Open the filing on EDGARPRESS RELEASE FOR IMMEDIATE RELEASE Contact: Jason H. Weber EVP/Treasurer & Chief Financial Officer 717.339.5090 jweber@acnb.com A CNBC ORPORATION REPORTS FOURTHQUARTER AND RECORD 2025 FINANCIALRESULTS GETTY SBU RG, PA, January 22, 2026 --- ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced net income of $10.8 million, or $1.04 diluted earnings per share, for the three months ended December 31, 2025 compared to net income of $6.6 million, or $0.77 diluted earnings per share, for the three months ended December 31, 2024 and compared to net income of $14.9 million, or $1.42 diluted earnings per share, for the three months ended September 30, 2025. Core net income1 was $14.0 million for the three months ended December 31, 2025 compared to core net income1 of $7.3 million for three months ended December 31, 2024 and core net income1 of $15.0 million for the three months ended September 30, 2025.
The Corporation reported net income of $37.1 million, or $3.60 diluted earnings per share, for the twelve months ended December 31, 2025, an increase of $5.2 million compared to the twelve months ended December 31, 2024. Core net income1 was $52.4 million for the twelve months ended December 31, 2025, an increase of $19.0 million compared to core net income1 of $33.4 million for twelve months ended December 31, 2024. ACNB’s financial results for both the three and twelve month periods ended December 31, 2025 were impacted by the repositioning of the investment securities portfolio as announced on Form 8-K on December 5, 2025.
ACNB completed a repositioning of the investment securities portfolio by selling $74.6 million in book value of available for sale investment securities for an after-tax loss of $2.8 million. In addition, the financial results for 2025 were impacted by the acquisition of Traditions Bancorp, Inc. which was completed on February 1, 2025 (“Acquisition”). The financial results for any periods ended prior to February 1, 2025 reflect ACNB on a standalone basis.
As a result, ACNB’s financial results for the three and twelve months ended December 31, 2025 may not be directly comparable to prior reported periods. 2025 Highlights
- Fully taxable equivalent (“FTE”) net interest margin was 4.23% for the twelve months ended December 31, 2025 compared to 3.79% for the twelve months ended December 31, 2024 Exhibit 99.1 1 Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.
- Return on average assets was 1.16% and return on average equity was 9.44% for the twelve months ended December 31, 2025; core return on average assets1 was 1.64% and core return on average equity1 was 13.36% for the twelve months ended December 31, 2025
- Total non-performing loans to total loans, net of unearned income, was 0.46% at December 31, 2025 compared to 0.40% at December 31, 2024
- Net charge-offs to average loans outstanding were 0.01% for the twelve months ended December 31, 2025 compared to 0.02% for the twelve months ended December 31, 2024
- Tangible common equity to tangible assets ratio1 of 10.60% at December 31, 2025 compared to 10.72% at December 31, 2024. The net unrealized loss on the available for sale securities portfolio was $24.2 million at December 31, 2025 compared to a net unrealized loss of $47.7 million at December 31, 2024
- ACNB repurchased 264,393 shares of ACNB common stock in open market transactions for the twelve months ended December 31, 2025 “We are excited and pleased to share our 2025 financial results with our shareholders. This was a transformational year for ACNB Corporation with the successful acquisition and integration of our largest transaction to date in Traditions Bancorp, Inc. Thanks to the dedication of our entire team, we achieved our financial metrics that we originally presented at the time of the acquisition.” said James P. Helt, ACNB Corporation President and Chief Executive Officer. “Our continued focus on community banking principles centered on customer relationships has produced a record year of earnings for the Corporation. The Corporation’s credit metrics and capital positions remain strong. In addition, the Corporation recognized a 21% increase in its common stock share price during the calendar year and increased its quarterly dividend by $0.06 per share or 19% from the fourth quarter of 2024 to the fourth quarter of 2025. The Corporation has increased the amount of cash dividends it has paid out per share each year since 2017, going from a quarterly cash dividend of $0.20 to $0.38 in that time, an increase of 90%.” Mr. Helt continued, “As we now turn our focus to 2026, we remain committed to our vision to be the financial services provider of choice in the communities we serve by building relationships and finding solutions for our customers. We believe that our diversified revenue stream with ACNB Insurance Services, ACNB Wealth Management and Traditions Mortgage provides a strong foundation for future growth, profitability and long-term shareholder value. We would like to express our gratitude for the continued support of our board of directors, shareholders, customers and employees.” Net Interest Income and Margin Net interest income for the three months ended December 31, 2025 totaled $32.9 million, an increase of $714 thousand from the three months ended September 30, 2025. The FTE net interest margin for the three months ended December 31, 2025 was 4.36%, a 9 basis points increase from the three months ended September 30, 2025. The increase in FTE net interest margin from the three months ended September 30, 2025 was driven primarily by a 5 basis points increase in earning asset yields as new loans and securities funded were at higher rates than those that paid off or matured during the quarter and a 6 basis points decrease in the cost of interest- bearing deposits as a result of lower rates on higher cost deposits from the Acquisition and lower overall market rates during the three months ended December 31, 2025. The accretion impact of acquisition accounting ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 2 of 15 1 Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.
adjustments on loans and deposits from the Acquisition was $1.9 million and $2.1 million for the three months ended December 31, 2025 and the three months ended September 30, 2025, respectively. Net interest income for the three months ended December 31, 2025 increased $11.7 million from the three months ended December 31, 2024. The FTE net interest margin for the three months ended December 31, 2025 increased 55 basis points from the three months ended December 31, 2024.
