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Enterprise Financial Reports Fourth Quarter and Full Year 2023 Results

Fourth Quarter Results

  • Net income of $44.5 million, $1.16 per diluted common share, or $1.21 per diluted common share when excluding $2.4 million FDIC special assessment1
  • Net interest margin (“NIM”) of 4.23%, quarterly decrease of 10 basis points
  • Net interest income of $140.7 million, quarterly decrease of $0.9 million
  • Total loans of $10.9 billion, quarterly increase of $267.3 million, or 10% annualized
  • Total deposits of $12.2 billion, quarterly increase of $266.5 million
  • Return on Average Assets (“ROAA”) of 1.23%, or 1.28% adjusted for FDIC special assessment1
  • Return on Average Tangible Common Equity (“ROATCE”)1 of 14.38%, or 14.98% adjusted for FDIC special assessment1
  • Tangible common equity to tangible assets1 of 8.96%
  • Tangible book value per share1 of $33.85, quarterly increase of 9%

2023 Results

  • Net income of $194.1 million, $5.07 per diluted common share, or $5.12 per diluted common share when excluding $2.4 million FDIC special assessment1
  • Net interest income of $562.6 million, increase of $88.7 million
  • Total loans increased $1.1 billion, or 12%
  • Total deposits increased $1.3 billion, or 12%
  • ROAA of 1.41%, or 1.42% adjusted for FDIC special assessment1
  • ROATCE1 of 16.25% or 16.40% adjusted for FDIC special assessment1
  • Tangible book value per share1 increased $5.18, or 18%

Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), commented, “I am pleased with how strong we finished 2023, although we unfortunately had an elevated level of charge-offs in the fourth quarter, with the largest charge-off attributable to a single agricultural relationship. This relationship had specific aspects that drove the loss that we believe is an isolated issue.”

Lally added, “While the charge-offs and related provision for credit losses reduced our earnings for the year, we achieved a 1.4% ROAA1 driven by a 10% increase in pre-provision net revenue ('PPNR')1. Our consistent marketing efforts and partnership with our customers resulted in a 12% increase in net loan growth, with the increase being primarily funded with core deposits. For the full year, we reported earnings per share ('EPS') of $5.07 and a 16.4% return on average tangible common equity1. As we look to 2024, we expect to continue to capitalize on opportunities to grow and strengthen the Company.”

Full-Year Highlights

For 2023, net income was $194.1 million, or $5.07 per diluted share, compared to $203.0 million, or $5.31 per diluted share, in 2022. Excluding the impact of the FDIC special assessment of $2.4 million, EPS was $5.12 for 2023. PPNR1 for 2023 was $284.8 million, compared to $258.9 million in 2022. Organic earning-asset growth and expansion of net interest income due to the increase in market interest rates were the primary contributors to the PPNR increase in 2023. Offsetting the increase in PPNR was a $37.2 million increase in the provision for credit losses in 2023 compared to 2022.

The Company’s asset sensitive balance sheet benefited from the increase in market interest rates during 2023. NIM expanded to 4.43% in 2023, from 3.89% in 2022. The increase in NIM and average interest-earning asset growth of $508.2 million resulted in total net interest income of $562.6 million in 2023, a 19% increase from $473.9 million in 2022.

Noninterest income was $68.7 million, an increase of 16% from $59.2 million in 2022. The increase was primarily due to higher volumes in tax credit income, private equity and community development income, and gains on the sale of SBA loans. Offsetting these amounts were a decrease in deposit services charges due to higher earnings credit rates, and a decrease in card services due to the full year impact of the Durbin Amendment. Total noninterest expense was $348.2 million in 2023, a 27% increase from $274.2 million in 2022. The increase was primarily from higher customer servicing deposit costs due to higher deposit balances and an increase in earnings credit rates, and an increase in compensation from a larger associate base, and annual merit increases. The core efficiency ratio2 was 53.4% in 2023, compared to 49.8% in 2022.

Nonperforming assets were 0.34% of total assets at the end of 2023, compared to 0.08% at the end of 2022. Net charge-offs were 0.37% of average loans in 2023, compared to 0.04% in 2022. The allowance for credit losses declined to 1.24% of total loans at the end of 2023, from 1.41% at the end of 2022. The decrease was primarily due to the charge-off of certain nonperforming loans and an improvement in forecasted economic factors. Excluding guaranteed portions of loans, the allowance to loans ratio was 1.35% and 1.56% at the end of 2023 and 2022, respectively. A provision for credit losses of $36.6 million was recorded in 2023 primarily due to net charge-offs in the year, compared to a benefit for credit losses of $0.6 million in 2022.

The Company maintained a strong liquidity position in 2023, with total deposits of $12.2 billion, a loan-to-deposit ratio of 89.4% and cash and investment securities of $2.9 billion. This compares to total deposits of $10.8 billion, a loan-to-deposit ratio of 89.9% and cash and investment securities of $2.6 billion at the end of 2022. Non-interest bearing deposits comprise 32.5% of total deposits at December 31, 2023, compared to 42.9% at the end of 2022. Excluding brokered certificates of deposits, core deposits as of December 31, 2023 totaled $11.7 billion, an increase of $983.4 million from the prior year.

Total shareholders’ equity was $1.7 billion and $1.5 billion as of December 31, 2023 and December 31, 2022, respectively. The increase was primarily due to net income of $194.1 million and an increase in accumulated other comprehensive income (“AOCI”) of $29.3 million. The change in AOCI was primarily due to an improvement in the fair value of available for sale investment securities due to a decline in longer-term market interest rates. The Company returned $37.4 million, or $1.00 per share, to common shareholders and $3.8 million, or $50.00 per share, to preferred shareholders in 2023.

Fourth Quarter Highlights

  • Earnings - Net income in the fourth quarter 2023 was $44.5 million, a decrease of $0.1 million compared to the linked quarter and a decrease of $15.5 million from the prior year quarter. EPS was $1.16 for the fourth quarter 2023, compared to $1.17 and $1.58 for the linked and prior year quarters, respectively. Excluding the impact of the FDIC special assessment of $2.4 million, EPS was $1.21 for the fourth quarter 2023.
  • PPNR - PPNR1 of $75.8 million in the fourth quarter 2023 increased $10.7 million and decreased $2.8 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to an increase in noninterest income, partially offset by an increase in noninterest expense. The decrease from the prior year quarter was primarily due to an increase in customer deposit servicing costs as a result of higher market interest rates.
  • Net interest income and NIM - Net interest income of $140.7 million for the fourth quarter 2023 decreased $0.9 million and increased $1.9 million from the linked and prior year quarters, respectively. NIM was 4.23% for the fourth quarter 2023, compared to 4.33% and 4.66% for the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income declined due to higher deposit interest expense, partially offset by higher average loan and investment balances and expanding yields on earning assets.
  • Noninterest income - Noninterest income of $25.5 million for the fourth quarter 2023 increased $13.4 million from the linked quarter and increased $8.6 million from the prior year quarter. The increase from the linked and prior year quarters was primarily due to an increase in tax credit income. Tax credit income improved due to higher volumes and from the impact on fair value from the decrease in market interest rates on projects carried at fair value.
  • Loans - Total loans increased $267.3 million from the linked quarter to $10.9 billion as of December 31, 2023. Loans grew 10% on an annualized basis, from the linked quarter and 12% for the year. Average loans totaled $10.7 billion for the fourth quarter 2023, compared to $10.5 billion and $9.4 billion for the linked and prior year quarters, respectively.
  • Asset quality - The allowance for credit losses to loans was 1.24% at December 31, 2023, compared to 1.34% at September 30, 2023 and 1.41% at December 31, 2022. Nonperforming assets to total assets was 0.34% at December 31, 2023, compared to 0.40% and 0.08% at September 30, 2023 and December 31, 2022, respectively. A provision for credit losses of $18.1 million was recorded in the fourth quarter 2023, compared to $8.0 million and $2.1 million for the linked and prior year quarters, respectively.
  • Deposits - Total deposits increased $266.5 million from the linked quarter to $12.2 billion as of December 31, 2023. Average deposits totaled $12.2 billion for the fourth quarter 2023, compared to $11.9 billion and $11.0 billion for the linked and prior year quarters, respectively. At December 31, 2023, noninterest-bearing deposit accounts represented 32.5% of total deposits, and the loan to deposit ratio was 89.4%.
  • Capital - Total shareholders’ equity was $1.7 billion and the tangible common equity to tangible assets ratio1 was 8.96% at December 31, 2023, compared to 8.43% at December 31, 2022. The tangible common equity to tangible assets ratio increased due to strong earnings growth and an increase in accumulated other comprehensive income from an improvement in the fair value of available-for-sale securities. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.2% and a total risk-based capital ratio of 13.2% as of December 31, 2023. The Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.3% and 14.2%, respectively, at December 31, 2023.



