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Form 8-K ENTERPRISE FINANCIAL For: Jul 26

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July 27, 2021 6:04 AM EDT

EXHIBIT 99.1
enterprisefinancialservicesa.jpg
ENTERPRISE FINANCIAL REPORTS SECOND QUARTER 2021 RESULTS

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

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

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

1 PPNR and PPNR return on assets are a non-GAAP measure. Refer to 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, net664,375 692,161 806,697 813,244 634,632 
PPP average loan size171 220 187 216 224 
PPP interest and fee income7,940 8,475 10,261 5,226 4,083 
PPP deferred fees12,243 16,676 11,304 19,522 22,414 
PPP average yield4.79 %4.97 %5.06 %2.56 %2.59 %


2

Quarter ended
Jun 30,
2021		Mar 31,
2021		Dec 31,
2020		Sep 30,
2020		Jun 30,
2020
Financial Metrics:As ReportedExcluding PPP*As ReportedExcluding PPP*As ReportedExcluding PPP*As ReportedExcluding PPP*As ReportedExcluding 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 ROAA1.85 %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 ratio9.4 %10.0 %9.5 %10.2 %10.0 %11.0 %9.2 %10.2 %9.2 %10.0 %
NIM3.46 %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.



3

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, 2021March 31, 2021June 30, 2020
($ in thousands)Average
Balance		Interest
Income/
Expense		Average Yield/ RateAverage
Balance		Interest
Income/
Expense		Average Yield/ RateAverage
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 investments806,928 237 0.12 679,659 189 0.11 177,267 87 0.20 
Total interest-earning assets9,615,981 88,625 3.70 9,289,740 86,080 3.76 7,571,196 73,176 3.89 
Noninterest-earning assets665,363 650,312 587,008 
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 accounts2,344,871 988 0.17 2,350,592 975 0.17 1,941,874 995 0.21 
Savings718,193 52 0.03 654,662 48 0.03 590,104 45 0.03 
Certificates of deposit522,633 1,091 0.84 537,166 1,312 0.99 718,529 3,099 1.73 
Total interest-bearing deposits5,571,508 2,467 0.18 5,429,479 2,663 0.20 4,737,974 4,383 0.37 
Subordinated debentures203,849 2,847 5.60 203,694 2,819 5.61 169,311 2,316 5.50 
FHLB advances50,000 197 1.58 50,000 195 1.58 251,231 455 0.73 
Securities sold under agreements to repurchase209,062 58 0.11 231,527 60 0.11 192,117 57 0.12 
Other borrowings27,147 94 1.39 28,650 100 1.42 32,842 147 1.80 
Total interest-bearing liabilities6,061,566 5,663 0.37 5,943,350 5,837 0.40 5,383,475 7,358 0.55 
Noninterest-bearing liabilities:
Demand deposits3,008,703 2,777,900 1,813,760 
Other liabilities94,106 122,321 92,806 
Total liabilities9,164,375 8,843,571 7,290,041 
Shareholders' equity1,116,969 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 margin3.46 %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.


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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, 2021March 31, 2021
Seacoasta
Legacy EFSCa
ConsolidatedSeptember 30, 2020June 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 yield4.35 %4.35 %4.46 %4.08 %4.31 %
Variable interest rate loans to total loans60 %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

5

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 estate3,612 6,164 5,330 4,835 4,874 
Nonperforming assets*$45,864 $42,823 $43,837 $44,458 $46,347 
Nonperforming loans to total loans0.58 %0.50 %0.53 %0.65 %0.68 %
Nonperforming assets to total assets0.44 %0.42 %0.45 %0.53 %0.55 %
Allowance for credit losses to total loans1.77 %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, 2021March 31, 2021
Seacoasta
Legacy EFSCa
ConsolidatedSeptember 30, 2020June 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 accounts2,013,129 1,990,308 55,590 1,712,907 1,768,497 1,499,756 1,508,535 
Money market and savings accounts3,000,460 3,093,569 327,471 2,627,498 2,954,969 2,634,885 2,566,011 
Brokered certificates of deposit50,209 50,209 — 50,209 50,209 65,209 85,414 
Other certificates of deposit464,125 471,142 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 deposits36.0 %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.


