Fourth Quarter Results
- Net income of $48.8 million, or $1.28 per diluted common
share, compared to $1.32 in the linked quarter and $1.16 in the
prior year quarter
- Net interest income of $146.4 million, quarterly increase of
$2.9 million
- Net interest margin (“NIM”) of 4.13%, quarterly decrease of
4 basis points
- Total loans of $11.2 billion, quarterly increase of $140.5
million, or 5% annualized
- Total deposits of $13.1 billion, quarterly increase of
$681.2 million
- Return on Average Assets (“ROAA”) of 1.27%, compared to
1.36% in the linked quarter and 1.23% in the prior year
quarter
- Return on Average Tangible Common Equity (“ROATCE”)1 of
13.63%, compared to 14.55% in the linked quarter and 14.38% in the
prior year quarter
- Repurchased 206,529 shares and increased quarterly dividend
$0.01 to $0.29 per common share for the first quarter 2025
2024 Results
- Net income of $185.3 million, or $4.83 per diluted common
share, compared to $5.07 in the prior year
- Net interest income of $568.1 million, an increase of $5.5
million compared to the prior year
- Total loans increased $336.2 million, or 3%
- Total deposits increased $970.1 million, or 8%
- ROAA of 1.25%, compared to 1.41% in the prior year
- ROATCE1 of 13.58%, compared to 16.25% in the prior
year
- Tangible common equity to tangible assets1 of
9.05%
- Tangible book value per common share1 of $37.27, an increase
of $3.42, or 10%, from the prior year
- Repurchased 626,778 shares
Jim Lally, President and Chief Executive Officer of Enterprise
Financial Services Corp (Nasdaq: EFSC) (the “Company” or
“EFSC”), commented, “I am pleased that a continued focus on
clients, associates, and our diversified business model has
resulted in strong fourth quarter and full year 2024 financial
results. These results, along with share repurchases and an
increased common stock dividend, demonstrate our commitment to
driving long-term shareholder value.”
Lally added, “We reported diluted earnings per share of $1.28
for the fourth quarter and $4.83 for the full year 2024. Our
earnings resulted in a 1.27% ROAA and a 13.63% ROATCE1 for the
fourth quarter. For the full year, we had a 1.25% ROAA and a 13.58%
ROATCE1. We continued to grow the loan portfolio in a challenging
interest rate environment, while also significantly increasing the
deposit portfolio through granular client relationships. We have
also made a significant investment in our operational and growth
capabilities in 2024, with the completion of a core system
conversion in the fourth quarter and the addition of new talent in
our higher growth markets. As we look to 2025, we expect to
continue to leverage these investments and capitalize on
opportunities to grow and strengthen the Company.”
Full-Year Highlights For 2024, net income was $185.3
million, or $4.83 per diluted share, compared to $194.1 million, or
$5.07 per diluted share, in 2023. Pre-provision net revenue
(“PPNR”)2 for 2024 was $255.2 million, compared to $284.8 million
in 2023. The decrease in PPNR2 in 2024 was primarily due to
increases in employee compensation and benefits, deposit costs and
expenses incurred on the core system conversion, partially offset
by an increase in operating revenue. Offsetting the decrease in
PPNR2 was a $15.1 million decrease in the provision for credit
losses in 2024 compared to 2023 due to an improvement in overall
asset quality.
NIM decreased to 4.16% in 2024, from 4.43% in 2023, primarily
due to the impact of higher interest expense on the deposit
portfolio from an increase in deposit rates and average balances.
The total cost of deposits was 2.12% in 2024 compared to 1.58% in
2023. Offsetting the decline in NIM was a $995.0 million increase
in average interest earning assets, which resulted in total net
interest income of $568.1 million, a $5.5 million increase over the
prior year.
Noninterest income was $69.7 million, an increase of $1.0
million from $68.7 million in 2023. Total noninterest expense was
$385.0 million in 2024, an 11% increase from $348.2 million in
2023. The increase was primarily from higher customer deposit
servicing costs due to higher average balances and an increase in
earnings credit rates, an increase in compensation due to the
recruitment of new relationship bankers and annual merit increases,
and expenses related to the core system conversion. The core
efficiency ratio2 was 58.4% in 2024, compared to 53.4% in 2023.
Nonperforming assets were 0.30% of total assets at the end of
2024, compared to 0.34% at the end of 2023. Net charge-offs were
0.16% of average loans in 2024, compared to 0.37% in 2023. The
allowance for credit losses was 1.23% of total loans at the end of
2024, compared to 1.24% at the end of 2023. Excluding guaranteed
portions of loans, the allowance to loans ratio2 was 1.34% and
1.35% at the end of 2024 and 2023, respectively. The provision for
credit losses was $21.5 million and $36.6 million in 2024 and 2023,
respectively.
The Company maintained a strong liquidity position in 2024, with
total deposits of $13.1 billion, a loan-to-deposit ratio of 85.3%
and cash and investment securities of $3.6 billion as of December
31, 2024. This compares to total deposits of $12.2 billion, a
loan-to-deposit ratio of 89.4% and cash and investment securities
of $2.9 billion at the end of 2023. Non-interest bearing deposits
comprise 34.1% of total deposits at December 31, 2024, compared to
32.5% at the end of 2023. Excluding brokered certificates of
deposits, core deposits as of December 31, 2024 totaled $12.7
billion, an increase of $968.3 million from the prior year.
Total shareholders’ equity was $1.8 billion and $1.7 billion as
of December 31, 2024 and December 31, 2023, respectively. The
increase was primarily due to net income of $185.3 million, offset
by dividends and $29.6 million of share repurchases in 2024. The
Company returned $39.6 million, or $1.06 per share, to common
shareholders and $3.8 million, or $50.00 per share, to preferred
shareholders in 2024.
Fourth Quarter Highlights
- Earnings - Net income in the fourth quarter 2024 was
$48.8 million, a decrease of $1.8 million and an increase of $4.3
million compared to the linked and prior year quarters,
respectively. Earnings per diluted share was $1.28 for the fourth
quarter 2024, compared to $1.32 and $1.16 for the linked and prior
year quarters, respectively. Adjusted diluted earnings per common
share2 was $1.32 for the fourth quarter 2024, compared to $1.29 and
$1.20 for the linked and prior year quarters, respectively.
- PPNR3 - PPNR of $69.4 million in the fourth quarter 2024
increased $4.3 million and decreased $6.3 million from the linked
and prior year quarters, respectively. The increase from the linked
quarter was primarily due to an increase in both net interest
income and noninterest income, partially offset by an increase in
employee compensation and benefits due to higher self-insured
medical claims and an increase in expenses related to the core
system conversion. The decrease from the prior year quarter was
primarily due to an increase in customer deposit servicing costs
and core conversion expenses.
