MC Bancshares will acquire holding company for Heritage St. Tammany bank

MC Bancshares Inc., the holding company for Morgan City-based M C Bank & Trust Co., will acquire the holding company for Heritage Bank of St. Tammany.

MC Bancshares and Heritage NOLA Bancorp Inc. have announced that they have entered a “definitive merger agreement,” the Morgan City company said in a press release.

The boards of both holding companies have adopted the merger agreement under which Heritage NOLA will be acquired for cash equal to the value of its adjusted tangible shareholders’ equity at the time of closing plus $6.5 million.

Based on Heritage NOLA’s adjusted equity as of March 31, shareholders will receive a tentatively valued $19.50-$20.50 per share of common stock. “on a fully-diluted basis after giving effect to outstanding stock options.” The price may change based on transaction costs and other factors.

"We are pleased to announce that we are partnering with Heritage Bank to expand our presence in St. Tammany Parish," said Chris LeBato, CEO of MC Bancshares and M C Bank. "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."

"We are thrilled about this combination with M C Bank,” said David Crumhorn, president and CEO of Heritage NOLA Bancorp. “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. Our collective corporate values and culture are closely aligned."

The transaction is subject to regulatory approvals and the approval of the shareholders of Heritage NOLA Bancorp, and is expected to close in the fourth quarter of 2023.

At the effective time, Heritage Bank will be merged with and into M C Bank with M C Bank as the surviving entity.

Following the effective time of the merger, M C Bank will continue to operate Heritage Bank's offices as branch offices of M C Bank. Heritage Bank's website says the company currently has offices in Covington, Slidell and Madisonville.

Raymond James & Associates, Inc., is acting as financial adviser to Heritage NOLA Bancorp and rendered a fairness opinion to the Board of Directors of Heritage NOLA Bancorp in conjunction
with this transaction.

Luse Gorman is serving as legal counsel to Heritage NOLA Bancorp and Heritage Bank. National Capital L.L.C., is acting as financial adviser to MC Bancshares. Fenimore Kay Harrison LLP is serving as legal counsel to MC Bancshares and M C Bank.