Enterprise Financial Reports Second Quarter 2021 Results

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Second Quarter Results

  • Net income of $38.4 million, $1.23 per diluted share

  • Net interest margin (tax equivalent) of 3.46%

  • Return on average assets of 1.50%

  • Loan growth of $278.5 million, excluding PPP loan activity, or 17% annualized

  • Increased dividend 6% to $0.19 per share for third quarter

  • Repurchased 251,637 shares at an average price of $47.00 per share

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

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

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

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

Highlights

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

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

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

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

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

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

PPP details:

Quarter ended

($ in thousands, except per share data)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

PPP loans outstanding, net of deferred fees

$

396,660

$

737,660

$

698,645

$

819,100

$

807,814

Average PPP loans outstanding, net

664,375

692,161

806,697

813,244

634,632

PPP average loan size

171

220

187

216

224

PPP interest and fee income

7,940

8,475

10,261

5,226

4,083

PPP deferred fees

12,243

16,676

11,304

19,522

22,414

PPP average yield

4.79

%

4.97

%

5.06

%

2.56

%

2.59

%

Quarter ended

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

Financial Metrics:

As
Reported

Excluding
PPP*

As
Reported

Excluding
PPP*

As
Reported

Excluding
PPP*

As
Reported

Excluding
PPP*

As
Reported

Excluding
PPP*

EPS

$

1.23

$

1.04

$

0.96

$

0.75

$

1.00

$

0.73

$

0.68

$

0.53

$

0.56

$

0.44

ROAA

1.50

%

1.35

%

1.22

%

1.03

%

1.26

%

1.01

%

0.86

%

0.74

%

0.72

%

0.62

%

PPNR ROAA

1.85

%

1.65

%

1.66

%

1.41

%

2.07

%

1.78

%

1.81

%

1.73

%

1.87

%

1.81

%

Tangible common equity/tangible assets*

8.32

%

8.66

%

8.18

%

8.84

%

8.40

%

9.07

%

7.99

%

8.89

%

7.81

%

8.67

%

Leverage ratio

9.4

%

10.0

%

9.5

%

10.2

%

10.0

%

11.0

%

9.2

%

10.2

%

9.2

%

10.0

%

NIM

3.46

%

3.36

%

3.50

%

3.39

%

3.66

%

3.52

%

3.29

%

3.37

%

3.53

%

3.62

%

Allowance for credit losses/loans

1.77

%

2.09

%

1.80

%

2.22

%

1.89

%

2.31

%

2.01

%

2.32

%

1.80

%

2.07

%

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

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

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

  • Capital - Total shareholders’ equity was $1.1 billion and the tangible common equity to tangible assets ratio was 8.3% at June 30, 2021, compared to 8.2% at March 31, 2021. The Bank’s regulatory capital ratios remain "well-capitalized," with a common equity tier 1 ratio of 12.3% and a total risk-based capital ratio of 13.4% as of June 30, 2021. The Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.1% and 14.9%, respectively, at June 30, 2021.

    The Company has 1,748,363 shares available for repurchase under its common stock repurchase authorization. The Company repurchased 251,637 shares totaling $11.8 million in the quarter.

    The Company’s Board of Directors unanimously approved a quarterly dividend of $0.19 per common share, payable on September 30, 2021 to shareholders of record as of September 15, 2021, an increase of $0.01 compared to the second quarter.

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

Net Interest Income

Average Balance Sheets

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

Quarter ended

June 30, 2021

March 31, 2021

June 30, 2020

($ 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:

Loans*

$

7,306,471

$

79,162

4.35

%

$

7,192,776

$

77,073

4.35

%

$

6,032,076

$

63,869

4.26

%

Debt and equity investments*

1,502,582

9,226

2.46

1,417,305

8,818

2.52

1,361,853

9,220

2.72

Short-term investments

806,928

237

0.12

679,659

189

0.11

177,267

87

0.20

Total interest-earning assets

9,615,981

88,625

3.70

9,289,740

86,080

3.76

7,571,196

73,176

3.89

Noninterest-earning assets

665,363

650,312

587,008

Total assets

$

10,281,344

$

9,940,052

$

8,158,204

Liabilities and Shareholders’ Equity

Interest-bearing liabilities:

