Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

October 23, 2023

ENTERPRISE FINANCIAL SERVICES CORP

(Exact name of registrant as specified in its charter)


Delaware	001-15373	43-1706259
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)


150 N. Meramec Avenue, St. Louis, Missouri (Address of principal executive offices)			63105 (Zip Code)

Registrant's telephone number, including area code

(314) 725-5500


Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

EFSC

Nasdaq Global Select Market

Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A

EFSCP

Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 23, 2023, Enterprise Financial Services Corp (the "Company" or "EFSC") issued a press release announcing financial information for the quarter ended September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

On October 24, 2023, at 10:00 a.m. Central time, the Company intends to hold a webcast to present information on its results of operations for the quarter ended September 30, 2023. The slide presentation which will accompany the webcast is furnished as Exhibit 99.2 and is incorporated herein by reference.

The press release, slide presentation and information contained therein and in this Item 2.02 shall not be deemed “filed” with the Securities and Exchange Commission.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit

Number Description

99.1 Press Release dated October 23, 2023.

99.2 Presentation to be conducted October 24, 2023.

104 The cover page of this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ENTERPRISE FINANCIAL SERVICES CORP

Date:

October 23, 2023

By:

/s/ Troy R. Dumlao

Troy R. Dumlao

Executive Vice President and Chief Accounting Officer

EXHIBIT 99.1

ENTERPRISE FINANCIAL REPORTS THIRD QUARTER 2023 RESULTS

Third Quarter Results

•Net income of $44.7 million, $1.17 per diluted common share

•Net interest margin of 4.33%, quarterly decrease of 16 basis points

•Net interest income of $141.6 million, quarterly increase of $0.9 million

•Total loans of $10.6 billion, quarterly increase of $104.2 million

•Total deposits of $11.9 billion, quarterly increase of $290.0 million

• Tangible common equity to tangible assets1 of 8.51%

St. Louis, Mo. October 23, 2023 – Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), said today upon the release of EFSC’s third quarter earnings, “We had strong third quarter operating results with earnings per share of $1.17, a net interest margin of 4.33%, and a return on average assets of 1.26%. In a challenging environment, we continued to expand net interest income while strengthening liquidity and increasing our customer base. In line with our expectations, loan growth moderated this quarter, and we successfully increased customer deposits and reduced wholesale funding. The strength of our balance sheet and operating revenue has us well-positioned to continue delivering long-term shareholder value.”

Highlights

•Earnings - Net income in the third quarter 2023 was $44.7 million, a decrease of $4.5 million, compared to the linked quarter and a decrease of $5.5 million from the prior year quarter. Earnings per share (“EPS”) was $1.17 per diluted common share for the third quarter 2023, compared to $1.29 and $1.32 per diluted common share for the linked and prior year quarters, respectively.

•Pre-provision net revenue2 (“PPNR”) - PPNR of $65.1 million in the third quarter 2023 decreased $3.8 million from the linked quarter and increased $0.2 million from the prior year quarter.

•Net interest income and net interest margin (“NIM”) - Net interest income of $141.6 million for the third quarter 2023 increased $0.9 million and $17.3 million from the linked and prior year quarters, respectively. NIM was 4.33% for the third quarter 2023, compared to 4.49% and 4.10% for the linked and prior year quarters, respectively. Net interest income has benefited from higher average loan and investment balances combined with expanding yields on earning assets. NIM decreased 16 basis points from the linked quarter, primarily due to the increase in deposit interest expense and increased 23 basis points from the prior year quarter primarily due to an increase in earning asset yields.

•Noninterest income - Noninterest income of $12.1 million for the third quarter 2023 decreased $2.2 million and increased $2.6 million from the linked and prior year quarters, respectively. The decline from the linked quarter was primarily due to a decrease in tax credit and community development income,

1 Tangible common equity to tangible assets is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

2 Pre-provision net revenue is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

partially offset by a gain on the sale of SBA loans. The increase from the prior year quarter was primarily due to the gain on sale of SBA loans.

•Noninterest expense - Noninterest expense of $88.6 million for the third quarter 2023 increased $2.7 million and $19.8 million from the linked and prior year quarters, respectively. The increase from both the linked and prior year quarters was primarily due to an increase in variable deposit costs and employee compensation.

•Loans - Loans totaled $10.6 billion at September 30, 2023, an increase of $104.2 million, or 3.9% on an annualized basis, from the linked quarter and an increase of $1.3 billion, or 13.5%, from the prior year period. Average loans totaled $10.5 billion for the quarter ended September 30, 2023, compared to $10.3 billion and $9.2 billion for the linked and prior year quarters, respectively.

•Asset quality - The allowance for credit losses to total loans was 1.34% at both September 30, 2023 and June 30, 2023 and 1.50% at September 30, 2022. The ratio of nonperforming assets to total assets was 0.40% at September 30, 2023, compared to 0.12% and 0.14% at June 30, 2023 and September 30, 2022, respectively. The provision for credit losses of $8.0 million recorded in the third quarter 2023 was primarily related to net charge-offs of $6.9 million and the increase in nonperforming assets.

•Deposits - Total deposits increased $290.0 million from the linked quarter to $11.9 billion as of September 30, 2023. Average deposits totaled $11.9 billion for the quarter ended September 30, 2023, compared to $11.4 billion and $11.2 billion for the linked and prior year quarters, respectively. At September 30, 2023, noninterest-bearing deposit accounts totaled $3.9 billion, or 32.3% of total deposits, and the loan to deposit ratio was 89.1%.

•Liquidity - The Company’s total available on- and off-balance-sheet liquidity was approximately $4.7 billion at September 30, 2023. On-balance-sheet liquidity consisted of cash of $370.7 million and $790.9 million in unpledged investment securities at September 30, 2023. Off-balance-sheet liquidity consisted of $945.1 million available through the Federal Home Loan Bank, $2.5 billion available through the Federal Reserve and $120.0 million through correspondent bank lines. The Company also has an unused $25.0 million revolving line of credit and maintains a shelf registration allowing for the issuance of various forms of equity and debt securities.

•Capital - Total shareholders’ equity was $1.6 billion and the tangible common equity to tangible assets ratio3 was 8.51% at September 30, 2023, compared to 8.65% at June 30, 2023. The tangible common equity to tangible assets ratio, adjusted for unrealized losses on held-to-maturity securities,3 was 7.91% at September 30, 2023 and 8.25% at June 30, 2023. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.1% and a total risk-based capital ratio of 13.1% as of September 30, 2023. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.2% and 14.1%, respectively, at September 30, 2023.

The Company’s Board of Directors approved a quarterly dividend of $0.25 per common share, payable on December 29, 2023 to shareholders of record as of December 15, 2023. The board of directors also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) September 15, 2023 to (but excluding) December 15, 2023. The dividend will be payable on December 15, 2023 to holders of record of Series A Preferred Stock as of November 30, 2023.

3 Tangible common equity to tangible assets ratio and the tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

Net Interest Income and NIM

Average Balance Sheets

The following table presents, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as the corresponding average interest rates earned and paid, all on a tax-equivalent basis.


	Quarter ended
	September 30, 2023						June 30, 2023						September 30, 2022
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:



Loans1, 2	$	10,521,966	$	180,382	6.80	%	$	10,284,873	$	170,314	6.64	%	$	9,230,738	$	118,642	5.10	%


Securities2	2,302,850		18,076		3.11		2,297,995		17,550		3.06		2,202,255		14,717		2.65
Interest-earning deposits	335,771		4,509		5.33		173,785		2,095		4.84		765,258		4,190		2.17
Total interest-earning assets	13,160,587		202,967		6.12		12,756,653		189,959		5.97		12,198,251		137,549		4.47




Noninterest-earning assets	908,273						915,332						959,870

Total assets	$	14,068,860					$	13,671,985					$	13,158,121

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	2,672,084	$	13,701	2.03	%	$	2,509,805	$	10,120	1.62	%	$	2,200,619	$	1,707	0.31	%
Money market accounts	3,079,221		26,427		3.40		2,920,079		20,499		2.82		2,791,822		6,067		0.86
Savings accounts	646,187		250		0.15		686,973		227		0.13		828,747		69		0.03
Certificates of deposit	1,519,119		14,976		3.91		1,219,500		10,526		3.46		554,987		844		0.60
Total interest-bearing deposits	7,916,611		55,354		2.77		7,336,357		41,372		2.26		6,376,175		8,687		0.54
Subordinated debentures and notes	155,769		2,466		6.28		155,632		2,431		6.27		155,225		2,313		5.91
FHLB advances	10,326		141		5.42		98,912		1,279		5.19		25,543		103		1.60
Securities sold under agreements to repurchase	146,893		969		2.61		162,606		704		1.74		198,027		123		0.25
Other borrowings	50,571		337		2.66		133,770		1,419		4.25		19,984		179		3.55
Total interest-bearing liabilities	8,280,170		59,267		2.84		7,887,277		47,205		2.40		6,774,954		11,405		0.67

Noninterest-bearing liabilities:
Demand deposits	4,005,923						4,051,456						4,778,720
Other liabilities	134,162						111,915						109,943
Total liabilities	12,420,255						12,050,648						11,663,617
Shareholders' equity	1,648,605						1,621,337						1,494,504
Total liabilities and shareholders' equity	$	14,068,860					$	13,671,985					$	13,158,121






Total net interest income			$	143,700					$	142,754					$	126,144
Net interest margin					4.33	%					4.49	%					4.10	%

1 Average balances include nonaccrual loans. Interest income includes loan fees of $3.3 million, $3.7 million, and $3.6 million for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.
2 Non-taxable income is presented on a fully tax-equivalent basis using a 25.2% tax rate. The tax-equivalent adjustments were $2.1 million, $2.1 million, and $1.9 million for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.

