Firstar Corporation

Firstar Corporation was a Milwaukee, Wisconsin-based regional bank holding company whose corporate history stretched from 1853 to 2001. It originated as Farmer's and Millers Bank in Milwaukee and later became First Wisconsin National Bank. The organization developed from a local banking institution into a multistate holding company through a combination of internal reorganizations, acquisitions, and geographic expansion. In 1929, the banking organization created Wisconsin Bankshares Corporation as a holding company designed to acquire and coordinate other banks. The holding company was renamed First Wisconsin Bankshares Corporation in 1960, First Wisconsin Corporation in 1974, and Firstar Corporation in 1988. Some subsidiary institutions continued using the First Wisconsin identity until the early 1990s, when the legacy brand was finally retired. Firstar's expansion was concentrated initially in Wisconsin and then extended into Illinois, Minnesota, Iowa, Arizona, Ohio, Missouri, Indiana, Kentucky, and Tennessee. Its acquisitions included community banks, savings institutions, and regional bank groups. The company also pursued a less typical strategy for a regional bank during the 1970s and 1980s by financing companies in South America that were purchasing American products. Exposure to the Latin American debt crisis caused losses when borrowers defaulted, illustrating the risks of its international lending activity. A major corporate turning point came in 1998, when Cincinnati-based Star Banc Corporation acquired Firstar in an approximately $7.3 billion all-stock transaction. The combined company retained the Firstar name, was headquartered in Milwaukee, and traded on the New York Stock Exchange under the FRS symbol. Star Banc executive Jerry Grundhofer became president and chief executive officer, while Firstar chief executive Roger Fitzsimonds became chairman. The enlarged Firstar then made further major acquisitions. In 1999 it acquired St. Louis-based Mercantile Bancorporation in an announced stock transaction valued at approximately $10.6 billion. In 2000 it purchased 41 Tennessee branches from First Union. Later that year, Firstar announced its acquisition of Minneapolis-based U.S. Bancorp in a stock transaction publicly valued at approximately $21 billion. The transaction closed on February 27, 2001. Although Firstar was the nominal corporate survivor, the combined company adopted the more recognizable U.S. Bancorp name and moved its headquarters to Minneapolis. Firstar Corporation therefore ceased to exist as an independent corporate identity, while its successor retained elements of the former Star Banc and Firstar corporate and stock-market history. The Firstar brand represented regional commercial banking, retail banking, community-bank acquisition, and bank holding-company management rather than a standalone consumer product line. Its most visible physical legacy in Milwaukee was the First Wisconsin Center, a 42-story headquarters building opened in 1973 and described as Wisconsin's tallest building. After the 2001 transaction, the Firstar name disappeared as the principal corporate brand, but its organizational history became part of present-day U.S. Bancorp's corporate lineage.

Firstar Corporation traced its origins to Farmer's and Millers Bank, founded in Milwaukee in 1853. The institution later became First Wisconsin National Bank in 1919 through organizational development and mergers. In 1929, it reorganized as Wisconsin Bankshares Corporation, a holding company created to acquire other banks. The holding company adopted the First Wisconsin Bankshares Corporation name in 1960 and became First Wisconsin Corporation in 1974. In 1988, it was renamed Firstar Corporation. The First Wisconsin organization expanded from its Wisconsin base into neighboring and selected western markets. Its first move outside Wisconsin came in 1986 with the announced acquisition of Du Page Bancshares in Illinois, followed by acquisitions involving Naper Financial and North Shore Bancorp in 1986 and 1987. During 1987 and 1988, it entered Minnesota through transactions involving Shelard Bancshares, Metropolitan Bank Group, St. Anthony Bancorp, and Stillwater Holding Company. It also entered Arizona through the 1989 announcement of Metro Bancorp's acquisition. In Wisconsin, Firstar continued building scale through transactions involving Elkhorn Bankshares, Federated Bank, and First Southeast Banking Corporation. In Iowa, it acquired Banks of Iowa, a group with 12 subsidiary banks, in a transaction announced in 1990 and completed in 1991. Additional Illinois, Minnesota, and Iowa acquisitions followed during the 1990s, including First Colonial Bankshares, First Moline Financial, Investors Bank Corporation, American Bancorporation, and Harvest Financial Corporation. The company constructed the First Wisconsin Center in Milwaukee, a 42-story headquarters building opened in 1973. The building became a prominent symbol of the organization and was identified as Wisconsin's tallest building. First Wisconsin also undertook international commercial lending during the 1970s and 1980s, financing South American companies purchasing American products. Its exposure to borrowers affected by the Latin American debt crisis led to losses when some loans defaulted. By the late 1990s, analysts viewed Firstar as a potential takeover target. In July 1998, Star Banc Corporation of Cincinnati announced an approximately $7.3 billion all-stock acquisition. The merger closed in November 1998. The combined company used the Firstar name, retained Milwaukee as its headquarters, and traded on the New York Stock Exchange under the FRS ticker. Jerry Grundhofer became president and chief executive officer, while Roger Fitzsimonds became chairman. Firstar then pursued another large-scale expansion. In May 1999, it announced the acquisition of Mercantile Bancorporation, headquartered in St. Louis, for approximately $10.6 billion in stock. The transaction closed in September 1999. Thomas H. Jacobsen, Mercantile's chief executive, became chairman, while Grundhofer remained president and chief executive. In 2000, Firstar acquired 41 Tennessee branches from First Union. In October 2000, Firstar announced a proposed acquisition of U.S. Bancorp. The transaction closed on February 27, 2001. Although Firstar was the nominal surviving corporation, the combined entity adopted the U.S. Bancorp name and moved its headquarters from Milwaukee to Minneapolis. The U.S. Bancorp identity was considered more recognizable, and Firstar Corporation ceased operating as an independent company. Antitrust conditions required the divestiture of 11 Minneapolis-area branches and two branches in Council Bluffs, Iowa. The Firstar name consequently became part of the predecessor history of modern U.S. Bancorp rather than an active banking brand.

