Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) ACNB Corporation operates ACNB Bank and Russell Insurance Group, Inc., expanding services in Pennsylvania and Maryland through the 2020 FCBI acquisition, while navigating a competitive and highly regulated market - ACNB Corporation is the financial holding company for **ACNB Bank** and **Russell Insurance Group, Inc. (RIG)**, providing banking and insurance services across multiple states[8](index=8&type=chunk) - On January 11, 2020, ACNB acquired **Frederick County Bancorp, Inc. (FCBI)** for **$57.9 million**, issuing **1,590,547 shares** of common stock[10](index=10&type=chunk)[63](index=63&type=chunk) ACNB Bank Key Financials (as of Dec 31, 2020) | Metric | Amount (in millions) | | :--- | :--- | | Total Assets | $2,541 | | Total Gross Loans | $1,638 | | Total Deposits | $2,193 | | Total Equity Capital | $252 | - The company faces **intense competition** from various financial institutions, many with larger lending limits and greater market share[19](index=19&type=chunk) - The Corporation is subject to **extensive federal and state regulations**, impacting operations, capital requirements, and compliance costs[20](index=20&type=chunk)[24](index=24&type=chunk)[33](index=33&type=chunk) [Item 1A. Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from COVID-19 impacts, credit portfolio, interest rate volatility, competition, cybersecurity, and evolving regulations including CECL - The **COVID-19 pandemic** has adversely impacted business and financial results, with its ultimate impact remaining highly uncertain, potentially affecting revenue, operations, and capital ratios[65](index=65&type=chunk)[66](index=66&type=chunk) - Participation in the **SBA's Paycheck Protection Program (PPP)** exposes ACNB to litigation risks and potential non-honor of loan guarantees by the SBA[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) - The company is subject to **significant credit risk**, with approximately **68% of its loan portfolio** in commercial and industrial, construction, and commercial real estate loans, which generally carry higher default risk[74](index=74&type=chunk) - ACNB's earnings are **highly sensitive to interest rate changes**, which can materially impact net interest income, loan origination, and the fair value of financial assets[72](index=72&type=chunk)[73](index=73&type=chunk) - The company faces **substantial competition** in lending and deposit-gathering from other financial institutions, many with greater resources and wider geographic presence[77](index=77&type=chunk)[78](index=78&type=chunk) - The upcoming implementation of the **Current Expected Credit Loss (CECL) model** is expected to materially affect the allowance for loan losses, potentially requiring a significant increase and creating more volatility[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 1B. Unresolved Staff Comments](index=26&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - No unresolved staff comments are reported[148](index=148&type=chunk) [Item 2. Properties](index=26&type=section&id=Item%202.%20Properties) As of December 31, 2020, ACNB Bank operated 32 community banking offices and several loan production offices across Pennsylvania and Maryland, with most locations owned - As of December 31, 2020, ACNB Bank operated **32 community banking offices** and loan production offices in Pennsylvania and Maryland, with **23 owned** and **13 leased** bank office locations[148](index=148&type=chunk) [Item 3. Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company states that as of December 31, 2020, there were no material pending legal proceedings that would adversely affect its financial condition or operations - As of December 31, 2020, there were **no material pending legal proceedings** against ACNB or its subsidiaries, beyond ordinary routine litigation incidental to the business[149](index=149&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[150](index=150&type=chunk) Part II [Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) ACNB Corporation's common stock trades on NASDAQ under ACNB, with **8,709,393 shares outstanding** as of December 31, 2020, and the company has a stock repurchase program and a Dividend Reinvestment and Stock Purchase Plan - ACNB Corporation's common