The following discussion of increases in average balances and yields compared to the same period of the prior year was driven primarily by the Acquisition. For the three months ended December 31, 2025, total average loans increased $687.1 million compared to the three months ended December 31, 2024. The FTE yield on total loans was 6.33% for the three months ended December 31, 2025, an increase of 72 basis points compared to the three months ended December 31, 2024.
For the three months ended December 31, 2025, total average interest-bearing deposits increased $555.2 million from the three months ended December 31, 2024. The average rate paid on interest- bearing deposits was 1.36% for the three months ended December 31, 2025, an increase of 40 basis points from the three months ended December 31, 2024. For the three months ended December 31, 2025, total average noninterest-bearing demand deposits increased $128.0 million from the three months ended December 31, 2024.
Net interest income for the twelve months ended December 31, 2025 totaled $123.1 million, an increase of $39.5 million from $83.6 million for the twelve months ended December 31, 2024. The FTE net interest margin for the twelve months ended December 31, 2025 was 4.23%, a 44 basis points increase from 3.79% for the twelve months ended December 31, 2024. The following discussion of increases in average balances and yields compared to the prior year was driven primarily by the Acquisition.
Total average loans increased $635.8 million compared to the twelve months ended December 31, 2024. The FTE yield on total loans was 6.25%, an increase of 73 basis points compared to the twelve months ended December 31, 2024. Total average interest-bearing deposits increased $542.1 million from the twelve months ended December 31, 2024.
The average rate paid on interest-bearing deposits was 1.41% for the twelve months ended December 31, 2025, an increase of 58 basis points from the twelve months ended December 31, 2024. Total average noninterest- bearing demand deposits increased $87.5 million from the twelve months ended December 31, 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $7.7 million for the twelve months ended December 31, 2025.
Noninterest Income Noninterest income for the three months ended December 31, 2025 was $4.3 million, a decrease of $4.1 million and $1.5 million from the three months ended September 30, 2025 and the three months ended December 31, 2024, respectively. The decrease in both periods was driven primarily by the repositioning of the investment securities portfolio, which generated a $3.6 million pre-tax loss on the sale of investment securities, and insurance commissions which were $1.9 million for the three months ended December 31, 2025, a decrease of $663 thousand and $223 thousand from the three months ended September 30, 2025 and the three months ended December 31, 2024, respectively. The decrease in insurance commissions from the three months ended September 30, 2025 was driven primarily by seasonality while the decrease from the three months ended December 31, 2024 was driven primarily by policy cancellations of two customers.
Gain from mortgage loans held for sale for the three months ended December 31, 2025 was $1.4 million, a decrease of $90 thousand from the three months ended September 30, 2025 driven primarily by seasonality and an increase of $1.3 million from the three months ended December 31, 2024 driven primarily by the Acquisition. Wealth management income was $1.2 million for the three months ended December 31, 2025, a $75 thousand increase from the three months ended September 30, 2025 and a $193 thousand increase from the three months ended December 31, 2024. The increase in wealth management income from the three months ended September 30, 2025 was driven primarily by higher estate administration income while the increase from the three months ended December 31, ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 3 of
2024 was driven primarily by growth of fee-based assets under management/administration, and an increase in estate administration income and brokerage commissions generated by higher overall sales activity. Earnings on investment in bank-owned life insurance was $735 thousand for the three months ended December 31, 2025, a $84 thousand increase from the three months ended September 30, 2025 and a $229 thousand increase from the three months ended December 31, 2024. The increase in earnings on investment in bank-owned life insurance from the three months ended September 30, 2025 was driven primarily by the purchase of new policies in the third quarter of 2025 while the increase from the three months ended December 31, 2024 was driven primarily the purchase of new policies in the third quarter of 2025 and the Acquisition.
Noninterest income, excluding net gains (losses) on sales or calls of securities, for the twelve months ended December 31, 2025 was $32.1 million, an increase of $7.5 million from the twelve months ended December 31, 2024. The increase was driven primarily by a $5.0 million increase in gain from mortgage loans held for sale, a $697 thousand increase in service charges on deposits and $614 thousand higher earnings on investment in bank-owned life insurance, which were primarily driven by the Acquisition. Noninterest Expense Noninterest expense for the three months ended December 31, 2025 increased $1.1 million from the three months ended September 30, 2025.
