GETTYSBURG, Pa., April 23, 2026 (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 $13.7 million, or $1.32 diluted earnings per share, for the three months ended March 31, 2026 compared to net loss of $272 thousand, or $0.03 diluted loss per share, for the three months ended March 31, 2025 and compared to net income of $10.8 million, or $1.04 diluted earnings per share, for the three months ended December 31, 2025.
ACNB's 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. which was completed on February 1, 2025 ("Acquisition"): 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. Financial results for the three months ended March 31, 2025 include ACNB's standalone results for the month of January 2025. The financial results for the three months ended December 31, 2025 were impacted by an after-tax loss of $2.8 million due to the repositioning of the investment securities portfolio as announced on Form 8-K on December 5, 2025 and, to a lesser extent, after-tax merger-related expenses of $447 thousand.
2026 First Quarter Highlights
-- Return on average assets was 1.71% and return on average equity was
12.97% for the three months ended March 31, 2026
-- Fully taxable equivalent ("FTE") net interest margin was 4.46% for the
three months ended March 31, 2026 compared to 4.36% for the three months
ended December 31, 2025 and 4.07% for the three months ended March 31,
2025
-- Total loans outstanding were $2.35 billion at March 31, 2026, an increase
of 0.8% from December 31, 2025; annualized growth of 3.3%
-- Total noninterest-bearing deposits were $576.1 million at March 31, 2026,
an increase of 4.0% from December 31, 2025; annualized growth of 16.3%
-- Total non-performing loans to total loans, net of unearned income, was
0.41% at March 31, 2026 compared to 0.46% at December 31, 2025 and 0.43%
at March 31, 2025
-- Net recoveries to average loans outstanding were 0.00% for the three
months ended March 31, 2026 compared to net charge-offs of 0.02% for the
three months ended December 31, 2025 and net charge-offs of 0.01% for the
three months ended March 31, 2025
-- Tangible common equity to tangible assets ratio1 of 10.67% at March 31,
2026 compared to 10.60% at December 31, 2025 and 9.33% at March 31, 2025
-- ACNB repurchased 73,972 shares of ACNB common stock in open market
transactions for the three months ended March 31, 2026 at a weighted
average price of $47.54 per share. There are 123,099 shares remaining in
the current plan
"We are pleased to report a strong start to 2026, highlighted by solid profitability, stable asset quality, and continued balance sheet growth. Our results reflect the strength of our core relationship banking strategy, disciplined expense management, and consistent execution across the franchise." said James P. Helt, ACNB Corporation President and Chief Executive Officer.
"Loan growth was healthy during the quarter, supported by a solid pipeline and continued demand across our markets, while deposit growth remained robust and well-balanced, reinforcing our strong liquidity position. Importantly, credit quality metrics remained stable, with low levels of non-performing assets and net charge-offs, underscoring the effectiveness of our conservative underwriting approach."
Mr. Helt continued, "We also maintained strong capital levels, providing both financial flexibility and a solid foundation to support future growth. As we move further into 2026, we remain focused on delivering sustainable earnings, maintaining disciplined risk management, and creating long-term value for our shareholders."
Net Interest Income and Margin
Net interest income for the three months ended March 31, 2026 totaled $32.5 million, an increase of $5.4 million from the three months ended March 31, 2025 and a decrease of $336 thousand from the three months ended December 31, 2025. The FTE net interest margin for the three months ended March 31, 2026 was 4.46%, a 39 basis points increase from the three months ended March 31, 2025 and a 10 basis points increase from the three months ended December 31, 2025.
The increase in net interest income and FTE net interest margin compared to the three months ended March 31, 2025 was driven primarily by the balance sheet restructuring completed during the three months ended December 31, 2025, the Acquisition and new loans and securities funded during the quarter at higher rates than those that paid off or matured. The FTE yield on total investment securities was 3.66% for the three months ended March 31, 2026, an increase of 75 basis points compared to the three months ended March 31, 2025. Increases in average balances and yields compared to the same period of the prior year were driven primarily by the impact of the Acquisition. For the three months ended March 31, 2026, total average loans increased $208.6 million, or 9.8%, compared to the three months ended March 31, 2025. The FTE yield on total loans was 6.35% for the three months ended March 31, 2026, an increase of 27 basis points compared to the three months ended March 31, 2025. For the three months ended March 31, 2026, total average interest-bearing deposits increased $151.8 million, or 8.6%, from the three months ended March 31, 2025. The average rate paid on interest-bearing deposits was 1.35% for the three months ended March 31, 2026, a decrease of 3 basis points from the three months ended March 31, 2025. For the three months ended March 31, 2026, total average noninterest-bearing demand deposits increased $41.6 million, or 8.1%, from the three months ended March 31, 2025 driven primarily by the Acquisition and promotional incentives on commercial checking accounts.
