HopFed Bancorp (HFBC) in Hopkinsville, Ky., is bolstering its presence in neighboring Tennessee.
The $967.7 million-asset parent of Heritage Bank said Tuesday it would pay $14.3 million in cash for Sumner Bank & Trust in Gallatin, Tenn. Sumner has assets of $184 million, three branches in Gallatin and Hendersonville and loan production offices in Franklin, Jackson and Lebanon.
The deal, expected to close in the third quarter, would give HopFed 24 offices in western Kentucky and middle Tennessee.
HopFed, which converted to a fully public company from a mutually owned firm in the 1990s, counts among its owners M3 Funds, an investment management firm; Sandler O'Neill Asset Management; and the Stillwell Group, an investment group with a history of shareholder activism, according to filings by HopFed with the Securities and Exchange Commission.
"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," John Peck, HopFed's chief executive, said in a press release.
"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 CEO Mike Cook said.
Raymond James and the law firm of Jones Walker advised HopFed on the deal. Sumner was advised by Houlihan Lokey and the law firm of Butler, Snow, O'Mara, Stevens and Canada.