Enterprise Financial Reports Third Quarter 2023 Results

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 had strong third quarter operating results with earnings per share of $1.17, a net interest margin of 4.33%, and a return on average assets of 1.26%. In a challenging environment, we continued to expand net interest income while strengthening liquidity and increasing our customer base. In line with our expectations, loan growth moderated this quarter, and we successfully increased customer deposits and reduced wholesale funding. The strength of our balance sheet and operating revenue has us well-positioned to continue delivering long-term shareholder value.”

Highlights

• Earnings - Net income in the third quarter 2023 was $44.7 million, a decrease of $4.5 million, compared to the linked quarter and a decrease of $5.5 million from the prior year quarter. Earnings per share (“EPS”) was $1.17 per diluted common share for the third quarter 2023, compared to $1.29 and $1.32 per diluted common share for the linked and prior year quarters, respectively.
• Pre-provision net revenue² (“PPNR”) - PPNR of $65.1 million in the third quarter 2023 decreased $3.8 million from the linked quarter and increased $0.2 million from the prior year quarter.
• Net interest income and net interest margin (“NIM”) - Net interest income of $141.6 million for the third quarter 2023 increased $0.9 million and $17.3 million from the linked and prior year quarters, respectively. NIM was 4.33% for the third quarter 2023, compared to 4.49% and 4.10% for the linked and prior year quarters, respectively. Net interest income has benefited from higher average loan and investment balances combined with expanding yields on earning assets. NIM decreased 16 basis points from the linked quarter, primarily due to the increase in deposit interest expense and increased 23 basis points from the prior year quarter primarily due to an increase in earning asset yields.
• Noninterest income - Noninterest income of $12.1 million for the third quarter 2023 decreased $2.2 million and increased $2.6 million from the linked and prior year quarters, respectively. The decline from the linked quarter was primarily due to a decrease in tax credit and community development income, partially offset by a gain on the sale of SBA loans. The increase from the prior year quarter was primarily due to the gain on sale of SBA loans.
• Noninterest expense - Noninterest expense of $88.6 million for the third quarter 2023 increased $2.7 million and $19.8 million from the linked and prior year quarters, respectively. The increase from both the linked and prior year quarters was primarily due to an increase in variable deposit costs and employee compensation.
• Loans - Loans totaled $10.6 billion at September 30, 2023, an increase of $104.2 million, or 3.9% on an annualized basis, from the linked quarter and an increase of $1.3 billion, or 13.5%, from the prior year period. Average loans totaled $10.5 billion for the quarter ended September 30, 2023, compared to $10.3 billion and $9.2 billion for the linked and prior year quarters, respectively.
• Asset quality - The allowance for credit losses to total loans was 1.34% at both September 30, 2023 and June 30, 2023 and 1.50% at September 30, 2022. The ratio of nonperforming assets to total assets was 0.40% at September 30, 2023, compared to 0.12% and 0.14% at June 30, 2023 and September 30, 2022, respectively. The provision for credit losses of $8.0 million recorded in the third quarter 2023 was primarily related to net charge-offs of $6.9 million and the increase in nonperforming assets.
• Deposits - Total deposits increased $290.0 million from the linked quarter to $11.9 billion as of September 30, 2023. Average deposits totaled $11.9 billion for the quarter ended September 30, 2023, compared to $11.4 billion and $11.2 billion for the linked and prior year quarters, respectively. At September 30, 2023, noninterest-bearing deposit accounts totaled $3.9 billion, or 32.3% of total deposits, and the loan to deposit ratio was 89.1%.
• Liquidity - The Company’s total available on- and off-balance-sheet liquidity was approximately $4.7 billion at September 30, 2023. On-balance-sheet liquidity consisted of cash of $370.7 million and $790.9 million in unpledged investment securities at September 30, 2023. Off-balance-sheet liquidity consisted of $945.1 million available through the Federal Home Loan Bank, $2.5 billion available through the Federal Reserve and $120.0 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 8.51% at September 30, 2023, compared to 8.65% at June 30, 2023. The tangible common equity to tangible assets ratio, adjusted for unrealized losses on held-to-maturity securities,³ was 7.91% at September 30, 2023 and 8.25% at June 30, 2023. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.1% and a total risk-based capital ratio of 13.1% as of September 30, 2023. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.2% and 14.1%, respectively, at September 30, 2023.
  
