ACNB CORP
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
ACNB$65.54+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001628280-25-038816
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001628280-25-050257
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 140 previous paragraphs and 135 current paragraphs.
83 unchanged; 48 reworded; 4 added; 7 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
◦The provision for credit losses was a reversal of $584 thousand and a provision of $5.2 million or the three and nine months ended September 30, 2025, respectively, compared to a provision of $81 thousand and a reversal of $2.7 million, respectively for the same periods of 2024. The reversal of the provisions for credit losses for the three months ended September 30, 2025 was driven primarily by the movement of construction loans, which are a higher loss rate segment, to lower loss rate segments within the loan portfolio and the paydowns of loans with a specific reserve. The provision for the nine months ended September 30, 2025 was driven primarily by the initial allowance for credit losses at the Acquisition date as discussed above.
Current report
The provision for credit losses and unfunded commitments were reversals of $584 thousand and $145 thousand, respectively, for the three months ended September 30, 2025 compared to provisions of $81 thousand and $40 thousand, respectively, for the same period of 2024. The reversal of the provision for credit losses for the three months ended September 30, 2025 was driven primarily by the movement of construction loans for completed projects, which are a higher loss rate segment, primarily to commercial real estate loans and other lower loss rate segments within the loan portfolio and the paydowns of loans with a specific reserve. The Corporation assesses risks and reserves required compared with the balances in the ACL and unfunded commitments quarterly.
Current report
Noninterest expenses increased $4.1 million for the three months ended September 30, 2025 compared to the same period of
Current report
Nine months ended September 30, 2025 compared to nine months ended September 30, 2024
Removed paragraphs (7)
Previous report
◦During the three months ended June 30, 2025, the Bank’s ACL model was updated to incorporate post-COVID data which resulted in lower loss rates utilized in the model. This model update resulted in reversals of the provision for credit losses and unfunded commitments of $228 thousand and $354 thousand, respectively, for the three months ended June 30, 2025. For the six months ended June 30, 2025, the provision for credit losses was $5.7 million and the provision for unfunded commitments was a reversal of $834 thousand.
Previous report
•Other tax decreased driven primarily by earned income tax credits recognized in the three months ended June 30, 2025.
Previous report
Six months ended June 30, 2025 compared to six months ended June 30, 2024
Previous report
Total noninterest income was $15.9 million for the six months ended June 30, 2025 compared to $12.1 million for the same period of 2024. The increase was driven primarily by the Acquisition unless noted otherwise in categories with significant variances below:
Previous report
•Insurance commissions increased compared to the same period of 2024 driven primarily by higher contingent income, growth in commissions on policy renewals and new business.
Previous report
•Wealth management income increased compared to the same period of 2024 driven primarily by portfolio market appreciation and new business generation.
Previous report
•FDIC and regulatory increased as a result of a higher FDIC assessment rate for 2025.
Reworded paragraphs (48)
Previous wording
ACNB Corporation is the financial holding company for the wholly-owned subsidiaries of ACNB Bank and ACNB Insurance Services. ACNB Bank provides a full range of retail and commercial financial services in Pennsylvania and Maryland primarily through its network of 33 community banking offices and a loan production office in Hunt Valley, Maryland. ACNB Insurance Services offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, Maryland, and Gettysburg, Pennsylvania and is licensed to do business in 46 states.
Current wording
ACNB Corporation is the financial holding company for the wholly-owned subsidiaries of ACNB Bank and ACNB Insurance Services. ACNB Bank provides a full range of retail and commercial financial services in Pennsylvania and Maryland primarily through its network of 33 community banking offices and a loan production office in Hunt Valley, Maryland. ACNB Insurance Services offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster, Maryland, and Gettysburg, Pennsylvania and is licensed to do business in 46 states.
Previous wording
ACNB closed the Acquisition of Traditions effective February 1, 2025. Traditions contributed, after acquisition accounting adjustments, $877.7 million in assets, $648.5 million in loans and $741.5 million in deposits at the Acquisition date. Financial results for the six months ended June 30, 2025 were impacted by two discrete items that were related to the Acquisition: a provision for credit losses on non-PCD loans of $4.2 million, net of taxes, and merger-related expenses, net of taxes, totaling $7.8 million.
Current wording
ACNB closed the Acquisition of Traditions effective February 1, 2025. Traditions contributed, after acquisition accounting adjustments, $877.7 million in assets, $648.5 million in loans and $741.5 million in deposits at the Acquisition date. Financial results for the nine months ended September 30, 2025 were impacted by two discrete items that were related to the Acquisition: a provision for credit losses on non-PCD loans of $4.2 million, net of taxes, and merger-related expenses, net of taxes, totaling $7.9 million.
