ACNB Corporation Reports 2025 Third Quarter Financial Results

GETTYSBURG, Pa., Oct. 23, 2025 (GLOBE NEWSWIRE) — ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced net income of $14.9 million, or $1.42 diluted earnings per share, for the three months ended September 30, 2025 compared to net income of $7.2 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2024 and compared to net income of $11.6 million, or $1.11 diluted earnings per share, for the three months ended June 30, 2025.

  • Fully taxable equivalent (“FTE”) net interest margin was 4.27% for the three months ended September 30, 2025 compared to 4.21% for the three months ended June 30, 2025 and 3.77% for the three months ended September 30, 2024.
  • Return on average assets was 1.80% and return on average equity was 14.66% for the three months ended September 30, 2025.
  • Total non-performing loans to total loans, net of unearned income, was 0.43% at September 30, 2025 compared to 0.43% at June 30, 2025 and 0.39% at September 30, 2024. Net charge-offs to average loans outstanding (annualized) were 0.02% for the three months ended September 30, 2025 compared to 0.01% for the three months ended June 30, 2025 and 0.01% for the three months ended September 30, 2024.
  • Tangible common equity to tangible assets ratio1 of 10.14% at September 30, 2025 compared to 9.65% at June 30, 2025 and 10.74% at September 30, 2024. The net unrealized loss on the available for sale securities portfolio was $31.0 million at September 30, 2025 compared to a net unrealized loss of $36.2 million at June 30, 2025 and a net unrealized loss of $36.8 million at September 30, 2024.
  • As announced on Form 8-K on October 22, 2025, the Board of Directors approved and declared a regular quarterly cash dividend of $0.38 per share of ACNB Corporation common stock for the fourth quarter, reflecting a $0.04, or 11.8%, increase over the prior quarter, and $0.06, or 18.8%, increase over the same period of 2024.
  • ACNB repurchased 61,586 shares of ACNB common stock in open market transactions for the three months ended September 30, 2025.

____________________

1
Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.

ACNB’s financial results for the first three quarters of 2025 were impacted by the acquisition of Traditions Bancorp, Inc. (“Traditions”) 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 months ended September 30, 2025 may not be directly comparable to prior reported periods.

“We are excited to report strong profitability and record quarterly net income for the third quarter of 2025. These strong results are a reflection of our continued commitment to our community banking business model and the successful acquisition and integration of Traditions Bank earlier in the year. The Acquisition is meeting our expectations operationally, financially and culturally.” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

“This quarter represented continued stable asset quality metrics, increased profitability and active capital management strategies including open market share repurchases and a strong dividend. These results are a direct result of our entire team working toward our vision to be financial services provider of choice in the markets we serve by building relationships and finding solutions.”

Mr. Helt continued, “We now look to finish the year strong by managing through the economic cycles and by continuing to diversify our revenue streams with ACNB Insurance Services, ACNB Wealth Management and Traditions Mortgage. We believe that our strong foundation based on community banking principles combined with the growth opportunities before us through our strategic planning objectives will enable us to continue to provide for long term shareholder growth.”

Net Interest Income and Margin

Net interest income for the three months ended September 30, 2025 totaled $32.1 million, an increase of $1.1 million from the three months ended June 30, 2025 and an increase of $11.2 million from the three months ended September 30, 2024. The FTE net interest margin for the three months ended September 30, 2025 was 4.27%, a 6 basis points increase from the three months ended June 30, 2025 and a 50 basis points increase from the three months ended September 30, 2024. The increase in FTE net interest margin from the three months ended June 30, 2025 was driven primarily by a 7 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 balances of higher cost deposits from the Acquisition during the three months ended September 30, 2025. For the three months ended September 30, 2025, total average earning assets increased $28.5 million compared to the three months ended June 30, 2025. For the three months ended September 30, 2025, total average noninterest-bearing demand deposits increased $30.5 million from the three months ended June 30, 2025. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $2.1 million and $2.2 million for the three months ended September 30, 2025 and the three months ended June 30, 2025, respectively.

