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ACNB Corporation

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FY2013 Annual Report · ACNB Corporation
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2013 ANNUAL REVIEW

NEW HORIZONS BECKON.

TA B LE O F  CO NTE NT S

Shareholder Information . . . . . . . . . . . . . . . . . . . . . 1

Consolidated Statements of Income . . . . . . . . . . 9

Business Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Boards of Directors  . . . . . . . . . . . . . . . . . . . . . . . . 10

Financial Highlights  . . . . . . . . . . . . . . . . . . . . . . . . . 2

Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Report to Shareholders  . . . . . . . . . . . . . . . . . . . . . 3

Office Locations . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Five-Year Financial Overview. . . . . . . . . . . . . . . . . 6

Contact Information . . . . . . . . . . . . . . . . . . . . . . . . 12

Consolidated Statements of Condition . . . . . . . . 8

S H A R E H O LD E R   I N FO R M ATI O N

Annual Meeting
The  2014  Annual  Meeting  of  Shareholders  for 
ACNB  Corporation  will  be  held  on  Tuesday, 
May  6,  at  1:00  p.m.  at  the  ACNB  Corporation 
Operations Center, 100 V-Twin Drive, Gettysburg, 
PA. All proxy and other materials for the Annual 
Meeting are available on the Internet at acnb.com 
under ACNB Corporation Investor Relations.

Stock Listing
ACNB  Corporation  common  stock  is  listed  and 
traded  on  The  NASDAQ  Capital  Market  under 
the symbol ACNB.

Annual Report on Form 10-K
A copy of ACNB Corporation’s Annual Report 
on Form 10-K, as filed with the Securities and 
Exchange Commission, may be obtained, 
without charge, by contacting:

Lynda L. Glass  
Executive Vice President, Secretary &  
Chief Governance Officer 
ACNB Corporation 
PO Box 3129 
Gettysburg, PA 17325 
717.339.5085

The Annual Report and other Corporation reports 
are  also  filed  electronically  with  the  Securities 
and  Exchange  Commission  and  are  accessible  
by  the  public  on  the  Internet  at  www.sec.gov/
edgar.shtml.

Transfer Agent, Registrar  
and Dividend Disbursing Agent 
Registrar and Transfer Company 
10 Commerce Drive 
Cranford, NJ 07016 
www.rtco.com

shareholder 

inquiries  or 

For 
information 
regarding  the  ACNB  Corporation  Dividend 
Reinvestment  and  Stock  Purchase  Plan,  call 
Registrar  and  Transfer  Company  toll  free  at 
1.800.368.5948. 

Market Makers 
Boenning & Scattergood, Inc. 
West Conshohocken, PA 
610.832.1212/1.800.883.1212

Janney Montgomery Scott LLC 
York, PA  
717.779.2720/1.800.999.0503

Local Broker 
Wells Fargo Advisors, LLC 
Hanover, PA 
717.637.3817/1.800.242.1331

2 01 3 A N N UA L R E V I E W   |    1

B U S I N E S S  P RO FI LE

ACNB Corporation, headquartered in Gettysburg, PA, is the financial holding company for the wholly-

owned subsidiaries of ACNB Bank, Gettysburg, PA, and Russell Insurance Group, Inc., Westminster, MD.

Through  its  banking  subsidiary  of  ACNB  Bank, 

Chambersburg,  Franklin  County,  PA,  with  plans 

ACNB  Corporation  provides  a  wide  array  of 

for a new retail banking office in this community 

consumer, commercial and fiduciary services to 

opening in 2014.

fulfill the financial needs of individuals, businesses, 

public entities, and community organizations in 

Russell  Insurance  Group,  Inc.,  the  insurance 

its trading area. Originally founded in 1857, ACNB 

subsidiary of ACNB Corporation, offers a broad 

Bank serves its marketplace as of December 31, 

range of commercial and personal insurance lines 

2013,  via  a  network  of  19  retail  banking  offices 

through licenses in 36 states, including Maryland 

located  throughout  Adams  County,  PA,  as  well 

and  Pennsylvania.  This  full-service  insurance 

as in Dillsburg, Hanover and Spring Grove, York 

agency  has  office  locations  in  Westminster, 

County, PA, and in Newville, Cumberland County, 

Carroll  County,  MD, 

and  Germantown, 

PA. In addition, the Bank operates a loan office in 

Montgomery County, MD.

