Peoples Bancorp, Inc. (“Peoples”), the holding company for Peoples Bank, with its headquarters located in Lubbock, Texas, and Cornerstone Capital Bancorp, Inc. (“Cornerstone” or the “Company”), the holding company for Cornerstone Capital Bank, today announced the signing of a final agreement that will allow Cornerstone to acquire Peoples through a merger.
“We are pleased to welcome Peoples to Cornerstone Capital Bank,” said Scott Almy, President and CEO of Cornerstone. “This combination reflects a strong strategic fit, bringing together two organizations committed to relationship banking and long-term community investment. With one of the strongest capital positions in our markets and a deep base of low-cost core funding, we are well positioned for meaningful organic growth. By uniting Peoples’ loyal customer base and strong local presence with Cornerstone’s national resources, we are building an organization that will deliver lasting value to our team members, communities, and shareholders. We’re thrilled to partner with a bank that shares our deep commitment to Mission and service. We will continue Peoples’ pursuit of being the best employer its team members have ever worked for—and the best bank its customers have ever banked with.”
This is the first bank acquisition that Cornerstone has made since its historic 2022 merger with Roscoe Bank. With assets of over $3.1 billion, the combined institution will be a stronger franchise with significant financial and strategic advantages:
- Expanded presence in the fast-growing Texas market
- Improved statewide deposit market share, moving Cornerstone to the top 20 among all Texas banks with less than $10 billion in assets, while reducing cost of deposits by approximately 68 basis points
- Enhanced power for Cornerstone’s mortgage and servicing divisions by lowering funding costs and generating accretive earnings, creating additional capacity to expand portfolio lending products and deliver more value-added services to clients
- Significant pricing and revenue synergies without compromising asset quality
- Broader balance sheet, technology, and resources available to Peoples’ customers
- Continued strength of the Peoples Bank brand and team, enhanced by complementary “Best Workplace” cultures and common Mission at both Cornerstone and Peoples
- Deepened management bench across the combined organization, with plans to retain all Peoples branches and employees
- Support for Cornerstone’s local decision-making model backed by the resources of a larger, combined organization
Diving Further In
The deal has been unanimously authorized by the boards of both businesses, but it still needs shareholder and regulatory approvals in addition to the usual closing requirements. The first quarter of 2026 is when closing is anticipated. After it is finished, Peoples Bank will function as “Peoples Bank, a Division of Cornerstone Capital Bank” within Cornerstone’s new Community Banking Division.
Leadership appointments following the merger will include:
- Larry Allen, Chairman and CEO of Peoples, joining the Boards of Cornerstone Capital Bancorp and Cornerstone Capital Bank, and serving as Area Chairman, Peoples Bank
- Todd McKee as Area Vice Chairman, Peoples Bank
- Tim Farris as Area President, Peoples Bank
- Jon Drake as Senior EVP of the combined bank
- William Booe as EVP of the combined bank
- All Branch Presidents of Peoples will continue in their current roles
Ronnie Bilbo, Brett Cate, Charles Darter, CPA, Walt Hagood, and Steve Nieman will be on Cornerstone’s new Peoples Bank Regional Advisory Board, which Allen will head.
“For many years, Peoples has focused on building strong relationships and supporting the communities we serve,” said Larry Allen, Chairman and CEO of Peoples. “This merger is a natural extension of that mission. With Cornerstone’s scale and resources, we will be able to bring new products, tools, and lending capacity to our customers, while keeping the personal approach that defines Peoples. Our team remains in place, our local commitment remains firm, and we now have an even stronger platform for growth.”
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