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EFSC
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Enterprise Financial Reports Fourth Quarter and Full Year 2024 Results

1. EFSC reported diluted EPS of $1.28 for Q4 2024. 2. Total deposits increased by $681 million, reaching $13.1 billion. 3. Net interest margin decreased to 4.13% in Q4 2024. 4. Share repurchases and increased dividends highlight commitment to shareholder value. 5. Nonperforming assets ratio improved to 0.30% from 0.34% year-over-year.

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Immediate effects from the quarterly earnings report and dividend declaration.

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NASDAQ: EFSC
ST. LOUIS--(BUSINESS WIRE)--Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), commented, “I am pleased that a continued focus on clients, associates, and our diversified business model has resulted in strong fourth quarter and full year 2024 financial results. These results, along with share repurchases and an increased common stock dividend, demonstrate our commitment to driving long-term shareholder value.” Lally added, “We reported diluted earnings per share of $1.28 for the fourth quarter and $4.83 for the full year 2024. Our earnings resulted in a 1.27% ROAA and a 13.63% ROATCE1 for the fourth quarter. For the full year, we had a 1.25% ROAA and a 13.58% ROATCE1. We continued to grow the loan portfolio in a challenging interest rate environment, while also significantly increasing the deposit portfolio through granular client relationships. We have also made a significant investment in our operational and growth capabilities in 2024, with the completion of a core system conversion in the fourth quarter and the addition of new talent in our higher growth markets. As we look to 2025, we expect to continue to leverage these investments and capitalize on opportunities to grow and strengthen the Company.” Full-Year Highlights For 2024, net income was $185.3 million, or $4.83 per diluted share, compared to $194.1 million, or $5.07 per diluted share, in 2023. Pre-provision net revenue (“PPNR”)2 for 2024 was $255.2 million, compared to $284.8 million in 2023. The decrease in PPNR2 in 2024 was primarily due to increases in employee compensation and benefits, deposit costs and expenses incurred on the core system conversion, partially offset by an increase in operating revenue. Offsetting the decrease in PPNR2 was a $15.1 million decrease in the provision for credit losses in 2024 compared to 2023 due to an improvement in overall asset quality. NIM decreased to 4.16% in 2024, from 4.43% in 2023, primarily due to the impact of higher interest expense on the deposit portfolio from an increase in deposit rates and average balances. The total cost of deposits was 2.12% in 2024 compared to 1.58% in 2023. Offsetting the decline in NIM was a $995.0 million increase in average interest earning assets, which resulted in total net interest income of $568.1 million, a $5.5 million increase over the prior year. Noninterest income was $69.7 million, an increase of $1.0 million from $68.7 million in 2023. Total noninterest expense was $385.0 million in 2024, an 11% increase from $348.2 million in 2023. The increase was primarily from higher customer deposit servicing costs due to higher average balances and an increase in earnings credit rates, an increase in compensation due to the recruitment of new relationship bankers and annual merit increases, and expenses related to the core system conversion. The core efficiency ratio2 was 58.4% in 2024, compared to 53.4% in 2023. Nonperforming assets were 0.30% of total assets at the end of 2024, compared to 0.34% at the end of 2023. Net charge-offs were 0.16% of average loans in 2024, compared to 0.37% in 2023. The allowance for credit losses was 1.23% of total loans at the end of 2024, compared to 1.24% at the end of 2023. Excluding guaranteed portions of loans, the allowance to loans ratio2 was 1.34% and 1.35% at the end of 2024 and 2023, respectively. The provision for credit losses was $21.5 million and $36.6 million in 2024 and 2023, respectively. The Company maintained a strong liquidity position in 2024, with total deposits of $13.1 billion, a loan-to-deposit ratio of 85.3% and cash and investment securities of $3.6 billion as of December 31, 2024. This compares to total deposits of $12.2 billion, a loan-to-deposit ratio of 89.4% and cash and investment securities of $2.9 billion at the end of 2023. Non-interest bearing deposits comprise 34.1% of total deposits at December 31, 2024, compared to 32.5% at the end of 2023. Excluding brokered certificates of deposits, core deposits as of December 31, 2024 totaled $12.7 billion, an increase of $968.3 million from the prior year. Total shareholders’ equity was $1.8 billion and $1.7 billion as of December 31, 2024 and December 31, 2023, respectively. The increase was primarily due to net income of $185.3 million, offset by dividends and $29.6 million of share repurchases in 2024. The Company returned $39.6 million, or $1.06 per share, to common shareholders and $3.8 million, or $50.00 per share, to preferred shareholders in 2024. Fourth Quarter Highlights Earnings - Net income in the fourth quarter 2024 was $48.8 million, a decrease of $1.8 million and an increase of $4.3 million compared to the linked and prior year quarters, respectively. Earnings per diluted share was $1.28 for the fourth quarter 2024, compared to $1.32 and $1.16 for the linked and prior year quarters, respectively. Adjusted diluted earnings per common share2 was $1.32 for the fourth quarter 2024, compared to $1.29 and $1.20 for the linked and prior year quarters, respectively. PPNR3 - PPNR of $69.4 million in the fourth quarter 2024 increased $4.3 million and decreased $6.3 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to