Commerce Bancshares Agrees to Buy Finemark for $585 Million

Commerce Bancshares, Inc. CBSH entered an agreement to acquire FineMark Holdings in an all-stock transaction valued at $585 million. The closing of the deal, expected on January 1, 2026, is subject to regulatory approval, approval of FineMark shareholders and other customary closing conditions.Founded in 2007, FineMark is a nationally chartered commercial bank serving clients through 13 banking offices in Florida, Arizona and South Carolina.As of March 31, 2025, FineMark had assets worth $4 billion, deposits worth $3.1 billion and loans of $2.6 billion. Its Trust and Investment business delivers personalized services to 2,000 clients with $7.7 billion in assets under administration.Terms of the Deal & its Financial Impact on CBSHPer the deal, shareholders of FineMark will receive 0.690 shares of Commerce Bancshares common stock for each of their shares. Based on the closing price of CBSH common stock on June 13, 2025, the deal value per share is $41.87.The transaction is expected to be 6% accretive to CBSH’s 2026 GAAP earnings, with fully phased cost savings. Cost savings of 15% of FineMark’s non-interest expenses are expected.Inclusive of all one-time charges and purchase accounting marks, the deal is expected to result in a tangible book value per share dilution of 2.2% with an earn-back period of 1.6 years.The acquisition will have a limited capital impact at closing, with CET1 of 17%.The merger will result in one-time, pre-tax expenses of $57 million, which is fully realized in pro forma tangible book value estimate at closing.CBSH & FineMark’s Management CommentsPresident and CEO of Commerce Bancshares, John Kemper, stated, “We are excited to welcome FineMark, marking a strategic milestone that is the culmination of years of relationship building, mutual trust, and shared values. 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 added, “Together, with over $36 billion in assets and over $82 billion in wealth assets under administration, we are poised to accelerate growth, expand our reach, and deliver even greater value to clients, shareholders, and the communities we serve for many years to come.”Joseph R. Catti, the chairman and CEO of FineMark, informed, “When we started FineMark in February 2007, the mission was to build extraordinary relationships by going above and beyond. Central to this mission is our culture. We work every day to build and protect the primary attributes which include integrity, hard work, caring and service to others — both in the bank and in the communities we serve. After several years of getting to know the team at Commerce, we are delighted to have identified a partner that shares these same values and will enable us to continue to grow and further our mission.”CBSH’s Price Performance & Zacks RankOver the past year, shares of Commerce Bancshares have gained 13.3%, underperforming the industry’s 23.5% growth. Image Source: Zacks Investment Research Currently, CBSH carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Inorganic Growth Efforts by Other Finance FirmsLast month, The PNC Financial Services Group, Inc.’s PNC subsidiary, PNC Bank, entered a definitive agreement to acquire Aqueduct Capital Group. The acquisition is expected to close in mid-summer, subject to customary closing conditions. The terms of the deal were kept under wraps.The planned acquisition will enhance the primary fund placement capabilities of PNC Financial’s subsidiary Harris Williams, which is a global investment bank specializing in mergers and acquisitions and private capital advisory services, serving clients globally.Likewise, in March 2025, BlackRock Inc. BLK completed the acquisition of Preqin, a premier independent provider of private markets data, solidifying its private markets capabilities to cater to the rising demand among clients.The deal, announced in June 2024 for almost $3.2 billion (£2.55 billion) in cash, reached a milestone in BLK’s strategy to enhance its private markets capabilities by integrating investments, technology and data across the entire portfolio.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report BlackRock (BLK): Free Stock Analysis Report Commerce Bancshares, Inc. (CBSH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks