0001025835FALSE150 N. Meramec AvenueSt. LouisMissouri6310500010258352024-07-222024-07-220001025835us-gaap:CommonStockMember2024-07-222024-07-220001025835efsc:DepositarySharesMember2024-07-222024-07-22

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) 
July 22, 2024
ENTERPRISE FINANCIAL SERVICES CORP
(Exact name of registrant as specified in its charter)
Delaware 
001-15373 
43-1706259 
(State or Other Jurisdiction
of Incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
150 N. Meramec Avenue, St. Louis, Missouri
(Address of principal executive offices)
63105
(Zip Code)

Registrant's telephone number, including area code
(314) 725-5500

Not applicable 
(Former name or former address, if changed since last report) 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 ☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 ☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareEFSCNasdaq Global Select Market
Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series AEFSCPNasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02 Results of Operations and Financial Condition.

On July 22, 2024, Enterprise Financial Services Corp (the "Company" or "EFSC") issued a press release announcing financial information for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

On July 23, 2024, at 10:00 a.m. Central time, the Company intends to hold a webcast to present information on its results of operations for the quarter ended June 30, 2024. The slide presentation which will accompany the webcast is furnished as Exhibit 99.2 and is incorporated herein by reference.

The press release, slide presentation and information contained therein and in this Item 2.02 shall not be deemed “filed” with the Securities and Exchange Commission.

Item 9.01 Financial Statements and Exhibits.

(d)     Exhibits.

Exhibit     
Number    Description

104        The cover page of this Current Report on Form 8-K, formatted in Inline XBRL.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ENTERPRISE FINANCIAL SERVICES CORP
Date:July 22, 2024By:/s/ Troy R. Dumlao
Troy R. Dumlao
Executive Vice President and Chief Accounting Officer





EXHIBIT 99.1
enterprisefinancialservicesa.jpg
ENTERPRISE FINANCIAL REPORTS SECOND QUARTER 2024 RESULTS

Second Quarter Results
•Net income of $45.4 million, or $1.19 per diluted common share, compared to $1.05 in the linked quarter and $1.29 in the prior year quarter
•Net interest margin of 4.19%, quarterly increase of 6 basis points
•Net interest income of $140.5 million, quarterly increase of $2.8 million
•Total loans of $11.0 billion, quarterly decrease of $28.5 million
•Total deposits of $12.3 billion, quarterly increase of $28.7 million
•Return on Average Assets (“ROAA”) of 1.25%, compared to 1.12% and 1.44% in the linked and prior year quarters, respectively
•Return on Average Tangible Common Equity (“ROATCE”)1 of 13.77%, compared to 12.31% and 16.53% in the linked and prior year quarters, respectively
•Tangible common equity to tangible assets1 of 9.18%, an increase of 17 basis points and 53 basis points from the linked and prior year quarters, respectively
•Tangible book value per share1 of $35.02, annualized increase of 10%
•Repurchased 225,135 shares and increased quarterly dividend $0.01 to $0.27 per common share for the third quarter 2024

St. Louis, Mo. July 22, 2024 – 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 second quarter earnings, “I was very pleased with our second quarter results, including our strong asset quality and the growth in operating revenue, customer deposits, and tangible common equity. We had a return on average assets of 1.25% and a return on tangible common equity of 13.8%. These returns increased our tangible book value per share by 10% on an annualized basis this quarter. Over the past 10 years, we have produced a compounded annual growth rate of 10% on our tangible book value per share. With the strength of our balance sheet and our solid return profile, we opportunistically repurchased over $8 million of common stock and announced another increase to our quarterly dividend.”

Highlights

•Earnings - Net income in the second quarter 2024 was $45.4 million, an increase of $5.0 million and a decrease of $3.7 million compared to the linked and prior year quarters, respectively. Earnings per share (“EPS”) was $1.19 per diluted common share for the second quarter 2024, compared to $1.05 and $1.29 per diluted common share for the linked and prior year quarters, respectively. Adjusted diluted earnings per share1 was $1.21 for the second quarter 2024, compared to $1.07 for the linked quarter.

•Pre-provision net revenue (“PPNR”)1 - PPNR of $63.3 million in the second quarter 2024 increased $5.9 million and decreased $5.7 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to higher noninterest income, primarily tax credit income, and higher net interest income that benefited from higher average loan balances and expanding yields on earning assets. These increases were partially offset by an increase in deposit interest expense. The decrease compared to the prior year quarter was primarily due to the higher interest rate environment that increased
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.


deposit interest expense and the cost of variable deposit services costs, which are influenced by current market rates.

•Net interest income and net interest margin (“NIM”) - Net interest income of $140.5 million for the second quarter 2024 increased $2.8 million and decreased $0.2 million from the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income for the second quarter 2024 increased due to an expanded net interest spread and higher average loan and interest-earning asset balances. NIM was 4.19% for the second quarter 2024, compared to 4.13% and 4.49% for the linked and prior year quarters, respectively. The total cost of deposits of 2.16% for the second quarter 2024 increased 3 basis points and 70 basis points from the linked and prior year quarters, respectively.

•Noninterest income - Noninterest income of $15.5 million for the second quarter 2024 increased $3.3 million and $1.2 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 on higher activity that was partially offset by an increase in market interest rates that decreased the fair value of certain tax credits.

•Noninterest expense - Noninterest expense of $94.0 million for the second quarter 2024 increased $0.5 million and $8.1 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily driven by higher variable deposit servicing costs and expenses related to the core system conversion, partially offset by a decrease in employee compensation and the FDIC special assessment. The increase from the prior year quarter was primarily due to variable deposit servicing costs and employee compensation.

•Loans - Loans totaled $11.0 billion at June 30, 2024, a decrease of $28.5 million from the linked quarter and an increase of $487.4 million from the prior year quarter. Average loans totaled $11.0 billion for the quarter ended June 30, 2024, compared to $10.9 billion and $10.3 billion for the linked and prior year quarters, respectively.

•Asset quality - The allowance for credit losses to total loans was 1.27% at June 30, 2024, compared to 1.23% at March 31, 2024 and 1.34% at June 30, 2023. The ratio of nonperforming assets to total assets was 0.33% at June 30, 2024, compared to 0.30% and 0.12% at March 31, 2024 and June 30, 2023, respectively. The provision for credit losses recorded in the second quarter 2024 was $4.8 million, compared to $5.8 million and $6.3 million for the linked and prior year quarters, respectively.

•Deposits - Total deposits increased $28.7 million from March 31, 2024 to $12.3 billion at June 30, 2024, despite a decrease of $164.1 million in brokered certificates of deposit. Excluding brokered certificates of deposits, deposits increased $192.8 million. Average deposits were $12.3 billion, $12.2 billion and $11.4 billion for the current, linked and prior year quarters, respectively. At June 30, 2024, noninterest-bearing deposit accounts totaled $3.9 billion, or 32.0% of total deposits, and the loan to deposit ratio was 89.6%.

•Liquidity - The total available on- and off-balance-sheet liquidity was approximately $5.6 billion at June 30, 2024. On-balance-sheet liquidity consisted of cash of $392.8 million and $1.2 billion in unpledged investment securities at June 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.

2


•Capital - Total shareholders’ equity was $1.8 billion and the tangible common equity to tangible assets ratio2 was 9.18% at June 30, 2024, compared to 9.01% at March 31, 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 13.5% at June 30, 2024. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.7% and 14.6%, respectively, at June 30, 2024.

The Company’s board of directors approved a quarterly dividend of $0.27 per common share, payable on September 30, 2024 to shareholders of record as of September 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) June 15, 2024 to (but excluding) September 15, 2024. The dividend will be payable on September 15, 2024 and will be paid on September 16, 2024 to holders of record of Series A Preferred Stock as of August 30, 2024.
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.

