Donegal takes loss in first quarter; ACNB flat
Two holding companies with interests in the insurance and banking industries both issued first quarter earnings reports.
Donegal Group Inc. took a big hit in the first quarter because of harsh winter weather, according to Donald H. Nikolaus, its president and CEO.
The insurance holding company reported net income loss of $634,414, or $0.02 per diluted Class A share, for the first quarter of 2014. That's a stark contrast to the first quarter of 2013, when the company reported net income of $6.5 million, or $0.25 per diluted share.
The net loss on the company's Class B stock also was $0.02.
The company's one analyst polled at Yahoo Finance had predicted a $0.12 gain on the Class A stock — a 14-cent miss.
The company reported in a news release its customers claimed $15.3 million in weather-related losses, a company record for winter.
Donegal did however report a 9.1 percent increase in net premiums written.
Donegal Group Inc., based in Lancaster County, is the parent company of Donegal Mutual and other Mid-Atlantic insurance companies. The company also owns 48.2 percent of Donegal Financial Services Corp., which owns Mount Joy-based Union Community Bank.
The company trades its Class A stock on the Nasdaq at DGICA and its Class B at DGICB.
Gettysburg-based ACNB Corp. saw a 2 percent gain in net income, though its per share earnings were flat compared with last year.
The holding company for ACNB Bank of Gettysburg and Russell Insurance Group Inc. in Westminster, Md., pegged its net income at $2.47 million for the first quarter this year, compared with $2.42 million in 2013.
Per share earnings were at $0.41 for each quarter.
The company reported that total deposits were down 2 percent to $816 million compared with the first quarter of 2013, but total loans were up 4 percent to $733 million.
ACNB Bank has 19 branches throughout the midstate, including three in York County and one in Cumberland County. It plans to open a full-service branch in Chambersburg in the summer.
ACNB Corp. trades on the Nasdaq at the ticker symbol ACNB.