Photo by James Sanna | Banker & Tradesman Staff/File
Hanscom Federal Credit Union has announced its plan to acquire a bank, Maryland-based The Peoples Bank, in a move guaranteed to raise hackles in the banking industry.
The all-cash deal sees the Massachusetts credit union expand its footprint outside of the commonwealth for the second time.The lender’s only out-of-state branch is at the McLean, Virginia office of defense contractor MITRE, whose co-headquarters is in Bedford. The Peoples Bank serves 20,000 customers in three largely rural counties on the eastern shore of the Chesapeake Bay with seven branches.
In addition to acquiring new customers and deposits that put it within striking distance of the Washington, D.C. market, Hanscom said the deal will let it expand its business offerings via The Peoples Bank’s insurance agency subsidiary, Fleetwood Insurance Group.
“Hanscom and Peoples Bank share similar values, placing our members, customers and people first,” Hanscom CEO Peter Rice said in a statement. “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.”
The transaction is expected to be completed in the second half of 2025, subject to regulatory approvals and the OK from Peoples Bancorp Inc.’s shareholders. Following the close of the transaction, Peoples Bank branches will be regionally managed and continue to operate under the same name and brand.
“Hanscom is the ideal partner to carry forward our 114-year legacy,” Corey Duncan, chairman of The Peoples Bank board of directors said in a statement. “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 across Kent, Queen Anne’s and Talbot counties and create new opportunities for growth for our employees.”
Hanscom will have total assets of approximately $2.1 billion after the conclusion of the deal. The credit union will also serve more than 115,000 members and expand its reach with 23 branches across Massachusetts, Maryland and Virginia.
It’s rare for a credit union to buy a bank, but such moves elsewhere in the country have elicited vocal opposition from national banking trade groups. Typically, opponents cite credit unions’ tax-exempt status as an unfair competitive advantage, particularly over smaller banks.