an increase in both net interest income and noninterest income, partially offset by an increase in employee compensation and benefits due to higher self-insured medical claims and an increase in expenses related to the core system conversion. The decrease from the prior year quarter was primarily due to an increase in customer deposit servicing costs and core conversion expenses. Net interest income and NIM - Net interest income of $146.4 million for the fourth quarter 2024 increased $2.9 million and $5.6 million from the linked and prior year quarters, respectively. NIM was 4.13% for the fourth quarter 2024, compared to 4.17% and 4.23% for the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income increased due to higher average loan and investment balances, expanding yields on the investment portfolio and a decrease in rates paid on interest-bearing deposits. Noninterest income - Noninterest income of $20.6 million for the fourth quarter 2024 decreased $0.8 million and $4.8 million from the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily due to a net gain on sale of other real estate owned in the linked quarter, partially offset by an increase in tax credit income as a result of higher volumes. Compared to the prior year quarter, the decrease was primarily related to a decrease in tax credit income and income from community development investments. Noninterest expense - Noninterest expense of $99.5 million for the fourth quarter 2024 increased $1.5 million and $6.9 million from the linked and prior year quarters, respectively. The increase from linked and prior year quarters was primarily driven by higher employee compensation and expenses related to the core system conversion. Compared to the prior year quarter, the increase was also attributed to higher deposit servicing costs. Loans - Total loans increased $140.5 million from the linked quarter to $11.2 billion as of December 31, 2024. Loans grew 5% on an annualized basis from the linked quarter, and 3% for the year. Average loans totaled $11.1 billion for the fourth quarter 2024, compared to $11.0 billion and $10.7 billion for the linked and prior year quarters, respectively. Asset quality - The allowance for credit losses to loans was 1.23% at December 31, 2024, compared to 1.26% at September 30, 2024 and 1.24% at December 31, 2023. The ratio of nonperforming assets to total assets was 0.30% at December 31, 2024, compared to 0.22% and 0.34% at September 30, 2024 and December 31, 2023, respectively. The provision for credit losses recorded in the fourth quarter 2024 was $6.8 million, compared to $4.1 million and $18.1 million for the linked and prior year quarters, respectively. Deposits - Total deposits increased $681.2 million from the linked quarter to $13.1 billion as of December 31, 2024. Excluding brokered certificates of deposits, deposits increased $677.5 million. Average deposits totaled $13.0 billion for the fourth quarter 2024, compared to $12.5 billion and $12.2 billion for the linked and prior year quarters, respectively. At December 31, 2024, noninterest-bearing deposits totaled $4.5 billion, or 34.1% of total deposits, and the loan to deposit ratio was 85.3%. Liquidity - The total available on- and off-balance-sheet liquidity was approximately $6.3 billion at December 31, 2024. On-balance-sheet liquidity consisted of cash of $764.2 million and $1.3 billion in unpledged investment securities at December 31, 2024. Off-balance-sheet liquidity consisted of $1.3 billion available through the Federal Home Loan Bank, $2.8 billion available through the Federal Reserve and $140.0 million through correspondent bank lines. Capital - Total shareholders’ equity was $1.8 billion and the tangible common equity to tangible assets4 was 9.05% at December 31, 2024, compared to 9.50% at September 30, 2024. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.4% and a total risk-based capital ratio of 13.4% as of December 31, 2024. The Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.8% and 14.6%, respectively, at December 31, 2024. The Company’s Board of Directors approved a quarterly dividend of $0.29 per common share, payable on March 31, 2025 to shareholders of record as of March 14, 2025. The Board of Directors also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) December 15, 2024 to (but excluding) March 15, 2025. The dividend will be payable on March 15, 2025 and will be paid on March 17, 2025 to shareholders of record on February 28, 2025. _______________________________ 1 ROATCE, tangible common equity to tangible assets, and tangible book value per common share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.  2 PPNR, core efficiency ratio, allowance to loans ratio excluding guaranteed loans, and adjusted diluted earnings per share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.  3 PPNR is a non-GAAP measure. Please refer to discussion and reconciliation of this measures in the accompanying financial tables.   