Business Wire | Jul 26, 2021 04:05PM EDT

Enterprise Financial Reports Second Quarter 2021 Results

Jul. 26, 2021

ST. LOUIS--(BUSINESS WIRE)--Jul. 26, 2021--Enterprise Financial Services Corp (Nasdaq: EFSC) (the "Company" or "EFSC") reported net income of $38.4 million for the second quarter 2021, an increase of $8.5 million compared to the linked first quarter ("linked quarter") and an increase of $23.8 million from the prior year quarter. Earnings per diluted share ("EPS") was $1.23 for the second quarter 2021, compared to $0.96 and $0.56 for the linked and prior year quarters, respectively.

Jim Lally, EFSC's President and Chief Executive Officer, commented, "We have successfully navigated the challenges posed over the past year due to the pandemic, while also completing the acquisition and integration of Seacoast. These successes are evident in our second quarter results that produced a record net income of $38.4 million and a strong pre-provision net revenue ("PPNR") return on average assets of 1.85%1. Core loan growth accelerated during the period, with solid growth in C&I and our specialty niches, partially offset by PPP forgiveness. Fee income rebounded from the first quarter, net interest margin was stable and our expenses were well-controlled. Continued improvement in the economic forecast and our improving asset quality metrics led to an allowance release of $2.7 million in the quarter, while still maintaining a significant allowance coverage ratio of 2.09% when excluding guaranteed loans. The strength of our operating fundamentals supported an increase of our dividend by approximately 6% and the repurchase of $12 million of stock during the quarter as a way to provide an additional return to our shareholders."

Lally added, "We announced the closing of the First Choice acquisition last week that significantly expands our commercial banking presence in California. I am excited about our future with an expanded footprint, a strengthening economy and customer base and the increased ability for in-person collaboration."

^1 PPNR and PPNR return on assets are a non-GAAP measure. Refer to discussionand reconciliation of these measures in the accompanying financial tables.

Highlights

Comparisons to the prior year are impacted by the acquisition of Seacoast Commerce Banc Holdings ("Seacoast") that closed in the fourth quarter 2020.

* Earnings - Net income in the second quarter 2021 was $38.4 million, an increase of $8.5 million compared to the linked quarter and an increase of $23.8 million from the prior year quarter. EPS was $1.23 per diluted share for the second quarter 2021, compared to $0.96 and $0.56 per diluted share for the linked and prior year quarters, respectively. Merger-related expenses of $1.9 million and $3.1 million for second quarter 2021 and first quarter 2021, respectively, reduced EPS by $0.04 and $0.07 per share in the current quarter and linked quarter, respectively.

* Pre-provision net revenue1 ("PPNR") - PPNR of $47.4 million in the second quarter 2021 increased $6.8 million and $9.6 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to stronger noninterest income. The increase from the prior year quarter was primarily from the Seacoast acquisition that was completed in the fourth quarter 2020 and an increase in PPP fee income due to an increase in loan forgiveness.

* Net interest income and net interest margin ("NIM") - Net interest income of $81.7 million for the second quarter 2021 increased $2.6 million and $15.9 million from the linked quarter and prior year quarter, respectively. NIM was 3.46% for the second quarter 2021, compared to 3.50% and 3.53% for the linked quarter and prior year quarter, respectively. Additional cash on the balance sheet reduced NIM by approximately 5 bps compared to the linked quarter.

* Noninterest income - Noninterest income of $16.2 million for the second quarter 2021 increased $4.9 million and $6.2 million from the linked quarter and prior year quarter, respectively. The increase was primarily due to tax credit revenue and income from private equity investments.

* Loans - Total loans decreased $62.5 million from the linked quarter to $7.2 billion as of June 30, 2021. The decrease was due to net paydowns in PPP loans of $341.0 million. Excluding PPP, loans grew $278.5 million, or 17.1%, on an annualized basis from the linked quarter. Average loans totaled $7.3 billion for the quarter ended June 30, 2021 compared to $7.2 billion and $6.0 billion for the linked and prior year quarters, respectively.

PPP details:

Quarter ended

($ inthousands, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,except per 2021 2021 2020 2020 2020share data)

PPP loansoutstanding, $ 396,660 $ 737,660 $ 698,645 $ 819,100 $ 807,814 net ofdeferred fees

Average PPPloans 664,375 692,161 806,697 813,244 634,632 outstanding,net

PPP average 171 220 187 216 224 loan size

PPP interest 7,940 8,475 10,261 5,226 4,083 and fee income

PPP deferred 12,243 16,676 11,304 19,522 22,414 fees

PPP average 4.79 % 4.97 % 5.06 % 2.56 % 2.59 %yield

Quarter ended

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

Financial Metrics:

As Reported

Excluding PPP*

As Reported

Excluding PPP*

As Reported

Excluding PPP*

As Reported

Excluding PPP*

As Reported

Excluding PPP*

EPS

$

1.23

$

1.04

$

0.96

$

0.75

$

1.00

$

0.73

$

0.68

$

0.53

$

0.56

$

0.44

ROAA

1.50

%

1.35

%

1.22

%

1.03

%

1.26

%

1.01

%

0.86

%

0.74

%

0.72

%

0.62

%

PPNR ROAA

1.85

%

1.65

%

1.66

%

1.41

%

2.07

%

1.78

%

1.81

%

1.73

%

1.87

%

1.81

%

Tangible common equity/tangible assets*

8.32

%

8.66

%

8.18

%

8.84

%

8.40

%

9.07

%

7.99

%

8.89

%

7.81

%

8.67

%

Leverage ratio

9.4

%

10.0

%

9.5

%

10.2

%

10.0

%

11.0

%

9.2

%

10.2

%

9.2

%

10.0

%

NIM

3.46

%

3.36

%

3.50

%

3.39

%

3.66

%

3.52

%

3.29

%

3.37

%

3.53

%

3.62

%

Allowance for credit losses/loans

1.77

%

2.09

%

1.80

%

2.22

%

1.89

%

2.31

%

2.01

%

2.32

%

1.80

%

2.07

%

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

* Asset quality - The allowance for credit losses to total loans was 1.77% at June 30, 2021, compared to 1.80% at March 31, 2021 and June 30, 2020. The ratio of nonperforming assets to total assets was 0.44% at June 30, 2021 compared to 0.42% and 0.55% at March 31, 2021 and June 30, 2020, respectively. The decline in the allowance to total loans ratio in the second quarter 2021 was primarily due to a provision benefit of $2.7 million supported by high-quality credit metrics and continued improvement in economic forecasts, and growth in portfolio loan balances.

* Deposits - Total deposits increased $124.1 million, or 1.5%, from the linked quarter to $8.6 billion as of June 30, 2021. Year-over-year, deposits grew $1.9 billion, or 29.0%, from $6.7 billion as of June 30, 2020. Average deposits totaled $8.6 billion for the quarter ended June 30, 2021 compared to $8.2 billion and $6.6 billion for the linked and prior year quarters, respectively. Noninterest-bearing deposit accounts represented 36.0% of total deposits, and the loan to deposit ratio was 83.6% at June 30, 2021.

* Capital - Total shareholders' equity was $1.1 billion and the tangible common equity to tangible assets ratio was 8.3% at June 30, 2021, compared to 8.2% at March 31, 2021. The Bank's regulatory capital ratios remain "well-capitalized," with a common equity tier 1 ratio of 12.3% and a total risk-based capital ratio of 13.4% as of June 30, 2021. The Company's common equity tier 1 ratio and total risk-based capital ratio was 11.1% and 14.9%, respectively, at June 30, 2021. The Company has 1,748,363 shares available for repurchase under its common stock repurchase authorization. The Company repurchased 251,637 shares totaling $11.8 million in the quarter. The Company's Board of Directors unanimously approved a quarterly dividend of $0.19 per common share, payable on September 30, 2021 to shareholders of record as of September 15, 2021, an increase of $0.01 compared to the second quarter.

* Liquidity - The Company maintains a high level of both on-balance-sheet and off-balance-sheet liquidity. At June 30, 2021, on-balance-sheet liquidity consisted of cash and unpledged investment securities of $1.2 billion. Off-balance-sheet liquidity totaled $1.9 billion through the Federal Home Loan Bank, Federal Reserve and correspondent bank lines. The Company also has an unused $25 million revolving line of credit at the holding company and maintains a shelf registration allowing for the issuance of various forms of equity and debt securities.

