false000071557900007155792024-01-252024-01-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
______________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
______________

Date of Report (Date of earliest event reported): January 25, 2024

ACNB Corporation
(Exact name of Registrant as specified in its charter)


Pennsylvania1-3501523-2233457
(State or other
jurisdiction of
incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
16 Lincoln Square, Gettysburg, PA
 17325
(Address of principal executive offices) (Zip Code)
717.334.3161
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title Of Each ClassTrading Symbol(s)Name Of Each Exchange On Which Registered
Common Stock, $2.50 par value per shareACNBThe NASDAQ Stock Market, LLC



CURRENT REPORT ON FORM 8-K

ITEM 2.02    Results of Operations and Financial Condition

ACNB Corporation released financial results for the three months and year ended December 31, 2023, as more fully described in the attached press release dated January 25, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information furnished under this Item 2.02 of this Current Report on Form 8-K shall not be deemed to be filed for purposes of the Securities Exchange Act of 1934.

ITEM 9.01    Financial Statements and Exhibits

(d) Exhibits.

Exhibit Number    Description


104    Cover Page Interactive Data File (embedded within the Inline XBRL document).











SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned, thereunto duly authorized.


  
ACNB CORPORATION (Registrant)
   
Dated:January 25, 2024 /s/ Kevin J. Hayes
  Kevin J. Hayes
  Senior Vice President/
  General Counsel, Secretary & Chief Governance Officer

Exhibit 99.1
acnb_corpxverticalxlogoxcma.jpg
PRESS RELEASE

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

ACNB CORPORATION REPORTS
FOURTH QUARTER AND 2023 FINANCIAL RESULTS

GETTYSBURG, PA, January 25, 2024 --- ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced net income of $4.1 million, or $0.48 per diluted earnings per share, for the three months ended December 31, 2023 compared to net income of $10.2 million, or $1.20 per diluted earnings per share, for the three months ended December 31, 2022. Compared to the three months ended September 30, 2023, net income and diluted earnings per share for the three months ended December 31, 2023 decreased $4.9 million and $0.58, respectively. The Corporation reported net income of $31.7 million, or $3.71 per diluted earnings per share, for the twelve months ended December 31, 2023, a decrease of $4.1 million compared to the twelve months ended December 31, 2022. The financial results for both the three and twelve month periods ended December 31, 2023 were impacted by the repositioning of the investment securities portfolio as announced on Form 8-K on December 15, 2023. ACNB completed a repositioning of the investment securities portfolio by selling approximately $51.1 million in book value of available for sale investment securities for an after-tax loss of approximately $3.5 million.

2023 Highlights

•Return on average assets was 1.32% and return on average equity was 12.23% for the twelve months ended December 31, 2023.

•Excluding the impact of the repositioning of the investment securities portfolio, return on average assets was 1.47%1 and return on average equity was 13.57%1 for the twelve months ended December 31, 2023.

•Fully taxable equivalent (“FTE”) net interest margin was 4.07% for the twelve months ended December 31, 2023 compared to 3.36% for the twelve months ended December 31, 2022.

•Efficiency ratio1 was 57.78% for the twelve months ended December 31, 2023 compared to 55.81% for the twelve months ended December 31, 2022.

•Total loans were $1.63 billion at December 31, 2023, an increase of $12.0 million, or 0.7%, from September 30, 2023 and an increase of $89.4 million, or 5.8%, from December 31, 2022.

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

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January 25, 2024
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•Total non-performing loans to loans held-for-investment was 0.26% at December 31, 2023 compared to 0.22% at September 30, 2023 and 0.25% at December 31, 2022. Net charge-offs to average loans (annualized) were 0.02% for the three months ended December 31, 2023 compared to 0.03% for the three months ended September 30, 2023 and 0.02% for the three months ended December 31, 2022.

•The loan to deposit ratio was 87.44% at December 31, 2023 and the ratio of uninsured and non-collateralized deposits to total deposits was approximately 17.3% at ACNB Bank at December 31, 2023.

•Tangible common equity to tangible assets ratio1 of 9.48% at December 31, 2023 compared to 8.65% at September 30, 2023 and 7.71% at December 31, 2022. The net unrealized loss on the available for sale securities portfolio was $50.2 million at December 31, 2023 compared to a net unrealized loss of $75.2 million at September 30, 2023 and a net unrealized loss of $64.1 million at December 31, 2022.

•ACNB and ACNB Bank capital levels remain well in excess of ACNB’s internal minimums and those required to be categorized as well-capitalized by our bank regulators. ACNB’s overall liquidity position remains strong and stable.

“The financial services industry was challenged in 2023 with considerable market uncertainty and turmoil. However, ACNB Corporation continued to focus on fundamental community banking principals and we are pleased to share our positive operating results. As a result of our steadfast commitment to our shareholders, customers, and employees, our financial performance during the year has positioned ACNB Corporation to meet the future demands facing our industry and our customers,” said James P. Helt, ACNB Corporation President & Chief Executive Officer.

