ACNB Corporation Reports Record 2026 Second Quarter Financial Results

GETTYSBURG, Pa., July 23, 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 $15.2 million, or $1.49 diluted earnings per share, for the three months ended June 30, 2026 compared to net income of $13.7 million, or $1.32 diluted earnings per share, for the three months ended March 31, 2026 and compared to net income of $11.6 million, or $1.11 diluted earnings per share, for the three months ended June 30, 2025. The financial results for the three months ended June 30, 2025 were impacted by after-tax merger-related expenses of $1.5 million related to the acquisition of Traditions Bancorp, Inc. which was completed on February 1, 2025 (“Acquisition”).

2026 Second Quarter Highlights

• Return on average assets was 1.85% and return on average equity was 14.54% for the three months ended June 30, 2026
• Fully taxable equivalent (“FTE”) net interest margin was 4.56% for the three months ended June 30, 2026 compared to 4.46% for the three months ended March 31, 2026 and 4.21% for the three months ended June 30, 2025
• Total loans outstanding were $2.40 billion at June 30, 2026, an increase of 2.1% from March 31, 2026; equating to an annualized growth rate of 8.6%
• Total noninterest-bearing deposits were $600.7 million at June 30, 2026, an increase of 4.3% from March 31, 2026; equating to an annualized growth rate of 18.3%
• Tangible common equity to tangible assets ratio1 of 10.47% at June 30, 2026 compared to 10.67% at March 31, 2026 and 9.65% at June 30, 2025
• ACNB repurchased 179,407 shares of ACNB common stock in open market transactions during the three months ended June 30, 2026 at a weighted average price of $50.79 per share. There are 253,692 shares remaining in the current plan
• ACNB paid a regular quarterly cash dividend of $0.42 during the three months ended June 30, 2026, a 10.5% increase, or $0.04, over the $0.38 cash dividend paid during the three months ended March 31, 2026, and a 23.5% increase over the $0.34 paid during the three months ended June 30, 2025. In addition to the regular dividend, ACNB paid a one-time special cash dividend of $0.50 per share during the three months ended June 30, 2026

“Our record setting second quarter performance reflects the successful execution of our strategic priorities and the strength of our balanced business model. Record earnings, strong loan production, stable asset quality, and robust noninterest-bearing deposit growth demonstrate the resilience of our franchise and our ability to deliver consistent value for our shareholders,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

“During the quarter, we were pleased to increase our regular quarterly cash dividend, declare a special dividend and continue our share repurchase program, reflecting both our strong financial position and confidence in the long-term outlook for the Company. These results are driven by the exceptional commitment of our employees, whose focus on serving our customers and communities continues to differentiate our organization. Their dedication to executing our strategic plan enables us to deepen customer relationships, capitalize on growth opportunities, and strengthen our competitive position.”

Mr. Helt continued, “As we look ahead, we remain committed to disciplined growth, prudent risk management, and delivering sustainable long-term shareholder value while advancing our vision of being the financial provider of choice in the markets we serve.”

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

Net Interest Income and Margin

Net interest income for the three months ended June 30, 2026 totaled $34.0 million, an increase of $1.5 million from the three months ended March 31, 2026 and an increase of $3.0 million from the three months ended June 30, 2025. The increases were driven primarily by loan growth, new 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 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 $1.8 million, $1.9 million and $2.2 million for the three months ended June 30, 2026, the three months ended March 31, 2026 and the three months ended June 30, 2025, respectively.

