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Enterprise Financial Reports Third Quarter 2024 Results

Third Quarter Results

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

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

Highlights

  • Earnings - Net income in the third quarter 2024 was $50.6 million, an increase of $5.1 million and $5.9 million compared to the linked and prior year quarters, respectively. Earnings per diluted common share for the third quarter 2024 was $1.32, compared to $1.19 and $1.17 for the linked and prior year quarters, respectively. Adjusted diluted earnings per common share1 was $1.29 for the third quarter 2024, compared to $1.21 and $1.17 for the linked and prior year quarters, respectively.
  • Pre-provision net revenue (“PPNR”)1 - PPNR of $65.1 million in the third quarter 2024 increased $1.8 million from the linked quarter and was relatively stable with the prior year quarter. The increase from the linked quarter was primarily due to higher noninterest income from sales of other real estate owned, and higher net interest income that benefited from an increase in average earning assets. The increase in operating revenue was partially offset by an increase in noninterest expense, primarily variable deposit services costs and employee compensation and benefits.
  • Net interest income and net interest margin (“NIM”) - Net interest income of $143.5 million for the third quarter 2024 increased $2.9 million and $1.8 million from the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income for the third quarter 2024 increased primarily due to higher interest-earning asset balances and an additional day in the quarter. NIM was 4.17% for the third quarter 2024, compared to 4.19% and 4.33% for the linked and prior year quarters, respectively. The total cost of deposits of 2.18% for the third quarter 2024 increased 2 basis points and 34 basis points from the linked and prior year quarters, respectively.
  • Noninterest income - Noninterest income of $21.4 million for the third quarter 2024 increased $5.9 million and $9.3 million from the linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily due to an increase in tax credit income, a net gain on the sale of other real estate owned and an increase in income on community development investments.
  • Noninterest expense - Noninterest expense of $98.0 million for the third quarter 2024 increased $4.0 million and $9.4 million from the linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily driven by higher employee compensation and variable deposit servicing costs. The Company continues to have success in recruiting new relationship managers and in deposit generation from existing relationships, both of which have contributed to an increase in average deposit balances. The increase from the prior year quarter was also affected by expenses related to the core system conversion.
  • Loans - Loans totaled $11.1 billion at September 30, 2024, an increase of $79.9 million from the linked quarter and an increase of $463.1 million from the prior year quarter. Average loans totaled $11.0 billion for both the current and linked quarter and $10.5 billion in the prior year quarter.
  • Asset quality - The allowance for credit losses to total loans was 1.26% at September 30, 2024, compared to 1.27% at June 30, 2024 and 1.34% at September 30, 2023. The ratio of nonperforming assets to total assets was 0.22% at September 30, 2024, compared to 0.33% and 0.40% at June 30, 2024 and September 30, 2023, respectively. The provision for credit losses recorded in the third quarter 2024 was $4.1 million, compared to $4.8 million and $8.0 million for the linked and prior year quarters, respectively.
  • Deposits - Deposits totaled $12.5 billion at September 30, 2024, an increase of $182.9 million from the linked quarter. Excluding brokered certificates of deposits, deposits increased $196.9 million. Average deposits were $12.5 billion, $12.3 billion and $11.9 billion for the current, linked and prior year quarters, respectively. At September 30, 2024, noninterest-bearing deposit accounts totaled $3.9 billion, or 31.6% of total deposits, and the loan to deposit ratio was 88.9%.
  • Liquidity - The total available on- and off-balance-sheet liquidity was approximately $5.8 billion at September 30, 2024. On-balance-sheet liquidity consisted of cash of $426.4 million and $1.4 billion in unpledged investment securities at September 30, 2024. Off-balance-sheet liquidity consisted of $1.2 billion available through the Federal Home Loan Bank, $2.6 billion available through the Federal Reserve and $140.0 million through correspondent bank lines. The Company also has an unused $25.0 million revolving line of credit and maintains a shelf registration allowing for the issuance of various forms of equity and debt securities.
  • Capital - Total shareholders’ equity was $1.8 billion and the tangible common equity to tangible assets ratio2 was 9.50% at September 30, 2024, compared to 9.18% at June 30, 2024. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.5% and a total risk-based capital ratio of 13.6% at September 30, 2024. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.9% and 14.8%, respectively, at September 30, 2024.

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

___________________

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

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

Net Interest Income and NIM

Average Balance Sheets

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

 

Quarter ended

 

September 30, 2024

 

June 30, 2024

 

September 30, 2023

($ in thousands)

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans1, 2

$

10,971,575

 

$

191,638

 

6.95

%

 

$

10,962,488

 

$

189,346

 

6.95

%

 

$

10,521,966

 

$

180,382

 

6.80

%

Securities2

 

2,503,124

 

 

21,404

 

3.40

 

 

 

2,396,519

 

 

19,956

 

3.35

 

 

 

2,302,850

 

 

18,076

 

3.11

 

Interest-earning deposits

 

402,932

 

 

5,348

 

5.28

 

 

 

325,452

 

 

4,389

 

5.42

 

 

 

335,771

 

 

4,509

 

5.33

 

Total interest-earning assets

 

13,877,631

 

 

218,390

 

6.26

 

 

 

13,684,459

 

 

213,691

 

6.28

 

 

 

13,160,587

 

 

202,967

 

6.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

971,824

 

 

 

 

 

 

961,922

 

 

 

 

 

 

908,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

14,849,455

 

 

 

 

 

$

14,646,381

 

 

 

 

 

$

14,068,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

$

3,018,309

 

$

20,002

 

2.64

%

 

$

2,950,827

 

$

18,801

 

2.56

%

 

$

2,672,084

 

$

13,701

 

2.03

%

Money market accounts

 

3,551,492

 

 

33,493

 

3.75

 

 

 

3,434,712

 

 

31,926

 

3.74

 

 

 

3,079,221

 

 

26,427

 

3.40

 

Savings accounts

 

561,466

 

 

345

 

0.24

 

 

 

573,115

 

 

335

 

0.24

 

 

 

646,187

 

 

250

 

0.15

 

Certificates of deposit

 

1,368,339

 

 

14,928

 

4.34

 

 

 

1,412,263

 

 

15,312

 

4.36

 

 

 

1,519,119

 

 

14,976

 

3.91

 

Total interest-bearing deposits

 

8,499,606

 

 

68,768

 

3.22

 

 

 

8,370,917

 

 

66,374

 

3.19

 

 

 

7,916,611

 

 

55,354

 

2.77

 

Subordinated debentures and notes

 

156,329

 

 

2,695

 

6.86

 

 

 

156,188

 

 

2,684

 

6.91

 

 

 

155,769

 

 

2,466

 

6.28

 

FHLB advances

 

4,565

 

 

59

 

5.14

 

 

 

40,308

 

 

561

 

5.60

 

 

 

10,326

 

 

141

 

5.42

 

Securities sold under agreements to repurchase

 

140,255

 

 

1,217

 

3.45

 

 

 

158,969

 

 

