Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q4 2024 Earnings Presentation
30 slides from Enterprise Financial Services's earnings presentation, Jan 28, 2025
Slide 1: 2024 Fourth Quarter Earnings Webcast
Exhibit 99.2 Enterprise Financial Services Corp 2024 Fourth 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: Financial Highlights - 4Q24
Financial Highlights - 4Q24* • Net Income $48.8 million, down $1.8 million; EPS $1.28 • Net Interest Income $146.4 million, up $2.9 million; NIM 4.13% Earnings • PPNR** $69.4 million, up $4.3 million • Adjusted ROAA** 1.31%, compared to 1.32%; PPNR ROAA** 1.80%, compared to 1.74% • Adjusted ROATCE**
Slide 4: Financial Highlights, continued - 4Q24
Financial Highlights, continued - 4Q24* • Loans $11.2 billion, up $140.5 million • Loan/Deposit Ratio 85.3% Loans & • Deposits $13.1 billion, up $681.2 million or $677.5 million Deposits excluding brokered CDs • Noninterest-bearing Deposits/Total Deposits 34% • Nonperforming Loans/Loans 0.38% • Nonp
Slide 5: Financial Highlights, continued - 2024
Financial Highlights, continued - 2024* • Net Income $185.3 million, down $8.8 million; EPS $4.83 • Net Interest Income $568.1 million, up $5.5 million; NIM 4.16% Earnings • PPNR** $255.2 million, down $29.6 million • Adjusted ROAA** 1.26%, compared to 1.41%; PPNR ROAA**1.72%, compared to 2.06% • Ad
Slide 6: Areas of Focus
Areas of Focus Organic Loan and Deposit Growth • Continue Funding Loan Growth with Customer Deposits • Build Franchise Value by Expanding Existing and Acquiring New Relationships Disciplined Loan and Deposit Pricing Focused Credit Underwriting and Monitoring Focus on Long-term Earnings Trajectory Co
Slide 7: Loan Trends
Loan Trends 3% Total Loan Growth $ In Millions $11,080 $11,220 $10,884 $11,028 $11,000 4Q23 1Q24 2Q24 3Q24 4Q24 7
Slide 8: Loan Details
Loan Details $ In Millions Qtr LTM 4Q24 3Q24 4Q23 Change Change C&I $ 2,139 $ 2,145 $ 2,186 $ (6) $ (47) CRE Investor Owned 2,405 2,347 2,292 58 113 CRE Owner Occupied 1,305 1,323 1,262 (18) 43 SBA loans* 1,298 1,273 1,282 25 16 Sponsor Finance* 783 819 872 (36) (89) Life Insurance Premium Financing
Slide 9: Loan By Region
Loan By Region $ In Millions Specialty Lending Midwest $3,990 $4,109 $3,898 $3,338 $3,194 $3,201 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 Southwest West $1,940 $1,855 $1,680 $1,784 $1,813 $1,566 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 Note: Excludes “Other” loans; Region Components: Midwest (St. Louis & Kansas City), So
Slide 10: Deposit Details
Deposit Details $ In Millions Qtr LTM 4Q24 3Q24 4Q23 Change Change Noninterest-bearing demand accounts $ 4,484 $ 3,934 $ 3,959 $ 550 $ 525 Interest-bearing demand accounts 3,175 3,049 2,950 126 225 Money market accounts 3,564 3,568 3,399 (4) 165 Savings accounts 553 553 595 — (42) Certificates of de
Slide 11: Deposit By Region
Deposit By Region $ In Millions Deposit Verticals Midwest* $6,219 $6,205 $6,433 $3,388 $3,093 $2,778 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 Southwest West* $1,971 $2,057 $1,828 $1,351 $1,196 $1,268 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24 Note: Region Components: Midwest (St. Louis & Kansas City), Southwest (AZ, NM, La
Slide 12: Differentiated Deposit Verticals
Differentiated Deposit Verticals 27.2% • $3.39 billion - 26% of total deposits • $3.35 billion - Average deposits for 4Q24 • $22.9 million - Related deposit costs in noninterest expense, resulting in an average deposit vertical cost of 2.72% in 4Q24 • $144.3 million - Average Deposits per Branch for
Slide 13: Core Funding Mix
Core Funding Mix Commercial Business Banking Consumer Deposit Verticals $ In Millions $4,946 $1,492 $2,603 $3,388 7% 4% 19% 1% 32% 20% 29% 4Q24 28% 38% 31% 18% 64% 6% 34% 32% 24% Overview Total Portfolio Average Account Size & Cost of Funds BUSINESS DEPOSIT COMMERCIAL CONSUMER BANKING VERTICALS • ~8
Slide 14: Earnings Per Share Trend - 4Q24
Earnings Per Share Trend - 4Q24 Change in Diluted EPS $0.05 $(0.06) $(0.03) $1.32 $1.28 3Q24 Operating Provision for Credit Losses Noninterest 4Q24 Revenue Expense 14
Slide 15: Net Interest Income Trend
