- Net Income: $11.3 million, or $1.32 diluted earnings per share, for Q2 2024, up from $9.5 million, or $1.12 diluted earnings per share, in Q2 2023.
- Revenue: Net interest income of $21.0 million for Q2 2024, a decrease of 4.7% compared to Q2 2023.
- Return on Average Assets: 1.86% for Q2 2024, reflecting strong profitability metrics.
- Total Loans: $1.68 billion at June 30, 2024, an increase of $14.6 million from March 31, 2024, and up $105.8 million year-over-year.
- Total Deposits: $1.84 billion at June 30, 2024, marking the first linked quarter increase after nine consecutive quarterly declines.
- Noninterest Income: $6.4 million for Q2 2024, up 3.8% from Q2 2023, driven by increases in insurance commissions and wealth management income.
- Noninterest Expense: $16.4 million for Q2 2024, a slight increase of 0.7% from Q2 2023, primarily due to higher salaries and employee benefits.
On July 24, 2024, ACNB Corp (ACNB, Financial) released its 8-K filing reporting robust financial results for the second quarter of 2024. ACNB Corp, a financial holding company providing banking, insurance, and financial services through its subsidiaries ACNB Bank and ACNB Insurance Services, Inc., demonstrated significant growth and resilience in a challenging economic environment.
Performance Overview
ACNB Corp reported net income of $11.3 million, or $1.32 diluted earnings per share, for the three months ended June 30, 2024. This represents a notable increase from $9.5 million, or $1.12 diluted earnings per share, for the same period in 2023. The results also surpassed the analyst estimates of $1.20 earnings per share and $26.88 million in revenue.
Key financial highlights for the second quarter include:
- Return on average assets was 1.86% and return on average equity was 16.12%.
- Fully taxable equivalent (FTE) net interest margin increased to 3.82% from 3.77% in the previous quarter.
- Total loans grew to $1.68 billion, marking a 0.9% increase from the previous quarter and a 6.7% increase year-over-year.
- Total deposits rose to $1.84 billion, the first quarterly increase after nine consecutive declines.
- Non-performing loans decreased to 0.19% of total loans, down from 0.24% in the previous quarter.
Financial Achievements and Challenges
ACNB Corp's performance is particularly noteworthy given the economic challenges facing the financial services industry. The company's strategic focus on profitability and asset quality has yielded positive results. The reversal of $3.2 million in provisions for credit losses and unfunded commitments significantly impacted the quarterly results.
"We are pleased to announce strong results for the second quarter of 2024 which reflect our continued focus on profitability. In spite of the continued economic challenges to the financial services industry, our team remains focused on executing our strategic plan centered on our shareholders, customers, and our communities," said James P. Helt, ACNB Corporation President and Chief Executive Officer.
Income Statement and Balance Sheet Highlights
Net interest income for the quarter was $21.0 million, a decrease of 4.7% compared to the same period in 2023. The FTE net interest margin decreased by 29 basis points year-over-year, primarily due to increased long-term borrowings and promotional time deposit balances and costs. However, the net interest margin showed improvement from the previous quarter, driven by higher loan yields and stabilized deposit balances.
Noninterest income increased by 3.8% year-over-year to $6.4 million, with insurance commissions and wealth management income contributing positively. Noninterest expenses were $16.4 million, a slight increase from the previous year, primarily due to higher salaries and employee benefits.
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $11.3 million | $6.8 million | $9.5 million |
| Diluted EPS | $1.32 | $0.80 | $1.12 |
| Net Interest Income | $21.0 million | $20.6 million | $22.0 million |
| Noninterest Income | $6.4 million | $5.7 million | $6.2 million |
| Noninterest Expenses | $16.4 million | $17.7 million | $16.3 million |
Analysis and Outlook
ACNB Corp's strong financial performance in Q2 2024 underscores its effective management and strategic focus. The company's ability to increase net income and EPS amidst economic headwinds is commendable. The improvement in net interest margin and the stabilization of deposits are positive indicators for future performance.
Looking ahead, ACNB Corp's strong capital position, superior asset quality metrics, and focus on profitability are expected to support continued growth and value creation for shareholders. The company's diversified revenue streams, including contributions from ACNB Insurance Services and Wealth Management, provide additional stability and growth potential.
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from ACNB Corp for further details.
