Star Banc Corporation

Star Banc Corporation

File:Star Banc Corporation Logo.svg
Trade name	Star Bank
Formerly	First National Cincinnati Corporation (1974–1988)
Company type	public
Traded as	Template:NYSE was (1988–1998)
Industry	Banking
Founded	1863 (1863) as the First National Bank of Cincinnati in Cincinnati, Ohio
Defunct	Template:End date and age
Fate	Acquired By Firstar
Successor	Firstar and later U.S. Bancorp
Headquarters	Cincinnati, Ohio
Area served	Ohio, Indiana, Kentucky, and Tennessee
Key people	Jerry Grundhofer
Website	archived official website

Star Banc Corporation was a regional banking holding company headquartered in Cincinnati, Ohio. In 1998, it acquired Firstar and adopted the Firstar name. Subsequently, the combined organization purchased U.S. Bancorp in 2001 and assumed the U.S. Bancorp identity. The company’s roots date back to 1863 with the establishment of the First National Bank of Cincinnati.

History

The First National Bank of Cincinnati commenced operations in 1863 under National Charter #24, a charter still maintained by U.S. Bancorp today.

To facilitate growth beyond Cincinnati and pursue acquisitions, the bank reorganized into a holding company named First National Cincinnati Corporation in January 1974.

In July 1988, all seventeen subsidiary banks were unified under the Star Bank brand, including Ohio State Bank in Columbus, which became Star Bank Central Ohio. Concurrently, the First National Bank of Cincinnati was renamed Star Bank, N.A., Cincinnati.

To maintain consistency with its subsidiaries’ branding, the holding company itself changed its name to Star Banc Corporation in April 1989.

Growth Across Ohio

Beginning its expansion outside Hamilton County in May 1975, First National Cincinnati Corporation acquired Miami Deposit Bank located in Yellow Springs, Ohio, from Midwestern Fidelity Corporation for $3.6 million, increasing its branch count to 24. In May 1976, it announced plans to acquire First National Bank of Ironton and First National Bank & Trust Co. of Troy; both transactions were completed by August that year.

The acquisition of Third National Bank of Circleville for $2.9 million was announced in July 1977 and finalized by December. In December 1978, an agreement was reached to purchase Commercial & Savings Bank in Gallipolis for $5.4 million, completed by August 1979. October 1979 brought an agreement to acquire Portsmouth Banking Company, which operated six branches with $70 million in assets; this deal closed in August 1980 for $15 million.

In April 1981, the corporation agreed to acquire Second National Bank of Hamilton for $22.2 million; this transaction was completed in March 1982. July 1982 saw an agreement to purchase Farmers and Traders National Bank of Hillsboro for $6.8 million; the deal closed in March 1983.

December 1982 marked the announcement of purchasing Bank One of Fairborn from Banc One Corporation, adding three offices and $60 million in assets; this acquisition was finalized early in 1983. In March 1984, plans were made to acquire Preble County National Bank in Eaton with $58 million in assets; this closed by February 1985. Later that year, in December 1984, Ohio State Bank in Columbus was acquired from BancOhio Corporation for $230 million in assets and eighteen branches; completion occurred in July 1985.

Following the failure of Home State Savings Association, First National Cincinnati obtained ten Home State Savings Bank branches across Cincinnati, Middletown, and Dayton in June 1985.

In August 1987, an agreement was reached to acquire First Sidney Banc Corporation along with its subsidiary First National Bank of Sidney ($166 million assets); this deal closed by January 1988. December 1987 included plans to purchase First National Bancorp and its First National Bank of Miamisburg subsidiary ($140 million assets); finalized by July 1988 and merged with Miamibank N.A., forming Star Bank N.A., Dayton with $325 million in assets.

Star Banc Corporation agreed to buy twenty-eight Ameritrust Corporation branch offices for $22 million in March 1992 as part of regulatory divestitures related to Ameritrust’s merger with Society Corporation; this transaction concluded by June.

In September 1994, Star Banc expanded significantly into Northeast Ohio by acquiring forty-seven branches and deposits totaling $1.12 billion from the failed TransOhio Federal Savings Bank through the Resolution Trust Corporation for $122.4 million.

November 1996 saw Star Banc acquire seven AmeriFirst branch offices from Mid Am, Inc., bringing approximately $100 million in deposits; this was completed by February 1997.

In February 1998, Star Banc purchased fifty-three Ohio branches divested by Banc One Corporation amid its merger preparations with First Chicago NBD forming Bank One Corporation. Federal regulators approved forty-nine branches for closure by June that year. This acquisition expanded Star Banc’s presence to a total of 286 branches within Ohio and brought its overall network across three states to 383 locations.

Growth in Kentucky

First National Cincinnati Corporation took its initial step beyond Ohio in November 1985 by revealing plans to acquire New Bancshares Inc., based in Newport, which included Newport National Bank as a subsidiary. The financial details were not disclosed. At that time, the bank managed approximately $110 million in assets and operated four branches. This transaction was finalized in March 1986.

