Enterprise Financial Services Corp Reports Third Quarter 2026 Results
Third Quarter Results
- Net income of $42.4 million, or $1.14 per diluted common share, compared to $1.09 for the linked quarter and $1.19 for the prior year quarter
- Net interest margin (“NIM”) of 4.30%, stable with the linked quarter
- Net interest income of $174.6 million, quarterly increase of $5.9 million
- Total loans of $12.3 billion, quarterly increase of $452.3 million
- Total deposits of $15.1 billion, quarterly increase of $624.4 million
- Return on average assets (“ROAA”) of 0.95% for the current and linked quarters, compared to 1.11% for the prior year quarter
- Return on average tangible common equity (“ROATCE”)1 of 10.74%, compared to 10.39% for the linked quarter and 11.56% for the prior year quarter
- Tangible common equity to tangible assets1 of 8.13%, compared to 9.04% in the linked quarter and 9.60% in the prior year quarter
- Tangible book value per common share1 of $39.45, compared to $42.30 for the linked quarter and $41.58 for the prior year quarter
- Returned $46.5 million to stockholders through the repurchase of 525,767 shares for $34.0 million and $12.5 million through common stock dividends
- Increased quarterly dividend $0.01 to $0.36 per common share for the fourth quarter 2026
ST. LOUIS--(BUSINESS WIRE)--Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”) today announced financial results for the third quarter of 2026. “The strong loan and deposit growth that our team delivered this quarter reflects our associates’ continued commitment to our clients and the strength of our diversified business platform,” said Jim Lally, President and Chief Executive Officer. “We have continued to grow net interest income which helped offset a higher provision for credit losses for the quarter. The strength of our balance sheet and solid return profile provides the foundation to support our growth while continuing to return capital to stockholders.”
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”). Noninterest income for the prior year quarter also included $32.1 million of anticipated insurance proceeds from a pending claim related to a recapture event with respect to a $24.1 million solar tax credit that the Company purchased and applied to prior taxable periods. The anticipated proceeds from the insurance policy and tax liability resulting from the recapture event, both totaling $32.1 million, are included in “Noninterest Income” and “Income Tax Expense”, respectively, in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2025.
______________________________________ 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. |
Highlights
- Earnings - Net income in the third quarter 2026 was $42.4 million, an increase of $1.5 million and a decrease of $2.8 million compared to the linked and prior year quarters, respectively. Earnings per diluted common share for the third quarter 2026 was $1.14, compared to $1.09 and $1.19 for the linked and prior year quarters, respectively. Adjusted diluted earnings per share2 was $1.17 in the third quarter 2026, compared to $1.13 and $1.20 in the linked and prior year quarters, respectively.
- Pre-provision net revenue (“PPNR”)2 - PPNR of $74.6 million in the third quarter 2026 increased $6.4 million and $9.0 million from the linked and prior year quarter, respectively. The increase from the linked and prior year quarters was primarily due to an increase in net interest income. Compared to the prior year quarter, the increase was partially offset by an increase in noninterest expense.
- Net interest income and NIM - Net interest income of $174.6 million for the third quarter 2026 increased $5.9 million and $16.3 million from the linked and prior year quarters, respectively. Compared to the linked quarter, net interest income benefitted from organic loan growth, 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 and a decrease on rates paid on interest-bearing liabilities. NIM was 4.30% for the current and linked quarters, respectively, and 4.23% for the prior year quarter. The total cost of deposits of 1.54% for the third quarter 2026 increased one basis point and decreased 26 basis points from the linked and prior year quarters, respectively.
- Noninterest income - Noninterest income of $13.2 million for the third quarter 2026 decreased $0.3 million and $35.4 million from the linked and prior year quarters, respectively. Excluding the anticipated insurance proceeds from the pending claim related to the tax credit recapture event included in the prior year quarter, noninterest income decreased $3.3 million from the prior year quarter. The decrease in noninterest income from the linked and prior year quarters was primarily due to a decrease in tax credit income and a net loss on other real estate owned (“OREO”), partially offset by higher rental income included in other income.
