About Enterprise Financial Services Corp

Enterprise Financial Services Corp (EFSC) operates as a financial holding company. EFSC is the holding company for Enterprise Bank & Trust, a full-service financial institution offering banking and wealth management services to individuals and corporate customers primarily located in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, in addition to loan and deposit production offices throughout the United States. The company offers a broad range of business and personal banking services, including wealth management services provided through Enterprise Trust. Lending services include C&I, CRE, real estate construction and development, residential real estate, SBA, consumer and other loan products. A wide variety of deposit products, including property management and community associations along with a complete suite of treasury management and international trade services for operating businesses, complement the company’s lending capabilities. The company’s growth strategy is first and foremost client relationship driven. The company continuously seeks to add clients who fit the company’s target market of businesses, business owners, professionals, and associated relationships. Those relationships are maintained, cultivated, and expanded over time by experienced banking officers and other trained professionals. The company funds loan growth primarily with core deposits from the company’s business and professional clients in addition to consumers in the company’s branch market areas. This is supplemented by borrowing or other deposit sources, including advances from the FHLB and brokered certificates of deposits. Specialized Lending and Product Niches – The company has focused its lending activities in specialty markets where the company’s expertise and experience as a commercial lender provides advantages over other competitors. In addition, the company has developed expertise in certain product niches. These specialty niche activities focus on the following areas: SBA 7(a). The company has a team of experienced bankers in production offices across the country that originate loans through the SBA 7(a) program. These loans are primarily owner-occupied, commercial real estate loans secured by a first lien. These loans predominantly have a 75% portion guaranteed by the SBA. By focusing on this specific product type, the company has developed an expertise that differentiates the company based upon speed and reliability of execution. Life Insurance Premium Finance. The company specializes in financing whole life insurance premiums utilized in high net worth estate planning through relationships with boutique estate planners throughout the United States. Sponsor Finance. The company supports mid-market company mergers and acquisitions in many domestic markets. The company markets directly to targeted private equity firms, principally SBICs, and provides primarily senior debt financing to the portfolio companies. In addition, the company has both financing and depository relationships with the sponsors of the portfolio companies. Tax Credit Related Lending. The company is a secured lender on affordable housing projects funded through the use of federal and state low income housing tax credits. In addition, the company provides leveraged and other loans on projects funded through the U.S. Department of the Treasury Community Development Financial Institution (‘ Treasury CDFI’) New Markets Tax Credit (‘NMTC’) Program. The company will continue to participate in the application process for future awards, as well as serve as a secured lender to other allocatees. Tax Credit Brokerage. The company has a minority ownership in a partnership that acquires, invests and sells, state low income housing tax credits. The company lends the partnership money with 6 - 12 year terms and receives interest income and fee income as projects close or credits are sold. Specialty Deposits – In addition to commercial operating accounts for the company’s C&I customers, the company offers specialty deposit accounts to customers in certain industries with complex account needs. The company’s focus areas include community associations, property management, third party escrow, and trust services. These accounts are primarily demand accounts. Fee Income Business – The company offers a broad range of treasury management products and services that benefit businesses ranging from large national clients to local businesses. Customized solutions and special product bundles are available to clients of all sizes. In response to ever increasing needs for data/information security and functional efficiency, the company continues to offer cash management systems that employ mobile technology and fraud detection/mitigation services. Enterprise Trust offers a wide range of fiduciary, investment management, and financial advisory services to facilitate providing these services. The company also offers customer hedging products, international banking, card services and tax credit businesses that generate fee income. The company also invests in certain private equity and SBIC investments that generate additional fee income. Use of technology – Clients access the company’s products and services both in physical branch locations as well as remotely. The company offers online, device applications, text and voice banking in addition to a variety of ‘on site’ hardware and software solutions, such as remote deposit capture. These portals facilitate access to the commercial and consumer products the company offers, such as internet banking, mobile banking, cash management products, remote deposit capture, positive pay services, fraud detection and prevention, automated payables, check image, and statement and document imaging. Additional service offerings supported by the bank include controlled disbursements, repurchase agreements, and sweep investment accounts. The company’s cash management suite of products blends technology and personal service. Technology products are also extensively utilized within the organization by associates in all lines of business, including operations and support, customer service, and financial reporting for internal management purposes and for external compliance. The company has begun the process of converting its primary operating system to a leading core solution, and plan to implement the new core in late 2024. Investments As of December 31, 2023, the company’s portfolio of investment securities was obligations of U.S. Government sponsored enterprises; obligations of states and political subdivisions; agency mortgage-backed securities; U.S. treasury bills; and corporate debt securities. Deposits As of December 31, 2023, the company’s deposits were noninterest-bearing demand accounts; interest-bearing demand accounts; money market accounts; savings accounts; and certificates of deposit, such as brokered and customer. Supervision and Regulation The company is a financial holding company registered under the BHCA and is subject to regulation, supervision and examination by the Federal Reserve. The bank is a Missouri trust company with banking powers and is subject to supervision and regulation by the Missouri Division of Finance. In addition, as a Federal Reserve non-member bank, the bank is subject to supervision and regulation by the FDIC. The company has securities registered with the SEC under the Securities Exchange Act of 1934, as amended. As a financial holding company, the company is subject to regulation and examination by the Federal Reserve, and is required to file periodic reports of its operations and such additional information as the Federal Reserve may require. In order to remain a financial holding company, the company must continue to be considered well-managed and well-capitalized by the Federal Reserve, and the bank must continue to be considered well-managed and well-capitalized by the FDIC, and have at least a ‘satisfactory’ rating under the CRA. In connection with their supervision and regulation responsibilities, the bank is subject to periodic examination by the FDIC and Missouri Division of Finance. The bank is required to comply with the FDIC’s capital adequacy standards for insured banks. The Dodd-Frank Act centralized responsibility for consumer financial protection including implementing, examining and enforcing compliance with federal consumer financial laws with the CFPB. Depository institutions with more than $10 billion in assets, such as the bank, are subject to examination by the CFPB. The bank is also subject to other laws and regulations intended to protect consumers in transactions with depository institutions, as well as other laws or regulations affecting customers of financial institutions generally. While the list set forth herein is not exhaustive, these laws and regulations include the Truth in Lending Act, the Truth in Savings Act, the Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Real Estate Settlement and Procedures Act, the Fair Credit Reporting Act and the Federal Trade Commission Act, among others. The bank is subject to the provisions of Regulation W promulgated by the Federal Reserve, which encompasses Sections 23A and 23B of the Federal Reserve Act. The bank has a satisfactory rating under CRA. History Enterprise Financial Services Corp was founded in 1988. The company was incorporated under Delaware law in 1994.