false000071557900007155792023-10-272023-10-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
______________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
______________

Date of Report (Date of earliest event reported): October 27, 2023

ACNB Corporation
(Exact name of Registrant as specified in its charter)


Pennsylvania1-3501523-2233457
(State or other
jurisdiction of
incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
16 Lincoln Square, Gettysburg, PA
 17325
(Address of principal executive offices) (Zip Code)
717.334.3161
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title Of Each ClassTrading Symbol(s)Name Of Each Exchange On Which Registered
Common Stock, $2.50 par value per shareACNBThe NASDAQ Stock Market, LLC



CURRENT REPORT ON FORM 8-K

ITEM 2.02    Results of Operations and Financial Condition

ACNB Corporation released financial results for the three and nine months ended September 30, 2023, as more fully described in the attached press release dated October 27, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information furnished under this Item 2.02 of this Current Report on Form 8-K shall not be deemed to be filed for purposes of the Securities Exchange Act of 1934.

ITEM 9.01    Financial Statements and Exhibits

(d) Exhibits.

Exhibit Number    Description


104    Cover Page Interactive Data File (embedded within the Inline XBRL document).




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.


  
ACNB CORPORATION (Registrant)
   
Dated:October 27, 2023 /s/ Kevin J. Hayes
  Kevin J. Hayes
  Senior Vice President/
  General Counsel, Secretary & Chief Governance Officer

Exhibit 99.1
acnb_corpxverticalxlogoxcm.jpg
PRESS RELEASE

FOR IMMEDIATE RELEASE
Contact:
Jason H. Weber
EVP/Treasurer &
Chief Financial Officer
717.339.5090
jweber@acnb.com

ACNB CORPORATION REPORTS
2023 THIRD QUARTER FINANCIAL RESULTS


GETTYSBURG, PA, October 27, 2023 --- ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced financial results for the quarter ended September 30, 2023 with net income of $9.0 million, a decrease of $1.3 million, or 12.4%, compared to net income of $10.3 million for the three months ended September 30, 2022. For the three months ended September 30, 2023 and 2022, basic and diluted earnings per share were $1.06 and $1.20, respectively, which is a decrease of $0.14 per share, or 11.7%. The current quarter net income of $9.0 million decreased $480 thousand, or 5.0%, compared to net income of $9.5 million for the quarter ended June 30, 2023. The current quarter basic and diluted earnings per share decreased $0.06 per share, or 5.4%, compared to the prior quarter.

2023 Third Quarter Highlights

•Return on average assets was 1.52% and return on average equity was 13.84%.

•Fully taxable equivalent ("FTE") net interest margin was 4.01% compared to 4.11% for the prior quarter and 3.60% for the comparable quarter last year.

•Efficiency ratio1 was 56.97% compared to 55.52% for the prior quarter and 52.45% from the comparable quarter last year.

•Total loans outstanding were $1.62 billion at September 30, 2023, an increase of $42.1 million, or 2.7%, from June 30, 2023 and an increase of $88.8 million, or 5.8% from September 30, 2022.

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Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 2 of 14

•Total non-performing loans to loans held-for-investment was 0.22% compared to 0.23% for the prior quarter and 0.26% for the comparable quarter of last year. Net charge-offs to average loans (annualized) was 0.03% compared to 0.02% for the prior quarter and 0.26% for the comparable quarter last year.

•The loan to deposit ratio was 82.8% for the most recent quarter. The ratio of uninsured and non-collateralized deposits to total deposits was approximately 17.4% at ACNB Bank for the most recent quarter.

•Tangible common equity to tangible assets ratio1 of 8.65% for the most recent quarter compared to 8.75% for the prior quarter and 6.83% for the comparable quarter last year. The net unrealized loss on the available for sale securities portfolio was $75.2 million at September 30, 2023 compared to a net unrealized loss of $66.1 million at June 30, 2023 and a net unrealized loss of $68.8 million at September 30, 2022.

1 - Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.

