Hanscom Federal Credit Union Merges with The Peoples Bank, Expanding Community Services in Maryland

Hanscom Federal Credit Union Merges with The Peoples Bank

Overview of the Merger

Hanscom Federal Credit Union (HFCU) has recently entered into a significant deal with Peoples Bancorp, Inc., the parent company of The Peoples Bank. This union is designed to amplify community investments throughout Kent, Queen Anne's, and Talbot Counties in Maryland. The transaction was approved unanimously by the respective boards of directors and is poised to mark Hanscom's official expansion into the Maryland market.

As part of this acquisition, Hanscom Federal will take over a majority of Peoples Bank's assets and liabilities in an all-cash deal, significantly enlarging its financial presence. Following the transaction's completion, Hanscom is expected to have around $2.1 billion in total assets, serve over 115,000 members, and operate 23 branches in Massachusetts, Maryland, and Virginia.

Mission Alignment and Future Goals

Peter Rice, the CEO of Hanscom, expressed the excitement surrounding this merger, emphasizing that both organizations share a commitment to putting their members and communities first. This collaboration is expected to enhance the services provided by Peoples Bank and assist in their community investments.

Rice stated, "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."

The CEO further noted Hanscom's dedication to the financial success of its members, along with its cooperative model which promotes community investment. This merger is set to bring personalized financial services to the residents of Maryland, enhancing their overall banking experience alongside the existing local offerings.

Community Support Initiatives

Hanscom Federal Credit Union has a strong history of community engagement through its charitable foundation, focusing particularly on assisting active duty and retired service members. The credit union plans to boost the current levels of community giving and philanthropic initiatives at Peoples Bank, including contributions to local non-profits and education programs.

Corey Duncan, Chairman of the Peoples Bank’s Boards of Directors, also voiced his optimism about this merger. He called Hanscom the ideal partner to uphold their 114-year legacy, stressing that both parties share a commitment to innovation and community investment. Duncan expressed confidence that this partnership will deliver lasting value and growth opportunities for the communities served.

Transaction Details and Timeline

The acquisition will proceed as a purchase and assumption agreement, focusing on the majority of Peoples Bank's assets. After the completion of this transaction, remaining assets and liabilities will be managed and liquidated by Peoples, with cash distributed to shareholders accordingly.

This transaction is slated for completion in the latter part of 2025, subject to necessary regulatory approvals, including that of Peoples Bancorp's shareholders. Following the successful acquisition, all Peoples Bank branches will continue to operate under their established name, ensuring continuity for customers.

Conclusion

The merger of Hanscom Federal Credit Union and The Peoples Bank represents an important step in expanding community-focused banking services in Maryland. With enhanced resources and a commitment to customer service, both institutions are positioned to thrive in the coming years. As Hanscom welcomes the Peoples Bank team and clientele, the focus will remain on serving the community’s needs and driving financial success for all stakeholders.

In summary, this merger is not just a strategic business decision; it’s a commitment to forging lasting relationships and making a positive impact in the local communities they aim to serve. For those interested in learning more about Hanscom Federal Credit Union, visit their website for details on offerings and services.