Peoples Bancorp agrees to buy Capital Bancorp in all-stock deal

Key numbers

Metric	Latest	Comparison	Change	Source
Aggregate transaction value	approximately $728.1 million			SEC 8-K
Implied value per Capital share	$43.75 per share			SEC 8-K
Exchange ratio	1.11 shares of Peoples common stock			SEC 8-K
Expected combined total assets	approximately $14 billion	approximately $9.5 billion	+ $4.5 billion	Calculated from SEC 8-K
Expected combined total loans	$10 billion			SEC 8-K
Expected combined total deposits	$11 billion			SEC 8-K

What happened

Peoples Bancorp Inc. (NASDAQ: PEBO) and Capital Bancorp, Inc. (NASDAQ: CBNK) said on September 30, 2026, that they agreed to merge. Peoples will buy Capital in an all-stock deal, and Capital will merge into Peoples. The deal values Capital at about $728.1 million, or $43.75 per share, based on Peoples' 20-day volume-weighted average closing price of $39.41 per share as of September 29, 2026.

The combined company is expected to have about $14 billion of total assets, $10 billion of total loans and $11 billion of total deposits. It would have more than 150 banking locations across eight states and Washington, D.C., plus nationwide specialty financial services platforms. Former Capital shareholders are expected to own about 32% of Peoples after the deal closes. Both boards approved the agreement.

Why it matters

OptimistFi's case is that PEBO works only if the bank can keep funding prudent loan growth at acceptable spreads and turn scale into per-share earnings. This deal adds scale and a wider revenue base if it closes. Capital had $3.9 billion of assets as of June 30, 2026, $3.1 billion of gross loans and $3.4 billion of deposits.

Capital ran Commercial Banking, OpenSky, Windsor Advantage and Capital Bank Home Loans. Fee-based revenue was about 22% of Capital's total revenue in the second quarter of 2026, and Windsor Advantage's servicing portfolio was about $3.4 billion.

The filing says the deal should add to Peoples' 2027 earnings before one-time costs. It also says tangible book value earnback would be under three years, and pro forma return on average tangible common equity would be about 20%. Those results are only expected. The deal still needs regulatory approval and approval from shareholders of both companies.

Explain the financial terms

A fiscal quarter is a three-month period in the company's reporting year.

What's next

The deal is expected to close in the first half of 2027, subject to normal closing conditions, including regulatory approval and approval from Peoples and Capital shareholders. Peoples said it will hold a conference call at 10:00 a.m. Eastern Time on September 30, 2026, to discuss the planned acquisition.

Clear progress toward that timeline would support the case. Any delay in approvals or closing would weaken it.

Sources checked automatically Sep 30, 2026 · Human review: none

Thesis impactPEBO: no published thesis yet.