“We are pleased to announce strong results for the third quarter of 2023 which reflect our continued focus on profitability.” said ACNB Corporation President and Chief Executive Officer James P. Helt. “Our team is delivering on its commitment to expertly serve the credit needs of our consumer and business customers while adhering to disciplined underwriting criteria. This commitment combined with a slowdown in loan prepayments due to the continued higher interest rate environment contributed to the positive loan growth this quarter. We also saw meaningful year-over-year increases in non-interest income as a result of other activities, including commissions from insurance sales and wealth management services. Asset quality remains a fundamental strength of the Corporation, and our results demonstrate that the Corporation is highly profitable in many key metrics, particularly return on average assets and return on average equity.”
Mr. Helt continued, “These solid operating results have enabled ACNB Corporation to generate sufficient capital to simultaneously invest back into the systems and resources that will allow us to continue to serve our customers in the future, as well as return capital to our shareholders in the form of stock repurchases and by increasing regular quarterly cash dividends by 7.1% to $0.30 per share of common stock, as was recently announced. We remain focused on our Vision to be the independent financial services provider of choice in the communities served by building relationships and finding solutions. As we look ahead to the final quarter of 2023, we are cautiously optimistic that our strong capital position, ample liquidity, and comprehensive menu of financial products and services will enable us to deliver on our commitment to success for the benefit of our many stakeholders.”

ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 3 of 14

Net Interest Income and Margin
    Net interest income for the three months ended September 30, 2023 totaled $21.7 million, a decrease of $775 thousand, or 3.4%, over the comparable quarter last year. The FTE net interest margin was 4.01%, an increase of 41 basis points from 3.60% for the comparable quarter last year. Paycheck Protection Program (“PPP”) fees and purchase accounting accretion for the three months ended September 30, 2023 totaled $208 thousand compared to $853 thousand for the comparable quarter last year. There were no PPP fees for the three months ended September 30, 2023 compared to $24 thousand for the comparable quarter last year. The decline in net interest income was driven primarily by a decrease in earning assets, an increase in the cost of funds, and a decrease in purchase accounting accretion.
Compared to the prior quarter, net interest income decreased $245 thousand, or 1.1%, driven primarily by an increase in the cost of funds and, to a lesser extent, a decrease in purchase accounting accretion. The FTE net interest margin decreased 10 basis points as funding cost increases out-paced the increases in the yields on interest-earning assets. Purchase accounting accretion for the three months ended September 30, 2023 totaled $208 thousand compared to $250 thousand for the prior quarter.
The average rate paid on interest-bearing deposits was 0.26% for the three months ended September 30, 2023, an increase of 13 basis points from the prior quarter and an increase of 12 basis points from the comparable quarter last year. The average rate paid on total borrowings was 3.83% for the three months ended September 30, 2023, an increase of 68 basis points from the prior quarter and an increase of 218 basis points from the comparable quarter last year. The average yield on interest-earning assets was 4.46% for the three months ended September 30, 2023, an increase of 13 basis points from the prior quarter and an increase of 72 basis points from the comparable quarter last year.
Noninterest Income
Noninterest income for the three months ended September 30, 2023 was $6.3 million, an increase of $448 thousand, or 7.7%, from the comparable quarter last year. The increase was driven primarily by an

ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 4 of 14

increase of $200 thousand in commissions from insurance sales due to organic growth, an increase of $130 thousand in income from fiduciary, investment management and brokerage activities, due to strong market returns and new business generation, and an increase in earnings on investment in bank-owned life insurance of $111 thousand due to the additional purchase of bank-owned life insurance in the third quarter of 2022. These increases were partially offset by lower service charges on deposit accounts of $82 thousand and lower income from mortgage loans held for sale of $42 thousand.
Compared to the prior quarter, noninterest income increased $103 thousand, or 1.7%. The second quarter of 2023 included a $323 thousand gain from the sale of three previously closed community banking offices and $553 thousand of contingent commissions earned in 2022, partially offset by losses of $546 thousand from the sale of securities.
Noninterest Expense
Noninterest expense for the three months ended September 30, 2023 was $16.3 million, an increase of $1.0 million, or 6.6%, from the comparable quarter last year. The increase was driven primarily by increases in salaries and employee benefits, other operating, FDIC and regulatory and marketing and corporate relations expenses. Salaries and employee benefits expense was $10.1 million for the three months ended September 30, 2023 compared to $9.3 million for the comparable quarter last year. The increase in salaries and employee benefits expense was driven primarily by a general increase in base wages and commissions and an increase to incentive compensation. Other operating expense was $1.7 million for the three months ended September 30, 2023 compared to $1.5 million for the comparable quarter last year. The increase in other operating expenses was driven primarily by an increase in director-related fees of $97 thousand. FDIC and regulatory expense increased $125 thousand driven primarily by the timing of FDIC assessment recognition. Marketing and corporate relations expense was $159 thousand for the three months ended September 30, 2023 compared to $57 thousand for the comparable quarter last year. The increase was driven primarily by rebranding expenses of ACNB Bank’s Maryland banking locations.

ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 5 of 14

Compared to the prior quarter, noninterest expense increased $55 thousand, or 0.34%, driven primarily by an increase in salary and employee benefits and FDIC and regulatory expenses partially offset by a decrease in other operating, equipment and net occupancy expenses. Salaries and employee benefits expense was $10.1 million for the three months ended September 30, 2023 compared to $9.8 million for the prior quarter. The increase in salaries and employee benefits expense was driven primarily by a general increase in base wages and commissions and an increase to incentive compensation. FDIC and regulatory expense increased $93 thousand driven primarily by the timing of FDIC assessment recognition. Other operating expense was $1.7 million for the three months ended September 30, 2023 compared to $1.9 million for the prior quarter. The decrease in other operating expense was driven primarily by a loss of $142 thousand recognized in the prior quarter as a result of writing off an investment in a title company. Equipment and net occupancy expenses were down primarily due to the timing of core processing costs and a decrease in maintenance and building repair expenses.
Loans and Asset Quality
Total loans outstanding were $1.62 billion at September 30, 2023, an increase of $42.1 million, or 2.7%, from June 30, 2023 and an increase of $88.8 million, or 5.8%, from September 30, 2022. The increase in both periods was driven mainly by growth in the commercial loan portfolio in our core markets.
Asset quality metrics continue to be stable. The provision for credit losses was $250 thousand and the provision for unfunded commitments was a reversal of $171 thousand for the three months ended September 30, 2023 compared to a reversal of provision for credit losses of $273 thousand and a provision for unfunded commitments of $121 thousand for the prior quarter. Non-performing loans were $3.6 million, or 0.22%, of total loans at September 30, 2023 compared to $3.7 million, or 0.23%, of total loans at June 30, 2023 and $3.9 million, or 0.26%, of total loans at September 30, 2022. Annualized net charge-offs for the three months ended September 30, 2023 were 0.03% of total average loans compared to 0.02% for the prior quarter and 0.26% for the comparable quarter last year.

ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 6 of 14

Deposits and Borrowings
Total deposits were $2.0 billion at September 30, 2023. Deposits decreased by $12.4 million, or 0.6%, since June 30, 2023 and decreased by $384.9 million, or 16.5%, from September 30, 2022. Given ACNB’s funding level, Management continued to restrain deposit rates despite an increase in market interest rates and an increase in rates by competitors. As a result, total deposits declined during both periods as customers continued to seek higher yielding alternative deposit and investment products.
Total interest-bearing deposits were $1.4 billion at September 30, 2023. Interest-bearing deposits decreased by $8.2 million, or 0.6%, from June 30, 2023 and by $361.0 million, or 20.7%, from September 30, 2022. Brokered deposits were $30.0 million at September 30, 2023 compared to none at both June 30, 2023 and September 30, 2022. Total non-interest bearing deposits were $565.5 million at September 30, 2023. Non-interest bearing deposits decreased by $4.2 million, or 0.7%, from June 30, 2023 and decreased by $23.9 million, or 4.1%, from September 30, 2022. Compared to the prior quarter end, total borrowings increased $20.7 million at September 30, 2023 primarily to fund loan growth.
Stockholders’ Equity, Dividends and Share Repurchases
Total stockholders’ equity was $255.6 million at September 30, 2023 compared to $257.1 million at June 30, 2023 and $232.4 million at September 30, 2022. Tangible book value1 per share was $23.80, $23.83 and $20.86 at September 30, 2023, June 30, 2023 and September 30, 2022, respectively.
On October 19, 2023, the Board of Directors approved and declared a regular quarterly cash dividend of $0.30 per share of ACNB Corporation common stock payable on December 15, 2023, to shareholders of record as of December 1, 2023. This per share amount reflects a 7.1% increase, or $0.02, over the prior quarter’s cash dividend of $0.28 per share of common stock.
In addition, ACNB repurchased 46,378 shares of ACNB common stock during the three months ended September 30, 2023 at a cost of $1.5 million compared to no shares of ACNB common stock during the prior

ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 7 of 14

quarter and 109,931 shares of ACNB common stock during the comparable quarter last year at a cost of $3.8 million.
About ACNB Corporation
ACNB Corporation, headquartered in Gettysburg, PA, is the $2.4 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, and ACNB Insurance Services, Inc., Westminster, MD. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 26 community banking offices and three loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 44 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, MD, and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.
# # #
SAFE HARBOR AND FORWARD-LOOKING STATEMENTS - Should there be a material subsequent event prior to the filing of the Quarterly Report on Form 10-Q with the Securities and Exchange Commission, the financial information reported in this press release is subject to change to reflect the subsequent event. In addition to historical information, this press release may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of Management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Corporation’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as national, regional and local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. Such risks, uncertainties, and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: short-term and long-term effects of inflation and rising costs on the Corporation, customers and economy; the continuing banking instability caused by the recent failures and continuing financial uncertainty of various banks which may adversely impact the Corporation and its securities and loan values, deposit stability, capital adequacy, financial condition, operations, liquidity, and results of operations; effects of governmental and fiscal policies, as well as legislative and regulatory changes; effects of new laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which the Corporation and its subsidiaries must comply; impacts of the capital and liquidity requirements of the Basel III standards; effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future market conditions; future actions or inactions of the United States government, including the effects of short-term and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the federal government; effects of economic conditions particularly with regard to the negative impact of any pandemic, epidemic or health-related crisis and the responses thereto on the operations of the Corporation and current customers, specifically the effect of the economy on loan customers’ ability to repay loans; effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; inflation, securities market and monetary fluctuations; risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities, and interest rate protection agreements, as well as interest rate

ACNB Corporation
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October 27, 2023
Page 8 of 14

risks; difficulties in acquisitions and integrating and operating acquired business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; effects of technology changes; effects of general economic conditions and more specifically in the Corporation’s market areas; failure of assumptions underlying the establishment of reserves for credit losses and estimations of values of collateral and various financial assets and liabilities; acts of war or terrorism or geopolitical instability; disruption of credit and equity markets; ability to manage current levels of impaired assets; loss of certain key officers; ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s intellectual property rights; continued relationships with major customers; and, potential impacts to the Corporation from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses. We caution readers not to place undue reliance on these forward-looking statements. They only reflect Management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Please also carefully review any Current Reports on Form 8-K filed by the Corporation with the SEC.

ACNB #2023-21
October 27, 2023


ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 9 of 14

ACNB Corporation Financial Highlights
Selected Financial Data by Respective Quarter End
(Unaudited)
Dollars in thousands, except per share dataSeptember 30, 2023June 30, 2023March 31, 2023December 31, 2022September 30, 2022
BALANCE SHEET DATA
Assets$2,388,522 $2,378,151 $2,410,933 $2,525,507 $2,654,153 
Securities501,063 518,093 568,232 620,250 571,796 
Loans, total1,615,966 1,573,817 1,531,626 1,538,610 1,527,128 
Allowance for credit losses19,264 19,148 19,485 17,861 17,952 
Deposits1,951,359 1,963,754 2,055,822 2,198,975 2,336,213 
Allowance for unfunded commitments1,962 2,132 2,011 92 92 
Borrowings153,388 132,703 76,294 62,954 65,691 
Stockholders’ equity255,638 257,069 255,841 245,042 232,370 
INCOME STATEMENT DATA
Interest income$24,234 $23,213 $23,909 $24,894 $23,382 
Interest expense2,489 1,223 817 846 862 
Net interest income21,745 21,990 23,092 24,048 22,520 
Provision for (reversal of ) credit losses250 (273)97 — — 
(Reversal of) provision for unfunded commitments(171)121 276 — — 
Net interest income after provisions for credit losses and unfunded commitments21,666 22,142 22,719 24,048 22,520 
Other income6,297 6,194 4,984 5,423 5,849 
Other expenses16,336 16,281 16,282 16,673 15,320 
Income before income taxes11,627 12,055 11,421 12,798 13,049 
Provision for income taxes2,583 2,531 2,398 2,599 2,725 
Net income$9,044 $9,524 $9,023 $10,199 $10,324 
PROFITABILITY RATIOS
Loans held-for-investment to deposits82.81 %80.14 %74.50 %69.97 %65.37 %
Return on average assets (annualized)1.52 %1.62 %1.50 %1.56 %1.51 %
Return on average equity (annualized)13.84 %14.74 %14.58 %17.10 %17.06 %
Efficiency ratio156.97 %55.52 %56.36 %55.66 %52.45 %
FTE Net interest margin4.01 %4.11 %4.22 %4.03 %3.60 %
Yield on average earning assets4.46 %4.33 %4.37 %4.17 %3.74 %
Yield on securities2.24 %2.24 %2.46 %2.30 %2.05 %
Yield on loans5.16 %5.05 %5.12 %4.97 %4.75 %
Cost of funds0.47 %0.23 %0.15 %0.14 %0.14 %
PER SHARE DATA
Diluted earnings per share$1.06 $1.12 $1.06 $1.20 $1.20 
Cash dividends paid per share0.28 0.28 0.28 0.28 0.26 
Tangible book value per share1
23.80 23.83 23.66 22.41 20.86 
Tangible book value per share (ex-AOCI)1
31.43 30.64 29.76 29.23 28.23 
CAPITAL RATIOS2
Tier 1 leverage ratio11.97 %11.79 %11.09 %9.91 %9.33 %
Common equity tier 1 ratio15.30 %15.38 %15.21 %15.00 %14.74 %
Tier 1 risk based capital ratio15.59 %15.72 %15.56 %15.36 %15.10 %
Total risk based capital ratio17.49 %17.67 %17.56 %17.32 %17.11 %
CREDIT QUALITY
Net charge-offs to average loans outstanding (annualized)0.03 %0.02 %0.02 %0.02 %0.26 %
Total non-performing loans to loans held-for-investment30.22 %0.23 %0.25 %0.25 %0.26 %
Total non-performing assets to total assets40.17 %0.17 %0.18 %0.17 %0.16 %
Allowance for credit losses to loans held-for-investment1.19 %1.22 %1.27 %1.16 %1.18 %




