Form 8-K - Current report

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)

July 24, 2023

ENTERPRISE FINANCIAL SERVICES CORP

(Exact name of registrant as specified in its charter)


Delaware	001-15373	43-1706259
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)


150 N. Meramec Avenue, St. Louis, Missouri (Address of principal executive offices)			63105 (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 July 24, 2023, Enterprise Financial Services Corp (the "Company" or "EFSC") issued a press release announcing financial information for the quarter ended June 30, 2023. A copy of the press release is furnished as Exhibit 99.1 and is incorporated herein by reference.

On July 25, 2023, 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 June 30, 2023. 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 July 24 , 2023.

99.2 Presentation to be conducted July 25, 2023.

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:

July 24, 2023

By:

/s/ Troy R. Dumlao

Troy R. Dumlao

Executive Vice President and Chief Accounting Officer

EXHIBIT 99.1

ENTERPRISE FINANCIAL REPORTS SECOND QUARTER 2023 RESULTS

Second Quarter Results

•Net income of $49.1 million, $1.29 per diluted common share

•Net interest margin of 4.49%, quarterly decrease of 22 basis points

•Net interest income of $140.7 million, quarterly increase of $1.2 million

•Total loans of $10.5 billion, quarterly increase of $500.7 million

•Total deposits of $11.6 billion, quarterly increase of $465.2 million

• Tangible common equity to tangible assets1 of 8.65%

St. Louis, Mo. July 24, 2023 – Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), said today upon the release of EFSC’s second quarter earnings, “I am pleased with our strong financial performance in the second quarter and our associates continued commitment to our customers and communities. We had significant loan growth across our geographic regions and business lines, building on the momentum from the first quarter. This increase in average loans has helped accelerate interest income to mitigate the effect of rising deposit interest expense. We remain focused on executing our strategic initiatives, including a focus on customer engagement and onboarding to support deposit growth and operational efficiencies.”

Highlights

•Earnings - Net income in the second quarter 2023 was $49.1 million, a decrease of $6.6 million, compared to the linked quarter and an increase of $4.0 million from the prior year quarter. Earnings per share (“EPS”) was $1.29 per diluted common share for the second quarter 2023, compared to $1.46 and $1.19 per diluted common share for the linked and prior year quarters, respectively.

•Pre-provision net revenue2 (“PPNR”) - PPNR of $68.9 million in the second quarter 2023 decreased $6.0 million from the linked quarter and increased $10.5 million from the prior year quarter.

•Net interest income and net interest margin (“NIM”) - Net interest income of $140.7 million for the second quarter 2023 increased $1.2 million and $31.1 million from the linked and prior year quarters, respectively. NIM was 4.49% for the second quarter 2023, compared to 4.71% and 3.55% for the linked and prior year quarters, respectively. Net interest income and NIM benefited from higher average loan and investment balances combined with expanding yields on earning assets. NIM decreased 22 basis points from the linked quarter, primarily due to the increase in deposit interest expense.

•Noninterest income - Noninterest income of $14.3 million for the second quarter 2023 decreased $2.6 million and increased $0.1 million from the linked quarter and the prior year quarter, respectively. The decline from the linked quarter was primarily due to decreases in tax credit income and in gains on the sale of investment securities and SBA loans.

1 Tangible common equity to tangible assets and return on tangible common equity are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

2 Pre-provision net revenue is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

•Noninterest expense - Noninterest expense of $86.0 million for the second quarter 2023 increased $5.0 million and $20.5 million from the linked quarter and the prior year quarter, respectively. The increase from both the linked and prior year quarters was primarily due to an increase in variable deposit costs and operational losses. An increase in employee compensation also contributed to the increase from the prior year quarter.

•Loans - Loans totaled $10.5 billion at June 30, 2023, an increase of $500.7 million, or 20.1% on an annualized basis, from the linked quarter and an increase of $1.2 billion from the prior year period. Average loans totaled $10.3 billion for the quarter ended June 30, 2023, compared to $9.8 billion and $9.1 billion for the linked and prior year quarters, respectively.

•Asset quality - The allowance for credit losses to total loans was 1.34% at June 30, 2023, compared to 1.38% at March 31, 2023 and 1.52% at June 30, 2022. Nonperforming assets to total assets was 0.12% at June 30, 2023, compared to 0.09% and 0.16% at March 31, 2023 and June 30, 2022, respectively. The provision for credit losses of $6.3 million recorded in the second quarter 2023 was primarily related to loan growth, net charge-offs and a change in economic factors.

•Deposits - Total deposits increased $465.2 million from the linked quarter to $11.6 billion as of June 30, 2023. Total estimated insured deposits, which includes collateralized deposits and accounts that qualify for pass through insurance, totaled $8.3 billion at June 30, 2023. Average deposits totaled $11.4 billion for the quarter ended June 30, 2023, compared to $10.9 billion and $11.5 billion for the linked and prior year quarters, respectively. At June 30, 2023, noninterest-bearing deposit accounts totaled $3.9 billion, or 33.4% of total deposits, and the loan to deposit ratio was 90.5%.

•Liquidity - The Company’s total available on- and off-balance-sheet liquidity was approximately $4.5 billion at June 30, 2023. On-balance-sheet liquidity consisted of cash of $322.0 million and unpledged investment securities with a fair value of $647.3 million at June 30, 2023. Off-balance-sheet liquidity consisted of $764.1 million available through the Federal Home Loan Bank, $2.6 billion through the Federal Reserve and $140.0 million through correspondent bank lines. The Company also has an unused $25.0 million revolving line of credit and maintains a shelf registration allowing for the issuance of various forms of equity and debt securities.

•Capital - Total shareholders’ equity was $1.6 billion and the tangible common equity to tangible assets ratio3 was 8.65% at June 30, 2023, compared to 8.81% at March 31, 2023. The tangible common equity to tangible assets ratio, adjusted for unrealized losses on held-to-maturity securities,3 was 8.25% at June 30, 2023 and 8.43% at March 31, 2023. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.0% and a total risk-based capital ratio of 13.0% as of June 30, 2023. The Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.1% and 14.1%, respectively, at June 30, 2023.

The Company’s Board of Directors approved a quarterly dividend of $0.25 per common share, payable on September 29, 2023 to shareholders of record as of September 15, 2023. The board of directors also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) June 15, 2023 to (but excluding) September 15, 2023. The dividend will be payable on September 15, 2023 to holders of record of Series A Preferred Stock as of August 31, 2023.

3 Tangible common equity to tangible assets ratio and the tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

Net Interest Income and NIM

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 average interest rates earned and paid, all on a tax-equivalent basis.


	Quarter ended
	June 30, 2023						March 31, 2023						June 30, 2022
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:



Loans1, 2	$	10,284,873	$	170,314	6.64	%	$	9,795,045	$	152,762	6.33	%	$	9,109,131	$	102,328	4.51	%


Securities2	2,297,995		17,550		3.06		2,288,451		17,117		3.03		2,068,119		12,944		2.51
Interest-earning deposits	173,785		2,095		4.84		106,254		1,195		4.56		1,401,961		2,496		0.71
Total interest-earning assets	12,756,653		189,959		5.97		12,189,750		171,074		5.69		12,579,211		117,768		3.76




Noninterest-earning assets	915,332						941,445						949,263

Total assets	$	13,671,985					$	13,131,195					$	13,528,474

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	2,509,805	$	10,120	1.62	%	$	2,201,910	$	5,907	1.09	%	$	2,329,431	$	659	0.11	%
Money market accounts	2,920,079		20,499		2.82		2,826,836		15,471		2.22		2,767,595		2,270		0.33
Savings accounts	686,973		227		0.13		732,256		230		0.13		854,860		70		0.03
Certificates of deposit	1,219,500		10,526		3.46		670,521		3,053		1.85		591,091		851		0.58
Total interest-bearing deposits	7,336,357		41,372		2.26		6,431,523		24,661		1.56		6,542,977		3,850		0.24
Subordinated debentures and notes	155,632		2,431		6.27		155,497		2,409		6.28		155,092		2,257		5.84
FHLB advances	98,912		1,279		5.19		110,928		1,332		4.87		50,000		197		1.58
Securities sold under agreements to repurchase	162,606		704		1.74		215,604		749		1.41		202,537		41		0.08
Other borrowings	133,770		1,419		4.25		53,885		353		2.66		21,413		111		2.08
Total interest-bearing liabilities	7,887,277		47,205		2.40		6,967,437		29,504		1.72		6,972,019		6,456		0.37

Noninterest-bearing liabilities:
Demand deposits	4,051,456						4,481,966						4,987,455
Other liabilities	111,915						113,341						94,733
Total liabilities	12,050,648						11,562,744						12,054,207
Shareholders' equity	1,621,337						1,568,451						1,474,267
Total liabilities and shareholders' equity	$	13,671,985					$	13,131,195					$	13,528,474






Total net interest income			$	142,754					$	141,570					$	111,312
Net interest margin					4.49	%					4.71	%					3.55	%

1 Average balances include nonaccrual loans. Interest income includes loan fees of $3.7 million, $3.7 million, and $4.2 million for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, respectively.
2 Non-taxable income is presented on a fully tax-equivalent basis using a 25.2% tax rate. The tax-equivalent adjustments were $2.1 million, $2.0 million, and $1.7 million for the three months ended June 30, 2023, March 31, 2023, and June 30, 2022, respectively.

