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ACNB Corporation Reports Record 2026 Second Quarter Financial Results
ACNB Corporation Reports Record 2026 Second Quarter Financial
About this update from Acnb Corporation
GETTYSBURG, Pa. , July 23, 2026 (GLOBE NEWSWIRE) -- ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc. , announced net income of $15.2 million , or $1.49 diluted earnings per share, for the three months ended June 30, 2026 compared to net income of $13.7 million , or $1.32 diluted earnings per share, for the three months ended March 31, 2026 and compared to net income of $11.6 million , or $1.11 diluted earnings per share, for the three months ended June 30, 2025 . The financial results for the three months ended June 30, 2025 were impacted by after-tax merger-related expenses of $1.5 million related to the acquisition of Traditions Bancorp, Inc. which was completed on February 1, 2025 (“Acquisition”). 2026 Second Quarter Highlights Return on average assets was 1.85% and return on average equity was 14.54% for the three months ended June 30, 2026 Fully taxable equivalent (“FTE”) net interest margin was 4.56% for the three months ended June 30, 2026 compared to 4.46% for the three months ended March 31, 2026 and 4.21% for the three months ended June 30, 2025 Total loans outstanding were $2.40 billion at June 30, 2026 , an increase of 2.1% from March 31, 2026 ; equating to an annualized growth rate of 8.6% Total noninterest-bearing deposits were $600.7 million at June 30, 2026 , an increase of 4.3% from March 31, 2026 ; equating to an annualized growth rate of 18.3% Tangible common equity to tangible assets ratio1 of 10.47% at June 30, 2026 compared to 10.67% at March 31, 2026 and 9.65% at June 30, 2025 ACNB repurchased 179,407 shares of ACNB common stock in open market transactions during the three months ended June 30, 2026 at a weighted average price of $50.79 per share. There are 253,692 shares remaining in the current plan ACNB paid a regular quarterly cash dividend of $0.42 during the three months ended June 30, 2026 , a 10.5% increase, or $0.04 , over the $0.38 cash dividend paid during the three months ended March 31, 2026 , and a 23.5% increase over the $0.34 paid during the three months ended June 30, 2025 . In addition to the regular dividend, ACNB paid a one-time special cash dividend of $0.50 per share during the three months ended June 30, 2026 “Our record setting second quarter performance reflects the successful execution of our strategic priorities and the strength of our balanced business model. Record earnings, strong loan production, stable asset quality, and robust noninterest-bearing deposit growth demonstrate the resilience of our franchise and our ability to deliver consistent value for our shareholders,” said James P. Helt , ACNB Corporation President and Chief Executive Officer. “During the quarter, we were pleased to increase our regular quarterly cash dividend, declare a special dividend and continue our share repurchase program, reflecting both our strong financial position and confidence in the long-term outlook for the Company. These results are driven by the exceptional commitment of our employees, whose focus on serving our customers and communities continues to differentiate our organization. Their dedication to executing our strategic plan enables us to deepen customer relationships, capitalize on growth opportunities, and strengthen our competitive position.” Mr. Helt continued, “As we look ahead, we remain committed to disciplined growth, prudent risk management, and delivering sustainable long-term shareholder value while advancing our vision of being the financial provider of choice in the markets we serve.” _______________ 1 Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document. Net Interest Income and Margin Net interest income for the three months ended June 30, 2026 totaled $34.0 million , an increase of $1.5 million from the three months ended March 31, 2026 and an increase of $3.0 million from the three months ended June 30, 2025 . The increases were 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 quarter compared to the same quarter in the prior year 