A HISTORY OF COMMITMENT
2018 ANNUAL REVIEW
OUR VISION
To be the independent financial services provider
of choice in the core markets served by building
relationships and finding solutions.
The Great Reunion of 1913. Reproducing a historic photograph
of Gettysburg’s Lincoln Square at the time of the 50th
Anniversary of the Battle of Gettysburg in 1913, this wall
mural was unveiled in the Atrium of the ACNB Corporation
Operations Center in May 2018. The mural depicts the building
constructed in 1908 by The First National Bank of Gettysburg, a
predecessor financial institution, on the founding site of ACNB
Corporation’s banking subsidiary, now ACNB Bank, in 1857.
Report to
Shareholders
A history of commitment distinguishes ACNB
Corporation and its subsidiaries. A history
unbroken and continuous, as founded in
1857. Circles of commitment between our
organization and its shareholders, employees,
customers, and communities served. This
commitment is central to ACNB Corporation’s
vision and its mission for the subsidiaries of
ACNB Bank and Russell Insurance Group, Inc.
A RECORD YEAR IN 2018
For the year ended December 31, 2018, ACNB Corporation
reported record financial results with net income of
$21,748,000 or $3.09 per share. In comparison to the
prior year, this is an increase of $11,960,000 or 122.2%.
Net income for the year ended December 31, 2017, was
$9,788,000 or $1.50 per share.
The primary driver of this significant increase in net
income was the first full year of combined banking
operations and positive momentum experienced
following the acquisition of New Windsor Bancorp, Inc.
and its wholly-owned subsidiary, New Windsor State
Bank, effective July 1, 2017. Also contributing to the
Corporation’s strong 2018 financial performance was
enhanced revenue growth attributable to subsidiary
activities through both ACNB Bank Wealth Management
and Russell Insurance Group, Inc. To a lesser degree,
the higher net income reported for 2018 was a result of
merger-related expenses in 2017 and organic net revenue
growth in 2018, aided by a lower effective tax rate due to
tax reform under the Tax Cuts and Jobs Act which took
effect on January 1, 2018.
Similar to other financial holding companies of community
banks, the principal component of ACNB Corporation’s
net income is net interest income. This fundamental
source of revenue is the income derived from the interest
earned on loans and investments, less the interest paid on
deposits and borrowings. Net interest income is impacted
by changes in interest rates, the volume of interest
earning assets and interest bearing liabilities, and the
composition of these assets and liabilities. By its inherent
nature, this income source is predominantly influenced by
market interest rates, local economic conditions, stock
market impacts, and competitive market dynamics.
Net interest income totaled $57,095,000 for 2018, as
compared to $46,352,000 for 2017. This year-over-year
increase of $10,743,000, or 23.2%, was primarily due to
higher loan volume including a full year of interest income
on loans acquired through the New Windsor Bancorp, Inc.
transaction in 2017.
During 2018, the Corporation was challenged given
the interest rate environment to balance customer
expectations and the need to control the cost of funding
loan growth. While the Federal Reserve’s Open Market
Committee raised the Fed Funds Rate four times for a
total of 100 basis points during the year to 2.50%, there
was no corresponding increase in longer term market
interest rates. As a result, the competitive marketplace
caused interest rates on loans to be restrained, while there
was pressure for increased interest rates on deposits.
With record financial results in 2018, ACNB Corporation’s
return on average assets and return on average equity
were 1.34% and 13.62%, respectively, as of December 31,
2018. These ratios compare very favorably to the
Corporation’s return on average assets of 0.69% and
return on average equity of 7.12% as of December 31,
2017, reinforcing the accretive impact of the New Windsor
Bancorp, Inc. transaction.
At December 31, 2018, ACNB Corporation’s total
assets were $1.6 billion. Total loans outstanding were
$1,302,465,000 at year-end 2018, up $58,295,000,
or 4.7%, from December 31, 2017, primarily in the
commercial loan portfolio, despite the generally slower
economic conditions and continued intense competition
during 2018 in the Corporation’s markets. Total deposits
were $1,348,092,000 at December 31, 2018. Year over
year, total deposits rose by $49,600,000, or 3.8%,
since December 31, 2017, with significant growth in
transaction accounts.