Interest-bearing transaction accounts

$

1,985,811

$

336

0.07

%

$

1,887,059

$

328

0.07

%

$

1,487,467

$

244

0.07

%

Money market accounts

2,344,871

988

0.17

2,350,592

975

0.17

1,941,874

995

0.21

Savings

718,193

52

0.03

654,662

48

0.03

590,104

45

0.03

Certificates of deposit

522,633

1,091

0.84

537,166

1,312

0.99

718,529

3,099

1.73

Total interest-bearing deposits

5,571,508

2,467

0.18

5,429,479

2,663

0.20

4,737,974

4,383

0.37

Subordinated debentures

203,849

2,847

5.60

203,694

2,819

5.61

169,311

2,316

5.50

FHLB advances

50,000

197

1.58

50,000

195

1.58

251,231

455

0.73

Securities sold under agreements to repurchase

209,062

58

0.11

231,527

60

0.11

192,117

57

0.12

Other borrowings

27,147

94

1.39

28,650

100

1.42

32,842

147

1.80

Total interest-bearing liabilities

6,061,566

5,663

0.37

5,943,350

5,837

0.40

5,383,475

7,358

0.55

Noninterest-bearing liabilities:

Demand deposits

3,008,703

2,777,900

1,813,760

Other liabilities

94,106

122,321

92,806

Total liabilities

9,164,375

8,843,571

7,290,041

Shareholders' equity

1,116,969

1,096,481

868,163

Total liabilities and shareholders' equity

$

10,281,344

$

9,940,052

$

8,158,204

Total net interest income

$

82,962

$

80,243

$

66,537

Net interest margin

3.46

%

3.50

%

3.53

%

* Non-taxable income is presented on a tax-equivalent basis using a 24.9% and 24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustments were $1.2 million for the three months ended June 30, 2021, $1.1 million for the three months ended March 31, 2021 and $0.7 million for the three months ended June 30, 2020.

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

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

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

Loans

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

Quarter ended

December 31, 2020

($ in thousands)

June 30,
2021

March 31,
2021

Seacoasta

Legacy
EFSCa

Consolidated

September 30,
2020

June 30,
2020

C&I

$

1,116,229

$

1,048,839

$

16,079

$

1,086,981

$

1,103,060

$

1,075,421

$

1,052,373

CRE investor owned

1,467,243

1,491,244

107,449

1,313,456

1,420,905

1,281,567

1,298,801

CRE owner occupied

789,220

805,581

98,134

727,712

825,846

766,919

782,258

SBA loans*

1,010,727

941,075

874,578

21,352

895,930

15,927

17,195

Sponsor finance*

463,744

394,207

396,487

396,487

367,337

383,458

Life insurance premium financing*

564,366

543,084

534,092

534,092

517,559

520,705

Tax credits*

423,258

387,968

382,602

382,602

368,908

363,222

SBA PPP loans

396,660

737,660

85,729

612,916

698,645

819,100

807,814

Residential real estate

302,007

299,517

9,138

308,953

318,091

321,258

326,467

Construction and land development

467,586

438,303

32,535

441,864

474,399

450,225

455,686

Other

225,227

201,303

764

174,114

174,878

142,086

132,072

Total Loans

$

7,226,267

$

7,288,781

$

1,224,406

$

6,000,529

$

7,224,935

$

6,126,307

$

6,140,051

Total loan yield

4.35

%

4.35

%

4.46

%

4.08

%

4.31

%

Variable interest rate loans to total loans

60

%

56

%

57

%

50

%

51

%

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

*Specialty loan category

a Amounts reported are as of December 31, 2020 and are separately shown attributable to the Seacoast loan portfolio acquired on November 12, 2020, and the Company’s pre-Seacoast acquisition loan portfolio.

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

Asset Quality

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

Quarter ended

($ in thousands)

June 30,
2021

March 31,
2021

December 31,
2020

September 30,
2020

June 30,
2020

Nonperforming loans*

$

42,252

$

36,659

$

38,507

$

39,623

$

41,473

Other real estate

3,612

6,164

5,330

4,835

4,874

Nonperforming assets*

$

45,864

$

42,823

$

43,837

$

44,458

$

46,347

Nonperforming loans to total loans

0.58

%

0.50

%

0.53

%

0.65

%

0.68

%

Nonperforming assets to total assets

0.44

%

0.42

%

0.45

%

0.53

%

0.55

%

Allowance for credit losses to total loans

1.77

%

1.80

%

1.89

%

2.01

%

1.80

%

Net charge-offs (recoveries)

$

869

$

5,647

$

(612)

$

1,027

$

309

*Excludes government guaranteed balances.