Net interest income for the third quarter 2023 was $141.6 million, an increase of $0.9 million, compared to the linked quarter and an increase of $17.3 million from the prior year quarter. Net interest income on a tax equivalent basis was $143.7 million, $142.8 million and $126.1 million for the current, linked and prior year quarters, respectively. The increase from the linked and prior year quarters reflects the benefit of higher market interest rates on the Company’s asset sensitive balance sheet combined with organic growth.

Interest income increased $13.0 million during the third quarter 2023 primarily due to an increase of $10.1 million in loan interest income and a $2.4 million increase in interest on cash accounts. Loan interest income has increased from continued loan growth and higher loan yields. Interest on loans benefited from a 16 basis point increase in yield and a $237.1 million increase in average loan balances, compared to the linked quarter. The average interest rate of new loan originations in the third quarter 2023 was 7.89%. Interest on cash accounts increased due to a 49 basis point increase in yield and a $162.0 million increase in average balances.

Interest expense increased $12.1 million in the third quarter 2023 primarily due to a $14.0 million increase in deposit interest expense. This increase was partially offset by a $1.1 million decrease in interest expense on other borrowings. The increase in deposit interest expense reflects a shift in the deposit mix from demand deposits to interest-bearing deposits, particularly money market accounts and certificates of deposit, as well as higher rates paid on deposits. The average cost of interest-bearing deposits was 2.77%, an increase of 51 basis points compared to the linked quarter. The increase in cost was primarily due to higher interest rates paid on commercial balances. The total cost of deposits, including noninterest-bearing demand accounts, was 1.84% during the third quarter 2023, compared to 1.46% in the linked quarter. The decrease in interest expense on other borrowings was primarily due to a decline in average borrowings that were reduced due to the increase in liquidity from the growth in core deposits.

NIM, on a tax equivalent basis, was 4.33% in the third quarter 2023, a decrease of 16 basis points from the linked quarter and an increase of 23 basis points from the prior year quarter. For the month of September 2023, the loan portfolio yield was 6.89% and the cost of total deposits was 2.0%.

Investments


	Quarter ended
	September 30, 2023				June 30, 2023				September 30, 2022
($ in thousands)	Carrying Value		Net Unrealized Loss		Carrying Value		Net Unrealized Loss		Carrying Value		Net Unrealized Loss
Available-for-sale (AFS)	$	1,487,104	$	(235,013)	$	1,550,375	$	(179,857)	$	1,466,912	$	(225,675)
Held-to-maturity (HTM)	730,655		(108,780)		723,959		(71,673)		646,393		(109,294)
Total	$	2,217,759	$	(343,793)	$	2,274,334	$	(251,530)	$	2,113,305	$	(334,969)

Investment securities totaled $2.2 billion at September 30, 2023, a decrease of $56.6 million from the linked quarter. The decrease was primarily due to a $55.2 million decline in the fair value of available-for-sale securities due to a decline in longer-term rates in the quarter. Investment purchases in the third quarter 2023 had a weighted average, tax equivalent yield of 5.60%.

The average duration of the investment portfolio was 5.6 years at September 30, 2023. The Company utilizes the investment portfolio to lengthen the overall duration of the balance sheet. The expected cash flow from pay downs, maturities and interest over the next 12 months is approximately $270 million. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities4 was 7.91% at September 30, 2023, compared to 8.25% at June 30, 2023.

4 The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Loans

The following table presents total loans for the most recent five quarters:


	Quarter ended

($ in thousands)	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
C&I	$	2,020,303		$	2,029,370		$	2,005,539		$	1,904,654		$	1,780,677
CRE investor owned	2,260,220			2,290,701			2,239,932			2,176,424			2,106,458
CRE owner occupied	1,255,885			1,208,675			1,173,985			1,174,094			1,133,467
SBA loans*	1,309,497			1,327,667			1,315,732			1,312,378			1,269,065
Sponsor finance*	888,000			879,491			677,529			635,061			650,102
Life insurance premium financing*	928,486			912,274			859,910			817,115			779,606
Tax credits*	683,580			609,137			547,513			559,605			507,681
SBA PPP loans	4,940			5,173			5,438			7,272			13,165
Residential real estate	364,618			354,588			348,726			379,924			381,634
Construction and land development	639,555			599,375			590,509			534,753			513,452
Other	261,736			296,172			247,105			235,858			219,680
Total loans	$	10,616,820		$	10,512,623		$	10,011,918		$	9,737,138		$	9,354,987

Total loan yield	6.80		%	6.64		%	6.33		%	5.87		%	5.10		%

Variable interest rate loans to total loans	61		%	62		%	63		%	63		%	63		%


*Specialty loan category

Loans totaled $10.6 billion at September 30, 2023, increasing $104.2 million, compared to the linked quarter. The increase was primarily in tax credit and owner-occupied CRE loans. Loan sales of $33.3 million mitigated growth in the SBA category during the current quarter. Total loan growth in the third quarter was moderated by net line paydowns of $212.8 million. Average line utilization was approximately 41% for the third quarter 2023, compared to 45% and 43% for the linked and prior year quarters, respectively.

Asset Quality

The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:


	Quarter ended
($ in thousands)	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Nonperforming loans*	$	48,932		$	16,112		$	11,972		$	9,981		$	18,184
Other	6,933			—			250			269			269
Nonperforming assets*	$	55,865		$	16,112		$	12,222		$	10,250		$	18,453

Nonperforming loans to total loans	0.46		%	0.15		%	0.12		%	0.10		%	0.19		%
Nonperforming assets to total assets	0.40		%	0.12		%	0.09		%	0.08		%	0.14		%
Allowance for credit losses to total loans	1.34		%	1.34		%	1.38		%	1.41		%	1.50		%
Net charge-offs (recoveries)	$	6,856		$	2,973		$	(264)		$	2,075		$	478

*Guaranteed balances excluded	$	5,974		$	6,666		$	6,835		$	6,708		$	6,532

Nonperforming assets increased $39.8 million during the third quarter 2023 and increased $37.4 million from the prior year quarter. Nonperforming loans increased $32.8 million and $30.7 million from the linked and prior year quarters, respectively. OREO and repossessed assets increased $6.9 million and $6.7 million from the linked and prior year quarters, respectively. The increase in nonperforming loans in the third quarter 2023 was primarily due to three relationships in the C&I and CRE categories of $1.8 million and $31.0 million, respectively. The increase in OREO and repossessed assets in the third quarter 2023 represented one relationship that had a related charge-off of

$4.7 million in the current period. Annualized net charge-offs totaled 26 basis points of average loans in the third quarter 2023, compared to 12 basis points and two basis points in the linked and prior year quarters, respectively.

The provision for credit losses totaled $8.0 million in the third quarter 2023, compared to $6.3 million and $0.7 million in the linked and prior year quarters, respectively. The provision for credit losses in the third quarter 2023 was primarily related to net charge-offs, an increase in nonperforming loans, and loan growth, partially offset by an improvement in forecasted economic factors. The allowance for credit losses to total loans was 1.34% at both September 30, and June 30, 2023 compared to 1.50% in the prior year quarter.

Deposits

The following table presents deposits broken out by type for the most recent five quarters:


	Quarter ended

($ in thousands)	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Noninterest-bearing demand accounts	$	3,852,486		$	3,880,561		$	4,192,523		$	4,642,732		$	4,642,539
Interest-bearing demand accounts	2,749,598			2,629,339			2,395,901			2,256,295			2,270,898
Money market and savings accounts	3,837,145			3,577,856			3,672,539			3,399,415			3,617,249
Brokered certificates of deposit	695,551			893,808			369,505			118,968			129,039
Other certificates of deposit	775,127			638,296			524,168			411,740			397,869
Total deposit portfolio	$	11,909,907		$	11,619,860		$	11,154,636		$	10,829,150		$	11,057,594

Noninterest-bearing deposits to total deposits	32.3		%	33.4		%	37.6		%	42.9		%	42.0		%
Total costs of deposits	1.84		%	1.46		%	0.92		%	0.53		%	0.31		%

Total deposits at September 30, 2023 were $11.9 billion, an increase of $290.0 million and $852.3 million from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, deposits increased $488.0 million and $285.8 million, from the linked and prior year quarters, respectively. The mix of the deposit portfolio continued the shift from noninterest bearing demand deposits to higher cost categories that began in the first quarter 2023. Competitive pricing pressures and the Federal Reserve’s monetary policy actions have continued to pressure industry-wide deposit flows. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.1 billion at September 30, 2023, compared to $926.6 million at June 30, 2023.

