Core Insights - Enterprise Financial Services (EFSC) reported a revenue of $166 million for the quarter ended March 2025, reflecting a year-over-year increase of 10.8% [1] - The earnings per share (EPS) for the quarter was $1.31, up from $1.07 in the same quarter last year, surpassing the consensus EPS estimate of $1.17 by 11.97% [1] - The reported revenue exceeded the Zacks Consensus Estimate of $160.06 million, resulting in a revenue surprise of 3.71% [1] Financial Performance Metrics - Efficiency Ratio stood at 60.1%, better than the average estimate of 61.1% from three analysts [4] - Net Interest Margin was reported at 4.2%, slightly above the average estimate of 4.1% from three analysts [4] - Total nonperforming loans amounted to $109.88 million, significantly higher than the average estimate of $44.79 million from two analysts [4] - Average Balance of Total Interest Earning Assets was $14.65 billion, exceeding the average estimate of $14.57 billion from two analysts [4] - Net charge-offs to average loans were reported at 0%, better than the average estimate of 0.2% from two analysts [4] - Total Noninterest Income reached $18.48 million, surpassing the average estimate of $16.04 million from three analysts [4] - Net Interest Income was reported at $147.52 million, above the average estimate of $144 million from two analysts [4] - Deposit service charges totaled $4.42 million, slightly higher than the average estimate of $4.37 million from two analysts [4] - Tax credit income was $2.61 million, exceeding the average estimate of $1.75 million from two analysts [4] - Net interest income (FTE) was reported at $149.99 million, compared to the average estimate of $146.43 million from two analysts [4] - Wealth management income was $2.66 million, below the average estimate of $2.87 million from two analysts [4] Stock Performance - Shares of Enterprise Financial Services have returned -4.7% over the past month, compared to a -4.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Enterprise Financial Services (EFSC) reported quarterly earnings of $1.31 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, and up from $1.07 per share a year ago, representing an earnings surprise of 11.97% [1] - The company posted revenues of $166 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.71%, compared to year-ago revenues of $149.89 million [2] - Over the last four quarters, EFSC has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - EFSC shares have declined approximately 9% since the beginning of the year, while the S&P 500 has decreased by 6.1% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $1.18 on revenues of $161.76 million, and $4.93 on revenues of $656.19 million for the current fiscal year [7] - The Zacks Industry Rank for Banks - Midwest, which includes EFSC, is currently in the top 18% of over 250 Zacks industries, indicating a favorable industry outlook [8] Group 3: Future Earnings Estimates - The trend of estimate revisions for EFSC is mixed, leading to a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - The upcoming earnings call will be crucial for understanding management's commentary on future earnings expectations [3][4]

[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Enterprise Financial Services Corp (EFSC) reported strong Q1 2025 financial results, driven by expanded net interest income and margin, alongside strategic branch acquisitions and robust capital management [Overview](index=1&type=section&id=Overview) Enterprise Financial Services Corp (EFSC) reported a strong start to 2025, with net income of $50.0 million, or $1.31 per diluted share, driven by proactive balance sheet management leading to an expansion in both net interest income ($147.5 million) and net interest margin (4.15%), achieving a 1.30% ROAA and a 14.02% ROATCE - The President and CEO highlighted a positive start to 2025, attributing the success to proactive management of the balance sheet and deposit costs, which led to expanded net interest income and NIM, with a key strategic move being the announced acquisition of 12 branches from First Interstate Bank to accelerate growth in Arizona and Kansas[1](index=1&type=chunk) Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Change from Linked Qtr (Q4 2024) | Change from Prior Year Qtr (Q1 2024) | | :--- | :--- | :--- | :--- | | Net Income | $50.0 million | +$1.1 million | +$9.6 million | | Diluted EPS | $1.31 | +$0.03 | +$0.26 | | Net Interest Income | $147.5 million | +$1.1 million | +$9.8 million | | Net Interest Margin (NIM) | 4.15% | +2 bps | +2 bps | | Total Loans | $11.3 billion | +$78.4 million | +$270.3 million | | Total Deposits | $13.0 billion | -$112.3 million | +$780.5 million | | ROAA | 