Enterprise Financial Reports Fourth Quarter and Full Year 2024 Results

Published: 2025-01-27 16:07:05 ET EFSC

Fourth Quarter Results Net income of $48.8 million, or $1.28 per diluted common share, compared to $1.32 in the linked quarter and $1.16 in the prior year quarter Net interest income of $146.4 million, quarterly increase of $2.9 million Net interest margin (“NIM”) of 4.13%, quarterly decrease of 4 basis points Total loans of $11.2 billion, quarterly increase of $140.5 million, or 5% annualized Total deposits of $13.1 billion, quarterly increase of $681.2 million Return on Average Assets (“ROAA”) of 1.27%, compared to 1.36% in the linked quarter and 1.23% in the prior year quarter Return on Average Tangible Common Equity (“ROATCE”)1 of 13.63%, compared to 14.55% in the linked quarter and 14.38% in the prior year quarter Repurchased 206,529 shares and increased quarterly dividend $0.01 to $0.29 per common share for the first quarter 2025 2024 Results Net income of $185.3 million, or $4.83 per diluted common share, compared to $5.07 in the prior year Net interest income of $568.1 million, an increase of $5.5 million compared to the prior year Total loans increased $336.2 million, or 3% Total deposits increased $970.1 million, or 8% ROAA of 1.25%, compared to 1.41% in the prior year ROATCE1 of 13.58%, compared to 16.25% in the prior year Tangible common equity to tangible assets1 of 9.05% Tangible book value per common share1 of $37.27, an increase of $3.42, or 10%, from the prior year Repurchased 626,778 shares

Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), commented, “I am pleased that a continued focus on clients, associates, and our diversified business model has resulted in strong fourth quarter and full year 2024 financial results. These results, along with share repurchases and an increased common stock dividend, demonstrate our commitment to driving long-term shareholder value.”

Lally added, “We reported diluted earnings per share of $1.28 for the fourth quarter and $4.83 for the full year 2024. Our earnings resulted in a 1.27% ROAA and a 13.63% ROATCE1 for the fourth quarter. For the full year, we had a 1.25% ROAA and a 13.58% ROATCE1. We continued to grow the loan portfolio in a challenging interest rate environment, while also significantly increasing the deposit portfolio through granular client relationships. We have also made a significant investment in our operational and growth capabilities in 2024, with the completion of a core system conversion in the fourth quarter and the addition of new talent in our higher growth markets. As we look to 2025, we expect to continue to leverage these investments and capitalize on opportunities to grow and strengthen the Company.”

Full-Year Highlights For 2024, net income was $185.3 million, or $4.83 per diluted share, compared to $194.1 million, or $5.07 per diluted share, in 2023. Pre-provision net revenue (“PPNR”)2 for 2024 was $255.2 million, compared to $284.8 million in 2023. The decrease in PPNR2 in 2024 was primarily due to increases in employee compensation and benefits, deposit costs and expenses incurred on the core system conversion, partially offset by an increase in operating revenue. Offsetting the decrease in PPNR2 was a $15.1 million decrease in the provision for credit losses in 2024 compared to 2023 due to an improvement in overall asset quality.

NIM decreased to 4.16% in 2024, from 4.43% in 2023, primarily due to the impact of higher interest expense on the deposit portfolio from an increase in deposit rates and average balances. The total cost of deposits was 2.12% in 2024 compared to 1.58% in 2023. Offsetting the decline in NIM was a $995.0 million increase in average interest earning assets, which resulted in total net interest income of $568.1 million, a $5.5 million increase over the prior year.

Noninterest income was $69.7 million, an increase of $1.0 million from $68.7 million in 2023. Total noninterest expense was $385.0 million in 2024, an 11% increase from $348.2 million in 2023. The increase was primarily from higher customer deposit servicing costs due to higher average balances and an increase in earnings credit rates, an increase in compensation due to the recruitment of new relationship bankers and annual merit increases, and expenses related to the core system conversion. The core efficiency ratio2 was 58.4% in 2024, compared to 53.4% in 2023.

Nonperforming assets were 0.30% of total assets at the end of 2024, compared to 0.34% at the end of 2023. Net charge-offs were 0.16% of average loans in 2024, compared to 0.37% in 2023. The allowance for credit losses was 1.23% of total loans at the end of 2024, compared to 1.24% at the end of 2023. Excluding guaranteed portions of loans, the allowance to loans ratio2 was 1.34% and 1.35% at the end of 2024 and 2023, respectively. The provision for credit losses was $21.5 million and $36.6 million in 2024 and 2023, respectively.

The Company maintained a strong liquidity position in 2024, with total deposits of $13.1 billion, a loan-to-deposit ratio of 85.3% and cash and investment securities of $3.6 billion as of December 31, 2024. This compares to total deposits of $12.2 billion, a loan-to-deposit ratio of 89.4% and cash and investment securities of $2.9 billion at the end of 2023. Non-interest bearing deposits comprise 34.1% of total deposits at December 31, 2024, compared to 32.5% at the end of 2023. Excluding brokered certificates of deposits, core deposits as of December 31, 2024 totaled $12.7 billion, an increase of $968.3 million from the prior year.

