Enterprise Financial Services Corp Reports 3% Asset Growth, Strong Q3 Earnings

As of September 30, 2024, Enterprise Financial Services Corp reported total assets of $14.95 billion, reflecting a 3% increase from $14.52 billion at the end of 2023. Total loans, net, rose to $10.94 billion, up from $10.75 billion, while total deposits increased to $12.47 billion from $12.18 billion. Shareholders' equity also saw a significant rise, reaching $1.83 billion compared to $1.72 billion at the end of the previous year.

For the third quarter of 2024, the company reported interest income from loans of $191.51 million, an increase from $180.24 million in the same period of 2023. Total interest income for the quarter was $216.30 million, up from $200.91 million year-over-year. Net interest income slightly increased to $143.47 million from $141.64 million in the prior year. After accounting for provisions for credit losses, net interest income was $139.37 million, compared to $133.61 million in 2023.

Noninterest income surged to $21.42 million for the quarter, significantly higher than $12.09 million in the previous year. This contributed to an income before income tax expense of $62.78 million, up from $57.05 million. Net income for the quarter was $50.59 million, an increase from $44.67 million in 2023, with earnings per share rising to $1.33 from $1.17.

For the nine months ended September 30, 2024, net income totaled $136.43 million, down from $149.53 million in the same period of 2023. The decrease was attributed to a reduction in unrealized gains on available-for-sale securities and higher noninterest expenses, which increased by $29.9 million year-over-year to $285.5 million.

The company’s provision for credit losses for the third quarter was $4.1 million, down from $4.8 million in the prior year. The allowance for credit losses on loans was 1.26% of total loans, slightly up from 1.24% at the end of 2023. Nonperforming loans decreased to $28.38 million from $43.73 million, indicating improved asset quality.

Strategically, the company has focused on increasing its loan portfolio, particularly in construction and land development loans, which rose by $135.9 million. The company also reported a quarterly dividend of $0.28 per common share, payable on December 31, 2024. Overall, Enterprise Financial Services Corp demonstrated solid growth in assets, loans, and deposits, alongside a notable increase in noninterest income, despite challenges in net income for the nine-month period.