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| EX-99.1 - EARNINGS RELEASE - ENTERPRISE FINANCIAL SERVICES CORP | ex991financialstatemen.htm |
| 8-K - 8-K - ENTERPRISE FINANCIAL SERVICES CORP | a202003318kearningsrel.htm |
Exhibit 99.2 Enterprise Financial Services Corp 2020 First Quarter Earnings Webcast
Forward-Looking Statements Some of the information in this report may contain “forward-looking statements” within the meaning of and intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may include projections based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, yields and returns, loan diversification and credit management, shareholder value creation and the impact of acquisitions. Forward-looking statements include, but are not limited to, statements about the Company’s plans, expectations, and projections of future financial and operating results, as well as statements regarding the Company’s plans, objectives, expectations or consequences of announced transactions. The Company uses words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “could,” “continue,” and “intend”, and variations of such words and similar expressions, in this release to identify such forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those contemplated from such statements. The COVID-19 pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways. Other factors that could cause or contribute to such differences include, but are not limited to, the Company’s ability to efficiently integrate acquisitions, including the Trinity acquisition, into its operations, retain the customers of these businesses and grow the acquired operations, as well as credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic conditions, risks associated with rapid increases or decreases in prevailing interest rates, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in regulatory requirements, changes in accounting policies and practices or accounting standards, including ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments,” commonly referenced as the Current Expected Credit Loss (“CECL”) model, which changed how we estimate credit losses and may increase the required level of our allowance for credit losses after adoption on January 1, 2020, uncertainty regarding the future of LIBOR, natural disasters, war or terrorist activities, or pandemics, or the outbreak of COVID-19 or similar outbreaks, and their effects on economic and business environments in which we operate, as well as other risk factors described in the Company’s 2019 Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission (the “SEC”). Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events unless required under the federal securities laws. 2
Timeline of Actions: Key Milestones MONITOR & PLANIMPLEMENTATION ACTIVATION JAN. 23 FEB. 27 MAR. 10 MAR. 23 APR. 3 Discussions begin Developed COVID‐19 Restricted travel and Various internal Bank launches about virus Communication and began canceling in‐person controls adjusted for SBA Paycheck Action Plan Taskforce meetings and events further contingencies Protection Program (CAP Taskforce) MAR. 2 Public Health Emergency Declared JAN. 27 MAR. 4 MAR. 30 APR 10 COVID‐19 communication Measures including MAR. 15 Bank launches bank Bank launches begins with associates; restricted travel to Business travel ban sponsored loan associate relief marketing begins conferences and social and work‐ from‐home deferment programs program through developing messages distancing guidelines mandate for clients foundation 3
Associate Protection & Assistance Regular pay for associates unable to work from home due to COVID‐ 19 related illness, caring for ill family member or childcare school closures Enterprise Bank & Trust Foundation’s Health benefits expanded to cover COVID‐19 related issues Enterprise Cares: Associate Support Fund Premium Pay for retail associates working in roles that require direct physical contact with clients or in the office working closely with others Providing short‐term financial Drive thru only (except 5 locations) to reduce potential COVID‐19 assistance to associates and exposure for associates their families who have been affected by COVID‐19 pandemic. Virtual recognition program launched for peer‐to‐peer recognition Weekly 401(k) webinars being conducted for our associates by Wealth Management Promotion of Employee Assistance Program (EAP) benefit for confidential associate support by phone or video 4
