Equibles

8-K

ENTERPRISE FINANCIAL SERVICES CORP (EFSC)

8-K 2022-01-24 For: 2022-01-24
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Added on April 09, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

January 24, 2022

ENTERPRISE FINANCIAL SERVICES CORP

(Exact name of registrant as specified in its charter)

Delaware 001-15373 43-1706259
(State or Other Jurisdiction <br>of Incorporation) (Commission <br>File Number) (IRS Employer <br>Identification No.) 150 N. Meramec Avenue, St. Louis, Missouri<br><br>(Address of principal executive offices) 63105<br><br>(Zip Code)
--- ---

Registrant's telephone number, including area code

(314) 725-5500

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share EFSC Nasdaq Global Select Market
Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A EFSCP Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On January 24, 2022, Enterprise Financial Services Corp (the "Company" or "EFSC") issued a press release announcing financial information for the quarter ended December 31, 2021. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

On January 25, 2022, at 10:00 a.m. Central time, the Company intends to hold a webcast to present information on its results of operations for the quarter ended December 31, 2021. The slide presentation which will accompany the webcast is furnished as Exhibit 99.2 and is incorporated herein by reference.

The press release, slide presentation and information contained therein and in this Item 2.02 shall not be deemed “filed” with the Securities and Exchange Commission.

Item 9.01 Financial Statements and Exhibits.

(d)     Exhibits.

Exhibit

Number    Description

99.1        Press Release dated January 24, 2022

99.2        Presentation to be conducted January 25, 2022

104        The cover page of this Current Report on Form 8-K, formatted in Inline XBRL

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ENTERPRISE FINANCIAL SERVICES CORP
Date: January 24, 2022 By: /s/ Troy R. Dumlao
Troy R. Dumlao
Senior Vice President and Chief Accounting Officer

Document

EXHIBIT 99.1

enterprisefinanciala.jpg

ENTERPRISE FINANCIAL REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS

Fourth Quarter Results

•Net income of $50.8 million, or $1.33 per diluted share

•Completed systems integration of First Choice Bancorp (“First Choice” or “FCBP”)

•Return on average assets (“ROAA”) of 1.52%; Pre-Provision Net Revenue (“PPNR”) ROAA1 of 1.89%

•Redeemed $50.0 million subordinated debentures, issued $75.0 million preferred stock, and repurchased 577,478 shares of common stock

2021 Results

•Closed the acquisition of First Choice, adding approximately $2.3 billion in assets and approximately $1.9 billion in both loans and deposits

•Net income of $133.1 million, or $3.86 per diluted share

•ROAA of 1.16%; PPNR ROAA1 of 1.81%

•Repurchased 1,299,527 shares and increased annual dividend 4%

St. Louis, Mo. January 24, 2022. Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”) reported net income of $50.8 million for the fourth quarter 2021, an increase of $36.9 million and $21.9 million compared to the linked third quarter (“linked quarter”) and prior year quarter, respectively. Earnings per diluted share (“EPS”) were $1.33 for the fourth quarter 2021, compared to $0.38 and $1.00 for the linked and prior year quarters, respectively.

Jim Lally, EFSC’s President and Chief Executive Officer, commented, “The success we had in 2021 is a testament to the strength of our strategically diversified revenue streams. We have structured our lending and deposit niches, geographic footprints, and fee-based sources to drive growth. These efforts resulted in a record fourth quarter in terms of both revenue and earnings, as well as a return on assets of 1.52%. With our variable-rate loan portfolio and strong noninterest-bearing deposit base, we believe we are well-positioned for the future, including for possible interest rate increases. As we move into 2022, we will leverage our guiding principles and continue to focus on creating profitable growth and increased shareholder value.”

The Company closed its acquisition of First Choice on July 21, 2021. The results of operations of First Choice are included in our consolidated results from this date forward and are excluded from preceding periods. Comparisons to the prior year are also impacted by the acquisition of Seacoast Commerce Banc Holdings (“Seacoast”), which closed in the fourth quarter 2020. The acquisition of First Choice in 2021 represents the fourth acquisition the Company has completed in the last five years.

Pretax income and earnings per share were impacted by the following items:

Quarter ended Year ended
Dec 31, 2021 Dec 31, 2021
($ in thousands, except per share data) Pretax income EPS Pretax income EPS
Merger-related expenses $ (2,320) $ (0.04) $ (22,082) $ (0.49)
FCBP CECL double count — — (25,353) (0.55)
Branch-closure expenses — — (3,441) (0.07)

Full-Year Highlights

For 2021, net income was $133.1 million, or $3.86 per diluted share, compared to $74.4 million, or $2.76 per diluted share, in 2020. PPNR1 for the current year was $207.5 million, compared to $161.5 million in 2020. In addition to organic growth, contributing to the PPNR increase in 2021 was a full year of Seacoast operations and a partial year of First Choice operations.

The Company strengthened its liquidity and capital position in the fourth quarter 2021 through the issuance of $75.0 million of noncumulative perpetual preferred stock and the redemption of $50.0 million of subordinated debentures issued in 2016 at 4.75%. In 2021, the Company returned $86.8 million to shareholders through dividends of $26.2 million, or $0.75 per share, and share repurchases of $60.6 million. In addition, the Company issued approximately 7.8 million shares of its common stock valued at $343.7 million to First Choice shareholders upon consummation of the acquisition.

Credit quality remained strong, with nonperforming assets declining to 0.23% of total assets, from 0.45% at the end of 2020. Net charge-offs were 0.14% of average loans in 2021, compared to 0.03% in 2020. The improvements in credit quality and economic forecasts resulted in the allowance for credit losses declining to 1.61% of total loans at the end of 2021, from 1.89% at the end of 2020. Excluding guaranteed portions of loans, which includes Paycheck Protection Program (“PPP”) loans, our coverage ratio was 1.84% and 2.31% at the end of 2021 and 2020, respectively. The provision for credit losses was $13.4 million in 2021, compared to $65.4 million in 2020. Acquisition-related provision expense of $25.4 million and $8.6 million in 2021 and 2020, respectively, was included in the provision for credit losses. This expense, commonly referred to as the “CECL double-count”, is recognized when a loan portfolio is acquired.

Noninterest income increased 24% in 2021, while expenses remained well-controlled with a core efficiency ratio2 of 51.61%, compared to 50.96% in 2020. The Company commenced the process in 2021 to close five branch locations in California and St. Louis. A lease and fixed asset impairment charge of $3.8 million was recognized, including $0.4 million reported in merger-related expenses. The Company expects to realize annual cost savings of approximately $2.3 million related to these closures.

1 PPNR and PPNR ROAA are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

2 Core efficiency ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Fourth Quarter Highlights

•Earnings - Net income in the fourth quarter 2021 was $50.8 million, an increase of $36.9 million compared to the linked quarter and an increase of $21.9 million from the prior year quarter. EPS was $1.33 per diluted share for the fourth quarter 2021, compared to $0.38 and $1.00 per diluted share for the linked and prior year

quarters, respectively. Merger and branch closure expenses totaled $2.3 million, $18.1 million, and $2.6 million in the current, linked and prior year quarters, respectively.

•Pre-provision net revenue - PPNR1 of $63.3 million in the fourth quarter 2021 increased $7.2 million and $15.8 million from the linked and prior year quarters, respectively.

•Net interest income and net interest margin (“NIM”) - Net interest income of $102.1 million for the fourth quarter 2021 increased $4.8 million and $24.6 million from the linked and prior year quarters, respectively. NIM was 3.32% for the fourth quarter 2021, compared to 3.40% and 3.66% for the linked and prior year quarters, respectively.

•Noninterest income - Noninterest income of $22.6 million for the fourth quarter 2021 increased $5.0 million and $4.1 million from the linked and prior year quarters, respectively.

•Loans - Total loans declined $98.9 million from the linked quarter to $9.0 billion as of December 31, 2021, primarily due to a $167.0 million decline in PPP loans. Average loans totaled $9.0 billion for the quarter ended December 31, 2021 compared to $8.7 billion and $6.8 billion for the linked and prior year quarters, respectively.