Net interest income (on a tax equivalent basis) for the second quarter 2023 was $142.8 million, an increase of $1.2 million, compared to the linked quarter and an increase of $31.4 million from the prior year period. The increase from the linked and prior year quarters reflects the benefit of higher market interest rates on the Company’s asset sensitive balance sheet combined with organic growth.

Interest income increased $18.9 million during the second quarter 2023 primarily due to an increase of $17.6 million in loan interest income from continued loan growth and higher loan yields. Interest on loans benefited from a 31 basis point increase in yield and a $489.8 million increase in average loans, compared to the linked quarter. The average interest rate of new loan originations in the second quarter 2023 was 7.60%.

Interest expense increased $17.7 million in the second quarter 2023 primarily due to a $16.7 million increase in deposit interest expense and a $1.0 million increase in interest expense on other borrowings. The increase in deposit interest expense reflects a shift in the deposit mix from demand deposits and interest-bearing demand deposits to money market accounts and certificates of deposit, as well as higher rates paid on deposits. The average cost of interest-bearing deposits was 2.26%, an increase of 70 basis points over the linked quarter. The increase was primarily due to higher rates paid on certificates of deposit and commercial money market accounts, which increased 161 basis points and 60 basis points, respectively, in addition to a higher average certificate of deposit balance. The total cost of deposits, including noninterest-bearing demand accounts, was 1.46% during the second quarter 2023, compared to 0.92% in the linked quarter. The increase in interest expense on other borrowings was primarily from higher average borrowings to increase on-balance-sheet liquidity primarily due to the uncertain impact of the federal government debt ceiling debate.

NIM, on a tax equivalent basis, was 4.49% in the second quarter 2023, a decrease of 22 basis points from the linked quarter and an increase of 94 basis points from the prior year quarter. For the month of June 2023, the loan portfolio yield was 6.74% and the cost of total deposits was 1.60%.

Investments


	Quarter ended
	June 30, 2023				March 31, 2023				June 30, 2022
($ in thousands)	Carrying Value		Net Unrealized Loss		Carrying Value		Net Unrealized Loss		Carrying Value		Net Unrealized Loss
Available-for-sale (AFS)	$	1,550,375	$	(179,857)	$	1,555,109	$	(161,572)	$	1,493,277	$	(165,135)
Held-to-maturity (HTM)	723,959		(71,673)		720,694		(65,013)		617,767		(80,899)
Total	$	2,274,334	$	(251,530)	$	2,275,803	$	(226,585)	$	2,111,044	$	(246,034)

Investment securities totaled $2.3 billion at June 30, 2023, a decrease of $1.5 million from the linked quarter. The decrease was primarily due to an $18.3 million increase in the unrealized loss on available-for-sale securities due to a decline in longer-term rates in the quarter. The increase in the unrealized loss was partially offset by new investment purchases from the reinvestment of cash flows on the portfolio in the current quarter. Investment purchases in the second quarter 2023 had a weighted average, tax equivalent yield of 5.07%.

The average duration of the investment portfolio was 5.3 years at June 30, 2023. Due to the shorter average duration of the loan portfolio, of approximately 3 years, the Company leverages the investment portfolio to lengthen the overall duration of the balance sheet, primarily using high-quality municipal securities. The expected cash flow from pay downs, maturities and interest over the next 12 months is approximately $270 million. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities4 was 8.25% at June 30, 2023, compared to 8.43% at March 31, 2023.

4 The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

Loans

The following table presents total loans for the most recent five quarters:


	Quarter ended

($ in thousands)	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
C&I	$	2,029,370		$	2,005,539		$	1,904,654		$	1,780,677		$	1,641,740
CRE investor owned	2,290,701			2,239,932			2,176,424			2,106,458			1,977,806
CRE owner occupied	1,208,675			1,173,985			1,174,094			1,133,467			1,118,895
SBA loans*	1,327,667			1,315,732			1,312,378			1,269,065			1,284,279
Sponsor finance*	879,491			677,529			635,061			650,102			647,180
Life insurance premium financing*	912,274			859,910			817,115			779,606			748,376
Tax credits*	609,137			547,513			559,605			507,681			550,662
SBA PPP loans	5,173			5,438			7,272			13,165			49,175
Residential real estate	354,588			348,726			379,924			381,634			391,867
Construction and land development	599,375			590,509			534,753			513,452			626,577
Other	296,172			247,105			235,858			219,680			232,619
Total loans	$	10,512,623		$	10,011,918		$	9,737,138		$	9,354,987		$	9,269,176

Total loan yield	6.64		%	6.33		%	5.87		%	5.10		%	4.51		%

Variable interest rate loans to total loans	62		%	63		%	63		%	63		%	64		%


*Specialty loan category

Loans totaled $10.5 billion at June 30, 2023, increasing $500.7 million, compared to the linked quarter. The increase was broad based across geographic regions and lines of business, particularly within the sponsor finance specialty area. Average line utilization was approximately 45% for the second quarter 2023, compared to 42% and 44% for the linked and prior year quarters, respectively. The weighted average life of the loan portfolio is approximately 3 years at June 30, 2023.

Asset Quality

The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:


	Quarter ended
($ in thousands)	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
Nonperforming loans*	$	16,112		$	11,972		$	9,981		$	18,184		$	19,560
Other	—			250			269			269			955
Nonperforming assets*	$	16,112		$	12,222		$	10,250		$	18,453		$	20,515

Nonperforming loans to total loans	0.15		%	0.12		%	0.10		%	0.19		%	0.21		%
Nonperforming assets to total assets	0.12		%	0.09		%	0.08		%	0.14		%	0.16		%
Allowance for credit losses to total loans	1.34		%	1.38		%	1.41		%	1.50		%	1.52		%
Net charge-offs (recoveries)	$	2,973		$	(264)		$	2,075		$	478		$	(175)

*Guaranteed balances excluded	$	6,666		$	6,835		$	6,708		$	6,532		$	6,063

Nonperforming assets increased $3.9 million during the second quarter 2023 and decreased $4.4 million from the prior year quarter. The increase from the linked quarter was primarily related to the addition of one credit relationship that was partially written down in the period. Annualized net charge-offs totaled 12 basis points of average loans in the second quarter 2023, compared to a net recovery of one basis point in the linked and prior year quarters.

The provision for credit losses totaled $6.3 million in the second quarter 2023, compared to $4.2 million and $0.7 million in the linked quarter and prior year quarter, respectively. The provision for credit losses in the second quarter 2023 was primarily related to loan growth, net charge-offs, and a change in forecasted economic factors. The provision in the linked quarter was primarily related to the impairment of an available-for-sale investment security of a failed bank and loan growth. The allowance for credit losses to total loans was 1.34% at June 30, 2023, compared to 1.38% and 1.52% in the linked and prior year quarters, respectively, and is reflective of the trend in credit quality.

Deposits

The following table presents deposits broken out by type for the most recent five quarters:


	Quarter ended

($ in thousands)	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
Noninterest-bearing demand accounts	$	3,880,561		$	4,192,523		$	4,642,732		$	4,642,539		$	4,746,478
Interest-bearing demand accounts	2,629,339			2,395,901			2,256,295			2,270,898			2,197,957
Money market and savings accounts	3,577,856			3,672,539			3,399,415			3,617,249			3,562,982
Brokered certificates of deposit	893,808			369,505			118,968			129,039			129,064
Other certificates of deposit	638,296			524,168			411,740			397,869			456,137
Total deposit portfolio	$	11,619,860		$	11,154,636		$	10,829,150		$	11,057,594		$	11,092,618

Noninterest-bearing deposits to total deposits	33.4		%	37.6		%	42.9		%	42.0		%	42.8		%
Total costs of deposits	1.46		%	0.92		%	0.53		%	0.31		%	0.13		%

Total deposits at June 30, 2023 were $11.6 billion, an increase of $465.2 million and $527.2 million from the linked quarter and prior year quarter, respectively. The increase from the linked quarter includes $524.3 million in brokered certificates of deposit that are a stable funding source to support loan growth. This strategy helped preserve wholesale borrowing capacity and liquidity measures. The mix of the deposit portfolio continued the shift from noninterest bearing demand deposits to higher yielding categories that began in the first quarter 2023. Competitive pricing pressures and the Federal Reserve’s monetary policy actions have continued to pressure industry-wide deposit flows. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $926.6 million at June 30, 2023, compared to $486.7 million at March 31, 2023.