- Net interest income and NIM - Net interest income of
$146.4 million for the fourth quarter 2024 increased $2.9 million
and $5.6 million from the linked and prior year quarters,
respectively. NIM was 4.13% for the fourth quarter 2024, compared
to 4.17% and 4.23% for the linked and prior year quarters,
respectively. Compared to the linked quarter, net interest income
increased due to higher average loan and investment balances,
expanding yields on the investment portfolio and a decrease in
rates paid on interest-bearing deposits.
- Noninterest income - Noninterest income of $20.6 million
for the fourth quarter 2024 decreased $0.8 million and $4.8 million
from the linked and prior year quarters, respectively. The decrease
from the linked quarter was primarily due to a net gain on sale of
other real estate owned in the linked quarter, partially offset by
an increase in tax credit income as a result of higher volumes.
Compared to the prior year quarter, the decrease was primarily
related to a decrease in tax credit income and income from
community development investments.
- Noninterest expense - Noninterest expense of $99.5
million for the fourth quarter 2024 increased $1.5 million and $6.9
million from the linked and prior year quarters, respectively. The
increase from linked and prior year quarters was primarily driven
by higher employee compensation and expenses related to the core
system conversion. Compared to the prior year quarter, the increase
was also attributed to higher deposit servicing costs.
- Loans - Total loans increased $140.5 million from the
linked quarter to $11.2 billion as of December 31, 2024. Loans grew
5% on an annualized basis from the linked quarter, and 3% for the
year. Average loans totaled $11.1 billion for the fourth quarter
2024, compared to $11.0 billion and $10.7 billion for the linked
and prior year quarters, respectively.
- Asset quality - The allowance for credit losses to loans
was 1.23% at December 31, 2024, compared to 1.26% at September 30,
2024 and 1.24% at December 31, 2023. The ratio of nonperforming
assets to total assets was 0.30% at December 31, 2024, compared to
0.22% and 0.34% at September 30, 2024 and December 31, 2023,
respectively. The provision for credit losses recorded in the
fourth quarter 2024 was $6.8 million, compared to $4.1 million and
$18.1 million for the linked and prior year quarters,
respectively.
- Deposits - Total deposits increased $681.2 million from
the linked quarter to $13.1 billion as of December 31, 2024.
Excluding brokered certificates of deposits, deposits increased
$677.5 million. Average deposits totaled $13.0 billion for the
fourth quarter 2024, compared to $12.5 billion and $12.2 billion
for the linked and prior year quarters, respectively. At December
31, 2024, noninterest-bearing deposits totaled $4.5 billion, or
34.1% of total deposits, and the loan to deposit ratio was
85.3%.
- Liquidity - The total available on- and
off-balance-sheet liquidity was approximately $6.3 billion at
December 31, 2024. On-balance-sheet liquidity consisted of cash of
$764.2 million and $1.3 billion in unpledged investment securities
at December 31, 2024. Off-balance-sheet liquidity consisted of $1.3
billion available through the Federal Home Loan Bank, $2.8 billion
available through the Federal Reserve and $140.0 million through
correspondent bank lines.
- Capital - Total shareholders’ equity was $1.8 billion
and the tangible common equity to tangible assets4 was 9.05% at
December 31, 2024, compared to 9.50% at September 30, 2024.
Enterprise Bank & Trust remains “well-capitalized,” with a
common equity tier 1 ratio of 12.4% and a total risk-based capital
ratio of 13.4% as of December 31, 2024. The Company’s common equity
tier 1 ratio and total risk-based capital ratio was 11.8% and
14.6%, respectively, at December 31, 2024. The Company’s Board of
Directors approved a quarterly dividend of $0.29 per common share,
payable on March 31, 2025 to shareholders of record as of March 14,
2025. The Board of Directors also declared a cash dividend of
$12.50 per share of Series A Preferred Stock (or $0.3125 per
depositary share) representing a 5% per annum rate for the period
commencing (and including) December 15, 2024 to (but excluding)
March 15, 2025. The dividend will be payable on March 15, 2025 and
will be paid on March 17, 2025 to shareholders of record on
February 28, 2025.
_______________________________
1
ROATCE, tangible common equity to tangible
assets, and tangible book value per common share are non-GAAP
measures. Please refer to discussion and reconciliation of these
measures in the accompanying financial tables.
2
PPNR, core efficiency ratio, allowance to
loans ratio excluding guaranteed loans, and adjusted diluted
earnings per share are non-GAAP measures. Please refer to
discussion and reconciliation of these measures in the accompanying
financial tables.
3
PPNR is a non-GAAP measure. Please refer
to discussion and reconciliation of this measures in the
accompanying financial tables.
4
Tangible common equity to tangible assets
is a non-GAAP measure. Please refer to discussion and
reconciliation of this measure in the accompanying financial
tables
Net Interest Income and NIM Average Balance Sheets The
following table presents, for the periods indicated, certain
information related to our average interest-earning assets and
interest-bearing liabilities, as well as, the corresponding
interest rates earned and paid, all on a tax-equivalent basis.
Quarter ended
December 31, 2024
September 30, 2024
December 31, 2023
($ 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:
Loans1, 2
$
11,100,112
$
187,761
6.73
%
$
10,971,575
$
191,638
6.95
%
$
10,685,961
$
184,982
6.87
%
Securities2
2,748,063
24,279
3.51
2,503,124
21,404
3.40
2,276,915
18,385
3.20
Interest-earning deposits
474,878
5,612
4.70
402,932
5,348
5.28
420,762
5,631
5.31
Total interest-earning assets
14,323,053
217,652
6.05
13,877,631
218,390
6.26
13,383,638
208,998
6.20
Noninterest-earning assets
986,524
971,824
949,166
Total assets
$
15,309,577
$
14,849,455
$
14,332,804
Liabilities and Shareholders’
Equity
Interest-bearing liabilities:
Interest-bearing demand accounts
$
3,238,964
$
19,517
2.40
%
$
3,018,309
$
20,002
2.64
%
$
2,844,847
$
17,248
2.41
%
Money market accounts
3,588,326
30,875
3.42
3,551,492
33,493
3.75
3,342,979
30,579
3.63
Savings accounts
547,176
278
0.20
561,466
345
0.24
609,645
268
0.17
Certificates of deposit
1,361,575
14,323
4.18
1,368,339
14,928
4.34
1,373,808
14,241
4.11
Total interest-bearing deposits
8,736,041
64,993
2.96
8,499,606
68,768
3.22
8,171,279
62,336
3.03
Subordinated debentures and notes
156,472
2,634
6.70
156,329
2,695
6.86
155,907
2,475
6.30
FHLB advances
3,370
42
4.96
4,565
59
5.14
—
—
—
Securities sold under agreements to
repurchase
156,082
1,245
3.17
140,255
1,217
3.45
150,827
1,226
3.22
Other borrowings
36,201
96
1.05
36,226
96
1.05
49,013
314
2.54
Total interest-bearing liabilities
9,088,166
69,010
3.02
8,836,981
72,835
3.28
8,527,026
66,351
3.09
Noninterest-bearing liabilities:
Demand deposits
4,222,115
4,046,480
3,992,067
Other liabilities
154,787
161,625
160,829
Total liabilities
13,465,068
13,045,086
12,679,922
Shareholders' equity
1,844,509
1,804,369
1,652,882
Total liabilities and shareholders'
equity
$
15,309,577
$
14,849,455
$
14,332,804
Total net interest income
$
148,642
$
145,555
$
142,647
Net interest margin
4.13
%
4.17
%
4.23
%
1 Average balances include nonaccrual
loans. Interest income includes loan fees of $2.4 million, $2.6
million, and $3.1 million for the three months ended December 31,
2024, September 30, 2024, and December 31, 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 $2.3 million, $2.1 million, and
$1.9 million for the three months ended December 31, 2024,
September 30, 2024, and December 31, 2023, respectively.
