enbp-20260630

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________________ to ________________________

ENB Financial Corp

(Exact name of registrant as specified in its charter)

Pennsylvania	000-53297	51-0661129
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No)

31 E. Main St., Ephrata, PA	17522-0457
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (717) 733-4181

Former name, former address, and former fiscal year, if changed since last report Not Applicable

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None.		N/A		N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.)

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of August 1, 2026, the registrant had 5,714,719 shares of $0.10 (par) Common Stock outstanding.

ENB FINANCIAL CORP

INDEX TO FORM 10-Q

June 30, 2026

Part I – FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Consolidated Balance Sheets at June 30, 2026 and 2025, and December 31, 2025 (Unaudited)	3

		Consolidated Statements of Income for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)	4

		Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)	5

		Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)	6

		Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025 (Unaudited)	7

		Notes to the Unaudited Consolidated Interim Financial Statements	8-33

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34-54

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	55-58

	Item 4.	Controls and Procedures	59


Part II – OTHER INFORMATION			60

	Item 1.	Legal Proceedings	60

	Item 1A.	Risk Factors	60

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60

	Item 3.	Defaults upon Senior Securities	60

	Item 4.	Mine Safety Disclosures	60

	Item 5.	Other Information	60

	Item 6.	Exhibits	61


SIGNATURE PAGE			63

ENB FINANCIAL CORP

Part I - Financial Information

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

	June 30,			December 31,			June 30,
	2026			2025			2025
	$			$			$
ASSETS
Cash and due from banks		8,867			6,630			10,477
Interest-bearing deposits in other banks		28,278			53,943			54,792
Total cash and cash equivalents		37,145			60,573			65,269
Securities available for sale (at fair value, net of allowance for credit losses of $0)		558,677			579,468			592,093
Equity securities (at fair value)		9,528			9,481			9,827
Loans held for sale		2,038			2,588			2,282
Loans (net of unearned income)		1,671,468			1,515,745			1,463,259
Less: Allowance for credit losses		18,452			16,886			16,543
Net loans		1,653,016			1,498,859			1,446,716
Premises and equipment		34,593			31,987			29,552
Other real estate owned		748			—			989
Regulatory stock		11,559			10,870			10,970
Goodwill		6,712			—			—
Core deposit intangible		2,538			—			—
Bank owned life insurance		36,002			37,019			36,495
Other assets		38,485			26,882			31,710
Total assets		2,391,041			2,257,727			2,225,903

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing		706,839			649,090			628,757
Interest-bearing		1,310,129			1,224,271			1,267,769
Total deposits		2,016,968			1,873,361			1,896,526
Short-term borrowings		76,000			60,000			60,000
Long-term debt		53,007			67,838			75,822
Subordinated debt		61,535			81,413			39,796
Other liabilities		12,011			14,061			14,277
Total liabilities		2,219,521			2,096,673			2,086,421
Stockholders' equity:
Common stock, par value $0.10
Shares: Authorized 24,000,000
Issued 5,739,114 and Outstanding 5,714,719 as of 6/30/26, 5,692,991 as of 12/31/25, and 5,683,488 as of 6/30/25		574			574			574
Capital surplus		4,096			3,979			3,966
Retained earnings		187,158			179,481			170,094
Accumulated other comprehensive loss, net of tax		(19,862	)		(22,137	)		(34,217	)
Less: Treasury stock cost on 24,395 shares as of 6/30/26, 46,123 shares as of 12/31/25 and 55,626 as of 6/30/25		(446	)		(843	)		(935	)
Total stockholders' equity		171,520			161,054			139,482
Total liabilities and stockholders' equity		2,391,041			2,257,727			2,225,903

See Notes to the Unaudited Consolidated Interim Financial Statements

ENB FINANCIAL CORP

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

	Three Months ended June 30,						Six Months ended June 30,
	2026			2025			2026			2025
	$			$			$			$
Interest and dividend income:
Interest and fees on loans		24,355			19,974			46,734			39,264
Interest on securities available for sale
Taxable		4,138			5,031			8,362			10,108
Tax-exempt		645			646			1,285			1,317
Interest on deposits at other banks		251			410			473			625
Dividend income		347			355			691			667
Total interest and dividend income		29,736			26,416			57,545			51,981
Interest expense:
Interest on deposits		6,569			6,885			12,967			13,787
Interest on borrowings		2,386			1,874			4,868			3,760
Total interest expense		8,955			8,759			17,835			17,547
Net interest income		20,781			17,657			39,710			34,434
(Release) provision for credit losses		(462	)		126			(484	)		612
Net interest income after (release) provision for credit losses		21,243			17,531			40,194			33,822
Other income:
Trust and investment services income		928			787			1,985			1,651
Service fees		953			696			1,923			1,462
Commissions		1,117			1,014			2,175			2,026
Loss on the sale of debt securities, net		—			(2	)		—			(307	)
Gain on equity securities, net		15			50			47			22
Gains on sale of mortgages		436			391			948			830
Earnings on bank-owned life insurance		304			282			708			553
Other income		309			363			655			670
Total other income		4,062			3,581			8,441			6,907
Operating expenses:
Salaries and employee benefits		9,182			8,357			18,719			16,637
Occupancy		1,180			873			2,285			1,782
Equipment		628			324			1,160			710
Advertising & marketing		441			375			789			742
Computer software & data processing		2,581			1,781			4,670			3,600
Shares tax		464			382			914			743
Professional services		1,080			811			2,036			1,654
Core deposit intangible amortization		125			—			208			—
Merger and conversion related expenses		1,561			—			3,718			—
Other expenses		1,024			1,019			2,051			2,373
Total operating expenses		18,266			13,922			36,550			28,241
Income before income 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 information:
Basic and diluted earnings per share		1.00			1.02			1.71			1.79
Cash dividends paid per share		0.18			0.18			0.36			0.36

See Notes to the Unaudited Consolidated Interim Financial Statements

ENB FINANCIAL CORP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(DOLLARS IN THOUSANDS)

	Three Months ended June 30,						Six Months ended June 30,
	2026			2025			2026			2025
	$			$			$			$
Net income		5,704			5,810			9,728			10,126
Other comprehensive income , net of tax:
Securities available for sale:
Unrealized gains (losses) arising during the period		4,042			(795	)		2,473			690
Reclassification adjustment for losses included in net income on securities available for sale		—			2			—			307
Reclassification adjustment for losses (gains) realized in net income on fair value hedge		11			(318	)		4			(653	)
Net unrealized gains (losses)		4,053			(1,111	)		2,477			344
Income tax effect		(881	)		233			(331	)		(126	)
Net of tax amount		3,172			(878	)		2,146			218
Cash flow hedge:
Changes in unrealized (losses) gains on cash flow hedge		(8	)		9			108			(215	)
Reclassification adjustment for losses (gains) included in net income		31			(77	)		55			(154	)
Income tax effect		(6	)		14			(34	)		77
Net of tax amount		17			(54	)		129			(292	)
Total other comprehensive income (loss)		3,189			(932	)		2,275			(74	)
Total comprehensive income		8,893			4,878			12,003			10,052

See Notes to the Unaudited Consolidated Interim Financial Statements

ENB FINANCIAL CORP

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

(DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

									Accumulated
									Other						Total
	Common		Capital			Retained			Comprehensive			Treasury			Stockholders'
	Stock		Surplus			Earnings			Loss			Stock			Equity
	$		$			$			$			$			$

Balances, January 1, 2025		574		3,957			162,006			(34,143	)		(1,410	)		130,984
Net income		—		—			4,316			—			—			4,316
Other comprehensive income net of tax		—		—			—			858			—			858
Stock-based compensation expense		—		15			—			—			—			15
Treasury stock issued - 13,799 shares		—		(11	)		—			—			232			221
Cash dividends paid, $0.18 per share		—		—			(1,018	)		—			—			(1,018	)
Balances, March 31, 2025		574		3,961			165,304			(33,285	)		(1,178	)		135,376
Net income		—		—			5,810			—			—			5,810
Other comprehensive loss net of tax		—		—			—			(932	)		—			(932	)
Stock-based compensation expense		—		18			—			—			—			18
Treasury stock issued - 14,419 shares		—		(13	)		—			—			243			230
Cash dividends paid, $0.18 per share		—		—			(1,020	)		—			—			(1,020	)
Balances, June 30, 2025		574		3,966			170,094			(34,217	)		(935	)		139,482

Balances, January 1, 2026		574		3,979			179,481			(22,137	)		(843	)		161,054
Net income		—		—			4,024			—			—			4,024
Other comprehensive loss net of tax		—		—			—			(914	)		—			(914	)
Stock-based compensation expense		—		7			—			—			—			7
Treasury stock issued - 10,146 shares		—		55			—			—			186			241
Cash dividends paid, $0.18 per share		—		—			(1,025	)		—			—			(1,025	)
Balances, March 31, 2026		574		4,041			182,480			(23,051	)		(657	)		163,387
Net income		—		—			5,704			—			—			5,704
Other comprehensive income net of tax		—		—			—			3,189			—			3,189
Stock-based compensation expense		—		7			—			—			—			7
Treasury stock issued - 11,582 shares		—		48			—			—			211			259
Cash dividends paid, $0.18 per share		—		—			(1,026	)		—			—			(1,026	)
Balances, June 30, 2026		574		4,096			187,158			(19,862	)		(446	)		171,520

See Notes to the Unaudited Consolidated Interim Financial Statements

ENB FINANCIAL CORP

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(DOLLARS IN THOUSANDS)

	Six Months Ended June 30,
	2026			2025
	$			$
Cash flows from operating activities:
Net income		9,728			10,126
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization expense		462			266
Decrease in interest receivable		318			374
(Decrease) in interest payable		(219	)		(491	)
(Release) provision for credit losses		(484	)		612
Losses on the sale of debt securities, net		—			307
(Gains) on equity securities, net		(47	)		(22	)
Gains on sale of mortgages		(948	)		(830	)
Loans originated for sale		(22,158	)		(23,585	)
Proceeds from sales of loans		23,656			26,129
Earnings on bank-owned life insurance		(708	)		(553	)
Depreciation of premises and equipment and amortization of software		1,366			1,045
Deferred income tax		1,444			336
Amortization of deferred fees on subordinated debt		122			80
Stock-based compensation expense		14			33
Other assets and other liabilities, net		(2,484	)		(3,455	)
Net cash provided by operating activities		10,062			10,372

Cash flows from investing activities:
Securities available for sale:
Proceeds from maturities, calls, and repayments		25,492			36,322
Proceeds from sales		17,843			12,246
Purchases		(4,009	)		(19,993	)
Equity securities:
Proceeds from sales		201			128
Purchases		(201	)		(222	)
Purchase of regulatory bank stock		(1,306	)		(535	)
Redemptions of regulatory bank stock		1,702			354
Proceeds from bank-owned life insurance		1,649			—
Net (increase) in loans		(8,834	)		(36,230	)
Purchases of premises and equipment, net		(1,702	)		(2,498	)
Net cash paid for acquisition		(968	)		—
Purchase of computer software		(77	)		(80	)
Net cash provided by (used in) investing activities		29,790			(10,508	)
Cash flows from financing activities:
Net increase in demand, and savings accounts		30,678			728
Net (decrease) increase in time deposits		(73,576	)		5,355
Net proceeds from short-term borrowings		16,000			—
Repayments of long-term debt		(14,831	)		(8,000	)
Repayment of subordinated debt		(20,000	)		—
Dividends paid		(2,051	)		(2,038	)
Proceeds from sale of treasury stock		500			451
Net cash used for financing activities		(63,280	)		(3,504	)
Decrease in cash and cash equivalents		(23,428	)		(3,640	)
Cash and cash equivalents at beginning of period		60,573			68,909
Cash and cash equivalents at end of period		37,145			65,269
Supplemental disclosures of cash flow information:
Interest paid		18,054			19,280
Income taxes paid		1,450			2,420
Supplemental disclosure of non-cash investing and financing activities:
Fair value adjustments for securities available for sale		(179	)		4,763
Real estate owned acquired in settlement of loans		748			—

Noncash transactions related to merger:
Assets acquired, excluding cash		181,320			—
Liabilities assumed		187,064			—

See Notes to the Unaudited Consolidated Interim Financial Statements

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

1. Summary of Significant Accounting Policies

Basis of Presentation

ENB Financial Corp (“the Corporation”) is the bank holding company for its wholly-owned subsidiary Ephrata National Bank (the “Bank”). Ephrata National Bank has one wholly-owned subsidiary, ENB Insurance, LLC which is consolidated into its financial statements. This Quarterly Report on Form 10-Q for the second quarter of 2026 is reporting on the results of operations and financial condition of ENB Financial Corp on a consolidated basis.

The accompanying unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information, Securities and Exchange Commission rules that permit reduced disclosure for interim periods, Article 10 of Regulation S-X, and general practices within the banking industry. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all significant adjustments considered necessary for fair presentation have been included. There have been no material changes to the Corporation’s significant accounting policies for the three and six months ended June 30, 2026. The December 31, 2025 consolidated balance sheet information contained in this Quarterly Report on Form 10-Q was derived from the Corporation’s 2025 audited consolidated financial statements. The unaudited condensed consolidating financial statements should be read in conjunction with the audited consolidated financial statements, including notes thereto, included in the Corporation’s Annual Report on Form 10-K for the year ending December 31, 2025. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain comparative amounts for the prior year have been reclassified to conform to the current period’s reporting format. Such reclassifications did not affect net income or stockholders’ equity.

Operating results for the three and six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on information available at the time. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

The Corporation’s management has evaluated all activity of the Corporation and concluded that subsequent events are properly reflected in the Corporation’s unaudited condensed consolidated financial statements as required by GAAP.

2. Revenue from Contracts with Customers

The Corporation records revenue from contracts with customers in accordance with Accounting Standards Topic 606, Revenue from Contracts with Customers (Topic 606). Under Topic 606, the Corporation must identify contracts with customers, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when the Corporation satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods.

The Corporation’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

3. Business Acquisition

Effective February 1, 2026, the Corporation completed its previously announced Acquisition of Cecil Bancorp, Inc. (“Cecil”) pursuant to an Agreement and Plan of Stock Acquisition, by and among the Corporation, ENB South Acquisition Subsidiary, Inc. (“Acquisition Subsidiary”), The Ephrata National Bank, Cecil, and Cecil Bank (the “Agreement”). At the effective time of the Acquisition, Acquisition Subsidiary merged with and into Cecil, with Cecil surviving the merger and becoming the wholly-owned subsidiary of the Corporation. Immediately after the merger, Cecil’s board of directors approved, and sole stockholder adopted the complete liquidation and dissolution of Cecil, pursuant to the plan of complete liquidation. Immediately thereafter that, Cecil Bank merged with and into The Ephrata National Bank, a national banking association and the Corporation’s wholly-owned subsidiary, with The Ephrata National Bank as the surviving bank, collectively the Acquisition. Subject to the terms and conditions of the Agreement, as adjusted, each outstanding share of Cecil common stock was converted into the right to receive $1.88 in cash. In addition, all outstanding and unexercised options to purchase shares of stock of Cecil common stock were redeemed for cash. The transaction was valued at $31,329,000.

The following table summarizes the actual cash consideration paid for outstanding shares of Cecil’s common stock, including restricted stock that vested upon change in control, and the settlement of stock options (dollars in thousands except per share data):

			$
Cash exchange for outstanding Cecil common shares:
Number of shares outstanding		16,426,998
Exchange rate per share	$	1.88
Cash exchanged for outstanding shares				30,883
Number of options outstanding		769,231
Exchange rate per option	$	1.88
Exercise price per option		1.30
Difference		0.58
Cash exchanged for outstanding options				446
Cash exchanged for outstanding Cecil common shares				31,329

Under the acquisition method of accounting, the total Acquisition consideration is allocated to the acquired tangible and intangible assets and assumed liabilities of Cecil based on their estimated fair value as of the Acquisition date. The excess of the Acquisition consideration over the fair value of the assets acquired and liabilities assumed, if any, is allocated to goodwill.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

The total Acquisition consideration as shown in the table above is allocated to Cecil’s tangible and intangible assets and liabilities based on their fair value as follows (in thousands):

	Cecil Bancorp, Inc.						Cecil Bancorp, Inc.
	Book Value			Fair Value			Fair Value
	February 1, 2026			Adjustments			February 1, 2026
	$			$			$

Total purchase price consideration								31,329

Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and equivalents		30,361			—			30,361
Securities available for sale		19,213			(183	)		19,030
Loans, gross		152,992			(5,592	)		147,400
Allowance for credit losses		(1,517	)		(481	)		(1,998	)
Loans, net of allowance		151,475			(6,073	)		145,402
Premises and equipment		2,580			(463	)		2,117
Regulatory stock		1,085			—			1,085
Core deposit intangible		—			2,746			2,746
Operating lease right of use asset		578			(107	)		471
Deferred tax assets		9,604			(1,633	)		7,971
Other assets		2,712			(214	)		2,498
Total identifiable assets acquired		217,608			(5,927	)		211,681
Deposits		186,681			(297	)		186,384
Operating lease liability		591			(89	)		502
Reserve for unfunded commitments		52			(37	)		15
Other liabilities		163			—			163
Total liabilities assumed		187,487			(423	)		187,064
Total identifiable net assets		30,121			(5,504	)		24,617
Goodwill								6,712

The following discusses the valuation methodologies used to estimate the fair values of major categories of assets acquired and liabilities assumed from the Acquisition. The Corporation used independent valuation specialists to assist with the fair value determinations.

Securities available for sale: The Corporation decreased the fair value of securities available for sale for the differences between Cecil’s matrix pricing and the third party quoted prices for the securities, as the majority were liquidated shortly after the Acquisition date.

