Enterprise Financial Reports Third Quarter 2020 Results

ST. LOUIS–(BUSINESS WIRE)–Enterprise Monetary Providers Corp (Nasdaq: EFSC) (the “Firm” or “EFSC”) reported web revenue of $18.zero million for the third quarter 2020, a rise of $three.three million in comparison with the linked second quarter (“linked quarter”) and a lower of $11.1 million from the prior yr quarter. Earnings per diluted share (“EPS”) was $zero.68 for the third quarter 2020, in comparison with $zero.56 and $1.08 for the linked and prior yr quarters, respectively. Web revenue and EPS within the present quarter elevated from the linked quarter primarily because of a discount in provision for credit score losses and a rise in noninterest revenue. This improve was partially offset by $1.6 million of merger-related bills. The lower in web revenue and EPS from the prior yr quarter was primarily because of a rise in provision for credit score losses.

Jim Lally, EFSC’s President and Chief Government Officer, commented, “Immediately we reported earnings of $zero.68 per diluted share for the third quarter. These monetary outcomes mirror stable efficiency with pre-provision web income¹ of $38.zero million, or 1.81% of common property. Given the continuing financial uncertainty, we continued to construct our allowance for credit score losses, and our earnings profile allowed us to additionally construct capital through the third quarter. As we transfer into the top of 2020, we stay nicely positioned to proceed to help our prospects, full the acquisition of Seacoast and execute on our enterprise plans.”

Highlights

• Earnings – Web revenue within the third quarter 2020 was $18.zero million, a rise of $three.three million in comparison with the linked quarter and a lower of $11.1 million from the prior yr quarter. EPS was $zero.68 per diluted share for the third quarter 2020, in comparison with $zero.56 and $1.08 per diluted share for the linked and prior yr quarters, respectively.

• Pre-provision web income¹ (“PPNR”) – PPNR (excluding merger-related bills) of $38.zero million within the third quarter 2020 elevated $zero.1 million and decreased $zero.7 million from the linked and prior yr quarters, respectively.

1 PPNR is a nonGAAP measure. Confer with dialogue and reconciliation of those measures within the accompanying monetary tables.

• Web curiosity revenue and web curiosity margin (“NIM”) – Web curiosity revenue of $63.Four million for the third quarter 2020 decreased $2.5 million and elevated $zero.three million, from the linked quarter and prior yr quarter, respectively. NIM was three.29% for the third quarter 2020, in comparison with three.53% and three.81% for the linked quarter and prior yr quarter, respectively.

• Noninterest revenue – Noninterest revenue of $12.6 million for the third quarter 2020 elevated $2.7 million and decreased $zero.9 million from the linked quarter and prior yr quarter, respectively. The present quarter improve was pushed by quantity will increase in deposit providers, card providers, mortgage banking and tax credit score exercise.

• Loans – Whole loans declined $13.7 million, or zero.9% on an annualized foundation, from the linked quarter to $6.1 billion as of September 30, 2020. Yr-over-year, loans grew $898.three million, or 17.2% on an annualized foundation, from $5.2 billion as of September 30, 2019. Common loans totaled $6.1 billion for the quarter ended September 30, 2020 in comparison with $6.zero billion and $5.2 billion for the linked and prior yr quarters, respectively. Paycheck Safety Program (“PPP”) loans primarily contributed to progress within the mortgage portfolio over the prior yr quarter. As of September 30, 2020, mortgage modifications in a deferral standing comprised 2% of the mortgage portfolio.

PPP particulars:

	Quarter ended
($ in hundreds, besides per share knowledge)	September 30, 2020				June 30, 2020
PPP loans excellent, web of unearned charges	$	819,100			$	807,814
Common PPP loans excellent, web	813,244				634,632
PPP common mortgage measurement	216				224
PPP curiosity and payment revenue	5,226				Four,083
PPP unearned charges	19,522				22,414
PPP common yield	2.56		%		2.59		%

	Quarter ended
	September 30, 2020								June 30, 2020
Monetary Metrics:	As Reported				Excluding PPP*				As Reported				Excluding PPP*
EPS	$	zero.68			$	zero.53			$	zero.56			$	zero.44
ROAA	zero.86		%		zero.74		%		zero.72		%		zero.62		%
PPNR ROAA (excluding merger-related exp)	1.81		%		1.73		%		1.87		%		1.81		%
Tangible widespread fairness/tangible property*	7.99		%		eight.89		%		7.81		%		eight.67		%
Leverage ratio	9.2		%		10.2		%		9.2		%		10.zero		%
NIM (tax equal)	three.29		%		three.37		%		three.53		%		three.62		%
Allowance for credit score losses on loans/loans	2.01		%		2.32		%		1.80		%		2.07		%
* Non-GAAP measures. Confer with dialogue and reconciliation of those measures within the accompanying monetary tables. Calculations not adjusted for improve in common deposits or improve in deposit expense, as relevant.

• Asset high quality – The allowance for credit score losses on loans to whole loans elevated to 2.01% at September 30, 2020 from 1.80% and zero.85% at June 30, 2020 and September 30, 2019, respectively. Nonperforming property to whole property was zero.53% at September 30, 2020 in comparison with zero.55% and zero.33% at June 30, 2020 and September 30, 2019, respectively. Bettering financial forecasts within the present quarter lowered the availability for credit score losses in comparison with the primary and second quarters of this yr. This enchancment was offset by a rise in qualitative reserves established for sure mortgage portfolios, together with hospitality and loans which have acquired principal and curiosity deferrals.

• Deposits – Whole deposits decreased $23.Four million, or 1.Four% on an annualized foundation, from the linked quarter to $6.7 billion as of September 30, 2020. Yr-over-year, deposits grew $1.1 billion, or 18.7% on an annualized foundation, from $5.6 billion as of September 30, 2019. Common deposits totaled $6.7 billion for the quarter ended September 30, 2020 in comparison with $6.6 billion and $5.6 billion for the linked and prior yr quarters, respectively. Deposits attributable to PPP mortgage fundings primarily contributed to the expansion in deposits over the prior yr interval. Noninterest deposit accounts represented 28.9% of whole deposits at September 30, 2020, and the mortgage to deposit ratio was 91.eight% at that date.

• Capital – Whole shareholders’ fairness was $882.three million and the tangible widespread fairness to tangible property ratio was 7.99% at September 30, 2020, in comparison with 7.81% at June 30, 2020. The Financial institution’s regulatory capital ratios stay “well-capitalized,” with a typical fairness tier 1 ratio of 12.zero% and a complete risk-based capital ratio of 13.three% as of September 30, 2020. The Firm’s widespread fairness tier 1 ratio and whole risk-based capital ratio was 10.2% and 14.6%, respectively, at September 30, 2020.

  The Firm suspended its repurchase of shares by way of the share repurchase plan in March 2020. There are 95,907 shares out there for repurchase underneath the present authorization.

  The Firm’s Board of Administrators authorised a quarterly dividend of $zero.18 per widespread share, payable on December 31, 2020 to shareholders of report as of December 15, 2020.

• Liquidity – The Firm maintains a excessive stage of each on-balance-sheet and off-balance-sheet liquidity. At September 30, 2020, on-balance-sheet liquidity consisted of money and unpledged funding securities of $1.zero billion. Off-balance-sheet liquidity totaled $1.5 billion by way of the Federal House Mortgage Financial institution, Federal Reserve and correspondent financial institution traces. The Firm additionally has an unused $25 million revolving line of credit score and maintains a shelf registration permitting for the issuance of varied types of fairness and debt securities. The $63.three million subordinated debt issuance within the second quarter 2020 additionally has enhanced the holding firm’s liquidity place.

