Federal Reserve Board Announces Approval of Application by Peoples Bancorp Inc.
WASHINGTON — In a regulatory decision announced late Friday afternoon, the Federal Reserve Board formally confirmed its approval of an application submitted by Peoples Bancorp Inc., headquartered in Marietta, Ohio. The regulatory clearance paves the way for a significant multi-state banking consolidation, enabling Peoples Bancorp Inc. to proceed with its planned merger with Citizens National Corporation, an institution based in Paintsville, Kentucky.
According to the official announcement released by the central bank at 4:30 p.m. Eastern Daylight Time, the approval encompasses both holding company-level transactions and subsequent subsidiary-level integration. Through the approved transaction, Peoples Bancorp Inc. will acquire Citizens National Corporation and, in doing so, indirectly acquire its primary banking subsidiary, Citizens Bank of Kentucky, Inc., which is also headquartered in Paintsville.
The regulatory green light is a critical milestone for the participating institutions, marking the conclusion of a rigorous review process by federal banking regulators. The Federal Reserve evaluates such applications under statutory criteria that consider the financial and managerial resources of the institutions involved, their future prospects, the convenience and needs of the communities to be served, and considerations relating to financial stability and anti-money laundering compliance.
In addition to the holding company acquisition, the Federal Reserve Board announced its explicit approval for Peoples Bank—the primary banking subsidiary of Peoples Bancorp Inc., also based in Marietta, Ohio—to merge directly with Citizens Bank of Kentucky, Inc. This subsidiary-level merger is a standard structural step in transactions of this nature, allowing the acquiring parent company to consolidate its banking operations, streamline regulatory oversight, and unify its brand presence across the operational footprint.
Furthermore, the Federal Reserve’s approval grants Peoples Bank the authority to establish and operate banking branches at all existing physical locations previously operated by Citizens Bank of Kentucky, Inc. For everyday banking customers in the affected regions, this administrative authorization means that local branches will remain open, maintaining continuity of service while transitioning under the operational umbrella of Peoples Bank. The physical presence of these banking centers in Paintsville and surrounding communities is expected to be preserved, ensuring that account holders maintain uninterrupted access to teller services, loan officers, automated teller machines, and other local financial infrastructure.
The consolidation brings together institutions with established roots in their respective regional markets. Peoples Bancorp Inc. operates as a financial holding company with a longstanding presence in Ohio and neighboring states, delivering a wide array of financial products and services, including commercial and retail banking, wealth management, insurance, and trust services. By absorbing Citizens National Corporation and Citizens Bank of Kentucky, Inc., Peoples Bancorp expands its geographical footprint deeper into the Commonwealth of Kentucky, increasing its asset size, deposit base, and lending capacity within the region.
The regulatory review process conducted by the Federal Reserve Board is designed to ensure that banking organizations seeking to expand through mergers and acquisitions operate in a safe and sound manner. Federal statutes require the Board to weigh public interest factors, ensuring that the merger does not result in anticompetitive effects in relevant local banking markets and that the resulting institution remains capable of meeting the credit and financial service needs of the communities it serves. With Friday’s announcement, the Board has determined that the application by Peoples Bancorp Inc. satisfies these statutory standards.
Following the public release of the regulatory decision, attention turns to the operational integration of the two banking organizations. While the Federal Reserve has granted the necessary federal approvals, the complete integration of banking systems, operational platforms, customer account migrations, and brand transitions typically occurs over a subsequent timeframe coordinated by the leadership teams of both financial institutions. Customers of Citizens Bank of Kentucky, Inc. are generally notified in advance of any operational changes, such as debit card updates or online banking platform transitions, as the integration process moves forward.
For members of the press and financial media seeking further details regarding the administrative aspects of the approval order or related regulatory documentation, the Federal Reserve Board has provided official communication channels. Media inquiries regarding the announcement can be directed to the Board’s media relations office via email at [email protected] or by telephone at (202) 452-2955.
Last Update: September 25, 2026