1.30% | +3 bps | +18 bps | | ROATCE | 14.02% | +39 bps | +171 bps | | Tangible Book Value/Share | $38.54 | +$1.27 | +$4.33 | - Pre-provision net revenue (PPNR) was **$66.1 million**, a decrease of **$3.4 million** from the linked quarter due to seasonally lower tax credit income and higher payroll-related expenses, but PPNR increased by **$8.7 million** year-over-year, driven by higher net interest income[4](index=4&type=chunk) [Key Business and Capital Activities](index=2&type=section&id=Key%20Business%20and%20Capital%20Activities) The company announced a significant branch acquisition agreement with First Interstate Bank to purchase 12 branches, strengthening its presence in Arizona and Kansas, while capital management activities included returning capital to shareholders through dividends and stock repurchases, with the quarterly dividend increased to $0.30 per share - EFSC signed a purchase and assumption agreement to acquire **10 branches in Arizona** and **two in Kansas** from First Interstate Bank, with the transaction expected to close by early Q4 2025, subject to regulatory approval[5](index=5&type=chunk) - The company returned **$21.3 million** to stockholders in Q1 2025, consisting of **$10.6 million** in common stock repurchases and **$10.7 million** in common dividends[3](index=3&type=chunk) - The Board of Directors increased the quarterly common stock dividend by **$0.01** to **$0.30 per share** for the second quarter of 2025[3](index=3&type=chunk)[6](index=6&type=chunk) - The company's capital position remains strong, with Enterprise Bank & Trust being "well-capitalized," and the tangible common equity to tangible assets ratio improved to **9.30%** at March 31, 2025, up from **9.05%** at December 31, 2024[6](index=6&type=chunk) [Detailed Financial Analysis](index=4&type=section&id=Detailed%20Financial%20Analysis) This section provides an in-depth analysis of key financial components, including net interest income, loan and deposit trends, asset quality, and capital position, highlighting drivers of performance and changes from prior periods [Net Interest Income and Net Interest Margin (NIM)](index=4&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20%28NIM%29) Net interest income rose to $147.5 million, and the tax-equivalent Net Interest Margin (NIM) expanded by 2 basis points to 4.15% compared to the linked quarter, driven by organic loan growth and a 17 basis point sequential decrease in the total cost of deposits to 1.83%, which more than offset a decline in asset yields caused by lower short-term interest rates Net Interest Income and Margin Performance | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $147.5M | $146.4M | $137.7M | | Net Interest Margin (TE) | 4.15% | 4.13% | 4.13% | | Total Cost of Deposits | 1.83% | 2.00% | 2.13% | - The increase in NII from both linked and prior year quarters was attributed to organic loan growth, investments in the securities portfolio, and proactive management of deposit costs in response to a 100 basis point reduction in the federal funds target rate since September 2024[10](index=10&type=chunk) - Interest expense decreased by **$4.7 million** from the linked quarter, primarily due to a **19 basis point** decline in the average cost of interest-bearing deposits[12](index=12&type=chunk) [Investments](index=6&type=section&id=Investments) The investment securities portfolio grew by $233.1 million from the linked quarter to a total of $3.0 billion at March 31, 2025, with the tangible common equity to tangible assets ratio, when adjusted for unrealized losses on held-to-maturity securities, standing at 8.94%, an improvement from 8.71% in the previous quarter Investment Securities Portfolio (at March 31, 2025) | Category | Carrying Value | Amortized Cost | Net Unrealized Loss | | :--- | :--- | :--- | :--- | | Available-for-sale (AFS) | $1,862,270 | $1,990,068 | $(146,184) | | Held-to-maturity (HTM) | $928,935 | $1,034,282 | $(74,228) | | **Total** | **$2,791,205** | **$3,024,350** | **$(220,412)** | [Loans](index=7&type=section&id=Loans) Total loans reached $11.3 billion, marking a $78.4 million increase (3% annualized) from the previous quarter, with growth led by the C&I portfolio, where new loan production of $846.5 million outpaced repayment activity, and the portfolio's rate structure remained stable, with 61% of loans being variable rate Loan Portfolio Composition | Loan Category | Balance at Mar 31, 2025 | Balance at Dec 31, 2024 | | :--- | :--- | :--- | | C&I | $2,198.8M | $2,139.0M | | CRE investor owned | $2,487.4M | $2,405.4M | | CRE owner occupied | $1,292.2M | $1,305.0M | | SBA loans | $1,283.1M | $1,298.0M | | **Total Loans** | **$11,298.8M** | **$11,220.4M** | - Loan growth