ACNB CORPACNB
ACNB CORP Debt Disclosure
BORROWINGS
Short-term borrowings and weighted-average interest rates at December 31 are as follows:
| 2024 | 2023 | ||||||||||||||||||||||
| (Dollars in thousands) | Amount | Rate | Amount | Rate | |||||||||||||||||||
| Securities sold under repurchase agreements | $ | 15,826 | 0.23 | % | $ | 26,882 | 0.15 | % | |||||||||||||||
| FHLB advance | — | — | 30,000 | 5.64 | |||||||||||||||||||
| Total | $ | 15,826 | 0.23 | % | $ | 56,882 | 3.05 | % | |||||||||||||||
Borrowings with original maturities of one year or less are classified as short-term. Securities sold under repurchase agreements are comprised of customer repurchase agreements, which are sweep accounts with next-day maturities utilized by larger commercial customers to earn interest on their funds. Securities are pledged to these customers in an amount at least equal to the outstanding balance. Under an agreement with the FHLB, the Bank has short-term borrowing capacity included within its maximum borrowing capacity. All FHLB advances are collateralized by a security agreement covering qualifying loans, which consist of 1-4 family mortgage loans and other real estate secured loans. In addition, all FHLB advances are secured by the FHLB capital stock owned by the Bank having a par value of $10.6 million at December 31, 2024. The Bank also has unsecured lines of credit that total $192.0 million with correspondent banks for overnight federal funds borrowings. There were no advances on these lines at December 31, 2024 and 2023. The Corporation maintains a $5.0 million unsecured line of credit with a correspondent bank and the Corporation guarantees a note related to a $1.5 million commercial line of credit with a correspondent bank for ACNB Insurance Services. There were no advances on these lines at December 31, 2024 and 2023.
A summary of long-term borrowings and their weighted-average contractual rates as of December 31 is as follows:
| 2024 | 2023 | ||||||||||||||||||||||
| (Dollars in thousands) | Amount | Rate | Amount | Rate | |||||||||||||||||||
| FHLB fixed-rate advances maturing: | |||||||||||||||||||||||
| 2026 | $ | 80,000 | 4.71 | % | $ | 80,000 | 4.71 | % | |||||||||||||||
| 2027 | 90,000 | 4.55 | 60,000 | 4.64 | |||||||||||||||||||
| 2028 | 35,000 | 4.23 | 35,000 | 4.23 | |||||||||||||||||||
| 2029 | 30,000 | 4.25 | — | — | |||||||||||||||||||
Trust preferred subordinated debt 1 | 5,333 | 6.25 | 5,292 | 7.28 | |||||||||||||||||||
| Subordinated debt | 15,000 | 4.00 | 15,000 | 4.00 | |||||||||||||||||||
| $ | 255,333 | 4.52 | % | $ | 195,292 | 4.62 | % | ||||||||||||||||
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1 Net of purchase accounting fair value mark.
The long-term FHLB advances are collateralized by the assets defined in the security agreement, which included loans totaling $1.33 billion, and FHLB capital stock described previously. Based on this collateral and ACNB’s holding of FHLB stock, ACNB is eligible to borrow up to $926.5 million, of which $690.4 million was available at December 31, 2024.
The trust preferred subordinated debt is comprised of debt securities issued by FCBI in December 2006 and assumed by ACNB Corporation through the acquisition of FCBI. FCBI completed the private placement of an aggregate of $6.0 million of trust preferred securities. The interest rate on the subordinated debentures is adjusted quarterly to 163 basis points over three-month CME Term SOFR plus applicable tenor spread adjustment. On December 16, 2024 the most recent interest rate reset date, the interest rate was adjusted to 6.25% for the period ending March 16, 2025. The trust preferred securities mature on December 15, 2036, and may be redeemed at par, at the Corporation’s option, on any interest payment date. The trust preferred subordinated debt is considered Tier 1 capital for the consolidated capital ratios.
On March 30, 2021, ACNB entered into Subordinated Note Purchase Agreements with certain Purchasers pursuant to which the Corporation sold and issued $15.0 million in aggregate principal amount of its 4.00% fixed-to-floating rate Subordinated Notes due March 31, 2031. The Subordinated Notes bear interest at a fixed rate of 4.00% per year, from and including March 30, 2021 to, but excluding, March 31, 2026 or earlier redemption date. From and including March 31, 2026 to, but excluding the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate equal to the then current 90-day average SOFR plus 329 basis points. As provided in the Subordinated Notes, the interest rate on the Subordinated Notes during the applicable floating rate period may be determined based on a rate other than the 90-day average SOFR. The Subordinated Notes were issued by the Corporation to the Purchasers at a price equal to 100% of their face amount. The Subordinated Notes have a stated maturity of March 31, 2031, are redeemable by the Corporation at its option, in whole or in part, on or after March
30, 2026, and at any time upon the occurrences of certain events. The Subordinated Notes are considered Tier 2 capital for the consolidated capital ratios.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 14, 2025 | Showing above |
| 2022 | Mar 3, 2023 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.