1,401

 

3.54

 

 

 

146,893

 

 

969

 

2.61

 

Other borrowings

 

36,226

 

 

96

 

1.05

 

 

 

36,203

 

 

95

 

1.06

 

 

 

50,571

 

 

337

 

2.66

 

Total interest-bearing liabilities

 

8,836,981

 

 

72,835

 

3.28

 

 

 

8,762,585

 

 

71,115

 

3.26

 

 

 

8,280,170

 

 

59,267

 

2.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

4,046,480

 

 

 

 

 

 

3,973,336

 

 

 

 

 

 

4,005,923

 

 

 

 

Other liabilities

 

161,625

 

 

 

 

 

 

162,220

 

 

 

 

 

 

134,162

 

 

 

 

Total liabilities

 

13,045,086

 

 

 

 

 

 

12,898,141

 

 

 

 

 

 

12,420,255

 

 

 

 

Shareholders' equity

 

1,804,369

 

 

 

 

 

 

1,748,240

 

 

 

 

 

 

1,648,605

 

 

 

 

Total liabilities and shareholders' equity

$

14,849,455

 

 

 

 

 

$

14,646,381

 

 

 

 

 

$

14,068,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net interest income

 

 

$

145,555

 

 

 

 

 

$

142,576

 

 

 

 

 

$

143,700

 

 

Net interest margin

 

 

 

 

4.17

%

 

 

 

 

 

4.19

%

 

 

 

 

 

4.33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Average balances include nonaccrual loans. Interest income includes net loan fees of $2.6 million, $2.2 million, and $3.3 million for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $2.1 million for each of the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

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

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

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

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

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

Investments

 

At

 

September 30, 2024

 

June 30, 2024

 

September 30, 2023

($ in thousands)

Carrying

Value

 

Net

Unrealized

Loss

 

Carrying

Value

 

Net

Unrealized

Loss

 

Carrying

Value

 

Net

Unrealized

Loss

Available-for-sale (AFS)

$

1,786,793

 

$

(122,158

)

 

$

1,615,930

 

$

(172,734

)

 

$

1,487,104

 

$

(235,013

)

Held-to-maturity (HTM)

 

851,647

 

 

(46,351

)

 

 

772,648

 

 

(69,442

)

 

 

730,655

 

 

(108,780

)

Total

$

2,638,440

 

$

(168,509

)

 

$

2,388,578

 

$

(242,176

)

 

$

2,217,759

 

$

(343,793

)

 

 

 

 

 

 

 

 

 

 

 

 

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

______________________

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

Loans

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

 

At

($ in thousands)

September 30,

2024

 

June 30,

2024

 

March 31,

2024

 

December 31,

2023

 

September 30,

2023

C&I

$

2,145,286

 

 

$

2,107,097

 

 

$

2,263,817

 

 

$

2,186,203

 

 

$

2,020,303

 

CRE investor owned

 

2,346,575

 

 

 

2,308,926

 

 

 

2,280,990

 

 

 

2,291,660

 

 

 

2,260,220

 

CRE owner occupied

 

1,322,714

 

 

 

1,313,742

 

 

 

1,279,929

 

 

 

1,262,264

 

 

 

1,255,885

 

SBA loans*

 

1,272,679

 

 

 

1,269,145

 

 

 

1,274,780

 

 

 

1,281,632

 

 

 

1,309,497

 

Sponsor finance*

 

819,079

 

 

 

865,883

 

 

 

865,180

 

 

 

872,264

 

 

 

888,000

 

Life insurance premium financing*

 

1,030,273

 

 

 

996,154

 

 

 

1,003,597

 

 

 

956,162

 

 

 

928,486

 

Tax credits*

 

724,441

 

 

 

738,249

 

 

 

718,383

 

 

 

734,594

 

 

 

683,580

 

Residential real estate

 

346,460

 

 

 

339,889

 

 

 

354,615

 

 

 

359,957

 

 

 

364,618

 

Construction and land development

 

796,586

 

 

 

791,780

 

 

 

726,742

 

 

 

670,567

 

 

 

639,555

 

Other

 

275,799

 

 

 

269,142

 

 

 

260,459

 

 

 

268,815

 

 

 

266,676

 

Total loans

$

11,079,892

 

 

$

11,000,007

 

 

$

11,028,492

 

 

$

10,884,118

 

 

$

10,616,820

 

 

 

 

 

 

 

 

 

 

 

Quarterly loan yield

 

6.95

%

 

 

6.95

%

 

 

6.87

%

 

 

6.87

%

 

 

6.80

%

Variable interest rate loans to total loans

 

61

%

 

 

61

%

 

 

61

%

 

 

61

%

 

 

61

%

 

*Specialty loan category

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

Asset Quality

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

 

At

($ in thousands)

September 30,

2024

 

June 30,

2024

 

March 31,

2024

 

December 31,

2023

 

September 30,

2023

Nonperforming loans*

$

28,376

 

 

$

39,384

 

 

$

35,642

 

 

$

43,728

 

 

$

48,932

 

Other

 

4,516

 

 

 

8,746

 

 

 

8,466

 

 

 

5,736

 

 

 

6,933

 

Nonperforming assets*

$

32,892

 

 

$

48,130

 

 

$

44,108

 

 

$

49,464

 

 

$

55,865

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

0.26

%

 

 

0.36

%

 

 

0.32

%

 

 

0.40

%

 

 

0.46

%

Nonperforming assets to total assets

 

0.22

%

 

 

0.33

%

 

 

0.30

%

 

 

0.34

%

 

 

0.40

%

Allowance for credit losses

$

139,778

 

 

$

139,464

 

 

$

135,498

 

 

$

134,771

 

 

$

142,133

 

Allowance for credit losses to total loans

 

1.26

%

 

 

1.27

%

 

 

1.23

%

 

 

1.24

%

 

 

1.34

%

Quarterly net charge-offs

$

3,850

 

 

$

605

 

 

$

5,864

 

 

$

28,479

 

 

$

6,856

 

 

 

 

 

 

 

 

 

 

 

*Guaranteed balances excluded

$

11,899

 

 

$

12,933

 

 

$

9,630

 

 

$

10,682

 

 

$

5,974

 

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

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

Deposits

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

 

At

($ in thousands)

September 30,

2024

 

June 30,

2024

 

March 31,

2024

 

December 31,

2023

 

September 30,

2023

Noninterest-bearing demand accounts

$

3,934,245

 

 

$

3,928,308

 

 

$

3,805,334

 

 

$

3,958,743

 

 

$

3,852,486

 

Interest-bearing demand accounts

 

3,048,981

 

 

 

2,951,899

 

 

 

2,956,282

 

 

 

2,950,259

 

 

 

2,749,598

 

Money market and savings accounts

 

4,121,543

 

 

 

4,039,626

 

 

 

4,006,702

 

 

 

3,994,455

 

 

 

3,837,145

 

Brokered certificates of deposit

 

480,934

 

 

 

494,870

 

 

 

659,005

 

 

 

482,759

 

