Peoples Bancorp agrees to buy Capital Bancorp in $728.1 million all-stock deal
Peoples Bancorp Inc., based in Marietta, Ohio, announced on September 30, 2026, that it has agreed to acquire Capital Bancorp, Inc. of Rockville, Maryland, in an all-stock transaction valued at approximately $728.1 million.
Deal terms
Under the agreement, Capital will merge into Peoples, and Capital Bank, N.A. will merge into Peoples Bank. Capital shareholders will receive 1.11 shares of Peoples common stock for each Capital share. The companies said that values each Capital share at $43.75, based on Peoples' 20-day volume-weighted average closing price of $39.41.
After the deal closes, former Capital shareholders are expected to own about 32% of the combined company. Three members of Capital's board are expected to join the Peoples board at or shortly after closing.
The transaction is expected to close in the first half of 2027. It requires regulatory approvals and the approval of shareholders of both companies.
The combined bank
According to the companies, the combined bank would have approximately $14 billion in total assets, $10 billion in loans and $11 billion in deposits, with more than 150 banking locations across eight states and Washington, D.C.
Capital runs four business lines: commercial banking in the Washington, D.C. and Baltimore markets; OpenSky, a digital consumer credit platform; Windsor Advantage, which services a portfolio of about $3.4 billion; and Capital Bank Home Loans, a residential mortgage business.
Peoples said it expects the deal to be immediately accretive to its estimated 2027 earnings, before one-time costs, with an earnback of tangible book value dilution in under three years. It projects a pro forma return on average tangible common equity of about 20%. These are company projections.
What the executives said
"We were looking for a transaction and a partner that strengthens our franchise well beyond scale alone, and Capital does exactly that," said Tyler Wilcox, president and chief executive of Peoples. He added that Capital's commercial banking franchise deepens Peoples' presence in the Washington, D.C. and Baltimore markets.
Edward F. Barry, chief executive of Capital, said: "Peoples is an excellent strategic partner for Capital because it understands and values the diversified model we built."
Raymond James & Associates is financial adviser to Peoples, with Dinsmore & Shohl LLP as legal counsel. Stephens Inc. is financial adviser to Capital, with Squire Patton Boggs (US) LLP as legal counsel.
Why it matters
The deal extends a regional bank from Ohio into the Washington, D.C. and Baltimore markets and adds a national consumer credit and loan-servicing business. With the combined lender at about $14 billion in assets, it is a sizeable step for both companies, though the transaction still needs regulators and shareholders to sign off before it can close next year.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
