EXHIBIT 99.1
ENTERPRISE FINANCIAL SERVICES CORP REPORTS SECOND QUARTER 2026 RESULTS
Second Quarter Results
- Net income of $40.9 million, or $1.09 per diluted common share, compared to $1.30 for the linked quarter and $1.36 for the prior year quarter
- Net interest margin (“NIM”) of 4.30%, quarterly increase of two basis points
- Net interest income of $168.7 million, quarterly increase of $2.6 million
- Total loans of $11.9 billion, quarterly increase of $199.6 million
- Total deposits of $14.5 billion, quarterly decrease of $21.8 million
- Return on average assets (“ROAA”) of 0.95%, compared to 1.16% for the linked quarter and 1.30% for the prior year quarter
- Return on average tangible common equity (“ROATCE”)¹ of 10.39%, compared to 12.53% for the linked quarter and 13.84% for the prior year quarter
- Tangible common equity to tangible assets¹ of 9.04%, compared to 9.01% in the linked quarter and 9.42% in the prior year quarter
- Tangible book value per common share¹ of $42.30, compared to $41.38 for the linked quarter and an increase of 6% from the prior year quarter
- Issued $175 million of 6.25% fixed-to-floating rate subordinated notes due in 2036. The notes are callable beginning in 2031 and are included in tier 2 capital
- Returned $22.9 million to stockholders through the repurchase of 382,083 shares and $12.3 million through common stock dividends
- Increased quarterly dividend $0.01 to $0.35 per common share for the third quarter 2026
St. Louis, MO. July 22, 2026 – Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”) today announced financial results for the second quarter of 2026. “Our strategic initiatives this quarter focused on driving sustainable profitability and capital efficiency. Through a targeted restructuring of our investment portfolio, we successfully enhanced our revenue profile and expanded margin. Simultaneously, we bolstered our regulatory capital base through the issuance of $175 million of subordinated debentures. While late-quarter challenges with two commercial credits led to higher charge-offs and provision expense, our core portfolio trends are relatively stable and our underwriting standards remain high,” said Jim Lally, President and Chief Executive Officer. “Looking toward the second half of 2026, we are committed to improving asset quality, securing disciplined loan and deposit growth and leveraging technology to boost operational efficiency.”
Comparisons to the prior year quarter are affected by the acquisition of 12 branches in Arizona and Kansas in the fourth quarter 2025 (the “Branch Acquisition”).
Highlights
- Earnings - Net income in the second quarter 2026 was $40.9 million, a decrease of $8.4 million and $10.5 million compared to the linked and prior year quarters, respectively. Earnings per diluted common share for the second quarter 2026 was $1.09, compared to $1.30 and $1.36 for the linked and prior year
¹ ROATCE, tangible common equity to tangible assets, and tangible book value per common share are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.
quarters, respectively. Adjusted diluted earnings per share² was $1.13 in the second quarter 2026, compared to $1.31 and $1.37 in the linked and prior year quarters, respectively.
- Pre-provision net revenue (“PPNR”)² - PPNR of $68.2 million in the second quarter 2026 decreased $2.2 million from the linked quarter and increased $0.1 million from the prior year quarter. The decrease from the linked quarter was primarily due to a decrease in noninterest income.
- Net interest income and NIM - Net interest income of $168.7 million for the second quarter 2026 increased $2.6 million and $16.0 million from the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income benefitted from higher loan and securities yields, as well as an additional day during the period. Compared to the prior year quarter, net interest income increased primarily due to higher average loan and investment balances, higher investment yields, and a decrease on rates paid on interest-bearing liabilities. NIM was 4.30% for the second quarter 2026, compared to 4.28% and 4.21% for the linked and prior year quarters, respectively. The total cost of deposits of 1.53% for the second quarter 2026 increased one basis point and decreased 29 basis points from the linked and prior year quarters, respectively.
- Noninterest income - Noninterest income of $13.5 million for the second quarter 2026 decreased $5.6 million and $7.1 million from the linked and prior year quarters, respectively. The decrease in noninterest income from the linked and prior year quarters was primarily due to a net loss on sales of investment securities and a decrease in tax credit income. During the quarter, the Company executed balance sheet transactions to optimize future earnings. This included the sale of approximately $179 million of securities with a tax-equivalent yield of 3.13% and the reinvestment of the proceeds into new securities with a tax-equivalent yield of 5.20%. The Company also sold Visa Class B-1 common stock along with a parcel of land. A net loss of $1.5 million was recognized on these transactions. Tax credit income declined due to an increase in interest rates that negatively impacted the value of projects carried at fair value.
- Noninterest expense - Noninterest expense of $115.7 million for the second quarter 2026 increased $0.6 million and $10.0 million from the linked and prior year quarters, respectively. The increase from the prior year quarter was primarily driven by higher employee compensation cost, variable deposit costs and loan and legal expenses related to loan workouts and other real estate owned (“OREO”).
- Loans - Loans totaled $11.9 billion at June 30, 2026, an increase of $199.6 million and $483.6 million from the linked and prior year quarters, respectively. Average loans totaled $11.8 billion for the current and linked quarters, respectively, and $11.4 billion for the prior year quarter.
- Asset quality - The allowance for credit losses to total loans was 1.17% at June 30, 2026, compared to 1.21% at March 31, 2026 and 1.27% at June 30, 2025. The provision for credit losses in the second quarter 2026 was $14.2 million, compared to $7.2 million and $3.5 million for the linked and prior year quarters, respectively. The ratio of nonperforming assets to total assets was 0.92% at June 30, 2026, compared to 0.87% and 0.71% at March 31, 2026 and June 30, 2025, respectively.
- Deposits - Deposits totaled $14.5 billion at June 30, 2026, a decrease of $21.8 million and an increase of $1.2 billion from the linked and prior year quarters, respectively. Average deposits were $14.6 billion for the current and linked quarters, respectively, and $13.2 billion for the prior year quarter. At June 30, 2026, noninterest-bearing deposit accounts totaled $4.9 billion, or 34% of total deposits, and the loan to deposit ratio was 82%.
² Adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables.
- Subordinated notes - In the second quarter 2026, the Company issued $175.0 million of 6.25% fixed-to-floating rate subordinated notes due in 2036 for general corporate purposes and to bolster capital. The notes are callable starting in July 2031 and are included in tier 2 capital.
- Capital - Total stockholders’ equity was $2.0 billion and the tangible common equity to tangible assets ratio³ was 9.04% at June 30, 2026, compared to 9.01% at March 31, 2026. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 12.1% and a total risk-based capital ratio of 13.1% at June 30, 2026. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.5% and 15.0%, respectively, at June 30, 2026.
The Company’s Board of Directors (the “Board”) approved a quarterly dividend of $0.35 per common share, payable on September 30, 2026 to stockholders of record as of September 15, 2026. The Board also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) June 15, 2026 to (but excluding) September 15, 2026. The dividend will be payable on September 15, 2026 to stockholders of record of Series A Preferred Stock as of August 31, 2026.
³ Tangible common equity to tangible assets ratio is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables.
Net Interest Income and NIM
Average Balance Sheets
The following table presents, for the periods indicated, certain information related to the average interest-earning assets and interest-bearing liabilities, as well as the corresponding average interest rates earned and paid, all on a tax-equivalent basis.
