PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Total assets increased driven by net loan growth, while net income for the six months ended June 30, 2024, decreased primarily due to rising interest expense [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to **$14.62 billion** driven by a **$111.2 million** increase in net loans, with deposits and shareholders' equity also rising Condensed Consolidated Balance Sheet Highlights ($ in thousands) | Balance Sheet Item | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Total Loans, Net | $10,860,543 | $10,749,347 | ▲ $111,196 | | Total Assets | $14,615,666 | $14,518,590 | ▲ $97,076 | | Total Deposits | $12,282,383 | $12,176,371 | ▲ $106,012 | | Total Liabilities | $12,860,393 | $12,802,522 | ▲ $57,871 | | Total Shareholders' Equity | $1,755,273 | $1,716,068 | ▲ $39,205 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income for Q2 2024 was **$45.4 million**, while the six-month net income decreased to **$85.8 million** due to a significant rise in interest expense Key Income Statement Data ($ in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $140,529 | $140,692 | $278,257 | $280,221 | | Provision for Credit Losses | $4,819 | $6,339 | $10,575 | $10,522 | | Noninterest Income | $15,494 | $14,290 | $27,652 | $31,188 | | Noninterest Expense | $94,017 | $85,956 | $187,518 | $166,939 | | Net Income | $45,446 | $49,127 | $85,847 | $104,865 | | Diluted EPS | $1.19 | $1.29 | $2.24 | $2.75 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$106.4 million**, while investing activities used **$180.6 million**, resulting in an overall **$40.3 million** decrease in cash Net Cash Flow Summary - Six Months Ended June 30 ($ in thousands) | Cash Flow Category | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $106,397 | $139,786 | | Net Cash from Investing Activities | ($180,571) | ($804,207) | | Net Cash from Financing Activities | $33,920 | $695,085 | | **Net (Decrease) Increase in Cash** | **($40,254)** | **$30,664** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, investment portfolio unrealized losses, stable loan portfolio credit quality, and derivative usage for hedging - The company is a financial holding company providing banking and wealth management services primarily in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico[24](index=24&type=chunk) - The company adopted ASU 2022-03 and ASU 2023-02, which did not have a material effect on the consolidated financial statements. The company is still evaluating the impact of ASUs 2023-07 and 2023-09 related to segment and income tax disclosures[28](index=28&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports stable financial condition with **$14.6 billion** in assets, strong asset quality, robust liquidity, and capital ratios exceeding 'well-capitalized' levels, despite net interest margin compression from rising deposit costs [Executive Summary](index=41&type=section&id=Executive%20Summary) Q2 2024 net income was **$45.4 million** with a **4.19%** net interest margin, while loans and deposits grew, and asset quality and capital ratios remained strong Q2 2024 Performance Highlights | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Diluted EPS | $1.19 | $1.05 | $1.29 | | Net Interest Margin (tax equivalent) | 4.19% | 4.13% | 4.49% | | Return on Average Assets | 1.25% | 1.12% | 1.44% | | Nonperforming Loans to Total Loans | 0.36% | 0.32% | 0.15% | - Total loans increased by **1.06%** to **$11.0 billion** at June 30, 2024, from December 31, 2023[110](index=110&type=chunk) - Total deposits increased by **$106.0 million** to **$12.3 billion**. Noninterest-bearing deposits constituted **32.0%** of total deposits[112](index=112&type=chunk) - The tangible common equity to tangible assets ratio was **9.18%** at June 30, 2024, up from **8.96%** at December 31, 2023[112](index=112&type=chunk) [Results of Operations](index=45&type=section&id=Results%20of%20Operations) Q2 2024 net interest income was **$140.5 million** with a **4.19%** net interest margin, impacted by higher deposit costs, while noninterest income increased and noninterest expense remained stable - Net interest margin (NIM) was **4.19%** in Q2 2024, an increase of **6 basis points** from the linked quarter, but a decrease of **44 basis points** from the prior year-to-date period, reflecting pressure from higher deposit costs[124](index=124&type=chunk) - Noninterest income for Q2 2024 increased by **$3.3 million** from the linked quarter, primarily due to a **$4.1 million** increase in tax credit income[126](index=126&type=chunk) - Noninterest expense for the first six months of 2024 increased by **$20.6 million** from the prior year, mainly due to a **$12.3 million** increase in variable deposit costs and a **$5.6 million** increase in employee compensation[129](index=129&type=chunk)[130](index=130&type=chunk) - The effective tax rate for the first six months of 2024 was **20.4%**, down from **21.7%** in the prior year-to-date period, driven by tax credit opportunities[131](index=131&type=chunk) [Financial Condition](index=51&type=section&id=Financial%20Condition) Total assets were **$14.6 billion** with loan portfolio growth to **$11.0 billion**, while asset quality remained strong despite **$242.2 million** in investment portfolio unrealized losses Loan Portfolio Composition ($ in thousands) | Loan Type | June 30, 2024 | Dec 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Commercial and industrial | $4,619,448 | $4,672,559 | ▼ (1)% | | Commercial real estate - investor