Total estimated insured deposits, which includes collateralized deposits, reciprocal accounts and accounts that qualify for pass-through insurance, totaled $8.3 billion, or 72% of total deposits, at the end of June 30, 2023, compared to $7.7 billion, or 69% of total deposits, in the linked quarter.

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)	June 30, 2023		March 31, 2023		Increase (decrease)				June 30, 2022		Increase (decrease)
Deposit service charges	3,910		4,128		$	(218)	(5)	%	4,749		$	(839)	(18)	%
Wealth management revenue	2,472		2,516		(44)		(2)	%	2,533		(61)		(2)	%
Card services revenue	2,464		2,338		126		5	%	3,514		(1,050)		(30)	%
Tax credit income	368		1,813		(1,445)		(80)	%	1,186		(818)		(69)	%

Other income	5,076		6,103		(1,027)		(17)	%	2,212		2,864		129	%

Total noninterest income	$	14,290	$	16,898	$	(2,608)	(15)	%	$	14,194	$	96	1	%

Total noninterest income was $14.3 million for the current quarter, a decrease of $2.6 million from the linked quarter and stable with the prior year quarter. The $2.6 million decrease from the linked quarter was primarily due to decreases in tax credit income and other income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The decrease in other income was primarily due to gains on the sale of investment securities and SBA loans in the linked quarter that did not reoccur in the second quarter 2023.

The following table presents a comparative summary of the major components of other income for the periods indicated:


	Linked quarter comparison								Prior year comparison
	Quarter ended								Quarter ended
($ in thousands)	June 30, 2023		March 31, 2023		Increase (decrease)				June 30, 2022		Increase (decrease)
BOLI	$	797	$	791	$	6	1	%	$	748	$	49	7	%
Community development investments	2,077		595		1,482		249	%	193		1,884		976	%
Private equity fund distribution	371		1,749		(1,378)		(79)	%	240		131		55	%
Servicing fees	407		512		(105)		(21)	%	165		242		147	%
Swap fees	173		250		(77)		(31)	%	102		71		70	%
Miscellaneous income	1,251		2,206		(955)		(43)	%	764		487		64	%

Total other income	$	5,076	$	6,103	$	(1,027)	(17)	%	$	2,212	$	2,864	129	%

Community development and private equity distributions included in other income are not consistent sources of income and fluctuate based on distributions from the underlying funds. Servicing fee income may also fluctuate based on prepayment experience and changes to the discount rate used in the valuation of the servicing rights. Swap fee income is generated from customer hedging activities and varies based on customer transaction volume. The decrease in miscellaneous income from the linked quarter was primarily due to the gains on the sale of SBA loans and investment securities that were recognized in the linked quarter.

Noninterest Expense

The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:


	Linked quarter comparison									Prior year comparison
	Quarter ended									Quarter ended
($ in thousands)	June 30, 2023		March 31, 2023			Increase (decrease)				June 30, 2022		Increase (decrease)
Employee compensation and benefits	$	41,641	$	42,503		$	(862)	(2)	%	$	36,028	$	5,613	16	%
Occupancy	3,954		4,061		4061	(107)		(3)	%	4,309		(355)		(8)	%

Deposit costs	16,980		12,720			4,260		33	%	5,905		11,075		188	%


Other expense	23,381		21,699			1,682		8	%	19,182		4,199		22	%

Total noninterest expense	$	85,956	$	80,983		$	4,973	6	%	$	65,424	$	20,532	31	%

Employee compensation and benefits decreased $0.9 million from the linked quarter due to a $2.8 million decrease in benefits, primarily employer payroll taxes and 401(k) expense that are seasonally higher in the first quarter each year. The decrease in benefits was partially offset by a $1.9 million increase in salaries and variable compensation due to a full quarter of merit increases that became effective on March 1, 2023, and an expanded associate base. Deposit costs relate to certain specialized deposit businesses that are impacted by higher interest rates as well as increasing average balances. Deposit costs increased $4.3 million from the linked quarter primarily due to higher

average balances and an increase in expenses related to the earnings credit earned on these accounts. The linked quarter deposit costs were also lower due to the expiration of certain earnings credits that were forfeited. Other expense increased $1.7 million from the linked quarter, primarily related to a $1.5 million increase in operational losses.

The increase in noninterest expense of $20.5 million from the prior year quarter was primarily an increase in the associate base, merit increases throughout 2022 and 2023, and an increase in variable deposit costs.

For the second quarter 2023, the Company’s core efficiency ratio5 was 54.0%, compared to 50.5% for the linked quarter and 51.0% for the prior year quarter.

Income Taxes

The Company’s effective tax rate was 22% for each of the current, linked and prior year quarters.

Capital

The following table presents total equity and various EFSC capital ratios for the most recent five quarters:


	Quarter ended
($ in thousands)	June 30, 2023*			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
Shareholders’ equity	$	1,618,233		$	1,592,820		$	1,522,263		$	1,446,218		$	1,447,412
Total risk-based capital to risk-weighted assets	14.1		%	14.3		%	14.2		%	14.2		%	14.2		%
Tier 1 capital to risk weighted assets	12.5		%	12.6		%	12.6		%	12.6		%	12.5		%
Common equity tier 1 capital to risk-weighted assets	11.1		%	11.2		%	11.1		%	11.0		%	10.9		%
Leverage ratio	11.0		%	11.1		%	10.9		%	10.4		%	9.8		%
Tangible common equity to tangible assets	8.65		%	8.81		%	8.43		%	7.86		%	7.80		%

*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Total equity was $1.6 billion at June 30, 2023, an increase of $25.4 million from the linked quarter. The increase was primarily due to current period net income of $49.1 million. This increase was partially offset by a $17.5 million decrease in accumulated other comprehensive income, primarily due to a net fair value decrease in the Company’s fixed-rate, available-for-sale investment portfolio, and common and preferred stock dividends of $10.3 million. The Company’s tangible common book value per share was $31.23 at June 30, 2023, compared to $30.55 and $26.63 in the linked and prior year quarters, respectively.

The Company’s regulatory capital ratios continue to exceed the “well-capitalized” regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

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, ROATCE, PPNR return on average assets (“PPNR ROAA”), core efficiency ratio, the tangible common equity ratio, and tangible book value per common share, 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.

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

The Company considers its tangible common equity, PPNR, ROATCE, PPNR ROAA, core efficiency ratio, the tangible common equity ratio, and tangible book value per common share, 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, that 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, July 25, 2023. During the call, management will review the second quarter 2023 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” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-888-550-5279 (Conference ID #7004515). A recorded replay of the conference call will be available on the website approximately two hours after the call’s completion. Visit https://bit.ly/EFSC2Q2023earnings to register. The replay will be available for at least two weeks following the conference call.

About Enterprise Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $13.9 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, Florida, 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, liquidity, yields and returns, loan diversification and credit management, shareholder value creation and the impact of 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. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions 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 and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), U.S. fiscal debt, budget and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, 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 legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase out of LIBOR, natural disasters, terrorist activities, war and geopolitical matters (including the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), 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 continuing 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 Report on Form 10-K for the fiscal year ended December 31, 2022, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

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.

Readers are cautioned not to place undue reliance on any forward-looking statements. 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, Senior Executive Vice President and CFO (314) 512-7233

Media: Steve Richardson, Senior Vice President (314) 995-5695

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited)


	Quarter ended															Six months ended
(in thousands, except per share data)	Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Jun 30, 2023			Jun 30, 2022
EARNINGS SUMMARY
Net interest income	$	140,692		$	139,529		$	138,835		$	124,290		$	109,613		$	280,221		$	210,778
Provision (benefit) for credit losses	6,339			4,183			2,123			676			658			10,522			(3,410)
Noninterest income	14,290			16,898			16,873			9,454			14,194			31,188			32,835
Noninterest expense	85,956			80,983			77,149			68,843			65,424			166,939			128,224
Income before income tax expense	62,687			71,261			76,436			64,225			57,725			133,948			118,799
Income tax expense	13,560			15,523			16,435			14,025			12,576			29,083			25,957
Net income	49,127			55,738			60,001			50,200			45,149			104,865			92,842
Preferred stock dividends	937			938			937			937			938			1,875			2,167
Net income available to common shareholders	$	48,190		$	54,800		$	59,064		$	49,263		$	44,211		$	102,990		$	90,675

Diluted earnings per common share	$	1.29		$	1.46		$	1.58		$	1.32		$	1.19		$	2.75		$	2.41
Return on average assets	1.44		%	1.72		%	1.83		%	1.51		%	1.34		%	1.58		%	1.38		%
Return on average common equity	12.48		%	14.85		%	16.52		%	13.74		%	12.65		%	13.64		%	12.76		%
ROATCE1	16.53		%	19.93		%	22.62		%	18.82		%	17.44		%	18.18		%	17.46		%
Net interest margin (tax equivalent)	4.49		%	4.71		%	4.66		%	4.10		%	3.55		%	4.60		%	3.41		%

