Regional banking company Enterprise Financial Services (NASDAQ: EFSC) fell short of the market’s revenue expectations in Q1 CY2026, but sales rose 10% year on year to $185.2 million. Its non-GAAP profit of $1.31 per share was 1% above analysts’ consensus estimates.
Is now the time to buy Enterprise Financial Services? Find out by accessing our full research report, it’s free.
Enterprise Financial Services (EFSC) Q1 CY2026 Highlights:
- Net Interest Income: $166.1 million vs analyst estimates of $164.8 million (12.6% year-on-year growth, 0.8% beat)
- Net Interest Margin: 4.3% vs analyst estimates of 4.2% (7 basis point beat)
- Revenue: $185.2 million vs analyst estimates of $186.5 million (10% year-on-year growth, 0.7% miss)
- Efficiency Ratio: 62.2% vs analyst estimates of 61.6% (63.3 basis point miss)
- Adjusted EPS: $1.31 vs analyst estimates of $1.30 (1% beat)
- Tangible Book Value per Share: $41.38 vs analyst estimates of $42.73 (7.4% year-on-year growth, 3.2% miss)
- Market Capitalization: $2.12 billion
ST. LOUIS--(BUSINESS WIRE)--Jim Lally, President and Chief Executive Officer of Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company” or “EFSC”), commented, “I am proud of how we ended 2025, which was another successful year for the Company.
Company Overview
Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ: EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Thankfully, Enterprise Financial Services’s 16.4% annualized revenue growth over the last five years was excellent. Its growth beat the average banking company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Enterprise Financial Services’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 7.4% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Enterprise Financial Services’s revenue grew by 10% year on year to $185.2 million but fell short of Wall Street’s estimates.
Net interest income made up 87.3% of the company’s total revenue during the last five years, meaning Enterprise Financial Services barely relies on non-interest income to drive its overall growth.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Enterprise Financial Services’s TBVPS grew at an exceptional 9.8% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 10% annually from $34.21 to $41.38 per share.
Over the next 12 months, Consensus estimates call for Enterprise Financial Services’s TBVPS to grow by 14.7% to $47.47, decent growth rate.
Key Takeaways from Enterprise Financial Services’s Q1 Results
It was good to see Enterprise Financial Services narrowly top analysts’ net interest income expectations this quarter. On the other hand, its tangible book value per share missed and its EPS slightly exceeded Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $57.54 immediately after reporting.
Big picture, is Enterprise Financial Services a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