SHAREHOLDER DIVIDENDS & EQUITY
A key area of strength and differentiation for ACNB
Corporation is its commitment to shareholders. This is
evidenced by the Corporation’s history of paying a solid
and stable quarterly cash dividend on its common stock
for decades through times of both economic expansion
and recession. In 2018, ACNB Corporation shareholders
were rewarded with a 15% increase in the quarterly cash
dividend amount from $0.20 per share to $0.23 per
share effective with the payment of the cash dividend
on June 15, 2018—resulting in a total dividend paid of
$0.89 per share for the year. Aggregate dividends paid
to all shareholders totaled $6,261,000 during 2018, which
is an increase of more than $1,000,000 over the prior
year. In 2017, ACNB Corporation paid an $0.80 dividend
per share for total dividends paid to shareholders in the
amount of $5,233,000. A portion of the increase in total
dividends paid in 2018 was a result of new shares issued
effective with the acquisition of New Windsor Bancorp,
Inc. on July 1, 2017.
At December 31, 2018, total stockholders’ equity was
$168,137,000. Compared to $153,966,000 at December 31,
2017, this is an increase of $14,171,000, or 9.2%, due to
earnings retained in capital in 2018 and new shares of
common stock primarily from dividend reinvestment.
Fundamental to ongoing capital enhancement is
sustained earnings growth year over year.
The ACNB Corporation Dividend Reinvestment and
Stock Purchase Plan offers registered shareholders
the opportunity to purchase additional shares of the
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| ACNB CORPORATION 2018 ANNUAL REVIEW
3
ACNB CORPORATION 2018 ANNUAL REVIEW | wholly-owned subsidiary, Russell Insurance Group, Inc.
ACNB Bank’s community banking operations in the
Maryland market are branded as NWSB Bank, A Division
of ACNB Bank, and all ACNB Bank customers can
conduct business at any of the 29 community banking
offices located in Pennsylvania and Maryland. The
Corporation’s commitment to the community banking
model is predicated upon the continued reinvestment
of depositors’ dollars in loans to others for the economic
benefit of the communities served.
On July 25, 2018, ACNB Bank opened the Hunt Valley
Loan Office in Baltimore County, Maryland, which is a
natural extension of the Bank’s footprint. This area’s
vibrant and growing business sector, coupled with
experienced commercial lenders, provided a strategic
opportunity to leverage the Bank’s ability to contribute to
the success of mid-sized companies and small businesses
through proven customer relationship management and
competitive products and services.
A new initiative to grow core deposits and to build
customer relationships was launched in October 2018.
With the introduction of Advantage Rewards Checking
for personal customers, ACNB Bank furthered its
commitment to serving the financial needs of customers
while also providing benefits and rewards to assist
customers in their daily lives. Advantage Rewards
Checking benefits include cell phone protection, personal
identity theft assistance, roadside assistance, travel
accidental death insurance, and savings on pharmacy,
vision and hearing services. Plus, there are money-saving
discounts from national retailers. But, most importantly,
ACNB Bank worked with local businesses to provide Bank
customers with rewards for shopping and dining locally—
all accessible via a convenient mobile app.
Competition remains keen in the banking industry for
both loans and deposits. This competition encompasses
local banks and credit unions, nonbank entities, and online
providers of financial services. As with all community
banks, the growth and quality of ACNB Bank’s loan
and deposit portfolios is basic to the ongoing success
of the organization and its commitment to safety and
soundness for the benefit of all constituencies.
ACNB Bank employees also demonstrate their
commitment every day through volunteerism and
community involvement. In 2018, the Bank’s employees
supported 186 community organizations by collectively
contributing more than 7,000 volunteer hours in the
Bank’s market areas. The community banking offices
served as collection points for toys, school supplies, and
food items to benefit local community organizations.
Additionally, ACNB Bank employees delivered financial
literacy presentations in 2018 to over 1,000 students and
adults, educating them on the importance of developing
sound financial skills for life.
WEALTH MANAGEMENT
Effective January 1, 2018, ACNB Bank introduced the
Wealth Management Division composed of Trust &
Investment Services staff and Wealth Advisors. Trust
& Investment Services staff provide fiduciary, estate,
investment and related services to clients. Assets under
management totaled $231,514,000 at December 31, 2018,
compared to $224,056,000 at December 31, 2017.