 

 

695,551

 

Other certificates of deposit

 

879,619

 

 

 

867,680

 

 

 

826,378

 

 

 

790,155

 

 

 

775,127

 

Total deposit portfolio

$

12,465,322

 

 

$

12,282,383

 

 

$

12,253,701

 

 

$

12,176,371

 

 

$

11,909,907

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits to total deposits

 

31.6

%

 

 

32.0

%

 

 

31.1

%

 

 

32.5

%

 

 

32.3

%

Quarterly cost of deposits

 

2.18

%

 

 

2.16

%

 

 

2.13

%

 

 

2.03

%

 

 

1.84

%

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

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

__________________

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

Noninterest Income

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

 

Linked quarter comparison

 

Prior year comparison

 

Quarter ended

 

Quarter ended

($ in thousands)

September 30,

2024

 

June 30,

2024

 

Increase

(decrease)

 

September 30,

2023

 

Increase

(decrease)

Deposit service charges

$

4,649

 

$

4,542

 

$

107

 

2

%

 

$

4,187

 

 

$

462

 

 

11

%

Wealth management revenue

 

2,599

 

 

2,590

 

 

9

 

%

 

 

2,614

 

 

 

(15

)

 

(1

)%

Card services revenue

 

2,573

 

 

2,497

 

 

76

 

3

%

 

 

2,560

 

 

 

13

 

 

1

%

Tax credit income (loss)

 

3,252

 

 

1,874

 

 

1,378

 

74

%

 

 

(2,673

)

 

 

5,925

 

 

222

%

Other income

 

8,347

 

 

3,991

 

 

4,356

 

109

%

 

 

5,397

 

 

 

2,950

 

 

55

%

Total noninterest income

$

21,420

 

$

15,494

 

$

5,926

 

38

%

 

$

12,085

 

 

$

9,335

 

 

77

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

 

Linked quarter comparison

 

Prior year comparison

 

Quarter ended

 

Quarter ended

($ in thousands)

September 30,

2024

 

June 30,

2024

 

Increase

(decrease)

 

September 30,

2023

 

Increase

(decrease)

Gain on sales of other real estate owned

$

3,159

 

$

 

$

3,159

 

 

100

%

 

$

 

$

3,159

 

 

100

%

BOLI

 

1,123

 

 

855

 

 

268

 

 

31

%

 

 

822

 

 

301

 

 

37

%

Community development investments

 

1,177

 

 

381

 

 

796

 

 

209

%

 

 

338

 

 

839

 

 

248

%

Private equity fund distributions

 

614

 

 

411

 

 

203

 

 

49

%

 

 

181

 

 

433

 

 

239

%

Servicing fees

 

539

 

 

594

 

 

(55

)

 

(9

)%

 

 

701

 

 

(162

)

 

(23

)%

Swap fees

 

17

 

 

217

 

 

(200

)

 

(92

)%

 

 

54

 

 

(37

)

 

(69

)%

Gain on SBA loan sales

 

 

 

 

 

 

 

%

 

 

1,514

 

 

(1,514

)

 

(100

)%

Miscellaneous income

 

1,718

 

 

1,533

 

 

185

 

 

12

%

 

 

1,787

 

 

(69

)

 

(4

)%

Total other income

$

8,347

 

$

3,991

 

$

4,356

 

 

109

%

 

$

5,397

 

$

2,950

 

 

55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

Noninterest Expense

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

 

Linked quarter comparison

 

Prior year comparison

 

Quarter ended

 

Quarter ended

($ in thousands)

September 30,

2024

 

June 30,

2024

 

Increase

(decrease)

 

September 30,

2023

 

Increase

(decrease)

Employee compensation and benefits

$

45,359

 

$

44,524

 

$

835

 

2

%

 

$

40,771

 

$

4,588

 

11

%

Deposit costs

 

23,781

 

 

21,706

 

 

2,075

 

10

%

 

 

20,987

 

 

2,794

 

13

%

Occupancy

 

4,372

 

 

4,197

 

 

175

 

4

%

 

 

4,198

 

 

174

 

4

%

Core conversion expense

 

1,375

 

 

1,250

 

 

125

 

10

%

 

 

 

 

1,375

 

100

%

Other expense

 

23,120

 

 

22,340

 

 

780

 

3

%

 

 

22,688

 

 

432

 

2

%

Total noninterest expense

$

98,007

 

$

94,017

 

$

3,990

 

4

%

 

$

88,644

 

$

9,363

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

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

___________________

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

Income Taxes

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

Capital

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

 

At

($ in thousands)

September 30,

2024*

 

June 30,

2024

 

March 31,

2024

 

December 31,

2023

 

September 30,

2023

Shareholders’ equity

$

1,832,011

 

 

$

1,755,273

 

 

$

1,731,725

 

 

$

1,716,068

 

 

$

1,611,880

 

Total risk-based capital to risk-weighted assets

 

14.8

%

 

 

14.6

%

 

 

14.3

%

 

 

14.2

%

 

 

14.1

%

Tier 1 capital to risk weighted assets

 

13.2

%

 

 

13.0

%

 

 

12.8

%

 

 

12.7

%

 

 

12.6

%

Common equity tier 1 capital to risk-weighted assets

 

11.9

%

 

 

11.7

%

 

 

11.4

%

 

 

11.3

%

 

 

11.2

%

Leverage ratio

 

11.2

%

 

 

11.1

%

 

 

11.0

%

 

 

11.0

%

 

 

10.9

%

Tangible common equity to tangible assets

 

9.50

%

 

 

9.18

%

 

 

9.01

%

 

 

8.96

%

 

 

8.51

%

 

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

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

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

Use of Non-GAAP Financial Measures

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

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

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

Conference Call and Webcast Information

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

About Enterprise Financial Services Corp

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

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

Forward-looking Statements

Readers should note that, in addition to the historical information contained herein, this press release contains “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, shareholder value creation and the impact of acquisitions.

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

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

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

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited)

 

 

Quarter ended

 

Nine months ended

(in thousands, except per share data)

Sep 30,

2024

 

Jun 30,

2024

 

Mar 31,

2024

 

Dec 31,

2023

 

Sep 30,

2023

 

Sep 30,

2024

 

Sep 30,

2023

EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

143,469

 

 

$

140,529

 

 

$

137,728

 

 

$

140,732

 

 

$

141,639

 

 

$

421,726

 

 

$

421,860

 

Provision for credit losses

 

4,099

 

 

 

4,819

 

 

 

5,756

 

 

 

18,053

 

 

 

8,030

 

 

 

14,674

 

 

 

18,552

 

Noninterest income

 

21,420

 

 

 

15,494

 

 

 

12,158

 

 

 

25,452

 

 

 

12,085

 

 

 

49,072

 

 

 

43,273

 

Noninterest expense

 

98,007

 

 

 

94,017

 

 

 

93,501

 

 

 

92,603

 

 

 

88,644

 

 

 

285,525

 

 

 

255,583

 

Income before income tax expense

 

62,783

 

 