Merger-related expenses totaled $575 thousand for the three months ended December 31, 2025 compared to $169 thousand for the three months ended September 30, 2025. Other increased $621 thousand for the three months ended December 31, 2025 compared to the three months ended September 30, 2025. The increase was driven primarily by a write-off of legacy accounts receivable at the insurance subsidiary of $475 thousand.
Professional services increased $164 thousand for the three months ended December 31, 2025 compared to three months ended September 30, 2025. The increase was driven primarily by internal bank initiatives and the Acquisition. Salaries and employee benefits expense for the three months ended December 31, 2025 decreased $157 thousand compared to three months ended September 30, 2025.
The decrease was driven primarily by lower health insurance expense. Noninterest expense for the three months ended December 31, 2025 increased $5.1 million from the three months ended December 31, 2024. The increase was driven primarily by the Acquisition.
Salaries and employee benefits expense increased $2.7 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024. The increase was driven primarily by additional employees attributable to the Acquisition, merit increases, and higher mortgage commissions. Other increased $1.2 million for the three months ended December 31, 2025 compared to the three months ended December 31, 2024.
The increase was driven primarily by the Acquisition, the write-off of legacy accounts receivable at the insurance subsidiary and higher internet banking services. Noninterest expense for the twelve months ended December 31, 2025 increased $29.8 million compared to the twelve months ended December 31, 2024. The increase was driven primarily by the Acquisition.
Salaries and employee benefits expense increased $9.9 million during the twelve months ended December 31, 2025 compared to the twelve months ended December 31, 2024. The increase was driven primarily by additional employees attributable to the Acquisition, merit increases, and higher mortgage commissions. Merger-related expense totaled $10.7 million for the twelve months ended December 31, 2025 compared to $2.0 million for the twelve months ended December 31, 2024.
Intangible assets amortization increased $3.0 million and net occupancy increased $1.0 million for the twelve months ended December 31, 2025 compared to the twelve months ended December 31, 2024. The increases were a result of the Acquisition. Equipment expense increased $2.2 million driven primarily by the Acquisition and the implementation of new additional products into our core processing system.
Other increased $3.9 million for the twelve months ended December 31, 2025 ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 4 of
compared to the twelve months ended December 31, 2024. The increase was driven primarily by the Acquisition, higher internet banking services and contributions. Loans and Asset Quality Total loans outstanding were $2.33 billion at December 31, 2025, a decrease of $6.1 million from September 30, 2025 and an increase of $647.6 million from December 31, 2024.
The decrease compared to September 30, 2025 was across commercial and industrial, real estate construction and consumer portfolios and was partially offset by increases in commercial real estate, residential mortgage and home equity lines of credit portfolios. The increase compared to December 31, 2024 was spread across all loan categories and was driven primarily by the Acquisition. The allowance for credit losses was $23.7 million at December 31, 2025, an increase of $12 thousand compared to September 30, 2025 and an increase of $6.4 million compared to December 31, 2024.
The increase compared to September 30, 2025 was driven primarily by changes to economic forecast assumptions within the CECL model. The increase compared to December 31, 2024 was driven primarily by the Acquisition. Total non-performing loans to total loans, net of unearned income, increased from 0.40% at December 31, 2024 to 0.46% at December 31, 2025.
The increase was driven primarily by three unrelated relationships in the commercial real estate and residential mortgage portfolios. The bank does not believe the increase is indicative of a general weakness in the overall loan portfolio. The allowance for unfunded commitments was $1.8 million at December 31, 2025, an increase of $447 thousand compared to September 30, 2025 and an increase of $437 thousand compared to December 31, 2024.
The increase compared to both periods was driven primarily by the concentration of unfunded commitments to higher loss rate segments. Deposits and Borrowings Deposits totaled $2.45 billion at December 31, 2025, a decrease of $15.7 million from September 30, 2025 and an increase of $657.7 million from December 31, 2024. Total interest-bearing deposits were $1.90 billion at December 31, 2025, an increase of $12.1 million from September 30, 2025 and an increase of $555.3 million from December 31, 2024.
Money markets, included in interest-bearing deposits, decreased $7.6 million since September 30, 2025 and increased $234.1 million since December 31, 2024. The decrease in money market deposits from September 30, 2025 was driven primarily by lower balances of higher cost money markets from the Acquisition and the increase from December 31, 2024 was a result of the Acquisition. Time deposits increased $6.5 million and $179.9 million since September 30, 2025 and December 31, 2024, respectively.
Included in total deposits at December 31, 2025 were $553.9 million of noninterest-bearing deposits, which decreased $27.8 million from September 30, 2025 driven primarily by seasonal decreases in commercial account balances and increased $102.4 million from December 31, 2024 driven primarily by the Acquisition. Total borrowings were $320.1 million at December 31, 2025, a decrease of $15.7 million compared to September 30, 2025 and an increase of $49.0 million compared to December 31, 2024. Total borrowings decreased from September 30, 2025 driven primarily by a decrease in seasonal repurchase agreement balances.
