Enterprise Financial Services earnings date
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Enterprise Financial Services (EFSC) Q3 2026 Earnings Report
EFSC Q3 2026 EPS Results
- Actual EPS
- $1.14
- Consensus EPS
- $1.38
- Beat/Miss
- Missed by -$0.24
- One Year Ago EPS
- $1.19
EFSC Q3 2026 Revenue Results
- Actual Revenue
- $255.82M
- Expected Revenue
- $193.09M
- Beat/Miss
- Beat by +$62.73M
- YoY Revenue Growth
- -6.64%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- After Close
- Conference Call
- Wednesday, October 21, 2026
Enterprise Financial Services's next earnings date is estimated for January 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was positive overall, with strong and diversified loan and deposit growth, improving net interest income, stable-to-improving margins, disciplined expenses, capital returns, and confidence in 2027 profitability. These strengths were tempered by elevated credit costs, higher non-performing and criticized assets, delayed California OREO resolution, volatile tax credit income, and competitive spread pressure. Management expressed confidence that credit metrics and earnings will improve over the next few quarters.
Management expects mid to high single-digit loan growth for the remainder of 2026, normalizing back to the mid-single-digit growth for the first part of 2027; it also expects quarterly loan growth of $200 million-$250 million, with 5%-6% growth requiring approximately $900 million-$1 billion net. Credit normalization is expected over the next few quarters, with criticized classified levels moving from about 6.3% toward 4.5%-5% and non-performing assets returning to closer to 45-50 basis points; certain credits may exit in the fourth quarter, while Laguna portfolio monetization is realistically expected in Q1 of next year. Net charge-offs around 25 basis points would feel like a victory in the short-term, and provision on new growth is expected at 100 basis points-115 basis points. Margin is expected to move a couple basis points higher in the fourth quarter, with a mid-4.30s margin entering 4Q and upward buoyancy over the next several quarters; each quarter point change in rates affects net interest income $1 million-$2 million per quarter, and deposit betas are modeled at 55%. Fourth-quarter expenses excluding deposit costs are expected to be relatively level to 3Q, while the deposit ECR line item is expected to move up $1.5 million to $2 million sequentially; the state tax credit business may be changed over the next quarter or two, the tax rate is expected to remain roughly 22%, and the efficiency ratio is expected to remain below 60%.
- Quarterly Earnings and Pre-Provision ProfitabilityThird-quarter net income was $42 million, or $1.14 per diluted share, compared with $1.09 in the second quarter and $1.19 in the third quarter of 2025. Adjusted earnings per share was $1.17, up from $1.13 in the linked quarter. Pre-provision earnings increased $6 million to $75 million, primarily due to higher net interest income.
- Net Interest Income Growth and Stable MarginNet interest income increased $5.9 million to $175 million, or 14% annualized from the linked quarter, while net interest margin remained stable at 4.30%. Higher average loan balances, improved investment returns from the prior-quarter portfolio restructuring, a steeper yield curve, and relatively stable deposit costs contributed to the result.
- Expected Margin ExpansionManagement said September margin was already in the mid-4.30% range and expects margin to increase by a couple of basis points in the fourth quarter. Management also expressed confidence in net interest income and margin growth over the next several quarters, supported by positive asset mix changes, loan growth, and deposit-cost management.
- Robust Loan GrowthTotal loans reached $12.3 billion after increasing $453 million, or nearly 4% sequentially, in the third quarter. Gross loan originations and advances were $1.3 billion versus $800 million of repayments. Over the last 12 months, total loan outstandings increased $762 million, or 6.6%.
- Broad-Based Commercial Lending ExpansionCore C&I loans increased $79 million quarter-over-quarter to $2.7 billion and grew $386 million, or 17%, over the trailing 12 months. CRE investor-owned loans increased $138 million to just over $3 billion, with new fundings concentrated among well-capitalized, experienced developers and sponsor groups.
- Life Insurance Premium Finance GrowthThe life insurance premium finance portfolio increased $100 million, or 8%, sequentially, reaching $1.4 billion. Management described the business as low risk and highly collateralized and said it had increased $150 million year to date.
- Diversified Specialty Lending PortfolioSBA 7(a) owner-occupied real estate financing remained stable at $1.25 billion, maintaining the company's position as a leading national SBA originator. Sponsor finance balances were steady at $714 million, while tax credit lending increased slightly to $750 million. Overall line utilization remained controlled at 46.6% versus 46.7% in the linked quarter.
- Strong Deposit Growth and Relationship FundingTotal deposits increased $624 million, or 4.3%, sequentially, and $1.5 billion, or 11.5%, over the last 12 months, reaching $15.1 billion. Core community banking markets generated 80%, or $500 million, of quarterly growth, while specialty verticals contributed 20%, or $123 million.