The decrease in net interest income compared to the three months ended December 31, 2025 was driven primarily by fewer days of interest accruals and, to a lesser extent, the decrease in total average earning assets of $27.6 million, or 0.9%. The decrease in interest-earning assets was driven primarily by lower invested cash balances due to the seasonal decline in the balance of one commercial deposit account as well as lower average loans held for sale and loans held for investment. While average loan balances declined, total loans increased as a result of loan closings that occurred at the end of the three months ended March 31, 2026. The FTE net interest margin increased 10 basis points compared to the three months ended December 31, 2025 driven primarily by the impact of the balance sheet restructuring completed during the three months ended December 31, 2025. The FTE yield on total investment securities increased 49 basis points compared to the three months ended December 31, 2025. For the three months ended March 31, 2026, total average interest-bearing deposits increased $3.4 million, or 0.2%, from the three months ended December 31, 2025. The average rate paid on interest-bearing deposits decreased 1 basis point from the three months ended December 31, 2025. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.9 million, $1.5 million and $1.9 million for the three months ended March 31, 2026, the three months ended March 31, 2025 and the three months ended December 31, 2025, respectively.
_____________________
(1) Non-GAAP financial measure. Please refer to the calculation on the page titled "Non-GAAP Reconciliation" at the end of this document.
Noninterest Income
Noninterest income for the three months ended March 31, 2026 was $8.3 million, an increase of $1.1 million and $3.9 million from the three months ended March 31, 2025 and the three months ended December 31, 2025, respectively. The increase compared to the three months ended March 31, 2025 was driven primarily by the Acquisition and compared to the three months ended December 31, 2025 was driven primarily by the repositioning of the investment securities portfolio, which generated a $3.6 million pre-tax loss on the sale of investment securities. Gain from mortgage loans held for sale for the three months ended March 31, 2026 was $1.2 million, an increase of $371 thousand from the three months ended March 31, 2025 driven primarily by the Acquisition. Earnings on investment in bank-owned life insurance was $737 thousand for the three months ended March 31, 2026, a $157 thousand increase from the three months ended March 31, 2025 driven primarily by the purchase of new policies in the third quarter of 2025 and the Acquisition. The sale of a building contributed a $177 thousand gain on assets held for sale and a death benefit contributed a $174 thousand gain on life insurance proceeds for the three months ended March 31, 2026. Service charges on deposits totaled $1.2 million, a $141 thousand increase compared to the three months ended March 31, 2025 driven primarily by the Acquisition. Wealth management income was $1.2 million, a $100 thousand increase compared to the three months ended March 31, 2025 driven primarily by growth of fee-based assets under management/ administration. Other totaled $489 thousand, a $140 thousand increase primarily attributable to a gain on a loan sale compared to the three months ended March 31, 2025.
Excluding the net gains (losses) on sales or calls of investment securities, the increase in noninterest income compared to the three months ended December 31, 2025 was impacted by a gain on life insurance proceeds of $174 thousand and the gain on assets held for sale of $177 thousand. Insurance commissions were $2.1 million, a $246 thousand increase compared to the three months ended December 31, 2025 driven primarily by higher renewals and the policy cancellation of a customer in the prior quarter. Partially offsetting the increase in noninterest income were lower gains from mortgage loans held for sale, service charges on deposits and ATM debit charges primarily driven by seasonality.
Noninterest Expense
Noninterest expense for the three months ended March 31, 2026 was $23.6 million, a decrease of $5.7 million from the three months ended March 31, 2025, driven primarily by the Acquisition, and an increase of $162 thousand from the three months ended December 31, 2025. Merger-related expenses totaled $8.0 million for the three months ended March 31, 2025 and $575 thousand for the three months ended December 31, 2025 compared to no merger-related expenses for the three months ended March 31, 2026. Salaries and employee benefits expense for the three months ended March 31, 2026 increased $1.2 million and $1.0 million compared to the three months ended March 31, 2025 and the three months ended December 31, 2025, respectively. The increase from the three months ended March 31, 2025 was driven primarily by additional employees attributable to the Acquisition as well as merit increases. The increase from the three months ended December 31, 2025 was driven primarily by seasonal expenses of $600 thousand related to incentive stock awards and $270 thousand related to ACNB's liability for unused vacation days, which was driven primarily by headcount increases due to the Acquisition.
