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Enterprise Financial Reports Second Quarter 2023 Results

Second Quarter Results

  • Net income of $49.1 million, $1.29 per diluted common share
  • Net interest margin of 4.49%, quarterly decrease of 22 basis points
  • Net interest income of $140.7 million, quarterly increase of $1.2 million
  • Total loans of $10.5 billion, quarterly increase of $500.7 million
  • Total deposits of $11.6 billion, quarterly increase of $465.2 million
  • Tangible common equity to tangible assets1 of 8.65%

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 am pleased with our strong financial performance in the second quarter and our associates continued commitment to our customers and communities. We had significant loan growth across our geographic regions and business lines, building on the momentum from the first quarter. This increase in average loans has helped accelerate interest income to mitigate the effect of rising deposit interest expense. We remain focused on executing our strategic initiatives, including a focus on customer engagement and onboarding to support deposit growth and operational efficiencies.”

Highlights

  • Earnings - Net income in the second quarter 2023 was $49.1 million, a decrease of $6.6 million, compared to the linked quarter and an increase of $4.0 million from the prior year quarter. Earnings per share (“EPS”) was $1.29 per diluted common share for the second quarter 2023, compared to $1.46 and $1.19 per diluted common share for the linked and prior year quarters, respectively.
  • Pre-provision net revenue2 (“PPNR”) - PPNR of $68.9 million in the second quarter 2023 decreased $6.0 million from the linked quarter and increased $10.5 million from the prior year quarter.
  • Net interest income and net interest margin (“NIM”) - Net interest income of $140.7 million for the second quarter 2023 increased $1.2 million and $31.1 million from the linked and prior year quarters, respectively. NIM was 4.49% for the second quarter 2023, compared to 4.71% and 3.55% for the linked and prior year quarters, respectively. Net interest income and NIM benefited from higher average loan and investment balances combined with expanding yields on earning assets. NIM decreased 22 basis points from the linked quarter, primarily due to the increase in deposit interest expense.
  • Noninterest income - Noninterest income of $14.3 million for the second quarter 2023 decreased $2.6 million and increased $0.1 million from the linked quarter and the prior year quarter, respectively. The decline from the linked quarter was primarily due to decreases in tax credit income and in gains on the sale of investment securities and SBA loans.
  • Noninterest expense - Noninterest expense of $86.0 million for the second quarter 2023 increased $5.0 million and $20.5 million from the linked quarter and the prior year quarter, respectively. The increase from both the linked and prior year quarters was primarily due to an increase in variable deposit costs and operational losses. An increase in employee compensation also contributed to the increase from the prior year quarter.
  • Loans - Loans totaled $10.5 billion at June 30, 2023, an increase of $500.7 million, or 20.1% on an annualized basis, from the linked quarter and an increase of $1.2 billion from the prior year period. Average loans totaled $10.3 billion for the quarter ended June 30, 2023, compared to $9.8 billion and $9.1 billion for the linked and prior year quarters, respectively.
  • Asset quality - The allowance for credit losses to total loans was 1.34% at June 30, 2023, compared to 1.38% at March 31, 2023 and 1.52% at June 30, 2022. Nonperforming assets to total assets was 0.12% at June 30, 2023, compared to 0.09% and 0.16% at March 31, 2023 and June 30, 2022, respectively. The provision for credit losses of $6.3 million recorded in the second quarter 2023 was primarily related to loan growth, net charge-offs and a change in economic factors.
  • Deposits - Total deposits increased $465.2 million from the linked quarter to $11.6 billion as of June 30, 2023. Total estimated insured deposits, which includes collateralized deposits and accounts that qualify for pass through insurance, totaled $8.3 billion at June 30, 2023. Average deposits totaled $11.4 billion for the quarter ended June 30, 2023, compared to $10.9 billion and $11.5 billion for the linked and prior year quarters, respectively. At June 30, 2023, noninterest-bearing deposit accounts totaled $3.9 billion, or 33.4% of total deposits, and the loan to deposit ratio was 90.5%.
  • Liquidity - The Company’s total available on- and off-balance-sheet liquidity was approximately $4.5 billion at June 30, 2023. On-balance-sheet liquidity consisted of cash of $322.0 million and unpledged investment securities with a fair value of $647.3 million at June 30, 2023. Off-balance-sheet liquidity consisted of $764.1 million available through the Federal Home Loan Bank, $2.6 billion 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 $1.6 billion and the tangible common equity to tangible assets ratio3 was 8.65% at June 30, 2023, compared to 8.81% at March 31, 2023. The tangible common equity to tangible assets ratio, adjusted for unrealized losses on held-to-maturity securities,3 was 8.25% at June 30, 2023 and 8.43% at March 31, 2023. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.0% and a total risk-based capital ratio of 13.0% as of June 30, 2023. The Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.1% and 14.1%, respectively, at June 30, 2023.

The Company’s Board of Directors approved a quarterly dividend of $0.25 per common share, payable on September 29, 2023 to shareholders of record as of September 15, 2023. 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, 2023 to (but excluding) September 15, 2023. The dividend will be payable on September 15, 2023 to holders of record of Series A Preferred Stock as of August 31, 2023.

Net Interest Income and NIM

Average Balance Sheets

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

 

Quarter ended

 

June 30, 2023

 

March 31, 2023

 

June 30, 2022

($ 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

$

10,284,873

 

$

170,314

 

6.64

%

 

$

9,795,045

 

$

152,762

 

6.33

%

 

$

9,109,131

 

$

102,328

 

4.51

%

Securities2

 

2,297,995

 

 

17,550

 

3.06

 

 

 

2,288,451

 

 

17,117

 

3.03

 

 

 

2,068,119

 

 

12,944

 

2.51

 

Interest-earning deposits

 

173,785

 

 

2,095

 

4.84

 

 

 

106,254

 

 

1,195

 

4.56

 

 

 

1,401,961

 

 

2,496

 

0.71

 

Total interest-earning assets

 

12,756,653

 

 

189,959

 

5.97

 

 

 

12,189,750

 

 

171,074

 

5.69

 

 

 

12,579,211

 

 

117,768

 

3.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

915,332

 

 

 

 

 

 

941,445

 

 

 

 

 

 

949,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

13,671,985

 

 

 

 

 

$

13,131,195

 

 

 

 

 

$

13,528,474

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

$

2,509,805

 

$

10,120

 

1.62

%

 

$

2,201,910

 

$

5,907

 

1.09

%

 

$

2,329,431

 

$

659

 

0.11

%

Money market accounts

 

2,920,079

 

 

20,499

 

2.82

 

 

 

2,826,836

 

 

15,471

 

2.22

 

 

 

2,767,595

 

 

2,270

 

0.33

 

Savings accounts

 

686,973

 

 

227

 

0.13

 

 

 

732,256

 

 

230

 

0.13

 

 

 

854,860

 

 

70

 

0.03

 

Certificates of deposit

 

1,219,500

 

 

10,526

 

3.46

 

 

 

670,521

 

 

3,053

 

1.85

 

 

 

591,091

 

 

851

 

0.58

 

Total interest-bearing deposits

 

7,336,357

 

 

41,372

 

2.26

 

 

 

6,431,523

 

 

24,661

 

1.56

 

 

 

6,542,977

 

 

3,850

 

0.24

 

Subordinated debentures and notes

 

155,632

 

 

2,431

 

6.27

 

 

 

155,497

 

 

2,409

 

6.28

 

 

 

155,092

 

 