Through a third-party relationship, ACNB Bank offers
retail brokerage services, including non-deposit
investment products, through the brands of ACNB
Wealth Advisors and Windsor Wealth Advisors. Assets
under management in the brokerage portfolio totaled
$109,982,000 at December 31, 2018, compared to
$102,689,000 at December 31, 2017.
Total revenues from fiduciary, investment management
and brokerage activities were $2,364,000 for the year
ended December 31, 2018, up 17.5% in comparison to
the year ended December 31, 2017, due to new business
development and the higher levels of assets under
management in the Wealth Management Division.
RUSSELL INSURANCE GROUP, INC.
Russell Insurance Group, Inc., the insurance subsidiary
of ACNB Corporation, is a full-service insurance agency
offering a broad range of property, casualty, and life
and health insurance to both commercial and personal
clients through licenses in 44 states. The agency is based
in Westminster, Carroll County, Maryland. It also conducts
business at office locations in Germantown, Montgomery
County, and Jarrettsville, Harford County, Maryland.
Revenues from this subsidiary’s commissions from
insurance sales is the most significant source of other
income for ACNB Corporation. Commissions from
insurance sales totaled $5,550,000 for the year of 2018,
as compared to $5,024,000 for the year of 2017. The
year-over-year rise of 10.5% is primarily attributable to
increased commercial and personal lines commission
income and higher contingent commissions received by
the agency in 2018.
IN CLOSING
The Great Reunion of 1913 was the largest American Civil
War veteran reunion ever. The Union and Confederate
flags flew side by side as more than 50,000 Civil War
veterans convened in Gettysburg to commemorate the
50th Anniversary of the Battle of Gettysburg in July
1913. This event symbolizes the commitment of our
nation to the ideals of equality and liberty for all citizens.
Today, the mural at the Corporation’s Operations Center
reproducing this time past on Gettysburg’s Lincoln
Square serves as a tribute to these ideals, as well as
a reminder of ACNB Corporation’s long history of
commitment to its shareholders, employees, customers,
and communities served.
Commitment is a pledge dependent upon people. At
ACNB Corporation, we are indeed thankful for the
committed people who serve our customers every
business day and who provide oversight on our Board
of Directors. Likewise, we are grateful for your continued
investment, as shareholders, in ACNB Corporation’s
future as we pursue our vision to be the independent
financial services provider of choice in the core markets
served by building relationships and finding solutions.
Sincerely,
Frank Elsner, III
Chairman of the Board
James P. Helt
President & Chief Executive Officer
Lynda L. Glass
Executive Vice President/Secretary & Chief Governance Officer
David W. Cathell
Executive Vice President/Treasurer & Chief Financial Officer
ACNB CORPORATION EXECUTIVE OFFICERS
Executive Vice President/Secretary & Chief Governance Officer
Lynda L. Glass, President & Chief Executive Officer James P. Helt,
Chairman of the Board Frank Elsner, III, Executive Vice President/
Treasurer & Chief Financial Officer David W. Cathell.
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, 153,272 new shares of ACNB Corporation
common stock, totaling approximately $3,300,000 in
plan investments, have been issued to plan participants as
a result of both dividend reinvestment and voluntary cash
purchases, which continue to fortify the Corporation’s
equity position.
ACNB BANK
ACNB Corporation’s community banking subsidiary,
ACNB Bank, operates in both southcentral Pennsylvania
and, as of July 1, 2017, in northern Maryland with the
completion of the acquisition of New Windsor Bancorp,
Inc. of Taneytown, Maryland, and its wholly-owned
subsidiary, New Windsor State Bank. This strategic
market expansion across the Mason-Dixon Line resulted
in entry to the desirable northern Maryland market of
Carroll County adjacent to the Bank’s Pennsylvania
footprint and in proximity to the Corporation’s other
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| ACNB CORPORATION 2018 ANNUAL REVIEWACNB CORPORATION 2018 ANNUAL REVIEW | Our Profile
and Geography
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.
Originally founded in 1857, ACNB Bank serves its marketplace with banking and
wealth management services, including trust and retail brokerage, via a network
of 22 community banking offices, located in the four southcentral Pennsylvania
counties of Adams, Cumberland, Franklin and York, as well as loan offices in
York, PA, and Hunt Valley, MD. As a division of ACNB Bank, NWSB Bank serves
its marketplace via a network of seven community banking offices located in
Carroll County, MD.
