First Quarter Results
- Net income of $40.4 million, or $1.05 per diluted common
share, compared to $1.16 in the linked quarter and $1.46 in the
prior year quarter
- Net interest margin of 4.13%, quarterly decrease of 10 basis
points
- Net interest income of $137.7 million, quarterly decrease of
$3.0 million
- Total loans of $11.0 billion, quarterly increase of $144.4
million
- Total deposits of $12.3 billion, quarterly increase of $77.3
million
- Return on Average Assets (“ROAA”) of 1.12%, compared to
1.23% and 1.72% in the linked and prior year quarters,
respectively
- Return on Average Tangible Common Equity (“ROATCE”)1 of
12.31%, compared to 14.38% and 19.93% in the linked and prior year
quarters, respectively
- Tangible common equity to tangible assets1 of 9.01%, an
increase of 5 basis points and 20 basis points from the linked and
prior year quarters, respectively
- Tangible book value per share1 of $34.21, annualized
increase of 4%
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 first quarter
earnings, “Our first quarter results were fundamentally sound and
2024 is off to a good start. Customer activity remains robust, and
our loan and deposit pipelines are strong. We had a return on
average assets of 1.12% and grew tangible common equity to over 9%
of tangible assets. Credit quality metrics are stable and we
continue to maintain an appropriate reserve level. We are excited
about the opportunities in our markets and are optimistic for the
remainder of the year.”
Highlights
- Earnings - Net income in the first quarter 2024 was
$40.4 million, a decrease of $4.1 million and $15.3 million
compared to the linked and prior year quarters, respectively.
Earnings per share (“EPS”) was $1.05 per diluted common share for
the first quarter 2024, compared to $1.16 and $1.46 per diluted
common share for the linked and prior year quarters, respectively.
Adjusted diluted earnings per share1 was $1.07 for the first
quarter 2024, compared to $1.21 for the linked quarter.
- Pre-provision net revenue (“PPNR”)1 - PPNR of $57.4
million in the first quarter 2024 decreased $18.4 million and $17.6
million from the linked and prior year quarters, respectively. The
decrease from the linked quarter was primarily due to a decrease in
net interest income due to one less day in the current quarter and
an increase in interest expense, a decrease in tax credit income
that is typically highest in the fourth quarter of each year, and
an increase in compensation and benefits from the annual payroll
tax and vacation reset, along with merit increases. The decrease
compared to the prior year quarter was primarily due to the higher
interest rate environment that increased deposit interest expense
and the cost of variable deposit services charges, which are
influenced by current market rates.
- Net interest income and net interest margin (“NIM”) -
Net interest income of $137.7 million for the first quarter 2024
decreased $3.0 million and $1.8 million from the linked and prior
year quarters, respectively. NIM was 4.13% for the first quarter
2024, compared to 4.23% and 4.71% for the linked and prior year
quarters, respectively. The total cost of deposits of 2.13% for the
first quarter 2024 increased 10 basis points and 121 basis points
from the linked and prior year quarters, respectively. Compared to
the linked quarter, net interest income declined due to one less
day in the current quarter and higher deposit interest expense,
partially offset by higher average loan and investment
balances.
- Noninterest income - Noninterest income of $12.2 million
for the first quarter 2024 decreased $13.3 million and $4.7 million
from the linked and prior year quarters, respectively. The decline
from the linked and prior year quarters was primarily due to a
decrease in tax credit income on lower activity and an increase in
market interest rates that reduced the fair value of certain tax
credits.
- Noninterest expense - Noninterest expense of $93.5
million for the first quarter 2024 increased $0.9 million and $12.5
million from the linked and prior year quarters, respectively. The
increase from the linked quarter was primarily driven by employee
compensation, partially offset by a decrease in the FDIC special
assessment and variable deposit servicing costs. The increase from
the prior year quarter was primarily due to variable deposit
servicing costs and employee compensation.
- Loans - Loans totaled $11.0 billion at March 31, 2024,
an increase of $144.4 million, or 5.3% on an annualized basis, from
the linked quarter and an increase of $1.0 billion from the prior
year quarter. Average loans totaled $10.9 billion for the quarter
ended March 31, 2024, compared to $10.7 billion and $9.8 billion
for the linked and prior year quarters, respectively.
- Asset quality - The allowance for credit losses to total
loans was 1.23% at March 31, 2024, compared to 1.24% at December
31, 2023 and 1.38% at March 31, 2023. The ratio of nonperforming
assets to total assets was 0.30% at March 31, 2024, compared to
0.34% and 0.09% at December 31, 2023 and March 31, 2023,
respectively. The provision for credit losses recorded in the first
quarter 2024 was $5.8 million, compared to $18.1 million and $4.2
million for the linked and prior year quarters, respectively.
- Deposits - Total deposits increased $77.3 million from
December 31, 2023 to $12.3 billion at March 31, 2024, including a
$176.2 million increase in brokered certificates of deposit.
Average deposits were $12.2 billion for both the current and linked
quarters and $10.9 billion for the prior year quarter. At March 31,
2024, noninterest-bearing deposit accounts totaled $3.8 billion, or
31.1% of total deposits, and the loan to deposit ratio was
90.0%.
- Liquidity - The Company’s total available on- and
off-balance-sheet liquidity was approximately $5.6 billion at March
31, 2024. On-balance-sheet liquidity consisted of cash of $369.4
million and $1.1 billion in unpledged investment securities at
March 31, 2024. Off-balance-sheet liquidity consisted of $1.3
billion available through the Federal Home Loan Bank, $2.6 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 $1.7 billion
and the tangible common equity to tangible assets ratio2 was 9.01%
at March 31, 2024, compared to 8.96% at December 31, 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 13.2% at March 31, 2024. The Company’s common equity tier
1 ratio and total risk-based capital ratio were 11.4% and 14.3%,
respectively, at March 31, 2024. The Company’s board of directors
approved a quarterly dividend of $0.26 per common share, payable on
June 28, 2024 to shareholders of record as of June 14, 2024. The
board of directors also declared a cash dividend of $12.50 per
share of Series A Preferred Stock (or $0.3125 per depositary share)
representing a 5% per annum rate for the period commencing (and
including) March 15, 2024 to (but excluding) June 15, 2024. The
dividend will be payable on June 15, 2024 and will be paid on June
17, 2024 to holders of record of Series A Preferred Stock as of
June 3, 2024.
Net Interest Income and NIM
Average Balance Sheets
The following table presents, for the periods indicated, certain
information related to the Company’s average interest-earning
assets and interest-bearing liabilities, as well as the
corresponding average interest rates earned and paid, all on a
tax-equivalent basis.