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

Deposits

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

Quarter ended

December 31, 2020

($ in thousands)

June 30,
2021

March 31,
2021

Seacoasta

Legacy
EFSCa

Consolidated

September 30,
2020

June 30,
2020

Noninterest-bearing accounts

$

3,111,581

$

2,910,216

$

666,447

$

2,045,381

$

2,711,828

$

1,929,540

$

1,965,868

Interest-bearing transaction accounts

2,013,129

1,990,308

55,590

...

1,768,497

1,499,756

1,508,535

Money market and savings accounts

3,000,460

3,093,569

327,471

2,627,498

2,954,969

2,634,885

2,566,011

Brokered certificates of deposit

50,209

50,209

50,209

50,209

65,209

85,414

Other certificates of deposit

464,125

471,142

10,325

489,561

499,886

546,836

573,752

Total deposit portfolio

$

8,639,504

$

8,515,444

$

1,059,833

$

6,925,556

$

7,985,389

$

6,676,226

$

6,699,580

Noninterest-bearing deposits to total deposits

36.0

%

34.2

%

62.9

%

29.5

%

34.0

%

28.9

%

29.3

%

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

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

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

Noninterest Income

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

Linked quarter comparison

Prior year comparison

Quarter ended

Quarter ended

($ in thousands)

June 30,
2021

March 31,
2021

Increase
(decrease)

June 30,
2020

Increase
(decrease)

Deposit service charges

$

3,862

$

3,084

$

778

25

%

$

2,616

$

1,246

48

%

Wealth management revenue

2,516

2,483

33

1

%

2,326

190

8

%

Card services revenue

2,975

2,496

479

19

%

2,225

750

34

%

Tax credit income (expense)

1,370

(1,041

)

2,411

232

%

(221

)

1,591

(720

)%

Miscellaneous income

5,481

4,268

1,213

28

%

3,014

2,467

82

%

Total noninterest income

$

16,204

$

11,290

$

4,914

44

%

$

9,960

$

6,244

63

%

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

Noninterest Expenses

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

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

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

Income Taxes

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

Capital

The following table presents various EFSC capital ratios:

Quarter ended

Percent

June 30,
2021

March 31,
2021

December 31,
2020

September 30,
2020

June 30,
2020

Total risk-based capital to risk-weighted assets

14.9

%

15.1

%

14.9

%

14.6

%

14.4

%

Tier 1 capital to risk weighted assets

12.3

%

12.3

%

12.1

%

11.6

%

11.4

%

Common equity tier 1 capital to risk-weighted assets

11.1

%

11.0

%

10.9

%

10.2

%

9.9

%

Tangible common equity to tangible assets

8.3

%

8.2

%

8.4

%

8.0

%

7.8

%

Total equity was $1.1 billion at June 30, 2021, an increase of $25.8 million from the linked quarter. The Company repurchased $11.8 million of common stock in the second quarter 2021 which reduced total capital. However, due to the Company’s strong earnings profile, tangible book value per common share increased 3.5% to $26.85 at June 30, 2021 from $25.92 at March 31, 2021. The Company’s regulatory capital ratios continue to exceed the "well-capitalized" regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Use of Non-GAAP Financial Measures

The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States ("GAAP") and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, PPNR, PPNR ROAA, financial metrics adjusted for PPP impact, core efficiency ratio, and the tangible common equity ratio, in this release that are considered "non-GAAP financial measures." Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

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

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

Conference Call and Webcast Information

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

About Enterprise

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $12.7 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates 47 branch offices in Arizona, California, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices in Arizona, California, Colorado, Illinois, Indiana, Massachusetts, Michigan, Nevada, Ohio, Oregon, Texas, Utah, and Washington. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.

