Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q1 2025 Earnings Presentation
28 slides from Enterprise Financial Services's earnings presentation, Apr 29, 2025
Slide 1: 2025 First Quarter Earnings Webcast
Exhibit 99.2 Enterprise Financial Services Corp 2025 First Quarter Earnings Webcast
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 - 1Q25
Financial Highlights - 1Q25* • Net Income $50.0 million, up $1.1 million; EPS $1.31 • Net Interest Income $147.5 million, up $1.1 million; NIM 4.15% Earnings • PPNR** $66.1 million, down $3.4 million • Adjusted ROAA** 1.29%, compared to 1.31%; PPNR ROAA** 1.71%, compared to 1.80% • Adjusted ROATCE**
Slide 4: Financial Highlights, continued - 1Q25
Financial Highlights, continued - 1Q25* • Loans $11.3 billion, up $78.4 million Loans & • Loan/Deposit Ratio 86.7% Deposits • Deposits $13.0 billion, down $112.3 million or $169.8 million excluding brokered CDs • Noninterest-bearing Deposits/Total Deposits 33% • Nonperforming Loans/Loans 0.97% Asset
Slide 5: Strategic Branch Acquisition
Strategic Branch Acquisition Transaction Overview Arizona • Acquisition of 12 branches in Arizona and Kansas • No capital raise or share issuance required 10 Branches $161M Total Loans • Structured as a purchase and assumption agreement $656M Total • Expected to close by early fourth quarter of 2025
Slide 6: Loan Details
Loan Details $ In Millions LTM 1Q25 4Q24 1Q24 Qtr Change Change C&I $ 2,199 $ 2,139 $ 2,264 $ 60 $ (65) CRE Investor Owned 2,487 2,405 2,281 82 206 CRE Owner Occupied 1,292 1,305 1,280 (13) 12 SBA loans* 1,283 1,298 1,275 (15) 8 Sponsor Finance* 784 783 865 1 (81) Life Insurance Premium Financing* 1
Slide 7: Loans By Region
Loans By Region $ In Millions Specialty Lending Midwest Southwest West $4,109 $4,096 $3,918 $1,867 $1,855 $1,915 $1,784 $1,833 $3,412 $3,201 $3,153 $1,605 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 Note: Excludes “Other” loans; Region Components: Midwest (St. Louis & Kansas City), S
Slide 8: Deposit Details
Deposit Details $ In Millions LTM 1Q25 4Q24 1Q24 Qtr Change Change Noninterest-bearing demand accounts $ 4,285 $ 4,484 $ 3,805 $ (199) $ 480 Interest-bearing demand accounts 3,194 3,175 2,956 19 238 Money market accounts 3,632 3,564 3,431 68 201 Savings accounts 535 553 576 (18) (41) Certificates of
Slide 9: Deposits By Region
Deposits By Region $ In Millions Deposit Verticals Midwest* Southwest West* $6,433 $6,206 $6,187 $3,388 $3,522 $2,057 $2,096 $1,886 $2,901 $1,261 $1,268 $1,229 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 Note: Region Components: Midwest (St. Louis & Kansas City), Southwest (AZ, NM, L
Slide 10: Differentiated Deposit Verticals
Differentiated Deposit Verticals Third Party Escrow and Trust Services • $3.52 billion - 27% of total deposits 23.5% • $3.60 billion - Average deposits for 1Q25 • $23.8 million - Related deposit costs in noninterest expense, resulting in an average deposit vertical cost of 2.68% in 1Q25 Property Man
Slide 11: Core Funding Mix
Core Funding Mix Commercial Business Banking Consumer Deposit Verticals $ In Millions $4,583 $1,535 $2,613 $3,522 5% 7% 29% 19% 18% 29% 37% 1Q25 32% 31% 18% 6% 64% 35% 36% 25% DDA NOW MMA SAV CD 1 yr or less CD > 1 yr Overview Total Portfolio Average Account Size & Cost of Funds BUSINESS DEPOSIT • ~
Slide 12: Earnings Per Share Trend - 1Q25
Earnings Per Share Trend - 1Q25 Change in Diluted EPS $0.02 $0.04 $0.02 $0.01 $(0.05) $(0.01) $1.28 $1.31 4Q24 Net Interest Noninterest Provision for Credit Noninterest Change in ETR Change in Shares 1Q25 Income Income Losses Expense 12
Slide 13: Net Interest Income Trend
Net Interest Income Trend $ In Millions Stable Net Interest Income $143.5 $146.4 $147.5 $137.7 $140.5 5.33% 5.33% 5.27% 4.66% 4.33% 4.13% 4.19% 4.17% 4.13% 4.15% 1Q24 2Q24 3Q24 4Q24 1Q25 Net Interest Income Net Interest Margin Avg Fed Funds Rate 1Q24 2Q24 3Q24 4Q24 1Q25 Net Interest Income - FTE $ 1
Slide 14: Net Interest Margin
