EX-99.1 2 q12018efscinvestorpresen.htm EXHIBIT MATERIALS BEING PRESENTED IN MEETINGS WITH CERTAIN ANALYSTS
Enterprise Financial Services Corp First Quarter 2018 Investor Presentation

Forward-Looking Statements Some of the information in this report contains “forward-looking statements” within the meaning of and intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified with use of terms such as “may,” “might,” “will, “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “could,” “continue” and the negative of these terms and similar words, although some forward-looking statements may be expressed differently. Forward-looking statements also include, but are not limited to, statements regarding plans, objectives, expectations or consequences of announced transactions and statements about the future performance, operations, products and services of the Company and its subsidiaries. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. You should be aware that our actual results could differ materially from those anticipated by the forward-looking statements or historical performance due to a number of factors, including, but not limited to: our ability to efficiently integrate acquisitions into our operations, retain the customers of these businesses and grow the acquired operations; reputational risks; credit risk; changes in the appraised valuation of real estate securing impaired loans; outcomes of litigation and other contingencies; exposure to general and local economic conditions; risks associated with rapid increases or decreases in prevailing interest rates; consolidation within the banking industry; competition from banks and other financial institutions; our ability to attract and retain relationship officers and other key personnel; burdens imposed by federal and state regulation; changes in regulatory requirements; changes in accounting regulation or standards applicable to banks; and other risks discussed under the caption “Risk Factors” of our most recently filed Form 10-K and in Part II, 1A of our most recently filed Form 10-Q, all of which could cause the Company’s actual results to differ from those set forth in the forward-looking statements. Readers are cautioned not to place undue reliance on our forward-looking statements, which reflect management’s analysis and expectations only as of the date of such statements. Forward-looking statements speak only as of the date they are made, and the Company does not intend, and undertakes no obligation, to publicly revise or update forward-looking statements after the date of this report, whether as a result of new information, future events or otherwise, except as required by federal securities law. You should understand that it is not possible to predict or identify all risk factors. Readers should carefully review all disclosures we file from time to time with the Securities and Exchange Commission (the “SEC”) which are available on our website at www.enterprisebank.com under "Investor Relations." 2

Company Snapshot - EFSC Total Assets FOCUSED BUSINESS MODEL: $ 5.4 Billion • Attract Top Talent in Markets • Proven Ability to Grow Market Cap Commercial & Industrial "C&I" $ Talent Loans 1.2 Billion • Product Breadth ◦ Banking Operates in ◦ Trust & Wealth Management ◦ Treasury Management Strength Kansas City • Strong Balance Sheet with St. Louis Attractive Risk Profile Phoenix MSAs • Concentrated on Private Businesses and Owner Families Passion • Relationship Driven 3

Executive Leadership Team Name, Age, Title Years at Enterprise James B. Lally, 50, President & Chief Executive Officer, EFSC 14 Keene S. Turner, 38, Executive Vice President & Chief Financial Officer, EFSC 4 Scott R. Goodman, 54, President, Enterprise Bank & Trust 14 Douglas N. Bauche, 48, Chief Credit Officer, Enterprise Bank & Trust 18 Mark G. Ponder, 47, SVP & Controller, EFSC and CFO, Enterprise Bank & Trust 6 Nicole M. Iannacone, 38, SVP, General Counsel, and Corporate Secretary 4 Loren E. White, 61, SVP & Head of Human Resources 4 4

Differentiated Business Model: Built for Quality Earnings Growth Focused and Well-Defined Targeted Array of Banking Experienced Bankers and Strategy Aimed at Business and Wealth Management Advisors Owners, Executives and Services to Meet our Client's Professionals. Needs 5

Three Urban Markets Arizona Kansas Loans $305MM $682MM $2.3B Deposits $166MM $718MM $3.4B Branches 2 7 19 Deposit Market Share 1 39th/0.12% 16th/1.29% 5th/4.23% JPMorgan Chase UMB US Bancorp Primary Competitors 1 Wells Fargo Commerce Bank of America Bank of America Bank of America Commerce 1 Source: 6/30/2017 FDIC data, SNL Financial. Excludes single branch institutions. 6