Loans: The Corporation early adopted the provisions of Financial Accounting Standards Board ASU 2025-08, Financial Instruments – Credit Losses (Topic 326). This ASU requires that loans acquired without credit deterioration and deemed “seasoned”, will be considered purchased seasoned loans (“PSLs”). PSLs include all loans acquired in a business combination, which do not have “more than significant” deterioration of credit quality since origination. Loans with more than significant deterioration of credit quality, or purchase credit deteriorated (“PCD”) loans, included loans on nonaccrual status, loans with historical delinquencies since loan origination or having a risk rating of watch, special mention, substandard, doubtful or loss based on the Corporation’s internal risk rating system.

The fair value of loans acquired were estimated using the discounted cash flow method on an individual loan basis. To estimate the value of the loans, each loan’s contractual cash flows were projected, adjusted for expected current market rates, prepayments, and credit losses. Assumptions for credit losses were based on the risk characteristics of each loan. For loans specifically evaluated by the Corporation, credit losses were based on estimated losses identified by the Corporation. The projected cash flows were discounted to present value using a discount rate based on the relative risk of cash flows. An allowance for credit losses was determined for PSL and PCD loans using the same methodology as the Corporation’s other loans. The initial allowance for credit losses determined on a collective basis was allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. These PSL and PCD loans were evaluated on a collective basis and were accounted for using the gross-up approach at Acquisition (i.e., record the loan at its amortized cost and separately record an allowance for expected credit losses). Subsequent changes to the allowance for credit losses will be recorded through the provision for credit loss expense. The component of the fair value mark related to interest rates will be accreted into income over the estimated remaining maturities of the loans.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

Of the $147,400,000 net loans acquired, $11,014,000 were identified as PCD loans on the Acquisition date. The following table provides a summary of these PCD loans at Acquisition at February 1, 2026 (in thousands):

	February 1,
	2026
	$

Purchased deteriorated loans
Par value of acquired loans at acquisition		11,234
Allowance for credit losses at acquisition		(206	)
Non-credit discount at acquisition		(14	)
Total acquisition consideration		11,014

In connection with the adoption of ASU 2025-08, the Corporation recorded a $1,792,000 allowance for credit losses on PSLs; no provision expense was recorded at the date of Acquisition.

Premises and equipment: The fair value of bank premises and equipment was valued by obtaining recent market data for similar properties, with adjustments for characteristics of the individual property. The Corporation acquired four branches of which one was owned property. Fair value adjustment will offset depreciation based on an estimated useful life of 40 years.

Core deposit intangible: The Corporation identified core deposit intangibles based on an income approach, which is based on the present value of cash flows that can be expected to be generated in the future. The core deposit intangible will be amortized based on the sum-of-the-years digit amortization method over the expected life of 10 years.

Operating lease right of use (“ROU”) assets and lease liabilities: The fair value of the lease ROU assets was measured at an amount equal to the lease liability established at the date of Acquisition and adjusted for favorable or unfavorable lease terms when compared with market terms on a lease-by-lease basis.

Deferred tax assets: The net deferred tax asset was adjusted for the tax effect of other purchase accounting fair value adjustments and expected net assets to be realized of the tax benefit of expected book and tax timing differences.

Other assets: Fair value of other assets and liabilities represent the amounts that are expected to be received or need paid out, with an adjustment for the carrying value of repossessed assets to their net realizable value.

Time deposits: The Corporation recorded an adjustment on time deposits to reflect the fair value of the time deposits assumed, which was determined using a discounted cash flow approach that utilized a discount rate equal to current market interest rates for instruments with similar terms and maturities. The fair value adjustment for time deposits will be amortized over the remaining maturities.

Supplemental Proforma Information

The following table presents supplemental proforma information for the three and six months ended June 30, 2026 and 2025 as if the Acquisition had occurred January 1, 2025. The unaudited proforma includes adjustments on loans acquired, amortization of core deposit intangibles arising from the transaction, depreciation expense on property acquired, lease expense on leases acquired, interest expense on deposits acquired and the related tax effects. The proforma information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates. In addition, the unaudited proforma information excluded merger-related expenses, and does not reflect management’s estimate of any revenue-enhancing opportunities or anticipated cost savings as a result of integration (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	$		$		$		$

Total revenues		33,757		33,295		66,941		65,359
Net income		6,905		6,078		12,821		10,635

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

4. Securities Available for Sale

The amortized cost, gross unrealized gains and losses, approximate fair value, and allowance for credit losses of investment securities held at June 30, 2026 and December 31, 2025, are as follows:

			Gross		Gross			Allowance
	Amortized		Unrealized		Unrealized			for Credit		Fair
	Cost		Gains		Losses			Losses		Value
	$		$		$			$		$
June 30, 2026
U.S. Treasuries		14,940		—		(803	)		—		14,137
U.S. government agencies		16,400		—		(439	)		—		15,961
U.S. agency mortgage-backed securities		33,408		76		(1,803	)		—		31,681
U.S. agency collateralized mortgage obligations		102,023		—		(2,547	)		—		99,476
Non-agency MBS/CMO		136,940		153		(3,128	)		—		133,965
Asset-backed securities		47,982		52		(396	)		—		47,638
Corporate bonds		44,963		21		(1,744	)		—		43,240
Obligations of states and political subdivisions		189,923		—		(17,344	)		—		172,579
Total securities available for sale		586,579		302		(28,204	)		—		558,677

December 31, 2025
U.S. Treasuries		14,927		—		(764	)		—		14,163
U.S. government agencies		16,400		—		(578	)		—		15,822
U.S. agency mortgage-backed securities		33,286		73		(1,746	)		—		31,613
U.S. agency collateralized mortgage obligations		107,592		433		(1,633	)		—		106,392
Non-agency MBS/CMO		144,887		536		(1,912	)		—		143,511
Asset-backed securities		51,306		52		(396	)		—		50,962
Corporate bonds		47,365		15		(2,245	)		—		45,135
Obligations of states and political subdivisions		191,430		—		(19,560	)		—		171,870
Total securities available for sale		607,193		1,109		(28,834	)		—		579,468

The amortized cost and fair value of debt securities available for sale at June 30, 2026, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions (in thousands).

	Amortized
	Cost		Fair Value
	$		$
Due in one year or less		27,648		27,282
Due after one year through five years		116,784		110,246
Due after five years through ten years		61,177		53,945
Due after ten years		60,617		54,444
U.S. agency mortgage-backed securities		33,408		31,681
U.S. agency collateralized mortgage obligations		102,023		99,476
Non-agency MBS/CMO		136,940		133,965
Asset-backed securities		47,982		47,638
Total debt securities		586,579		558,677

Securities available for sale with a par value of $154,225,000 and $127,026,000 at June 30, 2026 and December 31, 2025, respectively, were pledged or restricted for public funds, borrowings, or other purposes as required by law. The fair value of these pledged securities was $139,563,000 at June 30, 2026 and $117,817,000 at December 31, 2025.

Proceeds from active sales of debt securities available for sale with gains or losses, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification (in thousands).

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

	Three Months Ended June 30,					Six Months Ended June 30,
	2026		2025			2026		2025
	$		$			$		$
Proceeds from sales and calls with gains or losses		—		1,261			17,843		12,246
Gross realized gains		—		—			—		—
Gross realized losses		—		(2	)		—		(307	)

Information pertaining to securities with gross unrealized losses for which an allowance for credit losses has not been recorded at June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position (in thousands):

	Less than 12 months					More than 12 months					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	$		$			$		$			$		$
As of June 30, 2026
U.S. Treasuries		—		—			14,137		(803	)		14,137		(803	)
U.S. government agencies		—		—			15,961		(439	)		15,961		(439	)
U.S. agency mortgage-backed securities		1,973		(21	)		21,312		(1,782	)		23,285		(1,803	)
U.S. agency collateralized mortgage obligations		58,681		(619	)		40,244		(1,928	)		98,925		(2,547	)
Non-Agency MBS/CMO		74,656		(1,194	)		41,224		(1,934	)		115,880		(3,128	)
Asset-backed securities		7,940		(48	)		26,038		(348	)		33,978		(396	)
Corporate bonds		496		—			42,123		(1,744	)		42,619		(1,744	)
Obligations of states & political subdivisions		1,440		(10	)		171,139		(17,334	)		172,579		(17,344	)
Total unrealized losses on debt securities		145,186		(1,892	)		372,178		(26,312	)		517,364		(28,204	)

As of December 31, 2025
U.S. Treasuries		—		—			14,163		(764	)		14,163		(764	)
U.S. government agencies		—		—			15,822		(578	)		15,822		(578	)
U.S. agency mortgage-backed securities		—		—			23,117		(1,746	)		23,117		(1,746	)
U.S. agency collateralized mortgage obligations		8,963		(30	)		61,133		(1,603	)		70,096		(1,633	)
Non-Agency MBS/CMO		44,873		(326	)		46,260		(1,586	)		91,133		(1,912	)
Asset-backed securities		14,043		(110	)		21,686		(286	)		35,729		(396	)
Corporate bonds		—		—			44,620		(2,245	)		44,620		(2,245	)
Obligations of states & political subdivisions		—		—			171,840		(19,560	)		171,840		(19,560	)
Total unrealized losses on debt securities		67,879		(466	)		398,641		(28,368	)		466,520		(28,834	)

In the debt security portfolio, there are 293 and 288 positions carrying unrealized losses at June 30, 2026 and December 31, 2025.

The Corporation evaluates fixed income positions for an allowance for credit losses at least on a quarterly basis, and more frequently when economic and market concerns warrant such evaluation. The Corporation does not intend to sell the securities in an unrealized loss position and is unlikely to be required to sell these securities before a recovery of fair value, which may be maturity. The Corporation concluded that the decline in fair value of these securities was not indicative of a credit loss. No securities in the portfolio required an allowance for credit losses to be recorded in the first six months of 2026 or 2025.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

5. Equity Securities

The following table summarizes the amortized cost, cumulative gross realized gains and losses recognized in earnings, and fair value of equity securities held at June 30, 2026 and December 31, 2025 (in thousands):

			Gross		Gross
	Amortized		Realized		Realized			Fair
	Cost		Gains		Losses			Value
	$		$		$			$
June 30, 2026
CRA-qualified mutual funds		9,160		—		—			9,160
Bank stocks		389		—		(21	)		368
Total equity securities		9,549		—		(21	)		9,528

December 31, 2025
CRA-qualified mutual funds		8,960		—		—			8,960
Bank stocks		580		1		(60	)		521
Total equity securities		9,540		1		(60	)		9,481

The following table presents the net gains and losses on the Corporation’s equity investments recognized in earnings during the three and six months ended June 30, 2026 and 2025 (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
	$		$		$		$

Net gains realized on the sale of equity securities during the period		8		50		10		21
Net gains (losses) recognized on equity securities held at reporting date		7		—		37		1
Net gains (losses) recognized on equity securities during the period		15		50		47		22

6. Loans and Allowance for Credit Losses

The following table presents the Corporation’s loan portfolio by category of loans as of June 30, 2026 and December 31, 2025 (in thousands):

	June 30,			December 31,
	2026			2025
	$			$

Agriculture		324,215			317,957
Business Loans		468,640			394,558
Consumer		76,057			5,703
Home Equity		152,235			141,369
Non-Owner Occupied Commercial Real Estate		186,239			169,584
Residential Real Estate (a)		461,881			484,337

Gross loans prior to deferred costs		1,669,267			1,513,508

Deferred loan costs, net		2,201			2,237
Allowance for credit losses		(18,452	)		(16,886	)
Total net loans		1,653,016			1,498,859

(a)	Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $387,947 and $376,287 as of June 30, 2026 and December 31, 2025.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

Age Analysis of Past-Due Loans Receivable

The performance and credit quality of the loan portfolio is monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past-due status as of June 30, 2026 and December 31, 2025 (in thousands):

	June 30, 2026
			31-60		61-90		Greater Than
			Days		Days		90 Days		Total		Total
	Current		Past Due		Past Due		Past Due		Past Due		Loans

Agriculture	$	323,923	$	—	$	—	$	292	$	292	$	324,215
Business Loans		461,825		2,060		1,580		3,175		6,815		468,640
Consumer		75,203		284		348		222		854		76,057
Home Equity		151,715		309		—		211		520		152,235
Non-Owner Occupied CRE		186,175		—		—		64		64		186,239
Residential Real Estate		459,280		1,615		683		303		2,601		461,881
Total	$	1,658,121	$	4,268	$	2,611	$	4,267	$	11,146	$	1,669,267

	December 31, 2025
			31-60		61-90		Greater Than
			Days		Days		90 Days		Total		Total
	Current		Past Due		Past Due		Past Due		Past Due		Loans

Agriculture	$	316,116	$	50	$	212	$	1,579	$	1,841	$	317,957
Business Loans		388,462		3,449		2,620		27		6,096		394,558
Consumer		5,661		31		11		—		42		5,703
Home Equity		140,818		394		38		119		551		141,369
Non-Owner Occupied CRE		168,836		—		—		748		748		169,584
Residential Real Estate		482,830		842		65		600		1,507		484,337
Total	$	1,502,723	$	4,766	$	2,946	$	3,073	$	10,785	$	1,513,508

Nonperforming Loans

The following table presents the amortized cost basis of loans on nonaccrual status and loans past due

over 90 days still accruing interest as of June 30, 2026 and December 31, 2025, (in thousands):

	Nonaccrual		Nonaccrual				Loans Past
	with no		with		Total		Due Over 90 Days		Total
June 30, 2026	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming

Agriculture	$	1,200	$	343	$	1,543	$	—	$	1,543
Business Loans		3,985		11		3,996		—		3,996
Consumer Loans		308		157		465		—		465
Home Equity		465		—		465		—		465
Non-Owner Occupied CRE		235		—		235		—		235
Residential Real Estate		2,341		—		2,341		—		2,341
Total	$	8,534	$	511	$	9,045	$	—	$	9,045

	Nonaccrual		Nonaccrual				Loans Past
	with no		with		Total		Due Over 90 Days		Total
December 31, 2025	ACL		ACL		Nonaccrual		Still Accruing		Nonperforming

Agriculture	$	2,598	$	503	$	3,101	$	—	$	3,101
Business Loans		3,267		—		3,267		—		3,267
Consumer Loans		—		—		—		—		—
Home Equity		189		169		358		—		358
Non-Owner Occupied CRE		1,007		—		1,007		—		1,007
Residential Real Estate		1,308		295		1,603		—		1,603
Total	$	8,369	$	967	$	9,336	$	—	$	9,336

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

The following table presents, by class of loans, the collateral-dependent nonaccrual loans and type of collateral as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026
	Real Estate		Other		None		Total
Agriculture	$	1,151	$	392	$	—	$	1,543
Business Loans		3,365		631		—		3,996
Consumer Loans		—		465		—		465
Home Equity		465		—		—		465
Non-Owner Occupied CRE		235		—		—		235
Residential Real Estate		2,341		—		—		2,341
Total	$	7,557	$	1,488	$	—	$	9,045

December 31, 2025
	Real Estate		Other		None		Total
Agriculture	$	2,634	$	467	$	—	$	3,101
Business Loans		2,744		523		—		3,267
Consumer Loans		—		—		—		—
Home Equity		358		—		—		358
Non-Owner Occupied CRE		1,007		—		—		1,007
Residential Real Estate		1,603		—		—		1,603
Total	$	8,346	$	990	$	—	$	9,336

Credit Quality Indicators

The Corporation grades commercial credits differently than consumer credits. The following tables represent all of the Corporation’s commercial credit exposures by internally assigned grades as of June 30, 2026 and December 31, 2025. The grading analysis estimates the capability of the borrower to repay the contractual obligations under the loan agreements as scheduled or at all. The Corporation's internal commercial credit risk grading system is based on experiences with similarly graded loans.

The Corporation's internally assigned grades for commercial credits are as follows:

Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem, if not corrected.

Substandard – loans that have a well-defined weakness based on objective evidence and characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

Based on the most recent analysis performed, the following table presents the recorded investment by internal risk rating system for Commercial Credit exposures as of June 30, 2026 (in thousands):

													Revolving		Revolving
	Term Loans Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Converted
June 30, 2026	2026		2025		2024		2023		2022		Prior		Cost Basis		to Term		Total
Agriculture
Risk Rating
Pass	$	21,011	$	67,979	$	20,479	$	42,066	$	32,501	$	90,669	$	28,178	$	—	$	302,883
Special Mention		—		—		—		232		22		1,915		256		—		2,425
Substandard		—		3,222		987		2,006		1,418		8,718		2,556		—		18,907
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	21,011	$	71,201	$	21,466	$	44,304	$	33,941	$	101,302	$	30,990	$	—	$	324,215

Agriculture
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Business Loans
Risk Rating
Pass	$	72,192	$	78,172	$	45,875	$	49,234	$	65,425	$	101,860	$	44,369	$	—	$	457,127
Special Mention		—		—		—		—		630		1,457		123		—		2,210
Substandard		96		—		—		2,811		5,057		1,339		—		—		9,303
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	72,288	$	78,172	$	45,875	$	52,045	$	71,112	$	104,656	$	44,492	$	—	$	468,640

Business Loans
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	347	$	4	$	—	$	—	$	351

Non-Owner Occupied CRE
Risk Rating
Pass	$	19,706	$	33,128	$	7,487	$	31,090	$	37,675	$	43,806	$	10,604	$	—	$	183,496
Special Mention		—		—		—		—		—		1,965		—		—		1,965
Substandard		—		—		—		362		—		416		—		—		778
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	19,706	$	33,128	$	7,487	$	31,452	$	37,675	$	46,187	$	10,604	$	—	$	186,239

Non-Owner Occupied CRE
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total
Risk Rating
Pass	$	112,909	$	179,279	$	73,841	$	122,390	$	135,601	$	236,335	$	83,151	$	—	$	943,506
Special Mention		—		—		—		232		652		5,337		379		—		6,600
Substandard		96		3,222		987		5,179		6,475		10,473		2,556		—		28,988
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	113,005	$	182,501	$	74,828	$	127,801	$	142,728	$	252,145	$	86,086	$	—	$	979,094

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

Based on the most recent analysis performed, the following table presents the recorded investment by internal risk rating system for Commercial Credit exposures as of December 31, 2025 (in thousands):

													Revolving		Revolving
	Term Loans Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Converted
December 31, 2025	2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Agriculture
Risk Rating
Pass	$	57,538	$	24,033	$	41,437	$	31,048	$	39,917	$	61,578	$	29,209	$	—	$	284,760
Special Mention		496		495		3,677		2,891		4		3,001		896		—		11,460
Substandard		3,278		854		2,795		2,596		7,364		2,664		2,186		—		21,737
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	61,312	$	25,382	$	47,909	$	36,535	$	47,285	$	67,243	$	32,291	$	—	$	317,957

Agriculture
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Business Loans
Risk Rating
Pass	$	86,999	$	45,954	$	40,947	$	64,396	$	42,648	$	50,764	$	49,020	$	—	$	380,728
Special Mention		—		—		—		984		175		1,067		183		—		2,409
Substandard		—		—		2,815		6,978		87		461		1,080		—		11,421
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	86,999	$	45,954	$	43,762	$	72,358	$	42,910	$	52,292	$	50,283	$	—	$	394,558

Business Loans
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Non-Owner Occupied CRE
Risk Rating
Pass	$	26,560	$	10,839	$	33,024	$	36,021	$	26,833	$	28,860	$	3,487	$	—	$	165,624
Special Mention		—		—		—		—		1,321		688		—		—		2,009
Substandard		—		—		369		—		—		1,194		388		—		1,951
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	26,560	$	10,839	$	33,393	$	36,021	$	28,154	$	30,742	$	3,875	$	—	$	169,584

Non-Owner Occupied CRE
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total
Risk Rating
Pass	$	171,097	$	80,826	$	115,408	$	131,465	$	109,398	$	141,202	$	81,716	$	—	$	831,112
Special Mention		496		495		3,677		3,875		1,500		4,756		1,079		—		15,878
Substandard		3,278		854		5,979		9,574		7,451		4,319		3,654		—		35,109
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	174,871	$	82,175	$	125,064	$	144,914	$	118,349	$	150,277	$	86,449	$	—	$	882,099

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

For consumer loans, the Corporation evaluates credit quality based on whether the loan is considered performing or non-performing. Non-performing loans consist of those loans greater than 90 days delinquent and nonaccrual loans.

