ENB Financial Corp (OTCQX: ENBP) Q2 2026 profit reflects merger costs
Rhea-AI Filing Summary
ENB Financial Corp reported second quarter 2026 net income of $5,704,000, a 1.8% decline from $5,810,000 a year earlier, and six‑month net income of $9,728,000, down 3.9%. Diluted earnings per share were $1.00 for the quarter and $1.71 year‑to‑date, versus $1.02 and $1.79 in 2025.
Results reflect the February 1, 2026 acquisition of Cecil Bancorp, which added loans and deposits but generated $1,561,000 in merger and conversion-related expenses in the quarter. Excluding these non‑recurring costs, adjusted net income (non‑GAAP) was $6,944,000 and adjusted diluted EPS were $1.22 for the quarter.
Net interest income rose 17.7% year over year in the quarter on 21.9% higher loan interest, while noninterest income grew 13.4%. Operating expenses increased 31.2% as the company staffed new branches, invested in technology, and incurred integration costs. At June 30, 2026, total assets were $2.39 billion, loans $1.67 billion, deposits $2.02 billion, and tangible book value per share was $28.49.
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Negative
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Filing Explained
ENB’s completed Cecil acquisition added disclosed loans and deposits, while late-June system conversion is expected to remove redundant future costs.
ENB completed its Cecil Bancorp acquisition on February 1, 2026. The acquired net assets had a disclosed fair value of
Those acquired loan and deposit balances are part of the transaction's reported balance-sheet structure. ENB also completed conversion of the former Cecil operating system to a unified platform in late June. The company says this should eliminate redundant expenses in future periods; subsequent results will show whether that expected operating-cost effect appears.
8-K Event Classification
Key Figures
Key Terms
allowance for credit losses financial
net interest margin financial
efficiency ratio financial
bank owned life insurance financial
Earnings Snapshot
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FAQ
How did ENB Financial Corp (ENBP) perform in the second quarter of 2026?
What impact did the Cecil Bancorp acquisition have on ENBP's 2026 results?
How did ENB Financial Corp's net interest income and margin change in Q2 2026?
What were ENB Financial Corp (ENBP)'s asset quality and allowance levels at June 30, 2026?
How did ENB Financial Corp's noninterest income and expenses evolve in 2026?
What were ENB Financial Corp's key return and efficiency metrics in Q2 2026?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):
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| None | N/A | N/A |
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
CURRENT REPORT ON FORM 8-K
| Item 2.02 | Results of Operations and Financial Condition |
The Registrant issued a press release regarding earnings for the second quarter of 2026 on July 24, 2026 attached as Exhibit 99 and incorporated herein by reference.
The information furnished under this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99, shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.
| Item 9.01. | Financial Statements and Exhibits |
(d) Exhibits
The following exhibits are filed in this Current Report.
| Exhibit | |||
| Number | Description | Page Number | |
| 99 | Press Release regarding earnings for the second quarter of 2026 for ENB Financial Corp dated July 24, 2026. | 4 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| ENB FINANCIAL CORP | ||
| (Registrant) | ||
| Dated: July 27, 2026 | By: | /s/ Douglas P. Barton |
| Douglas P. Barton | ||
| Executive Vice President/Chief Financial Officer and Treasurer (Principal Financial Officer) | ||
3
| FOR IMMEDIATE RELEASE | Contact: | Douglas Barton |
| Phone: | 717-721-5267 |
ENB Financial Corp Reports Second Quarter 2026 Results
(July 24, 2026) -- Ephrata, PA – ENB Financial Corp (OTCQX: ENBP), reports net income for the second quarter of 2026 of $5,704,000, a $106,000, or 1.8% decrease, from the $5,810,000 earned during the second quarter of 2025. Net income for the six months ended June 30, 2026, was $9,728,000, a $398,000, or 3.9% decrease, from the $10,126,000 earned for the six months ended June 30, 2025. Basic and diluted earnings per share for the second quarter of 2026 and 2025 were $1.00 and $1.02, and year-to-date earnings per share were $1.71 in 2026 compared to $1.79 in 2025.
On February 1, 2026, the Corporation completed its acquisition of Cecil Bancorp (“Cecil”) and its wholly-owned subsidiary, Cecil Bank, which impacted the Corporation’s balance sheet and earnings for 2026. The fair value of the net assets acquired totaled $24,617,000, including net loans of $147,400,000 and deposits of $186,384,000. Included in net income was $1,240,000 and $3,027,000 of merger and conversion-related expenses, net of taxes, for the three and six months ended June 30, 2026. Adjusted net income (a non-GAAP measure) excluding merger and conversion-related charges, was $6,944,000 and $12,755,000, for the three and six months ended June 30, 2026. Adjusted diluted earnings per share (a non-GAAP measure), excluding merger and conversion-related charges, were $1.22 and $2.24 for the three and six months ended June 30, 2026.
