Exhibit 99.1
For more information, contact: | ||
Kevin Eichner (314) 725 5500 | ||
Frank Sanfilippo (314) 725 5500 | ||
Katie Hollar (816) 221 7500 |
ENTERPRISE FINANCIAL REACHES $2 BILLION IN COMBINED BANKING AND TRUST ASSETS
Strong Loan and Deposit Growth Continues
Wealth Management Revenue Grows 51.1%
St. Louis, July 22, 2004 – Enterprise Financial Services Corp (OTCBB: EFSC), the parent company of Enterprise Bank and Trust, reported second quarter net income of $2.0 million or $0.20 per fully diluted share and $3.5 million or $0.35 per fully diluted share for the six months ended June 30, 2004. For the six months ended June 30, 2003, net income was $3.7 million or $0.38 per fully diluted share. The second quarter earnings in 2003 of $2.6 million or $0.26 per fully diluted share included an after tax gain from the sale of three branches less related expenses of $1.6 million or $0.16 per fully diluted share.
Portfolio loans grew by $83 million or 10.6% since December 31, 2003 and ended the quarter at $867 million. This growth was funded by a $75 million increase in deposits or 9.4% for the same period. For the twelve month period ending June 30, 2004 portfolio loans grew by $131 million or 17.8%. Deposits increased $123 million or 16.4% during the same period. The net interest rate margin for the same period decreased slightly from 4.07% to 3.85% primarily due to a decrease in overall loan yields.
“We are delighted to announce that Enterprise has reached the $1 billion level in banking assets to augment the $1 billion in trust assets which was achieved last year,” said Kevin Eichner, president and CEO of Enterprise Financial. “This is a major milestone for our company, and we are pleased that our growth in our two core business lines continues to significantly outstrip that of the general marketplace.”
In the Company’s Wealth Management business segment, total revenue grew by $644,000 or 51.1% for the first six months of 2004 versus 2003. Assets under administration in Enterprise Trust were $1.19 billion at June 30, 2004 versus $1.02 billion at June 30, 2003, a 16.7% increase.
Provision for loan losses in the banking segment was $1,337,000 for the six months ended June 30, 2004 compared to $2,093,000 for the same period in 2003. The allowance for loan losses of $11.4 million at June 30, 2004 represents 1.32% of outstanding portfolio loans compared to 1.35% at December 31, 2003.
“Our strong growth, coupled with tight expense control, as non-interest expense grew only 1.9% for the first six months of 2004, is driving earnings per share growth rates at record levels. We are gratified by how well our results are tracking with our aggressive plans,” said Eichner.
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 June 30, 2004 and December 31, 2003 and consolidated statements of operations for the three and six months ended June 30, 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)
June 30, 2004 and December 31, 2003
(Dollars in thousands, except share data)
June 30, 2004 | December 31, 2003 | ||||||
Assets | |||||||
Cash and due from banks | $ | 31,790 | $ | 26,271 | |||
Federal funds sold | 12,396 | — | |||||
Interest-bearing deposits | 90 | 217 | |||||
Investments in debt and equity securities: | |||||||
Available for sale, at estimated fair value | 93,483 | 83,939 | |||||
Held to maturity, at amortized cost (estimated fair value of $9 at June 30, 2004 and $9 at December 31, 2003) | 9 | 10 | |||||
Total investments in debt and equity securities | 93,492 | 83,949 | |||||
Loans held for sale | 2,383 | 2,848 | |||||
Loans, less unearned loan fees | 866,814 | 783,878 | |||||
Less allowance for loan losses | 11,448 | 10,590 | |||||
Loans, net | 855,366 | 773,288 | |||||
Other real estate owned | 273 | — | |||||
Fixed assets, net | 7,067 | 7,318 | |||||
Accrued interest receivable | 3,878 | 3,279 | |||||
Goodwill | 1,938 | 1,938 | |||||
Prepaid expenses and other assets | 7,381 | 8,618 | |||||
Total assets | $ | 1,016,054 | $ | 907,726 | |||
Liabilities and Shareholders’ Equity | |||||||
Deposits: | |||||||
Demand | $ | 182,679 | $ | 164,952 | |||
