Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q4 2016 Earnings Presentation
23 slides from Enterprise Financial Services's earnings presentation, Jan 24, 2017
Slide 1: 2016 Fourth Quarter Earnings Release
Enterprise Financial Services Corp 2016 FOURTH QUARTER EARNINGS RELEASE Filed by Enterprise Financial Services Corp Pursuant to Rule 425 of the Securities Act of 1933 and deemed filed pursuant to Rule 14a-6(b) of the Securities Exchange Act of 1934 Subject Company: Jefferson County Bancshares, Inc.
Slide 2: Forward-looking statements
2 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 of terms such as “may,”
Slide 3: 2017 Focus
3 SUSTAIN CORE GROWTH TRENDS SUCCESSFULLY CLOSE, CONVERT AND INTEGRATE JEFFERSON COUNTY BANCSHARES MAINTAIN FOCUS ON LONG-TERM STRATEGIC DEVELOPMENT 2017 FOCUS
Slide 4: Financial Scorecard
4 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 20% 12%
Slide 5: Portfolio Loan Trends
5 PORTFOLIO LOAN TRENDS $2,751 $2,833 $2,884 $3,038 $3,118 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 In Millions
Slide 6: Commercial & Industrial Loan Trends
6 $1,484 $1,545 $1,541 $1,599 $1,633 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 COMMERCIAL & INDUSTRIAL LOAN TRENDS In Millions
Slide 7: Portfolio Loan Details
7 PORTFOLIO LOAN DETAILS Q4 ’16 Q3 ‘16 QTR CHANGE Q4 ‘15 LTM CHANGE ENTERPRISE VALUE LENDING $ 389 $ 395 $ (6) $ 350 $ 39 C&I GENERAL 794 756 38 732 62 LIFE INSURANCE PREMIUM FINANCING 306 299 7 265 41 TAX CREDIT 144 149 (5) 137 7 COMMERCIAL REAL ESTATE 1,089 1,045 44 932 157 RESIDENTIAL REAL ESTATE
Slide 8: Portfolio Loans by Business Unit
8 PORTFOLIO LOANS BY BUSINESS UNIT $1,387 $1,484 $1,556 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 Q4 '15 Q3 '16 Q4 '16 St. Louis $535 $586 $591 0 200 400 600 800 1000 1200 1400 Q4 '15 Q3 '16 Q4 '16 $190 $218 $226 0 500 1000 1500 Q4 '15 Q3 '16 Q4 '16 Arizona In Millions Kansas City $639 $750 $745 $-
Slide 9: Deposit Trends
9 DEPOSIT TRENDS $2,785 $2,932 $3,028 $3,125 $3,233 25.8% 24.5% 24.9% 24.4% 26.8% -30.0% -5.0% 20.0% Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Deposits DDA % Last Twelve Months Growth Rate = 16% In Millions
Slide 10: Core Fee Income
10 CORE FEE INCOME* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation Other Core Fee Income Detail Core Fee Income $1.7 $1.7 $1.6 $1.7 $1.7 $2.0 $2.0 $2.2 $2.2 $2.2 $1.7 $1.8 $2.1 $2.7 $2.2 $1.7 $0.5 $0.2 $0.2 $1.7 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Wealth Management Deposit Service C
Slide 11: Full Year Earnings Per Share Trend
11 FULL YEAR EARNINGS PER SHARE TREND $1.66 $0.51 < $0.02> $0.04 <$0.16> $2.03 2015 YTD Net Interest Income Portfolio Loan Loss Provision Non Interest Income Non Interest Expense 2016 YTD CHANGES IN CORE EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
Slide 12: 2016 Performance Highlights
12 2016 PERFORMANCE HIGHLIGHTS EFSC Peer* RETURN ON AVERAGE ASSETS 1.29% 0.98% CORE RETURN ON AVERAGE ASSETS 1.09% 0.98% RETURN ON AVERAGE COMMON EQUITY 13.1% 9.61% CORE EFFICIENCY RATIO 54.7% 60.5% CORE EPS GROWTH 22% 10% TANGIBLE COMMON EQUITY GROWTH $37 million or 12% DIVIDEND GROWTH 56% PCI LOAN
Slide 13: Earnings Per Share Trend
13 EARNINGS PER SHARE TREND $0.49 $0.02 $0.07 $0.04 < $0.03> $0.59 Q3 '16 Net Interest Income Portfolio Loan Loss Provision Non Interest Income Non Interest Expense Q4 '16 CHANGES IN CORE EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
Slide 14: Core Net Interest Income Trend
14 CORE NET INTEREST INCOME TREND* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $28.7 $29.6 $30.2 $31.5 $32.2 3.50% 3.54% 3.52% 3.54% 3.44% 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 15: Credit Trends for Portfolio Loans
15 CREDIT TRENDS FOR PORTFOLIO LOANS -10 bps -1 bps -6 bps 14 bps 12 bps Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Net Charge-offs (1) (1) Portfolio loans only, excludes PCI (Purchased Credit Impaired) loans Q4 2016 EFSC PEER(2) NPA’S/ASSETS = 0.39% 0.51% NPL’S/LOANS = 0.48% 0.64% ALLL/NPL’S = 252% 138% AL
Slide 16: Operating Expenses Trend
16 OPERATING EXPENSES TREND* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $6.5 $6.1 $6.5 $6.4 $7.0 $1.7 $1.7 $1.6 $1.7 $1.7 $11.8 $12.6 $12.3 $12.1 $12.4 56.1% 57.4% 56.3% 52.8% 52.7% -1 4 9 14 19 24 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Other Occupancy Employee compensa
Slide 17: Positive Momentum in Core Earnings Per Share
17 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 $0.49 $0.59 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 111% Core EPS Growth from Q1 2
Slide 18: Appendix
Appendix
Slide 19: Use of Non-GAAP Financial Measures
19 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 20: Reported vs. Core EPS Q4 2016
20 EARNINGS PER SHARE $0.67 <$0.14> $0.06 $0.59 EPS Non-Core Acquired Assets Other Non-Core Expenses Core EPS * A Non GAAP Measure, Refer to Appendix for Reconciliation REPORTED VS. CORE EPS* Q4 2016
Slide 21: Reported vs. Core EPS Full Year
21 FULL YEAR EARNINGS PER SHARE $2.41 <$0.46> $0.08 $2.03 EPS Non-Core Acquired Assets Other Non-Core Expenses Core EPS * A Non GAAP Measure, Refer to Appendix for Reconciliation REPORTED VS. CORE EPS* Q4 2016
Slide 22: Reconciliation of Non-GAAP Financial Measures
22 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31, (in thousands, except per share data) 2016 2016 2016 2016 2015 2016 2015 CORE PERFORMANCE MEASURES Net interest income 35,454$ 33,830$ 33,783$ 32,428$ 32,079$ 135,495$ 120,410$ Less: Incremental
Slide 23: Q & A Fourth Quarter 2016 Earnings Webcast
23 Q & A FOURTH QUARTER 2016 EARNINGS WEBCAST
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