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Star Bank's Commitment Star Bank has made a commitment to define convenience and customer service in our market areas. Star's 24-Hour Banking System is the industry leader in alternative delivery. The diverse options in our 24-Hour Banking System give each customer the choice of how to handle their Star banking. Whether they use one option or many, that freedom of choice is another important part of convenience. Customers who use branches as their primary access to Star Bank have choices, too. Star Bank's network of branches continues to grow throughout the region with both traditional and non-traditional offices. Among our non-traditional branches are In-Store offices found at many of the finest supermarkets and other retailers in the tri-state. Star also operates offices in retirement centers and at corporate sites, such as Procter & Gamble facilities. Our mobile ATM van, the Star Cash Cruiser, travels to all our markets for special events, and Star Bank Express Video Centers are self serve offices round the clock. The graphic on this page demonstrates how non-traditional branches are becoming a larger part of our distribution system.  Our exclusive Five Star Service Guarantee ensures that every customer receives the best in banking service or is compensated in cash for their inconvenience. The Five Star Service Guarantee has become such an important and integral part of Star Bank culture that our employees wear a lapel pin to communicate our commitment to guaranteed service. You will see a replica
of that lapel pin on the cover of this report. It is worth its weight in gold! Convenience and customer service are two of the most important ways we put customers first and how we
differentiate ourselves from the competition.
Star Bank also is a leader in the development of new products and financial services which meet the changing needs of our customers. Star Bank is continuously designing new products, improving existing ones and adding benefits to service packages to ensure that every customer receives added value when they bank with Star Bank.  Enhanced in 1997, our EquiLine home equity line
of credit now offers our exclusive LockRate. Customers can lock in a fixed rate and term for up to three loans within their line of credit. We also added immediate credit card access to EquiLine with a Visa Gold Card,
a real convenience when using EquiLine for easy cash access or for major purchases anytime.
Knowing our customers Star Bank knows that the better we know our customers, the better we can serve them with the products and services and delivery systems which are most appropriate for them and the way they want to handle their finances. Star Bank has initiated several programs to help us understand our customers. Customer Profiling is conducted at all of our branch offices to determine a customer's financial situation and to assist the customer in pinpointing those services which will be most beneficial. Customer Profiling is an in-depth conversation which focuses not only on an immediate need, but also on how customers can structure their accounts to meet future needs as well.  Customer Profiling is now one of Star's most important tools in creating long-term customer satisfaction.
Star Bank also is making more valuable use of the information about our customers in our data base files. Through this information we are able to make product and service offers to customers that most closely fit their needs and to foresee the services and products they may need in the future. This process is a major advantage for both the customer, who receives only those more personalized offerings which are most likely to be useful, and for Star Bank as a way to focus our communications and our resources. Specialized service for smaller businesses  Star Bank understands that the success of smaller businesses is about hard work, long hours, commitment and the quality of their banking partnership. Star Bank is committed to small businesses, and Star offers a comprehensive line of products and services that help businesses with annual sales up to $5 million. Star's
24-Hour Customer Service, streamlined loan applications, Visa Business Check Card and PC based access to account information augment Star's complete range of services, including cash management and international trade services,
for this important and growing market segment. Star has established dedicated Small Business Banking sales teams in
all metropolitan markets to ensure quality service and expertise throughout the region.
Star Banc Finance, Inc. expands markets and product lines  Star Banc Finance, Inc. is Star's subsidiary consumer finance company established in 1995. The Alternative Lending program, designed for
Star Bank loan applicants who do not qualify for standard bank financing under Tier I credit guidelines, is marketed through Star Bank branches. Star Bank Home Equity Alternative featuring loan-to-values up to 100 percent
and debt ratios up to 45 percent, was introduced in 1995 and acquires its business through a network of mortgage
brokers. Star Banc Finance now operates in 17 states, direct and through brokers, with products ranging from real estate, home improvement, auto and installment loans to our special Memorial Loan funeral financing program.
At year-end 1997, Star Banc Finance loans outstanding totaled $232 million, a 73 percent increase over 1996. The company reported increases in all key financial results, compared to 1996, including an ROE of 38.6 percent,
ROA of 3.0 percent and an efficiency ratio of 31.6 percent.
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Profitable growth of existing business lines
Commercial banking
Startrust
Multiple delivery channels
Market expansion
Additional growth strategies