Enterprise Financial Services earnings up
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.”