10-Q

UNITEDSTATES

SECURITIES ANDEXCHANGECOMMISSION

WASHINGTON,D.C. 20549

FORM 10-Q

[X]	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2013.
[   ]	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

Address: 150 North Meramec

Clayton, MO 63105

Telephone: (314) 725-5500

___________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes [X]  No [   ] 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files ). Yes [X]  No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer R	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes [   ]  No [X]

As of October 31, 2013, the Registrant had 19,276,365 shares of outstanding common stock, $0.01 par value.

This document is also available through our website at http://www.enterprisebank.com.

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1.  Financial Statements
Condensed Consolidated Balance Sheets (Unaudited)	1
Condensed Consolidated Statements of Operations (Unaudited)	2
Condensed Consolidated Statements of Comprehensive Income (Unaudited)	3
Condensed Consolidated Statements of Shareholders' Equity (Unaudited)	4
Condensed Consolidated Statements of Cash Flows (Unaudited)	5
Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3. Quantitative and Qualitative Disclosures About Market Risk	48
Item 4. Controls and Procedures	49
PART II - OTHER INFORMATION
Item 1.  Legal Proceedings	49
Item 1A.  Risk Factors	50
Item 6. Exhibits	51
Signatures	52

PART 1 – ITEM 1 – FINANCIAL STATEMENTS

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except share and per share data)	September 30, 2013			December 31, 2012
Assets
Cash and due from banks	$	35,238		$	21,906
Federal funds sold	111			51
Interest-bearing deposits (including $730 and $3,270 pledged as collateral)	65,891			94,413
Total cash and cash equivalents	101,240			116,370
Interest-bearing deposits greater than 90 days	5,300			1,000
Securities available for sale	453,046			640,212
Loans held for sale	12,967			11,792
Portfolio loans not covered under FDIC loss share	2,110,825			2,106,039
Less: Allowance for loan losses	26,599			34,330
Portfolio loans not covered under FDIC loss share, net	2,084,226			2,071,709
Portfolio loans covered under FDIC loss share, net of the allowance for loan losses ($13,632 and $11,547, respectively)	145,180			189,571
Portfolio loans, net	2,229,406			2,261,280
Other real estate not covered under FDIC loss share	10,278			9,327
Other real estate covered under FDIC loss share	17,847			17,173
Other investments, at cost	15,485			14,294
Fixed assets, net	19,048			21,121
Accrued interest receivable	7,897			8,497
State tax credits, held for sale, including $20,139 and $23,020 carried at fair value, respectively	55,810			61,284
FDIC loss share receivable	40,054			61,475
Goodwill	30,334			30,334
Intangibles, net	6,136			7,406
Other assets	103,214			64,221
Total assets	$	3,108,062		$	3,325,786
Liabilities and Shareholders' Equity
Demand deposits	$	619,562		$	686,805
Interest-bearing transaction accounts	213,708			272,753
Money market accounts	903,561			1,036,125
Savings	88,443			83,458
Certificates of deposit:
$100 and over	462,971			396,896
Other	159,672			182,814
Total deposits	2,447,917			2,658,851
Subordinated debentures	63,081			85,081
Federal Home Loan Bank advances	120,000			80,000
Other borrowings	167,365			233,370
Notes payable	10,800			11,700
Accrued interest payable	885			1,282
Other liabilities	20,274			19,757
Total liabilities	2,830,322			3,090,041
Shareholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	—			—
Common stock, $0.01 par value; 30,000,000 shares authorized; 19,352,365 and 18,088,152 shares issued, respectively	194			181
Treasury stock, at cost; 76,000 shares	(1,743		)	(1,743		)
Additional paid in capital	198,493			173,299
Retained earnings	82,777			56,218
Accumulated other comprehensive (loss) income	(1,981		)	7,790
Total shareholders' equity	277,740			235,745
Total liabilities and shareholders' equity	$	3,108,062		$	3,325,786

See accompanying notes to condensed consolidated financial statements.

1

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

	Three months ended September 30,					Nine months ended September 30,
(In thousands, except per share data)	2013			2012		2013			2012
Interest income:
Interest and fees on loans	$	34,396		$	39,886	$	109,330		$	111,519
Interest on debt securities:
Taxable	2,043			2,628		6,210			7,440
Nontaxable	301			264		907			734
Interest on interest-bearing deposits	37			53		130			195
Dividends on equity securities	106			43		277			230
Total interest income	36,883			42,874		116,854			120,118
Interest expense:
Interest-bearing transaction accounts	99			182		360			566
Money market accounts	714			1,024		2,348			3,694
Savings	56			68		171			209
Certificates of deposit:
$100 and over	1,326			1,691		4,207			5,500
Other	439			597		1,385			2,103
Subordinated debentures	679			982		2,580			3,111
Federal Home Loan Bank advances	757			721		2,221			2,327
Notes payable and other borrowings	239			125		801			362
Total interest expense	4,309			5,390		14,073			17,872
Net interest income	32,574			37,484		102,781			102,246
Provision for loan losses not covered under FDIC loss share	(652		)	1,048		(3,094		)	2,841
Provision for loan losses covered under FDIC loss share	2,811			10,889		2,789			13,380
Net interest income after provision for loan losses	30,415			25,547		103,086			86,025
Noninterest income:
Wealth Management revenue	1,698			1,825		5,419			5,525
Service charges on deposit accounts	1,768			1,456		5,025			4,199
Other service charges and fee income	722			676		2,030			1,848
Gain on sale of other real estate	472			739		1,562			3,152
Gain on state tax credits, net	308			256		1,214			1,180
Gain on sale of investment securities	611			—		1,295			1,156
Change in FDIC loss share receivable	(2,849		)	1,912		(13,647		)	(6,738		)
Miscellaneous income	986			968		2,055			2,338
Total noninterest income	3,716			7,832		4,953			12,660
Noninterest expense:
Employee compensation and benefits	10,777			11,441		33,006			32,956
Occupancy	1,333			1,399		4,098			4,162
Furniture and equipment	356			384		1,200			1,234
Data processing	1,143			881		3,000			2,530
FDIC and other insurance	900			862		2,592			2,658
Loan legal and other real estate expense	1,247			1,187		3,355			5,216
Professional fees	1,041			1,288		3,394			3,640
Other	4,443			3,840		12,491			11,664
Total noninterest expense	21,240			21,282		63,136			64,060
Income before income tax expense	12,891			12,097		44,903			34,625
Income tax expense	4,481			4,167		15,420			11,744
Net income	$	8,410		$	7,930	$	29,483		$	22,881
Net income available to common shareholders	$	8,410		$	7,282	$	29,483		$	20,948
Earnings per common share
Basic	$	0.45		$	0.41	$	1.61		$	1.17
Diluted	0.44			0.39		1.55			1.14

See accompanying notes to condensed consolidated financial statements.

2

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

	Three months ended September 30,					Nine months ended September 30,
(in thousands)	2013			2012		2013			2012
Net income	$	8,410		$	7,930	$	29,483		$	22,881
Other comprehensive income, net of tax:
Unrealized gain/(loss) on investment securities arising during the period, net of income tax expense/(benefit) for three months of $598 and $1,828, and for nine months of ($5,716) and $3,926, respectively	939			3,248		(8,981		)	6,526
Less reclassification adjustment for realized gain on sale of securities included in net income, net of income tax expense for three months of $238 and $0, and for nine months of $505 and $416, respectively	(373		)	—		(790		)	(740		)
Total other comprehensive income (loss)	566			3,248		(9,771		)	5,786
Total comprehensive income	$	8,976		$	11,178	$	19,712		$	28,667

See accompanying notes to condensed consolidated financial statements.

3

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

(in thousands, except per share data)	Preferred Stock		Common Stock		Treasury Stock			Additional paid in capital			Retained earnings			Accumulated other comprehensive income (loss)			Total shareholders' equity
Balance January 1, 2013	$	—	$	181	$	(1,743	)	$	173,299		$	56,218		$	7,790		$	235,745
Net income	—		—		—			—			29,483			—			29,483
Other comprehensive loss	—		—		—			—			—			(9,771		)	(9,771		)
Cash dividends paid on common shares, $0.1575 per share	—		—		—			—			(2,924		)	—			(2,924		)
Repurchase of common stock warrants	—		—		—			(1,006		)	—			—			(1,006		)
Issuance under equity compensation plans, 87,743 shares	—		1		—			2,550			—			—			2,551
Trust preferred securities conversion 1,176,470 shares	—		12		—			20,431			—			—			20,443
Share-based compensation	—		—		—			3,136			—			—			3,136
Excess tax benefit related to equity compensation plans	—		—		—			83			—			—			83
Balance September 30, 2013	$	—	$	194	$	(1,743	)	$	198,493		$	82,777		$	(1,981	)	$	277,740

(in thousands, except per share data)	Preferred Stock		Common Stock		Treasury Stock			Additional paid in capital		Retained earnings			Accumulated other comprehensive income		Total shareholders' equity
Balance January 1, 2012	$	33,293	$	178	$	(1,743	)	$	169,138	$	35,097		$	3,602	$	239,565
Net income	—		—		—			—		22,881			—		22,881
Other comprehensive income	—		—		—			—		—			5,786		5,786
Cash dividends paid on common shares, $0.1575 per share	—		—		—			—		(2,813		)	—		(2,813		)
Cash dividends paid on preferred stock	—		—		—			—		(1,312		)	—		(1,312		)
Preferred stock accretion of discount	621		—		—			—		(621		)	—		—
Issuance under equity compensation plans, 189,848 shares	—		2		—			1,530		—			—		1,532
Share-based compensation	—		—		—			1,791		—			—		1,791
Excess tax benefit related to equity compensation plans	—		—		—			86		—			—		86
Balance September 30, 2012	$	33,914	$	180	$	(1,743	)	$	172,545	$	53,232		$	9,388	$	267,516

See accompanying notes to condensed consolidated financial statements.

4

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Nine months ended September 30,
(in thousands)	2013			2012
Cash flows from operating activities:
Net income	$	29,483		$	22,881
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	1,936			1,944
Provision for loan losses	(305		)	16,221
Deferred income taxes	180			(1,982		)
Net amortization of debt securities	4,579			5,839
Amortization of intangible assets	1,540			1,440
Gain on sale of investment securities	(1,295		)	(1,156		)
Mortgage loans originated for sale	(64,463		)	(71,085		)
Proceeds from mortgage loans sold	70,884			68,987
Gain on sale of other real estate	(1,562		)	(3,152		)
Gain on state tax credits, net	(1,214		)	(1,180		)
Share-based compensation	3,136			1,791
Valuation adjustment on other real estate	962			2,201
Net accretion of loan discount and indemnification asset	(13,853		)	(18,754		)
Changes in:
Accrued interest receivable	600			(1,288		)
Accrued interest payable	(397		)	(385		)
Prepaid FDIC insurance	2,607			1,837
Other assets	(21,322		)	1,212
Other liabilities	516			12,567
Net cash provided by operating activities	12,012			37,938
Cash flows from investing activities:
Net decrease (increase) in loans	36,955			(10,478		)
Net cash proceeds received from FDIC loss share receivable	9,654			85,173
Proceeds from the sale of debt and equity securities, available for sale	159,604			110,876
Proceeds from the maturity of debt and equity securities, available for sale	69,017			91,498
Proceeds from the redemption of other investments	26,695			6,296
Proceeds from the sale of state tax credits held for sale	8,126			4,408
Proceeds from the sale of other real estate	15,303			44,273
Payments for the purchase/origination of:
Available for sale debt and equity securities	(60,732		)	(214,935		)
Other investments	(28,143		)	(8,138		)
Bank owned life insurance	(20,000		)	—
State tax credits held for sale	(1,365		)	(18,577		)
Fixed assets	(1,122		)	(4,433		)
Net cash provided by investing activities	213,992			85,963
Cash flows from financing activities:
Net (decrease) increase in noninterest-bearing deposit accounts	(67,242		)	35,591
Net decrease in interest-bearing deposit accounts	(143,691		)	(276,011		)
Proceeds from Federal Home Loan Bank advances	743,000			157,500
Repayments of Federal Home Loan Bank advances	(703,000		)	(133,500		)
Repayments of notes payable	(900		)	—
Repayments of subordinated debt	(2,000		)	—
Net decrease in other borrowings	(66,005		)	(7,440		)
Cash dividends paid on common stock	(2,924		)	(2,813		)
Excess tax benefit of share-based compensation	83			86
Payment for the repurchase of common stock warrants	(1,006		)	—
Cash dividends paid on preferred stock	—			(1,312		)
Proceeds from the issuance of equity instruments	2,551			1,530
Net cash used by financing activities	(241,134		)	(226,369		)
Net decrease in cash and cash equivalents	(15,130		)	(102,468		)
Cash and cash equivalents, beginning of period	116,370			188,143
Cash and cash equivalents, end of period	$	101,240		$	85,675
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	14,470		$	17,487
Income taxes	24,348			10,953
Noncash transactions:
Transfer to other real estate owned in settlement of loans	21,116			19,799
Sales of other real estate financed	5,564			5,264
Issuance of common stock from Trust Preferred Securities conversion	20,443			—

See accompanying notes to condensed consolidated financial statements.

5

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used by Enterprise Financial Services Corp (the “Company” or “Enterprise”) in the preparation of the condensed consolidated financial statements are summarized below:

Business and Consolidation

Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers located in the St. Louis, Kansas City and Phoenix metropolitan markets through its banking subsidiary, Enterprise Bank & Trust (the “Bank”).

Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2013. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Basis of Financial Statement Presentation

The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and footnotes required by U.S. GAAP for annual financial statements. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The Company has adopted the new accounting guidance surrounding comprehensive income by presenting a separate Statement of Comprehensive Income. The Statement of Comprehensive Income includes the amount and the related tax impact that have been reclassified from accumulated other comprehensive income to net income. The reclassification adjustment for unrealized gain on sale of securities included in net income has been recorded through the gain on sale of investment securities line item, within noninterest income, in the Company's Condensed Consolidated Statements of Operations.

NOTE 2 - EARNINGS PER SHARE

Basic earnings per common share data is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Common shares outstanding include common stock and restricted stock awards where recipients have satisfied the vesting terms. Diluted earnings per common share gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and the if-converted method for convertible trust preferred securities.

6

The following table presents a summary of per common share data and amounts for the periods indicated.

	Three months ended September 30,					Nine months ended September 30,
(in thousands, except per share data)	2013		2012			2013		2012
Net income as reported	$	8,410	$	7,930		$	29,483	$	22,881
Preferred stock dividend	—		(436		)	—		(1,312		)
Accretion of preferred stock discount	—		(212		)	—		(621		)
Net income available to common shareholders	$	8,410	$	7,282		$	29,483	$	20,948
Impact of assumed conversions
Interest on 9% convertible trust preferred securities, net of income tax	217		371			926		1,113
Net income available to common shareholders and assumed conversions	$	8,627	$	7,653		$	30,409	$	22,061
Weighted average common shares outstanding	18,779		17,876			18,288		17,829
Incremental shares from assumed conversions of convertible trust preferred securities	851		1,439			1,241		1,439
Additional dilutive common stock equivalents	200		100			153		34
Weighted average diluted common shares outstanding	19,830		19,415			19,682		19,302
Basic earnings per common share:	$	0.45	$	0.41		$	1.61	$	1.17
Diluted earnings per common share:	$	0.44	$	0.39		$	1.55	$	1.14

For the three months ended September 30, 2013 and 2012, the amount of common stock equivalents that were excluded from the earnings per share calculations because their effect was anti-dilutive was 474,267, and 1.0 million common stock equivalents (including 324,074 common stock warrants), respectively. For the nine months ended September 30, 2013 and 2012, the amount of common stock equivalents that were excluded from the earnings per share calculations because their effect was anti-dilutive was 488,318 (including 9,497 average common stock warrants), and 1.0 million common stock equivalents (including 324,074 common stock warrants), respectively.

7

NOTE 3 - INVESTMENTS

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale:

	September 30, 2013
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	93,680	$	599	$	(305	)	$	93,974
Obligations of states and political subdivisions	51,702		1,079		(1,588		)	51,193
Residential mortgage-backed securities	310,907		3,127		(6,155		)	307,879
	$	456,289	$	4,805	$	(8,048	)	$	453,046
	December 31, 2012
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	149,039	$	3,329	$	—		$	152,368
Obligations of states and political subdivisions	51,202		2,279		(478		)	53,003
Residential mortgage-backed securities	427,221		7,884		(264		)	434,841
	$	627,462	$	13,492	$	(742	)	$	640,212

At September 30, 2013, and December 31, 2012, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. government agencies and sponsored enterprises. The residential mortgage-backed securities are all issued by U.S. government sponsored enterprises. Available for sale securities having a fair value of $227.5 million and $359.3 million at September 30, 2013, and December 31, 2012, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities classified as available for sale at September 30, 2013, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 5 years.

(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	885	$	892
Due after one year through five years	107,062		107,703
Due after five years through ten years	23,333		23,516
Due after ten years	14,102		13,056
Mortgage-backed securities	310,907		307,879
	$	456,289	$	453,046

8

The following table represents a summary of available-for-sale investment securities that had an unrealized loss:

	September 30, 2013
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government-sponsored enterprises	$	30,355	$	305	$	—	$	—	$	30,355	$	305
Obligations of states and political subdivisions	$	20,306	$	1,230	$	3,042	$	358	$	23,348	$	1,588
Residential mortgage-backed securities	188,849		5,692		8,779		463		197,628		6,155
	$	239,510	$	7,227	$	11,821	$	821	$	251,331	$	8,048
	December 31, 2012
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	6,434		122		3,389		356		9,823		478
Residential mortgage-backed securities	40,471		143		11,266		121		51,737		264
	$	46,905	$	265	$	14,655	$	477	$	61,560	$	742

The unrealized losses at both September 30, 2013, and December 31, 2012, were primarily attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security and (5) the intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value. At September 30, 2013, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.

The gross gains and gross losses realized from sales of available-for-sale investment securities were as follows:

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013			2012
Gross gains realized	$	611	$	—	$	1,477		$	1,399
Gross losses realized	—		—		(182		)	(243		)
Proceeds from sales	36,710		—		159,604			110,876

9

NOTE 4 - PORTFOLIO LOANS NOT COVERED BY LOSS SHARE ("Non-covered")

Below is a summary of Non-covered loans by category at September 30, 2013, and December 31, 2012:

(in thousands)	September 30, 2013		December 31, 2012
Real Estate Loans:
Construction and Land Development	$	114,608	$	160,911
Commercial real estate - Investor Owned	451,102		486,467
Commercial real estate - Owner Occupied	350,653		333,242
Residential real estate	150,320		145,558
Total real estate loans	$	1,066,683	$	1,126,178
Commercial and industrial	1,007,398		962,884
Consumer & other	35,862		16,966
Portfolio Loans	$	2,109,943	$	2,106,028
Unearned loan costs, net	882		11
Portfolio loans, including unearned loan costs	$	2,110,825	$	2,106,039

The Company grants commercial, residential, and consumer loans primarily in the St. Louis, Kansas City and Phoenix metropolitan areas. The Company has a diversified loan portfolio, with no particular concentration of credit in any one economic sector; however, a substantial portion of the portfolio is concentrated in and secured by real estate. The ability of the Company’s borrowers to honor their contractual obligations is partially dependent upon the local economy and its effect on the real estate market.

10

A summary of the year-to-date activity in the allowance for loan losses and the recorded investment in Non-covered loans by portfolio class and category based on impairment method through September 30, 2013, and at December 31, 2012, is as follows:

(in thousands)	Commercial & Industrial			Commercial Real Estate Owner Occupied			Commercial Real Estate Investor Owned			Construction and Land Development			Residential Real Estate			Consumer & Other			Qualitative Adjustment			Total
Allowance for Loan Losses:
Balance at December 31, 2012	$	10,064		$	4,192		$	10,403		$	5,239		$	2,026		$	31		$	2,375		$	34,330
Provision charged to expense	120			179			953			(127		)	675			46			7			1,853
Losses charged off	(206		)	(312		)	(3,052		)	(190		)	(986		)	(34		)	—			(4,780		)
Recoveries	298			5			336			14			396			—			—			1,049
Balance at March 31, 2013	$	10,276		$	4,064		$	8,640		$	4,936		$	2,111		$	43		$	2,382		$	32,452
Provision charged to expense	(320		)	(139		)	(2,273		)	(998		)	(299		)	1			(267		)	(4,295		)
Losses charged off	(400		)	(32		)	(176		)	(144		)	—			—			—			(752		)
Recoveries	118			17			24			21			34			—			—			214
Balance at June 30, 2013	$	9,674		$	3,910		$	6,215		$	3,815		$	1,846		$	44		$	2,115		$	27,619
Provision charged to expense	117			(233		)	(276		)	(1,291		)	(612		)	19			1,624			(652		)
Losses charged off	(1,817		)	(56		)	(504		)	(85		)	(52		)	—			—			(2,514		)
Recoveries	906			14			360			385			481			—			—			2,146
Balance at September 30, 2013	$	8,880		$	3,635		$	5,795		$	2,824		$	1,663		$	63		$	3,739		$	26,599

(in thousands)	Commercial & Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Investor Owned		Construction and Land Development		Residential Real Estate		Consumer & Other		Qualitative Adjustment		Total
Balance September 30, 2013
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	$	2,610	$	—	$	973	$	712	$	11	$	—	$	—	$	4,306
Collectively evaluated for impairment	6,270		3,635		4,822		2,112		1,652		63		3,739		22,293
Total	$	8,880	$	3,635	$	5,795	$	2,824	$	1,663	$	63	$	3,739	$	26,599
Loans - Ending Balance:
Individually evaluated for impairment	$	5,974	$	191	$	10,830	$	6,499	$	675	$	—	$	—	$	24,169
Collectively evaluated for impairment	1,001,424		350,462		440,272		108,109		149,645		36,744		—		2,086,656
Total	$	1,007,398	$	350,653	$	451,102	$	114,608	$	150,320	$	36,744	$	—	$	2,110,825
Balance at December 31, 2012
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	$	3,446	$	339	$	3,400	$	732	$	259	$	—	$	—	$	8,176
Collectively evaluated for impairment	6,618		3,853		7,003		4,507		1,767		31		2,375		26,154
Total	$	10,064	$	4,192	$	10,403	$	5,239	$	2,026	$	31	$	2,375	$	34,330
Loans - Ending Balance:
Individually evaluated for impairment	$	8,934	$	5,772	$	16,762	$	4,695	$	2,564	$	—	$	—	$	38,727
Collectively evaluated for impairment	953,950		327,470		469,705		156,216		142,994		16,977		—		2,067,312
Total	$	962,884	$	333,242	$	486,467	$	160,911	$	145,558	$	16,977	$	—	$	2,106,039

11

A summary of Non-covered loans individually evaluated for impairment by category at September 30, 2013, and December 31, 2012, is as follows:

	September 30, 2013
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial & Industrial	$	6,333	$	1,441	$	4,642	$	6,083	$	2,610	$	7,379
Real Estate:
Commercial - Owner Occupied	191		195		—		195		—		2,381
Commercial - Investor Owned	11,969		4,960		6,158		11,118		973		12,346
Construction and Land Development	7,206		4,278		2,389		6,667		712		5,165
Residential	700		460		227		687		11		2,361
Consumer & Other	—		—		—		—		—		—
Total	$	26,399	$	11,334	$	13,416	$	24,750	$	4,306	$	29,632

	December 31, 2012
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial & Industrial	$	9,005	$	96	$	8,838	$	8,934	$	3,446	$	6,379
Real Estate:
Commercial - Owner Occupied	6,726		2,178		3,594		5,772		339		7,985
Commercial - Investor Owned	19,864		185		16,577		16,762		3,400		10,500
Construction and Land Development	6,491		1,560		3,135		4,695		732		10,259
Residential	3,132		1,626		938		2,564		259		4,368
Consumer & Other	—		—		—		—		—		—
Total	$	45,218	$	5,645	$	33,082	$	38,727	$	8,176	$	39,491

There were no loans over 90 days past due and still accruing interest at September 30, 2013. If interest on impaired loans would have been accrued based upon the original contractual terms, such income would have been $410,000 and $1.5 million for the three and nine months ended September 30, 2013, respectively. The cash amount collected and recognized as interest income on impaired loans was $4,000 and $28,000 for the three and nine months ended September 30, 2013, respectively. There was no interest income recognized on impaired loans continuing to accrue interest for the three and nine months ended September 30, 2013, respectively. At September 30, 2013, there were $1.7 million of unadvanced commitments on impaired loans. Other liabilities include approximately $241,000 for estimated losses attributable to the unadvanced commitments on impaired loans.

12

The recorded investment in non-accrual, restructured, and 90 days past due and still accruing interest Non-covered loans by category at September 30, 2013, and December 31, 2012, is as follows:

	September 30, 2013
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial & Industrial	$	6,083	$	—	$	—	$	6,083
Real Estate:
Commercial - Investor Owned	11,118		—		—		11,118
Commercial - Owner Occupied	195		—		—		195
Construction and Land Development	6,667		—		—		6,667
Residential	687		—		—		687
Consumer & Other	—		—		—		—
Total	$	24,750	$	—	$	—	$	24,750

	December 31, 2012
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial & Industrial	$	8,929	$	5	$	—	$	8,934
Real Estate:
Commercial - Investor Owned	16,762		—		—		16,762
Commercial - Owner Occupied	5,772		—		—		5,772
Construction and Land Development	3,260		1,435		—		4,695
Residential	2,564		—		—		2,564
Consumer & Other	—		—		—		—
Total	$	37,287	$	1,440	$	—	$	38,727

There were no Non-covered loans that have been restructured and subsequently defaulted in the nine months ended September 30, 2013.

13

The aging of the recorded investment in past due Non-covered loans by portfolio class and category at September 30, 2013, and December 31, 2012, is shown below.

	September 30, 2013
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	445	$	1,337	$	1,782	$	1,005,616	$	1,007,398
Real Estate:
Commercial - Owner Occupied	442		190		632		350,021		350,653
Commercial - Investor Owned	1,025		6,842		7,867		443,235		451,102
Construction and Land Development	—		2,210		2,210		112,398		114,608
Residential	—		320		320		150,000		150,320
Consumer & Other	3		—		3		36,741		36,744
Total	$	1,915	$	10,899	$	12,814	$	2,098,011	$	2,110,825

	December 31, 2012
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	14	$	—	$	14	$	962,870	$	962,884
Real Estate:
Commercial - Owner Occupied	1,352		2,081		3,433		329,809		333,242
Commercial - Investor Owned	—		4,045		4,045		482,422		486,467
Construction and Land Development	1,201		1,559		2,760		158,151		160,911
Residential	616		593		1,209		144,349		145,558
Consumer & Other	34		—		34		16,943		16,977
Total	$	3,217	$	8,278	$	11,495	$	2,094,544	$	2,106,039

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, and current economic factors, among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

• Grades 1, 2, and 3- These grades include loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry.

• Grade 4- This grade includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow.

• Grade 5- This grade includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow.

• Grade 6- This grade includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating.

• Grade 7 - Watch credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Borrowers within this category are expected to turnaround within a 12-month period of time. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support.

14

• Grade 8- Substandard credits will include those borrowers that are characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted.

• Grade 9- Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual.

The recorded investment by risk category of the Non-covered loans by portfolio class and category at September 30, 2013, which is based upon the most recent analysis performed, and December 31, 2012 is as follows:

	September 30, 2013
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial & Industrial	$	948,844	$	35,321	$	22,858	$	375	$	1,007,398
Real Estate:
Commercial - Owner Occupied	315,715		20,862		14,076		—		350,653
Commercial - Investor Owned	381,553		43,654		25,895		—		451,102
Construction and Land Development	81,799		17,385		14,951		473		114,608
Residential	135,455		7,282		7,583		—		150,320
Consumer & Other	36,740		4		—		—		36,744
Total	$	1,900,106	$	124,508	$	85,363	$	848	$	2,110,825

	December 31, 2012
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial & Industrial	$	912,766	$	29,524	$	18,546	$	2,048	$	962,884
Real Estate:
Commercial - Owner Occupied	290,850		26,336		15,898		158		333,242
Commercial - Investor Owned	389,886		64,707		31,874		—		486,467
Construction and Land Development	124,857		9,543		26,012		499		160,911
Residential	130,159		5,921		9,478		—		145,558
Consumer & Other	16,972		5		—		—		16,977
Total	$	1,865,490	$	136,036	$	101,808	$	2,705	$	2,106,039

NOTE 5 - PORTFOLIO LOANS COVERED BY LOSS SHARE ("Covered loans")

Below is a summary of Covered loans by category at September 30, 2013, and December 31, 2012:

	September 30, 2013			December 31, 2012
(in thousands)	Weighted- Average Risk Rating	Recorded Investment Covered Loans		Weighted- Average Risk Rating	Recorded Investment Covered Loans
Real Estate Loans:
Construction and Land Development	6.96		$15,332	7.06		$30,537
Commercial real estate - Investor Owned	6.54	51,842		6.08	57,602
Commercial real estate - Owner Occupied	6.87	43,252		6.65	47,140
Residential real estate	5.95	37,446		5.68	42,531
Total real estate loans			$147,872			$177,810
Commercial and industrial	6.99	9,095		6.57	22,034
Consumer & other	6.43	1,845		4.19	1,274
Portfolio Loans			$158,812			$201,118

15

The aging of the recorded investment in past due Covered loans by portfolio class and category at September 30, 2013, and December 31, 2012, is shown below.

	September 30, 2013
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	1,642	$	1,166	$	2,808	$	6,287	$	9,095
Real Estate:
Commercial - Owner Occupied	3,323		5,024		8,347		34,905		43,252
Commercial - Investor Owned	1,653		4,465		6,118		45,724		51,842
Construction and Land Development	—		3,886		3,886		11,446		15,332
Residential	673		6,591		7,264		30,182		37,446
Consumer & Other	—		—		—		1,845		1,845
Total	$	7,291	$	21,132	$	28,423	$	130,389	$	158,812

	December 31, 2012
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	319	$	3,925	$	4,244	$	17,790	$	22,034
Real Estate:
Commercial - Owner Occupied	887		5,144		6,031		41,109		47,140
Commercial - Investor Owned	308		665		973		56,629		57,602
Construction and Land Development	36		13,532		13,568		16,969		30,537
Residential	1,232		2,907		4,139		38,392		42,531
Consumer & Other	1		2		3		1,271		1,274
Total	$	2,783	$	26,175	$	28,958	$	172,160	$	201,118

16

The following table is a rollforward of Covered loans, net of the allowance for loan losses, for the nine months ended September 30, 2013 and 2012.

(In thousands)	Contractual Cashflows			Less: Non-accretable Difference			Less: Accretable Yield			Carrying Amount
Balance January 1, 2013	$	386,966		$	118,627		$	78,768		$	189,571
Principal reductions and interest payments	(37,421		)	—			—			(37,421		)
Accretion of loan discount	—			—			(19,987		)	19,987
Changes in contractual and expected cash flows due to remeasurement	9,216			(10,858		)	14,233			5,841
Reductions due to disposals	(68,953		)	(23,867		)	(12,288		)	(32,798		)
Balance September 30, 2013	$	289,808		$	83,902		$	60,726		$	145,180
Balance January 1, 2012	$	618,791		$	256,481		$	63,335		$	298,975
Principal reductions and interest payments	(68,783		)	—			—			(68,783		)
Accretion of loan discount	—			—			(22,231		)	22,231
Changes in contractual and expected cash flows due to remeasurement	1,671			(67,401		)	67,178			1,894
Reductions due to disposals	(107,669		)	(50,846		)	(12,837		)	(43,986		)
Balance September 30, 2012	$	444,010		$	138,234		$	95,445		$	210,331

The accretable yield is accreted into interest income over the estimated life of the acquired loans using the effective

yield method.

A summary of activity in the FDIC loss share receivable for the nine months ended September 30, 2013 is as follows:

(In thousands)	September 30, 2013
Balance at beginning of period	$	61,475
Adjustments not reflected in income:
Cash received from the FDIC for covered assets	(9,654		)
FDIC reimbursable losses, net	1,880
Adjustments reflected in income:
Amortization, net	(9,574		)
Loan impairment (recapture)	2,205
Reductions for payments on covered assets in excess of expected cash flows	(6,278		)
Balance at end of period	$	40,054

Due to continued favorable projections in the expected cash flows of its Covered loans, the Company continues to anticipate that it will be required to pay the FDIC at the end of one of the loss share agreements. Accordingly, a liability of $1.4 million has been recorded at September 30, 2013. As part of the remeasurement process, the Company recorded a $62,000 adjustment to increase the liability through Other noninterest expense during the quarter ended September 30, 2013. The liability will continue to be adjusted as part of the quarterly remeasurement process through the end of the loss share agreement.

17

NOTE 6 - COMMITMENTS AND CONTINGENCIES

The Company issues financial instruments with off balance sheet risk in the normal course of the business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

The Company’s extent of involvement and maximum potential exposure to credit loss under commitments to extend credit and standby letters of credit in the event of nonperformance by the other party to the financial instrument is represented by the contractual amount of these instruments.