was driven by originations and advances of **$846.5 million**, which exceeded repayments of **$768.1 million**, with growth partially offset by **$31.3 million** in SBA loan sales[16](index=16&type=chunk) - The loan portfolio consists of **39% fixed-rate loans** and **61% variable-rate loans**, and after adjusting for interest rate hedges, variable-rate loans constitute **56%** of the total portfolio[16](index=16&type=chunk) [Asset Quality](index=8&type=section&id=Asset%20Quality) Asset quality metrics saw a significant increase in nonperforming assets (NPAs), which rose to $113.2 million or 0.72% of total assets, up from 0.30% in the linked quarter, primarily driven by seven well-secured commercial real estate loans to two related borrowing relationships in Southern California that filed for bankruptcy due to a partner dispute, yet the company reported net recoveries for the quarter and maintained an allowance for credit losses to total loans at 1.27% Asset Quality Ratios | Metric | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Nonperforming Assets | $113.2M | $46.6M | $44.1M | | Nonperforming Assets to Total Assets | 0.72% | 0.30% | 0.30% | | Allowance for Credit Losses to Total Loans | 1.27% | 1.23% | 1.23% | | Quarterly Net Charge-offs (Recoveries) | $(1.1M) | $7.1M | $5.9M | - The increase in NPAs is largely attributed to two borrowing relationships with a common general partner, involving seven loans totaling **$68.4 million**, where the entities filed for bankruptcy due to a business dispute[5](index=5&type=chunk)[17](index=17&type=chunk) - The company expects to collect the full balance of these nonperforming loans as they are well-secured by real estate with loan-to-value ratios ranging from **39% to 79%** and include substantial personal guarantees, consequently, no individual reserves were placed on these loans[17](index=17&type=chunk)[18](index=18&type=chunk) - The provision for credit losses was **$5.2 million** for the quarter, primarily related to changes in default assumptions, economic forecasts, and loan growth[18](index=18&type=chunk) [Deposits](index=9&type=section&id=Deposits) Total deposits decreased by $112.3 million to $13.0 billion at quarter-end, a change primarily attributed to a seasonal decline in noninterest-bearing commercial deposits used for tax and bonus payments, but despite the quarterly drop, deposits grew by $780.5 million year-over-year, with noninterest-bearing deposits constituting 33% of the total deposit portfolio Deposit Portfolio Composition | Deposit Type | Balance at Mar 31, 2025 | Balance at Dec 31, 2024 | | :--- | :--- | :--- | | Noninterest-bearing demand | $4,285.1M | $4,484.1M | | Interest-bearing demand | $3,193.9M | $3,175.3M | | Money market and savings | $4,167.4M | $4,117.5M | | Certificates of deposit | $1,387.9M | $1,369.6M | | **Total Deposits** | **$13,034.2M** | **$13,146.5M** | - The quarterly decrease was mainly in noninterest-bearing commercial deposits, which typically decline early in the year, and excluding brokered CDs, deposits decreased by **$169.8 million** from the linked quarter[19](index=19&type=chunk) - The loan-to-deposit ratio was **87%** at March 31, 2025[5](index=5&type=chunk) [Noninterest Income](index=9&type=section&id=Noninterest%20Income) Total noninterest income was $18.5 million, a $2.1 million decrease from the linked quarter but a $6.3 million increase year-over-year, with the sequential decline driven by a seasonal drop in tax credit income, partially offset by a $1.9 million gain on the sale of SBA loans, and the year-over-year increase primarily due to improved fair value on certain tax credits Noninterest Income Components | Component | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Deposit service charges | $4.4M | $4.7M | $4.4M | | Wealth management revenue | $2.7M | $2.7M | $2.5M | | Tax credit income (loss) | $2.6M | $6.0M | $(2.2M) | | Other income | $6.4M | $4.7M | $5.0M | | **Total Noninterest Income** | **$18.5M** | **$20.6M** | **$12.2M** | - The decrease from the linked quarter was mainly due to a seasonal decline in tax credit income, which is typically highest in the fourth quarter[21](index=21&type=chunk) - Other income increased from both linked and prior year quarters, primarily driven by a **$1.9 million** gain on the sale of the guaranteed portion of SBA loans in Q1 2025[23](index=23&type=chunk) [Noninterest Expense](index=10&type=section&id=Noninterest%20Expense) Noninterest expense was $99.8 million, nearly flat compared to the linked quarter but up $6.3 million year-over-year, with the sequential stability due to a $2.0 million increase in employee compensation (from seasonal payroll tax resets and merit increases) being offset by