ACNB CORP

Previous 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.

Current wording

Financial results for the nine months ended September 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 $7.9 million, net of taxes. Financial results for the nine months ended September 30, 2025 include ACNB’s standalone results for the month of January 2025.

Previous 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.

Current wording

•Net Interest Income —Net interest income was $34.8 million for the three months ended September 30, 2026 compared to $32.1 million for the same period of 2025, an increase of $2.6 million. For the nine months ended September 30, 2026, net interest income was $101.3 million compared to $90.2 million for the same period of 2025, an increase of $11.1 million. The increase in net interest income was driven primarily by loan growth and 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 yield on investment securities during the nine months ended September 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 4.56% 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

Current wording

◦Net Interest Margin —FTE net interest margin increased to 4.56% for the three months ended September 30, 2026 compared to 4.27% in the same period of 2025, an increase of 29 bps. FTE net interest margin increased to 4.53% for the nine months ended September 30, 2026 compared to 4.19% in the same period of 2025, an increase of 34 bps. The accretion impact of acquisition accounting adjustments on loans and deposits from the

Previous wording

◦Loan Growth —Average loans increased $46.0 million for the three months ended June 30, 2026, compared to the same period of 2025, driven primarily by organic growth in the commercial real estate portfolio and increased $126.9 million for the six months ended June 30, 2026, compared to the same period of 2025 driven primarily by organic growth in the commercial real estate portfolio and the Acquisition.

Current wording

◦Loan Growth —Average loans increased $60.6 million for the three months ended September 30, 2026, compared to the same period of 2025, driven primarily by growth in the commercial real estate portfolio and increased $104.6 million for the nine months ended September 30, 2026, compared to the same period of 2025 driven primarily by growth in the commercial real estate portfolio and the Acquisition.

Previous 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.

Current wording

◦Deposit Growth —Average noninterest-bearing deposits increased $21.6 million and $27.7 million for the three and nine months ended September 30, 2026, respectively, compared to the same periods of 2025 driven primarily by promotional incentives on commercial checking accounts and the Acquisition. Average interest-bearing deposits increased $1.4 million for three months ended September 30, 2026 compared to the same period of 2025 driven primarily by an increase in time deposits due to ongoing promotions and organic growth in interest-bearing demand deposits partially offset by attrition of higher cost money market deposits from the Acquisition. Average interest-bearing deposits increased $45.9 million for the nine months ended September 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 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.

Current wording

◦Yield on Average Earning Assets —For the three and nine months ended September 30, 2026, the yields on average earning assets were 5.88% and 5.84%, respectively, an increase of 24 and 26 bps compared to the same periods of 2025.

Previous 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.

Current wording

◦Rate on Average Interest-bearing Liabilities —For the three and nine months ended September 30, 2026, the rates on average interest-bearing liabilities were 1.80% and 1.76%, respectively, a decrease of 3 and 8 bps, respectively, compared to the same periods of 2025.

Previous 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.

Current wording

•Asset Quality —The allowance for credit losses was $25.0 million at September 30, 2026, compared to $23.7 million at December 31, 2025. The increase was driven primarily by a specific allowance allocation on a relationship in the commercial and industrial portfolio and, to a lesser extent, loan growth; Management does not believe the increase is indicative of a general weakness in the overall loan portfolio but rather the increase is driven primarily by an isolated credit issue specific to an individual borrower.

Previous 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.

Current wording

◦Annualized net charge-offs to total average loans outstanding for both the three and nine months ended September 30, 2026 and 2025 were 0.02% and 0.01%, respectively.

Previous 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.

Current wording

◦Non-performing loans were $10.7 million, or 0.45%, of total loans at September 30, 2026 compared to $10.0 million, or 0.43%, of total loans at September 30, 2025. The increase was driven primarily by the migration of four loans to three unrelated borrowers totaling $1.4 million to nonaccrual and an increase in greater than or equal to 90 days past due and accruing partially offset by charge-offs, the movement of several loans to foreclosed assets held for resale and paydowns.

Previous 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.