Net interest income for the fourth quarter was $146.4 million,
an increase of $2.9 million and $5.6 million from the linked and
prior year quarters, respectively. Net interest income on a tax
equivalent basis was $148.6 million, $145.6 million, and $142.6
million for the current, linked and prior year quarters,
respectively. The increase from the linked quarter was primarily
due to growth in interest earning assets and lower rates paid on
interest-bearing liabilities, specifically money market accounts
and certificates of deposit. In late September 2024, the Federal
Reserve began reducing the federal funds target rate by a total of
100 basis points through the end of 2024. In response, the Company
adjusted deposit pricing to partially mitigate the impact on income
from the repricing of variable rate loans. The increase from the
prior year quarter is primarily due to organic growth in loans and
an increase in the investment portfolio.
Interest income for the fourth quarter decreased $0.9 million as
compared to the linked quarter primarily due to a $3.9 million
decrease in loan interest income as a result of the repricing of
variable rate loans, partially offset by a $2.7 million increase in
interest on debt securities from an expanded investment portfolio
at higher yields. Compared to the prior year quarter, interest
income increased $8.3 million primarily due to an increase in
average interest earning balances. 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 fourth
quarter 2024 was 7.10%, a decrease of 74 basis points from the
linked quarter. Investment purchases in the fourth quarter 2024 had
a weighted average, tax equivalent yield of 5.10%.
Interest expense decreased $3.8 million in the fourth quarter
2024 as compared to the linked quarter primarily due to decreased
interest paid on deposits. The average cost of interest-bearing
deposits was 2.96%, a decrease of 26 basis points compared to the
linked quarter. The total cost of deposits, including
noninterest-bearing demand accounts, was 2.00% during the fourth
quarter 2024, compared to 2.18% in the linked quarter.
NIM, on a tax equivalent basis, was 4.13% in the fourth quarter
2024, a decrease of 4 basis points from the linked quarter and a
decrease of 10 basis points from the prior year quarter. For the
month of December 2024, the loan portfolio yield was 6.69% and the
cost of total deposits was 1.91%.
Investments
At
December 31, 2024
September 30, 2024
December 31, 2023
($ in thousands)
Carrying
Value
Net
Unrealized
Loss
Carrying
Value
Net
Unrealized
Loss
Carrying
Value
Net
Unrealized
Loss
Available-for-sale (AFS)
$
1,862,270
$
(163,212
)
$
1,786,793
$
(122,158
)
$
1,618,273
$
(150,861
)
Held-to-maturity (HTM)
928,935
(70,321
)
851,647
(46,351
)
750,434
(54,572
)
Total
$
2,791,205
$
(233,533
)
$
2,638,440
$
(168,509
)
$
2,368,707
$
(205,433
)
Investment securities totaled $2.8 billion at December 31, 2024,
an increase of $152.8 million from the linked quarter. The tangible
common equity to tangible assets ratio adjusted for unrealized
losses on held-to-maturity securities5 was 8.71% at December 31,
2024, compared to 9.26% at September 30, 2024.
Loans The following table presents total loans for the
most recent five quarters:
At
($ in thousands)
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
December 31,
2023
C&I
$
2,139,032
$
2,145,286
$
2,107,097
$
2,263,817
$
2,186,203
CRE investor owned
2,405,356
2,346,575
2,308,926
2,280,990
2,291,660
CRE owner occupied
1,305,025
1,322,714
1,313,742
1,279,929
1,262,264
SBA loans*
1,298,007
1,272,679
1,269,145
1,274,780
1,281,632
Sponsor finance*
782,722
819,079
865,883
865,180
872,264
Life insurance premium finance*
1,114,299
1,030,273
996,154
1,003,597
956,162
Tax credits*
760,229
724,441
738,249
718,383
734,594
Residential real estate
350,640
346,460
339,889
354,615
359,957
Construction and land development
794,240
796,586
791,780
726,742
670,567
Other
270,805
275,799
269,142
260,459
268,815
Total loans
$
11,220,355
$
11,079,892
$
11,000,007
$
11,028,492
$
10,884,118
Quarterly loan yield
6.73
%
6.95
%
6.95
%
6.87
%
6.87
%
Variable interest rate loans to total
loans
60
%
61
%
61
%
61
%
61
%
*Specialty loan category
Loans totaled $11.2 billion at December 31, 2024, increasing
$140.5 million, or 5% on an annualized basis, from the linked
quarter. The increase was driven primarily by increases of $108.8
million and $41.1 million in specialty lending and commercial real
estate, respectively. Average line utilization was approximately
42% for the quarter ended December 31, 2024, compared to 44% and
42% for the linked and prior year quarters, respectively.
Asset Quality The following table presents the categories
of nonperforming assets and related ratios for the most recent five
quarters:
At
($ in thousands)
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
December 31,
2023
Nonperforming loans*
$
42,687
$
28,376
$
39,384
$
35,642
$
43,728
Other
3,955
4,516
8,746
8,466
5,736
Nonperforming assets*
$
46,642
$
32,892
$
48,130
$
44,108
$
49,464
Nonperforming loans to total loans
0.38
%
0.26
%
0.36
%
0.32
%
0.40
%
Nonperforming assets to total assets
0.30
%
0.22
%
0.33
%
0.30
%
0.34
%
Allowance for credit losses
$
137,950
$
139,778
$
139,464
$
135,498
$
134,771
Allowance for credit losses to loans
1.23
%
1.26
%
1.27
%
1.23
%
1.24
%
Quarterly net charge-offs
$
7,131
$
3,850
$
605
$
5,864
$
28,479
*Guaranteed balances excluded
$
21,974
$
11,899
$
12,933
$
9,630
$
10,682
Nonperforming assets increased $13.8 million during the fourth
quarter 2024 and decreased $2.8 million from the prior year
quarter. The increase from the prior quarter was primarily due to
two relationships that are being actively monitored. Net
charge-offs totaled 16 basis points of average loans in 2024,
compared to 37 basis points in 2023. Annualized net charge-offs
totaled 26 basis points of average loans in the fourth quarter
2024, compared to 14 basis points in the linked quarter and 106
basis points in the prior year quarter.
