EX-99.1 2 a2019shareholdermeetingp.htm EXHIBIT MATERIALS BEING PRESENTED IN MEETINGS WITH CERTAIN SHAREHOLDERS
Exhibit 99.1 Annual Shareholder Meeting May 29, 2019

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, and by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 future performance, operations, products and services. The ability to predict results or the actual effect of future plans or strategies is inherently uncertain. You should be aware that actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including, but not limited to: the ability to efficiently integrate acquisitions into our operations (including the recent acquisition of Trinity Capital Corporation (“Trinity”)), retain the customers of these businesses and grow the acquired operations; 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; the 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 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 the Company’s website at www.enterprisebank.com under “Investor Relations.” 2

Scott Goodman President, Enterprise Bank & Trust

Differentiated Business Model Built for Earnings Growth Target Audience Tailored Solutions Expertise Focused and Targeted Array of Services Experienced, Tenured Well-Defined Strategy to Meet Our Clients’ Needs Bankers and Advisors 5

Strategic Combination with Trinity Capital Corporation Closed March 8, 2019 Financial Metrics Total Assets $1,237 million Cost of IB Deposits 19 bps Gross Loans $705 million % Core Deposits 98% Loans / Deposits 63% Total Deposits $1,081 million $209 million; approximately Transaction Value (2) (3) $36 million in cash and $173 million in EFSC stock ⦁ EPS Accretion: 2019E Operating: Estimated Financial ⦁ ~3%; 2020E GAAP: ~8% Impact ⦁ TBVPS Earnback Period: ~3 years ⦁ Price / Tangible Book Value: 1.98x Transaction Pricing ⦁ Price / 2019E EPS: 16.9x; 9.5x including fully-phased after-tax cost savings ⦁ Core Deposit Premium: 9.4% 6

Attractive Growth Markets Phoenix Kansas City New Mexico St. Louis Loans $353MM $730MM $682MM $2.3B Deposits $198MM $785MM $1.1B $3.5B Branches 2 7 6 19 Deposit Market th th th th Share 1, 2 29 /0.22% 17 /1.28% 7 /3.60% 4 /4.45% 1 Source: 12/31/2018 data, S&P Global Market Intelligence. 2 1st/84.25% for Los Alamos, New Mexico MSA and 4th/14% for Santa Fe, New Mexico MSA 7

Focused Loan Growth Strategies Specialized Market Segments Represent 27% of Total Portfolio Loans, Offering Competitive Advantages, Risk Adjusted Pricing and Fee Income Opportunities. Expectations for future growth includes continued focus in these specialized market segments. Total Loans Tax Credit Programs Enterprise Value Life Insurance Aircraft Lending Agricultural Lending Premium Lending $235 million in loans Financing $86 million in loans outstanding $440 million in M&A outstanding $126 million in loans related loans $441 million in loans outstanding outstanding outstanding 8

Diversified Deposit Base Total Deposits $5.5 Billion Cost of Deposits 1.02% • Significant DDA Composition • 29% Deposit Growth (4% excluding Trinity acquisition) • Stable Cost of Deposits • 46% of Total Deposits in low-cost transaction accounts • Improving Core Funding Interest-Bearing DDA Transaction 21% Accounts 25% In Millions Trinity $1,094 15% CD MMA & 39% Savings 9

Client Focus 10 Source: Greenwich Associates

Recognized for Breaking Through A- Investment TOP 5 Greenwich Award Grade* largest commercial lenders 1 of 6 regional banks recognized for providing advice to help middle-market From Kroll in St. Louis and Kansas City companies grow *Enterprise Bank & Trust Business Journals #26 Raymond James Voted Best Bank 2018 S&P Global Market Community Banker’s Cup to Work For Intelligence annual Award Winner by American Banker in 2018 community bank ratings 2018 Healthiest Operational Best Places to Work Companies Excellence Finalist, St. Louis Business Journal to work for Award for global payments Interactive Health from Wells Fargo, Q1 2019 11

Keene Turner Chief Financial & Operating Officer Enterprise Financial Services Corp

Results: 2018 vs 2014 Earnings per Share Return on Average Assets Return on Average Tangible Common Equity1 1.64% $3.83 19.83% 0.86% 10.19% $1.35 2018 2014 2018 2014 2018 2014 1A Non-GAAP Measure, Refer to Appendix for Reconciliation 13

The Virtuous Cycle Shareholders Deployment Superior into Core Returns and Business and Long-Term Thoughtful Growth M&A 14

Capital Deployment – Past Five Years In Millions $314 Tangible Common Equity to Tangible Assets $263 8.88% 8.69% 8.76% 8.14% 8.66% 8.35% $41 $41 Growth M&A Share Repurchase Dividends 15

