LITTLETON, Mass.—The $1.8-billion Hanscom Federal Credit Union here has agreed to buy $300-million Peoples Bank, based in Chestertown, Md., the credit union reported.
The deal marks the 21st CU purchase of a bank this year.
Hanscom will acquire the majority of Peoples Bank's assets and liabilities in an all-cash transaction that’s expected to be completed in the second half of 2025, subject to all regulatory requirements and approvals, including approval of Peoples Bancorp. Inc.'s shareholders.
The transaction, approved by the boards of both organizations, represents Hanscom's entry into Maryland and expands its business offering with Peoples Bank's insurance agency subsidiary, Fleetwood Insurance Group.
The deal will give Hanscom 23 branches across Massachusetts, Maryland and Virginia.
"Hanscom and Peoples Bank share similar values, placing our members, customers and people first," said Peter Rice, CEO of Hanscom. "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. We are proud to honor Peoples Bank's legacy and look forward to welcoming its talented team and nearly 20,000 customers to Hanscom. Together, we will bring expanded financial opportunities to a region rich with potential."
Commitment To Community
Michael Bell
"Hanscom is the ideal partner to carry forward our 114-year legacy,” said Corey Duncan, chairman of the Peoples Bank board of directors. “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. We are confident this partnership with Hanscom will bring lasting value to the communities we serve.”
Hanscom FCU made $23.2 million in net income in 2023 and $3 million through September of this year, according to Call Report data. Net worth is 11.83%. Peoples Bank made $4.7 million in net income in 2023 and $2.7 million through September of this year.
The deal is the 21st of the year. As CUToday.info reported, OneAZ Credit Union’s purchase of 1st Bank Yuma two months ago set the one-year record for these agreements at 17.
“In this record year, approximately one-sixth of the banks that sold voluntarily chose to sell to a credit union,” said the pioneer of CU purchases of banks, Michael Bell. “It’s good for banks, their employees, their customers, the community and their shareholders that they have the freedom to make this choice.”
Bell, a partner and chair of the Financial Institutions Practice Group at Honigman, LLP, which is representing Hanscom, has been part of more than 75 whole-bank agreements, plus additional bank branch purchases.