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ENTERPRISE FINANCIAL SERVICES CORP
FOURTH QUARTER 2016 INVESTOR PRESENTATION
2
FORWARD-LOOKING STATEMENT
Some of the information in this report contains “forward-looking statements” within the meaning of and intended to be covered by the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified with use of terms such as “may,” “might,” “will, “should,”
“expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “could,” “continue” and the negative of these terms and similar words, although some
forward-looking statements may be expressed differently. Forward-looking statements also include, but are not limited to, statements regarding plans, objectives,
expectations or consequences of announced transactions (including the Company's announced pending merger with Jefferson County Bancshares, Inc. (“JCB”)),
and statements about the future performance, operations products and services of the Company and its subsidiaries. Our ability to predict results or the actual
effect of future plans or strategies is inherently uncertain. You should be aware that our actual results could differ materially from those anticipated by the forward-
looking statements or historical performance due to a number of factors, including, but not limited to: our ability to efficiently integrate acquisitions into our
operations, retain the customers of these businesses and grow the acquired operations; reputational risks; credit risk; changes in the appraised valuation of real
estate securing impaired loans; outcomes of litigation and other contingencies; exposure to general and local economic conditions; risks associated with rapid
increases or decreases in prevailing interest rates; consolidation within the banking industry; competition from banks and other financial institutions; our ability to
attract and retain relationship officers and other key personnel; burdens imposed by federal and state regulation; changes in regulatory requirements; changes in
accounting regulation or standards applicable to banks; and other risks discussed under the caption “Risk Factors” of our most recently filed Form 10-K and in Part
II, 1A of our most recently filed Form 10-Q, all of which could cause the Company’s actual results to differ from those set forth in the forward-looking statements.
Readers are cautioned not to place undue reliance on our forward-looking statements, which reflect management’s analysis and expectations only as of the date of
such statements. Forward-looking statements speak only as of the date they are made, and the Company does not intend, and undertakes no obligation, to publicly
revise or update forward-looking statements after the date of this report, whether as a result of new information, future events or otherwise, except as required by
federal securities law. You should understand that it is not possible to predict or identify all risk factors. Readers should carefully review all disclosures we file from
time to time with the Securities and Exchange Commission (the “SEC”) which are available on our website at www.enterprisebank.com under "Investor Relations."
Additional Information about the Merger and Where to Find It
In connection with the proposed merger transaction, the Company filed a Registration Statement on Form S-4 (file no. 333-214990) with the SEC that includes a Proxy
Statement of JCB, and a Prospectus of the Company, as well as other relevant documents concerning the proposed transaction. Shareholders are urged to read the
Registration Statement and the Proxy Statement/Prospectus regarding the merger and any other relevant documents filed with the SEC, as well as any amendments
or supplements to those documents, because they will contain important information.
A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about the Company and JCB, may be obtained at the SEC’s website
www.sec.gov. The Company, JCB, and some of their directors and executive officers may be deemed participants in the solicitation of proxies from the shareholders
of JCB in connection with the proposed merger. Information about the directors and executive officers of the Company is set forth in the Proxy Statement for the
Company’s 2016 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 16, 2016. Additional information regarding the interests of those
participants and other persons who may be deemed participants in the transaction may be obtained by reading the Proxy Statement/Prospectus regarding the
proposed merger. Free copies of this document may be obtained as described in the preceding paragraph.
3
COMPANY SNAPSHOT
FDIC Data
ENTERPRISE BANK
$4.1 Billion
IN TOTAL ASSETS
ENTERPRISE TRUST
Billion
IN ASSETS UNDER
ADMINISTRATION
CONCENTRATED ON PRIVATE BUSINESSES AND
OWNER FAMILIES
RELATIONSHIP DRIVEN
ATTRACT TOP TALENT IN MARKETS
PRODUCT BREADTH
• BANKING
• TRUST & WEALTH MANAGEMENT
• TREASURY MANAGEMENT
PROVEN ABILITY TO GROW COMMERCIAL AND
INDUSTRIAL “C&I” LOANS
STRONG BALANCE SHEET WITH ATTRACTIVE RISK
PROFILE
FOCUSED BUSINESS MODEL:
Operates in
MSAs
St. Louis
Kansas City
Phoenix
$1.7
4
SOURCE: SNL FINANCIAL
ACQUISITION OF JEFFERSON COUNTY BANCSHARES, INC.
