Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q3 2016 Earnings Presentation
20 slides from Enterprise Financial Services's earnings presentation, Oct 25, 2016
Slide 1: 2016 Third Quarter Earnings Release
Enterprise Financial Services Corp 2016 THIRD QUARTER EARNINGS RELEASE Filed by Enterprise Financial Services Corp Pursuant to Rule 425 of the Securities Act of 1933 and deemed filed pursuant to Rule 14a-6(b) of the Securities Exchange Act of 1934 Subject Company: Jefferson County Bancshares, Inc. C
Slide 2: Forward-looking statements
2 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 of terms such as “may,”
Slide 3: 2016 Objectives
3 SUSTAIN CORE GROWTH TRENDS CONTINUE INVESTMENT IN BANKING BUSINESS – SOLIDIFY LOAN AND DEPOSIT GENERATION CAPABILITIES ELEVATE FOCUS ON GROWTH IN WEALTH & OTHER FEE BUSINESSES 2016 OBJECTIVES
Slide 4: Financial Scorecard
4 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 SCORECARD 11% 16% 13
Slide 5: Portfolio Loan Trends
5 PORTFOLIO LOAN TRENDS $2,602 $2,751 $2,833 $2,884 $3,038 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 In Millions
Slide 6: Commercial & Industrial Loan Trends
6 $1,365 $1,484 $1,545 $1,541 $1,599 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 COMMERCIAL & INDUSTRIAL LOAN TRENDS In Millions
Slide 7: Portfolio Loan Details
7 PORTFOLIO LOAN DETAILS 9/30/16 6/30/16 QTR CHANGE 9/30/15 LTM CHANGE ENTERPRISE VALUE LENDING $ 395 $ 354 $ 41 $ 283 $ 112 C&I GENERAL 756 738 18 689 67 LIFE INSURANCE PREMIUM FINANCING 299 296 3 248 51 TAX CREDIT 149 153 (4) 145 4 COMMERCIAL REAL ESTATE 1,045 971 74 902 143 RESIDENTIAL 234 211 23
Slide 8: Portfolio Loans by Business Unit
8 PORTFOLIO LOANS BY BUSINESS UNIT $1,341 $1,387 $1,484 $1,100 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 9/30/2015 12/31/2015 9/30/2016 St. Louis $541 $535 $586 0 200 400 600 800 1000 1200 1400 9/30/2015 12/31/2015 9/30/2016 $164 $190 $218 0 500 1000 1500 9/30/2015 12/31/2015 9/
Slide 9: Deposit Trends
9 DEPOSIT TRENDS $2,814 $2,785 $2,932 $3,028 $3,125 24.6% 25.8% 24.5% 24.9% 24.4% -30.0% -5.0% 20.0% 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 Deposits DDA % Last Twelve Months Growth Rate = 11%
Slide 10: Core Fee Income
10 CORE FEE INCOME* $1.8 $1.7 $1.7 $1.6 $1.7 $2.0 $2.0 $2.0 $2.2 $2.2 $0.3 $1.7 $0.5 $0.2 $0.2 $1.8 $1.7 $1.8 $2.1 $2.7 $5.9 $7.1 $6.0 $6.1 $6.8 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Wealth Management Deposit Service Charges State Tax Credits Other $0.6 $0.6 $1.0 $0.4 $0.5 $0.3 $0.7 $0.8 $0.8 $0.2 $0.1 $0.2
Slide 11: Reported vs. Core EPS
11 EARNINGS PER SHARE $0.59 < $0.11> $0.01 $0.49 EPS Non-Core Acquired Assets Other Non-Core Expenses Core EPS In Millions * A Non GAAP Measure, Refer to Appendix for Reconciliation REPORTED VS. CORE EPS* Q3 2016
Slide 12: Earnings Per Share Trend
12 EARNINGS PER SHARE TREND $0.49 $0.04 < $0.07> $0.02 $0.01 $0.49 Q2 '16 Net Interest Income Portfolio Loan Loss Provision Non Interest Income Non Interest Expense Q3 '16 In Millions CHANGES IN CORE EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
Slide 13: Core Net Interest Income Trend
13 CORE NET INTEREST INCOME TREND* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $27.1 $28.7 $29.6 $30.2 $31.5 3.41% 3.50% 3.54% 3.52% 3.54% 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 $28.0 $29.0 $30.0 $3
Slide 14: Credit Trends for Portfolio Loans
14 CREDIT TRENDS FOR PORTFOLIO LOANS 2 bps -10 bps -1 bps -6 bps 14 bps Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Net Charge-offs (1) (1) Portfolio loans only, excludes PCI (Purchased Credit Impaired) loans Q3 2016 EFSC PEER(2) NPA’S/ASSETS = 0.59% 0.62% NPL’S/LOANS = 0.66% 0.69% ALLL/NPL’S = 188% 164% ALL
Slide 15: Operating Expenses Trend
15 OPERATING EXPENSES TREND* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $6.2 $6.5 $6.1 $6.5 $6.4 $1.6 $1.7 $1.7 $1.6 $1.7 $11.5 $11.8 $12.6 $12.3 $12.1 58.6% 56.1% 57.4% 56.3% 52.8% 0 5 10 15 20 25 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Other Occupancy Employee compensa
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 $0.49 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 75% Core EPS Growth from Q1 2014 to Q3 2016
Slide 17: Appendix
Appendix
Slide 18: Use of Non-GAAP Financial Measures
18 USE OF NON-GAAP FINANCIAL MEASURES The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net inter
Slide 19: Reconciliation of Non-GAAP Financial Measures
19 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, (in thousands) 2016 2016 2016 2015 2015 2016 2015 CORE PERFORMANCE MEASURES Net interest income 33,830$ 33,783$ 32,428$ 32,079$ 30,006$ 100,041$ 88,331$ Less: Incremental accretion income 2,296 3
Slide 20: Q & A Third Quarter 2016 Earnings Webcast
20 Q & A THIRD QUARTER 2016 EARNINGS WEBCAST
Enterprise Financial Services — Q3 2016 Earnings Presentation on 6ix