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Enterprise Financial Reports Fourth Quarter and Full Year 2021 Results

Fourth Quarter Results

  • Net income of $50.8 million, or $1.33 per diluted share
  • Completed systems integration of First Choice Bancorp (“First Choice” or “FCBP”)
  • Return on average assets (“ROAA”) of 1.52%; Pre-Provision Net Revenue (“PPNR”) ROAA1 of 1.89%
  • Redeemed $50.0 million subordinated debentures, issued $75.0 million preferred stock, and repurchased 577,478 shares of common stock

2021 Results

  • Closed the acquisition of First Choice, adding approximately $2.3 billion in assets and approximately $1.9 billion in both loans and deposits
  • Net income of $133.1 million, or $3.86 per diluted share
  • ROAA of 1.16%; PPNR ROAA1 of 1.81%
  • Repurchased 1,299,527 shares and increased annual dividend 4%

Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”) reported net income of $50.8 million for the fourth quarter 2021, an increase of $36.9 million and $21.9 million compared to the linked third quarter (“linked quarter”) and prior year quarter, respectively. Earnings per diluted share (“EPS”) were $1.33 for the fourth quarter 2021, compared to $0.38 and $1.00 for the linked and prior year quarters, respectively.

Jim Lally, EFSC’s President and Chief Executive Officer, commented, “The success we had in 2021 is a testament to the strength of our strategically diversified revenue streams. We have structured our lending and deposit niches, geographic footprints, and fee-based sources to drive growth. These efforts resulted in a record fourth quarter in terms of both revenue and earnings, as well as a return on assets of 1.52%. With our variable-rate loan portfolio and strong noninterest-bearing deposit base, we believe we are well-positioned for the future, including for possible interest rate increases. As we move into 2022, we will leverage our guiding principles and continue to focus on creating profitable growth and increased shareholder value.”

The Company closed its acquisition of First Choice on July 21, 2021. The results of operations of First Choice are included in our consolidated results from this date forward and are excluded from preceding periods. Comparisons to the prior year are also impacted by the acquisition of Seacoast Commerce Banc Holdings (“Seacoast”), which closed in the fourth quarter 2020. The acquisition of First Choice in 2021 represents the fourth acquisition the Company has completed in the last five years.

Pretax income and earnings per share were impacted by the following items:

 

Quarter ended

 

Year ended

 

Dec 31, 2021

 

Dec 31, 2021

($ in thousands, except per share data)

Pretax income

 

EPS

 

Pretax income

 

EPS

Merger-related expenses

$ (2,320)

 

$ (0.04)

 

$ (22,082)

 

$ (0.49)

FCBP CECL double count

 

 

(25,353)

 

(0.55)

Branch-closure expenses

 

 

(3,441)

 

(0.07)

Full-Year Highlights

For 2021, net income was $133.1 million, or $3.86 per diluted share, compared to $74.4 million, or $2.76 per diluted share, in 2020. PPNR1 for the current year was $207.5 million, compared to $161.5 million in 2020. In addition to organic growth, contributing to the PPNR increase in 2021 was a full year of Seacoast operations and a partial year of First Choice operations.

The Company strengthened its liquidity and capital position in the fourth quarter 2021 through the issuance of $75.0 million of noncumulative perpetual preferred stock and the redemption of $50.0 million of subordinated debentures issued in 2016 at 4.75%. In 2021, the Company returned $86.8 million to shareholders through dividends of $26.2 million, or $0.75 per share, and share repurchases of $60.6 million. In addition, the Company issued approximately 7.8 million shares of its common stock valued at $343.7 million to First Choice shareholders upon consummation of the acquisition.

Credit quality remained strong, with nonperforming assets declining to 0.23% of total assets, from 0.45% at the end of 2020. Net charge-offs were 0.14% of average loans in 2021, compared to 0.03% in 2020. The improvements in credit quality and economic forecasts resulted in the allowance for credit losses declining to 1.61% of total loans at the end of 2021, from 1.89% at the end of 2020. Excluding guaranteed portions of loans, which includes Paycheck Protection Program (“PPP”) loans, our coverage ratio was 1.84% and 2.31% at the end of 2021 and 2020, respectively. The provision for credit losses was $13.4 million in 2021, compared to $65.4 million in 2020. Acquisition-related provision expense of $25.4 million and $8.6 million in 2021 and 2020, respectively, was included in the provision for credit losses. This expense, commonly referred to as the “CECL double-count”, is recognized when a loan portfolio is acquired.

Noninterest income increased 24% in 2021, while expenses remained well-controlled with a core efficiency ratio2 of 51.61%, compared to 50.96% in 2020. The Company commenced the process in 2021 to close five branch locations in California and St. Louis. A lease and fixed asset impairment charge of $3.8 million was recognized, including $0.4 million reported in merger-related expenses. The Company expects to realize annual cost savings of approximately $2.3 million related to these closures.

1 PPNR and PPNR ROAA are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

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

Fourth Quarter Highlights

  • Earnings - Net income in the fourth quarter 2021 was $50.8 million, an increase of $36.9 million compared to the linked quarter and an increase of $21.9 million from the prior year quarter. EPS was $1.33 per diluted share for the fourth quarter 2021, compared to $0.38 and $1.00 per diluted share for the linked and prior year quarters, respectively. Merger and branch closure expenses totaled $2.3 million, $18.1 million, and $2.6 million in the current, linked and prior year quarters, respectively.
  • Pre-provision net revenue - PPNR1 of $63.3 million in the fourth quarter 2021 increased $7.2 million and $15.8 million from the linked and prior year quarters, respectively.
  • Net interest income and net interest margin (“NIM”) - Net interest income of $102.1 million for the fourth quarter 2021 increased $4.8 million and $24.6 million from the linked and prior year quarters, respectively. NIM was 3.32% for the fourth quarter 2021, compared to 3.40% and 3.66% for the linked and prior year quarters, respectively.
  • Noninterest income - Noninterest income of $22.6 million for the fourth quarter 2021 increased $5.0 million and $4.1 million from the linked and prior year quarters, respectively.
  • Loans - Total loans declined $98.9 million from the linked quarter to $9.0 billion as of December 31, 2021, primarily due to a $167.0 million decline in PPP loans. Average loans totaled $9.0 billion for the quarter ended December 31, 2021 compared to $8.7 billion and $6.8 billion for the linked and prior year quarters, respectively.

 

Quarter ended

($ in thousands, except per share data)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

PPP loans outstanding, net of deferred fees

$

271,958

 

 

$

438,959

 

 

$

396,660

 

 

$

737,660

 

 

$

698,645

 

Average PPP loans outstanding, net

 

365,295

 

 

 

489,104

 

 

 

664,375

 

 

 

692,161

 

 

 

806,697

 

PPP average loan size

 

218

 

 

 

210

 

 

 

171

 

 

 

220

 

 

 

187

 

PPP interest and fee income

 

4,864

 

 

 

6,048

 

 

 

7,940

 

 

 

8,475

 

 

 

10,261

 

PPP deferred fees

 

4,215

 

 

 

7,428

 

 

 

12,243

 

 

 

16,676

 

 

 

11,304

 

PPP average yield

 

5.28

%

 

 

4.91

%

 

 

4.79

%

 

 

4.97

%

 

 

5.06

%

 

Quarter ended

 

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

Financial Metrics:

As

Reported

 

Excluding

PPP*

 

As

Reported

 

Excluding

PPP*

 

As

Reported

 

Excluding

PPP*

 

As

Reported

 

Excluding

PPP*

 

As

Reported

 

Excluding

PPP*

EPS

$

1.33

 

 

$

1.23

 

 

$

0.38

 

 

$

0.25

 

 

$

1.23

 

 

$

1.04

 

 

$

0.96

 

 

$

0.75

 

 

$

1.00

 

 

$

0.73

 

ROAA

 

1.52

%

 

 

1.45

%

 

 

0.45

%

 

 

0.31

%

 

 

1.50

%

 

 

1.35

%

 

 

1.22

%

 

 

1.03

%

 

 

1.26

%

 

 

1.01

%

PPNR ROAA*

 

1.89

%

 

 

1.80

%

 

 

1.81

%

 

 

1.68

%

 

 

1.85

%

 

 

1.65

%

 

 

1.66

%

 

 

1.41

%

 

 

2.07

%

 

 

1.78

%

Tangible common equity/tangible assets*

 

8.13

%

 

 

8.31

%

 

 

8.40

%

 

 

8.71

%

 

 

8.32

%

 

 

8.66

%

 

 

8.18

%

 

 

8.84

%

 

 

8.40

%

 

 

9.07

%

Leverage ratio

 

9.7

%

 

 

10.0

%

 

 

9.7

%

 

 

10.2

%

 

 

9.4

%

 

 

10.0

%

 

 

9.5

%

 

 

10.2

%

 

 

10.0

%

 

 

11.0

%

NIM

 

3.32

%

 

 

3.26

%

 

 

3.40

%

 

 

3.33

%

 

 

3.46

%

 

 

3.36

%

 

 

3.50

%

 

 

3.39

%

 

 

3.66

%

 

 

3.52

%

Allowance for credit losses/loans

 

1.61

%

 

 

1.84

%

 

 

1.67

%

 

 

1.94

%

 

 

1.77

%

 

 

2.09

%

 

 

1.80

%

 

 

2.22

%

 

 

1.89

%

 

 

2.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables. Calculations not adjusted for increase in average deposits or increase in deposit expense, as applicable.