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 $1.8 million , $1.9 million and $2.2 million for the three months ended June 30, 2026 , the three months ended March 31, 2026 and the three months ended June 30, 2025 , respectively. Three Months Ended June 2026 vs. March 2026 Variance June 2026 vs. June 2025 Variance June 30, 2026 March 31, 2026 June 30, 2025 (Dollars in thousands) Average Balance Yield/ Rate Average Balance Yield/ Rate Average Balance Yield/ Rate Average Balance Yield/ Rate Average Balance Yield/ Rate ASSETS Total Loans 1 $ 2,401,287 6.40 % $ 2,346,807 6.35 % $ 2,355,332 6.29 % $ 54,480 0.05 % $ 45,955 0.11 % Total Investments 2 546,267 3.68 550,257 3.66 537,194 2.95 (3,990 ) 0.02 9,073 0.73 Total Earning Assets 3,003,725 5.86 2,973,833 5.78 2,969,874 5.64 29,892 0.08 33,851 0.22 Total Assets 3,289,674 3,255,013 3,258,512 34,661 31,162 LIABILITIES Total Interest-Bearing Deposits $ 1,951,477 1.36 % $ 1,914,287 1.35 % $ 1,965,483 1.49 % $ 37,190 0.01 % $ (14,006 ) (0.13 )% Noninterest-bearing demand deposits 583,453 554,591 563,321 28,862 20,132 Total Borrowings 288,304 4.27 318,442 4.24 299,862 4.39 (30,138 ) 0.03 (11,558 ) (0.12 ) Total Interest-Bearing Liabilities 2,239,781 1.73 2,232,729 1.77 2,265,345 1.87 7,052 (0.04 ) (25,564 ) (0.14 ) Total Liabilities and Stockholders’ Equity 3,289,674 3,255,013 3,258,512 34,661 31,162 FTE Net Interest Margin 4.56 % 4.46 % 4.21 % 0.10 % 0.35 % Three months ended June 30, 2026 compared to three months ended March 31, 2026 The FTE net interest margin increased 10 basis points from the three months ended March 31, 2026 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. Average loan balances increased $54.5 million , driven primarily by growth in the commercial real estate portfolio The yields on average loans and average investment securities increased 5 and 2 basis points, respectively, driven primarily by new loans and investment securities funded during the quarter at higher rates than those that paid off or matured Average noninterest-bearing deposits increased $28.9 million driven primarily by promotional incentives on commercial checking accounts Three months ended June 30, 2026 compared to three months ended June 30, 2025 The FTE net interest margin increased 35 basis points from the three months ended June 30, 2025 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 repositioning of the investment securities portfolio completed during the three months ended December 31, 2025 contributed to higher yields. Average loan balances increased $46.0 million driven primarily by growth in the commercial real estate portfolio The yields on average loans and average investment securities increased 11 and 73 basis points, respectively, driven primarily by new loans and investment securities funded during the quarter at higher rates than those that paid off or matured and the repositioning of the investment securities portfolio completed during the three months ended December 31, 2025 Average noninterest-bearing deposits increased $20.1 million driven primarily by promotional incentives on commercial checking accounts Average interest-bearing deposits decreased $14.0 million primarily as a result of attrition of higher cost money market deposits from the Acquisition _______________ 1 Average balances include non-accrual loans and are net of unearned income. 2 Average balances of investment securities is computed at fair value. Noninterest Income Three Months Ended June 2026 vs. March 2026 Variance June 2026 vs. June 2025 Variance (In thousands) June 30 , 2026 March 31 , 2026 June 30 , 2025 $ % $ % Insurance commissions $ 2,991 $ 2,128 $ 2,908 $ 863 40.6 % $ 83 2.9 % Gain from mortgage loans held for sale 1,463 1,226 1,575 237 19.3 (112 ) (7.1 ) Service charges on deposits 1,243 1,235 1,179 8 0.6 64 5.4 Wealth management 1,191 1,160 1,090 31 2.7 101 9.3 ATM debit card charges 933 906 905 27 3.0 28 3.1 Earnings on investment in bank-owned life insurance 756 737 627 19 2.6 129 20.6 Gain on assets held for sale — 177 — (177 ) (100.0 ) — — Gain on life insurance proceeds — 174 31 (174 ) (100.0 ) (31 ) (100.0 ) Other 245 489 342 (244 ) (49.9 ) (97 ) (28.4 ) Net gains on sales or calls of investment