- Pre-tax, pre-provision operating earnings of $9.7 million, up 15% over prior year
- Net income of $737,000; earnings per share $0.01 after preferred dividends
- Non-performing loans reduced by 17% in second quarter
- Core deposits up 13% over prior year, demand deposits up 23%
- Wealth management revenue up 67% year-over-year
- Arizona assets grow to $300 million with asset purchase from FDIC
ST. LOUIS, July 20, 2010 (GLOBE NEWSWIRE) -- Enterprise Financial Services Corp (Nasdaq:EFSC) reported net income of $737,000 for the quarter ended June 30, 2010 compared to net income of $39,000 from continuing operations for the prior year period. After deducting dividends on preferred stock, the Company reported net income of $0.01 per fully diluted share for the second quarter of 2010 compared to a net loss from continuing operations of $0.03 per share for the second quarter of 2009.
Second quarter results included $9.0 million in loan loss provision, roughly equivalent to the prior year period, and 35% lower than the linked first quarter provision.
Pre-tax, pre-provision operating earnings were $9.7 million in the second quarter of 2010, 15% higher than the comparable period in 2009 and 7% higher than the first quarter of 2010.
Pre-tax, pre-provision income from continuing operations, which is a non-GAAP (Generally Accepted Accounting Principles) financial measure, is presented because the Company believes adjusting its results to exclude discontinued operations, loan loss provision expense, impairment charges, special FDIC assessments and unusual gains or losses provides shareholders with a more comparable basis for evaluating period-to-period operating results. A schedule reconciling GAAP pre-tax income (loss) to pre-tax, pre-provision income from continuing operations is provided in the attached tables.
Peter Benoist, President and Chief Executive Officer of Enterprise Financial, commented, "Core operating earnings rose again in the second quarter, with higher wealth management revenues bolstering stable net interest income. Our pre-tax, pre-provision operating earnings were 15% higher than a year ago, reflecting our ability to drive down funding costs and increase net interest income while controlling noninterest expense growth."
"At the same time, we are identifying opportunities in the Arizona market to grow our franchise and earnings base," said Benoist. "The purchase of Arizona assets from the FDIC earlier this month represents a significant advancement of our Arizona expansion strategy, adding clients and building our asset base there to $300 million. We expect that transaction to add $0.15 to $0.20 per share in this calendar year."
Benoist concluded, "With regard to asset quality, we reported significant declines in both non-performing loans and losses compared to the first quarter. However, we continue to remain cautious in this uncertain economy and recorded provision expense in excess of charge-offs for the quarter and increased reserves to 97% of non-performing loans. We do not foresee a rapid turnaround in the credit environment, particularly in light of the continued weak real estate markets."
Banking Line of Business
Deposits and Liquidity
The Company has significantly improved its deposit mix over the past year. Core deposits, which exclude brokered CDs and include CDARS deposits, increased 13% from the second quarter of 2009 to the second quarter of 2010. CDARS deposits represent $157 million of the core deposits. Brokered CDs have been reduced by 57% over the prior year period and at June 30, 2010 represented only 6% of total deposits. Noninterest bearing demand deposits increased 23% from the second quarter of 2009 and represented 16% of total deposits at June 30, 2010, up from 14% at June 30, 2009.
On a linked quarter basis, total deposits decreased 4%, or $82 million, as the Company continued to focus on lowering its funding costs by shedding $117 million in higher-cost CDs that were not tied to client relationships.
Loans
Portfolio loans decreased $132 million, or 6%, from a year ago, excluding the effects of derecognizing $231 million in loan participations in the second quarter of 2009. On a linked quarter basis, portfolio loans declined less than 2% as loan payoffs and paydowns offset new loans. The Company continues to pursue high quality lending relationships, funding $130 million in new loans and advances during the second quarter.
Approximately $333 million, or 19%, of the Company's total loan portfolio represented real estate that was "owner-occupied" by commercial and industrial businesses. Investor-owned commercial real estate loans represented approximately 26% of the Company's total loan portfolio, while construction, land acquisition and development loans represented less than 12% of the portfolio at June 30, 2010.
Asset quality
Nonperforming loans totaled $46.6 million for the second quarter of 2010, a 17% decrease from the linked first quarter and a 15% reduction from the second quarter of 2009. Nonperforming loans represented 2.63% of total loans at June 30, 2010, down from 3.10% at March 31, 2010. Nonperforming loans were 2.56% at June 30, 2009.
