Core Insights - Enterprise Financial Services (EFSC) reported strong Q2 2025 results, with adjusted earnings per share of $1.37, exceeding the consensus estimate of $1.21, and GAAP revenue of $173.4 million, surpassing the forecast of $165.99 million [1][5][12] Financial Performance - Non-GAAP EPS increased by 13.2% year-over-year from $1.21 in Q2 2024 [2] - GAAP revenue rose by 11.2% from $156.0 million in Q2 2024 [2] - Net interest income was $152.8 million, reflecting an 8.8% increase from $140.5 million in Q2 2024 [2] - Total loans reached $11.4 billion, a 3.6% increase from $11.0 billion in the previous year [2] - Total deposits grew to $13.3 billion, up 8.1% from $12.3 billion in Q2 2024 [2] - Tangible book value per common share increased by 14.3% to $40.02 from $35.02 in Q2 2024 [2] Business Strategy - The company focuses on relationship-driven commercial banking, specializing in niche markets often overlooked by larger banks [3] - Growth strategy includes expanding geographic footprint through targeted acquisitions and building deep client relationships [4] - Emphasis on maintaining a stable deposit base, strong capital levels, and investing in technology for improved service delivery [4] Recent Developments - The company announced an increase in the quarterly dividend to $0.31 per share, effective Q3 2025 [10][13] - Plans to acquire branch locations from First Interstate Bank, expected to close in Q4 2025, which will add approximately $740 million in deposits and $200 million in loans [10] - SBA lending remains a significant source of fee income, with $24.4 million in SBA loan sales completed [11] Asset Quality and Risk Management - Nonperforming loans increased to $105.8 million, approximately 0.93% of total loans, with management confident in eventual collection [8] - The allowance for credit losses remained at 1.27% of total loans, indicating cautious credit risk practices [8] - Capital levels are strong, with a tangible common equity ratio of 9.42% and regulatory capital ratios exceeding required minimums [9] Outlook - Management anticipates modest pressure on net interest margin, with potential quarterly declines of up to five basis points [12] - The expected acquisition is projected to contribute to deposit and loan growth, with mid-single-digit EPS accretion anticipated in fiscal 2026 [12]

EXHIBIT 99.1 ENTERPRISE FINANCIAL SERVICES CORP REPORTS SECOND QUARTER 2025 RESULTS Second Quarter Results St. Louis, MO. July 28, 2025 – Enterprise Financial Services Corp (Nasdaq: EFSC) (the "Company" or "EFSC"), today announced financial results for the second quarter of 2025. "Our second quarter results demonstrated expansion in net interest income and net interest margin, continuing the strong start to 2025," said Jim Lally, President and Chief Executive Officer. "Loan growth spanned the portfolio and ...

Enterprise Financial Services (EFSC) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on July 28, might help the stock move higher if these key numbers are better ...