  • Asset quality - The allowance for credit losses on loans to total loans was 1.61% at December 31, 2021, compared to 1.67% at September 30, 2021, and 1.89% at December 31, 2020. Nonperforming assets to total assets was 0.23% at December 31, 2021 compared to 0.35% and 0.45% at September 30, 2021 and December 31, 2020, respectively.
  • Deposits - Total deposits increased $516.0 million from the linked quarter to $11.3 billion as of December 31, 2021. Average deposits totaled $11.2 billion for the quarter ended December 31, 2021 compared to $10.3 billion and $7.3 billion for the linked and prior year quarters, respectively. Noninterest deposit accounts represented 40.4% of total deposits at December 31, 2021, and the loan to deposit ratio was 79.5% at that date.
  • Capital - Total shareholders’ equity was $1.5 billion and the tangible common equity to tangible assets ratio3 was 8.1% at December 31, 2021, compared to $1.4 billion and 8.4% at September 30, 2021. Shareholder’s equity increased in the fourth quarter 2021 from the issuance of $72.0 million of preferred stock, net of issuance costs, and net income of $50.8 million. These increases were offset by share repurchases of $27.5 million, dividends of $7.6 million, and a $1.1 million decline in accumulated comprehensive income. Enterprise Bank & Trust’s estimated regulatory capital ratios remain “well-capitalized,” with a common equity tier 1 ratio of 12.5% and a total risk-based capital ratio of 13.5% as of December 31, 2021. In addition, the consolidated Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.3% and 14.7%, respectively, at December 31, 2021.

The Company has 700,473 shares available for repurchase under the existing common stock repurchase authorization. The Company repurchased 577,478 shares totaling $27.5 million in the fourth quarter 2021 for an average price of $47.65. Total shares repurchased year-to-date total 1,299,527 at an average price of $46.62.

The Company’s Board of Directors declared a quarterly common stock dividend of $0.21 per common share, payable on March 31, 2022 to shareholders of record as of March 15, 2022. The Board of Directors also declared a cash dividend of $16.38888889 per share of Series A Preferred Stock (or $0.40972222 per depositary share) representing a 5% per annum rate for the period commencing (and including) November 17, 2021 to (but excluding) March 15, 2022. The dividend will be payable on March 15, 2022 to shareholders of record on February 28, 2022.

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

Net Interest Income

Average Balance Sheet

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

 

Quarter ended

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

($ 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans*

$

9,030,982

 

$

98,412

 

4.32

%

 

$

8,666,353

 

$

94,465

 

4.32

%

 

$

6,780,702

 

$

76,044

 

4.46

%

Debt and equity investments*

 

1,753,159

 

 

10,146

 

2.30

 

 

 

1,594,938

 

 

9,583

 

2.38

 

 

 

1,395,806

 

 

8,986

 

2.56

 

Short-term investments

 

1,589,008

 

 

590

 

0.15

 

 

 

1,251,988

 

 

480

 

0.15

 

 

 

347,629

 

 

120

 

0.14

 

Total earning assets

 

12,373,149

 

 

109,148

 

3.50

 

 

 

11,513,279

 

 

104,528

 

3.60

 

 

 

8,524,137

 

 

85,150

 

3.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

894,044

 

 

 

 

 

 

821,279

 

 

 

 

 

 

617,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

13,267,193

 

 

 

 

 

$

12,334,558

 

 

 

 

 

$

9,141,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

$

2,383,059

 

$

491

 

0.08

%

 

$

2,228,466

 

$

459

 

0.08

%

 

$

1,584,369

 

$

265

 

0.07

%

Money market accounts

 

2,853,655

 

 

1,412

 

0.20

 

 

 

2,675,405

 

 

1,294

 

0.19

 

 

 

2,175,111

 

 

1,016

 

0.19

 

Savings

 

776,695

 

 

64

 

0.03

 

 

 

747,927

 

 

61

 

0.03

 

 

 

620,248

 

 

46

 

0.03

 

Certificates of deposit

 

616,347

 

 

831

 

0.53

 

 

 

604,594

 

 

927

 

0.61

 

 

 

567,456

 

 

1,739

 

1.22

 

Total interest-bearing deposits

 

6,629,756

 

 

2,798

 

0.17

 

 

 

6,256,392

 

 

2,741

 

0.17

 

 

 

4,947,184

 

 

3,066

 

0.25

 

Subordinated debentures

 

171,453

 

 

2,439

 

5.64

 

 

 

204,011

 

 

2,855

 

5.55

 

 

 

203,564

 

 

2,824

 

5.52

 

FHLB advances

 

50,000

 

 

199

 

1.58

 

 

 

89,457

 

 

211

 

0.94

 

 

 

244,730

 

 

603

 

0.98

 

Securities sold under agreements to repurchase

 

246,525

 

 

60

 

0.10

 

 

 

216,403

 

 

58

 

0.11

 

 

 

231,836

 

 

64

 

0.11

 

Other borrowings

 

24,270

 

 

85

 

1.39

 

 

 

25,699

 

 

90

 

1.39

 

 

 

30,095

 

 

110

 

1.45

 

Total interest-bearing liabilities

 

7,122,004

 

 

5,581

 

0.31

 

 

 

6,791,962

 

 

5,955

 

0.35

 

 

 

5,657,409

 

 

6,667

 

0.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

4,537,247

 

 

 

 

 

 

4,040,761

 

 

 

 

 

 

2,363,890

 

 

 

 

Other liabilities

 

112,546

 

 

 

 

 

 

107,739

 

 

 

 

 

 

127,843

 

 

 

 

Total liabilities

 

11,771,797

 

 

 

 

 

 

10,940,462

 

 

 

 

 

 

8,149,142

 

 

 

 

Shareholders' equity

 

1,495,396

 

 

 

 

 

 

1,394,096

 

 

 

 

 

 

992,017

 

 

 

 

Total liabilities and shareholders' equity

$

13,267,193

 

 

 

 

 

$

12,334,558

 

 

 

 

 

$

9,141,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net interest income

 

 

$

103,567

 

 

 

 

 

$

98,573

 

 

 

 

 

$

78,483

 

 

Net interest margin

 

 

 

 

3.32

%

 

 

 

 

 

3.40

%

 

 

 

 

 

3.66

%

* Non-taxable income is presented on a tax-equivalent basis using a 25.2% and 24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustments were $1.5 million for the three months ended December 31, 2021, $1.3 million for the three months ended September 30, 2021, and $1.0 million for the three months ended December 31, 2020.

Net interest income for the fourth quarter 2021 increased $4.8 million to $102.1 million from $97.3 million in the linked quarter, and increased $24.6 million from the prior year period. NIM, on a tax equivalent basis, was 3.32% for the fourth quarter 2021, compared to 3.40% in the linked quarter, and 3.66% in the fourth quarter of 2020. The increase in net interest income from the linked quarter was primarily due to a full quarter of income on acquired First Choice assets, higher income from an expanded investment portfolio and lower interest expense from the redemption of the $50.0 million of subordinated debentures. PPP fee income of $4.9 million, $6.0 million and $10.3 million was included in net interest income for the current, linked and prior year quarters, respectively. The level of PPP income has declined each quarter in 2021 as the portfolio winds down.

NIM decreased 8 basis points from the linked quarter to 3.32% during the current quarter primarily due to a 10 basis point decrease in earning asset yields, offset by a four basis point decrease in the cost of interest-bearing liabilities. Average short-term investments, comprised primarily of interest-bearing cash accounts, increased $337.0 million to $1.6 billion for the fourth quarter 2021 and was the primary reason for the decline in earning asset yields. PPP income continued to benefit net interest income and margin in the fourth quarter 2021, but at a reduced level from both the linked and prior year quarters.

