Hanscom Federal Credit Union in Littleton, Massachusetts, plans to acquire the $300 million-asset Peoples Bank in Chestertown, Maryland.

Financial terms of the all-cash deal were not disclosed in a press release issued late Friday.

The $1.8 billion-asset credit union has a branch in McLean, Virginia and will now add seven more branches in proximity to Washington D.C., 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,” he said.

Rice has a background in the banking industry, having previously worked at Berkshire Bank, Eastern Bank and Fleet Bank, according to his LinkedIn profile.

The deal will also expand Hanscom’s business offering through Peoples Bank’s insurance agency subsidiary, Fleetwood Insurance Group.

Upon consummation of the transaction, Hanscom will have more than 115,000 members and expand its reach with 23 branches across Massachusetts, Maryland and Virginia.

The deal is believed to be the first acquisition of a Maryland-based bank by a credit union in 10 years. The transaction is the 21st announced this year in which a credit union is buying a bank.

Most recently, Dearborn, Michigan-based DFCU Financial announced its plans to purchase Winter Park National Bank in Winter Park, Florida.

Prior to 2024, the most credit union-buying-bank deals ever announced in a year was 16 in 2022.

There were 11 such deals announced last year.

The merger also represents the first bank acquisition for Hanscom, which named Rice as its president and CEO in 2022.

Michael Bell, an attorney at Honigman who advised Hanscom on the transaction, told Tyfone there will likely be more credit union-buying-bank deals in 2025 than in 2024.

“In addition to economics, succession planning and talent retention and acquisition remain very difficult for smaller financial institutions,” Bell said.

Peoples Bank, the banking subsidiary of Peoples Bancorp, Inc., has been in operation since 1910.

“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,” said Corey Duncan, Peoples Bank Chairman, in the release.

Hanscom FCU earned roughly $3 million through the third quarter of 2024, an 86% decrease compared to a year earlier, according to call report data from the National Credit Union Administration.

“We look forward to bringing that level of personalized service and support to the Peoples Bank customers throughout Maryland and the greater D.C. region.”

 – Peter Rice
CEO
Hanscom FCU