| Investment Securities |
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 | |
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. 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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