Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Investor Presentation (February 2025)
36 slides from Enterprise Financial Services's investor presentation, Feb 11, 2025
Slide 1: Investor Presentation January 2025
Investor Presentation January 2025 Exhibit 99.1
Slide 2: Forward-Looking Statements
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
Slide 3: EFSC's Unique Value Proposition
3 Empowered associates providing industry-leading service, supported by digital technology solutions Tenured and experienced management team Strong capital foundation and consistent history of delivering results Differentiated strategies delivering growth Focused commercial bank, diversified across
Slide 4: EFSC Overview
EFSC Overview Zo ISTRERISE
Slide 5: Differentiated Business Model
5 Differentiated Business Model Focused on privately owned businesses and business owners Commercial Deposits • Highly productive network of 42 branches with $232M2 average deposits per branch • Complete and easy-to-use cash management services Deposit Verticals • Community associations • Property m
Slide 6: Since 2013, Continually Optimizing Performance
6 Midwest-focused FDIC-assisted acquisitions Expanded deposit base Expanded footprint through four acquisitions Delivered performance improvements Tackled challenges, including COVID and bank liquidity crisis Aligned incentives Diversified across geographies and verticals Consistent growth Compoundi
Slide 7: Diversified Deposit Base
7 $13.1B Total Deposits Note: 4Q24 data Interest- Bearing Demand Accounts by Typeby Region Deposit Verticals 26% Southwest 15% Midwest 49% West 10% DDA 34% MMA & Savings 31% CD 11% Interest-Bearing Demand Accounts 24% Diversified Deposit Base
Slide 8: Balanced Loan Portfolio
8 CRE-IO 23% CRE-OO 21% C&I 42% Construction 8% Residential 3% Other 3% by Product Type $11.2B Total Loans 1Excluding "Other" loans by Region1 Specialty 38% Southwest 16% Midwest 29% West 17% Note: 4Q24 data Balanced Loan Portfolio
Slide 9: EFSC's Customer-Focused Culture
9 Aligned teams providing customer-focused solutions Vision: To be a company where our associates are proud to work, that delivers ease of navigation to our customers and value to our investors, while helping our communities flourish. Mission: Guiding people to a lifetime of financial success. EFSC’
Slide 10: Seasoned Executive Leadership Team
10 Jim Lally 57, President & Chief Executive Officer, EFSC Enterprise Tenure: 21 years Keene Turner 45, SEVP, Chief Financial Officer, EFSC Enterprise Tenure: 11 years Scott Goodman 61, SEVP, President, Enterprise Bank & Trust Enterprise Tenure: 21 years Doug Bauche 55, SEVP, Chief Credit Officer, E
Slide 11: Delivering Efficiency & Top Quartile NIM
11 • Focus on process excellence, automation, and scale • Completed core system conversion in 2024 • Continuing technology investments • Focus on client experience enhancement • Relentless cost discipline • Top quartile1 performance (2024) • NIM: 4.16% • Adjusted ROAA:2 1.26% 2A Non-GAAP Measure, Re
Slide 12: Effective Risk Management as a Key Enabler
12 Approach • Strong credit process • Effective controls • High quality assets • Well positioned for different rate environments Managing risk • Diversification across asset classes, geography, and industry • Reducing agriculture exposure over time • Well managed CRE concentration Nonperforming Loan
Slide 13: Growth Strategy
Growth Strategy Zo ISTRERISE
Slide 14: Strategic Growth Pillars
14 Focused loan growth strategies High-quality talent additions through focused efforts Best-in-class technology partnerships Differentiated deposit verticals Well positioned in attractive markets1. 2. 3. 4. 5. Strategic Growth Pillars
Slide 15: Well-Positioned in Attractive Markets
15 Significant opportunities for growth and share gain in our markets Region Total Deposits ($B) Total Loans ($B) Market Profile Metro Midwest $6.4 $3.2 Stable St. Louis Kansas City Southwest $2.0 $1.8 Stable Albuquerque Santa Fe Growth Phoenix Dallas Las Vegas West $1.3 $1.8 Growth Los Angeles San
Slide 16: Differentiated Deposit Verticals
16 27% 37% 36% Community Associations $1.2B in deposit accounts Specifically designed to serve the needs of community associations Property Management $1.2B in deposits Specializing in the compliance of Property Management Trust Accounts Legal Industry and Escrow Services $922M in deposits Product l
Slide 17: Focused Loan Growth Strategies
17 Lending verticals provide a competitive advantage, risk-adjusted pricing, and fee income opportunities SBA Loans • $1.3B in loans outstanding in SBA 7(a) loans, including $948M guaranteed Life Insurance Premium Finance • $1.1B in loans outstanding related to high-net-worth estate planning Sponsor
Slide 18: Food Manufacturer Boosts Production and Sales with Enterprise
18 Food Manufacturer Boosts Production and Sales with Enterprise as Its Partner OPPORTUNITY Food manufacturer faced inflation and capacity challenges • Client needed a way to increase capacity and production efficiency to keep up with inflation and increased customer demand • Client was unsure of ho
Slide 19: High-Quality Talent Additions Through Focused Efforts
