Acnb (ACNB -0.79%), a regional community banking firm focused on Pennsylvania and northern Maryland, released its earnings for the second quarter of 2025 on July 24, 2025. GAAP revenue was $39.7 million, beating the $38.85 million GAAP analyst estimate. However, diluted earnings per share (GAAP) fell short of consensus at $1.11 (vs. $1.15 expected) and declined from $1.32 in the same period last year. This quarter marked the first full period with integrated operations following its acquisition of Tradition ...

ACNB (ACNB) came out with quarterly earnings of $1.11 per share, missing the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.63%. A quarter ago, it was expected that this bank would post earnings of $0.94 per share when it actually produced earnings of $1.03, delivering a surprise of +9.57%.Over the last four quarters, the company has surpassed ...

Core Insights - ACNB Corporation reported a net income of $11.6 million, or $1.11 diluted earnings per share, for Q2 2025, showing an increase from $11.3 million, or $1.32 diluted earnings per share, in Q2 2024, and a recovery from a net loss of $272 thousand in Q1 2025 [1][9][21] Financial Performance - Net interest income for Q2 2025 was $31.0 million, up $10.0 million from Q2 2024 and $3.9 million from Q1 2025, primarily driven by the acquisition of Traditions Bancorp [6][21] - The fully taxable equivalent (FTE) net interest margin increased to 4.21%, a rise of 39 basis points from Q2 2024 and 14 basis points from Q1 2025 [6][9] - Noninterest income reached $8.7 million, an increase of $2.3 million from Q2 2024 and $1.5 million from Q1 2025, with significant contributions from mortgage loans and insurance commissions [7][21] Asset Quality and Loans - Total loans outstanding were $2.34 billion at June 30, 2025, reflecting an increase of $19.6 million from Q1 2025 and $662.2 million from Q2 2024, with growth across various loan categories attributed to the acquisition [10][21] - The allowance for credit losses was $24.4 million, a decrease of $293 thousand from Q1 2025 and an increase of $7.2 million from Q2 2024 [10][21] - Non-performing loans were $10.1 million, or 0.43% of total loans, stable compared to Q1 2025 but increased from $3.1 million, or 0.19%, in Q2 2024 [11][21] Deposits and Equity - Total deposits were $2.52 billion at June 30, 2025, a decrease of $15.5 million from Q1 2025 but an increase of $686.0 million from Q2 2024 [12][21] - Stockholders' equity rose to $395.2 million, up from $386.9 million in Q1 2025 and $289.3 million in Q2 2024, driven by net income and stock repurchases [14][21] Capital Management - The Board of Directors declared a quarterly cash dividend of $0.34 per share, reflecting a 6.3% increase over the same period in 2024 [9][21] - ACNB repurchased 71,592 shares during Q2 2025 and announced a plan to repurchase up to 314,000 shares, approximately 3.0% of outstanding shares [16][21]