	Three Months Ended															June 2026 vs. March 2026 Variance							June 2026 vs. June 2025 Variance
	June 30, 2026					March 31, 2026					June 30, 2025
(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	$	2,401,287	6.40	%		$	2,346,807	6.35	%		$	2,355,332	6.29	%		$	54,480			0.05	%		$	45,955			0.11	%
Total Investments2		546,267	3.68				550,257	3.66				537,194	2.95				(3,990	)		0.02				9,073			0.73
Total Earning Assets		3,003,725	5.86				2,973,833	5.78				2,969,874	5.64				29,892			0.08				33,851			0.22
Total Assets		3,289,674					3,255,013					3,258,512					34,661							31,162
LIABILITIES
Total Interest-Bearing Deposits	$	1,951,477	1.36	%		$	1,914,287	1.35	%		$	1,965,483	1.49	%		$	37,190			0.01	%		$	(14,006	)		(0.13	)%
Noninterest-bearing demand deposits		583,453					554,591					563,321					28,862							20,132
Total Borrowings		288,304	4.27				318,442	4.24				299,862	4.39				(30,138	)		0.03				(11,558	)		(0.12	)
Total Interest-Bearing Liabilities		2,239,781	1.73				2,232,729	1.77				2,265,345	1.87				7,052			(0.04	)			(25,564	)		(0.14	)
Total Liabilities and Stockholders’ Equity		3,289,674					3,255,013					3,258,512					34,661							31,162
FTE Net Interest Margin			4.56	%				4.46	%				4.21	%						0.10	%						0.35	%

 

Three months ended June 30, 2026 compared to three months ended March 31, 2026

The FTE net interest margin increased 10 basis points from the three months ended March 31, 2026 driven primarily by loan growth, new 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.

• Average loan balances increased $54.5 million, driven primarily by growth in the commercial real estate portfolio
• The yields on average loans and average investment securities increased 5 and 2 basis points, respectively, driven primarily by new loans and investment securities funded during the quarter at higher rates than those that paid off or matured
• Average noninterest-bearing deposits increased $28.9 million driven primarily by promotional incentives on commercial checking accounts

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

The FTE net interest margin increased 35 basis points from the three months ended June 30, 2025 driven primarily by loan growth, new 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 $46.0 million driven primarily by growth in the commercial real estate portfolio
• The yields on average loans and average investment securities increased 11 and 73 basis points, respectively, driven primarily by new 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 $20.1 million driven primarily by promotional incentives on commercial checking accounts
• Average interest-bearing deposits decreased $14.0 million primarily as a result of attrition of higher cost money market deposits from the Acquisition

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

Noninterest Income

	Three Months Ended								June 2026 vs. March 2026 Variance					June 2026 vs. June 2025 Variance
(In thousands)	June 30, 2026			March 31, 2026			June 30, 2025		$			%		$			%
Insurance commissions	$	2,991		$	2,128		$	2,908	$	863		40.6	%	$	83		2.9	%
Gain from mortgage loans held for sale		1,463			1,226			1,575		237		19.3			(112	)	(7.1	)
Service charges on deposits		1,243			1,235			1,179		8		0.6			64		5.4
Wealth management		1,191			1,160			1,090		31		2.7			101		9.3
ATM debit card charges		933			906			905		27		3.0			28		3.1
Earnings on investment in bank-owned life insurance		756			737			627		19		2.6			129		20.6
Gain on assets held for sale		—			177			—		(177	)	(100.0	)		—		—
Gain on life insurance proceeds		—			174			31		(174	)	(100.0	)		(31	)	(100.0	)
Other		245			489			342		(244	)	(49.9	)		(97	)	(28.4	)
Net gains on sales or calls of investment securities		—			49			22		(49	)	(100.0	)		(22	)	(100.0	)
Net (losses) gain on equity securities		(4	)		(7	)		3		3		(42.9	)		(7	)	(233.3	)
Total Noninterest Income	$	8,818		$	8,274		$	8,682	$	544		6.6	%	$	136		1.6	%

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

Three months ended June 30, 2026 compared to three months ended March 31, 2026

• The increase in insurance commissions was driven primarily by an increase in contingent commission income received during the three months ended June 30, 2026 related to 2025 performance, and, to a lesser extent, new business underwriting and timing of policy renewals
• The increase in gain from mortgage loans held for sale was driven primarily by seasonally higher loan origination volume in the current quarter
• The decrease in gain on assets held for sale was the result of the sale of a building in the prior quarter
• The decrease in gain on life insurance proceeds was the result of a death benefit received in the prior quarter
• The decrease in other was driven primarily by a gain on a loan participation in the prior quarter

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

• 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 decrease in other was primarily attributable to lower credit card processing and letter of credit fees
  
  

