GETTYSBURG, Pa. - ACNB Corporation (NASDAQ: ACNB), the parent company of ACNB Bank and ACNB Insurance Services, Inc., has declared a quarterly cash dividend of $0.32 per share, to be paid on December 13, 2024. This represents a 6.7% increase from the $0.30 per share paid in the same quarter of the previous year. Shareholders on record as of November 29, 2024, will be eligible for the dividend.
The increased dividend will result in an estimated total payout of approximately $2.7 million to shareholders for the fourth quarter of 2024. ACNB Corporation, with a heritage dating back to 1857, has a current financial holding of $2.4 billion and operates through 27 community banking offices and two loan offices across various counties in Pennsylvania and Maryland. The company also provides wealth management services, including trust and retail brokerage, and its insurance subsidiary holds licenses in 46 states.
This financial move comes amidst a landscape of economic considerations such as inflation, regulatory changes, and competitive factors. The corporation has cautioned that forward-looking statements in the press release, including projections and strategic plans, are subject to risks and uncertainties that could cause actual results to differ materially.
The announcement reflects the corporation's performance and strategic decisions by the Board of Directors. It is based on the press release statement issued by ACNB Corporation and does not necessarily represent broader market trends or industry impacts.
In other recent news, ACNB Corporation has announced a definitive merger agreement to acquire Traditions Bancorp, Inc., a move unanimously approved by both companies' boards of directors. The all-stock deal, valued at approximately $73.5 million, will result in a combined entity with pro forma total assets of $3.3 billion, total deposits of $2.6 billion, and total gross loans of $2.4 billion. The merger is expected to close in the first quarter of 2025, subject to shareholder and regulatory approvals.
In addition to this significant merger, ACNB Corporation has raised its quarterly dividend to $0.32 per share, marking a 14.3% increase from the previous year. This decision is a testament to ACNB Corporation's continued financial growth and commitment to delivering shareholder value. The company also reported a core return on average assets (ROAA) of approximately 1.4% over the last twelve months.
Analyst firm Piper Sandler has maintained a Neutral rating on ACNB, while adjusting its outlook on ACNB shares, reducing the price target from $40.00 to $37.00. This adjustment came after ACNB's first-quarter earnings report for 2024, which showed earnings per share (EPS) of $0.80. Finally, ACNB Corporation announced the election of Alexandra Chiaruttini to its Board of Directors, expanding the Board to 11 members. These are the latest developments for ACNB Corporation.
InvestingPro Insights
ACNB Corporation's recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro Tips, ACNB has raised its dividend for 6 consecutive years and has maintained dividend payments for an impressive 36 consecutive years. This consistency in dividend growth is particularly noteworthy given the company's current dividend yield of 3.0%.
The company's financial health appears robust, with a price-to-earnings (P/E) ratio of 11.8, suggesting a potentially undervalued stock relative to earnings. This valuation metric, combined with the company's profitability over the last twelve months, indicates a solid financial foundation supporting the dividend increase.
However, investors should note that ACNB's revenue growth has been mixed. While quarterly revenue growth for Q2 2024 was positive at 8.13%, the last twelve months saw a decline of 6.3%. This fluctuation in revenue performance may explain why net income is expected to drop this year, as highlighted in another InvestingPro Tip.
Despite these challenges, ACNB's stock has shown strong momentum, with a significant price uptick of 35.28% over the last six months. This positive market sentiment, coupled with the company's commitment to dividend growth, may be encouraging signs for shareholders.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for ACNB Corporation, providing deeper insights into the company's financial health and market position.
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