Business Wire | Jan 24, 2022 04:05PM EST

Enterprise Financial Reports Fourth Quarter and Full Year 2021 Results

Jan. 24, 2022

ST. LOUIS--(BUSINESS WIRE)--Jan. 24, 2022--Enterprise Financial Services Corp (Nasdaq: EFSC) (the "Company" or "EFSC") reported net income of $50.8 million for the fourth quarter 2021, an increase of $36.9 million and $21.9 million compared to the linked third quarter ("linked quarter") and prior year quarter, respectively. Earnings per diluted share ("EPS") were $1.33 for the fourth quarter 2021, compared to $0.38 and $1.00 for the linked and prior year quarters, respectively.

Jim Lally, EFSC's President and Chief Executive Officer, commented, "The success we had in 2021 is a testament to the strength of our strategically diversified revenue streams. We have structured our lending and deposit niches, geographic footprints, and fee-based sources to drive growth. These efforts resulted in a record fourth quarter in terms of both revenue and earnings, as well as a return on assets of 1.52%. With our variable-rate loan portfolio and strong noninterest-bearing deposit base, we believe we are well-positioned for the future, including for possible interest rate increases. As we move into 2022, we will leverage our guiding principles and continue to focus on creating profitable growth and increased shareholder value."

The Company closed its acquisition of First Choice on July 21, 2021. The results of operations of First Choice are included in our consolidated results from this date forward and are excluded from preceding periods. Comparisons to the prior year are also impacted by the acquisition of Seacoast Commerce Banc Holdings ("Seacoast"), which closed in the fourth quarter 2020. The acquisition of First Choice in 2021 represents the fourth acquisition the Company has completed in the last five years.

Pretax income and earnings per share were impacted by the following items:

Quarter ended Year ended

Dec 31, 2021 Dec 31, 2021

($ in thousands, except per share Pretax EPS Pretax EPSdata) income income

Merger-related expenses $ (2,320) $ $ (22,082) $ (0.04) (0.49)

FCBP CECL double count - - (25,353) (0.55)

Branch-closure expenses - - (3,441) (0.07)

Full-Year Highlights

For 2021, net income was $133.1 million, or $3.86 per diluted share, compared to $74.4 million, or $2.76 per diluted share, in 2020. PPNR1 for the current year was $207.5 million, compared to $161.5 million in 2020. In addition to organic growth, contributing to the PPNR increase in 2021 was a full year of Seacoast operations and a partial year of First Choice operations.

The Company strengthened its liquidity and capital position in the fourth quarter 2021 through the issuance of $75.0 million of noncumulative perpetual preferred stock and the redemption of $50.0 million of subordinated debentures issued in 2016 at 4.75%. In 2021, the Company returned $86.8 million to shareholders through dividends of $26.2 million, or $0.75 per share, and share repurchases of $60.6 million. In addition, the Company issued approximately 7.8 million shares of its common stock valued at $343.7 million to First Choice shareholders upon consummation of the acquisition.

Credit quality remained strong, with nonperforming assets declining to 0.23% of total assets, from 0.45% at the end of 2020. Net charge-offs were 0.14% of average loans in 2021, compared to 0.03% in 2020. The improvements in credit quality and economic forecasts resulted in the allowance for credit losses declining to 1.61% of total loans at the end of 2021, from 1.89% at the end of 2020. Excluding guaranteed portions of loans, which includes Paycheck Protection Program ("PPP") loans, our coverage ratio was 1.84% and 2.31% at the end of 2021 and 2020, respectively. The provision for credit losses was $13.4 million in 2021, compared to $65.4 million in 2020. Acquisition-related provision expense of $25.4 million and $8.6 million in 2021 and 2020, respectively, was included in the provision for credit losses. This expense, commonly referred to as the "CECL double-count", is recognized when a loan portfolio is acquired.

Noninterest income increased 24% in 2021, while expenses remained well-controlled with a core efficiency ratio2 of 51.61%, compared to 50.96% in 2020. The Company commenced the process in 2021 to close five branch locations in California and St. Louis. A lease and fixed asset impairment charge of $3.8 million was recognized, including $0.4 million reported in merger-related expenses. The Company expects to realize annual cost savings of approximately $2.3 million related to these closures.

1 PPNR and PPNR ROAA are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

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

Fourth Quarter Highlights

* Earnings - Net income in the fourth quarter 2021 was $50.8 million, an increase of $36.9 million compared to the linked quarter and an increase of $21.9 million from the prior year quarter. EPS was $1.33 per diluted share for the fourth quarter 2021, compared to $0.38 and $1.00 per diluted share for the linked and prior year quarters, respectively. Merger and branch closure expenses totaled $2.3 million, $18.1 million, and $2.6 million in the current, linked and prior year quarters, respectively.

* Pre-provision net revenue - PPNR1 of $63.3 million in the fourth quarter 2021 increased $7.2 million and $15.8 million from the linked and prior year quarters, respectively.

* Net interest income and net interest margin ("NIM") - Net interest income of $102.1 million for the fourth quarter 2021 increased $4.8 million and $24.6 million from the linked and prior year quarters, respectively. NIM was 3.32% for the fourth quarter 2021, compared to 3.40% and 3.66% for the linked and prior year quarters, respectively.

* Noninterest income - Noninterest income of $22.6 million for the fourth quarter 2021 increased $5.0 million and $4.1 million from the linked and prior year quarters, respectively.

* Loans - Total loans declined $98.9 million from the linked quarter to $9.0 billion as of December 31, 2021, primarily due to a $167.0 million decline in PPP loans. Average loans totaled $9.0 billion for the quarter ended December 31, 2021 compared to $8.7 billion and $6.8 billion for the linked and prior year quarters, respectively.

Quarter ended

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

PPP loansoutstanding, $ 271,958 $ 438,959 $ 396,660 $ 737,660 $ 698,645 net ofdeferred fees

Average PPPloans 365,295 489,104 664,375 692,161 806,697 outstanding,net

PPP average 218 210 171 220 187 loan size

PPP interest 4,864 6,048 7,940 8,475 10,261 and fee income

PPP deferred 4,215 7,428 12,243 16,676 11,304 fees

PPP average 5.28 % 4.91 % 4.79 % 4.97 % 5.06 %yield

Quarter ended

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Financial Metrics:

As Reported

Excluding PPP*

As Reported

Excluding PPP*

As Reported

Excluding PPP*

As Reported

Excluding PPP*

As Reported

Excluding PPP*

EPS

$

1.33

$

1.23

$

0.38

$

0.25

$

1.23

$

1.04

$

0.96

$

0.75

$

1.00

$

0.73

ROAA

1.52

%

1.45

%

0.45

%

0.31

%

1.50

%

1.35

%

1.22

%

1.03

%

1.26

%

1.01

%

PPNR ROAA*

1.89

%

1.80

%

1.81

%

1.68

%

1.85

%

1.65

%

1.66

%

1.41

%

2.07

%

1.78

%

Tangible common equity/tangible assets*

8.13

%

8.31

%

8.40

%

8.71

%

8.32

%

8.66

%

8.18

%

8.84

%

8.40

%

9.07

%

Leverage ratio

9.7

%

10.0

%

9.7

%

10.2

%

9.4

%

10.0

%

9.5

%

10.2

%

10.0

%

11.0

%

NIM

3.32

%

3.26

%

3.40

%

3.33

%

3.46

%

3.36

%

3.50

%

3.39

%

3.66

%

3.52

%

Allowance for credit losses/loans

1.61

%

1.84

%

1.67

%

1.94

%

1.77

%

2.09

%

1.80

%

2.22

%

1.89

%

2.31

%

* 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 on loans to total loans was 1.61% at December 31, 2021, compared to 1.67% at September 30, 2021, and 1.89% at December 31, 2020. Nonperforming assets to total assets was 0.23% at December 31, 2021 compared to 0.35% and 0.45% at September 30, 2021 and December 31, 2020, respectively.

* Deposits - Total deposits increased $516.0 million from the linked quarter to $11.3 billion as of December 31, 2021. Average deposits totaled $11.2 billion for the quarter ended December 31, 2021 compared to $10.3 billion and $7.3 billion for the linked and prior year quarters, respectively. Noninterest deposit accounts represented 40.4% of total deposits at December 31, 2021, and the loan to deposit ratio was 79.5% at that date.

