ACNB (US:ACNB)2025-04-24 12:23Financial 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].