In September 1987, the corporation announced its intention to purchase Peoples Liberty Bancorporation, headquartered in Covington, which held assets totaling $220 million. The deal reached completion in February 1988.

By November 1989, Star Banc Corporation declared its forthcoming acquisition of Verona Bank from Verona, possessing $37.4 million in assets. This acquisition, completed by May 1990, reinforced Star Banc's foothold in Northern Kentucky.

In January 1991, Star Banc revealed plans to acquire Kentucky Bancorporation of Covington, which managed six banks with 17 locations and reported a net income of $1.99 million for the nine months ending September. Upon completion in September 1991, this merger established the largest financial institution in Northern Kentucky, boasting over $730 million in assets and controlling a 22% share of deposits.

Star Banc expanded further in September 1997 by announcing the acquisition of Great Financial Corporation from Louisville for $655 million in stock. Great Financial held $3 billion in assets and operated 45 branches throughout Kentucky and Indiana. The acquisition concluded in February 1998, increasing Star Banc's network to 325 branches and $14 billion in assets across Ohio, Kentucky, and Indiana.

In April 1998, Star Banc unveiled plans to acquire Trans Financial Inc., based in Bowling Green, for $696 million in stock. Trans Financial maintained 56 branches spanning Kentucky and Tennessee, marking Star Banc's initial expansion into Tennessee. The transaction was completed by August 1998.

Growth in Indiana

First National Cincinnati Corporation entered the Indiana market in January 1986 through the announcement of acquiring Peoples National Bancorp of America from Lawrenceburg for $6.5 million. Peoples National operated four branches with $55 million in assets. This marked the corporation’s first banking acquisition within Indiana and was finalized by June 1986.

The following month, February 1986, the company declared its intent to acquire Second National Corporation of Richmond—the parent company of Second National Bank of Richmond—in a stock deal valued at $44.9 million. With assets totaling $320 million, Second National was acquired by June 1986, broadening First National Cincinnati's presence further into Indiana.

In August 1987, an agreement was reached to acquire Aurora First National Bancorp from Aurora, Indiana, which held $55 million in assets across three branches. This acquisition closed in January 1988 and enhanced the company’s market position within southeastern Indiana. At that time, First National Cincinnati controlled 13 banking subsidiaries operating 129 offices throughout central and southern Ohio, northern Kentucky, and eastern Indiana.

These targeted acquisitions within Indiana were designed to solidify First National Cincinnati’s regional influence amid intensifying consolidation among Cincinnati-area banks. Although it was the second-largest locally owned bank holding company at the time, it anticipated becoming the largest following the merger between Central Bancorporation Inc. and PNC Financial Corp.

Firstar

In July 1998, Star Banc Corporation revealed plans to acquire Milwaukee-based Firstar Corporation in a stock transaction valued at $7.3 billion. At that time, Firstar's operations spanned Wisconsin, Illinois, Minnesota, Arizona, Iowa, Ohio, and Missouri, whereas Star Banc's presence covered Ohio, Indiana, Kentucky, and Tennessee. The merger resulted in former Firstar directors holding 14 out of 32 seats on the combined company's board, thereby shaping its strategic direction. Although Star Banc was technically the surviving entity—maintaining its charter and stock lineage—the consolidated bank was headquartered in Milwaukee under the Firstar brand and adopted Firstar’s ticker symbol (FRS). Jerry Grundhofer, who served as Chairman and CEO of Star Banc, assumed the roles of president and CEO of the merged organization; meanwhile, Roger Fitzsimonds, Firstar’s Chairman and CEO, continued as chairman. Finalized in November 1998, the merger established an extensive network of 720 full-service banking branches across nine states.

Subsequently, two years later, Firstar acquired Minneapolis-based U.S. Bancorp, which itself had been created through a 1997 merger between Minneapolis-based First Bank System and the original U.S. Bancorp headquartered in Portland, Oregon. Following this transaction, the combined institution adopted the U.S. Bancorp name and shifted its headquarters to Minneapolis but preserved Star Banc’s stock price history and charter predating 1998. The bank also acknowledges Star Banc’s establishment in 1863 as its foundational date.

Sponsorships

Beginning in 1995, Star Banc Corporation served as the title sponsor for the annual Star Bank LPGA Classic golf event held at the Country Club of the North in Beavercreek, Ohio. This corporate sponsorship persisted after Star Banc's acquisition of Firstar and subsequent rebranding in late 1998; the tournament was conducted under the Firstar banner in 1999. Sponsorship concluded in 2001 following Firstar’s purchase of U.S. Bancorp.

In April 1997, Star Bank became the official banking partner of the Cincinnati Reds, initiating a broad marketing initiative that included advertisements throughout the stadium and on broadcasts. This partnership ended in August 2000 when the Reds entered into an agreement with Provident Bank, which through subsequent mergers became part of National City and later PNC, both of which maintained sponsorship ties.

See also

• Star Bank LPGA Classic
• Fourth & Walnut Center