ENBP

New in FY2025

• Ongoing Legislation As a consequence of the extensive regulation of the financial services industry and specifically commercial banking activities in the United States, the Corporation’s business is particularly susceptible to changes in federal and state legislation and regulations.
• Statistical Data The statistical disclosures required by this item are incorporated by reference herein from the Consolidated Statements of Income on page 54 as found in this Form 10-K filing.
• Additional risks and uncertainties that ENB FINANCIAL CORP management is not aware of or is not focused on, or currently deems immaterial, may also impair the Corporation’s business operations.
• Risks Related to Interest Rates and Investments The Corporation Is Subject to Interest Rate Risk The Corporation’s earnings and cash flows are largely dependent upon its net interest income.
• Changes in monetary policy, including changes in interest rates, could influence not only the interest the Corporation receives on loans and securities, but also the amount of interest it pays on deposits and borrowings.
• In determining whether a credit loss exists, management shall consider the factors in paragraphs 326-30-55-1 through 55-4 of ASU 2016-13, Financial Instruments – Credit Losses, and use its best estimate of the present value of cash flows expected to be collected from the debt security.
• Risks Related to Credit The Corporation Is Subject to Lending Risk There are inherent risks associated with the Corporation’s lending activities.
• The Corporation is also subject to various laws ENB FINANCIAL CORP and regulations that affect its lending activities.
• As of December 31, 2025, 26.0% of the Corporation’s loan portfolio consisted of Business Loans.
• The Corporation’s Allowance for Credit Losses May Be Insufficient to Cover Actual Losses The Corporation maintains an allowance for credit losses, which is a reserve established through a provision for credit losses, charged to expense.
• The allowance for credit losses represents the Corporation’s best estimate of expected losses in our financial assets, which includes loans, leases, and debt securities.
• The level of the allowance for possible credit losses includes quantitative and qualitative factors that comprise the Corporation’s estimate of expected credit losses, including portfolio mix and segmentation, modeling methodology, historical loss experience, relevant available information from internal and external sources relating to qualitative adjustment factors, and reasonable and supportable forecasts about future economic conditions.
• Any increases in the allowance for credit losses will result in a decrease in net income, and may have a material adverse effect on the Corporation’s financial condition and results of operations.
• The Corporation Is Subject to Environmental Liability Risk Associated with Lending Activities A significant portion of the Corporation’s loan portfolio is secured by real property.
• The remediation costs and any other financial liabilities ENB FINANCIAL CORP associated with an environmental hazard could have a material adverse effect on the Corporation’s financial condition and results of operations.
• Risks Related to Competition and Business Strategy The Corporation Operates in A Highly Competitive Industry and Market Area The Corporation faces substantial competition in all areas of its operations from a variety of different competitors, many of which are larger and may have more financial resources.
• The Corporation’s ability to compete successfully depends on a number of factors, including, among other things: · The ability to develop, maintain, and build upon long-term customer relationships based on quality service, high ethical standards, and safe, sound management practices · The ability to expand the Corporation’s market position · The scope, relevance, and pricing of products and services offered to meet customer needs and demands · The rate at which the Corporation introduces new products and services relative to its competitors · Customer satisfaction with the Corporation’s level of service · Industry and general economic trends Failure to perform in any of these areas could significantly weaken the Corporation’s competitive position, which could adversely affect the Corporation’s growth and profitability and have a material adverse effect on the Corporation’s financial condition and results of operations.
• ENB FINANCIAL CORP The Corporation’s Profitability Depends Significantly on Economic Conditions in the Commonwealth of Pennsylvania and Its Market Area The Corporation’s success depends primarily on the general economic conditions of the Commonwealth of Pennsylvania, and more specifically, the local markets in which the Corporation operates.
• In developing and marketing new lines of business and/or new products and services, the Corporation may invest significant amount of time and resources.
• The Corporation’s Controls and Procedures May Fail or Be Circumvented Management regularly reviews and updates the Corporation’s internal controls, disclosure controls and procedures, and corporate governance policies and procedures.
• The Corporation May Not Be Able to Attract and Retain Skilled People The Corporation’s success highly depends on its ability to attract and retain key people.
