Enterprise Financial Services Corp outlined a net interest margin in the mid- to upper 4.20s while targeting mid-single-digit loan growth for the year. President and CEO James Lally reported second-quarter earnings of $41 million, or $1.09 per diluted share, down from $1.30 in the linked quarter, as a larger-than-expected provision expense and approximately $14 million in charge-offs from two commercial accounts weighed on results. CFO Keene Turner said the margin expanded to 4.30% in the quarter and, absent rate changes, should remain stable, with a go-forward proxy around 4.27% to 4.28%. The company also repositioned its securities portfolio, selling low-3% tax-equivalent yield securities and reinvesting into low-5% tax-equivalent yield securities, which is expected to add $3.5 million in annual net interest income. Management noted $200 million in organic loan growth during the quarter and announced a $175 million subordinated debt issuance, 382,000 shares repurchased for approximately $23 million, and a dividend increase to $0.35 per share for the third quarter of 2026.
Enterprise Financial ServicesCompany outlined stable net interest margin, mid-single-digit loan growth, securities portfolio repositioning adding $3.5M annual income, share buybacks, and dividend increase.