- Noninterest expense - Noninterest expense of $114.7 million for the third quarter 2026 decreased $1.1 million from the linked quarter and increased $4.9 million from the prior year quarter. The decrease from the linked quarter was primarily driven by lower employee compensation, partially offset by an increase in loan and legal expenses related to OREO and loan workouts. Compared to the prior year quarter, the increase was primarily due to an increase in loan and legal expenses related to OREO and loan workouts, and higher employee compensation as a result of an increase in the associate base and merit increases.
- Loans - Loans totaled $12.3 billion at September 30, 2026, an increase of $452.3 million and $761.6 million from the linked and prior year quarters, respectively. Average loans totaled $12.1 billion for the current quarter, compared to $11.8 billion and $11.5 billion for the linked and prior year quarters, respectively.
- Asset quality - The allowance for credit losses to total loans was 1.17% at September 30, 2026 and June 30, 2026, respectively, and 1.29% at September 30, 2025. The provision for credit losses in the third quarter 2026 was $18.1 million, compared to $14.2 million and $8.4 million for the linked and prior year quarters, respectively. The ratio of nonperforming assets to total assets was 1.03% at September 30, 2026, compared to 0.92% and 0.83% at June 30, 2026 and September 30, 2025, respectively.
- Deposits - Deposits totaled $15.1 billion at September 30, 2026, an increase of $624.4 million and $1.6 billion from the linked and prior year quarters, respectively. Average deposits were $15.0 billion for the current quarter, compared to $14.6 billion and $13.6 billion for the linked and prior year quarter, respectively. At September 30, 2026, noninterest-bearing deposit accounts totaled $5.0 billion, or 33% of total deposits, and the loan to deposit ratio was 82%.
- Capital - Total stockholders’ equity was $1.9 billion and the tangible common equity to tangible assets ratio3 was 8.13% at September 30, 2026, compared to $2.0 billion and 9.04%, respectively, at June 30, 2026. Enterprise Bank & Trust remains “well-capitalized,” with a common equity tier 1 ratio of 11.8% and a total risk-based capital ratio of 12.8% at September 30, 2026. The Company’s common equity tier 1 ratio and total risk-based capital ratio were 11.1% and 14.4%, respectively, at September 30, 2026.
The Company’s Board of Directors (the “Board”) approved a quarterly dividend of $0.36 per common share, payable on December 31, 2026 to stockholders of record as of December 15, 2026. The Board also declared a cash dividend of $12.50 per share of Series A Preferred Stock (or $0.3125 per depositary share) representing a 5% per annum rate for the period commencing (and including) September 15, 2026 to (but excluding) December 15, 2026. The dividend will be payable on December 15, 2026 to stockholders of record of Series A Preferred Stock as of November 30, 2026.
______________________________________ 2 Adjusted diluted earnings per share and PPNR are non-GAAP measures. Please refer to discussion and reconciliation of these measures in the accompanying financial tables. |
3 Tangible common equity to tangible assets ratio is a non-GAAP measure. Please refer to discussion and reconciliation of this measure in the accompanying financial tables. |
Net Interest Income and NIM
Average Balance Sheets
The following table presents, for the periods indicated, certain information related to the average interest-earning assets and interest-bearing liabilities, as well as the corresponding average interest rates earned and paid, all on a tax-equivalent basis.