The provision for credit losses totaled $6.8 million in the
fourth quarter 2024, compared to $4.1 million and $18.1 million in
the linked and prior year quarters, respectively. The provision for
credit losses in the fourth quarter 2024 was primarily related to
charge-offs and loan growth. The decline in the provision for
credit losses in the fourth quarter 2024 compared to the prior year
quarter was related to the reduction in net charge offs.
Deposits The following table presents deposits broken out
by type for the most recent five quarters:
At
($ in thousands)
December 31,
2024
September 30,
2024
June 30,
2024
March 31,
2024
December 31,
2023
Noninterest-bearing demand accounts
$
4,484,072
$
3,934,245
$
3,928,308
$
3,805,334
$
3,958,743
Interest-bearing demand accounts
3,175,292
3,048,981
2,951,899
2,956,282
2,950,259
Money market and savings accounts
4,117,524
4,121,543
4,039,626
4,006,702
3,994,455
Brokered certificates of deposit
484,588
480,934
494,870
659,005
482,759
Other certificates of deposit
885,016
879,619
867,680
826,378
790,155
Total deposit portfolio
$
13,146,492
$
12,465,322
$
12,282,383
$
12,253,701
$
12,176,371
Noninterest-bearing deposits to total
deposits
34.1
%
31.6
%
32.0
%
31.1
%
32.5
%
Total costs of deposits
2.00
%
2.18
%
2.16
%
2.13
%
2.03
%
Total deposits at December 31, 2024 were $13.1 billion, an
increase of $681.2 million and $970.1 million from the linked and
prior year quarters, respectively. Excluding brokered certificates
of deposits, deposits increased $677.5 million and $968.3 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 $1.3
billion at December 31, 2024, compared to $1.2 billion at September
30, 2024.
Noninterest Income The following table presents a
comparative summary of the major components of noninterest income
for the periods indicated:
Linked quarter comparison
Prior year comparison
Quarter ended
Quarter ended
($ in thousands)
December 31,
2024
September 30,
2024
Increase (decrease)
December 31,
2023
Increase (decrease)
Deposit service charges
$
4,730
$
4,649
$
81
2
%
$
4,334
$
396
9
%
Wealth management revenue
2,719
2,599
120
5
%
2,428
291
12
%
Card services revenue
2,484
2,573
(89
)
(3
)%
2,666
(182
)
(7
)%
Tax credit income
6,018
3,252
2,766
85
%
9,688
(3,670
)
(38
)%
Other income
4,680
8,347
(3,667
)
(44
)%
6,336
(1,656
)
(26
)%
Total noninterest income
$
20,631
$
21,420
$
(789
)
(4
)%
$
25,452
$
(4,821
)
(19
)%
Total noninterest income for the fourth quarter 2024 was $20.6
million, a decrease of $0.8 million and $4.8 million from the
linked and prior year quarters, respectively. The decrease from the
linked quarter was primarily due to a net gain on sale of other
real estate owned in the third quarter 2024 that did not reoccur,
partially offset by an increase in tax credit income. Tax credit
income is typically highest in the fourth quarter of each year and
will vary in other periods based on transaction volumes and fair
value changes on credits carried at fair value. The decrease from
the prior year quarter was primarily due to a decrease in tax
credit income and income from community development
investments.
The following table presents a comparative summary of the major
components of other income for the periods indicated:
Linked quarter comparison
Prior year comparison
Quarter ended
Quarter ended
($ in thousands)
December 31,
2024
September 30,
2024
Increase (decrease)
December 31,
2023
Increase (decrease)
BOLI
$
895
$
1,123
$
(228
)
(20
)%
$
1,279
$
(384
)
(30
)%
Community development investments
297
1,177
(880
)
(75
)%
1,027
(730
)
(71
)%
Private equity fund distributions
320
614
(294
)
(48
)%
725
(405
)
(56
)%
Servicing fees
528
539
(11
)
(2
)%
774
(246
)
(32
)%
Swap fees
972
17
955
5,618
%
163
809
496
%
Gain (loss) on sale of other real estate
owned
(68
)
3,159
(3,227
)
(102
)%
—
(68
)
—
%
Miscellaneous income
1,736
1,718
18
1
%
2,368
(632
)
(27
)%
Total other income
$
4,680
$
8,347
$
(3,667
)
(44
)%
$
6,336
$
(1,656
)
(26
)%
The decrease in other income in the fourth quarter 2024 compared
to the linked quarter was driven by a $3.2 million decrease in the
net gain on sale of other real estate owned, as well as a decrease
in income from community development investments. Compared to the
prior year quarter, the decrease in other income was primarily
related to a decrease in income from community development
investments and private equity fund distributions. Community
development investment income and private equity fund distributions
are not consistent sources of income and fluctuate based on
distributions from the underlying funds.
Noninterest Expense The following table presents a
comparative summary of the major components of noninterest expense
for the periods indicated:
Linked quarter comparison
Prior year comparison
Quarter ended
Quarter ended
($ in thousands)
December 31,
2024
September 30,
2024
Increase (decrease)
December 31,
2023
Increase (decrease)
Employee compensation and benefits
$
46,168
$
45,359
$
809
2
%
$
39,651
$
6,517
16
%
Deposit costs
22,881
23,781
(900
)
(4
)%
21,606
1,275
6
%
Occupancy
4,336
4,372
(36
)
(1
)%
4,313
23
1
%
Core conversion expense
1,893
1,375
518
38
%
—
1,893
—
%
FDIC special assessment
—
—
—
—
%
2,412
(2,412
)
(100
)%
Other expense
24,244
23,120
1,124
5
%
24,621
(377
)
(2
)%
Total noninterest expense
$
99,522
$
98,007
$
1,515
2
%
$
92,603
$
6,919
7
%
Noninterest expense was $99.5 million for the fourth quarter
2024, a $1.5 million and $6.9 million increase from the linked and
prior year quarters, respectively. Employee compensation and
benefits increased $0.8 million and $6.5 million from the linked
and prior year quarters, respectively, because of increases in
self-insured medical claims and variable compensation. Compared to
the prior year quarter, the increase was primarily due to higher
compensation and benefits from merit increases and the recruitment
of new bankers. Additionally, expenses related to the core system
conversion increased by $0.5 million and $1.9 million from the
linked and prior year quarters, respectively, due to the completion
of the project in the fourth quarter 2024. Compared to the linked
quarter, the increase in noninterest expense was partially offset
by lower deposit costs, which decreased $0.9 million during the
quarter. The year-over-year increases in noninterest expense were
partially offset by a decrease in the FDIC special assessment.