19 Additional talent delivering deposit and loan growth 11: Los Angeles 10: San Diego 5: Phoenix & Las Vegas Talent acquisitions between 2021 & 2024 4. High-Quality Talent Additions Through Focused Efforts 26 Producers Opportunistically Hired: Adds Density and Capability in Focus Geographies
Slide 20: Best-In-Class Technology Partnerships
20 Leading technology solutions support growth and deliver best-in-class client experience TARGET ONBOARD SERVICE PROTECT GROW Customer Surveys Salesforce Integrated with Core for 360 Client View Client Portal Positive Pay (Check & ACH) Integrations for APIs for HOA/PM Successful Conversion to FIS L
Slide 21: Financial Overview and Outlook
Financial Overview and Outlook
Slide 22: Our Focused Strategy is Generating Growth
221A Non-GAAP Measure, Refer to Appendix for Reconciliation Pre-Provision Net Revenue1 $ in Millions Pre-Provision Net Revenue ROAA1 $207 $259 $285 $255 2021 2022 2023 2024 1.80% 1.94% 2.06% 1.72% 2021 2022 2023 2024 Our Focused Strategy is Generating Growth
Slide 23: Consistently Growing and Creating Value
23 Loan & Deposits Trends ($B) $2.4 $11.2 $2.5 $13.1 EFSC Loans EFSC Deposits 2014 2024 Balance sheet growth driving earnings growth 10-Year TBV CAGR510-Year TTM4 EPS CAGR5 110-Year CAGR from 4Q14 – 4Q24; 210.6% excluding acquisitions; 312.5% excluding acquisitions and brokered CDs 4TTM – Trailing T
Slide 24: Flexible Balance Sheet Positioned for Growth
24 $6.3B Available Liquidity 60% Adjustable Rate Loans3 11.8% CET1 Ratio1 85% Loans to Deposits Note: 4Q24 data; 110.4% adjusting for unrealized losses on securities. These are non-GAAP measures, refer to appendix for reconciliation 28.71% adjusted for unrealized losses on held-to-maturity securitie
Slide 25: Low Cost, Highly Flexible Capital Strategy
25 High Capital Retention Rate • Strong earnings profile • Sustainable dividend profile Support 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 (prefe
Slide 26: M&A Track Record and Growth History
26 $5.3 $5.6 $7.3 $9.8 $13.5 $13.1 $14.5 $15.6 $4.4 $6.1 $8.5 $11.3 $0.9 $1.2 $1.3 $2.2 Merger Contribution EFSC Assets 2017 2018 2019 2020 2021 2022 2023 2024 Strategically enhanced geographic diversification and product lines through select M&A transactions Growth History $ in Billions Granular, l
Slide 27: Compelling Opportunities for Future Value Creation
27 Maximizing returns on investment Systems People Markets Deliver compounding tangible book value Consistent, reliable performance Continuously refining and improving Driving efficiency Optimizing processes Realizing system returns Grow balance sheet mid-single-digit % to high-single-digit % annual
Slide 28: Invest with EFSC
28 Empowered associates providing industry-leading service, supported by digital technology solutions Tenured and experienced management team Strong capital foundation and consistent history of delivering results Differentiated strategies delivering growth Focused commercial bank, diversified across
Slide 29: Enterprise Financial Services Corp
ENTERPRISE Financial Services Corp
Slide 30: Sustainability and Community Involvement
30 • Selected by the Community Development Financial Institutions Fund (CDFI Fund) of the U.S. Department of the Treasury to receive $353M of New Markets Tax Credits allocations since 2011 • In 2023, our portfolio included the financing of over $2.1B in small business, small farm and community devel
Slide 31: Non-GAAP Financial Measures
31 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, the tangible common equit
Slide 32: Tangible Common Equity Ratio Reconciliation
32 At (in thousands, except per share data) December 31, 2024 Shareholders' equity (GAAP) $ 1,824,002 Less preferred stock 71,988 Less goodwill 365,164 Less intangible assets 8,484 Tangible common equity (non-GAAP) $ 1,378,366 Less net unrealized loss on HTM securities, after tax1 52,881 Tangible co
Slide 33: CET1 Ratio Adjusted For Unrealized Loss
33 At (in thousands, except per share data) December 31, 2024 CET1 capital $ 1,505,162 Less unrealized loss on investment portfolio, after tax1 175,013 CET1 capital excluding unrealized loss (gain) on securities $ 1,330,149 Total risk-weighted assets $ 12,753,383 CET1 capital / risk-weighted assets
Slide 34: PPNR & PPNR ROAA Reconciliation
34 Year ended ($ in thousands) 2024 2023 2022 2021 Net interest income $ 568,096 $ 562,592 $ 473,903 $ 360,194 Noninterest income 69,703 68,725 59,162 67,743 FDIC special assessment 625 2,412 — — Core conversion expense 4,868 — — — Branch closure expense — — — 3,441 Merger-related expense — — — 22,0
Slide 35: Allowance Coverage Ratio Adjusted for Guaranteed Loans
35 Allowance Coverage Ratio Adjusted for Guaranteed Loans At ($ in thousands) December 31, 2024 Loans (GAAP) $ 11,220,355 Less guaranteed loans, net 947,665 Adjusted loans (non-GAAP) $ 10,272,690 Allowance for credit losses on loans (GAAP) $ 137,950 Allowance for credit losses on loans / total loans
Slide 36: ROATCE and ROAA Reconciliation
36 Return on Average Tangible Common Equity (ROATCE) and Return on Average Assets (ROAA) Quarter ended Year ended ($ in thousands) December 31, 2024 December 31, 2024 Average shareholder’s equity $ 1,844,509 $ 1,784,175 Less average preferred stock 71,988 71,988 Less average goodwill 365,164 365,164
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