Total shareholders’ equity was $1.8 billion and $1.7 billion as of December 31, 2024 and December 31, 2023, respectively. The increase was primarily due to net income of $185.3 million, offset by dividends and $29.6 million of share repurchases in 2024. The Company returned $39.6 million, or $1.06 per share, to common shareholders and $3.8 million, or $50.00 per share, to preferred shareholders in 2024.

Fourth Quarter Highlights

ROATCE, tangible common equity to tangible assets, and tangible book value per common share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

PPNR, core efficiency ratio, allowance to loans ratio excluding guaranteed loans, and adjusted diluted earnings per share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

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

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

Net Interest Income and NIM Average Balance Sheets The following table presents, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax-equivalent basis.

Quarter ended

December 31, 2024

September 30, 2024

December 31, 2023

($ in thousands)

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

Assets

Interest-earning assets:

Loans1, 2

11,100,112

187,761

6.73

10,971,575

191,638

6.95

10,685,961

184,982

6.87

Securities2

2,748,063

24,279

3.51

2,503,124

21,404

3.40

2,276,915

18,385

3.20

Interest-earning deposits

474,878

5,612

4.70

402,932

5,348

5.28

420,762

5,631

5.31

Total interest-earning assets

14,323,053

217,652

6.05

13,877,631

218,390

6.26

13,383,638

208,998

6.20

Noninterest-earning assets

986,524

971,824

949,166

Total assets

15,309,577

14,849,455

14,332,804

Liabilities and Shareholders’ Equity

Interest-bearing liabilities:

Interest-bearing demand accounts

3,238,964

19,517

2.40

3,018,309

20,002

2.64

2,844,847

17,248

2.41

Money market accounts

3,588,326

30,875

3.42

3,551,492

33,493

3.75

3,342,979

30,579

3.63

Savings accounts

547,176

278

0.20

561,466

345

0.24

609,645

268

0.17

Certificates of deposit

1,361,575

14,323

4.18

1,368,339

14,928

4.34

1,373,808

14,241

4.11

Total interest-bearing deposits

8,736,041

64,993

2.96

8,499,606

68,768

3.22

8,171,279

62,336

3.03

Subordinated debentures and notes

156,472

2,634

6.70

156,329

2,695

6.86

155,907

2,475

6.30

FHLB advances

3,370

4.96

4,565

5.14

—

Securities sold under agreements to repurchase

156,082

1,245

3.17

140,255

1,217

3.45

150,827

1,226

3.22

Other borrowings

36,201

1.05

36,226

1.05

49,013

314

2.54

Total interest-bearing liabilities

9,088,166

69,010

3.02

8,836,981

72,835

3.28

8,527,026

66,351

3.09

Noninterest-bearing liabilities:

Demand deposits

4,222,115

4,046,480

3,992,067

Other liabilities

154,787

161,625

160,829

Total liabilities

13,465,068

13,045,086

12,679,922

Shareholders' equity

1,844,509

1,804,369

1,652,882

Total liabilities and shareholders' equity

15,309,577

14,849,455

14,332,804

Total net interest income

148,642

145,555

142,647

Net interest margin

4.13

4.17

4.23

1 Average balances include nonaccrual loans. Interest income includes loan fees of $2.4 million, $2.6 million, and $3.1 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $2.3 million, $2.1 million, and $1.9 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.

Net interest income for the fourth quarter was $146.4 million, an increase of $2.9 million and $5.6 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $148.6 million, $145.6 million, and $142.6 million for the current, linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to growth in interest earning assets and lower rates paid on interest-bearing liabilities, specifically money market accounts and certificates of deposit. In late September 2024, the Federal Reserve began reducing the federal funds target rate by a total of 100 basis points through the end of 2024. In response, the Company adjusted deposit pricing to partially mitigate the impact on income from the repricing of variable rate loans. The increase from the prior year quarter is primarily due to organic growth in loans and an increase in the investment portfolio.

Interest income for the fourth quarter decreased $0.9 million as compared to the linked quarter primarily due to a $3.9 million decrease in loan interest income as a result of the repricing of variable rate loans, partially offset by a $2.7 million increase in interest on debt securities from an expanded investment portfolio at higher yields. Compared to the prior year quarter, interest income increased $8.3 million primarily due to an increase in average interest earning balances. Continued success in deposit generation has increased liquidity, which has been primarily deployed into the securities portfolio.

The average interest rate of new loan originations in the fourth quarter 2024 was 7.10%, a decrease of 74 basis points from the linked quarter. Investment purchases in the fourth quarter 2024 had a weighted average, tax equivalent yield of 5.10%.

Interest expense decreased $3.8 million in the fourth quarter 2024 as compared to the linked quarter primarily due to decreased interest paid on deposits. The average cost of interest-bearing deposits was 2.96%, a decrease of 26 basis points compared to the linked quarter. The total cost of deposits, including noninterest-bearing demand accounts, was 2.00% during the fourth quarter 2024, compared to 2.18% in the linked quarter.

NIM, on a tax equivalent basis, was 4.13% in the fourth quarter 2024, a decrease of 4 basis points from the linked quarter and a decrease of 10 basis points from the prior year quarter. For the month of December 2024, the loan portfolio yield was 6.69% and the cost of total deposits was 1.91%.

