MILLERSBURG, Pa. Community Banks Inc. said Wednesday that it would buy Glen Rock State Bank of Glen Rock, Pal, in a deal valued at $25.5 million, about 1.6 times book value.
Glen Rock State has $184 million of assets and would add five branches in southern York County to Community Banks seven offices there.
The deal, expected to close in the first quarter, would create a $1.3 billion-asset financial holding company with 40 branches across the state.
Community Banks would exchange 0.9 shares of its stock for each share of Glen Rock State Banks in a deal accounted for as a pooling of interests.
Community Banks is the $1.1 billion-asset parent of Community Bank and of Peoples State Bank. Glen Rock State Bank would operate as a division of Peoples State.