| ($ in thousands) | Quarter ended · June 30, 2026Average Balance | Quarter ended · June 30, 2026Interest Income/ Expense | Quarter ended · June 30, 2026Average Yield/ Rate | Quarter ended · March 31, 2026Average Balance | Quarter ended · March 31, 2026Interest Income/ Expense | Quarter ended · March 31, 2026Average Yield/ Rate | Quarter ended · June 30, 2025Average Balance | Quarter ended · June 30, 2025Interest Income/ Expense | Quarter ended · June 30, 2025Average Yield/ Rate |
|---|---|---|---|---|---|---|---|---|---|
| Assets | |||||||||
| Interest-earning assets: | |||||||||
| Loans1, 2 | $11,775,879 | $188,819 | 6.43% | $11,777,727 | $185,380 | 6.38% | $11,358,209 | $188,007 | 6.64% |
| Taxable securities | 2,539,301 | 27,898 | 4.41 | 2,481,169 | 26,108 | 4.27 | 1,971,025 | 19,940 | 4.06 |
| Non-taxable securities² | 1,294,693 | 12,317 | 3.82 | 1,301,675 | 12,390 | 3.86 | 1,177,985 | 10,390 | 3.54 |
| Total securities | 3,833,994 | 40,215 | 4.21 | 3,782,844 | 38,498 | 4.13 | 3,149,010 | 30,330 | 3.86 |
| Interest-earning deposits | 431,044 | 3,697 | 3.44 | 504,541 | 4,533 | 3.64 | 315,738 | 3,368 | 4.28 |
| Total interest-earning assets | 16,040,917 | 232,731 | 5.82 | 16,065,112 | 228,411 | 5.77 | 14,822,957 | 221,705 | 6.00 |
| Noninterest-earning assets | 1,266,799 | 1,245,991 | 1,036,764 | ||||||
| Total assets | $17,307,716 | $17,311,103 | $15,859,721 | ||||||
| Liabilities and Stockholders’ Equity | |||||||||
| Interest-bearing liabilities: | |||||||||
| Interest-bearing demand accounts | $3,438,895 | $15,149 | 1.77% | $3,453,650 | $14,940 | 1.75% | $3,225,611 | $17,152 | 2.13% |
| Money market accounts | 4,009,504 | 25,788 | 2.58 | 3,952,475 | 25,198 | 2.59 | 3,660,053 | 28,437 | 3.12 |
| Savings accounts | 546,880 | 164 | 0.12 | 538,597 | 152 | 0.11 | 532,754 | 183 | 0.14 |
| Certificates of deposit | 1,698,565 | 14,569 | 3.44 | 1,665,977 | 14,459 | 3.52 | 1,486,522 | 14,207 | 3.83 |
| Total interest-bearing deposits | 9,693,844 | 55,670 | 2.30 | 9,610,699 | 54,749 | 2.31 | 8,904,940 | 59,979 | 2.70 |
| Subordinated debentures and notes | 120,277 | 2,061 | 6.87 | 93,725 | 1,522 | 6.59 | 156,753 | 2,737 | 7.00 |
| FHLB advances | 88,011 | 861 | 3.92 | 5,756 | 56 | 3.95 | 156,868 | 1,801 | 4.61 |
| Securities sold under agreements to repurchase | 200,060 | 1,162 | 2.33 | 270,057 | 1,614 | 2.42 | 209,493 | 1,592 | 3.05 |
| Other borrowings | 84,609 | 843 | 4.00 | 94,910 | 1,003 | 4.29 | 36,208 | 96 | 1.06 |
| Total interest-bearing liabilities | 10,186,801 | 60,597 | 2.39 | 10,075,147 | 58,944 | 2.37 | 9,464,262 | 66,205 | 2.81 |
| Noninterest-bearing liabilities: | |||||||||
| Demand deposits | 4,914,670 | 4,998,734 | 4,340,301 | ||||||
| Other liabilities | 154,012 | 160,718 | 149,069 | ||||||
| Total liabilities | 15,255,483 | 15,234,599 | 13,953,632 | ||||||
| Stockholders' equity | 2,052,233 | 2,076,504 | 1,906,089 | ||||||
| Total liabilities and stockholders' equity | $17,307,716 | $17,311,103 | $15,859,721 | ||||||
| Total net interest income | $172,134 | $169,467 | $155,500 | ||||||
| Net interest margin | 4.30% | 4.28% | 4.21% | ||||||
| ¹ Average balances include nonaccrual loans. Interest income includes net loan fees of $1.5 million, $1.4 million, and $1.8 million for each of the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. | |||||||||
| ² Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $3.4 million, $3.3 million, and $2.7 million for each of the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. |
Net interest income of $168.7 million for the second quarter 2026 increased $2.6 million and $16.0 million from the linked and prior year quarters, respectively. Net interest income on a tax-equivalent basis was $172.1 million, $169.5 million and $155.5 million for the current, linked and prior year quarters, respectively. The increase from the linked quarter reflects higher loan and securities yields, and the current quarter benefitted by one additional day compared to the linked quarter. These increases were partially offset by an increase in the average balance of interest-bearing liabilities. Compared to the prior year quarter, the increase in net interest income was primarily due to growth in the average balance of interest-earning assets and lower rates paid on interest-bearing liabilities, specifically securities under agreements to repurchase and money market accounts.
During the current quarter, the Company issued $175.0 million aggregate principal amount of 6.25% fixed-to-floating rate subordinated notes with a maturity date of July 1, 2036, which initially bear an annual interest rate of 6.25%, with interest payable semiannually. Beginning July 1, 2031, the interest rate resets quarterly to the three-month term SOFR rate plus a spread of 232.0 basis points, payable quarterly. The Company also sold approximately $179 million of investment securities with a tax-equivalent yield of 3.13% and reinvested the proceeds into new securities with a tax-equivalent yield of 5.20%. This transaction improved the overall tax-equivalent yield on securities by 10 basis points and will increase net interest income by $3.5 million annually.
Interest income for the second quarter 2026 increased $4.2 million and $10.3 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to a five and eight basis point increase in loans and securities yields, respectively, as well as a $51.2 million increase in average investment securities balances and one additional day during the period. Compared to the prior year quarter, the increase in interest income was primarily due to an increase of $417.7 million and $685.0 million in average loan and investment securities balances, respectively. The average interest rate of new loan originations in the second quarter 2026 was 6.58%, and investment purchases in the second quarter 2026 had a weighted average, tax-equivalent yield of 5.03%.
Interest expense in the second quarter 2026 increased $1.7 million and decreased $5.6 million from the linked and prior year quarters, respectively. Compared to the linked quarter, the increase was primarily due to higher average subordinated debt and other borrowed funds balances. Compared to the prior year quarter, the decrease was primarily due to decreased interest paid on interest-bearing liabilities. The rate paid on interest-bearing liabilities was 2.39% during the second quarter 2026, compared to 2.81% in the prior year quarter.
NIM, on a tax-equivalent basis, was 4.30% in the second quarter 2026, an increase of two basis points and nine basis points from the linked and prior year quarters, respectively. For the month of June 2026, the loan portfolio yield was 6.50% and the cost of total deposits was 1.52%.
Investments
| ($ in thousands) | At · June 30, 2026Carrying Value | At · June 30, 2026Net Unrealized Loss | At · March 31, 2026Carrying Value | At · March 31, 2026Net Unrealized Loss | At · June 30, 2025Carrying Value | At · June 30, 2025Net Unrealized Loss |
|---|---|---|---|---|---|---|
| Available-for-sale (AFS) | $2,795,725 | $(101,080) | $2,773,667 | $(116,745) | $2,204,511 | $(131,094) |
| Held-to-maturity (HTM) | 1,036,477 | (38,163) | 1,055,495 | (52,176) | 1,091,238 | (75,144) |
| Total | $3,832,202 | $(139,243) | $3,829,162 | $(168,921) | $3,295,749 | $(206,238) |
Investment securities totaled $3.8 billion at June 30, 2026, an increase of $3.0 million from the linked quarter. The tangible common equity to tangible assets ratio adjusted for unrealized losses on HTM securities⁴ was 8.87% at June 30, 2026, compared to 8.78% at March 31, 2026.
⁴ The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables.
