acnb-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number 1-35015

ACNB CORPORATION

(Exact name of Registrant as specified in its charter)


Pennsylvania						23-2233457
(State or other jurisdiction of						(I.R.S. Employer
incorporation or organization)						Identification No.)


16 Lincoln Square, Gettysburg, Pennsylvania						17325
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (717) 334-3161

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $2.50 par value per share

ACNB

The NASDAQ Stock Market, LLC

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted and pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐

No ☒

The number of shares of the Registrant’s Common Stock outstanding on July 30, 2026, was 10,169,930.

Table of Contents

ACNB CORPORATION

Table of Contents


		Page
Glossary		3
Part I – Financial Information
Item 1.	Consolidated Statements of Condition (Unaudited)	4
	Consolidated Statements of Income (Unaudited)	5
	Consolidated Statements of Comprehensive Income (Unaudited)	6
	Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)	7
	Consolidated Statements of Cash Flows (Unaudited)	9
	Notes to Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	51
Item 4.	Controls and Procedures	53
Part II – Other Information
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	54
Item 4.	Mine Safety Disclosures	54
Item 5.	Other Information	54
Item 6.	Exhibits	55
	Signatures	59

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ACNB CORPORATION

Glossary of Defined Acronyms and Terms


2021 Subordinated Notes			4.00% fixed-to-floating rate subordinated notes due March 31, 2031
2026 Subordinated Notes			5.875% fixed-to-floating rate subordinated notes due March 15, 2036
ACL			Allowance for Credit Losses
ACNB Insurance Services			ACNB Insurance Services, Inc.
ACNB, Corporation or Company			ACNB Corporation
Acquisition			Acquisition of Traditions Bancorp, Inc. effective February 1, 2025
AFS			Available for Sale

ALCO			Asset Liability Committee
AOCI			Accumulated other comprehensive income

ASU			Accounting Standard Update
ATM			Automatic Teller Machine
Bank			ACNB Bank
Basel III			Risk-based requirements and rules issued by federal banking agencies
Board			ACNB Corporation Board of Directors
bp or bps			Basis point(s)





CME			Chicago Mercantile Exchange

COVID/COVID-19			Coronavirus Disease 2019
CRA			Community Reinvestment Act of 1977

Discount Window			Federal Reserve Discount Window


ESPP			ACNB Corporation Employee Stock Purchase Plan
ETR			Effective Tax Rate
Exchange Act			Securities Exchange Act of 1934
FASB			Financial Accounting Standards Board


FCBI			Frederick County Bancorp, Inc.
FDIC			Federal Deposit Insurance Corporation

FHLB			Federal Home Loan Bank


FOMC			Federal Open Market Committee
FTE			Fully Taxable Equivalent
GAAP			U.S. Generally Accepted Accounting Principles


HFS			Held for Sale

HTM			Held to Maturity




Market Area			Southcentral Pennsylvania and Northern Maryland

N/A			Not Applicable
N/M			Not Meaningful (percentage changes greater than +/- 150% not considered meaningful)

OBS			Off-Balance Sheet
OCI			Other comprehensive income
PCD			Purchased credit-deteriorated


Purchase Agreements			Subordinated Note Purchase Agreements
Purchasers			Institutional accredited investors and qualified institutional buyers

RPA			Risk Participation Agreement

SEC			Securities and Exchange Commission

SOFR			Secured Overnight Financing Rate

Traditions			Traditions Bancorp, Inc.

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PART I - FINANCIAL INFORMATION

ACNB CORPORATION

ITEM 1 – FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)


(Dollars in thousands, except per share data)	June 30, 2026		December 31, 2025
ASSETS
Cash and due from banks	$	27,995	$	20,611
Interest-bearing deposits with banks	53,840		45,037
Total Cash and Cash Equivalents	81,835		65,648
Equity securities with readily determinable fair values	938		949
Investment securities available for sale, at estimated fair value	466,216		466,894
Investment securities held to maturity, at amortized cost (fair value $56,576, $57,537)	62,620		63,288
Loans held for sale	33,528		28,170
Total loans, net of unearned income	2,398,104		2,330,514
Less: Allowance for credit losses	(24,006)		(23,672)
Loans, net	2,374,098		2,306,842
Premises and equipment, net	27,982		30,648
Right of use asset	3,920		4,155
Restricted investment in bank stocks	14,290		14,237
Investment in bank-owned life insurance	106,423		105,840
Investments in low-income housing partnerships	689		751
Goodwill	64,449		64,449
Intangible assets, net	20,351		22,435
Assets held for sale	2,346		275

Other assets	59,178		53,545
Total Assets	$	3,318,863	$	3,228,126

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing	$	600,711	$	553,855
Interest-bearing	1,934,965		1,896,330
Total Deposits	2,535,676		2,450,185
Short-term borrowings	108,259		64,740
Long-term borrowings	214,884		255,376
Lease liability	4,218		4,451
Allowance for unfunded commitments	1,711		1,831
Other liabilities	30,836		31,569
Total Liabilities	2,895,584		2,808,152

Stockholders’ Equity:
Preferred stock, $2.50 par value, 20,000,000 shares authorized; no shares outstanding at June 30, 2026 and December 31, 2025	—		—
Common stock, $2.50 par value, 40,000,000 and 20,000,000 shares authorized; 11,079,210 and 11,028,152 shares issued; 10,169,930 and 10,372,251 shares outstanding at June 30, 2026 and December 31, 2025, respectively	27,692		27,564
Treasury stock, at cost, 909,280 and 655,901 shares at June 30, 2026 and December 31, 2025, respectively	(35,114)		(22,367)
Additional paid-in capital	181,107		179,658
Retained earnings	272,965		257,293
Accumulated other comprehensive loss	(23,371)		(22,174)
Total Stockholders’ Equity	423,279		419,974
Total Liabilities and Stockholders’ Equity	$	3,318,863	$	3,228,126

The accompanying notes are an integral part of the Consolidated Financial Statements.

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ACNB CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands, except share data)	2026		2025		2026		2025
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	37,883	$	36,555	$	74,185	$	68,231
Tax-exempt	349		317		687		609
Investment Securities:
Taxable	4,343		3,283		8,584		6,185
Tax-exempt	320		283		634		571
Dividends	266		307		600		647
Other	524		831		1,227		1,623
Total Interest and Dividend Income	43,685		41,576		85,917		77,866
INTEREST EXPENSE
Deposits	6,614		7,284		13,001		13,280
Short-term borrowings	552		341		1,115		635
Long-term borrowings	2,517		2,939		5,284		5,849
Total Interest Expense	9,683		10,564		19,400		19,764
Net Interest Income	34,002		31,012		66,517		58,102
Provision for (reversal of) credit losses	554		(228)		478		5,740
Reversal of provision for unfunded commitments	(107)		(354)		(120)		(834)
Net Interest Income after Provision for (Reversal of) Credit Losses and Unfunded Commitments	33,555		31,594		66,159		53,196
NONINTEREST INCOME
Insurance commissions	2,991		2,908		5,119		5,055
Gain from mortgage loans held for sale	1,463		1,575		2,689		2,430
Service charges on deposits	1,243		1,179		2,478		2,273
Wealth management	1,191		1,090		2,351		2,150
ATM debit card charges	933		905		1,839		1,736
Earnings on investment in bank-owned life insurance	756		627		1,493		1,207
Gain on assets held for sale	—		—		177		—
Gain on life insurance proceeds	—		31		174		285
Other	245		342		734		691
Net gains on sales or calls of investment securities	—		22		49		22
Net (losses) gains on equity securities	(4)		3		(11)		17

Total Noninterest Income	8,818		8,682		17,092		15,866
NONINTEREST EXPENSES
Salaries and employee benefits	13,761		13,693		27,788		26,554
Equipment	2,552		2,539		5,152		4,819
Net occupancy	1,209		1,277		2,742		2,719
Intangible assets amortization	1,028		1,141		2,084		1,998
Professional services	736		743		1,414		1,320
Other tax	317		220		894		747
FDIC and regulatory	459		435		901		836


Merger-related	—		1,943		—		9,974

Other	3,063		3,375		5,765		5,734
Total Noninterest Expenses	23,125		25,366		46,740		54,701
Income Before Income Taxes	19,248		14,910		36,511		14,361
Income tax expense	4,034		3,262		7,594		2,985
Net Income	$	15,214	$	11,648	$	28,917	$	11,376
PER SHARE DATA
Basic earnings	$	1.50	$	1.11	$	2.82	$	1.12
Diluted earnings	$	1.49	$	1.11	$	2.81	$	1.12
Weighted average shares basic	10,170,860		10,451,469		10,259,205		10,130,666
Weighted average shares diluted	10,212,225		10,487,519		10,288,802		10,157,331

The accompanying notes are an integral part of the Consolidated Financial Statements.

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ACNB CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
NET INCOME	$	15,214	$	11,648	$	28,917	$	11,376

OTHER COMPREHENSIVE INCOME
INVESTMENT SECURITIES
Unrealized (losses) gains arising during the period, net of income tax (benefit) expense of $(42), $1,220, $(803) and $3,020, respectively	(146)		2,318		(2,797)		8,475
Reclassification adjustment for net AFS investment securities gains included in net income, net of income tax effect of $0, $(5), $(11) and $(5), respectively	—		(17)		(38)		(17)
Total unrealized (loss) gain on AFS investment securities	(146)		2,301		(2,835)		8,458
Amortization of unrealized losses on AFS investment securities transferred to HTM, net of income tax expense of $20, $49, $46 and $105, respectively	71		166		161		359


DERIVATIVE FINANCIAL INSTRUMENTS
Unrealized gains on interest rate derivatives used in cash flow hedges, net of income tax expense of $51, $0, $117 and $0, respectively	180		—		409		—
Reclassification adjustment for net interest rate derivative gain included in net income, net of income tax effect of $(5), $0, $(12) and $0, respectively	(17)		—		(41)		—
Total unrealized gains on interest rate derivatives used in cash flow hedges	163		—		368		—

DEFINED BENEFIT PENSION PLAN

Unrecognized net gain, net of income tax expense of $0, $0, $347 and $0, respectively	—		—		1,109		—


TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	88		2,467		(1,197)		8,817
TOTAL COMPREHENSIVE INCOME	$	15,302	$	14,115	$	27,720	$	20,193

The accompanying notes are an integral part of the Consolidated Financial Statements.

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ACNB CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

Six Months Ended June 30, 2026


	Common Stock			Treasury Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
(Dollars in thousands, except per share data)	Shares	Amount
BALANCE – January 1, 2026	10,372,251	$	27,564	$	(22,367)	$	179,658	$	257,293	$	(22,174)	$	419,974
Net income	—	—		—		—		13,703		—		13,703
Other comprehensive loss, net of taxes	—	—		—		—		—		(1,285)		(1,285)
Common stock shares issued	7,669	19		—		337		—		—		356
Repurchased shares	(73,972)	—		(3,560)		—		—		—		(3,560)
Restricted stock grants, net of forfeitures and withheld for taxes	32,242	81		—		(688)		—		—		(607)
Compensation expense for restricted shares	—	—		—		825		—		—		825
Cash dividends declared ($0.38 per share)	—	—		—		—		(3,930)		—		(3,930)
BALANCE – March 31, 2026	10,338,190	$	27,664	$	(25,927)	$	180,132	$	267,066	$	(23,459)	$	425,476
Net income	—	—		—		—		15,214		—		15,214
Other comprehensive income, net of taxes	—	—		—		—		—		88		88
Common stock shares issued	11,147	28		—		602		—		—		630
Repurchased shares	(179,407)	—		(9,187)		—		—		—		(9,187)

Compensation expense for restricted shares	—	—		—		373		—		—		373
Cash dividends declared ($0.92 per share)	—	—		—		—		(9,315)		—		(9,315)
BALANCE – June 30, 2026	10,169,930	$	27,692	$	(35,114)	$	181,107	$	272,965	$	(23,371)	$	423,279

The accompanying notes are an integral part of the Consolidated Financial Statements.

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ACNB CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

Six Months Ended June 30, 2025


	Common Stock			Treasury Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
(Dollars in thousands, except per share data)	Shares	Amount
BALANCE – January 1, 2025	8,553,785	$	22,357	$	(11,203)	$	99,163	$	234,624	$	(41,668)	$	303,273
Net loss	—	—		—		—		(272)		—		(272)
Other comprehensive income, net of taxes	—	—		—		—		—		6,350		6,350
Issuance of common stock to acquire Traditions	2,035,246	5,088		—		78,561		—		—		83,649
Common stock shares issued	6,470	16		—		251		—		—		267
Repurchased shares	(75,872)	—		(3,106)		—		—		—		(3,106)
Restricted stock grants, net of forfeitures and withheld for taxes	24,042	60		—		(576)		—		—		(516)
Compensation expense for restricted shares	—	—		—		612		—		—		612
Cash dividends declared ($0.32 per share)	—	—		—		—		(3,374)		—		(3,374)
BALANCE – March 31, 2025	10,543,671	27,521		(14,309)		178,011		230,978		(35,318)		386,883
Net income	—	—		—		—		11,648		—		11,648
Other comprehensive income, net of taxes	—	—		—		—		—		2,467		2,467
Common stock shares issued	4,128	11		—		268		—		—		279
Repurchased shares	(71,592)	—		(2,858)		—		—		—		(2,858)
Restricted stock grants, net of forfeitures and withheld for taxes	1,942	7		—		(2)		—		—		5
Compensation expense for restricted shares	—	—		—		276		—		—		276
Cash dividends declared ($0.34 per share)	—	—		—		—		(3,549)		—		(3,549)
BALANCE – June 30, 2025	10,478,149	$	27,539	$	(17,167)	$	178,553	$	239,077	$	(32,851)	$	395,151

The accompanying notes are an integral part of the Consolidated Financial Statements.

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ACNB CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	Six Months Ended June 30,
(In thousands)	2026		2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	28,917	$	11,376
Adjustments to reconcile net income to net cash provided by operating activities:
Gain from mortgage loans held for sale	(2,689)		(2,430)

Earnings on investment in bank-owned life insurance	(1,493)		(1,207)
Net gains on sales or calls of investment securities	(49)		(22)
Net losses (gains) on equity securities	11		(17)
Gain on sales of assets held for sale	(177)		—
Restricted stock compensation expense	1,198		888

Depreciation and amortization	3,254		3,218
Net accretion of purchase accounting adjustments	(3,636)		(3,727)
Provision for credit losses and reversal of unfunded commitments	358		4,906
Net amortization of investment securities premiums	207		707
Amortization of issuance costs on long-term borrowings	24		—
Decrease (increase) in interest receivable	30		(72)
Decrease in interest payable	(190)		(911)
Mortgage loans originated for sale	(111,540)		(81,439)
Proceeds from sales of loans originated for sale	108,871		80,352
Increase in other assets	(1,698)		(6,777)
Deferred income tax	141		5,577
(Decrease) increase in other liabilities	(665)		3,827
Net Cash Provided by Operating Activities	20,874		14,249
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from calls/maturities of investment securities held to maturity	693		335
Proceeds from calls/maturities of investment securities available for sale	23,180		25,976
Proceeds from sales of investment securities available for sale	22,193		98,272

Purchase of investment securities available for sale	(48,320)		(76,934)


Net (purchases) redemption of restricted investment in bank stocks	(53)		643
Net increase in loans	(64,627)		(6,843)


Gain on life insurance proceeds	(174)		(285)

Net cash and cash equivalents received from acquisition	—		36,206

Capital expenditures	(850)		(474)

Proceeds from sales of assets held for sale	452		—
Net Cash (Used in) Provided by Investing Activities	(67,506)		76,896
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in noninterest-bearing deposits	46,856		6,426
Net increase (decrease) in interest-bearing deposits	38,595		(15,899)
Net increase in short-term borrowings	43,519		27,215
Proceeds from long-term borrowings	14,462		—
Repayments on long-term borrowings	(55,000)		(40,188)
Dividends paid	(13,245)		(6,923)
Common stock repurchased	(12,747)		(5,964)
Common stock issued, net of restricted stock forfeitures and withheld for taxes	379		35
Net Cash Provided by (Used in) Financing Activities	62,819		(35,298)
Net Increase in Cash and Cash Equivalents	16,187		55,847
CASH AND CASH EQUIVALENTS — BEGINNING	65,648		47,262
CASH AND CASH EQUIVALENTS — ENDING	$	81,835	$	103,109
Supplemental disclosures of cash flow information
Cash paid for interest	$	19,590	$	19,262
Cash paid for Federal income taxes	7,000		1,100
Cash paid for State income taxes	330		111
Supplemental disclosures of certain noncash activities:
Recognition of operating lease right of use assets	$	279	$	729
Recognition of operating lease liabilities	279		729
Premises and equipment, net transferred to assets held for sale	2,346		—
Loans transferred to foreclosed assets held for resale and other foreclosed transactions	569		—

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ACNB CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - CONTINUED
	Six Months Ended June 30,
(In thousands)	2026		2025
Transactions related to Acquisition:
Net assets acquired	$	—	$	877,557
Liabilities assumed	—		793,908














Common shares issued	—		83,649

The accompanying notes are an integral part of the Consolidated Financial Statements.

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ACNB CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Basis of Presentation

Nature of Operations

ACNB Corporation, headquartered in Gettysburg, Pennsylvania, provides banking, wealth management, mortgage and insurance services to businesses and consumers through its wholly-owned subsidiaries, ACNB Bank and ACNB Insurance Services. The Bank engages in full-service commercial and consumer banking and wealth management services, including trust and retail brokerage, through its 33 community banking offices, including 24 community banking office locations in Adams, Cumberland, Franklin, Lancaster and York Counties, Pennsylvania, and nine community banking office locations in Carroll and Frederick Counties, Maryland. There are two loan production offices located in West Lawn, Pennsylvania and in Hunt Valley, Maryland. ACNB Insurance Services is a full-service insurance agency based in Westminster, Maryland, with an additional location in Gettysburg, Pennsylvania. The agency offers a broad range of property, casualty, health, life and disability insurance to both individual and commercial clients.

