First Security Corp. shareholders were told Monday that boosting the value of their stock in the financial services company - down $9 per share since last fall - is one of the top goals of management.
"After reaching an all-time high of $32.75 a share on September 8 last year, the market price of First Security stock, together with most quality bank stocks, (has) declined to a level last seen several years ago," Chairman Spencer F. Eccles told shareholders gathered in the Utah Power auditorium downtown for the company's 67th annual meeting.On Monday, First Security stock closed at $23.94 per share, down from its all-time high of $32.75 on Sept. 8, 1994.
Eccles said Friday's closing price of $23.75 equaled 125.26 percent of the stock's book value of $18.96 per share on March 31.
"The investor psychology which drove bank stock prices down is confusing, especially with regard to First Security," Eccles said. "Considering our financial performance of the past several years, we believe that the price of our stock has been unduly penalized.
"We look forward to the market ultimately recognizing this performance and our stock price returning to more realistic levels."
Earlier Monday, prior to the annual meeting, directors of the corporation declared a regular quar-ter-ly dividend of 28 cents per common share, payable June 5 to shareholders of record May 19. In January, directors raised the quarterly dividend from 26 cents per share to 28 cents. The annual dividend is now $1.12 per share.
In his remarks, Eccles told shareholders that 1994 was the most successful in First Security Corp.'s 66-year history, marked by record earnings and expansion.
He said the economy in First Security's six-state operating region outperformed the rest of the nation in 1994 and added that it is poised to do so again this year in terms of job growth, spending and overall economic performance.
First Security Corp. reported net income of $140.13 million in 1994, up 22.9 percent over 1993. Earnings per share were $2.80 for the year, up 17.6 percent over 1983.
In the first quarter of this year, First Security reported net income of $35.60 million, up 7.4 percent over the same period last year. Earnings per share were 70 cents for the quarter, up from 67 cents from the year earlier period.