Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q2 2017 Earnings Presentation
20 slides from Enterprise Financial Services's earnings presentation, Jul 26, 2017
Slide 1: Enterprise Financial Services Corp 2017 Second Quarter Earnings Release
Enterprise Financial Services Corp 2017 SECOND QUARTER EARNINGS RELEASE
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: 2017 Focus
2017 Focus • Sustain Core Growth Trends • Successfully Convert and Integrate Jefferson County Bancshares (“JCB”) • Maintain Focus on Long-Term Strategic Development 3
Slide 4: Financial Scorecard
4 Financial Scorecard 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 Q2 2017
Slide 5: Portfolio Loan Trends
5 Portfolio Loan Trends $2,884 $3,038 $3,118 $3,853 $3,859 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 In Millions *Note: 10% excluding acquisition of JCB JCB $678
Slide 6: Commercial & Industrial Loan Trends
$1,541 $1,599 $1,633 $1,774 $1,796 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Commercial & Industrial Loan Trends In Millions JCB $79 6
Slide 7: Portfolio Loan Details
Portfolio Loan Details Q2 ’17 Q1 ’17 QTR CHANGE Q2 ‘16 LTM CHANGE ENTERPRISE VALUE LENDING $ 433 $ 430 $ 3 $ 354 $ 79 C&I GENERAL 895 890 5 738 157 LIFE INSURANCE PREMIUM FINANCING 318 312 6 296 22 TAX CREDIT 150 142 8 153 (3) COMMERCIAL REAL ESTATE 1,563 1,541 22 971 592 RESIDENTIAL REAL ESTATE 349
Slide 8: Portfolio Loans By Business Unit
Portfolio Loans By Business Unit $1,432 $2,198 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 $2,300 Q2 '16 Q1 '17 Q2 '17 St. Louis $2,210 $549 $614 $607 0 200 400 600 800 1000 1200 1400 Q2 '16 Q1 '17 Q2 '17 $190 $236 $251 0 500 1000 1500 Q2 '16 Q1 '17 Q2 '17 Arizona In Millions Kansas City $71
Slide 9: Deposit Trends
Deposit Trends $3,028 $3,125 $3,233 $4,032 $3,921 24.9% 24.4% 26.8% 25.7% 26.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 800 1,300 1,800 2,300 2,800 3,300 3,800 4,300 Deposits DDA % • Last Twelve Months Growth Rate = 29%, 4% Excluding Acquisition of JCB In Millions JC
Slide 10: Earnings Per Share
Earnings Per Share $0.50 < $0.07 > $0.01 $0.12 $0.56 EPS Non-Core Acquired Assets Other Merger Related Expenses Core EPS * A Non GAAP Measure, Refer to Appendix for Reconciliation Reported vs. Core EPS* Q2 2017 10
Slide 11: Earnings Per Share Trend
Earnings Per Share Trend $0.59 $0.08 < $0.05 > $0.01 < $0.03 > < $0.04 > $0.56 Q1 '17 Net Interest Income Portfolio Loan Loss Provision Non Interest Income Non Interest Expense Income Tax Item Q2 '17 Changes in Core EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation 11
Slide 12: Core Net Interest Income Trend
12 Core Net Interest Income Trend* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $30.2 $31.5 $32.2 $37.6 $43.0 3.52% 3.54% 3.44% 3.63% 3.76% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 $11.0 $12.0 $13.0 $14.0 $15.0 $16.0 $17.0 $1
Slide 13: Credit Trends for Portfolio Loans
13 Credit Trends for Portfolio Loans -6 bps 14 bps 12 bps -1 bps 64 bps Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q2 2017 EFSC PEER(3) NPA’S/ASSETS = 0.27% 0.64% NPL’S/LOANS = 0.34% 0.77% ALLL/NPL’S = 280% 119% ALLL/LOANS (4) = 0.96% 1.05% (1) Portfolio loans only, excludes non-core acquired loans; (2) Exc
Slide 14: Core Fee Income
Core Fee Income* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation Other Core Fee Income DetailCore Fee Income $1.6 $1.7 $1.7 $1.8 $2.0 $2.2 $2.2 $2.2 $2.5 $2.8 $2.1 $2.7 $2.2 $2.5 $3.1 $0.2 $0.2 $1.7 $0.2 $0.0 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Wealth Management Deposit Service Charg
Slide 15: Operating Expenses Trend
Operating Expenses Trend* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $6.5 $6.4 $7.0 $7.8 $9.7 $1.6 $1.7 $1.7 $1.9 $2.3 $12.3 $12.1 $12.4 $15.2 $15.8 56.3% 52.8% 52.7% 56.0% 54.5% -3 2 7 12 17 22 27 32 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Other Occupancy Employee compe
Slide 16: Positive Momentum in Core Earnings Per Share
16 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 $0.59 $0.56 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 100%
Slide 17: Appendix
Appendix SECOND QUARTER 2017 EARNINGS WEBCAST
Slide 18: Use of Non-GAAP Financial Measures
18 Use of Non-GAAP Financial Measures The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net inter
Slide 19: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, (in thousands, except per share data) 2017 2017 2016 2016 2016 CORE PERFORMANCE MEASURES Net interest income 45,633$ 38,642$ 35,454$ 33,830$ 33,783$ Less: Incremental accretion income 2,584 1,075 3,279 2,296 3,571
Slide 20: Q & A
Q & A SECOND QUARTER 2017 EARNINGS WEBCAST
Enterprise Financial Services — Q2 2017 Earnings Presentation on 6ix