Feb 13 - HopFed Bancorp Inc. (NASDAQ: HFBC), the parent company of Heritage Bank in Hopkinsville, Ky., has entered into a definitive agreement to acquire Sumner Bank & Trust (OTC Pink: SBKT), based in Gallatin, Tenn. HopFed has agreed to pay approximately $14.3 million in cash, or $10.04 per share, to purchase all of the common stock and common stock equivalents of Sumner, including common stock that would be issued on the conversion of Sumner's convertible preferred stock upon a change of control. Subject to Sumner's shareholder and regulatory approval, the companies anticipate the transaction will close in the third quarter of 2013.
In making the announcement, John E. Peck, president and CEO of HopFed and Heritage stated, "We are excited about the opportunity to partner with Sumner. This partnership is an important addition for our company as it provides us entry into the attractive communities of Sumner, Wilson and Williamson counties in middle Tennessee and Madison County in west Tennessee. We look forward to our partnership with Sumner and its management team as we participate in the growth opportunities that these wonderful communities provide."
Mike Cook, president and CEO of Sumner, stated, "The opportunity to partner with a strong publically traded community bank will enhance our relationship opportunities and allow us to continue to provide the highest quality of service to our communities. By partnering with Heritage, we can enjoy the benefits provided by a larger institution while keeping the community bank focus that we enjoy today."
Sumner Bank & Trust, a state-chartered bank that opened in 2005, has full-service banking centers in Gallatin (two) and Hendersonville, Tenn., and loan production offices in Franklin, Lebanon and Jackson, Tenn. At Dec. 31, 2012, Sumner had total assets of $184 million, total deposits of $157.6 million and $121.6 million in loans outstanding. More information about Sumner may be found on its website, www.sumnerbankandtrust.com.
HopFed Bancorp Inc. is the holding company for Heritage Bank headquartered in Hopkinsville, Ky. At Dec. 31, 2012, HopFed reported consolidated assets of $967.7 million, total deposits of $759.9 million and $525 million in loans outstanding. Heritage has 18 offices in western Kentucky and middle Tennessee in addition to its subsidiary, Fall & Fall Insurance of Fulton, Ky. Heritage's operations include Heritage Solutions of Murray, Ky., Hopkinsville, Ky., Kingston Springs, Tenn., and Pleasant View, Tenn., which offers a broad line of financial services. Heritage Mortgage Services of Clarksville, Tenn., offers long term fixed rate 1-4 family mortgage loans in all communities in the Company's general market area. Heritage offers a broad line of banking and financial products and services with the personalized focus of a community banking organization. More information about HopFed and Heritage may be found on their website, www.bankwithheritage.com.
Raymond James acted as financial adviser and Jones Walker acted as legal counsel to HopFed Bancorp Inc. Houlihan Lokey acted as financial adviser and Butler, Snow, O'Mara, Stevens & Cannada, PLLC acted as legal counsel for Sumner Bank and Trust.