ELMER BANCORP, INC. announces financial results for the second quarter of 2022

ELMER, NJ–(BUSINESS THREAD)–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 of 2022.

For the three months ended June 30, 2022, Elmer Bancorp reported net income of $509,000, or $0.44 per diluted average common share, compared to $530,000, or $0.46 per diluted average common share diluted during the three months ended June 30, 2021. For the six months. months ended June 30, 2022, net income was $820,000, or $0.71 per diluted average common share compared to $933,000, or $0.81 per diluted average common share for the six months ended June 30, 2021.

Net interest income for the three months ended June 30, 2022 was $2.997 billion, an increase of $44.8 billion from $2.952 billion in the second quarter of 2021. For the six months ended June 30, 2022, net interest income was $5.743 billion compared to $6103 million. for the six-month period of 2021. The increase in net interest income for the three-month period is the result of higher interest on our overnight investments, partially offset by interest income on loans from Payroll Protection Program (PPP) and net fee income for loans recognized as PPP Loans. Much of the decrease in the six-month period is related to increased net fee income recognized on PPP loans in the first quarter of 2021. The provision for loan losses was $105,000 and $300,000 in the three and six months ended June 30, 2021 compared to no provision for insolvencies during the first or second quarter of this year. The allowance for credit losses was 1.73% of total core loans at June 30, 2022, compared to 1.80% of total core loans at June 30, 2021.

Noninterest income for the three months ended June 30, 2022 was $25,500 higher than the same three-month period a year ago and $36,200 higher than the six-month period last year. Higher service fee income, partially offset by lower fees on mortgages sold, explained the increase in the three- and six-month period.

Non-interest expenses were higher for the three and six months ended June 30, 2022 compared to the prior year periods by $203,800 and $134,700, respectively. Increases in labor costs, occupancy and equipment expenses, miscellaneous expenses and data processing expenses were partially offset by lower professional fees and loan-related expenses.

Elmer Bancorp’s total assets at June 30, 2022 were $392.9 million, an increase of $21.5 million from the June 30, 2021 level of $371.4 million. Total core assets (excluding PPP-related assets) totaled $392.6 million, an increase of $40.5 million from the June 30, 2021 total of $352.1 million. Total loans were $263.1 million as of June 30, 2022, a decrease of $4.6 million from the June 30, 2021 total of $267.7 million. Excluding June 30, 2022 PPP loan-related balances of $316,000, total core loans were $262.8 million, $14.4 million more than June 30, 2021. Additionally, overnight investments increased $14.1 million and investment values ​​increased $10.3 million year over year.

Deposits totaled $363.0 million at June 30, 2022, an increase of $22.5 million from the June 30, 2021 total of $340.5 million, reflecting increases of 17.1 million and $5.4 million in interest-bearing and non-earning deposits, respectively. Shareholders’ equity amounted to $28.2 million as of June 30, 2022. Book value per share as of June 30, 2022 was $24.51 compared to $25.13 per share as of June 30, 2022. of June 2021. The Bank met all regulatory capital requirements on June 30, 2022.

Brian W. Jones, President and CEO, stated: “As inflation continues to be a significant economic issue, we remain cautious about the effect it will have on our customer base. Although core loan balances grew $14.2 million since year-end 2021, we continue to maintain a strong loan loss allowance of 1.73% of total core loans as of 30 June 2022. Net interest income increased quarterly as rates increased on our overnight investments in the second quarter, which contributed to the $199,000 increase in net income in the first quarter. We are pleased that our deposit base remained stable as normal seasonal fluctuations contributed to the quarter-on-quarter increase in deposit balances. We would like to thank our loyal customers and shareholders for their continued support of the bank and a big thank you to our employees for their hard work and dedication.”

First National Bank of Elmer, a national bank headquartered in Elmer, New Jersey, has a long history of serving the community since its inception in 1903. We are a community bank focused on offering deposit and loan products to retail customers and small businesses. and medium-sized businesses from our six full-service branches 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 to the maximum legal amount by the Federal Deposit Insurance Corporation (FDIC).

For more information about Elmer Bank and its products and services, visit our website at www.ElmerBank.com or call toll-free 1-877-358-8141.

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 consider future 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, which may change over time. Actual results could differ materially from those expected or implied by these forward-looking statements. Risks and uncertainties that could cause our actual results to differ materially and adversely from these forward-looking statements include economic conditions affecting the financial industry: changes in interest rates and the shape of the yield curve, credit risk associated with our lending activities, risks related to our market area, material collateral and the real estate market, operational, legal and regulatory risk, fiscal and monetary policy, economic, political and competitive forces that affect our business, our ability to identify and address cybersecurity risks, and management’s analysis. that these risks and factors are incorrect and/or that the strategies developed to address them are not successful. Any statement made that is not a historical fact should be considered a forward-looking statement. You should not place undue reliance on any forward-looking statements. We undertake no obligation to update forward-looking statements or make any public announcements when we believe that forward-looking statements are no longer accurate as a result of new information about future events, except as required by applicable law or regulation.

ELMER BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(not audited)

Six months completed Three months completed

30/06/2022 30/06/2021 30/06/2022 31/03/2022 30/06/2021

Income statement data: ($thousands, except per share data)
Interest income

$

6,142

$

6,544

$

3,195

$

2,948

$

3,176

Interest expenses

399

440

198

202

224

Net interest income

5,743

6.104

2,997

2,746

2,952

Provision for insolvency

300

105

Interest margin after provision

for loan losses

5,743

5,804

2,997

2,746

2,847

Non-interest bearing income

531

495

269

262

244

Non-interest expenses

5,153

5,019

2,564

2,589

2,360

Income before profit tax expense

1.121

1,280

702

419

731

Income tax expense

301

347

193

108

201

Net income

$

820

$

933

$

509

$

311

$

530

Earnings to share:

Basic

$

0.71

$

0.81

$

0.44

$

0.27

$

0.46

diluted

$

0.71

$

0.81

$

0.44

$

0.27

$

0.46

Weighted average of the basic shares outstanding

1,147,408

1,146,860

1,148,418

1,146,867

1,146,393

Weighted average diluted shares outstanding

1,149,378

1,148,822

1,149,954

1,149,266

1,148,062

Statement of conditions data (end of period): 30/6/2022 30/6/2021 30/6/2022 31/03/2022 30/6/2021
Total investments

$

25,910

$

15,652

$

25,910

$

27,521

$

15,652

Total gross loans

$

263.109

$

267,734

$

263.109

$

262,994

$

267,734

Provision for loan losses

$

4,554

$

4,468

$

4,554

$

4,532

$

4,468

Total assets

$

392,923

$

371,412

$

392,923

$

380,846

$

371,412

Total deposits

$

363,042

$

340,499

$

363,042

$

350,534

$

340,499

Total shareholders’ equity

$

28,215

$

28,900

$

28,215

$

28,640

$

28,900

Book value per share

$

24.51

$

25.13

$

24.51

$

24.88

$

25.13



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