<PAGE>
                                                                   Exhibit 10.18

                           HOME FEDERAL SAVINGS BANK

                           EXECUTIVE COMPENSATION PLAN

                                  FOR DIRECTORS

                       AMENDED AND RESTATED PLAN AGREEMENT



  WHEREAS, Home Federal Savings Bank, formerly Home Federal Savings & Loan
  Association of Hagerstown, Maryland, desires to retain and reward the services
  of certain members of its Board of Directors who elect to participate and
  recognizes that the loss of services of any member of such group would result
  in a substantial loss to the Bank; and

  WHTREAS, Home Federal Savings Bank established an Executive Compensation Plan
  for Directors to recognize the services rendered in the past and to be
  rendered in the future by the members of such group until the respective dates
  of their retirement; and

  WHEREAS, The Home Federal Savings Bank Executive Compensation Plan for
  Directors provides and allows for the amendment of any existing Plan
  agreement;

  NOW, THEREFORE, Home Federal Savings Bank hereby amends the Executive
  Compensation Plan for Directors as hereinafter set forth.

                             ARTICLE 1 - DEFINITIONS

1.1      BANK: Home Federal Savings Bank, any subsidiary thereof which employs a
         Participant, any predecessor corporation or business, and any
         corporation or business which has merged into or consolidated with or
         substantially all of whose assets were acquired by Home Federal Savings
         Bank or any successor corporation.

1.2      PARTICIPANT: A participant shall be a Director of the Bank who is so
         designated by the Board of Directors and who has executed an
         application for participation pursuant to Article 2.1.

1.3      PLAN: The Plan shall consist of this document and any amendments
         thereto.
<PAGE>

1.4      INSURER: John Hancock Mutual Life Insurance Company or another insurer
         chosen by the Bank for any substandard risk classification.

1.5      BENEFICIARY: Any person or persons, as designated pursuant to Article
         4.4, to whom any benefits may be payable upon the death of a
         Participant pursuant to Article 3.1 or 3.3.

1.6      NORMAL RETIREMENT DATE: The first day of the month following the 65th
         or 72nd birthday of the Participant, depending on the option selected
         by the individual Director. In no event will payments be made prior to
         the fifth anniversary of said Director's participation in the Plan
         regardless of age. Retirement shall not be postponed beyond age 72 for
         purposes of this Agreement and Plan. At the request of the Participant,
         and if the Bank agrees, service may continue beyond the Participant's
         Normal Retirement Date; however, payment of benefits under this Plan
         will commence at the Normal Retirement Date.

1.7      CONSTRUCTION: The masculine gender shall be deemed to include the
         feminine and neuter genders; the feminine to include the masculine; the
         singular to include the plural; and the plural to include the singular;
         in each case where appropriate.

1.8      TOTAL DISABILITY: Disability or incapacity of a Participant hereunder
         during his or her term of service as a Director deemed "total
         disability" shall constitute such incapacity of a Participant as a
         result of bodily injury or disease or mental disease that he or she is
         unable to perform the routine duties as a Director of the Bank.
         However, no such "total disability" shall be deemed to exist if such
         "total disability" results wholly or partially from willfully and
         intentionally self-inflicted injury.

1.9      ORIGINAL EFFECTIVE DATE OF PLAN: July 1, 1982

1.10     EFFECTIVE DATE OF THIS PLAN AMENDMENT & RESTATEMENT: January 1, 1993


                            ARTICLE 2 - PARTICIPATION

2.1      Eligibility for participation in this Plan shall be restricted to those
         Directors who are designated as Participants in this Plan by the Board
         of Directors. A Director so eligible shall become a Participant BY
         filing with the Bank a written application for participation in form
         satisfactory to the Bank within sixty (60) days of the 


<PAGE>

         date when he is first notified in writing that he is eligible to
         participate. Said application may, at the option of the Bank, be in the
         form of an application for insurance coverage pursuant to Article 4.1.
         If such application is not filed within such sixty (60) day period,
         participation thereafter shall not be permitted except with the written
         approval of the Board of Directors.

