MC BANCSHARES, INC. AND HERITAGE NOLA BANCORP, INC. ANNOUNCE TERMINATION OF PROPOSED MERGER

Rhea-AI Summary

On June 14, 2024, MC Bancshares and Heritage NOLA Bancorp announced the termination of their proposed merger. Originally agreed upon on July 6, 2023, the merger was called off due to regulatory uncertainties and the merger approval process. The termination was mutually approved by the boards, with both parties agreeing to bear their own costs without penalties. Heritage announced on March 13, 2024, that MC Bancshares had withdrawn its acquisition applications. Both companies expressed confidence in their future prospects post-termination.

Positive

• MC Bancshares remains strong and well-capitalized.
• Heritage Bank continues to build value for stockholders and customers.
• No penalties or liabilities for either party due to mutual termination.

Negative

• Termination of the proposed merger may cause uncertainty among investors.
• Regulatory uncertainties and approval process issues hindered the merger.
• MC Bancshares had to withdraw its applications to acquire Heritage.

News Market Reaction – HRGG

%

1 alert

% News Effect

On the day this news was published, HRGG declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MORGAN CITY, La. and COVINGTON, La., June 14, 2024 /PRNewswire/ -- MC Bancshares, Inc. ("MC Bancshares"), the holding company for M C Bank & Trust Company, a Louisiana-chartered bank headquartered in Morgan City, Louisiana, and Heritage NOLA Bancorp, Inc. (OTC Pink Marketplace: "HRGG"), the holding company of Heritage Bank of St. Tammany (collectively, "Heritage"), a federally chartered savings bank headquartered in Covington, Louisiana, announced today that they have mutually agreed to terminate their merger agreement, previously announced on July 6, 2023, under which MC Bancshares had agreed to acquire Heritage. The companies have entered into a Mutual Termination Agreement which was approved by the Boards of Directors of both companies. The Mutual Termination Agreement provides, among other things, that each party will bear its own costs and expenses in connection with the terminated transaction, without penalties, and mutually releases the parties from any claims of liability to one another relating to the merger transaction.

On March 13, 2024, Heritage announced that it had been informed by MC Bancshares that it had withdrawn its applications to acquire Heritage.

"While it is unfortunate that we could not finalize this deal, M C Bank remains a very strong and well-capitalized community bank," said Chris LeBato, President and Chief Executive Officer of M C Bank. "We will continue to focus on our human-centric approach to banking and on strengthening the communities we serve, while staying ready for new partnership opportunities."

David Crumhorn, the President and Chief Executive Officer of Heritage and HRGG indicated that, "after extensive review of the current uncertainties in the regulatory environment and merger approval process, the Board concluded that it was no longer in the stockholders' best interest to continue to pursue the proposed merger. Nevertheless, our organization remains strong and we continue to be laser focused on building value for our stockholders, customers and community. We are excited about the future of Heritage Bank of St. Tammany and Heritage NOLA Bancorp Inc."

About MC Bancshares, Inc.

MC Bancshares, Inc. is the holding company for M C Bank & Trust Company, a Louisiana-chartered state bank. M C Bank first opened its doors in 1955 in Morgan City, Louisiana. On April 1, 1991, MC Bancshares was formed as a one-bank holding company with its solely owned subsidiary being Morgan City Bank & Trust Company. Simultaneous with the merger of the bank into the holding company, the Bank's name changed to M C Bank & Trust Company. The bank's headquarters are in Morgan City, and the bank has ten banking centers and offices in Louisiana: Amelia, Bayou Vista, Covington, Houma, Lafayette, Metairie, Morgan City, New Orleans, and Youngsville. M C Bank is a locally and privately owned institution focused on strengthening the communities in Louisiana. To learn more, visit www.mcbt.com.

About Heritage NOLA Bancorp, Inc.

Heritage NOLA Bancorp, Inc. is the holding company for Heritage Bank of St. Tammany, a federally chartered savings bank. The Bank, founded in 1924, is a community bank providing a variety of financial services to residents and businesses in and around St. Tammany Parish, Louisiana. To learn more, visit www.heritagebank.org.

Contacts:
MC Bancshares, Inc.
Christopher P. LeBato, President and Chief Executive Officer
Megan Eustis, Director of Stakeholder Relations, M C Bank
Megan.Eustis@mcbt.com
Telephone: (985) 384-2100

Heritage NOLA Bancorp, Inc.
David Crumhorn, President and CEO
Telephone: (985) 892-4565

View original content:https://www.prnewswire.com/news-releases/mc-bancshares-inc-and-heritage-nola-bancorp-inc-announce-termination-of-proposed-merger-302172465.html

SOURCE Heritage NOLA Bancorp, Inc.

FAQ

Why was the MC Bancshares and Heritage NOLA Bancorp merger terminated?

The merger was terminated due to regulatory uncertainties and the merger approval process.

What financial impact will the termination of the merger have on HRGG?

Each party will bear its own costs without penalties, and there are no claims of liability.

When was the termination of the MC Bancshares and Heritage NOLA Bancorp merger announced?

The termination was announced on June 14, 2024.

What is the stock symbol for Heritage NOLA Bancorp?

The stock symbol for Heritage NOLA Bancorp is HRGG.