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ACNB Corporation Reports 2024 First Quarter Financial Results

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ACNB reported a net income of $6.8 million, or $0.80 per diluted earnings per share, for the first quarter of 2024, compared to $9.0 million, or $1.06 per share, for the same period in 2023. The company's return on average assets was 1.12% and return on average equity was 9.76%. Total loans increased by $37.0 million, or 2.3%, from the previous quarter. Nonperforming loans to total loans decreased to 0.24% in March 2024. Despite challenges in the economic and financial services industry, ACNB remains focused on executing its strategic plan and providing strong returns to shareholders.
ACNB ha riportato un utile netto di 6,8 milioni di dollari, o 0,80 dollari per azione diluita, per il primo trimestre del 2024, rispetto ai 9,0 milioni di dollari, o 1,06 dollari per azione, dello stesso periodo del 2023. Il rendimento medio sugli asset è stato dell'1,12% e il rendimento medio sul patrimonio netto è stato del 9,76%. I prestiti totali sono aumentati di 37,0 milioni di dollari, ovvero del 2,3%, rispetto al trimestre precedente. I prestiti non performanti sul totale dei prestiti sono diminuiti allo 0,24% nel marzo 2024. Nonostante le sfide nel settore economico e dei servizi finanziari, ACNB continua a concentrarsi sull'attuazione del suo piano strategico e sul garantire solidi ritorni agli azionisti.
ACNB reportó un ingreso neto de $6.8 millones, o $0.80 por acción diluida, para el primer trimestre de 2024, en comparación con $9.0 millones, o $1.06 por acción, para el mismo período de 2023. El retorno sobre activos promedio fue del 1.12% y el retorno sobre el patrimonio promedio fue del 9.76%. El total de préstamos aumentó en $37.0 millones, o un 2.3%, desde el trimestre anterior. Los préstamos no productivos sobre el total de préstamos disminuyeron al 0.24% en marzo 2024. A pesar de los desafíos en la industria económica y de servicios financieros, ACNB sigue enfocado en ejecutar su plan estratégico y proporcionar sólidos retornos a los accionistas.
ACNB는 2024년 첫 분기에 순이익 680만 달러, 희석 주당 이익 0.80달러를 보고했습니다. 이는 2023년 같은 기간의 900만 달러, 주당 1.06달러와 비교됩니다. 회사의 평균 자산수익률은 1.12%였으며 평균 자기자본수익률은 9.76%였습니다. 총 대출은 전 분기 대비 3700만 달러, 2.3% 증가했습니다. 부실 대출 비율은 2024년 3월에 0.24%로 감소했습니다. 경제 및 금융 서비스 업계의 도전에도 불구하고 ACNB는 전략 계획을 실행하고 주주들에게 강력한 수익을 제공하는 데 집중하고 있습니다.
ACNB a rapporté un bénéfice net de 6,8 millions de dollars, soit 0,80 dollar par action diluée, pour le premier trimestre 2024, par rapport à 9,0 millions de dollars, soit 1,06 dollar par action, pour la même période en 2023. Le rendement des actifs moyens était de 1,12 % et le rendement des capitaux propres moyens était de 9,76 %. Le total des prêts a augmenté de 37,0 millions de dollars, soit 2,3 %, par rapport au trimestre précédent. Les prêts non performants par rapport au total des prêts ont diminué à 0,24 % en mars 2024. Malgré les défis dans le secteur économique et des services financiers, ACNB reste concentrée sur la mise en œuvre de son plan stratégique et sur la fourniture de solides retours aux actionnaires.
ACNB meldete für das erste Quartal 2024 einen Nettogewinn von 6,8 Millionen Dollar oder 0,80 Dollar pro verwässerter Aktie im Vergleich zu 9,0 Millionen Dollar oder 1,06 Dollar pro Aktie im gleichen Zeitraum 2023. Die Rendite der durchschnittlichen Vermögenswerte betrug 1,12% und die Rendite des durchschnittlichen Eigenkapitals lag bei 9,76%. Die gesamten Kredite stiegen im Vergleich zum Vorquartal um 37,0 Millionen Dollar oder 2,3%. Die Quote der notleidenden Kredite zu den Gesamtkrediten sank im März 2024 auf 0,24%. Trotz Herausforderungen in der Wirtschafts- und Finanzdienstleistungsbranche bleibt ACNB darauf fokussiert, seinen strategischen Plan umzusetzen und starke Erträge für die Aktionäre zu liefern.
Positive
  • Net income decreased from $9.0 million in Q1 2023 to $6.8 million in Q1 2024
  • Return on average assets was 1.12% and return on average equity was 9.76%
  • Total loans increased by $37.0 million, or 2.3%, from the previous quarter
  • Nonperforming loans to total loans decreased to 0.24% in March 2024
  • ACNB provided a 14.2% increase in the cash dividend paid to shareholders in Q2 2024 compared to Q2 2023
  • The company repurchased 4,200 shares of common stock during Q1 2024
Negative
  • Net interest income decreased by 10.8% from Q1 2023 to Q1 2024
  • Noninterest expense increased by 8.5% from Q1 2023 to Q1 2024
  • Deposit decreased by $26.6 million, or 1.4%, since December 31, 2023
  • Total non-interest bearing deposits decreased by $94.8 million, or 15.9%, from March 31, 2023
  • The net unrealized loss on available for sale securities increased to $53.0 million in March 2024

