Enterprise Financial Services (EFSC) investor relations material

Executive summary

• Net income for Q2 2026 was $40.9 million, or $1.09 per diluted share, down from $1.30 in Q1 and $1.36 in Q2 2025.

• Core operating performance remained stable, but results were impacted by higher-than-expected provision expense and two significant commercial charge-offs.

• Net interest income rose to $168.7 million, up $2.6 million sequentially; net interest margin expanded to 4.30%.

• Loans grew by $199.6 million to $11.9 billion, while deposits were $14.5 billion, down $21.8 million sequentially but up $1.2 billion year-over-year.

• Strategic initiatives included restructuring the investment portfolio and issuing $175 million in subordinated notes to strengthen capital.

Financial highlights

• Pre-provision net revenue (PPNR) was $68.2 million, down $2.2 million sequentially.

• Adjusted EPS was $1.13, down from $1.31 in the prior quarter.

• Noninterest income fell to $13.5 million, down $5.6 million sequentially, mainly due to investment portfolio restructuring losses and lower tax credit income.

• Noninterest expense was stable at $116 million; core efficiency ratio was 61.1%.

• Tangible book value per share increased to $42.30, up 6% year-over-year and 9% annualized.

Outlook and guidance

• Management is focused on improving asset quality, disciplined loan and deposit growth, leveraging technology for efficiency, and disciplined pricing.

• Expect charge-offs to normalize to historical levels (15 basis points) in the second half of the year.

• Loan growth guidance remains mid-single digits, with momentum across all markets and specialty lending.

• Net interest margin expected to remain in the mid to upper 4.20s, with modest pressure from funding costs.

• Fee income expected to rebound, with tax credit line breaking even for the year and SBA loan sales resuming.