Slide 1: ACNB Corporation Investor Presentation Second Quarter of 2024
A C N B C O R P O R A T I O N Investor Presentation Second Quarter of 2024 Nasdaq: ACNB investor.acnb.com
Slide 2: Important Information
2 | Investor Presentation Important Information • ACNB Corporation (Nasdaq: ACNB) (“ACNB” or the “Corporation”) is the financial holding company for ACNB Bank (“ACNB Bank” or the “Bank”) and ACNB Insurance Services, Inc. (“ACNB Insurance Services,” “ACNB Insurance” or “Insurance Services”). • This p
Slide 3: Corporate Profile
3 | Investor Presentation Corporate Profile Mid-Atlantic commercial bank holding company for ACNB Bank and ACNB Insurance Services, which serve businesses and communities in Pennsylvania and Maryland, including those in the Gettysburg region, its surrounding counties, and the Greater Baltimore area.
Slide 4: Investment highlights
4 | Investor Presentation Experienced Management Team • Proven management team with many years of experience • Approximately 250 years of combined experience Commercially Focused Loan Portfolio • Commercial loans/total loans* ratio of approximately 70% • Average commercial loan yield of 5.62%* • LPO
Slide 5: Experienced Management Team
5 | Investor Presentation Experienced Management Team James P. Helt President & Chief Executive Officer . 35 years In financial services 16 years At ACNB Mark Blacksten EVP, Maryland Market President 34 years In financial services 1 year At ACNB Brett D. Fulk EVP, Chief Strategy Officer 33 years In
Slide 6: Commercially Focused Loan Portfolio
6 | Investor Presentation ~70% Commercial† Commercially Focused Loan Portfolio • 210.5% CRE loans/total RBC* • 30.1% construction loans/total RBC* • 39.1% owner-occupied/total CRE, multifamily and farm • 5.62% average yield on commercial loans** • Long-term growth opportunities o LPOs in Hunt Valley
Slide 7: Stable and Low-Cost Deposit Base
7 | Investor Presentation Stable and Low-Cost Deposit Base • 9.9% of bank deposits associated with top 20 unrelated relationships • 81.3% of all bank deposits FDIC insured and/or collateralized o Average deposit account balance <$25,000 • ~61.3% deposit market share in Adams County and strong market
Slide 8: Commitment to Noninterest Income to Diversify Revenue
8 | Investor Presentation Commitment to Noninterest Income to Diversify Revenue • Linked quarter increase driven primarily by increases in insurance commissions, due to timing of policy renewals and contingent commissions received, and wealth management driven primarily by market appreciation and ne
Slide 9: Fee-Generating Offerings
9 | Investor Presentation Fee-Generating Offerings All dollar amounts in thousands. * Income from fiduciary, investment management and brokerage activities. ** Non-GAAP financial measure ; Refer to the calculation on the pages titled “Reconciliation of Non-GAAP Measures” at the end of this presentat
Slide 10: Focus on Expense Management
10 | Investor Presentation Focus on Expense Management * Non-GAAP financial measure ; Refer to the calculation on the pages titled “Reconciliation of Non-GAAP Measures” at the end of this presentation. • Year-over-year increase driven primarily by an increase to salaries and employee benefits partia
Slide 11: Branch Network Productivity
11 | Investor Presentation Branch Network Productivity • ~21% reduction in net branch count since the end of 2020 to 26 locations o Consolidated eight full-service locations since the end of 2020, including six in 2022 • Opened one new full-service location in 2022 o New floorplan designed to suppor
Slide 12: Strong Profitability in Tough Operating Environment
12 | Investor Presentation Strong Profitability in Tough Operating Environment • 2Q24 impacted by approximately $3.2 million reversal of the provision for credit losses and unfunded commitments R O A A R O A E N IM EP S 1.62% 1.52% 0.68% 1.12% 1.86% 2Q23 3Q23 4Q23 1Q24 2Q24 Return on Average Assets
Slide 13: Actively Managing Strong Capital Position
13 | Investor Presentation Actively Managing Strong Capital Position • Practices reflect ACNB’s ongoing and long-term commitment to maximizing shareholder value o Repurchased 65,266 common shares since the end of 2022 o Increased dividend to $0.32 in 2Q24 from $0.28 in 2Q23 • Disciplined acquisition
Slide 14: Strategic Acquisition of Traditions Bancorp, Inc.