Company Overview - Enterprise Financial Services (EFSC) is headquartered in Clayton and has experienced a price change of -2.82% this year [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 2.12%, which is lower than the Banks - Midwest industry's yield of 3.14% and the S&P 500's yield of 1.55% [3] Dividend Performance - The current annualized dividend of EFSC is $1.16, reflecting a 9.4% increase from the previous year [4] - Over the past five years, EFSC has increased its dividend three times on a year-over-year basis, achieving an average annual increase of 11.56% [4] - The company's current payout ratio is 23%, indicating that it pays out 23% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - EFSC is projected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $5.20 per share, representing a year-over-year growth rate of 6.56% [5] Investment Appeal - EFSC is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 1 (Strong Buy) [7]

PART I [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, detailing financial position, performance, and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$15.68 billion** as of March 31, 2025, driven by securities and loans, while total deposits saw a slight decrease Balance Sheet Comparison ($'000) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total cash and cash equivalents | $481,670 | $764,170 | | Total loans, net | $11,155,819 | $11,082,405 | | Total assets | $15,676,594 | $15,596,431 | | Total deposits | $13,034,230 | $13,146,492 | | Total liabilities | $13,808,521 | $13,772,429 | | Total stockholders' equity | $1,868,073 | $1,824,002 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income for Q1 2025 increased to **$50.0 million**, a **23.7%** rise year-over-year, with diluted EPS reaching **$1.31** Income Statement Comparison ($'000) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net interest income | $147,516 | $137,728 | | Provision for credit losses | $5,184 | $5,756 | | Total noninterest income | $18,483 | $12,158 | | Total noninterest expense | $99,783 | $93,501 | | Net income | $49,961 | $40,401 | | Diluted EPS | $1.31 | $1.05 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2025 was **$65.3 million**, a positive turnaround from a prior-year loss, primarily due to unrealized gains on available-for-sale securities Comprehensive Income ($'000) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $49,961 | $40,401 | | Other comprehensive income (loss), net of tax | $15,327 | $(14,376) | | **Total comprehensive income** | **$65,288** | **$26,025** | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased to **$1.87 billion** by March 31, 2025, driven by net income and other comprehensive income, partially offset by repurchases and dividends - Key changes in stockholders' equity for Q1 2025 include: +**$49.96 million** from net income, +**$15.3 million** from other comprehensive income, -**$10.7 million** from common stock dividends, and -**$10.6 million** from common stock repurchases[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased by **$282.5 million** in Q1 2025, with cash provided by operations offset by significant cash used in investing activities Cash Flow Summary ($'000) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $40,022 | $29,889 | | Net cash used in investing activities | $(365,743) | $(180,502) | | Net cash provided by financing activities | $43,221 | $87,004 | | **Net decrease in cash and cash equivalents** | **$(282,500)** | **$(63,609)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail investment and loan portfolios, credit quality, including a significant increase in nonperforming loans, and disclose a planned 12-branch acquisition - Nonperforming loans increased significantly to **$109.9 million** at March 31, 2025, from **$42.7 million** at December 31, 2024. The increase is largely attributed to two borrowing relationships that filed for bankruptcy, though the company expects to collect the full balance as the loans are well-secured and guaranteed[50](index=50&type=chunk)[142](index=142&type=chunk) - The company uses interest rate swaps and collars to manage interest rate risk. As of March 31, 2025, it had derivatives with a notional value of **$432.1 million** designated as cash flow hedges[84](index=84&type=chunk) - The company agreed to acquire 12 branches from First Interstate Bank, with approximately **$740 million** in deposits and **$200 million** in loans, with an expected closing in Q4 2025[97](index=97&type=chunk) Key Financial Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Assets | $15.68 billion | $14.61 billion | | Total Liabilities | $13.81 billion | $12.82 billion | | Total Stockholders' Equity | $1.87 billion | $1.73 billion | | Net Income | $50.0 million | $40.4 million | | Diluted EPS | $1.31 | $1.05 | - Subsequent Event: On April 28, 2025, the Bank entered into an agreement to acquire twelve branches from First Interstate Bank, which includes approximately **$740 million** in deposits and **$200 million** in loans. The transaction is expected to close in the early fourth