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 September 30, 2025, total average loans increased $675.4 million compared to the three months ended September 30, 2024. The yield on total loans was 6.29% for the three months ended September 30, 2025, an increase of 73 basis points compared to the three months ended September 30, 2024. For the three months ended September 30, 2025, total average interest-bearing deposits increased $575.6 million from the three months ended September 30, 2024. The average rate paid on interest-bearing deposits was 1.42% for the three months ended September 30, 2025, an increase of 50 basis points from the three months ended September 30, 2024. For the three months ended September 30, 2025, total average noninterest-bearing demand deposits increased $116.5 million from the three months ended September 30, 2024.

Noninterest Income

Noninterest income for the three months ended September 30, 2025 was $8.4 million, a decrease of $271 thousand from the three months ended June 30, 2025 and an increase of $1.6 million from the three months ended September 30, 2024. Insurance commissions for the three months ended September 30, 2025 were $2.5 million, a decrease of $363 thousand from the three months ended June 30, 2025 driven primarily by lower contingent commission income and a decrease of $242 thousand from the three months ended September 30, 2024 driven primarily by timing of policy renewals and a decrease of $121 thousand from the cancellation of policies related to one customer. Gain from mortgage loans held for sale for the three months ended September 30, 2025 was $1.5 million, a decrease of $112 thousand from the three months ended June 30, 2025 and an increase of $1.4 million from the three months ended September 30, 2024. Service charges on deposits were $1.3 million, an increase of $107 thousand from the three months ended June 30, 2025 and an increase of $238 thousand from the three months ended September 30, 2024 driven primarily by the Acquisition and an increase in overall customer activity.

Noninterest Expense

Noninterest expense for the three months ended September 30, 2025 decreased $3.0 million from the three months ended June 30, 2025 and increased $4.1 million from the three months ended September 30, 2024. Merger-related expenses totaled $169 thousand for the three months ended September 30, 2025 compared to $1.9 million for the three months ended June 30, 2025 and $1.1 million for the three months ended September 30, 2024. Salaries and employee benefits expense for the three months ended September 30, 2025 decreased $502 thousand compared to three months ended June 30, 2025 driven primarily by a higher employee vacancy rate, lower incentive compensation expense, lower overtime, conversion related expense and lower health insurance expense, and increased $2.2 million compared to the three months ended September 30, 2024 driven primarily by additional employees attributable to the Acquisition, merit increases, and higher mortgage commissions. Equipment expense for the three months ended September 30, 2025 decreased $237 thousand compared to the three months ended June 30, 2025, driven primarily by a rebate received from a large vendor during the three months ended September 30, 2025 and increased $604 thousand compared to the three months ended September 30, 2024 driven primarily by the Acquisition and the implementation of new additional products into our core processing system. Other tax increased $341 thousand for the three months ended September 30, 2025 compared to the three months ended June 30, 2025 driven primarily by earned income tax credits recognized in the prior period and increased $201 thousand compared to the three months ended September 30, 2024 driven primarily by the Acquisition. Intangible assets amortization increased $825 thousand during the three months ended September 30, 2025 compared to the three months ended September 30, 2024, a result of the Acquisition. Other decreased $628 thousand for the three months ended September 30, 2025 compared to the three months ended June 30, 2025 driven primarily by earned income tax related donations and stale conversion related items written off in the prior period and increased $738 thousand compared to the three months ended September 30, 2024 driven primarily by the Acquisition and higher internet banking services.

Loans and Asset Quality

Total loans outstanding were $2.34 billion at September 30, 2025, a decrease of $5.2 million from June 30, 2025 and an increase of $659.5 million from September 30, 2024. The decrease compared to June 30, 2025 was across residential mortgage, commercial and industrial, real estate construction and consumer and was partially offset by increases in commercial real estate and home equity lines of credit. The increase compared to September 30, 2024 was spread across all loan categories and was driven primarily by the Acquisition. The allowance for credit losses was $23.7 million at September 30, 2025, a decrease of $693 thousand compared to June 30, 2025 and an increase of $6.4 million compared to September 30, 2024. The decrease compared to June 30, 2025 was driven primarily by the movement of construction loans to lower loss rate segments and the paydowns of loans with a specific reserve. The increase compared to September 30, 2024 was driven primarily by the Acquisition.