securities — 49 22 (49 ) (100.0 ) (22 ) (100.0 ) Net (losses) gain on equity securities (4 ) (7 ) 3 3 (42.9 ) (7 ) (233.3 ) Total Noninterest Income $ 8,818 $ 8,274 $ 8,682 $ 544 6.6 % $ 136 1.6 % Explanations for the more significant fluctuations by period and category are detailed below: Three months ended June 30, 2026 compared to three months ended March 31, 2026 The increase in insurance commissions was driven primarily by an increase in contingent commission income received during the three months ended June 30, 2026 related to 2025 performance, and, to a lesser extent, new business underwriting and timing of policy renewals The increase in gain from mortgage loans held for sale was driven primarily by seasonally higher loan origination volume in the current quarter The decrease in gain on assets held for sale was the result of the sale of a building in the prior quarter The decrease in gain on life insurance proceeds was the result of a death benefit received in the prior quarter The decrease in other was driven primarily by a gain on a loan participation in the prior quarter Three months ended June 30, 2026 compared to three months ended June 30, 2025 The increase in wealth management was driven primarily by assets under management growth due to new business generation and positive market impacts The increase in earnings on investment in bank-owned life insurance was driven primarily by the purchase of new policies in the fourth quarter of 2025 The decrease in other was primarily attributable to lower credit card processing and letter of credit fees Noninterest Expense Three Months Ended June 2026 vs. March 2026 Variance June 2026 vs. June 2025 Variance (In thousands) June 30 , 2026 March 31 , 2026 June 30 , 2025 $ % $ % Salaries and employee benefits $ 13,761 $ 14,027 $ 13,693 $ (266 ) (1.9 )% $ 68 0.5 % Equipment 2,552 2,600 2,539 (48 ) (1.8 ) 13 0.5 Net occupancy 1,209 1,533 1,277 (324 ) (21.1 ) (68 ) (5.3 ) Intangible assets amortization 1,028 1,056 1,141 (28 ) (2.7 ) (113 ) (9.9 ) Professional services 736 678 743 58 8.6 (7 ) (0.9 ) Other tax 317 577 220 (260 ) (45.1 ) 97 44.1 FDIC and regulatory 459 442 435 17 3.8 24 5.5 Merger-related — — 1,943 — — (1,943 ) (100.0 ) Other 3,063 2,702 3,375 361 13.4 (312 ) (9.2 ) Total Noninterest Expense $ 23,125 $ 23,615 $ 25,366 $ (490 ) (2.1 )% $ (2,241 ) (8.8 )% Explanations for the more significant fluctuations by period and category are detailed below: Three months ended June 30, 2026 compared to three months ended March 31, 2026 The decrease in salaries and employee benefits was driven primarily by seasonal expenses related to incentive stock awards and ACNB’s liability for unused vacation days in the prior quarter The decrease in net occupancy was driven primarily by seasonally higher snow removal charges and utility expenses in the prior quarter The decrease in other tax was driven primarily by earned income tax credits received in the current quarter as a result of community investment contributions The increase in other was driven primarily by the community investment contributions Three months ended June 30, 2026 compared to three months ended June 30, 2025 The decrease in intangible assets amortization was the result of normal attrition The increase in other tax was driven primarily by asset growth due to the Acquisition The decrease in other was driven primarily by the write-off of stale conversion related items in the prior year The decrease in merger-related was driven by the lack of Acquisition related expenses in the current period Loans and Asset Quality Variance (In thousands) June 30, 2026 March 31, 2026 June 30, 2025 June 2026 vs. March 2026 June 2026 vs. June 2025 Loans Commercial real estate $ 1,333,050 $ 1,301,807 $ 1,254,733 $ 31,243 $ 78,317 Residential mortgage 602,738 602,305 594,889 433 7,849 Commercial and industrial 217,151 204,714 226,276 12,437 (9,125 ) Home equity lines of credit 122,164 126,473 122,546 (4,309 ) (382 ) Real estate construction 115,091 106,128 135,023 8,963 (19,932 ) Consumer 10,105 9,864 10,253 241 (148 ) Gross loans 2,400,299 2,351,291 2,343,720 49,008 56,579 Unearned income (2,195 ) (2,046 ) (1,904 ) (149 ) (291 ) Total loans, net of