Exhibit 99.1
For more information
contact:
Peter Benoist, President and CEO
(314) 725-5500
Frank Sanfilippo, Chief
Financial Officer (314) 725-5500
Jerry
Mueller, Senior Vice President (314) 512-7251
Ann Marie Mayuga, AMM Communications (314) 485-4390
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ENTERPRISE FINANCIAL REPORTS FIRST QUARTER 2009 RESULTS
|
St. Louis, April 27, 2009. Enterprise Financial Services Corp (NASDAQ: EFSC) reported a net loss of $50.6 million, or $3.99 per common diluted share, for the quarter ended March 31, 2009, compared to net income of $3.6 million, or $0.28 per share, for the prior year period. The reported net loss was primarily attributable to a $45.4 million non-cash accounting charge to eliminate goodwill related to the Company’s banking segment. The Company also recorded $15.1 million in loan loss provision for the quarter compared to $2.3 million in the first quarter of 2008.
The goodwill impairment charge is a non-cash accounting adjustment that does not reduce the Company’s regulatory or tangible capital position, liquidity or cash flow and does not impact the Company’s operations.
On a pre-tax, pre-provision basis, absent the goodwill impairment charge, the Company’s operating earnings were $7.6 million for the quarter ended March 31, 2009, 5% higher than the comparable figure for the quarter ended March 31, 2008.
Pre-tax, pre-provision operating earnings figures, which are non-GAAP (Generally Accepted Accounting Principles) financial measures, are presented because the Company believes adjusting its results to exclude loan loss provision expenses, impairment charges and extraordinary gains or losses provides shareholders with a more comparable basis for evaluating period-to-period operating results. A schedule reconciling GAAP net (loss) income to pre-tax, pre-provision operating earnings is provided in the attached tables.
Peter Benoist, President and CEO, commented, “Our action to write-off the goodwill associated with our banking segment was driven by the extraordinary market conditions that have depressed bank stocks, including our own. Our valuation analysis after the first quarter indicated goodwill impairment and, given the uncertainty and cynicism about banking asset valuations in general, we eliminated the banking goodwill entirely from our balance sheet. While this accounting charge impacts our reported earnings, it has no effect on the operation of our business or service to our clients. It doesn’t reduce our regulatory capital ratios or cash flow.”
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Benoist continued, “From an operating perspective, during the first quarter, we continued to aggressively bolster our loan loss reserves to 2.02% of loans as a result of the deepening recession impacting the economy, particularly in the real estate segments. Increases in non performing assets primarily relate to credit issues in the Kansas City market, while credit quality in the St. Louis portfolio continues to remain stable. Additionally, we have improved our deposit mix during the quarter and capital ratios remain strong. We expect improvement in credit quality in the second half of the year as we work through the current credit cycle.”
Banking Line of Business
Goodwill Impairment
Charge
The goodwill impairment charge was
driven primarily by the deterioration in the general economic environment and
the resulting decline in the Company’s share price and market capitalization in
the first quarter. After completing the required goodwill impairment testing,
the Company recorded a $45.4 million non-cash accounting charge to eliminate
banking segment goodwill from the balance sheet. This charge reduced reported
earnings for the first quarter, but has no effect on regulatory capital ratios
or tangible common equity ratios. The charge has no impact on liquidity, cash
flow or the Company’s operations.
Deposits and
Liquidity
Total deposits at March 31, 2009
rose $155 million, or 10%, from a year ago. Core deposits increased $43 million,
or 3%, over the same period. On a linked quarter basis, core deposits increased
$31 million, or 2%, while wholesale funding declined slightly. Core deposits
typically decline in the first quarter, but a deposit promotional campaign
raised approximately $90 million in new funds, offsetting the seasonal deposit
losses.
Core deposits include certificates of deposit sold to Bank clients through the CDARS program, totaling $97 million at quarter end versus $60 million at year end 2008. Most of the increase represents new deposits and the rest relates to transfers from existing money market accounts.
Loans
Portfolio loans increased $238 million, or 14%, compared to last year’s
first quarter. Most of the loan growth was related to commercial and industrial
businesses. On a linked quarter basis, net loans were essentially level, with
payoffs/paydowns and net charge-offs offsetting loan fundings.