Deposits and Borrowings

Deposits totaled $2.47 billion at September 30, 2025, a decrease of $58.6 million from June 30, 2025 and an increase of $674.6 million from September 30, 2024. Total interest-bearing deposits were $1.88 billion at September 30, 2025, a decrease of $72.0 million from June 30, 2025 and an increase of $556.4 million from September 30, 2024. Money market and time deposits, included in interest-bearing deposits, decreased $38.3 million and $34.0 million, respectively, since June 30, 2025 and increased $244.2 million and $189.7 million, respectively, since September 30, 2024. The decreases in money market and time deposits from June 30, 2025 were driven primarily by lower balances of higher cost money market and time deposits from the Acquisition and a net decline of $20.0 million of short-term brokered deposits. Included in total deposits at September 30, 2025 were $581.7 million of noninterest-bearing deposits, which increased $13.4 million and $118.2 million from June 30, 2025 and September 30, 2024, respectively. The overall increase in total deposits compared to September 30, 2024 was driven primarily by the Acquisition.

Total borrowings were $335.8 million at September 30, 2025, an increase of $37.4 million and $42.7 million compared to June 30, 2025 and September 30, 2024, respectively. Total borrowings increased from June 30, 2025 driven primarily by an increase in short-term borrowings. The bank executed a three month FHLB borrowing of $25.0 million at a rate of 4.55% for the three months ended September 30, 2025. Simultaneously, the Bank executed a receive-floating, pay-fixed three year interest rate swap at a rate of 3.53%.

Stockholders’ Equity

Total stockholders’ equity was $408.6 million at September 30, 2025 compared to $395.2 million at June 30, 2025 and $306.8 million at September 30, 2024. The increase at September 30, 2025 compared to June 30, 2025 was driven primarily by net income of $14.9 million and a $4.3 million change in unrealized gains in available for sale investment securities slightly offset by dividends paid of $3.5 million and common stock repurchased of $2.7 million for the three months ended September 30, 2025. The increase at September 30, 2025 compared to September 30, 2024 was driven primarily by the common stock equity issued in the Acquisition. Tangible book value1 per share was $30.87, $29.30 and $29.90 at September 30, 2025, June 30, 2025 and September 30, 2024, respectively.

About ACNB Corporation

ACNB Corporation, headquartered in Gettysburg, PA, is the independent $3.25 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.

____________________

1
Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.

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. 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.

Contact:
Jason H. Weber 
EVP/Treasurer &
Chief Financial Officer
717.339.5090
[email protected]

ACNB #2025-10
October 23, 2025


ACNB Corporation Financial Highlights

Selected Financial Data by Respective Quarter End
(Unaudited)
           
