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Regional banking company Enterprise Financial Services (NASDAQ:EFSC) in Q2 CY2026 as sales rose 3.5% year on year to $182.2 million. Its non-GAAP profit of $1.13 per share was 15.8% below 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) Q2 CY2026 Highlights:
・Net Interest Income: $168.7 million vs analyst estimates of $168.6 million (10.4% year-on-year growth, in line)
・Net Interest Margin: 4.3% vs analyst estimates of 4.2% (5.4 basis point beat)
・Revenue: $182.2 million vs analyst estimates of $189.8 million (3.5% year-on-year growth, 4% miss)
・Efficiency Ratio: 63.5% vs analyst estimates of 61.2% (227.6 basis point miss)
・Adjusted EPS: $1.13 vs analyst expectations of $1.34 (15.8% miss)
・Tangible Book Value per Share: $42.30 vs analyst estimates of $42.34 (5.7% year-on-year growth, in line)
・Market Capitalization: $2.40 billion
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
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Over the last five years, Enterprise Financial Services grew its revenue at an impressive 15.3% compounded annual growth rate. 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 8.1% over the last two years was well below its five-year trend.
Note: Quarters not shown were determined to be outliers because they were 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 3.5% year on year to $182.2 million, falling short of Wall Street’s estimates.
Net interest income made up 87.7% 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.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Enterprise Financial Services’s TBVPS grew at an exceptional 9.5% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 9.9% annually from $35.02 to $42.30 per share.
Over the next 12 months, Consensus estimates call for Enterprise Financial Services’s TBVPS to grow by 10.4% to $46.69, mediocre growth rate.
Key Takeaways from Enterprise Financial Services’s Q2 Results
We struggled to find many positives in these results. Its revenue missed and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $65.69 immediately following the results.
The latest quarter from Enterprise Financial Services’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
