Custer Federal State Bank will be acquired by Cornerstone Bank as Brad Shinn prepares for retirement after 37 years in banking, including 35 years with Custer Federal State Bank.
Custer Federal State Bank Chairman of the Board and CEO Bradley Shinn clarified that his upcoming retirement prompted the acquisition, emphasizing that no other circumstances led to the transition.
The acquisition will allow Cornerstone Bank to expand their footprint into the Broken Bow and Kearney areas while giving Custer Federal State Bank an opportunity to join another long term, family owned banking organization.
“First and foremost, Cornerstone will retain all of our talented staff members,” Shinn said. “That’s not only good for our staff, but also the customers. Our company has built relationships over the years and built trust and that was a key element of this.”
Custer Federal State Bank has been serving the area 1925, when it first opened in Broken Bow. The bank later expanded into Kearney, opening that location in March 2017.
Shinn said the right organization to carry on the bank’s legacy was a serious process. Cornerstone stood out because of their commitment to community banking, the family owned structure and focus on agriculture and commercial banking.
“Cornerstone’s in over 40 communities, and they’re small communities, small banks, so they know community banking,” Shinn said. “They are ag focused and commercial banking focused. They are a family owned bank, just as Custer Federal State is, and they are all about community banking.”
Another factor expected to make the transition easier is that both banks use the same core customer software.
“Cornerstone Bank runs the same core customer software as we do, and that makes our transition go smoother,” Shinn said. “It would mean that customers will continue to use familiar services that they have under Custer Federal. And it’s anticipated the customer experiences will be enhanced through additional products and services that are offered under Cornerstone Bank.”
The banks are currently comparing account offerings, products, services, software and procedures. Shinn said the goal is for customers to see as few changes as possible to their current accounts and banking services.
“There will be expanded access to other products and services,” Shinn said. “And we’re starting by reviewing accounts and account numbers because it’s very important if we can keep customers account number the same, we will make that a top priority to do so.”
Custer Federal State Bank has 17 employees, all of whom Cornerstone plans to retain. Shinn said keeping the current team together is important because of the relationships employees have built with customers over the years.
“Our team is outstanding. They work well together. So we don’t want to disrupt that,” Shinn said.
According to a press release from Cornerstone Bank, the acquisition includes Custer Federal State Bank’s locations in Broken Bow and Kearney. Cornerstone Bank, owned by First York Ban Corp. of York, reported $2.7 billion in assets as of September 30, 2026. Following the acquisition, Cornerstone will operate 51 banking locations in 42 communities.
The press release also states, “Cornerstone Bank has banking locations in the following communities in Nebraska: Albion, Ashton, Aurora, Bartlett, Beaver Lake, Bradshaw, Central City, Clay Center, Clearwater, Columbus, Creighton, Davenport, Edgar, Franklin, Geneva, Glenvil, Grand Island, Guide Rock, Hampton, Harvard, Henderson, Hildreth, McCool Junction, Malmo, Marquette, Monroe, Murray, North Loup, Orchard, Polk, Rising City, Shelton, St. Edward, Steinauer (coming in December of 2026), Stromsburg, Sutton, Tilden, Waco, Wilcox and York. Cornerstone Bank is owned by First York Ban Corp. of York, Nebraska.”
The purchase is subject to regulatory approval, with closing expected in the first quarter of 2027. Until then, much of the work will involve behind the scenes research and planning, including reviewing differences in accounts, software, processes and procedures.
Shinn said the goal is to partner with an organization that will maintain the same priorities Custer Federal State Bank has held throughout the company’s history, while continuing to serve the communities of Custer and Buffalo counties and surrounding areas.
“I think there’s a lot of similarities with Cornerstone and Custer Federal State Bank,” Shinn said. “The goal is to partner up with another bank that will keep those same priorities in place, and we feel we’ve done that with Cornerstone.”
Shinn thanked customers for their support over the years and encouraged them to continue their banking relationships as the organization moves into the next chapter.
