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ACNB Corporation Reports 2024 Third Quarter Financial Results

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ACNB reported Q3 2024 net income of $7.2 million ($0.84 per diluted share), down from $9.0 million ($1.06 per share) in Q3 2023 and $11.3 million ($1.32 per share) in Q2 2024. The quarter's results were impacted by $1.1 million in merger-related expenses due to the pending Traditions Bancorp acquisition. Key metrics include a return on average assets of 1.17%, FTE net interest margin of 3.77%, and non-performing loans ratio of 0.39%. Total loans stood at $1.68 billion, while deposits decreased to $1.79 billion. The Board declared a quarterly dividend of $0.32 per share, representing a 6.7% increase over the same quarter of 2023.

ACNB ha segnalato un reddito netto per il terzo trimestre del 2024 di 7,2 milioni di dollari (0,84 dollari per azione diluita), in calo rispetto ai 9,0 milioni di dollari (1,06 dollari per azione) del terzo trimestre del 2023 e agli 11,3 milioni di dollari (1,32 dollari per azione) del secondo trimestre del 2024. I risultati del trimestre sono stati influenzati da 1,1 milioni di dollari in spese legate alla fusione a causa dell'acquisizione in corso di Traditions Bancorp. Le metriche chiave includono un ritorno medio sugli attivi dell'1,17%, un margine di interesse netto FTE del 3,77% e un rapporto di prestiti non performanti dello 0,39%. I prestiti totali si sono attestati a 1,68 miliardi di dollari, mentre i depositi sono diminuiti a 1,79 miliardi di dollari. Il Consiglio ha dichiarato un dividendo trimestrale di 0,32 dollari per azione, che rappresenta un aumento del 6,7% rispetto allo stesso trimestre del 2023.

ACNB reportó un ingreso neto del tercer trimestre de 2024 de 7,2 millones de dólares (0,84 dólares por acción diluida), una disminución desde los 9,0 millones de dólares (1,06 dólares por acción) en el tercer trimestre de 2023 y los 11,3 millones de dólares (1,32 dólares por acción) en el segundo trimestre de 2024. Los resultados del trimestre se vieron afectados por 1,1 millones de dólares en gastos relacionados con la fusión debido a la adquisición pendiente de Traditions Bancorp. Las métricas clave incluyen un retorno sobre activos promedio del 1,17%, un margen de interés neto FTE del 3,77% y una relación de préstamos no rentables del 0,39%. Los préstamos totales ascendieron a 1,68 mil millones de dólares, mientras que los depósitos disminuyeron a 1,79 mil millones de dólares. La Junta declaró un dividendo trimestral de 0,32 dólares por acción, lo que representa un aumento del 6,7% en comparación con el mismo trimestre de 2023.

ACNB 는 2024년 3분기 순이익이 720만 달러(희석주당 0.84달러)라고 보고했으며, 이는 2023년 3분기 900만 달러(주당 1.06달러)와 2024년 2분기 1130만 달러(주당 1.32달러)에서 감소한 수치입니다. 이번 분기 결과는 진행 중인 Traditions Bancorp 인수로 인한 110만 달러의 합병 관련 비용의 영향을 받았습니다. 주요 지표는 평균 자산 수익률 1.17%, FTE 순이자 마진 3.77%, 비수익 대출 비율 0.39%를 포함합니다. 총 대출은 16억 8천만 달러에 달했으며, 예금은 17억 9천만 달러로 감소했습니다. 이사회는 분기 배당금을 주당 0.32달러로 선언했는데, 이는 2023년 같은 분기 대비 6.7% 증가한 수치입니다.

ACNB a annoncé un revenu net de 7,2 millions de dollars (0,84 dollars par action diluée) pour le troisième trimestre de 2024, en baisse par rapport à 9,0 millions de dollars (1,06 dollars par action) au troisième trimestre de 2023 et 11,3 millions de dollars (1,32 dollars par action) au deuxième trimestre de 2024. Les résultats du trimestre ont été impactés par 1,1 million de dollars de frais liés à la fusion en raison de l'acquisition en cours de Traditions Bancorp. Les indicateurs clés incluent un retour sur actifs moyen de 1,17 %, une marge d'intérêt nette FTE de 3,77 % et un ratio de prêts non performants de 0,39 %. Les prêts totaux s'élevaient à 1,68 milliard de dollars, tandis que les dépôts ont diminué à 1,79 milliard de dollars. Le Conseil a déclaré un dividende trimestriel de 0,32 dollars par action, représentant une augmentation de 6,7 % par rapport au même trimestre de 2023.

ACNB berichtete für das dritte Quartal 2024 einen Nettogewinn von 7,2 Millionen Dollar (0,84 Dollar pro verwässerter Aktie), ein Rückgang von 9,0 Millionen Dollar (1,06 Dollar pro Aktie) im dritten Quartal 2023 und 11,3 Millionen Dollar (1,32 Dollar pro Aktie) im zweiten Quartal 2024. Die Ergebnisse des Quartals wurden durch 1,1 Millionen Dollar an mit der Fusion verbundenen Kosten beeinträchtigt, die durch die bevorstehende Übernahme von Traditions Bancorp entstanden. Zu den wichtigsten Kennzahlen gehören eine Rendite auf das durchschnittliche Vermögen von 1,17%, eine FTE-Nettomarge von 3,77% und eine Quote der notleidenden Kredite von 0,39%. Die Gesamtdarlehen beliefen sich auf 1,68 Milliarden Dollar, während die Einlagen auf 1,79 Milliarden Dollar sanken. Der Vorstand erklärte eine vierteljährliche Dividende von 0,32 Dollar pro Aktie, was einem Anstieg von 6,7% im Vergleich zum gleichen Quartal 2023 entspricht.

