- 2010 earnings increase to $9.1 million, or $0.45 per
fully diluted share
- Core deposits increase $356 million, or 20%, over
December 31, 2009
- Nonperforming loans reduced 11% in the fourth quarter
to 2.45% of loans
- Enterprise Bank & Trust acquires Legacy Bank in
third FDIC-assisted Arizona transaction
Enterprise Financial Services Corp (Nasdaq:EFSC) (the "Company")
reported net income of $9.1 million for the year ended December 31,
2010 compared to a net loss of $48.0 million for the prior year.
The net loss for 2009 was primarily attributable to a $45.4 million
non-cash accounting charge to eliminate goodwill related to the
Company's banking segment. After deducting dividends on preferred
stock, the Company reported net income of $0.45 per fully diluted
share for 2010 compared to a net loss of $3.92 per fully diluted
share for 2009.
For the fourth quarter of 2010, the Company reported net income
of $6.4 million compared to a net loss of $854,000 for the prior
year period. After deducting dividends on preferred stock, the
Company reported net income of $0.38 per diluted share for the
fourth quarter of 2010 compared to a net loss of $0.12 per diluted
share for the fourth quarter of 2009.
In addition, on January 7, 2011, Enterprise Bank & Trust
("Enterprise"), the Company's banking subsidiary, entered into a
loss sharing agreement with the FDIC and acquired certain assets
and assumed certain liabilities of Legacy Bank of Scottsdale,
Arizona ("Legacy"). The acquisition consisted of assets of
approximately $131.9 million and total deposits of approximately
$113.7 million, including approximately $70.2 million of brokered
and CDARS time deposits. Approximately $43.5 million of the
deposits were assumed at a premium of 1%. The assets were
purchased at a 7.6% discount to their historic book value. As part
of the transaction, Enterprise and the FDIC have entered into a
loss sharing agreement whereby the FDIC will reimburse Enterprise
for 80% of losses incurred on certain loans and other real estate
("covered assets"). In addition, Enterprise also acquired
approximately $55.6 million of discretionary and $13.6 million of
non-discretionary trust assets. This transaction will not
materially change the Company's regulatory capital ratios and is
anticipated to add approximately $0.15 to $0.20 to Enterprise's
2011 earnings per share, subject to the underlying assumptions and
final valuations of the assets.
Peter Benoist, President and Chief Executive Officer, commented,
"Enterprise's fourth quarter results represent a continuing trend
in increased quarterly earnings per share and improved operating
fundamentals. Asset quality trends, including fewer risk
rating downgrades and reduced nonperforming loan totals, are
encouraging. Disciplined pricing on both loans and deposits
coupled with the strong yields on covered loans acquired in our
July 2010 FDIC-assisted acquisition of certain assets of Home
National have allowed us to maintain solid net interest margins as
we continue to position for improvement in the overall
economy. While the Company experienced a modest decline in net
loans outstanding during the quarter, our loan pipelines remain
strong particularly in the Commercial & Industrial
category."
Benoist continued, "Solid core deposit growth, particularly in
the fourth quarter, double digit increases in Wealth Management
revenues, and a strong emphasis on expense management have all
contributed to strengthening our operating results."
On a pre-tax, pre-provision basis, the Company's operating
income from continuing operations was $13.6 million in the fourth
quarter of 2010, an 81% increase from the prior year period of $7.5
million. On a linked quarter basis, pre-tax, pre-provision
operating income declined $2.8 million, or 17%, primarily due to
$900,000 in lower net gains on sales of tax credits, a $750,000
accrual against a potential fraud loss on a depository account and
approximately $1.2 million of various expenses related to covered
assets, variable compensation, and reserves related to unfunded
commitments.
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, 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.
Banking Segment
Deposits
Core deposits grew significantly in the fourth quarter of
2010. These deposits, which exclude brokered CDs and include
reciprocal CDARS deposits, increased $319.2 million, or 18%, from
September 30, 2010. The increase was due to a $61.9 million
increase in demand deposits, a $168.5 million increase in money
market accounts and other interest-bearing deposit accounts and a
$99.8 million increase in non-CDARS certificates of
deposit. Reciprocal CDARS deposits decreased by $11.0 million
in the fourth quarter of 2010.
