ACNB (US:ACNB)2025-11-06 21:41Financial 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].