Cornerstone Capital Bancorp will acquire Peoples Bancorp for an undisclosed sum, the firms announced Friday.
Houston-based Cornerstone, holding company for Cornerstone Capital Bank, and Lubbock, Texas-based Peoples, holding company for Peoples Bank, are expected to merge into a $3.1 billion-asset institution under the Cornerstone banner in the first quarter of 2026.
The deal puts Cornerstone within Texas’ top 20 by deposit market share within the state’s sub-$10 billion-asset banks and is one of several deals focused on the Lone Star State this year.
In two such deals, Houston-based Prosperity Bancshares said it would acquire San Antonio-based Southwest Bancshares in an all-stock transaction valued at $268.9 million earlier this month; and Houston-based Cadence Bank said it would acquire Industry Bancshares, the holding company of six Texas-based banks, in April.
The Cornerstone-Peoples merger “reflects a strong strategic fit, bringing together two organizations committed to relationship banking and long-term community investment,” said Scott Almy, CEO of Cornerstone, in a prepared statement. “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.”
Following the merger, Peoples CEO and Chairman Larry Allen will join Cornerstone’s board and serve as area chairman of Peoples Bank. Peoples’ chief lending officer, Todd McKee, will be area vice chairman of Peoples Bank; Peoples’ president, Tim Farris, will be area president of Peoples Bank; Peoples’ finance chief, Jon Drake, will be senior executive vice president of the combined bank; Peoples’ operations chief, William Booe, will be executive vice president of the combined bank; and all current Peoples branch presidents will continue in their roles.
The deal will add 13 Peoples branches to Cornerstone’s four full-service locations. Cornerstone intends to retain all branches and branch employees.
Dealmaking is at its highest level in four years, according to S&P Global Market Intelligence. Fifty-two U.S.-based bank deals were announced in the third quarter, marking the highest number of deals in a single quarter since the third quarter of 2021, when the industry announced 59 transactions.
The aggregate deal value for the quarter – $16.63 billion – is also the largest since 2021’s fourth quarter, when $25.26 billion worth of deals were announced, S&P Global Market Intelligence said.
Brett Mastalli, banking lead at management consultant West Monroe Partners, told Banking Dive that he’s seeing “a renewed wave of banking M&A, driven by a combination of efficiency pressures, aging leadership, and the growing complexity around technology and regulation.”
“Many banks are reaching an inflection point where modernizing data and digital infrastructure feels overwhelming, making consolidation a more attractive path forward,” Mastalli said. “While most institutions still want to be the acquirer, I expect the market to balance out as we head into 2026, with more banks open to being acquired rather than tackling transformation alone.”
The boards of both companies unanimously approved the deal, which is still subject to regulatory and shareholder approval. At closing, Peoples Bank will operate within Cornerstone's new community banking division as Peoples Bank, a Division of Cornerstone Capital Bank.