4 Tangible common equity to tangible assets is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables    Net Interest Income and NIM Average Balance Sheets The following table presents, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax-equivalent basis. Quarter ended December 31, 2024 September 30, 2024 December 31, 2023 ($ 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 $ 11,100,112 $ 187,761 6.73 % $ 10,971,575 $ 191,638 6.95 % $ 10,685,961 $ 184,982 6.87 % Securities2 2,748,063 24,279 3.51 2,503,124 21,404 3.40 2,276,915 18,385 3.20 Interest-earning deposits 474,878 5,612 4.70 402,932 5,348 5.28 420,762 5,631 5.31 Total interest-earning assets 14,323,053 217,652 6.05 13,877,631 218,390 6.26 13,383,638 208,998 6.20 Noninterest-earning assets 986,524 971,824 949,166 Total assets $ 15,309,577 $ 14,849,455 $ 14,332,804 Liabilities and Shareholders’ Equity Interest-bearing liabilities: Interest-bearing demand accounts $ 3,238,964 $ 19,517 2.40 % $ 3,018,309 $ 20,002 2.64 % $ 2,844,847 $ 17,248 2.41 % Money market accounts 3,588,326 30,875 3.42 3,551,492 33,493 3.75 3,342,979 30,579 3.63 Savings accounts 547,176 278 0.20 561,466 345 0.24 609,645 268 0.17 Certificates of deposit 1,361,575 14,323 4.18 1,368,339 14,928 4.34 1,373,808 14,241 4.11 Total interest-bearing deposits 8,736,041 64,993 2.96 8,499,606 68,768 3.22 8,171,279 62,336 3.03 Subordinated debentures and notes 156,472 2,634 6.70 156,329 2,695 6.86 155,907 2,475 6.30 FHLB advances 3,370 42 4.96 4,565 59 5.14 — — — Securities sold under agreements to repurchase 156,082 1,245 3.17 140,255 1,217 3.45 150,827 1,226 3.22 Other borrowings 36,201 96 1.05 36,226 96 1.05 49,013 314 2.54 Total interest-bearing liabilities 9,088,166 69,010 3.02 8,836,981 72,835 3.28 8,527,026 66,351 3.09 Noninterest-bearing liabilities: Demand deposits 4,222,115 4,046,480 3,992,067 Other liabilities 154,787 161,625 160,829 Total liabilities 13,465,068 13,045,086 12,679,922 Shareholders' equity 1,844,509 1,804,369 1,652,882 Total liabilities and shareholders' equity $ 15,309,577 $ 14,849,455 $ 14,332,804 Total net interest income $ 148,642 $ 145,555 $ 142,647 Net interest margin 4.13 % 4.17 % 4.23 % 1 Average balances include nonaccrual loans. Interest income includes loan fees of $2.4 million, $2.6 million, and $3.1 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. 2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $2.3 million, $2.1 million, and $1.9 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.   Net interest income for the fourth quarter was $146.4 million, an increase of $2.9 million and $5.6 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $148.6 million, $145.6 million, and $142.6 million for the current, linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to growth in interest earning assets and lower rates paid on interest-bearing liabilities, specifically money market accounts and certificates of deposit. In late September 2024, the Federal Reserve began reducing the federal funds target rate by a total of 100 basis points through the end of 2024. In response, the Company adjusted deposit pricing to partially mitigate the impact on income from the repricing of variable rate loans. The increase from the prior year quarter is primarily due to organic growth in loans and an increase in the investment portfolio. Interest income for the fourth quarter decreased $0.9 million as compared to the linked quarter primarily due to a $3.9 million decrease in loan interest income as a result of the repricing of variable rate loans, partially offset by a $2.7 million increase in interest on debt securities from an expanded investment portfolio at higher yields. Compared to the prior year quarter, interest income increased $8.3 million primarily due to an increase in average interest earning balances. Continued success in deposit generation has increased liquidity, which has been primarily deployed into the securities portfolio. The average interest rate of new loan originations in the fourth quarter 2024 was 7.10%, a decrease of 74 basis points from the linked quarter. Investment purchases in the fourth quarter 2024 had a weighted average, tax equivalent yield of 5.10%. Interest expense decreased $3.8 million in the fourth quarter 2024 as compared to the linked quarter primarily due to decreased interest paid on deposits. The average cost of interest-bearing deposits was 2.96%, a decrease of 26 basis points compared to the linked quarter. The total cost of deposits, including noninterest-bearing demand accounts, was 2.00% during the fourth quarter 2024, compared to 2.18% in the linked quarter. NIM, on a tax equivalent basis, was 4.13% in the fourth quarter 2024, a decrease of 4 basis points from the linked quarter and a decrease of 10 basis points from the prior year quarter. For the month of December 2024, the loan portfolio yield was 6.69% and the cost of total deposits was 1.91%. Investments At December 31, 2024 September 30, 2024 December 31, 2023 ($ in thousands) Carrying Value Net Unrealized Loss Carrying Value Net Unrealized Loss Carrying Value Net Unrealized Loss Available-for-sale (AFS) $ 1,862,270 $ (163,212 ) $ 1,786,793 $ (122,158 ) $ 1,618,273 $ (150,861 ) Held-to-maturity (HTM) 928,935 (70,321 ) 851,647 (46,351 ) 750,434 (54,572 ) Total $ 2,791,205 $ (233,533 ) $ 2,638,440 $ (168,509 ) $ 2,368,707 $ (205,433 ) Investment securities totaled $2.8 billion at December 31, 2024, an increase of $152.8 million from the linked quarter. The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities5 was 8.71% at December 31, 2024, compared to 9.26% at September 30, 2024. Loans The following table presents total loans for the most recent five quarters: At ($ in thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 C&I $ 2,139,032 $ 2,145,286 $ 2,107,097 $ 2,263,817 $ 2,186,203 CRE investor owned 2,405,356 2,346,575 2,308,926 2,280,990 2,291,660 CRE owner occupied 1,305,025 1,322,714 1,313,742 1,279,929 1,262,264 SBA loans* 1,298,007 1,272,679 1,269,145 1,274,780 1,281,632 Sponsor finance* 782,722 819,079 865,883 865,180 872,264 Life insurance premium finance* 1,114,299 1,030,273 996,154 1,003,597 956,162 Tax credits* 760,229 724,441 738,249 718,383 734,594 Residential real estate 350,640 346,460 339,889 354,615 359,957 Construction and land development 794,240 796,586 791,780 726,742 670,567 Other 270,805 275,799 269,142 260,459 268,815 Total loans $ 11,220,355 $ 11,079,892 $ 11,000,007 $ 11,028,492 $ 10,884,118 Quarterly loan yield 6.73 % 6.95 % 6.95 % 6.87 % 6.87 % Variable interest rate loans to total loans 60 % 61 % 61 % 61 % 61 % *Specialty loan category Loans totaled $11.2 billion at December 31, 2024, increasing $140.5 million, or 5% on an annualized