Loans
The following table presents total loans for the most recent five quarters:
| ($ in thousands) | AtJune 30, 2026 | AtMarch 31, 2026 | AtDecember 31, 2025 | AtSeptember 30, 2025 | AtJune 30, 2025 |
|---|---|---|---|---|---|
| C&I | $2,628,065 | $2,655,273 | $2,606,472 | $2,320,868 | $2,316,609 |
| CRE investor owned | 2,902,890 | 2,763,227 | 2,786,139 | 2,626,657 | 2,547,859 |
| CRE owner occupied | 1,421,859 | 1,452,350 | 1,404,704 | 1,296,902 | 1,281,572 |
| SBA loans* | 1,237,294 | 1,230,455 | 1,262,456 | 1,257,817 | 1,249,225 |
| Sponsor finance* | 708,449 | 661,946 | 694,905 | 774,142 | 771,280 |
| Life insurance premium financing* | 1,250,250 | 1,208,098 | 1,187,128 | 1,151,700 | 1,155,623 |
| Tax credits* | 725,452 | 702,080 | 802,818 | 780,767 | 708,401 |
| Residential real estate | 356,342 | 340,966 | 362,278 | 359,315 | 356,722 |
| Construction and land development | 608,923 | 621,988 | 633,803 | 784,218 | 773,122 |
| Consumer** | 52,875 | 56,397 | 59,635 | 230,723 | 248,427 |
| Total loans | $11,892,399 | $11,692,780 | $11,800,338 | $11,583,109 | $11,408,840 |
| Quarterly loan yield | 6.43% | 6.38% | 6.51% | 6.64% | 6.64% |
| Loans by rate type (to total loans): | |||||
| Fixed | 37% | 37% | 40% | 41% | 40% |
| Variable: | 63% | 63% | 60% | 59% | 60% |
| SOFR | 32% | 32% | 30% | 29% | 29% |
| Prime | 24% | 24% | 23% | 23% | 24% |
| Other | 7% | 7% | 7% | 7% | 7% |
| Variable rate loans to total loans, adjusted for interest rate hedges | 58% | 59% | 56% | 55% | 56% |
| *Specialty loan category | |||||
| **Certain loans were reclassified from Consumer and into other categories in the fourth quarter of 2025. Prior period amounts were not adjusted. |
Loans totaled $11.9 billion at June 30, 2026, an increase of $199.6 million compared to the linked quarter. The increase was primarily driven by the $118.9 million increase in specialty lending categories and $109.2 million increase in commercial real estate loans. Loan production outpaced repayment activity in the quarter with loan volume of $1.0 billion compared to repayment activity of $814.2 million. Loan volume was strongest in the C&I and CRE portfolios in the current quarter. Average line utilization was approximately 47% for the current quarter, compared to 45% and 46% for the linked and prior year quarters, respectively.
Asset Quality
The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:
| ($ in thousands) | AtJune 30, 2026 | AtMarch 31, 2026 | AtDecember 31, 2025 | AtSeptember 30, 2025 | AtJune 30, 2025 |
|---|---|---|---|---|---|
| Nonperforming loans* | $76,144 | $64,941 | $82,809 | $127,878 | $105,807 |
| Other¹ | 84,259 | 84,482 | 81,544 | 7,821 | 8,221 |
| Nonperforming assets* | $160,403 | $149,423 | $164,353 | $135,699 | $114,028 |
| Nonperforming loans to total loans | 0.64% | 0.56% | 0.70% | 1.10% | 0.93% |
| Nonperforming assets to total assets | 0.92% | 0.87% | 0.95% | 0.83% | 0.71% |
| Allowance for credit losses | $139,238 | $142,064 | $140,022 | $148,854 | $145,133 |
| Allowance for credit losses to total loans | 1.17% | 1.21% | 1.19% | 1.29% | 1.27% |
| Allowance for credit losses to nonperforming loans* | 182.9% | 218.8% | 169.1% | 116.4% | 137.2% |
| Quarterly net charge-offs | $13,555 | $4,407 | $20,674 | $4,057 | $630 |
| *Guaranteed balances excluded | $40,698 | $28,243 | $28,903 | $33,475 | $26,536 |
| ¹ OREO and repossessed assets transferred at fair value, and carried at the lesser of cost or market value. |
The following table presents a summary of nonperforming assets by loan category as of June 30, 2026:
| ($ in thousands) | Nonperforming Loans | Government Guaranteed | Nonperforming Loans, net | ACL Reserve Allocation |
|---|---|---|---|---|
| C&I | $21,619 | $(1,538) | $20,081 | $(11,785) |
| CRE investor owned | 50,872 | (8,771) | 42,101 | (91) |
| CRE owner occupied | 37,567 | (28,391) | 9,176 | (395) |
| SBA (included in CRE owner occupied) | 35,956 | (28,391) | 7,565 | (376) |
| Other | 6,784 | (1,998) | 4,786 | (287) |
| Total | $116,842 | $(40,698) | $76,144 | $(12,558) |
| Other¹ | 84,259 | |||
| Nonperforming assets | $160,403 | |||
| ¹ OREO and repossessed assets transferred at fair value, and carried at the lesser of cost or market value. |
Nonperforming assets increased $11.0 million and $46.4 million from the linked and prior year quarters, respectively. The increase in nonperforming assets compared to the linked quarter is primarily due to a $16.0 million CRE relationship and a $5.8 million C&I relationship that went on nonaccrual, partially offset by a $4.2 million C&I relationship that became current during the period.
The provision for credit losses totaled $14.2 million in the second quarter 2026, compared to $7.2 million and $3.5 million in the linked and prior year quarters, respectively. The second quarter 2026 provision for credit losses was driven mainly by $13.6 million in net charge-offs. Most of these losses came from two accounts: an $8.3 million C&I relationship in Texas and a $5.2 million Sponsor Finance relationship. Annualized net charge-offs totaled 46 basis points of average loans in the current quarter, compared to 15 basis points in the linked quarter and two basis points of average loans in the prior year quarter.
Deposits
The following table presents deposits broken out by type for the most recent five quarters:
| ($ in thousands) | AtJune 30, 2026 | AtMarch 31, 2026 | AtDecember 31, 2025 | AtSeptember 30, 2025 | AtJune 30, 2025 |
|---|---|---|---|---|---|
| Noninterest-bearing demand accounts | $4,910,235 | $4,828,375 | $4,874,115 | $4,386,513 | $4,322,332 |
| Interest-bearing demand accounts | 3,406,505 | 3,395,680 | 3,537,334 | 3,301,621 | 3,184,670 |
| Money market and savings accounts | 4,482,011 | 4,610,662 | 4,528,510 | 4,228,605 | 4,209,032 |
| Brokered certificates of deposit | 736,377 | 724,788 | 721,977 | 762,499 | 752,422 |
| Other certificates of deposit | 967,423 | 964,892 | 947,406 | 888,674 | 848,903 |
| Total deposit portfolio | $14,502,551 | $14,524,397 | $14,609,342 | $13,567,912 | $13,317,359 |
| Noninterest-bearing deposits to total deposits | 33.9% | 33.2% | 33.4% | 32.3% | 32.5% |
| Quarterly cost of deposits | 1.53% | 1.52% | 1.64% | 1.80% | 1.82% |
Total deposits at June 30, 2026 were $14.5 billion, a decrease of $21.8 million and an increase of $1.2 billion from the linked and prior year quarters, respectively. Average deposits for the three months ended June 30, 2026 and March 31, 2026 were $14.6 billion, compared to $13.2 billion for the three months ended June 30, 2025. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.2 billion and $1.3 billion at June 30, 2026 and March 31, 2026, respectively.
Noninterest Income
The following table presents a comparative summary of the major components of noninterest income for the periods indicated:
| ($ in thousands) | Linked quarter comparison · Quarter endedJune 30, 2026 | Linked quarter comparison · Quarter endedMarch 31, 2026 | Linked quarter comparison · Quarter endedIncrease (decrease) | Prior year comparison · Quarter endedJune 30, 2025 | Prior year comparison · Quarter endedIncrease (decrease) |
|---|---|---|---|---|---|
| Deposit service charges | $5,477 | $5,256 | $4% | $4,940 | $11% |
| Wealth management revenue | 2,804 | 2,712 | 3% | 2,584 | 9% |
| Card services revenue | 2,545 | 2,535 | — | 2,444 | 4% |
| Tax credit income (loss) | (1,733) | (179) | (868)% | 2,207 | (179)% |
| Other income | 4,385 | 8,764 | (50)% | 8,429 | (48)% |
| Total noninterest income | $13,478 | $19,088 | $(29)% | $20,604 | $(35)% |
Total noninterest income was $13.5 million for the second quarter 2026, a decrease of $5.6 million and $7.1 million from the linked and prior year quarters, respectively. The decrease from the linked and prior year quarters was primarily due to lower tax credit income and other income, which is discussed further below. Tax credit income is typically highest in the fourth quarter of each year and will vary in other periods based on transaction volumes and fair value changes. Changes in the interest rate environment had a negative impact on tax credit projects carried at fair value.