The Company continues to deploy its capital in support of lending activities during this period of financial industry turmoil. From the December 2008 capital investment by the U.S. Treasury through March 31, 2009, the Bank funded over $66 million in new loans and advanced $90 million on existing commitments.
Asset Quality
Non-performing loans, including non-accrual loans, totaled
$50.5 million at March 31, 2009, or 2.57% of total loans, compared to $29.7
million, or 1.50% of total loans, at December 31, 2008 and $9.3 million, or
0.54%, at March 31, 2008. Loans 30-90 days past-due, excluding non-performing
loans, represented 0.94% of loans at March 31, 2009 compared to 0.70 % at year
end 2008.
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Non-performing loans comprised the following industry segments at the respective dates (in millions):
| March 31, 2009 | December 31, 2008 | |||||||||
| Commercial real estate | $ | 29.2 | $ | 16.1 | ||||||
| Residential construction/Land | ||||||||||
| Acquisition and Development | 16.9 | 11.8 | ||||||||
| Commercial and industrial | 4.4 | 1.7 | ||||||||
| Other | - | 0.1 | ||||||||
| $ | 50.5 | $ | 29.7 | |||||||
The $50.5 million in non-performing loans is comprised of 38 relationships with the largest being a $7.0 million loan secured by a medical office building. Approximately two-thirds of the non-performing loans are located in the Kansas City market. Most of the increase in commercial real estate non-performing loans relates to commercial ground where development activity has slowed.
Other real estate at March 31, 2009 was $13.3 million, a decrease of $617,000 from December 31, 2008 and an increase of $5.5 million from the year ago period. The Company recorded a small gain on the sale of other real estate owned in the first quarter. Residential lots and completed homes represented 89% of other real estate owned at March 31, 2009. All properties are in the Company’s St. Louis and Kansas City markets.
Total non-performing assets were $63.8 million, or 2.86% of total assets, at March 31, 2009 compared to 1.92% of total assets at December 31, 2008 and 0.83% at March 31, 2008.
Provision for loan losses was $15.1 million in the first quarter of 2009 compared to $14.1 million in the fourth quarter of 2008 and $2.3 million in the first quarter of 2008. Provision expense covered 222% of net charge offs as the Company continued to build reserves to 2.02% of portfolio loans at March 31, 2009 compared to 1.58% at December 31, 2008 and 1.29% at March 31, 2008. Loan loss provision in the first quarter was driven by higher levels of nonperforming loans, declining real estate values on collateral for certain impaired credits and adverse risk rating changes on performing loans.
Net charge-offs were $6.8 million in the first quarter, representing an annualized rate of 1.39% of average loans. The largest charge-off in the first quarter was a $1.9 million loss on a C&I business that failed. The remaining charge-offs resulted from declining fair value on real estate collateral securing certain impaired loans. By comparison, net charge-offs were $8.5 million, or an annualized rate of 1.73%, in the fourth quarter of 2008 and $1.7 million, or 0.40% annualized, in the first quarter of 2008.
Commenting on asset quality, Steve Marsh, Chairman and CEO of Enterprise Bank & Trust, the Company’s principal subsidiary, said, “As we’ve noted over the past several quarters, we expect non-performing asset levels to remain elevated. Our non-performing credits continue to be relatively concentrated in residential and certain commercial real estate segments, and those areas remain stressed with persistent downward pressure on valuations. At the same time, we are encouraged by early signs of increased residential sales activity, as the extraordinarily low interest rates are starting to attract buyers back into the market.”
Marsh continued, “Despite the slumping economy, we haven’t seen significant credit weakness spread to other segments of our portfolio. We are staying close to our clients and monitoring the trends carefully.”
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Net interest
income
Net interest income in the banking
segment increased $1.0 million, or 6%, in the first quarter of 2009 versus the
same quarter in 2008. On a linked quarter basis, net interest income was
$227,000, or 1% lower than the fourth quarter of 2008.
Including the effects of holding company debt, the net interest rate margin declined to 3.32 % in the first quarter compared to 3.63% in the year-ago period, due to sharply falling interest rates, higher levels of nonperforming assets and higher levels of more expensive wholesale funding to support loan growth. The net interest rate margin in the first quarter was five basis points lower than in the fourth quarter last year. The margin is stabilizing as a result of improved loan pricing that is largely offsetting the effects of higher non-performing assets and interest costs associated with the recent deposit campaign.