The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. At September 30, 2013, there were $1.7 million of unadvanced commitments on impaired loans compared to $775,000 at December 31, 2012. Other liabilities include approximately $241,000 and $124,000 at September 30, 2013 and December 31, 2012 for estimated losses attributable to the unadvanced commitments on impaired loans.

The contractual amounts of off-balance-sheet financial instruments as of September 30, 2013, and December 31, 2012, are as follows:

(in thousands)	September 30, 2013		December 31, 2012
Commitments to extend credit	$	769,704	$	722,325
Standby letters of credit	43,452		42,561

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments usually have fixed expiration dates or other termination clauses, may have significant usage restrictions, and may require payment of a fee. Of the total commitments to extend credit at September 30, 2013, and December 31, 2012, approximately $38.6 million and $50.7 million, respectively, represent fixed rate loan commitments. Since certain of the commitments may expire without being drawn upon or may be revoked, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. The type of collateral held varies, but may include accounts receivable, inventory, premises and equipment, and real estate.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are issued to support contractual obligations of the Company’s customers. The credit risk involved in issuing letters of credit is essentially the same as the risk involved in extending loans to customers. The approximate remaining terms of standby letters of credit range from 6 months to 5 years at September 30, 2013.

Contingencies

The Company and its subsidiaries are, from time to time, parties to various legal proceedings arising out of their businesses. Although we are not able to predict the outcome of such actions, management believes that there are no such proceedings pending or threatened against the Company or its subsidiaries which, if determined adversely, would have a material adverse effect on the business, consolidated financial condition, results of operations or cash flows of the Company or any of its subsidiaries.

Distinctive Notes

The Bank, along with other co-defendants, had been named as a defendant in lawsuits filed by persons alleging to be clients of the Bank’s Trust division who invested in promissory notes (the "Distinctive Notes") issued by Distinctive

18

Properties (UK) Limited (“Distinctive Properties”), a company involved in the purchase and development of real estate in the United Kingdom.

Rosemann, et al. v. Martin Sigillito, et al. 

In a lawsuit filed in United States District Court for the Eastern District of Missouri, the plaintiffs alleged that the investments in the Distinctive Notes were part of a multi-million dollar Ponzi scheme. Plaintiffs alleged to hold such promissory notes in accounts with the Trust division and that, among other things, the Bank was negligent and breached its contracts. Plaintiffs also alleged that the Bank violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”). Plaintiffs, in the aggregate, were seeking damages from defendants, including the Bank, in excess of $44.0 million as well as their costs and attorneys’ fees and trebled damages under RICO.

The case was stayed while criminal proceedings against Sigillito were completed. After a four week trial, Sigillito was found guilty of 20 counts of wire fraud, mail fraud, conspiracy, and money laundering. Following the verdict, the judge lifted the stay and set the case for a four week jury trial starting August 26, 2013. Discovery concluded on April 16, 2013 and dispositive motions were filed. On July 9, 2013 the judge dismissed all counts related to RICO, as well as the Company's negligence. The Court denied the plaintiffs' motion to reconsider the dismissal. The claims that remained pending against the Company were the breach of contract claims asserted by 41 plaintiffs who held IRA accounts with the Company. On September 24, 2013, the Company reached a confidential settlement with the Plaintiffs. The settlement did not have a material impact on the Company's financial statements.

19

NOTE 7 - DERIVATIVE FINANCIAL INSTRUMENTS

The Company is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients and as part of its risk management activities. These instruments include interest rate swaps and option contracts and foreign exchange forward contracts. The Company does not enter into derivative financial instruments for trading or speculative purposes.

Interest rate swap contracts involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying principal amounts. The Company enters into interest rate swap contracts on behalf of its clients and also utilizes such contracts to reduce or eliminate the exposure to changes in the cash flows or fair value of hedged assets or liabilities due to changes in interest rates. Interest rate option contracts consist of caps and provide for the transfer or reduction of interest rate risk in exchange for a fee. Foreign exchange forward contracts are agreements between two parties to exchange a specified amount of one currency for another currency at a specified foreign exchange rate on a future date. The Company enters into foreign exchange forward contracts with its clients and enters into an offsetting foreign exchange contract with established financial institution counterparties.

All derivative financial instruments, whether designated as hedges or not, are recorded on the consolidated balance sheet at fair value within Other assets or Other liabilities. The accounting for changes in the fair value of a derivative in the consolidated statement of operations depends on whether the contract has been designated as a hedge and qualifies for hedge accounting. At September 30, 2013, and December 31, 2012, the Company did not have any derivatives designated as cash flow or fair value hedges.

Using derivative instruments means assuming counterparty credit risk. Counterparty credit risk relates to the loss the Company could incur if a counterparty were to default on a derivative contract. Notional amounts of derivative financial instruments do not represent credit risk, and are not recorded in the consolidated balance sheet. They are used merely to express the volume of this activity. The overall credit risk and exposure to individual counterparties is monitored. The Company does not anticipate nonperformance by any counterparties. The amount of counterparty credit exposure is the unrealized gains, if any, on such derivative contracts along with the value of foreign exchange forward contracts. At September 30, 2013 and December 31, 2012, the Company had $1.1 million and $1.7 million of counterparty credit exposure on derivatives, respectively. At September 30, 2013, and December 31, 2012, the Company had pledged cash of $730,000 and $3.3 million, respectively, as collateral in connection with our interest rate swap agreements.

Risk Management Instruments. The Company enters into certain derivative contracts to economically hedge state tax credits and certain loans.

• Economic hedge of state tax credits. In November 2008, the Company paid $2.1 million to enter into a series of interest rate caps in order to economically hedge changes in fair value of the state tax credits held for sale. In February 2010, the Company paid $751,000 for an additional series of interest rate caps. See Note 8—Fair Value Measurements for further discussion of the fair value of the state tax credits.

The table below summarizes the notional amounts and fair values of the derivative instruments used to manage risk.

					Asset Derivatives (Other Assets)				Liability Derivatives (Other Liabilities)
	Notional Amount				Fair Value				Fair Value
(in thousands)	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
Non-designated hedging instruments
Interest rate cap contracts	$	34,050	$	49,050	$	14	$	13	$	—	$	—

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The following table shows the location and amount of gains and losses related to derivatives used for risk management purposes that were recorded in the condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012.

	Location of Gain or (Loss) Recognized in Operations on Derivative	Amount of Gain or (Loss) Recognized in Operations on Derivative						Amount of Gain or (Loss) Recognized in Operations on Derivative
		Three months ended September 30,						Nine months ended September 30,
(in thousands)		2013			2012			2013		2012
Non-designated hedging instruments
Interest rate cap contracts	Gain on state tax credits, net	$	(9	)	$	(14	)	$	1	$	(79	)

Client-Related Derivative Instruments. As an accommodation to certain customers, the Company enters into interest rate swaps to economically hedge changes in fair value of certain loans. The table below summarizes the notional amounts and fair values of the client-related derivative instruments.

					Asset Derivatives (Other Assets)				Liability Derivatives (Other Liabilities)
	Notional Amount				Fair Value				Fair Value
(in thousands)	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
Non-designated hedging instruments
Interest rate swap contracts	$	139,223	$	126,962	$	1,114	$	1,741	$	1,114	$	1,979

Changes in the fair value of client-related derivative instruments are recognized currently in operations. The following table shows the location and amount of gains and losses recorded in the condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012.

	Location of Gain or (Loss) Recognized in Operations on Derivative	Amount of Gain or (Loss) Recognized in Operations on Derivative						Amount of Gain or (Loss) Recognized in Operations on Derivative
		Three months ended September 30,						Nine months ended September 30,
(in thousands)		2013			2012			2013			2012
Non-designated hedging instruments
Interest rate swap contracts	Interest and fees on loans	$	(32	)	$	(103	)	$	(205	)	$	(354	)

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NOTE 8 - FAIR VALUE MEASUREMENTS

Below is a description of certain assets and liabilities measured at fair value.

The following table summarizes financial instruments measured at fair value on a recurring basis as of September 30, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

	September 30, 2013
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	93,974	$	—	$	93,974
Obligations of states and political subdivisions	—		48,151		3,042		51,193
Residential mortgage-backed securities	—		307,879		—		307,879
Total securities available for sale	$	—	$	450,004	$	3,042	$	453,046
State tax credits held for sale	—		—		20,139		20,139
Derivative financial instruments	—		1,128		—		1,128
Total assets	$	—	$	451,132	$	23,181	$	474,313
Liabilities
Derivative financial instruments	$	—	$	1,114	$	—	$	1,114
Total liabilities	$	—	$	1,114	$	—	$	1,114

• Securities available for sale. Securities classified as available for sale are reported at fair value utilizing Level 2 and Level 3 inputs. The Company obtains fair value measurements from an independent pricing service. Fair values for Level 2 securities are based upon dealer quotes, market spreads, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions at the security level. At September 30, 2013, Level 3 securities available for sale consist primarily of three Auction Rate Securities that are valued based on the securities' estimated cash flows, yields of comparable securities, and live trading levels.

• Portfolio Loans. Certain fixed rate portfolio loans are accounted for as trading instruments and reported at fair value. Fair value on these loans is determined using a third party valuation model with observable Level 2 market data inputs.

• State tax credits held for sale. At September 30, 2013, of the $55.8 million of state tax credits held for sale on the condensed consolidated balance sheet, approximately $20.1 million were carried at fair value. The remaining $35.7 million of state tax credits were accounted for at cost.

The Company is not aware of an active market that exists for the 10-year streams of state tax credit financial instruments. However, the Company’s principal market for these tax credits consists of Missouri state residents who buy these credits and from local and regional accounting firms who broker them. As such, the Company employed a discounted cash flow analysis (income approach) to determine the fair value.

The fair value measurement is calculated using an internal valuation model with observable market data including discounted cash flows based upon the terms and conditions of the tax credits. If the underlying project remains in compliance with the various federal and state rules governing the tax credit program, each project will generate about 10 years of tax credits. The inputs to the discounted cash flow calculation include: the amount of tax credits generated each year, the anticipated sale price of the tax credit, the timing of the saleand a discount rate. The discount rate is estimated using the LIBOR swap curve at a point equal to the remaining

22

life in years of credits plus a 205 basis point spread. With the exception of the discount rate, the other inputs to the fair value calculation are observable and readily available. The discount rate is considered a Level 3 input because it is an “unobservable input” and is based on the Company’s assumptions. An increase in the discount rate utilized would generally result in a lower estimated fair value of the tax credits. Alternatively, a decrease in the discount rate utilized would generally result in a higher estimated fair value of the tax credits. Given the significance of this input to the fair value calculation, the state tax credit assets are reported as Level 3 assets.

• Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The Company obtains counterparty quotations to value its interest rate swaps and caps. In addition, the Company validates the counterparty quotations with third party valuation sources. Derivatives with negative fair values are included in Other liabilities in the consolidated balance sheets. Derivatives with positive fair value are included in Other assets in the consolidated balance sheets.

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Level 3 financial instruments

The following table presents the changes in Level 3 financial instruments measured at fair value on a recurring basis for the periods ended September 30, 2013 and 2012, respectively.

• Purchases, sales, issuances and settlements, net. There were no Level 3 purchases during the quarter ended September 30, 2013 or 2012.

• Transfers in and/or out of Level 3. The transfer out of Level 3 during the period ended March 31, 2012 was related to a mortgage-backed security purchased in the fourth quarter of 2011 which was originally priced using Level 3 assumptions. In the first quarter of 2012, a third party pricing service, utilizing Level 2 assumptions, became available as more data was available on the new security.

	Securities available for sale, at fair value
	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013			2012
Beginning balance	$	3,039	$	3,042	$	3,049		$	6,763
Total (losses) gains:
Included in other comprehensive income	3		5		(7		)	20
Purchases, sales, issuances and settlements:
Purchases	—		—		—			—
Transfer in and/or out of Level 3	—		—		—			(3,736		)
Ending balance	$	3,042	$	3,047	$	3,042		$	3,047
Change in unrealized (losses) gains relating to assets still held at the reporting date	$	3	$	5	$	(7	)	$	20

	State tax credits held for sale
	Three months ended September 30,					Nine months ended September 30,
(in thousands)	2013		2012			2013			2012
Beginning balance	$	19,822	$	24,836		$	23,020		$	26,350
Total gains:
Included in earnings	317		264			422			994
Purchases, sales, issuances and settlements:
Sales	—		(31		)	(3,303		)	(2,275		)
Ending balance	$	20,139	$	25,069		$	20,139		$	25,069
Change in unrealized gains relating to assets still held at the reporting date	$	317	$	257		$	(456	)	$	439

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From time to time, the Company measures certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. The following table presents financial instruments and non-financial assets measured at fair value on a non-recurring basis as of September 30, 2013:

	(1)		(1)		(1)		(1)
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (losses) gains for the three months ended September 30, 2013			Total (losses) gains for the nine months ended September 30, 2013
Impaired loans	$	3,172	$	—	$	—	$	3,172	$	(2,514	)	$	(8,046	)
Other real estate	7,528		—		—		7,528		(207		)	(961		)
Total	$	10,700	$	—	$	—	$	10,700	$	(2,721	)	$	(9,007	)

(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date.

Impaired loans are reported at the fair value of the underlying collateral or by determining the net present value of future cash flows. Fair values for collateral dependent impaired loans are obtained from current appraisals by qualified licensed appraisers or independent valuation specialists. Fair values of impaired loans that are not collateral dependent are determined by using a discounted cash flow model to determine the net present value of future cash flows. Other real estate owned is adjusted to fair value upon foreclosure of the loan collateral. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value less costs to sell. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions.

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at September 30, 2013, and December 31, 2012.

	September 30, 2013				December 31, 2012
(in thousands)	Carrying Amount		Estimated fair value		Carrying Amount		Estimated fair value
Balance sheet assets
Cash and due from banks	$	35,238	$	35,238	$	21,906	$	21,906
Federal funds sold	111		111		51		51
Interest-bearing deposits	71,191		71,191		95,413		95,413
Securities available for sale	453,046		453,046		640,212		640,212
Other investments, at cost	15,485		15,485		14,294		14,294
Loans held for sale	12,967		12,967		11,792		11,792
Derivative financial instruments	1,128		1,128		1,754		1,754
Portfolio loans, net	2,229,406		2,229,411		2,261,280		2,267,038
State tax credits, held for sale	55,810		60,937		61,284		66,822
Accrued interest receivable	7,897		7,897		8,497		8,497
Balance sheet liabilities
Deposits	2,447,917		2,453,970		2,658,851		2,669,113
Subordinated debentures	63,081		40,474		85,081		65,840
Federal Home Loan Bank advances	120,000		126,234		80,000		89,301
Other borrowings	178,165		178,228		245,070		245,224
Derivative financial instruments	1,114		1,114		1,979		1,979
Accrued interest payable	885		885		1,282		1,282

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For information regarding the methods and assumptions used to estimate the fair value of each class of financial instruments for which it is practical to estimate such value, refer to Note 20–Fair Value Measurements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The following table presents the level in the fair value hierarchy for the estimated fair values of only the Company’s financial instruments that are not already presented on the condensed consolidated balance sheets at fair value at September 30, 2013, and December 31, 2012:

	Estimated Fair Value Measurement at Reporting Date Using						Balance at September 30, 2013
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Portfolio loans, net	$	—	$	—	$	2,229,411	$	2,229,411
State tax credits, held for sale	$	—	$	—	$	40,798	$	40,798
Financial Liabilities:
Deposits	1,825,274		—		628,696		2,453,970
Subordinated debentures	—		40,474		—		40,474
Federal Home Loan Bank advances	—		126,234		—		126,234
Other borrowings	—		178,228		—		178,228
	Estimated Fair Value Measurement at Reporting Date Using						Balance at December 31, 2012
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Portfolio loans, net	$	—	$	—	$	2,266,834	$	2,266,834
State tax credits, held for sale	$	—	$	—	$	43,802	$	43,802
Financial Liabilities:
Deposits	2,079,141		—		589,972		2,669,113
Subordinated debentures	—		65,840		—		65,840
Federal Home Loan Bank advances	—		89,301		—		89,301
Other borrowings	—		245,224		—		245,224

NOTE 9 - SEGMENT REPORTING

The Company has two primary operating segments, Banking and Wealth Management, which are delineated by the products and services that each segment offers. The segments are evaluated separately on their individual performance, as well as their contribution to the Company as a whole.

The Banking operating segment consists of a full-service commercial bank, with locations in St. Louis, Kansas City, and Phoenix. The majority of the Company’s assets and income result from the Banking segment. All banking locations have the same product and service offerings, have similar types and classes of customers and utilize similar service delivery methods. Pricing guidelines and operating policies for products and services are the same across all regions.

The Banking operating segment also includes activities surrounding the assets acquired under FDIC loss share agreements. 

The Wealth Management operating segment includes the Trust division of the Bank and the state tax credit brokerage activities. The Trust division provides estate planning, investment management, and retirement planning as well as strategic planning and management succession issues. State tax credits are part of a fee initiative designed to augment the Company’s Wealth Management segment and Banking lines of business.

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The Company's Corporate and Intercompany activities represent the elimination of items between segments as well as Corporate related items that management feels are not allocable to either of the two respective segments.

The financial information for each business segment reflects that information which is specifically identifiable or which is allocated based on an internal allocation method. There were no material intersegment revenues among the two segments. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results. When appropriate, these changes are reflected in prior year information presented below.

Following are the financial results for the Company’s operating segments.

(in thousands)	Banking			Wealth Management			Corporate and Intercompany			Total
	Three months ended September 30,
Income Statement Information	2013
Net interest income (expense)	$	33,476		$	(166	)	$	(736	)	$	32,574
Provision for loan losses	2,159			—			—			2,159
Noninterest income	1,684			2,006			26			3,716
Noninterest expense	17,898			1,809			1,533			21,240
Income (loss) before income tax expense (benefit)	15,103			31			(2,243		)	12,891
	2012
Net interest income (expense)	$	38,627		$	(252	)	$	(891	)	$	37,484
Provision for loan losses	11,937			—			—			11,937
Noninterest income	5,418			2,088			326			7,832
Noninterest expense	18,063			1,968			1,251			21,282
Income (loss) before income tax expense (benefit)	14,045			(132		)	(1,816		)	12,097
	Nine months ended September 30,
Income Statement Information	2013
Net interest income (expense)	$	105,738		$	(292	)	$	(2,665	)	$	102,781
Provision for loan losses	(305		)	—			—			(305		)
Noninterest income	(1,758		)	6,611			100			4,953
Noninterest expense	53,137			5,644			4,355			63,136
Income (loss) before income tax expense (benefit)	51,148			675			(6,920		)	44,903
	2012
Net interest income (expense)	$	105,646		$	(566	)	$	(2,834	)	$	102,246
Provision for loan losses	16,221			—			—			16,221
Noninterest income	5,571			6,718			371			12,660
Noninterest expense	54,424			5,761			3,875			64,060
Income (loss) before income tax expense (benefit)	40,572			391			(6,338		)	34,625
Balance Sheet Information	September 30, 2013						December 31, 2012
Total assets:
Banking	$	2,994,008					$	3,195,096
Wealth Management	96,943						112,020
Corporate and Intercompany	17,111						18,670
Total	3,108,062						3,325,786

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NOTE 10 - BRANCH SALE

On July 3, 2013 the Company entered into an agreement to sell two of its Kansas City branches to another financial institution. The agreement calls for the sale of substantially all of the deposits at these branches, as well as specified loans and other assets. The Company expects to record a gain upon completion of the transaction primarily attributed to a premium on the deposits that will be sold. Regulatory approval for the transaction occurred in the third quarter of 2013 and the sale is expected to be completed in the fourth quarter of 2013.

The following table summarizes the primary balance sheet amounts relative to the branches to be sold:

(in thousands)
Assets
Cash and cash equivalents	$	805
Loans	7,696
Other assets	1,206
Liabilities
Deposits	$	81,298

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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Some of the information in this report 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. Forward-looking statements typically are identified with use of terms such as “may,” “might,” “will, ”should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “could,” “continue” and the negative of these terms and similar words, although some forward-looking statements are expressed differently. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. You should be aware that our actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including, but not limited to: 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 within the banking industry; competition from banks and other financial institutions; our 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 regulation or standards applicable to banks; and other risks discussed under the caption “Risk Factors” of our most recently filed Form 10-K and within this Form 10-Q, all of which could cause the Company’s actual results to differ from those set forth in the forward-looking statements.

Readers are cautioned not to place undue reliance on our forward-looking statements, which reflect management’s analysis and expectations only as of the date of such statements. Forward-looking statements speak only as of the date they are made, and the Company does not intend, and undertakes no obligation, to publicly revise or update forward-looking statements after the date of this report, whether as a result of new information, future events or otherwise, except as required by federal securities law. You should understand that it is not possible to predict or identify all risk factors. Readers should carefully review all disclosures we file from time to time with the Securities and Exchange Commission which are available on our website at www.enterprisebank.com.

Introduction

The following discussion describes the significant changes to the financial condition of the Company that have occurred during the first nine months of 2013 compared to the financial condition as of December 31, 2012. In addition, this discussion summarizes the significant factors affecting the results of operations, liquidity and cash flows of the Company for the three and nine months ended September 30, 2013, compared to the same period in 2012. This discussion should be read in conjunction with the accompanying consolidated financial statements included in this report and our Annual Report on Form 10-K for the year ended December 31, 2012.

Executive Summary

The Company reported net income of $8.4 million for the three months ended September 30, 2013, compared to net income of $7.9 million for the same period in 2012. The Company reported diluted earnings per share of $0.44, compared to $0.39 for the prior year period.

Net income for the nine months ended September 30, 2013 was $29.5 million compared to net income of $22.9 million for the same period in 2012. The Company reported diluted earnings per share of $1.55, compared to $1.14 for the prior year period.

Below are highlights of our Banking and Wealth Management segments. For more information on our segments, see Note 9 –Segment Reporting.

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Banking Segment

• Loans - Portfolio loans totaled $2.3 billion at September 30, 2013, up $21.2 million, or 1% when compared to June 30, 2013 and up $61.0 million, or 3% from September 30, 2012. The Company expects to show 2-3% loan growth over December 31, 2012 by the end of 2013. Loans covered under FDIC shared loss agreements ("Covered loans") were $158.8 million at September 30, 2013, a decrease of $11.1 million or 7% from June 30, 2013 and a decrease of $62.6 million or 28% from September 30, 2012.

Portfolio loans excluding covered loans ("Noncovered loans") were up slightly when compared to June 30, 2013 amounts. The increase was primarily due to Commercial & Industrial loans, which increased $44.5 million or 5%, offset by Construction Real Estate loans which decreased $33.3 million or 23%. Noncovered loans increased $123.7 million or 6%, from September 30, 2012. Commercial and Industrial loans drove the increase and were up $127.0 million or 14%.

See Note 4 – Portfolio Loans Not Covered by Loss Share and Note 5 – Portfolio Loans Covered by Loss Share for more information.

• Deposits – Total deposits at September 30, 2013 were $2.4 billion, an increase of $79.7 million, or 3% from June 30, 2013 and a decrease of $103.0 million, or 4%, from September 30, 2012. The increase in deposits from the linked quarter applied primarily to our certificates of deposits as the Company sought incremental liquidity at relatively low interest rates. The year over year decrease in deposits was largely comprised of reductions in interest-bearing and money market deposits as the Company continued to manage down its cost of funds and focus on retention of noninterest-bearing accounts.

• Asset quality – Nonperforming loans were $24.2 million at September 30, 2013, compared to $25.9 million at June 30, 2013 and $32.1 million at September 30, 2012. Nonperforming loans represented 1.14% of total Noncovered loans at September 30, 2013 versus 1.25% at June 30, 2013 and 1.61% at September 30, 2012. Excluding non-accrual loans and Covered loans, portfolio loans that were 30-89 days delinquent at September 30, 2013 remained at very low levels, representing 0.09% of the portfolio compared to 0.27% at June 30, 2013 and 0.07% at September 30, 2012.

Provision for loan losses not covered under FDIC loss share was a benefit of $0.7 million in the third quarter of 2013, compared to a benefit of $4.3 million in the linked quarter and an expense of $1.0 million in the third quarter of 2012. See Note 4 – Portfolio Loans Not Covered by Loss Share and Provision and Allowance for Loan Losses and Nonperforming Assets in this section for more information.

• Interest rate margin – The net interest rate margin was 4.71% for the third quarter of 2013, compared to 4.75% for the second quarter of 2013 and 5.21% in the third quarter of 2012. See Net Interest Income in this section for more information.

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• Covered loans and other assets covered under FDIC shared loss agreements - The following table illustrates the net revenue contribution of covered assets for the most recent five quarters.

	For the Quarter ended
(in thousands)	September 30, 2013			June 30, 2013			March 31, 2013			December 31, 2012			September 30, 2012
Accretion income	$	6,252		$	6,623		$	7,112		$	7,442		$	7,995
Accelerated cash flows	4,309			4,689			7,209			9,778			7,446
Other	219			59			324			419			103
Total interest income	10,780			11,371			14,645			17,639			15,544
Provision for loan losses	(2,811		)	2,278			(2,256		)	(653		)	(10,889		)
Gain on sale of other real estate	168			116			689			105			34
Change in FDIC loss share receivable	(2,849		)	(6,713		)	(4,085		)	(8,131		)	1,912
Change in FDIC clawback liability	(62		)	(449		)	(304		)	(575		)	—
Pre-tax net revenue	$	5,226		$	6,603		$	8,689		$	8,385		$	6,601

Our current projection of average Covered loans is $153.4 million and $115.3 million for the years ended December 31, 2013 and 2014, respectively.

Wealth Management Segment

Fee income from the Wealth Management segment includes Wealth Management revenue and income from state tax credit brokerage activities. Wealth Management revenue was $1.7 million in the third quarter of 2013, a decrease of $80,000, or 4%, over the linked second quarter and a decrease of $127,000, or 7%, over the period ended September 30, 2012. See Noninterest Income in this section for more information.

Net Interest Income

Three months ended September 30, 2013 and 2012

Net interest income (on a tax equivalent basis) was $33.1 million for the three months ended September 30, 2013 compared to $37.9 million for the same period of 2012, a decrease of $4.8 million, or 13%. Total interest income decreased $5.9 million and total interest expense decreased $1.1 million.

Average interest-earning assets decreased $100.7 million, or 3%, to $2.8 billion for the quarter ended September 30, 2013 from $2.9 billion for the quarter ended September 30, 2012. Average loans increased $57.2 million, or 3%, to $2.25 billion for the quarter ended September 30, 2013, from $2.19 billion for the quarter ended September 30, 2012. Noncovered loans increased $127.9 million while Covered loans decreased $70.7 million. Average securities decreased $140.3 million or 23%, while short-term investments decreased $17.6 million or 19% from the third quarter of 2012. Interest income on earning assets decreased $3.7 million from a volume perspective primarily due to lower volume on Covered loans and decreased $2.2 million from a rate perspective primarily due to lower rates on Noncovered loans for a net decrease of $5.9 million versus the third quarter of 2012. Refer to Rate/Volume section for more information regarding our net interest income.

For the quarter ended September 30, 2013, average interest-bearing liabilities decreased $100.3 million, or 4%, to $2.2 billion compared to $2.3 billion for the quarter ended September 30, 2012. The decrease resulted from a $182.7 million decrease in average interest-bearing deposits, partially offset by a $94.5 million increase in borrowed funds from customer repurchase agreements and Federal Home Loan Bank (FHLB) advances. The decrease in average interest-bearing deposits is due to a $59.5 million decrease in certificates of deposit, a $73.1 million decrease in average money market accounts and savings accounts, and a $50.1 million decrease in interest-bearing transaction accounts. For the

31

third quarter of 2013, interest expense on interest-bearing liabilities decreased $1.0 million due to declining rates and $119,000 due to the impact of lower volumes, for a total decrease of $1.1 million versus the third quarter of 2012.

The tax-equivalent net interest rate margin was 4.71% for the third quarter of 2013, compared to 4.75% for the second quarter of 2013 and 5.21% in the third quarter of 2012. Covered loans yielded 26.31% in the third quarter of 2013, compared to 26.51% in the third quarter of 2012.

The Core net interest margin, defined as the Net interest margin (fully tax equivalent), including contractual interest on Covered loans, but excluding the incremental accretion on these loans, for the quarters ended September 30, 2013 and 2012 is as follows:

	Three months ended September 30,
	2013		2012
Core net interest margin	3.54	%	3.57	%

The Core net interest margin decline was due to lower loan yields partially offset by an improved earning asset mix and lower deposit and overall funding costs. Continued pressure on loan yields and liquidity is expected to result in a slightly lower Core net interest margin over the next two quarters. Included in this MD&A under the caption "Use of Non-GAAP Financial Measures" is a reconciliation of net interest margin to Core net interest margin. The Average Balance Sheet and Rate/Volume sections following contain additional information regarding our net interest income.

Nine months ended September 30,2013 and 2012

Net interest income (on a tax equivalent basis) was $104.4 million for the nine months ended September 30, 2013 compared to $103.3 million for the same period of 2012, an increase of $1.0 million, or 1%. Total interest income decreased $2.8 million and total interest expense decreased $3.8 million.

Average interest-earning assets decreased $9.1 million, relatively flat when compared to the nine months ended September 30, 2012. Average loans increased $85.7 million, or 4%, to $2.3 billion for the nine months ended September 30, 2013, from $2.2 billion for the nine months ended September 30, 2012. Noncovered loans increased $165.2 million while Covered loans decreased $79.5 million. Average securities decreased $66.3 million or 11%, while short-term investments decreased $28.5 million or 26% from the same period of 2012. Interest income on earning assets decreased $8.4 million primarily due to lower volume on Covered loans and increased $5.7 million primarily due to higher yields on Covered loans, for a net increase of $2.8 million versus the same period of 2012. See Rate/Volume section below for more information regarding our net interest income.

For the nine months ended September 30, 2013, average interest-bearing liabilities decreased $105.4 million, or 4%, to $2.2 billion compared to $2.4 billion for the nine months ended September 30, 2012. The decrease resulted from a $219.4 million decrease in average interest-bearing deposits, partially offset by a $118.2 million increase in borrowed funds from customer repurchase agreements and FHLB advances. The decrease in average interest-bearing deposits is primarily due to a $139.4 million decrease in certificates of deposit, and a $62.0 million decrease in average money market accounts and savings accounts. For the nine months ended September 30, 2013, interest expense on interest-bearing liabilities decreased $3.1 million due to declining rates and $650,000 due to the impact of lower volumes, for a total decrease of $3.8 million versus the same period of 2012.

The tax-equivalent net interest rate margin was 4.86% for the nine months ended September 30, 2013, compared to 4.79% in the same period of 2012. Covered loans yielded 28.10% for the nine months ended September 30, 2013, compared to 19.95% in the same period 2012.

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The Core net interest margin for the nine months ended September 30, 2013 and 2012 is as follows:

	Nine months ended September 30,
	2013		2012
Core net interest margin	3.55	%	3.59	%

The Core net interest margin decline was due to lower loan yields partially offset by an improved earning asset mix and lower deposit and overall funding costs. Included in this MD&A under the caption "Use of Non-GAAP Financial Measures" is a reconciliation of net interest margin to Core net interest margin. The Average Balance Sheet and Rate/Volume sections following contain additional information regarding our net interest income.

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Average Balance Sheet

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.

	Three months ended September 30,
	2013							2012
(in thousands)	Average Balance			Interest Income/Expense		Average Yield/ Rate		Average Balance			Interest Income/Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Taxable loans (1)	$	2,036,572		$	23,092	4.50	%	$	1,918,419		$	23,907	4.96	%
Tax-exempt loans (2)	46,846			857		7.26		37,138			680		7.28
Covered loans (3)	162,569			10,781		26.31		233,272			15,544		26.51
Total loans	2,245,987			34,730		6.13		2,188,829			40,131		7.29
Taxable investments in debt and equity securities	425,983			2,149		2.00		574,968			2,671		1.85
Non-taxable investments in debt and equity securities (2)	44,605			493		4.38		35,874			412		4.57
Short-term investments	72,739			37		0.20		90,297			53		0.23
Total securities and short-term investments	543,327			2,679		1.96		701,139			3,136		1.78
Total interest-earning assets	2,789,314			37,409		5.32		2,889,968			43,267		5.96
Noninterest-earning assets:
Cash and due from banks	16,897							17,435
Other assets	284,413							318,400
Allowance for loan losses	(39,065		)					(37,804		)
Total assets	$	3,051,559						$	3,187,999
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing transaction accounts	$	209,398		$	99	0.19	%	$	259,488		$	182	0.28	%
Money market accounts	894,552			714		0.32		982,375			1,024		0.41
Savings	89,715			56		0.25		74,961			68		0.36
Certificates of deposit	579,586			1,765		1.21		639,084			2,288		1.42
Total interest-bearing deposits	1,773,251			2,634		0.59		1,955,908			3,562		0.72
Subordinated debentures	72,864			679		3.70		85,081			982		4.59
Borrowed funds	320,507			995		1.23		225,963			846		1.49
Total interest-bearing liabilities	2,166,622			4,308		0.79		2,266,952			5,390		0.95
Noninterest bearing liabilities:
Demand deposits	607,257							642,598
Other liabilities	14,889							15,086
Total liabilities	2,788,768							2,924,636
Shareholders' equity	262,791							263,363
Total liabilities & shareholders' equity	$	3,051,559						$	3,187,999
Net interest income				$	33,101						$	37,877
Net interest spread						4.53	%						5.01	%
Net interest rate margin (4)						4.71							5.21

(1) Average balances include non-accrual loans. The income on such loans is included in interest but is recognized only upon receipt. Loan fees, net of amortization of deferred loan origination fees and costs, included in interest income are approximately $282,000 and $340,000 for the three months ended September 30, 2013 and 2012, respectively.

