Enterprise Financial Services Corp. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; Reports Net Charge-Offs for the Third Quarter of 2017; Provides Tax Rate Guidance for the Fourth Quarter of 2017 and Full Year 2018
October 23, 2017 at 04:53 pm EDT
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Enterprise Financial Services Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported total interest income of $52,468,000 against $37,293,000 for the same period a year ago. Net interest income was $45,625,000 against $33,830,000 for the same period a year ago. Income before income tax expense was $24,171,000 against $18,148,000 for the same period a year ago. Net income was $16,315,000 or $0.69 per diluted share against $11,832,000 or $0.59 per diluted share for the same period a year ago. Total core revenue was $52,419,000 against $38,362,000 for the same period a year ago. Core income before income tax expense was $22,927,000 against $15,082,000 for the same period a year ago. Core net income was $15,536,000 or $0.66 per diluted share against $9,940,000 or $0.49 per diluted share for the same period a year ago. Return on average assets was 1.27% against 1.23% for the same period a year ago. Return on average common equity was 11.69% against 12.46% for the same period a year ago. Non-GAAP return on average assets was 1.21% against 1.04% for the same period a year ago. Non-GAAP return on average common equity was 11.13% against 10.47% for the same period a year ago. Core net interest income was $44,491,000 compared to $31,967,000 a year ago. Return on average tangible common equity was 15.23% compared to 13.64% a year ago. Non-GAAP return on average tangible common equity was 14.50% against 11.46% for the same period a year ago.
For the nine months, the company reported total interest income of $147,750,000 against $109,786,000 for the same period a year ago. Net interest income was $129,900,000 against $100,041,000 for the same period a year ago. Income before income tax expense was $59,168,000 against $54,158,000 for the same period a year ago. Net income was $40,661,000 or $1.75 per diluted share against $35,209,000 or $1.74 per diluted share for the same period a year ago. Book value per common share was $23.69 as at September 30, 2017 against $19.07 as at September 30, 2016. Total core revenue was $147,945,000 against $110,278,000 for the same period a year ago. Core income before income tax expense was $60,553,000 against $44,568,000 for the same period a year ago. Core net income was $41,917,000 or $1.81 per diluted share against $29,292,000 or $1.45 per diluted share for the same period a year ago. Return on average assets was 1.11% against 1.26% for the same period a year ago. Return on average common equity was 10.37% against 12.83% for the same period a year ago. Non-GAAP return on average assets was 1.14% against 1.05% for the same period a year ago. Non-GAAP return on average common equity was 10.69% against 10.67% for the same period a year ago. Core net interest income was $126,075,000 compared to $92,676,000 a year ago. Return on average tangible common equity was 13.25% compared to 14.10% a year ago. Non-GAAP return on average tangible common equity was 13.66% against 11.73% for the same period a year ago.
The company reported net charge-offs of $803,000 for the third quarter of 2017 against $1,038,000 for the same period a year ago.
The company expects that in the fourth quarter tax rate will be probably end up somewhere around 32%,
In 2018, tax rate is going to be up there a little bit, 33%, 34%. Company is working hard to manage the tax rate down or relatively stable with increasing pretax. So up a couple of basis points sequentially and then in the 33% to 34% range next year with expectations for growth and earnings, be in pretty good shape.
Enterprise Financial Services Corp is a financial holding company for Enterprise Bank & Trust, which is a full-service financial institution, which offers banking and wealth management services to individuals and corporate customers primarily located in Arizona, California, Kansas, Missouri, Nevada and New Mexico. The Company offers a range of business and personal banking services, including wealth management services provided through Enterprise Trust, a division of Enterprise Bank & Trust. Its lending services include commercial and industrial, commercial real estate, real estate construction and development, residential real estate, small business administration, consumer and other loan products. The Company's lending services include variety of deposit products, including property management and community associations along with a complete suite of treasury management and international trade services for operating businesses. It also offers specialty deposit accounts to customers.
Enterprise Financial Services Corp. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; Reports Net Charge-Offs for the Third Quarter of 2017; Provides Tax Rate Guidance for the Fourth Quarter of 2017 and Full Year 2018