 2020 Highlights Effective January 11, 2020, ACNB Corporation acquired Frederick County Bancorp, Inc. FCBI and its wholly-owned subsidiary, Frederick County Bank, headquartered in Frederick, MD, with systems conversions completed in March 2020. This transaction resulted in the addition of 443,425,000 in assets, 329,312,000 in loans, 374,058,000 in deposits, 22,528,000 in goodwill, and 57,280,000 in equity to ACNB Corporations balance sheet. ACNB Corporation responded to, and continues to address, the impact of the COVID-19 pandemic with a focused and responsive plan to meet the needs of the Corporations customers and communities, as well as to maintain a high level of operational performance while protecting valued staff members. Net income for the three months ended June 30, 2020, totaled 5,797,000, which is a decrease of 669,000 or 10.4 over comparable period results for the three months ended June 30, 2019. Net income for the six months ended June 30, 2020, totaled 4,574,000, with basic earnings per share of 0.53. This reflects a decrease of 7,756,000 or 62.9 over comparable period results for the six months ended June 30, 2019, and is due primarily to one-time merger-related expenses of 5,965,000 and a higher provision for loan losses of 6,550,000 as a result of a previously-reported, large unanticipated charge-off of one loan relationship during the first quarter of 2020 and the potential economic impact of the Coronavirus Disease 2019 COVID-19 pandemic. Without the nonrecurring expenses related to the acquisition of FCBI, as well as the corresponding tax impact at the marginal tax rate, net income non-GAAP would have been 9,147,000, or 1.07 basic earnings per share, for the six months ended June 30, 2020. Net interest income for the six months ended June 30, 2020, totaled 35,800,000, which is an increase of 6,165,000 or 20.8 over comparable period results for the six months ended June 30, 2019, and an indication of the strength of ACNB Corporations community banking model including strategic inorganic growth. Total loans outstanding were 1,733,563,000 at June 30, 2020, as compared to 1,279,264,000 at June 30, 2019, for an increase of 35.5 including loans acquired from FCBI. Total deposits were 2,032,801,000 at June 30, 2020, as compared to 1,377,277,000 at June 30, 2019, for an increase of 47.6 including deposits acquired from FCBI. Quarterly cash dividends paid to ACNB Corporation shareholders in the first half of 2020 totaled 4,335,000 or 0.50 per share. It was recently announced the cash dividend declared for the third quarter of 2020 is 0.25 per share. GETTYSBURG, Pa., July 29, 2020 GLOBE NEWSWIRE -- ACNB Corporation NASDAQ: ACNB, financial holding company for ACNB Bank and Russell Insurance Group, Inc., announced financial results for the three months ended June 30, 2020, with net income of 5,797,000. Compared to net income of 6,466,000 for the three months ended June 30, 2019, this is a decrease of 669,000 or 10.4 over comparable period results, primarily due to higher loan loss provision expense in the second quarter of 2020 as a result of COVID-19. Basic earnings per share was 0.67 and 0.92 for the three months ended June 30, 2020 and 2019, respectively, which is a decrease of 0.25 or 27.2. The Corporation reported net income of 4,574,000 for the six months ended June 30, 2020. Compared to net income of 12,330,000 for the six months ended June 30, 2019, this is a decrease of 7,756,000 or 62.9 over comparable period results. Basic earnings per share was 0.53 and 1.75 for the six months ended June 30, 2020 and 2019, respectively, which is a decrease of 1.22 or 69.7. These results are primarily attributable to one-time merger-related expenses of 5,965,000 and a higher provision for loan losses of 6,550,000 as a result of a previously-reported, large unanticipated charge-off of one loan relationship during the first quarter of 2020 and the potential economic impact of the COVID-19 pandemic. Without the nonrecurring expenses related to the acquisition of FCBI, as well as the corresponding tax impact at the marginal tax rate, net income non-GAAP would have been 9,147,000, or 1.07 basic earnings per share, for the six months ended June 30, 2020. As the year of 2020 opened, ACNB Corporation was well situated with the planned closing of the acquisition of Frederick County Bancorp, Inc. and its wholly-owned subsidiary, Frederick County Bank, in January and the reporting of record financial results for 2019---both outcomes of the Corporations continued focus on strategic initiatives to enhance shareholder value. Additionally, the Corporations commitment to sound operating principles and its conservative culture fortified the organization when the COVID-19 pandemic dramatically impacted how we conduct our business on a daily