Neffs Bancorp : 2021

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S T R E N G T H . T R U S T . C O M M U N I T Y .

Neffs Bancorp, Inc.

Financial Statements and Selected Financial Data

December 31, 2021 and 2020

DIRECTORS of the CORPORATION and BANK

Robert B. Heintzelman	John J. Remaley
Duane A. Schleicher	Kevin A. Schmidt
John F. Sharkey, Jr.	Dean H. Snyder

Greg J. Rentschler

OFFICERS of the CORPORATION

Robert B. Heintzelman

Kevin A. Schmidt

President

OFFICERS of the BANK

Robert B. Heintzelman

Chairman of the Board

Marianne C. Eisenhauer

Vice President Commercial Lending/Credit Administration

Ronald K. Miller

Vice President Retail Lending

David C. Matulevich

Secretary/Treasurer

Michael J. Bailey

Executive Vice President,

Cashier and

Chief Operations Officer

David C. Matulevich

Vice President Administration/

Chief Financial Officer

Colleen A. Worysz

Vice President Customer

Service Relations

Vice President

Kevin A. Schmidt

President and Chief Executive Officer

Greta D. Mast

Vice President Commercial

Lending

Michael L. Pany

Vice President Commercial

Lending

December 2021

Dear Valued Shareholders:

On behalf of the Board of Directors of Neffs Bancorp, Inc., I am pleased to provide you with our 2021 Annual Report and some reflections about our year's performance.

In January of 2021, many of us believed the ripple effects of the coronavirus pandemic were subsiding with the ill-effects behind us. As all of us know, that is not the case. The related staff shortages, supply chain issues, and inflationary concerns still continue to dominate the headlines on a daily basis. These factors have trickled down to local communities and effects everyone, not just a few. During this difficult year, I speak for the entire Board of Directors when I say we are thankful for our management team and all the employees of The Neffs National Bank who rose above the call of duty to keep our valued clients safe, and their bank of choice open for business.

Through these adversities, Neffs Bancorp, Inc. and the subsidiary The Neffs National Bank persevered. While rates remained near historic lows for our loan and investment portfolios, we were able to capitalize on the strong real estate and indirect vehicle markets. The fee income through the government funded Paycheck Protection Program (PPP) proved to be a huge boost as a revenue stream. Strong growth in low-cost core deposits provided additional liquidity for the bank and further reinvestment opportunities.

Our success is noted as net income for the year reached $4,036,000, an increase of $446,000 or 12% over 2020. Total assets increased by $53,620,000 or 13% to $462,754,000 and deposits increased by 17% or $55,525,000 to $378,011,000.

With 2022, we will face many similar and new challenges. It appears that we will continue to feel the effects of the pandemic, leading to almost a "new normal." While we continue to be conservative in our growth projections and review of related costs, we strategically look at future initiatives. We will continue to review and implement the technology related products and services that will ensure we remain a progressive, yet safe and sound, organization. The success of our newly opened Walnutport office is well noted. We have and will continue to build and support a dedicated and robust staff in all areas of the organization.

We welcome future opportunities, and with your support as a shareholder and valued client of the bank, we will continue to remain a strong, trusted, and an integral part of our community.

Respectfully yours,

Robert B. Heintzelman President

NEFFS BANCORP, INC. AND SUBSIDIARY
TABLE OF CONTENTS
PAGE NO.
CONSOLIDATED FINANCIAL STATEMENTS:
Independent Auditors' Report	1
Consolidated Statements of Financial Condition	3
Consolidated Statements of Income	4
Consolidated Statements of Comprehensive Income	5
Consolidated Statements of Stockholders' Equity	6
Consolidated Statements of Cash Flows	7
Notes to Consolidated Financial Statements	8
SELECTED FINANCIAL DATA (unaudited)	38