The following table presents the balances of consumer loans by classes of the loan portfolio based on payment performance as of June 30, 2026 (in thousands):

													Revolving		Revolving
	Term Loans Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Converted
	2026		2025		2024		2023		2022		Prior		Cost Basis		to Term		Total
Consumer
Payment Performance
Performing	$	2,564	$	28,481	$	19,352	$	11,695	$	6,191	$	5,687	$	1,622	$	—	$	75,592
Nonperforming		—		129		63		69		107		97		—		—		465
Total	$	2,564	$	28,610	$	19,415	$	11,764	$	6,298	$	5,784	$	1,622	$	—	$	76,057

Consumer
Current period gross charge-offs	$	—	$	—	$	29	$	5	$	1	$	14	$	—	$	—	$	49

Home equity
Payment Performance
Performing	$	356	$	2,089	$	995	$	4,356	$	9,853	$	1,930	$	131,516		675	$	151,770
Nonperforming		—		—		—		47		113		105		200		—		465
Total	$	356	$	2,089	$	995	$	4,403	$	9,966	$	2,035	$	131,716	$	675	$	152,235

Home equity
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential Real Estate
Payment Performance
Performing	$	13,350	$	27,193	$	34,562	$	88,212	$	124,495	$	171,728	$	—	$	—	$	459,540
Nonperforming		—		—		62		—		705		1,574		—		—		2,341
Total	$	13,350	$	27,193	$	34,624	$	88,212	$	125,200	$	173,302	$	—	$	—	$	461,881

Residential Real Estate
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total
Payment Performance
Performing	$	16,270	$	57,763	$	54,909	$	104,263	$	140,539	$	179,345	$	133,138	$	675	$	686,902
Nonperforming		—		129		125		116		925		1,776		200		—		3,271
Total	$	16,270	$	57,892	$	55,034	$	104,379	$	141,464	$	181,121	$	133,338	$	675	$	690,173

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

The following table presents the balances of consumer loans by classes of the loan portfolio based on payment performance as of December 31, 2025 (in thousands):

													Revolving		Revolving
	Term Loans Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Converted
	2025		2024		2023		2022		2021		Prior		Cost Basis		to Term		Total
Consumer
Payment Performance
Performing	$	2,757	$	901	$	337	$	122	$	14	$	—	$	1,572	$	—	$	5,703
Nonperforming		—		—		—		—		—		—		—		—		—
Total	$	2,757	$	901	$	337	$	122	$	14	$	—	$	1,572	$	—	$	5,703

Consumer
Current period gross charge-offs	$	7	$	31	$	15	$	6	$	—	$	10	$	—	$	—	$	69

Home equity										—
Payment Performance
Performing	$	2,480	$	1,518	$	5,327	$	11,796	$	755	$	1,237	$	117,665		233	$	141,011
Nonperforming		—		—		52		117		—		189		—		—		358
Total	$	2,480	$	1,518	$	5,379	$	11,913	$	755	$	1,426	$	117,665	$	233	$	141,369

Home equity
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	—	$	3

Residential Real Estate										—
Payment Performance
Performing	$	36,611	$	41,145	$	93,055	$	130,643	$	90,881	$	90,399	$	—	$	—	$	482,734
Nonperforming		—		—		—		569		530		504		—		—		1,603
Total	$	36,611	$	41,145	$	93,055	$	131,212	$	91,411	$	90,903	$	—	$	—	$	484,337

Residential Real Estate
Current period gross charge-offs	$	—	$	—	$	84	$	—	$	—	$	—	$	—	$	—	$	84

Total
Payment Performance
Performing	$	41,848	$	43,564	$	98,719	$	142,561	$	91,650	$	91,636	$	119,237	$	233	$	629,448
Nonperforming		—		—		52		686		530		693		—		—		1,961
Total	$	41,848	$	43,564	$	98,771	$	143,247	$	92,180	$	92,329	$	119,237	$	233	$	631,409

Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses (ACL) by portfolio segment for the three months ended June 30, 2026 and June 30, 2025 (in thousands):

	Beginning							Provisions			Ending
	Balance		Charge-offs			Recoveries		(Reductions)			Balance
June 30, 2026	$		$			$		$			$
Allowance for credit losses:
Agriculture		5,303		—			—		(101	)		5,202
Business Loans		3,259		(351	)		68		(244	)		2,732
Consumer Loans		1,604		(6	)		8		394			2,000
Home Equity		3,112		—			—		(15	)		3,097
Non-Owner Occupied CRE		831		—			—		24			855
Residential Real Estate		4,872		—			—		(306	)		4,566

Total	$	18,981	$	(357	)	$	76	$	(248	)	$	18,452

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

	Beginning							Provisions			Ending
	Balance		Charge-offs			Recoveries		(Reductions)			Balance
June 30, 2025	$		$			$		$			$
Allowance for credit losses:
Agriculture		3,470		—			24		665			4,159
Business Loans		3,207		—			1		(404	)		2,804
Consumer Loans		308		(7	)		7		16			324
Home Equity		2,721		—			—		184			2,905
Non-Owner Occupied CRE		1,031		—			—		216			1,247
Residential Real Estate		5,800		(84	)		—		(612	)		5,104

Total	$	16,537	$	(91	)	$	32	$	65		$	16,543

During the three months ended June 30, 2026, management released $248,000 in provision for credit losses related to loans and released $214,000 in provision expense for off-balance sheet credit exposure for a total provision reduction of $462,000. During the three months ended June 30, 2025, management added $65,000 to the provision for credit losses related to loans and $61,000 in provision expense for off-balance sheet credit exposure for a net provision of $126,000.

The following table presents the activity in the allowance for credit losses by portfolio segment for the six months ended June 30, 2026 and June 30, 2025 (in thousands):

			Initial Allowance
	Beginning		on Cecil PCD and PSL							Provisions			Ending
	Balance		Acquired Loans		Charge-offs			Recoveries		(Reductions)			Balance
June 30, 2026	$		$		$			$		$			$
Allowance for credit losses:
Agriculture		4,352		—		—			—		850			5,202
Business Loans		3,248		415		(351	)		98		(678	)		2,732
Consumer Loans		365		1,493		(49	)		10		181			2,000
Home Equity		2,785		79		—			—		233			3,097
Non-Owner Occupied CRE		1,342		—		—			—		(487	)		855
Residential Real Estate		4,794		11		—			—		(239	)		4,566

Total	$	16,886	$	1,998	$	(400	)	$	108	$	(140	)	$	18,452

	Beginning							Provisions			Ending
June 30, 2025	Balance		Charge-offs			Recoveries		(Reductions)			Balance
Allowance for credit losses:
Agriculture		3,303		—			25		831			4,159
Business Loans		3,234		—			3		(433	)		2,804
Consumer Loans		327		(34	)		23		8			324
Home Equity		2,644		(3	)		—		264			2,905
Non-Owner Occupied CRE		933		—			—		314			1,247
Residential Real Estate		5,681		(84	)		—		(493	)		5,104

Total	$	16,122	$	(121	)	$	51	$	491		$	16,543

During the six months ended June 30, 2026, management released $140,000 in provision expense for credit losses related to loans and released $344,000 of the provision for off-balance sheet credit exposure for a combined release of provision of $484,000. During the six months ended June 30, 2025, management added $491,000 to the provision for credit losses related to loans and $121,000 in provision expense for off-balance sheet credit exposure for a net provision of $612,000.

The ACL is maintained at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers historical loss experience, current conditions, and forecasts of future economic conditions as of the balance sheet date. The Corporation develops and documents a systematic ACL methodology based on the following portfolio segments: Agriculture, Business Loans, Consumer Loans, Home Equity, Non-Owner Occupied Commercial Real Estate (CRE), and Residential Real Estate. The following are key risks within each portfolio segment:

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

Agriculture – Loans made to individuals or operating companies within the Agricultural industry. These loans are generally secured by a first lien mortgage on agricultural land. The primary source of repayment is the income and assets of the borrower. The condition of the agriculture industry as well as the condition of the national economy is an important indicator of risk for this segment.

Business Loans —Loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. The primary source of repayment for these loans is cash flow from the operations of the company. The condition of the national economy is an important indicator of risk, but there are also more specific risks depending on the industry of the company. This segment also includes loans made to finance construction of buildings or other structures, as well as to finance the Acquisition and development of raw land for various purposes. While the risk of these loans is generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the national economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer.

Consumer - Loans made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes personal loans and lines of credit that may be secured or unsecured. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the national economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.

Home Equity– This segment generally includes lines of credit and term loans secured by the equity in the borrower’s residence. The primary source of repayment for these facilities is the income and assets of the borrower. The condition of the national economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the national housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt.

Non-Owner Occupied CRE - Loans secured by commercial purpose real estate for various purposes such as hotels, retail, multifamily and health care. The primary sources of repayment for these loans are the operations of the individual projects and global cash flows of the debtors. The condition of the national economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and the business prospects of the lessee.

Residential Real Estate—Loans secured by first liens on 1-4 family residential mortgages. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the national economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the national housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt.

The following table presents the balance in the allowance for credit losses and the recorded investment in loans receivable by portfolio segment based on the estimation method as of June 30, 2026:

	Agriculture		Business Loans		Consumer Loans		Home Equity		Non-Owner Occupied CRE		Residential Real Estate		Total
	$		$		$		$		$		$		$
Allowance for credit losses:
Ending balance: individually evaluated		178		—		39		—		—		—		217
Ending balance: collectively evaluated		5,024		2,732		1,961		3,097		855		4,566		18,235

Loans receivable:
Ending balance		324,215		468,640		76,057		152,235		186,239		461,881		1,669,267
Ending balance: individually evaluated		1,543		3,996		465		465		235		2,341		9,045
Ending balance: collectively evaluated		322,672		464,644		75,592		151,770		186,004		459,540		1,660,222

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

The following table presents the balance in the allowance for credit losses and the recorded investment in loans receivable by portfolio segment based on estimation method as of December 31, 2025:

	Agriculture		Business Loans		Consumer		Home Equity		Non-Owner Occupied CRE		Residential Real Estate		Total
	$		$		$		$		$		$		$
Allowance for credit losses:
Ending balance: individually evaluated		107		—		—		53		—		28		188
Ending balance: collectively evaluated		4,245		3,248		365		2,732		1,342		4,765		16,697

Loans receivable:
Ending balance		317,957		394,558		5,703		141,369		169,584		484,337		1,513,508
Ending balance: individually evaluated		3,101		3,267		—		358		1,007		1,603		9,336
Ending balance: collectively evaluated		314,856		391,292		5,703		141,010		168,577		482,734		1,504,172

Modifications to Borrowers Experiencing Financial Difficulty

The Corporation may grant a modification to borrowers in financial distress by providing a temporary reduction in interest rate, or an extension of a loan’s stated maturity date. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral.

The Corporation identifies loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower's financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future. There were no modifications of loans to borrowers experiencing financial difficulty that resulted in a concession for the quarter ended June 30, 2026 or for the quarter ended June 30, 2025.

7. Goodwill and Core Deposit Intangible Asset

At June 30, 2026, goodwill was $6,712,000 which was added through the Corporation’s Acquisition of Cecil. As permitted under GAAP, the Corporation has up to twelve months following the date of the Acquisition to finalize the fair values of the acquired assets and assumed liabilities related to the Acquisition of Cecil. During this measurement period, the Corporation may record subsequent adjustments for provisional amounts initially established. These subsequent adjustments, if any, may increase or decrease recorded goodwill.

	June 30,		December 31,
	2026		2025
	$		$

Balance, beginning of period		—		—
Acquired goodwill		6,712		—
Balance, end of period		6,712		—

Goodwill is not amortized but is reviewed for potential impairment on at least an annual basis, with testing between annual tests if an event occurs or circumstances change that could potentially reduce the fair value of a reporting unit. The Corporation acquired a core deposit intangible asset of $2,746,000 in the Acquisition of Cecil. The core deposit intangible asset is being amortized based on the sum-of-the-year digits method over an expected life of 10 years. The following table presents changes in the core deposit intangible during the three and six months ended June 30, 2026 and 2025 (in thousands).

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2026			2025		2026			2025
	$			$		$			$

Balance, beginning of period		2,663			—		—			—
Acquired core deposit intangible		—			—		2,746			—
Amortization		(125	)		—		(208	)		—
Balance, end of period		2,538			—		2,538			—

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

The following table presents future estimated aggregated amortization expense at June 30, 2026:

	$
Year Ending:
December 31, 2026 (6 months remaining)		250
December 31, 2027		453
December 31, 2028		404
December 31, 2029		354
December 31, 2030		304
December 31, 2031		254
Thereafter		519
		2,538

8. Income Taxes

The Corporation files income tax returns in the U.S. federal jurisdiction, the Commonwealth of Pennsylvania, and the States of Maryland, Florida and New Jersey. Income taxes paid for federal were $1,450,000 for the quarter and six months ended June 30, 2026 and $2,420,000 for the quarter and six months ended June 30, 2025. No state income taxes were paid for the three months or six months ended June 30, 2026 and 2025.

The ability to realize the benefit of deferred tax assets is dependent upon a number of factors, including the generation of future taxable income, the ability to carry back losses to recover taxes paid in previous years, the ability to offset capital losses with capital gains, the reversal of deferred tax liabilities, and certain tax planning strategies. Realization of deferred tax assets associated with net operating loss (NOL) carryforwards is dependent upon generating sufficient taxable income prior to their expiration. Further, in the case of acquisitions, it is impacted by Internal Revenue Code Section 382, which limits the use of NOLs to an annual amount based on the company’s stock immediately before the ownership change, multiplied by the applicable federal long-term tax interest rate.

At June 30, 2026, the Corporation had federal NOL carryforwards of approximately $60,655,000, with certain amounts that expire at various times from 2033 to 2037. The Corporation also had state NOL carryforwards of $57,540,000, with certain amounts that expire at various times from 2034 to 2037. The valuation allowance on net deferred assets results in the NOL carryforwards being carried at an amount that management expects to realize.

U.S. generally accepted accounting principles prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met.

There is currently no liability for uncertain tax positions and are no known unrecognized tax benefits. The Corporation recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Income. With few exceptions, the Corporation is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before 2022.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

Income tax expense for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2026			2025		2026			2025
	$			$		$			$
Current:
Federal		704			1,101		778			2,022
State		130			4		135			4
Total current		834			1,105		913			2,026
Deferred tax expense:
Federal		578			275		1,488			336
State		(77	)		—		(44	)		—
Total deferred		501			275		1,444			336
Income tax expense		1,335			1,380		2,357			2,362

Components of the Corporation’s net deferred tax position at June 30, 2026 and December 31, 2025 are as follows (in thousands):

	2026			2025
	$			$

Deferred tax assets:
Allowance for credit losses		4,043			3,546
Allowance for off-balance sheet extensions of credit		190			284
Interest on nonaccrual loans		241			189
Purchase accounting - loans		1,103			—
Operating lease liability		589			524
Net operating loss carryforwards		13,078			—
Net unrealized losses on securities available for sale		6,069			5,823
Net unrealized losses on derivatives		—			62
Other		90			53
Total deferred tax assets		25,403			10,481

Deferred tax liabilities:
Premises and equipment		(2,087	)		(2,104	)
Right of use asset		(579	)		(516	)
Mortgage servicing rights		(779	)		(671	)
Discount on investment securities		(1,755	)		(1,326	)
Purchase accounting - core deposit intangible		(569	)		—
Purchase accounting - time deposits		(38	)		—
Net unrealized gains on derivatives		(548	)		—
Other		(12	)		(20	)
Total deferred tax liabilities		(6,367	)		(4,637	)
Net deferred tax assets before valuation allowance		19,036			5,844
Valuation allowance		(7,028	)		—
Net deferred tax assets		12,008			5,844

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

9. Deposits

Deposits by major classifications are summarized as follows at June 30, 2026 and December 31, 2025 (in thousands):

	2026		2025
	$		$

Non-interest bearing demand		706,839		649,090
Interest-bearing demand		396,075		375,938
Money market deposit accounts		177,819		162,715
Savings accounts		311,547		283,207
Time deposits $250,000 or less		342,930		333,522
Time deposits over $250,000		81,758		68,889
Total deposits		2,016,968		1,873,361

At June 30, 2026, the scheduled maturities of time deposits are as follows (in thousands):

2026 (6 months remaining)			284,247
2027			132,764
2028			2,649
2029			2,207
2030			1,946
2031			875
Total			424,688

At June 30, 2026, the Bank held $3,749,000 in brokered time deposits compared to $68,042,000 as of December 31, 2025. The brokered time deposits may be called by the Corporation with no penalty, other than the acceleration of the recognition of the premium recorded on them, which totaled $1,000 at June 30, 2026, and $330,000 at December 31, 2025.

