ACNB Corporation: A Holding Company With Growing Asset Base

ACNB Corporation.

Introduction:

ACNB Corporation (NASDAQ:ACNB) is the holding company for Adams County National Bank. The Company offers commercial and retail banking, trust, accounting, and insurance services through a network of full-service offices in Adams, Cumberland, and York counties in Pennsylvania. ACNB's Pennbanks Insurance Co. subsidiary re-insures credit life and credit accident and disability risks. It operates 19 retail banking offices in Adams, Cumberland, and York Counties, in Pennsylvania, as well as 2 loan production offices in York and Franklin Counties, Pennsylvania. The company is headquartered in Gettysburg, Pennsylvania.

Stock Snapshot:

As of Nov 30’ 2012, the stock for ACNB Corporation (NASDAQ:ACNB) stood at USD 16.26, representing a total market capitalization of USD 96.9 million. The stock has traded between a range of USD 13.34 and USD 17.00 over the last 52 weeks. The stock has witnessed an average volume of 3,861 shares over the last 3 months.

Major Competitors:

BOK Financial Corporation, a financial holding company, offers a range of financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. The stock for BOK Financial Corporation stood at USD 55.04 as of 30^th Nov’ 2012; representing total market capitalization of USD 3.75 billion. The stock has traded between a range of USD 52.10 and USD 60.00 over the last 52 weeks. The stock has witnessed an average volume of 59,846 shares over the last 3 months.

Commerce Bancshares, Inc. (NASDAQ:CBSH) operates as the bank holding company for Commerce Bank, N.A. that provides various general banking services to individuals and businesses . The stock for Commerce Bancshares, Inc. stood at USD 35.78 as at 30^th Nov’ 2012; representing a total market capitalization of USD 3.28 billion. The stock has traded between a range of USD 34.17 and USD 40.70 over the last 52 weeks. The stock has witnessed an average volume of 512,685 shares over the last 3 months.

Multiple Analysis:

The stock for ACNB Corporation (NASDAQ:ACNB) has been trading at a price to earnings ratio of 11.8, a price to sales ratio of 2.36, and a price to book ratio of 0.95. In comparison, the stock for BOK Financial Corporation (NASDAQ:BOKF) has been trading at a price to earnings ratio of 11.2, a price to sales ratio of 2.74, and a price to book ratio of 1.26, whereas the stock for Commerce Bancshares, Inc. (NASDAQ:CBSH) has been trading at a price to earnings ratio of 12.63, a price to sales ratio of 3.23 and a price to book ratio of 1.43.

Financial Highlights:

For 9MFY12, the net interest income totaled USD 25.75 million as compared to USD 25.72 million for the corresponding period last year; representing an increase of USD 33,000, or less than 1%. The increase in net income was due to a decrease in interest expense to a slightly greater degree than the decrease in interest income, both resulting from reductions in market rates associated with the continued low rates, due to economic conditions and actions by the Federal Reserve Bank.
The provision for loan losses was recorded at USD 3.375 million for 9MFY12, as compared to USD 3.61 million in the corresponding period last year; representing a YoY decrease of 7%. The decrease was a result of analysis of the adequacy of the allowance for loan losses; however, this decrease is not necessarily indicative of future provisioning.
Total assets were recorded at USD 1.06 billion as of 30^th September ‘ 2012 as compared to USD 1.004 billion as at 31^st December 2011.
During 9MFY12, average earning assets increased to USD 953.3 million from USD 912.3 million during the corresponding period last year.
Factors to Watch Out For:
- Growing asset base!
- Strong financial performance!
- Weak US Economy Outlook!