quarter of 2025[97](index=97&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion analyzes Q1 2025 financial performance, highlighting a stable **4.15%** net interest margin, **$1.31** diluted EPS, and robust liquidity and capital Performance Highlights Q1 2025 | Metric | Value | | :--- | :--- | | Diluted EPS | $1.31 | | Return on average assets | 1.30% | | Net interest margin (tax equivalent) | 4.15% | | Nonperforming assets to total assets | 0.72% | | Tangible book value per common share | $38.54 | - The increase in nonperforming loans to **$109.9 million** was primarily related to seven loans across two relationships where the borrowing entities filed for bankruptcy due to a partner dispute. The company expects full collection due to strong collateral and guarantees[142](index=142&type=chunk) - The company announced an agreement to purchase 10 branches in Arizona and two in Kansas from First Interstate Bank, which is expected to close in Q4 2025[110](index=110&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Net interest income (tax-equivalent) for Q1 2025 was **$150.0 million** with a **4.15%** net interest margin, while noninterest income and expense both increased year-over-year Net Interest Margin Analysis | Period | Net Interest Income (Tax-Eq) | Net Interest Margin | | :--- | :--- | :--- | | Q1 2025 | $150.0 million | 4.15% | | Q4 2024 | $148.6 million | 4.13% | | Q1 2024 | $139.8 million | 4.13% | - Noninterest income increased by **$6.3 million** compared to the prior year quarter, primarily due to a **$4.8 million** increase in tax credit income, which benefited from decreased market interest rates improving fair values[122](index=122&type=chunk) - Noninterest expense increased by **$6.3 million** from the prior year quarter, mainly due to a **$2.9 million** increase in employee compensation (merit increases) and a **$3.5 million** increase in deposit costs (higher average balances)[124](index=124&type=chunk) [Financial Condition](index=46&type=section&id=Financial%20Condition) Total assets reached **$15.7 billion** at quarter-end, with loans growing to **$11.3 billion** and deposits decreasing, while nonperforming assets surged to **0.72%** of total assets Loan Portfolio Composition ($'000) | Loan Type | March 31, 2025 | % of Total | | :--- | :--- | :--- | | Commercial and industrial | $4,729,707 | 41.9% | | Commercial real estate - investor owned | $2,673,991 | 23.7% | | Commercial real estate - owner occupied | $2,372,302 | 21.0% | | Construction and land development | $880,708 | 7.8% | | **Total Loans** | **$11,298,763** | **100.0%** | Asset Quality Ratios | Ratio | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Nonperforming loans to total loans | 0.97% | 0.38% | | Nonperforming assets to total assets | 0.72% | 0.30% | | ACL on loans to total loans | 1.27% | 1.23% | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains robust liquidity with **$6.2 billion** in available sources and strong capital, with all regulatory capital ratios significantly exceeding 'well-capitalized' minimums - Total available liquidity sources are **$6.2 billion**, including **$2.9 billion** from the Federal Reserve, **$1.1 billion** from the FHLB, and **$1.6 billion** in unpledged securities[151](index=151&type=chunk)[154](index=154&type=chunk) Regulatory Capital Ratios | Ratio | March 31, 2025 | Well-Capitalized Minimum | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 11.8% | 6.5% | | Tier 1 Capital | 13.1% | 8.0% | | Total Capital | 14.7% | 10.0% | | Leverage Ratio | 11.0% | 5.0% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk, projecting a **3.1%** increase in net interest income from a **+100 bp** rate shock and a **2.5%** decrease from a **-100 bp** shock Net Interest Income Sensitivity Analysis | Rate Shock | Annual % change in net interest income | | :--- | :--- | | +300 bp | 8.9% | | +100 bp | 3.1% | | -100 bp | (2.5)% | | -300 bp | (8.1)% | - The company had **$6.8 billion** in variable rate loans at March 31, 2025, with **$4.7 billion** having an interest rate floor[174](index=174&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[178](index=178&type=chunk) - No material changes to internal controls over financial reporting occurred during the first quarter of 2025[179](index=179&type=chunk) PART II [Item 1. Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, none of which are expected to have a material adverse effect on its financial condition or operations - Management asserts that there are no pending or threatened legal proceedings that would materially impact the company's business, financial condition, or cash flows[181](index=181&type=chunk) [Item 1A. Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since those disclosed in its 2024 Annual Report on Form 10-K - No material changes to the risk factors described in the 2024 Annual Report on Form 10-K have occurred[183](index=183&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **191,739** common shares at **$55.28** per share, with **1,181,483** shares remaining authorized for future repurchase Share Repurchases - Q1 2025 | Period | Total Shares Purchased | Weighted-Average Price Paid | | :--- | :--- | :--- | | January 2025 | 101,739 | $55.24 | | February 2025 | 0 | N/A | | March 2025 | 90,000 | $55.34 | | **Total Q1** | **191,739** | **$55.28** | [Other Items (Defaults, Disclosures, Other Information, Exhibits)](index=60&type=section&id=Other%20Items) This section confirms no defaults on senior securities, no Rule 10b5-1 trading plan changes by officers/directors, and lists filed exhibits - Item 3: No defaults upon senior securities were reported[186](index=186&type=chunk) - Item 5: No officer or director adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[190](index=190&type=chunk)

