Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q3 2021 Earnings Presentation
23 slides from Enterprise Financial Services's earnings presentation, Oct 25, 2021
Slide 1: 2021 Third Quarter Earnings Webcast
Enterprise Financial Services Corp 2021 Third Quarter Earnings Webcast Exhibit 99.2
Slide 2: Forward-Looking Statements
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 b
Slide 3: Financial Highlights - 3Q21
Financial Highlights - 3Q21 Capital • Tangible Common Equity/Tangible Assets* 8.40%; Adjusted for PPP* 8.71% • Quarterly dividend of $0.19 per share, increased 5% to $0.20 in fourth quarter 2021 • Repurchased 470,412 shares at an average price of $45.15 per share • Redeem $50.0 million subordinated
Slide 4: Areas of Focus
Areas of Focus Organic Loan Growth and Pipeline Leverage Position as Top 10 SBA Lender in 7a Loans • Flexibility in holding or selling 7a loans Talent Acquisitions to Accelerate Higher Growth Specialty Segments and Geographic Markets Expand Strategic Approach to Loan Participations Expand Tax Credit
Slide 5: Total Loan Trends
Total Loan Trends In Millions 49% Total Loan Growth PPP $819 PPP* $613 PPP $738 *Excludes Seacoast PPP loans of $86 million included in acquisition total. **Excludes First Choice PPP loans of $206 million included in acquisition total. Seacoast $1,224 PPP $397 First Choice $1,944 PPP** $233 5
Slide 6: Loan Details - QTR
Loan Details - QTR 3Q21 2Q21 QTR Change First Choice2 Net Organic Change C&I $ 1,458 $ 1,116 $ 342 $ 243 $ 99 CRE, Investor Owned 1,935 1,467 468 553 (85) CRE, Owner Occupied 1,163 789 374 302 72 SBA loans*1 1,200 1,011 189 161 28 Sponsor Finance* 455 464 (9) — (9) Life Insurance Premium Financing*
Slide 7: Loan Details - LTM
Loan Details - LTM 3Q21 3Q20 LTM Change First Choice Seacoast Net Organic Change C&I $ 1,458 $ 1,075 $ 383 $ 243 $ — $ 140 CRE, Investor Owned 1,935 1,282 653 553 24 76 CRE, Owner Occupied 1,163 767 396 302 68 26 SBA loans*1 1,200 16 1,184 161 983 40 Sponsor Finance* 455 367 88 — — 88 Life Insurance
Slide 8: Total Loans By Business Unit
Total Loans By Business Unit In Millions Note: Excludes PPP and Other loans **Acquisition of Seacoast closed on November 12, 2020. Acquisition of First Choice closed on July 21, 2021. *2Q21 includes acquired Seacoast SBA loans 3Q21 includes acquired First Choice SBA loans 8
Slide 9: Specialty Deposits
Specialty Deposits Community Associations $585 million in deposit accounts specifically designed to serve the needs of community associations. Property Management $430 million in deposits. Specializing in the compliance on Property Management Trust Accounts. Third-Party Escrow $263 million in deposi
Slide 10: Earnings Per Share Trend - 3Q21
Earnings Per Share Trend - 3Q21 Change in EPS 10
Slide 11: Net Interest Income Trend
Net Interest Income Trend In Millions 53% NII Growth PPP Income $10.3 PPP Income $5.2 PPP Income $8.5 PPP Income $7.9 *Seacoast acquisition completed 11/12/20. ** First Choice acquisition completed 7/21/21. PPP Income $6.0 11
Slide 12: Net Interest Margin
Net Interest Margin Components of Interest-bearing LiabilitiesComponents of Interest-earning Assets 2Q21 3.46 % Cash/Liquidity (0.10) % Loans (0.08) % Cost of Funds 0.01 % First Choice 0.11 % 3Q21 3.40 % Net Interest Margin Trend Net Interest Margin Bridge 12
Slide 13: Credit Trends for Loans
Credit Trends for Loans 3Q21 2Q21 3Q20 NPAs/Assets 0.35% 0.44% 0.53% NPLs/Loans 0.46% 0.58% 0.65% ALLL/NPLs 366.0% 303.4% 311.1% ALLL/Loans** 1.94% 2.09% 2.32% Annualized Net Charge-offs (Recoveries) to Average Loans In Millions bps bps bps bps bps In Millions Loan Growth and Line of Credit Utilizat
Slide 14: Allowance for Credit Losses for Loans
Allowance for Credit Losses for Loans In Thousands • 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 3Q21 In Thousands ACL Loans ACL as a % of Loans Comme
Slide 15: Noninterest Income Trend
Noninterest Income Trend Other Fee Income DetailFee Income In Millions 16.6% 19.3% 12.5% 16.5% 15.3% 15
Slide 16: Operating Expenses Trend
Operating Expenses Trend * A Non-GAAP Measure, Refer to Appendix for Reconciliation In Millions 16
Slide 17: Capital
Capital *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Excludes PPP loans. 8.0% 11.4% 11.6% 12.1% 12.3% EFSC Capital Strategy: Low Cost - Highly Flexible High Capital Retention Rate – Strong earnings profile – Sustainable dividend profile Supporting Robust Asset Growth – Organic loan and
Slide 18: Appendix
Appendix Third Quarter 2021 Earnings Webcast
Slide 19: Use of Non-GAAP Financial Measures
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 e
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,439,635 $ 1,118,301 $ 1,092,497 $ 1,078,975 $ 882,
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 63,354 Noninterest income 17,619 16,204 11,290 18,506 12,62
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended Nine Months ended ($ in thousands) Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Sep 30, 2021 Sep 30, 2020 CORE PERFORMANCE MEASURES Net interest income $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 63,354 $ 258,134 $ 192,555 Les
Slide 23: Q & A
Q & A Third Quarter 2021 Earnings Webcast
Enterprise Financial Services — Q3 2021 Earnings Presentation on 6ix