Community Trust Bancorp Inc. in Pikeville, Ky., completed its purchase of LaFollette National Corp. in LaFollette, Tenn., the companies announced.

The $3.4 billion-asset Community Trust paid $16.1 million in cash, or $650 a share, the companies said Wednesday. The price was about 1.05 times LaFollette's tangible book value. First National Bank of LaFollette is to be merged into Community Trust Bank.

The deal will boost Community Trust's assets by about $182 million and expand its retail reach into Tennessee.

Community Trust has 70 branches across Kentucky and six in West Virginia, along with five trust offices in Kentucky.

The deal is expected to add to Community Trust's earnings within a year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.