Previous wording
•Net Interest Income —Net interest income was $31.0 million for the three months ended June 30, 2025 compared to $21.0 million for the same period of 2024, an increase of $10.0 million. For the six months ended June 30, 2025, net interest income was $58.1 million compared to $41.6 million for the same period of 2024. The increase in net interest income and growth in average loans and deposits was driven primarily by the Acquisition.
Current wording
•Net Interest Income —Net interest income was $32.1 million for the three months ended September 30, 2025 compared to $20.9 million for the same period of 2024, an increase of $11.2 million. For the nine months ended September 30, 2025, net interest income was $90.2 million compared to $62.5 million for the same period of 2024. The increase in net interest income and growth in average loans and deposits was driven primarily by the Acquisition.
Previous wording
◦Net Interest Margin —The Corporation’s FTE net interest margin increased to 4.21% for the three months ended June 30, 2025 compared to 3.82% in the same period of 2024, an increase of 39 bps. The FTE net interest margin for the six months ended June 30, 2025 was 4.14%, an increase of 35 bps from the same period of 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $2.2 million and $3.7 million for the three and six months ended June 30, 2025, respectively.
Current wording
◦Net Interest Margin —The Corporation’s FTE net interest margin increased to 4.27% for the three months ended September 30, 2025 compared to 3.77% in the same period of 2024, an increase of 50 bps. The FTE net interest margin for the nine months ended September 30, 2025 was 4.19%, an increase of 40 bps from the same period of 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $2.1 million and $5.8 million for the three and nine months ended September 30, 2025, respectively.
Previous wording
◦Yield on Average Earning Assets —For the three and six months ended June 30, 2025, the yield on average earning assets was 5.64% and 5.55%, respectively, an increase of 75 and 73 bps, respectively, compared to the same periods of 2024.
Current wording
◦Yield on Average Earning Assets —For the three and nine months ended September 30, 2025, the yield on average earning assets was 5.64% and 5.58%, respectively, an increase of 74 bps compared to both of the same periods of 2024.
Previous wording
◦Loan Growth —Average loans increased $678.7 million and $589.5 million for the three and six months ended June 30, 2025, respectively, compared to the same periods of 2024.
Current wording
◦Loan Growth —Average loans increased $675.4 million and $618.5 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024.
Previous wording
◦Deposit Growth —Average interest-bearing deposits increased $613.8 million and $518.4 million for the three and six months ended June 30, 2025, respectively, compared to the same periods of 2024.
Current wording
◦Deposit Growth —Average interest-bearing deposits increased $575.6 million and $537.6 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods of 2024.
Previous wording
•Asset Quality —The allowance for credit losses was $24.4 million at June 30, 2025 compared to $17.3 million at December 31, 2024. The increase was driven primarily by an initial allowance for credit losses of $5.5 million for non-PCD loans and $1.5 million for accruing PCD loans at the Acquisition date.
Current wording
•Asset Quality —The allowance for credit losses was $23.7 million at September 30, 2025 compared to $17.3 million at December 31, 2024. The increase was driven primarily by an initial allowance for credit losses of $5.5 million for non-PCD loans and $1.5 million for accruing PCD loans at the Acquisition date.
Previous wording
◦Non-performing loans were $10.1 million, or 0.43%, of total loans at June 30, 2025 compared to $3.1 million, or 0.19%, of total loans at June 30, 2024. The increase was driven primarily by one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during 2024 and by the Acquisition.
Current wording
◦Non-performing loans were $10.0 million, or 0.43%, of total loans at September 30, 2025 compared to $6.6 million, or 0.39%, of total loans at September 30, 2024. The increase was driven primarily by the Acquisition.
Previous wording
◦Annualized net charge-offs for both the three and six months ended June 30, 2025 were 0.01% of total average loans compared to 0.00% for both of the same periods of 2024.
Current wording
◦Annualized net charge-offs for the three and nine months ended September 30, 2025 were 0.02% and 0.01% of total average loans, respectively, compared to 0.01% for both of the same periods of 2024.
Previous wording
•Noninterest income —Noninterest income was $8.7 million and $15.9 million for the three and six months ended June 30, 2025, respectively, an increase of $2.3 million and $3.8 million, respectively, for the same periods of 2024. The increase for the three months ended June 30, 2025 was driven primarily by the Acquisition, and an increase in insurance commissions. In addition to those factors, the increase for the six months ended June 30, 2025 was also driven by higher wealth management income and a gain on life insurance proceeds.
Current wording
•Noninterest income —Noninterest income was $8.4 million and $24.3 million for the three and nine months ended September 30, 2025, respectively, an increase of $1.6 million and $5.4 million, respectively, for the same periods of 2024. The increase for the three months ended September 30, 2025 was driven primarily by the Acquisition. In addition to impact of the Acquisition, the increase for the nine months ended September 30, 2025 was also driven by a gain on life insurance proceeds.
