Firstar Corporation

Firstar Corporation
	File:Firstar Corporation Logo.gif
Trade name	Firstar Bank
Formerly	Template:Ublist
Company type	public
Traded as	Template:NYSE was (1988–2001)
Industry	Banking
Founded	1853; 173 years ago in Milwaukee, Wisconsin as Farmer's and Millers Bank
Defunct	Template:End date and age
Fate	Renamed to U.S. Bancorp following acquisition of U.S. Bancorp
Successor	U.S. Bancorp
Headquarters	Milwaukee, Wisconsin
Area served	Wisconsin, Illinois, Minnesota, Arizona, Iowa, Ohio, Indiana, Kentucky, Tennessee, Missouri, Illinois, Kansas, Arkansas
Key people	Template:Ublist
Website	archived official website

Firstar Corporation operated as a regional bank holding company headquartered in Milwaukee from 1853 until 2001. After acquiring U.S. Bancorp in 2001, it adopted the U.S. Bancorp name and shifted its headquarters to Minneapolis.

History

Originating in 1853 under the name Farmer's and Millers Bank, the institution grew through mergers and organic expansion, becoming First Wisconsin National Bank by 1919.

First Wisconsin Corporation

In 1929, the company restructured into a holding entity called Wisconsin Bankshares Corporation to facilitate bank acquisitions. It was renamed First Wisconsin Bankshares Corporation in 1960, then First Wisconsin Corporation in 1974, and ultimately Firstar Corporation in 1988. Although some subsidiaries maintained the First Wisconsin designation until 1992, all operations consolidated under the Firstar brand to signify its expansion across multiple states.

The company established its headquarters in Milwaukee with the construction of a 42-story tower—the tallest structure in Wisconsin—known as the First Wisconsin Center, which opened in 1973.

Throughout the 1970s and 1980s, First Wisconsin actively pursued international lending opportunities, notably financing South American firms acquiring U.S. goods. This strategy exposed the bank to losses during the Latin American debt crisis.

In January 1987, Roger Fitzsimonds succeeded Gary B. Rafn as president and COO of First Wisconsin Corp., later becoming chairman and CEO of Firstar Corp. in February 1991.

Growth within Wisconsin

In February 1989, Firstar declared its intention to acquire Elkhorn-based Elkhorn Bankshares Corporation for an undisclosed sum.

By September 1991, Firstar planned to purchase Federated Bank of Wauwatosa for $33 million in a combination of cash and stock. Federated held $452 million in assets with 15 branches and was merged into Firstar’s primary bank during 1992.

In February 1994, Firstar agreed to buy Franksville’s First Southeast Banking Corporation for $55.4 million in stock.

Expansion into Illinois

First Wisconsin’s initial move beyond Wisconsin occurred in September 1986 with the acquisition of Du Page Bancshares Inc., located in Glen Ellyn, for $18.2 million in stock.

The following month, it acquired Naper Financial Corporation based in Naperville, which owned two subsidiary banks, for $43 million in cash.

In March 1987, North Shore Bancorp Inc., headquartered in Northbrook, was purchased for $6.16 million.

August 1992 saw Firstar announce its acquisition of Deerfield-based DSB Corporation—which owned Deerfield State Bank with $112 million in assets—with the transaction completing in February 1993.

In August 1994, Firstar agreed to acquire Chicago-based First Colonial Bankshares Corporation for $314 million in stock. At that time, First Colonial operated seventeen community banks across thirty locations with assets totaling $1.8 billion. The acquisition finalized in February 1995, elevating Firstar Bank Illinois to the position of seventh-largest commercial bank in northern Illinois and increasing total assets held by Firstar to $17 billion.

Also during August 1994, Firstar announced it would acquire Moline-based First Moline Financial Corporation along with its $80 million subsidiary, First Federal Savings Bank, for $9.8 million in stock; this deal closed in April 1995 and resulted in conversion to a nationally chartered commercial bank under the name Firstar Bank Quad Cities.

Growth in Minnesota

First Wisconsin made its initial entry into the Minnesota market in March 1987 by acquiring Shelard Bancshares, headquartered in St. Louis Park, for $25 million in cash. At the end of 1986, Shelard Bancshares managed two banks across five branches with total assets amounting to $168 million.

In May 1988, First Wisconsin revealed plans to purchase Metropolitan Bank Group based in Bloomington, which operated six banks holding $200 million in assets. This transaction, completed by November 1988, represented the largest acquisition First Wisconsin had made in Minnesota up to that point.

