Investor group ends deal to buy Eureka Homestead in La.

An investor group no longer plans to buy Eureka Homestead Bancorp in Metairie, La.

Eureka Investor Group agreed to pay the $96.8 million-asset bank $325,000 in fees tied to the termination. About $200,000 of the fees were paid in April through the release of funds from an existing escrow account.

The termination occurred because the investor group was unable to raise the funds needed to close the deal on time. The merger agreement, which was announced in August 2023, had been extended several times.

Eureka Homestead and its bank “remain highly capitalized and the board will continue to explore all possible strategic alternatives in order to build value for our stockholders, customers and community,” Cecil Haskins Jr., the company’s president, said in a press release.