EXHIBIT 99.1
For more information contact:
Jerry Mueller, Senior Vice President (314) 512-7251
Ann Marie Mayuga, AMM Communications (314) 485-9499
ENTERPRISE FINANCIAL REPORTS SECOND QUARTER 2012 RESULTS
| |
| • | Second quarter net income of $8.8 million or $0.44 per diluted share, up 6% and 2%, respectively, over prior year |
| |
| • | Commercial & Industrial loans grow 6% over linked quarter and 22% over prior year period |
| |
| • | Nonperforming assets decrease 10% from one year ago to 1.82% of total assets |
| |
| • | Net interest rate margin rises to 4.81% compared to 4.75% a year ago |
| |
| • | Core deposits increase 11% over prior year; noninterest-bearing demand deposits up 32% |
St. Louis, July 26, 2012. Enterprise Financial Services Corp (NASDAQ: EFSC) (the “Company”) reported net income of $8.8 million for the quarter ended June 30, 2012, a 6% increase, compared to net income of $8.3 million for the prior year period. After deducting dividends on preferred stock, the Company reported net income of $0.44 per diluted share for the second quarter of 2012, a 2% increase, compared to net income of $0.43 per diluted share for the second quarter of 2011.
Peter Benoist, President and CEO, commented, “Robust earnings results for the second quarter reflect growing strength in our core business, supplemented by a sharp increase in revenues generated by FDIC covered assets. The fundamental trends underlying our core business continue to improve. Loans outstanding, exclusive of covered loans, were 7% higher than a year ago, with C&I loans up 22% year over year. We've been pleased by our bankers' ability to capture market share and maintain margins in this competitive environment. The fee income side of our business is growing as well, with revenues from wealth management, service charges, state tax credit brokerage and other sources increasing 10% over last year. Year to date, these revenues are up 19%.”
“At the same time, improving asset quality enabled us to record a very small provision expense for the quarter,” said Benoist. “Nonperforming loan and nonperforming asset ratios have declined to 2.08% and 1.82%, respectively. While we are pleased with the improvement in second quarter asset quality and expect a continuation of this trend, we also remain cautious regarding the slow rate of improvement in the real estate markets in general."
Benoist continued, “Our acquired FDIC-covered assets remain a material contributor to earnings. Net revenues from covered assets increased to $7.4 million in the second quarter, driven by faster than expected loan payoffs and paydowns. These accelerated payments tend to vary on a quarterly basis and add some volatility to our earnings results, but our experience to date with covered assets continues to be very favorable.”
Banking Segment
Deposits
Total deposits at June 30, 2012 were $2.6 billion, a decrease of $99.9 million, or 4%, from March 31, 2012. The decrease in deposits from the linked quarter was attributable to a 6% reduction in certificates of deposit, partially offset by a 5% increase in demand deposits. Compared to the prior year period, total deposits increased $193.0 million, or 8%. The year over year increase in deposits was largely comprised of noninterest-bearing demand deposits and money market and savings accounts with higher cost certificates of deposit declining during the twelve month period as the
Company continues to manage down its cost of funds. Money market, savings accounts and other interest-bearing transaction accounts increased $130.4 million, or 11%, over the prior year period, primarily as a result of the Company's acquisition of the First National Bank of Olathe (FNBO) in August, 2011.
Noninterest-bearing demand deposits rose $31.8 million, or 5%, in the linked quarter and $150.3 million, or 32%, from the prior year period and represented 24% of total deposits at June 30, 2012, up from 20% at June 30, 2011.
Core deposits, which exclude brokered certificates of deposit and include reciprocal CDARS deposits, represented 96% of total deposits at June 30, 2012, compared to 94% in the prior year period.
Loans not covered under FDIC loss share agreements ("Non-covered loans")
Portfolio loans totaled $1.9 billion at June 30, 2012, increasing $31.4 million, or 2%, in the second quarter of 2012.
The Company, which historically has been a strong Commercial and Industrial, or C&I, lender, posted a $49.3 million, or 6%, increase in C&I loans during the second quarter, the eighth consecutive quarter of growth in that lending category. C&I loans represented 43% of the Company's loan portfolio at June 30, 2012. Construction and Residential Real Estate loans decreased $14.3 million from the linked quarter as the Company continued to reduce its exposure to these sectors.
On a year over year basis, portfolio loans increased $122.8 million, or 7%. Of that increase, Commercial and Industrial loans increased $153.0 million, or 22%, since June 30, 2011, while Construction and Residential Real Estate loans decreased $43.0 million, or 13%, over the same time frame.
Asset quality for Non-covered loans and other real estate not covered by loss share agreements
Nonperforming loans, including troubled debt restructurings of $10.4 million, were $40.6 million at June 30, 2012, compared to $47.2 million at March 31, 2012 and $43.1 million at June 30, 2011. During the quarter ended June 30, 2012, there were $1.3 million of additions to nonperforming loans, $2.0 million of charge-offs, $4.6 million of other principal reductions, and $1.1 million of assets transferred to other real estate. The nonperforming loan additions of $1.3 million in the second quarter of 2012 represent the lowest level of nonperforming loan additions in over three years.