* Capital - Total shareholders' equity was $1.5 billion and the tangible common equity to tangible assets ratio3 was 8.1% at December 31, 2021, compared to $1.4 billion and 8.4% at September 30, 2021. Shareholder's equity increased in the fourth quarter 2021 from the issuance of $72.0 million of preferred stock, net of issuance costs, and net income of $50.8 million. These increases were offset by share repurchases of $27.5 million, dividends of $7.6 million, and a $1.1 million decline in accumulated comprehensive income. Enterprise Bank & Trust's estimated regulatory capital ratios remain "well-capitalized," with a common equity tier 1 ratio of 12.5% and a total risk-based capital ratio of 13.5% as of December 31, 2021. In addition, the consolidated Company's common equity tier 1 ratio and total risk-based capital ratio was 11.3% and 14.7%, respectively, at December 31, 2021.

The Company has 700,473 shares available for repurchase under the existing common stock repurchase authorization. The Company repurchased 577,478 shares totaling $27.5 million in the fourth quarter 2021 for an average price of $47.65. Total shares repurchased year-to-date total 1,299,527 at an average price of $46.62.

The Company's Board of Directors declared a quarterly common stock dividend of $0.21 per common share, payable on March 31, 2022 to shareholders of record as of March 15, 2022. The Board of Directors also declared a cash dividend of $16.38888889 per share of Series A Preferred Stock (or $0.40972222 per depositary share) representing a 5% per annum rate for the period commencing (and including) November 17, 2021 to (but excluding) March 15, 2022. The dividend will be payable on March 15, 2022 to shareholders of record on February 28, 2022.

3 Tangible common equity to tangible assets ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Net Interest Income

Average Balance Sheet

The following tables present, 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

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

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

EPS $ 1.33 $ 1.23 $ 0.38 $ 0.25 $ 1.23 $ 1.04 $ 0.96 $ 0.75 $ 1.00 $ 0.73

ROAA 1.52 % 1.45 % 0.45 % 0.31 % 1.50 % 1.35 % 1.22 % 1.03 % 1.26 % 1.01 %

PPNR ROAA* 1.89 % 1.80 % 1.81 % 1.68 % 1.85 % 1.65 % 1.66 % 1.41 % 2.07 % 1.78 %

Tangiblecommonequity/ 8.13 % 8.31 % 8.40 % 8.71 % 8.32 % 8.66 % 8.18 % 8.84 % 8.40 % 9.07 %tangibleassets*

Leverage 9.7 % 10.0 % 9.7 % 10.2 % 9.4 % 10.0 % 9.5 % 10.2 % 10.0 % 11.0 %ratio

NIM 3.32 % 3.26 % 3.40 % 3.33 % 3.46 % 3.36 % 3.50 % 3.39 % 3.66 % 3.52 %

Allowancefor credit 1.61 % 1.84 % 1.67 % 1.94 % 1.77 % 2.09 % 1.80 % 2.22 % 1.89 % 2.31 %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 on loans to total loans was 1.61% at December 31, 2021, compared to 1.67% at September 30, 2021, and 1.89% at December 31, 2020. Nonperforming assets to total assets was 0.23% at December 31, 2021 compared to 0.35% and 0.45% at September 30, 2021 and December 31, 2020, respectively.

* Deposits - Total deposits increased $516.0 million from the linked quarter to $11.3 billion as of December 31, 2021. Average deposits totaled $11.2 billion for the quarter ended December 31, 2021 compared to $10.3 billion and $7.3 billion for the linked and prior year quarters, respectively. Noninterest deposit accounts represented 40.4% of total deposits at December 31, 2021, and the loan to deposit ratio was 79.5% at that date.

* Capital - Total shareholders' equity was $1.5 billion and the tangible common equity to tangible assets ratio3 was 8.1% at December 31, 2021, compared to $1.4 billion and 8.4% at September 30, 2021. Shareholder's equity increased in the fourth quarter 2021 from the issuance of $72.0 million of preferred stock, net of issuance costs, and net income of $50.8 million. These increases were offset by share repurchases of $27.5 million, dividends of $7.6 million, and a $1.1 million decline in accumulated comprehensive income. Enterprise Bank & Trust's estimated regulatory capital ratios remain "well-capitalized," with a common equity tier 1 ratio of 12.5% and a total risk-based capital ratio of 13.5% as of December 31, 2021. In addition, the consolidated Company's common equity tier 1 ratio and total risk-based capital ratio was 11.3% and 14.7%, respectively, at December 31, 2021.

The Company has 700,473 shares available for repurchase under the existing common stock repurchase authorization. The Company repurchased 577,478 shares totaling $27.5 million in the fourth quarter 2021 for an average price of $47.65. Total shares repurchased year-to-date total 1,299,527 at an average price of $46.62.

The Company's Board of Directors declared a quarterly common stock dividend of $0.21 per common share, payable on March 31, 2022 to shareholders of record as of March 15, 2022. The Board of Directors also declared a cash dividend of $16.38888889 per share of Series A Preferred Stock (or $0.40972222 per depositary share) representing a 5% per annum rate for the period commencing (and including) November 17, 2021 to (but excluding) March 15, 2022. The dividend will be payable on March 15, 2022 to shareholders of record on February 28, 2022.

3 Tangible common equity to tangible assets ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Net Interest Income

Average Balance Sheet

The following tables present, 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, 2021 September 30, 2021 December 31, 2020

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

Assets

Interest-earning assets:

Loans* $ 9,030,982 $ 98,412 4.32 % $ 8,666,353 $ 94,465 4.32 % $ 6,780,702 $ 76,044 4.46 %

Debt and equity 1,753,159 10,146 2.30 1,594,938 9,583 2.38 1,395,806 8,986 2.56 investments*

Short-term investments 1,589,008 590 0.15 1,251,988 480 0.15 347,629 120 0.14

Total earning assets 12,373,149 109,148 3.50 11,513,279 104,528 3.60 8,524,137 85,150 3.97



Noninterest-earning 894,044 821,279 617,022 assets



Total assets $ 13,267,193 $ 12,334,558 $ 9,141,159



Liabilities and Shareholders' Equity

Interest-bearing liabilities:

Interest-bearing $ 2,383,059 $ 491 0.08 % $ 2,228,466 $ 459 0.08 % $ 1,584,369 $ 265 0.07 %transaction accounts

Money market accounts 2,853,655 1,412 0.20 2,675,405 1,294 0.19 2,175,111 1,016 0.19

Savings 776,695 64 0.03 747,927 61 0.03 620,248 46 0.03

Certificates of 616,347 831 0.53 604,594 927 0.61 567,456 1,739 1.22 deposit

Total interest-bearing 6,629,756 2,798 0.17 6,256,392 2,741 0.17 4,947,184 3,066 0.25 deposits

Subordinated 171,453 2,439 5.64 204,011 2,855 5.55 203,564 2,824 5.52 debentures

FHLB advances 50,000 199 1.58 89,457 211 0.94 244,730 603 0.98

Securities sold underagreements to 246,525 60 0.10 216,403 58 0.11 231,836 64 0.11 repurchase

Other borrowings 24,270 85 1.39 25,699 90 1.39 30,095 110 1.45

Total interest-bearing 7,122,004 5,581 0.31 6,791,962 5,955 0.35 5,657,409 6,667 0.47 liabilities



Noninterest-bearing liabilities:

Demand deposits 4,537,247 4,040,761 2,363,890

Other liabilities 112,546 107,739 127,843

Total liabilities 11,771,797 10,940,462 8,149,142

Shareholders' equity 1,495,396 1,394,096 992,017

Total liabilities and $ 13,267,193 $ 12,334,558 $ 9,141,159 shareholders' equity



Total net interest $ 103,567 $ 98,573 $ 78,483 income

Net interest margin 3.32 % 3.40 % 3.66 %

* Non-taxable income is presented on a tax-equivalent basis using a 25.2% and24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustmentswere $1.5 million for the three months ended December 31, 2021, $1.3 millionfor the three months ended September 30, 2021, and $1.0 million for the threemonths ended December 31, 2020.