    The Company’s Board of Directors approved a quarterly dividend of $0.25 per common share, payable on March 29, 2024 to shareholders of record as of March 15, 2024. The Board of Directors also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) December 15, 2023 to (but excluding) March 15, 2024. The dividend will be payable on March 15, 2024 to shareholders of record on February 29, 2024.

1

ROATCE, tangible common equity to tangible assets, tangible book value per share, and PPNR are non-GAAP measures. EPS, ROAA and ROATCE when excluding FDIC special assessment are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables. 

2

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

Net Interest Income and NIM

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.

 

Quarter ended

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

($ in thousands)

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans1, 2

$

10,685,961

 

$

184,982

 

6.87

%

 

$

10,521,966

 

$

180,382

 

6.80

%

 

$

9,423,984

 

$

139,432

 

5.87

%

Securities2

 

2,276,915

 

 

18,385

 

3.20

 

 

 

2,302,850

 

 

18,076

 

3.11

 

 

 

2,204,211

 

 

16,191

 

2.91

 

Interest-earning deposits

 

420,762

 

 

5,631

 

5.31

 

 

 

335,771

 

 

4,509

 

5.33

 

 

 

367,100

 

 

3,097

 

3.35

 

Total interest-earning assets

 

13,383,638

 

 

208,998

 

6.20

 

 

 

13,160,587

 

 

202,967

 

6.12

 

 

 

11,995,295

 

 

158,720

 

5.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

949,166

 

 

 

 

 

 

908,273

 

 

 

 

 

 

991,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

14,332,804

 

 

 

 

 

$

14,068,860

 

 

 

 

 

$

12,986,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

$

2,844,847

 

$

17,248

 

2.41

%

 

$

2,672,084

 

$

13,701

 

2.03

%

 

$

2,242,268

 

$

4,136

 

0.73

%

Money market accounts

 

3,342,979

 

 

30,579

 

3.63

 

 

 

3,079,221

 

 

26,427

 

3.40

 

 

 

2,696,417

 

 

9,509

 

1.40

 

Savings accounts

 

609,645

 

 

268

 

0.17

 

 

 

646,187

 

 

250

 

0.15

 

 

 

775,488

 

 

100

 

0.05

 

Certificates of deposit

 

1,373,808

 

 

14,241

 

4.11

 

 

 

1,519,119

 

 

14,976

 

3.91

 

 

 

524,938

 

 

1,017

 

0.77

 

Total interest-bearing deposits

 

8,171,279

 

 

62,336

 

3.03

 

 

 

7,916,611

 

 

55,354

 

2.77

 

 

 

6,239,111

 

 

14,762

 

0.94

 

Subordinated debentures and notes

 

155,907

 

 

2,475

 

6.30

 

 

 

155,769

 

 

2,466

 

6.28

 

 

 

155,359

 

 

2,376

 

6.07

 

FHLB advances

 

 

 

 

 

 

 

10,326

 

 

141

 

5.42

 

 

 

8,864

 

 

104

 

4.65

 

Securities sold under agreements to repurchase

 

150,827

 

 

1,226

 

3.22

 

 

 

146,893

 

 

969

 

2.61

 

 

 

182,362

 

 

282

 

0.61

 

Other borrowings

 

49,013

 

 

314

 

2.54

 

 

 

50,571

 

 

337

 

2.66

 

 

 

26,993

 

 

378

 

5.56

 

Total interest-bearing liabilities

 

8,527,026

 

 

66,351

 

3.09

 

 

 

8,280,170

 

 

59,267

 

2.84

 

 

 

6,612,689

 

 

17,902

 

1.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

3,992,067

 

 

 

 

 

 

4,005,923

 

 

 

 

 

 

4,763,503

 

 

 

 

Other liabilities

 

160,829

 

 

 

 

 

 

134,162

 

 

 

 

 

 

119,784

 

 

 

 

Total liabilities

 

12,679,922

 

 

 

 

 

 

12,420,255

 

 

 

 

 

 

11,495,976

 

 

 

 

Shareholders' equity

 

1,652,882

 

 

 

 

 

 

1,648,605

 

 

 

 

 

 

1,490,592

 

 

 

 

Total liabilities and shareholders' equity

$

14,332,804

 

 

 

 

 

$

14,068,860

 

 

 

 

 

$

12,986,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net interest income

 

 

$

142,647

 

 

 

 

 

$

143,700

 

 

 

 

 

$

140,818

 

 

Net interest margin

 

 

 

 

4.23

%

 

 

 

 

 

4.33

%

 

 

 

 

 

4.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Average balances include nonaccrual loans. Interest income includes loan fees of $3.1 million, $3.3 million, and $3.7 million for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $1.9 million, $2.1 million, and $2.0 million for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively.

Net interest income for the fourth quarter was $140.7 million, a decrease of $0.9 million from the linked quarter and an increase of $1.9 million from the prior year period. Net interest income on a tax equivalent basis was $142.6 million, $143.7 million, and $140.8 million for the current, linked and prior year quarters, respectively. The decrease from the linked quarter was primarily due to the impact of rising rates and continued remixing into higher cost categories on the deposit portfolio. The increase from the prior year quarter reflects the benefit of higher market interest rates on the Company’s asset sensitive balance sheet combined with organic growth.

Interest income increased $6.2 million during the quarter primarily due to a $4.6 million increase in loan interest income and a $1.1 million increase in interest income on cash accounts. Interest on loans benefited from a 7 basis point increase in average yield and a $164.0 million increase in average loan balances, compared to the linked quarter. The average interest rate of new loan originations in the fourth quarter 2023 was 7.95%. Interest on cash accounts increased due to a $85.0 million increase in average balances.

Interest expense increased $7.1 million in the fourth quarter 2023 primarily due to increased deposit interest expense. The increase in deposit interest expense reflects higher rates paid on deposits as well as successful marketing efforts that increased average deposits. The average cost of interest-bearing deposits was 3.03%, an increase of 26 basis points compared to the linked quarter. The total cost of deposits, including noninterest-bearing demand accounts, was 2.03% during the fourth quarter 2023, compared to 1.84% in the linked quarter.

NIM, on a tax equivalent basis, was 4.23% in the fourth quarter 2023, a decrease of 10 basis points from the linked quarter and a decrease of 43 basis points from the prior year quarter. For the month of December 2023, the loan portfolio yield was 6.92% and the cost of total deposits was 2.07%.

