EX-99.1 2 ex991financialstatementsan.htm EARNINGS RELEASE
EXHIBIT 99.1
ENTERPRISE FINANCIAL REPORTS THIRD QUARTER 2024 RESULTS
Third Quarter Results
•Net income of $50.6 million, or $1.32 per diluted common share, compared to $1.19 in the linked quarter and $1.17 in the prior year quarter
•Net interest margin of 4.17%, quarterly decrease of 2 basis points
•Net interest income of $143.5 million, quarterly increase of $2.9 million
•Total loans of $11.1 billion, quarterly increase of $79.9 million
•Total deposits of $12.5 billion, quarterly increase of $182.9 million
•Return on Average Assets (“ROAA”) of 1.36%, compared to 1.25% and 1.26% in the linked and prior year quarters, respectively
•Return on Average Tangible Common Equity (“ROATCE”)1 of 14.55%, compared to 13.77% and 14.49% in the linked and prior year quarters, respectively
•Tangible common equity to tangible assets 1 of 9.50%, an increase of 32 basis points and 99 basis points from the linked and prior year quarters, respectively
•Tangible book value per share 1 of $37.26, annualized quarterly increase of 25%
•Repurchased 195,114 shares and increased quarterly dividend $0.01 to $0.28 per common share for the fourth quarter 2024
St. Louis, Mo. October 21, 2024 – Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), said today upon the release of EFSC’s third quarter earnings, “We are proud of our third quarter results, with a stable net interest margin, expansion in net interest income and an 11% increase in diluted earnings per share over the linked quarter. Our consistent return profile increased tangible book value per share 25% on an annualized basis from the linked quarter, and 20% over the prior year’s third quarter. With the strength of our balance sheet and capital position as a foundation, I believe we are well positioned to continue executing on the opportunities within our markets.”
Highlights
•Earnings - Net income in the third quarter 2024 was $50.6 million, an increase of $5.1 million and $5.9 million compared to the linked and prior year quarters, respectively. Earnings per diluted common share for the third quarter 2024 was $1.32, compared to $1.19 and $1.17 for the linked and prior year quarters, respectively. Adjusted diluted earnings per common share 1 was $1.29 for the third quarter 2024, compared to $1.21 and $1.17 for the linked and prior year quarters, respectively.
1 ROATCE, tangible common equity to tangible assets, tangible book value per share, adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

•Pre-provision net revenue (“PPNR”)1 - PPNR of $65.1 million in the third quarter 2024 increased $1.8 million from the linked quarter and was relatively stable with the prior year quarter. The increase from the linked quarter was primarily due to higher noninterest income from sales of other real estate owned, and higher net interest income that benefited from an increase in average earning assets. The increase in operating revenue was partially offset by an increase in noninterest expense, primarily variable deposit services costs and employee compensation and benefits.
•Net interest income and net interest margin (“NIM”) - Net interest income of $143.5 million for the third quarter 2024 increased $2.9 million and $1.8 million from the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income for the third quarter 2024 increased primarily due to higher interest-earning asset balances and an additional day in the quarter. NIM was 4.17% for the third quarter 2024, compared to 4.19% and 4.33% for the linked and prior year quarters, respectively. The total cost of deposits of 2.18% for the third quarter 2024 increased 2 basis points and 34 basis points from the linked and prior year quarters, respectively.
•Noninterest income - Noninterest income of $21.4 million for the third quarter 2024 increased $5.9 million and $9.3 million from the linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily due to an increase in tax credit income, a net gain on the sale of other real estate owned and an increase in income on community development investments.
•Noninterest expense - Noninterest expense of $98.0 million for the third quarter 2024 increased $4.0 million and $9.4 million from the linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily driven by higher employee compensation and variable deposit servicing costs. The Company continues to have success in recruiting new relationship managers and in deposit generation from existing relationships, both of which have contributed to an increase in average deposit balances. The increase from the prior year quarter was also affected by expenses related to the core system conversion.
•Loans - Loans totaled $11.1 billion at September 30, 2024, an increase of $79.9 million from the linked quarter and an increase of $463.1 million from the prior year quarter. Average loans totaled $11.0 billion for both the current and linked quarter and $10.5 billion in the prior year quarter.
•Asset quality - The allowance for credit losses to total loans was 1.26% at September 30, 2024, compared to 1.27% at June 30, 2024 and 1.34% at September 30, 2023. The ratio of nonperforming assets to total assets was 0.22% at September 30, 2024, compared to 0.33% and 0.40% at June 30, 2024 and September 30, 2023, respectively. The provision for credit losses recorded in the third quarter 2024 was $4.1 million, compared to $4.8 million and $8.0 million for the linked and prior year quarters, respectively.
•Deposits - Deposits totaled $12.5 billion at September 30, 2024, an increase of $182.9 million from the linked quarter. Excluding brokered certificates of deposits, deposits increased $196.9 million. Average deposits were $12.5 billion, $12.3 billion and $11.9 billion for the current, linked and prior year quarters, respectively. At September 30, 2024, noninterest-bearing deposit accounts totaled $3.9 billion, or 31.6% of total deposits, and the loan to deposit ratio was 88.9%.
•Liquidity - The total available on- and off-balance-sheet liquidity was approximately $5.8 billion at September 30, 2024. On-balance-sheet liquidity consisted of cash of $426.4 million and $1.4 billion in unpledged investment securities at September 30, 2024. Off-balance-sheet liquidity consisted of $1.2 billion available through the Federal Home Loan Bank, $2.6 billion available through the Federal Reserve and $140.0 million through correspondent bank lines. The Company also has an unused $25.0 million revolving line of credit and maintains a shelf registration allowing for the issuance of various forms of equity and debt securities.
2

•Capital - Total shareholders’ equity was $1.8 billion and the tangible common equity to tangible assets ratio 2 was 9.50% at September 30, 2024, compared to 9.18% at June 30, 2024. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.5% and a total risk-based capital ratio of 13.6% at September 30, 2024. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.9% and 14.8%, respectively, at September 30, 2024.
The Company’s board of directors approved a quarterly dividend of $0.28 per common share, payable on December 31, 2024 to shareholders of record as of December 16, 2024. The board of directors also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) September 15, 2024 to (but excluding) December 15, 2024. The dividend will be payable on December 15, 2024 and will be paid on December 16, 2024 to holders of record of Series A Preferred Stock as of November 29, 2024.
2 Tangible common equity to tangible assets ratio is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.
3