Nonperforming loans by segment at June 30, 2010 were as follows (in millions):
| Total portfolio | Non-performing | % NPL | |
| Construction, Real Estate/Land Acquisition & Development | $206.3 | $18.9 | 9.2% |
| Commercial Real Estate – investor owned | 468.4 | 15.3 | 3.3 |
| Commercial Real Estate – owner occupied | 333.4 | 3.2 | 1.0 |
| Residential Real Estate | 200.4 | 2.5 | 1.2 |
| Commercial & Industrial | 546.8 | 6.7 | 1.2 |
| Consumer & Other | 18.0 | -- | 0.0 |
| Total | $1,773.30 | $46.60 | 2.63% |
Commercial & Industrial and Commercial Real Estate – owner occupied loans, which represent 50% of the Company's total loan portfolio, accounted for less than $10 million in nonperforming loans at June 30, 2010. The nonperforming loan ratios for Commercial & Industrial and Commercial Real Estate – owner occupied loan portfolios were only 1.2% and 1.0%, respectively.
Other real estate at June 30, 2010 was $26.0 million, up $4.9 million from March 31, 2010 and up $10.0 million from the prior year period. During the second quarter, the Company sold $5.0 million in other real estate, recording a gain of $302,000. Year to date, the Company has sold $14.3 million in other real estate at a net gain of $290,000. At June 30, 2010, other real estate was comprised of 27% residential lots, 35% completed homes and 38% commercial properties.
Net charge-offs in the second quarter were $7.8 million, representing an annual rate of 1.76% of average loans. By comparison, net charge-offs were $12.7 million in the linked first quarter, or 2.83% of average loans. The annual rate of net charge-offs for the prior year second quarter was 1.22%.
Provision for loan losses was $9.0 million in the second quarter of 2010, down from $13.8 million in the first quarter. The lower provision reflected fewer loan risk rating downgrades during the quarter. Since year-end 2009, the Company's watch list credits as a percentage of total loans have remained relatively flat. Prior year second quarter loan loss provision was $9.1 million.
The Company increased its allowance for loan losses to 2.55% of portfolio loans at June 30, 2010, representing 97% of total nonperforming loans. The loan loss allowance was 2.45% at March 31, 2010 and 2.10% at June 30, 2009.
Net Interest Income
Net interest income for the quarter ended June 30, 2010 for the banking segment increased 6% over the prior year and was flat compared to the linked quarter.
Including the effect of parent company debt, the net interest rate margin was 3.46% for the second quarter of 2010, compared to 3.10% for the prior year period. The net interest rate margin was flat compared to the linked quarter.
The Company has been effectively managing down its cost of interest-bearing deposits, reducing the average cost from 2.03% for the quarter ended June 30, 2009 to 1.44% for the quarter ended June 30, 2010. At the same time, the average loan yield increased from 5.45% to 5.62% over the twelve month period.
Arizona Operations
On July 13, 2010, Enterprise Bank & Trust acquired approximately $256 million in assets from the FDIC in connection with the failure of an Oklahoma bank with operations in Arizona. The Company acquired the assets at a discount of 12.5%. As part of the purchase transaction, Enterprise and the FDIC entered into a loss sharing agreement on the assets acquired. Approximately $166 million of the assets acquired are performing loans with an average loan size of less than $1 million. The overall portfolio loan mix consists primarily of commercial real estate and construction and development loans, mostly located in the Phoenix area. Based on estimated cash flows at this point, the Company expects this portfolio of assets to yield 7-8% before funding costs, expenses and taxes.
The transaction, which increased Enterprise's total assets in Arizona to roughly $300 million, is expected to add $0.15 to $0.20 to the Company's 2010 earnings per share, excluding the impact of the preferred dividends.
The Company opened its second Arizona branch, located in central Phoenix, during the second quarter. Enterprise also operates a branch in the West Valley suburbs of greater Phoenix. During the quarter, the Company closed a branch in Mesa, Arizona that it acquired in an FDIC-assisted transaction in December 2009.