Previous wording
•Noninterest expenses —Noninterest expense was $25.4 million and $54.7 million for the three and six months ended June 30, 2025, respectively, an increase of $9.0 million and $20.6 million, respectively, for the same periods of 2024. The increases were driven primarily by the Acquisition.
Current wording
•Noninterest expenses —Noninterest expense was $22.4 million and $77.1 million for the three and nine months ended September 30, 2025, respectively, an increase of $4.1 million and $24.8 million, respectively, for the same periods of 2024. The increases were driven primarily by the Acquisition.
Previous wording
Net income for the three months ended June 30, 2025 was $11.6 million, or $1.11 diluted earnings per share, compared to net income of $11.3 million, or $1.32 diluted earnings per share for the same period of 2024, an increase of $369 thousand, or $0.21 diluted earnings per share. The increase in net income was driven primarily by the Acquisition.
Current wording
Net income for the three months ended September 30, 2025 was $14.9 million, or $1.42 diluted earnings per share, compared to net income of $7.2 million, or $0.84 diluted earnings per share for the same period of 2024, an increase of $7.7 million, or $0.58 diluted earnings per share. The increase in net income was driven primarily by the Acquisition.
Previous wording
Net interest income totaled $31.0 million for the three months ended June 30, 2025 compared to $21.0 million for the same period of 2024, an increase of $10.0 million. The FTE net interest margin for the three months ended June 30, 2025 was 4.21%, a 39 bps increase from 3.82% for the same period of 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $2.2 million for the three months ended June 30, 2025. The Corporation manages the risk associated with changes in interest rates through the techniques described within Item 3, “Quantitative and Qualitative Disclosures About Market Risk” in this Quarterly Report on Form 10-Q.
Current wording
Net interest income totaled $32.1 million for the three months ended September 30, 2025 compared to $20.9 million for the same period of 2024, an increase of $11.2 million. The FTE net interest margin for the three months ended September 30, 2025 was 4.27%, a 50 bps increase from 3.77% for the same period of 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $2.1 million for the three months ended September 30, 2025. The Corporation manages the risk associated with changes in interest rates through the techniques described within Item 3, “Quantitative and Qualitative Disclosures About Market Risk” in this Quarterly Report on Form 10-Q.
Previous wording
Total FTE interest income increased $14.7 million during the three months ended June 30, 2025 compared to the same period of 2024. ACNB experienced a $10.2 million increase in FTE interest income due to an increase in the average balance of interest earning assets and $4.5 million attributable to an increase in the yield on interest earning assets. FTE interest income on total loans increased $13.9 million compared to the same period of 2024. Average loans increased $678.7 million contributing $9.6 million to the increase in FTE interest income. The yield on total loans increased 76 bps, contributing $4.3 million to the increase.
Current wording
Total FTE interest income increased $15.3 million during the three months ended September 30, 2025 compared to the same period of 2024. ACNB experienced a $10.7 million increase in FTE interest income due to an increase in the average balance of interest earning assets and $4.5 million attributable to an increase in the yield on interest earning assets. FTE interest income on total loans increased $13.9 million compared to the same period of 2024. Average loans increased $675.4 million contributing $9.7 million to the increase in FTE interest income. The yield on total loans increased 73 bps, contributing $4.2 million to the increase.
Previous wording
Total interest expense increased $4.7 million during the three months ended June 30, 2025 compared to the same period of 2024. Total average interest-bearing deposits increased $613.8 million for the three months ended June 30, 2025 compared to the same period of 2024. Interest expense increased $2.5 million due to higher rates on interest-bearing deposits and increased $2.2 million as a result of the increase in average interest-bearing deposits. The cost of interest-bearing deposits was 1.49% for the three months ended June 30, 2025, an increase of 70 bps from the same period of 2024. The largest increases in rates were in money markets and time deposits which increased 103 and 78 bps, respectively.
Current wording
Total interest expense increased $4.1 million during the three months ended September 30, 2025 compared to the same period of 2024. Total average interest-bearing deposits increased $575.6 million for the three months ended September 30, 2025 compared to the same period of 2024. Interest expense increased $1.5 million due to higher rates on interest-bearing deposits and increased $2.3 million as a result of the increase in average interest-bearing deposits. The cost of interest-bearing deposits was 1.42% for the three months ended September 30, 2025, an increase of 50 bps from the same period of 2024. Rates on money markets and time deposits increased 85 and 43 bps, respectively, partially offset by a decrease of 5 bps on the rate of interest-bearing demand deposits.