[ACNB Corporation Q2 2025 Financial Results](index=1&type=section&id=ACNB_Corporation_Q2_2025_Financial_Results) [Financial Highlights](index=1&type=section&id=Financial_Highlights) The corporation reported strong Q2 2025 results driven by the Traditions Bancorp acquisition, with significant improvements in key financial metrics Q2 2025 Earnings Summary | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Net Income (Loss) | $11.6 million | $11.3 million | ($272 thousand) | | Diluted EPS (Loss) | $1.11 | $1.32 | ($0.03) | - The financial results for Q1 2025 were significantly impacted by two items related to the Traditions Bancorp acquisition: a **$4.2 million** provision for credit losses (net of taxes) and **$6.2 million** in merger-related expenses (net of taxes)[2](index=2&type=chunk) Q2 2025 Key Performance Indicators | Indicator | Value | Comparison Period | Comparison Value | | :--- | :--- | :--- | :--- | | FTE Net Interest Margin | 4.21% | Q1 2025 | 4.07% | | Return on Average Assets | 1.43% | - | - | | Return on Average Equity | 11.96% | - | - | | Total Loans | $2.34 billion | Q1 2025 | +0.8% | | Tangible Common Equity / Tangible Assets | 9.65% | Q1 2025 | 9.33% | [Management Commentary](index=3&type=section&id=Management_Commentary) Management highlighted strong profitability and successful acquisition integration while focusing on navigating future economic uncertainties - The second quarter of 2025 represents the **first full quarter of combined operations** including Traditions Bank, with the system conversion now complete[7](index=7&type=chunk) - The company is focused on managing through uncertain national economic challenges by **diversifying revenue streams** via ACNB Insurance Services, Wealth Management teams, and Traditions Mortgage[8](index=8&type=chunk) - Due to the acquisition of Traditions Bancorp, financial results for periods ended June 30, 2025, **may not be directly comparable** to prior reported periods[8](index=8&type=chunk) [Capital Management](index=3&type=section&id=Capital_Management) The corporation actively managed capital through a dividend increase and continued share repurchases, approving a new buyback plan - The Board of Directors declared a quarterly cash dividend of **$0.34 per share** for Q2 2025, a $0.02 or **6.3% increase** over the same period in 2024[9](index=9&type=chunk) - ACNB repurchased **71,592 shares** of its common stock in open market transactions during Q2 2025[9](index=9&type=chunk)[22](index=22&type=chunk) - On June 18, 2025, the Board approved a new plan to repurchase up to **314,000 shares**, or approximately 3.0% of outstanding common stock, superseding all earlier plans[9](index=9&type=chunk)[22](index=22&type=chunk) [Financial Performance Analysis](index=4&type=section&id=Financial_Performance_Analysis) Performance was driven by the acquisition, with substantial growth in net interest income and noninterest income offset by higher expenses [Net Interest Income and Margin](index=4&type=section&id=Net_Interest_Income_and_Margin) Net Interest Income and Margin Performance | Metric | Q2 2025 | Change vs Q2 2024 | Change vs Q1 2025 | | :--- | :--- | :--- | :--- | | Net Interest Income | $31.0M | +$10.0M | +$3.9M | | FTE Net Interest Margin | 4.21% | +39 bps | +14 bps | | Yield on Total Loans | 6.29% | +76 bps | +21 bps | | Rate on Interest-Bearing Deposits | 1.49% | +70 bps | +11 bps | - Increases in net interest income and margin were primarily driven by the Traditions acquisition, with an accretion impact of **$2.2 million** in Q2 2025[10](index=10&type=chunk) [Noninterest Income](index=5&type=section&id=Noninterest_Income) Noninterest Income Breakdown (Q2 2025) | Category | Amount | Change vs Q2 2024 | Change vs Q1 2025 | | :--- | :--- | :--- | :--- | | **Total Noninterest Income** | **$8.7M** | **+$2.3M** | **+$1.5M** | | Gain from mortgage loans | $1.6M | +$1.5M | +$720k | | Insurance commissions | $2.9M | +$161k | +$761k | | Service charges on deposits | $1.2M | +$158k | +$85k | - The increase in insurance commissions was driven by the timing of policy renewals, new business, and seasonally stronger contingent commission income[12](index=12&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest_Expense) Noninterest Expense Breakdown (Q2 2025) | Category | Amount | Change vs Q2 2024 | Change vs Q1 2025 | | :--- | :--- | :--- | :--- | | **Total Noninterest Expense** | **$25.4M** | **+$9.0M** | **-$4.0M** | | Merger-related expenses | $1.9M | +$1.9M | -$6.1M | | Salaries and employee benefits | $13.7M | +$3.3M | +$832k | - The decrease in noninterest expense from Q1 2025 was primarily due to **lower merger-related expenses**, which were $8.0 million in the prior quarter[13](index=13&type=chunk) - The increase in salaries and benefits was driven by a **larger number of employees** from the acquisition, merit increases, and higher mortgage commissions[13](index=13&type=chunk)[14](index=14&type=chunk) [Balance Sheet and Asset Quality Analysis](index=7&type=section&id=Balance_Sheet_and_Asset_Quality_Analysis) The balance sheet expanded due to the acquisition, showing loan growth and stable asset quality, with stockholders' equity bolstered by net income [Loans and Asset Quality](index=7&type=section&id=Loans_and_Asset_Quality) Loan Portfolio and Asset Quality | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Loans | $2.34B | $2.32B | $1.68B | | Allowance for Credit Losses | $24.4M | $24.6M | $17.2M | | Non-performing Loans / Total Loans | 0.43% | 0.43% | 0.19% | | Annualized Net Charge-offs | 0.01% | 0.01% | 0.00% | - The year-over-year increase in loans and non-performing loans was **primarily driven by the Traditions acquisition**[15](index=15&type=chunk)[16](index=16&type=chunk) - The allowance for credit losses decreased slightly from Q1 2025 due to the incorporation of **post-COVID lower credit loss history** in the bank's model[15](index=15&type=chunk) [Deposits and Borrowings](index=7&type=section&id=Deposits_and_Borrowings) Deposits and Borrowings Summary | Metric | June 30, 2025 | Change vs March 31, 2025 | Change vs