Total estimated insured deposits, which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled $8.5 billion, or 71% of total deposits, at the end of September 30, 2023, compared to $8.3 billion, or 72% of total deposits, in the linked quarter.

Noninterest Income

The following table presents a comparative summary of the major components of noninterest income for the periods indicated:


	Linked quarter comparison								Prior year comparison
	Quarter ended								Quarter ended
($ in thousands)	September 30, 2023		June 30, 2023		Increase (decrease)				September 30, 2022		Increase (decrease)
Deposit service charges	4,187		3,910		$	277	7	%	4,951		$	(764)	(15)	%
Wealth management revenue	2,614		2,472		142		6	%	2,432		182		7	%
Card services revenue	2,560		2,464		96		4	%	2,652		(92)		(3)	%
Tax credit income (loss)	(2,673)		368		(3,041)		(826)	%	(3,625)		952		26	%

Other income	5,397		5,076		321		6	%	3,044		2,353		77	%

Total noninterest income	$	12,085	$	14,290	$	(2,205)	(15)	%	$	9,454	$	2,631	28	%

Total noninterest income was $12.1 million for the third quarter 2023, a decrease of $2.2 million from the linked quarter and an increase of $2.6 million from the prior year quarter. The decrease from the linked quarter was primarily due to a decrease in tax credit income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The discount rate used in the fair value determination is the 10-year SOFR swap rate, which increased 70 basis points in the third quarter. The increase from the prior year quarter was primarily due to Other income, as further discussed below.

The following table presents a comparative summary of the major components of other income for the periods indicated:


	Linked quarter comparison								Prior year comparison
	Quarter ended								Quarter ended
($ in thousands)	September 30, 2023		June 30, 2023		Increase (decrease)				September 30, 2022		Increase (decrease)
BOLI	$	822	$	797	$	25	3	%	$	769	$	53	7	%
Community development investments	338		2,077		(1,739)		(84)	%	170		168		99	%
Private equity fund distribution	181		371		(190)		(51)	%	64		117		183	%
Servicing fees	701		407		294		72	%	655		46		7	%
Swap fees	54		173		(119)		(69)	%	166		(112)		(67)	%
Gain on SBA loan sales	1,514		—		1,514		NM		—		1,514		NM
Miscellaneous income	1,787		1,251		536		43	%	1,220		567		46	%

Total other income	$	5,397	$	5,076	$	321	6	%	$	3,044	$	2,353	77	%


NM - Not meaningful

Community development and private equity distributions included in other income are not consistent sources of income and fluctuate based on distributions from the underlying funds. Servicing fee income may also fluctuate based on prepayment experience and changes to the discount rate used in the valuation of the servicing rights. Swap fee income is generated from customer hedging activities and varies based on customer transaction volume. The decrease in community development income of $1.7 million compared to the linked quarter was partially offset by a $1.5 million gain on the sale of SBA loans in the third quarter 2023. The $2.4 million increase in Other income from the prior year quarter was primarily due to the gain on sale of SBA loans.

Noninterest Expense

The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:


	Linked quarter comparison								Prior year comparison
	Quarter ended								Quarter ended
($ in thousands)	September 30, 2023		June 30, 2023		Increase (decrease)				September 30, 2022		Increase (decrease)
Employee compensation and benefits	$	40,771	$	41,641	$	(870)	(2)	%	$	36,999	$	3,772	10	%
Occupancy	4,198		3,954		244		6	%	4,497		(299)		(7)	%

Deposit costs	20,987		16,980		4,007		24	%	7,661		13,326		174	%


Other expense	22,688		23,381		(693)		(3)	%	19,686		3,002		15	%

Total noninterest expense	$	88,644	$	85,956	$	2,688	3	%	$	68,843	$	19,801	29	%

Employee compensation and benefits decreased $0.9 million from the linked quarter due to a decrease in benefit costs, primarily due to lower claims on self-insured medical policies. Deposit costs relate to certain specialized

deposit businesses that are impacted by higher interest rates as well as increasing average balances. Deposit costs increased $4.0 million from the linked quarter primarily due to higher average balances and an increase in expenses related to the earnings credit earned on these accounts.

The increase in noninterest expense of $19.8 million from the prior year quarter was primarily an increase in the associate base, merit increases throughout 2022 and 2023, and an increase in variable deposit costs.

For the third quarter 2023, the Company’s core efficiency ratio5 was 56.2%, compared to 54.0% for the linked quarter and 49.8% for the prior year quarter.

Income Taxes

The Company’s effective tax rate was 22% for each of the current, linked and prior year quarters.

Capital

The following table presents total equity and various EFSC capital ratios for the most recent five quarters:


	Quarter ended
($ in thousands)	September 30, 2023*			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Shareholders’ equity	$	1,611,880		$	1,618,233		$	1,592,820		$	1,522,263		$	1,446,218
Total risk-based capital to risk-weighted assets	14.1		%	14.1		%	14.3		%	14.2		%	14.2		%
Tier 1 capital to risk weighted assets	12.6		%	12.5		%	12.6		%	12.6		%	12.6		%
Common equity tier 1 capital to risk-weighted assets	11.2		%	11.1		%	11.2		%	11.1		%	11.0		%
Leverage ratio	10.9		%	11.0		%	11.1		%	10.9		%	10.4		%
Tangible common equity to tangible assets	8.51		%	8.65		%	8.81		%	8.43		%	7.86		%

*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Total equity was $1.6 billion at September 30, 2023, a decrease of $6.4 million from the linked quarter. The decrease was primarily due to a $44.4 million decrease in accumulated other comprehensive income, primarily due to a net fair value decrease in the Company’s fixed-rate, available-for-sale investment portfolio, and common and preferred stock dividends of $10.3 million. The decrease was partially offset by current period net income of $44.7 million. The Company’s tangible common book value per share was $31.06 at September 30, 2023, compared to $31.23 and $26.62 in the linked and prior year quarters, respectively.

The Company’s regulatory capital ratios continue to exceed the “well-capitalized” regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Use of Non-GAAP Financial Measures

The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, PPNR, ROATCE, PPNR return on average assets (“PPNR ROAA”), core efficiency ratio, the tangible common equity ratio, and tangible book value per common share, in this release that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

5 Core efficiency ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

The Company considers its tangible common equity, PPNR, ROATCE, PPNR ROAA, core efficiency ratio, the tangible common equity ratio, and tangible book value per common share, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as merger-related expenses, facilities charges, and the gain or loss on sale of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.

The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.

Conference Call and Webcast Information

The Company will host a conference call and webcast at 10:00 a.m. Central Time on Tuesday, October 24, 2023. During the call, management will review the third quarter 2023 results and related matters. This press release as well as a related slide presentation will be accessible on the Company’s website at www.enterprisebank.com under “Investor Relations” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-888-330-2413 (Conference ID 70045, press # to reach an operator). We encourage participants to pre-register for the conference call using the following link:

https://bit.ly/EFSC3Q2023EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.

About Enterprise Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $14.0 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.

Enterprise Financial Services Corp’s common stock is traded on the Nasdaq Stock Market under the symbol “EFSC.” Please visit our website at www.enterprisebank.com to see our regularly posted material information.

Forward-looking Statements

Readers should note that, in addition to the historical information contained herein, this press release contains “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, shareholder value creation and the impact of acquisitions.

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, as well as credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), U.S. fiscal debt, budget and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase out of LIBOR, natural disasters, terrorist activities, war and geopolitical matters (including the war in Israel and potential for a broader regional conflict and the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, including the COVID-19 pandemic, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

For any forward-looking statements made in this press release or in any documents, EFSC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, EFSC disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made.