10. Accumulated Other Comprehensive Loss

The activity in accumulated other comprehensive loss for the three and six months ended June 30, 2026 and 2025 is as follows (in thousands):

	Accumulated Other Comprehensive Loss
	Unrealized
	Gains (Losses)
	on Securities			Unrealized
	Available-for-Sale			Gains (Losses)
	net of			on Cash Flow
	Fair Value Hedge (1) (2)			Hedges (2)			Total
	$			$			$

Balance at April 1, 2026		(22,999	)		(52	)		(23,051	)
Other comprehensive (losses) gains before reclassifications		3,163			(6	)		3,157
Amount reclassified from accumulated other comprehensive loss		9			23			32
Period change		3,172			17			3,189
Balance at June 30, 2026		(19,827	)		(35	)		(19,862	)

Balance at April 1, 2025		(33,208	)		(77	)		(33,285	)
Other comprehensive gains (losses) before reclassifications		(628	)		7			(621	)
Amount reclassified from accumulated other comprehensive loss		(250	)		(61	)		(311	)
Period change		(878	)		(54	)		(932	)
Balance at June 30, 2025		(34,086	)		(131	)		(34,217	)

Balance at January 1, 2026		(21,974	)		(163	)		(22,137	)
Adjustment for change in blended tax rate		166			—			166
Other comprehensive (losses) gains before reclassifications		1,978			86			2,064
Amount reclassified from accumulated other comprehensive loss		3			42			45
Period change		2,147			128			2,275
Balance at June 30, 2026		(19,827	)		(35	)		(19,862	)

Balance at January 1, 2025		(34,304	)		161			(34,143	)
Other comprehensive gains (losses) before reclassifications		545			(170	)		375
Amount reclassified from accumulated other comprehensive loss gains (losses)		(327	)		(122	)		(449	)
Period change		218			(292	)		(74	)
Balance at June 30, 2025		(34,086	)		(131	)		(34,217	)

(1) Amounts include fair value hedge.

(2) Amounts are net of tax, at the federal income tax rate of 21.75% for 2026 and 21% for 2025.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

11. Derivatives and Hedging Activities

The Corporation utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and other terms of the individual interest rate swap agreements.

Cash Flow Hedges: Two interest rate swaps with notional amounts totaling $60,000,000 at June 30, 2026 and December 31, 2025 were designated as cash flow hedges of certain short-term FHLB advances and were determined to be effective for the periods presented. The Corporation expects the hedges to remain effective during the remaining terms of the swaps. These cash flow hedges are pay-fixed rate hedges for the purpose of hedging variable cash flows associated with the Corporation’s short-term borrowings.

Fair Value Hedges: Thirteen interest rate swaps with notional amounts totaling $166,744,000 and $175,775,000 at June 30, 2026 and December 31, 2025 were designated as portfolio hedges of individual fixed rate mortgage-backed securities included in securities available for sale. The hedges were determined to be effective for the periods presented. These fair value hedges are pay-fixed rate hedges designed as a hedge of the exposure to changes in the fair value of securities available for sale.

The following table summarizes the notional amounts and fair value of the Corporation’s derivative instruments at June 30, 2026 and December 31, 2025 (in thousands):

	As of June 30, 2026						As of December 31. 2025
	Notional / Contract		Asset		Liability		Notional / Contract		Asset		Liability
Line Item in the Balance Sheet Which	Amount		Fair Value (a)		Fair Value (b)		Amount		Fair Value (a)		Fair Value (b)
the Hedged Item is Included	$		$		$		$		$		$
Derivatives used for hedging instruments:
Interest rate swap contracts :
Securities available for sale (fair value hedges)		166,744		2,549		—		70,081		811		—
Securities available for sale (fair value hedges)		—		—		—		105,694		—		851
Short-term borrowings (cash flow hedges)		60,000		—		13		60,000		—		207
Total derivatives designated for hedging		226,744		2,549		13		235,775		811		1,058

(a) Included in Other assets on the Consolidated Balance Sheet.

(b) Included in Other liabilities on the Consolidated Balance Sheet.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

The following table is a summary of components for interest rate swaps designed as hedging instruments at June 30, 2026 and December 31, 2025 (in thousands):

	Weighted Average Pay Rate		Weighted Average Receive Rate		Weighted Average Maturity (In Years)

June 30, 2026
Cash flow hedge designation
Interest rate swaps-short term borrowings		3.84%		3.63%		0.4
Fair value hedge designation
Interest rate swaps - available for sale securities		3.65%		3.67%		12.1

December 31, 2025
Cash flow hedge designation
Interest rate swaps-short term borrowings		3.84%		3.98%		0.9
Fair value hedge designation
Interest rate swaps - available for sale securities		3.65%		3.82%		12.6

The following table summarizes the effect of the Corporation’s derivative financial instruments on OCI and net income for the three and six months ended June 30, 2026 and 2025 (in thousands):

	Three Months ended June 30,						Six Months ended June 30,
	2026			2025			2026			2025			Location of Gains (losses) Recognized
	$			$			$			$			from AOCI into Income

Derivatives Used for hedging instruments:
Fair value hedges		(11	)		318			(4	)		653		Interest income - securities
Cash flow hedges		31			(77	)		55			(154	)	Interest expense - short term borrowings

	2026		2025		2026			2025		Location of Gains (losses) Recognized
	$		$		$			$		in Income
Derivatives Used for hedging instruments:
Fair value hedges		0		26		(33	)		27	Interest income - securities

The amounts recognized from accumulated other comprehensive income into condensed statement of income represent the amount of cash settlements between the Corporation and the counterparty. The amount recognized directly as interest income on fair value hedges relates to the adjustments required for periodic remeasurements.

The Corporation has agreements with its derivative counterparty that contains a provision where, if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender on its cash flow hedges, then the Corporation could also be declared in default on its derivative obligations. In addition, the Corporation also has agreements with its derivative counterparty that contains a provision where, if the Corporation fails to maintain its status as a well / adequately-capitalized institution, then the counterparty could terminate the derivative positions and the Corporation would be required to settle its obligations under the agreements. As of June 30, 2026, the Corporation had $2,000,000 held by its counterparty as collateral for its derivative agreements.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

12. Earnings Per Share

The following table presents earnings per share for the three and six months ended June 30, 2026 and 2025 (dollars in thousands, except share data):

	2026		2025		2026		2025

Net income ($)		5,704		5,810		9,728		10,126
Weighted average shares outstanding - basic		5,704,369		5,670,021		5,698,974		5,663,060
Diluted effect of share-based compensation		1,647		3,013		1,441		3,263
Weighted average shares outstanding - diluted		5,706,016		5,673,034		5,700,415		5,666,323

Per share information:
Basic earnings per share ($)		1.00		1.02		1.71		1.79
Diluted earnings per share ($)		1.00		1.02		1.71		1.79

13. Fair Value Presentation

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Corporation.

The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels as follows:

Level 1 – quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access at the measurement date.

Level 2 – significant other observable inputs other than Level 1 prices such as prices for similar assets and liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or other inputs that are observable or can be corroborated by observable market data.

Level 3 – at least one significant unobservable input that reflects a Corporation's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The Corporation used the following methods and significant assumptions to estimate fair value for instruments measured on a recurring basis:

Investment securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quote prices are not available, fair values are calculated based on market prices of similar level securities (Level 2), using matrix pricing. Matrix pricing is a technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quotes prices (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The Corporation has no securities that are Level 3.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

Derivatives and hedging activities: The fair value of derivatives are determined using models that incorporate readily observable market data into a market standard methodology. This methodology nets the discounted future cash receipts and the discounted expected cash payments. The discounted variable cash receipts and payments are based on expectations of future interest rates derived from observable market interest rate curves. These assets and liabilities are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements.

The following table provides the fair value for assets and liabilities required to be measured and reported at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, and level within the fair value hierarchy (in thousands):

	Level 1		Level 2		Level 3		Total
	$		$		$		$
June 30, 2026:
Assets
U.S. Treasuries		14,137		—		—		14,137
U.S. government agencies		—		15,961		—		15,961
U.S. agency mortgage-backed securities		—		31,681		—		31,681
U.S. agency collateralized mortgage obligations		—		99,476		—		99,476
Non-agency MBS/CMO		—		133,965		—		133,965
Asset-backed securities		—		47,638		—		47,638
Corporate bonds		—		43,240		—		43,240
Obligations of states & political subdivisions		—		172,579		—		172,579
Marketable equity securities		9,528		—		—		9,528

Total securities		23,665		544,540		—		568,205
Derivatives and hedging activities		—		2,549		—		2,549

Liabilities
Derivatives and hedging activities		—		13		—		13

	Level 1		Level 2		Level 3		Total
	$		$		$		$

December 31, 2025:
Assets
U.S. Treasuries		14,163		—		—		14,163
U.S. government agencies		—		15,822		—		15,822
U.S. agency mortgage-backed securities		—		31,613		—		31,613
U. S. agency collateralized mortgage obligations		—		106,392		—		106,392
Non-agency MBS/CMO		—		143,511		—		143,511
Asset-backed securities		—		50,962		—		50,962
Corporate bonds		—		45,135		—		45,135
Obligations of states and political subdivisions		—		171,870		—		171,870
Marketable equity securities		9,481		—		—		9,481
Total securities		23,644		565,305		—		588,949
Derivatives and hedging activities		—		811		—		811

Liabilities
Derivatives and hedging activities		—		1,058		—		1,058

Individually Evaluated Loans: Loans individually evaluated for current expected credit losses include nonaccrual loans and other loans that do not share similar risk characteristics to loans in ACL loan pools, which have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the consolidated statements of operations. The measurement of loss associated with loans evaluated individually for all loan classes was based on either the observable market price of the loan, the fair value of the collateral or discounted cash flows. For collateral-dependent loans, fair value was measured based on the value of the collateral securing the loan, less estimated costs to sell. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The value of the real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Corporation using observable market data. However, if the collateral is a house or building in the process of construction or if management adjusts the appraisal value, then the fair value is considered Level 3. The value of business equipment and other assets is based upon an outside appraisal, if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

Mortgage Servicing Rights (MSR): MSRs are evaluated for impairment by comparing the carrying value to the fair value, which is determined through a discounted cash flow (DCF) valuation. To the extent the amortized cost of the MSRs exceeds their estimated fair values, a valuation allowance is established for such impairment. Fair value adjustments on the MSRs only occurs if there is an impairment charge. At June 30, 2026, the fair value of the MSRs was $3,904,000, which exceeded the carrying value of $2,815,000. At December 31, 2025, the fair value of the MSRs was $3,104,000, which exceeded the carrying value of $2,597,000. There was no valuation allowance at June 30, 2026 or December 31, 2025.

The following table provides the fair value for each class of assets to be measured and reported at fair value on a nonrecurring basis at June 30, 2026 and December 31, 2025, by level within the fair value hierarchy (in thousands):

	Level 1		Level 2		Level 3		Total
	$		$		$		$
June 30, 2026
Assets:
Individually analyzed loans		—		—		8,828		8,828
Total		—		—		8,828		8,828

December 31, 2025
Assets:
Individually analyzed loans		—		—		9,148		9,148
Total		—		—		9,148		9,148

The Corporation had a total of $9,045,000 of individually analyzed loans as of June 30, 2026, with $217,000 of specific allocation against these loans and $9,336,000 of individually analyzed loans as of December 31, 2025, with $188,000 of specific allocation against these loans. The value of individually analyzed loans is generally determined through independent appraisals of the underlying collateral.

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level 3 inputs to determine fair value:

	Fair Value	Valuation	Unobservable	Range
	Estimate	Techniques	Input	(Weighted Avg)

June 30, 2026
Individually analyzed loans	8,828	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to -20%
			Liquidation expenses (2)	0% to -10%


December 31, 2025
Individually analyzed loans	9,148	Appraisal of collateral (1)	Appraisal adjustments (2)	0% to -20%
			Liquidation expenses (2)	0% to -10%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

The following tables provide the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 (in thousands):

					Quoted Prices in
					Active Markets		Significant Other		Significant
					for Identical		Observable		Unobservable
	Carrying				Assets		Inputs		Inputs
	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
	$		$		$		$		$


Cash and cash equivalents		37,145		37,145		37,145		—		—
Regulatory stock		11,559		11,559		11,559		—		—
Loans held for sale		2,038		2,038		2,038		—		—
Loans, net of allowance		1,653,016		1,633,610		—		—		1,633,610
Accrued interest receivable		9,157		9,157		50		3,189		5,918


Demand deposits		706,839		706,839		706,839		—		—
Interest-bearing demand deposits		396,076		396,076		396,076		—		—
Money market deposit accounts		177,819		177,819		177,819		—		—
Savings accounts		311,547		311,547		311,547		—		—
Time deposits		424,688		417,723		—		—		417,723
Total deposits		2,016,969		2,010,004		1,592,281		—		417,723
Short-term debt		76,000		76,000		76,000		—		—
Long-term debt		53,007		53,003		—		—		53,003
Subordinated debt		61,535		60,489		—		—		60,489
Accrued interest payable		2,406		2,406		349		30		2,027

December 31, 2025
Financial Assets:
Cash and cash equivalents		60,573		60,573		60,573		—		—
Regulatory stock		10,870		10,870		10,870		—		—
Loans held for sale		2,588		2,588		2,588		—		—
Loans, net of allowance		1,498,859		1,493,899		—		—		1,493,899
Accrued interest receivable		8,424		8,424		59		3,306		5,059

Financial Liabilities:
Demand deposits		649,090		649,090		649,090		—		—
Interest-bearing demand deposits		375,938		375,938		375,938		—		—
Money market deposit accounts		162,715		162,715		162,715		—		—
Savings accounts		283,207		283,207		283,207		—		—
Time deposits		402,411		401,917		—		—		401,917
Total deposits		1,873,361		1,872,867		1,470,950		—		401,917
Short-term debt		60,000		60,000		60,000		—		—
Long-term debt		67,838		68,507		—		—		68,507
Subordinated debt		81,413		80,311		—		—		80,311
Accrued interest payable		2,595		2,595		444		6		2,145

14. Segment Reporting

The Corporation’s reportable segment is determined by the Chief Executive Officer, who is the designated chief decision maker (“CDM”), based upon information provided by the Corporation’s products and services offered, primarily banking operations. The segment is also distinguished by the level of information provided to the CDM, who uses such information to review performance of various components of the business, including branches and service offerings, which are then aggregated as operating performance, products, services, and customers are similar and dependent on each other.

ENB FINANCIAL CORP
Notes to the Unaudited Consolidated Interim Financial Statements

The CDM will evaluate the financial performance of the Corporation’s business components such as evaluating revenue streams, significant expenses, and budget-to-actual results in assessing the Corporation’s segment and in the determination of allocating resources. The CDM uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate profitability measurements. The CDM uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring budget-to-actual results are used in performance and in establishing compensation. Loans, investments, deposits, and wealth management provide the revenues in the banking operation. Interest expense, provision for credit losses, payroll, occupancy, and data processing charges provide significant expenses in the banking operation. All operations are in Lancaster, Lebanon and Berks counties, Pennsylvania, and Cecil County, Maryland.

15. Recently Issued Accounting Standards

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures. This ASU requires disclosure in the notes to financial statements of specified information about certain costs and expenses. Specific disclosures are required for (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas producing activities. The amendments in this Update do not change or remove current expense disclosure requirements. However, the amendments affect where this information appears in the notes to financial statements because entities are required to include certain current disclosures in the same tabular format disclosure as the other disaggregation requirements in the amendments. The amendments in ASU 2024-03 apply only to public business entities and are effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Corporation is currently evaluating the impact of this new guidance on its financial statements.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815), which amends certain aspects of the hedge accounting guidance in ASC 815 to more closely align hedge accounting with the economics of an entity’s risk management activities. The amendments, among other things, provide more flexibility for cash flow hedges and hedging of raw materials and other nonfinancial assets, as well as simplify hedge accounting for flexible debt and foreign currency debt. ASU 2025-09 should be applied prospectively for public business entities for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual reporting periods. Early adoption is permitted. This Update is not expected to have a significant impact on the Corporation’s financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, to clarify interim disclosure requirements, the form and content of interim financial statements, and when ASC Topic 270 applies. The amendments in the ASU provide a list of specific interim disclosures that are required by generally accepted accounting principles (GAAP), which, together with the disclosure principle, represent the complete population of required disclosures in interim reporting periods. The intent of the disclosure principle is to help entities determine whether any disclosures not specified in Topic 270 should be provided in interim reporting periods. ASU 2025-11 may be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements for public business entities for interim periods in fiscal years beginning after December 15, 2027. This Update is not expected to have a significant impact on the Corporation’s financial statements.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements, to address 33 issues that amend the Codification to (1) clarify, (2) correct errors, or (3) make minor improvements that affect a wide variety of Topics in the Codification and apply to all reporting entities within the scope of the affected accounting guidance. The amendments make the Codification easier to understand and apply. The amendments in this Update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The Corporation is currently evaluating the impact of this new guidance on its financial statements.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis represents management’s view of the financial condition and results of operations of the Corporation. This discussion and analysis should be read in conjunction with the consolidated financial statements and other financial schedules included in this quarterly report, and in conjunction with Corporation’s Annual Report on Form 10-K. The financial condition and results of operations presented are not indicative of future performance.