While the Company historically experiences large increases in
fourth quarter core deposits (followed by first quarter
reductions), the fourth quarter 2010 growth was
exceptional. Approximately $34.0 million of the money market
growth and $73.0 million of the certificate of deposit growth was
related to our new Enterprise Advisory Services initiative, a
proprietary deposit platform marketed to registered investment
advisory firms.
Core deposits increased $355.8 million, or 20%, to $2.1 billion
from December 31, 2009. Noninterest-bearing demand deposits
increased $76.4 million, or 26%, in 2010 and represented 16% of
total deposits at December 31, 2010, up from 15% at December 31,
2009. Management believes a portion of the growth in
noninterest-bearing demand deposits is the result of the FDIC
deposit guarantee and relatively low rates on non-guaranteed
accounts.
Total deposits at December 31, 2010 were $2.3 billion, an
increase of $356.3 million, or 18%, over December 31, 2009 and
$257.9 million, or 13%, higher than September 30, 2010. The
Company has maintained a favorable deposit mix, with core deposits
representing 93% of total deposits at December 31, 2010, unchanged
from the prior year period. CDARS deposits totaled $160.5
million at December 31, 2010 compared to $134.8 million at December
31, 2009.
Loans
Portfolio loans totaled $1.9 billion at December 31, 2010,
including $127 million of loans covered under FDIC loss share
agreements. While loan pipelines continue to strengthen,
particularly in the St. Louis market, payoffs and paydowns more
than offset the new loans generated in the quarter. Excluding
the loans covered under loss share, in the fourth quarter of 2010,
portfolio loans decreased $30.3 million, or 1.7%, from September
30, 2010 as the Company continued to decrease its exposure to
investor owned commercial real estate credits. For the full
year, net loans declined $52.1 million, or 2.9%. Excluding the
loans covered under loss share, Commercial & Industrial loans
increased 7.2% during the year and represent more than 30% of the
Company's loan portfolio at December 31, 2010.
Asset quality
Nonperforming loans, including troubled debt restructurings of
$7.9 million, were $46.4 million at December 31, 2010 compared to
$51.9 million for the linked third quarter and $38.5 million at
December 31, 2009. During the quarter ended December 31, 2010,
there were $19.7 million of additions, $7.9 million of chargeoffs,
other principal reductions of $7.3 million, and $8.7 million of
assets transferred to other real estate. Of the $19.7 million
in new nonperforming loans, three relationships comprise over $14.1
million, or 72% of the total. Nonperforming loans represented
2.45% of total loans at December 31, 2010 versus 2.69% at September
30, 2010 and 2.10% at December 31, 2009.
Nonperforming loans by segment at December 31, 2010 were as
follows (in millions):
|
Total portfolio |
Nonperforming |
% NPL |
Construction, Real Estate/Land Acquisition
& Development |
$ 190.3 |
$ 9.9 |
5.20% |
Commercial Real Estate – investor owned |
444.7 |
10.9 |
2.45% |
Commercial Real Estate – owner
occupied |
331.6 |
2.0 |
0.60% |
Residential Real Estate |
189.5 |
12.3 |
6.49% |
Commercial & Industrial |
593.9 |
11.3 |
1.90% |
Consumer & Other |
16.4 |
-- |
0.00% |
Portfolio loans covered under FDIC loss
share |
126.7 |
-- |
0.00% |
Total |
$ 1,893.1 |
$ 46.4 |
2.45% |
Loans that were 30-89 days delinquent at December 31, 2010
represented 0.13% of the portfolio compared with 0.09% at September
30, 2010.
Other real estate at December 31, 2010 was $36.2 million,
compared to $34.7 million at September 30, 2010 and $25.1 million
at December 31, 2009. Other real estate covered by FDIC loss
share agreements increased by $3.1 million. Approximately 30%
of total other real estate, or $10.8 million, is covered by two
FDIC loss share agreements. Other real estate not covered by
an FDIC loss share agreement totaled $25.4 million at December 31,
2010, a decrease of $1.6 million from September 30, 2010.
During the fourth quarter, the Company sold $9.7 million in
other real estate, recording a loss of $355,000. During 2010,
the Company sold $26.0 million in other real estate at a net gain
of $79,000.