Investments

 

Quarter ended

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

($ in thousands)

Carrying

Value

 

Net

Unrealized

Loss

 

Carrying Value

 

Net

Unrealized

Loss

 

Carrying

Value

 

Net

Unrealized

Loss

Available-for-sale (AFS)

$

1,618,273

 

$

(150,861

)

 

$

1,487,104

 

$

(235,013

)

 

$

1,535,807

 

$

(193,247

)

Held-to-maturity (HTM)

 

750,434

 

 

(54,572

)

 

 

730,655

 

 

(108,780

)

 

 

709,915

 

 

(82,133

)

Total

$

2,368,707

 

$

(205,433

)

 

$

2,217,759

 

$

(343,793

)

 

$

2,245,722

 

$

(275,380

)

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities totaled $2.4 billion at December 31, 2023, an increase of $150.9 million from the linked quarter. The increase was primarily due to a $84.2 million increase in the fair value of available-for-sale securities due to a decline in longer-term rates in the quarter. Investment purchases in the fourth quarter 2023 had a weighted average, tax equivalent yield of 5.4%.

The average duration of the investment portfolio was approximately 6 years at December 31, 2023. The Company utilizes the investment portfolio to lengthen the overall duration of the balance sheet. The expected cash flow from pay downs, maturities and interest over the next 12 months is approximately $325 million. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities was 8.67% at December 31, 2023, compared to 7.91% at September 30, 2023.

Loans

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

 

Quarter ended

($ in thousands)

December 31,

2023

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

C&I

$

2,186,203

 

 

$

2,020,303

 

 

$

2,029,370

 

 

$

2,005,539

 

 

$

1,904,654

 

CRE investor owned

 

2,291,660

 

 

 

2,260,220

 

 

 

2,290,701

 

 

 

2,239,932

 

 

 

2,176,424

 

CRE owner occupied

 

1,262,264

 

 

 

1,255,885

 

 

 

1,208,675

 

 

 

1,173,985

 

 

 

1,174,094

 

SBA loans*

 

1,281,632

 

 

 

1,309,497

 

 

 

1,327,667

 

 

 

1,315,732

 

 

 

1,312,378

 

Sponsor finance*

 

872,264

 

 

 

888,000

 

 

 

879,491

 

 

 

677,529

 

 

 

635,061

 

Life insurance premium finance*

 

956,162

 

 

 

928,486

 

 

 

912,274

 

 

 

859,910

 

 

 

817,115

 

Tax credits*

 

734,594

 

 

 

683,580

 

 

 

609,137

 

 

 

547,513

 

 

 

559,605

 

Residential real estate

 

359,957

 

 

 

364,618

 

 

 

354,588

 

 

 

348,726

 

 

 

379,924

 

Construction and land development

 

670,567

 

 

 

639,555

 

 

 

599,375

 

 

 

590,509

 

 

 

534,753

 

Other

 

268,815

 

 

 

266,676

 

 

 

301,345

 

 

 

252,543

 

 

 

243,130

 

Total loans

$

10,884,118

 

 

$

10,616,820

 

 

$

10,512,623

 

 

$

10,011,918

 

 

$

9,737,138

 

 

 

 

 

 

 

 

 

 

 

Total loan yield

 

6.87

%

 

 

6.80

%

 

 

6.64

%

 

 

6.33

%

 

 

5.87

%

Variable interest rate loans to total loans

 

61

%

 

 

61

%

 

 

62

%

 

 

63

%

 

 

63

%

 

*Specialty loan category

Loans totaled $10.9 billion at December 31, 2023, increasing $267.3 million, or 10% on an annualized basis, from the linked quarter. The increase was driven primarily by a C&I increase of $165.9 million, a CRE and construction increase of $68.8 million and a specialty lending increase of $35.1 million. Average line utilization was approximately 42% for the quarter ended December 31, 2023, compared to 41% for both 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,

2023

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

Nonperforming loans*

$

43,728

 

 

$

48,932

 

 

$

16,112

 

 

$

11,972

 

 

$

9,981

 

Other

 

5,736

 

 

 

6,933

 

 

 

 

 

 

250

 

 

 

269

 

Nonperforming assets*

$

49,464

 

 

$

55,865

 

 

$

16,112

 

 

$

12,222

 

 

$

10,250

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

0.40

%

 

 

0.46

%

 

 

0.15

%

 

 

0.12

%

 

 

0.10

%

Nonperforming assets to total assets

 

0.34

%

 

 

0.40

%

 

 

0.12

%

 

 

0.09

%

 

 

0.08

%

Allowance for credit losses to loans

 

1.24

%

 

 

1.34

%

 

 

1.34

%

 

 

1.38

%

 

 

1.41

%

Net charge-offs (recoveries)

$

28,479

 

 

$

6,856

 

 

$

2,973

 

 

$

(264

)

 

$

2,075

 

 

 

 

 

 

 

 

 

 

 

*Guaranteed balances excluded

$

10,682

 

 

$

5,974

 

 

$

6,666

 

 

$

6,835

 

 

$

6,708

 

Nonperforming assets decreased $6.4 million during the fourth quarter 2023 and increased $39.2 million from the prior year quarter. The decrease from the linked quarter was primarily due to a $5.2 million reduction in nonperforming loans. In the fourth quarter 2023, $32.2 million of new loans moved into nonperforming status, $24.4 million of which were charged-off in the quarter. The bulk of the charged-off amount was related to two relationships, one in the agricultural portfolio that surfaced late in the quarter and another to a commercial real estate developer. The agricultural and commercial real estate developer relationships totaled $16.4 million and $10.0 million, respectively, of which $13.0 million and $10.0 million, respectively, were charged-off in the fourth quarter 2023. The increase in nonperforming loans from the prior year quarter was primarily due to a $30.4 million increase in real estate loans and a $3.3 million increase in C&I loans. Net charge-offs totaled 37 basis points of average loans in 2023, compared to 4 basis points in 2022.

The $43.7 million in nonperforming loans at December 31, 2023 consists primarily of 8 relationships representing 81% of total nonperforming loans that each have a balance greater than $1 million.

The provision for credit losses totaled $18.1 million in the fourth quarter 2023, compared to $8.0 million and $2.1 million in the linked and prior year quarters, respectively. The provision for credit losses in the fourth quarter primarily relates to charge-offs and loan growth, partially offset by an improvement in the economic forecast.

The allowance for credit losses to loans was 1.24% at December 31, 2023, a decrease of 10 basis points from the linked quarter.

Deposits

The following table presents deposits broken out by type for the most recent five quarters:

 

Quarter ended

($ in thousands)

December 31,

2023

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

Noninterest-bearing demand accounts

$

3,958,743

 

 

$

3,852,486

 

 

$

3,880,561

 

 

$

4,192,523

 

 

$

4,642,732

 

Interest-bearing demand accounts

 

2,950,259

 

 

 

2,749,598

 

 

 

2,629,339

 

 

 

2,395,901

 

 

 

2,256,295

 

Money market and savings accounts

 

3,994,455

 

 

 

3,837,145

 

 

 

3,577,856

 

 

 

3,672,539

 

 

 

3,399,415

 

Brokered certificates of deposit

 

482,759

 

 

 

695,551

 

 

 

893,808

 

 

 

369,505

 

 

 

118,968

 

Other certificates of deposit

 

790,155

 

 

 

775,127

 

 

 

638,296

 

 

 

524,168

 

 

 

411,740

 

Total deposit portfolio

$

12,176,371

 

 

$

11,909,907

 

 

$

11,619,860

 

 

$

11,154,636

 

 

$

10,829,150

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits to total deposits

 

32.5

%

 

 

32.3

%

 

 

33.4

%

 

 

37.6

%

 

 

42.9

%

Total costs of deposits

 

2.03

%

 

 

1.84

%

 

 

1.46

%

 

 

0.92

%

 

 

0.53

%

Total deposits at December 31, 2023 were $12.2 billion, an increase of $266.5 million and $1.3 billion from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, deposits increased $479.3 million and $983.4 million from the linked and prior year quarters, respectively. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.2 billion at December 31, 2023, compared to $1.1 billion at September 30, 2023.

