Massachusetts Credit Union Finalizes Acquisition of Maryland’s Peoples Bank and Insurance Services

Hanscom Federal Credit Union, based in Massachusetts, has successfully completed its acquisition of The Peoples Bank in Maryland. This milestone was achieved after obtaining all necessary regulatory and shareholder approvals.

According to the 2024 annual report from Peoples Bank, the purchase price for this transaction is set at $50 million.

With this acquisition, Hanscom Federal Credit Union now boasts approximately $2.1 billion in total assets. The credit union serves over 115,000 members and operates 23 branches across Massachusetts, Maryland, and Virginia.

This transaction also includes Fleetwood Insurance Group, a subsidiary of The Peoples Bank, which has locations in Kent County and Talbot County. Fleetwood offers a diverse range of personal and business insurance products, including property, casualty, life, marine, long-term care, and health insurance.

This acquisition signifies Hanscom’s official entry into the Maryland and Washington, D.C. markets. The credit union has expressed intentions to explore further expansion into other regional markets.

Post-acquisition, Peoples Bank will operate under the name Peoples Powered by Hanscom Federal Credit Union. Notably, Hanscom has retained all employees from the bank as part of this transition.

The deal was structured as a purchase and assumption of the majority of Peoples Bank’s assets and liabilities, executed as an all-cash transaction.

However, the acquisition has raised questions regarding its financial prudence. Chip Filson, a former credit union regulator, has expressed concerns about whether this deal serves the best interests of Hanscom’s member-owners. In his blog, Just a Member, Filson stated:

“The bottom line is that the 619 bank shareholders are getting a good deal. We can see why they would want this sale to go through. The question is whether this transaction is in the best interest of the member-owners of Hanscom FCU. Their $50 million cash outlay to the bank’s owners is 22 times the credit union’s 2024 net income.”

Topics
Massachusetts
Maryland

Hanscom Federal Credit Union, based in Massachusetts, has successfully completed its acquisition of The Peoples Bank in Maryland. This milestone was achieved after obtaining all necessary regulatory and shareholder approvals.

According to the 2024 annual report from Peoples Bank, the purchase price for this transaction is set at $50 million.

With this acquisition, Hanscom Federal Credit Union now boasts approximately $2.1 billion in total assets. The credit union serves over 115,000 members and operates 23 branches across Massachusetts, Maryland, and Virginia.

This transaction also includes Fleetwood Insurance Group, a subsidiary of The Peoples Bank, which has locations in Kent County and Talbot County. Fleetwood offers a diverse range of personal and business insurance products, including property, casualty, life, marine, long-term care, and health insurance.

This acquisition signifies Hanscom’s official entry into the Maryland and Washington, D.C. markets. The credit union has expressed intentions to explore further expansion into other regional markets.

Post-acquisition, Peoples Bank will operate under the name Peoples Powered by Hanscom Federal Credit Union. Notably, Hanscom has retained all employees from the bank as part of this transition.

The deal was structured as a purchase and assumption of the majority of Peoples Bank’s assets and liabilities, executed as an all-cash transaction.

However, the acquisition has raised questions regarding its financial prudence. Chip Filson, a former credit union regulator, has expressed concerns about whether this deal serves the best interests of Hanscom’s member-owners. In his blog, Just a Member, Filson stated:

“The bottom line is that the 619 bank shareholders are getting a good deal. We can see why they would want this sale to go through. The question is whether this transaction is in the best interest of the member-owners of Hanscom FCU. Their $50 million cash outlay to the bank’s owners is 22 times the credit union’s 2024 net income.”

Topics
Massachusetts
Maryland