ACNB Corporation Reports Financial Growth with $11.6 Million Net Income in Latest Quarter

ACNB Corporation reported significant financial growth in its latest quarterly filing, with net income reaching $11.6 million for the three months ended June 30, 2025, compared to $11.3 million for the same period in 2024. This translates to diluted earnings per share of $1.11, a decrease from $1.32 in the prior year. The increase in net income was primarily driven by the acquisition of Traditions Bancorp, which added substantial assets and loans to ACNB's balance sheet. For the six months ended June 30, 2025, net income was $11.4 million, down from $18.0 million in the same period last year, reflecting higher merger-related expenses and provisions for credit losses.

Total assets surged to $3.26 billion as of June 30, 2025, up from $2.39 billion at the end of 2024, largely due to the acquisition, which contributed $877.7 million in assets. The loan portfolio also expanded significantly, with total loans net of unearned income increasing by $658.9 million, or 39.2%, to $2.34 billion. This growth was fueled by the addition of $648.5 million in loans from Traditions. The allowance for credit losses rose to $24.4 million, or 1.04% of total loans, compared to $17.3 million at the end of 2024, reflecting the initial allowance established for acquired loans.

In terms of operational metrics, ACNB's net interest income increased to $31.0 million for the second quarter of 2025, up from $21.0 million in the same quarter of 2024. The net interest margin improved to 4.21%, a 39 basis point increase year-over-year. The corporation's average loans and deposits also saw substantial growth, with average loans increasing by $678.7 million and average interest-bearing deposits rising by $613.8 million for the quarter. Noninterest income also grew, reaching $8.7 million for the second quarter, driven by higher insurance commissions and gains from mortgage loans held for sale.

Strategically, ACNB completed the acquisition of Traditions Bancorp on February 1, 2025, which has been a pivotal development for the company. The merger has allowed ACNB to expand its footprint in South Central Pennsylvania and Northern Maryland, adding eight community banking offices to its existing network. The integration of Traditions is expected to enhance ACNB's market share and operational capabilities. However, the acquisition has also led to increased noninterest expenses, which totaled $25.4 million for the second quarter, up from $16.4 million in the prior year, primarily due to merger-related costs.

Looking ahead, ACNB's management remains optimistic about the future, emphasizing the potential for continued growth in both loans and deposits as the integration of Traditions progresses. The corporation is focused on leveraging its expanded asset base to enhance profitability while managing credit risk effectively. The outlook suggests that ACNB will continue to adapt to changing market conditions and capitalize on opportunities for growth in its core banking and insurance services.