8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)
January 30, 2009

ENTERPRISE FINANCIAL SERVICES
CORP
(Exact name of registrant as specified in its charter)

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

150 N. Meramec, St. Louis, Missouri	63105
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code

(314) 725-5500

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02     RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On January 30, 2009, Registrant issued a press release announcing financial information for its year ended December 31, 2008. The press release is attached hereto as Exhibit 99.1 and is filed with, not furnished to, the Commission.

ITEM 9.01     Financial Statements and Exhibits

(c)     Exhibits

Exhibit No.	Description
99.1	Press Release dated January 30, 2009

SIGNATURE

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

Date: January 30, 2009

ENTERPRISE FINANCIAL SERVICES CORP 

/s/ Deborah N. Barstow 

Deborah N. Barstow 

Senior Vice President and Controller 

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press Release dated January 30, 2009*

*This exhibit is filed with, not furnished to, the Commission by inclusion herein.

EX-99.1

Exhibit 99.1

For more information contact:
Peter Benoist or Frank Sanfilippo (314) 725 5500
Jerry Mueller (314) 512-7251 or Ann Marie Mayuga (314) 485 4390

ENTERPRISE FINANCIAL REPORTS 2008 FOURTH QUARTER 

AND YEAR END RESULTS

• 2008 reported earnings per share of $0.35; operating earnings per share of $0.71
• Fourth quarter net loss of $0.31 per share includes $0.20 per share in MBG goodwill and intangible impairment and acquisition-related retention payout
• Loans increase at 7% annual rate in fourth quarter and 20% for the year
• Core deposits increase 8% in the fourth quarter; total deposits increase 6% for the quarter and 13% for the year
• Company adds $60 million in capital, raising its total risk-based capital ratio to 12.82%

St. Louis, January 30, 2009. Enterprise Financial Services Corp (NASDAQ: EFSC) reported net income for 2008 of $4.4 million, or $0.35 per fully diluted share, compared to $17.6 million or $1.40 per share for 2007. Included in the 2008 results are $9.2 million in pre-tax, non-cash goodwill and intangible impairment charges related to Millennium Brokerage Group (MBG), the Company’s wholesale insurance distribution subsidiary, $3.4 million in pre-tax gains on the sale of nonstrategic branches in the Kansas City area and a $1.0 million charge related to a payout under an employee retention agreement.

Excluding these non-recurring items, operating earnings for the year were $9.1 million, or $0.71 per share.

For the fourth quarter of 2008, the Company reported a net loss of $4.0 million, or $0.31 per fully diluted share, compared to a net profit of $4.9 million, or $0.39 per share, for the prior year period. Fourth quarter 2008 results included a $3.3 million pre-tax goodwill and other intangible impairment charge related to MBG and an $875,000 employee retention payout. The after tax impact of these charges was $0.20 per diluted share. Excluding the impairment charge and employee retention payout, the Company’s net operating loss for the fourth quarter was $1.3 million, or $0.11 per share. The net operating loss for the quarter was primarily attributable to higher loan loss provision totaling $14.1 million in the fourth quarter 2008 compared to $2.5 million in the prior year period.

We are presenting operating earnings and loss figures, which are non-GAAP (Generally Accepted Accounting Principles) financial measures, because we believe adjusting our results to exclude non-recurring items provides shareholders with a more comparable basis for evaluating our period-to-period operating results and financial performance. A schedule reconciling GAAP net (loss) income to operating (loss) earnings is provided in the attached tables.

Capital Management
During the fourth quarter, the Company added $60 million in regulatory capital, raising its total risk-based capital ratio to 12.82% - well in excess of regulatory guidelines. On December 12, 2008, the Company completed a private placement of $25 million in convertible trust preferred securities with two institutional investors. The securities carry a 9% coupon and are convertible into 1,439,263 shares of EFSC common stock for $17.37 per share. Subsequently, on December 19, 2008, the Company added $35 million in regulatory capital through the sale of 35,000 shares of senior preferred stock and the issuance of warrants to the US Treasury. The warrants allow the US Treasury to purchase 324,074 shares of common stock for $16.20 per share. The preferred stock has a dividend of 5% per year, increasing to 9% in 2014 if not redeemed.

