Capital Bancorp, Inc., located in Rockville and the parent company of Capital Bank, has reached a merger agreement with Ohio-based Peoples Bancorp Inc. The all-stock transaction is valued at approximately $728.1 million and was announced on September 30.
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As part of the merger, Capital Bancorp will be integrated into Peoples Bancorp, and Capital Bank, N.A. will subsequently merge into Peoples Bank. Capital Bancorp operates various business segments, including Commercial Banking, OpenSky, Windsor Advantage, and Capital Bank Home Loans. As of June 30, 2026, the company reported total assets of $3.9 billion, gross loans of $3.1 billion, and deposits totaling $3.4 billion.
This merger will significantly enhance Peoples’ footprint in the Washington, D.C. and Baltimore regions. The combined entity is projected to have around $14 billion in assets, $10 billion in loans, and $11 billion in deposits, alongside more than 150 banking locations across eight states and Washington, D.C., as well as various nationwide financial services.
Peoples President and CEO Tyler Wilcox noted the strategic opportunity presented by this merger as Peoples nears the $10 billion asset mark. He emphasized that Capital's commercial banking operations would enhance their business in the Washington and Baltimore areas, and its specialty businesses would facilitate further growth.
Edward F. “Ed” Barry, CEO of Capital, described Peoples as an “excellent strategic partner,” indicating that the merger will combine Capital’s commercial banking and specialty businesses with Peoples’ greater balance sheet and diverse product offerings.
Under the terms of the agreement, Capital shareholders will receive 1.11 shares of Peoples common stock for each share of Capital common stock they hold. This valuates Capital at approximately $43.75 per share, based on Peoples’ 20-day volume-weighted average closing price of $39.41 as of September 29. Following the merger's completion, Capital shareholders are anticipated to own about 32% of Peoples. Additionally, three members of Capital’s Board of Directors are expected to join the Peoples board shortly after the merger closes.
The acquisition is projected to finalize in the first half of 2027, pending regulatory approvals and shareholder consent from both companies.