Mercantile Bancorporation Explained

Mercantile Bancorporation
Trade Name:Mercantile Bank
Traded As: (1970–1999)
Type:Public
Fate:Acquired by Firstar Corporation
Successor:Firstar Corporation
Foundation: in St. Louis, Missouri as Mercantile Trust Company
Area Served:Missouri, Illinois, Kansas, Iowa, Arkansas, Kentucky
Key People:Thomas H. Jacobsen
Industry:Banking

Mercantile Bancorporation was the largest bank holding company in Missouri when it was acquired by Firstar Corporation in 1999.[1]

The Mercantile Bank of St. Louis was founded in St. Louis, Missouri, in 1850.

In 1996, its chief executive Thomas H. Jacobsen began a series of acquisitions, increasing its assets from $15.9 billion to $35.8 billion.[2] One of the biggest acquisitions was that of Mark Twain Bancshares in 1996.[3]

At the time of its acquisition by Firstar, Mercantile was a $36 billion multi-bank holding company headquartered in St. Louis operating 500 locations in Missouri, Iowa, Kansas, Illinois, Arkansas and Kentucky.

History

In December 1964, the Mercantile Trust Company converted from a state‐chartered trust company into a national bank and was renamed Mercantile Trust Company National Association.[4]

Mercantile Trust Company formed a holding company in 1970 called Mercantile Bancorporation to allow it to acquire other banks and to expand beyond St. Louis.[5] [6]

Upon the retirement of Donald E. Lasater in 1989, Thomas H. Jacobsen, a vice chairman of Florida-based Barnett Banks, replaced Lasater as president, chief executive, and chairman of Mercantile Bancorporation.[7]

Expansion in Missouri

In November 1991, Mercantile announced the pending acquisition of the St. Joseph-based Ameribanc with its American Bank subsidiaries for $87 million in stock.[8] [9] The acquisition was completed in April 1992.[10]

In August 1993, Mercantile announced the pending acquisition of the St. Louis-based United Postal Bancorp with its United Postal Savings Association subsidiary for $192 million in stock.[11] [12] The acquisition was completed in January 1994.[13]

In September 1994, Mercantile announced the pending acquisition of the Kansas City-based Central Mortgage Bancshares Inc. for $97 million in stock.[14]

In January 1995, Mercantile announced the pending acquisition of the Springfield-based Southwest Bancshares Inc. for $23 million in stock.[15]

In February 1995, Mercantile announced the pending acquisition of the Sikeston-based AmeriFirst Bancorporation with its AmeriFirst Bank subsidiary for $23.6 million in stock.[16]

In October 1996, Mercantile announced the pending acquisition of the St. Louis-based Mark Twain Bancshares Inc. with its Mark Twain Bank subsidiary for $855 million in stock.[17] [18] At the time of the announcement, Mercantile had 440 branches in Missouri, Illinois, Iowa and Arkansas while Mark Twain had 39 branches in St. Louis and Kansas City areas. The acquisition was completed in April 1997.[19] [20]

In December 1996, Mercantile announced the pending acquisition of the Chesterfield-based Roosevelt Financial Group Inc. with its Roosevelt Bank subsidiary for $1.07 billion in stock and cash.[21] [22] [23] At the time of the announcement, Mercantile had more than 500 branches in Missouri, Illinois, Iowa and Arkansas while Roosevelt had 83 locations in Missouri, Kansas and Illinois. To allow the merger to proceed, the Federal Reserve Board ordered Mercantile to divest banks in five markets.[24] Due to overlapping branches, Mercantile said it was planning to close 50 branch offices. The acquisition was completed in July 1997.[25] Branches were rebranded in November 1997.

Expansion in Illinois

In its first expansion move outside of Missouri, Mercantile announced in August 1986 the pending acquisition of the Alton-based First Bancshares Corp. of Illinois for an undisclosed in stock.[26] The acquisition was completed in February 1987.[27]

In August 1991, Mercantile announced the pending acquisition of the Centralia-based Old National Bancshares with its 2 banks for $22 million in stock and cash.[28] The acquisition was completed in December 1991.[29]

In July 1995, Mercantile announced the pending acquisition of the Sterling-based First Sterling Bancorp with its First National Bank of Sterling-Rock Falls subsidiary for $24 million.[30] The acquisition was completed in January 1996.[31]

In March 1996, Mercantile announced the pending acquisition of the Freeport-based Today's Bancorp with its two banks and 12 offices for $87.2 million in cash and stock.[32]

In August 1996, Mercantile announced the pending acquisition of the Alton-based Regional Bancshares Inc. with its Bank of Alton subsidiary for $41 million.[33]

In October 1997, Mercantile announced the pending acquisition of the Rockford-based HomeCorp Inc. with its 10-office HomeBanc subsidiary for $45 million in stock.[34] The acquisition was completed in March 1997 for $51 million.[35]

In February 1998, Mercantile announced the pending acquisition of the Springfield-based Firstbank of Illinois Company for $697 million in stock.[36] At the time of the announcement, Firstbank had 48 offices in Illinois and Missouri. The acquisition was completed in July 1998.