ANNOUNCED OCTOBER 11, 2016
CONSISTENT WITH M&A EXPANSION STRATEGY
MERGER PARTNER WITH EXPERIENCED BANKERS
AND PROFESSIONALS
DISCIPLINED FINANCIAL TERMS
WELL KNOWN MARKET
EXTENSIVE DUE DILIGENCE
ENHANCES EFSC’S FOOTPRINT IN THE ST.
LOUIS MSA, WHILE BUILDING TOTAL BALANCE
SHEET SIZE TO ALMOST $5 BILLION IN PRO
FORMA ASSETS
TOP FOUR DEPOSIT MARKET SHARE IN
THE ST. LOUIS MSA
EXPANDS BRANCH PRESENCE
~$3 BILLION OF DEPOSITS
STRENGTHENS & DIVERSIFIES
CORE DEPOSIT GATHERING
CAPABILITIES
ATTRACTIVE BRANCH SIZES
TRANSACTION VALUE & CONSIDERATION (1)
APPROXIMATELY $130.6 MILLION TRANSACTION VALUE
• 3.3 MILLION EFSC COMMON SHARES ISSUED TO
JEFFERSON SHAREHOLDERS
• APPROXIMATELY $26.6 MILLION IN CASH PAID, INCLUDING
CASH-OUT VALUE OF JEFFERSON STOCK OPTIONS
• CONSIDERATION MIX TO JEFFERSON SHAREHOLDERS OF ~
81.5% STOCK, ~ 18.5% CASH
PRICE / TBVPS OF 140.7%
PRICE / LTM JUNE 2016 EPS OF 19.8X
PRICE / LTM JUNE 2016 EPS INCLUDING FULLY-PHASED
COST SAVINGS OF 10.9X
(1) BASED ON JEFFERSON’S 1,472,853 COMMON SHARES OUTSTANDING, 108,295 OPTIONS OUTSTANDING WITH A WAEP OF $54.72 AND EFSC’S 15-DAY VWAP OF $31.52
AS OF OCTOBER 10, 2016; ASSUMES ALL STOCK OPTIONS ARE CASHED OUT AT CLOSING
St. Louis
MSA
EFSC (16 BRANCHES TOTAL,
6 BRANCHES IN ST. LOUIS MSA)
JEFFERSON (18 BRANCHES TOTAL,
17 BRANCHES IN ST. LOUIS MSA)
5
DIFFERENTIATED BUSINESS MODEL: BUILT
FOR QUALITY EARNINGS GROWTH
FOCUSED AND WELL-DEFINED STRATEGY AIMED AT BUSINESS
OWNERS, EXECUTIVES AND PROFESSIONALS
TARGETED ARRAY OF BANKING AND WEALTH MANAGEMENT SERVICES
TO MEET OUR CLIENTS’ NEEDS
EXPERIENCED BANKERS AND ADVISORS
Enterprise Bank
Financial & Estate Planning
Tax Credit Brokerage
Business & Succession Planning
Trust Administration
Enterprise Trust
Investment Management
Enterprise University
Treasury Management
Personal & Private Banking
Commercial & Business Banking
PRIVATE
BUSINESSES
& OWNER
FAMILIES
Mortgage Banking
6
EU is a Continuing Series of More than 30 High-Impact
Workshops for Business Owners
DESIGNED TO HELP MANAGEMENT TEAMS GROW THEIR BUSINESSES
EU IS OFFERED SEMI-ANNUALLY TO ENTERPRISE CLIENTS AND PROSPECTS ALIKE
ENTERPRISE UNIVERSITY: A KEY BRAND
DIFFERENTIATOR
