In the second credit-union-buying-bank deal announced in two days, OnPath Federal Credit Union in Metairie, Louisiana, has agreed to buy $183 million-asset Heritage Bank of St. Tammany.

Financial details of the transaction – including the purchase price – were not disclosed in a press release Thursday. But CUToday reported that OnPath 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.

The acquisition is expected to be completed in the spring of 2026.

On Wednesday, the $1.3 billion-asset San Francisco Federal Credit Union said it plans to acquire the $287 million-asset Summit Bank across the bay in Oakland.

“We are recently seeing a resurgence of transactions, influenced by improved economic conditions, a more favorable regulatory environment and the execution of proactive strategic growth initiatives,” Luse Gorman attorney Jeff Cardone told Tyfone.

The $1.1 billion-asset OnPath said the move expands its presence in one of Louisiana’s fastest-growing regions. Heritage Bank is based across Lake Pontchartain from OnPath in Covington and also has branches in Madisonville, Slidell and Copperstill.

“This is an opportunity to expand access to our people-over-profits model and continue delivering exceptional financial service to the residents of St. Tammany Parish and beyond,” said Jared Freeman, President and CEO of OnPath.

The economies of scale achieved through the transaction will support greater operational efficiency, enhanced technology for former Heritage Bank clients, and broader access to financial solutions, OnPath said. 

David Crumhorn, CEO of Heritage Bank of St. Tammany, said the deal allows Heritage to offer greater value to its clients “while preserving the local relationships and service culture they’ve come to trust.”

The release did not say what, if any, position Crumhorn would hold with the combined organization.

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The deal is the 10th announced this year in which a credit union is buying a bank.

There were 22 CU-bank deals announced last year – the most ever. Prior to 2024, the most credit union-buying-bank deals struck in a year was 16 in 2022.

However, this year’s pace is slightly lagging 2024 as 12 credit union-bank deals had been announced by this point last year.

The most recent credit union-bank transaction announced in Louisiana was TDECU’s deal for Many-based Sabine State Bank and Trust. That transaction, however, failed to close.

The Independent Community Bankers of America Thursday said that when taxpaying community banks are acquired by billion-dollar, tax-exempt credit unions, further consolidating the financial services industry, consumers and small business owners lose.

“Billion-dollar credit unions are responsible for more than 80% of community bank acquisitions, with nearly two-thirds of acquisitions involving a bank with a positive net operating income in the preceding five years,” said ICBA President and CEO Rebeca Romero Rainey.

Heritage Bank of St. Tammany reported net income of $287,000 in the first quarter after a loss of $29,000 in 2024, according to the FDIC.

OnPath FCU has more than 84,600 members and earned nearly $2.7 million in the first quarter, a 289% increase compared to a year earlier, according to call report data from the National Credit Union Administration.

“This acquisition is more than a milestone. It’s a mission-forward step that aligns with our values and vision for the future.”

 – Jared Freeman
President and CEO
OnPath Credit Union