Total estimated insured deposits, which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled $8.3 billion, or 69% of total deposits, at the end of December 31, 2023, compared to $8.5 billion, or 71% of total deposits, in the linked quarter.

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,

2023

 

September 30,

2023

 

Increase (decrease)

 

December 31,

2022

 

Increase (decrease)

Deposit service charges

 

4,334

 

 

4,187

 

 

$

147

 

 

4

%

 

$

4,463

 

$

(129

)

 

(3

)%

Wealth management revenue

 

2,428

 

 

2,614

 

 

 

(186

)

 

(7

)%

 

 

2,423

 

 

5

 

 

%

Card services revenue

 

2,666

 

 

2,560

 

 

 

106

 

 

4

%

 

 

2,345

 

 

321

 

 

14

%

Tax credit income (loss)

 

9,688

 

 

(2,673

)

 

 

12,361

 

 

462

%

 

 

2,389

 

 

7,299

 

 

306

%

Other income

 

6,336

 

 

5,397

 

 

 

939

 

 

17

%

 

 

5,253

 

 

1,083

 

 

21

%

Total noninterest income

$

25,452

 

$

12,085

 

 

$

13,367

 

 

111

%

 

$

16,873

 

$

8,579

 

 

51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income for the fourth quarter 2023 was $25.5 million, an increase of $13.4 million from the linked quarter and an increase of $8.6 million from the prior year quarter. The increase from both the linked and prior year quarters was primarily due to an increase in tax credit income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The discount rate used in the fair value determination is the 10-year SOFR swap rate, which decreased approximately 80 basis points in the fourth quarter.

The following table presents a comparative summary of the major components of other income for the periods indicated:

 

Linked quarter comparison

 

Prior year comparison

 

Quarter ended

 

Quarter ended

($ in thousands)

December 31,

2023

 

September 30,

2023

 

Increase (decrease)

 

December 31,

2022

 

Increase (decrease)

BOLI

$

1,279

 

$

822

 

$

457

 

 

56

%

 

$

773

 

$

506

 

 

65

%

Community development investments

 

1,027

 

 

338

 

 

689

 

 

204

%

 

 

2,775

 

 

(1,748

)

 

(63

)%

Private equity fund distributions

 

725

 

 

181

 

 

544

 

 

301

%

 

 

433

 

 

292

 

 

67

%

Servicing fees

 

774

 

 

701

 

 

73

 

 

10

%

 

 

181

 

 

593

 

 

328

%

Swap fees

 

163

 

 

54

 

 

109

 

 

202

%

 

 

189

 

 

(26

)

 

(14

)%

Gain on SBA loan sales

 

 

 

1,514

 

 

(1,514

)

 

(100

)%

 

 

 

 

 

 

%

Miscellaneous income

 

2,368

 

 

1,787

 

 

581

 

 

33

%

 

 

902

 

 

1,466

 

 

163

%

Total other income

$

6,336

 

$

5,397

 

$

939

 

 

17

%

 

$

5,253

 

$

1,083

 

 

21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The increase in bank-owned life insurance income in the fourth quarter 2023 compared to the linked and prior year quarters was related to a policy benefit payment. While a small portfolio of SBA loans was sold in the linked quarter, no loans were sold in the fourth quarter 2023. However, $11 million of investment securities were sold in the fourth quarter 2023 resulting in a gain of $0.2 million that is included in miscellaneous income.

Noninterest Expense

The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:

 

Linked quarter comparison

 

Prior year comparison

 

Quarter ended

 

Quarter ended

($ in thousands)

December 31,

2023

 

September 30,

2023

 

Increase (decrease)

 

December 31,

2022

 

Increase (decrease)

Employee compensation and benefits

$

39,651

 

$

40,771

 

$

(1,120

)

 

(3

)%

 

$

38,175

 

$

1,476

 

4

%

Occupancy

 

4,313

 

 

4,198

 

 

115

 

 

3

%

 

 

4,248

 

 

65

 

2

%

Deposit costs

 

21,606

 

 

20,987

 

 

619

 

 

3

%

 

 

13,256

 

 

8,350

 

63

%

FDIC special assessment

 

2,412

 

 

 

 

2,412

 

 

%

 

 

 

 

2,412

 

%

Other expense

 

24,621

 

 

22,688

 

 

1,933

 

 

9

%

 

 

21,470

 

 

3,151

 

15

%

Total noninterest expense

$

92,603

 

$

88,644

 

$

3,959

 

 

4

%

 

$

77,149

 

$

15,454

 

20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense was $92.6 million for the fourth quarter 2023, a $4.0 million increase from the linked quarter, and a $15.5 million increase from the prior year quarter. Included in noninterest expense in the fourth quarter 2023 was an assessment of $2.4 million from the FDIC to recover losses in the Deposit Insurance Fund related to the 2023 bank failures. Employee compensation and benefits decreased $1.1 million from the linked quarter primarily due to lower performance-based incentive accruals and a reduction in accrued PTO from vacation usage. Deposit costs increased $0.6 million from the linked quarter, primarily due to growth in average balances that receive an earnings credit rate. Other expense increased due to higher OREO and loan workout expenses, along with an increase in charitable contributions and data processing expenses.

The increase in noninterest expense of $15.5 million from the prior year quarter was primarily due to an $8.4 million increase in variable deposit costs, an increase in the associate base, merit increases throughout 2022 and 2023, and the FDIC special assessment.

For the fourth quarter 2023, the Company’s core efficiency ratio2 was 53.1% for the quarter ended December 31, 2023, compared to 56.2% for the linked quarter and 48.1% for the prior year quarter.

Income Taxes

The Company’s effective tax rate was 19.8% in the fourth quarter 2023, compared to 21.7% and 21.5% in the linked and prior year quarters, respectively. In conjunction with the completion of the 2022 tax returns in the fourth quarter 2023, the effective tax rate was decreased due to a lower state tax apportionment. The anticipated effective tax rate for 2024 is approximately 21%.

Capital

The following table presents total equity and various EFSC capital ratios for the most recent five quarters:

 

Quarter ended

Percent

December 31,

2023*

 

September 30,

2023

 

June 30,

2023

 

March 31,

2023

 

December 31,

2022

Shareholders’ equity

$

1,716,068

 

 

$

1,611,880

 

 

$

1,618,233

 

 

$

1,592,820

 

 

$

1,522,263

 

Total risk-based capital to risk-weighted assets

 

14.2

%

 

 

14.1

%

 

 

14.1

%

 

 

14.3

%

 

 

14.2

%

Tier 1 capital to risk-weighted assets

 

12.7

%

 

 

12.6

%

 

 

12.5

%

 

 

12.6

%

 

 

12.6

%

Common equity tier 1 capital to risk-weighted assets

 

11.3

%

 

 

11.2

%

 

 

11.1

%

 

 

11.2

%

 

 

11.1

%

Leverage ratio

 

11.0

%

 

 

10.9

%

 

 

11.0

%

 

 

11.1

%

 

 

10.9

%

Tangible common equity to tangible assets

 

8.96

%

 

 

8.51

%

 

 

8.65

%

 

 

8.81

%

 

 

8.43

%

 

 

 

 

 

 

 

 

 

 

*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Total equity was $1.7 billion at December 31, 2023, an increase of $104.2 million from the linked quarter. The increase from the linked quarter was primarily due to the current quarter’s net income of $44.5 million and a $66.8 million increase in accumulated other comprehensive income due to a net fair value increase in the Company’s fixed-rate, available-for-sale investment portfolio. Offsetting these increases were $10.3 million in common and preferred dividends. The Company’s tangible common book value per share was $33.85 at December 31, 2023, compared to $31.06 and $28.67 in the linked and prior year quarters, respectively.