Current wording

•Noninterest income —Noninterest income was $9.0 million and $26.1 million for the three and nine months ended September 30, 2026, respectively, an increase of $621 thousand and $1.8 million, respectively, for the same periods of 2025. The increase for the three months ended September 30, 2026 was driven primarily by the gain on life insurance proceeds as the result of a death benefit received, partially offset by lower gain from mortgage loans held for sale. In addition to the impact of the Acquisition, the increase for the nine months ended September 30, 2026 compared to the same period of 2025 was driven primarily by the gain on life insurance proceeds, earnings on investment in bank-owned life insurance and higher wealth management income.

Previous 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.

Current wording

•Noninterest expenses —Noninterest expense was $23.2 million and $70.0 million for the three and nine months ended September 30, 2026, respectively, an increase of $859 thousand and a decrease of $7.1 million for the same periods of 2025, respectively. The increase was driven primarily by higher salaries and employee benefits expenses and professional services expenses partially offset by merger-related expenses due to the Acquisition during the three months ended September 30, 2025. The decrease for the nine months ended September 30, 2026 was driven primarily by merger-related expenses due to the Acquisition.

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

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 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.

Previous wording

Net income for the three months ended June 30, 2026 was $15.2 million, or $1.49 diluted earnings per share, compared to net income of $11.6 million, or $1.11 diluted earnings per share for the same period of 2025, an increase of $3.6 million, or $0.38 diluted earnings per share. The financial results for the three months ended June 30, 2025 were impacted by merger-related expenses, net of taxes, totaling $1.5 million.

Current wording

Net income for the three months ended September 30, 2026 was $15.7 million, or $1.55 diluted earnings per share, compared to net income of $14.9 million, or $1.42 diluted earnings per share for the same period of 2025, an increase of $857 thousand, or $0.13 diluted earnings per share. The financial results for the three months ended September 30, 2025 were impacted by merger-related expenses, net of taxes, totaling $131 thousand.

Previous 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.

Current wording

Net interest income totaled $34.8 million for the three months ended September 30, 2026 compared to $32.1 million for the same period of 2025, an increase of $2.6 million. The FTE net interest margin for the three months ended September 30, 2026 was 4.56%, a 29 bps increase from 4.27% for the same period of 2025. The increase in net interest income and FTE net interest margin was driven primarily by loan growth, higher yielding assets 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 $1.6 million and $2.1 million for the three months ended September 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

The following table provides a comparative average Consolidated Statement of Condition and net interest income analysis for the periods presented. Interest income and yields are presented on a FTE basis. The discussion following this table is based on these tax equivalent amounts.

Current wording

The following table provides a comparative average Consolidated Statement of Condition and net interest income analysis for the periods presented. Interest income and yields are presented on an FTE basis. The discussion following this table is based on these tax equivalent amounts.

Previous 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.

Current wording

Total FTE interest income increased $2.5 million during the three months ended September 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 loans and investment securities funded at higher rates than those that paid off or matured. Also contributing to the increase was growth of $60.6 million in average loan balances primarily in the commercial real estate portfolio.

Previous wording

Total interest expense decreased $881 thousand during the three months ended June 30, 2026 compared to the same period of 2025, driven primarily by lower average balances and costs of interest-bearing deposits, primarily a result of attrition of higher cost money market and time deposits from the Acquisition, as well as lower average borrowings.

Current wording

Total interest expense decreased $177 thousand during the three months ended September 30, 2026 compared to the same period of 2025, driven primarily by lower average balances and costs of interest-bearing deposits, mainly a result of attrition of higher cost money market and time deposits that were from the Acquisition, as well as lower average borrowings.

Previous wording

The provision for credit losses was $554 thousand for the three months ended June 30, 2026 compared to a reversal of $228 thousand for the same period of 2025, and was driven primarily by loan growth. The reversal of the provision for unfunded commitments was $107 thousand for the three months ended June 30, 2026 compared to a reversal of $354 thousand for the same period of 2025. The Corporation assesses risks and reserves required compared with the balances in the ACL and unfunded commitments on a quarterly basis.