Net interest income for the fourth quarter 2021 increased $4.8 million to $102.1 million from $97.3 million in the linked quarter, and increased $24.6 million from the prior year period. NIM, on a tax equivalent basis, was 3.32% for the fourth quarter 2021, compared to 3.40% in the linked quarter, and 3.66% in the fourth quarter of 2020. The increase in net interest income from the linked quarter was primarily due to a full quarter of income on acquired First Choice assets, higher income from an expanded investment portfolio and lower interest expense from the redemption of the $50.0 million of subordinated debentures. PPP fee income of $4.9 million, $6.0 million and $10.3 million was included in net interest income for the current, linked and prior year quarters, respectively. The level of PPP income has declined each quarter in 2021 as the portfolio winds down.

NIM decreased 8 basis points from the linked quarter to 3.32% during the current quarter primarily due to a 10 basis point decrease in earning asset yields, offset by a four basis point decrease in the cost of interest-bearing liabilities. Average short-term investments, comprised primarily of interest-bearing cash accounts, increased $337.0 million to $1.6 billion for the fourth quarter 2021 and was the primary reason for the decline in earning asset yields. PPP income continued to benefit net interest income and margin in the fourth quarter 2021, but at a reduced level from both the linked and prior year quarters.

The Company has an asset-sensitive balance sheet, with 63% of loans tied to a variable rate index and 40.4% of the deposit portfolio in noninterest-bearing demand accounts. Approximately $3.2 billion of loans at December 31, 2021 had an interest rate floor and 95% of those loans were at the floor rate. The Company has hedged the majority of its variable rate debt and should not recognize a significant increase in interest expense on these borrowings if interest rates increase.

Loans

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

Quarter ended

September 30, 2021

($ in December 31, FCBP^a Legacy Consolidated June 30, March 31, December 31,thousands) 2021 EFSC^a 2021 2021 2020^b

C&I $ 1,538,155 $ 242,740 $ 1,215,338 $ 1,458,078 $ 1,116,229 $ 1,048,839 $ 1,103,060

CRE investor 1,955,087 553,490 1,381,794 1,935,284 1,467,243 1,491,244 1,420,905 owned

CRE owner 1,112,463 301,929 861,307 1,163,236 789,220 805,581 825,846 occupied

SBA loans* 1,241,449 160,833 1,038,925 1,199,758 1,010,727 941,075 895,930

Sponsor 508,469 - 454,431 454,431 463,744 394,207 396,487 finance*

Lifeinsurance 593,562 - 572,492 572,492 564,366 543,084 534,092 premiumfinancing*

Tax credits* 486,881 - 462,168 462,168 423,258 387,968 382,602

SBA PPP 271,958 206,284 232,675 438,959 396,660 737,660 698,645 loans

Residential 430,985 226,321 293,538 519,859 302,007 299,517 318,091 real estate

Constructionand land 625,526 219,600 432,627 652,227 467,586 438,303 474,399 development

Other 253,107 32,547 227,544 260,091 225,227 201,303 174,878

Total Loans $ 9,017,642 $ 1,943,744 $ 7,172,839 $ 9,116,583 $ 7,226,267 $ 7,288,781 $ 7,224,935



Total loan 4.32 % 4.32 % 4.35 % 4.35 % 4.46 %yield

Variableinterestrate loans 63 % 63 % 57 % 56 % 57 %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 September 30, 2021 and are separately shownattributable to the FCBP loan portfolio acquired on July 21, 2021, and theCompany's pre-FCBP acquisition loan portfolio.

^b $1.2 billion is attributable to the Seacoast loan portfolio acquired onNovember 12, 2020.

Loans totaled $9.0 billion at December 31, 2021, decreasing $98.9 million compared to the linked quarter, primarily due to a decline in PPP loans of $167.0 million. Excluding PPP loans, loans increased $68.1 million, or 3.1% annualized, from the linked quarter. A high level of paydowns muted loan originations in the fourth quarter. Year-over-year, loans grew $1.8 billion from $7.2 billion as of December 31, 2020 due to the First Choice acquisition, partially offset by a $426.7 million decline in PPP loans. Excluding PPP loans and the impact of our First Choice acquisition, loans increased $553.6 million, or 8.5%, from the prior year quarter. For the quarter ended December 31, 2021 average line draw utilization was 39.9% compared to 38.2% and 38.1% in 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

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

Nonperforming $ 28,024 $ 41,554 $ 42,252 $ 36,659 $ 38,507 loans*

Other real 3,493 3,493 3,612 6,164 5,330 estate

Nonperforming $ 31,517 $ 45,047 $ 45,864 $ 42,823 $ 43,837 assets*



Nonperformingloans to total 0.31 % 0.46 % 0.58 % 0.50 % 0.53 %loans

Nonperformingassets to total 0.23 % 0.35 % 0.44 % 0.42 % 0.45 %assets

Allowance forcredit losses to 1.61 % 1.67 % 1.77 % 1.80 % 1.89 %total loans

Net charge-offs $ 3,263 $ 1,850 $ 869 $ 5,647 $ (612 )(recoveries)

*Excludes government guaranteed balances.

Nonperforming assets decreased $13.5 million to $31.5 million at December 31, 2021 from $45.0 million at September 30, 2021. The decrease was primarily from principal payments and a $3.5 million charge-off on an agricultural loan that went on nonaccrual in a prior period.

The Company recorded a provision benefit of $3.7 million for the fourth quarter 2021, compared to a provision for credit losses of $19.7 million for the linked quarter and $9.5 million for the prior year quarter. The provision for credit losses for the linked and prior year quarters included the establishment of a reserve for the First Choice and Seacoast acquired loan portfolios of $25.4 million and $8.6 million, respectively.

Deposits

The following table presents total deposits for the most recent five quarters.

Quarter ended

September 30, 2021

($ in thousands) December 31, FCBP^a Legacy Consolidated June 30, March 31, December 31, 2021 EFSC^a 2021 2021 2020^b

Noninterest-bearing $ 4,578,436 $ 1,041,622 $ 3,334,091 $ 4,375,713 $ 3,111,581 $ 2,910,216 $ 2,711,828 accounts

Interest-bearingtransaction 2,465,884 317,301 1,936,338 2,253,639 2,013,129 1,990,308 1,768,497 accounts

Money market and 3,691,186 370,179 3,201,073 3,571,252 3,000,460 3,093,569 2,954,969 savings accounts

Brokeredcertificates of 128,970 78,714 50,209 128,923 50,209 50,209 50,209 deposit

Other certificates 479,323 51,832 446,416 498,248 464,125 471,142 499,886 of deposit

Total deposit $ 11,343,799 $ 1,859,648 $ 8,968,127 $ 10,827,775 $ 8,639,504 $ 8,515,444 $ 7,985,389 portfolio



Noninterest-bearingdeposits to total 40.4 % 56.0 % 37.2 % 40.4 % 36.0 % 34.2 % 34.0 %deposits

^aAmounts reported are as of September 30, 2021 and are shown separatelyattributable to the FCBP deposit portfolio acquired on July 21, 2021, and theCompany's pre-FCBP acquisition deposit portfolio.

^b $1.1 billion is attributable to the Seacoast deposit portfolio acquired onNovember 12, 2020.

Total deposits at December 31, 2021 were $11.3 billion, an increase of $0.5 billion from September 30, 2021, and an increase of $3.4 billion from December 31, 2020. The increase from the linked quarter was primarily due to specialty deposits, which increased $350.7 million. The year-over-year increase was primarily due to the First Choice acquisition and the high level of liquidity in the economy.

Core deposits, defined as total deposits excluding time deposits, were $10.7 billion at December 31, 2021, an increase of $534.9 million from the linked quarter, and an increase of $3.3 billion from the prior year period. Noninterest-bearing deposits were $4.6 billion at December 31, 2021, and represented 40% of total deposits at that date. The total cost of deposits was 0.10% for the current quarter compared to 0.11% and 0.17% for the linked and prior year quarters, 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 December September Increase December Increasethousands) 31, 30, (decrease) 31, (decrease) 2021 2021 2020

Deposit )service $ 3,962 $ 4,520 $ (558 ) (12 % $ 3,160 $ 802 25 %charges

Wealthmanagement 2,687 2,573 114 4 % 2,449 238 10 %revenue

Card services 3,223 3,186 37 1 % 2,511 712 28 %revenue

Tax credit 4,374 3,325 1,049 32 % 4,048 326 8 %income

Miscellaneous 8,384 4,015 4,369 109 % 6,338 2,046 32 %income

Totalnoninterest $ 22,630 $ 17,619 $ 5,011 28 % $ 18,506 $ 4,124 22 %income



Total noninterest income for the fourth quarter 2021 was $22.6 million, an increase of $5.0 million from the linked quarter and an increase of $4.1 million from the prior year quarter. The increase from the linked quarter was primarily due to seasonally strong tax credit activity and fees earned on community development investments. Deposit service charges declined from the linked quarter primarily due to a fee waiver provided to First Choice customers during the core conversion process. Additionally, servicing income (included in miscellaneous income) declined $0.6 million from the linked quarter due to accelerated paydowns.