2,257

 

5.84

 

FHLB advances

 

98,912

 

 

1,279

 

5.19

 

 

 

110,928

 

 

1,332

 

4.87

 

 

 

50,000

 

 

197

 

1.58

 

Securities sold under agreements to repurchase

 

162,606

 

 

704

 

1.74

 

 

 

215,604

 

 

749

 

1.41

 

 

 

202,537

 

 

41

 

0.08

 

Other borrowings

 

133,770

 

 

1,419

 

4.25

 

 

 

53,885

 

 

353

 

2.66

 

 

 

21,413

 

 

111

 

2.08

 

Total interest-bearing liabilities

 

7,887,277

 

 

47,205

 

2.40

 

 

 

6,967,437

 

 

29,504

 

1.72

 

 

 

6,972,019

 

 

6,456

 

0.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

4,051,456

 

 

 

 

 

 

4,481,966

 

 

 

 

 

 

4,987,455

 

 

 

 

Other liabilities

 

111,915

 

 

 

 

 

 

113,341

 

 

 

 

 

 

94,733

 

 

 

 

Total liabilities

 

12,050,648

 

 

 

 

 

 

11,562,744

 

 

 

 

 

 

12,054,207

 

 

 

 

Shareholders' equity

 

1,621,337

 

 

 

 

 

 

1,568,451

 

 

 

 

 

 

1,474,267

 

 

 

 

Total liabilities and shareholders' equity

$

13,671,985

 

 

 

 

 

$

13,131,195

 

 

 

 

 

$

13,528,474

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net interest income

 

 

$

142,754

 

 

 

 

 

$

141,570

 

 

 

 

 

$

111,312

 

 

Net interest margin

 

 

 

 

4.49

%

 

 

 

 

 

4.71

%

 

 

 

 

 

3.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Average balances include nonaccrual loans. Interest income includes loan fees of $3.7 million, $3.7 million, and $4.2 million for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a 25.2% tax rate. The tax-equivalent adjustments were $2.1 million, $2.0 million, and $1.7 million for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, respectively.

 

Net interest income (on a tax equivalent basis) for the second quarter 2023 was $142.8 million, an increase of $1.2 million, compared to the linked quarter and an increase of $31.4 million from the prior year period. The increase from the linked and prior year quarters reflects the benefit of higher market interest rates on the Company’s asset sensitive balance sheet combined with organic growth.

Interest income increased $18.9 million during the second quarter 2023 primarily due to an increase of $17.6 million in loan interest income from continued loan growth and higher loan yields. Interest on loans benefited from a 31 basis point increase in yield and a $489.8 million increase in average loans, compared to the linked quarter. The average interest rate of new loan originations in the second quarter 2023 was 7.60%.

Interest expense increased $17.7 million in the second quarter 2023 primarily due to a $16.7 million increase in deposit interest expense and a $1.0 million increase in interest expense on other borrowings. The increase in deposit interest expense reflects a shift in the deposit mix from demand deposits and interest-bearing demand deposits to money market accounts and certificates of deposit, as well as higher rates paid on deposits. The average cost of interest-bearing deposits was 2.26%, an increase of 70 basis points over the linked quarter. The increase was primarily due to higher rates paid on certificates of deposit and commercial money market accounts, which increased 161 basis points and 60 basis points, respectively, in addition to a higher average certificate of deposit balance. The total cost of deposits, including noninterest-bearing demand accounts, was 1.46% during the second quarter 2023, compared to 0.92% in the linked quarter. The increase in interest expense on other borrowings was primarily from higher average borrowings to increase on-balance-sheet liquidity primarily due to the uncertain impact of the federal government debt ceiling debate.

NIM, on a tax equivalent basis, was 4.49% in the second quarter 2023, a decrease of 22 basis points from the linked quarter and an increase of 94 basis points from the prior year quarter. For the month of June 2023, the loan portfolio yield was 6.74% and the cost of total deposits was 1.60%.

Investments

 

Quarter ended

 

June 30, 2023

 

March 31, 2023

 

June 30, 2022

($ in thousands)

Carrying

Value

 

Net

Unrealized

Loss

 

Carrying

Value

 

Net

Unrealized

Loss

 

Carrying

Value

 

Net

Unrealized

Loss

Available-for-sale (AFS)

$

1,550,375

 

$

(179,857

)

 

$

1,555,109

 

$

(161,572

)

 

$

1,493,277

 

$

(165,135

)

Held-to-maturity (HTM)

 

723,959

 

 

(71,673

)

 

 

720,694

 

 

(65,013

)

 

 

617,767

 

 

(80,899

)

Total

$

2,274,334

 

$

(251,530

)

 

$

2,275,803

 

$

(226,585

)

 

$

2,111,044

 

$

(246,034

)

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities totaled $2.3 billion at June 30, 2023, a decrease of $1.5 million from the linked quarter. The decrease was primarily due to an $18.3 million increase in the unrealized loss on available-for-sale securities due to a decline in longer-term rates in the quarter. The increase in the unrealized loss was partially offset by new investment purchases from the reinvestment of cash flows on the portfolio in the current quarter. Investment purchases in the second quarter 2023 had a weighted average, tax equivalent yield of 5.07%.

The average duration of the investment portfolio was 5.3 years at June 30, 2023. Due to the shorter average duration of the loan portfolio, of approximately 3 years, the Company leverages the investment portfolio to lengthen the overall duration of the balance sheet, primarily using high-quality municipal securities. The expected cash flow from pay downs, maturities and interest over the next 12 months is approximately $270 million. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities4 was 8.25% at June 30, 2023, compared to 8.43% at March 31, 2023.

Loans

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

 

Quarter ended

($ in thousands)

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

C&I

$

2,029,370

 

 

$

2,005,539

 

 

$

1,904,654

 

 

$

1,780,677

 

 

$

1,641,740

 

CRE investor owned

 

2,290,701

 

 

 

2,239,932

 

 

 

2,176,424

 

 

 

2,106,458

 

 

 

1,977,806

 

CRE owner occupied

 

1,208,675

 

 

 

1,173,985

 

 

 

1,174,094

 

 

 

1,133,467

 

 

 

1,118,895

 

SBA loans*

 

1,327,667

 

 

 

1,315,732

 

 

 

1,312,378

 

 

 

1,269,065

 

 

 

1,284,279

 

Sponsor finance*

 

879,491

 

 

 

677,529

 

 

 

635,061

 

 

 

650,102

 

 

 

647,180

 

Life insurance premium financing*

 

912,274

 

 

 

859,910

 

 

 

817,115

 

 

 

779,606

 

 

 

748,376

 

Tax credits*

 

609,137

 

 

 

547,513

 

 

 

559,605

 

 

 

507,681

 

 

 

550,662

 

SBA PPP loans

 

5,173

 

 

 

5,438

 

 

 

7,272

 

 

 

13,165

 

 

 

49,175

 

Residential real estate

 

354,588

 

 

 

348,726

 

 

 

379,924

 

 

 

381,634

 

 

 

391,867

 

Construction and land development

 

599,375

 

 

 

590,509

 

 

 

534,753

 

 

 

513,452

 

 

 

626,577

 

Other

 

296,172

 

 

 

247,105

 

 

 

235,858

 

 

 

219,680

 

 

 

232,619

 

Total loans

$

10,512,623

 

 

$

10,011,918

 

 

$

9,737,138

 

 

$

9,354,987

 

 

$

9,269,176

 

 

 

 

 

 

 

 

 

 

 

Total loan yield

 

6.64

%

 

 

6.33

%

 

 

5.87

%

 

 

5.10

%

 

 

4.51

%

Variable interest rate loans to total loans

 

62

%

 

 

63

%

 

 

63

%

 

 

63

%

 

 

64

%

 

*Specialty loan category

 

Loans totaled $10.5 billion at June 30, 2023, increasing $500.7 million, compared to the linked quarter. The increase was broad based across geographic regions and lines of business, particularly within the sponsor finance specialty area. Average line utilization was approximately 45% for the second quarter 2023, compared to 42% and 44% for the linked and prior year quarters, respectively. The weighted average life of the loan portfolio is approximately 3 years at June 30, 2023.