Net Interest Income

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

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2021 2021 2020 2020 2020

Financial As Excluding As Excluding As Excluding As Excluding As ExcludingMetrics: Reported PPP* Reported PPP* Reported PPP* Reported PPP* Reported PPP*

EPS $ 1.23 $ 1.04 $ 0.96 $ 0.75 $ 1.00 $ 0.73 $ 0.68 $ 0.53 $ 0.56 $ 0.44

ROAA 1.50 % 1.35 % 1.22 % 1.03 % 1.26 % 1.01 % 0.86 % 0.74 % 0.72 % 0.62 %

PPNR ROAA 1.85 % 1.65 % 1.66 % 1.41 % 2.07 % 1.78 % 1.81 % 1.73 % 1.87 % 1.81 %

Tangiblecommonequity/ 8.32 % 8.66 % 8.18 % 8.84 % 8.40 % 9.07 % 7.99 % 8.89 % 7.81 % 8.67 %tangibleassets*

Leverage 9.4 % 10.0 % 9.5 % 10.2 % 10.0 % 11.0 % 9.2 % 10.2 % 9.2 % 10.0 %ratio

NIM 3.46 % 3.36 % 3.50 % 3.39 % 3.66 % 3.52 % 3.29 % 3.37 % 3.53 % 3.62 %

Allowanceforcredit 1.77 % 2.09 % 1.80 % 2.22 % 1.89 % 2.31 % 2.01 % 2.32 % 1.80 % 2.07 %losses/loans



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

* Asset quality - The allowance for credit losses to total loans was 1.77% at June 30, 2021, compared to 1.80% at March 31, 2021 and June 30, 2020. The ratio of nonperforming assets to total assets was 0.44% at June 30, 2021 compared to 0.42% and 0.55% at March 31, 2021 and June 30, 2020, respectively. The decline in the allowance to total loans ratio in the second quarter 2021 was primarily due to a provision benefit of $2.7 million supported by high-quality credit metrics and continued improvement in economic forecasts, and growth in portfolio loan balances.

* Deposits - Total deposits increased $124.1 million, or 1.5%, from the linked quarter to $8.6 billion as of June 30, 2021. Year-over-year, deposits grew $1.9 billion, or 29.0%, from $6.7 billion as of June 30, 2020. Average deposits totaled $8.6 billion for the quarter ended June 30, 2021 compared to $8.2 billion and $6.6 billion for the linked and prior year quarters, respectively. Noninterest-bearing deposit accounts represented 36.0% of total deposits, and the loan to deposit ratio was 83.6% at June 30, 2021.

* Capital - Total shareholders' equity was $1.1 billion and the tangible common equity to tangible assets ratio was 8.3% at June 30, 2021, compared to 8.2% at March 31, 2021. The Bank's regulatory capital ratios remain "well-capitalized," with a common equity tier 1 ratio of 12.3% and a total risk-based capital ratio of 13.4% as of June 30, 2021. The Company's common equity tier 1 ratio and total risk-based capital ratio was 11.1% and 14.9%, respectively, at June 30, 2021. The Company has 1,748,363 shares available for repurchase under its common stock repurchase authorization. The Company repurchased 251,637 shares totaling $11.8 million in the quarter. The Company's Board of Directors unanimously approved a quarterly dividend of $0.19 per common share, payable on September 30, 2021 to shareholders of record as of September 15, 2021, an increase of $0.01 compared to the second quarter.

* Liquidity - The Company maintains a high level of both on-balance-sheet and off-balance-sheet liquidity. At June 30, 2021, on-balance-sheet liquidity consisted of cash and unpledged investment securities of $1.2 billion. Off-balance-sheet liquidity totaled $1.9 billion through the Federal Home Loan Bank, Federal Reserve and correspondent bank lines. The Company also has an unused $25 million revolving line of credit at the holding company and maintains a shelf registration allowing for the issuance of various forms of equity and debt securities.

Net Interest Income

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

June 30, 2021 March 31, 2021 June 30, 2020

Interest Interest Interest Average Average Average Average Average Average($ in thousands) Income/ Yield/ Income/ Yield/ Income/ Yield/ Balance Rate Balance Rate Balance Rate Expense Expense Expense

Assets

Interest-earning assets:

Loans* $ 7,306,471 $ 79,162 4.35 % $ 7,192,776 $ 77,073 4.35 % $ 6,032,076 $ 63,869 4.26 %

Debt and equity 1,502,582 9,226 2.46 1,417,305 8,818 2.52 1,361,853 9,220 2.72 investments*

Short-term investments 806,928 237 0.12 679,659 189 0.11 177,267 87 0.20

Total interest-earning 9,615,981 88,625 3.70 9,289,740 86,080 3.76 7,571,196 73,176 3.89 assets



Noninterest-earning 665,363 650,312 587,008 assets



Total assets $ 10,281,344 $ 9,940,052 $ 8,158,204



Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing $ 1,985,811 $ 336 0.07 % $ 1,887,059 $ 328 0.07 % $ 1,487,467 $ 244 0.07 %transaction accounts

Money market accounts 2,344,871 988 0.17 2,350,592 975 0.17 1,941,874 995 0.21

Savings 718,193 52 0.03 654,662 48 0.03 590,104 45 0.03

Certificates of 522,633 1,091 0.84 537,166 1,312 0.99 718,529 3,099 1.73 deposit

Total interest-bearing 5,571,508 2,467 0.18 5,429,479 2,663 0.20 4,737,974 4,383 0.37 deposits

Subordinated 203,849 2,847 5.60 203,694 2,819 5.61 169,311 2,316 5.50 debentures

FHLB advances 50,000 197 1.58 50,000 195 1.58 251,231 455 0.73

Securities sold underagreements to 209,062 58 0.11 231,527 60 0.11 192,117 57 0.12 repurchase

Other borrowings 27,147 94 1.39 28,650 100 1.42 32,842 147 1.80

Total interest-bearing 6,061,566 5,663 0.37 5,943,350 5,837 0.40 5,383,475 7,358 0.55 liabilities



Noninterest-bearing liabilities:

Demand deposits 3,008,703 2,777,900 1,813,760

Other liabilities 94,106 122,321 92,806

Total liabilities 9,164,375 8,843,571 7,290,041

Shareholders' equity 1,116,969 1,096,481 868,163

Total liabilities and $ 10,281,344 $ 9,940,052 $ 8,158,204 shareholders' equity



Total net interest $ 82,962 $ 80,243 $ 66,537 income

Net interest margin 3.46 % 3.50 % 3.53 %

* Non-taxable income is presented on a tax-equivalent basis using a 24.9% and24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustmentswere $1.2 million for the three months ended June 30, 2021, $1.1 million forthe three months ended March 31, 2021 and $0.7 million for the three monthsended June 30, 2020.

Net interest income for the second quarter increased $2.6 million to $81.7 million from $79.1 million in the linked quarter, and increased $15.9 million from the prior year period. NIM, on a tax equivalent basis, was 3.46% for the second quarter, compared to 3.50% in the linked quarter, and 3.53% in the second quarter 2020. The increase in net interest income from the linked quarter was primarily due to higher volumes on loans and investments While PPP loans decreased in the current quarter, forgiveness of these loans by the SBA accelerated deferred loan fees into income that benefits net interest margin. In addition, improvement in the loan mix benefited net interest income, as the reduction in PPP loans that bear a 1% interest rate have mostly been replaced with loans at a higher yield.

NIM decreased four basis points from the linked quarter to 3.46% during the current quarter primarily due to a six basis point decrease in earning asset yields. The decrease in the earning asset yield was primarily due to higher levels of cash related to payoffs of PPP loans and deposit growth (5 bps), and lower yields on investment securities (1 bp), partially offset by loans (1 bp) and lower cost of funds (1 bp).

The cost of interest-bearing liabilities declined two basis points from the linked quarter, primarily due to lower rates on time deposits.

