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Earnings Per Share (EPS): $1.28 per diluted share for Q4 2024, compared to $1.32 in the previous quarter and $1.16 in Q4 2023.
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Adjusted Return on Assets: 1.31% for Q4 2024.
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Pre-Provision Return on Assets: 1.80% for Q4 2024.
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Net Interest Margin: Remained above 4% and was essentially flat compared to the previous quarter.
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Loan Growth: $140 million increase in Q4 2024, or 5% annualized.
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Client Deposits Growth: Increased by $677 million in Q4 2024.
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Cost of Deposits: Declined to 2% in Q4 2024.
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Tangible Common Equity to Tangible Assets Ratio: 9.05% at the end of Q4 2024.
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Adjusted Return on Tangible Common Equity: 14.05% for Q4 2024.
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Tangible Book Value Per Common Share: $37.27 at the end of Q4 2024.
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Net Income for Full Year 2024: $185.3 million.
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Full Year 2024 EPS: $4.83 per diluted share.
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Pre-Provision Net Revenue for Full Year 2024: Over $255 million.
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Allowance for Credit Losses: 1.34% of unguaranteed total loans.
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Net Charge-Offs: 16 basis points for the full year 2024.
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Nonperforming Assets to Total Assets: 30 basis points at the end of Q4 2024.
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Dividend Increase: Increased by $0.01 per share to $0.29 for Q1 2025.
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Share Repurchases: $11 million returned to shareholders through common stock repurchases in Q4 2024.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Enterprise Financial Services Corp (NASDAQ:EFSC) reported strong financial performance for the fourth quarter of 2024, with earnings per diluted share of $1.28, up from $1.16 in the same quarter of 2023.
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The company achieved an adjusted return on assets of 1.31% and a pre-provision return on assets of 1.80%, indicating efficient asset utilization.
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EFSC experienced significant growth in client deposits, with an increase of $677 million in the fourth quarter, marking the fifth quarter of growth in the last six.
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The company’s diversified business model contributed to an expansion in net interest income while maintaining a net interest margin above 4%.
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EFSC’s capital levels remained strong, with a tangible common equity to tangible assets ratio of 9.05% and a 14.05% adjusted return on tangible common equity for the fourth quarter.
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Loan demand has not yet translated into significant growth, with only a slight increase of $140 million or 5% on an annualized basis in the fourth quarter.
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Nonperforming assets increased slightly to 30 basis points of total assets, up from 22 basis points in the previous quarter.
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The company experienced a decline in loan income of $3.9 million due to lower Fed funds, prime, and SOFR rates.
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Net charge-offs increased to $7.1 million for the quarter, reflecting some deterioration in credit quality.
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The allowance for credit losses increased due to loan growth and higher net charge-offs, indicating potential future credit risks.