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(2) Non-taxable income is presented on a fully tax-equivalent basis using a 39% tax rate in 2013 and 36% tax rate in 2012. The tax-equivalent adjustments were $527,000 and $393,000 for the three months ended September 30, 2013 and 2012, respectively.

(3) Covered loans are loans covered under FDIC shared-loss agreements.

(4) Net interest income divided by average total interest-earning assets.

	Nine months ended September 30,
	2013							2012
(in thousands)	Average Balance			Interest Income/Expense		Average Yield/ Rate		Average Balance			Interest Income/Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Taxable loans (1)	$	2,048,503		$	70,963	4.63	%	$	1,897,482		$	72,319	5.09	%
Tax-exempt loans (2)	47,041			2,574		7.32		32,857			1,841		7.48
Covered loans (3)	175,100			36,796		28.10		254,568			38,022		19.95
Total loans	2,270,644			110,333		6.50		2,184,907			112,182		6.86
Taxable investments in debt and equity securities	477,409			6,487		1.82		554,898			7,670		1.85
Non-taxable investments in debt and equity securities (2)	44,115			1,486		4.50		32,902			1,146		4.65
Short-term investments	81,836			130		0.21		110,364			195		0.24
Total securities and short-term investments	603,360			8,103		1.80		698,164			9,011		1.72
Total interest-earning assets	2,874,004			118,436		5.51		2,883,071			121,193		5.62
Noninterest-earning assets:
Cash and due from banks	17,575							16,037
Other assets	274,085							361,824
Allowance for loan losses	(43,593		)					(38,104		)
Total assets	$	3,122,071						$	3,222,828
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing transaction accounts	$	238,400		$	360	0.20	%	$	256,505		$	566	0.29	%
Money market accounts	939,127			2,348		0.33		1,024,359			3,694		0.48
Savings	89,664			171		0.25		66,386			209		0.42
Certificates of deposit	561,796			5,593		1.33		701,168			7,603		1.45
Total interest-bearing deposits	1,828,987			8,472		0.62		2,048,418			12,072		0.79
Subordinated debentures	80,920			2,580		4.26		85,081			3,111		4.88
Borrowed funds	336,063			3,021		1.20		217,841			2,689		1.65
Total interest-bearing liabilities	2,245,970			14,073		0.84		2,351,340			17,872		1.02
Noninterest bearing liabilities:
Demand deposits	610,894							609,357
Other liabilities	14,205							8,828
Total liabilities	2,871,069							2,969,525
Shareholders' equity	251,002							253,303
Total liabilities & shareholders' equity	$	3,122,071						$	3,222,828
Net interest income				$	104,363						$	103,321
Net interest spread						4.67	%						4.60	%
Net interest rate margin (4)						4.86							4.79

(1) Average balances include non-accrual loans. The income on such loans is included in interest but is recognized only upon receipt. Loan fees, net of amortization of deferred loan origination fees and costs, included in interest income are approximately $1,154,000 and $1,040,000 for the nine months ended September 30, 2013 and 2012, respectively.

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(2) Non-taxable income is presented on a fully tax-equivalent basis using a 39% tax rate in 2013 and 36% tax rate in 2012. The tax-equivalent adjustments were $1,582,000 and $1,075,000 for the nine months ended September 30, 2013 and 2012, respectively.

(3) Covered loans are loans covered under FDIC shared-loss agreements.

(4) Net interest income divided by average total interest-earning assets.

Rate/Volume

The following table sets forth, on a tax-equivalent basis for the periods indicated, a summary of the changes in interest income and interest expense resulting from changes in yield/rates and volume.

	2013 compared to 2012
	Three months ended September 30,									Nine months ended September 30,
	Increase (decrease) due to									Increase (decrease) due to
(in thousands)	Volume(1)			Rate(2)			Net			Volume(1)			Rate(2)			Net
Interest earned on:
Taxable loans	$	1,448		$	(2,263	)	$	(815	)	$	5,476		$	(6,832	)	$	(1,356	)
Tax-exempt loans (3)	179			(2		)	177			775			(42		)	733
Covered loans	(4,648		)	(115		)	(4,763		)	(13,971		)	12,745			(1,226		)
Taxable investments in debt and equity securities	(732		)	210			(522		)	(1,061		)	(122		)	(1,183		)
Non-taxable investments in debt and equity securities (3)	98			(17		)	81			378			(38		)	340
Short-term investments	(9		)	(7		)	(16		)	(46		)	(19		)	(65		)
Total interest-earning assets	$	(3,664	)	$	(2,194	)	$	(5,858	)	$	(8,449	)	$	5,692		$	(2,757	)
Interest paid on:
Interest-bearing transaction accounts	$	(31	)	$	(52	)	$	(83	)	$	(38	)	$	(168	)	$	(206	)
Money market accounts	(85		)	(225		)	(310		)	(288		)	(1,058		)	(1,346		)
Savings	11			(23		)	(12		)	59			(97		)	(38		)
Certificates of deposit	(199		)	(324		)	(523		)	(1,428		)	(582		)	(2,010		)
Subordinated debentures	(128		)	(175		)	(303		)	(148		)	(383		)	(531		)
Borrowed funds	313			(164		)	149			1,193			(861		)	332
Total interest-bearing liabilities	(119		)	(963		)	(1,082		)	(650		)	(3,149		)	(3,799		)
Net interest income	$	(3,545	)	$	(1,231	)	$	(4,776	)	$	(7,799	)	$	8,841		$	1,042

(1) Change in volume multiplied by yield/rate of prior period.

(2) Change in yield/rate multiplied by volume of prior period.

(3) Nontaxable income is presented on a fully tax-equivalent basis using the combined statutory federal and state income tax rate in effect for each year.

NOTE: The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the absolute dollar amounts of the change in each.

Provision and Allowance for Loan Losses

The provision for loan losses not covered under FDIC loss share agreements for the three and ninemonths ended September 30, 2013 was a $0.7 million benefit and a $3.1 million benefit, respectively compared to expense of $1.0 million and $2.8 million for the comparable 2012 periods. The reversal of loan loss provision in the third quarter of 2013 was due to fewer risk rating downgrades, and continued favorable loss migration statistics.

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For Covered loans, the Company remeasures contractual and expected cash flows on a quarterly basis. When the remeasurement process results in a decrease in expected cash flows, typically due to an increase in expected credit losses, impairment is recorded through provision for loan losses. Similarly, when expected credit losses decrease in the remeasurement process, prior recorded impairment is reversed before the yield is increased prospectively. The provision for loan losses on Covered loans for the three and nine months ended September 30, 2013 was $2.8 million compared to $10.9 million and $13.4 million for the comparable 2012 periods.

The allowance for loan losses on Non-Covered loans was 1.26% of total loans at September 30, 2013, compared to 1.33% at June 30, 2013, and 1.72% at September 30, 2012. Management believes that the allowance for loan losses is adequate to absorb inherent losses in the loan portfolio.

Net charge-offs for Non-Covered loans in the third quarter of 2013 were $0.4 million, representing an annualized rate of 0.07% of average loans, compared to net charge-offs of $3.1 million, an annualized rate of 0.64% of average loans, in the third quarter of 2012.

For the nine months ended September 30, 2013, net charge-offs for Non-Covered loans were $4.6 million, representing an annualized rate of 0.30% of average loans compared to net charge-offs of $6.6 million, representing an annualized rate of 0.45% for the same period in 2012. Approximately 73% of the net charge-offs for the nine months ended September 30, 2013 were related to Commercial Real Estate loans, 3% were related to Residential Real Estate Loans, and 24% were related to Commercial & Industrial loans.

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The following table summarizes changes in the allowance for loan losses arising from loans charged off and recoveries on loans previously charged off, by loan category, and additions to the allowance charged to expense.

	Three months ended September 30,						Nine months ended September 30,
(in thousands)	2013			2012			2013			2012
Allowance at beginning of period, for loans not covered under FDIC loss share	$	27,619		$	36,304		$	34,330		$	37,989
Loans charged off:
Commercial and industrial	(1,817		)	(1,479		)	(2,423		)	(2,470		)
Real estate:
Commercial	(560		)	(1,264		)	(4,132		)	(3,042		)
Construction and Land Development	(85		)	(949		)	(419		)	(2,307		)
Residential	(52		)	(282		)	(1,038		)	(860		)
Consumer and other	—			—			(34		)	—
Total loans charged off	(2,514		)	(3,974		)	(8,046		)	(8,679		)
Recoveries of loans previously charged off:
Commercial and industrial	906			142			1,322			441
Real estate:
Commercial	374			15			756			52
Construction and Land Development	385			15			420			264
Residential	481			672			911			1,312
Consumer and other	—			—			—			2
Total recoveries of loans	2,146			844			3,409			2,071
Net loan chargeoffs	(368		)	(3,130		)	(4,637		)	(6,608		)
Provision for loan losses	(652		)	1,048			(3,094		)	2,841
Allowance at end of period, for loans not covered under FDIC loss share	$	26,599		$	34,222		$	26,599		$	34,222
Allowance at beginning of period, for loans covered under FDIC loss share	$	11,045		$	1,889		$	11,547		$	1,635
Loans charged off	(16		)	(1,627		)	(273		)	(3,689		)
Recoveries of loans	26			10			101			16
Other	(234		)	(59		)	(532		)	(240		)
Net loan chargeoffs	(224		)	(1,676		)	(704		)	(3,913		)
Provision for loan losses	2,811			10,889			2,789			13,380
Allowance at end of period, for loans covered under FDIC loss share	$	13,632		$	11,102		$	13,632		$	11,102
Total Allowance at end of period	$	40,231		$	45,324		$	40,231		$	45,324
Excludes loans covered under FDIC loss share
Average loans	$	2,076,765		$	1,955,557		$	2,090,194		$	1,930,339
Total portfolio loans	2,110,825			1,987,166			2,110,825			1,987,166
Net chargeoffs to average loans	0.07		%	0.64		%	0.30		%	0.46		%
Allowance for loan losses to loans	1.26			1.72			1.26			1.72

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Nonperforming assets

The following table presents the categories of nonperforming assets and other ratios as of the dates indicated.

(in thousands)	September 30, 2013			December 31, 2012			September 30, 2012
Non-accrual loans	$	24,169		$	37,287		$	27,346
Loans past due 90 days or more and still accruing interest	—			—			—
Restructured loans	—			1,440			4,712
Total nonperforming loans	24,169			38,727			32,058
Foreclosed property (1)	10,278			9,327			12,549
Total nonperforming assets (1)	$	34,447		$	48,054		$	44,607
Excludes assets covered under FDIC loss share
Total assets (1)	$	3,108,062		$	3,325,786		$	3,193,692
Total portfolio loans	2,110,825			2,106,039			1,987,166
Total loans plus foreclosed property	2,121,103			2,115,366			1,999,715
Nonperforming loans to total loans	1.15		%	1.84		%	1.61		%
Nonperforming assets to total loans plus foreclosed property	1.62			2.27			2.23
Nonperforming assets to total assets (1)	1.11			1.44			1.40
Allowance for loans not covered under FDIC loss share to nonperforming loans	110		%	89		%	107		%

(1) Excludes assets covered under FDIC shared-loss agreements, except for their inclusion in total assets.

Nonperforming loans

Nonperforming loans exclude Covered loans that are accounted for on a pool basis, as the pools are considered to be performing. See Note 5 – Portfolio Loans Covered by Loss Share for more information on these loans.

Nonperforming loans at September 30, 2013 were $24.2 million, a decrease from $25.9 million at June 30, 2013, and $32.1 million at September 30, 2012. The nonperforming loans are comprised of approximately 21 relationships,with the largest from a $4.3 million Commercial and Industrial loan. The top five relationships comprise 63% of the nonperforming loans. Approximately 31% of nonperforming loans were located in the St. Louis market, 35% were located in the Kansas City market, and 34% were located in the Arizona market. At September 30, 2013, there were no performing restructured loans that have been excluded from the nonperforming loan amounts.

Nonperforming loans represented 1.14% of Noncovered loans at September 30, 2013, versus 1.25% at June 30, 2013 and 1.61% at September 30, 2012.

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Nonperforming loans based on Call Report codes were as follows:

(in thousands)	September 30, 2013		December 31, 2012		September 30, 2012
Construction and Land Development	$	6,499	$	4,695	$	10,095
Commercial Real Estate	11,021		22,534		15,231
Residential Real Estate	675		2,564		3,883
Commercial & Industrial	5,974		8,934		2,849
Consumer & Other	—		—		—
Total	$	24,169	$	38,727	$	32,058

The following table summarizes the changes in nonperforming loans by quarter.

	2013												2012
(in thousands)	3rd Qtr			2nd Qtr			1st Qtr			Year to date			Year to date
Nonperforming loans beginning of period	$	25,948		$	32,222		$	38,727		$	38,727		$	41,622
Additions to nonaccrual loans	9,765			3,393			4,590			17,748			22,519
Additions to restructured loans	—			—			—			—			5,023
Chargeoffs	(2,514		)	(752		)	(4,780		)	(8,046		)	(8,679		)
Other principal reductions	(3,650		)	(2,664		)	(6,115		)	(12,429		)	(18,006		)
Moved to Other real estate	(5,257		)	(2,179		)	(225		)	(7,661		)	(9,363		)
Moved to performing	(123		)	(2,229		)	(1,818		)	(4,170		)	(303		)
Loans past due 90 days or more and still accruing interest	—			(1,843		)	1,843			—			(755		)
Nonperforming loans end of period	$	24,169		$	25,948		$	32,222		$	24,169		$	32,058

Other real estate

Other real estate at September 30, 2013, was $28.1 million, compared to $25.4 million at June 30, 2013, and $31.4 million at September 30, 2012. Approximately 63% of total Other real estate, or $17.8 million, is covered by FDIC loss share agreements.

The following table summarizes the changes in Other real estate.

	2013												2012
(in thousands)	3rd Qtr			2nd Qtr			1st Qtr			Year to date			Year to date
Other real estate beginning of period	$	25,363		$	24,807		$	26,500		$	26,500		$	53,688
Additions and expenses capitalized to prepare property for sale	5,257			2,179			225			7,661			10,413
Additions from FDIC assisted transactions	4,951			5,135			3,369			13,455			9,386
Writedowns in value	(741		)	(977		)	(1,080		)	(2,798		)	(3,684		)
Sales	(6,705		)	(5,781		)	(4,207		)	(16,693		)	(38,444		)
Other real estate end of period	$	28,125		$	25,363		$	24,807		$	28,125		$	31,359

At September 30, 2013, Other real estate was comprised of 63 properties, with the largest being a $2.6 million residential lot in the Kansas City region.

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The writedowns in fair value were recorded in Loan legal and other real estate expense or are charged-off existing loan balances based on current market activity shown in the appraisals. In addition, for the nine months ended September 30, 2013, the Company realized a net gain of $1.6 million on the sale of other real estate and recorded these gains as part of Noninterest income.

Noninterest Income

Noninterest income decreased $4.1 million in the third quarter of 2013 compared to the third quarter of 2012. The decrease is primarily due to a decrease in income related to changes in the FDIC Loss Share Receivable partially offset by gains on the sale of investment securities.

For the nine months ended September 30, 2013, Noninterest income decreased $7.7 million, or 61%, from the same period in 2012. The decrease is primarily due to decreases in income related to changes in the FDIC Loss Share Receivable and lower gains on the sale of other real estate partially offset by higher service charges on deposit accounts.

• Wealth Management revenue– For the quarter ended September 30, 2013, Wealth Management revenue from the Trust division decreased $127,000, or 7%, compared to the same period in 2012. Year-to-date, Trust revenues decreased $106,000, or 2%, over the same period in 2012. The decrease in Wealth Management revenue was primarily due to non-recurring revenue in the prior year period, as well as the termination of some less profitable account relationships. Assets under administration were $1.7 billion at September 30, 2013, a 6% increase from September 30, 2012. Assets under management were $789.5 million at September 30, 2013, a 7% decrease from September 30, 2012.

• Service charges and other fee income–For the three and nine months ended September 30, 2013, service charges and other fee income increased $358,000 and $1.0 million compared to the same periods in 2012, primarily due to increased revenue from higher sales of treasury management services, including better pricing and improved collections.

• Sale of Other real estate – For the quarter ended September 30, 2013, we sold $6.7 million of Other real estate for a gain of $472,000, which included a gain of $304,000 from Other real estate not covered by loss share agreements and a gain of $168,000 from Other real estate covered by loss share agreements. Year-to-date through September 30, 2013, we have sold $16.7 million of Other real estate for a gain of $1.6 million which included a gain of $588,000 from Other real estate not covered by loss share agreements and a gain of $974,000 from Other real estate covered by loss share agreements. For the quarter ended September 30, 2012 we sold $11.6 million of Other real estate for a gain of $739,000 which included a gain of $705,000 from Other real estate not covered by loss share agreements and a gain of $34,000 from Other real estate covered by loss share agreements. For the year-to-date period in 2012, we sold $38.4 million of Other real estate for a net gain of $3.2 million which included a gain of $1.2 million from Other real estate not covered by loss share agreements and a gain of $2.0 million from Other real estate covered by loss share agreements.

• State tax credit brokerage activities– For the quarter ended September 30, 2013, the Company recorded a gain of $308,000 compared to a gain of $256,000 in the third quarter of 2012. The slight increase is due to mark-to-market adjustments on those tax credits held at fair value as a result of decreases in the discount rate used in our internal valuation model. For both the year-to-date 2013 and 2012 periods the Company recorded a gain of $1.2 million. For more information on the fair value treatment of the state tax credits, see Note 8 – Fair Value Measurements.

• Sale of investment securities – During the first nine months of 2013, the Company realized approximately $159.6 million of proceeds on the sale of investment securities, generating a net gain of $1.3 million, compared to $110.9 million of proceeds on the sale of investment securities, generating a net gain of $1.2 million during the first nine months of 2012.

41

• Change in FDIC loss share receivable – Income related to changes in the FDIC loss share receivable decreased $4.8 million during the third quarter of 2013 compared to the same period in 2012. The decrease in income related to the FDIC loss share receivable was primarily due to lower credit losses in the current quarter. During the third quarter of 2013 the change in FDIC loss share receivable was comprised of $1.3 million of negative accretion from accelerated cash flows, $2.2 million of income related to the provision for loan losses on Covered loans, and $3.7 million of negative base accretion. During the third quarter of 2012 the change in FDIC loss share receivable was comprised of $2.6 million of negative accretion from accelerated cash flows, $8.7 million of income related to the provision for loan losses on Covered loans, and $4.2 million of negative base accretion.

Noninterest Expense

Noninterest expenses were $21.2 million in the third quarter of 2013, a decrease of $42,000, relatively flat with the same quarter of 2012. The decrease over the prior year period was primarily due to a decrease in salaries and benefits costs of $664,000 due to lower salaries from decreased variable compensation costs partially offset by increases in loan data processing expenses of $262,000 and a $443,000 non-cash expense related to the conversion of $20.0 million of our trust preferred securities to shares of common stock.

The Company's efficiency ratio, which measures noninterest expense as a percentage of total revenue, was 58.5% for the quarter ended September 30, 2013 compared to 47.0% for the prior year period. Year-to-date through September 30, 2013 the Company's efficiency ratio was 58.6% compared to 55.8% for the same period in 2012. The increase in the efficiency ratio compared to the prior year quarter and for the year-to-date period was primarily due to decreased revenue from assets under FDIC loss share agreements, as well as reduced noninterest income due to the change in FDIC receivable during the current period.

Income Before Income Tax Expense

Income before income tax expense on the Company's Core Bank and Covered assets for the three and nine months ended September 30, 2013 and 2012 were as follows:

(In thousands)	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Income before income tax expense
Core Bank	$	10,190	$	8,444	$	30,417	$	23,739
Covered assets	2,701		3,653		14,486		10,886
Total	$	12,891	$	12,097	$	44,903	$	34,625

Income before income tax expense for the Core Bank represents results without direct income and expenses related to Covered assets, as well as an internal estimate of associated asset funding costs.

Income Taxes

For the quarter ended September 30, 2013, the Company’s income tax expense, which includes both federal and state taxes, was $4.5 million compared to $4.2 million for the same period in 2012. The combined federal and state effective income tax rates were relatively consistent at 34.8% and 34.4% for the quarters ended September 30, 2013, and 2012, respectively.

For the nine months ended September 30, 2013, the Company’s income tax expense was $15.4 million compared to $11.7 million for the same period in 2012. The combined federal and state effective income tax rates were 34.3% and 33.9% for the nine months ended September 30, 2013, and 2012, respectively. The Company expects its effective tax rate for the year ended December 31, 2013 to be slightly less than its effective tax rate for the nine months ended September 30, 2013, due to changes in state tax legislation.

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Liquidity and Capital Resources

Liquidity management

The objective of liquidity management is to ensure we have the ability to generate sufficient cash or cash equivalents in a timely and cost-effective manner to meet our commitments as they become due. Typical demands on liquidity are run-off from demand deposits, maturing time deposits which are not renewed, and fundings under credit commitments to customers. Funds are available from a number of sources, such as from the core deposit base and from loans and securities repayments and maturities.

Additionally, liquidity is provided from sales of the securities portfolio, fed fund lines with correspondent banks, the Federal Reserve Bank and the FHLB, the ability to acquire large and brokered deposits, and the ability to sell loan participations to other banks. These alternatives are an important part of our liquidity plan and provide flexibility and efficient execution of the asset-liability management strategy.

The Bank's Asset-Liability Management Committee oversees our liquidity position, the parameters of which are approved by the Bank's Board of Directors.Our liquidity position is monitored monthly by producing a liquidity report, which measures the amount of liquid versus non-liquid assets and liabilities. Ourliquidity management framework includes measurement of several key elements, such as the loan to deposit ratio, a liquidity ratio, and a dependency ratio. The Company's liquidity framework also incorporates contingency planning to assess the nature and volatility of funding sources and to determine alternatives to these sources. While core deposits and loan and investment repayments are principal sources of liquidity, funding diversification is another key element of liquidity management and is achieved by strategically varying depositor types, terms, funding markets, and instruments.

Parent Company liquidity

The parent company's liquidity is managed to provide the funds necessary to pay dividends to shareholders, service debt, invest in subsidiaries as necessary, and satisfy other operating requirements. The parent company's primary funding sources to meet its liquidity requirements are dividends and payments from the Bank and proceeds from the issuance of equity (i.e. stock option exercises, stock offerings). Another source of funding for the parent company includes the issuance of subordinated debentures. Management believes our current level of cash at the holding company of approximately $7.0 million will be sufficient to meet all projected cash needs for at least the next year.

On September 16, 2011, the Company filed a shelf registration statement on Form S-3 registering up to $40.0 million of common stock, preferred stock, debt securities, and various other securities, including combinations of such securities. The registration statement became effective on September 29, 2011. The Company's ability to offer securities pursuant to the registration statement depends on market conditions and the Company's continuing eligibility to use the Form S-3 under rules of the Securities and Exchange Commission.

On November 6, 2012, the parent company entered into a $12.0 million unsecured term loan agreement ("Term Loan") with another bank with proceeds used to redeem the Company's preferred stock held by the U.S. Treasury. The loan has a maturity date of November 6, 2015 and will be repaid in quarterly installments of $300,000, with a balloon payment at maturity. The outstanding balance under the Term Loan was $10.8 million and $11.7 million at September 30, 2013, and December 31, 2012, respectively. The Term Loan pays interest based on LIBOR plus a spread determined by the Company's outstanding balance under the Term Loan agreement. The Term Loan is subject to ongoing compliance with a number of customary affirmative and negative covenants as well as specified financial covenants. The Company was in compliance with all relevant covenants under the Term Loan at September 30, 2013.

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As of September 30, 2013, the Company had $62.6 million of outstanding subordinated debentures as part of nine trust preferred securities pools. On August 15, 2013 the Company converted $20.0 million of trust preferred securities with a 9% interest rate from EFSC Capital Trust VIII to shares of common stock at the election of one of the holders. As a result of the transaction, the Company reduced its long-term debt by $20.0 million and issued an aggregated of 1.2 million shares of common stock. The Company issued 25,060 shares of additional common stock as inducement for the holder's election. The inducement resulted in a $443,000, one-time, non-cash expense recorded in Other noninterest expense during the third quarter of 2013.

The trust preferred securities are classified as debt but are currently included in regulatory capital and the related interest expense is tax-deductible. Regulations recently finalized by the Federal Reserve Board to implement the Basel III regulatory capital reforms allow our currently outstanding trust preferred securities to retain their Tier 1 capital status.

On January 9, 2013, the Company repurchased warrants issued by the U.S. Treasury as part of the Capital Purchase Program. The repurchase price was approximately $1.0 million.

Bank liquidity

The Bank has a variety of funding sources available to increase financial flexibility. In addition to amounts currently borrowed, at September 30, 2013, the Bank could borrow an additional $155.5 million from the FHLB of Des Moines under blanket loan pledges and has an additional $612.8 million available from the Federal Reserve Bank under a pledged loan agreement. The Bank has unsecured federal funds lines with four correspondent banks totaling $45.0 million.

Of the $453.0 million of the securities available for sale at September 30, 2013, $227.5 million was pledged as collateral for deposits of public institutions, treasury, loan notes, and other requirements. The remaining $225.5 million could be pledged or sold to enhance liquidity, if necessary.

The Bank belongs to the Certificate of Deposit Account Registry Service, or CDARS, which allows us to provide our customers with access to additional levels of FDIC insurance coverage on their deposits. The Company considers the reciprocal deposits placed through the CDARS program as core funding and does not report the balances as brokered sources in its internal or external financial reports. As of September 30, 2013, the Bank had $45.2 million of reciprocal CDARS money market sweep balances and $10.2 million of reciprocal certificates of deposits outstanding. In addition to the reciprocal deposits available through CDARS, the Company has access to the “one-way buy” program, which allows the Company to bid on the excess deposits of other CDARS member banks. The Company will report any outstanding “one-way buy” funds as brokered funds in its internal and external financial reports. At September 30, 2013, we had no outstanding “one-way buy” deposits.

In addition, the Bank has the ability to sell certificates of deposit through various national or regional brokerage firms, if needed. Given the tightening liquidity trends on the Company's balance sheet over the past year, continued reductions in deposit costs are limited as the Company continues to increase deposit balances to fund expected loan growth.

In the normal course of business, the Bank enters into certain forms of off-balance sheet transactions, including unfunded loan commitments and letters of credit. These transactions are managed through the Bank's various risk management processes. Management considers both on-balance sheet and off-balance sheet transactions in its evaluation of the Company's liquidity. The Bank has $813.2 million in unused commitments as of September 30, 2013. The nature of these commitments is such that the likelihood of funding them in the aggregate at any one time is low.

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Capital Resources

The Company and the Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and its bank affiliate must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. To be categorized as “well capitalized”, banks must maintain minimum total risk-based (10%), Tier 1 risk-based (6%) and Tier 1 leverage ratios (5%). As of September 30, 2013, and December 31, 2012, the Company and the Bank met all capital adequacy requirements to which they are subject.

The Company continues to exceed regulatory standards and met the definition of “well-capitalized” (the highest category) at September 30, 2013, and December 31, 2012.

The following table summarizes the Company’s various capital ratios at the dates indicated:

(Dollars in thousands)	September 30, 2013			December 31, 2012
Tier 1 capital to risk weighted assets	12.29		%	10.88		%
Total capital to risk weighted assets	13.57		%	12.30		%
Tier 1 common equity to risk weighted assets	9.86		%	7.70		%
Leverage ratio (Tier 1 capital to average assets)	10.06		%	8.36		%
Tangible common equity to tangible assets	7.85		%	6.02		%
Tier 1 capital	$	303,406		$	268,870
Total risk-based capital	$	334,878		$	303,951

Use of Non-GAAP Financial Measures:

The Company's accounting and reporting policies conform to generally accepted accounting principles ("GAAP") in the U.S. and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as Core net interest margin, tangible common equity ratio and Tier 1 common equity ratio, in this filing 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 U.S. GAAP.

The Company believes these non-GAAP financial measures and ratios, when taken together with the corresponding U.S. 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 financial and operating results and related trends and when planning and 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 U.S. GAAP. 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 measure.

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The Company believes the tangible common equity and Tier 1 common equity ratios are important financial measures of capital strength even though they are considered to be non-GAAP measures and provide useful information about the Company's capital adequacy. The tables below contain reconciliations of these ratios to the most comparable measure under U.S. GAAP.

Tangible common equity ratio

(In thousands)	September 30, 2013			December 31, 2012
Total shareholders' equity	$	277,740		$	235,745
Less: Goodwill	(30,334		)	(30,334		)
Less: Intangible assets	(6,136		)	(7,406		)
Tangible common equity	$	241,270		$	198,005
Total assets	$	3,108,062		$	3,325,786
Less: Goodwill	(30,334		)	(30,334		)
Less: Intangible assets	(6,136		)	(7,406		)
Tangible assets	$	3,071,592		$	3,288,046
Tangible common equity to tangible assets	7.85		%	6.02		%

Tier 1 common equity ratio

(In thousands)	September 30, 2013			December 31, 2012
Total shareholders' equity	$	277,740		$	235,745
Less: Goodwill	(30,334		)	(30,334		)
Less: Intangible assets	(6,136		)	(7,406		)
Plus (Less): Unrealized losses (gains)	1,981			(7,790		)
Plus: Qualifying trust preferred securities	60,100			78,600
Other	55			55
Tier 1 capital	$	303,406		$	268,870
Less: Qualifying trust preferred securities	(60,100		)	(78,600		)
Tier 1 common equity	$	243,306		$	190,270
Total risk weighted assets determined in accordance with prescribed regulatory requirements	2,468,525			2,471,668
Tier 1 common equity to risk weighted assets	9.86		%	7.70		%

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The Company believes that Core net interest margin is an important measure of our financial performance, even though it is a non-GAAP financial measure, because it provides supplemental information by which to evaluate the impact of excess Covered loan accretion on the Company's net interest margin and the Company's operating performance on an ongoing basis, excluding such impact. The table below reconciles Core net interest margin to the most comparable number under U.S. GAAP.

Net Interest Margin to Core Net Interest Margin

(In thousands)	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Net interest income (fully tax equivalent)	$	33,101		$	37,877		$	104,363		$	103,321
Less: Incremental accretion income	(8,178		)	(11,911		)	(28,032		)	(25,758		)
Core net interest income	$	24,923		$	25,966		$	76,331		$	77,563
Average earning assets	$	2,789,314		$	2,889,968		$	2,874,004		$	2,883,071
Reported net interest margin	4.71		%	5.21		%	4.86		%	4.79		%
Core net interest margin	3.54		%	3.57		%	3.55		%	3.59		%

Critical Accounting Policies

The impact and any associated risks related to the Company’s critical accounting policies on business operations are discussed throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” where such policies affect our reported and expected financial results. For a detailed discussion on the application of these and other accounting policies, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

New Accounting Standards

FASB ASU 2011-11, "Disclosures about Offsetting Assets and Liabilities" In December 2011, the FASB issued ASU 2011-11 which requires entities with financial instruments and derivatives that are either offset on the balance sheet or subject to a master netting or similar arrangement to disclose the following information separately for assets and liabilities in a tabular format:

• Gross amounts of recognized assets and liabilities

• Offsetting amounts that determine the net amount presented in the balance sheet

• Amounts subject to an enforceable master netting arrangement that were not already included in the disclosure required above, including

◦ Amounts related to recognized financial instruments and other derivative instruments if either (a) management makes an accounting election not to offset the amounts, or (b) the amounts do not meet the right of setoff conditions in ASC 210-30-45, Balance Sheet: Offsetting, or in ASC 815-10-45, Derivatives and Hedging

◦ Amounts related to financial collateral

• Net amounts after deducting the amounts in (4) from the amounts in (3) above

In addition to the tabular disclosure described above, entities are required to provide a description of the setoff rights associated with assets and liabilities subject to an enforceable master netting arrangement. This ASU was effective for the years beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance must be applied retrospectively for any period presented that begins before an entity's date of initial application. This ASU did not have a material impact on the Company's consolidated financial statements as it does not have any material assets or liabilities that are offset as discussed in the standard.

