Commerce Bancshares (NASDAQ:CBSH) announced Monday it will acquire Florida-based FineMark Holdings in an all-stock transaction worth approximately $585 million. The move reflects a broader trend of consolidation among U.S. regional banks as institutions seek to scale operations amid increasing costs tied to technology upgrades and regulatory compliance.
Under the agreement, FineMark shareholders will receive 0.69 shares of Commerce Bancshares for each FineMark share they own. Based on Friday’s closing prices, the offer represents a premium of roughly 54.7%, according to calculations by Reuters.
Founded in 2007, FineMark operates 13 branches across Florida, Arizona, and South Carolina, offering a combination of traditional banking services alongside wealth and trust management. As of March 31, the bank reported total assets of $4 billion, with its trust and investment division overseeing around $7.7 billion in assets under administration.
With the merger, the combined entity will hold more than $36 billion in total assets and oversee approximately $82 billion in wealth assets under administration.
“This combination strengthens our position, enhances our capabilities, and sets the stage for further growth,” said John Kemper, CEO of Commerce Bancshares, headquartered in Kansas City, Missouri.
Commerce was advised by Keefe, Bruyette & Woods, while FineMark received financial counsel from Piper Sandler. The deal is expected to close on January 1.