ACNB Corporation Reports 2025 Second Quarter Financial Results

Rhea-AI Summary

ACNB Corporation (NASDAQ: ACNB) reported strong Q2 2025 financial results, with net income of $11.6 million, or $1.11 diluted earnings per share, compared to $11.3 million in Q2 2024. The quarter marked the first full period of combined operations following the Traditions Bancorp acquisition.

Key highlights include a fully taxable equivalent net interest margin of 4.21%, total loans of $2.34 billion (up 0.8% from Q1), and a tangible common equity ratio of 9.65%. The Board approved a quarterly dividend increase of 6.3% to $0.34 per share and authorized a new share repurchase program for up to 314,000 shares.

The bank demonstrated solid performance with return on average assets of 1.43% and return on average equity of 11.96%. Asset quality remained stable with non-performing loans at 0.43% of total loans.

Positive

• Net income increased to $11.6 million in Q2 2025 from $11.3 million in Q2 2024
• Net interest margin improved to 4.21% from 3.82% year-over-year
• Quarterly dividend increased by 6.3% to $0.34 per share
• Total loans grew by $662.2 million year-over-year
• Strong asset quality with low 0.01% annualized net charge-offs

Negative

• Q1 2025 showed a net loss of $272,000 due to acquisition-related expenses
• Net unrealized loss of $36.2 million on available for sale securities portfolio
• Non-performing loans increased to 0.43% from 0.19% year-over-year
• Total deposits decreased by $15.5 million from Q1 2025

GETTYSBURG, Pa., July 24, 2025 (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 $11.6 million, or $1.11 diluted earnings per share, for the three months ended June 30, 2025 compared to net income of $11.3 million, or $1.32 diluted earnings per share, for the three months ended June 30, 2024 and compared to net loss of $272 thousand, or $0.03 diluted loss per share, for the three months ended March 31, 2025. 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”) (“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.

2025 Second Quarter Highlights

• Fully taxable equivalent (“FTE”) net interest margin was 4.21% for the three months ended June 30, 2025 compared to 4.07% for the three months ended March 31, 2025 and 3.82% for the three months ended June 30, 2024.
  
  
• Return on average assets was 1.43% and return on average equity was 11.96% for the three months ended June 30, 2025.
  
  
• Total loans were $2.34 billion at June 30, 2025, an increase of $19.6 million, or 0.8%, from March 31, 2025, or 3.4% on an annualized basis.
  
  
• Tangible common equity to tangible assets ratio¹ of 9.65% at June 30, 2025 compared to 9.33% at March 31, 2025 and 9.84% at June 30, 2024. The net unrealized loss on the available for sale securities portfolio was $36.2 million at June 30, 2025 compared to a net unrealized loss of $39.7 million at March 31, 2025 and a net unrealized loss of $52.7 million at June 30, 2024.
  
  
• As announced on Form 8-K on July 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 period of 2024.
  
  
• ACNB repurchased 71,592 shares of ACNB common stock in open market transactions during the three months ended June 30, 2025. On June 18, 2025, the Corporation announced that the Board of Directors approved a plan to repurchase, in open market transactions at prevailing market prices, up to 314,000 shares or approximately 3.0%, of the outstanding shares of ACNB’s common stock.

“We are pleased to share strong results for the second quarter of 2025 which reflect our first full quarter of combined operations including Traditions Bank, a division of ACNB Bank. After completing the acquisition in early February of this year, we are excited to share that we have successfully completed our system conversion enabling all ACNB Bank customers to bank at any convenient location,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

“Our financial results reflect our continued commitment to our community banking business model and to generating long term shareholder value. The quarter was represented by strong profitability, an increase in quarter over quarter net loan growth, stable asset quality and an active capital management strategy supported by a $0.34 second quarter dividend payment and continued open market share repurchases.”

