Community Banks Inc. in Harrisburg, Pa., which reported a profit of $5.4 million in the second quarter of 2004, reported Monday that it lost $1.1 million in the period this year.
The $3.5 billion-asset company blamed charges of about $2 million related to its acquisition of the $1.1 billion-asset PennRock Financial Service Corp., which it completed July 1, and a $6 million prepayment penalty for early payment of$60 million of Federal Home Loan Bank advances.
Donald F. Holt, Community's executive vice president and chief executive, said in an interview Monday that the company would benefit from the PennRock acquisition and from reduced funding costs in the third and fourth quarter, "but we really expect to hit the ground running at the beginning of 2006."
Community reported a first-half profit of $4.3 million, off 144%.