Quarter ended
March 31, 2024
December 31, 2023
March 31, 2023
($ in thousands)
Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Average
Yield/
Rate
Assets
Interest-earning assets:
Loans1, 2
$
10,927,932
$
186,703
6.87
%
$
10,685,961
$
184,982
6.87
%
$
9,795,045
$
152,762
6.33
%
Securities2
2,400,571
19,491
3.27
2,276,915
18,385
3.20
2,288,451
17,117
3.03
Interest-earning deposits
268,068
3,569
5.35
420,762
5,631
5.31
106,254
1,195
4.56
Total interest-earning assets
13,596,571
209,763
6.20
13,383,638
208,998
6.20
12,189,750
171,074
5.69
Noninterest-earning assets
959,548
949,166
941,445
Total assets
$
14,556,119
$
14,332,804
$
13,131,195
Liabilities and Shareholders’
Equity
Interest-bearing liabilities:
Interest-bearing demand accounts
$
2,924,276
$
18,612
2.56
%
$
2,844,847
$
17,248
2.41
%
$
2,201,910
$
5,907
1.09
%
Money market accounts
3,401,802
31,357
3.71
3,342,979
30,579
3.63
2,826,836
15,471
2.22
Savings accounts
587,113
303
0.21
609,645
268
0.17
732,256
230
0.13
Certificates of deposit
1,341,990
14,201
4.26
1,373,808
14,241
4.11
670,521
3,053
1.85
Total interest-bearing deposits
8,255,181
64,473
3.14
8,171,279
62,336
3.03
6,431,523
24,661
1.56
Subordinated debentures and notes
156,046
2,484
6.40
155,907
2,475
6.30
155,497
2,409
6.28
FHLB advances
73,791
1,029
5.61
—
—
—
110,928
1,332
4.87
Securities sold under agreements to
repurchase
204,898
1,804
3.54
150,827
1,226
3.22
215,604
749
1.41
Other borrowings
42,736
205
1.93
49,013
314
2.54
53,885
353
2.66
Total interest-bearing liabilities
8,732,652
69,995
3.22
8,527,026
66,351
3.09
6,967,437
29,504
1.72
Noninterest-bearing liabilities:
Demand deposits
3,925,522
3,992,067
4,481,966
Other liabilities
159,247
160,829
113,341
Total liabilities
12,817,421
12,679,922
11,562,744
Shareholders' equity
1,738,698
1,652,882
1,568,451
Total liabilities and shareholders'
equity
$
14,556,119
$
14,332,804
$
13,131,195
Total net interest income
$
139,768
$
142,647
$
141,570
Net interest margin
4.13
%
4.23
%
4.71
%
1 Average balances include nonaccrual
loans. Interest income includes loan fees of $2.4 million, $3.1
million, and $3.7 million for the three months ended March 31,
2024, December 31, 2023, and March 31, 2023, respectively.
2 Non-taxable income is presented on a
fully tax-equivalent basis using a tax rate of approximately 25%.
The tax-equivalent adjustments were $2.0 million, $1.9 million, and
$2.0 million for the three months ended March 31, 2024, December
31, 2023, and March 31, 2023, respectively.
Net interest income for the first quarter 2024 was $137.7
million, a decrease of $3.0 million and $1.8 million from the
linked and prior year quarters, respectively. Net interest income
on a tax equivalent basis was $139.8 million, $142.6 million and
$141.6 million for the current, linked and prior year quarters,
respectively. The decrease from the linked quarter was primarily
due to the impact of competitive deposit pricing, continued
remixing into higher cost deposit categories and an increase in
wholesale borrowings. The decrease from the prior year quarter
reflects higher interest expense on the deposit portfolio, as
lagged deposit rates have increased, partially offset by the
benefit of higher market interest rates on interest-earning assets
and organic growth.
Interest income increased $0.6 million during the first quarter
2024. Interest on loans benefited from a $242.0 million increase in
average loan balances compared to the linked quarter. The average
interest rate of new loan originations in the first quarter 2024
was 7.84%. Interest on cash accounts decreased $2.1 million from
the linked quarter due to a decline in average balances, while
interest on securities increased $1.0 million due to an increase in
both the average balance and yield due to the reinvestment of cash
flows from the portfolio.
Interest expense increased $3.6 million in the first quarter
2024 primarily due to a $2.1 million increase in deposit interest
expense and a $1.5 million increase in interest expense on
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 interest-bearing
demand accounts, as well as higher rates paid on deposits. The
average cost of interest-bearing deposits was 3.14%, an increase of
11 basis points compared to the linked quarter. The total cost of
deposits, including noninterest-bearing demand accounts, was 2.13%
during the first quarter 2024, compared to 2.03% in the linked
quarter. The increase in interest expense on other borrowings was
primarily due to higher average borrowings to fund net loan
growth.
NIM, on a tax equivalent basis, was 4.13% in the first quarter
2024, a decrease of 10 basis points from the linked quarter and a
decrease of 58 basis points from the prior year quarter. NIM in the
first quarter 2024 was impacted by a $62.5 million improvement in
the average unrealized loss on the investment portfolio, which
reduced NIM by two basis points when compared to the linked
quarter. For the month of March 2024, the loan portfolio yield was
6.89% and the cost of total deposits was 2.17%.
Investments
Quarter ended
March 31, 2024
December 31, 2023
March 31, 2023
($ in thousands)
Carrying
Value
Net
Unrealized
Loss
Carrying
Value
Net
Unrealized
Loss
Carrying
Value
Net
Unrealized
Loss
Available-for-sale (AFS)
$
1,611,883
$
(165,586
)
$
1,618,273
$
(150,861
)
$
1,555,109
$
(161,572
)
Held-to-maturity (HTM)
758,017
(63,593
)
750,434
(54,572
)
720,694
(65,013
)
Total
$
2,369,900
$
(229,179
)
$
2,368,707
$
(205,433
)
$
2,275,803
$
(226,585
)
Investment securities totaled $2.4 billion at March 31, 2024, an
increase of $1.2 million from the linked quarter. Investment
purchases in the first quarter 2024 had a weighted average, tax
equivalent yield of 5.21%. The tangible common equity to tangible
assets ratio adjusted for unrealized losses on held-to-maturity
securities3 was 8.68% at March 31, 2024, compared to 8.67% at
December 31, 2023.
