ACNB Corporation Reports 2025 First Quarter Financial Results

Rhea-AI Summary

ACNB (NASDAQ: ACNB) reported a net loss of $272,000 ($0.03 diluted loss per share) for Q1 2025, compared to net income of $6.8 million in Q1 2024. The results were impacted by the acquisition of Traditions Bancorp, effective February 1, 2025.

Key highlights include:

• Traditions contributed $877.7 million in assets, $648.5 million in loans, and $741.5 million in deposits
• FTE net interest margin increased to 4.07% in Q1 2025
• Allowance for credit losses rose to $24.6 million
• Board approved quarterly cash dividend increase of 6.3% to $0.34 per share
• Company repurchased 75,872 shares in open market transactions

The acquisition, valued at $83.8 million, expanded ACNB's footprint in York and Lancaster, Pennsylvania markets. Total loans outstanding reached $2.32 billion, while total deposits increased to $2.54 billion at the end of Q1 2025.

GETTYSBURG, Pa., April 24, 2025 (GLOBE NEWSWIRE) -- ACNB   Corporation   (NASDAQ:   ACNB)   (“ACNB”   or   the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced a net loss of $272 thousand, or $0.03 diluted loss per share, for the three months ended March 31, 2025 compared to net income of $6.8 million, or $0.80 diluted earnings per share, for the three months ended March 31, 2024 and compared to net income of $6.6 million, or $0.77 diluted earnings per share, for the three months ended December 31, 2024.

Financial results for the three months ended March 31, 2025 were impacted by two discrete items that were related to the acquisition of Traditions Bancorp, Inc. (“Traditions”): a provision for credit losses on non- purchase credit deteriorated (“PCD”) loans of $4.2 million, net of taxes, and merger-related expenses, net of taxes, totaling $6.2 million.

2025 First Quarter Highlights

• ACNB closed the acquisition of Traditions effective February 1, 2025 (“Acquisition”). This strategic acquisition will result in a premier community bank that is locally headquartered, managed, and focused.
• Traditions contributed, after acquisition accounting adjustments, $877.7 million in assets, $648.5 million in loans and $741.5 million in deposits at the Acquisition date.
• Fully taxable equivalent (“FTE”) net interest margin was 4.07% for the three months ended March 31, 2025 compared to 3.81% for the three months ended December 31, 2024 and 3.77% for the three months ended March 31, 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.5 million for the three months ended March 31, 2025.
  
• The allowance for credit losses was $24.6 million at March 31, 2025 compared to $17.3 million at December 31, 2024 and $20.2 million at March 31, 2024. The increases from both prior periods were driven primarily by an initial allowance for credit losses of $5.5 million for non-PCD loans and $1.5 million for accruing PCD loans at the Acquisition date.

• Tangible common equity to tangible assets ratio¹ of 9.33% at March 31, 2025 compared to 10.72% at December 31, 2024 and 9.61% at March 31, 2024. The net unrealized loss on the available for sale securities portfolio was $39.7 million at March 31, 2025 compared to a net unrealized loss of $47.7 million at December 31, 2024 and a net unrealized loss of $53.0 million at March 31, 2024.
• As announced on Form 8-K on April 23, 2025, the Board of Directors approved and declared a regular quarterly cash dividend of $0.34 per share of ACNB Corporation common stock for the second quarter, reflecting a $0.02, or 6.3%, increase over the same quarter of 2024. ACNB repurchased 75,872 shares of ACNB common stock in open market transactions during the three months ended March 31, 2025.

“At ACNB Corporation, we remain focused on executing our strategic plan to be the community bank of choice in the markets that we serve by building relationships and finding solutions for our customers. As a result, we are pleased to share our first quarter operating results. The quarter represents a solid start to a new year and exciting opportunities for our future,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

“We are pleased and excited to welcome Traditions Bancorp, Inc. shareholders, employees and customers to the ACNB family as we successfully completed our acquisition in the first quarter. In addition, at the close of the acquisition, three former Traditions directors, Eugene J, Draganosky, Elizabeth F. Carson and John M. Polli joined the Boards of Directors of ACNB Corporation and ACNB Bank. We believe this combination brings together organizations that are unified by a shared vision to banking to create an even stronger community bank and substantially enhance our presence in York and Lancaster counties.”