The Corporation’s net interest income (NII) increased by $3,124,000, or 17.7%, for the three months ended June 30, 2026, and $5,276,000, or 15.3% for the six months ended June 30, 2026, compared to the same periods in 2025. Interest income on loans increased by $4,381,000, or 21.9%, and $7,470,000, or 19.0% for the three and six months ended June 30, 2026, which was favorably impacted by the addition of Cecil’s loans and organic loan growth. Interest income on securities decreased by $894,000, or 15.7% and $1,778,000, or 15.6%, for the three and six months ended June 30, 2026, compared to the same periods in 2025, due to both lower rates earned on securities as well as lower average balances. Interest expense on deposits in both periods declined, despite the addition of Cecil’s deposits, due to lower market interest rates and management’s strategy to lower the cost of funds, including pricing decisions and calling brokered deposits. Interest expense on borrowings in both periods increased principally due to higher levels of subordinated debt, with newly issued subordinated debt at a rate higher than previous issuances.
The Corporation recorded a release of provision for credit losses of $462,000 in the second quarter of 2026, compared to a provision expense of $126,000 for the second quarter of 2025. For the year-to-date period, provision release was $484,000, compared to a provision expense of $612,000 recorded for the six months ended June 30, 2025. The provision release recorded in 2026 was primarily related to favorable charge-off history, declines in classified assets in the legacy Ephrata National Bank and acquired Cecil loan portfolios, and lowering expected usage of off-balance sheet commitments. The allowance for credit losses as a percentage of total loans was 1.11% as of June 30, 2026 and December 31, 2025, and 1.13% as of June 30, 2025.
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ENB FINANCIAL CORP
Noninterest income increased by $481,000, or 13.4%, and $1,534,000, or 22.2%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year. Trust and investment services income increased $141,000, or 17.9%, and $334,000, or 20.2%, for the three and six months ended June 30, 2026, due to increased estate fees, additional wealth management accounts, and favorable market conditions. Service fees increased $257,000, or 36.9%, and $461,000, or 31.5%, for the three and six months ended June 30, 2026, compared to the same periods in 2025 due to additional customers and accounts from the Cecil acquisition. Commissions increased $103,000, or 10.2%, and $149,000, or 7.4%, for the three and six months ended June 30, 2026, compared to the same periods in 2025 due to increased interchange fees. The Corporation recorded $15,000 in gains on securities transactions in the second quarter of 2026, compared to $48,000 in the second quarter of 2025. For the year-to-date period, the Corporation recorded $47,000 in gains on securities transactions, compared to $285,000 in losses during the same period in 2025. Losses on security transactions in 2025 were due to strategic sales of investment securities to fund higher yielding loan growth. Gains on the sale of mortgages increased by $45,000, or 11.5%, and $118,000, or 14.2%, for the three and six months ended June 30, 2026, compared to the same periods in 2025, due to higher premiums earned on loans sold with servicing released and continued sales of permanent financing for construction loans originated in the prior year. Earnings on bank owned life insurance increased by $22,000, or 7.8%, and $155,000, or 28.0%, for the three and six months ended June 30, 2026, compared to the same periods in 2025, as death benefits were received related to two former directors in 2026.
Total operating expenses increased by $4,344,000, or 31.2%, and $8,309,000 or 29.4%, for the three and six months ended June 30, 2026, compared to the same periods in 2025. Additional personnel costs, occupancy expenses, and equipment charges that were necessitated by the acquisition were the primary drivers for higher operating expenses. Salary and benefit expenses, which make up the largest portion of operating expenses, increased by $825,000, or 9.9%, and $2,082,000, or 12.5%, for the three and six months ended June 30, 2026, compared to the same periods in 2025. Staffing four additional branches in Cecil County, merit increases, and higher medical insurance costs contributed to the increase. Computer software and data processing costs increased by $800,000, or 44.9%, and $1,070,000 or 29.7%, for the three and six months ended June 30, 2026, compared to the same periods in 2025, due to maintaining two operating systems due to the Cecil acquisition, evolution of enhanced products and services to meet customers’ needs, and increased transaction volumes. In late June 2026, the Corporation completed the conversion of the former Cecil operating system to a unified platform which should eliminate redundant expenses in future periods. The acquisition also resulted in merger and conversion-related expenses of $1,561,000 for the three months ended June 30, 2026, and $3,718,000 for the six months ended June 30, 2026, including additional professional services and employee severance payments.