Loans
The following table presents total loans for the most recent
five quarters:
At
($ in thousands)
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
March 31,
2023
C&I
$
2,263,817
$
2,186,203
$
2,020,303
$
2,029,370
$
2,005,539
CRE investor owned
2,280,990
2,291,660
2,260,220
2,290,701
2,239,932
CRE owner occupied
1,279,929
1,262,264
1,255,885
1,208,675
1,173,985
SBA loans*
1,274,780
1,281,632
1,309,497
1,327,667
1,315,732
Sponsor finance*
865,180
872,264
888,000
879,491
677,529
Life insurance premium financing*
1,003,597
956,162
928,486
912,274
859,910
Tax credits*
718,383
734,594
683,580
609,137
547,513
Residential real estate
354,615
359,957
364,618
354,588
348,726
Construction and land development
726,742
670,567
639,555
599,375
590,509
Other
260,459
268,815
266,676
301,345
252,543
Total loans
$
11,028,492
$
10,884,118
$
10,616,820
$
10,512,623
$
10,011,918
Quarterly loan yield
6.87
%
6.87
%
6.80
%
6.64
%
6.33
%
Variable interest rate loans to total
loans
61
%
61
%
61
%
62
%
63
%
*Specialty loan category
Loans totaled $11.0 billion at March 31, 2024, increasing $144.4
million, compared to the linked quarter. During the current
quarter, C&I loans increased $77.6 million, construction loans
increased $56.2 million and specialty loans increased $17.3
million, primarily due to growth in life insurance premium finance
loans. Loan sales of $23.1 million mitigated growth in the SBA
category during the current quarter. Average line utilization was
approximately 44% for the quarter ended March 31, 2024, compared to
42% for the linked and prior year quarters.
Asset Quality
The following table presents the categories of nonperforming
assets and related ratios for the most recent five quarters:
At
($ in thousands)
March 31, 2024
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
Nonperforming loans*
$
35,642
$
43,728
$
48,932
$
16,112
$
11,972
Other
8,466
5,736
6,933
—
250
Nonperforming assets*
$
44,108
$
49,464
$
55,865
$
16,112
$
12,222
Nonperforming loans to total loans
0.32
%
0.40
%
0.46
%
0.15
%
0.12
%
Nonperforming assets to total assets
0.30
%
0.34
%
0.40
%
0.12
%
0.09
%
Allowance for credit losses to total
loans
1.23
%
1.24
%
1.34
%
1.34
%
1.38
%
Quarterly net charge-offs (recoveries)
$
5,864
$
28,479
$
6,856
$
2,973
$
(264
)
*Guaranteed balances excluded
$
9,630
$
10,682
$
5,974
$
6,666
$
6,835
Nonperforming assets decreased $5.4 million during the first
quarter 2024 and increased $31.9 million from the prior year
quarter. The decrease in nonperforming assets in the current
quarter was driven primarily by gross charge-offs of $6.7 million,
including $4.8 million on two relationships that moved to
nonperforming status in the fourth quarter 2023. Included in that
amount was $3.4 million related to the Agricultural relationship
that was disclosed in the fourth quarter 2023 and has now been
fully charged-off. The increase in nonperforming assets from the
prior year quarter was primarily due to a $26.4 million increase in
real estate loans and an $8.2 million increase in OREO and other
repossessed assets, partially offset by a $2.8 million decrease in
C&I loans. Annualized net charge-offs totaled 22 basis points
of average loans in the first quarter 2024, compared to 106 basis
points in the linked quarter and a net recovery of 1 basis point in
the prior year quarter.
The provision for credit losses totaled $5.8 million in the
first quarter 2024, compared to $18.1 million and $4.2 million in
the linked and prior year quarters, respectively. The provision for
credit losses in the first quarter 2024 was primarily related to
net charge-offs and updates to qualitative factors used in the
allowance calculation. The decrease in the provision for credit
losses from the linked quarter is commensurate to the decrease in
charge-offs from the linked quarter.
The allowance for credit losses to total loans was 1.23% at
March 31, 2024, compared to 1.24% and 1.38% at December 31, 2023
and March 31, 2023, respectively.
Deposits
The following table presents deposits broken out by type for the
most recent five quarters:
At
($ in thousands)
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
March 31,
2023
Noninterest-bearing demand accounts
$
3,805,334
$
3,958,743
$
3,852,486
$
3,880,561
$
4,192,523
Interest-bearing demand accounts
2,956,282
2,950,259
2,749,598
2,629,339
2,395,901
Money market and savings accounts
4,006,702
3,994,455
3,837,145
3,577,856
3,672,539
Brokered certificates of deposit
659,005
482,759
695,551
893,808
369,505
Other certificates of deposit
826,378
790,155
775,127
638,296
524,168
Total deposit portfolio
$
12,253,701
$
12,176,371
$
11,909,907
$
11,619,860
$
11,154,636
Noninterest-bearing deposits to total
deposits
31.1
%
32.5
%
32.3
%
33.4
%
37.6
%
Quarterly cost of deposits
2.13
%
2.03
%
1.84
%
1.46
%
0.92
%
Total deposits at March 31, 2024 were $12.3 billion, an increase
of $77.3 million and $1.1 billion from the linked and prior year
quarters, respectively. Excluding brokered certificates of
deposits, total deposits declined $98.9 million and increased
$809.6 million, from the linked and prior year quarters,
respectively. The decrease in demand accounts in the first quarter
2024 was primarily related to normal, seasonal deposit outflows.
Reciprocal deposits, which are placed through third party programs
to provide FDIC insurance on larger deposit relationships, totaled
$1.1 billion at March 31, 2024, compared to $1.2 billion at
December 31, 2023.
Total estimated insured deposits4, which includes collateralized
deposits, reciprocal accounts and accounts that qualify for
pass-through insurance, totaled $8.7 billion, or 71% of total
deposits, at March 31, 2024, compared to $8.3 billion, or 69% of
total deposits, at December 31, 2023.
Noninterest Income
The following table presents a comparative summary of the major
components of noninterest income for the periods indicated:
Linked quarter comparison
Prior year comparison
Quarter ended
Quarter ended
($ in thousands)
March 31,
2024
December 31,
2023
Increase
(decrease)
March 31,
2023
Increase
(decrease)
Deposit service charges
$
4,423
$
4,334
$
89
2
%
$
4,128
$
295
7
%
Wealth management revenue
2,544
2,428
116
5
%
2,516
28
1
%
Card services revenue
2,412
2,666
(254
)
(10
)%
2,338
74
3
%
Tax credit income (loss)
(2,190
)
9,688
(11,878
)
(123
)%
1,813
(4,003
)
(221
)%
Other income
4,969
6,336
(1,367
)
(22
)%
6,103
(1,134
)
(19
)%
Total noninterest income
$
12,158
$
25,452
$
(13,294
)
(52
)%
$
16,898
$
(4,740
)
(28
)%
Total noninterest income was $12.2 million for the first quarter
2024, a decrease of $13.3 million from the linked quarter and a
decrease of $4.7 million from the prior year quarter. The decrease
from the linked and prior year quarters was primarily due to a
decrease in tax credit income. Tax credit income is typically
highest in the fourth quarter of each year and will vary in other
periods based on transaction volumes and fair value changes on
credits carried at fair value.
