Enterprise Financial Reports Third Quarter 2024 Results

Rhea-AI Impact

(Low)

Rhea-AI Sentiment

(Neutral)

Tags

earnings

10/21/2024 - 04:05 PM

Third Quarter Results

Net income of $50.6 million, or $1.32 per diluted common share, compared to $1.19 in the linked quarter and $1.17 in the prior year quarter
Net interest margin of 4.17%, quarterly decrease of 2 basis points
Net interest income of $143.5 million, quarterly increase of $2.9 million
Total loans of $11.1 billion, quarterly increase of $79.9 million
Total deposits of $12.5 billion, quarterly increase of $182.9 million
Return on Average Assets (“ROAA”) of 1.36%, compared to 1.25% and 1.26% in the linked and prior year quarters, respectively
Return on Average Tangible Common Equity (“ROATCE”)¹ of 14.55%, compared to 13.77% and 14.49% in the linked and prior year quarters, respectively
Tangible common equity to tangible assets¹ of 9.50%, an increase of 32 basis points and 99 basis points from the linked and prior year quarters, respectively
Tangible book value per share¹ of $37.26, annualized quarterly increase of 25%
Repurchased 195,114 shares and increased quarterly dividend $0.01 to $0.28 per common share for the fourth quarter 2024

ST. LOUIS--(BUSINESS WIRE)-- Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), said today upon the release of EFSC’s third quarter earnings, “We are proud of our third quarter results, with a stable net interest margin, expansion in net interest income and an 11% increase in diluted earnings per share over the linked quarter. Our consistent return profile increased tangible book value per share 25% on an annualized basis from the linked quarter, and 20% over the prior year’s third quarter. With the strength of our balance sheet and capital position as a foundation, I believe we are well positioned to continue executing on the opportunities within our markets.”

Highlights

Earnings - Net income in the third quarter 2024 was $50.6 million, an increase of $5.1 million and $5.9 million compared to the linked and prior year quarters, respectively. Earnings per diluted common share for the third quarter 2024 was $1.32, compared to $1.19 and $1.17 for the linked and prior year quarters, respectively. Adjusted diluted earnings per common share¹ was $1.29 for the third quarter 2024, compared to $1.21 and $1.17 for the linked and prior year quarters, respectively.

Pre-provision net revenue (“PPNR”)¹ - PPNR of $65.1 million in the third quarter 2024 increased $1.8 million from the linked quarter and was relatively stable with the prior year quarter. The increase from the linked quarter was primarily due to higher noninterest income from sales of other real estate owned, and higher net interest income that benefited from an increase in average earning assets. The increase in operating revenue was partially offset by an increase in noninterest expense, primarily variable deposit services costs and employee compensation and benefits.

Net interest income and net interest margin (“NIM”) - Net interest income of $143.5 million for the third quarter 2024 increased $2.9 million and $1.8 million from the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income for the third quarter 2024 increased primarily due to higher interest-earning asset balances and an additional day in the quarter. NIM was 4.17% for the third quarter 2024, compared to 4.19% and 4.33% for the linked and prior year quarters, respectively. The total cost of deposits of 2.18% for the third quarter 2024 increased 2 basis points and 34 basis points from the linked and prior year quarters, respectively.

Noninterest income - Noninterest income of $21.4 million for the third quarter 2024 increased $5.9 million and $9.3 million from the linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily due to an increase in tax credit income, a net gain on the sale of other real estate owned and an increase in income on community development investments.

Noninterest expense - Noninterest expense of $98.0 million for the third quarter 2024 increased $4.0 million and $9.4 million from the linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily driven by higher employee compensation and variable deposit servicing costs. The Company continues to have success in recruiting new relationship managers and in deposit generation from existing relationships, both of which have contributed to an increase in average deposit balances. The increase from the prior year quarter was also affected by expenses related to the core system conversion.

Loans - Loans totaled $11.1 billion at September 30, 2024, an increase of $79.9 million from the linked quarter and an increase of $463.1 million from the prior year quarter. Average loans totaled $11.0 billion for both the current and linked quarter and $10.5 billion in the prior year quarter.

Asset quality - The allowance for credit losses to total loans was 1.26% at September 30, 2024, compared to 1.27% at June 30, 2024 and 1.34% at September 30, 2023. The ratio of nonperforming assets to total assets was 0.22% at September 30, 2024, compared to 0.33% and 0.40% at June 30, 2024 and September 30, 2023, respectively. The provision for credit losses recorded in the third quarter 2024 was $4.1 million, compared to $4.8 million and $8.0 million for the linked and prior year quarters, respectively.

Deposits - Deposits totaled $12.5 billion at September 30, 2024, an increase of $182.9 million from the linked quarter. Excluding brokered certificates of deposits, deposits increased $196.9 million. Average deposits were $12.5 billion, $12.3 billion and $11.9 billion for the current, linked and prior year quarters, respectively. At September 30, 2024, noninterest-bearing deposit accounts totaled $3.9 billion, or 31.6% of total deposits, and the loan to deposit ratio was 88.9%.

Liquidity - The total available on- and off-balance-sheet liquidity was approximately $5.8 billion at September 30, 2024. On-balance-sheet liquidity consisted of cash of $426.4 million and $1.4 billion in unpledged investment securities at September 30, 2024. Off-balance-sheet liquidity consisted of $1.2 billion available through the Federal Home Loan Bank, $2.6 billion available through the Federal Reserve and $140.0 million through correspondent bank lines. The Company also has an unused $25.0 million revolving line of credit and maintains a shelf registration allowing for the issuance of various forms of equity and debt securities.

Capital - Total shareholders’ equity was $1.8 billion and the tangible common equity to tangible assets ratio² was 9.50% at September 30, 2024, compared to 9.18% at June 30, 2024. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.5% and a total risk-based capital ratio of 13.6% at September 30, 2024. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.9% and 14.8%, respectively, at September 30, 2024.