Net Interest Margin Margin Bridge 0.10% 0.16% (0.11)% (0.11)% (0.02)% 4.13% 4.15% 4Q24 Loans Securities Other Earning Asset Mix Funding Mix Cost of Funds 1Q25 Components of Interest-earning Assets Components of Interest-bearing Liabilities 6.87% 6.95% 6.95% 6.73% 6.57% 3.22% 3.26% 3.28% 3.02% 2.84%
Slide 15: Credit Trends
Credit Trends Annualized Net Charge-offs (Recoveries) to Average Loans Loan Growth and Average Line of Credit Utilization 44.4% 45.8% 44.1% 41.5% 41.9% $ In Millions 26 bps 14 bps $144 $140 2 bps $80 $78 22 bps (4) bps $(29) 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Organic Loans Avg Line Dr
Slide 16: Allowance for Credit Losses for Loans
Allowance for Credit Losses for Loans Key Assumptions: 1Q25 • Reasonable and supportable forecast Loans ACL ACL as a % of Loans period is one year with a one year $ In Millions reversion period. Commercial and industrial $ 4,730 $ 70 1.48 % • Forecast considers a weighted Commercial real estate 5,04
Slide 17: Noninterest Income Trend
Noninterest Income Trend $ In Millions Noninterest Income Other Noninterest Income Detail $8.3 9.9% 13.0% 12.4% 11.1% 8.1% $3.2 $6.4 $21.4 $20.6 $2.6 $18.5 $5.0 $1.9 $2.7 $4.7 $15.5 $2.6 $2.7 $0.6 $2.5 $0.3 $12.2 $1.4 $4.0 $2.4 $0.3 $0.7 $2.6 $4.6 $2.6 $4.7 $0.4 $1.2 $2.5 $0.2 $1.0 $4.4 $0.3 $0.7 $2
Slide 18: Noninterest Expense Trend
Noninterest Expense Trend $ In Millions Noninterest Expense Other Noninterest Expense Detail 60.2% 58.1% 58.4% 57.1% 58.8% $98.0 $99.5 $99.8 $24.2 $93.5 $94.0 $23.0 $23.4 $22.6 $22.3 $0.9 $0.9 $0.9 $1.0 $0.9 $2.1 $2.2 $2.2 $2.1 $2.3 $3.1 $45.4 $46.2 $48.2 $3.3 $3.1 $44.5 $3.0 $3.1 $45.3 $1.6 $1.7 $1
Slide 19: Capital
Capital Tangible Common Equity/Tangible Assets TBV and Dividends per Share $0.25 $0.26 $0.27 $0.28 $0.29 9.50% 9.30% $37.26 $37.27 $38.54 9.18% $34.21 $35.02 9.01% 9.05% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Tangible Common Equity/Tangible Assets* TBV/Share* Dividends per Share Regulator
Slide 20: Appendix
Zz ENTERPRISE W. Financial Services Corp \N Appendix
Slide 21: Investment Portfolio
Investment Portfolio Investment Portfolio Breakout AFS & HTM Securities $ In Millions Obligations of U.S. Government- Obligations of $2,400 $100 sponsored states and political enterprises subdivisions 8% 42% $1,600 $— U.S. Treasury bills TOTAL 4% $3.0 billion $800 $(100) Corporate debt securities 5%
Slide 22: Liquidity
Liquidity Strong Liquidity Profile $ In Billions EFSC Borrowing Capacity 43% 42% 44% • $1.1 billion available FHLB capacity • $2.9 billion available FRB capacity $5.5 $5.7 $5.3 • $140.0 million in seven federal funds lines $1.6 $1.4 $1.3 • $1.6 billion in unpledged investment securities $0.1 $0.1 $0
Slide 23: Office CRE (Non-owner Occupied)
Office CRE (Non-owner Occupied) Total $531.1 million Office CRE Loans by Location Office CRE Loans by Industry Type Southwest 29.0% Real Estate/ Rental/Leasing 89.5% Midwest West 45.4% 21.6% Specialty 4.0% Health Care Other and Social 7.6% Assistance 2.9% • Average loan-to-origination value 52% Offi
Slide 24: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common e
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended March 31, December 31, September 30, June 30, March 31, ($ in thousands) 2025 2024 2024 2024 2024 STOCKHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY, TOTAL ASSETS TO TANGIBLE ASSETS, TANGIBLE BOOK VALUE PER COMMON SHARE, AND TANGIBLE COMMON EQU
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended March 31, December 31, September 30, June 30, March 31, ($ in thousands) 2025 2024 2024 2024 2024 RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE) AND RETURN ON AVERAGE ASSETS (ROAA) Average stockholder’s equity $ 1,863,272 $ 1,844,509 $ 1
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended March 31, December 31, September 30, June 30, March 31, ($ in thousands) 2025 2024 2024 2024 2024 ALLOWANCE COVERAGE RATIO ADJUSTED FOR GUARANTEED LOANS Loans (GAAP) $ 11,298,763 $ 11,220,355 $ 11,079,892 $ 11,000,007 $ 11,028,492 Less guar
Slide 28: Enterprise Financial Services Corp
og ENTERPRISE > Financial Services Corp \
Enterprise Financial Services — Q1 2025 Earnings Presentation on 6ix