EFSC

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Enterprise Financial Services (NASDAQ:EFSC) and its peers. Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges. The 94 regional banks stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results. Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ:EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states. Enterprise Financial Services reported revenues of $187.4 million, up 6.4% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates and tangible book value per share in line with analysts’ estimates. The market seems disappointed with the results as the stock is down 3.1% since reporting and currently trades at $63.64. Read our full report on Enterprise Financial Services here, it’s free. Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE:OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands. OFG Bancorp reported revenues of $190.3 million, up 4.4% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates. The market seems happy with the results as the stock is up 5.4% since reporting. It currently trades at $52.71. Is now the time to buy OFG Bancorp? Access our full analysis of the earnings results here, it’s free. Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE:BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals. Banc of California reported revenues of $285.7 million, up 4.7% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ net interest income estimates. As expected, the stock is down 11% since the results and currently trades at $18.85. Read our full analysis of Banc of California’s results here. Founded in 2005 with a focus on serving underserved mid-sized businesses, ServisFirst Bancshares (NYSE:SFBS) is a bank holding company that provides commercial banking services to businesses and professionals through its subsidiary ServisFirst Bank. ServisFirst Bancshares reported revenues of $168.5 million, up 20.9% year on year. This print met analysts’ expectations. Aside from that, it was a slower quarter as it produced EPS in line with analysts’ estimates and a slight miss of analysts’ net interest income estimates. The stock is down 1.1% since reporting and currently trades at $42.32. Read our full, actionable report on ServisFirst Bancshares here, it’s free. Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ:PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses. Peoples Bancorp reported revenues of $122 million, up 6% year on year. This number beat analysts’ expectations by 1.7%. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ tangible book value per share estimates. The stock is flat since reporting and currently trades at $39.49. Read our full, actionable report on Peoples Bancorp here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net interest margin expanded 30 basis points to 3.58%, fueled by favorable repricing dynamics on both sides of the balance sheet and new loan production at 7.16%. Core deposit growth of $128 million enabled a $44 million reduction in wholesale funding, continuing a long-term strategy to strengthen the funding base and reduce reliance on brokered balances. Loan growth of 3.2% sequentially was driven by originations outpacing portfolio runoff, specifically through deepening existing relationships in healthcare, investor CRE, and C&I sectors. The SBA division has become a key revenue diversifier, contributing $2.4 million in gain on sale income this quarter and $4.8 million year-to-date, a significant increase over the prior year. Operating leverage improved as evidenced by a 47.5% efficiency ratio, supported by lower seasonal compensation costs and increased net interest income. Credit quality showed continued improvement with nonperforming loans decreasing by $3.2 million and reserve coverage strengthening to approximately 193%. Management increased full-year loan growth guidance to 5% to 7% and raised the net interest income outlook to a range of $115 million to $117 million based on first-half momentum. The balance sheet is transitioning toward a rate-neutral position, with floating-rate loans now comprising 43% of the portfolio compared to 23% at the end of 2024. Full-year noninterest expense guidance was raised to $65 million to $67 million to reflect targeted investments in talent and performance-based incentive compensation. Net interest margin is expected to expand further into the third quarter as the remaining higher-cost time deposits reprice, though this benefit is expected to moderate by the fourth quarter. Management intends to maintain a controlled pace of SBA production for risk management purposes, focusing on steady growth rather than aggressive volume targets. Brokered deposit balances have been reduced by $520 million, or approximately 51%, since their peak at the end of 2022 as part of a deliberate shift toward core funding. The bank is maintaining a high capital position with a total capital ratio of 12.7%, prioritizing the growth of tangible book value per share which reached $40.25. Management noted that while the senior housing market faces increased competition, Bankwell's focus on specific states with strong cash flows and labor stability mitigates operational risks. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth was driven by adjusting runoff assumptions and originating more loans to fill the gap, primarily through existing relationships rather than new customer acquisition. Management emphasized that managing flows is 'more art than science,' allowing them to prime the pump with pricing when prepayments are anticipated. The increased expense guide is directly correlated with higher revenue and performance-based compensation; management expects no negative impact on the efficiency ratio. The efficiency ratio is projected to remain between 50% and 52.8%, representing an improvement over previous best-case scenarios. While more banks are re-entering the market as headwinds like labor costs stabilize, Bankwell avoids price competition by focusing on execution and existing client loyalty. The bank remains selective about geography, focusing on states where operators demonstrate strong revenue growth and controlled expenses.

