Commercial Bancgroup, a $205 million-asset holding company in Harrogate, Tenn., has signed a definitive agreement to buy Cumberland Mountain Bancshares of Middlesboro, Ky.
Commercial would pay $9.25 million in cash about $14 a share for Cumberland Mountain, the corporate parent of the $126 million-asset Middlesboro Federal Bank. The deal, announced Friday, is expected to close this summer.
The privately held Commercial plans to merge Middlesboro Federal into its Commercial Bank to create a $330 million-asset institution with 12 offices, in Kentucky, Tennessee, and Virginia.