1 Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.
2 Regulatory capital ratios as of September 30, 2023 are preliminary.
3 Non-performing Loans consists of loans on nonaccrual status and loans greater than ninety days past due and still accruing interest.
4 Non-performing Assets consists of Non-performing Loans and Other Real Estate Owned (OREO).

ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 10 of 14

Consolidated Balance Sheets
(Unaudited)
Dollars in thousands, except per share dataSeptember 30, 2023June 30, 2023March 31, 2023
ASSETS
Cash and due from banks$22,786 $24,898 $24,833 
Interest bearing deposits with banks41,255 59,145 89,233 
Total Cash and Cash Equivalents64,041 84,043 114,066 
Equity securities with readily determinable fair values888 915 1,328 
Debt securities available for sale435,559 452,252 501,944 
Securities held to maturity, fair value $53,843; $58,133; $59,998
64,616 64,926 64,960 
Loans held for sale— — 167 
Loans, net of allowance for credit losses $19,264; $19,148; $19,485
1,596,702 1,554,669 1,512,141 
Assets held for sale— 1,418 3,393 
Premises and equipment, net25,740 26,145 26,588 
Right of use assets2,784 2,952 2,994 
Restricted investment in bank stocks5,477 4,877 2,552 
Investment in bank-owned life insurance79,391 78,919 78,435 
Investments in low-income housing partnerships1,034 1,066 1,097 
Goodwill44,185 44,185 44,185 
Intangible assets, net9,434 9,612 9,972 
Foreclosed assets held for resale467 467 474 
Other assets58,204 51,705 46,637 
Total Assets$2,388,522 $2,378,151 $2,410,933 
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing transaction accounts$565,530 $569,729 $594,355 
Interest bearing transactions accounts1,385,829 1,394,025 1,461,467 
Total Deposits1,951,359 1,963,754 2,055,822 
Short-term borrowings33,106 51,703 30,294 
Long-term borrowings120,282 81,000 46,000 
Lease liabilities2,784 2,952 2,994 
Allowance for unfunded commitments1,962 2,132 2,011 
Other liabilities23,391 19,541 17,971 
Total Liabilities2,132,884 2,121,082 2,155,092 
STOCKHOLDERS’ EQUITY
Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding— — — 
Common stock, $2.50 par value; 20,000,000 shares authorized; 8,892,374, 8,888,732, and 8,883,206 shares issued; 8,521,546, 8,564,282, and 8,523,256 shares outstanding
22,224 22,212 22,198 
Treasury stock, at cost; 370,828, 324,450, and 324,450 shares
(10,502)(8,956)(8,956)
Additional paid-in capital96,744 96,586 96,415 
Retained earnings211,939 205,279 198,144 
Accumulated other comprehensive loss(64,767)(58,052)(51,960)
Total Stockholders’ Equity255,638 257,069 255,841 
Total Liabilities and Stockholders’ Equity$2,388,522 $2,378,151 $2,410,933 






ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 11 of 14

Consolidated Income Statements
(Unaudited)
 Three months ended September 30,Nine Months Ended September 30,
Dollars in thousands, except per share data2023202220232022
INTEREST AND DIVIDEND INCOME  
Loans, including fees
Taxable$20,285 $17,789 $58,130 $50,078 
Tax-exempt361 424 1,069 995 
Securities:
Taxable2,477 2,830 8,451 7,102 
Tax-exempt284 189 883 618 
Dividends104 20 196 79 
Other723 2,130 2,627 3,283 
Total Interest Income24,234 23,382 71,356 62,155 
INTEREST EXPENSE  
Deposits928 605 1,887 1,989 
Short-term borrowings439 23 564 60 
Long-term borrowings1,122 234 2,078 729 
Total Interest Expense2,489 862 4,529 2,778 
Net Interest Income21,745 22,520 66,827 59,377 
Provision for Credit Losses250 — 74 — 
(Reversal of) Provision for Unfunded Commitments(171)— 226 — 
Net Interest Income after Provisions for Credit Losses and Unfunded Commitments21,666 22,520 66,527 59,377 
OTHER INCOME
Commissions from insurance sales2,629 2,429 7,371 6,437 
Service charges on deposit accounts1,000 1,082 2,951 3,046 
Income from fiduciary, investment management and brokerage activities953 823 2,772 2,449 
Gain from mortgage loans held for sale— 42 31 468 
Earnings on investment in bank-owned life insurance473 362 1,399 1,052 
Net losses on sales or calls of securities— — (739)— 
Net losses on equity securities(27)(88)(22)(345)
Gain on assets held for sale14 — 337 — 
Service charges on ATM and debit card transactions845 837 2,502 2,455 
Other410 362 873 822 
Total Other Income6,297 5,849 17,475 16,384 
OTHER EXPENSES  
Salaries and employee benefits10,069 9,320 30,335 26,193 
Net occupancy942 1,000 2,981 3,098 
Equipment1,554 1,521 4,784 4,566 
Other tax323 411 965 1,229 
Professional services617 589 1,600 1,328 
Supplies and postage229 254 633 630 
Marketing and corporate relations159 57 472 227 
FDIC and regulatory388 263 932 798 
Intangible assets amortization352 395 1,072 1,093 
Other operating1,703 1,510 5,125 4,446 
Total Other Expenses16,336 15,320 48,899 43,608 
Income before Income Taxes11,627 13,049 35,103 32,153 
PROVISION FOR INCOME TAXES2,583 2,725 7,512 6,600 
Net Income$9,044 $10,324 $27,591 $25,553 
PER SHARE DATA  
Basic earnings $1.06 $1.20 $3.24 $2.95 
Diluted earnings$1.06 $1.20 $3.23 $2.95 

ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 12 of 14

Average Balances, Income and Expenses, Yields and Rates
 Three months ended September 30, 2023Three months ended September 30, 2022Nine months ended
September 30, 2023		Nine months ended
September 30, 2022
Dollars in thousandsAverage
Balance		Interest5Yield/
Rate		Average
Balance
Interest5
Yield/
Rate		Average
Balance
Interest5
Yield/
Rate		Average
Balance
Interest5
Yield/
Rate
ASSETS      
Interest bearing deposits with banks$53,324 $723 5.38 %$368,265 $2,130 2.29 %$71,645 $2,627 4.90 %$481,219 $3,283 0.91 %
Investments (Tax-exempt)55,027 359 2.59 %27,519 239 3.45 %55,307 1,118 2.70 %29,350 782 3.56 %
Investments (Taxable)466,402 2,581 2.20 %571,282 2,850 1.98 %507,061 8,647 2.28 %535,084 7,181 1.79 %
Total Investments521,429 2,940 2.24 %598,801 3,089 2.05 %562,368 9,765 2.32 %564,434 7,963 1.89 %
Loans (Tax-exempt)73,995 457 2.45 %80,604 424 2.09 %75,657 1,353 2.39 %78,180 1,259 2.15 %
Loans (Taxable)1,520,134 20,285 5.29 %1,440,646 17,789 4.90 %1,479,690 58,130 5.25 %1,417,589 50,078 4.72 %
Total Loans1,594,129 20,742 5.16 %1,521,250 18,213 4.75 %1,555,347 59,483 5.11 %1,495,769 51,337 4.59 %
Total Earning Assets2,168,882 24,405 4.46 %2,488,316 23,432 3.74 %2,189,360 71,875 4.39 %2,541,422 62,583 3.29 %
    