Mr. Helt continued, “As we look to the remainder of the year, we are focused on managing through the uncertain national economic challenges by continuing to diversify our revenue streams with ACNB Insurance Services, our Wealth Management teams and Traditions Mortgage. We are optimistic that our strong capital position, ample liquidity, superior asset quality metrics and our focus on profitability will enable us to deliver on our commitment to our many different stakeholders.”

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 June 30, 2025 may not be directly comparable to prior reported periods.

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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.

Net Interest Income and Margin

Net interest income for the three months ended June 30, 2025 totaled $31.0 million, an increase of $10.0 million from the three months ended June 30, 2024 and an increase of $3.9 million from the three months ended March 31, 2025. The increases were driven primarily by the Acquisition. The FTE net interest margin for the three months ended June 30, 2025 was 4.21%, a 39 basis points increase from the three months ended June 30, 2024 and a 14 basis points increase from the three months ended March 31, 2025. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $2.2 million and $1.5 million for the three months ended June 30, 2025 and the three months ended March 31, 2025, respectively. The following discussion of increases in average balances and yields compared to the previous periods were driven primarily by the Acquisition. For the three months ended June 30, 2025, total average loans increased $678.7 million and $217.1 million compared to the three months ended June 30, 2024 and the three months ended March 31, 2025, respectively. The yield on total loans was 6.29% for the three months ended June 30, 2025, an increase of 76 basis points compared to the three months ended June 30, 2024 and an increase of 21 basis points from the three months ended March 31, 2025. For the three months ended June 30, 2025, total average interest- bearing deposits increased $613.8 million from the three months ended June 30, 2024 and increased $203.0 million from the three months ended March 31, 2025. The average rate paid on interest-bearing deposits was 1.49% for the three months ended June 30, 2025, an increase of 70 basis points from the three months ended June 30, 2024 and an increase of 11 basis points from the three months ended March 31, 2025. For the three months ended June 30, 2025, total average noninterest-bearing demand deposits increased $78.0 million from the three months ended June 30, 2024 and increased $50.4 million from the three months ended March 31, 2025.

Noninterest Income

Noninterest income for the three months ended June 30, 2025 was $8.7 million, an increase of $2.3 million from the three months ended June 30, 2024 and an increase of $1.5 million from the three months ended March 31, 2025. Gain from mortgage loans held for sale for the three months ended June 30, 2025 was $1.6 million, an increase of $1.5 million from the three months ended June 30, 2024 and an increase of $720 thousand from the three months ended March 31, 2025. Insurance commissions for the three months ended June 30, 2025 were $2.9 million, an increase of $161 thousand from the three months ended June 30, 2024 driven primarily by timing of policy renewals and new business and an increase of $761 thousand from the three months ended March 31, 2025 driven primarily by seasonally stronger policy renewals and an increase in contingent commission income during the three months ended June 30, 2025 for contingent commissions earned in 2024. Service charges on deposits were $1.2 million, an increase of $158 thousand from the three months ended June 30, 2024 and an increase of $85 thousand from the three months ended March 31, 2025 driven primarily by the Acquisition.

Noninterest Expense

Noninterest expense for the three months ended June 30, 2025 increased $9.0 million from the three months ended June 30, 2024 and decreased $4.0 million from the three months ended March 31, 2025. Merger-related expenses totaled $1.9 million for the three months ended June 30, 2025 compared to $23 thousand for the three months ended June 30, 2024 and $8.0 million for the three months ended March 31, 2025. Salaries and employee benefits expense increased $3.3 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and increased $832 thousand compared to three months ended March 31, 2025 driven primarily by an increased number of employees attributable to the Acquisition, merit increases and higher mortgage commissions. Net occupancy increased $286 thousand for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 driven primarily by the Acquisition and decreased $165 thousand compared to the three months ended March 31, 2025 driven primarily by lower snow removal costs. Equipment expense increased $969 thousand for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and increased $259 thousand compared to the three months ended March 31, 2025 driven primarily by the Acquisition and the implementation of new additional products into our core processing system. Other tax decreased $136 thousand for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and decreased $307 thousand compared to the three months ended March 31, 2025 driven primarily by earned income tax credits recognized in the period. Intangible assets amortization increased $826 thousand during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and increased $284 thousand compared to the three months ended March 31, 2025 driven by the Acquisition. Other increased $1.5 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 and increased $1.0 million compared to the three months ended March 31, 2025 driven primarily by the Acquisition, earned income tax related donations, and higher internet banking services.