Interested in Enterprise Financial Services Corporation? Here are five stocks we like better. Enterprise Financial Services reported lower Q2 earnings, with EPS of $1.09 versus $1.30 in Q1, as a larger-than-expected provision expense and about $14 million in charge-offs weighed on results. Despite the earnings hit, net interest income rose to $169 million and net interest margin expanded to 4.30%, supported by loan growth, higher yields and a portfolio repositioning that should add about $3.5 million in annual net interest income. Loan growth and capital remained solid: loans increased $200 million, deposits were flat with improved mix, and the company continued returning capital through buybacks, a dividend increase and a newly approved share repurchase authorization. Enterprise Financial Services (NASDAQ:EFSC) reported lower second-quarter earnings as higher credit costs offset stable core operating performance, while management said loan growth, net interest income and capital levels remained solid. President and CEO Jim Lally said the company earned $41 million, or $1.09 per diluted share, in the second quarter of 2026. That compared with $1.30 per diluted share in the first quarter of 2026 and $1.36 per diluted share in the second quarter of 2025. The results produced a return on average assets of 0.95% and a pre-provision return on average assets of 1.58%. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? “While our core operating performance remained stable, a larger-than-expected provision expense impacted the operating results for the period,” Lally said. Lally said net interest income increased $2.6 million to $169 million, while net interest margin expanded two basis points from the linked quarter to 4.30%. He attributed the improvement to higher loan and investment balances, higher rates and stable deposit costs. → 3 Photonics Companies Making Quantum Tech Possible Chief Financial Officer and Chief Operating Officer Keene Turner said net interest income increased $3 million from the first quarter, largely due to higher earning asset yields and an additional day in the period. Interest income rose $4 million, including $3 million from loans and $2 million from investment securities, partially offset by lower earnings on cash balances. Interest expense increased $2 million, reflecting higher deposit interest expense, short-term borrowings and the company’s second-quarter subordinated debt issuance. Turner said the company expects net interest margin to remain in the “mid to upper 4.20s” in the current interest rate environment. He said the second-quarter margin included some benefit from prepayment activity and that a “pretty good proxy” for the margin exiting the quarter was about 4.27% to 4.28%. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off During the quarter, the company repositioned part of its securities portfolio, selling $180 million of investments with tax-equivalent yields in the low 3% range and reinvesting the proceeds into securities with tax-equivalent yields in the low 5% range. Lally said the transaction is expected to add $3.5 million in annual net interest income. Turner said the company realized a net loss of $6 million on the trade, which was mostly offset by $4.4 million in gains from the sale of Visa Class B common stock and a small parcel of land. Credit quality was the central pressure point in the quarter. Lally said the company recorded approximately $14 million in charge-offs late in the period tied to two commercial accounts. The first was a Texas-based commercial and industrial relationship that “failed on the integration of an expansion strategy” and had to be liquidated, Lally said. The second was an entity in the company’s sponsored finance group whose healthcare consulting business was disrupted after the Centers for Medicare and Medicaid announced a six-month moratorium on all new hospices and home health agencies. Lally said the company had been generating positive cash flow and was current on all debt through the first quarter, but “things obviously deteriorated quickly” and the business ceased operations in early June. He said year-to-date net charge-offs stood at 31 basis points annualized and that management expects better results in the second half. Turner said second-quarter net charge-offs totaled $13.6 million, up from $4.4 million in the linked quarter. Net charge-offs were 46 basis points of average loans, compared with 15 basis points in the first quarter. The provision for credit losses was $14.2 million, compared with $7.2 million in the prior quarter, mainly due to net charge-offs and loan growth. Chief Banking Officer Doug Bauche said during the question-and-answer session that management expects charge-offs to normalize back toward the company’s 10-year historical norm of about 15 basis points. He said non-performing loans totaled $76 million, or 64 basis points, at quarter-end, and management believes that figure will normalize closer to 45 basis points over time. Bauche also said the company reviewed other healthcare-related exposure following the CMS action. He said about $150 million of the nearly $12 billion portfolio involves payment through a Medicaid or Medicare process, but those loans are performing and diversified across the company’s footprint. Lally added that the moratorium was specific to new applicants for Medicare licensing and did not affect already licensed providers. Loan balances increased by $200 million in the quarter, which Lally said was in line with expectations. Bauche said organic loan growth was driven by investor-owned commercial real estate and the commercial and industrial portfolio, including specialty lending niches such as life insurance premium finance, tax credit, sponsor finance and SBA lending. Gross loan originations were up 32% from the prior-year quarter and 48% from the linked quarter, Bauche said. Commercial real estate growth was balanced across Kansas City, Phoenix, Dallas, Southern Nevada and Southern California, with new funded projects largely focused on pre-leased and stabilized industrial and retail properties. Bauche cited examples of traditional C&I originations, including