FI N A N C IA L H I G H LI G HT S

For the Year 
Net interest income 
Net income 
Cash dividends paid 

Per Share Statistics 
Basic earnings 
Cash dividends paid 
Book value (year-end) 

At Year-End 
Total assets 
Total loans 
Total deposits 
Total stockholders’ equity 

2013 
$33,612,000 
9,315,000 
4,542,000 

2012 
$34,344,000 
8,886,000 
4,524,000 

2011
$34,370,000 
8,502,000 
4,512,000

$  1.56 
0.76 
17.83 

$  1.49 
0.76 
16.98 

$  1.43 
0.76 
16.39

$1,046,047,000  $1,049,995,000  $1,004,823,000 
694,468,000 
782,795,000 
97,474,000

728,648,000 
800,643,000 
106,802,000 

708,136,000 
834,176,000 
101,264,000 

Key Ratios 
Return on average assets 
Return on average equity 
Dividend payout 
Average stockholders’ equity to average assets 

0.90% 
9.00% 
48.76% 
9.95% 

0.86% 
8.91% 
50.91% 
9.61% 

0.85% 
8.80% 
53.15% 
9.72%

2   |    N E W H O R IZO N S B EC KO N

R E P O R T TO S H A R E H O LD E R S

New  horizons  beckon  as  ACNB  Corporation  sees  a  strengthening  business  environment  after  more 

than  five  years  of  economic  uncertainty  and  industry  difficulties.  Throughout  the  recession,  ACNB 

Corporation  managed  towards  the  future.  The  focus  remained  on  ensuring  safety  and  soundness, 

building capital, enhancing asset quality, and applying the necessary resources to lay the foundation 

for growth. Now there are signs of recovery, mixed with a sense of caution, in the economic outlook. 

The Corporation and its wholly-owned subsidiaries of ACNB Bank and Russell Insurance Group, Inc. see 

new horizons in our geographic footprint and in our product and services offering and delivery.

ACNB Corporation Financial Performance

ACNB Corporation’s net income advanced year 
over year, as it has since 2008 at the beginning 
of  the  economic  recession.  For  the  year  ended 
December 31, 2013, net income was $9,315,000, 
or  $1.56  per  share.  In  comparison  to  2012,  this 
is  an  increase  of  $429,000,  or  5%.  Net  income 
for  the  year  ended  December  31,  2012,  was 
$8,886,000, or $1.49 per share. 

Net  interest  income  is  the  most  significant 
component  of  the  Corporation’s  net  income. 
It  is  income  derived  from  the  interest  earned 
on  loans  and  investments,  less  the  interest 
paid  on  deposits  and  borrowings,  through  the 
Corporation’s  banking  subsidiary,  ACNB  Bank. 
ACNB  Corporation 
reported  $33,612,000 
in  net  interest  income  for  the  year  ended  
December  31,  2013,  compared  to  $34,344,000 
for  the  year  ended  December  31,  2012.  As 
interest  rates  remain  at  historically  low  levels 
with  deposit  interest  rates  at  practical  floors, 
the  challenge  is  to  minimize  the  impact  of  net 
interest  margin  compression  by  increasing  the 
volume  of  loans  and,  thus,  the  level  of  interest 
income,  while  controlling  interest  expense.  The 
Corporation’s  net  interest  margin  declined  to 
3.48%  for  2013  from  3.56%  for  2012.  However, 
stronger  loan  growth  towards  the  end  of  2013 
helped  to  offset  some  of  the  impact  of  lower 
yields on loans during the year. 

In 2013, $1,450,000 was provisioned to fund and 
fortify the allowance for loan losses, which is the 
reserve set aside for potential loan losses in the 

future. This dollar amount was reduced from the 
$4,675,000 charged against earnings in 2012 as 
the Corporation adjusted the provision expense 
to reflect current conditions in the loan portfolio 
and to maintain the allowance for loan losses at a 
level deemed to meet the risk characteristics of 
the loan portfolio. As in prior years, asset quality 
remains  a  management  focus  at  the  banking 
subsidiary  due  to  the  slow  economic  recovery 
and the elevated level of non-performing assets 
relative to years prior to the recession. At year-
end 2013 and 2012, a key credit quality metric of 
the ratio of non-performing loans to total loans 
was  1.44%  and  1.00%,  respectively,  and  though 
higher in 2013 remains consistent with or lower 
than peers in the industry. Further, the allowance 
for loan losses stood at $16,091,000 at year-end 
2013,  in  comparison  to  $16,825,000  at  year-
end  2012.  The  resulting  ratio  of  the  allowance 
for  loan  losses  to  total  loans  was  2.21%  as  of  
December  31,  2013,  and  the  coverage  ratio  of 
the allowance for loan losses to non-performing 
loans was 153.26% as of this same date. Both of 
these ratios are strong and firmly exceed those 
of peers. 