The Company has an asset-sensitive balance sheet, with 63% of loans tied to a variable rate index and 40.4% of the deposit portfolio in noninterest-bearing demand accounts. Approximately $3.2 billion of loans at December 31, 2021 had an interest rate floor and 95% of those loans were at the floor rate. The Company has hedged the majority of its variable rate debt and should not recognize a significant increase in interest expense on these borrowings if interest rates increase.

Loans

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

 

Quarter ended

 

 

 

September 30, 2021

 

 

 

 

 

 

($ in thousands)

December 31,

2021

 

FCBPa

 

Legacy

EFSCa

 

Consolidated

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020b

C&I

$

1,538,155

 

 

$

242,740

 

$

1,215,338

 

$

1,458,078

 

 

$

1,116,229

 

 

$

1,048,839

 

 

$

1,103,060

 

CRE investor owned

 

1,955,087

 

 

 

553,490

 

 

1,381,794

 

 

1,935,284

 

 

 

1,467,243

 

 

 

1,491,244

 

 

 

1,420,905

 

CRE owner occupied

 

1,112,463

 

 

 

301,929

 

 

861,307

 

 

1,163,236

 

 

 

789,220

 

 

 

805,581

 

 

 

825,846

 

SBA loans*

 

1,241,449

 

 

 

160,833

 

 

1,038,925

 

 

1,199,758

 

 

 

1,010,727

 

 

 

941,075

 

 

 

895,930

 

Sponsor finance*

 

508,469

 

 

 

 

 

454,431

 

 

454,431

 

 

 

463,744

 

 

 

394,207

 

 

 

396,487

 

Life insurance premium financing*

 

593,562

 

 

 

 

 

572,492

 

 

572,492

 

 

 

564,366

 

 

 

543,084

 

 

 

534,092

 

Tax credits*

 

486,881

 

 

 

 

 

462,168

 

 

462,168

 

 

 

423,258

 

 

 

387,968

 

 

 

382,602

 

SBA PPP loans

 

271,958

 

 

 

206,284

 

 

232,675

 

 

438,959

 

 

 

396,660

 

 

 

737,660

 

 

 

698,645

 

Residential real estate

 

430,985

 

 

 

226,321

 

 

293,538

 

 

519,859

 

 

 

302,007

 

 

 

299,517

 

 

 

318,091

 

Construction and land development

 

625,526

 

 

 

219,600

 

 

432,627

 

 

652,227

 

 

 

467,586

 

 

 

438,303

 

 

 

474,399

 

Other

 

253,107

 

 

 

32,547

 

 

227,544

 

 

260,091

 

 

 

225,227

 

 

 

201,303

 

 

 

174,878

 

Total Loans

$

9,017,642

 

 

$

1,943,744

 

$

7,172,839

 

$

9,116,583

 

 

$

7,226,267

 

 

$

7,288,781

 

 

$

7,224,935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loan yield

 

4.32

%

 

 

 

 

 

 

4.32

%

 

 

4.35

%

 

 

4.35

%

 

 

4.46

%

Variable interest rate loans to total loans

 

63

%

 

 

 

 

 

 

63

%

 

 

57

%

 

 

56

%

 

 

57

%

 

Certain prior period amounts have been reclassified among the categories to conform to the current period presentation.

*Specialty loan category

a Amounts reported are as of September 30, 2021 and are separately shown attributable to the FCBP loan portfolio acquired on July 21, 2021, and the Company’s pre-FCBP acquisition loan portfolio.

b $1.2 billion is attributable to the Seacoast loan portfolio acquired on November 12, 2020.

Loans totaled $9.0 billion at December 31, 2021, decreasing $98.9 million compared to the linked quarter, primarily due to a decline in PPP loans of $167.0 million. Excluding PPP loans, loans increased $68.1 million, or 3.1% annualized, from the linked quarter. A high level of paydowns muted loan originations in the fourth quarter. Year-over-year, loans grew $1.8 billion from $7.2 billion as of December 31, 2020 due to the First Choice acquisition, partially offset by a $426.7 million decline in PPP loans. Excluding PPP loans and the impact of our First Choice acquisition, loans increased $553.6 million, or 8.5%, from the prior year quarter. For the quarter ended December 31, 2021 average line draw utilization was 39.9% compared to 38.2% and 38.1% in 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)

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

Nonperforming loans*

$

28,024

 

 

$

41,554

 

 

$

42,252

 

 

$

36,659

 

 

$

38,507

 

Other real estate

 

3,493

 

 

 

3,493

 

 

 

3,612

 

 

 

6,164

 

 

 

5,330

 

Nonperforming assets*

$

31,517

 

 

$

45,047

 

 

$

45,864

 

 

$

42,823

 

 

$

43,837

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

0.31

%

 

 

0.46

%

 

 

0.58

%

 

 

0.50

%

 

 

0.53

%

Nonperforming assets to total assets

 

0.23

%

 

 

0.35

%

 

 

0.44

%

 

 

0.42

%

 

 

0.45

%

Allowance for credit losses to total loans

 

1.61

%

 

 

1.67

%

 

 

1.77

%

 

 

1.80

%

 

 

1.89

%

Net charge-offs (recoveries)

$

3,263

 

 

$

1,850

 

 

$

869

 

 

$

5,647

 

 

$

(612

)

*Excludes government guaranteed balances.

Nonperforming assets decreased $13.5 million to $31.5 million at December 31, 2021 from $45.0 million at September 30, 2021. The decrease was primarily from principal payments and a $3.5 million charge-off on an agricultural loan that went on nonaccrual in a prior period.

The Company recorded a provision benefit of $3.7 million for the fourth quarter 2021, compared to a provision for credit losses of $19.7 million for the linked quarter and $9.5 million for the prior year quarter. The provision for credit losses for the linked and prior year quarters included the establishment of a reserve for the First Choice and Seacoast acquired loan portfolios of $25.4 million and $8.6 million, respectively.

Deposits

The following table presents total deposits for the most recent five quarters.

 

Quarter ended

 

 

 

September 30, 2021

 

 

 

 

 

 

($ in thousands)

December 31,

2021

 

FCBPa

 

Legacy

EFSCa

 

Consolidated

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020b

Noninterest-bearing accounts

$

4,578,436

 

 

$

1,041,622

 

 

$

3,334,091

 

 

$

4,375,713

 

 

$

3,111,581

 

 

$

2,910,216

 

 

$

2,711,828

 

Interest-bearing transaction accounts

 

2,465,884

 

 

 

317,301

 

 

 

1,936,338

 

 

 

2,253,639

 

 

 

2,013,129

 

 

 

1,990,308

 

 

 

1,768,497

 

Money market and savings accounts

 

3,691,186

 

 

 

370,179

 

 

 

3,201,073

 

 

 

3,571,252

 

 

 

3,000,460

 

 

 

3,093,569

 

 

 

2,954,969

 

Brokered certificates of deposit

 

128,970

 

 

 

78,714

 

 

 

50,209

 

 

 

128,923

 

 

 

50,209

 

 

 

50,209

 

 

 

50,209

 

Other certificates of deposit

 

479,323

 

 

 

51,832

 

 

 

446,416

 

 

 

498,248

 

 

 

464,125

 

 

 

471,142

 

 

 

499,886

 

Total deposit portfolio

$

11,343,799

 

 

$

1,859,648

 

 

$

8,968,127

 

 

$

10,827,775

 

 

$

8,639,504

 

 

$

8,515,444

 

 

$

7,985,389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits to total deposits

 

40.4

%

 

 

56.0

%

 

 

37.2

%

 

 

40.4

%

 

 

36.0

%

 

 

34.2

%

 

 

34.0

%

aAmounts reported are as of September 30, 2021 and are shown separately attributable to the FCBP deposit portfolio acquired on July 21, 2021, and the Company’s pre-FCBP acquisition deposit portfolio.

b $1.1 billion is attributable to the Seacoast deposit portfolio acquired on November 12, 2020.

Total deposits at December 31, 2021 were $11.3 billion, an increase of $0.5 billion from September 30, 2021, and an increase of $3.4 billion from December 31, 2020. The increase from the linked quarter was primarily due to specialty deposits, which increased $350.7 million. The year-over-year increase was primarily due to the First Choice acquisition and the high level of liquidity in the economy.

Core deposits, defined as total deposits excluding time deposits, were $10.7 billion at December 31, 2021, an increase of $534.9 million from the linked quarter, and an increase of $3.3 billion from the prior year period. Noninterest-bearing deposits were $4.6 billion at December 31, 2021, and represented 40% of total deposits at that date. The total cost of deposits was 0.10% for the current quarter compared to 0.11% and 0.17% for the linked and prior year quarters, respectively.