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

| Quarter ended
| September 30, 2024 |  | June 30, 2024 |  | September 30, 2023
($ in thousands) | Average Balance |  | Interest Income/ Expense |  | Average Yield/ Rate |  | Average Balance |  | Interest Income/ Expense |  | Average Yield/ Rate |  | Average Balance |  | Interest Income/ Expense |  | Average Yield/ Rate
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans 1, 2 | $ | 10,971,575 |  |  | $ | 191,638 |  |  | 6.95 | % |  | $ | 10,962,488 |  |  | $ | 189,346 |  |  | 6.95 | % |  | $ | 10,521,966 |  |  | $ | 180,382 |  |  | 6.80 | %
Securities 2 | 2,503,124 |  |  | 21,404 |  |  | 3.40 |  |  | 2,396,519 |  |  | 19,956 |  |  | 3.35 |  |  | 2,302,850 |  |  | 18,076 |  |  | 3.11 |
Interest-earning deposits | 402,932 |  |  | 5,348 |  |  | 5.28 |  |  | 325,452 |  |  | 4,389 |  |  | 5.42 |  |  | 335,771 |  |  | 4,509 |  |  | 5.33 |
Total interest-earning assets | 13,877,631 |  |  | 218,390 |  |  | 6.26 |  |  | 13,684,459 |  |  | 213,691 |  |  | 6.28 |  |  | 13,160,587 |  |  | 202,967 |  |  | 6.12 |
Noninterest-earning assets | 971,824 |  |  |  |  |  |  | 961,922 |  |  |  |  |  |  | 908,273 |  |  |  |  |
Total assets | $ | 14,849,455 |  |  |  |  |  |  | $ | 14,646,381 |  |  |  |  |  |  | $ | 14,068,860 |  |  |  |  |
Liabilities and Shareholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand accounts | $ | 3,018,309 |  |  | $ | 20,002 |  |  | 2.64 | % |  | $ | 2,950,827 |  |  | $ | 18,801 |  |  | 2.56 | % |  | $ | 2,672,084 |  |  | $ | 13,701 |  |  | 2.03 | %
Money market accounts | 3,551,492 |  |  | 33,493 |  |  | 3.75 |  |  | 3,434,712 |  |  | 31,926 |  |  | 3.74 |  |  | 3,079,221 |  |  | 26,427 |  |  | 3.40 |
Savings accounts | 561,466 |  |  | 345 |  |  | 0.24 |  |  | 573,115 |  |  | 335 |  |  | 0.24 |  |  | 646,187 |  |  | 250 |  |  | 0.15 |
Certificates of deposit | 1,368,339 |  |  | 14,928 |  |  | 4.34 |  |  | 1,412,263 |  |  | 15,312 |  |  | 4.36 |  |  | 1,519,119 |  |  | 14,976 |  |  | 3.91 |
Total interest-bearing deposits | 8,499,606 |  |  | 68,768 |  |  | 3.22 |  |  | 8,370,917 |  |  | 66,374 |  |  | 3.19 |  |  | 7,916,611 |  |  | 55,354 |  |  | 2.77 |
Subordinated debentures and notes | 156,329 |  |  | 2,695 |  |  | 6.86 |  |  | 156,188 |  |  | 2,684 |  |  | 6.91 |  |  | 155,769 |  |  | 2,466 |  |  | 6.28 |
FHLB advances | 4,565 |  |  | 59 |  |  | 5.14 |  |  | 40,308 |  |  | 561 |  |  | 5.60 |  |  | 10,326 |  |  | 141 |  |  | 5.42 |
Securities sold under agreements to repurchase | 140,255 |  |  | 1,217 |  |  | 3.45 |  |  | 158,969 |  |  | 1,401 |  |  | 3.54 |  |  | 146,893 |  |  | 969 |  |  | 2.61 |
Other borrowings | 36,226 |  |  | 96 |  |  | 1.05 |  |  | 36,203 |  |  | 95 |  |  | 1.06 |  |  | 50,571 |  |  | 337 |  |  | 2.66 |
Total interest-bearing liabilities | 8,836,981 |  |  | 72,835 |  |  | 3.28 |  |  | 8,762,585 |  |  | 71,115 |  |  | 3.26 |  |  | 8,280,170 |  |  | 59,267 |  |  | 2.84 |
Noninterest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposits | 4,046,480 |  |  |  |  |  |  | 3,973,336 |  |  |  |  |  |  | 4,005,923 |  |  |  |  |
Other liabilities | 161,625 |  |  |  |  |  |  | 162,220 |  |  |  |  |  |  | 134,162 |  |  |  |  |
Total liabilities | 13,045,086 |  |  |  |  |  |  | 12,898,141 |  |  |  |  |  |  | 12,420,255 |  |  |  |  |
Shareholders' equity | 1,804,369 |  |  |  |  |  |  | 1,748,240 |  |  |  |  |  |  | 1,648,605 |  |  |  |  |
Total liabilities and shareholders' equity | $ | 14,849,455 |  |  |  |  |  |  | $ | 14,646,381 |  |  |  |  |  |  | $ | 14,068,860 |  |  |  |  |
Total net interest income |  |  | $ | 145,555 |  |  |  |  |  |  | $ | 142,576 |  |  |  |  |  |  | $ | 143,700 |  |  |
Net interest margin |  |  |  |  | 4.17 | % |  |  |  |  |  | 4.19 | % |  |  |  |  |  | 4.33 | %
1 Average balances include nonaccrual loans. Interest income includes net loan fees of $2.6 million, $2.2 million, and $3.3 million for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $2.1 million for each of the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

4

Net interest income of $143.5 million for the third quarter 2024 increased $2.9 million and $1.8 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $145.6 million, $142.6 million and $143.7 million for the current, linked and prior year quarters, respectively. The increase from the linked and prior quarters reflects the benefit of higher yields combined with organic growth. In late September 2024 the Federal Reserve reduced the federal funds target rate by 50 basis points. In response, since the Company maintains an asset-sensitive balance sheet, deposit pricing has been adjusted to partially mitigate the impact on income from the repricing of variable rate loans.
Interest income increased $4.7 million during the third quarter 2024 due to increases in all interest earning categories, including loans, securities and interest earning cash accounts. Interest income increased primarily due to an increase in average balances compared to the linked quarter. Continued success in deposit generation has increased liquidity, which has been primarily deployed into the securities portfolio.
The average interest rate of new loan originations in the third quarter 2024 was 7.84%, a decrease of 23 basis points from the linked quarter. Investment purchases in the third quarter 2024 had a weighted average, tax equivalent yield of 4.97%.
Interest expense increased $1.7 million in the third quarter 2024 primarily due to an increase in deposit interest expense, partially offset by a decline in interest expense on borrowings. The average cost of interest-bearing deposits was 3.22%, an increase of 3 basis points compared to the linked quarter. The total cost of deposits, including noninterest-bearing demand accounts, was 2.18% during the third quarter 2024, compared to 2.16% in the linked quarter.
NIM, on a tax equivalent basis, was 4.17% in the third quarter 2024, a decrease of 2 basis points from the linked quarter and a decrease of 16 basis points from the prior year quarter. For the month of September 2024, the loan portfolio yield was 6.90% and the cost of total deposits was 2.18%.
Investments

| At
| September 30, 2024 |  | June 30, 2024 |  | September 30, 2023
($ in thousands) | Carrying Value |  | Net Unrealized Loss |  | Carrying Value |  | Net Unrealized Loss |  | Carrying Value |  | Net Unrealized Loss
Available-for-sale (AFS) | $ | 1,786,793 |  |  | $ | (122,158) |  |  | $ | 1,615,930 |  |  | $ | (172,734) |  |  | $ | 1,487,104 |  |  | $ | (235,013) |
Held-to-maturity (HTM) | 851,647 |  |  | (46,351) |  |  | 772,648 |  |  | (69,442) |  |  | 730,655 |  |  | (108,780) |
Total | $ | 2,638,440 |  |  | $ | (168,509) |  |  | $ | 2,388,578 |  |  | $ | (242,176) |  |  | $ | 2,217,759 |  |  | $ | (343,793) |

Investment securities totaled $2.6 billion at September 30, 2024, an increase of $249.9 million from the linked quarter. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities 3 was 9.26% at September 30, 2024, compared to 8.82% at June 30, 2024.
3 The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.
5

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

| At
($ in thousands) | September 30, 2024 |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023 |  | September 30, 2023
C&I | $ | 2,145,286 |  |  | $ | 2,107,097 |  |  | $ | 2,263,817 |  |  | $ | 2,186,203 |  |  | $ | 2,020,303 |
CRE investor owned | 2,346,575 |  |  | 2,308,926 |  |  | 2,280,990 |  |  | 2,291,660 |  |  | 2,260,220 |
CRE owner occupied | 1,322,714 |  |  | 1,313,742 |  |  | 1,279,929 |  |  | 1,262,264 |  |  | 1,255,885 |
SBA loans* | 1,272,679 |  |  | 1,269,145 |  |  | 1,274,780 |  |  | 1,281,632 |  |  | 1,309,497 |
Sponsor finance* | 819,079 |  |  | 865,883 |  |  | 865,180 |  |  | 872,264 |  |  | 888,000 |
Life insurance premium financing* | 1,030,273 |  |  | 996,154 |  |  | 1,003,597 |  |  | 956,162 |  |  | 928,486 |
Tax credits* | 724,441 |  |  | 738,249 |  |  | 718,383 |  |  | 734,594 |  |  | 683,580 |
Residential real estate | 346,460 |  |  | 339,889 |  |  | 354,615 |  |  | 359,957 |  |  | 364,618 |
Construction and land development | 796,586 |  |  | 791,780 |  |  | 726,742 |  |  | 670,567 |  |  | 639,555 |
Other | 275,799 |  |  | 269,142 |  |  | 260,459 |  |  | 268,815 |  |  | 266,676 |
Total loans | $ | 11,079,892 |  |  | $ | 11,000,007 |  |  | $ | 11,028,492 |  |  | $ | 10,884,118 |  |  | $ | 10,616,820 |
Quarterly loan yield | 6.95 | % |  | 6.95 | % |  | 6.87 | % |  | 6.87 | % |  | 6.80 | %
Variable interest rate loans to total loans | 61 | % |  | 61 | % |  | 61 | % |  | 61 | % |  | 61 | %
*Specialty loan category

Loans totaled $11.1 billion at September 30, 2024, an increase of $79.9 million compared to the linked quarter. During the current quarter, C&I loans and CRE loans increased $38.2 million and $46.6 million, respectively. Average line utilization was approximately 44% for the quarter ended September 30, 2024, compared to 46% and 41% for the linked and prior year quarters, respectively.
Asset Quality
The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:

| At
($ in thousands) | September 30, 2024 |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023 |  | September 30, 2023
Nonperforming loans* | $ | 28,376 |  |  | $ | 39,384 |  |  | $ | 35,642 |  |  | $ | 43,728 |  |  | $ | 48,932 |
Other | 4,516 |  |  | 8,746 |  |  | 8,466 |  |  | 5,736 |  |  | 6,933 |
Nonperforming assets* | $ | 32,892 |  |  | $ | 48,130 |  |  | $ | 44,108 |  |  | $ | 49,464 |  |  | $ | 55,865 |
Nonperforming loans to total loans | 0.26 | % |  | 0.36 | % |  | 0.32 | % |  | 0.40 | % |  | 0.46 | %
Nonperforming assets to total assets | 0.22 | % |  | 0.33 | % |  | 0.30 | % |  | 0.34 | % |  | 0.40 | %
Allowance for credit losses | $ | 139,778 |  |  | $ | 139,464 |  |  | $ | 135,498 |  |  | $ | 134,771 |  |  | $ | 142,133 |
Allowance for credit losses to total loans | 1.26 | % |  | 1.27 | % |  | 1.23 | % |  | 1.24 | % |  | 1.34 | %
Quarterly net charge-offs | $ | 3,850 |  |  | $ | 605 |  |  | $ | 5,864 |  |  | $ | 28,479 |  |  | $ | 6,856 |
*Guaranteed balances excluded | $ | 11,899 |  |  | $ | 12,933 |  |  | $ | 9,630 |  |  | $ | 10,682 |  |  | $ | 5,974 |