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

Forward-looking Statements

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

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

Except to the extent required by applicable law or regulation, Enterprise disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited)

Quarter ended

Six Months ended

(in thousands, except per share data)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

Jun 30,
2021

Jun 30,
2020

EARNINGS SUMMARY

Net interest income

$

81,738

$

79,123

$

77,446

$

63,354

$

65,833

$

160,861

$

129,201

Provision (benefit) for credit losses

(2,669)

46

9,463

14,080

19,591

(2,623)

41,855

Noninterest income

16,204

11,290

18,506

12,629

9,960

27,494

23,368

Noninterest expense

52,456

52,884

51,050

39,524

37,912

105,340

76,585

Income before income tax expense

48,155

37,483

35,439

22,379

18,290

85,638

34,129

Income tax expense

9,750

7,557

6,508

4,428

3,656

17,307

6,627

Net income

$

38,405

$

29,926

$

28,931

$

17,951

$

14,634

$

68,331

$

27,502

Diluted earnings per share

$

1.23

$

0.96

$

1.00

$

0.68

$

0.56

$

2.18

$

1.04

Return on average assets

1.50

%

1.22

%

1.26

%

0.86

%

0.72

%

1.36

%

0.71

%

Return on average common equity

13.79

%

11.07

%

11.60

%

8.06

%

6.78

%

12.45

%

6.38

%

Return on average tangible common equity

18.44

%

14.92

%

15.73

%

10.94

%

9.28

%

16.71

%

8.76

%

Net interest margin (tax equivalent)

3.46

%

3.50

%

3.66

%

3.29

%

3.53

%

3.48

%

3.65

%

Efficiency ratio

53.56

%

58.49

%

53.20

%

52.02

%

50.02

%

55.93

%

50.20

%

Core efficiency ratio1

51.86

%

55.02

%

50.93

%

51.04

%

50.66

%

53.38

%

50.94

%

Total loans

$

7,226,267

$

7,288,781

$

7,224,935

$

6,126,307

$

6,140,051

Total average loans

$

7,306,471

$

7,192,776

$

6,780,701

$

6,112,715

$

6,032,076

Total assets

$

10,346,993

$

10,190,699

$

9,751,571

$

8,367,976

$

8,357,501

Total average assets

$

10,281,344

$

9,940,052

$

9,141,159

$

8,341,968

$

8,158,204

$

9,940,052

$

7,760,904

Total deposits

$

8,639,504

$

8,515,444

$

7,985,389

$

6,676,226

$

6,699,580

Total average deposits

$

8,580,211

$

8,207,379

$

7,311,074

$

6,666,368

$

6,551,734

$

8,207,379

$

6,194,726

Period end common shares outstanding

31,185

31,259

31,210

26,210

26,196

Dividends per common share

$

0.18

$

0.18

$

0.18

$

0.18

$

0.18

$

0.36

$

0.36

Tangible book value per common share

$

26.85

$

25.92

$

25.48

$

24.80

$

24.22

Tangible common equity to tangible assets1

8.32

%

8.18

%

8.40

%

7.99

%

7.81

%

Total risk-based capital to risk-weighted assets

14.9

%

15.1

%

14.9

%

14.6

%

14.4

%

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

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

Six Months ended

($ in thousands, except per share data)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

Jun 30,
2021

Jun 30,
2020

INCOME STATEMENTS

NET INTEREST INCOME

Total interest income

$

87,401

$

84,960

$

84,113

$

70,787

$

73,191

$

172,361

$

149,879

Total interest expense

5,663

5,837

6,667

7,433

7,358

11,500

20,678

Net interest income

81,738

79,123

77,446

63,354

65,833

160,861

129,201

Provision (benefit) for credit losses

(2,669

)

46

9,463

14,080

19,591

(2,623

)

41,855

Net interest income after provision for credit losses

84,407

79,077

67,983

49,274

46,242

163,484

87,346

NONINTEREST INCOME

Deposit service charges

3,862

3,084

3,160

2,798

2,616

6,946

5,759

Wealth management revenue

2,516

2,483

2,449

2,456

2,326

4,999

4,827

Card services revenue

2,975

2,496

2,511

2,498

2,225

5,471

4,472

Tax credit income (expense)

1,370

(1,041

)

4,048

748

(221

)

