Enterprise Financial Services Corp Reports Fourth Quarter and Full Year 2025 Results

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

return on average assets financial

Return on average assets (ROAA) measures how efficiently a company turns its assets into profit by comparing profit after expenses to the average value of its assets over a period (usually the average of beginning and ending assets). It matters to investors because it shows how well management uses the company’s resources to generate returns—think of it as how much profit a baker earns from the oven space they actually used over time.

return on average tangible common equity financial

A profitability ratio that shows how much profit common shareholders earn from the bank’s tangible equity — the shareholder capital left after removing goodwill, intangible assets and preferred stock — averaged over a period. Investors use it like a yield on the company’s real, hard capital to judge how efficiently management turns those tangible resources into earnings and to compare returns across banks or over time.

pre-provision net revenue financial

Pre-provision net revenue is a bank’s income from core operations — interest earned minus interest paid plus fees and other operating income, after operating costs — measured before setting aside funds for potential loan losses. Investors use it to gauge how well a bank’s everyday business generates money independent of one-time loss reserves, like judging a store’s sales and operating profit before accounting for an expected number of returned items.

core efficiency ratio financial

A core efficiency ratio measures how well a business turns its regular, ongoing revenue into profit after covering everyday operating costs, excluding one-time gains or losses. Think of it like the fuel efficiency of a car: it shows how much “mileage” (profit) the company gets from its steady sources of income, so investors can judge cost control and the sustainability of earnings without being misled by temporary items.

nonperforming assets financial

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

loan-to-deposit ratio financial

Loan-to-deposit ratio measures how much a bank has lent out compared with the money customers have deposited, expressed as a percentage. Think of it like the share of a household’s savings that has been loaned to others: a higher ratio can boost earnings but reduce cash on hand and increase risk, while a lower ratio means more liquidity but potentially lower returns—key for investors assessing a bank’s balance of profit and safety.

non-GAAP financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

Fourth Quarter Results

• Net income of $54.8 million, or $1.45 per diluted common share, compared to $1.19 in the linked quarter and $1.28 in the prior year quarter
• Net interest margin (“NIM”) of 4.26%, quarterly increase of 3 basis points
• Net interest income of $168.2 million, quarterly increase of $9.9 million
• Total loans of $11.8 billion, quarterly increase of $217.2 million
• Total deposits of $14.6 billion, quarterly increase of $1.0 billion
• Return on average assets (“ROAA”) of 1.27%, compared to 1.11% in the linked quarter and 1.27% in the prior year quarter
• Return on average tangible common equity (“ROATCE”)¹ of 14.02%, compared to 11.56% in the linked quarter and 13.63% in the prior year quarter
• Repurchased 67,000 shares and increased quarterly dividend $0.01 to $0.33 per common share for the first quarter 2026
• Completed branch acquisition of 10 branches in Arizona and two branches in Kansas, adding $292.0 million in loans and $609.5 million in deposits

2025 Results

• Net income of $201.4 million, or $5.31 per diluted common share, compared to $4.83 in the prior year
• Net interest income of $626.7 million, an increase of $58.6 million compared to the prior year
• Total loans increased $580.0 million, or 5%
• Total deposits increased $1.5 billion, or 11%
• ROAA of 1.24%, compared to 1.25% in the prior year
• ROATCE¹ of 13.34%, compared to 13.58% in the prior year
• Tangible common equity to tangible assets¹ of 9.07%
• Tangible book value per common share¹ of $41.37, an increase of $4.10, or 11%, from the prior year
• Repurchased 258,739 shares and increased common dividends $0.16 to $1.22 for 2025

ST. LOUIS--(BUSINESS WIRE)-- Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), commented, “I am proud of how we ended 2025, which was another successful year for the Company. The completion of the branch acquisition in Arizona and Kansas during the quarter has enhanced our funding profile and strengthened our position in two important markets.”

Lally added, “We reported diluted earnings per share of $1.45 for the fourth quarter and $5.31 for the full year 2025. Our earnings resulted in a 1.27% ROAA and a 14.02% ROATCE¹ for the fourth quarter. For the full year, we had a 1.24% ROAA and a 13.34% ROATCE. We leveraged our capital position in the year to execute on the branch acquisition, increase our common stock dividends 15% and repurchase $14.1 million of common stock, while still increasing tangible book value by 11% in 2025. This represents the 14th consecutive year that we have increased our tangible book value per share, with an 11% compound annual growth rate during that period. Similarly, we have increased our common stock dividend for 11 consecutive years with a 17% compound annual growth rate.”

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1 ROATCE, tangible common equity to tangible assets, and tangible book value per common share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

“I am also pleased that we made significant progress at the end of the year in resolving the large nonperforming credit relationship that has been previously disclosed. As we had expected, we were able to foreclose on the majority of the properties without taking a net loss on the transactions. As we enter a new year, I am confident that we will continue to improve our asset quality metrics and that the investments we have made in our associates and technology, combined with our high customer service levels and a strong balance sheet, will drive financial and operational success in 2026.”

Full-Year Highlights

For 2025, net income was $201.4 million, or $5.31 per diluted share, compared to $185.3 million, or $4.83 per diluted share, in 2024. Pre-provision net revenue (“PPNR”)² for 2025 was $274.7 million, compared to $255.2 million in 2024. The increase in PPNR² in 2025 was primarily due to higher net interest income that benefited from an organic increase in average interest-earning asset balances and liquidity provided through the branch acquisition, and lower rates paid on interest-bearing liabilities. These increases were partially offset by an increase in noninterest expense due to the branch acquisition, merit increases, higher headcount and higher deposit costs from growth in the deposit verticals.

Net interest income of $626.7 million increased $58.6 million over the prior year. NIM increased to 4.21% in 2025, from 4.16% in 2024, primarily due to higher average loan and securities balances, as well as higher yields on the securities portfolio. Average loans and securities increased $472.6 million and $753.8 million, respectively, compared to 2024. While the decline in market interest rates reduced the yield on loans 28 basis points, the yield on securities increased 51 basis points. Net interest income in 2025 also benefited from lower short-term interest rates that decreased deposit interest expense. Since September 2024, the Federal Reserve has reduced the federal funds target rate 175 basis points. In response, the Company has proactively adjusted deposit pricing to partially mitigate the impact on income from the repricing of variable rate loans.

Noninterest income was $113.1 million, an increase of $43.4 million from $69.7 million in 2024. Noninterest income in 2025 includes $32.1 million of anticipated insurance proceeds from a pending claim related to a recapture event during the third quarter 2025 with respect to a $24.1 million solar tax credit. There is an offsetting amount of $32.1 million in income tax expense related to the solar tax credit recapture.

Noninterest expense was $429.8 million in 2025, a 12% increase from $385.0 million in 2024. The increase was primarily from higher deposit costs due to an increase in average deposit vertical balances, an increase in compensation due an expanded associate base and the onboarding of the associates from the branch acquisition, along with other expenses related to the branch acquisition. The increase was partially offset by a $4.9 million decline in core conversion expenses due to the completion of the core implementation in the fourth quarter 2024. The core efficiency ratio² was 59.3% in 2025, compared to 58.4% in 2024.

Nonperforming assets were 0.95% of total assets at the end of 2025, compared to 0.30% at the end of 2024. Net charge-offs were 0.21% of average loans in 2025, compared to 0.16% in 2024. The allowance for credit losses was 1.19% of total loans at the end of 2025, compared to 1.23% at the end of 2024. Excluding guaranteed portions of loans, the allowance to loans ratio² was 1.29% and 1.34% at the end of 2025 and 2024, respectively. The provision for credit losses was $26.3 million and $21.5 million in 2025 and 2024, respectively.