Previous wording
Total noninterest income was $8.7 million for the three months ended June 30, 2025 compared to $6.4 million for the same period of 2024. The increase was driven primarily by the Acquisition. The increase in insurance commissions was driven primarily by timing of policy renewals and new business.
Current wording
Total noninterest income was $8.4 million for the three months ended September 30, 2025 compared to $6.8 million for the same period of 2024. The increase was driven primarily by the Acquisition. The decrease in insurance commissions was driven primarily by timing of policy renewals and a decrease of $121 thousand from the cancellation of policies related to one customer.
Previous wording
Noninterest expenses increased $9.0 million for the three months ended June 30, 2025 compared to the same period of 2024 driven primarily by the Acquisition. The more significant fluctuations by category are explained below:
Current wording
2024 driven primarily by the Acquisition. The more significant fluctuations by category are explained below:
Previous wording
•Other increased $1.5 million driven primarily by the Acquisition, earned income tax related donations, and higher internet banking services.
Current wording
•Other increased $738 thousand driven primarily by the Acquisition and higher internet banking services.
Previous wording
The Corporation recognized income tax expense of $3.3 million during the three months ended June 30, 2025 compared to $3.0 million during the same period of 2024. The provision for income taxes for the three months ended June 30, 2025 reflects a combined Federal and State ETR of 21.9% compared to an ETR of 20.8% for the same period of the prior year. Any variances from the federal statutory rate of 21% are generally due to tax-free income, which includes, but not limited to, interest income on tax-free loans and investment securities and income from bank-owned life insurance policies, federal income tax credits, the impact of non-tax deductible expense and state taxes. Additionally, ACNB has incurred non-deductible costs related to the Acquisition which are recorded within merger-related expenses on the Consolidated Statements of Income.
Current wording
The Corporation recognized income tax expense of $4.0 million during the three months ended September 30, 2025 compared to $2.2 million during the same period of 2024. The provision for income taxes for the three months ended September 30, 2025 reflects a combined Federal and State ETR of 21.4% compared to an ETR of 23.4% for the same period of the prior year. Any variances from the federal statutory rate of 21% are generally due to tax-free income, which includes, but not limited to, interest income on tax-free loans and investment securities and income from bank-owned life insurance policies, federal income tax credits, the impact of non-tax deductible expenses and state taxes. Additionally, ACNB has incurred non-deductible costs related to the Acquisition which are recorded within merger-related expenses on the Consolidated Statements of Income.
Previous wording
Net income for the six months ended June 30, 2025 was $11.4 million, or $1.12 diluted earnings per share, compared to net income of $18.0 million, or $2.12 diluted earnings per share for the same period of 2024, a decrease of $6.7 million, or $1.00 diluted earnings per share. The decrease in net income for the six months ended June 30, 2025 was driven primarily by merger-related expenses, a higher provision for credit losses and higher noninterest expenses partially offset by an increase in net interest income and an increase in noninterest income compared to the same period of 2024.
Current wording
Net income for the nine months ended September 30, 2025 was $26.2 million, or $2.56 diluted earnings per share, compared to net income of $25.3 million, or $2.96 diluted earnings per share for the same period of 2024, an increase of $1.0 million and a decrease of $0.40 diluted earnings per share. The increase in net income for the nine months ended September 30, 2025 was driven primarily by increases in net interest income, gain from mortgage loans held for sale, and service charges on deposits primarily due to the Acquisition, partially offset by a higher provision for credit losses, higher merger-related expenses, and higher salaries and employee benefits expenses and other noninterest expenses compared to the same period of 2024.
Previous wording
Net interest income totaled $58.1 million for the six months ended June 30, 2025 compared to $41.6 million for the same period of 2024, an increase of $16.5 million. The FTE net interest margin for the six months ended June 30, 2025 was 4.14%, a 35 bps increase from 3.79% for the same period of 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $3.7 million for the six months ended June 30, 2025.
Current wording
Net interest income totaled $90.2 million for the nine months ended September 30, 2025 compared to $62.5 million for the same period of 2024, an increase of $27.7 million. The FTE net interest margin for the nine months ended September 30, 2025 was 4.19%, a 40 bps increase from 3.79% for the same period of 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $5.8 million for the nine months ended September 30, 2025.
Previous wording
The following table analyzes the relative impact on FTE net interest income attributed to changes in the volume of interest-earning assets and interest-bearing liabilities and changes in yields and rates for thesix months ended June 30, 2025 compared to thesame period of 2024:
Current wording
The following table analyzes the relative impact on FTE net interest income attributed to changes in the volume of interest-earning assets and interest-bearing liabilities and changes in yields and rates for thenine months ended September 30, 2025 compared to thesame period of 2024:
Previous wording
Total FTE interest income increased $25.0 million during the six months ended June 30, 2025 compared to the same period of 2024. ACNB experienced a $17.1 million increase in FTE interest income due to an increase in the average balance of interest earning assets and $7.9 million attributable to an increase in the yield on interest earning assets. FTE interest income on total loans increased $24.1 million compared to the same period of 2024. Average loans increased $589.5 million contributing $16.4 million to the increase in FTE interest income. The yield on total loans increased 74 bps, contributing $7.7 million to the increase.