The following table presents a comparative summary of the major components of other income for the periods indicated:
| ($ in thousands) | Linked quarter comparison · Quarter endedJune 30, 2026 | Linked quarter comparison · Quarter endedMarch 31, 2026 | Linked quarter comparison · Quarter endedIncrease (decrease) | Prior year comparison · Quarter endedJune 30, 2025 | Prior year comparison · Quarter endedIncrease (decrease) |
|---|---|---|---|---|---|
| BOLI | $2,427 | $2,533 | $(4)% | $2,561 | $(5)% |
| Community development investments | 404 | 1,067 | (62)% | 1,426 | (72)% |
| Gain on SBA loan sales | — | 1,414 | (100)% | 1,153 | (100)% |
| Gain on sales of fixed assets | 687 | — | 100% | — | 100% |
| Net gain (loss) on OREO | (302) | (295) | 2% | 56 | (639)% |
| Net loss on sales of investment securities | (2,146) | — | (100)% | — | (100)% |
| Private equity fund distributions | 283 | 1,837 | (85)% | 502 | (44)% |
| Servicing fees | 540 | 448 | 21% | 485 | 11% |
| Swap fees | 131 | 97 | 35% | 86 | 52% |
| Miscellaneous income | 2,361 | 1,663 | 42% | 2,160 | 9% |
| Total other income | $4,385 | $8,764 | $(50)% | $8,429 | $(48)% |
The decrease in other income from the linked and prior year quarters was primarily due to a $2.1 million net loss on sales of investment securities in the current quarter and a gain on the sale of guaranteed SBA loans during the linked and prior year quarters that did not reoccur, partially offset by a $0.7 million gain on sales of fixed assets. During the period, the Company sold investment securities with a tax-equivalent yield of 3.13% and reinvested the proceeds into securities with a tax-equivalent yield of approximately 5.20%. A pre-tax loss of approximately $6 million on the sale of these securities was partially offset by a pre-tax gain of approximately $4 million from the sale of Visa Class B-1 common stock.
Noninterest Expense
The following table presents a comparative summary of the major components of noninterest expense for the periods indicated:
| ($ in thousands) | Linked quarter comparison · Quarter endedJune 30, 2026 | Linked quarter comparison · Quarter endedMarch 31, 2026 | Prior year comparisonQuarter ended | ||
|---|---|---|---|---|---|
| Employee compensation and benefits | $53,114 | $55,759 | $(5)% | $50,164 | $6% |
| Deposit costs | 27,832 | 25,996 | 7% | 24,765 | 12% |
| Occupancy | 5,909 | 5,902 | — | 5,065 | 17% |
| Acquisition costs | — | — | — | 518 | (100)% |
| Other expense | 28,884 | 27,480 | 5% | 25,190 | 15% |
| Total noninterest expense | $115,739 | $115,137 | $1% | $105,702 | $9% |
Noninterest expense increased $0.6 million and $10.0 million from the linked and prior year quarters, respectively. Deposit costs relate to certain businesses in the deposit verticals that receive an earnings credit allowance for deposit-related services provided to us. These earnings credit allowances are impacted by, among other things, interest rates and average balances. Deposit costs increased $1.8 million from the linked quarter primarily due to the expiration of certain unused allowances that reduced expense in the first quarter. Employee compensation and benefits decreased $2.6 million from the linked quarter primarily due to employer payroll taxes that are seasonally higher in the first quarter each year.
The increase in noninterest expense from the prior year quarter was primarily due to an increase in the associate base as a result of the Branch Acquisition, merit increases throughout 2025 and 2026, an increase of $3.1 million in deposit costs due to higher earnings credit allowances and deposit vertical average balances, and an increase of $0.6 million in loan and legal expenses due to loan workouts and the foreclosure of certain properties. For the second quarter 2026, the core efficiency ratio⁵ was 61.1%, compared to 60.2% for the linked quarter and 59.3% for the prior year quarter.
Income Taxes
The effective tax rate for the current quarter was 21.7%, compared to 21.5% and 20.0% in the linked and prior year quarters, respectively. The increase in the effective tax rate from the prior year quarter was due to an increase in state taxes from apportionment factors and a decrease in tax credit investments.
Capital
The following table presents total equity and various capital ratios for the most recent five quarters:
| ($ in thousands) | AtJune 30, 2026 | AtMarch 31, 2026 | AtDecember 31, 2025 | AtSeptember 30, 2025 | AtJune 30, 2025 |
|---|---|---|---|---|---|
| Stockholders’ equity | $2,040,846 | $2,022,204 | $2,039,386 | $1,982,332 | $1,922,899 |
| Total risk-based capital to risk-weighted assets | 15.0% | 13.9% | 13.9% | 14.4% | 14.7% |
| Tier 1 capital to risk weighted assets | 12.7% | 12.9% | 12.8% | 13.3% | 13.2% |
| Common equity tier 1 capital to risk-weighted assets | 11.5% | 11.7% | 11.6% | 12.0% | 11.9% |
| Leverage ratio | 10.4% | 10.4% | 10.5% | 11.1% | 11.1% |
| Tangible common equity to tangible assets⁵ | 9.04% | 9.01% | 9.07% | 9.60% | 9.42% |
*Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.
Total equity was $2.0 billion at June 30, 2026, an increase of $18.6 million and $117.9 million from the linked and prior year quarters, respectively. Tangible book value per common share⁵ was $42.30 at June 30, 2026, compared to $41.38 and $40.02 at March 31, 2026 and June 30, 2025, respectively. The Company repurchased 382,083 shares at an average price of $59.93 in the second quarter 2026, and has 249,400 shares remaining in the current plan that was previously approved in May 2022. On July 20, 2026, the Company’s Board of Directors approved adding an additional 2,000,000 shares to the Company’s stock repurchase plan.
The issuance of subordinated debt during the current quarter enhanced total risk-based capital. The Company’s regulatory capital ratios continue to exceed the “well-capitalized” regulatory benchmark. Capital ratios for the current quarter are subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review.
⁵ Core efficiency ratio, tangible common equity to tangible assets, and tangible book value per common share are non-GAAP measures. Refer to discussion and reconciliation of these measures in the accompanying financial tables.
Use of Non-GAAP Financial Measures
The Company’s accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, the Company provides other financial measures, such as tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, return on average common equity, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA, and adjusted diluted earnings per share, in this release that are considered “non-GAAP financial measures.” Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position, or cash flows that exclude (or include) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP.
The Company considers its tangible common equity, PPNR, ROATCE, adjusted ROATCE, core efficiency ratio, tangible common equity to tangible assets ratio, tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities, tangible book value per common share, return on average common equity, adjusted return on average common equity, allowance for credit losses to total loans excluding guaranteed loans, adjusted ROAA and adjusted diluted earnings per share, collectively “core performance measures,” presented in this earnings release and the included tables as important measures of financial performance, even though they are non-GAAP measures, as they provide supplemental information by which to evaluate the impact of certain non-comparable items, and the Company’s operating performance on an ongoing basis. Core performance measures exclude certain other income and expense items, such as the FDIC special assessment, acquisition costs, accrued insurance proceeds anticipated to be received as a result of recaptured tax credits, the net gain or loss on sales of fixed assets, the net gain or loss on OREO and the net gain or loss on sales of investment securities, that the Company believes to be not indicative of or useful to measure the Company’s operating performance on an ongoing basis. The attached tables contain a reconciliation of these core performance measures to the GAAP measures. The Company believes that the tangible common equity to tangible assets ratio provides useful information to investors about the Company’s capital strength even though it is considered to be a non-GAAP financial measure and is not part of the regulatory capital requirements to which the Company is subject.
The Company believes these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding the Company’s performance and capital strength. The Company’s management uses, and believes that investors benefit from referring to, these non-GAAP measures and ratios in assessing the Company’s operating results and related trends and when forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP. In the attached tables, the Company has provided a reconciliation of, where applicable, the most comparable GAAP financial measures and ratios to the non-GAAP financial measures and ratios, or a reconciliation of the non-GAAP calculation of the financial measures for the periods indicated.
Conference Call and Webcast Information
The Company will host a conference call and webcast at 10:00 a.m. Central Time on Thursday, July 23, 2026. During the call, management will review the second quarter 2026 results and related matters. This press release as well as a related slide presentation will be accessible via the “Investor Relations” page of the Company’s website, https://investor.enterprisebank.com/events-and-presentations, prior to the scheduled broadcast of the conference call. The call can be accessed via this same website page, or via telephone at 1-833-461-5787. After connecting, you may say the name of the conference or enter the Conference ID 122714948. We encourage participants to pre-register for the conference call using the following link: https://bit.ly/EFSC2Q2026EarningsCallRegistration. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. A recorded replay of the conference call will be available on the website after the call’s completion. The replay will be available for at least two weeks following the conference call.
