June 16 (Reuters) - U.S. regional bank Commerce

Bancshares ( CBSH ) has agreed to acquire rival FineMark

Holdings ( FNBT ) in an all-stock deal valued at $585 million,

the companies said on Monday.

Consolidation among U.S. banks is expected to heighten as

rising technology and compliance costs push lenders to scale via

mergers and acquisitions. A lighter regulatory touch under the

Trump administration is also fueling prospects of bigger deals.

Shareholders will receive 0.69 shares of Commerce for each

share of FineMark ( FNBT ) they hold. As of the market close on Friday,

the terms represent a 54.7% premium for FineMark ( FNBT ) shareholders,

according to Reuters calculations.

Founded in 2007, Florida-based FineMark ( FNBT ) offers wide-ranging

banking and non-banking services to clients through 13 offices

in Florida, Arizona and South Carolina. The bank had $4 billion

in assets, as of March 31.

The company's trust and investment business holds assets

under administration of around $7.7 billion.

"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,," said John Kemper, CEO of Kansas City, Missouri-based

Commerce Bancshares ( CBSH ).

Keefe, Bruyette & Woods acted as financial adviser to

Commerce Bancshares ( CBSH ), while Piper Sandler advised FineMark ( FNBT ).

The transaction is expected to close on January 1.