(Reuters) -U.S. regional bank Commerce Bancshares has agreed to acquire rival FineMark Holdings 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 they hold. As of the market close on Friday, the terms represent a 54.7% premium for FineMark shareholders, according to Reuters calculations.

Founded in 2007, Florida-based FineMark 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.

Keefe, Bruyette & Woods acted as financial adviser to Commerce Bancshares, while Piper Sandler advised FineMark.

The transaction is expected to close on January 1.