Web Curiosity Revenue

Common Stability Sheets

The next desk presents, for the durations indicated, sure info associated to our common interest-earning property and interest-bearing liabilities, in addition to, the corresponding rates of interest earned and paid, all on a tax-equivalent foundation.

	Quarter ended
	September 30, 2020											June 30, 2020											September 30, 2019
($ in hundreds)	Common Stability				Curiosity Revenue/ Expense				Common Yield/ Charge			Common Stability				Curiosity Revenue/ Expense				Common Yield/ Charge			Common Stability				Curiosity Revenue/ Expense				Common Yield/ Charge
Property
Curiosity-earning property:
Loans, excluding incremental accretion*	$	6,112,715			$	61,516			Four.00	%		$	6,zero32,076			$	63,869			Four.26	%		$	5,178,009			$	69,193			5.30	%
Debt and fairness investments*	1,361,515				eight,761				2.56			1,361,853				9,220				2.72			1,312,860				9,610				2.90
Quick-term investments	295,854				113				zero.15			177,267				87				zero.20			113,214				572				2.00
Whole incomes property	7,770,zero84				70,390				three.60			7,571,196				73,176				three.89			6,604,083				79,375				Four.77
Noninterest-earning property	571,884											587,zero08											618,274
Whole property	$	eight,341,968										$	eight,158,204										$	7,222,357
Liabilities and Shareholders’ Fairness
Curiosity-bearing liabilities:
Curiosity-bearing transaction accounts	$	1,529,zero97			$	255			zero.07	%		$	1,487,467			$	244			zero.07	%		$	1,356,328			$	2,zero48			zero.60	%
Cash market accounts	1,981,zero26				1,003				zero.20			1,941,874				995				zero.21			1,639,603				6,959				1.68
Financial savings	605,475				45				zero.03			590,104				45				zero.03			548,109				232				zero.17
Certificates of deposit	630,076				2,409				1.52			718,529				three,zero99				1.73			820,943				three,970				1.92
Whole interest-bearing deposits	Four,745,674				three,712				zero.31			Four,737,974				Four,383				zero.37			Four,364,983				13,209				1.20
Subordinated debentures	203,438				2,826				5.53			169,311				2,316				5.50			141,136				1,956				5.50
FHLB advances	250,00zero				720				1.15			251,231				455				zero.73			378,207				2,203				2.31
Securities bought underneath agreements to repurchase	199,308				59				zero.12			192,117				57				zero.12			155,238				327				zero.84
Different borrowings	31,413				116				1.47			32,842				147				1.80			37,817				337				three.54
Whole interest-bearing liabilities	5,429,833				7,433				zero.54			5,383,475				7,358				zero.55			5,zero77,381				18,zero32				1.41
Noninterest-bearing liabilities:
Demand deposits	1,920,694											1,813,760											1,232,360
Different liabilities	105,945											92,806											68,642
Whole liabilities	7,456,472											7,290,zero41											6,378,383
Shareholders’ fairness	885,496											868,163											843,974
Whole liabilities and shareholders’ fairness	$	eight,341,968										$	eight,158,204										$	7,222,357
Core web curiosity revenuethree					62,957											65,818											61,343
Core web curiosity marginthree									three.22	%										three.50	%										three.69	%
Incremental accretion on non-core acquired loans					1,235											719											2,140
Whole web curiosity revenue					$	64,192										$	66,537										$	63,483
Web curiosity margin									three.29	%										three.53	%										three.81	%
* Non-taxable revenue is offered on a tax-equivalent foundation utilizing a 24.7% tax fee. The tax-equivalent changes have been $zero.eight million for the three months ended September 30, 2020, $zero.7 million for the three months ended June 30, 2020, and $zero.Four million for the three months ended September 30, 2019.
three Core web curiosity revenue and core NIM are non-GAAP measures. Confer with dialogue and reconciliation of those measures within the accompanying monetary tables.

Web curiosity revenue for the third quarter decreased $2.5 million to $63.Four million from $65.eight million within the linked quarter, and elevated $zero.three million from the prior yr interval. NIM, on a tax equal foundation, was three.29% for the third quarter, in comparison with three.53% within the linked quarter, and three.81% within the third quarter of 2019. The lower from the linked quarter was primarily because of barely decrease charges on non-PPP loans plus the impression of the low yield on PPP loans. Moreover, mortgage yields for non-PPP loans declined within the linked quarter because of each LIBOR resets in addition to decrease charges on new loans and renewing loans which, mixed, impacted yields by 20 foundation factors.

Core web curiosity revenue and core NIM famous within the desk under exclude incremental accretion on non-core acquired loans.

	Quarter ended
($ in hundreds)	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019
Web curiosity revenue	$	63,354			$	65,833			$	63,368			$	61,613			$	63,zero46
Much less: Incremental accretion revenue2	1,235				719				1,273				576				2,140
Core web curiosity revenuethree	$	62,119			$	65,114			$	62,zero95			$	61,zero37			$	60,906
Web curiosity margin (tax equal)	three.29		%		three.53		%		three.79		%		three.68		%		three.81		%
Core web curiosity marginthree (tax equal)	three.22		%		three.50		%		three.71		%		three.64		%		three.69		%
2 Represents incremental accretion revenue on non-core acquired loans which have been acquired from the FDIC and beforehand lined by shared-loss agreements. three Core web curiosity revenue and core NIM are non-GAAP measures. Confer with dialogue and reconciliation of those measures within the accompanying monetary tables.

NIM decreased 24 foundation factors from the linked quarter to three.29% through the present quarter primarily because of a 29 foundation level lower in incomes asset yields. The lower within the incomes asset yield was primarily because of a mixture of upper common balances on PPP loans (two bps), decrease common balances for non-PPP loans (six bps), and a rise in short-term funding balances (5 bps), mixed with lowered funding (two bps) and mortgage (14 bps) yields, every as in comparison with the linked quarter. The complete-quarter impression of $63.three million of subordinated debentures issued through the second quarter negatively impacted NIM by an extra two foundation factors.

The price of interest-bearing liabilities was comparatively unchanged from the linked quarter. The Firm responded to rate of interest developments earlier within the yr by decreasing the price of sure managed cash market and interest-bearing transaction accounts. Will increase in the price of borrowings have been offset by decrease balances and charges on brokered and different time deposits.

Loans

The next desk presents whole loans for the latest 5 quarters:

	Quarter ended
($ in hundreds)	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019
C&I	$	1,zero80,860			$	1,zero57,899			$	1,186,240			$	1,186,667			$	1,174,569
CRE investor owned	1,284,351				1,302,235				1,319,316				1,290,258				1,281,332
CRE proprietor occupied	583,430				599,800				584,491				582,579				566,219
SBA PPP loans	819,100				807,814				—				—				—
Enterprise worth lendinga	367,337				382,828				440,764				428,896				417,521
Life insurance coverage premium financinga	517,559				520,705				496,471				472,822				468,zero51
Residential actual property	321,482				326,697				346,461				366,261				386,174
Development and land growth	450,225				455,686				445,909				428,681				403,590
Tax credita	368,908				363,222				354,zero46				294,210				265,626
Agriculture	190,969				191,zero93				168,237				139,873				136,249
Different	142,zero86				132,zero72				115,582				124,zero90				128,683
Whole Loans	$	6,126,307			$	6,140,zero51			$	5,457,517			$	5,314,337			$	5,228,zero14
Whole mortgage yield	Four.08		%		Four.31		%		5.06		%		5.08		%		5.47		%
Whole C&I loans to whole loansb	51		%		51		%		45		%		44		%		44		%
Variable rate of interest loans to whole loansb	50		%		51		%		60		%		59		%		60		%
Sure prior interval quantities have been reclassified among the many classes to evolve to the present interval presentation
a Specialised classes might embrace a mixture of C&I, CRE, development and land growth, or different loans.
bRatios embrace the impression of PPP.

