NASDAQ$EFSC

Enterprise Financial Services Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported record net income and strong pre-provision net revenue return on average assets, driven by successful navigation of pandemic challenges and the integration of Seacoast acquisition.

Enterprise Financial Services Corp reported a record net income of $38.4 million for the second quarter of 2021, a significant increase compared to both the linked quarter and the prior year quarter. The company successfully navigated pandemic-related challenges and completed the acquisition and integration of Seacoast, contributing to the strong financial performance. Core loan growth accelerated, fee income rebounded, and expenses were well-controlled.

  • Net income reached a record $38.4 million, or $1.23 per diluted share.
  • Net interest margin (tax equivalent) was 3.46%.
  • Loan growth, excluding PPP loan activity, was $278.5 million, or 17% annualized.
  • The company increased its dividend by 6% to $0.19 per share for the third quarter and repurchased 251,637 shares.

Headline financials

Total Revenue

$97.9M

Previous: $75.8M+29.2%
EPS (adj)

$1.23

Previous: $0.56+119.6%
ROAA

1.5%

Previous: 0.7%+108.3%
ROATCE

18.4%

No prior period
Nonperforming assets

0.4%

No prior period
TCE to TA

8.3%

No prior period
CET1 Capital Ratio

11.1%

Previous: 9.9%+12.0%
Total Capital Ratio

14.9%

Previous: 14.4%+3.5%
Tier 1 Capital Ratio

12.3%

No prior period
Capital Expenditures

-$847K

Previous: -$1.53M+44.7%
Free Cash Flow

$37.6M

Previous: $13.1M+186.7%
Net Income

$38.4M

Previous: $14.6M+162.4%
Operating Income

$78.8M

Previous: $55.9M+41.0%
Gross Profit

$97.9M

Previous: $75.8M+29.2%
Cash & Equivalents

$1.01B

Previous: $346M+191.3%
Total Assets

$10.3B

Previous: $8.36B+23.8%
Stock-Based Comp

$1.51M

Previous: $1.07M+41.1%

Revenue & EPS history

Enterprise Financial · Revenue · Quarterly

$97.9M

Q2 2021+29.2%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

The company announced the closing of the First Choice acquisition, expanding its commercial banking presence in California. Future prospects include an expanded footprint, a strengthening economy and customer base, and increased in-person collaboration.

Tailwinds

  • Expanded commercial banking presence in California.
  • Strengthening economy.
  • Growing customer base.
  • Increased in-person collaboration.
  • Successful navigation of pandemic challenges.

Headwinds

  • Potential failure to realize expected acquisition benefits.
  • Adverse regulatory conditions.
  • Reputational risks.
  • Diversion of management time on acquisition-related issues.
  • Uncertainty related to the COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.9%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+3.9%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+12.9%

Q2 2024

Best reaction

-7.5%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+3.2%+5.6%
Q4 2025+2.0%+2.6%+5.5%
Q3 2025-1.9%-4.6%+0.2%
Q2 2025-1.1%-0.5%+5.2%
Q1 2025+0.7%+2.5%+2.5%
Q4 2024+4.3%+4.0%+1.7%
Q3 2024-0.2%-2.7%+10.7%
Q2 2024+12.9%+13.7%+5.1%
Q1 2024-1.2%-2.2%-1.0%
Q4 2023-1.6%-1.6%-5.5%
Q3 2023-5.8%-3.0%+7.4%
Q2 2023-4.4%-3.2%-8.5%
Q1 2023-2.6%-1.3%-4.7%
Q4 2022+8.0%+6.5%+12.4%
Q3 2022+5.7%+10.7%+9.4%
Q2 2022+2.7%+9.8%+10.2%
Q1 2022-3.2%-5.5%-3.1%
Q4 2021+4.0%+4.4%+4.5%
Q3 2021-4.4%-2.9%+0.2%
Q2 2021+2.1%+5.0%+6.8%
Q1 2021-3.4%-2.0%-1.8%
Q4 2020+0.4%-5.1%+17.8%
Q3 2020-3.7%+0.7%+13.1%
Q2 2020+5.8%+3.6%+6.7%
Q1 2020-1.9%-0.0%-2.2%
Q4 2019-3.4%-5.7%-7.2%
Q3 2019+5.4%+6.4%+8.0%
Q2 2019+4.6%+7.3%-2.6%
Q1 2019-3.3%-2.8%-5.6%
Q4 2018+5.2%+12.5%+12.8%
Q3 2018-7.5%-10.4%-6.7%
Q2 2018+1.2%+1.5%+2.9%
Q1 2018+2.9%+5.2%+13.2%
Q4 2017+1.0%+2.0%+0.4%
Q3 2017+0.1%+3.5%+1.4%
Q2 2017-0.5%-1.9%-4.7%
Q1 2017+1.7%-0.4%-3.1%
Q4 2016+2.3%+9.2%+18.3%
Q3 2016-0.3%+0.9%+21.2%
Q2 2016+4.1%+3.9%+10.2%
Q1 2016+0.5%
Q4 2015+7.7%
Q3 2015+11.6%
Q2 2015+0.8%
Q1 2015+0.9%
Q4 2014+4.7%
Q3 2014+1.3%
Q2 2014-0.6%
Q1 2014-5.4%
Q4 2013-4.4%
Q3 2013+3.3%
Q2 2013+4.9%
Q1 2013+4.1%
Q4 2012-5.8%
Q3 2012+1.0%
Q2 2012-3.3%
Q1 2011+0.2%
Q4 2009+7.0%
Q4 2011+7.0%
Q1 2012+7.0%
Q3 2011-4.6%
Q3 2010-4.6%
Q2 2011+1.1%
Q2 2010+0.8%
Q1 2010-0.2%

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