Cornerstone expands Texas footprint, merging with Peoples Bank to boost mortgage and banking services
Cornerstone Capital Bank has signed a definitive agreement to acquire Peoples Bank, uniting two Texas-based institutions in a deal that will create a $3.1 billion-asset franchise and strengthen both banks’ reach across the state.
The transaction, approved unanimously by both boards, is expected to close in the first quarter of 2026, pending regulatory and shareholder approvals.
The merger marks Cornerstone’s first acquisition since its 2022 combination with Roscoe Bank, a move that established it as the highest-capitalized new bank in Texas history.
“This combination reflects a strong strategic fit, bringing together two organizations committed to relationship banking and long-term community investment," said Scott Almy, president and CEO of Cornerstone.
"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, headquartered in Lubbock, operates 13 locations across West Texas and the Dallas–Fort Worth area.
“This merger is a natural extension of that mission,” said Larry Allen, chairman and CEO of Peoples.
“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.”
Expanded Texas presence and mortgage growth
The combined institution will rank among the top 20 Texas banks with less than $10 billion in assets, and Cornerstone expects to improve its deposit market share while reducing funding costs by approximately 68 basis points.
The deal is also set to bolster Cornerstone’s mortgage and servicing divisions, with management citing enhanced capacity for portfolio lending and value-added services for clients.
All Peoples Bank branches and employees will be retained, and the Peoples brand will continue as a division of Cornerstone.
Leadership appointments include Allen as area chairman, Todd McKee as area vice chairman, and Tim Farris as area president.
Industry context and broader trends
The Texas banking sector has seen a wave of consolidation in recent years, driven by the need for scale, technology investment, and competitive funding.
Community banks have increasingly sought mergers to expand product offerings and withstand margin pressures. Cornerstone’s acquisition aligns with this trend, aiming to leverage technology and broaden its mortgage platform, a sector where it already serves nearly 700,000 client accounts nationwide.
Peoples Bank will maintain its local decision-making model, now backed by the resources of a larger organization. The companies emphasized that customers should expect no changes to their accounts or service during the transition.
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