Mercantile Bancorp., St. Louis, announced Friday that it plans to buy local discount broker Bruno Stolze & Co. Terms were not disclosed. The deal is expected to close in the third quarter.
The boutique would continue to operate under the Bruno Stolze name, the $32 billion-asset banking company said in a statement. J. Michael Bruno, co-founder and chairman of Bruno Stolze, is to become president of the discount brokerage division of Mercantile Investment Services, reporting to Gail Partain, the investment services company's president.
Mercantile gleans most of its $23 million in annual broker-dealer revenues from full-service brokerage, said the spokesman. But "the company sees great growth potential in discount brokerage."
The bank has 130 full-time brokers as well as 100 part-time representatives working on the full-service side, compared with just two in the discount area, he said. Mercantile stands to gain 12 brokers when the deal for Bruno Stolze closes.
-Compiled by Niamh Ring