Corporate Strategy and Financial Performance
Expense Discipline
Efficiency Ratio (1)
72.8%
70.9%
64.6%
56.4%
57.9%
Strategic Target 58% - 63%
2018
2019
2020
2021
2Q22
Operating Leverage Ratio
1
2.9%
9.5%
13.4%
0.3%
2018
2019
2020
2021
2Q22
-1.6%
Significant portion of earnings improvement can be attributed to expense reductions
Efficiency ratio has decreased 15 basis points since 2018
Core processor negotiation resulted in multi-year savings
Restructuring and consolidation of regional operating structure
Existing operational infrastructure and technology investments positioned for continued growth
Enhanced implementation of technology resulting in on-going efficiencies and savings (Docusign, virtual
meetings, digital account openings and loan documentation, reduced printing, hybrid remote work options,
etc.)
Future expense savings initiatives
■
Analyzing real estate partnerships and physical space alternatives
Reviewing benefits structure and tax-saving strategies
Review of all contracts as they mature to negotiate future cost savings
20
20
(1) See Appendix for a reconciliation of these non-GAAP financial measuresView entire presentation