The following table presents a comparative summary of the major
components of other income for the periods indicated:
Linked quarter comparison
Prior year comparison
Quarter ended
Quarter ended
($ in thousands)
March 31,
2024
December 31,
2023
Increase
(decrease)
March 31,
2023
Increase
(decrease)
Gain on SBA loan sales
$
1,415
$
—
$
1,415
100
%
$
501
$
914
182
%
BOLI
864
1,279
(415
)
(32
)%
791
73
9
%
Community development investments
585
1,027
(442
)
(43
)%
595
(10
)
(2
)%
Private equity fund distributions
162
725
(563
)
(78
)%
1,749
(1,587
)
(91
)%
Servicing fees
287
774
(487
)
(63
)%
512
(225
)
(44
)%
Swap fees
45
163
(118
)
(72
)%
250
(205
)
(82
)%
Miscellaneous income
1,611
2,368
(757
)
(32
)%
1,705
(94
)
(6
)%
Total other income
$
4,969
$
6,336
$
(1,367
)
(22
)%
$
6,103
$
(1,134
)
(19
)%
The decrease in other income from the linked quarter was
primarily driven by lower community development and private equity
distributions, BOLI income and servicing fees. Community
development and private equity distributions are not consistent
sources of income and fluctuate based on distributions from the
underlying funds. BOLI income in the linked quarter included a
policy benefit payment that did not recur. Servicing fee income
fluctuates based on prepayment experience and changes to the
discount rate used in the valuation of the servicing rights. These
decreases were partially offset by a $1.4 million gain on the sale
of SBA loans in the first quarter 2024.
Noninterest Expense
The following table presents a comparative summary of the major
components of noninterest expense for the periods indicated:
Linked quarter comparison
Prior year comparison
Quarter ended
Quarter ended
($ in thousands)
March 31,
2024
December 31, 2023
Increase
(decrease)
March 31,
2023
Increase
(decrease)
Employee compensation and benefits
$ 45,262
$ 39,651
$ 5,611
14 %
$ 42,503
$ 2,759
6 %
Deposit costs
20,277
21,606
(1,329)
(6) %
12,720
7,557
59 %
Occupancy
4,326
4,313
13
— %
4,061
265
7 %
FDIC special assessment
625
2,412
(1,787)
(74) %
—
625
100 %
Core conversion expense
350
—
350
100 %
—
350
100 %
Other expense
22,661
24,621
(1,960)
(8) %
21,699
962
4 %
Total noninterest expense
$ 93,501
$ 92,603
$ 898
1 %
$ 80,983
$ 12,518
15 %
Employee compensation and benefits increased $5.6 million from
the linked quarter primarily due to the annual reset of payroll
taxes and vacation, along with annual merit increases that became
effective March 1, 2024. The FDIC special assessment of $0.6
million and $2.4 million in the current and linked quarters,
respectively, is an assessment from the FDIC to recover estimated
losses in the Deposit Insurance Fund related to bank failures in
2023. The assessment may change in future periods as the FDIC
updates its loss estimates. Deposit costs relate to certain
specialized deposit businesses that receive an earnings credit
allowance for deposit related expenses that are impacted by
interest rates and average balances. Deposit costs decreased $1.3
million from the linked quarter primarily due to the expiration of
certain allowances that were not used.
The increase in noninterest expense of $12.5 million from the
prior year quarter was primarily due to an increase in the
associate base, merit increases throughout 2023 and 2024, and an
increase in variable deposit costs due to higher earnings credit
rates and average balances.
For the first quarter 2024, the Company’s core efficiency ratio5
was 60.2%, compared to 53.1% for the linked quarter and 50.5% for
the prior year quarter.
Income Taxes
The Company’s effective tax rate was 20.2%, compared to 19.8%
and 21.8% in the linked and prior year quarters, respectively. The
increase in the effective tax rate from the linked quarter was
driven by a state apportionment adjustment that lowered the
effective tax rate in the linked quarter, while the decrease from
the prior year quarter was driven by tax credit opportunities the
Company has deployed as part of its tax planning strategy.
Capital
The following table presents the Company’s total equity and
various capital ratios for the most recent five quarters:
At
($ in thousands)
March 31,
2024
December 31,
2023
September 30,
2023
June 30,
2023
March 31,
2023
Shareholders’ equity
$
1,731,725
$
1,716,068
$
1,611,880
$
1,618,233
$
1,592,820
Total risk-based capital to risk-weighted
assets
14.3
%
14.2
%
14.1
%
14.1
%
14.3
%
Tier 1 capital to risk weighted assets
12.8
%
12.7
%
12.6
%
12.5
%
12.6
%
Common equity tier 1 capital to
risk-weighted assets
11.4
%
11.3
%
11.2
%
11.1
%
11.2
%
Leverage ratio
11.0
%
11.0
%
10.9
%
11.0
%
11.1
%
Tangible common equity to tangible
assets
9.01
%
8.96
%
8.51
%
8.65
%
8.81
%
*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 $1.7 billion at March 31, 2024, an increase of
$15.7 million from the linked quarter. The Company’s tangible
common book value per share was $34.21 at March 31, 2024, compared
to $33.85 and $30.55 at December 31, 2023 and March 31, 2023,
respectively.
The Company’s regulatory capital ratios continue to exceed the
“well-capitalized” regulatory benchmark. Capital ratios for the
current quarter are subject to, among other things, completion and
filing of the Company’s regulatory reports and ongoing regulatory
review.
________________________________
1 ROATCE, tangible common equity to
tangible assets, tangible book value per share, adjusted diluted
earnings per share and PPNR are non-GAAP measures. Please refer to
discussion and reconciliation of these measures in the accompanying
financial tables.
2 Tangible common equity to tangible
assets ratio is a non-GAAP measure. Please refer to discussion and
reconciliation of this measure in the accompanying financial
tables.
3 The tangible common equity to tangible
assets ratio adjusted for unrealized losses on held-to-maturity
securities is a non-GAAP measure. Refer to discussion and
reconciliation of this measure in the accompanying financial
tables.
4 Estimated insured deposits 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, core efficiency ratio, the
tangible common equity ratio, tangible book value per common share,
estimated insured deposits and adjusted diluted earnings per share,
in this release that are considered “non-GAAP financial measures.”
Generally, a non-GAAP financial measure is a numerical measure of a
company’s financial performance, financial position, or cash flows
that exclude (or include) amounts that are included in (or excluded
from) the most directly comparable measure calculated and presented
in accordance with GAAP.