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)

December 31,

2021

 

September 30,

2021

 

Increase

(decrease)

 

December 31,

2020

 

Increase

(decrease)

Deposit service charges

$

3,962

 

$

4,520

 

$

(558

)

 

(12

)%

 

$

3,160

 

$

802

 

25

%

Wealth management revenue

 

2,687

 

 

2,573

 

 

114

 

 

4

%

 

 

2,449

 

 

238

 

10

%

Card services revenue

 

3,223

 

 

3,186

 

 

37

 

 

1

%

 

 

2,511

 

 

712

 

28

%

Tax credit income

 

4,374

 

 

3,325

 

 

1,049

 

 

32

%

 

 

4,048

 

 

326

 

8

%

Miscellaneous income

 

8,384

 

 

4,015

 

 

4,369

 

 

109

%

 

 

6,338

 

 

2,046

 

32

%

Total noninterest income

$

22,630

 

$

17,619

 

$

5,011

 

 

28

%

 

$

18,506

 

$

4,124

 

22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income for the fourth quarter 2021 was $22.6 million, an increase of $5.0 million from the linked quarter and an increase of $4.1 million from the prior year quarter. The increase from the linked quarter was primarily due to seasonally strong tax credit activity and fees earned on community development investments. Deposit service charges declined from the linked quarter primarily due to a fee waiver provided to First Choice customers during the core conversion process. Additionally, servicing income (included in miscellaneous income) declined $0.6 million from the linked quarter due to accelerated paydowns.

Noninterest Expenses

Noninterest expense was $63.7 million for the fourth quarter 2021, compared to $76.9 million for the linked quarter, and $51.1 million for the fourth quarter 2020. The decrease from the linked quarter was primarily due to a $15.8 million decrease in merger expenses and branch impairment charges. The increase from the prior year quarter is due to the acquisitions of First Choice and Seacoast, partially offset by swap termination charges of $3.2 million that were recognized in the fourth quarter 2020.

For the fourth quarter 2021, the Company’s efficiency ratio was 51.1% compared to 66.9% and 53.2% for the linked quarter and prior year quarter, respectively. The Company’s core efficiency ratio2 was 49.2% for the quarter ended December 31, 2021, compared to 51.3% for the linked quarter and 50.9% for the prior year quarter.

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

Income Taxes

The Company’s effective tax rate was 21% for the fourth quarter of 2021, compared to 24% in the linked quarter and 18% in the prior year quarter. The Company’s blended tax rate increased to 25.2% in 2021 from 24.9%, in 2020 due to its expanded geographic footprint and the related state apportionment.

Capital

The following table presents various EFSC capital ratios:

 

Quarter ended

Percent

December 31,

2021

 

September 30,

2021

 

June 30,

2021

 

March 31,

2021

 

December 31,

2020

Total risk-based capital to risk-weighted assets

14.7 %

 

14.5 %

 

14.9 %

 

15.1 %

 

14.9 %

Tier 1 capital to risk weighted assets

13.0 %

 

12.2 %

 

12.3 %

 

12.3 %

 

12.1 %

Common equity tier 1 capital to risk-weighted assets

11.3 %

 

11.2 %

 

11.1 %

 

11.0 %

 

10.9 %

Tangible common equity to tangible assets1

8.1 %

 

8.4 %

 

8.3 %

 

8.2 %

 

8.4 %

Total equity was $1.5 billion at December 31, 2021, an increase of $89.5 million from September 30, 2021. The Company issued and sold 3,000,000 depositary shares, each representing 1/40th interest in a share of 5% noncumulative, perpetual preferred stock totaling $72.0 million, net of issuance costs, in the fourth quarter 2021. The Company’s tangible common book value per share was $28.28, up 3.3% and 11.0% from the linked and prior year quarters, respectively.

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, PPNR ROAA, financial metrics adjusted for PPP impact, core efficiency ratio, and the tangible common equity ratio, 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, PPNR ROAA, financial metrics adjusted for PPP impact, core efficiency ratio, and the tangible common equity ratio, 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, 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, January 25, 2022. During the call, management will review the fourth quarter and full year of 2021 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” beginning prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-888-394-8218 (Conference ID #6577620). A recorded replay of the conference call will be available on the website two hours after the call’s completion. Visit https://bit.ly/EFSC4Q2021 and register to receive a dial-in number, passcode, and pin number. The replay will be available for approximately two weeks following the conference call.

About Enterprise Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $13.5 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, 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, yields and returns, loan diversification and credit management, shareholder value creation and the impact of the First Choice acquisition and other 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. Factors that could cause or contribute to such differences include, but are not limited to, the Company’s ability to efficiently integrate acquisitions, including the First Choice acquisition, 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 conditions, risks associated with rapid increases or decreases in prevailing interest rates, 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 regulatory requirements, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase-out of LIBOR, natural disasters, war or terrorist activities, or pandemics, including the COVID-19 pandemic, and their effects on economic and business environments in which we operate including the ongoing disruption to the financial market and other economic activity caused by the COVID-19 pandemic, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company's Annual Reports on Form 10-K for the fiscal year ended December 31, 2020, and the Company's other filings with the SEC. 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.

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

 

Year ended

($ in thousands, except per share data)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

 

Dec 31,

2021

 

Dec 31,

2020

EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

102,060

 

 

$

97,273

 

 

$

81,738

 

 

$

79,123

 

 

$

77,446

 

 

$

360,194

 

 

$

270,001

 

Provision (benefit) for credit losses

 

(3,660

)

 

 

19,668

 

 

 

(2,669

)

 

 

46

 

 

 

9,463

 

 

 

13,385

 

 

 

65,398

 

Noninterest income

 

22,630

 

 

 

17,619

 

 

 

16,204

 

 

 

11,290

 

 

 

18,506

 

 

 

67,743

 

 

 

54,503

 

Noninterest expense

 

63,694

 

 

 

76,885

 

 

 

52,456

 

 

 

52,884

 

 

 

51,050

 

 

 

245,919

 

 

 

167,159

 

Income before income tax expense

 

64,656

 

 

 

18,339

 

 

 

48,155

 

 

 

37,483

 

 

 

35,439

 

 

 

168,633

 

 

 

91,947

 

Income tax expense

 

13,845

 

 

 

4,426

 

 

 

9,750

 

 

 

7,557

 

 

 

6,508

 

 

 

35,578

 

 

 

17,563

 

Net income

$

50,811

 

 

$

13,913

 

 

$

38,405

 

 

$

29,926

 

 

$

28,931

 

 

$

133,055

 

 

$

74,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

1.33

 

 

$

0.38

 

 

$

1.23

 

 

$

0.96

 

 

$

1.00

 

 

$

3.86

 

 

$

2.76

 

Return on average assets

 

1.52

%

 

 

0.45

%

 

 

1.50

%

 

 

1.22

%

 

 

1.26

%

 

 

1.16

%

 

 

0.90

%

Return on average common equity

 

13.81

%

 

 

3.96

%

 

 

13.79

%

 

 

11.07

%

 

 

11.60

%

 

 

10.49

%

 

 

8.24

%

Return on average tangible common equity

 

18.81

%

 

 

5.37

%

 

 

18.44

%

 

 

14.92

%

 

 

15.73

%

 

 

14.18

%

 

 

11.23

%

Net interest margin (tax equivalent)

 

3.32

%

 

 

3.40

%

 

 

3.46

%

 

 

3.50

%

 

 

3.66

%

 

 

3.41

%

 

 

3.56

%

Efficiency ratio

 

51.08

%

 

 

66.92

%

 

 

53.56

%

 

 

58.49

%

 

 

53.20

%

 

 

57.47

%

 

 

51.51

%

Core efficiency ratio1

 

49.22

%

 

 

51.30

%

 

 

51.86

%

 

 

55.02

%

 

 

50.93

%

 

 

51.61

%

 

 

50.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

$

9,017,642

 

 

$

9,116,583

 

 

$

7,226,267

 

 

$

7,288,781

 

 

$

7,224,935

 

 

 

 

 

Total average loans

$

9,030,982

 

 

$

8,666,353

 

 

$

7,306,471

 

 

$

7,192,776

 

 

$

6,780,701

 

 

$

8,055,873

 

 

$

6,071,496

 

Total assets

$

13,537,358

 

 

$

12,888,016

 

 

$

10,346,993

 

 

$

10,190,699

 

 

$

9,751,571

 

 

 

 

 

Total average assets

$

13,267,193

 

 

$

12,334,558

 

 

$

10,281,344

 

 

$

9,940,052

 

 

$

9,141,159

 

 

$

11,467,310

 

