Financial Press Release

First Quarter 2020


ELMER, NEW JERSEY – April 23, 2020 – 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, 2020.

For the three months ended March 31, 2020, Elmer Bancorp reported net income of $472,000, or $0.41 per common share, compared to $463,000, or $0.40 per common share for the quarter ended March 31, 2019.

Net interest income for the three months ended March 31, 2020 totaled $2.752 million, a decrease of $52,000 from $2.804 million in the first quarter of 2019. Non-interest income increased $26,600 resulting from increases in the cash surrender value of Bank Owned Life Insurance (“BOLI”) and miscellaneous fee income, while non-interest expenses were $12,800 lower in the first quarter of this year compared to the same period last year. Increases in data processing expenses, advertising costs and expenses on other real estate owned (“OREO”) were more than offset by lower employment costs, occupancy expenses and loan related expenses. The loan loss provision was $12,000 less than last year’s three-month period.

Elmer Bancorp’s total assets at March 31, 2020 totaled $286.1 million, an increase of $1.7 million from the March 31, 2019 level of $284.4 million. Loans totaled $253.1 million at March 31, 2020, an increase of $17.9 million from the March 31, 2019 total of $235.2 million. This increase primarily resulted from a higher volume of commercial real estate loans, construction loans and mortgage loans. The increase in loans was partially offset by decreases in overnight investments and the investment portfolio. Non-performing loans declined $700,000 from the first quarter of 2019 and totaled $1.6 million at March 31, 2020. At March 31, 2020, the allowance for loan losses was 1.36% of total loans. Total deposits at March 31, 2020 were $257.0 million, the same level as March 31, 2019. Stockholders’ equity totaled $27.3 million at March 31, 2020. At March 31, 2020, the book value per share was $23.77 compared to $22.43 per share at March 31, 2019 and $23.32 per share at December 31, 2019. The Company and the Bank met all regulatory capital requirements at March 31, 2020.

As previously reported, on April 1, 2020 the Company’s Board of Directors suspended the payment of cash dividends. Brian W. Jones, the President and CEO of the Company and the Bank, stated, “The Board believes that, in these challenging times, it is prudent to retain all earnings within the Bank to provide capital to protect against any adverse impacts of the coronavirus outbreak on the Bank.”
Cindee F. Low, Chairman of the Board, added, “As always, future dividends are not guaranteed, and are only payable if and when declared by the Board of Directors. The Board will evaluate whether to declare dividends in future quarters at the appropriate time.”

Commenting on the first quarter 2020 results, Mr. Jones stated, “While the first quarter of 2020 produced some very positive results, matching the performance from the first quarter of 2019, we are cautious as we move forward during these uncertain times. As a result, we committed to increasing the loan loss provision in the first quarter while maintaining a reasonable level of profitability. While the decrease in net interest income from the first quarter of 2019 was $52,000, a further decline is anticipated as the second quarter of this year will have the full effect of the Federal Reserve’s interest rate reductions that occurred late in the first quarter. As we all deal with the coronavirus (COVID-19) pandemic, 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 during these times of uncertainty.”

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 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.

Matthew A. Swift
Senior Vice President
Chief Financial Officer and
Chief Operating Officer