Insights

ACNB Corporation's reported decrease in net income from $9.0 million to $6.8 million year-over-year reveals a contraction in profitability, which is a key indicator for investors assessing company performance. This contraction is partly due to an increase in the cost of deposits and borrowings, pressuring the net interest margin, which declined from 4.22% to 3.77%. It's essential to consider the impact on the company's net interest income, particularly in a fluctuating interest rate environment, as it can affect the corporation's long-term earnings capacity and, by extension, shareholder returns.

The strategic diversification into insurance and wealth management services shows a positive trajectory, with ACNB reporting organic growth and increased commissions and income in these sectors. For investors, this suggests a proactive approach to revenue diversification, potentially mitigating risks associated with a heavy dependence on traditional banking income streams. However, the substantial increases in noninterest expenses, particularly in salaries, benefits and professional services, could raise concerns over operating leverage margins and efficiency ratios, which are significant indicators of a financial institution's cost management.

Despite ACNB's stable asset quality metrics and controlled non-performing loans, the highlighted reduction in deposits and increase in borrowings to fund loan growth could signal liquidity management issues. This might affect investors' confidence, as the ability to manage deposits against loan growth is important for maintaining a healthy balance sheet and avoiding potential liquidity crunches. Additionally, the tangible book value growth and declared dividend increase reflect a strong capital position and could be seen as a positive sign of management's confidence in the corporation's financial health and commitment to returning value to shareholders.

GETTYSBURG, Pa., April 25, 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 $6.8 million, or $0.80 per diluted earnings per share, for the three months ended March 31, 2024 compared to net income of $9.0 million, or $1.06 per diluted earnings per share, for the three months ended March 31, 2023. Compared to the three months ended December 31, 2023, net income and diluted earnings per share for the three months ended March 31, 2024 increased $2.7 million and $0.32, respectively. The financial results for the three month period ended December 31, 2023 were impacted by the repositioning of the investment securities portfolio as announced on Form 8-K on December 15, 2023.

2024 First Quarter Highlights

  • Return on average assets was 1.12% and return on average equity was 9.76% for the three months ended March 31, 2024.
  • Fully taxable equivalent (“FTE”) net interest margin was 3.77% for the three months ended March 31, 2024 compared to 3.93% for the three months ended December 31, 2023 and 4.22% for the three months ended March 31, 2023.
  • Total loans were $1.66 billion at March 31, 2024, an increase of $37.0 million, or 2.3%, from December 31, 2023 and an increase of $133.4 million, or 8.7%, from March 31, 2023.
  • Total nonperforming loans to total loans, net of unearned income, was 0.24% at March 31, 2024 compared to 0.26% at December 31, 2023 and 0.25% at March 31, 2023. Net charge-offs to average loans outstanding (annualized) were 0.00% for the three months ended March 31, 2024 compared to 0.02% for both the three months ended December 31, 2023 and the three months ended March 31, 2023.
  • The loan to deposit ratio was 90.72% at March 31, 2024 and the ratio of uninsured and non-collateralized deposits to total deposits was approximately 17.76% at ACNB Bank at March 31, 2024.
  • Tangible common equity to tangible assets ratio1 of 9.61% at March 31, 2024 compared to 9.48% at December 31, 2023 and 8.56% at March 31, 2023. The net unrealized loss on the available for sale securities portfolio was $53.0 million at March 31, 2024 compared to a net unrealized loss of $50.2 million at December 31, 2023 and a net unrealized loss of $57.6 million at March 31, 2023.
  • ACNB and ACNB Bank capital levels remain well in excess of ACNB’s internal minimums and those required to be categorized as well-capitalized by our bank regulators. ACNB’s overall liquidity position remains strong and stable.