  The Company’s Board of Directors approved a quarterly dividend of $0.25 per common share, payable on December 29, 2023 to shareholders of record as of December 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) September 15, 2023 to (but excluding) December 15, 2023. The dividend will be payable on December 15, 2023 to holders of record of Series A Preferred Stock as of November 30, 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
	September 30, 2023									June 30, 2023									September 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	$	10,521,966		$	180,382		6.80	%		$	10,284,873		$	170,314		6.64	%		$	9,230,738		$	118,642		5.10	%
Securities2		2,302,850			18,076		3.11				2,297,995			17,550		3.06				2,202,255			14,717		2.65
Interest-earning deposits		335,771			4,509		5.33				173,785			2,095		4.84				765,258			4,190		2.17
Total interest-earning assets		13,160,587			202,967		6.12				12,756,653			189,959		5.97				12,198,251			137,549		4.47
Noninterest-earning assets		908,273									915,332									959,870
Total assets	$	14,068,860								$	13,671,985								$	13,158,121
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	2,672,084		$	13,701		2.03	%		$	2,509,805		$	10,120		1.62	%		$	2,200,619		$	1,707		0.31	%
Money market accounts		3,079,221			26,427		3.40				2,920,079			20,499		2.82				2,791,822			6,067		0.86
Savings accounts		646,187			250		0.15				686,973			227		0.13				828,747			69		0.03
Certificates of deposit		1,519,119			14,976		3.91				1,219,500			10,526		3.46				554,987			844		0.60
Total interest-bearing deposits		7,916,611			55,354		2.77				7,336,357			41,372		2.26				6,376,175			8,687		0.54
Subordinated debentures and notes		155,769			2,466		6.28				155,632			2,431		6.27				155,225			2,313		5.91
FHLB advances		10,326			141		5.42				98,912			1,279		5.19				25,543			103		1.60
Securities sold under agreements to repurchase		146,893			969		2.61				162,606			704		1.74				198,027			123		0.25
Other borrowings		50,571			337		2.66				133,770			1,419		4.25				19,984			179		3.55
Total interest-bearing liabilities		8,280,170			59,267		2.84				7,887,277			47,205		2.40				6,774,954			11,405		0.67
Noninterest-bearing liabilities:
Demand deposits		4,005,923									4,051,456									4,778,720
Other liabilities		134,162									111,915									109,943
Total liabilities		12,420,255									12,050,648									11,663,617
Shareholders' equity		1,648,605									1,621,337									1,494,504
Total liabilities and shareholders' equity	$	14,068,860								$	13,671,985								$	13,158,121
Total net interest income				$	143,700								$	142,754								$	126,144
Net interest margin							4.33	%								4.49	%								4.10	%
1 Average balances include nonaccrual loans. Interest income includes loan fees of $3.3 million, $3.7 million, and $3.6 million for the three months ended September 30, 2023, June 30, 2023, and September 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, $2.1 million, and $1.9 million for the three months ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.

Net interest income for the third quarter 2023 was $141.6 million, an increase of $0.9 million, compared to the linked quarter and an increase of $17.3 million from the prior year quarter. Net interest income on a tax equivalent basis was $143.7 million, $142.8 million and $126.1 million for the current, linked and prior year quarters, respectively. 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 $13.0 million during the third quarter 2023 primarily due to an increase of $10.1 million in loan interest income and a $2.4 million increase in interest on cash accounts. Loan interest income has increased from continued loan growth and higher loan yields. Interest on loans benefited from a 16 basis point increase in yield and a $237.1 million increase in average loan balances, compared to the linked quarter. The average interest rate of new loan originations in the third quarter 2023 was 7.89%. Interest on cash accounts increased due to a 49 basis point increase in yield and a $162.0 million increase in average balances.

Interest expense increased $12.1 million in the third quarter 2023 primarily due to a $14.0 million increase in deposit interest expense. This increase was partially offset by a $1.1 million decrease in interest expense on other borrowings. The increase in deposit interest expense reflects a shift in the deposit mix from demand deposits to interest-bearing deposits, particularly money market accounts and certificates of deposit, as well as higher rates paid on deposits. The average cost of interest-bearing deposits was 2.77%, an increase of 51 basis points compared to the linked quarter. The increase in cost was primarily due to higher interest rates paid on commercial balances. The total cost of deposits, including noninterest-bearing demand accounts, was 1.84% during the third quarter 2023, compared to 1.46% in the linked quarter. The decrease in interest expense on other borrowings was primarily due to a decline in average borrowings that were reduced due to the increase in liquidity from the growth in core deposits.

NIM, on a tax equivalent basis, was 4.33% in the third quarter 2023, a decrease of 16 basis points from the linked quarter and an increase of 23 basis points from the prior year quarter. For the month of September 2023, the loan portfolio yield was 6.89% and the cost of total deposits was 2.0%.

Investments

	Quarter ended
	September 30, 2023							June 30, 2023							September 30, 2022
($ in thousands)	Carrying Value			Net Unrealized Loss				Carrying Value			Net Unrealized Loss				Carrying Value			Net Unrealized Loss
Available-for-sale (AFS)	$	1,487,104		$	(235,013	)		$	1,550,375		$	(179,857	)		$	1,466,912		$	(225,675	)
Held-to-maturity (HTM)		730,655			(108,780	)			723,959			(71,673	)			646,393			(109,294	)
Total	$	2,217,759		$	(343,793	)		$	2,274,334		$	(251,530	)		$	2,113,305		$	(334,969	)

Investment securities totaled $2.2 billion at September 30, 2023, a decrease of $56.6 million from the linked quarter. The decrease was primarily due to a $55.2 million decline in the fair value of available-for-sale securities due to a decline in longer-term rates in the quarter. Investment purchases in the third quarter 2023 had a weighted average, tax equivalent yield of 5.60%.