The Company’s board of directors approved a quarterly dividend of $0.28 per common share, payable on December 31, 2024 to shareholders of record as of December 16, 2024. The board of directors also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) September 15, 2024 to (but excluding) December 15, 2024. The dividend will be payable on December 15, 2024 and will be paid on December 16, 2024 to holders of record of Series A Preferred Stock as of November 29, 2024.

___________________

¹ ROATCE, tangible common equity to tangible assets, tangible book value per share, adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

² Tangible common equity to tangible assets ratio is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

Net Interest Income and NIM

Average Balance Sheets

The following table presents, for the periods indicated, certain information related to the average interest-earning assets and interest-bearing liabilities, as well as the corresponding average interest rates earned and paid, all on a tax-equivalent basis.

	Quarter ended
	September 30, 2024						June 30, 2024						September 30, 2023
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Loans^{1, 2}	$	10,971,575	$	191,638	6.95	%	$	10,962,488	$	189,346	6.95	%	$	10,521,966	$	180,382	6.80	%
Securities²		2,503,124		21,404	3.40			2,396,519		19,956	3.35			2,302,850		18,076	3.11
Interest-earning deposits		402,932		5,348	5.28			325,452		4,389	5.42			335,771		4,509	5.33
Total interest-earning assets		13,877,631		218,390	6.26			13,684,459		213,691	6.28			13,160,587		202,967	6.12

Noninterest-earning assets		971,824						961,922						908,273

Total assets	$	14,849,455					$	14,646,381					$	14,068,860

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	3,018,309	$	20,002	2.64	%	$	2,950,827	$	18,801	2.56	%	$	2,672,084	$	13,701	2.03	%
Money market accounts		3,551,492		33,493	3.75			3,434,712		31,926	3.74			3,079,221		26,427	3.40
Savings accounts		561,466		345	0.24			573,115		335	0.24			646,187		250	0.15
Certificates of deposit		1,368,339		14,928	4.34			1,412,263		15,312	4.36			1,519,119		14,976	3.91
Total interest-bearing deposits		8,499,606		68,768	3.22			8,370,917		66,374	3.19			7,916,611		55,354	2.77
Subordinated debentures and notes		156,329		2,695	6.86			156,188		2,684	6.91			155,769		2,466	6.28
FHLB advances		4,565		59	5.14			40,308		561	5.60			10,326		141	5.42
Securities sold under agreements to repurchase		140,255		1,217	3.45			158,969		1,401	3.54			146,893		969	2.61
Other borrowings		36,226		96	1.05			36,203		95	1.06			50,571		337	2.66
Total interest-bearing liabilities		8,836,981		72,835	3.28			8,762,585		71,115	3.26			8,280,170		59,267	2.84

Noninterest-bearing liabilities:
Demand deposits		4,046,480						3,973,336						4,005,923
Other liabilities		161,625						162,220						134,162
Total liabilities		13,045,086						12,898,141						12,420,255
Shareholders' equity		1,804,369						1,748,240						1,648,605
Total liabilities and shareholders' equity	$	14,849,455					$	14,646,381					$	14,068,860

Total net interest income			$	145,555					$	142,576					$	143,700
Net interest margin					4.17	%					4.19	%					4.33	%

¹ Average balances include nonaccrual loans. Interest income includes net loan fees of $2.6 million, $2.2 million, and $3.3 million for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
² Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $2.1 million for each of the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

Net interest income of $143.5 million for the third quarter 2024 increased $2.9 million and $1.8 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $145.6 million, $142.6 million and $143.7 million for the current, linked and prior year quarters, respectively. The increase from the linked and prior quarters reflects the benefit of higher yields combined with organic growth. In late September 2024 the Federal Reserve reduced the federal funds target rate by 50 basis points. In response, since the Company maintains an asset-sensitive balance sheet, deposit pricing has been adjusted to partially mitigate the impact on income from the repricing of variable rate loans.

Interest income increased $4.7 million during the third quarter 2024 due to increases in all interest earning categories, including loans, securities and interest earning cash accounts. Interest income increased primarily due to an increase in average balances compared to the linked quarter. Continued success in deposit generation has increased liquidity, which has been primarily deployed into the securities portfolio.

The average interest rate of new loan originations in the third quarter 2024 was 7.84%, a decrease of 23 basis points from the linked quarter. Investment purchases in the third quarter 2024 had a weighted average, tax equivalent yield of 4.97%.

Interest expense increased $1.7 million in the third quarter 2024 primarily due to an increase in deposit interest expense, partially offset by a decline in interest expense on borrowings. The average cost of interest-bearing deposits was 3.22%, an increase of 3 basis points compared to the linked quarter. The total cost of deposits, including noninterest-bearing demand accounts, was 2.18% during the third quarter 2024, compared to 2.16% in the linked quarter.

NIM, on a tax equivalent basis, was 4.17% in the third quarter 2024, a decrease of 2 basis points from the linked quarter and a decrease of 16 basis points from the prior year quarter. For the month of September 2024, the loan portfolio yield was 6.90% and the cost of total deposits was 2.18%.

Investments

	At
	September 30, 2024					June 30, 2024					September 30, 2023
($ in thousands)	Carrying Value		Net Unrealized Loss			Carrying Value		Net Unrealized Loss			Carrying Value		Net Unrealized Loss
Available-for-sale (AFS)	$	1,786,793	$	(122,158	)	$	1,615,930	$	(172,734	)	$	1,487,104	$	(235,013	)
Held-to-maturity (HTM)		851,647		(46,351	)		772,648		(69,442	)		730,655		(108,780	)
Total	$	2,638,440	$	(168,509	)	$	2,388,578	$	(242,176	)	$	2,217,759	$	(343,793	)

Investment securities totaled $2.6 billion at September 30, 2024, an increase of $249.9 million from the linked quarter. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities³ was 9.26% at September 30, 2024, compared to 8.82% at June 30, 2024.