basis, from the linked quarter. The increase was driven primarily by increases of $108.8 million and $41.1 million in specialty lending and commercial real estate, respectively. Average line utilization was approximately 42% for the quarter ended December 31, 2024, compared to 44% and 42% for the linked and prior year quarters, respectively. Asset Quality The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters: At ($ in thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Nonperforming loans* $ 42,687 $ 28,376 $ 39,384 $ 35,642 $ 43,728 Other 3,955 4,516 8,746 8,466 5,736 Nonperforming assets* $ 46,642 $ 32,892 $ 48,130 $ 44,108 $ 49,464 Nonperforming loans to total loans 0.38 % 0.26 % 0.36 % 0.32 % 0.40 % Nonperforming assets to total assets 0.30 % 0.22 % 0.33 % 0.30 % 0.34 % Allowance for credit losses $ 137,950 $ 139,778 $ 139,464 $ 135,498 $ 134,771 Allowance for credit losses to loans 1.23 % 1.26 % 1.27 % 1.23 % 1.24 % Quarterly net charge-offs $ 7,131 $ 3,850 $ 605 $ 5,864 $ 28,479 *Guaranteed balances excluded $ 21,974 $ 11,899 $ 12,933 $ 9,630 $ 10,682 Nonperforming assets increased $13.8 million during the fourth quarter 2024 and decreased $2.8 million from the prior year quarter. The increase from the prior quarter was primarily due to two relationships that are being actively monitored. Net charge-offs totaled 16 basis points of average loans in 2024, compared to 37 basis points in 2023. Annualized net charge-offs totaled 26 basis points of average loans in the fourth quarter 2024, compared to 14 basis points in the linked quarter and 106 basis points in the prior year quarter. The provision for credit losses totaled $6.8 million in the fourth quarter 2024, compared to $4.1 million and $18.1 million in the linked and prior year quarters, respectively. The provision for credit losses in the fourth quarter 2024 was primarily related to charge-offs and loan growth. The decline in the provision for credit losses in the fourth quarter 2024 compared to the prior year quarter was related to the reduction in net charge offs. Deposits The following table presents deposits broken out by type for the most recent five quarters: At ($ in thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Noninterest-bearing demand accounts $ 4,484,072 $ 3,934,245 $ 3,928,308 $ 3,805,334 $ 3,958,743 Interest-bearing demand accounts 3,175,292 3,048,981 2,951,899 2,956,282 2,950,259 Money market and savings accounts 4,117,524 4,121,543 4,039,626 4,006,702 3,994,455 Brokered certificates of deposit 484,588 480,934 494,870 659,005 482,759 Other certificates of deposit 885,016 879,619 867,680 826,378 790,155 Total deposit portfolio $ 13,146,492 $ 12,465,322 $ 12,282,383 $ 12,253,701 $ 12,176,371 Noninterest-bearing deposits to total deposits 34.1 % 31.6 % 32.0 % 31.1 % 32.5 % Total costs of deposits 2.00 % 2.18 % 2.16 % 2.13 % 2.03 % Total deposits at December 31, 2024 were $13.1 billion, an increase of $681.2 million and $970.1 million from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, deposits increased $677.5 million and $968.3 million from the linked and prior year quarters, respectively. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.3 billion at December 31, 2024, compared to $1.2 billion at September 30, 2024. Noninterest Income The following table presents a comparative summary of the major components of noninterest income for the periods indicated: Linked quarter comparison Prior year comparison Quarter ended Quarter ended ($ in thousands) December 31, 2024 September 30, 2024 Increase (decrease) December 31, 2023 Increase (decrease) Deposit service charges $ 4,730 $ 4,649 $ 81 2 % $ 4,334 $ 396 9 % Wealth management revenue 2,719 2,599 120 5 % 2,428 291 12 % Card services revenue 2,484 2,573 (89 ) (3 )% 2,666 (182 ) (7 )% Tax credit income 6,018 3,252 2,766 85 % 9,688 (3,670 ) (38 )% Other income 4,680 8,347 (3,667 ) (44 )% 6,336 (1,656 ) (26 )% Total noninterest income $ 20,631 $ 21,420 $ (789 ) (4 )% $ 25,452 $ (4,821 ) (19 )% Total noninterest income for the fourth quarter 2024 was $20.6 million, a decrease of $0.8 million and $4.8 million from the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily due to a net gain on sale of other real estate owned in the third quarter 2024 that did not reoccur, partially offset by an increase in tax credit income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The decrease from the prior year quarter was primarily due to a decrease in tax credit income and income from community development investments. The following table presents a comparative summary of the major components of other income for the periods indicated: Linked quarter comparison Prior year comparison Quarter ended Quarter ended ($ in thousands) December 31, 2024 September 30, 2024 Increase (decrease) December 31, 2023 Increase (decrease) BOLI $ 895 $ 1,123 $ (228 ) (20 )% $ 1,279 $ (384 ) (30 )% Community development investments 297 1,177 (880 ) (75 )% 1,027 (730 ) (71 )% Private equity fund distributions 320 614 (294 ) (48 )% 725 (405 ) (56 )% Servicing fees 528 539 (11 ) (2 )% 774 (246 ) (32 )% Swap fees 972 17 955 5,618 % 163 809 496 % Gain (loss) on sale of other real estate owned (68 ) 3,159 (3,227 ) (102 )% — (68 ) — % Miscellaneous income 1,736 1,718 18 1 % 2,368 (632 ) (27 )% Total other income $ 4,680 $ 8,347 $ (3,667 ) (44 )% $ 6,336 $ (1,656 ) (26 )% The decrease in other income in the fourth quarter 2024 compared to the linked quarter was driven by a $3.2 million decrease in the net gain on sale of other real estate owned, as well as a decrease in income from community development investments. Compared to the prior year quarter, the decrease in other income was primarily related to a decrease in income from community development investments and private equity fund distributions. Community development investment income and private equity