ACNB Corporation Reports Record 2026 Third Quarter Financial Results

来源: Nasdaq GlobeNewswire / 22 Oct 2026 09:00:01 America/New_York

GETTYSBURG, Pa., Oct. 22, 2026 (GLOBE NEWSWIRE) -- ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced net income of $15.7 million, or $1.55 diluted earnings per share, for the three months ended September 30, 2026 compared to net income of $15.2 million, or $1.49 diluted earnings per share, for the three months ended June 30, 2026 and compared to net income of $14.9 million, or $1.42 diluted earnings per share, for the three months ended September 30, 2025. ACNB completed the acquisition of Traditions Bancorp, Inc. on February 1, 2025 (“Acquisition”).

2026 Third Quarter Highlights

Return on average assets was 1.87% and return on average equity was 14.67% for the three months ended September 30, 2026
Fully taxable equivalent (“FTE”) net interest margin was 4.56% for both the three months ended September 30, 2026 and the three months ended June 30, 2026, and 4.27% for the three months ended September 30, 2025
Total noninterest-bearing deposits were $612.6 million at September 30, 2026, an increase of 2.0% from June 30, 2026; equating to an annualized growth rate of 8.17%
Tangible common equity to tangible assets ratio¹ of 10.47% at September 30, 2026 and June 30, 2026 compared to 10.14% at September 30, 2025
ACNB repurchased 11,288 shares of ACNB common stock in open market transactions during the three months ended September 30, 2026 at a weighted average price of $65.01 per share. There are 242,404 shares remaining in the current open market repurchase plan
ACNB paid a regular quarterly cash dividend of $0.42 during the three months ended September 30, 2026 and the three months ended June 30, 2026, an increase of $0.08, or 23.5%, over the $0.34 regular cash dividend paid during the three months ended September 30, 2025

_{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 report the strongest quarterly earnings performance in our Company's 169-year history, reflecting the enduring strength of our community banking franchise, disciplined execution, and unwavering focus on serving our customers and communities,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

“During the quarter, we achieved modest loan growth, saw solid core funding growth that allowed us to pay off some brokered deposits, and continued to demonstrate resilient asset quality performance. While we experienced an isolated credit issue during the quarter, our overall credit metrics remain sound and consistent with our long-standing conservative risk management culture. These results highlight the dedication of our employees, the trust of our customers, and the strength of a relationship-based banking model that continues to create value for our shareholders.”

Mr. Helt continued, “As we look ahead, we remain well positioned to capitalize on growth opportunities while maintaining the financial strength and discipline that have defined our Company for nearly 170 years.”

Net Interest Income and Margin

Net interest income for the three months ended September 30, 2026 totaled $34.8 million, an increase of $773 thousand from the three months ended June 30, 2026 and an increase of $2.6 million from the three months ended September 30, 2025. The increases were driven primarily by loan growth and loan and investment securities funded during the quarter at higher rates than those that paid off or matured. In addition, the yield on investment securities during the quarter compared to the same quarter in the prior year was impacted by a repositioning of the investment securities portfolio completed during the three months ended December 31, 2025. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.6 million, $1.8 million and $2.1 million for the three months ended September 30, 2026, the three months ended June 30, 2026 and the three months ended September 30, 2025, respectively.



	Three Months Ended												September 2026 vs. June 2026					September 2026 vs. September 2025
	September 30, 2026				June 30, 2026				September 30, 2025				Variance					Variance
_{(Dollars in thousands)}	Average Balance		Yield/Rate		Average Balance		Yield/Rate		Average Balance		Yield/Rate		Average Balance			Yield/Rate		Average Balance		Yield/Rate
ASSETS
Total Loans¹	$	2,417,290	6.44	%	$	2,401,287	6.40	%	$	2,356,641	6.29	%	$	16,003		0.04	%	$	60,649	0.15	%
Total Investments²		544,488	3.73			546,267	3.68			538,474	3.03			(1,779	)	0.05			6,014	0.70
Total Earning Assets		3,043,502	5.88			3,003,725	5.86			2,998,405	5.64			39,777		0.02			45,097	0.24
Total Assets		3,331,647				3,289,674				3,278,215				41,973					53,432
LIABILITIES
Total Interest-Bearing Deposits	$	1,918,307	1.38	%	$	1,951,477	1.36	%	$	1,916,928	1.42	%	$	(33,170	)	0.02	%	$	1,379	(0.04	)%
Noninterest-bearing demand deposits		615,423				583,453				593,800				31,970					21,623
Total Borrowings		330,789	4.22			288,304	4.27			325,747	4.24			42,485		(0.05	)		5,042	(0.02	)
Total Interest-Bearing Liabilities		2,249,096	1.80			2,239,781	1.73			2,242,675	1.83			9,315		0.07			6,421	(0.03	)
Total Liabilities and Stockholders’ Equity		3,331,647				3,289,674				3,278,215				41,973					53,432
FTE Net Interest Margin			4.56	%			4.56	%			4.27	%				—	%			0.29	%

_{¹ Average balances include non-accrual loans and are net of unearned income.} _{² Average balances of investment securities is computed at fair value.}

Three months ended September 30, 2026 compared to three months ended June 30, 2026

The FTE net interest margin was consistent with the three months ended June 30, 2026.

