Dive Brief:

• Kansas City, Missouri-based Commerce Bancshares has agreed to buy Fort Myers, Florida-based FineMark Holdings in an all-stock transaction valued at roughly $585 million, the companies announced Monday.
• Following the transaction, Commerce will add FineMark’s $7.7 billion in assets under administration along with $4 billion in banking assets, deposits and loans worth $3.1 billion and $2.6 billion, respectively, according to the press release.
• The transaction – expected to close by Jan. 1, 2026 – is awaiting regulatory and FineMark shareholders’ approvals.

Dive Insight:

Though Commerce has been a serial acquirer since 1991, this is the bank’s first proposed acquisition in more than a decade. The last bank Commerce bought was Summit Bancshares in May 2013.

The combined entity will have more than $36 billion in assets and more than $82 billion in wealth assets under management, expanding Commerce’s reach while bolstering its growth, according to John Kemper, Commerce’s CEO. Commerce now counts more than $76 billion in wealth assets. 

“FineMark is a natural culture fit, with a history of strong asset quality, a shared client-centric approach to wealth management and banking, and a commitment to building strong communities,” Kemper said in a statement Monday. “This acquisition is about more than scale — it's about shared purpose and the opportunity to achieve more together.” 

Under the terms of the deal, FineMark shareholders will get a fixed exchange ratio of 0.690 shares of Commerce common stock for each FineMark share they own. The per-share value of $41.87 for FineMark shareholders was based on Commerce’s closing price Friday.

The acquisition is expected to be roughly 6% accretive to 2026 earnings, with a tangible book value per share earnback period of 1.6 years, Commerce said in an investor presentation.

Commerce is “well-positioned for continued growth,” the bank added, with the common equity tier 1 ratio of roughly 17% post-acquisition.

Fee income comprises roughly 43% of FineMark’s diversified revenue stream. The bank’s sports management unit offers wealth management expertise to nearly 300 professional athletes, with roughly $600 million in assets under administration.

Analysts at Keefe Bruyette & Woods have dubbed the deal a “prime example of ‘quality buying quality’” with Commerce acquiring a lender with strong capital levels and low credit costs and “meaningful” expansion in Florida, Arizona and South Carolina growth markets.

The deal would add 13 branches to Commerce’s footprint.

After the completion of the deal, FineMark CEO Joseph R. Catti will be named chairman of Commerce Trust and CEO of FineMark, a division of Commerce Bank, according to the investor presentation. FineMark is expected to maintain its brand name as a division of Commerce Bank, which will be merged into a single charter.

“We believe it reflects well on FineMark that a bank of Commerce's caliber would see the value in what we have created,” Catti said in a statement. “We are excited to announce a partnership that will benefit both institutions, our clients, and shareholders, while also positioning us to work together towards the next chapter of our combined organization's legacy.”