Nonperforming assets decreased $15.2 million and $23.0 million from the linked and prior year quarters, respectively. The decrease in nonperforming assets in the current quarter was primarily related to the sale of other real estate owned, the positive resolution on several loans, principal repayments and charge-offs in the quarter. Annualized net charge-offs totaled 14 basis points of average loans in the third quarter 2024, compared to 2 basis points in the linked quarter and 26 basis point in the prior year quarter.
6

The provision for credit losses totaled $4.1 million in the third quarter 2024, compared to $4.8 million and $8.0 million in the linked and prior year quarters, respectively. The provision for credit losses in the third quarter 2024 was primarily related to charge-offs and updates to qualitative factors used in the allowance calculation.
Deposits
The following table presents deposits broken out by type for the most recent five quarters:

| At
($ in thousands) | September 30, 2024 |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023 |  | September 30, 2023
Noninterest-bearing demand accounts | $ | 3,934,245 |  |  | $ | 3,928,308 |  |  | $ | 3,805,334 |  |  | $ | 3,958,743 |  |  | $ | 3,852,486 |
Interest-bearing demand accounts | 3,048,981 |  |  | 2,951,899 |  |  | 2,956,282 |  |  | 2,950,259 |  |  | 2,749,598 |
Money market and savings accounts | 4,121,543 |  |  | 4,039,626 |  |  | 4,006,702 |  |  | 3,994,455 |  |  | 3,837,145 |
Brokered certificates of deposit | 480,934 |  |  | 494,870 |  |  | 659,005 |  |  | 482,759 |  |  | 695,551 |
Other certificates of deposit | 879,619 |  |  | 867,680 |  |  | 826,378 |  |  | 790,155 |  |  | 775,127 |
Total deposit portfolio | $ | 12,465,322 |  |  | $ | 12,282,383 |  |  | $ | 12,253,701 |  |  | $ | 12,176,371 |  |  | $ | 11,909,907 |
Noninterest-bearing deposits to total deposits | 31.6 | % |  | 32.0 | % |  | 31.1 | % |  | 32.5 | % |  | 32.3 | %
Quarterly cost of deposits | 2.18 | % |  | 2.16 | % |  | 2.13 | % |  | 2.03 | % |  | 1.84 | %

Total deposits at September 30, 2024 were $12.5 billion, an increase of $182.9 million and $555.4 million from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, total deposits increased $196.9 million and $770.0 million, from the linked and prior year quarters, respectively. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.2 billion at both September 30, 2024 and June 30, 2024.
Total estimated insured deposits,4 which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled $8.8 billion, or 70% of total deposits, at September 30, 2024 compared to $8.7 billion, or 71% of total deposits, at June 30, 2024.
Noninterest Income
The following table presents a comparative summary of the major components of noninterest income for the periods indicated:

| Linked quarter comparison |  | Prior year comparison
| Quarter ended |  | Quarter ended
($ in thousands) | September 30, 2024 |  | June 30, 2024 |  | Increase (decrease) |  | September 30, 2023 |  | Increase (decrease)
Deposit service charges | $ | 4,649 |  |  | $ | 4,542 |  |  | $ | 107 |  |  | 2 | % |  | $ | 4,187 |  |  | $ | 462 |  |  | 11 | %
Wealth management revenue | 2,599 |  |  | 2,590 |  |  | 9 |  |  | — | % |  | 2,614 |  |  | (15) |  |  | (1) | %
Card services revenue | 2,573 |  |  | 2,497 |  |  | 76 |  |  | 3 | % |  | 2,560 |  |  | 13 |  |  | 1 | %
Tax credit income (loss) | 3,252 |  |  | 1,874 |  |  | 1,378 |  |  | 74 | % |  | (2,673) |  |  | 5,925 |  |  | 222 | %
Other income | 8,347 |  |  | 3,991 |  |  | 4,356 |  |  | 109 | % |  | 5,397 |  |  | 2,950 |  |  | 55 | %
Total noninterest income | $ | 21,420 |  |  | $ | 15,494 |  |  | $ | 5,926 |  |  | 38 | % |  | $ | 12,085 |  |  | $ | 9,335 |  |  | 77 | %

Total noninterest income was $21.4 million for the third quarter 2024, an increase of $5.9 million and $9.3 million from the linked and prior year quarter, respectively. The increase from the linked and prior year quarters was primarily due to an increase in tax credit income from a positive change in credits carried at fair value, and a net gain on the sale of other real estate that is included in Other income. Tax credit income varies based on transaction volumes and fair value changes on credits carried at fair value.
4 Estimated insured deposits is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.
7

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

| Linked quarter comparison |  | Prior year comparison
| Quarter ended |  | Quarter ended
($ in thousands) | September 30, 2024 |  | June 30, 2024 |  | Increase (decrease) |  | September 30, 2023 |  | Increase (decrease)
Gain on sales of other real estate owned | $ | 3,159 |  |  | $ | — |  |  | $ | 3,159 |  |  | 100 | % |  | $ | — |  |  | $ | 3,159 |  |  | 100 | %
BOLI | 1,123 |  |  | 855 |  |  | 268 |  |  | 31 | % |  | 822 |  |  | 301 |  |  | 37 | %
Community development investments | 1,177 |  |  | 381 |  |  | 796 |  |  | 209 | % |  | 338 |  |  | 839 |  |  | 248 | %
Private equity fund distributions | 614 |  |  | 411 |  |  | 203 |  |  | 49 | % |  | 181 |  |  | 433 |  |  | 239 | %
Servicing fees | 539 |  |  | 594 |  |  | (55) |  |  | (9) | % |  | 701 |  |  | (162) |  |  | (23) | %
Swap fees | 17 |  |  | 217 |  |  | (200) |  |  | (92) | % |  | 54 |  |  | (37) |  |  | (69) | %
Gain on SBA loan sales | — |  |  | — |  |  | — |  |  | — | % |  | 1,514 |  |  | (1,514) |  |  | (100) | %
Miscellaneous income | 1,718 |  |  | 1,533 |  |  | 185 |  |  | 12 | % |  | 1,787 |  |  | (69) |  |  | (4) | %
Total other income | $ | 8,347 |  |  | $ | 3,991 |  |  | $ | 4,356 |  |  | 109 | % |  | $ | 5,397 |  |  | $ | 2,950 |  |  | 55 | %

The increase in other income from the linked and prior year quarters was primarily driven by a $3.2 million net gain on the sale of other real estate in the third quarter 2024 and higher community development income. Community development income and private equity fund distributions are not consistent sources of income and fluctuate based on distributions from the underlying funds. The increase from the prior year quarter was partially offset by a decline in the gain on SBA loan sales that were transacted in the prior year.
Noninterest Expense
The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:

| Linked quarter comparison |  | Prior year comparison
| Quarter ended |  | Quarter ended
($ in thousands) | September 30, 2024 |  | June 30, 2024 |  | Increase (decrease) |  | September 30, 2023 |  | Increase (decrease)
Employee compensation and benefits | $ | 45,359 |  |  | $ | 44,524 |  |  | $ | 835 |  |  |  | 2 | % |  | $ | 40,771 |  |  | $ | 4,588 |  |  | 11 | %
Deposit costs | 23,781 |  |  | 21,706 |  |  | 2,075 |  |  |  | 10 | % |  | 20,987 |  |  | 2,794 |  |  | 13 | %
Occupancy | 4,372 |  |  | 4,197 |  |  | 175 |  |  |  | 4 | % |  | 4,198 |  |  | 174 |  |  | 4 | %
Core conversion expense | 1,375 |  |  | 1,250 |  |  | 125 |  |  |  | 10 | % |  | — |  |  | 1,375 |  |  | 100 | %
Other expense | 23,120 |  |  | 22,340 |  |  | 780 |  |  |  | 3 | % |  | 22,688 |  |  | 432 |  |  | 2 | %
Total noninterest expense | $ | 98,007 |  |  | $ | 94,017 |  |  | $ | 3,990 |  |  |  | 4 | % |  | $ | 88,644 |  |  | $ | 9,363 |  |  | 11 | %