a $1.9 million decline in core conversion costs following project completion in Q4 2024, resulting in a core efficiency ratio of 58.8% Noninterest Expense Components | Component | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Employee compensation & benefits | $48.2M | $46.2M | $45.3M | | Deposit costs | $23.8M | $22.9M | $20.3M | | Core conversion expense | $0 | $1.9M | $0.4M | | Other expense | $23.3M | $24.2M | $22.7M | | **Total Noninterest Expense** | **$99.8M** | **$99.5M** | **$93.5M** | - Employee compensation increased by **$2.0 million** from the linked quarter due to the reset of payroll taxes, paid time-off accruals, and annual merit increases[25](index=25&type=chunk) - Core conversion expenses were eliminated in Q1 2025 following the completion of the core migration in Q4 2024[25](index=25&type=chunk) [Income Taxes](index=11&type=section&id=Income%20Taxes) The effective tax rate for the first quarter was 18.1%, a notable decrease from 19.5% in the linked quarter and 20.2% in the prior year quarter, attributed to the successful deployment of tax credit opportunities as part of the company's tax planning strategy - The effective tax rate was **18.1%** in Q1 2025, compared to **19.5%** in Q4 2024 and **20.2%** in Q1 2024[26](index=26&type=chunk) - The decrease in the effective tax rate was driven by tax credit opportunities utilized in the company's tax planning strategy[26](index=26&type=chunk) [Capital](index=11&type=section&id=Capital) Capital levels remained robust, with total equity increasing by $44.1 million to $1.9 billion, and all regulatory capital ratios exceeded "well-capitalized" benchmarks, with the Common Equity Tier 1 ratio at 11.8%, while tangible book value per common share increased to $38.54, and the company repurchased 191,739 shares during the quarter Key Capital Ratios | Ratio | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total risk-based capital | 14.7% | 14.6% | | Common equity tier 1 capital | 11.8% | 11.8% | | Tangible common equity to tangible assets | 9.30% | 9.05% | - Tangible book value per common share was **$38.54** at March 31, 2025, up from **$37.27** at December 31, 2024[28](index=28&type=chunk) - The company repurchased **191,739 shares** for **$55.28** in the first quarter and has **1,181,483 shares** remaining under its repurchase plan[28](index=28&type=chunk) [Consolidated Financial Statements and Reconciliations](index=15&type=section&id=Consolidated%20Financial%20Statements%20and%20Reconciliations) This section presents unaudited consolidated financial statements, including income statements, balance sheets, and detailed portfolio data, along with reconciliations of non-GAAP financial measures [Consolidated Financial Summary](index=15&type=section&id=Consolidated%20Financial%20Summary) This section provides a five-quarter unaudited summary of the company's key financial results, including earnings, performance ratios, per-share data, and key balance sheet metrics - The table presents a consolidated financial summary for the five quarters ending March 31, 2025, covering earnings, performance ratios (ROAA, ROATCE, etc.), and capital ratios[42](index=42&type=chunk) [Consolidated Income Statements](index=16&type=section&id=Consolidated%20Income%20Statements) This section contains the detailed unaudited consolidated income statements for the five quarters ending March 31, 2025, showing the components of net interest income, noninterest income, and noninterest expense - The table provides detailed line items for the consolidated income statements over the last five quarters, from interest income down to net income available to common stockholders[44](index=44&type=chunk) [Consolidated Balance Sheet](index=17&type=section&id=Consolidated%20Balance%20Sheet) This section presents the detailed unaudited consolidated balance sheets as of the end of the last five quarters, detailing assets, liabilities, and stockholders' equity - The table provides detailed line items for the consolidated balance sheet over the last five quarters, including assets like loans and investments, and liabilities like deposits and borrowings[46](index=46&type=chunk) [Portfolio Details and Average Balances](index=18&type=section&id=Portfolio%20Details%20and%20Average%20Balances) This section offers a more granular look at the loan and deposit portfolios by category for the last five quarters, and also includes average balances for key assets and liabilities, and the corresponding tax-equivalent yields - The tables provide a five-quarter breakdown of the loan portfolio (e.g., Commercial and industrial, Commercial real estate) and the deposit portfolio (e.g., Noninterest-bearing, Money market)[48](index=48&type=chunk) - Average