Loans totaled $6.1 billion at September 30, 2020, reducing $13.7 million, or zero.9% on an annualized foundation, in comparison with the linked quarter. Yr-over-year, loans elevated $898.three million, or 17.2% on an annualized foundation. The year-over-year improve was primarily because of PPP loans. The biggest progress classes, excluding PPP, in comparison with the linked quarter have been C&I, different, and tax credit. New mortgage originations, excluding PPP, and revolving line advances elevated through the quarter from the linked quarter, offset by accelerated mortgage paydowns. Line draw utilization continues to say no. At September 30, 2020 utilization was 40.1% in comparison with 40.three% and 49.5% at June 30, 2020 and March 31, 2020, respectively.

The Firm has applied a number of mortgage packages to help its prospects impacted by the COVID-19 pandemic. These packages embrace shopper and enterprise deferral packages and expanded small enterprise traces of credit score.

The next desk presents mortgage modifications at the moment in a deferral standing on the durations offered:

	Quarter ended
($ in hundreds)	September 30, 2020				June 30, 2020
Business actual property	$	48,zero81			$	404,295
Business and industrial	46,zero41				171,108
Development actual property	44,243				88,369
Residential actual property	974				21,762
Different	12				134
Whole mortgage modifications	$	139,351			$	685,668
Proportion of whole loans	2		%		11		%

Asset High quality

The next desk presents the classes of nonperforming property and associated ratios for the latest 5 quarters:

	Quarter ended
($ in hundreds)	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019
Nonperforming loans	$	39,623			$	41,473			$	37,204			$	26,425			$	15,569
Different actual property	Four,835				Four,874				5,zero72				6,344				eight,498
Nonperforming property	$	44,458			$	46,347			$	42,276			$	32,769			$	24,zero67
Nonperforming loans to whole loans	zero.65		%		zero.68		%		zero.68		%		zero.50		%		zero.30		%
Nonperforming property to whole property	zero.53		%		zero.55		%		zero.56		%		zero.45		%		zero.33		%
Allowance for mortgage losses to whole loans	2.01		%		1.80		%		1.69		%		zero.81		%		zero.85		%
Web charge-offs	$	1,027			$	309			$	1,183			$	2,544			$	1,zero70

Nonperforming loans decreased $1.9 million to $39.6 million at September 30, 2020 from $41.5 million at June 30, 2020. Exercise through the present quarter primarily included additions of $10.5 million, paydowns of $9.7 million, and charge-offs of $2.6 million. The addition of $10.5 million through the quarter was primarily from one $eight.7 million resort mortgage that went on nonaccrual. Different actual property decreased barely through the third quarter 2020 because of write-downs and gross sales of $zero.three million offset by one addition of $zero.three million.

The Firm recorded a provision for credit score losses of $14.1 million for the third quarter 2020 in comparison with $19.6 million for the linked quarter and $1.eight million for the prior yr quarter. The availability for credit score losses within the third quarter 2020 was primarily due a rise in particular person reserves and qualitative reserves for sure higher-risk mortgage portfolios. To the extent that the Firm doesn’t acknowledge charge-offs and financial forecasts enhance in future durations, the Firm may acknowledge a reversal of provision for credit score losses. Conversely, if financial situations and the Firm’s forecast proceed to worsen, the Firm may acknowledge elevated ranges of provision for credit score losses.

Deposits

The next desk presents deposits damaged out by kind for the latest 5 quarters:

	Quarter ended
($ in hundreds)	September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2019				September 30, 2019
Noninterest-bearing accounts	$	1,929,540			$	1,965,868			$	1,354,571			$	1,327,348			$	1,295,450
Curiosity-bearing transaction accounts	1,499,756				1,508,535				1,389,603				1,367,444				1,307,855
Cash market and financial savings accounts	2,634,885				2,566,zero11				2,479,828				2,249,784				2,201,052
Brokered certificates of deposit	65,209				85,414				170,667				215,758				209,754
Different certificates of deposit	546,836				573,752				595,237				610,689				610,269
Whole deposit portfolio	$	6,676,226			$	6,699,580			$	5,989,906			$	5,771,zero23			$	5,624,380
Noninterest-bearing deposits to whole deposits	28.9		%		29.three		%		22.6		%		23.zero		%		23.zero		%

Whole deposits at September 30, 2020 have been $6.7 billion, a lower of $23.Four million from June 30, 2020, and a rise of $1.1 billion from September 30, 2019.

Core deposits, outlined as whole deposits excluding certificates of deposits, have been $6.1 billion at September 30, 2020, a rise of $23.eight million from the linked quarter. Cash market and financial savings accounts elevated $68.9 million as in comparison with the linked quarter whereas all different accounts declined. Noninterest-bearing deposits have been $1.9 billion at September 30, 2020, a lower of $36.three million in comparison with June 30, 2020, and a rise of $634.1 million in comparison with September 30, 2019. Certificates of deposit decreased $47.1 million from the linked quarter and $208.zero million from the prior yr quarter. The full value of deposits was zero.22% for the present quarter in comparison with zero.27% and zero.94% for the linked quarter and prior yr quarter, respectively.

Noninterest Revenue

The next desk presents a comparative abstract of the key parts of noninterest revenue for the durations indicated:

	Linked quarter comparability															Prior yr comparability
	Quarter ended															Quarter ended
($ in hundreds)	September 30, 2020				June 30, 2020				Improve (lower)							September 30, 2019				Improve (lower)
Service expenses on deposit accounts	$	2,798			$	2,616			$	182			7	%		$	three,246			$	(448	)		(14	)%
Wealth administration income	2,456				2,326				130				6	%		2,661				(205		)		(eight	)%
Card providers income	2,498				2,225				273				12	%		2,494				Four				—	%
Tax credit score revenue	748				(221		)		969				438	%		1,238				(490		)		(40	)%
Miscellaneous revenue	Four,129				three,zero14				1,115				37	%		three,925				204				5	%
Whole noninterest revenue	$	12,629			$	9,960			$	2,669			27	%		$	13,564			$	(935	)		(7	)%

Whole noninterest revenue for third quarter 2020 was $12.6 million, a rise of $2.7 million from the linked quarter and a lower of $zero.9 million from the prior yr quarter. The rise from the linked quarter was primarily because of improved transaction volumes for deposit service expenses and card providers, elevated tax credit score revenue and continued progress in mortgage income.

Noninterest Bills

Noninterest expense was $39.5 million for the third quarter 2020, in comparison with $37.9 million for the linked quarter, and $38.2 million for the third quarter 2019. The rise from the linked quarter and prior yr quarter was primarily because of merger-related bills of $1.6 million.

