The company will add a representative of Stilwell Group to its board. The investment firm, which has long criticized HopFed's leadership and strategy, agreed to support the company's recommendations at future annual meetings.
A court agreed with HomeStreet that Blue Lion Capital failed to comply with the company's advance-notice bylaw when it submitted director nominations and shareholder proposals.
Judges recently ordered two banks to pay the legal fees for activist investors after certain roadblocks backfired. Their missteps can serve as a lesson for other skittish institutions.