Noninterest Expenses

Noninterest expense was $63.7 million for the fourth quarter 2021, compared to $76.9 million for the linked quarter, and $51.1 million for the fourth quarter 2020. The decrease from the linked quarter was primarily due to a $15.8 million decrease in merger expenses and branch impairment charges. The increase from the prior year quarter is due to the acquisitions of First Choice and Seacoast, partially offset by swap termination charges of $3.2 million that were recognized in the fourth quarter 2020.

For the fourth quarter 2021, the Company's efficiency ratio was 51.1% compared to 66.9% and 53.2% for the linked quarter and prior year quarter, respectively. The Company's core efficiency ratio2 was 49.2% for the quarter ended December 31, 2021, compared to 51.3% for the linked quarter and 50.9% for the prior year quarter.

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

Income Taxes

The Company's effective tax rate was 21% for the fourth quarter of 2021, compared to 24% in the linked quarter and 18% in the prior year quarter. The Company's blended tax rate increased to 25.2% in 2021 from 24.9%, in 2020 due to its expanded geographic footprint and the related state apportionment.

Capital

The following table presents various EFSC capital ratios:

Quarter ended

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

Total risk-based capital to 14.7 % 14.5 % 14.9 15.1 14.9 %risk-weighted assets % %

Tier 1 capital to risk weighted 13.0 % 12.2 % 12.3 12.3 12.1 %assets % %

Common equity tier 1 capital to 11.3 % 11.2 % 11.1 11.0 10.9 %risk-weighted assets % %

Tangible common equity to 8.1 % 8.4 % 8.3 % 8.2 % 8.4 %tangible assets^1

Total equity was $1.5 billion at December 31, 2021, an increase of $89.5 million from September 30, 2021. The Company issued and sold 3,000,000 depositary shares, each representing 1/40th interest in a share of 5% noncumulative, perpetual preferred stock totaling $72.0 million, net of issuance costs, in the fourth quarter 2021. The Company's tangible common book value per share was $28.28, up 3.3% and 11.0% from the linked and prior year quarters, respectively.

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, January 25, 2022. During the call, management will review the fourth quarter and full year 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" beginning prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-888-394-8218 (Conference ID #6577620). A recorded replay of the conference call will be available on the website two hours after the call's completion. Visit https://bit.ly/EFSC4Q2021 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 Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $13.5 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, 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, yields and returns, loan diversification and credit management, shareholder value creation and the impact of the First Choice acquisition and other 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. Factors that could cause or contribute to such differences include, but are not limited to, the Company's ability to efficiently integrate acquisitions, including the First Choice acquisition, 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 conditions, risks associated with rapid increases or decreases in prevailing interest rates, 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 regulatory requirements, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase-out of LIBOR, natural disasters, war or terrorist activities, or pandemics, including the COVID-19 pandemic, and their effects on economic and business environments in which we operate including the ongoing disruption to the financial market and other economic activity caused by the COVID-19 pandemic, 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 Reports on Form 10-K for the fiscal year ended December 31, 2020, and the Company's other filings with the SEC. 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.

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

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

EARNINGS SUMMARY

Net interest $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 360,194 $ 270,001 income

Provision(benefit) for (3,660 ) 19,668 (2,669 ) 46 9,463 13,385 65,398 credit losses

Noninterest 22,630 17,619 16,204 11,290 18,506 67,743 54,503 income

Noninterest 63,694 76,885 52,456 52,884 51,050 245,919 167,159 expense

Income beforeincome tax 64,656 18,339 48,155 37,483 35,439 168,633 91,947 expense

Income tax 13,845 4,426 9,750 7,557 6,508 35,578 17,563 expense

Net income $ 50,811 $ 13,913 $ 38,405 $ 29,926 $ 28,931 $ 133,055 $ 74,384



Dilutedearnings per $ 1.33 $ 0.38 $ 1.23 $ 0.96 $ 1.00 $ 3.86 $ 2.76 share

Return on 1.52 % 0.45 % 1.50 % 1.22 % 1.26 % 1.16 % 0.90 %average assets

Return onaverage common 13.81 % 3.96 % 13.79 % 11.07 % 11.60 % 10.49 % 8.24 %equity

Return onaverage 18.81 % 5.37 % 18.44 % 14.92 % 15.73 % 14.18 % 11.23 %tangible commonequity

Net interestmargin (tax 3.32 % 3.40 % 3.46 % 3.50 % 3.66 % 3.41 % 3.56 %equivalent)

Efficiency 51.08 % 66.92 % 53.56 % 58.49 % 53.20 % 57.47 % 51.51 %ratio

Core efficiency 49.22 % 51.30 % 51.86 % 55.02 % 50.93 % 51.61 % 50.96 %ratio^1



Total loans $ 9,017,642 $ 9,116,583 $ 7,226,267 $ 7,288,781 $ 7,224,935

Total average $ 9,030,982 $ 8,666,353 $ 7,306,471 $ 7,192,776 $ 6,780,701 $ 8,055,873 $ 6,071,496 loans

Total assets $ 13,537,358 $ 12,888,016 $ 10,346,993 $ 10,190,699 $ 9,751,571

Total average $ 13,267,193 $ 12,334,558 $ 10,281,344 $ 9,940,052 $ 9,141,159 $ 11,467,310 $ 8,253,913 assets

Total deposits $ 11,343,799 $ 10,827,775 $ 8,639,504 $ 8,515,444 $ 7,985,389

Total average $ 11,167,003 $ 10,297,153 $ 8,580,211 $ 8,207,379 $ 7,311,074 $ 9,573,056 $ 6,593,893 deposits

Period endcommon shares 37,820 38,372 31,185 31,259 31,210 outstanding

Dividends per $ 0.20 $ 0.19 $ 0.18 $ 0.18 $ 0.18 $ 0.75 $ 0.72 common share

Tangible bookvalue per $ 28.28 $ 27.38 $ 26.85 $ 25.92 $ 25.48 common share

Tangible commonequity to 8.13 % 8.40 % 8.32 % 8.18 % 8.40 % tangible assets^1

Totalrisk-basedcapital to 14.7 % 14.5 % 14.9 % 15.1 % 14.9 % 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

Year ended

($ in thousands, except per share data)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Dec 31, 2021

Dec 31, 2020

INCOME STATEMENTS

NET INTEREST INCOME

Total interest income

$

107,641

$

103,228

$

87,401

$

84,960

$

84,113

$

383,230

$

304,779

Total interest expense

5,581

5,955

5,663

5,837

6,667

23,036

34,778

Net interest income

102,060

97,273

81,738

79,123

77,446

360,194

270,001

Provision (benefit) for credit losses

(3,660

)

19,668

(2,669

)

46

9,463

13,385

65,398

Net interest income after provision for credit losses

105,720

77,605

84,407

79,077

67,983

346,809

204,603

NONINTEREST INCOME

Deposit service charges

3,962

4,520

3,862

3,084

3,160

15,428

11,717

Wealth management revenue

2,687

2,573

2,516

2,483

2,449

10,259

9,732

Card services revenue

3,223

3,186

2,975

2,496

2,511

11,880

9,481

Tax credit income (expense)

4,374

3,325

1,370

(1,041

)