Mr. Helt continued, “We are cautiously optimistic for the remainder of 2025 in spite of the uncertain economic headwinds as a result of ongoing tariff turmoil. We are not only focused on the challenges, but also the exciting opportunities that lie ahead and are fully committed to the continued growth and profitability of ACNB Corporation and to enhancing long term shareholder value.”

Acquisition Update

During the first quarter of 2025, ACNB acquired Traditions, holding company for Traditions Bank, York, Pennsylvania. Traditions was merged with and into a wholly-owned subsidiary of ACNB Corporation immediately followed by the merger of Traditions Bank with and into ACNB Bank effective February 1, 2025. ACNB Bank is operating the former Traditions Bank offices as “Traditions Bank, A Division of ACNB Bank”. The acquisition method of accounting was used to account for the acquisition. ACNB recorded the assets and liabilities of Traditions at their respective fair values as of February 1, 2025. The transaction was valued at approximately $83.8 million and substantially expanded ACNB’s footprint in the York and Lancaster, Pennsylvania markets. Traditions contributed, after acquisition accounting adjustments, $877.7 million in assets, $648.5 million in loans and $741.5 million in deposits at the Acquisition date. The excess of the merger consideration over the fair value of Traditions assets acquired and liabilities assumed resulted in goodwill of $20.3 million.

As of March 31, 2025, total acquisition accounting adjustments on loans were $24.5 million. The majority of the loan acquisition accounting adjustments are expected to accrete back through as income as loans pay off or mature. Total acquisition accounting adjustments on time deposits were $226 thousand as of March 31, 2025. The acquisition accounting adjustments on time deposits are expected to amortize as an expense over the life of the time deposits. The core deposit intangible was $18.3 million as of March 31, 2025.

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¹ Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.

The core deposit intangible is expected to amortize as an expense over an expected life of 10 years using sum of the year’s digits method. The acquisition accounting adjustments are subject to refinement for up to one year from the acquisition date as allowable by U.S. Generally Accepted Accounting Principles (“GAAP”).

ACNB recorded an allowance for credit losses of $6.9 million at the Acquisition date, comprised of $5.5 million for non-PCD loans, which was recognized through the provision for credit losses, and $1.5 million for accruing PCD loans, which was recognized as an acquisition accounting adjustment to the amortized cost basis of the acquired loans.

ACNB completed, following the Acquisition date, the sale of approximately $98.0 million of Traditions’ investments with a yield of 5.03%. With the proceeds from the sale, ACNB paid off $40.2 million of Federal Home Loan Bank (“FHLB”) borrowings with a cost of 4.73% and invested the remainder of the proceeds into investment securities with a yield of 5.07%.

ACNB’s financial results for any periods ended prior to February 1, 2025 reflect ACNB on a standalone basis. As a result, ACNB’s financial results for the three months ended March 31, 2025 may not be directly comparable to prior reported periods.

Net Interest Income and Margin

Net interest income for the three months ended March 31, 2025 totaled $27.1 million, an increase of $6.5 million from the three months ended March 31, 2024 and an increase of $6.0 million from the three months ended December 31, 2024. The increases were driven primarily by the Acquisition. The FTE net interest margin for the three months ended March 31, 2025 was 4.07%, a 30 basis points increase from the three months ended March 31, 2024 and a 26 basis points increase from the three months ended December 31, 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.5 million for the three months ended March 31, 2025. For the three months ended March 31, 2025, total average loans increased $499.3 million compared to three months ended March 31, 2024 and increased $461.3 million compared to the three months ended December 31, 2024. The yield on total loans was 6.08% for the three months ended March 31, 2025, an increase of 71 basis points compared to the three months ended March 31, 2024 and an increase of 47 basis points from the three months ended December 31, 2024. The increases in total average loans and yields on total loans were driven primarily by the Acquisition. For the three months ended March 31, 2025, total average interest-bearing deposits increased $421.8 million from the three months ended March 31, 2024 and increased $406.8 million from the three months ended December 31, 2024. The average rate paid on interest-bearing deposits was 1.38% for the three months ended March 31, 2025, an increase of 73 basis points from the three months ended March 31, 2024 and an increase of 42 basis points from the three months ended December 31, 2024. The increases in average interest-bearing deposits and average rate paid on interest-bearing deposits were driven primarily by the Acquisition. For the three months ended March 31, 2025, total average noninterest-bearing demand deposits increased $26.3 million from the three months ended March 31, 2024 and increased $48.0 million from the three months ended December 31, 2024. The increase in total average noninterest-bearing demand deposits was driven primarily by the Acquisition.

