ACNB Corporation Reports Record 2026 Second Quarter Financial Results

GETTYSBURG, Pa., July 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 $15.2 million, or $1.49 diluted earnings per share, for the three months ended June 30, 2026 compared to net income of $13.7 million, or $1.32 diluted earnings per share, for the three months ended March 31, 2026 and compared to net income of $11.6 million, or $1.11 diluted earnings per share, for the three months ended June 30, 2025. The financial results for the three months ended June 30, 2025 were impacted by after-tax merger-related expenses of $1.5 million related to the acquisition of Traditions Bancorp, Inc. which was completed on February 1, 2025 (“Acquisition”).

2026 Second Quarter Highlights

• Return on average assets was 1.85% and return on average equity was 14.54% for the three months ended June 30, 2026
• Fully taxable equivalent (“FTE”) net interest margin was 4.56% for the three months ended June 30, 2026 compared to 4.46% for the three months ended March 31, 2026 and 4.21% for the three months ended June 30, 2025
• Total loans outstanding were $2.40 billion at June 30, 2026, an increase of 2.1% from March 31, 2026; equating to an annualized growth rate of 8.6%
• Total noninterest-bearing deposits were $600.7 million at June 30, 2026, an increase of 4.3% from March 31, 2026; equating to an annualized growth rate of 18.3%
• Tangible common equity to tangible assets ratio1 of 10.47% at June 30, 2026 compared to 10.67% at March 31, 2026 and 9.65% at June 30, 2025
• ACNB repurchased 179,407 shares of ACNB common stock in open market transactions during the three months ended June 30, 2026 at a weighted average price of $50.79 per share. There are 253,692 shares remaining in the current plan
• ACNB paid a regular quarterly cash dividend of $0.42 during the three months ended June 30, 2026, a 10.5% increase, or $0.04, over the $0.38 cash dividend paid during the three months ended March 31, 2026, and a 23.5% increase over the $0.34 paid during the three months ended June 30, 2025. In addition to the regular dividend, ACNB paid a one-time special cash dividend of $0.50 per share during the three months ended June 30, 2026

“Our record setting second quarter performance reflects the successful execution of our strategic priorities and the strength of our balanced business model. Record earnings, strong loan production, stable asset quality, and robust noninterest-bearing deposit growth demonstrate the resilience of our franchise and our ability to deliver consistent value for our shareholders,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

“During the quarter, we were pleased to increase our regular quarterly cash dividend, declare a special dividend and continue our share repurchase program, reflecting both our strong financial position and confidence in the long-term outlook for the Company. These results are driven by the exceptional commitment of our employees, whose focus on serving our customers and communities continues to differentiate our organization. Their dedication to executing our strategic plan enables us to deepen customer relationships, capitalize on growth opportunities, and strengthen our competitive position.”

Mr. Helt continued, “As we look ahead, we remain committed to disciplined growth, prudent risk management, and delivering sustainable long-term shareholder value while advancing our vision of being the financial provider of choice in the markets we serve.”

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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, 2026 totaled $34.0 million, an increase of $1.5 million from the three months ended March 31, 2026 and an increase of $3.0 million from the three months ended June 30, 2025. The increases were driven primarily by loan growth, new loans and investment securities funded during the quarter at higher rates than those that paid off or matured, and the continued benefit of lower funding costs. In addition, the yield on investment securities during the quarter compared to the same quarter in the prior year was impacted by a repositioning of the investment securities portfolio completed during the three months ended December 31, 2025. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.8 million, $1.9 million and $2.2 million for the three months ended June 30, 2026, the three months ended March 31, 2026 and the three months ended June 30, 2025, respectively.

Three months ended June 30, 2026 compared to three months ended March 31, 2026

The FTE net interest margin increased 10 basis points from the three months ended March 31, 2026 driven primarily by loan growth, new loans and investment securities funded during the quarter at higher rates than those that paid off or matured, and the continued benefit of lower funding costs.

• Average loan balances increased $54.5 million, driven primarily by growth in the commercial real estate portfolio
• The yields on average loans and average investment securities increased 5 and 2 basis points, respectively, driven primarily by new loans and investment securities funded during the quarter at higher rates than those that paid off or matured
• Average noninterest-bearing deposits increased $28.9 million driven primarily by promotional incentives on commercial checking accounts

Three months ended June 30, 2026 compared to three months ended June 30, 2025

The FTE net interest margin increased 35 basis points from the three months ended June 30, 2025 driven primarily by loan growth, new loans and investment securities funded during the quarter at higher rates than those that paid off or matured, and the continued benefit of lower funding costs. In addition, the repositioning of the investment securities portfolio completed during the three months ended December 31, 2025 contributed to higher yields.

• Average loan balances increased $46.0 million driven primarily by growth in the commercial real estate portfolio
• The yields on average loans and average investment securities increased 11 and 73 basis points, respectively, driven primarily by new loans and investment securities funded during the quarter at higher rates than those that paid off or matured and the repositioning of the investment securities portfolio completed during the three months ended December 31, 2025
• Average noninterest-bearing deposits increased $20.1 million driven primarily by promotional incentives on commercial checking accounts
• Average interest-bearing deposits decreased $14.0 million primarily as a result of attrition of higher cost money market deposits from the Acquisition

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¹ Average balances include non-accrual loans and are net of unearned income.
² Average balances of investment securities is computed at fair value.