The Company maintained a strong liquidity position in 2025, with total deposits of $14.6 billion, a loan-to-deposit ratio of 80.8% and cash and investment securities of $4.5 billion as of December 31, 2025. This compares to total deposits of $13.1 billion, a loan-to-deposit ratio of 85.3% and cash and investment securities of $3.6 billion at the end of 2024. Noninterest-bearing deposits comprise 33.4% of total deposits at December 31, 2025, compared to 34.1% at the end of 2024. Excluding brokered certificates of deposits, core deposits as of December 31, 2025 totaled $13.9 billion, an increase of $1.2 billion from the prior year.

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2 PPNR, core efficiency ratio, and allowance to loans ratio excluding guaranteed loans are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

Total stockholders’ equity was $2.0 billion and $1.8 billion as of December 31, 2025 and December 31, 2024, respectively. The increase was primarily due to net income of $201.4 million, offset by dividends and $14.1 million of common stock repurchases in 2025. The Company returned $45.1 million, or $1.22 per share, to common stockholders and $3.8 million, or $50.00 per share, to preferred stockholders in 2025.

Fourth Quarter Highlights

• Earnings - Net income in the fourth quarter 2025 was $54.8 million, an increase of $9.6 million and $6.0 million compared to the linked and prior year quarters, respectively. Earnings per diluted share was $1.45 for the fourth quarter 2025, compared to $1.19 and $1.28 for the linked and prior year quarters, respectively. Adjusted diluted earnings per common share³ was $1.36 for the fourth quarter 2025, compared to $1.20 and $1.32 for the linked and prior year quarters, respectively.
• PPNR³ - PPNR of $74.8 million in the fourth quarter 2025 increased $9.2 million and $5.4 million from the linked and prior year quarters, respectively. The increases were primarily due to an increase in net interest income from higher average balances in the loan and securities portfolios, partially offset by an increase in noninterest expense.
• Net interest income and NIM - Net interest income of $168.2 million for the fourth quarter 2025 increased $9.9 million and $21.8 million from the linked and prior year quarters, respectively. NIM was 4.26% for the fourth quarter 2025, compared to 4.23% and 4.13% for the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income increased due to higher average loan balances, higher average securities balances and yields, and lower short-term interest rates that decreased the rates paid on interest-bearing liabilities.
• Noninterest income - Noninterest income of $25.4 million for the fourth quarter 2025 decreased $23.2 million from the linked quarter and increased $4.8 million from the prior year quarter. The decrease from the linked quarter was primarily due to the anticipated insurance proceeds from the tax credit recapture in the linked quarter that did not reoccur. Excluding this item, noninterest income increased $8.9 million from the linked quarter primarily due to an increase in tax credit income as a result of higher volumes and a higher net gain on other real estate owned (“OREO”). Compared to the prior year quarter, the increase was primarily related to a higher net gain on OREO, partially offset by a decrease in tax credit income.
• Noninterest expense - Noninterest expense of $114.5 million for the fourth quarter 2025 increased $4.7 million and $15.0 million from the linked and prior year quarters, respectively. The increase from linked and prior year quarters was primarily driven by higher employee compensation and other expenses related to the branch acquisition. Compared to the prior year quarter, the increase was also attributed to higher deposit costs.
• Loans - Total loans increased $217.2 million from the linked quarter to $11.8 billion as of December 31, 2025, including $292.0 million from the branch acquisition. Loan growth for the quarter was also impacted by the transfer of $68.1 million in book value loans to OREO. Average loans totaled $11.8 billion for the fourth quarter 2025, compared to $11.5 billion and $11.1 billion for the linked and prior year quarters, respectively.
• Asset quality - The allowance for credit losses to loans was 1.19% at December 31, 2025, compared to 1.29% at September 30, 2025 and 1.23% at December 31, 2024. The ratio of nonperforming assets to total assets was 0.95% at December 31, 2025, compared to 0.83% and 0.30% at September 30, 2025 and December 31, 2024, respectively. The provision for credit losses recorded in the fourth quarter 2025 was $9.2 million, compared to $8.4 million and $6.8 million for the linked and prior year quarters, respectively.
• Deposits - Total deposits increased $1.0 billion from the linked quarter to $14.6 billion as of December 31, 2025, including $609.5 million from the branch acquisition. Excluding brokered certificates of deposits, deposits increased $1.1 billion from the linked quarter. Average deposits totaled $14.5 billion for the fourth quarter 2025, compared to $13.6 billion and $13.0 billion for the linked and prior year quarters, respectively. At December 31, 2025, noninterest-bearing deposits totaled $4.9 billion, or 33.4% of total deposits, and the loan to deposit ratio was 80.8%.
• Capital - Total stockholders’ equity was $2.0 billion and tangible common equity to tangible assets⁴ was 9.07% at December 31, 2025, compared to 9.60% at September 30, 2025. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 11.9% and a total risk-based capital ratio of 13.0% as of December 31, 2025. The Company’s common equity tier 1 ratio and total risk-based capital ratio was 11.6% and 13.9%, respectively, at December 31, 2025.
  
  The Company’s Board of Directors approved a quarterly dividend of $0.33 per common share, payable on March 31, 2026 to stockholders of record as of March 13, 2026. The Board of Directors 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) December 15, 2025 to (but excluding) March 15, 2026. The dividend will be payable on March 15, 2026 and will be paid on March 16, 2026 to stockholders of record on February 27, 2026.

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3 Adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

4 Tangible common equity to tangible assets is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

Net Interest Income and NIM

Average Balance Sheets

The following table presents, for the periods indicated, certain information related to our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax-equivalent basis.

	Quarter ended
	December 31, 2025									September 30, 2025									December 31, 2024
($ in thousands)	Average Balance			Interest Income/ Expense			Average Yield/ Rate			Average Balance			Interest Income/ Expense			Average Yield/ Rate			Average Balance			Interest Income/ Expense			Average Yield/ Rate
Assets
Interest-earning assets:
Loans1, 2		11,794,459			193,587		6.51	%			11,454,183			191,589		6.64	%			11,100,112			187,761		6.73	%
Taxable securities		2,331,562			24,464		4.16				2,100,748			21,705		4.10				1,693,257			15,566		3.66
Non-taxable securities2		1,292,403			12,263		3.76				1,252,557			11,503		3.64				1,054,806			8,713		3.29
Total securities		3,623,965			36,727		4.02				3,353,305			33,208		3.93				2,748,063			24,279		3.51
Interest-earning deposits		552,843			5,436		3.90				328,392			3,638		4.40				474,878			5,612		4.70
Total interest-earning assets		15,971,267			235,750		5.86				15,135,880			228,435		5.99				14,323,053			217,652		6.05
Noninterest-earning assets		1,128,162									1,042,208									986,524
Total assets	$	17,099,429								$	16,178,088								$	15,309,577
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	3,550,349		$	17,236		1.93	%		$	3,298,022		$	17,488		2.10	%		$	3,238,964		$	19,517		2.40	%
Money market accounts		3,948,405			27,611		2.77				3,706,891			28,734		3.08				3,588,326			30,875		3.42
Savings accounts		540,764			168		0.12				532,015			183		0.14				547,176			278		0.20
Certificates of deposit		1,659,905			15,223		3.64				1,609,346			15,210		3.75				1,361,575			14,323		4.18
Total interest-bearing deposits		9,699,423			60,238		2.46				9,146,274			61,615		2.67				8,736,041			64,993		2.96
Subordinated debentures and notes		93,654			1,561		6.61				136,895			2,683		7.78				156,472			2,634		6.70
FHLB advances		11,620			127		4.34				106,130			1,207		4.51				3,370			42		4.96
Securities sold under agreements to repurchase		170,058			1,065		2.48				159,039			1,155		2.88				156,082			1,245		3.17
Other borrowings		97,196			1,108		4.52				56,164			444		3.14				36,201			96		1.05
Total interest-bearing liabilities		10,071,951			64,099		2.52				9,604,502			67,104		2.77				9,088,166			69,010		3.02
Noninterest-bearing liabilities:
Demand deposits		4,837,958									4,458,028									4,222,115
Other liabilities		167,048									151,432									154,787
Total liabilities		15,076,957									14,213,962									13,465,068
Stockholders' equity		2,022,472									1,964,126									1,844,509
Total liabilities and stockholders' equity	$	17,099,429								$	16,178,088								$	15,309,577
Total net interest income				$	171,651								$	161,331								$	148,642
Net interest margin							4.26	%								4.23	%								4.13	%
1 Average balances include nonaccrual loans. Interest income includes loan fees of $1.7 million, $1.9 million, and $2.4 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively.
2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $3.5 million, $3.0 million, and $2.3 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