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

“The economic and financial services industry uncertainties have continued to present challenges as we begin 2024. However, ACNB Corporation continues to focus on executing our strategic plan. As a result, we are pleased to share our first quarter operating results. The quarter represents a solid start to the new year and reflects our continued commitment to our shareholders, customers and employees to be the financial service provider of choice in the communities we serve by building relationships and finding solutions,” said James P. Helt, ACNB Corporation President & Chief Executive Officer.

“We experienced strong loan demand during the quarter and continue to experience stellar asset quality due to the hard work and diligence of our entire lending team. Our initiatives to diversify our revenue streams with ACNB Insurance Services and our Wealth Management teams continue to show positive momentum. In addition, our capital position remains very strong and provides the Corporation with a foundation of strength and security.”

“As a result of these ongoing strategic efforts, we were pleased to provide a 14.2% increase in the cash dividend paid to our shareholders in the second quarter of 2024 over the second quarter of 2023. The $0.32 per share second quarter of 2024 quarterly cash dividend also represents a 6.6% increase over the $0.30 per share paid in the first quarter of 2024. This additional return to our shareholders combined with our share repurchase program, reflects our commitment to provide our shareholders with a solid return on their investment in the Corporation.”

Mr. Helt continued, “We remain positive for the remainder of 2024 in spite of continued inflationary pressures and the resulting economic impacts. We are not only focused on the challenges, but also the opportunities that lie ahead and are fully committed to continued growth and profitability for ACNB Corporation.”

Net Interest Income and Margin

Net interest income for the three months ended March 31, 2024 totaled $20.6 million, a decrease of $2.5 million, or 10.8%, compared to the three months ended March 31, 2023. The decrease in net interest income was driven primarily by an increase in the cost of deposits and an increase in borrowings. The FTE net interest margin was 3.77%, a decrease of 45 basis points from 4.22% for the three months ended March 31, 2023. The average rate paid on interest-bearing deposits was 0.65% for the three months ended March 31, 2024, an increase of 53 basis points from the three months ended March 31, 2023. The average rate paid on total borrowings was 4.38% for the three months ended March 31, 2024, an increase of 223 basis points from the three months ended March 31, 2023. The average FTE yield on interest-earning assets increased 37 basis points from 4.37% for the three months ended March 31, 2023 to 4.74% for the three months ended March 31, 2024.

The FTE net interest margin was 3.77%, a decrease of 16 basis points from 3.93% for the three months ended December 31, 2023. The average rate paid on interest-bearing deposits was 0.65% for the three months ended March 31, 2024, an increase of 14 basis points from the three months ended December 31, 2023. The average rate paid on total borrowings was 4.38% for the three months ended March 31, 2024, an increase of 32 basis points from the three months ended December 31, 2023. The average FTE yield on interest-earning assets was 4.74% for the three months ended March 31, 2024, an increase of 12 basis points from the three months ended December 31, 2023.

Noninterest Income

Noninterest income for the three months ended March 31, 2024 was $5.7 million, an increase of $683 thousand, or 13.7%, from the three months ended March 31, 2023. Insurance commissions for the three months ended March 31, 2024 were $2.1 million, an increase of $213 thousand from the three months ended March 31, 2023 driven primarily by organic growth and timing of commissions. Wealth management income for the three months ended March 31, 2024 was $962 thousand, an increase of $122 thousand from the three months ended March 31, 2023 driven primarily by market appreciation and new business generation. For the three months ended March 31, 2024, net gains on sales or calls of investment securities were $69 thousand compared to a loss of $193 thousand for the three months ended March 31, 2023, an increase of $262 thousand.

Compared to the three months ended December 31, 2023, noninterest income for the three months ended March 31, 2024 increased $4.7 million, or 484.2%, driven primarily by the repositioning of the investment securities portfolio which generated a $4.5 million pre-tax loss on the sale of investment securities for the three months ended December 31, 2023.