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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 comparisonPrior year comparison
Quarter ended Quarter ended
($ in thousands)June 30, 2021March 31, 2021Increase (decrease)June 30, 2020Increase (decrease)
Deposit service charges$3,862 $3,084 $778 25 %$2,616 $1,246 48 %
Wealth management revenue2,516 2,483 33 1 %2,326 190 8 %
Card services revenue2,975 2,496 479 19 %2,225 750 34 %
Tax credit income (expense)1,370 (1,041)2,411 232 %(221)1,591 (720)%
Miscellaneous income5,481 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.



7

Capital
The following table presents various EFSC capital ratios:
Quarter ended
PercentJune 30, 2021March 31, 2021December 31, 2020September 30, 2020June 30, 2020
Total risk-based capital to risk-weighted assets14.9 %15.1 %14.9 %14.6 %14.4 %
Tier 1 capital to risk weighted assets12.3 %12.3 %12.1 %11.6 %11.4 %
Common equity tier 1 capital to risk-weighted assets11.1 %11.0 %10.9 %10.2 %9.9 %
Tangible common equity to tangible assets8.3 %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.


8

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

9

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.

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

10

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
Quarter endedSix 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 income16,204 11,290 18,506 12,629 9,960 27,494 23,368 
Noninterest expense52,456 52,884 51,050 39,524 37,912 105,340 76,585 
Income before income tax expense48,155 37,483 35,439 22,379 18,290 85,638 34,129 
Income tax expense9,750 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 assets1.50 %1.22 %1.26 %0.86 %0.72 %1.36 %0.71 %
Return on average common equity13.79 %11.07 %11.60 %8.06 %6.78 %12.45 %6.38 %
Return on average tangible common equity18.44 %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 ratio53.56 %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 outstanding31,185 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 assets14.9 %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.





11

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
Quarter endedSix 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 expense5,663 5,837 6,667 7,433 7,358 11,500 20,678 
Net interest income81,738 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 losses84,407 79,077 67,983 49,274 46,242 163,484 87,346 
NONINTEREST INCOME
Deposit service charges3,862 3,084 3,160 2,798 2,616 6,946 5,759 
Wealth management revenue2,516 2,483 2,449 2,456 2,326 4,999 4,827 
Card services revenue2,975 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 income5,481 4,268 6,338 4,129 3,014 9,749 6,495 
Total noninterest income16,204 11,290 18,506 12,629 9,960 27,494 23,368 
NONINTEREST EXPENSE
Employee compensation and benefits28,132 29,562 26,174 22,040 22,389 57,694 44,074 
Occupancy3,529 3,751 3,517 3,408 3,185 7,280 6,532 
Merger-related expenses1,949 3,142 2,611 1,563 — 5,091 — 
Other18,846 16,429 18,748 12,513 12,338 35,275 25,979 
Total noninterest expense52,456 52,884 51,050 39,524 37,912 105,340 76,585 
Income before income tax expense48,155 37,483 35,439 22,379 18,290 85,638 34,129 
Income tax expense9,750 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 


12

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 deposits889,960 788,464 445,569 301,773 254,830 
Debt and equity investments1,585,847 1,463,818 1,448,803 1,375,931 1,387,001 
Loans held for sale5,763 8,531 13,564 14,032 16,029 
Loans7,226,267 7,288,781 7,224,935 6,126,307 6,140,051 
   Less: Allowance for credit losses128,185 131,527 136,671 123,270 110,270 
Total loans, net7,098,082 7,157,254 7,088,264 6,003,037 6,029,781 
Fixed assets, net50,972 52,078 53,169 56,807 58,231 
Goodwill260,567 260,567 260,567 210,344 210,344 
Intangible assets, net20,358 21,670 23,084 21,820 23,196 
Other assets308,655 334,950 318,791 285,416 277,285 
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 deposits5,527,923 5,605,228 5,273,561 4,746,686 4,733,712 
Total deposits8,639,504 8,515,444 7,985,389 6,676,226 6,699,580 
Subordinated debentures203,940 203,778 203,637 203,510 203,384 
FHLB advances50,000 50,000 50,000 250,000 250,000 
Other borrowings234,509 229,389 301,081 239,038 227,961 
Other liabilities100,739 99,591 132,489 116,935 108,613 
Total liabilities9,228,692 9,098,202 8,672,596 7,485,709 7,489,538 
Shareholders’ equity1,118,301 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 