Nonperforming loans represented 2.08% of portfolio loans at June 30, 2012, versus 2.46% of portfolio loans at March 31, 2012, and 2.36% at June 30, 2011.
Nonperforming loans, by portfolio class at June 30, 2012 were as follows:
|
| | | | | | | | | | |
| (in millions) | Total portfolio | | Nonperforming | | % NPL |
Construction, Real Estate/Land Acquisition & Development | $ | 142.5 |
| | $ | 11.3 |
| | 7.93 | % |
| Commercial Real Estate - Investor Owned | 479.5 |
| | 9.9 |
| | 2.07 | % |
| Commercial Real Estate - Owner Occupied | 322.5 |
| | 10.1 |
| | 3.13 | % |
| Residential Real Estate | 149.4 |
| | 4.5 |
| | 3.01 | % |
| Commercial & Industrial | 841.4 |
| | 4.7 |
| | 0.56 | % |
| Consumer & Other | 13.7 |
| | — |
| | — | % |
| Total | $ | 1,949.0 |
| | $ | 40.5 |
| | 2.08 | % |
Excluding non-accrual loans, portfolio loans that were 30-89 days delinquent at June 30, 2012, remained at low levels, representing 0.13% of the portfolio compared to 0.62% at March 31, 2012 and 0.23% of June 30, 2011.
Other real estate totaled $17.4 million at June 30, 2012, a decrease of $2.2 million from March 31, 2012. At June 30, 2011 other real estate totaled $21.0 million. During the second quarter of 2012, the Company sold $3.6 million of other real estate, resulting in a gain of $487,000.
Excluding assets covered under FDIC loss share, nonperforming assets as a percentage of total assets represented 1.82% of total assets at June 30, 2012 compared to 2.06% at March 31, 2012 and 2.19% at June 30, 2011.
Net charge-offs in the second quarter of 2012 were $1.4 million representing an annual rate of 0.28% of average loans, compared to net charge-offs of $2.1 million, an annualized rate of 0.45% of average loans, in the linked first quarter and $5.0 million, an annualized rate of 1.11% of average loans, in the second quarter of 2011.
Provision for loan losses for loans not covered under loss share agreements was $75,000 in the second quarter of 2012, compared to $1.7 million in the first quarter of 2012 and $4.3 million in the second quarter of 2011. The lower loan loss provision in the second quarter of 2012 compared to the the second quarter of 2011 was due to a minimal number of loan risk rating downgrades, more favorable loss migration statistics from a year ago, and payoff of one specific loan which carried a $1.3 million reserve.
The Company's allowance for loan losses was 1.86% of loans at June 30, 2012, representing 90% of nonperforming loans.
Loans and other real estate covered under FDIC loss share agreements
Loans covered under FDIC loss share agreements ("Covered loans") totaled $242.5 million at June 30, 2012, a decrease of $26.8 million, or 10%, from the linked first quarter primarily as a result of principal paydowns.
Other real estate, covered under FDIC loss share agreements, at June 30, 2012 was reduced to $19.8 million, a 23% decrease from $25.7 million at March 31, 2012. During the second quarter of 2012, the Company sold $9.8 million of other real estate covered under FDIC loss share agreements, resulting in a gain of $769,000.
For Covered loans, the Company remeasures contractual and expected cashflows on a quarterly basis. When the remeasurement process results in a decrease in expected cash flows due to an increase in expected credit losses, impairment is recorded. As a result of this impairment, the FDIC loss share receivable is increased to reflect anticipated future cash to be received from the FDIC. The amount of the increase is determined based on the specific loss share agreement, but is generally 80% of the losses. In the second quarter of 2012, an impairment and charge-off totaling $206,000 was recorded for certain loan pools covered under loss share compared to $275,000 in the second quarter of 2011. The charge was partially offset through noninterest income by an increase in the FDIC loss share receivable.
Unplanned cash flows representing accelerated loan payoffs or paydowns are recognized as income, but also generally result in a decrease in the FDIC loss share receivable. These cash flows are, by their nature, unpredictable and can vary significantly period to period. Higher levels of accelerated cash flows in earlier periods suggest lower cash flows in later periods. The Company recognized a high level of accelerated cash flows in 2011 and the first six months of 2012, noting that there can be significant volatility in this activity.