Investments

December 31, 2024

September 30, 2024

December 31, 2023

($ in thousands)

Carrying

Value

Net

Unrealized

Loss

Carrying

Value

Net

Unrealized

Loss

Carrying

Value

Net

Unrealized

Loss

Available-for-sale (AFS)

1,862,270

(163,212

)

1,786,793

(122,158

)

1,618,273

(150,861

)

Held-to-maturity (HTM)

928,935

(70,321

)

851,647

(46,351

)

750,434

(54,572

)

Total

2,791,205

(233,533

)

2,638,440

(168,509

)

2,368,707

(205,433

)

Investment securities totaled $2.8 billion at December 31, 2024, an increase of $152.8 million from the linked quarter. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities5 was 8.71% at December 31, 2024, compared to 9.26% at September 30, 2024.

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

($ in thousands)

December 31,

2024

September 30,

2024

June 30,

2024

March 31,

2024

December 31,

2023

C&I

2,139,032

2,145,286

2,107,097

2,263,817

2,186,203

CRE investor owned

2,405,356

2,346,575

2,308,926

2,280,990

2,291,660

CRE owner occupied

1,305,025

1,322,714

1,313,742

1,279,929

1,262,264

SBA loans*

1,298,007

1,272,679

1,269,145

1,274,780

1,281,632

Sponsor finance*

782,722

819,079

865,883

865,180

872,264

Life insurance premium finance*

1,114,299

1,030,273

996,154

1,003,597

956,162

Tax credits*

760,229

724,441

738,249

718,383

734,594

Residential real estate

350,640

346,460

339,889

354,615

359,957

Construction and land development

794,240

796,586

791,780

726,742

670,567

Other

270,805

275,799

269,142

260,459

268,815

Total loans

11,220,355

11,079,892

11,000,007

11,028,492

10,884,118

Quarterly loan yield

6.73

6.95

6.87

Variable interest rate loans to total loans

*Specialty loan category

Loans totaled $11.2 billion at December 31, 2024, increasing $140.5 million, or 5% on an annualized basis, from the linked quarter. The increase was driven primarily by increases of $108.8 million and $41.1 million in specialty lending and commercial real estate, respectively. Average line utilization was approximately 42% for the quarter ended December 31, 2024, compared to 44% and 42% for 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:

($ in thousands)

December 31,

2024

September 30,

2024

June 30,

2024

March 31,

2024

December 31,

2023

Nonperforming loans*

42,687

28,376

39,384

35,642

43,728

Other

3,955

4,516

8,746

8,466

5,736

Nonperforming assets*

46,642

32,892

48,130

44,108

49,464

Nonperforming loans to total loans

0.38

0.26

0.36

0.32

0.40

Nonperforming assets to total assets

0.30

0.22

0.33

0.30

0.34

Allowance for credit losses

137,950

139,778

139,464

135,498

134,771

Allowance for credit losses to loans

1.23

1.26

1.27

1.23

1.24

Quarterly net charge-offs

7,131

3,850

605

5,864

28,479

*Guaranteed balances excluded

21,974

11,899

12,933

9,630

10,682

Nonperforming assets increased $13.8 million during the fourth quarter 2024 and decreased $2.8 million from the prior year quarter. The increase from the prior quarter was primarily due to two relationships that are being actively monitored. Net charge-offs totaled 16 basis points of average loans in 2024, compared to 37 basis points in 2023. Annualized net charge-offs totaled 26 basis points of average loans in the fourth quarter 2024, compared to 14 basis points in the linked quarter and 106 basis points in the prior year quarter.

The provision for credit losses totaled $6.8 million in the fourth quarter 2024, compared to $4.1 million and $18.1 million in the linked and prior year quarters, respectively. The provision for credit losses in the fourth quarter 2024 was primarily related to charge-offs and loan growth. The decline in the provision for credit losses in the fourth quarter 2024 compared to the prior year quarter was related to the reduction in net charge offs.

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

($ in thousands)

December 31,

2024

September 30,

2024

June 30,

2024

March 31,

2024

December 31,

2023

Noninterest-bearing demand accounts

4,484,072

3,934,245

3,928,308

3,805,334

3,958,743

Interest-bearing demand accounts

3,175,292

3,048,981

2,951,899

2,956,282

2,950,259

Money market and savings accounts

4,117,524

4,121,543

4,039,626

4,006,702

3,994,455

Brokered certificates of deposit

484,588

480,934

494,870

659,005

482,759

Other certificates of deposit

885,016

879,619

867,680

826,378

790,155

Total deposit portfolio

13,146,492

12,465,322

12,282,383

12,253,701

12,176,371

Noninterest-bearing deposits to total deposits

34.1

31.6

32.0

31.1

32.5

Total costs of deposits

2.00

2.18

2.16

2.13

2.03

Total deposits at December 31, 2024 were $13.1 billion, an increase of $681.2 million and $970.1 million from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, deposits increased $677.5 million and $968.3 million from the linked and prior year quarters, respectively. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.3 billion at December 31, 2024, compared to $1.2 billion at September 30, 2024.

