Firstar Corporation Overview and Operations

Firstar Corporation was a commercial bank that operated in the Midwest region of the United States. It was founded in 1989 and was headquartered in Milwaukee, Wisconsin.

Firstar was known for its innovative banking practices and community involvement. The company expanded rapidly through acquisitions and mergers, growing its presence in the region.

Firstar's operations were centered around providing a wide range of banking services to individuals, businesses, and governments. The company had a strong focus on customer service and community development.

Firstar's growth was fueled by its ability to adapt to changing market conditions and customer needs.

Firstar Corporation has a rich history dating back to 1853 when it was founded as Farmer's and Millers Bank in Milwaukee, Wisconsin.

The company went through several name changes over the years, becoming First Wisconsin National Bank in 1919 after internal evolution and mergers.

First Wisconsin reorganized as a holding company, Wisconsin Bankshares Corporation, in 1929 to acquire other banks.

The holding company was renamed First Wisconsin Bankshares Corporation in 1960, and again to First Wisconsin Corporation in 1974.

It wasn't until 1988 that the company's name was changed to Firstar Corporation.

Firstar Corporation constructed a 42-story headquarters building in Milwaukee, known as the First Wisconsin Center, which was completed in 1973 and remains the tallest building in Wisconsin.

First Wisconsin was involved in international lending during the 1970s and 1980s, providing loans to companies in South America to purchase American products.

However, this involvement led to losses due to the Latin American debt crisis, with some clients defaulting on their loans.

Roger Fitzsimonds took over as president and chief operating officer in January 1987, replacing Gary B. Rafn.

Fitzsimonds later became chairman and chief executive officer in February 1991, replacing John Hendee Jr.

Firstar Corporation expanded its reach through a series of strategic acquisitions. In Wisconsin, the company announced the pending acquisition of Elkhorn Bankshares Corporation in February 1989 for an undisclosed amount. This marked the beginning of Firstar's expansion beyond its home state.

Firstar's expansion into Illinois began in September 1986 with the announcement of the pending acquisition of Du Page Bancshares Inc. for $18.2 million in stock. The company continued to grow in the state, announcing the acquisition of Naper Financial Corporation in October 1986 for $43 million in cash.

Firstar's expansion into Minnesota started in March 1987 with the announcement of the pending acquisition of Shelard Bancshares for $25 million in cash. The company continued to grow in the state, announcing the acquisition of Metropolitan Bank Group in May 1988 for an undisclosed amount.

First Wisconsin made significant strides in expansion, particularly in Wisconsin. In July 1988, they announced the pending acquisition of St. Anthony Bancorp with its St. Anthony National Bank subsidiary for an undisclosed amount.

The acquisition of St. Anthony Bancorp marked a notable milestone in First Wisconsin's expansion plans.

In September 1988, First Wisconsin announced the pending acquisition of the Stillwater-based Stillwater Holding Company with its two bank subsidiaries for an undisclosed amount.

This acquisition further solidified First Wisconsin's position in the region.

In February 1989, Firstar announced the pending acquisition of the Elkhorn-based Elkhorn Bankshares Corporation for an undisclosed amount.

Firstar's expansion in Wisconsin continued with the acquisition of Federated Bank in September 1991 for $33 million in cash and stock.

The acquisition of First Southeast Banking Corporation in February 1994 for $55.4 million in stock further expanded Firstar's presence in the state.

Firstar's acquisition of First Colonial Bankshares Corporation in August 1994 for $314 million in stock marked a significant expansion of their operations in Wisconsin.

First Wisconsin made its first expansion move outside the state of Wisconsin in September 1986 by announcing the pending acquisition of Glen Ellyn-based Du Page Bancshares Inc. with its Du Page Bank & Trust Co. subsidiary for $18.2 million in stock.

In Illinois, First Wisconsin acquired several banks in the late 1980s and early 1990s. The company's expansion in the state was a significant move, marking its entry into the Illinois market.

First Wisconsin announced the pending acquisition of the Naperville-based Naper Financial Corporation with its two subsidiary banks for $43 million in cash in October 1986.

Acquisitions like these helped First Wisconsin establish a strong presence in Illinois, setting the stage for further expansion.

In March 1987, First Wisconsin announced the pending acquisition of the Northbrook-based North Shore Bancorp Inc. with its Bank of the North Shore subsidiary for $6.16 million.

Firstar, the company that would eventually replace First Wisconsin, continued the expansion trend in Illinois with the acquisition of the Deerfield-based DSB Corporation in August 1992 for an undisclosed amount.

The acquisition of the Deerfield State Bank subsidiary was completed in February 1993, further solidifying Firstar's presence in the state.