The Company considers its tangible common equity, PPNR, ROATCE,
core efficiency ratio, the tangible common equity ratio, tangible
book value per common share, estimated insured deposits and
adjusted diluted earnings per share, collectively “core performance
measures,” presented in this earnings release and the included
tables as important measures of financial performance, even though
they are non-GAAP measures, as they provide supplemental
information by which to evaluate the impact of certain
non-comparable items, and the Company’s operating performance on an
ongoing basis. Core performance measures exclude certain other
income and expense items, such as the FDIC special assessment, core
conversion expenses, merger-related expenses, facilities charges,
and the gain or loss on sale of investment securities, that the
Company believes to be not indicative of or useful to measure the
Company’s operating performance on an ongoing basis. The attached
tables contain a reconciliation of these core performance measures
to the GAAP measures. The Company believes that the tangible common
equity ratio provides useful information to investors about the
Company’s capital strength even though it is considered to be a
non-GAAP financial measure and is not part of the regulatory
capital requirements to which the Company is subject.
The Company believes these non-GAAP measures and ratios, when
taken together with the corresponding GAAP measures and ratios,
provide meaningful supplemental information regarding the Company’s
performance and capital strength. The Company’s management uses,
and believes that investors benefit from referring to, these
non-GAAP measures and ratios in assessing the Company’s operating
results and related trends and when forecasting future periods.
However, these non-GAAP measures and ratios should be considered in
addition to, and not as a substitute for or preferable to, ratios
prepared in accordance with GAAP. In the attached tables, the
Company has provided a reconciliation of, where applicable, the
most comparable GAAP financial measures and ratios to the non-GAAP
financial measures and ratios, or a reconciliation of the non-GAAP
calculation of the financial measures for the periods
indicated.
Conference Call and Webcast Information
The Company will host a conference call and webcast at 10:00
a.m. Central Time on Tuesday, April 23, 2024. During the call,
management will review the first quarter 2024 results and related
matters. This press release as well as a related slide presentation
will be accessible on the Company’s website at
www.enterprisebank.com under “Investor Relations” prior to the
scheduled broadcast of the conference call. The call can be
accessed via this same website page, or via telephone at
1-800-715-9871. We encourage participants to pre-register for the
conference call using the following link:
https://bit.ly/EFSC1Q2024EarningsCallRegistration. Callers who
pre-register will be given a conference passcode and unique PIN to
gain immediate access to the call and bypass the live operator.
Participants may pre-register at any time, including up to and
after the call start time. A recorded replay of the conference call
will be available on the website after the call’s completion. The
replay will be available for at least two weeks following the
conference call.
About Enterprise Financial Services Corp
Enterprise Financial Services Corp (Nasdaq: EFSC), with
approximately $14.6 billion in assets, is a financial holding
company headquartered in Clayton, Missouri. Enterprise Bank &
Trust, a Missouri state-chartered trust company with banking powers
and a wholly-owned subsidiary of EFSC, operates branch offices in
Arizona, California, Florida, Kansas, Missouri, Nevada, and New
Mexico, and SBA loan and deposit production offices throughout the
country. Enterprise Bank & Trust offers a range of business and
personal banking services and wealth management services.
Enterprise Trust, a division of Enterprise Bank & Trust,
provides financial planning, estate planning, investment management
and trust services to businesses, individuals, institutions,
retirement plans and non-profit organizations. Additional
information is available at www.enterprisebank.com.
Enterprise Financial Services Corp’s common stock is traded on
the Nasdaq Stock Market under the symbol “EFSC.” Please visit our
website at www.enterprisebank.com to see our regularly posted
material information.
Forward-looking Statements
Readers should note that, in addition to the historical
information contained herein, this press release contains
“forward-looking statements” within the meaning of, and intended to
be covered by, the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
based on management’s current expectations and beliefs concerning
future developments and their potential effects on the Company
including, without limitation, plans, strategies and goals, and
statements about the Company’s expectations regarding revenue and
asset growth, financial performance and profitability, loan and
deposit growth, liquidity, yields and returns, loan diversification
and credit management, shareholder value creation and the impact of
acquisitions.
Forward-looking statements are typically identified by words
such as “believe,” “expect,” “anticipate,” “intend,” “outlook,”
“estimate,” “forecast,” “project,” “pro forma”, “pipeline” and
other similar words and expressions. Forward-looking statements are
subject to numerous assumptions, risks and uncertainties, which
change over time. Forward-looking statements speak only as of the
date they are made. Because forward-looking statements are subject
to assumptions and uncertainties, actual results or future events
could differ, possibly materially, from those anticipated in the
forward-looking statements and future results could differ
materially from historical performance. They are neither statements
of historical fact nor guarantees or assurances of future
performance. While there is no assurance that any list of risks and
uncertainties or risk factors is complete, important factors that
could cause actual results to differ materially from those in the
forward-looking statements include the following, without
limitation: the Company’s ability to efficiently integrate
acquisitions into its operations, retain the customers of these
businesses and grow the acquired operations, as well as credit
risk, changes in the appraised valuation of real estate securing
impaired loans, outcomes of litigation and other contingencies,
exposure to general and local economic and market conditions, high
unemployment rates, higher inflation and its impacts (including
U.S. federal government measures to address higher inflation), U.S.
fiscal debt, budget and tax matters, and any slowdown in global
economic growth, risks associated with rapid increases or decreases
in prevailing interest rates, our ability to attract and retain
deposits and access to other sources of liquidity, consolidation in
the banking industry, competition from banks and other financial
institutions, the Company’s ability to attract and retain
relationship officers and other key personnel, burdens imposed by
federal and state regulation, changes in legislative or regulatory
requirements, as well as current, pending or future legislation or
regulation that could have a negative effect on our revenue and
businesses, including rules and regulations relating to bank
products and financial services, changes in accounting policies and
practices or accounting standards, changes in the method of
determining LIBOR and the phase out of LIBOR, natural disasters,
terrorist activities, war and geopolitical matters (including the
war in Israel and potential for a broader regional conflict and the
war in Ukraine and the imposition of additional sanctions and
export controls in connection therewith), or pandemics, and their
effects on economic and business environments in which we operate,
including the related disruption to the financial market and other
economic activity, and those factors and risks referenced from time
to time in the Company’s filings with the Securities and Exchange
Commission (the “SEC”), including in the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2023, and the
Company’s other filings with the SEC. The Company cautions that the
preceding list is not exhaustive of all possible risk factors and
other factors could also adversely affect the Company’s
results.
For any forward-looking statements made in this press release or
in any documents, EFSC claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.
Readers are cautioned not to place undue reliance on any
forward-looking statements. Except to the extent required by
applicable law or regulation, EFSC disclaims any obligation to
revise or publicly release any revision or update to any of the
forward-looking statements included herein to reflect events or
circumstances that occur after the date on which such statements
were made.
