Group 1 - The article discusses the recent financial results of ACN B Corp. (ACNB), a local bank in Pennsylvania, for the final quarter of 2025 [1] - The Investment Doctor emphasizes the importance of a diversified portfolio that includes both dividend and growth stocks, particularly focusing on European small-cap investments [1] - The investment group European Small Cap Ideas provides exclusive research on European investment opportunities, highlighting high-quality small-cap ideas aimed at capital gains and dividend income [1] Group 2 - The article does not contain any disclosures related to stock positions or business relationships with mentioned companies [2] - There are no recommendations or advice provided regarding the suitability of investments for particular investors [3] - The article clarifies that past performance is not indicative of future results and that the views expressed may not reflect those of Seeking Alpha as a whole [3]

As it had been a while since I had a look at ACN B Corp. ( ACNB ), a local bank in Pennsylvania, the recently released results for the final quarter of 2025 areThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused ...

分组1 - ACNB Corporation announced a quarterly cash dividend of $0.38 per share, reflecting an 18.7% increase from the previous dividend of $0.32 per share [1] - The dividend is payable on March 13, 2026, to shareholders of record as of February 27, 2026 [1] - ACNB Corporation is a financial holding company with total assets of $3.23 billion, operating through ACNB Bank and ACNB Insurance Services, Inc. [2] 分组2 - ACNB Bank, founded in 1857, provides banking and wealth management services through a network of 33 community banking offices [2] - ACNB Insurance Services, Inc. is a full-service insurance agency licensed in 46 states, offering a wide range of insurance products [2]

Core Insights - ACNB reported quarterly earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and showing a significant increase from $0.77 per share a year ago, resulting in an earnings surprise of +6.86% [1] - The company posted revenues of $37.18 million for the quarter ended December 2025, which fell short of the Zacks Consensus Estimate by 7.24%, compared to $26.92 million in the same quarter last year [2] - ACNB has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.23 on revenues of $40.19 million, while for the current fiscal year, the estimate is $5.20 on revenues of $164.53 million [7] - The estimate revisions trend for ACNB was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Banks - Southwest industry, to which ACNB belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ACNB's stock performance [5]

Core Insights - ACNB Corporation reported a net income of $10.8 million, or $1.04 diluted earnings per share, for Q4 2025, an increase from $6.6 million, or $0.77 per share, in Q4 2024, but a decrease from $14.9 million, or $1.42 per share, in Q3 2025 [1][2] - For the full year 2025, net income was $37.1 million, up $5.2 million from $31.9 million in 2024, with core net income increasing to $52.4 million from $33.4 million [1][2] Financial Performance - Core net income for Q4 2025 was $14.0 million, compared to $7.3 million in Q4 2024 and $15.0 million in Q3 2025 [1] - Net interest income for Q4 2025 was $32.9 million, up $714 thousand from Q3 2025 and $11.7 million from Q4 2024 [6][7] - The FTE net interest margin for Q4 2025 was 4.36%, a 9 basis points increase from Q3 2025 and a 55 basis points increase from Q4 2024 [6][7] Acquisition Impact - The financial results for 2025 were significantly impacted by the acquisition of Traditions Bancorp, Inc., completed on February 1, 2025, which contributed to increased loan balances and net interest income [2][4] - Total average loans increased by $687.1 million in Q4 2025 compared to Q4 2024, primarily due to the acquisition [7][8] Noninterest Income and Expenses - Noninterest income for Q4 2025 was $4.3 million, a decrease of $4.1 million from Q3 2025 and $1.5 million from Q4 2024, largely due to a repositioning of the investment securities portfolio [9] - Noninterest expenses for Q4 2025 increased by $5.1 million compared to Q4 2024, driven primarily by the acquisition and related expenses [14][15] Asset Quality and Capital - Total loans outstanding were $2.33 billion at December 31, 2025, an increase of $647.6 million from December 31, 2024 [16] - The allowance for credit losses was $23.7 million, up $6.4 million from December 31, 2024, reflecting changes in economic forecast assumptions [16] - Total stockholders' equity increased to $420.0 million at December 31, 2025, compared to $303.3 million at December 31, 2024, driven by net income and the acquisition [19] Stock Performance and Dividends - ACNB's common stock share price increased by 21% during 2025, and the quarterly dividend was raised by $0.06 per share, or 19%, from Q4 2024 to Q4 2025 [5] - The company has consistently increased its cash dividends per share since 2017, with a total increase of 90% [5]

