Enterprise Financial Services Corp (EFSC) reported a net income of $185.3 million for the fiscal year ending December 31, 2024, translating to $4.83 per diluted share. This represents a decrease from the previous year's net income of $194.1 million, or $5.07 per diluted share. The company's total interest income increased to $851.1 million, up from $764.9 million in 2023, while total interest expense also rose significantly to $282.9 million, compared to $202.3 million the prior year. The net interest income after provisions for credit losses was $546.6 million, reflecting a provision for credit losses of $21.5 million, down from $36.6 million in 2023, indicating an improvement in asset quality.
In terms of operational developments, EFSC completed the conversion of its legacy core banking system to a new platform in October 2024, which is expected to enhance operational efficiency. The company also repurchased 626,778 shares of its common stock at an average price of $46.95 during the year. Total deposits increased by 8% to $13.1 billion, driven by growth in both noninterest-bearing and interest-bearing accounts. The company’s loan portfolio also grew, reaching $11.2 billion, with notable increases in commercial and industrial loans, as well as commercial real estate loans.
The company reported a decrease in its net interest margin to 4.16% from 4.43% in 2023, primarily due to rising deposit costs. The efficiency ratio increased to 60.37%, up from 55.15% the previous year, reflecting higher noninterest expenses, which rose by 11% to $385.0 million. This increase was attributed to higher customer deposit servicing costs and increased employee compensation due to recruitment and merit increases. The effective tax rate for 2024 was 19.9%, a decrease from 21.3% in 2023, influenced by tax credit opportunities.
Looking ahead, EFSC remains focused on maintaining its capital strength, with a common equity tier 1 capital ratio of 11.8% as of December 31, 2024, categorizing the bank as "well-capitalized." The company plans to continue leveraging its strategic growth through acquisitions and enhancing its product offerings, particularly in specialized lending areas such as SBA loans and tax credit-related lending. The management anticipates that ongoing economic conditions and regulatory changes will influence its operational strategies and financial performance in the coming year.
About ENTERPRISE FINANCIAL SERVICES CORP
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