Net charge-offs in the fourth quarter of 2010 were $7.6 million,
or 1.57% of average loans. By comparison, net charge-offs were
$5.9 million, or 1.23% of average loans, in the linked third
quarter. For the year, net charge-offs were $34.0 million, or
1.83% of average loans.
Provision for loan losses was $3.3 million in the fourth quarter
of 2010 compared to $7.7 million in the third quarter of 2010 and
$8.4 million in the fourth quarter of 2009. The decrease in
provision for loan losses in the fourth quarter was primarily due
to lower levels of risk rating downgrades. Excluding the loans
under FDIC loss share agreements, the Company's watch list credits
as a percentage of total loans have declined slightly since year
end 2009.
The Company's allowance for loan losses was 2.26% of total loans
at December 31, 2010, representing 92% of nonperforming
loans. The loan loss allowance was 2.43% at September 30, 2010
representing 90% of nonperforming loans and 2.35% at December 31,
2009 representing 112% of nonperforming loans.
Net Interest Income
Net interest income for the banking segment increased $8.8
million, or 45%, in the fourth quarter of 2010 compared to the same
period of 2009 and was $2.2 million, or 8.6%, higher than in the
linked third quarter. For the full year, net interest income
for the banking segment increased $18.5 million, or 25%, over
2009.
Loans covered under FDIC loss share yielded 20.6% in
2010. This yield benefited from cash flows on covered assets
that exceeded expectations.
Including the effect of parent company debt, the net interest
rate margin was 4.44% for the fourth quarter of 2010, compared to
4.31% for the third quarter of 2010 and 3.15% in the fourth quarter
of 2009. Absent the purchased Home National loans, the fourth
quarter net interest rate margin would have been 3.50%, a 0.17%
decline from the linked third quarter due to a less favorable
earning asset mix.
Wealth Management Segment
Fee income from the Wealth Management segment, including trust
revenues and income from state tax credit brokerage activities,
totaled $1.5 million in the fourth quarter of 2010, a 14.5%
increase from the prior linked quarter, and 42% higher than the
prior year period. For the year, fee income for the Wealth
Management segment totaled $7.7 million, representing a 38%
increase over 2009.
Trust
Trust revenues were $1.5 million in the fourth quarter of 2010,
a 14% increase over the linked quarter and a 51% increase over the
prior year period. For the year, trust revenues increased
$919,000, or 20%, over 2009. The increase in revenue was
attributable to higher account asset values, several estate
planning-related insurance sales and generally improving sales
momentum in the Trust organization.
Trust assets under administration were $1.5 billion at December
31, 2010, compared to $1.4 billion at September 30, 2010 and $1.3
billion at December 31, 2009.
State Tax Credit Brokerage
Including the impact of fair value marks on tax credit assets
and related interest rate hedges, revenue from state tax credit
brokerage activities was near breakeven for the fourth quarter of
2010, compared to $884,000 for the third quarter of 2010 and
$62,000 in the fourth quarter of 2009. Tax credit sales in the
fourth quarter of 2010 were lower than expected due to the timing
of customer purchases. For the year, revenue from state tax
credit brokerage activities was $2.3 million, a $1.2 million, or
117% increase over 2009.
Other Business Results
Total capital to risk-weighted assets was 14.30% at December 31,
2010 compared to 13.32% at December 31, 2009. The tangible
common equity ratio was 5.26% at December 31, 2010 versus 5.44% at
December 31, 2009. The decline in the tangible common equity
ratio was primarily due to increased assets resulting from the $319
million increase in deposits. The effect of the anticipated
asset increase of Legacy on our tangible common equity ratio is
expected to be offset by our first quarter seasonal deposit
runoff. 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 and
is not part of the regulatory capital requirements to which the
Company is subject.
Other Income in 2010 was $3.1 million, or 220% higher than
2009. The increase in Other Income was due to $1.7 million of
accretion on the FDIC indemnification asset, $776,000 of income on
bank-owned life insurance policies and $524,000 related to two
interest rate swaps terminated by the Company in 2009.