Employee compensation and benefits increased $0.8 million from the linked quarter primarily due to an increase in the number of work days in the quarter and the success in recruiting new relationship bankers. Deposit costs relate to certain specialized deposit businesses that receive an earnings credit allowance for deposit related expenses that are impacted by interest rates and average balances. Deposit costs increased $2.1 million from the linked quarter primarily due to an increase of $151.6 million in average deposit vertical balances from the linked quarter. Expenses related to the core system conversion for the current and linked quarters were $1.4 million and $1.3 million, respectively, due to the continued progress on the project, which is expected to be completed during the fourth quarter 2024.
8

The increase in noninterest expense of $9.4 million from the prior year quarter was primarily due to an increase in the associate base, merit increases throughout 2023 and 2024, an increase in variable deposit costs due to higher earnings credit rates and average balances, and additional expenses incurred related to the core system conversion.
For the third quarter 2024, the core efficiency ratio 5 was 58.4%, compared to 58.1% for the linked quarter and 56.2% for the prior year quarter.
Income Taxes
The effective tax rate was 19.4%, compared to 20.5% and 21.7% in the linked and prior year quarters, respectively. The decrease in the effective tax rate from the linked and prior year quarters was driven by tax credit opportunities the Company has deployed as part of its tax planning strategy.
Capital
The following table presents total equity and various capital ratios for the most recent five quarters:

| At
($ in thousands) | September 30, 2024* |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023 |  | September 30, 2023
Shareholders’ equity | $ | 1,832,011 |  |  | $ | 1,755,273 |  |  | $ | 1,731,725 |  |  | $ | 1,716,068 |  |  | $ | 1,611,880 |
Total risk-based capital to risk-weighted assets | 14.8 | % |  | 14.6 | % |  | 14.3 | % |  | 14.2 | % |  | 14.1 | %
Tier 1 capital to risk weighted assets | 13.2 | % |  | 13.0 | % |  | 12.8 | % |  | 12.7 | % |  | 12.6 | %
Common equity tier 1 capital to risk-weighted assets | 11.9 | % |  | 11.7 | % |  | 11.4 | % |  | 11.3 | % |  | 11.2 | %
Leverage ratio | 11.2 | % |  | 11.1 | % |  | 11.0 | % |  | 11.0 | % |  | 10.9 | %
Tangible common equity to tangible assets | 9.50 | % |  | 9.18 | % |  | 9.01 | % |  | 8.96 | % |  | 8.51 | %

*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.
Total equity was $1.8 billion at September 30, 2024, an increase of $76.7 million from the linked quarter. Tangible common book value per share was $37.26 at September 30, 2024, compared to $35.02 and $31.06 at June 30, 2024 and September 30, 2023, respectively.
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 additional financial measures, such as tangible common equity, PPNR, ROATCE, core efficiency ratio, the tangible common equity to tangible assets ratio, tangible book value per common share, estimated insured deposits and adjusted diluted earnings per share, 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, ROATCE, core efficiency ratio, the tangible common equity to tangible assets ratio, tangible book value per common share, estimated insured deposits and adjusted diluted earnings per share, 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
5 Core efficiency ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.
9

Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as the FDIC special assessment, core conversion expenses, merger-related expenses, facilities charges, and the gain or loss on the sale of other real estate owned and investment securities, that 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 to tangible assets ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.
The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.
Conference Call and Webcast Information
The Company will host a conference call and webcast at 10:00 a.m. Central Time on Tuesday, October 22, 2024. During the call, management will review the third quarter 2024 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 1-800-715-9871. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC3Q2024EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.
About Enterprise Financial Services Corp
Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $15.0 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 branch offices in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. 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
Readers should note that, in addition to the historical information contained herein, this press release 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. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, shareholder value creation and the impact of acquisitions.
10

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma”, “pipeline” 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 anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, as well as 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 and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), U.S. fiscal debt, budget and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase out of LIBOR, natural disasters, terrorist activities, war and geopolitical matters (including the war in Israel and potential for a broader regional conflict and the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.
For any forward-looking statements made in this press release or in any documents, EFSC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, EFSC 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, Senior Executive Vice President and CFO (314) 512-7233
Media: Steve Richardson, Senior Vice President, Corporate Communications (314) 995-5695
11

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited)

| Quarter ended |  | Nine months ended
(in thousands, except per share data) | Sep 30, 2024 |  | Jun 30, 2024 |  | Mar 31, 2024 |  | Dec 31, 2023 |  | Sep 30, 2023 |  | Sep 30, 2024 |  | Sep 30, 2023
EARNINGS SUMMARY |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 143,469 |  |  | $ | 140,529 |  |  | $ | 137,728 |  |  | $ | 140,732 |  |  | $ | 141,639 |  |  | $ | 421,726 |  |  | $ | 421,860 |
Provision for credit losses | 4,099 |  |  | 4,819 |  |  | 5,756 |  |  | 18,053 |  |  | 8,030 |  |  | 14,674 |  |  | 18,552 |
Noninterest income | 21,420 |  |  | 15,494 |  |  | 12,158 |  |  | 25,452 |  |  | 12,085 |  |  | 49,072 |  |  | 43,273 |
Noninterest expense | 98,007 |  |  | 94,017 |  |  | 93,501 |  |  | 92,603 |  |  | 88,644 |  |  | 285,525 |  |  | 255,583 |
Income before income tax expense | 62,783 |  |  | 57,187 |  |  | 50,629 |  |  | 55,528 |  |  | 57,050 |  |  | 170,599 |  |  | 190,998 |
Income tax expense | 12,198 |  |  | 11,741 |  |  | 10,228 |  |  | 10,999 |  |  | 12,385 |  |  | 34,167 |  |  | 41,468 |
Net income | 50,585 |  |  | 45,446 |  |  | 40,401 |  |  | 44,529 |  |  | 44,665 |  |  | 136,432 |  |  | 149,530 |
Preferred stock dividends | 938 |  |  | 937 |  |  | 938 |  |  | 937 |  |  | 938 |  |  | 2,813 |  |  | 2,813 |
Net income available to common shareholders | $ | 49,647 |  |  | $ | 44,509 |  |  | $ | 39,463 |  |  | $ | 43,592 |  |  | $ | 43,727 |  |  | $ | 133,619 |  |  | $ | 146,717 |
Diluted earnings per common share | $ | 1.32 |  |  | $ | 1.19 |  |  | $ | 1.05 |  |  | $ | 1.16 |  |  | $ | 1.17 |  |  | $ | 3.56 |  |  | $ | 3.91 |
Adjusted diluted earnings per common share 1 | $ | 1.29 |  |  | $ | 1.21 |  |  | $ | 1.07 |  |  | $ | 1.20 |  |  | $ | 1.17 |  |  | $ | 3.57 |  |  | $ | 3.90 |
Return on average assets | 1.36 | % |  | 1.25 | % |  | 1.12 | % |  | 1.23 | % |  | 1.26 | % |  | 1.24 | % |  | 1.47 | %
Adjusted return on average assets 1 | 1.32 | % |  | 1.27 | % |  | 1.14 | % |  | 1.28 | % |  | 1.26 | % |  | 1.24 | % |  | 1.46 | %
Return on average common equity 1 | 11.40 | % |  | 10.68 | % |  | 9.52 | % |  | 10.94 | % |  | 11.00 | % |  | 10.55 | % |  | 12.73 | %
Adjusted return on average common equity 1 | 11.09 | % |  | 10.90 | % |  | 9.70 | % |  | 11.35 | % |  | 11.00 | % |  | 10.58 | % |  | 12.69 | %
ROATCE 1 | 14.55 | % |  | 13.77 | % |  | 12.31 | % |  | 14.38 | % |  | 14.49 | % |  | 13.56 | % |  | 16.90 | %
Adjusted ROATCE 1 | 14.16 | % |  | 14.06 | % |  | 12.53 | % |  | 14.92 | % |  | 14.49 | % |  | 13.60 | % |  | 16.85 | %
Net interest margin (tax equivalent) | 4.17 | % |  | 4.19 | % |  | 4.13 | % |  | 4.23 | % |  | 4.33 | % |  | 4.17 | % |  | 4.50 | %
Efficiency ratio | 59.44 | % |  | 60.26 | % |  | 62.38 | % |  | 55.72 | % |  | 57.66 | % |  | 60.65 | % |  | 54.95 | %
Core efficiency ratio 1 | 58.42 | % |  | 58.09 | % |  | 60.21 | % |  | 53.06 | % |  | 56.18 | % |  | 58.89 | % |  | 53.55 | %
Assets | $ | 14,954,125 |  |  | $ | 14,615,666 |  |  | $ | 14,613,338 |  |  | $ | 14,518,590 |  |  | $ | 14,025,042 |  |  |  |  |
Average assets | $ | 14,849,455 |  |  | $ | 14,646,381 |  |  | $ | 14,556,119 |  |  | $ | 14,332,804 |  |  | $ | 14,068,860 |  |  | $ | 14,684,589 |  |  | $ | 13,627,448 |
Period end common shares outstanding | 37,184 |  |  | 37,344 |  |  | 37,515 |  |  | 37,416 |  |  | 37,385 |  |  |  |  |
Dividends per common share | $ | 0.27 |  |  | $ | 0.26 |  |  | $ | 0.25 |  |  | $ | 0.25 |  |  | $ | 0.25 |  |  | $ | 0.78 |  |  | $ | 0.75 |
Tangible book value per common share 1 | $ | 37.26 |  |  | $ | 35.02 |  |  | $ | 34.21 |  |  | $ | 33.85 |  |  | $ | 31.06 |  |  |  |  |
Tangible common equity to tangible assets 1 | 9.50 | % |  | 9.18 | % |  | 9.01 | % |  | 8.96 | % |  | 8.51 | % |  |  |  |
Total risk-based capital to risk-weighted assets 2 | 14.8 | % |  | 14.6 | % |  | 14.3 | % |  | 14.2 | % |  | 14.1 | % |  |  |  |
1 Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.
2 Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

12

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

| Quarter ended |  | Nine months ended
(in thousands, except per share data) | Sep 30, 2024 |  | Jun 30, 2024 |  | Mar 31, 2024 |  | Dec 31, 2023 |  | Sep 30, 2023 |  | Sep 30, 2024 |  | Sep 30, 2023
INCOME STATEMENTS |  |  |  |  |  |  |  |  |  |  |  |  |
NET INTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income | $ | 216,304 |  |  | $ | 211,644 |  |  | $ | 207,723 |  |  | $ | 207,083 |  |  | $ | 200,906 |  |  | $ | 635,671 |  |  | $ | 557,836 |
Interest expense | 72,835 |  |  | 71,115 |  |  | 69,995 |  |  | 66,351 |  |  | 59,267 |  |  | 213,945 |  |  | 135,976 |
Net interest income | 143,469 |  |  | 140,529 |  |  | 137,728 |  |  | 140,732 |  |  | 141,639 |  |  | 421,726 |  |  | 421,860 |
Provision for credit losses | 4,099 |  |  | 4,819 |  |  | 5,756 |  |  | 18,053 |  |  | 8,030 |  |  | 14,674 |  |  | 18,552 |
Net interest income after provision for credit losses | 139,370 |  |  | 135,710 |  |  | 131,972 |  |  | 122,679 |  |  | 133,609 |  |  | 407,052 |  |  | 403,308 |
NONINTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |
Deposit service charges | 4,649 |  |  | 4,542 |  |  | 4,423 |  |  | 4,334 |  |  | 4,187 |  |  | 13,614 |  |  | 12,225 |
Wealth management revenue | 2,599 |  |  | 2,590 |  |  | 2,544 |  |  | 2,428 |  |  | 2,614 |  |  | 7,733 |  |  | 7,602 |
Card services revenue | 2,573 |  |  | 2,497 |  |  | 2,412 |  |  | 2,666 |  |  | 2,560 |  |  | 7,482 |  |  | 7,362 |
Tax credit income (loss) | 3,252 |  |  | 1,874 |  |  | (2,190) |  |  | 9,688 |  |  | (2,673) |  |  | 2,936 |  |  | (492) |
Other income | 8,347 |  |  | 3,991 |  |  | 4,969 |  |  | 6,336 |  |  | 5,397 |  |  | 17,307 |  |  | 16,576 |
Total noninterest income | 21,420 |  |  | 15,494 |  |  | 12,158 |  |  | 25,452 |  |  | 12,085 |  |  | 49,072 |  |  | 43,273 |
NONINTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |  |
Employee compensation and benefits | 45,359 |  |  | 44,524 |  |  | 45,262 |  |  | 39,651 |  |  | 40,771 |  |  | 135,145 |  |  | 124,915 |
Deposit costs | 23,781 |  |  | 21,706 |  |  | 20,277 |  |  | 21,606 |  |  | 20,987 |  |  | 65,764 |  |  | 50,688 |
Occupancy | 4,372 |  |  | 4,197 |  |  | 4,326 |  |  | 4,313 |  |  | 4,198 |  |  | 12,895 |  |  | 12,213 |
FDIC special assessment | — |  |  | — |  |  | 625 |  |  | 2,412 |  |  | — |  |  | 625 |  |  | — |
Core conversion expense | 1,375 |  |  | 1,250 |  |  | 350 |  |  | — |  |  | — |  |  | 2,975 |  |  | — |
Other expense | 23,120 |  |  | 22,340 |  |  | 22,661 |  |  | 24,621 |  |  | 22,688 |  |  | 68,121 |  |  | 67,767 |
Total noninterest expense | 98,007 |  |  | 94,017 |  |  | 93,501 |  |  | 92,603 |  |  | 88,644 |  |  | 285,525 |  |  | 255,583 |
Income before income tax expense | 62,783 |  |  | 57,187 |  |  | 50,629 |  |  | 55,528 |  |  | 57,050 |  |  | 170,599 |  |  | 190,998 |
Income tax expense | 12,198 |  |  | 11,741 |  |  | 10,228 |  |  | 10,999 |  |  | 12,385 |  |  | 34,167 |  |  | 41,468 |
Net income | $ | 50,585 |  |  | $ | 45,446 |  |  | $ | 40,401 |  |  | $ | 44,529 |  |  | $ | 44,665 |  |  | $ | 136,432 |  |  | $ | 149,530 |
Preferred stock dividends | 938 |  |  | 937 |  |  | 938 |  |  | 937 |  |  | 938 |  |  | 2,813 |  |  | 2,813 |
Net income available to common shareholders | $ | 49,647 |  |  | $ | 44,509 |  |  | $ | 39,463 |  |  | $ | 43,592 |  |  | $ | 43,727 |  |  | $ | 133,619 |  |  | $ | 146,717 |
Basic earnings per common share | $ | 1.33 |  |  | $ | 1.19 |  |  | $ | 1.05 |  |  | $ | 1.16 |  |  | $ | 1.17 |  |  | $ | 3.57 |  |  | $ | 3.93 |
Diluted earnings per common share | $ | 1.32 |  |  | $ | 1.19 |  |  | $ | 1.05 |  |  | $ | 1.16 |  |  | $ | 1.17 |  |  | $ | 3.56 |  |  | $ | 3.91 |

13

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

| At
($ in thousands) | Sep 30, 2024 |  | Jun 30, 2024 |  | Mar 31, 2024 |  | Dec 31, 2023 |  | Sep 30, 2023
BALANCE SHEET |  |  |  |  |  |  |  |  |
ASSETS |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 210,984 |  |  | $ | 176,698 |  |  | $ | 157,697 |  |  | $ | 193,275 |  |  | $ | 190,806 |
Interest-earning deposits | 218,919 |  |  | 219,342 |  |  | 215,951 |  |  | 243,610 |  |  | 184,245 |
Debt and equity investments | 2,714,194 |  |  | 2,460,549 |  |  | 2,443,977 |  |  | 2,434,902 |  |  | 2,279,578 |
Loans held for sale | 304 |  |  | 606 |  |  | 610 |  |  | 359 |  |  | 212 |
Loans | 11,079,892 |  |  | 11,000,007 |  |  | 11,028,492 |  |  | 10,884,118 |  |  | 10,616,820 |
Allowance for credit losses | (139,778) |  |  | (139,464) |  |  | (135,498) |  |  | (134,771) |  |  | (142,133) |
Total loans, net | 10,940,114 |  |  | 10,860,543 |  |  | 10,892,994 |  |  | 10,749,347 |  |  | 10,474,687 |
Fixed assets, net | 44,368 |  |  | 44,831 |  |  | 44,382 |  |  | 42,681 |  |  | 41,268 |
Goodwill | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |
Intangible assets, net | 9,400 |  |  | 10,327 |  |  | 11,271 |  |  | 12,318 |  |  | 13,425 |
Other assets | 450,678 |  |  | 477,606 |  |  | 481,292 |  |  | 476,934 |  |  | 475,657 |
Total assets | $ | 14,954,125 |  |  | $ | 14,615,666 |  |  | $ | 14,613,338 |  |  | $ | 14,518,590 |  |  | $ | 14,025,042 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits | $ | 3,934,245 |  |  | $ | 3,928,308 |  |  | $ | 3,805,334 |  |  | $ | 3,958,743 |  |  | $ | 3,852,486 |
Interest-bearing deposits | 8,531,077 |  |  | 8,354,075 |  |  | 8,448,367 |  |  | 8,217,628 |  |  | 8,057,421 |
Total deposits | 12,465,322 |  |  | 12,282,383 |  |  | 12,253,701 |  |  | 12,176,371 |  |  | 11,909,907 |
Subordinated debentures and notes | 156,407 |  |  | 156,265 |  |  | 156,124 |  |  | 155,984 |  |  | 155,844 |
FHLB advances | 150,000 |  |  | 78,000 |  |  | 125,000 |  |  | — |  |  | — |
Other borrowings | 170,815 |  |  | 178,269 |  |  | 195,246 |  |  | 297,829 |  |  | 182,372 |
Other liabilities | 179,570 |  |  | 165,476 |  |  | 151,542 |  |  | 172,338 |  |  | 165,039 |
Total liabilities | 13,122,114 |  |  | 12,860,393 |  |  | 12,881,613 |  |  | 12,802,522 |  |  | 12,413,162 |
Shareholders’ equity: |  |  |  |  |  |  |  |  |
Preferred stock | 71,988 |  |  | 71,988 |  |  | 71,988 |  |  | 71,988 |  |  | 71,988 |
Common stock | 372 |  |  | 373 |  |  | 375 |  |  | 374 |  |  | 374 |
Additional paid-in capital | 992,642 |  |  | 994,116 |  |  | 995,969 |  |  | 995,208 |  |  | 992,044 |
Retained earnings | 845,844 |  |  | 810,935 |  |  | 778,784 |  |  | 749,513 |  |  | 715,303 |
Accumulated other comprehensive loss | (78,835) |  |  | (122,139) |  |  | (115,391) |  |  | (101,015) |  |  | (167,829) |
Total shareholders’ equity | 1,832,011 |  |  | 1,755,273 |  |  | 1,731,725 |  |  | 1,716,068 |  |  | 1,611,880 |
Total liabilities and shareholders’ equity | $ | 14,954,125 |  |  | $ | 14,615,666 |  |  | $ | 14,613,338 |  |  | $ | 14,518,590 |  |  | $ | 14,025,042 |