Net Interest Income Trend $ In Millions Stable Net Interest Income $143.5 $146.4 $140.7 $137.7 $140.5 5.33% 5.33% 5.33% 5.27% 4.66% 4.23% 4.13% 4.19% 4.17% 4.13% 4Q23 1Q24 2Q24 3Q24 4Q24 Net Interest Income Net Interest Margin Avg Fed Funds Rate 4Q23 1Q24 2Q24 3Q24 4Q24 Net Interest Income - FTE $ 1
Slide 16: Net Interest Margin
Net Interest Margin Margin Bridge 0.02% 0.16% (0.17)% (0.05)% 4.17% 4.13% 3Q24 Loans Other Earning Asset Mix Funding Mix Cost of Funds 4Q24 Components of Interest-earning Assets Components of Interest-bearing Liabilities 6.87% 6.87% 6.95% 6.95% 6.73% 3.22% 3.26% 3.28% 3.09% 3.02% 3.14% 3.19% 3.22% 6
Slide 17: Credit Trends
Credit Trends Annualized Net Charge-offs to Average Loans Loan Growth and Average Line of Credit Utilization 42.0% 44.4% 45.8% 44.1% 41.5% 106 bps $ In Millions $267 $144 $140 26 bps $80 22 bps 14 bps 2 bps $(29) 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Organic Loans Avg Line Draw % Provisi
Slide 18: Allowance for Credit Losses for Loans
Allowance for Credit Losses for Loans Key Assumptions: 4Q24 ACL as a % of • Reasonable and supportable forecast Loans ACL $ In Millions Loans period is one year with a one year reversion period. Commercial and industrial $ 4,717 $ 63 1.34 % • Forecast considers a weighted average Commercial real est
Slide 19: Noninterest Income Trend
Noninterest Income Trend $ In Millions Noninterest Income Other Noninterest Income Detail $8.3 15.3% 13.0% 12.4% 8.1% 9.9% $25.5 $6.3 $3.2 $2.5 $21.4 $0.7 $2.7 $20.6 $2.6 $5.0 $2.7 $1.0 $4.3 $4.7 $15.5 $2.6 $0.6 $2.5 $0.3 $12.2 $0.2 $1.4 $4.0 $0.3 $2.6 $4.6 $2.6 $4.7 $0.4 $1.2 $1.3 $1.0 $9.7 $2.5 $0
Slide 20: Noninterest Expense Trend
Noninterest Expense Trend $ In Millions Noninterest Expense Other Noninterest Expense Detail 60.2% 58.1% 58.4% 57.1% 53.1% $98.0 $99.5 $93.5 $94.0 $24.6 $24.2 $92.6 $1.1 $22.6 $23.0 $0.9 $22.3 $2.7 $0.9 $2.1 $1.0 $0.9 $2.1 $2.2 $46.2 $2.3 $45.4 $2.7 $3.1 $39.7 $45.3 $44.5 $3.0 $3.3 $1.1 $3.1 $1.6 $1
Slide 21: Capital
Capital Tangible Common Equity/Tangible Assets TBV and Dividends per Share $0.25 $0.25 $0.26 $0.27 $0.28 9.50% 9.18% $33.85 $34.21 $35.02 $37.26 $37.27 9.01% 9.05% 8.96% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Tangible Common Equity/Tangible Assets* TBV/Share* Dividends per Share EFSC Capi
Slide 22: Appendix
Appendix
Slide 23: Investment Portfolio
Investment Portfolio Investment Portfolio Breakout AFS & HTM Securities $ In Millions Obligations of U.S. $2,400 $100 Government- Obligations of sponsored states and political enterprises subdivisions $1,600 $— 10% 42% TOTAL U.S. Treasury $2.9 billion $800 $(100) bills 5% Corporate debt $— $(200) se
Slide 24: Liquidity
Liquidity Strong Liquidity Profile $ In Billions EFSC Borrowing Capacity 42% 43% 42% • $1.3 billion available FHLB capacity • $2.8 billion available FRB capacity $5.3 $5.5 $5.1 • $140.0 million in seven federal funds lines $1.3 $1.2 $1.4 • $1.3 billion in unpledged investment securities $0.1 $0.1 $0
Slide 25: Office CRE (Non-owner Occupied)
Office CRE (Non-owner Occupied) Total $513.7 million Office CRE Loans by Location Office CRE Loans by Industry Type Southwest 26.8% Real Estate/ Rental/Leasing 88.1% Midwest West 47.4% 20.9% Specialty 4.9% Health Care Other and Social 8.7% Assistance 3.2% • Average loan-to-origination value 52% Offi
Slide 26: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common e
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended December 31, September 30, June 30, March 31, December 31, ($ in thousands) 2024 2024 2024 2024 2023 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,824,002 $ 1,832,011 $ 1,755,273
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended Year ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, ($ in thousands) 2024 2024 2024 2024 2023 2024 2023 RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE) AND RETURN ON AVERAGE ASSETS (ROAA) Averag
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended December 31, September 30, June 30, March 31, December 31, ($ in thousands) 2024 2024 2024 2024 2023 ALLOWANCE COVERAGE RATIO ADJUSTED FOR GUARANTEED LOANS Loans (GAAP) $ 11,220,355 $ 11,079,892 $11,000,007 $11,028,492 $ 10,884,118 Less gua
Slide 30: Enterprise Financial Services Corp
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Enterprise Financial Services — Q4 2024 Earnings Presentation on 6ix