HopFed Bancorp to Buy Sumner Bank & Trust for $14.3M
HopFed Bancorp, Inc. (NASDAQ: HFBC) ("HopFed"), the parent company of Heritage Bank in Hopkinsville, Kentucky ("Heritage"), today announced that it has entered into a definitive agreement to acquire Sumner Bank & Trust (OTC: SBKT), based in Gallatin, Tennessee ("Sumner"). 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 upon the conversion of Sumner's convertible preferred stock upon a change of control (subject to adjustments). Subject to Sumner's shareholder and regulatory approval, the companies anticipate the transaction will close in the third quarter of 2013.
In making today's announcement, John E. Peck, President and Chief Executive Officer 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 Chief Executive Officer 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."
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