EU is Unique and Highly Valued; A Clear Differentiator
MORE THAN 15,000 PARTICIPANTS TO DATE
BUILT TO ENHANCE THE SALES PROCESS, SET THE BANK APART FROM
COMPETITORS
CREATES “RAVING FANS” FOR ENTERPRISE
7
5th RANKED IN
DEPOSIT SHARE1,
LARGEST PUBLICLY
HELD BANK BASED IN
ST. LOUIS2
STRONG TRACK RECORD OF SUCCESS IN
ST. LOUIS
1 6/30/2016 FDIC data
2 Excludes Bank Unit of Stifel Nicolaus
3 Excludes specialized lending products
$1.7
BILLION WEALTH
MANAGEMENT
BUSINESS
$1.6
3
BILLION IN
LOANS
$1.7
BILLION IN
DEPOSITS
CONSISTENT ABILITY
TO PRODUCE
LOAN GROWTH –
4% CAGR3
in C&I
Loans OVER
PAST FIVE YEARS
ATTRACTING
Top
Level
BANKERS
8
ENTERED MARKET IN 2000
$591 Million IN LOANS
$659 Million IN DEPOSITS
ADDITIONAL GROWTH OPPORTUNITIES
STRONG FOOTPRINT IN DESIRABLE Johnson
County
SIMILARITY TO ST. LOUIS’ Stable and
Diverse Economic Profile
ENABLES SIMILAR MARKET STRATEGIES
Kansas City
9
ADDITIONAL GROWTH OPPORTUNITIES
Source: 6/30/2016 FDIC data, SNL Financial
ESTABLISHED PRESENCE IN 2009
$226 Million IN LOANS
$107 Million IN DEPOSITS
Phoenix-Mesa-Scottsdale, AZ
REBOUNDING ECONOMY WITH Strong
Growth POTENTIAL. Twelfth
Largest Metro AREA IN THE NATION
HIGHLY CONCENTRATED BANKING MARKET Favorable for EFSC’s
Business Focused, HIGH SERVICE MODEL
Phoenix
72%
2016 Number 2016 Total Deposits 2016 Total
Institution (ST) of Branches in Market ($000) Market Share (%)
JPMorgan Chase & Co. (NY) 181 23,411 27.41%
Wells Fargo & Co. (CA) 171 20,901 24.47%
Bank of America Corp. (NC) 106 17,041 19.95%
Western Alliance Bancorp (AZ) 7 4,659 5.45%
BBVA 50 2,919 3.42%
Bank of Montreal 41 2,154 2.52%
Zions Bancorp. (UT) 19 1,720 2.01%
Midland Financial Co. (OK) 25 1,406 1.65%
U.S. Bancorp (MN) 64 1,405 1.64%
New York Community Bancorp (NY) 14 936 1.10%
Enterprise Financial Services (MO) 2 101 0.12%
Total for institutions in market 859 85,419
10
CONSUMER AND BUSINESS BANKING INITIATIVES
COMPLEMENT PRIMARY COMMERCIAL STRATEGY
HIGH Client Satisfaction PAVES WAY FOR ADD-ON PRODUCT SALES
Expansion of Commercial Relationships ACCOUNTED FOR
30% OF TREASURY MANAGEMENT PRODUCT IMPLEMENTATIONS YTD
Business Banking INCREMENTAL NEW NON INTEREST BEARING Deposits
REPRESENT A 40% Increase OVER THE PREVIOUS YEAR.