4,048

8,028

6,611

Other income

8,384

4,015

5,481

4,268

6,338

22,148

16,962

Total noninterest income

22,630

17,619

16,204

11,290

18,506

67,743

54,503

NONINTEREST EXPENSE

Employee compensation and benefits

33,488

33,722

28,132

29,562

26,174

124,904

92,288

Occupancy

4,510

4,496

3,529

3,751

3,517

16,286

13,457

Branch-closure expenses

-

3,441

-

-

-

3,441

-

Merger-related expenses

2,320

14,671

1,949

3,142

2,611

22,082

4,174

Other

23,376

20,555

18,846

16,429

18,748

79,206

57,240

Total noninterest expenses

63,694

76,885

52,456

52,884

51,050

245,919

167,159

Income before income tax expense

64,656

18,339

48,155

37,483

35,439

168,633

91,947

Income tax expense

13,845

4,426

9,750

7,557

6,508

35,578

17,563

Net income

$

50,811

$

13,913

$

38,405

$

29,926

$

28,931

$

133,055

$

74,384

Basic earnings per share

$

1.33

$

0.38

$

1.23

$

0.96

$

1.00

$

3.86

$

2.76

Diluted earnings per share

$

1.33

$

0.38

$

1.23

$

0.96

$

1.00

$

3.86

$

2.76

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended Year ended

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

INCOME STATEMENTS

NET INTEREST INCOME

Total interest $ 107,641 $ 103,228 $ 87,401 $ 84,960 $ 84,113 $ 383,230 $ 304,779income

Total interest 5,581 5,955 5,663 5,837 6,667 23,036 34,778expense

Net interest 102,060 97,273 81,738 79,123 77,446 360,194 270,001income

Provision(benefit) for (3,660 ) 19,668 (2,669 ) 46 9,463 13,385 65,398credit losses

Net interestincome after 105,720 77,605 84,407 79,077 67,983 346,809 204,603provision forcredit losses



NONINTEREST INCOME

Depositservice 3,962 4,520 3,862 3,084 3,160 15,428 11,717charges

Wealthmanagement 2,687 2,573 2,516 2,483 2,449 10,259 9,732revenue

Card services 3,223 3,186 2,975 2,496 2,511 11,880 9,481revenue

Tax creditincome 4,374 3,325 1,370 (1,041 ) 4,048 8,028 6,611(expense)

Other income 8,384 4,015 5,481 4,268 6,338 22,148 16,962

Totalnoninterest 22,630 17,619 16,204 11,290 18,506 67,743 54,503income



NONINTEREST EXPENSE

Employeecompensation 33,488 33,722 28,132 29,562 26,174 124,904 92,288and benefits

Occupancy 4,510 4,496 3,529 3,751 3,517 16,286 13,457

Branch-closure - 3,441 - - - 3,441 -expenses

Merger-related 2,320 14,671 1,949 3,142 2,611 22,082 4,174expenses

Other 23,376 20,555 18,846 16,429 18,748 79,206 57,240

Totalnoninterest 63,694 76,885 52,456 52,884 51,050 245,919 167,159expenses



Income beforeincome tax 64,656 18,339 48,155 37,483 35,439 168,633 91,947expense

Income tax 13,845 4,426 9,750 7,557 6,508 35,578 17,563expense

Net income $ 50,811 $ 13,913 $ 38,405 $ 29,926 $ 28,931 $ 133,055 $ 74,384



Basic earnings $ 1.33 $ 0.38 $ 1.23 $ 0.96 $ 1.00 $ 3.86 $ 2.76per share

Dilutedearnings per $ 1.33 $ 0.38 $ 1.23 $ 0.96 $ 1.00 $ 3.86 $ 2.76share

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

($ in thousands)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

BALANCE SHEETS

ASSETS

Cash and due from banks

$

209,177

$

179,826

$

126,789

$

103,367

$

99,760

Interest-earning deposits

1,819,508

1,216,470

889,960

788,464

445,569

Debt and equity investments

1,855,583

1,717,442

1,585,847

1,463,818

1,448,803

Loans held for sale

6,389

5,068

5,763

8,531

13,564

Loans

9,017,642

9,116,583

7,226,267

7,288,781

7,224,935

Allowance for credit losses on loans

(145,041

)

(152,096

)

(128,185

)

(131,527

)

(136,671

)

Total loans, net

8,872,601

8,964,487

7,098,082

7,157,254

7,088,264

Fixed assets, net

47,915

48,697

50,972

52,078

53,169

Goodwill

365,164

365,415

260,567

260,567

260,567

Intangible assets, net

22,286

23,777

20,358

21,670

23,084

Other assets

338,735

366,834

308,655

334,950

318,791

Total assets

$

13,537,358

$

12,888,016

$

10,346,993

$

10,190,699

$

9,751,571

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

$

4,578,436

$

4,375,713

$

3,111,581

$

2,910,216

$

2,711,828

Interest-bearing deposits

6,765,363

6,452,062

5,527,923

5,605,228

5,273,561

Total deposits

11,343,799

10,827,775

8,639,504

8,515,444

7,985,389

Subordinated debentures

154,899

204,103

203,940

203,778

203,637

FHLB advances

50,000

50,000

50,000

50,000

50,000

Other borrowings

353,863

243,770

234,509

229,389

301,081

Other liabilities

105,681

122,733

100,739

99,591

132,489

Total liabilities

12,008,242

11,448,381

9,228,692

9,098,202

8,672,596

Shareholders' equity:

Preferred stock

71,988

-

-

-

-

Common stock

398

404

330

332

332

Treasury stock

(73,528

)

(73,528

)

(73,528

)

(73,528

)

(73,528

)

Additional paid in capital

1,018,799

1,031,146

688,945

698,005

697,839

Retained earnings

492,682

461,711

474,282

441,511

417,212

Accumulated other comprehensive income

18,777

19,902

28,272

26,177

37,120

Total shareholders' equity

1,529,116

1,439,635

1,118,301

1,092,497

1,078,975

Total liabilities and shareholders' equity

$

13,537,358

$

12,888,016

$

10,346,993

$

10,190,699

$

9,751,571

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.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

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

BALANCE SHEETS

ASSETS

Cash and due from $ 209,177 $ 179,826 $ 126,789 $ 103,367 $ 99,760 banks

Interest-earning 1,819,508 1,216,470 889,960 788,464 445,569 deposits

Debt and equity 1,855,583 1,717,442 1,585,847 1,463,818 1,448,803 investments

Loans held for sale 6,389 5,068 5,763 8,531 13,564



Loans 9,017,642 9,116,583 7,226,267 7,288,781 7,224,935

Allowance for credit (145,041 ) (152,096 ) (128,185 ) (131,527 ) (136,671 )losses on loans

Total loans, net 8,872,601 8,964,487 7,098,082 7,157,254 7,088,264



Fixed assets, net 47,915 48,697 50,972 52,078 53,169

Goodwill 365,164 365,415 260,567 260,567 260,567

Intangible assets, 22,286 23,777 20,358 21,670 23,084 net

Other assets 338,735 366,834 308,655 334,950 318,791

Total assets $ 13,537,358 $ 12,888,016 $ 10,346,993 $ 10,190,699 $ 9,751,571



LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing $ 4,578,436 $ 4,375,713 $ 3,111,581 $ 2,910,216 $ 2,711,828 deposits

Interest-bearing 6,765,363 6,452,062 5,527,923 5,605,228 5,273,561 deposits

Total deposits 11,343,799 10,827,775 8,639,504 8,515,444 7,985,389

Subordinated 154,899 204,103 203,940 203,778 203,637 debentures

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

Other borrowings 353,863 243,770 234,509 229,389 301,081

Other liabilities 105,681 122,733 100,739 99,591 132,489

Total liabilities 12,008,242 11,448,381 9,228,692 9,098,202 8,672,596

Shareholders' equity:

Preferred stock 71,988 - - - -

Common stock 398 404 330 332 332

Treasury stock (73,528 ) (73,528 ) (73,528 ) (73,528 ) (73,528 )

Additional paid in 1,018,799 1,031,146 688,945 698,005 697,839 capital

Retained earnings 492,682 461,711 474,282 441,511 417,212

Accumulated other 18,777 19,902 28,272 26,177 37,120 comprehensive income

Total shareholders' 1,529,116 1,439,635 1,118,301 1,092,497 1,078,975 equity

Total liabilities and $ 13,537,358 $ 12,888,016 $ 10,346,993 $ 10,190,699 $ 9,751,571 shareholders' equity

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.