13

Six months ended
June 30, 2021June 30, 2020
($ in thousands)Average
Balance		Interest
Income/
Expense		Average Yield/ RateAverage
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 investments743,645 426 0.12 134,758 387 0.58 
Total interest-earning assets9,453,762 174,704 3.73 7,181,327 151,193 4.23 
Noninterest-earning assets657,879 579,577 
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 accounts2,347,716 1,963 0.17 1,876,482 5,735 0.61 
Savings686,603 100 0.03 566,549 188 0.07 
Certificates of deposit529,860 2,403 0.91 755,871 6,767 1.80 
Total interest-bearing deposits5,500,886 5,130 0.19 4,630,213 14,271 0.62 
Subordinated debentures203,772 5,666 5.61 155,303 4,235 5.48 
FHLB advances50,000 392 1.58 235,842 1,350 1.15 
Securities sold under agreements to repurchase220,233 118 0.11 197,002 419 0.43 
Other borrowed funds27,894 194 1.40 33,556 403 2.42 
Total interest-bearing liabilities6,002,785 11,500 0.39 5,251,916 20,678 0.79 
Noninterest-bearing liabilities:
Demand deposits2,893,939 1,564,513 
Other liabilities108,135 77,876 
Total liabilities9,004,859 6,894,305 
Shareholders' equity1,106,782 866,599 
Total liabilities and shareholders' equity$10,111,641 $7,760,904 
Total net interest income$163,204 $130,515 
Net interest margin3.48 %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.




14

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 estate3,200,748 3,186,970 3,087,827 2,027,886 2,048,444 
Construction real estate556,776 510,501 546,686 474,727 481,221 
Residential real estate305,497 303,047 319,179 321,792 326,992 
Other232,441 208,620 182,248 149,508 140,197 
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 accounts2,013,129 1,990,308 1,768,497 1,499,756 1,508,535 
Money market and savings accounts3,000,460 3,093,569 2,954,969 2,634,885 2,566,011 
Brokered certificates of deposit50,209 50,209 50,209 65,209 85,414 
Other certificates of deposit464,125 471,142 499,886 546,836 573,752 
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 investments1,502,582 1,417,305 1,395,806 1,361,515 1,361,853 
Interest-earning assets9,615,981 9,289,741 8,524,136 7,770,084 7,571,196 
Total assets10,281,344 9,940,052 9,141,159 8,341,968 8,158,204 
Deposits8,580,211 8,207,379 7,311,074 6,666,368 6,551,734 
Shareholders’ equity1,116,969 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 loans4.35 %4.35 %4.46 %4.08 %4.31 %
Debt and equity investments2.46 2.52 2.56 2.56 2.72 
Interest-earning assets3.70 3.76 3.97 3.67 3.93 
Interest-bearing deposits0.18 0.20 0.25 0.31 0.37 
Total deposits0.12 0.13 0.17 0.22 0.27 
Subordinated debentures5.60 5.61 5.52 5.53 5.50 
FHLB advances and other borrowed funds0.49 0.46 0.61 0.74 0.56 
Interest-bearing liabilities0.37 0.40 0.47 0.54 0.55 
Net interest margin3.46 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.


15

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 loans42,252 36,659 38,507 39,623 41,473 
Classified assets100,063 114,713 123,808 84,710 96,678 
Nonperforming loans to total loans0.58 %0.50 %0.53 %0.65 %0.68 %
Nonperforming assets to total assets0.44 %0.42 %0.45 %0.53 %0.55 %
Allowance for credit losses to total loans1.77 %1.80 %1.89 %2.01 %1.80 %
Allowance for credit losses to nonperforming loans303.4 %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 administration2,487,545 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 outstanding31,185 31,259 31,210 26,210 26,196 
Average basic common shares31,265 31,247 28,929 26,217 26,180 
Average diluted common shares31,312 31,306 28,968 26,228 26,195 
CAPITAL
Total risk-based capital to risk-weighted assets14.9 %15.1 %14.9 %14.6 %14.4 %
Tier 1 capital to risk-weighted assets12.3 %12.3 %12.1 %11.6 %11.4 %
Common equity tier 1 capital to risk-weighted assets11.1 %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.

