Enterprise Financial(US:EFSC)2025-10-31 19:44Financial Performance - Net income for the nine months ended September 30, 2025, was $146.58 million, compared to $136.43 million for the same period in 2024, marking an increase of 7.4%[15] - Net income for the three months ended September 30, 2025, was $45,235 thousand, down from $50,585 thousand in the same period of 2024, a decrease of 6.7%[13] - Earnings per common share for the nine months ended September 30, 2025, was $3.89, compared to $3.57 for the same period in 2024, an increase of 9.0%[13] - Basic earnings per common share for the three months ended September 30, 2025, was $1.20, down from $1.33 in the same period of 2024, reflecting a decline of 9.8%[32] - Total comprehensive income for the nine months ended September 30, 2025, was $195.28 million, compared to $158.61 million for the same period in 2024, representing a growth of 23.1%[15] Asset and Deposit Growth - Total assets increased to $16.40 billion as of September 30, 2025, compared to $15.60 billion at the end of 2024, representing a growth of 5.1%[11] - Total deposits rose to $13.57 billion as of September 30, 2025, from $13.15 billion at the end of 2024, an increase of 3.2%[11] - The balance of cash and cash equivalents at the end of the period on September 30, 2025, was $471,955,000, compared to $426,380,000 at the end of September 2024, indicating an increase of approximately 10.7%[21] Income and Expenses - Net interest income for the three months ended September 30, 2025, was $158.29 million, up from $143.47 million in the same period of 2024, reflecting an increase of 10.3%[13] - Noninterest income for the three months ended September 30, 2025, was $48.62 million, significantly higher than $21.42 million in the same period of 2024, showing a growth of 127.5%[13] - Total other noninterest income for the three months ended September 30, 2025, was $38,883 thousand, compared to $8,347 thousand in 2024[91] - Total other noninterest expenses for the three months ended September 30, 2025, were $20,441 thousand, an increase from $17,352 thousand in 2024[91] Credit Losses and Provisions - Provision for credit losses increased to $8.45 million for the three months ended September 30, 2025, compared to $4.10 million in the prior year, indicating a rise of 106.5%[13] - The allowance for credit losses on loans was $148.85 million as of September 30, 2025, up from $137.95 million at the end of 2024, reflecting an increase of 7.0%[11] - The provision for credit losses for the nine months ended September 30, 2025, was $17,101,000, compared to $14,674,000 in 2024, indicating an increase of approximately 16.5%[20] - Nonperforming loans increased to $127.9 million as of September 30, 2025, from $42.7 million at December 31, 2024, reflecting a significant rise due to two borrowing relationships filing for bankruptcy[50] Loan and Investment Activity - The company reported a net increase in loans of $456,978,000 for the nine months ended September 30, 2025, compared to $238,646,000 in 2024, representing an increase of approximately 91.7%[20] - As of September 30, 2025, total loans amounted to $11.58 billion, an increase from $11.22 billion at December 31, 2024, representing a growth of approximately 3.2%[42] - The company sold $22.2 million of the guaranteed portion of SBA 7(a) loans during the three months ended September 30, 2025, with a gain on sale of $1.1 million[44] - The total recorded investment in past due loans totaled $159.5 million as of September 30, 2025, with current loans amounting to $11.6 billion[53] Securities and Derivatives - Total securities available-for-sale amounted to $2.35 billion as of September 30, 2025, with gross unrealized losses of $116.8 million[35] - The amortized cost of held-to-maturity securities was $1.08 billion, with a fair value of $1.03 billion as of September 30, 2025[35] - The Company has executed cash flow hedges involving interest rate swaps with notional amounts of $50 million at a fixed rate of 6.56% maturing on February 1, 2027, and $100 million at 6.63% maturing on January 1, 2028[78] - The fair value of the Company's derivative financial instruments as of September 30, 2025, included derivative assets of $2.7 million and derivative liabilities of $649,000[82] Equity and Stockholder Information - The total stockholders' equity as of September 30, 2025, was $1,982,332,000, a decrease from $1,824,002,000 at the end of 2024, reflecting a decline of about 8.7%[20] - Common stock dividends paid for the nine months ended September 30, 2025, totaled $33,271,000, compared to $29,171,000 in 2024, reflecting an increase of about 14.5%[21] Risk Management and Economic Outlook - The Company expects the federal funds rate to continue to fall in 2025 and 2026, which is factored into the baseline forecast[46] - Key risks to the forecasts include potential market reactions to Federal Reserve policy actions, persistently higher inflation, and tightening credit markets[46] - The Company has recognized various risks in certain loan segments, particularly in the commercial office sector, by allocating additional reserves[46]