Expense Control Star works steadily to reduce all overhead costs that do not affect customer service and revenue generation. We control expenses through the judicious closing of traditional offices in "over branched" areas where another Star office can serve customers. At the same time, our branch network grows through acquisitions, the explosion of our new In-Store branches and our corporate on-site branches. We also lessen fixed costs through outsourcing of operations which can be done more efficiently externally. Alternative delivery systems, such as our Super ATMs, PC Banking, Internet Banking and 24-Hour Customer Service have reduced our service delivery expenses, compared to new brick and mortar traditional offices. Staffing models for all branches ensure that we are making the most effective use of our personnel and that there is peak staffing when our customers need it most. Any increases in operating budgets are tied to revenue generation, productivity or the achievement of specific customer service standards. Star's emphasis on expense control, coupled with revenue generation, is unwavering and ongoing. Accordingly, Star's efficiency ratio (expenses as a percentage of revenues) has consistently improved over the past four years and currently stands among the lowest in the industry. Balance Sheet Management and Capital Management Star Banc continues to pare lower yielding assets from its balance sheet. We have significantly reduced the amount of lower yield securities from our investment portfolio, as well as from the residential mortgage portfolio. We have replaced lower yielding assets with higher yielding loans, especially retail loans. Our management of the balance sheet maintains loan funding from our core deposit base, the most efficient and least rate sensitive system of funding, rather than from purchased funds. Star Banc is very intentional in its management of capital. With our focus on shareholder return, we carefully evaluate the capital necessary to continue building the Corporation, including potential acquisitions and investments in our lines of business. Concurrently, we consider dividend growth for our shareholders, our stock repurchase program and regulatory capital requirements. Only then, with a disciplined assessment of the return we can expect on each allotment, do we allocate capital for the benefit of the Corporation's profitability and its return to shareholders. Star increased the dividend by 25 percent in March 1997, the 25th consecutive year of dividend increases. Over the last five years Star Banc has increased its dividend by more than 105 percent. Building Shareholder Value The primary focus of Star Banc Corporation is to build shareholder value through the sound management of the Corporation. That is the result we strive to achieve when we offer our customers outstanding service and the utmost in convenience. Shareholder value is the goal of our expense control policies, our balance sheet management, our capital allocations and our everyday performance. The Corporation has outperformed the S&P 500 and peer banking companies in total shareholder return. back to the top (other categories) Profitable growth of existing business lines Commercial banking Consumer banking Multiple delivery channels Startrust Market expansion