In August 1998, Mercantile announced the pending acquisition of the Rock Island-based Financial Service Corporation of the Midwest with its Rock Island Bank subsidiary for $118 million in stock.[37] The acquisition was completed in August 1998.[38]

Expansion in Kansas

In July 1992, Mercantile announced the pending acquisition of the family-owned Johnson County-based MidAmerican Corp. and Johnson County Bankshares Inc.[39] for $129 million in stock.[40] The acquisition was completed in January 1993.[41] [42]

In December 1995, Mercantile announced the pending acquisition of the Topeka-based Peoples State Bank for $94 million.[43] The acquisition was completed in August 1996.

Expansion in Iowa

In July 1993, Mercantile announced the pending acquisition of the Waterloo-based Metro Bancorporation with its subsidiary Waterloo Savings Bank for $55 million in stock.[44] The acquisition was completed in January 1994.[45]

In December 1994, Mercantile announced plans to acquire the Davenport-based Plains Spirit Financial Corporation with its First Federal Savings Bank of Iowa subsidiary for an undisclosed amount.[46]

In August 1995, Mercantile announced plans to acquire the Des Moines-based Hawkeye Bancorp with its 65 bank offices for $351 million in stock.[47] In May 1998, Mercantile announced plans to acquire the Iowa City-based First Financial Bancorporation and its First National Bank Iowa subsidiary for $169 million in stock.[48] [49] The acquisition was completed in September 1998.[50]

Expansion in Arkansas

In December 1994, Mercantile announced plans to acquire the North Little Rock-based TC Bankshares Inc. for $155.7 million in stock.[51]

In July 1997, Mercantile announced plans to acquire the Arkadelphia-based Horizon Bancorp for an unknown amount in stock.[52] The acquisition was completed in February 1998.[53]

Expansion in Kentucky

In January 1998, Mercantile announced plans to acquire the Paducah-based CBT Corporation, the holding company for four banks, for $285 million in stock.[54] The acquisition was completed in July 1998.[55]

Acquisition by Firstar

Just five months after Star Banc Corporation completed the acquisition of Firstar Corporation to form the new Firstar in November 1998, the newly combined Firstar announced in May 1999 the pending acquisition of Mercantile Bancorporation for $10.6 billion in stock.[56] [57] The acquisition was completed in September 1999.[58] After the merger, Jerry Grundhofer remained as president and chief executive officer of Firstar. Thomas H. Jacobsen, Mercantile's chief executive, became chairman of Firstar.