Quarter ended
($ in thousands, except per share data) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020
PPP loans outstanding, net of deferred fees $ 271,958 $ 438,959 $ 396,660 $ 737,660 $ 698,645
Average PPP loans outstanding, net 365,295 489,104 664,375 692,161 806,697
PPP average loan size 218 210 171 220 187
PPP interest and fee income 4,864 6,048 7,940 8,475 10,261
PPP deferred fees 4,215 7,428 12,243 16,676 11,304
PPP average yield 5.28 % 4.91 % 4.79 % 4.97 % 5.06 %
Quarter ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020
Financial Metrics: As Reported Excluding PPP* As Reported Excluding PPP* As Reported Excluding PPP* As Reported Excluding PPP* As Reported Excluding PPP*
EPS $ 1.33 $ 1.23 $ 0.38 $ 0.25 $ 1.23 $ 1.04 $ 0.96 $ 0.75 $ 1.00 $ 0.73
ROAA 1.52 % 1.45 % 0.45 % 0.31 % 1.50 % 1.35 % 1.22 % 1.03 % 1.26 % 1.01 %
PPNR ROAA* 1.89 % 1.80 % 1.81 % 1.68 % 1.85 % 1.65 % 1.66 % 1.41 % 2.07 % 1.78 %
Tangible common equity/tangible assets* 8.13 % 8.31 % 8.40 % 8.71 % 8.32 % 8.66 % 8.18 % 8.84 % 8.40 % 9.07 %
Leverage ratio 9.7 % 10.0 % 9.7 % 10.2 % 9.4 % 10.0 % 9.5 % 10.2 % 10.0 % 11.0 %
NIM 3.32 % 3.26 % 3.40 % 3.33 % 3.46 % 3.36 % 3.50 % 3.39 % 3.66 % 3.52 %
Allowance for credit losses/loans 1.61 % 1.84 % 1.67 % 1.94 % 1.77 % 2.09 % 1.80 % 2.22 % 1.89 % 2.31 %
* Non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables. Calculations not adjusted for increase in average deposits or increase in deposit expense, as applicable.

•Asset quality - The allowance for credit losses on loans to total loans was 1.61% at December 31, 2021, compared to 1.67% at September 30, 2021, and 1.89% at December 31, 2020. Nonperforming assets to total assets was 0.23% at December 31, 2021 compared to 0.35% and 0.45% at September 30, 2021 and December 31, 2020, respectively.

•Deposits - Total deposits increased $516.0 million from the linked quarter to $11.3 billion as of December 31, 2021. Average deposits totaled $11.2 billion for the quarter ended December 31, 2021 compared to $10.3 billion and $7.3 billion for the linked and prior year quarters, respectively. Noninterest deposit accounts represented 40.4% of total deposits at December 31, 2021, and the loan to deposit ratio was 79.5% at that date.

•Capital - Total shareholders’ equity was $1.5 billion and the tangible common equity to tangible assets ratio3 was 8.1% at December 31, 2021, compared to $1.4 billion and 8.4% at September 30, 2021. Shareholder’s equity increased in the fourth quarter 2021 from the issuance of $72.0 million of preferred stock, net of issuance costs, and net income of $50.8 million. These increases were offset by share repurchases of $27.5 million, dividends of $7.6 million, and a $1.1 million decline in accumulated comprehensive income. Enterprise Bank & Trust’s estimated regulatory capital ratios remain “well-capitalized,” with a common equity tier 1 ratio of 12.5% and a total risk-based capital ratio of 13.5% as of December 31, 2021. In addition, the consolidated Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.3% and 14.7%, respectively, at December 31, 2021.

The Company has 700,473 shares available for repurchase under the existing common stock repurchase authorization. The Company repurchased 577,478 shares totaling $27.5 million in the fourth quarter 2021 for an average price of $47.65. Total shares repurchased year-to-date total 1,299,527 at an average price of $46.62.

The Company’s Board of Directors declared a quarterly common stock dividend of $0.21 per common share, payable on March 31, 2022 to shareholders of record as of March 15, 2022. The Board of Directors also declared a cash dividend of $16.38888889 per share of Series A Preferred Stock (or $0.40972222 per depositary share) representing a 5% per annum rate for the period commencing (and including) November 17, 2021 to (but excluding) March 15, 2022. The dividend will be payable on March 15, 2022 to shareholders of record on February 28, 2022.

3 Tangible common equity to tangible assets ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Net Interest Income

Average Balance Sheet

The following tables present, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax equivalent basis.
September 30, 2021 December 31, 2020
( in thousands) Interest <br>Income/<br>Expense Average Yield/ Rate Average<br>Balance Interest<br>Income/<br>Expense Average Yield/ Rate Average<br>Balance Interest<br>Income/<br>Expense Average Yield/ Rate
Assets
Interest-earning assets:
Loans* 9,030,982 $ 98,412 4.32 % $ 8,666,353 $ 94,465 4.32 % $ 6,780,702 $ 76,044 4.46 %
Debt and equity investments* 10,146 2.30 1,594,938 9,583 2.38 1,395,806 8,986 2.56
Short-term investments 590 0.15 1,251,988 480 0.15 347,629 120 0.14
Total earning assets 109,148 3.50 11,513,279 104,528 3.60 8,524,137 85,150 3.97
Noninterest-earning assets 821,279 617,022
Total assets 13,267,193 $ 12,334,558 $ 9,141,159
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction accounts 2,383,059 $ 491 0.08 % $ 2,228,466 $ 459 0.08 % $ 1,584,369 $ 265 0.07 %
Money market accounts 1,412 0.20 2,675,405 1,294 0.19 2,175,111 1,016 0.19
Savings 64 0.03 747,927 61 0.03 620,248 46 0.03
Certificates of deposit 831 0.53 604,594 927 0.61 567,456 1,739 1.22
Total interest-bearing deposits 2,798 0.17 6,256,392 2,741 0.17 4,947,184 3,066 0.25
Subordinated debentures 2,439 5.64 204,011 2,855 5.55 203,564 2,824 5.52
FHLB advances 199 1.58 89,457 211 0.94 244,730 603 0.98
Securities sold under agreements to repurchase 60 0.10 216,403 58 0.11 231,836 64 0.11
Other borrowings 85 1.39 25,699 90 1.39 30,095 110 1.45
Total interest-bearing liabilities 5,581 0.31 6,791,962 5,955 0.35 5,657,409 6,667 0.47
Noninterest-bearing liabilities:
Demand deposits 4,040,761 2,363,890
Other liabilities 107,739 127,843
Total liabilities 10,940,462 8,149,142
Shareholders' equity 1,394,096 992,017
Total liabilities and shareholders' equity 13,267,193 $ 12,334,558 $ 9,141,159
Total net interest income $ 103,567 $ 98,573 $ 78,483
Net interest margin 3.32 % 3.40 % 3.66 %
* Non-taxable income is presented on a tax-equivalent basis using a 25.2% and 24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustments were 1.5 million for the three months ended December 31, 2021, 1.3 million for the three months ended September 30, 2021, and 1.0 million for the three months ended December 31, 2020.

All values are in US Dollars.

Net interest income for the fourth quarter 2021 increased $4.8 million to $102.1 million from $97.3 million in the linked quarter, and increased $24.6 million from the prior year period. NIM, on a tax equivalent basis, was 3.32% for the fourth quarter 2021, compared to 3.40% in the linked quarter, and 3.66% in the fourth quarter of 2020. The increase in net interest income from the linked quarter was primarily due to a full quarter of income on acquired First Choice assets, higher income from an expanded investment portfolio and lower interest expense from the redemption of the $50.0 million of subordinated debentures. PPP fee income of $4.9 million, $6.0 million and $10.3 million was included in net interest income for the current, linked and prior year quarters, respectively. The level of PPP income has declined each quarter in 2021 as the portfolio winds down.

NIM decreased 8 basis points from the linked quarter to 3.32% during the current quarter primarily due to a 10 basis point decrease in earning asset yields, offset by a four basis point decrease in the cost of interest-bearing liabilities. Average short-term investments, comprised primarily of interest-bearing cash accounts, increased $337.0 million to $1.6 billion for the fourth quarter 2021 and was the primary reason for the decline in earning asset yields. PPP income continued to benefit net interest income and margin in the fourth quarter 2021, but at a reduced level from both the linked and prior year quarters.

