Heritage NOLA Bancorp and OnPath FCU Finalize Acquisition Agreement for Heritage Bank Assets

Heritage NOLA Bancorp Signs Agreement with OnPath FCU to Acquire Heritage Bank Assets

In a significant financial move, Heritage NOLA Bancorp, Inc. and OnPath Federal Credit Union have finalized an agreement to acquire the assets of Heritage Bank of St. Tammany. This merger represents a pivotal moment for both financial entities, marking the entrance of OnPath Credit Union into a larger market footprint while continuing the storied legacy of Heritage Bank.

On July 24, 2025, both organizations announced that OnPath will acquire substantially all assets of Heritage Bank, along with assuming its liabilities in a cash transaction valued at $26 million. This agreement not only ensures that depositors and clients of Heritage Bank will be welcomed into the OnPath family, but it also solidifies OnPath's commitment to providing enhanced financial services across Southeast Louisiana.

President and CEO of OnPath Credit Union, Jared Freeman, expressed his admiration for Heritage Bank's century-long commitment to the community. He emphasized that this acquisition is not merely a business transaction but a promise to continue the legacy of service and trust that Heritage Bank has built over generations. The integration of these two institutions is anticipated to offer local customers a broader range of services while maintaining a community focus.

David Crumhorn, CEO of Heritage NOLA Bancorp and Heritage Bank, echoed this sentiment, stating that the partnership with OnPath signifies a return to their roots as a mutually-owned institution. Together, they aim to leverage shared resources to deliver more valuable services to customers and communities, reflecting a real commitment to enhancing shareholder value.

The terms of the acquisition also entail reimbursement of up to $2 million for the payout of a liquidation account previously maintained by Heritage Bank, alongside an additional $1 million set aside for tax liabilities associated with the transaction. After fulfilling these obligations, Heritage Bank will liquidate its remaining assets to Heritage NOLA Bancorp before dissolving, with shareholders anticipated to receive between $20.00 and $20.75 per share, depending on various financial factors related to the transaction.

The boards of both financial institutions have unanimously approved the acquisition, which is expected to close in the second quarter of 2026, pending all regulatory approvals and shareholder consent. The cash distribution to shareholders is anticipated in the fourth quarter of 2026, contingent upon the completion of the liquidation and dissolution processes.

Moreover, the acquisition will also honor eligible depositors by allowing them potential rights to receive payments from the liquidation account, ensuring that long-standing clients benefit from the transition.

With OnPath Credit Union's roots tracing back to its establishment as ASI Federal Credit Union in 1961, the institution has evolved significantly, now boasting over 85,000 members across Southern Louisiana and managing over $1.1 billion in assets as of June 2025. The merger with Heritage Bank will enhance its mission to guide members towards financial success and prosperity.

As these institutions prepare for this pivotal transition, the future appears bright for both organizations and their communities. Members and shareholders alike can look forward to the benefits this acquisition promises, including enhanced financial services and a continued commitment to community involvement and support.

In conclusion, this merger serves as a reminder of the importance of community-focused banking and the ongoing evolution of financial services supporting local populations. As OnPath merges with Heritage Bank, both entities are poised to further strengthen their ties within the local economy and focus on their shared mission of serving the community.

For further information, visit Heritage Bank's website and OnPath Credit Union's website for updates on the acquisition and future services.