Noninterest Expense

Noninterest expense for the three months ended March 31, 2024 was $17.7 million, an increase of $1.4 million, or 8.5%, from the three months ended March 31, 2023. The increase was driven primarily by increases in salaries and employee benefits, professional services, other expenses, FDIC and regulatory expenses, and equipment. Salaries and employee benefits expense increased $726 thousand driven primarily by higher health insurance costs and base wages. Professional services increased $234 thousand driven primarily by higher maintenance expenses related to a foreclosed asset held for resale and as a result of recruiting expenses for talent acquisition. Other expenses increased $166 thousand driven primarily by higher directors fees and operating losses. The $126 thousand increase in FDIC and regulatory was the result of a higher FDIC assessment due to changes in the composition of ACNB’s balance sheet. Equipment expense increased $122 thousand driven primarily by purchases of office equipment.

Noninterest expense for the three months ended March 31, 2024 increased $489 thousand, or 2.8%, from the three months ended December 31, 2023. The increase was driven primarily by increases in salaries and employee benefits and net occupancy partially offset by decreases in professional services and other expenses. Salaries and employee benefits increased $572 thousand driven primarily by increases to stock-based compensation and health insurance costs. Net occupancy increased $203 thousand driven primarily by higher snow removal costs, building maintenance and utilities. Professional services decreased $104 thousand as the prior quarter had higher loan review and consulting expenses. Other expenses decreased $99 thousand driven primarily by a lower mark-to-market loss on an SBIC fund compared to the prior quarter and timing of FDIC assessment expense.

Loans and Asset Quality

Total loans outstanding were $1.66 billion at March 31, 2024, an increase of $37.0 million, or 2.3%, from December 31, 2023 and an increase of $133.4 million, or 8.7%, from March 31, 2023. The increase in both periods was driven primarily by growth in the commercial loan portfolio in our core markets.

Asset quality metrics continue to be stable. The provision for credit losses was $223 thousand and the provision for unfunded commitments was a reversal of $151 thousand for the three months ended March 31, 2024 compared to a provision for credit losses of $786 thousand and the provision for unfunded commitments was a reversal of $242 thousand for three months ended December 31, 2023 and a provision for credit losses of $97 thousand and a $276 thousand provision for unfunded commitments for the three months ended March 31, 2023. Non-performing loans were $3.9 million, or 0.24%, of total loans at March 31, 2024 compared to $4.2 million, or 0.26%, of total loans at December 31, 2023 and $3.8 million, or 0.25%, of total loans at March 31, 2023. The decrease in the provision for credit losses for the three months ended March 31, 2024 compared to the prior quarter was due to a specific reserve on one commercial and industrial relationship which was recorded during the three months ended December 31, 2023. The decrease in non-performing loans at March 31, 2024 compared to the prior quarter was the result of several payoffs. Annualized net charge-offs for the three months ended March 31, 2024 were 0.00% of total average loans compared to 0.02% for both the three months ended December 31, 2023 and March 31, 2023.

Deposits and Borrowings

Deposits totaled $1.84 billion at March 31, 2024, decreasing $26.6 million, or 1.4%, since December 31, 2023 and $220.6 million, or 10.7%, from March 31, 2023. The decrease of $26.6 million compared to December 31, 2023 was driven primarily by an outflow of municipal deposits. Included in total deposits were $1.34 billion interest-bearing deposits which decreased by $25.8 million, or 1.9%, from December 31, 2023 and by $125.8 million, or 8.6%, from March 31, 2023. Total non-interest bearing deposits were $499.6 million at March 31, 2024. Noninterest bearing deposits decreased by $749 thousand, or 0.1%, from December 31, 2023 and decreased by $94.8 million, or 15.9% from March 31, 2023.

Total borrowings were $272.6 million at March 31, 2024, an increase of $20.4 million, or 8.1%, compared to December 31, 2023. The increase in borrowings was driven primarily by the outflow of municipal deposits and to fund loan growth. The average rate on total borrowings was 4.38% for the three months ended March 31, 2024 compared to 4.06% for the three months ended December 31, 2023 and 2.15% for the three months ended March 31, 2023.

Stockholders’ Equity, Dividends and Share Repurchases

Total stockholders’ equity was $279.9 million at March 31, 2024 compared to $277.5 million at December 31, 2023 and $255.8 million at March 31, 2023. Tangible book value2 per share was $26.70, $26.44 and $23.66 at March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

As announced on Form 8-K on April 24, 2024, the Board of Directors approved and declared a regular quarterly cash dividend of $0.32 per share of ACNB Corporation common stock payable on June 14, 2024, to shareholders of record as of May 31, 2024. This per share amount reflects a $0.04, or 14.2%, increase over the same quarter of 2023.