3


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
June 30, 2024March 31, 2024June 30, 2023
($ in thousands)Average
Balance		Interest
Income/
Expense		Average Yield/ RateAverage
Balance		Interest
Income/
Expense		Average Yield/ RateAverage
Balance		Interest
Income/
Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Loans1, 2
$10,962,488 $189,346 6.95 %$10,927,932 $186,703 6.87 %$10,284,873 $170,314 6.64 %
Securities2
2,396,519 19,956 3.35 2,400,571 19,491 3.27 2,297,995 17,550 3.06 
Interest-earning deposits325,452 4,389 5.42 268,068 3,569 5.35 173,785 2,095 4.84 
Total interest-earning assets13,684,459 213,691 6.28 13,596,571 209,763 6.20 12,756,653 189,959 5.97 
Noninterest-earning assets961,922 959,548 915,332 
Total assets$14,646,381 $14,556,119 $13,671,985 
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts$2,950,827 $18,801 2.56 %$2,924,276 $18,612 2.56 %$2,509,805 $10,120 1.62 %
Money market accounts3,434,712 31,926 3.74 3,401,802 31,357 3.71 2,920,079 20,499 2.82 
Savings accounts573,115 335 0.24 587,113 303 0.21 686,973 227 0.13 
Certificates of deposit1,412,263 15,312 4.36 1,341,990 14,201 4.26 1,219,500 10,526 3.46 
Total interest-bearing deposits8,370,917 66,374 3.19 8,255,181 64,473 3.14 7,336,357 41,372 2.26 
Subordinated debentures and notes156,188 2,684 6.91 156,046 2,484 6.40 155,632 2,431 6.27 
FHLB advances40,308 561 5.60 73,791 1,029 5.61 98,912 1,279 5.19 
Securities sold under agreements to repurchase158,969 1,401 3.54 204,898 1,804 3.54 162,606 704 1.74 
Other borrowings36,203 95 1.06 42,736 205 1.93 133,770 1,419 4.25 
Total interest-bearing liabilities8,762,585 71,115 3.26 8,732,652 69,995 3.22 7,887,277 47,205 2.40 
Noninterest-bearing liabilities:
Demand deposits3,973,336 3,925,522 4,051,456 
Other liabilities162,220 159,247 111,915 
Total liabilities12,898,141 12,817,421 12,050,648 
Shareholders' equity1,748,240 1,738,698 1,621,337 
Total liabilities and shareholders' equity$14,646,381 $14,556,119 $13,671,985 
Total net interest income$142,576 $139,768 $142,754 
Net interest margin4.19 %4.13 %4.49 %
1 Average balances include nonaccrual loans. Interest income includes loan fees of $2.2 million, $2.4 million, and $3.7 million for the three months ended June 30, 2024, March 31, 2024, and June 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, $2.0 million, and $2.1 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively.



4

Net interest income of $140.5 million for the second quarter 2024 increased $2.8 million and decreased $0.2 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $142.6 million, $139.8 million and $142.8 million for the current, linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to an expansion of the loan portfolio and securities yields, and to a lesser extent, an increase in average earning assets. This was partially offset by an increase in both the cost and average balance of interest-bearing deposits. The decrease from the prior year quarter reflects higher interest expense on the deposit portfolio and continued remixing into higher cost deposit categories.

Interest income increased $3.9 million during the second quarter 2024. Interest on loans benefited from a $34.6 million increase in average loan balances compared to the linked quarter, as well as an 8 basis point increase in yield. The average interest rate of new loan originations in the second quarter 2024 was 8.07%, an increase of 23 basis points from the linked quarter. Interest on cash accounts increased $0.8 million from the linked quarter due to a $57.4 million increase in average balances, and interest on securities increased $0.5 million due to an 8 basis point increase in yield.

Interest expense increased $1.1 million in the second quarter 2024 primarily due to an increase in interest expense on certificates of deposit that includes brokered amounts. Average certificates of deposit increased $70.3 million and the cost increased 10 basis points in the second quarter 2024. The average cost of interest-bearing deposits was 3.19%, an increase of 5 basis points compared to the linked quarter. The total cost of deposits, including noninterest-bearing demand accounts, was 2.16% during the second quarter 2024, compared to 2.13% in the linked quarter. While the total cost of deposits increased over the linked quarter, the monthly cost of total deposits has been stable since March 2024.

NIM, on a tax equivalent basis, was 4.19% in the second quarter 2024, an increase of 6 basis points from the linked quarter and a decrease of 30 basis points from the prior year quarter. For the month of June 2024, the loan portfolio yield was 6.92% and the cost of total deposits was 2.17%.

Investments

At
June 30, 2024March 31, 2024June 30, 2023
($ in thousands)Carrying ValueNet Unrealized LossCarrying ValueNet Unrealized LossCarrying ValueNet Unrealized Loss
Available-for-sale (AFS)$1,615,930 $(172,734)$1,611,883 $(165,586)$1,550,375 $(179,857)
Held-to-maturity (HTM)772,648 (69,442)758,017 (63,593)723,959 (71,673)
Total$2,388,578 $(242,176)$2,369,900 $(229,179)$2,274,334 $(251,530)

Investment securities totaled $2.4 billion at June 30, 2024, an increase of $18.7 million from the linked quarter. Investment purchases in the second quarter 2024 had a weighted average, tax equivalent yield of 5.43%. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities3 was 8.82% at June 30, 2024, compared to 8.68% at March 31, 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.


5

Loans
The following table presents total loans for the most recent five quarters:
At
($ in thousands)June 30,
2024		March 31,
2024		December 31, 2023September 30, 2023June 30,
2023
C&I$2,107,097 $2,263,817 $2,186,203 $2,020,303 $2,029,370 
CRE investor owned2,308,926 2,280,990 2,291,660 2,260,220 2,290,701 
CRE owner occupied1,313,742 1,279,929 1,262,264 1,255,885 1,208,675 
SBA loans*1,269,145 1,274,780 1,281,632 1,309,497 1,327,667 
Sponsor finance*865,883 865,180 872,264 888,000 879,491 
Life insurance premium financing*996,154 1,003,597 956,162 928,486 912,274 
Tax credits*738,249 718,383 734,594 683,580 609,137 
Residential real estate339,889 354,615 359,957 364,618 354,588 
Construction and land development791,780 726,742 670,567 639,555 599,375 
Other269,142 260,459 268,815 266,676 301,345 
Total loans$11,000,007 $11,028,492 $10,884,118 $10,616,820 $10,512,623 
Quarterly loan yield6.95 %6.87 %6.87 %6.80 %6.64 %
Variable interest rate loans to total loans61 %61 %61 %61 %62 %
*Specialty loan category

Loans totaled $11.0 billion at June 30, 2024, a decrease of $28.5 million compared to the linked quarter. During the current quarter, C&I loans and residential real estate loans decreased $156.7 million and $14.7 million, respectively, while construction loans and CRE loans increased $65.0 million and $61.7 million, respectively. Loan origination activity and advances on lines of credit were strong during the second quarter 2024, but were offset by paydowns and maturities in the current quarter that were at the highest quarterly level in the past five quarters. Average line utilization was approximately 46% for the quarter ended June 30, 2024, compared to 44% and 45% 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)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Nonperforming loans*$39,384 $35,642 $43,728 $48,932 $16,112 
Other 8,746 8,466 5,736 6,933 — 
Nonperforming assets*$48,130 $44,108 $49,464 $55,865 $16,112 
Nonperforming loans to total loans0.36 %0.32 %0.40 %0.46 %0.15 %
Nonperforming assets to total assets0.33 %0.30 %0.34 %0.40 %0.12 %
Allowance for credit losses to total loans1.27 %1.23 %1.24 %1.34 %1.34 %
Quarterly net charge-offs$605 $5,864 $28,479 $6,856 $2,973 
*Guaranteed balances excluded$12,933 $9,630 $10,682 $5,974 $6,666 

Nonperforming assets increased $4.0 million during the second quarter 2024 and increased $32.0 million from the prior year quarter. The increase in nonperforming assets in the current quarter was primarily related to the addition of an agricultural relationship that moved into nonperforming status during the period, partially offset by a reduction from charge-offs and repayments. Included in nonperforming loans is $1.3 million of loans that are 90 days past due and accruing interest. The Company anticipates full repayment of these loans. The increase in nonperforming assets


6

from the prior year quarter was primarily due to a $27.1 million increase in real estate loans and an $8.7 million increase in OREO and other repossessed assets, partially offset by a $2.9 million decrease in C&I loans. Annualized net charge-offs totaled 2 basis points of average loans in the second quarter 2024, compared to 22 basis points in the linked quarter and 12 basis point in the prior year quarter.

The provision for credit losses totaled $4.8 million in the second quarter 2024, compared to $5.8 million and $6.3 million in the linked and prior year quarters, respectively. The provision for credit losses in the second quarter 2024 was primarily related to an increase in reserves on individually evaluated loans 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)June 30,
2024		March 31,
2024		December 31,
2023		September 30,
2023		June 30,
2023
Noninterest-bearing demand accounts$3,928,308 $3,805,334 $3,958,743 $3,852,486 $3,880,561 
Interest-bearing demand accounts2,951,899 2,956,282 2,950,259 2,749,598 2,629,339 
Money market and savings accounts4,039,626 4,006,702 3,994,455 3,837,145 3,577,856 
Brokered certificates of deposit494,870 659,005 482,759 695,551 893,808 
Other certificates of deposit867,680 826,378 790,155 775,127 638,296 
Total deposit portfolio$12,282,383 $12,253,701 $12,176,371 $11,909,907 $11,619,860 
Noninterest-bearing deposits to total deposits32.0 %31.1 %32.5 %32.3 %33.4 %
Quarterly cost of deposits2.16 %2.13 %2.03 %1.84 %1.46 %

Total deposits at June 30, 2024 were $12.3 billion, an increase of $28.7 million and $662.5 million from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, total deposits increased $192.8 million and $1.1 billion, 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 June 30, 2024, compared to $1.1 billion at March 31, 2024.

Total estimated insured deposits4, which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled $8.7 billion, or 71% of total deposits, at both June 30, 2024 and March 31, 2024.

