Enterprise Financial Reports Second Quarter 2024 Results

Second Quarter Results

Net income of $45.4 million, or $1.19 per diluted common share, compared to $1.05 in the linked quarter and $1.29 in the prior year quarter
Net interest margin of 4.19%, quarterly increase of 6 basis points
Net interest income of $140.5 million, quarterly increase of $2.8 million
Total loans of $11.0 billion, quarterly decrease of $28.5 million
Total deposits of $12.3 billion, quarterly increase of $28.7 million
Return on Average Assets (“ROAA”) of 1.25%, compared to 1.12% and 1.44% in the linked and prior year quarters, respectively
Return on Average Tangible Common Equity (“ROATCE”)1 of 13.77%, compared to 12.31% and 16.53% in the linked and prior year quarters, respectively
Tangible common equity to tangible assets1 of 9.18%, an increase of 17 basis points and 53 basis points from the linked and prior year quarters, respectively
Tangible book value per share1 of $35.02, annualized increase of 10%
Repurchased 225,135 shares and increased quarterly dividend $0.01 to $0.27 per common share for the third quarter 2024

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 second quarter earnings, “I was very pleased with our second quarter results, including our strong asset quality and the growth in operating revenue, customer deposits, and tangible common equity. We had a return on average assets of 1.25% and a return on tangible common equity of 13.8%. These returns increased our tangible book value per share by 10% on an annualized basis this quarter. Over the past 10 years, we have produced a compounded annual growth rate of 10% on our tangible book value per share. With the strength of our balance sheet and our solid return profile, we opportunistically repurchased over $8 million of common stock and announced another increase to our quarterly dividend.”

Highlights

Earnings - Net income in the second quarter 2024 was $45.4 million, an increase of $5.0 million and a decrease of $3.7 million compared to the linked and prior year quarters, respectively. Earnings per share (“EPS”) was $1.19 per diluted common share for the second quarter 2024, compared to $1.05 and $1.29 per diluted common share for the linked and prior year quarters, respectively. Adjusted diluted earnings per share1 was $1.21 for the second quarter 2024, compared to $1.07 for the linked quarter.

Pre-provision net revenue (“PPNR”)1 - PPNR of $63.3 million in the second quarter 2024 increased $5.9 million and decreased $5.7 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to higher noninterest income, primarily tax credit income, and higher net interest income that benefited from higher average loan balances and expanding yields on earning assets. These increases were partially offset by an increase in deposit interest expense. The decrease compared to the prior year quarter was primarily due to the higher interest rate environment that increased deposit interest expense and the cost of variable deposit services costs, which are influenced by current market rates.

Net interest income and net interest margin (“NIM”) - Net interest income of $140.5 million for the second quarter 2024 increased $2.8 million and decreased $0.2 million from the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income for the second quarter 2024 increased due to an expanded net interest spread and higher average loan and interest-earning asset balances. NIM was 4.19% for the second quarter 2024, compared to 4.13% and 4.49% for the linked and prior year quarters, respectively. The total cost of deposits of 2.16% for the second quarter 2024 increased 3 basis points and 70 basis points from the linked and prior year quarters, respectively.

Noninterest income - Noninterest income of $15.5 million for the second quarter 2024 increased $3.3 million and $1.2 million from the linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily due to an increase in tax credit income on higher activity that was partially offset by an increase in market interest rates that decreased the fair value of certain tax credits.

Noninterest expense - Noninterest expense of $94.0 million for the second quarter 2024 increased $0.5 million and $8.1 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily driven by higher variable deposit servicing costs and expenses related to the core system conversion, partially offset by a decrease in employee compensation and the FDIC special assessment. The increase from the prior year quarter was primarily due to variable deposit servicing costs and employee compensation.

Loans - Loans totaled $11.0 billion at June 30, 2024, a decrease of $28.5 million from the linked quarter and an increase of $487.4 million from the prior year quarter. Average loans totaled $11.0 billion for the quarter ended June 30, 2024, compared to $10.9 billion and $10.3 billion for the linked and prior year quarters, respectively.

Asset quality - The allowance for credit losses to total loans was 1.27% at June 30, 2024, compared to 1.23% at March 31, 2024 and 1.34% at June 30, 2023. The ratio of nonperforming assets to total assets was 0.33% at June 30, 2024, compared to 0.30% and 0.12% at March 31, 2024 and June 30, 2023, respectively. The provision for credit losses recorded in the second quarter 2024 was $4.8 million, compared to $5.8 million and $6.3 million for the linked and prior year quarters, respectively.

Deposits - Total deposits increased $28.7 million from March 31, 2024 to $12.3 billion at June 30, 2024, despite a decrease of $164.1 million in brokered certificates of deposit. Excluding brokered certificates of deposits, deposits increased $192.8 million. Average deposits were $12.3 billion, $12.2 billion and $11.4 billion for the current, linked and prior year quarters, respectively. At June 30, 2024, noninterest-bearing deposit accounts totaled $3.9 billion, or 32.0% of total deposits, and the loan to deposit ratio was 89.6%.

