July 24--Enterprise Financial Services Corp.'s second quarter profit fell 35 percent as its provision for loan losses grew.
The Clayton-based bank holding company for Enterprise Bank & Trust reported a $7.2 million profit for the quarter that ended June 30, or 36 cents a share, down from a $5.8 million profit, or 30 cents a share, a year earlier.
Enterprise reported a $4.3 million reversal of its provision for loan losses compared with a year earlier, leading to the decline in profit, in addition to a $2.4 million reduction in net revenue from purchase credit impaired loans, the bank said in a statement.
The bank grew its loans during the second quarter, driven by gains in commercial and industrial lending. "The second quarter was notable for accelerated loan growth, particularly with respect to C&I loans," president and CEO Peter Benoist said in the statement. "On an annualized basis, total loans grew 13 perecent, demonstrating our success in gaining market share. The growth in our loan portfolio was strong enough to overcome the ongoing pressure on margin and produce a modest increase in core net interest income."
Lisa Brown is a business reporter at the Post-Dispatch. Follow her on Twitter @LisaBrownSTL and the Business section @postdispatchbiz.
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