Wealth Management Line of Business
Fee income from the Wealth Management line of business, including results from state tax credit brokerage activities, totaled $3.2 million for the first quarter of 2009, a 10% decline from the same period in 2008.
Trust
Fee income from Trust declined $284,000, or 19%, in the first quarter of
2009 compared to the similar period in 2008. Revenue declines over the past
twelve months were largely attributable to lower asset values due to market
conditions.
In March, Enterprise Trust appointed Brendan Freeman as President of its Advisory Services Group. Freeman was formerly Senior Vice President at U.S. Trust, Bank of America’s wealth management arm.
Millennium Brokerage
Group
MBG revenues increased $972,000, or
89%, in the first quarter compared to the same period last year, due to the
successful completion of several large insurance cases. For the full year 2009,
the Company expects MBG cash earnings to be flat compared to 2008. While market
conditions remain difficult, the Company continues to examine strategic
alternatives for its wholesale life insurance distribution subsidiary.
State Tax Credit
Brokerage
For the first quarter of 2009,
the Company recorded a $46,000 loss on state tax credit activities compared to a
$1.0 million gain in the first quarter of 2008. During the first quarter,
$570,000 in gains from the sale of state tax credits were more than offset by a
$533,000 reduction in fair value of the tax credit assets under FAS 159 and an
$84,000 reduction in fair value of related interest rate caps. The interest rate
caps were purchased in the fourth quarter of 2008 to offset volatility in the
value of tax credit assets. The caps have performed generally as expected on a
life-to-date basis, but were not effective during the first quarter
period.
Other Business Results
Miscellaneous (loss) income for the first quarter of 2009 includes a $530,000 loss on the termination of two cash flow hedges. The fourth quarter of 2008 included $639,000 of gain reclassified from accumulated other comprehensive income to earnings for measured ineffectiveness of these same cash flow hedges. Based on the increased loan pricing available in the current markets and the potential earnings volatility associated with ineffective cash flow hedges, the Company settled the interest rate swaps with the counterparty.
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Given the anticipated acceleration in prepayments on mortgage-backed securities and resultant loss in fair value, the Company elected to sell certain securities and generated a pre-tax gain of $316,000 in the first quarter 2009.
Noninterest expenses, absent the impairment charge, for the three months ended March 31, 2009 were $297,000, or 2% higher than the same period of 2008. Employee compensation and benefits declined $1.3 million, or 15%, over the same period due to staff reductions and reduced incentive compensation. These expense reductions were offset by higher legal and other collection expenses associated with nonperforming assets and higher FDIC insurance premiums.
Excluding the impairment charge, the Company’s efficiency ratio in the first quarter of 2009 was 65.0% versus 63.8% for the comparable period last year.
Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis and Kansas City and a loan production office in Phoenix. Enterprise is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.
# # #
Readers should note that in addition to the historical information contained herein, this press release contains forward-looking statements, which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those contemplated from such statements. We use the words “expect” and “intend” and variations of such words and similar expressions in this communication to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, burdens imposed by federal and state regulations of banks, credit risk, exposure to local and national economic conditions, risks associated with rapid increase or decrease in prevailing interest rates, effects of mergers and acquisitions, effects of critical accounting policies and judgments, legal and regulatory developments and competition from banks and other financial institutions, as well as other risk factors described in Enterprise Financial’s 2008 Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.