Liquidity - The total available on- and off-balance-sheet liquidity was approximately $5.6 billion at June 30, 2024. On-balance-sheet liquidity consisted of cash of $392.8 million and $1.2 billion in unpledged investment securities at June 30, 2024. Off-balance-sheet liquidity consisted of $1.2 billion available through the Federal Home Loan Bank, $2.6 billion available through the Federal Reserve and $140.0 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 $1.8 billion and the tangible common equity to tangible assets ratio2 was 9.18% at June 30, 2024, compared to 9.01% at March 31, 2024. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.4% and a total risk-based capital ratio of 13.5% at June 30, 2024. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.7% and 14.6%, respectively, at June 30, 2024. The Company’s board of directors approved a quarterly dividend of $0.27 per common share, payable on September 30, 2024 to shareholders of record as of September 16, 2024. 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) June 15, 2024 to (but excluding) September 15, 2024. The dividend will be payable on September 15, 2024 and will be paid on September 16, 2024 to holders of record of Series A Preferred Stock as of August 30, 2024.

Net Interest Income and NIM

Average Balance Sheets

The following table presents, for the periods indicated, certain information related to the 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

June 30, 2024

March 31, 2024

June 30, 2023

($ 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

10,962,488

189,346

6.95

10,927,932

186,703

6.87

10,284,873

170,314

6.64

Securities2

2,396,519

19,956

3.35

2,400,571

19,491

3.27

2,297,995

17,550

3.06

Interest-earning deposits

325,452

4,389

5.42

268,068

3,569

5.35

173,785

2,095

4.84

Total interest-earning assets

13,684,459

213,691

6.28

13,596,571

209,763

6.20

12,756,653

189,959

5.97

Noninterest-earning assets

961,922

959,548

915,332

Total assets

14,646,381

14,556,119

13,671,985

Liabilities and Shareholders’ Equity

Interest-bearing liabilities:

Interest-bearing demand accounts

2,950,827

18,801

2.56

2,924,276

18,612

2.56

2,509,805

10,120

1.62

Money market accounts

3,434,712

31,926

3.74

3,401,802

31,357

3.71

2,920,079

20,499

2.82

Savings accounts

573,115

335

0.24

587,113

303

0.21

686,973

227

0.13

Certificates of deposit

1,412,263

15,312

4.36

1,341,990

14,201

4.26

1,219,500

10,526

3.46

Total interest-bearing deposits

8,370,917

66,374

3.19

8,255,181

64,473

3.14

7,336,357

41,372

2.26

Subordinated debentures and notes

156,188

2,684

6.91

156,046

2,484

6.40

155,632

2,431

6.27

FHLB advances

40,308

561

5.60

73,791

1,029

5.61

98,912

1,279

5.19

Securities sold under agreements to repurchase

158,969

1,401

3.54

204,898

1,804

3.54

162,606

704

1.74

Other borrowings

36,203

1.06

42,736

205

1.93

133,770

1,419

4.25

Total interest-bearing liabilities

8,762,585

71,115

3.26

8,732,652

69,995

3.22

7,887,277

47,205

2.40

Noninterest-bearing liabilities:

Demand deposits

3,973,336

3,925,522

4,051,456

Other liabilities

162,220

159,247

111,915

Total liabilities

12,898,141

12,817,421

12,050,648

Shareholders' equity

1,748,240

1,738,698

1,621,337

Total liabilities and shareholders' equity

14,646,381

14,556,119

13,671,985

Total net interest income

142,576

139,768

142,754

Net interest margin

4.19

4.13

4.49

1 Average balances include nonaccrual loans. Interest income includes loan fees of $2.2 million, $2.4 million, and $3.7 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $2.1 million, $2.0 million, and $2.1 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.

Net interest income of $140.5 million for the second quarter 2024 increased $2.8 million and decreased $0.2 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $142.6 million, $139.8 million and $142.8 million for the current, linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to an expansion of the loan portfolio and securities yields, and to a lesser extent, an increase in average earning assets. This was partially offset by an increase in both the cost and average balance of interest-bearing deposits. The decrease from the prior year quarter reflects higher interest expense on the deposit portfolio and continued remixing into higher cost deposit categories.

Interest income increased $3.9 million during the second quarter 2024. Interest on loans benefited from a $34.6 million increase in average loan balances compared to the linked quarter, as well as an 8 basis point increase in yield. The average interest rate of new loan originations in the second quarter 2024 was 8.07%, an increase of 23 basis points from the linked quarter. Interest on cash accounts increased $0.8 million from the linked quarter due to a $57.4 million increase in average balances, and interest on securities increased $0.5 million due to an 8 basis point increase in yield.

Interest expense increased $1.1 million in the second quarter 2024 primarily due to an increase in interest expense on certificates of deposit that includes brokered amounts. Average certificates of deposit increased $70.3 million and the cost increased 10 basis points in the second quarter 2024. The average cost of interest-bearing deposits was 3.19%, an increase of 5 basis points compared to the linked quarter. The total cost of deposits, including noninterest-bearing demand accounts, was 2.16% during the second quarter 2024, compared to 2.13% in the linked quarter. While the total cost of deposits increased over the linked quarter, the monthly cost of total deposits has been stable since March 2024.