Equipment expense increased $320 thousand and $244 thousand from the three months ended March 31, 2025 and the three months ended December 31, 2025, respectively, driven primarily by the Acquisition and the implementation of additional products into our core processing system compared to the three months ended March 31, 2025 and higher core processing and hardware expense compared to the three months ended December 31, 2025. Net occupancy for the three months ended March 31, 2026 increased $91 thousand and $292 thousand compared to the three months ended March 31, 2025 and the three months ended December 31, 2025, respectively. The increase compared to the three months ended March 31, 2025 was driven primarily by the Acquisition, and the increase compared to the three months ended December 31, 2025 was driven primarily by seasonally higher snow removal and utility expenses.
Professional services increased $101 thousand and decreased $74 thousand compared to the three months ended March 31, 2025 and the three months ended December 31, 2025, respectively. The increase compared to the three months ended March 31, 2025 was driven primarily by the higher professional services for software integration and legal fees, and the decrease from the three months ended December 31, 2025 was driven primarily by higher consulting fees in 2025. Intangible assets amortization increased $199 thousand compared to the three months ended March 31, 2025 and decreased $74 thousand compared to the three months ended December 31, 2025. The increase was a result of the Acquisition and the decrease was a result of normal attrition. Other increased $343 thousand compared to the three months ended March 31, 2025 and decreased $666 thousand for the three months ended December 31, 2025. The increase from the three months ended March 31, 2025 was driven primarily by higher internet banking expenses and supplies and postage, and the decrease was driven primarily by a $475 thousand write-off of legacy accounts receivable at the insurance subsidiary and higher mortgage underwriting and software expenses during the three months ended December 31, 2025.
Loans and Asset Quality
Total loans outstanding were $2.35 billion at March 31, 2026, an increase of $18.7 million from December 31, 2025 and an increase of $27.0 million from March 31, 2025. The increase compared to December 31, 2025 was driven primarily by growth in the commercial real estate portfolio and was partially offset by a decrease in real estate construction. The growth in commercial real estate was spread across a variety of industries, including non-owner occupied apartment complex, owner occupied and non-owner occupied farming, non-owner occupied warehouse and owner occupied office complex categories. The allowance for credit losses was $23.6 million at March 31, 2026, a decrease of $57 thousand compared to December 31, 2025 and a decrease of $1.0 million compared to March 31, 2025. The decrease compared to December 31, 2025 was driven primarily by the movement of higher risk rated construction loans to lower risk rated commercial real estate loans and the paydowns of loans with a specific reserve partially offset by loan growth. The decrease compared to March 31, 2025 was driven primarily by the incorporation of post-COVID lower credit loss history in the bank's allowance for credit losses model. Total non-performing loans to total loans, net of unearned income, decreased to 0.41% as of March 31, 2026, from 0.46% and 0.43% at December 31, 2025 and March 31, 2025, respectively. The decreases from December 31, 2025 and March 31, 2025 were driven by payments received on nonperforming loans.
Deposits and Borrowings
Total deposits were $2.53 billion at March 31, 2026, an increase of $75.6 million from December 31, 2025 and a decrease of $14.2 million from March 31, 2025. Included in total deposits at March 31, 2026 were $576.1 million of noninterest-bearing deposits, which increased $22.2 million and $13.4 million from December 31, 2025 and March 31, 2025, respectively, driven primarily by growth in commercial balances due to promotional incentives on commercial checking accounts. Total interest-bearing deposits were $1.95 billion at March 31, 2026, an increase of $53.4 million from December 31, 2025 and a decrease of $27.6 million from March 31, 2025. Money markets, included in interest-bearing deposits, increased $11.2 million since December 31, 2025 and decreased $52.7 million since March 31, 2025. The increase in money market deposits from December 31, 2025 was driven primarily by growth in balances of both consumer and commercial accounts and the decrease from March 31, 2025 was driven primarily by attrition of higher cost money market deposits from the Acquisition. Time deposits increased $35.6 million and $11.4 million since December 31, 2025 and March 31, 2025, respectively. Included in time deposits were $89.1 million brokered time deposits, an increase of $30.0 million from December 31, 2025 and $35.0 million from March 31, 2025, respectively.
Total borrowings were $279.2 million at March 31, 2026, a decrease of $40.9 million and $20.3 million compared to December 31, 2025 and March 31, 2025, respectively. On February 27, 2026, the Corporation paid off a $40.0 million FHLB 4.99% fixed rate advance as a result of excess liquidity during the quarter.
