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 nine months ended September 30, 2024.

For the three months ended September 30, 2024, Elmer Bancorp reported net income of $712,000, or $0.62 per average diluted common share, compared to $771,000, or $0.67 per average diluted common share for the three months ended September 30, 2023. For the nine months ended September 30, 2024, net income totaled $2.136 million or $1.87 per average diluted common share compared to $2.544 million, or $2.21 per average diluted common share for the nine months ended September 30, 2023.

Net interest income for the three months ended September 30, 2024 totaled $3.645 million, a decrease of $43,000 from $3.688 million in the third quarter 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. For the nine months ended September 30, 2024, net interest income totaled $10.886 million compared to $11.220 million for the nine-month period of 2023. This decrease in net interest income is the result of higher interest paid on deposits and lower income on our overnight investments partially offset by higher interest and fees on loans. There was no loan loss provision in the third quarter of 2024 and a reduction in the loan loss provision of $68,000 for the nine months ended September 30, 2024 compared to an increase of $78,000 and $13,000 for the three and nine months ended September 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 September 30, 2024 was $17,000 higher than the same three-month period a year ago and $41,000 higher than the nine-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 nine-month period.

Non-interest expenses were higher for the three and nine months ended September 30, 2024 versus the prior year periods by $173,000 and $468,000, respectively. Increases in employment costs, data processing expenses, other operating expenses and occupancy and equipment expenses were partially offset by lower loan related expenses.

Elmer Bancorp’s total assets at September 30, 2024 totaled $381.7 million, an increase of $28.0 million from the September 30, 2023 level of $353.7 million. Loans totaled $300.9 million at September 30, 2024, an increase of $14.4 million from the September 30, 2023 total of $286.5 million. In addition, overnight investments increased $11.8 million year-over-year. At September 30, 2024, the allowance for loan losses was 1.33% of total loans.

Deposits totaled $344.4 million at September 30, 2024, a $24.3 million increase over the September 30, 2023 total of $320.1 million, reflecting an increase of $27.7 million in interest bearing deposits partially offset by a decrease of $3.4 million in non-interest bearing deposits. This increase in deposits is the result of a successful money market and certificate of deposit promotion held in the first and second quarters of this year. Stockholders’ equity totaled $35.2 million at September 30, 2024. The book value per share at September 30, 2024 was $30.77 compared to $27.44 per share at September 30, 2023. The Bank met all regulatory capital requirements to be classified as a well-capitalized institution as of September 30, 2024.

Brian W. Jones, President and Chief Executive Officer stated, “As we prepare for another year-end, we are pleased that our earnings have remained strong through the end of the third quarter. Loans increased $14.4 million, or 5.0% and deposits increased $24.3 million, or 7.6% year-over-year. Our net interest income is down from last year due to a higher cost of funds but this has been necessary to grow and retain our deposit base. It should be noted that our net interest margin (“NIM”) and cost of funds continues to be quite favorable compared to our peer group. As an institution, we are positioned to respond well to a decreasing interest rate environment and continue to structure our balance sheet to respond to such. We would like to thank our customers, shareholders and employees for their continued loyalty and 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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