Elmer Bancorp, Inc. Announces First Quarter 2021 Financial Results

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 quarter ended March 31, 2021.

For the three months ended March 31, 2021, Elmer Bancorp reported net income of $403,000, or $0.35 per common share, compared to $472,000, or $0.41 per common share for the quarter ended March 31, 2020.

Net interest income for the three months ended March 31, 2021 totaled $3.152 million, an increase of $400,000 from $2.752 million in the first quarter of 2020. Much of the increase is related to net fee income recognized on Payroll Protection Program loans (“PPP”). Non-interest income increased $5,800. Higher fees on sold mortgages, increases in the cash surrender value of Bank Owned Life Insurance (“BOLI”) and higher gains on the sale of Other Real Estate Owned (“OREO”), more than offset a decline in overdraft fee income. Non-interest expenses were $398,500 higher in the first quarter of this year compared to the same period last year. Increases in professional fees, employment costs and miscellaneous expenses were partially offset by lower advertising costs, data processing and OREO expenses. The loan loss provision was $102,000 higher than last year’s three-month period reflecting management’s continuing cautious approach to the uncertain impact of the coronavirus on our loan customer base.

Elmer Bancorp’s total assets at March 31, 2021 totaled $353.2 million, an increase of $67.1 million from the March 31, 2020 level of $286.1 million. Total core assets (excluding PPP related assets) totaled $327.0 million, an increase of $40.9 million from the March 31, 2020 total of $286.1 million. The increase in core assets results primarily from an increase in overnight investments.

Loans totaled $278.5 million at March 31, 2021, an increase of $25.4 million from the March 31, 2020 total of $253.1 million. Excluding PPP loan related balances of $26.1 million, total core loans were $252.4 million, $700,000 lower than March 31, 2020 reflecting the decline in loan demand during the pandemic. As part of the Coronavirus Aid Relief and Economic Security Act (“CARES Act”), during 2020, the Company’s customers had requested loan payment deferrals or payments of interest only on loans totaling $94.4 million. None of those customers remain in deferment and all have resumed contractual monthly payments. At March 31, 2021, the allowance for loan losses was 1.73% of total core loans compared to 1.36% at March 31, 2020.

Deposits totaled $322.6 million at March 31, 2021, a $65.6 million increase over the March 31, 2020 total of $257.0 million, reflecting increases of $33.0 million and $32.6 million in interest bearing and non-interest bearing deposits, respectively. Stockholders’ equity totaled $28.6 million at March 31, 2021. The book value per share at March 31, 2021 was $24.86 compared to $23.75 per share at March 31, 2020 and $24.55 per share at December 31, 2020. The Company and the Bank met all regulatory capital requirements at March 31, 2021.

Brian W. Jones, President and Chief Executive Officer stated, “While the first quarter of 2021 earnings were $69,000 lower than the first quarter of 2020, they exceeded fourth quarter 2020 results by $81,000. As we move forward, we continue to evaluate the level of loan loss provisions while remaining cautious during these uncertain times. As a result, we reduced the loan loss provision from $365,000 in the fourth quarter of 2020 to $195,000 in the first quarter of 2021. In addition, we anticipate non-interest expenses to return to a more reasonable level in the second quarter following an increase in professional fees in the fourth quarter of 2020 and the first quarter of 2021 resulting from consulting fees. As I mentioned before, be assured that The First National Bank of Elmer entered this pandemic as a strong, well-run financial institution, and that is exactly how we will exit it. We wish to thank our loyal customers, shareholders and team members for their continued support as we look forward to an improving economy.”

As previously reported, on April 1, 2021 the Company’s Board of Directors declared a cash dividend in the amount of $0.17 per common share, payable on May 3, 2021 to shareholders of record as of the close of business on April 16, 2021, an increase from the $0.16 per common share paid in November 2020.

Also, the Company previously announced that the Annual Meeting of Shareholders will be virtually held on Tuesday, June 1, 2021 at 2:00 p.m. Eastern Time. The record date for shareholders to vote at the Annual Meeting is April 9, 2021. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

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 legally 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 1-877-358-8141.

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 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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