Noninterest Income
The following table presents a comparative summary of the major components of noninterest income for the periods indicated:
Linked quarter comparisonPrior year comparison
Quarter ended Quarter ended
($ in thousands)June 30,
2024		March 31, 2024Increase (decrease)June 30,
2023		Increase (decrease)
Deposit service charges$4,542 $4,423 $119 3 %$3,910 $632 16 %
Wealth management revenue2,590 2,544 46 2 %2,472 118 5 %
Card services revenue2,497 2,412 85 4 %2,464 33 1 %
Tax credit income (loss)1,874 (2,190)4,064 186 %368 1,506 409 %
Other income3,991 4,969 (978)(20)%5,076 (1,085)(21)%
Total noninterest income$15,494 $12,158 $3,336 27 %$14,290 $1,204 8 %

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


7

Total noninterest income was $15.5 million for the second quarter 2024, an increase of $3.3 million from the linked quarter and an increase of $1.2 million from the prior year quarter. The increase from the linked and prior year quarters was primarily due to 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 following table presents a comparative summary of the major components of other income for the periods indicated:
Linked quarter comparisonPrior year comparison
Quarter endedQuarter ended
($ in thousands)June 30,
2024		March 31, 2024Increase (decrease)June 30,
2023		Increase (decrease)
Gain on SBA loan sales$— $1,415 $(1,415)(100)%$— $— — %
BOLI855 864 (9)(1)%797 58 7 %
Community development investments381 585 (204)(35)%2,077 (1,696)(82)%
Private equity fund distributions411 162 249 154 %371 40 11 %
Servicing fees594 287 307 107 %407 187 46 %
Swap fees217 45 172 382 %173 44 25 %
Miscellaneous income1,533 1,611 (78)(5)%1,251 282 23 %
Total other income$3,991 $4,969 $(978)(20)%$5,076 $(1,085)(21)%

The decrease in other income from the linked quarter was primarily driven by gains on the sale of SBA loans that were recognized in the linked quarter, while the decrease from the prior year quarter was due to lower 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.

Noninterest Expense
The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:
Linked quarter comparisonPrior year comparison
Quarter ended Quarter ended
($ in thousands)June 30,
2024		March 31,
2024		Increase (decrease)June 30,
2023		Increase (decrease)
Employee compensation and benefits$44,524 $45,262 $(738)(2)%$41,641 $2,883 7 %
Deposit costs21,706 20,277 1,429 7 %16,980 4,726 28 %
Occupancy4,197 4,326 (129)(3)%3,954 243 6 %
FDIC special assessment— 625 (625)(100)%— — — %
Core conversion expense1,250 350 900 257 %— 1,250 100 %
Other expense22,340 22,661 (321)(1)%23,381 (1,041)(4)%
Total noninterest expense$94,017 $93,501 $516 1 %$85,956 $8,061 9 %
Employee compensation and benefits decreased $0.7 million from the linked quarter primarily due to employer payroll taxes that are seasonally higher in the first quarter each year and a decline in self-insured medical claims. 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 $1.4 million from the linked quarter primarily due to the expiration of unused allowances that reduced expense in the first quarter and growth in deposits. Expenses related to the core system conversion increased $0.9 million from the linked quarter due to the continued progress on the project.

8


The increase in noninterest expense of $8.1 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 second quarter 2024, the core efficiency ratio5 was 58.1%, compared to 60.2% for the linked quarter and 54.0% for the prior year quarter.

Income Taxes
The effective tax rate was 20.5%, compared to 20.2% and 21.6% in the linked and prior year quarters, respectively. The decrease in the effective tax rate from the prior year quarter 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)June 30, 2024*March 31, 2024December 31, 2023September 30, 2023June 30,
2023
Shareholders’ equity$1,755,273 $1,731,725 $1,716,068 $1,611,880 $1,618,233 
Total risk-based capital to risk-weighted assets14.6 %14.3 %14.2 %14.1 %14.1 %
Tier 1 capital to risk weighted assets13.0 %12.8 %12.7 %12.6 %12.5 %
Common equity tier 1 capital to risk-weighted assets11.7 %11.4 %11.3 %11.2 %11.1 %
Leverage ratio11.1 %11.0 %11.0 %10.9 %11.0 %
Tangible common equity to tangible assets9.18 %9.01 %8.96 %8.51 %8.65 %
                
*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 June 30, 2024, an increase of $23.5 million from the linked quarter. Tangible common book value per share was $35.02 at June 30, 2024, compared to $34.21 and $31.23 at March 31, 2024 and June 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 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 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
5 Core efficiency ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.


9

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 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, July 23, 2024. During the call, management will review the second 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/EFSC2Q2024EarningsCallRegistration. 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 $14.6 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.

10

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.

For more information contact
Investor Relations: Keene Turner, Senior Executive Vice President and CFO (314) 512-7233
Media: Steve Richardson, Senior Vice President, Corporate Communications (314) 995-5695
11

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
Quarter endedSix months ended
(in thousands, except per share data)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
EARNINGS SUMMARY
Net interest income$140,529 $137,728 $140,732 $141,639 $140,692 $278,257 $280,221 
Provision for credit losses4,819 5,756 18,053 8,030 6,339 10,575 10,522 
Noninterest income15,494 12,158 25,452 12,085 14,290 27,652 31,188 
Noninterest expense94,017 93,501 92,603 88,644 85,956 187,518 166,939 
Income before income tax expense57,187 50,629 55,528 57,050 62,687 107,816 133,948 
Income tax expense11,741 10,228 10,999 12,385 13,560 21,969 29,083 
Net income45,446 40,401 44,529 44,665 49,127 85,847 104,865 
Preferred stock dividends937 938 937 938 937 1,875 1,875 
Net income available to common shareholders$44,509 $39,463 $43,592 $43,727 $48,190 $83,972 $102,990 
Diluted earnings per common share$1.19 $1.05 $1.16 $1.17 $1.29 $2.24 $2.75 
Adjusted diluted earnings per common share1
$1.21 $1.07 $1.21 $1.17 $1.29 $2.28 $2.75 
Return on average assets1.25 %1.12 %1.23 %1.26 %1.44 %1.18 %1.58 %
Adjusted return on average assets1
1.27 %1.14 %1.28 %1.26 %1.44 %1.21 %1.58 %
Return on average common equity1
10.68 %9.52 %10.94 %11.00 %12.48 %10.10 %13.64 %
Adjusted return on average common equity1
10.90 %9.70 %11.40 %11.00 %12.48 %10.30 %13.64 %
ROATCE1
13.77 %12.31 %14.38 %14.49 %16.53 %13.04 %18.18 %
Adjusted ROATCE1
14.06 %12.53 %14.98 %14.49 %16.53 %13.30 %18.18 %
Net interest margin (tax equivalent)4.19 %4.13 %4.23 %4.33 %4.49 %4.16 %4.60 %
Efficiency ratio60.26 %62.38 %55.72 %57.66 %55.46 %61.30 %53.61 %
Core efficiency ratio1
58.09 %60.21 %53.06 %56.18 %54.04 %59.13 %52.25 %
Assets$14,615,666 $14,613,338 $14,518,590 $14,025,042 $13,871,154 
Average assets$14,646,381 $14,556,119 $14,332,804 $14,068,860 $13,671,985 $14,601,250 $13,403,084 
Period end common shares outstanding37,344 37,515 37,416 37,385 37,359 
Dividends per common share$0.26 $0.25 $0.25 $0.25 $0.25 $0.51 $0.50 
Tangible book value per common share1
$35.02 $34.21 $33.85 $31.06 $31.23 
Tangible common equity to tangible assets1
9.18 %9.01 %8.96 %8.51 %8.65 %
Total risk-based capital to risk-weighted assets2
14.6 %14.3 %14.2 %14.1 %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.


12

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
Quarter endedSix months ended
(in thousands, except per share data)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
INCOME STATEMENTS
NET INTEREST INCOME
Interest income$211,644 $207,723 $207,083 $200,906 $187,897 $419,367 $356,930 
Interest expense71,115 69,995 66,351 59,267 47,205 141,110 76,709 
Net interest income140,529 137,728 140,732 141,639 140,692 278,257 280,221 
Provision for credit losses4,819 5,756 18,053 8,030 6,339 10,575 10,522 
Net interest income after provision for credit losses135,710 131,972 122,679 133,609 134,353 267,682 269,699 
NONINTEREST INCOME
Deposit service charges4,542 4,423 4,334 4,187 3,910 8,965 8,038 
Wealth management revenue2,590 2,544 2,428 2,614 2,472 5,134 4,988 
Card services revenue2,497 2,412 2,666 2,560 2,464 4,909 4,802 
Tax credit income (loss)1,874 (2,190)9,688 (2,673)368 (316)2,181 
Other income3,991 4,969 6,336 5,397 5,076 8,960 11,179 
Total noninterest income15,494 12,158 25,452 12,085 14,290 27,652 31,188 
NONINTEREST EXPENSE
Employee compensation and benefits44,524 45,262 39,651 40,771 41,641 89,786 84,144 
Deposit costs21,706 20,277 21,606 20,987 16,980 41,983 29,700 
Occupancy4,197 4,326 4,313 4,198 3,954 8,523 8,015 
FDIC special assessment— 625 2,412 — — 625 — 
Core conversion expense1,250 350 — — — 1,600 — 
Other expense22,340 22,661 24,621 22,688 23,381 45,001 45,080 
Total noninterest expense94,017 93,501 92,603 88,644 85,956 187,518 166,939 
Income before income tax expense57,187 50,629 55,528 57,050 62,687 107,816 133,948 
Income tax expense11,741 10,228 10,999 12,385 13,560 21,969 29,083 
Net income $45,446 $40,401 $44,529 $44,665 $49,127 $85,847 $104,865 
Preferred stock dividends937 938 937 938 937 1,875 1,875 
Net income available to common shareholders$44,509 $39,463 $43,592 $43,727 $48,190 $83,972 $102,990 
Basic earnings per common share$1.19 $1.05 $1.16 $1.17 $1.29 $2.24 $2.76 
Diluted earnings per common share$1.19 $1.05 $1.16 $1.17 $1.29 $2.24 $2.75 