For the fourth quarter 2024, the Company’s core efficiency
ratio6 was 57.1% for the quarter ended December 31, 2024, compared
to 58.4% for the linked quarter and 53.1% for the prior year
quarter.
Income Taxes The Company’s effective tax rate was 19.5%
in the fourth quarter 2024, compared to 19.4% and 19.8% in the
linked and prior year quarters, respectively. The Company continues
to leverage tax credit opportunities as part of its tax planning
strategy.
Capital The following table presents total equity and
various EFSC capital ratios for the most recent five quarters:
At
($ in thousands)
December 31,
2024*
September 30,
2024
June 30,
2024
March 31,
2024
December 31,
2023
Shareholders’ equity
$
1,824,002
$
1,832,011
$
1,755,273
$
1,731,725
$
1,716,068
Total risk-based capital to risk-weighted
assets
14.6
%
14.8
%
14.6
%
14.3
%
14.2
%
Tier 1 capital to risk-weighted assets
13.1
%
13.2
%
13.0
%
12.8
%
12.7
%
Common equity tier 1 capital to
risk-weighted assets
11.8
%
11.9
%
11.7
%
11.4
%
11.3
%
Leverage ratio
11.1
%
11.2
%
11.1
%
11.0
%
11.0
%
Tangible common equity to tangible
assets
9.05
%
9.50
%
9.18
%
9.01
%
8.96
%
*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 December 31, 2024, a decrease
of $8.0 million from the linked quarter. The Company’s tangible
common book value per common share5 was $37.27 at December 31,
2024, compared to $37.26 and $33.85 in the linked and prior year
quarters, 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.
_______________________________
5
Tangible common equity to tangible assets
ratio adjusted for unrealized losses on held-to-maturity securities
is a non-GAAP measure. Please refer to discussion and
reconciliation of this measures in the accompanying financial
tables.
6
Core efficiency ratio and tangible common
book value per common share are non-GAAP measures. Please refer to
discussion and reconciliation of these measures in the accompanying
financial tables.
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 equity,
PPNR, ROATCE, core efficiency ratio, the tangible common equity
ratio, tangible book value per common share, adjusted ROAA 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 ratio, tangible
book value per common share, adjusted ROAA 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 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 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, January 28, 2025. During the call, management will review
the fourth 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. After connecting, you may say the name
of the conference or enter the Conference ID 35973. We encourage
participants to pre-register for the conference call using the
following link: https://bit.ly/EFSC4Q2024EarningsCallRegistration.
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 $15.6
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, natural disasters (such as
wildfires and earthquakes), 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
Year ended
(in thousands, except per share data)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2023
EARNINGS SUMMARY
Net interest income
$
146,370
$
143,469
$
140,529
$
137,728
$
140,732
$
568,096
$
562,592
Provision for credit losses
6,834
4,099
4,819
5,756
18,053
21,508
36,605
Noninterest income
20,631
21,420
15,494
12,158
25,452
69,703
68,725
Noninterest expense
99,522
98,007
94,017
93,501
92,603
385,047
348,186
Income before income tax expense
60,645
62,783
57,187
50,629
55,528
231,244
246,526
Income tax expense
11,811
12,198
11,741
10,228
10,999
45,978
52,467
Net income
48,834
50,585
45,446
40,401
44,529
185,266
194,059
Preferred stock dividends
937
938
937
938
937
$
3,750
$
3,750
Net income available to common
shareholders
$
47,897
$
49,647
$
44,509
$
39,463
$
43,592
$
181,516
$
190,309
Diluted earnings per common share
$
1.28
$
1.32
$
1.19
$
1.05
$
1.16
$
4.83
$
5.07
Adjusted diluted earnings per share1
$
1.32
$
1.29
$
1.21
$
1.07
$
1.20
$
4.88
$
5.11
Return on average assets
1.27
%
1.36
%
1.25
%
1.12
%
1.23
%
1.25
%
1.41
%
Adjusted return on average assets1
1.31
%
1.32
%
1.27
%
1.14
%
1.28
%
1.26
%
1.41
%
Return on average common equity
10.75
%
11.40
%
10.68
%
9.52
%
10.94
%
10.60
%
12.27
%
Adjusted return on average common
equity1
11.08
%
11.09
%
10.90
%
9.70
%
11.35
%
10.71
%
12.35
%
ROATCE1
13.63
%
14.55
%
13.77
%
12.31
%
14.38
%
13.58
%
16.25
%
Adjusted ROATCE1
14.05
%
14.16
%
14.06
%
12.53
%
14.92
%
13.71
%
16.35
%
Net interest margin (tax equivalent)
4.13
%
4.17
%
4.19
%
4.13
%
4.23
%
4.16
%
4.43
%
Efficiency ratio
59.59
%
59.44
%
60.26
%
62.38
%
55.72
%
60.37
%
55.15
%
Core efficiency ratio1
57.11
%
58.42
%
58.09
%
60.21
%
53.06
%
58.42
%
53.42
%
Assets
$
15,596,431
$
14,954,125
$
14,615,666
$
14,613,338
$
14,518,590
Average assets
$
15,309,577
$
14,849,455
$
14,646,381
$
14,556,119
$
14,332,804
$
14,841,690
$
13,805,236
Period end common shares outstanding
36,988
37,184
37,344
37,515
37,416
Dividends per common share
$
0.28
$
0.27
$
0.26
$
0.25
$
0.25
$
1.06
$
1.00
Tangible book value per common share1
$
37.27
$
37.26
$
35.02
$
34.21
$
33.85
Tangible common equity to tangible
assets1
9.05
%
9.50
%
9.18
%
9.01
%
8.96
%
Total risk-based capital to risk-weighted
assets2
14.6
%
14.8
%
14.6
%
14.3
%
14.2
%
1 Refer to Reconciliations of Non-GAAP
Financial Measures table for a reconciliation of these measures to
GAAP.
2 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.
