Key Bancshares of Utah, the holding company for Key Bank of Utah, reported record performance for 1992 as net income rose 60.1 percent over the previous year to $16.58 million.
"This has been an outstanding year for Key Bancshares of Utah, said Ross E. Kendell, president and chief executive officer."Two of the most important measures of performance for a financial institution are return on assets (ROA) and return on equity (ROE)," said Kendell. "We are pleased to report that Key Bancshares achieved excellent ratios in both areas in 1992, with ROA at 1.54 percent and ROE at 22.53 percent."
Net yield on average earnings assets in 1992 was a "strong" 5.56 percent, said Kendell, up from 4.96 percent the previous year. The bank's efficiency ratio also improved, reduced from 61.3 percent in 1991 to 54.3 percent for 1992.
"The quality of our loan portfolio is another clear indication of the strength and soundness of the bank's performance in 1992," said Kendell. "At Dec. 31, Key Bank loans with risk dropped to .39 percent of total loans outstanding. This represents a fine decrease from the .64 percent reported at Dec. 31, 1991.
The bank's ratio of net charge-offs to average loans was .43 percent for 1991, an improvement from the "already superior" level of .58 percent reported in 1991. Kendell said the loan charge-off ratios for both 1991 and 1992 are well below the industry averages.
Kendell said Key Bank's total assets for last year averaged $1.08 billion, up 6.4 percent over the previous year. Average total deposits gained 5.3 percent while average total loans increased 7.2 percent to a new high of $686 million.
Average earning assets were at a record $992 million, up 7.0 percent, while average shareholders' equity increased 10.3 percent to $73.62 million.
The past year was a challenging one for Key Bank of Utah, said Kendell, and he foresees more such challenges - and opportunities - ahead in 1993.
The bank will open a new office in West Jordan by midsummer and plans to add five new automatic teller machines (ATMs) by the end of April, bringing to 27 the number of ATMs throughout the Utah Key Bank network that includes 36 banking offices statewide.
Key Bank of Utah is a subsidiary of KeyCorp, a multi-regional bank holding company based in Albany, N.Y., with assets exceeding $30 billion.