14

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

| Nine months ended
| September 30, 2024 |  | September 30, 2023
($ in thousands) | Average Balance |  | Interest Income/ Expense |  | Average Yield/ Rate |  | Average Balance |  | Interest Income/ Expense |  | Average Yield/ Rate
AVERAGE BALANCE SHEET |  |  |  |  |  |  |  |  |  |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |
Interest-earning assets: |  |  |  |  |  |  |  |  |  |  |
Loans 1, 2 | $ | 10,954,063 |  |  | $ | 567,687 |  |  | 6.92% |  | $ | 10,203,291 |  |  | $ | 503,458 |  |  | 6.60%
Securities 2 | 2,433,659 |  |  | 60,851 |  |  | 3.34 |  | 2,296,485 |  |  | 52,743 |  |  | 3.07
Interest-earning deposits | 332,409 |  |  | 13,306 |  |  | 5.35 |  | 206,110 |  |  | 7,799 |  |  | 5.06
Total interest-earning assets | 13,720,131 |  |  | 641,844 |  |  | 6.25 |  | 12,705,886 |  |  | 564,000 |  |  | 5.93
Noninterest-earning assets | 964,458 |  |  |  |  |  |  | 921,562 |  |  |  |  |
Total assets | $ | 14,684,589 |  |  |  |  |  |  | $ | 13,627,448 |  |  |  |  |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Interest-bearing demand accounts | $ | 2,964,667 |  |  | $ | 57,415 |  |  | 2.59% |  | $ | 2,462,988 |  |  | $ | 29,728 |  |  | 1.61%
Money market accounts | 3,462,993 |  |  | 96,777 |  |  | 3.73 |  | 2,942,970 |  |  | 62,397 |  |  | 2.83
Savings accounts | 573,853 |  |  | 983 |  |  | 0.23 |  | 688,157 |  |  | 707 |  |  | 0.14
Certificates of deposit | 1,374,176 |  |  | 44,441 |  |  | 4.32 |  | 1,139,489 |  |  | 28,555 |  |  | 3.35
Total interest-bearing deposits | 8,375,689 |  |  | 199,616 |  |  | 3.18 |  | 7,233,604 |  |  | 121,387 |  |  | 2.24
Subordinated debentures and notes | 156,188 |  |  | 7,863 |  |  | 6.72 |  | 155,633 |  |  | 7,306 |  |  | 6.28
FHLB advances | 39,427 |  |  | 1,649 |  |  | 5.59 |  | 73,020 |  |  | 2,752 |  |  | 5.04
Securities sold under agreements to repurchase | 167,939 |  |  | 4,422 |  |  | 3.52 |  | 174,783 |  |  | 2,422 |  |  | 1.85
Other borrowings | 38,381 |  |  | 395 |  |  | 1.37 |  | 79,396 |  |  | 2,109 |  |  | 3.55
Total interest-bearing liabilities | 8,777,624 |  |  | 213,945 |  |  | 3.26 |  | 7,716,436 |  |  | 135,976 |  |  | 2.36
Noninterest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Demand deposits | 3,982,015 |  |  |  |  |  |  | 4,178,038 |  |  |  |  |
Other liabilities | 161,033 |  |  |  |  |  |  | 119,883 |  |  |  |  |
Total liabilities | 12,920,672 |  |  |  |  |  |  | 12,014,357 |  |  |  |  |
Shareholders' equity | 1,763,917 |  |  |  |  |  |  | 1,613,091 |  |  |  |  |
Total liabilities and shareholders' equity | $ | 14,684,589 |  |  |  |  |  |  | $ | 13,627,448 |  |  |  |  |
Total net interest income |  |  | $ | 427,899 |  |  |  |  |  |  | $ | 428,024 |  |  |
Net interest margin |  |  |  |  | 4.17% |  |  |  |  |  | 4.50%
1 Average balances include nonaccrual loans. Interest income includes net loan fees of $7.2 million and $10.7 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.
2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $6.2 million for both the nine months ended September 30, 2024 and September 30, 2023, respectively.

15

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

| At or for the quarter ended
($ in thousands) | Sep 30, 2024 |  | Jun 30, 2024 |  | Mar 31, 2024 |  | Dec 31, 2023 |  | Sep 30, 2023
LOAN PORTFOLIO |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 4,628,488 |  |  | $ | 4,619,448 |  |  | $ | 4,766,310 |  |  | $ | 4,672,559 |  |  | $ | 4,448,535 |
Commercial real estate | 4,915,176 |  |  | 4,856,751 |  |  | 4,804,803 |  |  | 4,803,571 |  |  | 4,794,355 |
Construction real estate | 896,325 |  |  | 893,672 |  |  | 820,416 |  |  | 760,425 |  |  | 723,796 |
Residential real estate | 355,279 |  |  | 351,934 |  |  | 367,218 |  |  | 372,188 |  |  | 376,120 |
Other | 284,624 |  |  | 278,202 |  |  | 269,745 |  |  | 275,375 |  |  | 274,014 |
Total loans | $ | 11,079,892 |  |  | $ | 11,000,007 |  |  | $ | 11,028,492 |  |  | $ | 10,884,118 |  |  | $ | 10,616,820 |
DEPOSIT PORTFOLIO |  |  |  |  |  |  |  |  |
Noninterest-bearing demand accounts | $ | 3,934,245 |  |  | $ | 3,928,308 |  |  | $ | 3,805,334 |  |  | $ | 3,958,743 |  |  | $ | 3,852,486 |
Interest-bearing demand accounts | 3,048,981 |  |  | 2,951,899 |  |  | 2,956,282 |  |  | 2,950,259 |  |  | 2,749,598 |
Money market and savings accounts | 4,121,543 |  |  | 4,039,626 |  |  | 4,006,702 |  |  | 3,994,455 |  |  | 3,837,145 |
Brokered certificates of deposit | 480,934 |  |  | 494,870 |  |  | 659,005 |  |  | 482,759 |  |  | 695,551 |
Other certificates of deposit | 879,619 |  |  | 867,680 |  |  | 826,378 |  |  | 790,155 |  |  | 775,127 |
Total deposits | $ | 12,465,322 |  |  | $ | 12,282,383 |  |  | $ | 12,253,701 |  |  | $ | 12,176,371 |  |  | $ | 11,909,907 |
AVERAGE BALANCES |  |  |  |  |  |  |  |  |
Loans | $ | 10,971,575 |  |  | $ | 10,962,488 |  |  | $ | 10,927,932 |  |  | $ | 10,685,961 |  |  | $ | 10,521,966 |
Securities | 2,503,124 |  |  | 2,396,519 |  |  | 2,400,571 |  |  | 2,276,915 |  |  | 2,302,850 |
Interest-earning assets | 13,877,631 |  |  | 13,684,459 |  |  | 13,596,571 |  |  | 13,383,638 |  |  | 13,160,587 |
Assets | 14,849,455 |  |  | 14,646,381 |  |  | 14,556,119 |  |  | 14,332,804 |  |  | 14,068,860 |
Deposits | 12,546,086 |  |  | 12,344,253 |  |  | 12,180,703 |  |  | 12,163,346 |  |  | 11,922,534 |
Shareholders’ equity | 1,804,369 |  |  | 1,748,240 |  |  | 1,738,698 |  |  | 1,652,882 |  |  | 1,648,605 |
Tangible common equity 1 | 1,357,362 |  |  | 1,300,305 |  |  | 1,289,776 |  |  | 1,202,872 |  |  | 1,197,486 |
YIELDS (tax equivalent) |  |  |  |  |  |  |  |  |
Loans | 6.95 | % |  | 6.95 | % |  | 6.87 | % |  | 6.87 | % |  | 6.80 | %
Securities | 3.40 |  |  | 3.35 |  |  | 3.27 |  |  | 3.20 |  |  | 3.11 |
Interest-earning assets | 6.26 |  |  | 6.28 |  |  | 6.20 |  |  | 6.20 |  |  | 6.12 |
Interest-bearing deposits | 3.22 |  |  | 3.19 |  |  | 3.14 |  |  | 3.03 |  |  | 2.77 |
Deposits | 2.18 |  |  | 2.16 |  |  | 2.13 |  |  | 2.03 |  |  | 1.84 |
Subordinated debentures and notes | 6.86 |  |  | 6.91 |  |  | 6.40 |  |  | 6.30 |  |  | 6.28 |
FHLB advances and other borrowed funds | 3.01 |  |  | 3.52 |  |  | 3.80 |  |  | 3.06 |  |  | 2.76 |
Interest-bearing liabilities | 3.28 |  |  | 3.26 |  |  | 3.22 |  |  | 3.09 |  |  | 2.84 |
Net interest margin | 4.17 |  |  | 4.19 |  |  | 4.13 |  |  | 4.23 |  |  | 4.33 |