Forward-Looking Statements

The U.S. Private Securities Litigation Reform Act of 1995 provides safe harbor in regard to the inclusion of forward-looking statements in this document and documents incorporated by reference. Forward-looking statements pertain to possible or assumed future results that are made using current information. These forward-looking statements are generally identified when terms such as “believe,” “estimate,” “anticipate,” “expect,” “project,” “forecast,” and other similar wordings are used. The readers of this report should take into consideration that these forward-looking statements represent management’s expectations as to future forecasts of financial performance, or the likelihood that certain events will or will not occur. Due to the very nature of estimates or predictions, these forward-looking statements should not be construed to be indicative of actual future results. Additionally, management may change estimates of future performance, or the likelihood of future events, as additional information is obtained. This document may also address targets, guidelines, or strategic goals that management is striving to reach but may not be indicative of actual results.

Readers should note that many factors affect this forward-looking information, some of which are discussed elsewhere in this document and in the documents that are incorporated by reference into this document. These factors include, but are not limited to, the following:

General local and national economic conditions, including inflation and concerns about liquidity

Monetary and interest rate policies of the Federal Reserve Board

Changes in deposit flows, loan demand, or real estate and investment securities values

Effects of weak market conditions, specifically the effect on loan customers to repay loans

Possible impacts of the capital and liquidity requirements of Basel III standards and other regulatory pronouncements

Effects of short- and long-term federal budget and tax negotiations and their effects on economic and business conditions

Effects of the failure of the Federal government to reach agreement to raise the debt ceiling and the negative effects on economic or business conditions as a result

Political changes and their impact on new laws and regulations

Effects of war, acts of terrorism, military actions, and international and domestic instabilities

Competitive forces and how it may impact our community banking strategies

Changes in accounting principles, policies, or guidelines as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standards setters

Ineffective business strategy due to current or future market and competitive conditions

Diversion of management’s attention from ongoing business operations and opportunities

Management’s ability to manage credit risk, liquidity risk, interest rate risk, and fair value risk

Operation, legal, and reputation risk

The risk that our analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful

The impact of new laws and regulations concerning taxes, banking, securities and insurance and their application with which the Corporation and its subsidiaries must comply

Potential impacts from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses

Effects of economic conditions particularly with regard to the effects of any pandemic, epidemic, or health-related crisis and government and business responses thereto, specifically the effect on loan customers to repay loans

Effects of acquisition and integration of acquired businesses

ENB FINANCIAL CORP
Management’s Discussion and Analysis

Readers should be aware that if any of the above factors change significantly, the statements regarding future performance could also change materially. The safe harbor provision provides that the Corporation is not required to publicly update or revise forward-looking statements to reflect events or circumstances that arise after the date of this report. Readers should review any changes in risk factors in documents filed by the Corporation periodically with the Securities and Exchange Commission, including Item 1A of Part II of this Quarterly Report on Form 10-Q, Annual Reports on Form 10-K, and Current Reports on Form 8-K.

Results of Operations

Overview

The Corporation recorded net income of $5,704,000 for the three-month period ended June 30, 2026, a $106,000, or 1.8% decrease over the three months ended June 30, 2025. Net income for the six-month period was $9,728,000, a $398,000, or 3.9% decrease over earnings in the six-month period ended June 30, 2025. Basic and diluted earnings per share of common stock were $1.00 for the three months ended June 30, 2026, compared to $1.02 for the same period in 2025, and for the year-to-date period, basic and diluted earnings per share of common stock were $1.71, compared to $1.79 in 2025, or a 4.5% decrease over the comparable six-month period in the previous year.

On February 1, 2026, the Corporation completed its Acquisition of Cecil Bancorp, Inc. (“Cecil”) and its wholly-owned subsidiary, Cecil Bank, which impacted the Corporation’s balance sheet and results of operations for the three and six months ended June 30, 2026 in comparison to the prior year, as it included five months of their activities. The fair value of 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, see separate “Supplemental Reporting of Non-GAAP Measures”) 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. See supplemental discussion of non-GAAP financial measures.

The Corporation’s net interest income (NII) increased by $3,124,000, or 17.7%, and $5,276,000, or 15.3%, for the three and six months ended June 30, 2026, compared to the same periods in 2025. Interest and fees 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, compared to the same periods in 2025, and was favorably impacted by the addition of Cecil’s loans. Interest income on securities available for sale 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 lower rates earned on securities as well as lower average balances. Interest expense on deposits declined $316,000, or 4.6%, and $820,000, or 5.9%, for the three and six months ended June 30, 2026 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 certain brokered deposits. Interest expense on borrowings increased by $512,000, or 27.3%, and $1,108,000, or 29.5%, for the three and six months ended June 30, 2026, compared to the same periods in 2025, principally due to higher levels of subordinated debt, with newly issued subordinated debt to support the Cecil acquisition at a higher rate than previous issuances.

The Corporation recorded a release of provision for credit losses of $462,000 in the second quarter of 2026, compared to provision expense of $126,000 for the second quarter of 2025. For the year-to-date period, provision release was $484,000, compared to provision expense of $612,000 for the six months ended June 30, 2025. The provision release recorded in 2026 was primarily related to 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 as a percentage of total loans was 1.10% as of June 30, 2026, 1.11% at December 31, 2025, and 1.13% as of June 30, 2025.

Other 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. The primary reasons for the increases were related to increased trust and investment services income and increased service fees due to additional customers and accounts from the Cecil acquisition. In addition, 2025’s year-to-date income was negatively impacted by losses on security transactions due to strategic sales of investment securities to fund higher yielding loan growth.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

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. The primary driver of higher operating expenses were merger and conversion costs $1,561,000 and $3,718,000 for the three and six months ended June 30, 2026, including severance payments, conversion of Cecil’s operating systems to a unified system, and professional fees to complete the acquisition. Operating expenses also increased due to salary and benefit costs from additional staff including those for the Bank’s four new branches, annual merit increases and higher health insurance costs. Several other categories of expenses increased from the prior year, including occupancy and equipment, computer software and data processing costs, and professional services, with the Cecil acquisition contributing to the increases.

The financial services industry uses two primary performance measurements to gauge performance: return on average assets (ROA) and return on average equity (ROE). ROA measures how efficiently a bank generates income based on the amount of assets or size of a company. ROE measures the efficiency of a company in generating income based on the amount of equity or capital utilized.

Key Ratios	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025

Return on Average Assets		0.95%		1.06%		0.83%		0.93%
Return on Average Equity		13.73%		17.24%		11.85%		15.15%

The lower performance ratios for return on average assets and return on average equity were impacted by the $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.

The results of the Corporation’s operations are best explained by addressing, in further detail, the five major sections of the income statement, which are as follows:

Net interest income

Provision for credit losses

Other income

Operating expenses

Provision for income taxes

The following discussion analyzes each of these five components.

Net Interest Income (NII)

NII represents the largest portion of the Corporation’s operating income, which consists of NII and non-interest income, and represents 83% - 84% of the total for all periods presented in 2026 and 2025. The overall performance of the Corporation is highly dependent on interest rates and the changes in NII since it comprises such a significant portion of operating income.

The following table shows a summary analysis of NII on a fully taxable equivalent (FTE) basis. For analytical purposes and throughout this discussion, yields, rates, and measurements such as NII, net interest spread, and net yield on interest earning assets are presented on an FTE basis, assuming a 21% tax rate. The FTE NII shown in both tables below will exceed the NII reported on the consolidated statements of income which is not presented on an FTE basis. The amount of FTE adjustment totaled $141,000 and $284,000 for the three and six months ended June 30, 2026, compared to $106,000 and $213,000 for the same periods in 2025.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
	$		$		$		$
Total interest income		29,736		26,416		57,545		51,981
Total interest expense		8,955		8,759		17,835		17,547

Net interest income		20,781		17,657		39,710		34,434
Tax equivalent adjustment		141		106		284		213

Net interest income (fully taxable equivalent)		20,922		17,763		39,994		34,647

NII is the difference between interest income earned on assets and interest expense incurred on liabilities. Accordingly, two factors affect NII:

The rates earned on interest-earning assets and paid on interest-bearing liabilities

The average balance of interest-earning assets and interest-bearing liabilities

In 2026, the interest rate environment was lower than in the prior year, with the average federal funds rate being approximately 70 basis points lower in 2026 compared to 2025. However, the longer end of the yield curve has seen increases recently, with the average 7-year U.S. Treasury rate increasing from 4.15% for the three months ended June 30, 2025 to 4.25% for the same period in 2026, and 3.97% in the first quarter of 2026.

NII on a fully taxable equivalent basis increased $3,159,000, from $17,763,000 for the three months ended June 30, 2025 to $20,922,000 for the same period in 2026. On a year-to-date basis, NII on fully taxable equivalent basis increased $5,347,000 and totaled $39,994,000 for the six months ended June 30, 2026 compared to the same period in the prior year. The increases in 2026 was the combination of higher average balances and higher rates earned on loans, combined with lower rates paid on interest-bearing liabilities.

During the three and six months ended June 30, 2026, interest income on a taxable equivalent basis increased by $3,355,000 and $5,635,000, as both average balances and rates earned increased on loans. The Acquisition of Cecil and a shift in asset mix to greater percentage of loans to total interest earning assets contributed to the increase in interest income. Contributing to the increase in the yields earned on loans was continued movement from lower yielding residential mortgages to higher yielding business and agricultural loans. Interest expense increased $196,000 and $288,000 for the three and six months ended June 30, 2026 due primarily to higher interest-bearing liabilities balances, offset by lower average rates paid. The acquisition of Cecil contributed to the growth in average deposits, while total borrowings increased as a result of funding of the purchase price of Cecil, coupled with funding needed for asset growth.

As a result of the higher interest earning assets, and shift within the portfolio, combined with discipline managing the cost of funds, the Corporation’s net interest margin increased to 3.60% and 3.49% for the three and six months ended June 30, 2026, compared to 3.29% and 3.24% for the same periods in 2025.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

The following table provides an analysis of year-to-date changes in NII on an FTE basis by distinguishing the changes that were a result of average balance fluctuations and those that were a result of interest rate fluctuations (dollars in thousands):

	Three Months Ended June 30,									Six Months Ended June 30,
	2026 vs. 2025									2026 vs. 2025
	Increase (Decrease)									Increase (Decrease)
	Due To Change In									Due To Change In
							Net									Net
	Average			Interest			Increase			Average			Interest			Increase
	Balances			Rates			(Decrease)			Balances			Rates			(Decrease)
	$			$			$			$			$			$
INTEREST INCOME

Interest on deposits at other banks		(88	)		(70	)		(158	)		(46	)		(105	)		(151	)

Securities available for sale:
Taxable		(418	)		(495	)		(913	)		(792	)		(992	)		(1,784	)
Tax-exempt		(86	)		116			30			(108	)		130			22
Total securities		(504	)		(379	)		(883	)		(900	)		(862	)		(1,762	)

Loans		3,078			1,306			4,384			5,358			2,127			7,485
Regulatory stock		14			(2	)		12			25			38			63

Total interest income		2,500			855			3,355			4,437			1,198			5,635

INTEREST EXPENSE

Deposits:
Demand deposits		488			(773	)		(285	)		449			(968	)		(519	)
Savings deposits		22			(21	)		1			26			(54	)		(28	)
Time deposits		1,035			(1,067	)		(32	)		1,331			(1,604	)		(273	)
Total deposits		1,545			(1,861	)		(316	)		1,806			(2,626	)		(820	)

Borrowings:
Short-term borrowings		210			(46	)		164			255			(48	)		207
Long-term debt		(469	)		266			(203	)		(604	)		272			(332	)
Subordinated debt		326			225			551			777			456			1,233
Total borrowings		67			445			512			428			680			1,108

Total interest expense		1,612			(1,416	)		196			2,234			(1,946	)		288

NET INTEREST INCOME		888			2,271			3,159			2,203			3,144			5,347

The following tables for the three and six months ended June 30, 2026 and 2025 show a more detailed analysis of NII on an FTE basis with major elements of the Corporation’s balance sheet, which consists of interest earning and non-interest earning assets and interest bearing and non-interest-bearing liabilities (dollars in thousands):

ENB FINANCIAL CORP
Management’s Discussion and Analysis

	For the Three Months Ended June 30,
	2026						2025
					(c)						(c)
	Average		(c)		Annualized		Average				Annualized
	Balance		Interest		Yield/Rate		Balance		Interest		Yield/Rate
	$		$		%		$		$		%
ASSETS
Interest earning assets:
Federal funds sold and interest
on deposits at other banks		39,521		251		2.54		52,248		409		3.14

Securities available for sale:
Taxable		464,212		4,239		3.65		507,374		5,152		4.06
Tax-exempt		136,441		707		2.07		139,639		677		1.94
Total securities (d)		600,653		4,946		3.29		647,013		5,829		3.60

Loans (a)		1,671,820		24,434		5.85		1,455,562		20,050		5.51

Regulatory stock		11,525		246		8.54		10,959		234		8.55

Total interest earning assets		2,323,519		29,877		5.15		2,165,782		26,522		4.90

Non-interest earning assets (d)		77,681						42,881

Total assets		2,401,200						2,208,663

LIABILITIES &
STOCKHOLDERS' EQUITY
Deposits:
Demand deposits		566,238		2,507		1.78		549,835		2,792		2.04
Savings deposits		311,349		72		0.09		286,460		71		0.10
Time deposits		457,304		3,990		3.50		430,094		4,022		3.75
Total deposits		1,334,891		6,569		1.97		1,266,389		6,885		2.18
Borrowings:
Short-term borrowings		76,827		780		4.07		60,000		616		4.16
Long-term debt		53,393		567		4.26		76,668		770		4.07
Subordinated debt		61,504		1,039		6.76		39,777		488		4.98
Total borrowings		191,724		2,386		4.99		176,445		1,874		4.26
Total interest bearing liabilities		1,526,615		8,955		2.35		1,442,834		8,759		2.43

Non-interest bearing liabilities:

Demand deposits		694,765						617,774
Other		13,217						12,921

Total liabilities		2,234,597						2,073,529

Stockholders' equity		166,603						135,134

Total liabilities & stockholders' equity		2,401,200						2,208,663

Net interest income (FTE)				20,922						17,763

Net interest spread (b)						2.80						2.47
Effect of non-interest bearing deposits						0.80						0.82
Net yield on interest earning assets (c)						3.60						3.29

(a) Includes balances of non-accrual loans and net deferred loan fees and the recognition of any related interest income.

(b) Net interest spread is the arithmetic difference between the yield on interest earning assets and the rate paid on interest bearing liabilities.

(c) Net yield, also referred to as net interest margin, is computed by dividing NII (FTE) by total interest earning assets. Yields and interest income on tax-exempt assets have been computed on a tax-equivalent basis assuming a 21% tax rate, adjusted for interest expense disallowance.

(d) Securities recorded at amortized cost. Unrealized holding gains and losses are included in non-interest earning assets.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

	For the Six Months Ended June 30,
	2026						2025
					(c)						(c)
	Average				Annualized		Average				Annualized
	Balance		Interest		Yield/Rate		Balance		Interest		Yield/Rate
	$		$		%		$		$		%
ASSETS
Interest earning assets:
Federal funds sold and interest
on deposits at other banks		43,044		473		2.22		46,687		624		2.70

Securities available for sale:
Taxable		469,649		8,564		3.65		510,525		10,348		4.05
Tax-exempt		136,749		1,404		2.05		141,734		1,382		1.95
Total securities (d)		606,398		9,968		3.29		652,259		11,730		3.60

Loans (a)		1,637,403		46,898		5.75		1,445,993		39,413		5.46

Regulatory stock		11,492		490		8.52		10,885		427		7.85

Total interest earning assets		2,298,337		57,829		5.05		2,155,824		52,194		4.84

Non-interest earning assets (d)		76,173						42,551

Total assets		2,374,510						2,198,375

LIABILITIES &
STOCKHOLDERS' EQUITY
Deposits:
Demand deposits		558,928		4,933		1.78		541,688		5,452		2.03
Savings deposits		306,476		113		0.07		285,764		141		0.10
Time deposits		459,403		7,921		3.48		426,665		8,194		3.87
Total deposits		1,324,807		12,967		1.97		1,254,117		13,787		2.22
Borrowings:
Short-term borrowings		71,112		1,443		4.09		60,107		1,236		4.15
Long-term debt		57,947		1,217		4.24		78,808		1,549		3.96
Subordinated debt		65,011		2,208		6.79		39,757		975		4.95
Total borrowings		194,070		4,868		5.04		178,672		3,760		4.24
Total interest bearing liabilities		1,518,877		17,835		2.37		1,432,789		17,547		2.47

Non-interest bearing liabilities:

Demand deposits		676,497						617,740
Other		13,613						13,101

Total liabilities		2,208,987						2,063,630

Stockholders' equity		165,523						134,745

Total liabilities & stockholders' equity		2,374,510						2,198,375

Net interest income (FTE)				39,994						34,647

Net interest spread (b)						2.68						2.37
Effect of non-interest bearing deposits						0.81						0.87
Net yield on interest earning assets (c)						3.49						3.24

(a) Includes balances of nonaccrual loans and the recognition of any related interest income. The year-to-date average balances include net deferred loan costs of $1,781 as of June 30, 2025, and $2,119 as of June 30, 2024. Such fees and costs recognized through income and included in the interest amounts totaled ($48) in 2025, and ($130) in 2024.

(b) Net interest spread is the arithmetic difference between the yield on interest earning assets and the rate paid on interest bearing liabilities.

(c) Net yield, also referred to as net interest margin, is computed by dividing net interest income (FTE) by total interest earning assets.

