ACNB CORP

Previous wording

Financial results for the three months ended March 31, 2025 were impacted by two discrete items that were related to the Acquisition of Traditions Bancorp, Inc. which was completed on February 1, 2025: a provision for credit losses on non-PCD loans of $4.2 million, net of taxes, and merger-related expenses, net of taxes, totaling $6.2 million. Financial results for the three months ended March 31, 2025 include ACNB’s standalone results for the month of January 2025.

Current wording

Financial results for the six months ended June 30, 2025 were impacted by two discrete items that were related to the Acquisition of Traditions Bancorp, Inc. which was completed on February 1, 2025: a provision for credit losses on non-PCD loans of $4.2 million, net of taxes, and merger-related expenses totaling $7.8 million, net of taxes. Financial results for the six months ended June 30, 2025 include ACNB’s standalone results for the month of January 2025.

Previous wording

•Net Interest Income —Net interest income was $32.5 million for the three months ended March 31, 2026 compared to $27.1 million for the same period of 2025, an increase of $5.4 million. The increase in net interest income was driven primarily by the balance sheet restructuring completed during the three months ended December 31, 2025, the Acquisition, and new loans and securities funded during the quarter at higher rates than those that paid off or matured.

Current wording

•Net Interest Income —Net interest income was $34.0 million for the three months ended June 30, 2026 compared to $31.0 million for the same period of 2025, an increase of $3.0 million. For the six months ended June 30, 2026, net interest income was $66.5 million compared to $58.1 million for the same period of 2025. The increase in net interest income was 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 six months ended June 30, 2026 compared to the same period in the prior year was impacted by a repositioning of the investment securities portfolio completed during the three months ended December 31, 2025.

Previous wording

◦Net Interest Margin —FTE net interest margin increased to 4.46% for the three months ended March 31, 2026 compared to 4.07% in the same period of 2025, an increase of 39 bps. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.9 million for the three months ended March 31, 2026 compared to $1.5 million for the same period of 2025

Current wording

◦Net Interest Margin —FTE net interest margin increased to 4.56% for the three months ended June 30, 2026 compared to 4.21% in the same period of 2025, an increase of 35 bps. FTE net interest margin increased to 4.51% for the six months ended June 30, 2026 compared to 4.14% in the same period of 2025, an increase of 37 bps. The accretion impact of acquisition accounting adjustments on loans and deposits from the

Previous wording

◦Deposit Growth —Average interest-bearing deposits increased $151.8 million for the three months ended March 31, 2026 compared to the same period of 2025, driven primarily by the Acquisition and, to a lesser extent, promotional incentives on commercial checking accounts

Current wording

◦Deposit Growth —Average noninterest-bearing deposits increased $20.1 million and $30.8 million for the three and six months ended June 30, 2026, respectively, compared to same periods of 2025 driven primarily by promotional incentives on commercial checking accounts and the Acquisition. Average interest-bearing deposits decreased $14.0 million, for three months ended June 30, 2026 primarily as a result of attrition of higher cost money market deposits from the Acquisition. Average interest-bearing deposits increased $68.5 million for the six months ended June 30, 2026 compared to the same period of 2025 driven primarily by the timing of the Acquisition.

Previous wording

◦Yield on Average Earning Assets —For the three months ended March 31, 2026, the yield on average earning assets was 5.78%, an increase of 33 bps compared to the same period of 2025

Current wording

◦Yield on Average Earning Assets —For the three and six months ended June 30, 2026, the yields on average earning assets were 5.86% and 5.82%, respectively, an increase of 22 and 27 bps compared to the same periods of 2025.

Previous wording

◦Rate on Average Interest-bearing Liabilities —For the three months ended March 31, 2026, the rate on average interest-bearing liabilities was 1.77%, a decrease of 4 bps compared to the same period of 2025

Current wording

◦Rate on Average Interest-bearing Liabilities —For the three and six months ended June 30, 2026, the rates on average interest-bearing liabilities were 1.73% and 1.75%, respectively, a decrease of 14 and 9 bps, respectively, compared to the same periods of 2025.

Previous wording

•Asset Quality —The allowance for credit losses was $23.6 million at March 31, 2026, compared to $23.7 million at December 31, 2025

Current wording

•Asset Quality —The allowance for credit losses was $24.0 million at June 30, 2026, compared to $23.7 million at December 31, 2025. The increase was driven primarily by loan growth.

