Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q1 2018 Earnings Presentation
21 slides from Enterprise Financial Services's earnings presentation, Apr 23, 2018
Slide 1: Enterprise Financial Services Corp 2018 First Quarter Earnings Webcast
Enterprise Financial Services Corp 2018 First 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: Financial Scorecard
3 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 Q1 2018
Slide 4: 2018 Focus
4 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 5: Portfolio Loan Trends
5 Q1' 17 Q2' 17 Q3 '17 Q4' 17 Q1' 18 $3,853 $3,859 $3,997 $4,067 $4,162 Portfolio Loan Trends In Millions 8% Total Loan Growt h
Slide 6: Commercial & Industrial Loan Trends
6 Commercial & Industrial Loan Trends Q1'17 Q2'17 Q3 '17 Q4 '17 Q1 '18 $1,774 $1,796 $1,862 $1,919 $1,982In Millions 12% C&I Growt h
Slide 7: Portfolio Loan Details
7 Portfolio Loan Details Q1 ’18 Q4 ’17 QTRChange Q1 ‘17 LTM Change C&I - General $ 946 $ 937 $ 9 $ 910 $ 36 CRE, Investor Owned - General 837 801 36 757 80 CRE, Owner Occupied - General 471 468 3 424 47 Enterprise Value Lending1 439 408 31 430 9 Life Insurance Premium Financing1 365 365 — 312 53 Res
Slide 8: Portfolio Loans By Business Unit
8 Portfolio Loans By Business Unit Specialized Lending Q1 '17 Q4 '17 Q1 '18 $793 $856 $877 In Millions St. Louis Q1 '17 Q4 '17 Q1 '18 $2,210 $2,233 $2,298 Arizona Q1 '17 Q4 '17 Q1 '18 $236 $291 $305 Kansas City Q1 '17 Q4 '17 Q1 '18 $614 $687 $682
Slide 9: Deposit Trend
9 Last Twelve Months Growth Rate = 6% In Millions Deposit Trend Deposits DDA % Q1'17 Q2'17 Q3 '17 Q4 '17 Q1 '18 $4,032 $3,921 $4,059 $4,156 $4,281 25.7% 26.0% 25.8% 27.0% 25.7% u
Slide 10: Earnings Per Share - Q1 2018
10 Earnings Per Share - Q1 2018 * A Non GAAP Measure, Refer to Appendix for Reconciliation Reported vs. Core EPS* $0.90 $(0.06) $0.84 EPS Core EPSNon-Core Acquired Assets
Slide 11: Earnings Per Share Trend - Q1 2018
11 Earnings Per Share Trend - Q1 2018 Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation $0.77 $0.02 $0.04 $(0.08) $(0.03) $0.12 $0.84 Changes in Core EPS* Q4 '17 Net Interest Income Portfolio Loan Loss Provision Noninterest Income Noninterest Expense Q1 '18Income Tax Expense
Slide 12: Core Net Interest Income Trend
12 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 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 $37.6 $43.0 $44.1 $44.9 $45.4 3.63% 3.76% 3.75% 3.73% 3.74% 21% Core NII Growt h
Slide 13: Credit Trends for Portfolio Loans
13 Credit Trends for Portfolio Loans Portfolio Loan Growth Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 $56 $7 $138 $70 $95 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 (1) 61 8 33 (2) Q1 2018 EFSC Peer(3) NPA’s/Assets = 0.30% 0.49% NPL’s/Loans = 0.38% 0.62% ALLL/NPL’s = 254.0% 145.2% ALLL/Loans = 0.98% 0.99% Net Charg
Slide 14: Core Fee Income
14 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 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 $1.8 $2.0 $2.1 $2.2 $2.1 $2.5 $2.8 $2.8 $2.9
Slide 15: Operating Expenses Trend
15 Operating Expenses Trend* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation In Millions Other Occupancy Employee compensation and benefits Core Efficiency Ratio* Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 $7.8 $9.7 $9.6 $10.4 $10.2 $1.9 $2.3 $2.4 $2.4 $2.4 $15.2 $24.9 $15.8 $27.8 $15.1 $27
Slide 16: Positive Momentum in Core Earnings Per Share
16 Positive Momentum in Core Earnings Per Share* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation Q1 '14 Q2 '14 Q3 '14 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 Q1 '18 $0.28 $0.31 $0.37 $0.33 $0.35 $0.38 $0.44 $0.49 $0.47 $0.49 $0.49 $
Slide 17: Appendix First Quarter 2018 Earnings Webcast
Appendix First Quarter 2018 Earnings Webcast
Slide 18: Effective Tax Rate Reconciliation
18 Effective Tax Rate Reconciliation Q1 2018 2017 Q4 2017 Federal Tax Rate 21.00% 35.00% 35.00% State Tax, Net of Federal Benefit 2.65% 1.94% 1.94% Excess Tax Benefits (4.06)% (2.47)% (1.25)% Tax Credit Investments (3.98)% (1.89)% (3.62)% Other Tax Adjustments (0.31)% (2.28)% (3.90)% Pre-DTA Effecti
Slide 19: Use of Non-GAAP Financial Measures
19 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 20: Reconciliation of Non-GAAP Financial Measures
20 Reconciliation of Non-GAAP Financial Measures For the Quarter ended ($ in thousands, except per share data) Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 CORE PERFORMANCE MEASURES Net interest income $ 46,171 $ 47,404 $ 45,625 $ 45,633 $ 38,642 Less: Incremental accretion incom
Slide 21: Q & A First Quarter 2018 Earnings Webcast
Q & A First Quarter 2018 Earnings Webcast
Enterprise Financial Services — Q1 2018 Earnings Presentation on 6ix