CNB Bancshares in Sevierville, Tenn., plans to buy National Bank of Tennessee, after the Newport, Tenn., bank's holding company files for bankruptcy.
The $143 million-asset NBN Corp. is expected to file for Chapter 11 bankruptcy, according to a Wednesday news release. National Bank of Tennessee was not included in NBN's bankruptcy filing and its operations will not be affected. The timing of the bankruptcy filing was not disclosed.
The $885 million-asset CNB did not disclose financial terms of its acquisition agreement. The deal is expected to close by June 30.
National Bank of Tennessee, which operates two branches in Newport, earned $63,000 in the first half of this year, based on its call report with the Federal Deposit Insurance Corp. It lost $688,000 last year.
CNB has 19 branches in eastern Tennessee, including two offices in Knoxville.
Austin Associates; Bone McAllester Norton; and Hodges, Doughty & Carson are advising CNB. Burke Group and Ritchie & Powell are advising NBN.