ENTERPRISE FINANCIAL SERVICES CORP Exhibit 99.1
Enterprise Financial Services Corp
2023 Third Quarter Investor Presentation
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 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" 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, including the First Choice acquisition, 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, or health emergencies, and their effects on economic and business environments in which we operate, including the ongoing disruption to the financial market and other economic activity; and other 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, 2022, 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.
Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only, are not forecasts and may not reflect actual results.
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.
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Enterprise Financial Services Corp
Guiding People to a Lifetime of Financial Success
Vision
Target
Market
Company Highlights
To be a company where our associates are proud to work, that delivers ease of navigation to our customers and value to our investors, while helping our communities flourish.
Privately held businesses, business owners and professionals in vibrant and high growth markets of Arizona, California, Kansas, Missouri, Nevada and New Mexico.
• | EFSC incorporated in 1996 | • Nasdaq listed: | |
• | Enterprise Bank & Trust chartered | ◦ | Common stock trading symbol EFSC |
as a Missouri trust company | ◦ | Depositary shares trading symbol EFSCP |
- 1,100+ associates
In Billions
$13.5 | $13.1 | |||||
$9.8 | $2.2 | |||||
Growth | $11.3 | |||||
$7.3 | $1.3 | |||||
History | $5.3 | $5.6 | $1.2 | $8.5 | ||
$0.9 | $6.1 | |||||
$4.4 | ||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
EFSC Assets | Merger Contribution |
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Key Metrics
Profitability
Balance Sheet
Credit
Profitability
Balance Sheet
Credit
Profitability
Balance Sheet
Credit
Peer Banks $10-50B | ||||
Median | Top Quartile | |||
3Q23 YTD | FY2022 | |||
Return on average assets | 1.47 % | 1.52 % | 1.15 % | 1.32 % |
Return on average tangible common equity(1) | 16.90 % | 19.10 % | 15.58 % | 17.87 % |
Net interest margin | 4.50 % | 3.89 % | 3.29 % | 3.46 % |
Efficiency ratio(2) | 53.55 % | 49.77 % | 53.49 % | 48.98 % |
Tangible common equity/tangible assets(1) | 8.51 % | 8.43 % | 7.40 % | 8.54 % |
Loan/deposit ratio | 89.14 % | 89.92 % | 83.07 % | 92.18 % |
Nonperforming assets/assets | 0.40 % | 0.08 % | 0.25 % | 0.17 % |
Allowance for credit losses/loans | 1.34 % | 1.41 % | 1.09 % | 1.29 % |
FY2021 | ||||
Return on average assets(1) | 1.50 % | 1.28 % | 1.49 % | |
Return on average tangible common equity(1) | 18.29 % | 15.48 % | 16.96 % | |
Net interest margin | 3.41 % | 2.98 % | 3.18 % | |
Efficiency ratio(2) | 49.47 % | 56.30 % | 49.52 % | |
Tangible common equity/tangible assets(1) | 8.13 % | 8.43 % | 9.28 % | |
Loan/deposit ratio | 79.49 % | 70.79 % | 80.93 % | |
Nonperforming assets/assets | 0.23 % | 0.30 % | 0.18 % | |
Allowance for credit losses/loans | 1.61 % | 1.17 % | 1.36 % | |
FY2020 | ||||
Return on average assets(1) | 1.02 % | 0.96 % | 1.20 % | |
Return on average tangible common equity(1) | 12.74 % | 11.57 % | 13.44 % | |
Net interest margin | 3.56 % | 3.27 % | 3.54 % | |
Efficiency ratio(2) | 47.10 % | 55.70 % | 49.61 % | |
Tangible common equity/tangible assets(1) | 8.40 % | 8.63 % | 9.51 % | |
Loan/deposit ratio | 90.48 % | 80.64 % | 87.31 % | |
Nonperforming assets/assets | 0.45 % | 0.47 % | 0.29 % | |
Allowance for credit losses/loans | 1.89 % | 1.42 % | 1.58 % |
(1) Non-GAAP Measure, Refer to Appendix for Reconciliation. | 4 |
(2) Tax equivalent; excludes amortization on intangibles. |
Executive Leadership Team
JAMES B. LALLY | KEENE S. TURNER | SCOTT R. GOODMAN |
55, President & Chief Executive | 44, SEVP, Chief Financial | 60, SEVP, President, |
Officer, EFSC | Officer, EFSC | Enterprise Bank & Trust |
Enterprise Tenure - 20 years | Enterprise Tenure - 10 years | Enterprise Tenure - 20 years |
DOUGLAS N. BAUCHE | BRIDGET HUFFMAN | NICOLE M. IANNACONE | MARK G. PONDER |
54, SEVP, Chief Credit Officer, | 41, SEVP, Chief Risk Officer, | 43, SEVP, Chief Legal Officer, | 53, SEVP, Chief Administrative |
Enterprise Bank & Trust | Enterprise Bank & Trust | Enterprise Bank & Trust | Officer, Enterprise Bank & Trust |
Enterprise Tenure - 23 years | Enterprise Tenure - 13 years | Enterprise Tenure - 9 years | Enterprise Tenure - 11 years |
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Company Snapshot - EFSC
Total Assets
$14.0 Billion
• Proven Ability to Grow |
Commercial & Industrial "C&I" |
Loans |
Market Cap*
Talent
• Product Breadth |
◦ Commercial and Specialty |
$1.4 Billion
Operates in | ||||
Strength | ||||
Las Vegas | Kansas City | St. Louis | ||
Los Angeles | New Mexico | |||
San Diego | Phoenix | Dallas | Orlando | |
The Company has deposit and SBA loan production | Passion | |||
offices across the country. | ||||
*As of November 08, 2023 |
Lending | ||
◦ | SBA | |
◦ | Specialty Deposits | |
◦ | Card Services | |
◦ | Treasury Management | |
• | Relationship Sales Model | |
Focused on Privately-Owned | ||
Businesses | ||
• | Diversified Deposit Base | |
• Strong Balance Sheet with | ||
Attractive Risk Profile |
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Differentiated Business Model
Provides Multiple Channels to Drive Growth and Earnings
Community | Lending |
Banking | Specialties |
• Business banking | • National SBA |
model | lending |
• C&I focus | • Sponsor Finance |
• Treasury | • Tax credit |
management | • Life insurance |
services | premium finance |
Focused and Well-Defined
• CRE lending
Strategy• ConsumerAimedloans/at Business
Owners,deposits Executives and
• 42 branch
Professionals.