16

ENTERPRISE FINANCIAL SERVICES CORP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Quarter endedSix 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 $129,201 
Less: Incremental accretion income— — 856 1,235 719 — 1,992 
Core net interest income81,738 79,123 76,590 62,119 65,114 160,861 127,209 
Total noninterest income16,204 11,290 18,506 12,629 9,960 27,494 23,368 
Less: Gain on sale of investment securities— — — 417 — — 4 
Less: Gain on sale of other real estate owned549 — — — — 549 — 
Less: Other non-core income— — — — 265 — 265 
Core noninterest income15,655 11,290 18,506 12,212 9,695 26,945 23,099 
Total core revenue97,393 90,413 95,096 74,331 74,809 187,806 150,308 
Total noninterest expense52,456 52,884 51,050 39,524 37,912 105,340 76,585 
Less: Other expenses related to non-core acquired loans— — 8 25 12 — 24 
Less: Merger-related expenses1,949 3,142 2,611 1,563 — 5,091 — 
Core noninterest expense50,507 49,742 48,431 37,936 37,900 100,249 76,561 
Core efficiency ratio51.86 %55.02 %50.93 %51.04 %50.66 %53.38 %50.94 %
Quarter ended
($ 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: Goodwill260,567 260,567 260,567 210,344 210,344 
Less: Intangible assets20,358 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: Goodwill260,567 260,567 260,567 210,344 210,344 
Less: Intangible assets20,358 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 assets8.32 %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 goodwill260,567 260,567 210,344 
Less average intangible assets20,997 22,346 23,873 
Average tangible common equity$835,405 $813,568 $633,946 

17

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 income16,204 11,290 18,506 12,629 9,960 
Less: Noninterest expense52,456 52,884 51,050 39,524 37,912 
Merger-related expenses1,949 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 income1.50 %1.22 %1.26 %0.86 %0.72 %
PPNR ROAA - Adjusted net income1.85 %1.66 %2.07 %1.81 %1.87 %











































18

Quarter Ended
($ in thousands, except per share data)Jun 30,
2021		Mar 31,
2021		Dec 31,
2020		Sep 30,
2020		Jun 30,
2020
IMPACT OF PAYCHECK PROTECTION PROGRAM
Net income - GAAP$38,405 $29,926 $28,931 $17,951 $14,634 
PPP interest and fee income(7,940)(8,475)(10,261)(5,226)(4,083)
Related tax effect1,977 2,110 2,534 1,291 1,009 
Adjusted net income - Non-GAAP$32,442 $23,561 $21,204 $14,016 $11,560 
Average diluted common shares31,312 31,303 28,968 26,228 26,195 
EPS - GAAP net income$1.23 $0.96 $1.00 $0.68 $0.56 
EPS - Adjusted net income$1.04 $0.75 $0.73 $0.53 $0.44 
Average assets - GAAP$10,281,344 $9,940,052 $9,141,159 $8,341,968 $8,158,204 
Average PPP loans, net(664,375)(692,161)(806,697)(813,244)(634,632)
Adjusted average assets - Non-GAAP$9,616,969 $9,247,891 $8,334,462 $7,528,724 $7,523,572 
ROAA - GAAP net income1.50 %1.22 %1.26 %0.86 %0.72 %
ROAA - Adjusted net income, adjusted average assets1.35 %1.03 %1.01 %0.74 %0.62 %
PPNR (excluding merger-related expenses) - Non-GAAP (see reconciliation above)$47,435 $40,671 $47,513 $38,022 $37,881 
PPP interest and fees(7,940)(8,475)(10,261)(5,226)(4,083)
Adjusted PPNR (excluding merger-related expenses) - Non-GAAP$39,495 $32,196 $37,252 $32,796 $33,798 
PPNR ROAA (excluding merger-related expenses) - PPNR (excluding merger-related expenses)1.85 %1.66 %2.07 %1.81 %1.87 %
PPNR ROAA (excluding merger-related expenses) - adjusted PPNR (excluding merger-related expenses), adjusted average assets1.65 %1.41 %1.78 %1.73 %1.81 %
Tangible assets - Non-GAAP (see reconciliation above)$10,066,068 $9,908,462 $9,467,920 $8,135,812 $8,123,961 
PPP loans outstanding, net(396,660)(737,660)(698,645)(819,100)(807,814)
Adjusted tangible assets - Non-GAAP$9,669,408 $9,170,802 $8,769,275 $7,316,712 $7,316,147 
Tangible common equity Non - GAAP (see reconciliation above)$837,376 $810,260 $795,324 $650,103 $634,423 
Tangible common equity to tangible assets8.32 %8.18 %8.40 %7.99 %7.81 %
Tangible common equity to tangible assets - adjusted tangible assets8.66 %8.84 %9.07 %8.89 %8.67 %
Average assets for leverage ratio$10,021,240 $9,675,300 $8,868,548 $8,115,020 $7,928,287 
Average PPP loans, net(664,375)(692,161)(806,697)(813,244)(634,632)
Adjusted average assets for leverage ratio - Non-GAAP$9,356,865 $8,983,139 $8,061,851 $7,301,776 $7,293,655 
Tier 1 capital$937,840 $914,459 $889,527 $745,397 $726,574 
Leverage ratio9.4 %9.5 %10.0 %9.2 %9.2 %
Leverage ratio - adjusted average assets for leverage ratio10.0 %10.2 %11.0 %10.2 %10.0 %
Net interest income - tax equivalent$82,963 $80,243 $78,484 $64,192 $66,537 
PPP interest and fees(7,940)(8,475)(10,261)(5,226)(4,083)
Adjusted net interest income - tax equivalent$75,023 $71,768 $68,223 $58,966 $62,454 
Average earning assets -GAAP$9,615,981 $9,289,741 $8,524,136 $7,770,084 $7,571,196 
Average PPP loans, net(664,375)(692,161)(806,697)(813,244)(634,632)
Adjusted average earning assets - Non-GAAP$8,951,606 $8,597,580 $7,717,439 $6,956,840 $6,936,564 
Net interest margin - tax equivalent3.46 %3.50 %3.66 %3.29 %3.53 %
Net interest margin - tax equivalent - adjusted net interest income, adjusted average earning assets3.36 %3.39 %3.52 %3.37 %3.62 %
Loans - GAAP$7,226,267 $7,288,781 $7,224,935 $6,126,307 $6,140,051 
PPP and other guaranteed loans, net(1,106,414)(1,377,302)(1,297,212)(819,100)(807,814)
Adjusted loans - Non-GAAP$6,119,853 $5,911,479 $5,927,723 $5,307,207 $5,332,237 
Allowance for credit losses $128,185 $131,527 $136,671 $123,270 $110,270 
Allowance for credit losses/loans - GAAP1.77 %1.80 %1.89 %2.01 %1.80 %
Allowance for credit losses/loans - adjusted loans2.09 2.22 %2.31 %2.32 %2.07 %