For the third quarter 2020, the Firm’s effectivity ratio was 52.zero% in comparison with 50.zero% and 49.9% for the linked quarter and prior yr quarter, respectively. The Firm’s core effectivity ratio^Four was 51.zero% for the quarter ended September 30, 2020, in comparison with 50.7% for the linked quarter and 51.7% for the prior yr quarter.

Four Core effectivity ratio is a non-GAAP measure. Confer with dialogue and reconciliation of this measure within the accompanying monetary tables.

Revenue Taxes

The Firm’s efficient tax fee was 20% for every of the quarters ended September 30, 2020, the linked quarter and prior yr quarter.

Capital

The next desk presents varied EFSC capital ratios:

	Quarter ended
%	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
Whole risk-based capital to risk-weighted property	14.6	%		14.Four	%		12.9	%		12.9	%		12.7	%
Tier 1 capital to threat weighted property	11.6	%		11.Four	%		11.zero	%		11.Four	%		11.2	%
Frequent fairness tier 1 capital to risk-weighted property	10.2	%		9.9	%		9.6	%		9.9	%		9.6	%
Tangible widespread fairness to tangible property5	eight.zero	%		7.eight	%		eight.Four	%		eight.9	%		eight.5	%
5 Tangible widespread fairness to tangible property is a non-GAAP measure. Confer with dialogue and reconciliation of this measure within the accompanying monetary tables.

The Firm’s robust earnings profile continues to construct whole capital even with the elevated stage of provision for credit score losses in 2020. The expansion within the stability sheet because of PPP didn’t negatively impression the Firm’s regulatory capital ratios as a result of SBA assure. The issuance of subordinated debt through the second quarter of 2020 enhanced whole risk-based capital. Capital ratios for the present quarter are topic to, amongst different issues, completion and submitting of the Firm’s regulatory reviews and ongoing regulatory evaluation.

Use of Non-GAAP Monetary Measures

The Firm’s accounting and reporting insurance policies conform to usually accepted accounting rules in the USA (“GAAP”) and the prevailing practices within the banking business. Nevertheless, the Firm offers different monetary measures, equivalent to core web curiosity revenue, core web curiosity margin, tangible widespread fairness, core effectivity ratios, ROATCE, PPNR, monetary metrics adjusted for PPP impression, and the tangible widespread fairness ratio, on this launch which might be thought of “non-GAAP monetary measures.” Typically, a non-GAAP monetary measure is a numerical measure of an organization’s monetary efficiency, monetary place, or money flows that exclude (or embrace) quantities which might be included in (or excluded from) probably the most immediately comparable measure calculated and offered in accordance with GAAP.

The Firm considers its core web curiosity revenue, core web curiosity margin, core effectivity ratio, ROATCE, PPNR, monetary metrics adjusted for PPP impression, and the tangible widespread fairness ratio, collectively “core efficiency measures,” offered on this earnings launch and the included tables as vital measures of economic efficiency, though they’re non-GAAP measures, as they supply supplemental info by which to guage the impression of non-core acquired loans, which have been acquired from the FDIC and beforehand lined by shared-loss agreements, and the associated revenue and bills, the impression of sure non-comparable objects, and the Firm’s working efficiency on an ongoing foundation. Core efficiency measures embrace contractual curiosity on non-core acquired loans, however exclude incremental accretion on these loans. Core efficiency measures additionally exclude bills immediately associated to non-core acquired loans. Core efficiency measures additionally exclude sure different revenue and expense objects, equivalent to merger associated bills, services expenses, and the acquire or loss on sale of funding securities, the Firm believes to be not indicative of or helpful to measure the Firm’s working efficiency on an ongoing foundation. The hooked up tables comprise a reconciliation of those core efficiency measures to the GAAP measures. The Firm believes that the tangible widespread fairness ratio offers helpful info to traders concerning the Firm’s capital power though it’s thought of to be a non-GAAP monetary measure and isn’t a part of the regulatory capital necessities to which the Firm is topic.

The Firm believes these non-GAAP measures and ratios, when taken along with the corresponding GAAP measures and ratios, present significant supplemental info relating to the Firm’s efficiency and capital power. The Firm’s administration makes use of, and believes that traders profit from referring to, these non-GAAP measures and ratios in assessing the Firm’s working outcomes and associated developments and when forecasting future durations. Nevertheless, these non-GAAP measures and ratios ought to be thought of along with, and never as an alternative choice to or preferable to, ratios ready in accordance with GAAP. Within the hooked up tables, the Firm has offered a reconciliation of, the place relevant, probably the most comparable GAAP monetary measures and ratios to the non-GAAP monetary measures and ratios, or a reconciliation of the non-GAAP calculation of the monetary measures for the durations indicated.

Convention Name and Webcast Data

The Firm will host a convention name and webcast at 10:00 a.m. Central Time on Tuesday, October 20, 2020. Throughout the name, administration will evaluation the third quarter of 2020 outcomes and associated issues. This press launch in addition to a associated slide presentation shall be accessible on the Firm’s web site at www.enterprisebank.com underneath “Investor Relations” previous to the scheduled broadcast of the convention name. The decision will be accessed through this similar web site web page, or through phone at 1-800-353-6461 (Convention ID #6978860). A recorded replay of the convention name shall be out there on the web site two hours after the decision’s completion. Go to http://bit.ly/EFSC3Q2020earnings and register to obtain a dial in quantity, passcode, and pin quantity. The replay shall be out there for roughly two weeks following the convention name.

About Enterprise

Enterprise Monetary Providers Corp (Nasdaq: EFSC), with roughly $eight billion in property, is a monetary holding firm headquartered in Clayton, Missouri. Enterprise Financial institution & Belief, a Missouri state-chartered belief firm with banking powers and a wholly-owned subsidiary of EFSC, operates 34 department places of work in Arizona, Kansas, Missouri and New Mexico. Enterprise Financial institution & Belief presents a variety of enterprise and private banking providers and wealth administration providers. Enterprise Belief, a division of Enterprise Financial institution & Belief, offers monetary planning, property planning, funding administration and belief providers to companies, people, establishments, retirement plans and non-profit organizations. Extra info is accessible at www.enterprisebank.com.

Enterprise Monetary Providers Corp’s widespread inventory is traded on the Nasdaq Inventory Market underneath the image “EFSC.” Please go to our web site at www.enterprisebank.com to see our commonly posted materials info.

On August 20, 2020, the Firm and its wholly-owned subsidiary financial institution, Enterprise Financial institution & Belief, entered right into a definitive settlement with Seacoast Commerce Banc Holdings (“Seacoast”) and its wholly-owned financial institution subsidiary, Seacoast Commerce Financial institution (“Seacoast Financial institution”), pursuant to which the Firm will purchase Seacoast and Seacoast Financial institution. Pursuant to the phrases of the definitive settlement, upon consummation of the proposed transaction, Seacoast shareholders will obtain zero.5061 shares of EFSC widespread inventory for every share of Seacoast widespread inventory they maintain. Headquartered in San Diego, California, Seacoast had roughly $1.three billion in whole property, $1.1 billion in loans, and $1.zero billion in deposits as of June 30, 2020 and operates 4 full-service banking places of work in San Diego, California and one in Las Vegas, Nevada. As well as, Seacoast has 20 mortgage manufacturing places of work and 6 deposit manufacturing places of work throughout the nation. As of June 30, 2020, Seacoast Financial institution was ranked because the eighth largest Small Enterprise Administration lender within the nation and has a historical past of each robust income and earnings progress in recent times. The proposed transaction has been authorised by the Federal Reserve and FDIC, and stays topic to the approval of Seacoast’s shareholders. The Firm expects to consummate the proposed transaction within the fourth quarter of 2020.

