Enterprise Financial Services Corp Reports First Quarter 2026 Results

ST. LOUIS--( BUSINESS WIRE)--Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”) today announced financial results for the first quarter of 2026. “Our first quarter results demonstrated a stable net interest margin, improved credit quality, along with a strong balance sheet,” said Jim Lally, President and Chief Executive Officer. “With a 1.16% return on average assets, we continued to return capital to stockholders through an increased dividend and share repurchases. These fundamentally sound results represent a solid start to 2026, even accounting for seasonal loan and deposit trends. Given our capital strength and diversified model, we remain optimistic about the opportunities ahead in our markets.”

Comparisons to the prior year quarter are impacted by the acquisition of 12 branches in Arizona and Kansas in the fourth quarter 2025 (the “Branch Acquisition”).

Highlights

The Company’s Board of Directors (the “Board”) approved a quarterly dividend of $0.34 per common share, payable on June 30, 2026 to stockholders of record as of June 15, 2026. The Board also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) March 15, 2026 to (but excluding) June 15, 2026. The dividend will be payable on June 15, 2026 to stockholders of record of Series A Preferred Stock as of May 29, 2026.

1 ROATCE, tangible common equity to tangible assets, tangible book value per common share, and adjusted diluted earnings per share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

2 PPNR is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

3 Tangible common equity to tangible assets ratio is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

Net Interest Income and NIM

Average Balance Sheets

The following table presents, for the periods indicated, certain information related to the average interest-earning assets and interest-bearing liabilities, as well as the corresponding average interest rates earned and paid, all on a tax-equivalent basis.

Quarter ended

March 31, 2026

December 31, 2025

March 31, 2025

($ in thousands)

Average

Balance

Interest

Income/

Expense

Average Yield/ Rate

Average

Balance

Interest

Income/

Expense

Average Yield/ Rate

Average

Balance

Interest

Income/

Expense

Average Yield/ Rate

Assets

Interest-earning assets:

Loans 1, 2

11,777,727

185,380

6.38

11,794,459

193,587

6.51

11,240,806

182,039

6.57

Taxable securities

2,481,169

26,108

4.27

2,331,562

24,464

4.16

1,818,615

17,625

3.93

Non-taxable securities 2

1,301,675

12,390

3.86

1,292,403

12,263

3.76

1,112,297

9,467

3.45

Total securities

3,782,844

38,498

4.13

3,623,965

36,727

4.02

2,930,912

27,092

3.75

Interest-earning deposits

504,541

4,533

3.64

552,843

5,436

3.90

479,136

5,124

4.34

Total interest-earning assets

16,065,112

228,411

5.77

15,971,267

235,750

5.86

14,650,854

214,255

5.93

Noninterest-earning assets

1,245,991

1,128,162

992,145

Total assets

17,311,103

17,099,429

15,642,999

Liabilities and Stockholders’ Equity

Interest-bearing liabilities:

Interest-bearing demand accounts

3,453,650

14,940

1.75

3,550,349

17,236

1.93

3,167,428

17,056

2.18

Money market accounts

3,952,475

25,198

2.59

3,948,405

27,611

2.77

3,601,535

28,505

3.21

Savings accounts

538,597

152

0.11

540,764

168

0.12

534,512

189

0.14

Certificates of deposit

1,665,977

14,459

3.52

1,659,905

15,223

3.64

1,374,693

13,516

3.99

Total interest-bearing deposits

9,610,699

54,749

2.31

9,699,423

60,238

2.46

8,678,168

59,266

2.77

Subordinated debentures and notes

93,725

1,522

6.59

93,654

1,561

6.61

156,615

2,562

6.63

FHLB advances

5,756

3.95

11,620

127

4.34

25,300

287

4.60

Securities sold under agreements to repurchase

270,057

1,614

2.42

170,058

1,065

2.48

263,608

2,017

3.10

Other borrowings

94,910

1,003

4.29

97,196

1,108

4.52

39,535

132

1.35

Total interest-bearing liabilities

10,075,147

58,944

2.37

10,071,951

64,099

2.52

9,163,226

64,264

2.84

Noninterest-bearing liabilities:

Demand deposits

4,998,734

4,837,958

4,463,388

Other liabilities

160,718

167,048

153,113

Total liabilities

15,234,599

15,076,957

13,779,727

Stockholders' equity

2,076,504

2,022,472

1,863,272

Total liabilities and stockholders' equity

17,311,103

17,099,429

15,642,999

Total net interest income

169,467

171,651

149,991

Net interest margin

4.28

4.26

4.15

1 Average balances include nonaccrual loans. Interest income includes net loan fees of $1.4 million, $1.7 million, and $1.6 million for each of the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

2 Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $3.3 million, $3.5 million, and $2.5 million for each of the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

Net interest income of $166.1 million for the first quarter 2026 decreased $2.0 million and increased $18.6 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $169.5 million, $171.7 million and $150.0 million for the current, linked and prior year quarters, respectively. The change from the linked and prior year quarters was related to the impact of lower short-term interest rates on loan yields and the cost of interest-bearing liabilities, in addition to growth in both interest-earning assets and interest-bearing liabilities. Net interest income also declined from the linked quarter due to two fewer days in the current quarter.

