Exhibit 99.1
For more information, contact:
Kevin Eichner (314) 725 5500
Frank Sanfilippo (314) 725 5500
Katie Hollar (816) 221 7500
ENTERPRISE FINANCIAL REPORTS 34.5% INCREASE IN EARNINGS OVER
PREVIOUS YEAR
Trust Income Grows 43.5%
St. Louis, April 20, 2004 – Enterprise Financial Services Corp (OTCBB: EFSC), the parent company of Enterprise Bank and Trust reported net income of $1.5 million or $0.15 per fully diluted share for the three months ended March 31, 2004. For the three months ended March 31, 2003, net income was $1.1 million or $0.12 per fully diluted share. The reported earnings represent a 34.5% increase over the same quarter in 2003.
Portfolio loans grew by $119 million or 16.7% since March 31, 2003 and ended the quarter at $831 million. This growth was funded by a $120 million increase in deposits or 16.3% for the same period. Net interest income for the first quarter of 2004 was $8.4 million, a $336,000 or 4.2% increase over the same period last year. The net interest rate margin for the first quarter of 2004 was 3.88% compared to 4.08% in the same period last year.
“We are very pleased with our continued momentum,” said Kevin Eichner, president and CEO of Enterprise Financial. “Our growth is strong relative to our peers, and reflects the impact our talent is having in the marketplace. When we are able to grow at these rates while holding our non-interest expense at less than a 2% growth rate, it obviously bodes well for core earnings.”
In addition to its outstanding growth in its commercial banking business, the Company’s Wealth Management segment also enjoyed a very positive quarter. Trust income grew by $257,000 or 43.5% for the first three months of 2004 versus 2003. Assets under administration in Enterprise Trust were $1.17 billion at March 31, 2004 versus $986 million at March 31, 2003, an 18.2% increase. The Company also launched its Business Consulting and Wealth Products units in the first quarter to further enhance its Wealth Management offerings to its clients.
The provision for loan losses was $597,000 for the first quarter of 2004 compared to $999,000 for the same period in 2003. The allowance for loan losses of $10.69 million at March 31, 2004 represents 1.29% of outstanding portfolio loans, unchanged from March 31, 2003.
Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis and Kansas City, with a primary focus on serving the needs of privately held businesses, their owners and other success-minded individuals.
Please refer to Enterprise Financial’s consolidated balance sheets as of March 31, 2004 and 2003 and consolidated statements of operations for the three months ended March 31, 2004 and 2003 attached for more details.
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Readers should note that in addition to the historical information contained herein, this press release may contain 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. 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, exposure to local economic conditions, risks associated with rapid increase or decrease in prevailing interest rates and competition from banks and other financial institutions, as well as those in Enterprise Financial’s 2003 Annual Report on Form 10-K.
ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)
March 31, 2004 and 2003
(Dollars in thousands, except share data)
2004 | 2003 | |||||
Assets | ||||||
Cash and due from banks | $ | 25,417 | $ | 42,440 | ||
Federal funds sold | 41,750 | 30,828 | ||||
Interest-bearing deposits | 843 | 93 | ||||
Investments in debt and equity securities: | ||||||
Available for sale, at estimated fair value | 51,404 | 69,829 | ||||
Held to maturity, at amortized cost (estimated fair value of $9 at March 31, 2004 and $12 at March 31, 2003) | 9 | 12 | ||||
Total investments in debt and equity securities | 51,413 | 69,841 | ||||