stock trades on NASDAQ under the symbol **ACNB**, with **8,709,393 shares outstanding** and approximately **2,604 shareholders** of record as of December 31, 2020[151](index=151&type=chunk) - A stock repurchase program, approved in October 2008, had **57,400 shares remaining** for purchase at year-end 2020, superseded by a new plan approved in February 2021 to repurchase up to **261,000 shares**[151](index=151&type=chunk)[156](index=156&type=chunk) - The company offers a **Dividend Reinvestment and Stock Purchase Plan**, through which **190,611 shares** have been issued as of December 31, 2020[154](index=154&type=chunk) [Item 6. Selected Financial Data](index=28&type=section&id=Item%206.%20Selected%20Financial%20Data) The company presents a five-year summary of key financial data, showing **net income of $18.4 million** in 2020, a decrease from 2019, with **total assets growing to $2.56 billion** due to the FCBI acquisition Selected Financial Data (2019-2020) | Metric (in thousands, except per share data) | 2020 | 2019 | | :--- | :--- | :--- | | **Income Statement Data** | | | | Net Interest Income | $73,068 | $59,418 | | Provision for Loan Losses | $9,140 | $600 | | Net Income | $18,394 | $23,721 | | **Balance Sheet Data (Year-End)** | | | | Total Assets | $2,555,362 | $1,720,253 | | Loans, net | $1,617,558 | $1,258,766 | | Deposits | $2,185,525 | $1,412,260 | | Stockholders' Equity | $257,972 | $189,516 | | **Common Share Data** | | | | Earnings per share — basic | $2.13 | $3.36 | | Cash dividends declared | $1.00 | $0.98 | | Book value per share | $29.62 | $26.77 | | **Profitability Ratios** | | | | Return on average assets | 0.78% | 1.40% | | Return on average equity | 7.39% | 13.33% | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant impact of the FCBI acquisition and COVID-19 on 2020 financial results, noting a decrease in net income to **$18.4 million** due to higher loan loss provisions and merger expenses, despite growth in net interest income and assets [Executive Overview](index=29&type=section&id=Executive%20Overview) The 2020 financial results were significantly shaped by the FCBI acquisition and the COVID-19 pandemic, leading to a **22.5% decrease in GAAP net income** to **$18.4 million**, primarily due to merger expenses and increased loan loss provisions GAAP vs. Non-GAAP Performance (2019-2020) | Metric (in thousands, except per share) | 2020 | 2019 | | :--- | :--- | :--- | | **Net Income (GAAP)** | **$18,394** | **$23,721** | | Merger-related expenses, net of tax | $4,639 | $595 | | **Net Income (Non-GAAP)** | **$23,033** | **$24,316** | | Basic EPS (GAAP) | $2.13 | $3.36 | | Basic EPS (Non-GAAP) | $2.67 | $3.44 | - Net interest margin decreased to **3.35%** in 2020 from **3.81%** in 2019, while net interest income increased to **$73.1 million** from **$59.4 million** over the same period[170](index=170&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Net interest income increased by **23.0% to $73.1 million** in 2020 due to the FCBI acquisition and PPP loans, despite a **46 basis point decline in net interest margin**, while the provision for loan losses surged to **$9.1 million** and other expenses rose **28.4%** due to merger costs and workforce expansion - Net interest income increased by **$13.7 million (23.0%)** in 2020, driven by higher loan volume from the FCBI acquisition and PPP lending, though the net interest margin decreased from **3.81%** in 2019 to **3.35%** in 2020[180](index=180&type=chunk)[183](index=183&type=chunk) - The provision for loan losses increased significantly to **$9,140,000** in 2020 from **$600,000** in 2019, primarily due to specific charge-offs and a **$4,100,000 qualitative factor** for COVID-19 risks[189](index=189&type=chunk) - Other income increased by **$1.8 million (9.7%)** in 2020, largely due to a **$1.6 million increase** in income from sold mortgages, offsetting a **3.4% decrease** in insurance commissions[190](index=190&type=chunk)[192](index=192&type=chunk) - Other expenses increased by **28.4%** in 2020, driven by a **22.5% rise** in salaries and employee benefits due to the merger and **$5,965,000** in merger-related expenses[196](index=196&type=chunk)[203](index=203&type=chunk) [Financial Condition](index=37&type=section&id=Financial%20Condition) Total assets grew **48.5% to $2.56 billion** at year-end 2020, driven by the FCBI acquisition and PPP loans, with the allowance for loan losses increasing to **1.23% of total loans** to reflect economic uncertainty, while non-performing assets remained stable - Total loans increased by **$365.2 million (28.7%)** in 2020, primarily due to the FCBI acquisition and active participation in the Paycheck Protection Program (PPP)[217](index=217&type=chunk) - As of December 31, 2020, the Corporation originated approximately **1,440 PPP loans** totaling **$160.9 million**, generating approximately **$6 million** in fee income before costs[219](index=219&type=chunk)[453](index=453&type=chunk) Non-Performing Assets (as of Dec 31) | Metric (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Total Non-Performing Loans | $7,896 | $5,138 | | Total Non-Performing Assets | $7,896 | $5,502 | | Non-performing loans to total loans | 0.48% | 0.40% | | Non-performing assets to total assets | 0.31% | 0.32% | - The allowance for loan losses increased to **$20.2 million**, or **1.23% of total loans**, at year-end 2020, up from **$13.8 million**, or **1.09% of loans**, at year-end 2019[243](index=243&type=chunk) - As of December 31, 2020, the company had **48 temporary COVID-19 related loan modifications** with principal balances totaling **$36.1 million**[247](index=247&type=chunk)[248](index=248&type=chunk) - Total shareholders' equity increased to **$258.0 million** at year-end 2020 from **$189.5 million** in 2019, primarily due to the issuance of **$57.7 million** in common stock for the FCBI acquisition[262](index=262&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position, primarily funded by its core deposit base, supplemented by substantial borrowing capacity with the FHLB, and robust capital levels exceeding "well capitalized" thresholds - The company's primary liquidity source is its core deposit base, supplemented by **$847.9 million** in borrowing capacity from the FHLB of Pittsburgh, with **$791.9 million available** as of December 31, 2020[279](index=279&type=chunk) Bank Subsidiary Capital Ratios (as of Dec 31, 2020) | Ratio | 2020 Actual | Well Capitalized Minimum | | :--- | :--- | :--- | | Tier 1 leverage ratio | 9.01% | 5.00% | | Common Tier 1 capital ratio | 13.86% | 6.50% | | Tier 1 risk-based capital ratio | 13.86% | 8.00% | | Total risk-based capital ratio | 15.10% | 10.00% | - The company has unfunded commitments to extend credit of **$367.6 million** and standby letters of credit of **$8.1 million** as of December 31, 2020[284](index=284&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This disclosure is not required for smaller reporting companies like ACNB Corporation - Not required for smaller reporting companies[287](index=287&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=53&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for ACNB Corporation for 2020 and 2019, including the independent auditor's report and detailed notes on financial position, operations, equity, and cash flows - The independent auditor's report from RSM US LLP expresses an **unqualified opinion** and identifies the Allowance for Loan Losses (Qualitative Factors) and the Valuation of the Acquired Loan Portfolio as **Critical Audit Matters**[293](index=293&type=chunk)[298](index=298&type=chunk)[301](index=301&type=chunk) Consolidated Statement of Condition Highlights (as of Dec 31) | Account (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Total Cash and Cash Equivalents | $399,352 | $114,356 | | Loans, net | $1,617,558 | $1,258,766 | | Goodwill | $42,108 | $19,580 | | **Total Assets** | **$2,555,362** | **$1,720,253** | | Total Deposits | $2,185,525 | $1,412,260 | | Total Borrowings | $92,209 | $99,731 | | **Total Liabilities** | **$2,297,390** | **$1,530,737** | | **Total Stockholders' Equity** | **$257,972** | **$189,516** | Consolidated Statement of Income Highlights (Year Ended Dec 31) | Account (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Net Interest Income | $73,068 | $59,418 | | Provision for Loan Losses | $9,140 | $600 | | Total Other Income | $19,934 | $18,169 | | Total Other Expenses | $61,160 | $47,621 | | **Net Income** | **$18,394** | **$23,721** | - Note T details the acquisition of **Frederick County Bancorp, Inc. (FCBI)** on January 11, 