Hanscom Federal Credit Union to acquire The Peoples Bank, expanding into Maryland

Hanscom Federal Credit Union (HFCU) has taken a significant step to expand its geographic footprint and diversify its financial services portfolio. The Massachusetts-based credit union has entered into a definitive agreement to acquire the majority of assets and liabilities of The Peoples Bank, a subsidiary of Peoples Bancorp, Inc. (OTCPK: PEBC). This all-cash transaction, unanimously approved by both companies’ Boards of Directors, represents a strategic move that will increase Hanscom’s assets to approximately $2.1 billion and grow its membership to over 115,000.

The acquisition also grants Hanscom Federal Credit Union entry into Maryland and the Washington, D.C., region, enhancing its service offerings with the addition of Fleetwood Insurance Group (FIG), the insurance agency subsidiary of Peoples Bank.

What the Acquisition Means for Hanscom Federal Credit Union and Peoples Bank

This acquisition is expected to deliver substantial benefits to both institutions, their employees, and the communities they serve. Hanscom CEO Peter Rice emphasized that the shared values of the two organizations were a driving factor behind the deal. He highlighted that Hanscom’s focus on integrity, innovation, and community investment aligns with Peoples Bank’s 114-year legacy of service in Kent, Queen Anne’s, and Talbot counties.

Rice explained that the acquisition would allow Peoples Bank to expand its investment in local communities while giving Hanscom Federal Credit Union greater proximity to Washington, D.C., a key market for its founding mission of serving those who serve the nation. He underscored Hanscom’s commitment to preserving Peoples Bank’s identity while introducing enhanced financial opportunities and resources to the region.

“Through this combination, we aim to strengthen Peoples Bank’s ability to serve its customers while also delivering the personalized service and community focus that Hanscom is known for,” said Rice.

Preserving Legacy While Enhancing Innovation

Peoples Bancorp Chairman Corey Duncan expressed confidence in Hanscom’s ability to uphold the legacy of Peoples Bank. He noted that Hanscom’s innovative programs, such as the WealthTrek initiative, would complement Peoples Bank’s existing services, creating new opportunities for customers and employees alike. Duncan also emphasized that the acquisition ensures continued community investment, a cornerstone of Peoples Bank’s mission since its founding in 1910.

Fleetwood Insurance Group, a key subsidiary of Peoples Bank, will also benefit from Hanscom’s expanded resources and reach. This addition aligns with Hanscom’s strategy to diversify its offerings and provide a comprehensive suite of financial and insurance services to its members and customers.

Strengthening Community Ties

Hanscom Federal Credit Union has a long-standing commitment to community engagement, particularly through its charitable foundation, which focuses on supporting active-duty and retired service members. This transaction will allow Hanscom to increase Peoples Bank’s contributions to scholarship programs, local non-profits, and educational initiatives.

Rice highlighted Hanscom’s member-owned structure as a crucial factor in its ability to reinvest in the communities it serves, ensuring that all stakeholders benefit from its growth.

Key Transaction Details

The acquisition is structured as a purchase and assumption agreement. Hanscom will acquire most of Peoples Bank’s assets and liabilities, while Peoples Bancorp will liquidate remaining assets and distribute the proceeds to shareholders. This will occur before the holding company’s dissolution.

Following the acquisition, Peoples Bank branches will continue to operate under their existing brand and regional management. Employees of Peoples Bank are expected to retain their positions, ensuring continuity of service for the bank’s nearly 20,000 customers.

The transaction is anticipated to close in the second half of 2025, pending shareholder and regulatory approvals. At that time, Peoples Bancorp’s common stock will no longer trade on public markets.

Expert Insights on Market Implications

This acquisition positions Hanscom Federal Credit Union as a stronger player in the competitive financial services market. Its expansion into Maryland, a region with significant economic activity and proximity to federal operations, aligns with its mission of supporting those who serve the nation. The integration of Fleetwood Insurance Group adds a valuable revenue stream and broadens the credit union’s capabilities, making this deal strategically significant.

The transaction also highlights the ongoing trend of regional consolidation in the banking and credit union sectors, as institutions seek to increase operational efficiency and enhance service offerings in response to evolving customer needs.