Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q2 2016 Earnings Presentation
19 slides from Enterprise Financial Services's earnings presentation, Jul 28, 2016
Slide 1: 2016 Second Quarter Earnings Release
Enterprise Financial Services Corp 2016 SECOND 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: 2016 Objectives
3 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 4: Portfolio Loan Trends
4 PORTFOLIO LOAN TRENDS $2,543 $2,602 $2,751 $2,833 $2,884 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 In Millions
Slide 5: Commercial & Industrial Loan Trends
5 $1,329 $1,365 $1,484 $1,545 $1,541 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 COMMERCIAL & INDUSTRIAL LOAN TRENDS In Millions
Slide 6: Portfolio Loan Details
6 PORTFOLIO LOAN DETAILS 6/30/16 3/31/16 QTR CHANGE 6/30/15 LTM CHANGE ENTERPRISE VALUE LENDING $ 354 $ 360 $ (6) $ 272 $ 82 C&I GENERAL 738 760 (22) 685 53 LIFE INSURANCE PREMIUM FINANCING 296 272 24 239 57 TAX CREDIT 153 153 0 133 20 COMMERCIAL REAL ESTATE 971 949 22 910 61 RESIDENTIAL 211 202 9 1
Slide 7: Portfolio Loans by Business Unit
7 PORTFOLIO LOANS BY BUSINESS UNIT $1,338 $1,387 $1,432 $1,100 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 $1,450 6/30/2015 12/31/2015 6/30/2016 St. Louis $544 $535 $549 0 200 400 600 800 1000 1200 1400 6/30/2015 12/31/2015 6/30/2016 $150 $190 $190 0 500 1000 1500 6/30/2015 12/31/2015 6/30/2016 Arizon
Slide 8: Deposit Trends
8 DEPOSIT TRENDS $2,692 $2,814 $2,785 $2,932 $3,028 24.5% 24.6% 25.8% 24.5% 24.9% -30.0% -5.0% 20.0% 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 Deposits DDA % Last Twelve Months Growth Rate = 13%
Slide 9: Earnings Per Share: Reported vs. Core EPS Q2 2016
9 EARNINGS PER SHARE $0.61 < $0.14> $0.02 $0.49 EPS Non-Core Acquired Assets Other Non-Core Expenses Core EPS In Millions * A Non GAAP Measure, Refer to Appendix for Reconciliation REPORTED VS. CORE EPS* Q2 2016
Slide 10: Earnings Per Share Trend
10 EARNINGS PER SHARE TREND $0.47 $0.02 $0.49 Q1 '16 Net Interest Income Q2 '16 In Millions CHANGES IN CORE EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
Slide 11: Core Net Interest Income Trend
11 CORE NET INTEREST INCOME TREND* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $26.3 $27.1 $28.7 $29.6 $30.2 3.46% 3.41% 3.50% 3.54% 3.52% 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 $3
Slide 12: Credit Trends for Portfolio Loans
12 CREDIT TRENDS FOR PORTFOLIO LOANS 11 bps 2 bps -10 bps -1 bps -6 bps Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Net Charge-offs (1) (1) Portfolio loans only, excludes PCI (Purchased Credit Impaired) loans Q2 2016 EFSC PEER(2) NPA’S/ASSETS = 0.47% 0.76% NPL’S/LOANS = 0.44% 0.94% ALLL/NPL’S = 277% 116% ALL
Slide 13: Operating Expenses Trend
13 OPERATING EXPENSES TREND* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $6.1 $6.2 $6.5 $6.1 $6.5 $1.6 $1.6 $1.7 $1.7 $1.6 $11.3 $11.5 $11.8 $12.6 $12.3 57.6% 58.6% 56.1% 57.4% 56.3% 0 5 10 15 20 25 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Other Occupancy Employee compensa
Slide 14: Financial Scorecard
14 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 SCORECARD 29% 15% 6
Slide 15: Positive Momentum in Core Earnings Per Share
15 POSITIVE MOMENTUM IN CORE* EARNINGS PER SHARE $0.28 $0.31 $0.37 $0.33 $0.35 $0.38 $0.44 $0.49 $0.47 $0.49 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 29% Core EPS Growth from Q2 2015 to Q2 2016
Slide 16: Appendix
Appendix
Slide 17: Use of Non-GAAP Financial Measures
17 USE OF NON-GAAP FINANCIAL MEASURES The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net inter
Slide 18: Reconciliation of Non-GAAP Financial Measures
18 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30, (in thousands) 2016 2016 2015 2015 2015 2016 2015 CORE PERFORMANCE MEASURES Net interest income 33,783$ 32,428$ 32,079$ 30,006$ 29,280$ 66,211$ 58,325$ Less: Incremental accretion income 3,571 2,
Slide 19: Q & A Second Quarter 2016 Earnings Webcast
19 Q & A SECOND QUARTER 2016 EARNINGS WEBCAST
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