Enterprise Financial Services Corp Reports Fourth Quarter and Full Year 2025 Results

ST. LOUIS--( BUSINESS WIRE)--Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), commented, “I am proud of how we ended 2025, which was another successful year for the Company. The completion of the branch acquisition in Arizona and Kansas during the quarter has enhanced our funding profile and strengthened our position in two important markets.”

Lally added, “We reported diluted earnings per share of $1.45 for the fourth quarter and $5.31 for the full year 2025. Our earnings resulted in a 1.27% ROAA and a 14.02% ROATCE 1 for the fourth quarter. For the full year, we had a 1.24% ROAA and a 13.34% ROATCE. We leveraged our capital position in the year to execute on the branch acquisition, increase our common stock dividends 15% and repurchase $14.1 million of common stock, while still increasing tangible book value by 11% in 2025. This represents the 14th consecutive year that we have increased our tangible book value per share, with an 11% compound annual growth rate during that period. Similarly, we have increased our common stock dividend for 11 consecutive years with a 17% compound annual growth rate.”

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

“I am also pleased that we made significant progress at the end of the year in resolving the large nonperforming credit relationship that has been previously disclosed. As we had expected, we were able to foreclose on the majority of the properties without taking a net loss on the transactions. As we enter a new year, I am confident that we will continue to improve our asset quality metrics and that the investments we have made in our associates and technology, combined with our high customer service levels and a strong balance sheet, will drive financial and operational success in 2026.”

Full-Year Highlights

For 2025, net income was $201.4 million, or $5.31 per diluted share, compared to $185.3 million, or $4.83 per diluted share, in 2024. Pre-provision net revenue (“PPNR”) 2 for 2025 was $274.7 million, compared to $255.2 million in 2024. The increase in PPNR 2 in 2025 was primarily due to higher net interest income that benefited from an organic increase in average interest-earning asset balances and liquidity provided through the branch acquisition, and lower rates paid on interest-bearing liabilities. These increases were partially offset by an increase in noninterest expense due to the branch acquisition, merit increases, higher headcount and higher deposit costs from growth in the deposit verticals.

Net interest income of $626.7 million increased $58.6 million over the prior year. NIM increased to 4.21% in 2025, from 4.16% in 2024, primarily due to higher average loan and securities balances, as well as higher yields on the securities portfolio. Average loans and securities increased $472.6 million and $753.8 million, respectively, compared to 2024. While the decline in market interest rates reduced the yield on loans 28 basis points, the yield on securities increased 51 basis points. Net interest income in 2025 also benefited from lower short-term interest rates that decreased deposit interest expense. 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.

Noninterest income was $113.1 million, an increase of $43.4 million from $69.7 million in 2024. Noninterest income in 2025 includes $32.1 million of anticipated insurance proceeds from a pending claim related to a recapture event during the third quarter 2025 with respect to a $24.1 million solar tax credit. There is an offsetting amount of $32.1 million in income tax expense related to the solar tax credit recapture.

Noninterest expense was $429.8 million in 2025, a 12% increase from $385.0 million in 2024. The increase was primarily from higher deposit costs due to an increase in average deposit vertical balances, an increase in compensation due an expanded associate base and the onboarding of the associates from the branch acquisition, along with other expenses related to the branch acquisition. The increase was partially offset by a $4.9 million decline in core conversion expenses due to the completion of the core implementation in the fourth quarter 2024. The core efficiency ratio 2 was 59.3% in 2025, compared to 58.4% in 2024.

Nonperforming assets were 0.95% of total assets at the end of 2025, compared to 0.30% at the end of 2024. Net charge-offs were 0.21% of average loans in 2025, compared to 0.16% in 2024. The allowance for credit losses was 1.19% of total loans at the end of 2025, compared to 1.23% at the end of 2024. Excluding guaranteed portions of loans, the allowance to loans ratio 2 was 1.29% and 1.34% at the end of 2025 and 2024, respectively. The provision for credit losses was $26.3 million and $21.5 million in 2025 and 2024, respectively.

The Company maintained a strong liquidity position in 2025, with total deposits of $14.6 billion, a loan-to-deposit ratio of 80.8% and cash and investment securities of $4.5 billion as of December 31, 2025. This compares to total deposits of $13.1 billion, a loan-to-deposit ratio of 85.3% and cash and investment securities of $3.6 billion at the end of 2024. Noninterest-bearing deposits comprise 33.4% of total deposits at December 31, 2025, compared to 34.1% at the end of 2024. Excluding brokered certificates of deposits, core deposits as of December 31, 2025 totaled $13.9 billion, an increase of $1.2 billion from the prior year.

2 PPNR, core efficiency ratio, and allowance to loans ratio excluding guaranteed loans are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

Total stockholders’ equity was $2.0 billion and $1.8 billion as of December 31, 2025 and December 31, 2024, respectively. The increase was primarily due to net income of $201.4 million, offset by dividends and $14.1 million of common stock repurchases in 2025. The Company returned $45.1 million, or $1.22 per share, to common stockholders and $3.8 million, or $50.00 per share, to preferred stockholders in 2025.

Fourth Quarter Highlights

3 Adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures 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 our average interest-earning assets and interest-bearing liabilities, as well as, the corresponding interest rates earned and paid, all on a tax-equivalent basis.

