ACNB Corporation Reports 2024 Third Quarter Financial Results
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.
- 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%
- 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
- Net interest margin compressed to
3.77% from4.01% YoY due to higher funding costs - Non-performing loans increased to
0.39% of total loans, up from0.19% 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
The bank's deposit dynamics reflect broader industry challenges, with total deposits declining
The strategic Traditions acquisition enhances market presence but comes with integration risks and expenses. The tangible book value improvement to
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
2024 Third Quarter Highlights
- Return on average assets was
1.17% and return on average equity was9.63% for the three months ended September 30, 2024. Core return on average assets1 was1.32% and core return on average equity1 was10.81% 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 to3.82% for the three months ended June 30, 2024 and4.01% 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 to0.19% at June 30, 2024 and0.22% 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 and0.00% for the three months ended June 30, 2024 compared to0.03% for the three months ended September 30, 2023.
- Tangible common equity to tangible assets ratio1 of
10.74% at September 30, 2024 compared to9.84% at June 30, 2024 and8.65% 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
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
Net interest income for the three months ended September 30, 2024 totaled
Noninterest Income
Noninterest income for the three months ended September 30, 2024 was
Noninterest income for the three months ended September 30, 2024 increased
Noninterest Expense
Noninterest expense for the three months ended September 30, 2024 was
Noninterest expense for the three months ended September 30, 2024 increased
Loans and Asset Quality
Total loans outstanding were
Asset quality metrics continue to be stable. The provision for credit losses was
Non-performing loans were
Deposits and Borrowings
Deposits totaled
Total borrowings were
Stockholders’ Equity, Dividends and Share Repurchases
Total stockholders’ equity was
As announced on Form 8-K on October 16, 2024, the Board of Directors approved and declared a regular quarterly cash dividend of
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
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 | 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, | — | — | — | |||||||||
| Common stock, | 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
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
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?
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