Asset Quality

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

 

Quarter ended

($ in thousands)

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

Nonperforming loans*

$

16,112

 

 

$

11,972

 

 

$

9,981

 

 

$

18,184

 

 

$

19,560

 

Other

 

 

 

 

250

 

 

 

269

 

 

 

269

 

 

 

955

 

Nonperforming assets*

$

16,112

 

 

$

12,222

 

 

$

10,250

 

 

$

18,453

 

 

$

20,515

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

0.15

%

 

 

0.12

%

 

 

0.10

%

 

 

0.19

%

 

 

0.21

%

Nonperforming assets to total assets

 

0.12

%

 

 

0.09

%

 

 

0.08

%

 

 

0.14

%

 

 

0.16

%

Allowance for credit losses to total loans

 

1.34

%

 

 

1.38

%

 

 

1.41

%

 

 

1.50

%

 

 

1.52

%

Net charge-offs (recoveries)

$

2,973

 

 

$

(264

)

 

$

2,075

 

 

$

478

 

 

$

(175

)

 

 

 

 

 

 

 

 

 

 

*Guaranteed balances excluded

$

6,666

 

 

$

6,835

 

 

$

6,708

 

 

$

6,532

 

 

$

6,063

 

 

Nonperforming assets increased $3.9 million during the second quarter 2023 and decreased $4.4 million from the prior year quarter. The increase from the linked quarter was primarily related to the addition of one credit relationship that was partially written down in the period. Annualized net charge-offs totaled 12 basis points of average loans in the second quarter 2023, compared to a net recovery of one basis point in the linked and prior year quarters.

The provision for credit losses totaled $6.3 million in the second quarter 2023, compared to $4.2 million and $0.7 million in the linked quarter and prior year quarter, respectively. The provision for credit losses in the second quarter 2023 was primarily related to loan growth, net charge-offs, and a change in forecasted economic factors. The provision in the linked quarter was primarily related to the impairment of an available-for-sale investment security of a failed bank and loan growth. The allowance for credit losses to total loans was 1.34% at June 30, 2023, compared to 1.38% and 1.52% in the linked and prior year quarters, respectively, and is reflective of the trend in credit quality.

Deposits

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

 

Quarter ended

($ in thousands)

June 30,

2023

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

Noninterest-bearing demand accounts

$

3,880,561

 

 

$

4,192,523

 

 

$

4,642,732

 

 

$

4,642,539

 

 

$

4,746,478

 

Interest-bearing demand accounts

 

2,629,339

 

 

 

2,395,901

 

 

 

2,256,295

 

 

 

2,270,898

 

 

 

2,197,957

 

Money market and savings accounts

 

3,577,856

 

 

 

3,672,539

 

 

 

3,399,415

 

 

 

3,617,249

 

 

 

3,562,982

 

Brokered certificates of deposit

 

893,808

 

 

 

369,505

 

 

 

118,968

 

 

 

129,039

 

 

 

129,064

 

Other certificates of deposit

 

638,296

 

 

 

524,168

 

 

 

411,740

 

 

 

397,869

 

 

 

456,137

 

Total deposit portfolio

$

11,619,860

 

 

$

11,154,636

 

 

$

10,829,150

 

 

$

11,057,594

 

 

$

11,092,618

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits to total deposits

 

33.4

%

 

 

37.6

%

 

 

42.9

%

 

 

42.0

%

 

 

42.8

%

Total costs of deposits

 

1.46

%

 

 

0.92

%

 

 

0.53

%

 

 

0.31

%

 

 

0.13

%

 

Total deposits at June 30, 2023 were $11.6 billion, an increase of $465.2 million and $527.2 million from the linked quarter and prior year quarter, respectively. The increase from the linked quarter includes $524.3 million in brokered certificates of deposit that are a stable funding source to support loan growth. This strategy helped preserve wholesale borrowing capacity and liquidity measures. The mix of the deposit portfolio continued the shift from noninterest bearing demand deposits to higher yielding categories that began in the first quarter 2023. Competitive pricing pressures and the Federal Reserve’s monetary policy actions have continued to pressure industry-wide deposit flows. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $926.6 million at June 30, 2023, compared to $486.7 million at March 31, 2023.

Total estimated insured deposits, which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled $8.3 billion, or 72% of total deposits, at the end of June 30, 2023, compared to $7.7 billion, or 69% of total deposits, in the linked quarter.

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)

June 30,

2023

 

March 31,

2023

 

Increase

(decrease)

 

June 30,

2022

 

Increase

(decrease)

Deposit service charges

 

3,910

 

 

4,128

 

$

(218

)

 

(5

)%

 

 

4,749

 

$

(839

)

 

(18

)%

Wealth management revenue

 

2,472

 

 

2,516

 

 

(44

)

 

(2

)%

 

 

2,533

 

 

(61

)

 

(2

)%

Card services revenue

 

2,464

 

 

2,338

 

 

126

 

 

5

%

 

 

3,514

 

 

(1,050

)

 

(30

)%

Tax credit income

 

368

 

 

1,813

 

 

(1,445

)

 

(80

)%

 

 

1,186

 

 

(818

)

 

(69

)%

Other income

 

5,076

 

 

6,103

 

 

(1,027

)

 

(17

)%

 

 

2,212

 

 

2,864

 

 

129

%

Total noninterest income

$

14,290

 

$

16,898

 

$

(2,608

)

 

(15

)%

 

$

14,194

 

$

96

 

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income was $14.3 million for the current quarter, a decrease of $2.6 million from the linked quarter and stable with the prior year quarter. The $2.6 million decrease from the linked quarter was primarily due to decreases in tax credit income and other income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The decrease in other income was primarily due to gains on the sale of investment securities and SBA loans in the linked quarter that did not reoccur in the second quarter 2023.

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)

June 30,

2023

 

March 31,

2023

 

Increase

(decrease)

 

June 30,

2022

 

Increase

(decrease)

BOLI

$

797

 

$

791

 

$

6

 

 

1

%

 

$

748

 

$

49

 

7

%

Community development investments

 

2,077

 

 

595

 

 

1,482

 

 

249

%

 

 

193

 

 

1,884

 

976

%

Private equity fund distribution

 

371

 

 

1,749

 

 

(1,378

)

 

(79

)%

 

 

240

 

 

131

 

55

%

Servicing fees

 

407

 

 

512

 

 

(105

)

 

(21

)%

 

 

165

 

 

242

 

147

%

Swap fees

 

173

 

 

250

 

 

(77

)

 

(31

)%

 

 

102

 

 

71

 

70

%

Miscellaneous income

 

1,251

 

 

2,206

 

 

(955

)

 

(43

)%

 

 

764

 

 

487

 

64

%

Total other income

$

5,076

 

$

6,103

 

$

(1,027

)

 

(17

)%

 

$

2,212

 

$

2,864

 

129

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Community development and private equity distributions included in other income are not consistent sources of income and fluctuate based on distributions from the underlying funds. Servicing fee income may also fluctuate based on prepayment experience and changes to the discount rate used in the valuation of the servicing rights. Swap fee income is generated from customer hedging activities and varies based on customer transaction volume. The decrease in miscellaneous income from the linked quarter was primarily due to the gains on the sale of SBA loans and investment securities that were recognized in the linked quarter.