NIM, on a tax equivalent basis, was 4.19% in the second quarter 2024, an increase of 6 basis points from the linked quarter and a decrease of 30 basis points from the prior year quarter. For the month of June 2024, the loan portfolio yield was 6.92% and the cost of total deposits was 2.17%.

Investments

June 30, 2024

March 31, 2024

June 30, 2023

($ in thousands)

Carrying Value

Net Unrealized Loss

Carrying Value

Net Unrealized Loss

Carrying Value

Net Unrealized Loss

Available-for-sale (AFS)

1,615,930

(172,734

)

1,611,883

(165,586

)

1,550,375

(179,857

)

Held-to-maturity (HTM)

772,648

(69,442

)

758,017

(63,593

)

723,959

(71,673

)

Total

2,388,578

(242,176

)

2,369,900

(229,179

)

2,274,334

(251,530

)

Investment securities totaled $2.4 billion at June 30, 2024, an increase of $18.7 million from the linked quarter. Investment purchases in the second quarter 2024 had a weighted average, tax equivalent yield of 5.43%. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities3 was 8.82% at June 30, 2024, compared to 8.68% at March 31, 2024.

Loans

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

($ in thousands)

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

C&I

2,107,097

2,263,817

2,186,203

2,020,303

2,029,370

CRE investor owned

2,308,926

2,280,990

2,291,660

2,260,220

2,290,701

CRE owner occupied

1,313,742

1,279,929

1,262,264

1,255,885

1,208,675

SBA loans*

1,269,145

1,274,780

1,281,632

1,309,497

1,327,667

Sponsor finance*

865,883

865,180

872,264

888,000

879,491

Life insurance premium financing*

996,154

1,003,597

956,162

928,486

912,274

Tax credits*

738,249

718,383

734,594

683,580

609,137

Residential real estate

339,889

354,615

359,957

364,618

354,588

Construction and land development

791,780

726,742

670,567

639,555

599,375

Other

269,142

260,459

268,815

266,676

301,345

Total loans

11,000,007

11,028,492

10,884,118

10,616,820

10,512,623

Quarterly loan yield

6.95

6.87

6.80

6.64

Variable interest rate loans to total loans

*Specialty loan category

Loans totaled $11.0 billion at June 30, 2024, a decrease of $28.5 million compared to the linked quarter. During the current quarter, C&I loans and residential real estate loans decreased $156.7 million and $14.7 million, respectively, while construction loans and CRE loans increased $65.0 million and $61.7 million, respectively. Loan origination activity and advances on lines of credit were strong during the second quarter 2024, but were offset by paydowns and maturities in the current quarter that were at the highest quarterly level in the past five quarters. Average line utilization was approximately 46% for the quarter ended June 30, 2024, compared to 44% and 45% 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:

($ in thousands)

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

Nonperforming loans*

39,384

35,642

43,728

48,932

16,112

Other

8,746

8,466

5,736

6,933

—

Nonperforming assets*

48,130

44,108

49,464

55,865

16,112

Nonperforming loans to total loans

0.36

0.32

0.40

0.46

0.15

Nonperforming assets to total assets

0.33

0.30

0.34

0.40

0.12

Allowance for credit losses to total loans

1.27

1.23

1.24

1.34

Quarterly net charge-offs

605

5,864

28,479

6,856

2,973

*Guaranteed balances excluded

12,933

9,630

10,682

5,974

6,666

Nonperforming assets increased $4.0 million during the second quarter 2024 and increased $32.0 million from the prior year quarter. The increase in nonperforming assets in the current quarter was primarily related to the addition of an agricultural relationship that moved into nonperforming status during the period, partially offset by a reduction from charge-offs and repayments. Included in nonperforming loans is $1.3 million of loans that are 90 days past due and accruing interest. The Company anticipates full repayment of these loans. The increase in nonperforming assets from the prior year quarter was primarily due to a $27.1 million increase in real estate loans and an $8.7 million increase in OREO and other repossessed assets, partially offset by a $2.9 million decrease in C&I loans. Annualized net charge-offs totaled 2 basis points of average loans in the second quarter 2024, compared to 22 basis points in the linked quarter and 12 basis point in the prior year quarter.

The provision for credit losses totaled $4.8 million in the second quarter 2024, compared to $5.8 million and $6.3 million in the linked and prior year quarters, respectively. The provision for credit losses in the second quarter 2024 was primarily related to an increase in reserves on individually evaluated loans and updates to qualitative factors used in the allowance calculation.

Deposits

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

($ in thousands)

June 30, 2024

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

Noninterest-bearing demand accounts

3,928,308

3,805,334

3,958,743

3,852,486

3,880,561

Interest-bearing demand accounts

2,951,899

2,956,282

2,950,259

2,749,598

2,629,339

Money market and savings accounts

4,039,626

4,006,702

3,994,455

3,837,145

3,577,856

Brokered certificates of deposit

494,870

659,005

482,759

695,551

893,808

Other certificates of deposit

867,680

826,378

790,155

775,127

638,296

Total deposit portfolio

12,282,383

12,253,701

12,176,371

11,909,907

11,619,860

Noninterest-bearing deposits to total deposits

32.0

31.1

32.5

32.3

33.4

Quarterly cost of deposits

2.16

2.13

2.03

1.84

1.46

Total deposits at June 30, 2024 were $12.3 billion, an increase of $28.7 million and $662.5 million from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, total deposits increased $192.8 million and $1.1 billion, from the linked and prior year quarters, respectively. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.2 billion at June 30, 2024, compared to $1.1 billion at March 31, 2024.