Loans

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

Quarter ended

December 31, 2020

($ in June 30, March 31, Seacoast^a Legacy Consolidated September 30, June 30,thousands) 2021 2021 EFSC^a 2020 2020

C&I $ 1,116,229 $ 1,048,839 $ 16,079 $ 1,086,981 $ 1,103,060 $ 1,075,421 $ 1,052,373

CRE investor 1,467,243 1,491,244 107,449 1,313,456 1,420,905 1,281,567 1,298,801 owned

CRE owner 789,220 805,581 98,134 727,712 825,846 766,919 782,258 occupied

SBA loans* 1,010,727 941,075 874,578 21,352 895,930 15,927 17,195

Sponsor 463,744 394,207 - 396,487 396,487 367,337 383,458 finance*

Lifeinsurance 564,366 543,084 - 534,092 534,092 517,559 520,705 premiumfinancing*

Tax credits* 423,258 387,968 - 382,602 382,602 368,908 363,222

SBA PPP 396,660 737,660 85,729 612,916 698,645 819,100 807,814 loans

Residential 302,007 299,517 9,138 308,953 318,091 321,258 326,467 real estate

Constructionand land 467,586 438,303 32,535 441,864 474,399 450,225 455,686 development

Other 225,227 201,303 764 174,114 174,878 142,086 132,072

Total Loans $ 7,226,267 $ 7,288,781 $ 1,224,406 $ 6,000,529 $ 7,224,935 $ 6,126,307 $ 6,140,051



Total loan 4.35 % 4.35 % 4.46 % 4.08 % 4.31 %yield

Variableinterestrate loans 60 % 56 % 57 % 50 % 51 %to totalloans



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

*Specialty loan category

^a Amounts reported are as of December 31, 2020 and are separately shownattributable to the Seacoast loan portfolio acquired on November 12, 2020, andthe Company's pre-Seacoast acquisition loan portfolio.

Loans totaled $7.2 billion at June 30, 2021, decreasing $62.5 million compared to the linked quarter. Excluding PPP, loans grew $278.5 million, or 17.1%, on an annualized basis from the linked quarter. The increase was driven by C&I loans ($69.8 million) and a broad-based increase in specialty lending ($130.7 million). The recent acquisition of Seacoast expanded the Company's SBA lending capabilities. SBA loans represent $70 million of the increase in specialty lending during the current quarter. Year-over-year, loans increased $1.1 billion, or 17.7%. The year-over-year increase was primarily due to the Seacoast acquisition. Line draw utilization continues to be below the historical average. For the quarter ended June 30, 2021 average line draw utilization was 38.9% compared to 37.0% and 42.6% for the linked quarter and prior-year quarter, respectively.

Asset Quality

The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:

Quarter ended

June 30, March 31, December September June 30,($ in thousands) 2021 2021 31, 30, 2020 2020 2020

Nonperforming $ 42,252 $ 36,659 $ 38,507 $ 39,623 $ 41,473 loans*

Other real 3,612 6,164 5,330 4,835 4,874 estate

Nonperforming $ 45,864 $ 42,823 $ 43,837 $ 44,458 $ 46,347 assets*



Nonperformingloans to total 0.58 % 0.50 % 0.53 % 0.65 % 0.68 %loans

Nonperformingassets to total 0.44 % 0.42 % 0.45 % 0.53 % 0.55 %assets

Allowance forcredit losses to 1.77 % 1.80 % 1.89 % 2.01 % 1.80 %total loans

Net charge-offs $ 869 $ 5,647 $ (612) $ 1,027 $ 309 (recoveries)

*Excludes government guaranteed balances.

The provision for credit losses was a benefit of $2.7 million for the second quarter 2021 compared to an expense of $46 thousand for the linked quarter and $19.6 million for the prior year quarter. Gross charge-offs of $1.8 million in the quarter primarily consisted of one retail loan that had previously defaulted and was fully reserved in a prior period. The Company's strong asset quality metrics and strengthening customer credit risk profiles, along with an improvement in the economic forecast, particularly GDP and unemployment, led to a decline in the allowance for credit losses in the second quarter 2021.

Deposits

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

Quarter ended

December 31, 2020

($ in thousands) June 30, March 31, Seacoast^a Legacy Consolidated September 30, June 30, 2021 2021 EFSC^a 2020 2020

Noninterest-bearing $ 3,111,581 $ 2,910,216 $ 666,447 $ 2,045,381 $ 2,711,828 $ 1,929,540 $ 1,965,868 accounts

Interest-bearingtransaction 2,013,129 1,990,308 55,590 1,712,907 1,768,497 1,499,756 1,508,535 accounts

Money market and 3,000,460 3,093,569 327,471 2,627,498 2,954,969 2,634,885 2,566,011 savings accounts

Brokeredcertificates of 50,209 50,209 - 50,209 50,209 65,209 85,414 deposit

Other certificates 464,125 471,142 10,325 489,561 499,886 546,836 573,752 of deposit

Total deposit $ 8,639,504 $ 8,515,444 $ 1,059,833 $ 6,925,556 $ 7,985,389 $ 6,676,226 $ 6,699,580 portfolio



Noninterest-bearingdeposits to total 36.0 % 34.2 % 62.9 % 29.5 % 34.0 % 28.9 % 29.3 %deposits

^aAmounts reported are as of December 31, 2020 and are shown separatelyattributable to the Seacoast deposit portfolio acquired on November 12, 2020,and the Company's pre-Seacoast acquisition deposit portfolio.

Total deposits at June 30, 2021 were $8.6 billion, an increase of $124.1 million from March 31, 2021, and an increase of $1.9 billion from June 30, 2020.

Core deposits, defined as total deposits excluding certificates of deposits, were $8.1 billion at June 30, 2021, an increase of $131.1 million from the linked quarter. The Company's participation in PPP continues to contribute to the increase in deposits. Money market and savings accounts decreased $93.1 million compared to the linked quarter, while interest-bearing and noninterest-bearing deposits increased $22.8 million and $201.4 million, respectively. Noninterest-bearing deposits were $3.1 billion at June 30, 2021, or 36.0% of total deposits. Specialty deposits increased $153.0 million over the linked quarter primarily attributable to community associations, third party escrow, and sponsor finance. The Kansas City region experienced growth of $65.7 million compared to the linked quarter while the St. Louis region experienced a decline in deposits of $119.7 million for the same period. Certificates of deposit decreased $7.0 million from the linked quarter and $144.8 million from the prior year quarter. The total cost of deposits was 0.12% for the current quarter compared to 0.13% and 0.27% for the linked quarter and prior year quarter, respectively.

Noninterest Income

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

Linked quarter comparison Prior year comparison

Quarter ended Quarter ended

($ in thousands) June 30, March 31, Increase June 30, Increase 2021 2021 (decrease) 2020 (decrease)

Deposit service $ 3,862 $ 3,084 $ 778 25 % $ 2,616 $ 1,246 48 %charges

Wealth management 2,516 2,483 33 1 % 2,326 190 8 %revenue

Card services 2,975 2,496 479 19 % 2,225 750 34 %revenue

Tax credit income 1,370 (1,041 ) 2,411 232 % (221 ) 1,591 (720 )(expense) %

Miscellaneous income 5,481 4,268 1,213 28 % 3,014 2,467 82 %

Total noninterest $ 16,204 $ 11,290 $ 4,914 44 % $ 9,960 $ 6,244 63 %income



Total noninterest income for the second quarter 2021 was $16.2 million, an increase of $4.9 million from the linked quarter and an increase of $6.2 million from the prior year quarter. The increase from the linked quarter and prior year quarter was primarily due to tax credit income, along with a private equity fund distribution and gain on sale of other real estate reported in miscellaneous income. Deposit service charges and card services revenue increased over the linked quarter due to improving activity levels.

Noninterest Expenses

Noninterest expense was $52.5 million for the second quarter 2021, compared to $52.9 million for the linked quarter, and $37.9 million for the prior year quarter. Employee compensation declined $1.4 million from the linked quarter due to seasonally higher payroll taxes in the first quarter. Merger-related expenses also declined and were $1.9 million and $3.1 million in the current and linked quarter, respectively. These decreases were offset by a $2.4 million increase in Other expense, primarily attributed to higher customer deposit and card servicing costs due to higher volumes. The increase from the prior year quarter was primarily due to acquired Seacoast operations.

For the second quarter 2021, the Company's efficiency ratio was 53.6% compared to 58.5% and 50.0% for the linked quarter and prior year quarter, respectively. The Company's core efficiency ratio2 was 51.9% for the quarter ended June 30, 2021, compared to 55.0% for the linked quarter and 50.7% for the prior year quarter.

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

Income Taxes

The Company's effective tax rate was 20% for the quarter ended June 30, 2021, as well as for both the linked quarter and the prior year quarter.