| Quarter ended | |||||||||||||||||||||||||||||||
| September 30, 2026 |
| June 30, 2026 |
| September 30, 2025 | |||||||||||||||||||||||||||
($ in thousands) | Average Balance |
| Interest Income/ Expense |
| Average Yield/ Rate |
| Average Balance |
| Interest Income/ Expense |
| Average Yield/ Rate |
| Average Balance |
| Interest Income/ Expense |
| Average Yield/ Rate | |||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Loans1, 2 | $ | 12,067,288 |
| $ | 195,309 |
| 6.42 | % |
| $ | 11,775,879 |
| $ | 188,819 |
| 6.43 | % |
| $ | 11,454,183 |
| $ | 191,589 |
| 6.64 | % | ||||||
Taxable securities |
| 2,589,972 |
|
|
| 29,378 |
|
| 4.50 |
|
|
| 2,539,301 |
|
|
| 27,898 |
|
| 4.41 |
|
|
| 2,100,748 |
|
|
| 21,705 |
|
| 4.10 |
|
Non-taxable securities2 |
| 1,294,511 |
|
|
| 12,510 |
|
| 3.83 |
|
|
| 1,294,693 |
|
|
| 12,317 |
|
| 3.82 |
|
|
| 1,252,557 |
|
|
| 11,503 |
|
| 3.64 |
|
Total securities |
| 3,884,483 |
|
|
| 41,888 |
|
| 4.28 |
|
|
| 3,833,994 |
|
|
| 40,215 |
|
| 4.21 |
|
|
| 3,353,305 |
|
|
| 33,208 |
|
| 3.93 |
|
Interest-earning deposits |
| 465,119 |
|
|
| 4,343 |
|
| 3.70 |
|
|
| 431,044 |
|
|
| 3,697 |
|
| 3.44 |
|
|
| 328,392 |
|
|
| 3,638 |
|
| 4.40 |
|
Total interest-earning assets |
| 16,416,890 |
|
|
| 241,540 |
|
| 5.84 |
|
|
| 16,040,917 |
|
|
| 232,731 |
|
| 5.82 |
|
|
| 15,135,880 |
|
|
| 228,435 |
|
| 5.99 |
|
Noninterest-earning assets |
| 1,279,189 |
|
|
|
|
|
|
| 1,266,799 |
|
|
|
|
|
|
| 1,042,208 |
|
|
|
|
| |||||||||
Total assets | $ | 17,696,079 |
|
|
|
|
|
| $ | 17,307,716 |
|
|
|
|
|
| $ | 16,178,088 |
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Interest-bearing demand accounts | $ | 3,641,074 |
|
| $ | 16,877 |
|
| 1.84 | % |
| $ | 3,438,895 |
|
| $ | 15,149 |
|
| 1.77 | % |
| $ | 3,298,022 |
|
| $ | 17,488 |
|
| 2.10 | % |
Money market accounts |
| 4,047,970 |
|
|
| 26,316 |
|
| 2.58 |
|
|
| 4,009,504 |
|
|
| 25,788 |
|
| 2.58 |
|
|
| 3,706,891 |
|
|
| 28,734 |
|
| 3.08 |
|
Savings accounts |
| 536,184 |
|
|
| 170 |
|
| 0.13 |
|
|
| 546,880 |
|
|
| 164 |
|
| 0.12 |
|
|
| 532,015 |
|
|
| 183 |
|
| 0.14 |
|
Certificates of deposit |
| 1,697,479 |
|
|
| 14,648 |
|
| 3.42 |
|
|
| 1,698,565 |
|
|
| 14,569 |
|
| 3.44 |
|
|
| 1,609,346 |
|
|
| 15,210 |
|
| 3.75 |
|
Total interest-bearing deposits |
| 9,922,707 |
|
|
| 58,011 |
|
| 2.32 |
|
|
| 9,693,844 |
|
|
| 55,670 |
|
| 2.30 |
|
|
| 9,146,274 |
|
|
| 61,615 |
|
| 2.67 |
|
Subordinated debentures and notes |
| 262,795 |
|
|
| 4,408 |
|
| 6.65 |
|
|
| 120,277 |
|
|
| 2,061 |
|
| 6.87 |
|
|
| 136,895 |
|
|
| 2,683 |
|
| 7.78 |
|
FHLB advances |
| 19,511 |
|
|
| 200 |
|
| 4.07 |
|
|
| 88,011 |
|
|
| 861 |
|
| 3.92 |
|
|
| 106,130 |
|
|
| 1,207 |
|
| 4.51 |
|
Securities sold under agreements to repurchase |
| 169,322 |
|
|
| 914 |
|
| 2.14 |
|
|
| 200,060 |
|
|
| 1,162 |
|
| 2.33 |
|
|
| 159,039 |
|
|
| 1,155 |
|
| 2.88 |
|
Other borrowings |
| 36,262 |
|
|
| 95 |
|
| 1.04 |
|
|
| 84,609 |
|
|
| 843 |
|
| 4.00 |
|
|
| 56,164 |
|
|
| 444 |
|
| 3.14 |
|
Total interest-bearing liabilities |
| 10,410,597 |
|
|
| 63,628 |
|
| 2.42 |
|
|
| 10,186,801 |
|
|
| 60,597 |
|
| 2.39 |
|
|
| 9,604,502 |
|
|
| 67,104 |
|
| 2.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Demand deposits |
| 5,065,373 |
|
|
|
|
|
|
| 4,914,670 |
|
|
|
|
|
|
| 4,458,028 |
|
|
|
|
| |||||||||
Other liabilities |
| 179,865 |
|
|
|
|
|
|
| 154,012 |
|
|
|
|
|
|
| 151,432 |
|
|
|
|
| |||||||||
Total liabilities |
