8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

Current report pursuant to the

Section 13 or 15(d) of the

Securities and Exchange Act of 1934

April 21, 2003

Date of Report (Date of earliest event reported)

ENTERPRISE FINANCIAL SERVICES CORP

(Exact Name of Registrant as Specified in its Charter)

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

150 N. Meramec, St. Louis, Missouri (Address of Principal Executive Offices) 63105    (Zip Code)

(314) 725-5500

(Registrant’s Telephone Number)

ITEM 7. Financial Statements and Exhibits

(c) Exhibits

The following exhibit is furnished pursuant to Item 12 (reported herein under the Item 9 caption in accordance with the guidance provided in SEC Release Nos. 33-8216; 34-475831, is not to be considered “filed” under the Securities Exchange Act of 1934, as amended (“Exchange Act”), and shall not be incorporated by reference into any of Enterprise Financial Services Corp’s (“Registrant”) previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.

Exhibit No.	Description
99.1	Earnings Release for Quarter Ended 3/31/03

ITEM 9. INFORMATION FURNISHED UNDER ITEM 12 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 21, 2003, Registrant issued an earnings release related to its quarterly period ended March 31, 2003 and the text of that release, as required by Item 12 of Form 8-K, is attached hereto as Exhibit 99.1.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

Date: April 22, 2003

ENTERPRISE FINANCIAL SERVICES CORP

/s/    KEVIN C. EICHNER      

Kevin C. Eichner

Chief Executive Officer

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press Release dated April 21, 2003

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

For more information, contact:

Kevin Eichner (314) 725-5500

Frank Sanfilippo (314) 725-5500, or

Melissa Sturges (816) 235-7733

ENTERPRISE FINANCIAL REPORTS 33.3% INCREASE IN EARNINGS PER

SHARE OVER PREVIOUS YEAR

Net interest income grows 12.3%, noninterest income grows 19.2%

St. Louis, April 21, 2003 – Enterprise Financial Services Corp (OTCBB: EFSC), the parent company of Enterprise Bank and Enterprise Trust, reported net income of $1.1 million or $0.12 per fully diluted share for the three months ended March 31, 2003. For the three months ended March 31, 2002, net income was $871,000 or $0.09 per fully diluted share. The reported earnings per fully diluted share for the first quarter represent a 33.3% increase over the same quarter in 2002.

“We are encouraged to begin 2003 with a strong performance,” said Kevin Eichner, President and CEO of Enterprise Financial. “The environment with the economy, war, and other issues has hardly been favorable, so we are particularly pleased to be able to post these earnings and growth numbers.”

Loans grew by 10% or $62 million since March 31, 2002 and ended the quarter at $712 million. This growth was funded by significant increases in deposits of $92 million or 14%. Net interest income for the first quarter of 2003 was $8.1 million, an $887,000 or 12.3% increase over the same period last year. The net interest rate margin increased to 4.08% from 3.92% due to a better overall earning asset mix and favorable repricing of core deposits.

Total noninterest income grew by 19.2% in the first quarter of 2003 versus the same period in 2002. This $286,000 increase was generated from increases in gains on the sale of mortgage loans, service charges, and securities gains. Heavy refinance volume in the home loan category continues to produce record gains on the sale of mortgage loans and expanded services provided to Enterprise Financial clients and increased deposit accounts drove the service charge gains. Trust and financial advisory performance was also strong in the first quarter of 2003, generating fee income of $589,000. Assets under management continue to grow significantly and were $986 million at March 31, 2003 versus $905 million at March 31, 2002.

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Enterprise Financial Q1 2003 Earnings

First add

The provision for loan losses was $999,000 in the first quarter of 2003 compared to $590,000 in the same period of 2002. This increase was due to $424,000 of net charge-offs on loans during the period (versus $30,000 in the same period last year) and the need to support strong loan growth since the end of 2002. Gross charge-offs were $494,000 and nearly all of those relate to one problem loan relationship. The allowance for loan losses of $9.2 million at March 31, 2003 represents 1.29% of ending portfolio loans. This same ratio was 1.21% at March 31, 2002 and 1.27% at December 31, 2002. Our loan loss experience continues to compare favorably with peer institutions.

As previously announced, on April 4, 2003 Enterprise Bank sold its Humboldt, Chanute and Iola, Kan. branches to Emprise Financial Corporation based in Wichita, Kan. and will realize a $3.1 million pre-tax gain before associated expenses in the second quarter of 2003. Assets of $28.6 million and deposit liabilities of $48.9 million associated with these branches are shown as “held for sale” on Enterprise Financial’s balance sheet at March 31, 2003. This sale will allow for the redeployment of capital and other resources to Enterprise Financial’s more strategic urban markets in St. Louis and Kansas City, Mo.

Expense ratios continue to improve as reduced staffing levels, productivity increases, and business process improvements are implemented. Noninterest expense as a percentage of average assets improved from 3.44% in the first quarter of 2002 to 3.32% in the same quarter for 2003. The efficiency ratio improved from 76.60% to 71.52% in the same periods.

