Enterprise Financial Services (EFSC) Q4 2025 earnings summary

Executive summary

• Q4 2025 net income was $54.8 million ($1.45 per share), up from $1.19 in Q3 and $1.28 in Q4 2024; full-year net income reached $201.4 million ($5.31 per share), up from $4.83 in 2024.

• Net interest income for Q4 was $168.2 million, up $9.9 million from Q3; annual net interest income was $626.7 million, up $58.6 million year-over-year.

• Tangible book value per share grew 11% year-over-year to $41.37; return on tangible common equity reached 14.02% in Q4.

• Completed acquisition of 12 branches in Arizona and Kansas in October 2025, accelerating market expansion and contributing to loan and deposit growth.

• Repurchased 67,000 shares in Q4 and 258,739 shares for the year; increased quarterly dividend to $0.33 per share for Q1 2026 and annual dividend to $1.22.

Financial highlights

• Net interest margin for Q4 was 4.26%, up 3 basis points from Q3 and 13 basis points from Q4 2024; annual NIM was 4.21%.

• Total loans at year-end were $11.8 billion, up $217.2 million from Q3 and $580 million year-over-year; organic loan growth (excluding acquisitions) was $288 million.

• Total deposits at year-end were $14.6 billion, up $1.0 billion from Q3 and $1.5 billion year-over-year; organic deposit growth was $853.4 million.

• Noninterest income for Q4 was $25.4 million, up $9 million excluding prior quarter tax credit recapture, mainly from OREO gains and tax credit income.

• Noninterest expense for Q4 was $114.5 million, up $4.7 million from Q3, including $2.5 million in one-time acquisition costs and $4.2 million in incremental branch expenses.

Outlook and guidance

• Expecting 6%-8% balance sheet growth in 2026, with mid-single-digit loan growth and deposit growth outpacing loans.

• Net interest margin projected to stabilize around 4.20% in 2026, with limited impact from anticipated Fed rate cuts.

• Fee income and expenses both expected to grow around 5% year-over-year, with SBA gain on sale revenue to grow modestly.

• Tax credit income expected to remain flat at $7–7.5 million in 2026.

• Management expects continued improvement in asset quality and operational success in 2026, supported by investments in associates, technology, and a strong balance sheet.