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Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Schedule of the composition of the loan portfolio
The following table presents the composition of the loan portfolio as of June 30, 2023, and December 31, 2022:
 
In thousandsJune 30, 2023December 31, 2022
Commercial and industrial$158,537 $178,762 
Commercial real estate873,787 821,805 
Commercial real estate construction73,951 80,470 
Residential mortgage372,819 362,098 
Home equity lines of credit85,019 84,141 
Consumer9,704 11,334 
Total Loans$1,573,817 $1,538,610 
Schedule of nonaccrual loans by loan portfolio class
The following table presents nonaccrual loans as of June 30, 2023, and December 31, 2022: 

In thousandsJune 30, 2023December 31, 2022
Commercial and industrial$744 $781 
Commercial real estate1,601 1,873 
Commercial real estate construction— — 
Residential mortgage343 — 
Home equity lines of credit202 — 
 $2,890 $2,654 
Schedule of classes of loan portfolio summarized by the aggregate risk rating
The following table presents loan balances by year of origination and internally assigned risk rating for ACNB’s portfolio segments as of June 30, 2023:
In thousands202320222021202020192018 and PriorRevolvingTotal
Commercial and industrial
Pass$3,061 $26,848 $39,180 $16,865 $14,949 $25,763 $26,949 $153,615 
Special Mention118 388 344 514 174 613 1,387 3,538 
Substandard8 19 — 20 13 820 504 1,384 
Doubtful— — — — — — — — 
Total Commercial and industrial$3,187 $27,255 $39,524 $17,399 $15,136 $27,196 $28,840 $158,537 
Year-to-date gross charge-offs$— $— $— $— $— $29 $— $29 
Commercial real estate
Pass$72,354 $147,795 $144,506 $67,743 $72,227 $321,050 $14,273 $839,948 
Special Mention174 4,781 1,382 1,548 4,922 15,107 686 28,600 
Substandard— — — — 544 4,695 — 5,239 
Doubtful— — — — — — — — 
Total Commercial real estate$72,528 $152,576 $145,888 $69,291 $77,693 $340,852 $14,959 $873,787 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Commercial real estate construction
Pass$9,045 $43,769 $7,420 $1,016 $342 $3,781 $7,251 $72,624 
Special Mention— 477 — 93 — 757 — 1,327 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Total Commercial real estate construction$9,045 $44,246 $7,420 $1,109 $342 $4,538 $7,251 $73,951 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Residential mortgage
Pass$33,241 $75,302 $57,348 $32,870 $20,680 $146,279 $289 $366,009 
Special Mention480 84 713 412 708 3,438 — 5,835 
Substandard— — — — — 975 — 975 
Doubtful— — — — — — — — 
Total Residential Mortgage$33,721 $75,386 $58,061 $33,282 $21,388 $150,692 $289 $372,819 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Home equity lines of credit
Pass$939 $40 $— $— $99 $4,515 $78,107 $83,700 
Special Mention— — — — — 36 782 818 
Substandard— — — — — 501 — 501 
Doubtful— — — — — — — — 
Total Home equity lines of credit$939 $40 $— $— $99 $5,052 $78,889 $85,019 
Year-to-date gross charge-offs$— $— $— $— $— $— $— $— 
Consumer
Pass$1,389 $3,130 $971 $740 $362 $1,331 $1,755 $9,678 
Special Mention— — — — — — — — 
Substandard— — — — — — 26 26 
Doubtful— — — — — — — — 
Total Consumer$1,389 $3,130 $971 $740 $362 $1,331 $1,781 $9,704 
Year-to-date gross charge-offs$5 $62 $32 $7 $16 $48 $— $170 
Total Portfolio loans
Pass$120,029 $296,884 $249,425 $119,234 $108,659 $502,719 $128,624 $1,525,574 
Special Mention772 5,730 2,439 2,567 5,804 19,951 2,855 40,118 
Substandard8 19 — 20 557 6,991 530 8,125 
Doubtful— — — — — — — — 
Total Portfolio loans$120,809 $302,633 $251,864 $121,821 $115,020 $529,661 $132,009 $1,573,817 
Year-to-date gross charge-offs$5 $62 $32 $7 $16 $77 $— $199 
The following table presents the recorded investment in loan classes by internally assigned risk ratings and loan classes by performing and nonperforming status as of December 31, 2022:
In thousandsCommercial
and
Industrial		Commercial
Real Estate		Commercial
Real Estate
Construction		Residential
Mortgage		Home Equity
Lines of
Credit		ConsumerTotal
December 31, 2022
Pass$173,437 $786,711 $78,652 $356,081 $83,044 $11,334 $1,489,259 
Special Mention4,035 29,540 1,818 5,803 712 — 41,908 
Substandard1,290 5,554 — 214 385 — 7,443 
Doubtful— — — — — — — 
Loss— — — — — — — 
Total Portfolio Loans$178,762 $821,805 $80,470 $362,098 $84,141 $11,334 $1,538,610 
Performing Loans$177,981 $819,932 $80,470 $361,393 $83,643 $11,334 $1,534,753 
Nonperforming Loans781 1,873 — 705 498 — 3,857 
Total Portfolio Loans$178,762 $821,805 $80,470 $362,098 $84,141 $11,334 $1,538,610 
The following table presents loan balances by year of origination and performing and nonperforming status for ACNB’s portfolio segments as of June 30, 2023:
In thousands202320222021202020192018 and PriorRevolvingTotal
Commercial and industrial
Performing$3,187 $27,255 $39,524 $17,399 $15,136 $26,956 $28,336 $157,793 
Nonperforming— — — — — 240 504 744 
Total Commercial and industrial3,187 27,255 39,524 17,399 15,136 27,196 28,840 158,537 
Commercial real estate
Performing72,528 152,576 145,888 69,291 77,369 339,575 14,959 872,186 
Nonperforming— — — — 324 1,277 — 1,601 
Total Commercial real estate72,528 152,576 145,888 69,291 77,693 340,852 14,959 873,787 
Commercial real estate construction
Performing9,045 44,246 7,420 1,109 342 4,538 7,251 73,951 
Nonperforming— — — — — — — — 
Total Commercial real estate construction9,045 44,246 7,420 1,109 342 4,538 7,251 73,951 
Residential mortgage
Performing33,721 75,386 58,061 33,282 21,388 149,704 289 371,831 
Nonperforming— — — — — 988 — 988 
Total Residential Mortgage33,721 75,386 58,061 33,282 21,388 150,692 289 372,819 
Home equity lines of credit
Performing939 40 — — 99 4,726 78,889 84,693 
Nonperforming— — — — — 326 — 326 
Total Home equity lines of credit939 40 — — 99 5,052 78,889 85,019 
Consumer
Performing1,389 3,130 971 740 362 1,331 1,781 9,704 
Nonperforming— — — — — — — — 
Total Consumer1,389 3,130 971 740 362 1,331 1,781 9,704 
Total Portfolio loans
Performing120,809 302,633 251,864 121,821 114,696 526,830 131,505 1,570,158 
Nonperforming— — — — 324 2,831 504 3,659 
Total Portfolio loans$120,809 $302,633 $251,864 $121,821 $115,020 $529,661 $132,009 $1,573,817 
Schedule of classes of loan portfolio summarized by the past due status
The following tables present the classes of the loan portfolio summarized by the past due status as of June 30, 2023, and December 31, 2022:

In thousands30–59 Days Past Due60–89 Days
Past Due		>90 Days
Past Due		Total Past
Due		CurrentTotal Loans
Receivable		Loans
Receivable
>90 Days
and
Accruing
June 30, 2023
Commercial and industrial$— $126 $161 $287 $158,250 $158,537 $— 
Commercial real estate419 198 — 617 873,170 873,787 — 
Commercial real estate construction113 18 — 131 73,820 73,951 — 
Residential mortgage47 — 988 1,035 371,784 372,819 645 
Home equity lines of credit596 123 124 843 84,176 85,019 124 
Consumer63 27 — 90 9,614 9,704 — 
Total Loans$1,238 $492 $1,273 $3,003 $1,570,814 $1,573,817 $769 

In thousands30–59 Days Past Due60–89 Days
Past Due		>90 Days
Past Due		Total Past
Due		CurrentTotal Loans
Receivable		Loans
Receivable
>90 Days
and
Accruing
December 31, 2022
Commercial and industrial$287 $— $162 $449 $178,313 $178,762 $— 
Commercial real estate2,026 350 255 2,631 819,174 821,805 — 
Commercial real estate construction24 — — 24 80,446 80,470 — 
Residential mortgage2,969 970 705 4,644 357,454 362,098 705 
Home equity lines of credit438 117 498 1,053 83,088 84,141 498 
Consumer155 80 — 235 11,099 11,334 — 
Total Loans$5,899 $1,517 $1,620 $9,036 $1,529,574 $1,538,610 $1,203 
Financing Receivable, Loan Portfolio Class
The following table summarizes information relative to individually evaluated loans by loan portfolio class as of June 30, 2023 and December 31, 2022:
 
 Individually Evaluated Loans with AllowanceIndividually Evaluated  Loans with
No Allowance
In thousandsRecorded InvestmentRelated
Allowance		Recorded InvestmentRelated
Allowance
June 30, 2023  
Commercial and industrial$744 $647 $— $— 
Commercial real estate324 184 1,277 — 
Commercial real estate construction— — — — 
Residential mortgage— — 343 — 
Home equity lines of credit— — 202 — 
 $1,068 $831 $1,822 $— 
December 31, 2022
Commercial and industrial$781 $628 $— $— 
Commercial real estate350 192 4,984 — 
Commercial real estate construction— — — — 
Residential mortgage— — — — 
Home equity lines of credit— — — — 
$1,131 $820 $4,984 $— 
Financing Receivable, Amortized Cost Basis
The following table presents the amortized cost basis of individually evaluated loans as of June 30, 2023. Changes in the fair value of the collateral for individually evaluated loans are reported as provision for credit losses or a reversal of provision for credit losses in the period of change.