Quarter ended

December 31, 2025

September 30, 2025

December 31, 2024

($ 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

11,794,459

193,587

6.51

11,454,183

191,589

6.64

11,100,112

187,761

6.73

Taxable securities

2,331,562

24,464

4.16

2,100,748

21,705

4.10

1,693,257

15,566

3.66

Non-taxable securities 2

1,292,403

12,263

3.76

1,252,557

11,503

3.64

1,054,806

8,713

3.29

Total securities

3,623,965

36,727

4.02

3,353,305

33,208

3.93

2,748,063

24,279

3.51

Interest-earning deposits

552,843

5,436

3.90

328,392

3,638

4.40

474,878

5,612

4.70

Total interest-earning assets

15,971,267

235,750

5.86

15,135,880

228,435

5.99

14,323,053

217,652

6.05

Noninterest-earning assets

1,128,162

1,042,208

986,524

Total assets

17,099,429

16,178,088

15,309,577

Liabilities and Stockholders’ Equity

Interest-bearing liabilities:

Interest-bearing demand accounts

3,550,349

17,236

1.93

3,298,022

17,488

2.10

3,238,964

19,517

2.40

Money market accounts

3,948,405

27,611

2.77

3,706,891

28,734

3.08

3,588,326

30,875

3.42

Savings accounts

540,764

168

0.12

532,015

183

0.14

547,176

278

0.20

Certificates of deposit

1,659,905

15,223

3.64

1,609,346

15,210

3.75

1,361,575

14,323

4.18

Total interest-bearing deposits

9,699,423

60,238

2.46

9,146,274

61,615

2.67

8,736,041

64,993

2.96

Subordinated debentures and notes

93,654

1,561

6.61

136,895

2,683

7.78

156,472

2,634

6.70

FHLB advances

11,620

127

4.34

106,130

1,207

4.51

3,370

4.96

Securities sold under agreements to repurchase

170,058

1,065

2.48

159,039

1,155

2.88

156,082

1,245

3.17

Other borrowings

97,196

1,108

4.52

56,164

444

3.14

36,201

1.05

Total interest-bearing liabilities

10,071,951

64,099

2.52

9,604,502

67,104

2.77

9,088,166

69,010

3.02

Noninterest-bearing liabilities:

Demand deposits

4,837,958

4,458,028

4,222,115

Other liabilities

167,048

151,432

154,787

Total liabilities

15,076,957

14,213,962

13,465,068

Stockholders' equity

2,022,472

1,964,126

1,844,509

Total liabilities and stockholders' equity

17,099,429

16,178,088

15,309,577

Total net interest income

171,651

161,331

148,642

Net interest margin

4.26

4.23

4.13

1 Average balances include nonaccrual loans. Interest income includes loan fees of $1.7 million, $1.9 million, and $2.4 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, 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 $3.5 million, $3.0 million, and $2.3 million for the three months ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively.

Net interest income for the fourth quarter was $168.2 million, an increase of $9.9 million and $21.8 million from the linked and prior year quarters, respectively. Net interest income on a tax equivalent basis was $171.7 million, $161.3 million, and $148.6 million for the current, linked and prior year quarters, respectively. The increase from the linked and prior year quarters was primarily due to growth in interest-earning assets and lower rates paid on interest-bearing liabilities, specifically money market accounts and interest-bearing transaction accounts. In the linked quarter, the Company redeemed $63.3 million of subordinated debt at a floating rate of three-month Term SOFR plus a spread of 5.66% that was replaced by a $63.3 million single advance term loan. The term loan is payable in quarterly installments on March 31, June 30, September 30 and December 31 with a final installment due on the five year anniversary of the initial advance date. The interest rate on the term loan is one-month Term SOFR plus 2.50%.

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 fourth quarter increased $6.9 million and $16.9 million as compared to the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to an increase of $340.3 million in average loan balances, primarily from the branch acquisition during the quarter, a $270.7 million increase in average securities balance as we deployed liquidity from the branch acquisition into yielding assets, and a nine basis point increase in the yield on securities due to new purchases and reinvestment of cash flows from the runoff of lower yielding investments. Compared to the prior year quarter, interest-earning assets increased $1.6 billion. Continued success in organic and acquired deposit generation has increased liquidity, which has been primarily deployed into the securities portfolio.

The average interest rate of new loan originations in the fourth quarter 2025 was 6.75%, a decrease of 23 basis points from the linked quarter. Investment purchases in the fourth quarter 2025 had a weighted average, tax equivalent yield of 4.61%.

Interest expense decreased $3.0 million and $4.9 million in the fourth quarter 2025 as compared to the linked and prior year quarters primarily due to decreased interest paid on interest-bearing deposits. The average cost of interest-bearing deposits was 2.46%, a decrease of 21 and 50 basis points compared to the linked and prior year quarters, respectively. The total cost of deposits, including noninterest-bearing demand accounts, was 1.64% during the fourth quarter 2025, compared to 1.80% and 2.00% in the linked and prior year quarters, respectively.

NIM, on a tax equivalent basis, was 4.26% in the fourth quarter 2025, an increase of three basis points and 13 basis points from the linked and prior year quarters, respectively. Included in net interest income and NIM is the net amortization of purchase accounting premiums and discounts from acquired loan portfolios. The net amount of amortization or accretion each quarter is impacted by repayment patterns on the individual loans with a premium or discount. The net effect of loan purchase accounting amortization did not effect NIM in the fourth quarter, while it reduced NIM two basis points in both the linked and prior year quarters. For the month of December 2025, the loan portfolio yield was 6.53% and the cost of total deposits was 1.59%.

Investments

December 31, 2025

September 30, 2025

December 31, 2024

($ in thousands)

Carrying

Value

Net Unrealized

Loss

Carrying

Value

Net Unrealized

Loss

Carrying

Value

Net Unrealized

Loss

Available-for-sale (AFS)

2,655,035

(83,258

)

2,351,493

(102,269

)

1,862,270

(163,212

)

Held-to-maturity (HTM)

1,074,957

(35,288

)

1,081,847

(49,656

)

928,935

(70,321

)

Total

3,729,992

(118,546

)

3,433,340

(151,925

)

2,791,205

(233,533

)

Investment securities totaled $3.7 billion at December 31, 2025, an increase of $296.7 million from the linked quarter. Tangible common equity to tangible assets adjusted for unrealized losses on held-to-maturity securities 5 was 8.91% at December 31, 2025, compared to 9.37% at September 30, 2025.