Positive
  • Tangible common equity to tangible assets ratio improved to 10.74% from 8.65% year-over-year
  • Net unrealized loss on securities portfolio decreased to $36.8M from $75.2M year-over-year
  • Quarterly dividend increased by 6.7% to $0.32 per share
  • Insurance commissions increased by $158,000 from Q3 2023
  • Strong asset quality with low net charge-offs of 0.01%
Negative
  • Net income decreased to $7.2M from $9.0M year-over-year
  • FTE net interest margin declined to 3.77% from 4.01% year-over-year
  • Total deposits decreased by $160.0M (8.2%) year-over-year
  • Non-performing loans ratio increased to 0.39% from 0.22% year-over-year
  • Net interest income decreased by $803,000 (3.7%) year-over-year

Insights

The Q3 2024 results show mixed performance for ACNB Net income decreased to $7.2 million ($0.84 per share) from $9.0 million year-over-year, primarily impacted by $1.1 million in merger-related expenses for the Traditions Bancorp acquisition. Key metrics reveal:

  • Net interest margin compressed to 3.77% from 4.01% YoY due to higher funding costs
  • Non-performing loans increased to 0.39% of total loans, up from 0.19% in Q2, driven by one healthcare industry relationship
  • Core deposits declined $160.0 million YoY, while borrowings increased $139.7 million

The pending Traditions acquisition positions ACNB as Pennsylvania's largest community bank under $5 billion in assets, though integration costs may pressure near-term earnings. Asset quality remains solid despite the single NPL increase, with minimal net charge-offs of 0.01%.

The bank's deposit dynamics reflect broader industry challenges, with total deposits declining 8.2% YoY to $1.79 billion. Notably, noninterest-bearing deposits decreased by $102 million YoY, while time deposits increased 20.4%, indicating deposit mix deterioration and higher funding costs. The 91.1% YoY increase in borrowings to $293.1 million at a higher cost of 4.31% suggests ongoing funding pressures.

The strategic Traditions acquisition enhances market presence but comes with integration risks and expenses. The tangible book value improvement to $29.90 per share and increased dividend of $0.32 demonstrate financial stability, though profitability metrics show some pressure with ROA at 1.17%.

GETTYSBURG, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) -- ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced net income of $7.2 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2024 compared to net income of $9.0 million, or $1.06 diluted earnings per share, for the three months ended September 30, 2023 and net income of $11.3 million, or $1.32 diluted earnings per share, for the three months ended June 30, 2024. Financial results for the three months ended September 30, 2024 were impacted by $1.1 million in merger-related expense due to the pending acquisition of Traditions Bancorp, Inc. Financial results for the three month period ended June 30, 2024 were impacted by a $3.2 million reversal of the provisions for credit losses and unfunded commitments.

2024 Third Quarter Highlights

  • Return on average assets was 1.17% and return on average equity was 9.63% for the three months ended September 30, 2024. Core return on average assets1 was 1.32% and core return on average equity1 was 10.81% for the three months ended September 30, 2024.
  • Fully taxable equivalent (“FTE”) net interest margin was 3.77% for the three months ended September 30, 2024 compared to 3.82% for the three months ended June 30, 2024 and 4.01% for the three months ended September 30, 2023.
  • Total non-performing loans to total loans, net of unearned income, was 0.39% at September 30, 2024 compared to 0.19% at June 30, 2024 and 0.22% at September 30, 2023. The increase in non-performing loans to total loans, net of unearned income, for the three months ended September 30, 2024 was the result of one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter.
  • Net charge-offs to average loans outstanding (annualized) were 0.01% for the three months ended September 30, 2024 and 0.00% for the three months ended June 30, 2024 compared to 0.03% for the three months ended September 30, 2023.
  • Tangible common equity to tangible assets ratio1 of 10.74% at September 30, 2024 compared to 9.84% at June 30, 2024 and 8.65% at September 30, 2023. The net unrealized loss on the available for sale securities portfolio was $36.8 million at September 30, 2024 compared to a net unrealized loss of $52.7 million at June 30, 2024 and a net unrealized loss of $75.2 million at September 30, 2023.
  • ACNB and ACNB Bank capital levels remain well in excess of ACNB’s internal minimums and those required to be categorized as a well-capitalized institution by our bank regulators.

“We are once again pleased to share strong operating results for the third quarter of 2024. Our continued focus on profitability and asset quality as evidenced by our return on average assets and return on average equity are a testament to the continued focus on our strategic objectives,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

“During the third quarter, we were also pleased to announce the strategic acquisition of Traditions Bancorp, Inc. This acquisition will create the largest community bank in Pennsylvania with assets less than $5 billion and enhances our presence in York County and expands our branch footprint in neighboring Lancaster County. We are excited to welcome Traditions as ACNB continues to expand our market presence. This strategic acquisition will complement our current operations with profitable growth opportunities in adjacent markets while contributing to the Corporation’s established commitment of enhancing long-term shareholder value.”

Mr. Helt continued, “As we look forward to the remainder of 2024 and the start of a new year in 2025, we are excited that our strong foundation based on community banking principles combined with the growth opportunities now before us through our strategic planning objectives will enable us to continue to deliver on our commitment to our stakeholders.”