• The occurrence of any failures, interruptions, or security breaches of the Corporation’s communications, information and technology systems could damage the Corporation’s reputation, adversely affecting customer or consumer confidence, result in a loss of customer business, subject the Corporation to additional regulatory scrutiny and ENB FINANCIAL CORP possible regulatory penalties, or expose the Corporation to civil litigation and possible financial liability, any of which could have a material adverse effect on the Corporation’s financial condition and results of operations.
• Further, the Corporation may face unknown or contingent liabilities arising from cybersecurity incidents or data breaches that previously occurred at companies it acquires.
• Such incidents may not have been discovered, disclosed, or if previously discovered fully-remediated before closing, and the acquired company’s representations, warranties, and indemnities may be limited in scope, duration, or recoverability.
• As a result, the Corporation could incur costs or liabilities after an acquisition relating to regulatory investigations, litigation, remediation efforts, reputational harm, or customer and partner claims, which could adversely affect its business, financial condition, and results of operations.
• The Corporation Uses Artificial Intelligence (AI) In Its Business, And Challenges with Properly Managing Its Use Could Result in Disruption of the Corporation’s Internal Operations, Reputational Harm, Competitive Harm, Legal Liability and Adversely Affect Our Results of Operations and Stock Price.
• If the Corporation adopts the use of Generative AI, its content creation may require additional investment as testing for bias, accuracy and unintended, harmful impact is often complex and ENB FINANCIAL CORP may be costly.
• The Increasing Use of Social Media Platforms Presents Risks and Challenges and Our Inability or Failure to Recognize, Respond to and Effectively Manage the Accelerated Impact of Social Media Could Materially Adversely Impact Our Business The use of social media platforms, including weblogs (blogs), social media websites, and other forms of Internet-based communications allows individuals access to a broad audience of consumers and other interested persons.
• Social media practices in the banking industry are continually evolving, which creates uncertainty and risk of noncompliance with regulations applicable to our business.
• Financial Services Companies Depend on the Accuracy and Completeness of Information About Customers and Counterparties In deciding whether to extend credit or enter into other transactions, the Corporation may rely on information furnished by, or on behalf of, customers and counterparties, including financial statements, credit reports, and other financial information.
• The process of eliminating banks ENB FINANCIAL CORP as intermediaries, known as “disintermediation,” could result in the loss of fee income, as well as the loss of customer deposits and the related income generated from those deposits.
• Negative Developments Affecting the Banking Industry, Including Bank Failures or Concerns Regarding Liquidity, Have Eroded Customer Confidence in the Banking System and May Have a Material Adverse Effect on the Corporation Events impacting the banking industry, including the high-profile failure or instability of certain banking institutions, have resulted and may continue to result in general uncertainty and eroded confidence in the safety, soundness, and financial strength of the financial services sector.
• Natural Disasters, Acts of War or Terrorism, Domestic and International Instability, Pandemics, and Other External Events Could Significantly Impact the Corporation’s Business Severe weather, natural disasters, acts of war or terrorism, domestic and international instability, pandemics, and other adverse external events could have a significant impact on the Corporation’s ability to conduct business.
• Changes to trade policies and tariffs can have an adverse impact on the Corporation’s business and its customers Changes in trade policies, including the imposition of tariffs or the escalation of a trade war, could negatively impact the economic conditions in the markets the Corporation serves.
• The Corporation’s customers-particularly local businesses engaged in agriculture, manufacturing, and retail-may face higher costs for imported goods and materials, reduced export demand, and supply chain disruptions due to increased tariffs.
• These challenges could lead to lower revenues, reduced profitability, and potential layoffs, all of which may impair the Corporation’s customers' ability to meet their financial obligations.
• Furthermore, prolonged trade tensions and economic uncertainty could lead to market volatility, declining asset values, and weakened consumer confidence.
• If its customers experience financial stress, the Corporation could see an increase in loan delinquencies and credit losses, negatively affecting its asset quality and overall financial performance.
• Additionally, any decline in local economic activity could reduce loan demand, deposit growth, and fee income, which are critical to the Corporation’s long-term success.
• While it actively monitors economic and policy developments, the Corporation cannot predict the outcome of trade negotiations or the full impact of tariffs and trade restrictions on its business, customers, and the broader economy.