BRANCH ORGANIZATION MOBILIZED TO Enhance Personal Banking
Services TO COMMERCIAL AND BUSINESS BANKING CLIENTS
ESTABLISHED Distinct Sales and Relationship Management
Models TO EFFICIENTLY PENETRATE AND SERVICE THE MARKET
11
HISTORY OF STRONG C&I GROWTH
$763
$963
$1,042
$1,264
$1,484
$1,633
2011 2012 2013 2014 2015 Q4 '16
In millions
12
Tax Credit Programs. $144 MILLION IN LOANS OUTSTANDING RELATED TO FEDERAL NEW MARKETS, HISTORIC AND MISSOURI
AFFORDABLE HOUSING TAX CREDITS. $183 MILLION IN FEDERAL & STATE NEW MARKETS TAX CREDITS AWARDED TO DATE.
Enterprise Value Lending. $389 MILLION IN M&A RELATED LOANS OUTSTANDING, PARTNERING WITH PE FIRMS
Life Insurance Premium Financing. $306 MILLION IN LOANS OUTSTANDING RELATED TO HIGH NET WORTH ESTATE
PLANNING
FOCUSED LOAN GROWTH STRATEGIES
4.6%
12.5%
9.8%
Total Portfolio Loans
SPECIALIZED MARKET SEGMENTS HAVE GROWN TO 27% OF TOTAL PORTFOLIO
LOANS, OFFERING COMPETITIVE ADVANTAGES, RISK ADJUSTED PRICING AND
FEE INCOME OPPORTUNITIES.
EXPECTATIONS FOR FUTURE GROWTH
INCLUDE CONTINUED FOCUS IN THESE
SPECIALIZED MARKET SEGMENTS.
13
DRIVERS OF LOAN GROWTH
Enterprise Value
Lending
10.5%
Life Insurance
Premium Finance
11.0%
General Commercial
& Industrial
17.0%
Commercial/
Construction RE
42.8%
Residential RE
12.0%
Consumer & Other
4.8%
Tax Credits
1.9%
ENTERPRISE VALUE LENDING LIFE INSURANCE PREMIUM FINANCE
GENERAL COMMERCIAL & INDUSTRIAL COMMERCIAL/CONSTRUCTION RE
RESIDENTIAL RE CONSUMER & OTHER
TAX CREDITS
$367 MILLION
Dec 31, 2015 – Dec 31, 2016
14
PORTFOLIO LOAN TRENDS
$2,751
$2,833
$2,884
$3,038
$3,118
Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
In Millions
15
27%
36%
14%
23%
0
ATTRACTIVE DEPOSIT MIX
CD
Interest Bearing
Transaction Accts
DDA
MMA &
Savings
DEC 31, 2016
$3.2 B
Significant DDA COMPOSITION
Stable COST OF DEPOSITS
IMPROVING Core Funding
80% OF Core Deposits ARE
COMMERCIAL CUSTOMERS
$2,785
$2,932
$3,028
$3,125 $3,233
25.8% 24.5% 24.9% 24.4% 26.8%
Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
Deposits DDA %
Cost of Deposits 0.36%
16% DEPOSIT GROWTH
Q4 2015 – Q4 2016
In Millions
16
CONTINUED GROWTH IN CORE EPS
DRIVE NET INTEREST INCOME GROWTH
IN DOLLARS WITH FAVORABLE LOAN
GROWTH TRENDS
DEFEND NET INTEREST MARGIN
MAINTAIN HIGH QUALITY CREDIT
PROFILE
ACHIEVE FURTHER IMPROVEMENT IN
OPERATING LEVERAGE
ENHANCE DEPOSIT LEVELS TO
SUPPORT GROWTH
FINANCIAL SCORECARD
20%
12%
6 bps*
15 bps NPLs/Loans
3%
16%
Q4 2016 Compared to Q4 2015
* Plus 1 bp excluding $50 Million subordinated debt offering
17
FULL YEAR EARNINGS PER SHARE
$2.41 <$0.46>
$0.08 $2.03
EPS Non-Core Acquired
Assets
Other Non-Core
Expenses
Core
EPS
* A Non GAAP Measure, Refer to Appendix for Reconciliation
REPORTED VS. CORE EPS*
Q4 2016
18
POSITIVE MOMENTUM IN CORE*
EARNINGS PER SHARE
$0.28
$0.31
$0.37
$0.33
$0.35
$0.38
$0.44
$0.49
$0.47
$0.49 $0.49
$0.59
Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation
111% Core EPS Growth from Q1 2014 to Q4 2016
19
FULL YEAR EARNINGS PER SHARE TREND