Wealth Management Line of Business
Fee income from the Wealth Management line of business, including trust revenues and income from state tax credit brokerage activities, totaled $2.2 million in the second quarter of 2010, 67% higher than the prior year period. A large portion of the increase was attributable to higher revenues from state tax credit brokerage activities in the second quarter of 2010.
Trust
Enterprise Trust revenues increased $122,000, or 10%, in the second quarter of 2010 over the comparable period in 2009. Second quarter revenues were flat compared to the first quarter. Trust assets under administration increased 11% to $1.2 billion compared to the prior year.
State Tax Credit Brokerage
For the second quarter of 2010, state tax credit brokerage activities generated $851,000 in gains versus $109,000 for the second quarter of 2009. Second quarter revenues included $398,000 in gains from the sale of state tax credits and $453,000 in net gains in the fair value of tax credit assets and related interest rate hedges. For the first quarter of 2010, state tax credit revenues were $518,000.
Other Business Results
The Company's capital ratios remain solid. Total capital to risk-weighted assets was 14.45% at June 30, 2010 compared to 13.13% at June 30, 2009 and 14.29% at March 31, 2010. The tangible common equity ratio was 6.23% at June 30, 2010, versus 5.08% at June 30, 2009 and 5.93% at March 31, 2010. A reconciliation of shareholders' equity to tangible common equity and total assets to tangible assets is provided in the attached tables. The Company believes that the tangible common equity ratio is an important financial measure of capital strength even though it is considered to be a non-GAAP measure. The Company continues to exceed regulatory standards for "well-capitalized" institutions.
For the second quarter of 2010, noninterest expenses were $14.1 million, 2% higher than the prior year period. The increase resulted from an increase in salaries and benefits and loan, legal and other real estate expense, offset by a decrease in FDIC insurance expense. The $701,000 increase in salaries and benefits was primarily attributable to the recruitment of several prominent St. Louis bankers and the accrual of higher variable compensation expense. The $482,000 increase in loan, legal and other real estate expense was largely due to fair value adjustments on other real estate. The $854,000 decrease in FDIC insurance was attributable to the $1.1 million accrual for the FDIC special assessment in the second quarter of 2009. On a linked quarter basis, noninterest expenses increased $491,000, or 4%, due to the new hires and variable compensation accrual mentioned above.
The Company's efficiency ratio was 59.8% for the quarter ended June 30, 2010, compared to 65.0% for the prior year period and 60.2% for the first quarter of 2010.
Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis, Kansas City and Phoenix. Enterprise is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.