Noninterest Income

Noninterest income for the three months ended March 31, 2025 was $7.2 million, an increase of $1.5 million from the three months ended March 31, 2024 and an increase of $1.4 million from the three months ended December 31, 2024. Gain from mortgage loans held for sale for the three months ended March 31, 2025 was $855 thousand, an increase $807 thousand from the three months ended March 31, 2024 and increase of $748 thousand from the three months ended December 31, 2024. Earnings on investment in bank-owned life insurance for the three months ended March 31, 2025 was $580 thousand, an increase of $103 thousand from the three months ended March 31, 2024 and increase of $74 thousand from the three months ended December 31, 2024. The increases in gain from mortgage loans held for sale and earnings on investment in bank-owned life insurance for three months ended March 31, 2025 compared to the three months ended March 31, 2024 and three months ended December 31, 2024 were driven primarily by the Acquisition. Wealth management income was $1.1 million for the three months ended March 31, 2025, an increase of $98 thousand from three months ended March 31, 2024 and an increase of $53 thousand from the three months ended December 31, 2024. The increases in wealth management income were driven primarily by increased sales activity and market performance. Gain on life insurance proceeds was $254 thousand for the three months ended March 31, 2025 as a result of a death benefit paid on a life insurance policy.

Noninterest Expense

Noninterest expense for the three months ended March 31, 2025 increased $11.7 million from the three months ended March 31, 2024 and increased $10.9 million from the three months ended December 31, 2024. The increases were driven primarily by the Acquisition. Merger-related expense totaled $8.0 million for the three months ended March 31, 2025 compared to none for the three months ended March 31, 2024 and $885 thousand for the three months ended December 31, 2024. Salaries and employee benefits expense increased $1.7 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and increased $2.5 million compared to three months ended December 31, 2024 driven primarily by higher base wages as a result of the Acquisition, higher restricted stock compensation and higher payroll taxes. Net occupancy increased $312 thousand for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and increased $346 thousand compared to three months ended December 31, 2024 driven primarily by the Acquisition and higher snow removal costs. Equipment expense increased $551 thousand for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 driven primarily by the Acquisition. Equipment expense decreased $44 thousand for the three months ended March 31, 2025 compared to the three months ended December 31, 2024 as the prior quarter included incremental expenses of $355 thousand for the purchase of office equipment related to Acquisition. Intangible assets amortization increased $536 thousand during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and increased $553 thousand compared to the three months ended December 31, 2024 driven by the Acquisition.

Loans and Asset Quality

Total loans outstanding were $2.32 billion at March 31, 2025, an increase of $639.3 million from December 31, 2024 and an increase of $657.2 million from March 31, 2024. The increases from both December 31, 2024 and March 31, 2024 were driven primarily by the Acquisition. The allowance for credit losses was $24.6 million at March 31, 2025, an increase of $7.4 million compared to December 31, 2024 and $4.5 million compared to March 31, 2024. The increase was driven primarily by an initial $5.5 million allowance for credit losses for non-PCD loans, which was recognized through the provision for credit losses, and a $1.5 million allowance for credit loss for accruing PCD loans, which was recognized as an acquisition accounting adjustment to the amortized cost basis of the acquired loans, at the Acquisition date. Reversal of $480 thousand was booked to unfunded commitments for the three months ended March 31, 2025 compared to a provision of $44 thousand and a reversal of $151 thousand for the three months ended December 31, 2024 and March 31, 2024, respectively.

