CBSH Completes FineMark Acquisition, Expands Wealth Footprint

Core Insights - Commerce Bancshares, Inc. (CBSH) has successfully completed the all-stock acquisition of FineMark Holdings, initially announced in June 2025, with full operational integration expected in the second half of 2026 [1][8] Company Overview - The acquisition allows CBSH to significantly enhance its private banking and wealth management services, strengthening its presence in Florida and entering new high-growth markets such as Arizona and South Carolina [2][8] - On a pro-forma basis as of September 30, 2025, CBSH has $36 billion in assets and $90 billion in assets under administration, with FineMark now operating as FineMark Bank & Trust, a division of Commerce Bank [3][8] Transaction Details - The exchange ratio for the merger was adjusted to 0.7245 shares of CBSH stock for each FineMark share, revised from the original 0.690 ratio due to a dividend announced in October 2025 [4] - The transaction is expected to be 6% accretive to CBSH's 2026 GAAP earnings, with anticipated cost savings of 15% on FineMark's non-interest expenses [5] - One-time pre-tax expenses related to the merger are estimated at $57 million, fully accounted for in the pro-forma tangible book value at closing [6] Market Performance - Over the past six months, CBSH shares have declined by 18.2%, contrasting with a 0.6% decline in the industry [7]