A new banking organization in which Key Bank of Utah president and chief executive officer Ross E. Kendell will be responsible for Utah in a nationwide company, was announced Friday by KeyCorp and Society Corp.
KeyCorp, based in Albany, N.Y., and Society Corp., based in Cleveland, signed a merger agreement Oct. 4 that would result in the formation of a new company, based in Cleveland, that will rank as the nation's 10th-largest bank holding company with more than $58 billion in assets and some 1,300 banking offices.Subject to regulatory approvals, the merger is expected to be completed early in 1994.
"As a national organization with the distinction of providing locally focused customer service, the new Key will be able to provide our customers with expanded state-of-the-art financial products and services," said Kendell, who will continue in his current role with the new Key.
"At the same time, Key Bank of Utah will retain its flexibility to make its own loans, establish its own interest rates, and price its own products."
Kendell said the new structure of Key Bank will allow the Utah company to operate "in the best of both worlds," with the support of a large national company but also with the ability to make decisions at the local level.
The delivery of banking services in 13 states served by the new company will be structured into four areas: Northeast, Great Lakes, Rocky Mountains and Northwest. Each group will house a resource center to serve the banks within the group.
"Our vision is to build on the past and forge ahead to the future," said Victor J. Riley Jr., KeyCorp chairman, who will serve as chairman and CEO of the new company.
"Through this structure, we are creating a strong national banking franchise, fully capable of delivering the highest quality financial services to our customers while creating strong returns for our investors."
Robert W. Gillespie, chairman of Society Corp., will become president and chief operating officer of the new company.