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Mar 31, 2021
Enterprise Financial Q1 2021 Earnings Report
Enterprise Financial had a solid quarter with earnings of $30 million or 96 cents per share. They also announced the acquisition of First Choice Bank Corp.
Key Takeaways
Enterprise Financial Services Corp reported a strong first quarter with earnings of $30 million, or 96 cents per share. The company also announced the acquisition of First Choice Bank Corp, which will create a $12.7 billion commercial bank.
Earnings per share were 96 cents.
Return on average assets was 1.22%.
Completed the core systems conversion for Seacoast.
Announced the merger of First Choice Bank Corp into EFSC.
Enterprise Financial
Enterprise Financial
Forward Guidance
Enterprise Financial is optimistic about the future and expects continued earnings and balance sheet growth as the economy recovers.
Positive Outlook
- The company expects the tax credit business to recover in the second quarter and gain momentum throughout 2021.
- The company is well-positioned for future economic growth.
- The merger with First Choice is expected to be accretive to earnings per share.
- The company expects to maintain a high capital retention rate.
- The company is focused on maintaining a strong yet efficient capital structure.
Challenges Ahead
- Liquidity within the financial system and a cautious approach to new capital spending by businesses are creating headwinds for organic growth in commercial markets.
- The tax credit business experienced some modest timing delays in the first quarter, as well as some downward valuation on credits that are carried at fair value.
- Elevated unemployment and certain winning sectors are making up for losses in sectors and businesses that could be hard hit by restrictions and slower economic activity.
- PPP and other government efforts to lessen the extent of related impacts have also created additional uncertainty in the company's ability to determine the ultimate outcome and loss content for certain portions of its portfolios.
- Deposits continue to inflate the balance sheet and meet return levels.