329

1,815

Other income

5,481

4,268

6,338

4,129

3,014

9,749

6,495

Total noninterest income

16,204

11,290

18,506

12,629

9,960

27,494

23,368

NONINTEREST EXPENSE

Employee compensation and benefits

28,132

29,562

26,174

22,040

22,389

57,694

44,074

Occupancy

3,529

3,751

3,517

3,408

3,185

7,280

6,532

Merger-related expenses

1,949

3,142

2,611

1,563

5,091

Other

18,846

16,429

18,748

12,513

12,338

35,275

25,979

Total noninterest expense

52,456

52,884

51,050

39,524

37,912

105,340

76,585

Income before income tax expense

48,155

37,483

35,439

22,379

18,290

85,638

34,129

Income tax expense

9,750

7,557

6,508

4,428

3,656

17,307

6,627

Net income

$

38,405

$

29,926

$

28,931

$

17,951

$

14,634

$

68,331

$

27,502

Basic earnings per share

$

1.23

$

0.96

$

1.00

$

0.68

$

0.56

$

2.19

$

1.04

Diluted earnings per share

$

1.23

$

0.96

$

1.00

$

0.68

$

0.56

$

2.18

$

1.04

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

($ in thousands)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

BALANCE SHEETS

ASSETS

Cash and due from banks

$

126,789

$

103,367

$

99,760

$

98,816

$

100,804

Interest-earning deposits

889,960

788,464

445,569

301,773

254,830

Debt and equity investments

1,585,847

1,463,818

1,448,803

1,375,931

1,387,001

Loans held for sale

5,763

8,531

13,564

14,032

16,029

Loans

7,226,267

7,288,781

7,224,935

6,126,307

6,140,051

Less: Allowance for credit losses

128,185

131,527

136,671

123,270

110,270

Total loans, net

7,098,082

7,157,254

7,088,264

6,003,037

6,029,781

Fixed assets, net

50,972

52,078

53,169

56,807

58,231

Goodwill

260,567

260,567

260,567

210,344

210,344

Intangible assets, net

20,358

21,670

23,084

21,820

23,196

Other assets

308,655

334,950

318,791

285,416

277,285

Total assets

$

10,346,993

$

10,190,699

$

9,751,571

$

8,367,976

$

8,357,501

LIABILITIES AND SHAREHOLDERS’ EQUITY

Noninterest-bearing deposits

$

3,111,581

$

2,910,216

$

2,711,828

$

1,929,540

$

1,965,868

Interest-bearing deposits

5,527,923

5,605,228

5,273,561

4,746,686

4,733,712

Total deposits

8,639,504

8,515,444

7,985,389

6,676,226

6,699,580

Subordinated debentures

203,940

203,778

203,637

203,510

203,384

FHLB advances

50,000

50,000

50,000

250,000

250,000

Other borrowings

234,509

229,389

301,081

239,038

227,961

Other liabilities

100,739

99,591

132,489

116,935

108,613

Total liabilities

9,228,692

9,098,202

8,672,596

7,485,709

7,489,538

Shareholders’ equity

1,118,301

1,092,497

1,078,975

882,267

867,963

Total liabilities and shareholders’ equity

$

10,346,993

$

10,190,699

$

9,751,571

$

8,367,976

$

8,357,501

Six months ended

June 30, 2021

June 30, 2020

($ in thousands)

Average
Balance

Interest
Income/
Expense

Average
Yield/
Rate

Average
Balance

Interest
Income/
Expense

Average
Yield/
Rate

Assets

Interest-earning assets:

Loans*

$

7,249,938

$

156,234

4.35

%

$

5,692,159

$

131,878

4.66

%

Debt and equity investments*

1,460,179

18,044

2.49

1,354,410

18,928

2.81

Short-term investments

743,645

426

0.12

134,758

387

0.58

Total interest-earning assets

9,453,762

174,704

3.73

7,181,327

151,193

4.23

Noninterest-earning assets

657,879

579,577

Total assets

$

10,111,641

$

7,760,904

Liabilities and Shareholders’ Equity

Interest-bearing liabilities:

Interest-bearing transaction accounts

$

1,936,707

$

664

0.07

%

$

1,431,311

$

1,581

0.22

%

Money market accounts

2,347,716

1,963

0.17

1,876,482

5,735

0.61

Savings

686,603

100

0.03

566,549

188

0.07

Certificates of deposit

529,860

2,403

0.91

755,871

6,767

1.80

Total interest-bearing deposits

5,500,886

5,130

0.19

4,630,213

14,271

0.62

Subordinated debentures

203,772

5,666

5.61

155,303

4,235

5.48

FHLB advances

50,000

392

1.58

235,842

1,350

1.15

Securities sold under agreements to repurchase

220,233

118

0.11

197,002

419

0.43

Other borrowed funds

27,894

194

1.40

33,556

403

2.42

Total interest-bearing liabilities

6,002,785

11,500

0.39

5,251,916

20,678

0.79

Noninterest-bearing liabilities:

Demand deposits

2,893,939

1,564,513

Other liabilities

108,135

77,876

Total liabilities

9,004,859

6,894,305

Shareholders' equity

1,106,782

866,599

Total liabilities and shareholders' equity

$

10,111,641

$

7,760,904

Total net interest income

$

163,204

$

130,515

Net interest margin

3.48

%

3.65

%

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

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

($ in thousands)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

LOAN PORTFOLIO

Commercial and industrial

$

2,930,805

$

3,079,643

$

3,088,995

$

3,152,394

$

3,143,197

Commercial real estate

3,200,748

3,186,970

3,087,827

2,027,886

2,048,444

Construction real estate

556,776

510,501

546,686

474,727

481,221

Residential real estate

305,497

303,047

319,179

321,792

326,992

Other

232,441

208,620

182,248

149,508

140,197

Total loans

$

7,226,267

$

7,288,781

$

7,224,935

$

6,126,307

$

6,140,051

DEPOSIT PORTFOLIO

Noninterest-bearing accounts

$

3,111,581

$

2,910,216

$

2,711,828

$

1,929,540

$

1,965,868

Interest-bearing transaction accounts

2,013,129

1,990,308

1,768,497

1,499,756

1,508,535

Money market and savings accounts

3,000,460

3,093,569

2,954,969

2,634,885

2,566,011

Brokered certificates of deposit

50,209

50,209

50,209

65,209

85,414

Other certificates of deposit

464,125

471,142

499,886

546,836

573,752

Total deposit portfolio

$

8,639,504

$

8,515,444

$

7,985,389

$

6,676,226

$

6,699,580

AVERAGE BALANCES

Total loans

$

7,306,471

$

7,192,776

$

6,780,701

$

6,112,715

$

6,032,076

Debt and equity investments

1,502,582

1,417,305

1,395,806

1,361,515

1,361,853

Interest-earning assets

9,615,981

9,289,741

8,524,136

7,770,084

7,571,196

Total assets

10,281,344

9,940,052

9,141,159

8,341,968

8,158,204

Deposits

8,580,211

8,207,379

7,311,074

6,666,368

6,551,734

Shareholders’ equity

1,116,969

1,096,481

992,017

885,496

868,163

Tangible common equity1

835,405

813,568

731,813

652,663

633,946

YIELDS (tax equivalent)

Total loans

4.35

%

4.35

%

4.46

%

4.08

%

4.31

%

Debt and equity investments

2.46

2.52

2.56

2.56

2.72

Interest-earning assets

3.70

3.76

3.97

3.67

3.93

Interest-bearing deposits

0.18

0.20

0.25

0.31

0.37

Total deposits

0.12

0.13

0.17

0.22

0.27

Subordinated debentures

5.60

5.61

5.52

5.53

5.50

FHLB advances and other borrowed funds

0.49

0.46

0.61

0.74

0.56

Interest-bearing liabilities

0.37

0.40

0.47

0.54

0.55

Net interest margin

3.46

3.50

3.66

3.29

3.53

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

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

(in thousands, except per share data)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

ASSET QUALITY

Net charge-offs (recoveries)

$

869

$

5,647

$

(612

)