 

57,187

 

 

 

50,629

 

 

 

55,528

 

 

 

57,050

 

 

 

170,599

 

 

 

190,998

 

Income tax expense

 

12,198

 

 

 

11,741

 

 

 

10,228

 

 

 

10,999

 

 

 

12,385

 

 

 

34,167

 

 

 

41,468

 

Net income

 

50,585

 

 

 

45,446

 

 

 

40,401

 

 

 

44,529

 

 

 

44,665

 

 

 

136,432

 

 

 

149,530

 

Preferred stock dividends

 

938

 

 

 

937

 

 

 

938

 

 

 

937

 

 

 

938

 

 

 

2,813

 

 

 

2,813

 

Net income available to common shareholders

$

49,647

 

 

$

44,509

 

 

$

39,463

 

 

$

43,592

 

 

$

43,727

 

 

$

133,619

 

 

$

146,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

1.32

 

 

$

1.19

 

 

$

1.05

 

 

$

1.16

 

 

$

1.17

 

 

$

3.56

 

 

$

3.91

 

Adjusted diluted earnings per common share1

$

1.29

 

 

$

1.21

 

 

$

1.07

 

 

$

1.20

 

 

$

1.17

 

 

$

3.57

 

 

$

3.90

 

Return on average assets

 

1.36

%

 

 

1.25

%

 

 

1.12

%

 

 

1.23

%

 

 

1.26

%

 

 

1.24

%

 

 

1.47

%

Adjusted return on average assets1

 

1.32

%

 

 

1.27

%

 

 

1.14

%

 

 

1.28

%

 

 

1.26

%

 

 

1.24

%

 

 

1.46

%

Return on average common equity1

 

11.40

%

 

 

10.68

%

 

 

9.52

%

 

 

10.94

%

 

 

11.00

%

 

 

10.55

%

 

 

12.73

%

Adjusted return on average common equity1

 

11.09

%

 

 

10.90

%

 

 

9.70

%

 

 

11.35

%

 

 

11.00

%

 

 

10.58

%

 

 

12.69

%

ROATCE1

 

14.55

%

 

 

13.77

%

 

 

12.31

%

 

 

14.38

%

 

 

14.49

%

 

 

13.56

%

 

 

16.90

%

Adjusted ROATCE1

 

14.16

%

 

 

14.06

%

 

 

12.53

%

 

 

14.92

%

 

 

14.49

%

 

 

13.60

%

 

 

16.85

%

Net interest margin (tax equivalent)

 

4.17

%

 

 

4.19

%

 

 

4.13

%

 

 

4.23

%

 

 

4.33

%

 

 

4.17

%

 

 

4.50

%

Efficiency ratio

 

59.44

%

 

 

60.26

%

 

 

62.38

%

 

 

55.72

%

 

 

57.66

%

 

 

60.65

%

 

 

54.95

%

Core efficiency ratio1

 

58.42

%

 

 

58.09

%

 

 

60.21

%

 

 

53.06

%

 

 

56.18

%

 

 

58.89

%

 

 

53.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

14,954,125

 

 

$

14,615,666

 

 

$

14,613,338

 

 

$

14,518,590

 

 

$

14,025,042

 

 

 

 

 

Average assets

$

14,849,455

 

 

$

14,646,381

 

 

$

14,556,119

 

 

$

14,332,804

 

 

$

14,068,860

 

 

$

14,684,589

 

 

$

13,627,448

 

Period end common shares outstanding

 

37,184

 

 

 

37,344

 

 

 

37,515

 

 

 

37,416

 

 

 

37,385

 

 

 

 

 

Dividends per common share

$

0.27

 

 

$

0.26

 

 

$

0.25

 

 

$

0.25

 

 

$

0.25

 

 

$

0.78

 

 

$

0.75

 

Tangible book value per common share1

$

37.26

 

 

$

35.02

 

 

$

34.21

 

 

$

33.85

 

 

$

31.06

 

 

 

 

 

Tangible common equity to tangible assets1

 

9.50

%

 

 

9.18

%

 

 

9.01

%

 

 

8.96

%

 

 

8.51

%

 

 

 

 

Total risk-based capital to risk-weighted assets2

 

14.8

%

 

 

14.6

%

 

 

14.3

%

 

 

14.2

%

 

 

14.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.

2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

 

 

Quarter ended

 

Nine months ended

(in thousands, except per share data)

Sep 30,

2024

 

Jun 30,

2024

 

Mar 31,

2024

 

Dec 31,

2023

 

Sep 30,

2023

 

Sep 30,

2024

 

Sep 30,

2023

INCOME STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

216,304

 

$

211,644

 

$

207,723

 

 

$

207,083

 

$

200,906

 

 

$

635,671

 

$

557,836

 

Interest expense

 

72,835

 

 

71,115

 

 

69,995

 

 

 

66,351

 

 

59,267

 

 

 

213,945

 

 

135,976

 

Net interest income

 

143,469

 

 

140,529

 

 

137,728

 

 

 

140,732

 

 

141,639

 

 

 

421,726

 

 

421,860

 

Provision for credit losses

 

4,099

 

 

4,819

 

 

5,756

 

 

 

18,053

 

 

8,030

 

 

 

14,674

 

 

18,552

 

Net interest income after provision for credit losses

 

139,370

 

 

135,710

 

 

131,972

 

 

 

122,679

 

 

133,609

 

 

 

407,052

 

 

403,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

4,649

 

 

4,542

 

 

4,423

 

 

 

4,334

 

 

4,187

 

 

 

13,614

 

 

12,225

 

Wealth management revenue

 

2,599

 

 

2,590

 

 

2,544

 

 

 

2,428

 

 

2,614

 

 

 

7,733

 

 

7,602

 

Card services revenue

 

2,573

 

 

2,497

 

 

2,412

 

 

 

2,666

 

 

2,560

 

 

 

7,482

 

 

7,362

 

Tax credit income (loss)

 

3,252

 

 

1,874

 

 

(2,190

)

 

 

9,688

 

 

(2,673

)

 

 

2,936

 

 

(492

)

Other income

 

8,347

 

 

3,991

 

 

4,969

 

 

 

6,336

 

 

5,397

 

 

 

17,307

 

 

16,576

 

Total noninterest income

 

21,420

 

 

15,494

 

 

12,158

 

 

 

25,452

 

 

12,085

 

 

 

49,072

 

 

43,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

45,359

 

 

44,524

 

 

45,262

 

 

 

39,651

 

 

40,771

 

 

 

135,145

 

 

124,915

 

Deposit costs

 

23,781

 

 

21,706

 

 

20,277

 

 

 

21,606

 

 

20,987

 

 

 

65,764

 

 

50,688

 

Occupancy

 

4,372

 

 

4,197

 

 

4,326

 

 

 

4,313

 

 

4,198

 

 

 

12,895

 

 

12,213

 

FDIC special assessment

 

 

 

 

 

625

 

 

 

2,412

 

 

 

 

 

625

 

 

 

Core conversion expense

 