(Dollars in thousands, except per share data) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024
BALANCE SHEET DATA          
Total assets $         3,250,838   $         3,259,528   $         3,270,041   $         2,394,830   $         2,420,914  
Investment securities   526,570     520,758     521,306     459,472     483,604  
Total loans, net of unearned income   2,336,605     2,341,816     2,322,209     1,682,910     1,677,112  
Allowance for credit losses   (23,660 )   (24,353 )   (24,646 )   (17,280 )   (17,214 )
Deposits   2,465,896     2,524,541     2,540,009     1,792,501     1,791,317  
Allowance for unfunded commitments   1,384     1,529     1,883     1,394     1,349  
Borrowings   335,833     298,395     299,531     271,159     293,091  
Stockholders’ equity   408,642     395,151     386,883     303,273     306,755  
INCOME STATEMENT DATA          
Interest and dividend income $         42,490   $         41,576   $         36,290   $         27,381   $         27,241  
Interest expense   10,353     10,564     9,200     6,269     6,299  
Net interest income   32,137     31,012     27,090     21,112     20,942  
(Reversal of) provision for credit losses   (584 )   (228 )   5,968     249     81  
(Reversal of) provision for unfunded commitments   (145 )   (354 )   (480 )   44     40  
Net interest income after (reversal of) provisions for credit losses and unfunded commitments   32,866     31,594     21,602     20,819     20,821  
Noninterest income   8,411     8,682     7,184     5,803     6,833  
Noninterest expenses   22,361     25,366     29,335     18,388     18,244  
Income (loss) before income taxes   18,916     14,910     (549 )   8,234     9,410  
Income tax expense (benefit)   4,046     3,262     (277 )   1,639     2,206  
Net income (loss) $         14,870   $         11,648   $         (272 ) $         6,595   $         7,204  
PROFITABILITY RATIOS          
Total loans, net of unearned income to deposits   94.76 %   92.76 %   91.43 %   93.89 %   93.62 %
Return on average assets (annualized)   1.80     1.43     (0.04 )   1.08     1.17  
Return on average equity (annualized)   14.66     11.96     (0.31 )   8.57     9.63  
Efficiency ratio1   51.96     56.21     60.13     63.83     60.56  
FTE Net interest margin   4.27     4.21     4.07     3.81     3.77  
Yield on average earning assets   5.64     5.64     5.45     4.93     4.90  
Yield on investment securities   3.03     2.95     2.91     2.58     2.59  
Yield on total loans   6.29     6.29     6.08     5.61     5.56  
Cost of funds   1.45     1.50     1.45     1.19     1.19  
PER SHARE DATA          
Diluted earnings (loss) per share $         1.42   $         1.11   $         (0.03 ) $         0.77   $         0.84  
Cash dividends paid per share   0.34     0.34     0.32     0.32     0.32  
Tangible book value per share1   30.87     29.30     28.23     29.51     29.90  
CAPITAL RATIOS
2
         
Tier 1 leverage ratio   11.22 %   10.97 %   11.81 %   12.52 %   12.46 %
Common equity tier 1 ratio   14.45     13.96     13.65     16.27     16.07  
Tier 1 risk based capital ratio   14.67     14.17     13.86     16.56     16.36  
Total risk based capital ratio   16.22     15.75     15.45     18.36     18.15  
CREDIT QUALITY

Net charge-offs to average loans outstanding
         
(annualized)   0.02 %   0.01 %   0.01 %   0.04 %   0.01 %
Total non-performing loans to total loans, net of unearned income3   0.43     0.43     0.43     0.40     0.39  
Total non-performing assets to total assets4   0.31     0.31     0.32     0.30     0.29  
Allowance for credit losses to total loans, net of unearned income   1.01     1.04     1.06     1.03     1.03  

____________________

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 September 30, 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) September 30, 2025 June 30, 2025 September 30, 2024
ASSETS      
Cash and due from banks $         30,500   $         32,834   $         24,636  
Interest-bearing deposits with banks   71,639     70,275     33,456  
   Total Cash and Cash Equivalents   102,139     103,109     58,092  
Equity securities with readily determinable fair values   945     936     947  
Investment securities available for sale, at estimated fair value   462,217     455,317     418,079  
Investment securities held to maturity, at amortized cost (fair value
$56,932, $56,420 and $59,038)
  63,408     64,505     64,578  
Loans held for sale   16,850     16,455     1,080  
Total loans, net of unearned income   2,336,605     2,341,816     1,677,112  
Less: Allowance for credit losses   (23,660 )   (24,353 )   (17,214 )
Loans, net   2,312,945     2,317,463     1,659,898  
Premises and equipment, net   31,107     31,581     25,542  
Right of use asset   4,403     4,657     2,110  
Restricted investment in bank stocks   14,462     13,533     10,853  
Investment in bank-owned life insurance   96,755     96,104     81,344  
Investments in low-income housing partnerships   783     814     909  
Goodwill   64,449     64,449     44,185  
Intangible assets, net   23,565     24,694     8,142  
Assets held for sale   275          
Foreclosed assets held for resale   32     32     406  
Other assets   56,503     65,879     44,749  
   Total Assets $         3,250,838   $         3,259,528   $         2,420,914  
                   