Since September 2024, the Federal Reserve has reduced the federal funds target rate 175 basis points. In response, the Company has proactively adjusted deposit pricing to partially mitigate the impact on income from the repricing of variable rate loans.

Interest income for the first quarter 2026 decreased $7.2 million and increased $13.3 million from the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily due to a 13 basis point decrease in loan yields and two fewer days in the period, partially offset by a $158.9 million increase in average investment securities balances and an 11 basis point increase in yield on securities. The average interest rate of new loan originations in the first quarter 2026 was 6.58%, a decrease of 17 basis points from the linked quarter. Investment purchases in the first quarter 2026 had a weighted average, tax equivalent yield of 4.51%. Compared to the prior year quarter, interest-earning assets increased $1.4 billion.

Interest expense in the first quarter 2026 decreased $5.2 million and $5.3 million from the linked and prior year quarters, respectively, primarily due to a reduction in the cost of interest-bearing deposits due to decreased interest paid on interest-bearing deposits. The total cost of deposits, including noninterest-bearing demand accounts, was 1.52% during the first quarter 2026, compared to 1.64% and 1.83% in the linked and prior year quarters, respectively.

NIM, on a tax equivalent basis, was 4.28% in the first quarter 2026, an increase of two basis points and 13 basis points from the linked and prior year quarters, respectively. For the month of March 2026, the loan portfolio yield was 6.31% and the cost of total deposits was 1.50%.

Investments

March 31, 2026

December 31, 2025

March 31, 2025

($ in thousands)

Carrying Value

Net Unrealized Loss

Carrying Value

Net Unrealized Loss

Carrying Value

Net Unrealized Loss

Available-for-sale (AFS)

2,773,667

(116,745

)

2,655,035

(83,258

)

1,990,068

(146,184

)

Held-to-maturity (HTM)

1,055,495

(52,176

)

1,074,957

(35,288

)

1,034,282

(74,228

)

Total

3,829,162

(168,921

)

3,729,992

(118,546

)

3,024,350

(220,412

)

Investment securities totaled $3.8 billion at March 31, 2026, an increase of $99.2 million from the linked quarter. The tangible common equity to tangible assets ratio adjusted for unrealized losses on HTM securities 4 was 8.78% at March 31, 2026, compared to 8.91% at December 31, 2025.

4 The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.

Loans

The following table presents total loans for the most recent five quarters:

($ in thousands)

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

C&I

2,655,273

2,606,472

2,320,868

2,316,609

2,198,802

CRE investor owned

2,763,227

2,786,139

2,626,657

2,547,859

2,487,375

CRE owner occupied

1,452,350

1,404,704

1,296,902

1,281,572

1,292,162

SBA loans*

1,230,455

1,262,456

1,257,817

1,249,225

1,283,067

Sponsor finance*

661,946

694,905

774,142

771,280

784,017

Life insurance premium financing*

1,208,098

1,187,128

1,151,700

1,155,623

1,149,119

Tax credits*

702,080

802,818

780,767

708,401

677,434

Residential real estate

340,966

362,278

359,315

356,722

357,615

Construction and land development

621,988

633,803

784,218

773,122

800,985

Consumer**

56,397

59,635

230,723

248,427

268,187

Total loans

11,692,780

11,800,338

11,583,109

11,408,840

11,298,763

Quarterly loan yield

6.38

6.51

6.64

6.57

Loans by rate type (to total loans):

Fixed

Variable:

SOFR

Prime

Other

Variable rate loans to total loans, adjusted for interest rate hedges

*Specialty loan category

**Certain loans were reclassified from Consumer and into other categories in the fourth quarter of 2025. Prior period amounts were not adjusted.

Loans totaled $11.7 billion at March 31, 2026, a decrease of $107.6 million compared to the linked quarter. Repayment activity outpaced loan production in the quarter with repayment activity of $921.1 million compared to loan volume of $813.5 million. Repayment activity was strongest in the tax credit and C&I portfolios in the current quarter. Loan sales of $25.4 million also mitigated growth in the SBA category during the current period. On a periodic basis, the Company will opportunistically sell SBA guaranteed loans. Average line utilization was approximately 45% for the current quarter, compared to 44% and 42% for the linked and prior year quarters, respectively.