Previous wording

◦Annualized net recoveries for the three months ended March 31, 2026 were 0.00% of total average loans outstanding, compared to net charge-offs of 0.01% for the same period of 2025

Current wording

◦Annualized net charge-offs to total average loans outstanding for the three and six months ended June 30, 2026 were 0.03% and 0.01%, respectively, compared to 0.01% for both of the same periods of 2025.

Previous wording

◦Non-performing loans were $9.6 million, or 0.41%, of total loans at March 31, 2026 compared to $10.0 million, or 0.43%, of total loans at March 31, 2025. The decrease was driven primarily by paydowns of loans

Current wording

◦Non-performing loans were $9.8 million, or 0.41%, of total loans at June 30, 2026 compared to $10.1 million, or 0.43%, of total loans at June 30, 2025. The decrease was driven primarily by charge-offs, the movement of several loans to foreclosed assets held for resale and paydowns.

Previous wording

•Noninterest income —Noninterest income was $8.3 million for the three months ended March 31, 2026, an increase of $1.1 million for the same period of 2025. The increase for the three months ended March 31, 2026 was driven primarily by the Acquisition. In addition to impact of the Acquisition, the increase for the three months ended March 31, 2026 was also driven primarily by a gain on an asset held for sale, earnings on investment in bank-owned life insurance, other, and wealth management

Current wording

•Noninterest income —Noninterest income was $8.8 million and $17.1 million for the three and six months ended June 30, 2026, respectively, an increase of $136 thousand and $1.2 million, respectively, for the same periods of 2025. The increase for the three months ended June 30, 2026 was driven primarily by higher wealth management income and higher earnings on investment in bank-owned life insurance, partially offset by lower other income due to lower credit card processing and letter of credit fees. In addition to the impact of the Acquisition, the increase for the six months ended June 30, 2026 compared to the same period of 2025 was driven primarily by higher wealth management income, gain on assets HFS and earnings on investment in bank-owned life insurance.

Previous wording

•Noninterest expenses —Noninterest expense was $23.6 million for the three months ended March 31, 2026, a decrease of $5.7 million for the same period of 2025. The decrease was driven primarily by merger-related expenses due to the Acquisition during the three months ended March 31, 2025

Current wording

•Noninterest expenses —Noninterest expense was $23.1 million and $46.7 million for the three and six months ended June 30, 2026, a decrease of $2.2 million and $8.0 million for the same periods of 2025, respectively. The decrease was driven primarily by merger-related expenses due to the Acquisition during the three and six months ended June 30, 2025.

Previous wording

Allowance for Credit Losses — The ACL represents an amount which, in management’s judgment, is adequate to absorb expected credit losses on outstanding loans at the balance sheet date based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (reversal of) credit losses, which is recorded as a current period operating expense.

Current wording

Allowance for Credit Losses — The ACL represents an amount which, in management’s judgment, is adequate to absorb expected credit losses on outstanding loans at the balance sheet date based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience. The ACL is measured and recorded upon the initial recognition of a financial asset. The

Previous wording

Net interest income totaled $32.5 million for the three months ended March 31, 2026 compared to $27.1 million for the same period of 2025, an increase of $5.4 million. The FTE net interest margin for the three months ended March 31, 2026 was 4.46%, a 39 bps increase from 4.07% for the same period of 2025. The increase in net interest income and FTE net interest margin was driven primarily by the repositioning of the investment securities portfolio as announced on Form 8-K on December 5, 2025, the Acquisition, and new loans and investment securities funded at higher rates than those that paid off or matured. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.9 million for the three months ended March 31, 2026. 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 $34.0 million for the three months ended June 30, 2026 compared to $31.0 million for the same period of 2025, an increase of $3.0 million. The FTE net interest margin for the three months ended June 30, 2026 was 4.56%, a 35 bps increase from 4.21% for the same period of 2025. The increase in net interest income and FTE net interest margin was driven primarily by loan growth, new loans and investment securities funded 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. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.8 million and $2.2 million for the three months ended June 30, 2026 and 2025, respectively. 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 $6.0 million during the three months ended March 31, 2026 compared to the same period of 2025, driven primarily by higher average balances of interest earning assets due to the timing of the Acquisition and, to a lesser extent, organic growth. Also contributing to the increase was an increase in yield of interest earning assets, which was driven primarily by the repositioning of the investment securities portfolio, as well as new loans and investment securities funded at higher rates than those that paid off or matured.