For more information contact

Investor Relations: Keene Turner, Senior Executive Vice President and CFO (314) 512-7233

Media: Steve Richardson, Senior Vice President (314) 995-5695

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited)


	Quarter ended															Nine months ended
(in thousands, except per share data)	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Sep 30, 2023			Sep 30, 2022
EARNINGS SUMMARY
Net interest income	$	141,639		$	140,692		$	139,529		$	138,835		$	124,290		$	421,860		$	335,068
Provision (benefit) for credit losses	8,030			6,339			4,183			2,123			676			18,552			(2,734)
Noninterest income	12,085			14,290			16,898			16,873			9,454			43,273			42,289
Noninterest expense	88,644			85,956			80,983			77,149			68,843			255,583			197,067
Income before income tax expense	57,050			62,687			71,261			76,436			64,225			190,998			183,024
Income tax expense	12,385			13,560			15,523			16,435			14,025			41,468			39,982
Net income	44,665			49,127			55,738			60,001			50,200			149,530			143,042
Preferred stock dividends	938			937			938			937			937			2,813			3,104
Net income available to common shareholders	$	43,727		$	48,190		$	54,800		$	59,064		$	49,263		$	146,717		$	139,938

Diluted earnings per common share	$	1.17		$	1.29		$	1.46		$	1.58		$	1.32		$	3.91		$	3.73
Return on average assets	1.26		%	1.44		%	1.72		%	1.83		%	1.51		%	1.47		%	1.42		%
Return on average common equity	11.00		%	12.48		%	14.85		%	16.52		%	13.74		%	12.73		%	13.09		%
ROATCE1	14.49		%	16.53		%	19.93		%	22.62		%	18.82		%	16.90		%	17.92		%
Net interest margin (tax equivalent)	4.33		%	4.49		%	4.71		%	4.66		%	4.10		%	4.50		%	3.64		%

Efficiency ratio	57.66		%	55.46		%	51.77		%	49.55		%	51.47		%	54.95		%	52.22		%
Core efficiency ratio1	56.18		%	54.04		%	50.47		%	48.10		%	49.80		%	53.55		%	50.46		%



Assets	$	14,025,042		$	13,871,154		$	13,325,982		$	13,054,172		$	12,994,787
Average assets	$	14,068,860		$	13,671,985		$	13,131,195		$	12,986,568		$	13,158,121		$	13,627,448		$	13,431,863


Period end common shares outstanding	37,385			37,359			37,311			37,253			37,223
Dividends per common share	$	0.25		$	0.25		$	0.25		$	0.24		$	0.23		$	0.75		$	0.66
Tangible book value per common share	$	31.06		$	31.23		$	30.55		$	28.67		$	26.62
Tangible common equity to tangible assets1	8.51		%	8.65		%	8.81		%	8.43		%	7.86		%
Total risk-based capital to risk-weighted assets2	14.1		%	14.1		%	14.3		%	14.2		%	14.2		%

1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.
2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)


	Quarter ended										Nine months ended
($ in thousands, except per share data)	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Sep 30, 2023		Sep 30, 2022
INCOME STATEMENTS
NET INTEREST INCOME
Interest income	$	200,906	$	187,897	$	169,033	$	156,737	$	135,695	$	557,836	$	358,345
Interest expense	59,267		47,205		29,504		17,902		11,405		135,976		23,277
Net interest income	141,639		140,692		139,529		138,835		124,290		421,860		335,068
Provision (benefit) for credit losses	8,030		6,339		4,183		2,123		676		18,552		(2,734)
Net interest income after provision (benefit) for credit losses	133,609		134,353		135,346		136,712		123,614		403,308		337,802

NONINTEREST INCOME
Deposit service charges	4,187		3,910		4,128		4,463		4,951		12,225		13,863
Wealth management revenue	2,614		2,472		2,516		2,423		2,432		7,602		7,587
Card services revenue	2,560		2,464		2,338		2,345		2,652		7,362		9,206
Tax credit income (loss)	(2,673)		368		1,813		2,389		(3,625)		(492)		169




Other income	5,397		5,076		6,103		5,253		3,044		16,576		11,464
Total noninterest income	12,085		14,290		16,898		16,873		9,454		43,273		42,289

NONINTEREST EXPENSE
Employee compensation and benefits	40,771		41,641		42,503		38,175		36,999		124,915		108,854
Occupancy	4,198		3,954		4,061		4,248		4,497		12,213		13,392


Deposit costs	20,987		16,980		12,720		13,256		7,661		50,688		17,826


Other expense	22,688		23,381		21,699		21,470		19,686		67,767		56,995
Total noninterest expense	88,644		85,956		80,983		77,149		68,843		255,583		197,067

Income before income tax expense	57,050		62,687		71,261		76,436		64,225		190,998		183,024
Income tax expense	12,385		13,560		15,523		16,435		14,025		41,468		39,982
Net income	$	44,665	$	49,127	$	55,738	$	60,001	$	50,200	$	149,530	$	143,042
Preferred stock dividends	938		937		938		937		937		2,813		3,104
Net income available to common shareholders	$	43,727	$	48,190	$	54,800	$	59,064	$	49,263	$	146,717	$	139,938

Basic earnings per common share	$	1.17	$	1.29	$	1.47	$	1.59	$	1.32	$	3.93	$	3.74
Diluted earnings per common share	$	1.17	$	1.29	$	1.46	$	1.58	$	1.32	$	3.91	$	3.73

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)


	Quarter ended
($ in thousands)	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022
BALANCE SHEET

ASSETS
Cash and due from banks	$	190,806	$	202,702	$	210,813	$	229,580	$	264,078
Interest-earning deposits	184,245		125,328		81,241		69,808		489,825
Securities and other investments	2,279,578		2,340,821		2,338,746		2,309,512		2,171,942
Loans held for sale	212		551		261		1,228		785

Loans	10,616,820		10,512,623		10,011,918		9,737,138		9,354,987
Allowance for credit losses	(142,133)		(141,319)		(138,295)		(136,932)		(140,572)
Total loans, net	10,474,687		10,371,304		9,873,623		9,600,206		9,214,415


Fixed assets, net	41,268		41,988		42,340		42,985		43,882


Goodwill	365,164		365,164		365,164		365,164		365,164
Intangible assets, net	13,425		14,544		15,680		16,919		18,217
Other assets	475,657		408,752		398,114		418,770		426,479
Total assets	$	14,025,042	$	13,871,154	$	13,325,982	$	13,054,172	$	12,994,787

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	3,852,486	$	3,880,561	$	4,192,523	$	4,642,732	$	4,642,539
Interest-bearing deposits	8,057,421		7,739,299		6,962,113		6,186,418		6,415,055
Total deposits	11,909,907		11,619,860		11,154,636		10,829,150		11,057,594
Subordinated debentures and notes	155,844		155,706		155,569		155,433		155,298
FHLB advances	—		150,000		100,000		100,000		—

Other borrowings	182,372		199,390		213,489		324,119		197,422
Other liabilities	165,039		127,965		109,468		123,207		138,255
Total liabilities	12,413,162		12,252,921		11,733,162		11,531,909		11,548,569
Shareholders’ equity:
Preferred stock	71,988		71,988		71,988		71,988		71,988
Common stock	374		374		373		373		372

Additional paid-in capital	992,044		988,355		984,281		982,660		979,543
Retained earnings	715,303		680,981		642,153		597,574		547,506
Accumulated other comprehensive loss	(167,829)		(123,465)		(105,975)		(130,332)		(153,191)
Total shareholders’ equity	1,611,880		1,618,233		1,592,820		1,522,263		1,446,218
Total liabilities and shareholders’ equity	$	14,025,042	$	13,871,154	$	13,325,982	$	13,054,172	$	12,994,787

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)



	Nine months ended
	September 30, 2023						September 30, 2022
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
AVERAGE BALANCE SHEET

ASSETS
Interest-earning assets:



Loans1, 2	$	10,203,291	$	503,458	6.60	%	$	9,116,072	$	317,271	4.65	%


Securities2	2,296,485		52,743		3.07		2,065,800		38,631		2.50
Interest-earning deposits	206,110		7,799		5.06		1,312,442		7,502		0.76
Total interest-earning assets	12,705,886		564,000		5.93		12,494,314		363,404		3.89




Noninterest-earning assets	921,562						937,549

Total assets	$	13,627,448					$	13,431,863

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing demand accounts	$	2,462,988	$	29,728	1.61	%	$	2,344,007	$	2,902	0.17	%
Money market accounts	2,942,970		62,397		2.83		2,810,278		9,797		0.47
Savings accounts	688,157		707		0.14		833,721		205		0.03
Certificates of deposit	1,139,489		28,555		3.35		584,213		2,492		0.57
Total interest-bearing deposits	7,233,604		121,387		2.24		6,572,219		15,396		0.31
Subordinated debentures and notes	155,633		7,306		6.28		155,093		6,790		5.85
FHLB advances	73,020		2,752		5.04		41,758		495		1.58
Securities sold under agreements to repurchase	174,783		2,422		1.85		220,703		224		0.14
Other borrowings	79,396		2,109		3.55		21,402		372		2.32
Total interest-bearing liabilities	7,716,436		135,976		2.36		7,011,175		23,277		0.44

Noninterest-bearing liabilities:
Demand deposits	4,178,038						4,819,718
Other liabilities	119,883						99,458
Total liabilities	12,014,357						11,930,351
Shareholders' equity	1,613,091						1,501,512
Total liabilities and shareholders' equity	$	13,627,448					$	13,431,863






Total net interest income			$	428,024					$	340,127
Net interest margin					4.50	%					3.64	%

1 Average balances include nonaccrual loans. Interest income includes loan fees of $10.7 million and $13.0 million for the nine months ended September 30, 2023 and September 30, 2022, respectively.
2 Non-taxable income is presented on a fully tax-equivalent basis using a 25.2% tax rate. The tax-equivalent adjustments were $6.2 million and $5.1 million for the nine months ended September 30, 2023 and 2022, respectively.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)