Year ended

December 31, 2021 December 31, 2020

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

Assets

Interest-earning assets:

Loans* $ 8,055,873 $ 349,112 4.33 % $ 6,071,496 $ 270,673 4.46 %

Debt and equity 1,567,993 37,773 2.41 1,366,601 36,675 2.68 investments*

Short-term 1,084,853 1,496 0.14 228,760 620 0.27 investments

Total earning 10,708,719 388,381 3.63 7,666,857 307,968 4.02 assets



Noninterest-earning 758,591 587,057 assets



Total assets $ 11,467,310 $ 8,253,914



Liabilities andShareholders' Equity

Interest-bearing liabilities:

Interest-bearingtransaction $ 2,122,752 $ 1,614 0.08 % $ 1,494,364 $ 2,101 0.14 %accounts

Money market 2,557,836 4,669 0.18 1,977,826 7,754 0.39 accounts

Savings 724,768 225 0.03 589,832 279 0.05

Certificates of 570,496 4,160 0.73 676,889 10,915 1.61 deposit

Totalinterest-bearing 5,975,852 10,668 0.18 4,738,911 21,049 0.44 deposits

Subordinated 195,686 10,960 5.60 179,534 9,885 5.51 debentures

FHLB advances 59,945 803 1.34 241,635 2,673 1.11

Securities soldunder agreements to 225,895 235 0.10 206,338 542 0.26 repurchase

Other borrowings 26,427 370 1.40 32,147 629 1.96

Totalinterest-bearing 6,483,805 23,036 0.36 5,398,565 34,778 0.64 liabilities



Noninterest-bearing liabilities:

Demand deposits 3,597,204 1,854,982

Other liabilities 109,148 97,492

Total liabilities 10,190,157 7,351,039

Shareholders' 1,277,153 902,875 equity

Total liabilitiesand shareholders' $ 11,467,310 $ 8,253,914 equity



Total net interest $ 365,345 $ 273,190 income

Net interest margin 3.41 % 3.56 %

* Non-taxable income is presented on a tax-equivalent basis using a 25.2% and24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustmentswere $5.2 million, and $3.2 million for the years ended December 31, 2021, and2020, respectively.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

($ in thousands)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

LOAN PORTFOLIO

Commercial and industrial

$

3,392,375

$

3,379,171

$

2,930,805

$

3,079,643

$

3,088,995

Commercial real estate

4,176,928

4,179,712

3,200,748

3,186,970

3,087,827

Construction real estate

734,073

747,758

556,776

510,501

546,686

Residential real estate

454,052

542,690

305,497

303,047

319,179

Other

260,214

267,252

232,441

208,620

182,248

Total loans

$

9,017,642

$

9,116,583

$

7,226,267

$

7,288,781

$

7,224,935

DEPOSIT PORTFOLIO

Noninterest-bearing accounts

$

4,578,436

$

4,375,713

$

3,111,581

$

2,910,216

$

2,711,828

Interest-bearing transaction accounts

2,465,884

2,253,639

2,013,129

1,990,308

1,768,497

Money market and savings accounts

3,691,186

3,571,252

3,000,460

3,093,569

2,954,969

Brokered certificates of deposit

128,970

128,923

50,209

50,209

50,209

Other certificates of deposit

479,323

498,248

464,125

471,142

499,886

Total deposit portfolio

$

11,343,799

$

10,827,775

$

8,639,504

$

8,515,444

$

7,985,389

AVERAGE BALANCES

Total loans

$

9,030,982

$

8,666,353

$

7,306,471

$

7,192,776

$

6,780,701

Debt and equity investments

1,753,159

1,594,938

1,502,582

1,417,305

1,395,806

Interest-earning assets

12,373,149

11,513,279

9,615,981

9,289,741

8,524,136

Total assets

13,267,193

12,334,558

10,281,344

9,940,052

9,141,159

Deposits

11,167,003

10,297,153

8,580,211

8,207,379

7,311,074

Shareholders' equity

1,495,396

1,394,096

1,116,969

1,096,481

992,017

Tangible common equity1

1,071,902

1,028,001

835,405

813,568

731,813

YIELDS (tax equivalent)

Total loans

4.32

%

4.32

%

4.35

%

4.35

%

4.46

%

Debt and equity investments

2.30

2.38

2.46

2.52

2.56

Interest-earning assets

3.50

3.60

3.70

3.76

3.97

Interest-bearing deposits

0.17

0.17

0.18

0.20

0.25

Total deposits

0.10

0.11

0.12

0.13

0.17

Subordinated debentures

5.64

5.55

5.60

5.61

5.52

FHLB advances and other borrowed funds

0.43

0.43

0.49

0.46

0.61

Interest-bearing liabilities

0.31

0.35

0.37

0.40

0.47

Net interest margin

3.32

3.40

3.46

3.50

3.66

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

LOAN PORTFOLIO

Commercial and $ 3,392,375 $ 3,379,171 $ 2,930,805 $ 3,079,643 $ 3,088,995 industrial

Commercial real 4,176,928 4,179,712 3,200,748 3,186,970 3,087,827 estate

Construction real 734,073 747,758 556,776 510,501 546,686 estate

Residential real 454,052 542,690 305,497 303,047 319,179 estate

Other 260,214 267,252 232,441 208,620 182,248

Total loans $ 9,017,642 $ 9,116,583 $ 7,226,267 $ 7,288,781 $ 7,224,935



DEPOSIT PORTFOLIO

Noninterest-bearing $ 4,578,436 $ 4,375,713 $ 3,111,581 $ 2,910,216 $ 2,711,828 accounts

Interest-bearing 2,465,884 2,253,639 2,013,129 1,990,308 1,768,497 transaction accounts

Money market and 3,691,186 3,571,252 3,000,460 3,093,569 2,954,969 savings accounts

Brokeredcertificates of 128,970 128,923 50,209 50,209 50,209 deposit

Other certificates 479,323 498,248 464,125 471,142 499,886 of deposit

Total deposit $ 11,343,799 $ 10,827,775 $ 8,639,504 $ 8,515,444 $ 7,985,389 portfolio



AVERAGE BALANCES

Total loans $ 9,030,982 $ 8,666,353 $ 7,306,471 $ 7,192,776 $ 6,780,701

Debt and equity 1,753,159 1,594,938 1,502,582 1,417,305 1,395,806 investments

Interest-earning 12,373,149 11,513,279 9,615,981 9,289,741 8,524,136 assets

Total assets 13,267,193 12,334,558 10,281,344 9,940,052 9,141,159

Deposits 11,167,003 10,297,153 8,580,211 8,207,379 7,311,074

Shareholders' equity 1,495,396 1,394,096 1,116,969 1,096,481 992,017

Tangible common 1,071,902 1,028,001 835,405 813,568 731,813 equity^1



YIELDS (tax equivalent)

Total loans 4.32 % 4.32 % 4.35 % 4.35 % 4.46 %

Debt and equity 2.30 2.38 2.46 2.52 2.56 investments

Interest-earning 3.50 3.60 3.70 3.76 3.97 assets

Interest-bearing 0.17 0.17 0.18 0.20 0.25 deposits

Total deposits 0.10 0.11 0.12 0.13 0.17

Subordinated 5.64 5.55 5.60 5.61 5.52 debentures

FHLB advances and 0.43 0.43 0.49 0.46 0.61 other borrowed funds

Interest-bearing 0.31 0.35 0.37 0.40 0.47 liabilities

Net interest margin 3.32 3.40 3.46 3.50 3.66

^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)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

ASSET QUALITY

Net charge-offs (recoveries)

$

3,263

$

1,850

$

869

$

5,647

$

(612

)