Recent Acquisition

Effective February 1, 2025, ACNB closed the acquisition of Traditions Bancorp, Inc., holding company for Traditions Bank, York, Pennsylvania. Traditions was merged with and into a wholly-owned subsidiary of ACNB Corporation immediately followed by the merger of Traditions Bank with and into ACNB Bank. ACNB Bank is operating four of the former Traditions Bank offices as “Traditions Bank, A Division of ACNB Bank”.

Basis of Financial Statements

The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities as of the date of the financial statements as well as revenues and expenses during the period. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary for a fair presentation. All such adjustments are of a normal recurring nature. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025. The Corporation evaluates subsequent events through the filing date of this Form 10-Q with the SEC. The results of operations for the three and six month period ended June 30, 2026, are not necessarily indicative of the results to be expected for the full year.

Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. Reclassifications had no material effect on prior year net income or stockholders’ equity.

Significant Accounting Policies

The significant accounting policies used in preparation of the Consolidated Financial Statements are disclosed in the Corporation’s 2025 Annual Report on Form 10-K. Those significant accounting policies are unchanged at June 30, 2026.

Accounting Standards Pending Adoption

In November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses (Subtopic 220-40)”. This ASU is intended to improve the decision usefulness of expense information on public business entities’ income statements through the disaggregation of relevant expense captions in the notes to the financial statements. The amendments of ASU 2024-03 are effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. The Corporation is currently evaluating the impact of this standard, and believes that its adoption will not have a material impact on the Corporation’s Consolidated Financial Statements.

In November 2025, the FASB issued ASU 2025-08, “Financial Instruments–Credit Losses (Topic 326): Purchased Loans”. The amendments in this ASU expand the population of acquired financial assets subject to the gross-up approach in Topic 326. Financial assets acquired with a “more-than-insignificant” deterioration of credit quality since its origination (PCD assets) and non-PCD assets are accounted for using the “gross up approach” to both populations. The amendments in this ASU are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, and early adoption is permitted. The amendments in this ASU should be applied prospectively to loans that are acquired on or after the initial application date. The Corporation is currently evaluating the impact of this standard, and believes that its adoption will not have a material impact on the Corporation’s Consolidated Financial Statements.

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In November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements”. This ASU was issued to clarify certain aspects of the guidance on hedge accounting and to address several incremental hedge accounting issues arising from the global reference rate reform initiative. The objective of this ASU is to more closely align hedge accounting with the economics of an entity’s risk management activities. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods, and early adoption is permitted. The Corporation is currently evaluating the impact of this standard, and believes that its adoption will not have a material impact on the Corporation’s Consolidated Financial Statements.

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow Scope Improvements”. This ASU was issued to improve the guidance in Topic 270 by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. The amendments add to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The objective of this amendment is to provide clarity on the current interim reporting requirements. The amendments in this ASU are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, and early adoption is permitted. The Corporation is currently evaluating the impact of this standard, and believes that its adoption will not have a material impact on the Corporation’s Consolidated Financial Statements.

Note 2 – Earnings Per Share

The Corporation has a simple capital structure. Basic earnings per share of common stock is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding less unvested restricted stock at the end of the period. Diluted earnings per share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Weighted average shares outstanding (basic)	10,170,860		10,451,469		10,259,205		10,130,666
Dilutive effect of unvested shares	41,365		36,050		29,597		26,665
Weighted average shares outstanding (diluted)	10,212,225		10,487,519		10,288,802		10,157,331
Per share:
Basic	$	1.50	$	1.11	$	2.82	$	1.12
Diluted	1.49		1.11		2.81		1.12

There were no antidilutive instruments at June 30, 2026 and 2025.

Share Repurchase Plans

On April 29, 2026, the Corporation announced that the Board of Directors approved a plan to repurchase, in open market transactions at prevailing market prices, up to 310,000 shares, or approximately 3%, of the outstanding shares of ACNB’s common stock. This common stock repurchase program replaced and superseded any and all earlier announced repurchase plans. During the three months ended June 30, 2026, the Corporation repurchased 56,308 shares under this plan.

On June 18, 2025, the Corporation announced that the Board of Directors approved a plan to repurchase, in open market transactions at prevailing market prices, up to 314,000 shares, or approximately 3%, of the outstanding shares of ACNB’s common stock. There were 116,929 shares purchased under this plan through December 31, 2025. During the three and six months ended June 30, 2026 the Corporation repurchased 123,099 and 197,071 shares, respectively, which completed this plan.

Employee Stock Purchase Plan

On May 5, 2026, shareholders approved the ACNB Corporation Employee Stock Purchase Plan effective July 1, 2026. The ESPP provides employees of ACNB the opportunity to acquire an ownership interest in the Corporation through a regular investment program to purchase its common stock. A total of 300,000 shares of the Corporation’s common stock are reserved for issuance under the ESPP.

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Note 3 – Investment Securities

Fair value of equity securities with readily determinable fair values at June 30, 2026 and December 31, 2025 are as follows:


(In thousands)	Fair Value at Beginning of Period		(Losses) Gains		Fair Value at End of Period
Six Months Ended June 30, 2026
CRA Mutual Fund	$	949	$	(11)	$	938




Twelve Months Ended December 31, 2025
CRA Mutual Fund	$	919	$	30	$	949

Amortized cost and fair value of investment securities were as follows:


(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2026
Available for Sale
U.S. Government and agencies	$	59,375	$	—	$	6,276	$	53,099
Collateralized mortgage obligations	95,325		64		3,370		92,019
Residential mortgage-backed securities	179,499		140		13,780		165,859
Commercial mortgage-backed securities	120,747		278		4,277		116,748
State and municipal	10,599		8		85		10,522
Corporate bonds	28,547		88		666		27,969
Total	$	494,092	$	578	$	28,454	$	466,216

Held to Maturity

State and municipal	$	61,825	$	—	$	6,022	$	55,803
Residential mortgage-backed securities	795		—		22		773
Total	$	62,620	$	—	$	6,044	$	56,576

December 31, 2025
Available for Sale
U.S. Government and agencies	$	65,570	$	—	$	6,218	$	59,352
Collateralized mortgage obligations	75,982		243		2,195		74,030
Residential mortgage-backed securities	186,203		426		12,941		173,688
Commercial mortgage-backed securities	124,996		957		3,744		122,209
State and municipal	8,499		—		49		8,450
Corporate bonds	29,871		334		1,040		29,165
Total	$	491,121	$	1,960	$	26,187	$	466,894

Held to Maturity

State and municipal	$	62,200	$	—	$	5,726	$	56,474
Residential mortgage-backed securities	1,088		—		25		1,063
Total	$	63,288	$	—	$	5,751	$	57,537

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The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:


	Less than 12 Months				12 Months or More				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2026
Available for Sale
U.S. Government and agencies	$	—	$	—	$	53,099	$	6,276	$	53,099	$	6,276
Collateralized mortgage obligations	53,258		983		29,533		2,387		82,791		3,370
Residential mortgage-backed securities	33,324		502		116,044		13,278		149,368		13,780
Commercial mortgage-backed securities	49,365		590		24,393		3,687		73,758		4,277
State and municipal	8,356		85		—		—		8,356		85
Corporate bonds	2,896		43		7,683		623		10,579		666
Total	$	147,199	$	2,203	$	230,752	$	26,251	$	377,951	$	28,454

Held to Maturity
State and municipal	$	4,290	$	113	$	50,163	$	5,909	$	54,453	$	6,022
Residential mortgage-backed securities	—		—		773		22		773		22
Total	$	4,290	$	113	$	50,936	$	5,931	$	55,226	$	6,044

December 31, 2025
Available for Sale
U.S. Government and agencies	$	—	$	—	$	59,352	$	6,218	$	59,352	$	6,218
Collateralized mortgage obligations	17,854		46		32,189		2,149		50,043		2,195
Residential mortgage-backed securities	30,048		115		125,171		12,826		155,219		12,941
Commercial mortgage-backed securities	33,179		51		26,210		3,693		59,389		3,744
State and municipal	8,450		49		—		—		8,450		49
Corporate bonds	—		—		11,060		1,040		11,060		1,040
Total	$	89,531	$	261	$	253,982	$	25,926	$	343,513	$	26,187

Held to Maturity

State and municipal	$	—	$	—	$	56,474	$	5,726	$	56,474	$	5,726
Residential mortgage-backed securities	—		—		1,063		25		1,063		25
Total	$	—	$	—	$	57,537	$	5,751	$	57,537	$	5,751

All mortgage-backed securities, and those of a similar asset class, are government-sponsored enterprise pass-through instruments issued by the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation or they are issued by the Government National Mortgage Association which is backed by the U.S. government which guarantees the timely payment of principal on these investments.

The Company evaluates AFS debt securities for impairment at each measurement date to determine whether the decline in the fair value below the amortized cost basis is due to credit-related factors or noncredit-related factors. In estimating credit events, management considers whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before anticipated recovery or if it does not expect to recover the entire amortized cost basis. There was no impairment on AFS debt securities as of June 30, 2026 and December 31, 2025. The Company evaluates HTM debt securities for expected credit losses at each measurement date to determine the ACL. The Corporation’s ACL on its HTM investment securities was de minimis as of June 30, 2026 and December 31, 2025.

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The Company monitors the credit quality of HTM debt securities through the use of credit analysis on a quarterly basis. The credit quality indicators were updated as of June 30, 2026. The following table shows the amortized cost of HTM debt securities as of June 30, 2026 and December 31, 2025, aggregated by credit quality indicator:


(In thousands)	A+ Rated or Higher		Not Rated
June 30, 2026
State and political subdivisions	$	61,825	$	—
Residential mortgage-backed securities	—		795
Total	$	61,825	$	795

December 31, 2025
State and political subdivisions	$	62,200	$	—
Residential mortgage-backed securities	—		1,088
Total	$	62,200	$	1,088

Amortized cost and fair value at June 30, 2026, by contractual maturity, where applicable, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay with or without penalties. Securities not due at a single maturity date are shown separately below.


	Available for Sale				Held to Maturity
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
1 year or less	$	4,061	$	3,979	$	—	$	—
Over 1 year through 5 years	59,962		55,596		6,587		6,140
Over 5 years through 10 years	23,899		21,493		37,698		35,208
Over 10 years	10,599		10,522		17,540		14,455
Mortgage-backed securities	395,571		374,626		795		773
Total	$	494,092	$	466,216	$	62,620	$	56,576

The proceeds from sales and calls of investment securities and the associated gains and losses are listed below:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Proceeds from sales	$	—	$	389	$	22,193	$	98,272
Proceeds from calls	12,959		11,822		23,180		12,322
Gross gains	—		56		187		56
Gross losses	—		34		138		34

During the six months ended June 30, 2025, ACNB received $97.7 million in proceeds from the sale of Traditions’ investments subsequent to the Acquisition date.

At June 30, 2026 and December 31, 2025, securities with a carrying value of $158.4 million and $159.6 million, respectively, were pledged as collateral as required by law on public and trust deposits, repurchase agreements and for other purposes.

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Note 4 – Loans and Allowance for Credit Losses

The following table presents the composition of the loan portfolio:


(In thousands)	June 30, 2026		December 31, 2025
Commercial real estate	$	1,333,050	$	1,273,813
Residential mortgage	602,738		599,051
Commercial and industrial	217,151		205,452
Home equity lines of credit	122,164		127,341
Real estate construction	115,091		116,680
Consumer	10,105		10,140
Gross loans	2,400,299		2,332,477
Unearned income	(2,195)		(1,963)
Total loans, net of unearned income	$	2,398,104	$	2,330,514

One of the factors used to monitor the performance and credit quality of the loan portfolio is to analyze the age of the loans receivable as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status:


(In thousands)	30–59 Days Past Due		60–89 Days Past Due		≥ 90 Days Past Due		Total Past Due		Current		Total Loans Receivable		Loans Receivable ≥ 90 Days and Accruing
June 30, 2026
Commercial real estate	$	506	$	216	$	63	$	785	$	1,332,265	$	1,333,050	$	—
Residential mortgage	20		1,590		4,104		5,714		597,024		602,738		2,613
Commercial and industrial	86		14		—		100		217,051		217,151		—
Home equity lines of credit	604		321		565		1,490		120,674		122,164		565
Real estate construction	—		12		—		12		115,079		115,091		—
Consumer	38		4		7		49		10,056		10,105		7
Gross loans	$	1,254	$	2,157	$	4,739	$	8,150	$	2,392,149	$	2,400,299	$	3,185

December 31, 2025
Commercial real estate	$	457	$	400	$	292	$	1,149	$	1,272,664	$	1,273,813	$	—
Residential mortgage	4,988		2,098		4,261		11,347		587,704		599,051		2,332
Commercial and industrial	10		332		142		484		204,968		205,452		—
Home equity lines of credit	572		—		514		1,086		126,255		127,341		514
Real estate construction	578		—		—		578		116,102		116,680		—
Consumer	23		30		8		61		10,079		10,140		8
Gross loans	$	6,628	$	2,860	$	5,217	$	14,705	$	2,317,772	$	2,332,477	$	2,854

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Nonaccrual and Nonperforming Loans

Loans individually evaluated consist of nonaccrual loans, presented in the following table:


	June 30, 2026						December 31, 2025
(In thousands)	With a Related Allowance		Without a Related Allowance		Total		With a Related Allowance		Without a Related Allowance		Total
Commercial real estate	$	—	$	2,749	$	2,749	$	—	$	3,644	$	3,644
Residential mortgage	233		1,599		1,832		246		1,684		1,930
Commercial and industrial	178		1,871		2,049		698		1,590		2,288
Home equity lines of credit	—		4		4		—		5		5

Total	$	411	$	6,223	$	6,634	$	944	$	6,923	$	7,867

During the six months ended June 30, 2026, no material amount of interest income was recognized on nonaccrual loans subsequent to their classification as nonaccrual.

Total nonperforming loans are as follows:


(In thousands)	June 30, 2026		December 31, 2025
Nonaccrual loans	$	6,634	$	7,867
Greater than or equal to 90 days past due and accruing1	3,185		2,854
Total nonperforming loans	$	9,819	$	10,721

__________________________________________________________________

1 Nonperforming loans include consumer residential mortgages and home equity lines of credit which are well secured by residential real estate properties, all of which are in the process of collection and are not considered nonaccrual.

Collateral-Dependent Loans

A loan is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. If the estimated value of the loan is less than the amortized cost basis, the loan is written down through the ACL as a credit loss. Substantially all of the collateral supporting collateral-dependent loans consists of various types of real estate, including residential properties, commercial properties such as retail centers, office buildings and lodging, agriculture land and vacant land. Changes in the fair value of the collateral for individually evaluated loans are reported as a component of the provision for credit losses in the period of change.

The following table presents the amortized cost basis of individually evaluated loans by type of collateral as of the periods presented:


	June 30, 2026				December 31, 2025
(In thousands)	Business Assets		Real Estate		Business Assets		Real Estate
Commercial real estate	$	—	$	2,749	$	—	$	3,644
Residential mortgage	—		1,832		—		1,930
Commercial and industrial	1,770		279		1,971		317
Home equity lines of credit	—		4		—		5


Total	$	1,770	$	4,864	$	1,971	$	5,896

Loan Modifications

The Corporation evaluates all loan restructurings to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions or combinations of the above. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

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There were no loans modified during the three months ended June 30, 2026 and 2025 and the six months ended June 30, 2025.

The following table presents the amortized cost basis of loans that were experiencing financial difficulty and modified during the six months ended June 30, 2026, by class, type of modification and financial effect. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

(Dollars in thousands)

Term Extension

Percent of Class of Financing Receivable

Financial Effect

Six Months Ended June 30, 2026

Commercial and industrial

136

0.1

Extended the term of the loan 12 months.

The following presents the performance of loans modified in the previous twelve months as of June 30, 2026:


(In thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due		Total Past Due
Residential mortgage	$	340	$	—	$	—	$	92	$	92

Commercial and industrial	136		—		—		—		—

Total	$	476	$	—	$	—	$	92	$	92

The following presents the performance of loans modified in the previous twelve months as of June 30, 2025:


(In thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due		Total Past Due

Commercial real estate	$	2,275	$	—	$	—	$	—	$	—
Commercial and industrial	1,728		—		—		—		—

Total	$	4,003	$	—	$	—	$	—	$	—

As of June 30, 2026, the Corporation had no commitments to lend any additional funds on modified loans. During the six months ended June 30, 2026, one residential mortgage loan in the amount of $92 thousand defaulted on the modified terms of the agreement by failure to make the monthly payments after the deferment period ended. During the three and six months ended June 30, 2025, there were no loans modified due to financial difficulty that defaulted subsequent to the modification. For purposes of this disclosure, a default occurs when, within 12 months of the original modification, either a full or partial charge-off occurs or the loan becomes 90 days or more past due.

Allowance for Credit Losses

The Corporation maintains an ACL at a level determined to be adequate by management to absorb expected credit losses associated with the Corporation’s financial instruments over the life of those instruments as of the balance sheet date. The ACL consists of loans evaluated collectively and individually for expected credit losses. The Corporation considers the performance of the loan portfolio and its impact on the ACL and does not assign internal risk ratings to smaller balance, homogeneous loans such as certain residential mortgage, home equity lines of credit, construction loans to individuals secured by residential real estate and consumer loans. For these loans, the Corporation evaluates credit quality based on the aging status of the loan and designates as performing and nonperforming.