Current wording
Total FTE interest income increased $40.3 million during the nine months ended September 30, 2025 compared to the same period of 2024. Of the $40.3 million increase, $27.9 million was attributable to an increase in the average balance of interest earning assets and $12.4 million attributable to an increase in the yield on interest earning assets. FTE interest income on total loans increased $37.9 million compared to the same period of 2024. Average loans increased $618.5 million contributing $26.1 million to the increase in FTE interest income. The yield on total loans increased 74 bps, contributing $11.8 million to the increase.
Previous wording
Total interest expense increased $8.5 million during the six months ended June 30, 2025 compared to the same period of 2024. Total average interest-bearing deposits increased $518.4 million for the six months ended June 30, 2025 compared to the same period of 2024. Interest expense increased $5.0 million due to higher rates on interest-bearing deposits as a result of the Acquisition and increased $3.5 million as a result of the increase in average interest-bearing deposits. The average cost of interest-bearing deposits was 1.44% for the six months ended June 30, 2025, an increase of 72 bps compared to the same period of 2024. The largest increases in rates were in time deposits and money markets which increased 100 and 99 bps, respectively.
Current wording
Total interest expense increased $12.5 million during the nine months ended September 30, 2025 compared to the same period of 2024. Total average interest-bearing deposits increased $537.6 million for the nine months ended September 30, 2025 compared to the same period of 2024. Interest expense increased $6.5 million due to higher rates on interest-bearing deposits as a result of the Acquisition and increased $5.7 million as a result of the increase in average interest-bearing deposits. The average cost of interest-bearing deposits was 1.43% for the nine months ended September 30, 2025, an increase of 64 bps compared to the same period of 2024. The largest increases in rates were in money markets and time deposits which increased 95 and 81 bps, respectively.
Previous wording
During the six months ended June 30, 2025, the provision for credit losses was $5.7 million and the provision for unfunded commitments was a reversal of $834 thousand compared to reversals of both the provision for credit losses and the provision for unfunded commitments of $2.8 million and $410 thousand, respectively, for the same period of 2024. In 2025, ACNB recorded an allowance for credit losses of $6.9 million at the Acquisition date, comprised of $5.5 million for non-PCD loans, which was recognized through the provision for credit losses, and $1.5 million for accruing PCD loans, which was recognized as an acquisition accounting adjustment to the amortized cost basis of the acquired loans. The reversal of the provision for unfunded commitments was impacted by the incorporation of post-COVID data which resulted in lower loss rates utilized within the Bank’s ACL model. During the three months ended June 30, 2024, the reversals of both the provision for credit losses and the provision for unfunded commitments were a result of the Corporation’s revision to estimates driven by a realignment of the peer group used for the CECL allowance process, an update to loss driver factors from third-party data, and an update to the application of prepayment and curtailment rate studies since implementation of CECL on January 1, 2023. These estimates, which were based on more current information available as of June 30, 2024, drive input assumptions which are used in the determination of the Corporation’s allowance for credit losses and the reserve for unfunded commitments. These updated estimates were the primary drivers for the reversal of the provision for credit losses and unfunded commitments for the six months ended June 30, 2024. The Corporation assesses risks and reserves required compared with the balances in the ACL and unfunded commitments quarterly.
Current wording
During the nine months ended September 30, 2025, the provision for credit losses was $5.2 million and the provision for unfunded commitments was a reversal of $979 thousand compared to reversals of both the provision for credit losses and the provision for unfunded commitments of $2.7 million and $370 thousand, respectively, for the same period of 2024. In 2025, ACNB recorded an allowance for credit losses of $6.9 million at the Acquisition date, comprised of $5.5 million for non-PCD loans, which was recognized through the provision for credit losses, and $1.5 million for accruing PCD loans, which was recognized as an acquisition accounting adjustment to the amortized cost basis of the acquired loans. The reversal of the provision for unfunded commitments was impacted by the incorporation of post-COVID data which resulted in lower loss rates utilized within the Bank’s ACL model. During the nine months ended September 30, 2024, the reversals of both the provision for credit losses and the provision for unfunded commitments were a result of the Corporation’s revision to estimates driven by a realignment of the peer group used for the CECL allowance process, an update to loss driver factors from third-party data, and an update to the application of prepayment and curtailment rate studies since implementation of CECL on January 1, 2023. These estimates, which were based on more current information available as of June 30, 2024, drive input assumptions which are used in the determination of the Corporation’s allowance for credit losses and the reserve for unfunded commitments. These updated estimates were the primary drivers for the reversal of the provision for credit losses and unfunded commitments for the nine months ended September 30, 2024. The Corporation assesses risks and reserves required compared with the balances in the ACL and unfunded commitments quarterly.
