To comply with Iowa's market share cap, Firstar Corp. has shifted $1 billion of deposits out of the state, the bank told the Federal Reserve Board in an Aug. 10 letter.

Firstar, based in the Milwaukee, would have exceeded the cap when its deal to acquire St. Louis-based Mercantile Bancorp. closes in the fourth quarter.

Under Iowa law, an institution cannot control more than 10% of deposits in the state. As of March 31, Firstar and Mercantile combined would have $4 billion of the state's $43.6 billion of deposits, according to a Firstar spokeswoman. She said the deposits were moved to Milwaukee.

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