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The following summarizes designated internal risk categories by portfolio segment for loans assigned a risk rating and those evaluated based on the performance status:


	June 30, 2026
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis
(In thousands)	2026		2025		2024		2023		2022		Prior				Total
Internally Risk Rated:
Commercial real estate
Pass	$	107,781	$	81,079	$	166,024	$	175,309	$	189,826	$	516,415	$	35,491	$	1,271,925
Special Mention	7,238		3,114		2,250		2,121		3,007		35,732		1,153		54,615
Substandard	—		151		—		—		2,163		4,196		—		6,510
Total Commercial real estate	$	115,019	$	84,344	$	168,274	$	177,430	$	194,996	$	556,343	$	36,644	$	1,333,050
Year-to-date gross charge-offs	$	—	$	—	$	—	$	32	$	88	$	—	$	—	$	120
Residential mortgage
Pass	$	16,740	$	37,111	$	29,584	$	30,929	$	21,718	$	84,018	$	1,437	$	221,537
Special Mention	341		78		240		3,455		82		2,669		—		6,865
Substandard	—		—		—		228		1,725		262		—		2,215
Total Residential mortgage	$	17,081	$	37,189	$	29,824	$	34,612	$	23,525	$	86,949	$	1,437	$	230,617

Commercial and industrial
Pass	$	26,924	$	17,881	$	21,597	$	14,439	$	18,094	$	50,252	$	47,054	$	196,241
Special Mention	464		264		65		394		4,382		1,490		10,871		17,930
Substandard	—		—		—		413		725		498		1,344		2,980
Total Commercial and industrial	$	27,388	$	18,145	$	21,662	$	15,246	$	23,201	$	52,240	$	59,269	$	217,151

Home equity lines of credit
Pass	$	—	$	—	$	—	$	479	$	80	$	169	$	9,432	$	10,160
Special Mention	—		—		—		—		—		93		237		330
Substandard	—		—		—		—		—		5		4		9
Total Home equity lines of credit	$	—	$	—	$	—	$	479	$	80	$	267	$	9,673	$	10,499

Real estate construction
Pass	$	10,826	$	22,815	$	12,417	$	10,977	$	6,738	$	2,638	$	10,126	$	76,537
Special Mention	—		—		—		—		4,358		—		—		4,358

Total Real estate construction	$	10,826	$	22,815	$	12,417	$	10,977	$	11,096	$	2,638	$	10,126	$	80,895

Performance Rated:
Residential mortgage
Performing	$	18,035	$	45,991	$	30,474	$	49,442	$	73,250	$	147,726	$	4,590	$	369,508
Nonperforming	—		—		146		—		820		1,647		—		2,613
Total Residential mortgage	$	18,035	$	45,991	$	30,620	$	49,442	$	74,070	$	149,373	$	4,590	$	372,121
Home equity lines of credit
Performing	$	—	$	—	$	—	$	11	$	27	$	1,742	$	109,320	$	111,100
Nonperforming	—		—		—		—		—		—		565		565
Total Home equity lines of credit	$	—	$	—	$	—	$	11	$	27	$	1,742	$	109,885	$	111,665
Real estate construction
Performing	$	17,619	$	14,832	$	497	$	161	$	351	$	735	$	1	$	34,196

Total Real estate construction	$	17,619	$	14,832	$	497	$	161	$	351	$	735	$	1	$	34,196
Consumer
Performing	$	1,582	$	1,467	$	997	$	610	$	860	$	669	$	3,913	$	10,098
Nonperforming	—		—		—		—		3		4		—		7
Total Consumer	$	1,582	$	1,467	$	997	$	610	$	863	$	673	$	3,913	$	10,105
Year-to-date gross charge-offs	$	—	$	—	$	8	$	5	$	—	$	7	$	134	$	154
Total Portfolio loans:
Pass	$	162,271	$	158,886	$	229,622	$	232,133	$	236,456	$	653,492	$	103,540	$	1,776,400
Special Mention	8,043		3,456		2,555		5,970		11,829		39,984		12,261		84,098
Substandard	—		151		—		641		4,613		4,961		1,348		11,714
Performing	37,236		62,290		31,968		50,224		74,488		150,872		117,824		524,902
Nonperforming	—		—		146		—		823		1,651		565		3,185
Total Portfolio loans	$	207,550	$	224,783	$	264,291	$	288,968	$	328,209	$	850,960	$	235,538	$	2,400,299
Year-to-date gross charge-offs	$	—	$	—	$	8	$	37	$	88	$	7	$	134	$	274

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	December 31, 2025
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis
(In thousands)	2025		2024		2023		2022		2021		Prior				Total
Internally Risk Rated:
Commercial real estate
Pass	$	83,583	$	171,026	$	182,864	$	199,094	$	166,194	$	392,397	$	25,109	$	1,220,267
Special Mention	420		1,807		2,386		4,485		9,367		25,923		1,615		46,003
Substandard	153		105		294		2,492		327		4,172		—		7,543
Total Commercial real estate	$	84,156	$	172,938	$	185,544	$	206,071	$	175,888	$	422,492	$	26,724	$	1,273,813
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	32	$	—	$	32
Residential mortgage
Pass	$	37,231	$	29,754	$	34,884	$	23,227	$	37,692	$	54,050	$	953	$	217,791
Special Mention	176		247		140		304		140		2,789		—		3,796
Substandard	—		—		231		1,816		—		271		—		2,318
Total Residential mortgage	$	37,407	$	30,001	$	35,255	$	25,347	$	37,832	$	57,110	$	953	$	223,905
Year-to-date gross charge-offs	$	19	$	—	$	—	$	—	$	—	$	—	$	—	$	19
Commercial and industrial
Pass	$	20,925	$	22,881	$	16,950	$	20,101	$	30,917	$	30,588	$	46,211	$	188,573
Special Mention	383		208		478		4,888		40		483		7,100		13,580
Substandard	—		—		463		774		94		513		1,455		3,299
Total Commercial and industrial	$	21,308	$	23,089	$	17,891	$	25,763	$	31,051	$	31,584	$	54,766	$	205,452
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	14
Home equity lines of credit
Pass	$	—	$	—	$	485	$	84	$	29	$	51	$	10,974	$	11,623
Special Mention	—		—		—		—		93		97		160		350
Substandard	—		—		—		—		—		5		5		10
Total Home equity lines of credit	$	—	$	—	$	485	$	84	$	122	$	153	$	11,139	$	11,983

Real estate construction
Pass	$	26,653	$	19,215	$	15,519	$	7,513	$	1,640	$	757	$	5,867	$	77,164
Special Mention	—		—		—		4,678		—		365		—		5,043

Total Real estate construction	$	26,653	$	19,215	$	15,519	$	12,191	$	1,640	$	1,122	$	5,867	$	82,207

Performance Rated:
Residential mortgage
Performing	$	40,566	$	33,541	$	53,484	$	79,888	$	39,877	$	120,302	$	5,157	$	372,815
Nonperforming	—		231		—		635		—		1,465		—		2,331
Total Residential mortgage	$	40,566	$	33,772	$	53,484	$	80,523	$	39,877	$	121,767	$	5,157	$	375,146
Home equity lines of credit
Performing	$	—	$	—	$	13	$	29	$	—	$	1,989	$	112,813	$	114,844
Nonperforming	—		—		—		—		—		—		514		514
Total Home equity lines of credit	$	—	$	—	$	13	$	29	$	—	$	1,989	$	113,327	$	115,358
Real estate construction
Performing	$	27,937	$	4,650	$	553	$	362	$	144	$	826	$	1	$	34,473

Total Real estate construction	$	27,937	$	4,650	$	553	$	362	$	144	$	826	$	1	$	34,473
Consumer
Performing	$	1,641	$	1,232	$	877	$	1,125	$	260	$	587	$	4,410	$	10,132
Nonperforming	—		—		—		—		—		8		—		8
Total Consumer	$	1,641	$	1,232	$	877	$	1,125	$	260	$	595	$	4,410	$	10,140
Year-to-date gross charge-offs	$	14	$	27	$	61	$	18	$	—	$	8	$	230	$	358
Total Portfolio loans
Pass	$	168,392	$	242,876	$	250,702	$	250,019	$	236,472	$	477,843	$	89,114	$	1,715,418
Special Mention	979		2,262		3,004		14,355		9,640		29,657		8,875		68,772
Substandard	153		105		988		5,082		421		4,961		1,460		13,170
Performing	70,144		39,423		54,927		81,404		40,281		123,704		122,381		532,264
Nonperforming	—		231		—		635		—		1,473		514		2,853
Total Portfolio loans	$	239,668	$	284,897	$	309,621	$	351,495	$	286,814	$	637,638	$	222,344	$	2,332,477
Year-to-date gross charge-offs	$	33	$	27	$	61	$	18	$	—	$	54	$	230	$	423

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The following table presents the activity in the ACL by loan portfolio segment:


(In thousands)	Commercial Real Estate		Residential Mortgage		Commercial and Industrial		Home Equity Lines of Credit		Real Estate Construction		Consumer		Total
Three Months Ended June 30, 2026
Beginning balance - April 1, 2026	$	13,705	$	5,578	$	1,648	$	552	$	1,985	$	147	$	23,615

Charge-offs	(120)		—		—		—		—		(72)		(192)
Recoveries	—		—		2		—		—		27		29
Provisions (reversal of)	259		(8)		253		10		(4)		44		554
Ending balance - June 30, 2026	$	13,844	$	5,570	$	1,903	$	562	$	1,981	$	146	$	24,006
Six Months Ended June 30, 2026
Beginning balance - January 1, 2026	$	13,259	$	5,386	$	1,800	$	482	$	2,588	$	157	$	23,672

Charge-offs	(120)		—		—		—		—		(154)		(274)
Recoveries	—		4		71		—		—		55		130
Provisions (reversal of)	705		180		32		80		(607)		88		478
Ending balance - June 30, 2026	$	13,844	$	5,570	$	1,903	$	562	$	1,981	$	146	$	24,006

Three Months Ended June 30, 2025
Beginning balance - April 1, 2025	$	13,549	$	5,128	$	2,228	$	487	$	3,138	$	116	$	24,646
Charge-offs	—		—		—		—		—		(86)		(86)
Recoveries	—		—		7		—		—		14		21
(Reversal of) provisions	(512)		76		2		(37)		118		125		(228)
Ending balance - June 30, 2025	$	13,037	$	5,204	$	2,237	$	450	$	3,256	$	169	$	24,353
Six Months Ended June 30, 2025
Beginning balance - January 1, 2025	$	10,578	$	2,976	$	1,416	$	294	$	1,918	$	98	$	17,280
Allowance established for acquired PCD loans	798		140		194		13		169		150		1,464
Charge-offs	—		—		(14)		—		—		(157)		(171)
Recoveries	—		—		10		—		—		30		40
Provisions	1,661		2,088		631		143		1,169		48		5,740
Ending balance - June 30, 2025	$	13,037	$	5,204	$	2,237	$	450	$	3,256	$	169	$	24,353

Note 5 – Deposits

Deposits were comprised of the following as of the periods presented:


(In thousands)	June 30, 2026		December 31, 2025
Noninterest-bearing demand deposits	$	600,711	$	553,855
Interest-bearing demand deposits	636,551		623,620
Money market	481,015		485,808
Savings	336,504		333,973
Total demand and savings	2,054,781		1,997,256
Time	480,895		452,929
Total deposits	$	2,535,676	$	2,450,185

Time deposits include brokered deposits totaling $75.0 million at June 30, 2026 and $59.1 million at December 31, 2025.

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Scheduled maturities of time deposits at June 30, 2026 are as follows:


	Time Deposits
(In thousands)	Less than $250,000		$250,000 or more
Less than 1 year	$	360,089	$	79,009
1 - 2 years	24,203		6,107
2 - 3 years	4,744		1,602
3 - 4 years	3,178		—
4 - 5 years	1,963		—
Thereafter	—		—
Total time deposits	$	394,177	$	86,718

Note 6 – Borrowings

Short-term borrowings and weighted-average interest rates for the periods presented:


	June 30, 2026				December 31, 2025
(Dollars in thousands)	Amount		Rate		Amount		Rate

Securities sold under repurchase agreements	$	13,888	0.12	%	16,129		0.27	%
FHLB advances	90,000		3.90		45,000		4.08
Federal funds purchased	4,371		3.63		3,611		3.64
Total	$	108,259	3.40	%	$	64,740	3.11	%

Borrowings with original maturities of one year or less are classified as short-term. Securities sold under repurchase agreements are comprised of customer repurchase agreements, which are sweep accounts with next-day maturities utilized by larger commercial customers to earn interest on their funds. Securities are pledged to these customers in an amount at least equal to the outstanding balance. Under an agreement with the FHLB, the Bank has short-term borrowing capacity included within its maximum borrowing capacity. All FHLB advances are collateralized by a security agreement covering qualifying loans. In addition, all FHLB advances are secured by the FHLB capital stock owned by the Bank having a par value of $14.0 million at June 30, 2026.

Long-term borrowings and their weighted-average contractual rates were comprised of the following for the periods presented:


	June 30, 2026				December 31, 2025
(Dollars in thousands)	Amount		Rate		Amount		Rate
FHLB fixed-rate advances maturing:
2026	$	40,000	4.40	%	$	80,000	4.71	%
2027	90,000		4.55		90,000		4.55
2028	35,000		4.23		35,000		4.23
2029	30,000		4.25		30,000		4.25
Trust preferred subordinated debt 1	5,398		5.62		5,376		6.15
Subordinated debt 2	14,486		5.88		15,000		4.00
Total	$	214,884	4.56	%	$	255,376	4.52	%

__________________________________________________________________

1 Net of purchase accounting fair value mark.

2 Net of unamortized issuance costs.

The long-term FHLB advances have a weighted average rate of 4.42% and are collateralized by the assets defined in the security agreement and FHLB capital stock described previously. Based on this collateral and ACNB’s holding of FHLB stock, ACNB is eligible to borrow up to $1.30 billion, of which $1.01 billion was available at June 30, 2026.

The trust preferred subordinated debt is comprised of debt securities issued by FCBI in December 2006 and assumed by ACNB Corporation through the acquisition of FCBI. FCBI completed the private placement of an aggregate of $6.0 million of trust preferred securities. The interest rate on the subordinated debentures is adjusted quarterly to 163 bps over the three-month CME Term SOFR plus applicable tenor spread adjustment. On June 11, 2026, the most recent interest rate reset date, the interest rate

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was adjusted to 5.56% through the period ending September 14, 2026. The trust preferred securities mature on December 15, 2036, and may be redeemed at par, at the Corporation’s option, on any interest payment date. The trust preferred subordinated debt is considered Tier 1 capital for the consolidated capital ratios.

On March 12, 2026, the Company entered into subordinated note purchase agreements with the Purchasers pursuant to which the Company sold and issued $15.0 million in aggregate principal amount of its 5.875% fixed-to-floating rate subordinated notes due March 15, 2036. The 2026 Subordinated Notes bear interest at a fixed rate, for the period up to, but excluding March 15, 2031. From and including March 15, 2031 until maturity or redemption, the interest rate will adjust to a floating rate equal to a benchmark rate, which is expected to be the then-current Three-Month Term SOFR, plus 245 bps. The Company will pay interest in arrears semi-annually during the fixed interest rate period and quarterly during the floating interest rate period. The 2026 Subordinated Notes constitute unsecured and subordinated obligations of the Company and rank junior in right of payment to any senior indebtedness and obligations to general and secured creditors. Subject to limited exceptions, the Company cannot redeem the 2026 Subordinated Notes before March 15, 2031. The 2026 Subordinated Notes were issued by the Corporation to the Purchasers at a price equal to 100% of their face amount. The issuance costs for the 2026 Subordinated Notes were $537 thousand and are reported net on the Consolidated Statements of Condition. The 2026 Subordinated Notes have a stated maturity of March 15, 2036, are redeemable by the Company at its option, in whole or in part, on or after March 15, 2031, and at any time upon the occurrences of certain events. The 2026 Subordinated Notes are considered Tier 2 capital for the consolidated capital ratios.

On March 30, 2021, the Company entered into subordinated note purchase agreements with the Purchasers pursuant to which the Company sold and issued $15.0 million in aggregate principal amount of its 4.00% fixed-to-floating rate subordinated notes due March 31, 2031. The Company redeemed on March 31, 2026 all of the Company’s outstanding 4.00% fixed-to-floating rate 2021 Subordinated Notes due March 31, 2031, having an aggregate principal amount of $15.0 million in accordance with the terms of the 2021 Subordinated Notes. The total redemption price was 100% of the aggregate principal amount of the 2021 Subordinated Notes, plus interest accrued and unpaid to March 31, 2026.

Note 7 – Derivative Financial Instruments

ACNB is exposed to certain risks arising from both its business operations and economic conditions. ACNB manages market risk, including interest rate risk, primarily by managing the amount, sources and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage interest rate risk that arise from business operations.

All derivatives are recognized as either assets or liabilities in the Consolidated Statements of Condition. Until a derivative is settled, favorable changes in fair values result in unrealized gains that are recognized as assets, while unfavorable changes result in unrealized losses that are recognized as liabilities.

The Company may enter into a risk participation agreement with another institution as a means to assume a portion of the credit risk associated with a loan structure which includes a derivative instrument, in exchange for fee income commensurate with the risk assumed. This type of derivative is referred to as sold credit protection. In addition, in an effort to reduce the credit risk associated with an interest rate swap agreement with a borrower for whom the Company has provided a loan structured with a derivative, the Company may purchase an RPA from an institution participating in the facility in exchange for a fee commensurate with the risk shared. This type of derivative is referred to as purchased credit protection.