5 Tangible common equity to tangible assets adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Please 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:

December 31, 2025

($ in thousands)

Legacy

EFSC***

Branch

Acquisition***

Consolidated

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

C&I

2,521,959

84,513

2,606,472

2,320,868

2,316,609

2,198,802

2,139,032

CRE investor owned

2,702,061

84,078

2,786,139

2,626,657

2,547,859

2,487,375

2,405,356

CRE owner occupied

1,286,900

117,804

1,404,704

1,296,902

1,281,572

1,292,162

1,305,025

SBA loans*

1,262,456

—

1,262,456

1,257,817

1,249,225

1,283,067

1,298,007

Sponsor finance*

694,905

—

694,905

774,142

771,280

784,017

782,722

Life insurance premium finance*

1,187,128

—

1,187,128

1,151,700

1,155,623

1,149,119

1,114,299

Tax credits*

802,818

—

802,818

780,767

708,401

677,434

760,229

Residential real estate

357,616

4,662

362,278

359,315

356,722

357,615

350,640

Construction and land development

633,651

152

633,803

784,218

773,122

800,985

794,240

Consumer**

58,889

746

59,635

230,723

248,427

268,187

270,805

Total loans

11,508,383

291,955

11,800,338

11,583,109

11,408,840

11,298,763

11,220,355

Quarterly loan yield

6.51

6.64

6.57

6.73

Loans by rate type (to total loans):

Fixed

Variable:

SOFR

Prime

Other

Variable interest 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.

***Amounts reported are as of December 31, 2025 and are separately shown attributable to the acquired branches’ loan portfolio acquired on October 10, 2025, and the Company’s pre-branch acquisition loan portfolio.

Loans totaled $11.8 billion at December 31, 2025, increasing $217.2 million from the linked quarter. The increase was driven primarily by $292.0 million of loans acquired in the branch acquisition, partially offset by the $68.1 million book value of loans transferred to OREO in the quarter. Average line utilization was approximately 44% for the quarter ended December 31, 2025, compared to 45% 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)

December 31,

2025

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Nonperforming loans*

82,809

127,878

105,807

109,882

42,687

Other 1

81,544

7,821

8,221

3,271

3,955

Nonperforming assets*

164,353

135,699

114,028

113,153

46,642

Nonperforming loans to total loans

0.70

1.10

0.93

0.97

0.38

Nonperforming assets to total assets

0.95

0.83

0.71

0.72

0.30

Allowance for credit losses

140,022

148,854

145,133

142,944

137,950

Allowance for credit losses to loans

1.19

1.29

1.27

1.23

Allowance for credit losses to nonperforming loans*

169.1

116.4

137.2

130.1

323.2

Quarterly net charge-offs (recoveries)

20,674

4,057

630

(1,059

)

7,131

*Guaranteed balances excluded

28,903

33,475

26,536

22,607

21,974

1OREO and repossessed assets

Nonperforming assets increased $28.7 million during the fourth quarter 2025 and increased $117.7 million from the prior year quarter. The increase in nonperforming assets from the prior year quarter is primarily related to seven commercial real estate loans to special purpose entities (each an “SPE Borrower”) affiliated with two commercial banking relationships in Southern California that share some common ownership. Litigation resulting from a business dispute between the owners of the entities resulted in all of the SPE Borrowers filing bankruptcy in the first quarter of 2025, which was subsequently dismissed.

In the current quarter, the Company foreclosed on six of the seven properties serving as collateral for the loans. The six properties with a book value of $67.6 million were transferred to OREO at fair market value, less selling costs, resulting in a charge-off of $4.0 million and a gain on transfer of $6.2 million. While the charge-off and gain are reported in different income statement line items (provision for credit losses and noninterest income, respectively), the foreclosure of these properties resulted in a net gain of $2.2 million. It is anticipated that the seventh property with a book value of $4.0 million will be foreclosed on in the first quarter of 2026. The following table provides a summary of the foreclosed properties by collateral type:

($ in thousands)

Fair market

value, less

selling costs

Carrying

value

Charge-off

Gain

Commercial real estate - investor owned:

Multifamily

13,240

17,209

3,969

—

Mixed use

49,760

44,341

—

2,066

Total commercial real estate - investor owned

63,000

61,550

3,969

2,066

Residential real estate:

Duplex

3,520

1,792

—

1,567

Condominiums

6,960

4,211

—

2,547

Total residential real estate

10,480

6,003

—

4,114

Total

73,480

67,553

3,969

6,180

Other than these foreclosures, the change in nonperforming assets from the linked quarter was driven primarily by net charge-offs of $20.7 million and a relationship with two loans totaling $28.0 million that went on nonaccrual. These loans are well-secured with real estate collateral and the Company expects to collect the full value of the outstanding loans. Annualized net charge-offs totaled 70 basis points of average loans in the fourth quarter 2025, compared to 14 basis points in the linked quarter and 26 basis points in the prior year quarter. Net charge-offs totaled 21 basis points of average loans in 2025, compared to 16 basis points in 2024.

The provision for credit losses totaled $9.2 million in the fourth quarter 2025, compared to $8.4 million and $6.8 million in the linked and prior year quarters, respectively. The provision for credit losses in the fourth quarter 2025 was primarily related to net charge-offs. The Company adopted a new accounting standard in the current quarter that resulted in the $3.3 million credit mark on the acquired loan portfolio from the branch acquisition being added directly to the allowance for credit losses in purchase accounting and no provision for credit losses was recognized on the acquired loans.