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FASB ASU 2012-06, "Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution" In October 2012, the FASB issued ASU 2012-06, which addresses diversity in practice regarding the subsequent measurement of an indemnification asset in a government-assisted acquisition of a financial institution that includes a loss-sharing agreement.  The amendments are effective for interim and annual reporting periods beginning on or after December 15, 2012 with early adoption permitted.  The adoption of this accounting pronouncement had no impact on the Company’s financial statements as the Company was already accounting for the indemnification asset in accordance with such principles.

FASB ASU 2013-01, "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities"On January 31, 2013, the FASB issued ASU 2013-01 which provides scope clarifications related to the previously issued ASU 2011-11. These ASU's provide new requirements for disclosures about instruments and transactions eligible for offset in the statement of financial position, as well as instruments and transactions subject to an agreement similar to a master netting arrangement. The amendments in these updates are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. This ASU did not have a material impact on the Company's consolidated financial statements as it does not have any material assets or liabilities that are offset as discussed in the standard.

FASB ASU 2013-02, "Comprehensive Income (Topic 220)"In February 2013, the FASB issued ASU 2013-02 requiring new disclosures about reclassifications from accumulated other comprehensive loss to net income. These disclosures may be presented on the face of the statements or in the notes to the consolidated financial statements. This ASU is effective for fiscal years beginning after December 15, 2012. This ASU did not have a material impact on the consolidated financial statements. We have adopted this ASU and revised our disclosures, as seen in the Statement of Comprehensive Income and in Note 1 - Summary of Significant Accounting Policies.

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The disclosures set forth in this item are qualified by the section captioned “Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995” included in Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report and other cautionary statements set forth elsewhere in this report.

Market risk arises to the Company from exposure to changes in interest rates and other relevant market rate or price risk. The Company faces market risk in the form of interest rate risk through transactions other than trading activities. Market risk from these activities, in the form of interest rate risk, is measured and managed through a number of methods. The Company uses financial modeling techniques to measure interest rate risk. These techniques measure the sensitivity of future earnings due to changing interest rate environments. Guidelines established by the Bank’s Asset/Liability Management Committee and approved by the Bank’s Board of Directors are used to monitor exposure of earnings at risk. General interest rate movements are used to develop sensitivity as the Company feels it has no primary exposure to a specific point on the yield curve. These limits are based on the Company’s exposure to a 100 to 400 basis point parallel rate shock through the use of simulation modeling.

Interest rate simulations for September 30, 2013, demonstrate that a rising rate environment will have a positive impact on net interest income.

The following table represents the Company’s estimated interest rate sensitivity and periodic and cumulative gap positions calculated as of September 30, 2013.

(in thousands)	Year 1			Year 2		Year 3		Year 4		Year 5		Beyond 5 years or no stated maturity		Total
Interest-Earning Assets
Securities available for sale	$	41,975		$	41,774	$	42,702	$	117,910	$	48,761	$	159,924	$	453,046
Other investments	—			—		—		—		—		15,485		15,485
Interest-bearing deposits	71,191			—		—		—		—		—		71,191
Federal funds sold	111			—		—		—		—		—		111
Portfolio loans (1)	1,640,983			213,702		203,504		105,182		91,632		14,634		2,269,637
Loans held for sale	12,967			—		—		—		—		—		12,967
Total interest-earning assets	$	1,767,227		$	255,476	$	246,206	$	223,092	$	140,393	$	190,043	$	2,822,437
Interest-Bearing Liabilities
Savings, NOW and Money market deposits	$	1,205,712		$	—	$	—	$	—	$	—	$	—	$	1,205,712
Certificates of deposit	385,579			87,592		137,538		10,096		1,759		79		622,643
Subordinated debentures	63,081			—		—		—		—		—		63,081
Other borrowings	203,555			13,810		10,800		20,000		50,000		—		298,165
Total interest-bearing liabilities	$	1,857,927		$	101,402	$	148,338	$	30,096	$	51,759	$	79	$	2,189,601
Interest-sensitivity GAP
GAP by period	$	(90,700	)	$	154,074	$	97,868	$	192,996	$	88,634	$	189,964	$	632,836
Cumulative GAP	$	(90,700	)	$	63,374	$	161,242	$	354,238	$	442,872	$	632,836	$	632,836
Ratio of interest-earning assets to interest-bearing liabilities
Periodic	0.95			2.52		1.66		7.41		2.71		2,405.61		1.29
Cumulative GAP as of September 30, 2013	0.95			1.03		1.08		1.17		1.20		1.29		1.29

(1) Adjusted for the impact of the interest rate swaps.

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ITEM 4: CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of the Company’s Chief Executive Officer (CEO) and the Principal Financial Officer (PFO), management has evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15, as of September 30, 2013. Disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Based on that evaluation, the CEO and PFO concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2013 to provide reasonable assurance of the achievement of the objectives described above.

Changes to Internal Controls

There were no changes during the period covered by this Quarterly Report on Form 10-Q in the Company's internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, those controls.

PART II – OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

The following information supplements the discussion in Part I, Item 3 “Legal Proceedings” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and as updated by the Company's Quarterly Report on Form 10-Q for the quarters ended March 31, 2013, June 30, 2013, and September 30, 2013:

Distinctive Notes

The Bank, along with other co-defendants, had been named as a defendant in lawsuits filed by persons alleging to be clients of the Bank’s Trust division who invested in promissory notes (the "Distinctive Notes") issued by Distinctive Properties (UK) Limited (“Distinctive Properties”), a company involved in the purchase and development of real estate in the United Kingdom.

Rosemann, et al. v. Martin Sigillito, et al. 

In a lawsuit filed in United States District Court for the Eastern District of Missouri, the plaintiffs alleged that the investments in the Distinctive Notes were part of a multi-million dollar Ponzi scheme. Plaintiffs alleged to hold such promissory notes in accounts with the Trust division and that, among other things, the Bank was negligent and breached its contracts. Plaintiffs also alleged that the Bank violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”). Plaintiffs, in the aggregate, were seeking damages from defendants, including the Bank, in excess of $44.0 million as well as their costs and attorneys’ fees and trebled damages under RICO.

The case was stayed while criminal proceedings against Sigillito were completed. After a four week trial, Sigillito was found guilty of 20 counts of wire fraud, mail fraud, conspiracy, and money laundering. Following the verdict, the judge lifted the stay and set the case for a four week jury trial starting August 26, 2013. Discovery concluded on April 16, 2013 and dispositive motions were filed. On July 9, 2013 the judge dismissed all counts related to RICO, as well as the Company's negligence. The Court denied the plaintiffs' motion to reconsider the dismissal. The claims that remained pending against the Company were the breach of contract claims asserted by 41 plaintiffs. On September 24, 2013, the Company reached a confidential settlement with the Plaintiffs. The settlement did not have a material impact on the Company's financial statements.

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ITEM 1A: RISK FACTORS

For information regarding risk factors affecting the Company, please see the cautionary language regarding forward-looking statements in the introduction to Item 2 of Part I of this Report on Form 10-Q, and Part I - Item 1A of our Report on Form 10-K for the fiscal year ended December 31, 2012. The following is a discussion of material changes to the risk factors described in such Annual Report on Form 10-K.

The Federal Reserve has adopted new capital requirements for financial institutions that may require us to retain or raise additional capital or and/or reduce dividends.

On July 2, 2013, the Federal Reserve adopted final rules that, when effective will increase regulatory capital requirements, implement changes required by the Dodd-Frank Act and implement portions of the Basel III regulatory capital reforms. In the future, the capital requirements for bank holding companies may require us to retain or raise additional capital, restrict our ability to pay dividends and repurchase shares of our common stock, restrict our ability to provide certain forms of discretionary executive compensation and/or require other changes to our strategic plans. While we believe our current capital levels would be adequate under the new rules, the impact of these rules cannot yet be fully understood. The rules could restrict our ability to grow and implement our future business strategies, which could have an adverse impact on our results of operations.

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ITEM 6: EXHIBITS

Exhibit Number	Description
	Registrant hereby agrees to furnish to the Commission, upon request, the instruments defining the rights of holders of each issue of long-term debt of Registrant and its consolidated subsidiaries.
*10.1	Executive Employment Agreement - Keene S. Turner
*12.1	Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends
*31.1	Chief Executive Officer’s Certification required by Rule 13(a)-14(a).
*31.2	Principal Financial Officer’s Certification required by Rule 13(a)-14(a).
**32.1	Chief Executive Officer Certification pursuant to 18 U.S.C. § 1350, as adopted pursuant to section § 906 of the Sarbanes-Oxley Act of 2002.
**32.2	Principal Financial Officer Certification pursuant to 18 U.S.C. § 1350, as adopted pursuant to section § 906 of the Sarbanes-Oxley Act of 2002.
***101	Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2013, is formatted in XBRL interactive data files: (i) Consolidated Balance Sheet at September 30, 2013 and December 31, 2012; (ii) Consolidated Statement of Income for the three and nine months ended September 30, 2013 and 2012; (iii) Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2013 and 2012; (iv) Consolidated Statement of Changes in Equity for the nine months ended September 30, 2013 and 2012; (v) Consolidated Statement of Cash Flows for the nine months ended September 30, 2013 and 2012; and (vi) Notes to Financial Statements.

* Filed herewith

** Furnished herewith. Notwithstanding any incorporation of this Quarterly Statement on Form 10-Q in any other filing by the Registrant, Exhibits furnished herewith and designated with two (**) shall not be deemed incorporated by reference to any other filing unless specifically otherwise set forth herein or therein.

51

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Clayton, State of Missouri on the day of November 12, 2013.

ENTERPRISE FINANCIAL SERVICES CORP
By:	/s/ Peter F. Benoist
	Peter F. Benoist
	Chief Executive Officer
By:	/s/ Frank H. Sanfilippo
	Frank H. Sanfilippo
	Chief Operating Officer (Principal Financial Officer)

52

EX-10.1

Exhibit 10.1

ENTERPRISE FINANCIAL SERVICES CORP

EXECUTIVE EMPLOYMENT AGREEMENT

THIS AGREEMENT, is made by and between KEENE S. TURNER (the “Executive”) and ENTERPRISE FINANCIAL SERVICES CORP, a Delaware corporation (the “Company”), effective as of September 13, 2013 (the “Effective Date”).

WHEREAS, Executive desires to be employed by the Company, and the Company desires to employ Executive, on the terms, covenants and conditions hereafter set forth in this Agreement; and

WHEREAS, the Company has devoted a substantial amount of time and effort and has invested and incurred substantial costs in developing and maintaining its customers contacts, goodwill, loyalty, and confidential business information and methodologies and, as a result, has developed very valuable interests in its customer contacts, goodwill, loyalty and confidential business information and methodologies.

NOW, THEREFORE, for the reasons set forth above, and in consideration of the mutual promises and agreements herein set forth, the Company and Executive agree as follows:

1.Employment. Subject to the terms and conditions set forth in this Agreement, the Company hereby employs Executive for the Employment Term as hereafter defined. Initially, Executive shall serve as Chief Financial Officer of the Company. During the Employment Term, Executive shall report to the Chief Executive Officer of the Company and shall have such duties and responsibilities as directed by the Chief Executive Officer, including taking positions with Subsidiaries (as defined below) of the Company. Executive shall comply with all polices and procedures of the Company generally applicable to Executive. Executive hereby accepts such employment and agrees to serve the Company in such capacities for the term of this Agreement.

2.Term of Employment. Except as otherwise provided herein, the term of Executive’s employment with the Company shall be for a term commencing on October 14, 2013 (the “Start Date”) and ending upon termination of employment as hereafter provided (the “Employment Term”).

3.Devotion to Duties. Executive agrees that during the Employment Term he will devote all of his skill, knowledge, commercial efforts and working time to the conscientious and faithful performance of his duties and responsibilities to the Company (except for (i) permitted vacation time and absence for sickness or similar disability and (ii) to the extent that it does not interfere with the performance of Executive’s duties hereunder: (A) such reasonable time as may be devoted to the fulfillment of Executive’s civic and charitable activities; and (B) such reasonable time as may be necessary from time to time for personal financial matters). Executive will use his best good faith efforts to promote the success of the Company’s business and will cooperate fully with the management of the Company in the advancement of the best interests of the Company. If requested by the Company, Executive will agree to serve as a director or officer of any of the Company’s Subsidiaries without additional compensation.

4.Compensation of Executive.

4.1Starting Incentives. Promptly after the commencement of Executive’s employment on the Start Date, the Company will (a) pay Executive a starting bonus of $25,000.00 and (b) issue to the Executive nine thousand three hundred (9,300) Restricted Stock Units which will vest on a pro-rated basis over a period of three (3) years, all subject to: (i) the terms of the Enterprise Financial

Services Corp 2013 Stock Incentive Plan, as amended from time to time; and (ii) an award agreement mutually agreeable to the parties.

4.2Base Salary. Executive’s base salary as of the Start Date is $260,000.00 subject to increase at any time and from time to time by the Company.

4.3Targeted Incentives. In addition to the compensation set forth elsewhere in this Section 4, Executive shall be eligible to participate in the Company’s long term incentive plan (the “LTIP”) and short term incentive plan (the “STIP”). Such participation shall be governed by the terms and subject to the conditions of such plans, as may be in effect from time to time, including without limitation conditions as to performance targets, length of service and clawback policies. Unless otherwise expressly indicated in any agreement or plan governing an incentive pursuant to the LTIP or STIP (collectively, the “Targeted Incentives”), Executive shall not be eligible to receive any Targeted Incentive unless Executive is employed with the Company on the date such Targeted Incentive is paid. Unless otherwise expressly provided in the terms governing any Targeted Incentives, all Targeted Incentives earned by Executive will be paid not later than March 15 of the calendar year immediately following the calendar year to which the Targeted Incentive relates. With respect to the fiscal year 2013 STIP, 2014 STIP and the LTIP for the 2014-2016 performance period, Executive will be entitled to the following opportunities:

(a)In lieu of an opportunity pursuant to the 2013 STIP, the Company will pay Executive a bonus of $70,000 in calendar year 2014, to be paid not later than the date on which 2013 STIP awards are paid. Executive’s opportunity for the 2014 STIP will have a target payout amount of $100,000.00, subject to achievement of individual and Company goals.

(b) Executive will be eligible to receive a grant pursuant to the terms of the 2014-2016 LTIP with a target value of $100,000.00, subject to the achievement of individual and Company goals.

4.4Benefits. Executive shall be entitled to participate, during the Employment Term, in other regular employee benefit plans generally established by the Company for its full-time employees, including without limitation, any savings and profit sharing plan, incentive stock plan, dental and medical plans, life insurance and disability insurance, such participation to be as provided in said employee benefit plans in accordance with the terms and conditions thereof as in effect from time to time and subject to any applicable waiting period. Executive shall also be entitled to paid vacation during each year of the Employment Term in accordance with the Company’s vacation policy, provided that any vacation not used in any year shall be forfeited and not carried over to any subsequent year. Executive shall also be entitled to cell phone reimbursement and a car allowance, for so long as, and on similar terms as, such perquisites are available to other senior executives.

4.5Reimbursement of Expenses. The Company will provide for the payment or reimbursement of all reasonable and necessary expenses incurred by the Executive in connection with the performance of his duties under this Agreement in accordance with the Company’s expense reimbursement policy, as such may change from time to time.

5.Termination of Employment.

5.1General. Notwithstanding any other provisions of this Agreement, Executive shall constitute an at-will employee and the Company may terminate Executive’s employment at any time, with or without Cause (as defined below), immediately upon written notice. Upon any termination of Executive’s employment, Executive shall, within thirty (30) days after such termination, be paid all accrued salary, bonus compensation to the extent earned, vested deferred compensation, if any (other than pension plan or profit sharing plan benefits which will be paid in accordance with the terms of the applicable plan), any benefits under any plans of the Company in which Executive is a participant to the full extent of the Executive’s rights under such plans, accrued vacation pay for the year in which termination occurs, and any appropriate business expenses incurred by Executive reimbursable by the Company in connection with his duties hereunder, all to the date of termination, but, except as provided in Section 5.2 or 5.3 below, Executive shall not be paid any other compensation or reimbursement of any kind including without limitation, severance compensation.

5.2Termination Other Than for Cause. Notwithstanding any other provisions of this Agreement, the Company may effect a “Termination Other Than For Cause,” as hereinafter defined, at any time upon giving written notice to Executive of such termination.

(a)Subject to the conditions of Section 5.2(b) and Section 6, in the event Executive’s employment is terminated in a Termination Other Than for Cause, provided that such termination constitutes a Separation from Service (as defined in Section 6.1), in addition to payments contemplated by Section 5.1, the Company shall pay Executive as severance compensation: (i) an aggregate amount equal to one (1) year’s Base Salary, at the rate payable at the time of such termination; plus (ii) an aggregate amount equal to any annual cash Targeted Incentives for the year in which such termination occurs as though all “target levels” of performance for such year are fully and completely achieved. Such amounts will be payable over a period of one (1) year following such Termination Other Than for Cause in accordance with the Company’s normal payroll practices, at normal payroll payment dates and subject to applicable withholding. Subject to the satisfaction of the conditions specified in Section 5.2(b), the first payment will be made on the first payroll date following the 60^th day after Executive’s Separation from Service and all such payments will be considered separate payments for purposes of Section 409A (as defined below).

(b)Any payments and benefits set forth in Section 5.2(a) shall be subject to and conditioned upon Executive’s compliance with the terms, provisions and conditions contained in this Agreement in Sections 8, 9 and 10 and shall be subject to and conditioned upon Executive’s execution and expiration of the rescission period (if applicable) of a release and waiver, within sixty (60) days after Executive’s Separation from Service, of all claims with respect to Executive’s employment against the Company, its Affiliates and their respective officers and directors in a form attached hereto as Exhibit A (the “Release”). For purposes of clarification, such sixty (60) day period may extend past the fiscal year in which the Separation of Service occurs.

5.3Termination Upon a Change in Control.

(a)Subject to the conditions of Section 5.3(b) and Section 6, in the event Executive’s employment is terminated in a Termination Upon a Change in Control (as defined below), provided that such termination constitutes a Separation from Service as defined in Section 6.1, in addition to payments contemplated by Section 5.1, Executive shall be paid the

following as severance compensation: (i) an amount equal to one (1) year of Executive’s Base Salary at the rate in effect on his termination of employment; plus (ii) an aggregate amount equal to any annual cash Targeted Incentives for the year in which such termination occurs as though all “target levels” of performance for such year are fully and completely achieved. Such amounts will be paid to Executive in a single sum cash payment, subject to applicable taxes and withholding within ten (10) days of the satisfaction of all of the conditions in Section 5.3(b).

(b)Any payments and benefits set forth in Section 5.3(a) shall be subject to and conditioned upon Executive’s compliance with the terms, provisions and conditions contained in this Agreement in Sections 8, 9 and 10 and shall be subject to and conditioned upon Executive’s execution and expiration of the rescission period (if applicable) of a Release within sixty (60) days after Executive’s Separation from Service. For purposes of clarification, such sixty (60) day period may extend past the fiscal year in which the Separation of Service occurs.

5.4Definitions.

(a)“Affiliate” with respect to any Person, means any other Person that, directly or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with the first Person, including but not limited to a Subsidiary of the first Person, a Person of which the first Person is a Subsidiary, or another Subsidiary of a Person of which the first Person is also a Subsidiary.

(b)“Cause” means the occurrence of any of the following: (i) an order of any federal or state regulatory authority having jurisdiction over the Company which prohibits Executive from performing, or renders it impracticable for Executive to perform, his duties under this Agreement, (ii) the willful failure of Executive substantially to perform his duties hereunder (other than any such failure due to Executive’s Disability); (iii) a willful breach by Executive of any material provision of this Agreement or of any other written agreement with the Company or any of its Affiliates; (iv) Executive’s commission of a crime that constitutes a felony or other crime of moral turpitude or criminal fraud; (v) chemical or alcohol use which materially and adversely affects Executive’s performance of his duties under this Agreement; (vi) any act of disloyalty or breach of responsibilities to the Company or its Affiliates by the Executive which is intended by the Executive to cause material harm to the Company or its Affiliates; (vii) misappropriation (or attempted misappropriation) of any of the Company’s or its Affiliates’ funds or property; or (viii) Executive’s material violation of any Company or its Affiliates policy applicable to Executive.

(c)“Change in Control” means the date on which any of the following has occurred:

(i)any Person, other than one or more of the directors of the Company on the Effective Date of this Agreement or any Person that any such director Controls (as defined below), becomes the beneficial owner of 50% or more of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors of the Company (the “Company Outstanding Voting Securities”);

(ii)any Person becomes the beneficial owner of 50% or more of the combined voting power of the then outstanding voting securities of Enterprise Bank & Trust, the Company’s principal banking Subsidiary, entitled to vote generally in the election of directors of Enterprise Bank &Trust;

(iii)consummation of a reorganization, merger or consolidation (a “Business Combination”) of the Company, unless, in each case, following such Business Combination (A) all or substantially all of the Persons who were the beneficial owners, respectively, of the Company Outstanding Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, a majority of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Company resulting from such Business Combination, (B) no Person (excluding any company resulting from such Business Combination) beneficially owns, directly or indirectly, 50% or more of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors of the Company resulting from such Business Combination except to the extent such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the Board of Directors of the Company (the “Company Board”) resulting from the Business Combination are Continuing Directors (as hereinafter defined) at the time of the execution of the definitive agreement, or the action of the Company Board, providing for such Business Combination;

(iv)consummation of the sale, other than in the ordinary course of business, of more than 50% of the combined assets of the Company and its Subsidiaries in a transaction or series of related transactions during the course of any twelve-month period; or

(v)the date on which Continuing Directors (as hereinafter defined) cease for any reason to constitute at least a majority of the Company Board.

As used in this Section 5.4(c), the definitions of the terms “beneficial owner” and “group” shall have the meanings ascribed to those terms in Rule 13(d)(3) under the Securities Exchange Act of 1934.

(d)“Constructive Termination” means the termination of Executive's employment by the Executive by reason of (i) the Company's material breach of this Agreement which remains uncured for a period of thirty (30) days following Executive's notice of such breach given to the Company, (ii) the assignment of Executive without his consent to a position, responsibilities or duties of a materially lesser status or degree of responsibility than his position, responsibilities or duties as of the Effective Date, following notice by Executive of his refusal to consent to such position, responsibilities or duties (which must be given within thirty (30) days of such assignment) and the Company's refusal to modify such position or responsibility so that it is no longer of lesser status or degree of responsibility than his position, responsibilities or duties as of the Effective Date or (iii) the requirement by the Company that Executive's primary residence be based anywhere other than the city or county of St. Louis, Missouri, without Executive's consent.

(e)“Continuing Directors” means, as of any date of determination, (i) any member of the Company Board on the Effective Date of this Agreement, (ii) any person who has been a member of the Company Board for the two (2) years immediately preceding such date of determination, or (iii) any person who was nominated for election or elected to the Company Board with the affirmative vote of the greater of (A) a majority of the Continuing Directors who were members of the Company Board at the time of such nomination or election or (B) at least four (4) Continuing Directors but excluding, for purposes of this clause (iii), any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies by or on behalf of a Person other than the Company Board.

(f)“Control” means, with respect to any Person, the possession, directly or indirectly, severally or jointly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership of voting securities, by contract or credit arrangement, as trustee or executor, or otherwise.

(g)“Disability” means, in the reasonable judgment of the Company, Executive (i) has failed to perform his duties under this Agreement on account of illness or physical or mental incapacity, and (ii) such illness or incapacity continues for a period of ninety (90) consecutive days, or ninety (90) days during any one hundred eighty (180) day period.

(h)“Person” means any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust, governmental authority or other entity.

(i)“Subsidiary” means, with respect to any Person, each corporation or other Person in which the first Person owns or Controls, directly or indirectly, capital stock or other ownership interests representing 50% or more of the combined voting power of the outstanding voting stock or other ownership interests of such corporation or other Person.

(j)“Termination Other Than for Cause” means (i) any termination by the Company of Executive's employment with the Company other than a termination for Cause, a termination by reason of Disability, a termination on account of death, a voluntary termination by Executive (other than a Constructive Termination) or a Termination Upon a Change of Control, or (ii) a termination by Executive of Executive's employment with the Company by reason of a Constructive Termination, provided that such termination constitutes a Separation from Service as defined in Section 6.1.

(k)“Termination Upon a Change in Control” means a Termination Other Than for Cause which occurs within (i) within three (3) months prior to and in contemplation of a Change in Control or (ii) one (1) year following a Change in Control, provided that such termination constitutes a Separation from Service as defined in Section 6.1.

6.409A. The following provisions shall apply notwithstanding any other provisions herein to the contrary:

6.1Separation From Service. Any amount that (i) is payable upon termination of Executive’s employment with the Company under any provision of this Agreement, and (ii) is subject to the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), shall not be paid unless and until the Executive has Separated from Service. As used in this

Agreement, the terms “Separated from Service” and “Separation from Service” shall have the meaning specified in Treasury Regulation Section 1.409A-1(h).

6.2Specified Employee. If Executive is a “specified employee” (within the meaning of Section 409A) of Company at the time of his termination of employment and if payment of severance compensation to the Executive is on account of an “involuntary separation from service” (as defined in Treasury Regulation Section 1.409A-1(n)), Executive shall be paid such severance compensation during the six (6) month period immediately following the date of his Separation from Service as otherwise provided under Section 5 for such six (6) month period except that the total amount of such payments shall not exceed the lesser of the amount specified under (i) Treasury Regulation Section 1.409A-1(9)(iii)(A)(1) or (ii) Treasury Regulation Section 1.409A-1(9)(iii)(A)(2). To the extent such amounts otherwise payable during such six (6) month period exceed the amounts payable under the immediately preceding sentence, such excess amounts shall not be paid during such six (6) month period, but instead shall be paid in a single sum on the first regular payroll date of Company immediately following the six (6) month anniversary of the date of Executive’s Separation from Service. If Executive is a specified employee and Executive’s Separation from Service is not an involuntary separation from service as defined in Treasury Regulation Section 1.409A-1(n), then any severance compensation and any other amount due to Executive under this Agreement that is subject to Section 409A and that would otherwise have been paid during the six (6) month period immediately following the date of Executive’s Separation from Service shall be paid in a single sum on the first payroll date of Company immediately following the six (6) month anniversary of Executive’s Separation from Service. Amounts, the payment of which are deferred under this Section, shall be increased by interest at the prime rate as of the date of Executive’s Separation from Service as published in the Wall Street Journal from the date such amounts would have been paid but for this provision and such accumulated interest shall also be paid to the Executive on the first payroll date of Company immediately following the six (6) month anniversary of Executive’s Separation from Service.

Notwithstanding the provisions of this Section 6, the Company has no responsibility or obligation to Executive with respect to any tax that may be incurred by Executive pursuant to Section 409A.

7.Death of Executive. In the event Executive dies before amounts are paid to him under this Agreement, such amounts shall be paid to his designed beneficiary of beneficiaries, or if there are no designated beneficiary or beneficiaries, to his estate.

8.Confidentiality; Non-Disparagement.

8.1Executive agrees to hold in strict confidence and not disclose all non-public information concerning any matters affecting or relating to the business of the Company and its Affiliates, including without limiting the generality of the foregoing non-public information concerning their manner of operation, business or other plans, data bases, marketing programs, protocols, processes, computer programs, client lists, marketing information and analyses, operating policies or manuals or other data (the “Confidential Information”). Executive agrees that he will not, directly or indirectly, use any Confidential Information for the benefit of any person, business, legal entity other than the Company and its Affiliates or disclose or communicate any of the Confidential Information in any manner whatsoever other than to the directors, officers, employees, agents and representatives of the Company and its Affiliates who need to know such information, who shall be informed by Executive of the confidential nature of the Confidential Information and directed by Executive to treat the Confidential Information confidentially. Upon the Company’s request, Executive shall return all information furnished to him related to the business of the Company and its Affiliates without retaining any copies in electronic or other form. The above limitations on use

and disclosure shall not apply to information which Executive can demonstrate: (a) was known to Executive before receipt thereof from the Company or its Affiliates; (b) is learned by Executive from a third party entitled to disclose it; or (c) becomes known publicly other than through Executive; (d) is disclosed by Executive upon authority of the Company Board or any committee of the Company Board; (e) is disclosed pursuant to any legal requirement or (f) is disclosed pursuant to any agreement to which the Company or any of its Subsidiaries or Affiliates is a party. The parties hereto stipulate that all such information included in the definition of “Confidential Information” herein is material and confidential and gravely affects the effective and successful conduct of the business of the Company and the Company’s goodwill, and that any breach of the terms of this Section 8 shall be a material breach of this Agreement.

8.2Executive further agrees that, during the Employment Term and thereafter (regardless of the reason for such termination), Executive will not, directly or indirectly, in any individual or representative capacity whatsoever, make any statement, oral or written, or perform any other act or omission which is or is likely to be materially detrimental to the goodwill or the Company or any of its Subsidiaries or Affiliates.

9.Use of Proprietary Information. Executive recognizes that the Company possesses a proprietary interest in all of the Confidential Information and has the exclusive right and privilege to use, protect by copyright, patent or trademark, manufacture or otherwise exploit the processes, ideas and concepts described therein to the exclusion of Executive, except as otherwise agreed between the Company and Executive in writing. Executive expressly agrees that any products, inventions, discoveries or improvements made by Executive, his agents or affiliates, during the Employment Term, based on or arising out of the Confidential Information shall be the property of and inure to the exclusive benefit of the Company. Executive further agrees that any and all products, inventions, discoveries or improvements developed by Executive (whether or not able to be protected by copyright, patent or trademark) in the scope of his employment, or involving the use of the Company’s time, materials or other resources, shall be promptly disclosed to the Company and shall become the exclusive property of the Company. Upon any termination of Executive’s employment or engagement with the Company, Executive shall immediately return all Confidential Information (and all tangible embodiments thereof) possessed by Executive to the Company.

10.Restrictive Covenants.

10.1Non-Competition. Because of Executive’s unique and specialized position within Company and Executive’s access to and familiarity with Company’s Confidential business methodologies, Executive agrees that, during the Employment Term and for a period of one (1) year following a termination of Executive’s employment for any reason (the “Non-Compete Period”), Executive shall not, without the prior written consent of the Company, directly or indirectly, own, manage, operate, control, be connected with as an officer, employee, partner, consultant or otherwise, or otherwise engage or participate in (except as an employee of the Company, or its Affiliates) any Person engaged in the operation, ownership or management of a bank, trust company, wealth management or financial services business within the Metropolitan Statistical Areas of St. Louis, Missouri, Kansas City, Missouri, Phoenix, Arizona or any other city in which the Company or any of its Affiliates has an office at the time of such termination. Notwithstanding the foregoing, the ownership by Executive of less than 1% of any class of the outstanding capital stock of any corporation conducting such a competitive business which is regularly traded on a national securities exchange or in the over-the-counter market shall not be a violation of the foregoing covenant.

10.2Non-Solicitation.

(a)During the Employment Term and continuing during the Non-Compete Period, Executive shall not, except on behalf of or with the prior written consent of the Company, directly or indirectly, whether alone or in association, or combination with any other Person, or as an officer, director, shareholder, member, manager, employee, agent, independent contractor, consultant, advisor, joint venturer, partner or otherwise and whether or not for pecuniary benefit:

(i)solicit, take away, attempt to take away, divert, attempt to divert, engage in business with, contract with or in any way interfere with the relationship between any Customer or Prospective Customer (in each case, as defined below) and the Company or its Affiliates.

(ii)(A) hire or employ any other employee of the Company or its Affiliates, (B) entice, solicit, recruit or induce any other employee of the Company or its Affiliates to leave such employ or (C) otherwise interfere with the employment of any other employee of the Company or its Affiliates.

(b)Before Executive becomes employed by or becomes a consultant for a Person during the Non-Compete Period, Executive shall inform such Person of the provisions of this Section 10.2 and, if within the first year following Executive’s termination of employment with the Company, shall cause such Person to sign a document acknowledging this provision and agreeing with the Company, on behalf of itself and its Affiliates, to abide to the terms of such obligation to not solicit, take away, conduct any wealth management or banking business with, attempt to take away, divert or attempt to divert, any Protected Customer, and deliver such document to the Company. Provided, however, that nothing contained herein shall prevent such Person employing Executive from continuing to provide services to any individual or other entity that was a customer of the Person prior to the date of the termination of Executive’s employment with the Company. Company may advise any third party with whom Executive may consider, establish or contract a relationship, including but not limited to an employment relationship of this Agreement and its terms, and the Company shall have no liability for so acting.

(c)For purposes of this Agreement, “Protected Customer” means any Person and its/his/her Affiliate (i) for whom the Company or any of its Affiliates has provided financial services, including without limitation wealth management, sales of tax credits, investment, banking, trust, insurance or other financial services within the twenty-four (24) month period prior to the termination of Executive’s employment with the Company or (ii) to whom the Executive on behalf of the Company or any of its Affiliates had made a proposal to provide any financial services, including without limitation wealth management, sales of tax credits, mortgage lending investment, banking, trust, insurance or other financial services, at any time within twelve (12) months preceding the termination of Executive’s employment with the Company.

