Around 20 years ago a key performance measure was developed to help community banks. It’s called the efficiency ratio. The equation is simple, total non-interest expense divided by net interest income plus total non-interest income. Most banks which recognize the value of this concept and utilize it shoot for their efficiency ratio to be 50% or less. The three largest non-interest expense items are normally salary and employee benefits expense, premised expense and data processing expense. But there isn’t one magic pill or solution to making operational efficiency improvements. It requires a thorough review of all facets of a bank's operation. This is where SAMCO helps our client banks. By eliminating the salary/benefits of in-house order management and review, a significant cost saving occurs. All of this while at no cost to the bank! Give us a call to discuss this further.