Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q3 2019 Earnings Presentation
21 slides from Enterprise Financial Services's earnings presentation, Oct 21, 2019
Slide 1: Enterprise Financial Services Corp 2019 Third Quarter Earnings Webcast
Exhibit 99.2 Enterprise Financial Services Corp 2019 Third Quarter Earnings Webcast
Slide 2: Forward-Looking Statements
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 use
Slide 3: Financial Scorecard Q3 2019 Compared to Q3 2018
Financial Scorecard Q3 2019 Compared to Q3 2018 Continued Growth in EPS 11% • Drive Net Interest Income Growth in Dollars with Favorable Loan Growth Trends 31% • Defend Core Net Interest Margin1 5 bps • Maintain High Quality Credit Profile 10 bps NPLs/Loans • Achieve Further Improvement in Core Oper
Slide 4: 2019 Focus
2019 Focus • Closing and Integration of the Trinity Acquisition • Achieve Organic Loan and Deposit Goals • Continued Incremental Improvement of Our Sales and Operational Processes 4
Slide 5: Total Loan Trends
Total Loan Trends 23% Total Loan Growth* $5,228 $5,149 $5,017 In Millions Trinity $4,350 $682 $4,267 Q3' 18 Q4' 18 Q1' 19 Q2' 19 Q3' 19 *Note: 7% Excluding Acquisition of Trinity 5
Slide 6: Commercial & Industrial Loan Trends
Commercial & Industrial Loan Trends 13% C&I Growth* In Millions $2,303 $2,265 $2,227 Trinity $2,123 $65 $2,036 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 *Note: 10% Excluding Acquisition of Trinity 6
Slide 7: Loan Details
Loan Details Q3 ’19 Q2 ’19 QTR Q3 ’18 LTM Trinity2 In Millions Change Change C&I - General $ 1,175 $ 1,104 $ 71 $ 970 $ 205 $ 65 CRE, Investor Owned - General 1,281 1,235 46 846 435 305 CRE, Owner Occupied - General 566 591 (25) 482 84 92 Enterprise Value Lending1 417 446 (29) 442 (25) — Life Insura
Slide 8: Total Loans By Business Unit
Total Loans By Business Unit In Millions Specialized Lending St. Louis Kansas City $2,300 $2,339 $2,420 $991 $972 $900 $719 $783 $785 Q3 '18 Q2 '19 Q3 '19 Q3 '18 Q2 '19 Q3 '19 Q3 '18 Q2 '19 Q3 '19 Arizona New Mexico* $678 $663 $348 $358 $388 Q3 '18 Q2 '19 Q3 '19 Q3 '18 Q2 '19 Q3 '19 * Acquisition of
Slide 9: Deposit Trend
Deposit Trend 25.2% 24.0% 23.0% 21.4% 21.3% In Millions $5,624 $5,537 $5,559 Trinity $1,094 $4,588 $4,210 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Deposits Trinity DDA % u Last Twelve Months Growth Rate = 34%, 8% Excluding Acquisition of Trinity 9
Slide 10: Earnings Per Share Trend - Q3 2019
Earnings Per Share Trend - Q3 2019 Change in EPS $0.30 $(0.01) $0.03 $0.05 $0.03 $1.08 $0.68 Q2 '19 Incremental Noninterest Noninterest Merger-Related Change in Q3 '19 Accretion Income Expense Expenses Shares/ ETR 10
Slide 11: Net Interest Income Trend
Net Interest Income Trend 3.77% 3.79% 3.80% 3.74% 3.69% In Millions $61.7 $63.0 $60.8 $60.9 $52.3 $50.6 $48.1 $51.2 $47.6 $48.5 28% Core NII Growth Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Core Net Interest Income* Incremental Accretion On Non-core Acquired Assets FTE Core Net Interest Margin* Note: * A N
Slide 12: Credit Trends for Loans
Credit Trends for Loans Net Charge-offs (annualized) Total Loan Growth (1) In Millions $132 26 bps 23 bps $83 $79 16 bps 8 bps 8 bps $(9) $(15) Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Provision for Loan Losses Q3 2019 EFSC Peer(2) In Millions NPAs/Assets = 0.33% 0.62% $
Slide 13: Noninterest Income Trend
Noninterest Income Trend In Millions Fee Income Other Fee Income Detail $13.6 $12.0 $1.2 $4.0 $10.7 $0.6 $4.0 $2.9 $2.3 $9.2 $1.0 $8.4 $0.2 $2.9 $0.2 $0.2 $2.3 $2.4 $2.5 $1.4 $1.7 $2.3 $0.4 $0.2 $0.2 $0.2 $1.8 $1.8 $1.8 $0.3 $0.4 $1.7 $0.1 $1.4 $0.3 $3.4 $3.2 $0.3 $0.2 $3.0 $0.2 $2.9 $2.9 $0.2 $0.4
Slide 14: Operating Expenses Trend
Operating Expenses Trend 54.1% 53.3% 52.2% 51.7% 49.8% In Millions $49.1 $10.3 $39.8 $38.2 $7.3 $0.4 $29.9 $30.7 $1.3 $0.7 $20.7 $20.8 $19.4 $16.3 $16.6 $3.2 $3.2 $2.4 $2.4 $2.6 $14.9 $13.8 $10.5 $10.4 $10.5 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Other Occupancy Employee compensation and benefits Merger
Slide 15: Positive Momentum in Earnings Per Share
Positive Momentum in Earnings Per Share $1.08 $1.02 $0.97 $0.95 Five-Year CAGR 21% $0.90 $0.69 $0.67 $0.67 $0.68 $0.61 $0.59 $0.56 $0.54 $0.52 $0.50 $0.48 $0.46 $0.43 $0.41 $0.32 $0.30 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 Q2 '18 Q3
Slide 16: Third Quarter 2019 Earnings Webcast Appendix
Third Quarter 2019 Earnings Webcast Appendix
Slide 17: 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 core net interest
Slide 18: Effective Tax Rate Reconciliation
Effective Tax Rate Reconciliation YTD 2019 2018 Federal Tax Rate 21.00% 21.00% State Tax, Net of Federal Benefit 2.19% 2.32% Excess Tax Benefits (0.60)% (1.56)% Tax Credit Investments (0.98)% (4.66)% Merger Expenses 0.60% —% Other Tax Adjustments (2.07)% 0.23% Pre-DTA Effective Tax Rate 20.14% 17.33
Slide 19: Earnings Per Share Trend - 2019 Year to Date
Earnings Per Share Trend - 2019 Year to Date Change in EPS $0.26 $0.10 $1.23 $(0.02) $(0.77) $(0.66) $(0.50) $2.81 $2.45 2018 Net Interest Incremental Loan Loss Noninterest Noninterest Merger-Related Change in 2019 Income Accretion Provision Income Expense Expense Shares/ETR 19
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures For the Quarter ended For the Nine Months ended Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Sep 30, Sep 30, ($ in thousands) 2019 2019 2019 2018 2018 2019 2018 CORE PERFORMANCE MEASURES Net interest income $ 63,046 $ 61,715 $ 52,343 $ 50,593 $ 48,093 $ 177,1
Slide 21: Third Quarter 2019 Earnings Webcast Q & A
Third Quarter 2019 Earnings Webcast Q & A
Enterprise Financial Services — Q3 2019 Earnings Presentation on 6ix