19
Enterprise Financial Services Corp 2021 Second Quarter Earnings Webcast Exhibit 99.2

 
Forward-Looking Statements Certain statements contained in this report may be considered forward-looking statements regarding Enterprise, including its wholly- owned subsidiary EB&T, FCBP, including its wholly-owned subsidiary First Choice, and Enterprise’s proposed acquisition of FCBP and First Choice. 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 EFSC or FCBP anticipated in their 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 EFSC or FCBP; that prior to the completion of the acquisition or thereafter, EFSC’s and FCBP’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, EFSC shareholder or FCBP 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 FCBP’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 EFSC’s or FCBP’s filings with the SEC, including in their Annual Reports on Form 10-K for the fiscal year ended December 31, 2020, and their other filings with the SEC. For any forward-looking statements made in this press release or in any documents, EFSC and FCBP claim 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, each of EFSC and FCBP 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. 2

 
Financial Highlights - 2Q21 Capital • Tangible Common Equity/Tangible Assets* - 8.32%; Adjusted for PPP* 8.66% • Quarterly dividend of $0.18 per share; increased 6% to $0.19 in third quarter 2021 • Repurchased 251,637 shares at an average price of $47.00 per share • Net Income $38.4 million; Earnings per Share $1.23 • PPNR* $47.4 million • ROAA 1.50%; PPNR ROAA* 1.85% • ROATCE* 18.44% Earnings *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Loans & Deposits • Total Loans $7.2 billion • PPP Loans, net $396.7million • Loan/Deposits 84% • Total Deposits $8.6 billion • Noninterest-bearing Deposits/Total Deposits 36% Asset Quality • Nonperforming Assets/Assets 0.44% • Nonperforming Loans/Loans 0.58% • Allowance Coverage Ratio 1.77%; 2.09% adjusted for guaranteed loans including PPP Acquisitions • Completed acquisition of First Choice Bancorp on July 21, 2021 3