“Enterprise Financial continues to improve its performance in nearly every category. We are encouraged by our progress, the performance of our excellent people, and investors’ continued interest in our stock, which hit a new 52-week high of $14.05 in March and continues at this time to trade in the $13.00 to $14.00 range. This is an increase of over 40% since July 1 of last year,” said CEO Eichner.

Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis and Kansas City, Mo., with a primary focus on serving the needs of privately-held businesses, their owners and other success-minded individuals.

Please refer to Enterprise Financial’s consolidated balance sheets as of March 31, 2003 and 2002 and consolidated statements of operations for the three months ended March 31, 2003 and 2002 attached for more details.

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Enterprise Financial Q1 2003 Earnings

Second and final add

Readers should note that in addition to the historical information contained herein, this press release may contain forward-looking statements which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those contemplated from such statements. Factors that could cause or contribute to such differences include, but are not limited to, burdens imposed by federal and state regulations of banks, credit risk, exposure to local economic conditions, risks associated with rapid increase or decrease in prevailing interest rates and competition from banks and other financial institutions, as well as those in Enterprise Financial’s 2002 Annual Report on Form 10-K.

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ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Consolidated Statements of Operations (unaudited)

(Dollars in thousands, except per share data)

	March 31,
	2003		2002
Interest income:
Interest and fees on loans	$	10,369	$	10,462
Interest on debt securities:
Taxable		467		445
Nontaxable				1
Interest on federal funds sold		38		92
Interest on interest-bearing deposits		—		17
Dividends on equity securities		15		12
Total interest income		10,889		11,029
Interest expense:
Interest-bearing transaction accounts		52		68
Money market accounts		927		1,274
Savings		15		21
Certificates of deposit:
$100,000 and over		668		829
Other		563		1,211
Guaranteed preferred beneficial interests in subordinated debentures		309		259
Notes payable and other borrowed funds		301		200
Total interest expense		2,835		3,862
Net interest income		8,054		7,167
Provision for loan losses		999		590
Net interest income after provision for loan losses		7,055		6,577
Noninterest income:
Service charges on deposit accounts		487		412
Trust and financial advisory income		589		629
Other service charges and fee income		96		91
Gain on sale of mortgage loans		528		360
Gain on sale of securities		78		—
Total noninterest income		1,778		1,492
Noninterest expense:
Salaries		3,763		3,460
Payroll taxes and employee benefits		714		690
Occupancy		476		458
Furniture and equipment		221		252
Data processing		242		253
Other		1,616		1,520
Total noninterest expense		7,032		6,633
Income before income tax expense		1,801		1,436
Income tax expense		666		565
Net income	$	1,135	$	871
Per share amounts
Basic earnings per share		0.12		0.09
Basic weighted average common shares outstanding		9,520,631		9,298,749
Diluted earnings per share		0.12		0.09
Diluted weighted average common shares outstanding		9,825,620		9,577,312

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Consolidated Balance Sheets (unaudited)

(Dollars in thousands, except per share data)

	March 31,
	2003		2002
Assets
Cash and due from banks	$	42,440	$	25,492
Federal funds sold		30,828		11,745
Interest-bearing deposits		93		379
Investments in debt and equity securities:
Available for sale, at estimated fair value		69,365		47,739
Held to maturity, at amortized cost (estimated fair value of $12 at March 31, 2003 and $13 at March 31, 2002)		12		15
Total investments in debt and equity securities		69,377		47,754
Loans held for sale		3,868		2,628
Loans, less unearned loan fees		712,154		650,090
Less allowance for loan losses		9,175		7,856
Loans, net		702,979		642,234
Other real estate owned		450		138
Fixed assets, net		7,427		8,611
Accrued interest receivable		3,656		3,749
Goodwill		2,087		2,087
Assets held for sale		28,633		38,398
Prepaid expenses and other assets		10,459		6,189
Total assets	$	902,297	$	789,404
Liabilities and Shareholders’ Equity
Deposits:
Demand	$	165,465	$	114,698
Interest-bearing transaction accounts		54,286		43,838
Money market accounts		347,500		328,153
Savings		3,673		3,299
Certificates of deposit:
$100,000 and over		117,203		77,076
Other		52,053		81,015
Total deposits		740,180		648,079
Guaranteed preferred beneficial interests in subordinated debentures		15,000		11,000
Federal Home Loan Bank advances		29,433		15,509
Notes payable and other borrowings		2,459		1,867
Accrued interest payable		1,269		1,610
Liabilities held for sale		48,862		56,011
Accounts payable and accrued expenses		4,941		2,757
Total liabilities		842,144		736,833
Shareholders’ equity:
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding 9,538,416 shares at March 31, 2003 and 9,315,451 shares at March 31, 2002		95		93
Surplus		38,867		37,619
Retained earnings		19,618		15,039
Accumulated other comprehensive income		1,573		(180	)
Total shareholders’ equity		60,153		52,571
Total liabilities and shareholders’ equity	$	902,297	$	789,404