Dear Associates, Board Members, Clients, and Shareholders,
I want to take a moment to thank each of you for your loyalty, commitment, and all your efforts contributing to the success of FineMark National Bank & Trust.
In early 2006, I had a vision to create a nationally chartered bank and trust company focused on providing the highest levels of service in a genuine and sincere way while making a positive impact in people’s lives. As a result, we established FineMark and opened in a former Blockbuster video store on February 16, 2007. Our premise was that small companies are agile, can maneuver easily through change, can turn on a dime, and decisions can be made quickly compared to most large companies that may be sluggish, bureaucratic, and slow to change course. We also believed a small company could grow into a large company and still execute like a small one.
FineMark opened with $35 million in capital and total assets. Today, with the hard work and dedication from you, FineMark has total assets of $4 billion and capital in the amount of $391 million. We are also responsible for just under $9 billion in assets under management and administration. We have 13 locations, including Fort Myers, Bonita Springs, Naples, and Jupiter in Florida. In addition, we have offices in Charleston, South Carolina, Scottsdale, Arizona, and a growing client base in Dallas, Texas, where we have hired a president and hope to open a full-service office in the near future.
The Bank experienced strong and consistent earnings growth from its inception through 2022. As you may know, the Federal Reserve raised interest rates by 525 basis points beginning in March 2022 and continued raising rates until July 2023. This rapid rise in interest rates resulted in a decrease in earnings in 2023 and 2024. Once the Federal Reserve began lowering rates in September 2024, the Bank’s earnings reaccelerated, and in 2025, FineMark realized a significant earnings turnaround that is expected to continue as we enter 2026.
Because of each of you, the company has been extremely successful since its inception. We thrived during the economic crisis from 2007 through 2012, experienced at least three major hurricanes, saw our way through a pandemic, and navigated the most recent financial liquidity crisis. This success was a direct result of our people’s resiliency and their commitment to always do the right thing while remaining steadfast to the FineMark culture. I thank each of you for that.
At the end of 2024, we decided to assess options for the company and its future. As a result of our consistent and significant growth rates each year, we were always in need of more capital. Following the financial liquidity issues of 2023, we also believed that greater scale was important for the safety of our clients and shareholders.
As we reviewed our options, we decided we would pursue a merger only if we could find the appropriate partner aligned with FineMark’s culture and business model, allowing us to remain focused on serving our client families at the highest level while also supporting continued growth. We went through a lengthy process and ultimately believe our partnership with Commerce Bank is in the best interest of all our constituents. On June 16 of this year, I announced our entering into a definitive merger agreement, and we are scheduled to close on Jan. 1, 2026, in less than two weeks.
We will now be turning the page to a new chapter in a very large book in the life of FineMark and our personal lives. As we have deepened our relationships with our Commerce colleagues over the last six months, I am confident that we collectively made the right decision. We certainly have a cultural and people alignment. FineMark and Commerce share a common saying that one plus one equals more than two. With our companies, I believe this to be true.
Throughout the last nearly 19 years, we have made a significant difference in thousands of lives in ways that would never have been possible without each of you working toward a common goal to impact lives in a positive way. We have not only contributed multiple millions of dollars in the communities we serve but equally, countless volunteer hours which have truly made a difference. I am honored to work with such a committed group of individuals with a willingness and desire to serve. I am confident these principles will transcend time.
To our board of directors, thank you for your wisdom and commitment to FineMark. I also want to thank you for your willingness to challenge us productively. I have personally grown from that, and I know our leadership team has as well.
To our client families, thank you for your loyalty to FineMark and for entrusting your resources to us. We are privileged that each of you is part of the FineMark family. You need to know, we do not take you for granted and appreciate you each day.
To our shareholders, many of you have been investors since the end of 2006, prior to the bank opening. Thank you for your commitment and your patience. Without you, FineMark would not have been able to exist. I sincerely hope you are satisfied not only with your investment but with the entire FineMark experience.
And last but certainly not least, thank you to our associates. As I also previously stated, it has been my honor and privilege to work alongside each of you. Your dedication, hard work (there is no substitute for work ethic), and hearts of servants exemplify the essence of FineMark. I look forward to working with each of you for many years as we begin a new chapter in our very long book.
On behalf of our entire company, we wish everyone a happy holiday season and a safe New Year.
With deep gratitude,
Joseph R. Catti, CEO