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Banking Line of Business

Deposits and LiquidityFrom an industry perspective, the fourth quarter of the year was particularly challenging as the instability and volatility of the financial markets caused a massive “flight to quality” to the Treasury markets. In spite of this turmoil in the industry, the Company increased core deposits $113 million, or 8%, during the quarter.

For the year, deposits rose $208 million, or 13%, to $1.8 billion. Excluding brokered deposits and the effects of the sale of approximately $37 million in core deposits related to branch sales, core deposits increased $23 million, or 2%, in 2008. Core deposits include certificates of deposit sold to Bank clients through the CDARS program, totaling $60 million at year end.

The Company elected to “opt-in” to the expanded FDIC deposit insurance program and the government sponsored debt issuance guaranty program, which represents an additional source of liquidity.

LoansNet loans increased 7% on an annualized basis in the fourth quarter. The Company continued to institute more effective loan pricing strategies to counteract the negative impact of rapidly declining short-term interest rates in the fourth quarter. For the full year, net loans increased $336 million, or 20%. More than 60% of the net loan growth was related to commercial and industrial businesses. Net loan growth was funded by the growth in deposits as described above along with increased wholesale borrowings.

The Company’s loan portfolio mix at December 31, 2008, from both industry and collateral perspectives, did not change significantly from December 31, 2007. Loans collateralized by commercial real estate totaled $829 million at year end 2008. Approximately $318 million, or 38% of that total, represented real estate that was “owner-occupied” by commercial and industrial businesses.

Asset qualityNonperforming loans rose $6.1 million, or 26%, on a linked quarter basis. Total nonperforming loans of $29.7 million represented 1.50% of total loans at December 31, 2008 compared to 1.21% at September 30, 2008. Past due loans, excluding nonperforming loans, were 0.70% of loans at year end compared to 0.79% at the end of the third quarter.

Nonperforming loans at December 31, 2008 by industry segment were as follows:

Commercial Real Estate	$16.1 million
Residential Construction /
Land Acquisition and Development	11.8 million
Commercial & Industrial	1.7 million
Other	0.1 million
	$29.7 million

Other real estate at December 31, 2008 was $13.9 million, up $2.6 million, or 23%, from September 30, 2008. During 2008, the Company sold $7.9 million in other real estate for a net gain of $552,000. Residential lots and completed homes represented 80% of other real estate at year end. All properties are in the Company’s St. Louis and Kansas City markets.

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Total nonperforming assets were $43.5 million, or 1.92% of total assets, at December 31, 2008 compared to 1.56% at September 30, 2008.

Net charge-offs were $8.5 million in the fourth quarter, due primarily to losses on two relationships totaling $5.5 million described in the Company’s third quarter report and write downs related to the deteriorating residential construction markets. For the year, net charge-offs were $12.7 million, representing 0.70% of average loans.

Provision for loan losses was $14.1 million in the fourth quarter and $22.5 million for the year.

The Company increased its ratio of the allowance for loan losses to portfolio loans to 1.58% at year end from 1.32% in the third quarter. The reserve coverage equaled 106% of nonperforming loans at year end.

Peter Benoist, President and CEO, commented, “The financial crisis on Wall Street has led to a significant downturn in the economy, particularly during the fourth quarter of the year. As a result, we felt it prudent to recognize asset exposures where appropriate and to bolster our loan loss reserves as a result of the rapidly deteriorating economic trends. Enterprise’s 2008 reported financial results were driven largely by these fourth quarter actions, which led to a $17.9 million increase in loan loss provision for the full year, as well as the $9.2 million in non-cash impairment charges related to MBG.”

Net Interest IncomeNet interest income in the banking segment increased $752,000, or 4%, for the quarter and $6.8 million, or 10%, for the full year, totaling $71.6 million for the full year.

Including the effect of holding company debt, net interest rate margin increased 3 basis points to 3.37% in the fourth quarter, compared to 3.34% for the third quarter and 3.80% for the prior year fourth quarter. The margin has been compressed as a result of sharply declining short-term rates, an increased volume of wholesale funding to support loan growth and a roughly 10 basis point impact from the increase in average nonperforming assets compared to the fourth quarter of 2007. In 2009, we expect margins to remain flat as improved loan pricing is expected to be offset by competitive deposit pricing.