The following table illustrates the net revenue contribution of covered assets for the most recent five quarters.
|
| | | | | | | | | | | | | | | | | | | |
| | For the Quarter ended |
| (in thousands) | June 30, 2012 | | March 31, 2012 | | December 31, 2011 | | September 30, 2011 | | June 30, 2011 |
| Accretion income | $ | 7,155 |
| | $ | 7,081 |
| | $ | 6,841 |
| | $ | 4,942 |
| | $ | 3,903 |
|
| Accelerated cash flows | 5,315 |
| | 2,691 |
| | 4,733 |
| | 1,620 |
| | 6,892 |
|
| Other | 106 |
| | 130 |
| | 29 |
| | 4 |
| | 88 |
|
| Total interest income | 12,576 |
| | 9,902 |
| | 11,603 |
| | 6,566 |
| | 10,883 |
|
| Provision for loan losses | (206 | ) | | (2,285 | ) | | 144 |
| | (2,672 | ) | | (275 | ) |
| Gain on sale of other real estate | 769 |
| | 1,173 |
| | 144 |
| | 588 |
| | 94 |
|
| Change in FDIC loss share receivable | (5,694 | ) | | (2,956 | ) | | (4,642 | ) | | 1,513 |
| | (1,081 | ) |
| Pre-tax net revenue | $ | 7,445 |
| | $ | 5,834 |
| | $ | 7,249 |
| | $ | 5,995 |
| | $ | 9,621 |
|
Net Interest Income
Net interest income for the banking segment in the second quarter increased $3.4 million from the linked first quarter, primarily due to higher accelerated cash flows in the Covered loans. On a year over year basis, net interest income increased $2.9 million, or 9%. Including the effect of parent company debt, the net interest rate margin was 4.81% for the second quarter of 2012, compared to 4.33% for the first quarter of 2012 and 4.75% in the second quarter of 2011. In the second quarter of 2012, Covered loans yielded 20.15%, including effects of accelerated discount accretion due to cash flows on paid off Covered loans.
Absent Covered loans, and the related nonearning assets, the net interest rate margin was 3.46% for the second quarter of 2012 compared to 3.45% for the first quarter of 2012.
Wealth Management Segment
Fee income attributable to the Wealth Management segment includes Wealth Management revenue and income from state tax credit brokerage activities. Second quarter Wealth Management revenues of $2.0 million were $282,000, or 17%, and $333,000, or 20%, higher than the linked quarter and prior year periods, respectively. Revenue increases were attributable to market value increases and new business activity.
Trust assets under administration were $1.6 billion at June 30, 2012, compared to $1.7 billion at March 31, 2012 and $1.6 billion at June 30, 2011.
State tax credit brokerage activities, net of fair value marks on tax credit assets and related interest rate hedges, were $587,000 for the second quarter of 2012, compared to $337,000 for the linked quarter and $987,000 in the second quarter of 2011. During the second quarter, the Company purchased $18.0 million of additional 10 year tax credit streams at a discount.
Other Business Results
Total capital to risk-weighted assets was 13.88% at June 30, 2012 compared to 13.85% at March 31, 2012 and 15.61% at June 30, 2011. The tangible common equity ratio was 5.84% at June 30, 2012 versus 5.41% at March 31, 2012 and 6.53% at June 30, 2011. The Company's Tier 1 common equity ratio was 7.62% at June 30, 2012 compared to 7.46% at March 31, 2012 and 8.87% at June 30, 2011. The Company believes that the tangible common equity and the Tier 1 common equity ratios are important financial measures of capital strength even though they are considered to be non-GAAP measures and are not part of the regulatory capital requirements to which the Company is subject. The attached tables contain a reconciliation of these ratios to U.S. GAAP.
Noninterest expenses were $21.4 million for the quarter ended June 30, 2012, compared to $21.4 million for the quarter ended March 31, 2012 and $18.0 million for the quarter ended June 30, 2011. The increase over the prior year period was primarily due to increases in salaries and benefits, occupancy, data processing and other operating expenses related to the 2011 acquisitions.
The Company's efficiency ratio was 61.2% for the quarter ended June 30, 2012 compared to 61.7% for quarter ended March 31, 2012 and 51.2% for the prior year period.
The Company will host a conference call at 2:30 p.m. CDT on Thursday, July 26, 2012. During the call, management will address the second quarter of 2012 results. The call will be accessible on Enterprise Financial Services Corp's home page, at www.enterprisebank.com under “Investor Relations” and by telephone at 1-888-285-8004 (Conference ID #92141885.) Recorded replays of the conference call will be available on the website beginning two hours after the call's completion. The replay will be available for approximately two weeks following the conference call.
Enterprise Financial Services Corp operates commercial banking and wealth management businesses in metropolitan St. Louis, Kansas City, and Phoenix. The Company is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.
# # #
Readers should note that in addition to the historical information contained herein, this press release contains forward-looking statements, which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those contemplated from such statements. We use the words “expect” and “intend” and variations of such words and similar expressions in this communication to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, burdens imposed by federal and state regulations of banks, credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to local and national economic conditions, risks associated with rapid increase or decrease in prevailing interest rates, effects of mergers and acquisitions, effects of critical accounting policies and judgments, legal and regulatory developments and competition from banks and other financial institutions, as well as other risk factors described in the Company's 2011 Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events unless required under the federal securities laws.
ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
|
| | | | | | | | | | | | | | | |
| | For the Quarter ended | | For the Six Months ended |
| (in thousands, except per share data) | Jun 30,
2012 | | Jun 30,
2011 | | Jun 30,
2012 | | Jun 30,
2011 |
| INCOME STATEMENTS | | | | | | | |
| NET INTEREST INCOME | | | | | | | |
| Total interest income | $ | 40,029 |
| | $ | 38,559 |
| | $ | 77,244 |
| | $ | 69,092 |
|
| Total interest expense | 5,896 |
| | 7,555 |
| | 12,482 |
| | 15,380 |
|
| Net interest income | 34,133 |
| | 31,004 |
| | 64,762 |
| | 53,712 |
|
| Provision for loan losses not covered under FDIC loss share | 75 |
| | 4,300 |
| | 1,793 |
| | 7,900 |
|
| Provision for loan losses covered under FDIC loss share | 206 |
| | 275 |
| | 2,491 |
| | 275 |
|
| Net interest income after provision for loan losses | 33,852 |
| | 26,429 |
| | 60,478 |
| | 45,537 |
|
| | | | | | | | |
| NONINTEREST INCOME | | | | | | | |
| Wealth Management revenue | 1,991 |
| | 1,658 |
| | 3,700 |
| | 3,341 |
|
| Deposit service charges | 1,413 |
| | 1,194 |
| | 2,743 |
| | 2,331 |
|
| Gain on sale of other real estate | 1,256 |
| | 99 |
| | 2,413 |
| | 522 |
|
| State tax credit activity, net | 587 |
| | 987 |
| | 924 |
| | 1,142 |
|
| Gain on sale of investment securities | 134 |
| | 506 |
| | 1,156 |
| | 680 |
|
| Change in FDIC loss share receivable | (5,694 | ) | | (1,081 | ) | | (8,650 | ) | | (365 | ) |
| Other income | 1,158 |
| | 855 |
| | 2,542 |
| | 1,530 |
|
| Total noninterest income | 845 |
| | 4,218 |
| | 4,828 |
| | 9,181 |
|
| | | | | | | | |
| NONINTEREST EXPENSE | | | | | | | |
| Employee compensation and benefits | 11,052 |
| | 8,265 |
| | 21,515 |
| | 16,953 |
|
| Occupancy | 1,379 |
| | 1,141 |
| | 2,763 |
| | 2,280 |
|
| Furniture and equipment | 386 |
| | 431 |
| | 850 |
| | 785 |
|
| Other | 8,597 |
| | 8,187 |
| | 17,650 |
| | 15,971 |
|
| Total noninterest expenses | 21,414 |
| | 18,024 |
| | 42,778 |
| | 35,989 |
|
| | | | | | | | |
| Income before income tax expense | 13,283 |
| | 12,623 |
| | 22,528 |
| | 18,729 |
|
| Income tax expense | 4,517 |
| | 4,350 |
| | 7,577 |
| | 6,344 |
|
| Net income | 8,766 |
| | 8,273 |
| | 14,951 |
| | 12,385 |
|
| Dividends on preferred stock | (644 | ) | | (630 | ) | | (1,285 | ) | | (1,256 | ) |
| Net income available to common shareholders | $ | 8,122 |
| | $ | 7,643 |
| | $ | 13,666 |
| | $ | 11,129 |
|
| | | | | | | | |
| Basic earnings per share | $ | 0.46 |
| | $ | 0.45 |
| | $ | 0.77 |
| | $ | 0.71 |
|
| Diluted earnings per share | $ | 0.44 |
| | $ | 0.43 |
| | $ | 0.75 |
| | $ | 0.70 |
|
| Return on average assets | 1.02 | % | | 1.05 | % | | 0.85 | % | | 0.77 | % |
| Return on average common equity | 14.99 | % | | 18.06 | % | | 12.80 | % | | 14.01 | % |
| Efficiency ratio | 61.22 | % | | 51.17 | % | | 61.47 | % | | 57.22 | % |
| Noninterest expenses to average assets | 2.68 | % | | 2.48 | % | | 2.65 | % | | 2.50 | % |
| | | | | | | | |
| YIELDS (fully tax equivalent) | | | | | | | |
| Loans not covered under FDIC loss share | 5.17 | % | | 5.44 | % | | 5.20 | % | | 5.47 | % |
| Loans covered under FDIC loss share | 20.15 | % | | 25.33 | % | | 17.04 | % | | 16.70 | % |
| Total portfolio loans | 6.89 | % | | 7.19 | % | | 6.64 | % | | 6.49 | % |
| Securities | 1.96 | % | | 2.85 | % | | 2.00 | % | | 2.78 | % |
| Federal funds sold | 0.23 | % | | 0.25 | % | | 0.24 | % | | 0.26 | % |
| Yield on interest-earning assets | 5.63 | % | | 5.90 | % | | 5.44 | % | | 5.35 | % |
| Interest-bearing deposits | 0.79 | % | | 1.12 | % | | 0.82 | % | | 1.14 | % |
