En­ter­prise Fi­nan­cial Ser­vices earn­ings up

The Pak Banker - - Front Page -

ST. LOUIS

En­ter­prise Fi­nan­cial Ser­vices Corp re­ported net in­come of $7.9 mil­lion for the quar­ter ended Septem­ber 30, 2012, a 36% in­crease, com­pared to net in­come of $5.8 mil­lion for the prior year pe­riod. Af­ter de­duct­ing div­i­dends on pre­ferred stock, the Com­pany re­ported net in­come of $0.39 per di­luted share for the third quar­ter of 2012, a 34% in­crease, com­pared to net in­come of $0.29 per di­luted share for the third quar­ter of 2011.

Peter Benoist, Pres­i­dent and CEO, com­mented, “The pos­i­tive trends in our core busi­ness gained mo­men­tum through the third quar­ter. The Com­pany con­tin­ues to demon­strate its abil­ity to grow loans or­gan­i­cally, with par­tic­u­lar strength in Com­mer­cial & In­dus­trial (“C&I”) loans, which have in­creased to 44% of our port­fo­lio. This growth is di­verse and broad-based, gen­er­ated by our tra­di­tion­ally ef­fec­tive sales ef­forts, suc­cess­ful re­cruit­ing ini­tia­tives, niche lend­ing pro­grams and our new com­mer­cial fi­nance unit.” “The quar­ter was also marked by sub­stan­tial progress in im­prov­ing as­set qual­ity, noted Benoist. “We re­duced non­per­form­ing loans by 21% and Non­cov­ered Other real es­tate by 28% in the third quar­ter alone. Our non­per­form­ing as­set ra­tio has now dropped to 1.40%. We an­tic­i­pate a fur­ther re­duc­tion in non­per­form­ing as­sets in the fourth quar­ter, which will likely be ac­com­pa­nied by higher re­ported loan losses and losses on sale of Other real es­tate.”

Benoist con­tin­ued, “Our FDIC ac­qui­si­tions again con­trib­uted sig­nif­i­cantly to our earn­ings re­sults and cap­i­tal ac­count, pro­duc­ing an­other $6.6 mil­lion in net rev­enue in the quar­ter. This in­cluded the ef­fect of an in­creased pro­vi­sion ex­pense of $11 mil­lion for cov­ered as­sets. Our loss share pro­tec­tion re­duced the net im­pact to $2.2 mil­lion, which was more than off­set by in­creased ac­cre­tion and ac­cel­er­ated loan pay­ments. Since our first FDIC ac­qui­si­tion in De­cem­ber 2009, cov­ered as­sets have added al­most $60 mil­lion in net rev­enue to En­ter­prise.”

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