10.3Saving Provision. The parties hereto agree that, in the event a court of competent jurisdiction shall determine that the geographical, durational or other elements of this covenant are unenforceable, such determination shall not render the entire covenant unenforceable. Rather, the excessive aspects of the covenant shall be reduced to the threshold which is enforceable, and the remaining aspects shall not be affected thereby. The parties intend that the restrictions of this Section

10 be given the construction that renders their provisions valid and enforceable to the maximum extent possible under applicable law.

10.4Equitable Relief. Executive acknowledges that the extent of damages to the Company from a breach of Sections 8, 9 and 10 of this Agreement would not be readily quantifiable or ascertainable, that monetary damages would be inadequate to make the Company whole in case of such a breach, and that there is not and would not be an adequate remedy at law for such a breach. Therefore, Executive specifically agrees that the Company is entitled to injunctive or other equitable relief (without any requirement to post any bond or other security) from a breach of Sections 8, 9 and 10 of this Agreement, and hereby waives and covenants not to assert against a prayer for such relief that there exists an adequate remedy at law, in monetary damages or otherwise.

10.5Tolling. Executive agrees that, in the event of a breach of any of the provisions of this Section 10, the time period specified in such provisions shall be extended by the number of days between the date of such breach and the date such breach is enjoined or other relief is granted to the Company by a court of competent jurisdiction. It is the intention of the parties that the Company shall enjoy the faithful performance by Executive of the covenants specified in this Section 10 for the full time periods specified herein.

10.6Reasonableness of Restrictive Covenants. Executive recognizes that as an employee and/or officer of the Company, (i) Executive will have substantial customer contacts, perform special and unique duties and services for the Company and its Affiliates and acquire Confidential Information, (ii) the Confidential Information is the property of the Company and its Affiliates and the use, misappropriation, or disclosure of the Confidential Information would constitute a breach of trust and could cause irreparable injury to the Company and its Affiliates; and it is essential to the protection of the Company’s and its Affiliates’ good will and to the maintenance of the Company’s and its Affiliates’ competitive position that the Confidential Information be kept secret, and (iii) the Company and its Affiliates have a valid, protectable right and business interest in preserving the relationships described in this Agreement. The Company and Executive further agree that but for Executive’s agreement to the provisions of Sections 8, 9 and 10 of this Agreement, Executive would not be eligible for employment by the Company on an “at will” basis and for no definite term and the Company would not make available or continue to make available to Executive the Confidential Information. Executive further agrees that: (A) the covenants and agreements contained herein are reasonable and necessary in order to protect the legitimate business interests of the Company and its Affiliates; and (B) the enforcement of such covenants would not unreasonably impair Executive’s ability to earn a livelihood.

11.Assignment. This Agreement is personal to Executive and shall not be assignable by him.

12.Entire Agreement. This Agreement and any agreements entered into after the date hereof under any of the Company’s benefit plans or compensation programs as described in Section 4 contain the complete agreement concerning the employment arrangement between the parties, including without limitation severance or termination pay, and shall, as of the Effective Date, supersede all other agreements or arrangements between the parties with regard to the subject matter hereof.

13.Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. The obligations of the Company under this Agreement shall not be terminated by reason of any liquidation, dissolution, bankruptcy, cessation of business or similar event relating to the Company. This Agreement shall not be

terminated by reason of any merger, consolidation or reorganization of the Company, but shall be binding upon and inure to the benefit of the surviving or resulting entity.

14.Modification. No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless authorized by the Company Board and reduced to in writing and duly executed by the party to be charged therewith and no evidence of any waiver or modification shall be offered or received in evidence of any proceeding, arbitration, or litigation between the parties hereto arising out of or affecting this Agreement, or the rights or obligations of the parties thereunder, unless such waiver or modification is in writing, duly executed as aforesaid.

15.Severability. All agreements and covenants contained herein are severable, and in the event any of them shall be held to be invalid or unenforceable by any court of competent jurisdiction, this Agreement shall be interpreted as if such invalid agreements or covenants were not contained herein.

16.Manner of Giving Notice. All notices, requests and demands to or upon the respective parties hereto shall be sent by hand, certified mail, overnight air courier service, in each case with all applicable charges paid or otherwise provided for, addressed as follows, or to such other address as may hereafter be designated in writing by the respective parties hereto:

To Company:To Executive: at his current

Enterprise Bank & Trustresidential address on file with

150 North Meramecthe Company.

Clayton, Missouri 63105

Attention:President

and Corporate Secretary

Such notices, requests and demands shall be deemed to have been given or made on the date of delivery if delivered by hand or by telecopy and on the next following date if sent by mail or by air courier service.

17.Remedies. In the event of a breach of this Agreement, the non-breaching party shall be entitled to such legal and equitable relief as may be provided by law, and shall further be entitled to recover all costs and expenses, including reasonable attorneys’ fees, incurred in enforcing the non-breaching party’s rights hereunder.

18.Headings. The headings have been inserted for convenience only and shall not be deemed to limit or otherwise affect any of the provisions of this Agreement.

19.Choice of Law. It is the intention of the parties hereto that this Agreement and the performance hereunder be construed in accordance with, under and pursuant to the laws of the State of Missouri without regard to the jurisdiction in which any action or special proceeding may be instituted.

20.Taxes. The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment and social insurance taxes, as shall be required by law.

21.Voluntary Agreement; No Conflicts. Executive hereby represents and warrants to the Company that he is legally free to accept and perform his employment with the Company, that he has no obligation to any other person or entity that would affect or conflict with any of Executive’s obligations pursuant to such employment, and that the complete performance of the obligations pursuant to Executive’s employment will not violate any order or decree of any governmental or judicial body or contract by which

Executive is bound. The Company will not request or require, and Executive agrees not to use, in the course of Executive’s employment with the Company, any information obtained in Executive’s employment with any previous employer to the extent that such use would violate any contract by which Executive is bound or any decision, law, regulation, order or decree of any governmental or judicial body.

22.Term of Agreement; Survival of Certain Provisions. The provisions of this Agreement shall survive in accordance with their respective terms. Without limiting the foregoing, the terms of Sections 8, 9 and 10 shall survive and remain in effect in accordance with their terms following any termination of this Agreement or the termination or expiration of the Employment Term for any reason whatsoever.

23.Venue. In the event of litigation arising out of or in connection with this Agreement, the parties hereto agree to submit to the jurisdiction of the state courts located in the County of St. Louis, Missouri.

[The remainder of this page is intentionally blank. The next page is the signature page.]

IN WITNESS WHEREOF, the undersigned have executed this Agreement effective as of the Effective Date first stated above.

ENTERPRISE FINANCIAL SERVICES CORP
By:	/s/ Peter F. Benoist
	Peter F. Benoist
	Chief Executive Officer
EXECUTIVE
By:	/s/ Keene S. Turner
	Keene S. Turner

EX-12.1

Exhibit 12.1

Enterprise Financial Services Corp

Statement Regarding Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividend Requirement (unaudited)

	Nine Months Ended September 30,			Years ended December 31,
($ in thousands)	2013			2012			2011			2010			2009 (2)			2008
Earnings (1):
Income (loss) before income taxes	$	44,903		$	41,914		$	37,372		$	6,396		$	(49,321	)	$	11,738
Add: Fixed charges from below	14,073			27,899			33,866			35,242			51,396			60,454
Earnings including interest expense on deposits (a)	$	58,976		$	69,813		$	71,238		$	41,638		$	2,075		$	72,192
Less: interest expense on deposits	(8,471		)	(15,406		)	(21,658		)	(22,867		)	(30,203		)	(39,920		)
Earnings excluding interest expense on deposits (b)	$	50,505		$	54,407		$	49,580		$	18,771		$	(28,128	)	$	32,272
Fixed charges (1):
Interest on deposits	$	8,471		$	15,406		$	21,658		$	22,867		$	30,203		$	39,920
Interest on borrowings	5,602			7,761			8,497			9,544			18,642			20,418
TARP preferred stock dividends (pre-tax)	—			4,732			3,711			2,831			2,551			116
Fixed charges including interest on deposits (c)	$	14,073		$	27,899		$	33,866		$	35,242		$	51,396		$	60,454
Less: interest expense on deposits	(8,471		)	(15,406		)	(21,658		)	(22,867		)	(30,203		)	(39,920		)
Fixed charges excluding interest expense on deposits (d)	$	5,602		$	12,493		$	12,208		$	12,375		$	21,193		$	20,534
Ratio of earnings to combined fixed charges
Excluding interest on deposits (b/d) (3)	9.02x			4.35x			4.06x			1.52x			-1.33x			1.57x
Including interest on deposits (a/c)	4.19x			2.50x			2.10x			1.18x			0.04x			1.19x
Ratio of earnings to combined fixed charges and preferred dividends:
Excluding interest on deposits (b/d) (3)	9.02x			6.40x			5.40x			1.67x			-1.65x			1.57x
Including interest on deposits (a/c)	4.19x			2.81x			2.24x			1.20x			-0.01x			1.19x

(1) As defined in Item 503(d) of Regulation S-K.

(2) Due to the Company's $46.7 million loss (including $45.4 million of goodwill impairment charges) for the year ended December 31, 2009, the ratio coverage was less than 1:1. The Company would have had to generate additional earnings of $49.3 million to achieve a coverage ratio of 1:1.

(3) The ratio of earnings to fixed charges and preferred dividends, excluding interest on deposits, is being provided as an additional measure to provide comparability to the ratios disclosed by all other issuers of debt securities.

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Peter F. Benoist, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Enterprise Financial Services Corp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:	/s/ Peter F. Benoist	Date:	November 12, 2013
Peter F. Benoist
Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Frank H. Sanfilippo, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Enterprise Financial Services Corp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:	/s/ Frank H. Sanfilippo	Date:	November 12, 2013
Frank H. Sanfilippo
Chief Operating Officer (Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Enterprise Financial Services Corp (the “Company”) on Form 10-Q for the period ended September 30, 2013 as filed with the Securities and Exchange Commission (the “Report”), I, Peter F. Benoist, Chief Executive Officer of the Company, certify to the best of my knowledge and belief, pursuant to 18 U.S.C. § 1350, as enacted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Peter F. Benoist

Peter F. Benoist

Chief Executive Officer

November 12, 2013

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Enterprise Financial Services Corp (the “Company”) on Form 10-Q- for the period ended September 30, 2013 as filed with the Securities and Exchange Commission (the “Report”), I, Frank H. Sanfilippo, Principal Financial Officer of the Company, certify to the best of my knowledge and belief, pursuant to 18 U.S.C. § 1350, as enacted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Frank H. Sanfilippo

Frank H. Sanfilippo

Chief Operating Officer (Principal Financial Officer)

November 12, 2013

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Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Below is a description of certain assets and liabilities measured at fair value.

The following table summarizes financial instruments measured at fair value on a recurring basis as of September 30, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

	September 30, 2013
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	93,974	$	—	$	93,974
Obligations of states and political subdivisions	—		48,151		3,042		51,193
Residential mortgage-backed securities	—		307,879		—		307,879
Total securities available for sale	$	—	$	450,004	$	3,042	$	453,046
State tax credits held for sale	—		—		20,139		20,139
Derivative financial instruments	—		1,128		—		1,128
Total assets	$	—	$	451,132	$	23,181	$	474,313
Liabilities
Derivative financial instruments	$	—	$	1,114	$	—	$	1,114
Total liabilities	$	—	$	1,114	$	—	$	1,114

• Securities available for sale. Securities classified as available for sale are reported at fair value utilizing Level 2 and Level 3 inputs. The Company obtains fair value measurements from an independent pricing service. Fair values for Level 2 securities are based upon dealer quotes, market spreads, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions at the security level. At September 30, 2013, Level 3 securities available for sale consist primarily of three Auction Rate Securities that are valued based on the securities' estimated cash flows, yields of comparable securities, and live trading levels.

• Portfolio Loans. Certain fixed rate portfolio loans are accounted for as trading instruments and reported at fair value. Fair value on these loans is determined using a third party valuation model with observable Level 2 market data inputs.

• State tax credits held for sale. At September 30, 2013, of the $55.8 million of state tax credits held for sale on the condensed consolidated balance sheet, approximately $20.1 million were carried at fair value. The remaining $35.7 million of state tax credits were accounted for at cost.

The Company is not aware of an active market that exists for the 10-year streams of state tax credit financial instruments. However, the Company’s principal market for these tax credits consists of Missouri state residents who buy these credits and from local and regional accounting firms who broker them. As such, the Company employed a discounted cash flow analysis (income approach) to determine the fair value.

The fair value measurement is calculated using an internal valuation model with observable market data including discounted cash flows based upon the terms and conditions of the tax credits. If the underlying project remains in compliance with the various federal and state rules governing the tax credit program, each project will generate about 10 years of tax credits. The inputs to the discounted cash flow calculation include: the amount of tax credits generated each year, the anticipated sale price of the tax credit, the timing of the saleand a discount rate. The discount rate is estimated using the LIBOR swap curve at a point equal to the remaining life in years of credits plus a 205 basis point spread. With the exception of the discount rate, the other inputs to the fair value calculation are observable and readily available. The discount rate is considered a Level 3 input because it is an “unobservable input” and is based on the Company’s assumptions. An increase in the discount rate utilized would generally result in a lower estimated fair value of the tax credits. Alternatively, a decrease in the discount rate utilized would generally result in a higher estimated fair value of the tax credits. Given the significance of this input to the fair value calculation, the state tax credit assets are reported as Level 3 assets.

• Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The Company obtains counterparty quotations to value its interest rate swaps and caps. In addition, the Company validates the counterparty quotations with third party valuation sources. Derivatives with negative fair values are included in Other liabilities in the consolidated balance sheets. Derivatives with positive fair value are included in Other assets in the consolidated balance sheets.

Level 3 financial instruments

The following table presents the changes in Level 3 financial instruments measured at fair value on a recurring basis for the periods ended September 30, 2013 and 2012, respectively.

• Purchases, sales, issuances and settlements, net. There were no Level 3 purchases during the quarter ended September 30, 2013 or 2012.

• Transfers in and/or out of Level 3. The transfer out of Level 3 during the period ended March 31, 2012 was related to a mortgage-backed security purchased in the fourth quarter of 2011 which was originally priced using Level 3 assumptions. In the first quarter of 2012, a third party pricing service, utilizing Level 2 assumptions, became available as more data was available on the new security.

	Securities available for sale, at fair value
	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013			2012
Beginning balance	$	3,039	$	3,042	$	3,049		$	6,763
Total (losses) gains:
Included in other comprehensive income	3		5		(7		)	20
Purchases, sales, issuances and settlements:
Purchases	—		—		—			—
Transfer in and/or out of Level 3	—		—		—			(3,736		)
Ending balance	$	3,042	$	3,047	$	3,042		$	3,047
Change in unrealized (losses) gains relating to assets still held at the reporting date	$	3	$	5	$	(7	)	$	20

	State tax credits held for sale
	Three months ended September 30,					Nine months ended September 30,
(in thousands)	2013		2012			2013			2012
Beginning balance	$	19,822	$	24,836		$	23,020		$	26,350
Total gains:
Included in earnings	317		264			422			994
Purchases, sales, issuances and settlements:
Sales	—		(31		)	(3,303		)	(2,275		)
Ending balance	$	20,139	$	25,069		$	20,139		$	25,069
Change in unrealized gains relating to assets still held at the reporting date	$	317	$	257		$	(456	)	$	439

From time to time, the Company measures certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. The following table presents financial instruments and non-financial assets measured at fair value on a non-recurring basis as of September 30, 2013:

	(1)		(1)		(1)		(1)
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (losses) gains for the three months ended September 30, 2013			Total (losses) gains for the nine months ended September 30, 2013
Impaired loans	$	3,172	$	—	$	—	$	3,172	$	(2,514	)	$	(8,046	)
Other real estate	7,528		—		—		7,528		(207		)	(961		)
Total	$	10,700	$	—	$	—	$	10,700	$	(2,721	)	$	(9,007	)

(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date.

Impaired loans are reported at the fair value of the underlying collateral or by determining the net present value of future cash flows. Fair values for collateral dependent impaired loans are obtained from current appraisals by qualified licensed appraisers or independent valuation specialists. Fair values of impaired loans that are not collateral dependent are determined by using a discounted cash flow model to determine the net present value of future cash flows. Other real estate owned is adjusted to fair value upon foreclosure of the loan collateral. Subsequently, foreclosed assets are carried at the lower of carrying value or fair value less costs to sell. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions.

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at September 30, 2013, and December 31, 2012.

	September 30, 2013				December 31, 2012
(in thousands)	Carrying Amount		Estimated fair value		Carrying Amount		Estimated fair value
Balance sheet assets
Cash and due from banks	$	35,238	$	35,238	$	21,906	$	21,906
Federal funds sold	111		111		51		51
Interest-bearing deposits	71,191		71,191		95,413		95,413
Securities available for sale	453,046		453,046		640,212		640,212
Other investments, at cost	15,485		15,485		14,294		14,294
Loans held for sale	12,967		12,967		11,792		11,792
Derivative financial instruments	1,128		1,128		1,754		1,754
Portfolio loans, net	2,229,406		2,229,411		2,261,280		2,267,038
State tax credits, held for sale	55,810		60,937		61,284		66,822
Accrued interest receivable	7,897		7,897		8,497		8,497
Balance sheet liabilities
Deposits	2,447,917		2,453,970		2,658,851		2,669,113
Subordinated debentures	63,081		40,474		85,081		65,840
Federal Home Loan Bank advances	120,000		126,234		80,000		89,301
Other borrowings	178,165		178,228		245,070		245,224
Derivative financial instruments	1,114		1,114		1,979		1,979
Accrued interest payable	885		885		1,282		1,282

For information regarding the methods and assumptions used to estimate the fair value of each class of financial instruments for which it is practical to estimate such value, refer to Note 20–Fair Value Measurements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

The following table presents the level in the fair value hierarchy for the estimated fair values of only the Company’s financial instruments that are not already presented on the condensed consolidated balance sheets at fair value at September 30, 2013, and December 31, 2012:

	Estimated Fair Value Measurement at Reporting Date Using						Balance at September 30, 2013
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Portfolio loans, net	$	—	$	—	$	2,229,411	$	2,229,411
State tax credits, held for sale	$	—	$	—	$	40,798	$	40,798
Financial Liabilities:
Deposits	1,825,274		—		628,696		2,453,970
Subordinated debentures	—		40,474		—		40,474
Federal Home Loan Bank advances	—		126,234		—		126,234
Other borrowings	—		178,228		—		178,228
	Estimated Fair Value Measurement at Reporting Date Using						Balance at December 31, 2012
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Portfolio loans, net	$	—	$	—	$	2,266,834	$	2,266,834
State tax credits, held for sale	$	—	$	—	$	43,802	$	43,802
Financial Liabilities:
Deposits	2,079,141		—		589,972		2,669,113
Subordinated debentures	—		65,840		—		65,840
Federal Home Loan Bank advances	—		89,301		—		89,301
Other borrowings	—		245,224		—		245,224

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Segment Reporting (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 segment	Sep. 30, 2012	Dec. 31, 2012
Segment Reporting [Abstract]
Number of Primary Operating Segments			2
Number of Reportable Segments			2
Segment Reporting Information [Line Items]
Goodwill	$ 30,334		$ 30,334		$ 30,334
Intangibles, net	6,136		6,136		7,406
Deposits	2,447,917		2,447,917		2,658,851
Total assets	3,108,062		3,108,062		3,325,786
Income Statement Information
Net interest income (expense)	32,574	37,484	102,781	102,246
Provision for loan losses	2,159	11,937	(305)	16,221
Noninterest Income	3,716	7,832	4,953	12,660
Noninterest Expense	21,240	21,282	63,136	64,060
Income before income tax expense	12,891	12,097	44,903	34,625
Banking
Segment Reporting Information [Line Items]
Total assets	2,994,008		2,994,008		3,195,096
Income Statement Information
Net interest income (expense)	33,476	38,627	105,738	105,646
Provision for loan losses	2,159	11,937	(305)	16,221
Noninterest Income	1,684	5,418	(1,758)	5,571
Noninterest Expense	17,898	18,063	53,137	54,424
Income before income tax expense	15,103	14,045	51,148	40,572
Wealth Management
Segment Reporting Information [Line Items]
Total assets	96,943		96,943		112,020
Income Statement Information
Net interest income (expense)	(166)	(252)	(292)	(566)
Provision for loan losses	0	0	0	0
Noninterest Income	2,006	2,088	6,611	6,718
Noninterest Expense	1,809	1,968	5,644	5,761
Income before income tax expense	31	(132)	675	391
Corporate and Intercompany
Segment Reporting Information [Line Items]
Total assets	17,111		17,111		18,670
Income Statement Information
Net interest income (expense)	(736)	(891)	(2,665)	(2,834)
Provision for loan losses	0	0	0	0
Noninterest Income	26	326	100	371
Noninterest Expense	1,533	1,251	4,355	3,875
Income before income tax expense	$ (2,243)	$ (1,816)	$ (6,920)	$ (6,338)

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest income:
Interest and fees on loans	$ 34,396	$ 39,886	$ 109,330	$ 111,519
Interest on debt securities:
Taxable	2,043	2,628	6,210	7,440
Nontaxable	301	264	907	734
Interest on interest-bearing deposits	37	53	130	195
Dividends on equity securities	106	43	277	230
Total interest income	36,883	42,874	116,854	120,118
Interest expense:
Interest-bearing transaction accounts	99	182	360	566
Money market accounts	714	1,024	2,348	3,694
Savings	56	68	171	209
Certificates of deposit:
$100 and over	1,326	1,691	4,207	5,500
Other	439	597	1,385	2,103
Subordinated debentures	679	982	2,580	3,111
Federal Home Loan Bank advances	757	721	2,221	2,327
Notes payable and other borrowings	239	125	801	362
Total interest expense	4,309	5,390	14,073	17,872
Net interest income	32,574	37,484	102,781	102,246
Provision for loan losses not covered under FDIC loss share	(652)	1,048	(3,094)	2,841
Provision for loan losses covered under FDIC loss share	2,811	10,889	2,789	13,380
Net interest income after provision for loan losses	30,415	25,547	103,086	86,025
Noninterest income:
Wealth Management revenue	1,698	1,825	5,419	5,525
Service charges on deposit accounts	1,768	1,456	5,025	4,199
Other service charges and fee income	722	676	2,030	1,848
Gain on sale of other real estate	472	739	1,562	3,152
Gain on state tax credits, net	308	256	1,214	1,180
Gain on sale of investment securities	611	0	1,295	1,156
Change in FDIC loss share receivable	(2,849)	1,912	(13,647)	(6,738)
Miscellaneous income	986	968	2,055	2,338
Total noninterest income	3,716	7,832	4,953	12,660
Noninterest expense:
Employee compensation and benefits	10,777	11,441	33,006	32,956
Occupancy	1,333	1,399	4,098	4,162
Furniture and equipment	356	384	1,200	1,234
Data processing	1,143	881	3,000	2,530
FDIC and other insurance	900	862	2,592	2,658
Loan legal and other real estate expense	1,247	1,187	3,355	5,216
Professional Fees	1,041	1,288	3,394	3,640
Other	4,443	3,840	12,491	11,664
Total noninterest expense	21,240	21,282	63,136	64,060
Income before income tax expense	12,891	12,097	44,903	34,625
Income tax expense	4,481	4,167	15,420	11,744
Net income	8,410	7,930	29,483	22,881
Net Income (Loss) Available to Common Stockholders, Basic	$ 8,410	$ 7,282	$ 29,483	$ 20,948
Earnings per common share
Basic	$ 0.45	$ 0.41	$ 1.61	$ 1.17
Diluted	$ 0.44	$ 0.39	$ 1.55	$ 1.14

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used by Enterprise Financial Services Corp (the “Company” or “Enterprise”) in the preparation of the condensed consolidated financial statements are summarized below:

Business and Consolidation

Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers located in the St. Louis, Kansas City and Phoenix metropolitan markets through its banking subsidiary, Enterprise Bank & Trust (the “Bank”).

Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2013. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Basis of Financial Statement Presentation

The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and footnotes required by U.S. GAAP for annual financial statements. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The Company has adopted the new accounting guidance surrounding comprehensive income by presenting a separate Statement of Comprehensive Income. The Statement of Comprehensive Income includes the amount and the related tax impact that have been reclassified from accumulated other comprehensive income to net income. The reclassification adjustment for unrealized gain on sale of securities included in net income has been recorded through the gain on sale of investment securities line item, within noninterest income, in the Company's Condensed Consolidated Statements of Operations.

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Portfolio Loans Covered by Loss Share (Covered loans) (Tables)

9 Months Ended

Sep. 30, 2013

Covered Loans [Line Items]

Summary of Covered Loans by Category

Below is a summary of Covered loans by category at September 30, 2013, and December 31, 2012:

	September 30, 2013			December 31, 2012
(in thousands)	Weighted- Average Risk Rating	Recorded Investment Covered Loans		Weighted- Average Risk Rating	Recorded Investment Covered Loans
Real Estate Loans:
Construction and Land Development	6.96		$15,332	7.06		$30,537
Commercial real estate - Investor Owned	6.54	51,842		6.08	57,602
Commercial real estate - Owner Occupied	6.87	43,252		6.65	47,140
Residential real estate	5.95	37,446		5.68	42,531
Total real estate loans			$147,872			$177,810
Commercial and industrial	6.99	9,095		6.57	22,034
Consumer & other	6.43	1,845		4.19	1,274
Portfolio Loans			$158,812			$201,118

Rollforward of Covered Loans [Table Text Block]

The following table is a rollforward of Covered loans, net of the allowance for loan losses, for the nine months ended September 30, 2013 and 2012.

(In thousands)	Contractual Cashflows			Less: Non-accretable Difference			Less: Accretable Yield			Carrying Amount
Balance January 1, 2013	$	386,966		$	118,627		$	78,768		$	189,571
Principal reductions and interest payments	(37,421		)	—			—			(37,421		)
Accretion of loan discount	—			—			(19,987		)	19,987
Changes in contractual and expected cash flows due to remeasurement	9,216			(10,858		)	14,233			5,841
Reductions due to disposals	(68,953		)	(23,867		)	(12,288		)	(32,798		)
Balance September 30, 2013	$	289,808		$	83,902		$	60,726		$	145,180
Balance January 1, 2012	$	618,791		$	256,481		$	63,335		$	298,975
Principal reductions and interest payments	(68,783		)	—			—			(68,783		)
Accretion of loan discount	—			—			(22,231		)	22,231
Changes in contractual and expected cash flows due to remeasurement	1,671			(67,401		)	67,178			1,894
Reductions due to disposals	(107,669		)	(50,846		)	(12,837		)	(43,986		)
Balance September 30, 2012	$	444,010		$	138,234		$	95,445		$	210,331

FDIC Loss Share Receivable [Table Text Block]

A summary of activity in the FDIC loss share receivable for the nine months ended September 30, 2013 is as follows:

(In thousands)	September 30, 2013
Balance at beginning of period	$	61,475
Adjustments not reflected in income:
Cash received from the FDIC for covered assets	(9,654		)
FDIC reimbursable losses, net	1,880
Adjustments reflected in income:
Amortization, net	(9,574		)
Loan impairment (recapture)	2,205
Reductions for payments on covered assets in excess of expected cash flows	(6,278		)
Balance at end of period	$	40,054

Covered Loans

Covered Loans [Line Items]

Summary of Aging of the Recorded Investment in Past Due Covered Loans by Portfolio Class and Category

The aging of the recorded investment in past due Covered loans by portfolio class and category at September 30, 2013, and December 31, 2012, is shown below.

	September 30, 2013
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	1,642	$	1,166	$	2,808	$	6,287	$	9,095
Real Estate:
Commercial - Owner Occupied	3,323		5,024		8,347		34,905		43,252
Commercial - Investor Owned	1,653		4,465		6,118		45,724		51,842
Construction and Land Development	—		3,886		3,886		11,446		15,332
Residential	673		6,591		7,264		30,182		37,446
Consumer & Other	—		—		—		1,845		1,845
Total	$	7,291	$	21,132	$	28,423	$	130,389	$	158,812

	December 31, 2012
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	319	$	3,925	$	4,244	$	17,790	$	22,034
Real Estate:
Commercial - Owner Occupied	887		5,144		6,031		41,109		47,140
Commercial - Investor Owned	308		665		973		56,629		57,602
Construction and Land Development	36		13,532		13,568		16,969		30,537
Residential	1,232		2,907		4,139		38,392		42,531
Consumer & Other	1		2		3		1,271		1,274
Total	$	2,783	$	26,175	$	28,958	$	172,160	$	201,118

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Segment Reporting

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

The Company has two primary operating segments, Banking and Wealth Management, which are delineated by the products and services that each segment offers. The segments are evaluated separately on their individual performance, as well as their contribution to the Company as a whole.

The Banking operating segment consists of a full-service commercial bank, with locations in St. Louis, Kansas City, and Phoenix. The majority of the Company’s assets and income result from the Banking segment. All banking locations have the same product and service offerings, have similar types and classes of customers and utilize similar service delivery methods. Pricing guidelines and operating policies for products and services are the same across all regions.

The Banking operating segment also includes activities surrounding the assets acquired under FDIC loss share agreements. 

The Wealth Management operating segment includes the Trust division of the Bank and the state tax credit brokerage activities. The Trust division provides estate planning, investment management, and retirement planning as well as strategic planning and management succession issues. State tax credits are part of a fee initiative designed to augment the Company’s Wealth Management segment and Banking lines of business.

The Company's Corporate and Intercompany activities represent the elimination of items between segments as well as Corporate related items that management feels are not allocable to either of the two respective segments.

The financial information for each business segment reflects that information which is specifically identifiable or which is allocated based on an internal allocation method. There were no material intersegment revenues among the two segments. Management periodically makes changes to methods of assigning costs and income to its business segments to better reflect operating results. When appropriate, these changes are reflected in prior year information presented below.

Following are the financial results for the Company’s operating segments.