The  Corporation’s  return  on  average  assets 
was improved year over year at 0.90% for 2013, 
compared  to  0.86%  for  2012.  The  return  on 
average equity advanced to 9.00% for 2013 from 
8.91% for 2012, even given the rise in stockholders’ 
equity  during  2013.  And,  the  ratio  of  average 
stockholders’  equity  to  average  assets  rose  to 
9.95% at year-end 2013, as compared to 9.61% at 
year-end 2012. 

2 01 3 A N N UA L R E V I E W   |    3

ACNB  Corporation’s  assets  remained  stable  at 
$1.046 billion and $1.050 billion as measured on 
December  31,  2013  and  2012,  respectively.  Total 
deposits  decreased  by  more  than  $33  million, 
or  4%,  year  over  year  to  $801  million  at  year-
end  2013  due  primarily  to  ongoing  low  interest 
rates  on  certificates  of  deposit  and  higher 
returns  in  the  equities  market.  Total  loans  rose 
by  nearly  $21  million,  or  3%,  to  $729  million  at  
December  31,  2013,  which  is  significant  given 
the  volume  of  loans  in  the  portfolio  that  paid 
down or paid off throughout the year. And, very 
importantly,  a  5%  rise  in  stockholders’  equity 
resulted in an aggregate of $107 million at year-
end 2013, in comparison to $101 million at the end 
of the prior year.

Dividends to Shareholders

Once  again,  our  shareholders  benefited  from 
the  Corporation’s  financial  performance  in  2013 
as  ACNB  Corporation  furthered  its  long  history 
of  paying  dividends  to  its  shareholders.  A  cash 
dividend  of  $0.19  per  share  was  paid  in  each 
quarter of 2013. In total, $4,542,000, or $0.76 per 
share,  was  approved  by  the  ACNB  Corporation 
Board  of  Directors  and  paid  to  shareholders 
in  2013  for  a  dividend  payout  ratio  of  48.76%. 
This  is  a  meaningful  indication  of  our  strength 
and  soundness,  as  well  as  our  commitment  to 
generating  value  for  those  who  own  the  shares 
of ACNB Corporation.

The  ACNB  Corporation  Dividend  Reinvestment 
and  Stock  Purchase  Plan  offers  registered 
shareholders 
to  purchase 
the  opportunity 
additional  shares  of  the  Corporation’s  common 
stock  through  the  automatic  reinvestment  of 
cash dividends and voluntary cash payments on 
a  quarterly  basis.  The  benefit  to  the  registered 
shareholders who elect to participate in the plan 
includes  the  convenience  of  the  acquisition  of 
additional shares of ACNB Corporation common 
stock,  as  well  as  the  ability  to  do  so  without  
paying  service  fees  or  brokerage  commissions. 
Since  the  plan’s  introduction  in  January  2011, 
62,968 new shares of ACNB Corporation common 
stock  have  been  issued  to  plan  participants 
as  a  result  of  both  dividend  reinvestment  and 
voluntary cash purchases.

4   |    N E W H O R IZO N S B EC KO N

ACNB Bank 

ACNB Bank is the primary driver of revenues and 
profit at ACNB Corporation. This source of strength 
is  founded  upon  a  history  of  independence 
and  growth  for  more  than  155  years.  Today, 
ACNB  Bank  serves  communities  throughout 
Adams County, Pennsylvania, as well as in York, 
Cumberland and Franklin Counties, Pennsylvania, 
with  a  network  of  19  retail  banking  offices  and 
a loan production office. In December 2013, the 
major  expansion  project  at  the  Bank’s  North 
Hanover  Office  was  nearly  complete  with  the 
consolidation  of  the  commercial  and  residential 
mortgage  lending  staff  and  a  trust  officer  
under  the  same  roof  as  the  retail  banking  staff 
in  this  York  County  location.  This  same  month, 
the  Bank  celebrated  with  a  groundbreaking 
ceremony for the new retail banking office at 850 
Norland  Avenue,  Chambersburg,  in  the  Franklin 
County market. 

It  has  always  been  the  Bank’s  mission  to 
reinvest  depositors’  dollars  in  loans  to  others  in 
our  communities.  This  endeavor  occurs  every 
business  day  at  ACNB  Bank  with  the  continued 
goal  of  increasing  loan  growth  in  local  markets, 
while  maintaining  a  reasonable  funding  base 
by  offering  competitive  deposit  products  and 
services. In 2013, asset quality was again a high 
priority  due  to  economic  conditions  and  the 
financial impact on the Bank’s borrowers. The risk 
in the Bank’s loan portfolio is carefully managed 
and monitored based upon prudent underwriting 
and  review  standards  for  the  protection  of 
depositors and shareholders alike. 