Net Interest Income and Margin

Net interest income for the three months ended September 30, 2024 totaled $20.9 million, a decrease of $803 thousand, or 3.7%, compared to the three months ended September 30, 2023 driven by a decrease in the FTE net interest margin over the same period. The FTE net interest margin for the three months ended September 30, 2024 was 3.77%, a decrease of 24 basis points from 4.01% for the three months ended September 30, 2023. The decrease in FTE net interest margin was driven primarily by an increase in long-term borrowings and promotional time deposit balances and costs. Total average borrowings increased $132.5 million for the three months ended September 30, 2024 compared to the same period in September 30, 2023. The average rate paid on total borrowings was 4.31% for the three months ended September 30, 2024, an increase of 48 basis points from the three months ended September 30, 2023. Total average interest-bearing deposits decreased $54.4 million, or 3.9%, for the three months ended September 30, 2024 compared to September 30, 2023; however, average time deposit balances increased $45.9 million due to ongoing promotions. The average rate paid on interest-bearing deposits was 0.92% for the three months ended September 30, 2024, an increase of 66 basis points from the three months ended September 30, 2023.

Net interest income for the three months ended September 30, 2024 totaled $20.9 million, a decrease of $22 thousand, or 0.1%, compared to $21.0 million for the three months ended June 30, 2024 driven by a decrease in the FTE net interest margin over the same period. The FTE net interest margin for the three months ended September 30, 2024 decreased 5 basis points from 3.82% for the three months ended June 30, 2024. The decrease in FTE net interest margin was driven primarily by the recognition of nonaccrual interest income related to a specific large relationship during the three months ended June 30, 2024 and increases in the cost of average interest-bearing deposits during the three months ended September 30, 2024. Excluding nonaccrual interest income related to the payoff of a specific large relationship, the FTE net interest margin was 3.79% for the three months ended June 30, 2024. The average rate paid on interest-bearing deposits was 0.92% for the three months ended September 30, 2024, an increase of 13 basis points from the three months ended June 30, 2024.

Noninterest Income

Noninterest income for the three months ended September 30, 2024 was $6.8 million, an increase of $536 thousand, or 8.5%, from the three months ended September 30, 2023. Wealth management income for the three months ended September 30, 2024 was $1.2 million, an increase of $235 thousand from the three months ended September 30, 2023 driven primarily by portfolio market appreciation, estate income and new business generation. Insurance commissions for the three months ended September 30, 2024 were $2.8 million, an increase of $158 thousand from the three months ended September 30, 2023 driven primarily by growth in commissions on policy renewals and new business in the current quarter. Gain from mortgage loans held for sale totaled $112 thousand for the three months ended September 30, 2024 compared to none for the three months ended September 30, 2023.

Noninterest income for the three months ended September 30, 2024 increased $406 thousand, or 6.3%, from the three months ended June 30, 2024. The increase was driven primarily by increases in wealth management income driven by higher estate income and other income driven by annual check ordering incentives received during the three months ended September 30, 2024. Additionally, there was a higher volume of mortgages sold in the current quarter, which resulted in a higher gain from mortgage loans held for sale for the three months ended September 30, 2024 compared to the three months ended June 30, 2024.

Noninterest Expense

Noninterest expense for the three months ended September 30, 2024 was $18.2 million, an increase of $1.9 million, or 11.7%, from the three months ended September 30, 2023. The increase was driven primarily by merger-related and salaries and employee benefits expenses. The increase in merger-related expense was driven primarily by professional service expenses incurred for the Traditions acquisition and totaled $1.1 million for the three months ended September 30, 2024. Salaries and employee benefits expense increased $948 thousand driven primarily by $682 thousand in higher employee health insurance expense and $273 thousand higher base wages. In addition, equipment expense increased $144 thousand driven primarily by higher core processing expenses and incremental purchases of office equipment. Partially offsetting these increases, professional services decreased $208 thousand for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 driven primarily by lower recruiting expenses for talent acquisition and consulting expenses. Marketing and corporate relations declined $60 thousand in the current quarter primarily due to rebranding expenses incurred for the three months ended September 30, 2023.

Noninterest expense for the three months ended September 30, 2024 increased $1.9 million, or 11.3%, from the three months ended June 30, 2024. The increase was driven primarily by merger-related and salaries and employee benefits expenses. Merger-related expense totaled $1.1 million for the three months ended September 30, 2024 compared to $23 thousand for the three months ended June 30, 2024. Salaries and employee benefits expense increased $591 thousand during the three months ended September 30, 2024 compared to the three months ended June 30, 2024 driven primarily by higher employee health insurance expense of $519 thousand. Additionally, equipment expense increased $128 thousand driven primarily by higher core processing and software maintenance expenses coupled with incremental purchases of office equipment. Professional services expense decreased $120 thousand during the three months ended September 30, 2024 compared to the three months ended June 30, 2024 driven primarily by lower transfer agent and audit expenses.

Loans and Asset Quality

Total loans outstanding were $1.68 billion at September 30, 2024, a decrease of $2.5 million, or 0.1%, from June 30, 2024 and an increase of $61.1 million, or 3.8%, from September 30, 2023. The decrease from June 30, 2024 was driven primarily by real estate construction. The increase from September 30, 2023 was driven primarily by growth in the commercial real estate portfolio in our core markets. Growth in the commercial real estate portfolio was spread throughout the Bank’s geographic footprint and across various property types. The commercial real estate portfolio grew $59.2 million, or 6.6%, in 2024. The collateral for these loans is primarily spread across our Pennsylvania and Maryland market areas. Despite the intense competition in the Corporation’s market areas, management continues to focus on asset quality and disciplined underwriting standards in the loan origination process.