Total borrowings increased from December 31, 2024 driven primarily by short-term FHLB borrowings for general balance sheet management. Stockholders’ Equity Total stockholders’ equity was $420.0 million at December 31, 2025 compared to $408.6 million at September 30, 2025 and $303.3 million at December 31, 2024. The increase at December 31, 2025 compared to September 30, 2025 was driven primarily by net income of $10.8 million and a $6.4 million change in unrealized gains in available for sale investment securities slightly offset by dividends paid of $3.9 million and common stock repurchased of $2.5 million for the three months ended December 31, 2025.
The increase at ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 5 of
December 31, 2025 compared to December 31, 2024 was driven primarily by the common stock equity issued in the Acquisition, net income of $37.1 million, and a $19.5 million change in unrealized gains in available for sale investment securities slightly offset by dividends paid of $14.4 million and common stock repurchased of $11.2 million for the twelve months ended December 31, 2025. Tangible book value1 per share was $32.22, $30.87 and $29.51 at December 31, 2025, September 30, 2025 and December 31, 2024, respectively. ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 6 of 15 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 $3.23 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 one loan office located in the Pennsylvania counties of Adams, 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.
Forward-looking statements notice
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 #2026-02 January 22, 2026 ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 7 of
ACNB Corporation Financial Highlights Selected Financial Data by Respective Quarter End (Unaudited) (Dollars in thousands, except per share data) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 BALANCE SHEET DATA Total assets $ 3,228,126 $ 3,250,838 $ 3,259,528 $ 3,270,041 $ 2,394,830 Investment securities 531,131 526,570 520,758 521,306 459,472 Total loans, net of unearned income 2,330,514 2,336,605 2,341,816 2,322,209 1,682,910 Allowance for credit losses (23,672) (23,660) (24,353) (24,646) (17,280) Deposits 2,450,185 2,465,896 2,524,541 2,540,009 1,792,501 Allowance for unfunded commitments 1,831 1,384 1,529 1,883 1,394 Borrowings 320,116 335,833 298,395 299,531 271,159 Stockholders’ equity 419,974 408,642 395,151 386,883 303,273 INCOME STATEMENT DATA Interest and dividend income $ 42,856 $ 42,490 $ 41,576 $ 36,290 $ 27,381 Interest expense 10,005 10,353 10,564 9,200 6,269 Net interest income 32,851 32,137 31,012 27,090 21,112 Provision for (reversal of) credit losses 106 (584) (228) 5,968 249 Provision for (reversal of) unfunded commitments 447 (145) (354) (480) 44 Net interest income after provisions for (reversal of) credit losses and unfunded commitments 32,298 32,866 31,594 21,602 20,819 Noninterest income 4,332 8,411 8,682 7,184 5,803 Noninterest expenses 23,453 22,361 25,366 29,335 18,388 Income (loss) before income taxes 13,177 18,916 14,910 (549) 8,234 Income tax expense (benefit) 2,372 4,046 3,262 (277) 1,639 Net income (loss) $ 10,805 $ 14,870 $ 11,648 $ (272) $ 6,595 PROFITABILITY RATIOS Total loans, net of unearned income to deposits 95.12 % 94.76 % 92.76 % 91.43 % 93.89 % Return on average assets (annualized) 1.30 1.80 1.43 (0.04) 1.08 Return on average equity (annualized) 10.31 14.66 11.96 (0.31) 8.57 Efficiency ratio1 53.39 51.96 56.21 60.13 63.83 FTE Net interest margin 4.36 4.27 4.21 4.07 3.81 Yield on average earning assets 5.69 5.64 5.64 5.45 4.93 Yield on investment securities 3.17 3.03 2.95 2.91 2.58 Yield on total loans 6.33 6.29 6.29 6.08 5.61 Cost of funds 1.40 1.45 1.50 1.45 1.19 PER SHARE DATA Diluted earnings (loss) per share $ 1.04 $ 1.42 $ 1.11 $ (0.03) $ 0.77 Cash dividends paid per share 0.38 