______________________

³ The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Loans

The following table presents total loans for the most recent five quarters:

	At
($ in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
C&I	$	2,145,286		$	2,107,097		$	2,263,817		$	2,186,203		$	2,020,303
CRE investor owned		2,346,575			2,308,926			2,280,990			2,291,660			2,260,220
CRE owner occupied		1,322,714			1,313,742			1,279,929			1,262,264			1,255,885
SBA loans*		1,272,679			1,269,145			1,274,780			1,281,632			1,309,497
Sponsor finance*		819,079			865,883			865,180			872,264			888,000
Life insurance premium financing*		1,030,273			996,154			1,003,597			956,162			928,486
Tax credits*		724,441			738,249			718,383			734,594			683,580
Residential real estate		346,460			339,889			354,615			359,957			364,618
Construction and land development		796,586			791,780			726,742			670,567			639,555
Other		275,799			269,142			260,459			268,815			266,676
Total loans	$	11,079,892		$	11,000,007		$	11,028,492		$	10,884,118		$	10,616,820

Quarterly loan yield		6.95	%		6.95	%		6.87	%		6.87	%		6.80	%
Variable interest rate loans to total loans		61	%		61	%		61	%		61	%		61	%

*Specialty loan category

Loans totaled $11.1 billion at September 30, 2024, an increase of $79.9 million compared to the linked quarter. During the current quarter, C&I loans and CRE loans increased $38.2 million and $46.6 million, respectively. Average line utilization was approximately 44% for the quarter ended September 30, 2024, compared to 46% and 41% for the linked and prior year quarters, respectively.

Asset Quality

The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:

	At
($ in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Nonperforming loans*	$	28,376		$	39,384		$	35,642		$	43,728		$	48,932
Other		4,516			8,746			8,466			5,736			6,933
Nonperforming assets*	$	32,892		$	48,130		$	44,108		$	49,464		$	55,865

Nonperforming loans to total loans		0.26	%		0.36	%		0.32	%		0.40	%		0.46	%
Nonperforming assets to total assets		0.22	%		0.33	%		0.30	%		0.34	%		0.40	%
Allowance for credit losses	$	139,778		$	139,464		$	135,498		$	134,771		$	142,133
Allowance for credit losses to total loans		1.26	%		1.27	%		1.23	%		1.24	%		1.34	%
Quarterly net charge-offs	$	3,850		$	605		$	5,864		$	28,479		$	6,856

*Guaranteed balances excluded	$	11,899		$	12,933		$	9,630		$	10,682		$	5,974

Nonperforming assets decreased $15.2 million and $23.0 million from the linked and prior year quarters, respectively. The decrease in nonperforming assets in the current quarter was primarily related to the sale of other real estate owned, the positive resolution on several loans, principal repayments and charge-offs in the quarter. Annualized net charge-offs totaled 14 basis points of average loans in the third quarter 2024, compared to 2 basis points in the linked quarter and 26 basis point in the prior year quarter.

The provision for credit losses totaled $4.1 million in the third quarter 2024, compared to $4.8 million and $8.0 million in the linked and prior year quarters, respectively. The provision for credit losses in the third quarter 2024 was primarily related to charge-offs and updates to qualitative factors used in the allowance calculation.

Deposits

The following table presents deposits broken out by type for the most recent five quarters:

	At
($ in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Noninterest-bearing demand accounts	$	3,934,245		$	3,928,308		$	3,805,334		$	3,958,743		$	3,852,486
Interest-bearing demand accounts		3,048,981			2,951,899			2,956,282			2,950,259			2,749,598
Money market and savings accounts		4,121,543			4,039,626			4,006,702			3,994,455			3,837,145
Brokered certificates of deposit		480,934			494,870			659,005			482,759			695,551
Other certificates of deposit		879,619			867,680			826,378			790,155			775,127
Total deposit portfolio	$	12,465,322		$	12,282,383		$	12,253,701		$	12,176,371		$	11,909,907

Noninterest-bearing deposits to total deposits		31.6	%		32.0	%		31.1	%		32.5	%		32.3	%
Quarterly cost of deposits		2.18	%		2.16	%		2.13	%		2.03	%		1.84	%

Total deposits at September 30, 2024 were $12.5 billion, an increase of $182.9 million and $555.4 million from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, total deposits increased $196.9 million and $770.0 million, from the linked and prior year quarters, respectively. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.2 billion at both September 30, 2024 and June 30, 2024.

Total estimated insured deposits,⁴ which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled $8.8 billion, or 70% of total deposits, at September 30, 2024 compared to $8.7 billion, or 71% of total deposits, at June 30, 2024.

__________________

⁴ Estimated insured deposits is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Noninterest Income

The following table presents a comparative summary of the major components of noninterest income for the periods indicated:

	Linked quarter comparison								Prior year comparison
	Quarter ended								Quarter ended
($ in thousands)	September 30, 2024		June 30, 2024		Increase (decrease)				September 30, 2023			Increase (decrease)
Deposit service charges	$	4,649	$	4,542	$	107	2	%	$	4,187		$	462		11	%
Wealth management revenue		2,599		2,590		9	—	%		2,614			(15	)	(1	)%
Card services revenue		2,573		2,497		76	3	%		2,560			13		1	%
Tax credit income (loss)		3,252		1,874		1,378	74	%		(2,673	)		5,925		222	%
Other income		8,347		3,991		4,356	109	%		5,397			2,950		55	%
Total noninterest income	$	21,420	$	15,494	$	5,926	38	%	$	12,085		$	9,335		77	%

Total noninterest income was $21.4 million for the third quarter 2024, an increase of $5.9 million and $9.3 million from the linked and prior year quarter, respectively. The increase from the linked and prior year quarters was primarily due to an increase in tax credit income from a positive change in credits carried at fair value, and a net gain on the sale of other real estate that is included in Other income. Tax credit income varies based on transaction volumes and fair value changes on credits carried at fair value.