$1.66
$0.51 < $0.02>
$0.04 <$0.16>
$2.03
2015 YTD Net Interest
Income
Portfolio Loan
Loss Provision
Non Interest
Income
Non Interest
Expense
2016 YTD
CHANGES IN CORE EPS*
Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
20
CORE NET INTEREST INCOME TREND*
In Millions
Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation
$28.7
$29.6
$30.2
$31.5
$32.2
3.50% 3.54% 3.52% 3.54% 3.44%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
$18.0
$19.0
$20.0
$21.0
$22.0
$23.0
$24.0
$25.0
$26.0
$27.0
$28.0
$29.0
$30.0
$31.0
$32.0
$33.0
$34.0
Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
Core Net Interest Income* FTE Net Interest Margin*
21
CREDIT TRENDS FOR PORTFOLIO LOANS
-10 bps
-1 bps
-6 bps
14 bps
12 bps
Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
Net Charge-offs (1)
(1) Portfolio loans only, excludes PCI (Purchased Credit Impaired) loans
Q4 2016 EFSC PEER(2)
NPA’S/ASSETS = 0.39% 0.51%
NPL’S/LOANS = 0.48% 0.64%
ALLL/NPL’S = 252% 138%
ALLL/LOANS = 1.20% 1.10%
(2) Peer data as of 9/30/2016 (source: SNL Financial)
In Millions
2015 NCO = 6 bps
$149
$82
$51
$154
$80
Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
Portfolio Loan Growth
In Millions
Net Charge-offs (1)
2016 NCO = 5 bps
$0.5
$0.8 $0.7
$3.0
$1.0
Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
Provision for Portfolio Loans
22
OPERATING EXPENSES TREND*
In Millions
Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation
$6.5 $6.1 $6.5 $6.4
$7.0
$1.7 $1.7 $1.6 $1.7
$1.7
$11.8 $12.6 $12.3 $12.1
$12.4
56.1% 57.4% 56.3%
52.8% 52.7%
-1
4
9
14
19
24
Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16
Other Occupancy Employee compensation and benefits Core Efficiency Ratio*
$20.4 $21.1 $20.0 $20.2 $20.4
23
OPERATING EXPENSE* LOOK-BACK
In Millions
Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation
$7.3 $7.0
$1.5 $1.7
$11.4 $12.4
62.8%
52.7%
Q4 '14 Q4 '16
Other Occupancy Employee compensation and benefits Core Efficiency Ratio*
$20.2
$21.1
24
FIRST QUARTER 2017 DIVIDEND
OF $0.11 PER COMMON SHARE
2,000,000 SHARE COMMON
STOCK REPURCHASE PLAN
INSTITUTED
~ 10% OF EFSC OUTSTANDING
SHARES
NO SPECIFIED END DATE
DISCIPLINED, PATIENT APPROACH
BASED ON MARKET CONDITIONS
SUFFICIENT CAPITAL TO
SUPPORT GROWTH PLANS
CAPITAL LEVELS PRUDENTLY MANAGED TO FACILITATE
GROWTH AND RETURNS
4.99%
6.02%
7.78%
8.69% 8.88% 8.76%
TANGIBLE COMMON EQUITY/TANGIBLE ASSETS
25
HIGHLY FOCUSED, Proven BUSINESS MODEL
STRONG TRACK RECORD OF Commercial Loan Growth
DIFFERENTIATED COMPETITIVE Lending Expertise
Replicating ST. LOUIS MODEL IN Kansas City AND Phoenix
DEMONSTRATED PROGRESS TOWARD INCREASED
RETURNS AND Enhancing Shareholder
Value
118%
68%
EFSC Index
3-Year Total Shareholder Return
Note: Index = SNL U.S. Bank $1B - $5B, as of 12/31/2016
Source: SNL
ENTERPRISE FINANCIAL
26
APPENDIX
4Q 2016 INVESTOR PRESENTATION
27
BALANCE SHEET POSITIONED FOR GROWTH
Modest Asset Sensitivity (200 BPS RATE SHOCK INCREASES
NII BY 5.3%)
63% FLOATING RATE LOANS, WITH THREE-YEAR AVERAGE DURATION