The Company has an asset-sensitive balance sheet, with 63% of loans tied to a variable rate index and 40.4% of the deposit portfolio in noninterest-bearing demand accounts. Approximately $3.2 billion of loans at December 31, 2021 had an interest rate floor and 95% of those loans were at the floor rate. The Company has hedged the majority of its variable rate debt and should not recognize a significant increase in interest expense on these borrowings if interest rates increase.

Loans

The following table presents total loans for the most recent five quarters.
September 30, 2021
( in thousands) FCBPa Legacy EFSCa Consolidated June 30, 2021 March 31, 2021 December 31, 2020b
C&I 1,538,155 $ 242,740 $ 1,215,338 $ 1,458,078 $ 1,116,229 $ 1,048,839 $ 1,103,060
CRE investor owned 553,490 1,381,794 1,935,284 1,467,243 1,491,244 1,420,905
CRE owner occupied 301,929 861,307 1,163,236 789,220 805,581 825,846
SBA loans* 160,833 1,038,925 1,199,758 1,010,727 941,075 895,930
Sponsor finance* — 454,431 454,431 463,744 394,207 396,487
Life insurance premium financing* — 572,492 572,492 564,366 543,084 534,092
Tax credits* — 462,168 462,168 423,258 387,968 382,602
SBA PPP loans 206,284 232,675 438,959 396,660 737,660 698,645
Residential real estate 226,321 293,538 519,859 302,007 299,517 318,091
Construction and land development 219,600 432,627 652,227 467,586 438,303 474,399
Other 32,547 227,544 260,091 225,227 201,303 174,878
Total Loans 9,017,642 $ 1,943,744 $ 7,172,839 $ 9,116,583 $ 7,226,267 $ 7,288,781 $ 7,224,935
Total loan yield % 4.32 % 4.35 % 4.35 % 4.46 %
Variable interest rate loans to total loans % 63 % 57 % 56 % 57 %
Certain prior period amounts have been reclassified among the categories to conform to the current period presentation.
*Specialty loan category
a Amounts reported are as of September 30, 2021 and are separately shown attributable to the FCBP loan portfolio acquired on July 21, 2021, and the Company’s pre-FCBP acquisition loan portfolio.
b 1.2 billion is attributable to the Seacoast loan portfolio acquired on November 12, 2020.

All values are in US Dollars.

Loans totaled $9.0 billion at December 31, 2021, decreasing $98.9 million compared to the linked quarter, primarily due to a decline in PPP loans of $167.0 million. Excluding PPP loans, loans increased $68.1 million, or 3.1%

annualized, from the linked quarter. A high level of paydowns muted loan originations in the fourth quarter. Year-over-year, loans grew $1.8 billion from $7.2 billion as of December 31, 2020 due to the First Choice acquisition, partially offset by a $426.7 million decline in PPP loans. Excluding PPP loans and the impact of our First Choice acquisition, loans increased $553.6 million, or 8.5%, from the prior year quarter. For the quarter ended December 31, 2021 average line draw utilization was 39.9% compared to 38.2% and 38.1% in 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.

Quarter ended
($ in thousands) December 31,<br>2021 September 30,<br>2021 June 30,<br>2021 March 31,<br>2021 December 31,<br>2020
Nonperforming loans* $ 28,024 $ 41,554 $ 42,252 $ 36,659 $ 38,507
Other real estate 3,493 3,493 3,612 6,164 5,330
Nonperforming assets* $ 31,517 $ 45,047 $ 45,864 $ 42,823 $ 43,837
Nonperforming loans to total loans 0.31 % 0.46 % 0.58 % 0.50 % 0.53 %
Nonperforming assets to total assets 0.23 % 0.35 % 0.44 % 0.42 % 0.45 %
Allowance for credit losses to total loans 1.61 % 1.67 % 1.77 % 1.80 % 1.89 %
Net charge-offs (recoveries) $ 3,263 $ 1,850 $ 869 $ 5,647 $ (612)
*Excludes government guaranteed balances.

Nonperforming assets decreased $13.5 million to $31.5 million at December 31, 2021 from $45.0 million at September 30, 2021. The decrease was primarily from principal payments and a $3.5 million charge-off on an agricultural loan that went on nonaccrual in a prior period.

The Company recorded a provision benefit of $3.7 million for the fourth quarter 2021, compared to a provision for credit losses of $19.7 million for the linked quarter and $9.5 million for the prior year quarter. The provision for credit losses for the linked and prior year quarters included the establishment of a reserve for the First Choice and Seacoast acquired loan portfolios of $25.4 million and $8.6 million, respectively.

Deposits

The following table presents total deposits for the most recent five quarters.
September 30, 2021
( in thousands) FCBPa Legacy EFSCa Consolidated June 30, 2021 March 31, 2021 December 31, 2020b
Noninterest-bearing accounts 4,578,436 $ 1,041,622 $ 3,334,091 $ 4,375,713 $ 3,111,581 $ 2,910,216 $ 2,711,828
Interest-bearing transaction accounts 317,301 1,936,338 2,253,639 2,013,129 1,990,308 1,768,497
Money market and savings accounts 370,179 3,201,073 3,571,252 3,000,460 3,093,569 2,954,969
Brokered certificates of deposit 78,714 50,209 128,923 50,209 50,209 50,209
Other certificates of deposit 51,832 446,416 498,248 464,125 471,142 499,886
Total deposit portfolio 11,343,799 $ 1,859,648 $ 8,968,127 $ 10,827,775 $ 8,639,504 $ 8,515,444 $ 7,985,389
Noninterest-bearing deposits to total deposits % 56.0 % 37.2 % 40.4 % 36.0 % 34.2 % 34.0 %
aAmounts reported are as of September 30, 2021 and are shown separately attributable to the FCBP deposit portfolio acquired on July 21, 2021, and the Company’s pre-FCBP acquisition deposit portfolio.
b 1.1 billion is attributable to the Seacoast deposit portfolio acquired on November 12, 2020.

All values are in US Dollars.

Total deposits at December 31, 2021 were $11.3 billion, an increase of $0.5 billion from September 30, 2021, and an increase of $3.4 billion from December 31, 2020. The increase from the linked quarter was primarily due to specialty deposits, which increased $350.7 million. The year-over-year increase was primarily due to the First Choice acquisition and the high level of liquidity in the economy.

Core deposits, defined as total deposits excluding time deposits, were $10.7 billion at December 31, 2021, an increase of $534.9 million from the linked quarter, and an increase of $3.3 billion from the prior year period. Noninterest-bearing deposits were $4.6 billion at December 31, 2021, and represented 40% of total deposits at that date. The total cost of deposits was 0.10% for the current quarter compared to 0.11% and 0.17% for the linked and prior year quarters, respectively.

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) December 31, 2021 September 30, 2021 Increase (decrease) December 31, 2020 Increase (decrease)
Deposit service charges $ 3,962 $ 4,520 $ (558) (12) % $ 3,160 $ 802 25 %
Wealth management revenue 2,687 2,573 114 4 % 2,449 238 10 %
Card services revenue 3,223 3,186 37 1 % 2,511 712 28 %
Tax credit income 4,374 3,325 1,049 32 % 4,048 326 8 %
Miscellaneous income 8,384 4,015 4,369 109 % 6,338 2,046 32 %
Total noninterest income $ 22,630 $ 17,619 $ 5,011 28 % $ 18,506 $ 4,124 22 %

Total noninterest income for the fourth quarter 2021 was $22.6 million, an increase of $5.0 million from the linked quarter and an increase of $4.1 million from the prior year quarter. The increase from the linked quarter was primarily due to seasonally strong tax credit activity and fees earned on community development investments. Deposit service

charges declined from the linked quarter primarily due to a fee waiver provided to First Choice customers during the core conversion process. Additionally, servicing income (included in miscellaneous income) declined $0.6 million from the linked quarter due to accelerated paydowns.

Noninterest Expenses

Noninterest expense was $63.7 million for the fourth quarter 2021, compared to $76.9 million for the linked quarter, and $51.1 million for the fourth quarter 2020. The decrease from the linked quarter was primarily due to a $15.8 million decrease in merger expenses and branch impairment charges. The increase from the prior year quarter is due to the acquisitions of First Choice and Seacoast, partially offset by swap termination charges of $3.2 million that were recognized in the fourth quarter 2020.