LIABILITIES AND STOCKHOLDERS’ EQUITY                  
Deposits:
                 
Noninterest-bearing $
581,697
  $ 568,301   $ 463,501  
Interest-bearing   1,884,199
    1,956,240     1,327,816  
   Total Deposits   2,465,896
    2,524,541     1,791,317  
Short-term borrowings   80,468
    43,041     37,769  
Long-term borrowings   255,365
    255,354     255,322  
Lease liability   4,696
    4,946     2,110  
Allowance for unfunded commitments   1,384
    1,529     1,349  
Other liabilities   34,387
    34,966     26,292  
Total Liabilities   2,842,196
    2,864,377     2,114,159  
                   
Stockholders’ Equity:
                 
Preferred Stock, $2.50 par value, 20,000,000 shares authorized; no shares outstanding at September 30, 2025, June 30, 2025 and September 30, 2024  
         
Common stock, $2.50 par value, 20,000,000 shares authorized; 11,023,573, 11,017,121, and 8,940,133 shares issued; 10,423,015, 10,478,149, and 8,548,625 shares outstanding at September 30, 2025, June 30, 2025 and September 30, 2024, respectively   27,555
    27,539     22,344  
Treasury stock, at cost, 600,558, 538,972, and 391,508 at September 30, 2025, June 30, 2025, and September 30, 2024, respectively   (19,875
)   (17,167 )   (11,203 )
Additional paid-in capital   179,130
    178,553     98,697  
Retained earnings   250,410
    239,077     230,752  
Accumulated other comprehensive loss   (28,578
)   (32,851 )   (33,835 )
Total Stockholders’ Equity   408,642
    395,151     306,755  
Total Liabilities and Stockholders’ Equity
$
3,250,838
  $ 3,259,528   $ 2,420,914  
                   

Consolidated Income Statements

(Unaudited)
 
  Three Months Ended September 30,  Nine Months Ended September 30,
(Dollars in thousands, except per share data)   2025     2024   2025     2024  
INTEREST AND DIVIDEND INCOME        
Loans, including fees:        
Taxable $         36,961   $         23,108 $         105,192   $         67,253  
Tax-exempt   324     311   933     943  
Investment securities:        
Taxable   3,430     2,617   9,615     8,193  
Tax-exempt   281     284   852     852  
Dividends   332     251   979     739  
Other   1,162     670   2,785     2,104  
  Total Interest and Dividend Income   42,490     27,241   120,356     80,084  
INTEREST EXPENSE        
Deposits   6,872     3,112   20,152     7,915  
Short-term borrowings   513     204   1,148     847  
Long-term borrowings   2,968     2,983   8,817     8,823  
  Total Interest Expense   10,353     6,299   30,117     17,585  
  Net Interest Income   32,137     20,942   90,239     62,499  
(Reversal of) provision for credit losses   (584 )   81   5,156     (2,686 )
(Reversal of) provision for unfunded commitments   (145 )   40   (979 )   (370 )
Net Interest Income after (Reversal of) Provisions for Credit Losses and Unfunded Commitments   32,866     20,821   86,062     65,555  
NONINTEREST INCOME        
Insurance commissions   2,545     2,787   7,600     7,649  
Service charges on deposits   1,286     1,048   3,559     3,060  
Wealth management   1,125     1,188   3,275     3,219  
Gain from mortgage loans held for sale   1,463     112   3,893     194  
ATM debit card charges   904     828   2,640     2,488  
Earnings on investment in bank-owned life insurance   651     503   1,858     1,473  
Gain on life insurance proceeds         285      
Net gains on sales or calls of investment securities         22     69  
Net gains on equity securities   9     28   26     19  
Other   428     339   1,119     756  
  Total Noninterest Income   8,411     6,833   24,277     18,927  
NONINTEREST EXPENSES        
Salaries and employee benefits   13,191     11,017   39,745     32,611  
Equipment   2,302     1,698   7,121     4,997  
Net occupancy   1,217     945   3,936     3,066  
Professional services   588     409   1,908     1,554  
FDIC and regulatory   457     365   1,293     1,088  
Other tax   561     360   1,308     1,086  
Intangible assets amortization   1,129     304   3,127     940  
Merger-related   169     1,137   10,143     1,160  
Other   2,747     2,009   8,481     5,795  
  Total Noninterest Expenses   22,361     18,244   77,062     52,297  
  Income Before Income Taxes   18,916     9,410   33,277     32,185  
Income tax expense   4,046     2,206   7,031     6,934  
Net Income $         14,870   $         7,204 $         26,246   $         25,251  
PER SHARE DATA        
Basic earnings $         1.43   $         0.85 $         2.57   $         2.97  
Diluted earnings $         1.42   $         0.84 $         2.56   $         2.96  
Weighted average shares basic   10,419,581     8,507,140   10,228,029     8,500,860  
Weighted average shares diluted   10,455,461     8,545,578   10,257,800     8,532,691  
                       

