Executive Summary

Q4 delivered resilient core performance: net interest income rose 15.0% year over year to $15.2M, and noninterest income grew 19.1% to $4.8M, offset by a sharp swing in credit costs (provision of $1.37M vs. a $1.05M release last year) and higher operating expenses, driving EPS to $0.66 (vs. $0.80) and net income to $3.73M (vs. $4.52M) .
Net interest margin stabilized at 2.90% (vs. 2.89% in Q3), while the efficiency ratio improved sequentially to 70.9% (from 76.0% in Q3), reflecting stronger revenue and cost discipline despite wage pressures .
Balance sheet growth remained healthy: total assets +10.9% YoY to $2.22B; deposits +9.5% YoY to $1.89B; loans +4.9% YoY to $1.43B, with allowance at 1.13% of loans amid an uptick in classified credits late in the quarter .
Wall Street consensus estimates (S&P Global) were unavailable at query time; near‑term stock reaction catalysts include credit quality trajectory, deposit repricing pressure, and sustainability of noninterest income (mortgage gains, trust/fees, BOLI) as rates stabilize .

What Went Well and What Went Wrong

What Went Well

Core earnings drivers expanded: Q4 net interest income increased 15.0% YoY to $15.2M on higher loan and securities interest, and noninterest income rose 19.1% YoY to $4.8M, supported by trust/investment services, service fees, commissions, securities gains, and mortgage sale gains .
Margin and efficiency held firm: Net interest margin was 2.90% (vs. 2.89% in Q3), and the efficiency ratio improved to 70.9% from 76.0% in Q3, indicating sequential operating leverage despite wage inflation .
Positive rate stabilization impacts: “Stabilization of market rates has allowed the Corporation to originate and sell more 30‑year mortgages on the secondary market,” lifting gains on sale 66.7% YoY in Q4 and 138.1% for FY24 .

What Went Wrong

Credit costs rose: Provision for credit losses swung to $1.369M in Q4 (vs. a $1.048M release in Q4’23) amid “an uptick in classified loans and slightly deteriorating national economic conditions,” compressing earnings .
Expense pressure persisted: Total operating expenses rose 10.4% YoY; salaries and benefits were up 17.2% given incentive compensation and competitive labor market dynamics .
Profitability down YoY: Q4 ROA fell to 0.69% (from 0.92%), and ROE to 11.11% (from 17.98%) on higher credit costs and operating expense growth .

Financial Results

Quarterly trend (P&L and profitability metrics)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Interest Income ($USD Thousands)	$13,994	$14,170	$15,205
Provision for Credit Losses ($USD Thousands)	($207)	$497	$1,369
Noninterest Income ($USD Thousands)	$4,401	$4,539	$4,844
Noninterest Expense ($USD Thousands)	$13,368	$14,124	$14,145
Net Income ($USD Thousands)	$4,314	$3,336	$3,726
Diluted EPS ($)	$0.76	$0.59	$0.66
Net Interest Margin (%)	2.91%	2.89%	2.90%
ROA (%)	0.87%	0.65%	0.69%
ROE (%)	14.45%	10.17%	11.11%
Efficiency Ratio (%)	72.3%	76.0%	70.9%
Dividends per Share ($)	$0.17	$0.17	$0.18

Q4 year-over-year comparison

Metric	Q4 2023	Q4 2024
Net Interest Income ($USD Thousands)	$13,220	$15,205
Provision (Release) for Credit Losses ($USD Thousands)	($1,048)	$1,369
Noninterest Income ($USD Thousands)	$4,068	$4,844
Noninterest Expense ($USD Thousands)	$12,808	$14,145
Net Income ($USD Thousands)	$4,524	$3,726
Diluted EPS ($)	$0.80	$0.66
Net Interest Margin (%)	2.80%	2.90%
ROA (%)	0.92%	0.69%
ROE (%)	17.98%	11.11%
Efficiency Ratio (%)	74.6%	70.9%

Balance sheet and KPIs (quarter-end)

KPI	Q2 2024	Q3 2024	Q4 2024
Total Assets ($USD Thousands)	$2,024,558	$2,092,471	$2,219,831
Total Loans ($USD Thousands)	$1,384,076	$1,410,511	$1,427,269
Total Deposits ($USD Thousands)	$1,754,370	$1,815,415	$1,890,443
Total Borrowings ($USD Thousands)	$131,970	$127,498	$183,538
Stockholders’ Equity ($USD Thousands)	$125,966	$135,159	$130,984
Allowance for Credit Losses (% of Loans)	1.04%	1.05%	1.13%

Segment breakdown: Not applicable; results are presented on a consolidated basis with typical community bank revenue/expense categories .

