Announcement • Aug 06

Eureka Investor Group, Inc. reached an agreement to acquire Eureka Homestead Bancorp, Inc. (OTCPK:ERKH) for $22.6 million.

Eureka Investor Group, Inc. reached an agreement to acquire Eureka Homestead Bancorp, Inc. (OTCPK:ERKH) for $22.6 million on August 4, 2023. Agreement provides for cash merger consideration equal to $13.0 million. In addition, immediately prior to closing, Eureka Homestead Bancorp will be permitted, subject to regulatory approval, to pay a dividend equal to an amount by which the Company's adjusted tangible shareholders' equity, as defined in the Merger Agreement, exceeds $10.0 million. Assuming regulatory approval to pay the dividend, Company shareholders are currently estimated to receive between $20.00 and $22.00 in cash consideration for each share of Company common stock (the "per share consideration"). The proposed transaction will merge Eureka Homestead Bancorp, Inc. into a wholly owned subsidiary of Eureka Investor Group, with Eureka Homestead Bancorp surviving the merger. Upon consummation of the proposed transaction, Eureka Investor Group will own 100% of the outstanding shares of Eureka Homestead Bancorp and its banking subsidiary, Eureka Homestead. Agreement has been unanimously adopted by the boards of Eureka Homestead Bancorp and Eureka Investor Group. The transaction is subject to a variety of closing conditions, including the receipt of approvals from the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and Eureka Homestead Bancorp's shareholders. In addition, the transaction is conditioned on Eureka Investor Group raising at least $43.0 million to fund the purchase price and add additional capital to the resulting organization. The transaction is expected to close in the first or second quarter of 2024. Eureka Homestead Bancorp and Eureka Homestead are being advised by Performance Trust Capital Partners as financial advisor and Luse Gorman, PC as legal counsel. Eureka Investor Group is being advised by Otteson Shapiro LLP as legal counsel.

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Eureka Investor Group, Inc. reached an agreement to acquire Eureka Homestead Bancorp, Inc. (OTCPK:ERKH) for $22.6 million.

Eureka Homestead Bancorp, Inc., Annual General Meeting, May 18, 2022

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