financing for a food distribution company in Arizona, a Kansas City manufacturer of made-to-order stainless steel HVAC systems and a Southern California manufacturer of truck and van body equipment used in utility, emergency and construction industries. Within specialty lending, Bauche said SBA 7 owner-occupied real estate originations remained stable, with 32 new loans totaling $59 million. He said the company again ranked in the top 25 SBA originators in the country. Life insurance premium finance also remained a source of growth, with $42 million in quarterly net growth and 8% growth over the trailing 12 months. Lally said the company remains focused on achieving mid-single-digit loan growth for the year. In response to analyst questions, he said growth prospects remain diversified across the company, including the Midwest, Arizona, San Diego, Nevada and life insurance premium finance. Total deposits were flat for the quarter, but Lally said the mix improved as non-interest-bearing demand deposits increased modestly to 34% of total deposits. Overall deposit costs remained flat at 1.53%. Bauche said core deposits increased $1.2 billion year over year, including deposits acquired in the First Interstate branch acquisition in the fourth quarter of 2025. He said traditional deposit outflows in the first half of the year are normal, with growth from geographic markets typically occurring late in the third quarter and into the fourth quarter. Specialty deposits increased $62 million in the quarter. Bauche said property management deposits represented 42% of specialty deposits and 12% of total bank deposits, while community association deposits represented 39% of specialty deposits and 11% of total bank deposits. With an 82% loan-to-deposit ratio, Bauche said the company continues to use disciplined pricing strategies to manage its blended deposit costs and protect net interest margin. Lally said capital remained “stable and strong” at quarter-end, with total stockholders’ equity of $2 billion and a tangible common equity to tangible assets ratio of 9.04%. Tangible book value per share increased to $42.30. Turner said the company issued $175 million of 6.25% fixed-to-floating rate subordinated notes during the quarter, repurchased 382,000 shares for approximately $23 million and increased its quarterly dividend by $0.01 to $0.35 per share for the third quarter of 2026. For the first half of the year, Turner said Enterprise returned about $75 million to shareholders through common stock repurchases and dividends. At quarter-end, the company had 249,000 shares remaining under its repurchase plan, and in July the board approved an additional 2 million shares. Turner said the company’s operating results produced a 1% return on average assets and a 10% return on average tangible common equity. “While these results are below our expectations, our core business remains sound, and we expect to return to the level of profitability that is more in line with our standards,” he said. Enterprise Financial Services Corp. (NASDAQ: EFSC) is a bank holding company headquartered in Clayton, Missouri, operating through its primary subsidiary, Enterprise Bank & Trust. The company provides a comprehensive range of banking and financial services to individuals, small- and mid-sized businesses, and institutional clients. Its capabilities encompass deposit products, lending solutions, mortgage banking, and treasury management, supported by a full suite of digital banking tools and personalized client service. In its commercial banking segment, Enterprise Bank & Trust offers lines of credit, equipment financing, commercial real estate loans, construction lending and agriculture lending. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Enterprise Financial Services Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Income: $41 million for the quarter. Earnings Per Share (EPS): $1.09 per diluted share. Net Interest Income: Increased by $2.6 million to $169 million. Net Interest Margin: Expanded by 2 basis points to 4.30%. Return on Average Assets (ROAA): 95 basis points. Pre-Provision ROAA: 1.58%. Tangible Common Equity to Tangible Assets Ratio: 9.04%. Tangible Book Value Per Share: Increased to $42.30. Loan Growth: $200 million increase in loan balances. Provision for Credit Losses: $14.2 million, up from $7.2 million in the previous quarter. Net Charge-Offs: $13.6 million for the quarter. Non-Interest Income: $13.5 million, a decrease of $5.6 million from the previous quarter. Non-Interest Expense: $116 million, relatively flat compared to the previous quarter. Core Efficiency Ratio: 61.1% for the quarter. Share Repurchase: 382,000 shares repurchased for approximately $23 million. Dividend: Increased by $0.01 to $0.35 per share for the third quarter of 2026. Warning! GuruFocus has detected 5 Warning Sign with EFSC. Is EFSC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Enterprise Financial Services Corp (NASDAQ:EFSC) reported net interest income expansion by $2.6 million to $169 million, with a net interest margin increase of 2 basis points to 4.30%. The company successfully repositioned its securities portfolio, resulting in an additional $3.5 million in net interest income annually. Loan balances grew by $200 million during the quarter, with strong growth in the investor-owned CRE secured portfolio and C&I book. EFSC's diversified deposit base remains a key strength, with core deposits up $1.2 billion year-over-year. The tangible book value per share increased to $42.30, reflecting a stable and strong capital position. EFSC experienced a larger-than-expected provision expense due to approximately $14 million in charge-offs related to two commercial accounts. Non-performing assets increased, with $160 million in non-performing assets, primarily secured by real estate. The provision for credit losses increased to $14.2 million, driven by net charge-offs and loan growth. Non-interest income decreased by $5.6 million compared to the linked-quarter, primarily due to a net loss on investment portfolio restructuring. The core efficiency ratio increased to 61.1% from 60.2% in the linked-quarter, indicating