fund distributions are not consistent sources of income and fluctuate based on distributions from the underlying funds. Noninterest Expense The following table presents a comparative summary of the major components of noninterest expense for the periods indicated: Linked quarter comparison Prior year comparison Quarter ended Quarter ended ($ in thousands) December 31, 2024 September 30, 2024 Increase (decrease) December 31, 2023 Increase (decrease) Employee compensation and benefits $ 46,168 $ 45,359 $ 809 2 % $ 39,651 $ 6,517 16 % Deposit costs 22,881 23,781 (900 ) (4 )% 21,606 1,275 6 % Occupancy 4,336 4,372 (36 ) (1 )% 4,313 23 1 % Core conversion expense 1,893 1,375 518 38 % — 1,893 — % FDIC special assessment — — — — % 2,412 (2,412 ) (100 )% Other expense 24,244 23,120 1,124 5 % 24,621 (377 ) (2 )% Total noninterest expense $ 99,522 $ 98,007 $ 1,515 2 % $ 92,603 $ 6,919 7 % Noninterest expense was $99.5 million for the fourth quarter 2024, a $1.5 million and $6.9 million increase from the linked and prior year quarters, respectively. Employee compensation and benefits increased $0.8 million and $6.5 million from the linked and prior year quarters, respectively, because of increases in self-insured medical claims and variable compensation. Compared to the prior year quarter, the increase was primarily due to higher compensation and benefits from merit increases and the recruitment of new bankers. Additionally, expenses related to the core system conversion increased by $0.5 million and $1.9 million from the linked and prior year quarters, respectively, due to the completion of the project in the fourth quarter 2024. Compared to the linked quarter, the increase in noninterest expense was partially offset by lower deposit costs, which decreased $0.9 million during the quarter. The year-over-year increases in noninterest expense were partially offset by a decrease in the FDIC special assessment. For the fourth quarter 2024, the Company’s core efficiency ratio6 was 57.1% for the quarter ended December 31, 2024, compared to 58.4% for the linked quarter and 53.1% for the prior year quarter. Income Taxes The Company’s effective tax rate was 19.5% in the fourth quarter 2024, compared to 19.4% and 19.8% in the linked and prior year quarters, respectively. The Company continues to leverage tax credit opportunities as part of its tax planning strategy. Capital The following table presents total equity and various EFSC capital ratios for the most recent five quarters: At ($ in thousands) December 31, 2024* September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Shareholders’ equity $ 1,824,002 $ 1,832,011 $ 1,755,273 $ 1,731,725 $ 1,716,068 Total risk-based capital to risk-weighted assets 14.6 % 14.8 % 14.6 % 14.3 % 14.2 % Tier 1 capital to risk-weighted assets 13.1 % 13.2 % 13.0 % 12.8 % 12.7 % Common equity tier 1 capital to risk-weighted assets 11.8 % 11.9 % 11.7 % 11.4 % 11.3 % Leverage ratio 11.1 % 11.2 % 11.1 % 11.0 % 11.0 % Tangible common equity to tangible assets 9.05 % 9.50 % 9.18 % 9.01 % 8.96 % *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 $1.8 billion at December 31, 2024, a decrease of $8.0 million from the linked quarter. The Company’s tangible common book value per common share5 was $37.27 at December 31, 2024, compared to $37.26 and $33.85 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. _______________________________ 5 Tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Please refer to discussion and reconciliation of this measures in the accompanying financial tables.  6 Core efficiency ratio and tangible common book value per common share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.    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, core efficiency ratio, the tangible common equity ratio, tangible book value per common share, adjusted ROAA and adjusted diluted earnings per 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. The Company considers its tangible common equity, PPNR, ROATCE, core efficiency ratio, the tangible common equity ratio, tangible book value per common share, adjusted ROAA and adjusted diluted earnings per 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 the FDIC special assessment, core conversion expenses, merger-related expenses, facilities charges, and the gain or loss on sale of other real estate owned and 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, January 28, 2025. During the call, management will review the fourth quarter 2024 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 1-800-715-9871. After connecting, you may say the name of the conference or enter the Conference ID 35973. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC4Q2024EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. 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 $15.6 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,” “pipeline” 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, natural disasters (such as wildfires and earthquakes), terrorist activities, war and geopolitical matters (including the war in Israel and potential for a broader regional conflict and the war in Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, 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, 2023, 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.       ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited)    Quarter ended Year ended (in thousands, except per share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 EARNINGS SUMMARY Net interest income $ 146,370 $ 143,469 $ 140,529 $ 137,728 $ 140,732 $ 568,096 $ 562,592 Provision for credit losses 6,834 4,099 4,819 5,756 18,053 21,508 36,605 Noninterest income 20,631 21,420 15,494 12,158 25,452 69,703 68,725 Noninterest expense 99,522 98,007 94,017 93,501 92,603 385,047 348,186 Income before income tax expense 60,645 62,783 57,187 50,629 55,528 231,244 246,526 Income tax expense 11,811 12,198 11,741 10,228 10,999 45,978 52,467 Net income 48,834 50,585 45,446 40,401 44,529 185,266 194,059 Preferred stock dividends 937 938 937 938 937 $ 3,750 $ 3,750 Net income available to common shareholders $ 47,897 $ 49,647 $ 44,509 $ 39,463 $ 43,592 $ 181,516 $ 190,309 Diluted earnings per common share $ 1.28 $ 1.32 $ 1.19 $ 1.05 $ 1.16 $ 4.83 $ 5.07 Adjusted diluted earnings per share1 $ 1.32 $ 1.29 $ 1.21 $ 1.07 $ 1.20 $ 4.88 $ 5.11 Return on average assets 1.27 % 1.36 % 1.25 % 1.12 % 1.23 % 1.25 % 1.41 % Adjusted return on average assets1 1.31 % 1.32 % 1.27 % 1.14 % 1.28 % 1.26 % 1.41 % Return on average common equity 10.75 % 11.40 % 10.68 % 9.52 % 10.94 % 10.60 % 12.27 % Adjusted return on average common equity1 11.08 % 11.09 % 10.90 % 9.70 % 11.35 % 10.71 % 12.35 % ROATCE1 13.63 % 14.55 % 13.77 % 12.31 % 14.38 % 13.58 % 16.25 % Adjusted ROATCE1 14.05 % 14.16 % 14.06 % 12.53 % 14.92 % 13.71 % 16.35 % Net interest margin (tax equivalent) 4.13 % 4.17 % 4.19 % 4.13 % 4.23 % 4.16 % 4.43 % Efficiency ratio 59.59 % 59.44 % 60.26 % 62.38 % 55.72 % 60.37 % 55.15 % Core efficiency ratio1 57.11 % 58.42 % 58.09 % 60.21 % 53.06 % 58.42 % 53.42 % Assets $ 15,596,431 $ 14,954,125 $ 14,615,666 $ 14,613,338 $ 14,518,590 Average assets $ 15,309,577 $ 14,849,455 $ 14,646,381 $ 14,556,119 $ 14,332,804 $ 14,841,690 $ 13,805,236 Period end common shares outstanding 36,988 37,184 37,344 37,515 37,416 Dividends per common share $ 0.28 $ 0.27 $ 0.26 $ 0.25 $ 0.25 $ 1.06 $ 1.00 Tangible book value per common share1 $ 37.27 $ 37.26 $ 35.02 $ 34.21 $ 33.85 Tangible common equity to tangible assets1 9.05 % 9.50 % 9.18 % 9.01 % 8.96 % Total risk-based capital to risk-weighted assets2 14.6 % 14.8 % 14.6 % 14.3 % 14.2 % 1 Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP. 2 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.         ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)    Quarter ended Year ended (in thousands, except per share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 INCOME STATEMENTS NET INTEREST INCOME Interest income $ 215,380 $ 216,304 $ 211,644 $ 207,723 $ 207,083 $ 851,051 $ 764,919 Interest expense 69,010 72,835 71,115 69,995 66,351 282,955 202,327 Net interest income 146,370 143,469 140,529 137,728 140,732 568,096 562,592 Provision for credit losses 6,834 4,099 4,819 5,756 18,053 21,508 36,605 Net interest income after provision for credit losses 139,536 139,370 135,710 131,972 122,679 546,588 525,987 NONINTEREST INCOME Deposit service charges 4,730 4,649 4,542 4,423 4,334 18,344 16,559 Wealth management revenue 2,719 2,599 2,590 2,544 2,428 10,452 10,030 Card services revenue 2,484 2,573 2,497 2,412 2,666 9,966 10,028 Tax credit income (loss) 6,018 3,252 1,874 (2,190 ) 9,688 8,954 9,196 Other income 4,680 8,347 3,991 4,969 6,336 21,987 22,912 Total noninterest income 20,631 21,420 15,494 12,158 25,452 69,703 68,725 NONINTEREST EXPENSE Employee compensation and benefits 46,168 45,359 44,524 45,262 39,651 181,313 164,566 Deposit costs 22,881 23,781 21,706 20,277 21,606 88,645 72,293 Occupancy 4,336 4,372 4,197 4,326 4,313 17,231 16,526 FDIC special assessment — — — 625 2,412 625 2,412 Core conversion expense 1,893 1,375 1,250 350 — 4,868 — Other expense 24,244 23,120 22,340 22,661 24,621 92,365 92,389 Total noninterest expense 99,522 98,007 94,017 93,501 92,603 385,047 348,186 Income before income tax expense 60,645 62,783 57,187 50,629 55,528 231,244 246,526 Income tax expense 11,811 12,198 11,741 10,228 10,999 45,978 52,467 Net income $ 48,834 $ 50,585 $ 45,446 $ 40,401 $ 44,529 $ 185,266 $ 194,059 Preferred stock dividends 937 938 937 938 937 3,750 3,750 Net income available to common shareholders $ 47,897 $ 49,647 $ 44,509 $ 39,463 $ 43,592 $ 181,516 $ 190,309 Basic earnings per common share $ 1.29 $ 1.33 $ 1.19 $ 1.05 $ 1.16 $ 4.86 $ 5.09 Diluted earnings per common share $ 1.28 $ 1.32 $ 1.19 $ 1.05 $ 1.16 $ 4.83 $ 5.07         ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)    At ($ in thousands) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 BALANCE SHEETS ASSETS Cash and due from banks $ 270,975 $ 210,984 $ 176,698 $ 157,697 $ 193,275 Interest-earning deposits 495,076 218,919 219,342 215,951 243,610 Debt and equity investments 2,863,989 2,714,194 2,460,549 2,443,977 2,434,902 Loans held for sale 110 304 606 610 359 Loans 11,220,355 11,079,892 11,000,007 11,028,492 10,884,118 Allowance for credit losses (137,950 ) (139,778 ) (139,464 ) (135,498 ) (134,771 ) Total loans, net 11,082,405 10,940,114 10,860,543 10,892,994 10,749,347 Fixed assets, net 45,009 44,368 44,831 44,382 42,681 Goodwill 365,164 365,164 365,164 365,164 365,164 Intangible assets, net 8,484 9,400 10,327 11,271 12,318 Other assets 465,219 450,678 477,606 481,292 476,934 Total assets $ 15,596,431 $ 14,954,125 $ 14,615,666 $ 14,613,338 $ 14,518,590 LIABILITIES AND SHAREHOLDERS’ EQUITY Noninterest-bearing deposits $ 4,484,072 $ 3,934,245 $ 3,928,308 $ 3,805,334 $ 3,958,743 Interest-bearing deposits 8,662,420 8,531,077 8,354,075 8,448,367 8,217,628 Total deposits 13,146,492 12,465,322 12,282,383 12,253,701 12,176,371 Subordinated debentures and notes 156,551 156,407 156,265 156,124 155,984 FHLB advances — 150,000 78,000 125,000 — Other borrowings 280,821 170,815 178,269 195,246 297,829 Other liabilities 188,565 179,570 165,476 151,542 172,338 Total liabilities 13,772,429 13,122,114 12,860,393 12,881,613 12,802,522 Shareholders’ equity: Preferred stock 71,988 71,988 71,988 71,988 71,988 Common stock 370 372 373 375 374 Additional paid-in capital 990,733 992,642 994,116 995,969 995,208 Retained earnings 877,629 845,844 810,935 778,784 749,513 Accumulated other comprehensive loss (116,718 ) (78,835 ) (122,139 ) (115,391 ) (101,015 ) Total shareholders’ equity 1,824,002 1,832,011 1,755,273 1,731,725 1,716,068 