Peoples Bancorp Inc. and Capital Bancorp Inc. have entered into a definitive agreement for Peoples to acquire Capital in an all-stock transaction valued at approximately $728.1 million. Under the terms of the Merger Agreement, Capital will merge with and into Peoples, with Peoples continuing as the surviving corporation. Following this merger, Capital Bank, N.A. will merge with and into Peoples Bank, Peoples' wholly owned subsidiary.
The transaction is structured as a tax-free reorganization under Section 368(a) of the Internal Revenue Code. Shareholders of Capital will receive 1.11 shares of Peoples common stock for each share of Capital common stock they own. Based on Peoples' 20-day volume-weighted average closing price of $39.41 per share as of September 29, 2026, the exchange value is approximately $43.75 per share. Former Capital shareholders are expected to own approximately 32% of the combined company upon completion.
As of June 30, 2026, Capital reported total assets of approximately $3.9 billion, gross loans of $3.1 billion, and total deposits of $3.4 billion. The combined entity is projected to have approximately $14 billion in total assets, $10 billion in total loans, and $11 billion in total deposits, with over 150 banking locations across eight states and Washington, D.C.
The boards of directors for both Peoples and Capital have unanimously approved the agreement. The transaction is expected to close in the first half of 2027, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of both companies. The deal is anticipated to be immediately accretive to Peoples' estimated earnings in 2027 before one-time costs, with a tangible book value earnback period of under three years.
