Federal Reserve Board announces approval of application by Peoples Bancorp Inc.
For release at 4:30 p.m. EDT
WASHINGTON—In a regulatory decision finalized late Friday afternoon, the Federal Reserve Board formally announced its approval of a significant regional banking combination involving institutions across Ohio and Kentucky. The regulatory clearance permits Peoples Bancorp Inc., a financial holding company headquartered in Marietta, Ohio, to proceed with its planned acquisition and merger with Citizens National Corporation, based in Paintsville, Kentucky.
According to the official announcement released by the central bank at 4:30 p.m. EDT, the transaction will also encompass an indirect acquisition of Citizens Bank of Kentucky, Inc., which is likewise rooted in Paintsville. The approval marks a major milestone in the ongoing consolidation and strategic expansion efforts within the Midwestern and Appalachian banking sectors, bringing together established community financial institutions with deep regional footprints.
In addition to approving the holding company-level transaction, the Federal Reserve Board granted regulatory clearance for Peoples Bank—the wholly owned banking subsidiary of Peoples Bancorp Inc., also operating out of Marietta, Ohio—to execute a direct merger with Citizens Bank of Kentucky, Inc. As part of this operational integration, the regulatory approval authorizes Peoples Bank to establish and operate official banking branches at all existing locations currently utilized by Citizens Bank of Kentucky, Inc. This provision ensures that customers of the acquired institution will maintain continuous physical access to banking services, teller operations, and customer support channels as the transition unfolds.
The regulatory review process conducted by the Federal Reserve evaluates multiple statutory factors, including the financial and managerial resources of the institutions involved, their future prospects, the convenience and needs of the communities to be served, and considerations related to financial stability and anti-money laundering compliance. By issuing its approval on Friday, the Board cleared the primary federal regulatory hurdle required for the transaction to move toward its final closing stages, subject to customary closing conditions and any remaining state-level administrative procedures.
For both banking organizations, the transaction represents a continuation of their respective corporate strategies. Peoples Bancorp Inc. has historically pursued a growth model that combines organic market expansion with targeted, strategic acquisitions of community banks that share a commitment to relationship-based financial services. Meanwhile, Citizens National Corporation and its subsidiary, Citizens Bank of Kentucky, have long served individuals, families, and local businesses in Eastern Kentucky, providing essential credit, deposit, and wealth management services tailored to the economic landscape of the region.
As the two organizations prepare to combine operations, banking analysts and industry observers will be watching closely to see how the integrated institution leverages the branch network of Citizens Bank of Kentucky under the Peoples Bank banner. The retention of the physical branches is expected to provide a seamless experience for existing retail and commercial banking customers, minimizing disruption while introducing them to an expanded suite of financial products, enhanced digital banking platforms, and potentially higher lending limits supported by the larger balance sheet of the combined parent company.
Representatives for the institutions involved are expected to release further details regarding operational timelines, systems integrations, and branding transitions in the coming weeks as preparations for the legal closing move forward.
For media inquiries regarding the announcement, the Federal Reserve Board has directed interested parties to send an email to [email protected] or call the central bank’s media relations office at (202) 452-2955.
Last Update: September 25, 2026