unearned income $ 2,398,104 $ 2,349,245 $ 2,341,816 $ 48,859 $ 56,288 Allowance for credit losses $ 24,006 $ 23,615 $ 24,353 $ 391 $ (347 ) June 30, 2026 compared to March 31, 2026 The $48.9 million increase in total loans from March 31, 2026 was driven primarily by Commercial real estate growth of $31.2 million , driven primarily by farmland ( $31.1 million ) and owner-occupied balances ( $12.5 million ), partially offset by a decline in non-owner occupied balances ( $11.0 million ) Commercial and industrial growth of $12.4 million , driven primarily by three new relationships in the Lancaster and Berks regions Real estate construction growth of $9.0 million , driven primarily by residential construction and the funding of commitments The allowance for credit losses was $24.0 million , an increase of $391 thousand driven primarily by loan growth Total non-performing loans to total loans, net of unearned income were 0.41% in both quarters June 30, 2026 compared to June 30, 2025 The increase in total loans of $56.3 million was driven primarily by commercial real estate growth of $78.3 million concentrated in farmland ( $49.7 million ), multi-family ( $29.9 million ) and owner-occupied balances ( $18.0 million ), partially offset by a decline in non-owner occupied balances ( $21.2 million ) The allowance for credit losses decreased by $347 thousand driven primarily by the paydown of loans with specific reserves Total non-performing loans to total loans, net of unearned income was 0.41% compared to 0.43% Deposits Variance (In thousands) June 30, 2026 March 31, 2026 June 30, 2025 June 2026 vs. March 2026 June 2026 vs. June 2025 Noninterest-bearing demand deposits $ 600,711 $ 576,056 $ 568,301 $ 24,655 $ 32,410 Interest-bearing demand deposits 636,551 625,363 604,854 11,188 31,697 Money market 481,015 497,031 531,738 (16,016 ) (50,723 ) Savings 336,504 338,763 339,179 (2,259 ) (2,675 ) Total demand and savings 2,054,781 2,037,213 2,044,072 17,568 10,709 Time 480,895 488,559 480,469 (7,664 ) 426 Total deposits $ 2,535,676 $ 2,525,772 $ 2,524,541 $ 9,904 $ 11,135 June 30, 2026 compared to March 31, 2026 The increase in noninterest-bearing demand deposits was driven primarily by promotional incentives on commercial checking accounts The increase in interest-bearing demand deposits was driven primarily by an influx of seasonal deposits The decrease in money market balances was driven primarily by attrition of higher cost money market deposits from the Acquisition The decrease in time deposits was driven primarily by the pay down of $14.1 million of brokered deposits partially offset by growth in retail time deposits June 30, 2026 compared to June 30, 2025 The increase in noninterest-bearing demand deposits was driven primarily by promotional incentives on commercial checking accounts The increase in interest-bearing demand deposits was driven primarily by growth in commercial and retail balances and accounts due to new customer relationships acquired through promotional incentives The decrease in money market balances was driven primarily by attrition of higher cost money market deposits from the Acquisition Borrowings Total borrowings were $323.1 million at June 30, 2026 , an increase of $43.9 million and $24.7 million compared to March 31, 2026 and June 30, 2025 , respectively. The increases were to fund loan growth. Stockholders’ Equity Total stockholders’ equity was $423.3 million at June 30, 2026 compared to $425.5 million at March 31, 2026 and $395.2 million at June 30, 2025 . The decrease at June 30, 2026 compared to March 31, 2026 was driven primarily by dividends paid of $9.3 million and common stock repurchases of $9.2 million , partially offset by net income of $15.2 million . The increase at June 30, 2026 compared to June 30, 2025 was driven primarily by growth in retained earnings and changes in unrealized losses in available for sale investment securities. Tangible book value1 per share was $33.42 , $32.99 and $29.30 at June 30, 2026 , March 31, 2026 and June 30, 2025 , respectively. _______________ 1 Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document. About ACNB Corporation ACNB Corporation, headquartered in Gettysburg, PA, is