Cornerstone Home Lending has acquired and merged with Texas-based Roscoe State Bank. Together the companies have formed Cornerstone Capital Bank. The new entity will hold more than $380 million in regulatory capital and greater than $1.5 billion in assets.
Cornerstone Capital will have three business segments: mortgage lending and servicing, commercial and retail banking, and institutional banking.
Residential mortgage operations will continue to operate under the “Cornerstone Home Lending” brand. Certain counties in Texas will continue to use Roscoe State Bank.
The company said with the acquisition, it expects to increase engagement and product expansion to more than 500,000 U.S. families and mortgage referral sources served by Cornerstone since its inception.
It also plans to offer new products, services, and resources through advanced technologies, including mobile banking, video banking, online banking, and fee-free checking.
From a financial perspective, the merger will help to diversify and increase earnings, reduce average cost of funds, and generate additional and recurring net interest income, according to the company’s press release.