Firstar's expansion in Illinois also included the acquisition of the Moline-based First Moline Financial Corporation in August 1994 for $9.8 million in stock.

The acquisition of the First Federal Savings Bank subsidiary was completed in April 1995, bringing Firstar's total number of acquisitions in Illinois to several.

Firstar's acquisition of Phoenix-based Metro Bancorp in February 1989 marked another significant expansion move, although it's worth noting that Metro Bancorp was not based in Illinois.

Expansion in Minnesota was a significant chapter in the company's growth. First Wisconsin entered the state for the first time by announcing the pending acquisition of Shelard Bancshares in March 1987 for $25 million in cash.

Shelard Bancshares was the parent of two banks with five locations at the time of the announcement. In May 1988, First Wisconsin announced the pending acquisition of Metropolitan Bank Group for an undisclosed amount, which was the parent of six banks.

The acquisition of Metropolitan was completed in November 1988. Firstar then announced the pending acquisition of First Western Bank with five branch offices in January 1990 for an undisclosed amount.

Firstar continued its expansion in Minnesota by announcing the pending acquisition of Investors Bank Corporation with its Investors Savings Bank subsidiary in August 1994 for $106 million in stock. The acquisition was completed in April 1995.

The company's expansion in Minnesota culminated with the announcement of the pending acquisition of American Bancorporation in January 1996 for $220 million in stock and cash. The acquisition was completed in July 1996.

In August 1990, Firstar announced the pending acquisition of Des Moines-based Banks of Iowa with its 12 subsidiary banks for $200 million in stock.

The acquisition was completed in April 1991, marking a significant expansion for the company.

Expansion in Missouri was a significant move for Firstar, as it announced the pending acquisition of Mercantile Bancorporation in May 1999 for $10.6 billion in stock.

The acquisition was completed in September 1999, with Jerry Grundhofer remaining as president and chief executive officer of Firstar. Thomas H. Jacobsen, Mercantile's chief executive, became chairman of Firstar.

To make the merger happen, the U.S. Department of Justice required Firstar to sell some of its branches. This led to the sale of 11 branch offices in the Minneapolis-area to Bremer Bank of Saint Paul, Minnesota, and 2 branch offices in Council Bluffs, Iowa to Liberty Bank of West Des Moines, Iowa.

Star Banc Corporation was involved in a significant acquisition in 1998. The company announced its pending acquisition of Firstar Corporation for $7.3 billion in stock.

The combined company would have a strong presence in multiple states, with banking offices in Wisconsin, Illinois, Minnesota, Arizona, Iowa, Ohio, and Missouri, in addition to the existing offices in Ohio, Indiana, Kentucky, and Tennessee.

The merger agreement granted former Firstar board members a significant amount of control, with 14 out of 32 directors seats on the board of the new corporation.

The new company would be based in Milwaukee and would use the Firstar name, with its stock traded on the New York Stock Exchange under the symbol FRS.

Jerry Grundhofer, the Star Chairman and Chief Executive, would become president and chief executive of the new company, while Roger Fitzsimonds, the Firstar Chairman and Chief Executive, would become chairman.

Firstar Corp. is acquiring First Union's assets in Tennessee, where 450 people currently work. This acquisition will make Firstar the fourth largest bank in the Nashville area.

Firstar's president and CEO, Jerry Grundhofer, believes this deal will deepen their existing presence and provide a foothold in new and important markets in Tennessee.

The acquisition is expected to close in the fourth quarter of this year, and the terms of the transaction have not been disclosed.

MelCap Partners served as Firstar's exclusive investment banker and financial advisor in the sale of the Company.

Firstar's Shareholder, Dave Tenny, hired MelCap Partners to represent him in this important transaction, which was an honor and pleasure to work with through this exciting process.

We've worked with clients who have needed expert guidance in major transactions, like the sale of a company. MelCap Partners served as Firstar's exclusive investment banker and financial advisor in the sale of the Company.

Dave Tenny, Firstar's Shareholder, hired MelCap Partners to represent him in this important transaction, and we're grateful for the opportunity to have worked with him and his team.

Our role as investment bankers and financial advisors allowed us to provide valuable expertise and support throughout the process.

Us Bank is a result of a merger between Star Banc Corporation and Firstar Corporation. The merger created the 21st largest bank holding company in the US with over $38 billion in assets.

Firstar Bank was rebranded as Us Bank after the merger.

Firstar Corporation was a major player in the banking industry, with a market capitalization of over $10 billion at its peak.

The company's financials were strong, with a net income of over $1 billion in 1998.

Firstar's assets grew rapidly, increasing by over 50% in just three years.

In 1999, the company's stock price reached an all-time high of over $70 per share.