Metairie-based bank to be acquired by newly formed investor group

Main photo courtesy DepositPhotos. Logo courtesy Eureka Homestead.

The holding company of Metairie-based Eureka Homestead, a federal savings association, has inked a deal to be acquired by a newly formed corporation.

Eureka Homestead Bancorp Inc. plans to be acquired by Eureka Investor Group Inc., which is “headed by experienced bank investors,” according to a news release. The deal is subject to regulatory approval. They intend for the transaction to close in the first or second quarter of 2024.

The merger, which has been unanimously adopted by the boards of the company and Eureka Investor Group, provides for cash merger consideration equal to $13 million. Eureka Homestead must raise $43 million to fund the transaction. Eureka Homestead Bancorp hopes its shareholders will receive a dividend of about $20 to $22 per share upon closure of the deal.

Eureka Investor Group is a newly formed corporation headed by Lisa Narrell-Mead and Bob Goldstein, who are long-term banking directors, investors and executives. Goldstein is a banking and finance professional who has served in executive and leadership roles during his 50-year career, while Narrell-Mead has served in executive leadership roles in banking and presently serves as a director of two banks.

Eureka Homestead operates a full service location in Metairie. As of June 30, the company had $103.7 million in total assets and total equity capital of $19.3 million. The proposed transaction will merge the company into a wholly owned subsidiary of Eureka Investor Group, according to the news release.

“We want to thank the current Board of Directors of Eureka for the opportunity to expand on the Eureka legacy,” Narrell-Mead said in a news release. “We are committed to the customers and employees and are making a significant investment into the Bank which will allow us to improve our offerings of products, technology and convenience while maintaining an exceptional customer experience.”

Alan Heintzen, CEO of the company and of Eureka Homestead, said the Eureka Investor Group is making a major investment in Eureka Homestead and will create a new, full-service community bank in the New Orleans area.

“Our customers should rest assured that they will continue to see the same friendly faces they always have, and soon will be able to enjoy an expanded array of additional banking products and services,” Heintzen said. “This is an exciting win-win for our customers and the New Orleans area.”

Eureka Homestead provides customers with savings accounts and mortgage lending services. There is a full-service branch on Veterans Memorial Boulevard in Metairie. It also has a loan office on Harrison Avenue.

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