The Company’s regulatory capital ratios continue to exceed the “well-capitalized” regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

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, ROACE, ROATCE, ROAA, PPNR return on average assets (“PPNR ROAA”), core efficiency ratio, the tangible common equity ratio, and tangible book value per common share, in this release that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

The Company considers its tangible common equity, PPNR, ROACE, ROATCE, ROAA, PPNR ROAA, core efficiency ratio, the tangible common equity ratio, and tangible book value per common share, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as the FDIC special assessment, merger-related expenses, facilities charges, and the gain or loss on sale of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.

The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.

Conference Call and Webcast Information

The Company will host a conference call and webcast at 10:00 a.m. Central Time on Tuesday, January 23, 2024. During the call, management will review the fourth quarter 2023 results and related matters. This press release as well as a related slide presentation will be accessible on the Company’s website at www.enterprisebank.com under “Investor Relations” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-888-330-2413 (Conference ID 70045, press # to reach an operator). We encourage participants to pre-register for the conference call using the following link:

https://bit.ly/EFSC4Q2023EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.

About Enterprise Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $14.5 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, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.

Enterprise Financial Services Corp’s common stock is traded on the Nasdaq Stock Market under the symbol “EFSC.” Please visit our website at www.enterprisebank.com to see our regularly posted material information.

Forward-looking Statements

Readers should note that, in addition to the historical information contained herein, this press release contains “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, shareholder value creation and the impact of acquisitions.

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, as well as credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), U.S. fiscal debt, budget and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase out of LIBOR, natural disasters, terrorist activities, war and geopolitical matters (including the war in Israel and potential for a broader regional conflict and the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

For any forward-looking statements made in this press release or in any documents, EFSC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, EFSC disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made.

 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited)
 

 

 

Quarter ended

 

Year ended

(in thousands, except per share data)

Dec 31,

2023

 

Sep 30,

2023

 

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Dec 31,

2023

 

Dec 31,

2022

EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

140,732

 

 

$

141,639

 

 

$

140,692

 

 

$

139,529

 

 

$

138,835

 

 

$

562,592

 

 

$

473,903

 

Provision (benefit) for credit losses

 

18,053

 

 

 

8,030

 

 

 

6,339

 

 

 

4,183

 

 

 

2,123

 

 

 

36,605

 

 

 

(611

)

Noninterest income

 

25,452

 

 

 

12,085

 

 

 

14,290

 

 

 

16,898

 

 

 

16,873

 

 

 

68,725

 

 

 

59,162

 

Noninterest expense

 

92,603

 

 

 

88,644

 

 

 

85,956

 

 

 

80,983

 

 

 

77,149

 

 

 

348,186

 

 

 

274,216

 

Income before income tax expense

 

55,528

 

 

 

57,050

 

 

 

62,687

 

 

 

71,261

 

 

 

76,436

 

 

 

246,526

 

 

 

259,460

 

Income tax expense

 

10,999

 

 

 

12,385

 

 

 

13,560

 

 

 

15,523

 

 

 

16,435

 

 

 

52,467

 

 

 

56,417

 

Net income

 

44,529

 

 

 

44,665

 

 

 

49,127

 

 

 

55,738

 

 

 

60,001

 

 

 

194,059

 

 

 

203,043

 

Preferred stock dividends

 

937

 

 

 

938

 

 

 

937

 

 

 

938

 

 

 

937

 

 

$

3,750

 

 

$

4,041

 

Net income available to common shareholders

$

43,592

 

 

$

43,727

 

 

$

48,190

 

 

$

54,800

 

 

$

59,064

 

 

$

190,309

 

 

$

199,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

$

1.16

 

 

$

1.17

 

 

$

1.29

 

 

$

1.46

 

 

$

1.58

 

 

$

5.07

 

 

$

5.31

 

Return on average assets1

 

1.28

%

 

 

1.26

%

 

 

1.44

%

 

 

1.72

%

 

 

1.83

%

 

 

1.42

%

 

 

1.52

%

Return on average common equity1

 

11.40

%

 

 

11.00

%

 

 

12.48

%

 

 

14.85

%

 

 

16.52

%

 

 

12.39

%

 

 

13.95

%

ROATCE1

 

14.98

%

 

 

14.49

%

 

 

16.53

%

 

 

19.93

%

 

 

22.62

%

 

 

16.40

%

 

 

19.10

%

Net interest margin (tax equivalent)

 

4.23

%

 

 

4.33

%

 

 

4.49

%

 

 

4.71

%

 

 

4.66

%

 

 

4.43

%

 

 

3.89

%

Efficiency ratio

 

55.72

%

 

 

57.66

%

 

 

55.46

%

 

 

51.77

%

 

 

49.55

%

 

 

55.15

%

 

 

51.44

%

Core efficiency ratio1

 

53.06

%

 

 

56.18

%

 

 

54.04

%

 

 

50.47

%

 

 

48.10

%

 

 

53.42

%

 

 

49.77

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

$

14,518,590

 

 

$

14,025,042

 

 

$

13,871,154

 

 

$

13,325,982

 

 

$

13,054,172

 

 

 

 

 

Average assets

$

14,332,804

 

 

$

14,068,860

 

 

$

13,671,985

 

 

$

13,131,195

 

 

$

12,986,568

 

 

$

13,805,236

 

 

$

13,319,624

 

Period end common shares outstanding

 

37,416

 

 

 

37,385

 

 

 

37,359

 

 

 

37,311

 

 

 

37,253

 

 

 

 

 

Dividends per common share

$

0.25

 

 

$

0.25

 

 

$

0.25

 

 

$

0.25

 

 

$

0.24

 

 

$

1.00

 

 

$

0.90

 

Tangible book value per common share1

$

33.85

 

 

$

31.06

 

 

$

31.23

 

 

$

30.55

 

 

$

28.67

 

 

 

 

 

Tangible common equity to tangible assets1

 

8.96

%

 

 

8.51

%

 

 

8.65

%

 

 

8.81

%

 

 

8.43

%

 

 

 

 

Total risk-based capital to risk-weighted assets2

 

14.2

%

 

 

14.1

%

 

 

14.1

%

 

 

14.3

%

 

 

14.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2 Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
 

 

 

Quarter ended

 

Year ended

($ in thousands, except per share data)

Dec 31,

2023

 

Sep 30,

2023

 

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Dec 31,

2023

 

Dec 31,

2022

INCOME STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

$

207,083

 

$

200,906

 

 

$

187,897

 

$

169,033

 

$

156,737

 

$

764,919

 

$

515,082

 

Interest expense

 

66,351

 

 

59,267

 

 

 

47,205

 

 

29,504

 

 

17,902

 

 

202,327

 

 

41,179

 

Net interest income

 

140,732

 

 

141,639

 

 

 

140,692

 

 

139,529

 

 

138,835

 

 

562,592

 

 

473,903

 

Provision (benefit) for credit losses

 

18,053

 

 

8,030

 

 

 

6,339

 

 

4,183

 

 

2,123

 

 

36,605

 

 

(611

)

Net interest income after provision (benefit) for credit losses

 

122,679

 

 

133,609

 

 

 

134,353

 