the independent $3.32 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, including its operating divisions Traditions Bank and Traditions Mortgage, 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 33 community banking offices and two loan offices located in the Pennsylvania counties of Adams, Berks, 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 46 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, 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 Quarterly Report on Form 10-Q 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 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 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. Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of the Corporation's consolidated financial statements when filed with the SEC. Accordingly, the financial information in this announcement is subject to change. 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 #2026-10 July 23, 2026 ACNB Corporation Financial Highlights Selected Financial Data by Respective Quarter End (Unaudited) (Dollars in thousands, except per share data) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 BALANCE SHEET DATA Total assets $ 3,318,863 $ 3,269,864 $ 3,228,126 $ 3,250,838 $ 3,259,528 Investment securities 529,774 535,760 531,131 526,570 520,758 Total loans, net of unearned income 2,398,104 2,349,245 2,330,514 2,336,605 2,341,816 Allowance for credit losses (24,006 ) (23,615 ) (23,672 ) (23,660 ) (24,353 ) Deposits 2,535,676 2,525,772 2,450,185 2,465,896 2,524,541 Allowance for unfunded commitments 1,711 1,818 1,831 1,384 1,529 Borrowings 323,143 279,215 320,116 335,833 298,395 Stockholders’ equity 423,279 425,476 419,974 408,642 395,151 INCOME STATEMENT DATA Interest and dividend income $ 43,685 $ 42,232 $ 42,856 $ 42,490 $ 41,576 Interest expense 9,683 9,717 10,005 10,353 10,564 Net interest income 34,002 32,515 32,851 32,137 31,012 Provision for (reversal of) credit losses 554 (76 ) 106 (584 ) (228 ) (Reversal of) provision for unfunded commitments (107 ) (13 ) 447 (145 ) (354 ) Net interest income after provision for (reversal of) credit losses and unfunded commitments 33,555 32,604 32,298 32,866 31,594 Noninterest income 8,818 8,274 4,332 8,411 8,682 Noninterest expenses 23,125 23,615 23,453 22,361 25,366 Income before income taxes 19,248 17,263 13,177 18,916 14,910 Income tax expense 4,034 3,560 2,372 4,046 3,262 Net income $ 15,214 $ 13,703 $ 10,805 $ 14,870 $ 11,648 PROFITABILITY RATIOS Total loans, net of unearned income to deposits 94.57 % 93.01 % 95.12 % 94.76 % 92.76 % Return on average assets (annualized) 1.85 1.71 1.30 1.80 1.43 Return on average equity (annualized) 14.54 12.97 10.31 14.66 11.96 Efficiency ratio 1 51.60 55.84 53.39 51.96 56.21 FTE Net interest margin 4.56 4.46 4.36 4.27 4.21 Yield on average earning assets 5.86 5.78 5.69 5.64 5.64 Yield on investment securities 3.68 3.66 3.17 3.03 2.95 Yield on total loans 6.40 6.35 6.33 6.29 6.29 Cost of funds 1.38 1.41 1.40 1.45 1.50 PER SHARE DATA Diluted earnings per share $ 1.49 $ 1.32 $ 1.04 $ 1.42 $ 1.11 Cash dividends paid per share 0.92 0.38 0.38 0.34 0.34 Tangible book value per share 1 33.42 32.99 32.22 30.87 29.30 CAPITAL RATIOS 2 Tier 1 leverage ratio 11.55 % 11.74 % 11.40 % 11.22 % 10.97 % Common equity tier 1 ratio 14.49 14.92 14.74 14.45 13.96 Tier 1 risk based capital ratio 14.71 15.14 14.96 14.67 14.17 Total risk based capital ratio 16.25 16.73 16.54 16.22 15.75 CREDIT QUALITY Net charge-offs (recoveries) to average loans outstanding (annualized) 0.03 % (0.00 )% 0.02 % 0.02 % 0.01 % Total non-performing loans to total loans, net of unearned income 3 0.41 0.41 0.46 0.43 0.43 Total non-performing assets to total assets 4 0.31 0.29 0.33 0.31 0.31 Allowance for credit losses to total loans, net of unearned income 1.00 1.01 1.02 1.01 1.04 _______________ 1 Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document. 2 Regulatory capital ratios as of June 30, 2026 are preliminary. 