Current wording

Total FTE interest income increased $2.1 million during the three months ended June 30, 2026 compared to the same period of 2025, driven primarily by an increase in yield of interest earning assets, which was driven primarily by the repositioning of the investment securities portfolio, as well as new loans and investment securities funded at higher rates than those that paid off or matured. Also contributing to the increase was growth of $46.0 million in average loan balances primarily in the commercial real estate portfolio.

Previous wording

Total noninterest income was $8.3 million for the three months ended March 31, 2026 compared to $7.2 million for the same period of 2025. The increase was driven primarily by the Acquisition. The more significant variations by category that were not solely a direct result of the Acquisition are explained below:

Current wording

The more significant variations by category:

Previous wording

•The increase in wealth management was driven primarily by growth of fee-based assets under management/administration

Current wording

•The increase in wealth management was driven primarily by assets under management growth due to new business generation and positive market impacts

Previous wording

•The increase in earnings on investment in bank-owned life insurance was driven primarily by the purchase of new policies in the third quarter of 2025 and the Acquisition

Current wording

•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

Previous wording

The Corporation recognized income tax expense of $3.6 million during the three months ended March 31, 2026 compared to an income tax benefit of $277 thousand during the same period of 2025. The provision for income taxes for the three months ended March 31, 2026 reflects a combined Federal and State ETR of 20.6%. The income tax benefit for the three months ended March 31, 2025 was due to the net loss driven by the Acquisition. The 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 such as certain merger-related costs and state taxes.

Current wording

The Corporation recognized income tax expense of $4.0 million during the three months ended June 30, 2026 compared to $3.3 million during the same period of 2025. The provision for income taxes reflects a combined Federal and State ETR of 21.0% and 21.9% for the three months ended June 30, 2026 and 2025, respectively. The 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 and the impact of non-tax deductible expenses such as certain merger-related costs and state taxes.

Previous wording

Net income for the three months ended March 31, 2026 was $13.7 million, or $1.32 diluted earnings per share, compared to net loss of $272 thousand, or $0.03 diluted loss per share for the same period of 2025, an increase of $14.0 million, or $1.35 diluted earnings per share. The financial results for the three months ended March 31, 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 $6.2 million. Financial results for the three months ended March 31, 2025 include ACNB’s standalone results for the month of January 2025.

Current wording

Net income for the six months ended June 30, 2026 was $28.9 million, or $2.81 diluted earnings per share, compared to net income of $11.4 million, or $1.12 diluted earnings per share for the same period of 2025, an increase of $17.5 million and $1.69 diluted earnings per share. The increase in net income for the six months ended June 30, 2026 was driven primarily by higher net interest income and the impact of two discrete items for the six months ended June 30, 2025 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 totaling $7.8 million, net of taxes. Financial results for the six months ended June 30, 2025 include ACNB’s standalone results for the month of January 2025.

Previous wording

The provisions for credit losses and unfunded commitments were reversals of $76 thousand and $13 thousand, respectively, for the three months ended March 31, 2026 compared to a provision for credit losses of $6.0 million and a reversal of the provision for unfunded commitments of $480 thousand for the same period of 2025. The reversal of the provision for credit losses for the three months ended March 31, 2026 was driven primarily by the paydowns of loans with a specific reserve and the movement of construction loans for completed projects, which are a higher loss rate segment, to lower loss rate segments within the loan portfolio, primarily commercial real estate, partially offset by loan growth. The provision for credit losses for the three months ended March 31, 2025 was driven primarily by the Acquisition. The Corporation assesses risks and reserves required compared with the balances in the ACL and unfunded commitments quarterly.

Current wording

The provision for credit losses was $478 thousand for the six months ended June 30, 2026 compared to $5.7 million for the same period of 2025. The 2025 provision expense was primarily driven by a provision for credit losses of $5.5 million for acquired non-PCD loans, and the provision for 2026 was driven primarily by organic loan growth. The provision for unfunded commitments was a reversal of $120 thousand compared to a reversal of $834 thousand for the same period of 2025. The reversal of the provision for unfunded commitments for the six months ended June 30, 2025 was impacted by the incorporation of post-COVID data which resulted in lower loss rates utilized within the Bank’s ACL model. The Corporation assesses risks and reserves required compared with the balances in the ACL and unfunded commitments on a quarterly basis.