Deposits

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

December 31, 2025

($ in thousands)

Legacy

EFSC a

Branch

Acquisition a

Consolidated

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Noninterest-bearing demand accounts

4,661,613

212,502

4,874,115

4,386,513

4,322,332

4,285,061

4,484,072

Interest-bearing demand accounts

3,428,162

109,172

3,537,334

3,301,621

3,184,670

3,193,903

3,175,292

Money market and savings accounts

4,288,521

239,989

4,528,510

4,228,605

4,209,032

4,167,375

4,117,524

Brokered certificates of deposit

721,977

—

721,977

762,499

752,422

542,172

484,588

Other certificates of deposit

899,573

47,833

947,406

888,674

848,903

845,719

885,016

Total deposit portfolio

13,999,846

609,496

14,609,342

13,567,912

13,317,359

13,034,230

13,146,492

Noninterest-bearing deposits to total deposits

33.4

32.3

32.5

32.9

34.1

Total costs of deposits

1.64

1.80

1.82

1.83

2.00

a Amounts reported are as of December 31, 2025 and are separately shown attributable to the acquired branches’ deposit portfolio acquired on October 10, 2025, and the Company’s pre-branch acquisition deposit portfolio.

Total deposits at December 31, 2025 were $14.6 billion, an increase of $1.0 billion and $1.5 billion from the linked and prior year quarters, respectively. Excluding brokered certificates of deposits, deposits increased $1.1 billion and $1.2 billion from the linked and prior year quarters, respectively. The increase was driven primarily by $609.5 million of deposits acquired in the branch acquisition and organic growth. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.4 billion at both December 31, 2025 and September 30, 2025.

Noninterest Income

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

Quarter ended

Linked quarter comparison

Prior year comparison

($ in thousands)

December 31,

2025

September 30,

2025

Increase

(decrease)

December 31,

2024

Increase

(decrease)

Deposit service charges

5,081

4,935

146

4,730

351

Wealth management revenue

2,642

2,571

2,719

(77

)

Card services revenue

2,621

2,535

2,484

137

Tax credit income (loss)

3,180

(300

)

3,480

6,018

(2,838

)

(47

Anticipated insurance recoveries

—

32,112

(32,112

)

(100

—

Net gain (loss) on OREO

6,169

6,162

(68

)

6,237

Other income

5,719

6,764

(1,045

)

(15

4,748

971

Total noninterest income

25,412

48,624

(23,212

)

(48

20,631

4,781

NM - Not meaningful

Total noninterest income for the fourth quarter 2025 was $25.4 million, a decrease of $23.2 million and an increase of $4.8 million from the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily driven by the $32.1 million in accrued insurance proceeds that are anticipated to be received as a result of the recaptured tax credits recognized in the linked quarter that did not reoccur, partially offset by a $6.2 million net gain on OREO and an increase of $3.5 million in tax credit income. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes on credits carried at fair value. The increase from the prior year quarter was primarily due to a $6.2 million net gain on OREO, partially offset by a $2.8 million decrease in tax credit income.

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

Quarter ended

Linked quarter comparison

Prior year comparison

($ in thousands)

December 31,

2025

September 30,

2025

Increase

(decrease)

December 31,

2024

Increase

(decrease)

BOLI

1,925

2,062

(137

)

895

1,030

115

Community development investments

922

309

613

198

297

625

210

Gain on SBA loan sales

—

1,140

(1,140

)

(100

—

Private equity fund distributions

226

626

(400

)

(64

320

(94

)

(29

Servicing fees

517

587

(70

)

(12

528

(11

)

Swap fees

159

341

(182

)

(53

972

(813

)

(84

Miscellaneous income

1,970

1,699

271

1,736

234

Total other income

5,719

6,764

(1,045

)

(15

4,748

971

Other income in the fourth quarter 2025 decreased $1.0 million and increased $1.0 million compared to the linked and prior year quarters, respectively. The decrease from the linked quarter was primarily driven by a gain on SBA loan sales in the linked quarter that did not reoccur in the current period. Compared to the prior year quarter, the increase in other income was related to an increase in BOLI income due to the purchase of additional life insurance policies and higher community development investment income, partially offset by lower swap fee income. Community development investment income is not a consistent source of income and fluctuates 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:

Quarter ended

Linked quarter comparison

Prior year comparison

December 31, 2025

($ in thousands)

Legacy

EFSC a

Branch

Acquisition a

Consolidated

September

30, 2025

Increase

(decrease)

December

31, 2024

Increase

(decrease)

Employee compensation and benefits

48,029

2,120

50,149

49,640

509

46,168

3,981

Deposit costs

27,471

—

27,471

27,172

299

22,881

4,590

Occupancy

5,006

758

5,764

4,895

869

4,336

1,428

Core conversion expense

—

1,893

(1,893

)

(100

Acquisition costs

2,548

—

2,548

609

1,939

318

—

2,548

—

FDIC special assessment

(652

)

—

(652

)

—

(652

)

—

(652

)

—

Other expense

27,888

1,364

29,252

27,474

1,778

24,244

5,008

Total noninterest expense

110,290

4,242

114,532

109,790

4,742

99,522

15,010

a Amounts reported are for the quarter ended December 31, 2025 and are separately shown attributable to the acquired branches’ noninterest expense, and the Company’s legacy branch noninterest expense.

Noninterest expense was $114.5 million for the fourth quarter 2025, a $4.7 million and $15.0 million increase from the linked and prior year quarters, respectively. Acquisition costs related to the branch acquisition that was completed during the current quarter increased $1.9 million compared to the linked quarter. Employee compensation and benefits increased $4.0 million from the prior year quarter because of an increase in the associate base and merit increases throughout 2025. Compared to the prior year quarter, the increase was also related to an increase in acquisition costs of $2.5 million and an increase of $4.6 million in deposit costs due to higher average deposit vertical balances.

For the fourth quarter 2025, the Company’s core efficiency ratio 6 was 58.3% for the quarter ended December 31, 2025, compared to 61.0% for the linked quarter and 57.1% for the prior year quarter.

6 Core efficiency ratio and adjusted effective tax rate are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.

Income Taxes

The Company’s effective tax rate was 21.5% in the fourth quarter 2025, compared to 49.0% and 19.5% in the linked and prior year quarters, respectively. Included in tax expense during the linked quarter was $24.1 million in transferrable tax credits that were recaptured as discussed above and approximately $8.0 million of incremental tax liability attributable to the anticipated insurance proceeds from the insured recaptured credits. Excluding the impact of the recaptured tax credits and related insurance proceeds, the adjusted effective tax rate 6 for the third quarter 2025 was 20.0%. As part of the normal, ongoing review of state tax apportionment, the Company's state statutory tax rate was increased in the fourth quarter. Due to the increase, the Company’s federal and state statutory tax rate is a combined 25.1%, and after adjusting for permanent tax differences, the Company’s adjusted effective tax rate for 2025 is approximately 20.0%.

