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]

Financial Performance - Net income for Q2 2025 was $51.4 million, or $1.36 per diluted common share, an increase from $1.31 in the previous quarter and $1.19 in the same quarter last year[3]. - Net income for Q2 2025 was $51.384 million, up from $49.961 million in Q1 2025 and $45.446 million in Q2 2024, representing a year-over-year growth of 13.1%[40]. - Diluted earnings per common share increased to $1.36 in Q2 2025, compared to $1.31 in Q1 2025 and $1.19 in Q2 2024, reflecting a year-over-year increase of 14.6%[40]. - Basic earnings per common share for the quarter was $1.36, compared to $1.33 in the previous quarter, indicating a 2.3% increase[43]. - The effective tax rate for Q2 2025 was 20.0%, compared to 18.1% in Q1 2025 and 20.5% in Q2 2024[23]. Revenue and Income Sources - Net interest income for Q2 2025 was $152.8 million, an increase of $5.2 million from the linked quarter and $12.2 million from the prior year quarter[9]. - Noninterest income for Q2 2025 was $20.6 million, up $2.1 million from the previous quarter, primarily due to higher BOLI income[6]. - Total noninterest income for Q2 2025 was $20.604 million, an increase of $2.1 million (11%) from Q1 2025 and $5.1 million (33%) from Q2 2024[19]. - Deposit service charges increased by $520,000 (12%) from Q1 2025 and $398,000 (9%) from Q2 2024, contributing to the rise in noninterest income[19]. - Other income rose by $2.03 million (32%) from Q1 2025 and $4.44 million (111%) from Q2 2024, driven primarily by an increase in BOLI income and community development investment income[20]. Asset and Loan Growth - Total loans reached $11.4 billion, reflecting a quarterly increase of $110.1 million, or 4% on an annualized basis[4][6]. - Total loans reached $11.4 billion at June 30, 2025, up $110.1 million from the linked quarter, with loan production of $875.5 million outpacing repayments of $765.4 million[14]. - Average loans for the quarter ended June 30, 2025, were $11,358,209 thousand, up from $10,962,488 thousand in the same quarter of 2024, an increase of 3.61%[49]. - Total interest-earning assets increased to $14,737,381 thousand for the six months ended June 30, 2025, up from $13,640,515 thousand in the same period of 2024, representing an increase of 8.06%[47]. Deposit and Funding - Total deposits increased to $13.3 billion, up $283.1 million from the previous quarter, with noninterest-bearing deposits accounting for 32% of total deposits[4][6]. - Total deposits increased to $13,317,359,000 from $13,034,230,000 in the previous quarter, marking a growth of 2.2%[45]. - The cost of deposits was 1.82% in Q2 2025, a decrease from 1.83% in the linked quarter[11]. - Noninterest-bearing demand accounts increased to $4,322,332 thousand as of June 30, 2025, compared to $3,928,308 thousand a year ago, representing a rise of 10.04%[49]. Credit Quality and Losses - The allowance for credit losses to total loans was 1.27%, with a provision for credit losses of $3.5 million in Q2 2025[6]. - The provision for credit losses was $3.5 million in Q2 2025, down from $5.2 million in the linked quarter, primarily due to loan growth[16]. - Nonperforming loans were $105.8 million, representing 0.93% of total loans, a slight decrease from 0.97% in the linked quarter[15]. - Net charge-offs for the quarter ended June 30, 2025, were $630,000, compared to recoveries of $(1,059,000) in the previous quarter[51]. Capital and Equity - Total equity increased to $1.92 billion at June 30, 2025, up $54.8 million from the linked quarter[26]. - The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities was 9.06% at June 30, 2025, compared to 8.94% at March 31, 2025[13]. - The company continues to exceed the "well-capitalized" regulatory benchmark with a total risk-based capital ratio of 14.7%[27]. - Stockholders' equity increased to $1,906,089 thousand as of June 30, 2025, compared to $1,748,240 thousand a year earlier, reflecting a growth of 9.03%[49]. Operational Efficiency - The core efficiency ratio for Q2 2025 was 59.3%, compared to 58.8% for Q1 2025 and 58.1% for Q2 2024[22]. - The efficiency ratio for Q2 2025 was 60.97%, slightly higher than 60.11% in Q1 2025, but improved from 60.26% in Q2 2024[40]. - Employee compensation and benefits rose by $1.96 million (4%) from Q1 2025 and $5.64 million (13%) from Q2 2024, primarily due to merit increases and an increase in variable compensation[21]. Interest Rates and Margins - Net interest margin (NIM) improved to 4.21%, a quarterly increase of 6 basis points, with net interest income rising to $152.8 million, up $5.2 million from the previous quarter[3][6]. - The average interest rate of new loan originations in Q2 2025 was 7.26%, an increase of 14 basis points from the linked quarter[10]. - The average interest rate of deposits declined due to lower short-term rates, partially offset by an increase in deposit balances[9]. - The net interest margin improved slightly to 4.21% for the quarter ended June 30, 2025, compared to 4.19% in the previous year[49].

Core Viewpoint - Enterprise Financial Services (EFSC) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on July 28, and if the key numbers exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus estimate for EFSC's quarterly earnings is $1.20 per share, reflecting a year-over-year decrease of 0.8%, while revenues are projected to be $163.2 million, an increase of 4.6% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections [4]. - For EFSC, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.56%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a positive ESP being a strong predictor of an earnings beat [9][10]. - EFSC's current Zacks Rank is 4, which complicates the prediction of an earnings beat [12][13]. Historical Performance - In the last reported quarter, EFSC was expected to post earnings of $1.17 per share but actually delivered $1.31, resulting in a surprise of +11.97% [14]. - Over the past four quarters, EFSC has consistently beaten consensus EPS estimates [15]. Industry Comparison - Another player in the Midwest banking industry, 1st Source (SRCE), is expected to report earnings of $1.49 per share, unchanged from the previous year, with revenues projected at $106 million, up 9% [20]. - 1st Source has a higher Most Accurate Estimate leading to an Earnings ESP of +0.34% and a Zacks Rank of 2, indicating a strong likelihood of beating the consensus EPS estimate [20][21].

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 ...