“We began 2023 with our rebranding efforts and the concept of One Together, One Team, One Brand. The goal of brand realignment is for ACNB Corporation and its subsidiaries to operate cohesively under one name and one brand to effectively serve the financial needs of customers throughout the organization’s footprint in southcentral Pennsylvania and central Maryland. Through this dedicated effort, ACNB Corporation, ACNB Bank and ACNB Insurance Services, Inc. now provide brand recognition and impact for customers, shareholders, and communities served alike. Additionally, we experienced meaningful loan growth in 2023 led by our Commercial Lending teams. Our capital base, superior asset quality metrics and continued robust risk management practices remain key strengths of the Corporation. These corporate strengths provided us the opportunity at the end of 2023 to reposition our investment securities portfolio to improve our future interest income by approximately $1.9 million over the next 12 months.”

Mr. Helt continued, “We look forward to a successful 2024 by continuing to execute our strategy of remaining an independent financial services provider of choice in the communities served by building relationships and finding solutions for our customers. As always, ACNB Corporation’s Management and Board of Directors are focused on the challenges and opportunities that lie ahead and we are committed to continued growth and profitability for the Corporation.”

Net Interest Income and Margin

    Net interest income for the three months ended December 31, 2023 totaled $21.5 million, a decrease of $252 thousand, or 1.2%, compared to the three months ended September 30, 2023. The decline in net interest income was driven primarily by an increase in the cost of deposits and an increase in borrowings. The FTE net interest margin was 3.93%, a decrease of 8 basis points from 4.01% for the three months ended September 30, 2023. The average rate paid on interest-bearing deposits was 0.51% for the three months ended December 31, 2023, an increase of 25 basis points from the three months ended September 30, 2023. The average rate paid on total borrowings was 4.06% for the three months ended December 31, 2023, an increase of 23 basis points from

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the three months ended September 30, 2023. The average yield on interest-earning assets was 4.62% for the three months ended December 31, 2023, an increase of 16 basis points from the three months ended September 30, 2023.

Net interest income for the twelve months ended December 31, 2023 totaled $88.3 million, an increase of $4.9 million, or 5.9%, over the twelve months ended December 31, 2022. The increase in net interest income was driven primarily by higher interest rates. Paycheck Protection Program (“PPP”) fees and purchase accounting accretion for the twelve months ended December 31, 2023 totaled $1.2 million compared to $3.8 million for the twelve months ended December 31, 2022. The FTE net interest margin was 4.07% for the twelve months ended December 31, 2023, an increase of 71 basis points from 3.36% for the twelve months ended December 31, 2022. The average rate paid on interest-bearing deposits was 0.25% for the twelve months ended December 31, 2023, an increase of 10 basis points from the twelve months ended December 31, 2022. The average rate paid on total borrowings was 3.62% for the twelve months ended December 31, 2023, an increase of 187 basis points from the twelve months ended December 31, 2022. The average yield on interest-earning assets was 4.45% for the twelve months ended December 31, 2023, an increase of 95 basis points from the twelve months ended December 31, 2022.

Noninterest Income

Noninterest income for the three months ended December 31, 2023 was $970 thousand, a decrease of $5.3 million, or 84.6%, from the three months ended September 30, 2023. For the twelve months ended December 31, 2023, noninterest income was $18.4 million, a decrease of $3.4 million, or 15.4%, compared to the twelve months ended December 31, 2022. The decrease in both periods was driven primarily by the repositioning of the investment securities portfolio which generated a $4.5 million pre-tax loss on the sale of investment securities.

Insurance commissions for the three months ended December 31, 2023 was $1.9 million, a decrease of $681 thousand from the three months ended September 30, 2023 due to seasonality in annual policy renewals. Insurance commissions for the twelve months ended December 31, 2023 was $9.3 million, an increase of $1.0 million from the twelve months ended December 31, 2022 driven primarily by higher contingent income, organic growth and the full year contribution from the acquisition of the business and assets of the Hockley & O’Donnell Insurance Agency in early 2022. Wealth management income for the twelve months ended December 31, 2023 was $3.6 million, an increase of $484 thousand from the twelve months ended December 31, 2022 driven primarily by strong market returns, greater sales activity and new business generation. Earnings on investment in bank-owned life insurance for the twelve months ended December 31, 2023 was $1.9 million, an increase of $346 thousand from the twelve months ended December 31, 2022 driven primarily by additional purchases during the three months ended September 30, 2022.