For the fourth quarter 2021, the Company’s efficiency ratio was 51.1% compared to 66.9% and 53.2% for the linked quarter and prior year quarter, respectively. The Company’s core efficiency ratio2 was 49.2% for the quarter ended December 31, 2021, compared to 51.3% for the linked quarter and 50.9% for the prior year quarter.

2 Core efficiency ratio is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Income Taxes

The Company’s effective tax rate was 21% for the fourth quarter of 2021, compared to 24% in the linked quarter and 18% in the prior year quarter. The Company’s blended tax rate increased to 25.2% in 2021 from 24.9%, in 2020 due to its expanded geographic footprint and the related state apportionment.

Capital

The following table presents various EFSC capital ratios:

Quarter ended
Percent December 31, 2021 September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020
Total risk-based capital to risk-weighted assets 14.7 % 14.5 % 14.9 % 15.1 % 14.9 %
Tier 1 capital to risk weighted assets 13.0 % 12.2 % 12.3 % 12.3 % 12.1 %
Common equity tier 1 capital to risk-weighted assets 11.3 % 11.2 % 11.1 % 11.0 % 10.9 %
Tangible common equity to tangible assets1 8.1 % 8.4 % 8.3 % 8.2 % 8.4 %

Total equity was $1.5 billion at December 31, 2021, an increase of $89.5 million from September 30, 2021. The Company issued and sold 3,000,000 depositary shares, each representing 1/40th interest in a share of 5% noncumulative, perpetual preferred stock totaling $72.0 million, net of issuance costs, in the fourth quarter 2021. The Company’s tangible common book value per share was $28.28, up 3.3% and 11.0% from the linked and prior year quarters, respectively.

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 tangible common equity, PPNR, PPNR ROAA, financial metrics adjusted for PPP impact, core efficiency ratio, and the tangible common equity ratio, 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, PPNR ROAA, financial metrics adjusted for PPP impact, core efficiency ratio, and the tangible common equity ratio, 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 Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as merger-related expenses, facilities charges, and the gain or 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 that the tangible common equity 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, January 25, 2022. During the call, management will review the fourth quarter and full year of 2021 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” beginning prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-888-394-8218 (Conference ID #6577620). A recorded replay of the conference call will be available on the website two hours after the call’s completion. Visit https://bit.ly/EFSC4Q2021 and register to receive a dial-in number, passcode, and pin number. The replay will be available for approximately two weeks following the conference call.

About Enterprise Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $13.5 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, 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, yields and returns, loan diversification and credit management, shareholder value creation and the impact of the First Choice acquisition 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 the Company’s filings with the Securities and Exchange Commission (the “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 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.

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, Executive Vice President and CFO (314) 512-7233

Media: Steve Richardson, SVP Corporate Communications (314) 995-5695

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited)

Quarter ended Year ended
($ in thousands, except per share data) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020 Dec 31,<br>2021 Dec 31,<br>2020
EARNINGS SUMMARY
Net interest income $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 360,194 $ 270,001
Provision (benefit) for credit losses (3,660) 19,668 (2,669) 46 9,463 13,385 65,398
Noninterest income 22,630 17,619 16,204 11,290 18,506 67,743 54,503
Noninterest expense 63,694 76,885 52,456 52,884 51,050 245,919 167,159
Income before income tax expense 64,656 18,339 48,155 37,483 35,439 168,633 91,947
Income tax expense 13,845 4,426 9,750 7,557 6,508 35,578 17,563
Net income $ 50,811 $ 13,913 $ 38,405 $ 29,926 $ 28,931 $ 133,055 $ 74,384
Diluted earnings per share $ 1.33 $ 0.38 $ 1.23 $ 0.96 $ 1.00 $ 3.86 $ 2.76
Return on average assets 1.52 % 0.45 % 1.50 % 1.22 % 1.26 % 1.16 % 0.90 %
Return on average common equity 13.81 % 3.96 % 13.79 % 11.07 % 11.60 % 10.49 % 8.24 %
Return on average tangible common equity 18.81 % 5.37 % 18.44 % 14.92 % 15.73 % 14.18 % 11.23 %
Net interest margin (tax equivalent) 3.32 % 3.40 % 3.46 % 3.50 % 3.66 % 3.41 % 3.56 %
Efficiency ratio 51.08 % 66.92 % 53.56 % 58.49 % 53.20 % 57.47 % 51.51 %
Core efficiency ratio1 49.22 % 51.30 % 51.86 % 55.02 % 50.93 % 51.61 % 50.96 %
Total loans $ 9,017,642 $ 9,116,583 $ 7,226,267 $ 7,288,781 $ 7,224,935
Total average loans $ 9,030,982 $ 8,666,353 $ 7,306,471 $ 7,192,776 $ 6,780,701 $ 8,055,873 $ 6,071,496
Total assets $ 13,537,358 $ 12,888,016 $ 10,346,993 $ 10,190,699 $ 9,751,571
Total average assets $ 13,267,193 $ 12,334,558 $ 10,281,344 $ 9,940,052 $ 9,141,159 $ 11,467,310 $ 8,253,913
Total deposits $ 11,343,799 $ 10,827,775 $ 8,639,504 $ 8,515,444 $ 7,985,389
Total average deposits $ 11,167,003 $ 10,297,153 $ 8,580,211 $ 8,207,379 $ 7,311,074 $ 9,573,056 $ 6,593,893
Period end common shares outstanding 37,820 38,372 31,185 31,259 31,210
Dividends per common share $ 0.20 $ 0.19 $ 0.18 $ 0.18 $ 0.18 $ 0.75 $ 0.72
Tangible book value per common share $ 28.28 $ 27.38 $ 26.85 $ 25.92 $ 25.48
Tangible common equity to tangible assets1 8.13 % 8.40 % 8.32 % 8.18 % 8.40 %
Total risk-based capital to risk-weighted assets 14.7 % 14.5 % 14.9 % 15.1 % 14.9 %
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended Year ended
($ in thousands, except per share data) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020 Dec 31,<br>2021 Dec 31,<br>2020
INCOME STATEMENTS
NET INTEREST INCOME
Total interest income $ 107,641 $ 103,228 $ 87,401 $ 84,960 $ 84,113 $ 383,230 $ 304,779
Total interest expense 5,581 5,955 5,663 5,837 6,667 23,036 34,778
Net interest income 102,060 97,273 81,738 79,123 77,446 360,194 270,001
Provision (benefit) for credit losses (3,660) 19,668 (2,669) 46 9,463 13,385 65,398
Net interest income after provision for credit losses 105,720 77,605 84,407 79,077 67,983 346,809 204,603
NONINTEREST INCOME
Deposit service charges 3,962 4,520 3,862 3,084 3,160 15,428 11,717
Wealth management revenue 2,687 2,573 2,516 2,483 2,449 10,259 9,732
Card services revenue 3,223 3,186 2,975 2,496 2,511 11,880 9,481
Tax credit income (expense) 4,374 3,325 1,370 (1,041) 4,048 8,028 6,611
Other income 8,384 4,015 5,481 4,268 6,338 22,148 16,962
Total noninterest income 22,630 17,619 16,204 11,290 18,506 67,743 54,503
NONINTEREST EXPENSE
Employee compensation and benefits 33,488 33,722 28,132 29,562 26,174 124,904 92,288
Occupancy 4,510 4,496 3,529 3,751 3,517 16,286 13,457
Branch-closure expenses — 3,441 — — — 3,441 —
Merger-related expenses 2,320 14,671 1,949 3,142 2,611 22,082 4,174
Other 23,376 20,555 18,846 16,429 18,748 79,206 57,240
Total noninterest expenses 63,694 76,885 52,456 52,884 51,050 245,919 167,159
Income before income tax expense 64,656 18,339 48,155 37,483 35,439 168,633 91,947
Income tax expense 13,845 4,426 9,750 7,557 6,508 35,578 17,563
Net income $ 50,811 $ 13,913 $ 38,405 $ 29,926 $ 28,931 $ 133,055 $ 74,384
Basic earnings per share $ 1.33 $ 0.38 $ 1.23 $ 0.96 $ 1.00 $ 3.86 $ 2.76
Diluted earnings per share $ 1.33 $ 0.38 $ 1.23 $ 0.96 $ 1.00 $ 3.86 $ 2.76