Non-performing loans were $10.0 million, or 0.43%, of total loans, net of unearned income, at March 31, 2025 compared to $6.8 million, or 0.40%, of total loans at December 31, 2024 and $3.9 million, or 0.24%, of total loans at March 31, 2024. The increase in non-performing loans at March 31, 2025 compared to March 31, 2024 was driven primarily by 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 2024 and by the Acquisition. The increase in non-performing loans at March 31, 2025 compared to the three months ended December 31, 2024 was driven primarily by the Acquisition. Annualized net charge-offs for the three months ended March 31, 2025 were 0.01% of total average loans compared to 0.04% for the three months ended December 31, 2024 and 0.00% for the three months ended March 31, 2024.

Deposits and Borrowings

Total deposits totaled $2.54 billion at March 31, 2025, an increase of $747.5 million from December 31, 2024 and an increase of $704.8 million from March 31, 2024. Included in total deposits at March 31, 2025 were $1.98 billion of interest-bearing deposits, which increased $636.3 million from December 31, 2024 and increased $641.7 million from March 31, 2024. Time deposits, included in interest-bearing deposits, increased $204.1 million and $219.8 million since December 31, 2024 and March 31, 2024, respectively. In January 2025, ACNB Bank issued $20.0 million in brokered time deposits to offset seasonal fluctuations in commercial deposits during the quarter, and ACNB assumed, as a result of the Acquisition, $15.0 million of brokered time deposits of which $5.0 million matured in February 2025. Total noninterest-bearing deposits were $562.7 million at March 31, 2025 compared to $451.5 million at December 31, 2024 and $499.6 million at March 31, 2024. The increases in total deposits, interest-bearing deposits, time deposits and noninterest-bearing deposits were driven primarily by the Acquisition.

Total borrowings were $299.5 million at March 31, 2025, an increase of $28.4 million compared to December 31, 2024 and an increase of $26.9 million compared to March 31, 2024. The increases in total borrowings were driven primarily by general balance sheet management.

Stockholders’ Equity

Total stockholders’ equity was $386.9 million at March 31, 2025 compared to $303.3 million at December 31, 2024 and $279.9 million at March 31, 2024. The increase at March 31, 2025 compared to December 31, 2024 and March 31, 2025 was driven primarily by the equity issued in the Acquisition slightly offset by dividends paid of $3.4 million, common stock repurchased of $3.1 million and a $272 thousand net loss for the three months ended March 31, 2025. Tangible book value¹ per share was $28.23, $29.51 and $26.70 at March 31, 2025, December 31, 2024 and March 31, 2024, respectively. ACNB repurchased 75,872 shares of ACNB common stock in open market transactions during the three months ended March 31, 2025. As of March 31, 2025, there were 111,795 shares remaining under the current previously disclosed plan.

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¹ Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.

About ACNB Corporation

ACNB Corporation, headquartered in Gettysburg, PA, is the $3.27 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 33 community banking offices and one loan office 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, 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 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 #2025-10
April 24, 2025