	Quarter ended
($ in thousands)	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022
LOAN PORTFOLIO
Commercial and industrial	$	4,448,535		$	4,360,862		$	4,032,189		$	3,859,882		$	3,709,893
Commercial real estate	4,794,355			4,802,293			4,699,302			4,628,371			4,438,647
Construction real estate	723,796			671,573			663,264			611,565			583,649
Residential real estate	376,120			368,867			364,059			395,537			397,450
Other	274,014			309,028			253,104			241,783			225,348
Total loans	$	10,616,820		$	10,512,623		$	10,011,918		$	9,737,138		$	9,354,987

DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts	$	3,852,486		$	3,880,561		$	4,192,523		$	4,642,732		$	4,642,539
Interest-bearing demand accounts	2,749,598			2,629,339			2,395,901			2,256,295			2,270,898
Money market and savings accounts	3,837,145			3,577,856			3,672,539			3,399,415			3,617,249
Brokered certificates of deposit	695,551			893,808			369,505			118,968			129,039
Other certificates of deposit	775,127			638,296			524,168			411,740			397,869
Total deposits	$	11,909,907		$	11,619,860		$	11,154,636		$	10,829,150		$	11,057,594

AVERAGE BALANCES


Loans	$	10,521,966		$	10,284,873		$	9,795,045		$	9,423,984		$	9,230,738

Securities	2,302,850			2,297,995			2,288,451			2,204,211			2,202,255
Interest-earning assets	13,160,587			12,756,653			12,189,750			11,995,295			12,198,251
Assets	14,068,860			13,671,985			13,131,195			12,986,568			13,158,121
Deposits	11,922,534			11,387,813			10,913,489			11,002,614			11,154,895
Shareholders’ equity	1,648,605			1,621,337			1,568,451			1,490,592			1,494,504
Tangible common equity1	1,197,486			1,169,091			1,115,052			1,035,896			1,038,495

YIELDS (tax equivalent)


Loans	6.80		%	6.64		%	6.33		%	5.87		%	5.10		%
Securities	3.11			3.06			3.03			2.91			2.65
Interest-earning assets	6.12			5.97			5.69			5.25			4.47
Interest-bearing deposits	2.77			2.26			1.56			0.94			0.54
Deposits	1.84			1.46			0.92			0.53			0.31
Subordinated debentures and notes	6.28			6.27			6.28			6.07			5.91
FHLB advances and other borrowed funds	2.76			3.45			2.60			1.39			0.66
Interest-bearing liabilities	2.84			2.40			1.72			1.07			0.67
Net interest margin	4.33			4.49			4.71			4.66			4.10

1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)


	Quarter ended
(in thousands, except per share data)	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022
ASSET QUALITY
Net charge-offs (recoveries)	$	6,856		$	2,973		$	(264)		$	2,075		$	478
Nonperforming loans	48,932			16,112			11,972			9,981			18,184
Classified assets	184,393			108,065			110,384			99,122			98,078
Nonperforming loans to total loans	0.46		%	0.15		%	0.12		%	0.10		%	0.19		%
Nonperforming assets to total assets	0.40		%	0.12		%	0.09		%	0.08		%	0.14		%
Allowance for credit losses to total loans	1.34		%	1.34		%	1.38		%	1.41		%	1.50		%
Allowance for credit losses to nonperforming loans	290.5		%	877.1		%	1,155.2		%	1,371.9		%	773.1		%
Net charge-offs (recoveries) to average loans -annualized	0.26		%	0.12		%	(0.01)		%	0.09		%	0.02		%

WEALTH MANAGEMENT
Trust assets under management	$	2,129,408		$	1,992,563		$	1,956,146		$	1,885,394		$	1,691,230


MARKET DATA
Book value per common share	$	41.19		$	41.39		$	40.76		$	38.93		$	36.92
Tangible book value per common share1	$	31.06		$	31.23		$	30.55		$	28.67		$	26.62
Market value per share	$	37.50		$	39.10		$	44.59		$	48.96		$	44.04
Period end common shares outstanding	37,385			37,359			37,311			37,253			37,223
Average basic common shares	37,405			37,347			37,305			37,257			37,241
Average diluted common shares	37,520			37,495			37,487			37,415			37,347

CAPITAL
Total risk-based capital to risk-weighted assets2	14.1		%	14.1		%	14.3		%	14.2		%	14.2		%
Tier 1 capital to risk-weighted assets2	12.6		%	12.5		%	12.6		%	12.6		%	12.6		%
Common equity tier 1 capital to risk-weighted assets2	11.2		%	11.1		%	11.2		%	11.1		%	11.0		%
Tangible common equity to tangible assets1	8.51		%	8.65		%	8.81		%	8.43		%	7.86		%

1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.
2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


	Quarter ended															Nine months ended
($ in thousands)	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Sep 30, 2023			Sep 30, 2022
CORE EFFICIENCY RATIO
Net interest income (GAAP)	$	141,639		$	140,692		$	139,529		$	138,835		$	124,290		$	421,860		$	335,068
Tax-equivalent adjustment	2,061			2,062			2,041			1,983			1,854			6,164			5,059
Noninterest income (GAAP)	12,085			14,290			16,898			16,873			9,454			43,273			42,289
Less gain on sale of investment securities	—			—			381			—			—			381			—
Less gain (loss) on sale of other real estate owned	—			97			90			—			(22)			187			(93)
Core revenue (non-GAAP)	155,785			156,947			157,997			157,691			135,620			470,729			382,509

Noninterest expense (GAAP)	88,644			85,956			80,983			77,149			68,843			255,583			197,067
Less amortization on intangibles	1,118			1,136			1,239			1,299			1,310			3,493			4,068


Core noninterest expense (non-GAAP)	87,526			84,820			79,744			75,850			67,533			252,090			192,999

Core efficiency ratio (non-GAAP)	56.18		%	54.04		%	50.47		%	48.10		%	49.80		%	53.55		%	50.46		%


	Quarter ended
($ in thousands)	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022




















TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Shareholders’ equity	$	1,611,880		$	1,618,233		$	1,592,820		$	1,522,263		$	1,446,218
Less preferred stock	71,988			71,988			71,988			71,988			71,988
Less goodwill	365,164			365,164			365,164			365,164			365,164
Less intangible assets	13,425			14,544			15,680			16,919			18,217
Tangible common equity	$	1,161,303		$	1,166,537		$	1,139,988		$	1,068,192		$	990,849
Less net unrealized losses on HTM portfolio, after tax of 25.2%	81,367			53,611			48,630			61,435			81,752
Tangible common equity adjusted for unrealized losses on HTM securities	$	1,079,936		$	1,112,926		$	1,091,358		$	1,006,757		$	909,097

Common shares outstanding	37,385			37,359			37,311			37,253			37,223
Tangible book value per share	$	31.06		$	31.23		$	30.55		$	28.67		$	26.62

Total assets	$	14,025,042		$	13,871,154		$	13,325,982		$	13,054,172		$	12,994,787
Less goodwill	365,164			365,164			365,164			365,164			365,164
Less intangible assets	13,425			14,544			15,680			16,919			18,217
Tangible assets	$	13,646,453		$	13,491,446		$	12,945,138		$	12,672,089		$	12,611,406

Tangible common equity to tangible assets	8.51		%	8.65		%	8.81		%	8.43		%	7.86		%
Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities	7.91		%	8.25		%	8.43		%	7.94		%	7.21		%


	Quarter Ended															Nine months ended
($ in thousands)	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Sep 30, 2023			Sep 30, 2022
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE)
Average shareholder’s equity	$	1,648,605		$	1,621,337		$	1,568,451		$	1,490,592		$	1,494,504		$	1,613,091		$	1,501,512
Less average preferred stock	71,988			71,988			71,988			71,988			71,988			71,988			71,988
Less average goodwill	365,164			365,164			365,164			365,164			365,164			365,164			365,164
Less average intangible assets	13,967			15,094			16,247			17,544			18,857			15,094			20,181
Average tangible common equity	$	1,197,486		$	1,169,091		$	1,115,052		$	1,035,896		$	1,038,495		$	1,160,845		$	1,044,179

Net income available to common shareholders (GAAP)	$	43,727		$	48,190		$	54,800		$	59,064		$	49,263		$	146,717		$	139,938
ROATCE	14.49		%	16.53		%	19.93		%	22.62		%	18.82		%	16.90		%	17.92		%


	Quarter ended															Nine months ended
($ in thousands)	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Sep 30, 2023			Sep 30, 2022
CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)
Net interest income	$	141,639		$	140,692		$	139,529		$	138,835		$	124,290		$	421,860		$	335,068
Noninterest income	12,085			14,290			16,898			16,873			9,454			43,273			42,289
Less gain on sale of investment securities	—			—			381			—			—			381			—
Less gain (loss) on sale of other real estate owned	—			97			90			—			(22)			187			(93)
Less noninterest expense	88,644			85,956			80,983			77,149			68,843			255,583			197,067