Nonperforming loans

28,024

41,554

42,252

36,659

38,507

Classified assets

100,797

104,220

100,063

114,713

123,808

Nonperforming loans to total loans

0.31

%

0.46

%

0.58

%

0.50

%

0.53

%

Nonperforming assets to total assets

0.23

%

0.35

%

0.44

%

0.42

%

0.45

%

Allowance for credit losses to total loans

1.61

%

1.67

%

1.77

%

1.80

%

1.89

%

Allowance for credit losses to nonperforming loans

517.6

%

366.0

%

303.4

%

358.8

%

354.9

%

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

0.14

%

0.08

%

0.05

%

0.32

%

(0.04

)%

WEALTH MANAGEMENT

Trust assets under management

$

2,083,543

$

2,017,178

$

1,945,293

$

1,809,001

$

1,783,089

Trust assets under administration

2,556,266

2,486,152

2,487,545

2,427,448

2,504,318

MARKET DATA

Book value per common share

$

38.53

$

37.52

$

35.86

$

34.95

$

34.57

Tangible book value per common share1

$

28.28

$

27.38

$

26.85

$

25.92

$

25.48

Market value per share

$

47.09

$

45.28

$

46.39

$

49.44

$

34.95

Period end common shares outstanding

37,820

38,372

31,185

31,259

31,210

Average basic common shares

38,228

36,878

31,265

31,247

28,929

Average diluted common shares

38,311

36,946

31,312

31,306

28,968

CAPITAL

Total risk-based capital to risk-weighted assets

14.7

%

14.5

%

14.9

%

15.1

%

14.9

%

Tier 1 capital to risk-weighted assets

13.0

%

12.2

%

12.3

%

12.3

%

12.1

%

Common equity tier 1 capital to risk-weighted assets

11.3

%

11.2

%

11.1

%

11.0

%

10.9

%

Tangible common equity to tangible assets1

8.1

%

8.4

%

8.3

%

8.2

%

8.4

%

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

ASSET QUALITY

Net charge-offs $ 3,263 $ 1,850 $ 869 $ 5,647 $ (612 )(recoveries)

Nonperforming 28,024 41,554 42,252 36,659 38,507 loans

Classified assets 100,797 104,220 100,063 114,713 123,808

Nonperformingloans to total 0.31 % 0.46 % 0.58 % 0.50 % 0.53 %loans

Nonperformingassets to total 0.23 % 0.35 % 0.44 % 0.42 % 0.45 %assets

Allowance forcredit losses to 1.61 % 1.67 % 1.77 % 1.80 % 1.89 %total loans

Allowance forcredit losses to 517.6 % 366.0 % 303.4 % 358.8 % 354.9 %nonperformingloans

Net charge-offs(recoveries) to 0.14 % 0.08 % 0.05 % 0.32 % (0.04 )average loans %(annualized)



WEALTH MANAGEMENT

Trust assets $ 2,083,543 $ 2,017,178 $ 1,945,293 $ 1,809,001 $ 1,783,089 under management

Trust assetsunder 2,556,266 2,486,152 2,487,545 2,427,448 2,504,318 administration



MARKET DATA

Book value per $ 38.53 $ 37.52 $ 35.86 $ 34.95 $ 34.57 common share

Tangible bookvalue per common $ 28.28 $ 27.38 $ 26.85 $ 25.92 $ 25.48 share^1

Market value per $ 47.09 $ 45.28 $ 46.39 $ 49.44 $ 34.95 share

Period end commonshares 37,820 38,372 31,185 31,259 31,210 outstanding

Average basic 38,228 36,878 31,265 31,247 28,929 common shares

Average diluted 38,311 36,946 31,312 31,306 28,968 common shares



CAPITAL

Total risk-basedcapital to 14.7 % 14.5 % 14.9 % 15.1 % 14.9 %risk-weightedassets

Tier 1 capital torisk-weighted 13.0 % 12.2 % 12.3 % 12.3 % 12.1 %assets

Common equitytier 1 capital to 11.3 % 11.2 % 11.1 % 11.0 % 10.9 %risk-weightedassets

Tangible commonequity to 8.1 % 8.4 % 8.3 % 8.2 % 8.4 %tangible assets^1



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

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

Quarter ended

Year ended

($ in thousands, except per share data)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Dec 31, 2021

Dec 31, 2020

CORE PERFORMANCE MEASURES

Net interest income

$

102,060

$

97,273

$

81,738

$

79,123

$

77,446

$

360,194

$

270,001

Less incremental accretion income

-

-

-

-

856

-

4,083

Core net interest income

102,060

97,273

81,738

79,123

76,590

360,194

265,918

Total noninterest income

22,630

17,619

16,204

11,290

18,506

67,743

54,503

Less gain on sale of investment securities

-

-

-

-

-

-

421

Less gain on sale of other real estate owned

-

335

549

-

-

884

-

Less other non-core income

-

-

-

-

-

-

265

Core noninterest income

22,630

17,284

15,655

11,290

18,506

66,859

53,817

Total core revenue

124,690

114,557

97,393

90,413

95,096

427,053

319,735

Total noninterest expense

63,694

76,885

52,456

52,884

51,050

245,919

167,159

Less other expenses related to non-core acquired loans

-

-

-

-

8

-

57

Less branch-closure expenses

-

3,441

-

-

-

3,441

-

Less merger-related expenses

2,320

14,671

1,949

3,142

2,611

22,082

4,174

Core noninterest expense

61,374

58,773

50,507

49,742

48,431

220,396

162,928

Core efficiency ratio

49.22

%

51.30

%

51.86

%

55.02

%

50.93

%

51.61

%

50.96

%

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

Quarter ended Year ended

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

CORE PERFORMANCE MEASURES

Net interest $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 360,194 $ 270,001 income

Less incremental - - - - 856 - 4,083 accretion income

Core net 102,060 97,273 81,738 79,123 76,590 360,194 265,918 interest income



Totalnoninterest 22,630 17,619 16,204 11,290 18,506 67,743 54,503 income

Less gain onsale of - - - - - - 421 investmentsecurities

Less gain onsale of other - 335 549 - - 884 - real estateowned

Less other - - - - - - 265 non-core income

Core noninterest 22,630 17,284 15,655 11,290 18,506 66,859 53,817 income



Total core 124,690 114,557 97,393 90,413 95,096 427,053 319,735 revenue



Totalnoninterest 63,694 76,885 52,456 52,884 51,050 245,919 167,159 expense

Less otherexpenses related - - - - 8 - 57 to non-coreacquired loans

Lessbranch-closure - 3,441 - - - 3,441 - expenses

Lessmerger-related 2,320 14,671 1,949 3,142 2,611 22,082 4,174 expenses

Core noninterest 61,374 58,773 50,507 49,742 48,431 220,396 162,928 expense



Core efficiency 49.22 % 51.30 % 51.86 % 55.02 % 50.93 % 51.61 % 50.96 %ratio

Quarter ended

($ in thousands)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

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

Shareholders' equity

$

1,529,116

$

1,439,635

$

1,118,301

$

1,092,497

$

1,078,975

Less preferred stock

71,988

-

-

-

-

Less goodwill

365,164

365,415

260,567

260,567

260,567

Less intangible assets

22,286

23,777

20,358

21,670

23,084

Tangible common equity

$

1,069,678

$

1,050,443

$

837,376

$

810,260

$

795,324

Total assets

$

13,537,358

$

12,888,016

$

10,346,993

$

10,190,699

$

9,751,571

Less goodwill

365,164

365,415

260,567

260,567

260,567

Less intangible assets

22,286

23,777

20,358

21,670

23,084

Tangible assets

$

13,149,908

$

12,498,824

$

10,066,068

$

9,908,462

$

9,467,920

Tangible common equity to tangible assets

8.13

%

8.40

%

8.32

%

8.18

%

8.40

%

Quarter ended

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

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

Shareholders' $ 1,529,116 $ 1,439,635 $ 1,118,301 $ 1,092,497 $ 1,078,975 equity

Less preferred 71,988 - - - - stock

Less goodwill 365,164 365,415 260,567 260,567 260,567

Less intangible 22,286 23,777 20,358 21,670 23,084 assets

Tangible common $ 1,069,678 $ 1,050,443 $ 837,376 $ 810,260 $ 795,324 equity



Total assets $ 13,537,358 $ 12,888,016 $ 10,346,993 $ 10,190,699 $ 9,751,571

Less goodwill 365,164 365,415 260,567 260,567 260,567

Less intangible 22,286 23,777 20,358 21,670 23,084 assets

Tangible assets $ 13,149,908 $ 12,498,824 $ 10,066,068 $ 9,908,462 $ 9,467,920



Tangible commonequity to 8.13 % 8.40 % 8.32 % 8.18 % 8.40 %tangible assets

Quarter ended

($ in thousands)