The average duration of the investment portfolio was 5.6 years at September 30, 2023. The Company utilizes the investment portfolio to lengthen the overall duration of the balance sheet. 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 7.91% at September 30, 2023, compared to 8.25% at June 30, 2023.

Loans

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

	Quarter ended
($ in thousands)	September 30, 2023				June 30, 2023				March 31, 2023				December 31, 2022				September 30, 2022
C&I	$	2,020,303			$	2,029,370			$	2,005,539			$	1,904,654			$	1,780,677
CRE investor owned		2,260,220				2,290,701				2,239,932				2,176,424				2,106,458
CRE owner occupied		1,255,885				1,208,675				1,173,985				1,174,094				1,133,467
SBA loans*		1,309,497				1,327,667				1,315,732				1,312,378				1,269,065
Sponsor finance*		888,000				879,491				677,529				635,061				650,102
Life insurance premium financing*		928,486				912,274				859,910				817,115				779,606
Tax credits*		683,580				609,137				547,513				559,605				507,681
SBA PPP loans		4,940				5,173				5,438				7,272				13,165
Residential real estate		364,618				354,588				348,726				379,924				381,634
Construction and land development		639,555				599,375				590,509				534,753				513,452
Other		261,736				296,172				247,105				235,858				219,680
Total loans	$	10,616,820			$	10,512,623			$	10,011,918			$	9,737,138			$	9,354,987
Total loan yield		6.80	%			6.64	%			6.33	%			5.87	%			5.10	%
Variable interest rate loans to total loans		61	%			62	%			63	%			63	%			63	%
*Specialty loan category

Loans totaled $10.6 billion at September 30, 2023, increasing $104.2 million, compared to the linked quarter. The increase was primarily in tax credit and owner-occupied CRE loans. Loan sales of $33.3 million mitigated growth in the SBA category during the current quarter. Total loan growth in the third quarter was moderated by net line paydowns of $212.8 million. Average line utilization was approximately 41% for the third quarter 2023, compared to 45% and 43% 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:

	Quarter ended
($ in thousands)	September 30, 2023				June 30, 2023				March 31, 2023				December 31, 2022				September 30, 2022
Nonperforming loans*	$	48,932			$	16,112			$	11,972			$	9,981			$	18,184
Other		6,933				—				250				269				269
Nonperforming assets*	$	55,865			$	16,112			$	12,222			$	10,250			$	18,453
Nonperforming loans to total loans		0.46	%			0.15	%			0.12	%			0.10	%			0.19	%
Nonperforming assets to total assets		0.40	%			0.12	%			0.09	%			0.08	%			0.14	%
Allowance for credit losses to total loans		1.34	%			1.34	%			1.38	%			1.41	%			1.50	%
Net charge-offs (recoveries)	$	6,856			$	2,973			$	(264	)		$	2,075			$	478
*Guaranteed balances excluded	$	5,974			$	6,666			$	6,835			$	6,708			$	6,532

Nonperforming assets increased $39.8 million during the third quarter 2023 and increased $37.4 million from the prior year quarter. Nonperforming loans increased $32.8 million and $30.7 million from the linked and prior year quarters, respectively. OREO and repossessed assets increased $6.9 million and $6.7 million from the linked and prior year quarters, respectively. The increase in nonperforming loans in the third quarter 2023 was primarily due to three relationships in the C&I and CRE categories of $1.8 million and $31.0 million, respectively. The increase in OREO and repossessed assets in the third quarter 2023 represented one relationship that had a related charge-off of $4.7 million in the current period. Annualized net charge-offs totaled 26 basis points of average loans in the third quarter 2023, compared to 12 basis points and two basis points in the linked and prior year quarters, respectively.

The provision for credit losses totaled $8.0 million in the third quarter 2023, compared to $6.3 million and $0.7 million in the linked and prior year quarters, respectively. The provision for credit losses in the third quarter 2023 was primarily related to net charge-offs, an increase in nonperforming loans, and loan growth, partially offset by an improvement in forecasted economic factors. The allowance for credit losses to total loans was 1.34% at both September 30, and June 30, 2023 compared to 1.50% in the prior year quarter.

Deposits

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

	Quarter ended
($ in thousands)	September 30, 2023				June 30, 2023				March 31, 2023				December 31, 2022				September 30, 2022
Noninterest-bearing demand accounts	$	3,852,486			$	3,880,561			$	4,192,523			$	4,642,732			$	4,642,539
Interest-bearing demand accounts		2,749,598				2,629,339				2,395,901				2,256,295				2,270,898
Money market and savings accounts		3,837,145				3,577,856				3,672,539				3,399,415				3,617,249
Brokered certificates of deposit		695,551				893,808				369,505				118,968				129,039
Other certificates of deposit		775,127				638,296				524,168				411,740				397,869
Total deposit portfolio	$	11,909,907			$	11,619,860			$	11,154,636			$	10,829,150			$	11,057,594
Noninterest-bearing deposits to total deposits		32.3	%			33.4	%			37.6	%			42.9	%			42.0	%
Total costs of deposits		1.84	%			1.46	%			0.92	%			0.53	%			0.31	%

Total deposits at September 30, 2023 were $11.9 billion, an increase of $290.0 million and $852.3 million from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, deposits increased $488.0 million and $285.8 million, from the linked and prior year quarters, respectively. The mix of the deposit portfolio continued the shift from noninterest bearing demand deposits to higher cost 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 $1.1 billion at September 30, 2023, compared to $926.6 million at June 30, 2023.