| 15,655,835 |
|
|
|
|
|
|
| 15,255,483 |
|
|
|
|
|
|
| 14,213,962 |
|
|
|
|
| |||||||||
Stockholders' equity |
| 2,040,244 |
|
|
|
|
|
|
| 2,052,233 |
|
|
|
|
|
|
| 1,964,126 |
|
|
|
|
| |||||||||
Total liabilities and stockholders' equity | $ | 17,696,079 |
|
|
|
|
|
| $ | 17,307,716 |
|
|
|
|
|
| $ | 16,178,088 |
|
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total net interest income |
|
| $ | 177,912 |
|
|
|
|
|
| $ | 172,134 |
|
|
|
|
|
| $ | 161,331 |
|
|
| |||||||||
Net interest margin |
|
|
|
| 4.30 | % |
|
|
|
|
| 4.30 | % |
|
|
|
|
| 4.23 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
1 Average balances include nonaccrual loans. Interest income includes net loan fees of $2.0 million, $1.5 million, and $1.9 million for each of the three months ended September 30, 2026, June 30, 2026, and September 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 $3.3 million, $3.4 million, and $3.0 million for each of the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. | ||||||||||||||||||||||||||||||||
Net interest income of $174.6 million for the third quarter 2026 increased $5.9 million and $16.3 million from the linked and prior year quarters, respectively. Net interest income on a tax-equivalent basis was $177.9 million, $172.1 million and $161.3 million for the current, linked and prior year quarters, respectively. The increase from the linked quarter reflects organic loan growth and the benefit of 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 certificates of deposit and money market accounts.
Interest income for the third quarter 2026 increased $8.9 million and $12.8 million from the linked and prior year quarters, respectively. The increase from the linked quarter was primarily due to a $291.4 million increase in average loans, a $50.5 million increase in average 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 $613.1 million and $531.2 million in average loan and investment securities balances, respectively, partially offset by a 15 basis point decrease in the yield on interest-earning assets. The average interest rate of new loan originations in the third quarter 2026 was 6.61%, and investment purchases in the third quarter 2026 had a weighted average, tax-equivalent yield of 4.74%.
Interest expense in the third quarter 2026 increased $3.0 million and decreased $3.5 million from the linked and prior year quarters, respectively. Compared to the linked quarter, the increase in interest expense was primarily due to the first full quarter of $175 million of subordinated debt issued in the linked quarter and higher interest-bearing demand account balances, partially offset by the redemption of $7.7 million of 10.2% fixed rate trust preferred securities in the current quarter. Compared to the prior year quarter, the decrease was primarily due to decreased interest paid on interest-bearing liabilities, partially offset by a $806.1 million increase in the average balance of interest-bearing liabilities. The rate paid on interest-bearing liabilities was 2.42% during the third quarter 2026, compared to 2.39% and 2.77% in the linked and prior year quarters, respectively.
NIM, on a tax-equivalent basis, was 4.30% in the third quarter 2026, stable with the linked quarter and an increase of seven basis points from the prior year quarter. For the month of September 2026, the loan portfolio yield was 6.47% and the cost of total deposits was 1.57%.