Noninterest Expense

	Three Months Ended									June 2026 vs. March 2026 Variance						June 2026 vs. June 2025 Variance
(In thousands)	June 30, 2026			March 31, 2026			June 30, 2025			$				%		$				%
Salaries and employee benefits	$		13,761		$	14,027		$	13,693		$	(266	)	(1.9	)%		$	68		0.5	%
Equipment			2,552			2,600			2,539			(48	)	(1.8	)			13		0.5
Net occupancy			1,209			1,533			1,277			(324	)	(21.1	)			(68	)	(5.3	)
Intangible assets amortization			1,028			1,056			1,141			(28	)	(2.7	)			(113	)	(9.9	)
Professional services			736			678			743			58		8.6				(7	)	(0.9	)
Other tax			317			577			220			(260	)	(45.1	)			97		44.1
FDIC and regulatory			459			442			435			17		3.8				24		5.5
Merger-related			—			—			1,943			—		—				(1,943	)	(100.0	)
Other			3,063			2,702			3,375			361		13.4				(312	)	(9.2	)
Total Noninterest Expense	$		23,125		$	23,615		$	25,366		$	(490	)	(2.1	)%		$	(2,241	)	(8.8	)%

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

Three months ended June 30, 2026 compared to three months ended March 31, 2026

• The decrease in salaries and employee benefits was driven primarily by seasonal expenses related to incentive stock awards and ACNB’s liability for unused vacation days in the prior quarter
• The decrease in net occupancy was driven primarily by seasonally higher snow removal charges and utility expenses in the prior quarter
• The decrease in other tax was driven primarily by earned income tax credits received in the current quarter as a result of community investment contributions
• The increase in other was driven primarily by the community investment contributions

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

• The decrease in intangible assets amortization was the result of normal attrition
• The increase in other tax was driven primarily by asset growth due to the Acquisition
• The decrease in other was driven primarily by the write-off of stale conversion related items in the prior year
• The decrease in merger-related was driven by the lack of Acquisition related expenses in the current period
   

Loans and Asset Quality

										Variance
(In thousands)	June 30, 2026			March 31, 2026			June 30, 2025			June 2026 vs. March 2026			June 2026 vs. June 2025
Loans
Commercial real estate	$	1,333,050		$	1,301,807		$	1,254,733		$	31,243		$	78,317
Residential mortgage		602,738			602,305			594,889			433			7,849
Commercial and industrial		217,151			204,714			226,276			12,437			(9,125	)
Home equity lines of credit		122,164			126,473			122,546			(4,309	)		(382	)
Real estate construction		115,091			106,128			135,023			8,963			(19,932	)
Consumer		10,105			9,864			10,253			241			(148	)
Gross loans		2,400,299			2,351,291			2,343,720			49,008			56,579
Unearned income		(2,195	)		(2,046	)		(1,904	)		(149	)		(291	)
Total loans, net of unearned income	$	2,398,104		$	2,349,245		$	2,341,816		$	48,859		$	56,288
Allowance for credit losses	$	24,006		$	23,615		$	24,353		$	391		$	(347	)

 

June 30, 2026 compared to March 31, 2026

• The $48.9 million increase in total loans from March 31, 2026 was driven primarily by

• • Commercial real estate growth of $31.2 million, driven primarily by farmland ($31.1 million) and owner-occupied balances ($12.5 million), partially offset by a decline in non-owner occupied balances ($11.0 million)
  • Commercial and industrial growth of $12.4 million, driven primarily by three new relationships in the Lancaster and Berks regions
  • Real estate construction growth of $9.0 million, driven primarily by residential construction and the funding of commitments

• The allowance for credit losses was $24.0 million, an increase of $391 thousand driven primarily by loan growth
• Total non-performing loans to total loans, net of unearned income were 0.41% in both quarters

June 30, 2026 compared to June 30, 2025

• The increase in total loans of $56.3 million was driven primarily by commercial real estate growth of 
  $78.3 million concentrated in farmland ($49.7 million), multi-family ($29.9 million) and owner-occupied balances ($18.0 million), partially offset by a decline in non-owner occupied balances ($21.2 million)
• The allowance for credit losses decreased by $347 thousand driven primarily by the paydown of loans with specific reserves
• Total non-performing loans to total loans, net of unearned income was 0.41% compared to 0.43%
   