Total estimated insured deposits, which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled $8.5 billion, or 71% of total deposits, at the end of September 30, 2023, compared to $8.3 billion, or 72% 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)	September 30, 2023				June 30, 2023			Increase (decrease)							September 30, 2022				Increase (decrease)
Deposit service charges		4,187				3,910		$	277			7	%			4,951			$	(764	)		(15	)%
Wealth management revenue		2,614				2,472			142			6	%			2,432				182			7	%
Card services revenue		2,560				2,464			96			4	%			2,652				(92	)		(3	)%
Tax credit income (loss)		(2,673	)			368			(3,041	)		(826	)%			(3,625	)			952			26	%
Other income		5,397				5,076			321			6	%			3,044				2,353			77	%
Total noninterest income	$	12,085			$	14,290		$	(2,205	)		(15	)%		$	9,454			$	2,631			28	%

Total noninterest income was $12.1 million for the third quarter 2023, a decrease of $2.2 million from the linked quarter and an increase of $2.6 million from the prior year quarter. The decrease from the linked quarter was primarily due to a decrease in tax credit income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The discount rate used in the fair value determination is the 10-year SOFR swap rate, which increased 70 basis points in the third quarter. The increase from the prior year quarter was primarily due to Other income, as further discussed below.

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, 2023			June 30, 2023			Increase (decrease)							September 30, 2022			Increase (decrease)
BOLI	$	822		$	797		$	25			3	%		$	769		$	53			7	%
Community development investments		338			2,077			(1,739	)		(84	)%			170			168			99	%
Private equity fund distribution		181			371			(190	)		(51	)%			64			117			183	%
Servicing fees		701			407			294			72	%			655			46			7	%
Swap fees		54			173			(119	)		(69	)%			166			(112	)		(67	)%
Gain on SBA loan sales		1,514			—			1,514			NM				—			1,514			NM
Miscellaneous income		1,787			1,251			536			43	%			1,220			567			46	%
Total other income	$	5,397		$	5,076		$	321			6	%		$	3,044		$	2,353			77	%
NM - Not meaningful

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 community development income of $1.7 million compared to the linked quarter was partially offset by a $1.5 million gain on the sale of SBA loans in the third quarter 2023. The $2.4 million increase in Other income from the prior year quarter was primarily due to the gain on sale of SBA loans.

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, 2023			June 30, 2023			Increase (decrease)							September 30, 2022			Increase (decrease)
Employee compensation and benefits	$	40,771		$	41,641		$	(870	)		(2	)%		$	36,999		$	3,772			10	%
Occupancy		4,198			3,954			244			6	%			4,497			(299	)		(7	)%
Deposit costs		20,987			16,980			4,007			24	%			7,661			13,326			174	%
Other expense		22,688			23,381			(693	)		(3	)%			19,686			3,002			15	%
Total noninterest expense	$	88,644		$	85,956		$	2,688			3	%		$	68,843		$	19,801			29	%

Employee compensation and benefits decreased $0.9 million from the linked quarter due to a decrease in benefit costs, primarily due to lower claims on self-insured medical policies. Deposit costs relate to certain specialized deposit businesses that are impacted by higher interest rates as well as increasing average balances. Deposit costs increased $4.0 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 increase in noninterest expense of $19.8 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 third quarter 2023, the Company’s core efficiency ratio⁵ was 56.2%, compared to 54.0% for the linked quarter and 49.8% 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)	September 30, 2023*				June 30, 2023				March 31, 2023				December 31, 2022				September 30, 2022
Shareholders’ equity	$	1,611,880			$	1,618,233			$	1,592,820			$	1,522,263			$	1,446,218
Total risk-based capital to risk-weighted assets		14.1	%			14.1	%			14.3	%			14.2	%			14.2	%
Tier 1 capital to risk weighted assets		12.6	%			12.5	%			12.6	%			12.6	%			12.6	%
Common equity tier 1 capital to risk-weighted assets		11.2	%			11.1	%			11.2	%			11.1	%			11.0	%
Leverage ratio		10.9	%			11.0	%			11.1	%			10.9	%			10.4	%
Tangible common equity to tangible assets		8.51	%			8.65	%			8.81	%			8.43	%			7.86	%
*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 September 30, 2023, a decrease of $6.4 million from the linked quarter. The decrease was primarily due to a $44.4 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 decrease was partially offset by current period net income of $44.7 million. The Company’s tangible common book value per share was $31.06 at September 30, 2023, compared to $31.23 and $26.62 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 is a non-GAAP measure. Refer to discussion and reconciliation of this measure 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 this measure 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, October 24, 2023. During the call, management will review the third 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 1-888-330-2413 (Conference ID 70045, press # to reach an operator). We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC3Q2023EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.

