About ACNB

ACNB Corporation (ACNB) operates as the financial holding company for ACNB Bank (the bank) that provides banking and financial services to customers primarily in the southcentral Pennsylvania and northern Maryland region of the country. The bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of community banking offices and loan offices located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York and the Maryland counties of Baltimore, Carroll, and Frederick. ACNB Insurance Services, Inc., the company’s insurance subsidiary, is a full-service agency with licenses in 44 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster and Jarrettsville, Maryland, and Gettysburg, Pennsylvania. On January 11, 2020, ACNB completed its acquisition of Frederick County Bancorp, Inc. (FCBI) and its wholly-owned subsidiary, Frederick County Bank, a Maryland state-chartered, FDIC-insured community bank headquartered in Frederick, Maryland. On February 28, 2022, ACNB Insurance Services, Inc. completed the acquisition of the business and assets of Hockley & O’Donnell Insurance Agency, LLC, Gettysburg, PA. Banking Subsidiary ACNB Bank ACNB Bank is a full-service commercial bank operating under charter from the Pennsylvania Department of Banking and Securities. The bank’s principal market areas include Adams County, Pennsylvania, and its environs in southcentral Pennsylvania, as well as Carroll County and Frederick County, Maryland, in northern Maryland. This geographic area depends on agriculture, industry, tourism, education and healthcare to provide employment for its residents. The main community banking office of the bank is located at 16 Lincoln Square, Gettysburg, Pennsylvania. In addition to its main office, the bank has community banking offices in Pennsylvania, including Adams County, York County, Cumberland County, and Franklin County. There are also loan production offices situated in Lancaster and York, Pennsylvania, and Hunt Valley, Maryland. NWSB Bank, a division of ACNB Bank, serves its local marketplace via a network of community banking offices located in Carroll County, Maryland. FCB Bank, a division of ACNB Bank, serves its marketplace via a network of community banking offices located in Frederick County, Maryland. Effective January 1, 2023, NWSB Bank and FCB Bank, formally adopted the ACNB Bank name and brand identity in the counties of Carroll and Frederick in northern Maryland, respectively. The bank’s service delivery channels for its customers also include the ATM network, Customer Contact Center, and Online, Telephone and Mobile Banking. Commercial lending includes commercial mortgages, real estate development and construction loans, accounts receivable and inventory financing, and agricultural and governmental loans. Consumer lending programs include home equity loans and lines of credit, automobile and recreational vehicle loans, manufactured housing loans, and personal lines of credit. Mortgage lending programs include personal residential mortgages, residential construction loans, and investment mortgage loans. A trust is a legal fiduciary agreement whereby ACNB Bank, through its Trust & Investment Services function, is named as trustee of financial assets. As trustee, ACNB Bank invests, protects, manages and distributes financial assets as defined in the agreement. Estate settlement governed by the last will and testament of an individual constitutes another line of business for ACNB Bank Trust & Investment Services. ACNB Bank has the knowledge and expertise to act as executor. Other services include, but are not limited to, those related to testamentary trusts, life insurance trusts, charitable remainder trusts, guardianships, powers of attorney, custodial accounts, and investment management and advisory accounts. In addition to ACNB Bank Trust & Investment Services, under the umbrella of ACNB Wealth Management, the bank offers retail brokerage services through a third-party provider as a result of the acquisition of New Windsor State Bank effective July 1, 2017. This third-party provider is a broker/dealer, unaffiliated with ACNB Bank. Nonbanking Subsidiaries ACNB Insurance Services, Inc. On January 6, 2022, ACNB announced the name change and rebranding of the insurance subsidiary to ACNB Insurance Services, Inc. from Russell Insurance Group, Inc. effective January 1, 2022. This rebranding reinforces the common ownership by ACNB of both ACNB Bank and the insurance agency, as well as makes this affiliation more visible for businesses and consumers in order to leverage cross-selling opportunities in the shared communities served. On February 28, 2022, ACNB Insurance Services, Inc. completed its acquisition of Hockley & O’Donnell Insurance Agency, LLC, located in Gettysburg, Pennsylvania. ACNB’s wholly-owned subsidiary, ACNB Insurance Services, Inc., is a full-service insurance agency that offers a broad range of property, casualty, health, life and disability insurance to both commercial and individual clients with licenses in 44 states. Based in Westminster, Maryland, ACNB Insurance Services, Inc., serves the needs of its clients as an independent insurance agency. ACNB Insurance Services, Inc. operates additional locations in Jarrettsville, Maryland, and Gettysburg, Pennsylvania. ACNB Insurance Services, Inc. is managed separately from the banking and related financial services that the company offers and is reported as a separate segment. Market Area ACNB’s major operations are in the more rural and small town areas of the Harrisburg-Carlisle MSA and the York-Hanover MSA in Pennsylvania, along with all of Adams County, Pennsylvania, parts of Franklin County, Pennsylvania, and all of Carroll County and Frederick County, Maryland. Major types of employers include those focused on manufacturing, education, healthcare, agriculture, tourism, and transportation/warehousing, as well as local governments. Loans The company grants commercial, residential, and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans throughout southcentral Pennsylvania and northern Maryland. The loans receivable portfolio is segmented into commercial, residential mortgage, home equity lines of credit, and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial real estate, and commercial real estate construction. Commercial and Industrial Lending — The company originates commercial and industrial loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment purchases, inventory, and accounts receivable. Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral, such as real estate is provided as additional security for the loan. Commercial Real Estate Lending — The company engages in commercial real estate lending in its primary market area and surrounding areas. The company’s commercial loan portfolio is secured primarily by commercial retail space, office buildings, and hotels. Commercial Real Estate Construction Lending — The company engages in commercial real estate construction lending in its primary market area and surrounding areas. The company’s commercial real estate construction lending consists of commercial and residential site development loans, as well as commercial building construction and residential housing construction loans. The company’s commercial real estate construction loans are generally secured with the subject property. Residential Mortgage Lending — One-to-four family residential mortgage loan originations, including home equity closed-end loans, are generated by the company’s marketing efforts, its present customers, walk-in customers, and referrals. These loans originate primarily within the company’s market area or with customers primarily from the market area. The company offers fixed-rate and adjustable-rate mortgage loans with terms up to a maximum of 30 years for both permanent structures and those under construction. The company’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The company generally requires borrowers to obtain an attorney’s title opinion or title insurance, as well as fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. The company has not engaged in subprime residential mortgage originations. Home Equity Lines of Credit Lending — The company originates home equity lines of credit primarily within the company’s market area or with customers primarily from the market area. Home equity lines of credit are generated by the company’s marketing efforts, its present customers, walk-in customers, and referrals. Consumer Lending — The company offers a variety of secured and unsecured consumer loans, including those for vehicles and mobile homes and loans secured by savings deposits. These loans originate primarily within the company’s market area or with customers primarily from the market area. Consumer loans may entail greater credit risk than residential mortgage loans or home equity lines of credit, particularly in the case of consumer loans, which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. Securities As of December 31, 2022, the company’s securities included U.S. government and agencies; mortgage-backed securities, residential; state and municipal securities; and corporate bonds. Deposits As of December 31, 2022, the company’s deposits included non-interest bearing demand; interest bearing demand; savings; time certificates of deposit of $250,000 or less; and time certificates of deposit greater than $250,000. Supervision and Regulation ACNB is a financial holding company and is subject to the regulations of the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956. The company’s banking subsidiary has a Bank Secrecy Act and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 compliance program commensurate with its risk profile and appetite. Dodd-Frank Wall Street Reform and Consumer Protection Act has had and will continue to have a significant impact on ACNB’s business operations as its provisions take effect. The bank is subject to regulation and periodic examination by the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation (FDIC). The FDIC, as provided by law, insures the bank’s deposits. The operations of the subsidiary bank are subject to statutes applicable to banks chartered under the banking laws of Pennsylvania, to state nonmember banks of the Federal Reserve, and to banks whose deposits are insured by the FDIC. The subsidiary bank’s operations are also subject to regulations of the Pennsylvania Department of Banking and Securities, Federal Reserve, and FDIC. The Pennsylvania Department of Banking and Securities, which has primary supervisory authority over banks chartered in Pennsylvania, regularly examines banks in such areas as reserves, loans, investments, management practices, and other aspects of operations. The subsidiary bank is also subject to examination by the FDIC for safety and soundness, as well as consumer compliance. These examinations are designed for the protection of the subsidiary bank’s depositors rather than ACNB’s stockholders. The subsidiary bank must file quarterly and annual reports to the Federal Financial Institutions Examination Council, or FFIEC. ACNB and its subsidiary bank are affected by the monetary and fiscal policies of government agencies, including the Federal Reserve and FDIC. History ACNB Corporation was founded in 1857.