July 1988 saw First Wisconsin expand further by acquiring St. Anthony Bancorp., the parent company of St. Anthony National Bank, which possessed $85 million in assets and included a branch located in Andover.

In September 1988, First Wisconsin announced the acquisition of Stillwater Holding Company, owner of First National Bank of Stillwater with $116 million in assets and First State Bank of Hugo with $40 million in assets. This stock-for-stock transaction increased First Wisconsin’s footprint in the Twin Cities area to nine banks operating 26 branches with combined assets of $857 million, positioning it as the fourth-largest banking presence in the metropolitan region.

Firstar (the rebranded First Wisconsin) continued its Minnesota expansion in January 1990 by acquiring First Western Bank, based in St. Louis Park, which had five branches and held $137 million in assets.

In August 1994, Firstar announced a stock acquisition valued at $106 million for Investors Bank Corporation headquartered in Wayzata. This merger was completed by April 1995.

January 1996 brought news of Firstar’s $220 million acquisition—paid partly in stock and cash—of American Bancorporation from Saint Paul, with the deal closing in July 1996.

Growth in Arizona

February 1989 marked Firstar’s announcement to acquire Metro Bancorp, based in Phoenix, along with its Metropolitan Bank subsidiary; financial details were not disclosed.

Growth in Iowa

In August 1990, Firstar declared a $200 million stock purchase of Banks of Iowa, a Des Moines-based holding company that operated 12 subsidiary banks. Finalized by April 1991, this acquisition created a $12 billion super regional bank under newly enacted interstate banking legislation.

July 1995 saw Firstar agree to acquire Harvest Financial Corporation from Dubuque and its subsidiary Harvest Savings Bank for $32.7 million in stock. The deal closed in January 1996 at a total value of $35.9 million, boosting Firstar’s Iowa assets to nearly $3 billion.

Star Banc Corporation

By late 1997, industry analysts considered Firstar a probable acquisition candidate due to its stock trends and ongoing regional banking consolidations such as National City's purchase of First of America and rumors surrounding Banc One’s interest in First Chicago NBD.

In July 1998, Cincinnati-based Star Banc Corporation (previously known as First National Cincinnati Corporation), parent company of Star Bank, announced its intention to acquire Firstar for $7.3 billion in stock. At that time, Firstar operated across Wisconsin, Illinois, Minnesota, Arizona, Iowa, Ohio, and Missouri; Star Banc maintained a presence in Ohio, Indiana, Kentucky, and Tennessee. The merger established a major Midwest banking institution governed by a combined board of 32 directors—14 from Firstar and 18 from Star Banc—ensuring balanced leadership.

The headquarters of the new entity was set in Milwaukee under the retained name Firstar. It was listed on the New York Stock Exchange under the ticker symbol FRS. Jerry Grundhofer, Chairman and CEO of Star Banc, assumed the roles of president and CEO of the merged company while Roger Fitzsimonds, Chairman and CEO of Firstar, became chairman. The merger was completed in November 1998.

Growth in Missouri

In May 1999, the newly merged Firstar revealed its $10.6 billion stock purchase of St. Louis-based Mercantile Bancorporation, a deal that was finalized by September of the same year. Following the merger, Jerry Grundhofer continued in his role as president and CEO of Firstar, while Mercantile's CEO, Thomas H. Jacobsen, assumed the position of chairman.

Expansion into Tennessee

Firstar expanded its presence in Tennessee in July 2000 by acquiring 41 branches from First Union. This move built upon its earlier acquisition of branches inherited from Star Banc within the state.

U.S. Bancorp

In October 2000, Firstar announced a $21 billion stock acquisition of Minneapolis-based U.S. Bancorp, which was completed in February 2001. The combined organization adopted the U.S. Bancorp name and relocated its headquarters accordingly, becoming the eighth-largest bank in the United States with $160 billion in assets and almost 2,200 branches spanning 24 states. Jerry Grundhofer maintained his role as president and CEO, while his brother John Grundhofer served as chairman until his scheduled retirement in December 2002.

To satisfy regulatory conditions imposed by the U.S. Department of Justice, Firstar divested 11 branches located in the Minneapolis area to Bremer Bank and transferred 2 branches in Council Bluffs, Iowa, to Liberty Bank, enabling approval for the merger.

The current U.S. Bancorp maintains the stock price history of Star Banc/Firstar prior to 2000; corporate filings before 1998 are under Star Banc, while those from 1998 through 2000 are recorded under Firstar.

External links