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''ACNB Corporation Reports 2019 Second Quarter Financial Results

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August 01, 2019
    Net income for the three months ended June 30, 2019, totaled $6,466,000, which is an increase of$959,000 or 17.4% over comparable period results for the three months ended June 30, 2018.
    Net income for the six months ended June 30, 2019, totaled $12,330,000, which is an increase of$1,910,000 or 18.3% over comparable period results for the six months ended June 30, 2018.
    As publicly announced on July 2, 2019, geographic expansion efforts are underway for ACNB Corporation through the acquisition of Frederick County Bancorp, Inc., headquartered in Frederick, Maryland, and its wholly-owned subsidiary, Frederick County Bank.
    Geographic expansion commenced in Lancaster County, Pennsylvania, with the opening of the Lancaster Loan Office in May 2019.
    Net interest income for the six months ended June 30, 2019, totaled $29,635,000.
    Total loans outstanding were $1,279,264,000 at June 30, 2019.
    Total deposits were $1,377,277,000 at June 30, 2019.
    Quarterly cash dividends paid to ACNB Corporation shareholders in the first half of 2019 totaled$3,383,000 or $0.48 per share. It was recently announced the cash dividend declared for the third quarter of 2019 is $0.25 per share for the second consecutive quarter.
ACNB Corporation (NASDAQ: ACNB), financial holding company for ACNB Bank and Russell Insurance Group, Inc., announced financial results for the three months ended June 30, 2019, with net income of $6,466,000. Compared to net income of $5,507,000 for the three months ended June 30, 2018, this is an increase of $959,000 or 17.4% over comparable period results. Basic earnings per share was $0.92 and $0.78 for the three months ended June 30, 2019 and 2018, respectively, which is an increase of $0.14 or 17.9%.  
The Corporation reported net income of $12,330,000 for the six months ended June 30, 2019. Compared to net income of $10,420,000 for the six months ended June 30, 2018, this is an increase of $1,910,000 or 18.3% over comparable period results. Basic earnings per share was $1.75 and $1.48 for the six months ended June 30, 2019 and 2018, respectively, which is an increase of $0.27 or 18.2%.   
“ACNB Corporation’s strong earnings performance for the first half of 2019 was primarily the result of improved net interest income and attentive expense management,” said James P. Helt, ACNB Corporation President & CEO. “In working with customers, we continually strive to build relationships and find solutions as the keystone of ACNB Corporation’s strategic vision.” 
“Solid banking and insurance operations have produced both current and future benefits for ACNB Corporation and its shareholders,” he continued. “Geographic expansion initiatives, including the opening of the Lancaster Loan Office in May 2019, and the anticipated acquisition of Frederick County Bancorp, Inc. and its wholly-owned subsidiary, Frederick County Bank, in the fourth quarter of 2019 or first quarter of 2020 further this vision.” 
Revenues 
Total revenues, defined as net interest income plus noninterest income, for the first two quarters of 2019 were $38,395,000, or a 7.6% increase over total revenues of $35,682,000 for the first two quarters of 2018. Total interest income for the first half of 2019 was $34,340,000, or an increase of 10.4%, as compared to total interest income of $31,119,000 for the first half of 2018.  
Loans 
Total loans outstanding were $1,279,264,000 at June 30, 2019. Loans outstanding decreased by $23,201,000, or 1.8%, due to seasonality and early payoffs since December 31, 2018, and increased by $32,466,000, or 2.6%, from June 30, 2018 to June 30, 2019. Year over year, loan growth is primarily in the commercial loan portfolio with a focus on asset quality and disciplined underwriting standards despite the 
intense competition in the Corporation’s market areas. As a result of normal and anticipated credit losses in the portfolio, the provision for loan losses for the first half of 2019 was $275,000.  
Deposits 
Total deposits were $1,377,277,000 at June 30, 2019. Deposits increased by $29,185,000, or 2.2%, from December 31, 2018, and by $43,302,000, or 3.3%, from June 30, 2018 to June 30, 2019. Year over year, deposit growth is a function of pricing and the level of deposits held by existing and new customers, especially in the segment of municipal depositors.  
Net Interest Income and Margin 
Net interest income rose by $1,982,000 to $29,635,000 for the first six months of 2019, which is an increase of 7.2% compared to the first six months of 2018. The net interest margin for the first half of 2019 was 3.91%, compared to 3.78% for the same period of 2018. Both net interest income and the net interest margin were positively impacted by the organic growth in loans experienced from June 30, 2018 to June 30, 2019.  
Noninterest Income 
Noninterest income for the first six months of 2019 was $8,760,000, an increase of $731,000, or 9.1%, from the first six months of 2018. The increase includes both revenue from wealth management activities and insurance sales commissions, which grew 5.3% and 11.2%, respectively, from the first half of 2018 to the first half of 2019. 
Noninterest Expense 
Noninterest expense for the first six months of 2019 was $22,946,000, an increase of $709,000, or 3.2%, from the same period in 2018. The increase in noninterest expense is attributable to normal business operations and a growing community banking footprint, both balanced by management’s continued focus on expense control.  
Quarterly cash dividends paid to ACNB Corporation shareholders in the first half of 2019 totaled $3,383,000, or $0.48 per share. In the first half of 2018, ACNB Corporation paid $0.43 per share for total dividends paid to shareholders in the amount of $3,023,000.  
About ACNB Corporation 
ACNB Corporation, headquartered in Gettysburg, PA, is the $1.7 billion financial holding company 
for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, and Russell Insurance Group, 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 22 community banking offices, 
located in the four southcentral Pennsylvania counties of Adams, Cumberland, Franklin and York, as well as loan offices in Lancaster and York, PA, and Hunt Valley, MD. As a division of ACNB Bank, NWSB 
Bank serves its marketplace via a network of seven community banking offices located in Carroll County, MD. Russell Insurance Group, Inc., the Corporation’s insurance subsidiary, is a full-service agency with
licenses in 44 states. The agency offers a broad range of property and casualty and group life and health 
insurance serving individual and commercial clients through office locations in Westminster, Germantown and Jarrettsville, MD. For more information regarding ACNB Corporation and its subsidiaries, please visit 
acnb.com. 


Contact:
Lynda L. Glass
EVP/Secretary &  
Chief Governance Officer    
717.339.5085 
lglass@acnb.com