Average loan balances increased $16.0 million, driven primarily by growth in the real estate construction portfolio
The yields on average loans and average investment securities increased 4 and 5 basis points, respectively, driven primarily by loans and investment securities funded during the quarter at higher rates than those that paid off or matured
Average noninterest-bearing deposits increased $32.0 million driven primarily by promotional incentives on commercial checking accounts and seasonal influxes of municipal deposits

Three months ended September 30, 2026 compared to three months ended September 30, 2025

The FTE net interest margin increased 29 basis points from the three months ended September 30, 2025 driven primarily by loan growth, loans and investment securities funded during the quarter at higher rates than those that paid off or matured and the continued benefit of lower funding costs. In addition, the repositioning of the investment securities portfolio completed during the three months ended December 31, 2025 contributed to higher yields.

Average loan balances increased $60.6 million driven primarily by growth in the commercial real estate portfolio
The yields on average loans and average investment securities increased 15 and 70 basis points, respectively, driven primarily by loans and investment securities funded during the quarter at higher rates than those that paid off or matured and the repositioning of the investment securities portfolio completed during the three months ended December 31, 2025
Average noninterest-bearing deposits increased $21.6 million driven primarily by promotional incentives on commercial checking accounts

Noninterest Income


	Three Months Ended								September 2026 vs. June 2026 Variance					September 2026 vs. September 2025 Variance
	September 30,			June 30,			September 30,
_{(In thousands)}		2026			2026		2025		$			%		$			%
Insurance commissions	$	2,667		$	2,991		$	2,545	$	(324	)	(10.8	)%	$	122		4.8	%
Gain from mortgage loans held for sale		1,000			1,463			1,463		(463	)	(31.6	)		(463	)	(31.6	)
Service charges on deposits		1,304			1,243			1,286		61		4.9			18		1.4
Wealth management		1,253			1,191			1,125		62		5.2			128		11.4
ATM debit card charges		932			933			904		(1	)	(0.1	)		28		3.1
Earnings on investment in bank-owned life insurance		776			756			651		20		2.6			125		19.2
Gain on life insurance proceeds		687			—			—		687		100.0			687		100.0
Other		448			245			428		203		82.9			20		4.7
Net (losses) gains on equity securities		(35	)		(4	)		9		(31	)	N/M			(44	)	N/M
Total Noninterest Income	$	9,032		$	8,818		$	8,411	$	214		2.4	%	$	621		7.4	%

Explanations for the more significant fluctuations by period and category are detailed below:

Three months ended September 30, 2026 compared to three months ended June 30, 2026

The decrease in insurance commissions was driven primarily by contingent commission income received during the three months ended June 30, 2026 related to 2025 performance, partially offset by higher policy renewals during the three months ended September 30, 2026
The decrease in gain from mortgage loans held for sale was driven primarily by a decrease in mortgage loan originations compared to the prior quarter as a result of seasonality and rate volatility
The increase in gain on life insurance proceeds was the result of a death benefit received in the current quarter
The increase in other was driven primarily by an annual check ordering volume incentive during the current quarter

Three months ended September 30, 2026 compared to three months ended September 30, 2025

The decrease in gain from mortgage loans held for sale was driven primarily by a decrease in loan originations primarily as a result of rate volatility
The increase in wealth management was driven primarily by assets under management growth due to new business generation and positive market impacts
The increase in earnings on investment in bank-owned life insurance was driven primarily by the purchase of new policies in the fourth quarter of 2025
The increase in gain on life insurance proceeds was the result of a death benefit received in the current quarter