The offering and delivery of banking services to 
its customers is evolving with consumer demand 
for  multiple  channels  and  adoption  of  digital 
banking  by  customers  of  varied  demographics. 
Coupled  with  the  growth  of  smartphones 
and  tablets  for  use  in  day-to-day  activities, 
the  expansion  of  online  and  mobile  banking 
continues  as  persons  experience  an  increasing 
comfort  level  with  technology  as  well  as  value 
anytime  and  anywhere  convenience.  From  the 
Bank’s point of view, this expansion also applies 
to  online  communications  and  marketing —a 

focus initiated in 2013 with further development 
and execution planned for 2014. 

Today’s  banking  and  regulatory  environments 
necessitate  an  emphasis  on  capital  as  the  basis 
of  organizational  strength  and  sustainability. 
At  ACNB  Bank,  the  primary  capital  ratios  were 
further enhanced and fortified in 2013. The total 
risk-based  capital  ratio  at  year-end  2013  was 
14.26%, exceeding the 10.00% requirement to be 
well capitalized under banking regulations. At the 
end of 2012, this ratio was 14.07%. Improvement in 
the capital position of the Bank is predominantly 
a  function  of  retained  earnings,  which  is  the 
amount  of  net  income  after  the  payment  of 
dividends  to  the  Corporation  for  issuance  to 
ACNB Corporation shareholders.

Trust & Investment Services

fiduciary, 

investment  and 

ACNB  Bank’s  Trust  &  Investment  Services  staff 
provides 
related 
services  to  clients.  Income  from  this  business 
segment totaled $1,299,000 for 2013, and assets 
under  management  exceeded  $150  million  at 
December  31,  2013.  Looking  forward,  Trust  & 
Investment  Services  is  focused  on  expanding 
its  client  base  geographically,  beyond 
its 
Gettysburg  base,  and  via  new  products  and 
services.  One  step  in  this  direction  was  the 
successful  introduction  of  the  ACNB  Portfolio 
Builder account in January 2013, which attracted 
new client relationships to this business line of the 
Bank.  This  new  investment  option,  based  upon 
a  limited  mutual  fund  asset  allocation  model, 
features  a  lower  minimum  account  balance  of 
$50,000, lower cost, personalized planning, daily 
access, and local expert advice. 

Russell Insurance Group, Inc.

in  2005, 

Inc.  was  acquired 

The  insurance  subsidiary  of  Russell  Insurance 
Group, 
is 
headquartered in Westminster, Maryland, and is 
led by Frank C. Russell, Jr. who founded the full-
service insurance agency in 1978. The weakness 
in economic conditions and the financial markets 
in  recent  years  had  a  dampening  effect  on  the 
insurance  industry  resulting  in  lower  premiums 
and,  therefore,  lower  revenues.  Today,  Russell 

Insurance  Group  still  faces  the  challenges 
of  heightened  competition,  especially  in  the 
commercial  lines  of  business,  and  a  reduced 
overall  commission  structure.  Given 
these 
pressures,  commissions  from  insurance  sales 
decreased  to  $4,671,000  for  the  year  ended 
December 31, 2013, from $4,835,000 for the year 
ended December 31, 2012. 

In Closing

2013  was  a  year  of  continued  diligence  and 
discipline  in  managing  our  business  at  ACNB 
Corporation, but always with an eye towards the 
long-term horizon. The hard work, dedication and 
talent  of  the  more  than  300  people  who  work 
with  us  ensure  our  success.  Looking  ahead,  we 
are focused on the future and its opportunities to 
grow and expand. 

Your  financial  investment,  as  shareholders  of 
ACNB  Corporation,  is  integral  to  our  vision. 
Thank  you  for  your  confidence  in  our  future  as 
new horizons beckon.

