HERITAGE NOLA BANCORP, INC., HERITAGE BANK OF ST. TAMMANY AND ONPATH FEDERAL CREDIT UNION SIGN AN AGREEMENT FOR THE ACQUISITION OF THE ASSETS OF HERITAGE BANK
Rhea-AI Summary
Heritage NOLA Bancorp (OTC Pink: HRGG) has announced that OnPath Federal Credit Union will acquire substantially all assets and liabilities of Heritage Bank of St. Tammany in an all-cash transaction valued at $26 million, with additional reimbursements up to $3 million.
Shareholders of Heritage NOLA Bancorp are estimated to receive between $20.00 and $20.75 per share, though final amounts may vary. The transaction, expected to close in Q2 2026, will be followed by Heritage Bank's liquidation and Heritage NOLA Bancorp's dissolution, with shareholder distributions anticipated in Q4 2026.
The agreement includes provisions for eligible depositors from Heritage Bank's 2017 mutual-to-stock conversion to receive liquidation account payments. The transaction has received unanimous board approval from all parties involved.
Positive
- All-cash transaction valued at $26 million with additional $3 million in potential reimbursements
- Estimated shareholder payout of $20.00-$20.75 per share
- Unanimous board approval from all parties
- Expanded financial services and membership benefits for customers
Negative
- Final per share consideration may vary significantly from estimated range
- Extended timeline with closing in Q2 2026 and distributions in Q4 2026
- Potential delays in liquidation and dissolution could further postpone shareholder distributions
- Complex transaction structure involving multiple steps (acquisition, liquidation, and dissolution)
News Market Reaction – HRGG
In the trading session that priced this news, HRGG gained 16.63%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Following the completion of the P&A Transaction and after all of the respective obligations of Heritage NOLA Bancorp and Heritage Bank (including settlement of the liquidation account maintained by Heritage Bank) are settled, Heritage Bank will liquidate and distribute its remaining assets to Heritage NOLA Bancorp (the "liquidation") and then Heritage NOLA Bancorp will dissolve and distribute its remaining assets to its shareholders (the "dissolution").
Heritage NOLA Bancorp's shareholders are currently estimated to receive between
The P&A agreement was unanimously approved by the Boards of Directors of Heritage NOLA Bancorp, Heritage Bank and OnPath Credit Union. The parties expect the P&A Transaction to close in the second quarter of 2026, subject to receiving all regulatory approvals, approval by Heritage NOLA Bancorp's shareholders and other customary closing conditions. The distribution of cash representing the per share consideration to Heritage NOLA Bancorp's shareholders is expected to occur in the fourth quarter of 2026, although delays in the liquidation and dissolution could delay the distribution to shareholders.
Under the terms of a liquidation account established by Heritage Bank at the time of its mutual-to-stock conversion in 2017, it is expected that eligible depositors of Heritage Bank as of the date of the conversion who continued to have eligible deposits as of each year end between the closing of the conversion and through the year end prior to the closing of the P&A Transaction could have the right to receive a liquidation account payment.
"We have long admired Heritage Bank of
"We are very excited about our new partnership with OnPath Credit Union. For our first ninety-three years Heritage Bank was mutually owned by our depositors, and we believe that this partnership is a return to our roots. Like Heritage Bank, OnPath Credit Union is a community-focused institution, and the combined resources of the combined institution will ensure that our customers, our employees and our communities have expanded financial services and membership benefits going forward. We believe that the P&A Transaction also reflects our commitment to enhance the value to our shareholders," said David Crumhorn, President and Chief Executive Officer of Heritage NOLA Bancorp and Heritage Bank.
Luse Gorman, PC is serving as legal counsel to Heritage NOLA Bancorp and Heritage Bank, and Raymond James & Associates, Inc., is serving as financial advisor to Heritage NOLA Bancorp and Heritage Bank. Honigman LLP is serving as legal counsel to OnPath Credit Union and ALM First is serving as financial advisor to OnPath Credit Union.
About OnPath Federal Credit Union
OnPath Credit Union began as ASI Federal Credit Union in 1961, serving the hardworking employees of Avondale Shipyards. Over the decades, the credit union has grown to more than 85,000 members across
About Heritage NOLA Bancorp and Heritage Bank of
Heritage NOLA Bancorp, Inc. is the holding company for Heritage Bank of
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking statements are not historical or current facts, and they often include words like "believe," "expect," "anticipate," "estimate," "intend" or similar terminology. Certain factors that could cause actual results to differ materially from those expected include delays in completing the P&A transaction, the liquidation, and the dissolution; legislative and regulatory changes that adversely affect the business in which OnPath Credit Union, Heritage NOLA Bancorp and Heritage Bank are engaged; and other factors. Except as required by law, neither OnPath Federal Credit Union, Heritage NOLA Bancorp nor Heritage Bank undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.
Contact for OnPath Credit Union:
Jared Freeman
President and Chief Executive Officer
(334) 558-7767
Contact for Heritage NOLA Bancorp and Heritage Bank:
David Crumhorn
President and Chief Executive Officer
(985) 273-3555
View original content:SOURCE Heritage NOLA Bancorp, Inc.; OnPath FCU