0.34 0.34 0.32 0.32 Tangible book value per share1 32.22 30.87 29.30 28.23 29.51 CAPITAL RATIOS2 Tier 1 leverage ratio 11.40 % 11.22 % 10.97 % 11.81 % 12.52 % Common equity tier 1 ratio 14.74 14.45 13.96 13.65 16.27 Tier 1 risk based capital ratio 14.96 14.67 14.17 13.86 16.56 Total risk based capital ratio 16.54 16.22 15.75 15.45 18.36 CREDIT QUALITY Net charge-offs to average loans outstanding (annualized) 0.02 % 0.02 % 0.01 % 0.01 % 0.04 % Total non-performing loans to total loans, net of unearned income3 0.46 0.43 0.43 0.43 0.40 Total non-performing assets to total assets4 0.33 0.31 0.31 0.32 0.30 Allowance for credit losses to total loans, net of unearned income 1.02 1.01 1.04 1.06 1.03 ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 8 of 15 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 December 31, 2025 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) December 31, 2025 September 30, 2025 December 31, 2024 ASSETS Cash and due from banks $ 20,611 $ 30,500 $ 16,352 Interest-bearing deposits with banks 45,037 71,639 30,910 Total Cash and Cash Equivalents 65,648 102,139 47,262 Equity securities with readily determinable fair values 949 945 919 Investment securities available for sale, at estimated fair value 466,894 462,217 393,975 Investment securities held to maturity, at amortized cost (fair value $57,537, $56,932 and $56,924) 63,288 63,408 64,578 Loans held for sale 28,170 16,850 426 Total loans, net of unearned income 2,330,514 2,336,605 1,682,910 Less: Allowance for credit losses (23,672) (23,660) (17,280) Loans, net 2,306,842 2,312,945 1,665,630 Premises and equipment, net 30,648 31,107 25,454 Right of use asset 4,155 4,403 2,663 Restricted investment in bank stocks 14,237 14,462 10,853 Investment in bank-owned life insurance 105,840 96,755 81,850 Investments in low-income housing partnerships 751 783 877 Goodwill 64,449 64,449 44,185 Intangible assets, net 22,435 23,565 7,838 Assets held for sale 275 275 - Foreclosed assets held for resale 19 32 438 Other assets 53,526 56,503 47,882 Total Assets $ 3,228,126 $ 3,250,838 $ 2,394,830 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits: Noninterest-bearing $ 553,855 $ 581,697 $ 451,503 Interest-bearing 1,896,330 1,884,199 1,340,998 Total Deposits 2,450,185 2,465,896 1,792,501 Short-term borrowings 64,740 80,468 15,826 Long-term borrowings 255,376 255,365 255,333 Lease liability 4,451 4,696 2,764 Allowance for unfunded commitments 1,831 1,384 1,394 Other liabilities 31,569 34,387 23,739 Total Liabilities 2,808,152 2,842,196 2,091,557 Stockholders’ Equity: Preferred Stock, $2.50 par value, 20,000,000 shares authorized; no shares outstanding at December 31, 2025, September 30, 2025 and December 31, 2024 - - - Common stock, $2.50 par value, 20,000,000 shares authorized; 11,028,152, 11,023,573, and 8,945,293 shares issued; 10,372,251, 10,423,015, and 8,553,785 shares outstanding at December 31, 2025, September 30, 2025 and December 31, 2024, respectively 27,564 27,555 22,357 Treasury stock, at cost, 655,901, 600,558, and 391,508 at December 31, 2025, September 30, 2025, and December 31, 2024, respectively (22,367) (19,875) (11,203) Additional paid-in capital 179,658 179,130 99,163 Retained earnings 257,293 250,410 234,624 Accumulated other comprehensive loss (22,174) (28,578) (41,668) Total Stockholders’ Equity 419,974 408,642 303,273 Total Liabilities and Stockholders’ Equity $ 3,228,126 $ 3,250,838 $ 2,394,830 ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 9 of
