Enterprise Financial Services Corporation · NASDAQ:EFSC
Enterprise Financial Services — Q1 2017 Earnings Presentation
20 slides from Enterprise Financial Services's earnings presentation, Apr 24, 2017
Slide 1: Enterprise Financial Services Corp 2017 First Quarter Earnings Release
Enterprise Financial Services Corp 2017 FIRST QUARTER EARNINGS RELEASE
Slide 2: Forward-looking statements
2 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 of terms such as “may,”
Slide 3: 2017 Focus
3 SUSTAIN CORE GROWTH TRENDS SUCCESSFULLY CONVERT AND INTEGRATE JEFFERSON COUNTY BANCSHARES (“JCB”) MAINTAIN FOCUS ON LONG-TERM STRATEGIC DEVELOPMENT 2017 FOCUS
Slide 4: Financial Scorecard
4 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 SCORECARD 26% 27%
Slide 5: Portfolio Loan Trends
5 PORTFOLIO LOAN TRENDS $2,833 $2,884 $3,038 $3,118 $3,853 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 In Millions *Note: 12% excluding acquisition of JCB JCB $678
Slide 6: Commercial & Industrial Loan Trends
6 $1,545 $1,541 $1,599 $1,633 $1,774 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 COMMERCIAL & INDUSTRIAL LOAN TRENDS In Millions JCB $79
Slide 7: Portfolio Loan Details
7 PORTFOLIO LOAN DETAILS Q1 ‟17 Q4 „16 QTR CHANGE JCB Q1 „16 LTM CHANGE ENTERPRISE VALUE LENDING $ 430 $ 389 $ 41 - $ 360 $ 70 C&I GENERAL 890 794 96 79 760 130 LIFE INSURANCE PREMIUM FINANCING 312 306 6 - 272 40 TAX CREDIT 142 144 (2) - 153 (11) COMMERCIAL REAL ESTATE 1,541 1,089 452 466 949 592 RE
Slide 8: Portfolio Loans by Business Unit
8 PORTFOLIO LOANS BY BUSINESS UNIT $1,427 $1,556 $2,210 $700 $900 $1,100 $1,300 $1,500 $1,700 $1,900 $2,100 $2,300 Q1 '16 Q4 '16 Q1 '17 St. Louis $532 $591 $614 0 200 400 600 800 1000 1200 1400 Q1 '16 Q4 '16 Q1 '17 $188 $226 $236 0 500 1000 1500 Q1 '16 Q4 '16 Q1 '17 Arizona In Millions Kansas City $
Slide 9: Deposit Trends
9 DEPOSIT TRENDS $2,932 $3,028 $3,125 $3,233 $4,032 24.5% 24.9% 24.4% 26.8% 25.7% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 800 1,300 1,800 2,300 2,800 3,300 3,800 4,300 Deposits DDA % Last Twelve Months Growth Rate = 38%, 11% Excluding Acquisition of JCB In Millions J
Slide 10: Earnings Per Share
10 EARNINGS PER SHARE $0.56 <$0.03> $0.06 $0.59 EPS Non-Core Acquired Assets Merger Related Expenses Core EPS * A Non GAAP Measure, Refer to Appendix for Reconciliation REPORTED VS. CORE EPS* Q1 2017
Slide 11: Earnings Per Share Trend
11 EARNINGS PER SHARE TREND $0.59 $0.03 < $0.02> < $0.05> < $0.03> $0.01 $0.06 $0.59 Q4 '16 Net Interest Income Portfolio Loan Loss Provision Non Interest Income Non Interest Expense JCB Acquisition Income Tax Item Q1 '17 CHANGES IN CORE EPS* Note: * A Non GAAP Measure, Refer to Appendix for Reconci
Slide 12: Core Net Interest Income Trend
12 CORE NET INTEREST INCOME TREND* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $29.6 $30.2 $31.5 $32.2 $37.6 3.54% 3.52% 3.54% 3.44% 3.63% -6.00% -4.00% -2.00% 0.00% 2.00% 4.00% $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 $11.0 $12.0 $13.0 $14.0 $15.0 $16.0 $17.0 $18.0 $19.0
Slide 13: Credit Trends for Portfolio Loans
13 CREDIT TRENDS FOR PORTFOLIO LOANS -1 bps -6 bps 14 bps 12 bps -1 bps Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Net Charge-offs (1) Q1 2017 EFSC PEER(2) NPA’S/ASSETS = 0.33% 0.66% NPL’S/LOANS = 0.36% 0.77% ALLL/NPL’S = 283% 112% ALLL/LOANS (4) = 1.02% 1.04% (1) Portfolio loans only, excludes non-core acq
Slide 14: Core Fee Income
14 CORE FEE INCOME* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation Other Core Fee Income Detail Core Fee Income $1.7 $1.6 $1.7 $1.7 $1.8 $2.0 $2.2 $2.2 $2.2 $2.5 $1.8 $2.1 $2.7 $2.2 $2.5 $0.5 $0.2 $0.2 $1.7 $0.2 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Wealth Management Deposit Service C
Slide 15: Operating Expenses Trend
15 OPERATING EXPENSES TREND* In Millions Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation $6.1 $6.5 $6.4 $7.0 $7.0 $1.7 $1.6 $1.7 $1.7 $1.9 $12.6 $12.3 $12.1 $12.4 $16.0 57.4% 56.3% 52.8% 52.7% 56.0% -2 3 8 13 18 23 28 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Other Occupancy Employee compe
Slide 16: Positive Momentum in Core Earnings Per Share
16 POSITIVE MOMENTUM IN CORE* EARNINGS PER SHARE $0.28 $0.31 $0.37 $0.33 $0.35 $0.38 $0.44 $0.49 $0.47 $0.49 $0.49 $0.59 $0.59 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 111% Core EPS Gro
Slide 17: Appendix
Appendix
Slide 18: Use of Non-GAAP Financial Measures
18 USE OF NON-GAAP FINANCIAL MEASURES The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net inter
Slide 19: Reconciliation of Non-GAAP Financial Measures
19 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (in thousands, except per share data) 2017 2016 2016 2016 2016 CORE PERFORMANCE MEASURES Net interest income 38,642$ 35,454$ 33,830$ 33,783$ 32,428$ Less: Incremental accretion income 1,075 3,279 2,296 3,571 2,8
Slide 20: Q & A First Quarter 2017 Earnings Webcast
20 Q & A FIRST QUARTER 2017 EARNINGS WEBCAST
Enterprise Financial Services — Q1 2017 Earnings Presentation on 6ix