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)

June 30,

2023

 

March 31,

2023

 

Increase

(decrease)

 

June 30,

2022

 

Increase

(decrease)

Employee compensation and benefits

$

41,641

 

$

42,503

 

$

(862

)

 

(2

)%

 

$

36,028

 

$

5,613

 

 

16

%

Occupancy

 

3,954

 

 

4,061

 

(107

)

 

(3

)%

 

 

4,309

 

 

(355

)

 

(8

)%

Deposit costs

 

16,980

 

 

12,720

 

 

4,260

 

 

33

%

 

 

5,905

 

 

11,075

 

 

188

%

Other expense

 

23,381

 

 

21,699

 

 

1,682

 

 

8

%

 

 

19,182

 

 

4,199

 

 

22

%

Total noninterest expense

$

85,956

 

$

80,983

 

$

4,973

 

 

6

%

 

$

65,424

 

$

20,532

 

 

31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits decreased $0.9 million from the linked quarter due to a $2.8 million decrease in benefits, primarily employer payroll taxes and 401(k) expense that are seasonally higher in the first quarter each year. The decrease in benefits was partially offset by a $1.9 million increase in salaries and variable compensation due to a full quarter of merit increases that became effective on March 1, 2023, and an expanded associate base. Deposit costs relate to certain specialized deposit businesses that are impacted by higher interest rates as well as increasing average balances. Deposit costs increased $4.3 million from the linked quarter primarily due to higher average balances and an increase in expenses related to the earnings credit earned on these accounts. The linked quarter deposit costs were also lower due to the expiration of certain earnings credits that were forfeited. Other expense increased $1.7 million from the linked quarter, primarily related to a $1.5 million increase in operational losses.

The increase in noninterest expense of $20.5 million from the prior year quarter was primarily an increase in the associate base, merit increases throughout 2022 and 2023, and an increase in variable deposit costs.

For the second quarter 2023, the Company’s core efficiency ratio5 was 54.0%, compared to 50.5% for the linked quarter and 51.0% for the prior year quarter.

Income Taxes

The Company’s effective tax rate was 22% for each of the current, linked and prior year quarters.

Capital

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

 

Quarter ended

($ in thousands)

June 30,

2023*

 

March 31,

2023

 

December 31,

2022

 

September 30,

2022

 

June 30,

2022

Shareholders’ equity

$

1,618,233

 

 

$

1,592,820

 

 

$

1,522,263

 

 

$

1,446,218

 

 

$

1,447,412

 

Total risk-based capital to risk-weighted assets

 

14.1

%

 

 

14.3

%

 

 

14.2

%

 

 

14.2

%

 

 

14.2

%

Tier 1 capital to risk weighted assets

 

12.5

%

 

 

12.6

%

 

 

12.6

%

 

 

12.6

%

 

 

12.5

%

Common equity tier 1 capital to risk-weighted assets

 

11.1

%

 

 

11.2

%

 

 

11.1

%

 

 

11.0

%

 

 

10.9

%

Leverage ratio

 

11.0

%

 

 

11.1

%

 

 

10.9

%

 

 

10.4

%

 

 

9.8

%

Tangible common equity to tangible assets

 

8.65

%

 

 

8.81

%

 

 

8.43

%

 

 

7.86

%

 

 

7.80

%

 

*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 $1.6 billion at June 30, 2023, an increase of $25.4 million from the linked quarter. The increase was primarily due to current period net income of $49.1 million. This increase was partially offset by a $17.5 million decrease in accumulated other comprehensive income, primarily due to a net fair value decrease in the Company’s fixed-rate, available-for-sale investment portfolio, and common and preferred stock dividends of $10.3 million. The Company’s tangible common book value per share was $31.23 at June 30, 2023, compared to $30.55 and $26.63 in the linked and prior year quarters, respectively.

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

________________________________

1 Tangible common equity to tangible assets and return on tangible common equity are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

2 Pre-provision net revenue is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

3 Tangible common equity to tangible assets ratio and the tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

4 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 these measures in the accompanying financial tables.

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

Use of Non-GAAP Financial Measures

The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, PPNR, ROATCE, PPNR return on average assets (“PPNR ROAA”), core efficiency ratio, 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, PPNR ROAA, core efficiency ratio, 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 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 25, 2023. During the call, management will review the second quarter 2023 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 1-888-550-5279 (Conference ID #7004515). A recorded replay of the conference call will be available on the website approximately two hours after the call’s completion. Visit https://bit.ly/EFSC2Q2023earnings to register. 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 $13.9 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” 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 Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, including the COVID-19 pandemic, and their effects on economic and business environments in which we operate, including the ongoing disruption to the financial market and other economic activity caused by the continuing COVID-19 pandemic, 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, 2022, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

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

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

 

Six months ended

(in thousands, except per share data)

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Sep 30,

2022

 

Jun 30,

2022

 

Jun 30,

2023

 

Jun 30,

2022

EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

140,692

 

 

$

139,529

 

 

$

138,835

 

 

$

124,290

 

 

$

109,613

 

 

$

280,221

 

 

$

210,778

 

Provision (benefit) for credit losses

 

6,339

 

 

 

4,183

 

 

 

2,123

 

 

 

676

 

 

 

658

 

 

 

10,522

 

 

 

(3,410

)

Noninterest income

 

14,290

 

 

 

16,898

 

 

 

16,873

 

 

 

9,454

 

 

 

14,194

 

 

 

31,188

 

 

 

32,835

 

Noninterest expense

 

85,956

 

 

 

80,983

 

 

 

77,149

 

 

 

68,843

 

 

 

65,424

 

 

 

166,939

 

 

 

128,224

 

Income before income tax expense

 

62,687

 

 

 

71,261

 

 

 

76,436

 

 

 

64,225

 

 

 

57,725

 

 

 

133,948

 

 

 

118,799

 

Income tax expense

 

13,560

 

 

 

15,523

 

 

 

16,435

 

 

 

14,025

 

 

 

12,576

 

 

 

29,083

 

 

 

25,957

 

Net income

 

49,127

 

 

 

55,738

 

 

 

60,001

 

 

 

50,200

 

 

 

45,149

 

 

 

104,865

 

 

 

92,842

 

Preferred stock dividends

 

937

 

 

 

938

 

 

 

937

 

 

 

937

 

 

 

938

 

 

 

1,875

 

 

 

2,167

 

Net income available to common shareholders

$

48,190

 

 

$

54,800

 

 

$

59,064

 

 

$

49,263

 

 

$

44,211

 

 

$

102,990

 

 

$

90,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

1.29

 

 

$

1.46

 

 

$

1.58

 

 

$

1.32

 

 

$

1.19

 

 

$

2.75

 

 

$

2.41

 

Return on average assets

 

1.44

%

 

 

1.72

%

 

 

1.83

%

 

 

1.51

%

 

 

1.34

%

 

 

1.58

%

 

 

1.38

%

Return on average common equity

 