For the fourth quarter of 2010, noninterest expenses increased
$4.9 million, or 36%, compared to the prior year period. The
increase was primarily attributable to $900,000 in salaries and
benefits, largely due to the recruitment of several senior bankers,
higher variable compensation accruals, and staff additions to
support our Arizona acquisition activity, $3.0 million in loan
legal and other real estate expenses including $2.4 million of
writedowns in other real estate, and the $750,000 accrual for a
potential fraud loss on a depository account. Noninterest
expenses were $3.2 million, or 20.8%, higher on a linked quarter
basis. The increase primarily consists of various expenses
including $1.6 million of loan legal and other real estate
expenses, along with semi-annual director compensation payments,
the fraud accrual and the reserve for unfunded
commitments. Excluding the goodwill impairment charge in 2009,
for the year, noninterest expenses increased $8.9 million, or 16.7%
over 2009. Salaries and benefits rose $2.5 million, or 9.8%,
year-over-year, while loan legal and other real estate expenses
increased $5.2 million, year over year.
The Company's efficiency ratio was 61.6% for the quarter ended
December 31, 2010 compared to 62.0% for the prior year
period. Excluding the goodwill impairment charge in 2009, the
Company's efficiency ratio for the full year of 2010 was 57.9%,
compared to 59.3% in 2009.
Enterprise Financial Services Corp operates commercial banking
and wealth management businesses in metropolitan St. Louis, Kansas
City, and Phoenix. The Company is primarily focused on serving
the needs of privately held businesses, their owner families,
executives and professionals.
Readers should note that in addition to the historical
information contained herein, 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" and "intend" 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, 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 Twelve Months
Ended |
|
|
|
|
|
INCOME STATEMENTS |
Dec 31, 2010 |
Dec 31, 2009 |
Dec 31, 2010 |
Dec 31, 2009 |
|
|
|
|
|
NET INTEREST INCOME |
|
|
|
|
Total interest income |
$ 34,433 |
$ 28,013 |
$ 120,450 |
$ 118,486 |
Total interest expense |
7,909 |
10,098 |
32,411 |
48,845 |
Net interest income |
26,524 |
17,915 |
88,039 |
69,641 |
Provision for loan losses |
3,325 |
8,400 |
33,735 |
40,412 |
Net interest income after provision for
loan losses |
23,199 |
9,515 |
54,304 |
29,229 |
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
Wealth Management revenue |
1,518 |
1,002 |
5,443 |
4,524 |
Deposit service charges |
1,145 |
1,221 |
4,739 |
5,012 |
Sale of other real estate |
(355) |
(579) |
79 |
(436) |
State tax credit activity, net |
(3) |
62 |
2,250 |
1,035 |
Sale of securities |
781 |
3 |
1,987 |
955 |
Gain on extinguishment of debt |
-- |
2,062 |
-- |
7,388 |
Other income |
740 |
454 |
4,476 |
1,399 |
Total noninterest income |
3,826 |
4,225 |
18,974 |
19,877 |
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
Salaries and benefits |
7,517 |
6,617 |
28,513 |
25,969 |
Occupancy |
1,126 |
1,189 |
4,297 |
4,709 |
Furniture and equipment |
357 |
360 |
1,393 |
1,425 |
Goodwill impairment charge |
-- |
-- |
-- |
45,377 |
