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The transaction, which was unanimously approved by the boards of directors of both organizations, represents Hanscom’s entry into Maryland and the expansion of its business offering with Peoples Bank’s insurance agency subsidiary, Fleetwood Insurance Group.

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, according to a press release from Hanscom.

“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.�

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.�

Corey Duncan, chairman of the 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.�

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.

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.