Capital

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

($ in thousands)

December 31,

2025*

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

Stockholders’ equity

2,039,386

1,982,332

1,922,899

1,868,073

1,824,002

Total risk-based capital to risk-weighted assets

13.9

14.4

14.7

14.6

Tier 1 capital to risk-weighted assets

12.8

13.3

13.2

13.1

Common equity tier 1 capital to risk-weighted assets

11.6

12.0

11.9

11.8

Leverage ratio

10.5

11.1

11.0

11.1

Tangible common equity to tangible assets

9.07

9.60

9.42

9.30

9.05

*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 December 31, 2025, an increase of $57.1 million from the linked quarter. The Company’s tangible common book value per common share 7 was $41.37 at December 31, 2025, compared to $41.58 and $37.27 in the linked and prior year quarters, respectively.

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, adjusted effective tax rate, 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, 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.

7 Tangible common book value per common share is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.

The Company considers its tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, adjusted effective tax rate, 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, 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, core conversion expenses, acquisition costs, accrued insurance proceeds anticipated to be received as a result of recaptured tax credits, net gain or loss on OREO, and 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 tangible common equity to tangible assets 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 Tuesday, January 27, 2026. During the call, management will review the fourth quarter 2025 results and related matters. This press release as well as a related slide presentation will be accessible on the Company’s website at www.enterprisebank.com under “Investor Relations” prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-800-715-9871. After connecting, you may say the name of the conference or enter the Conference ID 30174. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC4Q2025EarningsCallRegistration. 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 $17.3 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 Stock 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 the war in Israel and potential for a broader regional conflict and the war in 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, 2024, 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

Year ended

(in thousands, except per share data)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

EARNINGS SUMMARY

Net interest income

168,174

158,286

152,762

147,516

146,370

626,738

568,096

Provision for credit losses

9,236

8,447

3,470

5,184

6,834

26,337

21,508

Noninterest income

25,412

48,624

20,604

18,483

20,631

113,123

69,703

Noninterest expense

114,532

109,790

105,702

99,783

99,522

429,807

385,047

Income before income tax expense

69,818

88,673

64,194

61,032

60,645

283,717

231,244

Income tax expense

15,024

43,438

12,810

11,071

11,811

82,343

45,978

Net income

54,794

45,235

51,384

49,961

48,834

201,374

185,266

Preferred stock dividends

937

938

937

938

937

3,750

Net income available to common stockholders

53,857

44,297

50,447

49,023

47,897

197,624

181,516

Diluted earnings per common share

1.45

1.19

1.36

1.31

1.28

5.31

4.83

Adjusted diluted earnings per share 1

1.36

1.20

1.37

1.31

1.32

5.24

4.88

Return on average assets

1.27

1.11

1.30

1.27

1.24

1.25

Adjusted return on average assets 1

1.19

1.12

1.31

1.29

1.31

1.23

1.26

Return on average common equity

10.95

9.29

11.03

11.10

10.75

10.58

10.60

Adjusted return on average common equity 1

10.28

9.40

11.12

11.08

10.45

10.71

ROATCE 1

14.02

11.56

13.84

14.02

13.63

13.34

13.58

Adjusted ROATCE 1

13.15

11.70

13.96

13.99

14.05

13.17

13.71

Net interest margin (tax equivalent)

4.26

4.23

4.21

4.15

4.13

4.21

4.16

Efficiency ratio

59.2

53.1

61.0

60.1

59.6

58.1

60.4

Core efficiency ratio 1

58.3

61.0

59.3

58.8

57.1

59.3

58.4

Assets

17,300,884

16,402,405

16,076,299

15,676,594

15,596,431

Average assets

17,099,429

16,178,088

15,859,721

15,642,999

15,309,577

16,199,003

14,841,690

Period end common shares outstanding

36,965

37,011

36,950

36,928

36,988

Dividends per common share

0.32

0.31

0.30

0.29

0.28

1.22

1.06

Tangible book value per common share 1

41.37

41.58

40.02

38.54

37.27

Tangible common equity to tangible assets 1

9.07

9.60

9.42

9.30

9.05

Total risk-based capital to risk-weighted assets 2

13.9

14.4

14.7

14.6

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

2Capital 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

Year ended

(in thousands, except per share data)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

INCOME STATEMENTS

NET INTEREST INCOME

Interest income

232,273

225,390

218,967

211,780

215,380

888,410

851,051

Interest expense

64,099

67,104

66,205

64,264

69,010

261,672

282,955

Net interest income

168,174

158,286

152,762

147,516

146,370

626,738

568,096

Provision for credit losses

9,236

8,447

3,470

5,184

6,834

26,337

21,508

Net interest income after provision for credit losses

158,938

149,839

149,292

142,332

139,536

600,401

546,588

NONINTEREST INCOME

Deposit service charges

5,081

4,935

4,940

4,420

4,730

19,376

18,344

Wealth management revenue

2,642

2,571

2,584

2,659

2,719

10,456

10,452

Card services revenue

2,621

2,535

2,444

2,395

2,484

9,995

9,966

Tax credit income (loss)

3,180

(300

)

2,207

2,610

6,018

7,697

8,954

Insurance recoveries 1

—

32,112

—

32,112

—

Other income

11,888

6,771

8,429

6,399

4,680

33,487

21,987

Total noninterest income

25,412

48,624

20,604

18,483

20,631

113,123

69,703

NONINTEREST EXPENSE

Employee compensation and benefits

50,149

49,640

50,164

48,208

46,168

198,161

181,313

Deposit costs

27,471

27,172

24,765

23,823

22,881

103,231

88,645

Occupancy

5,764

4,895

5,065

4,430

4,336

20,154

17,231

FDIC special assessment

(652

)

