CHESTERTOWN — Today, Hanscom Federal Credit Union reported completion of its previously announced purchase and assumption transaction involving the majority of assets and liabilities of The Peoples Bank, based in Chestertown, following receipt of all required regulatory and shareholder approvals.
The transaction, originally publicized in December 2024 and unanimously approved by the boards of directors of both organizations, marks Hanscom’s official entry into Maryland and Washington, D.C.
As of Monday, Jan. 5, 2026, Peoples Bank now operates as Peoples Powered by Hanscom Federal Credit Union.
Systems conversion is expected to be completed this summer.
With the consummation of the transaction, Hanscom now has about $2.1 billion in total assets, serves more than 115,000 members and operates 23 branches across Massachusetts, Maryland and Virginia, according to a news release.
Learn more at www.hfcu.org.
As part of the transaction, Fleetwood Insurance Group, the insurance agency subsidiary of The Peoples Bank, has joined Hanscom Federal Credit Union, expanding the organization’s ability to serve members through integrated financial and insurance solutions.
“The completion of this acquisition marks an extraordinary milestone for both organizations,” Peter Rice, president and CEO of Hanscom Federal Credit Union, said in the news release.
“We are excited to continue to serve our 3,400 existing members in the region and welcome the Peoples team and its new members to Hanscom. We are especially proud to welcome Fleetwood Insurance Group to HFCU, expanding our ability to offer members both financial and insurance solutions through a single, trusted organization,” Rice said.
As Peoples Powered by Hanscom Federal Credit Union begins its transition, members across Maryland will gain access to an expanded range of financial wellness resources offered by Hanscom. This includes access to Hanscom’s broader financial wellness approach, including WealthTrek, the world’s first financial questing experience.
While WealthTrek’s physical locations are currently based in Massachusetts, the program reflects Hanscom’s commitment to immersive, mission-based financial education. According to the news release, Hanscom expects to explore opportunities to expand this approach to additional states in the future, including markets in and around the greater Washington, D.C. region.
The transaction was structured as a purchase and assumption of the majority of Peoples Bank’s assets and liabilities in an all-cash transaction.
Peoples will liquidate remaining assets and liabilities not purchased by Hanscom and distribute the remaining cash to its shareholders in conjunction with, or prior to, the dissolution of Peoples Bancorp Inc., according to the news release.
The final distribution will be based on factors described in the Proxy Statement previously provided to shareholders.
Hanscom has retained all Peoples Bank employees as part of the acquisition.
Members should continue to use their existing Peoples Bank branches, checks, debit cards, account numbers and digital banking services until systems integration is completed.
According to the news release, Honigman LLP served as legal counsel to Hanscom Federal Credit Union and Hovde Group LLC served as its financial advisor.
Cornerstone Advisors served Hanscom as its strategic planning partner.
Alston & Bird LLP served as legal counsel to The Peoples Bank and Olsen Palmer LLC served as its financial advisor.