This press release contains forward-looking statements, which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those contemplated from such statements. We use the words "expect," "intend," "anticipate," and variations of such words and similar expressions in this communication to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, burdens imposed by federal and state regulations of banks, credit risk, exposure to local and national economic conditions, changes in real estate markets, risks associated with rapid increase or decrease in prevailing interest rates, effects of mergers and acquisitions, effects of critical accounting policies and judgments, legal and regulatory developments and competition from banks and other financial institutions, as well as other risk factors described in Enterprise Financial's 2009 Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.
| ENTERPRISE FINANCIAL SERVICES CORP | ||||
| CONSOLIDATED FINANCIAL SUMMARY | ||||
| (unaudited) | ||||
| (In thousands, except per share data) | For the Quarter Ended | For the Six Months Ended | ||
| INCOME STATEMENTS |
Jun 30, 2010 |
Restated Jun 30, 2009 |
Jun 30, 2010 |
Restated Jun 30, 2009 |
| NET INTEREST INCOME | ||||
| Total interest income | $ 26,710 | $ 30,341 | $ 53,985 | $ 60,159 |
| Total interest expense | 8,108 | 12,846 | 16,760 | 25,815 |
| Net interest income | 18,602 | 17,495 | 37,225 | 34,344 |
| Provision for loan losses | 8,960 | 9,073 | 22,760 | 25,532 |
| Net interest income after provision for loan losses | 9,642 | 8,422 | 14,465 | 8,812 |
| NONINTEREST INCOME | ||||
| Wealth Management revenue | $ 1,302 | $ 1,180 | $ 2,599 | $ 2,387 |
| Deposit service charges | 1,212 | 1,249 | 2,386 | 2,544 |
| Sale of other real estate | 302 | (2) | 290 | 57 |
| State tax credit activity, net | 851 | 109 | 1,369 | 63 |
| Sale of securities | 525 | 636 | 1,082 | 952 |
| Other income | 849 | 576 | 1,371 | 576 |
| Total noninterest income | 5,041 | 3,748 | 9,097 | 6,579 |
| NONINTEREST EXPENSE | ||||
| Salaries and benefits | 7,035 | 6,334 | 13,633 | 12,608 |
| Occupancy | 1,097 | 1,197 | 2,270 | 2,294 |
| Furniture and equipment | 325 | 344 | 694 | 688 |
| Goodwill impairment charge | -- | -- | -- | 45,377 |
| Other | 5,689 | 5,929 | 11,204 | 10,755 |
| Total noninterest expense | 14,146 | 13,804 | 27,801 | 71,722 |
| Income (loss) from continuing operations before income tax | 537 | (1,634) | (4,239) | (56,331) |
| Income tax (benefit) expense | (200) | (1,673) | (1,962) | (4,524) |
| Income (loss) from continuing operations | 737 | 39 | (2,277) | (51,807) |
| (Loss) income from discontinued operations before income tax | -- | (443) | -- | 35 |
| Income tax (benefit) expense | -- | (103) | -- | 15 |
| (Loss) income from discontinued operations | -- | (340) | -- | 20 |
| Net income (loss) | 737 | (301) | (2,277) | (51,787) |
| Dividends on preferred stock | (615) | (602) | (1,227) | (1,201) |
| Net income (loss) available to common shareholders | $ 122 | $ (903) | $ (3,504) | $ (52,988) |
| Basic earnings (loss) per share from continuing operations | $ 0.01 | $ (0.04) | $ (0.24) | $ (4.13) |
| Diluted earnings (loss) per share from continuing operations | 0.01 | (0.03) | (0.24) | (4.13) |
| Basic loss per share from discontinued operations | -- | (0.03) | -- | -- |
| Diluted loss per share from discontinued operations | -- | (0.03) | -- | -- |
| Basic earnings (loss) per share | 0.01 | (0.07) | (0.24) | (4.13) |
| Diluted earnings (loss) per share | 0.01 | (0.07) | (0.24) | (4.13) |
| Return on average assets | 0.02% | (0.15%) | (0.30%) | (4.32%) |
| Return on average common equity | 0.34% | (2.78%) | (4.90%) | (68.28%) |
| Efficiency ratio from continuing operations | 59.84% | 64.98% | 60.02% | 175.26% |
| Noninterest expense from continuing operations to average assets | 2.42% | 2.26% | 2.40% | 5.84% |
| YIELDS (fully tax equivalent) | ||||