 

135,346

 

 

136,712

 

 

525,987

 

 

474,514

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit service charges

 

4,334

 

 

4,187

 

 

 

3,910

 

 

4,128

 

 

4,463

 

 

16,559

 

 

18,326

 

Wealth management revenue

 

2,428

 

 

2,614

 

 

 

2,472

 

 

2,516

 

 

2,423

 

 

10,030

 

 

10,010

 

Card services revenue

 

2,666

 

 

2,560

 

 

 

2,464

 

 

2,338

 

 

2,345

 

 

10,028

 

 

11,551

 

Tax credit income (loss)

 

9,688

 

 

(2,673

)

 

 

368

 

 

1,813

 

 

2,389

 

 

9,196

 

 

2,558

 

Other income

 

6,336

 

 

5,397

 

 

 

5,076

 

 

6,103

 

 

5,253

 

 

22,912

 

 

16,717

 

Total noninterest income

 

25,452

 

 

12,085

 

 

 

14,290

 

 

16,898

 

 

16,873

 

 

68,725

 

 

59,162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

39,651

 

 

40,771

 

 

 

41,641

 

 

42,503

 

 

38,175

 

 

164,566

 

 

147,029

 

Occupancy

 

4,313

 

 

4,198

 

 

 

3,954

 

 

4,061

 

 

4,248

 

 

16,526

 

 

17,640

 

Deposit costs

 

21,606

 

 

20,987

 

 

 

16,980

 

 

12,720

 

 

13,256

 

 

72,293

 

 

31,082

 

FDIC special assessment

 

2,412

 

 

 

 

 

 

 

 

 

 

 

2,412

 

 

 

Other expense

 

24,621

 

 

22,688

 

 

 

23,381

 

 

21,699

 

 

21,470

 

 

92,389

 

 

78,465

 

Total noninterest expense

 

92,603

 

 

88,644

 

 

 

85,956

 

 

80,983

 

 

77,149

 

 

348,186

 

 

274,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

55,528

 

 

57,050

 

 

 

62,687

 

 

71,261

 

 

76,436

 

 

246,526

 

 

259,460

 

Income tax expense

 

10,999

 

 

12,385

 

 

 

13,560

 

 

15,523

 

 

16,435

 

 

52,467

 

 

56,417

 

Net income

$

44,529

 

$

44,665

 

 

$

49,127

 

$

55,738

 

$

60,001

 

$

194,059

 

$

203,043

 

Preferred stock dividends

 

937

 

 

938

 

 

 

937

 

 

938

 

 

937

 

 

3,750

 

 

4,041

 

Net income available to common shareholders

$

43,592

 

$

43,727

 

 

$

48,190

 

$

54,800

 

$

59,064

 

$

190,309

 

$

199,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

1.16

 

$

1.17

 

 

$

1.29

 

$

1.47

 

$

1.59

 

$

5.09

 

$

5.32

 

Diluted earnings per common share

$

1.16

 

$

1.17

 

 

$

1.29

 

$

1.46

 

$

1.58

 

$

5.07

 

$

5.31

 

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
 

 

 

Quarter ended

($ in thousands)

Dec 31,

2023

 

Sep 30,

2023

 

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

193,275

 

 

$

190,806

 

 

$

202,702

 

 

$

210,813

 

 

$

229,580

 

Interest-earning deposits

 

243,610

 

 

 

184,245

 

 

 

125,328

 

 

 

81,241

 

 

 

69,808

 

Debt and equity investments

 

2,434,902

 

 

 

2,279,578

 

 

 

2,340,821

 

 

 

2,338,746

 

 

 

2,309,512

 

Loans held for sale

 

359

 

 

 

212

 

 

 

551

 

 

 

261

 

 

 

1,228

 

 

 

 

 

 

 

 

 

 

 

Loans

 

10,884,118

 

 

 

10,616,820

 

 

 

10,512,623

 

 

 

10,011,918

 

 

 

9,737,138

 

Allowance for credit losses

 

(134,771

)

 

 

(142,133

)

 

 

(141,319

)

 

 

(138,295

)

 

 

(136,932

)

Total loans, net

 

10,749,347

 

 

 

10,474,687

 

 

 

10,371,304

 

 

 

9,873,623

 

 

 

9,600,206

 

 

 

 

 

 

 

 

 

 

 

Fixed assets, net

 

42,681

 

 

 

41,268

 

 

 

41,988

 

 

 

42,340

 

 

 

42,985

 

Goodwill

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

Intangible assets, net

 

12,318

 

 

 

13,425

 

 

 

14,544

 

 

 

15,680

 

 

 

16,919

 

Other assets

 

476,934

 

 

 

475,657

 

 

 

408,752

 

 

 

398,114

 

 

 

418,770

 

Total assets

$

14,518,590

 

 

$

14,025,042

 

 

$

13,871,154

 

 

$

13,325,982

 

 

$

13,054,172

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

3,958,743

 

 

$

3,852,486

 

 

$

3,880,561

 

 

$

4,192,523

 

 

$

4,642,732

 

Interest-bearing deposits

 

8,217,628

 

 

 

8,057,421

 

 

 

7,739,299

 

 

 

6,962,113

 

 

 

6,186,418

 

Total deposits

 

12,176,371

 

 

 

11,909,907

 

 

 

11,619,860

 

 

 

11,154,636

 

 

 

10,829,150

 

Subordinated debentures and notes

 

155,984

 

 

 

155,844

 

 

 

155,706

 

 

 

155,569

 

 

 

155,433

 

FHLB advances

 

 

 

 

 

 

 

150,000

 

 

 

100,000

 

 

 

100,000

 

Other borrowings

 

297,829

 

 

 

182,372

 

 

 

199,390

 

 

 

213,489

 

 

 

324,119

 

Other liabilities

 

172,338

 

 

 

165,039

 

 

 

127,965

 

 

 

109,468

 

 

 

123,207

 

Total liabilities

 

12,802,522

 

 

 

12,413,162

 

 

 

12,252,921

 

 

 

11,733,162

 

 

 

11,531,909

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

Preferred stock

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

Common stock

 

374

 

 

 

374

 

 

 

374

 

 

 

373

 

 

 

373

 

Additional paid-in capital

 

995,208

 

 

 

992,044

 

 

 

988,355

 

 

 

984,281

 

 

 

982,660

 

Retained earnings

 

749,513

 

 

 

715,303

 

 

 

680,981

 

 

 

642,153

 

 

 

597,574

 

Accumulated other comprehensive loss

 

(101,015

)

 

 

(167,829

)

 

 

(123,465

)

 

 

(105,975

)

 

 

(130,332

)

Total shareholders’ equity

 

1,716,068

 

 

 

1,611,880

 

 

 

1,618,233

 

 

 

1,592,820

 

 

 

1,522,263

 

Total liabilities and shareholders’ equity

$

14,518,590

 

 

$

14,025,042

 

 

$

13,871,154

 

 

$

13,325,982

 

 

$

13,054,172

 

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
 

 

 

Year ended

 

December 31, 2023

 

December 31, 2022

($ in thousands)

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

 

Average

Balance

 

Interest

Income/

Expense

 

Average

Yield/

Rate

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans1, 2

$

10,324,951

 

$

688,439

 

6.67

%

 

$

9,193,682

 

$

456,703

 

4.97

%

Securities2

 

2,291,552

 

 

71,129

 

3.10

 

 

 

2,100,687

 

 

54,822

 

2.61

 

Interest-earning deposits

 

260,214

 

 

13,430

 

5.16

 

 

 

1,074,165

 

 

10,599

 

0.99

 

Total interest-earning assets

 

12,876,717

 

 

772,998

 