The following table presents a comparative summary of the major components of other income for the periods indicated:

	Linked quarter comparison									Prior year comparison
	Quarter ended									Quarter ended
($ in thousands)	September 30, 2024		June 30, 2024		Increase (decrease)					September 30, 2023		Increase (decrease)
Gain on sales of other real estate owned	$	3,159	$	—	$	3,159		100	%	$	—	$	3,159		100	%
BOLI		1,123		855		268		31	%		822		301		37	%
Community development investments		1,177		381		796		209	%		338		839		248	%
Private equity fund distributions		614		411		203		49	%		181		433		239	%
Servicing fees		539		594		(55	)	(9	)%		701		(162	)	(23	)%
Swap fees		17		217		(200	)	(92	)%		54		(37	)	(69	)%
Gain on SBA loan sales		—		—		—		—	%		1,514		(1,514	)	(100	)%
Miscellaneous income		1,718		1,533		185		12	%		1,787		(69	)	(4	)%
Total other income	$	8,347	$	3,991	$	4,356		109	%	$	5,397	$	2,950		55	%

The increase in other income from the linked and prior year quarters was primarily driven by a $3.2 million net gain on the sale of other real estate in the third quarter 2024 and higher community development income. Community development income and private equity fund distributions are not consistent sources of income and fluctuate based on distributions from the underlying funds. The increase from the prior year quarter was partially offset by a decline in the gain on SBA loan sales that were transacted in the prior year.

Noninterest Expense

The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:

	Linked quarter comparison								Prior year comparison
	Quarter ended								Quarter ended
($ in thousands)	September 30, 2024		June 30, 2024		Increase (decrease)				September 30, 2023		Increase (decrease)
Employee compensation and benefits	$	45,359	$	44,524	$	835	2	%	$	40,771	$	4,588	11	%
Deposit costs		23,781		21,706		2,075	10	%		20,987		2,794	13	%
Occupancy		4,372		4,197		175	4	%		4,198		174	4	%
Core conversion expense		1,375		1,250		125	10	%		—		1,375	100	%
Other expense		23,120		22,340		780	3	%		22,688		432	2	%
Total noninterest expense	$	98,007	$	94,017	$	3,990	4	%	$	88,644	$	9,363	11	%

Employee compensation and benefits increased $0.8 million from the linked quarter primarily due to an increase in the number of work days in the quarter and the success in recruiting new relationship bankers. Deposit costs relate to certain specialized deposit businesses that receive an earnings credit allowance for deposit related expenses that are impacted by interest rates and average balances. Deposit costs increased $2.1 million from the linked quarter primarily due to an increase of $151.6 million in average deposit vertical balances from the linked quarter. Expenses related to the core system conversion for the current and linked quarters were $1.4 million and $1.3 million, respectively, due to the continued progress on the project, which is expected to be completed during the fourth quarter 2024.

The increase in noninterest expense of $9.4 million from the prior year quarter was primarily due to an increase in the associate base, merit increases throughout 2023 and 2024, an increase in variable deposit costs due to higher earnings credit rates and average balances, and additional expenses incurred related to the core system conversion.

For the third quarter 2024, the core efficiency ratio⁵ was 58.4%, compared to 58.1% for the linked quarter and 56.2% for the prior year quarter.

___________________

⁵ Core efficiency ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Income Taxes

The effective tax rate was 19.4%, compared to 20.5% and 21.7% in the linked and prior year quarters, respectively. The decrease in the effective tax rate from the linked and prior year quarters was driven by tax credit opportunities the Company has deployed as part of its tax planning strategy.

Capital

The following table presents total equity and various capital ratios for the most recent five quarters:

	At
($ in thousands)	September 30, 2024*			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Shareholders’ equity	$	1,832,011		$	1,755,273		$	1,731,725		$	1,716,068		$	1,611,880
Total risk-based capital to risk-weighted assets		14.8	%		14.6	%		14.3	%		14.2	%		14.1	%
Tier 1 capital to risk weighted assets		13.2	%		13.0	%		12.8	%		12.7	%		12.6	%
Common equity tier 1 capital to risk-weighted assets		11.9	%		11.7	%		11.4	%		11.3	%		11.2	%
Leverage ratio		11.2	%		11.1	%		11.0	%		11.0	%		10.9	%
Tangible common equity to tangible assets		9.50	%		9.18	%		9.01	%		8.96	%		8.51	%

*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Total equity was $1.8 billion at September 30, 2024, an increase of $76.7 million from the linked quarter. Tangible common book value per share was $37.26 at September 30, 2024, compared to $35.02 and $31.06 at June 30, 2024 and September 30, 2023, respectively.

The Company’s regulatory capital ratios continue to exceed the “well-capitalized” regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

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 additional financial measures, such as tangible common equity, PPNR, ROATCE, core efficiency ratio, the tangible common equity to tangible assets ratio, tangible book value per common share, estimated insured deposits and adjusted diluted earnings per share, in this release that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

The Company considers its tangible common equity, PPNR, ROATCE, core efficiency ratio, the tangible common equity to tangible assets ratio, tangible book value per common share, estimated insured deposits and adjusted diluted earnings per share, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as the FDIC special assessment, core conversion expenses, merger-related expenses, facilities charges, and the gain or loss on the sale of other real estate owned and investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity to tangible assets ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.

The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.

Conference Call and Webcast Information

The Company will host a conference call and webcast at 10:00 a.m. Central Time on Tuesday, October 22, 2024. During the call, management will review the third quarter 2024 results and related matters. This press release as well as a related slide presentation will be accessible on the Company’s website at www.enterprisebank.com under “Investor Relations” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-800-715-9871. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC3Q2024EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.

About Enterprise Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $15.0 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.

Enterprise Financial Services Corp’s common stock is traded on the Nasdaq Stock Market under the symbol “EFSC.” Please visit our website at www.enterprisebank.com to see our regularly posted material information.

Forward-looking Statements

Readers should note that, in addition to the historical information contained herein, this press release 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. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, shareholder value creation and the impact of acquisitions.