Loans and Asset Quality

Total loans outstanding were $2.34 billion at June 30, 2025, an increase of $19.6 million from March 31, 2025 and an increase of $662.2 million from June 30, 2024. The growth from March 31, 2025 was spread across real estate construction, commercial and industrial, home equity lines of credit and residential mortgage. The increase compared to June 30, 2024 was spread across all loan categories and was driven primarily by the Acquisition. The allowance for credit losses was $24.4 million at June 30, 2025, a decrease of $293 thousand compared to March 31, 2025 and an increase of $7.2 million compared to June 30, 2024. 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. The increase compared to June 30, 2024 was driven primarily by the Acquisition. The allowance for unfunded commitments was $1.5 million at June 30, 2025, a decrease of $354 thousand compared to March 31, 2025 and an increase of $219 thousand compared to June 30, 2024. 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 unfunded commitments model and lower commitments. The increase compared to June 30, 2024 was driven primarily by the Acquisition.

Non-performing loans were $10.1 million, or 0.43%, of total loans, net of unearned income, at June 30, 2025 compared to $10.0 million, or 0.43%, of total loans at March 31, 2025 and $3.1 million, or 0.19%, of total loans at June 30, 2024. The increase in non-performing loans at June 30, 2025 compared to June 30, 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. Annualized net charge-offs for the three months ended June 30, 2025 were 0.01% of total average loans compared to 0.01% for the three months ended March 31, 2025 and 0.00% for the three months ended June 30, 2024.

Deposits and Borrowings

Deposits totaled $2.52 billion at June 30, 2025, a decrease of $15.5 million from March 31, 2025 and an increase of $686.0 million from June 30, 2024. Included in total deposits at June 30, 2025 were $568.3 million of noninterest-bearing deposits, which increased $5.6 million and $88.6 million from March 31, 2025 and June 30, 2024, respectively. Total interest-bearing deposits were $1.96 billion at June 30, 2025 a decrease of $21.1 million from March 31, 2025 and an increase of $597.4 million from June 30, 2024. The decrease from March 31, 2025 was driven primarily by the withdrawal of a significant 1031 Exchange deposit held on behalf of a commercial customer. Time deposits, included in interest-bearing deposits, increased $3.3 million and $225.0 million since March 31, 2025 and June 30, 2024, respectively. In June 2025, ACNB Bank issued $20.0 million in brokered time deposits to partially offset the 1031 Exchange deposit withdrawal and the maturity of a $5.0 million brokered deposit during the quarter. The overall increase in total deposits compared to June 30, 2024 was driven primarily by the Acquisition.

Total borrowings were $298.4 million at June 30, 2025, a decrease of $1.1 million and $5.9 million compared to March 31, 2025 and June 30, 2024, respectively.

Stockholders’ Equity

Total stockholders’ equity was $395.2 million at June 30, 2025 compared to $386.9 million at March 31, 2025 and $289.3 million at June 30, 2024. The increase at June 30, 2025 compared to March 31, 2025 was driven primarily by net income of $11.6 million slightly offset by dividends paid of $3.5 million and common stock repurchased of $3.1 million for the three months ended June 30, 2025. The increase at June 30, 2025 compared to June 30, 2024 was driven primarily by the common stock equity issued in the Acquisition.

