A $1 billion Kentucky bank holding company has signed an agreement to buy eight-year-old Sumner Bank & Trust for about $14 million. The deal is expected to close this summer.
HopFed Bancorp said its Heritage Bank unit will absorb Sumner Bank & Trust, which runs two offices in Gallatin and one in Hendersonville as well as loan production offices in Lebanon, Cool Springs and Jackson. That presence dovetails very nicely with Heritage's regional operations, which include three branches in Cheatham County.
"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," said John Peck, president and CEO of HopFed and Heritage. "We look forward to our partnership with Sumner and its management team as we participate in the growth opportunities that these wonderful communities provide."
The planned sale of Sumner Bank & Trust means two of Sumner County's hometown banks will have been swallowed up by larger regional players. Last summer, Nashville-based CapStar Bank completed its acquisition of American Security Bank & Trust. Combined, American Security and Sumner Bank & Trust controlled more than 11 percent of the county's deposits.
HopFed posted a profit of almost $3 million in the first nine months of last year, an increase from the $591,000 in the year before. Sumner Bank & Trust, in turn, earned $1.1 million, more than double the $404,000 from 2011. It finished the year with assets of $184 million, up from $156 million a year earlier.
"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," said Mike Cook, president and CEO of Sumner Bank & Trust. "By partnering with Heritage, we can enjoy the benefits provided by a larger institution while keeping the community bank focus that we enjoy today."
In addition to its Cheatham network — acquired from the former AmSouth in 2006 — Heritage runs a handful of branches in the Clarksville market, where it ranks fourth in deposit market share.