Regulatory Matters

12 Months Ended

Dec. 31, 2012

Regulatory Matters [Abstract]

REGULATORY MATTERS

NOTE N — REGULATORY MATTERS

The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal banking regulators. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios (set forth below) of Tier 1 capital to average assets and of Tier 1 and total capital (as defined in the regulations) to risk weighted assets. Management believes, as of December 31, 2012, that the Corporation and the Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2012, the most recent notification from the federal banking regulators categorized the Bank as "well capitalized" under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's category.

On May 5, 2009, stockholders approved and ratified the ACNB Corporation 2009 Restricted Stock Plan, which awards shall not exceed, in the aggregate, 200,000 shares of common stock. As of December 31, 2012, no shares have been issued under the plan. In January 2011, the Corporation offered stockholders the opportunity to participate in the ACNB Corporation Dividend Reinvestment and Stock Purchase Plan. The plan allows registered stockholders who have a minimal number of shares to participate and also provides for voluntary cash purchases of ACNB Corporation common stock. During 2012 and 2011, 19,559 and 17,466, respectively, shares of common stock were issued within the plan.

The actual and required capital amounts and ratios were as follows:

	Actual				For Capital Adequacy Purposes		To be Well Capitalized under Prompt Corrective Action Provisions
Dollars in thousands	Amount		Ratio		Amount	Ratio	Amount	Ratio
CORPORATION
As of December 31, 2012
Tier 1 leverage ratio (to average assets)	$	92,860	8.76	%	$      =42,424	=4.0%	N/A	N/A
Tier 1 risk-based capital ratio (to risk-weighted assets)	92,860		13.65		=27,211	=4.0	N/A	N/A
Total risk-based capital ratio (to risk-weighted assets)	101,512		14.92		=54,422	=8.0	N/A	N/A
As of December 31, 2011
Tier 1 leverage ratio (to average assets)	$	87,546	8.71	%	$      =40,215	=4.0%	N/A	N/A
Tier 1 risk-based capital ratio (to risk-weighted assets)	87,546		12.75		=27,464	=4.0	N/A	N/A
Total risk-based capital ratio (to risk-weighted assets)	96,252		14.02		=54,928	=8.0	N/A	N/A
BANK
As of December 31, 2012
Tier 1 leverage ratio (to average assets)	$	86,288	8.14	%	$      =42,399	=4.0%	$      =52,999	=5.0%
Tier 1 risk-based capital ratio (to risk-weighted assets)	86,288		12.80		=26,959	=4.0	=40,439	=6.0
Total risk-based capital ratio (to risk-weighted assets)	94,840		14.07		=53,919	=8.0	=67,398	=10.0
As of December 31, 2011
Tier 1 leverage ratio (to average assets)	$	82,703	8.24	%	$      =40,144	=4.0%	$      =50,180	=5.0%
Tier 1 risk-based capital ratio (to risk-weighted assets)	82,703		12.07		=27,415	=4.0	=41,123	=6.0
Total risk-based capital ratio (to risk-weighted assets)	91,307		13.32		=54,830	=8.0	=68,538	=10.0