3 Non-performing loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest. 4 Non-performing assets consists of non-performing loans and foreclosed assets held for resale. Consolidated Statements of Condition (Unaudited) (Dollars in thousands, except per share data) June 30, 2026 March 31, 2026 June 30, 2025 ASSETS Cash and due from banks $ 27,995 $ 25,649 $ 32,834 Interest-bearing deposits with banks 53,840 67,986 70,275 Total Cash and Cash Equivalents 81,835 93,635 103,109 Equity securities with readily determinable fair values 938 942 936 Investment securities available for sale, at estimated fair value 466,216 471,659 455,317 Investment securities held to maturity, at amortized cost (fair value $56,576 , $56,248 and $56,420 ) 62,620 63,159 64,505 Loans held for sale 33,528 15,155 16,455 Total loans, net of unearned income 2,398,104 2,349,245 2,341,816 Less: Allowance for credit losses (24,006 ) (23,615 ) (24,353 ) Loans, net 2,374,098 2,325,630 2,317,463 Premises and equipment, net 27,982 30,373 31,581 Right of use asset 3,920 4,053 4,657 Restricted investment in bank stocks 14,290 12,574 13,533 Investment in bank-owned life insurance 106,423 105,667 96,104 Investments in low-income housing partnerships 689 720 814 Goodwill 64,449 64,449 64,449 Intangible assets, net 20,351 21,379 24,694 Assets held for sale 2,346 — — Other assets 59,178 60,469 65,911 Total Assets $ 3,318,863 $ 3,269,864 $ 3,259,528 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Noninterest-bearing $ 600,711 $ 576,056 $ 568,301 Interest-bearing 1,934,965 1,949,716 1,956,240 Total Deposits 2,535,676 2,525,772 2,524,541 Short-term borrowings 108,259 63,828 43,041 Long-term borrowings 214,884 215,387 255,354 Lease liability 4,218 4,352 4,946 Allowance for unfunded commitments 1,711 1,818 1,529 Other liabilities 30,836 33,231 34,966 Total Liabilities 2,895,584 2,844,388 2,864,377 Stockholders’ Equity: Preferred Stock, $2.50 par value, 20,000,000 shares authorized; no shares outstanding at June 30, 2026 , March 31, 2026 and June 30, 2025 — — — Common stock, $2.50 par value, 40,000,000, 20,000,000, and 20,000,000 shares authorized; 11,079,210, 11,068,063, and 11,017,121 shares issued; 10,169,930, 10,338,190, and 10,478,149 shares outstanding at June 30,2026 , March 31, 2026 and June 30, 2025 , respectively 27,692 27,664 27,539 Treasury stock, at cost, 909,280, 729,873, and 538,972 at June 30, 2026 , March 31, 2026 , and June 30, 2025 , respectively (35,114 ) (25,927 ) (17,167 ) Additional paid-in capital 181,107 180,132 178,553 Retained earnings 272,965 267,066 239,077 Accumulated other comprehensive loss (23,371 ) (23,459 ) (32,851 ) Total Stockholders’ Equity 423,279 425,476 395,151 Total Liabilities and Stockholders’ Equity $ 3,318,863 $ 3,269,864 $ 3,259,528 Consolidated Income Statements (Unaudited) Three Months Ended June 30 , Six Months Ended June 30 , (Dollars in thousands, except per share data) 2026 2025 2026 2025 INTEREST AND DIVIDEND INCOME Loans, including fees: Taxable $ 37,883 $ 36,555 $ 74,185 $ 68,231 Tax-exempt 349 317 687 609 Investment securities: Taxable 4,343 3,283 8,584 6,185 Tax-exempt 320 283 634 571 Dividends 266 307 600 647 Other 524 831 1,227 1,623 Total Interest and Dividend Income 43,685 41,576 85,917 77,866 INTEREST EXPENSE Deposits 6,614 7,284 13,001 13,280 Short-term borrowings 552 341 1,115 635 Long-term borrowings 2,517 2,939 5,284 5,849 Total Interest Expense 9,683 10,564 19,400 19,764 Net Interest Income 34,002 31,012 66,517 58,102 Provision for (reversal of) credit losses 554 (228 ) 478 5,740 Reversal of provision for unfunded commitments (107 ) (354 ) (120 ) (834 ) Net Interest Income after Provision for (Reversal of) Credit Losses and Unfunded Commitments 33,555 31,594 66,159 53,196 NONINTEREST INCOME Insurance commissions 2,991 2,908 5,119 5,055 Gain from mortgage loans held for sale 1,463 1,575 2,689 2,430 Service charges on deposits 1,243 1,179 2,478 2,273 Wealth management 1,191 1,090 2,351 2,150 ATM debit card charges 933 905 1,839 1,736 Earnings on investment in bank-owned life insurance 756 627 1,493 1,207 Gain on assets held for sale — — 177 — Gain on life insurance proceeds — 31 174 285 Other 245 342 734 691 Net gains on sales or calls of investment securities — 22 49 22 Net (losses) gains on equity securities (4 ) 3 (11 ) 17 Total Noninterest Income 8,818 8,682 17,092 15,866 NONINTEREST EXPENSES Salaries and employee benefits 13,761 13,693 27,788 26,554 