ENB Financial Corp Finalizes Cecil Bancorp Acquisition, Boosting Market Reach and Scale

ENB Financial Corp (NASDAQ: ENBF) has successfully completed its acquisition of Cecil Bancorp, Inc. and its banking subsidiary, Cecil Bank. This significant acquisition, initially announced on August 12, 2025, became effective on February 1, 2026. ENB issued a press release on February 2, 2026, confirming the transaction, which substantially enhances ENB's market footprint and financial scale.

Key Transaction Details:

• Acquisition Structure: ENB Financial Corp now wholly owns Cecil Bancorp, Inc. Cecil Bank has since merged into ENB's primary banking subsidiary, The Ephrata National Bank.
• Consideration: Cecil Bancorp shareholders received $1.88 per share in cash, totaling approximately $31.3 million.

Strategic Rationale and Enhanced Scale: This acquisition marks a pivotal step in ENB's growth strategy, expanding its presence into new markets and strengthening its competitive position.

• Market Expansion: The acquisition extends ENB's geographic reach into new areas, providing access to new customer bases and growth opportunities.
• Increased Scale: After the acquisition, ENB Financial Corp expects to operate with approximately $2.5 billion in total assets, $2.0 billion in total deposits, and $1.8 billion in total loans. This significantly increases ENB's scale, enhancing its lending capacity and market share.
• Deposit Growth: ENB gains approximately $200 million in deposits from Cecil Bank, providing a stable funding source for future loan growth.
• Operational Efficiencies: Integrating Cecil Bank's operations should generate significant cost savings. These savings, primarily from combining technology platforms, administrative functions, and optimizing branches, are projected to reach approximately $2.0 million in annual pre-tax savings, fully realized within 12-18 months after closing.

Financial Impact for Investors:

• Earnings Per Share (EPS): ENB expects the acquisition to increase its earnings per share by approximately 5% in the first full year of combined operations (2027), excluding one-time integration costs.
• Tangible Book Value (TBV): The transaction will likely dilute tangible book value by approximately 3% at closing, with an estimated earn-back period of 3 years.
• Return on Assets/Equity: Increased scale and anticipated synergies should positively impact ENB's long-term return on assets (ROA) and return on equity (ROE).

Impact on Stakeholders:

• Customers: Former Cecil Bank customers will join The Ephrata National Bank, gaining access to an expanded network of approximately 30 branches, a broader suite of products and services, and enhanced digital banking. ENB will provide detailed communication regarding account transitions, new services, and branch branding.
• Employees: While mergers often create some role redundancies, ENB commits to retaining key talent and providing opportunities within the larger organization. Integration plans aim to ensure a smooth transition for employees.
• Local Communities: Communities previously served by Cecil Bank will now benefit from The Ephrata National Bank's resources and commitment, which will maintain local banking services and community involvement.

Integration and Outlook: With all necessary regulatory approvals secured, ENB's immediate focus shifts to fully integrating Cecil Bank into The Ephrata National Bank. This process includes merging IT systems, harmonizing product offerings, and consolidating operational procedures. ENB expects to substantially complete this integration within 12-18 months. Management will update investors on integration progress and financial performance during upcoming earnings calls and presentations.

Key Investor Considerations:

• Growth Trajectory: This acquisition highlights ENB's commitment to growth and market leadership, positioning the company for enhanced long-term value.
• Integration Risk: While ENB expects significant synergies, integrating two banking institutions carries inherent risks. These include potential unexpected costs, IT system challenges, and customer retention issues. Investors should monitor ENB's execution of its integration plan.
• Financial Performance: Investors should closely watch ENB's financial reports for updates on projected cost savings, EPS accretion, and tangible book value earn-back.
• Market Reaction: The market's short-term reaction to such transactions can be volatile. Investors should consider the long-term strategic benefits and financial projections.