ACNB Corporation Reports Fourth Quarter and 2024 Financial Results

Financial Performance - ACNB Corporation reported net income of $6.6 million, or$ 0.77 diluted earnings per share, for Q4 2024, a 61.0% increase from $4.1 million, or$ 0.48 per share, in Q4 2023, but an 8.5% decrease from $7.2 million, or$ 0.84 per share, in Q3 2024 [1] - For the full year 2024, net income was $31.8 million, or$ 3.73 per diluted earnings per share, reflecting a slight increase of 0.5% compared to $31.6 million in 2023 [1] - The financial results were impacted by merger-related expenses of$ 885 thousand for Q4 2024 and $2.0 million for the full year due to the pending acquisition of Traditions Bancorp, Inc. [1] Net Interest Income and Margin - Net interest income for Q4 2024 was$ 21.1 million, a 0.8% increase from Q3 2024, driven by an increase in the FTE net interest margin to 3.81% [5] - For the full year 2024, net interest income totaled $83.6 million, a decrease of 5.3% from$ 88.3 million in 2023, primarily due to a decrease in the FTE net interest margin to 3.79% [6] Noninterest Income - Noninterest income for Q4 2024 was $5.8 million, a decrease of 15.1% from Q3 2024, mainly due to lower insurance commissions and wealth management income [7] - For the full year 2024, noninterest income, excluding net gains or losses on securities, increased by 4.1% to$ 24.7 million compared to 2023, driven by growth in wealth management and insurance commissions [8] Noninterest Expense - Noninterest expense for Q4 2024 was $18.4 million, a slight increase of 0.8% from Q3 2024, primarily due to higher equipment expenses related to the upcoming acquisition [9] - For the full year 2024, noninterest expense increased by 7.0% to$ 70.1 million, driven by merger-related expenses and higher salaries and employee benefits [10] Loans and Asset Quality - Total loans outstanding were $1.68 billion at December 31, 2024, a 3.4% increase from December 31, 2023, primarily due to growth in the commercial real estate portfolio [11] - Non-performing loans increased to$ 6.8 million, or 0.40% of total loans, at December 31, 2024, compared to 0.26% at the end of 2023, driven by a long-standing commercial relationship in the healthcare industry [13] Deposits and Borrowings - Total deposits were $1.79 billion at December 31, 2024, a slight increase of 0.1% from Q3 2024 but a decrease of 3.7% from December 31, 2023 [14] - Total borrowings decreased by 7.5% to$ 271.2 million at December 31, 2024, compared to Q3 2024, primarily due to a seasonal decrease in repurchase agreements [15] Stockholders' Equity - Total stockholders' equity was $303.3 million at December 31, 2024, a decrease from$ 306.8 million at September 30, 2024, but an increase from $277.5 million at December 31, 2023 [17] - Tangible book value per share was$ 29.51 at December 31, 2024, compared to $26.44 at the end of 2023 [17]