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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
______________
Date of Report (Date of earliest event
reported): October 21, 2024
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) |
(717) 733-4181
(Registrant’s telephone number, including area
code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
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 is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
(§240.12b-2 of this chapter).
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. ☐
CURRENT REPORT ON FORM 8-K
| Item 2.02 | Results of Operations and Financial Condition |
The
Registrant issued a press release regarding earnings for the third quarter of 2024 on October 21, 2024 attached as Exhibit 99 and incorporated
herein by reference.
The
information furnished under this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99, shall not be deemed “filed”
for purposes of the Securities Exchange Act of 1934, as amended.
| Item 9.01 | Financial Statement and Exhibits |
(d) Exhibits
The following
exhibits are filed in this Current Report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly
authorized.
| |
ENB FINANCIAL CORP |
| |
(Registrant) |
| |
|
| |
|
| Dated: October 22, 2024 |
/s/ Rachel G. Bitner |
| |
Rachel G. Bitner |
| |
Treasurer |
| |
(Principal Financial Officer) |
| FOR IMMEDIATE RELEASE |
Contact: |
Rachel Bitner |
| |
Phone: |
717-733-4181 |
ENB
Financial Corp Reports Third Quarter 2024 Results
(October 21, 2024) -- Ephrata, PA –
ENB Financial Corp (OTCQX: ENBP), the bank holding company for Ephrata National Bank, reports net income for the third quarter of 2024
of $3,336,000, a $277,000, or 7.7% decrease, from the $3,613,000 earned during the third quarter of 2023. Net income for the nine months
ended September 30, 2024, was $11,591,000, a $3,740,000, or 47.6% increase, over the $7,851,000 earned for the nine months ended September
30, 2023. Basic and diluted earnings per share for the third quarter of 2024 and 2023 were $0.59 and $0.64, respectively and year-to-date
earnings per share were $2.05 in 2024 compared to $1.39 in 2023. The Corporation’s earnings were positively impacted by higher interest
and non-interest income through the third quarter of 2024, and negatively impacted by several factors including a provision for credit
losses and increased operating expenses, as detailed in the paragraphs that follow.
The Corporation’s net interest
income (NII) increased by $812,000, or 6.1%, for the three months ended September 30, 2024, and $717,000, or 1.8%, for the nine months
ended September 30, 2024, compared to the same periods in 2023. Interest income on loans increased by $2,752,000, or 17.3%, and $9,359,000,
or 21.0%, for the three and nine months ended September 30, 2024, while interest income on securities increased by $96,000, or 2.6%, and
decreased by $121,000, or 1.1%, for the same time periods. Interest expense on deposits and borrowings increased by $2,657,000, or 39.8%,
and $9,954,000, or 62.2%, for the three and nine months ended September 30, 2024, compared to the same periods in the prior year due to
the continued high interest rate environment putting pressure on deposit rates in order to maintain balances and remain competitive.
The Corporation recorded a provision
for credit losses of $497,000 in the third quarter of 2024, compared to a release of provision expense of $504,000 for the third quarter
of 2023. For the year-to-date period, the Corporation recorded a release of provision expense of $354,000, compared to provision expense
of $1,568,000 recorded for the nine months ended September 30, 2023. For the third quarter, the Corporation has seen an uptick in classified
loans resulting in additional provision expense. On a year-to-date basis, there was less economic impact in the forward credit outlook
due to improving economic indicators resulting in a reduction of provision expense when compared to 2023. The allowance as a percentage
of total loans was 1.05% as of September 30, 2024, and 1.22% as of September 30, 2023.
Other income increased by $984,000,
or 27.7%, and $4,655,000, or 53.9%, for the three and nine months ended September 30, 2024, compared to the same periods in the prior
year. Trust and investment services income increased $131,000, or 19.8% and $482,000, or 22.7%, for the three and nine months ended September
30, 2024. Service fees increased $150,000, or 10.9%, and $927,000, or 27.2%, primarily related to higher fees earned on an off-balance
sheet deposit sweep account and increased surcharge income. Commissions increased by $122,000, or 13.3%, and $332,000, or 12.2%, primarily
related to higher interchange fees on debit card transactions. The company recorded $211,000 in security gains in the third quarter of
2024, compared to losses of $103,000 in the third quarter of 2023. Losses on security transactions totaled $103,000 for the nine months
ended September 30, 2024, compared to $1,769,000 for the nine months ended September 30, 2023, due to the sale of a larger number of investment
securities at a loss during the first nine months 2023 to fund higher yielding loan growth. Gains on the sale of mortgages increased by
$189,000, or 105.0%, and $885,000, or 174.9%, for the three and nine months ended September 30, 2024, compared to the same periods in
2023, as the stabilization of market rates has allowed the Corporation to originate and sell more 30-year mortgages on the secondary market.
Earnings on bank owned life insurance increased by $34,000, or 13.9%, for the third quarter of 2024 compared to the third quarter of 2023.
For the nine months ended September 30, 2024, earnings on bank owned life insurance increased by $271,000, or 38.3%, compared to the same
periods in 2023 as a result of a death benefit recognized during the second quarter of 2024.
( more )
Total operating expenses increased by
$1,091,000, or 8.4%, and $2,487,000, or 6.4%, for the three and nine months ended September 30, 2024, compared to the same periods in
2023. Salary and benefit expenses, which make up the largest portion of operating expenses, increased by $1,294,000, or 17.6%, and $2,612,000,
or 11.5%, for these time periods, due to the competitive labor market and the cost to hire and retain qualified talent. Other operating
expenses outside of salaries and benefits did not change significantly since the prior year.