 

$

8,253,913

 

Total deposits

$

11,343,799

 

 

$

10,827,775

 

 

$

8,639,504

 

 

$

8,515,444

 

 

$

7,985,389

 

 

 

 

 

Total average deposits

$

11,167,003

 

 

$

10,297,153

 

 

$

8,580,211

 

 

$

8,207,379

 

 

$

7,311,074

 

 

$

9,573,056

 

 

$

6,593,893

 

Period end common shares outstanding

 

37,820

 

 

 

38,372

 

 

 

31,185

 

 

 

31,259

 

 

 

31,210

 

 

 

 

 

Dividends per common share

$

0.20

 

 

$

0.19

 

 

$

0.18

 

 

$

0.18

 

 

$

0.18

 

 

$

0.75

 

 

$

0.72

 

Tangible book value per common share

$

28.28

 

 

$

27.38

 

 

$

26.85

 

 

$

25.92

 

 

$

25.48

 

 

 

 

 

Tangible common equity to tangible assets1

 

8.13

%

 

 

8.40

%

 

 

8.32

%

 

 

8.18

%

 

 

8.40

%

 

 

 

 

Total risk-based capital to risk-weighted assets

 

14.7

%

 

 

14.5

%

 

 

14.9

%

 

 

15.1

%

 

 

14.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Year ended

($ in thousands, except per share data)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

 

Dec 31,

2021

 

Dec 31,

2020

INCOME STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

$

107,641

 

 

$

103,228

 

$

87,401

 

 

$

84,960

 

 

$

84,113

 

$

383,230

 

$

304,779

Total interest expense

 

5,581

 

 

 

5,955

 

 

5,663

 

 

 

5,837

 

 

 

6,667

 

 

23,036

 

 

34,778

Net interest income

 

102,060

 

 

 

97,273

 

 

81,738

 

 

 

79,123

 

 

 

77,446

 

 

360,194

 

 

270,001

Provision (benefit) for credit losses

 

(3,660

)

 

 

19,668

 

 

(2,669

)

 

 

46

 

 

 

9,463

 

 

13,385

 

 

65,398

Net interest income after provision for credit losses

 

105,720

 

 

 

77,605

 

 

84,407

 

 

 

79,077

 

 

 

67,983

 

 

346,809

 

 

204,603

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

3,962

 

 

 

4,520

 

 

3,862

 

 

 

3,084

 

 

 

3,160

 

 

15,428

 

 

11,717

Wealth management revenue

 

2,687

 

 

 

2,573

 

 

2,516

 

 

 

2,483

 

 

 

2,449

 

 

10,259

 

 

9,732

Card services revenue

 

3,223

 

 

 

3,186

 

 

2,975

 

 

 

2,496

 

 

 

2,511

 

 

11,880

 

 

9,481

Tax credit income (expense)

 

4,374

 

 

 

3,325

 

 

1,370

 

 

 

(1,041

)

 

 

4,048

 

 

8,028

 

 

6,611

Other income

 

8,384

 

 

 

4,015

 

 

5,481

 

 

 

4,268

 

 

 

6,338

 

 

22,148

 

 

16,962

Total noninterest income

 

22,630

 

 

 

17,619

 

 

16,204

 

 

 

11,290

 

 

 

18,506

 

 

67,743

 

 

54,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

33,488

 

 

 

33,722

 

 

28,132

 

 

 

29,562

 

 

 

26,174

 

 

124,904

 

 

92,288

Occupancy

 

4,510

 

 

 

4,496

 

 

3,529

 

 

 

3,751

 

 

 

3,517

 

 

16,286

 

 

13,457

Branch-closure expenses

 

 

 

 

3,441

 

 

 

 

 

 

 

 

 

 

3,441

 

 

Merger-related expenses

 

2,320

 

 

 

14,671

 

 

1,949

 

 

 

3,142

 

 

 

2,611

 

 

22,082

 

 

4,174

Other

 

23,376

 

 

 

20,555

 

 

18,846

 

 

 

16,429

 

 

 

18,748

 

 

79,206

 

 

57,240

Total noninterest expenses

 

63,694

 

 

 

76,885

 

 

52,456

 

 

 

52,884

 

 

 

51,050

 

 

245,919

 

 

167,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

64,656

 

 

 

18,339

 

 

48,155

 

 

 

37,483

 

 

 

35,439

 

 

168,633

 

 

91,947

Income tax expense

 

13,845

 

 

 

4,426

 

 

9,750

 

 

 

7,557

 

 

 

6,508

 

 

35,578

 

 

17,563

Net income

$

50,811

 

 

$

13,913

 

$

38,405

 

 

$

29,926

 

 

$

28,931

 

$

133,055

 

$

74,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

1.33

 

 

$

0.38

 

$

1.23

 

 

$

0.96

 

 

$

1.00

 

$

3.86

 

$

2.76

Diluted earnings per share

$

1.33

 

 

$

0.38

 

$

1.23

 

 

$

0.96

 

 

$

1.00

 

$

3.86

 

$

2.76

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

 

 

Quarter ended

($ in thousands)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

BALANCE SHEETS

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

209,177

 

 

$

179,826

 

 

$

126,789

 

 

$

103,367

 

 

$

99,760

 

Interest-earning deposits

 

1,819,508

 

 

 

1,216,470

 

 

 

889,960

 

 

 

788,464

 

 

 

445,569

 

Debt and equity investments

 

1,855,583

 

 

 

1,717,442

 

 

 

1,585,847

 

 

 

1,463,818

 

 

 

1,448,803

 

Loans held for sale

 

6,389

 

 

 

5,068

 

 

 

5,763

 

 

 

8,531

 

 

 

13,564

 

 

 

 

 

 

 

 

 

 

 

Loans

 

9,017,642

 

 

 

9,116,583

 

 

 

7,226,267

 

 

 

7,288,781

 

 

 

7,224,935

 

Allowance for credit losses on loans

 

(145,041

)

 

 

(152,096

)

 

 

(128,185

)

 

 

(131,527

)

 

 

(136,671

)

Total loans, net

 

8,872,601

 

 

 

8,964,487

 

 

 

7,098,082

 

 

 

7,157,254

 

 

 

7,088,264

 

 

 

 

 

 

 

 

 

 

 

Fixed assets, net

 

47,915

 

 

 

48,697

 

 

 

50,972

 

 

 

52,078

 

 

 

53,169

 

Goodwill

 

365,164

 

 

 

365,415

 

 

 

260,567

 

 

 

260,567

 

 

 

260,567

 

Intangible assets, net

 

22,286

 

 

 

23,777

 

 

 

20,358

 

 

 

21,670

 

 

 

23,084

 

Other assets

 

338,735

 

 

 

366,834

 

 

 

308,655

 

 

 

334,950

 

 

 

318,791

 

Total assets

$

13,537,358

 

 

$

12,888,016

 

 

$

10,346,993

 

 

$

10,190,699

 

 

$

9,751,571

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

4,578,436

 

 

$

4,375,713

 

 

$

3,111,581

 

 

$

2,910,216

 

 

$

2,711,828

 

Interest-bearing deposits

 

6,765,363

 

 

 

6,452,062

 

 

 

5,527,923

 

 

 

5,605,228

 

 

 

5,273,561

 

Total deposits

 

11,343,799

 

 

 

10,827,775

 

 

 

8,639,504

 

 

 

8,515,444

 

 

 

7,985,389

 

Subordinated debentures

 

154,899

 

 

 

204,103

 

 

 

203,940

 

 

 

203,778

 

 

 

203,637

 

FHLB advances

 

50,000

 

 

 

50,000

 

 

 

50,000

 

 

 

50,000

 

 

 

50,000

 

Other borrowings

 

353,863

 

 

 

243,770

 

 

 

234,509

 

 

 

229,389

 

 

 

301,081

 

Other liabilities

 

105,681

 

 

 

122,733

 

 

 

100,739

 

 

 

99,591

 

 

 

132,489

 

Total liabilities

 

12,008,242

 

 

 

11,448,381

 

 

 

9,228,692

 

 

 

9,098,202

 

 

 

8,672,596

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

Preferred stock

 

71,988

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

398

 

 

 

404

 

 

 

330

 

 

 

332

 

 

 

332

 

Treasury stock

 

(73,528

)

 

 

(73,528

)

 

 

(73,528

)

 

 

(73,528

)

 

 

(73,528

)

Additional paid in capital

 

1,018,799

 

 

 

1,031,146

 

 

 

688,945

 

 

 

698,005

 

 

 

697,839

 

Retained earnings

 

492,682

 

 

 

461,711

 

 

 

474,282

 

 

 

441,511

 

 

 

417,212

 

Accumulated other comprehensive income

 

18,777

 

 

 

19,902

 

 

 

28,272

 

 

 

26,177

 

 

 

37,120

 

Total shareholders’ equity

 

1,529,116

 

 

 

1,439,635

 

 

 

1,118,301

 

 

 

1,092,497

 

 

 

1,078,975

 

Total liabilities and shareholders’ equity

$

13,537,358

 

 

$

12,888,016

 

 

$

10,346,993

 

 

$

10,190,699

 

 

$

9,751,571

 

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 interest rates earned and paid, all on a tax equivalent basis.

