Elmer Bancorp, Inc. Announces Record First Quarter Earnings

ELMER, N.J.–(BUSINESS WIRE)–Elmer Bancorp, Inc. (OTC Pink: ELMA), (the Company), holding company for
The First National Bank of Elmer (the Bank), reported record first
quarter earnings. For the quarter ended March 31, 2017, net income was
$308 thousand, compared to $208 thousand for the quarter ended March 31,
2016, representing an increase of approximately 48.1%.

The increase in the first quarter net income over the prior year’s
quarter resulted from a $58 thousand increase in interest income due to
higher average loan and investment security balances, a $14 thousand
decrease in interest expense driven by lower cost deposits, and a $146
thousand decrease in the provision for loan losses, offset by increases
in noninterest expenses. Noninterest income remained relatively flat for
the quarter compared to the prior year period. For the quarter ended
March 31, 2017, noninterest expense increased $182 thousand, or 9.5%,
reaching $2.1 million compared to $1.9 million for the quarter ended
March 31, 2016, primarily due to increased operating costs associated
with the company’s growth and the continued allocation of capital to
support new infrastructure.

Elmer Bancorp’s total assets were $253.6 million at March 31, 2017
compared to $245.8 million at December 31, 2016, an increase of $7.8
million or 3.2%. Total loans reached $213.6 million at March 31, 2017
compared to $205.6 million at December 31, 2016, an increase of $8.0
million or 3.9%. Total deposits were $228.4 million at March 31, 2017
compared to $221.0 million at December 31, 2016, an increase of $7.4
million or 3.3%. Stockholder’s equity remained strong at approximately
$23.2 million at March 31, 2017, based on quarterly net income, offset
by declaration of the Company’s regular semi-annual dividend to
stockholders. At March 31, 2017, the Bank was “well capitalized” under
applicable banking regulations.

Brian W. Jones, President and Chief Executive Officer, stated: “We are
pleased to be able to report strong earnings in the first quarter of
2017. As part of the Bank’s Strategic Plan, we continue to restructure
our balance sheet and modify our mix of loans, focusing on relationship
banking. With the anticipated rise in interest rates, the Bank is well
positioned to respond to changes in the market. As with any institution
that seeks to grow, we look to enter more local markets and identify new
income streams. In 2016 we made significant inroads into the Jersey
Shore market and SBA lending, which will serve to diversify our client
base and augment income. We look forward to a year of continued growth
and taking advantage of the opportunity our market affords us.”

The Bank is headquartered at 10 South Main Street, Elmer, New Jersey and
offers convenient hours and a high level of service for traditional
consumer and commercial products and services. The Bank currently has
six branch offices located in Salem, Cumberland and Gloucester counties.

For more information about the Bank and its products and services,
please visit our website at http://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 statement
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 to be 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, whether as a result of new information of future events,
except as may be required by applicable law or regulation.


Elmer Bancorp, Inc.
Joanne C. Ware, SVP/CFO