Other |
9,678 |
5,566 |
27,734 |
20,947 |
Total noninterest expense |
18,678 |
13,732 |
61,937 |
98,427 |
|
|
|
|
|
Income (loss) from continuing operations
before income tax |
8,347 |
8 |
11,341 |
(49,321) |
Income tax expense (benefit) |
1,921 |
(372) |
2,221 |
(2,650) |
Income (loss) from continuing
operations |
6,426 |
380 |
9,120 |
(46,671) |
|
|
|
|
|
(Loss) income from discontinued operations
before income tax |
-- |
(315) |
-- |
(408) |
Loss on disposal before income tax |
-- |
(1,587) |
-- |
(1,587) |
Income tax benefit |
-- |
(668) |
-- |
(711) |
Loss from discontinued operations |
-- |
(1,234) |
-- |
(1,284) |
|
|
|
|
|
Net income (loss) |
6,426 |
(854) |
9,120 |
(47,955) |
Dividends on preferred stock |
(622) |
(608) |
(2,467) |
(2,414) |
Net income (loss) available to common
shareholders |
$ 5,804 |
$ (1,462) |
$ 6,653 |
$ (50,369) |
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share from
continuing operations |
$ 0.39 |
$ (0.02) |
$ 0.45 |
$ (3.82) |
Diluted earnings (loss) per share from
continuing operations |
0.38 |
(0.02) |
0.45 |
(3.82) |
Basic loss per share from discontinued
operations |
-- |
(0.10) |
-- |
(0.10) |
Diluted loss per share from discontinued
operations |
-- |
(0.10) |
-- |
(0.10) |
Basic earnings (loss) per share |
0.39 |
(0.12) |
0.45 |
(3.92) |
Diluted earnings (loss) per share |
0.38 |
(0.12) |
0.45 |
(3.92) |
|
|
|
|
|
Return on average assets |
0.87% |
(0.24%) |
0.27% |
(2.05%) |
Return on average common equity |
14.95% |
(4.25%) |
4.50% |
(34.51%) |
Efficiency ratio from continuing
operations |
61.55% |
62.02% |
57.88% |
109.95% |
Noninterest expense from continuing
operations to average assets |
2.80% |
2.26% |
2.52% |
4.00% |
|
|
|
|
|
YIELDS (fully tax
equivalent) |
|
|
|
|
Loans not covered under FDIC loss
share |
5.45% |
5.55% |
5.52% |
5.45% |
Loans covered under FDIC loss share |
24.82% |
3.05% |
20.60% |
3.05% |
Total portfolio loans |
6.75% |
5.54% |
6.11% |
5.45% |
Securities |
2.60% |
2.78% |
2.74% |
3.35% |
Federal funds sold |
0.26% |
0.20% |
0.30% |
0.22% |
Yield on earning assets |
5.75% |
4.89% |
5.37% |
5.15% |
Interest-bearing deposits |
1.21% |
1.72% |
1.36% |
1.94% |
Subordinated debt |
5.71% |
5.80% |
5.82% |
6.08% |
Borrowed funds |
2.32% |
3.19% |
2.46% |
3.49% |
Cost of paying liabilities |
1.49% |
2.06% |
1.66% |
2.41% |
Net interest spread |
4.26% |
2.83% |
3.71% |
2.74% |
Net interest rate margin |
4.44% |
3.15% |
3.94% |
3.06% |
|
|
ENTERPRISE FINANCIAL
SERVICES CORP |
|
CONSOLIDATED FINANCIAL
SUMMARY (cont.) |
|
(unaudited) |
|
|
|
|
|
|
|
(In thousands) |
At the Quarter
Ended |
|
|
|
|
|
|
BALANCE SHEETS |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Cash and due from banks |
$ 23,413 |
$ 21,125 |
$ 13,711 |
$ 13,548 |
$ 16,064 |
Federal funds sold |
3,153 |
1,599 |
30 |
2,199 |
7,472 |
Interest-bearing deposits |
268,853 |
35,588 |
66,347 |
125,822 |
83,430 |
Debt and equity investments |
373,824 |
274,855 |
273,021 |
280,329 |
295,650 |
Loans held for sale |
5,640 |
5,910 |
2,518 |
1,517 |
4,243 |
|
|
|
|
|
|
Portfolio loans not covered under FDIC loss
share |
1,766,351 |
1,796,637 |
1,760,461 |
1,786,097 |
1,818,481 |
Portfolio loans covered under FDIC loss
share |
126,711 |
134,207 |