Ahead-looking Statements

Readers ought to word that, along with the historic info contained herein, this press launch incorporates “forward-looking statements” throughout the that means of, and supposed to be lined by, the protected harbor provisions of the Non-public Securities Litigation Reform Act of 1995. Such forward-looking statements based mostly on administration’s present expectations and beliefs regarding future developments and their potential results on the Firm together with, with out limitation, plans, methods and targets, and statements concerning the Firm’s expectations relating to income and asset progress, monetary efficiency and profitability, mortgage and deposit progress, yields and returns, mortgage diversification and credit score administration, shareholder worth creation and the impression of the Seacoast acquisition and different acquisitions.

Ahead-looking statements embrace, however aren’t restricted to, statements concerning the Firm’s plans, expectations, and projections of future monetary and working outcomes, in addition to statements relating to the Firm’s plans, goals, expectations or penalties of introduced transactions. The Firm makes use of phrases equivalent to “might,” “would possibly,” “will,” “ought to,” “anticipate,” “plan,” “anticipate,” “consider,” “estimate,” “predict,” “potential,” “may,” “proceed,” and “intend”, and variations of such phrases and comparable expressions, on this launch to determine such forward-looking statements. Ahead-looking statements are inherently topic to dangers and uncertainties that would trigger precise outcomes to vary materially from these contemplated from such statements. The COVID-19 pandemic is adversely affecting us, our prospects, counterparties, staff, and third-party service suppliers, and the last word extent of the impacts on our enterprise, monetary place, outcomes of operations, liquidity, and prospects is unsure. Continued deterioration on the whole enterprise and financial situations, together with additional will increase in unemployment charges, or turbulence in home or international monetary markets may adversely have an effect on our revenues and the values of our property and liabilities, cut back the supply of funding, result in a tightening of credit score, and additional improve inventory value volatility. As well as, modifications to statutes, rules, or regulatory insurance policies or practices on account of, or in response to COVID-19, may have an effect on us in substantial and unpredictable methods. Different components that would trigger or contribute to such variations embrace, however aren’t restricted to, the Firm’s means to effectively combine acquisitions, together with the Seacoast acquisition, into its operations, retain the purchasers of those companies and develop the acquired operations, in addition to credit score threat, modifications within the appraised valuation of actual property securing impaired loans, outcomes of litigation and different contingencies, publicity to basic and native financial situations, dangers related to speedy will increase or decreases in prevailing rates of interest, consolidation within the banking business, competitors from banks and different monetary establishments, the Firm’s means to draw and retain relationship officers and different key personnel, burdens imposed by federal and state regulation, modifications in regulatory necessities, modifications in accounting insurance policies and practices or accounting requirements, together with ASU 2016-13 (Subject 326), “Measurement of Credit score Losses on Monetary Devices,” generally referenced because the Present Anticipated Credit score Loss (“CECL”) mannequin, which modified how we estimate credit score losses and will improve the required stage of our allowance for credit score losses after adoption on January 1, 2020, uncertainty relating to the way forward for LIBOR, pure disasters, conflict or terrorist actions, or pandemics, or the outbreak of COVID-19 or comparable outbreaks, and their results on financial and enterprise environments wherein we function, in addition to different threat components described within the Firm’s 2019 Annual Report on Kind 10-Ok and different reviews filed with the Securities and Alternate Fee (the “SEC”). Ahead-looking statements communicate solely as of the date they’re made, and the Firm undertakes no obligation to replace them in mild of latest info or future occasions except required underneath the federal securities legal guidelines.

Discover to Seacoast Shareholders

This press launch doesn’t represent a suggestion to promote or the solicitation of a suggestion to purchase any securities or a solicitation of any vote or approval.

In reference to EFSC’s proposed acquisition of Seacoast, EFSC filed a registration assertion on Kind S-Four (File No. 333-248758) (the “Registration Assertion”) with the SEC. The Registration Assertion features a preliminary proxy assertion of Seacoast and a preliminary prospectus of EFSC, that are collectively known as the proxy assertion/prospectus, in addition to different related paperwork regarding the proposed transaction. The Registration Assertion was declared efficient by the SEC on September 28, 2020.

SHAREHOLDERS OF SEACOAST ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE ACQUISITION AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT/PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED ACQUISITION AND RELATED MATTERS.

The ultimate proxy assertion/prospectus was mailed to Seacoast’s shareholders of recorded as of the shut of enterprise on September 24, 2020. Buyers and safety holders will have the ability to receive the Registration Assertion, the proxy assertion/prospectus, and some other paperwork EFSC has filed with the SEC, freed from cost on the SEC’s web site, www.sec.gov. As well as, paperwork filed with the SEC by EFSC can be found freed from cost by (1) accessing EFSC’s web site at www.enterprisebank.com underneath the “Investor Relations” hyperlink, (2) writing EFSC at 150 North Meramec, Clayton, Missouri 63105, Consideration: Investor Relations, or (three) writing Seacoast at 11939 Rancho Bernardo Street, Suite 200, San Diego, CA 92128, Consideration: Chief Monetary Officer.

Contributors in Solicitation

EFSC and Seacoast and sure of their administrators and government officers could also be deemed to be individuals within the solicitation of proxies from the shareholders of Seacoast in reference to the proposed merger. Details about the administrators and government officers of EFSC is about forth within the proxy assertion for EFSC’s 2020 annual assembly of shareholders, as filed with the SEC on a Schedule 14A on March 25, 2020 and as amended by dietary supplements to the proxy assertion filed with the SEC on March 25, 2020 and April 15, 2020. Extra info relating to the pursuits of these individuals and different individuals who could also be deemed individuals within the transaction could also be obtained by studying the proxy assertion/prospectus relating to the proposed acquisition. Free copies of this doc could also be obtained as described within the previous paragraph.