Growth Merger 2013 through 2018 charges $0.24 In Thousands Earnings per Share Total Noninterest Revenue Expense Marginal Increase Increase Efficiency $85,201 $28,392 33% Note: Q1 2019, A Non-GAAP Measure, Refer to Appendix for Reconciliation. Q4 2018, Q1 2017, Q2 2017, and Q4 2016 include merger related charges. Q4 2017 includes the impact of deferred tax asset charges due to tax reform. Full Year 2018 Earnings per Share Net Income $89.2 Million Earnings Per Share $3.83 Return on Average Assets 1.64% Return on Average 15.46% Common Equity Return on Average Tangible 19.83% Common Equity Efficiency Ratio 51.70% 16 2017 Net Interest Loan Loss Noninterest Merger Noninterest Income Tax 2018 Income Provision Income Expenses Expense Expense

Mergers & Acquisitions Jefferson County Bancshares Trinity Capital Corporation February 2017 March 2019 • Eagle Bank and Trust, St. Louis MO, 18 Branches • Los Alamos National Bank, Northern NM, 6 Branches • $933 million total assets • $1.2 billion total assets • $770 million total deposits • $1.1 billion total deposits • Average $59 million per branch • Average $182 million per branch • 96% Core Deposits2 • 98% Core Deposits2 • Retail accounts represent 69% of total deposits3 • Retail accounts represent 75% of total deposits3 • Loans to Deposits: 90.7% • Loans to Deposits: 65.7% EFSC Loan to Deposit Ratio 2014 2015 2016 2017 2018 Q1 2019 101.67% 101.47% 97.67% 98.57% 94.81% 90.61% Note: All information as of year end 2018 and 2016 for Trinity and Jefferson, respectively. 1For the 13 full-services branch locations only. 2Defined as total deposits minus time deposits over $250,000. 3Defined as deposit accounts with balances less than $250,000 17

Excess Capital Management Common Stock Repurchase Plan Capital Returned Repurchased Available Buyback Dividends 1,051,105 948,895 50% 50% No specified end date ~ $80 million Disciplined, patient approach 18

Total Shareholder Return 3 Year 5 Year Note: Index = S&P Global Market Intelligence U.S. Bank $5B - $10B, as of 3/31/2019 19

First Quarter Financial Scorecard Q1 2019 Compared to Q1 2018 1% Continued Growth in EPS2 Consistent efficiency 13% 5 bps ratio Drive Net Interest Defend Core Net Achieve Further Income Growth in Dollars Interest Margin1 Improvement in Core with Favorable Loan Operating Leverage1 Growth Trends 29% Enhance Deposit Levels to Support Growth EPS: $0.67 ROAA: 1.10% EPS2: $0.91 ROAA2: 1.49% 1A Non-GAAP Measure, Refer to Appendix for Reconciliation 2A Non-GAAP Measure, Refer to Appendix for Reconciliation. Merger-related expenses impacted EPS and ROAA by $0.24 and 0.39%, respectively for Q1 2019. 20

Jim Lally President & CEO, Enterprise Financial Services Corp

Consistency Drives Results EFSC’s market capitalization has grown from $557M on June 30, 2016, to $1.1 B today. $1,100 Market Capitalization In Millions $557 2016 2019 22

Growth in Earnings Means More Investment For Our Communities and Associates Earnings per share 43% Employee Growth $1.02 $15.5M Salary Increase $4.4M Employee 467% Benefits Increase EPS Growth from $0.18 Q4 2013 to Q4 2018 63% Increase in Community Investments Q4 '13 Q4 '18 23

Community Development Investment Through the Enterprise Bank & Trust Foundation, Enterprise is boosting investment 33% in New Mexico communities. Investment will benefit organizations that impact youth, education, health and human services and animal welfare. Program also provides resources and volunteer hours for community outreach, training and educational opportunities in Los Alamos, Santa Fe and Albuquerque. 24

Making Banking Easier For Our Customers Personal Financial Person-to-Person Management (P2P) Send Money Now, in near real-time. All you View personal finances in numerous ways need is a recipient’s name and email or mobile. to better understand your financial health. Mobile Enterprise Wallet Automated Payables Offer an easy, secure, and private way Seamlessly execute invoice-to-payment to pay with your smartphone. processes. 25