Average Balances, Income and Expenses, Yields and Rates
   
  Three months ended
September 30, 2025
 Three months ended
June 30, 2025
 Three months ended
March 31, 2025
Three months ended
December 31, 2024
Three months ended
September 30, 2024
(Dollars in thousands)


  Average
Balance
    Interest1
  Yield/ Rate
    Average

Balance
    Interest

1
  Yield/ Rate     Average

Balance
    Interest

1
  Yield/ Rate     Average

Balance
    Interest

1
  Yield/ Rate     Average

Balance
    Interest

1
  Yield/ Rate  
ASSETS
                                                                               
Loans:                                                                                
Taxable $ 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 % $ 1,618,879   $ 23,108   5.68 %
Tax-exempt   58,587     410   2.78     58,903     401   2.73     57,969     370   2.59     57,683     366   2.52     62,401     394   2.51  
Total Loans

2
  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     1,681,280     23,502   5.56  
Investment Securities:                              
Taxable   485,309     3,762   3.08     482,933     3,590   2.98     447,986     3,242   2.93     431,338     2,786   2.57     441,135     2,868   2.59  
Tax-exempt   53,165     356   2.66     54,261     358   2.65     54,659     365   2.71     54,453     359   2.62     54,549     359   2.62  
Total Investments

3
  538,474     4,118   3.03     537,194     3,948   2.95     502,645     3,607   2.91     485,791     3,145   2.58     495,684     3,227   2.59  
Interest-bearing deposits with banks   103,290     1,162   4.46     77,348     831   4.31     73,181     792   4.39     60,104     728   4.82     48,794     670   5.46  
Total Earning Assets   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     2,225,758     27,399   4.90  
Cash and due from banks   26,709         25,610         20,603         20,413         21,684      
Premises and equipment   31,514         32,019         29,903         25,679         25,716      
Other assets   245,899         255,624         224,522         181,180         184,105      
Allowance for credit losses   (24,312 )       (24,615 )       (19,939 )       (17,153 )       (17,147 )    
Total Assets $ 3,278,215       $ 3,258,512       $ 2,969,115       $ 2,432,942       $ 2,440,116      
LIABILITIES                                        
Interest-bearing demand deposits $ 616,565     $         570   0.37 % $ 612,812     $         514   0.34 % $ 573,341     $         524   0.37 % $ 519,833     $         511   0.39 % $ 518,368     $         552   0.42 %
Money markets   510,655       2,530   1.97     536,755       2,706   2.02     447,297       1,984   1.80     251,781       747   1.18     246,653       692   1.12  
Savings deposits   335,083       26   0.03     342,327       27   0.03     331,103       27   0.03     315,512       34   0.04     318,291       26   0.03  
Time deposits   454,625       3,746   3.27     473,589       4,037   3.42     410,749       3,461   3.42     268,559       1,987   2.94     258,053       1,842   2.84  
Total Interest-Bearing Deposits   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     1,341,365       3,112   0.92  
Short-term borrowings   70,389       513   2.89     44,515       341   3.07     38,721       294   3.08     23,087       12   0.21     38,666       204   2.10  
Long-term borrowings   255,358       2,968   4.61     255,347       2,939   4.62     257,558       2,910   4.58     255,326       2,978   4.64     255,316       2,983   4.65  
Total Borrowings   325,747       3,481   4.24     299,862       3,280   4.39     296,279       3,204   4.39     278,413       2,990   4.27     293,982       3,187   4.31  
Total Interest-Bearing Liabilities   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     1,635,347       6,299   1.53  
Noninterest-bearing demand deposits   593,800           563,321           512,966           464,949           477,350        
Other liabilities   39,397           39,271           36,934           27,887           29,946        
Stockholders’ Equity   402,343           390,575           360,446           306,008           297,473        
Total Liabilities and Stockholders’ Equity $ 3,278,215         $ 3,258,512         $ 2,969,115         $ 2,432,942         $ 2,440,116        
Taxable Equivalent Net Interest Income       32,298           31,171           27,245           21,264           21,100    
Taxable Equivalent Adjustment       (161 )         (159 )         (155 )         (152 )         (158 )  
Net Interest Income     $ 32,137         $ 31,012         $ 27,090         $ 21,112         $ 20,942    
Cost of Funds       1.45 %       1.50 %       1.45 %       1.19 %       1.19 %
FTE Net Interest Margin       4.27 %       4.21 %       4.07 %       3.81 %       3.77 %

