Commercial Bank to acquire Union National Bank and Trust

Sat, May 17 2008

— Special to the Times-Tribune
Commercial Bank of Harrogate, Tenn. announced Friday an agreement for Commercial Bancgroup, Inc. to acquire all outstanding shares of Union National Bancorp of Barbourville, Inc.
The transaction has been approved by the boards of each company and is subject to shareholder and regulatory approval.
Union National Bank, a community bank which opened in 1934, currently has $200 million in assets with four offices in Barbourville and one in Corbin.
“What attracted Commercial Bank to Union National Bank and Trust was their solid financial strength, seasoned management and community involvement,” said Terry L. Lee, president and CEO of Commercial Bank. “This begins the next chapter in our 31-year history of growth and prosperity. We are proud to see our family of customers and employees grow, as well as our number of locations.”
Commercial Bank currently has $456 million in assets with fourteen offices in Bell and Harlan counties in Kentucky, as well as Claiborne, Union and Knox counties in Tennessee. They also operate a Loan Production Office in Kingsport, Tenn. and an Insurance Office in Alcoa, Tenn.
Commercial Bank will now be focused on the task of combining the operations of the two banks, which is expected to be completed by the third quarter. At that time, the Union National offices will be renamed Commercial Bank.
For Union National customers, the acquisition will mean a change in name but not banking services and philosophy. They will be able to conduct “business as usual,” according to Lee.
“Our new customers will find that hometown banking is what we do best,” Lee said.
Union National Bank opened as a successor of the National Bank of John A. Black and The First National Bank, both of which had closed during the depression. The bank had beginning capital of $50,000 and surplus of $10,000 and was located on the corner of Knox and Liberty streets in Barbourville.
“The loyalty we have enjoyed from our customers and employees will be rewarded through this change,” said Jerry W. Carey, Union National’s president for the past 33 years. “The strength and dedication Commercial Bank brings has the potential to enhance all our banking relationships.”
As part of the purchase agreement, each of the 68 employees of Union National Bank will have jobs with Commercial Bank.
Lee said Commercial Bank considers their talented, experienced staff of officers and employees to be one of the great attractions of the acquisition. Like Commercial Bank, the employees of Union National Bank are its greatest asset in providing exceptional service to its customers, Lee said.
Commercial Bank, with 151 employees, has a five-star rating (top honors) from Bauer Financial, Inc., the nation’s leading independent bank rating firm.
Commercial Bank offers traditional financial services such as checking, savings and lending, as well as insurance and investment departments.
Commercial Bank can be found on the Internet at www.cbtn.com.

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