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The following table presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the Consolidated Statements of Condition:


	June 30, 2026				Consolidated Statements of Condition Location	December 31, 2025
(In thousands)	Notional Amount		Asset (Liability) Fair Value			Notional Amount		Asset (Liability) Fair Value
Derivatives not designated as hedging instruments:
Interest rate lock commitments:
Assets	$	61,018	$	1,687	Other Assets	$	58,114	$	1,540
Liabilities	—		—		Other Liabilities	—		—

Forward commitments:
Assets	10,949		3		Other Assets	8,223		4
Liabilities	21,750		(74)		Other Liabilities	23,881		(105)

Interest rate derivatives with customers:
Assets	—		—		Other Assets	5,917		91
Liabilities	54,630		(3,880)		Other Liabilities	49,849		(3,476)

Interest rate derivatives with dealer counterparties:
Assets	54,630		3,880		Other Assets	49,849		3,476
Liabilities	—		—		Other Liabilities	5,917		(91)

Risk participations:
Sold credit protection	7,000		(65)		Other Liabilities	—		—

Derivatives designated as hedging instruments:
Interest rate derivatives used in cash flow hedges:
Assets	45,000		407		Other Assets	20,000		48
Liabilities	45,000		(60)		Other Liabilities	25,000		(144)

The following table presents a summary of the fair value gains and losses on derivative financial instruments for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,				Consolidated Statements of Income Classification
(In thousands)	2026		2025		2026		2025
Interest rate lock commitments	$	30	$	283	$	147	$	543	Gain from mortgage loans HFS
Forward commitments	(218)		(74)		31		(89)		Gain from mortgage loans HFS

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The following table presents the effect of fair value and cash flow hedge accounting on AOCI for the periods presented:


(In thousands)	Amount of Gain Recognized in OCI on Derivative		Amount of Gain Recognized in OCI Included Component		Amount of Gain (Loss) Recognized in OCI Excluded Component		Location of Gain (Loss) Recognized from AOCI into Income	Amount of Gain Reclassified from OCI into Income		Amount of Gain Reclassified from AOCI into Income Included Component		Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component
Three Months Ended June 30, 2026
Interest rate derivatives	$	231	$	231	$	—	Interest Expense	$	22	$	22	$	—
Three Months Ended June 30, 2025
Interest rate derivatives	—		—		—		Interest Expense	—		—		—
Six Months Ended June 30, 2026
Interest rate derivatives	526		526		—		Interest Expense	53		53		—
Six Months Ended June 30, 2025
Interest rate derivatives	—		—		—		Interest Expense	—		—		—

The following table presents the effect of fair value and cash flow hedge accounting on the Consolidated Statements of Income for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Total amounts of expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded	$	22	$	—	$	53	$	—
The effects of fair value or cash flow hedging:
Amount of gain reclassified from AOCI into income	22		—		53		—
Amount of gain reclassified from AOCI into income - included component	22		—		53		—
Amount of gain (loss) reclassified from AOCI into income - excluded component	—		—		—		—

During the next 12 months, the Company estimates that an additional $248 thousand will be reclassified as a reduction to interest expense.

Note 8 – Fair Value Measurements

Fair value is the exchange price that would be received to sell the asset or paid to transfer the liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.

Fair value measurement establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 — Quoted prices for similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

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Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).

An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

The following tables present assets and liabilities carried at fair value and the basis of measurement used at the periods presented:


	June 30, 2026
(In thousands)	Basis	Level 1		Level 2		Level 3		Total
Assets
Equity securities with readily determinable fair values	Recurring	$	938	$	—	$	—	$	938
AFS Investment Securities:
U.S. Government and agencies		—		53,099		—		53,099
Collateralized mortgage obligations		—		92,019		—		92,019
Residential mortgage-backed securities		—		165,859		—		165,859
Commercial mortgage-backed securities		—		116,748		—		116,748
State and municipal		—		10,522		—		10,522
Corporate bonds		—		27,969		—		27,969


Total AFS Investment Securities	Recurring	$	—	$	466,216	$	—	$	466,216
Loans held for sale	Recurring	—		33,528		—		33,528
Derivative financial instruments - assets	Recurring	—		5,977		—		5,977
Individually evaluated loans	Non-recurring	—		—		243		243
Foreclosed assets held for resale	Non-recurring	—		—		569		569
Liabilities
Derivative financial instruments - liabilities	Recurring	$	—	$	4,079	$	—	$	4,079


	December 31, 2025
(In thousands)	Basis	Level 1		Level 2		Level 3		Total
Assets
Equity securities with readily determinable fair values	Recurring	$	949	$	—	$	—	$	949
AFS Investment Securities:
U.S. Government and agencies		—		59,352		—		59,352
Collateralized mortgage obligations		—		74,030		—		74,030
Residential mortgage-backed securities		—		173,688		—		173,688
Commercial mortgage-backed securities		—		122,209		—		122,209
State and municipal		—		8,450		—		8,450
Corporate bonds		—		29,165		—		29,165


Total AFS Investment Securities	Recurring	$	—	$	466,894	$	—	$	466,894
Loans held for sale	Recurring	—		28,170		—		28,170
Derivative financial instruments - assets	Recurring	—		5,159		—		5,159
Individually evaluated loans	Non-recurring	—		—		550		550
Foreclosed assets held for resale	Non-recurring	—		—		19		19
Liabilities
Derivative financial instruments - liabilities	Recurring	$	—	$	3,816	$	—	$	3,816

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The valuation techniques used to measure fair value for the items in the preceding tables are as follows:

Equity securities — The fair value of equity securities with readily determinable fair values is recorded on the Consolidated Statements of Condition, with realized and unrealized gains and losses reported in noninterest income on the Consolidated Statements of Income. They are classified as Level 1 assets.

Available for sale investment securities — Included in this asset category are debt and pass through securities. Level 2 investment securities are valued by a third-party pricing service. The pricing service uses pricing models that vary based on asset class and incorporate available market information, including quoted prices of investment securities with similar characteristics. Because many fixed income securities do not trade on a daily basis, pricing models use available information, as applicable, through processes such as benchmark yield curves, benchmarking of like securities, sector groupings and matrix pricing. Standard market inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, including market research publications. For certain security types, additional inputs may be used, or some of the standard market inputs may not be applicable.

• U.S. Government and agencies — Fair values are determined by a third-party pricing service, as detailed above. These debt securities are classified as Level 2.

• Collateralized mortgage obligations, Mortgage-backed securities and State and Municipal securities — Fair values are determined by a third-party pricing service, as detailed above. These debt securities are classified as Level 2.

• Corporate bonds — This category consists of subordinated and senior debt issued by financial institutions and the fair values for these corporate debt securities are determined by a third-party pricing service, as detailed above. They are classified as Level 2 investments.

Loans held for sale — This category includes mortgage loans HFS that are measured at fair value utilizing Level 2 measurements. Fair values are measured as the price that secondary market investors were offering for loans with similar characteristics.

Derivative financial instruments — Derivative financial instruments include interest rate lock commitments, forward commitments and interest rate derivatives. The fair value of interest rate lock commitments is derived from the value of the underlying loans, adjusted for changes in market interest rates relative to the committed rate. The fair value of forward commitments is based on quoted prices for mortgage-backed securities with similar characteristics. The fair value of interest rate derivatives and risk participations is based upon broker quotes. The fair value of both the assets and the related liabilities are determined in the same manner and are all classified as Level 2 assets.

Individually evaluated loans — This category consists of loans that were individually evaluated for impairment and have a specific reserve. They are classified as Level 3 assets.

Foreclosed assets held for resale — This category consists of foreclosed assets that are held for resale and classified as Level 3 assets, for which the fair values were based on estimated selling prices less estimated selling costs for similar assets in active markets.

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The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value:

(Dollars in thousands)

Fair Value Estimate

Valuation Technique 1

Unobservable Input 2

Range

Weighted Average

June 30, 2026

Individually evaluated loans

243

Appraisal of collateral

Appraisal adjustments

26% – 100%

84%

Foreclosed assets held for resale

569

Appraisal of collateral

Appraisal adjustments

27%

December 31, 2025

Individually evaluated loans

550

Appraisal of collateral

Appraisal adjustments

16% – 100%

43%

Foreclosed assets held for resale

Appraisal of collateral

Appraisal adjustments

__________________________________________________________________

1Fair value is generally determined through management’s estimate or independent third-party appraisals of the underlying collateral, which generally

includes various Level 3 inputs which are not observable.

2Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received and/or age of the appraisal.

Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective reporting dates and have not been reevaluated or updated for purposes of these Consolidated Financial Statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period end. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful.

FHLB and Atlantic Community Banker’s Bank stock represent restricted investments and are carried at cost less any impairment on the Consolidated Statement of Condition, which is a reasonable estimate of fair value. There was no impairment identified as of June 30, 2026 or December 31, 2025.

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The following tables present the carrying amount and the estimated fair value of the Corporation’s financial instruments:


	June 30, 2026
	Carrying Amount		Estimated Fair Value
(In thousands)			Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	27,995	$	27,995	$	27,995	$	—	$	—
Interest-bearing deposits with banks	53,840		53,840		53,840		—		—
Equity securities with readily determinable fair values	938		938		938		—		—
Investment securities AFS	466,216		466,216		—		466,216		—
Investment securities HTM	62,620		56,576		—		56,576		—
Loans held for sale	33,528		33,528		—		33,528		—
Loans, net	2,374,098		2,375,817		—		—		2,375,817
Accrued interest receivable	10,920		10,920		—		10,920		—

Derivative assets	5,977		5,977		—		5,977		—

Financial liabilities:
Demand deposits, savings and money markets	$	2,054,781	$	2,054,781	$	—	$	2,054,781	$	—
Time deposits	480,895		474,689		—		474,689		—
Securities sold under repurchase agreements	13,888		13,888		—		13,888		—
Federal funds purchased	4,371		4,371		—		4,371		—
FHLB Advances	285,000		285,700		—		285,700		—
Trust preferred and subordinated debt	19,884		20,301		—		20,301		—
Accrued interest payable	1,996		1,996		—		1,996		—
Derivative liabilities	4,079		4,079		—		4,079		—


	December 31, 2025
	Carrying Amount		Estimated Fair Value
(In thousands)			Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	20,611	$	20,611	$	20,611	$	—	$	—
Interest-bearing deposits with banks	45,037		45,037		45,037		—		—
Equity securities with readily determinable fair values	949		949		949		—		—
Investment securities AFS	466,894		466,894		—		466,894		—
Investment securities HTM	63,288		57,537		—		57,537		—
Loans held for sale	28,170		28,170		—		28,170		—
Loans, net	2,306,842		2,294,388		—		—		2,294,388
Accrued interest receivable	10,950		10,950		—		10,950		—

Derivative assets	5,159		5,159		—		5,159		—

Financial liabilities:
Demand deposits, savings and money markets	$	1,997,256	$	1,997,256	$	—	$	1,997,256	$	—
Time deposits	452,929		448,051		—		448,051		—
Securities sold under repurchase agreements	16,129		16,129		—		16,129		—
Federal funds purchased	3,611		3,611		—		3,611		—
FHLB Advances	280,000		282,910		—		282,910		—
Trust preferred and subordinated debt	20,376		19,626		—		19,626		—
Accrued interest payable	2,186		2,186		—		2,186		—
Derivative liabilities	3,816		3,816		—		3,816		—

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Note 9 – Defined Benefit Pension Plan

The components of net periodic benefit income related to the non-contributory, defined benefit pension plan were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Service cost	$	90	$	91	$	180	$	182
Interest cost	396		399		792		798
Expected return on plan assets	(742)		(684)		(1,484)		(1,369)



Net Periodic Benefit Income	$	(256)	$	(194)	$	(512)	$	(389)

The Corporation has determined that it will not be contributing to the defined benefit plan in 2026 based on current levels and expected returns on plan assets. Effective April 1, 2012, no inactive or former participant in the plan is eligible to again participate in the plan and no employee hired after March 31, 2012 is eligible to participate in the plan.

Note 10 – Commitments and Contingencies

Commitments

The Corporation is a party to financial instruments with OBS risk in the normal course of business to meet the financing needs of its customers. These financial instruments consist primarily of commitments to extend credit (typically mortgages and commercial loans) and, to a lesser extent, standby letters of credit. To varying degrees, these instruments involve elements of credit and interest rate risk in excess of the amount recognized on the Consolidated Statements of Condition.

The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The Corporation does not anticipate any material losses from these commitments.

Commitments to extend credit, including commitments to grant loans and unfunded commitments under lines of credit, are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extensions of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property and equipment and income-producing commercial properties. On loans secured by real estate, the Corporation generally requires loan to value ratios of no greater than 80%.

Standby letters of credit are conditional commitments issued by the Corporation to guarantee the performance of a customer to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements and similar transactions. The terms of the letters of credit vary and may have renewal features. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Corporation generally holds collateral and/or personal guarantees supporting those commitments for which collateral is deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral and the enforcement of guarantees would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees.

The Corporation maintains a $5.0 million unsecured line of credit with a correspondent bank. The Corporation guarantees a note related to a $1.5 million commercial line of credit with a correspondent bank, with normal terms and conditions for such a line, for ACNB Insurance Services, the borrower. The commercial line of credit is for general working capital needs as they arise by ACNB Insurance Services. The liability is recorded for the net drawn amount of this line, no further liability is recorded for the remaining line as to the guarantor’s obligation as the guarantor would have full recourse from all assets of its wholly-owned subsidiary. There were no advances on these lines at June 30, 2026 and at December 31, 2025.

The Corporation has not been required to perform on any financial guarantees and has not incurred any losses on its commitments during the past three years.

Table of Contents

A summary of the Corporation’s commitments were as follows:


(In thousands)	June 30, 2026		December 31, 2025
Commitments to extend credit	$	570,086	$	566,837
Standby letters of credit	25,402		24,387

Contingencies

The Corporation is subject to claims and lawsuits which arise primarily in the ordinary course of business. Based on information presently available and advice received from legal counsel representing the Corporation in connection with any such claims and lawsuits, it is the opinion of management that the disposition or ultimate determination of any such claims and lawsuits will not have a material adverse effect on the consolidated financial position, consolidated results of operations or liquidity of the Corporation.

Note 11 – Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, net of taxes, are as follows:


(In thousands)	Net Change Related to Investment Securities		Net Change Related to Derivatives Used for Cash Flow Hedges		Net Change Related to Defined Benefit Pension Plans		Accumulated Other Comprehensive Loss
Three Months Ended June 30, 2026
Balance at April 1, 2026	$	(22,143)	$	96	$	(1,412)	$	(23,459)
Other comprehensive (loss) income	(75)		163		—		88
Balance at June 30, 2026	$	(22,218)	$	259	$	(1,412)	$	(23,371)

Six Months Ended June 30, 2026
Balance at January 1, 2026	$	(19,544)	$	(109)	$	(2,521)	$	(22,174)
Other comprehensive (loss) income	(2,674)		368		1,109		(1,197)
Balance at June 30, 2026	$	(22,218)	$	259	$	(1,412)	$	(23,371)

Three Months Ended June 30, 2025
Balance at April 1, 2025	$	(31,810)	$	—	$	(3,508)	$	(35,318)
Other comprehensive income	2,467		—		—		2,467
Balance at June 30, 2025	$	(29,343)	$	—	$	(3,508)	$	(32,851)

Six Months Ended June 30, 2025
Balance at January 1, 2025	$	(38,160)	$	—	$	(3,508)	$	(41,668)
Other comprehensive income	8,817		—		—		8,817
Balance at June 30, 2025	$	(29,343)	$	—	$	(3,508)	$	(32,851)

Note 12 – Segment Reporting

The Corporation has two reporting segments, the Bank and ACNB Insurance Services.

Segment information as of and for the periods listed below is as follows:


(In thousands)	Banking		Insurance		Other1		Consolidated
Three Months Ended June 30, 2026
Interest and dividend income	$	43,699	$	—	$	(14)	$	43,685
Noninterest income	5,970		2,991		(143)		8,818
Total consolidated revenues							52,503
Interest expense	9,347		—		336		9,683
Provision for credit losses and unfunded commitments	447		—		—		447
Depreciation and amortization expense	1,401		188		—		1,589
Salaries and employee benefits	11,958		1,693		110		13,761
Other noninterest expense2	7,275		383		117		7,775
Income (loss) before income taxes	19,241		727		(720)		19,248
Income tax expense (benefit)	3,981		205		(152)		4,034
Net income (loss)	$	15,260	$	522	$	(568)	$	15,214
Total assets	$	3,303,705	$	19,556	$	(4,398)	$	3,318,863
Goodwill	$	56,064	$	8,385	$	—	$	64,449
Capital expenditures	$	516	$	—	$	—	$	516

Three Months Ended June 30, 2025
Interest and dividend income	$	41,576	$	1	$	(1)	$	41,576
Noninterest income	5,775		2,908		(1)		8,682
Total consolidated revenues							50,258
Interest expense	10,316		—		248		10,564
Reversal of provision for credit losses and unfunded commitments	(582)		—		—		(582)
Depreciation and amortization expense	1,583		190		—		1,773
Salaries and employee benefits	12,020		1,572		101		13,693
Other noninterest expense2	9,385		419		96		9,900
Income (loss) before income taxes	14,629		728		(447)		14,910
Income tax (benefit) expense	3,167		189		(94)		3,262
Net income (loss)	$	11,462	$	539	$	(353)	$	11,648
Total assets	$	3,242,501	$	22,693	$	(5,666)	$	3,259,528
Goodwill	$	56,064	$	8,385	$	—	$	64,449
Net capital expenditures	$	(199)	$	14	$	—	$	(185)

__________________________________________________________________

1Includes the holding company and intercompany eliminations, including the intersegment elimination of interest income and interest expense.