Stockholders' Equity
Total stockholders' equity was $425.5 million at March 31, 2026 compared to $420.0 million at December 31, 2025 and $386.9 million at March 31, 2025. The increase at March 31, 2026 compared to December 31, 2025 was driven primarily by net income of $13.7 million partially offset by dividends paid of $3.9 million, common stock repurchases of $3.6 million, and a $1.3 million change in unrealized losses in available for sale investment securities. The increase at March 31, 2026 compared to March 31, 2025 was driven primarily by growth in retained earnings and a change in unrealized losses in available for sale investment securities. Tangible book value1 per share was $32.99, $32.22 and $28.23 at March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
_____________________
(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 independent $3.27 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, including its operating divisions Traditions Bank and Traditions Mortgage, 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 two loan offices located in the Pennsylvania counties of Adams, Berks, 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 #2026-02
April 23, 2026
ACNB Corporation Financial Highlights
Selected Financial Data by Respective Quarter End
(Unaudited)
(Dollars in thousands,
except per share data) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
-------------------------- -------------------------- -------------------------- -------------------------- -----------------------------
BALANCE SHEET DATA
Total assets $ 3,269,864 $ 3,228,126 $ 3,250,838 $ 3,259,528 $ 3,270,041
Investment
securities 535,760 531,131 526,570 520,758 521,306
Total loans, net of
unearned income 2,349,245 2,330,514 2,336,605 2,341,816 2,322,209
Allowance for
credit losses (23,615) (23,672) (23,660) (24,353) (24,646)
Deposits 2,525,772 2,450,185 2,465,896 2,524,541 2,540,009
Allowance for
unfunded
commitments 1,818 1,831 1,384 1,529 1,883
Borrowings 279,215 320,116 335,833 298,395 299,531
Stockholders'
equity 425,476 419,974 408,642 395,151 386,883
INCOME STATEMENT DATA
Interest and
dividend income $ 42,232 $ 42,856 $ 42,490 $ 41,576 $ 36,290
Interest expense 9,717 10,005 10,353 10,564 9,200
-------------------------- -------------------------- -------------------------- -------------------------- -----------------------------
Net interest income 32,515 32,851 32,137 31,012 27,090
(Reversal of)
provision for
credit losses (76) 106 (584) (228) 5,968
(Reversal of)
provision for
unfunded
commitments (13) 447 (145) (354) (480)
-------------------------- -------------------------- -------------------------- -------------------------- -----------------------------
Net interest income
after (reversal
of) provisions for
credit losses and
unfunded
commitments 32,604 32,298 32,866 31,594 21,602
Noninterest income 8,274 4,332 8,411 8,682 7,184
Noninterest
expenses 23,615 23,453 22,361 25,366 29,335
-------------------------- -------------------------- -------------------------- -------------------------- -----------------------------
Income (loss)
before income
taxes 17,263 13,177 18,916 14,910 (549)
Income tax expense
(benefit) 3,560 2,372 4,046 3,262 (277)
-------------------------- -------------------------- -------------------------- -------------------------- -----------------------------
Net income (loss) $ 13,703 $ 10,805 $ 14,870 $ 11,648 $ (272)
========================= ========================= ========================= ========================= ============================
PROFITABILITY RATIOS
Total loans, net of
unearned income to
deposits 93.01 % 95.12 % 94.76 % 92.76 % 91.43 %
Return on average
assets
(annualized) 1.71 1.30 1.80 1.43 (0.04)
Return on average
equity
(annualized) 12.97 10.31 14.66 11.96 (0.31)
Efficiency ratio1 55.84 53.39 51.96 56.21 60.13
FTE Net interest
margin 4.46 4.36 4.27 4.21 4.07
Yield on average
earning assets 5.78 5.69 5.64 5.64 5.45
Yield on investment
securities 3.66 3.17 3.03 2.95 2.91
Yield on total
loans 6.35 6.33 6.29 6.29 6.08
Cost of funds 1.41 1.40 1.45 1.50 1.45
PER SHARE DATA
Diluted earnings
(loss) per share $ 1.32 $ 1.04 $ 1.42 $ 1.11 $ (0.03)
Cash dividends paid
per share 0.38 0.38 0.34 0.34 0.32
Tangible book value
per share1 32.99 32.22 30.87 29.30 28.23
CAPITAL RATIOS2
Tier 1 leverage
ratio 11.74 % 11.40 % 11.22 % 10.97 % 11.81 %
Common equity tier
1 ratio 14.92 14.74 14.45 13.96 13.65
Tier 1 risk based
capital ratio 15.14 14.96 14.67 14.17 13.86