About Enterprise Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $14.0 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” 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, including the COVID-19 pandemic, 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, 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																				Nine months ended
(in thousands, except per share data)	Sep 30, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022				Sep 30, 2022				Sep 30, 2023				Sep 30, 2022
EARNINGS SUMMARY
Net interest income	$	141,639			$	140,692			$	139,529			$	138,835			$	124,290			$	421,860			$	335,068
Provision (benefit) for credit losses		8,030				6,339				4,183				2,123				676				18,552				(2,734	)
Noninterest income		12,085				14,290				16,898				16,873				9,454				43,273				42,289
Noninterest expense		88,644				85,956				80,983				77,149				68,843				255,583				197,067
Income before income tax expense		57,050				62,687				71,261				76,436				64,225				190,998				183,024
Income tax expense		12,385				13,560				15,523				16,435				14,025				41,468				39,982
Net income		44,665				49,127				55,738				60,001				50,200				149,530				143,042
Preferred stock dividends		938				937				938				937				937				2,813				3,104
Net income available to common shareholders	$	43,727			$	48,190			$	54,800			$	59,064			$	49,263			$	146,717			$	139,938
Diluted earnings per common share	$	1.17			$	1.29			$	1.46			$	1.58			$	1.32			$	3.91			$	3.73
Return on average assets		1.26	%			1.44	%			1.72	%			1.83	%			1.51	%			1.47	%			1.42	%
Return on average common equity		11.00	%			12.48	%			14.85	%			16.52	%			13.74	%			12.73	%			13.09	%
ROATCE1		14.49	%			16.53	%			19.93	%			22.62	%			18.82	%			16.90	%			17.92	%
Net interest margin (tax equivalent)		4.33	%			4.49	%			4.71	%			4.66	%			4.10	%			4.50	%			3.64	%
Efficiency ratio		57.66	%			55.46	%			51.77	%			49.55	%			51.47	%			54.95	%			52.22	%
Core efficiency ratio1		56.18	%			54.04	%			50.47	%			48.10	%			49.80	%			53.55	%			50.46	%
Assets	$	14,025,042			$	13,871,154			$	13,325,982			$	13,054,172			$	12,994,787
Average assets	$	14,068,860			$	13,671,985			$	13,131,195			$	12,986,568			$	13,158,121			$	13,627,448			$	13,431,863
Period end common shares outstanding		37,385				37,359				37,311				37,253				37,223
Dividends per common share	$	0.25			$	0.25			$	0.25			$	0.24			$	0.23			$	0.75			$	0.66
Tangible book value per common share	$	31.06			$	31.23			$	30.55			$	28.67			$	26.62
Tangible common equity to tangible assets1		8.51	%			8.65	%			8.81	%			8.43	%			7.86	%
Total risk-based capital to risk-weighted assets2		14.1	%			14.1	%			14.3	%			14.2	%			14.2	%
1Refer to Reconciliations of Non-GAAP Financial Measures table 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, 2023				Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022				Sep 30, 2023				Sep 30, 2022
INCOME STATEMENTS
NET INTEREST INCOME
Interest income	$	200,906			$	187,897		$	169,033		$	156,737		$	135,695			$	557,836			$	358,345
Interest expense		59,267				47,205			29,504			17,902			11,405				135,976				23,277
Net interest income		141,639				140,692			139,529			138,835			124,290				421,860				335,068
Provision (benefit) for credit losses		8,030				6,339			4,183			2,123			676				18,552				(2,734	)
Net interest income after provision (benefit) for credit losses		133,609				134,353			135,346			136,712			123,614				403,308				337,802
NONINTEREST INCOME
Deposit service charges		4,187				3,910			4,128			4,463			4,951				12,225				13,863
Wealth management revenue		2,614				2,472			2,516			2,423			2,432				7,602				7,587
Card services revenue		2,560				2,464			2,338			2,345			2,652				7,362				9,206
Tax credit income (loss)		(2,673	)			368			1,813			2,389			(3,625	)			(492	)			169
Other income		5,397				5,076			6,103			5,253			3,044				16,576				11,464
Total noninterest income		12,085				14,290			16,898			16,873			9,454				43,273				42,289
NONINTEREST EXPENSE
Employee compensation and benefits		40,771				41,641			42,503			38,175			36,999				124,915				108,854
Occupancy		4,198				3,954			4,061			4,248			4,497				12,213				13,392
Deposit costs		20,987				16,980			12,720			13,256			7,661				50,688				17,826
Other expense		22,688				23,381			21,699			21,470			19,686				67,767				56,995
Total noninterest expense		88,644				85,956			80,983			77,149			68,843				255,583				197,067
Income before income tax expense		57,050				62,687			71,261			76,436			64,225				190,998				183,024
Income tax expense		12,385				13,560			15,523			16,435			14,025				41,468				39,982
Net income	$	44,665			$	49,127		$	55,738		$	60,001		$	50,200			$	149,530			$	143,042
Preferred stock dividends		938				937			938			937			937				2,813				3,104
Net income available to common shareholders	$	43,727			$	48,190		$	54,800		$	59,064		$	49,263			$	146,717			$	139,938
Basic earnings per common share	$	1.17			$	1.29		$	1.47		$	1.59		$	1.32			$	3.93			$	3.74
Diluted earnings per common share	$	1.17			$	1.29		$	1.46		$	1.58		$	1.32			$	3.91			$	3.73

