Expansion and Growth - The company expanded its presence in Arizona and Kansas City through the acquisition of 12 former First Interstate Bank branches, adding $292.0 million in loans and $609.5 million in deposits as of December 31, 2025[30]. - The company has a disciplined approach to growth through acquisitions, which has significantly contributed to its expansion[30]. - The company aims to generate attractive stockholder returns by providing comprehensive financial services primarily to privately-held businesses and their owner families[21]. - The company maintains a focus on client relationship-driven growth, seeking to add clients that fit its target market[23]. Financial Performance and Metrics - The efficiency ratio, which measures noninterest expense divided by total revenue, is a key metric for the company's expense management strategy[29]. - The company emphasizes maintaining asset quality through ongoing reviews of loans in each market and specialized lending niche[28]. - The company focuses on specialized lending niches, including SBA 7(a) loans, life insurance premium finance, and sponsor finance, to differentiate itself in the market[24]. - The company offers a broad range of treasury management products and services, generating fee income from various business clients[26]. Regulatory Compliance and Oversight - The Company has over $10 billion in assets and is subject to examination by the CFPB[34]. - The Company must maintain a minimum Common Equity Tier 1 (CET1) capital ratio of 7.0% under Basel III Capital Rules[58]. - The prompt corrective action categories require a total risk-based capital ratio of at least 10.0% to be considered well-capitalized[57]. - The Company is required to file periodic reports of its operations to remain a financial holding company[40]. - The Federal Reserve mandates that financial holding companies may only pay cash dividends from income available over the past year[48]. - The Company may engage in stock repurchases but must consult with the Federal Reserve under certain conditions[47]. - The Dodd-Frank Act has made extensive changes in the regulation of financial institutions, impacting the Company's operations[39]. - The Company is subject to extensive federal and state regulatory oversight, including capital adequacy and loss reserves[53]. - The Company must submit a capital restoration plan if it becomes undercapitalized, with specific guarantees required from the holding company[59]. - The regulatory framework is designed primarily for the protection of depositors and the banking system, rather than stockholders[37]. - As of December 31, 2025, all of the Bank's capital ratios qualified it to be "well-capitalized" for regulatory purposes[61]. - The FDIC finalized a rule in November 2023 imposing special assessments at an annual rate of approximately 13.4 basis points to recover losses to the Deposit Insurance Fund, starting January 1, 2024[63]. - The Bank is subject to various consumer protection laws, including the Dodd-Frank Act, which mandates compliance with federal consumer financial laws[64]. - The Bank's payment of dividends is restricted under Missouri law and federal regulations, particularly if it is deemed "undercapitalized"[70]. - The CFPB has broad rule-making authority that may significantly impact consumer mortgage lending and servicing, particularly with new regulations on mortgage origination standards[65]. - The Bank's compliance with the Community Reinvestment Act (CRA) is crucial, as a "satisfactory" rating is required to avoid restrictions on new activities and acquisitions[72]. - The USA PATRIOT Act requires the establishment of an anti-money laundering program and imposes due diligence requirements for certain banking accounts[76]. - The Bank's consumer-oriented activities are subject to state and local consumer protection laws, which impose additional obligations on marketing and servicing[67]. - The Bank's lending operations may face enhanced scrutiny due to its concentration of commercial real estate (CRE) loans, particularly if total CRE loans exceed 300% of the institution's total capital[77]. Employee and Workplace Culture - As of December 31, 2025, the company employed 1,370 regular full-time and 48 part-time associates, with additional seasonal and temporary associates as needed[82]. - Approximately 68% of associates are eligible for the Short Term Incentive Plan (STIP), which aligns compensation with performance[85]. - The minimum wage for associates is set at $17 per hour, with 99% of associates earning above this minimum[86]. - The company has been recognized as one of the "Best Banks to Work for" by American Banker magazine for eight consecutive years, ranking sixth among similar financial institutions in 2025[88]. - The company is committed to providing a competitive total compensation package, regularly comparing it with peer companies and market data[84]. - The company emphasizes a culture of accountability and collaboration, which is essential for meeting stockholder commitments and achieving performance standards[81]. - The company has established succession plans to ensure the continuation of essential roles and operations[83]. - The company conducts associate surveys to understand their needs and has made changes based on feedback, such as adopting a volunteer time-off policy[88]. - The company offers a wide array of benefits, including 401(k), paid time off, and wellness programs that provide financial rewards for healthy habits[87]. - The company focuses on creating an inclusive environment through various development programs and a Belonging & Inclusion Council[90]. - The Company is committed to providing a safe and healthy workplace, adhering to local, state, and federal safety regulations[91]. - The Business Continuity Plan is a key component in maintaining the health and safety of associates and clients[92].
ENTERPRISE FINL(EFSCP) - 2025 Q4 - Annual Report