6.00

 

 

 

12,368,534

 

 

522,124

 

4.22

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

928,519

 

 

 

 

 

 

951,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

13,805,236

 

 

 

 

 

$

13,319,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

$

2,559,238

 

$

46,976

 

1.84

%

 

$

2,318,363

 

$

7,038

 

0.30

%

Money market accounts

 

3,043,794

 

 

92,976

 

3.05

 

 

 

2,781,579

 

 

19,306

 

0.69

 

Savings accounts

 

668,368

 

 

975

 

0.15

 

 

 

819,043

 

 

305

 

0.04

 

Certificates of deposit

 

1,198,551

 

 

42,796

 

3.57

 

 

 

569,272

 

 

3,509

 

0.62

 

Total interest-bearing deposits

 

7,469,951

 

 

183,723

 

2.46

 

 

 

6,488,257

 

 

30,158

 

0.46

 

Subordinated debentures and notes

 

155,702

 

 

9,781

 

6.28

 

 

 

155,160

 

 

9,166

 

5.91

 

FHLB advances

 

54,615

 

 

2,752

 

5.04

 

 

 

33,467

 

 

599

 

1.79

 

Securities sold under agreements to repurchase

 

168,745

 

 

3,647

 

2.16

 

 

 

211,039

 

 

506

 

0.24

 

Other borrowings

 

71,738

 

 

2,424

 

3.38

 

 

 

22,812

 

 

750

 

3.29

 

Total interest-bearing liabilities

 

7,920,751

 

 

202,327

 

2.55

 

 

 

6,910,735

 

 

41,179

 

0.60

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

4,131,163

 

 

 

 

 

 

4,805,549

 

 

 

 

Other liabilities

 

130,201

 

 

 

 

 

 

104,581

 

 

 

 

Total liabilities

 

12,182,115

 

 

 

 

 

 

11,820,865

 

 

 

 

Shareholders' equity

 

1,623,121

 

 

 

 

 

 

1,498,759

 

 

 

 

Total liabilities and shareholders' equity

$

13,805,236

 

 

 

 

 

$

13,319,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net interest income

 

 

$

570,671

 

 

 

 

 

$

480,945

 

 

Net interest margin

 

 

 

 

4.43

%

 

 

 

 

 

3.89

%

 

 

 

 

 

 

 

 

 

 

 

 

1 Average balances include nonaccrual loans. Interest income includes loan fees of $13.8 million and $16.7 million for the years ended December 31, 2023 and December 31, 2022, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $8.1 million and $7.0 million for the years ended December 31, 2023 and December 31, 2022, respectively.

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
 

 

 

Quarter ended

($ in thousands)

Dec 31,

2023

 

Sep 30,

2023

 

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

LOAN PORTFOLIO

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

4,672,559

 

 

$

4,448,535

 

 

$

4,360,862

 

 

$

4,032,189

 

 

$

3,859,882

 

Commercial real estate

 

4,803,571

 

 

 

4,794,355

 

 

 

4,802,293

 

 

 

4,699,302

 

 

 

4,628,371

 

Construction real estate

 

760,425

 

 

 

723,796

 

 

 

671,573

 

 

 

663,264

 

 

 

611,565

 

Residential real estate

 

372,188

 

 

 

376,120

 

 

 

368,867

 

 

 

364,059

 

 

 

395,537

 

Other

 

275,375

 

 

 

274,014

 

 

 

309,028

 

 

 

253,104

 

 

 

241,783

 

Total loans

$

10,884,118

 

 

$

10,616,820

 

 

$

10,512,623

 

 

$

10,011,918

 

 

$

9,737,138

 

 

 

 

 

 

 

 

 

 

 

DEPOSIT PORTFOLIO

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand accounts

$

3,958,743

 

 

$

3,852,486

 

 

$

3,880,561

 

 

$

4,192,523

 

 

$

4,642,732

 

Interest-bearing demand accounts

 

2,950,259

 

 

 

2,749,598

 

 

 

2,629,339

 

 

 

2,395,901

 

 

 

2,256,295

 

Money market and savings accounts

 

3,994,455

 

 

 

3,837,145

 

 

 

3,577,856

 

 

 

3,672,539

 

 

 

3,399,415

 

Brokered certificates of deposit

 

482,759

 

 

 

695,551

 

 

 

893,808

 

 

 

369,505

 

 

 

118,968

 

Other certificates of deposit

 

790,155

 

 

 

775,127

 

 

 

638,296

 

 

 

524,168

 

 

 

411,740

 

Total deposits

$

12,176,371

 

 

$

11,909,907

 

 

$

11,619,860

 

 

$

11,154,636

 

 

$

10,829,150

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

Loans

$

10,685,961

 

 

$

10,521,966

 

 

$

10,284,873

 

 

$

9,795,045

 

 

$

9,423,984

 

Securities

 

2,276,915

 

 

 

2,302,850

 

 

 

2,297,995

 

 

 

2,288,451

 

 

 

2,204,211

 

Interest-earning assets

 

13,383,638

 

 

 

13,160,587

 

 

 

12,756,653

 

 

 

12,189,750

 

 

 

11,995,295

 

Assets

 

14,332,804

 

 

 

14,068,860

 

 

 

13,671,985

 

 

 

13,131,195

 

 

 

12,986,568

 

Deposits

 

12,163,346

 

 

 

11,922,534

 

 

 

11,387,813

 

 

 

10,913,489

 

 

 

11,002,614

 

Shareholders’ equity

 

1,652,882

 

 

 

1,648,605

 

 

 

1,621,337

 

 

 

1,568,451

 

 

 

1,490,592

 

Tangible common equity1

 

1,202,872

 

 

 

1,197,486

 

 

 

1,169,091

 

 

 

1,115,052

 

 

 

1,035,896

 

 

 

 

 

 

 

 

 

 

 

YIELDS (tax equivalent)

 

 

 

 

 

 

 

 

 

Loans

 

6.87

%

 

 

6.80

%

 

 

6.64

%

 

 

6.33

%

 

 

5.87

%

Securities

 

3.20

 

 

 

3.11

 

 

 

3.06

 

 

 

3.03

 

 

 

2.91

 

Interest-earning assets

 

6.20

 

 

 

6.12

 

 

 

5.97

 

 

 

5.69

 

 

 

5.25

 

Interest-bearing deposits

 

3.03

 

 

 

2.77

 

 

 

2.26

 

 

 

1.56

 

 

 

0.94

 

Deposits

 

2.03

 

 

 

1.84

 

 

 

1.46

 

 

 

0.92

 

 

 

0.53

 

Subordinated debentures and notes

 

6.30

 

 

 

6.28

 

 

 

6.27

 

 

 

6.28

 

 

 

6.07

 

FHLB advances and other borrowed funds

 

3.06

 

 

 

2.76

 

 

 

3.45

 

 

 

2.60

 

 

 

1.39

 

Interest-bearing liabilities

 

3.09

 

 

 

2.84

 

 

 

2.40

 

 

 

1.72

 

 

 

1.07

 

Net interest margin

 

4.23

 

 

 

4.33

 

 

 

4.49

 

 

 

4.71

 

 

 

4.66

 

 

1 Refer 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,

2023

 

Sep 30,

2023

 

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

ASSET QUALITY

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

$

28,479

 

 

$

6,856

 

 

$

2,973

 

 

$

(264

)

 

$

2,075

 

Nonperforming loans

 

43,728

 

 

 

48,932

 

 

 

16,112

 

 

 

11,972

 

 

 

9,981

 

Classified assets

 

185,389

 

 

 

184,393

 

 

 

108,065

 

 

 

110,384

 

 

 

99,122

 