(d) Securities recorded at amortized cost. Unrealized holding gains and losses are included in non-interest earning assets.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

The Corporation’s average balances on securities decreased by $46,360,000, or 7.2%, for the three months ended June 30, 2026, and $45,861,000, or 7.0%, for the six months ended June 30, 2026 compared to the same periods in 2025. The tax equivalent yield on investments decreased by 31 basis points for the quarter-to-date and 31 basis points for the year-to-date period when comparing both years. Interest income on securities decreased by $883,000, or 15.1%, and $1,762,000, or 15.0%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year. The majority of the securities acquired from Cecil were sold shortly after Acquisition date and provided little in average balances for the periods presented. The 31-basis point decline in rate earned on securities is the result of a variable rate securities repricing downward.

Average balances on loans increased by $216,258,000, or 14.9%, for the three months ended June 30, 2026, and $191,410,000, or 13.2%, for the six months ended June 30, 2026, compared to the same periods in the prior year. In addition to the $147,400,000 in loans acquired in the Cecil Acquisition on February 1, 2026, strong loan production experienced in 2025 and 2026 benefited average balances in the current year. Loan yields increased by 34 basis points for the second quarter of 2026 and 29 basis points for the year-to-date period primarily as the result of loans repricing higher, portfolio composition shifting from lower yielding mortgage loans to higher yielding loan types, and the Cecil loans that were marked to fair value, which enhanced the overall yield of the loan portfolio. Interest income on loans increased by $4,384,000, or 21.9%, and $7,485,000, or 19.0%, for the three and six months ended June 30, 2026 as a result of increased loan balances and higher yields earned.

The average balance of interest-bearing deposit accounts increased by $68,502,000, or 5.4%, and $70,690,000, or 5.6%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year. Growth was experienced in all deposit types, principally due to $186,384,000 in deposits acquired in the Cecil Acquisition on February 1, 2026. Despite the growth in average deposit balances, interest expense declined by $316,000 and $820,000 for the three and six months ended June 30, 2026 compared to the same periods in the prior year. The lower expense was the result of discipline in managing the cost of funds, including less reliance on higher costing brokered time deposits which averaged $66,310,000 and $47,772,000 less in the three and six months ended June 30, 2026 compared to 2025. These brokered deposits which were used to fund the Corporation’s leverage strategy with derivatives were called, as cheaper funds became available. The rate paid on interest bearing deposits declined by 21 and 25 basis points for the three and six months ended June 30, 2026.

The Corporation’s average balance on borrowed funds increased by $15,279,000, or 8.7%, for the three months ended June 30, 2026, and $15,398,000, or 8.6%, for the six months ended June 30, 2026, compared to the same periods in 2025. In December 2025, the Corporation issued $42,500,000 in subordinated debt that was used to partially fund the Acquisition of Cecil, as well as allowing for the repayment in February 2026 of the Corporation’s 2020 subordinated debt issuance, which had converted to a floating rate of interest. The interest rate on the newly issued subordinated debt was greater than the interest rate of the amount paid off, resulting in a higher cost for subordinated debt in 2026 compared to 2025. Scheduled repayments of long-term debt in 2025 and the first half of 2026 were replaced with either deposit growth or short-term borrowings and resulted in average balances declining by $23,275,000 and $20,861,000 for the three and six months ended June 30, 2026 compared to the same periods in the prior year. Total interest expense on borrowings increased $512,000 and $1,108,000 for the three and six months ended June 30, 2026 compared to the corresponding periods in the prior year as a result of the higher costing additional subordinated debt.

For the three months ended June 30, 2026, the net interest spread increased by 33 basis points to 2.80%, compared to 2.47% for the three months ended June 30, 2025. For the six months ended June 30, 2026, the net interest spread increased by 31 basis points to 2.68%, compared to 2.37% for the six months ended June 30, 2025. The effect of non-interest bearing funds decreased to 80 basis points for the three months ended June 30, 2026, from 82 basis points for the three months ended June 30, 2025, and decreased to 81 basis points from 87 basis points for the six months ended June 30, 2026, compared to the same periods in 2025. The effect of non-interest bearing funds refers to the benefit gained from deposits on which the Corporation does not pay interest. As rates go higher, the benefit of non-interest-bearing deposits increases because there is greater difference between non-interest-bearing funds and interest-bearing liabilities. The Corporation’s NIM for the second quarter of 2026 was 3.60%, compared to 3.29% for the second quarter of 2025. For the year-to-date period, the Corporation’s NIM was 3.49%, compared to 3.24% for the same period in 2025.

The Asset Liability Committee (ALCO) carefully monitors the NIM because it indicates trends in NII, the Corporation’s largest source of revenue. For more information on the plans and strategies in place to protect the NIM and moderate the impact of changes in rates, refer to Item 7A: Quantitative and Qualitative Disclosures about Market Risk.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

Provision for Credit Losses

The provision for credit losses includes a provision for losses on loans, available-for-sale debt securities, and unfunded loan commitments. The provision provides for losses inherent in the financial assets as determined by a quarterly analysis and calculation of various factors related to the financial assets. The amount of the provision reflects the adjustment management determines necessary to ensure the Allowance for Credit Losses (ACL) is adequate to cover any losses inherent in the financial assets.

The Corporation recorded a provision release of $462,000 for the three months ended June 30, 2026 consisting of a provision release related to loans of $248,000, $214,000 in provision release for off-balance sheet credit exposure and $0 related to available for sale securities. For the three months ended June 30, 2025, the Corporation recorded a provision for credit losses of $126,000 consisting of provision related to loans of $65,000, $61,000 for off-balance sheet losses and $0 related to available for sale securities. The Corporation recorded a provision release of $484,000 for the six months ended June 30, 2026 consisting of a provision release related to loans of $140,000, $344,000 in provision release for off-balance sheet credit exposure and $0 related to available for sale securities. For the six months ended June 30, 2025, the Corporation recorded a provision for credit losses of $612,000 consisting of provision related to loans of $491,000, $121,000 for off-balance sheet losses and $0 related to available for sales securities. The provision release recorded for the three and six months ended June 30, 2026 was primarily as a result of declines in classified assets in the legacy Ephrata National Bank and acquired Cecil loan portfolios, less uncertainty in economic conditions, and lowering expected usage of off-balance sheet commitments.

As of June 30, 2026, the allowance as a percentage of total loans was 1.10%, compared to 1.11% and 1.13% at December 31, 2025 and June 30, 2025. More details are provided under Allowance for Credit Losses in the Financial Condition section that follows.

Other Income

Other income for the second quarter of 2026 was $4,062,000, an increase of $481,000, or 13.4%, compared to the $3,581,000 earned during the second quarter of 2025. Other income for the year-to-date period was $8,441,000, an increase of $1,534,000, or 22.2% from the year-to-date period in 2025. The following tables detail the categories that comprise other income:

	Three Months Ended June 30,
	2026		2025		Increase (Decrease)
	$		$		$			%

Trust and investment services		928		787		141			17.9
Service fees		953		696		257			36.9
Commissions		1,117		1,014		103			10.2
Net gains (losses) on debt and equity securities		15		48		(33	)		(68.8	)
Gains on sale of mortgages		436		391		45			11.5
Earnings on bank owned life insurance		304		282		22			7.8
Other miscellaneous income		309		363		(54	)		(14.9	)
Total other income		4,062		3,581		481			13.4

ENB FINANCIAL CORP
Management’s Discussion and Analysis

	Six Months Ended June 30,
	2026		2025			Increase (Decrease)
	$		$			$			%

Trust and investment services		1,985		1,651			334			20.2
Service fees		1,923		1,462			461			31.5
Commissions		2,175		2,026			149			7.4
Net gains (losses) on debt and equity securities		47		(285	)		332			(116.5	)
Gains on sale of mortgages		948		830			118			14.2
Earnings on bank owned life insurance		708		553			155			28.0
Other miscellaneous income		655		670			(15	)		(2.2	)
Total other income		8,441		6,907			1,534			22.2

Trust and investment services income increased by $141,000, or 17.9%, for the quarter and increased $334,000, or 20.2% year-to-date due to increased estate fees, additional wealth management accounts, and favorable market conditions. Service fees increased by $257,000, or 36.9%, for the quarter and increased $461,000, or 31.5% year-to-date due primarily to additional customers and accounts from the Cecil acquisition. Commissions increased by $103,000, or 10.2%, for the quarter and increased $149,000, or 7.4% year-to-date due to increased interchange fees. The Corporation recorded $15,000 of net gains on securities sold 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 of gains on securities sold compared to losses of $285,000 for the year-to-date period in 2025. Losses on security transactions in 2025 were due to strategic sales of investment securities to fund higher yielding loan growth. Mortgage gains 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 the prior year. This was primarily a result of 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 were higher 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 period in the prior year. This increase in the year-to-date amount was due to death benefits received related to two former directors in 2026. Other miscellaneous income decreased by $54,000, or 14.9%, and $15,000, or 2.2%, for the three and six months ended June 30, 2026, compared to the prior year as a result of sales tax refunds received in the second quarter of 2025.

Operating Expenses

Operating expenses for the second quarter of 2026 were $18,266,000, an increase of $4,344,000, or 31.2%, compared to the $13,922,000 for the second quarter of 2025. For the year-to-date period ended June 30, 2026, operating expenses totaled $36,550,000, an increase of $8,309,000, or 29.4%, compared to the same period in 2025. The following tables detail the categories that comprise operating expenses.

	Three Months Ended June 30,
	2026		2025		Increase (Decrease)
	$		$		$		%
Salaries and employee benefits		9,182		8,357		825		9.9
Occupancy expenses		1,180		873		307		35.2
Equipment expenses		628		324		304		93.8
Advertising & marketing expenses		441		375		66		17.6
Computer software & data processing expenses		2,581		1,781		800		44.9
Bank shares tax		464		382		82		21.5
Professional services		1,080		811		269		33.2
Core deposit intangible amortization		125		—		125		100.0
Merger and conversion related expenses		1,561		—		1,561		100.0
Other operating expenses		1,024		1,019		5		0.5
Total Operating Expenses		18,266		13,922		4,344		31.2

ENB FINANCIAL CORP
Management’s Discussion and Analysis

	Six Months Ended June 30,
	2026		2025		Increase (Decrease)
	$		$		$			%
Salaries and employee benefits		18,719		16,637		2,082			12.5
Occupancy expenses		2,285		1,782		503			28.2
Equipment expenses		1,160		710		450			63.4
Advertising & marketing expenses		789		742		47			6.3
Computer software & data processing expenses		4,670		3,600		1,070			29.7
Bank shares tax		914		743		171			23.0
Professional services		2,036		1,654		382			23.1
Core deposit intangible amortization		208		—		208
Merger and conversion related expenses		3,718		—		3,718
Other operating expenses		2,051		2,373		(322	)		(13.6	)
Total Operating Expenses		36,550		28,241		8,309			29.4

The Acquisition of Cecil led to increased operating expenses as four additional branches in Cecil County, Maryland, were added to the Corporation’s retail network and incremental costs of maintaining two operating systems were required following the Acquisition. The Acquisition also resulted in merger and conversion related expenses of $1,561,000 and $3,718,000 for the three and six months ended June 30, 2026, as the Corporation incurred professional services to complete the merger and employee severance payments were processed. 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.

Salaries and employee benefits are the largest category of operating expenses. For the second quarter of 2026, salaries and benefits increased $825,000, or 9.9%, and for the six months ended June 30, 2026, salaries and benefits increased $2,082,000, or 12.5%, 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. Occupancy and equipment costs were higher by a combined total of $611,000, or 51.0%, and $953,000, or 38.2%, for the three and six months ended June 30, 2026, compared to the prior year as result of costs associated with new lease expense and higher equipment costs related to the acquisition. Advertising and marketing expenses were higher by $66,000, or 17.6%, and $47,000, or 6.3%, for the three and six months ended June 30, 2026, compared to the prior year. This increase was primarily related to advertising and media production costs as the Corporation continues to pursue marketing opportunities in the communities it serves including the recently entered Cecil County market. Computer software and data processing expenses 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 the previous year due to maintaining two operating systems with the Cecil acquisition, evolution of enhanced products and services to meet customers’ needs, and increased transaction volumes. Shares tax expense is based on the Corporation’s level of shareholders’ equity and has increased $82,000, or 21.5%, and $171,000, or 23.0%, for the three and six months ended June 30, 2026 due to growth in the Bank’s shareholder’s equity. Professional services costs increased by $269,000, or 33.2%, and increased by $382,000, or 23.1%, for the quarter and year-to-date periods. The increase is primarily related to higher legal fees as well as increased costs for other outside services. Other operating expenses increased by $5,000, or 0.5%, and decreased by $322,000, or 13.6%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year due primarily to decreased level of fraud-related charge-offs.

Income Taxes

Federal and state income tax expense was $1,335,000 and $1,380,000 for the three months ended June 30, 2026 and 2025, resulting in an effective tax rate of 19.0% for both periods. For the six months ended June 30, 2026 and 2025, income tax expense was $2,357,000 and $2,362,000 for an effective tax rate of 19.5% and 18.9%. Generally, the Corporation’s effective tax rate is less than the 21% federal statutory rate due to tax-exempt income, including interest earned on tax-exempt investment securities and loans, and income from life insurance policies, partially offset by disallowed interest expense, state income taxes, and non-deductible acquisition related expenses. The increase in the year-to-date statutory rate is higher due to state tax expense with the Acquisition of Cecil, and non-deductible acquisition-related expenses.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

Financial Condition

Balance Sheet Overview and Liquidity

The Corporation maintains liquid assets at adequate levels in order to meet the needs of our balance sheet. Our primary source of liquidity is core deposits and our available-for-sale investment portfolio, both of which provide more than enough liquidity to fund loans to customers and any other funding needs.

A portion of our liquidity consists of cash and cash equivalents and borrowings. At June 30, 2026, cash and equivalents amounted to $37,145,000, compared to $60,573,000 at December 31, 2025, and $65,269,000 at June 30, 2025. Our primary sources of cash are principal repayments on loans, proceeds from the sales, calls, and maturities of investment securities, principal repayments of mortgage-backed securities and asset-backed securities, and increases in deposit accounts. As of June 30, 2026, the Corporation had outstanding borrowings from the FRB Discount Window of $16,000,000, the FHLB of $113,007,000 and the subordinated debt of $61,535,000.

At June 30, 2026, the Corporation had $660,334,000 in outstanding loan commitments, which included $89,038,000 in firm loan commitments, $543,081,000 in unused lines of credit, and open letters of credit of $28,215,000. Certificates of deposit due within one year totaled $414,538,000, or 97.6% of certificates of deposit. The Corporation believes, based on past experience, that a significant portion of certificates of deposit will remain at the Corporation upon maturity and ample liquidity exists outside of these funds. We have the ability to attract and retain deposits by adjusting the interest rates offered.

As reported in the Consolidated Statements of Cash Flows, our cash flows are classified for financial reporting purposes as operating, investing, or financing cash flows. Net cash provided by operating activities was $10,062,000 for the six months ended June 30, 2026 and $10,372,000 for the six months ended June 30, 2025. Net cash provided by investing activities was $29,790,000 for the six months ended June 30, 2026, reflecting the liquidation of the Cecil securities in 2026 combined with net loan payoffs and net cash used for investing activities was $10,508,000 for the six months ended June 30, 2025. Cash used for financing activities amounted to $63,280,000 and $3,504,000 for 6 months ended June 30, 2026 and 2025. Financing activities in 2026 were influenced by the repayment of subordinated debt and brokered deposits, partially offset by increases in demand and savings accounts.

Investment Securities

The Corporation classifies all of its debt securities as available for sale and reports the portfolio at fair market value. As of June 30, 2026, the Corporation had $568,205,000 of debt and equity securities, compared to $588,949,000 at December 31, 2025, and $601,920,000 at June 30, 2025.

In the third quarter of 2024, the Corporation adopted an investment strategy to add approximately $200,000,000 of investments, both agency and non-agency collateralized mortgage obligations consistent with investment policy credit quality parameters, in order to protect interest income in a rising rate environment. The goal of this strategy was to reduce the interest rate risk that management believes was necessary to address the Corporation’s long-term fixed rate assets. The Corporation paired the investments with off-balance sheet pay-fixed interest rate swaps to mitigate the identified rates-up risk. The leverage strategy was funded initially by callable brokered certificates of deposit and a small portion of short-term FHLB borrowings. The funding was chosen to allow for maximum flexibility to protect against rates-down risk. With this strategy, the Corporation has the ability to call the brokered CDs and replace them at lower market rates or unwind the swaps and offset with gains on the investments. At June 30, 2026, the brokered CDs initially used to fund the strategy have been called and paid off. Pay downs on the securities have resulted in the remaining balance of $175,109,000 at June 30, 2026.

Outside of the strategy discussed above, the largest movements within the securities portfolio were shaped by market factors, such as:

slope of the U.S. Treasury curve and projected forward rates

interest spread versus U.S. Treasury rates on the various securities

pricing of the instruments, including supply and demand for the product

structure of the instruments, including duration and average life

portfolio weightings versus policy guidelines

prepayment speeds on mortgage-backed securities and collateralized mortgage obligations

ENB FINANCIAL CORP
Management’s Discussion and Analysis

credit risk of each instrument, risk-based capital considerations of individual securities as well as overall balance sheet factors

Federal income tax considerations with regard to obligations of tax-free states and political subdivisions.

Cecil had securities with a fair value of $19,030,000 as of February 1, 2026, the date of Acquisition. The Corporation evaluated these securities in connection with its overall balance sheet and investment strategy of all net assets acquired and elected to sell $17,843,000 of these securities shortly after closing of the transaction.

The Corporation’s U.S. Treasury sector and U.S. government agency sectors stayed relatively flat since December 31, 2025. U.S. Treasuries represent a safe credit at a market appropriate yield which added some diversity to the portfolio. These bonds pay monthly principal and interest, and the Corporation has invested into this sector in conjunction with the investment strategy discussed above. The Corporation began investing in non-agency MBS and CMO instruments in 2022 as a way to achieve a higher yield with bonds that are well protected from a credit standpoint. As of June 30, 2026, this sector’s fair value balances stood at $133,965,000, a decrease of $9,546,000 since December 31, 2025 due to monthly paydowns. There were no concentrations of issuers greater than 10% of the securities portfolio.