Asset quality metrics continue to be stable. The provision for credit losses was $81 thousand and the provision for unfunded commitments was $40 thousand for the three months ended September 30, 2024 compared to a reversal to the provision for credit losses of $3.0 million and a reversal to the provision for unfunded commitments of $259 thousand for the three months ended June 30, 2024. For the three months ended September 30, 2023, there was a provision for credit losses of $250 thousand and a $171 thousand reversal to the provision for unfunded commitments. The increase in the provision for credit losses and unfunded commitments for the three months ended September 30, 2024 compared to the prior quarter was driven primarily by a $3.2 million reversal of the provision for credit losses and unfunded commitments in the prior quarter and one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter.

Non-performing loans were $6.6 million, or 0.39%, of total loans, net of unearned income, at September 30, 2024 compared to $3.1 million, or 0.19%, of total loans at June 30, 2024 and $3.6 million, or 0.22%, of total loans at September 30, 2023. The increase in non-performing loans at September 30, 2024 compared to the prior quarter was primarily the result of one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during the current quarter. Annualized net charge-offs for the three months ended September 30, 2024 were 0.01% of total average loans compared to 0.00% and 0.03% for the three months ended June 30, 2024 and September 30, 2023, respectively.

Deposits and Borrowings

Deposits totaled $1.79 billion at September 30, 2024, a decrease of $47.3 million, or 2.6%, since June 30, 2024 and a decrease of $160.0 million, or 8.2%, from September 30, 2023. Included in total deposits were $1.33 billion interest-bearing deposits at September 30, 2024 which decreased $31.0 million, or 2.3%, from June 30, 2024 and decreased $58.0 million, or 4.2%, from September 30, 2023. Time deposits, included in interest-bearing deposits, increased $1.3 million, or 0.5%, and $43.5 million, or 20.4%, since June 30, 2024 and September 30, 2023, respectively. Total noninterest-bearing deposits were $463.5 million at September 30, 2024 compared to $479.7 million at June 30, 2024 and $565.5 million at September 30, 2023.

Total borrowings were $293.1 million at September 30, 2024, a decrease of $11.2 million, or 3.7%, compared to June 30, 2024 and an increase of $139.7 million, or 91.1%, compared to September 30, 2023. A $25.0 million short-term borrowing was paid off during the quarter. The average rate on total borrowings was 4.31% for the three months ended September 30, 2024 compared to 4.48% for the three months ended June 30, 2024 and 3.83% for the three months ended September 30, 2023.

Stockholders’ Equity, Dividends and Share Repurchases

Total stockholders’ equity was $306.8 million at September 30, 2024 compared to $289.3 million at June 30, 2024 and $255.6 million at September 30, 2023. Tangible book value2 per share was $29.90, $27.82 and $23.80 at September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

As announced on Form 8-K on October 16, 2024, the Board of Directors approved and declared a regular quarterly cash dividend of $0.32 per share of ACNB Corporation common stock payable on December 13, 2024, to shareholders of record as of November 29, 2024. This per share amount reflects a $0.02, or 6.7%, increase over the same quarter of 2023.

ACNB repurchased 2,642 shares of ACNB common stock during the three months ended September 30, 2024.

About ACNB Corporation

ACNB Corporation, headquartered in Gettysburg, PA, is the $2.42 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, and ACNB Insurance Services, Inc., Westminster, MD. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 27 community banking offices and two loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 46 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, MD, and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.

SAFE HARBOR AND FORWARD-LOOKING STATEMENTS - Should there be a material subsequent event prior to the filing of the Quarterly Report on Form 10-Q with the Securities and Exchange Commission, the financial information reported in this press release is subject to change to reflect the subsequent event. In addition to historical information, this press release may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of Management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Corporation’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as national, regional and local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. Such risks, uncertainties, and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: short-term and long-term effects of inflation and rising costs on the Corporation, customers and economy; banking instability caused by bank failures and continuing financial uncertainty of various banks which may adversely impact the Corporation and its securities and loan values, deposit stability, capital adequacy, financial condition, operations, liquidity, and results of operations; effects of governmental and fiscal policies, as well as legislative and regulatory changes; effects of new laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which the Corporation and its subsidiaries must comply; impacts of the capital and liquidity requirements of the Basel III standards; effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future market conditions; future actions or inactions of the United States government, including the effects of short-term and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the federal government; effects of economic conditions particularly with regard to the negative impact of any pandemic, epidemic or health-related crisis and the responses thereto on the operations of the Corporation and current customers, specifically the effect of the economy on loan customers’ ability to repay loans; effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; inflation, securities market and monetary fluctuations; risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities, and interest rate protection agreements, as well as interest rate risks; difficulties in acquisitions and integrating and operating acquired business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; effects of technology changes; effects of general economic conditions and more specifically in the Corporation’s market areas; failure of assumptions underlying the establishment of reserves for credit losses and estimations of values of collateral and various financial assets and liabilities; acts of war or terrorism or geopolitical instability; disruption of credit and equity markets; ability to manage current levels of impaired assets; loss of certain key officers; ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s intellectual property rights; continued relationships with major customers; and, potential impacts to the Corporation from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses. Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of the Corporation's consolidated financial statements when filed with the SEC. Accordingly, the financial information in this announcement is subject to change. We caution readers not to place undue reliance on these forward-looking statements. They only reflect Management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Please also carefully review any Current Reports on Form 8-K filed by the Corporation with the SEC.