Efficiency ratio	55.46		%	51.77		%	49.55		%	51.47		%	52.84		%	53.61		%	52.63		%
Core efficiency ratio1	54.04		%	50.47		%	48.10		%	49.80		%	51.03		%	52.25		%	50.82		%

Loans	$	10,512,623		$	10,011,918		$	9,737,138		$	9,354,987		$	9,269,176
Average loans	$	10,284,873		$	9,795,045		$	9,423,984		$	9,230,738		$	9,109,131		$	10,041,312		$	9,057,788
Assets	$	13,871,154		$	13,325,982		$	13,054,172		$	12,994,787		$	13,084,506
Average assets	$	13,671,985		$	13,131,195		$	12,986,568		$	13,158,121		$	13,528,474		$	13,403,084		$	13,571,002
Deposits	$	11,619,860		$	11,154,636		$	10,829,150		$	11,057,594		$	11,092,618
Average deposits	$	11,387,813		$	10,913,489		$	11,002,614		$	11,154,895		$	11,530,432		$	11,151,961		$	11,512,422
Period end common shares outstanding	37,359			37,311			37,253			37,223			37,206
Dividends per common share	$	0.25		$	0.25		$	0.24		$	0.23		$	0.22		$	0.50		$	0.43
Tangible book value per common share	$	31.23		$	30.55		$	28.67		$	26.62		$	26.63
Tangible common equity to tangible assets1	8.65		%	8.81		%	8.43		%	7.86		%	7.80		%
Total risk-based capital to risk-weighted assets2	14.1		%	14.3		%	14.2		%	14.2		%	14.2		%

1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.
2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)


	Quarter ended										Six months ended
($ in thousands, except per share data)	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
INCOME STATEMENTS
NET INTEREST INCOME
Interest income	$	187,897	$	169,033	$	156,737	$	135,695	$	116,069	$	356,930	$	222,650
Interest expense	47,205		29,504		17,902		11,405		6,456		76,709		11,872
Net interest income	140,692		139,529		138,835		124,290		109,613		280,221		210,778
Provision (benefit) for credit losses	6,339		4,183		2,123		676		658		10,522		(3,410)
Net interest income after provision (benefit) for credit losses	134,353		135,346		136,712		123,614		108,955		269,699		214,188

NONINTEREST INCOME
Deposit service charges	3,910		4,128		4,463		4,951		4,749		8,038		8,912
Wealth management revenue	2,472		2,516		2,423		2,432		2,533		4,988		5,155
Card services revenue	2,464		2,338		2,345		2,652		3,514		4,802		6,554
Tax credit income (loss)	368		1,813		2,389		(3,625)		1,186		2,181		3,794




Other income	5,076		6,103		5,253		3,044		2,212		11,179		8,420
Total noninterest income	14,290		16,898		16,873		9,454		14,194		31,188		32,835

NONINTEREST EXPENSE
Employee compensation and benefits	41,641		42,503		38,175		36,999		36,028		84,144		71,855
Occupancy	3,954		4,061		4,248		4,497		4,309		8,015		8,895


Deposit costs	16,980		12,720		13,256		7,661		5,905		29,700		10,165


Other expense	23,381		21,699		21,470		19,686		19,182		45,080		37,309
Total noninterest expense	85,956		80,983		77,149		68,843		65,424		166,939		128,224

Income before income tax expense	62,687		71,261		76,436		64,225		57,725		133,948		118,799
Income tax expense	13,560		15,523		16,435		14,025		12,576		29,083		25,957
Net income	$	49,127	$	55,738	$	60,001	$	50,200	$	45,149	$	104,865	$	92,842
Preferred stock dividends	937		938		937		937		938		1,875		2,167
Net income available to common shareholders	$	48,190	$	54,800	$	59,064	$	49,263	$	44,211	$	102,990	$	90,675

Basic earnings per common share	$	1.29	$	1.47	$	1.59	$	1.32	$	1.19	$	2.76	$	2.42
Diluted earnings per common share	$	1.29	$	1.46	$	1.58	$	1.32	$	1.19	$	2.75	$	2.41

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)


	Quarter ended
($ in thousands)	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022
BALANCE SHEET

ASSETS
Cash and due from banks	$	202,702	$	210,813	$	229,580	$	264,078	$	271,763
Interest-earning deposits	125,328		81,241		69,808		489,825		680,343
Securities and other investments	2,340,821		2,338,746		2,309,512		2,171,942		2,172,318
Loans held for sale	551		261		1,228		785		4,615

Loans	10,512,623		10,011,918		9,737,138		9,354,987		9,269,176
Allowance for credit losses	(141,319)		(138,295)		(136,932)		(140,572)		(140,546)
Total loans, net	10,371,304		9,873,623		9,600,206		9,214,415		9,128,630


Fixed assets, net	41,988		42,340		42,985		43,882		46,028


Goodwill	365,164		365,164		365,164		365,164		365,164
Intangible assets, net	14,544		15,680		16,919		18,217		19,528
Other assets	408,752		398,114		418,770		426,479		396,117
Total assets	$	13,871,154	$	13,325,982	$	13,054,172	$	12,994,787	$	13,084,506

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	3,880,561	$	4,192,523	$	4,642,732	$	4,642,539	$	4,746,478
Interest-bearing deposits	7,739,299		6,962,113		6,186,418		6,415,055		6,346,140
Total deposits	11,619,860		11,154,636		10,829,150		11,057,594		11,092,618
Subordinated debentures and notes	155,706		155,569		155,433		155,298		155,164
FHLB advances	150,000		100,000		100,000		—		50,000

Other borrowings	199,390		213,489		324,119		197,422		226,695
Other liabilities	127,965		109,468		123,207		138,255		112,617
Total liabilities	12,252,921		11,733,162		11,531,909		11,548,569		11,637,094
Shareholders’ equity:
Preferred stock	71,988		71,988		71,988		71,988		71,988
Common stock	374		373		373		372		372

Additional paid-in capital	988,355		984,281		982,660		979,543		976,684
Retained earnings	680,981		642,153		597,574		547,506		506,849
Accumulated other comprehensive loss	(123,465)		(105,975)		(130,332)		(153,191)		(108,481)
Total shareholders’ equity	1,618,233		1,592,820		1,522,263		1,446,218		1,447,412
Total liabilities and shareholders’ equity	$	13,871,154	$	13,325,982	$	13,054,172	$	12,994,787	$	13,084,506



	Six months ended
	June 30, 2023						June 30, 2022
($ in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
AVERAGE BALANCE SHEET

ASSETS
Interest-earning assets:



Loans1, 2	$	10,041,312	$	323,076	6.49	%	$	9,057,788	$	198,629	4.42	%


Securities2	2,293,249		34,667		3.05		1,996,442		23,913		2.42
Interest-earning deposits	140,206		3,290		4.73		1,590,569		3,313		0.42
Total interest-earning assets	12,474,767		361,033		5.84		12,644,799		225,855		3.60




Noninterest-earning assets	928,317						926,203

Total assets	$	13,403,084					$	13,571,002

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing demand accounts	$	2,356,708	$	16,027	1.37	%	$	2,416,889	$	1,194	0.10	%
Money market accounts	2,873,715		35,970		2.52		2,819,659		3,730		0.27
Savings accounts	709,490		457		0.13		836,249		137		0.03
Certificates of deposit	946,527		13,579		2.89		599,067		1,648		0.55
Total interest-bearing deposits	6,886,440		66,033		1.93		6,671,864		6,709		0.20
Subordinated debentures and notes	155,565		4,840		6.27		155,026		4,477		5.82
FHLB advances	104,887		2,611		5.02		50,000		392		1.58
Securities sold under agreements to repurchase	188,958		1,453		1.55		232,229		101		0.09
Other borrowings	94,048		1,772		3.80		22,123		193		1.76
Total interest-bearing liabilities	7,429,898		76,709		2.08		7,131,242		11,872		0.34

Noninterest-bearing liabilities:
Demand deposits	4,265,521						4,840,558
Other liabilities	112,625						94,129
Total liabilities	11,808,044						12,065,929
Shareholders' equity	1,595,040						1,505,073
Total liabilities and shareholders' equity	$	13,403,084					$	13,571,002






Total net interest income			$	284,324					$	213,983
Net interest margin					4.60	%					3.41	%

1 Average balances include nonaccrual loans. Interest income includes loan fees of $7.4 million and $9.3 million for the six months ended June 30, 2023 and June 30, 2022, respectively.
2 Non-taxable income is presented on a fully tax-equivalent basis using a 25.2% tax rate. The tax-equivalent adjustments were $4.1 million and $3.2 million for the six months ended June 30, 2023 and 2022, respectively.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)