Previous wording

•The increase in gain on assets held for sale was the result of a sale of a building previously used by ACNB Insurance Services

Current wording

•The increase in gain on assets HFS was the result of a sale of a building previously used by ACNB Insurance Services

Previous wording

•Gain on life insurance proceeds for the three months ended March 31, 2026 and the same period of 2025 was the result of death benefits paid on life insurance policies

Current wording

•Gain on life insurance proceeds for both periods was the result of death benefits paid on life insurance policies

Previous wording

•The increase in salaries and employee benefits, the largest component of noninterest expenses, was driven primarily by an increased number of employees attributable to the Acquisition and merit increases

Current wording

•The increase in salaries and employee benefits was driven primarily by an increased number of employees attributable to the Acquisition, merit increases and higher mortgage commissions

Previous wording

Total investment securities were $535.8 million at March 31, 2026 compared to $531.1 million at December 31, 2025. At March 31, 2026, the securities balance included a net unrealized loss on AFS securities of $27.7 million on amortized cost of $499.3 million compared to a net unrealized loss of $24.2 million on amortized cost of $491.1 million at December 31, 2025. At March 31, 2026, the securities balance included HTM securities with an amortized cost of $63.2 million and a fair value of $56.2 million as compared to an amortized cost of $63.3 million and a fair value of $57.5 million at December 31, 2025.

Current wording

Total investment securities were $529.8 million at June 30, 2026 compared to $531.1 million at December 31, 2025. At June 30, 2026, the investment securities balance included a net unrealized loss on AFS investment securities of $27.9 million on amortized cost of $494.1 million compared to a net unrealized loss of $24.2 million on amortized cost of $491.1 million at December 31, 2025. At June 30, 2026, the investment securities balance included HTM investment securities with an amortized cost of $62.6 million and a fair value of $56.6 million as compared to an amortized cost of $63.3 million and a fair value of $57.5 million at December 31, 2025.

Previous wording

The following table presents the composition of the loan portfolio as follows:

Current wording

The following table presents the composition of the loan portfolio:

Previous wording

Total loans, net of unearned income, outstanding increased $18.7 million, or 0.8%, from December 31, 2025 to March 31, 2026. The increase was driven primarily by growth in the commercial real estate portfolio partially offset by a decrease in the real estate construction portfolio as a result of completed projects which primarily moved to commercial real estate loans. Total acquisition accounting adjustments on loans were $16.3 million at March 31, 2026. 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 other than within its primary Market Area.

Current wording

Total loans, net of unearned income increased $67.6 million, or 2.9%, from December 31, 2025 to June 30, 2026. The increase was driven primarily by growth in the commercial real estate and commercial and industrial portfolios. Total acquisition accounting adjustments on loans were $14.5 million and $18.2 million at June 30, 2026 and December 31, 2025, respectively. The majority of the loan acquisition accounting adjustments are expected to accrete back through as income as loans amortize and pay off. ACNB does not have a significant concentration of credit risk with any single borrower, industry, or geographic location other than within its Market Area.

Previous wording

The commercial real estate portfolio, which includes farmland, multifamily, owner-occupied and non-owner occupied commercial real estate, grew $28.0 million, or 2.2%, compared to December 31, 2025. The growth in commercial real estate was spread across a variety of industries, including non-owner occupied apartment complex, owner occupied and non-owner occupied farming, non-owner occupied warehouse and owner occupied office complex categories. 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, 65.1% and 33.1%, respectively, at March 31, 2026, compared to 65.8% and 32.1%, respectively, at December 31, 2025. 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, apartment complexes and hotels, motels and bed and breakfast entities. Non-owner occupied commercial real estate represented 65.3% 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 $59.2 million, or 4.7%, compared to December 31, 2025 driven primarily by farmland ($31.1 million) and owner-occupied balances ($12.5 million) partially offset by a decrease in non-owner occupied balances ($11.0 million). 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 at 65.7% and 32.1%, respectively, as of June 30, 2026, compared to 65.8% and 32.1%, respectively, as of December 31, 2025. 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, apartment complexes and hotels, motels and bed and breakfast entities. Non-owner occupied commercial real estate represented 64.2% 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 233.1% of total risk-based capital of the Bank as of March 31, 2026 compared to 239.0% of total risk-based capital of the Bank as of December 31, 2025.

