ENBP · ENB Financial Corp

ENB Financial Corp's Q1 2026 results reflect the impact of its February 1 acquisition of Cecil Bancorp, which expanded the balance sheet with $147.4 million in net loans and $186.4 million in deposits, contributing to total assets of $2.42 billion (up 9.2% YoY) and loans of $1.65 billion (up 14.2%). GAAP net income fell 6.8% to $4.0 million due to $2.2 million in merger and conversion expenses (net of tax $1.9 million), but adjusted net income rose to $5.9 million. EPS declined to $0.71 from $0.76, with adjusted EPS at $1.03. Net interest income grew 12.8% to $18.9 million, driven by 16.0% higher loan interest income from Cecil's portfolio, despite a 15.4% drop in securities income from lower rates and balances. Interest expense on deposits declined due to lower rates and strategic actions like calling brokered deposits, though borrowings costs rose from higher subordinated debt. A $22,000 provision release replaced last year's $486,000 expense, supported by favorable charge-offs, with ACL at 1.15% of loans. Noninterest income surged 31.7% from Cecil customers, trust fees, security gains, and bank-owned life insurance. Expenses rose 27.7% from acquisition integration, additional branches, and staffing. ROA and ROE declined to 0.70% and 9.92% from merger costs. Management anticipates system conversion in June 2026. Dividend held at $0.18 per share.