Capital

The following table presents various EFSC capital ratios:

Quarter ended

June March December September JunePercent 30, 31, 31, 30, 30, 2021 2021 2020 2020 2020

Total risk-based capital to 14.9 % 15.1 % 14.9 % 14.6 % 14.4 %risk-weighted assets

Tier 1 capital to risk weighted 12.3 % 12.3 % 12.1 % 11.6 % 11.4 %assets

Common equity tier 1 capital to 11.1 % 11.0 % 10.9 % 10.2 % 9.9 %risk-weighted assets

Tangible common equity to 8.3 % 8.2 % 8.4 % 8.0 % 7.8 %tangible assets

Total equity was $1.1 billion at June 30, 2021, an increase of $25.8 million from the linked quarter. The Company repurchased $11.8 million of common stock in the second quarter 2021 which reduced total capital. However, due to the Company's strong earnings profile, tangible book value per common share increased 3.5% to $26.85 at June 30, 2021 from $25.92 at March 31, 2021. 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, PPNR ROAA, financial metrics adjusted for PPP impact, core efficiency ratio, and the tangible common equity ratio, in this release that are considered "non-GAAP financial measures." Generally, a non-GAAP financial measure is a numerical measure of a company's financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

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

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

Conference Call and Webcast Information

The Company will host a conference call and webcast at 10:00 a.m. Central Time on Tuesday, July 27, 2021. During the call, management will review the second quarter of 2021 results and related matters. This press release as well as a related slide presentation will be accessible on the Company's website at www.enterprisebank.com under "Investor Relations" prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-800-363-2106 (Conference ID #3330879). A recorded replay of the conference call will be available on the website approximately two hours after the call's completion. Visit http://bit.ly/EFSC2Q2021 and register to receive a dial in number, passcode, and pin number. The replay will be available for approximately two weeks following the conference call.

About Enterprise

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $12.7 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 47 branch offices in Arizona, California, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices in Arizona, California, Colorado, Illinois, Indiana, Massachusetts, Michigan, Nevada, Ohio, Oregon, Texas, Utah, and Washington. 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

Certain statements contained in this Current Report on Form 8-K may be considered forward-looking statements regarding Enterprise, including its wholly-owned subsidiary EB&T, First Choice, including its wholly-owned subsidiary FCB, and Enterprise's proposed acquisition of First Choice and FCB. These forward-looking statements may include: statements regarding the acquisition, the consideration payable in connection with the acquisition, and the ability of the parties to consummate the acquisition. 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 that Enterprise anticipated in its forward-looking statements and future results could differ materially from historical performance. Factors that could cause or contribute to such differences include, but are not limited to, the possibility: that expected benefits of the acquisition may not materialize in the timeframe expected or at all, or may be more costly to achieve; that the acquisition may not be timely completed, if at all; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive transaction agreement; the outcome of any legal proceedings that may be instituted against Enterprise or First Choice; that prior to the completion of the acquisition or thereafter, Enterprise's and First Choice's respective businesses may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies; that required regulatory, Enterprise shareholder or First Choice shareholder or other approvals are not obtained or other closing conditions are not satisfied in a timely manner or at all; that adverse regulatory conditions may be imposed in connection with regulatory approvals of the acquisition; reputational risks and the reaction of the companies' employees or customers to the transaction; diversion of management time on acquisition-related issues; that the COVID-19 pandemic, including uncertainty and volatility in financial, commodities and other markets, and disruptions to banking and other financial activity, could harm Enterprise and First Choice's business, financial position and results of operations, and could adversely affect the timing and anticipated benefits of the proposed acquisition; and those factors and risks referenced from time to time in Enterprise's filings with the Securities and Exchange Commission, or the SEC, including in Enterprise's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its other filings with the SEC. For any forward-looking statements made in this Current Report on Form 8-K or in any documents, Enterprise claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only, are not forecasts and may not reflect actual results.

Except to the extent required by applicable law or regulation, Enterprise 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 Six Months ended

(in thousands, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,except per 2021 2021 2020 2020 2020 2021 2020share data)

EARNINGS SUMMARY

Net interest $ 81,738 $ 79,123 $ 77,446 $ 63,354 $ 65,833 $ 160,861 $ 129,201 income

Provision(benefit) for (2,669) 46 9,463 14,080 19,591 (2,623) 41,855 credit losses

Noninterest 16,204 11,290 18,506 12,629 9,960 27,494 23,368 income

Noninterest 52,456 52,884 51,050 39,524 37,912 105,340 76,585 expense

Income beforeincome tax 48,155 37,483 35,439 22,379 18,290 85,638 34,129 expense

Income tax 9,750 7,557 6,508 4,428 3,656 17,307 6,627 expense

Net income $ 38,405 $ 29,926 $ 28,931 $ 17,951 $ 14,634 $ 68,331 $ 27,502



Dilutedearnings per $ 1.23 $ 0.96 $ 1.00 $ 0.68 $ 0.56 $ 2.18 $ 1.04 share

Return on 1.50 % 1.22 % 1.26 % 0.86 % 0.72 % 1.36 % 0.71 %average assets

Return onaverage common 13.79 % 11.07 % 11.60 % 8.06 % 6.78 % 12.45 % 6.38 %equity

Return onaverage 18.44 % 14.92 % 15.73 % 10.94 % 9.28 % 16.71 % 8.76 %tangible commonequity

Net interestmargin (tax 3.46 % 3.50 % 3.66 % 3.29 % 3.53 % 3.48 % 3.65 %equivalent)

Efficiency 53.56 % 58.49 % 53.20 % 52.02 % 50.02 % 55.93 % 50.20 %ratio

Core efficiency 51.86 % 55.02 % 50.93 % 51.04 % 50.66 % 53.38 % 50.94 %ratio^1



Total loans $ 7,226,267 $ 7,288,781 $ 7,224,935 $ 6,126,307 $ 6,140,051

Total average $ 7,306,471 $ 7,192,776 $ 6,780,701 $ 6,112,715 $ 6,032,076 loans

Total assets $ 10,346,993 $ 10,190,699 $ 9,751,571 $ 8,367,976 $ 8,357,501

Total average $ 10,281,344 $ 9,940,052 $ 9,141,159 $ 8,341,968 $ 8,158,204 $ 9,940,052 $ 7,760,904 assets

Total deposits $ 8,639,504 $ 8,515,444 $ 7,985,389 $ 6,676,226 $ 6,699,580

Total average $ 8,580,211 $ 8,207,379 $ 7,311,074 $ 6,666,368 $ 6,551,734 $ 8,207,379 $ 6,194,726 deposits

Period endcommon shares 31,185 31,259 31,210 26,210 26,196 outstanding

Dividends per $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.36 $ 0.36 common share

Tangible bookvalue per $ 26.85 $ 25.92 $ 25.48 $ 24.80 $ 24.22 common share

Tangible commonequity to 8.32 % 8.18 % 8.40 % 7.99 % 7.81 % tangible assets^1

Totalrisk-basedcapital to 14.9 % 15.1 % 14.9 % 14.6 % 14.4 % risk-weightedassets



^1Refer to Reconciliations of Non-GAAP Financial Measures table for areconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

Six Months ended

($ in thousands, except per share data)

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

Jun 30, 2021

Jun 30, 2020

INCOME STATEMENTS

NET INTEREST INCOME

Total interest income

$

87,401

$

84,960

$

84,113

$

70,787

$

73,191

$

172,361

$

149,879

Total interest expense

5,663

5,837

6,667

7,433

7,358

11,500

20,678

Net interest income

81,738

79,123

77,446

63,354

65,833

160,861

129,201

Provision (benefit) for credit losses

(2,669

)

46

9,463

14,080

19,591

(2,623

)

41,855

Net interest income after provision for credit losses

84,407

79,077

67,983

49,274

46,242

163,484

87,346

NONINTEREST INCOME

Deposit service charges

3,862

3,084

3,160

2,798

2,616

6,946

5,759

Wealth management revenue

2,516

2,483

2,449

2,456

2,326

4,999

4,827

Card services revenue

2,975

2,496

2,511

2,498

2,225

5,471

4,472

Tax credit income (expense)

1,370

(1,041

)

4,048

748

(221

)

329

1,815

Other income

5,481

4,268

6,338

4,129

3,014

9,749

6,495

Total noninterest income

16,204

11,290

18,506

12,629

9,960

27,494

23,368

NONINTEREST EXPENSE

Employee compensation and benefits

28,132

29,562

26,174

22,040

22,389

57,694

44,074

Occupancy

3,529

3,751

3,517

3,408

3,185

7,280

6,532

Merger-related expenses

1,949

3,142

2,611

1,563

-

5,091

-

Other

18,846

16,429

18,748

12,513

12,338

35,275

25,979

Total noninterest expense

52,456

52,884

51,050

39,524

37,912

105,340

76,585

Income before income tax expense

48,155

37,483

35,439

22,379

18,290

85,638

34,129

Income tax expense

9,750

7,557

6,508

4,428

3,656

17,307

6,627

Net income

$

38,405

$

29,926

$

28,931

$

17,951

$

14,634

$

68,331

$

27,502

Basic earnings per share

$

1.23

$

0.96

$

1.00

$

0.68

$

0.56

$

2.19

$

1.04

Diluted earnings per share

$

1.23

$

0.96

$

1.00

$

0.68

$

0.56

$

2.18

$

1.04

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended Six Months ended

($ inthousands, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,except per 2021 2021 2020 2020 2020 2021 2020share data)

