ACNB Corporation Reports 2025 First Quarter Financial Results

Core Insights - ACNB Corporation reported a net loss of $272 thousand, or $0.03 diluted loss per share, for Q1 2025, a significant decline from a net income of $6.8 million, or $0.80 diluted earnings per share, in Q1 2024 [1][11][27] - The financial results were adversely affected by a provision for credit losses of $4.2 million and merger-related expenses totaling $6.2 million due to the acquisition of Traditions Bancorp, Inc. [2][6] Financial Performance - Net interest income for Q1 2025 was $27.1 million, an increase of $6.5 million from Q1 2024, driven primarily by the acquisition [12][13] - The fully taxable equivalent (FTE) net interest margin improved to 4.07%, up 30 basis points from Q1 2024 [12][13] - Noninterest income rose to $7.2 million, an increase of $1.5 million from Q1 2024, attributed to gains from mortgage loans and investment in bank-owned life insurance [15] Acquisition Details - ACNB completed the acquisition of Traditions Bancorp on February 1, 2025, valued at approximately $83.8 million, significantly expanding its market presence [6][13] - Traditions contributed $877.7 million in assets, $648.5 million in loans, and $741.5 million in deposits at the acquisition date [6][13] - The acquisition resulted in goodwill of $20.3 million and increased the allowance for credit losses to $24.6 million as of March 31, 2025 [9][21] Asset Quality and Loans - Total loans outstanding reached $2.32 billion, an increase of $639.3 million from December 31, 2024, primarily due to the acquisition [17] - Non-performing loans increased to $10.0 million, or 0.43% of total loans, reflecting challenges in a specific commercial relationship and the impact of the acquisition [18] Deposits and Borrowings - Total deposits increased to $2.54 billion, up $747.5 million from December 31, 2024, with significant contributions from interest-bearing deposits [19] - Total borrowings were $299.5 million, reflecting a $28.4 million increase from December 31, 2024, primarily for balance sheet management [20] Stockholders' Equity - Total stockholders' equity rose to $386.9 million as of March 31, 2025, compared to $303.3 million at December 31, 2024, driven by equity issued in the acquisition [21] - Tangible book value per share was $28.23, down from $29.51 at December 31, 2024 [21][28]