Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q4 2014 Earnings Presentation
17 slides from Enterprise Financial Services's earnings presentation, Jan 22, 2015
Slide 1: 2014 Fourth Quarter Earnings Release
Enterprise Financial Services Corp 2014 Fourth Quarter Earnings Release ACCEL ERAT ING QUAL IT Y GROWT H
Slide 2: Forward-Looking Statements
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 “may,
Slide 3: 2014 Accomplishments
Delivered Robust Portfolio Loan Growth Reversed Core Net Interest Income Trends Defended Core Net Interest Margin Maintained High Credit Quality Performance Improved Operating Leverage 2014 Accomplishments 2
Slide 4: Portfolio Loan Growth
Portfolio Loan Growth $2,137 $2,174 $2,251 $2,294 $2,434 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 In Millions 3
Slide 5: Commercial & Industrial Loan Growth
$1,041 $1,060 $1,135 $1,172 $1,270 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 Commercial & Industrial Loan Growth In Millions 4
Slide 6: Drivers of 2014 Portfolio Loan Growth
Drivers of 2014 Portfolio Loan Growth Enterprise Value Lending, 18.6% Life Insurance Premium Finance, 23.0% General Commercial & Industrial, 35.2% Commercial/ Construction RE, 6.4% Residential RE, 9.0% Consumer & Other, 7.7% Enterprise Value Lending Life Insurance Premium Finance General Commercial
Slide 7: Portfolio Loans Grow in Each Region
Portfolio Loans Grow in Each Region $1,532 $507 $98 St. Louis Kansas City Arizona 12/31/2013 $1,712 $583 $139 St. Louis Kansas City Arizona 12/31/2014 In Millions In Millions 6
Slide 8: Full Year Earnings Per Share Trends
7 Full Year Earnings Per Share Trends $1.47 < $0.13> $0.06 < $0.17 > < $0.02 > $0.08 $1.29 2013 PCI Loan NII Core Asset NII Portfolio Loan Loss Provision Non-Interest Income Operating Expenses 2014 In Millions Changes in Core EPS* * A Non GAAP Measure Refer to Appendix for Reconciliation
Slide 9: Reported vs. Core EPS 2014
8 Full Year Earnings Per Share Trends $22,387 $1.38 $1.32 $1.20 $1.35 $0.09 $0.03 < $0.03> < $0.15> $1.29 EPS Debt Extinguishment Facilities Disposal Transaction Fee Income Non-Core Covered Assets Core EPS In Millions * A Non GAAP Measure Refer to Appendix for Reconciliation (1) FDIC Loss Sharing Ag
Slide 10: Positive Momentum in Core Earnings Per Share
Positive Momentum in Core* Earnings Per Share $0.28 $0.31 $0.37 $0.33 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 9
Slide 11: Net Interest Income Driving Core Revenue Growth
Net Interest Income Driving Core Revenue Growth* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $23.7 $24.2 $24.9 $25.7 3.44% 3.41% 3.41% 3.45% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 $11.0 $12.0 $13.0 $14.0
Slide 12: Credit Trends for Portfolio Loans
Credit Trends for Portfolio Loans 8 bps 15 bps -5 bps 10 bps Q1 '14 Q2 '14 Q3 '14 Q4 '14 0 Net Charge-offs (1) 2014 NCO = 7 bps 2013 NCO = 31 bps (1) Portfolio loans only, excludes PCI loans $36.7 $77.1 $43.8 $139.1 0 50 100 150 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Portfolio Loan Growth $1.0 $1.3 $0.1 $2.0 $
Slide 13: Managed Operating Expenses Improving Efficiency
Managed Operating Expenses* Improving Efficiency In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $20.4 $19.5 $19.3 $20.2 68.2% 64.5% 62.8% 62.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 0 6 12 18 24 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Operating Expenses* Core Efficiency Ra
Slide 14: Financial Priorities
Continued Growth in Core EPS Drive Net Interest Income Growth in Dollars with Favorable Loan Growth Trends Defend Net Interest Margin Maintain High Quality Credit Profile Achieve Further Improvement in Operating Leverage Enhance Deposit Levels to Support Growth Financial Priorities 13
Slide 15: Appendix
AAR FINANCIAL’
Slide 16: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures 15 The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net incom
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 16 Dec 31, Sep 30, June 30, March 31, Dec 31, Dec 31, Dec 31, (in thousands) 2014 2014 2014 2014 2013 2014 2013 CORE PERFORMANCE MEASURES Net interest income 30,816$ 27,444$ 28,742$ 30,366$ 32,371$ 117,368$ 135,152$ Less: Incremental accretion income (5,
Enterprise Financial Services — Q4 2014 Earnings Presentation on 6ix