Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q3 2020 Earnings Presentation
29 slides from Enterprise Financial Services's earnings presentation, Oct 20, 2020
Slide 1: Enterprise Financial Services Corp 2020 Third Quarter Earnings Webcast
Exhibit 99.2 Filed by Enterprise Financial Services Corp Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Seacoast Commerce Banc Holdings SEC Registration Statement No.: 333-248758 Enterprise Financial Services Corp 2020 Third Quarter Earnings Webcast
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: Notice to Seacoast Shareholders
Notice to Seacoast Shareholders This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the Company’s proposed acquisition of Seacoast, the Company filed a registration statement on For
Slide 4: Financial Highlights - Q3 '20
Financial Highlights - Q3 '20 • Net Income $18.0 million; Earnings per Share $0.68 • PPNR* $38.0 million Earnings • ROAA 0.86%; PPNR ROAA* 1.81% • ROATCE* 10.94% • Total Loans $6.1 billion Loans & • PPP Loans $819.1 million • Loan/Deposits 92% Deposits • Total Deposits $6.7 billion • Noninterest-bea
Slide 5: Areas of Focus
Areas of Focus Closing and Integration of Seacoast Commerce Banc Holdings and Seacoast Commerce Bank • Received FDIC approval and a waiver from the Federal Reserve • Missouri Division of Finance approval pending • Seacoast shareholder approval pending (special meeting scheduled for November 6, 2020)
Slide 6: Total Loan Trends
Total Loan Trends 17% Total Loan Growth In Millions PPP PPP $808 $819 6
Slide 7: Loan Details
Loan Details Q3 ’20 Q2 ’20 QTR Q3 ’19 LTM In Millions Change Change C&I $ 1,081 $ 1,058 $ 23 $ 1,175 $ (94) CRE, Investor Owned 1,284 1,301 (17) 1,281 3 CRE, Owner Occupied 583 600 (17) 566 17 SBA PPP loans 819 808 11 — 819 Enterprise Value Lending1 367 383 (16) 417 (50) Life Insurance Premium Finan
Slide 8: Commercial & Industrial Loan Trends
Commercial & Industrial Loan Trends In Millions 37% C&I Growth PPP PPP $808 $819 8
Slide 9: PPP Loans
PPP Loans Total $819 Million PPP Loans by Industry PPP Loans by Location Health Care Construction 10.1% 10.4% Manufacturing Southeast 9.7% 3.5% Accomodation, Midwest Food Service 68.6% 11.3% Retail West Trade 3.8% 8.4% Northeast 2.2% Professional Services Other 16.7% Southwest 33.4% 21.9% 1% coupo
Slide 10: Total Loans By Business Unit
Total Loans By Business Unit In Millions Note: Q2 '20 and Q3 '20 excludes PPP loans 10
Slide 11: Loan Portfolio
Loan Portfolio Loans by Product Type Loans by Industry Type Finance and Real Estate/ Insurance Construction 7.4% Rental/Leasing 11.4% Residential 5.2% 26.2% Other Services Other 2.3% 9.4% CRE 30.5% EVL 6.0% Manufacturing Other 8.3% LIPF 8.5% 32.1% Construction 7.0% Tax Credit 6.0% Professional Servi
Slide 12: Deposit Trend
Deposit Trend In Millions u Last Twelve Months Growth Rate = 19% 12
Slide 13: Loan Deferrals Summary
Loan Deferrals Summary Loan Deferrals by Industry In Millions Interest deferred at September 30, 2020 $4.5 Other Hospitality 29.9% Total Loans Receiving Deferrals $690.8 15.6% Less: Loans Moved Out of Deferral Status 551.5 Retail Trade Total Total Loans in Deferral Status at September 30, 2020 $139.
Slide 14: Loan Deferrals
Loan Deferrals Loan Deferrals by Loan Type Aging of Loan Deferrals In Thousands In Thousands Loans Loans in 2nd Round Total Moved out Deferral Deferrals Current 30-89 Days 90+ Days Total Deferrals of Deferral Status (Included Past Due Past Due Status Q3 ‘20 in Q3 ’20) Commercial Real Commercial Real
Slide 15: Allowance for Credit Losses for Loans
Allowance for Credit Losses for Loans Q3 '20 ACL as a % ACL Loans of Loans In Thousands Commercial and industrial $ 57,870 $ 3,152,394 1.84 % Commercial real estate 39,143 2,027,886 1.93 % Construction real estate 18,918 474,727 3.99 % $123,270 $110,270 Residential real estate 5,331 321,792 1.66 % O
Slide 16: Earnings Per Share Trend - Q3 2020
Earnings Per Share Trend - Q3 2020 Change in EPS $0.64 $0.56 Q2 '20 Net Interest Incremental Provision for Noninterest Merger-Related Q3 '20 Income Accretion Credit Losses Income Expense 16
Slide 17: Net Interest Income Trend
Net Interest Income Trend In Millions 2% NII Growth 17
Slide 18: Credit Trends for Loans
Credit Trends for Loans Net Charge-offs (annualized) Total Loan Growth In Millions bps bps bps bps bps In Millions EFSC Q3 '20 Q2 '20 NPAs/Assets* = 0.59% 0.61% NPLs/Loans* = 0.75% 0.78% ALLL/NPLs = 311.1% 265.9% ALLL/Loans* = 2.32% 2.07% *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Ex
Slide 19: Change in Allowance for Credit Losses for Loans
Change in Allowance for Credit Losses for Loans In Thousands • New loans • Changes in • Qualitative • Change in • Changes in macro- reserves for reserves for composition of economic certain loan individually existing loans factors segments, evaluated loans including: • Changes in • Changes in Hospit
Slide 20: Noninterest Income Trend
Noninterest Income Trend In Millions Fee Income Other Fee Income Detail 20
Slide 21: Operating Expenses Trend
Operating Expenses Trend In Millions $0.4 * A Non-GAAP Measure, Refer to Appendix for Reconciliation 21
Slide 22: Capital
Capital In Thousands 11.6% 11.2% 11.4% 11.0% 11.4% Holding Company liquidity position 8.0% continues to support strategic capital planning initiatives, including debt service and dividends. *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Excludes PPP loans for Q2 and Q3 2020 22
Slide 23: Third Quarter 2020 Earnings Webcast Appendix
Third Quarter 2020 Earnings Webcast Appendix
Slide 24: Earnings Per Share Trend - 2020
Earnings Per Share Trend - 2020 Change in EPS $2.45 $1.73 Q3 '19 YTD Net Interest Incremental Provision for Noninterest Noninterest Merger-Related Change in/ Q3 '20 YTD Income Accretion Credit Losses Income Expense Expense Shares ETR
Slide 25: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as adjusted EPS, cor
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended Nine months ended Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, ($ in thousands) 2020 2020 2020 2019 2019 2020 2019 CORE PERFORMANCE MEASURES Net interest income $ 63,354 $ 65,833 $ 63,368 $ 61,613 $ 63,046 $ 192,555 $ 177,104 Les
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, ($ in thousands) 2020 2020 2020 2019 2019 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 882,267 $ 867,963 $ 846,436 $ 867,185 $ 846,095 Less
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, ($ in thousands) 2020 2020 2020 2019 2019 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 63,354 $ 65,833 $ 63,368 $ 61,613 $ 63,046 Noninterest income 12,629 9,960 13,408 14,418 13,564
Slide 29: Third Quarter 2020 Earnings Webcast Q & A
Third Quarter 2020 Earnings Webcast Q & A
Enterprise Financial Services — Q3 2020 Earnings Presentation on 6ix