CBSH Arm to Buy Nolan & Associates, Expand Advisory Capabilities

Commerce Bank, the primary subsidiary of Commerce Bancshares, Inc. CBSH, has agreed to acquire Nolan & Associates, a St. Louis-based boutique investment banking (IB) firm. Terms of the transaction were not disclosed, and the deal remains subject to regulatory approval and customary closing conditio…

Commerce Bank, the primary subsidiary of Commerce Bancshares, Inc. CBSH, has agreed to acquire Nolan & Associates, a St. Louis-based boutique investment banking (IB) firm. Terms of the transaction were not disclosed, and the deal remains subject to regulatory approval and customary closing conditions.

Moreover, as part of the deal, CBSH will acquire Middle-Market Transactions, Inc., a FINRA-regulated entity through which Nolan & Associates offers advisory services.

Nolan & Associates provides sell-side, buy-side and capital raise advisory services to middle-market clients. Upon completion, it will operate as a wholly owned subsidiary of Commerce Bank. The firm serves business owners, private equity firms and corporations across several sectors. CBSH intends to retain Nolan & Associates’ employees and office, supporting continuity for clients and employees.

Nolan Deal to Expand CBSH’s Cross-Sell Opportunity

The acquisition broadens CBSH’s ability to serve business owners at key transition points, including growth, acquisitions, capital raises and ownership succession. By adding Nolan & Associates’ IB expertise, Commerce Bancshares aims to provide a more connected client experience that links commercial banking, capital markets, transaction advisory and wealth management services.

The move fits Commerce Bancshares’ recent push to diversify fee income and expand higher-value advisory capabilities. In January, the company completed its acquisition of FineMark Holdings, strengthening its private banking and wealth management presence in Florida while adding offices in Arizona and South Carolina.

Our Take on Commerce Bancshares

The Nolan & Associates acquisition gives CBSH a stronger foothold in middle-market IB business and complements its expanding wealth and commercial banking platforms. While elevated expenses, integration costs and credit-quality risks remain near-term headwinds, the deal supports the company's strategy of building a more diversified, relationship-driven revenue base with deeper advisory capabilities for business owners.

The company has also been repositioning its balance sheet. In May, Commerce Bancshares announced a $99 million gain on the sale of Visa shares and approved the sale of lower-yielding securities, with plans to reinvest most of the proceeds into higher-yielding investment securities. This is expected to support net interest income over time.

Over the past six months, Commerce Bancshares shares have gained 11%, outperforming the industry’s 7.3% growth.

Currently, CBSH carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps by Other Banks

Earlier this month, Barclays BCS strengthened its presence in youth banking by agreeing to acquire GoHenry’s U.K. business from Acorns. The deal supports the company’s strategy of building stronger relationships with families and higher-income households.

Expected to be completed in the fourth quarter of 2026, pending regulatory approval, the acquisition will bring one of the U.K.’s leading financial apps for children and teenagers under the Barclays umbrella.

Likewise, U.S. Bancorp USB acquired BTIG, LLC to strengthen its capital markets platform by adding institutional equity sales and trading, equity capital markets, equity electronic trading, and merger and acquisition advisory capabilities.

The acquisition aligns with U.S. Bancorp’s broader strategy to diversify fee-based revenue streams. BTIG’s expertise in institutional trading, equity capital markets and advisory services is expected to strengthen USB’s ability to serve corporate and institutional clients through a more comprehensive suite of products and solutions.

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