Interest-bearing transaction accounts | 70,357 | 58,926 | |||||
Money market accounts | 385,594 | 371,583 | |||||
Savings | 4,290 | 4,123 | |||||
Certificates of deposit: | |||||||
$100,000 and over | 186,722 | 154,142 | |||||
Other | 41,371 | 42,674 | |||||
Total deposits | 871,013 | 796,400 | |||||
Subordinated debentures | 20,619 | 15,464 | |||||
Federal Home Loan Bank advances | 51,432 | 14,500 | |||||
Notes payable and other borrowings | 296 | 9,647 | |||||
Accrued interest payable | 1,446 | 1,150 | |||||
Accounts payable and accrued expenses | 3,863 | 5,177 | |||||
Total liabilities | 948,669 | 842,338 | |||||
Shareholders’ equity: | |||||||
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding 9,684,025 shares at June 30, 2004 and 9,618,482 shares at December 31, 2003 | 97 | 96 | |||||
Additional paid-in capital | 40,318 | 39,841 | |||||
Retained earnings | 27,862 | 24,832 | |||||
Accumulated other comprehensive income (loss) | (892 | ) | 619 | ||||
Total shareholders’ equity | 67,385 | 65,388 | |||||
Total liabilities and shareholders’ equity | $ | 1,016,054 | $ | 907,726 | |||
ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES
Consolidated Statements of Operations
(Dollars in thousands, except share data)
Three months ended June 30, | Six months ended June 30, | |||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||
Interest income: | ||||||||||||
Interest and fees on loans | $ | 11,058 | $ | 10,305 | $ | 21,515 | $ | 20,674 | ||||
Interest on debt and equity securities: | ||||||||||||
Taxable | 569 | 421 | 978 | 889 | ||||||||
Nontaxable | 10 | 4 | 20 | 5 | ||||||||
Interest on federal funds sold | 38 | 48 | 86 | 86 | ||||||||
Dividends on equity securities | 25 | 19 | 46 | 33 | ||||||||
Total interest income | 11,700 | 10,797 | 22,645 | 21,687 | ||||||||
Interest expense: | ||||||||||||
Interest-bearing transaction accounts | 58 | 49 | 97 | 101 | ||||||||
Money market accounts | 904 | 885 | 1,763 | 1,812 | ||||||||
Savings | 3 | 3 | 6 | 18 | ||||||||
Certificates of deposit: | ||||||||||||
$100,000 and over | 974 | 741 | 1,836 | 1,411 | ||||||||
Other | 255 | 377 | 519 | 939 | ||||||||
Subordinated debentures | 345 | 309 | 661 | 617 | ||||||||
Federal Home Loan Bank borrowings | 235 | 312 | 420 | 603 | ||||||||
Notes payable and other borrowings | 4 | 18 | 30 | 29 | ||||||||
Total interest expense | 2,778 | 2,694 | 5,332 | 5,530 | ||||||||
Net interest income | 8,922 | 8,103 | 17,313 | 16,157 | ||||||||
Provision for loan losses | 740 | 1,094 | 1,337 | 2,093 | ||||||||
Net interest income after provision for loan losses | 8,182 | 7,009 | 15,976 | 14,064 | ||||||||
Noninterest income: | ||||||||||||
Service charges on deposit accounts | 540 | 406 | 997 | 893 | ||||||||
Wealth Management income | 1,048 | 670 | 1,904 | 1,260 | ||||||||
Other service charges and fee income | 88 | 91 | 185 | 187 | ||||||||
Gain on sale of branches | — | 2,938 | — | 2,938 | ||||||||
Gain on sale of mortgage loans | 142 | 279 | 210 | 529 | ||||||||
Gain on sale of securities | — | — | 1 | 78 | ||||||||
Total noninterest income | 1,818 | 4,384 | 3,297 | 5,885 | ||||||||
Noninterest expense: | ||||||||||||
Compensation | 3,933 | 3,778 | 7,785 | 7,305 | ||||||||
Payroll taxes and employee benefits | 652 | 589 | 1,489 | 1,261 | ||||||||
Occupancy | 522 | 499 | 1,018 | 975 | ||||||||
Furniture and equipment | 176 | 233 | 358 | 454 | ||||||||
Data processing | 192 | 270 | 378 | 512 | ||||||||
Other | 1,652 | 1,901 | 2,971 | 3,518 | ||||||||
Total noninterest expense | 7,127 | 7,270 | 13,999 | 14,025 | ||||||||
Income before income tax expense | 2,873 | 4,123 | 5,274 | 5,924 | ||||||||
Income tax expense | 886 | 1,525 | 1,761 | 2,190 | ||||||||
Net income | $ | 1,987 | $ | 2,598 | $ | 3,513 | $ | 3,734 | ||||
Per share amounts: | ||||||||||||
Basic earnings per share | $ | 0.21 | $ | 0.27 | $ | 0.36 | $ | 0.39 | ||||
Basic weighted average common shares outstanding | 9,680,006 | 9,560,529 | 9,660,075 | 9,541,522 | ||||||||
Diluted earnings per share | $ | 0.20 | $ | 0.26 | $ | 0.35 | $ | 0.38 | ||||
Diluted weighted average common shares outstanding | 9,987,261 | 9,892,558 | 9,977,520 | 9,855,507 |