Core Viewpoint - Enterprise Financial Services (EFSC) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook driven by rising earnings estimates [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - The Zacks rating upgrade reflects an improvement in the earnings outlook for Enterprise Financial Services, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, influencing their buying and selling actions, which in turn affects stock prices [5]. Recent Performance of Enterprise Financial Services - For the fiscal year ending December 2025, Enterprise Financial Services is projected to earn $5.11 per share, reflecting a 4.7% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for the company has risen by 6.6%, indicating a positive trend in earnings estimates [9]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 2 places Enterprise Financial Services in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Company Overview - Enterprise Financial Services (EFSC) is a financial holding company headquartered in Clayton, operating in the Finance sector [3] - The stock has experienced a price decline of 8.39% since the beginning of the year [3] Dividend Information - EFSC currently pays a dividend of $0.29 per share, resulting in a dividend yield of 2.24%, which is lower than the Banks - Midwest industry's yield of 3.28% and the S&P 500's yield of 1.64% [3] - The annualized dividend of $1.16 represents a 9.4% increase from the previous year [4] - Over the past five years, EFSC has increased its dividend three times, averaging an annual increase of 11.56% [4] - The current payout ratio for EFSC is 23%, indicating that the company pays out 23% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - EFSC is projected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $4.93 per share, reflecting a 1.02% increase from the previous year [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - Established firms with stable profits are typically viewed as the best dividend options, while high-growth companies and tech startups rarely offer dividends [7] - Despite challenges during periods of rising interest rates, EFSC is considered a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]

Financial Data and Key Metrics Changes - The company reported earnings per share of $1.31 for Q1 2025, an increase from $1.28 in the previous quarter and $1.05 in Q1 2024 [4][10] - Adjusted return on assets was 1.29% and pre-provision ROAA was 1.71% [4] - Net interest income (NII) reached $1.1 billion, marking the fourth consecutive quarter of NII expansion [4][5] - The net interest margin improved to 4.15% at the end of Q1 2025 [13][19] Business Line Data and Key Metrics Changes - Loan growth for the quarter was 3%, amounting to $78 million, with active production across all markets [5] - The company experienced a seasonal decline in loans related to tax credits, totaling approximately $75 million [5] - Non-interest income for Q1 was $18 million, which included a $1.9 million gain on the sale of SBA loans [16] Market Data and Key Metrics Changes - The Southern California market saw strong loan growth of $60 million, or 13% annualized [7] - National deposit verticals grew by $134 million, approximately 16% annualized in Q1 [8] Company Strategy and Development Direction - The company announced the acquisition of 12 branches from First Interstate Bank, enhancing its commercial banking presence in Arizona [3][19] - The management emphasized a disciplined capital allocation strategy, focusing on share repurchases and M&A opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong financial performance despite potential margin erosion due to interest rate variability [14] - The company anticipates modest loan growth in 2025, focusing on balance sheet growth amid economic uncertainty [40] Other Important Information - The allowance for credit losses was adjusted to 1.27% of total loans, reflecting potential economic conditions [16] - The company repurchased 192,000 shares at an average price of $55.28, returning approximately $11 million to shareholders [18] Q&A Session Summary Question: Terms of the branch deal and purchase price - The acquisition involves assuming approximately $450 million in cash, with expectations of slightly improved margins post-deal [29] Question: Pro forma capital levels post-close and impact on buyback - Pro forma capital is expected