Noninterest Expense

	Three Months Ended						September 2026 vs. June 2026 Variance					September 2026 vs. September 2025 Variance
	September 30,		June 30,		September 30,
(In thousands)	2026		2026		2025		$			%		$			%
Salaries and employee benefits	$	14,055	$	13,761	$	13,191	$	294		2.1	%	$	864		6.5	%
Equipment		2,313		2,552		2,302		(239	)	(9.4	)		11		0.5
Net occupancy		1,208		1,209		1,217		(1	)	(0.1	)		(9	)	(0.7	)
Intangible assets amortization		1,017		1,028		1,129		(11	)	(1.1	)		(112	)	(9.9	)
Professional services		801		736		588		65		8.8			213		36.2
Other tax		661		317		561		344		108.5			100		17.8
FDIC and regulatory		440		459		457		(19	)	(4.1	)		(17	)	(3.7	)
Merger-related		—		—		169		—		—			(169	)	(100.0	)
Other		2,725		3,063		2,747		(338	)	(11.0	)		(22	)	(0.8	)
Total Noninterest Expense	$	23,220	$	23,125	$	22,361	$	95		0.4	%	$	859		3.8	%

Explanations for the more significant fluctuations by period and category are detailed below:

Three months ended September 30, 2026 compared to three months ended June 30, 2026

The increase in salaries and employee benefits was driven primarily by higher employee insurance expense, higher incentive compensation and higher insurance producer commissions
The decrease in equipment was driven primarily by timing of purchases of computer hardware and software
The increase in other tax was driven primarily by earned income tax credits received in the prior quarter as a result of community investment contributions
The decrease in other was driven primarily by the community investment contributions incurred in the prior quarter

Three months ended September 30, 2026 compared to three months ended September 30, 2025

The increase in salaries and employee benefits was driven primarily by higher incentive compensation expenses, merit increases and higher employee insurance expense
The increase in professional services was driven primarily by higher legal and advisory services related to corporate initiative expenses, including software modernization and employee stock purchase plan fees
The increase in other tax was driven primarily by asset and capital growth
The decrease in merger-related was driven by the lack of Acquisition related expenses in the current period

Loans and Asset Quality

										Variance
										September 2026			September 2026
	September 30,			June 30,			September 30,			vs.			vs.
_{(In thousands)}	2026			2026			2025			June 2026			September 2025
Commercial real estate	$	1,324,489		$	1,333,050		$	1,263,896		$	(8,561	)	$	60,593
Residential mortgage		605,815			602,738			593,283			3,077			12,532
Commercial and industrial		217,195			217,151			218,364			44			(1,169	)
Home equity lines of credit		122,840			122,164			125,839			676			(2,999	)
Real estate construction		128,349			115,091			126,451			13,258			1,898
Consumer		10,252			10,105			10,144			147			108
Gross loans		2,408,940			2,400,299			2,337,977			8,641			70,963
Unearned income		(2,429	)		(2,195	)		(1,372	)		(234	)		(1,057	)
Total loans, net of unearned income	$	2,406,511		$	2,398,104		$	2,336,605		$	8,407		$	69,906
Allowance for credit losses	$	24,976		$	24,006		$	23,660		$	970		$	1,316

September 30, 2026 compared to June 30, 2026

The $8.4 million increase in total loans from June 30, 2026 was driven primarily by:
- Real estate construction portfolio growth of $13.3 million across both commercial and residential portfolios
- Residential mortgage portfolio growth of $3.1 million, partially offset by;
- Commercial real estate portfolio decline of $8.6 million, driven primarily by a decline in non-owner occupied balances ($13.4 million) and farmland ($1.5 million) partially offset by growth in owner-occupied balances ($3.6 million) and multifamily ($1.8 million)

The allowance for credit losses was $25.0 million, an increase of $970 thousand. The increase was driven primarily by a specific allowance allocation on a relationship in the commercial and industrial portfolio and, to a lesser extent, loan growth; the bank does not believe the increase is indicative of a general weakness in the overall loan portfolio but rather the increase is driven primarily by an isolated credit issue specific to an individual borrower
Total non-performing loans to total loans, net of unearned income were 0.45% compared to 0.41% driven primarily by the migration of four loans to three unrelated borrowers totaling $1.4 million to nonaccrual partially offset by paydowns of $657 thousand

September 30, 2026 compared to September 30, 2025

The increase in total loans of $69.9 million was driven primarily by commercial real estate growth of $60.6 million concentrated in farmland ($45.2 million), multi-family ($22.3 million), owner-occupied balances ($23.3 million) and 1-4 family ($9.2 million), partially offset by a decline in non-owner occupied balances ($34.0 million)
The allowance for credit losses increased by $1.3 million. The increase was driven primarily by a specific reserve allocated to a relationship in the commercial and industrial portfolio and, to a lesser extent, loan growth
Total non-performing loans to total loans, net of unearned income was 0.45% compared to 0.43%