1,375

 

 

1,250

 

 

350

 

 

 

 

 

 

 

 

2,975

 

 

 

Other expense

 

23,120

 

 

22,340

 

 

22,661

 

 

 

24,621

 

 

22,688

 

 

 

68,121

 

 

67,767

 

Total noninterest expense

 

98,007

 

 

94,017

 

 

93,501

 

 

 

92,603

 

 

88,644

 

 

 

285,525

 

 

255,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

62,783

 

 

57,187

 

 

50,629

 

 

 

55,528

 

 

57,050

 

 

 

170,599

 

 

190,998

 

Income tax expense

 

12,198

 

 

11,741

 

 

10,228

 

 

 

10,999

 

 

12,385

 

 

 

34,167

 

 

41,468

 

Net income

$

50,585

 

$

45,446

 

$

40,401

 

 

$

44,529

 

$

44,665

 

 

$

136,432

 

$

149,530

 

Preferred stock dividends

 

938

 

 

937

 

 

938

 

 

 

937

 

 

938

 

 

 

2,813

 

 

2,813

 

Net income available to common shareholders

$

49,647

 

$

44,509

 

$

39,463

 

 

$

43,592

 

$

43,727

 

 

$

133,619

 

$

146,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

1.33

 

$

1.19

 

$

1.05

 

 

$

1.16

 

$

1.17

 

 

$

3.57

 

$

3.93

 

Diluted earnings per common share

$

1.32

 

$

1.19

 

$

1.05

 

 

$

1.16

 

$

1.17

 

 

$

3.56

 

$

3.91

 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

 

 

At

($ in thousands)

Sep 30,

2024

 

Jun 30,

2024

 

Mar 31,

2024

 

Dec 31,

2023

 

Sep 30,

2023

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

210,984

 

 

$

176,698

 

 

$

157,697

 

 

$

193,275

 

 

$

190,806

 

Interest-earning deposits

 

218,919

 

 

 

219,342

 

 

 

215,951

 

 

 

243,610

 

 

 

184,245

 

Debt and equity investments

 

2,714,194

 

 

 

2,460,549

 

 

 

2,443,977

 

 

 

2,434,902

 

 

 

2,279,578

 

Loans held for sale

 

304

 

 

 

606

 

 

 

610

 

 

 

359

 

 

 

212

 

 

 

 

 

 

 

 

 

 

 

Loans

 

11,079,892

 

 

 

11,000,007

 

 

 

11,028,492

 

 

 

10,884,118

 

 

 

10,616,820

 

Allowance for credit losses

 

(139,778

)

 

 

(139,464

)

 

 

(135,498

)

 

 

(134,771

)

 

 

(142,133

)

Total loans, net

 

10,940,114

 

 

 

10,860,543

 

 

 

10,892,994

 

 

 

10,749,347

 

 

 

10,474,687

 

 

 

 

 

 

 

 

 

 

 

Fixed assets, net

 

44,368

 

 

 

44,831

 

 

 

44,382

 

 

 

42,681

 

 

 

41,268

 

Goodwill

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

Intangible assets, net

 

9,400

 

 

 

10,327

 

 

 

11,271

 

 

 

12,318

 

 

 

13,425

 

Other assets

 

450,678

 

 

 

477,606

 

 

 

481,292

 

 

 

476,934

 

 

 

475,657

 

Total assets

$

14,954,125

 

 

$

14,615,666

 

 

$

14,613,338

 

 

$

14,518,590

 

 

$

14,025,042

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

3,934,245

 

 

$

3,928,308

 

 

$

3,805,334

 

 

$

3,958,743

 

 

$

3,852,486

 

Interest-bearing deposits

 

8,531,077

 

 

 

8,354,075

 

 

 

8,448,367

 

 

 

8,217,628

 

 

 

8,057,421

 

Total deposits

 

12,465,322

 

 

 

12,282,383

 

 

 

12,253,701

 

 

 

12,176,371

 

 

 

11,909,907

 

Subordinated debentures and notes

 

156,407

 

 

 

156,265

 

 

 

156,124

 

 

 

155,984

 

 

 

155,844

 

FHLB advances

 

150,000

 

 

 

78,000

 

 

 

125,000

 

 

 

 

 

 

 

Other borrowings

 

170,815

 

 

 

178,269

 

 

 

195,246

 

 

 

297,829

 

 

 

182,372

 

Other liabilities

 

179,570

 

 

 

165,476

 

 

 

151,542

 

 

 

172,338

 

 

 

165,039

 

Total liabilities

 

13,122,114

 

 

 

12,860,393

 

 

 

12,881,613

 

 

 

12,802,522

 

 

 

12,413,162

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

Preferred stock

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

Common stock

 

372

 

 

 

373

 

 

 

375

 

 

 

374

 

 

 

374

 

Additional paid-in capital

 

992,642

 

 

 

994,116

 

 

 

995,969

 

 

 

995,208

 

 

 

992,044

 

Retained earnings

 

845,844

 

 

 

810,935

 

 

 

778,784

 

 

 

749,513

 

 

 

715,303

 

Accumulated other comprehensive loss

 

(78,835

)

 

 

(122,139

)

 

 

(115,391

)

 

 

(101,015

)

 

 

(167,829

)

Total shareholders’ equity

 

1,832,011

 

 

 

1,755,273

 

 

 

1,731,725

 

 

 

1,716,068

 

 

 

1,611,880

 

Total liabilities and shareholders’ equity

$

14,954,125

 

 

$

14,615,666

 

 

$

14,613,338

 

 

$

14,518,590

 

 

$

14,025,042

 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

 

 

Nine months ended

 

September 30, 2024

 

September 30, 2023

($ in thousands)

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

AVERAGE BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans1, 2

$

10,954,063

 

$

567,687

 

6.92%

 

$

10,203,291

 

$

503,458

 

6.60%

Securities2

 

2,433,659

 

 

60,851

 

3.34

 

 

2,296,485

 

 

52,743

 

3.07

Interest-earning deposits

 

332,409

 

 

13,306

 

5.35

 

 

206,110

 

 

7,799

 

5.06

Total interest-earning assets

 

13,720,131

 

 

641,844

 

6.25

 

 

12,705,886

 

 

564,000

 

5.93

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

964,458

 

 

 

 

 

 

921,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

14,684,589

 

 

 

 

 

$

13,627,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

$

2,964,667

 

$

57,415

 

2.59%

 

$

2,462,988

 

$

29,728

 

1.61%

Money market accounts

 

3,462,993

 

 

96,777

 

3.73

 

 

2,942,970

 

 

62,397

 

2.83

Savings accounts

 

573,853

 

 

983

 

0.23

 

 

688,157

 

 

707

 

0.14

Certificates of deposit

 

1,374,176

 

 

44,441

 

4.32

 

 

1,139,489

 

 

28,555

 

3.35

Total interest-bearing deposits

 

8,375,689

 

 

199,616

 

3.18

 

 

7,233,604

 

 

121,387

 

2.24

Subordinated debentures and notes

 