1 Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.
16

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

| Quarter ended
(in thousands, except per share data) | Sep 30, 2024 |  | Jun 30, 2024 |  | Mar 31, 2024 |  | Dec 31, 2023 |  | Sep 30, 2023
ASSET QUALITY |  |  |  |  |  |  |  |  |
Net charge-offs | $ | 3,850 |  |  | $ | 605 |  |  | $ | 5,864 |  |  | $ | 28,479 |  |  | $ | 6,856 |
Nonperforming loans | 28,376 |  |  | 39,384 |  |  | 35,642 |  |  | 43,728 |  |  | 48,932 |
Classified assets | 179,883 |  |  | 169,822 |  |  | 185,150 |  |  | 185,389 |  |  | 184,393 |
Nonperforming loans to total loans | 0.26 | % |  | 0.36 | % |  | 0.32 | % |  | 0.40 | % |  | 0.46 | %
Nonperforming assets to total assets | 0.22 | % |  | 0.33 | % |  | 0.30 | % |  | 0.34 | % |  | 0.40 | %
Allowance for credit losses to total loans | 1.26 | % |  | 1.27 | % |  | 1.23 | % |  | 1.24 | % |  | 1.34 | %
Allowance for credit losses to total loans, excluding guaranteed loans | 1.38 | % |  | 1.38 | % |  | 1.34 | % |  | 1.35 | % |  | 1.47 | %
Allowance for credit losses to nonperforming loans | 492.6 | % |  | 354.1 | % |  | 380.2 | % |  | 308.2 | % |  | 290.5 | %
Net charge-offs to average loans -annualized | 0.14 | % |  | 0.02 | % |  | 0.22 | % |  | 1.06 | % |  | 0.26 | %
WEALTH MANAGEMENT |  |  |  |  |  |  |  |  |
Trust assets under management | $ | 2,499,807 |  |  | $ | 2,367,409 |  |  | $ | 2,352,902 |  |  | $ | 2,235,073 |  |  | $ | 2,129,408 |
SHARE DATA |  |  |  |  |  |  |  |  |
Book value per common share | $ | 47.33 |  |  | $ | 45.08 |  |  | $ | 44.24 |  |  | $ | 43.94 |  |  | $ | 41.19 |
Tangible book value per common share 1 | $ | 37.26 |  |  | $ | 35.02 |  |  | $ | 34.21 |  |  | $ | 33.85 |  |  | $ | 31.06 |
Market value per share | $ | 51.26 |  |  | $ | 40.91 |  |  | $ | 40.56 |  |  | $ | 44.65 |  |  | $ | 37.50 |
Period end common shares outstanding | 37,184 |  |  | 37,344 |  |  | 37,515 |  |  | 37,416 |  |  | 37,385 |
Average basic common shares | 37,337 |  |  | 37,485 |  |  | 37,490 |  |  | 37,421 |  |  | 37,405 |
Average diluted common shares | 37,483 |  |  | 37,540 |  |  | 37,597 |  |  | 37,554 |  |  | 37,520 |
CAPITAL |  |  |  |  |  |  |  |  |
Total risk-based capital to risk-weighted assets 2 | 14.8 | % |  | 14.6 | % |  | 14.3 | % |  | 14.2 | % |  | 14.1 | %
Tier 1 capital to risk-weighted assets 2 | 13.2 | % |  | 13.0 | % |  | 12.8 | % |  | 12.7 | % |  | 12.6 | %
Common equity tier 1 capital to risk-weighted assets 2 | 11.9 | % |  | 11.7 | % |  | 11.4 | % |  | 11.3 | % |  | 11.2 | %
Tangible common equity to tangible assets 1 | 9.50 | % |  | 9.18 | % |  | 9.01 | % |  | 8.96 | % |  | 8.51 | %
1 Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.
2 Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

17

ENTERPRISE FINANCIAL SERVICES CORP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

| Quarter ended |  | Nine months ended
($ in thousands) | Sep 30, 2024 |  | Jun 30, 2024 |  | Mar 31, 2024 |  | Dec 31, 2023 |  | Sep 30, 2023 |  | Sep 30, 2024 |  | Sep 30, 2023
CORE EFFICIENCY RATIO |  |  |  |
Net interest income (GAAP) | $ | 143,469 |  |  | $ | 140,529 |  |  | $ | 137,728 |  |  | $ | 140,732 |  |  | $ | 141,639 |  |  | $ | 421,726 |  |  | $ | 421,860 |
Tax-equivalent adjustment | 2,086 |  |  | 2,047 |  |  | 2,040 |  |  | 1,915 |  |  | 2,061 |  |  | 6,173 |  |  | 6,164 |
Noninterest income (GAAP) | 21,420 |  |  | 15,494 |  |  | 12,158 |  |  | 25,452 |  |  | 12,085 |  |  | 49,072 |  |  | 43,273 |
Less gain on sale of investment securities | — |  |  | — |  |  | — |  |  | 220 |  |  | — |  |  | — |  |  | 381 |
Less gain (loss) on sale of other real estate owned | 3,159 |  |  | — |  |  | (2) |  |  | — |  |  | — |  |  | 3,157 |  |  | 187 |
Core revenue (non-GAAP) | 163,816 |  |  | 158,070 |  |  | 151,928 |  |  | 167,879 |  |  | 155,785 |  |  | 473,814 |  |  | 470,729 |
Noninterest expense (GAAP) | 98,007 |  |  | 94,017 |  |  | 93,501 |  |  | 92,603 |  |  | 88,644 |  |  | 285,525 |  |  | 255,583 |
Less FDIC special assessment | — |  |  | — |  |  | 625 |  |  | 2,412 |  |  | — |  |  | 625 |  |  | — |
Less core conversion expense | 1,375 |  |  | 1,250 |  |  | 350 |  |  | — |  |  | — |  |  | 2,975 |  |  | — |
Less amortization on intangibles | 927 |  |  | 944 |  |  | 1,047 |  |  | 1,108 |  |  | 1,118 |  |  | 2,918 |  |  | 3,493 |
Core noninterest expense (non-GAAP) | $ | 95,705 |  |  | $ | 91,823 |  |  | $ | 91,479 |  |  | $ | 89,083 |  |  | $ | 87,526 |  |  | $ | 279,007 |  |  | $ | 252,090 |
Core efficiency ratio (non-GAAP) | 58.42 | % |  | 58.09 | % |  | 60.21 | % |  | 53.06 | % |  | 56.18 | % |  | 58.89 | % |  | 53.55 | %

| Quarter ended
(in thousands, except per share data) | Sep 30, 2024 |  | Jun 30, 2024 |  | Mar 31, 2024 |  | Dec 31, 2023 |  | Sep 30, 2023
TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Shareholders’ equity (GAAP) | $ | 1,832,011 |  |  | $ | 1,755,273 |  |  | $ | 1,731,725 |  |  | $ | 1,716,068 |  |  | $ | 1,611,880 |
Less preferred stock | 71,988 |  |  | 71,988 |  |  | 71,988 |  |  | 71,988 |  |  | 71,988 |
Less goodwill | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |
Less intangible assets | 9,400 |  |  | 10,327 |  |  | 11,271 |  |  | 12,318 |  |  | 13,425 |
Tangible common equity (non-GAAP) | $ | 1,385,459 |  |  | $ | 1,307,794 |  |  | $ | 1,283,302 |  |  | $ | 1,266,598 |  |  | $ | 1,161,303 |
Less net unrealized losses on HTM securities, after tax | 34,856 |  |  | 52,220 |  |  | 47,822 |  |  | 41,038 |  |  | 81,367 |
Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP) | $ | 1,350,603 |  |  | $ | 1,255,574 |  |  | $ | 1,235,480 |  |  | $ | 1,225,560 |  |  | $ | 1,079,936 |
Common shares outstanding | 37,184 |  |  | 37,344 |  |  | 37,515 |  |  | 37,416 |  |  | 37,385 |
Tangible book value per share (non-GAAP) | $ | 37.26 |  |  | $ | 35.02 |  |  | $ | 34.21 |  |  | $ | 33.85 |  |  | $ | 31.06 |
Total assets (GAAP) | $ | 14,954,125 |  |  | $ | 14,615,666 |  |  | $ | 14,613,338 |  |  | $ | 14,518,590 |  |  | $ | 14,025,042 |
Less goodwill | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |
Less intangible assets | 9,400 |  |  | 10,327 |  |  | 11,271 |  |  | 12,318 |  |  | 13,425 |
Tangible assets (non-GAAP) | $ | 14,579,561 |  |  | $ | 14,240,175 |  |  | $ | 14,236,903 |  |  | $ | 14,141,108 |  |  | $ | 13,646,453 |
Tangible common equity to tangible assets (non-GAAP) | 9.50 | % |  | 9.18 | % |  | 9.01 | % |  | 8.96 | % |  | 8.51 | %
Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP) | 9.26 | % |  | 8.82 | % |  | 8.68 | % |  | 8.67 | % |  | 7.91 | %