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

($ in thousands)

December 31,

2024

September 30,

2024

Increase (decrease)

December 31,

2023

Increase (decrease)

Deposit service charges

4,730

4,649

4,334

396

Wealth management revenue

2,719

2,599

120

2,428

291

Card services revenue

2,484

2,573

(89

)

2,666

(182

)

Tax credit income

6,018

3,252

2,766

9,688

(3,670

)

(38

Other income

4,680

8,347

(3,667

)

(44

6,336

(1,656

)

(26

Total noninterest income

20,631

21,420

(789

)

25,452

(4,821

)

(19

Total noninterest income for the fourth quarter 2024 was $20.6 million, a decrease of $0.8 million and $4.8 million from the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily due to a net gain on sale of other real estate owned in the third quarter 2024 that did not reoccur, partially offset by an increase in tax credit income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The decrease from the prior year quarter was primarily due to a decrease in tax credit income and income from community development investments.

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

Linked quarter comparison

Prior year comparison

Quarter ended

($ in thousands)

December 31,

2024

September 30,

2024

Increase (decrease)

December 31,

2023

Increase (decrease)

BOLI

895

1,123

(228

)

(20

1,279

(384

)

(30

Community development investments

297

1,177

(880

)

(75

1,027

(730

)

(71

Private equity fund distributions

320

614

(294

)

(48

725

(405

)

(56

Servicing fees

528

539

(11

)

774

(246

)

(32

Swap fees

972

955

5,618

163

809

496

Gain (loss) on sale of other real estate owned

(68

)

3,159

(3,227

)

(102

—

(68

)

—

Miscellaneous income

1,736

1,718

2,368

(632

)

(27

Total other income

4,680

8,347

(3,667

)

(44

6,336

(1,656

)

(26

The decrease in other income in the fourth quarter 2024 compared to the linked quarter was driven by a $3.2 million decrease in the net gain on sale of other real estate owned, as well as a decrease in income from community development investments. Compared to the prior year quarter, the decrease in other income was primarily related to a decrease in income from community development investments and private equity fund distributions. Community development investment income and private equity fund distributions are not consistent sources of income and fluctuate based on distributions from the underlying funds.

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

Linked quarter comparison

Prior year comparison

Quarter ended

($ in thousands)

December 31,

2024

September 30,

2024

Increase (decrease)

December 31,

2023

Increase (decrease)

Employee compensation and benefits

46,168

45,359

809

39,651

6,517

Deposit costs

22,881

23,781

(900

)

21,606

1,275

Occupancy

4,336

4,372

(36

)

4,313

Core conversion expense

1,893

1,375

518

—

1,893

—

FDIC special assessment

—

2,412

(2,412

)

(100

Other expense

24,244

23,120

1,124

24,621

(377

)

Total noninterest expense

99,522

98,007

1,515

92,603

6,919

Noninterest expense was $99.5 million for the fourth quarter 2024, a $1.5 million and $6.9 million increase from the linked and prior year quarters, respectively. Employee compensation and benefits increased $0.8 million and $6.5 million from the linked and prior year quarters, respectively, because of increases in self-insured medical claims and variable compensation. Compared to the prior year quarter, the increase was primarily due to higher compensation and benefits from merit increases and the recruitment of new bankers. Additionally, expenses related to the core system conversion increased by $0.5 million and $1.9 million from the linked and prior year quarters, respectively, due to the completion of the project in the fourth quarter 2024. Compared to the linked quarter, the increase in noninterest expense was partially offset by lower deposit costs, which decreased $0.9 million during the quarter. The year-over-year increases in noninterest expense were partially offset by a decrease in the FDIC special assessment.

For the fourth quarter 2024, the Company’s core efficiency ratio6 was 57.1% for the quarter ended December 31, 2024, compared to 58.4% for the linked quarter and 53.1% for the prior year quarter.

Income Taxes The Company’s effective tax rate was 19.5% in the fourth quarter 2024, compared to 19.4% and 19.8% in the linked and prior year quarters, respectively. The Company continues to leverage tax credit opportunities as part of its tax planning strategy.

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

($ in thousands)

December 31,

2024*

September 30,

2024

June 30,

2024

March 31,

2024

December 31,

2023

Shareholders’ equity

1,824,002

1,832,011

1,755,273

1,731,725

1,716,068

Total risk-based capital to risk-weighted assets

14.6

14.8

14.6

14.3

14.2

Tier 1 capital to risk-weighted assets

13.1

13.2

13.0

12.8

12.7

Common equity tier 1 capital to risk-weighted assets

11.8

11.9

11.7

11.4

11.3

Leverage ratio

11.1

11.2

11.1

11.0

Tangible common equity to tangible assets

9.05

9.50

9.18

9.01

8.96

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

Total equity was $1.8 billion at December 31, 2024, a decrease of $8.0 million from the linked quarter. The Company’s tangible common book value per common share5 was $37.27 at December 31, 2024, compared to $37.26 and $33.85 in the linked and prior year quarters, respectively.

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

Tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Please refer to discussion and reconciliation of this measures in the accompanying financial tables.

