OnPath Federal Credit Union in Metairie, La., has agreed to buy Heritage Bank of St. Tammany in Covington, La.
The $1.1-billion asset credit union said in a press release that it plans to buy the $183.5-million Heritage next spring. OnPath will pay $26 million in cash to Heritage NOLA Bancorp and reimburse the bank up to $2 million for the payout of its liquidation account and up to $1 million for any tax liabilities tied to the sale.
“We have long admired Heritage Bank of St. Tammany for its 100-year legacy of service and its unwavering commitment to the local community,” Jared Freeman, OnPath’s president and CEO, said in the release. “I have great respect for the values they’ve upheld and the trust they’ve built with generations of residents. … This transition not only strengthens our footprint but also reaffirms our commitment to putting people before profits.”
Raymond James and Luse Gorman advised Heritage NOLA Bancorp. ALM First and Honigman advised OnPath.