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, 2024.
For the three months ended June 30, 2024, Elmer Bancorp reported
net income of $793,000, or $0.69 per average diluted common share,
compared to $949,000, or $0.83 per average diluted common share for
the three months ended June 30, 2023. For the six months ended June
30, 2024, net income totaled $1.424 million or $1.25 per average
diluted common share compared to $1.773 million, or $1.54 per
average diluted common share for the six months ended June 30,
2023.
Net interest income for the three months ended June 30, 2024
totaled $3.629 million, a decrease of $197,000 from $3.826 million
in the second quarter of 2023. For the six months ended June 30,
2024, net interest income totaled $7.241 million compared to $7.532
million for the six-month period 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. The loan loss provision was
reduced by $111,000 and $68,000 for the three and six months ended
June 30, 2024 compared to a reduction of $24,000 and $64,000 for
the three and six months ended June 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 June 30, 2024 was
$13,000 higher than the same three-month period a year ago and
$24,000 higher than the six-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 six-month period.
Non-interest expenses were higher for the three and six months
ended June 30, 2024 versus the prior year periods by $188,000 and
$295,000, respectively. Increases in employment costs, data
processing expenses, miscellaneous expenses and advertising and
marketing expenses were partially offset by lower Other Real Estate
Owned (“OREO”) expenses.
Elmer Bancorp’s total assets at June 30, 2024 totaled $383.0
million, an increase of $21.9 million from the June 30, 2023 level
of $361.1 million. Loans totaled $300.3 million at June 30, 2024,
an increase of $13.2 million from the June 30, 2023 total of $287.1
million. In addition, overnight investments increased $12.1 million
year-over-year. At June 30, 2024, the allowance for loan losses was
1.34% of total loans.
Deposits totaled $347.3 million at June 30, 2024, a $19.0
million increase over the June 30, 2023 total of $328.3 million,
reflecting an increase of $27.9 million in interest bearing
deposits partially offset by a decrease of $8.9 million in
non-interest bearing deposits. This increase in deposits is the
result of a successful money market and certificate of deposit
promotion. Stockholders’ equity totaled $33.8 million at June 30,
2024. The book value per share at June 30, 2024 was $29.53 compared
to $27.00 per share at June 30, 2023. The Bank met all regulatory
capital requirements to be classified as a well-capitalized
institution as of June 30, 2024.
Brian W. Jones, President and Chief Executive Officer stated,
“We are happy to report strong earnings for the second quarter of
2024. This coupled with our net income from the first quarter puts
the Bank in a positive position relative to historical earnings.
Year-over-year our deposits are up $19.0 million, assets are up
$21.9 million and loans are up $13.2 million. We continue to
balance our cost of funds against our interest income and have been
successful in maintaining an equilibrium between these two factors.
As we enter the third quarter, we remain committed to maintaining
our strong balance sheet and income statement. As always, we thank
our loyal customers, employees and board members for their faithful
and ongoing 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.
ELMER BANCORP, INC. AND SUBSIDIARIES SELECTED FINANCIAL
DATA (unaudited)
Six Months Ended
Three Months Ended
6/30/2024
6/30/2023
6/30/2024
3/31/2024
6/30/2023
Statement of Income Data:
(dollars in thousands, except
per share data)
Interest income
$
8,779
$
8,093
$
4,581
$
4,198
$
4,146
Interest expense
1,538
561
952
586
320
Net interest income
7,241
7,532
3,629
3,612
3,826
Provision for loan losses
(68
)
(64
)
(111
)
43
(24
)
Net interest income after provision for loan losses
7,309
7,596
3,740
3,569
3,850
Non-interest income
525
501
271
253
258
Non-interest expense
5,907
5,612
2,964
2,943
2,776
Income before income tax expense
1,927
2,485
1,047
879
1,332
Income tax expense
503
712
254
248
383
Net income
$
1,424
$
1,773
$
793
$
631
$
949
Earnings per share: Basic
$
1.25
$
1.54
$
0.69
$
0.55
$
0.83
Diluted
$
1.25
$
1.54
$
0.69
$
0.55
$
0.83
Weighted average basic shares outstanding
1,140,935
1,148,311
1,141,002
1,141,543
1,149,200
Weighted average diluted shares outstanding
1,141,375
1,149,492
1,141,277
1,142,931
1,150,220
Statement of Condition Data (Period End):
6/30/2024 6/30/2023 6/30/2024 3/31/2024
6/30/2023 Total investments
$
23,019
$
23,963
$
23,019
$
23,115
$
23,963
Total gross loans
$
300,283
$
287,074
$
300,283
$
298,151
$
287,074
Allowance for loan losses
$
4,011
$
4,013
$
4,011
$
4,125
$
4,013
Total assets
$
383,018
$
361,079
$
383,018
$
360,551
$
361,079
Total deposits
$
347,291
$
328,273
$
347,291
$
325,290
$
328,273
Total stockholders' equity
$
33,804
$
31,119
$
33,804
$
33,129
$
31,119
Book value per share
$
29.53
$
27.00
$
29.53
$
28.94
$
27.00
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version on businesswire.com: https://www.businesswire.com/news/home/20240725714251/en/
Cynthia L. Volk Senior Vice President Chief Financial Officer
1-856-358-8141