balances and tax-equivalent yields for loans, securities, deposits, and other interest-bearing liabilities are presented for the last five quarters[48](index=48&type=chunk) [Asset Quality and Other Metrics](index=19&type=section&id=Asset%20Quality%20and%20Other%20Metrics) This section provides a five-quarter summary of key asset quality data, including net charge-offs, nonperforming loans, and allowance ratios, and also includes data on wealth management assets and per-share metrics - The tables detail asset quality trends over five quarters, including nonperforming loans to total loans and allowance for credit losses to nonperforming loans[50](index=50&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=20&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations for the non-GAAP financial measures used in the report, such as Core Efficiency Ratio, Tangible Common Equity, ROATCE, and PPNR, to their most directly comparable GAAP measures for the last five quarters - Provides a detailed reconciliation of the Core Efficiency Ratio by adjusting GAAP revenue and expenses for specific items like tax-equivalent adjustments and core conversion costs[52](index=52&type=chunk) - Reconciles stockholders' equity (GAAP) to tangible common equity (non-GAAP) by deducting preferred stock, goodwill, and intangible assets, which is then used to calculate tangible book value per share[52](index=52&type=chunk) - Shows the calculation of adjusted net income and its use in determining non-GAAP performance ratios like adjusted ROATCE and adjusted diluted EPS[53](index=53&type=chunk) [Other Information](index=12&type=section&id=Other%20Information) This section provides important supplementary information, including the rationale for using non-GAAP financial measures, details for the Q1 2025 earnings conference call, and a cautionary statement regarding forward-looking information [Use of Non-GAAP Financial Measures](index=12&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company explains its use of non-GAAP financial measures, such as PPNR, ROATCE, and tangible common equity ratios, as management believes these core performance measures provide supplemental information to evaluate operating performance by excluding certain non-comparable items - The company uses non-GAAP measures to provide supplemental information to investors for evaluating operating performance on an ongoing basis[30](index=30&type=chunk)[31](index=31&type=chunk) [Conference Call and Webcast Information](index=12&type=section&id=Conference%20Call%20and%20Webcast%20Information) The company will host a conference call and webcast on Tuesday, April 29, 2025, at 10:00 a.m. Central Time to review the first quarter 2025 results, with access details provided via the company's investor relations website and a toll-free number - A conference call to discuss Q1 2025 results is scheduled for April 29, 2025, at 10:00 a.m. Central Time[33](index=33&type=chunk) [Forward-Looking Statements](index=13&type=section&id=Forward-Looking%20Statements) This section contains the standard "safe harbor" disclosure, cautioning readers that the press release includes forward-looking statements based on current management expectations, which are subject to numerous risks and uncertainties, and actual results could differ materially from those anticipated - The report contains forward-looking statements regarding revenue, growth, and financial performance, which are subject to risks and uncertainties[36](index=36&type=chunk) - Key risk factors include the ability to integrate acquisitions, credit risk, interest rate changes, economic conditions, and regulatory changes[37](index=37&type=chunk)

Company Overview - Enterprise Financial Services (EFSC) is based in Clayton and operates in the Finance sector, with shares experiencing a price change of -18.09% this year [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 2.51%, which is lower than the Banks - Midwest industry's yield of 3.47% and the S&P 500's yield of 1.68% [3] Dividend Performance - EFSC's current annualized dividend of $1.16 has increased by 9.4% from the previous year [4] - Over the past 5 years, the company has raised its dividend 3 times year-over-year, achieving an average annual increase of 11.56% [4] - The current payout ratio for EFSC is 23%, indicating that the company paid out 23% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for EFSC's earnings per share for 2025 is $4.93, reflecting a year-over-year growth rate of 1.02% [5] Investment Considerations - EFSC is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is positioned as a strong dividend play, appealing to income investors despite the general trend of high-yielding stocks struggling during periods of rising interest rates [7]