Asset Quality

The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:

($ in thousands)

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

Nonperforming loans*

64,941

82,809

127,878

105,807

109,882

Other 1

84,482

81,544

7,821

8,221

3,271

Nonperforming assets*

149,423

164,353

135,699

114,028

113,153

Nonperforming loans to total loans

0.56

0.70

1.10

0.93

0.97

Nonperforming assets to total assets

0.87

0.95

0.83

0.71

0.72

Allowance for credit losses

142,064

140,022

148,854

145,133

142,944

Allowance for credit losses to total loans

1.21

1.19

1.29

1.27

Allowance for credit losses to nonperforming loans*

218.8

169.1

116.4

137.2

130.1

Quarterly net charge-offs (recoveries)

4,407

20,674

4,057

630

(1,059

)

*Guaranteed balances excluded

28,243

28,903

33,475

26,536

22,607

1OREO and repossessed assets

Nonperforming assets decreased $14.9 million and increased $36.3 million from the linked and prior year quarters, respectively. The decrease in nonperforming assets compared to the linked quarter is primarily due to two loans totaling $17.5 million that went on nonaccrual in the second half of 2025 and were subsequently paid off in the first quarter 2026. The increase in nonperforming assets from the prior year quarter is primarily related to one commercial real estate loan totaling $22.6 million that went on nonaccrual in the fourth quarter 2025. Four properties in OREO at March 31, 2026 with a carrying value of $46 million are currently under contract to sell.

The provision for credit losses totaled $7.2 million in the first quarter 2026, compared to $9.2 million and $5.2 million in the linked and prior year quarters, respectively. The provision for credit losses in the first quarter 2026 was primarily related to net charge-offs and qualitative adjustments to recognize the broader macroeconomic risks to the loan portfolio from the conflict in Iran. Annualized net charge-offs totaled 15 basis points of average loans in the current quarter, compared to 70 basis points in the linked quarter and annualized net recoveries totaled 4 basis points of average loans in the prior year quarter.

Deposits

The following table presents deposits broken out by type for the most recent five quarters:

($ in thousands)

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

Noninterest-bearing demand accounts

4,828,375

4,874,115

4,386,513

4,322,332

4,285,061

Interest-bearing demand accounts

3,395,680

3,537,334

3,301,621

3,184,670

3,193,903

Money market and savings accounts

4,610,662

4,528,510

4,228,605

4,209,032

4,167,375

Brokered certificates of deposit

724,788

721,977

762,499

752,422

542,172

Other certificates of deposit

964,892

947,406

888,674

848,903

845,719

Total deposit portfolio

14,524,397

14,609,342

13,567,912

13,317,359

13,034,230

Noninterest-bearing deposits to total deposits

33.2

33.4

32.3

32.5

32.9

Quarterly cost of deposits

1.52

1.64

1.80

1.82

1.83

Total deposits at March 31, 2026 were $14.5 billion, a decrease of $84.9 million and an increase of $1.5 billion from the linked and prior year quarters, respectively. Average deposits for the three months ended March 31, 2026 were $14.6 billion, compared to $14.5 billion and $13.1 billion for the three months ended December 31, 2025 and March 31, 2025, respectively. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.3 billion and $1.4 billion at March 31, 2026 and December 31, 2025, respectively.

Noninterest Income

The following table presents a comparative summary of the major components of noninterest income for the periods indicated:

Linked quarter comparison

Prior year comparison

Quarter ended

($ in thousands)

March 31,

2026

December 31,

2025

Increase (decrease)

March 31,

2025

Increase (decrease)

Deposit service charges

5,256

5,081

175

4,420

836

Wealth management revenue

2,712

2,642

2,659

Card services revenue

2,535

2,621

(86

)

2,395

140

Tax credit income (loss)

(179

)

3,180

(3,359

)

(106

2,610

(2,789

)

(107

Other income

8,764

11,888

(3,124

)

(26

6,399

2,365

Total noninterest income

19,088

25,412

(6,324

)

(25

18,483

605

Total noninterest income was $19.1 million for the first quarter 2026, a decrease of $6.3 million and an increase of $0.6 million from the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily due to a seasonal decrease in tax credit income and a gain on OREO in the linked quarter that did not reoccur, partially offset by higher private equity fund distributions and a gain on the sale of the guaranteed portion of SBA loans included in other income. Compared to the prior year quarter, tax credit income decreased $2.8 million, partially offset by higher BOLI income and private equity fund distributions. Tax credit income varies based on transaction volumes and fair value changes on credits carried at fair value.

The following table presents a comparative summary of the major components of other income for the periods indicated:

Linked quarter comparison

Prior year comparison

Quarter ended

($ in thousands)

March 31,

2026

December 31,

2025

Increase (decrease)

March 31,

2025

Increase (decrease)

BOLI

2,533

1,925

608

871

1,662

191

Community development investments

1,067

922

145

707

360

Gain on SBA loan sales

1,414

—

1,414

—

1,895

(481

)

(25

Net gain (loss) on OREO

(295

)

6,169

(6,464

)

(105

(318

)

(1,383

Private equity fund distributions

1,837

226

1,611

713

653

1,184

181

Servicing fees

448

517

(69

)

(13

555

(107

)

(19

Swap fees

159

(62

)

(39

)

(4,950

Miscellaneous income

1,663

1,970

(307

)

(16

1,697

(34

)

Total other income

8,764

11,888

(3,124

)

(26

6,399

2,365

The decrease in other income from the linked quarter was primarily due to a $6.2 million net gain on OREO in the linked quarter that did not reoccur, partially offset by a $1.6 million increase in private equity fund distributions, a $1.4 million gain on the sale of $25.4 million of guaranteed SBA loans, and the payout of a BOLI policy that increased BOLI income in the current quarter.