Tangible book value¹ per share was $29.30, $28.23 and $27.82 at June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

ACNB repurchased 71,592 shares of ACNB common stock in open market transactions during the three months ended June 30, 2025. On June 18, 2025, the Corporation announced that the Board of Directors approved a plan to repurchase, in open market transactions at prevailing market prices, up to 314,000 shares or approximately 3.0%, of the outstanding shares of ACNB’s common stock. This new common stock open market repurchase plan replaces and supersedes any and all earlier announced repurchase plans. There were no shares repurchased under this plan during the three months ended June 30, 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.

About ACNB Corporation

ACNB Corporation, headquartered in Gettysburg, PA, is the independent $3.26 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 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
July 24, 2025

ACNB Corporation Financial Highlights Selected Financial Data by Respective Quarter End (Unaudited)
(Dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
BALANCE SHEET DATA
Total Assets	$	3,259,528		$	3,270,041		$	2,394,830		$	2,420,914		$	2,457,753
Investment securities		520,758			521,306			459,472			483,604			483,868
Total loans, net of unearned income		2,341,816			2,322,209			1,682,910			1,677,112			1,679,600
Allowance for credit losses		(24,353	)		(24,646	)		(17,280	)		(17,214	)		(17,162	)
Deposits		2,524,541			2,540,009			1,792,501			1,791,317			1,838,588
Allowance for unfunded commitments		1,529			1,883			1,394			1,349			1,310
Borrowings		298,395			299,531			271,159			293,091			304,286
Stockholders’ equity		395,151			386,883			303,273			306,755			289,331
INCOME STATEMENT DATA
Interest and dividend income	$	41,576		$	36,290		$	27,381		$	27,241		$	26,869
Interest expense		10,564			9,200			6,269			6,299			5,905
Net interest income		31,012			27,090			21,112			20,942			20,964
(Reversal of) provision for credit losses		(228	)		5,968			249			81			(2,990	)
(Reversal of) provision for unfunded commitments		(354	)		(480	)		44			40			(259	)
Net interest income after (reversal of) provisions for credit losses and unfunded commitments		31,594			21,602			20,819			20,821			24,213
Noninterest income		8,682			7,184			5,803			6,833			6,427
Noninterest expenses		25,366			29,335			18,388			18,244			16,391
Income (loss) before income taxes		14,910			(549	)		8,234			9,410			14,249
Income tax expense (benefit)		3,262			(277	)		1,639			2,206			2,970
Net income (loss)	$	11,648		$	(272	)	$	6,595		$	7,204		$	11,279
PROFITABILITY RATIOS
Total loans, net of unearned income to deposits		92.76	%		91.43	%		93.89	%		93.62	%		91.35	%
Return on average assets (annualized)		1.43			(0.04	)		1.08			1.17			1.86
Return on average equity (annualized)		11.96			(0.31	)		8.57			9.63			16.12
Efficiency ratio1		56.21			60.13			63.83			60.56			58.61
FTE Net interest margin		4.21			4.07			3.81			3.77			3.82
Yield on average earning assets		5.64			5.45			4.93			4.90			4.89
Yield on investment securities		2.95			2.91			2.58			2.59			2.65
Yield on total loans		6.29			6.08			5.61			5.56			5.53
Cost of funds		1.50			1.45			1.19			1.19			1.12
PER SHARE DATA
Diluted earnings (loss) per share	$	1.11		$	(0.03	)	$	0.77		$	0.84		$	1.32
Cash dividends paid per share		0.34			0.32			0.32			0.32			0.32
Tangible book value per share1		29.30			28.23			29.51			29.90			27.82
CAPITAL RATIOS2
Tier 1 leverage ratio		10.97	%		11.81	%		12.52	%		12.46	%		12.25	%
Common equity tier 1 ratio		13.96			13.65			16.27			16.07			15.78
Tier 1 risk based capital ratio		14.17			13.86			16.56			16.36			16.07
Total risk based capital ratio		15.75			15.45			18.36			18.15			17.86
CREDIT QUALITY
Net charge-offs to average loans outstanding (annualized)		0.01	%		0.01	%		0.04	%		0.01	%		0.00	%
Total non-performing loans to total loans, net of unearned income3		0.43			0.43			0.40			0.39			0.19
Total non-performing assets to total assets4		0.31			0.32			0.30			0.29			0.14
Allowance for credit losses to total loans, net of unearned income		1.04			1.06			1.03			1.03			1.02