Focused Loan Growth Strategies Specialized Market Segments Represent 29% of Total Portfolio Loans, Offering Competitive Advantages, Risk Adjusted Pricing and Fee Income Opportunities. 5.9% 10.5% Total Portfolio Loans 8.8% Expectations for Future Growth Include 1.4% Continued Focus in these Specialized 2.9% Market Segments. Tax Credit Programs. $244 Million in Loans Outstanding Related to Federal New Markets, Historic and Missouri Affordable Housing Tax Credits. $183 Million in Federal & State New Markets Tax Credits Awarded To Date. Enterprise Value Lending. $439 Million in M&A Related Loans Outstanding, Partnering with PE Firms. Life Insurance Premium Financing. $365 Million in Loans Outstanding Related to High Net Worth Estate Planning. Aircraft Lending. $56 Million in Loans Outstanding. Agriculture Lending. $119 Million in Loans Outstanding. 7

History of Strong C&I Growth $1,982 In Millions $1,774 16% 5-Year CAGR $1,545 $1,259 $1,060 $949 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1 '17 Q1 '18 8

Buying Process 9

Customer Focus Source: Greenwich Associates 10

Portfolio Loan Trends 8% Total Loan Growth In Millions $4,162 $3,997 $4,067 $3,853 $3,859 Q1' 17 Q2' 17 Q3 '17 Q4' 17 Q1' 18 11

Drivers of Loan Growth March 31, 2016 – March 31, 2017 March 31, 2017 – March 31, 2018 $1.0 Billion $309 Million Commercial/ General Commercial & Construction RE 12% Industrial 4% Residential RE 4% Life Insurance Premium Commercial/ Consumer and Other Construction RE 32% Finance 4% 3% Enterprise Value Lending Tax Credits 26% 7% General Commercial & Industrial 9% Agriculture 16% JCB Acquisition Life Insurance Premium 66% Finance 14% Enterprise Value Lending 3% 12

Attractive Deposit Mix March 31, 2018 $4.3B DDA • Significant DDA Composition 26% • Stable Cost of Deposits Interest Bearing • Improving Core Funding Transaction Accts 20% In Millions 25.7% 26.0% 25.8% 27.0% 25.7% 39% $4,281 $4,156 MMA & $4,032 $4,059 15% $3,921 Savings CD Cost of Deposits 0.61% 6% Core Deposit Growth Q1 2017 – Q1 2018 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Deposits DDA % 13

Core Funding Mix By Business Line In Millions Consumer $1,429 39% Commercial $1,666 46% Business Banking $544 15% Commercial Business Banking Consumer 1% 2% 2% 3% 1% 3% 6% 9% 26% 43% 18% 32% 18% 54% 20% 29% 21% 12% Notes: Excludes brokered deposits 14

Financial Scorecard Q1 2018 Compared to Q1 2017 42% Continued Growth in Core EPS 21% 11 bps 2% Drive Net Interest Defend Net Interest Achieve Further Income Growth in Margin Improvement in Dollars with Favorable Operating Leverage Loan Growth Trends 6% Enhance Deposit Levels to Support Growth Core EPS: $0.84 Core ROAA: 1.49% 15

Earnings Per Share - Q1 2018 Reported vs. Core EPS* $(0.06) $0.90 $0.84 EPS Non-Core Core EPS Acquired Assets * A Non-GAAP Measure, Refer to Appendix for Reconciliation 16

Earnings Per Share Trend - Q1 2018 Changes in Core EPS* $0.04 $0.02 $(0.08) $0.12 $(0.03) $0.84 $0.77 Q4 '17 Net Interest Portfolio Loan Noninterest Noninterest Income Tax Q1 '18 Income Loss Provision Income Expense Expense Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation 17

Core Net Interest Income Trend* In Millions 3.76% 3.75% 3.73% 3.74% 3.63% $45.4 $44.1 $44.9 $43.0 $37.6 21% Core NII Growth Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Core Net Interest Income FTE Core Net Interest Margin Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 18

Credit Trends for Portfolio Loans Net Charge-offs (1) Portfolio Loan Growth $138 61 bps In Millions $95 33 bps $70 $56 8bps (1) bps (2)bps $7 (2) Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 In Millions Provisions for Portfolio Loans Q1 2018 EFSC Peer(3) $3.6 $3.2 NPA’s/Assets = 0.30% 0.49% $2.4 NPL’s/Loans = 0.38% 0.62% $1.9 ALLL/NPL’s = 254.0% 145.2% $1.5 ALLL/Loans = 0.98% 0.99% Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 (1) Portfolio loans only, excludes non-core acquired loans; (2) Excludes acquisition of Jefferson County (3) Bancshares ("JCB"); Peer median data as of 12/31/2017 (source: SNL Financial) 19