higher operational costs. Q: Can you provide more details on the expected decline in charge-off activity for the rest of the year? A: Douglas Bauche, Senior Executive Vice President and Chief Banking Officer, explained that non-performing assets total $160 million, with $84 million in other real estate owned (OREO). The remaining $76 million in non-performing loans is expected to normalize to 45 basis points over time. Charge-offs are anticipated to return to the historical norm of 15 basis points, given the quality of the portfolio. Q: Are there any other parts of the portfolio that might be impacted by the Medicare change that led to a significant charge-off? A: James Lally, President and CEO, stated that about $150 million of the portfolio involves Medicaid and Medicare payments, but these loans are performing well. Douglas Bauche added that the moratorium affected only new Medicare licensing applicants, not existing ones, and the impacted credit was unique as it was a consulting business. Q: Can you clarify the outlook for net interest margin and the impact of recent restructuring? A: Keene Turner, CFO and COO, indicated that the net interest margin is expected to remain stable in the mid to upper 420s. The restructuring added 10 basis points to the portfolio yield, and while there may be slight pressure from funding costs, strong loan growth could further strengthen the margin. Q: What is the status of the OREO properties and the impact of the appeal on their sale? A: James Lally explained that an appeal on one property is delaying the sale of four contracted properties. Douglas Bauche noted that there is high interest in the remaining properties, but contracts cannot be finalized until the appeal is resolved. They remain confident in a satisfactory resolution. Q: What are the expectations for fee income and tax credit contributions in the second half of the year? A: Keene Turner mentioned that the first quarter is a better indicator of recurring fee income. They expect the tax credit line to at least break even for the year and plan to resume selling SBA loans, which should improve non-interest income. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second Quarter Results Net income of $40.9 million, or $1.09 per diluted common share, compared to $1.30 for the linked quarter and $1.36 for the prior year quarter Net interest margin ("NIM") of 4.30%, quarterly increase of two basis points Net interest income of $168.7 million, quarterly increase of $2.6 million Total loans of $11.9 billion, quarterly increase of $199.6 million Total deposits of $14.5 billion, quarterly decrease of $21.8 million Return on average assets ("ROAA") of 0.95%, compared to 1.16% for the linked quarter and 1.30% for the prior year quarter Return on average tangible common equity ("ROATCE")1 of 10.39%, compared to 12.53% for the linked quarter and 13.84% for the prior year quarter Tangible common equity to tangible assets1 of 9.04%, compared to 9.01% in the linked quarter and 9.42% in the prior year quarter Tangible book value per common share1 of $42.30, compared to $41.38 for the linked quarter and an increase of 6% from the prior year quarter Issued $175 million of 6.25% fixed-to-floating rate subordinated notes due in 2036. The notes are callable beginning in 2031 and are included in tier 2 capital Returned $22.9 million to stockholders through the repurchase of 382,083 shares and $12.3 million through common stock dividends Increased quarterly dividend $0.01 to $0.35 per common share for the third quarter 2026 ST. LOUIS, July 22, 2026--(BUSINESS WIRE)--Enterprise Financial Services Corp (Nasdaq: EFSC) (the "Company" or "EFSC") today announced financial results for the second quarter of 2026. "Our strategic initiatives this quarter focused on driving sustainable profitability and capital efficiency. Through a targeted restructuring of our investment portfolio, we successfully enhanced our revenue profile and expanded margin. Simultaneously, we bolstered our regulatory capital base through the issuance of $175 million of subordinated debentures. While late-quarter challenges with two commercial credits led to higher charge-offs and provision expense, our core portfolio trends are relatively stable and our underwriting standards remain high," said Jim Lally, President and Chief Executive Officer. "Looking toward the second half of 2026, we are committed to improving asset quality, securing disciplined loan and deposit growth and leveraging technology to boost operational efficiency." Comparisons to the prior year quarter are affected by the acquisition of 12 branches in Arizona and Kansas in the fourth quarter 2025 (the "Branch Acquisition"). Highlights Earnings - Net income in the second quarter 2026 was $40.9 million, a decrease of $8.4 million and $10.5 million compared to the linked and prior year quarters, respectively. Earnings per diluted common share for the second quarter 2026 was $1.09, compared to $1.30 and $1.36 for the linked and prior year quarters, respectively. Adjusted diluted earnings per share2 was $1.13 in the second quarter 2026, compared to $1.31 and $1.37 in the linked and prior year quarters, respectively. Pre-provision net revenue ("PPNR")2 - PPNR of $68.2 million in the second quarter 2026 decreased $2.2 million from the linked quarter and increased $0.1 million from the prior year quarter. The decrease from the linked quarter was primarily due to a decrease in noninterest income. Net interest income and NIM - Net interest income of $168.7 million for the second quarter 2026 increased $2.6 million and $16.0 million from the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income benefitted from higher loan and securities yields, as well as an additional day during the period. Compared to the prior year quarter, net interest income increased primarily due to higher average loan and investment balances, higher investment yields, and a decrease on rates paid on interest-bearing liabilities. NIM was 4.30% for the second quarter 2026, compared to 4.28% and 4.21% for the linked and prior year quarters, respectively. The total cost of deposits of 1.53% for the second quarter 2026 