Deposits

							Variance
(In thousands)	June 30, 2026		March 31, 2026		June 30, 2025		June 2026 vs. March 2026			June 2026 vs. June 2025
Noninterest-bearing demand deposits	$	600,711	$	576,056	$	568,301	$	24,655		$	32,410
Interest-bearing demand deposits		636,551		625,363		604,854		11,188			31,697
Money market		481,015		497,031		531,738		(16,016	)		(50,723	)
Savings		336,504		338,763		339,179		(2,259	)		(2,675	)
Total demand and savings		2,054,781		2,037,213		2,044,072		17,568			10,709
Time		480,895		488,559		480,469		(7,664	)		426
Total deposits	$	2,535,676	$	2,525,772	$	2,524,541	$	9,904		$	11,135

June 30, 2026 compared to March 31, 2026

• 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 an influx of seasonal deposits
• The decrease in money market balances was driven primarily by attrition of higher cost money market deposits from the Acquisition
• The decrease in time deposits was driven primarily by the pay down of $14.1 million of brokered deposits partially offset by growth in retail time deposits

June 30, 2026 compared to June 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 through promotional incentives
• The decrease in money market balances was driven primarily by attrition of higher cost money market deposits from the Acquisition

Borrowings

Total borrowings were $323.1 million at June 30, 2026, an increase of $43.9 million and $24.7 million compared to March 31, 2026 and June 30, 2025, respectively. The increases were to fund loan growth.

Stockholders’ Equity

Total stockholders’ equity was $423.3 million at June 30, 2026 compared to $425.5 million at March 31, 2026 and $395.2 million at June 30, 2025. The decrease at June 30, 2026 compared to March 31, 2026 was driven primarily by dividends paid of $9.3 million and common stock repurchases of $9.2 million, partially offset by net income of $15.2 million. The increase at June 30, 2026 compared to June 30, 2025 was driven primarily by growth in retained earnings and changes in unrealized losses in available for sale investment securities. Tangible book value1 per share was $33.42, $32.99 and $29.30 at June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

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¹ Non-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 $3.32 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 #2026-10
July 23, 2026

ACNB Corporation Financial Highlights Selected Financial Data by Respective Quarter End (Unaudited)
(Dollars in thousands, except per share data)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
BALANCE SHEET DATA
Total assets	$	3,318,863		$	3,269,864		$	3,228,126		$	3,250,838		$	3,259,528
Investment securities		529,774			535,760			531,131			526,570			520,758
Total loans, net of unearned income		2,398,104			2,349,245			2,330,514			2,336,605			2,341,816
Allowance for credit losses		(24,006	)		(23,615	)		(23,672	)		(23,660	)		(24,353	)
Deposits		2,535,676			2,525,772			2,450,185			2,465,896			2,524,541
Allowance for unfunded commitments		1,711			1,818			1,831			1,384			1,529
Borrowings		323,143			279,215			320,116			335,833			298,395
Stockholders’ equity		423,279			425,476			419,974			408,642			395,151
INCOME STATEMENT DATA
Interest and dividend income	$	43,685		$	42,232		$	42,856		$	42,490		$	41,576
Interest expense		9,683			9,717			10,005			10,353			10,564
Net interest income		34,002			32,515			32,851			32,137			31,012
Provision for (reversal of) credit losses		554			(76	)		106			(584	)		(228	)
(Reversal of) provision for unfunded commitments		(107	)		(13	)		447			(145	)		(354	)
Net interest income after provision for (reversal of) credit losses and unfunded commitments		33,555			32,604			32,298			32,866			31,594
Noninterest income		8,818			8,274			4,332			8,411			8,682
Noninterest expenses		23,125			23,615			23,453			22,361			25,366
Income before income taxes		19,248			17,263			13,177			18,916			14,910
Income tax expense		4,034			3,560			2,372			4,046			3,262
Net income	$	15,214		$	13,703		$	10,805		$	14,870		$	11,648
PROFITABILITY RATIOS
Total loans, net of unearned income to deposits		94.57	%		93.01	%		95.12	%		94.76	%		92.76	%
Return on average assets (annualized)		1.85			1.71			1.30			1.80			1.43
Return on average equity (annualized)		14.54			12.97			10.31			14.66			11.96
Efficiency ratio1		51.60			55.84			53.39			51.96			56.21
FTE Net interest margin		4.56			4.46			4.36			4.27			4.21
Yield on average earning assets		5.86			5.78			5.69			5.64			5.64
Yield on investment securities		3.68			3.66			3.17			3.03			2.95
Yield on total loans		6.40			6.35			6.33			6.29			6.29
Cost of funds		1.38			1.41			1.40			1.45			1.50
PER SHARE DATA
Diluted earnings per share	$	1.49		$	1.32		$	1.04		$	1.42		$	1.11
Cash dividends paid per share		0.92			0.38			0.38			0.34			0.34
Tangible book value per share1		33.42			32.99			32.22			30.87			29.30
CAPITAL RATIOS2
Tier 1 leverage ratio		11.55	%		11.74	%		11.40	%		11.22	%		10.97	%
Common equity tier 1 ratio		14.49			14.92			14.74			14.45			13.96
Tier 1 risk based capital ratio		14.71			15.14			14.96			14.67			14.17
Total risk based capital ratio		16.25			16.73			16.54			16.22			15.75
CREDIT QUALITY
Net charge-offs (recoveries) to average loans outstanding (annualized)		0.03	%		(0.00	)%		0.02	%		0.02	%		0.01	%
Total non-performing loans to total loans, net of unearned income3		0.41			0.41			0.46			0.43			0.43
Total non-performing assets to total assets4		0.31			0.29			0.33			0.31			0.31
Allowance for credit losses to total loans, net of unearned income		1.00			1.01			1.02			1.01			1.04

