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 Bank’s 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.

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