Total estimated insured deposits4, which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled $8.7 billion, or 71% of total deposits, at both June 30, 2024 and March 31, 2024.

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

($ in thousands)

June 30, 2024

March 31, 2024

Increase (decrease)

June 30, 2023

Increase (decrease)

Deposit service charges

4,542

4,423

119

3,910

632

Wealth management revenue

2,590

2,544

2,472

118

Card services revenue

2,497

2,412

2,464

Tax credit income (loss)

1,874

(2,190

)

4,064

186

368

1,506

409

Other income

3,991

4,969

(978

)

(20

5,076

(1,085

)

(21

Total noninterest income

15,494

12,158

3,336

14,290

1,204

Total noninterest income was $15.5 million for the second quarter 2024, an increase of $3.3 million from the linked quarter and an increase of $1.2 million from the prior year quarter. The increase from the linked and prior year quarters was primarily due to an increase 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 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

($ in thousands)

June 30, 2024

March 31, 2024

Increase (decrease)

June 30, 2023

Increase (decrease)

Gain on SBA loan sales

—

1,415

(1,415

)

(100

—

BOLI

855

864

)

797

Community development investments

381

585

(204

)

(35

2,077

(1,696

)

(82

Private equity fund distributions

411

162

249

154

371

Servicing fees

594

287

307

107

407

187

Swap fees

217

172

382

173

Miscellaneous income

1,533

1,611

(78

)

1,251

282

Total other income

3,991

4,969

(978

)

(20

5,076

(1,085

)

(21

The decrease in other income from the linked quarter was primarily driven by gains on the sale of SBA loans that were recognized in the linked quarter, while the decrease from the prior year quarter was due to lower community development income. Community development income and private equity fund distributions are not consistent sources of income and fluctuate based on distributions from the underlying funds.

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

($ in thousands)

June 30, 2024

March 31, 2024

Increase (decrease)

June 30, 2023

Increase (decrease)

Employee compensation and benefits

44,524

45,262

(738

)

41,641

2,883

Deposit costs

21,706

20,277

1,429

16,980

4,726

Occupancy

4,197

4,326

(129

)

3,954

243

FDIC special assessment

—

625

(625

)

(100

—

Core conversion expense

1,250

350

900

257

—

1,250

100

Other expense

22,340

22,661

(321

)

23,381

(1,041

)

Total noninterest expense

94,017

93,501

516

85,956

8,061

Employee compensation and benefits decreased $0.7 million from the linked quarter primarily due to employer payroll taxes that are seasonally higher in the first quarter each year and a decline in self-insured medical claims. Deposit costs relate to certain specialized deposit businesses that receive an earnings credit allowance for deposit related expenses that are impacted by interest rates and average balances. Deposit costs increased $1.4 million from the linked quarter primarily due to the expiration of unused allowances that reduced expense in the first quarter and growth in deposits. Expenses related to the core system conversion increased $0.9 million from the linked quarter due to the continued progress on the project.

The increase in noninterest expense of $8.1 million from the prior year quarter was primarily due to an increase in the associate base, merit increases throughout 2023 and 2024, an increase in variable deposit costs due to higher earnings credit rates and average balances, and additional expenses incurred related to the core system conversion.

For the second quarter 2024, the core efficiency ratio5 was 58.1%, compared to 60.2% for the linked quarter and 54.0% for the prior year quarter.

Income Taxes

The effective tax rate was 20.5%, compared to 20.2% and 21.6% in the linked and prior year quarters, respectively. The decrease in the effective tax rate from the prior year quarter was driven by tax credit opportunities the Company has deployed as part of its tax planning strategy.

Capital

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

($ in thousands)

June 30, 2024*

March 31, 2024

December 31, 2023

September 30, 2023

June 30, 2023

Shareholders’ equity

1,755,273

1,731,725

1,716,068

1,611,880

1,618,233

Total risk-based capital to risk-weighted assets

14.6

14.3

14.2

14.1

Tier 1 capital to risk weighted assets

13.0

12.8

12.7

12.6

12.5

Common equity tier 1 capital to risk-weighted assets

11.7

11.4

11.3

11.2

11.1

Leverage ratio

11.1

11.0

10.9

11.0

Tangible common equity to tangible assets

9.18

9.01

8.96

8.51

8.65

*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 $1.8 billion at June 30, 2024, an increase of $23.5 million from the linked quarter. Tangible common book value per share was $35.02 at June 30, 2024, compared to $34.21 and $31.23 at March 31, 2024 and June 30, 2023, 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.

________________________________

1 ROATCE, tangible common equity to tangible assets, tangible book value per share, adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

2 Tangible common equity to tangible assets ratio is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

3 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.

4 Estimated insured deposits is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

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

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 additional financial measures, such as tangible common equity, PPNR, ROATCE, core efficiency ratio, the tangible common equity ratio, tangible book value per common share, estimated insured deposits and adjusted diluted earnings per 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.