Net interest income for the fourth quarter was $168.2 million, an increase of $9.9 million and $21.8 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $171.7 million, $161.3 million, and $148.6 million for the current, linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily due to growth in interest-earning assets and lower rates paid on interest-bearing liabilities, specifically money market accounts and interest-bearing transaction accounts. In the linked quarter, the Company redeemed $63.3 million of subordinated debt at a floating rate of three-month Term SOFR plus a spread of 5.66% that was replaced by a $63.3 million single advance term loan. The term loan is payable in quarterly installments on March 31, June 30, September 30 and December 31 with a final installment due on the five year anniversary of the initial advance date. The interest rate on the term loan is one-month Term SOFR plus 2.50%.

Since September 2024, the Federal Reserve has reduced the federal funds target rate 175 basis points. In response, the Company has proactively adjusted deposit pricing to partially mitigate the impact on income from the repricing of variable rate loans.

Interest income for the fourth quarter increased $6.9 million and $16.9 million as compared to the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to an increase of $340.3 million in average loan balances, primarily from the branch acquisition during the quarter, a $270.7 million increase in average securities balance as we deployed liquidity from the branch acquisition into yielding assets, and a nine basis point increase in the yield on securities due to new purchases and reinvestment of cash flows from the runoff of lower yielding investments. Compared to the prior year quarter, interest-earning assets increased $1.6 billion. Continued success in organic and acquired deposit generation has increased liquidity, which has been primarily deployed into the securities portfolio.

The average interest rate of new loan originations in the fourth quarter 2025 was 6.75%, a decrease of 23 basis points from the linked quarter. Investment purchases in the fourth quarter 2025 had a weighted average, tax equivalent yield of 4.61%.

Interest expense decreased $3.0 million and $4.9 million in the fourth quarter 2025 as compared to the linked and prior year quarters primarily due to decreased interest paid on interest-bearing deposits. The average cost of interest-bearing deposits was 2.46%, a decrease of 21 and 50 basis points compared to the linked and prior year quarters, respectively. The total cost of deposits, including noninterest-bearing demand accounts, was 1.64% during the fourth quarter 2025, compared to 1.80% and 2.00% in the linked and prior year quarters, respectively.

NIM, on a tax equivalent basis, was 4.26% in the fourth quarter 2025, an increase of three basis points and 13 basis points from the linked and prior year quarters, respectively. Included in net interest income and NIM is the net amortization of purchase accounting premiums and discounts from acquired loan portfolios. The net amount of amortization or accretion each quarter is impacted by repayment patterns on the individual loans with a premium or discount. The net effect of loan purchase accounting amortization did not effect NIM in the fourth quarter, while it reduced NIM two basis points in both the linked and prior year quarters. For the month of December 2025, the loan portfolio yield was 6.53% and the cost of total deposits was 1.59%.

Investments

	At
	December 31, 2025							September 30, 2025							December 31, 2024
($ in thousands)	Carrying Value			Net Unrealized Loss				Carrying Value			Net Unrealized Loss				Carrying Value			Net Unrealized Loss
Available-for-sale (AFS)	$	2,655,035		$	(83,258	)		$	2,351,493		$	(102,269	)		$	1,862,270		$	(163,212	)
Held-to-maturity (HTM)		1,074,957			(35,288	)			1,081,847			(49,656	)			928,935			(70,321	)
Total	$	3,729,992		$	(118,546	)		$	3,433,340		$	(151,925	)		$	2,791,205		$	(233,533	)

Investment securities totaled $3.7 billion at December 31, 2025, an increase of $296.7 million from the linked quarter. Tangible common equity to tangible assets adjusted for unrealized losses on held-to-maturity securities⁵ was 8.91% at December 31, 2025, compared to 9.37% at September 30, 2025.

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5 Tangible common equity to tangible assets adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

Loans

The following table presents total loans for the most recent five quarters:

	At
	December 31, 2025
($ in thousands)	Legacy EFSC***			Branch Acquisition***			Consolidated				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
C&I	$	2,521,959		$	84,513		$	2,606,472			$	2,320,868			$	2,316,609			$	2,198,802			$	2,139,032
CRE investor owned		2,702,061			84,078			2,786,139				2,626,657				2,547,859				2,487,375				2,405,356
CRE owner occupied		1,286,900			117,804			1,404,704				1,296,902				1,281,572				1,292,162				1,305,025
SBA loans*		1,262,456			—			1,262,456				1,257,817				1,249,225				1,283,067				1,298,007
Sponsor finance*		694,905			—			694,905				774,142				771,280				784,017				782,722
Life insurance premium finance*		1,187,128			—			1,187,128				1,151,700				1,155,623				1,149,119				1,114,299
Tax credits*		802,818			—			802,818				780,767				708,401				677,434				760,229
Residential real estate		357,616			4,662			362,278				359,315				356,722				357,615				350,640
Construction and land development		633,651			152			633,803				784,218				773,122				800,985				794,240
Consumer**		58,889			746			59,635				230,723				248,427				268,187				270,805
Total loans	$	11,508,383		$	291,955		$	11,800,338			$	11,583,109			$	11,408,840			$	11,298,763			$	11,220,355
Quarterly loan yield								6.51	%			6.64	%			6.64	%			6.57	%			6.73	%
Loans by rate type (to total loans):
Fixed								40	%			41	%			40	%			39	%			40	%
Variable:								60	%			59	%			60	%			61	%			60	%
SOFR								30	%			29	%			29	%			29	%			28	%
Prime								23	%			23	%			24	%			24	%			24	%
Other								7	%			7	%			7	%			8	%			8	%
Variable interest rate loans to total loans, adjusted for interest rate hedges								56	%			55	%			56	%			56	%			55	%
*Specialty loan category
**Certain loans were reclassified from Consumer and into other categories in the fourth quarter of 2025. Prior period amounts were not adjusted.
***Amounts reported are as of December 31, 2025 and are separately shown attributable to the acquired branches’ loan portfolio acquired on October 10, 2025, and the Company’s pre-branch acquisition loan portfolio.