Financial Performance - ACNB reported net income of $10.8 million, or $1.04 diluted earnings per share, for the three months ended December 31, 2025, compared to net income of $6.6 million, or $0.77 diluted earnings per share, for the same period in 2024, representing a 63.6% increase in net income [2]. - Core net income was $14.0 million for the three months ended December 31, 2025, compared to $7.3 million for the same period in 2024, indicating a 92.0% increase [2]. - The Corporation reported net income of $37.1 million, or $3.60 diluted earnings per share, for the twelve months ended December 31, 2025, an increase of $5.2 million compared to the twelve months ended December 31, 2024 [2]. - Core net income for the twelve months ended December 31, 2025, was $52.4 million, up from $33.4 million for the same period in 2024, reflecting a 56.9% increase [2]. - The company reported a revenue of $2.5 billion for Q3 2023, representing a 15% year-over-year growth [3]. - The company provided a forward guidance of $2.7 billion in revenue for Q4 2023, indicating a projected growth of 8% [3]. - The company reported a net income for the period of $37.1 million, influenced by common stock equity issued in the acquisition and a $19.5 million change in unrealized gains in available-for-sale investment securities [12]. - The company reported a net income of $I million for the quarter, reflecting a J% increase from the previous year [26]. Investment and Acquisitions - ACNB completed a repositioning of its investment securities portfolio by selling $74.6 million in book value of available-for-sale investment securities, resulting in an after-tax loss of $2.8 million [2]. - The financial results for 2025 were impacted by the acquisition of Traditions Bancorp, Inc., completed on February 1, 2025 [2]. - The increase in core net income for the twelve months ended December 31, 2025, was driven by improved operational efficiencies and strategic growth initiatives [2]. - ACNB's investment strategy continues to focus on enhancing shareholder value through prudent management of its investment portfolio and strategic acquisitions [2]. - The company is exploring potential acquisitions to enhance its market position, with a focus on tech startups [3]. - The company is exploring potential acquisitions to enhance its market position and diversify its product offerings [26]. Operational Efficiency - The fully taxable equivalent (FTE) net interest margin was 4.23% for the twelve months ended December 31, 2025, compared to 3.79% for the twelve months ended December 31, 2024 [2]. - The gross margin improved to 45%, up from 42% in the previous quarter, reflecting better cost management [3]. - The efficiency ratio improved to 53.39% from 51.96% in the previous quarter, indicating better cost management [16]. - The increase in core net income for the twelve months ended December 31, 2025, was driven by improved operational efficiencies and strategic growth initiatives [2]. Loans and Deposits - Total loans outstanding were $2.33 billion at December 31, 2025, a decrease of $6.1 million from September 30, 2025, and an increase of $647.6 million from December 31, 2024 [10]. - Total deposits amounted to $2.45 billion at December 31, 2025, a decrease of $15.7 million from September 30, 2025, and an increase of $657.7 million from December 31, 2024 [10]. - Total average loans increased by $687.1 million for the three months ended December 31, 2025, compared to the same period in 2024 [6]. - Total average interest-bearing deposits increased by $555.2 million for the three months ended December 31, 2025, compared to the same period in 2024 [6]. - Non-performing loans as a percentage of total loans increased from 0.40% at December 31, 2024, to 0.46% at December 31, 2025 [10]. Non-Interest Income and Expenses - Noninterest income for the three months ended December 31, 2025 was $4.3 million, a decrease of $4.1 million from the previous quarter and a decrease of $1.5 million from the same quarter last year [1]. - Non-interest expense for the three months ended December 31, 2025, increased by $5.1 million compared to the previous period [8]. - Salaries and employee benefits expense increased by $9.9 million during the twelve months ended December 31, 2025, compared to the same period in 2024, primarily due to additional employees attributable to the acquisition [1]. - Merger-related expenses totaled $10.7 million for the twelve months ended December 31, 2025, compared to $2.0 million for the same period in 2024 [1]. Shareholder Value - The quarterly cash dividend increased by $0.06 per share or 19% from the fourth quarter of 2024 to the fourth quarter of 2025 [4]. - The Corporation has increased the amount of cash dividends paid out per share each year since 2017, going from $0.20 to $0.38 [4]. - The Corporation recognized a 21% increase in its common stock share price during the calendar year [4]. - Tangible book value per share was $32.22 at December 31, 2025, compared to $30.87 at September 30, 2025, and $29.51 at December 31, 2024 [12]. Risk Factors and Forward-Looking Statements - Risks include impacts from inflation, banking instability, regulatory changes, and economic conditions affecting loan customers' repayment ability [14]. - Forward-looking statements include projections regarding future earnings, expenses, and growth prospects, which are subject to various risks and uncertainties [14]. - Investors are advised to review risk factors in documents filed with the SEC, including Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q [14].