Consolidated Income Statements (Unaudited) Three Months Ended Years Ended December 31, (Dollars in thousands, except per share data) December 31, 2025 September 30, 2025 December 31, 2024 2025 2024 INTEREST AND DIVIDEND INCOME Loans, including fees: Taxable $ 37,293 $ 36,961 $ 23,294 $ 142,485 $ 90,547 Tax-exempt 343 324 289 1,276 1,232 Investment securities: Taxable 3,580 3,430 2,555 13,195 10,748 Tax-exempt 297 281 284 1,149 1,136 Dividends 320 332 231 1,299 970 Other 1,023 1,162 728 3,808 2,832 Total Interest and Dividend Income 42,856 42,490 27,381 163,212 107,465 INTEREST EXPENSE Deposits 6,547 6,872 3,279 26,699 11,194 Short-term borrowings 491 513 12 1,639 859 Long-term borrowings 2,967 2,968 2,978 11,784 11,801 Total Interest Expense 10,005 10,353 6,269 40,122 23,854 Net Interest Income 32,851 32,137 21,112 123,090 83,611 Provision for (reversal of) credit losses 106 (584) 249 5,262 (2,437) Provision for (reversal of) unfunded commitments 447 (145) 44 (532) (326) Net Interest Income after Provisions for (Reversal of) Credit Losses and Unfunded Commitments 32,298 32,866 20,819 118,360 86,374 NONINTEREST INCOME Insurance commissions 1,882 2,545 2,105 9,482 9,754 Gain from mortgage loans held for sale 1,373 1,463 107 5,266 301 Service charges on deposits 1,282 1,286 1,084 4,841 4,144 Wealth management 1,200 1,125 1,007 4,475 4,226 ATM debit card charges 923 904 815 3,563 3,303 Earnings on investment in bank-owned life insurance 735 651 506 2,593 1,979 Gain on life insurance proceeds - - - 285 - Net (losses) gains on sales or calls of investment securities (3,557) - - (3,535) 69 Net gains (losses) on equity securities 4 9 (28) 30 (9) Other 490 428 207 1,609 963 Total Noninterest Income 4,332 8,411 5,803 28,609 24,730 NONINTEREST EXPENSES Salaries and employee benefits 13,034 13,191 10,318 52,779 42,929 Equipment 2,356 2,302 2,324 9,477 7,321 Net occupancy 1,241 1,217 1,096 5,177 4,162 Professional services 752 588 586 2,660 2,140 Other tax 539 561 360 1,847 1,446 FDIC and regulatory 458 457 337 1,751 1,425 Intangible assets amortization 1,130 1,129 304 4,257 1,244 Merger-related 575 169 885 10,718 2,045 Other 3,368 2,747 2,178 11,849 7,973 Total Noninterest Expenses 23,453 22,361 18,388 100,515 70,685 Income Before Income Taxes 13,177 18,916 8,234 46,454 40,419 Income taxes 2,372 4,046 1,639 9,403 8,573 Net Income $ 10,805 $ 14,870 $ 6,595 $ 37,051 $ 31,846 PER SHARE DATA Basic earnings $ 1.04 $ 1.43 $ 0.78 $ 3.61 $ 3.75 Diluted earnings $ 1.04 $ 1.42 $ 0.77 $ 3.60 $ 3.73 Weighted average shares basic 10,351,613 10,419,581 8,511,253 10,259,179 8,503,473 Weighted average shares diluted 10,386,137 10,455,461 8,549,691 10,290,148 8,536,965 ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 10 of
Average Balances, Income and Expenses, Yields and Rates Three Months Ended Three Months Ended Three Months Ended Three Months Ended Three Months Ended December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 (Dollars in thousands) Average Balance Interest1 Yield/ Rate Average Balance Interest1 Yield/ Rate Average Balance Interest1 Yield/ Rate Average Balance Interest1 Yield/ Rate Average Balance Interest1 Yield/ Rate ASSETS Loans: Taxable $ 2,305,296 $ 37,293 6.42 % $ 2,298,054 $ 36,961 6.38 % $ 2,296,429 $ 36,555 6.38 % $ 2,080,231 $ 31,676 6.18 % $ 1,619,245 $ 23,294 5.72 % Tax-exempt 58,740 434 2.93 58,587 410 2.78 58,903 401 2.73 57,969 370 2.59 57,683 366 2.52 Total Loans2 2,364,036 37,727 6.33 2,356,641 37,371 6.29 2,355,332 36,956 6.29 2,138,200 32,046 6.08 1,676,928 23,660 5.61 Investment Securities: Taxable 480,987 3,900 3.22 485,309 3,762 3.08 482,933 3,590 2.98 447,986 3,242 2.93 431,338 2,786 2.57 Tax-exempt 54,518 376 2.74 53,165 356 2.66 54,261 358 2.65 54,659 365 2.71 54,453 359 2.62 Total Investments3 535,505 4,276 3.17 538,474 4,118 3.03 537,194 3,948 2.95 502,645 3,607 2.91 485,791 3,145 2.58 Interest-bearing deposits with banks 101,846 1,023 3.99 103,290 1,162 4.46 77,348 831 4.31 73,181 792 4.39 60,104 728 4.82 Total Earning Assets 3,001,387 43,026 5.69 2,998,405 42,651 5.64 2,969,874 41,735 5.64 2,714,026 36,445 5.45 2,222,823 27,533 4.93 Cash and due from banks 25,686 26,709 25,610 20,603 20,413 Premises and equipment 31,297 31,514 32,019 29,903 25,679 Other assets 250,508 245,899 