ACNB Corporation Financial Highlights Selected Financial Data by Respective Quarter End (Unaudited)
(Dollars in thousands, except per share data)	March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
BALANCE SHEET DATA
Assets	$	3,270,041			$	2,394,830			$	2,420,914			$	2,457,753			$	2,414,288
Investment securities		521,306				459,472				483,604				483,868				490,626
Total loans, net of unearned income		2,322,209				1,682,910				1,677,112				1,679,600				1,664,980
Allowance for credit losses		(24,646	)			(17,280	)			(17,214	)			(17,162	)			(20,172	)
Deposits		2,540,009				1,792,501				1,791,317				1,838,588				1,835,224
Allowance for unfunded commitments		1,883				1,394				1,349				1,310				1,569
Borrowings		299,531				271,159				293,091				304,286				272,605
Stockholders’ equity		386,883				303,273				306,755				289,331				279,920
INCOME STATEMENT DATA
Interest and dividend income	$	36,290			$	27,381			$	27,241			$	26,869			$	25,974
Interest expense		9,200				6,269				6,299				5,905				5,381
Net interest income		27,090				21,112				20,942				20,964				20,593
Provision for (reversal of) credit losses		5,968				249				81				(2,990	)			223
(Reversal of) provision for unfunded commitments		(480	)			44				40				(259	)			(151	)
Net interest income after provisions for (reversal of) credit losses and unfunded commitments		21,602				20,819				20,821				24,213				20,521
Noninterest income		7,184				5,803				6,833				6,427				5,667
Noninterest expenses		29,335				18,388				18,244				16,391				17,662
(Loss) income before income taxes		(549	)			8,234				9,410				14,249				8,526
Income tax (benefit) expense		(277	)			1,639				2,206				2,970				1,758
Net (loss) income	$	(272	)		$	6,595			$	7,204			$	11,279			$	6,768
PROFITABILITY RATIOS
Total loans, net of unearned income to deposits		91.43		%		93.89		%		93.62		%		91.35		%		90.72		%
Return on average assets (annualized)		(0.04	)			1.08				1.17				1.86				1.12
Return on average equity (annualized)		(0.31	)			8.57				9.63				16.12				9.76
Efficiency ratio1		60.13				63.83				60.56				58.61				66.18
FTE Net interest margin		4.07				3.81				3.77				3.82				3.77
Yield on average earning assets		5.45				4.93				4.90				4.89				4.74
Yield on investment securities		2.91				2.58				2.59				2.65				2.70
Yield on total loans		6.08				5.61				5.56				5.53				5.37
Cost of funds		1.45				1.19				1.19				1.12				1.02
PER SHARE DATA
Diluted (loss) earnings per share	$	(0.03	)		$	0.77			$	0.84			$	1.32			$	0.80
Cash dividends paid per share		0.32				0.32				0.32				0.32				0.30
Tangible book value per share1		28.23				29.51				29.90				27.82				26.70
CAPITAL RATIOS2
Tier 1 leverage ratio		11.81		%		12.52		%		12.46		%		12.25		%		11.91		%
Common equity tier 1 ratio		13.65				16.27				16.07				15.78				15.40
Tier 1 risk based capital ratio		13.86				16.56				16.36				16.07				15.69
Total risk based capital ratio		15.45				18.36				18.15				17.86				17.68
CREDIT QUALITY
Net charge-offs to average loans outstanding (annualized)		0.01		%		0.04		%		0.01		%		0.00		%		0.00		%
Total non-performing loans to total loans, net of unearned income3		0.43				0.40				0.39				0.19				0.24
Total non-performing assets to total assets4		0.32				0.30				0.29				0.14				0.18
Allowance for credit losses to total loans, net of unearned income		1.06				1.03				1.03				1.02				1.21

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¹ Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.
² Regulatory capital ratios as of March 31, 2025 are preliminary.
³ Non-performing Loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest.
⁴ Non-performing Assets consists of Non-performing Loans and Foreclosed assets held for resale.