	Quarter ended
($ in thousands)	Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022
LOAN PORTFOLIO
Commercial and industrial	$	4,360,862		$	4,032,189		$	3,859,882		$	3,709,893		$	3,596,701
Commercial real estate	4,802,293			4,699,302			4,628,371			4,438,647			4,294,375
Construction real estate	671,573			663,264			611,565			583,649			724,163
Residential real estate	368,867			364,059			395,537			397,450			413,727
Other	309,028			253,104			241,783			225,348			240,210
Total loans	$	10,512,623		$	10,011,918		$	9,737,138		$	9,354,987		$	9,269,176

DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts	$	3,880,561		$	4,192,523		$	4,642,732		$	4,642,539		$	4,746,478
Interest-bearing demand accounts	2,629,339			2,395,901			2,256,295			2,270,898			2,197,957
Money market and savings accounts	3,577,856			3,672,539			3,399,415			3,617,249			3,562,982
Brokered certificates of deposit	893,808			369,505			118,968			129,039			129,064
Other certificates of deposit	638,296			524,168			411,740			397,869			456,137
Total deposits	$	11,619,860		$	11,154,636		$	10,829,150		$	11,057,594		$	11,092,618

AVERAGE BALANCES


Loans	$	10,284,873		$	9,795,045		$	9,423,984		$	9,230,738		$	9,109,131

Securities	2,297,995			2,288,451			2,204,211			2,202,255			2,068,119
Interest-earning assets	12,756,653			12,189,750			11,995,295			12,198,251			12,579,211
Assets	13,671,985			13,131,195			12,986,568			13,158,121			13,528,474
Deposits	11,387,813			10,913,489			11,002,614			11,154,895			11,530,432
Shareholders’ equity	1,621,337			1,568,451			1,490,592			1,494,504			1,474,267
Tangible common equity1	1,169,091			1,115,052			1,035,896			1,038,495			1,016,940

YIELDS (tax equivalent)


Loans	6.64		%	6.33		%	5.87		%	5.10		%	4.51		%
Securities	3.06			3.03			2.91			2.65			2.51
Interest-earning assets	5.97			5.69			5.25			4.47			3.76
Interest-bearing deposits	2.26			1.56			0.94			0.54			0.24
Deposits	1.46			0.92			0.53			0.31			0.13
Subordinated debentures and notes	6.27			6.28			6.07			5.91			5.84
FHLB advances and other borrowed funds	3.45			2.60			1.39			0.66			0.51
Interest-bearing liabilities	2.40			1.72			1.07			0.67			0.37
Net interest margin	4.49			4.71			4.66			4.10			3.55

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)	Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022
ASSET QUALITY
Net charge-offs (recoveries)	$	2,973		$	(264)		$	2,075		$	478		$	(175)
Nonperforming loans	16,112			11,972			9,981			18,184			19,560
Classified assets	108,065			110,384			99,122			98,078			96,801
Nonperforming loans to total loans	0.15		%	0.12		%	0.10		%	0.19		%	0.21		%
Nonperforming assets to total assets	0.12		%	0.09		%	0.08		%	0.14		%	0.16		%
Allowance for credit losses to total loans	1.34		%	1.38		%	1.41		%	1.50		%	1.52		%
Allowance for credit losses to nonperforming loans	877.1		%	1,155.2		%	1,371.9		%	773.1		%	718.5		%
Net charge-offs (recoveries) to average loans -annualized	0.12		%	(0.01)		%	0.09		%	0.02		%	(0.01)		%

WEALTH MANAGEMENT
Trust assets under management	$	1,992,563		$	1,956,146		$	1,885,394		$	1,691,230		$	1,757,228


MARKET DATA
Book value per common share	$	41.39		$	40.76		$	38.93		$	36.92		$	36.97
Tangible book value per common share1	$	31.23		$	30.55		$	28.67		$	26.62		$	26.63
Market value per share	$	39.10		$	44.59		$	48.96		$	44.04		$	41.50
Period end common shares outstanding	37,359			37,311			37,253			37,223			37,206
Average basic common shares	37,347			37,305			37,257			37,241			37,243
Average diluted common shares	37,495			37,487			37,415			37,348			37,282

CAPITAL
Total risk-based capital to risk-weighted assets2	14.1		%	14.3		%	14.2		%	14.2		%	14.2		%
Tier 1 capital to risk-weighted assets2	12.5		%	12.6		%	12.6		%	12.6		%	12.5		%
Common equity tier 1 capital to risk-weighted assets2	11.1		%	11.2		%	11.1		%	11.0		%	10.9		%
Tangible common equity to tangible assets1	8.65		%	8.81		%	8.43		%	7.86		%	7.80		%

1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.
2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


	Quarter ended															Six months ended
($ in thousands)	Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Jun 30, 2023			Jun 30, 2022
CORE EFFICIENCY RATIO
Net interest income (GAAP)	$	140,692		$	139,529		$	138,835		$	124,290		$	109,613		$	280,221		$	210,778
Tax-equivalent adjustment	2,062			2,041			1,983			1,854			1,699			4,103			3,205
Noninterest income (GAAP)	14,290			16,898			16,873			9,454			14,194			31,188			32,835
Less gain on sale of investment securities	—			381			—			—			—			381			—
Less gain (loss) on sale of other real estate owned	97			90			—			(22)			(90)			187			(71)
Core revenue (non-GAAP)	156,947			157,997			157,691			135,620			125,596			314,944			246,889

Noninterest expense (GAAP)	85,956			80,983			77,149			68,843			65,424			166,939			128,224
Less amortization on intangibles	1,136			1,239			1,299			1,310			1,328			2,375			2,758


Core noninterest expense (non-GAAP)	84,820			79,744			75,850			67,533			64,096			164,564			125,466

Core efficiency ratio (non-GAAP)	54.04		%	50.47		%	48.10		%	49.80		%	51.03		%	52.25		%	50.82		%


	Quarter ended
($ in thousands)	Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022




















TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Shareholders’ equity	$	1,618,233		$	1,592,820		$	1,522,263		$	1,446,218		$	1,447,412
Less preferred stock	71,988			71,988			71,988			71,988			71,988
Less goodwill	365,164			365,164			365,164			365,164			365,164
Less intangible assets	14,544			15,680			16,919			18,217			19,528
Tangible common equity	$	1,166,537		$	1,139,988		$	1,068,192		$	990,849		$	990,732
Less net unrealized losses on HTM portfolio, after tax of 25.2%	53,611			48,630			61,435			81,752			60,512
Tangible common equity adjusted for unrealized losses on HTM securities	$	1,112,926		$	1,091,358		$	1,006,757		$	909,097		$	930,220

Common shares outstanding	37,359			37,311			37,253			37,223			37,206
Tangible book value per share	$	31.23		$	30.55		$	28.67		$	26.62		$	26.63

Total assets	$	13,871,154		$	13,325,982		$	13,054,172		$	12,994,787		$	13,084,506
Less goodwill	365,164			365,164			365,164			365,164			365,164
Less intangible assets	14,544			15,680			16,919			18,217			19,528
Tangible assets	$	13,491,446		$	12,945,138		$	12,672,089		$	12,611,406		$	12,699,814

Tangible common equity to tangible assets	8.65		%	8.81		%	8.43		%	7.86		%	7.80		%
Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities	8.25		%	8.43		%	7.94		%	7.21		%	7.32		%


	Quarter Ended															Six months ended
($ in thousands)	Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Jun 30, 2023			Jun 30, 2022
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE)
Average shareholder’s equity	$	1,621,337		$	1,568,451		$	1,490,592		$	1,494,504		$	1,474,267		$	1,595,040		$	1,505,073
Less average preferred stock	71,988			71,988			71,988			71,988			71,988			71,988			71,988
Less average goodwill	365,164			365,164			365,164			365,164			365,164			365,164			365,164
Less average intangible assets	15,094			16,247			17,544			18,857			20,175			15,667			20,854
Average tangible common equity	$	1,169,091		$	1,115,052		$	1,035,896		$	1,038,495		$	1,016,940		$	1,142,221		$	1,047,067

Net income available to common shareholders (GAAP)	$	48,190		$	54,800		$	59,064		$	49,263		$	44,211		$	102,990		$	90,675
ROATCE	16.53		%	19.93		%	22.62		%	18.82		%	17.44		%	18.18		%	17.46		%


	Quarter ended															Six months ended
($ in thousands)	Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Jun 30, 2023			Jun 30, 2022
CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)
Net interest income	$	140,692		$	139,529		$	138,835		$	124,290		$	109,613		$	280,221		$	210,778
Noninterest income	14,290			16,898			16,873			9,454			14,194			31,188			32,835
Less gain on sale of investment securities	—			381			—			—			—			381			—
Less gain (loss) on sale of other real estate owned	97			90			—			(22)			(90)			187			(71)
Less noninterest expense	85,956			80,983			77,149			68,843			65,424			166,939			128,224