Total Assets$2,365,365   $2,709,482   $2,387,403 $2,716,032 
LIABILITIES      
Interest bearing demand deposits$571,314 $640,903 $580,180 $636,348 
Money markets245,899 342,002 276,154 337,892 
Savings deposits366,398 417,290 385,753 410,363 
Time deposits212,159 360,114 234,951 388,509 
Total Interest Bearing Deposits1,395,770 928 0.26 %1,760,309 605 0.14 %1,477,038 1,887 0.17 %1,773,112 1,989 0.15 %
Short-term borrowings66,942 439 2.60 %38,017 23 0.24 %47,852 564 1.58 %37,365 60 0.21 %
Long-term borrowings94,554 1,122 4.71 %23,875 234 3.89 %58,333 2,078 4.76 %23,874 729 4.08 %
Total borrowings161,496 1,561 3.83 %61,892 257 1.65 %106,185 2,642 3.33 %61,239 789 1.72 %
Total Interest Bearing Liabilities1,557,266 2,489 0.63 %1,822,201 862 0.19 %1,583,223 4,529 0.38 %1,834,351 2,778 0.20 %
Non-interest bearing demand deposits541,995  597,884  550,206 616,224 
Cost of Funds 0.47 % 0.14 %0.28 %0.15 %
FTE Net Interest Margin  4.01 %  3.60 %4.11 %3.15 %
Stockholders’ Equity259,284 240,026 256,526 253,207 
5 Income on interest-earning assets has been computed on a fully taxable equivalent basis using the 21% federal income tax statutory rate.

ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 13 of 14




 Three months ended September 30, 2023Three months ended
June 30, 2023		Three months ended
March 31, 2023		Three months ended December 31, 2022Three months ended September 30, 2022
Dollars in thousandsAverage
Balance		Interest6Yield/
Rate		Average
Balance
Interest6
Yield/
Rate		Average
Balance
Interest6
Yield/
Rate		Average
Balance
Interest6
Yield/
Rate		Average
Balance
Interest6
Yield/
Rate
ASSETS      
Interest bearing deposits with banks$53,324 $723 5.38 %$71,040 $890 5.03 %$90,987 $1,014 4.52 %$268,911 $2,473 3.65 %$368,265 $2,130 2.29 %
Investments (Tax-exempt)55,027 359 2.59 %55,588 361 2.60 %55,589 397 2.90 %42,987 666 6.15 %27,519 239 3.45 %
Investments (Taxable)466,402 2,581 2.20 %498,401 2,739 2.20 %557,377 3,327 2.42 %542,137 2,722 1.99 %571,282 2,850 1.98 %
Total Investments521,429 2,940 2.24 %553,989 3,100 2.24 %612,966 3,724 2.46 %585,124 3,388 2.30 %598,801 3,089 2.05 %
Loans (Tax-exempt)73,995 457 2.45 %75,670 446 2.36 %77,341 451 2.36 %78,274 446 2.26 %80,604 424 2.09 %
Loans (Taxable)1,520,134 20,285 5.29 %1,463,967 18,946 5.19 %1,454,934 18,898 5.27 %1,459,830 18,821 5.11 %1,440,646 17,789 4.90 %
Total Loans1,594,129 20,742 5.16 %1,539,637 19,392 5.05 %1,532,275 19,349 5.12 %1,538,104 19,267 4.97 %1,521,250 18,213 4.75 %
Total Earning Assets2,168,882 24,405 4.46 %2,164,666 23,382 4.33 %2,236,228 24,087 4.37 %2,392,139 25,128 4.17 %2,488,316 23,432 3.74 %
    