 
Areas of Focus Integration of First Choice Bancorp and First Choice Bank • Closed on July 21, 2021 • System conversion planned for fourth quarter 2021 Organic Loan Growth and Pipeline Leverage PPP Opportunities • Cross-selling Opportunities • Client Acquisition Workforce Opportunities • Operational Efficiencies • Remote Workforce and Return to Office • Economical Branch Structure 4

 
Total Loan Trends In Millions 18% Total Lo an Growth PPP $819 PPP* $613 PPP $738 *Represents PPP loans originated by EFSC Seacoast $1,224 PPP $397 PPP $808 5

 
Loan Details 2Q21 1Q21 QTR Change 2Q20 LTM Change C&I $ 1,116 $ 1,049 $ 67 $ 1,052 $ 64 CRE, Investor Owned 1,467 1,491 (24) 1,299 168 CRE, Owner Occupied 789 806 (17) 782 7 SBA loans*1 1,011 941 70 17 994 Sponsor Finance* 464 394 70 383 81 Life Insurance Premium Financing* 564 543 21 521 43 Tax Credits* 423 388 35 363 60 Residential Real Estate 302 300 2 327 (25) Construction and Land Development 468 438 30 456 12 Other 225 201 24 132 93 Subtotal $ 6,829 $ 6,551 $ 278 $ 5,332 $ 1,497 SBA PPP loans 397 738 (341) 808 (411) Total Loans $ 7,226 $ 7,289 $ (63) $ 6,140 $ 1,086 *Specialty loan category. 1Includes $686 million and $617 million of SBA guaranteed loans for 2Q21 and 1Q21, respectively. In Millions 6

 
Total Loans By Business Unit In Millions Note: Excludes PPP and Other loans **Acquisition of Seacoast closed on November 12, 2020 *1Q21 and 2Q21 include acquired Seacoast SBA loans 7

 
Specialty Deposits Community Associations $495 million in deposit accounts specifically designed to serve the needs of community associations. Property Management $362 million in deposits. Specializing in the compliance on Property Management Trust Accounts. Third-Party Escrow $101 million in deposits. Growing product line providing independent escrow services. Trust Services $76 million in deposit accounts. Providing services to nondepository trust companies. Specialty deposits of $1.4 billion represent 17% of total deposits. Includes high concentration of noninterest-bearing deposits with a low cost of funds. Other $387 million in deposit accounts primarily related to Sponsor Finance and Life Insurance Premium Financing loans. 4Q20 1Q21 2Q21 Community Assoc Property Mgmt Third- Party Escrow Trust Services Other $— $250 $500 In Millions 8

 
Earnings Per Share Trend - 2Q21 Change in EPS 1Q21 2Q21Net Interest Income Noninterest Income Provision for Credit Losses Merger-Related Expense $0.96 $1.23 Noninterest Expense 9

 
Net Interest Income Trend In Millions 24% NII Growth PPP Income $10.3 PPP Income $4.1 PPP Income $5.2 PPP Income $8.5 PPP Income $7.9 *Seacoast acquisition completed 11/12/20. 10

 
Net Interest Margin Components of Interest-bearing LiabilitiesComponents of Interest-earning Assets 1Q21 3.50 % Cash/Liquidity (0.05) % Loans 0.01 % Investments (0.01) % Cost of funds 0.01 % 2Q21 3.46 % Net Interest Margin Trend Net Interest Margin Bridge 0.37% 11

 
Credit Trends for Loans 2Q21 1Q21 2Q20 NPAs/Assets 0.44% 0.42% 0.55% NPLs/Loans 0.58% 0.50% 0.68% ALLL/NPLs 303.4% 358.8% 265.9% ALLL/Loans** 2.09% 2.22% 2.07% Net Charge-offs (Recoveries) In Millions bps bps bps bps bps In Millions Loan Growth and Line of Credit Utilization* *Excludes acquisition of Seacoast for 4Q20 **Excludes guaranteed loans. 12