The Company considers its tangible common equity, PPNR, ROATCE, core efficiency ratio, the tangible common equity ratio, tangible book value per common share, estimated insured deposits and adjusted diluted earnings per 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 the FDIC special assessment, core conversion expenses, 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, July 23, 2024. During the call, management will review the second quarter 2024 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 1-800-715-9871. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC2Q2024EarningsCallRegistration. 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 $14.6 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”, “pipeline” 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, 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, 2023, 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.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited)

Quarter ended

Six months ended

(in thousands, except per share data)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

Jun 30, 2024

Jun 30, 2023

EARNINGS SUMMARY

Net interest income

140,529

137,728

140,732

141,639

140,692

278,257

280,221

Provision for credit losses

4,819

5,756

18,053

8,030

6,339

10,575

10,522

Noninterest income

15,494

12,158

25,452

12,085

14,290

27,652

31,188

Noninterest expense

94,017

93,501

92,603

88,644

85,956

187,518

166,939

Income before income tax expense

57,187

50,629

55,528

57,050

62,687

107,816

133,948

Income tax expense

11,741

10,228

10,999

12,385

13,560

21,969

29,083

Net income

45,446

40,401

44,529

44,665

49,127

85,847

104,865

Preferred stock dividends

937

938

937

938

937

1,875

Net income available to common shareholders

44,509

39,463

43,592

43,727

48,190

83,972

102,990

Diluted earnings per common share

1.19

1.05

1.16

1.17

1.29

2.24

2.75

Adjusted diluted earnings per common share1

1.21

1.07

1.21

1.17

1.29

2.28

2.75

Return on average assets

1.25

1.12

1.23

1.26

1.44

1.18

1.58

Adjusted return on average assets1

1.27

1.14

1.28

1.26

1.44

1.21

1.58

Return on average common equity1

10.68

9.52

10.94

11.00

12.48

10.10

13.64

Adjusted return on average common equity1

10.90

9.70

11.40

11.00

12.48

10.30

13.64

ROATCE1

13.77

12.31

14.38

14.49

16.53

13.04

18.18

Adjusted ROATCE1

14.06

12.53

14.98

14.49

16.53

13.30

18.18

Net interest margin (tax equivalent)

4.19

4.13

4.23

4.33

4.49

4.16

4.60

Efficiency ratio

60.26

62.38

55.72

57.66

55.46

61.30

53.61

Core efficiency ratio1

58.09

60.21

53.06

56.18

54.04

59.13

52.25

Assets

14,615,666

14,613,338

14,518,590

14,025,042

13,871,154

Average assets

14,646,381

14,556,119

14,332,804

14,068,860

13,671,985

14,601,250

13,403,084

Period end common shares outstanding

37,344

37,515

37,416

37,385

37,359

Dividends per common share

0.26

0.25

0.51

0.50

Tangible book value per common share1

35.02

34.21

33.85

31.06

31.23

Tangible common equity to tangible assets1

9.18

9.01

8.96

8.51

8.65

Total risk-based capital to risk-weighted assets2

14.6

14.3

14.2

14.1

1Refer to Reconciliations of Non-GAAP Financial Measures tables 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

Six months ended

(in thousands, except per share data)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

Jun 30, 2024

Jun 30, 2023

INCOME STATEMENTS

NET INTEREST INCOME

Interest income

211,644

207,723

207,083

200,906

187,897

419,367

356,930

Interest expense

71,115

69,995

66,351

59,267

47,205

141,110

76,709

Net interest income

140,529

137,728

140,732

141,639

140,692

278,257

280,221

Provision for credit losses

4,819

5,756

18,053

8,030

6,339

10,575

10,522

Net interest income after provision for credit losses

135,710

131,972

122,679

133,609

134,353

267,682

269,699

NONINTEREST INCOME

Deposit service charges

4,542

4,423

4,334

4,187

3,910

8,965

8,038

Wealth management revenue

2,590

2,544

2,428

2,614

2,472

5,134

4,988

Card services revenue

2,497

2,412

2,666

2,560

2,464

4,909

4,802

Tax credit income (loss)

1,874

(2,190

)

9,688

(2,673

)

368

(316

)