ENTERPRISE FINANCIAL SERVICES
CORP
CONSOLIDATED FINANCIAL SUMMARY
(unaudited)
Quarter ended
($ in thousands, except per share
data)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
EARNINGS SUMMARY
Net interest income
$
137,728
$
140,732
$
141,639
$
140,692
$
139,529
Provision for credit losses
5,756
18,053
8,030
6,339
4,183
Noninterest income
12,158
25,452
12,085
14,290
16,898
Noninterest expense
93,501
92,603
88,644
85,956
80,983
Income before income tax expense
50,629
55,528
57,050
62,687
71,261
Income tax expense
10,228
10,999
12,385
13,560
15,523
Net income
40,401
44,529
44,665
49,127
55,738
Preferred stock dividends
938
937
938
937
938
Net income available to common
shareholders
$
39,463
$
43,592
$
43,727
$
48,190
$
54,800
Diluted earnings per common share
$
1.05
$
1.16
$
1.17
$
1.29
$
1.46
Adjusted diluted earnings per common
share1
$
1.07
$
1.21
$
1.17
$
1.29
$
1.46
Return on average assets
1.12
%
1.23
%
1.26
%
1.44
%
1.72
%
Adjusted return on average assets1
1.14
%
1.28
%
1.26
%
1.44
%
1.72
%
Return on average common equity1
9.52
%
10.94
%
11.00
%
12.48
%
14.85
%
Adjusted return on average common
equity1
9.70
%
11.40
%
11.00
%
12.48
%
14.85
%
ROATCE1
12.31
%
14.38
%
14.49
%
16.53
%
19.93
%
Adjusted ROATCE1
12.53
%
14.98
%
14.49
%
16.53
%
19.93
%
Net interest margin (tax equivalent)
4.13
%
4.23
%
4.33
%
4.49
%
4.71
%
Efficiency ratio
62.38
%
55.72
%
57.66
%
55.46
%
51.77
%
Core efficiency ratio1
60.21
%
53.06
%
56.18
%
54.04
%
50.47
%
Assets
$
14,613,338
$
14,518,590
$
14,025,042
$
13,871,154
$
13,325,982
Average assets
$
14,556,119
$
14,332,804
$
14,068,860
$
13,671,985
$
13,131,195
Period end common shares outstanding
37,515
37,416
37,385
37,359
37,311
Dividends per common share
$
0.25
$
0.25
$
0.25
$
0.25
$
0.25
Tangible book value per common share1
$
34.21
$
33.85
$
31.06
$
31.23
$
30.55
Tangible common equity to tangible
assets1
9.01
%
8.96
%
8.51
%
8.65
%
8.81
%
Total risk-based capital to risk-weighted
assets2
14.3
%
14.2
%
14.1
%
14.1
%
14.3
%
1Refer to Reconciliations of Non-GAAP
Financial Measures tables for a reconciliation of these measures to
GAAP.
2Capital ratios for the current quarter
are preliminary and subject to, among other things, completion and
filing of the Company’s regulatory reports and ongoing regulatory
review.
ENTERPRISE FINANCIAL SERVICES
CORP
CONSOLIDATED FINANCIAL SUMMARY
(unaudited) (continued)
Quarter ended
($ in thousands, except per share
data)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
INCOME STATEMENTS
NET INTEREST INCOME
Interest income
$
207,723
$
207,083
$
200,906
$
187,897
$
169,033
Interest expense
69,995
66,351
59,267
47,205
29,504
Net interest income
137,728
140,732
141,639
140,692
139,529
Provision for credit losses
5,756
18,053
8,030
6,339
4,183
Net interest income after provision for
credit losses
131,972
122,679
133,609
134,353
135,346
NONINTEREST INCOME
Deposit service charges
4,423
4,334
4,187
3,910
4,128
Wealth management revenue
2,544
2,428
2,614
2,472
2,516
Card services revenue
2,412
2,666
2,560
2,464
2,338
Tax credit income (loss)
(2,190
)
9,688
(2,673
)
368
1,813
Other income
4,969
6,336
5,397
5,076
6,103
Total noninterest income
12,158
25,452
12,085
14,290
16,898
NONINTEREST EXPENSE
Employee compensation and benefits
45,262
39,651
40,771
41,641
42,503
Deposit costs
20,277
21,606
20,987
16,980
12,720
Occupancy
4,326
4,313
4,198
3,954
4,061
FDIC special assessment
625
2,412
—
—
—
Core conversion expense
350
—
—
—
—
Other expense
22,661
24,621
22,688
23,381
21,699
Total noninterest expense
93,501
92,603
88,644
85,956
80,983
Income before income tax expense
50,629
55,528
57,050
62,687
71,261
Income tax expense
10,228
10,999
12,385
13,560
15,523
Net income
$
40,401
$
44,529
$
44,665
$
49,127
$
55,738
Preferred stock dividends
938
937
938
937
938
Net income available to common
shareholders
$
39,463
$
43,592
$
43,727
$
48,190
$
54,800
Basic earnings per common share
$
1.05
$
1.16
$
1.17
$
1.29
$
1.47
Diluted earnings per common share
$
1.05
$
1.16
$
1.17
$
1.29
$
1.46
ENTERPRISE FINANCIAL SERVICES
CORP
CONSOLIDATED FINANCIAL SUMMARY
(unaudited) (continued)
At
($ in thousands)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
BALANCE SHEET
ASSETS
Cash and due from banks
$
157,697
$
193,275
$
190,806
$
202,702
$
210,813
Interest-earning deposits
215,951
243,610
184,245
125,328
81,241
Debt and equity investments
2,443,977
2,434,902
2,279,578
2,340,821
2,338,746
Loans held for sale
610
359
212
551
261
Loans
11,028,492
10,884,118
10,616,820
10,512,623
10,011,918
Allowance for credit losses
(135,498
)
(134,771
)
(142,133
)
(141,319
)
(138,295
)
Total loans, net
10,892,994
10,749,347
10,474,687
10,371,304
9,873,623
Fixed assets, net
44,382
42,681
41,268
41,988
42,340
Goodwill
365,164
365,164
365,164
365,164
365,164
Intangible assets, net
11,271
12,318
13,425
14,544
15,680
Other assets
481,292
476,934
475,657
408,752
398,114
Total assets
$
14,613,338
$
14,518,590
$
14,025,042
$
13,871,154
$
13,325,982
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits
$
3,805,334
$
3,958,743
$
3,852,486
$
3,880,561
$
4,192,523
Interest-bearing deposits
8,448,367
8,217,628
8,057,421
7,739,299