Core Fee Income* In Millions Core Fee Income Other Core Fee Income Detail $11.1 $1.5 $2.3 $0.2 $8.4 $8.5 $1.9 $7.9 $2.2 $0.2 $1.8 $1.7 $0.1 $7.0 $1.5 $1.5 $0.1 $1.4 $1.5 $0.1 $0.2 $0.1 $0.2 $0.1 $0.6 $0.2 $1.0 $2.3 $0.1 $0.2 $0.2 $1.7 $1.9 $1.8 $1.5 $0.4 $0.4 $2.9 $0.2 $2.8 $2.8 $2.9 $1.5 $1.5 $2.5 $1.3 $1.0 $0.8 $1.8 $2.0 $2.1 $2.2 $2.1 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Wealth Management Deposit Services Charge Miscellaneous Swap Fees CDE Other State Tax Credits Mortgage Card Services Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 20

Operating Expenses Trend* In Millions 56.0% 54.5% 54.0% 51.6% 50.2% $29.1 $27.8 $28.1 $27.1 $24.9 $15.3 $16.5 $15.8 $15.1 $15.2 $2.4 $2.3 $2.4 $2.4 $1.9 $9.7 $9.6 $10.4 $10.2 $7.8 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Other Occupancy Employee compensation and benefits Core Efficiency Ratio* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 21

Positive Momentum in Core Earnings Per Share* $0.84 $0.77 Four-Year CAGR 32% $0.66 $0.59 $0.59 $0.56 $0.49 $0.49 $0.49 $0.47 $0.44 $0.37 $0.38 $0.35 $0.33 $0.31 $0.28 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 200% Core EPS Growth from Q1 2014 to Q1 2018 Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 22

Five-Year Financial Highlights In Thousands, except per share date 2018 Q1 2017 2016 2015 2014 Core Net Interest Income $45,405 $169,586 $123,515 $107,618 $98,438 Total Core Non-Interest Income $8,520 $34,378 $26,787 $25,575 $24,548 Core Net Income $19,585 $59,912 $41,237 $33,791 $26,043 Core Earnings Per Share (diluted) $0.84 $2.58 $2.03 $1.66 $1.29 Core Return on Average Tangible 18.64% 14.46% 12.18% 11.22% 9.77% Common Equity Core Return on Average Assets 1.49% 1.20% 1.09% 1.00% 0.82% Total Assets $5,383,102 $5,289,225 $4,081,328 $3,608,483 $3,277,003 Note: Core is a Non-GAAP Measure, Refer to Appendix for Reconciliation 23

Capital Levels Prudently Managed to Facilitate Growth and Returns In Millions Core ROATCE Capital Uses the Past 5 Years 20.0% 18.64% $250 18.0% $200 $175 16.0% $142 14.46% $150 14.0% $100 12.18% 12.0% 11.22% $34 $50 $25 9.77% 10.0% $0 h A e s t & as d ow M h en 8.0% r rc id G u iv ep D 2014 2015 2016 2017 2018 Q1 R re ha S 24

Enterprise Financial • Highly Focused, Proven Business Model • Strong Track Record of Commercial Loan Growth • Differentiated Competitive Lending Expertise • Enhanced Core Funding Capabilities • Increased Returns and Enhanced Shareholder Value 3-Year Total Shareholder Return 5-Year Total Shareholder Return 254% 135% 134% 64% EFSC Index EFSC Index Note: Index = SNL U.S. Bank $5B - $10B, as of 3/31/2018 25

1st Quarter 2018 EFSC Investor Presentation Appendix

Acquisition of Jefferson County Bancshares, Inc. (JCB) Closed February 10, 2017 Snapshot • Consistent with M&A Expansion Strategy • Enhanced EFSC's footprint in the St. Louis MSA, while building total balance sheet size to $5 billion in assets • Top five deposit market share in St. Louis MSA Achievements • Successfully completed core systems conversion on May 22, 2017 • Expanded branch presence • ~$4 billion of deposits • Strengthens & diversifies core deposit gathering capabilities • Approximately $60 million in deposits per branch 27