2020, which resulted in **$22.5 million of goodwill** and the issuance of **1,590,547 shares** of ACNB common stock[553](index=553&type=chunk)[555](index=555&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=108&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - No changes in or disagreements with accountants are reported[578](index=578&type=chunk) [Item 9A. Controls and Procedures](index=108&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal control over financial reporting during the fourth quarter - The CEO and CFO concluded that the Corporation's **disclosure controls and procedures were effective** as of December 31, 2020[579](index=579&type=chunk)[580](index=580&type=chunk) - Management assessed and concluded that internal control over financial reporting was **effective** as of December 31, 2020, based on the **COSO 2013 framework**[586](index=586&type=chunk) [Item 9B. Other Information](index=110&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - No other information is reported for this item[588](index=588&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=111&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2021 definitive Proxy Statement - Information required by this item is **incorporated by reference** from the registrant's 2021 definitive Proxy Statement[589](index=589&type=chunk) [Item 11. Executive Compensation](index=111&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2021 definitive Proxy Statement - Information required by this item is **incorporated by reference** from the registrant's 2021 definitive Proxy Statement[591](index=591&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=111&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's 2021 definitive Proxy Statement, with **538,468 shares available** for future issuance under equity compensation plans as of December 31, 2020 - Information required by this item is **incorporated by reference** from the registrant's 2021 definitive Proxy Statement[592](index=592&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2020) | Plan Category | Number of securities to be issued upon exercise | Weighted-average exercise price | Number of securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | — | $ — | 538,468 | | Equity compensation plans not approved by security holders | — | $ — | — | | **Total** | **—** | **$ —** | **538,468** | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=111&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's 2021 definitive Proxy Statement - Information required by this item is **incorporated by reference** from the registrant's 2021 definitive Proxy Statement[594](index=594&type=chunk) [Item 14. Principal Accountant Fees and Services](index=111&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2021 definitive Proxy Statement - Information required by this item is **incorporated by reference** from the registrant's 2021 definitive Proxy Statement[595](index=595&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=112&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits filed as part of the Form 10-K report, including the independent auditor's report and various organizational and contractual documents - This section lists the financial statements filed with the report, including the Report of Independent Registered Public Accounting Firm, Consolidated Statements of Condition, Income, Comprehensive Income, Changes in Stockholders' Equity, Cash Flows, and Notes to Consolidated Financial Statements[596](index=596&type=chunk) - A list of exhibits filed with the report is provided, including various agreements, bylaws, compensation plans, and required certifications from the CEO and CFO[598](index=598&type=chunk)[599](index=599&type=chunk)[600](index=600&type=chunk) [Item 16. Form 10-K Summary](index=115&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no summary for this item - No Form 10-K summary is provided[601](index=601&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each classTrading Symbol Name of each exchange on which registered Common Stock, $2.50 par value per share ACNB The NASDAQ Stock Market, LLC FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number 1-35015 ACNB CORPORATION (Exact name of Registrant as specified in its charter) Pennsylvania 23-2233457 (State or other ...