14 | Investor Presentation Strategic Acquisition of Traditions Bancorp, Inc. In-Market Combination Strengthening York Franchise • Strategic in-market combination, enhancing ACNB’s presence in South-Central, PA • Creates the largest community bank in Pennsylvania with less than $5 billion in total as
Slide 15: Ample Liquidity Position
15 | Investor Presentation Ample Liquidity Position • Actively monitoring, managing and projecting our liquidity needs to minimize our liquidity risk o Liquidity monitored daily • Stable, durable and relationship-based core deposits continue to be ACNB Bank’s primary source of liquidity o 91.4% loan
Slide 16: Stable Asset Quality
16 | Investor Presentation Stable Asset Quality • Committed to sound credit risk management, including conservative and disciplined underwriting practices, timely credit administration process and proactive customer relationship management All dollar amounts in thousands; non-performing loans consis
Slide 17: Appendix
17 | Investor Presentation Appendix
Slide 18: Diversified Loan Portfolio
18 | Investor Presentation $744,626 $786,255 $821,691 $898,708 $950,086 $181,438 $161,025 $178,905 $148,833 $145,870 $59,251 $52,450 $83,283 $84,340 $89,780 $104,610 $92,763 $84,142 $91,034 $85,644 $407,025 $348,868 $359,378 $395,482 $400,358$18,541 $1,648,818 $1,470,620 $1,538,733 $1,628,268 $1,681
Slide 19: CRE Breakdown
19 | Investor Presentation Apartments 5.7% Hotel/Motel/B&B 10.1% Office Complex 10.3% Rental Units - Retail/Mixed Use/Commercial 15.1% Other Real Estate 5.4% Strip Mall 4.2% Warehouse 5.3% Restaurant 3.3% Farming 5.9% Retail 2.7% Manufacturers 4.7% Non-Profit 4.6% Service Industry 6.6% Other 16.1% C
Slide 20: Reconciliation of Non-GAAP Measures
20 | Investor Presentation This presentation contains financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). The Corporation has presented the following non-GAAP financial measures because it believes that these me
Slide 21: Reconciliation of Non-GAAP Measures
21 | Investor Presentation Reconciliation of Non-GAAP Measures 21 Source: Company data from public filings and internal documents. $ in 000's, except per share amounts 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Tangible book value per share Stockholders' equity $257,069 $255,638 $277,461 $27
Slide 22: Reconciliation of Non-GAAP Measures
22 | Investor Presentation Reconciliation of Non-GAAP Measures 22 $ in 000's 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Efficiency Ratio Non-interest expense $16,281 $16,336 $17,173 $17,662 $16,391 Less: Intangible amortization $360 $352 $352 $321 $315 Less: Loss on MD Title Investment $142
Slide 23: Reconciliation of Non-GAAP Measures
23 | Investor Presentation Reconciliation of Non-GAAP Measures 23 $ in 000's 2019 2020 2021 2022 2023 Noninterest income/revenue Noninterest Income $18,169 $20,090 $22,776 $21,807 $18,445 Less: Gain on life insurance proceeds $0 $0 $101 $0 $0 Less: Net (losses) gains on sales or calls of securities
Slide 24: ACNB Corporation Investor Relations Contact
24 | Investor Presentation ACNB Corporation Investor Relations Contact Jason H. Weber Executive Vice President, Treasurer & Chief Financial Officer ACNB Corporation 16 Lincoln Square Gettysburg, PA 17325 investor.relations@acnb.com 717-339-5090 Investor Presentation