2,181

Other income

3,991

4,969

6,336

5,397

5,076

8,960

11,179

Total noninterest income

15,494

12,158

25,452

12,085

14,290

27,652

31,188

NONINTEREST EXPENSE

Employee compensation and benefits

44,524

45,262

39,651

40,771

41,641

89,786

84,144

Deposit costs

21,706

20,277

21,606

20,987

16,980

41,983

29,700

Occupancy

4,197

4,326

4,313

4,198

3,954

8,523

8,015

FDIC special assessment

—

625

2,412

—

625

—

Core conversion expense

1,250

350

—

1,600

—

Other expense

22,340

22,661

24,621

22,688

23,381

45,001

45,080

Total noninterest expense

94,017

93,501

92,603

88,644

85,956

187,518

166,939

Income before income tax expense

57,187

50,629

55,528

57,050

62,687

107,816

133,948

Income tax expense

11,741

10,228

10,999

12,385

13,560

21,969

29,083

Net income

45,446

40,401

44,529

44,665

49,127

85,847

104,865

Preferred stock dividends

937

938

937

938

937

1,875

Net income available to common shareholders

44,509

39,463

43,592

43,727

48,190

83,972

102,990

Basic earnings per common share

1.19

1.05

1.16

1.17

1.29

2.24

2.76

Diluted earnings per common share

1.19

1.05

1.16

1.17

1.29

2.24

2.75

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

($ in thousands)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

BALANCE SHEET

ASSETS

Cash and due from banks

176,698

157,697

193,275

190,806

202,702

Interest-earning deposits

219,342

215,951

243,610

184,245

125,328

Debt and equity investments

2,460,549

2,443,977

2,434,902

2,279,578

2,340,821

Loans held for sale

606

610

359

212

551

Loans

11,000,007

11,028,492

10,884,118

10,616,820

10,512,623

Allowance for credit losses

(139,464

)

(135,498

)

(134,771

)

(142,133

)

(141,319

)

Total loans, net

10,860,543

10,892,994

10,749,347

10,474,687

10,371,304

Fixed assets, net

44,831

44,382

42,681

41,268

41,988

Goodwill

365,164

Intangible assets, net

10,327

11,271

12,318

13,425

14,544

Other assets

477,606

481,292

476,934

475,657

408,752

Total assets

14,615,666

14,613,338

14,518,590

14,025,042

13,871,154

LIABILITIES AND SHAREHOLDERS’ EQUITY

Noninterest-bearing deposits

3,928,308

3,805,334

3,958,743

3,852,486

3,880,561

Interest-bearing deposits

8,354,075

8,448,367

8,217,628

8,057,421

7,739,299

Total deposits

12,282,383

12,253,701

12,176,371

11,909,907

11,619,860

Subordinated debentures and notes

156,265

156,124

155,984

155,844

155,706

FHLB advances

78,000

125,000

—

150,000

Other borrowings

178,269

195,246

297,829

182,372

199,390

Other liabilities

165,476

151,542

172,338

165,039

127,965

Total liabilities

12,860,393

12,881,613

12,802,522

12,413,162

12,252,921

Shareholders’ equity:

Preferred stock

71,988

Common stock

373

375

374

Additional paid-in capital

994,116

995,969

995,208

992,044

988,355

Retained earnings

810,935

778,784

749,513

715,303

680,981

Accumulated other comprehensive loss

(122,139

)

(115,391

)

(101,015

)

(167,829

)

(123,465

)

Total shareholders’ equity

1,755,273

1,731,725

1,716,068

1,611,880

1,618,233

Total liabilities and shareholders’ equity

14,615,666

14,613,338

14,518,590

14,025,042

13,871,154

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Six months ended

June 30, 2024

June 30, 2023

($ 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

10,945,211

376,049

6.91

10,041,312

323,076

6.49

Securities2

2,398,545

39,447

3.31

2,293,249

34,667

3.05

Interest-earning deposits

296,759

7,958

5.39

140,206

3,290

4.73

Total interest-earning assets

13,640,515

423,454

6.24

12,474,767

361,033

5.84

Noninterest-earning assets

960,735

928,317

Total assets

14,601,250

13,403,084

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing liabilities:

Interest-bearing demand accounts

2,937,551

37,413

2.56

2,356,708

16,027

1.37

Money market accounts

3,418,257

63,283

3.72

2,873,715

35,970

2.52

Savings accounts

580,115

637

0.22

709,490

457

0.13

Certificates of deposit

1,377,126

29,514

4.31

946,527

13,579

2.89

Total interest-bearing deposits

8,313,049

130,847

3.17

6,886,440

66,033

1.93

Subordinated debentures and notes

156,117

5,168

6.66

155,565

4,840

6.27

FHLB advances

57,049

1,590

5.60

104,887

2,611

5.02

Securities sold under agreements to repurchase

181,933

3,205

3.54

188,958

1,453

1.55

Other borrowings

39,470

300

1.53

94,048

1,772

3.80

Total interest-bearing liabilities

8,747,618

141,110

3.24

7,429,898

76,709

2.08

Noninterest-bearing liabilities:

Demand deposits

3,949,429

4,265,521

Other liabilities

160,734

112,625

Total liabilities

12,857,781

11,808,044

Shareholders' equity

1,743,469

1,595,040

Total liabilities and shareholders' equity

14,601,250

13,403,084

Total net interest income

282,344

284,324

Net interest margin

4.16

4.60

1 Average balances include nonaccrual loans. Interest income includes loan fees of $4.6 million and $7.4 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $4.1 million for both the six months ended June 30, 2024 and June 30, 2023, respectively.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