See also

Notes and References

  1. http://www.fundinguniverse.com/company-histories/Firstar-Corporation-Company-History.html profile in International Directory of Company Histories, Vol. 33. St. James Press, 2000 - via fundinguniverse.com
  2. News: Mercantile Bancorporation, Long a Buyer, Will Be Bought . . May 1, 1999 . Timothy L. . O'Brien.
  3. News: 0099-9660 . Michael J. . McCarthy . Mercantile Bancorp. to Acquire Mark Twain for $792 Million . . 2016-08-11 . 1996-10-29 . subscription .
  4. News: St. Louis Mercantile Bank Takes Out National Charter . . December 26, 1964 . .
  5. News: Mercantile Trust Co. . . March 31, 1970 . 26 . . subscription . Mercantile Trust Co. formed Mercantile Bancorporation Inc. to carry out the previously announced plan of seeking approval of the Federal Reserve Board and the Comptroller of the Currency to become a registered bank-holding company, John Fox, Mercantile chairman, announced. . .
  6. News: Mercantile Bancorporation . . March 11, 1971 . 18 . . subscription . Mercantile Bancorporation became a registered bank holding company. The company is composed of two wholly owned subsidiary banks, Mercantile Trust Co. and Mercantile Commerce Trust Co., with combined assets of $1,351,711,485. . .
  7. News: New Chairman Taking Over Mercantile . . February 28, 1989 . 1A . David . Nicklaus . subscription .
  8. News: Company Briefs . . November 20, 1991 . .
  9. News: Mercantile agrees to buy Ameribanc KC banks to merge ultimately as result of deal, spokesman says. . . November 13, 1991 . B1 . Mark . Davis . subscription .
  10. News: Mercantile, Ameribanc Inc. complete deal . . May 1, 1992 . B3 . . subscription .
  11. News: Mercantile Plans Acquisition Of United Postal . . August 18, 1993 . .
  12. News: Deal Could Make Mercantile Top Home Lender . . August 18, 1993 . 1C . Adam . Goodman . subscription . Mercantile Bancorporation Inc. is poised to become king of home lending in St. Louis with its planned purchase of United Postal Bancorp Inc. Mercantile, the second-biggest bank in the St. Louis area, is much better known for its commercial loans than its residential mortgages. But by forking over $180 million to buy United Postal, Mercantile could suddenly become the area's top home lender. United Postal is the second-largest savings and loan in the St. Louis area..
  13. News: Mercantile reports higher net income . . April 12, 1994 . D15 . . subscription .
  14. News: Mercantile to Acquire Central Mortgage In Stock Deal . . September 23, 1994 . .
  15. News: Business in brief: Mercantile Acquisition announced . . January 28, 1995 . B2 . . subscription . Mercantile Bancorporation Inc., a $12.2 billion bank holding company, said Friday it will acquire the smaller Southwest Bancshares Inc. of Springfield in a stock swap. Mercantile plans to issue 675,000 shares of its common stock for the outstanding stock of Southwest. That would make the deal worth about $23 million at Mercantile's closing share price Thursday of $34..
  16. News: Mercantile acquiring Sikeston, Mo., company . . February 21, 1995 . D16 . . subscription . Mercantile Bancorporation will further expand its presence in southeastern Missouri through a merger with AmeriFirst Bancorporation, based in Sikeston, Mo., the company has announced. St. Louis-based Mercantile said Friday it will issue 661,385 shares of common stock in exchange for the outstanding stock of AmeriFirst, which is privately held. Mercantile's stock closed at $35.75 Friday, putting the value of the deal about $23.6 million. AmeriFirst is the $164 million holding company for AmeriFirst Bank, which operates two offices in Sikeston and a branch in Cape Girardeau..
  17. News: Adding Another Bank: Mercantile To Acquire Mark Twain . . October 29, 1996 . .
  18. News: Mercantile In $855 Million Deal for Mark Twain . . October 29, 1996 . .
  19. Web site: 23 March 1998. The Bank of New York acquires former Mark Twain corproate business. Kansas City Business Journal.
  20. Web site: 7 September 1997. Going offshore on the Internet. 2020-09-28. Forbes. en.
  21. News: St. Louis Bank Acquiring Rival For $1 Billion . . December 24, 1996 . Charles V. . Bagli.
  22. News: $1 Billion Deal Creates Largest Missouri Bank . . December 24, 1996 . .
  23. News: Another Purchase For Mercantile Bancorporation . . December 24, 1996 . .
  24. News: Fed approves Mercantile buy of Roosevelt . . June 4, 1997 . .
  25. Web site: July 6, 1997. Mercantile wraps up Roosevelt deal, Edison CEO to resiign. St. Louis Business Journal.
  26. News: Mercantile Bancorporation Inc. reached an agreement Friday with the... . . August 1, 1986 . . subscription . Mercantile Bancorporation Inc. reached an agreement Friday with the First Bancshares Corp. of Illinois to acquire that company, which has $137 million in assets. Donald Lasater, the chief executive officer of Mercantile, said the boards of directors of both companies agreed in principle to the deal, which will give First Bancshares stockholders equitable amounts of Mercantile common stock. First Bancshares owns the First National Bank and Trust Company in Alton, the Airport National Bank in Bethalto and Midwest Information Processors Corporation in Alton. Mercantile owns 38 banks in Missouri and has assets of $6.45 billion..
