Two Bank Stocks to Avoid: National Bank Holdings and Independent Bank

National Bank Holdings (NBHC) and Independent Bank (INDB) are two bank stocks with concerns over declining profitability and stagnant sales. NBHC has a flat sales trend over the last two years, a 24-basis-point decline in net interest margin, and expected decreased productivity. INDB has a 3.3% annual decline in sales, a 29.7-basis-point decline in net interest margin, and a 13.4% annual drop in earnings per share.

FineMark National Bank & Trust, a Florida-based commercial bank and trust company, has been acquired by Commerce Bancshares Inc. in an all-stock deal valued at approximately $585 million. The acquisition, announced on June 16, is expected to close on January 1, 2026, pending regulatory and shareholder approval.

FineMark, with 13 offices across Florida, Arizona, and South Carolina, will operate as a division of Commerce, retaining its name and CEO. The merger reflects a growing trend of acquisitions in the U.S. banking sector. Commerce Bancshares, based in Kansas City, operates through its subsidiary, Commerce Bank, which offers a wide range of financial services and has a significant presence in the Midwest.

The acquisition terms offer FineMark shareholders the equivalent of 0.69 shares of Commerce's common stock for every share they own, equating to $41.87 per share. This represents a 54.7% premium for FineMark shareholders, according to Reuters. The deal has been approved by the boards of both companies, but FineMark's shareholders must still vote to approve it.

FineMark's CEO, Joseph Catti, expressed excitement about the partnership, stating that Commerce Bancshares shares FineMark's client-first philosophy and values. He also noted that there are no plans to downsize FineMark's operations or footprint but rather to grow them. Commerce Bancshares' President and CEO, John Kemper, described the merger as a strategic milestone that reflects years of relationship building and shared values.

The planned acquisition comes as U.S. banks have shown renewed interest in mergers and acquisitions. According to a report by Bain & Co., 34% of the top 50 U.S. banks were open to or actively pursuing acquisitions by the fall of 2024, compared to only 12% in 2023. This increased interest is attributed to several factors, including perceived regulatory easing under President Donald Trump.

FineMark's acquisition by Commerce Bancshares Inc. is significant for the banking sector, as it aligns with the broader trend of consolidation and strategic partnerships within the industry. The deal underscores the importance of shared values and complementary business models in driving growth and value for both institutions and their shareholders.

References:
[1] https://www.news-press.com/story/money/companies/2025/06/16/rival-to-acquire-fort-myers-based-finemark-national-for-585-million/84228863007/