| Subordinated debt | 4.63 | % | | 5.31 | % | | 5.03 | % | | 5.33 | % |
| Borrowed funds | 1.70 | % | | 1.99 | % | | 1.73 | % | | 1.94 | % |
| Cost of paying liabilities | 1.01 | % | | 1.36 | % | | 1.05 | % | | 1.37 | % |
| Net interest spread | 4.62 | % | | 4.54 | % | | 4.39 | % | | 3.98 | % |
| Net interest rate margin | 4.81 | % | | 4.75 | % | | 4.57 | % | | 4.17 | % |
ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
|
| | | | | | | | | | | | | | | | | | | |
| | At the Quarter ended |
| (in thousands, except per share data) | Jun 30,
2012 | | Mar 31,
2012 | | Dec 31,
2011 | | Sep 30,
2011 | | Jun 30,
2011 |
| BALANCE SHEETS | | | | | | | | | |
| | | | | | | | | | |
| ASSETS | | | | | | | | | |
| Cash and due from banks | $ | 29,832 |
| | $ | 27,595 |
| | $ | 20,791 |
| | $ | 26,015 |
| | $ | 22,806 |
|
| Federal funds sold | 58 |
| | 77 |
| | 143 |
| | 2,371 |
| | 1,321 |
|
| Interest-bearing deposits | 47,589 |
| | 149,000 |
| | 168,711 |
| | 240,488 |
| | 175,676 |
|
| Debt and equity investments | 614,237 |
| | 520,642 |
| | 607,709 |
| | 477,131 |
| | 486,990 |
|
| Loans held for sale | 4,928 |
| | 5,813 |
| | 6,494 |
| | 5,076 |
| | 1,688 |
|
| | | | | | | | | | |
| Portfolio loans not covered under FDIC loss share | 1,948,994 |
| | 1,917,550 |
| | 1,897,074 |
| | 1,867,956 |
| | 1,826,228 |
|
| Less: Allowance for loan losses | 36,304 |
| | 37,596 |
| | 37,989 |
| | 42,883 |
| | 42,157 |
|
| Portfolio loans not covered under FDIC loss share, net | 1,912,690 |
| | 1,879,954 |
| | 1,859,085 |
| | 1,825,073 |
| | 1,784,071 |
|
| Portfolio loans covered under FDIC loss share, net of the allowance for loan losses | 240,599 |
| | 266,239 |
| | 298,975 |
| | 324,374 |
| | 169,113 |
|
| Portfolio loans, net | 2,153,289 |
| | 2,146,193 |
| | 2,158,060 |
| | 2,149,447 |
| | 1,953,184 |
|
| | | | | | | | | | |
| Other real estate not covered under FDIC loss share | 17,443 |
| | 19,655 |
| | 17,217 |
| | 21,370 |
| | 20,978 |
|
| Other real estate covered under FDIC loss share | 19,832 |
| | 25,725 |
| | 36,471 |
| | 51,193 |
| | 21,812 |
|
| Premises and equipment, net | 21,739 |
| | 21,543 |
| | 18,986 |
| | 18,976 |
| | 19,488 |
|
| State tax credits, held for sale | 65,648 |
| | 48,165 |
| | 50,446 |
| | 56,278 |
| | 57,058 |
|
| FDIC loss share receivable | 88,436 |
| | 172,497 |
| | 184,554 |
| | 194,216 |
| | 91,859 |
|
| Goodwill | 30,334 |
| | 30,334 |
| | 30,334 |
| | 30,334 |
| | 3,622 |
|
| Core deposit intangible | 8,310 |
| | 8,795 |
| | 9,285 |
| | 9,471 |
| | 1,791 |
|
| Other assets | 81,459 |
| | 69,120 |
| | 68,578 |
| | 66,418 |
| | 65,110 |
|
| Total assets | $ | 3,183,134 |
| | $ | 3,245,154 |
| | $ | 3,377,779 |
| | $ | 3,348,784 |
| | $ | 2,923,383 |
|
| | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | |
| Noninterest-bearing deposits | $ | 623,956 |
| | $ | 592,172 |
| | $ | 585,479 |
| | $ | 557,290 |
| | $ | 473,688 |
|
| Interest-bearing deposits | 1,980,317 |
| | 2,111,985 |
| | 2,205,874 |
| | 2,259,972 |
| | 1,937,589 |
|
| Total deposits | 2,604,273 |
| | 2,704,157 |
| | 2,791,353 |
| | 2,817,262 |
| | 2,411,277 |
|
| Subordinated debentures | 85,081 |
| | 85,081 |
| | 85,081 |
| | 85,081 |
| | 85,081 |
|
| FHLB advances | 90,500 |
| | 87,000 |
| | 102,000 |
| | 102,000 |
| | 102,000 |
|
| Other borrowings | 132,479 |
| | 105,888 |
| | 154,545 |
| | 100,729 |
| | 87,774 |
|
| Other liabilities | 14,913 |
| | 17,012 |
| | 5,235 |
| | 9,241 |
| | 8,390 |
|
| Total liabilities | 2,927,246 |
| | 2,999,138 |