 
Allowance for Credit Losses for Loans In Thousands $131,527 $128,185• New loans and changes in composition of existing loans • Changes in risk ratings, past due status and reserves on individually evaluated loans • Charge-offs and recoveries 2Q21 In Thousands ACL Loans ACL as a % of Loans Commercial and industrial $ 53,351 $ 2,930,805 1.82 % Commercial real estate 51,567 3,200,748 1.61 % Construction real estate 11,632 556,776 2.09 % Residential real estate 4,677 305,497 1.53 % Other 6,958 232,441 2.99 % Total loans $ 128,185 $ 7,226,267 1.77 % Reserves on sponsor finance, which is included in the categories above, represented $20.1 million. Total ACL percentage of loans excluding PPP and other government guaranteed loans was 2.09% Key Assumptions: • Reasonable and supportable forecast period is one year with a one year reversion period. • Forecast considers a weighted average of baseline, upside and downside scenarios. • Primary macroeconomic factors: ◦ Percentage change in GDP ◦ Unemployment ◦ Retail Sales ◦ CRE Index 13

 
Noninterest Income Trend Other Fee Income DetailFee Income In Millions 13.1% 16.6% 19.3% 12.5% 16.5% 14

 
Operating Expenses Trend * A Non-GAAP Measure, Refer to Appendix for Reconciliation In Millions 15

 
Capital *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Excludes PPP loans. 8.0% 11.4% 11.6% 12.1% 12.3% 12.3% EFSC Capital Strategy: Low Cost - Highly Flexible High Capital Retention Rate – Strong earnings profile – Sustainable dividend profile Supporting Robust Asset Growth – Organic loan and deposit growth – High quality M&A to enhance commercial franchise and geographic diversification Maintain High Quality Capital Stock – Minimize WACC over time (preferred, sub debt, etc.) – Optimize capital levels T1 Common ~10%, Tier 1 ~12%, and Total Capital ~14% Maintain 8-9% TCE – Common stock repurchases – 251,637 repurchased at average price of $47.00 in 2Q21 – M&A deal structures – Drives ROATCE above peer levels TBV and Dividends per Share $24.22 $24.80 $25.48 $25.92 $26.85 $0.18 $0.18 $0.18 $0.18 $0.18 TBV/Share Dividends per Share 2Q20 3Q20 4Q20 1Q21 2Q21 16

 
Appendix Second Quarter 2021 Earnings Webcast

 
Earnings Per Share Trend: Year-over-Year 2Q20 YTD Net Interest Income Provision for Credit Losses Noninterest Income 2Q21 YTDChange in Shares Noninterest Expense Merger-Related Expense Change in EPS $1.04 $2.18 Change in Effective Tax Rate 18

 
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, ROATCE, PPNR, PPNR ROAA, financial metrics adjusted for PPP impact, 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, ROATCE, PPNR, PPNR ROAA, financial metrics adjusted for PPP impact, 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 non-core acquired loans, which were acquired from the FDIC and previously covered by loss share agreements, and the related income and expenses, the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures include contractual interest on non-core acquired loans, but exclude incremental accretion on these loans. Core performance measures also exclude expenses directly related to non-core acquired loans. Core performance measures also 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. 19

 
Reconciliation of Non-GAAP Financial Measures 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 % 20

 
Reconciliation of Non-GAAP Financial Measures 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 - Non-GAAP 1.85 % 1.66 % 2.07 % 1.81 % 1.87 % Quarter ended ($ in thousands) Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 IMPACT OF PAYCHECK PROTECTION PROGRAM Tangible assets - Non-GAAP (see reconciliation above) $ 10,066,068 $ 9,908,462 $ 9,467,920 $ 8,135,812 $ 8,123,961 PPP loans outstanding, net (396,660) (737,660) (698,645) (819,100) (807,814) Adjusted tangible assets - Non-GAAP $ 9,669,408 $ 9,170,802 $ 8,769,275 $ 7,316,712 $ 7,316,147 Tangible common equity Non - GAAP (see reconciliation above) $ 837,376 $ 810,260 $ 795,324 $ 650,103 $ 634,423 Tangible common equity to tangible assets 8.32 % 8.18 % 8.40 % 7.99 % 7.81 % Tangible common equity to tangible assets - adjusted tangible assets 8.66 % 8.84 % 9.07 % 8.89 % 8.67 % AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY Average shareholder’s equity $ 1,116,969 Less average goodwill 260,567 Less average intangible assets 20,997 Average tangible common equity $ 835,405 Return on average tangible common equity 18.44 % 21

 
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 — Less: Non-recurring excise tax — — — — — — — 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 % 22

 
Q & A Second Quarter 2021 Earnings Webcast

 

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