Sincerely, 

Frank Elsner, III 
Chairman of the Board

Thomas A. Ritter 
President & Chief Executive Officer

Lynda L. Glass 
Executive Vice President,  
Secretary & Chief Governance Officer

David W. Cathell 
Executive Vice President, 
Treasurer & Chief Financial Officer

2 01 3 A N N UA L R E V I E W   |    5

FIV E -Y E A R FI N A N C IA L OV E RV I E W

Total Assets  
In millions of dollars

Total Deposits  
In millions of dollars

$961.9

$968.7

$1,004.8

$1,050.0

$1,046.0

$728.5

$746.5

$782.8

$834.2

 $800.6

2009

2010

2011

2012   

2013

2009

2010

2011

2012   

2013

Total Loans  
In millions of dollars

Total Stockholders’ Equity  
In millions of dollars

$644.7

$665.3

$694.5

$708.1

$728.6

$88.3

$93.8

$97.5

$101.3

$106.8

2009

2010

2011

2012   

2013

2009

2010

2011

2012   

2013

Net Income  
In millions of dollars

Earnings Per Share 
In dollars

$7.2

$8.4

$8.5

$8.9

$9.3

$1.22

$1.42

$1.43

$1.49

$1.56

2009

2010

2011

2012   

2013

2009

2010

2011

2012   

2013

6   |    N E W H O R IZO N S B EC KO N

Return on Average Assets  
Percent

Return on Average Equity  
Percent

0.75%

0.86%

0.85%

0.86%

0.90%

8.34%

9.15%

8.80%

8.91%

9.00%

2009

2010

2011

2012   

2013

2009

2010

2011

2012   

2013

Cash Dividends Paid Per Share  
In dollars

Book Value Per Share  
In dollars

$0.76

$0.76

$0.76

$0.76

$0.76

$14.90

$15.81

$16.39

$16.98

$17.83

2009

2010

2011

2012   

2013

2009

2010

2011

2012   

2013

2 01 3 A N N UA L R E V I E W   |    7

CO N SO LI DATE D  S TATE M E NT S  O F CO N D ITI O N

Dollars in thousands, except per share data

Assets 

Cash and due from banks 
Interest bearing deposits with banks  
   Cash and Cash Equivalents 

Securities available for sale  
Securities held to maturity (fair value $92,082 in 2013 and $50,980 in 2012) 
Loans held for sale 
Loans, net of allowance for loan losses ($16,091 in 2013 and $16,825 in 2012) 
Premises and equipment 
Restricted investment in bank stocks 
Investment in bank-owned life insurance 
Investments in low-income housing partnerships 
Goodwill 
Intangible assets 
Foreclosed assets held for resale 
Other assets 
   TOTAL ASSETS 

Liabilities

Deposits: 
   Non-interest bearing 
   Interest bearing 
   Total Deposits 

Short-term borrowings 
Long-term borrowings 
Other liabilities 
   TOTAL LIABILITIES 

Stockholders’ Equity

Preferred stock (par value $2.50; 20,000,000 shares authorized;  
   no shares outstanding) 
Common stock (par value $2.50; 20,000,000 shares authorized;  
   6,053,911 and 6,027,968 shares issued in 2013 and 2012,  
   respectively; 5,991,311 and 5,965,368 shares outstanding  
   in 2013 and 2012, respectively) 
Treasury stock, at cost (62,600 shares in 2013 and 2012) 
Additional paid-in capital 
Retained earnings 
Accumulated other comprehensive income (loss) 
   TOTAL STOCKHOLDERS’ EQUITY 
   TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 

December 31

2013 

2012

$     1 3 ,963  $    1 9 ,078 
       3 2 ,307  
         4 , 1 53 
5 1 ,385
1 8 , 1 1 6  

1 65 ,790 
1 2 9 ,983 
50 , 1 59 
94 ,373 
6 ,687 
496 
69 1 ,3 1 1 
7 1 2 ,55 7 
1 5 , 1 3 1 
1 5 ,99 1 
5 , 3 1 8 
6 ,86 1 
3 1 , 1 2 2 
32 ,23 7  
5 ,440 
4 ,6 87 
6 ,308 
6 ,308 
2 ,409 
1 ,845 
4 ,24 7 
1 ,762 
       20 ,83 1 
       1 4 ,688 
$ 1 046 ,047  $ 1 049 , 995

,

,

$   1 2 8 ,0 1 1  $   1 1 9, 297 
     7 1 4, 879 
    6 72 ,632 
834, 1 76
800 ,643 

49 ,052 
82 ,703 
         6 ,847 
  939 ,245 

47, 303 
5 9, 954 
    7, 298 
  948, 7 3 1

  — 

  — 

1 5,070   
1 5 ,1 3 5  
(
)
)
(
7 2 8 
7 2 8 
9 ,628 
9,246 
77,888 
82 ,66 1  
(
)
            2 1 2  
1 06 
     1 06 ,802 
     1 0 1 , 2 64  
$1 046 ,047  $1 049, 9 9 5 

,

,

See the consolidated financial statements and accompanying notes presented in the Corporation’s Annual Report on Form 10-K. 