The Corporation’s asset-backed securities (ABS) decreased since December 31, 2025, by $3,324,000, or 6.5%. ABS are floating rate student loan pools which are instruments that perform well in a rates-up environment and offset the interest rate risk of the longer fixed-rate municipal bonds. These securities provide a variable rate return above the overnight Federal funds rate in a safe investment with a risk rating very similar to that of U.S. Agency bonds. The asset-backed securities generally provide monthly principal and interest payments to complement the Corporation’s ongoing cash flows. Management views the ABS sector as a safe, higher yielding option than cash, with the qualities of cash in a rates-up environment.

Obligations of state and political subdivisions, or municipal bonds, consist of both tax-free and taxable securities. They carry the longest duration on average of any instrument in the securities portfolio. These instruments also experience significant fair market value gains and losses when interest rates fluctuate, and currently the yield on the portfolio has resulted in unrealized losses. The amortized cost of municipal bonds decreased slightly in the first six months of 2026. Municipal bonds represented 30.4% of the debt securities portfolio as of June 30, 2026, compared to 31.5% as of December 31, 2025. The largest geographical concentrations as of June 30, 2026 were obligations of states and political subdivisions located in the states of Pennsylvania and California.

As of June 30, 2026, the Corporation’s corporate bonds decreased by $1,895,000 or 4.20%, from balances at December 31, 2025. Corporate bonds add diversity to the portfolio and provide strong yields for short maturities; however, by their very nature, corporate bonds carry a higher level of credit risk should the entity experience financial difficulties.

The following table presents investment securities at June 30, 2026 by expected maturity, including scheduled repayments, and the weighted average yield for each maturity presented. Actual maturities may differ from expected maturities because of differences in assumptions on prepayment or call options embedded in the securities. The yields presented are calculated using tax-equivalent interest and the amortized cost (dollars in thousands).

ENB FINANCIAL CORP
Management’s Discussion and Analysis

	Within				1 - 5				5 - 10				Over 10
	1 Year				Years				Years				Years				Total
			%				%				%				%				%
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield

U.S. Treasuries		—		—		14,940		1.40		—		—		—		—		14,940		1.40
U.S. government agencies		7,500		0.71		8,900		0.86		—		—		—		—		16,400		0.79
U.S. agency mortgage-backed securities		121		2.28		30,004		2.51		3,031		4.72		252		2.97		33,408		2.71
U.S. agency collateralized mortgage obligations		863		3.20		15,669		1.97		85,491		4.53		—		—		102,023		4.13
Non Agency MBS/CMO		1,641		5.34		24,917		5.57		29,463		4.56		80,919		4.53		136,940		4.74
Asset-backed securities		1,833		5.01		29,658		4.57		16,491		4.52		—		—		47,982		4.57
Corporate bonds		16,140		1.57		18,073		2.84		10,750		3.98		—		—		44,963		2.66
Obligations of states and political subdivisions		4,008		2.98		74,871		1.90		50,427		2.30		60,617		2.00		189,923		2.06

Total securities available for sale		32,106		1.98		217,032		2.78		195,653		3.93		141,788		3.45		586,579		3.28

Loans

Net loans outstanding increased by 14.2% to $1,653,016,000 at June 30, 2026 from $1,446,716,000 at June 30, 2025. Net loans increased by 10.1%, from $1,498,859,000 at December 31, 2025. The following table shows the composition of the loan portfolio as of June 30, 2026, December 31, 2025, and June 30, 2025 (in thousands):

	June 30,					December 31,					June 30,
	2026					2025					2025
	$			%		$			%		$			%

Agriculture		324,215			19.4		317,957			21.0		294,020			20.1
Business Loans		468,640			28.0		394,558			26.2		367,194			25.1
Consumer		76,057			4.6		5,703			0.4		6,332			0.4
Home Equity		152,235			9.1		141,369			9.3		130,971			9.0
Non-Owner Occupied CRE		186,239			11.2		169,584			11.2		164,667			11.3
Residential Real Estate (a)		461,881			27.7		484,337			31.9		498,319			34.1

Total loans		1,669,267			100.0		1,513,508			100.0		1,461,503			100.0
Less:
Deferred loan costs, net		2,201					2,237					1,756
Allowance for credit losses		(18,452	)				(16,886	)				(16,543	)
Total net loans		1,653,016					1,498,859					1,446,716

(a)	Residential real estate loans do not include mortgage loans serviced for others which totaled $387,947 as of June 30, 2026, $376,287 as of December 31, 2025, and $360,378 at June 30, 2025.

The growth in the loan portfolio since December 31, 2025, was primarily the result of loans acquired from Cecil of $147,400,000, primarily in the business and consumer loan segments. The June 30, 2026, loan portfolio increased $206,300,000 from June 30, 2025. In addition to the loans acquired from Cecil, strong sales and marketing efforts led to increased balances across most categories of loans. The Corporation’s strategic plan specifically focuses on managed loan growth while maintaining quality of credit standards. The residential real estate segment has declined as management has chosen to reduce the number of mortgage loans in its portfolios due to their long maturity dates and elevated interest rate risk.

In the first six months of 2026, mortgage production decreased 14.6% compared to the first six months of 2025. Purchase money origination constituted 86.9% of the Corporation’s mortgage originations for the six months ended June 30, 2026. The held-for-investment production is 49.5% of total originations with construction-only and construction-permanent loans making up 66.6% of the total held-for-investment production. As of June 30, 2026, adjustable-rate mortgage balances were $316.8 million, representing 68.2% of the 1-4 family residential loan portfolio of the Corporation.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

Non-Performing Assets

The following table presents the Corporation’s non-performing assets at June 30, 2026, December 31, 2025, and June 30, 2025 (in thousands):

	June 30,		December 31,		June 30,
	2026		2025		2025
	$		$		$

Nonaccrual loans		9,045		9,336		10,178
Loans past due 90 days or more and still accruing		—		—		99
Total non-performing loans		9,045		9,336		10,277

Other real estate owned		748		—		989
Foreclosed assets		579		—		—
Total non-performing assets		10,372		9,336		11,266

Non-performing assets to net loans		0.63%		0.62%		0.78%

The total balance of non-performing assets decreased by $894,000, or 7.9%, over balances at June 30, 2025, and increased $1,036,000, or 11.1%, from balances at December 31, 2025. The increase over the December 31, 2025 balance was due primarily to foreclosure on a commercial property of $748,000 and $579,000 of foreclosed assets associated with the legacy Cecil portfolio.

Allowance for Credit Losses

The allowance for credit losses (ACL) is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on total loans. Management reviews the adequacy of the ACL on a quarterly basis. The ACL represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The ACL is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Corporation measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. Additionally, the ACL calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for lending policies and procedures, loan portfolio trends, lending management experience, asset quality, loan review, underlying collateral, and credit concentrations. Loans that do not share risk characteristics are evaluated on an individual basis. When management determines that foreclosure is probable and the borrower is experiencing financial difficulty, the expected credit losses are based on the fair value of collateral at the reporting date adjusted for selling costs as appropriate. Based on the quarterly calculation, management will adjust the ACL through the provision for credit losses, as necessary.

Strong credit and collateral policies have been instrumental in producing a favorable history of credit losses for the Corporation. The Net Charge-Off table below shows the net charge-offs for each segment of the Corporation’s loan portfolio for the three months ended June 30, 2026 and 2025 (in thousands):

ENB FINANCIAL CORP
Management’s Discussion and Analysis

	June 30,
	2026			2025
	$			$

Loans charged-off:
Agriculture		—			—
Business Loans		351			—
Consumer Loans		6			7
Home Equity		—			—
Non-Owner Occupied CRE		—			—
Residential Real Estate		—			84
Total loans charged-off		357			91

Recoveries of loans previously charged-off
Agriculture		—			24
Business Loans		68			1
Consumer Loans		8			7
Home Equity		—			—
Non-Owner Occupied CRE		—			—
Residential Real Estate		—			—
Total recoveries		76			32

Net charge-offs (recoveries)
Agriculture		—			(24	)
Business Loans		283			(1	)
Consumer Loans		(2	)		—
Home Equity		—			—
Non-Owner Occupied CRE		—			—
Residential Real Estate		—			84
Total net charge-offs		281			59

ENB FINANCIAL CORP
Management’s Discussion and Analysis

The Net Charge-Off table below shows the net charge-offs for each segment of the Corporation’s loan portfolio for the six months ended June 30, 2026 and 2025 (in thousands):

	June 30,
	2026		2025
	$		$

Loans charged-off:
Agriculture		—		—
Business Loans		351		—
Consumer Loans		49		34
Home Equity		—		3
Non-Owner Occupied CRE		—		—
Residential Real Estate		—		84
Total loans charged-off		400		121

Recoveries of loans previously charged-off
Agriculture		—		25
Business Loans		98		3
Consumer Loans		10		23
Home Equity		—		—
Non-Owner Occupied CRE		—		—
Residential Real Estate		—		—
Total recoveries		108		51

Net charge-offs (recoveries)
Agriculture		—		(25	)
Business Loans		253		(3	)
Consumer Loans		39		11
Home Equity		—		3
Non-Owner Occupied CRE		—		—
Residential Real Estate		—		84
Total net charge-offs		292		70

Management regularly reviews the overall risk profile of the loan portfolio and the impact that current economic trends have on the Corporation’s loans. The financial industry typically evaluates the quality of loans on a scale with “unclassified” representing healthy loans, “special mention” being the first indication of credit concern, and several successive classified ratings indicating further credit declines of “substandard,” “doubtful,” and, ultimately, “loss.”

The Corporation’s level of classified loans was $28,989,000 at June 30, 2026, compared to $35,111,000 at December 31, 2025 and $35,100,000 at June 30, 2025. Total classified loans have decreased from December 31, 2025 due to the payoff of several classified loans that reduced their loan balances

Deposits

The Corporation’s total ending deposits at June 30, 2026 increased by $143,607,000, or 7.7%, from December 31, 2025 and by $120,442,000, or 6.4%, from June 30, 2025. Customer deposits are the Corporation’s primary source of funding for loans and securities. The growth in each category of deposits was primarily the result of the $186,384,000 of deposits that were acquired in the Acquisition of Cecil. Brokered CDs totaled $3,749,000 at June 30, 2026, a decrease of $64,293,000 from December 31, 2025 and $93,240,000 from June 30, 2025. The Corporation used excess funds to call certain brokered deposits, to assist in managing the Corporation’s cost of funds.

As of June 30, 2026 and December 31, 2025, the total uninsured deposits of the Corporation were approximately $243,946,000 and $258,136,000, or 12.1% and 13.8%, of total deposits. Total uninsured deposits is calculated based on regulatory reporting requirements and reflects the portion of any deposit of a customer at an insured depository institution that exceeds the applicable FDIC insurance coverage for that depositor at that institution and amounts in any other uninsured investment or deposit accounts that are classified as deposits and not subject to any federal or state deposit insurance regime.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

The Deposits by major classification table, shown below, provides the balances of each category for June 30, 2026, December 31, 2025, and June 30, 2025 (in thousands):

	June 30		December 31,		June 30
	2026		2025		2025
	$		$		$

Non-interest bearing demand		706,839		649,090		628,757
Interest bearing demand		396,076		375,938		375,556
Money market deposit accounts		177,818		162,715		166,909
Savings accounts		311,547		283,207		288,492
Time deposits		424,688		402,411		436,812
Total deposits		2,016,968		1,873,361		1,896,526

The growth and mix of deposits is often driven by several factors including:

Acquisition of other banks

Convenience and service provided

Current rates paid on deposits relative to competitor rates

Level of and perceived direction of interest rates

Financial condition and perceived safety of the institution

Possible risks associated with other investment opportunities

Level of fees on deposit products

Borrowings

Total borrowings were $190,542,000, $209,251,000, and $175,618,000 as of June 30, 2026, December 31, 2025, and June 30, 2025, respectively. Short-term borrowings at June 30, 2026 include $16,000,000 in borrowings from the Federal Reserve Bank’s discount window to assist with liquidity needs. Short-term borrowings with the Federal Home Loan Bank (FHLB) were $60,000,000 million as of June 30, 2026, December 31, 2025, and June 30, 2025. Long-term borrowings with the Federal Home Loan Bank (FHLB) decreased to $53,007,000 at June 30, 2026 from $67,838,000 at December 31, 2025. These borrowings are used as a secondary source of funding and to assist with managing interest rate risk. As of June 30, 2026, all the borrowings of FHLB were fixed-rate loans. The Corporation continues to be well under the FHLB maximum borrowing capacity which is $794,421,000 as of June 30, 2026.

In addition to the long-term advances funded through the FHLB, the Corporation has completed three separate subordinated debt offerings in 2020, 2022 and 2025. Total subordinated debt outstanding at June 30, 2026 and December 31, 2025 was $61,535,000 and $81,413,000. The purpose of the subordinated debt offerings was to fund Bank growth, as the proceeds raised are considered Tier 2 capital for the Corporation, and portions of the cash proceeds were contributed as Tier 1 capital to the Bank. Each of the notes has a fixed rate of interest for the first five years and then converts to a floating rate of interest for the last five years. After the fixed rate period, the Corporation can redeem the notes at par. In December 2025, the Corporation issued new subordinated debt with proceeds, net of costs, totaling $41,500,000. The proceeds from the notes were to partially fund the Acquisition of Cecil, and to redeem the entire 2020 issuance of $20,000,000, which had converted to a floating rate of interest higher than its initial fixed rate. The 2020 issuance was redeemed in the first quarter of 2026.

Stockholders’ Equity

Total stockholders’ equity increased $10,466,000 from $161,054,000 at December 31, 2025 to $171,520,000 at June 30, 2026. The primary reason for the increase in stockholders’ equity was net income of $9,728,000 less dividends declared of $2,046,000 for the six months ended June 30, 2026. In addition, market conditions led to $2,275,000 of other comprehensive income for the six months ended June 30, 2026, primarily in appreciation in securities available for sale.

Federal regulatory authorities require banks to meet minimum capital levels. The Corporation, as well as the Bank, as the solely owned subsidiary of the Corporation, maintains capital ratios well above those minimum levels. The risk-weighted capital ratios are calculated by dividing capital, as defined, by total risk-weighted assets. Regulatory guidelines determine the risk-weighted assets by assigning assets to specific risk-weighted categories. Tier 2 capital includes the inclusion of the allowance for credit losses and reserve for off-balance sheet, and for the holding company, subordinated debt.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

The following tables reflect the capital ratios for the Corporation and Bank compared to the regulatory capital requirements.

REGULATORY CAPITAL RATIOS:
			Regulatory Requirements
			Adequately		Well
As of June 30, 2026	Capital Ratios		Capitalized		Capitalized
Total Capital to Risk-Weighted Assets
Consolidated		14.8%		N/A		N/A
Bank		14.3%		8.0%		10.0%

Tier 1 Capital to Risk-Weighted Assets
Consolidated		10.2%		N/A		N/A
Bank		13.2%		6.0%		8.0%

Common Equity Tier 1 Capital to Risk-Weighted Assets
Consolidated		10.2%		N/A		N/A
Bank		13.2%		4.5%		6.5%

Tier 1 Capital to Average Assets
Consolidated		7.4%		N/A		N/A
Bank		9.6%		4.0%		5.0%

As of December 31, 2025
Total Capital to Risk-Weighted Assets
Consolidated		17.8%		N/A		N/A
Bank		15.0%		8.0%		10.0%

Tier I Capital to Risk-Weighted Assets
Consolidated		11.5%		N/A		N/A
Bank		13.9%		6.0%		8.0%

Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		11.5%		N/A		N/A
Bank		13.9%		4.5%		6.5%

Tier I Capital to Average Assets
Consolidated		8.1%		N/A		N/A
Bank		9.8%		4.0%		5.0%


As of June 30, 2025
Total Capital to Risk-Weighted Assets
Consolidated		15.0%		N/A		N/A
Bank		14.8%		8.0%		10.0%

Tier 1 Capital to Risk-Weighted Assets
Consolidated		11.2%		N/A		N/A
Bank		13.6%		6.0%		8.0%

Common Equity Tier 1 Capital to Risk-Weighted Assets
Consolidated		11.2%		N/A		N/A
Bank		13.6%		4.5%		6.5%

Tier 1 Capital to Average Assets
Consolidated		7.7%		N/A		N/A
Bank		9.3%		4.0%		5.0%

As of June 30, 2026, the Bank’s Tier 1 Leverage Ratio stood at 9.6% while the Corporation’s Tier 1 Leverage Ratio was 7.4%. On February 1, 2026, the Corporation completed its Acquisition of Cecil Bancorp, Inc. in an all-cash transaction. The additional average assets and risk-weighted assets that Cecil contributed to combined assets was the primary reason the Corporation and Bank’s capital ratios are lower as no additional capital was issued in connection with the transaction. Additionally, intangible assets including goodwill and core deposit intangible, combined with net operating loss carryforwards are not eligible to be included in regulatory capital.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

Off-Balance Sheet Arrangements

In the normal course of business, the Corporation typically has off-balance sheet arrangements related to loan funding commitments. These arrangements may impact the Corporation’s financial condition and liquidity if they were to be exercised within a short period of time. As discussed in the following liquidity section, the Corporation has in place sufficient liquidity alternatives to meet these obligations. The following table presents information on the commitments by the Corporation as of June 30, 2026 (dollars in thousands):

	June 30,		December 31,
	2026		2025
	$		$
Commitments to extend credit:
Revolving home equity		303,379		283,905
1-4 family residential contruction loans		11,202		14,859
Commercial real estate, other construction and land development loans		77,836		53,286
Commercial and industrial loans		112,877		101,425
Other		126,825		122,455
Standby letters of credit		28,215		27,104

Total		660,334		603,034

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 (dollars 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		(568	)		—
Total		8,682			—
Tangible common equity (non-GAAP)		162,838			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
Management’s Discussion and Analysis

	Three Months Ended						Six Months Ended
	June 30,			June 30,			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			5,673			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%

ENB FINANCIAL CORP
Management’s Discussion and Analysis

Item 3. Quantitative and Qualitative Disclosures about Market Risk

As a financial institution, the Corporation is subject to four primary market risks: Credit risk, liquidity risk, interest rate risk, and fair value risk. The Board of Directors has established an Asset Liability Management Committee (ALCO) to measure, monitor, and manage these four primary market risks. The Asset Liability Policy has instituted guidelines for all of these primary risks, as well as other financial performance measurements with target ranges. The Asset Liability goals and guidelines are consistent with the Corporation’s Strategic Plan goals.