13

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
    
At
($ in thousands)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023
BALANCE SHEET
ASSETS
Cash and due from banks$176,698 $157,697 $193,275 $190,806 $202,702 
Interest-earning deposits219,342 215,951 243,610 184,245 125,328 
Debt and equity investments2,460,549 2,443,977 2,434,902 2,279,578 2,340,821 
Loans held for sale606 610 359 212 551 
Loans11,000,007 11,028,492 10,884,118 10,616,820 10,512,623 
Allowance for credit losses(139,464)(135,498)(134,771)(142,133)(141,319)
Total loans, net10,860,543 10,892,994 10,749,347 10,474,687 10,371,304 
Fixed assets, net44,831 44,382 42,681 41,268 41,988 
Goodwill365,164 365,164 365,164 365,164 365,164 
Intangible assets, net10,327 11,271 12,318 13,425 14,544 
Other assets477,606 481,292 476,934 475,657 408,752 
Total assets$14,615,666 $14,613,338 $14,518,590 $14,025,042 $13,871,154 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits$3,928,308 $3,805,334 $3,958,743 $3,852,486 $3,880,561 
Interest-bearing deposits8,354,075 8,448,367 8,217,628 8,057,421 7,739,299 
Total deposits12,282,383 12,253,701 12,176,371 11,909,907 11,619,860 
Subordinated debentures and notes156,265 156,124 155,984 155,844 155,706 
FHLB advances78,000 125,000 — — 150,000 
Other borrowings178,269 195,246 297,829 182,372 199,390 
Other liabilities165,476 151,542 172,338 165,039 127,965 
Total liabilities12,860,393 12,881,613 12,802,522 12,413,162 12,252,921 
Shareholders’ equity:
Preferred stock71,988 71,988 71,988 71,988 71,988 
Common stock373 375 374 374 374 
Additional paid-in capital994,116 995,969 995,208 992,044 988,355 
Retained earnings810,935 778,784 749,513 715,303 680,981 
Accumulated other comprehensive loss(122,139)(115,391)(101,015)(167,829)(123,465)
Total shareholders’ equity1,755,273 1,731,725 1,716,068 1,611,880 1,618,233 
Total liabilities and shareholders’ equity$14,615,666 $14,613,338 $14,518,590 $14,025,042 $13,871,154 


14

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

Six months ended
June 30, 2024June 30, 2023
($ in thousands)Average
Balance		Interest
Income/
Expense		Average Yield/ RateAverage
Balance		Interest
Income/
Expense		Average Yield/ Rate
AVERAGE BALANCE SHEET
ASSETS
Interest-earning assets:
Loans1, 2
$10,945,211 $376,049 6.91%$10,041,312 $323,076 6.49%
Securities2
2,398,545 39,447 3.312,293,249 34,667 3.05
Interest-earning deposits296,759 7,958 5.39140,206 3,290 4.73
Total interest-earning assets13,640,515 423,454 6.2412,474,767 361,033 5.84
Noninterest-earning assets960,735 928,317 
Total assets$14,601,250 $13,403,084 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing demand accounts$2,937,551 $37,413 2.56%$2,356,708 $16,027 1.37%
Money market accounts3,418,257 63,283 3.722,873,715 35,970 2.52
Savings accounts580,115 637 0.22709,490 457 0.13
Certificates of deposit1,377,126 29,514 4.31946,527 13,579 2.89
Total interest-bearing deposits8,313,049 130,847 3.176,886,440 66,033 1.93
Subordinated debentures and notes156,117 5,168 6.66155,565 4,840 6.27
FHLB advances57,049 1,590 5.60104,887 2,611 5.02
Securities sold under agreements to repurchase181,933 3,205 3.54188,958 1,453 1.55
Other borrowings39,470 300 1.5394,048 1,772 3.80
Total interest-bearing liabilities8,747,618 141,110 3.247,429,898 76,709 2.08
Noninterest-bearing liabilities:
Demand deposits3,949,429 4,265,521 
Other liabilities160,734 112,625 
Total liabilities12,857,781 11,808,044 
Shareholders' equity1,743,469 1,595,040 
Total liabilities and shareholders' equity$14,601,250 $13,403,084 
Total net interest income$282,344 $284,324 
Net interest margin4.16%4.60%
1 Average balances include nonaccrual loans. Interest income includes loan fees of $4.6 million and $7.4 million for the six months ended June 30, 2024 and June 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 $4.1 million for both the six months ended June 30, 2024 and June 30, 2023, respectively.



15

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
At or for the quarter ended
($ in thousands)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023
LOAN PORTFOLIO
Commercial and industrial$4,619,448 $4,766,310 $4,672,559 $4,448,535 $4,360,862 
Commercial real estate4,856,751 4,804,803 4,803,571 4,794,355 4,802,293 
Construction real estate893,672 820,416 760,425 723,796 671,573 
Residential real estate351,934 367,218 372,188 376,120 368,867 
Other278,202 269,745 275,375 274,014 309,028 
Total loans$11,000,007 $11,028,492 $10,884,118 $10,616,820 $10,512,623 
DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts$3,928,308 $3,805,334 $3,958,743 $3,852,486 $3,880,561 
Interest-bearing demand accounts2,951,899 2,956,282 2,950,259 2,749,598 2,629,339 
Money market and savings accounts4,039,626 4,006,702 3,994,455 3,837,145 3,577,856 
Brokered certificates of deposit494,870 659,005 482,759 695,551 893,808 
Other certificates of deposit867,680 826,378 790,155 775,127 638,296 
Total deposits$12,282,383 $12,253,701 $12,176,371 $11,909,907 $11,619,860 
AVERAGE BALANCES
Loans$10,962,488 $10,927,932 $10,685,961 $10,521,966 $10,284,873 
Securities2,396,519 2,400,571 2,276,915 2,302,850 2,297,995 
Interest-earning assets13,684,459 13,596,571 13,383,638 13,160,587 12,756,653 
Assets14,646,381 14,556,119 14,332,804 14,068,860 13,671,985 
Deposits12,344,253 12,180,703 12,163,346 11,922,534 11,387,813 
Shareholders’ equity1,748,240 1,738,698 1,652,882 1,648,605 1,621,337 
Tangible common equity1
1,300,305 1,289,776 1,202,872 1,197,486 1,169,091 
YIELDS (tax equivalent)
Loans6.95 %6.87 %6.87 %6.80 %6.64 %
Securities3.35 3.27 3.20 3.11 3.06 
Interest-earning assets6.28 6.20 6.20 6.12 5.97 
Interest-bearing deposits3.19 3.14 3.03 2.77 2.26 
Deposits2.16 2.13 2.03 1.84 1.46 
Subordinated debentures and notes6.91 6.40 6.30 6.28 6.27 
FHLB advances and other borrowed funds3.52 3.80 3.06 2.76 3.45 
Interest-bearing liabilities3.26 3.22 3.09 2.84 2.40 
Net interest margin4.19 4.13 4.23 4.33 4.49 
1Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.