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Quarter ended
($ in thousands)	Sep 30, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022				Sep 30, 2022
BALANCE SHEET
ASSETS
Cash and due from banks	$	190,806			$	202,702			$	210,813			$	229,580			$	264,078
Interest-earning deposits		184,245				125,328				81,241				69,808				489,825
Securities and other investments		2,279,578				2,340,821				2,338,746				2,309,512				2,171,942
Loans held for sale		212				551				261				1,228				785
Loans		10,616,820				10,512,623				10,011,918				9,737,138				9,354,987
Allowance for credit losses		(142,133	)			(141,319	)			(138,295	)			(136,932	)			(140,572	)
Total loans, net		10,474,687				10,371,304				9,873,623				9,600,206				9,214,415
Fixed assets, net		41,268				41,988				42,340				42,985				43,882
Goodwill		365,164				365,164				365,164				365,164				365,164
Intangible assets, net		13,425				14,544				15,680				16,919				18,217
Other assets		475,657				408,752				398,114				418,770				426,479
Total assets	$	14,025,042			$	13,871,154			$	13,325,982			$	13,054,172			$	12,994,787
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	3,852,486			$	3,880,561			$	4,192,523			$	4,642,732			$	4,642,539
Interest-bearing deposits		8,057,421				7,739,299				6,962,113				6,186,418				6,415,055
Total deposits		11,909,907				11,619,860				11,154,636				10,829,150				11,057,594
Subordinated debentures and notes		155,844				155,706				155,569				155,433				155,298
FHLB advances		—				150,000				100,000				100,000				—
Other borrowings		182,372				199,390				213,489				324,119				197,422
Other liabilities		165,039				127,965				109,468				123,207				138,255
Total liabilities		12,413,162				12,252,921				11,733,162				11,531,909				11,548,569
Shareholders’ equity:
Preferred stock		71,988				71,988				71,988				71,988				71,988
Common stock		374				374				373				373				372
Additional paid-in capital		992,044				988,355				984,281				982,660				979,543
Retained earnings		715,303				680,981				642,153				597,574				547,506
Accumulated other comprehensive loss		(167,829	)			(123,465	)			(105,975	)			(130,332	)			(153,191	)
Total shareholders’ equity		1,611,880				1,618,233				1,592,820				1,522,263				1,446,218
Total liabilities and shareholders’ equity	$	14,025,042			$	13,871,154			$	13,325,982			$	13,054,172			$	12,994,787

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Nine months ended
	September 30, 2023									September 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	$	10,203,291		$	503,458		6.60	%		$	9,116,072		$	317,271		4.65	%
Securities2		2,296,485			52,743		3.07				2,065,800			38,631		2.50
Interest-earning deposits		206,110			7,799		5.06				1,312,442			7,502		0.76
Total interest-earning assets		12,705,886			564,000		5.93				12,494,314			363,404		3.89
Noninterest-earning assets		921,562									937,549
Total assets	$	13,627,448								$	13,431,863
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing demand accounts	$	2,462,988		$	29,728		1.61	%		$	2,344,007		$	2,902		0.17	%
Money market accounts		2,942,970			62,397		2.83				2,810,278			9,797		0.47
Savings accounts		688,157			707		0.14				833,721			205		0.03
Certificates of deposit		1,139,489			28,555		3.35				584,213			2,492		0.57
Total interest-bearing deposits		7,233,604			121,387		2.24				6,572,219			15,396		0.31
Subordinated debentures and notes		155,633			7,306		6.28				155,093			6,790		5.85
FHLB advances		73,020			2,752		5.04				41,758			495		1.58
Securities sold under agreements to repurchase		174,783			2,422		1.85				220,703			224		0.14
Other borrowings		79,396			2,109		3.55				21,402			372		2.32
Total interest-bearing liabilities		7,716,436			135,976		2.36				7,011,175			23,277		0.44
Noninterest-bearing liabilities:
Demand deposits		4,178,038									4,819,718
Other liabilities		119,883									99,458
Total liabilities		12,014,357									11,930,351
Shareholders' equity		1,613,091									1,501,512
Total liabilities and shareholders' equity	$	13,627,448								$	13,431,863
Total net interest income				$	428,024								$	340,127
Net interest margin							4.50	%								3.64	%
1 Average balances include nonaccrual loans. Interest income includes loan fees of $10.7 million and $13.0 million for the nine months ended September 30, 2023 and September 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 $6.2 million and $5.1 million for the nine months ended September 30, 2023 and 2022, respectively.