Loans totaled $11.8 billion at December 31, 2025, increasing $217.2 million from the linked quarter. The increase was driven primarily by $292.0 million of loans acquired in the branch acquisition, partially offset by the $68.1 million book value of loans transferred to OREO in the quarter. Average line utilization was approximately 44% for the quarter ended December 31, 2025, compared to 45% and 42% 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:

	At
($ in thousands)	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Nonperforming loans*	$	82,809			$	127,878			$	105,807			$	109,882			$	42,687
Other1		81,544				7,821				8,221				3,271				3,955
Nonperforming assets*	$	164,353			$	135,699			$	114,028			$	113,153			$	46,642
Nonperforming loans to total loans		0.70	%			1.10	%			0.93	%			0.97	%			0.38	%
Nonperforming assets to total assets		0.95	%			0.83	%			0.71	%			0.72	%			0.30	%
Allowance for credit losses	$	140,022			$	148,854			$	145,133			$	142,944			$	137,950
Allowance for credit losses to loans		1.19	%			1.29	%			1.27	%			1.27	%			1.23	%
Allowance for credit losses to nonperforming loans*		169.1	%			116.4	%			137.2	%			130.1	%			323.2	%
Quarterly net charge-offs (recoveries)	$	20,674			$	4,057			$	630			$	(1,059	)		$	7,131
*Guaranteed balances excluded	$	28,903			$	33,475			$	26,536			$	22,607			$	21,974
1OREO and repossessed assets

Nonperforming assets increased $28.7 million during the fourth quarter 2025 and increased $117.7 million from the prior year quarter. The increase in nonperforming assets from the prior year quarter is primarily related to seven commercial real estate loans to special purpose entities (each an “SPE Borrower”) affiliated with two commercial banking relationships in Southern California that share some common ownership. Litigation resulting from a business dispute between the owners of the entities resulted in all of the SPE Borrowers filing bankruptcy in the first quarter of 2025, which was subsequently dismissed.

In the current quarter, the Company foreclosed on six of the seven properties serving as collateral for the loans. The six properties with a book value of $67.6 million were transferred to OREO at fair market value, less selling costs, resulting in a charge-off of $4.0 million and a gain on transfer of $6.2 million. While the charge-off and gain are reported in different income statement line items (provision for credit losses and noninterest income, respectively), the foreclosure of these properties resulted in a net gain of $2.2 million. It is anticipated that the seventh property with a book value of $4.0 million will be foreclosed on in the first quarter of 2026. The following table provides a summary of the foreclosed properties by collateral type:

($ in thousands)	Fair market value, less selling costs			Carrying value			Charge-off			Gain
Commercial real estate - investor owned:
Multifamily	$	13,240		$	17,209		$	3,969		$	—
Mixed use		49,760			44,341			—			2,066
Total commercial real estate - investor owned	$	63,000		$	61,550		$	3,969		$	2,066
Residential real estate:
Duplex	$	3,520		$	1,792		$	—		$	1,567
Condominiums		6,960			4,211			—			2,547
Total residential real estate		10,480			6,003			—			4,114
Total	$	73,480		$	67,553		$	3,969		$	6,180

Other than these foreclosures, the change in nonperforming assets from the linked quarter was driven primarily by net charge-offs of $20.7 million and a relationship with two loans totaling $28.0 million that went on nonaccrual. These loans are well-secured with real estate collateral and the Company expects to collect the full value of the outstanding loans. Annualized net charge-offs totaled 70 basis points of average loans in the fourth quarter 2025, compared to 14 basis points in the linked quarter and 26 basis points in the prior year quarter. Net charge-offs totaled 21 basis points of average loans in 2025, compared to 16 basis points in 2024.

The provision for credit losses totaled $9.2 million in the fourth quarter 2025, compared to $8.4 million and $6.8 million in the linked and prior year quarters, respectively. The provision for credit losses in the fourth quarter 2025 was primarily related to net charge-offs. The Company adopted a new accounting standard in the current quarter that resulted in the $3.3 million credit mark on the acquired loan portfolio from the branch acquisition being added directly to the allowance for credit losses in purchase accounting and no provision for credit losses was recognized on the acquired loans.

Deposits

The following table presents deposits broken out by type for the most recent five quarters:

	At
	December 31, 2025
($ in thousands)	Legacy EFSCa			Branch Acquisitiona			Consolidated				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Noninterest-bearing demand accounts	$	4,661,613		$	212,502		$	4,874,115			$	4,386,513			$	4,322,332			$	4,285,061			$	4,484,072
Interest-bearing demand accounts		3,428,162			109,172			3,537,334				3,301,621				3,184,670				3,193,903				3,175,292
Money market and savings accounts		4,288,521			239,989			4,528,510				4,228,605				4,209,032				4,167,375				4,117,524
Brokered certificates of deposit		721,977			—			721,977				762,499				752,422				542,172				484,588
Other certificates of deposit		899,573			47,833			947,406				888,674				848,903				845,719				885,016
Total deposit portfolio	$	13,999,846		$	609,496		$	14,609,342			$	13,567,912			$	13,317,359			$	13,034,230			$	13,146,492
Noninterest-bearing deposits to total deposits								33.4	%			32.3	%			32.5	%			32.9	%			34.1	%
Total costs of deposits								1.64	%			1.80	%			1.82	%			1.83	%			2.00	%
a Amounts reported are as of December 31, 2025 and are separately shown attributable to the acquired branches’ deposit portfolio acquired on October 10, 2025, and the Company’s pre-branch acquisition deposit portfolio.

Total deposits at December 31, 2025 were $14.6 billion, an increase of $1.0 billion and $1.5 billion from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, deposits increased $1.1 billion and $1.2 billion from the linked and prior year quarters, respectively. The increase was driven primarily by $609.5 million of deposits acquired in the branch acquisition and organic growth. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.4 billion at both December 31, 2025 and September 30, 2025.

Noninterest Income

The following table presents a comparative summary of the major components of noninterest income for the periods indicated:

	Quarter ended
	Linked quarter comparison														Prior year comparison
($ in thousands)	December 31, 2025			September 30, 2025				Increase (decrease)							December 31, 2024				Increase (decrease)
Deposit service charges	$	5,081		$	4,935			$	146			3	%		$	4,730			$	351			7	%
Wealth management revenue		2,642			2,571				71			3	%			2,719				(77	)		(3	)%
Card services revenue		2,621			2,535				86			3	%			2,484				137			6	%
Tax credit income (loss)		3,180			(300	)			3,480			NM				6,018				(2,838	)		(47	)%
Anticipated insurance recoveries		—			32,112				(32,112	)		(100	)%			—				—			—	%
Net gain (loss) on OREO		6,169			7				6,162			NM				(68	)			6,237			NM
Other income		5,719			6,764				(1,045	)		(15	)%			4,748				971			20	%
Total noninterest income	$	25,412		$	48,624			$	(23,212	)		(48	)%		$	20,631			$	4,781			23	%
NM - Not meaningful

Total noninterest income for the fourth quarter 2025 was $25.4 million, a decrease of $23.2 million and an increase of $4.8 million from the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily driven by the $32.1 million in accrued insurance proceeds that are anticipated to be received as a result of the recaptured tax credits recognized in the linked quarter that did not reoccur, partially offset by a $6.2 million net gain on OREO and an increase of $3.5 million in tax credit income. 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 on credits carried at fair value. The increase from the prior year quarter was primarily due to a $6.2 million net gain on OREO, partially offset by a $2.8 million decrease in tax credit income.

The following table presents a comparative summary of the major components of other income for the periods indicated:

	Quarter ended
	Linked quarter comparison													Prior year comparison
($ in thousands)	December 31, 2025			September 30, 2025			Increase (decrease)							December 31, 2024			Increase (decrease)
BOLI	$	1,925		$	2,062		$	(137	)		(7	)%		$	895		$	1,030			115	%
Community development investments		922			309			613			198	%			297			625			210	%
Gain on SBA loan sales		—			1,140			(1,140	)		(100	)%			—			—			—	%
Private equity fund distributions		226			626			(400	)		(64	)%			320			(94	)		(29	)%
Servicing fees		517			587			(70	)		(12	)%			528			(11	)		(2	)%
Swap fees		159			341			(182	)		(53	)%			972			(813	)		(84	)%
Miscellaneous income		1,970			1,699			271			16	%			1,736			234			13	%
Total other income	$	5,719		$	6,764		$	(1,045	)		(15	)%		$	4,748		$	971			20	%

Other income in the fourth quarter 2025 decreased $1.0 million and increased $1.0 million compared to the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily driven by a gain on SBA loan sales in the linked quarter that did not reoccur in the current period. Compared to the prior year quarter, the increase in other income was related to an increase in BOLI income due to the purchase of additional life insurance policies and higher community development investment income, partially offset by lower swap fee income. Community development investment income is not a consistent source of income and fluctuates based on distributions from the underlying funds.

