1 year ago
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Photo courtesy of DepositPhotos
On July 7th, the mutual announcement was shared by MC Bancshares, Inc. (“MC Bancshares”), the holding company for M C Bank & Trust Company (“M C Bank”), and Heritage NOLA Bancorp, Inc. (“Heritage NOLA Bancorp”), the holding company of Heritage Bank of St. Tammany (“Heritage Bank”), to affirm a solidified agreement for MC Bancshares to purchase Heritage NOLA Bancorp.
The contract is anticipated to be finalized by the end of the year, following Heritage NOLA Bancorp’s shareholder consents and supervisory approvals. At that time, M C Bank will become the remaining entity and Heritage Bank will merge with and into M C Bank.
“We are pleased to announce that we are partnering with Heritage Bank to expand our presence in St. Tammany Parish,” said Chief Executive Officer of MC Bancshares and M C Bank Chris LeBato in a news release. “As local Louisiana banks, we share similar core values and a relationship-centric approach to serving the communities that we are fortunate to be a part of. This transaction is a very natural and contiguous expansion of our current footprint.”
Heritage Bank’s current office locations will be preserved as branch office locations of M C Bank subsequent to the effective time of the merger.
“We are thrilled about the combination with M C Bank. The infrastructure that has been assembled at M C Bank over the years will enable
our customers to access a substantial product offering while still receiving the local decision making and the exceptional service they have become accustomed to at Heritage Bank,” said President and Chief Executive Officer of Heritage NOLA Bancorp and Heritage Bank David Crumhorn in a news release. “Our collective corporate values and culture are closely aligned.”
The agreement of merger was collectively implemented by both MC Bancshares and Heritage NOLA Bancorp’s board of directors. According to this agreement, at the time of closing the value of Heritage NOLA Bancorp’s adjusted tangible shareholders’ equity is equivalent to the deliberation of the all-cash merger, plus $6.5 million.
Shareholders of Heritage NOLA Bancorp are presently projected to receive between $19.50 and $20.50 in cash consideration for each share of common stock in Heritage NOLA Bancorp, based on their adjusted tangible equity as of March 31, 2023. However, the shareholders may not receive those exact stock figures at the transaction’s closing due to multiple factors related to adjustments in transaction costs, unrealized losses in securities portfolios and other compensation and employment agreements.
Luse Gorman serves as legal counsel and Raymond James & Associates, Inc. serves as the financial advisor to Heritage NOLA Bancorp.
Fenimore Kay Harrison LLP serves as legal counsel and National Capital, LLC serves as financial advisor to MC Bancshares and M C Bank.
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