Core efficiency ratio and tangible common book value per common share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

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

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

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

Conference Call and Webcast Information The Company will host a conference call and webcast at 10:00 a.m. Central Time on Tuesday, January 28, 2025. During the call, management will review the fourth quarter 2024 results and related matters. This press release as well as a related slide presentation will be accessible on the Company’s website at www.enterprisebank.com under “Investor Relations” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-800-715-9871. After connecting, you may say the name of the conference or enter the Conference ID 35973. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC4Q2024EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.

About Enterprise Financial Services Corp Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $15.6 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.

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

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

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma,” “pipeline” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, as well as credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), U.S. fiscal debt, budget and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, natural disasters (such as wildfires and earthquakes), terrorist activities, war and geopolitical matters (including the war in Israel and potential for a broader regional conflict and the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

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

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

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited)

Quarter ended

Year ended

(in thousands, except per share data)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

Dec 31,

2024

Dec 31,

2023

EARNINGS SUMMARY

Net interest income

146,370

143,469

140,529

137,728

140,732

568,096

562,592

Provision for credit losses

6,834

4,099

4,819

5,756

18,053

21,508

36,605

Noninterest income

20,631

21,420

15,494

12,158

25,452

69,703

68,725

Noninterest expense

99,522

98,007

94,017

93,501

92,603

385,047

348,186

Income before income tax expense

60,645

62,783

57,187

50,629

55,528

231,244

246,526

Income tax expense

11,811

12,198

11,741

10,228

10,999

45,978

52,467

Net income

48,834

50,585

45,446

40,401

44,529

185,266

194,059

Preferred stock dividends

937

938

937

938

937

3,750

Net income available to common shareholders

47,897

49,647

44,509

39,463

43,592

181,516

190,309

Diluted earnings per common share

1.28

1.32

1.19

1.05

1.16

4.83

5.07

Adjusted diluted earnings per share1

1.32

1.29

1.21

1.07

1.20

4.88

5.11

Return on average assets

1.27

1.36

1.25

1.12

1.23

1.25

1.41

Adjusted return on average assets1

1.31

1.32

1.27

1.14

1.28

1.26

1.41

Return on average common equity

10.75

11.40

10.68

9.52

10.94

10.60

12.27

Adjusted return on average common equity1

11.08

11.09

10.90

9.70

11.35

10.71

12.35

ROATCE1

13.63

14.55

13.77

12.31

14.38

13.58

16.25

Adjusted ROATCE1

14.05

14.16

14.06

12.53

14.92

13.71

16.35

Net interest margin (tax equivalent)

4.13

4.17

4.19

4.13

4.23

4.16

4.43

Efficiency ratio

59.59

59.44

60.26

62.38

55.72

60.37

55.15

Core efficiency ratio1

57.11

58.42

58.09

60.21

53.06

58.42

53.42

Assets

15,596,431

14,954,125

14,615,666

14,613,338

14,518,590

Average assets

15,309,577

14,849,455

14,646,381

14,556,119

14,332,804

14,841,690

13,805,236

Period end common shares outstanding

36,988

37,184

37,344

37,515

37,416

Dividends per common share

0.28

0.27

0.26

0.25

1.06

1.00

Tangible book value per common share1

37.27

37.26

35.02

34.21

33.85

Tangible common equity to tangible assets1

9.05

9.50

9.18

9.01

8.96

Total risk-based capital to risk-weighted assets2

14.6

14.8

14.6

14.3

14.2

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

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

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

Year ended

(in thousands, except per share data)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

Dec 31,

2024

Dec 31,

2023

INCOME STATEMENTS

NET INTEREST INCOME

Interest income

215,380

216,304

211,644

207,723

207,083

851,051

764,919

Interest expense

69,010

72,835

71,115

69,995

66,351

282,955

202,327

Net interest income

146,370

143,469

140,529

137,728

140,732

568,096

562,592

Provision for credit losses

6,834

4,099

4,819

5,756

18,053

21,508

36,605

Net interest income after provision for credit losses

139,536

139,370

135,710

131,972

122,679

546,588

525,987

NONINTEREST INCOME

Deposit service charges

4,730

4,649

4,542

4,423

4,334

18,344

16,559

Wealth management revenue

2,719

2,599

2,590

2,544

2,428

10,452

10,030

Card services revenue

2,484

2,573

2,497

2,412

2,666

9,966

10,028

Tax credit income (loss)

6,018

3,252

1,874

(2,190

)