8   |    N E W H O R IZO N S B EC KO N

 
 
 
         
 
CO N SO LI DATE D  S TATE M E NT S  O F I N CO M E

Dollars in thousands, except per share data

Interest Income 

Loans, including fees 
Securities: 
   Taxable 
   Tax-exempt 
   Dividends 
Other 
   TOTAL INTEREST INCOME 

Interest Expense 

Years Ended December 31

2013 

2012 

2011

$32,084 

$33,990  $ 34,493 

4, 2 30 
1, 1 97 
2 2 
        6 8 
3 7,6 0 1 

4,8 7 6 
1 ,45 7 
2 7 
       89 
40,43 9 

6 ,006 
1 ,25 2 
1 3 
        68 
4 1 ,832

Deposits 
Short-term borrowings 
Long-term borrowings 
   TOTAL INTEREST EXPENSE 
   NET INTEREST INCOME 
   PROVISION FOR LOAN LOSSES 
   NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 

2, 1 7 7 
6 1 
     1 , 7 5 1 
     3,9 89 
33,6 1 2 
     1 ,4 50 
  32, 1 6 2 

3 ,44 1 
76 
      2,5 7 8 
     6,095 
34,344 
      4,6 7 5 
  29,66 9 

4, 457 
9 1 
     2 , 9 1 4 
      7 , 462 
34, 370 
      5 , 435 
  28, 935

Other Income 

Service charges on deposit accounts 
Income from fiduciary activities 
Earnings on investment in bank-owned life insurance  
Gain on life insurance proceeds  
Gains on sales or calls of securities  
Service charges on ATM and debit card transactions  
Commissions from insurance sales  
Other  
   TOTAL OTHER INCOME 

Other Expenses 

Salaries and employee benefits 
Net occupancy  
Equipment 
Professional services 
Other tax 
Supplies and postage 
Marketing and corporate relations 
FDIC and regulatory 
Intangible assets amortization 
Foreclosed real estate expense (income) 
Other operating 
   TOTAL OTHER EXPENSES 
   INCOME BEFORE INCOME TAXES 
   PROVISION FOR INCOME TAXES 
   NET INCOME 

Per Share Data  

Basic earnings  
Cash dividends paid  

2,2 46 
1,2 99 
9 7 5 
  — 
  — 
1 ,4 34 
4,6 7 1  
      1 ,0 78 
  1 1 , 7 03  

2 ,43 3 
1 ,2 2 4 
98 1 
6 3 
7 
1 ,2 9 1 
4,8 3 5 
       1 ,03 3 
  1 1 ,86 7 

2 ,4 1 8 
1, 396 
968 
  — 
1 
1 , 2 36 
4,824 
         894 
  1 1 , 7 37

1 8,9 50 
1 ,9 5 7 
2,8 26 
8 95 
90 1 
5 8 3 
3 96 
7 68 
6 4 1 
5 76 
    3,5 2 2 
  32,0 1 5 
1 1 ,8 50 
    2,5 35 
$  9, 3 1 5 

1 8,5 5 3 
1 , 95 2 
2 ,5 3 7 
8 2 5 
8 3 3 
63 4 
3 7 2 
84 3 
64 1 
(
)
1 1 9 
    3 ,2 60 
   30, 3 3 1  
1 1 , 205 
     2 ,3 1 9 
$  8 ,88 6 

1 7 , 1 38 
2 ,043 
2 ,620 
9 1 1 
803 
640 
478 
1 ,026 
64 1 
725 
     2 , 99 1  
  30,0 1 6  
1 0,656 
     2 , 1 54  
$   8 ,502 

$      1.56 
$     0.76 

$      1.4 9  $ 
$      0.76 

   1.43 
$      0.76

2 01 3 A N N UA L R E V I E W   |    9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
B OA R DS O F D I R EC TO R S

ACNB Corporation and ACNB Bank Boards of Directors 

Frank Elsner, III 
Owner & Managing Director 

Donna M. Newell 
President & Chief  

Thomas A. Ritter 
President & Chief  

Alan J. Stock 
Owner  

ODT Global, LLC 

Executive Officer  

Executive Officer  

Eicholtz Company 

Chairman of the Board 

NTM Engineering, Inc.

ACNB Corporation  

Vice Chairman 

ACNB Corporation  

and ACNB Bank

Scott L. Kelley, Esquire 
President 

Stonesifer and Kelley, P.C.