INCOME STATEMENTS

NET INTEREST INCOME

Total interest $ 87,401 $ 84,960 $ 84,113 $ 70,787 $ 73,191 $ 172,361 $ 149,879 income

Total interest 5,663 5,837 6,667 7,433 7,358 11,500 20,678 expense

Net interest 81,738 79,123 77,446 63,354 65,833 160,861 129,201 income

Provision(benefit) for (2,669 ) 46 9,463 14,080 19,591 (2,623 ) 41,855 credit losses

Net interestincome after 84,407 79,077 67,983 49,274 46,242 163,484 87,346 provision forcredit losses



NONINTEREST INCOME

Depositservice 3,862 3,084 3,160 2,798 2,616 6,946 5,759 charges

Wealthmanagement 2,516 2,483 2,449 2,456 2,326 4,999 4,827 revenue

Card services 2,975 2,496 2,511 2,498 2,225 5,471 4,472 revenue

Tax creditincome 1,370 (1,041 ) 4,048 748 (221 ) 329 1,815 (expense)

Other income 5,481 4,268 6,338 4,129 3,014 9,749 6,495

Totalnoninterest 16,204 11,290 18,506 12,629 9,960 27,494 23,368 income



NONINTEREST EXPENSE

Employeecompensation 28,132 29,562 26,174 22,040 22,389 57,694 44,074 and benefits

Occupancy 3,529 3,751 3,517 3,408 3,185 7,280 6,532

Merger-related 1,949 3,142 2,611 1,563 - 5,091 - expenses

Other 18,846 16,429 18,748 12,513 12,338 35,275 25,979

Totalnoninterest 52,456 52,884 51,050 39,524 37,912 105,340 76,585 expense



Income beforeincome tax 48,155 37,483 35,439 22,379 18,290 85,638 34,129 expense

Income tax 9,750 7,557 6,508 4,428 3,656 17,307 6,627 expense

Net income $ 38,405 $ 29,926 $ 28,931 $ 17,951 $ 14,634 $ 68,331 $ 27,502



Basic earnings $ 1.23 $ 0.96 $ 1.00 $ 0.68 $ 0.56 $ 2.19 $ 1.04 per share

Dilutedearnings per $ 1.23 $ 0.96 $ 1.00 $ 0.68 $ 0.56 $ 2.18 $ 1.04 share

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

($ in thousands)

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

BALANCE SHEETS

ASSETS

Cash and due from banks

$

126,789

$

103,367

$

99,760

$

98,816

$

100,804

Interest-earning deposits

889,960

788,464

445,569

301,773

254,830

Debt and equity investments

1,585,847

1,463,818

1,448,803

1,375,931

1,387,001

Loans held for sale

5,763

8,531

13,564

14,032

16,029

Loans

7,226,267

7,288,781

7,224,935

6,126,307

6,140,051

Less: Allowance for credit losses

128,185

131,527

136,671

123,270

110,270

Total loans, net

7,098,082

7,157,254

7,088,264

6,003,037

6,029,781

Fixed assets, net

50,972

52,078

53,169

56,807

58,231

Goodwill

260,567

260,567

260,567

210,344

210,344

Intangible assets, net

20,358

21,670

23,084

21,820

23,196

Other assets

308,655

334,950

318,791

285,416

277,285

Total assets

$

10,346,993

$

10,190,699

$

9,751,571

$

8,367,976

$

8,357,501

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

$

3,111,581

$

2,910,216

$

2,711,828

$

1,929,540

$

1,965,868

Interest-bearing deposits

5,527,923

5,605,228

5,273,561

4,746,686

4,733,712

Total deposits

8,639,504

8,515,444

7,985,389

6,676,226

6,699,580

Subordinated debentures

203,940

203,778

203,637

203,510

203,384

FHLB advances

50,000

50,000

50,000

250,000

250,000

Other borrowings

234,509

229,389

301,081

239,038

227,961

Other liabilities

100,739

99,591

132,489

116,935

108,613

Total liabilities

9,228,692

9,098,202

8,672,596

7,485,709

7,489,538

Shareholders' equity

1,118,301

1,092,497

1,078,975

882,267

867,963

Total liabilities and shareholders' equity

$

10,346,993

$

10,190,699

$

9,751,571

$

8,367,976

$

8,357,501

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

($ in thousands) Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2021 2021 2020 2020 2020

BALANCE SHEETS

ASSETS

Cash and due from banks $ 126,789 $ 103,367 $ 99,760 $ 98,816 $ 100,804

Interest-earning deposits 889,960 788,464 445,569 301,773 254,830

Debt and equity investments 1,585,847 1,463,818 1,448,803 1,375,931 1,387,001

Loans held for sale 5,763 8,531 13,564 14,032 16,029



Loans 7,226,267 7,288,781 7,224,935 6,126,307 6,140,051

Less: Allowance for credit 128,185 131,527 136,671 123,270 110,270 losses

Total loans, net 7,098,082 7,157,254 7,088,264 6,003,037 6,029,781



Fixed assets, net 50,972 52,078 53,169 56,807 58,231

Goodwill 260,567 260,567 260,567 210,344 210,344

Intangible assets, net 20,358 21,670 23,084 21,820 23,196

Other assets 308,655 334,950 318,791 285,416 277,285

Total assets $ 10,346,993 $ 10,190,699 $ 9,751,571 $ 8,367,976 $ 8,357,501



LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits $ 3,111,581 $ 2,910,216 $ 2,711,828 $ 1,929,540 $ 1,965,868

Interest-bearing deposits 5,527,923 5,605,228 5,273,561 4,746,686 4,733,712

Total deposits 8,639,504 8,515,444 7,985,389 6,676,226 6,699,580

Subordinated debentures 203,940 203,778 203,637 203,510 203,384

FHLB advances 50,000 50,000 50,000 250,000 250,000

Other borrowings 234,509 229,389 301,081 239,038 227,961

Other liabilities 100,739 99,591 132,489 116,935 108,613

Total liabilities 9,228,692 9,098,202 8,672,596 7,485,709 7,489,538

Shareholders' equity 1,118,301 1,092,497 1,078,975 882,267 867,963

Total liabilities and $ 10,346,993 $ 10,190,699 $ 9,751,571 $ 8,367,976 $ 8,357,501 shareholders' equity

Six months ended

June 30, 2021

June 30, 2020

($ in thousands)

Average Balance

Interest Income/ Expense

Average Yield/ Rate

Average Balance

Interest Income/ Expense

Average Yield/ Rate

Assets

Interest-earning assets:

Loans*

$

7,249,938

$

156,234

4.35

%

$

5,692,159

$

131,878

4.66

%

Debt and equity investments*

1,460,179

18,044

2.49

1,354,410

18,928

2.81

Short-term investments

743,645

426

0.12

134,758

387

0.58

Total interest-earning assets

9,453,762

174,704

3.73

7,181,327

151,193

4.23

Noninterest-earning assets

657,879

579,577

Total assets

$

10,111,641

$

7,760,904

Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing transaction accounts

$

1,936,707

$

664

0.07

%

$

1,431,311

$

1,581

0.22

%

Money market accounts

2,347,716

1,963

0.17

1,876,482

5,735

0.61

Savings

686,603

100

0.03

566,549

188

0.07

Certificates of deposit

529,860

2,403

0.91

755,871

6,767

1.80

Total interest-bearing deposits

5,500,886

5,130

0.19

4,630,213

14,271

0.62

Subordinated debentures

203,772

5,666

5.61

155,303

4,235

5.48

FHLB advances

50,000

392

1.58

235,842

1,350

1.15

Securities sold under agreements to repurchase

220,233

118

0.11

197,002

419

0.43

Other borrowed funds

27,894

194

1.40

33,556

403

2.42

Total interest-bearing liabilities

6,002,785

11,500

0.39

5,251,916

20,678

0.79

Noninterest-bearing liabilities:

Demand deposits

2,893,939

1,564,513

Other liabilities

108,135

77,876

Total liabilities

9,004,859

6,894,305

Shareholders' equity

1,106,782

866,599

Total liabilities and shareholders' equity

$

10,111,641

$

7,760,904

Total net interest income

$

163,204

$

130,515

Net interest margin

3.48

%

3.65

%

* Non-taxable income is presented on a tax-equivalent basis using a 24.9% and 24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustments were $2.3 million and $1.3 million for the six months ended June 30, 2021 and 2020, respectively.