Noninterest Expense

Noninterest expense for the three months ended December 31, 2023 was $17.2 million, an increase of $837 thousand, or 5.1%, from the three months ended September 30, 2023. The increase was driven primarily by increases in salaries and employee benefits, equipment, professional services and FDIC and regulatory expenses. Salaries and employee benefits expense increased $527 thousand driven primarily by an increase in incentive compensation, an increase in employment taxes and an increase in expense due to loan originations. Equipment expense increased $176 thousand driven primarily by increases in core processing and annual maintenance expenses and purchases of additional equipment. Professional services increased $103 thousand primarily as a result of increased loan review and consulting expenses. The $68 thousand increase in FDIC and

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January 25, 2024
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regulatory was the result of a higher FDIC assessment due to changes in the composition of ACNB’s balance sheet.

For the twelve months ended December 31, 2023, noninterest expense was $66.1 million compared to $60.3 million for the year ended December 31, 2022. The $5.8 million, or 9.6%, increase was primarily driven by increases in salaries and employee benefits, professional services, marketing and corporate relations, FDIC and regulatory and other expenses. Salaries and employee benefits increased $5.0 million in the comparable period, driven primarily by an increase to incentive compensation, partly due to a partial reversal of incentive compensation in 2022, an increase in stock-based compensation, a general increase in base wages and commissions, due in part to the full year impact of the acquisition of the business and assets of the Hockley & O’Donnell Insurance Agency, an increase in pension expense, a partial reversal of expenses in 2022 related to loan originations, and an increase in ACNB Bank’s supplemental executive retirement plan and split dollar life insurance expenses. Professional services increased $234 thousand driven primarily by an increase in recruiting, external audit and consulting expenses. Marketing and corporate relations increased $313 thousand driven primarily by an increase of $283 thousand related to the rebranding of ACNB Bank’s Maryland banking locations. FDIC and regulatory expense increased $260 thousand as a result of a higher FDIC assessment due to changes in the composition of ACNB bank’s balance sheet. Other expense increased $744 thousand driven primarily by the write-off of an investment in a partnership, an increase in director expenses, a mark-to-market loss on an SBIC fund and internet banking expenses.

Loans and Asset Quality

Total loans outstanding were $1.63 billion at December 31, 2023, an increase of $12.0 million, or 0.7%, from September 30, 2023 and an increase of $89.4 million, or 5.8%, from December 31, 2022. The increase in both periods was driven primarily by growth in the commercial loan portfolio in our core markets.

Asset quality metrics continue to be stable. The provision for credit losses was $786 thousand and the provision for unfunded commitments was a reversal of $242 thousand for the three months ended December 31, 2023 compared to a provision for credit losses of $250 thousand and the provision for unfunded commitments was a reversal of $171 thousand for three months ended September 30, 2023 and no provision for credit losses or unfunded commitments for the three months ended December 31, 2022. Non-performing loans were $4.2 million, or 0.26%, of total loans at December 31, 2023 compared to $3.6 million, or 0.22%, of total loans at September 30, 2023 and $3.9 million, or 0.25%, of total loans at December 31, 2022. The increase in the provision for credit losses for the three months ended December 31, 2023 and non-performing loans at December 31, 2023 compared to the prior quarter was driven by one commercial and industrial relationship and was not indicative of a general weakness in the overall loan portfolio. Annualized net charge-offs for the three months ended December 31, 2023 were 0.02% of total average loans compared to 0.03% for the three months ended September 30, 2023 and 0.02% for three months ended December 31, 2022.

Deposits and Borrowings

Total deposits were $1.86 billion at December 31, 2023. Deposits decreased by $89.5 million, or 4.6%, since September 30, 2023 and decreased by $337.2 million, or 15.3%, from December 31, 2022. The decrease of $89.5 million compared to September 30, 2023 was driven by an outflow of municipal deposits of $41.7 million and a replacement of $30.0 million of brokered deposits with long-term borrowings. During the twelve months ended December 31, 2023, ACNB Bank restrained deposit rates for the better part of the year despite an increase in market interest rates and an increase in rates by competitors. As a result, total deposits declined during 2023 as customers sought higher yielding alternative deposit and investment products.


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January 25, 2024
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Total borrowings were $252.2 million at December 31, 2023, an increase of $98.8 million compared to September 30, 2023. The increase in borrowings was driven primarily by the outflow of municipal deposits and replacement of brokered deposits. Total borrowings increased $189.2 million from December 31, 2022 to December 31, 2023 to fund loan growth and deposit outflows during that period. The average rate on total long-term borrowings was 4.77% for the three months ended December 31, 2023 compared to 4.71% for the three months ended September 30, 2023 and 4.56% for the three months ended December 31, 2022. For the twelve months ended December 31, 2023, the average rate on total long-term borrowings was 4.76% compared to 3.97% for the twelve months ended December 31, 2022.

Stockholders’ Equity, Dividends and Share Repurchases

Total stockholders’ equity was $277.5 million at December 31, 2023 compared to $255.6 million at September 30, 2023 and $245.0 million at December 31, 2022. Tangible book value1 per share was $26.44, $23.80 and $22.41 at December 31, 2023, September 30, 2023 and December 31, 2022, respectively.