to meet targets, allowing for continued share repurchases and M&A activity [31][32] Question: Industry exposures from the loans brought over - The company confirmed no dairy exposure in the transaction, focusing on attractive loan opportunities [35] Question: Timing for exiting non-performing loans - Management indicated that while timing is uncertain, they are confident in the ability to collect on secured loans [54] Question: Outlook on net interest income and margin - Management expects net interest income to remain stable despite potential margin declines, with proactive measures in place [44][52] Question: Quarterly cadence for expenses - The company anticipates stable deposit costs and a gradual increase in expenses aligned with seasonal trends [47] Question: Efficiency ratio of branch operations - The efficiency ratio for the acquired branches is expected to be in the range of 52% to 54% [49]

Financial Data and Key Metrics Changes - The company reported earnings of $1.31 per diluted share, an increase from $1.28 in the previous quarter and $1.05 in Q1 2024, resulting in an adjusted return on assets of 1.29% and a pre-provision ROAA of 1.71% [5][10] - Net interest income (NII) reached $1,100,000, marking the fourth consecutive quarter of NII expansion despite two fewer days in the quarter [5][6] - The net interest margin improved to 4.15%, with expectations of slightly stronger performance for 2025, although modest erosion of margin is anticipated throughout the year [14][15] Business Line Data and Key Metrics Changes - Loan growth for the quarter was 3% or $78,000,000, with active production across all markets, although net growth was impacted by a $30,000,000 sale of SBA loans and a seasonal decline in tax credit loans totaling approximately $75,000,000 [6][10] - Non-interest income for Q1 was $18,000,000, including a $1,900,000 gain on the sale of SBA loans, which partially offset a decrease in tax credit income [17] Market Data and Key Metrics Changes - The Western market of Southern California experienced a strong quarter with $60,000,000 or 13% annualized loan growth, driven by refinancing loans for fully occupied medical and mixed-use properties [8][9] - Total client deposits, excluding brokered funds, increased by 7.7% year-over-year, with national deposit verticals growing by $134,000,000 or roughly 16% annualized in Q1 [9] Company Strategy and Development Direction - The company announced the acquisition of 12 branches from First Interstate Bank, enhancing its commercial banking presence, particularly in Arizona [4][20] - The management emphasized a disciplined capital allocation strategy, focusing on share repurchases and M&A opportunities to create shareholder value [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong financial performance despite economic uncertainties, with a focus on balance sheet growth and attracting new relationships [39] - The company anticipates modest erosion of net interest margin due to recent interest rate variability but remains committed to mitigating this through disciplined pricing [15][45] Other Important Information - The company’s tangible common equity ratio increased to 9.3%, and tangible book value rose by 14% on an annualized basis to $38.54 [20] - A succession plan was announced, with Scott Goodman transitioning to a part-time role, and Doug Bauche promoted to Chief Banking Officer [22][23] Q&A Session Summary Question: Terms of the branch deal and purchase price - The acquisition involves assuming approximately $450,000,000 in cash, with expectations of a similar to slightly improved margin post-deal [29] Question: Pro forma capital levels post-close and impact on buyback - Pro forma capital is expected to meet targets, allowing for continued share repurchases alongside the transaction [31][32] Question: Industry exposures from the loans brought over - The company confirmed no dairy exposure was included in the transaction [34] Question: Organic loan growth outlook for 2025 - Management anticipates mid-single-digit growth, with potential for increased activity in the second half of the year [39] Question: Margin outlook and ability to defend current levels - The company expects a slight sequential decline in margin but remains optimistic about net interest income growth [44][45] Question: Timing for resolution of non-performing loans - Management indicated that while timing is uncertain, they are confident in the ability to collect on the loans due to strong collateral [56][58] Question: Expense cadence and impact from the branch deal - The efficiency ratio for the branch operations is expected to be in the 52% to 54% range, with minimal recurring fees anticipated [49][74]

Exhibit 99.2 Enterprise Financial Services Corp 2025 First Quarter Earnings Webcast Forward-Looking Statements Some of the information in this report may contain "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 may include projections based on management's current expectations and beliefs concerning future developments and their potential effects on the Company ...