 

Year ended

 

December 31, 2021

 

December 31, 2020

($ in thousands)

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/ Rate

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/ Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans*

$

8,055,873

 

$

349,112

 

4.33

%

 

$

6,071,496

 

$

270,673

 

4.46

%

Debt and equity investments*

 

1,567,993

 

 

37,773

 

2.41

 

 

 

1,366,601

 

 

36,675

 

2.68

 

Short-term investments

 

1,084,853

 

 

1,496

 

0.14

 

 

 

228,760

 

 

620

 

0.27

 

Total earning assets

 

10,708,719

 

 

388,381

 

3.63

 

 

 

7,666,857

 

 

307,968

 

4.02

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

758,591

 

 

 

 

 

 

587,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

11,467,310

 

 

 

 

 

$

8,253,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

$

2,122,752

 

$

1,614

 

0.08

%

 

$

1,494,364

 

$

2,101

 

0.14

%

Money market accounts

 

2,557,836

 

 

4,669

 

0.18

 

 

 

1,977,826

 

 

7,754

 

0.39

 

Savings

 

724,768

 

 

225

 

0.03

 

 

 

589,832

 

 

279

 

0.05

 

Certificates of deposit

 

570,496

 

 

4,160

 

0.73

 

 

 

676,889

 

 

10,915

 

1.61

 

Total interest-bearing deposits

 

5,975,852

 

 

10,668

 

0.18

 

 

 

4,738,911

 

 

21,049

 

0.44

 

Subordinated debentures

 

195,686

 

 

10,960

 

5.60

 

 

 

179,534

 

 

9,885

 

5.51

 

FHLB advances

 

59,945

 

 

803

 

1.34

 

 

 

241,635

 

 

2,673

 

1.11

 

Securities sold under agreements to repurchase

 

225,895

 

 

235

 

0.10

 

 

 

206,338

 

 

542

 

0.26

 

Other borrowings

 

26,427

 

 

370

 

1.40

 

 

 

32,147

 

 

629

 

1.96

 

Total interest-bearing liabilities

 

6,483,805

 

 

23,036

 

0.36

 

 

 

5,398,565

 

 

34,778

 

0.64

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

3,597,204

 

 

 

 

 

 

1,854,982

 

 

 

 

Other liabilities

 

109,148

 

 

 

 

 

 

97,492

 

 

 

 

Total liabilities

 

10,190,157

 

 

 

 

 

 

7,351,039

 

 

 

 

Shareholders’ equity

 

1,277,153

 

 

 

 

 

 

902,875

 

 

 

 

Total liabilities and shareholders’ equity

$

11,467,310

 

 

 

 

 

$

8,253,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net interest income

 

 

$

365,345

 

 

 

 

 

$

273,190

 

 

Net interest margin

 

 

 

 

3.41

%

 

 

 

 

 

3.56

%

* Non-taxable income is presented on a tax-equivalent basis using a 25.2% and 24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustments were $5.2 million, and $3.2 million for the years ended December 31, 2021, and 2020, respectively.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

 

 

Quarter ended

($ in thousands)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

LOAN PORTFOLIO

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

3,392,375

 

 

$

3,379,171

 

 

$

2,930,805

 

 

$

3,079,643

 

 

$

3,088,995

 

Commercial real estate

 

4,176,928

 

 

 

4,179,712

 

 

 

3,200,748

 

 

 

3,186,970

 

 

 

3,087,827

 

Construction real estate

 

734,073

 

 

 

747,758

 

 

 

556,776

 

 

 

510,501

 

 

 

546,686

 

Residential real estate

 

454,052

 

 

 

542,690

 

 

 

305,497

 

 

 

303,047

 

 

 

319,179

 

Other

 

260,214

 

 

 

267,252

 

 

 

232,441

 

 

 

208,620

 

 

 

182,248

 

Total loans

$

9,017,642

 

 

$

9,116,583

 

 

$

7,226,267

 

 

$

7,288,781

 

 

$

7,224,935

 

 

 

 

 

 

 

 

 

 

 

DEPOSIT PORTFOLIO

 

 

 

 

 

 

 

 

 

Noninterest-bearing accounts

$

4,578,436

 

 

$

4,375,713

 

 

$

3,111,581

 

 

$

2,910,216

 

 

$

2,711,828

 

Interest-bearing transaction accounts

 

2,465,884

 

 

 

2,253,639

 

 

 

2,013,129

 

 

 

1,990,308

 

 

 

1,768,497

 

Money market and savings accounts

 

3,691,186

 

 

 

3,571,252

 

 

 

3,000,460

 

 

 

3,093,569

 

 

 

2,954,969

 

Brokered certificates of deposit

 

128,970

 

 

 

128,923

 

 

 

50,209

 

 

 

50,209

 

 

 

50,209

 

Other certificates of deposit

 

479,323

 

 

 

498,248

 

 

 

464,125

 

 

 

471,142

 

 

 

499,886

 

Total deposit portfolio

$

11,343,799

 

 

$

10,827,775

 

 

$

8,639,504

 

 

$

8,515,444

 

 

$

7,985,389

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

Total loans

$

9,030,982

 

 

$

8,666,353

 

 

$

7,306,471

 

 

$

7,192,776

 

 

$

6,780,701

 

Debt and equity investments

 

1,753,159

 

 

 

1,594,938

 

 

 

1,502,582

 

 

 

1,417,305

 

 

 

1,395,806

 

Interest-earning assets

 

12,373,149

 

 

 

11,513,279

 

 

 

9,615,981

 

 

 

9,289,741

 

 

 

8,524,136

 

Total assets

 

13,267,193

 

 

 

12,334,558

 

 

 

10,281,344

 

 

 

9,940,052

 

 

 

9,141,159

 

Deposits

 

11,167,003

 

 

 

10,297,153

 

 

 

8,580,211

 

 

 

8,207,379

 

 

 

7,311,074

 

Shareholders’ equity

 

1,495,396

 

 

 

1,394,096

 

 

 

1,116,969

 

 

 

1,096,481

 

 

 

992,017

 

Tangible common equity1

 

1,071,902

 

 

 

1,028,001

 

 

 

835,405

 

 

 

813,568

 

 

 

731,813

 

 

 

 

 

 

 

 

 

 

 

YIELDS (tax equivalent)

 

 

 

 

 

 

 

 

 

Total loans

 

4.32

%

 

 

4.32

%

 

 

4.35

%

 

 

4.35

%

 

 

4.46

%

Debt and equity investments

 

2.30

 

 

 

2.38

 

 

 

2.46

 

 

 

2.52

 

 

 

2.56

 

Interest-earning assets

 

3.50

 

 

 

3.60

 

 

 

3.70

 

 

 

3.76

 

 

 

3.97

 

Interest-bearing deposits

 

0.17

 

 

 

0.17

 

 

 

0.18

 

 

 

0.20

 

 

 

0.25

 

Total deposits

 

0.10

 

 

 

0.11

 

 

 

0.12

 

 

 

0.13

 

 

 

0.17

 

Subordinated debentures

 

5.64

 

 

 

5.55

 

 

 

5.60

 

 

 

5.61

 

 

 

5.52

 

FHLB advances and other borrowed funds

 

0.43

 

 

 

0.43

 

 

 

0.49

 

 

 

0.46

 

 

 

0.61

 

Interest-bearing liabilities

 

0.31

 

 

 

0.35

 

 

 

0.37

 

 

 

0.40

 

 

 

0.47

 

Net interest margin

 

3.32

 

 

 

3.40

 

 

 

3.46

 

 

 

3.50

 

 

 

3.66

 

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)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

ASSET QUALITY

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

$

3,263

 

 

$

1,850

 

 

$

869

 

 

$

5,647

 

 

$

(612

)

Nonperforming loans

 

28,024

 

 

 

41,554

 

 

 

42,252

 

 

 

36,659

 

 

 

38,507

 

Classified assets

 

100,797

 

 

 

104,220

 

 

 

100,063

 

 

 

114,713

 

 

 

123,808

 

