Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - ENB Financial Corp | ex99-2.htm |
| EX-10.1 - EX-10.1 - ENB Financial Corp | ex10-1.htm |
| 8-K - 8-K - ENB Financial Corp | form8k-25209_enbf.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | Contact: | Scott E. Lied |
| Phone: | 717-733-4181 |
ENB Financial Corp Issues $20 Million in Subordinated Notes
(December 30, 2020) -- Ephrata, PA - ENB Financial Corp (the “Company” or “ENB”) (OTCQX: ENBP), the bank holding company for Ephrata National Bank (the “Bank”), today announced the completion of its private placement of $20 million of its 4.00% Fixed to Floating Rate Subordinated Notes (the “Notes”) to certain qualified institutional buyers and institutional accredited investors.
The Notes will have a maturity date of December 31, 2030 and initially bear interest, payable semi-annually, at a fixed annual rate of 4.00% per annum until December 31, 2025. Commencing on that date, the interest rate applicable to the outstanding principal amount due will be reset quarterly to an interest rate per annum equal to the then current three-month secured overnight financing rate (SOFR) plus 374 basis points, payable quarterly until maturity. The Company may redeem the Notes at par, in whole or in part, at its option, anytime beginning on or after December 30, 2025, payable on any interest payment date thereafter. The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes for the Company.
The Company intends to use the net proceeds it received from the sale of the Notes for general corporate purposes and to support organic growth initiatives.
Performance Trust Capital Partners, LLC served as sole placement agent for the offering. Bybel Rutledge, LLP served as legal counsel to the Company and Alston & Bird LLP served as legal counsel to Performance Trust Capital Partners, LLC.
This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy, any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.
About ENB Financial Corp
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 twelve 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.
Safe Harbor Forward-Looking Statements:
Certain of the matters discussed in this press release 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 risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The words “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” and similar expressions are intended to identify such forward-looking statements.
The Company’s actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation:
| · | National and local economic conditions |
| · | Effects of economic conditions particularly with regard to the negative impact of severe, wide-ranging and continuing disruptions caused by the spread of coronavirus (COVID-19) and government and business responses thereto, specifically the effect on loan customers to repay loans |
| · | Health of the housing market |
| · | Real estate valuations and its impact on the loan portfolio |
| · | Interest rate and monetary policies of the Federal Reserve Board |
| · | Volatility of the securities markets including the valuation of securities |
| · | Future actions or inactions of the United States government, including a failure to increase the government debt limit or a prolonged shutdown of the federal government |
| · | Political changes and their impact on new laws and regulations |
| · | Competitive forces |
| · | Impact of mergers and acquisition activity in the local market and the effects thereof |
| · | Potential impact from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses |
| · | Changes in customer behavior impacting deposit levels and loan demand |
| · | 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 |
| · | Management’s ability to manage credit risk, liquidity risk, interest rate risk, and fair value risk |
| · | Operation, legal, and reputation risk |
| · | Results of the regulatory examination and supervision process |
| · | The impact of new laws and regulations |
| · | Possible changes to the capital and liquidity requirements and other regulatory pronouncements, regulations and rules |
| · | Large scale global disruptions such as pandemics, terrorism, trade wars, and armed conflict. |
| · | Local disruptions due to flooding, severe weather, or other natural disasters |
| · | 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 Company cautions readers not to place undue reliance on forward-looking statements, which reflect analyses only as of the date of this release. The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.