Current wording

The provision for credit losses was $1.1 million for the three months ended September 30, 2026 compared to a reversal of $584 thousand for the same period of 2025, and was driven primarily by a specific allowance allocation on a relationship in the commercial and industrial portfolio and, to a lesser extent, loan growth; management does not believe the increase is indicative of a general weakness in the overall loan portfolio but rather the increase is driven primarily by an isolated credit issue specific to an individual borrower. The reversal of the provision for unfunded commitments was $170 thousand for the three months ended September 30, 2026 compared to a reversal of $145 thousand for the same period of 2025 driven primarily by a reduction in exposure. 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 wealth management was driven primarily by assets under management growth due to new business generation and positive market impacts

Current wording

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

Previous wording

•The increase in other tax was driven primarily by asset growth due to the Acquisition

Current wording

•The increase in other tax was driven primarily by asset and capital growth

Previous 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.

Current wording

The Corporation recognized income tax expense of $4.0 million during both the three months ended September 30, 2026 and 2025. The provision for income taxes reflects a combined Federal and State ETR of 20.1% and 21.4% for the three months ended September 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, income from bank-owned life insurance policies, death benefits received on 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 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.

Current wording

Net income for the nine months ended September 30, 2026 was $44.6 million, or $4.36 diluted earnings per share, compared to net income of $26.2 million, or $2.56 diluted earnings per share for the same period of 2025, an increase of $18.4 million and $1.80 diluted earnings per share. The increase in net income for the nine months ended September 30, 2026 was driven primarily by higher net interest income and the impact of two discrete items for the nine months ended September 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 $7.9 million, net of taxes. Financial results for the nine months ended September 30, 2025 include ACNB’s standalone results for the month of January 2025.

Previous wording

Net interest income totaled $66.5 million for the six months ended June 30, 2026 compared to $58.1 million for the same period of 2025, an increase of $8.4 million. The FTE net interest margin for the six months ended June 30, 2026 was 4.51%, a 37 bps increase from 4.14% for the same period of 2025. The increases were 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 yield on investment securities 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 $3.6 million and $3.7 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Net interest income totaled $101.3 million for the nine months ended September 30, 2026 compared to $90.2 million for the same period of 2025, an increase of $11.1 million. The FTE net interest margin for the nine months ended September 30, 2026 was 4.53%, a 34 bps increase from 4.19% for the same period of 2025. The increases were driven primarily by loan growth and 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 yield on investment securities 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 $5.2 million and $5.8 million for the nine months ended September 30, 2026 and 2025, respectively.

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, 2026 compared to thesame period of 2025:

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, 2026 compared to thesame period of 2025:

Previous wording

Total FTE interest income increased $8.1 million during the six months ended June 30, 2026 compared to the same period of 2025 driven primarily by loan growth and new loans and investment securities funded at higher rates than those that paid off or matured. The loan growth was concentrated primarily in the commercial real estate portfolio. The repositioning of the investment securities portfolio completed during the three months ended December 31, 2025 contributed to higher yields on the investment securities portfolio.

Current wording

Total FTE interest income increased $10.6 million during the nine months ended September 30, 2026 compared to the same period of 2025 driven primarily by loan growth and higher yielding assets. Average loan balances grew $104.6 million concentrated in the commercial real estate portfolio. The repositioning of the investment securities portfolio which was completed during the three months ended December 31, 2025 contributed to higher yields on the investment securities portfolio.

Previous wording

Total interest expense decreased $364 thousand during the six months ended June 30, 2026 compared to the same period of 2025 driven primarily by lower average costs of interest-bearing deposits, primarily a result of attrition of higher cost money market and time deposits from the Acquisition, as well as lower average borrowings. The average cost of interest-bearing deposits was 1.36% for the six months ended June 30, 2026, a decrease of 8 bps compared to the same period of 2025.

Current wording

Total interest expense decreased $541 thousand during the nine months ended September 30, 2026 compared to the same period of 2025 driven primarily by lower average costs of interest-bearing deposits, as a result of attrition of higher cost money market and time deposits from the Acquisition. The average cost of interest-bearing deposits was 1.36% for the nine months ended September 30, 2026, a decrease of 7 bps compared to the same period of 2025.

