Enterprise Financial Q3 profit falls as higher credit provisions offset loan growth

Enterprise Financial Services

Wed 21:17

Overview
U.S. regional bank's Q3 net income fell yr/yr but rose from prior quarter
Adjusted diluted EPS for Q3 declined slightly from prior year
Net interest income grew sequentially and yr/yr, supported by loan growth and lower funding rates

Outlook
Company did not provide specific guidance or outlook commentary for future periods in its press release

Result Drivers
LOAN GROWTH - Co said higher net interest income was driven by organic loan growth and an additional day in the period
HIGHER BALANCES, LOWER FUNDING COSTS - Co attributed yr/yr net interest income growth to higher average loan and investment balances and lower rates paid on interest-bearing liabilities
NONINTEREST INCOME PRESSURE - Co said lower tax credit income and net losses on OREO weighed on noninterest income

Company press release: ID:nBwbwz1yya

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
 
$42.40 mln
 
Q3 Net Interest Income
 
$174.60 mln
 
Q3 Net Interest Margin
 
4.30%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "hold."
Wall Street's median 12-month price target for Enterprise Financial Services Corp is $70.00, about 15.6% above its October 20 closing price of $60.55
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Oct 19 - SmartFinancial Q3 net income rises, driven by organic loan growth
Oct 19 - Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin
Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)