Compared to the prior year quarter, other income increased $2.4 million primarily driven by an increase of $1.7 million in BOLI income due to the purchase of additional life insurance policies, and to a lesser extent, the payout of a BOLI policy, as well as a $1.2 million increase in private equity fund distributions. Private equity fund distributions are not a consistent source of income and fluctuate based on distributions from the underlying funds.

Noninterest Expense

The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:

Linked quarter comparison

Prior year comparison

Quarter ended

($ in thousands)

March 31,

2026

December 31,

2025

Increase (decrease)

March 31,

2025

Increase (decrease)

Employee compensation and benefits

55,759

50,149

5,610

48,208

7,551

Deposit costs

25,996

27,471

(1,475

)

23,823

2,173

Occupancy

5,902

5,764

138

4,430

1,472

Acquisition costs

—

2,548

(2,548

)

(100

—

100

FDIC special assessment

—

(652

)

652

(100

—

100

Other expense

27,480

29,252

(1,772

)

23,322

4,158

Total noninterest expense

115,137

114,532

605

99,783

15,354

Noninterest expense increased $0.6 million and $15.4 million from the linked and prior year quarters, respectively. Employee compensation and benefits increased $5.6 million from the linked quarter primarily due to the first quarter reset of payroll taxes and paid time-off accruals, along with annual merit increases that became effective March 1, 2026. Deposit costs relate to certain businesses in the deposit verticals that receive an earnings credit allowance for deposit-related services provided to us. These earnings credit allowances are impacted by, among other things, interest rates and average balances. Deposit costs decreased $1.5 million from the linked quarter primarily due to the expiration of certain allowances that were not used. The decline in acquisition costs from the linked quarter is due to the completion of the Branch Acquisition that closed in the fourth quarter 2025.

The increase in noninterest expense from the prior year quarter was primarily due to an increase in the associate base as a result of the Branch Acquisition, merit increases throughout 2025 and 2026, an increase of $2.2 million in deposit costs due to higher earnings credit allowances and deposit vertical average balances, and an increase of $1.8 million in loan and legal expenses due to loan workouts and the foreclosure of certain properties. For the first quarter 2026, the core efficiency ratio 5 was 60.2%, compared to 58.3% for the linked quarter and 58.8% for the prior year quarter.

5 Core efficiency ratio, tangible common equity to tangible assets, and tangible book value per common share are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.

Income Taxes

The effective tax rate for the current and linked quarters was 21.5%, respectively, compared to 18.1% in the prior year quarter. The increase in the effective tax rate from the prior year quarter was due to an increase in state taxes from apportionment factors and a decrease in tax credit investments.

Capital

The following table presents total equity and various capital ratios for the most recent five quarters:

($ in thousands)

March 31,

2026*

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

Stockholders’ equity

2,022,204

2,039,386

1,982,332

1,922,899

1,868,073

Total risk-based capital to risk-weighted assets

13.9

14.4

14.7

Tier 1 capital to risk weighted assets

12.9

12.8

13.3

13.2

13.1

Common equity tier 1 capital to risk-weighted assets

11.7

11.6

12.0

11.9

11.8

Leverage ratio

10.4

10.5

11.1

11.0

Tangible common equity to tangible assets 5

9.01

9.07

9.60

9.42

9.30

*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Total equity was $2.0 billion at March 31, 2026, a decrease of $17.2 million and an increase of $154.1 million from the linked and prior year quarters, respectively. Tangible book value per common share 5 was $41.38 at March 31, 2026, compared to $41.37 and $38.54 at December 31, 2025 and March 31, 2025, respectively. The Company repurchased 483,000 shares at an average price of $56.13 in the first quarter 2026. The Company has 631,483 shares remaining under a Board-approved stock repurchase plan.

The Company’s regulatory capital ratios continue to exceed the “well-capitalized” regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

Use of Non-GAAP Financial Measures

The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, return on average common equity, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA, and adjusted diluted earnings per share, in this release that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.

The Company considers its tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, return on average common equity, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA and adjusted diluted earnings per share, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as the FDIC special assessment, acquisition costs, accrued insurance proceeds anticipated to be received as a result of recaptured tax credits, the net gain or loss on OREO and the net gain or loss on sales of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity to tangible assets ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.

The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.