9,688

8,954

9,196

Other income

4,680

8,347

3,991

4,969

6,336

21,987

22,912

Total noninterest income

20,631

21,420

15,494

12,158

25,452

69,703

68,725

NONINTEREST EXPENSE

Employee compensation and benefits

46,168

45,359

44,524

45,262

39,651

181,313

164,566

Deposit costs

22,881

23,781

21,706

20,277

21,606

88,645

72,293

Occupancy

4,336

4,372

4,197

4,326

4,313

17,231

16,526

FDIC special assessment

—

625

2,412

625

2,412

Core conversion expense

1,893

1,375

1,250

350

—

4,868

—

Other expense

24,244

23,120

22,340

22,661

24,621

92,365

92,389

Total noninterest expense

99,522

98,007

94,017

93,501

92,603

385,047

348,186

Income before income tax expense

60,645

62,783

57,187

50,629

55,528

231,244

246,526

Income tax expense

11,811

12,198

11,741

10,228

10,999

45,978

52,467

Net income

48,834

50,585

45,446

40,401

44,529

185,266

194,059

Preferred stock dividends

937

938

937

938

937

3,750

Net income available to common shareholders

47,897

49,647

44,509

39,463

43,592

181,516

190,309

Basic earnings per common share

1.29

1.33

1.19

1.05

1.16

4.86

5.09

Diluted earnings per common share

1.28

1.32

1.19

1.05

1.16

4.83

5.07

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

($ in thousands)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

BALANCE SHEETS

ASSETS

Cash and due from banks

270,975

210,984

176,698

157,697

193,275

Interest-earning deposits

495,076

218,919

219,342

215,951

243,610

Debt and equity investments

2,863,989

2,714,194

2,460,549

2,443,977

2,434,902

Loans held for sale

110

304

606

610

359

Loans

11,220,355

11,079,892

11,000,007

11,028,492

10,884,118

Allowance for credit losses

(137,950

)

(139,778

)

(139,464

)

(135,498

)

(134,771

)

Total loans, net

11,082,405

10,940,114

10,860,543

10,892,994

10,749,347

Fixed assets, net

45,009

44,368

44,831

44,382

42,681

Goodwill

365,164

Intangible assets, net

8,484

9,400

10,327

11,271

12,318

Other assets

465,219

450,678

477,606

481,292

476,934

Total assets

15,596,431

14,954,125

14,615,666

14,613,338

14,518,590

LIABILITIES AND SHAREHOLDERS’ EQUITY

Noninterest-bearing deposits

4,484,072

3,934,245

3,928,308

3,805,334

3,958,743

Interest-bearing deposits

8,662,420

8,531,077

8,354,075

8,448,367

8,217,628

Total deposits

13,146,492

12,465,322

12,282,383

12,253,701

12,176,371

Subordinated debentures and notes

156,551

156,407

156,265

156,124

155,984

FHLB advances

—

150,000

78,000

125,000

—

Other borrowings

280,821

170,815

178,269

195,246

297,829

Other liabilities

188,565

179,570

165,476

151,542

172,338

Total liabilities

13,772,429

13,122,114

12,860,393

12,881,613

12,802,522

Shareholders’ equity:

Preferred stock

71,988

Common stock

370

372

373

375

374

Additional paid-in capital

990,733

992,642

994,116

995,969

995,208

Retained earnings

877,629

845,844

810,935

778,784

749,513

Accumulated other comprehensive loss

(116,718

)

(78,835

)

(122,139

)

(115,391

)

(101,015

)

Total shareholders’ equity

1,824,002

1,832,011

1,755,273

1,731,725

1,716,068

Total liabilities and shareholders’ equity

15,596,431

14,954,125

14,615,666

14,613,338

14,518,590

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Year ended

December 31, 2024

December 31, 2023

($ in thousands)

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

AVERAGE BALANCE SHEET

ASSETS

Interest-earning assets:

Loans1, 2

10,990,774

755,448

6.87

10,324,951

688,439

6.67

Securities2

2,512,690

85,130

3.39

2,291,552

71,129

3.10

Interest-earning deposits

368,221

18,918

5.14

260,214

13,430

5.16

Total interest-earning assets

13,871,685

859,496

6.20

12,876,717

772,998

6.00

Noninterest-earning assets

970,005

928,519

Total assets

14,841,690

13,805,236

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing liabilities:

Interest-bearing demand accounts

3,033,616

76,932

2.54

2,559,238

46,976

1.84

Money market accounts

3,494,497

127,651

3.65

3,043,794

92,976

3.05

Savings accounts

567,147

1,261

0.22

668,368

975

0.15

Certificates of deposit

1,371,009

58,764

4.29

1,198,551

42,796

3.57

Total interest-bearing deposits

8,466,269

264,608

3.13

7,469,951

183,723

2.46

Subordinated debentures and notes

156,260

10,497

6.72

155,702

9,781

6.28

FHLB advances

30,363

1,691

5.57

54,615

2,752

5.04

Securities sold under agreements to repurchase

164,959

5,667

3.44

168,745

3,647

2.16

Other borrowings

37,833

492

1.30

71,738

2,424

3.38

Total interest-bearing liabilities

8,855,684

282,955

3.20

7,920,751

202,327

2.55

Noninterest-bearing liabilities:

Demand deposits

4,042,368

4,131,163

Other liabilities

159,463

130,201

Total liabilities

13,057,515

12,182,115

Shareholders' equity

1,784,175

1,623,121

Total liabilities and shareholders' equity

14,841,690

13,805,236

Total net interest income

576,541

570,671

Net interest margin

4.16

4.43

1 Average balances include nonaccrual loans. Interest income includes loan fees of $9.6 million and $13.8 million for the years ended December 31, 2024 and December 31, 2023, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $8.4 million and $8.1 million for the years ended December 31, 2024 and December 31, 2023, respectively.