6,962,113
Total deposits
12,253,701
12,176,371
11,909,907
11,619,860
11,154,636
Subordinated debentures and notes
156,124
155,984
155,844
155,706
155,569
FHLB advances
125,000
—
—
150,000
100,000
Other borrowings
195,246
297,829
182,372
199,390
213,489
Other liabilities
151,542
172,338
165,039
127,965
109,468
Total liabilities
12,881,613
12,802,522
12,413,162
12,252,921
11,733,162
Shareholders’ equity:
Preferred stock
71,988
71,988
71,988
71,988
71,988
Common stock
375
374
374
374
373
Additional paid-in capital
995,969
995,208
992,044
988,355
984,281
Retained earnings
778,784
749,513
715,303
680,981
642,153
Accumulated other comprehensive loss
(115,391
)
(101,015
)
(167,829
)
(123,465
)
(105,975
)
Total shareholders’ equity
1,731,725
1,716,068
1,611,880
1,618,233
1,592,820
Total liabilities and
shareholders’ equity
$
14,613,338
$
14,518,590
$
14,025,042
$
13,871,154
$
13,325,982
ENTERPRISE FINANCIAL SERVICES
CORP
CONSOLIDATED FINANCIAL SUMMARY
(unaudited) (continued)
At or for the quarter ended
($ in thousands)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
LOAN PORTFOLIO
Commercial and industrial
$
4,766,310
$
4,672,559
$
4,448,535
$
4,360,862
$
4,032,189
Commercial real estate
4,804,803
4,803,571
4,794,355
4,802,293
4,699,302
Construction real estate
820,416
760,425
723,796
671,573
663,264
Residential real estate
367,218
372,188
376,120
368,867
364,059
Other
269,745
275,375
274,014
309,028
253,104
Total loans
$
11,028,492
$
10,884,118
$
10,616,820
$
10,512,623
$
10,011,918
DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts
$
3,805,334
$
3,958,743
$
3,852,486
$
3,880,561
$
4,192,523
Interest-bearing demand accounts
2,956,282
2,950,259
2,749,598
2,629,339
2,395,901
Money market and savings accounts
4,006,702
3,994,455
3,837,145
3,577,856
3,672,539
Brokered certificates of deposit
659,005
482,759
695,551
893,808
369,505
Other certificates of deposit
826,378
790,155
775,127
638,296
524,168
Total deposits
$
12,253,701
$
12,176,371
$
11,909,907
$
11,619,860
$
11,154,636
AVERAGE BALANCES
Loans
$
10,927,932
$
10,685,961
$
10,521,966
$
10,284,873
$
9,795,045
Securities
2,400,571
2,276,915
2,302,850
2,297,995
2,288,451
Interest-earning assets
13,596,571
13,383,638
13,160,587
12,756,653
12,189,750
Assets
14,556,119
14,332,804
14,068,860
13,671,985
13,131,195
Deposits
12,180,703
12,163,346
11,922,534
11,387,813
10,913,489
Shareholders’ equity
1,738,698
1,652,882
1,648,605
1,621,337
1,568,451
Tangible common equity1
1,289,776
1,202,872
1,197,486
1,169,091
1,115,052
YIELDS (tax equivalent)
Loans
6.87
%
6.87
%
6.80
%
6.64
%
6.33
%
Securities
3.27
3.20
3.11
3.06
3.03
Interest-earning assets
6.20
6.20
6.12
5.97
5.69
Interest-bearing deposits
3.14
3.03
2.77
2.26
1.56
Deposits
2.13
2.03
1.84
1.46
0.92
Subordinated debentures and notes
6.40
6.30
6.28
6.27
6.28
FHLB advances and other borrowed funds
3.80
3.06
2.76
3.45
2.60
Interest-bearing liabilities
3.22
3.09
2.84
2.40
1.72
Net interest margin
4.13
4.23
4.33
4.49
4.71
1Refer to Reconciliations of Non-GAAP
Financial Measures tables for a reconciliation of these measures to
GAAP.
ENTERPRISE FINANCIAL SERVICES
CORP
CONSOLIDATED FINANCIAL SUMMARY
(unaudited) (continued)
Quarter ended
(in thousands, except per share data)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
ASSET QUALITY
Net charge-offs (recoveries)
$
5,864
$
28,479
$
6,856
$
2,973
$
(264
)
Nonperforming loans
35,642
43,728
48,932
16,112
11,972
Classified assets
185,150
185,389
184,393
108,065
110,384
Nonperforming loans to total loans
0.32
%
0.40
%
0.46
%
0.15
%
0.12
%
Nonperforming assets to total assets
0.30
%
0.34
%
0.40
%
0.12
%
0.09
%
Allowance for credit losses to total
loans
1.23
%
1.24
%
1.34
%
1.34
%
1.38
%
Allowance for credit losses to total
loans, excluding guaranteed loans
1.34
%
1.35
%
1.47
%
1.48
%
1.53
%
Allowance for credit losses to
nonperforming loans
380.2
%
308.2
%
290.5
%
877.1
%
1,155.2
%
Net charge-offs (recoveries) to average
loans -annualized
0.22
%
1.06
%
0.26
%
0.12
%
(0.01
)%
WEALTH MANAGEMENT
Trust assets under management
$
2,352,902
$
2,235,073
$
2,129,408
$
1,992,563
$
1,956,146
SHARE DATA
Book value per common share
$
44.24
$
43.94
$
41.19
$
41.39
$
40.76
Tangible book value per common share1
$
34.21
$
33.85
$
31.06
$
31.23
$
30.55
Market value per share
$
40.56
$
44.65
$
37.50
$
39.10
$
44.59
Period end common shares outstanding
37,515
37,416
37,385
37,359
37,311
Average basic common shares
37,490
37,421
37,405
37,347
37,305
Average diluted common shares
37,597
37,554
37,520
37,495
37,487
CAPITAL
Total risk-based capital to risk-weighted
assets2
14.3
%
14.2
%
14.1
%
14.1
%
14.3
%
Tier 1 capital to risk-weighted
assets2
12.8
%
12.7
%
12.6
%
12.5
%
12.6
%
Common equity tier 1 capital to
risk-weighted assets2
11.4
%
11.3
%
11.2
%
11.1
%
11.2
%
Tangible common equity to tangible
assets1
9.01
%
8.96
%
8.51
%
8.65
%
8.81
%
1Refer to Reconciliations of Non-GAAP
Financial Measures tables for a reconciliation of these measures to
GAAP.
2Capital ratios for the current quarter
are preliminary and subject to, among other things, completion and
filing of the Company’s regulatory reports and ongoing regulatory
review.
