Article: Community Banks lines up acquisition.

By Bill Sulon, The Patriot-News, Harrisburg, Pa. Knight Ridder/Tribune Business News

Nov. 17--Community Banks Inc. plans to buy PennRock Financial Services Corp., parent company of Blue Ball National Bank, for $326 million in stock.

The deal, expected to close by June 30, 2005, would add 17 Blue Ball National Bank branches to the Community Banks network of offices.

An undisclosed number of employees will be laid off as Community Banks works to trim combined operating expenses by 10 percent, or $8 million, in the first full year after the acquisition, Donald F. Holt, chief financial officer at Community Banks, said Tuesday.

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