Consolidated Statements of Condition (Unaudited)
(Dollars in thousands, except per share data)	March 31, 2025			December 31, 2024			March 31, 2024
ASSETS
Cash and due from banks	$	23,422		$	16,352		$	17,395
Interest-bearing deposits with banks		100,141			30,910			35,740
Total Cash and Cash Equivalents		123,563			47,262			53,135
Equity securities with readily determinable fair values		933			919			918
Investment securities available for sale, at estimated fair value		455,819			393,975			425,114
Investment securities held to maturity, at amortized cost (fair value $56,219, $56,924 and $58,084)		64,554			64,578			64,594
Loans held for sale		21,413			426			88
Total loans, net of unearned income		2,322,209			1,682,910			1,664,980
Less: Allowance for credit losses		(24,646	)		(17,280	)		(20,172	)
Loans, net		2,297,563			1,665,630			1,644,808
Premises and equipment, net		32,398			25,454			25,916
Right of use asset		5,440			2,663			2,447
Restricted investment in bank stocks		13,560			10,853			10,877
Investment in bank-owned life insurance		98,814			81,850			80,348
Investments in low-income housing partnerships		846			877			971
Goodwill		64,449			44,185			44,185
Intangible assets, net		25,835			7,838			8,761
Foreclosed assets held for resale		438			438			467
Other assets		64,416			47,882			51,659
Total Assets	$	3,270,041		$	2,394,830		$	2,414,288
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	562,700		$	451,503		$	499,583
Interest-bearing		1,977,309			1,340,998			1,335,641
Total Deposits		2,540,009			1,792,501			1,835,224
Short-term borrowings		44,188			15,826			17,303
Long-term borrowings		255,343			255,333			255,302
Lease liability		5,790			2,764			2,447
Allowance for unfunded commitments		1,883			1,394			1,569
Other liabilities		35,945			23,739			22,523
Total Liabilities		2,883,158			2,091,557			2,134,368
Stockholders’ Equity:
Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding at March 31, 2025, December 31, 2024 and March 31, 2024		—			—			—
Common stock, $2.50 par value; 20,000,000 shares authorized; 11,011,051, 8,945,293, and 8,928,441 shares issued; 10,543,671, 8,553,785, and 8,539,575 shares outstanding at March 31, 2025, December 31, 2024 and March 31, 2024, respectively		27,521			22,357			22,315
Treasury stock, at cost; 467,380, 391,508, and 388,866 at March 31, 2025, December 31, 2024, and March 31, 2024, respectively		(14,309	)		(11,203	)		(11,101	)
Additional paid-in capital		178,011			99,163			97,818
Retained earnings		230,978			234,624			217,712
Accumulated other comprehensive loss		(35,318	)		(41,668	)		(46,824	)
Total Stockholders’ Equity		386,883			303,273			279,920
Total Liabilities and Stockholders’ Equity	$	3,270,041		$	2,394,830		$	2,414,288

Consolidated Income Statements (Unaudited)
	Three Months Ended March 31,
(Dollars in thousands, except per share data)		2025			2024
INTEREST AND DIVIDEND INCOME
Loans, including fees
Taxable	$	31,676		$	21,470
Tax-exempt		292			319
Investment securities:
Taxable		2,902			2,911
Tax-exempt		288			284
Dividends		340			240
Other		792			750
Total Interest and Dividend Income		36,290			25,974
INTEREST EXPENSE
Deposits		5,996			2,160
Short-term borrowings		294			339
Long-term borrowings		2,910			2,882
Total Interest Expense		9,200			5,381
Net Interest Income		27,090			20,593
Provision for credit losses		5,968			223
Reversal of provision for unfunded commitments		(480	)		(151	)
Net Interest Income after Provisions for (Reversal of) Credit Losses and Unfunded Commitments		21,602			20,521
NONINTEREST INCOME
Insurance commissions		2,147			2,115
Service charges on deposits		1,094			991
Wealth management		1,060			962
Gain from mortgage loans held for sale		855			48
ATM debit card charges		831			819
Earnings on investment in bank-owned life insurance		580			477
Gain on life insurance proceeds		254			—
Net gains on sales or calls of investment securities		—			69
Net gains (losses) on equity securities		14			(10	)
Other		349			196
Total Noninterest Income		7,184			5,667
NONINTEREST EXPENSES
Salaries and employee benefits		12,861			11,168
Equipment		2,280			1,729
Net occupancy		1,442			1,130
Professional services		577			616
Other tax		527			370
FDIC and regulatory		401			375
Intangible assets amortization		857			321
Merger-related		8,031			—
Other		2,359			1,953
Total Noninterest Expenses		29,335			17,662
(Loss) Income Before Income Taxes		(549	)		8,526
Income tax (benefit) expense		(277	)		1,758
Net (Loss) Income	$	(272	)	$	6,768
PER SHARE DATA
Basic (loss) earnings	$	(0.03	)	$	0.80
Diluted (loss) earnings	$	(0.03	)	$	0.80
Weighted average shares basic		9,806,299			8,493,104
Weighted average shares diluted		9,823,475			8,511,648