Russell Insurance Group, Inc. is a full-service insurance agency with licenses in 44
states. The agency offers a broad range of commercial and personal insurance
lines through office locations in Westminster, Germantown and Jarrettsville, MD.
CUMBERLAND
FRANKLIN
ADAMS
YORK
PENNSYLVANIA
WASHINGTON
CARROLL
MARYLAND
FREDERICK
BALTIMORE
HARFORD
HOWARD
MONTGOMERY
LOCATIONS
| ACNB Corporation Operations Center
| ACNB Bank
| NWSB Bank
| Russell Insurance Group, Inc.
| Loan Office
Visit acnb.com and riginsurance.com for specific locations.
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| ACNB CORPORATION 2018 ANNUAL REVIEWACNB CORPORATION 2018 ANNUAL REVIEW | FINANCIAL HIGHLIGHTS
FINANCIAL OVERVIEW
2018
2017
2016
TOTAL ASSETS | In millions of dollars
TOTAL DEPOSITS | In millions of dollars
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
$57,095,000
$46,352,000
$36,566,000
21,748,000
6,261,000
9,788,000*
10,869,000
5,233,000
4,840,000
$ 3.09
0.89
23.86
$ 1.50
0.80
21.92
$ 1.80
0.80
19.80
$1,647,724,000
$1,595,432,000
$1,206,320,000
1,302,465,000
1,244,170,000
907,910,000
1,348,092,000
1,298,492,000
967,621,000
Total Stockholders’ Equity
168,137,000
153,966,000
120,061,000
KEY RATIOS
Return on Average Assets
Return on Average Equity
Dividend Payout
Average Stockholders’ Equity to Average Assets
1.34%
13.62%
28.79%
9.85%
0.69%
7.12%
53.46%
9.69%
0.93%
9.17%
44.53%
10.10%
2014
2015
2016
2017
2018
2014
2015
2016
2017
2018
$1,089.8
$1,147.9
$1,206.3
$1,595.4
$1,647.7
$844.9
$913.0
$967.6
$1,298.5
$1,348.1
TOTAL LOANS | In millions of dollars
TOTAL STOCKHOLDERS’ EQUITY | In millions of dollars
2014
2015
2016
2017
2018
2014
2015
2016
2017
2018
$799.3
$853.0
$907.9
$1,244.2
$1,302.5
$110.0
$114.7
$120.1
$154.0
$168.1
NET INCOME | In millions of dollars
BOOK VALUE PER SHARE | In dollars
*Without the nonrecurring expenses incurred as a result of the acquisition and integration of New Windsor Bancorp, Inc., net of the
corresponding tax impact at the marginal tax rate, in the amount of $3,010,000 and the one-time charge due to the Tax Cuts and Jobs
Act in the amount of $1,700,000, ACNB Corporation’s net income for the year ended December 31, 2017, would have been $14,498,000.
2014
$10.3
2015
$11.0
2016
2017
2018
2014
2015
2016
2017
2018
$10.9
$9.8/$14.5*
$21.7
$18.29
$18.99
$19.80
$21.92
$23.86
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| ACNB CORPORATION 2018 ANNUAL REVIEWACNB CORPORATION 2018 ANNUAL REVIEW | CONSOLIDATED STATEMENTS OF CONDITION
Dollars in thousands, except per share data
CONSOLIDATED STATEMENTS OF INCOME
Dollars in thousands, except per share data
ASSETS
Cash and due from banks
Interest bearing deposits with banks
Total Cash and Cash Equivalents
Equity securities with readily determinable fair values
Debt securities available for sale
Securities held to maturity (fair value $26,911 in 2018 and $44,549 in 2017)
Loans held for sale
Loans, net of allowance for loan losses ($13,964 in 2018 and $13,976 in 2017)
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; 7,108,620 and 7,086,258
shares issued in 2018 and 2017, respectively; 7,046,020 and 7,023,658 shares outstanding in
2018 and 2017, respectively)
Treasury stock, at cost (62,600 shares in 2018 and 2017)
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
TOTAL STOCKHOLDERS’ EQUITY
DECEMBER 31
2018
$ 20,105
20,800
40,905
1,839
161,730
27,266
408
1,288,501
26,409
4,336
48,003
1,871
19,580
4,407
155
22,314
2017
$ 19,304
15,137
34,441
1,784
157,267
44,829
1,736
1,230,194
26,774
4,773
44,935
2,446
19,580
2,569
436
23,668
$ 1,647,724
$ 1,595,432
$ 302,394
1,045,698
1,348,092
34,648
83,516
13,331
$ 279,413
1,019,079
1,298,492
36,908
94,600
11,466
1,479,587
1,441,466
—
—
17,772
(728)
38,448
121,862
(9,217)
168,137
17,716
(728)
37,777
106,293
(7,092)
153,966
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$ 1,647,724
$ 1,595,432
See the consolidated financial statements and accompanying notes presented in the Corporation’s Annual Report on Form 10-K.