Deposits

								Variance
_{(In thousands)}		September 30, 2026		June 30, 2026		September 30, 2025		September 2026 vs. June 2026			September 2026 vs. September 2025
Noninterest-bearing demand deposits	$	612,620	$	600,711	$	581,697	$	11,909		$	30,923
Interest-bearing demand deposits		630,912		636,551		614,130		(5,639	)		16,782
Money market		480,430		481,015		493,430		(585	)		(13,000	)
Savings		329,269		336,504		330,200		(7,235	)		(931	)
Total demand and savings		2,053,231		2,054,781		2,019,457		(1,550	)		33,774
Time		455,732		480,895		446,439		(25,163	)		9,293
Total deposits	$	2,508,963	$	2,535,676	$	2,465,896	$	(26,713	)	$	43,067

September 30, 2026 compared to June 30, 2026

The increase in noninterest-bearing demand deposits was driven primarily by promotional incentives on commercial checking accounts and a seasonal influx of municipal deposits
The decrease in time deposits was driven primarily by the pay down of $30.0 million of brokered deposits and partially offset by growth in retail time deposits

September 30, 2026 compared to September 30, 2025

The increase in noninterest-bearing demand deposits was driven primarily by promotional incentives on commercial checking accounts
The increase in interest-bearing demand deposits was driven primarily by growth in commercial and retail balances and accounts due to new customer relationships acquired
The decrease in money market balances was driven primarily by attrition of higher cost money market deposits from the Acquisition

Borrowings

Total borrowings were $331.4 million at September 30, 2026, an increase of $8.3 million and a decrease of $4.4 million compared to June 30, 2026 and September 30, 2025, respectively. The increase compared to June 30, 2026 was due to seasonal increases in repurchase agreement balances and greater balances on accounts collateralizing derivative contracts given the recent rise in market rates. The decrease compared to September 30, 2025 was a result of lower securities sold under repurchase agreements partially offset by higher balances on accounts collateralizing derivative contracts.

Stockholders’ Equity

Total stockholders’ equity was $420.5 million at September 30, 2026 compared to $423.3 million at June 30, 2026 and $408.6 million at September 30, 2025. The decrease at September 30, 2026 compared to June 30, 2026 was driven primarily by a $15.4 million unrealized loss on investment securities, dividends paid of $4.3 million, partially offset by net income of $15.7 million. The increase at September 30, 2026 compared to September 30, 2025 was driven primarily by growth in retained earnings partially offset by changes in unrealized losses in available for sale investment securities. Tangible book value¹ per share was $33.26, $33.42 and $30.87 at September 30, 2026, June 30, 2026 and September 30, 2025, respectively.

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

About ACNB Corporation

ACNB Corporation, headquartered in Gettysburg, PA, is the independent $3.30 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, including its operating divisions Traditions Bank and Traditions Mortgage, 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 33 community banking offices and two loan offices located in the Pennsylvania counties of Adams, Berks, 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 46 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, 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; banking instability caused by bank failures and 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 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. Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of the Corporation's consolidated financial statements when filed with the SEC. Accordingly, the financial information in this announcement is subject to change. 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 #2026-13
October 22, 2026

ACNB Corporation Financial Highlights elected Financial Data by Respective Quarter End (Unaudited)