12.48

%

 

 

14.85

%

 

 

16.52

%

 

 

13.74

%

 

 

12.65

%

 

 

13.64

%

 

 

12.76

%

ROATCE1

 

16.53

%

 

 

19.93

%

 

 

22.62

%

 

 

18.82

%

 

 

17.44

%

 

 

18.18

%

 

 

17.46

%

Net interest margin (tax equivalent)

 

4.49

%

 

 

4.71

%

 

 

4.66

%

 

 

4.10

%

 

 

3.55

%

 

 

4.60

%

 

 

3.41

%

Efficiency ratio

 

55.46

%

 

 

51.77

%

 

 

49.55

%

 

 

51.47

%

 

 

52.84

%

 

 

53.61

%

 

 

52.63

%

Core efficiency ratio1

 

54.04

%

 

 

50.47

%

 

 

48.10

%

 

 

49.80

%

 

 

51.03

%

 

 

52.25

%

 

 

50.82

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

$

10,512,623

 

 

$

10,011,918

 

 

$

9,737,138

 

 

$

9,354,987

 

 

$

9,269,176

 

 

 

 

 

Average loans

$

10,284,873

 

 

$

9,795,045

 

 

$

9,423,984

 

 

$

9,230,738

 

 

$

9,109,131

 

 

$

10,041,312

 

 

$

9,057,788

 

Assets

$

13,871,154

 

 

$

13,325,982

 

 

$

13,054,172

 

 

$

12,994,787

 

 

$

13,084,506

 

 

 

 

 

Average assets

$

13,671,985

 

 

$

13,131,195

 

 

$

12,986,568

 

 

$

13,158,121

 

 

$

13,528,474

 

 

$

13,403,084

 

 

$

13,571,002

 

Deposits

$

11,619,860

 

 

$

11,154,636

 

 

$

10,829,150

 

 

$

11,057,594

 

 

$

11,092,618

 

 

 

 

 

Average deposits

$

11,387,813

 

 

$

10,913,489

 

 

$

11,002,614

 

 

$

11,154,895

 

 

$

11,530,432

 

 

$

11,151,961

 

 

$

11,512,422

 

Period end common shares outstanding

 

37,359

 

 

 

37,311

 

 

 

37,253

 

 

 

37,223

 

 

 

37,206

 

 

 

 

 

Dividends per common share

$

0.25

 

 

$

0.25

 

 

$

0.24

 

 

$

0.23

 

 

$

0.22

 

 

$

0.50

 

 

$

0.43

 

Tangible book value per common share

$

31.23

 

 

$

30.55

 

 

$

28.67

 

 

$

26.62

 

 

$

26.63

 

 

 

 

 

Tangible common equity to tangible assets1

 

8.65

%

 

 

8.81

%

 

 

8.43

%

 

 

7.86

%

 

 

7.80

%

 

 

 

 

Total risk-based capital to risk-weighted assets2

 

14.1

%

 

 

14.3

%

 

 

14.2

%

 

 

14.2

%

 

 

14.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
 

 

Quarter ended

 

Six months ended

($ in thousands, except per share data)

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Sep 30,

2022

 

Jun 30,

2022

 

Jun 30,

2023

 

Jun 30,

2022

INCOME STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

187,897

 

$

169,033

 

$

156,737

 

$

135,695

 

 

$

116,069

 

$

356,930

 

$

222,650

 

Interest expense

 

47,205

 

 

29,504

 

 

17,902

 

 

11,405

 

 

 

6,456

 

 

76,709

 

 

11,872

 

Net interest income

 

140,692

 

 

139,529

 

 

138,835

 

 

124,290

 

 

 

109,613

 

 

280,221

 

 

210,778

 

Provision (benefit) for credit losses

 

6,339

 

 

4,183

 

 

2,123

 

 

676

 

 

 

658

 

 

10,522

 

 

(3,410

)

Net interest income after provision (benefit) for credit losses

 

134,353

 

 

135,346

 

 

136,712

 

 

123,614

 

 

 

108,955

 

 

269,699

 

 

214,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

3,910

 

 

4,128

 

 

4,463

 

 

4,951

 

 

 

4,749

 

 

8,038

 

 

8,912

 

Wealth management revenue

 

2,472

 

 

2,516

 

 

2,423

 

 

2,432

 

 

 

2,533

 

 

4,988

 

 

5,155

 

Card services revenue

 

2,464

 

 

2,338

 

 

2,345

 

 

2,652

 

 

 

3,514

 

 

4,802

 

 

6,554

 

Tax credit income (loss)

 

368

 

 

1,813

 

 

2,389

 

 

(3,625

)

 

 

1,186

 

 

2,181

 

 

3,794

 

Other income

 

5,076

 

 

6,103

 

 

5,253

 

 

3,044

 

 

 

2,212

 

 

11,179

 

 

8,420

 

Total noninterest income

 

14,290

 

 

16,898

 

 

16,873

 

 

9,454

 

 

 

14,194

 

 

31,188

 

 

32,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

41,641

 

 

42,503

 

 

38,175

 

 

36,999

 

 

 

36,028

 

 

84,144

 

 

71,855

 

Occupancy

 

3,954

 

 

4,061

 

 

4,248

 

 

4,497

 

 

 

4,309

 

 

8,015

 

 

8,895

 

Deposit costs

 

16,980

 

 

12,720

 

 

13,256

 

 

7,661

 

 

 

5,905

 

 

29,700

 

 

10,165

 

Other expense

 

23,381

 

 

21,699

 

 

21,470

 

 

19,686

 

 

 

19,182

 

 

45,080

 

 

37,309

 

Total noninterest expense

 

85,956

 

 

80,983

 

 

77,149

 

 

68,843

 

 

 

65,424

 

 

166,939

 

 

128,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

62,687

 

 

71,261

 

 

76,436

 

 

64,225

 

 

 

57,725

 

 

133,948

 

 

118,799

 

Income tax expense

 

13,560

 

 

15,523

 

 

16,435

 

 

14,025

 

 

 

12,576

 

 

29,083

 

 

25,957

 

Net income

$

49,127

 

$

55,738

 

$

60,001

 

$

50,200

 

 

$

45,149

 

$

104,865

 

$

92,842

 

Preferred stock dividends

 

937

 

 

938

 

 

937

 

 

937

 

 

 

938

 

 

1,875

 

 

2,167

 

Net income available to common shareholders

$

48,190

 

$

54,800

 

$

59,064

 

$

49,263

 

 

$

44,211

 

$

102,990

 

$

90,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

1.29

 

$

1.47

 

$

1.59

 

$

1.32

 

 

$

1.19

 

$

2.76

 

$

2.42

 

Diluted earnings per common share

$

1.29

 

$

1.46

 

$

1.58

 

$

1.32

 

 

$

1.19

 

$

2.75

 

$

2.41

 

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
 

 

Quarter ended

($ in thousands)

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Sep 30,

2022

 

Jun 30,

2022

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

202,702

 

 

$

210,813

 

 

$

229,580

 

 

$

264,078

 

 

$

271,763

 

Interest-earning deposits

 

125,328

 

 

 

81,241

 

 

 

69,808

 

 

 

489,825

 

 

 

680,343

 

Securities and other investments

 

2,340,821

 

 

 

2,338,746

 

 

 

2,309,512

 

 

 

2,171,942

 

 

 

2,172,318

 

Loans held for sale

 

551

 

 

 

261

 

 

 

1,228

 

 

 

785

 

 