Community and Client Programs Programs launched As a preferred provider of SBA Section 7(a) loans, we provided to provide temporary a live client virtual event to walk through SBA Loan Relief Programs. (2,500 attendees, 500+ webinar downloads) relief for those hit hard by the pandemic Donated $50,000 in the St. Louis Small Business Relief Fund set up by St. Louis County, City and the Economic Development Partnership. • Consumer Loan Deferral Program Continuing to provide Enterprise University courses online, Defer monthly payment for business leaders to have continued access to industry expertise, • Small Business Loan Program at no cost, during this time. Fixed‐rate working line of credit up to $25,000 Offering clients virtual networking, crisis communication education, • Commercial Loan Program and access to a growing resource catalog of best practices provided by Custom programs by request business leaders across the region. • Credit Card Skip‐A‐Pay Program 5
Mission and Vision Our Mission Guiding people to a lifetime of financial success Our Vision To be a company where our associates are proud to work, that delivers ease of navigation to our customers and value to our investors, while helping our communities flourish 6
Total Loan Trends In Millions 9% Total Loan Growth $5,458 $5,314 $5,228 $5,149 $5,017 Q1' 19 Q2' 19 Q3' 19 Q4' 19 Q1' 20 7
Commercial & Industrial Loan Trends 11% C&I Growth In Millions $2,469 $2,361 $2,303 $2,265 $2,227 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 8
Loan Details Q1 ’20 Q4 ’19 QTR Q1 ’19 LTM In Millions Change Change C&I - General $ 1,186 $ 1,187 $ (1) $ 1,129 $ 57 CRE, Investor Owned - General 1,319 1,290 29 1,183 136 CRE, Owner Occupied - General 585 582 3 576 9 Enterprise Value Lending1 441 429 12 440 1 Life Insurance Premium Financing1 497 473 24 441 56 Residential Real Estate - General 346 366 (20) 433 (87) Construction and Land Development - General 446 429 17 345 101 Tax Credits1 354 294 60 235 119 Agriculture1 168 140 28 126 42 Consumer & Other - General 116 124 (8) 109 7 Total Loans $ 5,458 $ 5,314 $ 144 $ 5,017 $ 441 1Specialized categories may include a mix of C&I, CRE, Construction and land development, or Consumer & Other loans. 9
Total Loans By Business Unit In Millions Specialized Lending St.Louis Kansas City $2,463 $2,568 $1,003 $1,039 $2,273 $832 $979 $730 $816 Q1 '19 Q4 '19 Q1 '20 Q1 '19 Q4 '19 Q1 '20 Q1 '19 Q4 '19 Q1 '20 Arizona New Mexico $682 $640 $636 $353 $392 $383 Q1 '19 Q4 '19 Q1 '20 Q1 '19 Q4 '19 Q1 '20 10
Deposit Trend 23.0% 23.0% 22.6% 21.4% 21.3% $5,990 In Millions $5,771 $5,624 $5,537 $5,559 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Deposits Noninterest-bearing % u Last Twelve Months Growth Rate = 8% 11
SBA Paycheck Protection Program (PPP) Enterprise is proud to support our small business clients impacted by the COVID‐19 pandemic through participation in the SBA PPP. Processed over 1,500 applications from small business owners Our Focus Dedicated team of our most experienced associates focused since April 3 on the PPP loan process We are committed to getting loans for applicants approved and funded as quickly and Centralized process created with assembly line to efficiently as possible. isolate touchpoints and process loans efficiently Streamlining the procedures wherever possible Website resources page addresses the most frequently asked question we’re receiving along with frequent updates 12 5
Loan Portfolio Loans by Product Type Loans by Industry Type Other Services CRE 34.9% 28.2% Accommodation & Food Service 5.4% Real Estate/ Construction 8.2% Rental/Leasing Wholesale Trade 28.9% 6.0% Residential 6.3% Other Services 7.0% Consumer 2.1% Finance and C&I 21.7% Manufacturing 7.8% Insurance EVL 8.1% 16.7% LIPF 9.1% Agriculture 3.1% Tax Credit 6.5% LIBOR Fixed 48.5% 40.5% Loans by Total $5.5 Billion Rate Type Other Adjustable Prime 4.2% 6.8% 13