Previous wording
•Gain on life insurance proceeds for the six months ended June 30, 2025 was a result of a death benefit received on a life insurance policy.
Current wording
Total noninterest income was $24.3 million for the nine months ended September 30, 2025 compared to $18.9 million for the same period of 2024. The increases were driven primarily by the Acquisition and changes to customer products. Gain on life insurance proceeds for the nine months ended September 30, 2025 was a result of a death benefit received on a life insurance policy.
Previous wording
Noninterest expenses increased $20.6 million during the six months ended June 30, 2025 compared to the same period of 2024 driven primarily by the Acquisition. The more significant fluctuations by category explained below:
Current wording
Noninterest expenses increased $24.8 million during the nine months ended September 30, 2025 compared to the same period of 2024 driven primarily by the Acquisition. The more significant fluctuations by category explained below:
Previous wording
•Salaries and employee benefits, the largest component of noninterest expenses, increase was driven primarily by an increased number of employees attributable to the Acquisition, merit increases, higher mortgage commissions, and higher employee benefits.
Current wording
•Salaries and employee benefits, the largest component of noninterest expenses, increased driven primarily by an increased number of employees attributable to the Acquisition, merit increases and higher mortgage commissions.
Previous wording
•Professional services increases were driven primarily by higher expenses related to loan review and rate studies, external, internal audit and collection fees.
Current wording
•Professional services increases were driven primarily by timing of expenses, collection fees, higher audit fees, Acquisition-related expenses and expenses related to loan review and rate studies.
Previous wording
The Corporation recognized income taxes of $3.0 million for the six months ended June 30, 2025 compared to $4.7 million during the same period of 2024. The provision for income taxes for the six months ended June 30, 2025 and for the same period of 2024 reflects a combined Federal and State ETR of 20.8%. Any variances from the federal statutory rate of 21% are generally due to tax-free income, which includes, but not limited to, interest income on tax-free loans and investment securities and income from bank-owned life insurance policies, federal income tax credits, the impact of non-tax deductible expense and state taxes. Additionally, ACNB has incurred non-deductible costs related to the Acquisition which are recorded within merger-related expenses on the Consolidated Statements of Income.
Current wording
The Corporation recognized income taxes of $7.0 million for the nine months ended September 30, 2025 compared to $6.9 million during the same period of 2024. The provision for income taxes for the nine months ended September 30, 2025 reflects a combined Federal and State ETR of 21.1% compared to an ETR of 21.5% for the same period of 2024. Any variances from the federal statutory rate of 21% are generally due to tax-free income, which includes, but not limited to, interest income on tax-free loans and investment securities and income from bank-owned life insurance policies, federal income tax credits, the impact of non-tax deductible expenses, and state taxes. Additionally, ACNB has incurred non-deductible costs related to the Acquisition which are recorded within merger-related expenses on the Consolidated Statements of Income.
Previous wording
Assets totaled $3.26 billion at June 30, 2025 and $2.39 billion at December 31, 2024. The Acquisition contributed $877.7 million to total assets.
Current wording
Assets totaled $3.25 billion at September 30, 2025 and $2.39 billion at December 31, 2024. The Acquisition contributed $877.7 million to total assets.
Previous wording
Total investment securities were $520.8 million at June 30, 2025 compared to $459.5 million at December 31, 2024, an increase of 13.3%. Following the Acquisition date, ACNB completed the sale of approximately $98.0 million of investment securities previously held by Traditions with a yield of 5.03%. ACNB paid off $40.2 million of Traditions’ FHLB borrowings with a cost of 4.73% with the proceeds from the sale of the investment securities, and invested the remainder of the proceeds into investment securities with a yield of 5.07%. At June 30, 2025, the securities balance included a net unrealized loss on AFS securities of $29.3 million on amortized cost of $491.5 million compared to a net unrealized loss of $38.2 million on amortized cost of $441.6 million at December 31, 2024. At June 30, 2025, the securities balance included HTM securities with an amortized cost of $64.5 million and a fair value of $56.4 million as compared to an amortized cost of $64.6 million and a fair value of $56.9 million at December 31, 2024.