Average Balances, Income and Expenses, Yields and Rates
	Three months ended March 31, 2025												Three months ended December 31, 2024												Three months ended September 30, 2024												Three months ended June 30, 2024												Three months ended March 31, 2024
(Dollars in thousands)		Average Balance			Interest1					Yield/ Rate				Average Balance			Interest1					Yield/ Rate				Average Balance			Interest1					Yield/ Rate				Average Balance			Interest1					Yield/ Rate				Average Balance			Interest1					Yield/ Rate
ASSETS
Loans:
Taxable	$	2,080,231		$	31,676					6.18	%		$	1,619,245		$	23,294					5.72	%		$	1,618,879		$	23,108					5.68	%		$	1,612,380		$	22,675					5.66	%		$	1,573,109		$	21,470					5.49	%
Tax-exempt		57,969			370					2.59				57,683			366					2.52				62,401			394					2.51				64,276			396					2.48				65,825			404					2.47
Total Loans2		2,138,200			32,046					6.08				1,676,928			23,660					5.61				1,681,280			23,502					5.56				1,676,656			23,071					5.53				1,638,934			21,874					5.37
Investment Securities:
Taxable		447,986			3,242					2.93				431,338			2,786					2.57				441,135			2,868					2.59				442,390			2,913					2.65				467,466			3,151					2.71
Tax-exempt		54,659			365					2.71				54,453			359					2.62				54,549			359					2.62				54,644			359					2.64				54,740			359					2.64
Total Investments3		502,645			3,607					2.91				485,791			3,145					2.58				495,684			3,227					2.59				497,034			3,272					2.65				522,206			3,510					2.70
Interest-bearing deposits with banks		73,181			792					4.39				60,104			728					4.82				48,794			670					5.46				50,851			684					5.41				54,156			750					5.57
Total Earning Assets		2,714,026			36,445					5.45				2,222,823			27,533					4.93				2,225,758			27,399					4.90				2,224,541			27,027					4.89				2,215,296			26,134					4.74
Cash and due from banks		20,603												20,413												21,684												21,041												20,540
Premises and equipment		29,903												25,679												25,716												25,903												26,102
Other assets		224,522												181,180												184,105												187,937												187,075
Allowance for credit losses		(19,939	)											(17,153	)											(17,147	)											(20,124	)											(19,963	)
Total Assets	$	2,969,115											$	2,432,942											$	2,440,116											$	2,439,298											$	2,429,050
LIABILITIES
Interest-bearing demand deposits	$	573,341				$	524		0.37		%		$	519,833				$	511		0.39		%		$	518,368				$	552		0.42		%		$	513,163				$	275		0.22		%		$	512,701				$	264		0.21		%
Money markets		447,297					1,984		1.80					251,781					747		1.18					246,653					692		1.12					248,191					613		0.99					248,297					536		0.87
Savings deposits		331,103					27		0.03					315,512					34		0.04					318,291					26		0.03					327,274					30		0.04					335,215					29		0.03
Time deposits		410,749					3,461		3.42					268,559					1,987		2.94					258,053					1,842		2.84					263,045					1,725		2.64					244,481					1,331		2.19
Total Interest-Bearing Deposits		1,762,490					5,996		1.38					1,355,685					3,279		0.96					1,341,365					3,112		0.92					1,351,673					2,643		0.79					1,340,694					2,160		0.65
Short-term borrowings		38,721					294		3.08					23,087					12		0.21					38,666					204		2.10					37,256					304		3.28					47,084					339		2.90
Long-term borrowings		257,558					2,910		4.58					255,326					2,978		4.64					255,316					2,983		4.65					255,305					2,958		4.66					248,701					2,882		4.66
Total Borrowings		296,279					3,204		4.39					278,413					2,990		4.27					293,982					3,187		4.31					292,561					3,262		4.48					295,785					3,221		4.38
Total Interest-Bearing Liabilities		2,058,769					9,200		1.81					1,634,098					6,269		1.53					1,635,347					6,299		1.53					1,644,234					5,905		1.44					1,636,479					5,381		1.32
Noninterest-bearing demand deposits		512,966												464,949												477,350												485,351												486,648
Other liabilities		36,934												27,887												29,946												28,348												26,904
Stockholders’ Equity		360,446												306,008												297,473												281,365												279,019
Total Liabilities and Stockholders’ Equity	$	2,969,115											$	2,432,942											$	2,440,116											$	2,439,298											$	2,429,050
Taxable Equivalent Net Interest Income							27,245												21,264												21,100												21,122												20,753
Taxable Equivalent Adjustment							(155	)											(152	)											(158	)											(158	)											(160	)
Net Interest Income						$	27,090											$	21,112											$	20,942											$	20,964											$	20,593
Cost of Funds									1.45		%										1.19		%										1.19		%										1.12		%										1.02		%
FTE Net Interest Margin									4.07		%										3.81		%										3.77		%										3.82		%										3.77		%

