Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q4 2021 Earnings Presentation
23 slides from Enterprise Financial Services's earnings presentation, Jan 24, 2022
Slide 1: 2021 Fourth Quarter Earnings Webcast
Enterprise Financial Services Corp 2021 Fourth 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 - 4Q21
Financial Highlights - 4Q21 Capital • Tangible Common Equity/Tangible Assets* 8.13%; Adjusted for PPP* 8.31% • Quarterly dividend of $0.20 per share, increased 5% to $0.21 in first quarter 2022 • Repurchased 577,478 shares at an average price of $47.65 per share • Redeemed $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 Talent Acquisitions to Accelerate Higher Growth Specialty Segments and Geographic Markets Expand Strategic Approach to Loan Participations Expand Tax Credit Business, Geographically • Awarded $60 milli
Slide 5: Total Loan Trends
In Millions 25% Total Loan Growth PPP* $613 PPP $397 *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 First Choice $1,944 Total Loan Trends PPP** $233 PPP $738 PPP $272 5
Slide 6: Loan Details - LTM
Loan Details - LTM 4Q21 4Q20 LTM Change First Choice Net Organic Change C&I $ 1,538 $ 1,103 $ 435 $ 299 $ 136 CRE, Investor Owned 1,955 1,421 534 554 (20) CRE, Owner Occupied 1,113 826 287 291 (4) SBA loans*1 1,241 896 345 164 181 Sponsor Finance* 508 396 112 — 112 Life Insurance Premium Financing*
Slide 7: Loan Details - QTR
Loan Details - QTR 4Q21 3Q21 QTR Change C&I $ 1,538 $ 1,458 $ 80 CRE, Investor Owned 1,955 1,935 20 CRE, Owner Occupied 1,113 1,163 (50) SBA loans*1 1,241 1,200 41 Sponsor Finance* 508 455 53 Life Insurance Premium Financing* 594 573 21 Tax Credits* 487 462 25 Residential Real Estate 431 520 (89) Co
Slide 8: Total Loans By Business Unit
Total Loans By Business Unit In Millions Note: Excludes PPP and Other loans **3Q21 includes First Choice acquisition *3Q21 includes acquired First Choice SBA loans 8
Slide 9: Specialty Deposits
Specialty Deposits Community Associations $658 million in deposit accounts specifically designed to serve the needs of community associations. Property Management $444 million in deposits. Specializing in the compliance of Property Management Trust Accounts. Third-Party Escrow $441 million in deposi
Slide 10: Earnings Per Share Trend - 4Q21
Earnings Per Share Trend - 4Q21 Change in EPS 10
Slide 11: Net Interest Income Trend
Net Interest Income Trend In Millions 32% NII Growth PPP Income $10.3 PPP Income $4.9 PPP Income $8.5 PPP Income $7.9 PPP Income $6.0 * First Choice acquisition completed 7/21/21. 11
Slide 12: Net Interest Margin
Net Interest Margin Components of Interest-bearing LiabilitiesComponents of Interest-earning Assets 3Q21 3.40 % Cash/Liquidity (0.09) % Loans 0.03 % Investments (0.03) % Cost of Funds 0.01 % 4Q21 3.32 % Net Interest Margin Trend Net Interest Margin Bridge 12
Slide 13: Credit Trends for Loans
Credit Trends for Loans 4Q21 3Q21 4Q20 NPAs/Assets 0.23% 0.35% 0.45% NPLs/Loans 0.31% 0.46% 0.53% ACL/NPLs 517.6% 366.0% 354.9% ACL/Loans** 1.84% 1.94% 2.31% Annualized Net Charge-offs (Recoveries) to Average Loans In Millions bps bps bps bps bps In Millions Loan Growth and Average Line of Credit Ut
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 4Q21 In Thousands Loans ACL ACL as a % of Loans Comme
Slide 15: Noninterest Income Trend
Noninterest Income Trend Other Fee Income DetailFee Income In Millions 19.3% 12.5% 16.5% 15.3% 18.1% 15
Slide 16: Operating Expenses Trend
Operating Expenses Trend Other Operating Expenses DetailOperating Expenses In Millions 50.9% 55.2% 51.9% 51.3% 49.2% 16
Slide 17: Capital
Capital *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Excludes PPP loans. 8.0% 12.1% 12.3% 12.3% 12.2% 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 Fourth 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) Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,529,116 $ 1,439,635 $ 1,118,301 $ 1,092,497 $ 1,07
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 Noninterest income 22,630 17,619 16,204 11,290 18,5
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended Year ended ($ in thousands) Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020 CORE PERFORMANCE MEASURES Net interest income $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 360,194 $ 270,001 Less incr
Slide 23: Q & A
Q & A Fourth Quarter 2021 Earnings Webcast
Enterprise Financial Services — Q4 2021 Earnings Presentation on 6ix