INTEREST INCOME
Loans, including fees
Securities
Taxable
Tax-exempt
Dividends
Other
TOTAL INTEREST INCOME
INTEREST EXPENSE
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
OTHER INCOME
Service charges on deposit accounts
Income from fiduciary, investment management and brokerage activities
Earnings on investment in bank-owned life insurance
Gain on life insurance proceeds
Net gains on sales or calls of securities
Net losses on equity 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
Other tax
Professional services
Supplies and postage
Marketing and corporate relations
FDIC and regulatory
Merger-related expenses
Intangible assets amortization
Foreclosed real estate expenses
Other operating expenses
TOTAL OTHER EXPENSES
INCOME BEFORE INCOME TAXES
PROVISION FOR INCOME TAXES
NET INCOME
PER SHARE DATA
Basic earnings
Cash dividends paid
YEARS ENDED DECEMBER 31
2018
$ 59,593
2017
$ 47,522
3,735
219
299
648
64,494
5,253
59
2,087
7,399
57,095
1,620
55,475
3,350
2,364
1,068
52
85
(296)
2,375
5,550
1,400
15,948
26,734
2,971
4,959
902
1,468
766
565
688
—
745
129
4,776
44,703
26,720
4,972
3,389
428
252
194
51,785
3,547
83
1,803
5,433
46,352
—
46,352
2,940
2,012
1,075
—
—
—
1,762
5,024
1,336
14,149
24,654
2,403
3,757
791
1,134
731
433
644
4,728
537
93
4,174
44,079
16,422
6,634
$ 21,748
$ 9,788
$3.09
$0.89
$ 1.50
$0.80
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| ACNB CORPORATION 2018 ANNUAL REVIEWACNB CORPORATION 2018 ANNUAL REVIEW | Boards of Directors
ACNB CORPORATION AND ACNB BANK
Officers
ACNB CORPORATION
Richard L. Alloway II, Esquire
Attorney
Alloway Law Office
Scott L. Kelley, Esquire
Partner
Barley Snyder LLP
Daniel W. Potts
Client Executive
DXC Technology
Frank Elsner, III
Owner & Managing Director
ODT Global, LLC
Chairman of the Board
ACNB Corporation and ACNB Bank
James P. Helt
President & Chief Executive Officer
ACNB Corporation and ACNB Bank
Todd L. Herring
Market Director
Pivot Health Solutions
James J. Lott
President
Bonnie Brae Fruit Farms, Inc.
Donna M. Newell
President & Chief Executive Officer
NTM Engineering, Inc.
J. Emmett Patterson
Owner & President
JDCS Enterprise &
Fry Guy Corporation
Thomas A. Ritter
Retired President &
Chief Executive Officer
ACNB Corporation and ACNB Bank
Marian B. Schultz
Retired Dean
Shippensburg University
D. Arthur Seibel, Jr.
Chief Operating Officer
Springdale Preparatory School
David L. Sites
Owner
Sites Realty, Inc. and Realty
Leasing & Management Co.
Alan J. Stock
Retired Owner & President
Eicholtz Company
Vice Chairman
ACNB Corporation and ACNB Bank
James E. Williams
President
C.E. Williams Sons, Inc.
Managing Partner
Frantz Plumbing
RUSSELL INSURANCE GROUP, INC.
Thomas A. Ritter
Chairman of the Board
Frank Elsner, III
Vice Chairman
Lynda L. Glass
James P. Helt
Scott L. Kelley, Esquire
Daniel W. Potts
Frank C. Russell, Jr.