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma”, “pipeline” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, as well as credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), U.S. fiscal debt, budget and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase out of LIBOR, natural disasters, terrorist activities, war and geopolitical matters (including the war in Israel and potential for a broader regional conflict and the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

For any forward-looking statements made in this press release or in any documents, EFSC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, EFSC disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited)

	Quarter ended															Nine months ended
(in thousands, except per share data)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
EARNINGS SUMMARY
Net interest income	$	143,469		$	140,529		$	137,728		$	140,732		$	141,639		$	421,726		$	421,860
Provision for credit losses		4,099			4,819			5,756			18,053			8,030			14,674			18,552
Noninterest income		21,420			15,494			12,158			25,452			12,085			49,072			43,273
Noninterest expense		98,007			94,017			93,501			92,603			88,644			285,525			255,583
Income before income tax expense		62,783			57,187			50,629			55,528			57,050			170,599			190,998
Income tax expense		12,198			11,741			10,228			10,999			12,385			34,167			41,468
Net income		50,585			45,446			40,401			44,529			44,665			136,432			149,530
Preferred stock dividends		938			937			938			937			938			2,813			2,813
Net income available to common shareholders	$	49,647		$	44,509		$	39,463		$	43,592		$	43,727		$	133,619		$	146,717

Diluted earnings per common share	$	1.32		$	1.19		$	1.05		$	1.16		$	1.17		$	3.56		$	3.91
Adjusted diluted earnings per common share¹	$	1.29		$	1.21		$	1.07		$	1.20		$	1.17		$	3.57		$	3.90
Return on average assets		1.36	%		1.25	%		1.12	%		1.23	%		1.26	%		1.24	%		1.47	%
Adjusted return on average assets¹		1.32	%		1.27	%		1.14	%		1.28	%		1.26	%		1.24	%		1.46	%
Return on average common equity¹		11.40	%		10.68	%		9.52	%		10.94	%		11.00	%		10.55	%		12.73	%
Adjusted return on average common equity¹		11.09	%		10.90	%		9.70	%		11.35	%		11.00	%		10.58	%		12.69	%
ROATCE¹		14.55	%		13.77	%		12.31	%		14.38	%		14.49	%		13.56	%		16.90	%
Adjusted ROATCE¹		14.16	%		14.06	%		12.53	%		14.92	%		14.49	%		13.60	%		16.85	%
Net interest margin (tax equivalent)		4.17	%		4.19	%		4.13	%		4.23	%		4.33	%		4.17	%		4.50	%
Efficiency ratio		59.44	%		60.26	%		62.38	%		55.72	%		57.66	%		60.65	%		54.95	%
Core efficiency ratio¹		58.42	%		58.09	%		60.21	%		53.06	%		56.18	%		58.89	%		53.55	%

Assets	$	14,954,125		$	14,615,666		$	14,613,338		$	14,518,590		$	14,025,042
Average assets	$	14,849,455		$	14,646,381		$	14,556,119		$	14,332,804		$	14,068,860		$	14,684,589		$	13,627,448
Period end common shares outstanding		37,184			37,344			37,515			37,416			37,385
Dividends per common share	$	0.27		$	0.26		$	0.25		$	0.25		$	0.25		$	0.78		$	0.75
Tangible book value per common share¹	$	37.26		$	35.02		$	34.21		$	33.85		$	31.06
Tangible common equity to tangible assets¹		9.50	%		9.18	%		9.01	%		8.96	%		8.51	%
Total risk-based capital to risk-weighted assets²		14.8	%		14.6	%		14.3	%		14.2	%		14.1	%

¹Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.
²Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	Quarter ended												Nine months ended
(in thousands, except per share data)	Sep 30, 2024		Jun 30, 2024		Mar 31, 2024			Dec 31, 2023		Sep 30, 2023			Sep 30, 2024		Sep 30, 2023
INCOME STATEMENTS
NET INTEREST INCOME
Interest income	$	216,304	$	211,644	$	207,723		$	207,083	$	200,906		$	635,671	$	557,836
Interest expense		72,835		71,115		69,995			66,351		59,267			213,945		135,976
Net interest income		143,469		140,529		137,728			140,732		141,639			421,726		421,860
Provision for credit losses		4,099		4,819		5,756			18,053		8,030			14,674		18,552
Net interest income after provision for credit losses		139,370		135,710		131,972			122,679		133,609			407,052		403,308

NONINTEREST INCOME
Deposit service charges		4,649		4,542		4,423			4,334		4,187			13,614		12,225
Wealth management revenue		2,599		2,590		2,544			2,428		2,614			7,733		7,602
Card services revenue		2,573		2,497		2,412			2,666		2,560			7,482		7,362
Tax credit income (loss)		3,252		1,874		(2,190	)		9,688		(2,673	)		2,936		(492	)
Other income		8,347		3,991		4,969			6,336		5,397			17,307		16,576
Total noninterest income		21,420		15,494		12,158			25,452		12,085			49,072		43,273

NONINTEREST EXPENSE
Employee compensation and benefits		45,359		44,524		45,262			39,651		40,771			135,145		124,915
Deposit costs		23,781		21,706		20,277			21,606		20,987			65,764		50,688
Occupancy		4,372		4,197		4,326			4,313		4,198			12,895		12,213
FDIC special assessment		—		—		625			2,412		—			625		—
Core conversion expense		1,375		1,250		350			—		—			2,975		—
Other expense		23,120		22,340		22,661			24,621		22,688			68,121		67,767
Total noninterest expense		98,007		94,017		93,501			92,603		88,644			285,525		255,583

Income before income tax expense		62,783		57,187		50,629			55,528		57,050			170,599		190,998
Income tax expense		12,198		11,741		10,228			10,999		12,385			34,167		41,468
Net income	$	50,585	$	45,446	$	40,401		$	44,529	$	44,665		$	136,432	$	149,530
Preferred stock dividends		938		937		938			937		938			2,813		2,813
Net income available to common shareholders	$	49,647	$	44,509	$	39,463		$	43,592	$	43,727		$	133,619	$	146,717

