22 slides from Enterprise Financial Services's earnings presentation, Jan 28, 2016
Slide 1: Enterprise Financial Services Corp 2015 Fourth Quarter Earnings Release
Enterprise Financial Services Corp 2015 FOURTH 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: 2015 Objectives – Successfully Accomplished
3 2015 OBJECTIVES – SUCCESSFULLY ACCOMPLISHED 2015 2014 GROW CORE EPS $1.66 $1.29 DRIVE QUALITY LOAN GROWTH $317 MM $297 MM ENHANCE CORE NET INTEREST INCOME $108 MM $98 MM DEFEND PORTFOLIO LOAN YIELDS 4.16% 4.25% MAINTAIN HIGH CREDIT QUALITY METRICS (NPLS) 0.33% 0.91% IMPROVE OPERATING LEVERAGE (EFF
Slide 4: Portfolio Loan Trends
4 PORTFOLIO LOAN TRENDS $2,434 $2,436 $2,543 $2,602 $2,751 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 In Millions
Slide 5: Commercial & Industrial Loan Trends
5 $1,264 $1,260 $1,329 $1,365 $1,484 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 COMMERCIAL & INDUSTRIAL LOAN TRENDS In Millions
Slide 6: Portfolio Loan Details
6 PORTFOLIO LOAN DETAILS 12/31/15 9/30/15 QTR CHANGE 12/31/14 YR CHANGE ENTERPRISE VALUE LENDING $ 350 $ 283 $ 67 $ 214 $ 136 C&I GENERAL 732 689 43 687 45 LIFE INSURANCE PREMIUM FINANCING 265 248 17 221 44 TAX CREDIT 137 145 (8) 142 (5) COMMERCIAL REAL ESTATE 932 902 30 885 47 RESIDENTIAL 197 189 8
Slide 7: Portfolio Loans by Region
7 PORTFOLIO LOANS BY REGION $1,387 $1,341 $1,338 $1,100 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 $1,450 12/31/2015 9/30/2015 12/31/2014 St. Louis $535 $541 $522 0 200 400 600 800 1000 1200 1400 12/31/2015 9/30/2015 12/31/2014 $190 $164 $139 0 500 1000 1500 12/31/2015 9/30/2015 12/31/2014 Arizona In
Slide 8: Deposit Trends
8 DEPOSIT TRENDS $2,492 $2,675 $2,692 $2,814 $2,785 25.8% 25.5% 24.5% 24.6% 25.8% -30.0% -5.0% 20.0% Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Deposits DDA % 2015 Growth Rate = 12%
Slide 9: Full Year Earnings Per Share Trend
9 FULL YEAR EARNINGS PER SHARE TREND $1.29 $0.29 < $0.01> $0.03 $0.06 $1.66 2014 YTD Net Interest Income Portfolio Loan Loss Provision Non Interest Income Non Interest Expense 2015 YTD In Millions CHANGES IN CORE EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
Slide 10: Full Year Earnings Per Share: Reported vs. Core EPS
10 FULL YEAR EARNINGS PER SHARE $22,387 $1.89 <$0.23> $1.66 EPS Non-Core Acquired Assets Core EPS In Millions * A Non GAAP Measure, Refer to Appendix for Reconciliation REPORTED VS. CORE EPS* 2015 YTD
Slide 11: Positive Momentum in Core Earnings Per Share
11 POSITIVE MOMENTUM IN CORE* EARNINGS PER SHARE $0.33 $0.35 $0.38 $0.44 $0.49 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 48% Core EPS Growth from Q4 2014 to Q4 2015
Slide 12: Earnings Per Share Trend – Fourth Quarter
12 EARNINGS PER SHARE TREND – FOURTH QUARTER $0.44 $0.05 $0.04 < $0.02> < $0.02> $0.49 Q3 '15 Net Interest Income Non Interest Income Non Interest Expense Income Tax Rate Q4 '15 In Millions CHANGES IN CORE EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
Slide 13: Core Net Interest Income Trends
13 CORE NET INTEREST INCOME TRENDS* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $25.7 $25.6 $26.3 $27.1 $28.7 3.45% 3.46% 3.46% 3.41% 3.50% 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 14: Credit Trends for Portfolio Loans
14 CREDIT TRENDS FOR PORTFOLIO LOANS 10 bps 25 bps 11 bps 2 bps -10 bps Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Net Charge-offs (1) 2014 NCO = 7 bps (1) Portfolio loans only, excludes PCI (Purchased Credit Impaired) loans $2.0 $1.6 $2.2 $0.6 $0.5 $- $0.6 $1.2 $1.8 $2.4 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15
Slide 15: Operating Expenses Trends
15 OPERATING EXPENSES TRENDS* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $20.2 $19.1 $19.0 $19.3 $20.0 62.8% 60.7% 57.6% 58.6% 56.1% -200.0% -180.0% -160.0% -140.0% -120.0% -100.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% -20 -5 10 25 Q4 '14 Q1 '15 Q
Slide 16: Financial Priorities
16 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 PRIORITIES 48% 12%
Slide 17: 2016 Objectives
17 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 18: Appendix
Appendix
Slide 19: Use of Non-GAAP Financial Measures
19 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 incom
Slide 20: Earnings Per Share: Reported vs. Core EPS Q4 2015
20 EARNINGS PER SHARE $22,387 $0.52 < $0.03> $0.49 EPS Non-Core Acquired Assets Core EPS In Millions * A Non GAAP Measure, Refer to Appendix for Reconciliation REPORTED VS. CORE EPS* Q4 2015
Slide 21: Reconciliation of Non-GAAP Financial Measures
21 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31, (in thousands) 2015 2015 2015 2015 2014 2015 2014 CORE PERFORMANCE MEASURES Net interest income 32,079$ 30,006$ 29,280$ 29,045$ 30,816$ 120,410$ 117,368$ Less: Incremental accretion income 3,412
Slide 22: Q & A Fourth Quarter Earnings Release
22 Q & A FOURTH QUARTER EARNINGS RELEASE