156,188

 

 

7,863

 

6.72

 

 

155,633

 

 

7,306

 

6.28

FHLB advances

 

39,427

 

 

1,649

 

5.59

 

 

73,020

 

 

2,752

 

5.04

Securities sold under agreements to repurchase

 

167,939

 

 

4,422

 

3.52

 

 

174,783

 

 

2,422

 

1.85

Other borrowings

 

38,381

 

 

395

 

1.37

 

 

79,396

 

 

2,109

 

3.55

Total interest-bearing liabilities

 

8,777,624

 

 

213,945

 

3.26

 

 

7,716,436

 

 

135,976

 

2.36

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

3,982,015

 

 

 

 

 

 

4,178,038

 

 

 

 

Other liabilities

 

161,033

 

 

 

 

 

 

119,883

 

 

 

 

Total liabilities

 

12,920,672

 

 

 

 

 

 

12,014,357

 

 

 

 

Shareholders' equity

 

1,763,917

 

 

 

 

 

 

1,613,091

 

 

 

 

Total liabilities and shareholders' equity

$

14,684,589

 

 

 

 

 

$

13,627,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net interest income

 

 

$

427,899

 

 

 

 

 

$

428,024

 

 

Net interest margin

 

 

 

 

4.17%

 

 

 

 

 

4.50%

 

 

 

 

 

 

 

 

 

 

 

 

1 Average balances include nonaccrual loans. Interest income includes net loan fees of $7.2 million and $10.7 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $6.2 million for both the nine months ended September 30, 2024 and September 30, 2023, respectively.

 

 

 

 

 

 

 

 

 

 

 

 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

 

 

At or for the quarter ended

($ in thousands)

Sep 30,

2024

 

Jun 30,

2024

 

Mar 31,

2024

 

Dec 31,

2023

 

Sep 30,

2023

LOAN PORTFOLIO

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

4,628,488

 

 

$

4,619,448

 

 

$

4,766,310

 

 

$

4,672,559

 

 

$

4,448,535

 

Commercial real estate

 

4,915,176

 

 

 

4,856,751

 

 

 

4,804,803

 

 

 

4,803,571

 

 

 

4,794,355

 

Construction real estate

 

896,325

 

 

 

893,672

 

 

 

820,416

 

 

 

760,425

 

 

 

723,796

 

Residential real estate

 

355,279

 

 

 

351,934

 

 

 

367,218

 

 

 

372,188

 

 

 

376,120

 

Other

 

284,624

 

 

 

278,202

 

 

 

269,745

 

 

 

275,375

 

 

 

274,014

 

Total loans

$

11,079,892

 

 

$

11,000,007

 

 

$

11,028,492

 

 

$

10,884,118

 

 

$

10,616,820

 

 

 

 

 

 

 

 

 

 

 

DEPOSIT PORTFOLIO

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand accounts

$

3,934,245

 

 

$

3,928,308

 

 

$

3,805,334

 

 

$

3,958,743

 

 

$

3,852,486

 

Interest-bearing demand accounts

 

3,048,981

 

 

 

2,951,899

 

 

 

2,956,282

 

 

 

2,950,259

 

 

 

2,749,598

 

Money market and savings accounts

 

4,121,543

 

 

 

4,039,626

 

 

 

4,006,702

 

 

 

3,994,455

 

 

 

3,837,145

 

Brokered certificates of deposit

 

480,934

 

 

 

494,870

 

 

 

659,005

 

 

 

482,759

 

 

 

695,551

 

Other certificates of deposit

 

879,619

 

 

 

867,680

 

 

 

826,378

 

 

 

790,155

 

 

 

775,127

 

Total deposits

$

12,465,322

 

 

$

12,282,383

 

 

$

12,253,701

 

 

$

12,176,371

 

 

$

11,909,907

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

Loans

$

10,971,575

 

 

$

10,962,488

 

 

$

10,927,932

 

 

$

10,685,961

 

 

$

10,521,966

 

Securities

 

2,503,124

 

 

 

2,396,519

 

 

 

2,400,571

 

 

 

2,276,915

 

 

 

2,302,850

 

Interest-earning assets

 

13,877,631

 

 

 

13,684,459

 

 

 

13,596,571

 

 

 

13,383,638

 

 

 

13,160,587

 

Assets

 

14,849,455

 

 

 

14,646,381

 

 

 

14,556,119

 

 

 

14,332,804

 

 

 

14,068,860

 

Deposits

 

12,546,086

 

 

 

12,344,253

 

 

 

12,180,703

 

 

 

12,163,346

 

 

 

11,922,534

 

Shareholders’ equity

 

1,804,369

 

 

 

1,748,240

 

 

 

1,738,698

 

 

 

1,652,882

 

 

 

1,648,605

 

Tangible common equity1

 

1,357,362

 

 

 

1,300,305

 

 

 

1,289,776

 

 

 

1,202,872

 

 

 

1,197,486

 

 

 

 

 

 

 

 

 

 

 

YIELDS (tax equivalent)

 

 

 

 

 

 

 

 

 

Loans

 

6.95

%

 

 

6.95

%

 

 

6.87

%

 

 

6.87

%

 

 

6.80

%

Securities

 

3.40

 

 

 

3.35

 

 

 

3.27

 

 

 

3.20

 

 

 

3.11

 

Interest-earning assets

 

6.26

 

 

 

6.28

 

 

 

6.20

 

 

 

6.20

 

 

 

6.12

 

Interest-bearing deposits

 

3.22

 

 

 

3.19

 

 

 

3.14

 

 

 

3.03

 

 

 

2.77

 

Deposits

 

2.18

 

 

 

2.16

 

 

 

2.13

 

 

 

2.03

 

 

 

1.84

 

Subordinated debentures and notes

 

6.86

 

 

 

6.91

 

 

 

6.40

 

 

 

6.30

 

 

 

6.28

 

FHLB advances and other borrowed funds

 

3.01

 

 

 

3.52

 

 

 

3.80

 

 

 

3.06

 

 

 

2.76

 

Interest-bearing liabilities

 

3.28

 

 

 

3.26

 

 

 

3.22

 

 

 

3.09

 

 

 

2.84

 

Net interest margin

 

4.17

 

 

 

4.19

 

 

 

4.13

 

 

 

4.23

 

 

 

4.33

 

1Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

 

 

Quarter ended

(in thousands, except per share data)

Sep 30,

2024

 

Jun 30,

2024

 

Mar 31,

2024

 

Dec 31,

2023

 

Sep 30,

2023

ASSET QUALITY

 

 

 

 

 

 

 

 

 

Net charge-offs

$

3,850

 

 

$

605

 

 

$

5,864

 

 

$

28,479

 

 

$

6,856

 

Nonperforming loans

 

28,376

 

 

 

39,384

 

 

 

35,642

 

 

 

43,728

 

 

 

48,932

 

Classified assets

 

179,883

 

 

 

169,822

 

 

 

185,150

 

 

 

185,389

 

 

 

184,393

 