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

At or for the quarter ended

($ in thousands)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

LOAN PORTFOLIO

Commercial and industrial

4,716,689

4,628,488

4,619,448

4,766,310

4,672,559

Commercial real estate

4,974,787

4,915,176

4,856,751

4,804,803

4,803,571

Construction real estate

891,059

896,325

893,672

820,416

760,425

Residential real estate

359,263

355,279

351,934

367,218

372,188

Other

278,557

284,624

278,202

269,745

275,375

Total loans

11,220,355

11,079,892

11,000,007

11,028,492

10,884,118

DEPOSIT PORTFOLIO

Noninterest-bearing demand accounts

4,484,072

3,934,245

3,928,308

3,805,334

3,958,743

Interest-bearing demand accounts

3,175,292

3,048,981

2,951,899

2,956,282

2,950,259

Money market and savings accounts

4,117,524

4,121,543

4,039,626

4,006,702

3,994,455

Brokered certificates of deposit

484,588

480,934

494,870

659,005

482,759

Other certificates of deposit

885,016

879,619

867,680

826,378

790,155

Total deposits

13,146,492

12,465,322

12,282,383

12,253,701

12,176,371

AVERAGE BALANCES

Loans

11,100,112

10,971,575

10,962,488

10,927,932

10,685,961

Securities

2,748,063

2,503,124

2,396,519

2,400,571

2,276,915

Interest-earning assets

14,323,053

13,877,631

13,684,459

13,596,571

13,383,638

Assets

15,309,577

14,849,455

14,646,381

14,556,119

14,332,804

Deposits

12,958,156

12,546,086

12,344,253

12,180,703

12,163,346

Shareholders’ equity

1,844,509

1,804,369

1,748,240

1,738,698

1,652,882

Tangible common equity1

1,398,427

1,357,362

1,300,305

1,289,776

1,202,872

YIELDS (tax equivalent)

Loans

6.73

6.95

6.87

Securities

3.51

3.40

3.35

3.27

3.20

Interest-earning assets

6.05

6.26

6.28

6.20

Interest-bearing deposits

2.96

3.22

3.19

3.14

3.03

Deposits

2.00

2.18

2.16

2.13

2.03

Subordinated debentures and notes

6.70

6.86

6.91

6.40

6.30

FHLB advances and other borrowed funds

2.81

3.01

3.52

3.80

3.06

Interest-bearing liabilities

3.02

3.28

3.26

3.22

3.09

Net interest margin

4.13

4.17

4.19

4.13

4.23

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

ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

(in thousands, except per share data)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

ASSET QUALITY

Net charge-offs

7,131

3,850

605

5,864

28,479

Nonperforming loans

42,687

28,376

39,384

35,642

43,728

Classified assets

193,838

179,883

169,822

185,150

185,389

Nonperforming loans to total loans

0.38

0.26

0.36

0.32

0.40

Nonperforming assets to total assets

0.30

0.22

0.33

0.30

0.34

Allowance for credit losses to total loans

1.23

1.26

1.27

1.23

1.24

Allowance for credit losses to loans, excluding guaranteed loans1

1.34

1.38

1.34

1.35

Allowance for credit losses to nonperforming loans

323.2

492.6

354.1

380.2

308.2

Net charge-offs to average loans - annualized

0.26

0.14

0.02

0.22

1.06

WEALTH MANAGEMENT

Trust assets under management

2,412,471

2,499,807

2,367,409

2,352,902

2,235,073

SHARE DATA

Book value per common share

47.37

47.33

45.08

44.24

43.94

Tangible book value per common share1

37.27

37.26

35.02

34.21

33.85

Market value per share

56.40

51.26

40.91

40.56

44.65

Period end common shares outstanding

36,988

37,184

37,344

37,515

37,416

Average basic common shares

37,118

37,337

37,485

37,490

37,421

Average diluted common shares

37,447

37,483

37,540

37,597

37,554

CAPITAL

Total risk-based capital to risk-weighted assets2

14.6

14.8

14.6

14.3

14.2

Tier 1 capital to risk-weighted assets2

13.1

13.2

13.0

12.8

12.7

Common equity tier 1 capital to risk-weighted assets2

11.8

11.9

11.7

11.4

11.3

Tangible common equity to tangible assets1

9.05

9.50

9.18

9.01

8.96

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

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

ENTERPRISE FINANCIAL SERVICES CORP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Quarter ended

Year ended

($ in thousands)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

Dec 31,

2024

Dec 31,

2023

CORE EFFICIENCY RATIO

Net interest income (GAAP)

146,370

143,469

140,529

137,728

140,732

568,096

562,592

Tax equivalent adjustment

2,272

2,086

2,047

2,040

1,915

8,445

8,079

Noninterest income (GAAP)

20,631

21,420

15,494

12,158

25,452

69,703

68,725

Less gain on sale of investment securities

—

220

—

601

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

(68

)

3,159

—

)

—

3,089

187

Core revenue (non-GAAP)

169,341

163,816

158,070

151,928

167,879

643,155

638,608

Noninterest expense (GAAP)

99,522

98,007

94,017

93,501

92,603

385,047

348,186

Less FDIC special assessment

—

625

2,412

625

2,412

Less core conversion expense

1,893

1,375

1,250

350

—

4,868

—

Less amortization on intangibles

916

927

944

1,047

1,108

3,834

4,601

Core noninterest expense (non-GAAP)