About Enterprise Financial Services Corp
Enterprise Financial Services Corp (Nasdaq: EFSC), with approximately $17.4 billion in assets, is a financial holding company headquartered in Clayton, Missouri. Enterprise Bank & Trust, a Missouri state-chartered trust company with banking powers and a wholly-owned subsidiary of EFSC, operates branch offices in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit production offices throughout the country. Enterprise Bank & Trust offers a range of business and personal banking services and wealth management services. Enterprise Trust, a division of Enterprise Bank & Trust, provides financial planning, estate planning, investment management and trust services to businesses, individuals, institutions, retirement plans and non-profit organizations. Additional information is available at www.enterprisebank.com.
Enterprise Financial Services Corp’s common stock is traded on the Nasdaq Global Select Market under the symbol “EFSC.” Please visit our website at www.enterprisebank.com to see our regularly posted material information.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
| (in thousands, except per share data) | Quarter endedJun 30, 2026 | Quarter endedMar 31, 2026 | Quarter endedDec 31, 2025 | Quarter endedSep 30, 2025 | Quarter endedJun 30, 2025 | Six months endedJun 30, 2026 | Six months endedJun 30, 2025 |
|---|---|---|---|---|---|---|---|
| EARNINGS SUMMARY | |||||||
| Net interest income | $168,716 | $166,147 | $168,174 | $158,286 | $152,762 | $334,863 | $300,278 |
| Provision for credit losses | 14,210 | 7,243 | 9,236 | 8,447 | 3,470 | 21,453 | 8,654 |
| Noninterest income | 13,478 | 19,088 | 25,412 | 48,624 | 20,604 | 32,566 | 39,087 |
| Noninterest expense | 115,739 | 115,137 | 114,532 | 109,790 | 105,702 | 230,876 | 205,485 |
| Income before income tax expense | 52,245 | 62,855 | 69,818 | 88,673 | 64,194 | 115,100 | 125,226 |
| Income tax expense | 11,318 | 13,493 | 15,024 | 43,438 | 12,810 | 24,811 | 23,881 |
| Net income | 40,927 | 49,362 | 54,794 | 45,235 | 51,384 | 90,289 | 101,345 |
| Preferred stock dividends | 937 | 938 | 937 | 938 | 937 | 1,875 | 1,875 |
| Net income available to common stockholders | $39,990 | $48,424 | $53,857 | $44,297 | $50,447 | $88,414 | $99,470 |
| Diluted earnings per common share | $1.09 | $1.30 | $1.45 | $1.19 | $1.36 | $2.39 | $2.67 |
| Adjusted diluted earnings per common share¹ | 1.13 | 1.31 | 1.36 | 1.20 | 1.37 | 2.44 | 2.68 |
| Return on average assets | 0.95% | 1.16% | 1.27% | 1.11% | 1.30% | 1.05% | 1.30% |
| Adjusted return on average assets¹ | 0.98% | 1.16% | 1.19% | 1.12% | 1.31% | 1.07% | 1.30% |
| Return on average common equity¹ | 8.10% | 9.80% | 10.95% | 9.29% | 11.03% | 8.95% | 11.07% |
| Adjusted return on average common equity¹ | 8.37% | 9.84% | 10.28% | 9.40% | 11.12% | 9.10% | 11.10% |
| ROATCE¹ | 10.39% | 12.53% | 14.02% | 11.56% | 13.84% | 11.46% | 13.93% |
| Adjusted ROATCE¹ | 10.73% | 12.59% | 13.15% | 11.70% | 13.96% | 11.66% | 13.97% |
| Net interest margin (tax-equivalent) | 4.30% | 4.28% | 4.26% | 4.23% | 4.21% | 4.29% | 4.18% |
| Efficiency ratio | 63.5% | 62.2% | 59.2% | 53.1% | 61.0% | 62.8% | 60.5% |
| Core efficiency ratio¹ | 61.1% | 60.2% | 58.3% | 61.0% | 59.3% | 60.7% | 59.1% |
| Assets | $17,399,009 | $17,227,828 | $17,300,884 | $16,402,405 | $16,076,299 | ||
| Average assets | $17,307,716 | $17,311,103 | $17,099,429 | $16,178,088 | $15,859,721 | $17,309,400 | $15,751,959 |
| Period end common shares outstanding | 36,258 | 36,581 | 36,965 | 37,011 | 36,950 | ||
| Dividends per common share | $0.34 | $0.33 | $0.32 | $0.31 | $0.30 | $0.67 | $0.59 |
| Tangible book value per common share¹ | $42.30 | $41.38 | $41.37 | $41.58 | $40.02 | ||
| Tangible common equity to tangible assets¹ | 9.04% | 9.01% | 9.07% | 9.60% | 9.42% | ||
| Total risk-based capital to risk-weighted assets² | 15.0% | 13.9% | 13.9% | 14.4% | 14.7% | ||
| ¹ Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP. | |||||||
| ² Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review. |
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
| (in thousands, except per share data) | Quarter endedJun 30, 2026 | Quarter endedMar 31, 2026 | Quarter endedDec 31, 2025 | Quarter endedSep 30, 2025 | Quarter endedJun 30, 2025 | Six months endedJun 30, 2026 | Six months endedJun 30, 2025 |
|---|---|---|---|---|---|---|---|
| INCOME STATEMENTS | |||||||
| NET INTEREST INCOME | |||||||
| Interest income | $229,313 | $225,091 | $232,273 | $225,390 | $218,967 | $454,404 | $430,747 |
| Interest expense | 60,597 | 58,944 | 64,099 | 67,104 | 66,205 | 119,541 | 130,469 |
| Net interest income | 168,716 | 166,147 | 168,174 | 158,286 | 152,762 | 334,863 | 300,278 |
| Provision for credit losses | 14,210 | 7,243 | 9,236 | 8,447 | 3,470 | 21,453 | 8,654 |
| Net interest income after provision for credit losses | 154,506 | 158,904 | 158,938 | 149,839 | 149,292 | 313,410 | 291,624 |
| NONINTEREST INCOME | |||||||
| Deposit service charges | 5,477 | 5,256 | 5,081 | 4,935 | 4,940 | 10,733 | 9,360 |
| Wealth management revenue | 2,804 | 2,712 | 2,642 | 2,571 | 2,584 | 5,516 | 5,243 |
| Card services revenue | 2,545 | 2,535 | 2,621 | 2,535 | 2,444 | 5,080 | 4,839 |
| Tax credit income (loss) | (1,733) | (179) | 3,180 | (300) | 2,207 | (1,912) | 4,817 |
| Insurance recoveries¹ | — | — | — | 32,112 | — | — | — |
| Other income | 4,385 | 8,764 | 11,888 | 6,771 | 8,429 | 13,149 | 14,828 |
| Total noninterest income | 13,478 | 19,088 | 25,412 | 48,624 | 20,604 | 32,566 | 39,087 |
| NONINTEREST EXPENSE | |||||||
| Employee compensation and benefits | 53,114 | 55,759 | 50,149 | 49,640 | 50,164 | 108,873 | 98,372 |
| Deposit costs | 27,832 | 25,996 | 27,471 | 27,172 | 24,765 | 53,828 | 48,588 |
| Occupancy | 5,909 | 5,902 | 5,764 | 4,895 | 5,065 | 11,811 | 9,495 |
| FDIC special assessment | — | — | (652) | — | — | — | — |
| Acquisition costs | — | — | 2,548 | 609 | 518 | — | 518 |
| Other expense | 28,884 | 27,480 | 29,252 | 27,474 | 25,190 | 56,364 | 48,512 |
| Total noninterest expense | 115,739 | 115,137 | 114,532 | 109,790 | 105,702 | 230,876 | 205,485 |
| Income before income tax expense | 52,245 | 62,855 | 69,818 | 88,673 | 64,194 | 115,100 | 125,226 |
| Income tax expense | 11,318 | 13,493 | 15,024 | 11,326 | 12,810 | 24,811 | 23,881 |
| Tax credit recapture and provision for anticipated tax applied to related insurance recoveries² | — | — | — | 32,112 | — | — | — |