Noninterest Income

Explanations for the more significant fluctuations by period and category are detailed below:

Three months ended June 30, 2026 compared to three months ended March 31, 2026

• The increase in insurance commissions was driven primarily by an increase in contingent commission income received during the three months ended June 30, 2026 related to 2025 performance, and, to a lesser extent, new business underwriting and timing of policy renewals
• The increase in gain from mortgage loans held for sale was driven primarily by seasonally higher loan origination volume in the current quarter
• The decrease in gain on assets held for sale was the result of the sale of a building in the prior quarter
• The decrease in gain on life insurance proceeds was the result of a death benefit received in the prior quarter
• The decrease in other was driven primarily by a gain on a loan participation in the prior quarter

Three months ended June 30, 2026 compared to three months ended June 30, 2025

• The increase in wealth management was driven primarily by assets under management growth due to new business generation and positive market impacts
• The increase in earnings on investment in bank-owned life insurance was driven primarily by the purchase of new policies in the fourth quarter of 2025
• The decrease in other was primarily attributable to lower credit card processing and letter of credit fees
  
  

Noninterest Expense

Explanations for the more significant fluctuations by period and category are detailed below:

Three months ended June 30, 2026 compared to three months ended March 31, 2026

• The decrease in salaries and employee benefits was driven primarily by seasonal expenses related to incentive stock awards and ACNB’s liability for unused vacation days in the prior quarter
• The decrease in net occupancy was driven primarily by seasonally higher snow removal charges and utility expenses in the prior quarter
• The decrease in other tax was driven primarily by earned income tax credits received in the current quarter as a result of community investment contributions
• The increase in other was driven primarily by the community investment contributions

Three months ended June 30, 2026 compared to three months ended June 30, 2025

• The decrease in intangible assets amortization was the result of normal attrition
• The increase in other tax was driven primarily by asset growth due to the Acquisition
• The decrease in other was driven primarily by the write-off of stale conversion related items in the prior year
• The decrease in merger-related was driven by the lack of Acquisition related expenses in the current period
   

Loans and Asset Quality

June 30, 2026 compared to March 31, 2026

• The $48.9 million increase in total loans from March 31, 2026 was driven primarily by

• • Commercial real estate growth of $31.2 million, driven primarily by farmland ($31.1 million) and owner-occupied balances ($12.5 million), partially offset by a decline in non-owner occupied balances ($11.0 million)
  • Commercial and industrial growth of $12.4 million, driven primarily by three new relationships in the Lancaster and Berks regions
  • Real estate construction growth of $9.0 million, driven primarily by residential construction and the funding of commitments

• The allowance for credit losses was $24.0 million, an increase of $391 thousand driven primarily by loan growth
• Total non-performing loans to total loans, net of unearned income were 0.41% in both quarters

June 30, 2026 compared to June 30, 2025

• The increase in total loans of $56.3 million was driven primarily by commercial real estate growth of 
  $78.3 million concentrated in farmland ($49.7 million), multi-family ($29.9 million) and owner-occupied balances ($18.0 million), partially offset by a decline in non-owner occupied balances ($21.2 million)
• The allowance for credit losses decreased by $347 thousand driven primarily by the paydown of loans with specific reserves
• Total non-performing loans to total loans, net of unearned income was 0.41% compared to 0.43%
   

Deposits

June 30, 2026 compared to March 31, 2026

• The increase in noninterest-bearing demand deposits was driven primarily by promotional incentives on commercial checking accounts
• The increase in interest-bearing demand deposits was driven primarily by an influx of seasonal deposits
• The decrease in money market balances was driven primarily by attrition of higher cost money market deposits from the Acquisition
• The decrease in time deposits was driven primarily by the pay down of $14.1 million of brokered deposits partially offset by growth in retail time deposits

June 30, 2026 compared to June 30, 2025

• The increase in noninterest-bearing demand deposits was driven primarily by promotional incentives on commercial checking accounts
• The increase in interest-bearing demand deposits was driven primarily by growth in commercial and retail balances and accounts due to new customer relationships acquired through promotional incentives
• The decrease in money market balances was driven primarily by attrition of higher cost money market deposits from the Acquisition

Borrowings

Total borrowings were $323.1 million at June 30, 2026, an increase of $43.9 million and $24.7 million compared to March 31, 2026 and June 30, 2025, respectively. The increases were to fund loan growth.

Stockholders’ Equity

Total stockholders’ equity was $423.3 million at June 30, 2026 compared to $425.5 million at March 31, 2026 and $395.2 million at June 30, 2025. The decrease at June 30, 2026 compared to March 31, 2026 was driven primarily by dividends paid of $9.3 million and common stock repurchases of $9.2 million, partially offset by net income of $15.2 million. The increase at June 30, 2026 compared to June 30, 2025 was driven primarily by growth in retained earnings and changes in unrealized losses in available for sale investment securities. Tangible book value1 per share was $33.42, $32.99 and $29.30 at June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

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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 $3.32 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 #2026-10
July 23, 2026

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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, 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.

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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.

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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.