Six months ended

June 30, 2021 June 30, 2020

Average Interest Average Average Interest Average($ in thousands) Balance Income/ Yield/ Balance Income/ Yield/ Expense Rate Expense Rate

Assets

Interest-earning assets:

Loans* $ 7,249,938 $ 156,234 4.35 % $ 5,692,159 $ 131,878 4.66 %

Debt and equity 1,460,179 18,044 2.49 1,354,410 18,928 2.81 investments*

Short-term 743,645 426 0.12 134,758 387 0.58 investments

Totalinterest-earning 9,453,762 174,704 3.73 7,181,327 151,193 4.23 assets



Noninterest-earning 657,879 579,577 assets



Total assets $ 10,111,641 $ 7,760,904



Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing $ 1,936,707 $ 664 0.07 % $ 1,431,311 $ 1,581 0.22 %transaction accounts

Money market accounts 2,347,716 1,963 0.17 1,876,482 5,735 0.61

Savings 686,603 100 0.03 566,549 188 0.07

Certificates of 529,860 2,403 0.91 755,871 6,767 1.80 deposit

Totalinterest-bearing 5,500,886 5,130 0.19 4,630,213 14,271 0.62 deposits

Subordinated 203,772 5,666 5.61 155,303 4,235 5.48 debentures

FHLB advances 50,000 392 1.58 235,842 1,350 1.15

Securities sold underagreements to 220,233 118 0.11 197,002 419 0.43 repurchase

Other borrowed funds 27,894 194 1.40 33,556 403 2.42

Totalinterest-bearing 6,002,785 11,500 0.39 5,251,916 20,678 0.79 liabilities



Noninterest-bearing liabilities:

Demand deposits 2,893,939 1,564,513

Other liabilities 108,135 77,876

Total liabilities 9,004,859 6,894,305

Shareholders' equity 1,106,782 866,599

Total liabilities and $ 10,111,641 $ 7,760,904 shareholders' equity



Total net interest $ 163,204 $ 130,515 income

Net interest margin 3.48 % 3.65 %

* Non-taxable income is presented on a tax-equivalent basis using a 24.9% and24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustmentswere $2.3 million and $1.3 million for the six months ended June 30, 2021 and2020, respectively.



ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

($ in thousands)

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

LOAN PORTFOLIO

Commercial and industrial

$

2,930,805

$

3,079,643

$

3,088,995

$

3,152,394

$

3,143,197

Commercial real estate

3,200,748

3,186,970

3,087,827

2,027,886

2,048,444

Construction real estate

556,776

510,501

546,686

474,727

481,221

Residential real estate

305,497

303,047

319,179

321,792

326,992

Other

232,441

208,620

182,248

149,508

140,197

Total loans

$

7,226,267

$

7,288,781

$

7,224,935

$

6,126,307

$

6,140,051

DEPOSIT PORTFOLIO

Noninterest-bearing accounts

$

3,111,581

$

2,910,216

$

2,711,828

$

1,929,540

$

1,965,868

Interest-bearing transaction accounts

2,013,129

1,990,308

1,768,497

1,499,756

1,508,535

Money market and savings accounts

3,000,460

3,093,569

2,954,969

2,634,885

2,566,011

Brokered certificates of deposit

50,209

50,209

50,209

65,209

85,414

Other certificates of deposit

464,125

471,142

499,886

546,836

573,752

Total deposit portfolio

$

8,639,504

$

8,515,444

$

7,985,389

$

6,676,226

$

6,699,580

AVERAGE BALANCES

Total loans

$

7,306,471

$

7,192,776

$

6,780,701

$

6,112,715

$

6,032,076

Debt and equity investments

1,502,582

1,417,305

1,395,806

1,361,515

1,361,853

Interest-earning assets

9,615,981

9,289,741

8,524,136

7,770,084

7,571,196

Total assets

10,281,344

9,940,052

9,141,159

8,341,968

8,158,204

Deposits

8,580,211

8,207,379

7,311,074

6,666,368

6,551,734

Shareholders' equity

1,116,969

1,096,481

992,017

885,496

868,163

Tangible common equity1

835,405

813,568

731,813

652,663

633,946

YIELDS (tax equivalent)

Total loans

4.35

%

4.35

%

4.46

%

4.08

%

4.31

%

Debt and equity investments

2.46

2.52

2.56

2.56

2.72

Interest-earning assets

3.70

3.76

3.97

3.67

3.93

Interest-bearing deposits

0.18

0.20

0.25

0.31

0.37

Total deposits

0.12

0.13

0.17

0.22

0.27

Subordinated debentures

5.60

5.61

5.52

5.53

5.50

FHLB advances and other borrowed funds

0.49

0.46

0.61

0.74

0.56

Interest-bearing liabilities

0.37

0.40

0.47

0.54

0.55

Net interest margin

3.46

3.50

3.66

3.29

3.53

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

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)



Quarter ended

($ in thousands) Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2021 2021 2020 2020 2020

LOAN PORTFOLIO

Commercial and industrial $ 2,930,805 $ 3,079,643 $ 3,088,995 $ 3,152,394 $ 3,143,197

Commercial real estate 3,200,748 3,186,970 3,087,827 2,027,886 2,048,444

Construction real estate 556,776 510,501 546,686 474,727 481,221

Residential real estate 305,497 303,047 319,179 321,792 326,992

Other 232,441 208,620 182,248 149,508 140,197

Total loans $ 7,226,267 $ 7,288,781 $ 7,224,935 $ 6,126,307 $ 6,140,051



DEPOSIT PORTFOLIO

Noninterest-bearing $ 3,111,581 $ 2,910,216 $ 2,711,828 $ 1,929,540 $ 1,965,868 accounts

Interest-bearing 2,013,129 1,990,308 1,768,497 1,499,756 1,508,535 transaction accounts

Money market and savings 3,000,460 3,093,569 2,954,969 2,634,885 2,566,011 accounts

Brokered certificates of 50,209 50,209 50,209 65,209 85,414 deposit

Other certificates of 464,125 471,142 499,886 546,836 573,752 deposit

Total deposit portfolio $ 8,639,504 $ 8,515,444 $ 7,985,389 $ 6,676,226 $ 6,699,580



AVERAGE BALANCES

Total loans $ 7,306,471 $ 7,192,776 $ 6,780,701 $ 6,112,715 $ 6,032,076

Debt and equity investments 1,502,582 1,417,305 1,395,806 1,361,515 1,361,853

Interest-earning assets 9,615,981 9,289,741 8,524,136 7,770,084 7,571,196

Total assets 10,281,344 9,940,052 9,141,159 8,341,968 8,158,204

Deposits 8,580,211 8,207,379 7,311,074 6,666,368 6,551,734

Shareholders' equity 1,116,969 1,096,481 992,017 885,496 868,163

Tangible common equity^1 835,405 813,568 731,813 652,663 633,946



YIELDS (tax equivalent)

Total loans 4.35 % 4.35 % 4.46 % 4.08 % 4.31 %

Debt and equity investments 2.46 2.52 2.56 2.56 2.72

Interest-earning assets 3.70 3.76 3.97 3.67 3.93

Interest-bearing deposits 0.18 0.20 0.25 0.31 0.37

Total deposits 0.12 0.13 0.17 0.22 0.27

Subordinated debentures 5.60 5.61 5.52 5.53 5.50

FHLB advances and other 0.49 0.46 0.61 0.74 0.56 borrowed funds

Interest-bearing 0.37 0.40 0.47 0.54 0.55 liabilities

Net interest margin 3.46 3.50 3.66 3.29 3.53

^1Refer to Reconciliations of Non-GAAP Financial Measures table for areconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

(in thousands, except per share data)

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

ASSET QUALITY

Net charge-offs (recoveries)

$

869

$

5,647

$

(612

)

