ELMER BANCORP, INC. (“Elmer Bancorp” or the “Company”) (OTC Pink: ELMA), the parent company of The First National Bank of Elmer (the “Bank”), announces its operating results for the three and six months ended June 30, 2024.

For the three months ended June 30, 2024, Elmer Bancorp reported net income of $793,000, or $0.69 per average diluted common share, compared to $949,000, or $0.83 per average diluted common share for the three months ended June 30, 2023. For the six months ended June 30, 2024, net income totaled $1.424 million or $1.25 per average diluted common share compared to $1.773 million, or $1.54 per average diluted common share for the six months ended June 30, 2023.

Net interest income for the three months ended June 30, 2024 totaled $3.629 million, a decrease of $197,000 from $3.826 million in the second quarter of 2023. For the six months ended June 30, 2024, net interest income totaled $7.241 million compared to $7.532 million for the six-month period of 2023. This decrease in net interest income is the result of higher interest paid on deposits partially offset by higher interest and fees on loans and higher income on our overnight investments. The loan loss provision was reduced by $111,000 and $68,000 for the three and six months ended June 30, 2024 compared to a reduction of $24,000 and $64,000 for the three and six months ended June 30, 2023. This adjustment was the result of the required loan loss calculation under the Current Expected Credit Loss (CECL) model.

Non-interest income for the three months ended June 30, 2024 was $13,000 higher than the same three-month period a year ago and $24,000 higher than the six-month period last year. Increases in the cash surrender value of Bank Owned Life Insurance (“BOLI”) and increases in Visa credit card commissions accounted for the increase in the three and six-month period.

Non-interest expenses were higher for the three and six months ended June 30, 2024 versus the prior year periods by $188,000 and $295,000, respectively. Increases in employment costs, data processing expenses, miscellaneous expenses and advertising and marketing expenses were partially offset by lower Other Real Estate Owned (“OREO”) expenses.

Elmer Bancorp’s total assets at June 30, 2024 totaled $383.0 million, an increase of $21.9 million from the June 30, 2023 level of $361.1 million. Loans totaled $300.3 million at June 30, 2024, an increase of $13.2 million from the June 30, 2023 total of $287.1 million. In addition, overnight investments increased $12.1 million year-over-year. At June 30, 2024, the allowance for loan losses was 1.34% of total loans.

Deposits totaled $347.3 million at June 30, 2024, a $19.0 million increase over the June 30, 2023 total of $328.3 million, reflecting an increase of $27.9 million in interest bearing deposits partially offset by a decrease of $8.9 million in non-interest bearing deposits. This increase in deposits is the result of a successful money market and certificate of deposit promotion. Stockholders’ equity totaled $33.8 million at June 30, 2024. The book value per share at June 30, 2024 was $29.53 compared to $27.00 per share at June 30, 2023. The Bank met all regulatory capital requirements to be classified as a well-capitalized institution as of June 30, 2024.

Brian W. Jones, President and Chief Executive Officer stated, “We are happy to report strong earnings for the second quarter of 2024. This coupled with our net income from the first quarter puts the Bank in a positive position relative to historical earnings. Year-over-year our deposits are up $19.0 million, assets are up $21.9 million and loans are up $13.2 million. We continue to balance our cost of funds against our interest income and have been successful in maintaining an equilibrium between these two factors. As we enter the third quarter, we remain committed to maintaining our strong balance sheet and income statement. As always, we thank our loyal customers, employees and board members for their faithful and ongoing support.”

The First National Bank of Elmer, a nationally chartered bank headquartered in Elmer, New Jersey, has a long history of serving the community since its beginnings in 1903. We are a community bank focused on providing deposit and loan products to retail customers and to small and mid-sized businesses from our six full-service branch offices located in Cumberland, Gloucester and Salem Counties, New Jersey, including our main office located at 10 South Main Street in Elmer, New Jersey. Deposits at The First National Bank of Elmer are insured up to the legal maximum amount by the Federal Deposit Insurance Corporation (FDIC).

For more information about Elmer Bank and its products and services, please visit our website at www.ElmerBank.com or call toll free 1-856-358-7000.

Forward-Looking Statements

This press release and other statements made from time to time by the Company’s management contain express and implied statements relating to our future financial condition, results of operations, credit quality, corporate objectives, and other financial and business matters, which are considered forward-looking statements. These forward-looking statements are necessarily speculative and speak only as of the date made, and are subject to numerous assumptions, risks and uncertainties, all of which may change over time. Actual results could differ materially from those expected or implied by such forward-looking statements. Risks and uncertainties which could cause our actual results to differ materially and adversely from such forward-looking statements include economic conditions affecting the financial industry: changes in interest rates and shape of the yield curve, credit risk associated with our lending activities, risks relating to our market area, significant real estate collateral and the real estate market, operating, legal and regulatory risk, fiscal and monetary policy, economic, political and competitive forces affecting our business, our ability to identify and address cyber-security risks, and management’s analysis of these risks and factors being incorrect, and/or the strategies developed to address them being unsuccessful. Any statements made that are not historical facts should be considered forward-looking statements. You should not place undue reliance on any forward-looking statements. We undertake no obligation to update forward-looking statements or to make any public announcement when we consider forward-looking statements to no longer be accurate because of new information of future events, except as may be required by applicable law or regulation.

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