| Loans | 5.62% | 5.45% | 5.64% | 5.40% |
| Securities | 2.85% | 3.63% | 2.80% | 3.97% |
| Federal funds sold | 0.31% | 0.53% | 0.33% | 0.52% |
| Yield on earning assets | 4.95% | 5.32% | 5.00% | 5.30% |
| Interest-bearing deposits | 1.44% | 2.03% | 1.50% | 2.08% |
| Subordinated debt | 5.84% | 6.19% | 5.85% | 6.31% |
| Borrowed funds | 2.55% | 3.51% | 2.64% | 3.35% |
| Cost of paying liabilities | 1.75% | 2.53% | 1.81% | 2.55% |
| Net interest spread | 3.20% | 2.79% | 3.19% | 2.75% |
| Net interest rate margin | 3.46% | 3.10% | 3.46% | 3.06% |
| ENTERPRISE FINANCIAL SERVICES CORP | |||||
| CONSOLIDATED FINANCIAL SUMMARY (cont.) | |||||
| (unaudited) | |||||
| (In thousands) | |||||
| At the Quarter Ended | |||||
| BALANCE SHEETS |
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sep 30, 2009 |
Restated Jun 30, 2009 |
| ASSETS | |||||
| Cash and due from banks | $ 13,711 | $ 13,548 | $ 16,064 | $ 12,519 | $ 41,490 |
| Federal funds sold | 30 | 2,199 | 7,472 | 1,771 | 4,252 |
| Interest-bearing deposits | 66,347 | 125,822 | 83,430 | 82,651 | 2,893 |
| Debt and equity investments | 273,021 | 280,329 | 295,650 | 211,069 | 169,309 |
| Loans held for sale | 2,518 | 1,517 | 4,243 | 2,130 | 2,004 |
| Portfolio loans | 1,773,315 | 1,800,302 | 1,833,203 | 2,113,365 | 2,136,125 |
| Less allowance for loan losses | 45,258 | 44,079 | 42,995 | 45,019 | 44,768 |
| Net loans | 1,728,057 | 1,756,223 | 1,790,208 | 2,068,346 | 2,091,357 |
| Other real estate | 26,024 | 21,087 | 25,224 | 19,273 | 16,053 |
| Premises and equipment, net | 21,169 | 21,697 | 22,301 | 23,042 | 23,872 |
| State tax credits, held for sale | 60,134 | 52,067 | 51,258 | 47,950 | 42,609 |
| Goodwill | 1,974 | 1,974 | 1,974 | 3,134 | 3,134 |
| Core deposit intangible | 1,423 | 1,531 | 1,643 | 1,759 | 1,874 |
| Other amortizing intangibles | -- | -- | -- | 932 | 1,081 |
| Assets held for sale | -- | -- | 4,000 | -- | -- |
| Other assets | 78,321 | 83,411 | 62,188 | 44,049 | 46,337 |
| Total assets | $ 2,272,729 | $ 2,361,405 | $ 2,365,655 | $ 2,518,625 | $ 2,446,265 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Noninterest-bearing deposits | 293,619 | 300,835 | 289,658 | 257,901 | 238,139 |
| Interest-bearing deposits | 1,528,204 | 1,603,219 | 1,651,758 | 1,595,730 | 1,521,125 |
| Total deposits | 1,821,823 | 1,904,054 | 1,941,416 | 1,853,631 | 1,759,264 |
| Subordinated debentures | 85,081 | 85,081 | 85,081 | 85,081 | 85,081 |
| FHLB advances | 123,100 | 128,100 | 128,100 | 139,001 | 139,520 |
| Federal funds purchased | -- | -- | -- | -- | 21,650 |
| Secured borrowings | -- | -- | -- | 229,012 | 236,110 |
| Other borrowings | 56,681 | 60,438 | 39,338 | 36,097 | 33,824 |
| Other liabilities | 9,172 | 8,498 | 7,808 | 9,132 | 9,366 |
| Total liabilities | 2,095,857 | 2,186,171 | 2,201,743 | 2,351,954 | 2,284,815 |
| Shareholders' equity | 176,872 | 175,234 | 163,912 | 166,671 | 161,450 |
| Total liabilities and shareholders' equity | $ 2,272,729 | $ 2,361,405 | $ 2,365,655 | $ 2,518,625 | $ 2,446,265 |
| ENTERPRISE FINANCIAL SERVICES CORP | |||||
| CONSOLIDATED FINANCIAL SUMMARY (cont.) | |||||
| (unaudited) | |||||
| (In thousands, except per share data) | For the Quarter Ended | ||||
|
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sep 30, 2009 |
Restated Jun 30, 2009 |
|
| EARNINGS SUMMARY | |||||
| Net income (loss) from continuing operations | |||||
| Net interest income | $ 18,602 | 18,623 | $ 17,914 | $ 17,383 | $ 17,495 |