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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 June 30, 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)	June 30, 2025			March 31, 2025			June 30, 2024
ASSETS
Cash and due from banks	$	32,834		$	23,422		$	26,681
Interest-bearing deposits with banks		70,275			100,141			59,593
Total Cash and Cash Equivalents		103,109			123,563			86,274
Equity securities with readily determinable fair values		936			933			919
Investment securities available for sale, at estimated fair value		455,317			455,819			418,364
Investment securities held to maturity, at amortized cost (fair value $56,420, $56,219 and $57,026)		64,505			64,554			64,585
Loans held for sale		16,455			21,413			1,801
Total loans, net of unearned income		2,341,816			2,322,209			1,679,600
Less: Allowance for credit losses		(24,353	)		(24,646	)		(17,162	)
Loans, net		2,317,463			2,297,563			1,662,438
Premises and equipment, net		31,581			32,398			25,760
Right of use asset		4,657			5,440			2,278
Restricted investment in bank stocks		13,533			13,560			11,853
Investment in bank-owned life insurance		96,104			98,814			80,841
Investments in low-income housing partnerships		814			846			940
Goodwill		64,449			64,449			44,185
Intangible assets, net		24,694			25,835			8,446
Foreclosed assets held for resale		32			438			406
Other assets		65,879			64,416			48,663
Total Assets	$	3,259,528		$	3,270,041		$	2,457,753
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	568,301		$	562,700		$	479,726
Interest-bearing		1,956,240			1,977,309			1,358,862
Total Deposits		2,524,541			2,540,009			1,838,588
Short-term borrowings		43,041			44,188			48,974
Long-term borrowings		255,354			255,343			255,312
Lease liability		4,946			5,790			2,278
Allowance for unfunded commitments		1,529			1,883			1,310
Other liabilities		34,966			35,945			21,960
Total Liabilities		2,864,377			2,883,158			2,168,422
Stockholders’ Equity:
Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding at June 30, 2025, March 31, 2025 and June 30, 2024		—			—			—
Common stock, $2.50 par value; 20,000,000 shares authorized; 11,017,121, 11,011,051, and 8,934,495 shares issued; 10,478,149, 10,543,671, and 8,545,629 shares outstanding at June 30, 2025, March 31, 2025 and June 30, 2024, respectively		27,539			27,521			22,330
Treasury stock, at cost; 538,972, 467,380, and 388,866 at June 30, 2025, March 31, 2025, and June 30, 2024, respectively		(17,167	)		(14,309	)		(11,101	)
Additional paid-in capital		178,553			178,011			98,230
Retained earnings		239,077			230,978			226,271
Accumulated other comprehensive loss		(32,851	)		(35,318	)		(46,399	)
Total Stockholders’ Equity		395,151			386,883			289,331
Total Liabilities and Stockholders’ Equity	$	3,259,528		$	3,270,041		$	2,457,753

