Cornerstone Capital Bancorp, Inc. entered a definitive agreement to acquire Peoples Bancorp, Inc. to establish the bank holding company of Cornerstone Capital Bank as one of the largest institutions in Texas among those with less than $10 million in total assets.
Upon completion of the acquisition, the combined institution would have approximately $3.1 billion in assets. The transaction would mark Cornerstone’s first bank acquisition since its transformative merger with Roscoe Bank in 2022, according to a company press release.
Cornerstone’s objective with the transaction is to create a stronger franchise with meaningful strategic and financial benefits, including: an expanded presence in the fast-growing Texas market; improved statewide deposit market share; a 68-basis-point reduction in deposit costs; decreased funding costs for Cornerstone’s mortgage and servicing divisions; additional expansion capacity for its lending portfolio; and the ability to deliver more value-added services to clients.
“This combination reflects a strong strategic fit, bringing together two organizations committed to relationship banking and long-term community investment,” Cornerstone President and CEO Scott Almy said in the release. “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.”
Peoples Bank’s customers will benefit from “significant pricing and revenue synergies without compromising asset quality,” according to the release, along with access to a broader balance sheet, more technology and new resources.
“For many years, Peoples has focused on building strong relationships and supporting the communities we serve,” Peoples Chairman and CEO Larry Allen said in the release. “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.”
The acquisition plans would retain all Peoples branches and employees, as well as support for Cornerstone’s local decision-making model, backed by the resources of a larger, combined organization. Upon completion, Peoples Bank would operate within Cornerstone’s new Community Banking Division as “Peoples Bank, a Division of Cornerstone Capital Bank.”
The boards of both companies have unanimously approved the transaction, which remains subject to regulatory and shareholder approvals, as well as customary closing conditions. Closing is expected in the first quarter of 2026.