$

1,027

$

309

Nonperforming loans

42,252

36,659

38,507

39,623

41,473

Classified assets

100,063

114,713

123,808

84,710

96,678

Nonperforming loans to total loans

0.58

%

0.50

%

0.53

%

0.65

%

0.68

%

Nonperforming assets to total assets

0.44

%

0.42

%

0.45

%

0.53

%

0.55

%

Allowance for credit losses to total loans

1.77

%

1.80

%

1.89

%

2.01

%

1.80

%

Allowance for credit losses to nonperforming loans

303.4

%

358.8

%

354.9

%

311.1

%

265.9

%

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

0.05

%

0.32

%

(0.04

)%

0.07

%

0.02

%

WEALTH MANAGEMENT

Trust assets under management

$

1,945,293

$

1,809,001

$

1,783,089

$

1,641,980

$

1,602,358

Trust assets under administration

2,487,545

2,427,448

2,504,318

2,433,026

2,455,111

MARKET DATA

Book value per common share

$

35.86

$

34.95

$

34.57

$

33.66

$

33.13

Tangible book value per common share1

$

26.85

$

25.92

$

25.48

$

24.80

$

24.22

Market value per share

$

46.39

$

49.44

$

34.95

$

27.27

$

31.12

Period end common shares outstanding

31,185

31,259

31,210

26,210

26,196

Average basic common shares

31,265

31,247

28,929

26,217

26,180

Average diluted common shares

31,312

31,306

28,968

26,228

26,195

CAPITAL

Total risk-based capital to risk-weighted assets

14.9

%

15.1

%

14.9

%

14.6

%

14.4

%

Tier 1 capital to risk-weighted assets

12.3

%

12.3

%

12.1

%

11.6

%

11.4

%

Common equity tier 1 capital to risk-weighted assets

11.1

%

11.0

%

10.9

%

10.2

%

9.9

%

Tangible common equity to tangible assets1

8.3

%

8.2

%

8.4

%

8.0

%

7.8

%

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

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

(in thousands, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,except per 2021 2021 2020 2020 2020share data)

ASSET QUALITY

Netcharge-offs $ 869 $ 5,647 $ (612 ) $ 1,027 $ 309 (recoveries)

Nonperforming 42,252 36,659 38,507 39,623 41,473 loans

Classified 100,063 114,713 123,808 84,710 96,678 assets

Nonperformingloans to total 0.58 % 0.50 % 0.53 % 0.65 % 0.68 %loans

Nonperformingassets to 0.44 % 0.42 % 0.45 % 0.53 % 0.55 %total assets

Allowance forcredit losses 1.77 % 1.80 % 1.89 % 2.01 % 1.80 %to total loans

Allowance forcredit lossesto 303.4 % 358.8 % 354.9 % 311.1 % 265.9 %nonperformingloans

Netcharge-offs(recoveries) 0.05 % 0.32 % (0.04 ) 0.07 % 0.02 %to average %loans(annualized)



WEALTH MANAGEMENT

Trust assetsunder $ 1,945,293 $ 1,809,001 $ 1,783,089 $ 1,641,980 $ 1,602,358 management

Trust assetsunder 2,487,545 2,427,448 2,504,318 2,433,026 2,455,111 administration



MARKET DATA

Book value per $ 35.86 $ 34.95 $ 34.57 $ 33.66 $ 33.13 common share

Tangible bookvalue per $ 26.85 $ 25.92 $ 25.48 $ 24.80 $ 24.22 common share^1

Market value $ 46.39 $ 49.44 $ 34.95 $ 27.27 $ 31.12 per share

Period endcommon shares 31,185 31,259 31,210 26,210 26,196 outstanding

Average basic 31,265 31,247 28,929 26,217 26,180 common shares

Averagediluted common 31,312 31,306 28,968 26,228 26,195 shares



CAPITAL

Totalrisk-basedcapital to 14.9 % 15.1 % 14.9 % 14.6 % 14.4 %risk-weightedassets

Tier 1 capitalto 12.3 % 12.3 % 12.1 % 11.6 % 11.4 %risk-weightedassets

Common equitytier 1 capitalto 11.1 % 11.0 % 10.9 % 10.2 % 9.9 %risk-weightedassets

Tangiblecommon equity 8.3 % 8.2 % 8.4 % 8.0 % 7.8 %to tangibleassets^1



^1Refer to Reconciliations of Non-GAAP Financial Measures table for areconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Quarter ended

Six Months ended

($ in thousands)

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

Jun 30, 2021

Jun 30, 2020

CORE PERFORMANCE MEASURES

Net interest income

$

81,738

$

79,123

$

77,446

$

63,354

$

65,833

$

160,861

$

129,201

Less: Incremental accretion income

-

-

856

1,235

719

-

1,992

Core net interest income

81,738

79,123

76,590

62,119

65,114

160,861

127,209

Total noninterest income

16,204

11,290

18,506

12,629

9,960

27,494

23,368

Less: Gain on sale of investment securities

-

-

-

417

-

-

4

Less: Gain on sale of other real estate owned

549

-

-

-

-

549

-

Less: Other non-core income

-

-

-

-

265

-

265

Core noninterest income

15,655

11,290

18,506

12,212

9,695

26,945

23,099

Total core revenue

97,393

90,413

95,096

74,331

74,809

187,806

150,308

Total noninterest expense

52,456

52,884

51,050

39,524

37,912

105,340

76,585

Less: Other expenses related to non-core acquired loans

-

-

8

25

12

-

24

Less: Merger-related expenses

1,949

3,142

2,611

1,563

-

5,091

-

Core noninterest expense

50,507

49,742

48,431

37,936

37,900

100,249

76,561

Core efficiency ratio

51.86

%

55.02

%

50.93

%

51.04

%

50.66

%

53.38

%

50.94

%

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Quarter ended Six Months ended

($ in Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Jun 30, Jun 30,thousands) 2021 2021 2020 2020 2020 2021 2020

CORE PERFORMANCE MEASURES

Net interest $ 81,738 $ 79,123 $ 77,446 $ 63,354 $ 65,833 $ 160,861 $ 129,201 income

Less:Incremental - - 856 1,235 719 - 1,992 accretionincome

Core netinterest 81,738 79,123 76,590 62,119 65,114 160,861 127,209 income



Totalnoninterest 16,204 11,290 18,506 12,629 9,960 27,494 23,368 income

Less: Gain onsale of - - - 417 - - 4 investmentsecurities

Less: Gain onsale of other 549 - - - - 549 - real estateowned

Less: Othernon-core - - - - 265 - 265 income

Corenoninterest 15,655 11,290 18,506 12,212 9,695 26,945 23,099 income



Total core 97,393 90,413 95,096 74,331 74,809 187,806 150,308 revenue



Totalnoninterest 52,456 52,884 51,050 39,524 37,912 105,340 76,585 expense

Less: Otherexpensesrelated to - - 8 25 12 - 24 non-coreacquired loans

Less:Merger-related 1,949 3,142 2,611 1,563 - 5,091 - expenses

Corenoninterest 50,507 49,742 48,431 37,936 37,900 100,249 76,561 expense



Coreefficiency 51.86 % 55.02 % 50.93 % 51.04 % 50.66 % 53.38 % 50.94 %ratio

Quarter ended

($ in thousands)

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

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

Shareholders' equity

$

1,118,301

$

1,092,497

$

1,078,975

$

882,267

$

867,963

Less: Goodwill

260,567

260,567

260,567

210,344

210,344

Less: Intangible assets

20,358

21,670

23,084

21,820

23,196

Tangible common equity

$

837,376

$

810,260

$

795,324

$

650,103

$

634,423

Total assets

$

10,346,993

$

10,190,699

$

9,751,571

$

8,367,976

$

8,357,501

Less: Goodwill

260,567

260,567

260,567

210,344

210,344

Less: Intangible assets

20,358

21,670

23,084

21,820

23,196

Tangible assets

$

10,066,068

$

9,908,462

$

9,467,920

$

8,135,812

$

8,123,961

Tangible common equity to tangible assets

8.32

%

8.18

%

8.40

%

7.99

%

7.81

%

Quarter ended

($ in Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,thousands) 2021 2021 2020 2020 2020

SHAREHOLDERS' EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLEASSETS

Shareholders' $ 1,118,301 $ 1,092,497 $ 1,078,975 $ 882,267 $ 867,963 equity

Less: Goodwill 260,567 260,567 260,567 210,344 210,344

Less:Intangible 20,358 21,670 23,084 21,820 23,196 assets

Tangible common $ 837,376 $ 810,260 $ 795,324 $ 650,103 $ 634,423 equity



Total assets $ 10,346,993 $ 10,190,699 $ 9,751,571 $ 8,367,976 $ 8,357,501

Less: Goodwill 260,567 260,567 260,567 210,344 210,344

Less:Intangible 20,358 21,670 23,084 21,820 23,196 assets

Tangible assets $ 10,066,068 $ 9,908,462 $ 9,467,920 $ 8,135,812 $ 8,123,961



Tangible commonequity to 8.32 % 8.18 % 8.40 % 7.99 % 7.81 %tangible assets

Quarter Ended

($ in thousands)

