Enterprise Financial (EFSC) Earnings Transcript

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Mon, January 26, 2026 astatine 10:14 AM CST 37 min read

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Tuesday, October 28, 2025 astatine 11 a.m. ET

• Chief Executive Officer — James Lally

• Chief Financial Officer and Chief Operating Officer — Keene Turner

• Chief Banking Officer — Douglas Bauche

James Lally: Good morning, and convey you each precise overmuch for joining america for our 2025 3rd 4th net call. Joining maine this greeting is Keene Turner, our company's Chief Financial Officer and Chief Operating Officer; and Doug Bauche, our company's Chief Banking Officer. Before we begin, I would similar to punctual everybody connected the telephone that a transcript of the merchandise and accompanying presumption tin beryllium recovered connected our website. The presumption and net merchandise were furnished connected SEC Form 8-K yesterday. Please notation to Slide 2 of the presumption titled Forward-Looking Statements and our astir caller 10-K and 10-Q for reasons wherefore existent results whitethorn alteration from immoderate forward-looking statements that we marque today.

The 3rd 4th was different precise coagulated 4th for our company. As we expected, we saw indebtedness maturation instrumentality to an annualized level of 6% portion deposit maturation continued good supra this level. This was a continuation of our intentional strategy to thin into our diversified geography and nationalist businesses that allows for our squad to absorption connected the concern that fits america the champion versus settling for transactional concern that achieves definite maturation targets. In summation to this, we spent sizeable clip connected the caller closing and systems conversion for the acquisition of 10 branches successful Arizona and 2 successful the Kansas City area.

As a reminder, this acquisition garnered america astir $650 cardinal of well-priced deposits and $300 cardinal successful loans but much importantly, enhances an already beardown beingness successful 2 beardown markets for us. We did acquisition an summation successful proviso for indebtedness losses successful the 4th chiefly owed to a $22 cardinal summation successful nonperforming assets and nett charge-offs. Doug volition supply overmuch much item successful his comments but I consciousness bully astir our quality to enactment done these issues and expect our NPAs to instrumentality to humanities levels implicit the adjacent fewer quarters. The recapture of transferable star taxation credits successful the 4th caused immoderate sound successful our income statement.

This concern was a constituent of our income taxation mitigation strategy and is not related to our taxation recognition indebtedness and interest businesses. Keene volition supply details connected this and locomotion you done the accounting attraction successful his comments. But I privation to reiterate that this task is covered by insurance. With that said, we earned $1.19 per diluted stock successful the 4th compared to $1.36 successful the linked 4th and $1.32 successful the 3rd 4th of 2024. This level of show produced a instrumentality connected mean assets of 1.11% successful the existent 4th and a pre-provision ROAA of 1.61%. Net involvement income and nett involvement borderline some saw enlargement successful the quarter.