Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q1 2019 Earnings Presentation
20 slides from Enterprise Financial Services's earnings presentation, Apr 23, 2019
Slide 1: Enterprise Financial Services Corp 2019 First Quarter Earnings Webcast
Enterprise Financial Services Corp 2019 First Quarter Earnings Webcast
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information in this report contains “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. Forward-looking statements typically are identified with use
Slide 3: Financial Scorecard Q1 2019 Compared to Q1 2018
Financial Scorecard Q1 2019 Compared to Q1 2018 Continued Growth in EPS 26% • Drive Net Interest Income Growth in 13% Dollars with Favorable Loan Growth Trends • Defend Core Net Interest Margin1 5 bps • Maintain High Quality Credit Profile 18 bps NPLs/Loans • Achieve Further Improvement in Core Cons
Slide 4: 2019 Focus
2019 Focus • Closing and Integration of the TCC Acquisition • Achieve Organic Loan and Deposit Goals • Continued Incremental Improvement of Our Sales and Operational Processes 4
Slide 5: Total Loan Trends
Total Loan Trends 20% Total Loan Growth* $5,017 In Millions Trinity $682 $4,350 $4,276 $4,267 $4,191 Q1' 18 Q2' 18 Q3' 18 Q4' 18 Q1' 19 *Note: 3% Excluding Acquisition of Trinity 5
Slide 6: Commercial & Industrial Loan Trends
Commercial & Industrial Loan Trends 12% C&I Growth* In Millions $2,227 Trinity $2,121 $65 $2,038 $2,033 $1,982 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 *Note: 9% Excluding Acquisition of Trinity 6
Slide 7: Loan Details
Loan Details Q1 ’19 Q4 ’18 QTR Trinity Q1 ’18 LTM In Millions Change Change C&I - General $ 1,129 $ 995 $ 134 $ 65 $ 948 $ 181 CRE, Investor Owned - General 1,183 862 321 305 842 341 CRE, Owner Occupied - General 576 497 79 92 480 96 Enterprise Value Lending1 440 466 (26) — 439 1 Life Insurance Prem
Slide 8: Total Loans By Business Unit
Total Loans By Business Unit In Millions Specialized Lending St. Louis Kansas City $2,298 $2,312 $2,273 $719 $730 $877 $965 $979 $685 Q1 '18 Q4 '18 Q1 '19 Q1 '18 Q4 '18 Q1 '19 Q1 '18 Q4 '18 Q1 '19 Arizona New Mexico* $331 $354 $353 $682 Q1 '18 Q4 '18 Q1 '19 Q1 '18 Q4 '18 Q1 '19 * Acquisition of Trin
Slide 9: Deposit Trend
Deposit Trend 25.7% 24.7% 25.2% 24.0% 21.4% In Millions $5,537 Trinity $1,094 $4,588 $4,281 $4,248 $4,210 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Deposits Trinity DDA % u Last Twelve Months Growth Rate = 29%, 4% Excluding Acquisition of Trinity 9
Slide 10: Earnings Per Share Trend - Q1 2019
Earnings Per Share Trend - Q1 2019 Changes in EPS $(0.20) $(0.08) $(0.07) $1.02 $0.67 Q4 '18 Merger-Related Change in Other Operating Q1 '19 Expenses Shares/ ETR Results 10
Slide 11: Net Interest Income Trend
Net Interest Income Trend 3.74% 3.75% 3.74% 3.77% 3.79% In Millions $52.3 $50.6 $48.1 $46.2 $47.0 $51.2 $48.5 $46.8 $47.6 $45.4 13% Core NII Growth Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Core Net Interest Income* Incremental Accretion On Non-core Acquired Assets FTE Core Net Interest Margin* Note: * A N
Slide 12: Credit Trends for Loans
Credit Trends for Loans Net Charge-offs Total Loan Growth (2) In Millions 26 bps 23 bps $94 $85 $83 16bps 6 bps (2) bps $(9) $(15) Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Net Provision for Loans Q1 2019 EFSC Peer(1) In Millions $2.3 NPA’s/Assets = 0.24% 0.57% $2.1 $1.9
Slide 13: Noninterest Income
Noninterest Income In Millions Fee Income Other Fee Income Detail $10.7 $2.8 $2.8 $0.1 $9.7 $1.0 $0.1 $9.5 $9.2 $0.2 $0.3 $0.1 $2.3 $2.3 $8.4 $0.2 $0.3 $0.3 $2.8 $0.2 $2.8 $2.3 $0.1 $1.4 $1.7 $1.7 $0.1 $0.3 $1.7 $1.8 $1.8 $1.8 $0.2 $1.4 $0.3 $1.5 $0.1 $0.2 $0.2 $0.4 $2.1 $0.2 $2.8 $3.0 $3.0 $2.9 $2.
Slide 14: Operating Expenses Trend
Operating Expenses Trend 54.0% 54.1% 52.4% 52.2% 49.8% In Millions $39.8 $7.3 $30.7 $29.1 $29.2 $29.9 $0.7 $1.3 $19.4 $16.5 $16.6 $16.3 $16.6 $2.4 $2.3 $2.4 $2.4 $2.6 $10.2 $10.3 $10.5 $10.4 $10.5 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Other Occupancy Employee compensation and benefits Merger related ex
Slide 15: Effective Tax Rate Reconciliation
Effective Tax Rate Reconciliation Q1 2019 2018 Q1 2018 Federal Tax Rate 21.00% 21.00% 21.00% State Tax, Net of Federal Benefit 2.42% 2.32% 2.65% Excess Tax Benefits (2.07)% (1.56)% (4.06)% Tax Credit Investments (0.88)% (4.66)% (3.98)% Nondeductible-Merger Expenses 1.29% —% —% Other Tax Adjustments
Slide 16: Positive Momentum in Earnings Per Share
Positive Momentum in Earnings Per Share $1.02 $0.97 $0.95 $0.90 Five-Year CAGR 17% $0.69 $0.67 $0.67 $0.61 $0.59 $0.56 $0.54 $0.52 $0.50 $0.48 $0.46 $0.43 $0.41 $0.36 $0.32 $0.30 $0.30 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1
Slide 17: First Quarter 2019 Earnings Webcast Appendix
First Quarter 2019 Earnings Webcast Appendix
Slide 18: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as net interest marg
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the Quarter ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in thousands, except per share data) 2019 2018 2018 2018 2018 CORE PERFORMANCE MEASURES Net interest income $ 52,343 $ 50,593 $ 48,093 $ 47,048 $ 46,171 Less: Incremental accretion income 1
Slide 20: First Quarter 2019 Earnings Webcast Q & A
First Quarter 2019 Earnings Webcast Q & A
Enterprise Financial Services — Q1 2019 Earnings Presentation on 6ix