ENTERPRISE FINANCIAL SERVICES
CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited)
(continued)
Quarter ended
Year ended
(in thousands, except per share data)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2023
INCOME STATEMENTS
NET INTEREST INCOME
Interest income
$
215,380
$
216,304
$
211,644
$
207,723
$
207,083
$
851,051
$
764,919
Interest expense
69,010
72,835
71,115
69,995
66,351
282,955
202,327
Net interest income
146,370
143,469
140,529
137,728
140,732
568,096
562,592
Provision for credit losses
6,834
4,099
4,819
5,756
18,053
21,508
36,605
Net interest income after provision for
credit losses
139,536
139,370
135,710
131,972
122,679
546,588
525,987
NONINTEREST INCOME
Deposit service charges
4,730
4,649
4,542
4,423
4,334
18,344
16,559
Wealth management revenue
2,719
2,599
2,590
2,544
2,428
10,452
10,030
Card services revenue
2,484
2,573
2,497
2,412
2,666
9,966
10,028
Tax credit income (loss)
6,018
3,252
1,874
(2,190
)
9,688
8,954
9,196
Other income
4,680
8,347
3,991
4,969
6,336
21,987
22,912
Total noninterest income
20,631
21,420
15,494
12,158
25,452
69,703
68,725
NONINTEREST EXPENSE
Employee compensation and benefits
46,168
45,359
44,524
45,262
39,651
181,313
164,566
Deposit costs
22,881
23,781
21,706
20,277
21,606
88,645
72,293
Occupancy
4,336
4,372
4,197
4,326
4,313
17,231
16,526
FDIC special assessment
—
—
—
625
2,412
625
2,412
Core conversion expense
1,893
1,375
1,250
350
—
4,868
—
Other expense
24,244
23,120
22,340
22,661
24,621
92,365
92,389
Total noninterest expense
99,522
98,007
94,017
93,501
92,603
385,047
348,186
Income before income tax expense
60,645
62,783
57,187
50,629
55,528
231,244
246,526
Income tax expense
11,811
12,198
11,741
10,228
10,999
45,978
52,467
Net income
$
48,834
$
50,585
$
45,446
$
40,401
$
44,529
$
185,266
$
194,059
Preferred stock dividends
937
938
937
938
937
3,750
3,750
Net income available to common
shareholders
$
47,897
$
49,647
$
44,509
$
39,463
$
43,592
$
181,516
$
190,309
Basic earnings per common share
$
1.29
$
1.33
$
1.19
$
1.05
$
1.16
$
4.86
$
5.09
Diluted earnings per common share
$
1.28
$
1.32
$
1.19
$
1.05
$
1.16
$
4.83
$
5.07
ENTERPRISE FINANCIAL SERVICES
CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited)
(continued)
At
($ in thousands)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
BALANCE SHEETS
ASSETS
Cash and due from banks
$
270,975
$
210,984
$
176,698
$
157,697
$
193,275
Interest-earning deposits
495,076
218,919
219,342
215,951
243,610
Debt and equity investments
2,863,989
2,714,194
2,460,549
2,443,977
2,434,902
Loans held for sale
110
304
606
610
359
Loans
11,220,355
11,079,892
11,000,007
11,028,492
10,884,118
Allowance for credit losses
(137,950
)
(139,778
)
(139,464
)
(135,498
)
(134,771
)
Total loans, net
11,082,405
10,940,114
10,860,543
10,892,994
10,749,347
Fixed assets, net
45,009
44,368
44,831
44,382
42,681
Goodwill
365,164
365,164
365,164
365,164
365,164
Intangible assets, net
8,484
9,400
10,327
11,271
12,318
Other assets
465,219
450,678
477,606
481,292
476,934
Total assets
$
15,596,431
$
14,954,125
$
14,615,666
$
14,613,338
$
14,518,590
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits
$
4,484,072
$
3,934,245
$
3,928,308
$
3,805,334
$
3,958,743
Interest-bearing deposits
8,662,420
8,531,077
8,354,075
8,448,367
8,217,628
Total deposits
13,146,492
12,465,322
12,282,383
12,253,701
12,176,371
Subordinated debentures and notes
156,551
156,407
156,265
156,124
155,984
FHLB advances
—
150,000
78,000
125,000
—
Other borrowings
280,821
170,815
178,269
195,246
297,829
Other liabilities
188,565
179,570
165,476
151,542
172,338
Total liabilities
13,772,429
13,122,114
12,860,393
12,881,613
12,802,522
Shareholders’ equity:
Preferred stock
71,988
71,988
71,988
71,988
71,988
Common stock
370
372
373
375
374
Additional paid-in capital
990,733
992,642
994,116
995,969
995,208
Retained earnings
877,629
845,844
810,935
778,784
749,513
Accumulated other comprehensive loss
(116,718
)
(78,835
)
(122,139
)
(115,391
)
(101,015
)
Total shareholders’ equity
1,824,002
1,832,011
1,755,273
1,731,725
1,716,068
Total liabilities and shareholders’
equity
$
15,596,431
$
14,954,125
$
14,615,666
$
14,613,338
$
14,518,590
ENTERPRISE FINANCIAL SERVICES
CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited)
(continued)
Year ended
December 31, 2024
December 31, 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:
Loans1, 2
$
10,990,774
$
755,448
6.87
%
$
10,324,951
$
688,439
6.67
%
Securities2
2,512,690
85,130
3.39
2,291,552
71,129
3.10
Interest-earning deposits
368,221
18,918
5.14
260,214
13,430
5.16
Total interest-earning assets
13,871,685
859,496
6.20
12,876,717
772,998
6.00
Noninterest-earning assets
970,005
928,519
Total assets
$
14,841,690
$
13,805,236
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing demand accounts
$
3,033,616
$
76,932
2.54
%
$
2,559,238
$
46,976
1.84
%
Money market accounts
3,494,497
127,651
3.65
3,043,794
92,976
3.05
Savings accounts
567,147
1,261
0.22
668,368
975
0.15
Certificates of deposit
1,371,009
58,764
4.29
1,198,551
42,796
3.57
Total interest-bearing deposits
8,466,269
264,608
3.13
7,469,951
183,723
2.46
Subordinated debentures and notes
156,260
10,497
6.72
155,702
9,781
6.28
FHLB advances
30,363
1,691
5.57
54,615
2,752
5.04
Securities sold under agreements to
repurchase
164,959
5,667
3.44
168,745
3,647
2.16
Other borrowings
37,833
492
1.30
71,738
2,424
3.38
Total interest-bearing liabilities
8,855,684
282,955
3.20
7,920,751
202,327
2.55
Noninterest-bearing liabilities:
Demand deposits
4,042,368
4,131,163
Other liabilities
159,463
130,201
Total liabilities
13,057,515
12,182,115
Shareholders' equity
1,784,175
1,623,121
Total liabilities and shareholders'
equity
$
14,841,690
$
13,805,236
Total net interest income
$
576,541
$
570,671
Net interest margin
4.16
%
4.43
%
1 Average balances include nonaccrual
loans. Interest income includes loan fees of $9.6 million and $13.8
million for the years ended December 31, 2024 and December 31,
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 $8.4 million and $8.1 million
for the years ended December 31, 2024 and December 31, 2023,
respectively.