11,776 |
13,127 |
13,644 |
Total portfolio loans |
1,893,062 |
1,930,844 |
1,772,237 |
1,799,224 |
1,832,125 |
Less allowance for loan losses |
42,759 |
46,999 |
45,258 |
44,079 |
42,995 |
Net loans |
1,850,303 |
1,883,845 |
1,726,979 |
1,755,145 |
1,789,130 |
|
|
|
|
|
|
Other real estate not covered under FDIC loss
share |
25,373 |
26,937 |
23,606 |
18,669 |
22,918 |
Other real estate covered under FDIC loss
share |
10,835 |
7,748 |
2,279 |
2,279 |
2,166 |
Premises and equipment, net |
20,499 |
21,024 |
21,169 |
21,697 |
22,301 |
State tax credits, held for sale |
61,148 |
61,007 |
60,134 |
52,067 |
51,258 |
FDIC loss share receivable |
88,292 |
88,676 |
5,922 |
10,563 |
10,368 |
Goodwill |
2,064 |
2,064 |
2,064 |
2,064 |
2,064 |
Core deposit intangible |
1,223 |
1,322 |
1,423 |
1,531 |
1,643 |
Assets held for sale |
-- |
-- |
-- |
-- |
4,000 |
Other assets |
71,220 |
72,544 |
73,526 |
73,975 |
52,948 |
Total assets |
$ 2,805,840 |
$ 2,504,244 |
$ 2,272,729 |
$ 2,361,405 |
$ 2,365,655 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
Noninterest-bearing deposits |
366,086 |
304,221 |
293,619 |
300,835 |
289,658 |
Interest-bearing deposits |
1,931,635 |
1,735,649 |
1,528,204 |
1,603,219 |
1,651,758 |
Total deposits |
2,297,721 |
2,039,870 |
1,821,823 |
1,904,054 |
1,941,416 |
Subordinated debentures |
85,081 |
85,081 |
85,081 |
85,081 |
85,081 |
FHLB advances |
107,300 |
122,300 |
123,100 |
128,100 |
128,100 |
Federal funds purchased |
-- |
5,000 |
-- |
-- |
-- |
Other borrowings |
119,333 |
58,196 |
56,681 |
60,438 |
39,338 |
Other liabilities |
13,057 |
13,217 |
9,172 |
8,498 |
7,808 |
Total liabilities |
2,622,492 |
2,323,664 |
2,095,857 |
2,186,171 |
2,201,743 |
Shareholders' equity |
183,348 |
180,580 |
176,872 |
175,234 |
163,912 |
Total liabilities and shareholders'
equity |
$ 2,805,840 |
$ 2,504,244 |
$ 2,272,729 |
$ 2,361,405 |
$ 2,365,655 |
|
ENTERPRISE FINANCIAL
SERVICES CORP |
CONSOLIDATED FINANCIAL
SUMMARY (cont.) |
(unaudited) |
|
|
|
|
|
|
(In thousands, except per share data) |
For the Quarter
Ended |
|
|
|
|
|
|
|
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
EARNINGS SUMMARY |
|
|
|
|
|
Net income (loss) from continuing
operations |
|
|
|
|
|
Net interest income |
$ 26,524 |
$ 24,290 |
$ 18,602 |
$ 18,623 |
$ 17,914 |
Provision for loan losses |
3,325 |
7,650 |
8,960 |
13,800 |
8,400 |
Wealth Management revenue |
1,518 |
1,326 |
1,302 |
1,297 |
1,002 |
Noninterest income |
2,308 |
4,725 |
3,739 |
2,759 |
3,223 |
Noninterest expense |
18,678 |
15,458 |
14,146 |
13,655 |
13,731 |
Income (loss) before income tax |
8,347 |
7,233 |
537 |
(4,776) |
8 |
Net income (loss) from continuing
operations |
6,426 |
4,971 |
737 |
(3,014) |
380 |
|
|
|
|
|
|
Net loss from discontinued operations |
$ -- |
$ -- |
$ -- |
$ -- |
$ (1,234) |
Net income (loss) available to common
shareholders |
$ 5,804 |
$ 4,353 |
$ 122 |
$ (3,626) |
$ (1,462) |
Diluted earnings (loss) per common share |
$ 0.38 |
$ 0.29 |
$ 0.01 |
$ (0.25) |
$ (0.12) |
Return on average common equity |
14.95% |
11.61% |
0.34% |
(10.26%) |
(4.25%) |
Net interest rate margin (fully tax
equivalent) |
4.44% |
4.31% |
3.46% |
3.47% |
3.15% |
Efficiency ratio from continuing
operations |
61.55% |