| Total income tax expense | 11,318 | 13,493 | 15,024 | 43,438 | 12,810 | 24,811 | 23,881 |
| Net income | $40,927 | $49,362 | $54,794 | $45,235 | $51,384 | $90,289 | $101,345 |
| Preferred stock dividends | 937 | 938 | 937 | 938 | 937 | 1,875 | 1,875 |
| Net income available to common stockholders | $39,990 | $48,424 | $53,857 | $44,297 | $50,447 | $88,414 | $99,470 |
| Basic earnings per common share | $1.10 | $1.31 | $1.46 | $1.20 | $1.36 | $2.41 | $2.69 |
| Diluted earnings per common share | $1.09 | $1.30 | $1.45 | $1.19 | $1.36 | $2.39 | $2.67 |
| ¹ Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event. | |||||||
| ² Represents recapture of $24.1 million solar tax credit and approximately $8.0 million of estimated tax liability related to anticipated proceeds from pending insurance claim related to a third quarter 2025 recapture event. |
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
| ($ in thousands) | AtJun 30, 2026 | AtMar 31, 2026 | AtDec 31, 2025 | AtSep 30, 2025 | AtJun 30, 2025 |
|---|---|---|---|---|---|
| BALANCE SHEET | |||||
| ASSETS | |||||
| Cash and due from banks | $273,875 | $258,542 | $208,080 | $208,455 | $252,817 |
| Interest-earning deposits | 278,852 | 376,824 | 474,720 | 264,399 | 239,602 |
| Debt and equity investments | 3,960,834 | 3,911,106 | 3,810,876 | 3,527,467 | 3,384,347 |
| Loans held for sale | 1,145 | 418 | 928 | 681 | 586 |
| Loans | 11,892,399 | 11,692,780 | 11,800,338 | 11,583,109 | 11,408,840 |
| Allowance for credit losses | (139,238) | (142,064) | (140,022) | (148,854) | (145,133) |
| Total loans, net | 11,753,161 | 11,550,716 | 11,660,316 | 11,434,255 | 11,263,707 |
| Fixed assets, net | 57,318 | 57,956 | 58,993 | 49,248 | 48,639 |
| Goodwill | 416,968 | 416,968 | 416,968 | 365,164 | 365,164 |
| Intangible assets, net | 18,228 | 19,525 | 21,175 | 6,140 | 6,876 |
| Other assets | 638,628 | 635,773 | 648,828 | 546,596 | 514,561 |
| Total assets | $17,399,009 | $17,227,828 | $17,300,884 | $16,402,405 | $16,076,299 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Noninterest-bearing deposits | $4,910,235 | $4,828,375 | $4,874,115 | $4,386,513 | $4,322,332 |
| Interest-bearing deposits | 9,592,316 | 9,696,022 | 9,735,227 | 9,181,399 | 8,995,027 |
| Total deposits | 14,502,551 | 14,524,397 | 14,609,342 | 13,567,912 | 13,317,359 |
| Subordinated debentures and notes | 265,910 | 93,759 | 93,688 | 93,617 | 156,796 |
| FHLB advances | 208,000 | — | — | 327,000 | 294,000 |
| Other borrowings | 208,166 | 319,345 | 387,717 | 247,006 | 210,641 |
| Other liabilities | 173,536 | 268,123 | 170,751 | 184,538 | 174,604 |
| Total liabilities | 15,358,163 | 15,205,624 | 15,261,498 | 14,420,073 | 14,153,400 |
| Stockholders’ equity: | |||||
| Preferred stock | 71,988 | 71,988 | 71,988 | 71,988 | 71,988 |
| Common stock | 363 | 366 | 370 | 370 | 369 |
| Additional paid-in capital | 986,133 | 990,394 | 1,000,775 | 997,446 | 991,663 |
| Retained earnings | 1,056,072 | 1,041,038 | 1,020,840 | 980,548 | 947,864 |
| Accumulated other comprehensive loss | (73,710) | (81,582) | (54,587) | (68,020) | (88,985) |
| Total stockholders’ equity | 2,040,846 | 2,022,204 | 2,039,386 | 1,982,332 | 1,922,899 |
| Total liabilities and stockholders’ equity | $17,399,009 | $17,227,828 | $17,300,884 | $16,402,405 | $16,076,299 |
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
| ($ in thousands) | Six months ended · June 30, 2026Average Balance | Six months ended · June 30, 2026Interest Income/ Expense | Six months ended · June 30, 2026Average Yield/ Rate | Six months ended · June 30, 2025Average Balance | Six months ended · June 30, 2025Interest Income/ Expense | Six months ended · June 30, 2025Average Yield/ Rate |
|---|---|---|---|---|---|---|
| AVERAGE BALANCE SHEET | ||||||
| Assets | ||||||
| Interest-earning assets: | ||||||
| Loans1, 2 | $11,776,799 | $374,199 | 6.41% | $11,299,832 | $370,046 | 6.60% |
| Taxable securities | 2,510,396 | 54,006 | 4.34 | 1,895,241 | 37,565 | 4.00 |
| Nontaxable securities² | 1,298,164 | 24,707 | 3.84 | 1,145,322 | 19,857 | 3.50 |
| Total securities | 3,808,560 | 78,713 | 4.17 | 3,040,563 | 57,422 | 3.81 |
| Interest-earning deposits | 467,589 | 8,230 | 3.55 | 396,986 | 8,492 | 4.31 |
| Total interest-earning assets | 16,052,948 | 461,142 | 5.79 | 14,737,381 | 435,960 | 5.97 |
| Noninterest-earning assets | 1,256,452 | 1,014,578 | ||||
| Total assets | $17,309,400 | $15,751,959 | ||||
| Liabilities and Stockholders’ Equity | ||||||
| Interest-bearing liabilities: | ||||||
| Interest-bearing demand accounts | $3,446,232 | $30,089 | 1.76% | $3,196,680 | $34,209 | 2.16% |
| Money market accounts | 3,981,147 | 50,986 | 2.58 | 3,630,955 | 56,941 | 3.16 |
| Savings accounts | 542,762 | 316 | 0.12 | 533,629 | 372 | 0.14 |
| Certificates of deposit | 1,682,361 | 29,028 | 3.48 | 1,430,917 | 27,723 | 3.91 |
| Total interest-bearing deposits | 9,652,502 | 110,419 | 2.31 | 8,792,181 | 119,245 | 2.74 |
| Subordinated debentures and notes | 107,074 | 3,583 | 6.75 | 156,684 | 5,299 | 6.82 |
| FHLB advances | 47,110 | 917 | 3.93 | 91,448 | 2,088 | 4.60 |
| Securities sold under agreements to repurchase | 234,866 | 2,776 | 2.38 | 238,058 | 3,609 | 3.06 |
| Other borrowings | 89,731 | 1,846 | 4.15 | 36,205 | 228 | 1.27 |
| Total interest-bearing liabilities | 10,131,283 | 119,541 | 2.38 | 9,314,576 | 130,469 | 2.82 |
| Noninterest-bearing liabilities: | ||||||
| Demand deposits | 4,956,803 | 4,401,504 | ||||
| Other liabilities | 157,013 | 151,080 | ||||
| Total liabilities | 15,245,099 | 13,867,160 | ||||
| Stockholders' equity | 2,064,301 | 1,884,799 | ||||
| Total liabilities and stockholders' equity | $17,309,400 | $15,751,959 | ||||
| Total net interest income | $341,601 | $305,491 | ||||
| Net interest margin | 4.29% | 4.18% | ||||
| ¹ Average balances include nonaccrual loans. Interest income includes net loan fees of $2.9 million and $3.4 million for the six months ended June 30, 2026 and June 30, 2025, respectively. | ||||||
| ² Non-taxable income is presented on a fully tax-equivalent basis using a tax rate of approximately 25%. The tax-equivalent adjustments were $6.7 million and $5.2 million for the six months ended June 30, 2026 and June 30, 2025, respectively. |
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
