Enterprise Financial Services Corporation (EFSC) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone, thank you for joining us and welcome to the Enterprise Financial Services Corp 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Jim Lally, President and CEO. Please go ahead. Thank you all very much for joining us this morning and welcome to our 2026 second quarter earnings call. Joining me this morning is Keene Turner, EFSC's Chief Financial Officer and Chief Operating Officer, and Doug Bauche, Chief Banking Officer of Enterprise Bank and Trust. Before we begin, I would like to remind everybody on the call that a copy of the release and accompanying presentation can be found on our website. The presentation and earnings release were furnished on SCC form 8K yesterday. Please refer to slide two of the presentation titled, Forward Looking Statements, and our most recent 10K for reasons why actual results may vary from any forward-looking statements that we make today. Our financial scorecard begins on slide three. For the quarter, we earned $41 million or $1.09 per diluted share. This compared to the $1.30 that we earned in the first quarter this year and the $1.36 that we earned during the second quarter of 2025. This level of performance produced a return on average assets of 95 basis points and a pre-provision ROAA of 1.58%. While our core operating performance remained stable, a larger than expected provision expense impacted the operating results for the period. During the quarter, we took the opportunity to reposition our securities portfolio by selling investments with tax equivalent yields in the low threes and reinvesting the ...