June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Deposits | $2.52B | -$15.5M | +$686.0M | | Noninterest-bearing Deposits | $568.3M | +$5.6M | +$88.6M | | Total Borrowings | $298.4M | -$1.1M | -$5.9M | - The decrease in total deposits from Q1 2025 was mainly caused by the **withdrawal of a significant 1031 Exchange deposit** from a commercial customer[18](index=18&type=chunk) - To partially offset the large deposit withdrawal, ACNB Bank issued **$20.0 million in brokered time deposits** in June 2025[18](index=18&type=chunk) [Stockholders' Equity](index=8&type=section&id=Stockholders_Equity) Stockholders' Equity and Tangible Book Value | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Stockholders' Equity | $395.2M | $386.9M | $289.3M | | Tangible Book Value per Share | $29.30 | $28.23 | $27.82 | - The increase in equity from Q1 2025 was driven by **net income of $11.6 million**, partially offset by $3.5 million in dividends and $3.1 million in stock repurchases[20](index=20&type=chunk) - The year-over-year increase in equity was primarily due to the **common stock issued for the Traditions acquisition**[20](index=20&type=chunk) [Consolidated Financial Statements](index=13&type=section&id=Consolidated_Financial_Statements) The statements detail the corporation's financial position and performance, reflecting the significant impact of the Traditions acquisition [Selected Financial Data](index=13&type=section&id=Selected_Financial_Data) Selected Financial Data (As of June 30, 2025) | Metric | June 30, 2025 | | :--- | :--- | | Total Assets | $3,259,528 thousand | | Total loans, net | $2,341,816 thousand | | Deposits | $2,524,541 thousand | | Stockholders' equity | $395,151 thousand | Selected Income Statement Data (For Three Months Ended June 30, 2025) | Metric | Amount | | :--- | :--- | | Net interest income | $31,012 thousand | | Noninterest income | $8,682 thousand | | Noninterest expenses | $25,366 thousand | | Net income | $11,648 thousand | [Consolidated Statements of Condition (Balance Sheet)](index=15&type=section&id=Consolidated_Statements_of_Condition_%28Balance_Sheet%29) Assets (As of June 30, 2025 vs June 30, 2024) | Asset Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Cash and Cash Equivalents | $103,109 thousand | $86,274 thousand | | Loans, net | $2,317,463 thousand | $1,662,438 thousand | | Goodwill | $64,449 thousand | $44,185 thousand | | **Total Assets** | **$3,259,528 thousand** | **$2,457,753 thousand** | Liabilities and Stockholders' Equity (As of June 30, 2025 vs June 30, 2024) | Liability/Equity Category | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Deposits | $2,524,541 thousand | $1,838,588 thousand | | Total Borrowings | $298,395 thousand | $304,286 thousand | | Total Stockholders' Equity | $395,151 thousand | $289,331 thousand | | **Total Liabilities and Stockholders' Equity** | **$3,259,528 thousand** | **$2,457,753 thousand** | [Consolidated Income Statements](index=17&type=section&id=Consolidated_Income_Statements) Income Statement (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | $31,012 thousand | $20,964 thousand | | Total Noninterest Income | $8,682 thousand | $6,427 thousand | | Total Noninterest Expenses | $25,366 thousand | $16,391 thousand | | **Net Income** | **$11,648 thousand** | **$11,279 thousand** | Income Statement (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | $58,102 thousand | $41,557 thousand | | Total Noninterest Income | $15,866 thousand | $12,094 thousand | | Total Noninterest Expenses | $54,701 thousand | $34,053 thousand | | **Net Income** | **$11,376 thousand** | **$18,047 thousand** | [Average Balances, Yields, and Rates](index=19&type=section&id=Average_Balances_Yields_and_Rates) Quarterly FTE Net Interest Margin Analysis (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Yield on Total Earning Assets | 5.64% | 4.89% | | Cost of Interest-Bearing Liabilities | 1.87% | 1.44% | | **FTE Net Interest Margin** | **4.21%** | **3.82%** | Year-to-Date FTE Net Interest Margin Analysis (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Yield on Total Earning Assets | 5.55% | 4.82% | | Cost of Interest-Bearing Liabilities | 1.84% | 1.38% | | **FTE Net Interest Margin** | **4.14%** | **3.79%** | [Non-GAAP Reconciliation](index=23&type=section&id=Non-GAAP_Reconciliation) This section reconciles non-GAAP measures to provide useful comparative information by excluding items like goodwill and merger expenses Tangible Common Equity to Tangible Assets Ratio (TCE/TA) | Period | Ratio | | :--- | :--- | | June 30, 2025 | 9.65% | | March 31, 2025 | 9.33% | | June 30, 2024 | 9.84% | Tangible Book Value Per Share | Period | Value | | :--- | :--- | | June 30, 2025 | $29.30 | | March 31, 2025 | $28.23 | | June 30, 2024 | $27.82 | [About ACNB Corporation](index=9&type=section&id=About_ACNB_Corporation) ACNB Corporation is a $3.26 billion financial holding company operating banking and insurance subsidiaries across Pennsylvania and Maryland - ACNB Corporation is an independent financial holding company with **$3.26 billion in assets**[23](index=23&type=chunk) - The company operates ACNB Bank, which includes Traditions Bank and Traditions Mortgage, and ACNB Insurance Services, Inc[23](index=23&type=chunk) [Safe Harbor and Forward-Looking Statements](index=9&type=section&id=Safe_Harbor_and_Forward-Looking_Statements) This section cautions that future projections are subject to risks and uncertainties, and actual results may differ materially - The press release contains **forward-looking statements** regarding future earnings, plans, and economic assumptions, which are subject to significant risks and uncertainties[24](index=24&type=chunk) - Key risks include **inflation, banking instability, integration of acquisitions**, economic conditions in market areas, and cybersecurity threats[25](index=25&type=chunk)[26](index=26&type=chunk) - The financial information is subject to change pending the filing of the Form 10-Q with the SEC, and readers are cautioned not to place undue reliance on forward-looking statements[26](index=26&type=chunk)