Noninterest Expense

The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:

	Quarter ended
	Linked quarter comparison																					Prior year comparison
	December 31, 2025
($ in thousands)	Legacy EFSCa				Branch Acquisitiona			Consolidated				September 30, 2025			Increase (decrease)							December 31, 2024			Increase (decrease)
Employee compensation and benefits	$	48,029			$	2,120		$	50,149			$	49,640		$	509			1	%		$	46,168		$	3,981			9	%
Deposit costs		27,471				—			27,471				27,172			299			1	%			22,881			4,590			20	%
Occupancy		5,006				758			5,764				4,895			869			18	%			4,336			1,428			33	%
Core conversion expense		—				—			—				—			—			—	%			1,893			(1,893	)		(100	)%
Acquisition costs		2,548				—			2,548				609			1,939			318	%			—			2,548			—	%
FDIC special assessment		(652	)			—			(652	)			—			(652	)		—	%			—			(652	)		—	%
Other expense		27,888				1,364			29,252				27,474			1,778			6	%			24,244			5,008			21	%
Total noninterest expense	$	110,290			$	4,242		$	114,532			$	109,790		$	4,742			4	%		$	99,522		$	15,010			15	%
a Amounts reported are for the quarter ended December 31, 2025 and are separately shown attributable to the acquired branches’ noninterest expense, and the Company’s legacy branch noninterest expense.

Noninterest expense was $114.5 million for the fourth quarter 2025, a $4.7 million and $15.0 million increase from the linked and prior year quarters, respectively. Acquisition costs related to the branch acquisition that was completed during the current quarter increased $1.9 million compared to the linked quarter. Employee compensation and benefits increased $4.0 million from the prior year quarter because of an increase in the associate base and merit increases throughout 2025. Compared to the prior year quarter, the increase was also related to an increase in acquisition costs of $2.5 million and an increase of $4.6 million in deposit costs due to higher average deposit vertical balances.

For the fourth quarter 2025, the Company’s core efficiency ratio⁶ was 58.3% for the quarter ended December 31, 2025, compared to 61.0% for the linked quarter and 57.1% for the prior year quarter.

____________________

6 Core efficiency ratio and adjusted effective tax rate are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

Income Taxes

The Company’s effective tax rate was 21.5% in the fourth quarter 2025, compared to 49.0% and 19.5% in the linked and prior year quarters, respectively. Included in tax expense during the linked quarter was $24.1 million in transferrable tax credits that were recaptured as discussed above and approximately $8.0 million of incremental tax liability attributable to the anticipated insurance proceeds from the insured recaptured credits. Excluding the impact of the recaptured tax credits and related insurance proceeds, the adjusted effective tax rate⁶ for the third quarter 2025 was 20.0%. As part of the normal, ongoing review of state tax apportionment, the Company's state statutory tax rate was increased in the fourth quarter. Due to the increase, the Company’s federal and state statutory tax rate is a combined 25.1%, and after adjusting for permanent tax differences, the Company’s adjusted effective tax rate for 2025 is approximately 20.0%.

Capital

The following table presents total equity and various EFSC capital ratios for the most recent five quarters:

	At
($ in thousands)	December 31, 2025*				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Stockholders’ equity	$	2,039,386			$	1,982,332			$	1,922,899			$	1,868,073			$	1,824,002
Total risk-based capital to risk-weighted assets		13.9	%			14.4	%			14.7	%			14.7	%			14.6	%
Tier 1 capital to risk-weighted assets		12.8	%			13.3	%			13.2	%			13.1	%			13.1	%
Common equity tier 1 capital to risk-weighted assets		11.6	%			12.0	%			11.9	%			11.8	%			11.8	%
Leverage ratio		10.5	%			11.1	%			11.1	%			11.0	%			11.1	%
Tangible common equity to tangible assets		9.07	%			9.60	%			9.42	%			9.30	%			9.05	%
*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Total equity was $2.0 billion at December 31, 2025, an increase of $57.1 million from the linked quarter. The Company’s tangible common book value per common share⁷ was $41.37 at December 31, 2025, compared to $41.58 and $37.27 in the linked and prior year quarters, respectively.

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, adjusted effective tax rate, 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, 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.

____________________

7 Tangible common book value per common share is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

The Company considers its tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, adjusted effective tax rate, 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, 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, core conversion expenses, acquisition costs, accrued insurance proceeds anticipated to be received as a result of recaptured tax credits, net gain or loss on OREO, and 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 tangible common equity to tangible assets 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 Tuesday, January 27, 2026. During the call, management will review the fourth quarter 2025 results and related matters. This press release as well as a related slide presentation will be accessible on the Company’s website at www.enterprisebank.com under “Investor Relations” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-800-715-9871. After connecting, you may say the name of the conference or enter the Conference ID 30174. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC4Q2025EarningsCallRegistration. 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 $17.3 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 Stock 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 the war in Israel and potential for a broader regional conflict and the war in 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, 2024, 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.

 

 

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
	Quarter ended																				Year ended
(in thousands, except per share data)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
EARNINGS SUMMARY
Net interest income	$	168,174			$	158,286			$	152,762			$	147,516			$	146,370			$	626,738			$	568,096
Provision for credit losses		9,236				8,447				3,470				5,184				6,834				26,337				21,508
Noninterest income		25,412				48,624				20,604				18,483				20,631				113,123				69,703
Noninterest expense		114,532				109,790				105,702				99,783				99,522				429,807				385,047
Income before income tax expense		69,818				88,673				64,194				61,032				60,645				283,717				231,244
Income tax expense		15,024				43,438				12,810				11,071				11,811				82,343				45,978
Net income		54,794				45,235				51,384				49,961				48,834				201,374				185,266
Preferred stock dividends		937				938				937				938				937				3,750				3,750
Net income available to common stockholders	$	53,857			$	44,297			$	50,447			$	49,023			$	47,897			$	197,624			$	181,516
Diluted earnings per common share	$	1.45			$	1.19			$	1.36			$	1.31			$	1.28			$	5.31			$	4.83
Adjusted diluted earnings per share1	$	1.36			$	1.20			$	1.37			$	1.31			$	1.32			$	5.24			$	4.88
Return on average assets		1.27	%			1.11	%			1.30	%			1.30	%			1.27	%			1.24	%			1.25	%
Adjusted return on average assets1		1.19	%			1.12	%			1.31	%			1.29	%			1.31	%			1.23	%			1.26	%
Return on average common equity		10.95	%			9.29	%			11.03	%			11.10	%			10.75	%			10.58	%			10.60	%
Adjusted return on average common equity1		10.28	%			9.40	%			11.12	%			11.08	%			11.08	%			10.45	%			10.71	%
ROATCE1		14.02	%			11.56	%			13.84	%			14.02	%			13.63	%			13.34	%			13.58	%
Adjusted ROATCE1		13.15	%			11.70	%			13.96	%			13.99	%			14.05	%			13.17	%			13.71	%
Net interest margin (tax equivalent)		4.26	%			4.23	%			4.21	%			4.15	%			4.13	%			4.21	%			4.16	%
Efficiency ratio		59.2	%			53.1	%			61.0	%			60.1	%			59.6	%			58.1	%			60.4	%
Core efficiency ratio1		58.3	%			61.0	%			59.3	%			58.8	%			57.1	%			59.3	%			58.4	%
Assets	$	17,300,884			$	16,402,405			$	16,076,299			$	15,676,594			$	15,596,431
Average assets	$	17,099,429			$	16,178,088			$	15,859,721			$	15,642,999			$	15,309,577			$	16,199,003			$	14,841,690
Period end common shares outstanding		36,965				37,011				36,950				36,928				36,988
Dividends per common share	$	0.32			$	0.31			$	0.30			$	0.29			$	0.28			$	1.22			$	1.06
Tangible book value per common share1	$	41.37			$	41.58			$	40.02			$	38.54			$	37.27
Tangible common equity to tangible assets1		9.07	%			9.60	%			9.42	%			9.30	%			9.05	%
Total risk-based capital to risk-weighted assets2		13.9	%			14.4	%			14.7	%			14.7	%			14.6	%
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.
2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

