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1. Company Snapshot

1.a. Company Description

Enterprise Financial Services Corp operates as the financial holding company for Enterprise Bank & Trust that offers banking and wealth management services to individuals and corporate customers.The company offers checking, savings, and money market accounts, and certificates of deposit.It also provides commercial and industrial, commercial real estate, construction and land development, residential real estate, agricultural, and consumer loans.


In addition, the company offers treasury management and international trade services; tax credit brokerage services consisting of the acquisition of tax credits and sale of these tax credits to clients; and financial and estate planning, investment management, and trust services to businesses, individuals, institutions, retirement plans, and non-profit organizations.Further, it offers fiduciary, financial advisory, and merchant processing services; and debit and credit cards.Additionally, the company provides international banking, insurance, internet and mobile banking, remote deposit capture, positive pay, fraud detection and prevention, automated payable, check imaging, and statement and document imaging services; and cash management products, controlled disbursements, repurchase agreements, and sweep investment accounts.


It operates banking locations and administrative offices in Arizona, California, Kansas, Missouri, Nevada, and New Mexico market areas, as well as a network of SBA loan production offices and deposit production offices in various states.Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri.

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1.b. Last Insights on EFSC

Enterprise Financial Services Corp's recent performance was driven by solid loan and deposit growth, expanding net interest income and margin. The company reported increased net interest income for the sixth consecutive quarter. Institutional investors, such as AlphaQuest LLC and Elizabeth Park Capital Advisors Ltd., have been buying shares, with AlphaQuest LLC boosting its stake by 4,855.5%. The company is set to release its Q4 2025 financial results on January 26, 2026, and will host a conference call on January 27, 2026.

1.c. Company Highlights

2. Enterprise Financial Services Corporation's Q4 2025 Earnings: A Strong Performance

Enterprise Financial Services Corporation reported a net income of $55 million for the fourth quarter of 2025, with earnings per share (EPS) of $1.45, slightly above the actual EPS of $1.36. The return on average assets was 1.27%, and the pre-provision return on average assets was 1.74%. Net interest income grew by $10 million to $168 million, driven by strong deposit growth, higher investment balances, and a favorable spread on acquired loans and deposits. The net interest margin for the fourth quarter was 4.26% on a tax-equivalent basis, an increase of 3 basis points over the linked period.

Publication Date: Mar -08

📋 Highlights
  • Strong Q4 Earnings: Net income reached $55 million with EPS of $1.45, reflecting a 1.27% ROAA and 1.74% pre-provision ROAA.
  • Deposit Growth Surge: Total deposits grew $1 billion, including $609 million from branch acquisitions, with 39% core commercial and 33% business/consumer deposits.
  • Asset Quality Improvement: NPAs at 95 bps, but plans to reduce to 35-40 bps by Q3 2026 through sales of 6 OREO properties in Southern California.
  • Capital Strength: Tangible book value per share rose 11% to $41.37, with $3.5 million share repurchases and a $0.32 dividend increase (up 3.3%).

Deposit Growth and Asset Quality

The company's deposit base is well-balanced, with 39% in core commercial, 33% in business and consumer banking, and 28% in specialty deposits. Deposit growth was $1 billion in the fourth quarter, with organic growth of $432 million, primarily driven by noninterest-bearing deposits. The acquisition of a branch in Arizona and Kansas contributed to the growth, with $609 million in deposits added to the company's balance sheet. Asset quality is a key focus area, with a clear path to reduce nonperforming assets (NPAs) from 95 basis points to a more historical level of 35-40 basis points over the next two quarters.

Outlook and Guidance

For 2026, the company expects a net interest margin run rate of around 4.2% and anticipates additional loan repricing and some attrition of deposit balances in the first quarter. The balance sheet composition and funding mix are well-positioned to limit the impact of interest rates on net interest margin. The company expects mid-single-digit loan growth and a 6% to 8% overall balance sheet growth, with deposit gathering exceeding loan growth pace. Analysts estimate next year's revenue growth at 3.3%.

Valuation and Dividend Yield

Considering the current valuation metrics, the Price-to-Tangible Book Value (P/TBV) is around 0.99, which is slightly below 1, indicating that the stock might be undervalued. The Dividend Yield is 2.24%, providing a relatively stable income stream. The company's return on tangible common equity was 14.02% for the fourth quarter, and tangible book value per share was $41.37, representing an 11% increase in tangible book value per share growth for the year.

Capital Management

The company increased its dividend by $0.01 per share to $0.32 for the fourth quarter and repurchased 67,000 shares at an average price of $52.64. James Lally mentioned that they have 150,000 shares authorized for buyback and 1.1 million remaining, with 100,000 covered by a plan, indicating a commitment to returning capital to shareholders.

3. NewsRoom

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Enterprise Financial Services Corp Announces First Quarter 2026 Earnings Release and Conference Call

Apr -08

Source: businesswire.com

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Comparing Enterprise Financial Services (NASDAQ:EFSC) & Old Second Bancorp (NASDAQ:OSBC)

Feb -27

Source: defenseworld.net

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Enterprise Financial Services (NASDAQ:EFSC) Stock Price Passes Above 200-Day Moving Average – Here’s What Happened

Feb -19

Source: defenseworld.net

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After Golden Cross, Enterprise Financial Services (EFSC)'s Technical Outlook is Bright

Feb -05

Source: zacks.com

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Enterprise Financial Services Q4 Earnings Call Highlights

Jan -28

Source: defenseworld.net

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Enterprise Financial Services Corp (EFSC) Q4 2025 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

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Compared to Estimates, Enterprise Financial Services (EFSC) Q4 Earnings: A Look at Key Metrics

Jan -27

Source: zacks.com

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Enterprise Financial Services (EFSC) Q4 Earnings Miss Estimates

Jan -27

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Banking and Related Activities

Expected Growth: 4.0%

Strong loan growth driven by increased commercial lending and mortgage demand, coupled with expansion into new markets and strategic partnerships. Additionally, investments in digital transformation and cost savings initiatives have improved operational efficiency, contributing to the 4.0% growth in Banking and Related Activities at Enterprise Financial Services Corp.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, lending, and trade finance.

Treasury Management

Offers cash management, foreign exchange, and risk management solutions to help businesses optimize their treasury operations.

Investment Banking

Provides advisory services for mergers and acquisitions, equity and debt capital markets, and restructuring.

Markets and Securities

Offers sales, trading, and research services for fixed income, currencies, commodities, and equities.

Wealth Management

Provides investment management, brokerage, and wealth planning services to individuals and families.

Card Services

Offers credit card and payment solutions to consumers and businesses.

Merchant Services

Provides payment processing and merchant services to businesses.

8. Enterprise Financial Services Corp's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Enterprise Financial Services Corp is medium due to the presence of alternative financial services providers.

Bargaining Power Of Customers

The bargaining power of customers for Enterprise Financial Services Corp is high due to the availability of alternative financial services providers and the ease of switching.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Enterprise Financial Services Corp is low due to the company's large scale of operations and its ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants for Enterprise Financial Services Corp is medium due to the presence of regulatory barriers and the need for significant capital investment to enter the market.

Intensity Of Rivalry

The intensity of rivalry for Enterprise Financial Services Corp is high due to the presence of several established competitors and the need to differentiate itself through innovative products and services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 8.59%
Debt Cost 8.94%
Equity Weight 91.41%
Equity Cost 8.94%
WACC 8.94%
Leverage 9.40%

11. Quality Control: Enterprise Financial Services Corp passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

57.83$

Current Price

57.83$

Potential

-0.00%

Expected Cash-Flows