Group 1: Company Overview - Enterprise Financial Services (EFSC) is a financial holding company headquartered in Clayton, with a year-to-date price change of -1.38% [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 2.09%, which is lower than the Banks - Midwest industry's yield of 3.24% and the S&P 500's yield of 1.56% [3] Group 2: Dividend Performance - EFSC's annualized dividend of $1.16 has increased by 9.4% from the previous year [4] - Over the last five years, the company has raised its dividend five times, achieving an average annual increase of 11.14% [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] Group 3: Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate for EFSC's earnings is projected at $4.93 per share, reflecting a year-over-year growth rate of 1.02% [5] Group 4: Investment Considerations - EFSC is considered an attractive investment opportunity due to its dividend offerings and a strong Zacks Rank of 1 (Strong Buy) [7]

Group 1: Stock Highlights - Reddit, Inc. (RDDT) has a Zacks Rank 1 with a 73.1% increase in the consensus estimate for current year earnings over the last 60 days [1] - GBank Financial Holdings Inc. (GBFH) also holds a Zacks Rank 1, with a 7.1% increase in the consensus estimate for current year earnings over the last 60 days [2] - Enterprise Financial Services Corp (EFSC) maintains a Zacks Rank 1, with an 8.1% increase in the consensus estimate for current year earnings over the last 60 days [3] Group 2: Stock Performance - Reddit's shares have gained 87.8% over the last six months, significantly outperforming the S&P 500's advance of 0.2% [1] - GBank's shares increased by 2.4% over the last three months, while the S&P 500 declined by 4.5% [2] - Enterprise Financial's shares rose by 11% over the last six months, compared to the S&P 500's advance of 0.2% [3] Group 3: Momentum Scores - Reddit possesses a Momentum Score of A, indicating strong momentum characteristics [1] - GBank has a Momentum Score of B, reflecting moderate momentum [2] - Enterprise Financial also holds a Momentum Score of B, suggesting similar moderate momentum [3]

Group 1: Stocks Added to Zacks Rank 1 (Strong Buy) List - Tokio Marine (TKOMY) has seen a 17.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - PRA Group (PRAA) has experienced a 12.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Enterprise Financial Services (EFSC) has recorded a 9.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - National Fuel Gas Company (NFG) has seen a 7.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Urban Outfitters (URBN) has experienced a 7.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

Core Viewpoint - Enterprise Financial Services (EFSC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for EFSC indicates expected earnings of $4.98 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 2.1% [9]. - Over the past three months, analysts have raised their earnings estimates for EFSC by 9.6%, showcasing a positive trend in earnings outlook [9]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, with a strong correlation between earnings estimate revisions and stock price movements [2][5]. - The Zacks Rank system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - EFSC's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Financial Performance and Strategy - The company was awarded $60.0 million and $50.0 million in New Markets Tax Credit allocations for 2023 and 2024, respectively, bringing the total allocations to $353.0 million[27]. - The company focuses on specialized lending niches, including SBA 7(a) loans, life insurance premium finance, and tax credit related lending, which enhances its competitive advantage[26]. - The efficiency ratio, which measures noninterest expense divided by total revenue, is a key metric for the company's expense management strategy[31]. - The company emphasizes a relationship-driven growth strategy, targeting privately-held businesses and their owner families[23]. - The company maintains a disciplined approach to acquisitions, which has significantly contributed to its growth and expansion[31]. - The company offers a broad range of treasury management products and services, generating significant fee income[28]. - The company operates in highly competitive markets, facing competition from various financial institutions and fintech companies[32]. Regulatory Compliance and Capital Requirements - The company has more than $10 billion in assets, making it subject to examination by the Consumer Financial Protection Bureau (CFPB)[34]. - The company is subject to regulation and supervision by the Federal Reserve and the FDIC, ensuring compliance