Core Viewpoint - ACNB is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the consensus outlook suggesting a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report for ACNB is expected to show quarterly earnings of $1.26 per share, reflecting a year-over-year increase of 63.6% [3]. - Revenues are projected to reach $40.09 million, which is an increase of 48.9% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate for ACNB has been revised 1.09% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for ACNB is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.93%, suggesting a bullish outlook on the company's earnings prospects [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 2 (Buy) [10]. - ACNB's combination of a positive Earnings ESP and a Zacks Rank of 2 indicates a high likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, ACNB exceeded the expected earnings of $1.20 per share by delivering $1.42, resulting in a surprise of +18.33% [13]. - Over the past four quarters, ACNB has beaten consensus EPS estimates two times [14]. Industry Context - In the broader context of the Zacks Banks - Southwest industry, Banc of California is expected to report earnings of $0.38 per share, reflecting a year-over-year change of +35.7% [18]. - Banc of California's revenue is projected to be $292.72 million, up 10.8% from the previous year, but it has a negative Earnings ESP of -2.63%, making it difficult to predict an earnings beat [19][20].

Financial Performance - Net income for the three months ended September 30, 2025, was $14.9 million, an increase of $7.7 million compared to $7.2 million for the same period in 2024[128]. - Net income for the nine months ended September 30, 2025, was $26.2 million, or $2.56 diluted earnings per share, compared to $25.3 million, or $2.96 diluted earnings per share for the same period in 2024[140]. - Noninterest income was $8.4 million for the three months ended September 30, 2025, an increase of $1.6 million compared to the same period in 2024[126]. - Noninterest income totaled $24.3 million for the nine months ended September 30, 2025, compared to $18.9 million for the same period in 2024, reflecting a 28.3% increase[150]. Interest Income and Expenses - Net interest income increased to $32.1 million for the three months ended September 30, 2025, compared to $20.9 million for the same period in 2024, reflecting an increase of $11.2 million[121]. - Net interest income totaled $90.2 million for the nine months ended September 30, 2025, an increase of $27.7 million from $62.5 million for the same period in 2024[141]. - Total FTE interest income increased by $15.3 million for the three months ended September 30, 2025, compared to the same period in 2024, driven by a $10.7 million increase in average interest-earning assets and a $4.5 million increase in yield[134]. - Total interest expense rose by $4.1 million during the three months ended September 30, 2025, with average interest-bearing deposits increasing by $575.6 million[135]. - Total interest expense rose by $12.5 million during the nine months ended September 30, 2025, driven by a $537.6 million increase in average interest-bearing deposits[147]. Asset and Loan Growth - Average loans increased by $675.4 million for the three months ended September 30, 2025, compared to the same period in 2024[126]. - Average loans increased by $618.5 million, contributing $26.1 million to the increase in FTE interest income, while the yield on total loans increased by 74 basis points, contributing $11.8 million[146]. - Total assets increased to $3.17 billion as of September 30, 2025, compared to $2.44 billion for the same period in 2024[144]. - Total loans, net of unearned income, increased by $653.7 million, or 38.8%, from December 31, 2024, driven primarily by $648.5 million in loans purchased at the Acquisition date[159]. Credit Quality - The allowance for credit losses was $23.7 million at September 30, 2025, up from $17.3 million at December 31, 2024[126]. - Non-performing loans were $10.0 million, or 0.43% of total loans, at September 30, 2025, compared to $6.6 million, or 0.39%, at September 30, 2024[126]. - The provision for credit losses for the nine months ended September 30, 2025, was $5.2 million, compared to