Rockville-based Capital Bancorp, Inc., the parent company of Capital Bank, has entered into an agreement to merge with Ohio-based Peoples Bancorp Inc. in an all-stock transaction valued at approximately $728.1 million.
The companies announced the agreement on September 30. Under the deal, Capital Bancorp will merge into Peoples Bancorp, while Capital Bank, N.A. will subsequently merge into Peoples Bank.
Capital Bancorp is headquartered in Rockville and operates several business segments, including Commercial Banking, OpenSky, Windsor Advantage and Capital Bank Home Loans. As of June 30, 2026, the company reported $3.9 billion in total assets, $3.1 billion in gross loans and $3.4 billion in deposits.
The merger will significantly expand Peoples’ presence in the Washington, D.C. and Baltimore markets. Once completed, the combined company is expected to have approximately $14 billion in assets, $10 billion in loans and $11 billion in deposits, with more than 150 banking locations across eight states and Washington, D.C., along with several nationwide financial services businesses.
“As Peoples approached $10 billion in assets, we were deliberate and patient in pursuing the right strategic opportunity,” Peoples President and CEO Tyler Wilcox said. Wilcox said Capital’s commercial banking operations will deepen the company’s presence in the Washington and Baltimore markets while its specialty businesses will provide additional opportunities for growth.
Capital CEO Edward F. “Ed” Barry called Peoples an “excellent strategic partner,” saying the combination will pair Capital’s commercial banking and nationwide specialty businesses with Peoples’ larger balance sheet and broader product offerings.
Under the agreement, Capital shareholders 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 as of September 29, the deal values Capital at approximately $43.75 per share.
Capital shareholders are expected to own approximately 32% of Peoples following completion of the merger. Three members of Capital’s Board of Directors are also expected to join the Peoples board at or shortly after closing. The boards of both companies unanimously approved the agreement.
The acquisition is expected to close during the first half of 2027, subject to regulatory approval, approval from shareholders of both companies and other customary closing conditions.