Equipment 2,552 2,539 5,152 4,819 Net occupancy 1,209 1,277 2,742 2,719 Intangible assets amortization 1,028 1,141 2,084 1,998 Professional services 736 743 1,414 1,320 Other tax 317 220 894 747 FDIC and regulatory 459 435 901 836 Merger-related — 1,943 — 9,974 Other 3,063 3,375 5,765 5,734 Total Noninterest Expenses 23,125 25,366 46,740 54,701 Income Before Income Taxes 19,248 14,910 36,511 14,361 Income tax expense 4,034 3,262 7,594 2,985 Net Income $ 15,214 $ 11,648 $ 28,917 $ 11,376 PER SHARE DATA Basic earnings $ 1.50 $ 1.11 $ 2.82 $ 1.12 Diluted earnings $ 1.49 $ 1.11 $ 2.81 $ 1.12 Weighted average shares basic 10,170,860 10,451,469 10,259,205 10,130,666 Weighted average shares diluted 10,212,225 10,487,519 10,288,802 10,157,331 Average Balances, Income and Expenses, Yields and Rates Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 (Dollars in thousands) Average Balance Interest 1 Yield/ Rate Average Balance Interest 1 Yield/ Rate Average Balance Interest 1 Yield/ Rate Average Balance Interest 1 Yield/ Rate Average Balance Interest 1 Yield/ Rate ASSETS Loans: Taxable $ 2,345,905 $ 37,883 6.48 % $ 2,290,463 $ 36,302 6.43 % $ 2,305,296 $ 37,293 6.42 % $ 2,298,054 $ 36,961 6.38 % $ 2,296,429 $ 36,555 6.38 % Tax-exempt 55,382 442 3.20 56,344 428 3.08 58,740 434 2.93 58,587 410 2.78 58,903 401 2.73 Total Loans 2 2,401,287 38,325 6.40 2,346,807 36,730 6.35 2,364,036 37,727 6.33 2,356,641 37,371 6.29 2,355,332 36,956 6.29 Investment Securities : Taxable 490,321 4,609 3.77 494,221 4,575 3.75 480,987 3,900 3.22 485,309 3,762 3.08 482,933 3,590 2.98 Tax-exempt 55,946 405 2.90 56,036 397 2.87 54,518 376 2.74 53,165 356 2.66 54,261 358 2.65 Total Investments 3 546,267 5,014 3.68 550,257 4,972 3.66 535,505 4,276 3.17 538,474 4,118 3.03 537,194 3,948 2.95 Interest-bearing deposits with banks 56,171 524 3.74 76,769 703 3.71 101,846 1,023 3.99 103,290 1,162 4.46 77,348 831 4.31 Total Earning Assets 3,003,725 43,863 5.86 2,973,833 42,405 5.78 3,001,387 43,026 5.69 2,998,405 42,651 5.64 2,969,874 41,735 5.64 Cash and due from banks 25,827 24,482 25,686 26,709 25,610 Premises and equipment 28,757 30,611 31,297 31,514 32,019 Other assets 254,925 249,769 250,508 245,899 255,624 Allowance for credit losses (23,560 ) (23,682 ) (23,646 ) (24,312 ) (24,615 ) Total Assets $ 3,289,674 $ 3,255,013 $ 3,285,232 $ 3,278,215 $ 3,258,512 LIABILITIES Interest-bearing demand deposits $ 650,258 $ 595 0.37 % $ 616,311 $ 460 0.30 % $ 633,593 $ 545 0.34 % $ 616,565 $ 570 0.37 % $ 612,812 $ 514 0.34 % Money markets 489,449 2,266 1.86 489,957 2,227 1.84 491,932 2,322 1.87 510,655 2,530 1.97 536,755 2,706 2.02 Savings deposits 335,451 26 0.03 335,398 26 0.03 331,309 27 0.03 335,083 26 0.03 342,327 27 0.03 Time deposits 476,319 3,727 3.14 472,621 3,674 3.15 454,083 3,653 3.19 454,625 3,746 3.27 473,589 4,037 3.42 Total Interest-Bearing Deposits 1,951,477 6,614 1.36 1,914,287 6,387 1.35 1,910,917 6,547 1.36 1,916,928 6,872 1.42 1,965,483 7,284 1.49 Short-term borrowings 73,266 552 3.02 74,562 563 3.06 69,326 491 2.81 70,389 513 2.89 44,515 341 3.07 Long-term borrowings 215,038 2,517 4.69 243,880 2,767 4.60 255,369 2,967 4.61 255,358 2,968 4.61 255,347 2,939 4.62 Total Borrowings 288,304 3,069 4.27 318,442 3,330 4.24 324,695 3,458 4.23 325,747 3,481 4.24 299,862 3,280 4.39 Total Interest-Bearing Liabilities 2,239,781 9,683 1.73 2,232,729 9,717 1.77 2,235,612 10,005 1.78 2,242,675 10,353 1.83 2,265,345 10,564 1.87 Noninterest-bearing demand deposits 583,453 554,591 592,956 593,800 563,321 Other liabilities 46,848 39,174 40,963 39,397 39,271 Stockholders’ Equity 419,592 428,519 415,701 402,343 390,575 Total Liabilities and Stockholders’ Equity $ 3,289,674 $ 3,255,013 $ 3,285,232 $ 3,278,215 $ 3,258,512 Taxable Equivalent Net Interest Income 34,180 32,688 33,021 32,298 31,171 Taxable Equivalent Adjustment (178 ) (173 ) (170 ) (161 ) (159 ) Net Interest Income $ 34,002 $ 32,515 $ 32,851 $ 32,137 $ 31,012 Cost of Funds 1.38 % 1.41 % 1.40 % 1.45 % 1.50 % FTE Net Interest Margin 4.56 % 4.46 % 4.36 % 4.27 % 4.21 % _______________ 1 Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate. 2 Average balances include non-accrual loans and are net of unearned income. 