C&I and Commercial Real Estate by Industry C&I Loans by Industry Investor Owned CRE Loans by Industry Accommodation, Other Finance and Food Service 24.4% Insurance 10.5% 34.7% Health Care, Retail Trade Total Real Estate/ Total Social Assistance 4.5% $2.5 Billion Rental/Leasing $1.3 Billion 6.1% Real 77.5% Estate/Rental/ Other Leasing 5.9% 5.7% Manufacturing 14.1% Professional Services Wholesale Trade 7.0% 9.6% Construction Other 28.2% 6.4% Owner Occupied CRE Manufacturing Total Real Estate/Rental/Leasing Loans by Industry 7.8% $721 Million 17.6% Wholesale Trade 7.8% Retail Trade Agricultural 16.9% 15.3% 14
Enterprise Value Lending (EVL) Total $441 Million EVL Loans by Industry EVL Loans by Location Southeast Other Manufacturing 21.0% 17.1% 34.4% Midwest 40.0% Arts & West Entertainment Professional 11.0% 4.0% Technical Construction 15.1% 4.8% Northeast 16.0% Wholesale Southwest Waste Management 12.0% 10.1% Trade 14.5% Internally reviewed 100% of the portfolio to identify businesses most at risk for impacts from COVID‐19. EVL Loans by Size $ In Millions External review contracted for 2nd quarter 2020. Size Number of Loans Balance Average Balance 30% of the portfolio is secured by borrowing bases > $10 Million 4 $67.1 $16.8 60% of the portfolio has recently been approved for PPP funding. $5‐10 Million 19 128.7 6.7 $2‐5 Million 50 153.0 3.1 90% of the portfolio is sponsored by a Small Business Investment Company (“SBIC”) licensed by the SBA < $2 Million 108 92.0 0.9 Total 181 $440.8 $2.4 Top 10 Sponsors make up half of the EVL portfolio Average 8‐year relationship and 10 deals 15
Hospitality Loans Total $358 Million Hospitality Loans by Product Type Hospitality Loans by Subsector Commercial Real Estate Hotels and 55.1% Campgrounds C&I 61.0% 14.0% Tax Credits 3.9% Food and Drink EVL 4.9% Amusement, Construction Services Gambling, and 22.1% 20.9% Recreation 18.1% Hospitality Loans by Size $ In Millions Internally reviewed 99% of hotel portfolio and 71% of restaurants Size Number of Loans Balance Average Balance Average LTV between 60‐62% > $10 Million 5 $64.7 $12.9 86% of committed exposure for hotels and 40% for restaurants $5‐10 Million 20 132.5 6.6 have full recourse $2‐5 Million 25 83.7 3.4 42% of restaurants by two borrowers, both of which have been < $2 Million 223 77.3 0.3 approved for PPP loans Total 273 $358.2 $1.3 16
Energy-Related Loans Total $140 Million Energy‐Related Loans by Product Type Energy‐Related Loans by Subsector Merchant Aircraft C&I Wholesaler 3.4% 53.6% Professional 31.7% 3.4% EVL 12.4% Other 9.2% Manufacturing Residential/ 22.4% Consumer Utilities 0.7% 7.6% Construction Transportation CRE 24.2% 5.7% /Warehousing Gas Stations 15.3% 10.4% Energy Loans by Size $ In Millions Internally reviewed 82% of portfolio Size Number of Loans Balance Average Balance 76% of committed exposure has full recourse > $10 Million 1 $10.2 $10.3 Diversified with distribution, wholesaling, rail transportation, $5‐10 Million 4 23.3 5.8 pipe coating and convenience stores with gas pumps. $2‐5 Million 19 64.6 3.4 Enterprise does not have loans to oil or gas producers. < $2 Million 62 42.0 0.7 Total 86 $140.1 $1.6 17
Agricultural Lending Total $168 Million Agricultural Lending Agricultural Lending Hog & Pig C&I Farming 20.2% Other 28.3% 10.4% CRE ‐ Owner Misc Crop Corn Farming Occupied 21.5% 79.8% 10.0% Soybean Farming 5.6% Beef Cattle Dairy Cattle 18.3% 5.9% Agricultural Loans by Size $ In Millions Experienced farming operations, well secured by Size Number of Loans Balance Average Balance Accounts Receivable $5‐10 Million 5 $37.2 $7.5 Livestock $2‐5 Million 20 62.6 3.1 Real Estate < $2 Million 145 68.4 0.5 Total Diversified portfolio generally supported by production 170 $168.2 $1.0 contracts and hedge strategies 18
Auto Dealer & Aircraft Lending Total $175 Million Auto Dealer & Aircraft Auto Dealer & Aircraft Lending Aircraft Finance 53.5% Other 9.0% C&I Manufacturing 2.7% 4.4% Transportation & Warehousing Retail Trade 4.8% 75.5% CRE‐Owner Occupied Real Estate, 43.8% Rental, Leasing 6.3% Auto Dealer & Aircraft Lending $ In Millions Internally reviewed 81% of portfolio Auto Dealers are primarily secured by real estate, i.e. no Size Number of Loans Balance Average Balance floor‐plan loans > $10 Million 2 $28.2 $14.1 90% of committed exposure has full recourse $5‐10 Million 5 29.3 5.9 Aircraft lending, $93.2 Million $2‐5 Million 19 63.3 3.3 Advance rate 70‐75% of retail value < $2 Million 74 53.8 0.7 Total 100 $174.6 $1.7 Personal recourse from owners, with a typical short‐term 6‐month facility 19