Conference Call and Webcast Information

The Company will host a conference call and webcast at 10:00 a.m. Central Time on Thursday, April 23, 2026. During the call, management will review the first quarter 2026 results and related matters. This press release as well as a related slide presentation will be accessible via the “Investor Relations” page of the Company’s website, https://investor.enterprisebank.com/events-and-presentations, prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-888-500-3691. After connecting, you may say the name of the conference or enter the Conference ID 78356. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC1Q2026EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.

About Enterprise Financial Services Corp

Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $17.2 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.

Enterprise Financial Services Corp’s common stock is traded on the Nasdaq Global Select Market under the symbol “EFSC.” Please visit our website at www.enterprisebank.com to see our regularly posted material information.

Forward-looking Statements

Readers should note that, in addition to the historical information contained herein, this press release contains “forward-looking statements” within the meaning of, and intended to be covered by, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies and goals, and statements about the Company’s expectations regarding revenue and asset growth, financial performance and profitability, loan and deposit growth, liquidity, yields and returns, loan diversification and credit management, stockholder value creation and the impact of acquisitions.

Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “pro forma”, “pipeline” and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. Because forward-looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in the forward-looking statements and future results could differ materially from historical performance. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: the Company’s ability to efficiently integrate acquisitions into its operations, retain the customers of these businesses and grow the acquired operations, the Company’s ability to collect insurance proceeds from claims made related to tax recapture events, credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to general and local economic and market conditions, high unemployment rates, higher inflation and its impacts (including U.S. federal government measures to address higher inflation), impacts of trade and tariff policies, U.S. fiscal debt, budget and tax matters (including the effect of a prolonged U.S. federal government shutdown), and any slowdown in global economic growth, risks associated with rapid increases or decreases in prevailing interest rates, our ability to attract and retain deposits and access to other sources of liquidity, changes in business prospects that could impact goodwill estimates and assumptions, consolidation in the banking industry, competition from banks and other financial institutions, the Company’s ability to attract and retain relationship officers and other key personnel, burdens imposed by federal and state regulation, changes in legislative or regulatory requirements, as well as current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services, changes in accounting policies and practices or accounting standards, natural disasters (including wildfires and earthquakes), terrorist activities, war and geopolitical matters (including in Israel, Iran and Ukraine and the imposition of additional sanctions and export controls in connection therewith), or pandemics, or other health emergencies and their effects on economic and business environments in which we operate, including the related disruption to the financial market and other economic activity, and those factors and risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and the Company’s other filings with the SEC. The Company cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Company’s results.

For any forward-looking statements made in this press release or in any documents, EFSC claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Readers are cautioned not to place undue reliance on any forward-looking statements. Except to the extent required by applicable law or regulation, EFSC disclaims any obligation to revise or publicly release any revision or update to any of the forward-looking statements included herein to reflect events or circumstances that occur after the date on which such statements were made.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited)

Quarter ended

(in thousands, except per share data)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

EARNINGS SUMMARY

Net interest income

166,147

168,174

158,286

152,762

147,516

Provision for credit losses

7,243

9,236

8,447

3,470

5,184

Noninterest income

19,088

25,412

48,624

20,604

18,483

Noninterest expense

115,137

114,532

109,790

105,702

99,783

Income before income tax expense

62,855

69,818

88,673

64,194

61,032

Income tax expense

13,493

15,024

43,438

12,810

11,071

Net income

49,362

54,794

45,235

51,384

49,961

Preferred stock dividends

938

937

938

937

938

Net income available to common stockholders

48,424

53,857

44,297

50,447

49,023

Diluted earnings per common share

1.30

1.45

1.19

1.36

1.31

Adjusted diluted earnings per common share 1

1.31

1.36

1.20

1.37

1.31

Return on average assets

1.16

1.27

1.11

1.30

Adjusted return on average assets 1

1.16

1.19

1.12

1.31

1.29

Return on average common equity 1

9.80

10.95

9.29

11.03

11.10

Adjusted return on average common equity 1

9.84

10.28

9.40

11.12

11.08

ROATCE 1

12.53

14.02

11.56

13.84

14.02

Adjusted ROATCE 1

12.59

13.15

11.70

13.96

13.99

Net interest margin (tax equivalent)

4.28

4.26

4.23

4.21

4.15

Efficiency ratio

62.2

59.2

53.1

61.0

60.1

Core efficiency ratio 1

60.2

58.3

61.0

59.3

58.8

Assets

17,227,828

17,300,884

16,402,405

16,076,299

15,676,594

Average assets

17,311,103

17,099,429

16,178,088

15,859,721

15,642,999

Period end common shares outstanding

36,581

36,965

37,011

36,950

36,928

Dividends per common share

0.33

0.32

0.31

0.30

0.29

Tangible book value per common share 1

41.38

41.37

41.58

40.02

38.54

Tangible common equity to tangible assets 1

9.01

9.07

9.60

9.42

9.30

Total risk-based capital to risk-weighted assets 2

13.9

14.4

14.7

1 Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.