| ($ in thousands) | At or for the quarter endedJun 30, 2026 | At or for the quarter endedMar 31, 2026 | At or for the quarter endedDec 31, 2025 | At or for the quarter endedSep 30, 2025 | At or for the quarter endedJun 30, 2025 |
|---|---|---|---|---|---|
| LOAN PORTFOLIO | |||||
| Commercial and industrial | $5,257,840 | $5,168,533 | $5,231,616 | $4,943,561 | $4,870,268 |
| Commercial real estate | 5,556,856 | 5,453,966 | 5,453,821 | 5,178,649 | 5,074,100 |
| Construction real estate | 663,480 | 667,703 | 687,584 | 858,146 | 844,497 |
| Residential real estate | 361,346 | 346,181 | 367,682 | 365,010 | 364,281 |
| Consumer | 52,877 | 56,397 | 59,635 | 237,743 | 255,694 |
| Total loans | $11,892,399 | $11,692,780 | $11,800,338 | $11,583,109 | $11,408,840 |
| DEPOSIT PORTFOLIO | |||||
| Noninterest-bearing demand accounts | $4,910,235 | $4,828,375 | $4,874,115 | $4,386,513 | $4,322,332 |
| Interest-bearing demand accounts | 3,406,505 | 3,395,680 | 3,537,334 | 3,301,621 | 3,184,670 |
| Money market and savings accounts | 4,482,011 | 4,610,662 | 4,528,510 | 4,228,605 | 4,209,032 |
| Brokered certificates of deposit | 736,377 | 724,788 | 721,977 | 762,499 | 752,422 |
| Other certificates of deposit | 967,423 | 964,892 | 947,406 | 888,674 | 848,903 |
| Total deposits | $14,502,551 | $14,524,397 | $14,609,342 | $13,567,912 | $13,317,359 |
| AVERAGE BALANCES | |||||
| Loans | $11,775,879 | $11,777,727 | $11,794,459 | $11,454,183 | $11,358,209 |
| Securities | 3,833,994 | 3,782,844 | 3,623,965 | 3,353,305 | 3,149,010 |
| Interest-earning assets | 16,040,917 | 16,065,112 | 15,971,267 | 15,135,880 | 14,822,957 |
| Assets | 17,307,716 | 17,311,103 | 17,099,429 | 16,178,088 | 15,859,721 |
| Deposits | 14,608,514 | 14,609,433 | 14,537,381 | 13,604,302 | 13,245,241 |
| Stockholders’ equity | 2,052,233 | 2,076,504 | 2,022,472 | 1,964,126 | 1,906,089 |
| Tangible common equity¹ | 1,544,417 | 1,567,129 | 1,524,453 | 1,520,476 | 1,461,700 |
| YIELDS (tax-equivalent) | |||||
| Loans | 6.43% | 6.38% | 6.51% | 6.64% | 6.64% |
| Securities | 4.21 | 4.13 | 4.02 | 3.93 | 3.86 |
| Interest-earning assets | 5.82 | 5.77 | 5.86 | 5.99 | 6.00 |
| Interest-bearing deposits | 2.30 | 2.31 | 2.46 | 2.67 | 2.70 |
| Deposits | 1.53 | 1.52 | 1.64 | 1.80 | 1.82 |
| Subordinated debentures and notes | 6.87 | 6.59 | 6.61 | 7.78 | 7.00 |
| FHLB advances and other borrowed funds | 3.08 | 2.92 | 3.27 | 3.47 | 3.48 |
| Interest-bearing liabilities | 2.39 | 2.37 | 2.52 | 2.77 | 2.81 |
| Net interest margin | 4.30 | 4.28 | 4.26 | 4.23 | 4.21 |
¹ Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
| (in thousands, except per share data) | Quarter endedJun 30, 2026 | Quarter endedMar 31, 2026 | Quarter endedDec 31, 2025 | Quarter endedSep 30, 2025 | Quarter endedJun 30, 2025 |
|---|---|---|---|---|---|
| ASSET QUALITY | |||||
| Net charge-offs | $13,555 | $4,407 | $20,674 | $4,057 | $630 |
| Nonperforming loans | 76,144 | 64,941 | 82,809 | 127,878 | 105,807 |
| Classified assets | 413,779 | 430,288 | 410,485 | 352,792 | 281,162 |
| Nonperforming loans to total loans | 0.64% | 0.56% | 0.70% | 1.10% | 0.93% |
| Nonperforming assets to total assets | 0.92% | 0.87% | 0.95% | 0.83% | 0.71% |
| Allowance for credit losses to total loans | 1.17% | 1.21% | 1.19% | 1.29% | 1.27% |
| Allowance for credit losses to total loans, excluding guaranteed loans¹ | 1.27% | 1.32% | 1.29% | 1.40% | 1.38% |
| Allowance for credit losses to nonperforming loans | 182.9% | 218.8% | 169.1% | 116.4% | 137.2% |
| Net charge-offs to average loans - annualized | 0.46% | 0.15% | 0.70% | 0.14% | 0.02% |
| WEALTH MANAGEMENT | |||||
| Trust assets under management | $3,060,836 | $2,882,919 | $2,750,803 | $2,566,784 | $2,457,471 |
| SHARE DATA | |||||
| Book value per common share | $54.30 | $53.31 | $53.22 | $51.62 | $50.09 |
| Tangible book value per common share¹ | $42.30 | $41.38 | $41.37 | $41.58 | $40.02 |
| Market value per share | $65.88 | $54.11 | $54.00 | $57.98 | $55.10 |
| Period end common shares outstanding | 36,258 | 36,581 | 36,965 | 37,011 | 36,950 |
| Average basic common shares | 36,438 | 36,907 | 36,997 | 37,015 | 36,963 |
| Average diluted common shares | 36,697 | 37,152 | 37,265 | 37,333 | 37,172 |
| CAPITAL | |||||
| Total risk-based capital to risk-weighted assets² | 15.0% | 13.9% | 13.9% | 14.4% | 14.7% |
| Tier 1 capital to risk-weighted assets² | 12.7% | 12.9% | 12.8% | 13.3% | 13.2% |
| Common equity tier 1 capital to risk-weighted assets² | 11.5% | 11.7% | 11.6% | 12.0% | 11.9% |
| Tangible common equity to tangible assets¹ | 9.04% | 9.01% | 9.07% | 9.60% | 9.42% |
| ¹ Refer to Reconciliations of Non-GAAP Financial Measures tables for a reconciliation of these measures to GAAP. | |||||
| ² Capital ratios for the current quarter are preliminary and subject to, among other things, completion and filing of the Company’s regulatory reports and ongoing regulatory review. |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
| ($ in thousands) | Quarter endedJun 30, 2026 | Quarter endedMar 31, 2026 | Quarter endedDec 31, 2025 | Quarter endedSep 30, 2025 | Quarter endedJun 30, 2025 | Six months endedJun 30, 2026 | Six months endedJun 30, 2025 |
|---|---|---|---|---|---|---|---|
| CORE EFFICIENCY RATIO | |||||||
| Net interest income (GAAP) | $168,716 | $166,147 | $168,174 | $158,286 | $152,762 | $334,863 | $300,278 |
| Tax-equivalent adjustment | 3,418 | 3,320 | 3,477 | 3,045 | 2,738 | 6,738 | 5,213 |
| Noninterest income (GAAP) | 13,478 | 19,088 | 25,412 | 48,624 | 20,604 | 32,566 | 39,087 |
| Less insurance recoveries¹ | — | — | — | 32,112 | — | — | — |
| Less gain on sales of fixed assets | 687 | — | — | — | — | 687 | — |
| Less net gain (loss) on sales of investment securities | (2,146) | — | (57) | — | — | (2,146) | 106 |
| Less net gain (loss) on OREO | (302) | (295) | 6,169 | 7 | 56 | (597) | 79 |
| Core revenue (non-GAAP) | $187,373 | $188,850 | $190,951 | $177,836 | $176,048 | $376,223 | $344,393 |
| Noninterest expense (GAAP) | $115,739 | $115,137 | $114,532 | $109,790 | $105,702 | $230,876 | $205,485 |
| Less FDIC special assessment | — | — | (652) | — | — | — | — |
| Less amortization on intangibles | 1,297 | 1,400 | 1,380 | 736 | 753 | 2,697 | 1,608 |
| Less acquisition costs | — | — | 2,548 | 609 | 518 | — | 518 |
| Core noninterest expense (non-GAAP) | $114,442 | $113,737 | $111,256 | $108,445 | $104,431 | $228,179 | $203,359 |