255,624 224,522 181,180 Allowance for credit losses (23,646) (24,312) (24,615) (19,939) (17,153) Total Assets $ 3,285,232 $ 3,278,215 $ 3,258,512 $ 2,969,115 $ 2,432,942 LIABILITIES Interest-bearing demand deposits $ 633,593 $ 545 0.34 % $ 616,565 $ 570 0.37 % $ 612,812 $ 514 0.34 % $ 573,341 $ 524 0.37 % $ 519,833 $ 511 0.39 % Money markets 491,932 2,322 1.87 510,655 2,530 1.97 536,755 2,706 2.02 447,297 1,984 1.80 251,781 747 1.18 Savings deposits 331,309 27 0.03 335,083 26 0.03 342,327 27 0.03 331,103 27 0.03 315,512 34 0.04 Time deposits 454,083 3,653 3.19 454,625 3,746 3.27 473,589 4,037 3.42 410,749 3,461 3.42 268,559 1,987 2.94 Total Interest-Bearing Deposits 1,910,917 6,547 1.36 1,916,928 6,872 1.42 1,965,483 7,284 1.49 1,762,490 5,996 1.38 1,355,685 3,279 0.96 Short-term borrowings 69,326 491 2.81 70,389 513 2.89 44,515 341 3.07 38,721 294 3.08 23,087 12 0.21 Long-term borrowings 255,369 2,967 4.61 255,358 2,968 4.61 255,347 2,939 4.62 257,558 2,910 4.58 255,326 2,978 4.64 Total Borrowings 324,695 3,458 4.23 325,747 3,481 4.24 299,862 3,280 4.39 296,279 3,204 4.39 278,413 2,990 4.27 Total Interest-Bearing Liabilities 2,235,612 10,005 1.78 2,242,675 10,353 1.83 2,265,345 10,564 1.87 2,058,769 9,200 1.81 1,634,098 6,269 1.53 Noninterest-bearing demand deposits 592,956 593,800 563,321 512,966 464,949 Other liabilities 40,963 39,397 39,271 36,934 27,887 Stockholders’ Equity 415,701 402,343 390,575 360,446 306,008 Total Liabilities and Stockholders’ Equity $ 3,285,232 $ 3,278,215 $ 3,258,512 $ 2,969,115 $ 2,432,942 Taxable Equivalent Net Interest Income 33,021 32,298 31,171 27,245 21,264 Taxable Equivalent Adjustment (170) (161) (159) (155) (152) Net Interest Income $ 32,851 $ 32,137 $ 31,012 $ 27,090 $ 21,112 Cost of Funds 1.40% 1.45 % 1.50 % 1.45 % 1.19% FTE Net Interest Margin 4.36% 4.27 % 4.21 % 4.07 % 3.81% ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 11 of 15 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 Year Ended December 31, 2025 Year Ended December 31, 2024 (Dollars in thousands) Average Balance Interest1 Yield/ Rate Average Balance Interest1 Yield/ Rate ASSETS Loans: Taxable $ 2,245,727 $ 142,485 6.34 % $ 1,605,976 $ 90,547 5.64 % Tax-exempt 58,552 1,615 2.76 62,532 1,559 2.49 Total Loans2 2,304,279 144,100 6.25 1,668,508 92,106 5.52 Investment Securities: Taxable 474,424 14,494 3.06 445,531 11,718 2.63 Tax-exempt 54,148 1,454 2.69 54,596 1,438 2.63 Total Investments3 528,572 15,948 3.02 500,127 13,156 2.63 Interest-bearing deposits with banks 89,034 3,808 4.28 53,482 2,832 5.30 Total Earning Assets 2,921,885 163,856 5.61 2,222,117 108,094 4.86 Cash and due from banks 24,672 20,920 Premises and equipment 31,188 25,873 Other assets 244,251 185,037 Allowance for credit losses (23,141) (18,589) Total Assets $ 3,198,855 $ 2,435,358 LIABILITIES Interest-bearing demand deposits $ 609,263 $ 2,153 0.35 % $ 516,033 $ 1,603 0.31 % Money markets 496,820 9,542 1.92 248,733 2,588 1.04 Savings deposits 334,956 107 0.03 324,034 118 0.04 Time deposits 448,398 14,897 3.32 258,560 6,885 2.66 Total Interest-Bearing Deposits 1,889,437 26,699 1.41 1,347,360 11,194 0.83 Short-term borrowings 55,862 1,639 2.93 36,492 859 2.35 Long-term borrowings 255,901 11,784 4.60 253,671 11,801 4.65 Total Borrowings 311,763 13,423 4.31 290,163 12,660 4.36 Total Interest-Bearing Liabilities 2,201,200 40,122 1.82 1,637,523 23,854 1.46 Noninterest-bearing demand deposits 566,057 478,534 Other liabilities 39,153 28,276 Stockholders’ Equity 392,445 291,025 Total Liabilities and Stockholders’ Equity $ 3,198,855 $ 2,435,358 Taxable Equivalent Net Interest Income 123,734 84,240 Taxable Equivalent Adjustment (644) (629) Net Interest Income $ 123,090 $ 83,611 Cost of Funds 1.45 % 1.13 % FTE Net Interest Margin 4.23 % 3.79 % ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 12 of 15 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.