Core Viewpoint - ACNB has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, ACNB is expected to earn $4.43 per share, with a 14.4% increase in the Zacks Consensus Estimate over the past three months [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, and changes in these estimates can lead to significant buying or selling activity, impacting stock prices [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the system [7].

Financial Highlights - Total assets reached $3.3 billion[6] - Total loans amounted to $2.3 billion[6] - Market capitalization stood at $443 million[6] - Return on average assets (ROAA) was 1.36% for the most recent quarter (MRQ)[6] - Return on average equity (ROAE) was 11.23% for the MRQ[6] - Net interest margin (NIM) on a fully taxable equivalent (FTE) basis was 4.07% for the MRQ[6] Loan Portfolio & Deposits - Commercial loans constituted approximately 68% of the total loan portfolio[8] - Non-interest bearing demand deposits represented approximately 22% of the deposit portfolio[8] - Core deposits accounted for 97.1% of total deposits, with total deposits at $2.5 billion as of MRQ end[22] Noninterest Income & Expenses - Noninterest income was $7.2 million for the MRQ[26] - Noninterest income accounted for approximately 20.3% of revenues[8] - The company's efficiency ratio was 60.13% for the first quarter of 2025[37]

Core Viewpoint - ACNB Corporation has announced a new stock repurchase plan to buy back up to 314,000 shares, approximately 3.0% of its outstanding common stock, which will be funded by available capital [1] Company Overview - ACNB Corporation is an independent financial holding company with total assets of $3.27 billion, headquartered in Gettysburg, PA [2] - The company operates through its wholly-owned subsidiaries, including ACNB Bank and ACNB Insurance Services, Inc., providing banking and wealth management services across multiple locations [2] - ACNB Bank has a network of 33 community banking offices and one loan office in Pennsylvania and Maryland, while ACNB Insurance Services operates as a full-service insurance agency licensed in 46 states [2]

Group 1 - ACNB Corporation is the financial holding company for ACNB Bank located in Pennsylvania, which previously operated 27 community banking offices before acquiring Traditions Bancorp [1] - Traditions Bancorp was also headquartered in Pennsylvania, indicating a consolidation within the local banking sector [1] Group 2 - The investment group European Small Cap Ideas focuses on high-quality investment opportunities in the small-cap space, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Core Viewpoint - ACNB has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [3]. - Rising earnings estimates for ACNB suggest an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. Importance of Earnings Estimate Revisions - Empirical research supports the idea that tracking earnings estimate revisions can lead to rewarding investment decisions, with the Zacks Rank system effectively utilizing this data [5]. - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. Specific Earnings Estimates for ACNB - For the fiscal year ending December 2025, ACNB is projected to earn $4.43 per share, reflecting an 18.8% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for ACNB has risen by 3.4%, indicating a positive trend in earnings expectations [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [8]. - ACNB's upgrade to a Zacks Rank 1 places it in the top 5% of stocks covered by Zacks, suggesting a strong potential for market-beating returns in the near term [9].

Company Overview - ACNB is based in Gettysburg and operates in the Finance sector, with a year-to-date share price change of 10.47% [3] - The company currently pays a dividend of $0.32 per share, resulting in a dividend yield of 2.91%, which is significantly higher than the Banks - Southwest industry's yield of 1.16% and the S&P 500's yield of 1.52% [3] Dividend Information - ACNB's current annualized dividend of $1.28 represents a 1.6% increase from the previous year [4] - Over the past five years, ACNB has increased its dividend four times, achieving an average annual increase of 6.40% [4] - The company's current payout ratio is 32%, indicating that it pays out 32% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for ACNB appears strong, with the Zacks Consensus Estimate for 2025 projected at $4.43 per share, reflecting an expected increase of 18.77% from the previous year [5] Investment Appeal - ACNB is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]