The Corporation’s annualized return on average assets (ROA) and return on average stockholders’ equity (ROE) for the second quarter of 2026 decreased to 0.95% and 13.73%, respectively, from 1.06 % and 17.24% for the second quarter of 2025. For the six months ended June 30, 2026, the Corporation’s annualized ROA was 0.83%, compared to 0.93% in 2025, while the ROE was 11.85%, compared to 15.15% in 2025. The declines in both ratios during 2026 were primarily attributed to the non-recurring merger and conversion-related expenses’ impact on net income.
As of June 30, 2026, the Corporation had total assets of $2.39 billion, up 7.4%; gross loans of $1.67 billion, up 14.2%; total deposits of $2.02 billion, up 6.4%; and total stockholders’ equity of $171.5 million, up 23.0%, from balances at June 30, 2025.
ENB FINANCIAL CORP
ENB Financial Corp, headquartered in Ephrata, PA, is the bank holding company for its wholly-owned subsidiary Ephrata National Bank. Ephrata National Bank operates from eighteen full-service locations in Lancaster County, southeastern Lebanon County, southern Berks County, Pennsylvania and Cecil County, Maryland with the headquarters located at 31 E. Main Street, Ephrata, PA. Ephrata National Bank has been serving the community since 1881. For more information about ENB Financial Corp, visit the Corporation’s web site at www.enbfc.com.
Notice Regarding Forward Looking Statements
This news release may constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risk and uncertainties and other factors which may cause the actual results of ENB Financial Corp to be materially different from future results expressed or implied by such forward-looking statements. These forward-looking statements can be identified by use of terminology such as “expect”, “plan”, “anticipate”, “believe”, “estimate”, and similar words that are intended to identify such forward-looking statements. These forward-looking statements are based on management’s current expectations, assumptions, estimates, and projections about the Corporation, the financial services industry, and the economy. The Private Securities Reform Act of 1995 provides safe harbor in the event the projected future operations are not met. There are a number of future factors such as changes in fiscal or monetary policy, or changes in the economic climate that will influence the Corporation’s future operations. These factors are difficult to predict with regard to how likely and to what degree or significance they would occur. Actual results may differ materially from what may have been forecasted in the forward-looking statements. We are not obligated to publicly update any forward-looking statements to reflect the effects of subsequent events.
The review period for subsequent events extends up to and includes the filing date of the Corporation’s financial statements, when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information presented in this earnings release is subject to change.
ENB FINANCIAL CORP
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (Unaudited)
(in thousands, except per share and percentage data)
| Percent Change | ||||||||||||||||||||
| Jun 30, | Dec 31, | Jun 30, | June 30, 2026 vs | |||||||||||||||||
| Balance Sheet | 2026 | 2025 | 2025 | Dec 31, 2025 | Jun 30, 2025 | |||||||||||||||
| Securities | $ | 568,205 | $ | 588,949 | $ | 601,920 | -3.5% | -5.6% | ||||||||||||
| Total loans held for investment | 1,671,468 | 1,515,745 | 1,463,259 | 10.3 | 14.2 | |||||||||||||||
| Allowance for credit losses | 18,586 | 16,886 | 16,543 | 10.1 | 12.3 | |||||||||||||||
| Total assets | 2,390,906 | 2,257,727 | 2,225,903 | 5.9 | 7.4 | |||||||||||||||
| Deposits | 2,016,968 | 1,873,361 | 1,896,526 | 7.7 | 6.4 | |||||||||||||||
| Total borrowings | 190,542 | 209,251 | 175,618 | -8.9 | 8.5 | |||||||||||||||
| Stockholders' equity | 171,520 | 161,054 | 139,482 | 6.5 | 23.0 | |||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| Income Statement | June 30, | June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net interest income | $ | 20,781 | $ | 17,657 | $ | 39,710 | $ | 34,434 | ||||||||
| (Release)/provision for credit losses | (462 | ) | 126 | (484 | ) | 612 | ||||||||||
| Noninterest income | 4,062 | 3,581 | 8,441 | 6,907 | ||||||||||||
| Noninterest expense | 18,266 | 13,922 | 36,550 | 28,241 | ||||||||||||
| Income before taxes | 7,039 | 7,190 | 12,085 | 12,488 | ||||||||||||
| Provision for income taxes | 1,335 | 1,380 | 2,357 | 2,362 | ||||||||||||
| Net income | 5,704 | 5,810 | 9,728 | 10,126 | ||||||||||||
| Per Share Data | ||||||||||||||||
| Earnings per share | 1.00 | 1.02 | 1.71 | 1.79 | ||||||||||||
| Dividends per share | 0.18 | 0.18 | 0.36 | 0.36 | ||||||||||||
| Earnings Ratios | ||||||||||||||||
| Return on average assets (ROA) | 0.95% | 1.06% | 0.83% | 0.93% | ||||||||||||
| Return on average stockholders equity (ROE) | 13.73% | 17.24% | 11.85% | 15.15% | ||||||||||||
| Net Interest margin | 3.60% | 3.29% | 3.49% | 3.24% | ||||||||||||
| Efficiency ratio | 73.1% | 65.2% | 75.5% | 68.0% | ||||||||||||
ENB FINANCIAL CORP
Supplemental Reporting of Non-GAAP measures
Management believes providing certain “non-GAAP” financial information will assist readers in their understanding of the effect on recent financial results from non-recurring charges and the impact of intangible assets on our book value per share that resulted from our recent acquisition of Cecil.