On January 23, 2024, the Board of Directors approved and declared a regular quarterly cash dividend of $0.30 per share of ACNB Corporation common stock payable on March 15, 2024, to shareholders of record as of March 1, 2024. This per share amount reflects a $0.02, or 7.1%, increase over the same quarter of 2023.

ACNB repurchased 13,838 shares of ACNB common stock during the three months ended December 31, 2023 at a cost of $452 thousand. For the twelve months ended December 31, 2023, ACNB repurchased 61,066 shares of ACNB common stock at a cost of $2.0 million.

About ACNB Corporation

ACNB Corporation, headquartered in Gettysburg, PA, is the $2.42 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, and ACNB Insurance Services, Inc., Westminster, MD. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 26 community banking offices and three loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 44 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, MD, and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.
# # #
SAFE HARBOR AND FORWARD-LOOKING STATEMENTS - Should there be a material subsequent event prior to the filing of the Annual Report on Form 10-K with the Securities and Exchange Commission, the financial information reported in this press release is subject to change to reflect the subsequent event. In addition to historical information, this press release may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of Management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Corporation’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as national, regional and local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. Such risks, uncertainties, and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: short-term and long-term effects of inflation and rising costs on the Corporation, customers and economy; banking instability caused by bank failures and continuing financial uncertainty of various banks which may adversely impact the Corporation and its securities and loan values, deposit stability, capital adequacy, financial condition, operations, liquidity, and results of operations; effects of governmental and fiscal policies, as well as legislative and regulatory changes; effects of new laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which the Corporation and its subsidiaries must comply; impacts of the capital and liquidity

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January 25, 2024
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requirements of the Basel III standards; effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future market conditions; future actions or inactions of the United States government, including the effects of short-term and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the federal government; effects of economic conditions particularly with regard to the negative impact of any pandemic, epidemic or health-related crisis and the responses thereto on the operations of the Corporation and current customers, specifically the effect of the economy on loan customers’ ability to repay loans; effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; inflation, securities market and monetary fluctuations; risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities, and interest rate protection agreements, as well as interest rate risks; difficulties in acquisitions and integrating and operating acquired business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; effects of technology changes; effects of general economic conditions and more specifically in the Corporation’s market areas; failure of assumptions underlying the establishment of reserves for credit losses and estimations of values of collateral and various financial assets and liabilities; acts of war or terrorism or geopolitical instability; disruption of credit and equity markets; ability to manage current levels of impaired assets; loss of certain key officers; ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s intellectual property rights; continued relationships with major customers; and, potential impacts to the Corporation from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses. We caution readers not to place undue reliance on these forward-looking statements. They only reflect Management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Please also carefully review any Current Reports on Form 8-K filed by the Corporation with the SEC.

ACNB #2024-3
January 25, 2024


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January 25, 2024
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ACNB Corporation Financial Highlights
Selected Financial Data by Respective Quarter End
(Unaudited)
(Dollars in thousands, except per share data)December 31, 2023September 30, 2023June 30, 2023March 31, 2023December 31, 2022
BALANCE SHEET DATA
Assets$2,418,847 $2,388,522 $2,378,151 $2,410,933 $2,525,507 
Securities517,221 501,063 518,093 568,232 620,250 
Total loans1,627,988 1,615,966 1,573,817 1,531,626 1,538,610 
Allowance for credit losses(19,969)(19,264)(19,148)(19,485)(17,861)
Deposits1,861,813 1,951,359 1,963,754 2,055,822 2,198,975 
Allowance for unfunded commitments1,719 1,962 2,132 2,011 92 
Borrowings252,174 153,388 132,703 76,294 62,954 
Stockholders’ equity277,461 255,638 257,069 255,841 245,042 
INCOME STATEMENT DATA
Interest income$25,284 $24,234 $23,213 $23,909 $24,894 
Interest expense3,791 2,489 1,223 817 846 
Net interest income21,493 21,745 21,990 23,092 24,048 
Provision for (reversal of ) credit losses786 250 (273)97 — 
(Reversal of) provision for unfunded commitments(242)(171)121 276 — 
Net interest income after provisions for credit losses and unfunded commitments20,949 21,666 22,142 22,719 24,048 
Noninterest income970 6,297 6,194 4,984 5,423 
Noninterest expenses17,173 16,336 16,281 16,282 16,673 
Income before income taxes4,746 11,627 12,055 11,421 12,798 
Provision for income taxes649 2,583 2,531 2,398 2,599 
Net income$4,097 $9,044 $9,524 $9,023 $10,199 
PROFITABILITY RATIOS
Total loans held-for-investment to deposits87.44 %82.81 %80.14 %74.50 %69.97 %
Return on average assets (annualized)0.68 %1.52 %1.62 %1.50 %1.56 %
Return on average equity (annualized)6.09 %13.84 %14.74 %14.58 %17.10 %
Efficiency ratio262.48 %56.97 %55.52 %56.36 %55.66 %
FTE Net interest margin3.93 %4.01 %4.11 %4.22 %4.03 %
Yield on average earning assets4.62 %4.46 %4.33 %4.37 %4.17 %
Yield on investment securities2.36 %2.24 %2.24 %2.46 %2.30 %
Yield on total loans5.29 %5.16 %5.05 %5.12 %4.97 %
Cost of funds0.71 %0.47 %0.23 %0.15 %0.14 %
PER SHARE DATA
Diluted earnings per share$0.48 $1.06 $1.12 $1.06 $1.20 
Cash dividends paid per share0.30 0.28 0.28 0.28 0.28 
Tangible book value per share2
26.44 23.80 23.83 23.66 22.41 
Tangible book value per share2 (excluding AOCI)3
31.74 31.43 30.64 29.76 29.23 
CAPITAL RATIOS4
Tier 1 leverage ratio11.57 %11.97 %11.79 %11.09 %9.91 %
Common equity tier 1 ratio15.16 %15.30 %15.38 %15.21 %15.00 %
Tier 1 risk based capital ratio15.45 %15.59 %15.72 %15.56 %15.36 %
Total risk based capital ratio17.41 %17.49 %17.67 %17.56 %17.32 %
CREDIT QUALITY
Net charge-offs to average loans outstanding (annualized)0.02 %0.03 %0.02 %0.02 %0.02 %
Total non-performing loans to loans held-for-investment50.26 %0.22 %0.23 %0.25 %0.25 %
Total non-performing assets to total assets60.19 %0.17 %0.17 %0.18 %0.17 %
Allowance for credit losses to loans held-for-investment1.23 %1.19 %1.22 %1.27 %1.16 %