| Provision for loan losses | 8,960 | 13,800 | 8,400 | 6,480 | 9,073 |
| Wealth Management revenue | 1,302 | 1,297 | 1,002 | 1,135 | 1,180 |
| Noninterest income | 3,739 | 2,759 | 3,223 | 7,938 | 2,568 |
| Noninterest expense | 14,146 | 13,655 | 13,731 | 12,973 | 13,804 |
| Income (loss) before income tax | 537 | (4,776) | 8 | 7,003 | (1,634) |
| Net income (loss) from continuing operations | 737 | (3,014) | 380 | 4,758 | 39 |
| Net loss from discontinued operations | -- | -- | (1,234) | (70) | (340) |
| Net income (loss) available to common shareholders | 122 | (3,626) | (1,462) | 4,082 | (903) |
| Diluted earnings (loss) per common share | $ 0.01 | $ (0.25) | $ (0.12) | $ 0.31 | $ (0.07) |
| Return on average common equity | 0.34% | (10.26%) | (4.25%) | 12.03% | (2.78%) |
| Net interest rate margin (fully tax equivalent) | 3.46% | 3.46% | 3.15% | 2.97% | 3.10% |
| Efficiency ratio from continuing operations | 59.84% | 60.21% | 62.02% | 49.04% | 64.98% |
| MARKET DATA | |||||
| Book value per common share | $ 9.74 | $ 9.65 | $ 10.25 | $ 10.52 | $ 10.13 |
| Tangible book value per common share | $ 9.51 | $ 9.41 | $ 9.97 | $ 10.07 | $ 9.65 |
| Market value per share | $ 9.64 | $ 11.06 | $ 7.71 | $ 9.25 | $ 9.09 |
| Period end common shares outstanding | 14,854 | 14,852 | 12,883 | 12,834 | 12,834 |
| Average basic common shares | 14,854 | 14,418 | 12,835 | 12,834 | 12,833 |
| Average diluted common shares | 14,855 | 14,418 | 12,835 | 14,277 | 12,833 |
| ASSET QUALITY | |||||
| Net charge-offs | 7,781 | $ 12,716 | $ 9,041 | $ 6,229 | $ 6,592 |
| Nonperforming loans | $ 46,550 | $ 55,785 | $ 38,540 | $ 46,982 | $ 54,699 |
| Nonperforming loans to total loans | 2.63% | 3.10% | 2.10% | 2.22% | 2.56% |
| Nonperforming assets to total assets | 3.23% | 3.30% | 2.70% | 2.63% | 2.89% |
| Allowance for loan losses to total loans | 2.55% | 2.45% | 2.35% | 2.13% | 2.10% |
| Net charge-offs to average loans (annualized) | 1.76% | 2.83% | 1.90% | 1.16% | 1.22% |
| CAPITAL | |||||
| Average common equity to average assets | 6.18% | 6.14% | 5.67% | 5.40% | 5.31% |
| Tier 1 capital to risk-weighted assets | 11.93% | 11.78% | 10.67% | 9.49% | 8.47% |
| Total capital to risk-weighted assets | 14.41% | 14.29% | 13.32% | 11.94% | 13.13% |
| Tangible common equity to tangible assets | 6.23% | 5.93% | 5.44% | 5.14% | 5.08% |
| AVERAGE BALANCES | |||||
| Portfolio loans | $ 1,775,642 | $ 1,821,345 | $ 1,887,623 | $ 2,121,518 | $ 2,168,417 |
| Earning assets | 2,187,454 | 2,207,381 | 2,295,486 | 2,386,575 | 2,323,334 |
| Total assets | 2,342,523 | 2,336,788 | 2,406,403 | 2,493,163 | 2,447,974 |
| Deposits | 1,889,947 | 1,895,937 | 1,926,800 | 1,826,229 | 1,748,636 |
| Shareholders' equity | 176,785 | 175,223 | 168,143 | 166,174 | 161,426 |
| LOAN PORTFOLIO | |||||
| Commercial and industrial | $ 546,737 | $ 553,487 | $ 558,016 | $ 703,662 | $ 673,154 |
| Commercial real estate | 801,794 | 807,293 | 820,191 | 793,569 | 846,079 |
| Construction real estate | 206,321 | 214,900 | 224,390 | 376,882 | 348,598 |
| Residential real estate | 200,414 | 207,239 | 214,066 | 220,215 | 245,296 |
| Consumer and other | 18,049 | 17,383 | 16,540 | 19,037 | 22,998 |
| Total loan portfolio | $ 1,773,315 | $ 1,800,302 | $ 1,833,203 | $ 2,113,365 | $ 2,136,125 |
| DEPOSIT PORTFOLIO | |||||
| Noninterest-bearing accounts | $ 293,619 | $ 300,835 | $ 289,658 | $ 257,901 | $ 238,139 |
| Interest-bearing transaction accounts | 198,747 | 203,006 | 142,061 | 121,935 | 129,680 |