| | 3,138,214 |
| | 3,114,313 |
| | 2,694,522 |
|
| Shareholders' equity | 255,888 |
| | 246,016 |
| | 239,565 |
| | 234,471 |
| | 228,861 |
|
| Total liabilities and shareholders' equity | $ | 3,183,134 |
| | $ | 3,245,154 |
| | $ | 3,377,779 |
| | $ | 3,348,784 |
| | $ | 2,923,383 |
|
ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
|
| | | | | | | | | | | | | | | | | | | |
| | For the Quarter ended |
| (in thousands, except per share data) | Jun 30,
2012 | | Mar 31,
2012 | | Dec 31,
2011 | | Sep 30,
2011 | | Jun 30,
2011 |
| EARNINGS SUMMARY | | | | | | | | | |
| Net interest income | $ | 34,133 |
| | $ | 30,629 |
| | $ | 32,204 |
| | $ | 26,769 |
| | $ | 31,004 |
|
| Provision for loan losses not covered under FDIC loss share | 75 |
| | 1,718 |
| | — |
| | 5,400 |
| | 4,300 |
|
| Provision for loan losses covered under FDIC loss share | 206 |
| | 2,285 |
| | (144 | ) | | 2,672 |
| | 275 |
|
| Wealth Management revenue | 1,991 |
| | 1,709 |
| | 1,668 |
| | 1,832 |
| | 1,658 |
|
| Noninterest income | (1,146 | ) | | 2,274 |
| | (1,067 | ) | | 6,894 |
| | 2,560 |
|
| Noninterest expense | 21,414 |
| | 21,364 |
| | 23,427 |
| | 18,302 |
| | 18,024 |
|
| Income before income tax expense | 13,283 |
| | 9,245 |
| | 9,522 |
| | 9,121 |
| | 12,623 |
|
| Net income | 8,766 |
| | 6,185 |
| | 7,206 |
| | 5,832 |
| | 8,273 |
|
| Net income available to common shareholders | 8,122 |
| | 5,544 |
| | 6,570 |
| | 5,200 |
| | 7,643 |
|
| Diluted earnings per share | $ | 0.44 |
| | $ | 0.31 |
| | $ | 0.36 |
| | $ | 0.29 |
| | $ | 0.43 |
|
| Return on average common equity | 14.99 | % | | 10.54 | % | | 12.81 | % | | 10.39 | % | | 18.06 | % |
| Net interest rate margin (fully tax equivalent) | 4.81 | % | | 4.33 | % | | 4.35 | % | | 3.79 | % | | 4.75 | % |
| Efficiency ratio | 61.22 | % | | 61.73 | % | | 71.41 | % | | 51.56 | % | | 51.17 | % |
| MARKET DATA | | | | | | | | | |
| Book value per common share | $ | 12.44 |
| | $ | 11.94 |
| | $ | 11.61 |
| | $ | 11.35 |
| | $ | 11.05 |
|
| Tangible book value per common share | $ | 10.28 |
| | $ | 9.74 |
| | $ | 9.38 |
| | $ | 9.11 |
| | $ | 10.74 |
|
| Market value per share | $ | 10.96 |
| | $ | 11.74 |
| | $ | 14.80 |
| | $ | 13.59 |
| | $ | 13.53 |
|
| Period end common shares outstanding | 17,857 |
| | 17,796 |
| | 17,774 |
| | 17,743 |
| | 17,739 |
|
| Average basic common shares | 17,833 |
| | 17,790 |
| | 17,754 |
| | 17,741 |
| | 17,140 |
|
| Average diluted common shares | 19,286 |
| | 19,243 |
| | 19,226 |
| | 19,202 |
| | 18,602 |
|
| ASSET QUALITY | | | | | | | | | |
| Net charge-offs | $ | 1,368 |
| | $ | 2,111 |
| | $ | 4,894 |
| | $ | 4,674 |
| | $ | 4,965 |
|
| Nonperforming loans | 40,555 |
| | 47,184 |
| | 41,622 |
| | 48,038 |
| | 43,118 |
|
| Nonperforming loans to total loans | 2.08 | % | | 2.46 | % | | 2.19 | % | | 2.57 | % | | 2.36 | % |
| Nonperforming assets to total assets* | 1.82 | % | | 2.06 | % | | 1.74 | % | | 2.07 | % | | 2.19 | % |
| Allowance for loan losses to total loans | 1.86 | % | | 1.96 | % | | 2.00 | % | | 2.30 | % | | 2.31 | % |
| Net charge-offs to average loans (annualized) | 0.28 | % | | 0.45 | % | | 1.04 | % | | 1.01 | % | | 1.11 | % |
| | | | | | | | | | |
| CAPITAL | | | | | | | | | |
| Tier 1 capital to risk-weighted assets | 12.51 | % | | 12.48 | % | | 12.40 | % | | 12.24 | % | | 14.06 | % |
| Total capital to risk-weighted assets | 13.88 | % | | 13.85 | % | | 13.78 | % | | 13.70 | % | | 15.61 | % |
| Tier 1 common equity to risk-weighted assets | 7.62 | % | | 7.46 | % | | 7.32 | % | | 7.16 | % | | 8.87 | % |
