Elmer Bancorp, Inc. Reports Strong Financial Growth for 2024
Elmer Bancorp, Inc. Fourth Quarter and Annual Results Overview
Elmer Bancorp, Inc. (“Elmer Bancorp” or the “Company”) (OTC Pink: ELMA) has shared its financial performance for the fourth quarter and the entirety of 2024. The Company, which operates through The First National Bank of Elmer, reported its quarterly net income with impressive growth that showcases its resilience.
Net Income and Earnings Growth
For the three months ending December 31, 2024, Elmer Bancorp recorded a net income of $715,000, translating into earnings of $0.63 per common share. This reflects a notable increase when compared to $638,000, or $0.56 per common share from the same quarter the previous year. Over the twelve months, the bank's net income reached $2.851 million, or $2.50 per common share, a decrease from the previous year’s earnings of $3.181 million, which amounted to $2.77 per share.
Net Interest Income Analysis
The Company reported a net interest income of $3.699 million for the last quarter of 2024, marking a decrease of $77,000 compared to the prior year’s total of $3.776 million. For the year, net interest income totaled $14.585 million, seeing a decline of $411,000 from 2023, primarily attributable to evolving interest rates impacting both loan income and deposits. Notably, the loan loss provision was adjusted, showing a $20,000 increase for the quarter while showing a $47,000 decrease for the full year.
Growth in Non-Interest Income
Elmer Bancorp experienced a rise in non-interest income during the fourth quarter, which improved by $24,000 compared to the same period last year. Factors contributing to this growth included higher revenues from Bank Owned Life Insurance (BOLI), increased Visa credit card commissions, and service fee income. Moreover, when looking at the annual increment, total non-interest income for the year was $67,000 higher than in 2023.
Cost Management and Challenges
Non-interest expenses for the quarter were reduced by $156,000 relative to last year, yet increased by $312,000 over the entire year. The quarterly decline can be attributed to the absence of any asset write-downs previously reported, alongside lower professional fees, while the overall rise in expenses resulted mainly from higher employment costs and data processing expenses.
Strong Asset Growth
Elmer Bancorp's total assets climbed to $380.7 million by the close of 2024, reflecting an increase of $16.1 million from the previous year. The growth in total loans reached $314.4 million by December 31, a yearly increase of $24.7 million. Additionally, total deposits grew to $343.5 million, up from $330.1 million in 2023, fueled by strategic initiatives including promotional campaigns for certificate deposits and money market accounts.
Robust Equity Position
The Company reported an increase in stockholders’ equity to $35.4 million at year-end, up from $32.7 million a year prior, translating into a book value of $30.91 per share. Elmer Bancorp successfully satisfied all regulatory capital requirements demonstrating robust performance amidst fluctuating market conditions.
Leadership Insights
Brian W. Jones, President and CEO, expressed satisfaction with the organization’s accomplishments, stating that achieving a net income of $2.851 million makes it the second-best annual performance in the bank’s history. He highlighted the successful efforts to promote deposit growth and adaptability in a shifting economic landscape. Furthermore, he acknowledged the launch of a new loan processing office, which aims to streamline operations and improve service delivery to clients.
Historical Context and Community Commitment
The First National Bank of Elmer has a proud legacy dating back to 1903, dedicated to serving the community. With an emphasis on delivering exceptional service and support for local businesses and residents, the bank continues to solidify its role as a community-centric institution.
Frequently Asked Questions
What financial results did Elmer Bancorp report for 2024?
Elmer Bancorp reported net income of $2.851 million for the year, equating to $2.50 per common share.
How did the net interest income change in 2024?
The net interest income for Elmer Bancorp was $14.585 million for 2024, down from $14.996 million in 2023.
What factors contributed to the increase in total deposits?
The increase in total deposits was largely driven by successful promotional efforts for certificate deposits and money market accounts.
What is the Company’s book value per share?
The book value per share for Elmer Bancorp was $30.91 at the end of 2024.
What is the long history of The First National Bank of Elmer?
The First National Bank of Elmer has been serving its community since 1903, offering a range of banking services tailored to both individuals and businesses.
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