50.95% |
59.84% |
60.21% |
62.02% |
|
|
|
|
|
|
MARKET DATA |
|
|
|
|
|
Book value per common share |
$ 10.13 |
$ 9.98 |
$ 9.74 |
$ 9.65 |
$ 10.25 |
Tangible book value per common share |
$ 9.91 |
$ 9.75 |
$ 9.51 |
$ 9.40 |
$ 9.97 |
Market value per share |
$ 10.46 |
$ 9.30 |
$ 9.64 |
$ 11.06 |
$ 7.71 |
Period end common shares outstanding |
14,889 |
14,854 |
14,854 |
14,852 |
12,883 |
Average basic common shares |
14,856 |
14,854 |
14,854 |
14,418 |
12,835 |
Average diluted common shares |
16,296 |
16,293 |
14,855 |
14,418 |
12,835 |
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
Net charge-offs |
$ 7,564 |
$ 5,909 |
$ 7,781 |
$ 12,716 |
$ 9,041 |
Nonperforming loans |
$ 46,357 |
$ 51,955 |
$ 46,550 |
$ 55,785 |
$ 38,540 |
Nonperforming loans to total loans |
2.45% |
2.69% |
2.63% |
3.10% |
2.10% |
Nonperforming assets to total assets* |
2.59% |
3.18% |
3.12% |
3.19% |
2.60% |
Allowance for loan losses to total loans |
2.26% |
2.43% |
2.55% |
2.45% |
2.35% |
Net charge-offs to average loans
(annualized) |
1.57% |
1.23% |
1.76% |
2.83% |
1.90% |
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
Average common equity to average assets |
5.83% |
5.96% |
6.18% |
6.14% |
5.67% |
Tier 1 capital to risk-weighted assets |
11.97% |
11.80% |
11.93% |
11.78% |
10.67% |
Total capital to risk-weighted assets |
14.30% |
14.19% |
14.41% |
14.29% |
13.32% |
Tangible common equity to tangible
assets |
5.26% |
5.79% |
6.22% |
5.92% |
5.44% |
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
Portfolio loans not covered under FDIC loss
share |
$ 1,780,890 |
$ 1,764,289 |
$ 1,762,250 |
$ 1,807,255 |
$ 1,882,675 |
Portfolio loans covered under FDIC loss
share |
128,412 |
135,204 |
12,313 |
13,012 |
4,936 |
Earning assets |
2,394,683 |
2,260,308 |
2,186,375 |
2,206,302 |
2,295,474 |
Total assets |
2,644,952 |
2,494,148 |
2,342,523 |
2,336,788 |
2,406,403 |
Deposits |
2,169,853 |
2,008,720 |
1,889,947 |
1,895,937 |
1,926,800 |
Shareholders' equity |
186,453 |
180,984 |
176,785 |
175,223 |
168,143 |
|
|
|
|
|
|
LOAN PORTFOLIO |
|
|
|
|
|
Commercial and industrial |
$ 593,938 |
$ 592,554 |
$ 545,177 |
$ 551,351 |
$ 553,988 |
Commercial real estate |
776,268 |
792,510 |
793,869 |
799,846 |
817,332 |
Construction real estate |
190,285 |
201,298 |
205,501 |
213,253 |
221,397 |
Residential real estate |
189,484 |
195,762 |
198,096 |
204,544 |
209,743 |
Consumer and other |
16,376 |
14,513 |
17,818 |
17,103 |
16,021 |
Portfolio loans covered under FDIC loss
share |
126,711 |
134,207 |
11,776 |
13,127 |
13,644 |
Total loan portfolio |
$ 1,893,062 |
$ 1,930,844 |
$ 1,772,237 |
$ 1,799,224 |
$ 1,832,125 |
|
|
|
|
|
|
DEPOSIT PORTFOLIO |
|
|
|
|
|
Noninterest-bearing accounts |
$ 366,086 |
$ 304,221 |
$ 293,619 |
$ 300,835 |
$ 289,658 |
Interest-bearing transaction accounts |
204,687 |
187,426 |
198,747 |
203,006 |
142,061 |
Money market and savings accounts |
865,703 |
714,498 |
687,116 |
640,504 |
699,374 |
Certificates of deposit |
861,245 |
833,725 |
642,341 |
759,709 |
810,323 |
Total deposit portfolio |
$ 2,297,721 |
$ 2,039,870 |
$ 1,821,823 |
$ 1,904,054 |
$ 1,941,417 |
|
|
|
|
|
|
*Excludes ORE covered by FDIC
loss share agreements, except for their inclusion in total
assets. |
