Cornerstone Bank has reached an agreement to purchase Custer Federal State Bank, including its locations in Broken Bow and Kearney.
The acquisition was announced by Bradley J. Shinn, chairman of Custer Federal State Bank, and Zac Holoch, president and CEO of Cornerstone Bank. The transaction is subject to regulatory approval, with closing expected in the first quarter of 2027.
Custer Federal State Bank reported $120 million in assets, $95 million in deposits and $85 million in loans as of June 30, 2026.
The purchase will expand Cornerstone Bank’s presence into the Broken Bow and Kearney markets. Holoch said the bank is looking forward to becoming part of the communities and welcoming Custer Federal State Bank’s customers and employees.
“This purchase marks an exciting milestone in our growth strategy, allowing us to expand our footprint into key high-growth markets. We look forward to welcoming the customers and talented team of Custer Federal State Bank to our financial family,” said Holoch.
Shinn thanked Custer Federal State Bank’s customers for their support over the years, saying the bank has focused on personal relationships and family ownership.
“I want to thank our customers for their patronage and support of the bank over the years,” Shinn said. “We have prided ourselves on knowing our customers on a personal level and being a family-owned bank. We are fortunate to have the opportunity to merge into a long-term, family-owned organization in Cornerstone Bank. Knowing Cornerstone is a family-owned bank gives us confidence that our customers will continue to receive the same personal service from the familiar faces who greet them at the banks in Broken Bow and Kearney every day. Cornerstone Bank and Custer Federal State Bank, a good fit for fulfilling the future banking needs of Broken Bow, Kearney and surrounding areas.”
Cornerstone Bank reported $2.7 billion in assets as of September 30, 2026. Following the acquisition, the bank will have 51 banking locations in 42 communities, along with 19 insurance locations.
Cornerstone Bank operates throughout Nebraska, with locations in communities including York, Grand Island, Columbus, Central City, North Loup and Tilden. The bank is owned by First York Ban Corp. of York, Nebraska.
The acquisition is expected to be completed in the first quarter of 2027, pending regulatory approval.