with banking regulations[33]. - The Company is required to maintain a Common Equity Tier 1 (CET1) capital ratio of 7.0% to avoid restrictions on capital distributions[59]. - All of the Bank's capital ratios were at levels that qualify it to be "well-capitalized" for regulatory purposes as of December 31, 2024[62]. - The Company must continue to be considered well-managed and well-capitalized by the Federal Reserve to remain a financial holding company[40]. - The Federal Reserve requires prior approval for the Company to acquire substantially all the assets of any bank or to merge with another bank holding company[41]. - The Company is subject to capital requirements established by the Federal Reserve, which are applied on a consolidated basis[45]. - The Dodd-Frank Act requires bank holding companies to serve as a source of strength for their subsidiary depository institutions[44]. - The Bank is subject to extensive federal and state regulatory oversight, including capital adequacy standards set by the FDIC[54]. - The Bank's payment of dividends is subject to statutory and regulatory limitations, including the requirement to maintain capital above regulatory guidelines[71]. Consumer Protection and Compliance - The CFPB has broad rule-making authority that may significantly impact consumer mortgage lending and servicing, particularly with new regulations on mortgage origination standards[66]. - The Bank is subject to various consumer protection laws, including the Truth in Lending Act and the Fair Credit Reporting Act, which mandate disclosure requirements and regulate customer interactions[67]. - The USA PATRIOT Act requires the establishment of an anti-money laundering program and due diligence policies for financial institutions[79]. - The proposed rule by FinCEN in June 2024 aims to amend AML/CFT program requirements, including risk assessment processes for financial institutions[78]. - The FDIC's proposed rulemaking in September 2023 aims to establish standards for corporate governance and risk management for banks with total consolidated assets of $10 billion or more[84]. Employee and Workplace Policies - As of December 31, 2024, the company employed 1,218 regular full-time and 38 part-time associates[87]. - Approximately 67% of associates are eligible for the Short Term Incentive Plan (STIP), which aligns compensation with performance[90]. - The company's minimum wage is set at $17 per hour, ensuring all associates earn above this threshold[91]. - The company has been recognized as one of the "Best Banks to Work for" for seven consecutive years, ranking fourth among similar financial institutions in 2024[93]. - The company offers a comprehensive benefits package, including 401(k), paid time off, and wellness programs[92]. - The Career Acceleration Program provides training in credit and commercial banking, with successful participants placed in roles that match their strengths[98]. - The company emphasizes a safe and healthy workplace, adhering to local, state, and federal safety regulations[96]. - The Belonging & Inclusion Council aims to foster an inclusive environment and improve diversity within the workforce[95]. - The company conducts annual talent reviews to identify high-performing associates and future leaders[88]. - The company regularly compares compensation and benefits with peer companies to maintain competitiveness[89].

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, capitalizing on established price movements [1] - Enterprise Financial Services (EFSC) currently holds a Momentum Style Score of B, indicating strong potential based on price changes and earnings estimate revisions [2][8] - EFSC has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market in the near term [3] Performance Metrics - EFSC shares have increased by 0.97% over the past week, outperforming the Zacks Banks - Midwest industry, which rose by 0.22% [5] - Over the last month, EFSC's price change is 9.8%, compared to the industry's 8.08% [5] - In the last quarter, EFSC shares rose by 2.34%, and over the past year, they have gained 47.08%, while the S&P 500 increased by only 1.46% and 22.19%, respectively [6] Trading Volume - The average 20-day trading volume for EFSC is 146,000 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Estimates - In the past two months, three earnings estimates for EFSC have been revised upwards, increasing the consensus estimate from $4.54 to $4.84 [9] - For the next fiscal year, two estimates have also moved higher, with no downward revisions during the same period [9] Conclusion - Given the strong performance metrics and positive earnings outlook, EFSC is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment option [11]