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CBSH Completes FineMark Acquisition, Expands Wealth Footprint

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Key Takeaways

  • Commerce Bancshares closes all-stock FineMark acquisition, with system conversion planned for 2H26.
  • CBSH expands private banking and wealth, extending Florida and entering Arizona and South Carolina.
  • On a pro-forma basis, CBSH has $36B in assets and $90B in assets under administration.

Commerce Bancshares, Inc. (CBSH - Free Report) has completed the all-stock deal to acquire FineMark Holdings, which was announced in June 2025. The operational system conversion required for full integration is expected to take place in the second half of 2026.

With the transaction now closed, CBSH is positioned to meaningfully expand its private banking and wealth management franchise. The acquisition strengthens Commerce Bancshares’ existing footprint in Florida, while extending its presence into new high-growth markets, including Arizona and South Carolina.

On a pro-forma basis (based on Sept. 30, 2025, data), CBSH has $36 billion in assets and $90 billion in assets under administration. FineMark will now operate as FineMark Bank & Trust, a division of Commerce Bank, and will continue to serve clients from its current locations while preserving existing advisor-client relationships.

John Kemper, the president and CEO of Commerce Bancshares, stated, “We are delighted to announce the completion of the FineMark transaction, officially welcoming FineMark into our organization. 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.”

Details of the CBSH-FineMark Transaction

On Dec. 3, 2025, Commerce Bancshares and FineMark announced an adjustment to the exchange ratio for their merger deal, under which FineMark shareholders would receive 0.7245 shares of CBSH stock for each FineMark share. This was revised from the originally agreed-upon 0.690 exchange ratio, which reflected the dividend announced in October 2025.

At the time of the deal announcement, it was expected that the transaction would be 6% accretive to CBSH’s 2026 GAAP earnings, with fully phased cost savings. Cost savings of 15% of FineMark’s non-interest expenses were 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 merger was also expected to result in one-time, pre-tax expenses of $57 million, which were fully realized in the pro-forma tangible book value estimate at closing.

CBSH’s Price Performance & Zacks Rank

Over the past six months, shares of Commerce Bancshares have lost 18.2% compared with the industry’s 0.6% decline.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Currently, CBSH carries a Zacks Rank #4 (Sell).

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

Inorganic Growth Efforts by Other Finance Firms

In mid-December 2025, PNC Financial Services Group (PNC - Free Report) secured regulatory approvals needed to complete its previously announced (September 2025) $4.1-billion cash-and-stock acquisition of FirstBank Holding Company.

The transaction is expected to close on or about Jan. 5, 2026, subject to the satisfaction of customary closing conditions. The deal aligns with PNC’s long-term strategy of investing in high-growth regions and leveraging its national platform to drive organic growth. Over the past decade, PNC has focused on expanding through a combination of technology investment, disciplined capital deployment and selective acquisitions to strengthen its presence in attractive markets.

Likewise, Huntington Bancshares Incorporated (HBAN - Free Report) received approval from the Office of the Comptroller of the Currency to complete its previously announced (October 2025) merger of Cadence Bank. The deal is expected to close on Feb. 1, 2026, subject to shareholder approvals and the satisfaction or waiver of remaining customary closing conditions outlined in the merger agreement.

The acquisition is expected to be 10% accretive to Huntington’s earnings per share. Moreover, it is projected to be modestly dilutive to regulatory capital at closing and 7% dilutive to tangible book value per share, with the dilution expected to be earned back within three years, inclusive of merger-related expenses.

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