Basic earnings per common share	$	1.33	$	1.19	$	1.05		$	1.16	$	1.17		$	3.57	$	3.93
Diluted earnings per common share	$	1.32	$	1.19	$	1.05		$	1.16	$	1.17		$	3.56	$	3.91

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	At
($ in thousands)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
BALANCE SHEET

ASSETS
Cash and due from banks	$	210,984		$	176,698		$	157,697		$	193,275		$	190,806
Interest-earning deposits		218,919			219,342			215,951			243,610			184,245
Debt and equity investments		2,714,194			2,460,549			2,443,977			2,434,902			2,279,578
Loans held for sale		304			606			610			359			212

Loans		11,079,892			11,000,007			11,028,492			10,884,118			10,616,820
Allowance for credit losses		(139,778	)		(139,464	)		(135,498	)		(134,771	)		(142,133	)
Total loans, net		10,940,114			10,860,543			10,892,994			10,749,347			10,474,687

Fixed assets, net		44,368			44,831			44,382			42,681			41,268
Goodwill		365,164			365,164			365,164			365,164			365,164
Intangible assets, net		9,400			10,327			11,271			12,318			13,425
Other assets		450,678			477,606			481,292			476,934			475,657
Total assets	$	14,954,125		$	14,615,666		$	14,613,338		$	14,518,590		$	14,025,042

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	3,934,245		$	3,928,308		$	3,805,334		$	3,958,743		$	3,852,486
Interest-bearing deposits		8,531,077			8,354,075			8,448,367			8,217,628			8,057,421
Total deposits		12,465,322			12,282,383			12,253,701			12,176,371			11,909,907
Subordinated debentures and notes		156,407			156,265			156,124			155,984			155,844
FHLB advances		150,000			78,000			125,000			—			—
Other borrowings		170,815			178,269			195,246			297,829			182,372
Other liabilities		179,570			165,476			151,542			172,338			165,039
Total liabilities		13,122,114			12,860,393			12,881,613			12,802,522			12,413,162
Shareholders’ equity:
Preferred stock		71,988			71,988			71,988			71,988			71,988
Common stock		372			373			375			374			374
Additional paid-in capital		992,642			994,116			995,969			995,208			992,044
Retained earnings		845,844			810,935			778,784			749,513			715,303
Accumulated other comprehensive loss		(78,835	)		(122,139	)		(115,391	)		(101,015	)		(167,829	)
Total shareholders’ equity		1,832,011			1,755,273			1,731,725			1,716,068			1,611,880
Total liabilities and shareholders’ equity	$	14,954,125		$	14,615,666		$	14,613,338		$	14,518,590		$	14,025,042

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	Nine months ended
	September 30, 2024					September 30, 2023
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate	Average Balance		Interest Income/ Expense		Average Yield/ Rate
AVERAGE BALANCE SHEET

ASSETS
Interest-earning assets:
Loans^{1, 2}	$	10,954,063	$	567,687	6.92%	$	10,203,291	$	503,458	6.60%
Securities²		2,433,659		60,851	3.34		2,296,485		52,743	3.07
Interest-earning deposits		332,409		13,306	5.35		206,110		7,799	5.06
Total interest-earning assets		13,720,131		641,844	6.25		12,705,886		564,000	5.93

Noninterest-earning assets		964,458					921,562

Total assets	$	14,684,589				$	13,627,448

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing demand accounts	$	2,964,667	$	57,415	2.59%	$	2,462,988	$	29,728	1.61%
Money market accounts		3,462,993		96,777	3.73		2,942,970		62,397	2.83
Savings accounts		573,853		983	0.23		688,157		707	0.14
Certificates of deposit		1,374,176		44,441	4.32		1,139,489		28,555	3.35
Total interest-bearing deposits		8,375,689		199,616	3.18		7,233,604		121,387	2.24
Subordinated debentures and notes		156,188		7,863	6.72		155,633		7,306	6.28
FHLB advances		39,427		1,649	5.59		73,020		2,752	5.04
Securities sold under agreements to repurchase		167,939		4,422	3.52		174,783		2,422	1.85
Other borrowings		38,381		395	1.37		79,396		2,109	3.55
Total interest-bearing liabilities		8,777,624		213,945	3.26		7,716,436		135,976	2.36

Noninterest-bearing liabilities:
Demand deposits		3,982,015					4,178,038
Other liabilities		161,033					119,883
Total liabilities		12,920,672					12,014,357
Shareholders' equity		1,763,917					1,613,091
Total liabilities and shareholders' equity	$	14,684,589				$	13,627,448

Total net interest income			$	427,899				$	428,024
Net interest margin					4.17%					4.50%

¹ Average balances include nonaccrual loans. Interest income includes net loan fees of $7.2 million and $10.7 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.
² Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $6.2 million for both the nine months ended September 30, 2024 and September 30, 2023, respectively.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	At or for the quarter ended
($ in thousands)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
LOAN PORTFOLIO
Commercial and industrial	$	4,628,488		$	4,619,448		$	4,766,310		$	4,672,559		$	4,448,535
Commercial real estate		4,915,176			4,856,751			4,804,803			4,803,571			4,794,355
Construction real estate		896,325			893,672			820,416			760,425			723,796
Residential real estate		355,279			351,934			367,218			372,188			376,120
Other		284,624			278,202			269,745			275,375			274,014
Total loans	$	11,079,892		$	11,000,007		$	11,028,492		$	10,884,118		$	10,616,820

DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts	$	3,934,245		$	3,928,308		$	3,805,334		$	3,958,743		$	3,852,486
Interest-bearing demand accounts		3,048,981			2,951,899			2,956,282			2,950,259			2,749,598
Money market and savings accounts		4,121,543			4,039,626			4,006,702			3,994,455			3,837,145
Brokered certificates of deposit		480,934			494,870			659,005			482,759			695,551
Other certificates of deposit		879,619			867,680			826,378			790,155			775,127
Total deposits	$	12,465,322		$	12,282,383		$	12,253,701		$	12,176,371		$	11,909,907

AVERAGE BALANCES
Loans	$	10,971,575		$	10,962,488		$	10,927,932		$	10,685,961		$	10,521,966
Securities		2,503,124			2,396,519			2,400,571			2,276,915			2,302,850
Interest-earning assets		13,877,631			13,684,459			13,596,571			13,383,638			13,160,587
Assets		14,849,455			14,646,381			14,556,119			14,332,804			14,068,860
Deposits		12,546,086			12,344,253			12,180,703			12,163,346			11,922,534
Shareholders’ equity		1,804,369			1,748,240			1,738,698			1,652,882			1,648,605
Tangible common equity¹		1,357,362			1,300,305			1,289,776			1,202,872			1,197,486

YIELDS (tax equivalent)
Loans		6.95	%		6.95	%		6.87	%		6.87	%		6.80	%
Securities		3.40			3.35			3.27			3.20			3.11
Interest-earning assets		6.26			6.28			6.20			6.20			6.12
Interest-bearing deposits		3.22			3.19			3.14			3.03			2.77
Deposits		2.18			2.16			2.13			2.03			1.84
Subordinated debentures and notes		6.86			6.91			6.40			6.30			6.28
FHLB advances and other borrowed funds		3.01			3.52			3.80			3.06			2.76
Interest-bearing liabilities		3.28			3.26			3.22			3.09			2.84
Net interest margin		4.17			4.19			4.13			4.23			4.33
¹Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	Quarter ended
(in thousands, except per share data)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
ASSET QUALITY
Net charge-offs	$	3,850		$	605		$	5,864		$	28,479		$	6,856
Nonperforming loans		28,376			39,384			35,642			43,728			48,932
Classified assets		179,883			169,822			185,150			185,389			184,393
Nonperforming loans to total loans		0.26	%		0.36	%		0.32	%		0.40	%		0.46	%
Nonperforming assets to total assets		0.22	%		0.33	%		0.30	%		0.34	%		0.40	%
Allowance for credit losses to total loans		1.26	%		1.27	%		1.23	%		1.24	%		1.34	%
Allowance for credit losses to total loans, excluding guaranteed loans		1.38	%		1.38	%		1.34	%		1.35	%		1.47	%
Allowance for credit losses to nonperforming loans		492.6	%		354.1	%		380.2	%		308.2	%		290.5	%
Net charge-offs to average loans -annualized		0.14	%		0.02	%		0.22	%		1.06	%		0.26	%

WEALTH MANAGEMENT
Trust assets under management	$	2,499,807		$	2,367,409		$	2,352,902		$	2,235,073		$	2,129,408

SHARE DATA
Book value per common share	$	47.33		$	45.08		$	44.24		$	43.94		$	41.19
Tangible book value per common share¹	$	37.26		$	35.02		$	34.21		$	33.85		$	31.06
Market value per share	$	51.26		$	40.91		$	40.56		$	44.65		$	37.50
Period end common shares outstanding		37,184			37,344			37,515			37,416			37,385
Average basic common shares		37,337			37,485			37,490			37,421			37,405
Average diluted common shares		37,483			37,540			37,597			37,554			37,520

CAPITAL
Total risk-based capital to risk-weighted assets²		14.8	%		14.6	%		14.3	%		14.2	%		14.1	%
Tier 1 capital to risk-weighted assets²		13.2	%		13.0	%		12.8	%		12.7	%		12.6	%
Common equity tier 1 capital to risk-weighted assets²		11.9	%		11.7	%		11.4	%		11.3	%		11.2	%
Tangible common equity to tangible assets¹		9.50	%		9.18	%		9.01	%		8.96	%		8.51	%

¹Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.
²Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

	Quarter ended															Nine months ended
($ in thousands)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
CORE EFFICIENCY RATIO
Net interest income (GAAP)	$	143,469		$	140,529		$	137,728		$	140,732		$	141,639		$	421,726		$	421,860
Tax-equivalent adjustment		2,086			2,047			2,040			1,915			2,061			6,173			6,164
Noninterest income (GAAP)		21,420			15,494			12,158			25,452			12,085			49,072			43,273
Less gain on sale of investment securities		—			—			—			220			—			—			381
Less gain (loss) on sale of other real estate owned		3,159			—			(2	)		—			—			3,157			187
Core revenue (non-GAAP)		163,816			158,070			151,928			167,879			155,785			473,814			470,729

Noninterest expense (GAAP)		98,007			94,017			93,501			92,603			88,644			285,525			255,583
Less FDIC special assessment		—			—			625			2,412			—			625			—
Less core conversion expense		1,375			1,250			350			—			—			2,975			—
Less amortization on intangibles		927			944			1,047			1,108			1,118			2,918			3,493
Core noninterest expense (non-GAAP)	$	95,705		$	91,823		$	91,479		$	89,083		$	87,526		$	279,007		$	252,090

Core efficiency ratio (non-GAAP)		58.42	%		58.09	%		60.21	%		53.06	%		56.18	%		58.89	%		53.55	%

	Quarter ended
(in thousands, except per share data)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Shareholders’ equity (GAAP)	$	1,832,011		$	1,755,273		$	1,731,725		$	1,716,068		$	1,611,880
Less preferred stock		71,988			71,988			71,988			71,988			71,988
Less goodwill		365,164			365,164			365,164			365,164			365,164
Less intangible assets		9,400			10,327			11,271			12,318			13,425
Tangible common equity (non-GAAP)	$	1,385,459		$	1,307,794		$	1,283,302		$	1,266,598		$	1,161,303
Less net unrealized losses on HTM securities, after tax		34,856			52,220			47,822			41,038			81,367
Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP)	$	1,350,603		$	1,255,574		$	1,235,480		$	1,225,560		$	1,079,936