_______________
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 June 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.
⁴ Non-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)	June 30, 2026			March 31, 2026			June 30, 2025
ASSETS
Cash and due from banks	$	27,995		$	25,649		$	32,834
Interest-bearing deposits with banks		53,840			67,986			70,275
Total Cash and Cash Equivalents		81,835			93,635			103,109
Equity securities with readily determinable fair values		938			942			936
Investment securities available for sale, at estimated fair value		466,216			471,659			455,317
Investment securities held to maturity, at amortized cost
(fair value $56,576, $56,248 and $56,420)		62,620			63,159			64,505
Loans held for sale		33,528			15,155			16,455
Total loans, net of unearned income		2,398,104			2,349,245			2,341,816
Less: Allowance for credit losses		(24,006	)		(23,615	)		(24,353	)
Loans, net		2,374,098			2,325,630			2,317,463
Premises and equipment, net		27,982			30,373			31,581
Right of use asset		3,920			4,053			4,657
Restricted investment in bank stocks		14,290			12,574			13,533
Investment in bank-owned life insurance		106,423			105,667			96,104
Investments in low-income housing partnerships		689			720			814
Goodwill		64,449			64,449			64,449
Intangible assets, net		20,351			21,379			24,694
Assets held for sale		2,346			—			—
Other assets		59,178			60,469			65,911
Total Assets	$	3,318,863		$	3,269,864		$	3,259,528
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	600,711		$	576,056		$	568,301
Interest-bearing		1,934,965			1,949,716			1,956,240
Total Deposits		2,535,676			2,525,772			2,524,541
Short-term borrowings		108,259			63,828			43,041
Long-term borrowings		214,884			215,387			255,354
Lease liability		4,218			4,352			4,946
Allowance for unfunded commitments		1,711			1,818			1,529
Other liabilities		30,836			33,231			34,966
Total Liabilities		2,895,584			2,844,388			2,864,377
Stockholders’ Equity:
Preferred Stock, $2.50 par value, 20,000,000 shares authorized; no shares outstanding at June 30, 2026, March 31, 2026 and June 30, 2025		—			—			—
Common stock, $2.50 par value, 40,000,000, 20,000,000, and 20,000,000 shares authorized; 11,079,210, 11,068,063, and 11,017,121 shares issued; 10,169,930, 10,338,190, and 10,478,149 shares outstanding at June 30,2026, March 31, 2026 and June 30, 2025, respectively		27,692			27,664			27,539
Treasury stock, at cost, 909,280, 729,873, and 538,972 at June 30, 2026,
March 31, 2026, and June 30, 2025, respectively		(35,114	)		(25,927	)		(17,167	)
Additional paid-in capital		181,107			180,132			178,553
Retained earnings		272,965			267,066			239,077
Accumulated other comprehensive loss		(23,371	)		(23,459	)		(32,851	)
Total Stockholders’ Equity		423,279			425,476			395,151
Total Liabilities and Stockholders’ Equity	$	3,318,863		$	3,269,864		$	3,259,528