 

 

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Quarter ended																	Year ended
(in thousands, except per share data)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Dec 31, 2025				Dec 31, 2024
INCOME STATEMENTS
NET INTEREST INCOME
Interest income	$	232,273			$	225,390			$	218,967		$	211,780		$	215,380		$	888,410			$	851,051
Interest expense		64,099				67,104				66,205			64,264			69,010			261,672				282,955
Net interest income		168,174				158,286				152,762			147,516			146,370			626,738				568,096
Provision for credit losses		9,236				8,447				3,470			5,184			6,834			26,337				21,508
Net interest income after provision for credit losses		158,938				149,839				149,292			142,332			139,536			600,401				546,588
NONINTEREST INCOME
Deposit service charges		5,081				4,935				4,940			4,420			4,730			19,376				18,344
Wealth management revenue		2,642				2,571				2,584			2,659			2,719			10,456				10,452
Card services revenue		2,621				2,535				2,444			2,395			2,484			9,995				9,966
Tax credit income (loss)		3,180				(300	)			2,207			2,610			6,018			7,697				8,954
Insurance recoveries1		—				32,112				—			—			—			32,112				—
Other income		11,888				6,771				8,429			6,399			4,680			33,487				21,987
Total noninterest income		25,412				48,624				20,604			18,483			20,631			113,123				69,703
NONINTEREST EXPENSE
Employee compensation and benefits		50,149				49,640				50,164			48,208			46,168			198,161				181,313
Deposit costs		27,471				27,172				24,765			23,823			22,881			103,231				88,645
Occupancy		5,764				4,895				5,065			4,430			4,336			20,154				17,231
FDIC special assessment		(652	)			—				—			—			—			(652	)			625
Core conversion expense		—				—				—			—			1,893			—				4,868
Acquisition costs		2,548				609				518			—			—			3,675				—
Other expense		29,252				27,474				25,190			23,322			24,244			105,238				92,365
Total noninterest expense		114,532				109,790				105,702			99,783			99,522			429,807				385,047
Income before income tax expense		69,818				88,673				64,194			61,032			60,645			283,717				231,244
Income tax expense		15,024				11,326				12,810			11,071			11,811			50,231				45,978
Tax credit recapture and provision for anticipated tax applied to related insurance recoveries2		—				32,112				—			—			—			32,112				—
Total income tax expense		15,024				43,438				12,810			11,071			11,811			82,343				45,978
Net income	$	54,794			$	45,235			$	51,384		$	49,961		$	48,834		$	201,374			$	185,266
Preferred stock dividends		937				938				937			938			937			3,750				3,750
Net income available to common stockholders	$	53,857			$	44,297			$	50,447		$	49,023		$	47,897		$	197,624			$	181,516
Basic earnings per common share	$	1.46			$	1.20			$	1.36		$	1.33		$	1.29		$	5.34			$	4.86
Diluted earnings per common share	$	1.45			$	1.19			$	1.36		$	1.31		$	1.28		$	5.31			$	4.83
1Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event.
2Represents recapture of $24.1 million solar tax credit and approximately $8.0 million of estimated tax liability related to anticipated proceeds from pending insurance claim related to the recapture event.

 

 

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	At
($ in thousands)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024
BALANCE SHEETS
ASSETS
Cash and due from banks	$	208,080			$	208,455			$	252,817			$	260,280			$	270,975
Interest-earning deposits		474,720				264,399				239,602				222,780				495,076
Debt and equity investments		3,810,876				3,527,467				3,384,347				3,108,763				2,863,989
Loans held for sale		928				681				586				—				110
Loans		11,800,338				11,583,109				11,408,840				11,298,763				11,220,355
Allowance for credit losses		(140,022	)			(148,854	)			(145,133	)			(142,944	)			(137,950	)
Total loans, net		11,660,316				11,434,255				11,263,707				11,155,819				11,082,405
Fixed assets, net		58,993				49,248				48,639				48,083				45,009
Goodwill		416,968				365,164				365,164				365,164				365,164
Intangible assets, net		21,175				6,140				6,876				7,628				8,484
Other assets		648,828				546,596				514,561				508,077				465,219
Total assets	$	17,300,884			$	16,402,405			$	16,076,299			$	15,676,594			$	15,596,431
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits	$	4,874,115			$	4,386,513			$	4,322,332			$	4,285,061			$	4,484,072
Interest-bearing deposits		9,735,227				9,181,399				8,995,027				8,749,169				8,662,420
Total deposits		14,609,342				13,567,912				13,317,359				13,034,230				13,146,492
Subordinated debentures and notes		93,688				93,617				156,796				156,695				156,551
FHLB advances		—				327,000				294,000				205,000				—
Other borrowings		387,717				247,006				210,641				255,635				280,821
Other liabilities		170,751				184,538				174,604				156,961				188,565
Total liabilities		15,261,498				14,420,073				14,153,400				13,808,521				13,772,429
Stockholders’ equity:
Preferred stock		71,988				71,988				71,988				71,988				71,988
Common stock		370				370				369				369				370
Additional paid-in capital		1,000,775				997,446				991,663				988,554				990,733
Retained earnings		1,020,840				980,548				947,864				908,553				877,629
Accumulated other comprehensive loss		(54,587	)			(68,020	)			(88,985	)			(101,391	)			(116,718	)
Total stockholders’ equity		2,039,386				1,982,332				1,922,899				1,868,073				1,824,002
Total liabilities and stockholders’ equity	$	17,300,884			$	16,402,405			$	16,076,299			$	15,676,594			$	15,596,431

 

 

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Year ended
	December 31, 2025										December 31, 2024
($ in thousands)	Average Balance			Interest Income/ Expense			Average Yield/ Rate				Average Balance			Interest Income/ Expense			Average Yield/ Rate
AVERAGE BALANCE SHEET
ASSETS
Interest-earning assets:
Loans1, 2	$	11,463,410		$	755,222		6.59	%			$	10,990,774		$	755,448		6.87	%
Taxable securities		2,057,017			83,734		4.07					1,512,132			53,167		3.52
Nontaxable securities2		1,209,424			43,623		3.61					1,000,558			31,963		3.19
Total securities		3,266,441			127,357		3.90					2,512,690			85,130		3.39
Interest-earning deposits		418,980			17,566		4.19					368,221			18,918		5.14
Total interest-earning assets		15,148,831			900,145		5.94					13,871,685			859,496		6.20
Noninterest-earning assets		1,050,172										970,005
Total assets	$	16,199,003									$	14,841,690
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing demand accounts	$	3,311,368		$	68,932		2.08	%			$	3,033,616		$	76,932		2.54	%
Money market accounts		3,730,110			113,286		3.04					3,494,497			127,651		3.65
Savings accounts		535,021			724		0.14					567,147			1,261		0.22
Certificates of deposit		1,533,608			58,156		3.79					1,371,009			58,764		4.29
Total interest-bearing deposits		9,110,107			241,098		2.65					8,466,269			264,608		3.13
Subordinated debentures and notes		135,809			9,543		7.03					156,260			10,497		6.72
FHLB advances		75,027			3,422		4.56					30,363			1,691		5.57
Securities sold under agreements to repurchase		201,001			5,829		2.90					164,959			5,667		3.44
Other borrowings		56,610			1,780		3.14					37,833			492		1.30
Total interest-bearing liabilities		9,578,554			261,672		2.73					8,855,684			282,955		3.20
Noninterest-bearing liabilities:
Demand deposits		4,525,761										4,042,368
Other liabilities		155,194										159,463
Total liabilities		14,259,509										13,057,515
Stockholders' equity		1,939,494										1,784,175
Total liabilities and stockholders' equity	$	16,199,003									$	14,841,690
Total net interest income				$	638,473									$	576,541
Net interest margin							4.21	%									4.16	%
1 Average balances include nonaccrual loans. Interest income includes loan fees of $7.0 million and $9.6 million for the years ended December 31, 2025 and December 31, 2024, respectively.
2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $11.7 million and $8.4 million for the years ended December 31, 2025 and December 31, 2024, respectively.