Wealth Management Line of Business
Fee income from the Wealth Management line of business, including income from state tax credit brokerage activities, totaled $5.6 million for the fourth quarter of 2008, a 15% increase from the same period in 2007. For the year, Wealth Management fee income was $15.0 million, or 2% higher than 2007.

Excluding the goodwill and intangible impairment charges for MBG, expenses in Wealth Management were flat in the fourth quarter 2008 compared to same period in 2007. For the year 2008, Wealth Management expenses increased $861,000 from 2007. This increase was primarily due to the restructuring of MBG’s compensation for principals as part of the Company’s buyout of the remaining minority interest in MBG on December 31, 2007.

TrustTrust revenues were down $523,000, or 24%, for the quarter, and down $1.0 million, or 13%, for the year. The primary drivers of the decline were overall equity market declines, coupled with lost client advisory revenues resulting from personnel turnover earlier in the year.

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Trust fiduciary revenues totaled $3.3 million for the full year 2008, an increase of 9% over the prior year. Demand for Trust fiduciary services increased during the year primarily as a result of market disruptions resulting from the acquisition of a major St. Louis investment firm.

During the fourth quarter, Enterprise Trust completed several initiatives designed to enhance client service. We relocated our St. Louis advisory organization to new offices in a high-visibility residential condominium tower in the heart of Clayton, MO and converted our client account reporting and aggregation systems to a more robust technology platform.

Millennium Brokerage GroupMBG revenues were down $540,000, or 26%, in the fourth quarter compared to the same period in 2007 and down $1.9 million, or 28%, for the year.

While sales margins rebounded near expected levels in the fourth quarter, paid premium sales were down from 2007 as a result of tighter underwriting standards, continued disruption from the growing influence of aggregators and general turmoil in the financial services industry. We expect cash earnings in 2009 to be flat with 2008.

In the third quarter, the Company recorded a $5.9 million pre-tax goodwill impairment charge, reflecting the impact of pressure on MBG margins and earnings in the face of a consolidating insurance industry. The fourth quarter impairment charge reflected a further adjustment of the value of goodwill and other intangibles at MBG due to the deteriorating operating environment and lower cash earnings from MBG. The remaining goodwill and intangibles at MBG totaled $4.5 million at year end 2008. The Company continues to evaluate strategic alternatives for MBG, although these efforts have been hampered by adverse financial markets.

State Tax Credit BrokerageFor the fourth quarter of 2008, state tax credit brokerage activities generated $2.6 million in fee income, versus $759,000 in the fourth quarter of 2007. Of this total, $2.0 million consisted of the mark-to-market adjustments under FASB 159 on the inventory of tax credit assets, offset by the fair value adjustments related to interest rate caps purchased during the quarter.

Fee income from state tax credit brokerage activities was $4.2 million in 2008, compared to $792,000 in 2007. The increase reflected the results of the brokerage group’s first full year of activity.

Other Business Results
For the fourth quarter, excluding the $3.3 million goodwill and intangible impairment charge on MBG, noninterest expenses increased $1.4 million, or 11%. $875,000 of the increase represented the resolution of a $1.0 million executive retention agreement connected with the acquisition of Great American Bank in 2007. The remaining increase in noninterest expenses was due to additional write-downs and expenses on other real estate, higher FDIC insurance expenses and higher expenses associated with nonperforming loans. These increases were partially offset by lower variable compensation expenses driven by Company financial results.

For the year 2008, excluding $9.2 million in goodwill and intangible impairment charges on MBG and the $1.0 million retention agreement payment, noninterest expenses for the year increased $3.8 million, or 8%, over 2007. Excluding the impairment charges, the retention payment and the branch sale gain, the Company’s efficiency ratio in the fourth quarter was 56.3% versus 58.3% in the same quarter of 2007 and 60.6% for the full year 2008 versus 61.3% in 2007.

