Merger-related expenses and rising personnel costs took a bite out of ACNB Corp.’s profits in the first half of 2017.
The Gettysburg-based holding company for ACNB Bank and Russell Insurance Group reported net income of about $2.72 million for the second quarter, a roughly 8.7 percent decrease from second-quarter 2016. Net income was also down for the first six months of 2017, by about 3.1 percent from the first half of last year.
Bank leaders attribute the drop mostly to ACNB’s recent acquisition of New Windsor Bancorp, the holding company for a seven-branch bank in northern Maryland. ACNB, like most banks in the midstate, also shelled out more this year for employee salaries and benefits.
Those costs contributed to a more than $800,000 increase in non-interest expenses for the second quarter as compared to the same period a year ago.
Bank officials nonetheless remain optimistic about their bottom line. Net interest income was up 7 percent in the first half of the year when compared to the first six months of 2016, buoyed in part by 12 percent growth in loan volume. The bank’s net interest margin also crept up slightly, from 3.37 percent in the second quarter of 2016 to 3.39 percent for Q2 2017.
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