Peoples Bank (of Texas), a subsidiary of Peoples Bancorp Inc., announced that it has entered into an agreement to merge with Cornerstone Capital Bank, a subsidiary of Cornerstone Bancorp Inc. Upon closing, expected in the first quarter of 2026, Peoples Bank will operate as “Peoples Bank, a Division of Cornerstone Capital Bank.”

“Peoples Bank has proudly served our communities as a trusted local bank for many years,” said Larry Allen, CEO and Chairman of Peoples Bank. “We’ve built our reputation on hiring great people, empowering them to make local decisions, and staying deeply engaged in the markets we serve. By joining Cornerstone, a highly capitalized bank with complementary businesses, we gain the resources to better serve our customers and communities, without losing the personal approach that defines us.”

Upon the closing of the transaction, Allen will serve as Area Chairman and Board Member of Cornerstone Capital Bank and Cornerstone Capital Bancorp. Todd McKee will serve as Area Vice Chairman and Tim Farris will serve as Area President. Jon Drake will serve as Senior Executive Vice President and William Booe will continue to serve as Executive Vice President. The rest of the Peoples Bank team will remain in place, and our customers will continue to work with the same familiar faces at the same locations. Cornerstone will keep the Peoples Bank name and brand in the communities that Peoples Bank currently serves.

“Peoples Bank’s strong community relationships and local leadership are exactly what we look for in a partner,” said Scott Almy, President and CEO of Cornerstone. “Cornerstone has a long history of working with leaders who know their markets best, and we are committed to keeping that expertise at the center of decision-making. Together, we will build on Peoples Bank’s legacy while bringing additional financial strength and resources to serve these communities for generations to come.”