2 Non-GAAP financial measure. Please refer to the calculation on the pages titled “Non-GAAP Reconciliation” at the end of this document.
3 Accumulated Other Comprehensive Income (Loss).
4 Regulatory capital ratios as of December 31, 2023 are preliminary.
5 Non-performing Loans consists of loans on nonaccrual status and loans greater than ninety days past due and still accruing interest.
6 Non-performing Assets consists of Non-performing Loans and Foreclosed assets held for resale.

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January 25, 2024
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Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands, except per share data)December 31, 2023September 30, 2023December 31, 2022
ASSETS
Cash and due from banks$21,442 $22,786 $40,067 
Interest-bearing deposits with banks44,516 41,255 128,094 
Total Cash and Cash Equivalents65,958 64,041 168,161 
Equity securities with readily determinable fair values928 888 1,719 
Investment securities available for sale, at estimated fair value451,693 435,559 553,554 
Investment securities held to maturity, at amortized cost64,600 64,616 64,977 
Loans held for sale280 — 123 
Total loans1,627,988 1,615,966 1,538,610 
Less: Allowance for credit losses(19,969)(19,264)(17,861)
Loans, net1,608,019 1,596,702 1,520,749 
Assets held for sale— — 3,393 
Premises and equipment, net26,283 25,740 27,053 
Right of use asset2,615 2,784 3,162 
Restricted investment in bank stocks9,677 5,477 1,629 
Investment in bank-owned life insurance79,871 79,391 77,993 
Investments in low-income housing partnerships1,003 1,034 1,129 
Goodwill44,185 44,185 44,185 
Intangible assets, net9,082 9,434 10,332 
Foreclosed assets held for resale467 467 474 
Other assets54,186 58,204 46,874 
Total Assets$2,418,847 $2,388,522 $2,525,507 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing$500,332 $565,530 $595,049 
Interest-bearing1,361,481 1,385,829 1,603,926 
Total Deposits1,861,813 1,951,359 2,198,975 
Short-term borrowings56,882 33,106 41,954 
Long-term borrowings195,292 120,282 21,000 
Lease liability2,615 2,784 3,162 
Allowance for unfunded commitments1,719 1,962 92 
Other liabilities23,065 23,391 15,282 
Total Liabilities2,141,386 2,132,884 2,280,465 
Stockholders’ Equity:
Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding— — — 
Common stock, $2.50 par value; 20,000,000 shares authorized; 8,896,119, 8,892,374, and 8,838,720 shares issued; 8,511,453, 8,521,546, and 8,515,120 shares outstanding
22,231 22,224 22,086 
Treasury stock, at cost; 384,666, 370,828, and 323,600 shares
(10,954)(10,502)(8,927)
Additional paid-in capital97,602 96,744 96,022 
Retained earnings213,491 211,939 193,873 
Accumulated other comprehensive loss(44,909)(64,767)(58,012)
Total Stockholders’ Equity277,461 255,638 245,042 
Total Liabilities and Stockholders’ Equity$2,418,847 $2,388,522 $2,525,507 


