ENTERPRISE FINANCIAL SERVICES CORP SEC 10-Q Report

Enterprise Financial Services Corp, a leading provider of financial services, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's financial performance and operational activities, showcasing both growth and challenges faced during the period.

Financial Highlights

• Total Interest Income: $225.4 million, increased from $218.9 million in the linked quarter and $216.3 million in the prior year period, driven by higher average balances in the loan and securities portfolios.
• Net Interest Income: $158.3 million, up from $152.8 million in the linked quarter and $143.5 million in the prior year period, primarily due to higher average loan and securities balances and yields.
• Net Income: $45.2 million, decreased from $51.4 million in the linked quarter and $50.6 million in the prior year period, impacted by higher income tax expense.
• Net Income Available to Common Stockholders: $44.3 million, down from $50.4 million in the linked quarter and $49.6 million in the prior year period.
• Basic Earnings Per Common Share: $1.20, compared to $1.36 in the linked quarter and $1.33 in the prior year period.
• Diluted EPS: $1.19, compared to $1.36 in the linked quarter and $1.32 in the prior year period.
• Total Noninterest Income: $48.6 million, significantly increased from $20.6 million in the linked quarter and $21.4 million in the prior year period, primarily due to $32.1 million in anticipated insurance proceeds.
• Total Noninterest Expense: $109.8 million, up from $105.7 million in the linked quarter and $98.0 million in the prior year period, driven by higher deposit costs and legal expenses.
• Provision for Credit Losses: $8.4 million, increased from $3.5 million in the linked quarter and $4.1 million in the prior year period, reflecting net charge-offs and increased nonperforming loans.

Business Highlights

• Revenue Segments: The company reported a significant increase in noninterest income, primarily driven by $32.1 million in anticipated insurance proceeds related to a tax credit recapture event. Additionally, there was a $1.6 million increase in tax credit income, a $2.7 million increase in BOLI income, and a $2.8 million increase in gain on SBA loan sales.
• Geographical Performance: The company experienced challenges in Southern California, where seven commercial real estate loans totaling $68.4 million were affected by litigation and bankruptcy proceedings. Despite these challenges, the company expects to collect the full balance of these loans due to strong collateral positions.
• Sales Units: The company sold $78.0 million of the guaranteed portion of SBA 7(a) loans during the nine months ended September 30, 2025, compared to $23.1 million in the same period in 2024, reflecting a strategic focus on opportunistic sales.
• New Production Launches: The company completed a branch acquisition that closed on October 10, 2025, which is expected to enhance its operational footprint.
• Future Outlook: Management anticipates continued growth in average loan and securities balances, with a focus on maintaining strong asset quality and capital ratios. The company is also preparing for potential economic fluctuations and is committed to proactive credit management and strategic deposit pricing adjustments.

SEC Filing: ENTERPRISE FINANCIAL SERVICES CORP [ EFSC ] - 10-Q - Oct. 31, 2025