1. Association for Financial Technology Fall Conference 2013

2. Topics Lyndhurst, NJ Growth Industry Consolidation Outsourcing Employee attraction and retention Encouraging signs?

4. What Happened? Week of October 22, 2012 forecasts predicted a significant storm would hit the east coast Subsequent reports predicted landfall in northeast US, in vicinity of our Lyndhurst, NJ facility Staff considered and made preparations for what they considered likely issues –Localized flooding –Staff availability –Loss of electricity

5. What Happened? Storm hit Monday night, October 29 th 9:00 PM – high winds, light rain 11:00 PM – water entering the building –Levee failure several miles away Evacuation of facility –Systems shut down abruptly Early Tuesday AM October 30 th began process of relocation to DR site in Oklahoma City –Incredible commitment by employees OKC DR site preparedness

6. Issues Encountered Anything that could go wrong did Communications to customers Duplicate transactions Cash letter processing Staffing Ongoing cleanup/reconciliation of issues Steve Powless – Thank you

7. Lessons Learned Trust but verify –Test plans –Technology advances –Balance seasoned veterans Six most expensive words in business Minimize variability during the recovery Move quickly with customers Ignore attorneys and insurance adjusters Move quickly with regulators Never waste a crisis We have some incredible employees

8. Changes Made Management changes –Fresh perspectives, new viewpoints Organizational changes –Centralization, standardization Significant technology investments Governance changes –ERM, Audit/Compliance –“What’s the worst that could happen?” Proactive involvement with the regulators –They are not the enemy

9. Thanksgiving 2012

10. Other Topics Growth Industry Consolidation Outsourcing Employee attraction and retention Encouraging signs

11. Industry Consolidation Since mid-2010 the total number of banks has fallen by 11.4%, by far the largest three-year drop since the mid-to-late 1990s, according to data from the Federal Deposit Insurance Corp.'s most recent Quarterly Banking Profile. Of course, the banking industry has been shrinking steadily for decades, so it's not a huge surprise that the number of banks has dipped below 7,000, to 6,940 at June 30.

12. A Consolidating Industry 12

13. Industry Consolidation – Banks FDIC 06.13.12 to 06.13.13 Assets20132012Change% $0 - 49M833928-95-10% $50 - 99M13091414-105-8% $100 - 500M34733555-82-2% $500 - 999M673691-18-3% $1.0 – 10B553558-5-1% $10B - 30B60 00 Total6,9017,206-305-4%

14. Assets20132012Change% $0 - 49M4,5314,822-291-6% $50 - 99M792818-26 -3% $100 - 500M1,0631,056+7+1% $500 - 999M223216+7+3% $1.0 – 10B204189+15+7% Total6,8137,101-288-4% As reported by Callahan 6-30-12 to 6-30-13 Industry Consolidation – Credit Unions

15. Stability In Our Target Markets 15 Banks Assets20132012Change% $100 - 500M3,4733,555-82-2% $500 - 999M673691-18-3% $1.0 – 10B553558-5-1% $10 – 30B60 0- Total3,4733,555-105-2% Credit Unions Assets20132012Change% $50 - 99M792818-26-3% $100 - 500M1,0631,05671% $500 - 999M22321673% $1.0 – 10B204189157% Total2,2822,27930% Net consolidation of 1.4% in our target market

16. 5-Year Projections At Current Rates Bank Assets20132018Change% 100 - $500M3,4733,139-334-10% 500 - $999M673578-95-14% 1.0 – $10B553526-27-5% 10 – $30B60 00% Total4,7594,303-456-10% Credit Union Assets20132018Change% 50 - $99M792680-112-14% 100 - $500M1,0631,117545% 500 - $999M2232593616% 1.0 – $10B2042868240% Total2,2822,342603% Combined Total7,0416,645-396-6% 2% per year.6% per year growth Net 1.2% per year

17. Growth in a Consolidating Industry 17

18. Vendor Consolidation Online Resources acquired by ACI Open Solutions acquired by Fiserv Intuit/Digital Insights acquired by Thoma Bravo (private equity) Harland Financial Solutions acquired by Davis + Henderson (D+H) Challenge – What is the problem being solved?

19. In-house to Outsource Transitions

20. The definition of engagement by the HR Executive Forum is: Employee engagement is commitment to job, manager, team, and organization, which drives effort and intent to stay, resulting in improved performance and retention. Employee Engagement Survey

21. 21

22. Full Time Turnover By Fiscal Year

23. 23 Pillars Of Success Employees Customers Shareholders

25. Grant Thornton LLP, BankDirector Survey 130 senior executives and directors –71% work for or serve on board of a publicly owned institution –CEO – 18% –Serve on audit committee – 29% US banks over $500M in assets –Over $10 billion assets – 24% –$5 – 10 billion – 13% –$1 – 5 billion – 38% –$500 million - $1 billion – 24%

27. Grant Thornton LLP, BankDirector Survey

28. Cyber-Security Concerns

29. Efficiency and Technology Plans

30. Opportunities are out there Thanks for having me