Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q3 2015 Earnings Presentation
19 slides from Enterprise Financial Services's earnings presentation, Oct 22, 2015
Slide 1: Enterprise Financial Services Corp 2015 Third Quarter Earnings Release
Enterprise Financial Services Corp 2015 THIRD QUARTER EARNINGS RELEASE
Slide 2: Forward-Looking Statements
1 Some of the information in this report contains “forward-looking statements” within the meaning of and are 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 “ma
Slide 3: 2015 Objectives
2 GROW CORE EPS DRIVE QUALITY LOAN GROWTH ENHANCE CORE NET INTEREST INCOME DEFEND PORTFOLIO LOAN YIELDS MAINTAIN HIGH CREDIT QUALITY METRICS IMPROVE OPERATING LEVERAGE 2015 OBJECTIVES
Slide 4: Portfolio Loan Trends
3 PORTFOLIO LOAN TRENDS $2,295 $2,434 $2,436 $2,543 $2,602 2,000 2,200 2,400 2,600 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 In Millions
Slide 5: Commercial & Industrial Loan Trends
4 $1,172 $1,270 $1,265 $1,335 $1,371 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 COMMERCIAL & INDUSTRIAL LOAN TRENDS In Millions
Slide 6: Portfolio Loan Trends
5 PORTFOLIO LOAN TRENDS 9/30/15 6/30/15 CHANGE 12/31/14 CHANGE ENTERPRISE VALUE LENDING $ 246 $ 251 $ (5) $ 202 $ 44 C&I GENERAL 732 712 20 705 27 LIFE INSURANCE PREMIUM FINANCING 248 239 9 221 27 TAX CREDIT 145 133 12 142 3 COMMERCIAL REAL ESTATE 931 940 (9) 916 15 RESIDENTIAL 189 186 3 185 4 OTHER
Slide 7: Portfolio Loans by Region
6 PORTFOLIO LOANS BY REGION $1,809 $1,760 $1,712 $1,660 $1,680 $1,700 $1,720 $1,740 $1,760 $1,780 $1,800 $1,820 9/30/2015 6/30/2015 12/31/2014 St. Louis $629 $633 $583 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 9/30/2015 6/30/2015 12/31/2014 $164 $150 $139 - 500 1,000 1,500 9/30/2015 6/30/2015
Slide 8: Deposit Trends
7 DEPOSIT TRENDS $2,510 $2,492 $2,675 $2,692 $2,814 27.7% 25.8% 25.5% 24.5% 24.6% -30.0% -5.0% 20.0% Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Deposits DDA % LTM Growth Rate = 12%
Slide 9: Earnings Per Share
8 EARNINGS PER SHARE $22,387 $0.48 < $0.04> $0.44 EPS Non-Core Covered Assets Core EPS In Millions * A Non GAAP Measure, Refer to Appendix for Reconciliation (1) FDIC Loss Sharing Agreements REPORTED VS. CORE EPS* Q3 2015 (1)
Slide 10: Earnings Per Share Trend
9 EARNINGS PER SHARE TREND $0.38 $0.03 $0.05 < $0.03> <$0.01> $0.02 $0.44 Q2 '15 Net Interest Income Portfolio Loan Loss Provision Non Interest Income Non Interest Expense Income Tax Rate Q3 '15 In Millions CHANGES IN CORE EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
Slide 11: Net Interest Income Driving Core Revenue Growth
10 NET INTEREST INCOME DRIVING CORE REVENUE GROWTH* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $24.9 $25.7 $25.6 $26.3 $27.1 3.41% 3.45% 3.46% 3.46% 3.41% 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
Slide 12: Credit Trends for Portfolio Loans
11 CREDIT TRENDS FOR PORTFOLIO LOANS -5 bps 10 bps 25 bps 11 bps 2 bps Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Net Charge-offs (1) 2014 NCO = 7 bps (1) Portfolio loans only, excludes PCI loans $0.1 $2.0 $1.6 $2.2 $0.6 $- $0.6 $1.2 $1.8 $2.4 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Provision for Portfolio Loans
Slide 13: Managed Operating Expenses Improving Efficiency
12 MANAGED OPERATING EXPENSES* IMPROVING EFFICIENCY In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $19.3 $20.2 $19.1 $19.0 $19.3 62.8% 62.8% 60.7% 57.6% 58.6% -200.0% -180.0% -160.0% -140.0% -120.0% -100.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% -20 -5
Slide 14: Positive Momentum in Core Earnings Per Share
13 POSITIVE MOMENTUM IN CORE* EARNINGS PER SHARE $0.37 $0.33 $0.35 $0.38 $0.44 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 19% Core EPS Growth from Q3 2014 to Q3 2015
Slide 15: Financial Priorities
14 CONTINUED GROWTH IN CORE EPS DRIVE NET INTEREST INCOME GROWTH IN DOLLARS WITH FAVORABLE LOAN GROWTH TRENDS DEFEND NET INTEREST MARGIN MAINTAIN HIGH QUALITY CREDIT PROFILE ACHIEVE FURTHER IMPROVEMENT IN OPERATING LEVERAGE ENHANCE DEPOSIT LEVELS TO SUPPORT GROWTH FINANCIAL PRIORITIES 19% 9% 0
Slide 16: Appendix
Appendix
Slide 17: Use of Non-GAAP Financial Measures
16 USE OF NON-GAAP FINANCIAL MEASURES The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net incom
Slide 18: Reconciliation of Non-GAAP Financial Measures
17 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, (in thousands) 2015 2015 2015 2014 2014 2015 2014 CORE PERFORMANCE MEASURES Net interest income 30,006$ 29,280$ 29,045$ 30,816$ 27,444$ 88,331$ 86,552$ Less: Incremental accretion income 2,919 3,
Slide 19: Q & A Third Quarter Earnings Release
18 Q & A THIRD QUARTER EARNINGS RELEASE
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