ACNB (ACNB) Q4 2017 earnings summary

Executive summary

• 2017 net income was $9.788M, or $1.50/share; excluding $3.010M of after-tax acquisition costs and a $1.700M one-time tax charge, net income was $14.498M, or $2.22/share, up 30% YoY.

• The July 1 acquisition of New Windsor Bancorp expanded banking into Carroll County, Maryland; 29 offices served five counties across Pennsylvania and Maryland after system conversions.

Financial highlights

• Net interest income rose 27% to $46.352M in 2017, reflecting six months of combined operations following the acquisition.

• Total assets grew 32% to $1.595B, deposits rose 34% to $1.298B and loans increased 37% to $1.244B at year-end.

• Organic deposit and loan growth, excluding the acquisition, was 4% and 8%, respectively, for the year.

• Net income was $9.788M versus $10.869M in 2016; basic EPS was $1.50 versus $1.80.

Outlook and guidance

• The federal statutory corporate tax rate fell from 35% to 21% effective with tax year 2018, expected to provide an immediate positive net-income effect after the 2017 one-time deferred-tax charge.

• Management said the acquired operations were accretive to earnings and expected to contribute to ongoing financial growth and stability.