Nonperforming loans to total loans

 

0.31

%

 

 

0.46

%

 

 

0.58

%

 

 

0.50

%

 

 

0.53

%

Nonperforming assets to total assets

 

0.23

%

 

 

0.35

%

 

 

0.44

%

 

 

0.42

%

 

 

0.45

%

Allowance for credit losses to total loans

 

1.61

%

 

 

1.67

%

 

 

1.77

%

 

 

1.80

%

 

 

1.89

%

Allowance for credit losses to nonperforming loans

 

517.6

%

 

 

366.0

%

 

 

303.4

%

 

 

358.8

%

 

 

354.9

%

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

0.14

%

 

 

0.08

%

 

 

0.05

%

 

 

0.32

%

 

 

(0.04

)%

 

 

 

 

 

 

 

 

 

 

WEALTH MANAGEMENT

 

 

 

 

 

 

 

 

 

Trust assets under management

$

2,083,543

 

 

$

2,017,178

 

 

$

1,945,293

 

 

$

1,809,001

 

 

$

1,783,089

 

Trust assets under administration

 

2,556,266

 

 

 

2,486,152

 

 

 

2,487,545

 

 

 

2,427,448

 

 

 

2,504,318

 

 

 

 

 

 

 

 

 

 

 

MARKET DATA

 

 

 

 

 

 

 

 

 

Book value per common share

$

38.53

 

 

$

37.52

 

 

$

35.86

 

 

$

34.95

 

 

$

34.57

 

Tangible book value per common share1

$

28.28

 

 

$

27.38

 

 

$

26.85

 

 

$

25.92

 

 

$

25.48

 

Market value per share

$

47.09

 

 

$

45.28

 

 

$

46.39

 

 

$

49.44

 

 

$

34.95

 

Period end common shares outstanding

 

37,820

 

 

 

38,372

 

 

 

31,185

 

 

 

31,259

 

 

 

31,210

 

Average basic common shares

 

38,228

 

 

 

36,878

 

 

 

31,265

 

 

 

31,247

 

 

 

28,929

 

Average diluted common shares

 

38,311

 

 

 

36,946

 

 

 

31,312

 

 

 

31,306

 

 

 

28,968

 

 

 

 

 

 

 

 

 

 

 

CAPITAL

 

 

 

 

 

 

 

 

 

Total risk-based capital to risk-weighted assets

 

14.7

%

 

 

14.5

%

 

 

14.9

%

 

 

15.1

%

 

 

14.9

%

Tier 1 capital to risk-weighted assets

 

13.0

%

 

 

12.2

%

 

 

12.3

%

 

 

12.3

%

 

 

12.1

%

Common equity tier 1 capital to risk-weighted assets

 

11.3

%

 

 

11.2

%

 

 

11.1

%

 

 

11.0

%

 

 

10.9

%

Tangible common equity to tangible assets1

 

8.1

%

 

 

8.4

%

 

 

8.3

%

 

 

8.2

%

 

 

8.4

%

 

 

 

 

 

 

 

 

 

 

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

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

 

 

Quarter ended

 

Year ended

($ in thousands, except per share data)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

 

Dec 31,

2021

 

Dec 31,

2020

CORE PERFORMANCE MEASURES

 

 

 

 

Net interest income

$

102,060

 

 

$

97,273

 

 

$

81,738

 

 

$

79,123

 

 

$

77,446

 

 

$

360,194

 

 

$

270,001

 

Less incremental accretion income

 

 

 

 

 

 

 

 

 

 

 

 

 

856

 

 

 

 

 

 

4,083

 

Core net interest income

 

102,060

 

 

 

97,273

 

 

 

81,738

 

 

 

79,123

 

 

 

76,590

 

 

 

360,194

 

 

 

265,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

 

22,630

 

 

 

17,619

 

 

 

16,204

 

 

 

11,290

 

 

 

18,506

 

 

 

67,743

 

 

 

54,503

 

Less gain on sale of investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

421

 

Less gain on sale of other real estate owned

 

 

 

 

335

 

 

 

549

 

 

 

 

 

 

 

 

 

884

 

 

 

 

Less other non-core income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

265

 

Core noninterest income

 

22,630

 

 

 

17,284

 

 

 

15,655

 

 

 

11,290

 

 

 

18,506

 

 

 

66,859

 

 

 

53,817

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total core revenue

 

124,690

 

 

 

114,557

 

 

 

97,393

 

 

 

90,413

 

 

 

95,096

 

 

 

427,053

 

 

 

319,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

63,694

 

 

 

76,885

 

 

 

52,456

 

 

 

52,884

 

 

 

51,050

 

 

 

245,919

 

 

 

167,159

 

Less other expenses related to non-core acquired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

57

 

Less branch-closure expenses

 

 

 

 

3,441

 

 

 

 

 

 

 

 

 

 

 

 

3,441

 

 

 

 

Less merger-related expenses

 

2,320

 

 

 

14,671

 

 

 

1,949

 

 

 

3,142

 

 

 

2,611

 

 

 

22,082

 

 

 

4,174

 

Core noninterest expense

 

61,374

 

 

 

58,773

 

 

 

50,507

 

 

 

49,742

 

 

 

48,431

 

 

 

220,396

 

 

 

162,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core efficiency ratio

 

49.22

%

 

 

51.30

%

 

 

51.86

%

 

 

55.02

%

 

 

50.93

%

 

 

51.61

%

 

 

50.96

%

 

Quarter ended

($ in thousands)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS

Shareholders’ equity

$

1,529,116

 

 

$

1,439,635

 

 

$

1,118,301

 

 

$

1,092,497

 

 

$

1,078,975

 

Less preferred stock

 

71,988

 

 

 

 

 

 

 

 

 

 

 

 

 

Less goodwill

 

365,164

 

 

 

365,415

 

 

 

260,567

 

 

 

260,567

 

 

 

260,567

 

Less intangible assets

 

22,286

 

 

 

23,777

 

 

 

20,358

 

 

 

21,670

 

 

 

23,084

 

Tangible common equity

$

1,069,678

 

 

$

1,050,443

 

 

$

837,376

 

 

$

810,260

 

 

$

795,324

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

13,537,358

 

 

$

12,888,016

 

 

$

10,346,993

 

 

$

10,190,699

 

 

$

9,751,571

 

Less goodwill

 

365,164

 

 

 

365,415

 

 

 

260,567

 

 

 

260,567

 

 

 

260,567

 

Less intangible assets

 

22,286

 

 

 

23,777

 

 

 

20,358

 

 

 

21,670

 

 

 

23,084

 

Tangible assets

$

13,149,908

 

 

$

12,498,824

 

 

$

10,066,068

 

 

$

9,908,462

 

 

$

9,467,920

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

8.13

%

 

 

8.40

%

 

 

8.32

%

 

 

8.18

%

 

 

8.40

%

 

Quarter ended

($ in thousands)

Dec 31,

2021

 

Sep 30,

2021

 

Dec 31,

2020

AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY

Average shareholder’s equity

$

1,495,396

 

$

1,394,096

 

$

992,017

Less average preferred stock

 

35,322

 

 

 

 

Less average goodwill

 

365,164

 

 

342,622

 

 

237,639

Less average intangible assets

 

23,008

 

 

23,473

 

 

22,565

Average tangible common equity

$

1,071,902

 

$

1,028,001

 

$

731,813

 

 

 

 

 

 

 

Quarter Ended

 

Year ended

($ in thousands)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

 

Dec 31,

2021

 

Dec 31,

2020

CALCULATION OF PRE-PROVISION NET REVENUE

 

 

 

 

Net interest income

$

102,060

 

 

$

97,273

 

 

$

81,738

 

 

$

79,123

 

 

$

77,446

 

 

$

360,194

 

 

$

270,001

 

Noninterest income

 

22,630

 

 

 

17,619

 

 

 

16,204

 

 

 

11,290

 

 

 

18,506

 

 

 

67,742

 

 

 

54,503

 

Less noninterest expense

 

63,694

 

 

 

76,885

 

 

 

52,456

 

 

 

52,884

 

 

 

51,050

 

 

 

245,918

 

 

 

167,159

 

Branch-closure expenses

 

 

 

 

3,441

 

 

 

 

 

 

 

 

 

 

 

 

3,441

 

 

 

 

Merger-related expenses

 

2,320

 

 

 

14,671

 

 

 

1,949

 

 

 

3,142

 

 

 

2,611

 

 

 

22,082

 

 

 

4,174

 

PPNR

$

63,316

 

 

$

56,119

 

 

$

47,435

 

 

$

40,671

 

 

$

47,513

 

 

$

207,541

 

 

