Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q2 2021 Earnings Presentation
23 slides from Enterprise Financial Services's earnings presentation, Jul 27, 2021
Slide 1: 2021 Second Quarter Earnings Webcast
Enterprise Financial Services Corp 2021 Second Quarter Earnings Webcast Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this report may be considered forward-looking statements regarding Enterprise, including its wholly- owned subsidiary EB&T, FCBP, including its wholly-owned subsidiary First Choice, and Enterprise’s proposed acquisition of FCBP and First Cho
Slide 3: Financial Highlights - 2Q21
Financial Highlights - 2Q21 Capital • Tangible Common Equity/Tangible Assets* - 8.32%; Adjusted for PPP* 8.66% • Quarterly dividend of $0.18 per share; increased 6% to $0.19 in third quarter 2021 • Repurchased 251,637 shares at an average price of $47.00 per share • Net Income $38.4 million; Earning
Slide 4: Areas of Focus
Areas of Focus Integration of First Choice Bancorp and First Choice Bank • Closed on July 21, 2021 • System conversion planned for fourth quarter 2021 Organic Loan Growth and Pipeline Leverage PPP Opportunities • Cross-selling Opportunities • Client Acquisition Workforce Opportunities • Operational
Slide 5: Total Loan Trends
Total Loan Trends In Millions 18% Total Lo an Growth PPP $819 PPP* $613 PPP $738 *Represents PPP loans originated by EFSC Seacoast $1,224 PPP $397 PPP $808 5
Slide 6: Loan Details
Loan Details 2Q21 1Q21 QTR Change 2Q20 LTM Change C&I $ 1,116 $ 1,049 $ 67 $ 1,052 $ 64 CRE, Investor Owned 1,467 1,491 (24) 1,299 168 CRE, Owner Occupied 789 806 (17) 782 7 SBA loans*1 1,011 941 70 17 994 Sponsor Finance* 464 394 70 383 81 Life Insurance Premium Financing* 564 543 21 521 43 Tax Cre
Slide 7: Total Loans By Business Unit
Total Loans By Business Unit In Millions Note: Excludes PPP and Other loans **Acquisition of Seacoast closed on November 12, 2020 *1Q21 and 2Q21 include acquired Seacoast SBA loans 7
Slide 8: Specialty Deposits
Specialty Deposits Community Associations $495 million in deposit accounts specifically designed to serve the needs of community associations. Property Management $362 million in deposits. Specializing in the compliance on Property Management Trust Accounts. Third-Party Escrow $101 million in deposi
Slide 9: Earnings Per Share Trend - 2Q21
Earnings Per Share Trend - 2Q21 Change in EPS 1Q21 2Q21Net Interest Income Noninterest Income Provision for Credit Losses Merger-Related Expense $0.96 $1.23 Noninterest Expense 9
Slide 10: Net Interest Income Trend
Net Interest Income Trend In Millions 24% NII Growth PPP Income $10.3 PPP Income $4.1 PPP Income $5.2 PPP Income $8.5 PPP Income $7.9 *Seacoast acquisition completed 11/12/20. 10
Slide 11: Net Interest Margin
Net Interest Margin Components of Interest-bearing LiabilitiesComponents of Interest-earning Assets 1Q21 3.50 % Cash/Liquidity (0.05) % Loans 0.01 % Investments (0.01) % Cost of funds 0.01 % 2Q21 3.46 % Net Interest Margin Trend Net Interest Margin Bridge 0.37% 11
Slide 12: Credit Trends for Loans
Credit Trends for Loans 2Q21 1Q21 2Q20 NPAs/Assets 0.44% 0.42% 0.55% NPLs/Loans 0.58% 0.50% 0.68% ALLL/NPLs 303.4% 358.8% 265.9% ALLL/Loans** 2.09% 2.22% 2.07% Net Charge-offs (Recoveries) In Millions bps bps bps bps bps In Millions Loan Growth and Line of Credit Utilization* *Excludes acquisition o
Slide 13: Allowance for Credit Losses for Loans
Allowance for Credit Losses for Loans In Thousands $131,527 $128,185• New loans and changes in composition of existing loans • Changes in risk ratings, past due status and reserves on individually evaluated loans • Charge-offs and recoveries 2Q21 In Thousands ACL Loans ACL as a % of Loans Commercial
Slide 14: Noninterest Income Trend
Noninterest Income Trend Other Fee Income DetailFee Income In Millions 13.1% 16.6% 19.3% 12.5% 16.5% 14
Slide 15: Operating Expenses Trend
Operating Expenses Trend * A Non-GAAP Measure, Refer to Appendix for Reconciliation In Millions 15
Slide 16: Capital
Capital *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Excludes PPP loans. 8.0% 11.4% 11.6% 12.1% 12.3% 12.3% EFSC Capital Strategy: Low Cost - Highly Flexible High Capital Retention Rate – Strong earnings profile – Sustainable dividend profile Supporting Robust Asset Growth – Organic lo
Slide 17: Appendix
Appendix Second Quarter 2021 Earnings Webcast
Slide 18: Earnings Per Share Trend: Year-over-Year
Earnings Per Share Trend: Year-over-Year 2Q20 YTD Net Interest Income Provision for Credit Losses Noninterest Income 2Q21 YTDChange in Shares Noninterest Expense Merger-Related Expense Change in EPS $1.04 $2.18 Change in Effective Tax Rate 18
Slide 19: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common e
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,118,301 $ 1,092,497 $ 1,078,975 $ 882,267 $ 867,96
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 81,738 $ 79,123 $ 77,446 $ 63,354 $ 65,833 Noninterest income 16,204 11,290 18,506 12,629 9,960
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended Six Months ended ($ in thousands) Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Jun 30, 2021 Jun 30, 2020 CORE PERFORMANCE MEASURES Net interest income $ 81,738 $ 79,123 $ 77,446 $ 63,354 $ 65,833 $ 160,861 $ 129,201 Less
Slide 23: Q & A
Q & A Second Quarter 2021 Earnings Webcast
Enterprise Financial Services — Q2 2021 Earnings Presentation on 6ix