Federal Reserve Approves Cornerstone Capital Bancorp’s Acquisition of Peoples Bancorp in Texas
Houston, TX – January 30, 2026 – The Federal Reserve Board has approved Cornerstone Capital Bancorp, Inc. (“Cornerstone BHC”) to acquire Peoples Bancorp, Inc. (“Peoples BHC”), including its subsidiary Peoples Bank in Lubbock, Texas. The approval allows Cornerstone BHC to merge Peoples Bank with its own subsidiary, Cornerstone Capital Bank, SSB (CCB), in Houston.
The combined organization will control approximately $3.4 billion in consolidated assets and $2.4 billion in deposits, remaining well under 1% of total U.S. deposits, ensuring no significant impact on competition. In Texas, Cornerstone BHC will become the 53rd largest insured depository institution.
The Federal Reserve evaluated several factors, including financial and managerial resources, operational integration plans, and community service impact. Both CCB and Peoples Bank have received “Satisfactory” ratings in their recent Community Reinvestment Act (CRA) evaluations, reflecting strong performance in meeting the credit needs of their communities.
Cornerstone BHC confirmed that no branch closures are planned, and customers of both banks will continue to access the full range of services. The merger is expected to enhance service delivery, expand mortgage lending, and improve access to banking products, particularly benefiting low- and moderate-income (LMI) communities.
The acquisition is structured as a share and cash exchange, and Cornerstone BHC has confirmed it has adequate resources to complete the transaction and integrate the operations effectively. The Federal Reserve also noted that the merger poses no systemic risk to the U.S. banking system.
With this approval, Cornerstone BHC will be positioned to leverage CCB’s mortgage capabilities and offer a broader suite of financial products across Texas, strengthening community banking services for individuals and small businesses.