increased one basis point and decreased 29 basis points from the linked and prior year quarters, respectively. Noninterest income - Noninterest income of $13.5 million for the second quarter 2026 decreased $5.6 million and $7.1 million from the linked and prior year quarters, respectively. The decrease in noninterest income from the linked and prior year quarters was primarily due to a net loss on sales of investment securities and a decrease in tax credit income. During the quarter, the Company executed balance sheet transactions to optimize future earnings. This included the sale of approximately $179 million of securities with a tax-equivalent yield of 3.13% and the reinvestment of the proceeds into new securities with a tax-equivalent yield of 5.20%. The Company also sold Visa Class B-1 common stock along with a parcel of land. A net loss of $1.5 million was recognized on these transactions. Tax credit income declined due to an increase in interest rates that negatively impacted the value of projects carried at fair value. Noninterest expense - Noninterest expense of $115.7 million for the second quarter 2026 increased $0.6 million and $10.0 million from the linked and prior year quarters, respectively. The increase from the prior year quarter was primarily driven by higher employee compensation cost, variable deposit costs and loan and legal expenses related to loan workouts and other real estate owned ("OREO"). Loans - Loans totaled $11.9 billion at June 30, 2026, an increase of $199.6 million and $483.6 million from the linked and prior year quarters, respectively. Average loans totaled $11.8 billion for the current and linked quarters, respectively, and $11.4 billion for the prior year quarter. Asset quality - The allowance for credit losses to total loans was 1.17% at June 30, 2026, compared to 1.21% at March 31, 2026 and 1.27% at June 30, 2025. The provision for credit losses in the second quarter 2026 was $14.2 million, compared to $7.2 million and $3.5 million for the linked and prior year quarters, respectively. The ratio of nonperforming assets to total assets was 0.92% at June 30, 2026, compared to 0.87% and 0.71% at March 31, 2026 and June 30, 2025, respectively. Deposits - Deposits totaled $14.5 billion at June 30, 2026, a decrease of $21.8 million and an increase of $1.2 billion from the linked and prior year quarters, respectively. Average deposits were $14.6 billion for the current and linked quarters, respectively, and $13.2 billion for the prior year quarter. At June 30, 2026, noninterest-bearing deposit accounts totaled $4.9 billion, or 34% of total deposits, and the loan to deposit ratio was 82%. Subordinated notes - In the second quarter 2026, the Company issued $175.0 million of 6.25% fixed-to-floating rate subordinated notes due in 2036 for general corporate purposes and to bolster capital. The notes are callable starting in July 2031 and are included in tier 2 capital. Capital - Total stockholders’ equity was $2.0 billion and the tangible common equity to tangible assets ratio3 was 9.04% at June 30, 2026, compared to 9.01% at March 31, 2026. Enterprise Bank & Trust remains "well-capitalized," with a common equity tier 1 ratio of 12.1% and a total risk-based capital ratio of 13.1% at June 30, 2026. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.5% and 15.0%, respectively, at June 30, 2026.The Company’s Board of Directors (the "Board") approved a quarterly dividend of $0.35 per common share, payable on September 30, 2026 to stockholders of record as of September 15, 2026. The Board also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) June 15, 2026 to (but excluding) September 15, 2026. The dividend will be payable on September 15, 2026 to stockholders of record of Series A Preferred Stock as of August 31, 2026. Net Interest Income and NIM Average Balance Sheets The following table presents, for the periods indicated, certain information related to the average interest-earning assets and interest-bearing liabilities, as well as the corresponding average interest rates earned and paid, all on a tax-equivalent basis. Net interest income of $168.7 million for the second quarter 2026 increased $2.6 million and $16.0 million from the linked and prior year quarters, respectively. Net interest income on a tax-equivalent basis was $172.1 million, $169.5 million and $155.5 million for the current, linked and prior year quarters, respectively. The increase from the linked quarter reflects higher loan and securities yields, and the current quarter benefitted by one additional day compared to the linked quarter. These increases were partially offset by an increase in the average balance of interest-bearing liabilities. Compared to the prior year quarter, the increase in net interest income was primarily due to growth in the average balance of interest-earning assets and lower rates paid on interest-bearing liabilities, specifically securities under agreements to repurchase and money market accounts. During the current quarter, the Company issued $175.0 million aggregate principal amount of 6.25% fixed-to-floating rate subordinated notes with a maturity date of July 1, 2036, which initially bear an annual interest rate of 6.25%, with interest payable semiannually. Beginning July 1, 2031, the interest rate resets quarterly to the three-month term SOFR rate plus a spread of 232.0 basis points, payable quarterly. The Company also sold approximately $179 million of investment securities with a tax-equivalent yield of 3.13% and reinvested the proceeds into new securities with a tax-equivalent yield of 5.20%. This transaction improved the overall tax-equivalent yield on securities by 10 basis points and will increase net interest income by $3.5 million annually. Interest income for the second quarter 2026 increased $4.2 million and $10.3 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to a five and eight basis point increase in loans and securities yields, respectively, as well as a $51.2 million increase in average investment securities balances and one additional day during the period. Compared to the prior year quarter, the increase in interest income was primarily due