mergers and aquisitions
The $1.8 billion Hanscom Federal Credit Union of Littleton, Mass., said it expects to close on its proposed acquisition of the $299 million Peoples Bank in Chestertown, Md., by the second half of 2025, pending approvals from shareholders and regulators.
The definitive purchase and assumption agreement under which the credit union will acquire the majority of the Peoples Bank's assets and liabilities in an all-cash transaction was announced on Dec. 20.
The bank, founded in 1910, is a subsidiary of Peoples Bancorp, which is traded on the Over-the-Counter Pink (OTCPK) market. Although the financial terms of the deal were not disclosed, the bank has been trading from a low $34 per share in January to a high $54 per share in December.Peoples Bank has approximately 728,000 shares outstanding, according to 2023 annual report.
“The cash distribution to Peoples' shareholders will be dependent upon various factors, which will be described in the Proxy Statement to be delivered to shareholders in the coming months,” according to a joint statement of the financial institutions.
If the transaction is approved by shareholders and regulators, Peoples Bank branches will be regionally managed and continue to operate under the same name and brand. The bank’s 78 employees operate seven branches throughout Kent, Queen Anne's and Talbot counties and serve nearly 20,000 customers.
Currently, Hanscom’s 220+ employees operate 16 branches and serve more than 102,000 members.
Peoples Bank manages more than $185 million in loans, $258 million in deposits, and $35.5 million in capital, according to FDIC financial filings. At the end of this year’s third quarter, the bank recorded more than $2.7 million in net income, compared to $3.4 million in net income at the end of Q3 in 2023.
“At Hanscom, we prioritize the financial success of our members above all else. As a member owned cooperative – like all credit unions – Hanscom is committed to building and investing in our communities where everyone has a stake in that success,” Hanscom FCU President/CEO Peter Rice said in a prepared statement. “We look forward to bringing that level of personalized service and support to the Peoples Bank customers throughout Maryland and the greater DC region.”
Corey Duncan, chairman of the Peoples and Peoples Bank boards of directors, added, "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 is the 21st proposed credit union bank buy deal this year.
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