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=2&type=section&id=ITEM%201%20-%20FINANCIAL%20STATEMENTS) The unaudited statements reflect significant balance sheet growth and a net loss due to the FCBI acquisition [Consolidated Statements of Condition](index=2&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CONDITION) Total assets grew to $2.18 billion, driven by the FCBI acquisition which increased loans and deposits Key Balance Sheet Items (in thousands) | Metric | March 31, 2020 | December 31, 2019 | March 31, 2019 | | :--- | :--- | :--- | :--- | | **Total Assets** | **$2,180,065** | **$1,720,253** | **$1,671,159** | | Loans, net | $1,590,187 | $1,258,766 | $1,287,315 | | Goodwill | $41,700 | $19,580 | $19,580 | | **Total Deposits** | **$1,811,357** | **$1,412,260** | **$1,367,058** | | Total Liabilities | $1,933,071 | $1,530,737 | $1,497,366 | | **Total Stockholders' Equity** | **$246,994** | **$189,516** | **$173,793** | [Consolidated Statements of Income](index=3&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The company reported a net loss of $1.22 million due to merger expenses and increased loan loss provisions Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Net Interest Income | $17,455 | $14,665 | | Provision for Loan Losses | $4,000 | $150 | | Total Other Income | $4,166 | $3,940 | | Merger related expenses | $5,965 | $0 | | Total Other Expenses | $19,457 | $11,261 | | **Net (Loss) Income** | **$(1,223)** | **$5,864** | | **Basic (loss) earnings per share** | **$(0.14)** | **$0.83** | [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash increased by $14.8 million, with operating and financing inflows offsetting investing activities Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2020 | | :--- | :--- | | Net Cash Provided by Operating Activities | $8,416 | | Net Cash (Used in) Investing Activities | $(5,120) | | Net Cash Provided by Financing Activities | $11,518 | | **Net Increase in Cash and Cash Equivalents** | **$14,814** | - The acquisition of FCBI provided a **net cash inflow of $35.3 million**, which was a major component of investing activities for the quarter[8](index=8&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Notes detail the FCBI acquisition, loan portfolio composition, credit quality, and COVID-19 pandemic impacts - On January 11, 2020, ACNB completed its acquisition of Frederick County Bancorp, Inc (FCBI), acquiring total assets of **$444.4 million**, including **$329.9 million in loans** and **$374.1 million in deposits**[23](index=23&type=chunk) - The FCBI acquisition resulted in the recording of **$22.1 million in goodwill** and the issuance of **1,590,547 shares** of its common stock as part of the transaction[24](index=24&type=chunk) - The company has deferred the implementation of the new **CECL accounting standard** (ASU 2016-13) to fiscal years beginning after December 31, 2022[22](index=22&type=chunk)[190](index=190&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=43&type=section&id=ITEM%202%20-%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) The Q1 2020 net loss was driven by merger expenses and a higher provision for loan losses due to a specific charge-off and COVID-19 [Results of Operations](index=44&type=section&id=Results%20of%20Operations) A $1.22 million net loss resulted from merger expenses and a higher loan loss provision, despite growth in net interest income - The net loss for Q1 2020 was primarily a result of **$5,965,000 in merger/system conversion related expenses** for the acquisition of FCBI[201](index=201&type=chunk)[208](index=208&type=chunk) - The provision for loan losses increased to **$4,000,000** in Q1 2020 from $150,000 in Q1 2019, driven by a **$2.0 million charge-off** and a **$1.5 million COVID-19 adjustment**[206](index=206&type=chunk) - Net interest margin decreased to **3.67%** for Q1 2020 from 3.93% in Q1 2019, impacted by a lower-yielding asset mix[204](index=204&type=chunk) [Financial Condition](index=48&type=section&id=Financial%20Condition) The FCBI acquisition drove a 26.7% increase in total assets to $2.18 billion, with strong regulatory capital ratios maintained - Loans outstanding increased by **26.2%** from December 31, 2019, to March 31, 2020, primarily attributable to the FCBI acquisition[224](index=224&type=chunk) - Total deposits increased by **28.3%** from December 31, 2019, to March 31, 2020, with deposits acquired from FCBI totaling approximately **$330 million**[254](index=254&type=chunk) - The banking subsidiary's capital ratios remain strong, with a **Tier 1 leverage ratio of 10.21%** and a **Total risk-based capital ratio of 14.86%**, both well above "well capitalized" requirements[274](index=274&type=chunk) [Loan