Enterprise Financial Services Corp Reports 23.5% Increase in Net Income for Q1 2025

Enterprise Financial Services Corp reported its financial results for the first quarter of 2025, revealing a net income of $49.96 million, a 23.5% increase from $40.40 million in the same period last year. The company's earnings per share rose to $1.33, compared to $1.05 in the prior year. Total interest income for the quarter was $211.78 million, up from $207.72 million year-over-year, while interest expense decreased to $64.26 million from $69.99 million, contributing to a net interest income of $147.52 million, an increase from $137.73 million in the previous year.

The company experienced a slight increase in total loans, which rose to $11.30 billion from $11.22 billion at the end of 2024. This growth was primarily driven by increases in commercial and industrial loans, as well as commercial real estate loans. However, total deposits decreased by $112.26 million to $13.03 billion, with a notable decline in noninterest-bearing demand accounts. The loan-to-deposit ratio stood at 87% as of March 31, 2025, compared to 85% at the end of the previous year.

In terms of asset quality, the allowance for credit losses on loans increased to $142.94 million, representing 1.27% of total loans, up from 1.23% at the end of 2024. Nonperforming loans surged to $109.88 million, a significant rise from $42.69 million at the end of the previous quarter, largely due to two commercial real estate loans linked to a bankruptcy filing. The company maintains a strong capital position, with total stockholders' equity increasing to $1.87 billion, reflecting a solid capital ratio that exceeds regulatory requirements.

Strategically, Enterprise Financial Services Corp announced a purchase agreement with First Interstate Bank to acquire twelve branches, including approximately $740 million in deposits and $200 million in loans. This acquisition, expected to close in the fourth quarter of 2025, is part of the company's growth strategy to expand its footprint in Arizona and Kansas. The company remains optimistic about its future performance, citing ongoing investments in its loan portfolio and a focus on maintaining asset quality amid changing economic conditions.