19 slides from Enterprise Financial Services's earnings presentation, Apr 28, 2016
Slide 1: Enterprise Financial Services Corp 2016 First Quarter Earnings Release
Enterprise Financial Services Corp 2016 FIRST QUARTER EARNINGS RELEASE
Slide 2: Forward-Looking Statements
2 Some of the information in this report contains “forward-looking statements” within the meaning of and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified with use of terms such as “ma
Slide 3: 2016 Objectives
3 SUSTAIN CORE GROWTH TRENDS CONTINUE INVESTMENT IN BANKING BUSINESS – SOLIDIFY LOAN AND DEPOSIT GENERATION CAPABILITIES ELEVATE FOCUS ON GROWTH IN WEALTH & OTHER FEE BUSINESSES 2016 OBJECTIVES
Slide 4: Portfolio Loan Trends
4 PORTFOLIO LOAN TRENDS $2,436 $2,543 $2,602 $2,751 $2,833 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 In Millions
Slide 5: Commercial & Industrial Loan Trends
5 $1,260 $1,329 $1,365 $1,484 $1,545 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 COMMERCIAL & INDUSTRIAL LOAN TRENDS In Millions
Slide 6: Portfolio Loan Details
6 PORTFOLIO LOAN DETAILS 3/31/16 12/31/15 QTR CHANGE 3/31/15 LTM CHANGE ENTERPRISE VALUE LENDING $ 360 $ 350 $ 10 $ 229 $ 131 C&I GENERAL 760 732 28 665 95 LIFE INSURANCE PREMIUM FINANCING 272 265 7 230 42 TAX CREDIT 153 137 16 136 17 COMMERCIAL REAL ESTATE 949 932 17 890 59 RESIDENTIAL 202 197 5 18
Slide 7: Portfolio Loans by Region
7 PORTFOLIO LOANS BY REGION $1,427 $1,387 $1,335 $1,100 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 $1,450 3/31/2016 12/31/2015 3/31/2015 St. Louis $532 $535 $503 0 200 400 600 800 1000 1200 1400 3/31/2016 12/31/2015 3/31/2015 $188 $190 $139 0 500 1000 1500 3/31/2016 12/31/2015 3/31/2015 Arizona In Mi
Slide 8: Deposit Trends
8 DEPOSIT TRENDS $2,675 $2,692 $2,814 $2,785 $2,932 25.5% 24.5% 24.6% 25.8% 24.5% -30.0% -5.0% 20.0% Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Deposits DDA % LTM Growth Rate = 10%
Slide 9: Earnings Per Share: Reported vs. Core EPS
9 EARNINGS PER SHARE $22,387 $0.54 <$0.07 > $0.47 EPS Non-Core Acquired Assets Core EPS In Millions * A Non GAAP Measure, Refer to Appendix for Reconciliation REPORTED VS. CORE EPS* Q1 2016 Loss share extinguishment charge from Q4 2015 earned back 100% in Q1 2016
Slide 10: Earnings Per Share Trend
10 EARNINGS PER SHARE TREND $0.49 $0.03 < $0.01> < $0.03 > < $0.01 > $0.47 Q4 '15 Net Interest Income Portfolio Loan Loss Provision Non Interest Income Non Interest Expense Q1 '16 In Millions CHANGES IN CORE EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
Slide 11: Positive Momentum in Core Earnings Per Share
11 POSITIVE MOMENTUM IN CORE* EARNINGS PER SHARE $0.35 $0.38 $0.44 $0.49 $0.47 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 34% Core EPS Growth from Q1 2015 to Q1 2016 Two-year CAGR – 30%
Slide 12: Core Net Interest Income Trends
12 CORE NET INTEREST INCOME TRENDS* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $25.6 $26.3 $27.1 $28.7 $29.6 3.46% 3.46% 3.41% 3.50% 3.54% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $18.0 $19.0 $20.0 $21.0 $22.0 $23.0 $24.0 $25.0 $26.0 $27.0 $28.0 $29.0 $30.0 Q
Slide 13: Credit Trends for Portfolio Loans
13 CREDIT TRENDS FOR PORTFOLIO LOANS 25 bps 11 bps 2 bps -10 bps -1 bps Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Net Charge-offs (1) (1) Portfolio loans only, excludes PCI (Purchased Credit Impaired) loans $1.6 $2.2 $0.6 $0.5 $0.8 $- $0.6 $1.2 $1.8 $2.4 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Provision for Por
Slide 14: Operating Expenses Trends
14 OPERATING EXPENSES TRENDS* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $5.9 $6.1 $6.2 $6.5 $6.1 $1.7 $1.6 $1.6 $1.7 $1.7 $11.5 $11.3 $11.5 $11.8 $12.6 60.7% 57.6% 58.6% 56.1% 57.4% 0 5 10 15 20 25 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Other Occupancy Employee compens
Slide 15: Financial Scorecard
15 CONTINUED GROWTH IN CORE EPS DRIVE NET INTEREST INCOME GROWTH IN DOLLARS WITH FAVORABLE LOAN GROWTH TRENDS DEFEND NET INTEREST MARGIN MAINTAIN HIGH QUALITY CREDIT PROFILE ACHIEVE FURTHER IMPROVEMENT IN OPERATING LEVERAGE ENHANCE DEPOSIT LEVELS TO SUPPORT GROWTH FINANCIAL SCORECARD 34% 16% 8
Slide 16: Appendix
Appendix
Slide 17: Use of Non-GAAP Financial Measures
17 USE OF NON-GAAP FINANCIAL MEASURES The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net inter
Slide 18: Reconciliation of Non-GAAP Financial Measures
18 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (in thousands) 2016 2015 2015 2015 2015 CORE PERFORMANCE MEASURES Net interest income 32,428$ 32,079$ 30,006$ 29,280$ 29,045$ Less: Incremental accretion income 2,834 3,412 2,919 3,003 3,458 Core net interest in
Slide 19: Q & A First Quarter 2016 Earnings Release
19 Q & A FIRST QUARTER 2016 EARNINGS RELEASE