ACNB repurchased 4,200 shares of ACNB common stock during the three months ended March 31, 2024 at a cost of $147 thousand.

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

About ACNB Corporation

ACNB Corporation, headquartered in Gettysburg, PA, is the $2.41 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 26 community banking offices and three loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 46 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, MD, and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.

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

ACNB #2024-10
April 25, 2024 

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


ACNB Corporation Financial Highlights
Selected Financial Data by Respective Quarter End
(Unaudited)
(Dollars in thousands, except per share data)March 31,
2024
 December 31,
2023
 September 30,
2023
 June 30,
2023
 March 31,
2023
BALANCE SHEET DATA         
Assets$2,414,288  $2,418,847  $2,388,522  $2,378,151  $2,410,933 
Securities 490,626   517,221   501,063   518,093   568,232 
Total loans, net of unearned income 1,664,980   1,627,988   1,615,966   1,573,817   1,531,626 
Allowance for credit losses (20,172)  (19,969)  (19,264)  (19,148)  (19,485)
Deposits 1,835,224   1,861,813   1,951,359   1,963,754   2,055,822 
Allowance for unfunded commitments 1,569   1,719   1,962   2,132   2,011 
Borrowings 272,605   252,174   153,388   132,703   76,294 
Stockholders’ equity 279,920   277,461   255,638   257,069   255,841 
INCOME STATEMENT DATA         
Interest and dividend income$25,974  $25,284  $24,234  $23,213  $23,909 
Interest expense 5,381   3,791   2,489   1,223   817 
Net interest income 20,593   21,493   21,745   21,990   23,092 
Provision for (reversal of) credit losses 223   786   250   (273)  97 
(Reversal of) provision for unfunded commitments (151)  (242)  (171)  121   276 
Net interest income after provisions for credit losses and unfunded commitments 20,521   20,949   21,666   22,142   22,719 
Noninterest income 5,667   970   6,297   6,194   4,984 
Noninterest expenses 17,662   17,173   16,336   16,281   16,282 
Income before income taxes 8,526   4,746   11,627   12,055   11,421 
Provision for income taxes 1,758   649   2,583   2,531   2,398 
Net income$6,768  $4,097  $9,044  $9,524  $9,023 
PROFITABILITY RATIOS         
Total loans, net of unearned income to deposits 90.72%  87.44%  82.81%  80.14%  74.50%
Return on average assets (annualized) 1.12   0.68   1.52   1.62   1.50 
Return on average equity (annualized) 9.76   6.09   13.84   14.74   14.58 
Efficiency ratio3 66.18   62.48   56.97   55.52   56.36 
FTE Net interest margin 3.77   3.93   4.01   4.11   4.22 
Yield on average earning assets 4.74   4.62   4.46   4.33   4.37 
Yield on investment securities 2.70   2.36   2.24   2.24   2.46 
Yield on total loans 5.37   5.29   5.16   5.05   5.12 
Cost of funds 1.02   0.71   0.47   0.23   0.15 
PER SHARE DATA         
Diluted earnings per share$0.80  $0.48  $1.06  $1.12  $1.06 
Cash dividends paid per share 0.30   0.30   0.28   0.28   0.28 
Tangible book value per share3 26.70   26.44   23.80   23.83   23.66 
Tangible book value per share3 (excluding AOCI)4 32.21   31.74   31.43   30.64   29.76 
CAPITAL RATIOS5         
Tier 1 leverage ratio 11.91%  11.57%  11.97%  11.79%  11.09%
Common equity tier 1 ratio 15.40   15.16   15.30   15.38   15.21 
Tier 1 risk based capital ratio 15.69   15.45   15.59   15.72   15.56 
Total risk based capital ratio 17.68   17.41   17.49   17.67   17.56 
CREDIT QUALITY         
Net charge-offs to average loans outstanding (annualized) 0.00%  0.02%  0.03%  0.02%  0.02%
Total non-performing loans to total loans, net of unearned income 6 0.24   0.26   0.22   0.23   0.25 
Total non-performing assets to total assets7 0.18   0.19   0.17   0.17   0.18 
Allowance for credit losses to total loans, net of unearned income 1.21   1.23   1.19   1.22   1.27 
 

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 Income (Loss).
5 Regulatory capital ratios as of March 31, 2024 are preliminary.
6 Non-performing Loans consists of loans on nonaccrual status and loans greater than ninety days past due and still accruing interest.
7 Non-performing Assets consists of Non-performing Loans and Foreclosed assets held for resale.


