Peoples Bancorp agreed to acquire Capital Bancorp in an all-stock transaction valued at approximately $728.1 million. Capital Bancorp and its bank subsidiary would merge into Peoples and Peoples Bank respectively. The companies expect the deal to close in the first half of 2027 if required approvals and other closing conditions are secured.
Capital shareholders would receive 1.11 Peoples shares for each Capital share. The stated value equals $43.75 per Capital share, based on Peoples’ 20-day volume-weighted average closing price of $39.41 on 29 September. Former Capital shareholders are expected to own approximately 32% of Peoples after completion.
COMBINATION ADDS SCALE AND REACH
The combined company is expected to have about $14 billion of assets, $10 billion of loans and $11 billion of deposits. It would operate more than 150 banking locations across eight states and Washington, DC, alongside nationwide specialty-finance platforms.
Peoples reported $9.5 billion of assets at 30 June, while Capital reported $3.9 billion. Capital would add commercial banking in the Washington and Baltimore markets, along with digital consumer credit, government-guaranteed lending and residential mortgage businesses.
APPROVALS DEFINE THE TIMETABLE
Both boards unanimously approved the merger agreement, but completion remains subject to regulatory approvals, votes by shareholders of both companies and other customary conditions. Three Capital directors are expected to join the Peoples board at or shortly after closing, subject to Peoples’ governance process.
Peoples intends to file a Form S-4 containing a joint proxy statement and prospectus for the proposed transaction. The next milestones are that filing, the shareholder votes and regulatory decisions; failure to obtain any required approval could delay or prevent the merger.