2.2      A Participant shall continue to be covered by the Plan until the
         earliest date on which any of the following events occur:

         a.       A Participant notifies the Bank in writing that he no longer
                  wishes to participate;

         b.       Termination of service other than by retirement, disability,
                  or death, except as set forth in Section 2.4 herein;

2.3      Should a Participant's participation be terminated under Article 2.2,
         he will be entitled to receive a benefit commencing at the earlier of
         his death or his Normal Retirement Date. Such benefit shall be an
         amount determined based upon the actual number of years of
         participation under this Plan.

2.4      In the event of the merger or acquisition of the Bank by a successor,
         all benefits outlined on Schedule A hereof will be provided regardless
         of years of participation to all Directors deemed as Participants on
         the effective date of such merger or acquisition, irrespective of
         whether or not the Bank retains its Board of Directors thereafter.

2.5      In the event a Participant is granted one or more leaves of absence
         exceeding in the aggregate twenty-four (24) consecutive months, his
         service will be deemed to have terminated under Article 2.2 on the
         first date such leave or leaves commence unless specifically waived by
         the Board of Directors.

2.6      Should a Participant's participation be terminated under Article 2.2,
         he may not thereafter be covered by the Plan, except upon approval by
         the Board of Directors.


<PAGE>





                              ARTICLE 3 - BENEFITS

3.1      DEATH BENEFITS (PRIOR TO PARTICIPANT'S RETIREMENT): If a Participant
         should die prior to his retirement, a benefit shall be payable to the
         Participant's Beneficiary in such amount as shall be endorsed on
         Schedule A of this Plan. Said benefit shall be payable on a monthly
         basis at one-twelfth the annual amount and shall be payable for ten
         (10) years certain and continuous.

         At the Bank's sole discretion, a lump sum settlement may be made which
         will be the equivalent of such payments due said Beneficiary.

3.2      NORMAL RETIREMENT BENEFIT (NORMAL RETIREMENT): If a Participant has at
         least five years of participation under the Plan, commencing on his
         Normal Retirement Date, he shall be paid by the Bank an annual normal
         retirement benefit in such amount as shall be endorsed on Schedule A of
         this Plan. Said benefit shall be payable on a monthly basis at
         one-twelfth the annual amount and shall be payable during his lifetime
         for a maximum of ten (10) years. At the Bank' s sole discretion, but
         only at the request of the Participant, an optional form of settlement
         may be made which will be the equivalent of said benefit.

3.3      DEATH BENEFITS (SUBSEQUENT TO PARTICIPANT'S RETIREMENT): In the event 
         that a Participant dies prior to receiving all of the payments to 
         which he is entitled under Article 3.2, any installments still due 
         will be continued to his designated Beneficiary.

         At the Bank's solo discretion, a lump sum settlement may be made which
         will be the equivalent of such payments due said Beneficiary.

3.4      BENEFITS IN THE EVENT OF DISABILITY: Should a Participant suffer a
         "Total Disability" as hereinabove defined, benefits under the Plan
         shall become fixed in such amount as shall be endorsed on Schedule A of
         this Plan. Should the disabled Participant die prior to reaching age
         65, his or her Beneficiary shall be entitled to death benefits as
         provided in 3.1. If the disabled Participant should survive to age 65,
         he or she shall be entitled to the benefits as provided under Articles
         3.2 and 3.3.

         In the event of such "Total Disability," the five (5) years of
         participation under the Plan normally required of the Participant in
         Article 3.2 will be waived.
<PAGE>

3.5      EXCLUSIONS: In the event a Participant commits suicide, while sane or
         insane, within two (2) years from the date of issue of any life
         insurance policy(ies) purchased on the life of said Participant
         pursuant to Article 4.1, the portion of benefits funded by such
         policy(ies) will not be payable if, within said two-year period,
         fraudulent misrepresentations of any facts material to the application
         for insurance hereunder are discovered.


                              ARTICLE 4 - INSURANCE

4.1      The death benefits provided for under Articles 3.1 and 3.3 will be
         provided by the purchase of insurance from the Insurer. The Participant
         shall cooperate fully with the Bank by submitting to all necessary
         medical examinations and by submitting such information to the Bank or
         to the Insurer as may be required.