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended
($ in thousands) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020
BALANCE SHEETS
ASSETS
Cash and due from banks $ 209,177 $ 179,826 $ 126,789 $ 103,367 $ 99,760
Interest-earning deposits 1,819,508 1,216,470 889,960 788,464 445,569
Debt and equity investments 1,855,583 1,717,442 1,585,847 1,463,818 1,448,803
Loans held for sale 6,389 5,068 5,763 8,531 13,564
Loans 9,017,642 9,116,583 7,226,267 7,288,781 7,224,935
Allowance for credit losses on loans (145,041) (152,096) (128,185) (131,527) (136,671)
Total loans, net 8,872,601 8,964,487 7,098,082 7,157,254 7,088,264
Fixed assets, net 47,915 48,697 50,972 52,078 53,169
Goodwill 365,164 365,415 260,567 260,567 260,567
Intangible assets, net 22,286 23,777 20,358 21,670 23,084
Other assets 338,735 366,834 308,655 334,950 318,791
Total assets $ 13,537,358 $ 12,888,016 $ 10,346,993 $ 10,190,699 $ 9,751,571
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits $ 4,578,436 $ 4,375,713 $ 3,111,581 $ 2,910,216 $ 2,711,828
Interest-bearing deposits 6,765,363 6,452,062 5,527,923 5,605,228 5,273,561
Total deposits 11,343,799 10,827,775 8,639,504 8,515,444 7,985,389
Subordinated debentures 154,899 204,103 203,940 203,778 203,637
FHLB advances 50,000 50,000 50,000 50,000 50,000
Other borrowings 353,863 243,770 234,509 229,389 301,081
Other liabilities 105,681 122,733 100,739 99,591 132,489
Total liabilities 12,008,242 11,448,381 9,228,692 9,098,202 8,672,596
Shareholders’ equity:
Preferred stock 71,988 — — — —
Common stock 398 404 330 332 332
Treasury stock (73,528) (73,528) (73,528) (73,528) (73,528)
Additional paid in capital 1,018,799 1,031,146 688,945 698,005 697,839
Retained earnings 492,682 461,711 474,282 441,511 417,212
Accumulated other comprehensive income 18,777 19,902 28,272 26,177 37,120
Total shareholders’ equity 1,529,116 1,439,635 1,118,301 1,092,497 1,078,975
Total liabilities and shareholders’ equity $ 13,537,358 $ 12,888,016 $ 10,346,993 $ 10,190,699 $ 9,751,571

Average Balance Sheets

The following table presents, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax equivalent basis.
December 31, 2020
( in thousands) Interest <br>Income/<br>Expense Average Yield/ Rate Average<br>Balance Interest<br>Income/<br>Expense Average Yield/ Rate
Assets
Interest-earning assets:
Loans* 8,055,873 $ 349,112 4.33 % $ 6,071,496 $ 270,673 4.46 %
Debt and equity investments* 37,773 2.41 1,366,601 36,675 2.68
Short-term investments 1,496 0.14 228,760 620 0.27
Total earning assets 388,381 3.63 7,666,857 307,968 4.02
Noninterest-earning assets 587,057
Total assets 11,467,310 $ 8,253,914
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction accounts 2,122,752 $ 1,614 0.08 % $ 1,494,364 $ 2,101 0.14 %
Money market accounts 4,669 0.18 1,977,826 7,754 0.39
Savings 225 0.03 589,832 279 0.05
Certificates of deposit 4,160 0.73 676,889 10,915 1.61
Total interest-bearing deposits 10,668 0.18 4,738,911 21,049 0.44
Subordinated debentures 10,960 5.60 179,534 9,885 5.51
FHLB advances 803 1.34 241,635 2,673 1.11
Securities sold under agreements to repurchase 235 0.10 206,338 542 0.26
Other borrowings 370 1.40 32,147 629 1.96
Total interest-bearing liabilities 23,036 0.36 5,398,565 34,778 0.64
Noninterest-bearing liabilities:
Demand deposits 1,854,982
Other liabilities 97,492
Total liabilities 7,351,039
Shareholders’ equity 902,875
Total liabilities and shareholders’ equity 11,467,310 $ 8,253,914
Total net interest income $ 365,345 $ 273,190
Net interest margin 3.41 % 3.56 %
* Non-taxable income is presented on a tax-equivalent basis using a 25.2% and 24.7% tax rate in 2021 and 2020, respectively. The tax-equivalent adjustments were 5.2 million, and 3.2 million for the years ended December 31, 2021, and 2020, respectively.

All values are in US Dollars.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended
($ in thousands) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020
LOAN PORTFOLIO
Commercial and industrial $ 3,392,375 $ 3,379,171 $ 2,930,805 $ 3,079,643 $ 3,088,995
Commercial real estate 4,176,928 4,179,712 3,200,748 3,186,970 3,087,827
Construction real estate 734,073 747,758 556,776 510,501 546,686
Residential real estate 454,052 542,690 305,497 303,047 319,179
Other 260,214 267,252 232,441 208,620 182,248
Total loans $ 9,017,642 $ 9,116,583 $ 7,226,267 $ 7,288,781 $ 7,224,935
DEPOSIT PORTFOLIO
Noninterest-bearing accounts $ 4,578,436 $ 4,375,713 $ 3,111,581 $ 2,910,216 $ 2,711,828
Interest-bearing transaction accounts 2,465,884 2,253,639 2,013,129 1,990,308 1,768,497
Money market and savings accounts 3,691,186 3,571,252 3,000,460 3,093,569 2,954,969
Brokered certificates of deposit 128,970 128,923 50,209 50,209 50,209
Other certificates of deposit 479,323 498,248 464,125 471,142 499,886
Total deposit portfolio $ 11,343,799 $ 10,827,775 $ 8,639,504 $ 8,515,444 $ 7,985,389
AVERAGE BALANCES
Total loans $ 9,030,982 $ 8,666,353 $ 7,306,471 $ 7,192,776 $ 6,780,701
Debt and equity investments 1,753,159 1,594,938 1,502,582 1,417,305 1,395,806
Interest-earning assets 12,373,149 11,513,279 9,615,981 9,289,741 8,524,136
Total assets 13,267,193 12,334,558 10,281,344 9,940,052 9,141,159
Deposits 11,167,003 10,297,153 8,580,211 8,207,379 7,311,074
Shareholders’ equity 1,495,396 1,394,096 1,116,969 1,096,481 992,017
Tangible common equity1 1,071,902 1,028,001 835,405 813,568 731,813
YIELDS (tax equivalent)
Total loans 4.32 % 4.32 % 4.35 % 4.35 % 4.46 %
Debt and equity investments 2.30 2.38 2.46 2.52 2.56
Interest-earning assets 3.50 3.60 3.70 3.76 3.97
Interest-bearing deposits 0.17 0.17 0.18 0.20 0.25
Total deposits 0.10 0.11 0.12 0.13 0.17
Subordinated debentures 5.64 5.55 5.60 5.61 5.52
FHLB advances and other borrowed funds 0.43 0.43 0.49 0.46 0.61
Interest-bearing liabilities 0.31 0.35 0.37 0.40 0.47
Net interest margin 3.32 3.40 3.46 3.50 3.66