Loan and Deposit Detail by Type Variance (Dollars in thousands) December 31, 2025 September 30, 2025 December 31, 2024 December 2025 vs. September 2025 December 2025 vs. December 2024 Loans Commercial real estate $ 1,273,813 $ 1,263,896 $ 969,514 $ 9,917 $ 304,299 Residential mortgage 599,051 593,283 401,950 5,768 197,101 Commercial and industrial 205,452 218,364 140,906 (12,912) 64,546 Home equity lines of credit 127,341 125,839 85,685 1,502 41,656 Real estate construction 116,680 126,451 76,773 (9,771) 39,907 Consumer 10,140 10,144 9,318 (4) 822 Gross loans 2,332,477 2,337,977 1,684,146 (5,500) 648,331 Unearned income (1,963) (1,372) (1,236) (591) (727) Total loans, net of unearned income $ 2,330,514 $ 2,336,605 $ 1,682,910 $ (6,091) $ 647,604 Variance (Dollars in thousands) December 31, 2025 September 30, 2025 December 31, 2024 December 2025 vs.
September 2025 December 2025 vs. December 2024 Deposits Noninterest-bearing demand deposits $ 553,855 $ 581,697 $ 451,503 $ (27,842) $ 102,352 Interest-bearing demand deposits 623,620 614,130 505,096 9,490 118,524 Money market 485,808 493,430 251,667 (7,622) 234,141 Savings 333,973 330,200 311,207 3,773 22,766 Total demand and savings 1,997,256 2,019,457 1,519,473 (22,201) 477,783 Time 452,929 446,439 273,028 6,490 179,901 Total deposits $ 2,450,185 $ 2,465,896 $ 1,792,501 $ (15,711) $ 657,684 ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 13 of
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. Tangible book value per share Stockholders’ equity $ 419,974 $ 408,642 $ 395,151 $ 386,883 $ 303,273 Less: Goodwill and intangible assets (86,884) (88,014) (89,143) (90,284) (52,023) Tangible common stockholders’ equity (numerator) $ 333,090 $ 320,628 $ 306,008 $ 296,599 $ 251,250 Shares outstanding, less unvested shares, end of period (denominator) 10,337,757 10,387,135 10,442,269 10,506,822 8,515,347 Tangible book value per share $ 32.22 $ 30.87 $ 29.30 $ 28.23 $ 29.51 Tangible common equity to tangible assets (TCE/TA Ratio) Tangible common stockholders’ equity (numerator) $ 333,090 $ 320,628 $ 306,008 $ 296,599 $ 251,250 Total assets $ 3,228,126 $ 3,250,838 $ 3,259,528 $ 3,270,041 $ 2,394,830 Less: Goodwill and intangible assets (86,884) (88,014) (89,143) (90,284) (52,023) Total tangible assets (denominator) $ 3,141,242 $ 3,162,824 $ 3,170,385 $ 3,179,757 $ 2,342,807 Tangible common equity to tangible assets 10.60 % 10.14 % 9.65 % 9.33 % 10.72 % Efficiency Ratio Noninterest expense $ 23,453 $ 22,361 $ 25,366 $ 29,335 $ 18,388 Less: Intangible amortization 1,130 1,129 1,141 857 304 Less: Merger-related expense 575 169 1,943 8,031 885 Noninterest expense (numerator) $ 21,748 $ 21,063 $ 22,282 $ 20,447 $ 17,199 Net interest income $ 32,851 $ 32,137 $ 31,012 $ 27,090 $ 21,112 Plus: Total noninterest income 4,332 8,411 8,682 7,184 5,803 Less: Gain on life insurance proceeds - - 31 254 - Less: Net (losses) gains on sales or calls of securities (3,557) - 22 - - Less: Net gains (losses) on equity securities 4 9 3 14 (28) Total revenue (denominator) $ 40,736 $ 40,539 $ 39,638 $ 34,006 $ 26,943 Efficiency ratio 53.39 % 51.96 % 56.21 % 60.13 % 63.83 % Three Months Ended (Dollars in thousands, except per share data) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 14 of
Non-GAAP Reconciliation, continued Three Months Ended Years Ended December 31, (Dollars in thousands) December 31, 2025 September 30, 2025 December 31, 2024 2025 2024 Core return on average assets Net income $ 10,805 $ 14,870 $ 6,595 $ 37,051 $ 31,846 Initial ACL for non-purchased credit deteriorated loans, net of taxes - - - 4,257 - Loss on securities repositioning, net of taxes 2,768 - - 2,768 - Merger-related expense, net of taxes 447 131 685 8,339 1,582 Core net income (numerator) $ 14,020 $ 15,001 $ 7,280 $ 52,415 $ 33,428 Average assets (denominator) $ 3,285,232 $ 3,278,215 $ 2,432,942 $ 3,198,855 $ 2,435,358 Core return on average assets 1.69 % 1.82 % 1.19 % 1.64 % 1.37 % Core return on average equity Core net income (numerator) $ 14,020 $ 15,001 $ 7,280 $ 52,415 $ 33,428 Average equity (denominator) $ 415,701 $ 402,343 $ 306,008 $ 392,445 $ 291,025 Core return on average equity 13.38 % 14.79 % 9.46 % 13.36 % 11.49 % ACNB Corporation Press Release/2025 Fourth Quarter Financial Results January 22, 2026 Page 15 of