16

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
Quarter ended
(in thousands, except per share data)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023
ASSET QUALITY
Net charge-offs$605 $5,864 $28,479 $6,856 $2,973 
Nonperforming loans39,384 35,642 43,728 48,932 16,112 
Classified assets169,822 185,150 185,389 184,393 108,065 
Nonperforming loans to total loans0.36 %0.32 %0.40 %0.46 %0.15 %
Nonperforming assets to total assets0.33 %0.30 %0.34 %0.40 %0.12 %
Allowance for credit losses to total loans1.27 %1.23 %1.24 %1.34 %1.34 %
Allowance for credit losses to total loans, excluding guaranteed loans1.38 %1.34 %1.35 %1.47 %1.48 %
Allowance for credit losses to nonperforming loans354.1 %380.2 %308.2 %290.5 %877.1 %
Net charge-offs to average loans -annualized0.02 %0.22 %1.06 %0.26 %0.12 %
WEALTH MANAGEMENT
Trust assets under management$2,367,409 $2,352,902 $2,235,073 $2,129,408 $1,992,563 
SHARE DATA
Book value per common share$45.08 $44.24 $43.94 $41.19 $41.39 
Tangible book value per common share1
$35.02 $34.21 $33.85 $31.06 $31.23 
Market value per share$40.91 $40.56 $44.65 $37.50 $39.10 
Period end common shares outstanding37,344 37,515 37,416 37,385 37,359 
Average basic common shares37,485 37,490 37,421 37,405 37,347 
Average diluted common shares37,540 37,597 37,554 37,520 37,495 
CAPITAL
Total risk-based capital to risk-weighted assets2
14.6 %14.3 %14.2 %14.1 %14.1 %
Tier 1 capital to risk-weighted assets2
13.0 %12.8 %12.7 %12.6 %12.5 %
Common equity tier 1 capital to risk-weighted assets2
11.7 %11.4 %11.3 %11.2 %11.1 %
Tangible common equity to tangible assets1
9.18 %9.01 %8.96 %8.51 %8.65 %
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.
17

ENTERPRISE FINANCIAL SERVICES CORP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Quarter endedSix months ended
($ in thousands)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
CORE EFFICIENCY RATIO
Net interest income (GAAP)$140,529 $137,728 $140,732 $141,639 $140,692 $278,257 $280,221 
Tax-equivalent adjustment2,047 2,040 1,915 2,061 2,062 4,087 4,103 
Noninterest income (GAAP)15,494 12,158 25,452 12,085 14,290 27,652 31,188 
Less gain on sale of investment securities— — 220 — — — 381 
Less gain (loss) on sale of other real estate owned— (2)— — 97 (2)187 
Core revenue (non-GAAP)158,070 151,928 167,879 155,785 156,947 309,998 314,944 
Noninterest expense (GAAP)94,017 93,501 92,603 88,644 85,956 187,518 166,939 
Less FDIC special assessment— 625 2,412 — — 625 — 
Less core conversion expense1,250 350 — — — 1,600 — 
Less amortization on intangibles944 1,047 1,108 1,118 1,136 1,991 2,375 
Core noninterest expense (non-GAAP)91,823 91,479 89,083 87,526 84,820 183,302 164,564 
Core efficiency ratio (non-GAAP)58.09 %60.21 %53.06 %56.18 %54.04 %59.13 %52.25 %

Quarter ended
(in thousands, except per share data)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023
TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Shareholders’ equity (GAAP)$1,755,273 $1,731,725 $1,716,068 $1,611,880 $1,618,233 
Less preferred stock71,988 71,988 71,988 71,988 71,988 
Less goodwill365,164 365,164 365,164 365,164 365,164 
Less intangible assets10,327 11,271 12,318 13,425 14,544 
Tangible common equity (non-GAAP)$1,307,794 $1,283,302 $1,266,598 $1,161,303 $1,166,537 
Less net unrealized losses on HTM securities, after tax52,220 47,822 41,038 81,367 53,611 
Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP)$1,255,574 $1,235,480 $1,225,560 $1,079,936 $1,112,926 
Common shares outstanding37,344 37,515 37,416 37,385 37,359 
Tangible book value per share (non-GAAP)$35.02 $34.21 $33.85 $31.06 $31.23 
Total assets (GAAP)$14,615,666 $14,613,338 $14,518,590 $14,025,042 $13,871,154 
Less goodwill365,164 365,164 365,164 365,164 365,164 
Less intangible assets10,327 11,271 12,318 13,425 14,544 
Tangible assets (non-GAAP)$14,240,175 $14,236,903 $14,141,108 $13,646,453 $13,491,446 
Tangible common equity to tangible assets (non-GAAP)9.18 %9.01 %8.96 %8.51 %8.65 %
Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP)8.82 %8.68 %8.67 %7.91 %8.25 %



18

Quarter EndedSix months ended
($ in thousands)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE)
Average shareholder’s equity (GAAP)$1,748,240 $1,738,698 $1,652,882 $1,648,605 $1,621,337 $1,743,469 $1,595,040 
Less average preferred stock71,988 71,988 71,988 71,988 71,988 71,988 71,988 
Less average goodwill365,164 365,164 365,164 365,164 365,164 365,164 365,164 
Less average intangible assets10,783 11,770 12,858 13,967 15,094 11,277 15,667 
Average tangible common equity (non-GAAP)$1,300,305 $1,289,776 $1,202,872 $1,197,486 $1,169,091 $1,295,040 $1,142,221 
Net income available to common shareholders (GAAP)$44,509 $39,463 $43,592 $43,727 $48,190 $83,972 $102,990 
FDIC special assessment (after tax)— 470 1,814 — — 470 — 
Core conversion expense (after tax)940 263 — — — 1,203 — 
Net income available to common shareholders adjusted (non-GAAP)$45,449 $40,196 $45,406 $43,727 $48,190 $85,645 $102,990 
Return on average common equity (non-GAAP)10.68 %9.52 %10.94 %11.00 %12.48 %10.10 %13.64 %
Adjusted return on average common equity (non-GAAP)10.90 %9.70 %11.40 %11.00 %12.48 %10.30 %13.64 %
ROATCE (non-GAAP)13.77 %12.31 %14.38 %14.49 %16.53 %13.04 %18.18 %
Adjusted ROATCE (non-GAAP)14.06 %12.53 %14.98 %14.49 %16.53 %13.30 %18.18 %

Quarter ended
($ in thousands)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023
CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)
Net interest income$140,529 $137,728 $140,732 $141,639 $140,692 
Noninterest income15,494 12,158 25,452 12,085 14,290 
FDIC special assessment— 625 2,412 — — 
Core conversion expense1,250 350 — — — 
Less gain on sale of investment securities— — 220 — — 
Less gain (loss) on sale of other real estate owned— (2)— — 97 
Less noninterest expense94,017 93,501 92,603 88,644 85,956 
PPNR (non-GAAP)$63,256 $57,362 $75,773 $65,080 $68,929 

Quarter ended
($ in thousands)Jun 30,
2024		Mar 31,
2024
CALCULATION OF ESTIMATED INSURED DEPOSITS
Estimated uninsured deposits per Call Report$4,020,979 $4,062,505 
Collateralized/affiliate deposits(454,084)(515,439)
Accrued interest on deposits(5,632)(5,542)
Adjusted uninsured/uncollateralized deposits3,561,263 3,541,524 
Estimated insured/collateralized deposits8,721,120 8,712,177 
Total deposits$12,282,383 $12,253,701 
19

Quarter endedSix months ended
(in thousands, except per share data)Jun 30,
2024		Mar 31,
2024		Dec 31,
2023		Sep 30,
2023		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
RETURN ON AVERAGE ASSETS AND DILUTED EARNINGS PER SHARE
Net income (GAAP)$45,446 $40,401 $44,529 $44,665 $49,127 $85,847 $104,865 
FDIC special assessment (after tax)— 470 1,814 — — 470 — 
Core conversion expense (after tax)940 263 — — — 1,203 — 
Net income adjusted (non-GAAP)$46,386 $41,134 $46,343 $44,665 $49,127 $87,520 $104,865 
Less preferred stock dividends937 938 937 938 937 1,875 1,875 
Net income available to common shareholders adjusted (non-GAAP)$45,449 $40,196 $45,406 $43,727 $48,190 $85,645 $102,990 
Average assets$14,646,381 $14,556,119 $14,332,804 $14,068,860 $13,671,985 $14,601,250 $13,403,084 
Return on average assets (GAAP)1.25 %1.12 %1.23 %1.26 %1.44 %1.18 %1.58 %
Adjusted return on average assets (non-GAAP)1.27 %1.14 %1.28 %1.26 %1.44 %1.21 %1.58 %
Average diluted common shares37,540 37,597 37,554 37,520 37,495 37,564 37,511 
Adjusted diluted earnings per share (non-GAAP)$1.21 $1.07 $1.21 $1.17 $1.29 $2.28 $2.75 
20
Enterprise Financial Services Corp 2024 Second Quarter Earnings Webcast Exhibit 99.2

 
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,” “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: our ability to efficiently integrate acquisitions into our operations, retain the customers of these businesses and grow the acquired operations; credit risk; changes in the appraised valuation of real estate securing impaired loans; our ability to recover our investment in loans; fluctuations in the fair value of collateral underlying loans; outcomes of litigation and other contingencies; exposure to general and local economic and market conditions, including risk of recession, 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; changes in business prospects that could impact goodwill estimates and assumptions; consolidation within the banking industry; competition from banks and other financial institutions; the 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 business, including rules and regulations relating to bank products and financial services; changes in accounting policies and practices or accounting standards; 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 other health emergencies 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 other 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. 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. 2