Total risk based
capital ratio 16.73 16.54 16.22 15.75 15.45
CREDIT QUALITY
Net (recoveries)
charge-offs to
average loans
outstanding
(annualized) (0.00)% 0.02 % 0.02 % 0.01 % 0.01 %
Total
non-performing
loans to total
loans, net of
unearned income3 0.41 0.46 0.43 0.43 0.43
Total
non-performing
assets to total
assets4 0.29 0.33 0.31 0.31 0.32
Allowance for
credit losses to
total loans, net
of unearned
income 1.01 1.02 1.01 1.04 1.06
(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, 2026 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, 2026 December 31, 2025 March 31, 2025
------------------------- ------------------------- -------------------------
ASSETS
Cash and due from
banks $ 25,649 $ 20,611 $ 23,422
Interest-bearing
deposits with banks 67,986 45,037 100,141
------------------------- ------------------------- -------------------------
Total Cash and Cash
Equivalents 93,635 65,648 123,563
Equity securities with
readily determinable
fair values 942 949 933
Investment securities
available for sale,
at estimated fair
value 471,659 466,894 455,819
Investment securities held to maturity, at amortized
cost (fair value
$56,248, $57,537 and
$56,219) 63,159 63,288 64,554
Loans held for sale 15,155 28,170 21,413
Total loans, net of
unearned income 2,349,245 2,330,514 2,322,209
Less: Allowance for
credit losses (23,615) (23,672) (24,646)
------------------------- ------------------------- -------------------------
Loans, net 2,325,630 2,306,842 2,297,563
Premises and
equipment, net 30,373 30,648 32,398
Right of use asset 4,053 4,155 5,440
Restricted investment
in bank stocks 12,574 14,237 13,560
Investment in
bank-owned life
insurance 105,667 105,840 98,814
Investments in
low-income housing
partnerships 720 751 846
Goodwill 64,449 64,449 64,449
Intangible assets, net 21,379 22,435 25,835
Assets held for sale -- 275 --
Other assets 60,469 53,545 64,854
------------------------- ------------------------- -------------------------
Total Assets $ 3,269,864 $ 3,228,126 $ 3,270,041
======================== ======================== ========================
LIABILITIES AND
STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing $ 576,056 $ 553,855 $ 562,700
Interest-bearing 1,949,716 1,896,330 1,977,309
------------------------- ------------------------- -------------------------
Total Deposits 2,525,772 2,450,185 2,540,009
Short-term borrowings 63,828 64,740 44,188
Long-term borrowings 215,387 255,376 255,343
Lease liability 4,352 4,451 5,790
Allowance for unfunded
commitments 1,818 1,831 1,883
Other liabilities 33,231 31,569 35,945
------------------------- ------------------------- -------------------------
Total Liabilities 2,844,388 2,808,152 2,883,158
========================= ========================= =========================
Stockholders' Equity:
Preferred Stock,
$2.50 par value,
20,000,000 shares
authorized; no
shares outstanding
at March 31, 2026,
December 31, 2025
and March 31, 2025 -- -- --
Common stock, $2.50
par value,
20,000,000 shares
authorized;
11,068,063,
11,028,152, and
11,011,051 shares
issued; 10,338,190,
10,372,251, and
10,543,671 shares
outstanding at
March 31, 2026,
December 31, 2025
and March 31, 2025,
respectively 27,664 27,564 27,521
Treasury stock, at
cost, 729,873,
655,901, and 467,380
at March 31,
2026, December 31,
2025, and March 31,
2025, respectively (25,927) (22,367) (14,309)
Additional paid-in
capital 180,132 179,658 178,011
Retained earnings 267,066 257,293 230,978
Accumulated other
comprehensive loss (23,459) (22,174) (35,318)
------------------------- ------------------------- -------------------------
Total Stockholders'
Equity 425,476 419,974 386,883
------------------------- ------------------------- -------------------------
Total Liabilities
and Stockholders'
Equity $ 3,269,864 $ 3,228,126 $ 3,270,041
======================== ======================== ========================
Consolidated Income (Loss) Statements
(Unaudited)
Three Months Ended
---------------------------------------------------------------------------------------------
(Dollars in thousands,
except per share data) March 31, 2026 December 31, 2025 March 31, 2025
------------------------------------ -------------------------- ---------------------------
INTEREST AND DIVIDEND
INCOME
Loans, including fees:
Taxable $ 36,302 $ 37,293 $ 31,676
Tax-exempt 338 343 292
Investment securities:
Taxable 4,241 3,580 2,902
Tax-exempt 314 297 288
Dividends 334 320 340
Other 703 1,023 792