Associates – Break Through Commitments “I’ve made progress on my goal of meeting “Choosing network events over office tasks one new person at every event I attend.” has led me to three new serious prospects.” JULIE EGAN, ST. LOUIS MIKE HASENKAMP, PHOENIX "I'm still a work in progress on my goal of “I’ve seen progress with encouraging and focusing more by closing my laptop and empowering associates to self-teach when it putting down my phone." comes to technology.” BRANDI MYERS, KANSAS CITY RYAN MCPHERSON, ST. LOUIS “I’ve been focusing on building my “Blocking time on my calendar to complete network by signing up for events important tasks – not just attending and meeting new people.” meetings – has helped with productivity.” CATHERINE HARMON, PHOENIX KRIS HUFF, KANSAS CITY 26

Strategy Map 2019 Priorities: Deposit Growth Client Experience Sales & Marketing Continuous Develop & grow new Improve client experience Culture Improvement sources of deposits with emphasis on digital Improve commercial bank Create operational ease capabilities performance by attracting and efficiency for & retaining relationships associates and clients J:\Support Center\SFDC\Governance\Strategy Map and Framework\2019\Strategy Map January 2019 v3.docx 27

TOGETHER, There’s No Stopping You.

Appendix

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 net interest margin, efficiency ratios, return on average assets, return on average equity, 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 core net interest margin, core efficiency ratio, return on average assets, return on average equity, and return on average tangible common equity, 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. Peer group data consists of median of publicly traded banks with total assets from $2-$10 billion with commercial loans greater than 20% and consumer loans less than 10%. 31

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) 2019 2018 2018 2018 2018 CORE PERFORMANCE MEASURES Net interest income $ 52,343 $ 50,593 $ 48,093 $ 47,048 $ 46,171 Less: Incremental accretion income 1,157 2,109 535 291 766 Core net interest income 51,186 48,484 47,558 46,757 45,405 Total noninterest income 9,230 10,702 8,410 9,693 9,542 Less: Other income from non-core acquired assets 365 10 7 18 1,013 Less: Gain on sale of investment securities — — — — 9 Less: Other non-core income — 26 — 649 — Core noninterest income 8,865 10,666 8,403 9,026 8,520 Total core revenue 60,051 59,150 55,961 55,783 53,925 Total noninterest expense 39,838 30,747 29,922 29,219 29,143 Less: Other expenses related to non-core acquired loans 103 40 12 (229) 14 Less: Facilities disposal — — — 239 — Less: Merger related expenses 7,270 1,271 — — — Less: Non-recurring excise tax1 — — 682 — — Core noninterest expense 32,465 29,436 29,228 29,209 29,129 Core efficiency ratio 54.06% 49.77% 52.23% 52.36% 54.02% NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (TAX EQUIVALENT) Net interest income $ 52,595 $ 50,786 $ 48,299 $ 47,254 $ 46,386 Less: Incremental accretion income 1,157 2,109 535 291 766 Core net interest income $ 51,438 $ 48,677 $ 47,764 $ 46,963 $ 45,620 Average earning assets $ 5,510,489 $ 5,118,319 $ 5,072,573 $ 5,023,607 $ 4,948,875 Reported net interest margin 3.87% 3.94% 3.78% 3.77% 3.80% Core net interest margin 3.79% 3.77% 3.74% 3.75% 3.74% 1 Income tax for the quarter ended September 30, 2018, includes a $2.7 million income tax planning benefit, associated with the excise tax expense, recognized upon finalization of the Company’s 2017 tax returns. 32

Reconciliation of Non-GAAP Financial Measures For the Year ended December 31, December 31, December 31, December 31, ($ in thousands, except per share data) 2018 2017 2016 2015 CORE PERFORMANCE MEASURES Net interest income $ 191,905 $ 177,304 $ 135,495 $ 120,410 Less: Incremental accretion income 3,701 7,718 11,980 12,792 Core net interest income 188,204 169,586 123,515 107,618 Total noninterest income 38,347 34,394 29,059 20,675 Less: Gain on sale of other real estate from non-core acquired loans 1,048 (6) 1,565 107 Less: Other income from non-core acquired assets — — 621 — Less: Gain on sale of investment securities 9 22 86 23 Less: Change in FDIC loss share receivable — — — (5,030) Less: Other non-core income 675 — — — Core noninterest income 36,615 34,378 26,787 25,575 Total core revenue 224,819 203,964 150,302 133,193 Total noninterest expense 119,031 115,051 86,110 82,226 Less: Merger related expenses 1,271 6,462 1,386 — Less: Other expenses related to non-core acquired loans (163) 240 1,094 1,558 Less: Facilities disposal charge 239 389 1,040 — Less: Executive severance — — 332 — Less: FDIC loss share termination — — — 2,436 Less: FDIC clawback — — — 760 Less: Non-recurring excise tax 682 — — — Less: Other non-core expenses — — 41 — Core noninterest expense 117,002 107,960 82,217 77,472 Core efficiency ratio 52.04% 52.93% 54.7% 58.17% NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (TAX EQUIVALENT) Net interest income $ 192,725 $ 179,114 $ 137,261 $ 122,141 Less: Incremental accretion income 3,701 7,718 11,980 12,792 Core net interest income $ 189,024 $ 171,396 $ 125,281 $ 109,349 Average earning assets $ 5,041,395 $ 4,611,671 $ 3,570,186 $ 3,163,339 Reported net interest margin 3.82% 3.88% 3.84% 3.86% Core net interest margin 3.75% 3.72% 3.51% 3.46% 33