________________________________________
¹ Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate.
² Average balances include non-accrual loans and are net of unearned income.
³ Average balances of investment securities is computed at fair value.

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)	March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
Tangible book value per share
Stockholders’ equity	$	386,883			$	303,273			$	306,755			$	289,331			$	279,920
Less: Goodwill and intangible assets		(90,284	)			(52,023	)			(52,327	)			(52,631	)			(52,946	)
Tangible common stockholders’ equity (numerator)	$	296,599			$	251,250			$	254,428			$	236,700			$	226,974
Shares outstanding, less unvested shares, end of period (denominator)		10,506,822				8,515,347				8,510,187				8,507,191				8,501,137
Tangible book value per share	$	28.23			$	29.51			$	29.90			$	27.82			$	26.70
Tangible common equity to tangible assets (TCE/TA Ratio)
Tangible common stockholders’ equity (numerator)	$	296,599			$	251,250			$	254,428			$	236,700			$	226,974
Total assets	$	3,270,041			$	2,394,830			$	2,420,914			$	2,457,753			$	2,414,288
Less: Goodwill and intangible assets		(90,284	)			(52,023	)			(52,327	)			(52,631	)			(52,946	)
Total tangible assets (denominator)	$	3,179,757			$	2,342,807			$	2,368,587			$	2,405,122			$	2,361,342
Tangible common equity to tangible assets		9.33		%		10.72		%		10.74		%		9.84		%		9.61		%
Efficiency Ratio
Noninterest expense	$	29,335			$	18,388			$	18,244			$	16,391			$	17,662
Less: Intangible amortization		857				304				304				315				321
Less: Merger-related expense		8,031				885				1,137				23				—
Noninterest expense (numerator)	$	20,447			$	17,199			$	16,803			$	16,053			$	17,341
Net interest income	$	27,090			$	21,112			$	20,942			$	20,964			$	20,593
Plus: Total noninterest income		7,184				5,803				6,833				6,427				5,667
Less: Gain on life insurance proceeds		254				—				—				—				—
Less: Net gains on sales or calls of securities		—				—				—				—				69
Less: Net gains (losses) on equity securities		14				(28	)			28				1				(10	)
Total revenue (denominator)	$	34,006			$	26,943			$	27,747			$	27,390			$	26,201
Efficiency ratio		60.13		%		63.83		%		60.56		%		58.61		%		66.18		%

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

FAQ

What caused ACNB's Q1 2025 net loss of $272,000?

The loss was primarily due to two items related to the Traditions Bancorp acquisition: a $4.2 million provision for credit losses on non-PCD loans and $6.2 million in merger-related expenses, both net of taxes.

How much did ACNB's quarterly dividend increase in Q1 2025?

ACNB increased its quarterly cash dividend by $0.02 (6.3%) to $0.34 per share compared to the same quarter in 2024.

What were the key financial metrics from ACNB's Traditions Bancorp acquisition?

The acquisition contributed $877.7 million in assets, $648.5 million in loans, and $741.5 million in deposits, with a total transaction value of approximately $83.8 million.

How did ACNB's loan portfolio perform in Q1 2025?

Total loans reached $2.32 billion, increasing by $639.3 million from December 2024, primarily driven by the Traditions acquisition. Non-performing loans were 0.43% of total loans.

What was ACNB's net interest margin in Q1 2025?

ACNB's fully taxable equivalent (FTE) net interest margin was 4.07%, up from 3.81% in Q4 2024 and 3.77% in Q1 2024.