a reversal of $2.7 million for the same period in 2024[126]. - The provision for credit losses was $5.2 million for the nine months ended September 30, 2025, compared to reversals of $2.7 million for the same period in 2024[149]. Expenses and Acquisitions - Noninterest expenses were $22.4 million for the three months ended September 30, 2025, an increase of $4.1 million compared to the same period in 2024[126]. - Total noninterest expenses increased by $24.8 million, or 47.4%, during the nine months ended September 30, 2025, driven primarily by the Acquisition[151]. - Salaries and employee benefits increased by $7.1 million, or 21.9%, during the nine months ended September 30, 2025, primarily due to the Acquisition[151]. - Merger-related expenses included $10.1 million for the nine months ended September 30, 2025, reflecting costs associated with the Acquisition[151]. Capital and Equity - Total stockholders' equity rose to $408.6 million at September 30, 2025, compared to $303.3 million at December 31, 2024, driven primarily by the issuance of 2,035,246 shares of common stock valued at $83.6 million for the acquisition of Traditions[175]. - The Corporation recognized income taxes of $7.0 million for the nine months ended September 30, 2025, reflecting an effective tax rate (ETR) of 21.1%, down from 21.5% in the same period of 2024[152]. - The capital ratios as of September 30, 2025, indicate that ACNB Corporation's Tier 1 leverage capital ratio was 11.22%, significantly above the minimum requirement of 4.00%[178]. - Common Equity Tier 1 capital ratio for ACNB Corporation was 14.45%, exceeding the minimum requirement of 4.50%[178]. Deposits and Borrowings - Total deposits increased by $673.4 million, or 37.6%, to $2.47 billion at September 30, 2025, primarily due to the Acquisition[171]. - Short-term borrowings increased to $80.5 million as of September 30, 2025, up from $15.8 million at December 31, 2024, representing a growth of 408.2%[173]. - Long-term borrowings remained stable at $255.4 million as of September 30, 2025, compared to $255.3 million at December 31, 2024[174]. - ACNB's banking subsidiary had a borrowing capacity of approximately $1.29 billion from the FHLB, with $1.01 billion available as of September 30, 2025[181]. Investment and Securities - Total investment securities rose by 14.6% to $526.6 million at September 30, 2025, compared to $459.5 million at December 31, 2024[155]. - Securities sold under repurchase agreements increased to approximately $27.1 million at September 30, 2025, compared to $15.8 million at December 31, 2024, reflecting a growth of 71.4%[183].

Core Viewpoint - ACNB has received an upgrade to a Zacks Rank 1 (Strong 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]. - ACNB's earnings per share (EPS) for the fiscal year ending December 2025 is projected to be $4.99, showing no year-over-year change, but the Zacks Consensus Estimate has increased by 7% over the past three months [8]. Investment Implications - The upgrade reflects an improvement in ACNB's underlying business, suggesting that investors may push the stock price higher due to this positive trend [5][10]. - 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 [7][9].

Core Insights - ACNB reported quarterly earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and showing a significant increase from $0.84 per share a year ago, resulting in an earnings surprise of +18.33% [1] - The company achieved revenues of $40.55 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.64% and up from $27.77 million year-over-year [2] - ACNB shares have increased approximately 11.5% year-to-date, compared to the S&P 500's gain of 13.9% [3] Earnings Outlook - The future performance of ACNB's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $1.17 on revenues of $39.38 million, and for the current fiscal year, it is $4.67 on revenues of $153.03 million [7] Industry Context - The Zacks Industry Rank places the Banks - Southwest sector in the top 24% of over 250 Zacks industries, indicating a favorable environment for stock performance [8] - Another company in the same industry, Prosperity Bancshares, is expected to report quarterly earnings of $1.45 per share, reflecting a year-over-year increase of +8.2% [9]