- High-Quality Deposit Mix and Funding CostsNon-interest-bearing demand deposits totaled $5 billion, or 33% of total deposits. Property management, community association, and legal and escrow deposits totaled $4.2 billion, or 28% of deposits. The average cost of funds across those three verticals improved 17 basis points to 2.52% from 2.69%, while total deposit cost remained controlled at 1.54%.
- Commercial Relationship DepthCore commercial deposits totaled $5.4 billion, with approximately 80% of those clients using treasury management and 60% maintaining an active lending relationship. Business banking and consumer deposits totaled $4.6 billion, with weighted average funding costs of 1.17% and 1.46%, respectively.
- Improved Expense and Efficiency PerformanceThird-quarter non-interest expense declined approximately $1 million to $115 million, including a $2.5 million reduction in employee compensation and benefits. The core efficiency ratio improved to 58.9% from 61.1%, largely due to net interest income growth. Management also said it is streamlining operations and expects incremental improvement in the prospective expense run rate and efficiency ratio.
- Capital Returns to ShareholdersThe company repurchased approximately 526,000 shares for $34 million and increased its quarterly dividend by $0.01 to $0.36 per common share. Year to date, approximately $122 million had been returned to shareholders through common stock repurchases and dividends.
- Capital Position and Ongoing Buyback PlansThe tangible common equity-to-tangible assets ratio was 8.13%, moving into the company's target range. Management said it still expects to be active in share repurchases in the fourth quarter, although buybacks may be less assertive than when the ratio was 9.13%.
- Interest Rate Risk ManagementNet interest income remains modestly asset sensitive, with each 25-basis-point rate change expected to affect quarterly net interest income by $1 million to $2 million, or a couple of basis points of net interest margin. The company added $150 million of loan hedges during the quarter to further stabilize its interest rate risk profile.
- Positive Loan and Deposit Growth OutlookManagement expects mid- to high-single-digit loan growth for the remainder of 2026, normalizing to mid-single-digit growth in the first part of 2027. Management also said deposit growth should be sufficient to fund continued loan growth and expects strong momentum into the next quarter.
- Growth Across Multiple Markets and IndustriesManagement cited continued demand in data center ecosystem companies, power generation, defense, aerospace, and selected industrial and retail markets. Growth was described as diversified across geographic markets, including North Texas, Southern Nevada, and Arizona, as well as national lending businesses.
- Automation and Technology InitiativesThe company is continuing its automation journey by integrating manual procedures into automated workflow processes. Management reported strong adoption of automation tools and said the recently announced property-management technology partnership and investment will improve system integration, efficiency, and client experience.
- Business Optimization and Strategic ExitsManagement has exited subscale business-banking activities in certain western markets and announced that it is exiting the mortgage business as an originator. The company is also changing how it participates in the state tax credit business while continuing to lend in that area.
- Underlying Profitability OpportunityManagement said normalized quarterly PPNR was approximately 180 basis points after adjusting for non-interest income items and certain OREO carrying costs. It also stated that returning net charge-offs to approximately 25 basis points would reduce the current 130-basis-point impact from credit losses, while moving OREO assets back into earning assets would remove related operating and legal expenses.
- Client and Business SentimentManagement reported continued client optimism despite higher interest rates, increased energy costs, and other inflationary factors. It said companies across several key sectors continue to have a clear and robust growth outlook and expressed confidence in improved results in 2027 and beyond.
EFSC Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 25, 2027 | 2026 (Q4) | 1.50- | 1.45 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 1.381.14 | 1.19 | -4.20% (-0.05) | |
| Jul 22, 2026 | 2026 (Q2) | 1.331.09 | 1.36 | -19.85% (-0.27) | |
| Apr 22, 2026 | 2026 (Q1) | 1.291.30 | 1.31 | -0.76% (-0.01) | |
| Jan 26, 2026 | 2025 (Q4) | 1.331.45 | 1.28 | 13.28% (+0.17) | |
| Sep 30, 2025 | 2025 (Q3) | 1.291.19 | 1.32 | -9.85% (-0.13) | |
| Jul 28, 2025 | 2025 (Q2) | 1.211.36 | 1.19 | 14.29% (+0.17) | |
| Apr 28, 2025 | 2025 (Q1) | 1.171.31 | 1.05 | 24.76% (+0.26) | |
| Jan 27, 2025 | 2024 (Q4) | 1.181.28 | 1.16 | 10.34% (+0.12) | |
| Oct 21, 2024 | 2024 (Q3) | 1.141.32 | 1.17 | 12.82% (+0.15) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