Investments
| At | ||||||||||||||||||||||
| September 30, 2026 |
| June 30, 2026 |
| September 30, 2025 | ||||||||||||||||||
($ in thousands) | Carrying Value |
| Net Unrealized Loss |
| Carrying Value |
| Net Unrealized Loss |
| Carrying Value |
| Net Unrealized Loss | ||||||||||||
Available-for-sale (AFS) | $ | 2,730,596 |
| $ | (251,071 | ) |
| $ | 2,795,725 |
| $ | (101,080 | ) |
| $ | 2,351,493 |
| $ | (102,269 | ) | |||
Held-to-maturity (HTM) |
| 1,030,084 |
|
|
| (116,265 | ) |
|
| 1,036,477 |
|
|
| (38,163 | ) |
|
| 1,081,847 |
|
|
| (49,656 | ) |
Total | $ | 3,760,680 |
|
| $ | (367,336 | ) |
| $ | 3,832,202 |
|
| $ | (139,243 | ) |
| $ | 3,433,340 |
|
| $ | (151,925 | ) |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Investment securities totaled $3.8 billion at September 30, 2026, a decrease of $71.5 million from the linked quarter. The tangible common equity to tangible assets ratio adjusted for unrealized losses on HTM securities4 was 7.63% at September 30, 2026, compared to 8.87% at June 30, 2026.
______________________________________ 4 The tangible common equity to tangible assets ratio adjusted for unrealized losses on held-to-maturity securities is a non-GAAP measure. Refer to discussion and reconciliation of this measure in the accompanying financial tables. |
Loans
The following table presents total loans for the most recent five quarters:
| At | ||||||||||||||||||
($ in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
| ||||||||||
C&I | $ | 2,707,185 |
|
| $ | 2,628,065 |
|
| $ | 2,655,273 |
|
| $ | 2,606,472 |
|
| $ | 2,320,868 |
|
CRE investor owned |
| 3,040,845 |
|
|
| 2,902,890 |
|
|
| 2,763,227 |
|
|
| 2,786,139 |
|
|
| 2,626,657 |
|
CRE owner occupied |
| 1,454,715 |
|
|
| 1,421,859 |
|
|
| 1,452,350 |
|
|
| 1,404,704 |
|
|
| 1,296,902 |
|
SBA loans* |
| 1,245,288 |
|
|
| 1,237,294 |
|
|
| 1,230,455 |
|
|
| 1,262,456 |
|
|
| 1,257,817 |
|
Sponsor finance* |
| 713,614 |
|
|
| 708,449 |
|
|
| 661,946 |
|
|
| 694,905 |
|
|
| 774,142 |
|
Life insurance premium financing* |
| 1,349,925 |
|
|
| 1,250,250 |
|
|
| 1,208,098 |
|
|
| 1,187,128 |
|
|
| 1,151,700 |
|
Tax credits* |
| 749,810 |
|
|
| 725,452 |
|
|
| 702,080 |
|
|
| 802,818 |
|
|
| 780,767 |
|
Residential real estate |
| 352,075 |
|
|
| 356,342 |
|
|
| 340,966 |
|
|
| 362,278 |
|
|
| 359,315 |
|
Construction and land development |
| 681,068 |
|
|
| 608,923 |
|
|
| 621,988 |
|
|
| 633,803 |
|
|
| 784,218 |
|
Consumer** |
| 50,180 |
|
|
| 52,875 |
|
|
| 56,397 |
|
|
| 59,635 |
|
|
| 230,723 |
|
Total loans | $ | 12,344,705 |
|
| $ | 11,892,399 |
|
| $ | 11,692,780 |
|
| $ | 11,800,338 |
|
| $ | 11,583,109 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Quarterly loan yield |
| 6.42 | % |
|
| 6.43 | % |
|
| 6.38 | % |
|
| 6.51 | % |
|
| 6.64 | % |
|
|
|
|
|
|
|
|
|
| ||||||||||
Loans by rate type (to total loans): |
|
|
|
|
|
|
|
|
| ||||||||||
Fixed |
| 37 | % |
|
| 37 | % |
|
| 37 | % |
|
| 40 | % |
|
| 41 | % |
Variable: |
| 63 | % |
|
| 63 | % |
|
| 63 | % |
|
| 60 | % |
|
| 59 | % |
SOFR |
| 33 | % |
|
| 32 | % |
|
| 32 | % |
|
| 30 | % |
|
| 29 | % |
Prime |
| 23 | % |
|
| 24 | % |
|
| 24 | % |
|
| 23 | % |
|
| 23 | % |
Other |
| 7 | % |
|
| 7 | % |
|
| 7 | % |
|
| 7 | % |
|
| 7 | % |
|
|
|
|
|
|
|
|
|
| ||||||||||
Variable rate loans to total loans, adjusted for interest rate hedges |
| 57 | % |
|
| 58 | % |
|
| 59 | % |
|
| 56 | % |
|
| 55 | % |
| |||||||||||||||||||
