Core Viewpoint - ACNB has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, ACNB is expected to earn $4.43 per share, with a 14.4% increase in the Zacks Consensus Estimate over the past three months [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, and changes in these estimates can lead to significant buying or selling activity, impacting stock prices [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - Stocks rated Zacks Rank 1 have historically generated an average annual return of +25% since 1988, showcasing the effectiveness of the system [7].

Financial Highlights - Total assets reached $3.3 billion[6] - Total loans amounted to $2.3 billion[6] - Market capitalization stood at $443 million[6] - Return on average assets (ROAA) was 1.36% for the most recent quarter (MRQ)[6] - Return on average equity (ROAE) was 11.23% for the MRQ[6] - Net interest margin (NIM) on a fully taxable equivalent (FTE) basis was 4.07% for the MRQ[6] Loan Portfolio & Deposits - Commercial loans constituted approximately 68% of the total loan portfolio[8] - Non-interest bearing demand deposits represented approximately 22% of the deposit portfolio[8] - Core deposits accounted for 97.1% of total deposits, with total deposits at $2.5 billion as of MRQ end[22] Noninterest Income & Expenses - Noninterest income was $7.2 million for the MRQ[26] - Noninterest income accounted for approximately 20.3% of revenues[8] - The company's efficiency ratio was 60.13% for the first quarter of 2025[37]

Core Viewpoint - ACNB Corporation has announced a new stock repurchase plan to buy back up to 314,000 shares, approximately 3.0% of its outstanding common stock, which will be funded by available capital [1] Company Overview - ACNB Corporation is an independent financial holding company with total assets of $3.27 billion, headquartered in Gettysburg, PA [2] - The company operates through its wholly-owned subsidiaries, including ACNB Bank and ACNB Insurance Services, Inc., providing banking and wealth management services across multiple locations [2] - ACNB Bank has a network of 33 community banking offices and one loan office in Pennsylvania and Maryland, while ACNB Insurance Services operates as a full-service insurance agency licensed in 46 states [2]

Group 1 - ACNB Corporation is the financial holding company for ACNB Bank located in Pennsylvania, which previously operated 27 community banking offices before acquiring Traditions Bancorp [1] - Traditions Bancorp was also headquartered in Pennsylvania, indicating a consolidation within the local banking sector [1] Group 2 - The investment group European Small Cap Ideas focuses on high-quality investment opportunities in the small-cap space, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Core Viewpoint - ACNB has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [3]. - Rising earnings estimates for ACNB suggest an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. Importance of Earnings Estimate Revisions - Empirical research supports the idea that tracking earnings estimate revisions can lead to rewarding investment decisions, with the Zacks Rank system effectively utilizing this data [5]. - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. Specific Earnings Estimates for ACNB - For the fiscal year ending December 2025, ACNB is projected to earn $4.43 per share, reflecting an 18.8% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for ACNB has risen by 3.4%, indicating a positive trend in earnings expectations [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [8]. - ACNB's upgrade to a Zacks Rank 1 places it in the top 5% of stocks covered by Zacks, suggesting a strong potential for market-beating returns in the near term [9].

Company Overview - ACNB is based in Gettysburg and operates in the Finance sector, with a year-to-date share price change of 10.47% [3] - The company currently pays a dividend of $0.32 per share, resulting in a dividend yield of 2.91%, which is significantly higher than the Banks - Southwest industry's yield of 1.16% and the S&P 500's yield of 1.52% [3] Dividend Information - ACNB's current annualized dividend of $1.28 represents a 1.6% increase from the previous year [4] - Over the past five years, ACNB has increased its dividend four times, achieving an average annual increase of 6.40% [4] - The company's current payout ratio is 32%, indicating that it pays out 32% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for ACNB appears strong, with the Zacks Consensus Estimate for 2025 projected at $4.43 per share, reflecting an expected increase of 18.77% from the previous year [5] Investment Appeal - ACNB is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Group 1 - CME Group is one of 858 individual stocks in the Finance sector and is ranked 6 in the Zacks Sector Rank [2] - CME Group currently has a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3] - The Zacks Consensus Estimate for CME's full-year earnings has increased by 6.9% in the past quarter, reflecting stronger analyst sentiment [4] Group 2 - CME Group has gained approximately 19% year-to-date, outperforming the average Finance sector gain of 6.3% [4] - CME Group is part of the Securities and Exchanges industry, which has seen a year-to-date gain of about 16.1%, indicating better performance compared to its industry peers [6] - Another Finance stock, ACNB, has also outperformed the sector with a year-to-date return of 10.5% and a Zacks Rank of 2 (Buy) [5][6]