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

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended
(in thousands, except per share data) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020
ASSET QUALITY
Net charge-offs (recoveries) $ 3,263 $ 1,850 $ 869 $ 5,647 $ (612)
Nonperforming loans 28,024 41,554 42,252 36,659 38,507
Classified assets 100,797 104,220 100,063 114,713 123,808
Nonperforming loans to total loans 0.31 % 0.46 % 0.58 % 0.50 % 0.53 %
Nonperforming assets to total assets 0.23 % 0.35 % 0.44 % 0.42 % 0.45 %
Allowance for credit losses to total loans 1.61 % 1.67 % 1.77 % 1.80 % 1.89 %
Allowance for credit losses to nonperforming loans 517.6 % 366.0 % 303.4 % 358.8 % 354.9 %
Net charge-offs (recoveries) to average loans (annualized) 0.14 % 0.08 % 0.05 % 0.32 % (0.04) %
WEALTH MANAGEMENT
Trust assets under management $ 2,083,543 $ 2,017,178 $ 1,945,293 $ 1,809,001 $ 1,783,089
Trust assets under administration 2,556,266 2,486,152 2,487,545 2,427,448 2,504,318
MARKET DATA
Book value per common share $ 38.53 $ 37.52 $ 35.86 $ 34.95 $ 34.57
Tangible book value per common share1 $ 28.28 $ 27.38 $ 26.85 $ 25.92 $ 25.48
Market value per share $ 47.09 $ 45.28 $ 46.39 $ 49.44 $ 34.95
Period end common shares outstanding 37,820 38,372 31,185 31,259 31,210
Average basic common shares 38,228 36,878 31,265 31,247 28,929
Average diluted common shares 38,311 36,946 31,312 31,306 28,968
CAPITAL
Total risk-based capital to risk-weighted assets 14.7 % 14.5 % 14.9 % 15.1 % 14.9 %
Tier 1 capital to risk-weighted assets 13.0 % 12.2 % 12.3 % 12.3 % 12.1 %
Common equity tier 1 capital to risk-weighted assets 11.3 % 11.2 % 11.1 % 11.0 % 10.9 %
Tangible common equity to tangible assets1 8.1 % 8.4 % 8.3 % 8.2 % 8.4 %
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

Quarter ended Year ended
($ in thousands, except per share data) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020 Dec 31,<br>2021 Dec 31,<br>2020
CORE PERFORMANCE MEASURES
Net interest income $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 360,194 $ 270,001
Less incremental accretion income — — — — 856 — 4,083
Core net interest income 102,060 97,273 81,738 79,123 76,590 360,194 265,918
Total noninterest income 22,630 17,619 16,204 11,290 18,506 67,743 54,503
Less gain on sale of investment securities — — — — — — 421
Less gain on sale of other real estate owned — 335 549 — — 884 —
Less other non-core income — — — — — — 265
Core noninterest income 22,630 17,284 15,655 11,290 18,506 66,859 53,817
Total core revenue 124,690 114,557 97,393 90,413 95,096 427,053 319,735
Total noninterest expense 63,694 76,885 52,456 52,884 51,050 245,919 167,159
Less other expenses related to non-core acquired loans — — — — 8 — 57
Less branch-closure expenses — 3,441 — — — 3,441 —
Less merger-related expenses 2,320 14,671 1,949 3,142 2,611 22,082 4,174
Core noninterest expense 61,374 58,773 50,507 49,742 48,431 220,396 162,928
Core efficiency ratio 49.22 % 51.30 % 51.86 % 55.02 % 50.93 % 51.61 % 50.96 % Quarter ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020
SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS
Shareholders’ equity $ 1,529,116 $ 1,439,635 $ 1,118,301 $ 1,092,497 $ 1,078,975
Less preferred stock 71,988 — — — —
Less goodwill 365,164 365,415 260,567 260,567 260,567
Less intangible assets 22,286 23,777 20,358 21,670 23,084
Tangible common equity $ 1,069,678 $ 1,050,443 $ 837,376 $ 810,260 $ 795,324
Total assets $ 13,537,358 $ 12,888,016 $ 10,346,993 $ 10,190,699 $ 9,751,571
Less goodwill 365,164 365,415 260,567 260,567 260,567
Less intangible assets 22,286 23,777 20,358 21,670 23,084
Tangible assets $ 13,149,908 $ 12,498,824 $ 10,066,068 $ 9,908,462 $ 9,467,920
Tangible common equity to tangible assets 8.13 % 8.40 % 8.32 % 8.18 % 8.40 %
Quarter ended
--- --- --- --- --- --- ---
($ in thousands) Dec 31,<br>2021 Sep 30,<br>2021 Dec 31,<br>2020
AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY
Average shareholder’s equity $ 1,495,396 $ 1,394,096 $ 992,017
Less average preferred stock 35,322 — —
Less average goodwill 365,164 342,622 237,639
Less average intangible assets 23,008 23,473 22,565
Average tangible common equity $ 1,071,902 $ 1,028,001 $ 731,813
Quarter Ended Year ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020 Dec 31,<br>2021 Dec 31,<br>2020
CALCULATION OF PRE-PROVISION NET REVENUE
Net interest income $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 360,194 $ 270,001
Noninterest income 22,630 17,619 16,204 11,290 18,506 67,742 54,503
Less noninterest expense 63,694 76,885 52,456 52,884 51,050 245,918 167,159
Branch-closure expenses — 3,441 — — — 3,441 —
Merger-related expenses 2,320 14,671 1,949 3,142 2,611 22,082 4,174
PPNR $ 63,316 $ 56,119 $ 47,435 $ 40,671 $ 47,513 $ 207,541 $ 161,519
Average assets $ 13,267,193 $ 12,334,558 $ 10,281,344 $ 9,940,052 $ 9,141,159 $ 11,467,310 $ 8,253,913
ROAA - GAAP net income 1.52 % 0.45 % 1.50 % 1.22 % 1.26 % 1.16 % 0.90 %
PPNR ROAA - PPNR 1.89 % 1.81 % 1.85 % 1.66 % 2.07 % 1.81 % 1.96 %
Quarter Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands, except per share data) Dec 31,<br>2021 Sep 30,<br>2021 Jun 30,<br>2021 Mar 31,<br>2021 Dec 31,<br>2020
IMPACT OF PAYCHECK PROTECTION PROGRAM
Net income - GAAP $ 50,811 $ 13,913 $ 38,405 $ 29,926 $ 28,931
PPP interest and fee income (4,864) (6,048) (7,940) (8,475) (10,261)
Related tax effect 1,226 1,506 1,977 2,110 2,534
Adjusted net income - Non-GAAP $ 47,173 $ 9,371 $ 32,442 $ 23,561 $ 21,204
Average diluted common shares 38,311 36,946 31,312 31,303 28,968
EPS - GAAP net income $ 1.33 $ 0.38 $ 1.23 $ 0.96 $ 1.00
EPS - Adjusted net income $ 1.23 $ 0.25 $ 1.04 $ 0.75 $ 0.73
Average assets - GAAP $ 13,267,193 $ 12,334,558 $ 10,281,344 $ 9,940,052 $ 9,141,159
Average PPP loans, net (365,295) (489,104) (664,375) (692,161) (806,697)
Adjusted average assets - Non-GAAP $ 12,901,898 $ 11,845,454 $ 9,616,969 $ 9,247,891 $ 8,334,462
ROAA - GAAP net income 1.52 % 0.45 % 1.50 % 1.22 % 1.26 %
ROAA - Adjusted net income, adjusted average assets 1.45 % 0.31 % 1.35 % 1.03 % 1.01 %
PPNR - Non-GAAP (see reconciliation above) $ 63,316 $ 56,119 $ 47,435 $ 40,671 $ 47,513
PPP interest and fee income (4,864) (6,048) (7,940) (8,475) (10,261)
Adjusted PPNR - Non-GAAP $ 58,452 $ 50,071 $ 39,495 $ 32,196 $ 37,252
PPNR ROAA - PPNR 1.89 % 1.81 % 1.85 % 1.66 % 2.07 %
PPNR ROAA - adjusted PPNR, adjusted average assets 1.80 % 1.68 % 1.65 % 1.41 % 1.78 %
Tangible assets - Non-GAAP (see reconciliation above) $ 13,149,908 $ 12,498,824 $ 10,066,068 $ 9,908,462 $ 9,467,920
PPP loans outstanding, net (271,958) (438,959) (396,660) (737,660) (698,645)
Adjusted tangible assets - Non-GAAP $ 12,877,950 $ 12,059,865 $ 9,669,408 $ 9,170,802 $ 8,769,275
Tangible common equity Non - GAAP (see reconciliation above) $ 1,069,678 $ 1,050,443 $ 837,376 $ 810,260 $ 795,324
Tangible common equity to tangible assets 8.13 % 8.40 % 8.32 % 8.18 % 8.40 %
Tangible common equity to tangible assets - adjusted tangible assets 8.31 % 8.71 % 8.66 % 8.84 % 9.07 %
Average assets for leverage ratio $ 12,915,944 $ 11,972,171 $ 10,021,240 $ 9,675,300 $ 8,868,548
Average PPP loans, net (365,295) (489,104) (664,375) (692,161) (806,697)
Adjusted average assets for leverage ratio - Non-GAAP $ 12,550,649 $ 11,483,067 $ 9,356,865 $ 8,983,139 $ 8,061,851
Tier 1 capital $ 1,257,462 $ 1,166,529 $ 937,840 $ 914,459 $ 889,527
Leverage ratio 9.7 % 9.7 % 9.4 % 9.5 % 10.0 %
Leverage ratio - adjusted average assets for leverage ratio 10.0 % 10.2 % 10.0 % 10.2 % 11.0 %
Net interest income - tax equivalent $ 103,567 $ 98,573 $ 82,962 $ 80,243 $ 78,483
PPP interest and fee income (4,864) (6,048) (7,940) (8,475) (10,261)
Adjusted net interest income - tax equivalent $ 98,703 $ 92,525 $ 75,022 $ 71,768 $ 68,222
Average earning assets -GAAP $ 12,373,149 $ 11,513,279 $ 9,615,981 $ 9,289,741 $ 8,524,136
Average PPP loans, net (365,295) (489,104) (664,375) (692,161) (806,697)
Adjusted average earning assets - Non-GAAP $ 12,007,854 $ 11,024,175 $ 8,951,606 $ 8,597,580 $ 7,717,439
Net interest margin - tax equivalent 3.32 % 3.40 % 3.46 % 3.50 % 3.66 %
Net interest margin - tax equivalent - adjusted net interest income, adjusted average earning assets 3.26 % 3.33 % 3.36 % 3.39 % 3.52 %
Loans - GAAP $ 9,017,642 $ 9,116,583 $ 7,226,267 $ 7,288,781 $ 7,224,935
PPP and other guaranteed loans, net (1,151,895) (1,277,452) (1,106,414) (1,377,302) (1,297,212)
Adjusted loans - Non-GAAP $ 7,865,747 $ 7,839,131 $ 6,119,853 $ 5,911,479 $ 5,927,723
Allowance for credit losses $ 145,041 $ 152,096 $ 128,185 $ 131,527 $ 136,671
Allowance for credit losses/loans - GAAP 1.61 % 1.67 % 1.77 % 1.80 % 1.89 %
Allowance for credit losses/loans - adjusted loans 1.84 % 1.94 % 2.09 % 2.22 % 2.31 %