_{(Dollars in thousands, except per share data)}	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
BALANCE SHEET DATA
Total assets	$	3,300,976		$	3,318,863		$	3,269,864		$	3,228,126		$	3,250,838
Investment securities		514,165			529,774			535,760			531,131			526,570
Total loans, net of unearned income		2,406,511			2,398,104			2,349,245			2,330,514			2,336,605
Allowance for credit losses		(24,976	)		(24,006	)		(23,615	)		(23,672	)		(23,660	)
Deposits		2,508,963			2,535,676			2,525,772			2,450,185			2,465,896
Allowance for unfunded commitments		1,541			1,711			1,818			1,831			1,384
Borrowings		331,434			323,143			279,215			320,116			335,833
Stockholders’ equity		420,476			423,279			425,476			419,974			408,642
INCOME STATEMENT DATA
Interest and dividend income	$	44,951		$	43,685		$	42,232		$	42,856		$	42,490
Interest expense		10,176			9,683			9,717			10,005			10,353
Net interest income		34,775			34,002			32,515			32,851			32,137
Provision for (reversal of) credit losses		1,073			554			(76	)		106			(584	)
(Reversal of) provision for unfunded commitments		(170	)		(107	)		(13	)		447			(145	)
Net interest income after provision for (reversal of) credit losses and unfunded commitments		33,872			33,555			32,604			32,298			32,866
Noninterest income		9,032			8,818			8,274			4,332			8,411
Noninterest expenses		23,220			23,125			23,615			23,453			22,361
Income before income taxes		19,684			19,248			17,263			13,177			18,916
Income tax expense		3,957			4,034			3,560			2,372			4,046
Net income	$	15,727		$	15,214		$	13,703		$	10,805		$	14,870
PROFITABILITY RATIOS
Total loans, net of unearned income to deposits		95.92	%		94.57	%		93.01	%		95.12	%		94.76	%
Return on average assets (annualized)		1.87			1.85			1.71			1.30			1.80
Return on average equity (annualized)		14.67			14.54			12.97			10.31			14.66
Efficiency ratio¹		51.45			51.60			55.84			53.39			51.96
FTE Net interest margin		4.56			4.56			4.46			4.36			4.27
Yield on average earning assets		5.88			5.86			5.78			5.69			5.64
Yield on investment securities		3.73			3.68			3.66			3.17			3.03
Yield on total loans		6.44			6.40			6.35			6.33			6.29
Cost of funds		1.41			1.38			1.41			1.40			1.45
PER SHARE DATA
Diluted earnings per share	$	1.55		$	1.49		$	1.32		$	1.04		$	1.42
Cash dividends paid per share		0.42			0.92			0.38			0.38			0.34
Tangible book value per share¹		33.26			33.42			32.99			32.22			30.87
CAPITAL RATIOS²
Tier 1 leverage ratio		11.77	%		11.55	%		11.74	%		11.40	%		11.22	%
Common equity tier 1 ratio		15.01			14.49			14.92			14.74			14.45
Tier 1 risk based capital ratio		15.23			14.71			15.14			14.96			14.67
Total risk based capital ratio		16.81			16.25			16.73			16.54			16.22
CREDITQUALITY
Net charge-offs (recoveries) to average loans outstanding (annualized)		0.02	%		0.03	%	(0.00		)%		0.02	%		0.02	%
Total non-performing loans to total loans, net of unearned income³		0.45			0.41			0.41			0.46			0.43
Total non-performing assets to total assets⁴		0.34			0.31			0.29			0.33			0.31
Allowance for credit losses to total loans, net of unearned income		1.04			1.00			1.01			1.02			1.01

_{¹ Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.}
_{²Regulatory capital ratios as of September 30, 2026 are preliminary.}
_{³ Non-performing loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest.}
_{⁴Non-performing assets consists of non-performing loans and foreclosed assets held for resale.}


Consolidated Statements of Condition (Unaudited)

_{(Dollars in thousands, except per share data)}	September 30, 2026			June 30, 2026			September 30, 2025
ASSETS
Cash and due from banks	$	27,239		$	27,995		$	30,500
Interest-bearing deposits with banks		61,119			53,840			71,639
Total Cash and Cash Equivalents		88,358			81,835			102,139
Equity securities with readily determinable fair values		903			938			945
Investment securities available for sale, at estimated fair value		450,784			466,216			462,217
Investment securities held to maturity, at amortized cost (fair value $51,603,
$56,576 and $56,932)		62,478			62,620			63,408
Loans held for sale		8,166			33,528			16,850
Total loans, net of unearned income		2,406,511			2,398,104			2,336,605
Less: Allowance for credit losses		(24,976	)		(24,006	)		(23,660	)
Loans, net		2,381,535			2,374,098			2,312,945
Premises and equipment, net		27,923			27,982			31,107
Right of use asset		3,658			3,920			4,403
Restricted investment in bank stocks		14,243			14,290			14,462
Investment in bank-owned life insurance		104,499			106,423			96,755
Investments in low-income housing partnerships		657			689			783
Goodwill		64,449			64,449			64,449
Intangible assets, net		19,335			20,351			23,565
Assets held for sale		2,346			2,346			275
Other assets		71,642			59,178			56,535
Total Assets	$	3,300,976		$	3,318,863		$	3,250,838

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	612,620		$	600,711		$	581,697
Interest-bearing		1,896,343			1,934,965			1,884,199
Total Deposits		2,508,963			2,535,676			2,465,896
Short-term borrowings		116,509			108,259			80,468
Long-term borrowings		214,925			214,884			255,365
Lease liability		3,944			4,218			4,696
Allowance for unfunded commitments		1,541			1,711			1,384
Other liabilities		34,618			30,836			34,387
Total Liabilities		2,880,500			2,895,584			2,842,196
Stockholders’ Equity:
Preferred Stock, $2.50 par value, 20,000,000 shares authorized; no shares outstanding at September 30, 2026, June 30, 2026 and September 30, 2025		—			—			—
Common stock, $2.50 par value, 40,000,000, 40,000,000, and 20,000,000 shares authorized; 11,084,900, 11,079,210, and 11,023,573 shares issued; 10,164,332, 10,169,930, and 10,423,015 shares outstanding at September 30, 2026, June 30, 2026 and September 30, 2025, respectively		27,706			27,692			27,555
Treasury stock, at cost, 920,568, 909,280, and 600,558 at September 30, 2026, June 30, 2026, and September 30, 2025, respectively		(35,856	)		(35,114	)		(19,875	)
Additional paid-in capital		181,866			181,107			179,130
Retained earnings		284,437			272,965			250,410
Accumulated other comprehensive loss		(37,677	)		(23,371	)		(28,578	)
Total Stockholders’ Equity		420,476			423,279			408,642
Total Liabilities and Stockholders’ Equity	$	3,300,976		$	3,318,863		$	3,250,838