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited)
	Quarter ended																				9 Months ended
(in hundreds, besides per share knowledge)	Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Sep 30, 2019				Sep 30, 2020				Sep 30, 2019
EARNINGS SUMMARY
Web curiosity revenue	$	63,354			$	65,833			$	63,368			$	61,613			$	63,zero46			$	192,555			$	177,104
Provision for credit score losses	14,zero80				19,591				22,264				1,341				1,833				55,935				5,zero31
Noninterest revenue	12,629				9,960				13,408				14,418				13,564				35,997				34,758
Noninterest expense	39,524				37,912				38,673				38,354				38,239				116,109				127,131
Revenue earlier than revenue tax expense	22,379				18,290				15,839				36,336				36,538				56,508				79,700
Revenue tax expense	Four,428				three,656				2,971				7,246				7,469				11,zero55				16,zero51
Web revenue	$	17,951			$	14,634			$	12,868			$	29,zero90			$	29,zero69			$	45,453			$	63,649
Diluted earnings per share	$	zero.68			$	zero.56			$	zero.48			$	1.09			$	1.08			$	1.73			$	2.45
Return on common property	zero.86		%		zero.72		%		zero.70		%		1.58		%		1.60		%		zero.76		%		1.26		%
Return on common widespread fairness	eight.06		%		6.78		%		5.98		%		13.43		%		13.66		%		6.96		%		11.00		%
Return on common tangible widespread fairness	10.94		%		9.28		%		eight.22		%		18.54		%		19.08		%		9.51		%		15.16		%
Web curiosity margin (tax equal)	three.29		%		three.53		%		three.79		%		three.68		%		three.81		%		three.52		%		three.85		%
Core web curiosity margin (tax equal)1	three.22		%		three.50		%		three.71		%		three.64		%		three.69		%		three.47		%		three.76		%
Effectivity ratio	52.02		%		50.02		%		50.37		%		50.45		%		49.91		%		50.80		%		60.01		%
Core effectivity ratio1	51.04		%		50.66		%		51.21		%		50.73		%		51.73		%		50.97		%		52.96		%
Whole property	$	eight,367,976			$	eight,357,501			$	7,500,643			$	7,333,791			$	7,346,791
Whole common property	eight,341,968				eight,158,204				7,363,605				7,322,496				7,222,357				$	7,956,006			$	6,749,988
Whole deposits	6,676,226				6,699,580				5,989,906				5,771,zero23				5,624,380
Whole common deposits	6,666,368				6,551,734				5,837,717				5,756,292				5,597,343				6,353,zero87				5,296,257
Interval finish widespread shares excellent	26,210				26,196				26,161				26,543				26,613
Dividends per widespread share	$	zero.18			$	zero.18			$	zero.18			$	zero.17			$	zero.16			$	zero.54			$	zero.45
Tangible guide worth per widespread share	$	24.80			$	24.22			$	23.38			$	23.76			$	22.82
Tangible widespread fairness to tangible property1	7.99		%		7.81		%		eight.42		%		eight.89		%		eight.54		%
Whole risk-based capital to risk-weighted property	14.6		%		14.Four		%		12.eight		%		12.9		%		12.7		%
1Confer with Reconciliations of Non-GAAP Monetary Measures desk for a reconciliation of those measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Quarter ended																				9 Months ended
($ in hundreds, besides per share knowledge)	Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Sep 30, 2019				Sep 30, 2020				Sep 30, 2019
INCOME STATEMENTS
NET INTEREST INCOME
Whole curiosity revenue	$	70,787			$	73,191			$	76,688			$	77,238			$	81,zero78			$	220,666			$	227,896
Whole curiosity expense	7,433				7,358				13,320				15,625				18,zero32				28,111				50,792
Web curiosity revenue	63,354				65,833				63,368				61,613				63,zero46				192,555				177,104
Provision for credit score losses	14,zero80				19,591				22,264				1,341				1,833				55,935				5,zero31
Web curiosity revenue after provision for credit score losses	49,274				46,242				41,104				60,272				61,213				136,620				172,zero73
NONINTEREST INCOME
Deposit service expenses	2,798				2,616				three,143				three,254				three,246				eight,557				9,547
Wealth administration income	2,456				2,326				2,501				2,618				2,661				7,283				7,314
Card providers income	2,498				2,225				2,247				2,409				2,494				6,970				6,745
Tax credit score revenue	748				(221)				2,036				three,425				1,238				2,563				1,968
Different revenue	Four,129				three,zero14				three,481				2,712				three,925				10,624				9,184
Whole noninterest revenue	12,629				9,960				13,408				14,418				13,564				35,997				34,758
NONINTEREST EXPENSE
Worker compensation and advantages	22,zero40				22,389				21,685				20,411				20,845				66,114				60,884
Occupancy	three,408				three,185				three,347				three,461				three,179				9,940				9,zero04
Merger-related bills	1,563				—				—				—				393				1,563				17,969
Different	12,513				12,338				13,641				14,482				13,822				38,492				39,274
Whole noninterest expense	39,524				37,912				38,673				38,354				38,239				116,109				127,131
Revenue earlier than revenue tax expense	22,379				18,290				15,839				36,336				36,538				56,508				79,700
Revenue tax expense	Four,428				three,656				2,971				7,246				7,469				11,zero55				16,zero51
Web revenue	$	17,951			$	14,634			$	12,868			$	29,zero90			$	29,zero69			$	45,453			$	63,649
Fundamental earnings per share	$	zero.68			$	zero.56			$	zero.49			$	1.10			$	1.09			$	1.73			$	2.46
Diluted earnings per share	$	zero.68			$	zero.56			$	zero.48			$	1.09			$	1.08			$	1.73			$	2.45

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Quarter ended
($ in hundreds)	Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Sep 30, 2019
BALANCE SHEETS
ASSETS
Money and due from banks	$	98,816			$	100,804			$	98,619			$	74,769			$	153,730
Curiosity-earning deposits	301,773				254,830				88,794				96,217				106,747
Debt and fairness investments	1,375,931				1,387,zero01				1,382,149				1,354,527				1,354,986
Loans held on the market	14,zero32				16,zero29				eight,430				5,570				6,281
Loans	6,126,307				6,140,zero51				5,457,517				5,314,337				5,228,zero14
Much less: Allowance for mortgage losses	123,270				110,270				92,187				43,288				44,555
Whole loans, web	6,003,zero37				6,zero29,781				5,365,330				5,271,zero49				5,183,459
Fastened property, web	56,807				58,231				59,358				60,zero13				59,216
Goodwill	210,344				210,344				210,344				210,344				211,251
Intangible property, web	21,820				23,196				24,585				26,076				27,626
Different property	285,416				277,285				263,zero34				235,226				243,495
Whole property	$	eight,367,976			$	eight,357,501			$	7,500,643			$	7,333,791			$	7,346,791
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	1,929,540			$	1,965,868			$	1,354,571			$	1,327,348			$	1,295,450
Curiosity-bearing deposits	Four,746,686				Four,733,712				Four,635,335				Four,443,675				Four,328,930
Whole deposits	6,676,226				6,699,580				5,989,906				5,771,zero23				5,624,380
Subordinated debentures	203,510				203,384				141,336				141,258				141,179
FHLB advances	250,00zero				250,00zero				222,00zero				222,406				461,426
Different borrowings	239,zero38				227,961				205,918				265,172				199,634
Different liabilities	116,935				108,613				95,zero47				66,747				74,zero77
Whole liabilities	7,485,709				7,489,538				6,654,207				6,466,606				6,500,696
Shareholders’ fairness	882,267				867,963				846,436				867,185				846,zero95
Whole liabilities and shareholders’ fairness	$	eight,367,976			$	eight,357,501			$	7,500,643			$	7,333,791			$	7,346,791

Common Stability Sheets

The next desk presents, for the durations indicated, sure info associated to our common interest-earning property and interest-bearing liabilities, in addition to, the corresponding rates of interest earned and paid, all on a tax equal foundation.