PPNR	$	65,080		$	68,929		$	74,973		$	78,559		$	64,923		$	208,982		$	180,383

Average assets	$	14,068,860		$	13,671,985		$	13,131,195		$	12,986,568		$	13,158,121		$	13,627,448		$	13,431,863
ROAA - GAAP	1.26		%	1.44		%	1.72		%	1.83		%	1.51		%	1.47		%	1.42		%
PPNR ROAA	1.84		%	2.02		%	2.32		%	2.40		%	1.96		%	2.05		%	1.80		%


	Quarter ended
($ in thousands)	Sep 30, 2023		Jun 30, 2023
CALCULATION OF ESTIMATED INSURED DEPOSITS
Estimated uninsured deposits per Call Report	$	3,886,299	$	3,821,266
Collateralized/affiliate deposits	(455,553)		(508,100)
Accrued interest on deposits	(6,231)		(5,052)
Adjusted uninsured/uncollateralized deposits	3,424,515		3,308,114
Estimated insured/collateralized deposits	8,485,392		8,311,746
Total deposits	$	11,909,907	$	11,619,860

2023 Third Quarter Earnings Webcast Enterprise Financial Services Corp Exhibit 99.2

Forward-Looking Statements Some of the information in this report may contain “forward-looking statements” within the meaning of and intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include projections based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, shareholder value creation and the impact of acquisitions. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, as well as credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), U.S. fiscal debt, budget and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase out of LIBOR, natural disasters, terrorist activities, war and geopolitical matters (including the war in Israel and potential for a broader regional conflict and the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, including the COVID-19 pandemic, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results. For any forward-looking statements made in this press release or in any documents, EFSC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only, are not forecasts and may not reflect actual results. Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, EFSC disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made. 2

Financial Highlights - 3Q23* Capital • Tangible Common Equity/Tangible Assets** 8.51%, compared to 8.65% • Tangible Book Value Per Common Share $31.06, compared to $31.23 • CET1 Ratio 11.2%, compared to 11.1% • Quarterly common stock dividend of $0.25 per share in third quarter 2023 • Quarterly preferred stock dividend of $12.50 per share ($0.3125 per depositary share) • Net Income $44.7 million, down $4.5 million; EPS $1.17 • Net Interest Income $141.6 million, up $0.9 million; NIM 4.33% • PPNR** $65.1 million, down $3.8 million • ROAA 1.26%, compared to 1.44%; PPNR ROAA** 1.84%, compared to 2.02% • ROATCE** 14.49%, compared to 16.53% Earnings *Comparisons noted below are to the linked quarter unless otherwise noted. **A Non-GAAP Measure, Refer to Appendix for Reconciliation. 3

Financial Highlights, continued - 3Q23* *Comparisons noted below are to the linked quarter unless otherwise noted. ** Excludes insured accounts, collateralized accounts, accounts that qualify for pass-through insurance, reciprocal accounts, and affiliated accounts. Loans & Deposits • Loans $10.6 billion, up $104.2 million • Loan/Deposit Ratio 89% • Deposits $11.9 billion, up $290.0 million • Estimated uninsured deposits of $3.4 billion,** or 29% of total deposits • Noninterest-bearing Deposits/Total Deposits 32% Asset Quality • Nonperforming Loans/Loans 0.46% • Nonperforming Assets/Assets 0.40% • Allowance Coverage Ratio 1.34%; 1.47% adjusted for guaranteed loans 4

Areas of Focus Organic Loan and Deposit Growth • Continue Funding Loan Growth with Customer Deposits • Build Franchise Value by Expanding Existing and Acquiring New Relationships Disciplined Loan and Deposit Pricing Maintain Strong Asset Quality Maintain a Strong Balance Sheet Focus on Long-term Earnings Trajectory 5

$9,355 $9,737 $10,012 $10,513 $10,617 3Q22 4Q22 1Q23 2Q23 3Q23 In Millions 13% Total Loan Grow th Loan Trends 6

Loan Details - LTM 3Q23 3Q22 LTM Change C&I $ 2,020 $ 1,781 $ 239 CRE Investor Owned 2,260 2,106 154 CRE Owner Occupied 1,256 1,133 123 SBA loans* 1,309 1,269 40 Sponsor Finance* 888 650 238 Life Insurance Premium Financing* 928 780 148 Tax Credits* 684 508 176 Residential Real Estate 365 382 (17) Construction and Land Development 640 513 127 Other 267 233 34 Total Loans $ 10,617 $ 9,355 $ 1,262 *Specialty loan category. In Millions 7

Loan Details - QTR 3Q23 2Q23 QTR Change C&I $ 2,020 $ 2,029 $ (9) CRE Investor Owned 2,260 2,291 (31) CRE Owner Occupied 1,256 1,209 47 SBA loans* 1,309 1,328 (19) Sponsor Finance* 888 880 8 Life Insurance Premium Financing* 928 912 16 Tax Credits* 684 609 75 Residential Real Estate 365 355 10 Construction and Land Development 640 599 41 Other 267 301 (34) Total Loans $ 10,617 $ 10,513 $ 104 *Specialty loan category. In Millions 8

Loans By Region Specialty Lending $3,241 $3,734 $3,871 3Q22 2Q23 3Q23 In Millions Midwest $3,115 $3,320 $3,260 3Q22 2Q23 3Q23 Southwest $1,161 $1,415 $1,464 3Q22 2Q23 3Q23 Note: Excludes PPP and Other loans; Region Components: Midwest (St. Louis & Kansas City), Southwest (AZ, NM, Las Vegas, TX), West (Southern California) West $1,605 $1,743 $1,755 3Q22 2Q23 3Q23 9

Deposit Details - LTM 3Q23 3Q22 LTM Change Noninterest-bearing demand accounts $ 3,852 $ 4,643 $ (791) Interest-bearing demand accounts 2,750 2,271 479 Money market accounts 3,211 2,793 418 Savings accounts 626 824 (198) Certificates of deposit: Brokered 696 129 567 Other 775 398 377 Total Deposits $ 11,910 $ 11,058 $ 852 Specialty Deposits (included in total deposits) $ 3,164 $ 2,422 $ 742 In Millions 10

Deposit Details - QTR 3Q23 2Q23 QTR Change Noninterest-bearing demand accounts $ 3,852 $ 3,881 $ (29) Interest-bearing demand accounts 2,750 2,629 121 Money market accounts 3,211 2,913 298 Savings accounts 626 665 (39) Certificates of deposit: Brokered 696 894 (198) Other 775 638 137 Total Deposits $ 11,910 $ 11,620 $ 290 Specialty Deposits (included in total deposits) $ 3,164 $ 2,861 $ 303 In Millions * * Total deposits excluding specialty and brokered CDs increased $185 million in 3Q23. 11

Deposits By Region Specialty Deposits $2,422 $2,861 $3,164 3Q22 2Q23 3Q23 In Millions Midwest* $5,221 $5,640 $5,627 3Q22 2Q23 3Q23 Southwest $1,827 $1,811 $1,802 3Q22 2Q23 3Q23 West* $1,588 $1,308 $1,317 3Q22 2Q23 3Q23 Note: Region Components: Midwest (St. Louis & Kansas City), Southwest (AZ, NM, Las Vegas, TX), West (Southern California) *Includes brokered balances 12

Specialty Deposits 35.6%26.2% 19.6% 18.6% Community Associations $1.1 billion in deposit accounts specifically designed to serve the needs of community associations. Property Management $829 million in deposits. Specializing in the compliance of Property Management Trust Accounts. Third-Party Escrow $620 million in deposits. Growing product line providing independent escrow services. Trust Services $75 million in deposit accounts. Providing services to nondepository trust companies. Specialty deposits of $3.2 billion represent 27% of total deposits. Includes high composition of noninterest- bearing deposits with a low cost of funds. Other $589 million in deposit accounts primarily related to Sponsor Finance and Life Insurance Premium Finance loans. 3Q22 4Q22 1Q23 2Q23 3Q23 Community Assoc Property Mgmt Third-Party Escrow Other $— $500 $1,000 In Millions 13

34% 35% 30% 47% 33% 14% 4% 7% 29% 21% 19% 21% 3% Core Funding Mix Commercial Business Banking Consumer In Millions $2,941$1,254$3,612 1At September 30, 2023 2Excludes insured accounts, collateralized accounts, accounts that qualify for pass-through insurance, reciprocal accounts, and affiliated accounts. Note: Brokered deposits: 3Q23 $0.9 billion; 3.56% cost of funds Specialty $3,164 58% 7% 34%3Q23 Net New/Closed Deposit Accounts COMMERCIAL BUSINESS BANKING CONSUMER SPECIALTY Average balance ($ in thousands) 3Q23 $ 51,792 $ 35,842 $ 27,182 $ 228,800 2Q23 $ 52,313 $ 15,031 $ 687 $ 161,683 1Q23 $ 99,087 $ 41,931 $ 6,502 $ 106,043 4Q22 $ 104,743 $ 31,059 $ 48,646 $ 208,442 Number of accounts 3Q23 96 (23) 996 1,229 2Q23 (54) (110) 482 1,792 1Q23 (46) (206) 188 1,190 4Q22 180 307 377 1,356 Total Portfolio Average Account Size & Cost of Funds Average account size ($ in thousands) 3Q23 $ 265 $ 66 $ 26 $ 140 Cost of funds 3Q231 1.85 % 0.89 % 1.50 % 1.17 % • Estimated uninsured deposits of $3.4 billion, or 29% of total deposits2 • ~80% of commercial deposits utilize Treasury Management services • ~90% of checking and savings accounts utilize online banking services • ~60% of commercial deposits have a lending relationship • ~ 138% of on- and off-balance sheet liquidity to estimated uninsured deposits Overview 14