 
Financial Highlights - 2Q24* Capital • Tangible Common Equity/Tangible Assets** 9.18%, compared to 9.01% • Tangible Book Value Per Common Share** $35.02, compared to $34.21 • CET1 Ratio 11.7%, compared to 11.4% • Repurchased 225,135 shares at an average price of $38.07 • Quarterly common stock dividend of $0.26 per share in second quarter 2024 ($0.01 increase) • Quarterly preferred stock dividend of $12.50 per share ($0.3125 per depositary share) • Net Income $45.4 million, up $5.0 million; EPS $1.19 • Net Interest Income $140.5 million, up $2.8 million; NIM 4.19% • PPNR** $63.3 million, up $5.9 million • Adjusted ROAA** 1.27%, compared to 1.14%; PPNR ROAA** 1.74%, compared to 1.58% • Adjusted ROATCE** 14.06%, compared to 12.53% Earnings *Comparisons noted below are to the linked quarter unless otherwise noted. **A Non-GAAP Measure, Refer to Appendix for Reconciliation. 3

 
Financial Highlights, continued - 2Q24* *Comparisons noted below are to the linked quarter unless otherwise noted. **A Non-GAAP Measure, Refer to Appendix for Reconciliation. Loans & Deposits • Loans $11.0 billion, down $28.5 million • Loan/Deposit Ratio 90% • Deposits $12.3 billion, up $28.7 million or $192.8 million excluding brokered CDs • Noninterest-bearing Deposits/Total Deposits 32% Asset Quality • Nonperforming Loans/Loans 0.36% • Nonperforming Assets/Assets 0.33% • Allowance Coverage Ratio 1.27%; 1.38% adjusted for guaranteed loans** • Net Charge-offs $0.6 million 4

 
Areas of Focus Organic Loan and Deposit Growth • Continue Funding Loan Growth with Customer Deposits • Build Franchise Value by Expanding Existing and Acquiring New Relationships Disciplined Loan and Deposit Pricing Focused Credit Underwriting and Monitoring Focus on Long-term Earnings Trajectory Core System Conversion 5

 
$10,513 $10,617 $10,884 $11,028 $11,000 2Q23 3Q23 4Q23 1Q24 2Q24 $ In Millions 5% Total Loan Grow th Loan Trends 6

 
Loan Details 2Q24 1Q24 2Q23 Qtr Change LTM Change C&I $ 2,107 $ 2,264 $ 2,029 $ (157) $ 78 CRE Investor Owned 2,309 2,281 2,291 28 18 CRE Owner Occupied 1,314 1,280 1,209 34 105 SBA loans* 1,269 1,275 1,328 (6) (59) Sponsor Finance* 866 865 880 1 (14) Life Insurance Premium Financing* 996 1,004 912 (8) 84 Tax Credits* 738 718 609 20 129 Residential Real Estate 340 354 355 (14) (15) Construction and Land Development 792 727 599 65 193 Other 269 260 301 9 (32) Total Loans $ 11,000 $ 11,028 $ 10,513 $ (28) $ 487 *Specialty loan category. $ In Millions 7

 
Loans By Region Specialty Lending $3,734 $3,918 $3,959 2Q23 1Q24 2Q24 $ In Millions Midwest $3,320 $3,412 $3,279 2Q23 1Q24 2Q24 Southwest $1,415 $1,605 $1,649 2Q23 1Q24 2Q24 Note: Excludes “Other” loans; Region Components: Midwest (St. Louis & Kansas City), Southwest (AZ, NM, Las Vegas, TX), West (Southern California) West $1,743 $1,833 $1,844 2Q23 1Q24 2Q24 8

 
Deposit Details 2Q24 1Q24 2Q23 Qtr Change LTM Change Noninterest-bearing demand accounts $ 3,928 $ 3,805 $ 3,881 $ 123 $ 47 Interest-bearing demand accounts 2,952 2,956 2,629 (4) 323 Money market accounts 3,474 3,431 2,913 43 561 Savings accounts 565 576 665 (11) (100) Certificates of deposit: Brokered 495 659 894 (164) (399) Customer 868 827 638 41 230 Total Deposits $ 12,282 $ 12,254 $ 11,620 $ 28 $ 662 Deposit Verticals (included in total deposits)** $ 3,033 $ 2,901 $ 2,474 $ 132 $ 559 $ In Millions * Total deposits excluding Deposit Verticals and brokered CDs increased $60 million from 1Q24 and increased $502 million from 2Q23 ** Note: prior period amounts have been reclassified among categories to conform to the current period presentation. Deposits related to specialty lending (i.e., Sponsor Finance and Life Insurance Premium Finance) are no longer included in Deposit Verticals. * 9

 
Deposits By Region Deposit Verticals** $2,474 $2,901 $3,033 2Q23 1Q24 2Q24 $ In Millions Midwest(*)** $6,027 $6,206 $6,111 2Q23 1Q24 2Q24 Southwest $1,811 $1,886 $1,984 2Q23 1Q24 2Q24 West* $1,308 $1,261 $1,154 2Q23 1Q24 2Q24 Note: Region Components: Midwest (St. Louis & Kansas City), Southwest (AZ, NM, Las Vegas, TX), West (Southern California) *Includes brokered balances ** Note, prior period amounts have been reclassified among categories to conform to the current period presentation. Deposits related to specialty lending (i.e., Sponsor Finance and Life Insurance Premium Finance) are no longer included in Deposit Verticals. 10

 
Differentiated Deposit Verticals 38.6% 34.6% 26.8% Community Associations $1.2 billion in deposit accounts specifically designed to serve the needs of community associations. Property Management $1.0 billion in deposits. Specializing in the compliance of Property Management Trust Accounts. Legal Industry and Escrow Services $813 million in deposits. Product lines providing services to independent escrow and non- depository trust companies. • $3.03 billion - 25% of total deposits • $3.09 billion - Average deposits for 2Q24 • $21.7 million - Related deposit costs in noninterest expense, resulting in an average deposit vertical cost of 2.82% in 2Q24 • $126.7 million - Average Deposits per Branch for FDIC Insured Banks with a deposit portfolio between $5-20B* • 25 - Number of traditional branches that would support the EFSC deposit vertical portfolio *Data Source: Deposit data as of June 30th, 2023, per the FDIC Summary of Deposits. 2Q23 3Q23 4Q23 1Q24 2Q24 Community Associations Property Management Legal Industry and Escrow Services $— $500 $1,000 $ In Millions 11

 
Core Funding Mix Commercial Business Banking Consumer $ In Millions $2,733$1,399$4,386 1At June 30, 2024 2Excludes insured accounts, collateralized accounts, accounts that qualify for pass-through insurance, reciprocal accounts, and affiliated accounts. Note: Brokered deposits were $0.7 billion at 2Q24 Deposit Verticals $3,033 2Q24 Net New/Closed Deposit Accounts COMMERCIAL BUSINESS BANKING CONSUMER DEPOSIT VERTICALS Total net average balance ($ in thousands) 2Q24 $ 64,583 $ 13,825 $ 20,882 $ 131,394 1Q24 $ 81,742 $ 16,921 $ 3,986 $ 142,484 4Q23 $ 85,358 $ 18,529 $ 26,556 $ 214,189 3Q23 $ 51,792 $ 35,842 $ 27,182 $ 228,800 Number of accounts 2Q24 (73) (60) 215 878 1Q24 (48) 31 759 2,260 4Q23 84 (77) 842 1,452 3Q23 96 (23) 996 1,229 Total Portfolio Average Account Size & Cost of Funds Average account size ($ in thousands) 2Q24 $ 255 $ 72 $ 24 $ 137 Cost of funds 2Q241 2.47 % 1.37 % 1.80 % 1.18 % • Estimated uninsured deposits of $3.6 billion, or 29% of total deposits2 • ~80% of commercial deposits utilize Treasury Management services • ~90% of checking and savings accounts utilize online banking services • ~60% of commercial deposits have a lending relationship • ~156% of on- and off-balance sheet liquidity to estimated uninsured deposits Overview 28% 36% 33% 39% 34% 19% 3% 7% 30% 20% 18% 21% 4% 59% 7% 32% 12

 
Earnings Per Share Trend - 2Q24 $1.05 $0.13 $0.02 $(0.01) $1.19 1Q24 Operating Revenue Provision for Credit Losses Noninterest Expense 2Q24 Change in EPS 13

 
$140.7 $141.6 $140.7 $137.7 $140.5 4.49% 4.33% 4.23% 4.13% 4.19% 4.99% 5.26% 5.33% 5.33% 5.33% Net Interest Income Net Interest Margin Avg Fed Funds Rate 2Q23 3Q23 4Q23 1Q24 2Q24 Net Interest Income Trend $ In Millions Stable Net Interest Income 2Q23 3Q23 4Q23 1Q24 2Q24 Net Interest Income - FTE $ 142.8 $ 143.7 $ 142.6 $ 139.8 $ 142.6 Purchase Accounting (Amortization)/Accretion $ (0.6) $ (0.6) $ 0.5 $ (0.5) $ 0.2 Adjusted Net Interest Income - FTE $ 142.2 $ 143.1 $ 143.1 $ 139.3 $ 142.8 Net Interest Margin 4.49 % 4.33 % 4.23 % 4.13 % 4.19 % Purchase Accounting (Amortization)/Accretion (0.02) % (0.02) % 0.02 % (0.02) % 0.00 % Adjusted Net Interest Margin 4.47 % 4.31 % 4.25 % 4.11 % 4.19 % 14