ENTERPRISE FINANCIAL SERVICES
CORP
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
Quarter ended
($ in thousands)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
CORE EFFICIENCY RATIO
Net interest income (GAAP)
$
137,728
$
140,732
$
141,639
$
140,692
$
139,529
Tax-equivalent adjustment
2,040
1,915
2,061
2,062
2,041
Noninterest income (GAAP)
12,158
25,452
12,085
14,290
16,898
Less gain on sale of investment
securities
—
220
—
—
381
Less gain (loss) on sale of other real
estate owned
(2
)
—
—
97
90
Core revenue (non-GAAP)
151,928
167,879
155,785
156,947
157,997
Noninterest expense (GAAP)
93,501
92,603
88,644
85,956
80,983
Less FDIC special assessment
625
2,412
—
—
—
Less core conversion expense
350
—
—
—
—
Less amortization on intangibles
1,047
1,108
1,118
1,136
1,239
Core noninterest expense (non-GAAP)
91,479
89,083
87,526
84,820
79,744
Core efficiency ratio (non-GAAP)
60.21
%
53.06
%
56.18
%
54.04
%
50.47
%
Quarter ended
(in thousands, except per share data)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
TANGIBLE COMMON EQUITY, TANGIBLE BOOK
VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Shareholders’ equity (GAAP)
$
1,731,725
$
1,716,068
$
1,611,880
$
1,618,233
$
1,592,820
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
11,271
12,318
13,425
14,544
15,680
Tangible common equity (non-GAAP)
$
1,283,302
$
1,266,598
$
1,161,303
$
1,166,537
$
1,139,988
Less net unrealized losses on HTM
securities, after tax
47,822
41,038
81,367
53,611
48,630
Tangible common equity adjusted for
unrealized losses on HTM securities (non-GAAP)
$
1,235,480
$
1,225,560
$
1,079,936
$
1,112,926
$
1,091,358
Common shares outstanding
37,515
37,416
37,385
37,359
37,311
Tangible book value per share
(non-GAAP)
$
34.21
$
33.85
$
31.06
$
31.23
$
30.55
Total assets (GAAP)
$
14,613,338
$
14,518,590
$
14,025,042
$
13,871,154
$
13,325,982
Less goodwill
365,164
365,164
365,164
365,164
365,164
Less intangible assets
11,271
12,318
13,425
14,544
15,680
Tangible assets (non-GAAP)
$
14,236,903
$
14,141,108
$
13,646,453
$
13,491,446
$
12,945,138
Tangible common equity to tangible assets
(non-GAAP)
9.01
%
8.96
%
8.51
%
8.65
%
8.81
%
Tangible common equity to tangible assets
adjusted for unrealized losses on HTM securities (non-GAAP)
8.68
%
8.67
%
7.91
%
8.25
%
8.43
%
Quarter Ended
($ in thousands)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
RETURN ON AVERAGE TANGIBLE COMMON
EQUITY (ROATCE)
Average shareholder’s equity (GAAP)
$
1,738,698
$
1,652,882
$
1,648,605
$
1,621,337
$
1,568,451
Less average preferred stock
71,988
71,988
71,988
71,988
71,988
Less average goodwill
365,164
365,164
365,164
365,164
365,164
Less average intangible assets
11,770
12,858
13,967
15,094
16,247
Average tangible common equity
(non-GAAP)
$
1,289,776
$
1,202,872
$
1,197,486
$
1,169,091
$
1,115,052
Net income available to common
shareholders (GAAP)
$
39,463
$
43,592
$
43,727
$
48,190
$
54,800
FDIC special assessment (after tax)
470
1,814
—
—
—
Core conversion expense (after tax)
263
—
—
—
—
Net income available to common
shareholders adjusted (non-GAAP)
$
40,196
$
45,406
$
43,727
$
48,190
$
54,800
Return on average common equity
(non-GAAP)
9.52
%
10.94
%
11.00
%
12.48
%
14.85
%
Adjusted return on average common equity
(non-GAAP)
9.70
%
11.40
%
11.00
%
12.48
%
14.85
%
ROATCE (non-GAAP)
12.31
%
14.38
%
14.49
%
16.53
%
19.93
%
Adjusted ROATCE (non-GAAP)
12.53
%
14.98
%
14.49
%
16.53
%
19.93
%
Quarter ended
($ in thousands)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
CALCULATION OF PRE-PROVISION NET
REVENUE (PPNR)
Net interest income
$
137,728
$
140,732
$
141,639
$
140,692
$
139,529
Noninterest income
12,158
25,452
12,085
14,290
16,898
FDIC special assessment
625
2,412
—
—
—
Core conversion expense
350
—
—
—
—
Less gain on sale of investment
securities
—
220
—
—
381
Less gain (loss) on sale of other real
estate owned
(2
)
—
—
97
90
Less noninterest expense
93,501
92,603
88,644
85,956
80,983
PPNR (non-GAAP)
$
57,362
$
75,773
$
65,080
$
68,929
$
74,973
Quarter ended
($ in thousands)
Mar 31, 2024
Dec 31, 2023
CALCULATION OF ESTIMATED INSURED
DEPOSITS
Estimated uninsured deposits per Call
Report
$
4,062,505
$
4,297,447
Collateralized/affiliate deposits
(515,439
)
(459,872
)
Accrued interest on deposits
(5,542
)
(7,291
)
Adjusted uninsured/uncollateralized
deposits
3,541,524
3,830,284
Estimated insured/collateralized
deposits
8,712,177
8,346,087
Total deposits
$
12,253,701
$
12,176,371
Quarter ended
(in thousands, except per share data)
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
RETURN ON AVERAGE ASSETS AND DILUTED
EARNINGS PER SHARE
Net income (GAAP)
$
40,401
$
44,529
$
44,665
$
49,127
$
55,738
FDIC special assessment (after tax)
470
1,814
—
—
—
Core conversion expense (after tax)
263
—
—
—
—
Net income adjusted (non-GAAP)
$
41,134
$
46,343
$
44,665
$
49,127
$
55,738
Less preferred stock dividends
938
937
938
937
938
Net income available to common
shareholders adjusted (non-GAAP)
$
40,196
$
45,406
$
43,727
$
48,190
$
54,800
Average assets
$
14,556,119
$
14,332,804
$
14,068,860
$
13,671,985
$
13,131,195
Return on average assets (GAAP)
1.12
%
1.23
%
1.26
%
1.44
%
1.72
%
Adjusted return on average assets
(non-GAAP)
1.14
%
1.28
%
1.26
%
1.44
%
1.72
%
Average diluted common shares
37,597
37,554
37,520
37,495
37,487
Adjusted diluted earnings per share
(non-GAAP)
$
1.07
$
1.21
$
1.17
$
1.29
$
1.46
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240422782765/en/
Investor Relations: Keene Turner, Senior Executive Vice
President and CFO (314) 512-7233 Media: Steve Richardson, Senior
Vice President, Corporate Communications (314) 995-5695
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