ACNB Corporation
Press Release/2023 Fourth Quarter and 2023 Financial Results
January 25, 2024
Page 9 of 13


Consolidated Income Statements
(Unaudited)
 Three months ended December 31,Years Ended December 31,
(Dollars in thousands, except per share data)2023202220232022
INTEREST AND DIVIDEND INCOME  
Loans, including fees
Taxable$21,303 $18,820 $79,433 $68,898 
Tax-exempt336 353 1,405 1,348 
Securities:
Taxable2,534 2,697 10,985 9,799 
Tax-exempt285 526 1,168 1,144 
Dividends135 25 331 104 
Other691 2,473 3,318 5,756 
Total Interest and Dividend Income25,284 24,894 96,640 87,049 
INTEREST EXPENSE  
Deposits1,808 572 3,695 2,561 
Short-term borrowings334 17 898 77 
Long-term borrowings1,649 257 3,727 986 
Total Interest Expense3,791 846 8,320 3,624 
Net Interest Income21,493 24,048 88,320 83,425 
Provision for credit losses786 — 860 — 
Reversal of provision for unfunded commitments(242)— (16)— 
Net Interest Income after Provisions for Credit Losses and Unfunded Commitments20,949 24,048 87,476 83,425 
NONINTEREST INCOME
Insurance commissions1,948 1,870 9,319 8,307 
Service charges on deposits1,007 1,020 3,958 4,066 
Wealth management872 711 3,644 3,160 
ATM debit card charges846 867 3,348 3,322 
Gain from mortgage loans held for sale25 19 56 487 
Earnings on investment in bank-owned life insurance479 480 1,878 1,532 
Net losses on sales or calls of securities(4,501)(234)(5,240)(234)
Net gains (losses) on equity securities40 46 18 (298)
Net gain on sale of low-income housing partnership— 421 — 421 
Gain on assets held for sale— — 337 — 
Other254 223 1,127 1,044 
Total Noninterest Income970 5,423 18,445 21,807 
NONINTEREST EXPENSES  
Salaries and employee benefits10,596 9,786 40,931 35,979 
Net occupancy927 978 3,908 4,076 
Equipment1,730 2,046 6,514 6,612 
Other tax304 403 1,269 1,632 
Professional services720 758 2,320 2,086 
Supplies and postage175 193 808 823 
Marketing and corporate relations140 72 612 299 
FDIC and regulatory456 330 1,388 1,128 
Intangible assets amortization352 399 1,424 1,492 
Other 1,773 1,708 6,898 6,154 
Total Noninterest Expenses17,173 16,673 66,072 60,281 
Income Before Income Taxes4,746 12,798 39,849 44,951 
Provision for income taxes649 2,599 8,161 9,199 
Net Income$4,097 $10,199 $31,688 $35,752 
PER SHARE DATA  
Basic earnings $0.48 $1.20 $3.72 $4.15 
Diluted earnings$0.48 $1.20 $3.71 $4.15 

ACNB Corporation
Press Release/2023 Fourth Quarter and 2023 Financial Results
January 25, 2024
Page 10 of 13


Average Balances, Income and Expenses, Yields and Rates

 Three months ended December 31, 2023Three months ended September 30, 2023Three months ended
June 30, 2023		Three months ended
March 31, 2023		Three months ended December 31, 2022
(Dollars in thousands)Average
Balance		Interest7Yield/
Rate		Average
Balance
Interest7
Yield/
Rate		Average
Balance
Interest7
Yield/
Rate		Average
Balance
Interest7
Yield/
Rate		Average
Balance
Interest7
Yield/
Rate
ASSETS      
Loans:
Taxable$1,559,411 $21,303 5.42 %$1,520,134 $20,285 5.29 %$1,463,967 $18,946 5.19 %$1,454,934 $18,898 5.27 %$1,459,830 $18,821 5.11 %
Tax-exempt69,058 425 2.44 %73,995 457 2.45 %75,670 446 2.36 %77,341 451 2.36 %78,274 446 2.26 %
Total Loans1,628,469 21,728 5.29 %1,594,129 20,742 5.16 %1,539,637 19,392 5.05 %1,532,275 19,349 5.12 %1,538,104 19,267 4.97 %
Investment Securities:
Taxable453,713 2,669 2.33 %466,402 2,581 2.20 %498,401 2,739 2.20 %557,377 3,327 2.42 %542,137 2,722 1.99 %
Tax-exempt54,835 361 2.61 %55,027 359 2.59 %55,588 361 2.60 %55,589 397 2.90 %42,987 666 6.15 %
Total Investments508,548 3,030 2.36 %521,429 2,940 2.24 %553,989 3,100 2.24 %612,966 3,724 2.46 %585,124 3,388 2.30 %
Interest-bearing deposits with banks50,225 691 5.46 %53,324 723 5.38 %71,040 890 5.03 %90,987 1,014 4.52 %268,911 2,473 3.65 %
Total Earning Assets2,187,242 25,449 4.62 %2,168,882 24,405 4.46 %2,164,666 23,382 4.33 %2,236,228 24,087 4.37 %2,392,139 25,128 4.17 %
    