ACNB #2024-17
October 24, 2024

 
ACNB Corporation Financial Highlights
Selected Financial Data by Respective Quarter End
(Unaudited)
          
(Dollars in thousands, except per share data)September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
BALANCE SHEET DATA         
Assets$2,420,914  $2,457,753  $2,414,288  $2,418,847  $2,388,522 
Investment securities 483,604   483,868   490,626   517,221   501,063 
Total loans, net of unearned income 1,677,112   1,679,600   1,664,980   1,627,988   1,615,966 
Allowance for credit losses (17,214)  (17,162)  (20,172)  (19,969)  (19,264)
Deposits 1,791,317   1,838,588   1,835,224   1,861,813   1,951,359 
Allowance for unfunded commitments 1,349   1,310   1,569   1,719   1,962 
Borrowings 293,091   304,286   272,605   252,174   153,388 
Stockholders’ equity 306,755   289,331   279,920   277,461   255,638 
INCOME STATEMENT DATA         
Interest and dividend income$27,241  $26,869  $25,974  $25,284  $24,234 
Interest expense 6,299   5,905   5,381   3,791   2,489 
Net interest income 20,942   20,964   20,593   21,493   21,745 
Provision for (reversal of ) credit losses 81   (2,990)  223   786   250 
Provision for (reversal of) unfunded commitments 40   (259)  (151)  (242)  (171)
Net interest income after provisions for credit losses and unfunded commitments 20,821   24,213   20,521   20,949   21,666 
Noninterest income 6,833   6,427   5,667   970   6,297 
Noninterest expenses 18,244   16,391   17,662   17,173   16,336 
Income before income taxes 9,410   14,249   8,526   4,746   11,627 
Provision for income taxes 2,206   2,970   1,758   649   2,583 
Net income$7,204  $11,279  $6,768  $4,097  $9,044 
PROFITABILITY RATIOS         
Total loans, net of unearned income to deposits 93.62%  91.35%  90.72%  87.44%  82.81%
Return on average assets (annualized) 1.17   1.86   1.12   0.68   1.52 
Return on average equity (annualized) 9.63   16.12   9.76   6.09   13.84 
Efficiency ratio3 60.56   58.61   66.18   62.48   56.97 
FTE Net interest margin 3.77   3.82   3.77   3.93   4.01 
Yield on average earning assets 4.90   4.89   4.74   4.62   4.46 
Yield on investment securities 2.59   2.65   2.70   2.36   2.24 
Yield on total loans 5.56   5.53   5.37   5.29   5.16 
Cost of funds 1.19   1.12   1.02   0.71   0.47 
PER SHARE DATA         
Diluted earnings per share$0.84  $1.32  $0.80  $0.48  $1.06 
Cash dividends paid per share 0.32   0.32   0.30   0.30   0.28 
Tangible book value per share3 29.90   27.82   26.70   26.44   23.80 
Tangible book value per share3 (excluding AOCI)4 33.87   33.28   32.21   31.74   31.43 
CAPITAL RATIOS5         
Tier 1 leverage ratio 12.46%  12.25%  11.91%  11.57%  11.97%
Common equity tier 1 ratio 16.07   15.78   15.40   15.16   15.30 
Tier 1 risk based capital ratio 16.36   16.07   15.69   15.45   15.59 
Total risk based capital ratio 18.15   17.86   17.68   17.41   17.49 
CREDIT QUALITY         
Net charge-offs to average loans outstanding (annualized) 0.01%  0.00%  0.00%  0.02%  0.03%
Total non-performing loans to total loans, net of unearned income6 0.39   0.19   0.24   0.26   0.22 
Total non-performing assets to total assets7 0.29   0.14   0.18   0.19   0.17 
Allowance for credit losses to total loans, net of unearned income 1.03   1.02   1.21   1.23   1.19 
                    


 
Consolidated Balance Sheet
(Unaudited)
       
(Dollars in thousands, except per share data) September 30,
2024		 June 30,
2024		 March 31,
2024
ASSETS      
Cash and due from banks $24,636  $26,681  $17,395 
Interest-bearing deposits with banks  33,456   59,593   35,740 
Total Cash and Cash Equivalents  58,092   86,274   53,135 
Equity securities with readily determinable fair values  947   919   918 
Investment securities available for sale, at estimated fair value  418,079   418,364   425,114 
Investment securities held to maturity, at amortized cost (fair value $59,038, $57,026, and $58,084)  64,578   64,585   64,594 
Loans held for sale  1,080   1,801   88 
Total loans, net of unearned income  1,677,112   1,679,600   1,664,980 
Less: Allowance for credit losses  (17,214)  (17,162)  (20,172)
Loans, net  1,659,898   1,662,438   1,644,808 
Premises and equipment, net  25,542   25,760   25,916 
Right of use asset  2,110   2,278   2,447 
Restricted investment in bank stocks  10,853   11,853   10,877 
Investment in bank-owned life insurance  81,344   80,841   80,348 
Investments in low-income housing partnerships  909   940   971 
Goodwill  44,185   44,185   44,185 
Intangible assets, net  8,142   8,446   8,761 
Foreclosed assets held for resale  406   406   467 
Other assets  44,749   48,663   51,659 
Total Assets $2,420,914  $2,457,753  $2,414,288 
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Deposits:      
Noninterest-bearing $463,501  $479,726  $499,583 
Interest-bearing  1,327,816   1,358,862   1,335,641 
Total Deposits  1,791,317   1,838,588   1,835,224 
Short-term borrowings  37,769   48,974   17,303 
Long-term borrowings  255,322   255,312   255,302 
Lease liability  2,110   2,278   2,447 
Allowance for unfunded commitments  1,349   1,310   1,569 
Other liabilities  26,292   21,960   22,523 
Total Liabilities  2,114,159   2,168,422   2,134,368 
       
