On July 22, 2022, ENB Financial Corp. (the 'Company') entered into Subordinated Note Purchase Agreements (the 'Purchase Agreements') with certain institutional accredited investors and qualified institutional buyers (the ‘Purchasers') pursuant to which the Company sold and issued $20.0 million in aggregate principal amount of its 5.75% fixed to floating rate subordinated notes due September 30, 2032 (the ‘Notes'). The Notes were issued by the Company to the Purchasers at a price equal to 100% of their face amount.

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. The Purchase Agreements contain certain customary representations, warranties and covenants made by the Company, on the one hand, and the Purchasers, severally and not jointly, on the other hand. The Notes have a stated maturity of September 30, 2032, are redeemable by the Company at its option, in whole or in part, on or after July 22, 2027, and at any time upon the occurrences of certain events.

Prior to July 22, 2027, the Company may redeem the Notes, in whole or in part, only under certain limited circumstances set in the Note. On or after July 22, 2027, the Company may redeem the Notes, in whole or in part, at its option, on any interest payment date. Any redemption by the Company would be at a redemption price equal to 100% of the principal amount of the Notes being redeemed, together with any accrued and unpaid interest on the Notes being redeemed to but excluding the date of redemption.

The Notes are not subject to redemption at the option of the holder. The Notes will bear interest at a fixed rate of 5.75% per year, from and including July 22, 2022 to, but excluding, July 22, 2027 or earlier redemption date. From and including July 22, 2027 to, but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate equal to the three month term secured overnight financing rate (‘SOFR') plus 299 basis points.

As provided in the Notes, the interest rate on the Notes during the applicable floating rate period may be determined based on a rate other than the three month term SOFR. Principal and interest on the Notes are subject to acceleration only in limited circumstances. The Notes are unsecured, subordinated obligations of the Company, are not obligations of, and are not guaranteed by, any subsidiary of the Company, and rank junior in right of payment to the Company's current and future senior indebtedness.

The Notes are intended to qualify as Tier 2 capital of the Company for regulatory capital purposes. The Notes were offered and sold by the Company in a private placement transaction in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the ‘Securities Act'), pursuant to Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D thereunder. The Notes are not subject to any sinking fund and are not convertible into or exchangeable for any other securities or assets of the Company or any of its subsidiaries.