Community Bank System Inc. of DeWitt, N.Y., said Wednesday that it will buy First Liberty Bank Corp. of Jermyn, Pa., for $86.7 million in stock.

The purchase would expand Community’s franchise outside its base in upstate New York. It is expected to close in the second quarter and values First Liberty at about 1.44 times book.

Community, which has 67 branches and $1.9 billion of assets, would exchange 0.56 shares for each share of First Liberty in the deal, to be accounted for as a pooling of interests.

First Liberty has assets of $647 million and 13 branches. It would keep its name and be a division of Community Bank.

Sanford A. Belden, president and chief executive officer of Community Bank System, said the acquisition is meant to help the company gain share in “faster-growing markets” and increase its revenue from investment management and broker-dealer services, which First Liberty does not currently offer.

This is Community’s second acquisition announcement in less than three months. In September it said it would buy $188 million-asset Citizens National Bank of Malone in New York for an undisclosed price.

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