$

161,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

$

13,267,193

 

 

$

12,334,558

 

 

$

10,281,344

 

 

$

9,940,052

 

 

$

9,141,159

 

 

$

11,467,310

 

 

$

8,253,913

 

ROAA - GAAP net income

 

1.52

%

 

 

0.45

%

 

 

1.50

%

 

 

1.22

%

 

 

1.26

%

 

 

1.16

%

 

 

0.90

%

PPNR ROAA - PPNR

 

1.89

%

 

 

1.81

%

 

 

1.85

%

 

 

1.66

%

 

 

2.07

%

 

 

1.81

%

 

 

1.96

%

 

Quarter Ended

($ in thousands, except per share data)

Dec 31,

2021

 

Sep 30,

2021

 

Jun 30,

2021

 

Mar 31,

2021

 

Dec 31,

2020

IMPACT OF PAYCHECK PROTECTION PROGRAM

Net income - GAAP

$

50,811

 

 

$

13,913

 

 

$

38,405

 

 

$

29,926

 

 

$

28,931

 

PPP interest and fee income

 

(4,864

)

 

 

(6,048

)

 

 

(7,940

)

 

 

(8,475

)

 

 

(10,261

)

Related tax effect

 

1,226

 

 

 

1,506

 

 

 

1,977

 

 

 

2,110

 

 

 

2,534

 

Adjusted net income - Non-GAAP

$

47,173

 

 

$

9,371

 

 

$

32,442

 

 

$

23,561

 

 

$

21,204

 

 

 

 

 

 

 

 

 

 

 

Average diluted common shares

 

38,311

 

 

 

36,946

 

 

 

31,312

 

 

 

31,303

 

 

 

28,968

 

EPS - GAAP net income

$

1.33

 

 

$

0.38

 

 

$

1.23

 

 

$

0.96

 

 

$

1.00

 

EPS - Adjusted net income

$

1.23

 

 

$

0.25

 

 

$

1.04

 

 

$

0.75

 

 

$

0.73

 

 

 

 

 

 

 

 

 

 

 

Average assets - GAAP

$

13,267,193

 

 

$

12,334,558

 

 

$

10,281,344

 

 

$

9,940,052

 

 

$

9,141,159

 

Average PPP loans, net

 

(365,295

)

 

 

(489,104

)

 

 

(664,375

)

 

 

(692,161

)

 

 

(806,697

)

Adjusted average assets - Non-GAAP

$

12,901,898

 

 

$

11,845,454

 

 

$

9,616,969

 

 

$

9,247,891

 

 

$

8,334,462

 

 

 

 

 

 

 

 

 

 

 

ROAA - GAAP net income

 

1.52

%

 

 

0.45

%

 

 

1.50

%

 

 

1.22

%

 

 

1.26

%

ROAA - Adjusted net income, adjusted average assets

 

1.45

%

 

 

0.31

%

 

 

1.35

%

 

 

1.03

%

 

 

1.01

%

 

 

 

 

 

 

 

 

 

 

PPNR - Non-GAAP (see reconciliation above)

$

63,316

 

 

$

56,119

 

 

$

47,435

 

 

$

40,671

 

 

$

47,513

 

PPP interest and fee income

 

(4,864

)

 

 

(6,048

)

 

 

(7,940

)

 

 

(8,475

)

 

 

(10,261

)

Adjusted PPNR - Non-GAAP

$

58,452

 

 

$

50,071

 

 

$

39,495

 

 

$

32,196

 

 

$

37,252

 

 

 

 

 

 

 

 

 

 

 

PPNR ROAA - PPNR

 

1.89

%

 

 

1.81

%

 

 

1.85

%

 

 

1.66

%

 

 

2.07

%

PPNR ROAA - adjusted PPNR, adjusted average assets

 

1.80

%

 

 

1.68

%

 

 

1.65

%

 

 

1.41

%

 

 

1.78

%

 

 

 

 

 

 

 

 

 

 

Tangible assets - Non-GAAP (see reconciliation above)

$

13,149,908

 

 

$

12,498,824

 

 

$

10,066,068

 

 

$

9,908,462

 

 

$

9,467,920

 

PPP loans outstanding, net

 

(271,958

)

 

 

(438,959

)

 

 

(396,660

)

 

 

(737,660

)

 

 

(698,645

)

Adjusted tangible assets - Non-GAAP

$

12,877,950

 

 

$

12,059,865

 

 

$

9,669,408

 

 

$

9,170,802

 

 

$

8,769,275

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity Non - GAAP (see reconciliation above)

$

1,069,678

 

 

$

1,050,443

 

 

$

837,376

 

 

$

810,260

 

 

$

795,324

 

Tangible common equity to tangible assets

 

8.13

%

 

 

8.40

%

 

 

8.32

%

 

 

8.18

%

 

 

8.40

%

Tangible common equity to tangible assets - adjusted tangible assets

 

8.31

%

 

 

8.71

%

 

 

8.66

%

 

 

8.84

%

 

 

9.07

%

 

 

 

 

 

 

 

 

 

 

Average assets for leverage ratio

$

12,915,944

 

 

$

11,972,171

 

 

$

10,021,240

 

 

$

9,675,300

 

 

$

8,868,548

 

Average PPP loans, net

 

(365,295

)

 

 

(489,104

)

 

 

(664,375

)

 

 

(692,161

)

 

 

(806,697

)

Adjusted average assets for leverage ratio - Non-GAAP

$

12,550,649

 

 

$

11,483,067

 

 

$

9,356,865

 

 

$

8,983,139

 

 

$

8,061,851

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital

$

1,257,462

 

 

$

1,166,529

 

 

$

937,840

 

 

$

914,459

 

 

$

889,527

 

Leverage ratio

 

9.7

%

 

 

9.7

%

 

 

9.4

%

 

 

9.5

%

 

 

10.0

%

Leverage ratio - adjusted average assets for leverage ratio

 

10.0

%

 

 

10.2

%

 

 

10.0

%

 

 

10.2

%

 

 

11.0

%

 

 

 

 

 

 

 

 

 

 

Net interest income - tax equivalent

$

103,567

 

 

$

98,573

 

 

$

82,962

 

 

$

80,243

 

 

$

78,483

 

PPP interest and fee income

 

(4,864

)

 

 

(6,048

)

 

 

(7,940

)

 

 

(8,475

)

 

 

(10,261

)

Adjusted net interest income - tax equivalent

$

98,703

 

 

$

92,525

 

 

$

75,022

 

 

$

71,768

 

 

$

68,222

 

 

 

 

 

 

 

 

 

 

 

Average earning assets -GAAP

$

12,373,149

 

 

$

11,513,279

 

 

$

9,615,981

 

 

$

9,289,741

 

 

$

8,524,136

 

Average PPP loans, net

 

(365,295

)

 

 

(489,104

)

 

 

(664,375

)

 

 

(692,161

)

 

 

(806,697

)

Adjusted average earning assets - Non-GAAP

$

12,007,854

 

 

$

11,024,175

 

 

$

8,951,606

 

 

$

8,597,580

 

 

$

7,717,439

 

 

 

 

 

 

 

 

 

 

 

Net interest margin - tax equivalent

 

3.32

%

 

 

3.40

%

 

 

3.46

%

 

 

3.50

%

 

 

3.66

%

Net interest margin - tax equivalent - adjusted net interest income, adjusted average earning assets

 

3.26

%

 

 

3.33

%

 

 

3.36

%

 

 

3.39

%

 

 

3.52

%

 

 

 

 

 

 

 

 

 

 

Loans - GAAP

$

9,017,642

 

 

$

9,116,583

 

 

$

7,226,267

 

 

$

7,288,781

 

 

$

7,224,935

 

PPP and other guaranteed loans, net

 

(1,151,895

)

 

 

(1,277,452

)

 

 

(1,106,414

)

 

 

(1,377,302

)

 

 

(1,297,212

)

Adjusted loans - Non-GAAP

$

7,865,747

 

 

$

7,839,131

 

 

$

6,119,853

 

 

$

5,911,479

 

 

$

5,927,723

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

$

145,041

 

 

$

152,096

 

 

$

128,185

 

 

$

131,527

 

 

$

136,671

 

Allowance for credit losses/loans - GAAP

 

1.61

%

 

 

1.67

%

 

 

1.77

%

 

 

1.80

%

 

 

1.89

%

Allowance for credit losses/loans - adjusted loans

 

1.84

%

 

 

1.94

%

 

 

2.09

%

 

 

2.22

%

 

 

2.31

%

 

Contacts

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

Media: Steve Richardson, SVP Corporate Communications (314) 995-5695

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