Consolidated Balance Sheet
(Unaudited)
(Dollars in thousands, except per share data) March 31,
2024
 December 31,
2023
 September 30,
2023
ASSETS      
Cash and due from banks $17,395  $21,442  $22,786 
Interest-bearing deposits with banks  35,740   44,516   41,255 
Total Cash and Cash Equivalents  53,135   65,958   64,041 
Equity securities with readily determinable fair values  918   928   888 
Investment securities available for sale, at estimated fair value  425,114   451,693   435,559 
Investment securities held to maturity, at amortized cost (fair value $58,084, $59,057, and $53,843)  64,594   64,600   64,616 
Loans held for sale  88   280    
Total loans, net of unearned income  1,664,980   1,627,988   1,615,966 
Less: Allowance for credit losses  (20,172)  (19,969)  (19,264)
Loans, net  1,644,808   1,608,019   1,596,702 
Premises and equipment, net  25,916   26,283   25,740 
Right of use asset  2,447   2,615   2,784 
Restricted investment in bank stocks  10,877   9,677   5,477 
Investment in bank-owned life insurance  80,348   79,871   79,391 
Investments in low-income housing partnerships  971   1,003   1,034 
Goodwill  44,185   44,185   44,185 
Intangible assets, net  8,761   9,082   9,434 
Foreclosed assets held for resale  467   467   467 
Other assets  51,659   54,186   58,204 
Total Assets $2,414,288  $2,418,847  $2,388,522 
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Deposits:      
Noninterest-bearing $499,583  $500,332  $565,530 
Interest-bearing  1,335,641   1,361,481   1,385,829 
Total Deposits  1,835,224   1,861,813   1,951,359 
Short-term borrowings  17,303   56,882   33,106 
Long-term borrowings  255,302   195,292   120,282 
Lease liability  2,447   2,615   2,784 
Allowance for unfunded commitments  1,569   1,719   1,962 
Other liabilities  22,523   23,065   23,391 
Total Liabilities  2,134,368   2,141,386   2,132,884 
       
Stockholders’ Equity:      
Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding at March 31, 2024, December 31, 2023 and September 30, 2023, respectively         
Common stock, $2.50 par value; 20,000,000 shares authorized; 8,928,441, 8,896,119, and 8,892,374 shares issued; 8,539,575, 8,511,453, and 8,521,546 shares outstanding at March 31, 2024, December 31, 2023 and September 30, 2023, respectively  22,315   22,231   22,224 
Treasury stock, at cost; 388,866, 384,666, and 370,828 shares at March 31, 2024, December 31, 2023 and September 30, 2023, respectively  (11,101)  (10,954)  (10,502)
Additional paid-in capital  97,818   97,602   96,744 
Retained earnings  217,712   213,491   211,939 
Accumulated other comprehensive loss  (46,824)  (44,909)  (64,767)
Total Stockholders’ Equity  279,920   277,461   255,638 
Total Liabilities and Stockholders’ Equity $2,414,288  $2,418,847  $2,388,522 


Consolidated Income Statements
(Unaudited)
 Three Months Ended
March 31,
(Dollars in thousands, except per share data) 2024   2023 
INTEREST AND DIVIDEND INCOME   
Loans, including fees   
Taxable$21,470  $18,898 
Tax-exempt 319   356 
Securities:   
Taxable 2,911   3,286 
Tax-exempt 284   314 
Dividends 240   41 
Other 750   1,014 
Total Interest and Dividend Income 25,974   23,909 
INTEREST EXPENSE   
Deposits 2,160   473 
Short-term borrowings 339   17 
Long-term borrowings 2,882   327 
Total Interest Expense 5,381   817 
Net Interest Income 20,593   23,092 
Provision for credit losses 223   97 
(Reversal of) provision for unfunded commitments (151)  276 
Net Interest Income after Provisions for Credit Losses and Unfunded Commitments 20,521   22,719 
NONINTEREST INCOME   
Insurance commissions 2,115   1,902 
Service charges on deposits 991   962 
Wealth management 962   840 
ATM debit card charges 819   823 
Earnings on investment in bank-owned life insurance 477   442 
Gain from mortgage loans held for sale 48   17 
Net gains (losses) on sales or calls of investment securities 69   (193)
Net (losses) gains on equity securities (10)  20 
Other 196   171 
Total Noninterest Income 5,667   4,984 
NONINTEREST EXPENSES   
Salaries and employee benefits 11,168   10,442 
Equipment 1,729   1,607 
Net occupancy 1,130   1,037 
Professional services 616   382 
FDIC and regulatory 375   249 
Other tax 370   337 
Intangible assets amortization 321   360 
Supplies and postage 191   206 
Marketing and corporate relations 88   154 
Other 1,674   1,508 
Total Noninterest Expenses 17,662   16,282 
Income Before Income Taxes 8,526   11,421 
Provision for income taxes 1,758   2,398 
Net Income$6,768  $9,023 
PER SHARE DATA   
Basic and diluted earnings$0.80  $1.06 


