Enterprise Financial Q3 profit falls as higher credit provisions offset loan growth
EFSC•Enterprise Financial's third-quarter net income fell year over year to $42.40 million as higher credit provisions offset loan growth. Net interest income rose to $174.60 million, and net interest margin was 4.30%.
1. Third-quarter results
Enterprise Financial Services Corp reported third-quarter net income of $42.40 million, down year over year but up from the prior quarter. Adjusted diluted earnings per share declined slightly from a year earlier.
2. Interest income grows
Net interest income increased year over year and sequentially to $174.60 million, while net interest margin was 4.30%. The company attributed the increase to organic loan growth, an additional day in the quarter, higher average loan and investment balances, and lower rates paid on interest-bearing liabilities.
3. Other income pressure
Lower tax credit income and net losses on other real estate owned weighed on noninterest income. The company provided no specific guidance or outlook commentary for future periods in its press release.