| Core efficiency ratio (non-GAAP) | 61.1% | 60.2% | 58.3% | 61.0% | 59.3% | 60.7% | 59.1% |
| ¹ Represents anticipated proceeds from a pending insurance claim related to a third quarter 2025 solar tax credit recapture event. |
| (in thousands, except per share data) | Quarter endedJun 30, 2026 | Quarter endedMar 31, 2026 | Quarter endedDec 31, 2025 | Quarter endedSep 30, 2025 | Quarter endedJun 30, 2025 |
|---|---|---|---|---|---|
| TANGIBLE COMMON EQUITY, TANGIBLE BOOK VALUE PER COMMON SHARE AND TANGIBLE COMMON EQUITY RATIO | |||||
| Stockholders’ equity (GAAP) | $2,040,846 | $2,022,204 | $2,039,386 | $1,982,332 | $1,922,899 |
| Less preferred stock | 71,988 | 71,988 | 71,988 | 71,988 | 71,988 |
| Less goodwill | 416,968 | 416,968 | 416,968 | 365,164 | 365,164 |
| Less intangible assets | 18,228 | 19,525 | 21,175 | 6,140 | 6,876 |
| Tangible common equity (non-GAAP) | $1,533,662 | $1,513,723 | $1,529,255 | $1,539,040 | $1,478,871 |
| Less net unrealized losses on HTM securities, after tax | 28,584 | 39,080 | 26,431 | 37,341 | 56,508 |
| Tangible common equity adjusted for unrealized losses on HTM securities (non-GAAP) | $1,505,078 | $1,474,643 | $1,502,824 | $1,501,699 | $1,422,363 |
| Common shares outstanding | 36,258 | 36,581 | 36,965 | 37,011 | 36,950 |
| Tangible book value per common share (non-GAAP) | $42.30 | $41.38 | $41.37 | $41.58 | $40.02 |
| Total assets (GAAP) | $17,399,009 | $17,227,828 | $17,300,884 | $16,402,405 | $16,076,299 |
| Less goodwill | 416,968 | 416,968 | 416,968 | 365,164 | 365,164 |
| Less intangible assets | 18,228 | 19,525 | 21,175 | 6,140 | 6,876 |
| Tangible assets (non-GAAP) | $16,963,813 | $16,791,335 | $16,862,741 | $16,031,101 | $15,704,259 |
| Tangible common equity to tangible assets (non-GAAP) | 9.04% | 9.01% | 9.07% | 9.60% | 9.42% |
| Tangible common equity to tangible assets adjusted for unrealized losses on HTM securities (non-GAAP) | 8.87% | 8.78% | 8.91% | 9.37% | 9.06% |
| ($ in thousands) | Quarter endedJun 30, 2026 | Quarter endedMar 31, 2026 | Quarter endedDec 31, 2025 | Quarter endedSep 30, 2025 | Quarter endedJun 30, 2025 | Six months endedJun 30, 2026 | Six months endedJun 30, 2025 |
|---|---|---|---|---|---|---|---|
| RETURN ON AVERAGE TANGIBLE COMMON EQUITY (ROATCE), RETURN ON AVERAGE ASSETS (ROAA) AND DILUTED EARNINGS PER SHARE | |||||||
| Average stockholder’s equity (GAAP) | $2,052,233 | $2,076,504 | $2,022,472 | $1,964,126 | $1,906,089 | $2,064,301 | $1,884,799 |
| Less average preferred stock | 71,988 | 71,988 | 71,988 | 71,988 | 71,988 | 71,988 | 71,988 |
| Less average goodwill | 416,968 | 416,968 | 414,858 | 365,164 | 365,164 | 416,968 | 365,164 |
| Less average intangible assets | 18,860 | 20,419 | 11,173 | 6,498 | 7,237 | 19,635 | 7,629 |
| Average tangible common equity (non-GAAP) | $1,544,417 | $1,567,129 | $1,524,453 | $1,520,476 | $1,461,700 | $1,555,710 | $1,440,018 |
| Net income (GAAP) | $40,927 | $49,362 | $54,794 | $45,235 | $51,384 | $90,289 | $101,345 |
| FDIC special assessment (after tax) | — | — | (488) | — | — | — | — |
| Acquisition costs (after tax) | — | — | 1,742 | 549 | 462 | — | 462 |
| Less net gain on sales of fixed assets (after tax) | 515 | — | — | — | — | 515 | — |
| Less net gain (loss) on sales of investment securities (after tax) | (1,607) | — | (43) | — | — | (1,607) | 80 |
| Less net gain (loss) on OREO (after tax) | (226) | (221) | 4,621 | 5 | 42 | (447) | 59 |
| Net income adjusted (non-GAAP) | $42,245 | $49,583 | $51,470 | $45,779 | $51,804 | $91,828 | $101,668 |
| Less preferred stock dividends | 937 | 938 | 937 | 938 | 937 | 1,875 | 1,875 |
| Net income available to common stockholders adjusted (non-GAAP) | $41,308 | $48,645 | $50,533 | $44,841 | $50,867 | $89,953 | $99,793 |
| Return on average common equity (non-GAAP) | 8.10% | 9.80% | 10.95% | 9.29% | 11.03% | 8.95% | 11.07% |
| Adjusted return on average common equity (non-GAAP) | 8.37% | 9.84% | 10.28% | 9.40% | 11.12% | 9.10% | 11.10% |
| ROATCE (non-GAAP) | 10.39% | 12.53% | 14.02% | 11.56% | 13.84% | 11.46% | 13.93% |
| Adjusted ROATCE (non-GAAP) | 10.73% | 12.59% | 13.15% | 11.70% | 13.96% | 11.66% | 13.97% |
| Average assets | $17,307,716 | $17,311,103 | $17,099,429 | $16,178,088 | $15,859,721 | $17,309,400 | $15,751,959 |
| Return on average assets (GAAP) | 0.95% | 1.16% | 1.27% | 1.11% | 1.30% | 1.05% | 1.30% |
| Adjusted return on average assets (non-GAAP) | 0.98% | 1.16% | 1.19% | 1.12% | 1.31% | 1.07% | 1.30% |
| Average diluted common shares | 36,697 | 37,152 | 37,265 | 37,333 | 37,172 | 36,926 | 37,224 |
| Diluted earnings per share (GAAP) | $1.09 | $1.30 | $1.45 | $1.19 | $1.36 | $2.39 | $2.67 |
| Adjusted diluted earnings per share (non-GAAP) | $1.13 | $1.31 | $1.36 | $1.20 | $1.37 | $2.44 | $2.68 |
| ($ in thousands) | Quarter endedJun 30, 2026 | Quarter endedMar 31, 2026 | Quarter endedDec 31, 2025 | Quarter endedSep 30, 2025 | Quarter endedJun 30, 2025 |
|---|---|---|---|---|---|
| CALCULATION OF PRE-PROVISION NET REVENUE (PPNR) | |||||
| Net interest income (GAAP) | $168,716 | $166,147 | $168,174 | $158,286 | $152,762 |
| Noninterest income (GAAP) | 13,478 | 19,088 | 25,412 | 48,624 | 20,604 |
| FDIC special assessment | — | — | (652) | — | — |
| Acquisition costs | — | — | 2,548 | 609 | 518 |
| Less net loss on sales of investment securities | (2,146) | — | (57) | — | — |
| Less net gain (loss) on OREO | (302) | (295) | 6,169 | 7 | 56 |
| Less gain on sales of fixed assets | 687 | — | — | — | — |
| Less insurance recoveries | — | — | — | 32,112 | — |
| Less noninterest expense (GAAP) | 115,739 | 115,137 | 114,532 | 109,790 | 105,702 |
| PPNR (non-GAAP) | $68,216 | $70,393 | $74,838 | $65,610 | $68,126 |
| ($ in thousands) | AtJun 30, 2026 | AtMar 31, 2026 | AtDec 31, 2025 | AtSep 30, 2025 | AtJun 30, 2025 |
|---|---|---|---|---|---|
| ALLOWANCE TO LOANS RATIO EXCLUDING GUARANTEED LOANS | |||||
| Loans (GAAP) | $11,892,399 | $11,692,780 | $11,800,338 | $11,583,109 | $11,408,840 |
| Less guaranteed loans | 939,255 | 935,409 | 960,132 | 922,168 | 913,118 |
| Adjusted loans (non-GAAP) | $10,953,144 | $10,757,371 | $10,840,206 | $10,660,941 | $10,495,722 |
| Allowance for credit losses | $139,238 | $142,064 | $140,022 | $148,854 | $145,133 |
| Allowance for credit losses/loans (GAAP) | 1.17% | 1.21% | 1.19% | 1.29% | 1.27% |
| Allowance for credit losses/adjusted loans (non-GAAP) | 1.27% | 1.32% | 1.29% | 1.40% | 1.38% |