Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity & Inclusion
• Community Investment
• Ethical Business Practices

Social Achievements

• Formed a Diversity & Inclusion Advisory Council with 15 employee representatives.
• Continued commitment to equal employment opportunity through an affirmative action plan.
• Record growth in transaction deposit accounts, up $2.7 billion or 38%.
• Record loan production of $6.2 billion, up $2.1 billion or 51%.
• Improved Net Promoter Score to 51, up from 17 four years prior.
• Originated over 6,500 SBA PPP loans in four weeks, with nearly 50% going to new clients.

Climate Goals & Targets

Environmental Challenges

• Lower interest rates resulting in a challenging interest rate environment and record prepayment/refinancing of long-term assets.
• Increased credit costs due to uncertainty regarding future credit quality from the COVID-19 pandemic.
• Higher operating costs due to investments in client experience, operations, and compliance.

Mitigation Strategies

• Growing commercial loans with shorter average lives and transaction deposit accounts to position for changing interest rates.
• Increased credit loss allowance from $138 million to $192 million (39% increase).
• Strategic objective to shift deposit accounts away from higher-cost certificates of deposit to lower-cost transaction accounts.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community and Social Responsibility
• Human Capital
• Environmental Responsibility
• Corporate Governance

Environmental Achievements

• Reduced paper costs by 25% over 2017 levels by going paperless.
• Reduced corporate real estate square footage by 12% through a combination of remote work and office redesign.
• Reduced company vehicle fleet by 40% with plans to replace with electric vehicles.

Social Achievements

• Awarded 234 grants to local organizations totaling $969,640.
• Employees volunteered 8,138 hours in support of 513 organizations.
• Matched employee contributions to United Way, totaling $702,196.
• Invested over $289,000,000 in community development lending and affordable housing.
• Provided approximately 9,000 PPP loans totaling over $1,100,000,000 to businesses.

Governance Achievements

• Separated the positions of Chairman of the Board and Chief Executive Officer in 2017.
• Established various committees to monitor and oversee management.
• Maintained a variety of corporate governance documents and policies available on their website.
• No known data breach in 2019, 2020, or 2021.

Climate Goals & Targets

Environmental Challenges

• Economic shutdown due to the Covid-19 pandemic.
• Maintaining employee safety and morale during the pandemic.
• Cybersecurity threats.

Mitigation Strategies

• Rolled out a Small Business Lifeline loan program.
• Provided mortgage payment deferrals to homeowners.
• Created a Covid Response Team to manage the pandemic.
• Implemented flexible scheduling and remote work options.
• Invested in technology and cybersecurity measures.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Voted 2021 and 2022 Best Big Bank by Newsweek in 4 of their 8 states

Environmental Metrics

ESG Focus Areas

• Community Development
• Financial Literacy
• Employee Well-being
• Diversity, Equity & Inclusion
• Environmental Responsibility
• Corporate Governance
• Cybersecurity

Environmental Achievements

• Reduced corporate real estate square footage by 17%
• Reduced paper use by 25% through digitization
• Improved energy efficiency through building renovations and LED lighting

Social Achievements

• 8,771 employee volunteer hours, over 580 in financial literacy
• $1,111,000 in grants donated to 242 community organizations
• Launched Smart Start and Smart Start Boost loans for low-income homebuyers
• Added three new employee benefits: discounted employee stock purchase plan, tuition reimbursement, and paid parental leave
• Net Promoter Score of 57, one of the highest in the industry

Governance Achievements

• Separation of Chairman of the Board and CEO roles
• Established various Board committees for oversight
• Robust information security program aligned with industry standards and regulations
• No material cybersecurity incidents resulting in revenue loss in the last three years

Climate Goals & Targets

Environmental Challenges

• Challenging economy and soaring interest rates impacting community development lending
• Maintaining cybersecurity in a constantly evolving threat landscape

Mitigation Strategies

• Launched Smart Start and Smart Start Boost loan programs to adapt to increased needs and higher interest rates
• Continuous investment in cybersecurity people, technology, and training; partnerships with CISA and external firms for regular assessments

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Voted 2021, 2022 and 2023 Best Big Bank by Newsweek in 3 of our 8 states!