Consolidated Income Statements (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
_{(Dollars in thousands, except per share data)}		2026			2025			2026			2025
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	38,776		$	36,961		$	112,961		$	105,192
Tax-exempt		357			324			1,044			933
Investment securities:
Taxable		4,373			3,430			12,957			9,615
Tax-exempt		323			281			957			852
Dividends		338			332			938			979
Other		784			1,162			2,011			2,785
TotalInterestandDividendIncome		44,951			42,490			130,868			120,356
INTEREST EXPENSE
Deposits		6,659			6,872			19,660			20,152
Short-term borrowings		969			513			2,084			1,148
Long-term borrowings		2,548			2,968			7,832			8,817
Total Interest Expense		10,176			10,353			29,576			30,117
Net Interest Income		34,775			32,137			101,292			90,239
Provision for (reversal of) credit losses		1,073			(584	)		1,551			5,156
Reversal of provision for unfunded commitments		(170	)		(145	)		(290	)		(979	)
Net Interest Income after Provision for (Reversal of) Credit Losses and Unfunded Commitments		33,872			32,866			100,031			86,062
NON INTEREST INCOME
Insurance commissions		2,667			2,545			7,786			7,600
Gain from mortgage loans held for sale		1,000			1,463			3,689			3,893
Service charges on deposits		1,304			1,286			3,782			3,559
Wealth management		1,253			1,125			3,604			3,275
ATM debit card charges		932			904			2,771			2,640
Earnings on investment in bank-owned life insurance		776			651			2,269			1,858
Gain on assets held for sale		—			—			177			—
Gain on life insurance proceeds		687			—			861			285
Other		448			428			1,182			1,119
Net gains on sales or calls of investment securities		—			—			49			22
Net (losses) gains on equity securities		(35	)		9			(46	)		26
Total Noninterest Income		9,032			8,411			26,124			24,277
NON INTEREST EXPENSES
Salaries and employee benefits		14,055			13,191			41,843			39,745
Equipment		2,313			2,302			7,465			7,121
Net occupancy		1,208			1,217			3,950			3,936
Intangible assets amortization		1,017			1,129			3,101			3,127
Professional services		801			588			2,215			1,908
Other tax		661			561			1,555			1,308
FDIC and regulatory		440			457			1,341			1,293
Merger-related		—			169			—			10,143
Other		2,725			2,747			8,490			8,481
Total Noninterest Expenses		23,220			22,361			69,960			77,062
Income Before Income Taxes		19,684			18,916			56,195			33,277
Income tax expense		3,957			4,046			11,551			7,031
Net Income	$	15,727		$	14,870		$	44,644		$	26,246
PER SHARE DATA
Basic earnings	$	1.55		$	1.43		$	4.37		$	2.57
Diluted earnings	$	1.55		$	1.42		$	4.36		$	2.56
Weighted average shares basic		10,126,509			10,419,581			10,214,487			10,228,029
Weighted average shares diluted		10,167,874			10,455,461			10,248,050			10,257,800