—

(652

)

625

Core conversion expense

—

1,893

—

4,868

Acquisition costs

2,548

609

518

—

3,675

—

Other expense

29,252

27,474

25,190

23,322

24,244

105,238

92,365

Total noninterest expense

114,532

109,790

105,702

99,783

99,522

429,807

385,047

Income before income tax expense

69,818

88,673

64,194

61,032

60,645

283,717

231,244

Income tax expense

15,024

11,326

12,810

11,071

11,811

50,231

45,978

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

—

32,112

—

32,112

—

Total income tax expense

15,024

43,438

12,810

11,071

11,811

82,343

45,978

Net income

54,794

45,235

51,384

49,961

48,834

201,374

185,266

Preferred stock dividends

937

938

937

938

937

3,750

Net income available to common stockholders

53,857

44,297

50,447

49,023

47,897

197,624

181,516

Basic earnings per common share

1.46

1.20

1.36

1.33

1.29

5.34

4.86

Diluted earnings per common share

1.45

1.19

1.36

1.31

1.28

5.31

4.83

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

2Represents 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 the recapture event.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

($ in thousands)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

BALANCE SHEETS

ASSETS

Cash and due from banks

208,080

208,455

252,817

260,280

270,975

Interest-earning deposits

474,720

264,399

239,602

222,780

495,076

Debt and equity investments

3,810,876

3,527,467

3,384,347

3,108,763

2,863,989

Loans held for sale

928

681

586

—

110

Loans

11,800,338

11,583,109

11,408,840

11,298,763

11,220,355

Allowance for credit losses

(140,022

)

(148,854

)

(145,133

)

(142,944

)

(137,950

)

Total loans, net

11,660,316

11,434,255

11,263,707

11,155,819

11,082,405

Fixed assets, net

58,993

49,248

48,639

48,083

45,009

Goodwill

416,968

365,164

Intangible assets, net

21,175

6,140

6,876

7,628

8,484

Other assets

648,828

546,596

514,561

508,077

465,219

Total assets

17,300,884

16,402,405

16,076,299

15,676,594

15,596,431

LIABILITIES AND STOCKHOLDERS’ EQUITY

Noninterest-bearing deposits

4,874,115

4,386,513

4,322,332

4,285,061

4,484,072

Interest-bearing deposits

9,735,227

9,181,399

8,995,027

8,749,169

8,662,420

Total deposits

14,609,342

13,567,912

13,317,359

13,034,230

13,146,492

Subordinated debentures and notes

93,688

93,617

156,796

156,695

156,551

FHLB advances

—

327,000

294,000

205,000

—

Other borrowings

387,717

247,006

210,641

255,635

280,821

Other liabilities

170,751

184,538

174,604

156,961

188,565

Total liabilities

15,261,498

14,420,073

14,153,400

13,808,521

13,772,429

Stockholders’ equity:

Preferred stock

71,988

Common stock

370

369

370

Additional paid-in capital

1,000,775

997,446

991,663

988,554

990,733

Retained earnings

1,020,840

980,548

947,864

908,553

877,629

Accumulated other comprehensive loss

(54,587

)

(68,020

)

(88,985

)

(101,391

)

(116,718

)

Total stockholders’ equity

2,039,386

1,982,332

1,922,899

1,868,073

1,824,002

Total liabilities and stockholders’ equity

17,300,884

16,402,405

16,076,299

15,676,594

15,596,431

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

Year ended

December 31, 2025

December 31, 2024

($ in thousands)

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

AVERAGE BALANCE SHEET

ASSETS

Interest-earning assets:

Loans 1, 2

11,463,410

755,222

6.59

10,990,774

755,448

6.87

Taxable securities

2,057,017

83,734

4.07

1,512,132

53,167

3.52

Nontaxable securities 2

1,209,424

43,623

3.61

1,000,558

31,963

3.19

Total securities

3,266,441

127,357

3.90

2,512,690

85,130

3.39

Interest-earning deposits

418,980

17,566

4.19

368,221

18,918

5.14

Total interest-earning assets

15,148,831

900,145

5.94

13,871,685

859,496

6.20

Noninterest-earning assets

1,050,172

970,005

Total assets

16,199,003

14,841,690

LIABILITIES AND STOCKHOLDERS’ EQUITY

Interest-bearing liabilities:

Interest-bearing demand accounts

3,311,368

68,932

2.08

3,033,616

76,932

2.54

Money market accounts

3,730,110

113,286

3.04

3,494,497

127,651

3.65

Savings accounts

535,021

724

0.14

567,147

1,261

0.22

Certificates of deposit

1,533,608

58,156

3.79

1,371,009

58,764

4.29

Total interest-bearing deposits

9,110,107

241,098

2.65

8,466,269

264,608

3.13

Subordinated debentures and notes

135,809

9,543

7.03

156,260

10,497

6.72

FHLB advances

75,027

3,422

4.56

30,363

1,691

5.57

Securities sold under agreements to repurchase

201,001

5,829

2.90

164,959

5,667

3.44

Other borrowings

56,610

1,780

3.14

37,833

492

1.30

Total interest-bearing liabilities

9,578,554

261,672

2.73

8,855,684

282,955

3.20

Noninterest-bearing liabilities:

Demand deposits

4,525,761

4,042,368

Other liabilities

155,194

159,463

Total liabilities

14,259,509

13,057,515

Stockholders' equity

1,939,494

1,784,175

Total liabilities and stockholders' equity

16,199,003

14,841,690

Total net interest income

638,473

576,541

Net interest margin

4.21

4.16

1 Average balances include nonaccrual loans. Interest income includes loan fees of $7.0 million and $9.6 million for the years ended December 31, 2025 and December 31, 2024, 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 $11.7 million and $8.4 million for the years ended December 31, 2025 and December 31, 2024, respectively.

