Officials from Heritage Bank would not comment about the merger.
When the reprimand was issued, Thomas Miller, executive director of the Kentucky Office of Financial Institutions, said Heritage was "a good bank that just got a little off track."
The merger first has to have approval from the regulatory agency and the Heritage Community shareholders.
The agreement between the banks calls for the payment of $25.75 per share for a total transaction of about $12.2 million.
Soon after the merger is approved, information about how customers of Heritage will make the transition to Community Trust will be mailed to their residences or businesses.
Hale said the merger will help Heritage customers because there will be expanded services, and that the bank would be able to make much larger loans.
Community Trust has branch in Harrodsburg
There is a branch of Community Trust in Harrodsburg, and other branches in Lexington, Richmond, Winchester and other central Kentucky cities.
"This is a perfect fit in our central Kentucky region," Hale said. "We're really excited" about being in Danville.
She said Community Trust follows a community banking model, which means that people serving an area make decisions for that area.
"Our organization is community-focused," she said.
According to its Web site, Heritage was organized as a state-chartered commercial bank in 1997 by 12 business people who were concerned about the dwindling number of independent, locally-owned banks in the area. It started with initial capital of about $5 million. Heritage's main branch is at 462 W. Main St. and it has a drive-in branch in Danville Manor.
Community Trust is headquartered in Pikeville, and has assets of $2.7 billion with 72 banking locations across Kentucky and five locations in West Virginia.
On the Net
Community Trust Bancorp
Heritage Community Bank