Loans Secured by Marketable Securities Total $609 Million Marketable Security Loans by Type Marketable Security Loans by Subsector Agricultural 1.2% Other C&I 11.4% 9.6% Finance & Other Insurance 5.7% Management 6.0% 82.6% CRE‐Investor Owned Life Insurance 1.9% Premium Finance 81.6% Marketable Security Loans by Size $ In Millions Reviewed 80% of the non‐LIPF portfolio Size Number of Loans Balance Average Balance Currently showing a minimal margin shortfall > $10 Million 13 $192.0 $14.8 LIPF Portfolio $5‐10 Million 26 193.7 7.5 The life insurance policies financed have an earnings $2‐5 Million 43 140.8 3.3 floor of 0%, and therefore cannot lose value. Enterprise < $2 Million 159 82.0 0.5 does not finance variable policies that may lose value. Total 241 $608.5 $2.5 20
Earnings Per Share Trend - Q1 2020 Change in EPS $0.03 $0.02 $1.09 $0.01 $(0.63) $(0.03) $(0.01) $0.48 Q4 '19 Net Interest Incremental Credit Loss Noninterest Noninterest Change in Q1 '20 Income Accretion Provision Income Expense Shares/ ETR 21
Net Interest Income Trend 3.79% 3.80% 3.69% 3.64% 3.71% In Millions $63.4 $61.7 $63.0 $61.6 $60.8 $60.9 $61.0 $62.1 $52.3 $51.2 21% Core NII Growth Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Core Net Interest Income* Incremental Accretion On Non-core Acquired Assets FTECore Net Interest Margin* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 22
CECL Impact Allowance for Reserve for Classified Unfunded Nonperforming Loan Losses Loans Assets In Thousands Commitments Balance, 12/31/2019 $ 43,288 $ 430 $ 26,425 $ 85,897 CECL adoption1 28,387 2,413 8,462 25,819 PCD loans immediately ) ) ) charged-off2 (1,680 — (1,680 (1,680 Balance, 1/1/2020 69,995 2,843 33,207 110,036 Provision for credit losses 21,695 849 — — Net recoveries 497 — — — Net increase (decrease) — — 3,997 (5,282) Balance, 3/31/2020 $ 92,187 $ 3,692 $ 37,204 $ 104,754 1 Loan balances at March 31, 2020 2 Under the Company’s credit policy, nonaccrual loans less than $100,000 are immediately charged-off. 23
Credit Trends for Loans Net Charge-offs (annualized) Total Loan Growth (1) In Millions 53.2% 55.3% 44.3% 46.2% 47.3% $132 $143 19bps 16 bps $79 $86 8bps 8 bps 9 bps $(15) Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Growth Line Draw % Provision for Credit Losses In Millions EFSC Q1 '20 Q4 '19 $22.3 NPAs/Assets = 0.56% 0.45% NPLs/Loans = 0.68% 0.50% ALLL/NPLs = 247.8% 163.8% $1.5 $1.7 $1.8 $1.3 ALLL/Loans = 1.69% 0.81% Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 (1) Excludes Trinity in Q1 '19 24
Noninterest Income Trend In Millions Fee Income Other Fee Income Detail $14.4 $13.6 $13.4 $1.2 $12.0 $3.4 $2.0 $0.6 $4.0 $4.0 $3.6 $2.9 $9.2 $2.7 $3.6 $1.0 $0.2 $0.2 $0.2 $2.9 $2.4 $0.2 $2.7 $2.3 $2.5 $2.4 $0.4 $0.2 $2.2 $1.1 $2.3 $0.2 $0.2 $0.4 $1.8 $0.3 $0.4 $0.2 $0.1 $0.3 $0.8 $3.4 $3.2 $3.3 $3.1 $0.2 $2.9 $2.4 $1.9 $2.1 $1.4 $1.3 $2.7 $2.7 $2.0 $2.6 $2.5 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Wealth Management Deposit Services Charge Miscellaneous Swap Fees Card Services Other CDE Mortgage Tax Credit Income Non-core Acquired 25
Operating Expenses Trend 54.1% 53.3% 51.7% 50.7% 51.2% In Millions $49.1 $10.3 $39.8 $38.2 $38.4 $38.7 $7.3 $0.4 $20.7 $20.8 $20.4 $21.7 $19.4 $3.2 $3.2 $3.5 $3.3 $2.6 $14.9 $13.8 $14.5 $13.7 $10.5 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Other Occupancy Employee compensation and benefits Merger-related expenses/other non-core expenses Core efficiency ratio* Note: * A Non-GAAP Measure, Refer to Appendix for Reconciliation 26
Capital Tangible Common Equity/Tangible Assets* Q1 2020 Holding Company Capital Uses (Annualized) In Thousands $19,076 8.89% $14,496 8.35% 8.43% 8.54% 8.42% Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Debt Service Dividends Regulatory Capital 12.86% 12.62% 12.72% 12.90% 12.85% 10.00% 11.25% 11.06% 11.17% 11.40% 11.03% CET1 Holding Company liquidity position 9.64% 9.51% 9.64% 9.90% 9.58% 8.00% continues to support our strategic Tier 1 6.50% capital planning initiatives, including Total Risk Based Capital debt service and our dividend program. Well Capitalized ' Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 *A Non-GAAP Measure, Refer to Appendix for Reconciliation 27