ENTERPRISE FINANCIAL SERVICES
CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited)
(continued)
At or for the quarter ended
($ in thousands)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
LOAN PORTFOLIO
Commercial and industrial
$
4,716,689
$
4,628,488
$
4,619,448
$
4,766,310
$
4,672,559
Commercial real estate
4,974,787
4,915,176
4,856,751
4,804,803
4,803,571
Construction real estate
891,059
896,325
893,672
820,416
760,425
Residential real estate
359,263
355,279
351,934
367,218
372,188
Other
278,557
284,624
278,202
269,745
275,375
Total loans
$
11,220,355
$
11,079,892
$
11,000,007
$
11,028,492
$
10,884,118
DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts
$
4,484,072
$
3,934,245
$
3,928,308
$
3,805,334
$
3,958,743
Interest-bearing demand accounts
3,175,292
3,048,981
2,951,899
2,956,282
2,950,259
Money market and savings accounts
4,117,524
4,121,543
4,039,626
4,006,702
3,994,455
Brokered certificates of deposit
484,588
480,934
494,870
659,005
482,759
Other certificates of deposit
885,016
879,619
867,680
826,378
790,155
Total deposits
$
13,146,492
$
12,465,322
$
12,282,383
$
12,253,701
$
12,176,371
AVERAGE BALANCES
Loans
$
11,100,112
$
10,971,575
$
10,962,488
$
10,927,932
$
10,685,961
Securities
2,748,063
2,503,124
2,396,519
2,400,571
2,276,915
Interest-earning assets
14,323,053
13,877,631
13,684,459
13,596,571
13,383,638
Assets
15,309,577
14,849,455
14,646,381
14,556,119
14,332,804
Deposits
12,958,156
12,546,086
12,344,253
12,180,703
12,163,346
Shareholders’ equity
1,844,509
1,804,369
1,748,240
1,738,698
1,652,882
Tangible common equity1
1,398,427
1,357,362
1,300,305
1,289,776
1,202,872
YIELDS (tax equivalent)
Loans
6.73
%
6.95
%
6.95
%
6.87
%
6.87
%
Securities
3.51
3.40
3.35
3.27
3.20
Interest-earning assets
6.05
6.26
6.28
6.20
6.20
Interest-bearing deposits
2.96
3.22
3.19
3.14
3.03
Deposits
2.00
2.18
2.16
2.13
2.03
Subordinated debentures and notes
6.70
6.86
6.91
6.40
6.30
FHLB advances and other borrowed funds
2.81
3.01
3.52
3.80
3.06
Interest-bearing liabilities
3.02
3.28
3.26
3.22
3.09
Net interest margin
4.13
4.17
4.19
4.13
4.23
1 Refer to Reconciliations of Non-GAAP
Financial Measures table 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)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
ASSET QUALITY
Net charge-offs
$
7,131
$
3,850
$
605
$
5,864
$
28,479
Nonperforming loans
42,687
28,376
39,384
35,642
43,728
Classified assets
193,838
179,883
169,822
185,150
185,389
Nonperforming loans to total loans
0.38
%
0.26
%
0.36
%
0.32
%
0.40
%
Nonperforming assets to total assets
0.30
%
0.22
%
0.33
%
0.30
%
0.34
%
Allowance for credit losses to total
loans
1.23
%
1.26
%
1.27
%
1.23
%
1.24
%
Allowance for credit losses to loans,
excluding guaranteed loans1
1.34
%
1.38
%
1.38
%
1.34
%
1.35
%
Allowance for credit losses to
nonperforming loans
323.2
%
492.6
%
354.1
%
380.2
%
308.2
%
Net charge-offs to average loans -
annualized
0.26
%
0.14
%
0.02
%
0.22
%
1.06
%
WEALTH MANAGEMENT
Trust assets under management
$
2,412,471
$
2,499,807
$
2,367,409
$
2,352,902
$
2,235,073
SHARE DATA
Book value per common share
$
47.37
$
47.33
$
45.08
$
44.24
$
43.94
Tangible book value per common share1
$
37.27
$
37.26
$
35.02
$
34.21
$
33.85
Market value per share
$
56.40
$
51.26
$
40.91
$
40.56
$
44.65
Period end common shares outstanding
36,988
37,184
37,344
37,515
37,416
Average basic common shares
37,118
37,337
37,485
37,490
37,421
Average diluted common shares
37,447
37,483
37,540
37,597
37,554
CAPITAL
Total risk-based capital to risk-weighted
assets2
14.6
%
14.8
%
14.6
%
14.3
%
14.2
%
Tier 1 capital to risk-weighted
assets2
13.1
%
13.2
%
13.0
%
12.8
%
12.7
%
Common equity tier 1 capital to
risk-weighted assets2
11.8
%
11.9
%
11.7
%
11.4
%
11.3
%
Tangible common equity to tangible
assets1
9.05
%
9.50
%
9.18
%
9.01
%
8.96
%
1 Refer to Reconciliations of Non-GAAP
Financial Measures table for a reconciliation of these measures to
GAAP.
2 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.