Nonperforming loans to total loans

 

0.40

%

 

 

0.46

%

 

 

0.15

%

 

 

0.12

%

 

 

0.10

%

Nonperforming assets to total assets

 

0.34

%

 

 

0.40

%

 

 

0.12

%

 

 

0.09

%

 

 

0.08

%

Allowance for credit losses to total loans

 

1.24

%

 

 

1.34

%

 

 

1.34

%

 

 

1.38

%

 

 

1.41

%

Allowance for credit losses to loans, excluding guaranteed loans

 

1.35

%

 

 

1.47

%

 

 

1.48

%

 

 

1.53

%

 

 

1.56

%

Allowance for credit losses to nonperforming loans

 

308.2

%

 

 

290.5

%

 

 

877.1

%

 

 

1,155.2

%

 

 

1,371.9

%

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

 

1.06

%

 

 

0.26

%

 

 

0.12

%

 

 

(0.01

)%

 

 

0.09

%

 

 

 

 

 

 

 

 

 

 

WEALTH MANAGEMENT

 

 

 

 

 

 

 

 

 

Trust assets under management

$

2,235,073

 

 

$

2,129,408

 

 

$

1,992,563

 

 

$

1,956,146

 

 

$

1,885,394

 

 

 

 

 

 

 

 

 

 

 

SHARE DATA

 

 

 

 

 

 

 

 

 

Book value per common share

$

43.94

 

 

$

41.19

 

 

$

41.39

 

 

$

40.76

 

 

$

38.93

 

Tangible book value per common share1

$

33.85

 

 

$

31.06

 

 

$

31.23

 

 

$

30.55

 

 

$

28.67

 

Market value per share

$

44.65

 

 

$

37.50

 

 

$

39.10

 

 

$

44.59

 

 

$

48.96

 

Period end common shares outstanding

 

37,416

 

 

 

37,385

 

 

 

37,359

 

 

 

37,311

 

 

 

37,253

 

Average basic common shares

 

37,421

 

 

 

37,405

 

 

 

37,347

 

 

 

37,305

 

 

 

37,257

 

Average diluted common shares

 

37,554

 

 

 

37,520

 

 

 

37,495

 

 

 

37,487

 

 

 

37,415

 

 

 

 

 

 

 

 

 

 

 

CAPITAL

 

 

 

 

 

 

 

 

 

Total risk-based capital to risk-weighted assets2

 

14.2

%

 

 

14.1

%

 

 

14.1

%

 

 

14.3

%

 

 

14.2

%

Tier 1 capital to risk-weighted assets2

 

12.7

%

 

 

12.6

%

 

 

12.5

%

 

 

12.6

%

 

 

12.6

%

Common equity tier 1 capital to risk-weighted assets2

 

11.3

%

 

 

11.2

%

 

 

11.1

%

 

 

11.2

%

 

 

11.1

%

Tangible common equity to tangible assets1

 

8.96

%

 

 

8.51

%

 

 

8.65

%

 

 

8.81

%

 

 

8.43

%

 

 

 

 

 

 

 

 

 

 

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

2 Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

 
 
 
 

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
 

 

 

Quarter ended

 

Year ended

($ in thousands)

Dec 31,

2023

 

Sep 30,

2023

 

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

 

Dec 31,

2023

 

Dec 31,

2022

CORE EFFICIENCY RATIO

 

 

 

 

Net interest income (GAAP)

$

140,732

 

 

$

141,639

 

 

$

140,692

 

 

$

139,529

 

 

$

138,835

 

 

$

562,592

 

 

$

473,903

 

Tax equivalent adjustment

 

1,915

 

 

 

2,061

 

 

 

2,062

 

 

 

2,041

 

 

 

1,983

 

 

 

8,079

 

 

 

7,042

 

Noninterest income (GAAP)

 

25,452

 

 

 

12,085

 

 

 

14,290

 

 

 

16,898

 

 

 

16,873

 

 

 

68,725

 

 

 

59,162

 

Less gain on sale of investment securities

 

220

 

 

 

 

 

 

 

 

 

381

 

 

 

 

 

 

601

 

 

 

 

Less gain (loss) on sale of other real estate owned

 

 

 

 

 

 

 

97

 

 

 

90

 

 

 

 

 

 

187

 

 

 

(93

)

Core revenue (non-GAAP)

 

167,879

 

 

 

155,785

 

 

 

156,947

 

 

 

157,997

 

 

 

157,691

 

 

 

638,608

 

 

 

540,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

92,603

 

 

 

88,644

 

 

 

85,956

 

 

 

80,983

 

 

 

77,149

 

 

 

348,186

 

 

 

274,216

 

Less FDIC special assessment

 

2,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,412

 

 

 

 

Less amortization on intangibles

 

1,108

 

 

 

1,118

 

 

 

1,136

 

 

 

1,239

 

 

 

1,299

 

 

 

4,601

 

 

 

5,367

 

Core noninterest expense (non-GAAP)

 

89,083

 

 

 

87,526

 

 

 

84,820

 

 

 

79,744

 

 

 

75,850

 

 

 

341,173

 

 

 

268,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core efficiency ratio (non-GAAP)

 

53.06

%

 

 

56.18

%

 

 

54.04

%

 

 

50.47

%

 

 

48.10

%

 

 

53.42

%

 

 

49.77

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended

(in thousands, except per share data)

Dec 31,

2023

 

Sep 30,

2023

 

Jun 30,

2023

 

Mar 31,

2023

 

Dec 31,

2022

TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO

Shareholders’ equity

$

1,716,068

 

 

$

1,611,880

 

 

$

1,618,233

 

 

$

1,592,820

 

 

$

1,522,263

 

Less preferred stock

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

 

 

71,988

 

Less goodwill

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

 

 

365,164

 

Less intangible assets

 

12,318

 

 

 

13,425

 

 

 

14,544

 

 

 

15,680

 

 

 

16,919

 

Tangible common equity (non-GAAP)

$

1,266,598

 

 

$

1,161,303

 

 

$

1,166,537

 

 

$

1,139,988

 

 

$

1,068,192

 

Less net unrealized losses on HTM securities, after tax

 

41,038

 

 

 

81,367

 

 

 

53,611

 

 

 

48,630

 

 

 

61,435

 

Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP)

$

1,225,560

 

 

$

1,079,936

 

 

$

1,112,926

 

 

$

1,091,358

 

 

$

1,006,757

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

37,416

 

 

 

37,385

 

 

 

37,359

 

 

 

37,311

 

 

 

37,253

 

Tangible book value per share (non-GAAP)

$

33.85

 

 

$

31.06

 

 

$

31.23

 

 

$

30.55

 

 

$

28.67

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

14,518,590

 

 

$

14,025,042

 

 

$

13,871,154

 

 

$

13,325,982

 

 

$

13,054,172

 

Less goodwill

 

365,164

 

 

 

365,164

 

 

$

365,164

 

 

 

365,164

 

 

 

365,164

 

Less intangible assets

 

12,318

 

 

 

13,425

 

 

$

14,544

 

 

 

15,680

 

 

 

16,919

 

Tangible assets (non-GAAP)

$

14,141,108

 

 

$

13,646,453

 

 

$

13,491,446

 

 

$

12,945,138

 

 

$

12,672,089

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets (non-GAAP)

 

8.96

%

 

 

8.51

%

 

 

8.65

%

 

 

8.81

%

 

 

8.43

%

Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP)

 

8.67

%

 

 

7.91

%

 

 

8.25

%

 

 

8.43

%

 

 

7.94

%

 
 

 

Quarter Ended

 

Year ended

($ in thousands)

Dec 31,

2023

 

Sep 30,

2023