Earnings Per Share Trend - 3Q23 $1.29 $(0.03) $(0.04) $(0.05) $1.17 2Q23 Operating Revenue Provision for Credit Losses Noninterest Expense 3Q23 Change in EPS 15

$124.3 $138.8 $139.5 $140.7 $141.6 4.10% 4.66% 4.71% 4.49% 4.33% 2.20% 3.65% 4.52% 4.99% 5.26% Net Interest Income Net Interest Margin Avg Fed Funds Rate 3Q22 4Q22 1Q23 2Q23 3Q23 Net Interest Income Trend In Millions 14% NII Growth 16

Net Interest Margin 5.10% 5.87% 6.33% 6.64% 6.80% 2.65% 2.91% 3.03% 3.06% 3.11% 4.47% 5.25% 5.69% 5.97% 6.12% Earning asset yield Securities yield Loan yield 3Q22 4Q22 1Q23 2Q23 3Q23 0.54% 0.94% 1.56% 2.26% 2.77% 0.31% 0.53% 0.92% 1.46% 1.84% 0.67% 1.07% 1.72% 2.40% 2.84% Interest-bearing deposit rate Total cost of deposits Interest-bearing liabilities 3Q22 4Q22 1Q23 2Q23 3Q23 Components of Interest-bearing LiabilitiesComponents of Interest-earning Assets 4.49% 0.09% 0.01% 0.05% (0.03)% (0.28)% 4.33% 2Q23 Loans Securities Other Earning Asset Mix Funding Mix Cost of Funds 3Q23 Margin Bridge 17

2 9 (1) 12 26 3Q22 4Q22 1Q23 2Q23 3Q23 $86 $382 $275 $501 $104 42.5% 41.0% 42.4% 44.6% 41.0% Organic Loans Avg Line Draw % 3Q22 4Q22 1Q23 2Q23 3Q23 3Q23 2Q23 3Q22 NPLs/Loans 0.46% 0.15% 0.19% NPAs/Assets 0.40% 0.12% 0.14% ACL/NPLs 290.5% 877.1% 773.1% ACL/Loans** 1.47% 1.48% 1.67% Annualized Net Charge-offs (Recoveries) to Average Loans Provision for Credit Losses* $0.7 $2.1 $4.2 $6.3 $8.0 3Q22 4Q22 1Q23 2Q23 3Q23 In Millions bps bps bps bps bps In Millions Loan Growth and Average Line of Credit Utilization *Includes credit loss expense on loans, investments and unfunded commitments. **Excludes guaranteed loans. Credit Trends 18

$141.3 $7.7 $(6.9) $142.1 ACL 2Q23 Portfolio Changes Net Charge-offs ACL 3Q23 Allowance for Credit Losses for Loans In Millions • New loans and changes in composition of existing loans • Changes in risk ratings, past due status and reserves on individually evaluated loans • Changes in macroeconomic and qualitative factors 3Q23 In Millions Loans ACL ACL as a % of Loans Commercial and industrial $ 4,449 $ 62 1.39 % Commercial real estate 4,794 58 1.21 % Construction real estate 724 11 1.52 % Residential real estate 376 7 1.86 % Other 274 4 1.46 % Total $ 10,617 $ 142 1.34 % Reserves on sponsor finance, which is included in the categories above, represented $21.7 million. Total ACL percentage of loans excluding government guaranteed loans was 1.47%. Key Assumptions: • Reasonable and supportable forecast period is one year with a one year reversion period. • Forecast considers a weighted average of baseline, upside and downside scenarios. • Primary macroeconomic factors: ◦ Percentage change in GDP ◦ Unemployment ◦ Percentage change in Retail Sales ◦ Percentage change in CRE Index 19

Noninterest Income Trend Other Noninterest Income DetailNoninterest Income In Millions $9.5 $16.9 $16.9 $14.3 $12.1 $3.0 $5.3 $6.1 $5.1 $5.4 $(3.6) $2.4 $1.8 $0.4 $(2.7) $5.0 $4.5 $4.1 $3.9 $4.2 $2.7 $2.3 $2.3 $2.4 $2.6 $2.4 $2.4 $2.5 $2.5 $2.6 7.1% 10.8% 10.8% 9.2% 7.9% Other Tax Credit Income Deposit Services Charge Card Services Wealth Management Noninterest income/Total income 3Q22 4Q22 1Q23 2Q23 3Q23 $3.0 $5.3 $6.1 $5.1 $5.4 $1.2 $0.9 $1.7 $1.2 $1.8 $0.6 $0.2 $0.5 $0.4 $0.7$0.8 $0.8 $0.8 $0.8 $0.8 $0.2 $0.2 $0.3 $0.2 $0.1 $0.2 $2.8 $0.6 $2.1 $0.3 $0.4 $1.7 $0.4 $0.2 $0.5 $1.5 Miscellaneous Servicing Fees BOLI Swap Fees CDE Private Equity Fund Distribution Gain on SBA loan sales Mortgage 3Q22 4Q22 1Q23 2Q23 3Q23 20

Noninterest Expense Trend Other Noninterest Expense DetailNoninterest Expense In Millions $68.8 $77.1 $81.0 $86.0 $88.6 $19.6 $21.4 $21.7 $23.4 $22.7 $7.7 $13.3 $12.7 $17.0 $21.0 $4.5 $4.2 $4.1 $4.0 $4.2 $37.0 $38.2 $42.5 $41.6 $40.7 49.8% 48.1% 50.5% 54.0% 56.2% Other Deposit costs Occupancy Employee compensation and benefits Core efficiency ratio* 3Q22 4Q22 1Q23 2Q23 3Q23 $19.6 $21.4 $21.7 $23.4 $22.7 $9.4 $11.2 $10.7 $12.5 $11.4 $3.5 $3.6 $3.7 $3.7 $3.8$1.6 $2.8 $1.6 $1.6 $1.4$2.0 $1.6 $2.6 $2.6 $2.9 $1.8 $0.9 $1.9 $1.9 $2.1 $1.3 $1.3 $1.2 $1.1 $1.1 Miscellaneous Data processing Professional fees FDIC and other insurance Loan, legal expenses Amortization expense 3Q22 4Q22 1Q23 2Q23 3Q23 21

Capital Tangible Common Equity/Tangible Assets* 7.86% 8.43% 8.81% 8.65% 8.51% Tangible Common Equity/Tangible Assets 3Q22 4Q22 1Q23 2Q23 3Q23 *A Non-GAAP Measure, Refer to Appendix for Reconciliation. **Preliminary regulatory capital ratios. Regulatory Capital 10.0% 14.2% 14.2% 14.3% 14.1% 14.1% 6.5% 11.0% 11.1% 11.2% 11.1% 11.2% CET1 Tier 1 Total Risk Based Capital Minimum "Well Capitalized" Ratio 3Q22 4Q22 1Q23 2Q23 3Q23** 8.0% 12.6% 12.6% 12.6% 12.5% EFSC Capital Strategy: Low Cost - Highly Flexible High Capital Retention Rate – Strong earnings profile – Sustainable dividend profile Supporting Robust Asset Growth – Organic loan and deposit growth – High quality M&A to enhance commercial franchise and geographic diversification Maintain High Quality Capital Stack – Minimize WACC over time (preferred, sub debt, etc.) – Optimize capital levels CET1 ~10%, Tier 1 ~12%, and Total Capital ~14% Maintain 8-9% TCE – Common stock repurchases – M&A deal structures – Drives ROATCE above peer levels TBV and Dividends per Share $26.62 $28.67 $30.55 $31.23 $31.06 $0.23 $0.24 $0.25 $0.25 $0.25 TBV/Share Dividends per Share 3Q22 4Q22 1Q23 2Q23 3Q23 12.6% 22

Appendix

Investment Portfolio Breakout AFS & HTM Securities Obligations of U.S. Government- sponsored enterprises 13% Obligations of states and political subdivisions 42% Agency mortgage- backed securities, 31% Corporate debt securities 6% U.S. Treasury bills 8% TOTAL $2.2 Billion • Effective duration of 5.6 years balances the short 3-year duration of the loan portfolio • Cash flows next 12 months of approximately $270 million • 3.11% tax-equivalent yield • Municipal bond portfolio rated A or better • Laddered maturity and repayment structure for consistent cash flows Overview Total AFS (Fair Value) Total HTM (Fair Value) AFS Securities (Net Unrealized) HTM Securities (Net Unrealized) 3Q22 4Q22 1Q23 2Q23 3Q23 $— $600 $1,200 $1,800 $(320) $(160) $— $160 In Millions $123.2 $158.8 $101.3 $74.6 $53.9 3.68% 5.22% 4.79% 5.07% 5.60% Principal Cost Yield (TEQ) 3Q22 4Q22 1Q23 2Q23 3Q23 Investment Purchase Yield In Millions Investment Portfolio 24