ENTERPRISE FINANCIAL SERVICES
CORP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Quarter ended
Year ended
($ in thousands)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2023
CORE EFFICIENCY RATIO
Net interest income (GAAP)
$
146,370
$
143,469
$
140,529
$
137,728
$
140,732
$
568,096
$
562,592
Tax equivalent adjustment
2,272
2,086
2,047
2,040
1,915
8,445
8,079
Noninterest income (GAAP)
20,631
21,420
15,494
12,158
25,452
69,703
68,725
Less gain on sale of investment
securities
—
—
—
—
220
—
601
Less gain (loss) on sale of other real
estate owned
(68
)
3,159
—
(2
)
—
3,089
187
Core revenue (non-GAAP)
169,341
163,816
158,070
151,928
167,879
643,155
638,608
Noninterest expense (GAAP)
99,522
98,007
94,017
93,501
92,603
385,047
348,186
Less FDIC special assessment
—
—
—
625
2,412
625
2,412
Less core conversion expense
1,893
1,375
1,250
350
—
4,868
—
Less amortization on intangibles
916
927
944
1,047
1,108
3,834
4,601
Core noninterest expense (non-GAAP)
$
96,713
$
95,705
$
91,823
$
91,479
$
89,083
$
375,720
$
341,173
Core efficiency ratio (non-GAAP)
57.11
%
58.42
%
58.09
%
60.21
%
53.06
%
58.42
%
53.42
%
Quarter ended
(in thousands, except per share data)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
TANGIBLE COMMON EQUITY, TANGIBLE BOOK
VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Shareholders’ equity (GAAP)
$
1,824,002
$
1,832,011
$
1,755,273
$
1,731,725
$
1,716,068
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
8,484
9,400
10,327
11,271
12,318
Tangible common equity (non-GAAP)
$
1,378,366
$
1,385,459
$
1,307,794
$
1,283,302
$
1,266,598
Less net unrealized losses on HTM
securities, after tax
52,881
34,856
52,220
47,822
41,038
Tangible common equity adjusted for
unrealized losses on HTM securities (non-GAAP)
$
1,325,485
$
1,350,603
$
1,255,574
$
1,235,480
$
1,225,560
Common shares outstanding
36,988
37,184
37,344
37,515
37,416
Tangible book value per common share
(non-GAAP)
$
37.27
$
37.26
$
35.02
$
34.21
$
33.85
Total assets
$
15,596,431
$
14,954,125
$
14,615,666
$
14,613,338
$
14,518,590
Less goodwill
365,164
365,164
$
365,164
365,164
365,164
Less intangible assets
8,484
9,400
$
10,327
11,271
12,318
Tangible assets (non-GAAP)
$
15,222,783
$
14,579,561
$
14,240,175
$
14,236,903
$
14,141,108
Tangible common equity to tangible assets
(non-GAAP)
9.05
%
9.50
%
9.18
%
9.01
%
8.96
%
Tangible common equity to tangible assets
adjusted for unrealized losses on HTM securities (non-GAAP)
8.71
%
9.26
%
8.82
%
8.68
%
8.67
%
Quarter ended
Year ended
($ in thousands)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2023
RETURN ON AVERAGE TANGIBLE COMMON
EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED
EARNINGS PER SHARE
Average shareholder’s equity (GAAP)
$
1,844,509
$
1,804,369
$
1,748,240
$
1,738,698
$
1,652,882
$
1,784,175
$
1,623,121
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
8,930
9,855
10,783
11,770
12,858
10,329
14,531
Average tangible common equity
(non-GAAP)
$
1,398,427
$
1,357,362
$
1,300,305
$
1,289,776
$
1,202,872
$
1,336,694
$
1,171,438
Net income (GAAP)
$
48,834
$
50,585
$
45,446
$
40,401
$
44,529
$
185,266
$
194,059
FDIC special assessment (after tax)
—
—
—
470
1,814
470
1,814
Core conversion expense (after tax)
1,424
1,034
940
263
—
3,661
—
Less gain on sale of investment securities
(after tax)
—
—
—
—
165
—
452
Less gain (loss) on sale of other real
estate owned (after tax)
(51
)
2,375
—
(1
)
—
2,323
141
Net income adjusted (non-GAAP)
$
50,309
$
49,244
$
46,386
$
41,135
$
46,178
$
187,074
$
195,280
Less preferred stock dividends
937
938
937
938
937
3,750
3,750
Net income available to common
shareholders adjusted (non-GAAP)
$
49,372
$
48,306
$
45,449
$
40,197
$
45,241
$
183,324
$
191,530
Return on average common equity
(non-GAAP)
10.75
%
11.40
%
10.68
%
9.52
%
10.94
%
10.60
%
12.27
%
Adjusted return on average common equity
(non-GAAP)
11.08
%
11.09
%
10.90
%
9.70
%
11.35
%
10.71
%
12.35
%
ROATCE (non-GAAP)
13.63
%
14.55
%
13.77
%
12.31
%
14.38
%
13.58
%
16.25
%
Adjusted ROATCE (non-GAAP)
14.05
%
14.16
%
14.06
%
12.53
%
14.92
%
13.71
%
16.35
%
Average assets
$
15,309,577
$
14,849,455
$
14,646,381
$
14,556,119
$
14,332,804
$
14,841,690
$
13,805,236
Return on average assets (GAAP)
1.27
%
1.36
%
1.25
%
1.12
%
1.23
%
1.25
%
1.41
%
Adjusted return on average assets
(non-GAAP)
1.31
%
1.32
%
1.27
%
1.14
%
1.28
%
1.26
%
1.41
%
Average diluted common shares
37,447
37,483
37,540
37,597
37,554
37,567
37,507
Diluted earnings per share (GAAP)
$
1.28
$
1.32
$
1.19
$
1.05
$
1.16
$
4.83
$
5.07
Adjusted diluted earnings per share
(non-GAAP)
$
1.32
$
1.29
$
1.21
$
1.07
$
1.20
$
4.88
$
5.11
Quarter ended
Year ended
($ in thousands)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
Dec 31,
2024
Dec 31,
2023
CALCULATION OF PRE-PROVISION NET
REVENUE (PPNR)
Net interest income
$
146,370
$
143,469
$
140,529
$
137,728
$
140,732
$
568,096
$
562,592
Noninterest income
20,631
21,420
15,494
12,158
25,452
69,703
68,725
FDIC special assessment
—
—
—
625
2,412
625
2,412
Core conversion expense
1,893
1,375
1,250
350
—
4,868
—
Less gain on sale of investment
securities
—
—
—
—
220
—
601
Less gain (loss) on sale of other real
estate owned
(68
)
3,159
—
(2
)
—
3,089
187
Less noninterest expense
99,522
98,007
94,017
93,501
92,603
385,047
348,186
PPNR (non-GAAP)
$
69,440
$
65,098
$
63,256
$
57,362
$
75,773
$
255,156
$
284,755
At
($ in thousands)
Dec 31,
2024
Sep 30,
2024
Jun 30,
2024
Mar 31,
2024
Dec 31,
2023
ALLOWANCE TO LOANS RATIO EXCLUDING
GUARANTEED LOANS
Loans
$
11,220,355
$
11,079,892
$
11,000,007
$
11,028,492
$
10,884,118
Less guaranteed loans
947,665
928,272
923,794
924,633
932,118
Adjusted loans (non-GAAP)
$
10,272,690
$
10,151,620
$
10,076,213
$
10,103,859
$
9,952,000
Allowance for credit losses
$
137,950
$
139,778
$
139,464
$
135,498
$
134,771
Allowance for credit losses/loans
(GAAP)
1.23
%
1.26
%
1.27
%
1.23
%
1.24
%
Allowance for credit losses/adjusted loans
(non-GAAP)
1.34
%
1.38
%
1.38
%
1.34
%
1.35
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250127330585/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
Grafico Azioni Enterprise Financial Ser... (NASDAQ:EFSC)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Enterprise Financial Ser... (NASDAQ:EFSC)
Storico
Da Gen 2024 a Gen 2025