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Quarter ended
($ in thousands)	Sep 30, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022				Sep 30, 2022
LOAN PORTFOLIO
Commercial and industrial	$	4,448,535			$	4,360,862			$	4,032,189			$	3,859,882			$	3,709,893
Commercial real estate		4,794,355				4,802,293				4,699,302				4,628,371				4,438,647
Construction real estate		723,796				671,573				663,264				611,565				583,649
Residential real estate		376,120				368,867				364,059				395,537				397,450
Other		274,014				309,028				253,104				241,783				225,348
Total loans	$	10,616,820			$	10,512,623			$	10,011,918			$	9,737,138			$	9,354,987
DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts	$	3,852,486			$	3,880,561			$	4,192,523			$	4,642,732			$	4,642,539
Interest-bearing demand accounts		2,749,598				2,629,339				2,395,901				2,256,295				2,270,898
Money market and savings accounts		3,837,145				3,577,856				3,672,539				3,399,415				3,617,249
Brokered certificates of deposit		695,551				893,808				369,505				118,968				129,039
Other certificates of deposit		775,127				638,296				524,168				411,740				397,869
Total deposits	$	11,909,907			$	11,619,860			$	11,154,636			$	10,829,150			$	11,057,594
AVERAGE BALANCES
Loans	$	10,521,966			$	10,284,873			$	9,795,045			$	9,423,984			$	9,230,738
Securities		2,302,850				2,297,995				2,288,451				2,204,211				2,202,255
Interest-earning assets		13,160,587				12,756,653				12,189,750				11,995,295				12,198,251
Assets		14,068,860				13,671,985				13,131,195				12,986,568				13,158,121
Deposits		11,922,534				11,387,813				10,913,489				11,002,614				11,154,895
Shareholders’ equity		1,648,605				1,621,337				1,568,451				1,490,592				1,494,504
Tangible common equity1		1,197,486				1,169,091				1,115,052				1,035,896				1,038,495
YIELDS (tax equivalent)
Loans		6.80	%			6.64	%			6.33	%			5.87	%			5.10	%
Securities		3.11				3.06				3.03				2.91				2.65
Interest-earning assets		6.12				5.97				5.69				5.25				4.47
Interest-bearing deposits		2.77				2.26				1.56				0.94				0.54
Deposits		1.84				1.46				0.92				0.53				0.31
Subordinated debentures and notes		6.28				6.27				6.28				6.07				5.91
FHLB advances and other borrowed funds		2.76				3.45				2.60				1.39				0.66
Interest-bearing liabilities		2.84				2.40				1.72				1.07				0.67
Net interest margin		4.33				4.49				4.71				4.66				4.10
1Refer 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)	Sep 30, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022				Sep 30, 2022
ASSET QUALITY
Net charge-offs (recoveries)	$	6,856			$	2,973			$	(264	)		$	2,075			$	478
Nonperforming loans		48,932				16,112				11,972				9,981				18,184
Classified assets		184,393				108,065				110,384				99,122				98,078
Nonperforming loans to total loans		0.46	%			0.15	%			0.12	%			0.10	%			0.19	%
Nonperforming assets to total assets		0.40	%			0.12	%			0.09	%			0.08	%			0.14	%
Allowance for credit losses to total loans		1.34	%			1.34	%			1.38	%			1.41	%			1.50	%
Allowance for credit losses to nonperforming loans		290.5	%			877.1	%			1,155.2	%			1,371.9	%			773.1	%
Net charge-offs (recoveries) to average loans -annualized		0.26	%			0.12	%			(0.01	)%			0.09	%			0.02	%
WEALTH MANAGEMENT
Trust assets under management	$	2,129,408			$	1,992,563			$	1,956,146			$	1,885,394			$	1,691,230
MARKET DATA
Book value per common share	$	41.19			$	41.39			$	40.76			$	38.93			$	36.92
Tangible book value per common share1	$	31.06			$	31.23			$	30.55			$	28.67			$	26.62
Market value per share	$	37.50			$	39.10			$	44.59			$	48.96			$	44.04
Period end common shares outstanding		37,385				37,359				37,311				37,253				37,223
Average basic common shares		37,405				37,347				37,305				37,257				37,241
Average diluted common shares		37,520				37,495				37,487				37,415				37,347
CAPITAL
Total risk-based capital to risk-weighted assets2		14.1	%			14.1	%			14.3	%			14.2	%			14.2	%
Tier 1 capital to risk-weighted assets2		12.6	%			12.5	%			12.6	%			12.6	%			12.6	%
Common equity tier 1 capital to risk-weighted assets2		11.2	%			11.1	%			11.2	%			11.1	%			11.0	%
Tangible common equity to tangible assets1		8.51	%			8.65	%			8.81	%			8.43	%			7.86	%
1Refer to Reconciliations of Non-GAAP Financial Measures table 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, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022				Sep 30, 2022				Sep 30, 2023				Sep 30, 2022
CORE EFFICIENCY RATIO
Net interest income (GAAP)	$	141,639			$	140,692			$	139,529			$	138,835			$	124,290			$	421,860			$	335,068
Tax-equivalent adjustment		2,061				2,062				2,041				1,983				1,854				6,164				5,059
Noninterest income (GAAP)		12,085				14,290				16,898				16,873				9,454				43,273				42,289
Less gain on sale of investment securities		—				—				381				—				—				381				—
Less gain (loss) on sale of other real estate owned		—				97				90				—				(22	)			187				(93	)
Core revenue (non-GAAP)		155,785				156,947				157,997				157,691				135,620				470,729				382,509
Noninterest expense (GAAP)		88,644				85,956				80,983				77,149				68,843				255,583				197,067
Less amortization on intangibles		1,118				1,136				1,239				1,299				1,310				3,493				4,068
Core noninterest expense (non-GAAP)		87,526				84,820				79,744				75,850				67,533				252,090				192,999
Core efficiency ratio (non-GAAP)		56.18	%			54.04	%			50.47	%			48.10	%			49.80	%			53.55	%			50.46	%