Stockholders’ Equity:      
Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding at September 30, 2024, June 30, 2024 and March 31, 2024  —   —   — 
Common stock, $2.50 par value; 20,000,000 shares authorized; 8,940,133, 8,934,495, and 8,928,441 shares issued; 8,548,625, 8,545,629, and 8,539,575 shares outstanding at September 30, 2024, June 30, 2024 and March 31, 2024, respectively  22,344   22,330   22,315 
Treasury stock, at cost; 391,508, at September 30, 2024, and 388,866 at both June 30, 2024 and March 31, 2024  (11,203)  (11,101)  (11,101)
Additional paid-in capital  98,697   98,230   97,818 
Retained earnings  230,752   226,271   217,712 
Accumulated other comprehensive loss  (33,835)  (46,399)  (46,824)
Total Stockholders’ Equity  306,755   289,331   279,920 
Total Liabilities and Stockholders’ Equity $2,420,914  $2,457,753  $2,414,288 
             


 
Consolidated Income Statements
(Unaudited)
    
 Three Months Ended
September 30,		 Nine Months Ended
September 30,
(Dollars in thousands, except per share data)2024
 2023 2024 2023
INTEREST AND DIVIDEND INCOME       
Loans, including fees       
Taxable$23,108  $20,285  $67,253  $58,130 
Tax-exempt 311   361   943   1,069 
Investment securities:       
Taxable 2,617   2,477   8,193   8,451 
Tax-exempt 284   284   852   883 
Dividends 251   104   739   196 
Other 670   723   2,104   2,627 
Total Interest and Dividend Income 27,241   24,234   80,084   71,356 
INTEREST EXPENSE       
Deposits 3,112   928   7,915   1,887 
Short-term borrowings 204   439   847   564 
Long-term borrowings 2,983   1,122   8,823   2,078 
Total Interest Expense 6,299   2,489   17,585   4,529 
Net Interest Income 20,942   21,745   62,499   66,827 
Provision for (reversal of) credit losses 81   250   (2,686)  74 
Provision for (reversal of) unfunded commitments 40   (171)  (370)  226 
Net Interest Income after Provisions for (Reversal of) Credit Losses and Unfunded Commitments 20,821   21,666   65,555   66,527 
NONINTEREST INCOME       
Insurance commissions 2,787   2,629   7,649   7,371 
Service charges on deposits 1,048   1,000   3,060   2,951 
Wealth management 1,188   953   3,219   2,772 
ATM debit card charges 828   845   2,488   2,502 
Earnings on investment in bank-owned life insurance 503   473   1,473   1,399 
Gain from mortgage loans held for sale 112   —   194   31 
Net gains (losses) on sales or calls of investment securities —   —   69   (739)
Net gains (losses) on equity securities 28   (27)  19   (22)
Gain on assets held for sale —   14   —   337 
Other 339   410   756   873 
Total Noninterest Income 6,833   6,297   18,927   17,475 
NONINTEREST EXPENSES       
Salaries and employee benefits 11,017   10,069   32,611   30,335 
Equipment 1,698   1,554   4,997   4,784 
Net occupancy 945   942   3,066   2,981 
Professional services 409   617   1,554   1,600 
FDIC and regulatory 365   388   1,088   932 
Other tax 360   323   1,086   965 
Intangible assets amortization 304   352   940   1,072 
Supplies and postage 236   229   610   633 
Marketing and corporate relations 99   159   275   472 
Merger-related 1,137   —   1,160   — 
Other 1,674   1,703   4,910   5,125 
Total Noninterest Expenses 18,244   16,336   52,297   48,899 
Income Before Income Taxes 9,410   11,627   32,185   35,103 
Provision for income taxes 2,206   2,583   6,934   7,512 
Net Income$7,204  $9,044  $25,251  $27,591 
PER SHARE DATA       
Basic earnings$0.85  $1.06  $2.97  $3.24 
Diluted earnings$0.84  $1.06  $2.96  $3.23 
Weighted average shares basic 8,507,140   8,517,917   8,500,860   8,518,006 
Weighted average shares diluted 8,545,578   8,551,545   8,532,691   8,544,732 
                