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Although the Company had applied for a new Arizona state bank charter, banking regulators have curtailed new charter approvals as a result of conditions in the Arizona real estate market. In the interim, Enterprise Bank & Trust continues to operate a successful and growing loan production office in Phoenix.

In light of the difficult operating environment, during the fourth quarter the Company took a number of actions to reduce operating expenses. These actions included staff reductions in all three markets, reductions in variable compensation and limitations on filling open positions and staff additions.

Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis and Kansas City and a loan production office in Phoenix AZ. Enterprise is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.

#           #          #

Readers should note that in addition to the historical information contained herein, this press release contains forward-looking statements, which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those contemplated from such statements. We use the words “expect” and “intend” and variations of such words and similar expressions in this communication to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, burdens imposed by federal and state regulations of banks, credit risk, exposure to local and national economic conditions, risks associated with rapid increase or decrease in prevailing interest rates, effects of mergers and acquisitions, effects of critical accounting policies and judgments, legal and regulatory developments and competition from banks and other financial institutions, as well as other risk factors described in Enterprise Financial’s 2007 Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events.

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ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY
(unaudited)

(In thousands, except per share data)	For the Quarter Ended						For the Twelve Months Ended
	Dec 31,			Dec 31,			Dec 31,		Dec 31,
INCOME STATEMENTS	2008			2007			2008		2007
Total interest income	$	29,163		$	31,916		$	117,981	$	122,517
Total interest expense		11,963			15,713			51,258		61,465
Net interest income		17,200			16,203			66,723		61,052
Provision for loan losses		14,125			2,450			22,475		4,615
Net interest income after provision for loan losses		3,075			13,753			44,248		56,437
NONINTEREST INCOME
Wealth Management revenue		2,943			4,064			10,848		13,980
Deposit service charges		1,135			926			4,376		3,228
(Loss) gain on sale of other real estate		(31	)		(43	)		552		(48	)
State tax credit activity, net		2,624			759			4,201		792
Gain on sale of securities		88			233			161		233
Gain on sales of branch/charter		-			-			3,400		-
Other income		891			291			1,735		1,488
Total noninterest income		7,650			6,230			25,273		19,673
NONINTEREST EXPENSE
Salaries and benefits		7,317			7,583			31,024		29,555
Occupancy		1,086			1,003			4,246		3,901
Furniture and equipment		405			384			1,470		1,439
Impairment charges related to Millennium Brokerage Group		3,300			-			9,200		-
Other		5,709			4,113			17,565		14,621
Total noninterest expense		17,817			13,083			63,505		49,516
(Loss) income before income tax		(7,092	)		6,900			6,016		26,594
Income tax (benefit) expense		(3,140	)		1,994			1,586		9,016
Net (loss) income	$	(3,952	)	$	4,906		$	4,430	$	17,578
Basic (loss) earnings per share	$	(0.31	)	$	0.40		$	0.35	$	1.44
Diluted (loss) earnings per share	$	(0.31	)	$	0.39		$	0.35	$	1.40
Return on average assets		(0.70%	)		1.04%			0.21%		1.00%
Return on average common equity		(8.45%	)		11.28%			2.43%		10.89%
Efficiency ratio		71.70%			58.32%			69.03%		61.34%
Noninterest expense to average assets		3.15%			2.77%			2.98%		2.82%
YIELDS (fully tax equivalent)
Loans		5.74%			7.65%			6.20%		7.88%
Securities		4.70%			4.87%			4.72%		4.58%
Federal funds sold		1.59%			4.23%			4.51%		4.78%
Yield on earning assets		5.67%			7.42%			6.09%		7.63%
Interest bearing deposits		2.47%			4.10%			2.84%		4.35%
Subordinated debt		6.04%			7.24%			6.01%		7.21%
Borrowed funds		2.67%			4.54%			3.19%		4.86%
Cost of paying liabilities		2.62%			4.26%			3.00%		4.50%
Net interest spread		3.05%			3.16%			3.09%		3.13%
Net interest rate margin		3.37%			3.80%			3.47%		3.83%

RECONCILATION OF NET (LOSS) INCOME TO OPERATING (LOSS) EARNINGS
(All amounts net of tax, in thousands, except per share data)

