ACNB (ACNB) Acquisition Presentation summary

Transaction rationale

• Strategic in-market combination enhances presence in South-Central PA, creating the largest community bank in Pennsylvania with under $5B in assets.

• Increases York County deposit market share from 2.5% to 9.3% and expands into Lancaster County.

• Complements existing non-interest income sources with Traditions' mortgage banking unit.

• Pro forma assets of $3.3B, gross loans of $2.4B, and deposits of $2.6B.

• Immediate EPS accretion (~29% in 2025 and 2026) and IRR greater than 15%.

Overview of Traditions Bancorp

• Founded in 2002, operates 8 branches in South-Central PA, ranked 2nd in York County by deposit market share.

• As of 2024Q2: $859M in assets, $673M in gross loans, $738M in deposits.

• Strong capital ratios: 7.75% TCE/TA, 8.98% Tier 1 Leverage, 11.67% Tier 1 Capital.

• Asset quality metrics: NPAs/Assets at 0.51%, Reserves/Loans at 0.56%.

• 2024Q2 ROAA at 0.86%, ROAE at 11.26%, efficiency ratio at 74.8%.

Pro forma company snapshot

• Combined entity will have $3.3B in assets, $2.6B in deposits, and $2.4B in gross loans.

• Tangible common equity of $276M, TCE/TA of 8.5%, CET1 ratio of 13.0%.

• Expanded branch network across Pennsylvania and Maryland.