Bank mergers · Sunday, September 27, 2026
Fed approves Peoples Bancorp–Citizens National merger; Barr dissents on concentration
The File desk · Sep 27, 2026, 10:11 AM UTC
Status
Confirmed (Fed Board order + Barr statement, Sept. 25, 2026)
On Friday afternoon, Sept. 25, 2026, the Federal Reserve Board approved Peoples Bancorp Inc. of Marietta, Ohio, merging with Citizens National Corporation and taking over Citizens Bank of Kentucky. Peoples Bank may also merge with that bank and keep its branches. Governor Michael S. Barr said he did not approve: he wrote the deal would make banking in the Pikeville, Kentucky, area much more concentrated — the Herfindahl-Hirschman Index up more than 290 points to above 3,100 — and that the Board did not require the branch sales that are usual in such reviews.
On Friday afternoon, Sept. 25, 2026, at 4:30 p.m. Eastern, the Federal Reserve Board approved an application by Peoples Bancorp Inc. of Marietta, Ohio.
Peoples Bancorp may merge with Citizens National Corporation and thereby take over Citizens Bank of Kentucky, Inc. Both of those companies are in Paintsville, Kentucky.
Peoples Bank may also merge with that bank and keep its branches.
Governor Michael S. Barr said he did not approve.
He wrote that the deal would raise the Herfindahl-Hirschman Index, a measure of how concentrated a local banking market is, by more than 290 points to a level above 3,100 in the Pikeville, Kentucky, area.
He also wrote that the Board did not require the branch sales that are usual in reviews of deals that concentrate a market this much.
What is still unknown or disputed
- Exact deposit and branch totals, and any conditions beyond the press summary, are in the linked PDF order.
Primary sources
Every claim in this story is drawn from the documents below. If a fetch failed, that is recorded on the card.
Source 1
Federal Reserve Board announces approval of application by Peoples Bancorp Inc.
Board of Governors of the Federal Reserve System · September 25, 2026
Approval of the application by Peoples Bancorp Inc., of Marietta, Ohio, to merge with Citizens National Corporation, and thereby indirectly acquire Citizens Bank of Kentucky, Inc., both of Paintsville, Kentucky.
https://www.federalreserve.gov/newsevents/pressreleases/orders20260925a.htm
Source 2
Statement on Peoples Bancorp’s Acquisition of Citizens National by Governor Michael S. Barr
Board of Governors of the Federal Reserve System · September 25, 2026
The acquisition would increase the Herfindahl-Hirschman Index (HHI) measure of concentration by over 290 points to a level above 3100. For this reason, I do not approve.
https://www.federalreserve.gov/newsevents/pressreleases/barr-statement-20260925.htm