Peoples Bancorp to Acquire Capital Bancorp in $728M All-Stock Merger
PEBO sits 36% above its 52-week low of $27.49.
Summary
Peoples Bancorp agreed to acquire Capital Bancorp for approximately $728.1 million in stock, creating a ~$14 billion financial services franchise with expanded Mid-Atlantic presence and diversified nationwide specialty businesses. The merger agreement was unanimously approved by both boards, and the transaction is intended to qualify as a tax-free reorganization.
Updated with a GlobeNewswire report · What changed
Updates
· GlobeNewswire — Peoples intends to conduct a conference call at 10:00 a.m. Eastern Time on September 30, 2026 to discuss the planned acquisition.
- Merger Structure — Capital Bank, N.A. will subsequently merge with and into Peoples' wholly owned subsidiary, Peoples Bank.
- Combined Footprint — The combined company is expected to have over 150 banking locations across eight states and Washington, D.C., and will have nationwide specialty financial services platforms.
- Approvals and Tax Status — The merger agreement was unanimously approved by the Boards of Directors of both companies, and the transaction is intended to qualify as a tax-free reorganization for federal income tax purposes.
All 5 details
- Capital Bank, N.A. will subsequently merge with and into Peoples' wholly owned subsidiary, Peoples Bank.
- The combined company is expected to have over 150 banking locations across eight states and Washington, D.C.
- The combined company will have nationwide specialty financial services platforms.
- The merger agreement was unanimously approved by the Boards of Directors of both companies.
- The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes.
Key Events · M&A and Partnerships · PEBO
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New · · GlobeNewswire
Subsidiary Bank Merger
Capital Bank, N.A. will subsequently merge with and into Peoples' wholly owned subsidiary, Peoples Bank.
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New · · GlobeNewswire
Tax-Free Reorganization
The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes.
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New · · GlobeNewswire
Conference Call Scheduled
Peoples intends to conduct a conference call at 10:00 a.m. Eastern Time on September 30, 2026 to discuss the planned acquisition.
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Updated · · GlobeNewswire
Definitive Merger Agreement Signed
On September 29, 2026, Peoples Bancorp and Capital Bancorp entered into an Agreement and Plan of Merger, with Capital merging into Peoples in an all-stock transaction valued at approximately $728.1 million. The merger agreement was unanimously approved by the Boards of Directors of both companies.
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Updated · · GlobeNewswire
Pro Forma Ownership and Scale
Former Capital shareholders are expected to own approximately 32% of the combined company, which will have roughly $14 billion in total assets, $10 billion in loans, and $11 billion in deposits across eight states and Washington D.C. The combined company is expected to have over 150 banking locations across eight states and Washington, D.C.
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Exchange Ratio and Consideration
Capital shareholders will receive 1.11 shares of Peoples common stock for each Capital share, equivalent to $43.75 per share based on Peoples' 20-day VWAP of $39.41 as of September 29, 2026.
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Financial Impact and Accretion
The transaction is expected to be ~19% accretive to fully-phased 2027E EPS with a tangible book value earnback period under three years and pro forma return on average tangible common equity of approximately 20%.
Analysis · PEBO · Finance
A definitive agreement has been signed for Peoples Bancorp to acquire Capital Bancorp in an all-stock deal valued at approximately $728.1 million, or $43.75 per Capital share. Under the terms, Capital shareholders will receive 1.11 Peoples shares for each Capital share, giving them roughly 32% ownership of the combined company. The transaction is expected to be immediately accretive to 2027 earnings with a tangible book value earnback under three years, and it pushes Peoples past the $10 billion asset threshold with meaningful scale. This transformative deal reshapes Peoples' footprint in the Washington D.C. and Baltimore markets while adding nationwide specialty businesses including OpenSky, Windsor Advantage, and Capital Bank Home Loans. The merger agreement was unanimously approved by the Boards of Directors of both companies, and the transaction is intended to qualify as a tax-free reorganization for federal income tax purposes. Capital Bank, N.A. will subsequently merge with and into Peoples' wholly owned subsidiary, Peoples Bank, and the combined company is expected to have over 150 banking locations across eight states and Washington, D.C.
How filings like this one have moved
In the 30 days to Sep 30, 2026, 42.2% of the 325 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.39%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, PEBO was trading at $37.32 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $27.49 to $42.29. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.