Effective Tax Rate Reconciliation Q1 2018 2017 Q4 2017 Federal Tax Rate 21.00% 35.00% 35.00% State Tax, Net of Federal Benefit 2.65% 1.94% 1.94% Excess Tax Benefits (4.06)% (2.47)% (1.25)% Tax Credit Investments (3.98)% (1.89)% (3.62)% Other Tax Adjustments (0.31)% (2.28)% (3.90)% Pre-DTA Effective Tax Rate 15.30% 30.30% 28.17% Deferred Tax Asset Revaluation —% 14.00% 44.30% Ending Effective Tax Rate 15.30% 44.30% 72.47% 28

Balance Sheet Positioned for Growth Modest Asset High-quality, 59% Floating Cash-flowing 8.13% Sensitivity 25.7% Rate Loans, Securities Tangible (200 BPS Non-Interest with Two-Year Portfolio with Common Rate Shock Bearing DDA to Average Four-Year Equity/Tangible Increases NII Total Deposits By 4.0%) Duration Average Assets Duration 29

Successful FDIC-Assisted Acquisition Strategy Significant Earnings Contribution (Pre-tax) Completed 4 Contributed $74 2,016 2017 2018 Q1 FDIC-Assisted Million in Net Transactions Earnings Since Since December $15,018 $8,106 $1,765 Acquisition 2009 Dollars in Thousands Significant Terminated all loss share agreements with the $47 Million of Contribution to Remaining FDIC in December 2015 Future Earnings Contractual with Estimated Cash Flows with Future $24 Million Accretable Yield Carrying Value Early termination charge from Q4 2015 of $9 Million earned back 100% in Q1 2016 Accretable yield estimate as of 3/31/2018 30

Capital Management Tangible Common Equity/Tangible Assets • 2,000,000 Share Common Stock Repurchase Plan • ~ 10% of EFSC Outstanding Shares 8.69% 8.88% 8.76% • No Specified End Date 7.78% 8.14% 8.13% • Disciplined, Patient Approach Based on Market Conditions • Repurchased 64,915 shares at an average price of $47.10 in the first quarter of 2018 2013 2014 2015 2016 2017 Q1 2018 • Sufficient Capital to Support Growth Plans • $0.11 1st quarter 2018 Dividend 31

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 core net interest margin and other core performance measures, in this presentation 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 core performance measures presented in this presentation 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 and related income and expenses, the impact of 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 the gain or loss on sale of other real estate from non-core acquired loans, and expenses directly related to the non-core acquired loans and other assets formerly covered under FDIC loss share agreements. Core performance measures also exclude certain other income and expense items, such as executive separation costs, merger related expenses, facilities charges, deferred tax asset revaluation due to U.S. corporate income tax reform, 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 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 tables below, 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 measure for the periods indicated. Peer group data consists of median of publicly traded banks with total assets from $2-$9 billion with commercial loans greater than 20% and consumer loans less than 10%. 32

Reconciliation of Non-GAAP Financial Measures For the Quarter ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in thousands, except per share data) 2018 2017 2017 2017 2017 CORE PERFORMANCE MEASURES Net interest income $ 46,171 $ 47,404 $ 45,625 $ 45,633 $ 38,642 Less: Incremental accretion income 766 2,503 1,556 2,584 1,075 Core net interest income 45,405 44,901 44,069 43,049 37,567 Total noninterest income 9,542 11,112 8,372 7,934 6,976 Less: Gain (loss) on sale of other real estate from non-core acquired loans — (6) — — — Less: Other income from non-core acquired assets 1,013 — — — — Less: Gain on sale of investment securities 9 — 22 — — Core noninterest income 8,520 11,118 8,350 7,934 6,976 Total core revenue 53,925 56,019 52,419 50,983 44,543 Provision for portfolio loan losses 1,871 3,186 2,422 3,623 1,533 Total noninterest expense 29,143 28,260 27,404 32,651 26,736 Less: Other expenses related to non-core acquired loans 14 114 19 (16) 123 Less: Facilities disposal — — — 389 — Less: Merger related expenses — — 315 4,480 1,667 Core noninterest expense 29,129 28,146 27,070 27,798 24,946 Core income before income tax exp 22,925 24,687 22,927 19,562 18,064 Total income tax expense 3,778 19,820 7,856 5,545 5,106 Less: income tax expense from deferred tax asset revaluation1 — 12,117 — — — Less: Other non-core income tax expense2 438 1,011 465 (784) 190 Core income tax expense 3,340 6,692 7,391 6,329 4,916 Core net income $ 19,585 $ 17,995 $ 15,536 $ 13,233 $ 13,148 Core diluted earnings per share $ 0.84 $ 0.77 $ 0.66 $ 0.56 $ 0.59 Core return on average assets 1.49% 1.37% 1.21% 1.06% 1.17% Core return on average common equity 14.34% 12.84% 11.13% 9.72% 11.29% Core return on average tangible common equity 18.64% 16.71% 14.50% 12.72% 13.75% Core efficiency ratio 54.02% 50.24% 51.64% 54.52% 56.01% NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (FULLY TAX EQUIVALENT) Net interest income $ 46,386 $ 47,824 $ 46,047 $ 46,096 $ 39,147 Less: Incremental accretion income 766 2,503 1,556 2,584 1,075 Core net interest income $ 45,620 $ 45,321 $ 44,491 $ 43,512 $ 38,072 Average earning assets $4,948,875 $4,826,271 $4,712,672 $4,641,198 $4,259,198 Reported net interest margin 3.80% 3.93% 3.88% 3.98% 3.73% Core net interest margin 3.74% 3.73% 3.75% 3.76% 3.63% 1Deferred tax asset revaluation associated with U.S. corporate income tax reform. 2 Other non-core income tax expense calculated at 24.7% of non-core pretax income for 2018. For 2017, the calculation is 38.0% of non-core pretax income plus an estimate of taxes payable related to non-deductible JCB acquisition costs. 33