2Other noninterest expense for Banking includes equipment, net occupancy, professional services, other tax, FDIC and regulatory and merger-related expenses.

Other noninterest expense for Insurance includes equipment, net occupancy and professional services expenses.


(In thousands)	Banking		Insurance		Other1		Consolidated
Six Months Ended June 30, 2026
Interest and dividend income	$	85,917	$	1	$	(1)	$	85,917
Noninterest income	11,940		5,296		(144)		17,092
Total consolidated revenues							103,009
Interest expense	18,784		—		616		19,400
Provision for credit losses and unfunded commitments	358		—		—		358
Depreciation and amortization expense	2,878		376		—		3,254
Salaries and employee benefits	24,176		3,392		220		27,788
Other noninterest expense2	14,633		781		284		15,698
Income (loss) before income taxes	37,028		748		(1,265)		36,511
Income tax expense (benefit)	7,652		208		(266)		7,594
Net income (loss)	$	29,376	$	540	$	(999)	$	28,917
Total assets	$	3,303,705	$	19,556	$	(4,398)	$	3,318,863
Goodwill	$	56,064	$	8,385	$	—	$	64,449
Capital expenditures	$	850	$	—	$	—	$	850

Six Months Ended June 30, 2025
Interest and dividend income	$	77,866	$	2	$	(2)	$	77,866
Noninterest income	10,800		5,055		11		15,866
Total consolidated revenues							93,732
Interest expense	19,267		—		497		19,764
Provision for credit losses and unfunded commitments	4,906		—		—		4,906
Depreciation and amortization expense	2,833		385		—		3,218
Salaries and employee benefits	23,318		3,034		202		26,554
Other noninterest expense2	23,949		755		225		24,929
Income (loss) before income taxes	14,393		883		(915)		14,361
Income tax expense (benefit)	2,940		231		(186)		2,985
Net income (loss)	$	11,453	$	652	$	(729)	$	11,376
Total assets	$	3,242,501	$	22,693	$	(5,666)	$	3,259,528
Goodwill	$	56,064	$	8,385	$	—	$	64,449
Capital expenditures	$	455	$	19	$	—	$	474

__________________________________________________________________

1Includes the holding company and intercompany eliminations, including the intersegment elimination of interest income and interest expense.

2Other noninterest expense for Banking includes equipment, net occupancy, professional services, other tax, FDIC and regulatory and merger-related expenses.

Other noninterest expense for Insurance includes equipment, net occupancy and professional services expenses.

ACNB CORPORATION

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is management’s discussion and analysis of the significant changes in the financial condition, results of operations, comprehensive income, capital resources and liquidity presented in its accompanying Consolidated Financial Statements for ACNB Corporation, a financial holding company. Please read this discussion in conjunction with the Consolidated Financial Statements and disclosures included herein. Current performance does not guarantee, assure or indicate similar performance in the future.

Forward-Looking Statements

In addition to historical information, this Form 10-Q may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, noninterest income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of Management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Corporation’s Market Areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as national, regional and local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: short-term and long-term effects of inflation and rising costs on the Corporation, customers and economy; legislative and regulatory changes; banking system instability caused by failures and financial uncertainty of various banks which may adversely impact the Corporation and its securities and loan values, deposit stability, capital adequacy, financial condition, operations, liquidity, and results of operations; effects of governmental and fiscal policies, as well as legislative and regulatory changes; effects of new laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which the Corporation and its subsidiaries must comply; impacts of the capital and liquidity requirements of the Basel III standards or any similar standards; effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future market conditions; future actions or inactions of the United States government, including the effects of short-term and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the federal government; effects of economic conditions particularly with regard to the negative impact of any pandemic, epidemic or health-related crisis and the responses thereto on the operations of the Corporation and current customers, specifically the effect of the economy on loan customers’ ability to repay loans; effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; inflation, securities market and monetary fluctuations; risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities, and interest rate protection agreements, as well as interest rate risks; difficulties in acquisitions and integrating and operating acquired business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; effects of technology changes; effects of general economic conditions and more specifically in the Corporation’s Market Areas; failure of assumptions underlying the establishment of reserves for credit losses and estimations of values of collateral and various financial assets and liabilities; acts of war or terrorism or geopolitical instability; disruption of credit and equity markets; ability to manage current levels of impaired assets; loss of certain key officers; ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s intellectual property rights; continued relationships with major customers; potential impacts to the Corporation from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses; and, trade and tariff uncertainties and volatility. Management considers subsequent events occurring after the balance sheet date for matters which may require adjustments to, or disclosure in, the Consolidated Financial Statements. We caution readers not to place undue reliance on these forward-looking statements. They only reflect Management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K and the Quarterly Reports on Form 10-Q. Please also carefully review any Current Reports on Form 8-K filed by the Corporation with the SEC.

Executive Overview

ACNB Corporation is the financial holding company for the wholly-owned subsidiaries of ACNB Bank and ACNB Insurance Services. ACNB Bank provides a full range of retail and commercial financial services in Pennsylvania and Maryland primarily through its network of 33 community banking offices and two loan production offices. ACNB Insurance Services offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster, Maryland, and Gettysburg, Pennsylvania and is licensed to do business in 46 states.

The primary source of the Corporation’s revenues is net interest income derived from interest earned on loans and investments, less deposit and borrowing funding costs. Revenues are influenced by general economic factors, including market interest rates, the economies of the markets served, stock market conditions, as well as competitive forces within the markets. The Corporation also generates revenue through commissions and fees earned on various services and financial products offered to its customers and through gains on sales of assets such as loans, investments and properties. The Corporation incurs expenses to generate the revenue through provision for credit losses, noninterest expense and income taxes. The Corporation’s overall strategy is to increase loan growth in its local markets while maintaining a reasonable funding base by offering competitive deposit products and services.

Financial results for the six months ended June 30, 2025 were impacted by two discrete items that were related to the Acquisition of Traditions Bancorp, Inc. which was completed on February 1, 2025: a provision for credit losses on non-PCD loans of $4.2 million, net of taxes, and merger-related expenses totaling $7.8 million, net of taxes. Financial results for the six months ended June 30, 2025 include ACNB’s standalone results for the month of January 2025.

The following table presents a summary of the Corporation’s earnings and selected performance and asset quality ratios:


	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands, except per share data)	2026			2025			2026			2025
Net income	$	15,214		$	11,648		$	28,917		$	11,376
Diluted earnings per share	$	1.49		$	1.11		$	2.81		$	1.12
Cash dividends declared	$	0.92		$	0.34		$	1.30		$	0.66
Return on average assets (annualized)	1.85		%	1.43		%	1.78		%	0.74		%
Return on average equity (annualized)	14.54		%	11.96		%	13.75		%	6.11		%
Net interest margin1	4.56		%	4.21		%	4.51		%	4.14		%
Non-performing loans to total loans, net of unearned income2	0.41		%	0.43		%	0.41		%	0.43		%
Non-performing assets to total assets3	0.31		%	0.31		%	0.31		%	0.31		%
Net charge-offs to average loans outstanding (annualized)	0.03		%	0.01		%	0.01		%	0.01		%
Allowance for credit losses to total loans, net of unearned income	1.00		%	1.04		%	1.00		%	1.04		%

__________________________________________________________________

1 Income on interest-earning assets has been computed on a FTE basis using the 21% federal income tax statutory rate.

2 Non-performing loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest.

3 Non-performing assets consists of non-performing loans and foreclosed assets held for resale.

Summary Financial Results

•Net Interest Income — Net interest income was $34.0 million for the three months ended June 30, 2026 compared to $31.0 million for the same period of 2025, an increase of $3.0 million. For the six months ended June 30, 2026, net interest income was $66.5 million compared to $58.1 million for the same period of 2025. The increase in net interest income was driven primarily by loan growth, new loans and investment securities funded during the quarter at higher rates than those that paid off or matured, and the continued benefit of lower funding costs. In addition, the yield on investment securities during the six months ended June 30, 2026 compared to the same period in the prior year was impacted by a repositioning of the investment securities portfolio completed during the three months ended December 31, 2025.

◦Net Interest Margin — FTE net interest margin increased to 4.56% for the three months ended June 30, 2026 compared to 4.21% in the same period of 2025, an increase of 35 bps. FTE net interest margin increased to 4.51% for the six months ended June 30, 2026 compared to 4.14% in the same period of 2025, an increase of 37 bps. The accretion impact of acquisition accounting adjustments on loans and deposits from the

Acquisition was $1.8 million and $2.2 million for the three months ended June 30, 2026 and 2025, respectively, and $3.6 million and $3.7 million for the six months ended June 30, 2026 and 2025, respectively.

◦Loan Growth — Average loans increased $46.0 million for the three months ended June 30, 2026, compared to the same period of 2025, driven primarily by organic growth in the commercial real estate portfolio and increased $126.9 million for the six months ended June 30, 2026, compared to the same period of 2025 driven primarily by organic growth in the commercial real estate portfolio and the Acquisition.

◦Deposit Growth — Average noninterest-bearing deposits increased $20.1 million and $30.8 million for the three and six months ended June 30, 2026, respectively, compared to same periods of 2025 driven primarily by promotional incentives on commercial checking accounts and the Acquisition. Average interest-bearing deposits decreased $14.0 million, for three months ended June 30, 2026 primarily as a result of attrition of higher cost money market deposits from the Acquisition. Average interest-bearing deposits increased $68.5 million for the six months ended June 30, 2026 compared to the same period of 2025 driven primarily by the timing of the Acquisition.

◦Yield on Average Earning Assets — For the three and six months ended June 30, 2026, the yields on average earning assets were 5.86% and 5.82%, respectively, an increase of 22 and 27 bps compared to the same periods of 2025.

◦Rate on Average Interest-bearing Liabilities — For the three and six months ended June 30, 2026, the rates on average interest-bearing liabilities were 1.73% and 1.75%, respectively, a decrease of 14 and 9 bps, respectively, compared to the same periods of 2025.

•Asset Quality — The allowance for credit losses was $24.0 million at June 30, 2026, compared to $23.7 million at December 31, 2025. The increase was driven primarily by loan growth.

◦Annualized net charge-offs to total average loans outstanding for the three and six months ended June 30, 2026 were 0.03% and 0.01%, respectively, compared to 0.01% for both of the same periods of 2025.

◦Non-performing loans were $9.8 million, or 0.41%, of total loans at June 30, 2026 compared to $10.1 million, or 0.43%, of total loans at June 30, 2025. The decrease was driven primarily by charge-offs, the movement of several loans to foreclosed assets held for resale and paydowns.

•Noninterest income — Noninterest income was $8.8 million and $17.1 million for the three and six months ended June 30, 2026, respectively, an increase of $136 thousand and $1.2 million, respectively, for the same periods of 2025. The increase for the three months ended June 30, 2026 was driven primarily by higher wealth management income and higher earnings on investment in bank-owned life insurance, partially offset by lower other income due to lower credit card processing and letter of credit fees. In addition to the impact of the Acquisition, the increase for the six months ended June 30, 2026 compared to the same period of 2025 was driven primarily by higher wealth management income, gain on assets HFS and earnings on investment in bank-owned life insurance.

•Noninterest expenses — Noninterest expense was $23.1 million and $46.7 million for the three and six months ended June 30, 2026, a decrease of $2.2 million and $8.0 million for the same periods of 2025, respectively. The decrease was driven primarily by merger-related expenses due to the Acquisition during the three and six months ended June 30, 2025.

A more thorough discussion of the Corporation’s results of operations and financial condition is included in the following pages.

CRITICAL ACCOUNTING ESTIMATES

The accounting policies that the Corporation’s management deems to be most important to the portrayal of its financial condition and results of operations because they require management’s most difficult, subjective or complex judgment often result in the need to make estimates about the effect of such matters which are inherently uncertain. The following accounting estimate is deemed to be critical by management:

Allowance for Credit Losses — The ACL represents an amount which, in management’s judgment, is adequate to absorb expected credit losses on outstanding loans at the balance sheet date based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience. The ACL is measured and recorded upon the initial recognition of a financial asset. The

ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (reversal of) credit losses, which is recorded as a current period operating expense.

Determination of an appropriate ACL is inherently complex and requires the use of significant and highly subjective estimates. The reasonableness of the ACL is reviewed quarterly by management.

Management believes it uses relevant information available to make determinations about the ACL and that it has established the existing allowance in accordance with GAAP. However, the determination of the ACL requires significant judgment, and estimates of expected credit losses in the loan portfolio can vary from the amounts actually observed. While management uses available information to recognize expected credit losses, future additions to the ACL may be necessary based on changes in the loans comprising the portfolio, changes in the current and forecasted economic conditions, changes in the interest rate environment which may directly impact prepayment and curtailment rate assumption, and changes in the financial condition of borrowers. As of June 30, 2026, the Company believes that its ACL was adequate.

RESULTS OF OPERATIONS

Three months ended June 30, 2026 compared to three months ended June 30, 2025

Net income for the three months ended June 30, 2026 was $15.2 million, or $1.49 diluted earnings per share, compared to net income of $11.6 million, or $1.11 diluted earnings per share for the same period of 2025, an increase of $3.6 million, or $0.38 diluted earnings per share. The financial results for the three months ended June 30, 2025 were impacted by merger-related expenses, net of taxes, totaling $1.5 million.

Net Interest Income

Net interest income totaled $34.0 million for the three months ended June 30, 2026 compared to $31.0 million for the same period of 2025, an increase of $3.0 million. The FTE net interest margin for the three months ended June 30, 2026 was 4.56%, a 35 bps increase from 4.21% for the same period of 2025. The increase in net interest income and FTE net interest margin was driven primarily by loan growth, new loans and investment securities funded at higher rates than those that paid off or matured and the continued benefit of lower funding costs. In addition, the repositioning of the investment securities portfolio completed during the three months ended December 31, 2025 contributed to higher yields. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.8 million and $2.2 million for the three months ended June 30, 2026 and 2025, respectively. The Corporation manages the risk associated with changes in interest rates through the techniques described within Item 3, “Quantitative and Qualitative Disclosures About Market Risk” in this Quarterly Report on Form 10-Q.

The following table provides a comparative average Consolidated Statement of Condition and net interest income analysis for the periods presented. Interest income and yields are presented on a FTE basis. The discussion following this table is based on these tax equivalent amounts.


	Three Months Ended June 30,
	2026						2025
(Dollars in thousands)	Average Balance		Interest 1		Yield/ Rate		Average Balance		Interest 1		Yield/ Rate
ASSETS
Loans:
Taxable	$	2,345,905	$	37,883	6.48	%	$	2,296,429	$	36,555	6.38	%
Tax-exempt	55,382		442		3.20		58,903		401		2.73
Total Loans 2	2,401,287		38,325		6.40		2,355,332		36,956		6.29
Investment Securities:
Taxable	490,321		4,609		3.77		482,933		3,590		2.98
Tax-exempt	55,946		405		2.90		54,261		358		2.65
Total Investment Securities 3	546,267		5,014		3.68		537,194		3,948		2.95
Interest-bearing deposits with banks	56,171		524		3.74		77,348		831		4.31
Total Earning Assets	3,003,725		43,863		5.86		2,969,874		41,735		5.64
Cash and due from banks	25,827						25,610
Premises and equipment	28,757						32,019
Other assets	254,925						255,624
Allowance for credit losses	(23,560)						(24,615)
Total Assets	$	3,289,674					$	3,258,512

LIABILITIES
Interest-bearing demand deposits	$	650,258	$	595	0.37	%	$	612,812	$	514	0.34	%
Money markets	489,449		2,266		1.86		536,755		2,706		2.02
Savings deposits	335,451		26		0.03		342,327		27		0.03
Time deposits	476,319		3,727		3.14		473,589		4,037		3.42
Total Interest-Bearing Deposits	1,951,477		6,614		1.36		1,965,483		7,284		1.49
Short-term borrowings	73,266		552		3.02		44,515		341		3.07
Long-term borrowings	215,038		2,517		4.69		255,347		2,939		4.62
Total Borrowings	288,304		3,069		4.27		299,862		3,280		4.39
Total Interest-Bearing Liabilities	2,239,781		9,683		1.73		2,265,345		10,564		1.87
Noninterest-bearing demand deposits	583,453						563,321
Other liabilities	46,848						39,271
Stockholders’ Equity	419,592						390,575
Total Liabilities and Stockholders’ Equity	$	3,289,674					$	3,258,512
Taxable Equivalent Net Interest Income			34,180						31,171
Taxable Equivalent Adjustment			(178)						(159)
Net Interest Income			$	34,002					$	31,012
Cost of Funds					1.38	%					1.50	%
FTE Net Interest Margin					4.56	%					4.21	%

__________________________________________________________________

1 Income on interest-earning assets has been computed on a FTE basis using the 21% federal income tax statutory rate.

2 Average balances include non-accrual loans and are net of unearned income.

3 Average balance of investment securities is computed at fair value.

The following table analyzes the relative impact on FTE net interest income attributed to changes in the volume of interest-earning assets and interest-bearing liabilities and changes in yields and rates for the three months ended June 30, 2026 compared to the same period of 2025:


	2026 versus 2025
(Dollars in thousands)	Volume		Yield/Rate 1		Net
INTEREST-EARNING ASSETS
Loans
Taxable	$	787	$	541	$	1,328
Tax-exempt	(24)		65		41
Total Loans 2	763		606		1,369
Investment Securities
Taxable	55		964		1,019
Tax-exempt	11		36		47
Total Investment Securities 3	66		1,000		1,066
Interest-bearing deposits with banks	(228)		(79)		(307)
Total	$	601	$	1,527	$	2,128
INTEREST-BEARING LIABILITIES
Interest-bearing demand deposits	$	32	$	49	$	81
Money markets	(238)		(202)		(440)
Savings deposits	(1)		—		(1)
Time deposits	23		(333)		(310)
Total Interest-Bearing Deposits	(184)		(486)		(670)
Short-term borrowings	220		(9)		211
Long-term borrowings	(464)		42		(422)
Total Borrowings	(244)		33		(211)
Total	(428)		(453)		(881)
Change in Net Interest Income	$	1,029	$	1,980	$	3,009

__________________________________________________________________

1 The effect of changing volume and rate, which cannot be segregated, has been allocated entirely to the rate column.

2 Based on average balances and includes non-accrual loans and are net of unearned income.

3 Average balance of investment securities is computed at fair value.

Total FTE interest income increased $2.1 million during the three months ended June 30, 2026 compared to the same period of 2025, driven primarily by an increase in yield of interest earning assets, which was driven primarily by the repositioning of the investment securities portfolio, as well as new loans and investment securities funded at higher rates than those that paid off or matured. Also contributing to the increase was growth of $46.0 million in average loan balances primarily in the commercial real estate portfolio.