 

4,615

 

 

 

 

 

 

 

 

 

 

 

Loans

 

10,512,623

 

 

 

10,011,918

 

 

 

9,737,138

 

 

 

9,354,987

 

 

 

9,269,176

 

Allowance for credit losses

 

(141,319

)

 

 

(138,295

)

 

 

(136,932

)

 

 

(140,572

)

 

 

(140,546

)

Total loans, net

 

10,371,304

 

 

 

9,873,623

 

 

 

9,600,206

 

 

 

9,214,415

 

 

 

9,128,630

 

 

 

 

 

 

 

 

 

 

 

Fixed assets, net

 

41,988

 

 

 

42,340

 

 

 

42,985

 

 

 

43,882

 

 

 

46,028

 

Goodwill

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

Intangible assets, net

 

14,544

 

 

 

15,680

 

 

 

16,919

 

 

 

18,217

 

 

 

19,528

 

Other assets

 

408,752

 

 

 

398,114

 

 

 

418,770

 

 

 

426,479

 

 

 

396,117

 

Total assets

$

13,871,154

 

 

$

13,325,982

 

 

$

13,054,172

 

 

$

12,994,787

 

 

$

13,084,506

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

3,880,561

 

 

$

4,192,523

 

 

$

4,642,732

 

 

$

4,642,539

 

 

$

4,746,478

 

Interest-bearing deposits

 

7,739,299

 

 

 

6,962,113

 

 

 

6,186,418

 

 

 

6,415,055

 

 

 

6,346,140

 

Total deposits

 

11,619,860

 

 

 

11,154,636

 

 

 

10,829,150

 

 

 

11,057,594

 

 

 

11,092,618

 

Subordinated debentures and notes

 

155,706

 

 

 

155,569

 

 

 

155,433

 

 

 

155,298

 

 

 

155,164

 

FHLB advances

 

150,000

 

 

 

100,000

 

 

 

100,000

 

 

 

 

 

 

50,000

 

Other borrowings

 

199,390

 

 

 

213,489

 

 

 

324,119

 

 

 

197,422

 

 

 

226,695

 

Other liabilities

 

127,965

 

 

 

109,468

 

 

 

123,207

 

 

 

138,255

 

 

 

112,617

 

Total liabilities

 

12,252,921

 

 

 

11,733,162

 

 

 

11,531,909

 

 

 

11,548,569

 

 

 

11,637,094

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

Preferred stock

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

Common stock

 

374

 

 

 

373

 

 

 

373

 

 

 

372

 

 

 

372

 

Additional paid-in capital

 

988,355

 

 

 

984,281

 

 

 

982,660

 

 

 

979,543

 

 

 

976,684

 

Retained earnings

 

680,981

 

 

 

642,153

 

 

 

597,574

 

 

 

547,506

 

 

 

506,849

 

Accumulated other comprehensive loss

 

(123,465

)

 

 

(105,975

)

 

 

(130,332

)

 

 

(153,191

)

 

 

(108,481

)

Total shareholders’ equity

 

1,618,233

 

 

 

1,592,820

 

 

 

1,522,263

 

 

 

1,446,218

 

 

 

1,447,412

 

Total liabilities and shareholders’ equity

$

13,871,154

 

 

$

13,325,982

 

 

$

13,054,172

 

 

$

12,994,787

 

 

$

13,084,506

 

 
 
 

 

Six months ended

 

June 30, 2023

 

June 30, 2022

($ 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

$

10,041,312

 

$

323,076

 

6.49

%

 

$

9,057,788

 

$

198,629

 

4.42

%

Securities2

 

2,293,249

 

 

34,667

 

3.05

 

 

 

1,996,442

 

 

23,913

 

2.42

 

Interest-earning deposits

 

140,206

 

 

3,290

 

4.73

 

 

 

1,590,569

 

 

3,313

 

0.42

 

Total interest-earning assets

 

12,474,767

 

 

361,033

 

5.84

 

 

 

12,644,799

 

 

225,855

 

3.60

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

928,317

 

 

 

 

 

 

926,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

13,403,084

 

 

 

 

 

$

13,571,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

$

2,356,708

 

$

16,027

 

1.37

%

 

$

2,416,889

 

$

1,194

 

0.10

%

Money market accounts

 

2,873,715

 

 

35,970

 

2.52

 

 

 

2,819,659

 

 

3,730

 

0.27

 

Savings accounts

 

709,490

 

 

457

 

0.13

 

 

 

836,249

 

 

137

 

0.03

 

Certificates of deposit

 

946,527

 

 

13,579

 

2.89

 

 

 

599,067

 

 

1,648

 

0.55

 

Total interest-bearing deposits

 

6,886,440

 

 

66,033

 

1.93

 

 

 

6,671,864

 

 

6,709

 

0.20

 

Subordinated debentures and notes

 

155,565

 

 

4,840

 

6.27

 

 

 

155,026

 

 

4,477

 

5.82

 

FHLB advances

 

104,887

 

 

2,611

 

5.02

 

 

 

50,000

 

 

392

 

1.58

 

Securities sold under agreements to repurchase

 

188,958

 

 

1,453

 

1.55

 

 

 

232,229

 

 

101

 

0.09

 

Other borrowings

 

94,048

 

 

1,772

 

3.80

 

 

 

22,123

 

 

193

 

1.76

 

Total interest-bearing liabilities

 

7,429,898

 

 

76,709

 

2.08

 

 

 

7,131,242

 

 

11,872

 

0.34

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

4,265,521

 

 

 

 

 

 

4,840,558

 

 

 

 

Other liabilities

 

112,625

 

 

 

 

 

 

94,129

 

 

 

 

Total liabilities

 

11,808,044

 

 

 

 

 

 

12,065,929

 

 

 

 

Shareholders' equity

 

1,595,040

 

 

 

 

 

 

1,505,073

 

 

 

 

Total liabilities and shareholders' equity

$

13,403,084

 

 

 

 

 

$

13,571,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net interest income

 

 

$

284,324

 

 

 

 

 

$

213,983

 

 

Net interest margin

 

 

 

 

4.60

%

 

 

 

 

 

3.41

%

 

 

 

 

 

 

 

 

 

 

 

 

1 Average balances include nonaccrual loans. Interest income includes loan fees of $7.4 million and $9.3 million for the six months ended June 30, 2023 and June 30, 2022, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a 25.2% tax rate. The tax-equivalent adjustments were $4.1 million and $3.2 million for the six months ended June 30, 2023 and 2022, respectively.