Average Balances, Income and Expenses, Yields and Rates

	Three Months Ended								Three Months Ended										Three Months Ended										Three Months Ended								Three Months Ended
	September 30, 2026								June 30, 2026										March 31, 2026										December 31, 2025								September 30,2025
_{(Dollars in thousands)}	Average Balance			Interest¹			Yield/Rate		Average Balance			Interest1					Yield/Rate		Average Balance			Interest¹					Yield/Rate		Average Balance			Interest¹			Yield/Rate		Average Balance			Interest¹					Yield/Rate
ASSETS
Loans:
Taxable	$	2,362,793		$	38,776		6.51	%	$	2,345,905		$	37,883				6.48	%	$	2,290,463		$	36,302				6.43	%	$	2,305,296		$	37,293		6.42	%	$	2,298,054		$	36,961				6.38	%
Tax-exempt		54,497			452		3.29			55,382			442				3.20			56,344			428				3.08			58,740			434		2.93			58,587			410				2.78
Total Loans²		2,417,290			39,228		6.44			2,401,287			38,325				6.40			2,346,807			36,730				6.35			2,364,036			37,727		6.33			2,356,641			37,371				6.29
Investment Securities:
Taxable		488,625			4,711		3.83			490,321			4,609				3.77			494,221			4,575				3.75			480,987			3,900		3.22			485,309			3,762				3.08
Tax-exempt		55,863			409		2.90			55,946			405				2.90			56,036			397				2.87			54,518			376		2.74			53,165			356				2.66
Total Investments³		544,488			5,120		3.73			546,267			5,014				3.68			550,257			4,972				3.66			535,505			4,276		3.17			538,474			4,118				3.03
Interest-bearing deposits with banks		81,724			784		3.81			56,171			524				3.74			76,769			703				3.71			101,846			1,023		3.99			103,290			1,162				4.46
Total Earning Assets		3,043,502			45,132		5.88			3,003,725			43,863				5.86			2,973,833			42,405				5.78			3,001,387			43,026		5.69			2,998,405			42,651				5.64
Cash and due from banks		27,793								25,827										24,482										25,686								26,709
Premises and equipment		28,066								28,757										30,611										31,297								31,514
Other assets		256,267								254,925										249,769										250,508								245,899
Allowance for credit losses		(23,981	)							(23,560	)									(23,682	)									(23,646	)							(24,312	)
Total Assets	$	3,331,647							$	3,289,674									$	3,255,013									$	3,285,232							$	3,278,215
LIABILITIES
Interest-bearing demand deposits	$	641,483		$	652		0.40	%	$	650,258				$	595		0.37	%	$	616,311				$	460		0.30	%	$	633,593		$	545		0.34	%	$	616,565				$	570		0.37	%
Money markets		480,604			2,282		1.88			489,449					2,266		1.86			489,957					2,227		1.84			491,932			2,322		1.87			510,655					2,530		1.97
Savings deposits		331,158			27		0.03			335,451					26		0.03			335,398					26		0.03			331,309			27		0.03			335,083					26		0.03
Time deposits		465,062			3,698		3.15			476,319					3,727		3.14			472,621					3,674		3.15			454,083			3,653		3.19			454,625					3,746		3.27
Total Interest-Bearing Deposits		1,918,307			6,659		1.38			1,951,477					6,614		1.36			1,914,287					6,387		1.35			1,910,917			6,547		1.36			1,916,928					6,872		1.42
Short-term borrowings		115,889			969		3.32			73,266					552		3.02			74,562					563		3.06			69,326			491		2.81			70,389					513		2.89
Long-term borrowings		214,900			2,548		4.70			215,038					2,517		4.69			243,880					2,767		4.60			255,369			2,967		4.61			255,358					2,968		4.61
Total Borrowings		330,789			3,517		4.22			288,304					3,069		4.27			318,442					3,330		4.24			324,695			3,458		4.23			325,747					3,481		4.24
Total Interest-Bearing Liabilities		2,249,096			10,176		1.80			2,239,781					9,683		1.73			2,232,729					9,717		1.77			2,235,612			10,005		1.78			2,242,675					10,353		1.83
Noninterest-bearing demand deposits		615,423								583,453										554,591										592,956								593,800
Other liabilities		41,690								46,848										39,174										40,963								39,397
Stockholders’ Equity		425,438								419,592										428,519										415,701								402,343
Total Liabilities and Stockholders’ Equity	$	3,331,647							$	3,289,674									$	3,255,013									$	3,285,232							$	3,278,215
Taxable Equivalent Net Interest Income					34,956										34,180										32,688								33,021										32,298
Taxable Equivalent Adjustment					(181	)									(178	)									(173	)							(170	)									(161	)
Net Interest Income				$	34,775									$	34,002									$	32,515							$	32,851									$	32,137
Cost of Funds							1.41	%									1.38	%									1.41	%							1.40	%									1.45	%
FTE Net Interest Margin							4.56	%									4.56	%									4.46	%							4.36	%									4.27	%

_{¹ Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate.}
_{² Average balances include non-accrual loans and are net of unearned income.}
_{³ Average balances of investment securities is computed at fair value.}