EFSC Borrowing Capacity $4.1 $4.2 $4.3 $0.8 $0.8 $0.9 $2.7 $2.6 $2.5 $0.1 $0.1 $0.1 $0.5 $0.7 $0.8 37% 36% 36% FHLB borrowing capacity FRB borrowing capacity Fed Funds lines Unpledged securities Borrowing capacity/Deposits 1Q23 2Q23 3Q23 In Billions End of Period and Average Loans to Deposits 85% 90% 90% 91% 89% 83% 86% 90% 90% 88% End of period Loans/Deposits Avg Loans/Avg Deposits 3Q22 4Q22 1Q23 2Q23 3Q23 • $945 million available FHLB capacity • $2.5 billion available FRB capacity • $120 million in seven federal funds lines • $791 million unpledged investment securities • $371 million cash • $25 million available line of credit • Portfolio of saleable SBA loans • Investment portfolio/total assets of 16% • FHLB maximum credit capacity is 45% of assets $0.3 $0.3 $0.3 $0.3 $0.2 $0.3 $0.6 $0.9 $1.1 $1.3 Annual Cash Flows Cumulative Cash Flows 2024 2025 2026 2027 2028 Investment Portfolio Cash Flows* In Billions Strong Liquidity Profile *Trailing 12 months ending September 30 of each year Liquidity 25

Office CRE (Non-owner Occupied) Total $483.6 Million Midwest 50.2% Southwest 29.6% West 14.9% Specialty 5.3% Office CRE Loans by Location Real Estate/ Rental/Leasing 85.8% Information 1.8% Health Care and Social Assistance 3.3% Professional Services 1.9% Wholesale Trade 1.8% Finance and Insurance 1.1% Other 4.3% Office CRE Loans by Industry Type Size Average Risk Rating Number of Loans Balance Average Balance > $10 Million 5.30 10 $ 145.4 $ 14.5 $5-10 Million 5.00 14 90.9 6.5 $2-5 Million 5.17 42 128.2 3.1 < $2 Million 5.17 206 119.1 0.6 Total 5.17 272 $ 483.6 $ 1.8 Office CRE Loans by Size $ In Millions• Average loan-to-origination value 49% • 71% of loans have recourse to owners • Average debt-service coverage ratio (DSCR) of 1.48x (2022) • Average market occupancy of 88%; average rents of $24 psf • 42% Class A, 54% Class B, 4% Class C • $14.2 million unfunded commitments 26

Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, ROATCE, PPNR, PPNR return on average assets (“PPNR ROAA”), core efficiency ratio, the tangible common equity ratio, and tangible book value per common share, in this presentation that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. The Company considers its tangible common equity, ROATCE, PPNR, PPNR ROAA, core efficency ratio, the tangible common equity ratio, and tangible book value per common share, collectively “core performance measures,” presented in this report and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures include exclude certain other income and expense items, such as merger related expenses, facilities charges, and the gain or loss on sale of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject. The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated. 27

Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,611,880 $ 1,618,233 $ 1,592,820 $ 1,522,263 $ 1,446,218 Less preferred stock 71,988 71,988 71,988 71,988 71,988 Less goodwill 365,164 365,164 365,164 365,164 365,164 Less intangible assets 13,425 14,544 15,680 16,919 18,217 Tangible common equity $ 1,161,303 $ 1,166,537 $ 1,139,988 $ 1,068,192 $ 990,849 Less net unrealized losses on HTM portfolio, after tax of 25.2% 81,367 53,611 48,630 61,435 81,752 Tangible common equity adjusted for unrealized losses on HTM securities $ 1,079,936 $ 1,112,926 $ 1,091,358 $ 1,006,757 $ 909,097 Common shares outstanding $ 37,385 $ 37,359 $ 37,311 $ 37,253 $ 37,223 Tangible book value per share $ 31.06 $ 31.23 $ 30.55 $ 28.67 $ 26.62 Total assets $ 14,025,042 $ 13,871,154 $ 13,325,982 $ 13,054,172 $ 12,994,787 Less goodwill 365,164 365,164 $ 365,164 365,164 365,164 Less intangible assets 13,425 14,544 $ 15,680 16,919 18,217 Tangible assets $ 13,646,453 $ 13,491,446 $ 12,945,138 $ 12,672,089 $ 12,611,406 Tangible common equity to tangible assets 8.51 % 8.65 % 8.81 % 8.43 % 7.86 % Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities 7.91 % 8.25 % 8.43 % 7.94 % 7.21 % CET1 RATIO ADJUSTED FOR UNREALIZED LOSSES CET1 capital $ 1,349,546 Less unrealized losses on investment portfolio, after tax of 25.2% 257,157 CET1 capital excluding unrealized losses on securities $ 1,092,389 Total risk-weighted assets $ 12,056,740 CET1 capital to risk-weighted assets 11.2 % CET1 capital excluding unrealized losses to risk-weighted assets 9.1 % 28

Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 141,639 $ 140,692 $ 139,529 $ 138,835 $ 124,290 Noninterest income 12,085 14,290 16,898 16,873 9,454 Less gain on sale of investment securities — — 381 — — Less gain (loss) on sale of other real estate owned — 97 90 — (22) Less noninterest expense 88,644 85,956 80,983 77,149 68,843 PPNR $ 65,080 $ 68,929 $ 74,973 $ 78,559 $ 64,923 Average assets $ 14,068,860 $ 13,671,985 $ 13,131,195 $ 12,986,568 $ 13,158,121 ROAA - GAAP net income 1.26 % 1.44 % 1.72 % 1.83 % 1.51 % PPNR ROAA - PPNR 1.84 % 2.02 % 2.29 % 2.40 % 1.96 % Quarter ended ($ in thousands) Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE) Average shareholder’s equity $ 1,648,605 $ 1,621,337 $ 1,568,451 $ 1,490,592 $ 1,494,504 Less average preferred stock 71,988 71,988 71,988 71,988 71,988 Less average goodwill 365,164 365,164 365,164 365,164 365,164 Less average intangible assets 13,967 15,094 16,247 17,544 18,857 Average tangible common equity $ 1,197,486 $ 1,169,091 $ 1,115,052 $ 1,035,896 $ 1,038,495 Net income available to common shareholders $ 43,727 $ 48,190 $ 54,800 $ 59,064 $ 49,263 ROATCE 14.49 % 16.53 % 19.93 % 22.62 % 18.82 % 29

Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 CORE EFFICIENCY RATIO Net interest income (GAAP) $ 141,639 $ 140,692 $ 139,529 $ 138,835 $ 124,290 Tax-equivalent adjustment 2,061 2,062 2,041 1,983 1,854 Net interest income - FTE (non-GAAP) 143,700 142,754 141,570 140,818 126,144 Noninterest income (GAAP) 12,085 14,290 16,898 16,873 9,454 Less gain on sale of investment securities — — 381 — — Less gain (loss) on sale of other real estate owned — 97 90 — (22) Core revenue (non-GAAP) 155,785 156,947 157,997 157,691 135,620 Noninterest expense (GAAP) 88,644 85,956 80,983 77,149 68,843 Less amortization on intangibles 1,118 1,136 1,239 1,299 1,310 Core noninterest expense (non-GAAP) 87,526 84,820 79,744 75,850 67,533 Core efficiency ratio (non-GAAP) 56.18 % 54.04 % 50.47 % 48.10 % 49.80 % Quarter ended ($ in thousands) Sep 30, 2023 CALCULATION OF ESTIMATED INSURED DEPOSITS Estimated uninsured deposits per Call Report $ 3,886,299 Collateralized/affiliate deposits (455,553) Accrued interest on deposits (6,231) Adjusted uninsured/uncollateralized deposits 3,424,515 Estimated insured/collateralized deposits 8,485,392 Total deposits $ 11,909,907 30

Document and Entity Information Document	Oct. 23, 2023
Document Type	8-K
Document Period End Date	Oct. 23, 2023
Entity Registrant Name	ENTERPRISE FINANCIAL SERVICES CORP
Entity Incorporation, State or Country Code	DE
Entity File Number	001-15373
Entity Tax Identification Number	43-1706259
Entity Address, Address Line One	150 N. Meramec Avenue
Entity Address, City or Town	St. Louis
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63105
City Area Code	314
Local Phone Number	725-5500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001025835
Amendment Flag	false
Common Stock
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	EFSC
Security Exchange Name	NASDAQ
Depositary Shares
Title of 12(b) Security	Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A
Trading Symbol	EFSCP
Security Exchange Name	NASDAQ