Dec 31, 2021

Sep 30, 2021

Dec 31, 2020

AVERAGE SHAREHOLDERS' EQUITY AND AVERAGE TANGIBLE COMMON EQUITY

Average shareholder's equity

$

1,495,396

$

1,394,096

$

992,017

Less average preferred stock

35,322

-

-

Less average goodwill

365,164

342,622

237,639

Less average intangible assets

23,008

23,473

22,565

Average tangible common equity

$

1,071,902

$

1,028,001

$

731,813

Quarter ended

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

AVERAGE SHAREHOLDERS' EQUITY AND AVERAGE TANGIBLE COMMON EQUITY

Average shareholder's equity $ 1,495,396 $ 1,394,096 $ 992,017

Less average preferred stock 35,322 - -

Less average goodwill 365,164 342,622 237,639

Less average intangible assets 23,008 23,473 22,565

Average tangible common equity $ 1,071,902 $ 1,028,001 $ 731,813



Quarter Ended

Year ended

($ in thousands)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Dec 31, 2021

Dec 31, 2020

CALCULATION OF PRE-PROVISION NET REVENUE

Net interest income

$

102,060

$

97,273

$

81,738

$

79,123

$

77,446

$

360,194

$

270,001

Noninterest income

22,630

17,619

16,204

11,290

18,506

67,742

54,503

Less noninterest expense

63,694

76,885

52,456

52,884

51,050

245,918

167,159

Branch-closure expenses

-

3,441

-

-

-

3,441

-

Merger-related expenses

2,320

14,671

1,949

3,142

2,611

22,082

4,174

PPNR

$

63,316

$

56,119

$

47,435

$

40,671

$

47,513

$

207,541

$

161,519

Average assets

$

13,267,193

$

12,334,558

$

10,281,344

$

9,940,052

$

9,141,159

$

11,467,310

$

8,253,913

ROAA - GAAP net income

1.52

%

0.45

%

1.50

%

1.22

%

1.26

%

1.16

%

0.90

%

PPNR ROAA - PPNR

1.89

%

1.81

%

1.85

%

1.66

%

2.07

%

1.81

%

1.96

%

Quarter Ended Year ended

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

CALCULATION OF PRE-PROVISION NET REVENUE

Net interest income $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 360,194 $ 270,001

Noninterest income 22,630 17,619 16,204 11,290 18,506 67,742 54,503

Less noninterest 63,694 76,885 52,456 52,884 51,050 245,918 167,159 expense

Branch-closure - 3,441 - - - 3,441 - expenses

Merger-related 2,320 14,671 1,949 3,142 2,611 22,082 4,174 expenses

PPNR $ 63,316 $ 56,119 $ 47,435 $ 40,671 $ 47,513 $ 207,541 $ 161,519



Average assets $ 13,267,193 $ 12,334,558 $ 10,281,344 $ 9,940,052 $ 9,141,159 $ 11,467,310 $ 8,253,913

ROAA - GAAP net 1.52 % 0.45 % 1.50 % 1.22 % 1.26 % 1.16 % 0.90 %income

PPNR ROAA - PPNR 1.89 % 1.81 % 1.85 % 1.66 % 2.07 % 1.81 % 1.96 %

Quarter Ended

($ in thousands, except per share data)

Dec 31, 2021

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

IMPACT OF PAYCHECK PROTECTION PROGRAM

Net income - GAAP

$

50,811

$

13,913

$

38,405

$

29,926

$

28,931

PPP interest and fee income

(4,864

)

(6,048

)

(7,940

)

(8,475

)

(10,261

)

Related tax effect

1,226

1,506

1,977

2,110

2,534

Adjusted net income - Non-GAAP

$

47,173

$

9,371

$

32,442

$

23,561

$

21,204

Average diluted common shares

38,311

36,946

31,312

31,303

28,968

EPS - GAAP net income

$

1.33

$

0.38

$

1.23

$

0.96

$

1.00

EPS - Adjusted net income

$

1.23

$

0.25

$

1.04

$

0.75

$

0.73

Average assets - GAAP

$

13,267,193

$

12,334,558

$

10,281,344

$

9,940,052

$

9,141,159

Average PPP loans, net

(365,295

)

(489,104

)

(664,375

)

(692,161

)

(806,697

)

Adjusted average assets - Non-GAAP

$

12,901,898

$

11,845,454

$

9,616,969

$

9,247,891

$

8,334,462

ROAA - GAAP net income

1.52

%

0.45

%

1.50

%

1.22

%

1.26

%

ROAA - Adjusted net income, adjusted average assets

1.45

%

0.31

%

1.35

%

1.03

%

1.01

%

PPNR - Non-GAAP (see reconciliation above)

$

63,316

$

56,119

$

47,435

$

40,671

$

47,513

PPP interest and fee income

(4,864

)

(6,048

)

(7,940

)

(8,475

)

(10,261

)

Adjusted PPNR - Non-GAAP

$

58,452

$

50,071

$

39,495

$

32,196

$

37,252

PPNR ROAA - PPNR

1.89

%

1.81

%

1.85

%

1.66

%

2.07

%

PPNR ROAA - adjusted PPNR, adjusted average assets

1.80

%

1.68

%

1.65

%

1.41

%

1.78

%

Tangible assets - Non-GAAP (see reconciliation above)

$

13,149,908

$

12,498,824

$

10,066,068

$

9,908,462

$

9,467,920

PPP loans outstanding, net

(271,958

)

(438,959

)

(396,660

)

(737,660

)

(698,645

)

Adjusted tangible assets - Non-GAAP

$

12,877,950

$

12,059,865

$

9,669,408

$

9,170,802

$

8,769,275

Tangible common equity Non - GAAP (see reconciliation above)

$

1,069,678

$

1,050,443

$

837,376

$

810,260

$

795,324

Tangible common equity to tangible assets

8.13

%

8.40

%

8.32

%

8.18

%

8.40

%

Tangible common equity to tangible assets - adjusted tangible assets

8.31

%

8.71

%

8.66

%

8.84

%

9.07

%

Average assets for leverage ratio

$

12,915,944

$

11,972,171

$

10,021,240

$

9,675,300

$

8,868,548

Average PPP loans, net

(365,295

)

(489,104

)

(664,375

)

(692,161

)

(806,697

)

Adjusted average assets for leverage ratio - Non-GAAP

$

12,550,649

$

11,483,067

$

9,356,865

$

8,983,139

$

8,061,851

Tier 1 capital

$

1,257,462

$

1,166,529

$

937,840

$

914,459

$

889,527

Leverage ratio

9.7

%

9.7

%

9.4

%

9.5

%

10.0

%

Leverage ratio - adjusted average assets for leverage ratio

10.0

%

10.2

%

10.0

%

10.2

%

11.0

%

Net interest income - tax equivalent

$

103,567

$

98,573

$

82,962

$

80,243

$

78,483

PPP interest and fee income

(4,864

)

(6,048

)

(7,940

)

(8,475

)

(10,261

)

Adjusted net interest income - tax equivalent

$

98,703

$

92,525

$

75,022

$

71,768

$

68,222

Average earning assets -GAAP

$

12,373,149

$

11,513,279

$

9,615,981

$

9,289,741

$

8,524,136

Average PPP loans, net

(365,295

)

(489,104

)

(664,375

)

(692,161

)

(806,697

)

Adjusted average earning assets - Non-GAAP

$

12,007,854

$

11,024,175

$

8,951,606

$

8,597,580

$

7,717,439

Net interest margin - tax equivalent

3.32

%

3.40

%

3.46

%

3.50

%

3.66

%

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

3.26

%

3.33

%

3.36

%

3.39

%

3.52

%

Loans - GAAP

$

9,017,642

$

9,116,583

$

7,226,267

$

7,288,781

$

7,224,935

PPP and other guaranteed loans, net

(1,151,895

)

(1,277,452

)

(1,106,414

)

(1,377,302

)

(1,297,212

)

Adjusted loans - Non-GAAP

$

7,865,747

$

7,839,131

$

6,119,853

$

5,911,479

$

5,927,723

Allowance for credit losses

$

145,041

$

152,096

$

128,185

$

131,527

$

136,671

Allowance for credit losses/loans - GAAP

1.61

%

1.67

%

1.77

%

1.80

%

1.89

%

Allowance for credit losses/loans - adjusted loans

1.84

%

1.94

%

2.09

%

2.22

%

2.31

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20220124005694/en/

CONTACT: Investor Relations: Keene Turner, Executive Vice President and CFO (314) 512-7233 Media: Steve Richardson, SVP Corporate Communications (314) 995-5695