96,713

95,705

91,823

91,479

89,083

375,720

341,173

Core efficiency ratio (non-GAAP)

57.11

58.42

58.09

60.21

53.06

58.42

53.42

Quarter ended

(in thousands, except per share data)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

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

Shareholders’ equity (GAAP)

1,824,002

1,832,011

1,755,273

1,731,725

1,716,068

Less preferred stock

71,988

Less goodwill

365,164

Less intangible assets

8,484

9,400

10,327

11,271

12,318

Tangible common equity (non-GAAP)

1,378,366

1,385,459

1,307,794

1,283,302

1,266,598

Less net unrealized losses on HTM securities, after tax

52,881

34,856

52,220

47,822

41,038

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

1,325,485

1,350,603

1,255,574

1,235,480

1,225,560

Common shares outstanding

36,988

37,184

37,344

37,515

37,416

Tangible book value per common share (non-GAAP)

37.27

37.26

35.02

34.21

33.85

Total assets

15,596,431

14,954,125

14,615,666

14,613,338

14,518,590

Less goodwill

365,164

Less intangible assets

8,484

9,400

10,327

11,271

12,318

Tangible assets (non-GAAP)

15,222,783

14,579,561

14,240,175

14,236,903

14,141,108

Tangible common equity to tangible assets (non-GAAP)

9.05

9.50

9.18

9.01

8.96

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

8.71

9.26

8.82

8.68

8.67

Quarter ended

Year ended

($ in thousands)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

Dec 31,

2024

Dec 31,

2023

RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED EARNINGS PER SHARE

Average shareholder’s equity (GAAP)

1,844,509

1,804,369

1,748,240

1,738,698

1,652,882

1,784,175

1,623,121

Less average preferred stock

71,988

Less average goodwill

365,164

Less average intangible assets

8,930

9,855

10,783

11,770

12,858

10,329

14,531

Average tangible common equity (non-GAAP)

1,398,427

1,357,362

1,300,305

1,289,776

1,202,872

1,336,694

1,171,438

Net income (GAAP)

48,834

50,585

45,446

40,401

44,529

185,266

194,059

FDIC special assessment (after tax)

—

470

1,814

470

1,814

Core conversion expense (after tax)

1,424

1,034

940

263

—

3,661

—

Less gain on sale of investment securities (after tax)

—

165

—

452

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

(51

)

2,375

—

)

—

2,323

141

Net income adjusted (non-GAAP)

50,309

49,244

46,386

41,135

46,178

187,074

195,280

Less preferred stock dividends

937

938

937

938

937

3,750

Net income available to common shareholders adjusted (non-GAAP)

49,372

48,306

45,449

40,197

45,241

183,324

191,530

Return on average common equity (non-GAAP)

10.75

11.40

10.68

9.52

10.94

10.60

12.27

Adjusted return on average common equity (non-GAAP)

11.08

11.09

10.90

9.70

11.35

10.71

12.35

ROATCE (non-GAAP)

13.63

14.55

13.77

12.31

14.38

13.58

16.25

Adjusted ROATCE (non-GAAP)

14.05

14.16

14.06

12.53

14.92

13.71

16.35

Average assets

15,309,577

14,849,455

14,646,381

14,556,119

14,332,804

14,841,690

13,805,236

Return on average assets (GAAP)

1.27

1.36

1.25

1.12

1.23

1.25

1.41

Adjusted return on average assets (non-GAAP)

1.31

1.32

1.27

1.14

1.28

1.26

1.41

Average diluted common shares

37,447

37,483

37,540

37,597

37,554

37,567

37,507

Diluted earnings per share (GAAP)

1.28

1.32

1.19

1.05

1.16

4.83

5.07

Adjusted diluted earnings per share (non-GAAP)

1.32

1.29

1.21

1.07

1.20

4.88

5.11

Quarter ended

Year ended

($ in thousands)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

Dec 31,

2024

Dec 31,

2023

CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)

Net interest income

146,370

143,469

140,529

137,728

140,732

568,096

562,592

Noninterest income

20,631

21,420

15,494

12,158

25,452

69,703

68,725

FDIC special assessment

—

625

2,412

625

2,412

Core conversion expense

1,893

1,375

1,250

350

—

4,868

—

Less gain on sale of investment securities

—

220

—

601

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

(68

)

3,159

—

)

—

3,089

187

Less noninterest expense

99,522

98,007

94,017

93,501

92,603

385,047

348,186

PPNR (non-GAAP)

69,440

65,098

63,256

57,362

75,773

255,156

284,755

($ in thousands)

Dec 31,

2024

Sep 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

ALLOWANCE TO LOANS RATIO EXCLUDING GUARANTEED LOANS

Loans

11,220,355

11,079,892

11,000,007

11,028,492

10,884,118

Less guaranteed loans

947,665

928,272

923,794

924,633

932,118

Adjusted loans (non-GAAP)

10,272,690

10,151,620

10,076,213

10,103,859

9,952,000

Allowance for credit losses

137,950

139,778

139,464

135,498

134,771

Allowance for credit losses/loans (GAAP)

1.23

1.26

1.27

1.23

1.24

Allowance for credit losses/adjusted loans (non-GAAP)

1.34

1.38

1.34

1.35

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