and 26 more.

Gone since FY2024

• ENB FINANCIAL CORP Ongoing Legislation As a consequence of the extensive regulation of the financial services industry and specifically commercial banking activities in the United States, the Corporation’s business is particularly susceptible to changes in federal and state legislation and regulations.
• Statistical Data The statistical disclosures required by this item are incorporated by reference herein from the Consolidated Statements of Income on page 55 as found in this Form 10-K filing.
• Additional risks and uncertainties that management is not aware of or is not focused on, or currently deems immaterial, may also impair the Corporation’s business operations.
• Risks Related To The Corporation’s Business The Corporation Is Subject To Interest Rate Risk The Corporation’s earnings and cash flows are largely dependent upon its net interest income.
• ENB FINANCIAL CORP Changes in monetary policy, including changes in interest rates, could influence not only the interest the Corporation receives on loans and securities, but also the amount of interest it pays on deposits and borrowings.
• The Corporation Is Subject To Lending Risk There are inherent risks associated with the Corporation’s lending activities.
• The Corporation is also subject to various laws and regulations that affect its lending activities.
• As of December 31, 2024, 25.3% of the Corporation’s loan portfolio consisted of Business Loans.
• The Corporation’s Allowance For Possible Credit Losses May Be Insufficient The Corporation maintains an allowance for possible credit losses, which is a reserve established through a provision for credit losses, charged to expense.
• The allowance for possible credit losses represents the Corporation’s best estimate of expected losses in our financial assets, which includes loans, leases, and debt securities.
• ENB FINANCIAL CORP The level of the allowance for possible credit losses includes quantitative and qualitative factors that comprise the Corporation’s estimate of expected credit losses, including portfolio mix and segmentation, modeling methodology, historical loss experience, relevant available information from internal and external sources relating to qualitative adjustment factors, and reasonable and supportable forecasts about future economic conditions.
• Any increases in the allowance for possible credit losses will result in a decrease in net income, and may have a material adverse effect on the Corporation’s financial condition and results of operations.
• In determining whether a credit loss exists, management shall consider the factors in paragraphs 326-30-55-1 through 55-4 of ASU 2016-13 and use its best estimate of the present value of cash flows expected to be collected from the debt security.
• The Basel III Capital Requirements Or Other Regulatory Standards May Require Us To Maintain Higher Levels Of Capital, Which Could Reduce Our Profitability Basel III targets higher levels of base capital, certain capital buffers, and a migration toward common equity as the key source of regulatory capital.
• ENB FINANCIAL CORP The Corporation Is Subject To Environmental Liability Risk Associated With Lending Activities A significant portion of the Corporation’s loan portfolio is secured by real property.
• The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on the Corporation’s financial condition and results of operations.
• The Corporation’s Profitability Depends Significantly On Economic Conditions In The Commonwealth Of Pennsylvania And Its Market Area The Corporation’s success depends primarily on the general economic conditions of the Commonwealth of Pennsylvania, and more specifically, the local markets in which the Corporation operates.
• The Corporation Operates In A Highly Competitive Industry And Market Area The Corporation faces substantial competition in all areas of its operations from a variety of different competitors, many of which are larger and may have more financial resources.
• ENB FINANCIAL CORP The Corporation’s ability to compete successfully depends on a number of factors, including, among other things: ● The ability to develop, maintain, and build upon long-term customer relationships based on quality service, high ethical standards, and safe, sound management practices ● The ability to expand the Corporation’s market position ● The scope, relevance, and pricing of products and services offered to meet customer needs and demands ● The rate at which the Corporation introduces new products and services relative to its competitors ● Customer satisfaction with the Corporation’s level of service ● Industry and general economic trends Failure to perform in any of these areas could significantly weaken the Corporation’s competitive position, which could adversely affect the Corporation’s growth and profitability and have a material adverse effect on the Corporation’s financial condition and results of operations.
• In general, statutes establish the corporate governance and eligible business activities for the Corporation, certain acquisition and merger restrictions, limitations on inter-company transactions such as loans and dividends, capital adequacy requirements, requirements for anti-money laundering programs and other compliance matters, among other regulations.