The Corporation’s annualized return
on average assets (ROA) and return on average stockholders’ equity (ROE) for the third quarter of 2024 decreased to 0.65% and 10.17%,
respectively, from 0.75% and 13.68% for the third quarter of 2023. For the nine months ended September 30, 2024, the Corporation’s
annualized ROA was 0.77%, compared to 0.56% in 2023, while the ROE was 12.50%, compared to 10.11% in 2023.
As of September 30, 2024, the Corporation
had total assets of $2.09 billion, up 9.6%; total loans of $1.41 billion, up 5.6%; total deposits of $1.82 billion, up 9.3%; and total
stockholders’ equity of $135.2 million, up 38.6%, from balances at September 30, 2023. The Corporation’s earnings, net of
dividends paid, as well as the improved valuation of the investment portfolio positively impacted the level of stockholders’ equity.
The changes in unrealized gains and losses on investments impact capital on an ongoing basis and have improved since the devaluation
that occurred during the dramatic increase in market interest rates during the last two years.
ENB Financial Corp, headquartered in Ephrata,
PA, is the bank holding company for its wholly-owned subsidiary Ephrata National Bank. Ephrata National Bank operates from thirteen full-service
locations in Lancaster County, southeastern Lebanon County, and southern Berks County, Pennsylvania, with the headquarters located at
31 E. Main Street, Ephrata, PA. Ephrata National Bank has been serving the community since 1881. For more information about ENB Financial
Corp, visit the Corporation’s web site at www.enbfc.com.
Notice Regarding Forward Looking Statements
This news release may constitute forward-looking statements for purposes
of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown
risk, uncertainties and other factors which may cause the actual results of ENB Financial Corp to be materially different from future
results expressed or implied by such forward-looking statements. These forward-looking statements can be identified by use of terminology
such as “expect”, “plan”, “anticipate”, “believe”, “estimate”, and similar
words that are intended to identify such forward-looking statements. These forward-looking statements are based on management’s
current expectations, assumptions, estimates, and projections about the Corporation, the financial services industry, and the economy.
The Private Securities Reform Act of 1995 provides safe harbor in the event the projected future operations are not met. There are a number
of future factors such as changes in fiscal or monetary policy, or changes in the economic climate that will influence the Corporation’s
future operations. These factors are difficult to predict with regard to how likely and to what degree or significance that they would
occur. Actual results may differ materially from what may have been forecasted in the forward-looking statements. We are not obligated
to publicly update any forward-looking statements to reflect the effects of subsequent events.
SUMMARY CONSOLIDATED FINANCIAL INFORMATION (Unaudited)
(in thousands, except per share and percentage
data)
| | |
September 30, | |
% |
| Balance Sheet | |
2024 | |
2023 | |
Change |
| | |
| |
| |
|
| Securities | |
$ | 527,652 | | |
$ | 447,193 | | |
| 18.0 | % |
| Total loans | |
| 1,410,511 | | |
| 1,335,597 | | |
| 5.6 | % |
| Allowance for credit losses | |
| 14,742 | | |
| 16,349 | | |
| -9.8 | % |
| Total assets | |
| 2,092,471 | | |
| 1,908,547 | | |
| 9.6 | % |
| Deposits | |
| 1,815,415 | | |
| 1,660,990 | | |
| 9.3 | % |
| Total borrowings | |
| 127,498 | | |
| 138,044 | | |
| -7.6 | % |
| Stockholders' equity | |
| 135,159 | | |
| 97,502 | | |
| 38.6 | % |
| | |
Three Months Ended | |
Nine Months Ended |
| Income Statement | |
September 30, | |
September 30, |
| | |
2024 | |
2023 | |
2024 | |
2023 |
| | |
| |
| |
| |
|
| Net interest income | |
$ | 14,170 | | |
$ | 13,358 | | |
$ | 41,536 | | |
$ | 40,819 | |
| Provision (release) for credit losses | |
| 497 | | |
| (504 | ) | |
| (354 | ) | |
| 1,568 | |
| Noninterest income | |
| 4,539 | | |
| 3,555 | | |
| 13,286 | | |
| 8,631 | |
| Noninterest expense | |
| 14,124 | | |
| 13,033 | | |
| 41,086 | | |
| 38,599 | |
| Income before taxes | |
| 4,088 | | |
| 4,384 | | |
| 14,090 | | |
| 9,283 | |
| Provision for income taxes | |
| 752 | | |
| 771 | | |
| 2,499 | | |
| 1,432 | |
| Net Income | |
| 3,336 | | |
| 3,613 | | |
| 11,591 | | |
| 7,851 | |
| | |
| | | |
| | | |
| | | |
| | |
| Per Share Data | |
| | | |
| | | |
| | | |
| | |
| Earnings per share | |
| 0.59 | | |
| 0.64 | | |
| 2.05 | | |
| 1.39 | |
| Dividends per share | |
| 0.17 | | |
| 0.17 | | |
| 0.51 | | |
| 0.51 | |
| | |
| | | |
| | | |
| | | |
| | |
| Earnings Ratios | |
| | | |
| | | |
| | | |
| | |
| Return on average assets (ROA) | |
| 0.65 | % | |
| 0.75 | % | |
| 0.77 | % | |
| 0.56 | % |
| Return on average stockholders equity (ROE) | |
| 10.17 | % | |
| 13.68 | % | |
| 12.50 | % | |
| 10.11 | % |
| Net Interest margin | |
| 2.89 | % | |
| 2.90 | % | |
| 2.86 | % | |
| 2.99 | % |
| Efficiency ratio | |
| 76.0 | % | |
| 75.9 | % | |
| 74.5 | % | |
| 74.6 | % |
(end)
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ENB Financial (QX) (USOTC:ENBP)
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