 
Average Balances, Income and Expenses, Yields and Rates
           
  Three months ended Three months ended Three months ended Three months ended Three months ended
  September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
(Dollars in thousands) Average
Balance		 Interest8 Yield/
Rate		 Average
Balance		 Interest8 Yield/
Rate		 Average
Balance		 Interest8 Yield/
Rate		 Average
Balance		 Interest8 Yield/
Rate		 Average
Balance		 Interest8 Yield/
Rate
ASSETS                              
Loans:                              
Taxable $1,618,879  $23,108  5.68% $1,612,380  $22,675  5.66% $1,573,109  $21,470  5.49% $1,559,411  $21,303  5.42% $1,520,134  $20,285  5.29%
Tax-exempt  62,401   394  2.51   64,276   396  2.48   65,825   404  2.47   69,058   425  2.44   73,995   457  2.45 
Total Loans9  1,681,280   23,502  5.56   1,676,656   23,071  5.53   1,638,934   21,874  5.37   1,628,469   21,728  5.29   1,594,129   20,742  5.16 
Investment Securities:                              
Taxable  441,135   2,868  2.59   442,390   2,913  2.65   467,466   3,151  2.71   453,713   2,669  2.33   466,402   2,581  2.20 
Tax-exempt  54,549   359  2.62   54,644   359  2.64   54,740   359  2.64   54,835   361  2.61   55,027   359  2.59 
Total Investments10  495,684   3,227  2.59   497,034   3,272  2.65   522,206   3,510  2.70   508,548   3,030  2.36   521,429   2,940  2.24 
Interest-bearing deposits with banks  48,794   670  5.46   50,851   684  5.41   54,156   750  5.57   50,225   691  5.46   53,324   723  5.38 
Total Earning Assets  2,225,758   27,399  4.90   2,224,541   27,027  4.89   2,215,296   26,134  4.74   2,187,242   25,449  4.62   2,168,882   24,405  4.46 
Cash and due from banks  21,684       21,041       20,540       21,578       23,783     
Premises and equipment  25,716       25,903       26,102       25,983       25,980     
Other assets  184,105       187,937       187,075       191,329       165,821     
Allowance for credit losses  (17,147)      (20,124)      (19,963)      (19,232)      (19,101)    
Total Assets $2,440,116      $2,439,298      $2,429,050      $2,406,900      $2,365,365     
LIABILITIES                              
Interest-bearing demand deposits $518,368  $552  0.42% $513,163  $275  0.22% $512,701  $264  0.21% $560,510  $275  0.19% $571,314  $185  0.13%
Money markets  246,653   692  1.12   248,191   613  0.99   248,297   536  0.87   274,226   707  1.02   245,899   312  0.50 
Savings deposits  318,291   26  0.03   327,274   30  0.04   335,215   29  0.03   348,244   28  0.03   366,398   30  0.03 
Time deposits  258,053   1,842  2.84   263,045   1,725  2.64   244,481   1,331  2.19   221,778   798  1.43   212,159   401  0.75 
Total Interest-Bearing Deposits  1,341,365   3,112  0.92   1,351,673   2,643  0.79   1,340,694   2,160  0.65   1,404,758   1,808  0.51   1,395,770   928  0.26 
Short-term borrowings  38,666   204  2.10   37,256   304  3.28   47,084   339  2.90   56,872   334  2.33   66,942   439  2.60 
Long-term borrowings  255,316   2,983  4.65   255,305   2,958  4.66   248,701   2,882  4.66   137,026   1,649  4.77   94,554   1,122  4.71 
Total Borrowings  293,982   3,187  4.31   292,561   3,262  4.48   295,785   3,221  4.38   193,898   1,983  4.06   161,496   1,561  3.83 
Total Interest-Bearing Liabilities  1,635,347   6,299  1.53   1,644,234   5,905  1.44   1,636,479   5,381  1.32   1,598,656   3,791  0.94   1,557,266   2,489  0.63 
Noninterest-bearing demand deposits  477,350       485,351       486,648       519,797       541,995     
Other liabilities  29,946       28,348       26,904       21,648       6,820     
Stockholders’ Equity  297,473       281,365       279,019       266,799       259,284     
Total Liabilities and Stockholders’ Equity $2,440,116      $2,439,298      $2,429,050      $2,406,900      $2,365,365     
Taxable Equivalent Net Interest Income    21,100       21,122       20,753       21,658       21,916   
Taxable Equivalent Adjustment    (158)      (158)      (160)      (165)      (171)  
Net Interest Income   $20,942      $20,964      $20,593      $21,493      $21,745   
Cost of Funds     1.19%     1.12%     1.02%     0.71%     0.47%
FTE Net Interest Margin     3.77%     3.82%     3.77%     3.93%     4.01%
                                    


 
Average Balances, Income and Expenses, Yields and Rates
    
 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023
(Dollars in thousands)Average
Balance		 Interest11 Yield/
Rate		 Average
Balance		 Interest11 Yield/
Rate
ASSETS           
Loans:           
Taxable$1,601,520  $67,253  5.61% $1,479,690  $58,130  5.25%
Tax-exempt 64,161   1,194  2.49   75,657   1,353  2.39 
Total Loans12 1,665,681   68,447  5.49   1,555,347   59,483  5.11 
Investment Securities:           
Taxable 450,297   8,932  2.65   507,061   8,647  2.28 
Tax-exempt 54,644   1,078  2.64   55,307   1,118  2.70 
Total Investments13 504,941   10,010  2.65   562,368   9,765  2.32 
Interest-bearing deposits with banks 51,258   2,104  5.48   71,645   2,627  4.90 
Total Earning Assets 2,221,880   80,561  4.84   2,189,360   71,875  4.39 
Cash and due from banks 21,091       30,891     
Premises and equipment 25,939       26,415     
Other assets 186,330       159,544     
Allowance for credit losses (19,071)      (18,807)    
Total Assets$2,436,169      $2,387,403     
LIABILITIES           
Interest-bearing demand deposits$514,757  $1,092  0.28% $580,180  $690  0.16%
Money markets 247,710   1,841  0.99   276,154   277  0.13 
Savings deposits 326,895   84  0.03   385,753   94  0.03 
Time deposits 255,203   4,898  2.56   234,951   826  0.47 
Total Interest-Bearing Deposits 1,344,565   7,915  0.79   1,477,038   1,887  0.17 
Short-term borrowings 40,993   847  2.76   47,852   564  1.58 
Long-term borrowings 253,116   8,823  4.66   58,333   2,078  4.76 
Total Borrowings 294,109   9,670  4.39   106,185   2,642  3.33 
Total Interest-Bearing Liabilities 1,638,674   17,585  1.43   1,583,223   4,529  0.38 
Noninterest-bearing demand deposits 483,095       550,206     
Other liabilities 28,406       (2,552)    
Stockholders’ Equity 285,994       256,526     
Total Liabilities and Stockholders’ Equity$2,436,169      $2,387,403     
Taxable Equivalent Net Interest Income   62,976       67,346   
Taxable Equivalent Adjustment   (477)      (519)  
Net Interest Income  $62,499      $66,827   
Cost of Funds    1.11%     0.28%
FTE Net Interest Margin    3.79%     4.11%
              

