ACNB (ACNB) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for Q3 2024 was $7.2 million, a decrease of$1.8 million or 20.3% compared to $9.0 million in Q3 2023[111] - Diluted earnings per share for Q3 2024 were$0.84, down 20.8% from $1.06 in Q3 2023[111] - Net income for the three months ended September 30, 2024 was$7.2 million, a decrease of $1.8 million, or 20.3$9.0 million for the same period in 2023[126] - Diluted earnings per share decreased by 20.8% to $0.84 for the three months ended September 30, 2024, down from$1.06 in the prior year[126] - Net income for the nine months ended September 30, 2024, was $25.3 million, a decrease of$2.3 million or 8.5% compared to the prior year[139] - Diluted earnings per share for the nine months ended September 30, 2024, were $2.96, reflecting an 8.4$3.23 in the same period of the prior year[139] Interest Income and Expenses - Net interest income for Q3 2024 was $20.9 million, a decrease of$803 thousand or 3.7% from $21.7 million in Q3 2023[112] - The net interest margin decreased to 3.77$20.9 million for the three months ended September 30, 2024, a decrease of $803 thousand, or 3.7$21.7 million in the same period of 2023[127] - The FTE net interest margin for the three months ended September 30, 2024 was 3.77%, a decrease of 24 basis points from 4.01% for the same period in the prior year[127] - Total interest expense increased by $3.8 million, or 153.1$3.0 million, or 12.3%, during the three months ended September 30, 2024, compared to the same period in 2023[131] - FTE interest income on total loans increased by $2.8 million, or 13.3$13.1 million, or 288.3%, during the nine months ended September 30, 2024, compared to the same period in the prior year[148] Noninterest Income and Expenses - Noninterest income for Q3 2024 was $6.8 million, an increase of$536 thousand or 8.5% from $6.3 million in Q3 2023[119] - Total noninterest income for the three months ended September 30, 2024, was$6.8 million, an increase of $536 thousand or 8.5$235 thousand or 24.7% to $1.2 million, driven by portfolio market appreciation and new business generation[135] - Noninterest expenses increased to$18.2 million, or 11.7%, for Q3 2024 compared to $16.3 million in Q3 2023[120] - Noninterest expenses totaled$18.2 million for the three months ended September 30, 2024, representing an 11.7% increase compared to the same period last year[138] - Salaries and employee benefits, the largest component of noninterest expenses, rose by $948 thousand or 9.4$11.0 million[140] - Total noninterest income was $18.9 million for the nine months ended September 30, 2024, an increase of$1.5 million, or 8.3%, compared to the same period in 2023[150] - Total noninterest expenses totaled $52.3 million during the nine months ended September 30, 2024, a 6.9$87.2 million or 5.5% for Q3 2024 compared to the same period in the prior year[115] - Non-performing loans were $6.6 million or 0.39$3.6 million or 0.22% at September 30, 2023[117] - The allowance for credit losses is based on management's evaluation of the loan portfolio and current risk characteristics[123] - Provisions for credit losses were $81 thousand for the three months ended September 30, 2024, compared to$250 thousand for the same period of the prior year[133] - The allowance for credit losses (ACL) was $17.2 million, or 1.03$20.0 million, or 1.23%, at December 31, 2023[164] - Total loans, net of unearned income, increased by $49.1 million, or 3.0$54.4 million or 3.9% for Q3 2024 compared to Q3 2023[116] - Total deposits decreased by $70.5 million, or 3.8$1.79 billion as of September 30, 2024, primarily due to an outflow of municipal deposits[167] - Time deposits increased by $24.6 million, or 10.6$19.1 million, or 33.6%, to $37.8 million as of September 30, 2024[170] - Long-term borrowings increased to$255.3 million at September 30, 2024, from $195.3 million at December 31, 2023[171] Capital and Equity - Total stockholders' equity rose to$306.8 million at September 30, 2024, compared to $277.5 million at December 31, 2023[172] - The dividend payout ratio for the first nine months of 2024 was 31.64$597 thousand, compared to 16,580 shares and $543 thousand in the same period of 2023[173] - As of September 30, 2024, ACNB Corporation repurchased 67,908 shares under its new stock repurchase program, which allows for the repurchase of up to 255,575 shares, approximately 3$483.6 million at September 30, 2024, compared to $517.2 million at December 31, 2023[159] - At September 30, 2024, the securities balance included a net unrealized loss on AFS securities of$36.8 million on an amortized cost of $454.9 million[159] - Securities sold under repurchase agreements totaled approximately$37.8 million as of September 30, 2024, compared to $26.9 million at December 31, 2023[181] Commitments and Liquidity - ACNB's banking subsidiary had a borrowing capacity of approximately$920.1 million from the FHLB as of September 30, 2024, with $684.0 million available[179] - The liquidity management strategy includes monitoring projected cash inflows and outflows daily, ensuring sufficient funding sources for both short- and long-term cash requirements[183] - As of September 30, 2024, ACNB Corporation had unfunded outstanding commitments to extend credit of$363.6 million and outstanding standby letters of credit of $14.4 million[184]