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) May 13, 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 8.01.  Other Events

     On May 13, 2005,  Community Banks,  Inc. issued a press release declaring a
first  quarter cash  dividend.  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 is included in the  registration  statement on
Form S-4/A which the Company filed with the SEC on April 26, 2005, in connection
with  the   proposed   merger  of  the   Company   and   PennRock.   This  proxy
statement/prospectus contains important information about the Company, PennRock,
the merger,  the persons soliciting proxies in the merger and their interests in
the merger and related matters. The proxy  statement/prospectus is available for
free on the SEC's web site at http://www.sec.gov.  It is also 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 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. 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 May 13, 2005.




                                   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: May 16, 2005                           /s/  Donald F. Holt
                                                -----------------------------
                                                   Donald F. Holt
                                                   Executive Vice President and
                                                   Chief Financial Officer