Nonperforming loans to total loans

 

0.26

%

 

 

0.36

%

 

 

0.32

%

 

 

0.40

%

 

 

0.46

%

Nonperforming assets to total assets

 

0.22

%

 

 

0.33

%

 

 

0.30

%

 

 

0.34

%

 

 

0.40

%

Allowance for credit losses to total loans

 

1.26

%

 

 

1.27

%

 

 

1.23

%

 

 

1.24

%

 

 

1.34

%

Allowance for credit losses to total loans, excluding guaranteed loans

 

1.38

%

 

 

1.38

%

 

 

1.34

%

 

 

1.35

%

 

 

1.47

%

Allowance for credit losses to nonperforming loans

 

492.6

%

 

 

354.1

%

 

 

380.2

%

 

 

308.2

%

 

 

290.5

%

Net charge-offs to average loans -annualized

 

0.14

%

 

 

0.02

%

 

 

0.22

%

 

 

1.06

%

 

 

0.26

%

 

 

 

 

 

 

 

 

 

 

WEALTH MANAGEMENT

 

 

 

 

 

 

 

 

 

Trust assets under management

$

2,499,807

 

 

$

2,367,409

 

 

$

2,352,902

 

 

$

2,235,073

 

 

$

2,129,408

 

 

 

 

 

 

 

 

 

 

 

SHARE DATA

 

 

 

 

 

 

 

 

 

Book value per common share

$

47.33

 

 

$

45.08

 

 

$

44.24

 

 

$

43.94

 

 

$

41.19

 

Tangible book value per common share1

$

37.26

 

 

$

35.02

 

 

$

34.21

 

 

$

33.85

 

 

$

31.06

 

Market value per share

$

51.26

 

 

$

40.91

 

 

$

40.56

 

 

$

44.65

 

 

$

37.50

 

Period end common shares outstanding

 

37,184

 

 

 

37,344

 

 

 

37,515

 

 

 

37,416

 

 

 

37,385

 

Average basic common shares

 

37,337

 

 

 

37,485

 

 

 

37,490

 

 

 

37,421

 

 

 

37,405

 

Average diluted common shares

 

37,483

 

 

 

37,540

 

 

 

37,597

 

 

 

37,554

 

 

 

37,520

 

 

 

 

 

 

 

 

 

 

 

CAPITAL

 

 

 

 

 

 

 

 

 

Total risk-based capital to risk-weighted assets2

 

14.8

%

 

 

14.6

%

 

 

14.3

%

 

 

14.2

%

 

 

14.1

%

Tier 1 capital to risk-weighted assets2

 

13.2

%

 

 

13.0

%

 

 

12.8

%

 

 

12.7

%

 

 

12.6

%

Common equity tier 1 capital to risk-weighted assets2

 

11.9

%

 

 

11.7

%

 

 

11.4

%

 

 

11.3

%

 

 

11.2

%

Tangible common equity to tangible assets1

 

9.50

%

 

 

9.18

%

 

 

9.01

%

 

 

8.96

%

 

 

8.51

%

 

 

 

 

 

 

 

 

 

 

1Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.

2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

 

Quarter ended

 

Nine months ended

($ in thousands)

Sep 30,

2024

 

Jun 30,

2024

 

Mar 31,

2024

 

Dec 31,

2023

 

Sep 30,

2023

 

Sep 30,

2024

 

Sep 30,

2023

CORE EFFICIENCY RATIO

 

 

 

 

Net interest income (GAAP)

$

143,469

 

 

$

140,529

 

 

$

137,728

 

 

$

140,732

 

 

$

141,639

 

 

$

421,726

 

 

$

421,860

 

Tax-equivalent adjustment

 

2,086

 

 

 

2,047

 

 

 

2,040

 

 

 

1,915

 

 

 

2,061

 

 

 

6,173

 

 

 

6,164

 

Noninterest income (GAAP)

 

21,420

 

 

 

15,494

 

 

 

12,158

 

 

 

25,452

 

 

 

12,085

 

 

 

49,072

 

 

 

43,273

 

Less gain on sale of investment securities

 

 

 

 

 

 

 

 

 

 

220

 

 

 

 

 

 

 

 

 

381

 

Less gain (loss) on sale of other real estate owned

 

3,159

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

3,157

 

 

 

187

 

Core revenue (non-GAAP)

 

163,816

 

 

 

158,070

 

 

 

151,928

 

 

 

167,879

 

 

 

155,785

 

 

 

473,814

 

 

 

470,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

98,007

 

 

 

94,017

 

 

 

93,501

 

 

 

92,603

 

 

 

88,644

 

 

 

285,525

 

 

 

255,583

 

Less FDIC special assessment

 

 

 

 

 

 

 

625

 

 

 

2,412

 

 

 

 

 

 

625

 

 

 

 

Less core conversion expense

 

1,375

 

 

 

1,250

 

 

 

350

 

 

 

 

 

 

 

 

 

2,975

 

 

 

 

Less amortization on intangibles

 

927

 

 

 

944

 

 

 

1,047

 

 

 

1,108

 

 

 

1,118

 

 

 

2,918

 

 

 

3,493

 

Core noninterest expense (non-GAAP)

$

95,705

 

 

$

91,823

 

 

$

91,479

 

 

$

89,083

 

 

$

87,526

 

 

$

279,007

 

 

$

252,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core efficiency ratio (non-GAAP)

 

58.42

%

 

 

58.09

%

 

 

60.21

%

 

 

53.06

%

 

 

56.18

%

 

 

58.89

%

 

 

53.55

%

 

Quarter ended

(in thousands, except per share data)

Sep 30,

2024

 

Jun 30,

2024

 

Mar 31,

2024

 

Dec 31,

2023

 

Sep 30,

2023

TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO

Shareholders’ equity (GAAP)

$

1,832,011

 

 

$

1,755,273

 

 

$

1,731,725

 

 

$

1,716,068

 

 

$

1,611,880

 

Less preferred stock

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

Less goodwill

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

Less intangible assets

 

9,400

 

 

 

10,327

 

 

 

11,271

 

 

 

12,318

 

 

 

13,425

 

Tangible common equity (non-GAAP)

$

1,385,459

 

 

$

1,307,794

 

 

$

1,283,302

 

 

$

1,266,598

 

 

$

1,161,303

 

Less net unrealized losses on HTM securities, after tax

 

34,856

 

 

 

52,220

 

 

 

47,822

 

 

 

41,038

 

 

 

81,367

 

Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP)

$

1,350,603

 

 

$

1,255,574

 

 

$

1,235,480

 

 

$

1,225,560

 

 

$

1,079,936

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

37,184

 

 

 

37,344

 

 

 

37,515

 

 

 

37,416

 

 

 

37,385

 

Tangible book value per share (non-GAAP)

$

37.26

 

 

$

35.02

 

 

$

34.21

 

 

$

33.85

 

 

$

31.06

 

 

 

 

 

 

 

 

 

 

 

Total assets (GAAP)

$

14,954,125

 

 

