Louisiana credit union to acquire in-state bank

Metairie, La.-based OnPath Federal Credit Union is expanding in the southeast part of the state by acquiring Covington-based Heritage Bank of St. Tammany for $26 million. .The deal is expected to close next spring. The $1.1 billion credit union is the fourth-largest in the state and has more than 85,000 members in south Louisiana. The deal will reportedly enable greater operational efficiency, better technology for former clients of the $183 million Heritage Bank along with more access to financial solutions. OnPath CU is expected to reimburse Heritage Bank up to $2 million for the payout of its liquidation account and up to $1 million for holding company Heritage NOLA Bancorp's tax liabilities from the transaction.“This acquisition is more than a milestone. It’s a mission-forward step that aligns with our values and vision for the future,” said OnPath Credit Union President and CEO Jared Freeman.Heritage Bank of St. Tammany CEO David Crumhorn called OnPath “a respected, values-driven organization with a proven track record of service and growth. This combination allows us to offer even greater value to our clients while preserving the local relationships and service culture they’ve come to trust.”