High-quality, Cash-flowing SECURITIES PORTFOLIO WITH FOUR
YEAR AVERAGE DURATION
27% DDA TO TOTAL DEPOSITS
8.8% Tangible Common Equity/Tangible ASSETS
28
SIGNIFICANT EARNINGS CONTRIBUTION (PRE-TAX)
Significant CONTRIBUTION TO FUTURE EARNINGS
WITH ESTIMATED FUTURE ACCRETABLE YIELD
OF $13 Million
SUCCESSFUL FDIC-ASSISTED ACQUISITION
STRATEGY
TERMINATED ALL LOSS SHARE AGREEMENTS WITH THE FDIC IN
DECEMBER 2015
2014 2015 2016
$4,856 $7,529 $15,018
Dollars in Thousands
Accretable yield estimate as of 12/31/2016
COMPLETED 4 FDIC-
Assisted TRANSACTIONS
SINCE DECEMBER 2009
CONTRIBUTED $66 Million
IN Net Earnings SINCE
ACQUISITION
$66 Million OF REMAINING
CONTRACTUAL CASH FLOWS WITH
$34 Million CARRYING
VALUE
EARLY TERMINATION CHARGE FROM Q4 2015 EARNED BACK
100% IN Q1 2016
29
EARNINGS PER SHARE
$0.67 <$0.14>
$0.06 $0.59
EPS Non-Core Acquired
Assets
Other Non-Core
Expenses
Core
EPS
* A Non GAAP Measure, Refer to Appendix for Reconciliation
REPORTED VS. CORE EPS*
Q4 2016
30
EARNINGS PER SHARE TREND
$0.49
$0.02
<$0.07
$0.04 < $0.03>
$0.59
Q3 '16 Net Interest
Income
Portfolio Loan
Loss Provision
Non Interest
Income
Non Interest
Expense
Q4 '16
CHANGES IN CORE EPS*
Note: * A Non GAAP Measure, Refer to Appendix for Reconciliation
31
USE OF NON-GAAP FINANCIAL MEASURES
The Company's accounting and reporting policies conform to generally accepted accounting principles in the United States
(“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as
Core net interest margin and other Core performance measures, in this presentation that are considered “non-GAAP financial
measures.” Generally, a non-GAAP financial measure is a numerical measure of a company's financial performance, financial
position or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable
measure calculated and presented in accordance with GAAP.
The Company considers its Core performance measures presented in this presentation as important measures of financial
performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the
impact of PCI loans and related income and expenses, the impact of nonrecurring items, and the Company's operating
performance on an ongoing basis. Core performance measures include contractual interest on PCI loans but exclude
incremental accretion on these loans. Core performance measures also exclude the Change in FDIC receivable, Gain or loss of
other real estate from PCI loans and expenses directly related to the PCI loans and other assets formerly covered under FDIC
loss share agreements. Core performance measures also exclude certain other income and expense items, such as executive
separation costs, merger related expenses, facilities charges, and gain/loss on sale of investment securities, the Company
believes to be not indicative of or useful to measure the Company's operating performance on an ongoing basis. The attached
tables contain a reconciliation of these Core performance measures to the GAAP measures.