$

14,615,666

 

 

$

14,613,338

 

 

$

14,518,590

 

 

$

14,025,042

 

Less goodwill

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

Less intangible assets

 

9,400

 

 

 

10,327

 

 

 

11,271

 

 

 

12,318

 

 

 

13,425

 

Tangible assets (non-GAAP)

$

14,579,561

 

 

$

14,240,175

 

 

$

14,236,903

 

 

$

14,141,108

 

 

$

13,646,453

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets (non-GAAP)

 

9.50

%

 

 

9.18

%

 

 

9.01

%

 

 

8.96

%

 

 

8.51

%

Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP)

 

9.26

%

 

 

8.82

%

 

 

8.68

%

 

 

8.67

%

 

 

7.91

%

 

Quarter Ended

 

Nine months ended

($ in thousands)

Sep 30,

2024

 

Jun 30,

2024

 

Mar 31,

2024

 

Dec 31,

2023

 

Sep 30,

2023

 

Sep 30,

2024

 

Sep 30,

2023

RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED EARNINGS PER SHARE

Average shareholder’s equity (GAAP)

$

1,804,369

 

 

$

1,748,240

 

 

$

1,738,698

 

 

$

1,652,882

 

 

$

1,648,605

 

 

$

1,763,917

 

 

$

1,613,091

 

Less average preferred stock

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

Less average goodwill

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

Less average intangible assets

 

9,855

 

 

 

10,783

 

 

 

11,770

 

 

 

12,858

 

 

 

13,967

 

 

 

10,799

 

 

 

15,094

 

Average tangible common equity (non-GAAP)

$

1,357,362

 

 

$

1,300,305

 

 

$

1,289,776

 

 

$

1,202,872

 

 

$

1,197,486

 

 

$

1,315,966

 

 

$

1,160,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

50,585

 

 

$

45,446

 

 

$

40,401

 

 

$

44,529

 

 

$

44,665

 

 

$

136,432

 

 

$

149,530

 

FDIC special assessment (after tax)

 

 

 

 

 

 

 

470

 

 

 

1,814

 

 

 

 

 

 

470

 

 

 

 

Core conversion expense (after tax)

 

1,034

 

 

 

940

 

 

 

263

 

 

 

 

 

 

 

 

 

2,237

 

 

 

 

Less gain on sale of investment securities (after tax)

 

 

 

 

 

 

 

 

 

 

165

 

 

 

 

 

 

 

 

 

287

 

Less gain (loss) on sales of other real estate owned (after tax)

 

2,375

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

2,374

 

 

 

141

 

Net income adjusted (non-GAAP)

$

49,244

 

 

$

46,386

 

 

$

41,135

 

 

$

46,178

 

 

$

44,665

 

 

$

136,765

 

 

$

149,102

 

Less preferred stock dividends

 

938

 

 

 

937

 

 

 

938

 

 

 

937

 

 

 

938

 

 

 

2,813

 

 

 

2,813

 

Net income available to common shareholders adjusted (non-GAAP)

$

48,306

 

 

$

45,449

 

 

$

40,197

 

 

$

45,241

 

 

$

43,727

 

 

$

133,952

 

 

$

146,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average common equity (non-GAAP)

 

11.40

%

 

 

10.68

%

 

 

9.52

%

 

 

10.94

%

 

 

11.00

%

 

 

10.55

%

 

 

12.73

%

Adjusted return on average common equity (non-GAAP)

 

11.09

%

 

 

10.90

%

 

 

9.70

%

 

 

11.35

%

 

 

11.00

%

 

 

10.58

%

 

 

12.69

%

ROATCE (non-GAAP)

 

14.55

%

 

 

13.77

%

 

 

12.31

%

 

 

14.38

%

 

 

14.49

%

 

 

13.56

%

 

 

16.90

%

Adjusted ROATCE (non-GAAP)

 

14.16

%

 

 

14.06

%

 

 

12.53

%

 

 

14.92

%

 

 

14.49

%

 

 

13.60

%

 

 

16.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

$

14,849,455

 

 

$

14,646,381

 

 

$

14,556,119

 

 

$

14,332,804

 

 

$

14,068,860

 

 

$

14,684,589

 

 

$

13,627,448

 

Return on average assets (GAAP)

 

1.36

%

 

 

1.25

%

 

 

1.12

%

 

 

1.23

%

 

 

1.26

%

 

 

1.24

%

 

 

1.47

%

Adjusted return on average assets (non-GAAP)

 

1.32

%

 

 

1.27

%

 

 

1.14

%

 

 

1.28

%

 

 

1.26

%

 

 

1.24

%

 

 

1.46

%

Average diluted common shares

 

37,483

 

 

 

37,540

 

 

 

37,597

 

 

 

37,554

 

 

 

37,520

 

 

 

37,547

 

 

 

37,493

 

Diluted earnings per share (GAAP)

$

1.32

 

 

$

1.19

 

 

$

1.05

 

 

$

1.16

 

 

$

1.17

 

 

$

3.56

 

 

$

3.91

 

Adjusted diluted earnings per share (non-GAAP)

$

1.29

 

 

$

1.21

 

 

$

1.07

 

 

$

1.20

 

 

$

1.17

 

 

$

3.57

 

 

$

3.90

 

 

Quarter ended

($ in thousands)

Sep 30,

2024

 

Jun 30,

2024

 

Mar 31,

2024

 

Dec 31,

2023

 

Sep 30,

2023

CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)

Net interest income

$

143,469

 

$

140,529

 

$

137,728

 

 

$

140,732

 

$

141,639

Noninterest income

 

21,420

 

 

15,494

 

 

12,158

 

 

 

25,452

 

 

12,085

FDIC special assessment

 

 

 

 

 

625

 

 

 

2,412

 

 

Core conversion expense

 

1,375

 

 

1,250

 

 

350

 

 

 

 

 

Less gain on sale of investment securities

 

 

 

 

 

 

 

 

220

 

 

Less gain (loss) on sales of other real estate owned

 

3,159

 

 

 

 

(2

)

 

 

 

 

Less noninterest expense

 

98,007

 

 

94,017

 

 

93,501

 

 

 

92,603

 

 

88,644

PPNR (non-GAAP)

$

65,098

 

$

63,256

 

$

57,362

 

 

$

75,773

 

$

65,080

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

($ in thousands)

Sep 30,

2024

 

Jun 30,

2024

CALCULATION OF ESTIMATED INSURED DEPOSITS

 

 

 

Estimated uninsured deposits per Call Report

$

4,180,066

 

 

$

4,020,979

 

Collateralized/affiliate deposits

 

(463,103

)

 

 

(454,084

)

Accrued interest on deposits

 

(5,830

)

 

 

(5,632

)

Adjusted uninsured/uncollateralized deposits

 

3,711,133

 

 

 

3,561,263

 

Estimated insured/collateralized deposits

 

8,754,189

 

 

 

8,721,120

 

Total deposits

$

12,465,322

 

 

$

12,282,383

 

 

Contacts

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

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

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