Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q1 2015 Earnings Presentation
18 slides from Enterprise Financial Services's earnings presentation, Apr 23, 2015
Slide 1: 2015 First Quarter Earnings Release
Enterprise Financial Services Corp 2015 First Quarter Earnings Release ACCEL ERAT ING QUAL IT Y GROWT H
Slide 2: Forward-Looking Statements
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 “may,
Slide 3: 2015 Objectives
Grow Core EPS Drive Quality Loan Growth Enhance Core Net Interest Income Defend Core Net Interest Margin Maintain High Credit Quality Metrics Improve Operating Leverage 2015 Objectives: – Building on 2014 2
Slide 4: Portfolio Loan Trends
Portfolio Loan Trends $2,174 $2,251 $2,294 $2,434 $2,436 3/31/2014 6/30/2014 9/30/2014 12/31/2014 3/31/2015 In Millions 3
Slide 5: Commercial & Industrial Loan Trends
$1,060 $1,135 $1,172 $1,270 $1,265 3/31/2014 6/30/2014 9/30/2014 12/31/2014 3/31/2015 Commercial & Industrial Loan Trends In Millions 4
Slide 6: Portfolio Loan Trends
Portfolio Loan Trends 5 3/31/15 12/31/14 Change Enterprise Value Lending $ 204 $ 202 $ 2 C&I General 710 717 (7) Life Insurance Premium Financing 230 221 9 Tax Credit 122 130 (8) Commercial/CRE 920 915 5 Residential 180 185 (5) Other 70 64 6 Portfolio Loans $ 2,436 $ 2,434 $ 2 In Millions
Slide 7: Portfolio Loans By Region
Portfolio Loans By Region $1,723 $574 $139 St. Louis Kansas City Arizona 03/31/2015 $1,712 $583 $139 St. Louis Kansas City Arizona 12/31/2014 In Millions In Millions 6
Slide 8: Deposit Trends
Deposit Trends 7 $2,452 $2,465 $2,510 $2,492 $2,675 25.0% 27.4% 27.7% 25.8% 25.5% Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Deposits DDA %
Slide 9: Reported vs. Core EPS Q1 2015
8 Earnings Per Share $22,387 $0.46 <$0.11> $0.35 EPS Non-Core Covered Assets Core EPS In Millions * A Non GAAP Measure, Refer to Appendix for Reconciliation (1) FDIC Loss Sharing Agreements Reported vs. Core EPS* Q1 2015 (1)
Slide 10: Earnings Per Share Trend
9 Earnings Per Share Trend $0.33 $0.01 < $0.02> $0.03 $0.35 Q4 '14 Portfolio Loan Loss Provision Non-Interest Income Operating Expenses Q1 '15 In Millions Changes in Core EPS* * A Non GAAP Measure, Refer to Appendix for Reconciliation
Slide 11: Net Interest Income Driving Core Revenue Growth
Net Interest Income Driving Core Revenue Growth* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $23.7 $24.2 $24.9 $25.7 $25.6 3.44% 3.41% 3.41% 3.45% 3.46% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 $11.0 $12.0
Slide 12: Credit Trends for Portfolio Loans
Credit Trends for Portfolio Loans 8 bps 15 bps -5 bps 10 bps 25 bps Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 0 Net Charge-offs (1) 2014 NCO = 7 bps (1) Portfolio loans only, excludes PCI loans $36.7 $77.1 $43.8 $139.1 $1.6 0 50 100 150 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Portfolio Loan Growth $1.0 $1.3 $0.
Slide 13: Managed Operating Expenses Improving Efficiency
Managed Operating Expenses* Improving Efficiency In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $20.4 $19.5 $19.3 $20.2 $19.1 68.2% 64.5% 62.8% 62.8% 60.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 0 6 12 18 24 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Operating Expenses*
Slide 14: Positive Momentum in Core Earnings Per Share
Positive Momentum in Core* Earnings Per Share $0.28 $0.31 $0.37 $0.33 $0.35 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 13 25% Core EPS Growth from Q1 2014 to Q1 2015
Slide 15: Financial Priorities
Continued Growth in Core EPS Drive Net Interest Income Growth in Dollars with Favorable Loan Growth Trends Defend Net Interest Margin Maintain High Quality Credit Profile Achieve Further Improvement in Operating Leverage Enhance Deposit Levels to Support Growth Financial Priorities 14 Trend Fr
Slide 16: Appendix
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Slide 17: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures 16 The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net incom
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 17 Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (in thousands) 2015 2014 2014 2014 2014 CORE PERFORMANCE MEASURES Net interest income 29,045$ 30,816$ 27,444$ 28,742$ 30,366$ Less: Incremental accretion income 3,458 5,149 2,579 4,538 6,664 Core net interest in
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