____________________

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.

   
  Nine months ended September 30, 2025   Nine months ended September 30, 2024
(Dollars in thousands)


Average

Balance  
Interest

1
Yield/ Rate Average

Balance  
Interest

1
Yield/ Rate
ASSETS                              
Loans:                                
Taxable $         2,225,652   $         105,192   6.32 % $         1,601,520   $         67,253   5.61 %
Tax-exempt   58,489     1,181   2.70     64,161     1,194   2.49  
Total Loans

2
  2,284,141     106,373   6.23     1,665,681     68,447   5.49  
Investment Securities:            
Taxable   472,212     10,594   3.00     450,297     8,932   2.65  
Tax-exempt   54,023     1,078   2.67     54,644     1,078   2.64  
Total Investments

3
  526,235     11,672   2.97     504,941     10,010   2.65  
Interest-bearing deposits with banks   84,717     2,785   4.40     51,258     2,104   5.48  
Total Earning Assets   2,895,093     120,830   5.58     2,221,880     80,561   4.84  
Cash and due from banks   24,330         21,091      
Premises and equipment   31,151         25,939      
Other assets   242,143         186,330      
Allowance for credit losses   (22,971 )       (19,071 )    
Total Assets $         3,169,746       $         2,436,169      
LIABILITIES            
Interest-bearing demand deposits $         601,064   $         1,608   0.36 % $         514,757     $         1,092   0.28 %
Money markets   498,468     7,220   1.94     247,710       1,841   0.99  
Savings deposits   336,185     80   0.03     326,895       84   0.03  
Time deposits   446,482     11,244   3.37     255,203       4,898   2.56  
Total Interest-Bearing Deposits   1,882,199     20,152   1.43     1,344,565       7,915   0.79  
Short-term borrowings   51,324     1,148   2.99     40,993       847   2.76  
Long-term borrowings   256,080     8,817   4.60     253,116       8,823   4.66  
Total Borrowings   307,404     9,965   4.33     294,109       9,670   4.39  
Total Interest-Bearing Liabilities   2,189,603     30,117   1.84     1,638,674       17,585   1.43  
Noninterest-bearing demand deposits   556,992         483,095        
Other liabilities   38,543         28,406        
Stockholders’ Equity   384,608         285,994        
Total Liabilities and Stockholders’ Equity $         3,169,746       $         2,436,169        
Taxable Equivalent Net Interest Income     90,713           62,976    
Taxable Equivalent Adjustment     (474 )         (477 )  
Net Interest Income  
$
        90,239         $         62,499    
Cost of Funds     1.47 %       1.11 %
FTE Net Interest Margin     4.19 %       3.79 %

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)


  September
30, 2025
    June
30, 2025
    September
30, 2024
    September 2025 vs.