2 Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

(in thousands, except per share data)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

INCOME STATEMENTS

NET INTEREST INCOME

Interest income

225,091

232,273

225,390

218,967

211,780

Interest expense

58,944

64,099

67,104

66,205

64,264

Net interest income

166,147

168,174

158,286

152,762

147,516

Provision for credit losses

7,243

9,236

8,447

3,470

5,184

Net interest income after provision for credit losses

158,904

158,938

149,839

149,292

142,332

NONINTEREST INCOME

Deposit service charges

5,256

5,081

4,935

4,940

4,420

Wealth management revenue

2,712

2,642

2,571

2,584

2,659

Card services revenue

2,535

2,621

2,535

2,444

2,395

Tax credit income (loss)

(179

)

3,180

(300

)

2,207

2,610

Insurance recoveries 1

—

32,112

—

Other income

8,764

11,888

6,771

8,429

6,399

Total noninterest income

19,088

25,412

48,624

20,604

18,483

NONINTEREST EXPENSE

Employee compensation and benefits

55,759

50,149

49,640

50,164

48,208

Deposit costs

25,996

27,471

27,172

24,765

23,823

Occupancy

5,902

5,764

4,895

5,065

4,430

FDIC special assessment

—

(652

)

—

Acquisition costs

—

2,548

609

518

—

Other expense

27,480

29,252

27,474

25,190

23,322

Total noninterest expense

115,137

114,532

109,790

105,702

99,783

Income before income tax expense

62,855

69,818

88,673

64,194

61,032

Income tax expense

13,493

15,024

11,326

12,810

11,071

Tax credit recapture and provision for anticipated tax applied to related insurance recoveries 2

—

32,112

—

Total income tax expense

13,493

15,024

43,438

12,810

11,071

Net income

49,362

54,794

45,235

51,384

49,961

Preferred stock dividends

938

937

938

937

938

Net income available to common stockholders

48,424

53,857

44,297

50,447

49,023

Basic earnings per common share

1.31

1.46

1.20

1.36

1.33

Diluted earnings per common share

1.30

1.45

1.19

1.36

1.31

1 Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event.

2 Represents recapture of $24.1 million solar tax credit and approximately $8.0 million of estimated tax liability related to anticipated proceeds from pending insurance claim related to a third quarter 2025 recapture event.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

($ in thousands)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

BALANCE SHEET

ASSETS

Cash and due from banks

258,542

208,080

208,455

252,817

260,280

Interest-earning deposits

376,824

474,720

264,399

239,602

222,780

Debt and equity investments

3,911,106

3,810,876

3,527,467

3,384,347

3,108,763

Loans held for sale

418

928

681

586

—

Loans

11,692,780

11,800,338

11,583,109

11,408,840

11,298,763

Allowance for credit losses

(142,064

)

(140,022

)

(148,854

)

(145,133

)

(142,944

)

Total loans, net

11,550,716

11,660,316

11,434,255

11,263,707

11,155,819

Fixed assets, net

57,956

58,993

49,248

48,639

48,083

Goodwill

416,968

365,164

Intangible assets, net

19,525

21,175

6,140

6,876

7,628

Other assets

635,773

648,828

546,596

514,561

508,077

Total assets

17,227,828

17,300,884

16,402,405

16,076,299

15,676,594

LIABILITIES AND STOCKHOLDERS’ EQUITY

Noninterest-bearing deposits

4,828,375

4,874,115

4,386,513

4,322,332

4,285,061

Interest-bearing deposits

9,696,022

9,735,227

9,181,399

8,995,027

8,749,169

Total deposits

14,524,397

14,609,342

13,567,912

13,317,359

13,034,230

Subordinated debentures and notes

93,759

93,688

93,617

156,796

156,695

FHLB advances

—

327,000

294,000

205,000

Other borrowings

319,345

387,717

247,006

210,641

255,635

Other liabilities

268,123

170,751

184,538

174,604

156,961

Total liabilities

15,205,624

15,261,498

14,420,073

14,153,400

13,808,521

Stockholders’ equity:

Preferred stock

71,988

Common stock

366

370

369

Additional paid-in capital

990,394

1,000,775

997,446

991,663

988,554

Retained earnings

1,041,038

1,020,840

980,548

947,864

908,553

Accumulated other comprehensive loss

(81,582

)

(54,587

)

(68,020

)

(88,985

)

(101,391

)