Portfolio and COVID-19 Response](index=33&type=section&id=Loan%20Portfolio%20and%20COVID-19%20Response) The company responded to COVID-19 by modifying $134.4 million in loans and actively participating in the Paycheck Protection Program Loan Modifications as of March 31, 2020 | Type of Loans | Number of Loans | Deferral Period | Balance | Percentage of Tier 1 Capital | | :--- | :--- | :--- | :--- | :--- | | Commercial Purpose | 216 | 3 months | $132,898,838 | 53.80% | | Consumer Purpose | 71 | 1-3 months | $1,498,218 | 0.61% | | **Total** | **287** | | **$134,397,056** | | - As of April 16, 2020, the Corporation had received approximately **822 applications for up to $119 million** of loans under the Paycheck Protection Program (PPP)[143](index=143&type=chunk)[225](index=225&type=chunk) Commercial Loan Exposure to Industries Impacted by COVID-19 (as of March 31, 2020) | Type of Loans | Balance | Percentage of Total Loan Portfolio | | :--- | :--- | :--- | | Lessors of Commercial Real Estate | $26,538,223 | 1.65% | | Hospitality Industry (Hotels/B&B) | $35,882,974 | 2.23% | | Food Services Industry | $15,517,902 | 0.97% | | Other | $54,959,739 | 3.42% | | **Total** | **$132,898,838** | **8.27%** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=ITEM%203%20-%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The Corporation's primary market risk exposure, mainly interest rate risk, has not materially changed since year-end 2019 - The Corporation's primary market risk is **interest rate risk**, stemming from its core business of taking deposits and making loans and investments[282](index=282&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=ITEM%204%20-%20CONTROLS%20AND%20PROCEDURES) Executive management concluded that the Corporation's disclosure controls and procedures were effective as of March 31, 2020 - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by the report[306](index=306&type=chunk) [PART II - OTHER INFORMATION](index=63&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=63&type=section&id=ITEM%201%20-%20LEGAL%20PROCEEDINGS) The Corporation was not party to any material pending legal proceedings outside the ordinary course of business - There were **no material pending legal proceedings** against the Corporation or its subsidiaries as of March 31, 2020[308](index=308&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=ITEM%201A%20-%20RISK%20FACTORS) Key risks include the uncertain impact of the COVID-19 pandemic, the future adoption of the CECL standard, and merger integration challenges - The **COVID-19 pandemic** is identified as a major risk factor, with potential negative impacts on loan demand, credit losses, and securities valuations[309](index=309&type=chunk)[310](index=310&type=chunk) - The future adoption of the **CECL accounting standard** is expected to materially affect how the allowance for loan losses is determined and could require a significant increase[313](index=313&type=chunk)[314](index=314&type=chunk) - Risks related to the **FCBI merger** include incurring significant transaction costs, potential management distraction, and difficulties in post-merger integration[318](index=318&type=chunk)[319](index=319&type=chunk)[320](index=320&type=chunk)[322](index=322&type=chunk)

Use these links to rapidly review the document Table of Contents ITEM 8—FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Title of each class Trading Symbol Name of each exchange on which registered Common Stock, $2.50 par value per share ACNB The NASDAQ Stock Market, LLC Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year-ended December 31, 2019 OR o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 Commission file number 1-35015 ACNB CORPORATION (Exact name of Registrant as specified in its charter) Pennsylvania 23-2233457 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 16 Lincoln Square, Gettysburg, Pennsylvania 17325 (Add ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 Commission file number 1-35015 ACNB CORPORATION (Exact name of Registrant as specified in its charter) Pennsylvania 23-2233457 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 16 Lincoln Square, Gettysburg, Pennsylvania 17325 (Address ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 Commission file number 1-35015 ACNB CORPORATION (Exact name of Registrant as specified in its charter) Pennsylvania 23-2233457 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 16 Lincoln Square, Gettysburg, Pennsylvania 17325 (Address ...

Use these links to rapidly review the document Table of Contents ITEM 8—FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year-ended December 31, 2018 OR o TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-35 ...