Gettysburg-based ACNB Corp., the financial holding company for ACNB Bank and ACNB Insurance Services Inc., announced record financial results for 2022.
ACNB posted net income of $35.752 million, an increase of $7.918 million, or 28.45%, compared with 2021. This year-over-year increase was primarily driven by increases in net interest income of $12.181 million and commissions from insurance sales of $2.156 million.
The corporation reported net income of $10.199 million for the three months ended Dec. 31, 2022, an increase of 126.90% compared with the fourth quarter of 2021.
“We, at ACNB Corp., are extremely pleased to report another year of record earnings for 2022 totaling more than $35 million,” James P. Helt, ACNB president and CEO, said in a release. “This corporate achievement was not anticipated at the start of the year, but neither were the economic conditions that evolved during the year. In response to inflationary pressures, the unprecedented actions of the Federal Reserve resulted in seven interest rate hikes beginning in March of 2022 for a fed funds target rate range of 4.25% to 4.50% at the end of the year.”
The steep interest rate changes during the year pushed the fed funds rate to its highest point since December 2007, he noted. “These interest rate increases were a major contributor to ACNB Corp.’s 2022 earnings performance as assets repriced more quickly than liabilities, which coupled with asset growth resulted in strong net interest income performance.”
“Despite these unusual and unprecedented economic times,” Helt said, the corporation completed key strategic initiatives planned for 2022, including the acquisition by ACNB Insurance Services Inc. of the business and assets of Hockley & O’Donnell Insurance Agency in Gettysburg in February and the opening of the new Upper Adams Office in Biglerville in October as ACNB Bank continued its plans for optimization of the community banking network.
Paula Wolf is a freelance writer