 

 

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	At or for the quarter ended
($ in thousands)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024
LOAN PORTFOLIO
Commercial and industrial	$	5,231,616			$	4,943,561			$	4,870,268			$	4,729,707			$	4,716,689
Commercial real estate		5,453,821				5,178,649				5,074,100				5,046,293				4,974,787
Construction real estate		687,584				858,146				844,497				880,708				891,059
Residential real estate		367,682				365,010				364,281				366,353				359,263
Consumer		59,635				237,743				255,694				275,702				278,557
Total loans	$	11,800,338			$	11,583,109			$	11,408,840			$	11,298,763			$	11,220,355
DEPOSIT PORTFOLIO
Noninterest-bearing demand accounts	$	4,874,115			$	4,386,513			$	4,322,332			$	4,285,061			$	4,484,072
Interest-bearing demand accounts		3,537,334				3,301,621				3,184,670				3,193,903				3,175,292
Money market and savings accounts		4,528,510				4,228,605				4,209,032				4,167,375				4,117,524
Brokered certificates of deposit		721,977				762,499				752,422				542,172				484,588
Other certificates of deposit		947,406				888,674				848,903				845,719				885,016
Total deposits	$	14,609,342			$	13,567,912			$	13,317,359			$	13,034,230			$	13,146,492
AVERAGE BALANCES
Loans	$	11,794,459			$	11,454,183			$	11,358,209			$	11,240,806			$	11,100,112
Securities		3,623,965				3,353,305				3,149,010				2,930,912				2,748,063
Interest-earning assets		15,971,267				15,135,880				14,822,957				14,650,854				14,323,053
Assets		17,099,429				16,178,088				15,859,721				15,642,999				15,309,577
Deposits		14,537,381				13,604,302				13,245,241				13,141,556				12,958,156
Stockholders’ equity		2,022,472				1,964,126				1,906,089				1,863,272				1,844,509
Tangible common equity1		1,524,453				1,520,476				1,461,700				1,418,094				1,398,427
YIELDS (tax equivalent)
Loans		6.51	%			6.64	%			6.64	%			6.57	%			6.73	%
Securities		4.02				3.93				3.86				3.75				3.51
Interest-earning assets		5.86				5.99				6.00				5.93				6.05
Interest-bearing deposits		2.46				2.67				2.70				2.77				2.96
Deposits		1.64				1.80				1.82				1.83				2.00
Subordinated debentures and notes		6.61				7.78				7.00				6.63				6.70
FHLB advances and other borrowed funds		3.27				3.47				3.48				3.01				2.81
Interest-bearing liabilities		2.52				2.77				2.81				2.84				3.02
Net interest margin		4.26				4.23				4.21				4.15				4.13
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.

 

 

 

ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	Quarter ended
(in thousands, except per share data)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024
ASSET QUALITY
Net charge-offs (recoveries)	$	20,674			$	4,057			$	630			$	(1,059	)		$	7,131
Nonperforming loans		82,809				127,878				105,807				109,882				42,687
Classified assets		410,485				352,792				281,162				264,460				193,838
Nonperforming loans to total loans		0.70	%			1.10	%			0.93	%			0.97	%			0.38	%
Nonperforming assets to total assets		0.95	%			0.83	%			0.71	%			0.72	%			0.30	%
Allowance for credit losses to total loans		1.19	%			1.29	%			1.27	%			1.27	%			1.23	%
Allowance for credit losses to loans, excluding guaranteed loans1		1.29	%			1.40	%			1.38	%			1.38	%			1.34	%
Allowance for credit losses to nonperforming loans		169.1	%			116.4	%			137.2	%			130.1	%			323.2	%
Net charge-offs (recoveries) to average loans - annualized		0.70	%			0.14	%			0.02	%			(0.04	)%			0.26	%
WEALTH MANAGEMENT
Trust assets under management	$	2,750,803			$	2,566,784			$	2,457,471			$	2,250,004			$	2,412,471
SHARE DATA
Book value per common share	$	53.22			$	51.62			$	50.09			$	48.64			$	47.37
Tangible book value per common share1	$	41.37			$	41.58			$	40.02			$	38.54			$	37.27
Market value per share	$	54.00			$	57.98			$	55.10			$	53.74			$	56.40
Period end common shares outstanding		36,965				37,011				36,950				36,928				36,988
Average basic common shares		36,997				37,015				36,963				36,971				37,118
Average diluted common shares		37,265				37,333				37,172				37,287				37,447
CAPITAL
Total risk-based capital to risk-weighted assets2		13.9	%			14.4	%			14.7	%			14.7	%			14.6	%
Tier 1 capital to risk-weighted assets2		12.8	%			13.3	%			13.2	%			13.1	%			13.1	%
Common equity tier 1 capital to risk-weighted assets2		11.6	%			12.0	%			11.9	%			11.8	%			11.8	%
Tangible common equity to tangible assets1		9.07	%			9.60	%			9.42	%			9.30	%			9.05	%
1Refer to Reconciliations of Non-GAAP Financial Measures table for a reconciliation of these measures to GAAP.
2Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

 

 

ENTERPRISE FINANCIAL SERVICES CORP
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
	Quarter ended																				Year ended
($ in thousands)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
CORE EFFICIENCY RATIO
Net interest income (GAAP)	$	168,174			$	158,286			$	152,762			$	147,516			$	146,370			$	626,738			$	568,096
Tax equivalent adjustment		3,477				3,045				2,738				2,475				2,272				11,735				8,445
Noninterest income (GAAP)		25,412				48,624				20,604				18,483				20,631				113,123				69,703
Less insurance recoveries1		—				32,112				—				—				—				32,112				—
Less net gain (loss) on sale of investment securities		(57	)			—				—				106				—				49				—
Less net gain (loss) on OREO		6,169				7				56				23				(68	)			6,255				3,089
Core revenue (non-GAAP)	$	190,951			$	177,836			$	176,048			$	168,345			$	169,341			$	713,180			$	643,155
Noninterest expense (GAAP)	$	114,532			$	109,790			$	105,702			$	99,783			$	99,522			$	429,807			$	385,047
Less FDIC special assessment		(652	)			—				—				—				—				(652	)			625
Less core conversion expense		—				—				—				—				1,893				—				4,868
Less amortization on intangibles		1,380				736				753				855				916				3,724				3,834
Less acquisition costs		2,548				609				518				—				—				3,675				—
Core noninterest expense (non-GAAP)	$	111,256			$	108,445			$	104,431			$	98,928			$	96,713			$	423,060			$	375,720
Core efficiency ratio (non-GAAP)		58.3	%			61.0	%			59.3	%			58.8	%			57.1	%			59.3	%			58.4	%
1Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event.

