01—Abstract
Summary
Summary of the 10-K/A filed March 21, 1994. Cited figures are marked; the original filing is the authoritative source.
This filing is the Retirement Savings Plan and Trust financial statements of First Empire State Corporation, a 401(k)-style defined contribution plan covering permanent full-time employees of the company and its subsidiaries, with the audit report from Price Waterhouse dated March 15, 1994.
Net assets available for plan benefits rose to $43,954,212a at December 31, 1993 from $33,625,214 at December 31, 1992. The 1993 net increase of $10,328,998 includes a $527,103 cumulative effect from a change in how the plan accounts for benefit payments payable to participants, which the auditors note in their opinion. Total contributions were $9,579,730 (employee $6,445,933; employer $3,133,797), and net investment income was $2,295,070, versus $5,011,005 in 1992.
The plan's investments at December 31, 1993 totaled $43,922,622,b with common stock at current value of $29,143,251 and First Empire common stock valued at $23,326,357 (165,729 shares, cost $14,913,922). Participants can direct contributions among a First Empire stock fund, a diversified equity fund, a money-market fund and a bond fund, and the plan held 2,695 active participants at year end. The filing reports that the plan acquired 36,408 shares of First Empire common stock in 1993 at a cost of $5,146,869, which is disclosed as a related-party transaction.
02—Key points
Key Highlights
- Net assets available for plan benefits grew to $43.95 million at December 31, 1993, up from $33.63 million a year earlier.
- Total contributions were $9.58 million in 1993: $6.45 million from employees and $3.13 million from employer matching.
- The 1993 net increase of $10.33 million includes a $527,103 cumulative effect from a change in accounting for benefit payments, adopted to conform to AICPA audit guidance.
- Net investment income fell to $2.30 million in 1993 from $5.01 million in 1992, largely because net appreciation in investments dropped to $1.28 million from $4.12 million.
- First Empire common stock represented $23.33 million of the plan's investments at current value, held as 165,729 shares.
- The plan bought 36,408 First Empire shares in 1993 for $5.15 million, a related-party transaction disclosed in the notes.
- The employer matches 75% of participant contributions, capped at 4.5% of compensation, and participant accounts are fully vested.
03—Questions
Frequently Asked Questions
What is the First Empire State Corporation Retirement Savings Plan and Trust?
It is a defined contribution plan for permanent full-time employees of First Empire State Corporation and its subsidiaries, administered by a committee appointed by the board of Manufacturers and Traders Trust Company (M&T Bank), a wholly-owned subsidiary. Employees who are at least 21 and have completed 12 months of continuous service are eligible.
How much can employees contribute and how much does the employer add?
Participants may reduce compensation by up to 8% through salary reduction, subject to Section 401(k) and 415 limits. The employer matches 75% of the participant's contribution, limited to 4.5% of the participant's compensation. Pre-tax contributions were limited to $8,994 in 1993.
What investment options do participants have?
Participants may invest salary reduction contributions in a First Empire stock fund, a diversified equity fund, a money-market fund or a bond fund, in 25% increments. Employer matching contributions follow the same allocation as elected by participants. Transfers among funds are permitted on January 1, April 1, July 1 and October 1.
Why did the plan's net investment income decline in 1993?
Net investment income was $2,295,070 in 1993 compared with $5,011,005 in 1992. The filing shows net appreciation in current value of investments of $1,277,410 in 1993 versus $4,119,057 in 1992, with interest and dividend income also lower in total, though the filing does not attribute the change to a specific cause.
What accounting change affected the 1993 results?
During 1993 the plan stopped accruing benefit payments payable to participants at period end, to comply with AICPA audit guidance. The cumulative effect increased 1993 net increase in net assets by $527,103, and the 1992 figures are presented as previously reported under APB Opinion No. 20.
04—Continue