*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 $12.3 billion at September 30, 2026, an increase of $452.3 million compared to the linked quarter. The increase from the linked quarter was primarily driven by a 12% increase in the construction and land development portfolio, an 8% increase in the life insurance premium financing portfolio and a 5% increase in the CRE investor owned portfolio. Combined, these three categories accounted for $310 million in net loan growth during the current quarter. Loan production outpaced repayment activity in the quarter with loan volume of $1.3 billion compared to repayment activity of $800.7 million. Average line utilization was approximately 47% for the current and linked quarters, respectively, compared to 45% for the prior year quarter.
Asset Quality
The following table presents the categories of nonperforming assets and related ratios for the most recent five quarters:
| At | ||||||||||||||||||
($ in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
| ||||||||||
Nonperforming loans* | $ | 87,270 |
|
| $ | 76,144 |
|
| $ | 64,941 |
|
| $ | 82,809 |
|
| $ | 127,878 |
|
Other1 |
| 95,582 |
|
|
| 84,259 |
|
|
| 84,482 |
|
|
| 81,544 |
|
|
| 7,821 |
|
Nonperforming assets* | $ | 182,852 |
|
| $ | 160,403 |
|
| $ | 149,423 |
|
| $ | 164,353 |
|
| $ | 135,699 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Nonperforming loans to total loans |
| 0.71 | % |
|
| 0.64 | % |
|
| 0.56 | % |
|
| 0.70 | % |
|
| 1.10 | % |
Nonperforming assets to total assets |
| 1.03 | % |
|
| 0.92 | % |
|
| 0.87 | % |
|
| 0.95 | % |
|
| 0.83 | % |
Allowance for credit losses | $ | 144,519 |
|
| $ | 139,238 |
|
| $ | 142,064 |
|
| $ | 140,022 |
|
| $ | 148,854 |
|
Allowance for credit losses to total loans |
| 1.17 | % |
|
| 1.17 | % |
|
| 1.21 | % |
|
| 1.19 | % |
|
| 1.29 | % |
Allowance for credit losses to nonperforming loans* |
| 165.6 | % |
|
| 182.9 | % |
|
| 218.8 | % |
|
| 169.1 | % |
|
| 116.4 | % |
Quarterly net charge-offs | $ | 11,036 |
|
| $ | 13,555 |
|
| $ | 4,407 |
|
| $ | 20,674 |
|
| $ | 4,057 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
*Guaranteed balances excluded | $ | 53,650 |
|
| $ | 40,698 |
|
| $ | 28,243 |
|
| $ | 28,903 |
|
| $ | 33,475 |
|
1OREO 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 September 30, 2026:
($ in thousands) | Nonperforming Loans |
| Government Guaranteed |
| Nonperforming Loans, net |
| ACL Reserve Allocation | ||||||||
C&I | $ | 34,193 |
| $ | (1,155 | ) |
| $ | 33,038 |
| $ | (14,977 | ) | ||
CRE investor owned |
| 32,762 |
|
|
| (7,189 | ) |
|
| 25,573 |
|
|
| (22 | ) |
CRE owner occupied |
| 69,004 |
|
|
| (43,300 | ) |
|
| 25,704 |
|
|
| (1,482 | ) |
SBA (included in CRE owner occupied) |
| 55,318 |
|
|
| (43,300 | ) |
|
| 12,018 |
|
|
| (658 | ) |
Other |
| 4,961 |
|
|
| (2,006 | ) |
|
| 2,955 |
|
|
| (267 | ) |
Total | $ | 140,920 |
|
| $ | (53,650 | ) |
| $ | 87,270 |
|
| $ | (16,748 | ) |
Other1 |
|
|
|
|
| 95,582 |
|
|
| ||||||
Nonperforming assets |
|
|
|
| $ | 182,852 |
|
|
| ||||||
|
|
|
|
|
|
|
| ||||||||
1OREO and repossessed assets transferred at fair value, and carried at the lesser of cost or market value. | |||||||||||||||
Nonperforming assets increased $22.4 million and $47.2 million from the linked and prior year quarters, respectively. In the current quarter, the Company foreclosed on a CRE relationship with a book value of $15.5 million that was transferred to OREO at fair market value, less selling costs, resulting in a partial charge-off of $2.6 million. The increase in nonperforming assets compared to the linked quarter is primarily due to $18.0 million in agricultural-related loans, a $7.5 million CRE relationship and a $4.1 million C&I relationship that went on nonaccrual.
