ACNB (ACNB) Q4 2018 earnings summary

Executive summary

• Record 2018 net income of $21.748m, or $3.09 per share, reflected a full year of combined banking operations after the 2017 New Windsor acquisition and growth in wealth and insurance revenue.

• Year-end assets totaled $1.648bn; loans were $1.302bn and deposits were $1.348bn.

Financial highlights

• Net income was $21.748m, up $11.960m or 122.2% YoY from $9.788m; basic EPS was $3.09 versus $1.50.

• Adjusted 2017 net income would have been $14.498m excluding $3.010m in after-tax acquisition and integration expenses and a $1.700m one-time Tax Cuts and Jobs Act charge.

• Net interest income rose 23.2% to $57.095m from $46.352m; 2018 provision for loan losses was $1.620m.

• Income before taxes was $26.720m versus $16.422m; income tax provision was $4.972m versus $6.634m.

Segment performance

• Commercial lending drove most of the 4.7% increase in loans to $1.302bn; deposits increased 3.8% to $1.348bn, with significant growth in transaction accounts.

• Wealth fiduciary, investment management and brokerage revenue rose 17.5% to $2.364m; trust and investment assets under management were $231.514m and brokerage assets were $109.982m at year-end.

• Insurance commissions increased 10.5% to $5.550m, reflecting commercial and personal lines growth and higher contingent commissions.