Consolidated Income Statements (Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands, except per share data)		2025			2024			2025			2024
INTEREST AND DIVIDEND INCOME
Loans, including fees
Taxable	$	36,555		$	22,675		$	68,231		$	44,145
Tax-exempt		317			313			609			632
Investment securities:
Taxable		3,283			2,665			6,185			5,576
Tax-exempt		283			284			571			568
Dividends		307			248			647			488
Other		831			684			1,623			1,434
Total Interest and Dividend Income		41,576			26,869			77,866			52,843
INTEREST EXPENSE
Deposits		7,284			2,643			13,280			4,803
Short-term borrowings		341			304			635			643
Long-term borrowings		2,939			2,958			5,849			5,840
Total Interest Expense		10,564			5,905			19,764			11,286
Net Interest Income		31,012			20,964			58,102			41,557
(Reversal of) provision for credit losses		(228	)		(2,990	)		5,740			(2,767	)
(Reversal of) provision for unfunded commitments		(354	)		(259	)		(834	)		(410	)
Net Interest Income after (Reversal of) Provisions for Credit Losses and Unfunded Commitments		31,594			24,213			53,196			44,734
NONINTEREST INCOME
Insurance commissions		2,908			2,747			5,055			4,862
Service charges on deposits		1,179			1,021			2,273			2,012
Wealth management		1,090			1,069			2,150			2,031
Gain from mortgage loans held for sale		1,575			34			2,430			82
ATM debit card charges		905			841			1,736			1,660
Earnings on investment in bank-owned life insurance		627			493			1,207			970
Gain on life insurance proceeds		31			—			285			—
Net gains on sales or calls of investment securities		22			—			22			69
Net gains (losses) on equity securities		3			1			17			(9	)
Other		342			221			691			417
Total Noninterest Income		8,682			6,427			15,866			12,094
NONINTEREST EXPENSES
Salaries and employee benefits		13,693			10,426			26,554			21,594
Equipment		2,539			1,570			4,819			3,299
Net occupancy		1,277			991			2,719			2,121
Professional services		743			529			1,320			1,145
FDIC and regulatory		435			348			836			723
Other tax		220			356			747			726
Intangible assets amortization		1,141			315			1,998			636
Merger-related		1,943			23			9,974			23
Other		3,375			1,833			5,734			3,786
Total Noninterest Expenses		25,366			16,391			54,701			34,053
Income Before Income Taxes		14,910			14,249			14,361			22,775
Income tax expense		3,262			2,970			2,985			4,728
Net Income	$	11,648		$	11,279		$	11,376		$	18,047
PER SHARE DATA
Basic earnings	$	1.11		$	1.32		$	1.12		$	2.12
Diluted earnings	$	1.11		$	1.32		$	1.12		$	2.12
Weighted average shares basic		10,451,469			8,502,268			10,130,666			8,497,686
Weighted average shares diluted		10,487,519			8,540,706			10,157,331			8,526,177