Current wording

The concentration of non-owner occupied commercial real estate, construction and multi-family was 231.6% of total risk-based capital of the Bank as of June 30, 2026 compared to 239.0% of total risk-based capital of the Bank as of December 31, 2025.

Previous wording

Residential real estate mortgages totaled $602.3 million, an increase of $3.3 million, or 0.5%, compared to December 31, 2025. Included in the residential real estate mortgages are $226.7 million of commercial loans and $58.9 million of consumer loans secured by residential real estate mortgages, which includes $37.3 million of 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 $602.7 million, an increase of $3.7 million, or 0.6%, compared to December 31, 2025. Included in the residential real estate mortgages are $228.4 million of commercial loans and $61.6 million of consumer loans secured by residential real estate mortgages. Approximately 85% of the first liens have a loan to value, based on the current balance to the origination value of the property, of 80% or lower. Total residential real estate mortgages include $50.9 million of 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

The ACL at March 31, 2026 was $23.6 million, or 1.01% of total loans, net of unearned income as compared to $23.7 million, or 1.02% of loans, at December 31, 2025 and $24.6 million, or 1.06% of loans, at March 31, 2025.

Current wording

The ACL at June 30, 2026 was $24.0 million, or 1.00% of total loans, net of unearned income as compared to $23.7 million, or 1.02% of loans, at December 31, 2025 and $24.4 million, or 1.04% of loans, at June 30, 2025.

Previous wording

Information on nonaccrual loans, by collateral type rather than loan segment, at March 31, 2026, as compared to December 31, 2025, is as follows:

Current wording

Information on nonaccrual loans, by collateral type rather than loan segment is as follows:

Previous wording

Nonaccrual loans decreased $241 thousand from December 31, 2025 to March 31, 2026 driven primarily by paydowns. 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 decreased $1.2 million from December 31, 2025 to June 30, 2026 driven primarily by the movement of several loans to foreclosed assets held for resale and a pay-off. All nonaccrual loans are to borrowers located within ACNB’s Market Area and were originated by ACNB’s banking subsidiary or were part of a previous acquisition.

Previous wording

Deposits were comprised of the following for the periods presented:

Current wording

Deposits were comprised of the following:

Previous wording

ACNB relies on deposits as a primary source of funds for lending activities. The increase in deposits from December 31, 2025 to March 31, 2026 was driven primarily by the increase in time deposits, noninterest-bearing demand and money markets. Time deposits included $89.1 million of brokered time deposits compared to $59.1 million at December 31, 2025, an increase of $30.0 million. The increase in noninterest-bearing demand deposits was driven primarily by growth in commercial balances due to promotional incentives on commercial checking accounts and the increase in money markets was driven primarily by growth in balances of both consumer and commercial accounts. Historically, deposit balances fluctuate reflecting different balance levels held by local companies, government units and school districts during different times of the year. Included in total deposits at March 31, 2026 were municipal deposits totaling $127.1 million, or 5.0%, of total deposits compared to $119.3 million, or 4.9%, of total deposits at December 31, 2025. The loan-to-deposit ratio was 93.01% at March 31, 2026 compared to 95.12% at December 31, 2025.

Current wording

ACNB relies on deposits as a primary source of funds for lending activities. The increase in deposits from December 31, 2025 to June 30, 2026 was driven primarily by the increase in noninterest-bearing demand deposits, time deposits and interest-bearing demand deposits. The increase in noninterest-bearing demand deposits was driven primarily by promotional incentives on commercial checking accounts. Time deposits included $75.0 million of brokered time deposits compared to $59.1 million at December 31, 2025, an increase of $15.9 million. The increase in interest-bearing demand deposits was driven primarily by an influx of seasonal deposits. Historically, deposit balances fluctuate reflecting different balance levels held by local companies, government units and school districts during different times of the year. Included in total deposits at June 30, 2026 were municipal deposits totaling $126.4 million, or 5.0%, of total deposits compared to $119.3 million, or 4.9%, of total deposits at December 31, 2025. The loan-to-deposit ratio was 94.57% at June 30, 2026 compared to 95.12% at December 31, 2025.