20

q42021efscearningsreleas

Enterprise Financial Services Corp 2021 Fourth Quarter Earnings Webcast Exhibit 99.2

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. 2

Financial Highlights - 4Q21 Capital • 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 • 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 • Net Income $50.8 million; Earnings per Share $1.33; $1.37 adjusted EPS* for merger-related expenses • PPNR* $63.3 million • ROAA 1.52%; PPNR ROAA* 1.89% • ROATCE* 18.81% Earnings *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Loans & Deposits • Total Loans $9.0 billion • PPP Loans, $272 million, net of deferred fees • Loan/Deposits 79% • Total Deposits $11.3 billion • Noninterest-bearing Deposits/Total Deposits 40% Asset Quality • Nonperforming Assets/Assets 0.23% • Nonperforming Loans/Loans 0.31% • Allowance Coverage Ratio 1.61%; 1.84% adjusted for guaranteed loans including PPP Acquisitions • Completed acquisition of First Choice Bancorp on July 21, 2021 • Completed core systems integration of First Choice Bancorp on October 18, 2021 3

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 4

In Millions 25% Total Loan Growth PPP* $613 PPP $397 *Excludes Seacoast PPP loans of $86 million included in acquisition total. **Excludes First Choice PPP loans of $206 million included in acquisition total. Seacoast $1,224 First Choice $1,944 Total Loan Trends PPP** $233 PPP $738 PPP $272 5

Loan Details - LTM 4Q21 4Q20 LTM Change First Choice Net Organic Change C&I $ 1,538 $ 1,103 $ 435 $ 299 $ 136 CRE, Investor Owned 1,955 1,421 534 554 (20) CRE, Owner Occupied 1,113 826 287 291 (4) SBA loans*1 1,241 896 345 164 181 Sponsor Finance* 508 396 112 — 112 Life Insurance Premium Financing* 594 534 60 — 60 Tax Credits* 487 383 104 — 104 Residential Real Estate 431 318 113 152 (39) Construction and Land Development 626 474 152 174 (22) Other 253 175 78 32 46 Subtotal $ 8,746 $ 6,526 $ 2,220 $ 1,666 $ 554 SBA PPP loans 272 699 (427) 149 (576) Total Loans $ 9,018 $ 7,225 $ 1,793 $ 1,815 $ (22) *Specialty loan category. 1Includes $854 and $575 million of SBA guaranteed loans for 4Q21 and 4Q20, respectively. In Millions 6

Loan Details - QTR 4Q21 3Q21 QTR Change C&I $ 1,538 $ 1,458 $ 80 CRE, Investor Owned 1,955 1,935 20 CRE, Owner Occupied 1,113 1,163 (50) SBA loans*1 1,241 1,200 41 Sponsor Finance* 508 455 53 Life Insurance Premium Financing* 594 573 21 Tax Credits* 487 462 25 Residential Real Estate 431 520 (89) Construction and Land Development 626 652 (26) Other 253 260 (7) Subtotal $ 8,746 $ 8,678 $ 68 SBA PPP loans 272 439 (167) Total Loans $ 9,018 $ 9,117 $ (99) *Specialty loan category. 1Includes $854 million and $808 million of SBA guaranteed loans for 4Q21 and 3Q21, respectively. In Millions 7

Total Loans By Business Unit In Millions Note: Excludes PPP and Other loans **3Q21 includes First Choice acquisition *3Q21 includes acquired First Choice SBA loans 8

Specialty Deposits Community Associations $658 million in deposit accounts specifically designed to serve the needs of community associations. Property Management $444 million in deposits. Specializing in the compliance of Property Management Trust Accounts. Third-Party Escrow $441 million in deposits. Growing product line providing independent escrow services. Trust Services $81 million in deposit accounts. Providing services to nondepository trust companies. Specialty deposits of $2.2 billion represent 20% of total deposits. Includes high composition of noninterest-bearing deposits with a low cost of funds. Other $598 million in deposit accounts primarily related to Sponsor Finance and Life Insurance Premium Financing loans. 1Q21 2Q21 3Q21 4Q21 Community Assoc Property Mgmt Third- Party Escrow Trust Services Other $— $250 $500 $750 In Millions 9

Earnings Per Share Trend - 4Q21 Change in EPS 10

Net Interest Income Trend In Millions 32% NII Growth PPP Income $10.3 PPP Income $4.9 PPP Income $8.5 PPP Income $7.9 PPP Income $6.0 * First Choice acquisition completed 7/21/21. 11

Net Interest Margin Components of Interest-bearing LiabilitiesComponents of Interest-earning Assets 3Q21 3.40 % Cash/Liquidity (0.09) % Loans 0.03 % Investments (0.03) % Cost of Funds 0.01 % 4Q21 3.32 % Net Interest Margin Trend Net Interest Margin Bridge 12

Credit Trends for Loans 4Q21 3Q21 4Q20 NPAs/Assets 0.23% 0.35% 0.45% NPLs/Loans 0.31% 0.46% 0.53% ACL/NPLs 517.6% 366.0% 354.9% ACL/Loans** 1.84% 1.94% 2.31% Annualized Net Charge-offs (Recoveries) to Average Loans In Millions bps bps bps bps bps In Millions Loan Growth and Average Line of Credit Utilization* *Excludes acquisition of Seacoast for 4Q20 & First Choice for 3Q21 **Excludes guaranteed loans. *Excludes acquisition of Seacoast for 4Q20 and acquisition of First Choice for 3Q21 **Excludes guaranteed loans. 13