  27. News: Interstate Merger . . February 18, 1987 . 13 . . . subscription . Dan Dawson and Cliff Honaker of Maguire Signs Inc. install a "Mercantile Bank" sign outside First National Bank's branch at Mather and State streets in Alton on Tuesday, the day that Mercantile Bancorporation completed its acquisition of First Banc-shares Corp. of Illinois. First Bancshares owned First National, now called Alton Mercantile Bank, and Airport National Bank of Bethalto, now Bethalto Mercantile Bank..
  28. News: Mercantile Buying Bank With 6 Illinois Offices . . August 14, 1991 . 1B . Jim . Gallagher . subscription .
  29. News: ST. LOUIS - BANKING - Mercantile Buys Old National . . December 3, 1991 . 9C . . subscription .
  30. News: Morning Briefing . . July 26, 1995 . 1C . . subscription .
  31. News: Morning Briefing . . January 3, 1996 . 1C . . subscription .
  32. News: Mergers: Banks Add Up 2 More Acquisitions . . March 21, 1996 . .
  33. News: Morning Briefing: Mercantile To Buy Bank Of Alton . . August 24, 1996 . 1C . . subscription .
  34. News: Mercantile to merge with HomeCorp in $45 million deal . . October 29, 1997 . .
  35. News: Mercantile wraps $51 million HomeCorp. purchase . . March 2, 1998 . .
  36. Web site: 2 February 1998. Mercantile in $697M merger - Feb. 2, 1998. 2020-09-28. CNN.
  37. News: Mercantile In $118 Stock Deal for Financial Service . . August 4, 1998 . .
  38. News: The Rock Island Bank changes its name today . . November 14, 1998 . Rita . Pearson.
  39. News: Missouri Firm to Acquire 1st National . . July 2, 1992 . Tim . Carpenter . 2017-05-05 . https://web.archive.org/web/20170915070721/http://www2.ljworld.com/news/1992/jul/02/missouri_firm_to_acquire/ . 2017-09-15 . dead .
  40. News: Mercantile outlines deal to buy five Kansas banks Hall family to sell intrests under state's new banking law. . . July 2, 1992 . A1 . Mark . Davis . subscription . Mercantile Bancorporation Inc. announced a $129 million acquisition of the Donald J. Hall family's Kansas banking interests Wednesday, the first day of interstate banking in the Sunflower State. The agreement covers MidAmerican Bank and Trust in Overland Park, Johnson County Bank in Prairie Village and banks in Topeka and Lawrence..
  41. News: Local Bank Merger Clears Final Hurdle . . November 17, 1992 . Gwyn . Mellinger . 2017-05-05 . https://web.archive.org/web/20170915070811/http://www2.ljworld.com/news/1992/nov/17/local_bank_merger_clears/ . 2017-09-15 . dead .
  42. News: Few Changes Likely From Bank Merger . . January 4, 1993 . . 2017-05-05 . https://web.archive.org/web/20170915070632/http://www2.ljworld.com/news/1993/jan/04/few_changes_likely_from/?print . 2017-09-15 . dead .
  43. News: Morning Briefing: Mercantile Adds Kansas Bank . . December 20, 1995 . 01C . . subscription .
  44. News: Mercantile Plans to Buy Bank In Iowa . . July 30, 1993 . 16D . . subscription . Mercantile Bancorporation dipped a toe into the Iowa banking market Thursday, announcing plans to buy a mid-sized bank in Waterloo. St. Louis' second-largest bank said it will buy Metro Bancorporation. Metro owns Waterloo Savings Bank, a nicely profitable commercial bank with about $378 million in assets. Mercantile plans to pay with 1.12 million shares of its own stock, worth about $55 million at current prices..
  45. News: Mercantile-Metro complete merger . . January 4, 1994 . D5 . . subscription . Mercantile Bancorporation Inc. of St. Louis has completed its merger with Metro Bancorporation Inc., the $378 million-asset holding company for the Waterloo Savings Bank, officials said Monday. The bank will be renamed Mercantile Bank of Northern Iowa later this spring, said Daniel Watters, president of Waterloo Savings Bank..
  46. News: Davenport bank to be bought out . . December 25, 1994 . 14 . . subscription . Mercantile Bancorporation Inc. of St. Louis is acquiring First Federal Savings Bank of Iowa, the Davenport institution that is the second-largest Iowa-based savings and loan. Mercantile announced Friday that it has agreed to merge with Plains Spirit Financial Corp., the owner of First Federal Savings Bank..
  47. News: Mercantile Bancorp Agrees to Purchase Hawkeye . . August 5, 1995 . .
  48. News: Mercantile buys Iowa bank: Bank holding company to buy First Financial in $169 million stock deal . . May 8, 1998 . .
  49. News: Jones. Dow. 1998-05-09. Company News; Mercantile Bancorp Agrees to Acquire First Financial. en-US. The New York Times. 2020-09-28. 0362-4331.
  50. Mercantile Bancorporation Inc. Completes Merger With First Financial Bancorporation . . September 28, 1998 . .
  51. News: Mercantile Bancorporation to Acquire Tc Bankshares . . December 6, 1994 . .
  52. Web site: 20 August 1997. Mercantile Bancorporatiion plans Arkansas expansion. Kansas City Business Journal.
  53. Web site: Smith. David. 2014-01-31. Bank of Ozarks agrees to purchase Summit, 11th acquisition since '10. 2020-09-28. Arkansas Democrat Gazette. en.
  54. News: New Kentucky home: Mercantile Bancorp Inc. said it agreed... . . January 12, 1998 . .
  55. Web site: 13 July 1998. BUSINESS MEMO: BANK AGREEMENT COMPLETED. Southeast Missourian.
  56. News: 0362-4331 . O'Brien . Timothy L. . Mercantile Bancorporation, Long a Buyer, Will Be Bought . . 2016-06-26 . 1999-05-01 .
  57. News: Firstar Corp. Buys Mercantile For $10.6 Billion: Merger Forms 13th-largest Bank . . May 1, 1999 . Melissa . Wahl.
  58. Web site: 20 September 1999. Fiirstar, Mercantile merger complete. 2020-09-28. Cincinnati Business Courier.

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