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, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 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 $1,573,109  $21,470  5.49% $1,559,411  $21,303  5.42% $1,520,134  $20,285  5.29% $1,463,967  $18,946  5.19%  1,454,934   18,898  5.27%
Tax-exempt  65,825   404  2.47%  69,058   425  2.44%  73,995   457  2.45%  75,670   446  2.36%  77,341   451  2.36%
Total Loans9  1,638,934   21,874  5.37%  1,628,469   21,728  5.29%  1,594,129   20,742  5.16%  1,539,637   19,392  5.05%  1,532,275   19,349  5.12%
Investment Securities:                              
Taxable  467,466   3,151  2.71%  453,713   2,669  2.33%  466,402   2,581  2.20%  498,401   2,739  2.20%  557,377   3,327  2.42%
Tax-exempt  54,740   359  2.64%  54,835   361  2.61%  55,027   359  2.59%  55,588   361  2.60%  55,589   397  2.90%
Total Investments10  522,206   3,510  2.70%  508,548   3,030  2.36%  521,429   2,940  2.24%  553,989   3,100  2.24%  612,966   3,724  2.46%
Interest-bearing deposits with banks  54,156   750  5.57%  50,225   691  5.46%  53,324   723  5.38%  71,040   890  5.03%  90,987   1,014  4.52%
Total Earning Assets  2,215,296   26,134  4.74%  2,187,242   25,449  4.62%  2,168,882   24,405  4.46%  2,164,666   23,382  4.33%  2,236,228   24,087  4.37%
Cash and due from banks  20,540       21,578       23,783       22,215       21,151     
Premises and equipment  26,102       25,983       25,980       26,420       26,885     
Other assets  187,075       191,329       165,821       163,783       172,804     
Allowance for credit losses  (19,963)      (19,232)      (19,101)      (19,458)      (17,849)    
Total Assets $2,429,050      $2,406,900      $2,365,365      $2,357,626      $2,439,219     
LIABILITIES                              
Interest-bearing demand deposits $512,701  $264  0.21% $560,510  $275  0.19% $571,314  $185  0.13% $577,480  $150  0.10% $591,972  $146  0.10%
Money markets  248,297   536  0.87%  274,226   707  1.02%  245,899   312  0.50%  261,560   100  0.15%  298,584   73  0.10%
Savings deposits  335,215   29  0.03%  348,244   28  0.03%  366,398   30  0.03%  387,847   31  0.03%  403,419   33  0.03%
Time deposits  244,481   1,331  2.19%  221,778   798  1.43%  212,159   401  0.75%  224,608   205  0.37%  268,708   221  0.33%
Total Interest-Bearing Deposits  1,340,694   2,160  0.65%  1,404,758   1,808  0.51%  1,395,770   928  0.26%  1,451,495   486  0.13%  1,562,683   473  0.12%
Short-term borrowings  47,084   339  2.90%  56,872   334  2.33%  66,942   439  2.60%  34,080   108  1.27%  35,596   17  0.19%
Long-term borrowings  248,701   2,882  4.66%  137,026   1,649  4.77%  94,554   1,122  4.71%  59,901   629  4.21%  29,211   327  4.54%
Total Borrowings  295,785   3,221  4.38%  193,898   1,983  4.06%  161,496   1,561  3.83%  93,981   737  3.15%  64,807   344  2.15%
Total Interest-Bearing Liabilities $1,636,479  $5,381  1.32% $1,598,656  $3,791  0.94% $1,557,266  $2,489  0.63% $1,545,476  $1,223  0.32% $1,627,490  $817  0.20%
Noninterest-bearing demand deposits  486,648       519,797       541,995       550,581       557,546     
Other liabilities  26,904       21,648       6,820       2,330       3,129     
Stockholders’ Equity  279,019        266,799       259,284       259,239       251,054     
Total Liabilities and Stockholders’ Equity $2,429,050      $2,406,900      $2,365,365      $2,357,626      $2,439,219     
Taxable Equivalent Net Interest Income    20,753       21,658       21,916       22,159       23,270   
Taxable Equivalent Adjustment    (160)      (165)      (171)      (169)      (178)  
Net Interest Income   $20,593      $21,493      $21,745      $21,990      $23,092   
Cost of Funds     1.02%     0.71%     0.47%     0.23%     0.15%
FTE Net Interest Margin     3.77%     3.93%     4.01%     4.11%     4.22%
 