June 2025
    September 2025 vs.

September 2024
 
Loans                              
Commercial real estate $         1,263,896   $         1,254,733   $         957,904   $         9,163   $         305,992  
Residential mortgage   593,283     594,889     397,994     (1,606 )   195,289  
Commercial and industrial   218,364     226,276     152,148     (7,912 )   66,216  
Home equity lines of credit   125,839     122,546     84,316     3,293     41,523  
Real estate construction   126,451     135,023     75,953     (8,572 )   50,498  
Consumer   10,144     10,253     9,773     (109 )   371  
Gross loans   2,337,977     2,343,720     1,678,088     (5,743 )   659,889  
Unearned income   (1,372 )   (1,904 )   (976 )   532     (396 )
Total loans, net of unearned income $         2,336,605   $         2,341,816   $         1,677,112   $         (5,211 ) $         659,493  

   
              Variance

(

Dollars in thousands) 

 

  September
30, 2025 
  June
30, 2025  
  September
30, 2024
  September 2025 vs.

June 2025
    September 2025 vs.

September 2024
Deposits                      
Noninterest-bearing demand deposits $         581,697 $         568,301 $         463,501 $         13,396   $         118,196
Interest-bearing demand deposits   614,130   604,854   509,930   9,276     104,200
Money market   493,430   531,738   249,197   (38,308 )   244,233
Savings   330,200   339,179   311,958   (8,979 )   18,242
Total demand and savings   2,019,457   2,044,072   1,534,586   (24,615 )   484,871
Time   446,439   480,469   256,731   (34,030 )   189,708
Total deposits $         2,465,896 $         2,524,541 $         1,791,317 $         (58,645 ) $         674,579
                       

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.

  Three Months Ended
(Dollars in thousands, except per share data) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024

Tangible book value per share
         
Stockholders’ equity $         408,642   $         395,151   $         386,883   $         303,273   $         306,755  
Less: Goodwill and intangible assets   (88,014 )   (89,143 )   (90,284 )   (52,023 )   (52,327 )
Tangible common stockholders’ equity (numerator) $         320,628   $         306,008   $         296,599   $         251,250   $         254,428  
Shares outstanding, less unvested shares, end of period (denominator)   10,387,135     10,442,269     10,506,822     8,515,347     8,510,187  
Tangible book value per share $         30.87   $         29.30   $         28.23   $         29.51   $         29.90  

Tangible common equity to tangible assets (TCE/TA Ratio)
         
Tangible common stockholders’ equity (numerator) $         320,628   $         306,008   $         296,599   $         251,250   $         254,428  
Total assets $         3,250,838   $         3,259,528   $         3,270,041   $         2,394,830   $         2,420,914  
Less: Goodwill and intangible assets   (88,014 )   (89,143 )   (90,284 )   (52,023 )   (52,327 )
Total tangible assets (denominator) $         3,162,824   $         3,170,385   $         3,179,757   $         2,342,807   $         2,368,587  
Tangible common equity to tangible assets   10.14 %   9.65 %   9.33 %   10.72 %   10.74 %

Efficiency Ratio
         
Noninterest expense $         22,361   $         25,366   $         29,335   $         18,388   $         18,244  
Less: Intangible amortization   1,129     1,141     857     304     304  
Less: Merger-related expense   169     1,943     8,031     885     1,137  
Noninterest expense (numerator) $         21,063   $         22,282   $         20,447   $         17,199   $         16,803  
Net interest income $         32,137   $         31,012   $         27,090   $         21,112   $         20,942  
Plus: Total noninterest income   8,411     8,682     7,184     5,803     6,833  
Less: Gain on life insurance proceeds       31     254          
Less: Net gains on sales or calls of securities       22              
Less: Net gains (losses) on equity securities   9     3     14     (28 )   28  
Total revenue (denominator) $         40,539   $         39,638   $         34,006   $         26,943   $         27,747  
Efficiency ratio   51.96 %   56.21 %   60.13 %   63.83 %   60.56 %