Business
Enterprise Financial Reports Second Quarter 2020 Results
Second Quarter Results Net income of $14.6 million, $0.56 per diluted share, including the impact of provision for credit losses of $0.56 per share Net
About this update from Enterprise Financial Services Corporation
[{"type":"text","content":"\nSecond Quarter Results\n\n\n\nNet income of $14.6 million, $0.56 per diluted share, including the impact of provision for credit losses of $0.56 per share\n\n\nNet interest margin (tax equivalent) of 3.53%\n\n\nReturn on average assets of 0.72%\n\n\nMaintained dividend of $0.18 per share for third quarter \n\n\n\n \n\n ST. LOUIS, Mo.--(BUSINESS WIRE)--\nEnterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”) reported net income of $14.6 million for the second quarter 2020, an increase of $1.8 million compared to the linked first quarter (“linked quarter”) and a decrease of $3.8 million from the prior year quarter. Earnings per diluted share (“EPS”) was $0.56 for the second quarter 2020, compared to $0.48 and $0.68 for the linked and prior year quarters, respectively. Net income and EPS in the current quarter increased from the linked quarter primarily due to interest income on the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loans and a reduction in provision for credit losses partially offset by a reduction in tax credit income. The decrease in net income and EPS from the prior year quarter was primarily due to an increase in provision for credit losses partially offset by merger-related expenses incurred in the prior year period.\n\n\nThe provision for credit losses was $19.6 million for the second quarter 2020, compared to $22.3 million for the linked quarter and $1.7 million for the prior year quarter. The decline in the underlying economic forecast used for estimating the allowance for credit losses was the primary driver of both the first and second quarter provision for credit losses. For the second quarter 2020, the forecast model reflected continued deterioration in unemployment, GDP, and the CRE index while extending the estimated recovery period.\n\n\nJim Lally, EFSC’s President and Chief Executive Officer, commented, “We are operating in a challenging environment and remain committed to the health and well-being of our employees and customers. We have diligently worked with our customers on PPP and loan structuring and continue to be a supportive financial partner for our customers and communities. As we continue to focus on the Company’s long-term success, we believe the strength of our pre-provision earnings creates a strong foundation for that success. We increase...