(in thousands)	Banking			Wealth Management			Corporate and Intercompany			Total
	Three months ended September 30,
Income Statement Information	2013
Net interest income (expense)	$	33,476		$	(166	)	$	(736	)	$	32,574
Provision for loan losses	2,159			—			—			2,159
Noninterest income	1,684			2,006			26			3,716
Noninterest expense	17,898			1,809			1,533			21,240
Income (loss) before income tax expense (benefit)	15,103			31			(2,243		)	12,891
	2012
Net interest income (expense)	$	38,627		$	(252	)	$	(891	)	$	37,484
Provision for loan losses	11,937			—			—			11,937
Noninterest income	5,418			2,088			326			7,832
Noninterest expense	18,063			1,968			1,251			21,282
Income (loss) before income tax expense (benefit)	14,045			(132		)	(1,816		)	12,097
	Nine months ended September 30,
Income Statement Information	2013
Net interest income (expense)	$	105,738		$	(292	)	$	(2,665	)	$	102,781
Provision for loan losses	(305		)	—			—			(305		)
Noninterest income	(1,758		)	6,611			100			4,953
Noninterest expense	53,137			5,644			4,355			63,136
Income (loss) before income tax expense (benefit)	51,148			675			(6,920		)	44,903
	2012
Net interest income (expense)	$	105,646		$	(566	)	$	(2,834	)	$	102,246
Provision for loan losses	16,221			—			—			16,221
Noninterest income	5,571			6,718			371			12,660
Noninterest expense	54,424			5,761			3,875			64,060
Income (loss) before income tax expense (benefit)	40,572			391			(6,338		)	34,625
Balance Sheet Information	September 30, 2013						December 31, 2012
Total assets:
Banking	$	2,994,008					$	3,195,096
Wealth Management	96,943						112,020
Corporate and Intercompany	17,111						18,670
Total	3,108,062						3,325,786

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Fair Value Measurements - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Assets
Securities available for sale	$ 453,046	$ 640,212
State tax credits held for sale	20,139	23,020
Liabilities
State tax credits, held for sale	55,810	61,284
Tax credit stream, term	10 years
Years of tax credits generated	10 years
Obligations of U.S. Government sponsored enterprises
Assets
Securities available for sale	93,974	152,368
Obligations of states and political subdivisions
Assets
Securities available for sale	51,193	53,003
Residential mortgage-backed securities
Assets
Securities available for sale	307,879	434,841
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
State tax credits held for sale	0	0
Significant Other Observable Inputs (Level 2)
Assets
State tax credits held for sale	0	0
Significant Unobservable Inputs (Level 3)
Assets
State tax credits held for sale	40,798	43,802
Significant Unobservable Inputs (Level 3) | Auction Rate Securities
Liabilities
Number of securities	3
Total Fair Value
Assets
State tax credits held for sale	40,798	43,802
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Securities available for sale	0
State tax credits held for sale	0
Derivative financial instruments	0
Total assets	0
Liabilities
Derivative financial instruments	0
Total liabilities	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U.S. Government sponsored enterprises
Assets
Securities available for sale	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions
Assets
Securities available for sale	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities
Assets
Securities available for sale	0
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets
Securities available for sale	450,004
State tax credits held for sale	0
Derivative financial instruments	1,128
Total assets	451,132
Liabilities
Derivative financial instruments	1,114
Total liabilities	1,114
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. Government sponsored enterprises
Assets
Securities available for sale	93,974
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions
Assets
Securities available for sale	48,151
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities
Assets
Securities available for sale	307,879
Recurring basis | Significant Unobservable Inputs (Level 3)
Assets
Securities available for sale	3,042
State tax credits held for sale	20,139
Derivative financial instruments	0
Total assets	23,181
Liabilities
Derivative financial instruments	0
Total liabilities	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government sponsored enterprises
Assets
Securities available for sale	0
Recurring basis | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions
Assets
Securities available for sale	3,042
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities
Assets
Securities available for sale	0
Recurring basis | Total Fair Value
Assets
Securities available for sale	453,046
State tax credits held for sale	20,139
Derivative financial instruments	1,128
Total assets	474,313
Liabilities
Derivative financial instruments	1,114
Total liabilities	1,114
Recurring basis | Total Fair Value | Obligations of U.S. Government sponsored enterprises
Assets
Securities available for sale	93,974
Recurring basis | Total Fair Value | Obligations of states and political subdivisions
Assets
Securities available for sale	51,193
Recurring basis | Total Fair Value | Residential mortgage-backed securities
Assets
Securities available for sale	307,879
Portion at Fair Value, Fair Value Disclosure | Recurring basis | Total Fair Value
Assets
State tax credits held for sale	20,100
Portion at Other than Fair Value, Fair Value Disclosure
Assets
State tax credits held for sale	$ 35,700
LIBOR Swap Curve
Liabilities
Discount rate, basis point spread	205

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Portfolio Loans Not Covered by Loss Share ("Non-covered") - Summary of Non-covered Loans Individually Evaluated for Impairment by Category (Details) (USD $)	3 Months Ended	9 Months Ended		12 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013 loan	Sep. 30, 2013 loan	Sep. 30, 2013 Non-Covered Loans	Dec. 31, 2012 Non-Covered Loans	Sep. 30, 2013 Non-Covered Loans Commercial & Industrial	Dec. 31, 2012 Non-Covered Loans Commercial & Industrial	Sep. 30, 2013 Non-Covered Loans Commercial Real Estate Owner Occupied	Dec. 31, 2012 Non-Covered Loans Commercial Real Estate Owner Occupied	Sep. 30, 2013 Non-Covered Loans Commercial Real Estate Investor Owned	Dec. 31, 2012 Non-Covered Loans Commercial Real Estate Investor Owned	Sep. 30, 2013 Non-Covered Loans Construction and Land Development	Dec. 31, 2012 Non-Covered Loans Construction and Land Development	Sep. 30, 2013 Non-Covered Loans Residential Real Estate	Dec. 31, 2012 Non-Covered Loans Residential Real Estate	Sep. 30, 2013 Non-Covered Loans Consumer & Other	Dec. 31, 2012 Non-Covered Loans Consumer & Other	Sep. 30, 2013 Unadvanced Commitment on Impaired Loan	Dec. 31, 2012 Unadvanced Commitment on Impaired Loan
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance			$ 26,399,000	$ 45,218,000	$ 6,333,000	$ 9,005,000	$ 191,000	$ 6,726,000	$ 11,969,000	$ 19,864,000	$ 7,206,000	$ 6,491,000	$ 700,000	$ 3,132,000	$ 0	$ 0
Recorded Investment With No Allowance			11,334,000	5,645,000	1,441,000	96,000	195,000	2,178,000	4,960,000	185,000	4,278,000	1,560,000	460,000	1,626,000	0	0
Recorded Investment With Allowance			13,416,000	33,082,000	4,642,000	8,838,000	0	3,594,000	6,158,000	16,577,000	2,389,000	3,135,000	227,000	938,000	0	0
Total Recorded Investment			24,750,000	38,727,000	6,083,000	8,934,000	195,000	5,772,000	11,118,000	16,762,000	6,667,000	4,695,000	687,000	2,564,000	0	0
Related Allowance			4,306,000	8,176,000	2,610,000	3,446,000	0	339,000	973,000	3,400,000	712,000	732,000	11,000	259,000	0	0
Average Recorded Investment			29,632,000	39,491,000	7,379,000	6,379,000	2,381,000	7,985,000	12,346,000	10,500,000	5,165,000	10,259,000	2,361,000	4,368,000	0	0
Table Text Block Supplement [Abstract]
Number of loans over 90 days past due and still accruing	0	0
Interest lost on impaired loans	410,000	1,453,643
Impaired Financing Receivable, Interest Income, Cash Basis Method	4,000	28,000
Impaired Financing Receivable, Interest Income, Accrual Method	0
Loans and Leases Receivable, Impaired Loans, Commitment to Lend																	1,724,000	775,000
Estimated losses attributable to unadvanced commitments on impaired loans																	$ 241,000	$ 124,000

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Financial Instruments Measured at Fair Value on a Recurring Basis

The following table summarizes financial instruments measured at fair value on a recurring basis as of September 30, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

	September 30, 2013
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets
Securities available for sale
Obligations of U.S. Government-sponsored enterprises	$	—	$	93,974	$	—	$	93,974
Obligations of states and political subdivisions	—		48,151		3,042		51,193
Residential mortgage-backed securities	—		307,879		—		307,879
Total securities available for sale	$	—	$	450,004	$	3,042	$	453,046
State tax credits held for sale	—		—		20,139		20,139
Derivative financial instruments	—		1,128		—		1,128
Total assets	$	—	$	451,132	$	23,181	$	474,313
Liabilities
Derivative financial instruments	$	—	$	1,114	$	—	$	1,114
Total liabilities	$	—	$	1,114	$	—	$	1,114

Fair Value, Financial Instruments, Unobservable Input Reconciliation

	Securities available for sale, at fair value
	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013			2012
Beginning balance	$	3,039	$	3,042	$	3,049		$	6,763
Total (losses) gains:
Included in other comprehensive income	3		5		(7		)	20
Purchases, sales, issuances and settlements:
Purchases	—		—		—			—
Transfer in and/or out of Level 3	—		—		—			(3,736		)
Ending balance	$	3,042	$	3,047	$	3,042		$	3,047
Change in unrealized (losses) gains relating to assets still held at the reporting date	$	3	$	5	$	(7	)	$	20

	State tax credits held for sale
	Three months ended September 30,					Nine months ended September 30,
(in thousands)	2013		2012			2013			2012
Beginning balance	$	19,822	$	24,836		$	23,020		$	26,350
Total gains:
Included in earnings	317		264			422			994
Purchases, sales, issuances and settlements:
Sales	—		(31		)	(3,303		)	(2,275		)
Ending balance	$	20,139	$	25,069		$	20,139		$	25,069
Change in unrealized gains relating to assets still held at the reporting date	$	317	$	257		$	(456	)	$	439

Fair Value Measurements, Nonrecurring

The following table presents financial instruments and non-financial assets measured at fair value on a non-recurring basis as of September 30, 2013:

	(1)		(1)		(1)		(1)
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (losses) gains for the three months ended September 30, 2013			Total (losses) gains for the nine months ended September 30, 2013
Impaired loans	$	3,172	$	—	$	—	$	3,172	$	(2,514	)	$	(8,046	)
Other real estate	7,528		—		—		7,528		(207		)	(961		)
Total	$	10,700	$	—	$	—	$	10,700	$	(2,721	)	$	(9,007	)

(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date.

Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets

Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at September 30, 2013, and December 31, 2012.

	September 30, 2013				December 31, 2012
(in thousands)	Carrying Amount		Estimated fair value		Carrying Amount		Estimated fair value
Balance sheet assets
Cash and due from banks	$	35,238	$	35,238	$	21,906	$	21,906
Federal funds sold	111		111		51		51
Interest-bearing deposits	71,191		71,191		95,413		95,413
Securities available for sale	453,046		453,046		640,212		640,212
Other investments, at cost	15,485		15,485		14,294		14,294
Loans held for sale	12,967		12,967		11,792		11,792
Derivative financial instruments	1,128		1,128		1,754		1,754
Portfolio loans, net	2,229,406		2,229,411		2,261,280		2,267,038
State tax credits, held for sale	55,810		60,937		61,284		66,822
Accrued interest receivable	7,897		7,897		8,497		8,497
Balance sheet liabilities
Deposits	2,447,917		2,453,970		2,658,851		2,669,113
Subordinated debentures	63,081		40,474		85,081		65,840
Federal Home Loan Bank advances	120,000		126,234		80,000		89,301
Other borrowings	178,165		178,228		245,070		245,224
Derivative financial instruments	1,114		1,114		1,979		1,979
Accrued interest payable	885		885		1,282		1,282

Estimate of the Fair Value of Financial Instruments Not Recorded at Fair Value on Balance Sheet

The following table presents the level in the fair value hierarchy for the estimated fair values of only the Company’s financial instruments that are not already presented on the condensed consolidated balance sheets at fair value at September 30, 2013, and December 31, 2012:

	Estimated Fair Value Measurement at Reporting Date Using						Balance at September 30, 2013
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Portfolio loans, net	$	—	$	—	$	2,229,411	$	2,229,411
State tax credits, held for sale	$	—	$	—	$	40,798	$	40,798
Financial Liabilities:
Deposits	1,825,274		—		628,696		2,453,970
Subordinated debentures	—		40,474		—		40,474
Federal Home Loan Bank advances	—		126,234		—		126,234
Other borrowings	—		178,228		—		178,228
	Estimated Fair Value Measurement at Reporting Date Using						Balance at December 31, 2012
(in thousands)	Level 1		Level 2		Level 3
Financial Assets:
Portfolio loans, net	$	—	$	—	$	2,266,834	$	2,266,834
State tax credits, held for sale	$	—	$	—	$	43,802	$	43,802
Financial Liabilities:
Deposits	2,079,141		—		589,972		2,669,113
Subordinated debentures	—		65,840		—		65,840
Federal Home Loan Bank advances	—		89,301		—		89,301
Other borrowings	—		245,224		—		245,224

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Not Designated as Hedging Instruments, Notional Amount And Statements of Financial Position, Location

The table below summarizes the notional amounts and fair values of the derivative instruments used to manage risk.

					Asset Derivatives (Other Assets)				Liability Derivatives (Other Liabilities)
	Notional Amount				Fair Value				Fair Value
(in thousands)	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
Non-designated hedging instruments
Interest rate cap contracts	$	34,050	$	49,050	$	14	$	13	$	—	$	—

The table below summarizes the notional amounts and fair values of the client-related derivative instruments.

					Asset Derivatives (Other Assets)				Liability Derivatives (Other Liabilities)
	Notional Amount				Fair Value				Fair Value
(in thousands)	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
Non-designated hedging instruments
Interest rate swap contracts	$	139,223	$	126,962	$	1,114	$	1,741	$	1,114	$	1,979

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table shows the location and amount of gains and losses recorded in the condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012.

	Location of Gain or (Loss) Recognized in Operations on Derivative	Amount of Gain or (Loss) Recognized in Operations on Derivative						Amount of Gain or (Loss) Recognized in Operations on Derivative
		Three months ended September 30,						Nine months ended September 30,
(in thousands)		2013			2012			2013			2012
Non-designated hedging instruments
Interest rate swap contracts	Interest and fees on loans	$	(32	)	$	(103	)	$	(205	)	$	(354	)

The following table shows the location and amount of gains and losses related to derivatives used for risk management purposes that were recorded in the condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012.

	Location of Gain or (Loss) Recognized in Operations on Derivative	Amount of Gain or (Loss) Recognized in Operations on Derivative						Amount of Gain or (Loss) Recognized in Operations on Derivative
		Three months ended September 30,						Nine months ended September 30,
(in thousands)		2013			2012			2013		2012
Non-designated hedging instruments
Interest rate cap contracts	Gain on state tax credits, net	$	(9	)	$	(14	)	$	1	$	(79	)

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Commitments and Contingencies (Details) (USD $)		9 Months Ended
	Sep. 30, 2013 charge_count Plantiff	Sep. 30, 2013 Maximum	Sep. 30, 2013 Minimum	Sep. 30, 2013 Roseman v. Martin Sigillito Minimum	Sep. 30, 2013 Commitments to extend credit	Dec. 31, 2012 Commitments to extend credit	Sep. 30, 2013 Standby letters of credit	Dec. 31, 2012 Standby letters of credit	Sep. 30, 2013 Unadvanced Commitment on Impaired Loan	Dec. 31, 2012 Unadvanced Commitment on Impaired Loan	Sep. 30, 2013 Fixed Rate Loan Commitment Commitments to extend credit	Dec. 31, 2012 Fixed Rate Loan Commitment Commitments to extend credit
Schedule of Commitments [Line Items]
Remaing Term of Letters Of Credit		5 years	6 months
Loans and Leases Receivable, Impaired Loans, Commitment to Lend									$ 1,724,000	$ 775,000
Estimated losses attributable to unadvanced commitments on impaired loans									241,000	124,000
Off-balance sheet financial instruments, contractual amounts					769,704,000	722,325,000	43,452,000	42,561,000			38,600,000	50,700,000
Loss contingency, damages sought, value				$ 44,000,000
Number of counts found guilty	20
Number of lawsuits, bank as defendant	41

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Investments - Schedule of Realized Gain (Loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Investments [Abstract]
Gross gains realized	$ 611	$ 0	$ 1,477	$ 1,399
Gross losses realized	0	0	(182)	(243)
Proceeds from sales	$ 36,710	$ 0	$ 159,604	$ 110,876

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Portfolio Loans Not Covered by Loss Share ("Non-covered") - Summary of Aging of Recorded Investment in Past Due Non-covered Loans by Portfolio Class and Category (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	$ 2,110,825	$ 2,106,039
Non-Covered Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	1,915	3,217
90 or More Days Past Due	10,899	8,278
Total Past Due	12,814	11,495
Current	2,098,011	2,094,544
Total	2,109,943	2,106,028
Total	2,110,825	2,106,039
Non-Covered Loans | Commercial & Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	445	14
90 or More Days Past Due	1,337	0
Total Past Due	1,782	14
Current	1,005,616	962,870
Total	1,007,398	962,884
Non-Covered Loans | Commercial Real Estate Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	442	1,352
90 or More Days Past Due	190	2,081
Total Past Due	632	3,433
Current	350,021	329,809
Total	350,653	333,242
Non-Covered Loans | Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	1,025	0
90 or More Days Past Due	6,842	4,045
Total Past Due	7,867	4,045
Current	443,235	482,422
Total	451,102	486,467
Non-Covered Loans | Construction and Land Development
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	1,201
90 or More Days Past Due	2,210	1,559
Total Past Due	2,210	2,760
Current	112,398	158,151
Total	114,608	160,911
Non-Covered Loans | Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	616
90 or More Days Past Due	320	593
Total Past Due	320	1,209
Current	150,000	144,349
Total	150,320	145,558
Non-Covered Loans | Consumer & Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	3	34
90 or More Days Past Due	0	0
Total Past Due	3	34
Current	36,741	16,943
Total	35,862	16,966
Total	$ 36,744	$ 16,977

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Fair Value Measurements - Fair Value, Financial Instruments, Unobservable Input Reconciliation (Details) (Recurring basis, USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Securities available for sale, at fair value
Level 3 Financial Instruments Measured at Fair Value
Beginning balance	$ 3,039,000	$ 3,042,000	$ 3,049,000	$ 6,763,000
Total gains (losses):
Included in other comprehensive income	3,000	5,000	(7,000)	20,000
Purchases, sales, issuances and settlements:
Purchases	0	0	0	0
Transfer in and/or out of Level 3	0	0	0	(3,736,000)
Ending Balance	3,042,000	3,047,000	3,042,000	3,047,000
Change in unrealized gains relating to assets still held at the reporting date	3,000	5,000	(7,000)	20,000
State tax credits held for sale
Level 3 Financial Instruments Measured at Fair Value
Beginning balance	19,822,000	24,836,000	23,020,000	26,350,000
Total gains (losses):
Included in earnings	317,000	264,000	422,000	994,000
Purchases, sales, issuances and settlements:
Sales	0	(31,000)	(3,303,000)	(2,275,000)
Ending Balance	20,139,000	25,069,000	20,139,000	25,069,000
Change in unrealized gains relating to assets still held at the reporting date	$ 317,000	$ 257,000	$ (456,000)	$ 439,000

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Investments - Schedule of Available-for-sale Securities Reconciliation (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Available for sale securities:
Amortized Cost	$ 456,289,000	$ 627,462,000
Gross Unrealized Gains	4,805,000	13,492,000
Gross Unrealized Losses	(8,048,000)	(742,000)
Fair Value	453,046,000	640,212,000
Percentage of shareholders' equity held by one issuer, maximum	10.00%	10.00%
Available-for-sale securities pledged as collateral, fair value	227,500,000	359,300,000
Mortgage-backed securities, weighted average life	5 years
Obligations of U.S. Government sponsored enterprises
Available for sale securities:
Amortized Cost	93,680,000	149,039,000
Gross Unrealized Gains	599,000	3,329,000
Gross Unrealized Losses	(305,000)	0
Fair Value	93,974,000	152,368,000
Obligations of states and political subdivisions
Available for sale securities:
Amortized Cost	51,702,000	51,202,000
Gross Unrealized Gains	1,079,000	2,279,000
Gross Unrealized Losses	(1,588,000)	(478,000)
Fair Value	51,193,000	53,003,000
Residential mortgage-backed securities
Available for sale securities:
Amortized Cost	310,907,000	427,221,000
Gross Unrealized Gains	3,127,000	7,884,000
Gross Unrealized Losses	(6,155,000)	(264,000)
Fair Value	$ 307,879,000	$ 434,841,000

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Portfolio Loans Covered by Loss Share (Covered loans) - Summary of Aging of the Recorded Investment in Past Due Covered Loans by Portfolio Class and Category (Details) (Covered Loans, USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	$ 7,291	$ 2,783
90 or More Days Past Due	21,132	26,175
Total Past Due	28,423	28,958
Current	130,389	172,160
Total	158,812	201,118
Commercial & Industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	1,642	319
90 or More Days Past Due	1,166	3,925
Total Past Due	2,808	4,244
Current	6,287	17,790
Total	9,095	22,034
Consumer & Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	1
90 or More Days Past Due	0	2
Total Past Due	0	3
Current	1,845	1,271
Total	1,845	1,274
Commercial Real Estate Owner Occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	3,323	887
90 or More Days Past Due	5,024	5,144
Total Past Due	8,347	6,031
Current	34,905	41,109
Total	43,252	47,140
Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	1,653	308
90 or More Days Past Due	4,465	665
Total Past Due	6,118	973
Current	45,724	56,629
Total	51,842	57,602
Construction and Land Development
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	0	36
90 or More Days Past Due	3,886	13,532
Total Past Due	3,886	13,568
Current	11,446	16,969
Total	15,332	30,537
Residential Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-89 Days Past Due	673	1,232
90 or More Days Past Due	6,591	2,907
Total Past Due	7,264	4,139
Current	30,182	38,392
Total	$ 37,446	$ 42,531

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Commitments

The contractual amounts of off-balance-sheet financial instruments as of September 30, 2013, and December 31, 2012, are as follows:

(in thousands)	September 30, 2013		December 31, 2012
Commitments to extend credit	$	769,704	$	722,325
Standby letters of credit	43,452		42,561

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$ 598	$ 1,828	$ (5,716)	$ 3,926
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax	$ 238	$ 0	$ 505	$ 416

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Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash dividends paid on common shares, per share	$ 0.1575	$ 0.1575
Issuance under equity compensation plans, shares	87,743	189,848
Trust preferred securities conversion	1,176,470	0

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Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Basic earnings per common share data is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Common shares outstanding include common stock and restricted stock awards where recipients have satisfied the vesting terms. Diluted earnings per common share gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and the if-converted method for convertible trust preferred securities.

The following table presents a summary of per common share data and amounts for the periods indicated.

	Three months ended September 30,					Nine months ended September 30,
(in thousands, except per share data)	2013		2012			2013		2012
Net income as reported	$	8,410	$	7,930		$	29,483	$	22,881
Preferred stock dividend	—		(436		)	—		(1,312		)
Accretion of preferred stock discount	—		(212		)	—		(621		)
Net income available to common shareholders	$	8,410	$	7,282		$	29,483	$	20,948
Impact of assumed conversions
Interest on 9% convertible trust preferred securities, net of income tax	217		371			926		1,113
Net income available to common shareholders and assumed conversions	$	8,627	$	7,653		$	30,409	$	22,061
Weighted average common shares outstanding	18,779		17,876			18,288		17,829
Incremental shares from assumed conversions of convertible trust preferred securities	851		1,439			1,241		1,439
Additional dilutive common stock equivalents	200		100			153		34
Weighted average diluted common shares outstanding	19,830		19,415			19,682		19,302
Basic earnings per common share:	$	0.45	$	0.41		$	1.61	$	1.17
Diluted earnings per common share:	$	0.44	$	0.39		$	1.55	$	1.14

For the three months ended September 30, 2013 and 2012, the amount of common stock equivalents that were excluded from the earnings per share calculations because their effect was anti-dilutive was 474,267, and 1.0 million common stock equivalents (including 324,074 common stock warrants), respectively. For the nine months ended September 30, 2013 and 2012, the amount of common stock equivalents that were excluded from the earnings per share calculations because their effect was anti-dilutive was 488,318 (including 9,497 average common stock warrants), and 1.0 million common stock equivalents (including 324,074 common stock warrants), respectively.

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net income	$ 29,483	$ 22,881
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	1,936	1,944
Provision for loan losses	(305)	16,221
Deferred income taxes	180	(1,982)
Net amortization of debt securities	4,579	5,839
Amortization of intangible assets	1,540	1,440
Gain on sale of investment securities	(1,295)	(1,156)
Mortgage loans originated for sale	(64,463)	(71,085)
Proceeds from mortgage loans sold	70,884	68,987
Gain on sale of other real estate	(1,562)	(3,152)
Gain on state tax credits, net	(1,214)	(1,180)
Share-based compensation	3,136	1,791
Valuation adjustment on other real estate	962	2,201
Net accretion of loan discount and indemnification asset	(13,853)	(18,754)
Changes in:
Accrued interest receivable	600	(1,288)
Accrued interest payable	(397)	(385)
Prepaid FDIC insurance	2,607	1,837
Other assets	(21,322)	1,212
Other liabilities	516	12,567
Net cash provided by operating activities	12,012	37,938
Cash flows from investing activities:
Net increase in loans	36,955	(10,478)
Net cash proceeds received from FDIC loss share receivable	9,654	85,173
Proceeds from the sale of debt and equity securities, available for sale	159,604	110,876
Proceeds from the maturity of debt and equity securities, available for sale	69,017	91,498
Proceeds from the redemption of other investments	26,695	6,296
Proceeds from the sale of state tax credits held for sale	8,126	4,408
Proceeds from the sale of other real estate	15,303	44,273
Payments for the purchase/origination of:
Available for sale debt and equity securities	(60,732)	(214,935)
Other investments	(28,143)	(8,138)
Payments to Acquire Life Insurance Policies	(20,000)	0
State tax credits held for sale	(1,365)	(18,577)
Fixed assets	(1,122)	(4,433)
Net cash provided by investing activities	213,992	85,963
Cash flows from financing activities:
Net increase in noninterest-bearing deposit accounts	(67,242)	35,591
Net decrease in interest-bearing deposit accounts	(143,691)	(276,011)
Proceeds from Federal Home Loan Bank advances	743,000	157,500
Repayments of Federal Home Loan Bank advances	(703,000)	(133,500)
Repayments of Long-term Debt	(900)	0
Repayments of Subordinated Debt	(2,000)	0
Net decrease in other borrowings	(66,005)	(7,440)
Cash dividends paid on common stock	(2,924)	(2,813)
Excess tax benefit of share-based compensation	83	86
Payments for Repurchase of Preferred Stock and Preference Stock	(1,006)	0
Cash dividends paid on preferred stock	0	(1,312)
Proceeds from the issuance of equity instruments	2,551	1,530
Net cash used in financing activities	(241,134)	(226,369)
Net decrease in cash and cash equivalents	(15,130)	(102,468)
Cash and cash equivalents, beginning of period	116,370	188,143
Cash and cash equivalents, end of period	101,240	85,675
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	14,470	17,487
Cash paid during the period for income taxes	24,348	10,953
Noncash transactions:
Transfer to other real estate owned in settlement of loans	21,116	19,799
Sales of other real estate financed	5,564	5,264
Stock Issued During Period, Value, Conversion of Convertible Securities	$ 20,443	$ 0

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Portfolio Loans Not Covered by Loss Share ("Non-covered") - Summary of Recorded Investment by Risk Category of Non-covered Loans by Portfolio Class and Category (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Credit Quality, Time Period Expected to Return to Perform	12 months
Total	$ 2,110,825	$ 2,106,039
Non-Covered Loans
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	2,109,943	2,106,028
Total	2,110,825	2,106,039
Non-Covered Loans | Pass (1-6)
Financing Receivable, Recorded Investment [Line Items]
Total	1,900,106	1,865,490
Non-Covered Loans | Watch (7)
Financing Receivable, Recorded Investment [Line Items]
Total	124,508	136,036
Non-Covered Loans | Substandard (8)
Financing Receivable, Recorded Investment [Line Items]
Total	85,363	101,808
Non-Covered Loans | Doubtful (9)
Financing Receivable, Recorded Investment [Line Items]
Total	848	2,705
Non-Covered Loans | Commercial & Industrial
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	1,007,398	962,884
Non-Covered Loans | Commercial & Industrial | Pass (1-6)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	948,844	912,766
Non-Covered Loans | Commercial & Industrial | Watch (7)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	35,321	29,524
Non-Covered Loans | Commercial & Industrial | Substandard (8)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	22,858	18,546
Non-Covered Loans | Commercial & Industrial | Doubtful (9)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	375	2,048
Non-Covered Loans | Commercial Real Estate Owner Occupied
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	350,653	333,242
Non-Covered Loans | Commercial Real Estate Owner Occupied | Pass (1-6)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	315,715	290,850
Non-Covered Loans | Commercial Real Estate Owner Occupied | Watch (7)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	20,862	26,336
Non-Covered Loans | Commercial Real Estate Owner Occupied | Substandard (8)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	14,076	15,898
Non-Covered Loans | Commercial Real Estate Owner Occupied | Doubtful (9)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	0	158
Non-Covered Loans | Commercial Real Estate Investor Owned
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	451,102	486,467
Non-Covered Loans | Commercial Real Estate Investor Owned | Pass (1-6)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	381,553	389,886
Non-Covered Loans | Commercial Real Estate Investor Owned | Watch (7)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	43,654	64,707
Non-Covered Loans | Commercial Real Estate Investor Owned | Substandard (8)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	25,895	31,874
Non-Covered Loans | Commercial Real Estate Investor Owned | Doubtful (9)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	0	0
Non-Covered Loans | Construction and Land Development
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	114,608	160,911
Non-Covered Loans | Construction and Land Development | Pass (1-6)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	81,799	124,857
Non-Covered Loans | Construction and Land Development | Watch (7)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	17,385	9,543
Non-Covered Loans | Construction and Land Development | Substandard (8)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	14,951	26,012
Non-Covered Loans | Construction and Land Development | Doubtful (9)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	473	499
Non-Covered Loans | Residential Real Estate
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	150,320	145,558
Non-Covered Loans | Residential Real Estate | Pass (1-6)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	135,455	130,159
Non-Covered Loans | Residential Real Estate | Watch (7)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	7,282	5,921
Non-Covered Loans | Residential Real Estate | Substandard (8)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	7,583	9,478
Non-Covered Loans | Residential Real Estate | Doubtful (9)
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	0	0
Non-Covered Loans | Consumer & Other
Financing Receivable, Recorded Investment [Line Items]
Portfolio Loans	35,862	16,966
Total	36,744	16,977
Non-Covered Loans | Consumer & Other | Pass (1-6)
Financing Receivable, Recorded Investment [Line Items]
Total	36,740	16,972
Non-Covered Loans | Consumer & Other | Watch (7)
Financing Receivable, Recorded Investment [Line Items]
Total	4	5
Non-Covered Loans | Consumer & Other | Substandard (8)
Financing Receivable, Recorded Investment [Line Items]
Total	0	0
Non-Covered Loans | Consumer & Other | Doubtful (9)
Financing Receivable, Recorded Investment [Line Items]
Total	$ 0	$ 0

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Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Following are the financial results for the Company’s operating segments.

(in thousands)	Banking			Wealth Management			Corporate and Intercompany			Total
	Three months ended September 30,
Income Statement Information	2013
Net interest income (expense)	$	33,476		$	(166	)	$	(736	)	$	32,574
Provision for loan losses	2,159			—			—			2,159
Noninterest income	1,684			2,006			26			3,716
Noninterest expense	17,898			1,809			1,533			21,240
Income (loss) before income tax expense (benefit)	15,103			31			(2,243		)	12,891
	2012
Net interest income (expense)	$	38,627		$	(252	)	$	(891	)	$	37,484
Provision for loan losses	11,937			—			—			11,937
Noninterest income	5,418			2,088			326			7,832
Noninterest expense	18,063			1,968			1,251			21,282
Income (loss) before income tax expense (benefit)	14,045			(132		)	(1,816		)	12,097
	Nine months ended September 30,
Income Statement Information	2013
Net interest income (expense)	$	105,738		$	(292	)	$	(2,665	)	$	102,781
Provision for loan losses	(305		)	—			—			(305		)
Noninterest income	(1,758		)	6,611			100			4,953
Noninterest expense	53,137			5,644			4,355			63,136
Income (loss) before income tax expense (benefit)	51,148			675			(6,920		)	44,903
	2012
Net interest income (expense)	$	105,646		$	(566	)	$	(2,834	)	$	102,246
Provision for loan losses	16,221			—			—			16,221
Noninterest income	5,571			6,718			371			12,660
Noninterest expense	54,424			5,761			3,875			64,060
Income (loss) before income tax expense (benefit)	40,572			391			(6,338		)	34,625
Balance Sheet Information	September 30, 2013						December 31, 2012
Total assets:
Banking	$	2,994,008					$	3,195,096
Wealth Management	96,943						112,020
Corporate and Intercompany	17,111						18,670
Total	3,108,062						3,325,786

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Investments - Investments Classified by Contractual Maturity Date (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Amortized Cost
Due in one year or less	$ 885
Due after one year through five years	107,062
Due after five years through ten years	23,333
Due after ten years	14,102
Mortgage-backed securities	310,907
Total	456,289	627,462
Estimated Fair Value
Due in one year or less	892
Due after one year through five years	107,703
Due after five years through ten years	23,516
Due after ten years	13,056
Mortgage-backed securities	307,879
Total	$ 453,046	$ 640,212

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Portfolio Loans Not Covered by Loss Share ("Non-covered") - Summary of Recorded Investment in Non-covered Loans by Portfolio Class and Category Based on Impairment Method (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Loans - Ending Balance:
Total	$ 2,110,825			$ 2,106,039
Non-Covered Loans
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	4,306			8,176
Collectively evaluated for impairment	22,293			26,154
Total	26,599	27,619	32,452	34,330
Loans - Ending Balance:
Individually evaluated for Impairment	24,169			38,727
Collectively evaluated for impairment	2,086,656			2,067,312
Total	2,109,943			2,106,028
Total	2,110,825			2,106,039
Non-Covered Loans | Commercial & Industrial
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	2,610			3,446
Collectively evaluated for impairment	6,270			6,618
Total	8,880	9,674	10,276	10,064
Loans - Ending Balance:
Individually evaluated for Impairment	5,974			8,934
Collectively evaluated for impairment	1,001,424			953,950
Total	1,007,398			962,884
Non-Covered Loans | Commercial Real Estate Owner Occupied
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	0			339
Collectively evaluated for impairment	3,635			3,853
Total	3,635	3,910	4,064	4,192
Loans - Ending Balance:
Individually evaluated for Impairment	191			5,772
Collectively evaluated for impairment	350,462			327,470
Total	350,653			333,242
Non-Covered Loans | Commercial Real Estate Investor Owned
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	973			3,400
Collectively evaluated for impairment	4,822			7,003
Total	5,795	6,215	8,640	10,403
Loans - Ending Balance:
Individually evaluated for Impairment	10,830			16,762
Collectively evaluated for impairment	440,272			469,705
Total	451,102			486,467
Non-Covered Loans | Construction and Land Development
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	712			732
Collectively evaluated for impairment	2,112			4,507
Total	2,824	3,815	4,936	5,239
Loans - Ending Balance:
Individually evaluated for Impairment	6,499			4,695
Collectively evaluated for impairment	108,109			156,216
Total	114,608			160,911
Non-Covered Loans | Residential Real Estate
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	11			259
Collectively evaluated for impairment	1,652			1,767
Total	1,663	1,846	2,111	2,026
Loans - Ending Balance:
Individually evaluated for Impairment	675			2,564
Collectively evaluated for impairment	149,645			142,994
Total	150,320			145,558
Non-Covered Loans | Consumer & Other
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	0			0
Collectively evaluated for impairment	63			31
Total	63	44	43	31
Loans - Ending Balance:
Individually evaluated for Impairment	0			0
Collectively evaluated for impairment	36,744			16,977
Total	35,862			16,966
Total	36,744			16,977
Non-Covered Loans | Qualitative Adjustment
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	0			0
Collectively evaluated for impairment	3,739			2,375
Total	3,739	2,115	2,382	2,375
Loans - Ending Balance:
Individually evaluated for Impairment	0			0
Collectively evaluated for impairment	0			0
Total	$ 0			$ 0

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Fair Value Measurements - Fair Value Measurements, Nonrecurring (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Change in Fair Value, Gains (Losses) in Period	$ (2,721)	$ (9,007)
Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Change in Fair Value, Gains (Losses) in Period	(2,514)	(8,046)
Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure, Change in Fair Value, Gains (Losses) in Period	(207)	(961)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Significant Other Observable Inputs (Level 2) | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Significant Other Observable Inputs (Level 2) | Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	10,700	10,700
Significant Unobservable Inputs (Level 3) | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	3,172	3,172
Significant Unobservable Inputs (Level 3) | Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate	7,528	7,528
Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	10,700	10,700
Total Fair Value | Impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	3,172	3,172
Total Fair Value | Other real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate	$ 7,528	$ 7,528

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Portfolio Loans Covered by Loss Share (Covered loans) - Summary of Activity in the FDIC Loss Share Receivable (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
PORTFOLIO LOANS COVERED BY LOSS SHARE [Abstract]
FDIC loss share receivable	$ 40,054,000	$ 40,054,000		$ 61,475,000
Net cash proceeds received from FDIC loss share receivable		9,654,000	85,173,000
FDIC Indemnification Asset, Period Increase (Decrease)		1,880,000
FDIC Indemnification Asset, Accretion of Discount		(9,574,000)
Loan impairment recapture		2,205,000
Reductions for payments on Covered assets in excess of expected cash flows		(6,278,000)
Amount of Estimated Clawback Liability	1,400,000	1,400,000
Adjustment in FDIC clawback liability	$ 62,000

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Assets
Collateral pledged	$ 730	$ 3,270
Allowance for loan losses on Portfolio loans, covered under FDIC loss share	13,632	11,547
State tax credits, held for sale, carried at fair value	$ 20,139	$ 23,020
Shareholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	19,352,365	18,088,152
Treasury stock, shares	76,000	76,000

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Portfolio Loans Covered by Loss Share (Covered loans)

9 Months Ended

Sep. 30, 2013

PORTFOLIO LOANS COVERED BY LOSS SHARE [Abstract]

Portfolio Loans Covered by Loss Share (Covered loans)

PORTFOLIO LOANS COVERED BY LOSS SHARE ("Covered loans")

Below is a summary of Covered loans by category at September 30, 2013, and December 31, 2012:

	September 30, 2013			December 31, 2012
(in thousands)	Weighted- Average Risk Rating	Recorded Investment Covered Loans		Weighted- Average Risk Rating	Recorded Investment Covered Loans
Real Estate Loans:
Construction and Land Development	6.96		$15,332	7.06		$30,537
Commercial real estate - Investor Owned	6.54	51,842		6.08	57,602
Commercial real estate - Owner Occupied	6.87	43,252		6.65	47,140
Residential real estate	5.95	37,446		5.68	42,531
Total real estate loans			$147,872			$177,810
Commercial and industrial	6.99	9,095		6.57	22,034
Consumer & other	6.43	1,845		4.19	1,274
Portfolio Loans			$158,812			$201,118

The aging of the recorded investment in past due Covered loans by portfolio class and category at September 30, 2013, and December 31, 2012, is shown below.

