Enterprise Financial Q2 profit falls on lower noninterest income

Enterprise Financial Services

22/07/2026 21:25

    

    Overview
  
U.S. regional bank's Q2 net income and adjusted EPS declined year-over-year
Net interest income and margin rose, aided by higher loan and securities yields
Company repurchased 382,083 shares and raised quarterly dividend by $0.01

    

    Outlook
  
Enterprise Financial Services says it is committed to improving asset quality in H2 2026
Company aims for disciplined loan and deposit growth in the second half of 2026
Enterprise Financial Services plans to leverage technology to boost operational efficiency

    

    Result Drivers
  
HIGHER YIELDS - Net interest income increased due to higher loan and securities yields and higher average balances
PORTFOLIO RESTRUCTURING - Sale of lower-yielding securities and reinvestment into higher-yielding securities improved revenue profile but led to a net loss on sales
CREDIT COSTS - Higher provision expense and charge-offs driven by late-quarter challenges with two commercial credits
NONINTEREST INCOME DECLINE - Lower noninterest income due to net loss on securities sales and decreased tax credit income

    
Company press release: ID:nBw8wfqrKa

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Net Income
 
$40.9 mln
 
Q2 Net Interest Income
 
$168.7 mln
 
Q2 Net Interest Margin
 
4.3%
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Enterprise Financial Services Corp is $67.00, about 0.4% above its July 21 closing price of $66.76
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

    

    Reuters Recommended Reads
  
July 21 - Metropolitan Bank Q2 EPS falls on credit loss provision and one-time expenses
July 21 - Hancock Whitney Q2 profit rises as net interest income grows
July 21 - Bank OZK's Q2 net income falls 8.7% yr/yr

    
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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.)