Guidance Changes

No formal quantitative guidance was provided in the Q4 earnings materials. Dividends per share for Q4 were $0.18 (vs. $0.17 in Q4’23) as disclosed, but no forward dividend guidance was given .

Metric	Period	Previous Guidance	Current Guidance	Change
Financial guidance	FY/Q1 outlook	N/A	N/A	No guidance provided

Earnings Call Themes & Trends

No Q4 earnings call transcript was posted in the filings set; themes below synthesize management commentary from Q2–Q4 press releases.

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Deposit pricing pressure	“Continued high interest rate environment putting pressure on deposit rates in order to maintain balances” (Q2/Q3)	Rate environment continued to pressure deposit costs; NIM stable at 2.90%	Persistent, but NIM stabilized
Net interest margin	NIM 2.91% (Q2); 2.89% (Q3) reflecting funding cost pressure	NIM 2.90% (Q4)	Stable sequentially
Credit quality/provision	YTD provision release in H1; provision of $497K in Q3 on uptick in classified loans	Provision $1.369M on uptick in classified loans and slightly deteriorating national conditions	Deteriorated vs. Q3
Noninterest income drivers	Gains on mortgage sales +134.3% YoY in Q2; continued strength in Q3; BOLI boosted by death benefit; securities gains improved vs. 2023	Mortgage sale gains +66.7% YoY; trust/investment, service fees, and commissions grew; securities gains recorded	Strong and broad-based
Operating expense/salaries	Salaries/benefits +5.5% YoY in Q2; +17.6% YoY in Q3 on talent/incentives	Salaries/benefits +17.2% YoY; total opex +10.4% YoY	Elevated cost base
Securities gains/losses	2023 saw elevated losses to fund loan growth; 2024 improving with gains in Q2/Q3	Q4 posted gains ($176K) vs. gains of $273K in Q4’23; FY gains vs. FY23 losses	Continued normalization

Management Commentary

“The interest rate environment [is] putting pressure on deposit rates in order to maintain balances and remain competitive.” This continued to lift interest expense and compress NIM relative to historical levels, despite sequential stability .
“During the fourth quarter of 2024, the Corporation saw an uptick in classified loans and slightly deteriorating national economic conditions resulting in additional provision expense.” This drove the YoY swing in provision and weighed on profitability .
“Stabilization of market rates has allowed the Corporation to originate and sell more 30‑year mortgages on the secondary market,” supporting higher mortgage sale gains and fee income diversification .

Q&A Highlights

No Q4 earnings call transcript was available in the filings set; therefore, no Q&A highlights to report. Management commentary is drawn from the company’s press releases .

Estimates Context

S&P Global consensus for Q4 2024 EPS and revenue was unavailable at query time; as a result, estimate comparisons are not included. Future updates should reassess once S&P Global data is accessible.
Operationally, core drivers suggest potential estimate sensitivity around credit costs and expense run‑rate, offset by stable NIM and durable fee income (trust, service fees, mortgage, and BOLI) .

Key Takeaways for Investors

Core revenue momentum: NII +15.0% YoY and noninterest income +19.1% YoY in Q4 underscore durable top‑line support from loan yields, securities income, and diversified fees .
Credit costs are the swing factor: Provision rose to $1.369M on classified loan uptick; credit trajectory will drive near‑term EPS variability and sentiment .
Margin steady, efficiency improved: NIM held 2.90% and the efficiency ratio improved to 70.9% from 76.0% in Q3, signaling better operating leverage into year‑end .
Expense discipline vs. wage pressure: Salaries/benefits +17.2% YoY weighed on operating leverage; monitoring incentive accruals and hiring costs remains critical .
Balance sheet growth and funding: Deposits +9.5% YoY and assets +10.9% YoY provide scale, but funding costs remain a watch item as rates reprice .
Fee income tailwinds: Mortgage sale gains and trust/fee income benefited from rate stabilization and product mix; sustainability here can cushion NII cyclicality .
Near‑term focus: watch credit metrics (classified/special mention trends), deposit betas and remix, and pace of expense growth; these are likely to drive trading on subsequent disclosures .

ENB Financial Corp (ENBP)·Q4 2024 Earnings Summary