ACNB (ACNB) investor relations material

Executive summary

• Net income for Q1 2026 was $13.7 million ($1.32 per diluted share), rebounding from a net loss of $272 thousand in Q1 2025 and up from $10.8 million in Q4 2025, reflecting recovery from acquisition-related charges and merger expenses.

• Profitability improved with ROAA at 1.71% and ROAE at 12.97% for Q1 2026.

• Results reflect strong core banking, disciplined expense management, and stable asset quality.

• Net interest income rose to $32.5 million, up $5.4 million year-over-year, driven by balance sheet restructuring, the Traditions Bancorp acquisition, and higher-yielding new loans and securities.

• Noninterest income increased to $8.3 million, up $1.1 million, primarily due to the acquisition and gains on asset sales, mortgage loans, and bank-owned life insurance.

Financial highlights

• Net interest margin (FTE) improved to 4.46% from 4.07% year-over-year and 4.36% last quarter.

• Noninterest expenses decreased by $5.7 million to $23.6 million, mainly due to the absence of prior year merger-related costs.

• Total loans outstanding were $2.35 billion, up $18.7 million from year-end, 0.8% sequentially, and 1.2% year-over-year.

• Total deposits grew to $2.53 billion, a $75.6 million increase from December 2025.

• Tangible book value per share increased to $32.99 from $28.23 a year ago.

Outlook and guidance

• Management expects continued loan and deposit growth, supported by local market expansion, competitive deposit products, and a focus on sustainable earnings and disciplined risk management.

• Asset quality remains stable, with allowance for credit losses deemed adequate; ongoing monitoring of economic and interest rate conditions is emphasized.

• Strong capital levels provide flexibility for future growth.