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ENTERPRISE FINANCIAL SERVICES
CORP
CONSOLIDATED FINANCIAL SUMMARY
(unaudited)
| (In thousands, except per share data) | For the Quarter Ended | |||||||||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||||||||||||||||
| INCOME STATEMENTS | 2009 | 2008 | 2008 | 2008 | 2008 | |||||||||||||||
| NET INTEREST INCOME | ||||||||||||||||||||
| Total interest income | $ | 27,326 | $ | 29,163 | $ | 29,289 | $ | 29,283 | $ | 30,246 | ||||||||||
| Total interest expense | 10,475 | 11,963 | 12,705 | 12,481 | 14,109 | |||||||||||||||
| Net interest income | 16,851 | 17,200 | 16,584 | 16,802 | 16,137 | |||||||||||||||
| Provision for loan losses | 15,100 | 14,125 | 2,825 | 3,200 | 2,325 | |||||||||||||||
| Net interest income after provision for loan losses | 1,751 | 3,075 | 13,759 | 13,602 | 13,812 | |||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||
| Wealth Management revenue | 3,271 | 2,943 | 2,640 | 2,682 | 2,583 | |||||||||||||||
| Deposit service charges | 1,295 | 1,135 | 1,102 | 1,202 | 937 | |||||||||||||||
| Sale of other real estate | 59 | (31 | ) | 242 | 351 | (9 | ) | |||||||||||||
| State tax credit activity, net | (46 | ) | 2,624 | 593 | (29 | ) | 1,012 | |||||||||||||
| Sale of securities | 316 | 88 | - | 73 | - | |||||||||||||||
| Sale of branch/charter | - | - | 2,840 | (19 | ) | 579 | ||||||||||||||
| Other income | 1 | 891 | 224 | 184 | 436 | |||||||||||||||
| Total noninterest income | 4,896 | 7,650 | 7,641 | 4,444 | 5,538 | |||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||
| Salaries and benefits | 7,090 | 7,317 | 7,792 | 7,575 | 8,340 | |||||||||||||||
| Occupancy | 1,167 | 1,086 | 1,100 | 977 | 1,083 | |||||||||||||||
| Furniture and equipment | 364 | 405 | 346 | 355 | 364 | |||||||||||||||
| Impairment charges | 45,377 | 3,300 | 5,900 | - | - | |||||||||||||||
| Other | 5,509 | 5,709 | 3,995 | 3,816 | 4,045 | |||||||||||||||
| Total noninterest expense | 59,507 | 17,817 | 19,133 | 12,723 | 13,832 | |||||||||||||||
| (Loss) income before income tax | (52,860 | ) | (7,092 | ) | 2,267 | 5,323 | 5,518 | |||||||||||||
| Income tax (benefit) expense | (2,243 | ) | (3,140 | ) | 948 | 1,823 | 1,955 | |||||||||||||
| Net (loss) income | (50,617 | ) | (3,952 | ) | 1,319 | 3,500 | 3,563 | |||||||||||||
| Dividends on preferred stock | (599 | ) | (79 | ) | - | - | - | |||||||||||||
| Net income available to common shareholders | $ | (51,216 | ) | $ | (4,031 | ) | $ | 1,319 | $ | 3,500 | $ | 3,563 | ||||||||
| Basic (loss) earnings per share | $ | (3.99 | ) | $ | (0.32 | ) | $ | 0.10 | $ | 0.28 | $ | 0.29 | ||||||||
| Diluted (loss) earnings per share | $ | (3.99 | ) | $ | (0.32 | ) | $ | 0.10 | $ | 0.27 | $ | 0.28 | ||||||||
| Return on average assets | (9.13% | ) | (0.71% | ) | 0.24% | 0.67% | 0.73% | |||||||||||||
| Return on average common equity | (113.35% | ) | (8.63% | ) | 2.81% | 7.77% | 8.13% | |||||||||||||
| Efficiency ratio | 273.63% | 71.70% | 78.98% | 59.88% | 63.82% | |||||||||||||||
| Noninterest expense to average assets | 10.61% | 3.15% | 3.48% | 2.43% | 2.82% | |||||||||||||||
| YIELDS (fully tax equivalent) | ||||||||||||||||||||
| Loans | 5.41% | 5.74% | 5.94% | 6.30% | 6.93% | |||||||||||||||
| Securities | 4.44% | 4.70% | 4.75% | 4.60% | 4.84% | |||||||||||||||
| Federal funds sold | 0.64% | 1.59% | 2.12% | 1.85% | 3.32% | |||||||||||||||