                          

Consolidated Income Statements (Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands, except per share data)		2026			2025			2026			2025
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	37,883		$	36,555		$	74,185		$	68,231
Tax-exempt		349			317			687			609
Investment securities:
Taxable		4,343			3,283			8,584			6,185
Tax-exempt		320			283			634			571
Dividends		266			307			600			647
Other		524			831			1,227			1,623
Total Interest and Dividend Income		43,685			41,576			85,917			77,866
INTEREST EXPENSE
Deposits		6,614			7,284			13,001			13,280
Short-term borrowings		552			341			1,115			635
Long-term borrowings		2,517			2,939			5,284			5,849
Total Interest Expense		9,683			10,564			19,400			19,764
Net Interest Income		34,002			31,012			66,517			58,102
Provision for (reversal of) credit losses		554			(228	)		478			5,740
Reversal of provision for unfunded commitments		(107	)		(354	)		(120	)		(834	)
Net Interest Income after Provision for (Reversal of) Credit Losses and Unfunded Commitments		33,555			31,594			66,159			53,196
NONINTEREST INCOME
Insurance commissions		2,991			2,908			5,119			5,055
Gain from mortgage loans held for sale		1,463			1,575			2,689			2,430
Service charges on deposits		1,243			1,179			2,478			2,273
Wealth management		1,191			1,090			2,351			2,150
ATM debit card charges		933			905			1,839			1,736
Earnings on investment in bank-owned life insurance		756			627			1,493			1,207
Gain on assets held for sale		—			—			177			—
Gain on life insurance proceeds		—			31			174			285
Other		245			342			734			691
Net gains on sales or calls of investment securities		—			22			49			22
Net (losses) gains on equity securities		(4	)		3			(11	)		17
Total Noninterest Income		8,818			8,682			17,092			15,866
NONINTEREST EXPENSES
Salaries and employee benefits		13,761			13,693			27,788			26,554
Equipment		2,552			2,539			5,152			4,819
Net occupancy		1,209			1,277			2,742			2,719
Intangible assets amortization		1,028			1,141			2,084			1,998
Professional services		736			743			1,414			1,320
Other tax		317			220			894			747
FDIC and regulatory		459			435			901			836
Merger-related		—			1,943			—			9,974
Other		3,063			3,375			5,765			5,734
Total Noninterest Expenses		23,125			25,366			46,740			54,701
Income Before Income Taxes		19,248			14,910			36,511			14,361
Income tax expense		4,034			3,262			7,594			2,985
Net Income	$	15,214		$	11,648		$	28,917		$	11,376
PER SHARE DATA
Basic earnings	$	1.50		$	1.11		$	2.82		$	1.12
Diluted earnings	$	1.49		$	1.11		$	2.81		$	1.12
Weighted average shares basic		10,170,860			10,451,469			10,259,205			10,130,666
Weighted average shares diluted		10,212,225			10,487,519			10,288,802			10,157,331

 