	September 30, 2013
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	1,642	$	1,166	$	2,808	$	6,287	$	9,095
Real Estate:
Commercial - Owner Occupied	3,323		5,024		8,347		34,905		43,252
Commercial - Investor Owned	1,653		4,465		6,118		45,724		51,842
Construction and Land Development	—		3,886		3,886		11,446		15,332
Residential	673		6,591		7,264		30,182		37,446
Consumer & Other	—		—		—		1,845		1,845
Total	$	7,291	$	21,132	$	28,423	$	130,389	$	158,812

	December 31, 2012
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	319	$	3,925	$	4,244	$	17,790	$	22,034
Real Estate:
Commercial - Owner Occupied	887		5,144		6,031		41,109		47,140
Commercial - Investor Owned	308		665		973		56,629		57,602
Construction and Land Development	36		13,532		13,568		16,969		30,537
Residential	1,232		2,907		4,139		38,392		42,531
Consumer & Other	1		2		3		1,271		1,274
Total	$	2,783	$	26,175	$	28,958	$	172,160	$	201,118

The following table is a rollforward of Covered loans, net of the allowance for loan losses, for the nine months ended September 30, 2013 and 2012.

(In thousands)	Contractual Cashflows			Less: Non-accretable Difference			Less: Accretable Yield			Carrying Amount
Balance January 1, 2013	$	386,966		$	118,627		$	78,768		$	189,571
Principal reductions and interest payments	(37,421		)	—			—			(37,421		)
Accretion of loan discount	—			—			(19,987		)	19,987
Changes in contractual and expected cash flows due to remeasurement	9,216			(10,858		)	14,233			5,841
Reductions due to disposals	(68,953		)	(23,867		)	(12,288		)	(32,798		)
Balance September 30, 2013	$	289,808		$	83,902		$	60,726		$	145,180
Balance January 1, 2012	$	618,791		$	256,481		$	63,335		$	298,975
Principal reductions and interest payments	(68,783		)	—			—			(68,783		)
Accretion of loan discount	—			—			(22,231		)	22,231
Changes in contractual and expected cash flows due to remeasurement	1,671			(67,401		)	67,178			1,894
Reductions due to disposals	(107,669		)	(50,846		)	(12,837		)	(43,986		)
Balance September 30, 2012	$	444,010		$	138,234		$	95,445		$	210,331

The accretable yield is accreted into interest income over the estimated life of the acquired loans using the effective

yield method.

A summary of activity in the FDIC loss share receivable for the nine months ended September 30, 2013 is as follows:

(In thousands)	September 30, 2013
Balance at beginning of period	$	61,475
Adjustments not reflected in income:
Cash received from the FDIC for covered assets	(9,654		)
FDIC reimbursable losses, net	1,880
Adjustments reflected in income:
Amortization, net	(9,574		)
Loan impairment (recapture)	2,205
Reductions for payments on covered assets in excess of expected cash flows	(6,278		)
Balance at end of period	$	40,054

Due to continued favorable projections in the expected cash flows of its Covered loans, the Company continues to anticipate that it will be required to pay the FDIC at the end of one of the loss share agreements. Accordingly, a liability of $1.4 million has been recorded at September 30, 2013. As part of the remeasurement process, the Company recorded a $62,000 adjustment to increase the liability through Other noninterest expense during the quarter ended September 30, 2013. The liability will continue to be adjusted as part of the quarterly remeasurement process through the end of the loss share agreement.

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Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net income	$ 8,410	$ 7,930	$ 29,483	$ 22,881
Other comprehensive income, net of tax:
Unrealized gain/(loss) on investment securities arising during the period, net of income tax expense/(benefit) for three months of $598 and $1,828, and for nine months of ($5,716) and $3,926, respectively	939	3,248	(8,981)	6,526
Less reclassification adjustment for realized gain on sale of securities included in net income, net of income tax expense for three months of $238 and $0, and for nine months of $505 and $416, respectively	(373)	0	(790)	(740)
Total other comprehensive income (loss)	566	3,248	(9,771)	5,786
Total comprehensive income	$ 8,976	$ 11,178	$ 19,712	$ 28,667

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Assets
Cash and due from banks	$ 35,238	$ 21,906
Federal funds sold	111	51
Interest-bearing deposits (including $730 and $3,270 pledged as collateral)	65,891	94,413
Total cash and cash equivalents	101,240	116,370
Interest-bearing deposits greater than 90 days	5,300	1,000
Securities available for sale	453,046	640,212
Mortgage loans held for sale	12,967	11,792
Portfolio loans not covered under FDIC loss share	2,110,825	2,106,039
Less: Allowance for loan losses	26,599	34,330
Portfolio loans not covered under FDIC loss share, net	2,084,226	2,071,709
Portfolio loans covered under FDIC loss share, net of the allowance for loan losses ($13,632 and $11,547, respectively)	145,180	189,571
Portfolio loans, net	2,229,406	2,261,280
Other real estate not covered under FDIC loss share	10,278	9,327
Other real estate covered under FDIC loss share	17,847	17,173
Other investments, at cost	15,485	14,294
Fixed assets, net	19,048	21,121
Accrued interest receivable	7,897	8,497
State tax credits, held for sale, including $20,139 and $23,020 carried at fair value, respectively	55,810	61,284
FDIC loss share receivable	40,054	61,475
Goodwill	30,334	30,334
Intangibles, net	6,136	7,406
Other assets	103,214	64,221
Total assets	3,108,062	3,325,786
Liabilities and Shareholders' Equity
Demand deposits	619,562	686,805
Interest-bearing transaction accounts	213,708	272,753
Money market accounts	903,561	1,036,125
Savings	88,443	83,458
Certificates of deposit:
$100 and over	462,971	396,896
Other	159,672	182,814
Total deposits	2,447,917	2,658,851
Subordinated debentures	63,081	85,081
Federal Home Loan Bank advances	120,000	80,000
Other borrowings	167,365	233,370
Notes Payable to Bank	10,800	11,700
Accrued interest payable	885	1,282
Other liabilities	20,274	19,757
Total liabilities	2,830,322	3,090,041
Shareholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 0 shares issued and outstanding	0	0
Common stock, $0.01 par value; 30,000,000 shares authorized; 19,352,365 and 18,088,152 shares issued, respectively	194	181
Treasury stock, at cost; 76,000 shares	(1,743)	(1,743)
Additional paid in capital	198,493	173,299
Retained earnings	82,777	56,218
Accumulated other comprehensive income	(1,981)	7,790
Total shareholders' equity	277,740	235,745
Total liabilities and shareholders' equity	$ 3,108,062	$ 3,325,786

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Fair Value Measurements - Summary of the Carrying Amounts and Fair Values of the Company’s Financial Instruments on the Consolidated Balance Sheets (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Balance sheet assets
Securities available for sale	$ 453,046	$ 640,212
State tax credits held for sale	20,139	23,020
Carrying Amount
Balance sheet assets
Cash and due from banks	35,238	21,906
Federal funds sold	111	51
Interest-bearing deposits	71,191	95,413
Securities available for sale	453,046	640,212
Other Investments, at cost	15,485	14,294
Loans held for sale	12,967	11,792
Derivative financial instruments	1,128	1,754
Portfolio loans, net	2,229,406	2,261,280
State tax credits held for sale	55,810	61,284
Accrued interest receivable	7,897	8,497
Balance sheet liabilities
Deposits	2,447,917	2,658,851
Subordinated debentures	63,081	85,081
Federal Home Loan Bank advances	120,000	80,000
Other borrowings	178,165	245,070
Derivative financial instruments	1,114	1,979
Accrued interest payable	885	1,282
Estimated fair value
Balance sheet assets
Cash and due from banks	35,238	21,906
Federal funds sold	111	51
Interest-bearing deposits	71,191	95,413
Securities available for sale	453,046	640,212
Other Investments, at cost	15,485	14,294
Loans held for sale	12,967	11,792
Derivative financial instruments	1,128	1,754
Portfolio loans, net	2,229,411	2,267,038
State tax credits held for sale	60,937	66,822
Accrued interest receivable	7,897	8,497
Balance sheet liabilities
Deposits	2,453,970	2,669,113
Subordinated debentures	40,474	65,840
Federal Home Loan Bank advances	126,234	89,301
Other borrowings	178,228	245,224
Derivative financial instruments	1,114	1,979
Accrued interest payable	$ 885	$ 1,282

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Branch Sale (Tables)

9 Months Ended

Sep. 30, 2013

Branch Sale [Abstract]

Disclosure of Long Lived Assets Held-for-sale

The following table summarizes the primary balance sheet amounts relative to the branches to be sold:

(in thousands)
Assets
Cash and cash equivalents	$	805
Loans	7,696
Other assets	1,206
Liabilities
Deposits	$	81,298

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Portfolio Loans Not Covered by Loss Share ("Non-covered") (Tables) (Non-Covered Loans)

9 Months Ended

Sep. 30, 2013

Non-Covered Loans

Non-covered Loans [Line Items]

Summary of Non-covered Loans by Category

Below is a summary of Non-covered loans by category at September 30, 2013, and December 31, 2012:

(in thousands)	September 30, 2013		December 31, 2012
Real Estate Loans:
Construction and Land Development	$	114,608	$	160,911
Commercial real estate - Investor Owned	451,102		486,467
Commercial real estate - Owner Occupied	350,653		333,242
Residential real estate	150,320		145,558
Total real estate loans	$	1,066,683	$	1,126,178
Commercial and industrial	1,007,398		962,884
Consumer & other	35,862		16,966
Portfolio Loans	$	2,109,943	$	2,106,028
Unearned loan costs, net	882		11
Portfolio loans, including unearned loan costs	$	2,110,825	$	2,106,039

Summary of Allowance for Loan Losses for Non-covered Loans by Portfolio Class and Category

A summary of the year-to-date activity in the allowance for loan losses and the recorded investment in Non-covered loans by portfolio class and category based on impairment method through September 30, 2013, and at December 31, 2012, is as follows:

(in thousands)	Commercial & Industrial			Commercial Real Estate Owner Occupied			Commercial Real Estate Investor Owned			Construction and Land Development			Residential Real Estate			Consumer & Other			Qualitative Adjustment			Total
Allowance for Loan Losses:
Balance at December 31, 2012	$	10,064		$	4,192		$	10,403		$	5,239		$	2,026		$	31		$	2,375		$	34,330
Provision charged to expense	120			179			953			(127		)	675			46			7			1,853
Losses charged off	(206		)	(312		)	(3,052		)	(190		)	(986		)	(34		)	—			(4,780		)
Recoveries	298			5			336			14			396			—			—			1,049
Balance at March 31, 2013	$	10,276		$	4,064		$	8,640		$	4,936		$	2,111		$	43		$	2,382		$	32,452
Provision charged to expense	(320		)	(139		)	(2,273		)	(998		)	(299		)	1			(267		)	(4,295		)
Losses charged off	(400		)	(32		)	(176		)	(144		)	—			—			—			(752		)
Recoveries	118			17			24			21			34			—			—			214
Balance at June 30, 2013	$	9,674		$	3,910		$	6,215		$	3,815		$	1,846		$	44		$	2,115		$	27,619
Provision charged to expense	117			(233		)	(276		)	(1,291		)	(612		)	19			1,624			(652		)
Losses charged off	(1,817		)	(56		)	(504		)	(85		)	(52		)	—			—			(2,514		)
Recoveries	906			14			360			385			481			—			—			2,146
Balance at September 30, 2013	$	8,880		$	3,635		$	5,795		$	2,824		$	1,663		$	63		$	3,739		$	26,599

(in thousands)	Commercial & Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Investor Owned		Construction and Land Development		Residential Real Estate		Consumer & Other		Qualitative Adjustment		Total
Balance September 30, 2013
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	$	2,610	$	—	$	973	$	712	$	11	$	—	$	—	$	4,306
Collectively evaluated for impairment	6,270		3,635		4,822		2,112		1,652		63		3,739		22,293
Total	$	8,880	$	3,635	$	5,795	$	2,824	$	1,663	$	63	$	3,739	$	26,599
Loans - Ending Balance:
Individually evaluated for impairment	$	5,974	$	191	$	10,830	$	6,499	$	675	$	—	$	—	$	24,169
Collectively evaluated for impairment	1,001,424		350,462		440,272		108,109		149,645		36,744		—		2,086,656
Total	$	1,007,398	$	350,653	$	451,102	$	114,608	$	150,320	$	36,744	$	—	$	2,110,825
Balance at December 31, 2012
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	$	3,446	$	339	$	3,400	$	732	$	259	$	—	$	—	$	8,176
Collectively evaluated for impairment	6,618		3,853		7,003		4,507		1,767		31		2,375		26,154
Total	$	10,064	$	4,192	$	10,403	$	5,239	$	2,026	$	31	$	2,375	$	34,330
Loans - Ending Balance:
Individually evaluated for impairment	$	8,934	$	5,772	$	16,762	$	4,695	$	2,564	$	—	$	—	$	38,727
Collectively evaluated for impairment	953,950		327,470		469,705		156,216		142,994		16,977		—		2,067,312
Total	$	962,884	$	333,242	$	486,467	$	160,911	$	145,558	$	16,977	$	—	$	2,106,039

Summary of Non-covered Loans Individually Evaluated for Impairment by Category

A summary of Non-covered loans individually evaluated for impairment by category at September 30, 2013, and December 31, 2012, is as follows:

	September 30, 2013
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial & Industrial	$	6,333	$	1,441	$	4,642	$	6,083	$	2,610	$	7,379
Real Estate:
Commercial - Owner Occupied	191		195		—		195		—		2,381
Commercial - Investor Owned	11,969		4,960		6,158		11,118		973		12,346
Construction and Land Development	7,206		4,278		2,389		6,667		712		5,165
Residential	700		460		227		687		11		2,361
Consumer & Other	—		—		—		—		—		—
Total	$	26,399	$	11,334	$	13,416	$	24,750	$	4,306	$	29,632

	December 31, 2012
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial & Industrial	$	9,005	$	96	$	8,838	$	8,934	$	3,446	$	6,379
Real Estate:
Commercial - Owner Occupied	6,726		2,178		3,594		5,772		339		7,985
Commercial - Investor Owned	19,864		185		16,577		16,762		3,400		10,500
Construction and Land Development	6,491		1,560		3,135		4,695		732		10,259
Residential	3,132		1,626		938		2,564		259		4,368
Consumer & Other	—		—		—		—		—		—
Total	$	45,218	$	5,645	$	33,082	$	38,727	$	8,176	$	39,491

The recorded investment in non-accrual, restructured, and 90 days past due and still accruing interest Non-covered loans by category at September 30, 2013, and December 31, 2012, is as follows:

	September 30, 2013
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial & Industrial	$	6,083	$	—	$	—	$	6,083
Real Estate:
Commercial - Investor Owned	11,118		—		—		11,118
Commercial - Owner Occupied	195		—		—		195
Construction and Land Development	6,667		—		—		6,667
Residential	687		—		—		687
Consumer & Other	—		—		—		—
Total	$	24,750	$	—	$	—	$	24,750

	December 31, 2012
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial & Industrial	$	8,929	$	5	$	—	$	8,934
Real Estate:
Commercial - Investor Owned	16,762		—		—		16,762
Commercial - Owner Occupied	5,772		—		—		5,772
Construction and Land Development	3,260		1,435		—		4,695
Residential	2,564		—		—		2,564
Consumer & Other	—		—		—		—
Total	$	37,287	$	1,440	$	—	$	38,727

Summary of Aging of Recorded Investment in Past Due Non-covered Loans by Portfolio Class and Category

The aging of the recorded investment in past due Non-covered loans by portfolio class and category at September 30, 2013, and December 31, 2012, is shown below.

	September 30, 2013
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	445	$	1,337	$	1,782	$	1,005,616	$	1,007,398
Real Estate:
Commercial - Owner Occupied	442		190		632		350,021		350,653
Commercial - Investor Owned	1,025		6,842		7,867		443,235		451,102
Construction and Land Development	—		2,210		2,210		112,398		114,608
Residential	—		320		320		150,000		150,320
Consumer & Other	3		—		3		36,741		36,744
Total	$	1,915	$	10,899	$	12,814	$	2,098,011	$	2,110,825

	December 31, 2012
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	14	$	—	$	14	$	962,870	$	962,884
Real Estate:
Commercial - Owner Occupied	1,352		2,081		3,433		329,809		333,242
Commercial - Investor Owned	—		4,045		4,045		482,422		486,467
Construction and Land Development	1,201		1,559		2,760		158,151		160,911
Residential	616		593		1,209		144,349		145,558
Consumer & Other	34		—		34		16,943		16,977
Total	$	3,217	$	8,278	$	11,495	$	2,094,544	$	2,106,039

Summary of Recorded Investment by Risk Category of Non-covered Loans by Portfolio Class and Category

The recorded investment by risk category of the Non-covered loans by portfolio class and category at September 30, 2013, which is based upon the most recent analysis performed, and December 31, 2012 is as follows:

	September 30, 2013
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial & Industrial	$	948,844	$	35,321	$	22,858	$	375	$	1,007,398
Real Estate:
Commercial - Owner Occupied	315,715		20,862		14,076		—		350,653
Commercial - Investor Owned	381,553		43,654		25,895		—		451,102
Construction and Land Development	81,799		17,385		14,951		473		114,608
Residential	135,455		7,282		7,583		—		150,320
Consumer & Other	36,740		4		—		—		36,744
Total	$	1,900,106	$	124,508	$	85,363	$	848	$	2,110,825

	December 31, 2012
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial & Industrial	$	912,766	$	29,524	$	18,546	$	2,048	$	962,884
Real Estate:
Commercial - Owner Occupied	290,850		26,336		15,898		158		333,242
Commercial - Investor Owned	389,886		64,707		31,874		—		486,467
Construction and Land Development	124,857		9,543		26,012		499		160,911
Residential	130,159		5,921		9,478		—		145,558
Consumer & Other	16,972		5		—		—		16,977
Total	$	1,865,490	$	136,036	$	101,808	$	2,705	$	2,106,039

XML

Portfolio Loans Covered by Loss Share (Covered loans) - Rollforward of Covered Loans, Net of the Allowance for Loan Losses (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	$ 189,571	$ 298,975
Principal reductions and interest payments	(37,421)	(68,783)
Accretion of loan discount	19,987	22,231
Reclassifications from nonaccretable difference	5,841	1,894
Reductions due to disposals	(32,798)	(43,986)
Balance at end of period	145,180	210,331
Accretable Yield
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	78,768	63,335
Principal reductions and interest payments	0	0
Accretion of loan discount	(19,987)	(22,231)
Reclassifications from nonaccretable difference	14,233	67,178
Reductions due to disposals	(12,288)	(12,837)
Balance at end of period	60,726	95,445
Contractual Rights
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	386,966	618,791
Principal reductions and interest payments	(37,421)	(68,783)
Accretion of loan discount	0	0
Reclassifications from nonaccretable difference	9,216	1,671
Reductions due to disposals	(68,953)	(107,669)
Balance at end of period	289,808	444,010
Non-accretable difference
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	118,627	256,481
Principal reductions and interest payments	0	0
Accretion of loan discount	0	0
Reclassifications from nonaccretable difference	(10,858)	(67,401)
Reductions due to disposals	(23,867)	(50,846)
Balance at end of period	$ 83,902	$ 138,234

XML

Branch Sale (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013
Branch Sale [Abstract]
Number of branches to be sold	2
Long Lived Assets Held-for-sale [Line Items]
Assets Held-for-sale, Current	$ 805
Liabilities of Assets Held-for-sale	81,298
Loans Receivable
Long Lived Assets Held-for-sale [Line Items]
Assets Held-for-sale, Long Lived	7,696
Other Assets
Long Lived Assets Held-for-sale [Line Items]
Assets Held-for-sale, Long Lived	$ 1,206

XML

Portfolio Loans Not Covered by Loss Share ("Non-covered") - Summary of Recorded Investment in Impaired Non-covered Loans by Category (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013 Non-Covered Loans	Dec. 31, 2012 Non-Covered Loans	Sep. 30, 2013 Non-Covered Loans Commercial & Industrial	Dec. 31, 2012 Non-Covered Loans Commercial & Industrial	Sep. 30, 2013 Non-Covered Loans Commercial Real Estate Investor Owned	Dec. 31, 2012 Non-Covered Loans Commercial Real Estate Investor Owned	Sep. 30, 2013 Non-Covered Loans Commercial Real Estate Owner Occupied	Dec. 31, 2012 Non-Covered Loans Commercial Real Estate Owner Occupied	Sep. 30, 2013 Non-Covered Loans Construction and Land Development	Dec. 31, 2012 Non-Covered Loans Construction and Land Development	Sep. 30, 2013 Non-Covered Loans Residential Real Estate	Dec. 31, 2012 Non-Covered Loans Residential Real Estate	Sep. 30, 2013 Non-Covered Loans Consumer & Other	Dec. 31, 2012 Non-Covered Loans Consumer & Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual		$ 24,750	$ 37,287	$ 6,083	$ 8,929	$ 11,118	$ 16,762	$ 195	$ 5,772	$ 6,667	$ 3,260	$ 687	$ 2,564	$ 0	$ 0
Restructured		0	1,440	0	5	0	0	0	0	0	1,435	0	0	0	0
Loans over 90 days past due and still accruing interest		0	0	0	0	0	0	0	0	0	0	0	0	0	0
Total Recorded Investment		$ 24,750	$ 38,727	$ 6,083	$ 8,934	$ 11,118	$ 16,762	$ 195	$ 5,772	$ 6,667	$ 4,695	$ 687	$ 2,564	$ 0	$ 0
Table Text Block Supplement [Abstract]
Number of non-covered loans restructured and defaulted	no

XML

Portfolio Loans Not Covered by Loss Share ("Non-covered") - Summary of Non-covered Loans by Category (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 2,110,825	$ 2,106,039
Non-Covered Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio Loans	2,109,943	2,106,028
Unearned loan costs, net	882	11
Total	2,110,825	2,106,039
Non-Covered Loans | Construction and Land Development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio Loans	114,608	160,911
Non-Covered Loans | Commercial Real Estate Investor Owned
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio Loans	451,102	486,467
Non-Covered Loans | Commercial Real Estate Owner Occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio Loans	350,653	333,242
Non-Covered Loans | Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio Loans	150,320	145,558
Non-Covered Loans | Real Estate Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio Loans	1,066,683	1,126,178
Non-Covered Loans | Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio Loans	1,007,398	962,884
Non-Covered Loans | Consumer & Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Portfolio Loans	35,862	16,966
Total	$ 36,744	$ 16,977

XML

Portfolio Loans Not Covered by Loss Share ("Non-covered") - Summary of Allowance for Loan Losses for Non-covered Loans by Portfolio Class and Category (Details) (Non-Covered Loans, USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013
Allowance for Loan Losses [Roll Forward]
Balance	$ 27,619	$ 32,452	$ 34,330
Provision charged to expense	(652)	(4,295)	1,853
Losses charged off	(2,514)	(752)	(4,780)
Recoveries	2,146	214	1,049
Balance	26,599	27,619	32,452
Commercial & Industrial
Allowance for Loan Losses [Roll Forward]
Balance	9,674	10,276	10,064
Provision charged to expense	117	(320)	120
Losses charged off	(1,817)	(400)	(206)
Recoveries	906	118	298
Balance	8,880	9,674	10,276
Commercial Real Estate Owner Occupied
Allowance for Loan Losses [Roll Forward]
Balance	3,910	4,064	4,192
Provision charged to expense	(233)	(139)	179
Losses charged off	(56)	(32)	(312)
Recoveries	14	17	5
Balance	3,635	3,910	4,064
Commercial Real Estate Investor Owned
Allowance for Loan Losses [Roll Forward]
Balance	6,215	8,640	10,403
Provision charged to expense	(276)	(2,273)	953
Losses charged off	(504)	(176)	(3,052)
Recoveries	360	24	336
Balance	5,795	6,215	8,640
Construction and Land Development
Allowance for Loan Losses [Roll Forward]
Balance	3,815	4,936	5,239
Provision charged to expense	(1,291)	(998)	(127)
Losses charged off	(85)	(144)	(190)
Recoveries	385	21	14
Balance	2,824	3,815	4,936
Residential Real Estate
Allowance for Loan Losses [Roll Forward]
Balance	1,846	2,111	2,026
Provision charged to expense	(612)	(299)	675
Losses charged off	(52)	0	(986)
Recoveries	481	34	396
Balance	1,663	1,846	2,111
Consumer & Other
Allowance for Loan Losses [Roll Forward]
Balance	44	43	31
Provision charged to expense	19	1	46
Losses charged off	0	0	(34)
Recoveries	0	0	0
Balance	63	44	43
Qualitative Adjustment
Allowance for Loan Losses [Roll Forward]
Balance	2,115	2,382	2,375
Provision charged to expense	1,624	(267)	7
Losses charged off	0	0	0
Recoveries	0	0	0
Balance	$ 3,739	$ 2,115	$ 2,382

XML

Portfolio Loans Not Covered by Loss Share ("Non-covered")

9 Months Ended

Sep. 30, 2013

PORTFOLIO LOANS NOT COVERED BY LOSS SHARE [Abstract]

Portfolio Loans Not Covered by Loss Share (Non-covered)

PORTFOLIO LOANS NOT COVERED BY LOSS SHARE ("Non-covered")

Below is a summary of Non-covered loans by category at September 30, 2013, and December 31, 2012:

(in thousands)	September 30, 2013		December 31, 2012
Real Estate Loans:
Construction and Land Development	$	114,608	$	160,911
Commercial real estate - Investor Owned	451,102		486,467
Commercial real estate - Owner Occupied	350,653		333,242
Residential real estate	150,320		145,558
Total real estate loans	$	1,066,683	$	1,126,178
Commercial and industrial	1,007,398		962,884
Consumer & other	35,862		16,966
Portfolio Loans	$	2,109,943	$	2,106,028
Unearned loan costs, net	882		11
Portfolio loans, including unearned loan costs	$	2,110,825	$	2,106,039

The Company grants commercial, residential, and consumer loans primarily in the St. Louis, Kansas City and Phoenix metropolitan areas. The Company has a diversified loan portfolio, with no particular concentration of credit in any one economic sector; however, a substantial portion of the portfolio is concentrated in and secured by real estate. The ability of the Company’s borrowers to honor their contractual obligations is partially dependent upon the local economy and its effect on the real estate market.

A summary of the year-to-date activity in the allowance for loan losses and the recorded investment in Non-covered loans by portfolio class and category based on impairment method through September 30, 2013, and at December 31, 2012, is as follows:

(in thousands)	Commercial & Industrial			Commercial Real Estate Owner Occupied			Commercial Real Estate Investor Owned			Construction and Land Development			Residential Real Estate			Consumer & Other			Qualitative Adjustment			Total
Allowance for Loan Losses:
Balance at December 31, 2012	$	10,064		$	4,192		$	10,403		$	5,239		$	2,026		$	31		$	2,375		$	34,330
Provision charged to expense	120			179			953			(127		)	675			46			7			1,853
Losses charged off	(206		)	(312		)	(3,052		)	(190		)	(986		)	(34		)	—			(4,780		)
Recoveries	298			5			336			14			396			—			—			1,049
Balance at March 31, 2013	$	10,276		$	4,064		$	8,640		$	4,936		$	2,111		$	43		$	2,382		$	32,452
Provision charged to expense	(320		)	(139		)	(2,273		)	(998		)	(299		)	1			(267		)	(4,295		)
Losses charged off	(400		)	(32		)	(176		)	(144		)	—			—			—			(752		)
Recoveries	118			17			24			21			34			—			—			214
Balance at June 30, 2013	$	9,674		$	3,910		$	6,215		$	3,815		$	1,846		$	44		$	2,115		$	27,619
Provision charged to expense	117			(233		)	(276		)	(1,291		)	(612		)	19			1,624			(652		)
Losses charged off	(1,817		)	(56		)	(504		)	(85		)	(52		)	—			—			(2,514		)
Recoveries	906			14			360			385			481			—			—			2,146
Balance at September 30, 2013	$	8,880		$	3,635		$	5,795		$	2,824		$	1,663		$	63		$	3,739		$	26,599

(in thousands)	Commercial & Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Investor Owned		Construction and Land Development		Residential Real Estate		Consumer & Other		Qualitative Adjustment		Total
Balance September 30, 2013
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	$	2,610	$	—	$	973	$	712	$	11	$	—	$	—	$	4,306
Collectively evaluated for impairment	6,270		3,635		4,822		2,112		1,652		63		3,739		22,293
Total	$	8,880	$	3,635	$	5,795	$	2,824	$	1,663	$	63	$	3,739	$	26,599
Loans - Ending Balance:
Individually evaluated for impairment	$	5,974	$	191	$	10,830	$	6,499	$	675	$	—	$	—	$	24,169
Collectively evaluated for impairment	1,001,424		350,462		440,272		108,109		149,645		36,744		—		2,086,656
Total	$	1,007,398	$	350,653	$	451,102	$	114,608	$	150,320	$	36,744	$	—	$	2,110,825
Balance at December 31, 2012
Allowance for Loan Losses - Ending Balance:
Individually evaluated for impairment	$	3,446	$	339	$	3,400	$	732	$	259	$	—	$	—	$	8,176
Collectively evaluated for impairment	6,618		3,853		7,003		4,507		1,767		31		2,375		26,154
Total	$	10,064	$	4,192	$	10,403	$	5,239	$	2,026	$	31	$	2,375	$	34,330
Loans - Ending Balance:
Individually evaluated for impairment	$	8,934	$	5,772	$	16,762	$	4,695	$	2,564	$	—	$	—	$	38,727
Collectively evaluated for impairment	953,950		327,470		469,705		156,216		142,994		16,977		—		2,067,312
Total	$	962,884	$	333,242	$	486,467	$	160,911	$	145,558	$	16,977	$	—	$	2,106,039

A summary of Non-covered loans individually evaluated for impairment by category at September 30, 2013, and December 31, 2012, is as follows:

	September 30, 2013
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial & Industrial	$	6,333	$	1,441	$	4,642	$	6,083	$	2,610	$	7,379
Real Estate:
Commercial - Owner Occupied	191		195		—		195		—		2,381
Commercial - Investor Owned	11,969		4,960		6,158		11,118		973		12,346
Construction and Land Development	7,206		4,278		2,389		6,667		712		5,165
Residential	700		460		227		687		11		2,361
Consumer & Other	—		—		—		—		—		—
Total	$	26,399	$	11,334	$	13,416	$	24,750	$	4,306	$	29,632

	December 31, 2012
(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial & Industrial	$	9,005	$	96	$	8,838	$	8,934	$	3,446	$	6,379
Real Estate:
Commercial - Owner Occupied	6,726		2,178		3,594		5,772		339		7,985
Commercial - Investor Owned	19,864		185		16,577		16,762		3,400		10,500
Construction and Land Development	6,491		1,560		3,135		4,695		732		10,259
Residential	3,132		1,626		938		2,564		259		4,368
Consumer & Other	—		—		—		—		—		—
Total	$	45,218	$	5,645	$	33,082	$	38,727	$	8,176	$	39,491

There were no loans over 90 days past due and still accruing interest at September 30, 2013. If interest on impaired loans would have been accrued based upon the original contractual terms, such income would have been $410,000 and $1.5 million for the three and nine months ended September 30, 2013, respectively. The cash amount collected and recognized as interest income on impaired loans was $4,000 and $28,000 for the three and nine months ended September 30, 2013, respectively. There was no interest income recognized on impaired loans continuing to accrue interest for the three and nine months ended September 30, 2013, respectively. At September 30, 2013, there were $1.7 million of unadvanced commitments on impaired loans. Other liabilities include approximately $241,000 for estimated losses attributable to the unadvanced commitments on impaired loans.

