X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HARRISBURG, PA-Community Banks Inc. signed an agreement to acquire PennRock Financial Services Corp. in an all-stock transaction valued at approximately $326 million. This will make locally based Community Banks the eighth largest bank holding company headquartered in Pennsylvania and the operator of 67 banking offices in 11 counties throughout Central Pennsylvania from the Pocono region to the north and the Pennsylvania/Maryland border to the south. One branch is across the border in Maryland.

There is no market overlap and both companies’ branches are in high-growth areas. Of chief significance, says Eddie L. Dunklebarger, Community Banks’ president and CEO, is the combined companies’ “significant presence in the golden triangle of Harrisburg, Lancaster and York, PA.”

Blue Ball-based PennRock operates 17 offices–10 in Lancaster County, five in Berks and two in Chester. Three more are scheduled to open within the next seven months. All will continue to operate as Blue Ball National Bank, which will become a separate division under Community Banks’ charter.

Community Banks currently operates 50 branches and has nearly $2 billion in assets. PennRock has nearly $1.1 billion in assets. Six members of PennRock’s board will join Community Banks’ board, taking the total number of directors to 15. Earlier this year, Melvin Pankuch, PennRock’s EVP and CEO, announced his intention to retire at the end of 2005 and will remain with the company as vice chairman “to ensure a smooth transition,” he said during a conference call without putting a timeframe on his departure. The merger is expected to close in the second quarter of next year.

Under the agreement PennRock shareholders will receive 1.4 shares of Community Banks’ stock, which represents a price of approximately $41.85-per-share, in exchange for each share of PennRock stock. Community Banks trades under CMTY on the Nasdaq, and PennRock trades as PRFS on the same exchange.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.