Average Balances, Income and Expenses, Yields and Rates
	Three Months Ended									Three Months Ended									Three Months Ended									Three Months Ended									Three Months Ended
	June 30, 2026									March 31, 2026									December 31, 2025									September 30, 2025									June 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	$	2,345,905		$	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	%		$	2,296,429		$	36,555		6.38	%
Tax-exempt		55,382			442		3.20				56,344			428		3.08				58,740			434		2.93				58,587			410		2.78				58,903			401		2.73
Total Loans2		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				2,355,332			36,956		6.29
Investment Securities:
Taxable		490,321			4,609		3.77				494,221			4,575		3.75				480,987			3,900		3.22				485,309			3,762		3.08				482,933			3,590		2.98
Tax-exempt		55,946			405		2.90				56,036			397		2.87				54,518			376		2.74				53,165			356		2.66				54,261			358		2.65
Total Investments3		546,267			5,014		3.68				550,257			4,972		3.66				535,505			4,276		3.17				538,474			4,118		3.03				537,194			3,948		2.95
Interest-bearing deposits with banks		56,171			524		3.74				76,769			703		3.71				101,846			1,023		3.99				103,290			1,162		4.46				77,348			831		4.31
Total Earning Assets		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				2,969,874			41,735		5.64
Cash and due from banks		25,827									24,482									25,686									26,709									25,610
Premises and equipment		28,757									30,611									31,297									31,514									32,019
Other assets		254,925									249,769									250,508									245,899									255,624
Allowance for credit losses		(23,560	)								(23,682	)								(23,646	)								(24,312	)								(24,615	)
Total Assets	$	3,289,674								$	3,255,013								$	3,285,232								$	3,278,215								$	3,258,512
LIABILITIES
Interest-bearing demand deposits	$	650,258		$	595		0.37	%		$	616,311		$	460		0.30	%		$	633,593		$	545		0.34	%		$	616,565		$	570		0.37	%		$	612,812		$	514		0.34	%
Money markets		489,449			2,266		1.86				489,957			2,227		1.84				491,932			2,322		1.87				510,655			2,530		1.97				536,755			2,706		2.02
Savings deposits		335,451			26		0.03				335,398			26		0.03				331,309			27		0.03				335,083			26		0.03				342,327			27		0.03
Time deposits		476,319			3,727		3.14				472,621			3,674		3.15				454,083			3,653		3.19				454,625			3,746		3.27				473,589			4,037		3.42
Total Interest-Bearing Deposits		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				1,965,483			7,284		1.49
Short-term borrowings		73,266			552		3.02				74,562			563		3.06				69,326			491		2.81				70,389			513		2.89				44,515			341		3.07
Long-term borrowings		215,038			2,517		4.69				243,880			2,767		4.60				255,369			2,967		4.61				255,358			2,968		4.61				255,347			2,939		4.62
Total Borrowings		288,304			3,069		4.27				318,442			3,330		4.24				324,695			3,458		4.23				325,747			3,481		4.24				299,862			3,280		4.39
Total Interest-Bearing Liabilities		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				2,265,345			10,564		1.87
Noninterest-bearing demand deposits		583,453									554,591									592,956									593,800									563,321
Other liabilities		46,848									39,174									40,963									39,397									39,271
Stockholders’ Equity		419,592									428,519									415,701									402,343									390,575
Total Liabilities and Stockholders’ Equity	$	3,289,674								$	3,255,013								$	3,285,232								$	3,278,215								$	3,258,512
Taxable Equivalent Net Interest Income					34,180									32,688									33,021									32,298									31,171
Taxable Equivalent Adjustment					(178	)								(173	)								(170	)								(161	)								(159	)
Net Interest Income				$	34,002								$	32,515								$	32,851								$	32,137								$	31,012
Cost of Funds							1.38	%								1.41	%								1.40	%								1.45	%								1.50	%
FTE Net Interest Margin							4.56	%								4.46	%								4.36	%								4.27	%								4.21	%

