Home Banking MC Bancshares and Heritage NOLA Bancorp Announce Merger Agreement

MC Bancshares and Heritage NOLA Bancorp Announce Merger Agreement

The holding company for M C Bank & Trust Company, MC Bancshares, Inc., and Heritage NOLA Bancorp, Inc., the holding company for Heritage Bank of St. Tammany, have jointly announced their entry into a definitive merger agreement. This agreement will result in MC Bancshares acquiring Heritage NOLA Bancorp, marking a significant development in the Louisiana banking landscape.

The merger agreement, which has received unanimous approval from the boards of both companies, stipulates that the merger consideration will be an all-cash payment equivalent to the value of Heritage NOLA Bancorp’s adjusted tangible shareholders’ equity at the time of closing, along with an additional $6.5 million. The per share consideration for Heritage NOLA Bancorp common stock is estimated to be between $19.50 and $20.50, after accounting for outstanding stock options on a fully-diluted basis. However, it is important to note that the final per share consideration may vary significantly due to several factors, including transaction costs, termination costs of contracts, and after-tax unrealized losses in Heritage NOLA Bancorp’s securities portfolios. Shareholders of Heritage NOLA Bancorp should not assume a specific per share value until the transaction is concluded.

Chris LeBato, Chief Executive Officer of MC Bancshares and M C Bank, expressed enthusiasm about the partnership with Heritage Bank, emphasizing the shared values and community-centric approach that both banks embody. LeBato views the merger as a natural expansion of MC Bancshares’ footprint and an opportunity to strengthen their presence in St. Tammany Parish.

David Crumhorn, President and CEO of Heritage NOLA Bancorp and Heritage Bank, echoed LeBato’s sentiments, expressing excitement about the combination with MC Bank. Crumhorn highlighted the infrastructure and resources available at MC Bank, which will enhance the product offerings for Heritage Bank’s customers while maintaining the personalized service and local decision-making they have come to expect. Crumhorn believes that the corporate values and culture of both institutions align closely, setting a solid foundation for the merger.

The completion of the transaction is contingent upon regulatory approvals and the approval of Heritage NOLA Bancorp shareholders. The merger is expected to be finalized in the fourth quarter of 2023, with M C Bank becoming the surviving entity following the merger. Heritage Bank’s offices will continue to operate as branch offices of M C Bank, ensuring continuity for existing customers.

Raymond James & Associates, Inc., has been engaged as the financial advisor to Heritage NOLA Bancorp, providing a fairness opinion to its Board of Directors in conjunction with the transaction. Legal counsel for Heritage NOLA Bancorp and Heritage Bank is being provided by Luse Gorman. MC Bancshares has enlisted the services of National Capital, L.L.C., as their financial advisor, with legal counsel being provided by Fenimore Kay Harrison LLP for MC Bancshares and M C Bank. These trusted advisors will play a crucial role in guiding the merger process.

The merger between MC Bancshares and Heritage NOLA Bancorp represents an exciting development in the Louisiana banking sector, as two respected institutions join forces to provide enhanced services and value to their customers.

The merger between MC Bancshares and Heritage NOLA Bancorp holds significant implications for the Louisiana banking landscape. By combining their strengths and resources, the two institutions aim to offer an expanded range of products and services to customers while maintaining a localized and relationship-focused approach. The merger is expected to provide Heritage Bank’s customers with access to a broader product portfolio through the well-established infrastructure of MC Bank. With the transaction subject to regulatory approvals and shareholder consent, the fourth quarter of 2023 is anticipated to mark the completion of the merger. This partnership sets the stage for a strengthened banking presence in St. Tammany Parish and beyond.

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