The recorded investment in non-accrual, restructured, and 90 days past due and still accruing interest Non-covered loans by category at September 30, 2013, and December 31, 2012, is as follows:

	September 30, 2013
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial & Industrial	$	6,083	$	—	$	—	$	6,083
Real Estate:
Commercial - Investor Owned	11,118		—		—		11,118
Commercial - Owner Occupied	195		—		—		195
Construction and Land Development	6,667		—		—		6,667
Residential	687		—		—		687
Consumer & Other	—		—		—		—
Total	$	24,750	$	—	$	—	$	24,750

	December 31, 2012
(in thousands)	Non-accrual		Restructured		Loans over 90 days past due and still accruing interest		Total
Commercial & Industrial	$	8,929	$	5	$	—	$	8,934
Real Estate:
Commercial - Investor Owned	16,762		—		—		16,762
Commercial - Owner Occupied	5,772		—		—		5,772
Construction and Land Development	3,260		1,435		—		4,695
Residential	2,564		—		—		2,564
Consumer & Other	—		—		—		—
Total	$	37,287	$	1,440	$	—	$	38,727

There were no Non-covered loans that have been restructured and subsequently defaulted in the nine months ended September 30, 2013.

The aging of the recorded investment in past due Non-covered loans by portfolio class and category at September 30, 2013, and December 31, 2012, is shown below.

	September 30, 2013
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	445	$	1,337	$	1,782	$	1,005,616	$	1,007,398
Real Estate:
Commercial - Owner Occupied	442		190		632		350,021		350,653
Commercial - Investor Owned	1,025		6,842		7,867		443,235		451,102
Construction and Land Development	—		2,210		2,210		112,398		114,608
Residential	—		320		320		150,000		150,320
Consumer & Other	3		—		3		36,741		36,744
Total	$	1,915	$	10,899	$	12,814	$	2,098,011	$	2,110,825

	December 31, 2012
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial & Industrial	$	14	$	—	$	14	$	962,870	$	962,884
Real Estate:
Commercial - Owner Occupied	1,352		2,081		3,433		329,809		333,242
Commercial - Investor Owned	—		4,045		4,045		482,422		486,467
Construction and Land Development	1,201		1,559		2,760		158,151		160,911
Residential	616		593		1,209		144,349		145,558
Consumer & Other	34		—		34		16,943		16,977
Total	$	3,217	$	8,278	$	11,495	$	2,094,544	$	2,106,039

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, and current economic factors, among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

• Grades 1, 2, and 3- These grades include loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry.

• Grade 4- This grade includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow.

• Grade 5- This grade includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow.

• Grade 6- This grade includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating.

• Grade 7 - Watch credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Borrowers within this category are expected to turnaround within a 12-month period of time. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support.

• Grade 8- Substandard credits will include those borrowers that are characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted.

• Grade 9- Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual.

The recorded investment by risk category of the Non-covered loans by portfolio class and category at September 30, 2013, which is based upon the most recent analysis performed, and December 31, 2012 is as follows:

	September 30, 2013
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial & Industrial	$	948,844	$	35,321	$	22,858	$	375	$	1,007,398
Real Estate:
Commercial - Owner Occupied	315,715		20,862		14,076		—		350,653
Commercial - Investor Owned	381,553		43,654		25,895		—		451,102
Construction and Land Development	81,799		17,385		14,951		473		114,608
Residential	135,455		7,282		7,583		—		150,320
Consumer & Other	36,740		4		—		—		36,744
Total	$	1,900,106	$	124,508	$	85,363	$	848	$	2,110,825

	December 31, 2012
(in thousands)	Pass (1-6)		Watch (7)		Substandard (8)		Doubtful (9)		Total
Commercial & Industrial	$	912,766	$	29,524	$	18,546	$	2,048	$	962,884
Real Estate:
Commercial - Owner Occupied	290,850		26,336		15,898		158		333,242
Commercial - Investor Owned	389,886		64,707		31,874		—		486,467
Construction and Land Development	124,857		9,543		26,012		499		160,911
Residential	130,159		5,921		9,478		—		145,558
Consumer & Other	16,972		5		—		—		16,977
Total	$	1,865,490	$	136,036	$	101,808	$	2,705	$	2,106,039

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Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]
Net income as reported	$ 8,410	$ 7,930	$ 29,483	$ 22,881
Preferred stock dividend	0	(436)	0	(1,312)
Accretion of preferred stock discount	0	(212)	0	(621)
Net income available to common shareholders	8,410	7,282	29,483	20,948
Impact of assumed conversions
Interest on 9% convertible trust preferred securities, net of income tax	217	371	926	1,113
Net income available to common shareholders and assumed conversions	$ 8,627	$ 7,653	$ 30,409	$ 22,061
Weighted average common shares outstanding (in shares)	18,779,000	17,876,000	18,288,000	17,829,000
Incremental shares from assumed conversions of convertible trust preferred securities (in shares)	851,000	1,439,000	1,241,000	1,439,000
Additional dilutive common stock equivalents (in shares)	200,000	100,000	153,000	34,000
Weighted average diluted common shares outstanding (in shares)	19,830,000	19,415,000	19,682,000	19,302,000
Basic earnings per common share: (in dollars per share)	$ 0.45	$ 0.41	$ 1.61	$ 1.17
Diluted earnings per common share: (in dollars per share)	$ 0.44	$ 0.39	$ 1.55	$ 1.14
Antidilutive Securities Excluded from Computation of Earnings Per Share
Common stock equivalents excluded from earnings per share calculations due to anti-dilutive effect (in shares)	474,267	1,036,896	488,318	1,028,450
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share
Common stock equivalents excluded from earnings per share calculations due to anti-dilutive effect (in shares)		324,074	9,497	324,074
Convertible Debt Securities
Debt Instrument, Interest Rate, Stated Percentage [Abstract]
Convertible trust preferred securities, interest rate, stated percentage	9.00%	9.00%	9.00%	9.00%

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Portfolio Loans Covered by Loss Share (Covered loans) - Summary of Covered Loans by Category (Details) (Covered Loans, USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Covered Loans [Line Items]
Recorded Investment Covered Loans	$ 158,812	$ 201,118
Construction and Land Development
Covered Loans [Line Items]
Weighted-Average Risk Rating	6.96	7.06
Recorded Investment Covered Loans	15,332	30,537
Commercial Real Estate Investor Owned
Covered Loans [Line Items]
Weighted-Average Risk Rating	6.54	6.08
Recorded Investment Covered Loans	51,842	57,602
Commercial Real Estate Owner Occupied
Covered Loans [Line Items]
Weighted-Average Risk Rating	6.87	6.65
Recorded Investment Covered Loans	43,252	47,140
Residential Real Estate
Covered Loans [Line Items]
Weighted-Average Risk Rating	5.95	5.68
Recorded Investment Covered Loans	37,446	42,531
Real Estate Loans
Covered Loans [Line Items]
Recorded Investment Covered Loans	147,872	177,810
Commercial & Industrial
Covered Loans [Line Items]
Weighted-Average Risk Rating	6.99	6.57
Recorded Investment Covered Loans	9,095	22,034
Consumer & Other
Covered Loans [Line Items]
Weighted-Average Risk Rating	6.43	4.19
Recorded Investment Covered Loans	$ 1,845	$ 1,274

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

The Company is a party to various derivative financial instruments that are used in the normal course of business to meet the needs of its clients and as part of its risk management activities. These instruments include interest rate swaps and option contracts and foreign exchange forward contracts. The Company does not enter into derivative financial instruments for trading or speculative purposes.

Interest rate swap contracts involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying principal amounts. The Company enters into interest rate swap contracts on behalf of its clients and also utilizes such contracts to reduce or eliminate the exposure to changes in the cash flows or fair value of hedged assets or liabilities due to changes in interest rates. Interest rate option contracts consist of caps and provide for the transfer or reduction of interest rate risk in exchange for a fee. Foreign exchange forward contracts are agreements between two parties to exchange a specified amount of one currency for another currency at a specified foreign exchange rate on a future date. The Company enters into foreign exchange forward contracts with its clients and enters into an offsetting foreign exchange contract with established financial institution counterparties.

All derivative financial instruments, whether designated as hedges or not, are recorded on the consolidated balance sheet at fair value within Other assets or Other liabilities. The accounting for changes in the fair value of a derivative in the consolidated statement of operations depends on whether the contract has been designated as a hedge and qualifies for hedge accounting. At September 30, 2013, and December 31, 2012, the Company did not have any derivatives designated as cash flow or fair value hedges.

Using derivative instruments means assuming counterparty credit risk. Counterparty credit risk relates to the loss the Company could incur if a counterparty were to default on a derivative contract. Notional amounts of derivative financial instruments do not represent credit risk, and are not recorded in the consolidated balance sheet. They are used merely to express the volume of this activity. The overall credit risk and exposure to individual counterparties is monitored. The Company does not anticipate nonperformance by any counterparties. The amount of counterparty credit exposure is the unrealized gains, if any, on such derivative contracts along with the value of foreign exchange forward contracts. At September 30, 2013 and December 31, 2012, the Company had $1.1 million and $1.7 million of counterparty credit exposure on derivatives, respectively. At September 30, 2013, and December 31, 2012, the Company had pledged cash of $730,000 and $3.3 million, respectively, as collateral in connection with our interest rate swap agreements.

Risk Management Instruments. The Company enters into certain derivative contracts to economically hedge state tax credits and certain loans.

• Economic hedge of state tax credits. In November 2008, the Company paid $2.1 million to enter into a series of interest rate caps in order to economically hedge changes in fair value of the state tax credits held for sale. In February 2010, the Company paid $751,000 for an additional series of interest rate caps. See Note 8—Fair Value Measurements for further discussion of the fair value of the state tax credits.

The table below summarizes the notional amounts and fair values of the derivative instruments used to manage risk.

					Asset Derivatives (Other Assets)				Liability Derivatives (Other Liabilities)
	Notional Amount				Fair Value				Fair Value
(in thousands)	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
Non-designated hedging instruments
Interest rate cap contracts	$	34,050	$	49,050	$	14	$	13	$	—	$	—

The following table shows the location and amount of gains and losses related to derivatives used for risk management purposes that were recorded in the condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012.

	Location of Gain or (Loss) Recognized in Operations on Derivative	Amount of Gain or (Loss) Recognized in Operations on Derivative						Amount of Gain or (Loss) Recognized in Operations on Derivative
		Three months ended September 30,						Nine months ended September 30,
(in thousands)		2013			2012			2013		2012
Non-designated hedging instruments
Interest rate cap contracts	Gain on state tax credits, net	$	(9	)	$	(14	)	$	1	$	(79	)

Client-Related Derivative Instruments. As an accommodation to certain customers, the Company enters into interest rate swaps to economically hedge changes in fair value of certain loans. The table below summarizes the notional amounts and fair values of the client-related derivative instruments.

					Asset Derivatives (Other Assets)				Liability Derivatives (Other Liabilities)
	Notional Amount				Fair Value				Fair Value
(in thousands)	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
Non-designated hedging instruments
Interest rate swap contracts	$	139,223	$	126,962	$	1,114	$	1,741	$	1,114	$	1,979

Changes in the fair value of client-related derivative instruments are recognized currently in operations. The following table shows the location and amount of gains and losses recorded in the condensed consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012.

	Location of Gain or (Loss) Recognized in Operations on Derivative	Amount of Gain or (Loss) Recognized in Operations on Derivative						Amount of Gain or (Loss) Recognized in Operations on Derivative
		Three months ended September 30,						Nine months ended September 30,
(in thousands)		2013			2012			2013			2012
Non-designated hedging instruments
Interest rate swap contracts	Interest and fees on loans	$	(32	)	$	(103	)	$	(205	)	$	(354	)

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Investments

9 Months Ended

Sep. 30, 2013

Investments [Abstract]

Investments

INVESTMENTS

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale:

	September 30, 2013
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	93,680	$	599	$	(305	)	$	93,974
Obligations of states and political subdivisions	51,702		1,079		(1,588		)	51,193
Residential mortgage-backed securities	310,907		3,127		(6,155		)	307,879
	$	456,289	$	4,805	$	(8,048	)	$	453,046
	December 31, 2012
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	149,039	$	3,329	$	—		$	152,368
Obligations of states and political subdivisions	51,202		2,279		(478		)	53,003
Residential mortgage-backed securities	427,221		7,884		(264		)	434,841
	$	627,462	$	13,492	$	(742	)	$	640,212

At September 30, 2013, and December 31, 2012, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. government agencies and sponsored enterprises. The residential mortgage-backed securities are all issued by U.S. government sponsored enterprises. Available for sale securities having a fair value of $227.5 million and $359.3 million at September 30, 2013, and December 31, 2012, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities classified as available for sale at September 30, 2013, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 5 years.

(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	885	$	892
Due after one year through five years	107,062		107,703
Due after five years through ten years	23,333		23,516
Due after ten years	14,102		13,056
Mortgage-backed securities	310,907		307,879
	$	456,289	$	453,046

The following table represents a summary of available-for-sale investment securities that had an unrealized loss:

	September 30, 2013
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government-sponsored enterprises	$	30,355	$	305	$	—	$	—	$	30,355	$	305
Obligations of states and political subdivisions	$	20,306	$	1,230	$	3,042	$	358	$	23,348	$	1,588
Residential mortgage-backed securities	188,849		5,692		8,779		463		197,628		6,155
	$	239,510	$	7,227	$	11,821	$	821	$	251,331	$	8,048
	December 31, 2012
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	6,434		122		3,389		356		9,823		478
Residential mortgage-backed securities	40,471		143		11,266		121		51,737		264
	$	46,905	$	265	$	14,655	$	477	$	61,560	$	742

The unrealized losses at both September 30, 2013, and December 31, 2012, were primarily attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security and (5) the intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value. At September 30, 2013, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.

The gross gains and gross losses realized from sales of available-for-sale investment securities were as follows:

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013			2012
Gross gains realized	$	611	$	—	$	1,477		$	1,399
Gross losses realized	—		—		(182		)	(243		)
Proceeds from sales	36,710		—		159,604			110,876

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Condensed Consolidated Statements of Shareholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Preferred Stock [Member]	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Parent [Member]
Balance at Dec. 31, 2011		$ 33,293	$ 178	$ (1,743)	$ 169,138	$ 35,097	$ 3,602	$ 239,565
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,881	0	0	0	0	22,881	0	22,881
Total comprehensive income	28,667	0	0	0	0	0	5,786	5,786
Cash dividends paid on common shares, $0.1575 per share		0	0	0	0	(2,813)	0	(2,813)
Cash dividends paid on preferred stock		0	0	0	0	(1,312)	0	(1,312)
Preferred stock accretion of discount		621	0	0	0	(621)	0	0
Issuance under equity compensation plans, net		0	2	0	1,530	0	0	1,532
Stock Issued During Period, Value, Conversion of Convertible Securities	0
Share-based compensation		0	0	0	1,791	0	0	1,791
Excess tax benefit related to equity compensation plans		0	0	0	86	0	0	86
Balance at Sep. 30, 2012		33,914	180	(1,743)	172,545	53,232	9,388	267,516
Balance at Dec. 31, 2012	235,745	0	181	(1,743)	173,299	56,218	7,790	235,745
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	29,483	0	0	0	0	29,483	0	29,483
Total comprehensive income	19,712	0	0	0	0	0	(9,771)	(9,771)
Cash dividends paid on common shares, $0.1575 per share		0	0	0	0	(2,924)	0	(2,924)
Repurchase of common stock warrants		0	0	0	(1,006)	0	0	(1,006)
Issuance under equity compensation plans, net		0	1	0	2,550	0	0	2,551
Stock Issued During Period, Value, Conversion of Convertible Securities	20,443	0	12	0	20,431	0	0	20,443
Share-based compensation		0	0	0	3,136	0	0	3,136
Excess tax benefit related to equity compensation plans		0	0	0	83	0	0	83
Balance at Sep. 30, 2013	$ 277,740	$ 0	$ 194	$ (1,743)	$ 198,493	$ 82,777	$ (1,981)	$ 277,740

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Fair Value Measurements - Estimate of the Fair Value of Financial Instruments Not Recorded at Fair Value on Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Financial Assets:
State tax credits held for sale	$ 20,139	$ 23,020
Fair Value, Level 1
Financial Assets:
Portfolio loans, net	0	0
State tax credits held for sale	0	0
Financial Liabilities:
Deposits	1,825,274	2,079,141
Subordinated debentures	0	0
Federal Home Loan Bank advances	0	0
Other borrowings	0	0
Fair Value, Level 2
Financial Assets:
Portfolio loans, net	0	0
State tax credits held for sale	0	0
Financial Liabilities:
Deposits	0	0
Subordinated debentures	40,474	65,840
Federal Home Loan Bank advances	126,234	89,301
Other borrowings	178,228	245,224
Fair Value, Level 3
Financial Assets:
Portfolio loans, net	2,229,411	2,266,834
State tax credits held for sale	40,798	43,802
Financial Liabilities:
Deposits	628,696	589,972
Subordinated debentures	0	0
Federal Home Loan Bank advances	0	0
Other borrowings	0	0
Estimated fair value
Financial Assets:
Portfolio loans, net	2,229,411	2,266,834
State tax credits held for sale	40,798	43,802
Financial Liabilities:
Deposits	2,453,970	2,669,113
Subordinated debentures	40,474	65,840
Federal Home Loan Bank advances	126,234	89,301
Other borrowings	$ 178,228	$ 245,224

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Derivative Financial Instruments (Details) (USD $)	1 Months Ended						3 Months Ended		9 Months Ended								3 Months Ended		9 Months Ended
	Feb. 28, 2010	Nov. 30, 2008	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Non-designated hedging instruments Risk Management Interest rate cap contracts	Dec. 31, 2012 Non-designated hedging instruments Risk Management Interest rate cap contracts	Sep. 30, 2013 Non-designated hedging instruments Risk Management Gain on state tax credits, net Interest rate cap contracts	Sep. 30, 2012 Non-designated hedging instruments Risk Management Gain on state tax credits, net Interest rate cap contracts	Sep. 30, 2013 Non-designated hedging instruments Risk Management Gain on state tax credits, net Interest rate cap contracts	Sep. 30, 2012 Non-designated hedging instruments Risk Management Gain on state tax credits, net Interest rate cap contracts	Sep. 30, 2013 Non-designated hedging instruments Risk Management Other Assets Interest rate cap contracts	Dec. 31, 2012 Non-designated hedging instruments Risk Management Other Assets Interest rate cap contracts	Sep. 30, 2013 Non-designated hedging instruments Risk Management Other Liabilities Interest rate cap contracts	Dec. 31, 2012 Non-designated hedging instruments Risk Management Other Liabilities Interest rate cap contracts	Sep. 30, 2013 Non-designated hedging instruments Client-Related Interest rate swap contracts	Dec. 31, 2012 Non-designated hedging instruments Client-Related Interest rate swap contracts	Sep. 30, 2013 Non-designated hedging instruments Client-Related Interest and fees on loans Interest rate swap contracts	Sep. 30, 2012 Non-designated hedging instruments Client-Related Interest and fees on loans Interest rate swap contracts	Sep. 30, 2013 Non-designated hedging instruments Client-Related Interest and fees on loans Interest rate swap contracts	Sep. 30, 2012 Non-designated hedging instruments Client-Related Interest and fees on loans Interest rate swap contracts	Sep. 30, 2013 Non-designated hedging instruments Client-Related Other Assets Interest rate swap contracts	Dec. 31, 2012 Non-designated hedging instruments Client-Related Other Assets Interest rate swap contracts	Sep. 30, 2013 Non-designated hedging instruments Client-Related Other Liabilities Interest rate swap contracts	Dec. 31, 2012 Non-designated hedging instruments Client-Related Other Liabilities Interest rate swap contracts
Derivative [Line Items]
Unrealized Gain Derivative Instruments			$ 1,100,000	$ 1,700,000
Derivative, Collateral, Right to Reclaim Cash			730,000	3,270,000
Amount Paid to Enter Into a Series of Interest Rate Caps	751,000	2,100,000
Summary of Derivative Instruments [Abstract]
Notional Amount					34,050,000	49,050,000									139,223,000	126,962,000
Asset Derivatives, Fair Value											14,000	13,000									1,114,000	1,741,000
Liability Derivatives, Fair Value													0	0									1,114,000	1,979,000
Amount of Gain or (Loss) Recognized in Operations on Derivative							$ (9,000)	$ (14,000)	$ 1,000	$ (79,000)							$ (32,000)	$ (103,000)	$ (205,000)	$ (354,000)

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Investments - Schedule of Unrealized Loss on Investments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Vaule	$ 239,510	$ 46,905
Less than 12 months, Unrealized Losses	7,227	265
12 months or more, Fair Value	11,821	14,655
12 months or more, Unrealized Losses	821	477
Total, Fair Value	251,331	61,560
Total, Unrealized Losses	8,048	742
Obligations of U.S. government sponsored enterprises
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Vaule	30,355
Less than 12 months, Unrealized Losses	305
12 months or more, Fair Value	0
12 months or more, Unrealized Losses	0
Total, Fair Value	30,355
Total, Unrealized Losses	305
Obligations of the state and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Vaule	20,306	6,434
Less than 12 months, Unrealized Losses	1,230	122
12 months or more, Fair Value	3,042	3,389
12 months or more, Unrealized Losses	358	356
Total, Fair Value	23,348	9,823
Total, Unrealized Losses	1,588	478
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Vaule	188,849	40,471
Less than 12 months, Unrealized Losses	5,692	143
12 months or more, Fair Value	8,779	11,266
12 months or more, Unrealized Losses	463	121
Total, Fair Value	197,628	51,737
Total, Unrealized Losses	$ 6,155	$ 264

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Branch Sale

9 Months Ended

Sep. 30, 2013

Branch Sale [Abstract]

Branch Sale

BRANCH SALE

On July 3, 2013 the Company entered into an agreement to sell two of its Kansas City branches to another financial institution. The agreement calls for the sale of substantially all of the deposits at these branches, as well as specified loans and other assets. The Company expects to record a gain upon completion of the transaction primarily attributed to a premium on the deposits that will be sold. Regulatory approval for the transaction occurred in the third quarter of 2013 and the sale is expected to be completed in the fourth quarter of 2013.

The following table summarizes the primary balance sheet amounts relative to the branches to be sold:

(in thousands)
Assets
Cash and cash equivalents	$	805
Loans	7,696
Other assets	1,206
Liabilities
Deposits	$	81,298

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

The Company issues financial instruments with off balance sheet risk in the normal course of the business of meeting the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments may involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

The Company’s extent of involvement and maximum potential exposure to credit loss under commitments to extend credit and standby letters of credit in the event of nonperformance by the other party to the financial instrument is represented by the contractual amount of these instruments.

The Company uses the same credit policies in making commitments and conditional obligations as it does for financial instruments included on its consolidated balance sheets. At September 30, 2013, there were $1.7 million of unadvanced commitments on impaired loans compared to $775,000 at December 31, 2012. Other liabilities include approximately $241,000 and $124,000 at September 30, 2013 and December 31, 2012 for estimated losses attributable to the unadvanced commitments on impaired loans.

The contractual amounts of off-balance-sheet financial instruments as of September 30, 2013, and December 31, 2012, are as follows:

(in thousands)	September 30, 2013		December 31, 2012
Commitments to extend credit	$	769,704	$	722,325
Standby letters of credit	43,452		42,561

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments usually have fixed expiration dates or other termination clauses, may have significant usage restrictions, and may require payment of a fee. Of the total commitments to extend credit at September 30, 2013, and December 31, 2012, approximately $38.6 million and $50.7 million, respectively, represent fixed rate loan commitments. Since certain of the commitments may expire without being drawn upon or may be revoked, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. The type of collateral held varies, but may include accounts receivable, inventory, premises and equipment, and real estate.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These standby letters of credit are issued to support contractual obligations of the Company’s customers. The credit risk involved in issuing letters of credit is essentially the same as the risk involved in extending loans to customers. The approximate remaining terms of standby letters of credit range from 6 months to 5 years at September 30, 2013.

Contingencies

The Company and its subsidiaries are, from time to time, parties to various legal proceedings arising out of their businesses. Although we are not able to predict the outcome of such actions, management believes that there are no such proceedings pending or threatened against the Company or its subsidiaries which, if determined adversely, would have a material adverse effect on the business, consolidated financial condition, results of operations or cash flows of the Company or any of its subsidiaries.

Distinctive Notes

The Bank, along with other co-defendants, had been named as a defendant in lawsuits filed by persons alleging to be clients of the Bank’s Trust division who invested in promissory notes (the "Distinctive Notes") issued by Distinctive Properties (UK) Limited (“Distinctive Properties”), a company involved in the purchase and development of real estate in the United Kingdom.

Rosemann, et al. v. Martin Sigillito, et al. 

In a lawsuit filed in United States District Court for the Eastern District of Missouri, the plaintiffs alleged that the investments in the Distinctive Notes were part of a multi-million dollar Ponzi scheme. Plaintiffs alleged to hold such promissory notes in accounts with the Trust division and that, among other things, the Bank was negligent and breached its contracts. Plaintiffs also alleged that the Bank violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”). Plaintiffs, in the aggregate, were seeking damages from defendants, including the Bank, in excess of $44.0 million as well as their costs and attorneys’ fees and trebled damages under RICO.

The case was stayed while criminal proceedings against Sigillito were completed. After a four week trial, Sigillito was found guilty of 20 counts of wire fraud, mail fraud, conspiracy, and money laundering. Following the verdict, the judge lifted the stay and set the case for a four week jury trial starting August 26, 2013. Discovery concluded on April 16, 2013 and dispositive motions were filed. On July 9, 2013 the judge dismissed all counts related to RICO, as well as the Company's negligence. The Court denied the plaintiffs' motion to reconsider the dismissal. The claims that remained pending against the Company were the breach of contract claims asserted by 41 plaintiffs who held IRA accounts with the Company. On September 24, 2013, the Company reached a confidential settlement with the Plaintiffs. The settlement did not have a material impact on the Company's financial statements.

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Investments (Tables)

9 Months Ended

Sep. 30, 2013

Investments [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale:

	September 30, 2013
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	93,680	$	599	$	(305	)	$	93,974
Obligations of states and political subdivisions	51,702		1,079		(1,588		)	51,193
Residential mortgage-backed securities	310,907		3,127		(6,155		)	307,879
	$	456,289	$	4,805	$	(8,048	)	$	453,046
	December 31, 2012
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	149,039	$	3,329	$	—		$	152,368
Obligations of states and political subdivisions	51,202		2,279		(478		)	53,003
Residential mortgage-backed securities	427,221		7,884		(264		)	434,841
	$	627,462	$	13,492	$	(742	)	$	640,212

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of debt securities classified as available for sale at September 30, 2013, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 5 years.

(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	885	$	892
Due after one year through five years	107,062		107,703
Due after five years through ten years	23,333		23,516
Due after ten years	14,102		13,056
Mortgage-backed securities	310,907		307,879
	$	456,289	$	453,046

Schedule of Unrealized Loss on Investments

The following table represents a summary of available-for-sale investment securities that had an unrealized loss:

	September 30, 2013
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government-sponsored enterprises	$	30,355	$	305	$	—	$	—	$	30,355	$	305
Obligations of states and political subdivisions	$	20,306	$	1,230	$	3,042	$	358	$	23,348	$	1,588
Residential mortgage-backed securities	188,849		5,692		8,779		463		197,628		6,155
	$	239,510	$	7,227	$	11,821	$	821	$	251,331	$	8,048
	December 31, 2012
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of states and political subdivisions	6,434		122		3,389		356		9,823		478
Residential mortgage-backed securities	40,471		143		11,266		121		51,737		264
	$	46,905	$	265	$	14,655	$	477	$	61,560	$	742

Schedule of Realized Gain (Loss)

The gross gains and gross losses realized from sales of available-for-sale investment securities were as follows:

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2013		2012		2013			2012
Gross gains realized	$	611	$	—	$	1,477		$	1,399
Gross losses realized	—		—		(182		)	(243		)
Proceeds from sales	36,710		—		159,604			110,876

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block]

Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security and (5) the intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value.

Derivatives, Policy [Policy Text Block]

All derivative financial instruments, whether designated as hedges or not, are recorded on the consolidated balance sheet at fair value within Other assets or Other liabilities. The accounting for changes in the fair value of a derivative in the consolidated statement of operations depends on whether the contract has been designated as a hedge and qualifies for hedge accounting.

Basis of Accounitng and Consolidation, Policy

Basis of Financial Statement Presentation

The condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and footnotes required by U.S. GAAP for annual financial statements. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The Company has adopted the new accounting guidance surrounding comprehensive income by presenting a separate Statement of Comprehensive Income. The Statement of Comprehensive Income includes the amount and the related tax impact that have been reclassified from accumulated other comprehensive income to net income. The reclassification adjustment for unrealized gain on sale of securities included in net income has been recorded through the gain on sale of investment securities line item, within noninterest income, in the Company's Condensed Consolidated Statements of Operations.

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Document and Entity Information Document	9 Months Ended
	Sep. 30, 2013	Oct. 31, 2013
Entity Information [Line Items]
Entity Registrant Name	ENTERPRISE FINANCIAL SERVICES CORP
Entity Central Index Key	0001025835
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		19,276,365

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Summary of Per Common Share Data and Amounts

The following table presents a summary of per common share data and amounts for the periods indicated.

	Three months ended September 30,					Nine months ended September 30,
(in thousands, except per share data)	2013		2012			2013		2012
Net income as reported	$	8,410	$	7,930		$	29,483	$	22,881
Preferred stock dividend	—		(436		)	—		(1,312		)
Accretion of preferred stock discount	—		(212		)	—		(621		)
Net income available to common shareholders	$	8,410	$	7,282		$	29,483	$	20,948
Impact of assumed conversions
Interest on 9% convertible trust preferred securities, net of income tax	217		371			926		1,113
Net income available to common shareholders and assumed conversions	$	8,627	$	7,653		$	30,409	$	22,061
Weighted average common shares outstanding	18,779		17,876			18,288		17,829
Incremental shares from assumed conversions of convertible trust preferred securities	851		1,439			1,241		1,439
Additional dilutive common stock equivalents	200		100			153		34
Weighted average diluted common shares outstanding	19,830		19,415			19,682		19,302
Basic earnings per common share:	$	0.45	$	0.41		$	1.61	$	1.17
Diluted earnings per common share:	$	0.44	$	0.39		$	1.55	$	1.14