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]

Group 1 - CME Group is one of 858 individual stocks in the Finance sector and is ranked 6 in the Zacks Sector Rank [2] - CME Group currently has a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3] - The Zacks Consensus Estimate for CME's full-year earnings has increased by 6.9% in the past quarter, reflecting stronger analyst sentiment [4] Group 2 - CME Group has gained approximately 19% year-to-date, outperforming the average Finance sector gain of 6.3% [4] - CME Group is part of the Securities and Exchanges industry, which has seen a year-to-date gain of about 16.1%, indicating better performance compared to its industry peers [6] - Another Finance stock, ACNB, has also outperformed the sector with a year-to-date return of 10.5% and a Zacks Rank of 2 (Buy) [5][6]

Financial Performance - Net loss for the three months ended March 31, 2025 was $272 thousand compared to net income of $6.8 million for the same period of 2024, a decrease of $7.0 million [118]. - Noninterest income was $7.2 million for the three months ended March 31, 2025, an increase of $1.5 million from $5.7 million for the same period of 2024 [123]. - Noninterest expenses increased to $29.3 million for the three months ended March 31, 2025, compared to $17.7 million in the same period of 2024 [123]. - The Corporation recognized an income tax benefit of $277 thousand during the three months ended March 31, 2025, compared to a provision for income taxes of $1.8 million in the same period of 2024, attributed to a net loss from the Acquisition [135]. Interest Income and Margin - Net interest income increased to $27.1 million for the three months ended March 31, 2025, up $6.5 million from $20.6 million in the same period of 2024 [118]. - The net interest margin increased to 4.07% for the three months ended March 31, 2025, compared to 3.77% in the same period of 2024, an increase of 30 basis points [118]. - Total interest income increased by $10.3 million during the three months ended March 31, 2025, compared to the same period in 2024, driven by a $6.9 million increase from the average balance of interest-earning assets and a $3.4 million increase from the yield on interest-earning assets [128]. - Total interest expense rose by $3.8 million during the same period, with average interest-bearing deposits increasing by $421.8 million, leading to a cost of interest-bearing deposits of 1.38%, up 73 basis points from the previous year [129]. Loans and Credit Losses - Average loans increased by $499.3 million for the three months ended March 31, 2025, driven by the acquisition of Traditions [123]. - The provision for credit losses was $6.0 million for the three months ended March 31, 2025, compared to $223 thousand for the same period of 2024 [123]. - The allowance for credit losses was $24.6 million at March 31, 2025, up from $17.3 million at December 31, 2024 [123]. - Non-performing loans were $10.0 million, or 0.43% of total loans at March 31, 2025, compared to $6.8 million, or 0.40% at December 31, 2024 [123]. Assets and Deposits - Total assets reached $3.27 billion as of March 31, 2025, up from $2.39 billion at December 31, 2024, with the Acquisition contributing $877.7 million [137]. - Total deposits rose by $747.5 million, or 41.7%, to $2.54 billion as of March 31, 2025, primarily due to the Acquisition [152]. - Time deposits increased by $204.1 million, or 74.8%, with brokered deposits totaling $54.0 million at March 31, 2025 [152]. - Total loans increased to $2.14 billion with a yield of 6.08% for the three months ended March 31, 2025, compared to $1.64 billion and a yield of 5.37% in 2024 [127]. Equity and Capital Ratios - Total stockholders' equity rose to $386.9 million at March 31, 2025, compared to $303.3 million at December 31, 2024, primarily due to the issuance of 2,035,246 shares of common stock for $83.6 million to acquire Traditions [156]. - The Corporation's Tier 1 leverage capital ratio was 11.81% as of March 31, 2025, exceeding the minimum requirement of 4.00% [159]. - Total capital ratio for ACNB Corporation was 15.45% as of March 31, 2025, well above the minimum requirement of 8.00% [159]. - ACNB Corporation's Tier 1 Capital ratio was 13.86% as of March 31, 2025, exceeding the regulatory requirement of 6.00% [159]. Acquisition Impact - The provision for credit losses was $6.0 million for the three months ended March 31, 2025, compared to $223 thousand for the same period in 2024, reflecting the impact of the Acquisition [131]. - Noninterest expenses increased by $11.7 million to $29.3 million for the three months ended March 31, 2025, a 66.1% increase compared to the same period in 2024, largely due to merger-related costs from the Acquisition [134]. - The allowance for credit losses at the Acquisition date was $6.9 million, including $5.5 million for non-PCD loans [132]. - Nonaccrual loans increased by $2.2 million during the three months ended March 31, 2025, primarily due to the acquisition [150]. Liquidity Management - The Corporation's liquidity management includes monitoring projected cash inflows and outflows daily, ensuring sufficient funding sources for all material cash requirements [166]. - ACNB manages liquidity by monitoring projected cash inflows and outflows daily, ensuring sufficient funding sources for all material cash requirements [166]. - The parent company's main source of funding is the dividends received from its subsidiaries, which are subject to federal and state banking regulations [165]. - The Corporation had unfunded outstanding commitments to extend credit of $569.1 million and standby letters of credit of $25.2 million as of March 31, 2025 [167].