------------------------------------ -------------------------- ---------------------------
Total Interest and
Dividend Income 42,232 42,856 36,290
------------------------------------ -------------------------- ---------------------------
INTEREST EXPENSE
Deposits 6,387 6,547 5,996
Short-term borrowings 563 491 294
Long-term borrowings 2,767 2,967 2,910
------------------------------------ -------------------------- ---------------------------
Total Interest Expense 9,717 10,005 9,200
------------------------------------ -------------------------- ---------------------------
Net Interest Income 32,515 32,851 27,090
(Reversal of) provision
for credit losses (76) 106 5,968
(Reversal of) provision
for unfunded
commitments (13) 447 (480)
------------------------------------ -------------------------- ---------------------------
Net Interest Income
after (Reversal of)
Provisions for Credit
Losses and Unfunded
Commitments 32,604 32,298 21,602
------------------------------------ -------------------------- ---------------------------
NONINTEREST INCOME
Insurance commissions 2,128 1,882 2,147
Gain from mortgage loans
held for sale 1,226 1,373 855
Service charges on
deposits 1,235 1,282 1,094
Wealth management 1,160 1,200 1,060
ATM debit card charges 906 923 831
Earnings on investment in
bank-owned life
insurance 737 735 580
Gain on assets held for
sale 177 -- --
Gain on life insurance
proceeds 174 -- 254
Other 489 490 349
Net gains (losses) on
sales or calls of
investment securities 49 (3,557) --
Net (losses) gains on
equity securities (7) 4 14
------------------------------------ -------------------------- ---------------------------
Total Noninterest
Income 8,274 4,332 7,184
------------------------------------ -------------------------- ---------------------------
NONINTEREST EXPENSES
Salaries and employee
benefits 14,027 13,034 12,861
Equipment 2,600 2,356 2,280
Net occupancy 1,533 1,241 1,442
Intangible assets
amortization 1,056 1,130 857
Professional services 678 752 577
Other tax 577 539 527
FDIC and regulatory 442 458 401
Merger-related -- 575 8,031
Other 2,702 3,368 2,359
------------------------------------ -------------------------- ---------------------------
Total Noninterest
Expenses 23,615 23,453 29,335
------------------------------------ -------------------------- ---------------------------
Income (Loss) Before
Income Taxes 17,263 13,177 (549)
Income tax expense
(benefit) 3,560 2,372 (277)
------------------------------------ -------------------------- ---------------------------
Net Income (Loss) $ 13,703 $ 10,805 $ (272)
===== ============================= ========================= ==========================
PER SHARE DATA
Basic earnings (loss) $ 1.32 $ 1.04 $ (0.03)
Diluted earnings (loss) $ 1.32 $ 1.04 $ (0.03)
Weighted average shares
basic 10,348,531 10,351,613 9,806,299
Weighted average shares
diluted 10,366,230 10,386,137 9,823,475
Average Balances, Income and Expenses, Yields and Rates
Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended
March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
Average Yield/ Average Yield/ Average Yield/ Average Yield/ Average Yield/
(Dollars in thousands) Balance Interest(1) Rate Balance Interest(1) Rate Balance Interest(1) Rate Balance Interest(1) Rate Balance Interest(1) Rate
---------- -------------- -------- ---------- -------------- -------- ----------- -------------- -------- ----------- -------------- -------- ----------- -------------- --------
ASSETS
Loans:
Taxable $2,290,463 $ 36,302 6.43 % $2,305,296 $ 37,293 6.42 % $ 2,298,054 $ 36,961 6.38 % $ 2,296,429 $ 36,555 6.38 % $ 2,080,231 $ 31,676 6.18 %
Tax-exempt 56,344 428 3.08 58,740 434 2.93 58,587 410 2.78 58,903 401 2.73 57,969 370 2.59
---------- -------------- ---------- -------------- ----------- -------------- ----------- -------------- ----------- --------------
Total Loans2 2,346,807 36,730 6.35 2,364,036 37,727 6.33 2,356,641 37,371 6.29 2,355,332 36,956 6.29 2,138,200 32,046 6.08
Investment Securities:
Taxable 494,221 4,575 3.75 480,987 3,900 3.22 485,309 3,762 3.08 482,933 3,590 2.98 447,986 3,242 2.93
Tax-exempt 56,036 397 2.87 54,518 376 2.74 53,165 356 2.66 54,261 358 2.65 54,659 365 2.71
---------- -------------- ---------- -------------- ----------- -------------- ----------- -------------- ----------- --------------
Total Investments3 550,257 4,972 3.66 535,505 4,276 3.17 538,474 4,118 3.03 537,194 3,948 2.95 502,645 3,607 2.91
Interest-bearing deposits