PPNR	$	68,929		$	74,973		$	78,559		$	64,923		$	58,473		$	143,902		$	115,460

Average assets	$	13,671,985		$	13,131,195		$	12,986,568		$	13,158,121		$	13,528,474		$	13,403,084		$	13,571,002
ROAA - GAAP net income	1.44		%	1.72		%	1.83		%	1.51		%	1.34		%	1.58		%	1.38		%
PPNR ROAA - PPNR	2.02		%	2.32		%	2.40		%	1.96		%	1.73		%	2.17		%	1.72		%


	Quarter ended
($ in thousands)	Jun 30, 2023		Mar 31, 2023
CALCULATION OF ESTIMATED INSURED DEPOSITS
Estimated uninsured deposits per Call Report	$	3,821,266	$	4,284,815
Collateralized/affiliate deposits	(508,100)		(816,602)
Accrued interest on deposits	(5,052)		(1,688)
Adjusted uninsured/uncollateralized deposits	3,308,114		3,466,525
Estimated insured/collateralized deposits	8,311,746		7,688,111
Total deposits	$	11,619,860	$	11,154,636

2023 Second Quarter Earnings Webcast Exhibit 99.2 Enterprise Financial Services Corp

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, liquidity, yields and returns, loan diversification and credit management, shareholder value creation and the impact of 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. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions 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 and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), U.S. fiscal debt, budget and tax matters, and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, 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 legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, changes in the method of determining LIBOR and the phase out of LIBOR, natural disasters, terrorist activities, war and geopolitical matters (including the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), 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 continuing 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 Report on Form 10-K for the fiscal year ended December 31, 2022, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results. 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. 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. Readers are cautioned not to place undue reliance on any forward-looking statements. 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 - 2Q23* Capital • Tangible Common Equity/Tangible Assets** 8.65%, compared to 8.81% • Tangible Book Value Per Common Share $31.23, compared to $30.55 • CET1 Ratio 11.1%, compared to 11.2% • Quarterly common stock dividend of $0.25 per share in second quarter 2023 • Quarterly preferred stock dividend of $12.50 per share ($0.3125 per depositary share) • Net Income $49.1 million, down $6.6 million; EPS $1.29 • Net Interest Income $140.7 million, up $1.2 million; NIM 4.49% • PPNR** $68.9 million, down $6.0 million • ROAA 1.44%, compared to 1.72%; PPNR ROAA** 2.02%, compared to 2.32% • ROATCE** 16.53%, compared to 19.93% Earnings *Comparisons noted below are to the linked quarter unless otherwise noted. **A Non-GAAP Measure, Refer to Appendix for Reconciliation. 3

Financial Highlights, continued - 2Q23* *Comparisons noted below are to the linked quarter unless otherwise noted. ** Excludes insured accounts, collateralized accounts, accounts that qualify for pass-through insurance, reciprocal accounts, and affiliated accounts. Loans & Deposits • Loans $10.5 billion, up $500.7 million • Loan/Deposit Ratio 90% • Deposits $11.6 billion, up $465.2 million • Estimated uninsured deposits of $3.3 billion,** or 28% of total deposits • Noninterest-bearing Deposits/Total Deposits 33% Asset Quality • Nonperforming Loans/Loans 0.15% • Nonperforming Assets/Assets 0.12% • Allowance Coverage Ratio 1.34%; 1.48% adjusted for guaranteed loans 4

Areas of Focus Organic Loan and Deposit Growth • Fund Second-Half Loan Growth Predominantly with Customer Deposits • Build Franchise Value by Expanding Existing and Acquiring New Relationships Disciplined Loan and Deposit Pricing • Moderate Loan Growth through Elevated Spreads and Pricing Discipline Sustain Strong Asset Quality Maintain a Strong Balance Sheet Focus on Long-term Earnings Trajectory 5

$9,269 $9,355 $9,737 $10,012 $10,513 2Q22 3Q22 4Q22 1Q23 2Q23 In Millions 13% Total Loan Grow th Loan Trends 6

Loan Details - LTM 2Q23 2Q22 LTM Change C&I $ 2,029 $ 1,642 $ 387 CRE Investor Owned 2,291 1,978 313 CRE Owner Occupied 1,209 1,119 90 SBA loans* 1,328 1,284 44 Sponsor Finance* 880 647 233 Life Insurance Premium Financing* 912 748 164 Tax Credits* 609 551 58 Residential Real Estate 355 392 (37) Construction and Land Development 599 626 (27) Other 296 233 63 SBA PPP loans 5 49 (44) Total Loans $ 10,513 $ 9,269 $ 1,244 *Specialty loan category. In Millions 7

Loan Details - QTR 2Q23 1Q23 QTR Change C&I $ 2,029 $ 2,006 $ 23 CRE Investor Owned 2,291 2,240 51 CRE Owner Occupied 1,209 1,174 35 SBA loans* 1,328 1,316 12 Sponsor Finance* 880 678 202 Life Insurance Premium Financing* 912 860 52 Tax Credits* 609 547 62 Residential Real Estate 355 349 6 Construction and Land Development 599 590 9 Other 296 247 49 SBA PPP loans 5 5 — Total Loans $ 10,513 $ 10,012 $ 501 *Specialty loan category. In Millions 8

Loans By Region Specialty Lending $3,193 $3,503 $3,734 2Q22 1Q23 2Q23 In Millions Midwest $3,031 $3,267 $3,320 2Q22 1Q23 2Q23 Southwest $1,146 $1,327 $1,415 2Q22 1Q23 2Q23 Note: Excludes PPP and Other loans; Region Components: Midwest (St. Louis & Kansas City), Southwest (AZ, NM, Las Vegas, TX), West (Southern California) West $1,617 $1,663 $1,743 2Q22 1Q23 2Q23 9

Deposit Details - LTM 2Q23 2Q22 LTM Change Noninterest-bearing demand accounts $ 3,881 $ 4,747 $ (866) Interest-bearing demand accounts 2,629 2,198 431 Money market accounts 2,913 2,726 187 Savings accounts 665 837 (172) Certificates of deposit: Brokered 894 129 765 Other 638 456 182 Total deposits $ 11,620 $ 11,093 $ 527 Specialty deposits (included in total deposits) $ 2,861 $ 2,403 $ 458 In Millions 10

Deposit Details - QTR 2Q23 1Q23 QTR Change Noninterest-bearing demand accounts $ 3,881 $ 4,192 $ (311) Interest-bearing demand accounts 2,629 2,396 233 Money market accounts 2,913 2,960 (47) Savings accounts 665 713 (48) Certificates of deposit: Brokered 894 370 524 Other 638 524 114 Total Deposits $ 11,620 $ 11,155 $ 465 Specialty deposits (included in total deposits) $ 2,861 $ 2,831 $ 30 In Millions 11

Deposits By Region Specialty Deposits $2,403 $2,831 $2,861 2Q22 1Q23 2Q23 In Millions Midwest* $5,328 $5,072 $5,640 2Q22 1Q23 2Q23 Southwest $1,819 $1,835 $1,811 2Q22 1Q23 2Q23 West $1,542 $1,417 $1,308 2Q22 1Q23 2Q23 Note: Region Components: Midwest (St. Louis & Kansas City), Southwest (AZ, NM, Las Vegas, TX), West (Southern California) *Includes brokered balances 12

Specialty Deposits 39.7% 26.5% 17.2% 16.6% Community Associations $1.1 billion in deposit accounts specifically designed to serve the needs of community associations. Property Management $759 million in deposits. Specializing in the compliance of Property Management Trust Accounts. Third-Party Escrow $493 million in deposits. Growing product line providing independent escrow services. Trust Services $75 million in deposit accounts. Providing services to nondepository trust companies. Specialty deposits of $2.9 billion represent 25% of total deposits. Includes high composition of noninterest- bearing deposits with a low cost of funds. Other $475 million in deposit accounts primarily related to Sponsor Finance and Life Insurance Premium Finance loans. 2Q22 3Q22 4Q22 1Q23 2Q23 Community Assoc Property Mgmt Third-Party Escrow Other $— $500 $1,000 In Millions 13

