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Commerce Bancshares Secures Green Light for FineMark Acquisition

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Key Takeaways

  • Commerce Bancshares gained approvals for its planned FineMark acquisition, closing Jan. 1, 2026.
  • The merger combines $36B in assets and $86B in wealth AUA, enhancing client services.
  • Transaction expected to be 6% accretive to 2026 GAAP earnings with 15% cost savings.

Commerce Bancshares (CBSH - Free Report) has received the approvals from the Federal Reserve Bank of Kansas City and the Missouri Division of Finance for its pending FineMark Holdings, Inc. buyout. The transaction, still subject to FineMark shareholders' consent and other customary closing conditions, will close on Jan. 1, 2026.

CBSH announced the deal to acquire FineMark in June. Founded in 2007, FineMark is a nationally chartered commercial bank serving clients through 13 banking offices in Florida, Arizona and South Carolina. 

As of June 30, 2025, FineMark had assets worth $3.9 billion, deposits worth $3.1 billion and loans of $2.7 billion. Its Trust and Investment business delivers personalized services to 2,000 clients with $8.3 billion in assets under administration (AUA). The deal combines $36 billion in assets and $86 billion in wealth AUA, creating a stronger growth platform and enhancing wealth management and private banking with more seamless, innovative and personalized client experiences.

At the time of announcing the deal, it was noted that shareholders of FineMark will receive 0.690 shares of Commerce Bancshares for each of their shares. 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 transaction 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 the pro forma tangible book value estimate at closing.

CBSH’s Price Performance & Zacks Rank

Shares of Commerce Bancshares have lost 3.6% in the past six months against the industry’s growth of 2.4%.
 

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CBSH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Acquisitions Announced By Other Banks in Recent Days

To expand its presence throughout the high-growth markets in the Carolinas, TowneBank (TOWN - Free Report) entered an agreement to acquire Dogwood State Bank for $476.2 million. The closing of the transaction, expected in early 2026, is subject to customary conditions, including regulatory approval, as well as the approval of Dogwood’s shareholders.

Per the deal, shareholders of Dogwood will receive a fixed exchange ratio of 0.700 shares of TowneBank common stock for each of their outstanding shares. TowneBank expects the acquisition to be 8% accretive to its earnings per share in 2027.

First Financial Bancorp (FFBC - Free Report) agreed to acquire BankFinancial Corporation (BFIN - Free Report) , a Chicago-based financial institution, in an all-stock transaction valued at approximately $142 million. The move aligns with FFBC’s strategic focus on strengthening its footprint in the Chicagoland market and enhancing its service offerings.

Under the terms of the agreement, BankFinancial shareholders will receive 0.48 shares of First Financial for each share they hold. The acquisition will expand First Financial’s presence in the Chicagoland area by adding BankFinancial’s 18 financial centers to its network. 

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