Cornerstone Capital Announces Strategic Acquisition of Peoples Bank to Enhance Market Presence in Texas

Cornerstone Capital Bank to Acquire Peoples Bank

On October 18, 2025, Cornerstone Capital Bancorp, Inc. announced a definitive agreement to merge with Peoples Bancorp, Inc., bolstering its position in the Texas banking market. This strategic acquisition aims to unite both institutions to enhance their offerings for communities and businesses nationwide.

The merger marks Cornerstone's first acquisition since its transformative merger with Roscoe Bank in 2022. Following this new merger, the combined entity will possess around $3.1 billion in assets, thereby creating a robust financial institution that brings numerous strategic advantages.

Key Benefits of the Acquisition

1. Increased Market Presence: The merger will substantially expand Cornerstone's footprint in the rapidly growing Texas market, elevating its standing among banks with less than $10 billion in assets to the top 20 list.
2. Improved Deposit Market Share: Cornerstone anticipates a substantial improvement in deposit market share across the state, accompanied by a notable reduction in deposit costs.
3. Enhanced Mortgage and Service Capabilities: The merger reduces funding costs, allowing for increased profitability and the potential to expand product offerings, thereby providing more services to diverse customer bases.
4. Synergy in Operations: The merger promises important synergies regarding cost and revenue without compromising asset quality.
5. Customer-Centric Growth: Customers of Peoples Bank will benefit from enhanced services and technology resources now available through Cornerstone's comprehensive portfolio.
6. Strengthened Brand and Culture: Both Cornerstone and Peoples Bank share community-oriented missions, promoting a philosophy of being the best employer and bank for their respective clients.
7. Retention of Local Leadership: Retaining the management teams of both institutions will facilitate a smooth transition and continued quality service at all branches.

Leadership Commitments

As part of the merger, key leadership positions will be assigned to ensure operational efficiency and integrated management. Larry Allen, the current president and CEO of Peoples, will join Cornerstone's boards, taking on the role of Area President for the newly formed Peoples Bank division under Cornerstone. Other significant appointments include Todd McKee as Area Vice President and Tim Farris as Area President of Peoples Bank, while the organization retains the Presidents of all Peoples' departments.

Executive Insight

Scott Almy, President and CEO of Cornerstone Capital, expressed enthusiasm over welcoming Peoples Bank into the Cornerstone family, highlighting their strategic compatibility and mutual commitment to relational banking and long-term community investment. He indicated that this partnership is poised to create lasting value for not just their employees and shareholders, but also for the communities they serve.
Similarly, Larry Allen, President and CEO of Peoples, stated that the merger is a natural extension of their mission to build strong community relationships while leveraging Cornerstone's resources to offer new products and services without losing the personal touch that customers have come to expect.

The Path Ahead

The boards of both companies have unanimously approved the merger, which is contingent upon regulatory approvals and shareholder consent. The completion of this transaction is expected in the first quarter of 2026, with Peoples Bank operating as a division of Cornerstone Capital Bank.

This acquisition allows Cornerstone Capital to reinforce its commitment to enhancing community banking in Texas while ensuring operational synergies, customer satisfaction, and sustained growth. For more information about Cornerstone Capital or Peoples Bank, visit their respective websites.

As we continue to navigate this evolving financial landscape, the merger highlights the importance of adaptability and collaboration within the banking sector, illustrating how strategic partnerships can yield enhanced service capabilities and community outreach.