Cornerstone Capital Bank To Acquire Peoples Bank

Cornerstone Capital Bancorp, Inc. (“Cornerstone” or the “Company”), the holding company for Cornerstone Capital Bank, and Peoples Bancorp, Inc. (“Peoples”), the holding company for Peoples Bank, a community bank headquartered in Lubbock, Texas, announced the signing of a definitive agreement under which Cornerstone will acquire by merger, Peoples.

This transaction marks Cornerstone’s first bank acquisition since its transformative merger with Roscoe Bank in 2022. The combined institution will have approximately $3.1 billion in assets, creating a stronger franchise with meaningful strategic and financial benefits:

  *   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

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. Upon completion, Peoples Bank will operate within Cornerstone’s new Community Banking Division as “Peoples Bank, a Division of Cornerstone Capital Bank.”

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 Executive Vice President of the combined bank

  *   William Booe as Executive Vice President of the combined bank

  *   All Branch Presidents of Peoples will continue in their current roles

Mr. Allen will also chair Cornerstone’s new Peoples Bank Regional Advisory Board, which will include Ronnie Bilbo, Brett Cate, Charles Darter, CPA, Walt Hagood, and Steve Nieman.

“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.”

“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.”