Jun 30, 2021

Mar 31, 2021

Jun 30, 2020

AVERAGE SHAREHOLDERS' EQUITY AND AVERAGE TANGIBLE COMMON EQUITY

Average shareholder's equity

$

1,116,969

$

1,096,481

$

868,163

Less average goodwill

260,567

260,567

210,344

Less average intangible assets

20,997

22,346

23,873

Average tangible common equity

$

835,405

$

813,568

$

633,946

Quarter Ended

($ in thousands) Jun 30, Mar 31, Jun 30, 2021 2021 2020

AVERAGE SHAREHOLDERS' EQUITY AND AVERAGE TANGIBLE COMMON EQUITY

Average shareholder's equity $ 1,116,969 $ 1,096,481 $ 868,163

Less average goodwill 260,567 260,567 210,344

Less average intangible assets 20,997 22,346 23,873

Average tangible common equity $ 835,405 $ 813,568 $ 633,946



Quarter Ended

($ in thousands)

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

CALCULATION OF PRE-PROVISION NET REVENUE

Net interest income

$

81,738

$

79,123

$

77,446

$

63,354

$

65,833

Noninterest income

16,204

11,290

18,506

12,629

9,960

Less: Noninterest expense

52,456

52,884

51,050

39,524

37,912

Merger-related expenses

1,949

3,142

2,611

1,563

-

PPNR (excluding merger-related expenses)

$

47,435

$

40,671

$

47,513

$

38,022

$

37,881

Average assets

$

10,281,344

$

9,940,052

$

9,141,159

$

8,341,968

$

8,158,204

ROAA - GAAP net income

1.50

%

1.22

%

1.26

%

0.86

%

0.72

%

PPNR ROAA - Adjusted net income

1.85

%

1.66

%

2.07

%

1.81

%

1.87

%

Quarter Ended

($ in thousands) Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2021 2021 2020 2020 2020

CALCULATION OF PRE-PROVISION NET REVENUE

Net interest $ 81,738 $ 79,123 $ 77,446 $ 63,354 $ 65,833 income

Noninterest 16,204 11,290 18,506 12,629 9,960 income

Less:Noninterest 52,456 52,884 51,050 39,524 37,912 expense

Merger-related 1,949 3,142 2,611 1,563 - expenses

PPNR (excludingmerger-related $ 47,435 $ 40,671 $ 47,513 $ 38,022 $ 37,881 expenses)



Average assets $ 10,281,344 $ 9,940,052 $ 9,141,159 $ 8,341,968 $ 8,158,204

ROAA - GAAP net 1.50 % 1.22 % 1.26 % 0.86 % 0.72 %income

PPNR ROAA -Adjusted net 1.85 % 1.66 % 2.07 % 1.81 % 1.87 %income

Quarter Ended

($ in thousands, except per share data)

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

IMPACT OF PAYCHECK PROTECTION PROGRAM

Net income - GAAP

$

38,405

$

29,926

$

28,931

$

17,951

$

14,634

PPP interest and fee income

(7,940

)

(8,475

)

(10,261

)

(5,226

)

(4,083

)

Related tax effect

1,977

2,110

2,534

1,291

1,009

Adjusted net income - Non-GAAP

$

32,442

$

23,561

$

21,204

$

14,016

$

11,560

Average diluted common shares

31,312

31,303

28,968

26,228

26,195

EPS - GAAP net income

$

1.23

$

0.96

$

1.00

$

0.68

$

0.56

EPS - Adjusted net income

$

1.04

$

0.75

$

0.73

$

0.53

$

0.44

Average assets - GAAP

$

10,281,344

$

9,940,052

$

9,141,159

$

8,341,968

$

8,158,204

Average PPP loans, net

(664,375

)

(692,161

)

(806,697

)

(813,244

)

(634,632

)

Adjusted average assets - Non-GAAP

$

9,616,969

$

9,247,891

$

8,334,462

$

7,528,724

$

7,523,572

ROAA - GAAP net income

1.50

%

1.22

%

1.26

%

0.86

%

0.72

%

ROAA - Adjusted net income, adjusted average assets

1.35

%

1.03

%

1.01

%

0.74

%

0.62

%

PPNR (excluding merger-related expenses) - Non-GAAP (see reconciliation above)

$

47,435

$

40,671

$

47,513

$

38,022

$

37,881

PPP interest and fees

(7,940

)

(8,475

)

(10,261

)

(5,226

)

(4,083

)

Adjusted PPNR (excluding merger-related expenses) - Non-GAAP

$

39,495

$

32,196

$

37,252

$

32,796

$

33,798

PPNR ROAA (excluding merger-related expenses) - PPNR (excluding merger-related expenses)

1.85

%

1.66

%

2.07

%

1.81

%

1.87

%

PPNR ROAA (excluding merger-related expenses) - adjusted PPNR (excluding merger-related expenses), adjusted average assets

1.65

%

1.41

%

1.78

%

1.73

%

1.81

%

Tangible assets - Non-GAAP (see reconciliation above)

$

10,066,068

$

9,908,462

$

9,467,920

$

8,135,812

$

8,123,961

PPP loans outstanding, net

(396,660

)

(737,660

)

(698,645

)

(819,100

)

(807,814

)

Adjusted tangible assets - Non-GAAP

$

9,669,408

$

9,170,802

$

8,769,275

$

7,316,712

$

7,316,147

Tangible common equity Non - GAAP (see reconciliation above)

$

837,376

$

810,260

$

795,324

$

650,103

$

634,423

Tangible common equity to tangible assets

8.32

%

8.18

%

8.40

%

7.99

%

7.81

%

Tangible common equity to tangible assets - adjusted tangible assets

8.66

%

8.84

%

9.07

%

8.89

%

8.67

%

Average assets for leverage ratio

$

10,021,240

$

9,675,300

$

8,868,548

$

8,115,020

$

7,928,287

Average PPP loans, net

(664,375

)

(692,161

)

(806,697

)

(813,244

)

(634,632

)

Adjusted average assets for leverage ratio - Non-GAAP

$

9,356,865

$

8,983,139

$

8,061,851

$

7,301,776

$

7,293,655

Tier 1 capital

$

937,840

$

914,459

$

889,527

$

745,397

$

726,574

Leverage ratio

9.4

%

9.5

%

10.0

%

9.2

%

9.2

%

Leverage ratio - adjusted average assets for leverage ratio

10.0

%

10.2

%

11.0

%

10.2

%

10.0

%

Net interest income - tax equivalent

$

82,963

$

80,243

$

78,484

$

64,192

$

66,537

PPP interest and fees

(7,940

)

(8,475

)

(10,261

)

(5,226

)

(4,083

)

Adjusted net interest income - tax equivalent

$

75,023

$

71,768

$

68,223

$

58,966

$

62,454

Average earning assets -GAAP

$

9,615,981

$

9,289,741

$

8,524,136

$

7,770,084

$

7,571,196

Average PPP loans, net

(664,375

)

(692,161

)

(806,697

)

(813,244

)

(634,632

)

Adjusted average earning assets - Non-GAAP

$

8,951,606

$

8,597,580

$

7,717,439

$

6,956,840

$

6,936,564

Net interest margin - tax equivalent

3.46

%

3.50

%

3.66

%

3.29

%

3.53

%

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

3.36

%

3.39

%

3.52

%

3.37

%

3.62

%

Loans - GAAP

$

7,226,267

$

7,288,781

$

7,224,935

$

6,126,307

$

6,140,051

PPP and other guaranteed loans, net

(1,106,414

)

(1,377,302

)

(1,297,212

)

(819,100

)

(807,814

)

Adjusted loans - Non-GAAP

$

6,119,853

$

5,911,479

$

5,927,723

$

5,307,207

$

5,332,237

Allowance for credit losses

$

128,185

$

131,527

$

136,671

$

123,270

$

110,270

Allowance for credit losses/loans - GAAP

1.77

%

1.80

%

1.89

%

2.01

%

1.80

%

Allowance for credit losses/loans - adjusted loans

2.09

2.22

%

2.31

%

2.32

%

2.07

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005767/en/

CONTACT: Investor Relations: Keene Turner, Executive Vice President and CFO (314) 512-7233 Media: Steve Richardson, Vice President (314) 512-7183