- Key Insight: The acquisition formalizes a relationship that long predates the deal, with both companies already familiar with the other's customer base.
- Expert Quote: "I think this was an opportune acquisition … for Commerce to add full-service capabilities to a middle-market commercial client base." — Piper Sandler analyst Nathan Race
- Forward Look: The longer-term bet is that Nolan's advisory team can generate incremental revenue as Commerce deepens its push into fee-based revenue.
Commerce Bancshares said Monday that it will acquire Nolan & Associates, a St. Louis-based middle-market boutique investment banking firm, for an undisclosed price.
The acquisition of Nolan will add differentiated investment banking capabilities to Commerce's existing client offerings, according to a press release. Tom Harmon, the Kansas City bank's president of eastern expansion markets and head of commercial tradable products, said in an interview that the deal "cements a longstanding relationship" between the two companies.
Prior to the acquisition, Nolan sold businesses to some of Commerce's former commercial clients, Harmon said. As a result, the integration of the two firms will start from a place of "familiarity, both on the commercial side and with capital for business," he added.
"We've had our sights set on Nolan for quite some time," Harmon said. "We feel really good about this as a strategic fit."
While many of Nolan's clients are in the Midwest, the firm has operated nationwide with a focus on multi-generational family-owned businesses, offering a "lot of crossover in our respective client bases," according to Harmon.
Under the terms of the deal, Commerce will also acquire Middle-Market Transactions, through which Nolan delivers advisory services.
By integrating Nolan's investment banking capabilities, the Kansas City bank aims to offer its commercial and wealth clients a broader set of solutions, Commerce said. For the Nolan team, the deal provides access to expanded client relationships, additional capital markets capabilities and new avenues for transactions across Commerce's wider geographic footprint.
Commerce did not say when it expects the acquisition to close, but said that the transaction is subject to regulatory approval and customary closing conditions. After the deal closes, Nolan, a family-owned firm established in 1976, is expected to operate as a wholly owned subsidiary of Commerce Bank.
Piper Sandler analyst Nathan Race noted Monday that while Commerce already has its hand in public finance investment banking, the acquisition offers it a middle market advisory team.
"I think this was an opportune acquisition for Commerce … to add full service capabilities to a middle market commercial client base, which includes M&A advisory to help a commercial client, whether it's in the healthcare, hospitality, or any of the other industries Commerce has some specialties in," Race told American Banker.
Race said he believes the deal is unlikely to impact Commerce's financial results for "at least the next year or so," calling the acquisition a "pretty small deal in the grand scheme of things." Race expressed his belief that the bank is hoping the acquisition "will be able to drive some incremental advisory revenue in the future."
Investment banking is a relatively small part of Commerce's business. The Kansas City-based bank reported $5.3 million in capital markets fees between Jan. 1 and March 31, or 3.4% of its total non-interest income.As of March 31, 2026, Commerce held $35.7 billion of assets, with commercial offices in 11 states.
In January, Commerce