Frank Elsner, III
Chairman of the Board
James P. Helt
President & Chief Executive Officer
Lynda L. Glass
Executive Vice President/Secretary
& Chief Governance Officer
David W. Cathell
Executive Vice President/Treasurer
& Chief Financial Officer
ACNB BANK
Frank Elsner, III
Chairman of the Board
James P. Helt
President & Chief Executive Officer
David W. Cathell
Executive Vice President/Treasurer
& Chief Financial Officer
Lynda L. Glass
Executive Vice President/Secretary
and Chief Risk & Governance Officer
Laurie A. Laub
Executive Vice President/
Chief Credit & Operations Officer
Tom N. Rasmussen
Executive Vice President/
Market President
M. Neil Brownawell, II
Senior Vice President/
Baltimore Market Executive
Lisa A. Monthley
Senior Vice President/
Regional Sales Manager
Douglas A. Seibel
Executive Vice President/
Chief Lending & Revenue Officer
Sandra A. Deaner
Senior Vice President/
Human Resources Manager
Michelle N. Paulnock
Senior Vice President/
Information Systems Manager
Thomas R. Stone
Executive Vice President/
Chief Community Banking Officer
Kathy S. Hansel
Senior Vice President/
Principal Accounting Officer
Lauren L. Shutt
Senior Vice President/
Risk Manager
Mark P. Bernier
Senior Vice President/
Wealth Management Officer
Andrew P. Heck
Senior Vice President/
Regional Commercial
Lending Manager
Wayne A. Steinour
Senior Vice President/
Agribusiness Lending Manager
EXECUTIVE MANAGEMENT AND BOARDS OF DIRECTORS
FRONT | ACNB Bank Executive Management: Executive
Vice President /Chief Community Banking Officer
Thomas R. Stone, Executive Vice President/Chief Credit
& Operations Officer Laurie A. Laub, Executive Vice
President/Treasurer & Chief Financial Officer David W.
Cathell, President & Chief Executive Officer James P. Helt,
Executive Vice President/Chief Lending & Revenue Officer
Douglas A. Seibel, Executive Vice President/Secretary and
Chief Risk & Governance Officer Lynda L. Glass, Executive
Vice President/Market President Tom N. Rasmussen.
BACK | ACNB Corporation and ACNB Bank Boards
of Directors: J. Emmett Patterson, Donna M. Newell,
James E. Williams, Scott L. Kelley, D. Arthur Seibel, Jr.,
James J. Lott, Chairman of the Board Frank Elsner, III,
Vice Chairman Alan J. Stock, Daniel W. Potts, Thomas A.
Ritter, David L. Sites, Todd L. Herring, Richard L. Alloway II,
Marian B. Schultz.
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| ACNB CORPORATION 2018 ANNUAL REVIEWACNB CORPORATION 2018 ANNUAL REVIEW | Officers / CONTINUED
First Vice Presidents
Karen B. Arthur
Barry C. Dillman
Vice Presidents
Brian T. Adair
Daniel K. Baer
Redmond C. Beam
Duane E. Bock
Dawn M. Bornman
Cara Lynn Clabaugh
Kevin L. Cook
David W. Deaner
Carolyn M. Dull
Assistant Vice Presidents
Eric L. Alleman
Susan L. Behm
Tonya A. Boczek
Amber R. Bowers
Melissa A. Bremer
Andree V. Dennis
Kacie N. Dillman
Kellie J. Doherty
Shawn D. Epling
Scott E. Hartlaub
Kevin J. Hayes
Dennis R. Hollinger
Laura L. McCusker
Gary W. Rappoldt
Merle J. Zehr
Tiffany M. Faust
Michele K. Ford
Gregg A. Gillespie
Barbara D. Guise
Vickie L. Hoffheins
Thomas A. Holmes
Grant J. Holub
John D. Husser
John E. Kashner
Heather N. Gormont
Jacqueline A. Grasley
Nancy L. Hamilton
Ginny L. Huntsberry
Holly A. Keffer
Douglas R. Lindsay
Michael E. Lippy
George F. Marguglio
Julie A. Marshall
Frank E. Koser II
Gregory S. Liegey
Nathan E. Lightner
Leslie R. Metzger
Celeste M. Miller
Scott A. Miller
Lauren J. Muzzy
Timothy H. Owings
Adnan Pasic
Joey L. Martin
Heather D. Masgalas
Sylvia E. Mason
Lauren E. McMullen
Lisa M. Miller
Zachary K. Pretty
Susan M. Saylor
Sara M. Sciarretta
Sonali J. Shah
Jacob R. Price
Michael W. Rittase
Patrick O. Sease
Christine R. Settle
James E. Showvaker
Kathleen P. Wagner
Ryan M. Wilhelm
Rhonda L. Winterstein
Christina D. Ziser
Angela M. Sibert
Lisa A. Smith
Anthony A. Spangler
Jeffrey B. Stambaugh
Morgan A. Stevenson
Ruby L. Sullivan
Brian C. Taylor
Steven M. Williams
Tracy L. Wolf
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
Contact Information
ACNB BANK
acnb.com
NWSB BANK
nwsbbank.com
Customer Contact Center
Toll Free 1.888.334.ACNB (2262)
Customer Contact Center
Toll Free 1.844.822.NWSB (6972)
24-Hour Telephone Banking Line
Toll Free 1.888.338.ACNB (2262)
24-Hour Telephone Banking Line
Toll Free 1.866.276.4979
RUSSELL INSURANCE GROUP, INC.