40% 31% 28% 50% 33% 12% 4% 8% 32% 19% 21% 18% 2% Core Funding Mix Commercial Business Banking Consumer In Millions $2,828$1,265$3,553 Cost of Funds1 Commercial Business Banking Consumer Specialty Brokered Total 1.33% 0.41% 0.84% 1.03% 3.24% 1At June 30, 2023 2Excludes insured accounts, collateralized accounts, accounts that qualify for pass-through insurance, reciprocal accounts, and affiliated accounts. Note: Brokered deposits: 2Q23 $1.1 billion; 3.08% cost of funds Specialty $2,861 56% 7% 36%2Q23 Net New/Closed Deposit Accounts COMMERCIAL BUSINESS BANKING CONSUMER SPECIALTY Average balance ($ in thousands) 2Q23 $ 52,313 $ 15,031 $ 687 $ 161,683 1Q23 $ 99,087 $ 41,931 $ 6,502 $ 106,043 4Q22 $ 104,743 $ 31,059 $ 48,646 $ 208,442 3Q22 $ 127,931 $ 19,413 $ 4,596 $ 221,198 Number of accounts 2Q23 (54) (110) 482 1,792 1Q23 (46) (206) 188 1,190 4Q22 180 307 377 1,356 3Q22 219 390 968 1,597 Total Portfolio Average Account Size & Cost of Funds Average account size ($ in thousands) 2Q23 $ 263 $ 66 $ 25 $ 133 Cost of funds 2Q231 1.64 % 0.53 % 1.01 % 1.12 % • Estimated uninsured deposits of $3.3 billion, or 28% of total deposits2 • ~80% of commercial deposits utilize Treasury Management services • ~90% of checking and savings accounts utilize online banking services • ~60% of commercial deposits have a lending relationship • ~ 136% of on- and off-balance sheet liquidity to estimated uninsured deposits Overview 14

Earnings Per Share Trend - 2Q23 $1.46 $(0.02) $(0.05) $(0.10) $1.29 1Q23 Operating Revenue Provision for Credit Losses Noninterest Expense 2Q23 Change in EPS 15

$109.6 $124.3 $138.8 $139.5 $140.7 3.55% 4.10% 4.66% 4.71% 4.49% 0.76% 2.20% 3.65% 4.52% 4.99% Net Interest Income Net Interest Margin Avg Fed Funds Rate 2Q22 3Q22 4Q22 1Q23 2Q23 Net Interest Income Trend In Millions 28% NII G rowth 16

Net Interest Margin 4.51% 5.10% 5.87% 6.33% 6.64% 2.51% 2.65% 2.91% 3.03% 3.06% 3.76% 4.47% 5.25% 5.69% 5.97% Earning asset yield Securities yield Loan yield 2Q22 3Q22 4Q22 1Q23 2Q23 0.54% 0.94% 1.56% 2.26% 0.13% 0.31% 0.53% 0.92% 1.46% 0.37% 0.67% 1.07% 1.72% 2.40% Interest-bearing deposit rate Total cost of deposits Interest-bearing liabilities 2Q22 3Q22 4Q22 1Q23 2Q23 Components of Interest-bearing LiabilitiesComponents of Interest-earning Assets 4.71% 0.22% 0.01% 0.05% (0.17)% (0.33)% 4.49% 1Q23 Loans Securities Other Earning Asset Mix Funding Mix Cost of Funds 2Q23 Margin Bridge 0.24% 17

(1) 2 9 (1) 12 2Q22 3Q22 4Q22 1Q23 2Q23 $213 $86 $382 $275 $501 43.9% 42.5% 41.0% 42.4% 44.6% Organic Loans Avg Line Draw % 2Q22 3Q22 4Q22 1Q23 2Q23 2Q23 1Q23 2Q22 NPLs/Loans 0.15% 0.12% 0.21% NPAs/Assets 0.12% 0.09% 0.16% ACL/NPLs 877.1% 1155.2% 718.5% ACL/Loans** 1.48% 1.53% 1.69% Annualized Net Charge-offs (Recoveries) to Average Loans Provision for Credit Losses* $0.7 $0.7 $2.1 $4.2 $6.3 2Q22 3Q22 4Q22 1Q23 2Q23 In Millions bps bps bps bps bps In Millions Loan Growth and Average Line of Credit Utilization *Includes credit loss expense on loans, investments and unfunded commitments. **Excludes guaranteed loans. Credit Trends 18

$138.3 $6.0 $(3.0) $141.3 ACL 1Q23 Portfolio Changes Net Charge-offs ACL 2Q23 Allowance for Credit Losses for Loans In Millions • 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 2Q23 In Millions Loans ACL ACL as a % of Loans Commercial and industrial $ 4,361 $ 60 1.38 % Commercial real estate 4,802 57 1.19 % Construction real estate 672 13 1.93 % Residential real estate 369 7 1.90 % Other 309 4 1.29 % Total $ 10,513 $ 141 1.34 % Reserves on sponsor finance, which is included in the categories above, represented $22.1 million. Total ACL percentage of loans excluding government guaranteed loans was 1.48%. 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 ◦ Percentage change in Retail Sales ◦ Percentage change in CRE Index 19

Noninterest Income Trend Other Noninterest Income DetailNoninterest Income In Millions $14.2 $9.5 $16.9 $16.9 $14.3 $2.2 $3.0 $5.3 $6.1 $5.1$1.2 $(3.6) $2.4 $1.8 $0.4 $4.8 $5.0 $4.5 $4.1 $3.9 $3.5 $2.7 $2.3 $2.3 $2.4 $2.5 $2.4 $2.4 $2.5 $2.5 11.5% 7.1% 10.8% 10.8% 9.2% Other Tax Credit Income Deposit Services Charge Card Services Wealth Management Noninterest income/Total income 2Q22 3Q22 4Q22 1Q23 2Q23 $2.2 $3.0 $5.3 $6.1 $5.1 $0.7 $1.2 $0.9 $1.7 $1.2 $0.2 $0.6 $0.2 $0.5 $0.4 $0.7 $0.8 $0.8 $0.8 $0.8 $0.1 $0.2 $0.2 $0.3 $0.2 $0.2 $2.8 $0.6 $2.1 $0.4 $1.7 $0.4 $0.5 Miscellaneous Servicing Fees BOLI Swap Fees CDE Private Equity Fund Distribution Gain on SBA loan sales Mortgage 2Q22 3Q22 4Q22 1Q23 2Q23 $0.2 $0.2 20

Noninterest Expense Trend Other Noninterest Expense DetailNoninterest Expense In Millions $65.4 $68.8 $77.1 $81.0 $86.0 $19.2 $19.6 $21.4 $21.7 $23.4 $5.9 $7.7 $13.3 $12.7 $17.0 $4.3 $4.5 $4.2 $4.1 $4.0 $36.0 $37.0 $38.2 $42.5 $41.6 51.0% 49.8% 48.1% 50.5% 54.0% Other Deposit costs Occupancy Employee compensation and benefits Core efficiency ratio* 2Q22 3Q22 4Q22 1Q23 2Q23 $19.2 $19.6 $21.4 $21.7 $23.4 $9.2 $9.4 $11.2 $10.7 $12.5 $3.1 $3.5 $3.6 $3.7 $3.7 $1.5 $1.6 $2.8 $1.6 $1.6 $1.6 $2.0 $1.6 $2.6 $2.6 $2.5 $1.8 $0.9 $1.9 $1.9 $1.3 $1.3 $1.3 $1.2 $1.1 Miscellaneous Data processing Professional fees FDIC and other insurance Loan, legal expenses Amortization expense 2Q22 3Q22 4Q22 1Q23 2Q23 21

Capital Tangible Common Equity/Tangible Assets* 7.80% 7.86% 8.43% 8.81% 8.65% Tangible Common Equity/Tangible Assets 2Q22 3Q22 4Q22 1Q23 2Q23 *A Non-GAAP Measure, Refer to Appendix for Reconciliation. **Preliminary regulatory capital ratios. Regulatory Capital 10.0% 14.2% 14.2% 14.2% 14.3% 14.1% 6.5% 10.9% 11.0% 11.1% 11.2% 11.1% CET1 Tier 1 Total Risk Based Capital Minimum "Well Capitalized" Ratio 2Q22 3Q22 4Q22 1Q23 2Q23** 8.0% 12.5% 12.6% 12.6% 12.6% 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 CET1 ~10%, Tier 1 ~12%, and Total Capital ~14% Maintain 8-9% TCE – Common stock repurchases – M&A deal structures – Drives ROATCE above peer levels TBV and Dividends per Share $26.63 $26.62 $28.67 $30.55 $31.23 $0.22 $0.23 $0.24 $0.25 $0.25 TBV/Share Dividends per Share 2Q22 3Q22 4Q22 1Q23 2Q23 12.5% 22

