On October 14, 1974, First Security Corporation of Kentucky was incorporated by the management of the First Security National Bank as a bank holding company. This reorganization was approved by the stockholders at the annual meeting on May 20, 1975, by a favorable vote of over eighty-eight percent. Stockholders of the bank received two shares in the new holding company for every one share held in the bank.
In 1979 and 1981, William L. Rouse, Jr. became President and then Chairman, respectively, of the First Security National Bank. He succeeded Walter H. Hillenmeyer, Jr. as Chairman. Mr. Rouse continued to serve as President until 1982, when Neilan Thurman was elected President. Mr. Thurman was succeeded after his retirement in 1985, by Benjamin J. Elkin. In 1991, Mr. Elkin retired and William H. Hodgkin became President. Mr. Hodgkin was previously the President of First Security Affiliates, Inc. and First Security of Clark County.
During 1983, First Security Corporation of Kentucky's stock was listed on the National NASDAQ System, providing a national market for the bank's securities. A dividend reinvestment plan was introduced the same year. On December 12, 1983, First Security surpassed the billion dollar mark for the first time, with total assets of one billion twelve million dollars.
During the late 1980s, the banking industry began to suffer from a combination of low profit margins, shrinking market share and higher operating costs. A recession that began in 1991 resulted in significant loan losses. In 1991, First Security suffered the first loss since before the merger of the First National Bank and Lexington City National Bank in 1913. First Security posted a fifteen million dollar loss for 1991.
Board of Directors of the First Security Corporation, 1990.
Seated (left to right) William B. Sturgill, Homer L. Drew, James E. Bassett, III and Don Ball. Standing (left to right) William H. Hodgkin, Warren W. Rosenthal, Ambrose W. Givens, Alex G. Campbell, Jr., John M. McDonald, III, Benjamin J. Elkin, William L. Rouse, Jr. and Terrill A. Lassetter.
On November 27, 1991, First Security announced that it agreed to merge with Bank One Corporation of Columbus, Ohio. Bank One is the 11th largest bank in the country, with forty billion dollars in assets.
The merger was approved on July 7, 1992 by the Federal Reserve and on August 18, 1992 by the stockholders of First Security. On August 22, 1992, the existing Bank One, Lexington (which see) was consolidated with First Security National Bank and Trust Company, with the successor bank named Bank One, Lexington. At the same time, First Security's affiliates were consolidated into the parent bank in Lexington.
