ACNB (US:ACNB)2025-05-09 15:35Financial 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].