| Tangible common equity to tangible assets | 5.84 | % | | 5.41 | % | | 4.99 | % | | 4.88 | % | | 6.53 | % |
| | | | | | | | | | |
| AVERAGE BALANCES | | | | | | | | | |
| Portfolio loans not covered under FDIC loss share | $ | 1,931,903 |
| | $ | 1,891,883 |
| | $ | 1,872,282 |
| | $ | 1,835,634 |
| | $ | 1,787,008 |
|
| Portfolio loans covered under FDIC loss share | 250,965 |
| | 279,700 |
| | 314,948 |
| | 256,381 |
| | 172,324 |
|
| Loans held for sale | 5,547 |
| | 5,848 |
| | 4,886 |
| | 2,857 |
| | 2,353 |
|
| Earning assets | 2,881,915 |
| | 2,877,252 |
| | 2,970,992 |
| | 2,834,690 |
| | 2,644,381 |
|
| Total assets | 3,214,013 |
| | 3,266,856 |
| | 3,385,845 |
| | 3,190,490 |
| | 2,912,331 |
|
| Deposits | 2,668,428 |
| | 2,707,042 |
| | 2,838,536 |
| | 2,661,978 |
| | 2,416,412 |
|
| Shareholders' equity | 251,491 |
| | 244,944 |
| | 236,548 |
| | 231,538 |
| | 202,490 |
|
| | | | | | | | | | |
| LOAN PORTFOLIO | | | | | | | | | |
| Commercial and industrial | $ | 841,383 |
| | $ | 792,055 |
| | $ | 763,202 |
| | $ | 706,117 |
| | $ | 688,354 |
|
| Commercial real estate | 801,983 |
| | 806,997 |
| | 811,570 |
| | 818,578 |
| | 789,556 |
|
| Construction real estate | 142,474 |
| | 148,494 |
| | 140,147 |
| | 152,464 |
| | 158,128 |
|
| Residential real estate | 149,410 |
| | 157,706 |
| | 171,034 |
| | 177,871 |
| | 176,782 |
|
| Consumer and other | 13,744 |
| | 12,298 |
| | 11,121 |
| | 12,926 |
| | 13,408 |
|
| Portfolio loans covered under FDIC loss share | 242,488 |
| | 269,249 |
| | 300,610 |
| | 326,942 |
| | 169,113 |
|
| Total loan portfolio | $ | 2,191,482 |
| | $ | 2,186,799 |
| | $ | 2,197,684 |
| | $ | 2,194,898 |
| | $ | 1,995,341 |
|
| | | | | | | | | | |
| * Excludes ORE covered by FDIC shared-loss agreements, except for their inclusion in total assets. | | |
ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
|
| | | | | | | | | | | | | | | | | | | |
| | For the Quarter ended |
| (in thousands) | Jun 30,
2012 | | Mar 31,
2012 | | Dec 31,
2011 | | Sep 30,
2011 | | Jun 30,
2011 |
| DEPOSIT PORTFOLIO | | | | | | | | | |
| Noninterest-bearing accounts | $ | 623,956 |
| | $ | 592,172 |
| | $ | 585,479 |
| | $ | 557,290 |
| | $ | 473,688 |
|
| Interest-bearing transaction accounts | 275,288 |
| | 265,604 |
| | 253,504 |
| | 241,815 |
| | 212,431 |
|
| Money market and savings accounts | 1,027,655 |
| | 1,126,756 |
| | 1,135,449 |
| | 1,117,232 |
| | 960,139 |
|
| Certificates of deposit | 677,374 |
| | 719,625 |
| | 816,921 |
| | 900,925 |
| | 765,019 |
|
| Total deposit portfolio | $ | 2,604,273 |
| | $ | 2,704,157 |
| | $ | 2,791,353 |
| | $ | 2,817,262 |
| | $ | 2,411,277 |
|
| | | | | | | | | | |
| YIELDS (fully tax equivalent) | | | | | | | | | |
| Loans not covered under FDIC loss share | 5.17 | % | | 5.23 | % | | 5.31 | % | | 5.32 | % | | 5.44 | % |
| Loans covered under FDIC loss share | 20.15 | % | | 14.24 | % | | 14.62 | % | | 10.16 | % | | 25.33 | % |
| Total portfolio loans | 6.89 | % | | 6.39 | % | | 6.65 | % | | 5.91 | % | | 7.19 | % |
| Securities | 1.96 | % | | 2.04 | % | | 2.10 | % | | 2.59 | % | | 2.85 | % |
| Federal funds sold | 0.23 | % | | 0.25 | % | | 0.24 | % | | 0.27 | % | | 0.25 | % |
| Yield on interest-earning assets | 5.63 | % | | 5.25 | % | | 5.32 | % | | 4.84 | % | | 5.90 | % |
| Interest-bearing deposits | 0.79 | % | | 0.84 | % | | 0.90 | % | | 1.01 | % | | 1.12 | % |
| Subordinated debt | 4.63 | % | | 5.43 | % | | 5.32 | % | | 5.26 | % | | 5.31 | % |
| Borrowed funds | 1.70 | % | | 1.76 | % | | 1.84 | % | | 1.94 | % | | 1.99 | % |
