Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q4 2020 Earnings Presentation
25 slides from Enterprise Financial Services's earnings presentation, Jan 25, 2021
Slide 1: Enterprise Financial Services Corp 2020 Fourth Quarter Earnings Webcast
Enterprise Financial Services Corp 2020 Fourth Quarter Earnings Webcast
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information in this report may contain “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. Such forward-looking statements may include projections b
Slide 3: Financial Highlights - Q4 '20
Financial Highlights - Q4 '20 Capital • Tangible Common Equity/Tangible Assets - 8.40%; Adjusted for PPP* 9.07% • Quarterly dividend of $0.18 per share • Net Income $28.9 million; Earnings per Share $1.00 • PPNR* $47.5 million • ROAA 1.26%; PPNR ROAA* 2.07% • ROATCE* 15.73% Earnings *A Non-GAAP Meas
Slide 4: Areas of Focus
Areas of Focus Integration of Seacoast Commerce Banc Holdings and Seacoast Commerce Bank • Closed on November 12, 2020 Organic Loan Growth and Pipeline Leverage PPP Opportunities • Cross-selling Opportunities • Client acquisition Workforce Opportunities • Operational Efficiencies • Remote Workforce
Slide 5: Total Loan Trends
Total Loan Trends In Millions 36% T otal Lo an Gro wth PPP $808 PPP $819 PPP* $613 *Represents PPP loans originated by EFSC Seacoast $1,224 5
Slide 6: Loan Details
Loan Details Q4 ’20 Q3 ’20 QTRChange Seacoast Q4 ’19 LTM Change C&I $ 1,103 $ 1,075 $ 28 $ 16 $ 1,179 $ (76) CRE, Investor Owned 1,421 1,282 139 107 1,288 133 CRE, Owner Occupied 826 767 59 98 713 113 SBA loans1 896 15 881 875 19 877 SBA PPP loans 699 819 (120) 86 — 699 Sponsor Finance 396 367 29 —
Slide 7: Total Loans By Business Unit
Total Loans By Business Unit In Millions Note: Q3 '20 and Q4 '20 excludes PPP loans **Acquisition of Seacoast closed on November 12, 2020 *Q4 '20 includes acquired Seacoast SBA loans 7
Slide 8: PPP Loans
➢ 1% coupon, 2.6% average yield, 3.47% YTD average yield ➢ 99% 2 year maturity; 1% 5 year maturity ➢ No PPP loans or servicing have been sold ➢ Forgiveness process started October 29, 2020 ➢ 2,066 PPP loans totaling $39.3 million are < $50,000; $1.6 million in fees ➢ $218.5 million has been forgiven
Slide 9: Deposit Trend
Last Twelve Months Growth Rate = 38% In Millions Deposit Trend u Seacoast $1,060 9
Slide 10: Loan Portfolio
Loan Portfolio CRE 31.0% Construction 6.6% Residential 4.4% Other 2.4% Sponsor Finance 5.5% LIPF 7.4% Tax Credit 5.3% SBA 12.4% PPP 9.7% C&I 15.3% Loans by Product Type Real Estate/ Rental/Leasing 23.5% Finance and Insurance 14.5% Manufacturing 8.4% Other Services 7.9% Accomodation/Food Service 7.9%
Slide 11: Loan Deferrals
Loan Deferrals Loan Deferrals by Loan Type Total Deferrals in 2020 Loans Moved out of Deferral Status Loans in Deferral Status at 12/31/20 Multiple Round Deferrals (Included in 12/31/20 balance) Commercial Real Estate $426,276 $400,154 $26,122 $8,327 Commercial and Industrial 140,815 125,107 15,708
Slide 12: Allowance for Credit Losses for Loans
Allowance for Credit Losses for Loans $110,270 $123,270 Q4 '20 In Thousands ACL Loans ACL as a % of Loans Commercial and industrial $ 58,812 $ 3,088,995 1.90 % Commercial real estate 49,074 3,087,827 1.59 % Construction real estate 21,413 546,686 3.92 % Residential real estate 4,585 319,179 1.44 % O
Slide 13: Earnings Per Share Trend - 2020
Earnings Per Share Trend - 2020 2019 Net Interest Income Provision for Credit Losses Noninterest Income 2020Change in Shares Noninterest Expense Merger-Related Expense Change in EPS PPP Acceleration $3.55 $2.76 Change in Effective Tax Rate Seacoast Day 2 Swap Termination 13
Slide 14: Earnings Per Share Trend - Q4 2020
Earnings Per Share Trend - Q4 2020 Change in EPS Q3 '20 Q4 '20Net Interest Income Noninterest Income PPP Acceleration Provision for Credit Losses Merger-Related Expense $0.68 $1.00 Change in Shares Noninterest Expense Change in Effective Tax Rate Seacoast Day 2 Swap Termination 14
Slide 15: Net Interest Income Trend
Net Interest Income Trend In Millions 26% NII Gro wth PPP Acceleration $5.2 Seacoast $8.0 15
Slide 16: Credit Trends for Loans
Credit Trends for Loans Q4 '20 Q4 '19 NPAs/Assets = 0.45% 0.45% NPLs/Loans = 0.53% 0.50% ALLL/NPLs = 354.9% 163.8% ALLL/Loans** = 2.31% 0.81% Net Charge-offs (Recoveries) In Millions bps bps bps bps bps In Millions Loan Growth and Line of Credit Utilization* *Excludes acquisition of Seacoast for Q4
Slide 17: Change in Allowance for Credit Losses for Loans
Change in Allowance for Credit Losses for Loans In Thousands $123,270 $136,371 • New loans and changes in composition of existing loans • Changes in risk ratings, past due status and reserves on individually evaluated loans • Charge-offs and recoveries • Change in macro- economic and qualitative fac
Slide 18: Noninterest Income Trend
Noninterest Income Trend Other Fee Income DetailFee Income In Millions 18
Slide 19: Operating Expenses Trend
Operating Expenses Trend * A Non-GAAP Measure, Refer to Appendix for Reconciliation In Millions 19
Slide 20: Capital
Capital *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Excludes PPP loans for Q2, Q3, and Q4 2020 In Thousands Holding Company liquidity position continues to support strategic capital planning initiatives, including debt service and dividends. 8.0% 11.4% 11.0% 11.4% 11.6% 12.1% 20
Slide 21: Appendix
Appendix Fourth Quarter 2020 Earnings Webcast
Slide 22: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common e
Slide 23: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,078,975 $ 882,267 $ 867,963 $ 846,436 $ 867,185 Le
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 77,446 $ 63,354 $ 65,833 $ 63,368 $ 61,613 Noninterest income 18,506 12,629 9,960 13,408 14,418
Slide 25: Q & A
Q & A Fourth Quarter 2020 Earnings Webcast
Enterprise Financial Services — Q4 2020 Earnings Presentation on 6ix