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Cornerstone Capital Bancorp Inc., the parent company of Cornerstone Capital Bank, said Friday it has agreed to acquire Peoples Bancorp Inc., the holding company for Texas-based Peoples Bank.
The all-stock merger marks Cornerstone’s first bank acquisition since its 2022 merger with Roscoe Bank. The combined institution will have about $3.1 billion in assets and a larger presence across Texas. The purchase price was not disclosed.
Cornerstone said the deal will expand its statewide market share, moving it into the top 20 Texas banks with less than $10 billion in assets, while reducing its cost of deposits by about 68 basis points.
The merger is also expected to boost the bank’s mortgage origination and servicing divisions by creating additional lending capacity and generating “significant pricing and revenue synergies without compromising asset quality,” according to the announcement.
Peoples Bank will continue to operate under its existing name as Peoples Bank, a Division of Cornerstone Capital Bank, and will be part of Cornerstone’s new Community Banking Division. All Peoples Bank branches and employees will be retained.
Larry Allen, chairman and CEO of Peoples Bank, will join the boards of both Cornerstone Capital Bancorp and Cornerstone Capital Bank, and he will serve as area chairman of Peoples Bank. Todd McKee will be area vice chairman, Tim Farris will be area president, and Jon Drake and William Booe will serve as senior and executive vice presidents, respectively.
Allen will also chair a new Peoples Bank Regional Advisory Board, which will include Ronnie Bilbo, Brett Cate, Charles Darter, Walt Hagood and Steve Nieman.
“We are pleased to welcome Peoples to Cornerstone Capital Bank,” Cornerstone president and CEO Scott Almy said in a statement. “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.”
Allen said the merger would allow Peoples to “bring new products, tools, and lending capacity to our customers, while keeping the personal approach that defines Peoples.”
The boards of both companies unanimously approved the deal, which is expected to close in the first quarter of 2026, pending regulatory and shareholder approval.
Cornerstone was advised by Piper Sandler & Co. and Otteson Shapiro LLP. Peoples was advised by Hillworth Bank Partners and Fenimore Kay Harrison LLP.