Previous wording

ACNB’s deposit pricing function employs a disciplined pricing approach based upon liquidity needs and alternative funding rates, but also strives to price deposits to be competitive with relevant local competition, including local government investment trusts, credit unions and larger regional banks. Based on total Bank deposits outstanding, consumer and commercial constituted approximately 61% and 39%, respectively, of total Bank deposits as of both March 31, 2026 and December 31, 2025. The ratio of uninsured and non-collateralized Bank deposits to total Bank deposits was 17.7% at March 31, 2026. As of March 31, 2026, cash on hand, the fair value of unencumbered investment securities and collateralized borrowing capacities at the FHLB and the Federal Reserve discount window at the Bank were 349.5% of uninsured and non-collateralized Bank deposits. At March 31, 2026, deposits from the 20 largest unrelated depositors, excluding internal accounts, of the Bank totaled $174.9 million, or 6.9%, of total Bank deposits compared to $177.2 million, or 7.2%, of total Bank deposits at December 31, 2025.

Current wording

ACNB’s deposit pricing function employs a disciplined pricing approach based upon liquidity needs and alternative funding rates, but also strives to price deposits to be competitive with local competition, including local government investment trusts, credit unions and larger regional banks. Based on total Bank deposits outstanding, consumer and commercial constituted approximately 60% and 40%, respectively, of total Bank deposits as of June 30, 2026 compared to 61% and 39%, respectively, as of December 31, 2025. The ratio of uninsured and non-collateralized Bank deposits to total Bank deposits was 18.1% at June 30, 2026. As of June 30, 2026, cash on hand, the fair value of unencumbered investment securities and collateralized borrowing capacities at the FHLB and the Discount Window at the Bank were 329.7% of uninsured and non-collateralized Bank deposits. At June 30, 2026, deposits from the 20 largest unrelated depositors, excluding internal accounts, of the Bank totaled $170.3 million, or 6.7%, of total Bank deposits compared to $177.2 million, or 7.2%, of total Bank deposits at December 31, 2025.

Previous wording

Short-term borrowings are comprised of securities sold under agreements to repurchase, short-term borrowings from the FHLB and federal funds purchased. As of March 31, 2026, short-term borrowings were $63.8 million, a decrease of $912 thousand compared to $64.7 million at December 31, 2025. Short-term FHLB advances were $45.0 million at both March 31, 2026 and December 31, 2025. Short-term FHLB borrowings are used forgeneral balance sheet management. Compared to December 31, 2025, securities sold under repurchase agreements balances decreased by $1.0 million, or 6.4%, due to normal changes in the cash flow position of ACNB’s commercial and local government customer base. Agreements to repurchase accounts are within the commercial and local government customer base and have attributes similar to core deposits. Investment securities are pledged in sufficient amounts to collateralize these agreements.

Current wording

Short-term borrowings are comprised of securities sold under agreements to repurchase, short-term borrowings from the FHLB and federal funds purchased. As of June 30, 2026, short-term borrowings were $108.3 million, an increase of $43.5 million compared to $64.7 million at December 31, 2025. Short-term FHLB advances were $90.0 million at June 30, 2026 compared to $45.0 million at December 31, 2025. Short-term FHLB borrowings are used forgeneral balance sheet management, and the increase from prior periods was used to fund loan growth. Compared to December 31, 2025, securities sold under repurchase agreements balances decreased by $2.2 million, or 13.9%, due to normal changes in the cash flow position of ACNB’s commercial and local government customer base. Agreements to repurchase accounts are within the commercial and local government customer base and have attributes similar to core deposits. Investment securities are pledged in sufficient amounts to collateralize these agreements.

Previous wording

Long-term borrowings consist of longer-term advances from the FHLB, trust preferred subordinated debt and subordinated debt. Long-term borrowings totaled $215.4 million at March 31, 2026 compared to $255.4 million at December 31, 2025. During the three months ended March 31, 2026 the Company paid off $40.0 million of long-term FHLB borrowings. On March 12, 2026, the Company sold and issued $15.0 million in aggregate principal amount 5.875% fixed-to-floating rate subordinated notes due March 15, 2036. On March 31, 2026, the Company redeemed the $15.0 million in aggregate principal amount 4.00% fixed-to-floating rate subordinated notes that were issued on March 30, 2021. Further borrowings will be used when necessary for a variety of risk management and funding purposes. Please refer to the Liquidity discussion below for more information on the Corporation’s ability to borrow.

