EFSC · ENTERPRISE FINAN Q2 FY2026 earnings call record财报电话会记录

“Other balance sheet activity during the quarter included the repurchase of 382,000 shares, the aforementioned balance sheet restructure, and the issuance of $175 million of 6.25% fixed to floating rate subordinated notes.”

“Turning to slide four, you will see that loan balances grew as we expected by $200 million in the quarter.”

“Roughly $7.6 billion, or 65% of total loans, are attributed to our Midwest, Southwest, and West Region community banking markets, while $4.2 billion, or 35%, is from our specialty lending business lines.”

“Previously discussed reductions in our low-income housing tax credit portfolio in Q1 2026 have muted the overall growth in our specialty lending lines to only 3% year-over-year, while our geographic markets have grown 8%, or $570 million year-over-year, inclusive of the loans acquired in the First Interstate branch acquisition in Q4 of 2025.”

“The strength of our commercial base with nearly $5 billion in deposits is well complemented by the granular and diverse nature of our business banking and consumer channels, contributing $4.5 billion in deposits with an attractive 1.25% weighted average cost of funds.”

“Turning to slide 12, we reported earnings per share of $1.09 in the second quarter on net income of $41 million.”

“Interest income increased $4 million from the prior period, including $3 million of loan income and $2 million from investment securities, partially offset by lower earnings on cash balances.”

“While the yield on asset additions and resets has been accretive and the repositioning trade is beneficial, we also expect to see some modest pressure on funding costs with a full quarter of the sub-debt issuance at 6.25% and rates on brokered and wholesale balances moving slightly higher.”

“Our capital management actions in the quarter included the issuance of $175 million of subordinated debentures to bolster total risk-based capital, the repurchase of 382,000 shares of common stock for approximately $23 million, and an increase to the quarterly dividend of $0.01 to $0.35 per share for the third quarter of 2026.”

“It looks like the go forward is that maybe the tail of benefit from the restructure is muted by maybe the sub-debt impact, and then so kind of a wash and then just regular way, a kind of a core margin slight pressure is kind of where you get to the ranges.”

“Yeah, I think really the only material growth that we expect in the back half is maybe just a $1 million to $2 million per quarter step-up in deposit costs running through non-interest expense.”

“Just in terms of the strategic outlook, it sounds like the buyback's just kind of the best use, and it's really an organic focus going forward.”