|
|
|
|
ENTERPRISE FINANCIAL
SERVICES CORP |
CONSOLIDATED FINANCIAL
SUMMARY (cont.) |
(unaudited) |
|
|
|
|
|
|
(In thousands, except per share data) |
For the Quarter
Ended |
|
|
|
|
|
|
|
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
YIELDS (fully tax
equivalent) |
|
|
|
|
|
Loans not covered under FDIC loss share |
5.45% |
5.49% |
5.56% |
5.59% |
5.55% |
Loans covered under FDIC loss share |
24.82% |
17.48% |
14.48% |
16.94% |
3.05% |
Total portfolio loans |
6.75% |
6.34% |
5.62% |
5.67% |
5.54% |
Securities |
2.60% |
2.75% |
2.85% |
2.76% |
2.78% |
Federal funds sold |
0.26% |
0.30% |
0.31% |
0.36% |
0.20% |
Yield on earning assets |
5.75% |
5.67% |
4.95% |
5.06% |
4.89% |
Interest-bearing deposits |
1.21% |
1.24% |
1.44% |
1.56% |
1.72% |
Subordinated debt |
5.71% |
5.88% |
5.84% |
5.86% |
5.80% |
Borrowed funds |
2.32% |
2.29% |
2.55% |
2.74% |
3.19% |
Cost of paying liabilities |
1.49% |
1.54% |
1.75% |
1.87% |
2.06% |
Net interest spread |
4.26% |
4.13% |
3.20% |
3.18% |
2.83% |
Net interest rate margin |
4.44% |
4.31% |
3.46% |
3.47% |
3.15% |
|
|
|
|
|
|
WEALTH MANAGEMENT |
|
|
|
|
|
Trust Assets under management |
$ 812,104 |
$ 741,929 |
$ 722,895 |
$ 773,069 |
$ 750,755 |
Trust Assets under administration |
1,498,987 |
1,371,214 |
1,230,827 |
1,320,714 |
1,279,971 |
|
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) |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Pre-tax income (loss) from continuing
operations |
$ 8,347 |
$ 7,233 |
$ 537 |
$ (4,776) |
$ 8 |
Goodwill impairment charge |
-- |
-- |
-- |
-- |
-- |
Sales and fair value writedowns of other
real estate |
2,683 |
1,606 |
678 |
586 |
1,166 |
Sale of securities |
(781) |
(124) |
(525) |
(557) |
(3) |
Gain on extinguishment of debt |
-- |
-- |
-- |
-- |
(2,062) |
Income (loss) before income tax |
10,249 |
8,715 |
690 |
(4,747) |
(891) |
Provision for loan losses |
3,325 |
7,650 |
8,960 |
13,800 |
8,400 |
Pre-tax, pre-provision income from continuing
operations |
$ 13,574 |
$ 16,365 |
$ 9,650 |
$ 9,053 |
$ 7,509 |
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE
ASSETS |
|
|
|
|
|
|
|
For the Quarter
Ended |
|
|
|
|
|
|
(In thousands) |
Dec 31, 2010 |
Sep 30, 2010 |
Jun 30, 2010 |
Mar 31, 2010 |
Dec 31, 2009 |
Shareholders' equity |
$ 183,348 |
$ 180,580 |
$ 176,872 |
$ 175,234 |
$ 163,912 |
Less: Preferred stock |
(32,519) |
(32,334) |
(32,153) |
(31,976) |
(31,802) |
Less: Goodwill |
(2,064) |
(2,064) |
(2,064) |
(2,064) |
(2,064) |
Less: Intangible assets |
(1,223) |
(1,322) |
(1,423) |
(1,531) |
(1,643) |
Tangible common equity |
$ 147,542 |
$ 144,860 |
$ 141,232 |
$ 139,663 |
$ 128,403 |
|
|
|
|
|
|
Total assets |
$ 2,805,840 |
$ 2,504,244 |
$ 2,272,729 |
$ 2,361,405 |
$ 2,365,655 |
Less: Goodwill |
(2,064) |
(2,064) |
(2,064) |
(2,064) |
(2,064) |
Less: Intangible assets |
(1,223) |
(1,322) |
(1,423) |
(1,531) |
(1,643) |
Tangible assets |
$ 2,802,554 |
$ 2,500,858 |
$ 2,269,242 |
$ 2,357,810 |
$ 2,361,948 |
|
|
|
|
|
|
Tangible common equity to tangible
assets |
5.26% |
5.79% |
6.22% |
5.92% |
5.44% |
CONTACT: Jerry Mueller, Senior Vice President (314) 512-7251
Ann Marie Mayuga, AMM Communications (314) 485-9499
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