ACNB (ACNB) Q4 2019 earnings summary

Executive summary

• Record 2019 net income rose 9% to $23.721M; basic EPS was $3.36 vs. $3.09 in 2018.

• Jan. 11, 2020 acquisition of Frederick County Bancorp expanded Maryland operations; pro forma assets were $2.2B, deposits $1.8B and loans $1.6B.

Financial highlights

• Net interest income increased 4% to $59.418M; net interest margin held at 3.81% despite three Fed rate cuts totaling 75 bps.

• Other income rose 14% to $18.169M; other expenses increased 7% to $47.621M, including $769K of merger-related expenses.

• Dec. 31, 2019 assets were $1.720B; loans declined 2% to $1.273B and deposits increased 5% to $1.412B YoY.

• Adjusted 2017 net income, excluding $3.010M of acquisition/integration costs and a $1.700M one-time Tax Cuts and Jobs Act charge, was $14.498M vs. reported $9.788M.

Segment performance

• Banking loans declined 2% amid intense competition; deposits grew 5%, concentrated in interest-bearing personal, commercial and municipal accounts.

• Wealth management AUM was $257.025M, up 11%; brokerage AUM was $132.023M, up 20%; combined fiduciary, investment management and brokerage revenue rose 4% to $2.469M.

• Insurance commissions increased 14% to $6.339M, driven mainly by personal and commercial lines and book purchases in late 2018 and 2019.