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ACNB Corporation Reports 2021 Record Financial Results

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Year-End 2021 Highlights

  • Record net income for the year ended December 31, 2021, totaled $27,834,000, with basic earnings per share of $3.19. This reflects an increase of $9,440,000 or 51.3% over comparable period results for the year ended December 31, 2020, and was primarily a result of higher fee income and lesser loan loss provision in 2021, as well as one-time merger expenses related to the acquisition of Frederick County Bancorp, Inc. (FCBI) in 2020.

  • Net income for the three months ended December 31, 2021, totaled $4,495,000, which is a decrease of $2,554,000 or 36.2% less than comparable period results for the three months ended December 31, 2020. This decrease was largely attributable to the contraction of net interest income due to lower loan volume and rates, one-time expenses related to the core banking system conversion, and lower fee income primarily associated with reduced sales of residential mortgages as interest rates increased in 2021. Basic earnings per share was $0.52 and $0.81 for the three months ended December 31, 2021 and 2020, respectively.

  • Total loans outstanding were $1,468,427,000 at December 31, 2021, as compared to $1,637,784,000 at December 31, 2020, for a decrease of 10.3%. The decrease in loans is largely attributable to the forgiveness of Paycheck Protection Program (PPP) loans, sale of most new residential mortgages, and payoff of loans in the residential mortgage, consumer and government lending portfolios. Conversely, new loan production for all business lines totaled $423,965,000 for the year ended December 31, 2021, which is an increase of 19.4% over comparable period results in 2020.

  • Total deposits were $2,426,389,000 at December 31, 2021, as compared to $2,185,525,000 at December 31, 2020, for an increase of 11.0%. The increase in deposits is primarily a result of continued, slow economic conditions in the ongoing Coronavirus Disease 2019 (COVID-19) environment increasing the level of deposits held by existing and new customers, including the segment of municipal depositors.

  • Quarterly cash dividends paid to ACNB Corporation shareholders in 2021 totaled $8,968,000, or $1.03 per common share, which includes the special cash dividend of $0.02 per common share paid on June 15, 2021. Compared to the $1.00 in cash dividends paid in 2020, this resulted in a year-over-year increase of 3.0% in cash dividends paid per common share to ACNB Corporation shareholders.

  • As of September 30, 2021, the Corporation’s community banking subsidiary, ACNB Bank, no longer had in effect any temporary loan modifications or deferrals due to the COVID-19 pandemic for either commercial or consumer customers, furthering the positive trend of improvement in 2021. Additionally, aggregate PPP loan originations for 2020 and 2021 totaled 2,217 loans in the dollar amount of $223,036,703. As a result of forgiveness and payments, there was an outstanding balance of $18,540,986 in PPP loans at December 31, 2021.

  • On February 23, 2021, ACNB Corporation’s Board of Directors approved a plan authorizing the future repurchase of up to 261,000 shares, or approximately 3.0%, of the Corporation’s outstanding shares of common stock. As of December 31, 2021, 54,071 shares were repurchased under this plan. On September 30, 2021, the Corporation entered into an issuer stock repurchase agreement with an independent third-party broker, in accordance with SEC Rule 10b5-1, to further facilitate this previously-authorized stock repurchase program.

  • On March 30, 2021, ACNB Corporation issued $15,000,000 in subordinated debt for the purpose of using the net proceeds to retire outstanding debt of the Corporation, repurchase issued and outstanding shares of the Corporation, support general corporate purposes, underwrite growth opportunities, create an interest reserve for the notes issued, and downstream proceeds to ACNB Bank, as deemed appropriate, to continue to meet regulatory capital requirements, increase the regulatory lending ability of the Bank, and support the Bank’s organic growth initiatives.