Total Assets$2,365,365   $2,357,626   $2,439,219 $2,598,000 $2,709,482 
LIABILITIES      
Interest bearing demand deposits$571,314 $577,480 $591,972 $653,369 $640,903 
Money markets245,899 261,560 298,584 328,808 342,002 
Savings deposits366,398 387,847 403,419 408,285 417,290 
Time deposits212,159 224,608 268,708 318,115 360,114 
Total Interest Bearing Deposits1,395,770 928 0.26 %1,451,495 486 0.13 %1,562,683 473 0.12 %1,708,577 572 0.13 %1,760,309 605 0.14 %
Short-term borrowings66,942 439 2.60 %34,080 108 1.27 %35,596 17 0.19 %41,257 17 0.16 %38,017 23 0.24 %
Long-term borrowings94,554 1,122 4.71 %59,901 629 4.21 %29,211 327 4.54 %22,350 257 4.56 %23,875 234 3.89 %
Total borrowings161,496 1,561 3.83 %93,981 737 3.15 %64,807 344 2.15 %63,607 274 1.71 %61,892 257 1.65 %
Total Interest Bearing Liabilities1,557,266 2,489 0.63 %1,545,476 1,223 0.32 %1,627,490 817 0.20 %1,772,184 846 0.19 %1,822,201 862 0.19 %
Non-interest bearing demand deposits541,995  550,581   557,546 586,092 597,884 
Cost of Funds 0.47 % 0.23 %0.15 %0.14 %0.14 %
FTE Net Interest Margin  4.01 %  4.11 %4.22 %4.03 %3.60 %
Stockholders’ Equity259,284 259,239 251,054 236,674 240,026 
6 Income on interest-earning assets has been computed on a fully taxable equivalent basis using the 21% federal income tax statutory rate.

ACNB Corporation
Press Release/2023 Third Quarter Financial Results
October 27, 2023
Page 14 of 14


Non-GAAP Reconciliation

Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.
Three Months Ended
Dollars in thousands, except per share data
September 30, 2023June 30, 2023March 31, 2023December 31, 2022September 30, 2022
Tangible book value per share
Stockholders’ equity$255,638 $257,069 $255,841 $245,042 $232,370 
Less: Goodwill and intangible assets(53,619)(53,797)(54,157)(54,517)(54,916)
Tangible common stockholders’ equity (numerator)$202,019 $203,272 $201,684 $190,525 $177,454 
Shares outstanding, less unvested shares, end of period (denominator)8,488,446 8,528,782 8,523,256 8,501,752 8,505,843 
Tangible book value per share$23.80 $23.83 $23.66 $22.41 $20.86 
Tangible book value per share (ex-AOCI)
Tangible common stockholders’ equity$202,019 $203,272 $201,684 $190,525 $177,454 
Less: AOCI(64,767)(58,052)(51,960)(58,012)(62,690)
Tangible equity (ex-AOCI)$266,786 $261,324 $253,644 $248,537 $240,144 
Tangible book value per share (ex-AOCI)$31.43 $30.64 $29.76 $29.23 $28.23 
Tangible common equity to tangible assets (TCE/TA Ratio)
Tangible common stockholders’ equity (numerator)$202,019 $203,272 $201,684 $190,525 $177,454 
Total assets$2,388,522 $2,378,151 $2,410,933 $2,525,507 $2,654,153 
Less: Goodwill and intangible assets(53,619)(53,797)(54,157)(54,517)(54,916)
Total tangible assets (denominator)$2,334,903 $2,324,354 $2,356,776 $2,470,990 $2,599,237 
Tangible common equity to tangible assets8.65 %8.75 %8.56 %7.71 %6.83 %
Efficiency Ratio
Non-interest expense$16,336 $16,281 $16,282 $16,673 $15,320 
Less: Intangible amortization(352)(360)(360)(399)(395)
Less: Loss on MD Title Investment$— $(142)$— $— $— 
Non-interest expense (numerator)$15,984 $15,779 $15,922 $16,274 $14,925 
Net interest income$21,745 $21,990 $23,092 $24,048 $22,520 
Plus: Total non-interest income6,297 6,194 4,984 5,423 5,849 
Less: Net gains (losses) on sales or calls of securities— (546)(193)(234)— 
Less: Net (losses) gains on equity securities(27)(15)20 46 (88)
Less: Gain on assets held for sale14 323 — — — 
Less: Net gains on sale of low income housing partnership— — — 421 — 
Total revenue (denominator)$28,055 $28,422 $28,249 $29,238 $28,457 
Efficiency ratio56.97 %55.52 %56.36 %55.66 %52.45 %

v3.23.3
Cover
Oct. 27, 2023
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 27, 2023
Entity Registrant Name ACNB Corporation
Entity Incorporation, State or Country Code PA
Entity File Number 1-35015
Entity Tax Identification Number 23-2233457
Entity Address, Address Line One 16 Lincoln Square
Entity Address, City or Town Gettysburg
Entity Address, State or Province PA
Entity Address, Postal Zip Code 17325
City Area Code 717
Local Phone Number 334.3161
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, $2.50 par value per share
Trading Symbol ACNB
Security Exchange Name NASDAQ
Amendment Flag false
Entity Central Index Key 0000715579
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