Reconciliation of Non-GAAP Financial Measures For the Year ended December 31, December 31, December 31, December 31, ($ in thousands, except per share data) 2017 2016 2015 2014 CORE PERFORMANCE MEASURES Net interest income $ 177,304 $ 135,495 $ 120,410 $ 117,368 Less: Incremental accretion income 7,718 11,980 12,792 18,930 Core net interest income 169,586 123,515 107,618 98,438 Total noninterest income 34,394 29,059 20,675 16,631 Less: Gain on sale of other real estate from non-core acquired loans (6) 1,565 107 445 Less: Other income from non-core acquired assets — 621 — — Less: Gain on sale of investment securities 22 86 23 — Less: Change in FDIC loss share receivable — — (5,030) (9,307) Less: Closing fee — — — 945 Core noninterest income 34,378 26,787 25,575 24,548 Total core revenue 203,964 150,302 133,193 122,986 Provision for portfolio loan losses 10,764 5,551 4,872 4,409 Total noninterest expense 115,051 86,110 82,226 87,463 Less: Merger related expenses 6,462 1,386 — — Less: Other expenses related to non-core acquired loans 240 1,094 1,558 2,953 Less: Facilities disposal charge 389 1,040 — 1,004 Less: Executive severance — 332 — — Less: FDIC loss share termination — — 2,436 — Less: FDIC clawback — — 760 1,201 Less: FHLB prepayment penalty — — — 2,936 Less: Other non-core expenses — 41 — — Core noninterest expense 107,960 82,217 77,472 79,369 Core income before income tax expense 85,240 62,534 50,849 39,208 Total income tax expense 38,327 26,002 19,951 13,871 Less: Income tax expense from deferred tax asset revaluation1 12,117 — — — Less: Other non-core income tax expense2 882 4,705 2,893 706 Core income tax expense 25,328 21,297 17,058 13,165 Core net income $ 59,912 $ 41,237 $ 33,791 $ 26,043 Core diluted earnings per share $ 2.58 $ 2.03 $ 1.66 $ 1.29 Core return on average assets 1.2% 1.09% 1% 0.82% Core return on average common equity 11.26% 11.1% 10.08% 8.63% Core return on average tangible common equity 14.46% 12.18% 11.22% 9.77% Core efficiency ratio 52.93% 54.7% 58.17% 64.53% NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (FULLY TAX Net interest income $ 179,114 $ 137,261 $ 122,141 $ 119,002 Less: Incremental accretion income 7,718 11,980 12,792 18,930 Core net interest income $ 171,396 $ 125,281 $ 109,349 $ 100,072 Average earning assets $ 4,611,671 $ 3,570,186 $ 3,163,339 $ 2,921,978 Reported net interest margin 3.88% 3.84% 3.86% 4.07% Core net interest margin 3.72% 3.51% 3.46% 3.42% 1Deferred tax asset revaluation associated with U.S. corporate income tax reform. 2Other non-core income tax expense calculated at 38.0% of non-core pretax income plus an estimate of taxes payable related to non-deductible JCB acquisition costs. 34

1st Quarter 2018 EFSC Investor Presentation Q&A