UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

        Date of Report (Date of earliest event reported) January 18, 2005

                              COMMUNITY BANKS, INC.
                             ----------------------
             (Exact Name of Registrant as Specified in its Charter)

                                  Pennsylvania
                                  ------------
         (State or other jurisdiction of incorporation or organization)

                                   23-2251762
                                   ----------
                      (I.R.S. Employer Identification No.)

                                   No. 0-15786
                                  ------------
                            (Commission file number)


              750 East Park Drive, Harrisburg, Pennsylvania  17111
             ------------------------------------------------------
               (Address of Principal Executive Offices)   (Zip Code)


                                 (717) 920-1698
                                 --------------
              (Registrant's telephone number, including area code)


Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[X]  Written  communciations  pursuant to Rule 425 under the  Securities Act (17
     CFR 230.425)

[ ]  Soliciting  material  pursuant to Rule 14a-12 under the  Exchange  Act  (17
     CFR 240.14a-12)

[ ]  Pre-commencement   communications   pursuant  to  Rule  14d-2(b)  under the
     Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement  communications   pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))



Item 2.02.  Results of Operations and Financial Condition.

     On  January  18,  2005,  Community  Banks,  Inc.  issued  a  press  release
announcing  earnings for the quarter and year ended December 31, 2004. The press
release is attached as Exhibit 99.1 to this Current  Report on Form 8-K. No part
of this report shall be deemed  incorporated by reference into any  registration
statement filed under the Securities Act of 1933.

The following  disclosure is made in accordance  with Rule 165 of the Securities
and Exchange Commission ("SEC").

     The  Company  urges  its  shareholders  and the  shareholders  of  PennRock
Financial  Services Corp ("PennRock"),  as well as other investors,  to read the
proxy  statement/prospectus  that will be included in the registration statement
on Form S-4 which the  Company  will  file with the SEC in  connection  with the
proposed  merger of the Company and  PennRock.  This proxy  statement/prospectus
will contain important information about the Company,  PennRock, the merger, the
persons  soliciting  proxies in the merger and their interests in the merger and
related matters. After the proxy  statement/prospectus is filed with the SEC, it
will be available for free on the SEC's web site at http://www.sec.gov.  It will
also be available for free from the Company and PennRock.  You may direct such a
request to either of the following persons:


                                                         <s>
Patricia E. Hoch, Senior Vice President and Secretary       Shannan Guthrie, Investor Relations Officer
Community Banks, Inc.                                       PennRock Financial Services Corp.
750 East Park Drive                                         1060 Main St.
Harrisburg, Pennsylvania 17111                              Blue Ball, Pennsylvania 17506
Phone: (717) 920-1698                                       Phone: (717) 354-3612


     In   addition   to  the   proposed   registration   statement   and   proxy
statement/prospectus,  the Company  and  PennRock  file  annual,  quarterly  and
special reports,  proxy  statements and other  information with the SEC. You may
read and copy any reports,  statements or other information filed by the Company
or PennRock  at the SEC's  public  reference  rooms at 450 Fifth  Street,  N.W.,
Washington, D.C. 20549 or at the SEC's other public reference rooms in New York,
New York and  Chicago,  Illinois.  Please  call  the SEC at  1-800-SEC-0330  for
further  information on the public reference rooms. The Company's and PennRock's
filings  with  the  SEC  are  also  available  to  the  public  from  commercial
document-retrieval   services   and  for   free  on  the   SEC's   web  site  at
http://www.sec.gov.

     The Company, PennRock and their respective executive officers and directors
may be deemed to be participants in the  solicitation of proxies with respect to
the transactions  contemplated by the merger agreement.  Information  concerning
such officers and  directors is included in the parties'  proxy  statements  for
their annual meetings of shareholders  in 2004,  previously  filed with the SEC.
These   documents   are   available   for   free  on  the   SEC's   website   at
http://www.sec.gov  and they are also available at no charge from the companies.
You may direct a request for these documents to the officers identified above.

Item 9.01.  Financial Statements, Proforma Financial Information and Exhibits.
        (a)  Not Applicable.
        (b)  Not Applicable.
        (c)  Exhibits:

             99.1 Press release of Community Banks, Inc. dated January 18, 2005.
             99.2 Fiscal Insight - December 31, 2004.



                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                                                    Community Banks, Inc.
                                                    ---------------------
                                                        (Registrant)

Dated: January 18, 2005                           /s/  Donald F. Holt
                                                -----------------------------
                                                       Donald F. Holt
                                                Executive Vice President and
                                                Chief Financial Officer