| Cost of paying liabilities | 1.01 | % | | 1.08 | % | | 1.12 | % | | 1.23 | % | | 1.36 | % |
| Net interest spread | 4.62 | % | | 4.17 | % | | 4.20 | % | | 3.61 | % | | 4.54 | % |
| Net interest rate margin | 4.81 | % | | 4.33 | % | | 4.35 | % | | 3.79 | % | | 4.75 | % |
| | | | | | | | | | |
| WEALTH MANAGEMENT | | | | | | | | | |
| Trust Assets under management | $ | 836,351 |
| | $ | 840,081 |
| | $ | 831,931 |
| | $ | 790,129 |
| | $ | 862,357 |
|
| Trust Assets under administration | 1,601,441 |
| | 1,666,943 |
| | 1,602,969 |
| | 1,439,947 |
| | 1,579,065 |
|
ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
RECONCILIATIONS OF U.S. GAAP FINANCIAL MEASURES
|
| | | | | | | | | | | | | | | | | | | |
| | At the Quarter Ended |
| (In thousands) | Jun 30
2012 | | Mar 31
2012 | | Dec 31
2011 | | Sep 30
2011 | | Jun 30
2011 |
| TIER 1 COMMON EQUITY TO RISK-WEIGHTED ASSETS |
| | | | | | | | | | |
| Shareholders' equity | $ | 255,888 |
| | $ | 246,016 |
| | $ | 239,565 |
| | $ | 234,471 |
| | $ | 228,861 |
|
| Less: Goodwill | (30,334 | ) | | (30,334 | ) | | (30,334 | ) | | (30,334 | ) | | (3,622 | ) |
| Less: Intangible assets | (8,310 | ) | | (8,795 | ) | | (9,285 | ) | | (9,471 | ) | | (1,791 | ) |
| Less: Unrealized gains | (6,140 | ) | | (4,744 | ) | | (3,602 | ) | | (4,718 | ) | | (3,994 | ) |
| Plus: Qualifying trust preferred securities | 80,100 |
| | 80,100 |
| | 79,874 |
| | 78,177 |
| | 76,306 |
|
| Other | 56 |
| | 57 |
| | 57 |
| | 59 |
| | 59 |
|
| Tier 1 capital | $ | 291,260 |
| | $ | 282,300 |
| | $ | 276,275 |
| | $ | 268,184 |
| | $ | 295,819 |
|
| Less: Preferred stock | (33,703 | ) | | (33,496 | ) | | (33,293 | ) | | (33,094 | ) | | (32,900 | ) |
| Less: Qualifying trust preferred securities | (80,100 | ) | | (80,100 | ) | | (79,874 | ) | | (78,177 | ) | | (76,306 | ) |
| Tier 1 common equity | $ | 177,457 |
| | $ | 168,704 |
| | $ | 163,108 |
| | $ | 156,913 |
| | $ | 186,613 |
|
| | | | | | | | | | |
| Total risk weighted assets determined in accordance with prescribed regulatory requirements | $ | 2,327,624 |
| | $ | 2,262,209 |
| | $ | 2,227,958 |
| | $ | 2,190,880 |
| | $ | 2,104,662 |
|
| | | | | | | | | | |
| Tier 1 common equity to risk weighted assets | 7.62 | % | | 7.46 | % | | 7.32 | % | | 7.16 | % | | 8.87 | % |
| | | | | | | | | | |
| SHAREHOLDERS' EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS |
| | | | | | | | | | |
| Shareholders' equity | $ | 255,888 |
| | $ | 246,016 |
| | $ | 239,565 |
| | $ | 234,471 |
| | $ | 228,861 |
|
| Less: Preferred stock | (33,703 | ) | | (33,496 | ) | | (33,293 | ) | | (33,094 | ) | | (32,900 | ) |
| Less: Goodwill | (30,334 | ) | | (30,334 | ) | | (30,334 | ) | | (30,334 | ) | | (3,622 | ) |
| Less: Intangible assets | (8,310 | ) | | (8,795 | ) | | (9,285 | ) | | (9,471 | ) | | (1,791 | ) |
| Tangible common equity | $ | 183,541 |
| | $ | 173,391 |
| | $ | 166,653 |
| | $ | 161,572 |
| | $ | 190,548 |
|
| | | | | | | | | | |
| Total assets | $ | 3,183,134 |
| | $ | 3,245,154 |
| | $ | 3,377,779 |
| | $ | 3,348,784 |
| | $ | 2,923,383 |
|
| Less: Goodwill | (30,334 | ) | | (30,334 | ) | | (30,334 | ) | | (30,334 | ) | | (3,622 | ) |
| Less: Intangible assets | (8,310 | ) | | (8,795 | ) | | (9,285 | ) | | (9,471 | ) | | (1,791 | ) |
| Tangible assets | $ | 3,144,490 |
| | $ | 3,206,025 |
| | $ | 3,338,160 |
| | $ | 3,308,979 |
| | $ | 2,917,970 |
|
| | | | | | | | | | |
| Tangible common equity to tangible assets | 5.84 | % | | 5.41 | % | | 4.99 | % | | 4.88 | % | | 6.53 | % |