For discussion on credit risk, refer to the sections on non-performing assets, allowance for credit losses, Note 6, to the Consolidated Financial Statements.

Liquidity

Liquidity refers to having an adequate supply of cash available to meet business needs. Financial institutions must ensure that there is adequate liquidity to meet a variety of funding needs, at an advantageous cost. Funding new loans and covering deposit withdrawals are the primary liquidity needs of the Corporation. The Corporation uses a variety of funding sources to meet liquidity needs, such as: Deposits, loan repayments, paydowns, maturities, and sales of investment securities, borrowings, and current earnings.

Management utilizes a number of important liquidity measurements that management believes have advantages over, and give better clarity to, the Corporation’s present and projected liquidity. These measurements are evaluated quarterly through the ALCO process. There are a number of key ratios measured that involve liquidity, non-core funding sources, and contingency funding with each ratio assigned a risk level of low, moderate, or high.

As of June 30, 2026, the Corporation was in the low-risk range for all of the above measurements except for one ratio that fell in the moderate-risk range: investment securities as a percentage of total assets. The investment securities as a percentage of total assets has decreased from year end 2025. While this measurement falls in management’s moderate risk level, it is related to a specific leverage strategy and was measured and documented risk that was accepted as part of a derivative strategy that enhanced net interest income.

The Corporation’s liquidity measurements are tracked and reported quarterly by management to both observe trends and ensure the measurements stay within desired ranges. Management is confident that a sufficient amount of internal and external liquidity exists to provide for unanticipated liquidity needs.

Interest Rate Risk and Fair Value Risk

Identifying the interest rate risk of the Corporation’s interest earning assets and interest-bearing liabilities is essential to managing net interest margin and net interest income. In addition to the impact on earnings, management is also concerned about how much the value of the Corporation’s assets might fall or rise given an increasing or decreasing interest rate environment. Interest rate sensitivity analysis (IRSA) measures the impact of a change in interest rates on the net interest income and net interest margin of the Corporation, while net portfolio value (NPV) analysis measures the change in the Corporation’s capital fair value, given interest rate fluctuations. Therefore, the two primary approaches to measuring the impact of interest rate changes on the Corporation’s earnings and fair value are referred to as:

Changes in net interest income

Changes in net portfolio value

The Corporation’s asset liability model is able to perform dynamic forecasting based on a wide range of assumptions provided. The model is flexible and can be used for many types of financial projections. The Corporation uses financial modeling to forecast balance sheet growth and earnings. The results obtained through the use of forecasting models are based on a variety of factors. Both earnings and balance sheet forecasts make use of maturity and repricing schedules to determine the changes to the Corporation’s balance sheet over the course of time.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

Additionally, there are many assumptions that factor into the results. These assumptions include, but are not limited to:

Projected interest rates

Timing of interest rate changes

Slope of the U.S. Treasury curve

Spreads available on securities over the U.S. Treasury curve

Prepayment speeds on loans held and mortgage-backed securities

Anticipated calls on securities with call options

Deposit and loan balance fluctuations

Competitive pressures affecting loan and deposit rates

Economic conditions

Consumer reaction to interest rate changes

For the interest rate sensitivity analysis and net portfolio value analysis shown below, results are based on a static balance sheet reflecting no projected growth from balances as of June 30, 2026, and December 31, 2025. While it is unlikely that the balance sheet will not grow at all, management considers a static analysis of this sort to be the most conservative and most accurate means to evaluate fair value and future interest rate risk. The static balance sheet approach is used to reduce the number of variables in calculating the model’s accuracy in predicting future net interest income. It is appropriate to pull out various balance sheet growth scenarios, which could be utilized to compensate for a declining margin. By testing the model using a base model assuming no growth, this variable is eliminated and management can focus on predicted net interest income based on the current existing balance sheet.

As a result of the many assumptions, this information should not be relied upon to predict future results. Additionally, both of the analyses shown below do not consider any action that management could take to minimize or offset the negative effect of changes in interest rates. These tools are used to assist management in identifying possible areas of risk in order to address them before a greater risk is posed.

Changes in Net Interest Income

The changes in net interest income reflect how much the Corporation’s net interest income would be expected to increase or decrease given a change in market interest rates. The changes in net interest income shown are measured over a one-year time horizon and assume an immediate rate change on the rate sensitive assets and liabilities. This is considered the more important measure of interest rate sensitivity due to the immediate effect that rate changes may have on the overall performance of the Corporation. The following table takes into consideration when financial instruments would most likely reprice and the duration of the pricing change. It is important to emphasize that the information shown in the table is an estimate based on hypothetical changes in market interest rates.

	2026			2025			Policy
	Percentage			Percentage			Guidelines
	Change			Change			%

400 basis point rise		(1.8	)		2.9			(24.00	)
300 basis point rise		(0.8	)		2.4			(20.00	)
200 basis point rise		0.0			1.7			(16.00	)
100 basis point rise		0.4			0.3			(12.00	)
Base rate scenario		—			—			—
100 basis point decline		(2.5	)		(4.1	)		(12.00	)
200 basis point decline		(6.5	)		(9.7	)		(16.00	)
300 basis point decline		(11.1	)		(15.0	)		(20.00	)
400 basis point decline		(14.0	)		(19.1	)		(24.00	)

This table shows the effect of an immediate interest rate shock over a one-year period on the Corporation's net interest income.

Base rate is the Prime rate.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

As of June 30, 2026, the above analysis shows a neutral or negative impact to the Corporation’s net interest income in all rate scenarios. The Fed has cut rates in 2024 and 2025 as inflation slowed. The Corporation is now experiencing a reduction in the cost of funds on the liability side in pricing its deposits. Net interest income would decrease if rates were lower with the repricing of variable rate loans and securities moving immediately as Prime moves. The Corporation is asset sensitive in the short-term and in the long-term. The analysis above focuses on immediate rate movements, referred to as rate shocks, and measured over the course of one year.

In all of the down rates scenarios, modeled levels of net interest income improved compared to the results as of December 31, 2025. As rates rise, assets with the ability to reprice off a key benchmark rate will generally reprice by the full amount of the Federal Reserve’s rate movement. In the current environment, deposit rate changes have been slow and steady as the Fed has decreased rates slowly. Asset yields, however, decline at a faster pace which has resulted in the pressure on net interest income shown above. The analysis above assumes no growth of the Corporation’s balance sheet and no change in the mix of earning assets.

The assumptions and analysis of interest rate risk are based on historical experience during varied economic cycles. Management believes these assumptions to be appropriate; however, actual results could vary significantly. Management uses this analysis to identify trends in interest rate sensitivity and determine if action is necessary to mitigate asset liability risk.

Changes in Net Portfolio Value (NPV)

The change in NPV gives a long-term view of the exposure to changes in interest rates. The NPV is calculated by discounting the future cash flows to the present value based on current market rates. The NPV is the mathematical equivalent of the present value of assets minus the present value of liabilities.

The table below indicates the changes in the Corporation’s NPV as of June 30, 2026 and December 31, 2025. As part of the Asset Liability Policy, the Board of Directors has established risk measurement guidelines to protect the Corporation against decreases in the NPV and net interest income in the event of the interest rate changes described below.

As of June 30, 2026, the Corporation was within guidelines for all up-rate scenarios but was outside of guidelines for the down-300 and down-400 basis point rate scenarios. The positive impact of higher rates on both loans and securities was up from December 31, 2025. On the liability side of the Corporation’s balance sheet, the value of non-interest bearing deposit accounts only becomes more and more valuable as interest rates rise, which is reflected in NPV as a decrease in liabilities. These deposits have always been highly favorable in a rising rate environment as these balances are more valuable to the Corporation. However, with higher rates on interest bearing checking, NOW, and money market accounts, the benefit of these deposits in a rising rate environment has declined. As interest rates increase, the discount rate used to value the Corporation’s interest bearing accounts increases, causing a lower net present value. This improves the modeling of the Corporation’s fair value risk as the liability amounts decrease, causing the net present value or fair value of the Corporation’s balance sheet to increase.

ENB FINANCIAL CORP
Management’s Discussion and Analysis

In 2025, deposit growth was relatively flat; however, deposit pricing was lowered throughout the year to maximize profit margins. This reduction in deposit costs resulted in an improvement in the net portfolio value in all the down rate scenarios. The much higher complement of long modeling deposits caused the changes in net portfolio value to be more exaggerated in both the up and down-rate scenarios as of June 30, 2026 and December 31, 2025.

CHANGES IN NET PORTFOLIO VALUE

	2026			2025			Policy
	Percentage			Percentage			Guidelines
	Change			Change			%

400 basis point rise		6.8			6.9			(35.00	)
300 basis point rise		7.3			7.4			(30.00	)
200 basis point rise		6.6			6.8			(25.00	)
100 basis point rise		4.4			4.5			(20.00	)
Base rate scenario		—			—			—
100 basis point decline		(7.7	)		(7.9	)		(20.00	)
200 basis point decline		(19.5	)		(20.4	)		(25.00	)
300 basis point decline		(36.9	)		(38.8	)		(30.00	)
400 basis point decline		(60.8	)		(61.5	)		(35.00	)

This table shows the effect of an immediate interest rate shock on the net portfolio value of the Corporation's assets and liabilities. Base rate is the Prime rate.

The results as of June 30, 2026, indicate that the Corporation’s net portfolio value would experience valuation gains in all up-rate scenarios with a gain of 6.8% in the rates-up 400 basis point scenario, and gains of 7.3%, 6.6% and 4.4%, in the rates-up 300, rates-up 200 and 100 basis point scenarios, respectively. A valuation gain indicates that the value of the Corporation’s assets is declining at a slower pace than the decrease in the value of the Corporation’s liabilities. Even though the Corporation has some longer-term assets such as residential mortgages and municipal securities which show declines in value as interest rates increase further, the large balances of core deposits more than offsets this fair value exposure of the longer-term assets.

The changes in net portfolio value do show exposure in the down-rate scenarios with the 300 and 400 rate scenarios that are outside of policy guidelines. A valuation loss indicates that the value of the Corporation’s assets is declining at a faster pace than the decrease in the value of the Corporation’s liabilities. Even outside of the interest rate environment, the Corporation’s exposure to valuation changes could change going forward if the mix of the Corporation’s deposits change, which would impact the average life of those deposits. The Board of Directors monitors this policy exception on a quarterly basis, and measures the risk against expected market conditions at the time, including the likelihood of rates decreasing 300 or 400 basis points in a short period of time.

ENB FINANCIAL CORP

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures.

Management carried out an evaluation, under the supervision and with the participation of the Chief Executive Officer (Principal Executive Officer) and Treasurer (Principal Financial Officer), of the effectiveness of the design and the operation of the Corporation’s disclosure controls and procedures (as such term as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2026, pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the Chief Executive Officer (Principal Executive Officer) along with the Treasurer (Principal Financial Officer) concluded that the Corporation’s disclosure controls and procedures as of June 30, 2026, are effective to ensure that information required to be disclosed in the reports that the company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

(b) Changes in Internal Controls.

There have been no changes in the Corporation’s internal controls over financial reporting that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

ENB FINANCIAL CORP

PART II – OTHER INFORMATION

June 30, 2026

Item 1. Legal Proceedings

Management is not aware of any litigation that would have a material adverse effect on the consolidated financial position or results of operations of the Corporation or its subsidiaries taken as a whole. There are no proceedings pending other than ordinary routine litigation incident to the business of the Corporation. In addition, no material proceedings are pending, are known to be threatened, or contemplated against the Corporation by governmental authorities.

Item 1A. Risk Factors

The Corporation continually monitors the risks related to the Corporation’s business, other events, the Corporation’s Common Stock, and the Corporation’s industry. There have been no material changes in risk factors applicable to the Corporation from those disclosed in "Risk Factors" in Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases

The following table details the Corporation’s purchase of its own common stock during the three months ended June 30, 2026.

Issuer Purchase of Equity Securities

Total Number of

Maximum Number

Total Number

Average

Shares Purchased

of Shares that May

of Shares

Price Paid

as Part of Publicly

Yet be Purchased

Period

Purchased

Per Share

Announced Plans *

Under the Plan *

April 2026

—

185,000

May 2026

—

185,000

June 2026

—

185,000

Total

—

* On October 16, 2024, the Board of Directors of the Corporation approved a plan to repurchase, in the open market and privately renegotiated transactions, up to 200,000 shares of its outstanding common stock. This plan replaces the 2020 plan. As of June 30, 2026, 15,000 shares had been purchased under this plan.

Item 3. Defaults Upon Senior Securities – Nothing to Report

Item 4. Mine Safety Disclosures – Not Applicable

Item 5. Other Information

During the three months ended June 30, 2026, no director or officer of the Corporation adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

ENB FINANCIAL CORP

Item 6. Exhibits:

2 (i)

Agreement and Plan of Stock Acquisition by and among ENB Financial Corp, ENB South Acquisition Subsidiary, Inc., The Ephrata National Bank, Cecil Bancorp, Inc., and Cecil Bank dated as of August 12, 2025 (Incorporated by reference to Exhibit 2.1 of the Corporation’s Form 8-K filed with the SEC on August 13, 2025.)

3 (i)

Articles of Incorporation of the Registrant, as amended. (Incorporated herein by reference to Exhibit 3.1 of the Corporation’s Form 8-K filed with the SEC on June 7, 2019.)

3 (ii)

Bylaws of the Registrant, as amended. (Incorporated herein by reference to Exhibit 3.2 of the Corporation’s Form 8-K filed with the SEC on July 21, 2021.)

4.1

Form of 4.00% Fixed to Floating Rate Subordinated Note due December 31, 2030 (included as Exhibit A to the Form of Subordinated Note Purchase Agreement 4.00% Fixed to Floating Rate Subordinated Note due December 31, 2030 filed as Exhibit 10.1 thereto) (Incorporated herein by reference to Exhibit 4.1 of the Corporation’s Form 8-K filed with the SEC on December 30, 2020.)

4.2

Form of 5.75% Fixed to Floating Rate Subordinated Note due September 30, 2032 (included as Exhibit A to the Form of Subordinated Note Purchase Agreement 5.75% Fixed to Floating Rate Subordinated Note due September 30, 2032 filed as Exhibit 10.1 thereto) (Incorporated herein by reference to Exhibit 4.1 of the Corporation’s Form 8-K filed with the SEC on July 22, 2022.)

4.3

Form of 6.50% Fixed to Floating Rate Subordinated Note due December 31, 2035 (included as Exhibit A to the Form of Subordinated Note Purchase Agreement 6.50% Fixed to Floating Rate Subordinated Note due December 31, 2035 filed as Exhibit 10.1 thereto) (Incorporated herein by reference to Exhibit 4.1 of the Corporation’s Form 8-K filed with the SEC on December 18, 2025.)

10.1

Form of Deferred Income Agreement. (Incorporated herein by reference to Exhibit 10.1 of the Corporation’s Form 10-Q, filed with the SEC on August 13, 2008.)

10.2

2022 Employee Stock Purchase Plan (incorporated herein by reference to Appendix A to the Corporation’s Definitive Proxy Statement, filed with the SEC on April 4, 2022.)

10.3

2020 Non-Employee Directors’ Stock Plan (Incorporated herein by reference to Exhibit 99.1 of the Corporation’s Form S-8 filed with the SEC on June 3, 2020.)

10.4

Employment Agreement by and among ENB Financial Corp, The Ephrata National Bank and Jeffrey S. Stauffer dated as of October 28, 2022. (Incorporated herein by reference to Exhibit 10.2 of the Corporation’s Form 8-K filed with the SEC on November 1, 2022.)

10.5

Employment Agreement by and among ENB Financial Corp, The Ephrata National Bank and Rachel G. Bitner dated as of October 28, 2022. (Incorporated herein by reference to Exhibit 10.4 of the Corporation’s Form 8-K filed with the SEC on November 1, 2022.)

10.6

Amendment to Employment Agreement by and among ENB Financial Corp, The Ephrata National Bank and Rachel G. Bitner effective August 24, 2025. (Incorporated herein by reference to Exhibit 10.1 of the Corporation’s Form 8-K filed with the SEC on August 27, 2025.)

10.7

Employment Agreement by and among ENB Financial Corp, The Ephrata National Bank and Joselyn D. Strohm dated as of June 5, 2023. (Incorporated herein by reference to Exhibit 10.1 of the Corporation's Form 8-K filed with the SEC on June 7, 2023.)

10.8

Employment Agreement by and among ENB Financial Corp, The Ephrata National Bank and Douglas P. Barton dated as of December 15, 2025. (Incorporated herein by reference to Exhibit 10.1 of the Corporation's Form 8-K filed with the SEC on December 16, 2025.)

ENB FINANCIAL CORP

31.1

Section 302 Chief Executive Officer Certification (Required by Rule 13a-14(a)/15a-14(a)).

31.2

Section 302 Principal Financial Officer Certification (Required by Rule 13a-14(a)/15a-14(a)).

32.1

Section 1350 Chief Executive Officer Certification (Required by Rule 13a-14(b)).

32.2

Section 1350 Principal Financial Officer Certification (Required by Rule 13a-14(b)).

ENB FINANCIAL CORP

SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) 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: August 14, 2026	By:	/s/ Jeffrey S. Stauffer
		Jeffrey S. Stauffer
		Chairman of the Board
		Chief Executive Officer and President
		Principal Executive Officer


Dated: August 14, 2026	By:	/s/ Douglas P. Barton
		Douglas P. Barton
		Treasurer
		Principal Financial Officer