ACNB Corporation Reports 2020 Second Quarter Financial Results

Effective January 11, 2020, ACNB Corporation obtained Frederick County Bancorp, Inc. (FCBI) and its totally-owned subsidiary, Frederick County Bank, founded in Frederick, MD, with systems conversions finished in March 2020. This transaction resulted within the addition of $443,425,000 in property, $329,312,000 in loans, $374,058,000 in deposits, $22,528,000 in goodwill, and $57,280,000 in fairness to ACNB Corporation’s stability sheet.

ACNB Corporation replied to, and maintains to address, the impact of the COVID-19 pandemic with a centered and responsive plan to meet the desires of the Corporation’s clients and groups, as well as to maintain a high stage of operational overall performance even as protective valued body of workers contributors.

Net profits for the 3 months ended June 30, 2020, totaled $5,797,000, which is a decrease of $669,000 or 10.4% over comparable length results for the 3 months ended June 30, 2019.

Net profits for the six months ended June 30, 2020, totaled $four,574,000, with simple income consistent with share of $0.53. This displays a lower of $7,756,000 or 62.9% over similar length effects for the six months ended June 30, 2019, and is due normally to one-time merger-associated expenses of $five,965,000 and a higher provision for loan losses of $6,550,000 due to a previously-reported, large unanticipated fee-off of one loan relationship throughout the first area of 2020 and the capacity financial effect of the Coronavirus Disease 2019 (COVID-19) pandemic. Without the nonrecurring expenses related to the acquisition of FCBI, in addition to the corresponding tax impact at the marginal tax rate, internet earnings (non-GAAP) would were $9,147,000, or $1.07 basic income in line with share, for the six months ended June 30, 2020.

Net interest income for the six months ended June 30, 2020, totaled $35,800,000, that's an increase of $6,165,000 or 20.Eight% over comparable length consequences for the six months ended June 30, 2019, and an illustration of the energy of ACNB Corporation’s community banking model together with strategic inorganic boom.

Otal loans high-quality had been $1,733,563,000 at June 30, 2020, in comparison to $1,279,264,000 at June 30, 2019, for an boom of 35.Five% which include loans received from FCBI. 

Total deposits were $2,032,801,000 at June 30, 2020, in comparison to $1,377,277,000 at June 30, 2019, for an increase of forty seven.6% which includes deposits obtained from FCBI. 

Quarterly cash dividends paid to ACNB Corporation shareholders within the first half of 2020 totaled $4,335,000 or $0.50 per share. It became these days announced the cash dividend declared for the 0.33 area of 2020 is $0.25 according to proportion. 
GETTYSBURG, Pa., July 29, 2020 (GLOBE NEWSWIRE) -- ACNB Corporation (NASDAQ: ACNB), economic holding organization for ACNB Bank and Russell Insurance Group, Inc., introduced financial outcomes for the three months ended June 30, 2020, with internet income of $five,797,000. Compared to internet income of $6,466,000 for the 3 months ended June 30, 2019, this is a lower of $669,000 or 10.Four% over similar length effects, in general because of higher loan loss provision cost in the 2d area of 2020 due to COVID-19. Basic earnings in keeping with proportion became $zero.Sixty seven and $0.92 for the three months ended June 30, 2020 and 2019, respectively, that's a lower of $0.25 or 27.2%.

The Corporation said internet income of $four,574,000 for the six months ended June 30, 2020. Compared to net profits of $12,330,000 for the six months ended June 30, 2019, this is a lower of $7,756,000 or sixty two.Nine% over comparable duration results. Basic profits in keeping with share became $0.Fifty three and $1.75 for the six months ended June 30, 2020 and 2019, respectively, that's a decrease of $1.22 or sixty nine.7%. These outcomes are in most cases as a consequence of one-time merger-related charges of $5,965,000 and a better provision for loan losses of $6,550,000 because of a previously-pronounced, large unanticipated rate-off of 1 mortgage courting at some stage in the first quarter of 2020 and the capacity economic impact of the COVID-19 pandemic. Without the nonrecurring prices associated with the purchase of FCBI, as well as the corresponding tax impact on the marginal tax charge, net income (non-GAAP) would have been $9,147,000, or $1.07 simple earnings according to share, for the six months ended June 30, 2020.

As the yr of 2020 opened, ACNB Corporation was nicely located with the planned closing of the acquisition of Frederick County Bancorp, Inc. And its completely-owned subsidiary, Frederick County Bank, in January and the reporting of file financial results for 2019---each outcomes of the Corporation’s persisted attention on strategic initiatives to decorate shareholder fee. Additionally, the Corporation’s commitment to sound running standards and its conservative lifestyle fortified the organisation while the COVID-19 pandemic dramatically impacted how we behavior our business on a day by day basis,” stated James P. Helt, ACNB Corporation President & Chief Executive Officer. “In reaction, we have taken a deliberate and measured technique in protective our maximum treasured asset, our body of workers participants working in places of work and remotely to fulfill client desires regardless of the pandemic. Equally as important, our efforts are ongoing to shield as well as assist clients all through these remarkable times, whether or not thru the Paycheck Protection Program mortgage and forgiveness procedure or via direct loan changes and other account accommodations.”