James J. Lott 
President 

J. Emmett Patterson 
President & Owner 

JDCS Enterprise

Daniel W. Potts 
Director of Business 

Development 

and ACNB Bank

Marian B. Schultz 
Retired Dean 

Shippensburg University

David L. Sites 
Owner & Managing Partner 

Global Financial Services 

Realty Leasing & 

Bonnie Brae Fruit Farms, Inc.

Capgemini

Management Co.

ACNB Corporation  

and ACNB Bank

Harry L. Wheeler 
Retired Proprietor  

Wheeler Drywall

James E. Williams 
President 

C.E. Williams Sons, Inc.

Robert W. Miller 
Vice President 

Miller, Brown, Ohm & 

Associates, P.C.

ACNB Bank Honorary Directors

Dana P. Brandt 
J. Thomas Derick 
Frank C. Egger 

Richard L. Galusha 
William B. Lower  
Mervin J. Morrison

W. Irvin Nelson 
Ralph S. Sandoe 
L. Robert Snyder

Russell Insurance Group, Inc. Board of Directors

Frank Elsner, III 
Lynda L. Glass 

Daniel W. Potts 
Thomas A. Ritter 

Frank C. Russell, Jr.

1 0   |    N E W H O R IZO N S B EC KO N

O FFI C E R S

ACNB Corporation

Frank Elsner, III 
Chairman of the Board

Thomas A. Ritter 
President & 

Lynda L. Glass 
Executive Vice President,  

David W. Cathell 
Executive Vice President,  

Chief Executive Officer

Secretary &  

Treasurer &  

Chief Governance Officer 

Chief Financial Officer

ACNB Bank

Frank Elsner, III 
Chairman of the Board

Lynda L. Glass 
Executive Vice President, 

Laurie A. Laub 
Senior Vice President &  

Douglas A. Seibel 
Senior Vice President 

Secretary &  

Chief Risk Officer

James P. Helt 
Executive Vice President 

Banking Services

Sandra A. Deaner 
Senior Vice President 

Human Resources

Chief Credit Officer

Commercial Lending

Dorothy K. Puhl 
Senior Vice President 

Thomas R. Stone 
Senior Vice President 

Information Systems

Retail Banking

Carl L. Ricker 
Senior Vice President 

Retail Lending

Scott E. Hartlaub 
L. John Hicks 

Dennis R. Hollinger 
Michelle N. Paulnock 

R. Mark Purdy 
Lauren L. Shutt

Thomas A. Ritter 
President &  

Chief Executive Officer

David W. Cathell 
Executive Vice President, 

Treasurer & 

Chief Financial Officer

First Vice Presidents

Karen B. Arthur 
Barry C. Dillman 
Kathy S. Hansel 

Vice Presidents

Mark P. Bernier 
Cara Lynn Clabaugh 
David W. Deaner 
Claire M. Forbush 
Stephen C. Hawbaker 
Vickie L. Hoffheins 

Gary R. Holder  
Leslie R. Horn 
Helen A. Jahn 
John E. Kashner 
Beth W. Lesko 
Debra T. Little 

Jill M. McNeil 
Donald C. McVay 
Scott A. Miller 
Jeffrey A. Pottorff 
Edward C. Price, Jr. 
Gary W. Rappoldt 

Wendy D. Roth 
James E. Showvaker 
Debra T. Sites 
Rhonda L. Winterstein 
Merle J. Zehr 
Christina D. Ziser

Assistant Vice Presidents

Brian T. Adair  
Kevin L. Cook 
Andrée V. Dennis 
Carolyn M. Dull 
Kim D. Elmo 
Kimberly S. Flickinger 
Jacqueline A. Grasley 

Carolyn E. Groft 
Edward J. Groft 
Barbara D. Guise 
Jane E. Gwyn 
William A. Kauffman 
Susan R. Lang  

George F. Marguglio 
Laura L. McCusker 
Celeste M. Miller  
Shelby L. Pentz 
Karen J. Redding 
Susan M. Saylor 

Christine R. Settle 
Jody M. Shealer 
Lisa A. Smith 
Jeffrey B. Stambaugh 
Tina M. Steckler 
Ruby L. Sullivan

Russell Insurance Group, Inc.