Total liabilities and shareholders’ equity $ 15,596,431 $ 14,954,125 $ 14,615,666 $ 14,613,338 $ 14,518,590         ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)    Year ended December 31, 2024 December 31, 2023 ($ 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 $ 10,990,774 $ 755,448 6.87 % $ 10,324,951 $ 688,439 6.67 % Securities2 2,512,690 85,130 3.39 2,291,552 71,129 3.10 Interest-earning deposits 368,221 18,918 5.14 260,214 13,430 5.16 Total interest-earning assets 13,871,685 859,496 6.20 12,876,717 772,998 6.00 Noninterest-earning assets 970,005 928,519 Total assets $ 14,841,690 $ 13,805,236 LIABILITIES AND SHAREHOLDERS’ EQUITY Interest-bearing liabilities: Interest-bearing demand accounts $ 3,033,616 $ 76,932 2.54 % $ 2,559,238 $ 46,976 1.84 % Money market accounts 3,494,497 127,651 3.65 3,043,794 92,976 3.05 Savings accounts 567,147 1,261 0.22 668,368 975 0.15 Certificates of deposit 1,371,009 58,764 4.29 1,198,551 42,796 3.57 Total interest-bearing deposits 8,466,269 264,608 3.13 7,469,951 183,723 2.46 Subordinated debentures and notes 156,260 10,497 6.72 155,702 9,781 6.28 FHLB advances 30,363 1,691 5.57 54,615 2,752 5.04 Securities sold under agreements to repurchase 164,959 5,667 3.44 168,745 3,647 2.16 Other borrowings 37,833 492 1.30 71,738 2,424 3.38 Total interest-bearing liabilities 8,855,684 282,955 3.20 7,920,751 202,327 2.55 Noninterest-bearing liabilities: Demand deposits 4,042,368 4,131,163 Other liabilities 159,463 130,201 Total liabilities 13,057,515 12,182,115 Shareholders' equity 1,784,175 1,623,121 Total liabilities and shareholders' equity $ 14,841,690 $ 13,805,236 Total net interest income $ 576,541 $ 570,671 Net interest margin 4.16 % 4.43 % 1 Average balances include nonaccrual loans. Interest income includes loan fees of $9.6 million and $13.8 million for the years ended December 31, 2024 and December 31, 2023, respectively. 2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $8.4 million and $8.1 million for the years ended December 31, 2024 and December 31, 2023, respectively.         ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)    At or for the quarter ended ($ in thousands) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 LOAN PORTFOLIO Commercial and industrial $ 4,716,689 $ 4,628,488 $ 4,619,448 $ 4,766,310 $ 4,672,559 Commercial real estate 4,974,787 4,915,176 4,856,751 4,804,803 4,803,571 Construction real estate 891,059 896,325 893,672 820,416 760,425 Residential real estate 359,263 355,279 351,934 367,218 372,188 Other 278,557 284,624 278,202 269,745 275,375 Total loans $ 11,220,355 $ 11,079,892 $ 11,000,007 $ 11,028,492 $ 10,884,118 DEPOSIT PORTFOLIO Noninterest-bearing demand accounts $ 4,484,072 $ 3,934,245 $ 3,928,308 $ 3,805,334 $ 3,958,743 Interest-bearing demand accounts 3,175,292 3,048,981 2,951,899 2,956,282 2,950,259 Money market and savings accounts 4,117,524 4,121,543 4,039,626 4,006,702 3,994,455 Brokered certificates of deposit 484,588 480,934 494,870 659,005 482,759 Other certificates of deposit 885,016 879,619 867,680 826,378 790,155 Total deposits $ 13,146,492 $ 12,465,322 $ 12,282,383 $ 12,253,701 $ 12,176,371 AVERAGE BALANCES Loans $ 11,100,112 $ 10,971,575 $ 10,962,488 $ 10,927,932 $ 10,685,961 Securities 2,748,063 2,503,124 2,396,519 2,400,571 2,276,915 Interest-earning assets 14,323,053 13,877,631 13,684,459 13,596,571 13,383,638 Assets 15,309,577 14,849,455 14,646,381 14,556,119 14,332,804 Deposits 12,958,156 12,546,086 12,344,253 12,180,703 12,163,346 Shareholders’ equity 1,844,509 1,804,369 1,748,240 1,738,698 1,652,882 Tangible common equity1 1,398,427 1,357,362 1,300,305 1,289,776 1,202,872 YIELDS (tax equivalent) Loans 6.73 % 6.95 % 6.95 % 6.87 % 6.87 % Securities 3.51 3.40 3.35 3.27 3.20 Interest-earning assets 6.05 6.26 6.28 6.20 6.20 Interest-bearing deposits 2.96 3.22 3.19 3.14 3.03 Deposits 2.00 2.18 2.16 2.13 2.03 Subordinated debentures and notes 6.70 6.86 6.91 6.40 6.30 FHLB advances and other borrowed funds 2.81 3.01 3.52 3.80 3.06 Interest-bearing liabilities 3.02 3.28 3.26 3.22 3.09 Net interest margin 4.13 4.17 4.19 4.13 4.23   1 Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.          ENTERPRISE FINANCIAL SERVICES CORP CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)    Quarter ended (in thousands, except per share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 ASSET QUALITY Net charge-offs $ 7,131 $ 3,850 $ 605 $ 5,864 $ 28,479 Nonperforming loans 42,687 28,376 39,384 35,642 43,728 Classified assets 193,838 179,883 169,822 185,150 185,389 Nonperforming loans to total loans 0.38 % 0.26 % 0.36 % 0.32 % 0.40 % Nonperforming assets to total assets 0.30 % 0.22 % 0.33 % 0.30 % 0.34 % Allowance for credit losses to total loans 1.23 % 1.26 % 1.27 % 1.23 % 1.24 % Allowance for credit losses to loans, excluding guaranteed loans1 1.34 % 1.38 % 1.38 % 1.34 % 1.35 % Allowance for credit losses to nonperforming loans 323.2 % 492.6 % 354.1 % 380.2 % 308.2 % Net charge-offs to average loans - annualized 0.26 % 0.14 % 0.02 % 0.22 % 1.06 % WEALTH MANAGEMENT Trust assets under management $ 2,412,471 $ 2,499,807 $ 2,367,409 $ 2,352,902 $ 2,235,073 SHARE DATA Book value per common share $ 47.37 $ 47.33 $ 45.08 $ 44.24 $ 43.94 Tangible book value per common share1 $ 37.27 $ 37.26 $ 35.02 $ 34.21 $ 33.85 Market value per share $ 56.40 $ 51.26 $ 40.91 $ 40.56 $ 44.65 Period end common shares outstanding 36,988 37,184 37,344 37,515 37,416 Average basic common shares 37,118 37,337 37,485 37,490 37,421 Average diluted common shares 37,447 37,483 37,540 37,597 37,554 CAPITAL Total risk-based capital to risk-weighted assets2 14.6 % 14.8 % 14.6 % 14.3 % 14.2 % Tier 1 capital to risk-weighted assets2 13.1 % 13.2 % 13.0 % 12.8 % 12.7 % Common equity tier 1 capital to risk-weighted assets2 11.8 % 11.9 % 11.7 % 11.4 % 11.3 % Tangible common equity to tangible assets1 9.05 % 9.50 % 9.18 % 9.01 % 8.96 % 1 Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP. 2 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.         