Skip to content
AnalystLens

KeyCorp Annual Report, Year Ended Dec 31, 1993

Filing Date
Filed March 31, 1994
Period End
December 31, 1993
In the record · 2016–202610-K1110-Q348-K141

KEY filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 141 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Aug ’16Aug ’16
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K filed March 31, 1994. Cited figures are marked; the original filing is the authoritative source.

Society Corporation (filed as Society Corporation; the merged company assumed the name KeyCorp, now KeyCorp) reported record 1993 net income of $347.2 milliona, or $2.93 per Common Share, up from $301.2 million, or $2.51, in 1992.

Results were absorbed after $53.9 millionb in fourth-quarter merger and integration charges tied to the March 1, 1994 merger with old KeyCorp of Albany, New York, which had about $33 billion in assets. Society itself had about $27 billion in assets at December 31, 1993, and reported a return on average common equity of 17.87% and a net interest margin of 5.26%. Because the merger was accounted for as a pooling of interests and occurred after year-end, the core financial statements reflect Society alone, while supplemental statements on pages 65 through 94 present the combined company, which had net income of $709.9 million for 1993 and total assets of $59.6 billion at year-end.

Credit quality improved substantially during 1993. The provision for loan losses fell to $72.2 millionc from $147.4 million, and nonperforming assets dropped to $224.4 million from $496.9 million, a decline the filing describes as 55%. Net interest income rose 5% to $1.2 billion, helped by a larger earning asset base that included the January 1993 acquisition of Society First Federal.

Noninterest expense rose 5% to $1.1 billiond, largely reflecting merger charges. Management expects roughly $100 million in annual cost savings from the old KeyCorp merger by the end of the first quarter of 1995, with about 50% achieved in 1994. Capital remained strong, with a Tier I risk-adjusted capital ratio of 8.65%, a total risk-adjusted capital ratio of 12.88%, and a leverage ratio of 7.18%, all of which the filing says place Society well capitalized.

The company paid cash dividends of $1.12 per share in 1993, and the quarterly dividend was raised to $.32 per share in January 1994. Shareholders' equity reached $2.04 billion at Society and $4.39 billion on a combined basis.

02—Key points

Key Highlights

  1. Record 1993 net income of $347.2 million, or $2.93 per Common Share, up from $2.51 in 1992 (Society alone, before the merger restatement)
  2. Fourth-quarter merger and integration charges of $53.9 million ($.33 per Common Share) tied to the March 1, 1994 merger with old KeyCorp
  3. Nonperforming assets fell to $224.4 million from $496.9 million, and the provision for loan losses dropped to $72.2 million from $147.4 million
  4. Net interest margin of 5.26% and return on average common equity of 17.87% for 1993
  5. Pro forma combined company (Society plus old KeyCorp) reported 1993 net income of $709.9 million and total assets of $59.6 billion
  6. Expected annual cost savings of approximately $100 million by the end of Q1 1995 from the merger, with about 50% expected in 1994
  7. Capital ratios well above regulatory minimums: Tier I risk-adjusted 8.65%, total risk-adjusted 12.88%, leverage 7.18%

03—Questions

Frequently Asked Questions

  1. What was the company's 1993 earnings performance?

    Society reported record 1993 net income of $347.2 million, or $2.93 per Common Share, compared with $301.2 million, or $2.51 per share, in 1992. The result included $53.9 million in fourth-quarter merger and integration charges, which reduced earnings by $.33 per share.

  2. How does the merger with old KeyCorp affect the reported figures?

    The merger with old KeyCorp took effect March 1, 1994, after year-end, and was accounted for as a pooling of interests. The main financial statements therefore reflect Society alone. Supplemental statements present the combined company as if the merger had occurred for all periods, showing 1993 combined net income of $709.9 million and total assets of $59.6 billion.

  3. Did asset quality improve in 1993?

    Yes. Nonperforming assets totaled $224.4 million at December 31, 1993, down from $496.9 million a year earlier, a decline the filing describes as 55%. The provision for loan losses fell to $72.2 million from $147.4 million, and the allowance for loan losses was $480.6 million, or 2.69% of loans.

  4. Is the company well capitalized?

    According to the filing, Society's Tier I risk-adjusted capital ratio was 8.65%, its total risk-adjusted capital ratio was 12.88%, and its leverage ratio was 7.18% at December 31, 1993. The filing states that these ratios qualify Society and its banks as well capitalized under prompt corrective action standards.

  5. What cost savings does management expect from the merger?

    Management expects cost savings of approximately $100 million annually by the end of the first quarter of 1995, with roughly 50% of that achieved in 1994. The filing notes that no assurance can be given that these savings will be realized.

04—Continue

← View all 10-K filings