First Quarter 2020 Earnings Webcast Appendix
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 adjusted EPS, core net interest income, core net interest margin, tangible common equity, core efficiency ratios, ROATCE, adjusted ROAA, adjusted ROAE, and adjusted ROATCE, and the tangible common equity ratio, in this release that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. The Company considers its adjusted EPS, core net interest income, core net interest margin, core efficiency ratio, adjusted ROAA, adjusted ROAE, ROATCE, adjusted ROATCE, and the tangible common equity ratio, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of non-core acquired loans, which were acquired from the FDIC and previously covered by loss share agreements, and the related income and expenses, the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures include contractual interest on non-core acquired loans, but exclude incremental accretion on these loans. Core performance measures also exclude expenses directly related to non-core acquired loans. Core performance measures also exclude certain other income and expense items, such as merger related expenses, facilities charges, and the gain or loss on sale of investment securities, the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject. The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated. Peer group data consists of the median of publicly traded banks with total assets from $2-$10 billion with commercial loans greater than 20% and consumer loans less than 10%. 29
Reconciliation of Non-GAAP Financial Measures Quarter ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in thousands) 2020 2019 2019 2019 2019 CORE PERFORMANCE MEASURES Net interest income $ 63,368 $ 61,613 $ 63,046 $ 61,715 $ 52,343 Less: Incremental accretion income 1,273 576 2,140 910 1,157 Core net interest income 62,095 61,037 60,906 60,805 51,186 Total noninterest income 13,408 14,418 13,564 11,964 9,230 Less: Other income from non-core acquired assets — 4 1,001 2 365 Less: Gain on sale of investment securities 4 (94) 337 — — Less: Other non-core income — — — 266 — Core noninterest income 13,404 14,508 12,226 11,696 8,865 Total core revenue 75,499 75,545 73,132 72,501 60,051 Total noninterest expense 38,673 38,354 38,239 49,054 39,838 Less: Other expenses related to non-core acquired loans 12 33 18 103 103 Less: Merger related expenses — — 393 10,306 7,270 Core noninterest expense 38,661 38,321 37,828 38,645 32,465 Core efficiency ratio 51.21% 50.73% 51.73% 53.30% 54.06% NET INTEREST MARGIN TO CORE NET INTEREST MARGIN (TAX EQUIVALENT) Net interest income $ 63,978 $ 62,141 $ 63,483 $ 62,109 $ 52,595 Less: Incremental accretion income 1,273 576 2,140 910 1,157 Core net interest income $ 62,705 $ 61,565 $ 61,343 $ 61,199 $ 51,438 Average earning assets $ 6,791,459 $ 6,704,506 $ 6,604,083 $ 6,453,005 $ 5,510,489 Reported net interest margin 3.79% 3.68% 3.81% 3.86% 3.87% Core net interest margin 3.71 3.64 3.69 3.80 3.79 30
Reconciliation of Non-GAAP Financial Measures Quarter ended Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in thousands) 2020 2019 2019 2019 2019 SHAREHOLDERS’ EQUITY TO TANGIBLE COMMON EQUITY AND TOTAL ASSETS TO TANGIBLE ASSETS Shareholders’ equity $ 846,436 $ 867,185 $ 846,095 $ 825,501 $ 797,835 Less: Goodwill 210,344 210,344 211,251 211,251 207,632 Less: Intangible assets 24,585 26,076 27,626 29,201 31,048 Tangible common equity $ 611,507 $ 630,765 $ 607,218 $ 585,049 $ 559,155 Total assets $ 7,500,643 $ 7,333,791 $ 7,346,791 $ 7,181,855 $ 6,932,757 Less: Goodwill 210,344 210,344 211,251 211,251 207,632 Less: Intangible assets 24,585 26,076 27,626 29,201 31,048 Tangible assets $ 7,265,714 $ 7,097,371 $ 7,107,914 $ 6,941,403 $ 6,694,077 Tangible common equity to tangible assets 8.42% 8.89% 8.54% 8.43% 8.35% 31
First Quarter 2020 Earnings Webcast Q & A