HopFed Bancorp (HFBC) in Hopkinsville, Ky., and Sumner Bank & Trust in Gallatin, Tenn., have terminated plans to merge.
The companies called off the sale after Sumner failed to meet a "certain performance requirement," HopFed said in a press release. The companies provided no details on the performance requirement.
The $949 million-asset HopFed had agreed to pay $14.3 million in cash for the $184 million-asset Sumner in February. Sumner has three branches in middle Tennessee and three loan production offices.
The deal's demise could be viewed as a victory for activist investor Joseph Stilwell, who had objected to the acquisition. In May, Stilwell succeeded in getting a representative placed on HopFed's board.
It was a good week for Stilwell. On Thursday, Victor Karpiak announced plans to resign as chief executive of First Financial Northwest (FFNW) in Renton, Wash. Stilwell, who frequently clashed with Karpiak, also has a representative, also has a representative on First Financial's board.