Reconciliation of Non-GAAP Financial Measures Tangible Common Equity Ratio March 31, December 31, December 31, December 31, December 31, December 31, (in thousands) 2019 2018 2017 2016 2015 2014 Total shareholders' equity $ 797,835 $ 603,804 $ 548,573 $ 387,098 $ 350,829 $ 316,241 Less: Goodwill 207,632 117,345 117,345 30,334 30,334 30,334 Less: Intangible assets 31,048 8,553 11,056 2,151 3,075 4,164 Tangible common equity $ 559,155 $ 477,906 $ 420,172 $ 354,613 $ 317,420 $ 281,743 Total assets $ 6,932,757 $ 5,645,662 $ 5,289,225 $ 4,081,328 $ 3,608,483 $ 3,277,003 Less: Goodwill 207,632 117,345 117,345 30,334 30,334 30,334 Less: Intangible assets 31,048 8,553 11,056 2,151 3,075 4,164 Tangible assets $ 6,694,077 $ 5,519,764 $ 5,160,824 $ 4,048,843 $ 3,575,074 $ 3,242,505 Tangible common equity to tangible assets 8.35% 8.66% 8.14% 8.76% 8.88% 8.69% Average Shareholders’ Equity and Average Tangible Common Equity For the Quarter ended For the Year ended December 31, December 31, December 31, December 31, December 31, (in thousands) March 31, 2019 2018 2017 2016 2015 2014 Average shareholder’s equity $ 662,454 $ 576,960 $ 532,306 $ 371,587 $ 335,095 $ 301,756 Less: Average goodwill 141,422 117,345 106,850 30,334 30,334 30,334 Less: Average intangible assets 14,472 9,763 10,998 2,591 3,596 4,766 Average tangible common equity $ 506,560 $ 449,852 $ 414,458 $ 338,662 $ 301,165 $ 266,656 34

Reconciliation of Non-GAAP Financial Measures Impact of Merger-Related and Tax Items For the Quarter ended For the Year ended March 31, December December December December (in thousands, except per share data) 2019 31, 2018 31, 2017 31, 2016 31, 2015 IMPACT OF MERGER-RELATED AND TAX ITEMS Net income - GAAP $ 16,156 $ 89,217 $ 48,190 $ 48,837 $ 38,450 Merger related expense 7,270 1,271 6,462 1,386 — Related tax effect (1,535) (314) (2,456) (527) — Deferred tax asset revaluation charge due to U.S. corporate income tax reform — — 12,117 — — Subsidiary dividend timing election, net — (2,036) — — — Adjusted net income - Non-GAAP $ 21,891 $ 88,138 $ 64,313 $ 49,696 $ 38,450 Average assets $ 5,956,086 $ 5,436,963 $ 4,980,229 $ 3,796,478 $ 3,381,831 Return on average assets - GAAP net income 1.10% 1.64% 0.97% 1.29% 1.14% Return on average assets - Adjusted net income 1.49 1.62 1.29 1.31 1.14 Average shareholder’s equity $ 662,454 $ 576,960 $ 532,306 $ 371,587 $ 335,095 Return on average equity - GAAP net income 9.89% 15.46% 9.05% 13.14% 11.47% Return on average equity - Adjusted net income 13.40 15.28 12.08 13.37 11.47 Average tangible common equity $ 506,560 $ 449,852 $ 414,458 $ 338,662 $ 301,165 Return on average tangible common equity - GAAP net income 12.93% 19.83% 11.63% 14.42% 12.77% Return on average tangible common equity - Adjusted net income 17.53 19.59 15.52 14.67 12.77 Average diluted common shares outstanding 24,083 23,289 23,249 20,290 20,317 Earnings per share - GAAP net income $ 0.67 $ 3.83 $ 2.07 $ 2.41 $ 1.89 Earnings per share - Adjusted net income 0.91 3.78 2.77 2.45 1.89 35