with banks 76,769 703 3.71 101,846 1,023 3.99 103,290 1,162 4.46 77,348 831 4.31 73,181 792 4.39
---------- -------------- ---------- -------------- ----------- -------------- ----------- -------------- ----------- --------------
Total Earning Assets 2,973,833 42,405 5.78 3,001,387 43,026 5.69 2,998,405 42,651 5.64 2,969,874 41,735 5.64 2,714,026 36,445 5.45
Cash and due from banks 24,482 25,686 26,709 25,610 20,603
Premises and equipment 30,611 31,297 31,514 32,019 29,903
Other assets 249,769 250,508 245,899 255,624 224,522
Allowance for credit losses (23,682) (23,646) (24,312) (24,615) (19,939)
---------- ---------- ----------- ----------- -----------
Total Assets $3,255,013 $3,285,232 $ 3,278,215 $ 3,258,512 $ 2,969,115
LIABILITIES
Interest-bearing demand
deposits $ 616,311 $ 460 0.30 % $ 633,593 $ 545 0.34 % $ 616,565 $ 570 0.37 % $ 612,812 $ 514 0.34 % $ 573,341 $ 524 0.37 %
Money markets 489,957 2,227 1.84 491,932 2,322 1.87 510,655 2,530 1.97 536,755 2,706 2.02 447,297 1,984 1.80
Savings deposits 335,398 26 0.03 331,309 27 0.03 335,083 26 0.03 342,327 27 0.03 331,103 27 0.03
Time deposits 472,621 3,674 3.15 454,083 3,653 3.19 454,625 3,746 3.27 473,589 4,037 3.42 410,749 3,461 3.42
---------- -------------- ---------- -------------- ----------- -------------- ----------- -------------- ----------- --------------
Total Interest-Bearing
Deposits 1,914,287 6,387 1.35 1,910,917 6,547 1.36 1,916,928 6,872 1.42 1,965,483 7,284 1.49 1,762,490 5,996 1.38
Short-term borrowings 74,562 563 3.06 69,326 491 2.81 70,389 513 2.89 44,515 341 3.07 38,721 294 3.08
Long-term borrowings 243,880 2,767 4.60 255,369 2,967 4.61 255,358 2,968 4.61 255,347 2,939 4.62 257,558 2,910 4.58
---------- -------------- ---------- -------------- ----------- -------------- ----------- -------------- ----------- --------------
Total Borrowings 318,442 3,330 4.24 324,695 3,458 4.23 325,747 3,481 4.24 299,862 3,280 4.39 296,279 3,204 4.39
---------- -------------- ---------- -------------- ----------- -------------- ----------- -------------- ----------- --------------
Total Interest-Bearing
Liabilities 2,232,729 9,717 1.77 2,235,612 10,005 1.78 2,242,675 10,353 1.83 2,265,345 10,564 1.87 2,058,769 9,200 1.81
Noninterest-bearing demand
deposits 554,591 592,956 593,800 563,321 512,966
Other liabilities 39,174 40,963 39,397 39,271 36,934
Stockholders' Equity 428,519 415,701 402,343 390,575 360,446
---------- ---------- ----------- ----------- -----------
Total Liabilities and
Stockholders' Equity $3,255,013 $3,285,232 $ 3,278,215 $ 3,258,512 $ 2,969,115
========= -------------- ========= -------------- ========== -------------- ========== -------------- ========== --------------
Taxable Equivalent Net
Interest Income 32,688 33,021 32,298 31,171 27,245
Taxable Equivalent
Adjustment (173) (170) (161) (159) (155)
-------------- -------------- -------------- -------------- --------------
Net Interest Income $ 32,515 $ 32,851 $ 32,137 $ 31,012 $ 27,090
========== ========== ========== ========== ==========
Cost of Funds 1.41% 1.40 % 1.45 % 1.50 % 1.45 % FTE Net Interest Margin 4.46% 4.36 % 4.27 % 4.21 % 4.07 %
_____________________
(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.
Loan and Deposit Detail by Type
Variance
------------------------------------------------------------
March 2026 vs. March 2026 vs.
(Dollars in thousands) March 31, 2026 December 31, 2025 March 31, 2025 December 2025 March 2025
Loans
Commercial real estate $ 1,301,807 $ 1,273,813 $ 1,254,402 $ 27,994 $ 47,405
Residential mortgage 602,305 599,051 591,488 3,254 10,817
Commercial and industrial 204,714 205,452 220,774 (738) (16,060)
Home equity lines of credit 126,473 127,341 119,085 (868) 7,388
Real estate construction 106,128 116,680 127,663 (10,552) (21,535)
Consumer 9,864 10,140 10,526 (276) (662)
-------------------------- -------------------------- -------------------------- ---------------------------- ------------------------------
Gross loans 2,351,291 2,332,477 2,323,938 18,814 27,353
Unearned income (2,046) (1,963) (1,729) (83) (317)
-------------------------- -------------------------- -------------------------- ---------------------------- ------------------------------
Total loans, net of unearned
income $ 2,349,245 $ 2,330,514 $ 2,322,209 $ 18,731 $ 27,036
========================= ========================= ========================= =========================== =============================
Variance
-------------------------------------------------------------
March 2026 vs. March 2026 vs.