^{_______________
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
	Six Months Ended June 30, 2026											Six Months Ended June 30, 2025
(Dollars in thousands)	Average Balance				Interest1				Yield/Rate			Average Balance				Interest1						Yield/Rate
ASSETS
Loans:
Taxable	$	2,318,337			$	74,185			6.45	%		$	2,188,852			$	68,231					6.29	%
Tax-exempt		55,860				870			3.14				58,438				771					2.66
Total Loans2		2,374,197				75,055			6.37				2,247,290				69,002					6.19
Investment Securities:
Taxable		492,260				9,184			3.76				465,556				6,832					2.96
Tax-exempt		55,991				803			2.89				54,459				723					2.68
Total Investments3		548,251				9,987			3.67				520,015				7,555					2.93
Interest-bearing deposits with banks		66,413				1,227			3.73				75,276				1,623					4.35
Total Earning Assets		2,988,861				86,269			5.82				2,842,581				78,180					5.55
Cash and due from banks		25,158											23,120
Premises and equipment		29,679											30,967
Other assets		252,362											240,235
Allowance for credit losses		(23,621	)										(22,290	)
Total Assets	$	3,272,439										$	3,114,613
LIABILITIES
Interest-bearing demand deposits	$	633,426			$	1,055			0.34	%		$	593,185					$	1,038			0.35	%
Money markets		489,702				4,493			1.85				492,273						4,690			1.92
Savings deposits		335,425				52			0.03				336,746						54			0.03
Time deposits		474,480				7,401			3.15				442,343						7,498			3.42
Total Interest-Bearing Deposits		1,933,033				13,001			1.36				1,864,547						13,280			1.44
Short-term borrowings		73,910				1,115			3.04				41,634						635			3.08
Long-term borrowings		229,379				5,284			4.65				256,447						5,849			4.60
Total Borrowings		303,289				6,399			4.25				298,081						6,484			4.39
Total Interest-Bearing Liabilities		2,236,322				19,400			1.75				2,162,628						19,764			1.84
Noninterest-bearing demand deposits		569,102											538,282
Other liabilities		42,984											38,109
Stockholders’ Equity		424,031											375,594
Total Liabilities and Stockholders’ Equity	$	3,272,439										$	3,114,613
Taxable Equivalent Net Interest Income						66,869													58,416
Taxable Equivalent Adjustment						(352	)												(314	)
Net Interest Income					$	66,517												$	58,102
Cost of Funds									1.39	%												1.48	%
FTE Net Interest Margin									4.51	%												4.14	%

_______________
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)	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Tangible book value per share
Stockholders’ equity	$	423,279		$	425,476		$	419,974		$	408,642		$	395,151
Less: Goodwill and intangible assets		(84,800	)		(85,828	)		(86,884	)		(88,014	)		(89,143	)
Tangible common stockholders’ equity (numerator)	$	338,479		$	339,648		$	333,090		$	320,628		$	306,008
Shares outstanding, less unvested shares, end of period (denominator)		10,128,565			10,296,825			10,337,757			10,387,135			10,442,269
Tangible book value per share	$	33.42		$	32.99		$	32.22		$	30.87		$	29.30
Tangible common equity to tangible assets (TCE/TA Ratio)
Tangible common stockholders’ equity (numerator)	$	338,479		$	339,648		$	333,090		$	320,628		$	306,008
Total assets	$	3,318,863		$	3,269,864		$	3,228,126		$	3,250,838		$	3,259,528
Less: Goodwill and intangible assets		(84,800	)		(85,828	)		(86,884	)		(88,014	)		(89,143	)
Total tangible assets (denominator)	$	3,234,063		$	3,184,036		$	3,141,242		$	3,162,824		$	3,170,385
Tangible common equity to tangible assets		10.47	%		10.67	%		10.60	%		10.14	%		9.65	%
Efficiency Ratio
Noninterest expense	$	23,125		$	23,615		$	23,453		$	22,361		$	25,366
Less: Intangible amortization		1,028			1,056			1,130			1,129			1,141
Less: Merger-related expense		—			—			575			169			1,943
Noninterest expense (numerator)	$	22,097		$	22,559		$	21,748		$	21,063		$	22,282
Net interest income	$	34,002		$	32,515		$	32,851		$	32,137		$	31,012
Plus: Total noninterest income		8,818			8,274			4,332			8,411			8,682
Less: Gain on assets held for sale		—			177			—			—			—
Less: Gain on life insurance proceeds		—			174			—			—			31
Less: Net gains (losses) on sales or calls of securities		—			49			(3,557	)		—			22
Less: Net (losses) gains on equity securities		(4	)		(7	)		4			9			3
Total revenue (denominator)	$	42,824		$	40,396		$	40,736		$	40,539		$	39,638
Efficiency ratio		51.60	%		55.84	%		53.39	%		51.96	%		56.21	%

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

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