Mr. Helt persevered, “As 2020 keeps to unfold, the lengthy-term financial effect of this fitness crisis remains unknown with excessive unemployment prices and agencies working with confined capability. This surroundings is not the only we expected for 2020. However, ACNB Corporation has verified its resiliency time and again over its lengthy records due to the adherence to fundamentals inclusive of capital maintenance, credit score satisfactory, and cost management. ACNB Corporation’s banking subsidiary, ACNB Bank Services, stays a properly-capitalized economic institution. And, we're solidly placed to leverage the recent acquisition in Frederick County, Maryland, for future growth and to further decorate long-time period ACNB Corporation shareholder price.”

Revenues

Total sales, described as internet hobby income plus noninterest earnings, for the primary quarters of 2020 have been $44,859,000, or a 16.Eight% increase over total sales of $38,395,000 for the primary two quarters of 2019. Total hobby income for the first half of of 2020 changed into $forty two,494,000, or an increase of 23.7%, as compared to general interest income of $34,340,000 for the first 1/2 of 2019.

Loans

Total loans exquisite were $1,733,563,000 at June 30, 2020. Loans extraordinary elevated by using $460,962,000, or 36.2%, from December 31, 2019, and by way of $454,299,000, or 35.5%, from June 30, 2019 to June 30, 2020, inclusive of $329,312,000 in loans obtained via FCBI. Loan boom is largely because of the FCBI acquisition, internet of selling new residential mortgages inside the secondary market and early payoffs of loans, in addition to energetic participation within the Small Business Administration’s Paycheck Protection Program (PPP). Year over 12 months, organic mortgage growth is mainly within the business loan portfolio with a focus on asset first-rate and disciplined underwriting requirements notwithstanding the extreme competition in the Corporation’s marketplace areas. As a result of the previously-stated, massive unanticipated fee-off of 1 loan dating and expanded risk from COVID-19, blended with regular and predicted credit losses in the portfolio, the provision for loan losses for the first 1/2 of 2020 was $6,550,000.

Deposits

Total deposits have been $2,032,801,000 at June 30, 2020. Deposits improved by $620,541,000, or forty three.Nine%, from December 31, 2019, and by using $655,524,000, or forty seven.6%, from June 30, 2019 to June 30, 2020, which include $374,058,000 in deposits acquired thru FCBI. Year over year, natural deposit growth is basically as a consequence of PPP proceeds deposited to customer debts and multiplied balances in a wide base of accounts from a loss of financial hobby because of COVID-19.

Net Interest Income and Margin

Net interest profits rose by means of $6,165,000 to $35,800,000 for the first six months of 2020, that's an increase of 20.Eight% compared to the first six months of 2019. The net interest margin for the first half of 2020 turned into three.Fifty three%, compared to a few.91% for the equal duration of 2019. Both internet hobby earnings and the net interest margin had been impacted via lower market yields within the first 1/2 of 2020. The decrease market yields negatively affected the internet hobby margin as new loans replaced paydowns on present loans and variable rate loans reset to new present day fees.

Noninterest Income

Noninterest earnings for the first six months of 2020 was $9,059,000, an increase of $299,000, or 3.Four%, from the first six months of 2019. The increase consists of revenue from wealth control sports, which grew eleven.2% from the primary 1/2 of 2019 to the primary half of 2020.

Noninterest Expense

Noninterest fee for the first six months of 2020 become $32,912,000, an growth of $nine,966,000, or 43.4%, from the same period in 2019. Nonrecurring acquisition and integration expenses related to the acquisition of FCBI have been $five,965,000 for the first six months of 2020. Salaries and employee advantages expense extended by using $2,952,000 from the first half of of 2019, that's often because of higher staffing ranges from the FCBI acquisition and extra group of workers employed to assist sales technology throughout all business traces.

Dividends

Quarterly cash dividends paid to ACNB Corporation shareholders inside the first half of of 2020 totaled $four,335,000, or $0.50 in keeping with proportion. In the first half of 2019, ACNB Corporation paid $0.48 per percentage for total dividends paid to shareholders in the amount of $three,383,000. When comparing the first half of of 2019 to the first half of of 2020, the increase in general dividends paid is also a end result of the addition of new shareholders from the FCBI acquisition in January 2020.

Non-GAAP Financial Measures

ACNB Corporation uses non-GAAP financial measures to provide information useful to investors in knowledge our working overall performance and traits, and to facilitate comparisons with the overall performance of our peers. Management uses these measures internally to assess and higher recognize our underlying commercial enterprise overall performance and trends associated with core business sports. The non-GAAP economic measures and key performance indicators we use might also range from the non-GAAP monetary measures and key performance signs other monetary institutions use to measure their overall performance and developments.

Non-GAAP monetary measures have to be considered similarly to, and now not as an alternative for, our stated results organized in accordance with GAAP. In the occasion of any such disclosure or release, the Securities and Exchange Commission’s (SEC) Regulation G requires: (i) the presentation of the maximum immediately similar monetary measure calculated and supplied according with GAAP and (ii) a reconciliation of the differences among the non-GAAP monetary measure presented and the maximum without delay comparable economic measure calculated and supplied in accordance with GAAP. Reconciliations of GAAP to non-GAAP running measures to the maximum without delay comparable GAAP financial measures are blanketed inside the tables on the stop of this release.

Management believes merger-associated costs are not organic charges attendant to operations and centers. These prices basically constitute expenses to satisfy contractual responsibilities of the obtained entity, with none beneficial advantage to us, to transform and consolidate the entity’s statistics, systems and information onto our structures, and professional costs related to the transaction. These prices are specific to each man or woman transaction and might range appreciably based on the size and complexity of the transaction.