At or for the quarter ended

($ in thousands)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

LOAN PORTFOLIO

Commercial and industrial

4,619,448

4,766,310

4,672,559

4,448,535

4,360,862

Commercial real estate

4,856,751

4,804,803

4,803,571

4,794,355

4,802,293

Construction real estate

893,672

820,416

760,425

723,796

671,573

Residential real estate

351,934

367,218

372,188

376,120

368,867

Other

278,202

269,745

275,375

274,014

309,028

Total loans

11,000,007

11,028,492

10,884,118

10,616,820

10,512,623

DEPOSIT PORTFOLIO

Noninterest-bearing demand accounts

3,928,308

3,805,334

3,958,743

3,852,486

3,880,561

Interest-bearing demand accounts

2,951,899

2,956,282

2,950,259

2,749,598

2,629,339

Money market and savings accounts

4,039,626

4,006,702

3,994,455

3,837,145

3,577,856

Brokered certificates of deposit

494,870

659,005

482,759

695,551

893,808

Other certificates of deposit

867,680

826,378

790,155

775,127

638,296

Total deposits

12,282,383

12,253,701

12,176,371

11,909,907

11,619,860

AVERAGE BALANCES

Loans

10,962,488

10,927,932

10,685,961

10,521,966

10,284,873

Securities

2,396,519

2,400,571

2,276,915

2,302,850

2,297,995

Interest-earning assets

13,684,459

13,596,571

13,383,638

13,160,587

12,756,653

Assets

14,646,381

14,556,119

14,332,804

14,068,860

13,671,985

Deposits

12,344,253

12,180,703

12,163,346

11,922,534

11,387,813

Shareholders’ equity

1,748,240

1,738,698

1,652,882

1,648,605

1,621,337

Tangible common equity1

1,300,305

1,289,776

1,202,872

1,197,486

1,169,091

YIELDS (tax equivalent)

Loans

6.95

6.87

6.80

6.64

Securities

3.35

3.27

3.20

3.11

3.06

Interest-earning assets

6.28

6.20

6.12

5.97

Interest-bearing deposits

3.19

3.14

3.03

2.77

2.26

Deposits

2.16

2.13

2.03

1.84

1.46

Subordinated debentures and notes

6.91

6.40

6.30

6.28

6.27

FHLB advances and other borrowed funds

3.52

3.80

3.06

2.76

3.45

Interest-bearing liabilities

3.26

3.22

3.09

2.84

2.40

Net interest margin

4.19

4.13

4.23

4.33

4.49

1Refer to Reconciliations of Non-GAAP Financial Measures tables 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)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

ASSET QUALITY

Net charge-offs

605

5,864

28,479

6,856

2,973

Nonperforming loans

39,384

35,642

43,728

48,932

16,112

Classified assets

169,822

185,150

185,389

184,393

108,065

Nonperforming loans to total loans

0.36

0.32

0.40

0.46

0.15

Nonperforming assets to total assets

0.33

0.30

0.34

0.40

0.12

Allowance for credit losses to total loans

1.27

1.23

1.24

1.34

Allowance for credit losses to total loans, excluding guaranteed loans

1.38

1.34

1.35

1.47

1.48

Allowance for credit losses to nonperforming loans

354.1

380.2

308.2

290.5

877.1

Net charge-offs to average loans -annualized

0.02

0.22

1.06

0.26

0.12

WEALTH MANAGEMENT

Trust assets under management

2,367,409

2,352,902

2,235,073

2,129,408

1,992,563

SHARE DATA

Book value per common share

45.08

44.24

43.94

41.19

41.39

Tangible book value per common share1

35.02

34.21

33.85

31.06

31.23

Market value per share

40.91

40.56

44.65

37.50

39.10

Period end common shares outstanding

37,344

37,515

37,416

37,385

37,359

Average basic common shares

37,485

37,490

37,421

37,405

37,347

Average diluted common shares

37,540

37,597

37,554

37,520

37,495

CAPITAL

Total risk-based capital to risk-weighted assets2

14.6

14.3

14.2

14.1

Tier 1 capital to risk-weighted assets2

13.0

12.8

12.7

12.6

12.5

Common equity tier 1 capital to risk-weighted assets2

11.7

11.4

11.3

11.2

11.1

Tangible common equity to tangible assets1

9.18

9.01

8.96

8.51

8.65

1Refer to Reconciliations of Non-GAAP Financial Measures tables 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

Six months ended

($ in thousands)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

Jun 30, 2024

Jun 30, 2023

CORE EFFICIENCY RATIO

Net interest income (GAAP)

140,529

137,728

140,732

141,639

140,692

278,257

280,221

Tax-equivalent adjustment

2,047

2,040

1,915

2,061

2,062

4,087

4,103

Noninterest income (GAAP)

15,494

12,158

25,452

12,085

14,290

27,652

31,188

Less gain on sale of investment securities

—

220

—

381

Less gain (loss) on sale of other real estate owned

—

)

—

)

187

Core revenue (non-GAAP)

158,070

151,928

167,879

155,785

156,947

309,998

314,944

Noninterest expense (GAAP)

94,017

93,501

92,603

88,644

85,956

187,518

166,939

Less FDIC special assessment

—

625

2,412

—

625

—

Less core conversion expense

1,250

350

—

1,600

—

Less amortization on intangibles

944

1,047

1,108

1,118

1,136

1,991

2,375

Core noninterest expense (non-GAAP)

91,823

91,479

89,083

87,526

84,820

183,302

164,564

Core efficiency ratio (non-GAAP)

58.09

60.21

53.06

56.18

54.04

59.13

52.25

Quarter ended

(in thousands, except per share data)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO

Shareholders’ equity (GAAP)

1,755,273

1,731,725

1,716,068

1,611,880

1,618,233

Less preferred stock

71,988

Less goodwill

365,164

Less intangible assets

10,327

11,271

12,318

13,425

14,544

Tangible common equity (non-GAAP)

