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CBT CORPORATION AND BMC BANKCORP, INC., ANNOUNCE MERGER AGREEMENT

 PADUCAH, Ky., Jan. 11 /PRNewswire/ -- CBT Corporation (NASDAQ: CBTC) headquartered in Paducah, Ky., and BMC Bankcorp, Inc., of Benton, Ky., announced today the signing of a definitive agreement under which BMC will be merged into the CBT organization. BMC Bankcorp is a multi-bank holding company with three bank subsidiaries: The Bank of Marshall County, Graves County Bank, and United Commonwealth Bank located in Calloway County. CBT's subsidiaries include Citizens Bank and Trust Company of Paducah, Pennyrile Citizens Bank & Trust of Hopkinsville, and Fidelity Credit Corporation, Paducah, Ky.
 "The combination of CBT and BMC creates a strategic regional alliance that will strengthen our mission as a diversified high performing financial services company in western Kentucky and southern Illinois," stated William J. Jones, president and chief executive officer of CBT. "In developing our expansion plans, no other single affiliation offered the all-around benefits of enhancing our franchise value and accessibility to attractive regional opportunities."
 Completion of the merger is subject to customary closing conditions, including approval of BMC shareholders and appropriate regulatory authorities. Under the terms of the agreement, shareholders of BMC will receive 2 shares of CBT common stock for each share of BMC common stock. Currently outstanding there exists 597,780 shares of common stock of BMC. BMC has granted CBT an option to purchase up to 19.9 percent of BMC's stock. It is expected that the transaction will be completed in the second quarter of 1994.
 Upon consummation of the merger, three BMC Bankcorp directors will be added to the CBT Corporation board, namely its Chairman, Joe Tom Haltom, Billy B. Morgan, and Kerry B. Harvey. No management changes are anticipated.
 BMC Bankcorp Board Chairman, Joe Tom Haltom, expressed enthusiasm for the CBT/BMC affiliation: "This transaction offers BMC and its shareholders the best of both worlds; we will significantly contribute to the management of an unusually strong holding company with affiliates throughout our area while adhering to the community and customer oriented approach to the delivery of financial services which has made BMC a great organization. In fact, CBT has committed to the construction of a new operation facility in Benton which will be a great asset to our community and our bank. Moreover, we expect to continue to serve our customers just as we have in the past with the real probability of increasing financial product choices as we go forward. I am convinced that today's announcement will be remembered as an important step for our region."
 Larry Wright, president of BMC Bankcorp and the Bank of Marshall County, echoed Haltom's optimism about the merger: "The BMC Bankcorp/CBT Corporation merger represents a great opportunity for our shareholders, customers, employees, and our region. This is the marriage of two of the leading financial institutions in our region. We are excited because the merger offers increased value for our shareholders and new services to our customers, while retaining our identity as an institution committed to the communities we serve. CBT and BMC have enjoyed a close association over the years, working together on many important projects. We look forward to our new relationship with confidence and pride."
 John Peck, president of United Commonwealth Bank, F.S.B. located in Murray, Ky., added: "United Commonwealth has enjoyed a tremendous first year of service to the people of Calloway County. The BMC/CBT partnership announced today will serve to further our momentum in this important community. CBT has enthusiastically embraced plans to construct a new main office for United Commonwealth at 12th and Main in Murray, expressing a long-term commitment to this community. I am certain we will experience continued growth while offering new services as a result of our affiliation with such a strong and stable organization as CBT."
 Jimmy Ellington, president of Graves County Bank with branches in Fancy Farm, Wingo, and Mayfield, said, "We are excited and think the merger offers greater service and opportunities for our shareholders and new services to our customers.
 "This is an exciting step in the overall strategic plan for "CBT," said Jones. "Besides the obvious opportunities in western Kentucky, with United Commonwealth Bank's status as a federally chartered savings bank, we will have even broader expansion capabilities than ever before."
 At the time of this announcement, CBT Corporation and its affiliates have total assets of approximately $600 million with BMC Bankcorp, Inc. totaling approximately $200 million.
 -0- 1/11/94
 /CONTACT: William J. Jones of Citizens Bank, 502-575-5139/
 (CBTC)


CO: CBT Corporation; BMC Bancorp, Inc.; Citizens Bank and Trust Company ST: Kentucky IN: FIN SU: TNM PER

CM-MB -- CH003 -- 0910 01/11/94 10:27 EST
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Publication:PR Newswire
Date:Jan 11, 1994
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