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
 

 

Quarter ended

($ in thousands)

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Sep 30,

2022

 

Jun 30,

2022

LOAN PORTFOLIO

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

4,360,862

 

 

$

4,032,189

 

 

$

3,859,882

 

 

$

3,709,893

 

 

$

3,596,701

 

Commercial real estate

 

4,802,293

 

 

 

4,699,302

 

 

 

4,628,371

 

 

 

4,438,647

 

 

 

4,294,375

 

Construction real estate

 

671,573

 

 

 

663,264

 

 

 

611,565

 

 

 

583,649

 

 

 

724,163

 

Residential real estate

 

368,867

 

 

 

364,059

 

 

 

395,537

 

 

 

397,450

 

 

 

413,727

 

Other

 

309,028

 

 

 

253,104

 

 

 

241,783

 

 

 

225,348

 

 

 

240,210

 

Total loans

$

10,512,623

 

 

$

10,011,918

 

 

$

9,737,138

 

 

$

9,354,987

 

 

$

9,269,176

 

 

 

 

 

 

 

 

 

 

 

DEPOSIT PORTFOLIO

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand accounts

$

3,880,561

 

 

$

4,192,523

 

 

$

4,642,732

 

 

$

4,642,539

 

 

$

4,746,478

 

Interest-bearing demand accounts

 

2,629,339

 

 

 

2,395,901

 

 

 

2,256,295

 

 

 

2,270,898

 

 

 

2,197,957

 

Money market and savings accounts

 

3,577,856

 

 

 

3,672,539

 

 

 

3,399,415

 

 

 

3,617,249

 

 

 

3,562,982

 

Brokered certificates of deposit

 

893,808

 

 

 

369,505

 

 

 

118,968

 

 

 

129,039

 

 

 

129,064

 

Other certificates of deposit

 

638,296

 

 

 

524,168

 

 

 

411,740

 

 

 

397,869

 

 

 

456,137

 

Total deposits

$

11,619,860

 

 

$

11,154,636

 

 

$

10,829,150

 

 

$

11,057,594

 

 

$

11,092,618

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

Loans

$

10,284,873

 

 

$

9,795,045

 

 

$

9,423,984

 

 

$

9,230,738

 

 

$

9,109,131

 

Securities

 

2,297,995

 

 

 

2,288,451

 

 

 

2,204,211

 

 

 

2,202,255

 

 

 

2,068,119

 

Interest-earning assets

 

12,756,653

 

 

 

12,189,750

 

 

 

11,995,295

 

 

 

12,198,251

 

 

 

12,579,211

 

Assets

 

13,671,985

 

 

 

13,131,195

 

 

 

12,986,568

 

 

 

13,158,121

 

 

 

13,528,474

 

Deposits

 

11,387,813

 

 

 

10,913,489

 

 

 

11,002,614

 

 

 

11,154,895

 

 

 

11,530,432

 

Shareholders’ equity

 

1,621,337

 

 

 

1,568,451

 

 

 

1,490,592

 

 

 

1,494,504

 

 

 

1,474,267

 

Tangible common equity1

 

1,169,091

 

 

 

1,115,052

 

 

 

1,035,896

 

 

 

1,038,495

 

 

 

1,016,940

 

 

 

 

 

 

 

 

 

 

 

YIELDS (tax equivalent)

 

 

 

 

 

 

 

 

 

Loans

 

6.64

%

 

 

6.33

%

 

 

5.87

%

 

 

5.10

%

 

 

4.51

%

Securities

 

3.06

 

 

 

3.03

 

 

 

2.91

 

 

 

2.65

 

 

 

2.51

 

Interest-earning assets

 

5.97

 

 

 

5.69

 

 

 

5.25

 

 

 

4.47

 

 

 

3.76

 

Interest-bearing deposits

 

2.26

 

 

 

1.56

 

 

 

0.94

 

 

 

0.54

 

 

 

0.24

 

Deposits

 

1.46

 

 

 

0.92

 

 

 

0.53

 

 

 

0.31

 

 

 

0.13

 

Subordinated debentures and notes

 

6.27

 

 

 

6.28

 

 

 

6.07

 

 

 

5.91

 

 

 

5.84

 

FHLB advances and other borrowed funds

 

3.45

 

 

 

2.60

 

 

 

1.39

 

 

 

0.66

 

 

 

0.51

 

Interest-bearing liabilities

 

2.40

 

 

 

1.72

 

 

 

1.07

 

 

 

0.67

 

 

 

0.37

 

Net interest margin

 

4.49

 

 

 

4.71

 

 

 

4.66

 

 

 

4.10

 

 

 

3.55

 

 

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

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
 

 

Quarter ended

(in thousands, except per share data)

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Sep 30,

2022

 

Jun 30,

2022

ASSET QUALITY

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

$

2,973

 

 

$

(264

)

 

$

2,075

 

 

$

478

 

 

$

(175

)

Nonperforming loans

 

16,112

 

 

 

11,972

 

 

 

9,981

 

 

 

18,184

 

 

 

19,560

 

Classified assets

 

108,065

 

 

 

110,384

 

 

 

99,122

 

 

 

98,078

 

 

 

96,801

 

Nonperforming loans to total loans

 

0.15

%

 

 

0.12

%

 

 

0.10

%

 

 

0.19

%

 

 

0.21

%

Nonperforming assets to total assets

 

0.12

%

 

 

0.09

%

 

 

0.08

%

 

 

0.14

%

 

 

0.16

%

Allowance for credit losses to total loans

 

1.34

%

 

 

1.38

%

 

 

1.41

%

 

 

1.50

%

 

 

1.52

%

Allowance for credit losses to nonperforming loans

 

877.1

%

 

 

1,155.2

%

 

 

1,371.9

%

 

 

773.1

%

 

 

718.5

%

Net charge-offs (recoveries) to average loans -annualized

 

0.12

%

 

 

(0.01

)%

 

 

0.09

%

 

 

0.02

%

 

 

(0.01

)%

 

 

 

 

 

 

 

 

 

 

WEALTH MANAGEMENT

 

 

 

 

 

 

 

 

 

Trust assets under management

$

1,992,563

 

 

$

1,956,146

 

 

$

1,885,394

 

 

$

1,691,230

 

 

$

1,757,228

 

 

 

 

 

 

 

 

 

 

 

MARKET DATA

 

 

 

 

 

 

 

 

 

Book value per common share

$

41.39

 

 

$

40.76

 

 

$

38.93

 

 

$

36.92

 

 

$

36.97

 

Tangible book value per common share1

$

31.23

 

 

$

30.55

 

 

$

28.67

 

 

$

26.62

 

 

$

26.63

 

Market value per share

$

39.10

 

 

$

44.59

 

 

$

48.96

 

 

$

44.04

 

 

$

41.50

 

Period end common shares outstanding

 

37,359

 

 

 

37,311

 

 

 

37,253

 

 

 

37,223

 

 

 

37,206

 

Average basic common shares

 

37,347

 

 

 

37,305

 

 

 

37,257

 

 

 

37,241

 

 

 

37,243

 

Average diluted common shares

 

37,495

 

 

 

37,487

 

 

 

37,415

 

 

 

37,348

 

 

 

37,282

 

 

 

 

 

 

 

 

 

 

 

CAPITAL

 

 

 

 

 

 

 

 

 

Total risk-based capital to risk-weighted assets2

 

14.1

%

 

 

14.3

%

 

 

14.2

%

 

 

14.2

%

 

 

14.2

%

Tier 1 capital to risk-weighted assets2

 

12.5

%

 

 

12.6

%

 

 

12.6

%

 

 

12.6

%

 

 

12.5

%

Common equity tier 1 capital to risk-weighted assets2

 

11.1

%

 

 

11.2

%

 

 

11.1

%

 

 

11.0

%

 

 

10.9

%

Tangible common equity to tangible assets1

 

8.65

%

 

 

8.81

%

 

 

8.43

%

 

 

7.86

%

 

 

7.80

%

 

 

 

 

 

 

 

 

 

 

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

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

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
 

 

Quarter ended

 

Six months ended

($ in thousands)

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Sep 30,

2022

 

Jun 30,

2022

 

Jun 30,

2023

 

Jun 30,

2022

CORE EFFICIENCY RATIO

 

 

 

 

Net interest income (GAAP)

$

140,692

 

 

$

139,529

 

 

$

138,835

 

 

$

124,290

 

 

