Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q4 2017 Earnings Presentation
24 slides from Enterprise Financial Services's earnings presentation, Jan 22, 2018
Slide 1: 2017 Fourth Quarter Earnings Webcast
Enterprise Financial Services Corp 2017 Fourth Quarter Earnings Webcast
Slide 2: Forward-Looking Statements
2 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 u
Slide 3: 2017 Focus
3 2017 Focus • Sustain Core Growth Trends • Successfully Convert and Integrate Jefferson Countty Bancshares ("JCB") • Maintain Focus on Long-Term Strategic Development
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 Q4 2017
Slide 5: 2018 Focus
5 2018 Focus • Achieve Organic Loan and Deposit Growth • Maintain Focus on Long-Term Strategic Development • Improve Overall Sales Culture Through a Refreshed Sales Process and External Message
Slide 6: Portfolio Loan Trends
6 Q4' 16 Q1' 17 Q2' 17 Q3 '17 Q4' 17 $3,118 $3,859 $3,997 $4,067 $3,853 Portfolio Loan Trends In Millions 9% T otal Loan Growth * *Note: 30% including acquisition of JCB JCB $678
Slide 7: Commercial & Industrial Loan Trends
7 Commercial & Industrial Loan Trends Q4'16 Q1'17 Q2'17 Q3 '17 Q4 '17 $1,633 $1,796 $1,862 $1,919 $1,774 In Millions 18% C&I Growt h JCB $79
Slide 8: Portfolio Loan Details
8 Portfolio Loan Details Q4 ’17 Q3 ’17 QTRChange Q4 ‘16 LTM Change Enterprise Value Lending $ 408 $ 456 $ (48) $ 389 $ 19 C&I General 912 886 26 794 118 Life Insurance Premium Financing 365 331 34 306 59 Tax Credit 235 189 46 144 91 Commercial Real Estate 1,669 1,639 30 1,089 580 Residential Real Es
Slide 9: Portfolio Loans By Business Unit
9 Portfolio Loans By Business Unit Specialized Lending Q4 '16 Q3 '17 Q4 '17 $745 $860 $856 In Millions St. Louis Q4 '16 Q3 '17 Q4 '17 $1,556 $2,225 $2,262 Arizona Q4 '16 Q3 '17 Q4 '17 $226 $277 $291 Kansas City Q4 '16 Q3 '17 Q4 '17 $591 $635 $658
Slide 10: Deposit Trend
10 Last Twelve Months Growth Rate = 29%, 5% Excluding Acquisition of JCB In Millions Deposit Trend Deposits JCB DDA % Q4'16 Q1'17 Q2'17 Q3 '17 Q4 '17 $3,233 $3,921 $4,059 $4,156 $4,032 26.8% 25.7% 26.0% 25.8% 27.0% $774 u
Slide 11: Earnings Per Share - Full Year
11 Earnings Per Share - Full Year * A Non GAAP Measure, Refer to Appendix for Reconciliation Reported vs. Core EPS* $2.07 $0.52 $(0.20) $0.18 $0.01 $2.58 EPS Merger Related Expenses Core EPSDTA Revaluation Non-Core Acquired Assets Other
Slide 12: Earnings Per Share Trend - Full Year
12 Earnings Per Share Trend - Full Year Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation $2.03 $0.78 $(0.12) $0.10 $(0.38) $0.17 $2.58 Changes in Core EPS* Q4 '16 Net Interest Income Portfolio Loan Loss Provision Noninterest Income Noninterest Expense Q4 '17Income Tax Expense
Slide 13: Earnings Per Share Trend - Q4 2017
13 Earnings Per Share Trend - Q4 2017 Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation $0.66 $0.04 $(0.02) $0.08 $(0.04) $0.05 $0.77 Changes in Core EPS* Q3 '17 Net Interest Income Portfolio Loan Loss Provision Noninterest Income Noninterest Expense Q4 '17Income Tax Expense
Slide 14: Core Net Interest Income Trend
14 Core Net Interest Income Trend* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation In Millions Core Net Interest Income FTE Core Net Interest Margin Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 $32.2 $37.6 $43.0 $44.1 $44.9 3.44% 3.63% 3.76% 3.75% 3.73% 40% Core NII Growt h
Slide 15: Credit Trends for Portfolio Loans
15 Credit Trends for Portfolio Loans Portfolio Loan Growth Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 $80 $56 $7 $138 $70 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 12 (1) 64 8 33 Q4 2017 EFSC Peer(3) NPA’s/Assets = 0.31% 0.66% NPL’s/Loans = 0.39% 0.79% ALLL/NPL’s = 243.3% 120.2% ALLL/Loans = 0.95% 1.05% In Million
Slide 16: Core Fee Income
16 Core Fee Income* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation Other Core Fee Income DetailCore Fee Income In Millions Wealth Management Deposit Services Charge Other State Tax Credits Card Services Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 $1.7 $1.8 $2.0 $2.1 $2.2 $2.2 $2.5 $2.8 $2.8
Slide 17: Operating Expenses Trend
17 Operating Expenses Trend* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation In Millions Other Occupancy Employee compensation and benefits Core Efficiency Ratio* Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 $7.0 $7.8 $9.7 $9.6 $10.4 $1.7 $1.9 $2.3 $2.4 $2.4 $12.4 $21.1 $15.2 $24.9 $15.8 $27.
Slide 18: Effective Tax Rate Reconciliation
18 Effective Tax Rate Reconciliation 2017 Q4 2017 Q3 2017 Federal Tax Rate 35.00% 35.00% 35.00% State Tax, Net of Federal Benefit 1.94% 1.94% 1.97% Excess Tax Benefits (2.47)% (1.25)% (0.01)% Tax Credit Investments (1.89)% (3.62)% (2.69)% Other Tax Adjustments (2.28)% (3.90)% (1.77)% Pre-DTA Effecti
Slide 19: Positive Momentum in Core Earnings Per Share
19 Positive Momentum in Core Earnings Per Share* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 $0.33 $0.35 $0.38 $0.44 $0.49 $0.47 $0.49 $0.49 $0.59 $0.59 $0.56 $0.66 $0.77 133% Core EPS Gro
Slide 20: Appendix
Appendix Fourth Quarter 2017 Earnings Webcast
Slide 21: Earnings Per Share - Q4 2017
21 Earnings Per Share - Q4 2017 * A Non GAAP Measure, Refer to Appendix for Reconciliation Reported vs. Core EPS* $0.32 $0.52 $(0.07) $0.77 EPS Non-Core Acquired Assets Core EPSDTA Revaluation
Slide 22: Use of Non-GAAP Financial Measures
22 Use of Non-GAAP Financial Measures The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as core net inter
Slide 23: Reconciliation of Non-GAAP Financial Measures
23 Reconciliation of Non-GAAP Financial Measures For the Quarter ended ($ in thousands, except per share data) Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 CORE PERFORMANCE MEASURES Net interest income $ 47,404 $ 45,625 $ 45,633 $ 38,642 $ 35,454 Less: Incremental accretion incom
Slide 24: Q & A
Q & A Fourth Quarter 2017 Earnings Webcast
Enterprise Financial Services — Q4 2017 Earnings Presentation on 6ix