Loans held for sale | 2,645 | 3,868 | ||||
Loans, less unearned loan fees | 830,948 | 712,154 | ||||
Less allowance for loan losses | 10,686 | 9,175 | ||||
Loans, net | 820,262 | 702,979 | ||||
Other real estate owned | 653 | 450 | ||||
Fixed assets, net | 7,222 | 7,427 | ||||
Accrued interest receivable | 2,820 | 3,656 | ||||
Goodwill | 1,938 | 2,087 | ||||
Assets held for sale | — | 28,633 | ||||
Prepaid expenses and other assets | 8,631 | 10,459 | ||||
Total assets | $ | 963,594 | $ | 902,761 | ||
Liabilities and Shareholders’ Equity | ||||||
Deposits: | ||||||
Demand | $ | 171,176 | $ | 165,465 | ||
Interest-bearing transaction accounts | 58,179 | 54,286 | ||||
Money market accounts | 388,757 | 347,500 | ||||
Savings | 4,260 | 3,673 | ||||
Certificates of deposit: | ||||||
$100,000 and over | 197,171 | 117,203 | ||||
Other | 41,098 | 52,053 | ||||
Total deposits | 860,641 | 740,180 | ||||
Subordinated debentures | 15,464 | 15,464 | ||||
Federal Home Loan Bank advances | 14,468 | 29,433 | ||||
Notes payable and other borrowings | 987 | 2,459 | ||||
Accrued interest payable | 1,021 | 1,269 | ||||
Liabilities held for sale | — | 48,862 | ||||
Accounts payable and accrued expenses | 3,857 | 4,941 | ||||
Total liabilities | 896,438 | 842,608 | ||||
Shareholders’ equity: | ||||||
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding 9,676,675 shares at March 31, 2004 and 9,538,416 shares at March 31, 2003 | 97 | 95 | ||||
Surplus | 40,233 | 38,867 | ||||
Retained earnings | 26,117 | 19,618 | ||||
Accumulated other comprehensive income | 709 | 1,573 | ||||
Total shareholders’ equity | 67,156 | 60,153 | ||||
Total liabilities and shareholders’ equity | $ | 963,594 | $ | 902,761 | ||
ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
Three Months Ended March 31, 2004 and 2003
(Dollars in thousands, except share data)
2004 | 2003 | |||||
Interest income: | ||||||
Interest and fees on loans | $ | 10,457 | $ | 10,369 | ||
Interest on debt and equity securities: | ||||||
Taxable | 409 | 467 | ||||
Nontaxable | 10 | — | ||||
Interest on federal funds sold | 48 | 38 | ||||
Dividends on equity securities | 20 | 24 | ||||
Total interest income | 10,944 | 10,898 | ||||
Interest expense: | ||||||
Interest-bearing transaction accounts | 39 | 52 | ||||
Money market accounts | 859 | 927 | ||||
Savings | 3 | 14 | ||||
Certificates of deposit: | ||||||
$100,000 and over | 861 | 668 | ||||
Other | 264 | 563 | ||||
Subordinated debentures | 317 | 318 | ||||
Federal Home Loan Bank borrowings | 185 | 290 | ||||
Notes payable and other borrowings | 26 | 11 | ||||
Total interest expense | 2,554 | 2,843 | ||||
Net interest income | 8,390 | 8,055 | ||||
Provision for loan losses | 597 | 999 | ||||
Net interest income after provision for loan losses | 7,793 | 7,056 | ||||
Noninterest income: | ||||||
Service charges on deposit accounts | 457 | 487 | ||||
Trust income | 847 | 590 | ||||
Other service charges and fee income | 107 | 97 | ||||
Gain on sale of mortgage loans | 68 | 251 | ||||
Gain on sale of securities | 1 | 78 | ||||
Total noninterest income | 1,480 | 1,503 | ||||
Noninterest expense: | ||||||
Compensation | 3,852 | 3,528 | ||||
Payroll taxes and employee benefits | 837 | 672 | ||||
Occupancy | 496 | 476 | ||||
Furniture and equipment | 182 | 221 | ||||
Data processing | 185 | 242 | ||||
Other | 1,320 | 1,619 | ||||
Total noninterest expense | 6,872 | 6,758 | ||||
Income before income tax expense | 2,401 | 1,801 | ||||
Income tax expense | 875 | 666 | ||||
Net income | $ | 1,526 | $ | 1,135 | ||
Per share amounts | ||||||
Basic earnings per share | $ | 0.16 | $ | 0.12 | ||
Basic weighted average common shares outstanding | 9,640,145 | 9,520,631 | ||||
Diluted earnings per share | $ | 0.15 | $ | 0.12 | ||
Diluted weighted average common shares outstanding | 9,942,143 | 9,825,620 |