Enterprise Financial Services addresses $68.4 million in Southern California real estate loans

Enterprise Financial Services Corp (NASDAQ:EFSC) disclosed Thursday that its subsidiary, Enterprise Bank & Trust, holds seven commercial real estate loans totaling $68.4 million with seven special purpose entities in Southern California. These entities are affiliated with two commercial banking relationships that have some common ownership.

The company, which maintains a solid financial health score of "GOOD" according to InvestingPro metrics, reported that each loan is secured by a first position, senior secured mortgage on the real property owned by the respective special purpose entity. Previously, these loans were classified as nonperforming assets. The company stated that litigation arising from a business dispute among the owners led all seven borrowing entities to file for bankruptcy during the first quarter of 2025.

In August, Enterprise Bank & Trust began foreclosure proceedings on the real estate collateral for each borrower. The company noted that, due to its senior secured first lien position on the properties, it expects to collect the full balance of the loans.

This information was provided in response to investor inquiries following a recent peer bank 8-K filing. The disclosure was made in a statement included in a press release and an SEC filing.

Enterprise Financial Services Corp’s common stock and depositary shares are listed on the Nasdaq Global Select Market under the symbols EFSC and EFSCP, respectively.

In other recent news, Enterprise Financial Services Corp reported its second-quarter 2025 earnings, revealing a solid performance. The company posted earnings of $1.36 per diluted share and a net income of $51 million, indicating a slight increase from the previous quarter. This financial outcome underscores the company’s focus on growth and stability, which has been well-received by investors. Additionally, Enterprise Financial Services recently completed the acquisition of twelve branches in Arizona and Kansas, expanding its operations to 54 locations across several states, including Missouri, California, New Mexico, Kansas, Arizona, and Nevada.

In another development, Piper Sandler initiated coverage on Enterprise Financial Services with a Neutral rating and set a price target of $64.00. This coverage follows the company’s strategic expansion efforts. These recent developments highlight Enterprise Financial Services’ ongoing strategic initiatives and financial performance.

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