 
Net Interest Margin 6.64% 6.80% 6.87% 6.87% 6.95% 3.06% 3.11% 3.20% 3.27% 3.35% 5.97% 6.12% 6.20% 6.20% 6.28% Earning asset yield Securities yield Loan yield 2Q23 3Q23 4Q23 1Q24 2Q24 2.26% 2.77% 3.03% 3.14% 3.19% 1.46% 1.84% 2.03% 2.13% 2.16% 2.40% 2.84% 3.09% 3.22% 3.26% Interest-bearing deposit rate Total cost of deposits Interest-bearing liabilities 2Q23 3Q23 4Q23 1Q24 2Q24 Components of Interest-bearing LiabilitiesComponents of Interest-earning Assets 4.13% 0.05% 0.03% (0.01)% (0.01)% 4.19% 1Q24 Loans Other Earning Asset Mix Funding Mix Cost of Funds 2Q24 Margin Bridge 15

 
12 26 106 22 2 2Q23 3Q23 4Q23 1Q24 2Q24 $501 $104 $267 $144 $(28.5) 44.6% 41.0% 42.0% 44.4% 45.8% Organic Loans Avg Line Draw % 2Q23 3Q23 4Q23 1Q24 2Q24 2Q24 1Q24 2Q23 NPLs/Loans 0.36 % 0.32 % 0.15 % NPAs/Assets 0.33 % 0.30 % 0.12 % ACL/NPLs 354.1 % 380.2 % 877.1 % ACL/Loans** 1.38 % 1.34 % 1.48 % Annualized Net Charge-offs to Average Loans Provision for Credit Losses* $6.3 $8.0 $18.1 $5.8 $4.8 2Q23 3Q23 4Q23 1Q24 2Q24 $ In Millions bps bps bps bps bps $ In Millions Loan Growth and Average Line of Credit Utilization *Includes credit loss expense on loans, investments and unfunded commitments. **Excludes guaranteed loans. A Non-GAAP Measure, Refer to Appendix for Reconciliation. Credit Trends 16

 
$135.5 $4.6 $(0.6) $139.5 ACL 1Q24 Portfolio Changes Net Charge-offs ACL 2Q24 Allowance for Credit Losses for Loans $ In Millions • New loans and changes in composition of existing loans • Changes in risk ratings, past due status and reserves on individually evaluated loans • Changes in macroeconomic and qualitative factors 2Q24 $ In Millions Loans ACL ACL as a % of Loans Commercial and industrial $ 4,619 $ 61 1.32 % Commercial real estate 4,857 56 1.15 % Construction real estate 894 12 1.34 % Residential real estate 352 6 1.70 % Other 278 5 1.80 % Total $ 11,000 $ 140 1.27 % Reserves on sponsor finance, agricultural, and investor office CRE loans, which are included in the categories above, represented $19.9 million, $9.5 million, and $9.3 million, respectively. Total ACL percentage of loans excluding government guaranteed loans was 1.38%*. Key Assumptions: • Reasonable and supportable forecast period is one year with a one year reversion period. • Forecast considers a weighted average of baseline, upside and downside scenarios. • Primary macroeconomic factors: ◦ Percentage change in GDP ◦ Unemployment ◦ Percentage change in Retail Sales ◦ Percentage change in CRE Index *A Non-GAAP Measure, Refer to Appendix for Reconciliation. 17

 
Noninterest Income Trend $14.3 $12.1 $25.5 $12.2 $15.5 $5.1 $5.4 $6.3 $5.0 $4.0 $0.4 $(2.7) $9.7 $(2.2) $1.9 $3.9 $4.2 $4.3 $4.4 $4.5 $2.4 $2.6 $2.7 $2.4 $2.5 $2.5 $2.6 $2.5 $2.6 $2.6 9.2% 7.9% 15.3% 8.1% 9.9% Other Tax Credit Income Deposit Services Charge Card Services Wealth Management Noninterest income/Total income 2Q23 3Q23 4Q23 1Q24 2Q24 $5.1 $5.4 $6.3 $5.0 $4.0 $1.2 $1.8 $2.3 $1.6 $1.6 $0.4 $0.7 $0.8 $0.3 $0.6$0.8 $0.8 $1.3 $0.9 $0.9 $0.2 $0.1 $0.2 $0.2 $2.1 $0.3 $1.0 $0.6 $0.3 $0.4 $0.2 $0.7 $0.2 $0.4 $1.5 $1.4 Miscellaneous Servicing Fees BOLI Swap Fees CDE Private Equity Fund Distribution Gain on SBA loan sales 2Q23 3Q23 4Q23 1Q24 2Q24 $ In Millions Noninterest Income Other Noninterest Income Detail 18

 
Noninterest Expense Trend Other Noninterest Expense DetailNoninterest Expense $ In Millions $86.0 $88.6 $92.6 $93.5 $94.0 $23.4 $22.7 $24.6 $23.0 $23.6 $17.0 $21.0 $21.6 $20.3 $21.7 $2.4 $0.6$4.0 $4.2 $4.3 $4.3 $4.2 $41.6 $40.7 $39.7 $45.3 $44.5 54.0% 56.2% 53.1% 60.2% 58.1% Other Deposit costs FDIC special assessment Occupancy Employee compensation and benefits Core efficiency ratio* 2Q23 3Q23 4Q23 1Q24 2Q24 $23.4 $22.7 $24.6 $23.0 $23.6 $12.5 $11.4 $13.0 $11.2 $10.7 $3.7 $3.8 $4.0 $4.3 $5.3 $1.6 $1.4 $1.1 $1.4 $1.3 $2.6 $2.9 $2.7 $3.0 $3.1 $1.9 $2.1 $2.7 $2.1 $2.3 $1.1 $1.1 $1.1 $1.0 $0.9 Miscellaneous Data processing Professional fees FDIC and other insurance Loan, legal expenses Amortization expense 2Q23 3Q23 4Q23 1Q24 2Q24 *A Non-GAAP Measure, Refer to Appendix for Reconciliation. 19

 
Capital Tangible Common Equity/Tangible Assets 8.65% 8.51% 8.96% 9.01% 9.18% Tangible Common Equity/Tangible Assets* 2Q23 3Q23 4Q23 1Q24 2Q24 *A Non-GAAP Measure, Refer to Appendix for Reconciliation. **Preliminary regulatory capital ratios. Regulatory Capital 10.0% 14.1% 14.1% 14.2% 14.3% 14.6% 6.5% 11.1% 11.2% 11.3% 11.4% 11.7% CET1 Tier 1 Total Risk Based Capital Minimum "Well Capitalized" Ratio 2Q23 3Q23 4Q23 1Q24 2Q24 8.0% 12.5% 12.6% 12.7% 12.8% EFSC Capital Strategy: Low Cost - Highly Flexible High Capital Retention Rate – Strong earnings profile – Sustainable dividend profile Supporting Robust Asset Growth – Organic loan and deposit growth – High quality M&A to enhance commercial franchise and geographic diversification Maintain High Quality Capital Stack – Minimize WACC over time (preferred, sub debt, etc.) – Optimize capital levels CET1 ~10%, Tier 1 ~12%, and Total Capital ~14% Maintain 8-9% TCE – Common stock repurchases ◦ 225,135 shares repurchased at an average price of $38.07 in 2024 – M&A deal structures – Drives ROATCE above peer levels TBV and Dividends per Share $31.23 $31.06 $33.85 $34.21 $35.02 $0.25 $0.25 $0.25 $0.25 $0.26 TBV/Share* Dividends per Share 2Q23 3Q23 4Q23 1Q24 2Q24 13.0% ** 20

 
Appendix

 
Investment Portfolio Breakout AFS & HTM Securities Obligations of U.S. Government- sponsored enterprises 13% Obligations of states and political subdivisions 42% Agency mortgage- backed securities, 32% Corporate debt securities 6% U.S. Treasury bills 7% TOTAL $2.4 billion • Effective duration of 5.1 years balances the short 3-year duration of the loan portfolio • Cash flows next 12 months of approximately $375.3 million • 3.35% tax-equivalent yield • Municipal bond portfolio rated A or better • Laddered maturity and repayment structure for consistent cash flows Overview Total AFS (Fair Value) Total HTM (Fair Value) AFS Securities (Net Unrealized) HTM Securities (Net Unrealized) 2Q23 3Q23 4Q23 1Q24 2Q24 $— $600 $1,200 $1,800 $(320) $(160) $— $160 $ In Millions $74.6 $53.9 $144.6 $69.8 $67.2 5.07% 5.60% 5.36% 5.21% 5.43% Principal Cost Yield (TEQ) 2Q23 3Q23 4Q23 1Q24 2Q24 Investment Purchase Yield $ In Millions Investment Portfolio 22