(Dollars in thousands) March 31, 2026 December 31, 2025 March 31, 2025 December 2025 March 2025
Deposits
Noninterest-bearing demand
deposits $ 576,056 $ 553,855 $ 562,700 $ 22,201 $ 13,356
Interest-bearing demand
deposits 625,363 623,620 609,187 1,743 16,176
Money market 497,031 485,808 549,704 11,223 (52,673)
Savings 338,763 333,973 341,291 4,790 (2,528)
--------------------------- --------------------------- --------------------------- ---------------------------- -------------------------------
Total demand and savings 2,037,213 1,997,256 2,062,882 39,957 (25,669)
Time 488,559 452,929 477,127 35,630 11,432
--------------------------- --------------------------- --------------------------- ---------------------------- -------------------------------
Total deposits $ 2,525,772 $ 2,450,185 $ 2,540,009 $ 75,587 $ (14,237)
========================== ========================== ========================== =========================== ==============================
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, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025
Tangible book value per
share
-----------------------
Stockholders' equity $ 425,476 $ 419,974 $ 408,642 $ 395,151 $ 386,883
Less: Goodwill and
intangible assets (85,828) (86,884) (88,014) (89,143) (90,284)
--------------------------------- ----------------------- ----------------------- ----------------------- -----------------------
Tangible common
stockholders' equity
(numerator) $ 339,648 $ 333,090 $ 320,628 $ 306,008 $ 296,599
===== ========================== ====================== ====================== ====================== ======================
Shares outstanding,
less unvested
shares, end of
period
(denominator) 10,296,825 10,337,757 10,387,135 10,442,269 10,506,822
--------------------------------- ----------------------- ----------------------- ----------------------- -----------------------
Tangible book value
per share $ 32.99 $ 32.22 $ 30.87 $ 29.30 $ 28.23
===== ========================== ====================== ====================== ====================== ======================
Tangible common equity
to tangible assets
(TCE/TA Ratio)
-----------------------
Tangible common
stockholders' equity
(numerator) $ 339,648 $ 333,090 $ 320,628 $ 306,008 $ 296,599
===== ========================== ====================== ====================== ====================== ======================
Total assets $ 3,269,864 $ 3,228,126 $ 3,250,838 $ 3,259,528 $ 3,270,041
Less: Goodwill and
intangible assets (85,828) (86,884) (88,014) (89,143) (90,284)
--------------------------------- ----------------------- ----------------------- ----------------------- -----------------------
Total tangible assets
(denominator) $ 3,184,036 $ 3,141,242 $ 3,162,824 $ 3,170,385 $ 3,179,757
===== ========================== ====================== ====================== ====================== ======================
Tangible common
equity to tangible
assets 10.67 % 10.60 % 10.14 % 9.65 % 9.33 %
Efficiency Ratio
-----------------------
Noninterest expense $ 23,615 $ 23,453 $ 22,361 $ 25,366 $ 29,335
Less: Intangible
amortization 1,056 1,130 1,129 1,141 857
Less: Merger-related
expense -- 575 169 1,943 8,031
--------------------------------- ----------------------- ----------------------- ----------------------- -----------------------
Noninterest expense
(numerator) $ 22,559 $ 21,748 $ 21,063 $ 22,282 $ 20,447
===== ========================== ====================== ====================== ====================== ======================
Net interest income $ 32,515 $ 32,851 $ 32,137 $ 31,012 $ 27,090
Plus: Total noninterest
income 8,274 4,332 8,411 8,682 7,184
Less: Gain on assets
held for sale 177 -- -- -- --
Less: Gain on life
insurance proceeds 174 -- -- 31 254
Less: Net gains
(losses) on sales or
calls of securities 49 (3,557) -- 22 --
Less: Net (losses)
gains on equity
securities (7) 4 9 3 14
--------------------------------- ----------------------- ----------------------- ----------------------- -----------------------
Total revenue
(denominator) $ 40,396 $ 40,736 $ 40,539 $ 39,638 $ 34,006
===== ========================== ====================== ====================== ====================== ======================
Efficiency ratio 55.84 % 53.39 % 51.96 % 56.21 % 60.13 %
Contact:
Jason H. Weber
EVP/Treasurer & Chief Financial Officer
717.339.5090
jweber@acnb.com
(END) Dow Jones Newswires
April 23, 2026 10:47 ET (14:47 GMT)