Heritage Bank Era Ends as OnPath Completes St. Tammany Acquisition

COVINGTON, LA – April 01, 2026 – The final chapter for Heritage Bank of St. Tammany has officially been written. Effective today, Heritage NOLA Bancorp, Inc. (OTC Pink: HRGG), the holding company for the bank, announced the completion of its purchase and assumption transaction with OnPath Federal Credit Union. The deal sees OnPath acquiring substantially all of Heritage Bank's assets and assuming its liabilities, including all customer deposits, effectively ending Heritage Bank's operations and marking a significant consolidation in the local financial landscape.

Following the transaction, Heritage Bank will begin the process of liquidation, with its parent company, Heritage NOLA Bancorp, set to dissolve thereafter. This move transitions Heritage Bank's customers into the fold of OnPath, one of Louisiana's fastest-growing credit unions, and sets the stage for a complex financial unwinding for the bank's shareholders.

A New Chapter for Customers and the Community

The acquisition means former Heritage Bank customers are now members of OnPath Federal Credit Union. OnPath has communicated a transition plan designed to integrate the new members smoothly. While customers will receive new OnPath-branded debit cards and need to migrate to OnPath's digital banking platform, many core services will see little disruption. Automatic payments, direct deposits, and existing checkbooks tied to Heritage Bank accounts are expected to continue functioning normally during the transition period.

Most of Heritage Bank's physical branches will remain open, rebranded under the OnPath banner. This provides continuity of service for local communities while giving new members access to OnPath's broader network of 15 branches across Southeast Louisiana. The move also brings an expanded suite of services, including enhanced digital tools and a wider range of loan and deposit products. Customer deposits, previously insured by the FDIC, will now be federally insured up to $250,000 by the National Credit Union Administration (NCUA).

This acquisition represents a strategic victory for OnPath, which has aggressively pursued growth. The credit union, which surpassed $1.1 billion in assets in mid-2025, sees the deal as a key step in expanding its footprint in St. Tammany Parish, one of the state's most rapidly developing regions. This move follows OnPath's successful 2024 merger with Louisiana Federal Credit Union, a deal that significantly scaled its operations and membership base.

Shareholder Payout Clouded by Uncertainty

For shareholders of Heritage NOLA Bancorp, the completion of the sale brings a mix of anticipation and uncertainty. The company has estimated that investors will receive a final cash distribution between $20.00 and $20.75 per share. However, this figure comes with significant caveats.

In its official announcement, the company warned that the final per-share consideration is subject to "significant variation." Several complex factors will influence the final payout, including the total corporate tax liability stemming from the transaction, the final costs associated with the company's dissolution, and expenses related to a special depositor liquidation account. The distribution of these funds to shareholders is not expected until the fourth quarter of 2026, leaving investors in a prolonged period of ambiguity.

This path to dissolution follows a turbulent period for the Covington-based bank holding company. The deal with OnPath was announced in July 2025, just over a year after a previously announced all-cash merger with MC Bancshares, Inc. was terminated in June 2024. That deal fell apart due to what the companies cited as "uncertainties in the regulatory environment and merger approval process." The subsequent agreement with OnPath provided a new exit strategy, culminating in today's announcement. Historical performance for the HRGG stock on the OTC market has been volatile, reaching a high of $19.35 in early 2024 before settling around the $18 mark in the months leading up to the acquisition's finalization.

A Final Obligation: The Depositor Liquidation Account

A unique and important component of Heritage Bank's dissolution involves a special payout to a select group of its former depositors. As part of the liquidation, payments will be made from a "liquidation account" that was established during Heritage Bank’s conversion from a mutual savings institution to a stock-based company in 2017.

This type of account is a regulatory requirement designed to protect the interests of certain depositors who held accounts at the time of such a conversion. It represents their share of the institution's net worth at that moment. In the event of a future liquidation, these eligible account holders—those who maintained their qualifying deposits since 2017—have a priority claim on these funds before any distribution is made to common stockholders.

OnPath Federal Credit Union has agreed to reimburse Heritage Bank up to $2 million to facilitate the settlement of this liquidation account, ensuring this final obligation to long-term depositors is met. The process serves as a final nod to the bank's mutual roots, ensuring that a portion of the value created during its history is returned to the community members who were part of its foundational structure before its remaining assets are distributed to its final shareholders.