$

1,027

$

309

Nonperforming loans

42,252

36,659

38,507

39,623

41,473

Classified assets

100,063

114,713

123,808

84,710

96,678

Nonperforming loans to total loans

0.58

%

0.50

%

0.53

%

0.65

%

0.68

%

Nonperforming assets to total assets

0.44

%

0.42

%

0.45

%

0.53

%

0.55

%

Allowance for credit losses to total loans

1.77

%

1.80

%

1.89

%

2.01

%

1.80

%

Allowance for credit losses to nonperforming loans

303.4

%

358.8

%

354.9

%

311.1

%

265.9

%

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

0.05

%

0.32

%

(0.04

)%

0.07

%

0.02

%

WEALTH MANAGEMENT

Trust assets under management

$

1,945,293

$

1,809,001

$

1,783,089

$

1,641,980

$

1,602,358

Trust assets under administration

2,487,545

2,427,448

2,504,318

2,433,026

2,455,111

MARKET DATA

Book value per common share

$

35.86

$

34.95

$

34.57

$

33.66

$

33.13

Tangible book value per common share1

$

26.85

$

25.92

$

25.48

$

24.80

$

24.22

Market value per share

$

46.39

$

49.44

$

34.95

$

27.27

$

31.12

Period end common shares outstanding

31,185

31,259

31,210

26,210

26,196

Average basic common shares

31,265

31,247

28,929

26,217

26,180

Average diluted common shares

31,312

31,306

28,968

26,228

26,195

CAPITAL

Total risk-based capital to risk-weighted assets

14.9

%

15.1

%

14.9

%

14.6

%

14.4

%

Tier 1 capital to risk-weighted assets

12.3

%

12.3

%

12.1

%

11.6

%

11.4

%

Common equity tier 1 capital to risk-weighted assets

11.1

%

11.0

%

10.9

%

10.2

%

9.9

%

Tangible common equity to tangible assets1

8.3

%

8.2

%

8.4

%

8.0

%

7.8

%

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

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Quarter ended

Six Months ended

($ in thousands)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

Jun 30,
2021

Jun 30,
2020

CORE PERFORMANCE MEASURES

Net interest income

$

81,738

$

79,123

$

77,446

$

63,354

$

65,833

$

160,861

$

129,201

Less: Incremental accretion income

856

1,235

719

1,992

Core net interest income

81,738

79,123

76,590

62,119

65,114

160,861

127,209

Total noninterest income

16,204

11,290

18,506

12,629

9,960

27,494

23,368

Less: Gain on sale of investment securities

417

4

Less: Gain on sale of other real estate owned

549

549

Less: Other non-core income

265

265

Core noninterest income

15,655

11,290

18,506

12,212

9,695

26,945

23,099

Total core revenue

97,393

90,413

95,096

74,331

74,809

187,806

150,308

Total noninterest expense

52,456

52,884

51,050

39,524

37,912

105,340

76,585

Less: Other expenses related to non-core acquired loans

8

25

12

24

Less: Merger-related expenses

1,949

3,142

2,611

1,563

5,091

Core noninterest expense

50,507

49,742

48,431

37,936

37,900

100,249

76,561

Core efficiency ratio

51.86

%

55.02

%

50.93

%

51.04

%

50.66

%

53.38

%

50.94

%

Quarter ended

($ in thousands)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

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

Shareholders’ equity

$

1,118,301

$

1,092,497

$

1,078,975

$

882,267

$

867,963

Less: Goodwill

260,567

260,567

260,567

210,344

210,344

Less: Intangible assets

20,358

21,670

23,084

21,820

23,196

Tangible common equity

$

837,376

$

810,260

$

795,324

$

650,103

$

634,423

Total assets

$

10,346,993

$

10,190,699

$

9,751,571

$

8,367,976

$

8,357,501

Less: Goodwill

260,567

260,567

260,567

210,344

210,344

Less: Intangible assets

20,358

21,670

23,084

21,820

23,196

Tangible assets

$

10,066,068

$

9,908,462

$

9,467,920

$

8,135,812

$

8,123,961

Tangible common equity to tangible assets

8.32

%

8.18

%

8.40

%

7.99

%

7.81

%

Quarter Ended

($ in thousands)

Jun 30,
2021

Mar 31,
2021

Jun 30,
2020

AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY

Average shareholder’s equity

$

1,116,969

$

1,096,481

$

868,163

Less average goodwill

260,567

260,567

210,344

Less average intangible assets

20,997

22,346

23,873

Average tangible common equity

$

835,405

$

813,568

$

633,946

Quarter Ended

($ in thousands)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

CALCULATION OF PRE-PROVISION NET REVENUE

Net interest income

$

81,738

$

79,123

$

77,446

$

63,354

$

65,833

Noninterest income

16,204

11,290

18,506

12,629

9,960

Less: Noninterest expense

52,456

52,884

51,050

39,524

37,912

Merger-related expenses

1,949

3,142

2,611

1,563

PPNR (excluding merger-related expenses)

$

47,435

$

40,671

$

47,513

$

38,022

$

37,881

Average assets

$

10,281,344

$

9,940,052

$

9,141,159

$

8,341,968

$

8,158,204

ROAA - GAAP net income

1.50

%

1.22

%

1.26

%

0.86

%

0.72

%

PPNR ROAA - Adjusted net income

1.85

%

1.66

%

2.07

%

1.81

%

1.87

%

Quarter Ended

($ in thousands, except per share data)

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Sep 30,
2020

Jun 30,
2020

IMPACT OF PAYCHECK PROTECTION PROGRAM

Net income - GAAP

$

38,405

$

29,926

$

28,931

$

17,951

$

14,634

PPP interest and fee income

(7,940

)

(8,475

)

(10,261