ENTERPRISE FINANCIAL SERVICES CORP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES    Quarter ended Year ended ($ in thousands) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 CORE EFFICIENCY RATIO Net interest income (GAAP) $ 146,370 $ 143,469 $ 140,529 $ 137,728 $ 140,732 $ 568,096 $ 562,592 Tax equivalent adjustment 2,272 2,086 2,047 2,040 1,915 8,445 8,079 Noninterest income (GAAP) 20,631 21,420 15,494 12,158 25,452 69,703 68,725 Less gain on sale of investment securities — — — — 220 — 601 Less gain (loss) on sale of other real estate owned (68 ) 3,159 — (2 ) — 3,089 187 Core revenue (non-GAAP) 169,341 163,816 158,070 151,928 167,879 643,155 638,608 Noninterest expense (GAAP) 99,522 98,007 94,017 93,501 92,603 385,047 348,186 Less FDIC special assessment — — — 625 2,412 625 2,412 Less core conversion expense 1,893 1,375 1,250 350 — 4,868 — Less amortization on intangibles 916 927 944 1,047 1,108 3,834 4,601 Core noninterest expense (non-GAAP) $ 96,713 $ 95,705 $ 91,823 $ 91,479 $ 89,083 $ 375,720 $ 341,173 Core efficiency ratio (non-GAAP) 57.11 % 58.42 % 58.09 % 60.21 % 53.06 % 58.42 % 53.42 %       Quarter ended (in thousands, except per share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO Shareholders’ equity (GAAP) $ 1,824,002 $ 1,832,011 $ 1,755,273 $ 1,731,725 $ 1,716,068 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 8,484 9,400 10,327 11,271 12,318 Tangible common equity (non-GAAP) $ 1,378,366 $ 1,385,459 $ 1,307,794 $ 1,283,302 $ 1,266,598 Less net unrealized losses on HTM securities, after tax 52,881 34,856 52,220 47,822 41,038 Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP) $ 1,325,485 $ 1,350,603 $ 1,255,574 $ 1,235,480 $ 1,225,560 Common shares outstanding 36,988 37,184 37,344 37,515 37,416 Tangible book value per common share (non-GAAP) $ 37.27 $ 37.26 $ 35.02 $ 34.21 $ 33.85 Total assets $ 15,596,431 $ 14,954,125 $ 14,615,666 $ 14,613,338 $ 14,518,590 Less goodwill 365,164 365,164 $ 365,164 365,164 365,164 Less intangible assets 8,484 9,400 $ 10,327 11,271 12,318 Tangible assets (non-GAAP) $ 15,222,783 $ 14,579,561 $ 14,240,175 $ 14,236,903 $ 14,141,108 Tangible common equity to tangible assets (non-GAAP) 9.05 % 9.50 % 9.18 % 9.01 % 8.96 % Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP) 8.71 % 9.26 % 8.82 % 8.68 % 8.67 %       Quarter ended Year ended ($ in thousands) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED EARNINGS PER SHARE Average shareholder’s equity (GAAP) $ 1,844,509 $ 1,804,369 $ 1,748,240 $ 1,738,698 $ 1,652,882 $ 1,784,175 $ 1,623,121 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 8,930 9,855 10,783 11,770 12,858 10,329 14,531 Average tangible common equity (non-GAAP) $ 1,398,427 $ 1,357,362 $ 1,300,305 $ 1,289,776 $ 1,202,872 $ 1,336,694 $ 1,171,438 Net income (GAAP) $ 48,834 $ 50,585 $ 45,446 $ 40,401 $ 44,529 $ 185,266 $ 194,059 FDIC special assessment (after tax) — — — 470 1,814 470 1,814 Core conversion expense (after tax) 1,424 1,034 940 263 — 3,661 — Less gain on sale of investment securities (after tax) — — — — 165 — 452 Less gain (loss) on sale of other real estate owned (after tax) (51 ) 2,375 — (1 ) — 2,323 141 Net income adjusted (non-GAAP) $ 50,309 $ 49,244 $ 46,386 $ 41,135 $ 46,178 $ 187,074 $ 195,280 Less preferred stock dividends 937 938 937 938 937 3,750 3,750 Net income available to common shareholders adjusted (non-GAAP) $ 49,372 $ 48,306 $ 45,449 $ 40,197 $ 45,241 $ 183,324 $ 191,530 Return on average common equity (non-GAAP) 10.75 % 11.40 % 10.68 % 9.52 % 10.94 % 10.60 % 12.27 % Adjusted return on average common equity (non-GAAP) 11.08 % 11.09 % 10.90 % 9.70 % 11.35 % 10.71 % 12.35 % ROATCE (non-GAAP) 13.63 % 14.55 % 13.77 % 12.31 % 14.38 % 13.58 % 16.25 % Adjusted ROATCE (non-GAAP) 14.05 % 14.16 % 14.06 % 12.53 % 14.92 % 13.71 % 16.35 % Average assets $ 15,309,577 $ 14,849,455 $ 14,646,381 $ 14,556,119 $ 14,332,804 $ 14,841,690 $ 13,805,236 Return on average assets (GAAP) 1.27 % 1.36 % 1.25 % 1.12 % 1.23 % 1.25 % 1.41 % Adjusted return on average assets (non-GAAP) 1.31 % 1.32 % 1.27 % 1.14 % 1.28 % 1.26 % 1.41 % Average diluted common shares 37,447 37,483 37,540 37,597 37,554 37,567 37,507 Diluted earnings per share (GAAP) $ 1.28 $ 1.32 $ 1.19 $ 1.05 $ 1.16 $ 4.83 $ 5.07 Adjusted diluted earnings per share (non-GAAP) $ 1.32 $ 1.29 $ 1.21 $ 1.07 $ 1.20 $ 4.88 $ 5.11         Quarter ended Year ended ($ in thousands) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 CALCULATION OF PRE-PROVISION NET REVENUE (PPNR) Net interest income $ 146,370 $ 143,469 $ 140,529 $ 137,728 $ 140,732 $ 568,096 $ 562,592 Noninterest income 20,631 21,420 15,494 12,158 25,452 69,703 68,725 FDIC special assessment — — — 625 2,412 625 2,412 Core conversion expense 1,893 1,375 1,250 350 — 4,868 — Less gain on sale of investment securities — — — — 220 — 601 Less gain (loss) on sale of other real estate owned (68 ) 3,159 — (2 ) — 3,089 187 Less noninterest expense 99,522 98,007 94,017 93,501 92,603 385,047 348,186 PPNR (non-GAAP) $ 69,440 $ 65,098 $ 63,256 $ 57,362 $ 75,773 $ 255,156 $ 284,755         At ($ in thousands) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 ALLOWANCE TO LOANS RATIO EXCLUDING GUARANTEED LOANS Loans $ 11,220,355 $ 11,079,892 $ 11,000,007 $ 11,028,492 $ 10,884,118 Less guaranteed loans 947,665 928,272 923,794 924,633 932,118 Adjusted loans (non-GAAP) $ 10,272,690 $ 10,151,620 $ 10,076,213 $ 10,103,859 $ 9,952,000 Allowance for credit losses $ 137,950 $ 139,778 $ 139,464 $ 135,498 $ 134,771 Allowance for credit losses/loans (GAAP) 1.23 % 1.26 % 1.27 % 1.23 % 1.24 % Allowance for credit losses/adjusted loans (non-GAAP) 1.34 % 1.38 % 1.38 % 1.34 % 1.35 %    

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