Tangible book value per common share and impact of the merger and conversion-related expenses on net income and associated ratios, as used by the Corporation in this supplemental reporting presentation, are determined by methods other than those in accordance with generally accepted accounting principles (“GAAP”). While the Corporation’s management believes this information is a useful supplement to the GAAP-based measures reported, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies.
The following table presents the computation of each non-GAAP based measure shown together with its most directly comparable GAAP-based measure (amounts in thousands, except per share data):
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| $ | $ | |||||||
| Tangible Book Value per Common Share | ||||||||
| Stockholders' equity (most directly comparable GAAP-based measure) | 171,520 | 161,054 | ||||||
| Less: Goodwill | 6,712 | — | ||||||
| Core deposit intangible | 2,538 | — | ||||||
| Related tax effect | (569 | ) | — | |||||
| Total | 8,681 | — | ||||||
| Tangible common equity (non-GAAP) | 162,839 | 161,054 | ||||||
| Common shares outstanding | 5,715 | 5,693 | ||||||
| Book value per share (most directly comparable GAAP-based measure) | 30.01 | 28.29 | ||||||
| Intangible assets per share | 1.52 | — | ||||||
| Tangible book value per share (non-GAAP) | 28.49 | 28.29 | ||||||
ENB FINANCIAL CORP
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| $ | $ | $ | $ | |||||||||||||
| Adjusted Net Income and Adjusted Diluted Earnings Per Share | ||||||||||||||||
| Net income (most directly comparable GAAP-based measure) | 5,704 | 5,810 | 9,728 | 10,126 | ||||||||||||
| Plus: Merger and conversion related expenses | 1,561 | — | 3,718 | — | ||||||||||||
| Less: Related tax effect | (321 | ) | — | (691 | ) | — | ||||||||||
| Adjusted net income (non-GAAP) | 6,944 | 5,810 | 12,755 | 10,126 | ||||||||||||
| Weighted average diluted shares outstanding | 5,706 | 5,670 | 5,700 | 5,663 | ||||||||||||
| Diluted earnings per share (most directly comparable GAAP-based measure) | 1.00 | 1.02 | 1.71 | 1.79 | ||||||||||||
| Diluted earnings per share, adjusted (non-GAAP) | 1.22 | 1.02 | 2.24 | 1.79 | ||||||||||||
| Efficiency ratio | ||||||||||||||||
| Operating expenses (most directly comparable GAAP-based measure) | 18,266 | 13,922 | 36,550 | 28,241 | ||||||||||||
| Less: Merger and conversion-related expenses | (1,561 | ) | — | (3,718 | ) | — | ||||||||||
| Adjusted operating expenses | 16,705 | 13,922 | 32,832 | 28,241 | ||||||||||||
| Net interest income on a tax-equivalent basis | 20,922 | 17,763 | 39,994 | 34,647 | ||||||||||||
| Other operating income (most directly comparable GAAP-based measure) | 4,062 | 3,581 | 8,441 | 6,907 | ||||||||||||
| Total revenues | 24,984 | 21,344 | 48,435 | 41,554 | ||||||||||||
| Less: Realized gains (losses) on sales of securities | 8 | (2 | ) | 10 | (286 | ) | ||||||||||
| Total revenues, as adjusted | 24,976 | 21,346 | 48,425 | 41,840 | ||||||||||||
| Efficiency ratio on GAAP basis (most directly comparable GAAP based measure) | 73.1 | % | 65.2 | % | 75.5 | % | 68.0 | % | ||||||||
| Efficiency ratio, as adjusted | 66.9 | % | 65.2 | % | 67.8 | % | 67.5 | % | ||||||||
(end)