The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is ACNB (ACNB) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.ACNB is one of 858 companies in the Finance group. The Finance group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to ga ...

Market Overview - U.S. stocks experienced a rebound due to optimism regarding easing trade tensions between the U.S. and China, following weeks of turmoil that led major indexes into correction territory [1][6] - President Trump announced a 90-day halt on reciprocal tariffs, providing temporary relief to investors, although concerns about the economy's health persist [2][4] - Market volatility is expected to continue as trade talks are still in the early stages and uncertainty remains regarding future tariffs [3][7] Dividend-Paying Stocks - In light of ongoing market uncertainty, investing in dividend-paying stocks is recommended as they tend to provide steady income and stability [3][8] - Three notable companies that have declared dividend increases are: - **Univest Financial Corporation (UVSP)**: Announced a dividend of $0.22 per share with a yield of 2.95% and a payout ratio of 34% [10] - **ACNB Corporation (ACNB)**: Declared a dividend of $0.34 per share with a yield of 3.07% and a payout ratio of 34% [13] - **QUALCOMM Incorporated (QCOM)**: Announced a dividend of $0.89 per share with a yield of 2.42% and a payout ratio of 38% [15]

Core Insights - ACNB Corporation reported a net loss of $272 thousand, or $0.03 diluted loss per share, for Q1 2025, a significant decline from a net income of $6.8 million, or $0.80 diluted earnings per share, in Q1 2024 [1][11][27] - The financial results were adversely affected by a provision for credit losses of $4.2 million and merger-related expenses totaling $6.2 million due to the acquisition of Traditions Bancorp, Inc. [2][6] Financial Performance - Net interest income for Q1 2025 was $27.1 million, an increase of $6.5 million from Q1 2024, driven primarily by the acquisition [12][13] - The fully taxable equivalent (FTE) net interest margin improved to 4.07%, up 30 basis points from Q1 2024 [12][13] - Noninterest income rose to $7.2 million, an increase of $1.5 million from Q1 2024, attributed to gains from mortgage loans and investment in bank-owned life insurance [15] Acquisition Details - ACNB completed the acquisition of Traditions Bancorp on February 1, 2025, valued at approximately $83.8 million, significantly expanding its market presence [6][13] - Traditions contributed $877.7 million in assets, $648.5 million in loans, and $741.5 million in deposits at the acquisition date [6][13] - The acquisition resulted in goodwill of $20.3 million and increased the allowance for credit losses to $24.6 million as of March 31, 2025 [9][21] Asset Quality and Loans - Total loans outstanding reached $2.32 billion, an increase of $639.3 million from December 31, 2024, primarily due to the acquisition [17] - Non-performing loans increased to $10.0 million, or 0.43% of total loans, reflecting challenges in a specific commercial relationship and the impact of the acquisition [18] Deposits and Borrowings - Total deposits increased to $2.54 billion, up $747.5 million from December 31, 2024, with significant contributions from interest-bearing deposits [19] - Total borrowings were $299.5 million, reflecting a $28.4 million increase from December 31, 2024, primarily for balance sheet management [20] Stockholders' Equity - Total stockholders' equity rose to $386.9 million as of March 31, 2025, compared to $303.3 million at December 31, 2024, driven by equity issued in the acquisition [21] - Tangible book value per share was $28.23, down from $29.51 at December 31, 2024 [21][28]

