Transaction Enhances the Peoples Bank's Ability to Invest in Communities of Kent, Queen Anne's and Talbot Counties
LITTLETON, Mass. and CHESTERTOWN, Md., Dec. 20, 2024 /PRNewswire/ -- Hanscom Federal Credit Union ("HFCU" or "Hanscom") and Peoples Bancorp, Inc. (OTCPK: PEBC) ("Peoples"), the holding company for The Peoples Bank ("Peoples Bank"), today announced that the companies have entered into a definitive purchase and assumption agreement under which Hanscom will acquire the majority of Peoples Bank's assets and liabilities in an all-cash transaction.
The transaction, which was unanimously approved by the Boards of Directors of both organizations, represents Hanscom's entry into Maryland and expands its business offering with Peoples Bank's insurance agency subsidiary, Fleetwood Insurance Group ("FIG"). Upon consummation of the transaction, Hanscom will have total assets of approximately $2.1 billion, serve more than 115,000 members, and expand its reach with 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."
Mr. Rice added, "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. 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 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."
Through its charitable foundation, HFCU is committed to making a positive impact on the lives of others, especially active duty and retired service members, by building and improving programs to enhance the communities it serves. HFCU expects to increase Peoples Bank's current levels of community giving and philanthropy, including its scholarship programs and financial support of local non-profit and education initiatives.
Transaction Details, Timing, and Approvals
The transaction is structured as a purchase and assumption of the majority of Peoples Bank's assets and liabilities in an all-cash transaction. Following the closing of the transaction, Peoples will liquidate the remaining assets and liabilities not purchased by Hanscom, and will distribute the remaining cash to its shareholders in conjunction with, or prior to, the dissolution of the holding company and the bank. 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. Hanscom also plans to retain all employees of Peoples Bank after the acquisition.
The transaction is 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, as well as other customary closing conditions.
Following the close of the transaction, Peoples Bank branches will be regionally managed and continue to operate under the same name and brand. The Peoples Bancorp. Inc.'s common stock will no longer be listed on any public market.
Advisors
Honigman, LLP is serving as legal counsel to Hanscom Federal Credit Union and Hovde Group LLC is serving as its financial advisor. Alston & Bird LLP is serving as legal counsel to The Peoples Bank and Olsen Palmer LLC is serving as its financial advisor.
About Hanscom Federal Credit Union
Hanscom, with over $1.9 billion in assets and more than 95,000+ members, is one of Massachusetts' most trusted credit unions. Established in 1953 on Hanscom Air Force Base, Hanscom offers a full range of financial services and resources designed to help members achieve financial success, from mobile and online banking to financial education programs. Guided by its core values-Integrity, Members First, Teamwork, Innovation, and Empathy-its team of 220+ employees is committed to putting members at the heart of everything it does. With 16 branches, remote support representatives, 100,000+ service centers, and over 5,400 Shared Branch locations nationwide, Hanscom offers unparalleled convenience and support. Discover more, including free financial resources and seminars on www.hfcu.org.
About The Peoples Bank
Peoples is the holding company for Peoples Bank, a federally insured community bank. Founded in 1910, it remains an independent commercial bank serving the businesses and residents of Kent, Queen Anne's, and Talbot Counties. Peoples Bank's primary business is attracting deposits and originating loans in the local market. It has developed an attractive franchise of seven full-service branch offices and insurance agency subsidiary, FIG, and is recognized for delivering personal attention and professional service.
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts but are based on certain assumptions and reflect current beliefs and expectations. These forward-looking statements are subject to risks and uncertainties and other important factors that could cause actual results, performance, or achievement to differ materially from any future results, performance, or achievements discussed or implied by such forward-looking statements. Such risks include but are not limited to: (i) the financial performance and condition of Hanscom, Peoples and Peoples Bank; (ii) the ability of Hanscom, Peoples and Peoples Bank to obtain necessary regulatory, shareholder, and counterparty approvals for the transactions described herein; (iii) customer and/or employee acceptance of the purchase and assumption of Peoples Bank by Hanscom; and (iv) economic, interest rate, and stock market conditions. The information set forth herein bespeaks caution and speaks only as of the date hereof, and Hanscom, Peoples and Peoples Bank disclaim any intention or obligation to update the information contained in this press release.
Media Contacts
Hanscom Federal Credit Union:
Andy Ravens
[email protected]
The Peoples Bank:
Corey Duncan
[email protected]
(410) 778-3500
SOURCE Hanscom Federal Credit Union
