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STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | 12 Months Ended
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Dec. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] |
STOCKHOLDERS' EQUITY AND REGULATORY MATTERS | STOCKHOLDERS’ EQUITY AND REGULATORY MATTERS In January 2011, the Corporation offered stockholders the opportunity to participate in the ACNB Corporation Dividend Reinvestment and Stock Purchase Plan. The plan provides registered holders of ACNB Corporation common stock with a convenient way to purchase additional shares of common stock by permitting participants in the plan to automatically reinvest cash dividends on all or a portion of the shares owned and to make quarterly voluntary cash payments under the terms of the plan. Participation in the plan is voluntary, and there are eligibility requirements to participate in the plan. During 2022, 20,908 shares were issued under this plan with proceeds in the amount of $713,000. During 2021, 23,884 shares were issued under this plan with proceeds in the amount of $670,000. Proceeds are used for general corporate purposes. The ACNB Corporation 2009 Restricted Stock Plan expired by its own terms after ten years on February 24, 2019. No further shares may be issued under this plan. Of the 200,000 shares of common stock authorized under this plan, 25,945 shares were issued. The remaining 174,055 shares were transferred to the ACNB Corporation 2018 Omnibus Stock Incentive Plan. On May 1, 2018, stockholders approved and ratified the ACNB Corporation 2018 Omnibus Stock Incentive Plan, effective as of March 20, 2018, in which awards shall not exceed, in the aggregate, 400,000 shares of common stock, plus any shares that are authorized, but not issued, under the ACNB Corporation 2009 Restricted Stock Plan. As of December 31, 2022, there were 57,522 shares issued under this plan. The maximum number of shares that may yet be granted under this plan is 516,533. On October 24, 2022, the Corporation announced that the Board of Directors approved on October 18, 2022, a plan to repurchase, in open market and privately negotiated transactions, up to 255,575, or approximately 3%, of the outstanding shares of the Corporation’s common stock. This new common stock repurchase program replaces and supersedes any and all earlier announced repurchase plans. There were no treasury shares purchased under this plan during the quarter ended December 31, 2022. The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. 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. In July 2013, the federal banking agencies issued final rules to implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act. The phase-in period for community banking organizations began January 1, 2015, while larger institutions (generally those with assets of $250 billion or more) began compliance on January 1, 2014. The final rules call for the following capital requirements: •a minimum ratio of common Tier 1 capital to risk-weighted assets of 4.5%; •a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%; •a minimum ratio of total capital to risk-weighted assets of 8.0%; and, •a minimum leverage ratio of 4.0%. In addition, the final rules established a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets applicable to all banking organizations. Management believes, as of December 31, 2022, that the Corporation and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2022, 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 subsequent conditions or events that management believes have changed the Bank’s category. 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 (1) |  | Ratio (1) |  | Amount |  | Ratio
CORPORATION |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Tier 1 leverage ratio (to average assets) | $ | 258,468 |  |  | 9.91 | % |  | $ ≥104,372 |  |  | ≥4.0% |  | N/A |  | N/A
Common Tier 1 risk-based capital ratio (to risk-weighted assets) | 252,468 |  |  | 15.00 |  |  | ≥75,733 |  |  | ≥4.5 |  | N/A |  | N/A
Tier 1 risk-based capital ratio (to risk-weighted assets) | 258,468 |  |  | 15.36 |  |  | ≥100,978 |  |  | ≥6.0 |  | N/A |  | N/A
Total risk-based capital ratio (to risk-weighted assets) | 291,421 |  |  | 17.32 |  |  | ≥134,637 |  |  | ≥8.0 |  | N/A |  | N/A
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Tier 1 leverage ratio (to average assets) | $ | 249,574 |  |  | 8.91 | % |  | $ ≥112,027 |  |  | ≥4.0% |  | N/A |  | N/A
Common Tier 1 risk-based capital ratio (to risk-weighted assets) | 243,574 |  |  | 16.08 |  |  | ≥68,174 |  |  | ≥4.5 |  | N/A |  | N/A
Tier 1 risk-based capital ratio (to risk-weighted assets) | 249,574 |  |  | 16.47 |  |  | ≥90,899 |  |  | ≥6.0 |  | N/A |  | N/A
Total risk-based capital ratio (to risk-weighted assets) | 283,511 |  |  | 18.71 |  |  | ≥121,199 |  |  | ≥8.0 |  | N/A |  | N/A
BANK |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Tier 1 leverage ratio (to average assets) | $ | 246,184 |  |  | 9.50 | % |  | $ ≥103,690 |  |  | ≥4.0% |  | $ ≥ | 129,612 |  |  | ≥5.0 | %
Common Tier 1 risk-based capital ratio (to risk-weighted assets) | 246,184 |  |  | 14.68 |  |  | ≥75,441 |  |  | ≥4.5 |  | ≥108,971 |  |  | ≥6.5 |
Tier 1 risk-based capital ratio (to risk-weighted assets) | 246,184 |  |  | 14.68 |  |  | ≥100,588 |  |  | ≥6.0 |  | ≥134,118 |  |  | ≥8.0 |
Total risk-based capital ratio (to risk-weighted assets) | 264,137 |  |  | 15.76 |  |  | ≥134,118 |  |  | ≥8.0 |  | ≥167,647 |  |  | ≥10.0 |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Tier 1 leverage ratio (to average assets) | $ | 246,259 |  |  | 8.81 | % |  | $ ≥111,766 |  |  | ≥4.0% |  | $ ≥139,708 |  |  | ≥5.0 | %
Common Tier 1 risk-based capital ratio (to risk-weighted assets) | 246,259 |  |  | 16.32 |  |  | ≥67,906 |  |  | ≥4.5 |  | ≥98,086 |  |  | ≥6.5 |
Tier 1 risk-based capital ratio (to risk-weighted assets) | 246,259 |  |  | 16.32 |  |  | ≥90,541 |  |  | ≥6.0 |  | ≥120,722 |  |  | ≥8.0 |
Total risk-based capital ratio (to risk-weighted assets) | 265,126 |  |  | 17.57 |  |  | ≥120,722 |  |  | ≥8.0 |  | ≥150,902 |  |  | ≥10.0 |
_______________________________ (1) Amounts and ratios do not include capital conservation buffer.

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