Total stockholders’ equity

2,022,204

2,039,386

1,982,332

1,922,899

1,868,073

Total liabilities and stockholders’ equity

17,227,828

17,300,884

16,402,405

16,076,299

15,676,594

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

At or for the quarter ended

($ in thousands)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

LOAN PORTFOLIO

Commercial and industrial

5,168,533

5,231,616

4,943,561

4,870,268

4,729,707

Commercial real estate

5,453,966

5,453,821

5,178,649

5,074,100

5,046,293

Construction real estate

667,703

687,584

858,146

844,497

880,708

Residential real estate

346,181

367,682

365,010

364,281

366,353

Consumer

56,397

59,635

237,743

255,694

275,702

Total loans

11,692,780

11,800,338

11,583,109

11,408,840

11,298,763

DEPOSIT PORTFOLIO

Noninterest-bearing demand accounts

4,828,375

4,874,115

4,386,513

4,322,332

4,285,061

Interest-bearing demand accounts

3,395,680

3,537,334

3,301,621

3,184,670

3,193,903

Money market and savings accounts

4,610,662

4,528,510

4,228,605

4,209,032

4,167,375

Brokered certificates of deposit

724,788

721,977

762,499

752,422

542,172

Other certificates of deposit

964,892

947,406

888,674

848,903

845,719

Total deposits

14,524,397

14,609,342

13,567,912

13,317,359

13,034,230

AVERAGE BALANCES

Loans

11,777,727

11,794,459

11,454,183

11,358,209

11,240,806

Securities

3,782,844

3,623,965

3,353,305

3,149,010

2,930,912

Interest-earning assets

16,065,112

15,971,267

15,135,880

14,822,957

14,650,854

Assets

17,311,103

17,099,429

16,178,088

15,859,721

15,642,999

Deposits

14,609,433

14,537,381

13,604,302

13,245,241

13,141,556

Stockholders’ equity

2,076,504

2,022,472

1,964,126

1,906,089

1,863,272

Tangible common equity 1

1,567,129

1,524,453

1,520,476

1,461,700

1,418,094

YIELDS (tax equivalent)

Loans

6.38

6.51

6.64

6.57

Securities

4.13

4.02

3.93

3.86

3.75

Interest-earning assets

5.77

5.86

5.99

6.00

5.93

Interest-bearing deposits

2.31

2.46

2.67

2.70

2.77

Deposits

1.52

1.64

1.80

1.82

1.83

Subordinated debentures and notes

6.59

6.61

7.78

7.00

6.63

FHLB advances and other borrowed funds

2.92

3.27

3.47

3.48

3.01

Interest-bearing liabilities

2.37

2.52

2.77

2.81

2.84

Net interest margin

4.28

4.26

4.23

4.21

4.15

1 Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Quarter ended

(in thousands, except per share data)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

ASSET QUALITY

Net charge-offs (recoveries)

4,407

20,674

4,057

630

(1,059

)

Nonperforming loans

64,941

82,809

127,878

105,807

109,882

Classified assets

430,288

410,485

352,792

281,162

264,460

Nonperforming loans to total loans

0.56

0.70

1.10

0.93

0.97

Nonperforming assets to total assets

0.87

0.95

0.83

0.71

0.72

Allowance for credit losses to total loans

1.21

1.19

1.29

1.27

Allowance for credit losses to total loans, excluding guaranteed loans 1

1.32

1.29

1.40

1.38

Allowance for credit losses to nonperforming loans

218.8

169.1

116.4

137.2

130.1

Net charge-offs (recoveries) to average loans - annualized

0.15

0.70

0.14

0.02

(0.04

WEALTH MANAGEMENT

Trust assets under management

2,882,919

2,750,803

2,566,784

2,457,471

2,250,004

SHARE DATA

Book value per common share

53.31

53.22

51.62

50.09

48.64

Tangible book value per common share 1

41.38

41.37

41.58

40.02

38.54

Market value per share

54.11

54.00

57.98

55.10

53.74

Period end common shares outstanding

36,581

36,965

37,011

36,950

36,928

Average basic common shares

36,907

36,997

37,015

36,963

36,971

Average diluted common shares

37,152

37,265

37,333

37,172

37,287

CAPITAL

Total risk-based capital to risk-weighted assets 2

13.9

14.4

14.7

Tier 1 capital to risk-weighted assets 2

12.9

12.8

13.3

13.2

13.1

Common equity tier 1 capital to risk-weighted assets 2

11.7

11.6

12.0

11.9

11.8

Tangible common equity to tangible assets 1

9.01

9.07

9.60

9.42

9.30

1 Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.

2 Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.

ENTERPRISE FINANCIAL SERVICES CORP

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Quarter ended

($ in thousands)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

CORE EFFICIENCY RATIO

Net interest income (GAAP)

166,147

168,174

158,286

152,762

147,516

Tax-equivalent adjustment

3,320

3,477

3,045

2,738

2,475

Noninterest income (GAAP)

19,088

25,412

48,624

20,604

18,483

Less insurance recoveries 1

—

32,112

—

Less net gain (loss) on sale of investment securities

—

(57

)

—

106

Less net gain (loss) on OREO

(295

)

6,169

Core revenue (non-GAAP)

188,850

190,951

177,836

176,048

168,345

Noninterest expense (GAAP)

115,137

114,532

109,790

105,702

99,783

Less FDIC special assessment

—

(652

)

—

Less amortization on intangibles

1,400

1,380

736

753

855

Less acquisition costs

—

2,548

609

518

—

Core noninterest expense (non-GAAP)

113,737

111,256

108,445

104,431

98,928

Core efficiency ratio (non-GAAP)

60.2

58.3

61.0

59.3

58.8

1Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event.