	Quarter ended
(in thousands, except per share data)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024
TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER SHARE AND TANGIBLE COMMON EQUITY RATIO
Stockholders’ equity (GAAP)	$	2,039,386			$	1,982,332			$	1,922,899			$	1,868,073			$	1,824,002
Less preferred stock		71,988				71,988				71,988				71,988				71,988
Less goodwill		416,968				365,164				365,164				365,164				365,164
Less intangible assets		21,175				6,140				6,876				7,628				8,484
Tangible common equity (non-GAAP)	$	1,529,255			$	1,539,040			$	1,478,871			$	1,423,293			$	1,378,366
Less net unrealized losses on HTM securities, after tax		26,431				37,341				56,508				55,819				52,881
Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP)	$	1,502,824			$	1,501,699			$	1,422,363			$	1,367,474			$	1,325,485
Common shares outstanding		36,965				37,011				36,950				36,928				36,988
Tangible book value per common share (non-GAAP)	$	41.37			$	41.58			$	40.02			$	38.54			$	37.27
Total assets (GAAP)	$	17,300,884			$	16,402,405			$	16,076,299			$	15,676,594			$	15,596,431
Less goodwill		416,968				365,164				365,164				365,164				365,164
Less intangible assets		21,175				6,140				6,876				7,628				8,484
Tangible assets (non-GAAP)	$	16,862,741			$	16,031,101			$	15,704,259			$	15,303,802			$	15,222,783
Tangible common equity to tangible assets (non-GAAP)		9.07	%			9.60	%			9.42	%			9.30	%			9.05	%
Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP)		8.91	%			9.37	%			9.06	%			8.94	%			8.71	%

	Quarter ended																				Year ended
($ in thousands)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED EARNINGS PER SHARE
Average stockholder’s equity (GAAP)	$	2,022,472			$	1,964,126			$	1,906,089			$	1,863,272			$	1,844,509			$	1,939,494			$	1,784,175
Less average preferred stock		71,988				71,988				71,988				71,988				71,988				71,988				71,988
Less average goodwill		414,858				365,164				365,164				365,164				365,164				377,690				365,164
Less average intangible assets		11,173				6,498				7,237				8,026				8,930				8,238				10,329
Average tangible common equity (non-GAAP)	$	1,524,453			$	1,520,476			$	1,461,700			$	1,418,094			$	1,398,427			$	1,481,578			$	1,336,694
Net income (GAAP)	$	54,794			$	45,235			$	51,384			$	49,961			$	48,834			$	201,374			$	185,266
FDIC special assessment (after tax)		(488	)			—				—				—				—				(488	)			470
Core conversion expense (after tax)		—				—				—				—				1,424				—				3,661
Acquisition costs (after tax)		1,742				549				462				—				—				2,753				—
Less net gain (loss) on sale of investment securities (after tax)		(43	)			—				—				80				—				37				—
Less net gain (loss) on OREO (after tax)		4,621				5				42				17				(51	)			4,685				2,323
Net income adjusted (non-GAAP)	$	51,470			$	45,779			$	51,804			$	49,864			$	50,309			$	198,917			$	187,074
Less preferred stock dividends		937				938				937				938				937				3,750				3,750
Net income available to common stockholders adjusted (non-GAAP)	$	50,533			$	44,841			$	50,867			$	48,926			$	49,372			$	195,167			$	183,324
Return on average common equity		10.95	%			9.29	%			11.03	%			11.10	%			10.75	%			10.58	%			10.60	%
Adjusted return on average common equity (non-GAAP)		10.28	%			9.40	%			11.12	%			11.08	%			11.08	%			10.45	%			10.71	%
ROATCE (non-GAAP)		14.02	%			11.56	%			13.84	%			14.02	%			13.63	%			13.34	%			13.58	%
Adjusted ROATCE (non-GAAP)		13.15	%			11.70	%			13.96	%			13.99	%			14.05	%			13.17	%			13.71	%
Average assets	$	17,099,429			$	16,178,088			$	15,859,721			$	15,642,999			$	15,309,577			$	16,199,003			$	14,841,690
Return on average assets (GAAP)		1.27	%			1.11	%			1.30	%			1.30	%			1.27	%			1.24	%			1.25	%
Adjusted return on average assets (non-GAAP)		1.19	%			1.12	%			1.31	%			1.29	%			1.31	%			1.23	%			1.26	%
Average diluted common shares		37,265				37,333				37,172				37,287				37,447				37,239				37,567
Diluted earnings per share (GAAP)	$	1.45			$	1.19			$	1.36			$	1.31			$	1.28			$	5.31			$	4.83
Adjusted diluted earnings per share (non-GAAP)	$	1.36			$	1.20			$	1.37			$	1.31			$	1.32			$	5.24			$	4.88

	Quarter ended																	Year ended
($ in thousands)	Dec 31, 2025				Sep 30, 2025			Jun 30, 2025			Mar 31, 2025			Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)
Net interest income (GAAP)	$	168,174			$	158,286		$	152,762		$	147,516		$	146,370			$	626,738			$	568,096
Noninterest income (GAAP)		25,412				48,624			20,604			18,483			20,631				113,123				69,703
FDIC special assessment		(652	)			—			—			—			—				(652	)			625
Core conversion expense		—				—			—			—			1,893				—				4,868
Acquisition costs		2,548				609			518			—			—				3,675				—
Less net gain (loss) on sale of investment securities		(57	)			—			—			106			—				49				—
Less net gain (loss) on OREO		6,169				7			56			23			(68	)			6,255				3,089
Less insurance recoveries		—				32,112			—			—			—				32,112				—
Less noninterest expense (GAAP)		114,532				109,790			105,702			99,783			99,522				429,807				385,047
PPNR (non-GAAP)	$	74,838			$	65,610		$	68,126		$	66,087		$	69,440			$	274,661			$	255,156

	At
($ in thousands)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024
ALLOWANCE TO LOANS RATIO EXCLUDING GUARANTEED LOANS
Loans	$	11,800,338			$	11,583,109			$	11,408,840			$	11,298,763			$	11,220,355
Less guaranteed loans		960,132				922,168				913,118				942,651				947,665
Adjusted loans (non-GAAP)	$	10,840,206			$	10,660,941			$	10,495,722			$	10,356,112			$	10,272,690
Allowance for credit losses	$	140,022			$	148,854			$	145,133			$	142,944			$	137,950
Allowance for credit losses/loans (GAAP)		1.19	%			1.29	%			1.27	%			1.27	%			1.23	%
Allowance for credit losses/adjusted loans (non-GAAP)		1.29	%			1.40	%			1.38	%			1.38	%			1.34	%

	Quarter ended																				Year ended
($ in thousands)	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024				Dec 31, 2025
ADJUSTED EFFECTIVE TAX RATE
Income before income tax expense (GAAP)	$	69,818			$	88,673			$	64,194			$	61,032			$	60,645			$	283,717
Less insurance recoveries1		—				32,112				—				—				—				32,112
Adjusted income before income tax expense (non-GAAP)	$	69,818			$	56,561			$	64,194			$	61,032			$	60,645			$	251,605
Income tax expense (GAAP)	$	15,024			$	43,438			$	12,810			$	11,071			$	11,811			$	82,343
Less tax credit recapture and tax applied to insurance recoveries1		—				32,112				—				—				—				32,112
Adjusted income tax expense (non-GAAP)	$	15,024			$	11,326			$	12,810			$	11,071			$	11,811			$	50,231
Effective tax rate (GAAP)		21.5	%			49.0	%			20.0	%			18.1	%			19.5	%			29.0	%
Adjusted effective tax rate (non-GAAP)		21.5	%			20.0	%			20.0	%			18.1	%			19.5	%			20.0	%
1Represents $32.1 million of anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event included in noninterest income, and $24.1 million of tax liability related to the anticipated recapture plus approximately $8.0 million of estimated tax liability related to the anticipated proceeds from the pending insurance claim included in income tax expense.

 

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Source: Enterprise Financial Services Corp