	Quarter ended
($ in thousands)	Sep 30, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022				Sep 30, 2022
TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Shareholders’ equity	$	1,611,880			$	1,618,233			$	1,592,820			$	1,522,263			$	1,446,218
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		13,425				14,544				15,680				16,919				18,217
Tangible common equity	$	1,161,303			$	1,166,537			$	1,139,988			$	1,068,192			$	990,849
Less net unrealized losses on HTM portfolio, after tax of 25.2%		81,367				53,611				48,630				61,435				81,752
Tangible common equity adjusted for unrealized losses on HTM securities	$	1,079,936			$	1,112,926			$	1,091,358			$	1,006,757			$	909,097
Common shares outstanding		37,385				37,359				37,311				37,253				37,223
Tangible book value per share	$	31.06			$	31.23			$	30.55			$	28.67			$	26.62
Total assets	$	14,025,042			$	13,871,154			$	13,325,982			$	13,054,172			$	12,994,787
Less goodwill		365,164				365,164				365,164				365,164				365,164
Less intangible assets		13,425				14,544				15,680				16,919				18,217
Tangible assets	$	13,646,453			$	13,491,446			$	12,945,138			$	12,672,089			$	12,611,406
Tangible common equity to tangible assets		8.51	%			8.65	%			8.81	%			8.43	%			7.86	%
Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities		7.91	%			8.25	%			8.43	%			7.94	%			7.21	%

	Quarter Ended																				Nine months ended
($ in thousands)	Sep 30, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022				Sep 30, 2022				Sep 30, 2023				Sep 30, 2022
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE)
Average shareholder’s equity	$	1,648,605			$	1,621,337			$	1,568,451			$	1,490,592			$	1,494,504			$	1,613,091			$	1,501,512
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		13,967				15,094				16,247				17,544				18,857				15,094				20,181
Average tangible common equity	$	1,197,486			$	1,169,091			$	1,115,052			$	1,035,896			$	1,038,495			$	1,160,845			$	1,044,179
Net income available to common shareholders (GAAP)	$	43,727			$	48,190			$	54,800			$	59,064			$	49,263			$	146,717			$	139,938
ROATCE		14.49	%			16.53	%			19.93	%			22.62	%			18.82	%			16.90	%			17.92	%

	Quarter ended																				Nine months ended
($ in thousands)	Sep 30, 2023				Jun 30, 2023				Mar 31, 2023				Dec 31, 2022				Sep 30, 2022				Sep 30, 2023				Sep 30, 2022
CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)
Net interest income	$	141,639			$	140,692			$	139,529			$	138,835			$	124,290			$	421,860			$	335,068
Noninterest income		12,085				14,290				16,898				16,873				9,454				43,273				42,289
Less gain on sale of investment securities		—				—				381				—				—				381				—
Less gain (loss) on sale of other real estate owned		—				97				90				—				(22	)			187				(93	)
Less noninterest expense		88,644				85,956				80,983				77,149				68,843				255,583				197,067
PPNR	$	65,080			$	68,929			$	74,973			$	78,559			$	64,923			$	208,982			$	180,383
Average assets	$	14,068,860			$	13,671,985			$	13,131,195			$	12,986,568			$	13,158,121			$	13,627,448			$	13,431,863
ROAA - GAAP		1.26	%			1.44	%			1.72	%			1.83	%			1.51	%			1.47	%			1.42	%
PPNR ROAA		1.84	%			2.02	%			2.32	%			2.40	%			1.96	%			2.05	%			1.80	%

	Quarter ended
($ in thousands)	Sep 30, 2023				Jun 30, 2023
CALCULATION OF ESTIMATED INSURED DEPOSITS
Estimated uninsured deposits per Call Report	$	3,886,299			$	3,821,266
Collateralized/affiliate deposits		(455,553	)			(508,100	)
Accrued interest on deposits		(6,231	)			(5,052	)
Adjusted uninsured/uncollateralized deposits		3,424,515				3,308,114
Estimated insured/collateralized deposits		8,485,392				8,311,746
Total deposits	$	11,909,907			$	11,619,860

 

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The Enterprise Financial Services Stock at the time of publication of the news with a raise of 0,00 % to 35,67USD on Nasdaq stock exchange (23. Oktober 2023, 21:50 Uhr).