Previous 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.

Current wording

The provision for credit losses was $1.6 million for the nine months ended September 30, 2026 compared to $5.2 million for the same period of 2025. The 2025 provision expense was driven primarily by a provision for credit losses of $5.5 million for acquired non-PCD loans, and the provision for 2026 was driven primarily by a specific allowance allocation on a relationship in the commercial and industrial portfolio and, to a lesser extent, loan growth. The provision for unfunded commitments was a reversal of $290 thousand compared to a reversal of $979 thousand for the same period of 2025. The reversal of the provision for unfunded commitments for the nine months ended September 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 wealth management was driven primarily by assets under management growth due to new business generation and positive market impacts

Current wording

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

Previous wording

•Gain on life insurance proceeds for both periods 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 received on life insurance policies for former officers/director

Previous 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

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 incentive compensation, restricted stock expense, mortgage commissions and employee health insurance expense

Previous wording

•The increase in other tax was driven primarily by asset growth due to the Acquisition

Current wording

•The increase in other tax was driven primarily by asset and capital growth

Previous wording

The Corporation recognized income taxes of $7.6 million for the six months ended June 30, 2026 compared to $3.0 million during the same period of 2025. The provision for income taxes for the six months ended June 30, 2026 and 2025 reflect a combined Federal and State ETR of 20.8%. 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.

Current wording

The Corporation recognized income taxes of $11.6 million for the nine months ended September 30, 2026 compared to $7.0 million during the same period of 2025. The provision for income taxes for the nine months ended September 30, 2026 and 2025 reflect a combined Federal and State ETR of 20.6% and 21.1%, respectively. The variances from the federal statutory rate of 21% are generally due to tax-free income, which includes, but is not limited to, interest income on tax-free loans and investment securities, income from bank-owned life insurance policies, death benefits received on 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

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.

Current wording

Total investment securities were $514.2 million at September 30, 2026 compared to $531.1 million at December 31, 2025. At September 30, 2026, the investment securities balance included a net unrealized loss on AFS investment securities of $47.6 million on amortized cost of $498.4 million compared to a net unrealized loss of $24.2 million on amortized cost of $491.1 million at December 31, 2025. At September 30, 2026, the investment securities balance included HTM investment securities with an amortized cost of $62.5 million and a fair value of $51.6 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

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.

Current wording

Total loans, net of unearned income, increased $76.0 million, or 3.3%, from December 31, 2025 to September 30, 2026. The increase was driven primarily by growth in the commercial real estate, commercial and industrial and real estate construction portfolios. Total acquisition accounting adjustments on loans were $12.9 million and $18.2 million at September 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 $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.

Current wording

The commercial real estate portfolio, which includes farmland, multifamily, owner-occupied and non-owner occupied commercial real estate, grew $50.7 million, or 4.0%, compared to December 31, 2025 driven primarily by farmland ($42.0 million), owner-occupied balances ($18.0 million) and multifamily ($12.3 million) partially offset by a decrease in non-owner occupied balances ($24.6 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 66.3% and 31.5%, respectively, as of September 30, 2026, compared to 65.8% and 32.1%, respectively, as of December 31, 2025. Less than 2% 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 63.1% 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 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.

Current wording

The concentration of non-owner occupied commercial real estate, construction and multi-family was 224.7% of total risk-based capital of the Bank as of September 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 $602.7 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.

Current wording

Residential real estate mortgages totaled $605.8 million, an increase of $6.8 million, or 1.1%, compared to December 31, 2025. Included in the residential real estate mortgages are $230.4 million of commercial loans and $58.5 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 $48.8 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 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.

Current wording

The ACL at September 30, 2026 was $25.0 million, or 1.04% of total loans, net of unearned income, as compared to $23.7 million, or 1.02% of loans, at December 31, 2025 and $23.7 million, or 1.01% of loans, at September 30, 2025.

Previous 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.

Current wording

Nonaccrual loans decreased $480 thousand from December 31, 2025 to September 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.