locations
- 52 ATMs and ITMs
Deposit
Specialties
- Community associations
- Property management
- Third party escrow
- Trust services
- Relationships from lending specialties
Geographic | Fee Income |
Footprint | Sources |
• Midwest | • Deposit service |
◦ St. Louis, MO | charges |
◦ Kansas City, MO | • Wealth |
• Southwest | management |
◦ Phoenix, AZ | • Card services |
◦ Los Alamos, NM | • Tax credit |
Experienced Bankers and | |
◦ Santa Fe, NM | |
◦ Albuquerque, NM | Advisors |
◦ Las Vegas, NV | |
◦ Dallas, TX |
• West
◦ Los Angeles, CA
◦ San Diego, CA
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Best-In-Class Technology Partnerships
Client journey supported by a competitive digital product set.
TARGET | ONBOARD | SERVICE | PROTECT |
Online Banking | Positive Pay | |
integrated with | (Check & ACH) | |
Client Portal | treasury products | |
Integrations for
APIs for HOA/PM
Weiland Account
Analysis
GROW
Customer surveys
Salesforce integrated with core for 360 client view
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Diversified Revenue
(2022 financial data)
Diversified Revenue Streams
Midwest | Specialty | Midwest | ||||
Lending | 35.8% | |||||
Southwest | 32.4% | |||||
Net Interest | $474 | |||||
West | ||||||
Income | Million | |||||
Specialty Lending | ||||||
West | Southwest | |||||
Treasury | 15.5% | 16.3% | ||||
Management | ||||||
$1.9B in Assets | Tax Credit | Deposit Service | ||||
Under Management | Income | Charges 30.9% | ||||
4.4% | ||||||
Card Services | Card | |||||
Noninterest | ||||||
Tax Credit Services | Services | $59 | BOLI | |||
Mortgage Banking | Income | 19.6% | Million | 5.6% | ||
Wealth | ||||||
Community | Community | |||||
Management | ||||||
Development | 16.9% | Other income | Development | |||
8.9% | ||||||
13.7% | ||||||
Other Services
(1)A Non-GAAP Measure, Refer to Appendix for Reconciliation.
Operating Revenue
$533 Million
3.89% NIM
49.8% Core Efficiency
Ratio(1)
1.9% PPNR ROAA(1)
19.1% ROATCE(1)
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Regional and National Markets | ||||
In Billions | 3Q23 | |||
$5.6 | ||||
$5.0 | ||||
$3.9 | ||||
$3.2 | $3.3 | |||
$2.5 | $1.8 | $1.8 | ||
$1.5 | ||||
$1.3 | ||||
$- | ||||
Specialty | Midwest | Southwest | West | |
Loans* | Deposits |
- Excludes $267MM of Other loans.
Region Components: Midwest (St. Louis & Kansas City), Southwest (AZ, NM, Las Vegas, TX), West (Southern California)
Deposit Market | Deposit Market | ||
MSA | Branches | Rank1 | Share1 |
St. Louis, MO-IL | 17 | 5 | 4.4% |
Kansas City, MO-KS | 7 | 15 | 1.2% |
Phoenix-Mesa-Chandler, AZ | 2 | 26 | 0.2% |
Los Alamos, NM | 2 | 1 | 74.7% |
Santa Fe, NM | 3 | 5 | 14.3% |
Albuquerque, NM | 1 | 16 | 0.6% |
Las Vegas-Henderson-North Las Vegas, NV | 1 | 28 | 0.1% |
San Diego-ChulaVista-Carlsbad, CA | 2 | 8 | 2.6% |
Los Angeles-LongBeach-Anaheim, CA | 6 | 37 | 0.2% |
Orlando-Kissimmee-Sanford, FL | 1 | 43 | -% |
- Source: 06/30/23 data for market rank and market share; S&P Global Market Intelligence.
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Disclaimer
Enterprise Financial Services Corporation published this content on 14 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2023 14:37:59 UTC.
