METAIRIE, La.—The $1.1-billion OnPath Federal Credit Union here has agreed to purchase $183.5-million Heritage Bank of St. Tammany, based in Covington, La.
The deal is expected to close in the Spring, 2026. It is the second CU purchase of a bank this week. Tuesday, the $1.3-billion San Francisco FCU agreed to buy $287-million Summit Bank.
Heritage Bank reported that OnPath has agreed to pay the bank $26 million in cash and will additionally reimburse Heritage Bank up to $2 million for the payout of its liquidation account and up to $1 million for Heritage NOLA Bancorp’s tax liabilities resulting from the P&A transaction.
"We have long admired Heritage Bank of St. Tammany for its 100-year legacy of service and its unwavering commitment to the local community. I have great respect for the values they've upheld and the trust they've built with generations of residents. Welcoming them into the OnPath Credit Union family marks a meaningful step in our continued growth and expansion across Southeast Louisiana. This transition not only strengthens our footprint but also reaffirms our commitment to putting people before profits. We are proud to extend the unique benefits of membership to Heritage Bank's clients and look forward to building lasting financial relationships with them," said Jared Freeman, president and CEO of OnPath Credit Union.
"We are very excited about our new partnership with OnPath Credit Union. For our first ninety-three years Heritage Bank was mutually owned by our depositors, and we believe that this partnership is a return to our roots. Like Heritage Bank, OnPath Credit Union is a community-focused institution, and the combined resources of the combined institution will ensure that our customers, our employees and our communities have expanded financial services and membership benefits going forward. We believe that the P&A Transaction also reflects our commitment to enhance the value to our shareholders," said David Crumhorn, president and CEO of Heritage NOLA Bancorp and Heritage Bank.
Heritage Bank lost $29,000 in net income in 2024 and made $287,000 through Q1 of 2025, according to FDIC data. OnPath made $2.7 million in net income through March of 2025 and $11 million last year, according to Call Report data. Net worth is 10.92%.
Luse Gorman, PC is serving as legal counsel to Heritage NOLA Bancorp and Heritage Bank, and Raymond James & Associates, Inc., is serving as financial advisor to Heritage NOLA Bancorp and Heritage Bank. Honigman LLP is serving as legal counsel to OnPath Credit Union and ALM First is serving as financial advisor to OnPath Credit Union.