Current wording

Long-term borrowings consist of longer-term advances from the FHLB, trust preferred subordinated debt and subordinated debt. Long-term borrowings totaled $214.9 million at June 30, 2026 compared to $255.4 million at December 31, 2025. During the six months ended June 30, 2026 the Company paid off $40.0 million of long-term FHLB borrowings. On March 12, 2026, the Company sold and issued $15.0 million in aggregate principal amount 5.875% fixed-to-floating rate subordinated notes due March 15, 2036. On March 31, 2026, the Company redeemed the $15.0 million in aggregate principal amount 4.00% fixed-to-floating rate subordinated notes that were issued on March 30, 2021. Additional borrowings will be used when necessary for a variety of risk management and funding purposes. Please refer to the Liquidity discussion below for more information on the Corporation’s ability to borrow.

Previous wording

ACNB’s capital management strategies have been developed to provide an appropriate risk-adjusted rate of return, in the opinion of management, to shareholders, while maintaining levels above its internal minimums and “well-capitalized” regulatory position in relationship to its risk exposure. Total stockholders’ equity was $425.5 million at March 31, 2026 compared to $420.0 million at December 31, 2025. The increase to stockholders’ equity during the three months ended March 31, 2026 was driven primarily by net income of $13.7 million partially offset by a $1.3 million change in unrealized gains in AFS investment securities, cash dividends paid to ACNB Corporation stockholders of $3.9 million, and common stock repurchases of $3.6 million.

Current wording

ACNB’s capital management strategies have been developed to provide an appropriate risk-adjusted rate of return, in the opinion of management, to shareholders, while maintaining levels above its internal minimums and “well-capitalized” regulatory position in relationship to its risk exposure. Total stockholders’ equity was $423.3 million at June 30, 2026 compared to $420.0 million at December 31, 2025. The increase to stockholders’ equity was driven primarily by net income of $28.9 million partially offset by cash dividends paid to ACNB Corporation stockholders of $13.2 million, and common stock repurchases of $12.7 million.

Previous wording

ACNB Corporation has a Dividend Reinvestment and Stock Purchase Plan that provides registered holders of ACNB Corporation common stock with a convenient way to purchase additional shares of common stock by permitting participants in the plan to automatically reinvest cash dividends on all or a portion of the shares owned and to make quarterly voluntary cash payments under the terms of the plan. Participation in the plan is voluntary, and there are eligibility requirements to participate in the plan. During the three months ended March 31, 2026, 7,669 shares were issued under this plan with proceeds in the amount of $356 thousand.

Current wording

ACNB Corporation has a Dividend Reinvestment and Stock Purchase Plan that provides registered holders of ACNB Corporation common stock with a convenient way to purchase additional shares of common stock by permitting participants in the plan to automatically reinvest cash dividends on all or a portion of the shares owned and to make quarterly voluntary cash payments under the terms of the plan. Participation in the plan is voluntary, and there are eligibility requirements to participate in the plan. During the six months ended June 30, 2026, 13,115 shares were issued under this plan with proceeds in the amount of $689 thousand.

Previous wording

Effective liquidity management ensures the cash flow requirements of depositors and borrowers as well as the operating cash needs of ACNB are met. ACNB’s funds are available from a variety of sources, including assets that are readily convertible such as interest-bearing deposits with banks, maturities and repayments from the securities portfolio, scheduled repayments of loans receivable, the core deposit base, the ability to raise brokered deposits, and the ability to borrow from the FHLB, Federal Reserve Discount Window and unsecured Federal Funds line providers.

Current wording

Effective liquidity management ensures the cash flow requirements of depositors and borrowers as well as the operating cash needs of ACNB are met. ACNB’s funds are available from a variety of sources, including assets that are readily convertible such as interest-bearing deposits with banks, maturities and repayments from the securities portfolio, scheduled repayments of loans receivable, the core deposit base, the ability to raise brokered deposits and the ability to borrow from the FHLB, Discount Window and unsecured Federal Funds line providers.