to an increase of $417.7 million and $685.0 million in average loan and investment securities balances, respectively. The average interest rate of new loan originations in the second quarter 2026 was 6.58%, and investment purchases in the second quarter 2026 had a weighted average, tax-equivalent yield of 5.03%. Interest expense in the second quarter 2026 increased $1.7 million and decreased $5.6 million from the linked and prior year quarters, respectively. Compared to the linked quarter, the increase was primarily due to higher average subordinated debt and other borrowed funds balances. Compared to the prior year quarter, the decrease was primarily due to decreased interest paid on interest-bearing liabilities. The rate paid on interest-bearing liabilities was 2.39% during the second quarter 2026, compared to 2.81% in the prior year quarter. NIM, on a tax-equivalent basis, was 4.30% in the second quarter 2026, an increase of two basis points and nine basis points from the linked and prior year quarters, respectively. For the month of June 2026, the loan portfolio yield was 6.50% and the cost of total deposits was 1.52%. Investments Investment securities totaled $3.8 billion at June 30, 2026, an increase of $3.0 million from the linked quarter. The tangible common equity to tangible assets ratio adjusted for unrealized losses on HTM securities4 was 8.87% at June 30, 2026, compared to 8.78% at March 31, 2026. Loans The following table presents total loans for the most recent five quarters: Loans totaled $11.9 billion at June 30, 2026, an increase of $199.6 million compared to the linked quarter. The increase was primarily driven by the $118.9 million increase in specialty lending categories and $109.2 million increase in commercial real estate loans. Loan production outpaced repayment activity in the quarter with loan volume of $1.0 billion compared to repayment activity of $814.2 million. Loan volume was strongest in the C&I and CRE portfolios in the current quarter. Average line utilization was approximately 47% for the current quarter, compared to 45% and 46% for the linked and prior year quarters, respectively. Asset Quality The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters: The following table presents a summary of nonperforming assets by loan category as of June 30, 2026: Nonperforming assets increased $11.0 million and $46.4 million from the linked and prior year quarters, respectively. The increase in nonperforming assets compared to the linked quarter is primarily due to a $16.0 million CRE relationship and a $5.8 million C&I relationship that went on nonaccrual, partially offset by a $4.2 million C&I relationship that became current during the period. The provision for credit losses totaled $14.2 million in the second quarter 2026, compared to $7.2 million and $3.5 million in the linked and prior year quarters, respectively. The second quarter 2026 provision for credit losses was driven mainly by $13.6 million in net charge-offs. Most of these losses came from two accounts: an $8.3 million C&I relationship in Texas and a $5.2 million Sponsor Finance relationship. Annualized net charge-offs totaled 46 basis points of average loans in the current quarter, compared to 15 basis points in the linked quarter and two basis points of average loans in the prior year quarter. Deposits The following table presents deposits broken out by type for the most recent five quarters: Total deposits at June 30, 2026 were $14.5 billion, a decrease of $21.8 million and an increase of $1.2 billion from the linked and prior year quarters, respectively. Average deposits for the three months ended June 30, 2026 and March 31, 2026 were $14.6 billion, compared to $13.2 billion for the three months ended June 30, 2025. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.2 billion and $1.3 billion at June 30, 2026 and March 31, 2026, respectively. Noninterest Income The following table presents a comparative summary of the major components of noninterest income for the periods indicated: Total noninterest income was $13.5 million for the second quarter 2026, a decrease of $5.6 million and $7.1 million from the linked and prior year quarters, respectively. The decrease from the linked and prior year quarters was primarily due to lower tax credit income and other income, which is discussed further below. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes. Changes in the interest rate environment had a negative impact on tax credit projects carried at fair value. The following table presents a comparative summary of the major components of other income for the periods indicated: The decrease in other income from the linked and prior year quarters was primarily due to a $2.1 million net loss on sales of investment securities in the current quarter and a gain on the sale of guaranteed SBA loans during the linked and prior year quarters that did not reoccur, partially offset by a $0.7 million gain on sales of fixed assets. During the period, the Company sold investment securities with a tax-equivalent yield of 3.13% and reinvested the proceeds into securities with a tax-equivalent yield of approximately 5.20%. A pre-tax loss of approximately $6 million on the sale of these securities was partially offset by a pre-tax gain of approximately $4 million from the sale of Visa Class B-1 common stock. Noninterest Expense The following table presents a comparative summary of the major components of noninterest expense for the periods indicated: Noninterest expense increased $0.6 million and $10.0 million from the linked and prior year quarters, respectively. Deposit costs relate to certain businesses in the deposit verticals that receive an earnings credit allowance for deposit-related services provided to us. These earnings credit allowances are impacted by, among other things, interest rates and average balances. Deposit costs increased $1.8 million from the linked quarter primarily due to the expiration of certain unused allowances that reduced expense in the first quarter. Employee compensation and benefits decreased $2.6 million from the linked quarter primarily due to employer payroll taxes that are