Commerce Bancshares in Kansas City, Mo., has agreed to buy FineMark Holdings in Fort Myers, Fla.
The $32.4 billion-asset Commerce said in a press release that it will pay $585 million in stock for the $4 billion-asset parent of FineMark National Bank & Trust. The deal, which is expected to close on Jan. 1, priced FineMark at 153% of its tangible book value.
FineMark, founded in 2007, has 13 branches in Florida, Arizona, and South Carolina. It also has $3.1 billion of deposits and $2.6 billion of loans.
“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,” John Kemper, Commerce’s president and CEO, said in the release. “This acquisition is about more than scale—it’s about shared purpose and the opportunity to achieve more together.”
The deal should be 6.6% accretive to Commerce’s 2026 earnings per share. It should take less than two years for Commerce to earn back an estimated 2.2% dilution to its tangible book value.
Commerce plans to cut about 15% of FineMark’s annual noninterest expenses. It expects to incur $57 million of merger-related charges.
Joseph Catti, FineMark’s chairman and CEO, will become chairman of Commerce Trust and CEO of FineMark, a division of Commerce Bank.
Keefe, Bruyette & Woods and Holland & Knight advised Commerce. Piper Sandler and Alston & Bird advised FineMark.