| Money market and savings accounts | 687,116 | 640,504 | 699,374 | 635,607 | 619,686 |
| Certificates of deposit | 642,341 | 759,709 | 810,323 | 838,188 | 771,759 |
| Total deposit portfolio | $ 1,821,823 | $ 1,904,054 | $ 1,941,417 | $ 1,853,631 | $ 1,759,264 |
| ENTERPRISE FINANCIAL SERVICES CORP | |||||
| CONSOLIDATED FINANCIAL SUMMARY (cont.) | |||||
| (unaudited) | |||||
| (In thousands, except per share data) | For the Quarter Ended | ||||
|
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sep 30, 2009 |
Restated Jun 30, 2009 |
|
| YIELDS (fully tax equivalent) | |||||
| Loans | 5.62% | 5.67% | 5.54% | 5.47% | 5.45% |
| Securities | 2.85% | 2.76% | 2.78% | 3.33% | 3.63% |
| Federal funds sold | 0.31% | 0.36% | 0.21% | 0.17% | 0.51% |
| Yield on earning assets | 4.95% | 5.05% | 4.89% | 5.12% | 5.32% |
| Interest-bearing deposits | 1.44% | 1.56% | 1.72% | 1.91% | 2.03% |
| Subordinated debt | 5.84% | 5.86% | 5.80% | 5.91% | 6.19% |
| Borrowed funds | 2.55% | 2.74% | 3.19% | 3.96% | 3.51% |
| Cost of paying liabilities | 1.75% | 1.87% | 2.06% | 2.48% | 2.53% |
| Net interest spread | 3.20% | 3.18% | 2.83% | 2.64% | 2.79% |
| Net interest rate margin | 3.46% | 3.46% | 3.15% | 2.97% | 3.10% |
| WEALTH MANAGEMENT | |||||
| Trust Assets under management | $ 722,895 | $ 773,069 | $ 750,755 | $ 710,224 | $ 691,927 |
| Trust Assets under administration | 1,230,827 | 1,320,714 | 1,279,971 | 1,190,130 | 1,113,466 |
| RECONCILIATION OF U.S. GAAP FINANCIAL MEASURES | |||||
| PRE-TAX INCOME (LOSS) FROM CONTINUING OPERATIONS TO PRE-TAX, PRE-PROVISION INCOME FROM CONTINUING OPERATIONS | |||||
| For the Quarter Ended | |||||
| (In thousands) |
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sep 30, 2009 |
Restated Jun 30, 2009 |
| Pre-tax income (loss) from continuing operations | $ 537 | $ (4,776) | $ 8 | $ 7,003 | $ (1,634) |
| Sales and fair value writedowns of other real estate | 678 | 586 | 1,166 | 602 | 508 |
| Sale of securities | (525) | (557) | (3) | -- | (636) |
| Gain on extinguishment of debt | -- | -- | (2,062) | (5,326) | -- |
| FDIC special assessment (included in Other noninterest expense) | -- | -- | -- | (202) | 1,100 |
| Income (loss) before income tax | 690 | (4,747) | (891) | 2,077 | (662) |
| Provision for loan losses | 8,960 | 13,800 | 8,400 | 6,480 | 9,073 |
| Pre-tax, pre-provision income from continuing operations | $ 9,650 | $ 9,053 | $ 7,509 | $ 8,557 | $ 8,411 |
| SHAREHOLDERS' EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS | |||||
| For the Quarter Ended | |||||
| (In thousands) |
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Sep 30, 2009 |
Restated Jun 30, 2009 |
| Shareholders' equity | $ 176,872 | $ 175,234 | $ 163,912 | $ 166,671 | $ 161,450 |
| Less: Preferred stock | (32,153) | (31,976) | (31,802) | (31,631) | (31,463) |
| Less: Goodwill | (1,974) | (1,974) | (1,974) | (3,134) | (3,134) |
| Less: Intangible assets | (1,423) | (1,531) | (1,643) | (2,691) | (2,955) |
| Tangible common equity | $ 141,322 | $ 139,753 | $ 128,494 | $ 129,215 | $ 123,898 |
| Total assets | $ 2,272,729 | $ 2,361,405 | $ 2,365,655 | $ 2,518,625 | $ 2,446,265 |
| Less: Goodwill | (1,974) | (1,974) | (1,974) | (3,134) | (3,134) |
| Less: Intangible assets | (1,423) | (1,531) | (1,643) | (2,691) | (2,955) |
| Tangible assets | $ 2,269,332 | $ 2,357,900 | $ 2,362,038 | $ 2,512,800 | $ 2,440,176 |
| Tangible common equity to tangible assets | 6.23% | 5.93% | 5.44% | 5.14% | 5.08% |