 
EFSC Borrowing Capacity $4.4 $5.1 $5.1 $1.0 $1.3 $1.2 $2.5 $2.6 $2.6 $0.1 $0.1 $0.1$0.8 $1.1 $1.2 37% 42% 42% FHLB borrowing capacity FRB borrowing capacity Fed Funds lines Unpledged securities Borrowing capacity/Deposits 4Q23 1Q24 2Q24 $ In Billions End of Period and Average Loans to Deposits 91% 89% 89% 90% 90%90% 88% 88% 90% 89% End of period Loans/Deposits Avg Loans/Avg Deposits 2Q23 3Q23 4Q23 1Q24 2Q24 • $1.2 billion available FHLB capacity • $2.6 billion available FRB capacity • $140.0 million in seven federal funds lines • $1.2 billion in unpledged investment securities • $392.8 million cash • $25.0 million available line of credit • Portfolio of saleable SBA loans • Investment portfolio/total assets of 16% • FHLB maximum credit capacity is 45% of assets $0.4 $0.3 $0.3 $0.3 $0.2 $0.4 $0.7 $1.1 $1.3 $1.6 Annual Cash Flows Cumulative Cash Flows 2024 2025 2026 2027 2028 Investment Portfolio Cash Flows* $ In Billions Strong Liquidity Profile *Trailing 12 months ending June 30 of each year Liquidity 23

 
Office CRE (Non-owner Occupied) Total $491.7 million Midwest 49.0% Southwest 28.0% West 18.0% Specialty 5.0% Office CRE Loans by Location Real Estate/ Rental/Leasing 86.3% Health Care and Social Assistance 3.5% Other 10.2% Office CRE Loans by Industry Type Size Average Risk Rating Number of Loans Balance Average Balance > $10 Million 5.45 11 $ 161.6 $ 14.7 $5-10 Million 5.00 10 67.0 6.7 $2-5 Million 5.15 46 142.3 3.1 < $2 Million 5.24 209 120.8 0.6 Total 5.23 276 $ 491.7 $ 1.8 Office CRE Loans by Size $ In Millions • Average loan-to-origination value 52% • 71% of loans have recourse to owners • Average debt-service coverage ratio (DSCR) of 1.52x • Average market occupancy of 88%; average rents of $24 psf • 42% Class A, 54% Class B, 4% Class C • $11.5 million unfunded commitments • Limited near-term maturity risk: 10% to mature in 2024, 90% maturing in 2025 and beyond 24

 
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, ROAA, PPNR return on average assets (“PPNR ROAA”), allowance for coverage ratio adjusted for guaranteed loans, the tangible common equity ratio, and tangible book value per common 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, ROAA, PPNR ROAA, allowance for coverage ratio adjusted for guaranteed loans, the tangible common equity ratio, and tangible book value per common 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, merger-related expenses, facilities charges, and the gain or loss on sale of 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. 25

 
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,755,273 $ 1,731,725 $ 1,716,068 $ 1,611,880 $ 1,618,233 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 10,327 11,271 12,318 13,425 14,544 Tangible common equity $ 1,307,794 $ 1,283,302 $ 1,266,598 $ 1,161,303 $ 1,166,537 Common shares outstanding 37,344 37,515 37,416 37,385 37,359 Tangible book value per share (non-GAAP) $ 35.02 $ 34.21 $ 33.85 $ 31.06 $ 31.23 Total assets $ 14,615,666 $ 14,613,338 $ 14,518,590 $ 14,025,042 $ 13,871,154 Less goodwill 365,164 365,164 $ 365,164 365,164 365,164 Less intangible assets 10,327 11,271 $ 12,318 13,425 14,544 Tangible assets (non-GAAP) $ 14,240,175 $ 14,236,903 $ 14,141,108 $ 13,646,453 $ 13,491,446 Tangible common equity to tangible assets (non-GAAP) 9.18 % 9.01 % 8.96 % 8.51 % 8.65 % Quarter ended ($ in thousands) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 RETURN ON AVERAGE ASSETS Net income $ 45,446 $ 40,401 $ 44,529 $ 44,665 $ 49,127 FDIC special assessment (after tax) — 470 1,814 — — Core conversion expense (after tax) 940 263 — — — Net income adjusted (non-GAAP) $ 46,386 $ 41,134 $ 46,343 $ 44,665 $ 49,127 Average assets $ 14,646,381 $ 14,556,119 $ 14,332,804 $ 14,068,860 $ 13,671,985 ROAA 1.25 % 1.12 % 1.23 % 1.26 % 1.44 % Adjusted ROAA (non-GAAP) 1.27 % 1.14 % 1.28 % 1.26 % 1.44 % 26

 
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 140,529 $ 137,728 $ 140,732 $ 141,639 $ 140,692 Noninterest income 15,494 12,158 25,452 12,085 14,290 FDIC special assessment — 625 2,412 — — Core conversion expense 1,250 350 — — — Less gain on sale of investment securities — — 220 — — Less gain (loss) on sale of other real estate owned — (2) 97 Less noninterest expense 94,017 93,501 92,603 88,644 85,956 PPNR (non-GAAP) $ 63,256 $ 57,362 $ 75,773 $ 65,080 $ 68,929 Average assets $ 14,646,381 $ 14,556,119 $ 14,332,804 $ 14,068,860 $ 13,671,985 PPNR ROAA (non-GAAP) 1.74 % 1.58 % 2.10 % 1.84 % 2.02 % Quarter ended ($ in thousands) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE) Average shareholder’s equity $ 1,748,240 $ 1,738,698 $ 1,652,882 $ 1,648,605 $ 1,621,337 Less average preferred stock 71,988 71,988 71,988 71,988 71,988 Less average goodwill 365,164 365,164 365,164 365,164 365,164 Less average intangible assets 10,783 11,770 12,858 13,967 15,094 Average tangible common equity $ 1,300,305 $ 1,289,776 $ 1,202,872 $ 1,197,486 $ 1,169,091 Net income available to common shareholders (GAAP) $ 44,509 $ 39,463 $ 43,592 $ 43,727 $ 48,190 FDIC special assessment (after tax) — 470 1,814 — — Core conversion expense (after tax) 940 263 — — — Net income available to common shareholders adjusted (non-GAAP) $ 45,449 $ 40,196 $ 45,406 $ 43,727 $ 48,190 ROATCE (non-GAAP) 13.77 % 12.31 % 14.38 % 14.49 % 16.53 % Adjusted ROATCE (non-GAAP) 14.06 % 12.53 % 14.98 % 14.49 % 16.53 % 27

 
Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 ALLOWANCE COVERAGE RATIO ADJUSTED FOR GUARANTEED LOANS Loans (GAAP) $ 11,000,007 $ 11,028,492 $ 10,884,118 $ 10,616,820 $ 10,512,623 Less guaranteed loans 923,794 924,633 932,118 950,909 977,287 Adjusted loans (non-GAAP) $ 10,076,213 $ 10,103,859 $ 9,952,000 $ 9,665,911 $ 9,535,336 Allowance for credit losses $ 139,464 $ 135,498 $ 134,771 $ 142,133 $ 141,319 Allowance for credit losses/loans (GAAP) 1.27 % 1.23 % 1.24 % 1.34 % 1.34 % Allowance for credit losses/adjusted loans (non-GAAP) 1.38 % 1.34 % 1.35 % 1.47 % 1.48 % Quarter ended ($ in thousands) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 CORE EFFICIENCY RATIO Net interest income (GAAP) $ 140,529 $ 137,728 $ 140,732 $ 141,639 $ 140,692 Tax-equivalent adjustment 2,047 2,040 1,915 2,061 2,062 Noninterest income (GAAP) 15,494 12,158 25,452 12,085 14,290 Less gain on sale of investment securities — — 220 — — Less gain (loss) on sale of other real estate owned — (2) — — 97 Core revenue (non-GAAP) $ 158,070 $ 151,928 $ 167,879 $ 155,785 $ 156,947 Noninterest expense (GAAP) $ 94,017 $ 93,501 $ 92,603 $ 88,644 $ 85,956 Less FDIC special assessment — 625 2,412 — — Less core conversion expense 1,250 350 — — — Less amortization on intangibles 944 1,047 1,108 1,118 1,136 Core revenue (non-GAAP) $ 91,823 $ 91,479 $ 89,083 $ 87,526 $ 84,820 Core efficiency ratio (non-GAAP) 58.1 % 60.2 % 53.1 % 56.2 % 54.0 % 28

 

 
v3.24.2
Document and Entity Information Document
Jul. 22, 2024
Document Type 8-K
Document Period End Date Jul. 22, 2024
Entity Registrant Name ENTERPRISE FINANCIAL SERVICES CORP
Entity Incorporation, State or Country Code DE
Entity File Number 001-15373
Entity Tax Identification Number 43-1706259
Entity Address, Address Line One 150 N. Meramec Avenue
Entity Address, City or Town St. Louis
Entity Address, State or Province MO
Entity Address, Postal Zip Code 63105
City Area Code 314
Local Phone Number 725-5500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001025835
Amendment Flag false
Common Stock  
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol EFSC
Security Exchange Name NASDAQ
Depositary Shares  
Title of 12(b) Security Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A
Trading Symbol EFSCP
Security Exchange Name NASDAQ
Enterprise Financial Ser... (NASDAQ:EFSC)
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