Average Balances, Income and Expenses, Yields and Rates
	Three months ended June 30, 2025								Three months ended March 31, 2025											Three months ended December 31, 2024											Three months ended September 30, 2024											Three months ended June 30, 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	$	2,296,429		$	36,555		6.38	%	$	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	%
Tax-exempt		58,903			401		2.73			57,969			370					2.59			57,683			366					2.52			62,401			394					2.51			64,276			396					2.48
Total Loans2		2,355,332			36,956		6.29			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
Investment Securities:
Taxable		482,933			3,590		2.98			447,986			3,242					2.93			431,338			2,786					2.57			441,135			2,868					2.59			442,390			2,913					2.65
Tax-exempt		54,261			358		2.65			54,659			365					2.71			54,453			359					2.62			54,549			359					2.62			54,644			359					2.64
Total Investments3		537,194			3,948		2.95			502,645			3,607					2.91			485,791			3,145					2.58			495,684			3,227					2.59			497,034			3,272					2.65
Interest-bearing deposits with banks		77,348			831		4.31			73,181			792					4.39			60,104			728					4.82			48,794			670					5.46			50,851			684					5.41
Total Earning Assets		2,969,874			41,735		5.64			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
Cash and due from banks		25,610								20,603											20,413											21,684											21,041
Premises and equipment		32,019								29,903											25,679											25,716											25,903
Other assets		255,624								224,522											181,180											184,105											187,937
Allowance for credit losses		(24,615	)							(19,939	)										(17,153	)										(17,147	)										(20,124	)
Total Assets	$	3,258,512							$	2,969,115										$	2,432,942										$	2,440,116										$	2,439,298
LIABILITIES
Interest-bearing demand deposits	$	612,812		$	514		0.34	%	$	573,341				$	524		0.37		%	$	519,833				$	511		0.39		%	$	518,368				$	552		0.42		%	$	513,163				$	275		0.22		%
Money markets		536,755			2,706		2.02			447,297					1,984		1.80				251,781					747		1.18				246,653					692		1.12				248,191					613		0.99
Savings deposits		342,327			27		0.03			331,103					27		0.03				315,512					34		0.04				318,291					26		0.03				327,274					30		0.04
Time deposits		473,589			4,037		3.42			410,749					3,461		3.42				268,559					1,987		2.94				258,053					1,842		2.84				263,045					1,725		2.64
Total Interest-Bearing Deposits		1,965,483			7,284		1.49			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
Short-term borrowings		44,515			341		3.07			38,721					294		3.08				23,087					12		0.21				38,666					204		2.10				37,256					304		3.28
Long-term borrowings		255,347			2,939		4.62			257,558					2,910		4.58				255,326					2,978		4.64				255,316					2,983		4.65				255,305					2,958		4.66
Total Borrowings		299,862			3,280		4.39			296,279					3,204		4.39				278,413					2,990		4.27				293,982					3,187		4.31				292,561					3,262		4.48
Total Interest-Bearing Liabilities		2,265,345			10,564		1.87			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
Noninterest-bearing demand deposits		563,321								512,966											464,949											477,350											485,351
Other liabilities		39,271								36,934											27,887											29,946											28,348
Stockholders’ Equity		390,575								360,446											306,008											297,473											281,365
Total Liabilities and Stockholders’ Equity	$	3,258,512							$	2,969,115										$	2,432,942										$	2,440,116										$	2,439,298
Taxable Equivalent Net Interest Income					31,171										27,245											21,264											21,100											21,122
Taxable Equivalent Adjustment					(159	)									(155	)										(152	)										(158	)										(158	)
Net Interest Income				$	31,012									$	27,090										$	21,112										$	20,942										$	20,964
Cost of Funds							1.50	%									1.45		%									1.19		%									1.19		%									1.12		%
FTE Net Interest Margin							4.21	%									4.07		%									3.81		%									3.77		%									3.82		%

_______________
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.

Average Balances, Income and Expenses, Yields and Rates
	Six months ended June 30, 2025									Six months ended June 30, 2024
(Dollars in thousands)		Average Balance			Interest1		Yield/ Rate				Average Balance			Interest1		Yield/ Rate
ASSETS
Loans:
Taxable	$	2,188,852		$	68,231		6.29	%		$	1,592,745		$	44,145		5.57	%
Tax-exempt		58,438			771		2.66				65,050		800			2.47
Total Loans2		2,247,290			69,002		6.19				1,657,795		44,945			5.45
Investment Securities:
Taxable		465,556			6,832		2.96				454,928		6,064			2.68
Tax-exempt		54,459			723		2.68				54,692		719			2.64
Total Investments3		520,015			7,555		2.93				509,620		6,783			2.68
Interest-bearing deposits with banks		75,276			1,623		4.35				52,504		1,434			5.49
Total Earning Assets		2,842,581			78,180		5.55				2,219,919		53,162			4.82
Cash and due from banks		23,120									20,790
Premises and equipment		30,967									26,051
Other assets		240,235									187,458
Allowance for credit losses		(22,290	)								(20,044	)
Total Assets	$	3,114,613								$	2,434,174
LIABILITIES
Interest-bearing demand deposits	$	593,185		$	1,038		0.35	%		$	512,932		$	540		0.21	%
Money markets		492,273			4,690		1.92				248,244			1,149		0.93
Savings deposits		336,746			54		0.03				331,244			58		0.04
Time deposits		442,343			7,498		3.42				253,763			3,056		2.42
Total Interest-Bearing Deposits		1,864,547			13,280		1.44				1,346,183			4,803		0.72
Short-term borrowings		41,634			635		3.08				42,170			643		3.07
Long-term borrowings		256,447			5,849		4.60				252,004			5,840		4.66
Total Borrowings		298,081			6,484		4.39				294,174			6,483		4.43
Total Interest-Bearing Liabilities		2,162,628			19,764		1.84				1,640,357			11,286		1.38
Noninterest-bearing demand deposits		538,282									485,999
Other liabilities		38,109									27,626
Stockholders’ Equity		375,594									280,192
Total Liabilities and Stockholders’ Equity	$	3,114,613								$	2,434,174
Taxable Equivalent Net Interest Income					58,416									41,876
Taxable Equivalent Adjustment					(314	)								(319	)
Net Interest Income				$	58,102								$	41,557
Cost of Funds							1.48	%								1.07	%
FTE Net Interest Margin							4.14	%								3.79	%