Allowance for Credit Losses for Loans In Thousands • New loans and changes in composition of existing loans • Changes in risk ratings, past due status and reserves on individually evaluated loans • Changes in macroeconomic and qualitative factors 4Q21 In Thousands Loans ACL ACL as a % of Loans Commercial and industrial $ 3,392,375 $ 63,825 1.88 % Commercial real estate 4,176,928 53,437 1.28 % Construction real estate 734,073 14,536 1.98 % Residential real estate 454,052 7,927 1.75 % Other 260,214 5,316 2.04 % Total $ 9,017,642 $ 145,041 1.61 % Reserves on sponsor finance, which is included in the categories above, represented $18.2 million. Total ACL percentage of loans excluding PPP and other government guaranteed loans was 1.84% Key Assumptions: • Reasonable and supportable forecast period is one year with a one year reversion period. • Forecast considers a weighted average of baseline, upside and downside scenarios. • Primary macroeconomic factors: ◦ Percentage change in GDP ◦ Unemployment ◦ Retail Sales ◦ CRE Index 14

Noninterest Income Trend Other Fee Income DetailFee Income In Millions 19.3% 12.5% 16.5% 15.3% 18.1% 15

Operating Expenses Trend Other Operating Expenses DetailOperating Expenses In Millions 50.9% 55.2% 51.9% 51.3% 49.2% 16

Capital *A Non-GAAP Measure, Refer to Appendix for Reconciliation. Excludes PPP loans. 8.0% 12.1% 12.3% 12.3% 12.2% EFSC Capital Strategy: Low Cost - Highly Flexible High Capital Retention Rate – Strong earnings profile – Sustainable dividend profile Supporting Robust Asset Growth – Organic loan and deposit growth – High quality M&A to enhance commercial franchise and geographic diversification Maintain High Quality Capital Stack – Minimize WACC over time (preferred, sub debt, etc.) – Optimize capital levels T1 Common ~10%, Tier 1 ~12%, and Total Capital ~14% – Redeemed $50MM subordinated debentures and issued $72.0 million, net, of 5% noncumulative perpetual preferred stock in 4Q21 Maintain 8-9% TCE – Common stock repurchases – 577,478 repurchased at average price of $47.65 in 4Q21; 1,299,527 repurchased at average price of $46.62 YTD 21 – M&A deal structures – Drives ROATCE above peer levels 13.0% 17

Appendix Fourth Quarter 2021 Earnings Webcast

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 tangible common equity, ROATCE, PPNR, PPNR ROAA, financial metrics adjusted for PPP impact, and the tangible common equity ratio, 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, ROATCE, PPNR, PPNR ROAA, financial metrics adjusted for PPP impact, and the tangible common equity ratio, 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 non-core acquired loans, which were acquired from the FDIC and previously covered by loss share agreements, and the related income and expenses, the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures include contractual interest on non-core acquired loans, but exclude incremental accretion on these loans. Core performance measures also exclude expenses directly related to non-core acquired loans. Core performance measures also exclude certain other income and expense items, such as merger related expenses, facilities charges, and the gain or 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 that the tangible common equity 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. 19

Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,529,116 $ 1,439,635 $ 1,118,301 $ 1,092,497 $ 1,078,975 Less preferred stock 71,988 — — — — Less goodwill 365,164 365,415 260,567 260,567 260,567 Less intangible assets 22,286 23,777 20,358 21,670 23,084 Tangible common equity $ 1,069,678 $ 1,050,443 $ 837,376 $ 810,260 $ 795,324 Total assets $ 13,537,358 $ 12,888,016 $ 10,346,993 $ 10,190,699 $ 9,751,571 Less goodwill 365,164 365,415 260,567 260,567 260,567 Less intangible assets 22,286 23,777 20,358 21,670 23,084 Tangible assets $ 13,149,908 $ 12,498,824 $ 10,066,068 $ 9,908,462 $ 9,467,920 Tangible common equity to tangible assets 8.13 % 8.40 % 8.32 % 8.18 % 8.40 % 20

Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 Noninterest income 22,630 17,619 16,204 11,290 18,506 Less noninterest expense 63,694 76,885 52,456 52,884 51,050 Branch-closure expenses — 3,441 — — — Merger-related expenses 2,320 14,671 1,949 3,142 2,611 PPNR $ 63,316 $ 56,119 $ 47,435 $ 40,671 $ 47,513 Average assets $ 13,267,193 $ 12,334,558 $ 10,281,344 $ 9,940,052 $ 9,141,159 ROAA - GAAP net income 1.52 % 0.45 % 1.50 % 1.22 % 1.26 % PPNR ROAA - PPNR 1.89 % 1.81 % 1.85 % 1.66 % 2.07 % Quarter ended ($ in thousands) Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 IMPACT OF PAYCHECK PROTECTION PROGRAM Tangible assets - Non-GAAP (see reconciliation above) $ 13,149,908 $ 12,498,824 $ 10,066,068 $ 9,908,462 $ 9,467,920 PPP loans outstanding, net (271,958) (438,959) (396,660) (737,660) (698,645) Adjusted tangible assets - Non-GAAP $ 12,877,950 $ 12,059,865 $ 9,669,408 $ 9,170,802 $ 8,769,275 Tangible common equity Non - GAAP (see reconciliation above) $ 1,069,678 $ 1,050,443 $ 837,376 $ 810,260 $ 795,324 Tangible common equity to tangible assets 8.13 % 8.40 % 8.32 % 8.18 % 8.40 % Tangible common equity to tangible assets - adjusted tangible assets 8.31 % 8.71 % 8.66 % 8.84 % 9.07 % AVERAGE SHAREHOLDERS’ EQUITY AND AVERAGE TANGIBLE COMMON EQUITY Average shareholder’s equity $ 1,495,396 Less average preferred stock 35,322 Less average goodwill 365,164 Less average intangible assets 23,008 Average tangible common equity $ 1,071,902 Return on average tangible common equity 18.81 % 21

Reconciliation of Non-GAAP Financial Measures Quarter ended Year ended ($ in thousands) Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020 CORE PERFORMANCE MEASURES Net interest income $ 102,060 $ 97,273 $ 81,738 $ 79,123 $ 77,446 $ 360,194 $ 270,001 Less incremental accretion income — — — — 856 — 4,083 Core net interest income 102,060 97,273 81,738 79,123 76,590 360,194 265,918 Total noninterest income 22,630 17,619 16,204 11,290 18,506 67,743 54,503 Less gain on sale of investment securities — — — — — — 421 Less gain on sale of other real estate owned — 335 549 — — 884 — Less other non-core income — — — — — — 265 Core noninterest income 22,630 17,284 15,655 11,290 18,506 66,859 53,817 Total core revenue 124,690 114,557 97,393 90,413 95,096 427,053 319,735 Total noninterest expense 63,694 76,885 52,456 52,884 51,050 245,919 167,159 Less other expenses related to non-core acquired loans — — — — 8 — 57 Less branch closure expenses — 3,441 — — — 3,441 — Less merger-related expenses 2,320 14,671 1,949 3,142 2,611 22,082 4,174 Core noninterest expense 61,374 58,773 50,507 49,742 48,431 220,396 162,928 Core efficiency ratio 49.22 % 51.30 % 51.86 % 55.02 % 50.93 % 51.61 % 50.96 % Quarter ended Year ended (in thousands, except per share data) Dec 31, 2021 Sep 30, 2021 Dec 31, 2021 Dec 31, 2020 IMPACT OF MERGER-RELATED EXPENSES Net income - GAAP $ 50,811 $ 13,913 $ 133,055 $ 74,384 Merger-related expenses 2,320 14,671 22,082 4,174 Branch-closure expenses — 3,441 3,441 — CECL double count — 25,353 25,353 8,557 Related tax effect (775) (10,340) (12,382) (2,734) Adjusted net income - Non-GAAP $ 52,356 $ 47,038 $ 171,549 $ 84,381 Average diluted common shares 38,311 36,946 34,496 26,989 EPS - GAAP net income $ 1.33 $ 0.38 $ 3.86 $ 2.76 EPS - Adjusted net income $ 1.37 $ 1.27 $ 4.97 $ 3.13 22

Q & A Fourth Quarter 2021 Earnings Webcast

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