| Yield on earning assets | 5.33% | 5.67% | 5.86% | 6.17% | 6.77% | |||||||||||||||
| Interest-bearing deposits | 2.13% | 2.47% | 2.72% | 2.78% | 3.46% | |||||||||||||||
| Subordinated debt | 6.43% | 6.04% | 5.63% | 5.66% | 6.71% | |||||||||||||||
| Borrowed funds | 2.11% | 2.67% | 2.98% | 3.44% | 3.82% | |||||||||||||||
| Cost of paying liabilities | 2.33% | 2.62% | 2.85% | 2.97% | 3.62% | |||||||||||||||
| Net interest spread | 3.00% | 3.05% | 3.01% | 3.20% | 3.15% | |||||||||||||||
| Net interest rate margin | 3.32% | 3.37% | 3.34% | 3.56% | 3.63% | |||||||||||||||
RECONCILATION OF PRE-TAX (LOSS) INCOME TO PRE-TAX OPERATING EARNINGS BEFORE PROVISION
| For the Quarters Ended | ||||||||||||
| Mar 31, | Dec 31, | Mar 31, | ||||||||||
| (All amounts, in thousands) | 2009 | 2008 | 2008 | |||||||||
| U.S. GAAP (loss) income before income tax expense | $ | (52,860 | ) | $ | (7,092 | ) | $ | 5,518 | ||||
| Impairment charges | 45,377 | 3,300 | - | |||||||||
| Sale of Kansas City nonstrategic branches/charter | - | - | (579 | ) | ||||||||
| Employee retention agreement | - | 875 | - | |||||||||
| Operating (loss) earnings before income taxes | (7,483 | ) | (2,917 | ) | 4,939 | |||||||
| Provision for loan losses | 15,100 | 14,125 | 2,325 | |||||||||
| Operating earnings before income taxes and provision for loan losses | $ | 7,617 | $ | 11,208 | $ | 7,264 | ||||||
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ENTERPRISE FINANCIAL SERVICES
CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)
| (In thousands) | |||||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||
| BALANCE SHEETS | 2009 | 2008 | 2008 | 2008 | 2008 | ||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 41,875 | $ | 25,626 | $ | 38,641 | $ | 67,661 | $ | 64,108 | |||||
| Federal funds sold | 3,310 | 2,637 | 1,718 | 15,630 | 954 | ||||||||||
| Interest-bearing deposits | 5,852 | 14,384 | 2,178 | 349 | 6,435 | ||||||||||
| Debt and equity investments | 123,773 | 108,315 | 113,932 | 120,072 | 116,810 | ||||||||||
| Loans held for sale | 2,659 | 2,632 | 520 | 1,666 | 3,422 | ||||||||||
| Portfolio loans | 1,963,975 | 1,977,175 | 1,942,600 | 1,849,415 | 1,726,455 | ||||||||||
| Less allowance for loan losses | 39,612 | 31,309 | 25,662 | 24,011 | 22,249 | ||||||||||
| Net loans | 1,924,363 | 1,945,866 | 1,916,938 | 1,825,404 | 1,704,206 | ||||||||||
| Other real estate | 13,251 | 13,868 | 11,285 | 9,294 | 7,736 | ||||||||||
| Premises and equipment, net | 24,608 | 25,158 | 25,166 | 25,238 | 24,775 | ||||||||||
| State tax credits, held for sale | 43,474 | 39,142 | 37,751 | 37,882 | 27,309 | ||||||||||
| Goodwill | 3,134 | 48,512 | 51,312 | 57,910 | 58,331 | ||||||||||
| Core deposit intangible | 1,997 | 2,126 | 2,256 | 2,729 | 2,887 | ||||||||||
| Other amortizing intangibles | 1,230 | 1,378 | 2,090 | 2,301 | 2,512 | ||||||||||
| Other assets | 41,177 | 40,530 | 32,614 | 31,582 | 28,393 | ||||||||||
| Total assets | $ | 2,230,703 | $ | 2,270,174 | $ | 2,236,401 | $ | 2,197,718 | $ | 2,047,878 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
| Noninterest-bearing deposits | $ | 238,449 | $ | 247,361 | $ | 225,013 | $ | 240,148 | $ | 232,121 | |||||
| Interest-bearing deposits | 1,507,110 | 1,545,423 | 1,463,040 | 1,429,598 | 1,358,588 | ||||||||||