ENTERPRISE FINANCIAL SERVICES CORP

CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

At or for the quarter ended

($ in thousands)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

LOAN PORTFOLIO

Commercial and industrial

5,231,616

4,943,561

4,870,268

4,729,707

4,716,689

Commercial real estate

5,453,821

5,178,649

5,074,100

5,046,293

4,974,787

Construction real estate

687,584

858,146

844,497

880,708

891,059

Residential real estate

367,682

365,010

364,281

366,353

359,263

Consumer

59,635

237,743

255,694

275,702

278,557

Total loans

11,800,338

11,583,109

11,408,840

11,298,763

11,220,355

DEPOSIT PORTFOLIO

Noninterest-bearing demand accounts

4,874,115

4,386,513

4,322,332

4,285,061

4,484,072

Interest-bearing demand accounts

3,537,334

3,301,621

3,184,670

3,193,903

3,175,292

Money market and savings accounts

4,528,510

4,228,605

4,209,032

4,167,375

4,117,524

Brokered certificates of deposit

721,977

762,499

752,422

542,172

484,588

Other certificates of deposit

947,406

888,674

848,903

845,719

885,016

Total deposits

14,609,342

13,567,912

13,317,359

13,034,230

13,146,492

AVERAGE BALANCES

Loans

11,794,459

11,454,183

11,358,209

11,240,806

11,100,112

Securities

3,623,965

3,353,305

3,149,010

2,930,912

2,748,063

Interest-earning assets

15,971,267

15,135,880

14,822,957

14,650,854

14,323,053

Assets

17,099,429

16,178,088

15,859,721

15,642,999

15,309,577

Deposits

14,537,381

13,604,302

13,245,241

13,141,556

12,958,156

Stockholders’ equity

2,022,472

1,964,126

1,906,089

1,863,272

1,844,509

Tangible common equity 1

1,524,453

1,520,476

1,461,700

1,418,094

1,398,427

YIELDS (tax equivalent)

Loans

6.51

6.64

6.57

6.73

Securities

4.02

3.93

3.86

3.75

3.51

Interest-earning assets

5.86

5.99

6.00

5.93

6.05

Interest-bearing deposits

2.46

2.67

2.70

2.77

2.96

Deposits

1.64

1.80

1.82

1.83

2.00

Subordinated debentures and notes

6.61

7.78

7.00

6.63

6.70

FHLB advances and other borrowed funds

3.27

3.47

3.48

3.01

2.81

Interest-bearing liabilities

2.52

2.77

2.81

2.84

3.02

Net interest margin

4.26

4.23

4.21

4.15

4.13

1Refer to Reconciliations of Non-GAAP Financial Measures table 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)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

ASSET QUALITY

Net charge-offs (recoveries)

20,674

4,057

630

(1,059

)

7,131

Nonperforming loans

82,809

127,878

105,807

109,882

42,687

Classified assets

410,485

352,792

281,162

264,460

193,838

Nonperforming loans to total loans

0.70

1.10

0.93

0.97

0.38

Nonperforming assets to total assets

0.95

0.83

0.71

0.72

0.30

Allowance for credit losses to total loans

1.19

1.29

1.27

1.23

Allowance for credit losses to loans, excluding guaranteed loans 1

1.29

1.40

1.38

1.34

Allowance for credit losses to nonperforming loans

169.1

116.4

137.2

130.1

323.2

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

0.70

0.14

0.02

(0.04

0.26

WEALTH MANAGEMENT

Trust assets under management

2,750,803

2,566,784

2,457,471

2,250,004

2,412,471

SHARE DATA

Book value per common share

53.22

51.62

50.09

48.64

47.37

Tangible book value per common share 1

41.37

41.58

40.02

38.54

37.27

Market value per share

54.00

57.98

55.10

53.74

56.40

Period end common shares outstanding

36,965

37,011

36,950

36,928

36,988

Average basic common shares

36,997

37,015

36,963

36,971

37,118

Average diluted common shares

37,265

37,333

37,172

37,287

37,447

CAPITAL

Total risk-based capital to risk-weighted assets 2

13.9

14.4

14.7

14.6

Tier 1 capital to risk-weighted assets 2

12.8

13.3

13.2

13.1

Common equity tier 1 capital to risk-weighted assets 2

11.6

12.0

11.9

11.8

Tangible common equity to tangible assets 1

9.07

9.60

9.42

9.30

9.05

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

2Capital 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

Year ended

($ in thousands)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

CORE EFFICIENCY RATIO

Net interest income (GAAP)

168,174

158,286

152,762

147,516

146,370

626,738

568,096

Tax equivalent adjustment

3,477

3,045

2,738

2,475

2,272

11,735

8,445

Noninterest income (GAAP)

25,412

48,624

20,604

18,483

20,631

113,123

69,703

Less insurance recoveries 1

—

32,112

—

32,112

—

Less net gain (loss) on sale of investment securities

(57

)

—

106

—

Less net gain (loss) on OREO

6,169

(68

)

6,255

3,089

Core revenue (non-GAAP)

190,951

177,836

176,048

168,345

169,341

713,180

643,155

Noninterest expense (GAAP)

114,532

109,790

105,702

99,783

99,522

429,807

385,047

Less FDIC special assessment

(652

)

—

(652

)

625

Less core conversion expense

—

1,893

—

4,868

Less amortization on intangibles

1,380

736

753

855

916

3,724

3,834

Less acquisition costs

2,548

609

518

—

3,675

—

Core noninterest expense (non-GAAP)

111,256

108,445

104,431

98,928

96,713

423,060

375,720

Core efficiency ratio (non-GAAP)

58.3

61.0

59.3

58.8

57.1

59.3

58.4

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)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

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

Stockholders’ equity (GAAP)

2,039,386

1,982,332

1,922,899

1,868,073

1,824,002

Less preferred stock

71,988

Less goodwill

416,968

365,164

Less intangible assets

21,175

6,140

6,876

7,628

8,484

Tangible common equity (non-GAAP)