Frank C. Russell, Jr. 
President & 
Chief Executive Officer

Daniel J. Coughlin 
Vice President

David W. Cathell 
Vice President & Treasurer

Lynda L. Glass 
Vice President & Secretary

2 01 3 A N N UA L R E V I E W   |    1 1

O FFI C E  LO C ATI O N S

ACNB Bank

Arendtsville 
Arendtsville Office 

101 Main Street 

Dillsburg 
Dillsburg Office 

3 Tristan Drive 

Lincoln Square Office 
2 Chambersburg Street 

McSherrystown 
McSherrystown Office 

Gettysburg, PA 17325

369 Main Street 

Arendtsville, PA 17303

Dillsburg, PA 17019

McSherrystown, PA 17344

Bendersville 
Bendersville Office 

East Berlin 
East Berlin Office 

101 North Main Street 

1677 Route 194 North 

Bendersville, PA 17306

East Berlin, PA 17316

Biglerville 
Biglerville Office 

Fairfield/Carroll Valley 
Fairfield/Carroll  

3459 Biglerville Road 

Valley Office 

Biglerville, PA 17307

4910 Fairfield Road 

Cashtown 
Franklin Township Drive-Up 

10 High Street 

Fairfield, PA 17320

Gettysburg 
Adams Commerce  

Cashtown, PA 17310

Center Office 

100 V-Twin Drive 

Gettysburg, PA 17325

Chambersburg 
Chambersburg Loan Office 

946 Lincoln Way East 

Chambersburg, PA 17201

North Gettysburg Office 
675 Old Harrisburg Road 

Gettysburg, PA 17325

West Gettysburg Office 
545 West Middle Street 

Gettysburg, PA 17325

Hanover 
North Hanover Office 

1127 Eichelberger Street 

Hanover, PA 17331

South Hanover Office 
865 Baltimore Street 

Hanover, PA 17331

Littlestown 
Littlestown Office 

444 West King Street 

Littlestown, PA 17340

New Oxford 
New Oxford Office 

318 Lincoln Way East 

New Oxford, PA 17350

Newville 
Newville Office 
39 Carlisle Road 

Newville, PA 17241

Spring Grove 
Spring Grove Office 

221 North Main Street 

Spring Grove, PA 17362

York Springs 
York Springs Office 

202 Main Street 

York Springs, PA 17372

Russell Insurance Group, Inc.

Westminster Office 
2526 West Liberty Road 

Germantown Office  
19500 Amaranth Drive, Suite C 

Westminster, MD 21157

Germantown, MD 20874

Russell Insurance Group, Inc. 
riginsurance.com 

Toll Free 1.800.289.4097

CO NTAC T  I N FO R M ATI O N

ACNB Bank 
acnb.com 

acnbbusiness.com

Customer Contact Center 
Toll Free 1.888.334.ACNB (2262)

24-Hour Telephone Banking Line 
Toll Free 1.888.338.ACNB (2262)

1 2   |    N E W H O R IZO N S B EC KO N

Forward-Looking Statements

In  addition  to  historical  information,  this  document  contains  forward-looking  statements.  Examples  of  forward-looking  statements 
include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, 
earnings  or  loss  per  share,  asset  mix  and  quality,  growth  prospects,  capital  structure,  and  other  financial  terms,  (b)  statements  of 
plans and objectives of management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in 
the Corporation’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as 
“believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon 
or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties 
such  as  local  economic  conditions,  competitive  factors,  and  regulatory  limitations.  Actual  results  may  differ  materially  from  those 
projected in the forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and experience 
to differ from those projected include, but are not limited to, the following: the effects of new laws and regulations, specifically the 
impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act; impacts of the new capital and liquidity requirements of 
the Basel III standards and other regulatory pronouncements, regulations and rules; ineffectiveness of the business strategy due to 
changes in current or future market conditions; future actions or inactions of the United States government, including effects of short- 
and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the 
federal government; the effects of economic deterioration and the prolonged economic malaise on current customers, specifically the 
effect of the economy on loan customers’ ability to repay loans; the effects of competition, and of changes in laws and regulations on 
competition, including industry consolidation and development of competing financial products and services; interest rate movements; 
difficulties  in  integrating  and  operating  distinct  business  operations,  including  information  technology  difficulties;  challenges  in 
establishing  and  maintaining  operations  in  new  markets;  volatilities  in  the  securities  markets;  and,  slow  economic  conditions.  We 
caution readers not to place undue reliance on these forward-looking statements. They only reflect management’s analysis as of this 
date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please 
carefully review the risk factors described in other documents the Corporation files from time to time with the Securities and Exchange 
Commission, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Please also carefully review any Current 
Reports on Form 8-K filed by the Corporation with the Securities and Exchange Commission.

16 LINCOLN SQUARE  • PO BOX 3129  • GETTYSBURG, PA 17325  • ACNB.COM