Houston-based Cornerstone Capital Bancorp is expanding in Texas by acquiring Lubbock-based Peoples Bancorp..Cornerstone Capital is the holding company for $2.3 billion Cornerstone Capital Bank. Peoples Bancorp is the parent company of $1.13 billion Peoples Bank. The merger is expected to close in the first quarter of next year. The combined institution will have approximately $3.1 billion in assets, placing Cornerstone among the top 20 Texas banks with under $10 billion in assets. Peoples Bank will continue operating under its existing name as “Peoples Bank, a Division of Cornerstone Capital Bank.”The transaction is Cornerstone’s first bank buy since its 2022 merger with central Texas-based Roscoe Bank. According to Cornerstone Bank, the combined company is intended to lower funding costs, strengthen its deposit marketing share and expand mortgage and servicing operations. All Peoples Bank branches and employees will be kept. “This combination reflects a strong strategic fit, bringing together two organizations committed to relationship banking and long-term community investment,” said Cornerstone Bank President and CEO Scott Almy. “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 Chair and CEO Larry Allen will join the boards of both the holding company and bank and chair a new Peoples Bank Regional Advisory Board. “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,” he said. Cornerstone was advised by Minneapolis-based investment banking company Piper Sandler & Co. and Denver-based law firm Otteson Shapiro LLP, while Austin-based investment banking firm Hillworth Bank Partners and Austin-based law firm Fenimore Kay Harrison advised Peoples.