1,529,255

1,539,040

1,478,871

1,423,293

1,378,366

Less net unrealized losses on HTM securities, after tax

26,431

37,341

56,508

55,819

52,881

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

1,502,824

1,501,699

1,422,363

1,367,474

1,325,485

Common shares outstanding

36,965

37,011

36,950

36,928

36,988

Tangible book value per common share (non-GAAP)

41.37

41.58

40.02

38.54

37.27

Total assets (GAAP)

17,300,884

16,402,405

16,076,299

15,676,594

15,596,431

Less goodwill

416,968

365,164

Less intangible assets

21,175

6,140

6,876

7,628

8,484

Tangible assets (non-GAAP)

16,862,741

16,031,101

15,704,259

15,303,802

15,222,783

Tangible common equity to tangible assets (non-GAAP)

9.07

9.60

9.42

9.30

9.05

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

8.91

9.37

9.06

8.94

8.71

Quarter ended

Year ended

($ in thousands)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

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

Average stockholder’s equity (GAAP)

2,022,472

1,964,126

1,906,089

1,863,272

1,844,509

1,939,494

1,784,175

Less average preferred stock

71,988

Less average goodwill

414,858

365,164

377,690

365,164

Less average intangible assets

11,173

6,498

7,237

8,026

8,930

8,238

10,329

Average tangible common equity (non-GAAP)

1,524,453

1,520,476

1,461,700

1,418,094

1,398,427

1,481,578

1,336,694

Net income (GAAP)

54,794

45,235

51,384

49,961

48,834

201,374

185,266

FDIC special assessment (after tax)

(488

)

—

(488

)

470

Core conversion expense (after tax)

—

1,424

—

3,661

Acquisition costs (after tax)

1,742

549

462

—

2,753

—

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

(43

)

—

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

4,621

(51

)

4,685

2,323

Net income adjusted (non-GAAP)

51,470

45,779

51,804

49,864

50,309

198,917

187,074

Less preferred stock dividends

937

938

937

938

937

3,750

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

50,533

44,841

50,867

48,926

49,372

195,167

183,324

Return on average common equity

10.95

9.29

11.03

11.10

10.75

10.58

10.60

Adjusted return on average common equity (non-GAAP)

10.28

9.40

11.12

11.08

10.45

10.71

ROATCE (non-GAAP)

14.02

11.56

13.84

14.02

13.63

13.34

13.58

Adjusted ROATCE (non-GAAP)

13.15

11.70

13.96

13.99

14.05

13.17

13.71

Average assets

17,099,429

16,178,088

15,859,721

15,642,999

15,309,577

16,199,003

14,841,690

Return on average assets (GAAP)

1.27

1.11

1.30

1.27

1.24

1.25

Adjusted return on average assets (non-GAAP)

1.19

1.12

1.31

1.29

1.31

1.23

1.26

Average diluted common shares

37,265

37,333

37,172

37,287

37,447

37,239

37,567

Diluted earnings per share (GAAP)

1.45

1.19

1.36

1.31

1.28

5.31

4.83

Adjusted diluted earnings per share (non-GAAP)

1.36

1.20

1.37

1.31

1.32

5.24

4.88

Quarter ended

Year ended

($ in thousands)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

Dec 31,

2024

CALCULATION OF PRE-PROVISION NET REVENUE (PPNR)

Net interest income (GAAP)

168,174

158,286

152,762

147,516

146,370

626,738

568,096

Noninterest income (GAAP)

25,412

48,624

20,604

18,483

20,631

113,123

69,703

FDIC special assessment

(652

)

—

(652

)

625

Core conversion expense

—

1,893

—

4,868

Acquisition costs

2,548

609

518

—

3,675

—

Less net gain (loss) on sale of investment securities

(57

)

—

106

—

Less net gain (loss) on OREO

6,169

(68

)

6,255

3,089

Less insurance recoveries

—

32,112

—

32,112

—

Less noninterest expense (GAAP)

114,532

109,790

105,702

99,783

99,522

429,807

385,047

PPNR (non-GAAP)

74,838

65,610

68,126

66,087

69,440

274,661

255,156

($ in thousands)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

ALLOWANCE TO LOANS RATIO EXCLUDING GUARANTEED LOANS

Loans

11,800,338

11,583,109

11,408,840

11,298,763

11,220,355

Less guaranteed loans

960,132

922,168

913,118

942,651

947,665

Adjusted loans (non-GAAP)

10,840,206

10,660,941

10,495,722

10,356,112

10,272,690

Allowance for credit losses

140,022

148,854

145,133

142,944

137,950

Allowance for credit losses/loans (GAAP)

1.19

1.29

1.27

1.23

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

1.29

1.40

1.38

1.34

Quarter ended

Year ended

($ in thousands)

Dec 31,

2025

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Dec 31,

2025

ADJUSTED EFFECTIVE TAX RATE

Income before income tax expense (GAAP)

69,818

88,673

64,194

61,032

60,645

283,717

Less insurance recoveries 1

—

32,112

—

32,112

Adjusted income before income tax expense (non-GAAP)

69,818

56,561

64,194

61,032

60,645

251,605

Income tax expense (GAAP)

15,024

43,438

12,810

11,071

11,811

82,343

Less tax credit recapture and tax applied to insurance recoveries 1

—

32,112

—

32,112

Adjusted income tax expense (non-GAAP)

15,024

11,326

12,810

11,071

11,811

50,231

Effective tax rate (GAAP)

21.5

49.0

20.0

18.1

19.5

29.0

Adjusted effective tax rate (non-GAAP)

21.5

20.0

18.1

19.5

20.0

1Represents $32.1 million of anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event included in noninterest income, and $24.1 million of tax liability related to the anticipated recapture plus approximately $8.0 million of estimated tax liability related to the anticipated proceeds from the pending insurance claim included in income tax expense.