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


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,
2024

 December 31,
2023

 September 30,
2023

 June 30,
2023
 
 March 31,
2023
 
Tangible book value per share               
Stockholders’ equity $279,920  $277,461  $255,638  $257,069  $255,841 
Less: Goodwill and intangible assets (52,946) (53,267) (53,619) (53,797) (54,157)
Tangible common stockholders’ equity (numerator) $226,974  $224,194  $202,019  $203,272  $201,684 
Shares outstanding, less unvested shares, end of period (denominator) 8,501,137  8,478,460  8,488,446  8,528,782  8,523,406 
Tangible book value per share $26.70  $26.44  $23.80  $23.83  $23.66 
Tangible book value per share (excluding AOCI)               
Tangible common stockholders’ equity $226,974  $224,194  $202,019  $ 203,272  $201,684 
Less: AOCI (46,824)  (44,909)  (64,767)  (58,052)  (51,960)
Tangible equity (excluding AOCI) $273,798  $269,103  $ 266,786  $261,324  $253,644 
Tangible book value per share (excluding AOCI) $32.21  $31.74  $31.43  $30.64  $29.76 
Tangible common equity to tangible assets (TCE/TA Ratio)               
Tangible common stockholders’ equity (numerator) $226,974  $224,194  $202,019  $203,272  $201,684 
Total assets $2,414,288  $2,418,847  $2,388,522  $2,378,151  $2,410,933 
Less: Goodwill and intangible assets (52,946)  (53,267)  (53,619)  (53,797)  (54,157)
Total tangible assets (denominator) $2,361,342  $2,365,580  $2,334,903  $ 2,324,354  $2,356,776 
Tangible common equity to tangible assets  9.61%  9.48% 8.65% 8.75% 8.56%
Efficiency Ratio               
Noninterest expense $17,662  $17,173  $16,336  $16,281  $16,282 
Less: Intangible amortization 321  352  352  360  360 
Less: Loss on MD Title Investment —       142   
Numerator $17,341  $16,821  $15,984  $15,779  $15,922 
Net interest income $20,593  $21,493  $21,745  $21,990  $23,092 
Plus: Total noninterest income 5,667  970  6,297  6,194  4,984 
Less: Net gains (losses) on sales or calls of securities 69  (4,501)    (546)  (193)
Less: Net (losses) gains on equity securities (10)  40  (27)  (15)  20 
Less: Gain on assets held for sale     14  323   
Denominator $26,201   $26,924  $28,055  $28,422  $28,249 
Efficiency ratio 66.18%  62.48%  56.97%  55.52%  56.36% 
      


FAQ

What was ACNB 's net income for the first quarter of 2024?

ACNB reported a net income of $6.8 million for the first quarter of 2024.

How did ACNB 's return on average assets and return on average equity compare in the first quarter of 2024?

ACNB 's return on average assets was 1.12% and return on average equity was 9.76% in the first quarter of 2024.

How much did total loans increase by in the first quarter of 2024?

Total loans increased by $37.0 million, or 2.3%, in the first quarter of 2024.

What was the percentage of nonperforming loans to total loans in March 2024?

Nonperforming loans to total loans decreased to 0.24% in March 2024.

What increase did ACNB provide in the cash dividend paid to shareholders in the second quarter of 2024 compared to the second quarter of 2023?

ACNB provided a 14.2% increase in the cash dividend paid to shareholders in the second quarter of 2024 compared to the second quarter of 2023.

How many shares of common stock did ACNB repurchase during the first quarter of 2024?

ACNB repurchased 4,200 shares of common stock during the first quarter of 2024.

ACNB Corp

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