1,307,794

1,283,302

1,266,598

1,161,303

1,166,537

Less net unrealized losses on HTM securities, after tax

52,220

47,822

41,038

81,367

53,611

Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP)

1,255,574

1,235,480

1,225,560

1,079,936

1,112,926

Common shares outstanding

37,344

37,515

37,416

37,385

37,359

Tangible book value per share (non-GAAP)

35.02

34.21

33.85

31.06

31.23

Total assets (GAAP)

14,615,666

14,613,338

14,518,590

14,025,042

13,871,154

Less goodwill

365,164

Less intangible assets

10,327

11,271

12,318

13,425

14,544

Tangible assets (non-GAAP)

14,240,175

14,236,903

14,141,108

13,646,453

13,491,446

Tangible common equity to tangible assets (non-GAAP)

9.18

9.01

8.96

8.51

8.65

Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP)

8.82

8.68

8.67

7.91

8.25

Quarter Ended

Six months ended

($ in thousands)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

Jun 30, 2024

Jun 30, 2023

RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE)

Average shareholder’s equity (GAAP)

1,748,240

1,738,698

1,652,882

1,648,605

1,621,337

1,743,469

1,595,040

Less average preferred stock

71,988

Less average goodwill

365,164

Less average intangible assets

10,783

11,770

12,858

13,967

15,094

11,277

15,667

Average tangible common equity (non-GAAP)

1,300,305

1,289,776

1,202,872

1,197,486

1,169,091

1,295,040

1,142,221

Net income available to common shareholders (GAAP)

44,509

39,463

43,592

43,727

48,190

83,972

102,990

FDIC special assessment (after tax)

—

470

1,814

—

470

—

Core conversion expense (after tax)

940

263

—

1,203

—

Net income available to common shareholders adjusted (non-GAAP)

45,449

40,196

45,406

43,727

48,190

85,645

102,990

Return on average common equity (non-GAAP)

10.68

9.52

10.94

11.00

12.48

10.10

13.64

Adjusted return on average common equity (non-GAAP)

10.90

9.70

11.40

11.00

12.48

10.30

13.64

ROATCE (non-GAAP)

13.77

12.31

14.38

14.49

16.53

13.04

18.18

Adjusted ROATCE (non-GAAP)

14.06

12.53

14.98

14.49

16.53

13.30

18.18

Quarter ended

($ in thousands)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)

Net interest income

140,529

137,728

140,732

141,639

140,692

Noninterest income

15,494

12,158

25,452

12,085

14,290

FDIC special assessment

—

625

2,412

—

Core conversion expense

1,250

350

—

Less gain on sale of investment securities

—

220

—

Less gain (loss) on sale of other real estate owned

—

)

—

Less noninterest expense

94,017

93,501

92,603

88,644

85,956

PPNR (non-GAAP)

63,256

57,362

75,773

65,080

68,929

Quarter ended

($ in thousands)

Jun 30, 2024

Mar 31, 2024

CALCULATION OF ESTIMATED INSURED DEPOSITS

Estimated uninsured deposits per Call Report

4,020,979

4,062,505

Collateralized/affiliate deposits

(454,084

)

(515,439

)

Accrued interest on deposits

(5,632

)

(5,542

)

Adjusted uninsured/uncollateralized deposits

3,561,263

3,541,524

Estimated insured/collateralized deposits

8,721,120

8,712,177

Total deposits

12,282,383

12,253,701

Quarter ended

Six months ended

(in thousands, except per share data)

Jun 30, 2024

Mar 31, 2024

Dec 31, 2023

Sep 30, 2023

Jun 30, 2023

Jun 30, 2024

Jun 30, 2023

RETURN ON AVERAGE ASSETS AND DILUTED EARNINGS PER SHARE

Net income (GAAP)

45,446

40,401

44,529

44,665

49,127

85,847

104,865

FDIC special assessment (after tax)

—

470

1,814

—

470

—

Core conversion expense (after tax)

940

263

—

1,203

—

Net income adjusted (non-GAAP)

46,386

41,134

46,343

44,665

49,127

87,520

104,865

Less preferred stock dividends

937

938

937

938

937

1,875

Net income available to common shareholders adjusted (non-GAAP)

45,449

40,196

45,406

43,727

48,190

85,645

102,990

Average assets

14,646,381

14,556,119

14,332,804

14,068,860

13,671,985

14,601,250

13,403,084

Return on average assets (GAAP)

1.25

1.12

1.23

1.26

1.44

1.18

1.58

Adjusted return on average assets (non-GAAP)

1.27

1.14

1.28

1.26

1.44

1.21

1.58

Average diluted common shares

37,540

37,597

37,554

37,520

37,495

37,564

37,511

Adjusted diluted earnings per share (non-GAAP)

1.21

1.07

1.21

1.17

1.29

2.28

2.75

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722273829/en/

Investor Relations: Keene Turner, Senior Executive Vice President and CFO (314) 512-7233 Media: Steve Richardson, Senior Vice President, Corporate Communications (314) 995-5695

Enterprise Financial Ser... (NASDAQ:EFSC)
過去株価チャート
から 10 2024 まで 11 2024