basis, said James P. Helt, ACNB Corporation President Chief Executive Officer. In response, we have taken a deliberate and measured approach in protecting our most valuable asset, our staff members working in offices and remotely to fulfill customer needs despite the pandemic. Equally as important, our efforts are ongoing to protect as well as support customers during these unprecedented times, whether through the Paycheck Protection Program loan and forgiveness process or via direct loan modifications and other account accommodations. Mr. Helt continued, As 2020 continues to unfold, the long-term economic impact of this health crisis is still unknown with high unemployment rates and businesses operating with limited capacity. This environment is not the one we anticipated for 2020. However, ACNB Corporation has proven its resiliency time and again over its long history due to the adherence to fundamentals such as capital preservation, credit quality, and expense management. ACNB Corporations banking subsidiary, ACNB Bank, remains a well-capitalized financial institution. And, we are solidly positioned to leverage the recent acquisition in Frederick County, Maryland, for future growth and to further enhance long-term ACNB Corporation shareholder value. Revenues Total revenues, defined as net interest income plus noninterest income, for the first two quarters of 2020 were 44,859,000, or a 16.8 increase over total revenues of 38,395,000 for the first two quarters of 2019. Total interest income for the first half of 2020 was 42,494,000, or an increase of 23.7, as compared to total interest income of 34,340,000 for the first half of 2019. Loans Total loans outstanding were 1,733,563,000 at June 30, 2020. Loans outstanding increased by 460,962,000, or 36.2, from December 31, 2019, and by 454,299,000, or 35.5, from June 30, 2019 to June 30, 2020, including 329,312,000 in loans acquired through FCBI. Loan growth is largely attributable to the FCBI acquisition, net of selling new residential mortgages in the secondary market and early payoffs of loans, as well as active participation in the Small Business Administrations Paycheck Protection Program PPP. Year over year, organic loan growth is primarily in the commercial loan portfolio with a focus on asset quality and disciplined underwriting standards despite the intense competition in the Corporations market areas. As a result of the previously-reported, large unanticipated charge-off of one loan relationship and increased risk from COVID-19, combined with normal and anticipated credit losses in the portfolio, the provision for loan losses for the first half of 2020 was 6,550,000. Deposits Total deposits were 2,032,801,000 at June 30, 2020. Deposits increased by 620,541,000, or 43.9, from December 31, 2019, and by 655,524,000, or 47.6, from June 30, 2019 to June 30, 2020, including 374,058,000 in deposits acquired through FCBI. Year over year, organic deposit growth is largely attributable to PPP proceeds deposited to customer accounts and increased balances in a broad base of accounts from a lack of economic activity due to COVID-19. Net Interest Income and MarginNet interest income rose by 6,165,000 to 35,800,000 for the first six months of 2020, which is an increase of 20.8 compared to the first six months of 2019. The net interest margin for the first half of 2020 was 3.53, compared to 3.91 for the same period of 2019. Both net interest income and the net interest margin were impacted by lower market yields in the first half of 2020. The lower market yields negatively affected the net interest margin as new loans replaced paydowns on existing loans and variable rate loans reset to new current rates. Noninterest IncomeNoninterest income for the first six months of 2020 was 9,059,000, an increase of 299,000, or 3.4, from the first six months of 2019. The increase includes revenue from wealth management activities, which grew 11.2 from the first half of 2019 to the first half of 2020. Noninterest ExpenseNoninterest expense for the first six months of 2020 was 32,912,000, an increase of 9,966,000, or 43.4, from the same period in 2019. Nonrecurring acquisition and integration expenses related to the acquisition of FCBI were 5,965,000 for the first six months of 2020. Salaries and employee benefits expense increased by 2,952,000 from the first half of 2019, which is primarily attributable to higher staffing levels from the FCBI acquisition and additional staff hired to support revenue generation across all business lines. Dividends Quarterly cash dividends paid to ACNB Corporation shareholders in the first half of 2020 totaled 4,335,000, or 0.50 per share. In the first half of 2019, ACNB Corporation paid 0.48 per share for total dividends paid to shareholders in the amount of 3,383,000. 