riginsurance.com
Toll Free 1.800.289.4097
Shareholder Information
2019 ANNUAL MEETING
The Annual Meeting of Shareholders
for ACNB Corporation will be held on
Tuesday, May 7, 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 at
investor.acnb.com.
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
P.O. 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 at
sec.gov/edgar.shtml.
TRANSFER AGENT, REGISTRAR
AND DIVIDEND DISBURSING AGENT
Computershare Shareholder Services
P.O. Box 505000
Louisville, KY 40233-5000
computershare.com/investor
For shareholder inquiries or information
regarding the ACNB Corporation
Dividend Reinvestment and Stock
Purchase Plan, call Computershare
toll free at 1.800.368.5948.
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 governmental and fiscal
policies, as well as legislative and regulatory changes; the effects of new laws and regulations, specifically the impact of the Tax Cuts and Jobs
Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act; impacts of the capital and liquidity requirements of the Basel III
standards; the effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial
Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future
market conditions; future actions or inactions of the United States government, including the 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
conditions 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; the risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities,
and interest rate protection agreements, as well as interest rate risks; difficulties in acquisitions and integrating and operating acquired business
operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; the effects of
technology changes; volatilities in the securities markets; the effect of general economic conditions and more specifically in the Corporation’s
market areas; the failure of assumptions underlying the establishment of reserves for loan losses and estimations of values of collateral and various
financial assets and liabilities; acts of war or terrorism; disruption of credit and equity markets; the ability to manage current levels of impaired
assets; the loss of certain key officers; the ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s
intellectual property rights; continued relationships with major customers; and, potential impacts to the Corporation from continually evolving
cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses.
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, Quarterly Reports on Form 10-Q, and any Current Reports on Form 8-K.
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ACNB CORPORATION 2018 ANNUAL REVIEW || ACNB CORPORATION 2018 ANNUAL REVIEW OUR MISSION
ACNB Corporation, the financial holding company
for ACNB Bank and Russell Insurance Group,
Inc., strives to serve the financial and insurance
needs of consumers, businesses and other
entities through the multiple delivery channels
of these subsidiaries. In all of its endeavors, the
Corporation seeks to maintain its strength and
independence as a leader in the markets served.
Our management is dedicated to maximizing
long-term investment value to its shareholders
by means of:
• Providing and marketing quality financial
products and services designed to focus on
the customer’s objectives;
• Ensuring a productive, encouraging and
growth-oriented work environment for
staff members;
• Adopting and leveraging new technologies for
the benefit of customer service, operational
efficiencies, and/or competitive position;
• Managing human and capital resources for
the dual purpose of effectively serving and
satisfying customers’ needs and enhancing
the organization’s profitability; and,
• Contributing to the economic vitality and
overall well-being of the communities served
by actively participating as a responsible and
caring corporate citizen.
Fundamental to ACNB Corporation’s performance
is the commitment to integrity and compliance
in business conduct, as well as the recognition
that our business is one built upon relationships
and trust.
COMMITTED TO YOU
ACNB.COM | 16 Lincoln Square, PO Box 3129, Gettysburg, PA 17325