Total interest expense decreased $881 thousand during the three months ended June 30, 2026 compared to the same period of 2025, driven primarily by lower average balances and costs of interest-bearing deposits, primarily a result of attrition of higher cost money market and time deposits from the Acquisition, as well as lower average borrowings.

Provision for Credit Losses and Unfunded Commitments

The provision for credit losses was $554 thousand for the three months ended June 30, 2026 compared to a reversal of $228 thousand for the same period of 2025, and was driven primarily by loan growth. The reversal of the provision for unfunded commitments was $107 thousand for the three months ended June 30, 2026 compared to a reversal of $354 thousand for the same period of 2025. The Corporation assesses risks and reserves required compared with the balances in the ACL and unfunded commitments on a quarterly basis.

Noninterest Income

The following table presents the components of noninterest income:


	Three Months Ended June 30,				Increase (Decrease)
(In thousands)	2026		2025		$		%
NONINTEREST INCOME
Insurance commissions	$	2,991	$	2,908	$	83	2.9	%
Gain from mortgage loans held for sale	1,463		1,575		(112)		(7.1)
Service charges on deposits	1,243		1,179		64		5.4
Wealth management	1,191		1,090		101		9.3
ATM debit card charges	933		905		28		3.1
Earnings on investment in bank-owned life insurance	756		627		129		20.6

Gain on life insurance proceeds	—		31		(31)		(100.0)
Other	245		342		(97)		(28.4)
Net gains on sales or calls of investment securities	—		22		(22)		100.0
Net (losses) gain on equity securities	(4)		3		(7)		N/M


Total Noninterest Income	$	8,818	$	8,682	$	136	1.6	%

The more significant variations by category:

•The increase in wealth management was driven primarily by assets under management growth due to new business generation and positive market impacts

•The increase in earnings on investment in bank-owned life insurance was driven primarily by the purchase of new policies in the fourth quarter of 2025

•The decrease in other was primarily attributable to lower credit card processing and letter of credit fees

Noninterest Expenses

The following table presents the components of noninterest expense:


	Three Months Ended June 30,				Increase (Decrease)
(In thousands)	2026		2025		$		%
NONINTEREST EXPENSES
Salaries and employee benefits	$	13,761	$	13,693	$	68	0.5	%
Equipment	2,552		2,539		13		0.5
Net occupancy	1,209		1,277		(68)		(5.3)
Intangible assets amortization	1,028		1,141		(113)		(9.9)
Professional services	736		743		(7)		(0.9)
Other tax	317		220		97		44.1
FDIC and regulatory	459		435		24		5.5


Merger-related	—		1,943		(1,943)		(100.0)

Other	3,063		3,375		(312)		(9.2)
Total Noninterest Expenses	$	23,125	$	25,366	$	(2,241)	(8.8)	%

The more significant fluctuations by category:

•The decrease in intangible assets amortization was the result of normal attrition

•The increase in other tax was driven primarily by asset growth due to the Acquisition

•The decrease in merger-related was driven by the lack of Acquisition-related expenses in the current period

•The decrease in other was driven primarily by the write-off of stale conversion related items in the prior year

Income Taxes

The Corporation recognized income tax expense of $4.0 million during the three months ended June 30, 2026 compared to $3.3 million during the same period of 2025. The provision for income taxes reflects a combined Federal and State ETR of 21.0% and 21.9% for the three months ended June 30, 2026 and 2025, respectively. The variances from the federal statutory rate of 21% are generally due to tax-free income, which includes, but not limited to, interest income on tax-free loans and investment securities and income from bank-owned life insurance policies, federal income tax credits and the impact of non-tax deductible expenses such as certain merger-related costs and state taxes.

Six months ended June 30, 2026 compared to six months ended June 30, 2025

Net income for the six months ended June 30, 2026 was $28.9 million, or $2.81 diluted earnings per share, compared to net income of $11.4 million, or $1.12 diluted earnings per share for the same period of 2025, an increase of $17.5 million and $1.69 diluted earnings per share. The increase in net income for the six months ended June 30, 2026 was driven primarily by higher net interest income and the impact of two discrete items for the six months ended June 30, 2025 that were related to the Acquisition: a provision for credit losses on non-PCD loans of $4.2 million, net of taxes, and merger-related expenses totaling $7.8 million, net of taxes. Financial results for the six months ended June 30, 2025 include ACNB’s standalone results for the month of January 2025.

Net Interest Income

Net interest income totaled $66.5 million for the six months ended June 30, 2026 compared to $58.1 million for the same period of 2025, an increase of $8.4 million. The FTE net interest margin for the six months ended June 30, 2026 was 4.51%, a 37 bps increase from 4.14% for the same period of 2025. The increases were driven primarily by loan growth, new loans and investment securities funded at higher rates than those that paid off or matured, and the continued benefit of lower funding costs. In addition, the yield on investment securities was impacted by a repositioning of the investment securities portfolio completed during the three months ended December 31, 2025. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $3.6 million and $3.7 million for the six months ended June 30, 2026 and 2025, respectively.

The following table provides a comparative average balance sheet and net interest income analysis for the periods presented. The discussion following this table is based on these taxable-equivalent amounts.


	Six Months Ended June 30,
	2026						2025
(Dollars in thousands)	Average Balance		Interest 1		Yield/ Rate		Average Balance		Interest 1		Yield/ Rate
ASSETS
Loans:
Taxable	$	2,318,337	$	74,185	6.45	%	$	2,188,852	$	68,231	6.29	%
Tax-exempt	55,860		870		3.14		58,438		771		2.66
Total Loans 2	2,374,197		75,055		6.37		2,247,290		69,002		6.19
Investment Securities:
Taxable	492,260		9,184		3.76		465,556		6,832		2.96
Tax-exempt	55,991		803		2.89		54,459		723		2.68
Total Investment Securities 3	548,251		9,987		3.67		520,015		7,555		2.93
Interest-bearing deposits with banks	66,413		1,227		3.73		75,276		1,623		4.35
Total Earning Assets	2,988,861		86,269		5.82		2,842,581		78,180		5.55
Cash and due from banks	25,158						23,120
Premises and equipment	29,679						30,967
Other assets	252,362						240,235
Allowance for credit losses	(23,621)						(22,290)
Total Assets	$	3,272,439					$	3,114,613

LIABILITIES
Interest-bearing demand deposits	$	633,426	$	1,055	0.34	%	$	593,185	$	1,038	0.35	%
Money markets	489,702		4,493		1.85		492,273		4,690		1.92
Savings deposits	335,425		52		0.03		336,746		54		0.03
Time deposits	474,480		7,401		3.15		442,343		7,498		3.42
Total Interest-Bearing Deposits	1,933,033		13,001		1.36		1,864,547		13,280		1.44
Short-term borrowings	73,910		1,115		3.04		41,634		635		3.08
Long-term borrowings	229,379		5,284		4.65		256,447		5,849		4.60
Total Borrowings	303,289		6,399		4.25		298,081		6,484		4.39
Total Interest-Bearing Liabilities	2,236,322		19,400		1.75		2,162,628		19,764		1.84
Noninterest-bearing demand deposits	569,102						538,282
Other liabilities	42,984						38,109
Stockholders’ Equity	424,031						375,594
Total Liabilities and Stockholders’ Equity	$	3,272,439					$	3,114,613
Taxable Equivalent Net Interest Income			66,869						58,416
Taxable Equivalent Adjustment			(352)						(314)
Net Interest Income			$	66,517					$	58,102
Cost of Funds					1.39	%					1.48	%
FTE Net Interest Margin					4.51	%					4.14	%

__________________________________________________________________

1 Income on interest-earning assets has been computed on a FTE basis using the 21% federal income tax statutory rate.

2 Average balances include non-accrual loans and are net of unearned income.

3 Average balance of investment securities is computed at fair value.

The following table analyzes the relative impact on FTE net interest income attributed to changes in the volume of interest-earning assets and interest-bearing liabilities and changes in yields and rates for the six months ended June 30, 2026 compared to the same period of 2025:


	2026 versus 2025
(Dollars in thousands)	Volume		Yield/Rate 1		Net
INTEREST-EARNING ASSETS
Loans
Taxable	$	4,039	$	1,915	$	5,954
Tax-exempt	(34)		133		99
Total Loans 2	4,005		2,048		6,053
Investment Securities
Taxable	392		1,960		2,352
Tax-exempt	20		60		80
Total Investment Securities 3	412		2,020		2,432
Interest-bearing deposits with banks	(191)		(205)		(396)
Total	$	4,226	$	3,863	$	8,089
INTEREST BEARING LIABILITIES
Interest-bearing demand deposits	$	70	$	(53)	$	17
Money markets	(24)		(173)		(197)
Savings deposits	—		(2)		(2)
Time deposits	545		(642)		(97)
Total Interest-Bearing Deposits	591		(870)		(279)
Short-term borrowings	493		(13)		480
Long-term borrowings	(617)		52		(565)
Total Borrowings	(124)		39		(85)
Total	467		(831)		(364)
Change in Net Interest Income	$	3,759	$	4,694	$	8,453

__________________________________________________________________

1 The effect of changing volume and rate, which cannot be segregated, has been allocated entirely to the rate column.

2 Based on average balances and includes non-accrual loans and are net of unearned income.

3 Average balance of investment securities is computed at fair value.

Total FTE interest income increased $8.1 million during the six months ended June 30, 2026 compared to the same period of 2025 driven primarily by loan growth and new loans and investment securities funded at higher rates than those that paid off or matured. The loan growth was concentrated primarily in the commercial real estate portfolio. The repositioning of the investment securities portfolio completed during the three months ended December 31, 2025 contributed to higher yields on the investment securities portfolio.

Total interest expense decreased $364 thousand during the six months ended June 30, 2026 compared to the same period of 2025 driven primarily by lower average costs of interest-bearing deposits, primarily a result of attrition of higher cost money market and time deposits from the Acquisition, as well as lower average borrowings. The average cost of interest-bearing deposits was 1.36% for the six months ended June 30, 2026, a decrease of 8 bps compared to the same period of 2025.

Provision for Credit Losses and Unfunded Commitments

The provision for credit losses was $478 thousand for the six months ended June 30, 2026 compared to $5.7 million for the same period of 2025. The 2025 provision expense was primarily driven by a provision for credit losses of $5.5 million for acquired non-PCD loans, and the provision for 2026 was driven primarily by organic loan growth. The provision for unfunded commitments was a reversal of $120 thousand compared to a reversal of $834 thousand for the same period of 2025. The reversal of the provision for unfunded commitments for the six months ended June 30, 2025 was impacted by the incorporation of post-COVID data which resulted in lower loss rates utilized within the Bank’s ACL model. The Corporation assesses risks and reserves required compared with the balances in the ACL and unfunded commitments on a quarterly basis.

Noninterest Income

The following table presents the components of noninterest income:


	Six Months Ended June 30,				Increase (Decrease)
(In thousands)	2026		2025		$		%
NONINTEREST INCOME
Insurance commissions	$	5,119	$	5,055	$	64	1.3	%
Gain from mortgage loans held for sale	2,689		2,430		259		10.7
Service charges on deposits	2,478		2,273		205		9.0
Wealth management	2,351		2,150		201		9.3
ATM debit card charges	1,839		1,736		103		5.9
Earnings on investment in bank-owned life insurance	1,493		1,207		286		23.7
Gain on assets held for sale	177		—		177		100.0
Gain on life insurance proceeds	174		285		(111)		(38.9)
Other	734		691		43		6.2
Net gains on sales or calls of investment securities	49		22		27		122.7
Net (losses) gains on equity securities	(11)		17		(28)		N/M


Total Noninterest Income	$	17,092	$	15,866	$	1,226	7.7	%

The more significant variations by category:

•The increase in gain from mortgage loans HFS and service charges on deposits was driven primarily by the Acquisition

•The increase in wealth management was driven primarily by assets under management growth due to new business generation and positive market impacts

•The increase in earnings on investment in bank-owned life insurance was driven primarily by the purchase of new policies in the fourth quarter of 2025

•The increase in gain on assets HFS was the result of a sale of a building previously used by ACNB Insurance Services

•Gain on life insurance proceeds for both periods was the result of death benefits paid on life insurance policies

Noninterest Expenses

The following table presents the components of noninterest expense:


	Six Months Ended June 30,				Increase (Decrease)
(In thousands)	2026		2025		$		%
NONINTEREST EXPENSES
Salaries and employee benefits	$	27,788	$	26,554	$	1,234	4.6	%
Equipment	5,152		4,819		333		6.9
Net occupancy	2,742		2,719		23		0.8
Intangible assets amortization	2,084		1,998		86		4.3
Professional services	1,414		1,320		94		7.1
Other tax	894		747		147		19.7
FDIC and regulatory	901		836		65		7.8
Merger-related	—		9,974		(9,974)		(100.0)

Other	5,765		5,734		31		0.5
Total Noninterest Expenses	$	46,740	$	54,701	$	(7,961)	(14.6)	%

The more significant fluctuations by category:

•The increase in salaries and employee benefits was driven primarily by an increased number of employees attributable to the Acquisition, merit increases and higher mortgage commissions

•The increase in equipment was driven primarily by the Acquisition and the implementation of additional products into the core processing system

•The increase in other tax was driven primarily by asset growth due to the Acquisition

•The decrease in merger-related was driven by the lack of Acquisition-related expenses in the current period

Income Taxes

The Corporation recognized income taxes of $7.6 million for the six months ended June 30, 2026 compared to $3.0 million during the same period of 2025. The provision for income taxes for the six months ended June 30, 2026 and 2025 reflect a combined Federal and State ETR of 20.8%. The variances from the federal statutory rate of 21% are generally due to tax-free income, which includes, but not limited to, interest income on tax-free loans and investment securities and income from bank-owned life insurance policies, federal income tax credits and the impact of non-tax deductible expenses such as certain merger-related costs and state taxes.

FINANCIAL CONDITION

Investment Securities

ACNB uses investment securities to manage interest rate risk, provide collateral for certain funding products, provide liquidity and generate interest and dividend income. The investment securities provide the appropriate characteristics with respect to credit quality, yield and maturity relative to the management of the overall Consolidated Statements of Condition.

Total investment securities were $529.8 million at June 30, 2026 compared to $531.1 million at December 31, 2025. At June 30, 2026, the investment securities balance included a net unrealized loss on AFS investment securities of $27.9 million on amortized cost of $494.1 million compared to a net unrealized loss of $24.2 million on amortized cost of $491.1 million at December 31, 2025. At June 30, 2026, the investment securities balance included HTM investment securities with an amortized cost of $62.6 million and a fair value of $56.6 million as compared to an amortized cost of $63.3 million and a fair value of $57.5 million at December 31, 2025.

The Corporation does not own investments consisting of pools of Alt-A or subprime mortgages, private label mortgage-backed securities, or trust preferred investments.

Loans

The following table presents the composition of the loan portfolio:


					Increase (Decrease)
(In thousands)	June 30, 2026		December 31, 2025		$		%
Commercial real estate	$	1,333,050	$	1,273,813	$	59,237	4.7	%
Residential mortgage	602,738		599,051		3,687		0.6
Commercial and industrial	217,151		205,452		11,699		5.7
Home equity lines of credit	122,164		127,341		(5,177)		(4.1)
Real estate construction	115,091		116,680		(1,589)		(1.4)
Consumer	10,105		10,140		(35)		(0.3)
Gross loans	2,400,299		2,332,477		67,822		2.9
Unearned income	(2,195)		(1,963)		(232)		(11.8)
Total loans, net of unearned income	$	2,398,104	$	2,330,514	$	67,590	2.9	%

Total loans, net of unearned income increased $67.6 million, or 2.9%, from December 31, 2025 to June 30, 2026. The increase was driven primarily by growth in the commercial real estate and commercial and industrial portfolios. Total acquisition accounting adjustments on loans were $14.5 million and $18.2 million at June 30, 2026 and December 31, 2025, respectively. The majority of the loan acquisition accounting adjustments are expected to accrete back through as income as loans amortize and pay off. ACNB does not have a significant concentration of credit risk with any single borrower, industry, or geographic location other than within its Market Area.