| Total deposits | 1,745,559 | 1,792,784 | 1,688,053 | 1,669,746 | 1,590,709 | ||||||||||
| Subordinated debentures | 85,081 | 85,081 | 59,307 | 56,807 | 56,807 | ||||||||||
| FHLB advances | 119,939 | 119,957 | 222,926 | 203,043 | 154,405 | ||||||||||
| Federal funds purchased | 74,400 | 19,400 | 36,600 | 1,081 | - | ||||||||||
| Other borrowings | 31,767 | 26,760 | 36,632 | 71,805 | 53,508 | ||||||||||
| Other liabilities | 7,073 | 8,404 | 7,924 | 12,335 | 14,212 | ||||||||||
| Total liabilities | 2,063,819 | 2,052,386 | 2,051,442 | 2,014,817 | 1,869,641 | ||||||||||
| Shareholders' equity | 166,884 | 217,788 | 184,959 | 182,901 | 178,237 | ||||||||||
| Total liabilities and shareholders' equity | $ | 2,230,703 | $ | 2,270,174 | $ | 2,236,401 | $ | 2,197,718 | $ | 2,047,878 | |||||
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ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)
| (In thousands, except per share data) | For the Quarter Ended | |||||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||||||||||||
| 2009 | 2008 | 2008 | 2008 | 2008 | ||||||||||||
| EARNINGS SUMMARY | ||||||||||||||||
| Net interest income | $ | 16,851 | $ | 17,200 | $ | 16,584 | $ | 16,802 | $ | 16,137 | ||||||
| Provision for loan losses | 15,100 | 14,125 | 2,825 | 3,200 | 2,325 | |||||||||||
| Wealth Management revenue | 3,271 | 2,943 | 2,640 | 2,682 | 2,583 | |||||||||||
| Noninterest income | 1,625 | 4,707 | 5,001 | 1,762 | 2,955 | |||||||||||
| Noninterest expense | 59,507 | 17,817 | 19,133 | 12,723 | 13,832 | |||||||||||
| (Loss) income before income tax | (52,860 | ) | (7,092 | ) | 2,267 | 5,323 | 5,518 | |||||||||
| Net (loss) income | (50,617 | ) | (3,952 | ) | 1,319 | 3,500 | 3,563 | |||||||||
| Diluted (loss) earnings per share | $ | (3.99 | ) | $ | (0.32 | ) | $ | 0.10 | $ | 0.27 | $ | 0.28 | ||||
| Return on average common equity | (113.35% | ) | (8.63% | ) | 2.81% | 7.77% | 8.13% | |||||||||
| Net interest rate margin (fully tax equivalized) | 3.32% | 3.37% | 3.34% | 3.56% | 3.63% | |||||||||||
| Efficiency ratio | 273.63% | 71.70% | 78.98% | 59.88% | 63.82% | |||||||||||
| MARKET DATA | ||||||||||||||||
| Book value per common share | $ | 10.28 | $ | 14.28 | $ | 14.57 | $ | 14.45 | $ | 14.27 | ||||||
| Tangible book value per common share | $ | 9.78 | $ | 10.22 | $ | 10.19 | $ | 9.48 | $ | 9.17 | ||||||
| Market value per share | $ | 9.76 | $ | 15.24 | $ | 22.56 | $ | 18.85 | $ | 25.00 | ||||||
| Period end common shares outstanding | 12,833 | 12,801 | 12,694 | 12,654 | 12,487 | |||||||||||
| Average basic common shares | 12,828 | 12,702 | 12,664 | 12,545 | 12,441 | |||||||||||
| Average diluted common shares | 12,834 | 12,768 | 12,817 | 12,760 | 12,675 | |||||||||||
| ASSET QUALITY | ||||||||||||||||
| Net charge-offs | $ | 6,797 | $ | 8,478 | $ | 1,123 | $ | 1,439 | $ | 1,668 | ||||||
| Nonperforming loans | $ | 50,458 | $ | 29,662 | $ | 23,546 | $ | 13,180 | $ | 9,307 | ||||||
| Nonperforming loans to total loans | 2.57% | 1.50% | 1.21% | 0.71% | 0.54% | |||||||||||
| Nonperforming assets to total assets | 2.86% | 1.92% | 1.56% | 1.02% | 0.83% | |||||||||||
| Allowance for loan losses to total loans | 2.02% | 1.58% | 1.32% | 1.30% | 1.29% | |||||||||||
| Net charge-offs to average loans (annualized) | 1.39% | 1.73% | 0.24% | 0.32% | 0.40% | |||||||||||
| CAPITAL | ||||||||||||||||
