Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q1 2022 Earnings Presentation
23 slides from Enterprise Financial Services's earnings presentation, Apr 25, 2022
Slide 1: Enterprise Financial Services Corp 2022 First Quarter Earnings Webcast
Enterprise Financial Services Corp 2022 First Quarter Earnings Webcast Exhibit 99.2
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 - 1Q22
Financial Highlights - 1Q22 Capital • Tangible Common Equity/Tangible Assets* 7.62%; Adjusted for PPP* 7.70% • Accumulated other comprehensive income declined $78.0 million primarily from a decrease in the fair value of the available-for-sale investment portfolio • Quarterly dividend of $0.21 per co
Slide 4: Areas of Focus
Areas of Focus Organic Loan Growth and Pipeline Expand Tax Credit Business, Geographically • Strategically Deploy $60 Million New Markets Tax Credit Allocation Talent Acquisitions to Accelerate Higher Growth • Complementary California Associates • Practice Finance • Phoenix • Texas Continued Integra
Slide 5: Total Loan Trends
In Millions 24% Total Loan Growth *Excludes First Choice PPP loans of $206 million included in acquisition total. First Choice $1,944 Total Loan Trends PPP* $233 PPP $134 PPP $738 PPP $397 PPP $272 5
Slide 6: Loan Details - LTM
Loan Details - LTM 1Q22 1Q21 LTM Change First Choice Net Organic Change C&I $ 1,498 $ 1,049 $ 449 $ 269 $ 180 CRE, Investor Owned 1,983 1,491 492 568 (76) CRE, Owner Occupied 1,138 806 332 278 54 SBA loans*1 1,250 941 309 158 151 Sponsor Finance* 641 394 247 — 247 Life Insurance Premium Financing* 6
Slide 7: Loan Details - QTR
Loan Details - QTR 1Q22 4Q21 QTR Change C&I $ 1,498 $ 1,538 $ (40) CRE, Investor Owned 1,983 1,955 28 CRE, Owner Occupied 1,138 1,113 25 SBA loans*1 1,250 1,241 9 Sponsor Finance* 641 508 133 Life Insurance Premium Financing* 636 594 42 Tax Credits* 518 487 31 Residential Real Estate 410 431 (21) Co
Slide 8: Total Loans By Business Unit
Total Loans By Business Unit In Millions Note: Excludes PPP and Other loans **4Q21 and 1Q22 include First Choice acquisition *4Q21 and 1Q22 include acquired First Choice SBA loans 8
Slide 9: Specialty Deposits
Specialty Deposits Community Associations $767 million in deposit accounts specifically designed to serve the needs of community associations. Property Management $480 million in deposits. Specializing in the compliance of Property Management Trust Accounts. Third-Party Escrow $587 million in deposi
Slide 10: Earnings Per Share Trend - 1Q22 Change in EPS
Earnings Per Share Trend - 1Q22 Change in EPS 10
Slide 11: Net Interest Income Trend
Net Interest Income Trend In Millions 28% NII Growth PPP Income $2.9 PPP Income $8.5 PPP Income $7.9 PPP Income $6.0 * First Choice acquisition completed 7/21/21. PPP Income $4.9 11
Slide 12: Net Interest Margin
Net Interest Margin Components of Interest-bearing LiabilitiesComponents of Interest-earning Assets 4Q21 3.32 % Cash/Liquidity (0.04) % Loans 0.01 % Investments (0.01) % 1Q22 3.28 % Net Interest Margin Trend Net Interest Margin Bridge 12
Slide 13: Credit Trends for Loans
Credit Trends for Loans 1Q22 4Q21 1Q21 NPAs/Assets 0.17% 0.23% 0.42% NPLs/Loans 0.23% 0.31% 0.50% ACL/NPLs 657.9% 517.6% 358.8% ACL/Loans** 1.73% 1.84% 2.22% Annualized Net Charge-offs (Recoveries) to Average Loans In Millions bps bps bps bps bps In Millions Loan Growth and Average Line of Credit Ut
Slide 14: Allowance for Credit Losses for Loans
Allowance for Credit Losses for Loans In Thousands • New loans and changes in composition of existing loans • Changes in risk ratings, past due status and reserves on individually evaluated loans • Changes in macroeconomic and qualitative factors 1Q22 In Thousands Loans ACL ACL as a % of Loans Comme
Slide 15: Noninterest Income Trend
Noninterest Income Trend Other Fee Income DetailFee Income In Millions 12.5% 16.5% 15.3% 18.1% 15.6% 15
Slide 16: Operating Expenses Trend
Operating Expenses Trend Other Operating Expenses DetailOperating Expenses In Millions 55.2% 51.9% 51.3% 49.2% 52.4% 16
Slide 17: Capital
Capital *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Excludes PPP loans. 8.0% 12.3% 12.3% 12.2% 13.0% EFSC Capital Strategy: Low Cost - Highly Flexible High Capital Retention Rate – Strong earnings profile – Sustainable dividend profile Supporting Robust Asset Growth – Organic loan and
Slide 18: Appendix
Appendix First Quarter 2022 Earnings Webcast
Slide 19: 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 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,473,177 $ 1,529,116 $ 1,439,635 $ 1,118,301 $ 1,09
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 101,165 $ 102,060 $ 97,273 $ 81,738 $ 79,123 Noninterest income 18,641 22,630 17,619 16,204 11,
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 CORE PERFORMANCE MEASURES Net interest income 101,165 102,060 97,273 81,738 79,123 Noninterest income 18,641 22,630 17,619 16,204 11,290 Less gain on sale of
Slide 23: Q & A
Q & A First Quarter 2022 Earnings Webcast
Enterprise Financial Services — Q1 2022 Earnings Presentation on 6ix