The commercial real estate portfolio, which includes farmland, multifamily, owner-occupied and non-owner occupied commercial real estate, grew $59.2 million, or 4.7%, compared to December 31, 2025 driven primarily by farmland ($31.1 million) and owner-occupied balances ($12.5 million) partially offset by a decrease in non-owner occupied balances ($11.0 million). The following data related to the commercial real estate portfolio through the breakout charts excludes the impact of the acquisition accounting adjustments on loans. The collateral for these loans is primarily spread across Pennsylvania and Maryland at 65.7% and 32.1%, respectively, as of June 30, 2026, compared to 65.8% and 32.1%, respectively, as of December 31, 2025. Less than 3% of the portfolio is for real estate in urban areas of Baltimore, Maryland and Philadelphia, Pennsylvania. The largest sectors of the commercial real estate portfolio are retail and mixed-use commercial rental units, office complexes, apartment complexes and hotels, motels and bed and breakfast entities. Non-owner occupied commercial real estate represented 64.2% of the commercial real estate portfolio. Non-owner occupied commercial real estate borrowers are geographically dispersed throughout ACNB’s Market Area and are leasing commercial properties to a varied group of tenants including medical offices, retail space, and other commercial purpose facilities. Because of the varied nature of the tenants, in aggregate, management believes that these loans present an acceptable risk when compared to commercial loans in general.

The following chart details the percentage of the various categories included in the portfolio:

_____________________________________________________________

1 Constitutes over 40 loan categories that do not fit into the categories presented above, with no loan category representing more than 3% of the total.

The concentration of non-owner occupied commercial real estate, construction and multi-family was 231.6% of total risk-based capital of the Bank as of June 30, 2026 compared to 239.0% of total risk-based capital of the Bank as of December 31, 2025.

Residential real estate mortgages totaled $602.7 million, an increase of $3.7 million, or 0.6%, compared to December 31, 2025. Included in the residential real estate mortgages are $228.4 million of commercial loans and $61.6 million of consumer loans secured by residential real estate mortgages. Approximately 85% of the first liens have a loan to value, based on the current balance to the origination value of the property, of 80% or lower. Total residential real estate mortgages include $50.9 million of junior liens. Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a senior security position in the case of foreclosure liquidation of collateral to extinguish the debt.

Commercial and industrial totaled $217.2 million, an increase of $11.7 million, or 5.7%, compared to December 31, 2025 driven primarily by three new relationships in the Lancaster and Berks regions.

Allowance for Credit Losses and Asset Quality

The ACL at June 30, 2026 was $24.0 million, or 1.00% of total loans, net of unearned income as compared to $23.7 million, or 1.02% of loans, at December 31, 2025 and $24.4 million, or 1.04% of loans, at June 30, 2025.

Changes in the ACL were as follows for the periods presented:


	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2026			2025			2026			2025
Beginning balance	$	23,615		$	24,646		$	23,672		$	17,280
Initial allowance established for acquired PCD loans	—			—			—			1,464
Provision for (reversal of) credit losses	554			(228)			478			5,740
Loans charged-off	(192)			(86)			(274)			(171)
Recoveries on charged-off loans	29			21			130			40
Ending balance	$	24,006		$	24,353		$	24,006		$	24,353

Net charge-offs to average loans (annualized)	0.03		%	0.01		%	0.01		%	0.01		%
Allowance for credit losses to total loans	1.00		%	1.04		%	1.00		%	1.04		%

Information on nonaccrual loans, by collateral type rather than loan segment is as follows:


(Dollars in thousands)	Number of Credit Relationships	Balance		Current Specific Loss Allocations		Current Year Charge-Offs		Location	Originated
June 30, 2026

Commercial real estate	8	$	3,028	$	—	$	—	In market	2006-2022
Business assets	5	1,770		78		—		In market	2009-2023
Residential real estate	6	1,836		86		—		In market	2019-2022
Total	19	$	6,634	$	164	$	—

December 31, 2025

Commercial real estate	10	$	3,961	$	—	$	—	In market	2006-2024

Business assets	5	1,971		259		—		In market	2009-2023
Residential real estate	6	1,935		131		—		In market	2019-2022

Total	21	$	7,867	$	390	$	—

Nonaccrual loans decreased $1.2 million from December 31, 2025 to June 30, 2026 driven primarily by the movement of several loans to foreclosed assets held for resale and a pay-off. All nonaccrual loans are to borrowers located within ACNB’s Market Area and were originated by ACNB’s banking subsidiary or were part of a previous acquisition.

Assets Held for Sale

Assets HFS totaled $2.3 million at June 30, 2026 and was comprised of a building in Maryland that the Corporation intends to sell.

Deposits

Deposits were comprised of the following:


					Increase (Decrease)
(In thousands)	June 30, 2026		December 31, 2025		$		%
Noninterest-bearing demand deposits	$	600,711	$	553,855	$	46,856	8.5	%
Interest-bearing demand deposits	636,551		623,620		12,931		2.1
Money market	481,015		485,808		(4,793)		(1.0)
Savings	336,504		333,973		2,531		0.8
Total demand and savings	2,054,781		1,997,256		57,525		2.9
Time	480,895		452,929		27,966		6.2
Total deposits	$	2,535,676	$	2,450,185	$	85,491	3.5	%

ACNB relies on deposits as a primary source of funds for lending activities. The increase in deposits from December 31, 2025 to June 30, 2026 was driven primarily by the increase in noninterest-bearing demand deposits, time deposits and interest-bearing demand deposits. The increase in noninterest-bearing demand deposits was driven primarily by promotional incentives on commercial checking accounts. Time deposits included $75.0 million of brokered time deposits compared to $59.1 million at December 31, 2025, an increase of $15.9 million. The increase in interest-bearing demand deposits was driven primarily by an influx of seasonal deposits. Historically, deposit balances fluctuate reflecting different balance levels held by local companies, government units and school districts during different times of the year. Included in total deposits at June 30, 2026 were municipal deposits totaling $126.4 million, or 5.0%, of total deposits compared to $119.3 million, or 4.9%, of total deposits at December 31, 2025. The loan-to-deposit ratio was 94.57% at June 30, 2026 compared to 95.12% at December 31, 2025.

ACNB’s deposit pricing function employs a disciplined pricing approach based upon liquidity needs and alternative funding rates, but also strives to price deposits to be competitive with local competition, including local government investment trusts, credit unions and larger regional banks. Based on total Bank deposits outstanding, consumer and commercial constituted approximately 60% and 40%, respectively, of total Bank deposits as of June 30, 2026 compared to 61% and 39%, respectively, as of December 31, 2025. The ratio of uninsured and non-collateralized Bank deposits to total Bank deposits was 18.1% at June 30, 2026. As of June 30, 2026, cash on hand, the fair value of unencumbered investment securities and collateralized borrowing capacities at the FHLB and the Discount Window at the Bank were 329.7% of uninsured and non-collateralized Bank deposits. At June 30, 2026, deposits from the 20 largest unrelated depositors, excluding internal accounts, of the Bank totaled $170.3 million, or 6.7%, of total Bank deposits compared to $177.2 million, or 7.2%, of total Bank deposits at December 31, 2025.

Borrowings

Short-term borrowings are comprised of securities sold under agreements to repurchase, short-term borrowings from the FHLB and federal funds purchased. As of June 30, 2026, short-term borrowings were $108.3 million, an increase of $43.5 million compared to $64.7 million at December 31, 2025. Short-term FHLB advances were $90.0 million at June 30, 2026 compared to $45.0 million at December 31, 2025. Short-term FHLB borrowings are used for general balance sheet management, and the increase from prior periods was used to fund loan growth. Compared to December 31, 2025, securities sold under repurchase agreements balances decreased by $2.2 million, or 13.9%, due to normal changes in the cash flow position of ACNB’s commercial and local government customer base. Agreements to repurchase accounts are within the commercial and local government customer base and have attributes similar to core deposits. Investment securities are pledged in sufficient amounts to collateralize these agreements.

Long-term borrowings consist of longer-term advances from the FHLB, trust preferred subordinated debt and subordinated debt. Long-term borrowings totaled $214.9 million at June 30, 2026 compared to $255.4 million at December 31, 2025. During the six months ended June 30, 2026 the Company paid off $40.0 million of long-term FHLB borrowings. On March 12, 2026, the Company sold and issued $15.0 million in aggregate principal amount 5.875% fixed-to-floating rate subordinated notes due March 15, 2036. On March 31, 2026, the Company redeemed the $15.0 million in aggregate principal amount 4.00% fixed-to-floating rate subordinated notes that were issued on March 30, 2021. Additional borrowings will be used when necessary for a variety of risk management and funding purposes. Please refer to the Liquidity discussion below for more information on the Corporation’s ability to borrow.

Capital

ACNB’s capital management strategies have been developed to provide an appropriate risk-adjusted rate of return, in the opinion of management, to shareholders, while maintaining levels above its internal minimums and “well-capitalized” regulatory position in relationship to its risk exposure. Total stockholders’ equity was $423.3 million at June 30, 2026 compared to $420.0 million at December 31, 2025. The increase to stockholders’ equity was driven primarily by net income of $28.9 million partially offset by cash dividends paid to ACNB Corporation stockholders of $13.2 million, and common stock repurchases of $12.7 million.

ACNB Corporation has a Dividend Reinvestment and Stock Purchase Plan that provides registered holders of ACNB Corporation common stock with a convenient way to purchase additional shares of common stock by permitting participants in the plan to automatically reinvest cash dividends on all or a portion of the shares owned and to make quarterly voluntary cash payments under the terms of the plan. Participation in the plan is voluntary, and there are eligibility requirements to participate in the plan. During the six months ended June 30, 2026, 13,115 shares were issued under this plan with proceeds in the amount of $689 thousand.

Regulatory Capital

The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s Consolidated Financial Statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain OBS items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Minimum regulatory capital requirements established by Basel III rules require the Corporation and the Bank to:

•Meet a minimum Tier 1 leverage capital ratio of 4.0% of average assets;

•Meet a minimum Common Equity Tier 1 capital ratio of 4.5% of risk-weighted assets;

•Meet a minimum Tier 1 capital ratio of 6.0% of risk-weighted assets;

•Meet a minimum Total capital ratio of 8.0% of risk-weighted assets;

•Maintain a “capital conservation buffer” of 2.5% above the minimum risk-based capital requirements, which must be maintained to avoid restrictions on capital distributions and certain discretionary bonus; and,

•Comply with the definition of capital to improve the ability of regulatory capital instruments to absorb losses.

The capital ratios are as follows:


	Actual		For Capital Adequacy Purposes 1		To Be Well Capitalized Under Prompt Corrective Action Regulations 2
June 30, 2026
Tier 1 Leverage Capital (to average assets)
ACNB Corporation	11.55	%	4.00	%	N/A
ACNB Bank	11.25	%	4.00	%	5.00	%
Common Equity Tier 1 Capital (to risk-weighted assets)
ACNB Corporation	14.49	%	4.50	%	N/A
ACNB Bank	14.30	%	4.50	%	6.50	%
Tier 1 Capital (to risk-weighted assets)
ACNB Corporation	14.71	%	6.00	%	N/A
ACNB Bank	14.30	%	6.00	%	8.00	%
Total Capital (to risk-weighted assets)
ACNB Corporation	16.25	%	8.00	%	N/A
ACNB Bank	15.28	%	8.00	%	10.00	%













December 31, 2025
Tier 1 Leverage Capital (to average assets)
ACNB Corporation	11.40	%	4.00	%	N/A
ACNB Bank	10.92	%	4.00	%	5.00	%
Common Equity Tier 1 Capital (to risk-weighted assets)
ACNB Corporation	14.74	%	4.50	%	N/A
ACNB Bank	14.32	%	4.50	%	6.50	%
Tier 1 Capital (to risk-weighted assets)
ACNB Corporation	14.96	%	6.00	%	N/A
ACNB Bank	14.32	%	6.00	%	8.00	%
Total Capital (to risk-weighted assets)
ACNB Corporation	16.54	%	8.00	%	N/A
ACNB Bank	15.30	%	8.00	%	10.00	%

__________________________________________________________________

1 Ratios do not include capital conservation buffer.

2 N/A - Not applicable as “well capitalized” applies only to banks.

Liquidity

Effective liquidity management ensures the cash flow requirements of depositors and borrowers as well as the operating cash needs of ACNB are met. ACNB’s funds are available from a variety of sources, including assets that are readily convertible such as interest-bearing deposits with banks, maturities and repayments from the securities portfolio, scheduled repayments of loans receivable, the core deposit base, the ability to raise brokered deposits and the ability to borrow from the FHLB, Discount Window and unsecured Federal Funds line providers.

At June 30, 2026, ACNB’s banking subsidiary had borrowing capacity of approximately $1.30 billion from the FHLB, of which $1.01 billion was available. At June 30, 2026, ACNB’s banking subsidiary could borrow approximately $57.9 million from the Discount Window, of which the full amount was available. The underlying collateral at the Discount Window is made up of eligible loan collateral held in a joint-custody account under the Bank’s name.

ACNB’s banking subsidiary maintains several unsecured Federal Funds lines with correspondent banks. As of June 30, 2026, Federal Funds line capacity at the banking subsidiary was $192.0 million, of which the full amount was available. ACNB maintains a $5.0 million unsecured line of credit with a correspondent bank, all of which was available for borrowing as of June 30, 2026. The Corporation also executed a guaranty for a note related to a $1.5 million commercial line of credit from a local bank, with customary terms and conditions for such a line, for ACNB Insurance Services, the borrower and a wholly-owned subsidiary of ACNB Corporation. The commercial line of credit is for general working capital needs as they arise by ACNB Insurance Services.

Another source of liquidity is securities sold under repurchase agreements to customers of ACNB’s banking subsidiary totaling $13.9 million and $16.1 million at June 30, 2026 and December 31, 2025, respectively. These agreements vary in balance according to the cash flow needs of customers and competing accounts at other financial organizations.

The liquidity of the parent company also represents an important aspect of liquidity management. The parent company’s cash outflows consist principally of dividends to shareholders, common stock repurchases and corporate expenses. The main source of funding for the parent company is the dividends it receives from its subsidiaries. Federal and state banking regulations place certain legal restrictions and other practicable safety and soundness restrictions on dividends paid to the parent company from the subsidiary bank.

ACNB manages liquidity by monitoring projected cash inflows and outflows on a daily basis, and believes it has sufficient funding sources to maintain sufficient liquidity under varying degrees of business conditions for liquidity and capital resource requirements for all material short- and long-term cash requirements from known contractual and other obligations.

Off-Balance Sheet Arrangements

The Corporation is party to financial instruments with OBS risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and, to a lesser extent, standby letters of credit. At June 30, 2026, the Corporation had unfunded outstanding commitments to extend credit of $570.1 million and outstanding standby letters of credit of $25.4 million. Because these commitments generally have fixed expiration dates and many will expire without being drawn upon, the total commitment level does not necessarily represent future cash requirements.

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The primary objective of ACNB’s ALCO, with direct oversight from the Board, is to maximize net interest income within established policy parameters. This objective is accomplished through the management of the statement of condition composition and duration, market risk exposures arising from changing economic conditions and liquidity risk.

Market risk comprises exposure to interest rate risk, foreign currency exchange rate risk, commodity price risk and other relevant market rate or price risks. Specific to the banking industry, one of the greatest risk exposures is to that of changing market interest rates. The primary objective of monitoring ACNB’s interest rate sensitivity risk is to provide management the flexibility necessary to manage the statement of condition to minimize adverse changes in net interest income as a result of changes in the direction and level of interest rates. FOMC monetary policy, economic uncertainty, and fiscal policy changes have been significant factors affecting the task of managing interest rate sensitivity positions in recent years.

ACNB’s ALCO is a management committee responsible for monitoring and managing interest rate risk within approved policy limits utilizing earnings sensitivity simulation and economic value-at-risk models. These models are highly dependent on various assumptions, which change regularly as the statement of condition composition and market interest rates change. The key assumptions and strategies employed are analyzed, reviewed and documented at least annually by the ALCO as well as provided to the Board.

Interest Rate Risk

Interest rate risk is the exposure to fluctuations in the Bank’s future earnings (earnings at risk) and value (value at risk) resulting from changes in interest rates. This exposure results from differences between the amounts of interest-earning assets and interest-bearing liabilities that reprice within a specified time period as a result of scheduled maturities, scheduled and unscheduled repayments, the propensity of borrowers and depositors to react to changes in their economic interests and contractual loan interest rate changes.

Management attempts to manage the level of repricing and maturity mismatch through its asset/liability management processes so that fluctuations in net interest income are maintained within policy limits across a range of market conditions while satisfying liquidity and capital requirements. Management recognizes that a certain amount of interest rate risk is inherent, appropriate, and necessary to ensure the Bank’s profitability. Thus, the goal of the Bank’s interest rate risk management is to minimize the fluctuations of net interest income across all interest rate scenarios.

Management endeavors to control the exposure to changes in interest rates by understanding, reviewing and making decisions based on its risk position. The Bank primarily uses its investment securities portfolio, FHLB advances, derivatives and brokered deposits to manage its interest rate risk position. Additionally, pricing, promotion, and product development activities are directed in an effort to emphasize the loan and deposit repricing characteristics that best meet current interest rate risk objectives.

ACNB uses simulation analysis to assess earnings at risk and net present value analysis to assess value at risk. These methods allow management to regularly monitor both the direction and magnitude of its interest rate risk exposure. These analyses require numerous assumptions including, but are not limited to, changes in statement of condition mix, prepayment rates on loans and investment securities, cash flows and repricing of all financial instruments, changes in volumes and pricing, future shapes of the yield curve, relationship of market interest rates to each other (basis risk), credit spread and deposit sensitivity. Assumptions are based on management’s best estimates, but may not accurately reflect actual results under certain changes in interest rates due to the timing, magnitude, and frequency of rate changes and changes in market conditions and management strategies, among other factors. However, the analyses are useful in quantifying risk and providing a relative gauge of the Corporation’s interest rate risk position over time.