Non-GAAP Reconciliation
Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

  Three Months Ended
(Dollars in thousands, except per share data) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
Tangible book value per share          
Stockholders’ equity $306,755  $289,331  $279,920  $277,461  $255,638 
Less: Goodwill and intangible assets  (52,327)  (52,631)  (52,946)  (53,267)  (53,619)
Tangible common stockholders’ equity (numerator) $254,428  $236,700  $226,974  $224,194  $202,019 
Shares outstanding, less unvested shares, end of period (denominator)  8,510,187   8,507,191   8,501,137   8,478,460   8,488,446 
Tangible book value per share $29.90  $27.82  $26.70  $26.44  $23.80 
Tangible book value per share (excluding AOCI)          
Tangible common stockholders’ equity $254,428  $236,700  $226,974  $224,194  $202,019 
Less: AOCI  (33,835)  (46,399)  (46,824)  (44,909)  (64,767)
Tangible equity (excluding AOCI) $288,263  $283,099  $273,798  $269,103  $266,786 
Tangible book value per share (excluding AOCI) $33.87  $33.28  $32.21  $31.74  $31.43 
Tangible common equity to tangible assets (TCE/TA Ratio)          
Tangible common stockholders’ equity (numerator) $254,428  $236,700  $226,974  $224,194  $202,019 
Total assets $2,420,914  $2,457,753  $2,414,288  $2,418,847  $2,388,522 
Less: Goodwill and intangible assets  (52,327)  (52,631)  (52,946)  (53,267)  (53,619)
Total tangible assets (denominator) $2,368,587  $2,405,122  $2,361,342  $2,365,580  $2,334,903 
Tangible common equity to tangible assets  10.74%  9.84%  9.61%  9.48%  8.65%
Efficiency Ratio          
Noninterest expense $18,244  $16,391  $17,662  $17,173  $16,336 
Less: Intangible amortization  304   315   321   352   352 
Less: Merger-related expense  1,137   23   —   —   — 
Noninterest expense (numerator) $16,803  $16,053  $17,341  $16,821  $15,984 
Net interest income $20,942  $20,964  $20,593  $21,493  $21,745 
Plus: Total noninterest income  6,833   6,427   5,667   970   6,297 
Less: Net gains (losses) on sales or calls of securities  —   —   69   (4,501)  — 
Less: Net gains (losses) on equity securities  28   1   (10)  40   (27)
Less: Gain on assets held for sale  —   —   —   —   14 
Total revenue (denominator) $27,747  $27,390  $26,201  $26,924  $28,055 
Efficiency ratio  60.56%  58.61%  66.18%  62.48%  56.97%
                     

Non-GAAP Reconciliation

Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

(Dollars in thousands) Three Months Ended
September 30, 2024
Core return on average assets  
Net income $7,204 
Merger-related expense, net of taxes  879 
Core net income (numerator) $8,083 
Average assets (denominator) $2,440,116 
Core return on average assets  1.32%
   
Core return on average equity  
Core net income (numerator) $8,083 
Average equity (denominator) $297,473 
Core return on average equity  10.81%
     


1 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
2 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
3 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
4 Accumulated Other Comprehensive Loss.
5 Regulatory capital ratios as of September 30, 2024 are preliminary.
6 Non-performing Loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest.
7 Non-performing Assets consists of Non-performing Loans and Foreclosed assets held for resale.
8 Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate.
9 Average balances include non-accrual loans and are net of unearned income.
10 Average balances of investment securities is computed at fair value.
11 Income on interest-earning assets has been computed on a fully taxable equivalent basis (FTE) using the 21% federal income tax statutory rate.
12 Average balances include non-accrual loans and are net of unearned income.
13 Average balances of investment securities is computed at fair value.

  
Contact:Jason H. Weber
 EVP/Treasurer &
 Chief Financial Officer
 717.339.5090
 jweber@acnb.com
  

FAQ

What was ACNB's earnings per share in Q3 2024?

ACNB reported diluted earnings per share of $0.84 in Q3 2024, compared to $1.06 in Q3 2023.

How much was ACNB's merger-related expense in Q3 2024?

ACNB incurred $1.1 million in merger-related expenses due to the pending acquisition of Traditions Bancorp.

What is ACNB's quarterly dividend for Q4 2024?

ACNB declared a quarterly cash dividend of $0.32 per share, payable on December 13, 2024.

What was ACNB's total loan balance as of September 30, 2024?

ACNB's total loans outstanding were $1.68 billion as of September 30, 2024.

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ACNB Corp

NASDAQ:ACNB

ACNB Rankings

#3355 Ranked by Market Cap
#1063 Ranked by Dividends

ACNB Latest News

Oct 16, 2024
ACNB Corporation Announces Fourth Quarter Cash Dividend
Jul 24, 2024
ACNB Corporation Announces Strategic Acquisition of Traditions Bancorp, Inc.
Jul 24, 2024
ACNB Corporation Reports 2024 Second Quarter Financial Results
Jul 24, 2024
ACNB Corporation Announces Third Quarter Cash Dividend
May 9, 2024
ACNB Corporation Announces Election of Alexandra Chiaruttini to Board of Directors

ACNB Stock Data

359.13M
8.55M
4.24%
34.55%
2.46%
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