Total Assets$2,406,900   $2,365,365   $2,357,626 $2,439,219 $2,598,000 
LIABILITIES      
Interest-bearing demand deposits$560,510 $275 0.19 %$571,314 $185 0.13 %$577,480 $150 0.10 %$591,972 $146 0.10 %$653,369 $192 0.12 %
Money markets274,226 707 1.02 %245,899 312 0.50 %261,560 100 0.15 %298,584 73 0.10 %328,808 85 0.10 %
Savings deposits348,244 28 0.03 %366,398 30 0.03 %387,847 31 0.03 %403,419 33 0.03 %408,285 41 0.04 %
Time deposits221,778 798 1.43 %212,159 401 0.75 %224,608 205 0.37 %268,708 221 0.33 %318,115 254 0.32 %
Total Interest-Bearing Deposits1,404,758 1,808 0.51 %1,395,770 928 0.26 %1,451,495 486 0.13 %1,562,683 473 0.12 %1,708,577 572 0.13 %
Short-term borrowings56,872 334 2.33 %66,942 439 2.60 %34,080 108 1.27 %35,596 17 0.19 %41,257 17 0.16 %
Long-term borrowings137,026 1,649 4.77 %94,554 1,122 4.71 %59,901 629 4.21 %29,211 327 4.54 %22,350 257 4.56 %
Total borrowings193,898 1,983 4.06 %161,496 1,561 3.83 %93,981 737 3.15 %64,807 344 2.15 %63,607 274 1.71 %
Total Interest-Bearing Liabilities1,598,656 3,791 0.94 %1,557,266 2,489 0.63 %1,545,476 1,223 0.32 %1,627,490 817 0.20 %1,772,184 846 0.19 %
Noninterest-bearing demand deposits519,797  541,995   550,581 557,546 586,092 
Cost of Funds 0.71 % 0.47 %0.23 %0.15 %0.14 %
FTE Net Interest Margin  3.93 %  4.01 %4.11 %4.22 %4.03 %
Stockholders’ Equity266,799 259,284 259,239 251,054 236,674 
7 Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate.

ACNB Corporation
Press Release/2023 Fourth Quarter and 2023 Financial Results
January 25, 2024
Page 11 of 13


 Year Ended
December 31, 2023		Year Ended
December 31, 2022
(Dollars in thousands)Average
Balance		Interest8Yield/
Rate		Average
Balance
Interest8
Yield/
Rate
ASSETS
Loans:
Taxable$1,499,635 $79,433 5.30 %$1,428,150 $68,898 4.82 %
Tax-exempt73,993 1,778 2.40 %78,204 1,706 2.18 %
Total Loans1,573,628 81,211 5.16 %1,506,354 70,604 4.69 %
Investment Securities:
Taxable491,208 11,316 2.30 %516,126 9,799 1.90 %
Tax-exempt57,670 1,478 2.56 %53,242 1,448 2.72 %
Total Investments548,878 12,794 2.33 %569,368 11,247 1.98 %
Interest-bearing deposits with banks66,246 3,318 5.01 %427,706 5,860 1.37 %
Total Earning Assets2,188,752 97,323 4.45 %2,503,428 87,711 3.50 %
Total Assets$2,392,278 $2,720,957 
LIABILITIES
Interest-bearing demand deposits$569,357 $757 0.13 %$600,366 $749 0.12 %
Money markets283,918 1,192 0.42 %346,498 342 0.10 %
Savings deposits377,498 122 0.03 %409,839 167 0.04 %
Time deposits230,431 1,624 0.70 %370,766 1,303 0.35 %
Total Interest-Bearing Deposits1,461,204 3,695 0.25 %1,727,469 2,561 0.15 %
Short-term borrowings49,433 898 1.82 %35,882 77 0.21 %
Long-term borrowings78,262 3,727 4.76 %24,814 986 3.97 %
Total borrowings127,695 4,625 3.62 %60,696 1,063 1.75 %
Total Interest-Bearing Liabilities1,588,899 8,320 0.52 %1,788,165 3,624 0.20 %
Noninterest-bearing demand deposits543,843 609,622 
Cost of Funds0.39 %0.15 %
FTE Net Interest Margin4.07 %3.36 %
Stockholders’ Equity259,094 249,074 




8 Income on interest-earning assets has been computed on a fully taxable equivalent basis (FTE) using the 21% federal income tax statutory rate.