owned | $2,468,241 | $2,451,953 | ▲ 1% | | Commercial real estate - owner occupied | $2,388,510 | $2,351,618 | ▲ 2% | | Construction and land development | $893,672 | $760,425 | ▲ 18% | | **Total Loans** | **$11,000,007** | **$10,884,118** | **▲ 1%** | Asset Quality Metrics | Metric | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Nonperforming Loans ($ in thousands) | $39,384 | $43,728 | | Nonperforming Assets to Total Assets | 0.33% | 0.34% | | ACL on Loans to Total Loans | 1.27% | 1.24% | - Deposits from specialty verticals (property management, community associations, escrow) grew to **$3.0 billion** from **$2.8 billion** at year-end 2023[151](index=151&type=chunk) - Estimated uninsured/uncollateralized deposits totaled **$3.6 billion**, or **29%** of total deposits, down from **31%** at year-end 2023[153](index=153&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$5.6 billion** in available sources and robust capital ratios exceeding 'well-capitalized' regulatory requirements Available Liquidity Sources (June 30, 2024, $ in thousands) | Source | Amount | | :--- | :--- | | Federal Reserve Bank borrowing capacity | $2,610,652 | | FHLB borrowing capacity | $1,230,978 | | Unpledged securities | $1,162,838 | | Federal funds lines | $140,000 | | Cash and interest-bearing deposits | $392,775 | | **Total** | **$5,562,243** | Regulatory Capital Ratios (EFSC) | Ratio | June 30, 2024 | Minimum with CCB | | :--- | :--- | :--- | | Common Equity Tier 1 | 11.7% | 7.0% | | Tier 1 Capital | 13.0% | 8.5% | | Total Capital | 14.6% | 10.5% | | Leverage Ratio | 11.1% | N/A | - The company has **$2.8 billion** in unused commitments to extend credit as of June 30, 2024[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk, showing asset sensitivity where a **100 basis point** rate increase boosts net interest income by **3.8%**, while actively transitioning variable-rate loans from LIBOR to SOFR Net Interest Income Sensitivity (at June 30, 2024) | Rate Shock | Annual % Change in Net Interest Income | | :--- | :--- | | +300 bp | 11.1% | | +100 bp | 3.8% | | -100 bp | (3.9)% | | -300 bp | (12.4)% | - The company has ceased using LIBOR in new contracts and selected SOFR as the replacement index for the majority of its variable rate loans[185](index=185&type=chunk) - At June 30, 2024, the company had **$6.7 billion** in variable rate loans, of which **$3.1 billion** were indexed to SOFR and **$2.8 billion** to the prime rate[186](index=186&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of June 30, 2024[190](index=190&type=chunk) - No changes were made during the quarter that materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting[191](index=191&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, none of which are expected to have a material adverse effect on its financial condition or operations - Management believes there are no pending or threatened legal proceedings that would have a material adverse effect on the business, financial condition, or results of operations[193](index=193&type=chunk)[194](index=194&type=chunk) [Item 1A. Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - There have been no material changes to the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023[196](index=196&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2024, the company repurchased **225,135** common shares at a weighted-average price of **$38.07**, with **1,774,865** shares remaining for repurchase Issuer Purchases of Equity Securities (Q2 2024) | Period | Total Shares Purchased | Weighted-Average Price Paid | Shares Remaining in Plan | | :--- | :--- | :--- | :--- | | April 2024 | 36,214 | $37.89 | 1,963,786 | | May 2024 | 29,323 | $38.00 | 1,934,463 | | June 2024 | 159,598 | $38.13 | 1,774,865 | | **Total** | **225,135** | **$38.07** | **1,774,865** | [Item 5. Other Information](index=66&type=section&id=Item%205.%20Other%20Information) No officer or director adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2024 - No officer or director adopted or terminated a Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement during the quarter[203](index=203&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024. ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission file number 001-15373 Incorporated in the State of Delaware I.R.S. Employer Identification # 43-1706259 Address: 150 North Meramec Clayton, MO ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 001-15373 ENTERPRISE FINANCIAL SERVICES CORP (Exact name of registrant as specified in its charter) (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023. ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission file number 001-15373 ENTERPRISE FINANCIAL SERVICES CORP Incorporated in the State of Delaware I.R.S. Employer Identification # 43-1706259 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023. ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission file number 001-15373 ENTERPRISE FINANCIAL SERVICES CORP Incorporated in the State of Delaware I.R.S. Employer Identification # 43-1706259 Addr ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023. ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission file number 001-15373 ENTERPRISE FINANCIAL SERVICES CORP Incorporated in the State of Delaware I.R.S. Employer Identification # 43-1706259 Add ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number: 001-15373 ENTERPRISE FINANCIAL SERVICES CORP (Exact name of registrant as specified in its charter) Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 (State or ...