	9 Months ended
	September 30, 2020											September 30, 2019
($ in hundreds)	Common Stability				Curiosity Revenue/ Expense				Common Yield/ Charge			Common Stability				Curiosity Revenue/ Expense				Common Yield/ Charge
Property
Curiosity-earning property:
Loans, excluding incremental accretion*	$	5,833,368			$	191,403			Four.38	%		$	Four,930,635			$	197,996			5.37	%
Debt and fairness investments*	1,356,796				27,688				2.73			1,153,632				25,zero55				2.90
Quick-term investments	188,849				500				zero.35			108,930				1,722				2.11
Whole incomes property	7,379,zero13				219,591				three.98			6,193,197				224,773				Four.85
Noninterest-earning property	576,993											556,791
Whole property	$	7,956,006										$	6,749,988
Liabilities and Shareholders’ Fairness
Curiosity-bearing liabilities:
Curiosity-bearing transaction accounts	$	1,464,144			$	1,836			zero.17	%		$	1,273,591			$	5,972			zero.63	%
Cash market accounts	1,911,584				6,738				zero.47			1,579,702				20,470				1.73
Financial savings	579,619				233				zero.05			471,zero24				646				zero.18
Certificates of deposit	713,633				9,176				1.72			783,182				11,zero60				1.89
Whole interest-bearing deposits	Four,668,980				17,983				zero.51			Four,107,499				38,148				1.24
Subordinated debentures	171,465				7,zero61				5.50			135,512				5,562				5.49
FHLB advances	240,596				2,zero70				1.15			286,267				5,297				2.47
Securities bought underneath agreements to repurchase	197,776				479				zero.32			168,740				939				zero.74
Different borrowed funds	32,836				518				2.11			31,102				846				three.64
Whole interest-bearing liabilities	5,311,653				28,111				zero.71			Four,729,120				50,792				1.44
Noninterest-bearing liabilities:
Demand deposits	1,684,107											1,188,758
Different liabilities	87,302											58,267
Whole liabilities	7,083,zero62											5,976,145
Shareholders’ fairness	872,944											773,843
Whole liabilities and shareholders’ fairness	$	7,956,006										$	6,749,988
Core web curiosity revenue1					191,480											173,981
Core web curiosity margin1									three.47	%										three.76	%
Incremental accretion on non-core acquired loans					three,227											Four,207
Whole web curiosity revenue					$	194,707										$	178,188
Web curiosity margin									three.52	%										three.85	%
* Non-taxable revenue is offered on a tax-equivalent foundation utilizing a 24.7% tax fee. The tax-equivalent changes have been $2.2 million and $1.1 million for the 9 months ended September 30, 2020 and 2019, respectively.

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Quarter ended
($ in hundreds)	Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Sep 30, 2019
LOAN PORTFOLIO
Business and industrial	$	three,152,394			$	three,143,197			$	2,469,zero13			$	2,361,157			$	2,303,495
Business actual property	2,027,886				2,zero48,444				2,zero48,357				1,997,321				1,967,888
Development actual property	474,727				481,221				469,627				457,273				433,486
Residential actual property	321,792				326,992				346,758				366,261				386,173
Different	149,508				140,197				123,762				132,325				136,972
Whole loans	$	6,126,307			$	6,140,zero51			$	5,457,517			$	5,314,337			$	5,228,zero14
DEPOSIT PORTFOLIO
Noninterest-bearing accounts	$	1,929,540			$	1,965,868			$	1,354,571			$	1,327,348			$	1,295,450
Curiosity-bearing transaction accounts	1,499,756				1,508,535				1,389,603				1,367,444				1,307,855
Cash market and financial savings accounts	2,634,885				2,566,zero11				2,479,828				2,249,784				2,201,052
Brokered certificates of deposit	65,209				85,414				170,667				215,758				209,754
Different certificates of deposit	546,836				573,752				595,237				610,689				610,269
Whole deposit portfolio	$	6,676,226			$	6,699,580			$	5,989,906			$	5,771,zero23			$	5,624,380
AVERAGE BALANCES
Whole loans	$	6,112,715			$	6,zero32,076			$	5,352,243			$	5,279,500			$	5,178,009
Debt and fairness investments	1,361,515				1,361,853				1,346,968				1,322,zero17				1,312,860
Curiosity-earning property	7,770,zero84				7,571,196				6,791,459				6,704,506				6,604,083
Whole property	eight,341,968				eight,158,204				7,363,605				7,322,496				7,222,357
Deposits	6,666,368				6,551,734				5,837,717				5,756,292				5,597,343
Shareholders’ fairness	885,496				868,163				865,zero35				859,674				843,974
Tangible widespread fairness1	652,663				633,946				629,390				622,502				604,331
YIELDS (tax equal)
Whole loans	Four.08		%		Four.31		%		5.06		%		5.08		%		5.47		%
Debt and fairness investments	2.56				2.72				2.90				2.91				2.90
Curiosity-earning property	three.67				three.93				Four.58				Four.60				Four.90
Curiosity-bearing deposits	zero.31				zero.37				zero.88				1.05				1.20
Whole deposits	zero.22				zero.27				zero.68				zero.81				zero.94
Subordinated debentures	5.53				5.50				5.46				5.46				5.50
FHLB advances and different borrowed funds	zero.74				zero.56				1.33				1.57				1.99
Curiosity-bearing liabilities	zero.54				zero.55				1.05				1.23				1.41
Web curiosity margin	three.29				three.53				three.79				three.68				three.81
1Confer with Reconciliations of Non-GAAP Monetary Measures desk for a reconciliation of those measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Quarter ended
(in hundreds, besides per share knowledge)	Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Sep 30, 2019
ASSET QUALITY
Web charge-offs	$	1,027			$	309			$	1,183			$	2,544			$	1,zero70
Nonperforming loans	39,623				41,473				37,204				26,425				15,569
Categorized property	84,710				96,678				104,754				85,897				93,984
Nonperforming loans to whole loans	zero.65		%		zero.68		%		zero.68		%		zero.50		%		zero.30		%
Nonperforming property to whole property	zero.53		%		zero.55		%		zero.56		%		zero.45		%		zero.33		%
Allowance for mortgage losses to whole loans	2.01		%		1.80		%		1.69		%		zero.81		%		zero.85		%
Allowance for mortgage losses to nonperforming loans	311.1		%		265.9		%		247.eight		%		163.eight		%		286.2		%
Web charge-offs to common loans (annualized)	zero.07		%		zero.02		%		zero.09		%		zero.19		%		zero.08		%
WEALTH MANAGEMENT
Belief property underneath administration	$	1,641,980			$	1,602,358			$	1,445,521			$	1,671,zero82			$	1,583,260
Belief property underneath administration	2,433,zero26				2,455,111				2,139,673				2,524,478				2,404,950
MARKET DATA
E-book worth per widespread share	$	33.66			$	33.13			$	32.36			$	32.67			$	31.79
Tangible guide worth per widespread share1	$	24.80			$	24.22			$	23.38			$	23.76			$	22.82
Market worth per share	$	27.27			$	31.12			$	27.91			$	48.21			$	40.75
Interval finish widespread shares excellent	26,210				26,196				26,161				26,543				26,613
Common fundamental widespread shares	26,217				26,180				26,473				26,540				26,778
Common diluted widespread shares	26,228				26,195				26,539				26,668				26,868
CAPITAL
Whole risk-based capital to risk-weighted property	14.6		%		14.Four		%		12.9		%		12.9		%		12.7		%
Tier 1 capital to risk-weighted property	11.6		%		11.Four		%		11.zero		%		11.Four		%		11.2		%
Frequent fairness tier 1 capital to risk-weighted property	10.2		%		9.9		%		9.6		%		9.9		%		9.6		%
Tangible widespread fairness to tangible property1	eight.zero		%		7.eight		%		eight.Four		%		eight.9		%		eight.5		%
1Confer with Reconciliations of Non-GAAP Monetary Measures desk for a reconciliation of those measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
	Quarter ended																				9 Months ended
($ in hundreds)	Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Sep 30, 2019				Sep 30, 2020				Sep 30, 2019
CORE PERFORMANCE MEASURES
Web curiosity revenue	$	63,354			$	65,833			$	63,368			$	61,613			$	63,zero46			$	192,555			$	177,104
Much less: Incremental accretion revenue	1,235				719				1,273				576				2,140				three,227				Four,207
Core web curiosity revenue	62,119				65,114				62,zero95				61,zero37				60,906				189,328				172,897
Whole noninterest revenue	12,629				9,960				13,408				14,418				13,564				35,997				34,758
Much less: Different revenue from non-core acquired property	—				—				—				Four				1,zero01				—				1,368
Much less: Acquire on sale of funding securities	417				—				Four				(94)				337				421				337
Much less: Different non-core revenue	—				265				—				—				—				265				266
Core noninterest revenue	12,212				9,695				13,404				14,508				12,226				35,311				32,787
Whole core income	74,331				74,809				75,499				75,545				73,132				224,639				205,684
Whole noninterest expense	39,524				37,912				38,673				38,354				38,239				116,109				127,131
Much less: Different bills associated to non-core acquired loans	25				12				12				33				18				49				224
Much less: Merger-related bills	1,563				—				—				—				393				1,563				17,969
Core noninterest expense	37,936				37,900				38,661				38,321				37,828				114,497				108,938
Core effectivity ratio	51.04		%		50.66		%		51.21		%		50.73		%		51.73		%		50.97		%		52.96		%
NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (TAX EQUIVALENT)
Web curiosity revenue	$	64,192			$	66,537			$	63,978			$	62,141			$	63,483			$	194,707			$	178,188
Much less: Incremental accretion revenue	1,235				719				1,273				576				2,140				three,227				Four,207
Core web curiosity revenue	$	62,957			$	65,818			$	62,705			$	61,565			$	61,343			$	191,480			$	173,981
Common incomes property	$	7,770,zero84			$	7,571,196			$	6,791,459			$	6,704,506			$	6,604,083			$	7,379,zero12			$	6,193,197
Reported web curiosity margin	three.29		%		three.53		%		three.79		%		three.68		%		three.81		%		three.52		%		three.85		%
Core web curiosity margin	three.22		%		three.50		%		three.71		%		three.64		%		three.69		%		three.47		%		three.76		%

