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HopFed asked to act against attorneys; Wells pushed to drop directors

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HopFed asked to act against attorneys; Wells pushed to drop directors

The following is a summary of recent activist investor news from the bank and thrift space. Each company "in play" is listed along with the activist group and that group's ownership stake in the company, where applicable.

Hopkinsville, Ky.-based HopFed Bancorp Inc.

Investor: Joseph Stilwell, Stilwell Value LLC, et al., 9.4%

Feb. 27: Joseph Stilwell's investor group demanded HopFed Bancorp's board to take action against its attorneys for legal malpractice and seek damages of more than $1 million. The group claimed that HopFed CEO John Peck breached his fiduciary duty while dealing with the company's attorneys.

Feb. 23: A special litigation committee of the bank had found no basis to sue Peck and unanimously concluded that managing several real estate investments did not distract the CEO from his job at HopFed and that his lease of a warehouse space to the company had been on fair terms.

Feb. 9: Stilwell and related investment vehicles were awarded reimbursement worth $610,312 by the Delaware Court of Chancery. The reimbursement was made for the investor group's legal expenses in a suit against HopFed Bancorp.

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San Francisco-based Wells Fargo & Co.

Feb. 6: California State Treasurer John Chiang notified Wells Fargo of his intention to attend its April shareholder meeting in order to forcefully argue to drop directors from the company's board.

Chiang had named four directors he wanted gone a week before the Federal Reserve disclosed a cease and desist order against Wells Fargo. The Fed, in announcing the consent order, said three directors were expected to step down by April and another before the end of the year. Wells Fargo did not identify those leaving.

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Seattle-based HomeStreet Inc.

Investor: Roaring Blue Lion Capital Management L.P., 5.97%

Feb. 26: Roaring Blue Lion Capital listed its nominees for HomeStreet's board. It will push for the election of Ronald Tanemura and Paul Miller to the company's board.

The investor will also ask HomeStreet shareholders to vote in favor of two proposed bylaw amendments: one requiring that separate people hold the chairman and CEO roles, and another implementing one-year director terms.

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Warwick, R.I.-based Coastway Bancorp Inc.

Investor: Lawrence Seidman, Veteri Place Corp., et al., 5.10%

Feb. 5: Lawrence Seidman and related investment vehicles disclosed their stake of 224,185 shares in Coastway Bancorp that they had purchased for roughly $4.1 million, including brokerage commissions.

The investor group has had "several conversations" with Costway Bancorp President and CEO William White regarding maximizing shareholder value.

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Wooster, Ohio-based Wayne Savings Bancshares Inc.

Investor: Joseph Stilwell, Stilwell Value LLC et al., 9.6% as of late December 2017.

Feb. 27: Joseph Stilwell's investor group, through a proxy contest, is attempting to secure a seat on Wayne Savings Bancshares' board.

The investor group, which has repeatedly called for a sale of the company, plans to nominate a director for election during the bank's 2018 annual meeting.