The provision for credit losses totaled $18.1 million in the third quarter 2026, compared to $14.2 million and $8.4 million in the linked and prior year quarters, respectively. The third quarter 2026 provision for credit losses was driven mainly by $11.0 million in net charge-offs, the increase in nonperforming loans and organic loan growth. Charge-offs during the period primarily consisted of a $7.0 million C&I relationship in Missouri and the $2.6 million charge-off noted above. Annualized net charge-offs totaled 36 basis points of average loans in the current quarter, compared to 46 basis points in the linked quarter and 14 basis points of average loans in the prior year quarter.
Deposits
The following table presents deposits broken out by type for the most recent five quarters:
| At | ||||||||||||||||||
($ in thousands) |
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
| ||||||||||
Noninterest-bearing demand accounts | $ | 5,043,875 |
|
| $ | 4,910,235 |
|
| $ | 4,828,375 |
|
| $ | 4,874,115 |
|
| $ | 4,386,513 |
|
Interest-bearing demand accounts |
| 3,723,393 |
|
|
| 3,406,505 |
|
|
| 3,395,680 |
|
|
| 3,537,334 |
|
|
| 3,301,621 |
|
Money market and savings accounts |
| 4,664,512 |
|
|
| 4,482,011 |
|
|
| 4,610,662 |
|
|
| 4,528,510 |
|
|
| 4,228,605 |
|
Brokered certificates of deposit |
| 735,993 |
|
|
| 736,377 |
|
|
| 724,788 |
|
|
| 721,977 |
|
|
| 762,499 |
|
Other certificates of deposit |
| 959,191 |
|
|
| 967,423 |
|
|
| 964,892 |
|
|
| 947,406 |
|
|
| 888,674 |
|
Total deposit portfolio | $ | 15,126,964 |
|
| $ | 14,502,551 |
|
| $ | 14,524,397 |
|
| $ | 14,609,342 |
|
| $ | 13,567,912 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Noninterest-bearing deposits to total deposits |
| 33.3 | % |
|
| 33.9 | % |
|
| 33.2 | % |
|
| 33.4 | % |
|
| 32.3 | % |
Quarterly cost of deposits |
| 1.54 | % |
|
| 1.53 | % |
|
| 1.52 | % |
|
| 1.64 | % |
|
| 1.80 | % |
Total deposits at September 30, 2026 were $15.1 billion, an increase of $624.4 million and $1.6 billion from the linked and prior year quarters, respectively. Average deposits for the three months ended September 30, 2026 were $15.0 billion, compared to $14.6 billion and $13.6 billion for the three months ended June 30, 2026 and September 30, 2025, respectively. Reciprocal deposits, which are placed through third party programs to provide FDIC insurance on larger deposit relationships, totaled $1.
Contacts
For more information contact:
Investor Relations
Keene Turner, Senior Executive Vice President, CFO and COO (314) 512-7233
Dakota Danescu, Senior Investor Relations Analyst (314) 810-3623
Media
Steve Richardson, Senior Vice President, Corporate Communications (314) 995-5695
Read full story here
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