	Quarter ended
($ in hundreds)	Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Sep 30, 2019
SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS
Shareholders’ fairness	$	882,267			$	867,963			$	846,436			$	867,185			$	846,zero95
Much less: Goodwill	210,344				210,344				210,344				210,344				211,251
Much less: Intangible property	21,820				23,196				24,585				26,076				27,626
Tangible widespread fairness	$	650,103			$	634,423			$	611,507			$	630,765			$	607,218
Whole property	$	eight,367,976			$	eight,357,501			$	7,500,643			$	7,333,791			$	7,346,791
Much less: Goodwill	210,344				210,344				210,344				210,344				211,251
Much less: Intangible property	21,820				23,196				24,585				26,076				27,626
Tangible property	$	eight,135,812			$	eight,123,961			$	7,265,714			$	7,zero97,371			$	7,107,914
Tangible widespread fairness to tangible property	7.99		%		7.81		%		eight.42		%		eight.89		%		eight.54		%

	Quarter Ended
($ in hundreds)	Sep 30, 2020				Jun 30, 2020				Sep 30, 2019
AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY
Common shareholder’s fairness	$	885,496			$	868,163			$	843,974
Much less common goodwill	210,344				210,344				211,251
Much less common intangible property	22,489				23,873				28,392
Common tangible widespread fairness	$	652,663			$	633,946			$	604,331

	Quarter Ended
($ in hundreds)	Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Sep 30, 2019
CALCULATION OF PRE-PROVISION NET REVENUE
Web curiosity revenue	$	63,354			$	65,833			$	63,368			$	61,613			$	63,zero46
Noninterest revenue	12,629				9,960				13,408				14,418				13,564
Much less: Noninterest expense	39,524				37,912				38,673				38,354				38,239
Merger-related bills	1,563				—				—				—				393
PPNR (excluding merger-related bills)	$	38,zero22			$	37,881			$	38,103			$	37,677			$	38,764

	Quarter Ended				Quarter Ended
($ in hundreds, besides per share knowledge)	Sep 30, 2020				Jun 30, 2020
IMPACT OF PAYCHECK PROTECTION PROGRAM
Web revenue – GAAP	$	17,951			$	14,634
PPP curiosity and payment revenue	(5,226		)		(Four,083		)
Associated tax impact	1,291				1,009
Adjusted web revenue – Non-GAAP	$	14,zero16			$	11,560
Common diluted widespread shares	26,228				26,195
EPS – GAAP web revenue	$	zero.68			$	zero.56
EPS – Adjusted web revenue	$	zero.53			$	zero.44
Common property – GAAP	$	eight,341,968			$	eight,158,204
Common PPP loans, web	(813,244		)		(634,632		)
Adjusted common property – Non-GAAP	$	7,528,724			$	7,523,572
ROAA – GAAP web revenue	zero.86		%		zero.72		%
ROAA – Adjusted web revenue, adjusted common property	zero.74		%		zero.62		%
PPNR (excluding merger-related bills) – Non-GAAP (see reconciliation above)	$	38,zero22			$	37,881
PPP curiosity and charges	(5,226		)		(Four,083		)
Adjusted PPNR (excluding merger-related bills) – Non-GAAP	$	32,796			$	33,798
PPNR ROAA (excluding merger-related bills) – PPNR (excluding merger-related bills)	1.81		%		1.87		%
PPNR ROAA (excluding merger-related bills) – adjusted PPNR (excluding merger-related bills), adjusted common property	1.73		%		1.81		%
Tangible property – Non-GAAP (see reconciliation above)	$	eight,135,812			$	eight,123,961
PPP loans excellent, web	(819,100		)		(807,814		)
Adjusted tangible property – Non-GAAP	$	7,316,712			$	7,316,147
Tangible widespread fairness Non – GAAP (see reconciliation above)	$	650,103			$	634,423
Tangible widespread fairness to tangible property	7.99		%		7.81		%
Tangible widespread fairness to tangible property – adjusted tangible property	eight.89		%		eight.67		%
Common property for leverage ratio	$	eight,115,zero20			$	7,928,286
Common PPP loans, web	(813,244		)		(634,632		)
Adjusted common property for leverage ratio – Non-GAAP	$	7,301,776			$	7,293,654
Tier 1 capital	$	745,397			$	726,574
Leverage ratio	9.2		%		9.2		%
Leverage ratio – adjusted common property for leverage ratio	10.2		%		10.zero		%
Web curiosity revenue – tax equal	$	64,192			$	66,537
PPP curiosity and charges	(5,226		)		(Four,083		)
Adjusted web curiosity revenue – tax equal	$	58,966			$	62,454
Common incomes property -GAAP	$	7,770,zero84			$	7,571,196
Common PPP loans, web	(813,244		)		(634,632		)
Adjusted common incomes property – Non-GAAP	$	6,956,840			$	6,936,564
Web curiosity margin – tax equal	three.29		%		three.53		%
Web curiosity margin – tax equal – adjusted web curiosity revenue, adjusted common incomes property	three.37		%		three.62		%
Loans – GAAP	$	6,126,307			$	6,140,zero51
PPP loans excellent, web	(819,100		)		(807,814		)
Adjusted loans – Non-GAAP	$	5,307,207			$	5,332,237
Allowance for credit score losses on loans	$	123,270			$	110,270
Allowance for credit score losses on loans/loans – GAAP	2.01		%		1.80		%
Allowance for credit score losses on loans/loans – adjusted loans	2.32		%		2.07		%