• 2001

  Becomes U.S. Bancorp

  [1]Firstar Corporationen.wikipedia.org

  Firstar completed its acquisition of U.S. Bancorp and adopted the U.S. Bancorp name, ending Firstar's existence as an independent company.

• 1999

  Mercantile Bancorporation merger completed

  [1]Firstar Corporationen.wikipedia.org

  Firstar completed its acquisition of Mercantile Bancorporation, expanding its regional banking network.

• 1998

  Star Banc merger completed

  [1]Firstar Corporationen.wikipedia.org

  Star Banc Corporation acquired Firstar, while the combined company retained the Firstar name.

• 1988

  Firstar name adopted

  [1]Firstar Corporationen.wikipedia.org

  First Wisconsin Corporation changed its holding-company name to Firstar Corporation.

• 1973

  First Wisconsin Center opens

  [1]Firstar Corporationen.wikipedia.org

  The organization opened a 42-story Milwaukee headquarters building later associated with the Firstar legacy.

• 1929

  Holding-company structure created

  [1]Firstar Corporationen.wikipedia.org

  Wisconsin Bankshares Corporation was formed to acquire and coordinate other banks.

• 1919

  Adopts First Wisconsin National Bank identity

  [1]Firstar Corporationen.wikipedia.org

  The bank became First Wisconsin National Bank following organizational evolution and mergers.

• 1853

  Milwaukee banking institution founded

  [1]Firstar Corporationen.wikipedia.org

  Farmer's and Millers Bank was established in Milwaukee, the institution that ultimately developed into Firstar Corporation.

A regional bank holding company focused on acquiring and integrating community and commercial banks across the American Midwest and selected adjoining markets.

• Consumer banking

  Retail banking

  Firstar operated branch-based consumer banking businesses through its network of regional and community-bank subsidiaries. These activities centered on deposits, everyday transaction accounts, branch services, and consumer credit. The specific product names varied across acquired institutions, many of which retained local identities for periods after acquisition.

• Business banking

  Commercial banking

  Commercial banking was a core part of Firstar's holding-company model. The organization provided business deposits, working-capital facilities, commercial real-estate finance, and other lending through banks acquired across the Midwest. Its strategy emphasized assembling a broad regional banking franchise rather than marketing a single standardized national product line.

• Corporate finance

  International commercial lending

  During the 1970s and 1980s, First Wisconsin pursued lending to South American companies purchasing American products. This business gave the relatively small regional banking organization exposure to international credit markets, but also contributed to losses when borrowers were affected by the Latin American debt crisis and defaulted.

• 2000

  Acquire U.S. BancorpM&A

  Background

  Firstar pursued a major merger with Minneapolis-based U.S. Bancorp to create a larger national banking organization.

  Action taken

  Firstar announced a stock acquisition of U.S. Bancorp and completed the transaction on February 27, 2001.

  Aftermath

  The combined company adopted the U.S. Bancorp name and moved its headquarters to Minneapolis. Regulatory conditions required the sale of 11 Minneapolis-area branches and two Council Bluffs, Iowa, branches.

  Announced transaction value. Approximately $21 billion in stock (2000 announcement)

  Source

• 1999

  Acquire Mercantile BancorporationM&A

  Background

  After combining with Star Banc, Firstar sought additional scale in the central United States.

  Action taken

  Firstar announced and completed the stock acquisition of St. Louis-based Mercantile Bancorporation.

  Aftermath

  The acquisition expanded Firstar's Missouri presence and brought Thomas H. Jacobsen into the chairman role.

  Announced transaction value. Approximately $10.6 billion in stock (1999 announcement)

  Source

• 1998

  Accept Star Banc Corporation mergerM&A

  Background

  Firstar was viewed by market analysts as a possible takeover target after a period of stock-market strength and consolidation among large regional banks.

  Action taken

  Firstar agreed to be acquired by Cincinnati-based Star Banc Corporation in an all-stock transaction valued at approximately $7.3 billion. The combined organization kept the Firstar name and Milwaukee headquarters.

  Aftermath

  The merger closed in November 1998. Jerry Grundhofer became president and chief executive officer, and Roger Fitzsimonds became chairman.

  Announced transaction value. Approximately $7.3 billion (1998 announcement)

  Source

1. 1Firstar Corporationen.wikipedia.org