| Average common equity to average assets | 8.05% | 8.28% | 8.55% | 8.62% | 8.92% | |||||||||||
| Tier 1 capital to risk-weighted assets | 8.22% | 8.89% | 8.83% | 8.76% | 9.10% | |||||||||||
| Total capital to risk-weighted assets | 12.75% | 12.81% | 10.18% | 9.96% | 10.30% | |||||||||||
| Tangible common equity to tangible assets | 5.64% | 5.90% | 5.93% | 5.62% | 5.77% | |||||||||||
| AVERAGE BALANCES | ||||||||||||||||
| Portfolio loans | $ | 1,980,871 | $ | 1,947,690 | $ | 1,881,428 | $ | 1,790,491 | $ | 1,687,316 | ||||||
| Earning assets | 2,105,599 | 2,071,560 | 2,005,635 | 1,922,309 | 1,810,384 | |||||||||||
| Total assets | 2,275,196 | 2,246,772 | 2,184,804 | 2,102,582 | 1,974,590 | |||||||||||
| Deposits | 1,716,291 | 1,739,525 | 1,645,396 | 1,600,805 | 1,530,158 | |||||||||||
| Shareholders' equity | 218,247 | 190,874 | 186,848 | 181,274 | 176,170 | |||||||||||
| LOAN PORTFOLIO | ||||||||||||||||
| Commercial and industrial | $ | 545,110 | $ | 556,210 | $ | 539,924 | $ | 510,377 | $ | 487,289 | ||||||
| Commercial real estate | 815,971 | 829,476 | 845,221 | 835,688 | 735,087 | |||||||||||
| Construction real estate | 328,594 | 337,550 | 313,262 | 284,556 | 285,966 | |||||||||||
| Residential real estate | 246,057 | 228,772 | 218,642 | 193,630 | 189,549 | |||||||||||
| Consumer and other | 28,243 | 25,167 | 25,550 | 25,164 | 28,564 | |||||||||||
| Total loan portfolio | $ | 1,963,975 | $ | 1,977,175 | $ | 1,942,599 | $ | 1,849,415 | $ | 1,726,455 | ||||||
| DEPOSIT PORTFOLIO | ||||||||||||||||
| Noninterest-bearing accounts | $ | 238,449 | $ | 247,361 | $ | 225,013 | $ | 240,148 | $ | 232,121 | ||||||
| Interest-bearing transaction accounts | 129,389 | 126,644 | 118,614 | 134,659 | 136,009 | |||||||||||
| Money market and savings accounts | 630,744 | 710,712 | 664,436 | 680,635 | 724,725 | |||||||||||
| Certificates of deposit | 746,977 | 708,067 | 679,990 | 614,304 | 497,854 | |||||||||||
| Total deposit portfolio | $ | 1,745,559 | $ | 1,792,784 | $ | 1,688,053 | $ | 1,669,746 | $ | 1,590,709 | ||||||
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ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)
| (In thousands) | For the Quarter Ended | |||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||||||||||
| 2009 | 2008 | 2008 | 2008 | 2008 | ||||||||||
| YIELDS (fully tax equivalent) | ||||||||||||||
| Loans | 5.41% | 5.74% | 5.94% | 6.30% | 6.93% | |||||||||
| Securities | 4.44% | 4.70% | 4.75% | 4.60% | 4.84% | |||||||||
| Federal funds sold | 0.64% | 1.59% | 2.12% | 1.85% | 3.32% | |||||||||
| Yield on earning assets | 5.33% | 5.67% | 5.86% | 6.17% | 6.77% | |||||||||
| Interest-bearing deposits | 2.13% | 2.47% | 2.72% | 2.78% | 3.46% | |||||||||
| Subordinated debt | 6.43% | 6.04% | 5.63% | 5.66% | 6.71% | |||||||||
| Borrowed funds | 2.11% | 2.67% | 2.98% | 3.44% | 3.82% | |||||||||
| Cost of paying liabilities | 2.33% | 2.62% | 2.85% | 2.97% | 3.62% | |||||||||
| Net interest spread | 3.00% | 3.05% | 3.01% | 3.20% | 3.15% | |||||||||
| Net interest rate margin | 3.32% | 3.37% | 3.34% | 3.56% | 3.63% | |||||||||
| WEALTH MANAGEMENT | ||||||||||||||
| Trust Assets under management | $ | 681,839 | $ | 790,646 | $ | 930,100 | $ | 986,717 | $ | 1,046,390 | ||||
| Trust Assets under administration | 1,084,830 | 1,220,733 | 1,453,476 | 1,532,559 | 1,633,195 | |||||||||
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