	4th Quarter 2008						Total year 2008
	Net income			Diluted EPS			Net income			Diluted EPS
Net (loss) income	$	(3,952	)	$	(0.31	)	$	4,430		$	0.35
Impairment charges related to Millennium Brokerage Group		2,112			0.16			5,888			0.46
Gain on sales of Kansas City nonstrategic branches/charter		-			-			(1,880	)		(0.15	)
Employee retention agreement		560			0.04			640			0.05
Operating (loss) earnings	$	(1,280	)	$	(0.11	)	$	9,078		$	0.71

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ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)

(In thousands)
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
BALANCE SHEETS	2008		2008		2008		2008		2007
ASSETS
Cash and due from banks	$	25,626	$	38,641	$	67,661	$	64,108	$	76,265
Federal funds sold		2,637		1,718		15,630		954		75,665
Interest-bearing deposits		14,384		2,178		349		6,435		1,719
Debt and equity investments		108,315		113,932		120,072		116,810		83,333
Loans held for sale		2,632		520		1,666		3,422		3,420
Portfolio loans		1,977,175		1,942,600		1,849,415		1,726,455		1,641,432
Less allowance for loan losses		31,309		25,662		24,011		22,249		21,593
Net loans		1,945,866		1,916,938		1,825,404		1,704,206		1,619,839
Other real estate		13,868		11,285		9,294		7,736		2,963
Premises and equipment, net		25,158		25,166		25,238		24,775		22,223
State tax credits, held for sale		39,142		37,751		37,882		27,309		23,149
Goodwill		48,512		51,312		57,910		58,331		57,177
Core deposit intangible		2,126		2,256		2,729		2,887		3,330
Other amortizing intangibles		1,378		2,090		2,301		2,512		2,723
Other assets		40,867		32,614		31,582		28,393		27,312
Total assets	$	2,270,511	$	2,236,401	$	2,197,718	$	2,047,878	$	1,999,118
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest bearing deposits	$	247,361	$	225,013	$	240,148	$	232,121	$	278,313
Interest bearing deposits		1,545,423		1,463,040		1,429,598		1,358,588		1,306,699
Total deposits		1,792,784		1,688,053		1,669,746		1,590,709		1,585,012
Subordinated debentures		85,081		59,307		56,807		56,807		56,807
FHLB advances		119,957		222,926		203,043		154,405		152,901
Federal funds purchased		19,400		36,600		-		-		-
Other borrowings		26,760		36,632		72,886		53,508		16,680
Other liabilities		8,404		7,924		12,335		14,212		14,569
Total liabilities		2,052,386		2,051,442		2,014,817		1,869,641		1,825,969
Shareholders' equity		218,125		184,959		182,901		178,237		173,149
Total liabilities and shareholders' equity	$	2,270,511	$	2,236,401	$	2,197,718	$	2,047,878	$	1,999,118

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ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)