Current wording
Total investment securities were $526.6 million at September 30, 2025 compared to $459.5 million at December 31, 2024, an increase of 14.6%. Following the Acquisition date, ACNB completed the sale of approximately $98.0 million of investment securities previously held by Traditions with a yield of 5.03%. ACNB paid off $40.2 million of Traditions’ FHLB borrowings with a cost of 4.73% with the proceeds from the sale of the investment securities, and invested the remainder of the proceeds into investment securities with a yield of 5.07%. At September 30, 2025, the securities balance included a net unrealized loss on AFS securities of $31.0 million on amortized cost of $493.3 million compared to a net unrealized loss of $47.7 million on amortized cost of $441.6 million at December 31, 2024. At September 30, 2025, the securities balance included HTM securities with an amortized cost of $63.4 million and a fair value of $56.9 million as compared to an amortized cost of $64.6 million and a fair value of $56.9 million at December 31, 2024.
Previous wording
Total loans, net of unearned income, outstanding increased $658.9 million, or 39.2%, from December 31, 2024 to June 30, 2025. The increase was driven primarily by the Acquisition. ACNB acquired $648.5 million in loans at the Acquisition date. Total acquisition accounting adjustments on loans were $22.2 million at June 30, 2025. The majority of the loan acquisition accounting adjustments are expected to accrete back through as income as loans pay off or mature. ACNB does not have a significant concentration of credit risk with any single borrower, industry or geographic location. Most of the Corporation’s lending activities are with customers located within the Bank’s Market Area.
Current wording
Total loans, net of unearned income, outstanding increased $653.7 million, or 38.8%, from December 31, 2024 to September 30, 2025. The increase was driven primarily by the $648.5 million in loans purchased at the Acquisition date. Total acquisition accounting adjustments on loans were $20.1 million at September 30, 2025. The majority of the loan acquisition accounting adjustments are expected to accrete back through as income as loans pay off or mature. ACNB does not have a significant concentration of credit risk with any single borrower, industry or geographic location. Most of the Corporation’s lending activities are with customers located within the Bank’s Market Area.
Previous wording
The commercial real estate portfolio, which includes farmland, multifamily, owner-occupied and non-owner occupied commercial real-estate, grew $285.2 million, or 29.4%, compared to December 31, 2024. The following data related to the commercial real estate portfolio through the breakout charts excludes the impact of the acquisition accounting adjustments on loans. The collateral for these loans is primarily spread across Pennsylvania and Maryland, 65.2% and 32.4%, respectively, at June 30, 2025, compared to 56.0% and 42.1%, respectively, at December 31, 2024. Less than 3% of the portfolio is for real estate in Urban areas of Baltimore, Maryland and Philadelphia, Pennsylvania. The largest sectors of the commercial real estate portfolio are retail and mixed-use commercial rental units, office complexes and hotels, motels and bed and breakfast entities. Non-owner occupied commercial real estate represented 65.5% of the commercial real estate portfolio. Non-owner occupied commercial real estate borrowers are geographically dispersed throughout ACNB’s Market Area and are leasing commercial properties to a varied group of tenants including medical offices, retail space, and other commercial purpose facilities. Because of the varied nature of the tenants, in aggregate, management believes that these loans present an acceptable risk when compared to commercial loans in general.
Current wording
The commercial real estate portfolio, which includes farmland, multifamily, owner-occupied and non-owner occupied commercial real-estate, grew $294.4 million, or 30.4%, compared to December 31, 2024. The following data related to the commercial real estate portfolio through the breakout charts excludes the impact of the acquisition accounting adjustments on loans. The collateral for these loans is primarily spread across Pennsylvania and Maryland, 65.7% and 32.0%, respectively, at September 30, 2025, compared to 56.0% and 42.1%, respectively, at December 31, 2024. Less than 3% of the portfolio is for real estate in Urban areas of Baltimore, Maryland and Philadelphia, Pennsylvania. The largest sectors of the commercial real estate portfolio are retail and mixed-use commercial rental units, office complexes and hotels, motels and bed and breakfast entities. Non-owner occupied commercial real estate represented 65.6% of the commercial real estate portfolio. Non-owner occupied commercial real estate borrowers are geographically dispersed throughout ACNB’s Market Area and are leasing commercial properties to a varied group of tenants including medical offices, retail space, and other commercial purpose facilities. Because of the varied nature of the tenants, in aggregate, management believes that these loans present an acceptable risk when compared to commercial loans in general.
Previous wording
The concentration of non-owner occupied commercial real estate, construction, and multi-family was 250.7% of total risk-based capital of the Bank as of June 30, 2025 compared to 207.0% of total risk-based capital of the Bank as of December 31, 2024. The increase was primarily a result of the addition of Traditions’ portfolio.
Current wording
The concentration of non-owner occupied commercial real estate, construction, and multi-family was 242.9% of total risk-based capital of the Bank as of September 30, 2025 compared to 207.0% of total risk-based capital of the Bank as of December 31, 2024. The increase was primarily a result of the addition of Traditions’ portfolio.