The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and
ratios, provide meaningful supplemental information regarding the Company's performance and capital strength. The Company's
management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the
Company's operating results and related trends and when forecasting future periods. However, these non-GAAP measures and
ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP.
In the tables below, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial
measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the
financial measure for the periods indicated.
Peer group data consists of median of publicly traded banks with total assets from $1-$10 billion with commercial loans greater
than 20% and consumer loans less than 10%.
32
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Dec 31, Dec 31,
(in thousands, except per share data) 2016 2016 2016 2016 2015 2016 2015
CORE PERFORMANCE MEASURES
Net interest income 35,454$ 33,830$ 33,783$ 32,428$ 32,079$ 135,495$ 120,410$
Less: Incremental accretion income 3,279 2,296 3,571 2,834 3,412 11,980 12,792
Core net interest income 32,175 31,534 30,212 29,594 28,667 123,515 107,618
Total noninterest income 9,029 6,976 7,049 6,005 6,557 29,059 20,675
Less: Gain (loss) on sale of other real estate from PCI loans 1,085 (225) 705 - 81 1,565 107
Less: Other income from PCI assets 95 287 239 - - 621 -
Less: Gain on sale of investment securities - 86 - - - 86 23
Less: Change in FDIC loss share receivable - - - - (580) - (5,030)
Core noninterest income 7,849 6,828 6,105 6,005 7,056 26,787 25,575
Total core revenue 40,024 38,362 36,317 35,599 35,723 150,302 133,193
Provision for portfolio loan losses 964 3,038 716 833 543 5,551 4,872
Total noninterest expense 23,181 20,814 21,353 20,762 22,886 86,110 82,226
Less: Merger related expenses 1,084 302 - - - 1,386 -
Less: Facilities disposal 1,040 - - - - 1,040 -
Less: Other expenses related to PCI loans 172 270 325 327 423 1,094 1,558
Less: Executive severance - - 332 - - 332 -
Less: FDIC loss share termination - - - - 2,436 - 2,436
Less: FDIC clawback - - - - - - 760
Less: Other non-core expenses (209) - 250 - - 41 -
Core noninterest expense 21,094 20,242 20,446 20,435 20,027 82,217 77,472
Core income before income tax expense 17,966 15,082 15,155 14,331 15,153 62,534 50,849
Core income tax expense 6,021 5,142 5,237 4,897 5,073 21,297 17,058
Core net income 11,945$ 9,940$ 9,918$ 9,434$ 10,080$ 41,237$ 33,791$
Core diluted earnings per share 0.59$ 0.49$ 0.49$ 0.47$ 0.49$ 2.03$ 1.66$
Core return on average assets 1.19% 1.04% 1.07% 1.04% 1.13% 1.09% 1.00%
Core return on average common equity 12.31% 10.47% 10.89% 10.66% 11.46% 11.10% 10.08%
Core return on average tangible common equity 13.44% 11.46% 11.98% 11.76% 12.68% 12.18% 11.22%
Core efficiency ratio 52.70% 52.77% 56.30% 57.40% 56.06% 54.70% 58.17%
NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (FULLY TAX EQUIVALENT)
Net interest income 35,884$ 34,263$ 34,227$ 32,887$ 32,546$ 137,261$ 122,141$
Less: Incremental accretion income 3,279 2,296 3,571 2,834 3,412 11,980 12,792
Core net interest income 32,605$ 31,967$ 30,656$ 30,053$ 29,134$ 125,281$ 109,349$
Average earning assets 3,767,272$ 3,589,080$ 3,506,801$ 3,413,792$ 3,304,827$ 3,570,186$ 3,163,339$
Reported net interest margin 3.79% 3.80% 3.93% 3.87% 3.91% 3.84% 3.86%
Core net interest margin 3.44% 3.54% 3.52% 3.54% 3.50% 3.51% 3.46%
For the Quarter ended For the Year ended
33
Q&A
4Q 2016 INVESTOR PRESENTATION