(In thousands, except per share data)	For the Quarter Ended
	Dec 31,			Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2008			2008		2008		2008		2007
EARNINGS SUMMARY
Net interest income	$	17,200		$	16,584	$	16,802	$	16,137	$	16,203
Provision for loan losses		14,125			2,825		3,200		2,325		2,450
Wealth Management revenue		2,943			2,640		2,682		2,583		4,064
Noninterest income		4,707			5,001		1,762		2,955		2,166
Noninterest expense		17,817			19,133		12,723		13,832		13,083
(Loss) income before income tax		(7,092	)		2,267		5,323		5,518		6,900
Net (loss) income		(3,952	)		1,319		3,500		3,563		4,906
Diluted earnings per share	$	(0.31	)	$	0.10	$	0.27	$	0.28	$	0.39
Return on average common equity		(8.45%	)		2.81%		7.77%		8.13%		11.28%
Net interest rate margin (fully tax equivalized)		3.37%			3.34%		3.56%		3.63%		3.80%
Efficiency ratio		71.70%			78.98%		59.88%		63.82%		58.32%
MARKET DATA
Book value per common share	$	14.31		$	14.57	$	14.45	$	14.27	$	13.96
Tangible book value per common share	$	10.24		$	10.19	$	9.48	$	9.17	$	8.86
Market value per share	$	15.24		$	22.56	$	18.85	$	25.00	$	23.81
Period end common shares outstanding		12,801			12,694		12,654		12,487		12,406
Average basic common shares		12,702			12,664		12,545		12,441		12,387
Average diluted common shares		12,787			12,817		12,760		12,675		12,676
ASSET QUALITY
Net charge-offs	$	8,478		$	1,124	$	1,439	$	1,668	$	611
Nonperforming loans	$	29,662		$	23,546	$	13,180	$	9,307	$	12,720
Nonperforming loans to total loans		1.50%			1.21%		0.71%		0.54%		0.77%
Nonperforming assets to total assets		1.92%			1.56%		1.02%		0.83%		0.78%
Allowance for loan losses to total loans		1.58%			1.32%		1.30%		1.29%		1.32%
Net charge-offs to average loans (annualized)		1.73%			0.24%		0.32%		0.40%		0.15%
CAPITAL
Average common equity to average assets		8.28%			8.55%		8.62%		8.92%		9.21%
Tier 1 capital to risk-weighted assets		8.91%			8.83%		8.76%		9.15%		9.32%
Total capital to risk-weighted assets		12.82%			10.18%		9.96%		10.36%		10.54%
Tangible common equity to tangible assets		5.91%			5.93%		5.62%		5.77%		5.68%
AVERAGE BALANCES
Portfolio loans	$	1,947,690		$	1,881,428	$	1,790,491	$	1,687,316	$	1,583,325
Earning assets		2,071,560			2,005,635		1,922,309		1,810,384		1,719,825
Total assets		2,246,775			2,184,804		2,102,582		1,974,590		1,873,921
Deposits		1,739,525			1,645,398		1,600,805		1,530,158		1,511,476
Shareholders' equity		190,878			186,848		181,274		176,170		172,563
LOAN PORTFOLIO
Commercial and industrial	$	556,210		$	539,924	$	510,377	$	487,289	$	476,184
Commercial real estate		829,476			845,221		835,688		735,087		690,868
Construction real estate		337,550			313,262		284,556		285,966		266,111
Residential real estate		228,772			218,642		193,630		189,549		170,510
Consumer and other		25,167			25,550		25,164		28,564		37,759
Total loan portfolio	$	1,977,175		$	1,942,599	$	1,849,415	$	1,726,455	$	1,641,432
DEPOSIT PORTFOLIO
Noninterest-bearing accounts	$	247,361		$	225,013	$	240,148	$	232,121	$	278,313
Interest-bearing transaction accounts		126,644			118,614		134,659		136,009		131,141
Money market and savings accounts		710,712			664,436		680,635		724,725		682,920
Certificates of deposit		708,067			679,990		614,304		497,854		492,638
Total deposit portfolio	$	1,792,784		$	1,688,053	$	1,669,746	$	1,590,709	$	1,585,012

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ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)

(In thousands)	For the Quarter Ended
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2008		2008		2008		2008		2007
YIELDS (fully tax equivalent)
Loans		5.74%		5.94%		6.30%		6.93%		7.65%
Securities		4.70%		4.75%		4.60%		4.84%		4.87%
Federal funds sold		1.59%		2.12%		1.85%		3.32%		4.23%
Yield on earning assets		5.67%		5.86%		6.17%		6.77%		7.42%
Interest bearing deposits		2.47%		2.72%		2.78%		3.46%		4.10%
Subordinated debt		6.04%		5.63%		5.66%		6.71%		7.24%
Borrowed funds		2.67%		2.98%		3.44%		3.82%		4.54%
Cost of paying liabilities		2.62%		2.85%		2.97%		3.62%		4.26%
Net interest spread		3.05%		3.01%		3.20%		3.15%		3.16%
Net interest rate margin		3.37%		3.34%		3.56%		3.63%		3.80%
WEALTH MANAGEMENT
Trust Assets under management	$	790,646	$	930,100	$	986,717	$	1,046,390	$	1,098,110
Trust Assets under administration		1,220,733		1,453,476		1,532,559		1,633,195		1,696,303

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