Capital Bancorp to Merge with Peoples Bancorp
Capital Bancorp, Inc., based in Rockville and the parent company of Capital Bank, has announced plans to merge with Ohio’s Peoples Bancorp Inc. This all-stock transaction is valued at around $728.1 million.
The agreement was revealed on September 30. As part of this arrangement, Capital Bancorp will merge into Peoples Bancorp, and Capital Bank, N.A. will then merge into Peoples Bank.
Headquartered in Rockville, Capital Bancorp operates various business segments, including Commercial Banking, OpenSky, Windsor Advantage, and Capital Bank Home Loans. By June 30, 2026, the company reported total assets of $3.9 billion, with $3.1 billion in gross loans and $3.4 billion in deposits.
This merger is expected to greatly enhance Peoples’ footprint in the Washington, D.C., and Baltimore regions. Once finalized, the combined entity should have around $14 billion in assets, $10 billion in loans, and $11 billion in deposits, including over 150 banking locations spread across eight states and Washington, D.C., alongside several national financial services operations.
Tyler Wilcox, President and CEO of Peoples, mentioned that as the company neared the $10 billion asset mark, they took a careful approach to find the right strategic opportunity. He believes that Capital’s commercial banking will enrich their presence in Washington and Baltimore while providing fresh growth avenues through its specialty businesses.
On the other hand, Capital CEO Edward F. “Ed” Barry referred to Peoples as an “excellent strategic partner,” highlighting that this merger blends Capital’s commercial banking and specialized services with Peoples’ larger balance sheet and wider range of products.
According to the terms of the agreement, shareholders of Capital will receive 1.11 shares of Peoples common stock for each share they possess. Given Peoples’ 20-day volume-weighted average closing price of $39.41 on September 29, this values Capital shares at about $43.75 each.
Following the merger, Capital shareholders are expected to hold around 32% of the combined company. Additionally, three members from Capital’s Board of Directors are anticipated to join the Peoples board either at or shortly after the merger completion. The agreement has received unanimous approval from the boards of both companies.
The merger is projected to be finalized in the first half of 2027, contingent upon regulatory and shareholder approvals, along with other customary conditions.