ACNB’s ALCO operates under management policies, approved by the Board, which define guidelines and limits on the level of risk. ALCO meets regularly and reviews its interest rate risk position and monitors various liquidity ratios to ensure a satisfactory liquidity position. By utilizing the analyses, management can determine changes that may need to be made to the asset and liability mixes to mitigate the change in net interest income under various interest rate scenarios. Management continually evaluates the condition of the economy, the pattern of market interest rates, and other economic data to inform the committee. Regulatory authorities also monitor the Corporation’s interest rate risk position along with other liquidity ratios.

Net Interest Income Sensitivity

Simulation analysis evaluates the effect of upward and downward changes in market interest rates on future net interest income. The analysis involves changing the interest rates used in determining net interest income over the next twelve months. The resulting percentage change in net interest income in various rate scenarios is an indication of Corporation’s short-term interest rate risk. The analysis assumes recent pricing trends in new loan and deposit volumes will continue while balances remain constant. Additional assumptions are applied to modify pricing under the various rate scenarios.

The simulation analysis results are presented in the table below. The Bank is currently modestly asset-sensitive as interest-earning assets are expected to reprice faster than interest-bearing liabilities.


12-Month Earnings at Risk Ramps
Change in Market Interest Rates (bps)	% Change in Net Interest Income
	June 30, 2026		December 31, 2025		Policy Limits
(200)	(2.4)	%	(0.9)	%	(10.0)	%
(100)	(1.1)	%	(0.6)	%	(5.0)	%
100	1.4	%	(0.3)	%	(5.0)	%
200	2.7	%	(1.1)	%	(10.0)	%

Economic Value

Net present value analysis provides information on the risk inherent in the statement of condition that might not be considered in the simulation analysis due to the short time horizon used. The net present value of the statement of condition incorporates the discounted present value of expected asset cash flows minus the discounted present value of expected liability cash flows.

The analysis involves changing the interest rates used in determining the expected cash flows and in discounting the cash flows. The resulting percentage change in net present value in various rate scenarios is an indication of the longer-term repricing risk and options embedded in the statement of condition. The results at June 30, 2026 and December 31, 2025 are reflected in the table below.

Funding cost and repricing speed will continue to be a factor in the results of the model. The behavior of the business and retail clients also varies across the rate scenarios, which is reflected in the results. To improve comparability across periods, the Bank strives to follow best practices related to the assumption setting and maintains the size and mix of the period end statement of condition; thus, the results do not reflect actions management may take through the normal course of business that would impact results.


Value at Risk
Change in Market Interest Rates (bps)	% Change in Market Value
	June 30, 2026		December 31, 2025		Policy Limits
(200)	(20.4)	%	(11.0)	%	(35.0)%
(100)	(7.7)	%	(3.3)	%	(20.0)%
100	5.2	%	(0.1)	%	(20.0)%
200	7.7	%	(2.8)	%	(35.0)%

ITEM 4 – CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

As of the end of the period covered by this report, the Corporation carried out an evaluation, under the supervision and with the participation of its management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures are effective in timely alerting them to material information relating to the Corporation (including its consolidated subsidiaries) required to be included in periodic SEC filings.

Disclosure controls and procedures are Corporation controls and other procedures that are designed to ensure that information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

There were no changes in the Corporation’s internal control over financial reporting during the three months ended June 30, 2026, that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.

PART II – OTHER INFORMATION

ACNB CORPORATION

ITEM 1 – LEGAL PROCEEDINGS

As of June 30, 2026, there were no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which ACNB or its subsidiaries are a party or by which any of their assets are the subject, which could have a material adverse effect on ACNB or its subsidiaries or their results of operations. In addition, no material proceedings are pending or are known to be threatened or contemplated against the Corporation or its subsidiaries by governmental authorities.

ITEM 1A – RISK FACTORS

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A. Risk Factors of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following is a summary of the Corporation’s purchases of common stock during the second quarter of 2026:


	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans	Maximum number of shares that may yet be purchased under the plan
April 1 - April 30, 2026	126,146	$	50.16	317,047	306,953
May 1 - May 31, 2026	45,343	$	52.22	362,390	261,610
June 1 - June 30, 2026	7,918	$	52.67	370,308	253,692

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES – NOTHING TO REPORT.

ITEM 4 – MINE SAFETY DISCLOSURES – NOT APPLICABLE.

ITEM 5 – OTHER INFORMATION

During the three months ended June 30, 2026, no director or officer of the Corporation adopted or terminated a “Rule 10b5-1 trading agreement” or a “non-Rule 10b5-1 trading agreement” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6 – EXHIBITS

The following exhibits are included in this report:


Exhibit 2.1						Agreement and Plan of Reorganization by and among ACNB Corporation, ACNB South Acquisition Subsidiary, LLC, ACNB Bank, New Windsor Bancorp, Inc., and New Windsor State Bank dated as of November 21, 2016, as amended. (Incorporated by reference to Annex A of the Registrant’s Registration Statement No. 333-215914 on Form S-4, filed with the Commission on February 6, 2017.) Schedules are omitted; the Registrant agrees to furnish copies of Schedules to the Securities and Exchange Commission upon request.

Exhibit 2.2						Amendment No. 2 to Agreement and Plan of Reorganization by and among ACNB Corporation, ACNB South Acquisition Subsidiary, LLC, ACNB Bank, New Windsor Bancorp, Inc., and New Windsor State Bank dated as of April 18, 2017. (Incorporated by reference to Exhibit 2.2 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, filed with the Commission on August 4, 2017.)

Exhibit 2.3						Agreement and Plan of Reorganization by and among ACNB Corporation, ACNB South Acquisition Subsidiary, LLC, ACNB Bank, Frederick County Bancorp, Inc. and Frederick County Bank dated as of July 1, 2019. (Incorporated by reference to Annex A of the Registrant’s Registration Statement No. 333-233791 on Form S-4, filed with the Commission on September 16, 2019.) Schedules are omitted; the Registrant agrees to furnish copies of Schedules to the Securities and Exchange Commission upon request.

Exhibit 2.4						Agreement and Plan of Reorganization by and among ACNB Corporation, ACNB South Acquisition Subsidiary, LLC, ACNB Bank, Traditions Bancorp, Inc. and Traditions Bank dated as of July 23, 2024. (Incorporated by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K, filed with the Commission on July 24, 2024.) Schedules are omitted; the Registrant agrees to furnish copies of Schedules to the Securities and Exchange Commission upon request.

Exhibit 3(i)						Amended and Restated Articles of Incorporation of ACNB Corporation. (Incorporated by reference to Exhibit 3.1 of the Registrant’s Registration Statement No. 333-295687 on Form S-8, filed with the Commission on May 8, 2026.)

Exhibit 3(ii)						Amended and Restated Bylaws of ACNB Corporation. (Incorporated by reference to Exhibit 99.1 of the Registrant’s Current Report on Form 8-K, filed with the Commission on February 21, 2024.)

Exhibit 4.1						Form of ACNB Corporation 5.875% Fixed-to-Floating Rate Subordinated Note due March 15, 2036. (Incorporated by reference to Exhibit 4.1 of the Registrant’s Current Report on Form 8-K, filed with the Commission on March 12, 2026.)

Exhibit 10.1						ACNB Bank Amended and Restated Executive Supplemental Life Insurance Plan — Applicable to James P. Helt, Douglas A. Seibel and Laurie A. Laub. (Incorporated by reference to Exhibit 10.3 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Commission on March 6, 2015.)

Exhibit 10.2						ACNB Bank Amended and Restated Director Supplemental Life Insurance Plan — Applicable to Kimberly S. Chaney, Frank Elsner, III, Todd L. Herring, Scott L. Kelley, James J. Lott, Donna M. Newell, Daniel W. Potts, D. Arthur Seibel, Jr. and Alan J. Stock. (Incorporated by reference to Exhibit 10.4 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Commission on March 6, 2015.)

Exhibit 10.3						ACNB Bank Amended and Restated Director Deferred Fee Plan — Applicable to Kimberly S. Chaney, Frank Elsner, III, Todd L. Herring, Scott L. Kelley, James J. Lott, Donna M. Newell, D. Arthur Seibel, Jr. and Alan J. Stock. (Incorporated by reference to Exhibit 99.1 of the Registrant’s Current Report on Form 8-K, filed with the Commission on January 6, 2012.)

Exhibit 10.4						ACNB Bank Salary Savings Plan. (Incorporated by reference to Exhibit 10.4 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the Commission on November 4, 2022.)

Exhibit 10.5						Group Pension Plan for Employees of ACNB Bank. (Incorporated by reference to Exhibit 10.5 of the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the Commission on November 4, 2022.)

Exhibit 10.6						ACNB Corporation 2009 Restricted Stock Plan. (Incorporated by reference to Appendix C of the Registrant’s Definitive Proxy Statement on Schedule 14A, filed with the Commission on March 25, 2009.)



Exhibit 10.7						Salary Continuation Agreement by and between ACNB Bank and James P. Helt dated as of March 28, 2012. (Incorporated by reference to Exhibit 10.20 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Commission on March 7, 2014.)

Exhibit 10.8						ACNB Bank Variable Compensation Plan effective January 1, 2014, as amended. (Incorporated by reference to Exhibit 10.16 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Commission on March 14, 2022.)

Exhibit 10.9						Amended and Restated Employment Agreement by and among ACNB Corporation, ACNB Bank and James P. Helt dated as of October 5, 2022. (Incorporated by reference to Exhibit 99.1 of the Registrant’s Current Report on Form 8-K, filed with the Commission on October 7, 2022.)

Exhibit 10.10						ACNB Corporation 2018 Omnibus Stock Incentive Plan. (Incorporated by reference to Exhibit A of the Registrant’s Definitive Proxy Statement on Schedule 14A, filed with the Commission on March 27, 2018.)

Exhibit 10.11						Form of Exhibit B Split Dollar Policy Endorsement to ACNB Bank Amended and Restated Director Supplemental Life Insurance Plan dated November 27, 2018. (Incorporated by reference to Exhibit 99.4 of the Registrant’s Current Report on Form 8-K, filed with the Commission on November 28, 2018.)

Exhibit 10.12						Salary Continuation Agreement by and between ACNB Bank and James P. Helt dated as of November 27, 2018. (Incorporated by reference to Exhibit 99.1 of the Registrant’s Current Report on Form 8-K, filed with the Commission on November 28, 2018.)

Exhibit 10.13						Amended and Restated Employment Agreement by and among ACNB Corporation, ACNB Bank and Jason H. Weber dated as of October 5, 2022. (Incorporated by reference to Exhibit 99.2 of the Registrant’s Current Report on Form 8-K, filed with the Commission on October 7, 2022.)

Exhibit 10.14						Salary Continuation Agreement by and between ACNB Bank and James P. Helt dated as of October 5, 2022. (Incorporated by reference to Exhibit 99.3 of the Registrant’s Current Report on Form 8-K, filed with the Commission on October 7, 2022.)

Exhibit 10.15						Salary Continuation Agreement by and between ACNB Bank and Jason H. Weber dated as of October 5, 2022. (Incorporated by reference to Exhibit 99.4 of the Registrant’s Current Report on Form 8-K, filed with the Commission on October 7, 2022.)

Exhibit 10.16						First Amendment to ACNB Bank Salary Continuation Agreement by and between ACNB Bank and James P. Helt dated as of October 5, 2022. (Incorporated by reference to Exhibit 99.5 of the Registrant’s Current Report on Form 8-K, filed with the Commission on October 7, 2022.)

Exhibit 10.17						First Amendment to ACNB Bank Salary Continuation Agreement by and between ACNB Bank and Jason H. Weber dated as of October 5, 2022. (Incorporated by reference to Exhibit 99.7 of the Registrant’s Current Report on Form 8-K, filed with the Commission on October 7, 2022.)

Exhibit 10.18						Salary Continuation Agreement by and between ACNB Bank and Jason H. Weber dated as of January 31, 2022. (Incorporated by reference to Exhibit 99.8 of the Registrant’s Current Report on Form 8-K, filed with the Commission on October 7, 2022.)

Exhibit 10.19						Amended and Restated Employment Agreement between ACNB Bank and Douglas A. Seibel dated as of October 20, 2022. (Incorporated by reference to Exhibit 10.31 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Commission on March 3, 2023.)

Exhibit 10.20						Supplemental Executive Retirement Plan by and between ACNB Bank and Douglas A. Seibel dated as of November 27, 2018. (Incorporated by reference to Exhibit 99.2 of the Registrant’s Current Report on Form 8-K, filed with the Commission on November 28, 2018.)

Exhibit 10.21						Supplemental Executive Retirement Plan by and between ACNB Bank and Douglas A. Seibel dated as of October 20, 2022. (Incorporated by reference to Exhibit 10.33 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Commission on March 3, 2023.)

Exhibit 10.22						Amended and Restated Employment Agreement between ACNB Bank and Laurie A. Laub dated as of October 6, 2022. (Incorporated by reference to Exhibit 10.31 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Commission on March 14, 2024.)


Exhibit 10.23						First Amendment to ACNB Bank Salary Continuation Agreement by and between ACNB Bank and Laurie A. Laub dated as of October 6, 2022. (Incorporated by reference to Exhibit 10.32 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Commission on March 14, 2024.)

Exhibit 10.24						Salary Continuation Agreement by and between ACNB Bank and Laurie A. Laub dated as of October 6, 2022. (Incorporated by reference to Exhibit 10.33 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Commission on March 14, 2024.)

Exhibit 10.25						First Amendment to ACNB Bank Amended and Restated Executive Supplemental Life Insurance Plan dated December 31, 2014. (Incorporated by reference to Exhibit 99.2 of the Registrant’s Current Report on Form 8-K, filed with the Commission on November 3, 2023.)

Exhibit 10.26						ACNB Bank 2023 Executive Supplemental Life Insurance Plan dated November 1, 2023 and Participant Election Form. (Incorporated by reference to Exhibit 99.3 of the Registrant’s Current Report on Form 8-K, filed with the Commission on November 3, 2023.)

Exhibit 10.27						Form of ACNB Bank Variable Compensation Plan Restricted Stock Agreement for Employees dated as of March 15, 2024. (Incorporated by reference to Exhibit 99.3 of the Registrant’s Current Report on Form 8-K, filed with the Commission on March 20, 2024.)

Exhibit 10.28						Employment Agreement by and between ACNB Corporation, ACNB Bank and Brett D. Fulk dated as of September 6, 2022. (Incorporated by reference to Exhibit 10.32 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Commission on March 14, 2025.)

Exhibit 10.29						Salary Continuation Agreement by and between ACNB Bank and Brett D. Fulk dated as of September 6, 2022. (Incorporated by reference to Exhibit 10.33 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Commission on March 14, 2025.)

Exhibit 10.30						Deferred Compensation Agreement by and between ACNB Bank and Brett D. Fulk dated as of September 6, 2022. (Incorporated by reference to Exhibit 10.34 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Commission on March 14, 2025.)

Exhibit 10.31						Form of ACNB Bank Variable Compensation Plan Restricted Stock Agreement for Employees dated as of March 15, 2024. (Incorporated by reference to Exhibit 99.3 of the Registrant’s Current Report on Form 8-K, filed with the Commission on March 20, 2024.)

Exhibit 10.32						Form of ACNB Bank Variable Compensation Plan Restricted Stock Agreement for Employees dated as of March 14, 2025. (Incorporated by reference to Exhibit 99.3 of the Registrant’s Current Report on Form 8-K, filed with the Commission on March 19, 2025.)

Exhibit 10.33						First Amendment to Amended and Restated Employment Agreement by and among ACNB Corporation, ACNB Bank and Jason H. Weber dated as of February 19, 2026. (Incorporated by reference to Exhibit 99.1 of the Registrant’s Current Report on Form 8-K, filed with the Commission on February 20, 2026.)

Exhibit 10.34						First Amendment to Amended and Restated Employment Agreement by and among ACNB Corporation, ACNB Bank and Brett D. Fulk dated as of February 19, 2026. (Incorporated by reference to Exhibit 99.2 of the Registrant’s Current Report on Form 8-K, filed with the Commission on February 20, 2026.)

Exhibit 10.35						Form of Subordinated Note Purchase Agreement 5.875% Fixed-to-Floating Rate Subordinated Note due March 15, 2036. (Incorporated by reference to Exhibit 10.1 of the Registrant’s Current Report on Form 8-K, filed with the Commission on March 12, 2026.)

Exhibit 10.36						Form of ACNB Bank Variable Compensation Plan Restricted Stock Agreement for Employees dated as of March 13, 2026. (Incorporated by reference to Exhibit 99.3 of the Registrant’s Current Report on Form 8-K, filed with the Commission on March 18, 2026.)

Exhibit 31.1						Chief Executive Officer Certification of Quarterly Report on Form 10-Q.

Exhibit 31.2						Chief Financial Officer Certification of Quarterly Report on Form 10-Q.

Exhibit 32.1						Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



Exhibit 32.2						Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


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Exhibit 101.SCH						XBRL Taxonomy Extension Schema.

Exhibit 101.CAL						XBRL Taxonomy Extension Calculation Linkbase.

Exhibit 101.DEF						XBRL Taxonomy Extension Definition Linkbase.

Exhibit 104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		ACNB CORPORATION (Registrant)

Date:	August 6, 2026	/s/ James P. Helt
		James P. Helt
		President & Chief Executive Officer

		/s/ Jason H. Weber
		Jason H. Weber
		Executive Vice President/Treasurer &
		Chief Financial Officer (Principal Financial Officer)