4.2      No Participant shall have any rights in, or under any insurance policy
         purchased by the Bank pursuant to this Plan so long as the Bank is the
         owner thereof.

4.3      The Insurer shall not be a party to this Plan and shall be governed and
         bound only by the terms of insurance contracts issued by it. Nothing in
         this Plan shall be construed to require the Insurer to take action that
         is inconsistent with its rule and administrative practices.

4.4      Upon applying for participation in the Plan, each Participant shall
         designate on a form satisfactory to the Bank a Beneficiary or
         Beneficiaries for any benefits which may become payable hereunder in
         the event of his death. Any such Beneficiary can be changed by a
         Participant upon giving written notice to the Bank.

         The Beneficiary will be the person or persons named on the Beneficiary
         Designation Form most recently filed with the Bank at the time of the
         Participant's death.

                      ARTICLE 5 - AMENDMENT AND TERMINATION

5.1      Although the Bank intends to continue this Plan, its continuance is not
         guaranteed to persons with whom there is not an executed Participation
         Agreement in existence. The Bank reserves the right to amend or
         terminate the Plan at any time except in respect to persons with whom
         there is in existence an executed Participation Agreement.
<PAGE>

5.2      The Bank shall have the right to amend, discontinue, sell, assign,
         surrender or cancel any insurance policy(ies) purchased pursuant to
         Article 4.1.

5.3      Notwithstanding the provisions of Articles 5.1 and 5.2 above, if the
         Bank has commenced payment of the Normal Retirement Benefit to any
         Participant under Article 3.1 or if any Participant should die while
         this Plan is in effect, then the Bank shall continue to make the
         payments called for under Articles 3.1, 3.2, 3.3, and/or 3.4 to such
         Participant or his Beneficiary.

                            ARTICLE 6 - MISCELLANEOUS

6.1      The Plan shall under no circumstances be deemed to have any effect upon
         the terms or conditions of service as a Director of the Bank whether or
         not he is a Participant hereunder. The establishment and maintenance of
         this Plan shall not be construed as creating or modifying any contract
         between the Bank and any of its Directors, nor is it in lieu of any
         other benefits. This Plan shall under no circumstances be deemed to
         constitute a contract of insurance or employment.

6.2      Participation by any Director in this Plan shall not give such person
         the right to be employed by the Bank or any right or interest in this
         Plan other than as provided herein.

6.3      Benefits under this Plan shall not be subject in any manner to
         anticipation, alienation, sale, transfer, assignment, pledge or
         encumbrance by any Participant or Beneficiary and any attempt to do so
         shall be null and void. Benefits under this Plan shall not be subject
         to or liable for the debts, contracts, liabilities, engagements or
         torts of any Participant or of any Beneficiary, nor may the same be
         subject to attachment or seizure by any creditor or any Participant or
         any Beneficiary under any circumstances.

6.4      In the event of a Participant's retirement or death, he or his
         Beneficiary, as the case may be, should notify the Bank promptly and
         the Bank will the provide a claimant's statement form for completion
         which should be returned to the Bank, together with an official death
         certificate, if applicable. In the event that any claim hereunder is
         denied, the Bank will provide adequate notice in writing to such
         Participant or Beneficiary, setting forth the specific reasons for such
         denial and, in addition, the Bank will afford reasonable opportunity
         for a full and fair review of those reasons.

<PAGE>

Attest to Signature                 HOME FEDERAL SAVINGS BANK
and Corporate Seal:

                                    By:
----------------------                 ----------------------
Secretary - Cashier


<PAGE>


                                  SCHEDULE I TO
                            HOME FEDERAL SAVINGS BANK
                           EXECUTIVE COMPENSATION PLAN
                                  FOR DIRECTORS
                       AMENDED AND RESTATED PLAN AGREEMENT

         The following persons participate in the Home Federal Savings Bank
Executive Compensation Plan for Directors Amended and Restated Plan Agreement.

J.A. Abott
G.W. Bushey
M.W. Dutton, Jr.
M.C. Foltz, II
W.H. Gelbach, Jr.
L.S. Harrison
B.B. Kunkelman
J.Snyder