seasonally higher in the first quarter each year. The increase in noninterest expense from the prior year quarter was primarily due to an increase in the associate base as a result of the Branch Acquisition, merit increases throughout 2025 and 2026, an increase of $3.1 million in deposit costs due to higher earnings credit allowances and deposit vertical average balances, and an increase of $0.6 million in loan and legal expenses due to loan workouts and the foreclosure of certain properties. For the second quarter 2026, the core efficiency ratio5 was 61.1%, compared to 60.2% for the linked quarter and 59.3% for the prior year quarter. Income Taxes The effective tax rate for the current quarter was 21.7%, compared to 21.5% and 20.0% in the linked and prior year quarters, respectively. The increase in the effective tax rate from the prior year quarter was due to an increase in state taxes from apportionment factors and a decrease in tax credit investments. Capital The following table presents total equity and various capital ratios for the most recent five quarters: Total equity was $2.0 billion at June 30, 2026, an increase of $18.6 million and $117.9 million from the linked and prior year quarters, respectively. Tangible book value per common share5 was $42.30 at June 30, 2026, compared to $41.38 and $40.02 at March 31, 2026 and June 30, 2025, respectively. The Company repurchased 382,083 shares at an average price of $59.93 in the second quarter 2026, and has 249,400 shares remaining in the current plan that was previously approved in May 2022. On July 20, 2026, the Company’s Board of Directors approved adding an additional 2,000,000 shares to the Company’s stock repurchase plan. The issuance of subordinated debt during the current quarter enhanced total risk-based capital. The Company’s regulatory capital ratios continue to exceed the "well-capitalized" regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review. Use of Non-GAAP Financial Measures The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States ("GAAP") and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, return on average common equity, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA, and adjusted diluted earnings per share, in this release 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 GAAP. The Company considers its tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, return on average common equity, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA and adjusted diluted earnings per share, collectively "core performance measures," presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as the FDIC special assessment, acquisition costs, accrued insurance proceeds anticipated to be received as a result of recaptured tax credits, the net gain or loss on sales of fixed assets, the net gain or loss on OREO and the net gain or loss on sales of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity to tangible assets ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject. The Company believes these non-GAAP measures and ratios, when taken together with the corresponding 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 operating results and related trends and when 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 GAAP. In the attached tables, 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 measures for the periods indicated. Conference Call and Webcast Information The Company will host a conference call and webcast at 10:00 a.m. Central Time on Thursday, July 23, 2026. During the call, management will review the second quarter 2026 results and related matters. This press release as well as a related slide presentation will be accessible via the "Investor Relations" page of the Company’s website, https://investor.enterprisebank.com/events-and-presentations, prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-833-461-5787. After connecting, you may say the name of the conference or enter the Conference ID 122714948. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC2Q2026EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call. About Enterprise Financial Services Corp Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $17.4 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com. Enterprise Financial Services Corp’s common stock is traded on the Nasdaq Global Select Market under the symbol "EFSC." Please visit our website at www.enterprisebank.com to see our regularly posted material information. Forward-looking Statements Readers should note that, in addition to the historical information contained herein, this press release 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. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, stockholder value creation and the impact of acquisitions. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "pro forma", "pipeline" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, the Company’s ability to collect insurance proceeds from claims made related to tax recapture events, 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 and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), impacts of trade and tariff policies, U.S. fiscal debt, budget and tax matters (including the effect of a prolonged U.S. federal government shutdown), and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, changes in business prospects that could impact goodwill estimates and assumptions, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, natural disasters (including wildfires and earthquakes), terrorist activities, war and geopolitical matters (including in Israel, Iran and Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, or other health emergencies and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the "SEC"), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results. For any forward-looking statements made in this press release or in any documents, EFSC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, EFSC disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722486360/en/ Contacts For more information contact: Investor Relations Keene Turner, Senior Executive Vice President, CFO and COO (314) 512-7233Dakota Danescu, Senior Investor Relations Analyst (314) 810-3623 Media Steve Richardson, Senior Vice President, Corporate Communications (314) 995-5695

