Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q2 2022 Earnings Presentation
23 slides from Enterprise Financial Services's earnings presentation, Jul 25, 2022
Slide 1: Enterprise Financial Services Corp 2022 Second Quarter Earnings Webcast
Enterprise Financial Services Corp 2022 Second 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 - 2Q22
Financial Highlights - 2Q22 Capital • Tangible Common Equity/Tangible Assets* 7.80%; Adjusted for PPP* 7.83% • Accumulated other comprehensive income declined $49.2 million primarily from a decrease in the fair value of the available-for-sale investment portfolio • Quarterly dividend of $0.22 per co
Slide 4: Areas of Focus
Areas of Focus Completed Expand Tax Credit Business, Geographically • Strategically Deploy $60 Million, New Markets Tax Credit Allocation Talent Acquisitions to Accelerate Higher Growth • Complementary California Associates • Practice Finance • Phoenix • Texas Continued Integration of California Mar
Slide 5: Total Loan Trends
$7,226 $9,117 $9,018 $9,056 $9,269 2Q21 3Q21 4Q21 1Q22 2Q22 In Millions 28% Total Loan Growth *Excludes First Choice PPP loans of $206 million included in acquisition total. First Choice $1,944 Total Loan Trends PPP* $233 PPP $134 PPP $272 PPP $397 PPP $49 5
Slide 6: Loan Details - LTM
Loan Details - LTM 2Q22 2Q21 LTM Change First Choice Net Organic Change C&I $ 1,702 $ 1,116 $ 586 $ 328 $ 258 CRE Investor Owned 1,978 1,467 511 595 (84) CRE Owner Occupied 1,119 789 330 260 70 SBA loans* 1,284 1,011 273 155 118 Sponsor Finance* 647 464 183 — 183 Life Insurance Premium Financing* 68
Slide 7: Loan Details - QTR
Loan Details - QTR 2Q22 1Q22 QTR Change C&I $ 1,702 $ 1,498 $ 204 CRE Investor Owned 1,978 1,983 (5) CRE Owner Occupied 1,119 1,138 (19) SBA loans* 1,284 1,250 34 Sponsor Finance* 647 641 6 Life Insurance Premium Financing* 688 636 52 Tax Credits* 551 518 33 Residential Real Estate 392 410 (18) Cons
Slide 8: Total Loans By Business Unit
Total Loans By Business Unit Specialty Lending* $2,382 $2,981 $3,133 2Q21 1Q22 2Q22 In Millions St. Louis $2,106 $2,124 $2,207 2Q21 1Q22 2Q22 Southwest Region $480 $615 $658 2Q21 1Q22 2Q22 Kansas City $775 $806 $824 2Q21 1Q22 2Q22 New Mexico $595 $511 $488 2Q21 1Q22 2Q22 Note: Excludes PPP and Other
Slide 9: Specialty Deposits
Specialty Deposits 35.0% 22.4% 14.7% 2.7% 25.3% Community Associations $840 million in deposit accounts specifically designed to serve the needs of community associations. Property Management $539 million in deposits. Specializing in the compliance of Property Management Trust Accounts. Third-Party
Slide 10: Earnings Per Share Trend - 2Q22
Earnings Per Share Trend - 2Q22 $1.23 $0.08 $(0.10) $(0.05) $0.01 $0.02 $1.19 1Q22 Operating Revenue Provision for Credit Losses Noninterest Expense Preferred Stock Dividends Change in Shares 2Q22 Change in EPS 10
Slide 11: Net Interest Income Trend
$81.7 $97.3 $102.1 $101.2 $109.6 2Q21 3Q21* 4Q21 1Q22 2Q22 Net Interest Income Trend In Millions 34% NII Growth PPP Income $2.9 PPP Income $1.6 PPP Income $7.9 PPP Income $6.0 * First Choice acquisition completed 7/21/21. PPP Income $4.9 11
Slide 12: Net Interest Margin
Net Interest Margin 4.35% 4.32% 4.32% 4.34% 4.51% 2.46% 2.38% 2.30% 2.31% 2.51% 0.12% 0.15% 0.15% 0.19% 0.71% 3.70% 3.60% 3.50% 3.45% 3.76% Earning asset yield Interest-earning deposit yield Securities yield Loan yield 2Q21 3Q21 4Q21 1Q22 2Q22 0.18% 0.17% 0.17% 0.17% 0.24% 0.12% 0.11% 0.10% 0.10% 0.
Slide 13: Credit Trends for Loans
Credit Trends for Loans 5 8 14 7 (1) 2Q21 3Q21 4Q21 1Q22 2Q22 $278 $111 $68 $176 $298 $(341) $(164) $(167) $(138) $(85) 38.9% 38.2% 39.9% 39.9% 43.9% Organic Loans PPP Loans Avg Line Draw % 2Q21 3Q21 4Q21 1Q22 2Q22 2Q22 1Q22 2Q21 NPAs/Assets 0.16% 0.17% 0.44% NPLs/Loans 0.21% 0.23% 0.58% ACL/NPLs 71
Slide 14: Allowance for Credit Losses for Loans
$139.2 $1.5 $(0.2) $140.5 ACL 1Q22 Portfolio Changes Net Recoveries ACL 2Q22 Allowance for Credit Losses for Loans In Millions • 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 a
Slide 15: Noninterest Income Trend
Noninterest Income Trend Other Fee Income DetailFee Income In Millions $16.2 $17.6 $22.6 $18.6 $14.2 $2.5 $2.6 $2.7 $2.6 $2.5 $3.8 $4.5 $3.9 $4.2 $4.8 $3.0 $3.2 $3.2 $3.0 $3.5 $5.5 $4.0 $8.4 $6.2 $2.2 $1.4 $3.3 $4.4 $2.6 $1.2 16.5% 15.3% 18.1% 15.6% 11.5% Wealth Management Deposit Services Charge Ca
Slide 16: Operating Expenses Trend
Operating Expenses Trend Other Operating Expenses DetailOperating Expenses In Millions $52.4 $76.9 $63.7 $62.8 $65.4 $18.9 $20.6 $23.4 $22.4 $25.1 $3.5 $4.5 $4.5 $4.6 $4.3 $28.1 $33.7 $33.5 $35.8 $36.0 $1.9 $14.7 $2.3 $3.4 51.9% 51.3% 49.2% 52.4% 52.8% Other Occupancy Employee compensation and benef
Slide 17: Capital
Capital Tangible Common Equity/Tangible Assets* 8.32% 8.40% 8.13% 7.62% 7.80% 8.66% 8.71% 8.31% 7.70% 7.83% Tangible Common Equity/Tangible Assets Tangible Common Equity/Tangible Assets (excludes PPP loans) 2Q21 3Q21 4Q21 1Q22 2Q22 *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Regulator
Slide 18: Appendix
Appendix Second Quarter 2022 Earnings Webcast
Slide 19: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common e
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,447,412 $ 1,473,177 $ 1,529,116 $ 1,439,635 $ 1,11
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 109,613 $ 101,165 $ 102,060 $ 97,273 $ 81,738 Noninterest income 14,194 18,641 22,630 17,619 16
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 CORE PERFORMANCE MEASURES Net interest income $ 109,613 101,165 102,060 97,273 81,738 Noninterest income 14,194 18,641 22,630 17,619 16,204 Less gain (loss) o
Slide 23: Q & A
Q & A Second Quarter 2022 Earnings Webcast
Enterprise Financial Services — Q2 2022 Earnings Presentation on 6ix