Average Balances, Income and Expenses, Yields and Rates

	Nine Months Ended September 30, 2026								Nine Months Ended September 30, 2025
_{(Dollars in thousands)}		Average Balance			Interest¹		Yield/Rate			Average Balance			Interest¹				Yield/Rate
Loans:
Taxable	$	2,333,318		$	112,961		6.47	%	$	2,225,652		$	105,192				6.32	%
Tax-exempt		55,401			1,322		3.19			58,489			1,181				2.70
Total Loans²		2,388,719			114,283		6.40			2,284,141			106,373				6.23
Investment Securities:
Taxable		491,035			13,895		3.78			472,212			10,594				3.00
Tax-exempt		55,948			1,211		2.89			54,023			1,078				2.67
Total Investments³		546,983			15,106		3.69			526,235			11,672				2.97
Interest-bearing deposits with banks		71,573			2,011		3.76			84,717			2,785				4.40
Total Earning Assets		3,007,275			131,400		5.84			2,895,093			120,830				5.58
Cash and due from banks		26,046								24,330
Premises and equipment		29,135								31,151
Other assets		253,678								242,143
Allowance for credit losses		(23,742	)							(22,971	)
Total Assets	$	3,292,392							$	3,169,746
LIABILITIES
Interest-bearing demand deposits	$	636,141		$	1,707		0.36	%	$	601,064				$	1,608		0.36	%
Money markets		486,636			6,775		1.86			498,468					7,220		1.94
Savings deposits		333,987			79		0.03			336,185					80		0.03
Time deposits		471,306			11,099		3.15			446,482					11,244		3.37
Total Interest-Bearing Deposits		1,928,070			19,660		1.36			1,882,199					20,152		1.43
Short-term borrowings		88,057			2,084		3.16			51,324					1,148		2.99
Long-term borrowings		224,500			7,832		4.66			256,080					8,817		4.60
Total Borrowings		312,557			9,916		4.24			307,404					9,965		4.33
Total Interest-Bearing Liabilities		2,240,627			29,576		1.76			2,189,603					30,117		1.84
Noninterest-bearing demand deposits		584,712								556,992
Other liabilities		42,548								38,543
Stockholders’ Equity		424,505								384,608
Total Liabilities and Stockholders’ Equity	$	3,292,392							$	3,169,746
Taxable Equivalent Net Interest Income					101,824										90,713
Taxable Equivalent Adjustment					(532	)									(474	)
Net Interest Income				$	101,292									$	90,239
Cost of Funds							1.40	%									1.47	%
FTE Net Interest Margin							4.53	%									4.19	%

_{¹ Income on interest-earning assets has been computed on a fully taxable equivalent basis (FTE) using the 21% federal income tax statutory rate.}
_{² Average balances include non-accrual loans and are net of unearned income.}
_{³ Average balances of investment securities is computed at fair value.}

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, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
Tangible book value per share
Stockholders’ equity	$	420,476		$	423,279		$	425,476		$	419,974		$	408,642
Less: Goodwill and intangible assets		(83,784	)		(84,800	)		(85,828	)		(86,884	)		(88,014	)
Tangible common stockholders’ equity (numerator)	$	336,692		$	338,479		$	339,648		$	333,090		$	320,628
Shares outstanding, less unvested shares, end of period (denominator)		10,122,967			10,128,565			10,296,825			10,337,757			10,387,135
Tangible book value per share	$	33.26		$	33.42		$	32.99		$	32.22		$	30.87
Tangible common equity to tangible assets (TCE/TA Ratio)
Tangible common stockholders’ equity (numerator)	$	336,692		$	338,479		$	339,648		$	333,090		$	320,628
Total assets	$	3,300,976		$	3,318,863		$	3,269,864		$	3,228,126		$	3,250,838
Less: Goodwill and intangible assets		(83,784	)		(84,800	)		(85,828	)		(86,884	)		(88,014	)
Total tangible assets (denominator)	$	3,217,192		$	3,234,063		$	3,184,036		$	3,141,242		$	3,162,824
Tangible common equity to tangible assets		10.47	%		10.47	%		10.67	%		10.60	%		10.14	%
Efficiency Ratio
Noninterest expense	$	23,220		$	23,125		$	23,615		$	23,453		$	22,361
Less: Intangible amortization		1,017			1,028			1,056			1,130			1,129
Less: Merger-related expense		—			—			—			575			169
Noninterest expense (numerator)	$	22,203		$	22,097		$	22,559		$	21,748		$	21,063
Net interest income	$	34,775		$	34,002		$	32,515		$	32,851		$	32,137
Plus: Total noninterest income		9,032			8,818			8,274			4,332			8,411
Less: Gain on assets held for sale		—			—			177			—			—
Less: Gain on life insurance proceeds		687			—			174			—			—
Less: Net gains (losses) on sales or calls of securities		—			—			49			(3,557	)		—
Less: Net (losses) gains on equity securities		(35	)		(4	)		(7	)		4			9
Total revenue (denominator)	$	43,155		$	42,824		$	40,396		$	40,736		$	40,539
Efficiency ratio		51.45	%		51.60	%		55.84	%		53.39	%		51.96	%

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

ACNB Corporation Reports Record 2026 Third Quarter Financial Results

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