$

109,613

 

 

$

280,221

 

 

$

210,778

 

Tax-equivalent adjustment

 

2,062

 

 

 

2,041

 

 

 

1,983

 

 

 

1,854

 

 

 

1,699

 

 

 

4,103

 

 

 

3,205

 

Noninterest income (GAAP)

 

14,290

 

 

 

16,898

 

 

 

16,873

 

 

 

9,454

 

 

 

14,194

 

 

 

31,188

 

 

 

32,835

 

Less gain on sale of investment securities

 

 

 

 

381

 

 

 

 

 

 

 

 

 

 

 

 

381

 

 

 

 

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

 

97

 

 

 

90

 

 

 

 

 

 

(22

)

 

 

(90

)

 

 

187

 

 

 

(71

)

Core revenue (non-GAAP)

 

156,947

 

 

 

157,997

 

 

 

157,691

 

 

 

135,620

 

 

 

125,596

 

 

 

314,944

 

 

 

246,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

85,956

 

 

 

80,983

 

 

 

77,149

 

 

 

68,843

 

 

 

65,424

 

 

 

166,939

 

 

 

128,224

 

Less amortization on intangibles

 

1,136

 

 

 

1,239

 

 

 

1,299

 

 

 

1,310

 

 

 

1,328

 

 

 

2,375

 

 

 

2,758

 

Core noninterest expense (non-GAAP)

 

84,820

 

 

 

79,744

 

 

 

75,850

 

 

 

67,533

 

 

 

64,096

 

 

 

164,564

 

 

 

125,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core efficiency ratio (non-GAAP)

 

54.04

%

 

 

50.47

%

 

 

48.10

%

 

 

49.80

%

 

 

51.03

%

 

 

52.25

%

 

 

50.82

%

 

 

Quarter ended

($ in thousands)

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Sep 30,

2022

 

Jun 30,

2022

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

Shareholders’ equity

$

1,618,233

 

 

$

1,592,820

 

 

$

1,522,263

 

 

$

1,446,218

 

 

$

1,447,412

 

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

 

14,544

 

 

 

15,680

 

 

 

16,919

 

 

 

18,217

 

 

 

19,528

 

Tangible common equity

$

1,166,537

 

 

$

1,139,988

 

 

$

1,068,192

 

 

$

990,849

 

 

$

990,732

 

Less net unrealized losses on HTM portfolio, after tax of 25.2%

 

53,611

 

 

 

48,630

 

 

 

61,435

 

 

 

81,752

 

 

 

60,512

 

Tangible common equity adjusted for unrealized losses on HTM securities

$

1,112,926

 

 

$

1,091,358

 

 

$

1,006,757

 

 

$

909,097

 

 

$

930,220

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

37,359

 

 

 

37,311

 

 

 

37,253

 

 

 

37,223

 

 

 

37,206

 

Tangible book value per share

$

31.23

 

 

$

30.55

 

 

$

28.67

 

 

$

26.62

 

 

$

26.63

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

13,871,154

 

 

$

13,325,982

 

 

$

13,054,172

 

 

$

12,994,787

 

 

$

13,084,506

 

Less goodwill

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

Less intangible assets

 

14,544

 

 

 

15,680

 

 

 

16,919

 

 

 

18,217

 

 

 

19,528

 

Tangible assets

$

13,491,446

 

 

$

12,945,138

 

 

$

12,672,089

 

 

$

12,611,406

 

 

$

12,699,814

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

8.65

%

 

 

8.81

%

 

 

8.43

%

 

 

7.86

%

 

 

7.80

%

Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities

 

8.25

%

 

 

8.43

%

 

 

7.94

%

 

 

7.21

%

 

 

7.32

%

 
 

Quarter Ended

 

Six months ended

($ in thousands)

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Sep 30,

2022

 

Jun 30,

2022

 

Jun 30,

2023

 

Jun 30,

2022

RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE)

 

 

 

 

Average shareholder’s equity

$

1,621,337

 

 

$

1,568,451

 

 

$

1,490,592

 

 

$

1,494,504

 

 

$

1,474,267

 

 

$

1,595,040

 

 

$

1,505,073

 

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

 

15,094

 

 

 

16,247

 

 

 

17,544

 

 

 

18,857

 

 

 

20,175

 

 

 

15,667

 

 

 

20,854

 

Average tangible common equity

$

1,169,091

 

 

$

1,115,052

 

 

$

1,035,896

 

 

$

1,038,495

 

 

$

1,016,940

 

 

$

1,142,221

 

$

1,047,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders (GAAP)

$

48,190

 

 

$

54,800

 

 

$

59,064

 

 

$

49,263

 

 

$

44,211

 

 

$

102,990

 

 

$

90,675

 

ROATCE

 

16.53

%

 

 

19.93

%

 

 

22.62

%

 

 

18.82

%

 

 

17.44

%

 

 

18.18

%

 

 

17.46

%

 
 

Quarter ended

 

Six months ended

($ in thousands)

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Sep 30,

2022

 

Jun 30,

2022

 

Jun 30,

2023

 

Jun 30,

2022

CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)

 

 

 

 

Net interest income

$

140,692

 

 

$

139,529

 

 

$

138,835

 

 

$

124,290

 

 

$

109,613

 

 

$

280,221

 

 

$

210,778

 

Noninterest income

 

14,290

 

 

 

16,898

 

 

 

16,873

 

 

 

9,454

 

 

 

14,194

 

 

 

31,188

 

 

 

32,835

 

Less gain on sale of investment securities

 

 

 

 

381

 

 

 

 

 

 

 

 

 

 

 

 

381

 

 

 

 

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

 

97

 

 

 

90

 

 

 

 

 

 

(22

)

 

 

(90

)

 

 

187

 

 

 

(71

)

Less noninterest expense

 

85,956

 

 

 

80,983

 

 

 

77,149

 

 

 

68,843

 

 

 

65,424

 

 

 

166,939

 

 

 

128,224

 

PPNR

$

68,929

 

 

$

74,973

 

 

$

78,559

 

 

$

64,923

 

 

$

58,473

 

 

$

143,902

 

 

$

115,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

$

13,671,985

 

 

$

13,131,195

 

 

$

12,986,568

 

 

$

13,158,121

 

 

$

13,528,474

 

 

$

13,403,084

 

 

$

13,571,002

 

ROAA - GAAP net income

 

1.44

%

 

 

1.72

%

 

 

1.83

%

 

 

1.51

%

 

 

1.34

%

 

 

1.58

%

 

 

1.38

%

PPNR ROAA - PPNR

 

2.02

%

 

 

2.32

%

 

 

2.40

%

 

 

1.96

%

 

 

1.73

%

 

 

2.17

%

 

 

1.72

%

 

 

Quarter ended

($ in thousands)

Jun 30,

2023

 

Mar 31,

2023

CALCULATION OF ESTIMATED INSURED DEPOSITS

Estimated uninsured deposits per Call Report

$

3,821,266

 

 

$

4,284,815

 

Collateralized/affiliate deposits

 

(508,100

)

 

 

(816,602

)

Accrued interest on deposits

 

(5,052

)

 

 

(1,688

)

Adjusted uninsured/uncollateralized deposits

 

3,308,114

 

 

 

3,466,525

 

Estimated insured/collateralized deposits

 

8,311,746

 

 

 

7,688,111

 

Total deposits

$

11,619,860

 

 

$

11,154,636

 

 

 

 

 

 

 

Contacts

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

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

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