Appendix

Investment Portfolio Breakout AFS & HTM Securities Obligations of U.S. Government- sponsored enterprises 12% Obligations of states and political subdivisions 43% Agency mortgage- backed securities, 31% Corporate debt securities 6% U.S. Treasury bills 8% TOTAL $2.3 Billion • Effective duration of 5.3 years balances the short 3-year duration of the loan portfolio • Cash flows next 12 months of approximately $270 million • 3.06% tax-equivalent yield • Municipal bond portfolio rated A or better • Laddered maturity and repayment structure for consistent cash flows Overview Total AFS (Fair Value) Total HTM (Fair Value) AFS Securities (Net Unrealized) HTM Securities (Net Unrealized) 2Q22 3Q22 4Q22 1Q23 2Q23 $— $600 $1,200 $1,800 $(240) $(120) $— $120 In Millions $313.2 $123.2 $158.8 $101.3 $74.6 3.21% 3.68% 5.22% 4.79% 5.07% Principal Cost Yield (TEQ) 2Q22 3Q22 4Q22 1Q23 2Q23 Investment Purchase Yield In Millions Investment Portfolio 24

EFSC Borrowing Capacity $3.7 $4.1 $4.2 $0.8 $0.8 $0.8 $1.4 $2.7 $2.6$0.1 $0.1 $0.1 $1.4 $0.5 $0.7 34% 37% 36% FHLB borrowing capacity FRB borrowing capacity Fed Funds lines Unpledged securities Borrowing capacity/Deposits 4Q22 1Q23 2Q23 In Billions End of Period and Average Loans to Deposits 84% 85% 90% 90% 91% 79% 83% 86% 90% 90% End of period Loans/Deposits Avg Loans/Avg Deposits 2Q22 3Q22 4Q22 1Q23 2Q23 • $764 million available FHLB capacity • $2.6 billion available FRB capacity • $140 million in seven federal funds lines • $647 million unpledged investment securities • $322 million cash • $25 million available line of credit • Portfolio of saleable SBA loans • Investment portfolio/total assets of 16% • FHLB maximum credit capacity is 45% of assets $0.3 $0.3 $0.3 $0.3 $0.2 $0.3 $0.5 $0.8 $1.1 $1.3 Annual Cash Flows Cumulative Cash Flows 2024 2025 2026 2027 2028 Investment Portfolio Cash Flows* In Billions Strong Liquidity Profile *Trailing 12 months ending June 30 of each year Liquidity 25

Office CRE (Non-owner Occupied) Total $528.0 Million Midwest 54.5% Southwest 27.5% West 13.4% Specialty 4.6% Office CRE Loans by Location Real Estate/ Rental/Leasing 86.9% Information 1.7% Health Care and Social Assistance 3.1% Professional Services 1.5% Wholesale Trade 1.7% Finance and Insurance 1.1% Other 4.0% Office CRE Loans by Industry Type Size Average Risk Rating Number of Loans Balance Average Balance > $10 Million 5.42 12 $ 171.9 $ 14.3 $5-10 Million 4.94 16 107.2 6.7 $2-5 Million 5.11 44 132.1 3.0 < $2 Million 5.19 204 116.8 0.6 Total 5.17 276 $ 528.0 $ 1.8 Office CRE Loans by Size $ In Millions• Average loan-to-origination value 49% • 71% of loans have recourse to owners • Average debt-service coverage ratio (DSCR) of 1.48x (2022) • Average market occupancy of 88%; average rents of $24 psf • 42% Class A, 54% Class B, 4% Class C • Zero nonperforming or past due 30-89 days • $18.2 million unfunded commitments 26

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 return on average assets (“PPNR ROAA”), core efficiency ratio, the tangible common equity ratio, and tangible book value per common share, in this presentation that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. The Company considers its tangible common equity, ROATCE, PPNR, PPNR ROAA, core efficency ratio, the tangible common equity ratio, and tangible book value per common share, collectively “core performance measures,” presented in this report 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 include exclude certain other income and expense items, such as merger related expenses, facilities charges, and the gain or loss on sale of investment securities, that 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. 27

Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 1,618,233 $ 1,592,820 $ 1,522,263 $ 1,446,218 $ 1,447,412 Less preferred stock 71,988 71,988 71,988 71,988 71,988 Less goodwill 365,164 365,164 365,164 365,164 365,164 Less intangible assets 14,544 15,680 16,919 18,217 19,528 Tangible common equity $ 1,166,537 $ 1,139,988 $ 1,068,192 $ 990,849 $ 990,732 Less net unrealized losses on HTM portfolio, after tax of 25.2% 53,611 48,630 61,435 81,752 60,512 Tangible common equity adjusted for unrealized losses on HTM securities $ 1,112,926 $ 1,091,358 $ 1,006,757 $ 909,097 $ 930,220 Common shares outstanding $ 37,359 $ 37,311 $ 37,253 $ 37,223 $ 37,206 Tangible book value per share $ 31.23 $ 30.55 $ 28.67 $ 26.62 $ 26.63 Total assets $ 13,871,154 $ 13,325,982 $ 13,054,172 $ 12,994,787 $ 13,084,506 Less goodwill 365,164 365,164 $ 365,164 365,164 365,164 Less intangible assets 14,544 15,680 $ 16,919 18,217 19,528 Tangible assets $ 13,491,446 $ 12,945,138 $ 12,672,089 $ 12,611,406 $ 12,699,814 Tangible common equity to tangible assets 8.65 % 8.81 % 8.43 % 7.86 % 7.80 % Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities 8.25 % 8.43 % 7.94 % 7.21 % 7.32 % CET1 RATIO ADJUSTED FOR UNREALIZED LOSSES CET1 capital $ 1,310,749 Less unrealized losses on investment portfolio, after tax of 25.2% 188,144 CET1 capital excluding unrealized losses on securities $ 1,122,605 Total risk-weighted assets $ 11,799,052 CET1 capital to risk-weighted assets 11.1 % CET1 capital excluding unrealized losses to risk-weighted assets 9.5 % 28

Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 CALCULATION OF PRE-PROVISION NET REVENUE Net interest income $ 140,692 $ 139,529 $ 138,835 $ 124,290 $ 109,613 Noninterest income 14,290 16,898 16,873 9,454 14,194 Less gain on sale of investment securities — 381 — — — Less gain (loss) on sale of other real estate owned 97 90 — (22) (90) Less noninterest expense 85,956 80,983 77,149 68,843 65,424 PPNR $ 68,929 $ 74,973 $ 78,559 $ 64,923 $ 58,473 Average assets $ 13,671,985 $ 13,131,195 $ 12,986,568 $ 13,158,121 $ 13,528,474 ROAA - GAAP net income 1.44 % 1.72 % 1.83 % 1.51 % 1.34 % PPNR ROAA - PPNR 2.02 % 2.29 % 2.40 % 1.96 % 1.73 % Quarter ended ($ in thousands) Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE) Average shareholder’s equity $ 1,621,337 $ 1,568,451 $ 1,490,592 $ 1,494,504 $ 1,474,267 Less average preferred stock 71,988 71,988 71,988 71,988 71,988 Less average goodwill 365,164 365,164 365,164 365,164 365,164 Less average intangible assets 15,094 16,247 17,544 18,857 20,175 Average tangible common equity $ 1,169,091 $ 1,115,052 $ 1,035,896 $ 1,038,495 $ 1,016,940 Net income available to common shareholders $ 48,190 $ 54,800 $ 59,064 $ 49,263 $ 44,211 ROATCE 16.53 % 19.93 % 22.62 % 18.82 % 17.44 % 29

Reconciliation of Non-GAAP Financial Measures Quarter ended ($ in thousands) Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 CORE EFFICIENCY RATIO Net interest income (GAAP) $ 140,692 $ 139,529 $ 138,835 $ 124,290 $ 109,613 Tax-equivalent adjustment 2,062 2,041 1,983 1,854 1,699 Net interest income - FTE (non-GAAP) 142,754 141,570 140,818 126,144 111,312 Noninterest income (GAAP) 14,290 16,898 16,873 9,454 14,194 Less gain on sale of investment securities — 381 — — — Less gain (loss) on sale of other real estate owned 97 90 — (22) (90) Core revenue (non-GAAP) 156,947 157,997 157,691 135,620 125,596 Noninterest expense (GAAP) 85,956 80,983 77,149 68,843 65,424 Less amortization on intangibles 1,136 1,239 1,299 1,310 1,328 Core noninterest expense (non-GAAP) 84,820 79,744 75,850 67,533 64,096 Core efficiency ratio (non-GAAP) 54.04 % 50.47 % 48.10 % 49.80 % 51.03 % 30

Document and Entity Information Document	Jul. 24, 2023
Document Type	8-K
Document Period End Date	Jul. 24, 2023
Entity Registrant Name	ENTERPRISE FINANCIAL SERVICES CORP
Entity Incorporation, State or Country Code	DE
Entity File Number	001-15373
Entity Tax Identification Number	43-1706259
Entity Address, Address Line One	150 N. Meramec Avenue
Entity Address, City or Town	St. Louis
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63105
City Area Code	314
Local Phone Number	725-5500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001025835
Amendment Flag	false
Common Stock
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	EFSC
Security Exchange Name	NASDAQ
Depositary Shares
Title of 12(b) Security	Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A
Trading Symbol	EFSCP
Security Exchange Name	NASDAQ

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