Common shares outstanding		37,184			37,344			37,515			37,416			37,385
Tangible book value per share (non-GAAP)	$	37.26		$	35.02		$	34.21		$	33.85		$	31.06

Total assets (GAAP)	$	14,954,125		$	14,615,666		$	14,613,338		$	14,518,590		$	14,025,042
Less goodwill		365,164			365,164			365,164			365,164			365,164
Less intangible assets		9,400			10,327			11,271			12,318			13,425
Tangible assets (non-GAAP)	$	14,579,561		$	14,240,175		$	14,236,903		$	14,141,108		$	13,646,453

Tangible common equity to tangible assets (non-GAAP)		9.50	%		9.18	%		9.01	%		8.96	%		8.51	%
Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP)		9.26	%		8.82	%		8.68	%		8.67	%		7.91	%

	Quarter Ended															Nine months ended
($ in thousands)	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED EARNINGS PER SHARE
Average shareholder’s equity (GAAP)	$	1,804,369		$	1,748,240		$	1,738,698		$	1,652,882		$	1,648,605		$	1,763,917		$	1,613,091
Less average preferred stock		71,988			71,988			71,988			71,988			71,988			71,988			71,988
Less average goodwill		365,164			365,164			365,164			365,164			365,164			365,164			365,164
Less average intangible assets		9,855			10,783			11,770			12,858			13,967			10,799			15,094
Average tangible common equity (non-GAAP)	$	1,357,362		$	1,300,305		$	1,289,776		$	1,202,872		$	1,197,486		$	1,315,966		$	1,160,845

Net income (GAAP)	$	50,585		$	45,446		$	40,401		$	44,529		$	44,665		$	136,432		$	149,530
FDIC special assessment (after tax)		—			—			470			1,814			—			470			—
Core conversion expense (after tax)		1,034			940			263			—			—			2,237			—
Less gain on sale of investment securities (after tax)		—			—			—			165			—			—			287
Less gain (loss) on sales of other real estate owned (after tax)		2,375			—			(1	)		—			—			2,374			141
Net income adjusted (non-GAAP)	$	49,244		$	46,386		$	41,135		$	46,178		$	44,665		$	136,765		$	149,102
Less preferred stock dividends		938			937			938			937			938			2,813			2,813
Net income available to common shareholders adjusted (non-GAAP)	$	48,306		$	45,449		$	40,197		$	45,241		$	43,727		$	133,952		$	146,289

Return on average common equity (non-GAAP)		11.40	%		10.68	%		9.52	%		10.94	%		11.00	%		10.55	%		12.73	%
Adjusted return on average common equity (non-GAAP)		11.09	%		10.90	%		9.70	%		11.35	%		11.00	%		10.58	%		12.69	%
ROATCE (non-GAAP)		14.55	%		13.77	%		12.31	%		14.38	%		14.49	%		13.56	%		16.90	%
Adjusted ROATCE (non-GAAP)		14.16	%		14.06	%		12.53	%		14.92	%		14.49	%		13.60	%		16.85	%

Average assets	$	14,849,455		$	14,646,381		$	14,556,119		$	14,332,804		$	14,068,860		$	14,684,589		$	13,627,448
Return on average assets (GAAP)		1.36	%		1.25	%		1.12	%		1.23	%		1.26	%		1.24	%		1.47	%
Adjusted return on average assets (non-GAAP)		1.32	%		1.27	%		1.14	%		1.28	%		1.26	%		1.24	%		1.46	%
Average diluted common shares		37,483			37,540			37,597			37,554			37,520			37,547			37,493
Diluted earnings per share (GAAP)	$	1.32		$	1.19		$	1.05		$	1.16		$	1.17		$	3.56		$	3.91
Adjusted diluted earnings per share (non-GAAP)	$	1.29		$	1.21		$	1.07		$	1.20		$	1.17		$	3.57		$	3.90

	Quarter ended
($ in thousands)	Sep 30, 2024		Jun 30, 2024		Mar 31, 2024			Dec 31, 2023		Sep 30, 2023
CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)
Net interest income	$	143,469	$	140,529	$	137,728		$	140,732	$	141,639
Noninterest income		21,420		15,494		12,158			25,452		12,085
FDIC special assessment		—		—		625			2,412		—
Core conversion expense		1,375		1,250		350			—		—
Less gain on sale of investment securities		—		—		—			220		—
Less gain (loss) on sales of other real estate owned		3,159		—		(2	)		—		—
Less noninterest expense		98,007		94,017		93,501			92,603		88,644
PPNR (non-GAAP)	$	65,098	$	63,256	$	57,362		$	75,773	$	65,080

	Quarter ended
($ in thousands)	Sep 30, 2024			Jun 30, 2024
CALCULATION OF ESTIMATED INSURED DEPOSITS
Estimated uninsured deposits per Call Report	$	4,180,066		$	4,020,979
Collateralized/affiliate deposits		(463,103	)		(454,084	)
Accrued interest on deposits		(5,830	)		(5,632	)
Adjusted uninsured/uncollateralized deposits		3,711,133			3,561,263
Estimated insured/collateralized deposits		8,754,189			8,721,120
Total deposits	$	12,465,322		$	12,282,383

View source version on businesswire.com: https://www.businesswire.com/news/home/20241021002081/en/

Investor Relations: Keene Turner, Senior Executive Vice President and CFO (314) 512-7233

Media: Steve Richardson, Senior Vice President, Corporate Communications (314) 995-5695

Source: Enterprise Financial Services Corp

Enterprise Financial Reports Third Quarter 2024 Results

NASDAQ:EFSC

EFSC Rankings

EFSC Latest News

EFSC Stock Data

Trending News

Enterprise Financial Reports Third Quarter 2024 Results

NASDAQ:EFSC

EFSC Rankings

EFSC Latest News

EFSC Stock Data