ACNB Corporation reported first-quarter 2026 net income of $13.7 million, or $1.32 a diluted share, up from a net loss of $272,000, or 3 cents a share, in the same quarter a year earlier and up from $10.8 million, or $1.04 a share, in the fourth quarter of 2025.
Net interest income rose to $32.5 million, up $5.4 million from the first quarter of 2025, while the fully taxable equivalent net interest margin widened to 4.46% from 4.07% a year earlier and 4.36% in the prior quarter.
Loans ended the quarter at $2.35 billion, up $18.7 million from Dec. 31, 2025 and up $27.0 million from March 31, 2025. On an average basis, loans increased $208.6 million, or 9.8%, from a year earlier. The yield on total loans was 6.35%, up 27 basis points year over year.
Deposits totaled $2.53 billion at March 31, 2026, up $75.6 million from year-end 2025. Noninterest-bearing deposits climbed to $576.1 million, up 4.0% from Dec. 31, 2025 and up $41.6 million, or 8.1%, from a year earlier.
Credit quality improved modestly. Non-performing loans fell to 0.41% of total loans from 0.46% at year-end and 0.43% a year earlier. Net recoveries were flat at 0.00% of average loans, compared with net charge-offs of 0.02% in the fourth quarter and 0.01% in the first quarter of 2025. The allowance for credit losses was $23.6 million, down $57,000 from Dec. 31, 2025 and down $1.0 million from March 31, 2025.
Noninterest income increased to $8.3 million, up $1.1 million from the first quarter of 2025 and $3.9 million from the fourth quarter of 2025. The quarter included a $1.2 million gain from mortgage loans held for sale, up $371,000 year over year, and $737,000 of earnings on bank-owned life insurance, up $157,000 from a year earlier. Insurance commissions rose $246,000 from the prior quarter to $2.1 million.
Noninterest expense fell to $23.6 million from $29.3 million a year earlier, a decline of $5.7 million, and was up $162,000 from the fourth quarter of 2025. Merger-related expenses dropped to zero from $8.0 million in the first quarter of 2025 and $575,000 in the fourth quarter.
Profitability ratios improved as well. Return on average assets was 1.71% and return on average equity was 12.97% in the quarter. Tangible common equity to tangible assets rose to 10.67% from 10.60% at year-end and 9.33% a year earlier.
The company repurchased 73,972 shares during the quarter at a weighted average price of $47.54, leaving 123,099 shares remaining under the current plan. As a result of these announcements, the company's shares have moved 0.53% on the market, and are now trading at a price of $47.45. Check out the company's full 8-K submission here.