18

| Quarter Ended |  | Nine months ended
($ in thousands) | Sep 30, 2024 |  | Jun 30, 2024 |  | Mar 31, 2024 |  | Dec 31, 2023 |  | Sep 30, 2023 |  | Sep 30, 2024 |  | Sep 30, 2023
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED EARNINGS PER SHARE
Average shareholder’s equity (GAAP) | $ | 1,804,369 |  |  | $ | 1,748,240 |  |  | $ | 1,738,698 |  |  | $ | 1,652,882 |  |  | $ | 1,648,605 |  |  | $ | 1,763,917 |  |  | $ | 1,613,091 |
Less average preferred stock | 71,988 |  |  | 71,988 |  |  | 71,988 |  |  | 71,988 |  |  | 71,988 |  |  | 71,988 |  |  | 71,988 |
Less average goodwill | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |  |  | 365,164 |
Less average intangible assets | 9,855 |  |  | 10,783 |  |  | 11,770 |  |  | 12,858 |  |  | 13,967 |  |  | 10,799 |  |  | 15,094 |
Average tangible common equity (non-GAAP) | $ | 1,357,362 |  |  | $ | 1,300,305 |  |  | $ | 1,289,776 |  |  | $ | 1,202,872 |  |  | $ | 1,197,486 |  |  | $ | 1,315,966 |  |  | $ | 1,160,845 |
Net income (GAAP) | $ | 50,585 |  |  | $ | 45,446 |  |  | $ | 40,401 |  |  | $ | 44,529 |  |  | $ | 44,665 |  |  | $ | 136,432 |  |  | $ | 149,530 |
FDIC special assessment (after tax) | — |  |  | — |  |  | 470 |  |  | 1,814 |  |  | — |  |  | 470 |  |  | — |
Core conversion expense (after tax) | 1,034 |  |  | 940 |  |  | 263 |  |  | — |  |  | — |  |  | 2,237 |  |  | — |
Less gain on sale of investment securities (after tax) | — |  |  | — |  |  | — |  |  | 165 |  |  | — |  |  | — |  |  | 287 |
Less gain (loss) on sales of other real estate owned (after tax) | 2,375 |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | 2,374 |  |  | 141 |
Net income adjusted (non-GAAP) | $ | 49,244 |  |  | $ | 46,386 |  |  | $ | 41,135 |  |  | $ | 46,178 |  |  | $ | 44,665 |  |  | $ | 136,765 |  |  | $ | 149,102 |
Less preferred stock dividends | 938 |  |  | 937 |  |  | 938 |  |  | 937 |  |  | 938 |  |  | 2,813 |  |  | 2,813 |
Net income available to common shareholders adjusted (non-GAAP) | $ | 48,306 |  |  | $ | 45,449 |  |  | $ | 40,197 |  |  | $ | 45,241 |  |  | $ | 43,727 |  |  | $ | 133,952 |  |  | $ | 146,289 |
Return on average common equity (non-GAAP) | 11.40 | % |  | 10.68 | % |  | 9.52 | % |  | 10.94 | % |  | 11.00 | % |  | 10.55 | % |  | 12.73 | %
Adjusted return on average common equity (non-GAAP) | 11.09 | % |  | 10.90 | % |  | 9.70 | % |  | 11.35 | % |  | 11.00 | % |  | 10.58 | % |  | 12.69 | %
ROATCE (non-GAAP) | 14.55 | % |  | 13.77 | % |  | 12.31 | % |  | 14.38 | % |  | 14.49 | % |  | 13.56 | % |  | 16.90 | %
Adjusted ROATCE (non-GAAP) | 14.16 | % |  | 14.06 | % |  | 12.53 | % |  | 14.92 | % |  | 14.49 | % |  | 13.60 | % |  | 16.85 | %
Average assets | $ | 14,849,455 |  |  | $ | 14,646,381 |  |  | $ | 14,556,119 |  |  | $ | 14,332,804 |  |  | $ | 14,068,860 |  |  | $ | 14,684,589 |  |  | $ | 13,627,448 |
Return on average assets (GAAP) | 1.36 | % |  | 1.25 | % |  | 1.12 | % |  | 1.23 | % |  | 1.26 | % |  | 1.24 | % |  | 1.47 | %
Adjusted return on average assets (non-GAAP) | 1.32 | % |  | 1.27 | % |  | 1.14 | % |  | 1.28 | % |  | 1.26 | % |  | 1.24 | % |  | 1.46 | %
Average diluted common shares | 37,483 |  |  | 37,540 |  |  | 37,597 |  |  | 37,554 |  |  | 37,520 |  |  | 37,547 |  |  | 37,493 |
Diluted earnings per share (GAAP) | $ | 1.32 |  |  | $ | 1.19 |  |  | $ | 1.05 |  |  | $ | 1.16 |  |  | $ | 1.17 |  |  | $ | 3.56 |  |  | $ | 3.91 |
Adjusted diluted earnings per share (non-GAAP) | $ | 1.29 |  |  | $ | 1.21 |  |  | $ | 1.07 |  |  | $ | 1.20 |  |  | $ | 1.17 |  |  | $ | 3.57 |  |  | $ | 3.90 |

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| Quarter ended |  |
($ in thousands) | Sep 30, 2024 |  | Jun 30, 2024 |  | Mar 31, 2024 |  | Dec 31, 2023 |  | Sep 30, 2023 |  |  |  |
CALCULATION OF PRE-PROVISION NET REVENUE (PPNR) |  |  |  |
Net interest income | $ | 143,469 |  |  | $ | 140,529 |  |  | $ | 137,728 |  |  | $ | 140,732 |  |  | $ | 141,639 |  |  |  |  |
Noninterest income | 21,420 |  |  | 15,494 |  |  | 12,158 |  |  | 25,452 |  |  | 12,085 |  |  |  |  |
FDIC special assessment | — |  |  | — |  |  | 625 |  |  | 2,412 |  |  | — |  |  |  |  |
Core conversion expense | 1,375 |  |  | 1,250 |  |  | 350 |  |  | — |  |  | — |  |  |  |  |
Less gain on sale of investment securities | — |  |  | — |  |  | — |  |  | 220 |  |  | — |  |  |  |  |
Less gain (loss) on sales of other real estate owned | 3,159 |  |  | — |  |  | (2) |  |  | — |  |  | — |  |  |  |  |
Less noninterest expense | 98,007 |  |  | 94,017 |  |  | 93,501 |  |  | 92,603 |  |  | 88,644 |  |  |  |  |
PPNR (non-GAAP) | $ | 65,098 |  |  | $ | 63,256 |  |  | $ | 57,362 |  |  | $ | 75,773 |  |  | $ | 65,080 |  |  |  |  |

| Quarter ended |  |
($ in thousands) | Sep 30, 2024 |  | Jun 30, 2024 |  |  |  |  |  |  |  |  |  |
CALCULATION OF ESTIMATED INSURED DEPOSITS |  |  |  |  |  |  |  |  |  |  |  |  |
Estimated uninsured deposits per Call Report | $ | 4,180,066 |  |  | $ | 4,020,979 |  |  |  |  |  |  |  |  |  |  |
Collateralized/affiliate deposits | (463,103) |  |  | (454,084) |  |  |  |  |  |  |  |  |  |  |
Accrued interest on deposits | (5,830) |  |  | (5,632) |  |  |  |  |  |  |  |  |  |  |
Adjusted uninsured/uncollateralized deposits | 3,711,133 |  |  | 3,561,263 |  |  |  |  |  |  |  |  |  |  |
Estimated insured/collateralized deposits | 8,754,189 |  |  | 8,721,120 |  |  |  |  |  |  |  |  |  |  |
Total deposits | $ | 12,465,322 |  |  | $ | 12,282,383 |  |  |  |  |  |  |  |  |  |  |

20