Financial Performance - Net loss for the three months ended March 31, 2025 was $272 thousand compared to net income of $6.8 million for the same period of 2024, a decrease of $7.0 million [118]. - Noninterest income was $7.2 million for the three months ended March 31, 2025, an increase of $1.5 million from $5.7 million for the same period of 2024 [123]. - Noninterest expenses increased to $29.3 million for the three months ended March 31, 2025, compared to $17.7 million in the same period of 2024 [123]. - The Corporation recognized an income tax benefit of $277 thousand during the three months ended March 31, 2025, compared to a provision for income taxes of $1.8 million in the same period of 2024, attributed to a net loss from the Acquisition [135]. Interest Income and Margin - Net interest income increased to $27.1 million for the three months ended March 31, 2025, up $6.5 million from $20.6 million in the same period of 2024 [118]. - The net interest margin increased to 4.07% for the three months ended March 31, 2025, compared to 3.77% in the same period of 2024, an increase of 30 basis points [118]. - Total interest income increased by $10.3 million during the three months ended March 31, 2025, compared to the same period in 2024, driven by a $6.9 million increase from the average balance of interest-earning assets and a $3.4 million increase from the yield on interest-earning assets [128]. - Total interest expense rose by $3.8 million during the same period, with average interest-bearing deposits increasing by $421.8 million, leading to a cost of interest-bearing deposits of 1.38%, up 73 basis points from the previous year [129]. Loans and Credit Losses - Average loans increased by $499.3 million for the three months ended March 31, 2025, driven by the acquisition of Traditions [123]. - The provision for credit losses was $6.0 million for the three months ended March 31, 2025, compared to $223 thousand for the same period of 2024 [123]. - The allowance for credit losses was $24.6 million at March 31, 2025, up from $17.3 million at December 31, 2024 [123]. - Non-performing loans were $10.0 million, or 0.43% of total loans at March 31, 2025, compared to $6.8 million, or 0.40% at December 31, 2024 [123]. Assets and Deposits - Total assets reached $3.27 billion as of March 31, 2025, up from $2.39 billion at December 31, 2024, with the Acquisition contributing $877.7 million [137]. - Total deposits rose by $747.5 million, or 41.7%, to $2.54 billion as of March 31, 2025, primarily due to the Acquisition [152]. - Time deposits increased by $204.1 million, or 74.8%, with brokered deposits totaling $54.0 million at March 31, 2025 [152]. - Total loans increased to $2.14 billion with a yield of 6.08% for the three months ended March 31, 2025, compared to $1.64 billion and a yield of 5.37% in 2024 [127]. Equity and Capital Ratios - Total stockholders' equity rose to $386.9 million at March 31, 2025, compared to $303.3 million at December 31, 2024, primarily due to the issuance of 2,035,246 shares of common stock for $83.6 million to acquire Traditions [156]. - The Corporation's Tier 1 leverage capital ratio was 11.81% as of March 31, 2025, exceeding the minimum requirement of 4.00% [159]. - Total capital ratio for ACNB Corporation was 15.45% as of March 31, 2025, well above the minimum requirement of 8.00% [159]. - ACNB Corporation's Tier 1 Capital ratio was 13.86% as of March 31, 2025, exceeding the regulatory requirement of 6.00% [159]. Acquisition Impact - The provision for credit losses was $6.0 million for the three months ended March 31, 2025, compared to $223 thousand for the same period in 2024, reflecting the impact of the Acquisition [131]. - Noninterest expenses increased by $11.7 million to $29.3 million for the three months ended March 31, 2025, a 66.1% increase compared to the same period in 2024, largely due to merger-related costs from the Acquisition [134]. - The allowance for credit losses at the Acquisition date was $6.9 million, including $5.5 million for non-PCD loans [132]. - Nonaccrual loans increased by $2.2 million during the three months ended March 31, 2025, primarily due to the acquisition [150]. Liquidity Management - The Corporation's liquidity management includes monitoring projected cash inflows and outflows daily, ensuring sufficient funding sources for all material cash requirements [166]. - ACNB manages liquidity by monitoring projected cash inflows and outflows daily, ensuring sufficient funding sources for all material cash requirements [166]. - The parent company's main source of funding is the dividends received from its subsidiaries, which are subject to federal and state banking regulations [165]. - The Corporation had unfunded outstanding commitments to extend credit of $569.1 million and standby letters of credit of $25.2 million as of March 31, 2025 [167].

Core Viewpoint - ACNB is currently outperforming its peers in the Finance sector, with a year-to-date gain of approximately 6%, compared to the sector's average return of 1.2% [4]. Group 1: Company Performance - ACNB is ranked 1 (Strong Buy) in the Zacks Rank system, indicating strong analyst sentiment and an improving earnings outlook, with a 15.7% increase in the consensus estimate for full-year earnings over the past quarter [3]. - The stock has gained about 6% year-to-date, outperforming the average return of 1.2% for the Finance sector [4]. - ACNB is part of the Banks - Southwest industry, which is ranked 12 in the Zacks Industry Rank, while this industry has seen an average loss of 7.5% so far this year [5]. Group 2: Industry Comparison - The Finance group, which includes ACNB, is currently ranked 2 within the Zacks Sector Rank, which evaluates 16 different groups based on the average Zacks Rank of individual stocks [2]. - Balfour Beatty PLC Sponsored ADR, another Finance stock, has returned 15.3% year-to-date, indicating strong performance within the sector [4]. - The Real Estate - Operations industry, which includes Balfour Beatty, is ranked 89 and has experienced a decline of 4.8% since the beginning of the year [6].

Market Overview - U.S. stocks experienced a rebound due to optimism regarding easing trade tensions between the U.S. and China, following weeks of turmoil that led major indexes into correction territory [1][6] - President Trump announced a 90-day halt on reciprocal tariffs, providing temporary relief to investors, although concerns about the economy's health persist [2][4] - Market volatility is expected to continue as trade talks are still in the early stages and uncertainty remains regarding future tariffs [3][7] Dividend-Paying Stocks - In light of ongoing market uncertainty, investing in dividend-paying stocks is recommended as they tend to provide steady income and stability [3][8] - Three notable companies that have declared dividend increases are: - **Univest Financial Corporation (UVSP)**: Announced a dividend of $0.22 per share with a yield of 2.95% and a payout ratio of 34% [10] - **ACNB Corporation (ACNB)**: Declared a dividend of $0.34 per share with a yield of 3.07% and a payout ratio of 34% [13] - **QUALCOMM Incorporated (QCOM)**: Announced a dividend of $0.89 per share with a yield of 2.42% and a payout ratio of 38% [15]