Massachusetts-based Hanscom Federal Credit Union (HFCU) has agreed to acquire Peoples Bancorp, the holding company for Peoples Bank, in an all-cash transaction.
Established in 1910, Peoples Bank is a commercial bank serving the businesses and residents of Kent, Queen Anne’s, and Talbot Counties in Maryland. Its parent company is listed on OTCPK.
According to the terms of the definitive purchase and assumption agreement, Hanscom Federal Credit Union will assume the majority of Peoples Bank’s assets and liabilities.
Peoples Bancorp will subsequently liquidate its remaining assets and liabilities, distributing the proceeds to its shareholders before dissolving both the holding company and the bank.
The common stock of Peoples Bancorp will no longer be publicly listed following the deal’s closure.
Peoples Bancorp and Peoples Bank boards of directors chairman Corey Duncan said: “Hanscom is the ideal partner to carry forward our 114-year legacy. Its commitment to community investment, our nation’s service members and innovation matches the values that our employees and customers hold dear.
“This combination ensures our customers and business partners gain access to a broader range of resources and innovative solutions, like Hanscom’s WealthTrek program, which we expect will redefine banking in our region.”
Through the merger, Hanscom Federal Credit Union aims to enter into Maryland and expand its offerings with the inclusion of Peoples Bank’s insurance agency subsidiary, Fleetwood Insurance Group (FIG).
Following the closing of the deal, Hanscom Federal Credit Union will have total assets of around $2.1bn. the credit union will serve more than 115,000 members and operate 23 branches across Massachusetts, Maryland, and Virginia.
The transaction has been unanimously approved by the boards of directors of both organisations.
Post-acquisition, Hanscom Federal Credit Union has committed to retaining all Peoples Bank employees and plans to enhance Peoples Bank’s community-focused initiatives.
Subject to regulatory approvals, shareholder consent, and other customary closing conditions, the merger is anticipated to be completed in the second half of 2025.
Peoples Bank branches will continue to operate under their current name and branding, with regional management oversight, upon the completion of the merger.
Established in 1953, Hanscom Federal Credit Union offers a wide range of financial services with more than $1.9bn in assets and 95,000 members.
Hanscom Federal Credit Union CEO Peter Rice said: “Through this combination, we expect to expand Peoples Bank’s ability to invest in its communities across Kent, Queen Anne’s and Talbot Counties.
“Additionally, with this enhanced geographic reach, and proximity to Washington D.C., we expect to further support our founding mission by bettering our ability to serve all individuals that serve our nation.”
For the transaction, Honigman is the legal counsel for Hanscom Federal Credit Union, with financial advice from Hovde Group. Peoples Bank is being advised by Alston & Bird as legal counsel and Olsen Palmer as financial adviser.
