Enterprise Financial Services : 2021 Fourth Quarter Earnings Release Presentation

Enterprise Financial Services Corp

2021 Fourth Quarter Earnings Webcast

Forward-Looking Statements

Some of the information in this report may contain "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 may include projections 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, yields and returns, loan diversification and credit management, shareholder value creation and the impact of the Company's integration of First Choice Bancorp ("First Choice") and other acquisitions.

Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "pro forma" 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. Factors that could cause or contribute to such differences include, but are not limited to, the Company's ability to efficiently integrate acquisitions, including the First Choice acquisition, 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 conditions, risks associated with rapid increases or decreases in prevailing interest rates, 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 regulatory requirements, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase-out of LIBOR, natural disasters, war or terrorist activities, or pandemics, including the COVID-19 pandemic, and their effects on economic and business environments in which we operate including the ongoing disruption to the financial market and other economic activity caused by the COVID-19 pandemic, and those factors and risks referenced from time to time in EFSC's filings with the Securities and Exchange Commission ("SEC"), including in the Company's Annual Reports on Form 10-K for the fiscal year ended December 31, 2020, and the Company's other filings with the SEC. For any forward-looking statements made in this report 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.

Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only, are not forecasts and may not reflect actual results.

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.

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Financial Highlights - 4Q21

		•	Net Income $50.8 million; Earnings per Share $1.33; $1.37 adjusted EPS* for
			merger-related expenses
	Earnings	•	PPNR* $63.3 million
	•	ROAA 1.52%; PPNR ROAA* 1.89%
		•	ROATCE* 18.81%
		•	Total Loans $9.0 billion
	Loans &	•	PPP Loans, $272 million, net of deferred fees
	•	Loan/Deposits 79%
	Deposits
	•	Total Deposits $11.3 billion
		•	Noninterest-bearing Deposits/Total Deposits 40%
	Asset	•	Nonperforming Assets/Assets 0.23%
	•	Nonperforming Loans/Loans 0.31%
	Quality
	•	Allowance Coverage Ratio 1.61%; 1.84% adjusted for guaranteed loans including PPP
		•	Tangible Common Equity/Tangible Assets* 8.13%; Adjusted for PPP* 8.31%
		•	Quarterly dividend of $0.20 per share, increased 5% to $0.21 in first quarter 2022
	Capital	•	Repurchased 577,478 shares at an average price of $47.65 per share
		•	Redeemed $50.0 million subordinated debentures
		•	Issued $75.0 million of 5% noncumulative perpetual preferred stock
	Acquisitions	•	Completed acquisition of First Choice Bancorp on July 21, 2021
	•	Completed core systems integration of First Choice Bancorp on October 18, 2021

*A Non-GAAP Measure, Refer to Appendix for Reconciliation.

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Areas of Focus

Organic Loan Growth and Pipeline

Leverage Position as Top 10 SBA Lender in 7a Loans

Talent Acquisitions to Accelerate Higher Growth Specialty Segments and Geographic Markets

Expand Strategic Approach to Loan Participations

Expand Tax Credit Business, Geographically

• Awarded $60 million allocation from New Markets Tax Credit program in 3Q21

Workforce Opportunities

• Remote Workforce and Return to Office
• Economical Branch Structure

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Total Loan Trends

In Millions

PPP**					PPP
$233				$272

First

Choice $1,944

PPP*				PPP					PPP
						$397
$613			$738

Seacoast

$1,224

*Excludes Seacoast PPP loans of $86 million included in acquisition total.	5
**Excludes First Choice PPP loans of $206 million included in acquisition total.