June 30, 2023
Type of Collateral
In thousandsBusiness AssetsReal Estate
Commercial and industrial$744 $— 
Commercial real estate— 1,601 
Commercial real estate construction— — 
Residential mortgage— 343 
Home equity lines of credit— 202 
Consumer— — 
Total$744 $2,146 
Summary of allowance for loan losses and recorded investment in loans receivable
The following tables summarize the allowance for credit losses and allowance for loan losses and recorded investment in loans receivable:
In thousandsCommercial
and
Industrial		Commercial
Real Estate		Commercial
Real Estate
Construction		Residential
Mortgage		Home Equity
Lines of
Credit		ConsumerUnallocatedTotal
AS OF AND FOR THE PERIOD ENDED JUNE 30, 2023
      
Allowance for Credit Losses       
Beginning balance - April 1, 2023$2,105 $11,032 $2,465 $3,366 $379 $138 $— $19,485 
Charge-offs— — — — — (82)— (82)
Recoveries9 — — — — 9 — 18 
Provisions (credits)(173)696 (580)(291)9 66 — (273)
Ending balance - June 30, 2023$1,941 $11,728 $1,885 $3,075 $388 $131 $— $19,148 
Beginning balance - January 1, 2023$2,848 $10,016 $1,000 $3,029 $347 $376 $245 $17,861 
Impact of CECL adoption(762)1,106 1,347 297 17 (142)(245)$1,618 
Charge-offs(29)— — — — (170)— (199)
Recoveries10 — — — — 34 — 44 
Provisions (credits)(126)606 (462)(251)24 33 — (176)
Ending balance - June 30, 2023$1,941 $11,728 $1,885 $3,075 $388 $131 $— $19,148 
Ending balance: individually evaluated for impairment
$647 $184 $— $— $— $— $— $831 
Ending balance: collectively evaluated for impairment
$1,294 $11,544 $1,885 $3,075 $388 $131 $— $18,317 
Loans Receivable        
Ending balance$158,537 $873,787 $73,951 $372,819 $85,019 $9,704 $— $1,573,817 
Ending balance: individually evaluated for impairment
$744 $1,601 $— $343 $202 $— $— $2,890 
Ending balance: collectively evaluated for impairment
$157,793 $872,186 $73,951 $372,476 $84,817 $9,704 $— $1,570,927 
AS OF AND FOR THE PERIOD ENDED JUNE 30, 2022
      
Allowance for Loan Losses        
Beginning balance - April 1, 2022$3,280 $10,625 $666 $3,082 $426 $385 $499 $18,963 
Charge-offs(34)— — (3)— (1)— (38)
Recoveries5 — — 5 — 8 — 18 
Provisions (credits)(135)214 152 115 (30)35 (351)— 
Ending balance - June 30, 2022$3,116 $10,839 $818 $3,199 $396 $427 $148 $18,943 
Beginning balance - January 1, 2022$3,176 $10,716 $616 $3,235 $501 $408 $381 $19,033 
Charge-offs(97)— — (3)— (20)— (120)
Recoveries15 — — 5 — 10 — 30 
Provisions (credits)22 123 202 (38)(105)29 (233)— 
Ending balance - June 30, 2022$3,116 $10,839 $818 $3,199 $396 $427 $148 $18,943 
Ending balance: individually evaluated for impairment
$742 $832 $— $— $— $— $— $1,574 
Ending balance: collectively evaluated for impairment
$2,374 $10,007 $818 $3,199 $396 $427 $148 $17,369 
Loans Receivable        
Ending balance$177,115 $818,117 $69,120 $348,475 $83,589 $13,376 $— $1,509,792 
Ending balance: individually evaluated for impairment
$895 $7,000 $— $— $— $— $— $7,895 
Ending balance: collectively evaluated for impairment
$176,220 $811,117 $69,120 $348,475 $83,589 $13,376 $— $1,501,897 
In thousandsCommercial
and
Industrial		Commercial
Real Estate		Commercial
Real Estate
Construction		Residential
Mortgage		Home Equity
Lines of
Credit		ConsumerUnallocatedTotal
AS OF DECEMBER 31, 2022       
Allowance for Loan Losses        
Ending balance$2,848 $10,016 $1,000 $3,029 $347 $376 $245 $17,861 
Ending balance: individually evaluated for impairment
$628 $192 $— $— $— $— $— $820 
Ending balance: collectively evaluated for impairment
$2,220 $9,824 $1,000 $3,029 $347 $376 $245 $17,041 
Loans Receivable        
Ending balance$178,762 $821,805 $80,470 $362,098 $84,141 $11,334 $— $1,538,610 
Ending balance: individually evaluated for impairment
$781 $5,334 $— $— $— $— $— $6,115 
Ending balance: collectively evaluated for impairment
$177,981 $816,471 $80,470 $362,098 $84,141 $11,334 $— $1,532,495