3 Average balances of investment securities is computed at fair value. Average Balances, Income and Expenses, Yields and Rates Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 (Dollars in thousands) Average Balance Interest 1 Yield/ Rate Average Balance Interest 1 Yield/ Rate ASSETS Loans: Taxable $ 2,318,337 $ 74,185 6.45 % $ 2,188,852 $ 68,231 6.29 % Tax-exempt 55,860 870 3.14 58,438 771 2.66 Total Loans 2 2,374,197 75,055 6.37 2,247,290 69,002 6.19 Investment Securities : Taxable 492,260 9,184 3.76 465,556 6,832 2.96 Tax-exempt 55,991 803 2.89 54,459 723 2.68 Total Investments 3 548,251 9,987 3.67 520,015 7,555 2.93 Interest-bearing deposits with banks 66,413 1,227 3.73 75,276 1,623 4.35 Total Earning Assets 2,988,861 86,269 5.82 2,842,581 78,180 5.55 Cash and due from banks 25,158 23,120 Premises and equipment 29,679 30,967 Other assets 252,362 240,235 Allowance for credit losses (23,621 ) (22,290 ) Total Assets $ 3,272,439 $ 3,114,613 LIABILITIES Interest-bearing demand deposits $ 633,426 $ 1,055 0.34 % $ 593,185 $ 1,038 0.35 % Money markets 489,702 4,493 1.85 492,273 4,690 1.92 Savings deposits 335,425 52 0.03 336,746 54 0.03 Time deposits 474,480 7,401 3.15 442,343 7,498 3.42 Total Interest-Bearing Deposits 1,933,033 13,001 1.36 1,864,547 13,280 1.44 Short-term borrowings 73,910 1,115 3.04 41,634 635 3.08 Long-term borrowings 229,379 5,284 4.65 256,447 5,849 4.60 Total Borrowings 303,289 6,399 4.25 298,081 6,484 4.39 Total Interest-Bearing Liabilities 2,236,322 19,400 1.75 2,162,628 19,764 1.84 Noninterest-bearing demand deposits 569,102 538,282 Other liabilities 42,984 38,109 Stockholders’ Equity 424,031 375,594 Total Liabilities and Stockholders’ Equity $ 3,272,439 $ 3,114,613 Taxable Equivalent Net Interest Income 66,869 58,416 Taxable Equivalent Adjustment (352 ) (314 ) Net Interest Income $ 66,517 $ 58,102 Cost of Funds 1.39 % 1.48 % FTE Net Interest Margin 4.51 % 4.14 % _______________ 1 Income on interest-earning assets has been computed on a fully taxable equivalent basis (FTE) using the 21% federal income tax statutory rate. 2 Average balances include non-accrual loans and are net of unearned income. 3 Average balances of investment securities is computed at fair value. 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) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Tangible book value per share Stockholders’ equity $ 423,279 $ 425,476 $ 419,974 $ 408,642 $ 395,151 Less: Goodwill and intangible assets (84,800 ) (85,828 ) (86,884 ) (88,014 ) (89,143 ) Tangible common stockholders’ equity (numerator) $ 338,479 $ 339,648 $ 333,090 $ 320,628 $ 306,008 Shares outstanding, less unvested shares, end of period (denominator) 10,128,565 10,296,825 10,337,757 10,387,135 10,442,269 Tangible book value per share $ 33.42 $ 32.99 $ 32.22 $ 30.87 $ 29.30 Tangible common equity to tangible assets (TCE/TA Ratio) Tangible common stockholders’ equity (numerator) $ 338,479 $ 339,648 $ 333,090 $ 320,628 $ 306,008 Total assets $ 3,318,863 $ 3,269,864 $ 3,228,126 $ 3,250,838 $ 3,259,528 Less: Goodwill and intangible assets (84,800 ) (85,828 ) (86,884 ) (88,014 ) (89,143 ) Total tangible assets (denominator) $ 3,234,063 $ 3,184,036 $ 3,141,242 $ 3,162,824 $ 3,170,385 Tangible common equity to tangible assets 10.47 % 10.67 % 10.60 % 10.14 % 9.65 % Efficiency Ratio Noninterest expense $ 23,125 $ 23,615 $ 23,453 $ 22,361 $ 25,366 Less: Intangible amortization 1,028 1,056 1,130 1,129 1,141 Less: Merger-related expense — — 575 169 1,943 Noninterest expense (numerator) $ 22,097 $ 22,559 $ 21,748 $ 21,063 $ 22,282 Net interest income $ 34,002 $ 32,515 $ 32,851 $ 32,137 $ 31,012 Plus: Total noninterest income 8,818 8,274 4,332 8,411 8,682 Less: Gain on assets held for sale — 177 — — — Less: Gain on life insurance proceeds — 174 — — 31 Less: Net gains (losses) on sales or calls of securities — 49 (3,557 ) — 22 Less: Net (losses) gains on equity securities (4 ) (7 ) 4 9 3 Total revenue (denominator) $ 42,824 $ 40,396 $ 40,736 $ 40,539 $ 39,638 Efficiency ratio 51.60 % 55.84 % 53.39 % 51.96 % 56.21 % Contact: Jason H. Weber EVP/Treasurer & Chief Financial Officer 717.339.5090 [email protected] Source: ACNB Corporation 2026 GlobeNewswire, Inc., source Press Releases