Previous wording
Residential real estate mortgages totaled $594.9 million, an increase of $192.9 million, or 48.0%, compared to December 31, 2024. Included in the residential real estate mortgages are $214.4 million of commercial loans and $66.6 million of consumer loans secured by residential real estate mortgages. Total residential real estate mortgages include $53.5 million in junior liens. Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a senior security position in the case of foreclosure liquidation of collateral to extinguish the debt.
Current wording
Residential real estate mortgages totaled $593.3 million, an increase of $191.3 million, or 47.6%, compared to December 31, 2024. Included in the residential real estate mortgages are $217.3 million of commercial loans and $64.0 million of consumer loans secured by residential real estate mortgages. Total residential real estate mortgages include $52.0 million in junior liens. Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a senior security position in the case of foreclosure liquidation of collateral to extinguish the debt.
Previous wording
Commercial and industrial loans totaled $226.3 million, an increase of $85.4 million, or 60.6% compared to December 31, 2024. This segment includes loans to school districts, municipalities (including townships) and essential purpose authorities. In many cases, these loans are obtained through a bid process that includes other local and regional banks and are especially subject to refinancing in certain rate environments.
Current wording
Commercial and industrial loans totaled $218.4 million, an increase of $77.5 million, or 55.0% compared to December 31, 2024. This segment includes loans to school districts, municipalities (including townships) and essential purpose authorities. In many cases, these loans are obtained through a bid process that includes other local and regional banks and are especially subject to refinancing in certain rate environments.
Previous wording
The ACL at June 30, 2025 was $24.4 million, or 1.04% of total loans, net of unearned income as compared to $17.3 million, or 1.03% of loans, at December 31, 2024 and $17.2 million, or 1.02% of loans, at June 30, 2024. The increases of $7.1 million compared to December 31, 2024 and $7.2 million compared to June 30, 2024 were driven primarily by an initial $5.5 million ACL for non-PCD loans, which was recognized through the provision for credit losses, and a $1.5 million ACL for accruing PCD loans, which was recognized as an acquisition accounting adjustment to the amortized cost basis of the acquired loans, at the Acquisition date.
Current wording
The ACL at September 30, 2025 was $23.7 million, or 1.01% of total loans, net of unearned income as compared to $17.3 million, or 1.03% of loans, at December 31, 2024 and $17.2 million, or 1.03% of loans, at September 30, 2024. The increases of $6.4 million compared to December 31, 2024 and $6.4 million compared to September 30, 2024 were driven primarily by an initial $5.5 million ACL for non-PCD loans, which was recognized through the provision for credit losses, and a $1.5 million ACL for accruing PCD loans, which was recognized as an acquisition accounting adjustment to the amortized cost basis of the acquired loans, at the Acquisition date.
Previous wording
Nonaccrual loans increased $1.8 million from December 31, 2024 to June 30, 2025 driven primarily by the Acquisition. All nonaccrual loans are to borrowers located within ACNB’s Market Area and were originated by ACNB’s banking subsidiary or were part of the Acquisition and were originated by Traditions’ banking subsidiary.
Current wording
Nonaccrual loans increased $1.2 million from December 31, 2024 to September 30, 2025 driven primarily by the Acquisition. All nonaccrual loans are to borrowers located within ACNB’s Market Area and were originated by ACNB’s banking subsidiary or were part of the Acquisition and were originated by Traditions’ banking subsidiary.
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Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The provision for credit losses and unfunded commitments were reversals of $228 thousand and $354 thousand, respectively, for the three months ended June 30, 2025 compared to reversals of $3.0 million and $259 thousand, respectively, for the same period of 2024. The reversals of the provisions for credit losses and unfunded commitments for the three months ended June 30, 2025 were driven primarily by the incorporation of post-COVID data which resulted in lower loss rates utilized within the Bank’s ACL model. During the three months ended June 30, 2024, the Corporation revised estimates driven by a realignment of the peer group used for the CECL allowance process, an update to loss driver factors from third-party data, and an update to the application of prepayment and curtailment rate studies since implementation of CECL on January 1, 2023. These estimates, which were based on more current information available as of June 30, 2024, drive input assumptions which are used in the determination of the Corporation’s allowance for credit losses and the reserve for unfunded commitments. These updated estimates were the primary drivers for the reversal of the provision for credit losses and unfunded commitments for the three months ended June 30, 2024. The Corporation assesses risks and reserves required compared with the balances in the ACL and unfunded commitments quarterly.
Previous report — wording carried elsewhere
•Equipment expense increase was driven primarily by the Acquisition and the implementation of new additional products into the core processing system.