• ENB FINANCIAL CORP The Corporation’s Controls And Procedures May Fail Or Be Circumvented Management regularly reviews and updates the Corporation’s internal controls, disclosure controls and procedures, and corporate governance policies and procedures.
• In developing and marketing new lines of business and/or new products and services, the Corporation may invest significant time and resources.
• Future Acquisitions May Disrupt The Corporation’s Business And Dilute Stockholder Value The Corporation may use its common stock to acquire other companies or make investments in corporations and other complementary businesses.
• The Corporation may issue additional shares of common stock to pay for future acquisitions, which would dilute the ownership interest of current shareholders of the Corporation.
• Future business acquisitions could be material to the Corporation, and the degree of success achieved in acquiring and integrating these businesses into the Corporation could have a material effect on the value of the Corporation’s common stock.
• In addition, any acquisition could require the Corporation to use substantial cash or other liquid assets or to incur debt.
• In those events, the Corporation could become more susceptible to economic downturns and competitive pressures.
• If the Corporation raises capital through the issuance of additional shares of its common stock or other securities, it would likely dilute the ownership interests of current investors and could dilute the per share book value and earnings per share of its common stock.
• ENB FINANCIAL CORP The Corporation May Not Be Able To Attract And Retain Skilled People The Corporation’s success highly depends on its ability to attract and retain key people.
• The occurrence of any failures, interruptions, or security breaches of the Corporation’s communications, information and technology systems could damage the Corporation’s reputation, adversely affecting customer or consumer confidence, result in a loss of customer business, subject the Corporation to additional regulatory scrutiny and possible regulatory penalties, or expose the Corporation to civil litigation and possible financial liability, any of which could have a material adverse effect on the Corporation’s financial condition and results of operations.
• ENB FINANCIAL CORP The Corporation Uses Artificial Intelligence (AI) In Its Business, And Challenges With Properly Managing Its Use Could Result In Disruption Of The Corporation’s Internal Operations, Reputational Harm, Competitive Harm, Legal Liability And Adversely Affect Our Results Of Operations And Stock Price.
• If the Corporation adopts the use of Generative AI, its content creation may require additional investment as testing for bias, accuracy and unintended, harmful impact is often complex and may be costly.
• The Increasing Use Of Social Media Platforms Presents New Risks And Challenges And Our Inability Or Failure To Recognize, Respond To And Effectively Manage The Accelerated Impact Of Social Media Could Materially Adversely Impact Our Business There has been a marked increase in the use of social media platforms, including weblogs (blogs), social media websites, and other forms of Internet-based communications which allow individuals access to a broad audience of consumers and other interested persons.
• Social media practices in the banking industry are evolving, which creates uncertainty and risk of noncompliance with regulations applicable to our business.
• ENB FINANCIAL CORP Financial Services Companies Depend On The Accuracy And Completeness Of Information About Customers And Counterparties In deciding whether to extend credit or enter into other transactions, the Corporation may rely on information furnished by, or on behalf of, customers and counterparties, including financial statements, credit reports, and other financial information.
• The process of eliminating banks as intermediaries, known as “disintermediation,” could result in the loss of fee income, as well as the loss of customer deposits and the related income generated from those deposits.
• Negative Developments Affecting The Banking Industry, Including Bank Failures Or Concerns Regarding Liquidity, Have Eroded Customer Confidence In The Banking System And May Have A Material Adverse Effect On The Corporation.
• Events impacting the banking industry, including the high-profile failure or instability of certain banking institutions, have resulted and may continue to result in general uncertainty and eroded confidence in the safety, soundness, and financial strength of the financial services sector.
• Other Events Natural Disasters, Acts Of War Or Terrorism, Domestic and International Instability, Pandemics, and Other External Events Could Significantly Impact The Corporation’s Business Severe weather, natural disasters, acts of war or terrorism, domestic and international instability, pandemics, and other adverse external events could have a significant impact on the Corporation’s ability to conduct business.
• ENB FINANCIAL CORP Risks Associated With The Corporation’s Common Stock The Corporation’s Stock Price Can Be Volatile Stock price volatility may make it more difficult for shareholders to resell their shares of common stock when they desire and at prices they find attractive.