ACNB Corporation
Press Release/2023 Fourth Quarter and 2023 Financial Results
January 25, 2024
Page 12 of 13


Non-GAAP Reconciliation

Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.
Three Months Ended
(Dollars in thousands, except per share data)
December 31, 2023September 30, 2023June 30, 2023March 31, 2023December 31, 2022
Tangible book value per share
Stockholders’ equity$277,461 $255,638 $257,069 $255,841 $245,042 
Less: Goodwill and intangible assets(53,267)(53,619)(53,797)(54,157)(54,517)
Tangible common stockholders’ equity (numerator)$224,194 $202,019 $203,272 $201,684 $190,525 
Shares outstanding, less unvested shares, end of period (denominator)8,478,460 8,488,446 8,528,782 8,523,406 8,501,752 
Tangible book value per share$26.44 $23.80 $23.83 $23.66 $22.41 
Tangible book value per share (excluding AOCI)
Tangible common stockholders’ equity$224,194 $202,019 $203,272 $201,684 $190,525 
Less: AOCI(44,909)(64,767)(58,052)(51,960)(58,012)
Tangible equity (excluding AOCI)$269,103 $266,786 $261,324 $253,644 $248,537 
Tangible book value per share (excluding AOCI)$31.74 $31.43 $30.64 $29.76 $29.23 
Tangible common equity to tangible assets (TCE/TA Ratio)
Tangible common stockholders’ equity (numerator)$224,194 $202,019 $203,272 $201,684 $190,525 
Total assets$2,418,847 $2,388,522 $2,378,151 $2,410,933 $2,525,507 
Less: Goodwill and intangible assets(53,267)(53,619)(53,797)(54,157)(54,517)
Total tangible assets (denominator)$2,365,580 $2,334,903 $2,324,354 $2,356,776 $2,470,990 
Tangible common equity to tangible assets9.48 %8.65 %8.75 %8.56 %7.71 %
Efficiency Ratio
Noninterest expense$17,173 $16,336 $16,281 $16,282 $16,673 
Less: Intangible amortization352 352 360 360 399 
Less: Loss on MD Title Investment— — 142 — — 
Numerator$16,821 $15,984 $15,779 $15,922 $16,274 
Net interest income$21,493 $21,745 $21,990 $23,092 $24,048 
Plus: Total noninterest income970 6,297 6,194 4,984 5,423 
Less: Net losses on sales or calls of securities(4,501)— (546)(193)(234)
Less: Net gains (losses) on equity securities40 (27)(15)20 46 
Less: Gain on assets held for sale— 14 323 — — 
Less: Net gains on sale of low income housing partnership— — — — 421 
Denominator$26,924 $28,055 $28,422 $28,249 $29,238 
Efficiency ratio62.48 %56.97 %55.52 %56.36 %55.66 %



ACNB Corporation
Press Release/2023 Fourth Quarter and 2023 Financial Results
January 25, 2024
Page 13 of 13


Non-GAAP Reconciliation

Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

(Dollars in thousands)
Year Ended December 31, 2023
Year Ended
 December 31, 2022
Efficiency Ratio
Noninterest expense$66,072 $60,281 
Less: Intangible amortization1,424 1,492 
Less: Loss on MD Title Investment142 — 
Noninterest expense (numerator)$64,506 $58,789 
Net interest income$88,320 $83,425 
Plus: Total noninterest income18,445 21,807 
Less: Net losses on sales or calls of securities(5,240)(234)
Less: Net gains (losses) on equity securities18 (298)
Less: Gain on assets held for sale337 — 
Less: Net gains on sale of low income housing partnership— 421 
Total revenue (denominator)$111,650 $105,343 
Efficiency ratio57.78 %55.81 %

(Dollars in thousands)
Three Months Ended December 31, 2023
Year Ended December 31, 2023
Return on average assets (excluding the repositioning)
Net income$4,097 $31,688 
Less: Loss on repositioning of investment securities portfolio, net of tax effect(3,479)(3,479)
Net income, excluding repositioning (numerator)$7,576 $35,167 
Average assets (denominator)$2,406,900 $2,392,278 
Return on average assets (excluding the repositioning)1.25 %1.47 %
Return on average equity (excluding the repositioning)
Net income, excluding repositioning (numerator)$7,576 $35,167 
Average equity (denominator)$266,799 $259,094 
Return on average equity (excluding the repositioning)11.27 %13.57 %

v3.23.4
Cover
Jan. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 25, 2024
Entity Registrant Name ACNB Corporation
Entity Incorporation, State or Country Code PA
Entity File Number 1-35015
Entity Tax Identification Number 23-2233457
Entity Address, Address Line One 16 Lincoln Square
Entity Address, City or Town Gettysburg
Entity Address, State or Province PA
Entity Address, Postal Zip Code 17325
City Area Code 717
Local Phone Number 334.3161
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, $2.50 par value per share
Trading Symbol ACNB
Security Exchange Name NASDAQ
Amendment Flag false
Entity Central Index Key 0000715579
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