_______________
¹ Income on interest-earning assets has been computed on a fully taxable equivalent basis (FTE) 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)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Tangible book value per share
Stockholders’ equity	$	395,151		$	386,883		$	303,273		$	306,755		$	289,331
Less: Goodwill and intangible assets		(89,143	)		(90,284	)		(52,023	)		(52,327	)		(52,631	)
Tangible common stockholders’ equity (numerator)	$	306,008		$	296,599		$	251,250		$	254,428		$	236,700
Shares outstanding, less unvested shares, end of period (denominator)		10,442,269			10,506,822			8,515,347			8,510,187			8,507,191
Tangible book value per share	$	29.30		$	28.23		$	29.51		$	29.90		$	27.82
Tangible common equity to tangible assets (TCE/TA Ratio)
Tangible common stockholders’ equity (numerator)	$	306,008		$	296,599		$	251,250		$	254,428		$	236,700
Total assets	$	3,259,528		$	3,270,041		$	2,394,830		$	2,420,914		$	2,457,753
Less: Goodwill and intangible assets		(89,143	)		(90,284	)		(52,023	)		(52,327	)		(52,631	)
Total tangible assets (denominator)	$	3,170,385		$	3,179,757		$	2,342,807		$	2,368,587		$	2,405,122
Tangible common equity to tangible assets		9.65	%		9.33	%		10.72	%		10.74	%		9.84	%
Efficiency Ratio
Noninterest expense	$	25,366		$	29,335		$	18,388		$	18,244		$	16,391
Less: Intangible amortization		1,141			857			304			304			315
Less: Merger-related expense		1,943			8,031			885			1,137			23
Noninterest expense (numerator)	$	22,282		$	20,447		$	17,199		$	16,803		$	16,053
Net interest income	$	31,012		$	27,090		$	21,112		$	20,942		$	20,964
Plus: Total noninterest income		8,682			7,184			5,803			6,833			6,427
Less: Gain on life insurance proceeds		31			254			—			—			—
Less: Net gains on sales or calls of securities		22			—			—			—			—
Less: Net gains (losses) on equity securities		3			14			(28	)		28			1
Total revenue (denominator)	$	39,638		$	34,006		$	26,943		$	27,747		$	27,390
Efficiency ratio		56.21	%		60.13	%		63.83	%		60.56	%		58.61	%

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

FAQ

What were ACNB's earnings per share for Q2 2025?

ACNB reported diluted earnings per share of $1.11 for Q2 2025, compared to $1.32 in Q2 2024.

How much is ACNB's new quarterly dividend?

ACNB's Board approved a quarterly cash dividend of $0.34 per share, representing a 6.3% increase over the same period in 2024.

What is the size of ACNB's new share repurchase program?

ACNB announced a new share repurchase program to buy back up to 314,000 shares, approximately 3.0% of outstanding common stock.

How did ACNB's loan portfolio perform in Q2 2025?

Total loans reached $2.34 billion, increasing by $19.6 million (0.8%) from Q1 2025 and $662.2 million from Q2 2024.

What was ACNB's net interest margin in Q2 2025?

ACNB's fully taxable equivalent net interest margin was 4.21%, up from 4.07% in Q1 2025 and 3.82% in Q2 2024.