Quarter ended

(in thousands, except per share data)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER COMMON SHARE AND TANGIBLE COMMON EQUITY RATIO

Stockholders’ equity (GAAP)

2,022,204

2,039,386

1,982,332

1,922,899

1,868,073

Less preferred stock

71,988

Less goodwill

416,968

365,164

Less intangible assets

19,525

21,175

6,140

6,876

7,628

Tangible common equity (non-GAAP)

1,513,723

1,529,255

1,539,040

1,478,871

1,423,293

Less net unrealized losses on HTM securities, after tax

39,080

26,431

37,341

56,508

55,819

Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP)

1,474,643

1,502,824

1,501,699

1,422,363

1,367,474

Common shares outstanding

36,581

36,965

37,011

36,950

36,928

Tangible book value per common share (non-GAAP)

41.38

41.37

41.58

40.02

38.54

Total assets (GAAP)

17,227,828

17,300,884

16,402,405

16,076,299

15,676,594

Less goodwill

416,968

365,164

Less intangible assets

19,525

21,175

6,140

6,876

7,628

Tangible assets (non-GAAP)

16,791,335

16,862,741

16,031,101

15,704,259

15,303,802

Tangible common equity to tangible assets (non-GAAP)

9.01

9.07

9.60

9.42

9.30

Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP)

8.78

8.91

9.37

9.06

8.94

Quarter ended

($ in thousands)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED EARNINGS PER SHARE

Average stockholder’s equity (GAAP)

2,076,504

2,022,472

1,964,126

1,906,089

1,863,272

Less average preferred stock

71,988

Less average goodwill

416,968

414,858

365,164

Less average intangible assets

20,419

11,173

6,498

7,237

8,026

Average tangible common equity (non-GAAP)

1,567,129

1,524,453

1,520,476

1,461,700

1,418,094

Net income (GAAP)

49,362

54,794

45,235

51,384

49,961

FDIC special assessment (after tax)

—

(488

)

—

Acquisition costs (after tax)

—

1,742

549

462

—

Less net gain (loss) on sale of investment securities (after tax)

—

(43

)

—

Less net gain (loss) on OREO (after tax)

(221

)

4,621

Net income adjusted (non-GAAP)

49,583

51,470

45,779

51,804

49,864

Less preferred stock dividends

938

937

938

937

938

Net income available to common stockholders adjusted (non-GAAP)

48,645

50,533

44,841

50,867

48,926

Return on average common equity (non-GAAP)

9.80

10.95

9.29

11.03

11.10

Adjusted return on average common equity (non-GAAP)

9.84

10.28

9.40

11.12

11.08

ROATCE (non-GAAP)

12.53

14.02

11.56

13.84

14.02

Adjusted ROATCE (non-GAAP)

12.59

13.15

11.70

13.96

13.99

Average assets

17,311,103

17,099,429

16,178,088

15,859,721

15,642,999

Return on average assets (GAAP)

1.16

1.27

1.11

1.30

Adjusted return on average assets (non-GAAP)

1.16

1.19

1.12

1.31

1.29

Average diluted common shares

37,152

37,265

37,333

37,172

37,287

Diluted earnings per share (GAAP)

1.30

1.45

1.19

1.36

1.31

Adjusted diluted earnings per share (non-GAAP)

1.31

1.36

1.20

1.37

1.31

Quarter ended

($ in thousands)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)

Net interest income (GAAP)

166,147

168,174

158,286

152,762

147,516

Noninterest income (GAAP)

19,088

25,412

48,624

20,604

18,483

FDIC special assessment

—

(652

)

—

Acquisition costs

—

2,548

609

518

—

Less net gain (loss) on sale of investment securities

—

(57

)

—

106

Less net gain (loss) on OREO

(295

)

6,169

Less insurance recoveries

—

32,112

—

Less noninterest expense (GAAP)

115,137

114,532

109,790

105,702

99,783

PPNR (non-GAAP)

70,393

74,838

65,610

68,126

66,087

($ in thousands)

Mar 31,

2026

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

ALLOWANCE TO LOANS RATIO EXCLUDING GUARANTEED LOANS

Loans (GAAP)

11,692,780

11,800,338

11,583,109

11,408,840

11,298,763

Less guaranteed loans

935,409

960,132

922,168

913,118

942,651

Adjusted loans (non-GAAP)

10,757,371

10,840,206

10,660,941

10,495,722

10,356,112

Allowance for credit losses

142,064

140,022

148,854

145,133

142,944

Allowance for credit losses/loans (GAAP)

1.21

1.19

1.29

1.27

Allowance for credit losses/adjusted loans (non-GAAP)

1.32

1.29

1.40

1.38