Enterprise Financial Services (EFSC) reported $182.19 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 5.1%. EPS of $1.13 for the same period compares to $1.37 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $188.23 million, representing a surprise of -3.2%. The company delivered an EPS surprise of -16.3%, with the consensus EPS estimate being $1.35. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Enterprise Financial Services performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Interest Margin: 4.3% versus the three-analyst average estimate of 4.2%. Net charge-offs to average loans: 0.5% compared to the 0.2% average estimate based on two analysts. Efficiency Ratio: 63.5% versus the two-analyst average estimate of 61.2%. Average Balance - Total interest earning assets: $16.04 billion versus the two-analyst average estimate of $16.1 billion. Total Noninterest Income: $13.48 million versus $19.84 million estimated by three analysts on average. Net interest income (FTE): $172.13 million compared to the $169.76 million average estimate based on two analysts. Net Interest Income: $168.72 million compared to the $168.47 million average estimate based on two analysts. Other income: $4.39 million versus the two-analyst average estimate of $6.1 million. Tax credit income: $-1.73 million versus $1.5 million estimated by two analysts on average. Deposit service charges: $5.48 million versus $5.64 million estimated by two analysts on average. Card services revenue: $2.55 million versus the two-analyst average estimate of $2.78 million. Wealth management income: $2.8 million versus $2.88 million estimated by two analysts on average. View all Key Company Metrics for Enterprise Financial Services here>>> Shares of Enterprise Financial Services have returned +3.2% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Financial Services Corporation (EFSC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Enterprise Financial Services (EFSC) came out with quarterly earnings of $1.13 per share, missing the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16.30%. A quarter ago, it was expected that this financial holding company would post earnings of $1.3 per share when it actually produced earnings of $1.31, delivering a surprise of +0.77%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Enterprise Financial Services, which belongs to the Zacks Banks - Midwest industry, posted revenues of $182.19 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.2%. This compares to year-ago revenues of $173.37 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Enterprise Financial Services shares have added about 23.6% since the beginning of the year versus the S&P 500's gain of 9.7%. While Enterprise Financial Services has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Enterprise Financial Services was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.42 on $191.35 million in revenues for the coming quarter and $5.57 on $760.6 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Civista Bancshares (CIVB), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 23. This bank holding company is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +1.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Civista Bancshares' revenues are expected to be $47.85 million, up 15.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Financial Services Corporation (EFSC) : Free Stock Analysis Report Civista Bancshares, Inc. (CIVB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Regional banking company Enterprise Financial Services (NASDAQ:EFSC) missed Wall Street’s revenue expectations in Q2 CY2026 as sales rose 3.5% year on year to $182.2 million. Its non-GAAP profit of $1.13 per share was 15.8% below analysts’ consensus estimates. Is now the time to buy Enterprise Financial Services? Find out in our full research report. Net Interest Income: $168.7 million vs analyst estimates of $168.6 million (10.4% year-on-year growth, in line) Net Interest Margin: 4.3% vs analyst estimates of 4.2% (5.4 basis point beat) Revenue: $182.2 million vs analyst estimates of $189.8 million (3.5% year-on-year growth, 4% miss) Efficiency Ratio: 63.5% vs analyst estimates of 61.2% (227.6 basis point miss) Adjusted EPS: $1.13 vs analyst expectations of $1.34 (15.8% miss) Tangible Book Value per Share: $42.30 vs analyst estimates of $42.34 (5.7% year-on-year growth, in line) Market Capitalization: $2.40 billion Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ:EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states. Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Over the last five years, Enterprise Financial Services grew its revenue at an impressive 15.3% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Enterprise Financial Services’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 8.1% over the last two years was well below its five-year trend. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Enterprise Financial Services’s revenue grew by 3.5% year on year to $182.2 million, falling short of Wall Street’s estimates. Net interest income made up 87.7% of the company’s total revenue during the last five years, meaning Enterprise Financial Services barely relies on non-interest income to drive its overall growth. Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams. ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability. This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation. Enterprise Financial Services’s TBVPS grew at an exceptional 9.5% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 9.9% annually from $35.02 to $42.30 per share. Over the next 12 months, Consensus estimates call for Enterprise Financial Services’s TBVPS to grow by 10.4% to $46.69, mediocre growth rate. We struggled to find many positives in these results. Its revenue missed and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $65.69 immediately following the results. The latest quarter from Enterprise Financial Services’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.