Financial Performance - ACNB Corporation reported a net loss of $272 thousand, or $0.03 diluted loss per share, for Q1 2025, compared to a net income of $6.8 million, or $0.80 diluted earnings per share, in Q1 2024[2]. - The company reported a net loss of $272,000 for Q1 2025, compared to a net income of $6,768,000 in Q1 2024[33]. - Basic and diluted loss per share for Q1 2025 was $(0.03), down from earnings of $0.80 per share in Q1 2024[33]. - The return on average assets (annualized) was (0.04)% for the quarter, down from 1.08% in the previous quarter, highlighting a decline in asset efficiency[28]. - The diluted (loss) earnings per share was $(0.03) for the quarter, compared to $0.77 in the previous quarter, indicating a significant drop in earnings per share[28]. Acquisition Impact - The acquisition of Traditions Bancorp, effective February 1, 2025, added $877.7 million in assets, $648.5 million in loans, and $741.5 million in deposits[4]. - Noninterest income for Q1 2025 was $7.2 million, an increase of $1.5 million from Q1 2024, primarily due to the acquisition[15]. - The increase in total deposits was primarily driven by the Acquisition[20]. Asset and Loan Growth - Total loans outstanding reached $2.32 billion at March 31, 2025, an increase of $639.3 million from December 31, 2024[18]. - Total loans, net of unearned income, increased to $2,322,209 thousand, up from $1,682,910 thousand at December 31, 2024, marking a growth of 38.1%[30]. - Total assets increased to $3,270,041 thousand as of March 31, 2025, up from $2,394,830 thousand at December 31, 2024, representing a growth of 36.5%[28]. Deposits and Borrowings - Total deposits reached $2.54 billion as of March 31, 2025, an increase of $747.5 million from December 31, 2024, and $704.8 million from March 31, 2024[20]. - Interest-bearing deposits amounted to $1.98 billion, increasing by $636.3 million from December 31, 2024, and $641.7 million from March 31, 2024[20]. - Total borrowings were $299.5 million at March 31, 2025, up by $28.4 million compared to December 31, 2024, and $26.9 million compared to March 31, 2024[21]. Equity and Book Value - Total stockholders' equity increased to $386.9 million at March 31, 2025, compared to $303.3 million at December 31, 2024, and $279.9 million at March 31, 2024[22]. - Tangible book value per share was $28.23 at March 31, 2025, down from $29.51 at December 31, 2024, and up from $26.70 at March 31, 2024[22]. - Tangible common equity to tangible assets ratio decreased to 9.33% from 10.72%, indicating a reduction of 1.39 percentage points[38]. Interest Income and Expenses - Net interest income rose to $27,090 thousand for the quarter ended March 31, 2025, compared to $21,112 thousand for the previous quarter, an increase of 28.4%[28]. - Total Interest and Dividend Income for Q1 2025 was $36,290,000, a 39.5% increase from $25,974,000 in Q1 2024[33]. - Total Noninterest Expenses increased to $29,335,000, a significant rise of 66.5% from $17,662,000 in Q1 2024, primarily due to merger-related costs of $8,031,000[33]. Credit Losses and Non-Performing Loans - The allowance for credit losses was $24.6 million at March 31, 2025, an increase of $7.4 million compared to December 31, 2024[18]. - Non-performing loans were $10.0 million, or 0.43% of total loans, at March 31, 2025, compared to $6.8 million, or 0.40%, at December 31, 2024[19]. - Provision for credit losses was $5,968,000, a substantial increase from $223,000 in the same quarter last year[33]. Dividends and Stock Repurchase - The Board of Directors declared a regular quarterly cash dividend of $0.34 per share for Q2 2025, reflecting a 6.3% increase over the same quarter of 2024[9]. - ACNB repurchased 75,872 shares of common stock during Q1 2025[9]. - ACNB repurchased 75,872 shares of common stock during the three months ended March 31, 2025[22]. Efficiency and Cost Management - The efficiency ratio improved to 60.13% for the quarter ended March 31, 2025, compared to 63.83% in the previous quarter, indicating better cost management[28]. - Noninterest expense increased by $11.7 million in Q1 2025 compared to Q1 2024, largely due to merger-related expenses totaling $8.0 million[17].