Tag Archives: net income

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Enterprise Financial net income jumps 26%

Enterprise Financial Services Corp. reported net income of $11.0 million  for the quarter ended June 30, 2013, an increase of 26% compared to net income of $8.8 million for the prior year period.  Net income per diluted share was $0.58 for the second quarter of 2013, an increase of 32% compared to $0.44 per diluted share for the second quarter of 2012.

Peter Benoist, President and CEO, commented, “Second quarter results reflect continuing favorable performance trends. Earnings per share rose 32% over the prior year quarter, following a 71% year-over-year gain in the first quarter. At midyear, the Company is generating strong profitability, producing an annualized return on assets of 1.35% and return on common equity of 17.34%.”

“Earnings gains in the quarter were driven by further improvement in asset quality, resulting in a $4.3 million net loan loss provision benefit on our non-covered loans“, continued Benoist. “Our nonperforming asset and nonperforming loan ratios have been reduced to roughly their levels in 2008 and, while we may still see some volatility in these metrics, the general trends remain favorable. Our risk assessment processes have led to commensurate reductions in loan loss reserves, although reserves continue to cover more than 100% of our nonperforming loans.”

“While price competition for quality C&I loans remains intense, we’re adhering to our pricing discipline. We’re pleased that we were able to maintain our core net interest margin in the second quarter and still produce growth in C&I loans consistent with our mid-single digit annual growth expectation. We’ll continue to trade off volume for profitability as appropriate to create shareholder value.”

Benoist added, “Covered assets again contributed materially to our earnings. Net revenues from FDIC loss share assets totaled $6.6 million in the second quarter, bringing the total net revenue contribution life to date from those assets to more than $82 million.”

A Guide to Applying for a Bank Loan

Enterprise posts strong quarterly earnings

Enterprise Financial Services Corp. reported net income of $10 million for the quarter ended March 31, 2013, compared with net income of $6.2 million for the prior year period. Net income per diluted share was $0.53 for the first quarter of 2013, compared with $0.31 per diluted share for the first quarter of 2012. Higher net interest income as well as a reduction in non-interest expenses drove the increase in net income.

Peter Benoist, president and CEO, commented, “Enterprise posted strong earnings for the quarter, with solid results from our core banking operations, as well as our covered asset portfolios. Compared to a year ago, organic C&I loan balances grew 20% while nonperforming assets declined 41%. Over the same period, key components of our noninterest income increased steadily, with wealth management revenues rising 14% and service charges up 15%. The pending acquisition of Gorman & Gorman Home Loans will expand our mortgage business and related fee income opportunities.”

“Net revenues from our FDIC loss share assets continue to add meaningfully to our results,” noted Benoist. “Covered assets produced $8.7 million in net revenue in the first quarter and have generated $75.8 million since we completed our first FDIC-assisted transaction a little more than three years ago.”

Benoist added, “We positioned the company for further growth with several new management assignments during the quarter. Scott Goodman was named president of Enterprise Bank & Trust, partnering with Steve Marsh to drive the Bank’s earnings growth as the economy continues to improve. In addition, several other executives were appointed to leadership roles in the Bank’s Arizona and Kansas City Regions. These promotions reflect the strength of our team and the company’s ability to deploy talent effectively to capitalize on market opportunities.”


Apollo quarterly profit beats predictions

For-profit education company Apollo Group Inc. said Monday its fiscal second-quarter net income tumbled 79 percent, hurt by a drop in enrollment, but the results beat Wall Street predictions and Apollo shares jumped 7 percent in premarket trading.

For the quarter ended Feb. 28, the University of Phoenix parent company earned $13.5 million, or 12 cents per share, down from $63.9 million, or 51 cents per share, in the same quarter last year. Excluding restructuring charges and other one-time items, the company said its adjusted profit was 34 cents per share.

Revenue dropped 13 percent to $838.4 million, from $962.7 million in the year-ago period.

Analysts, on average, expected a profit of 19 cents per share, on $824.9 million in revenue, according to FactSet.

Apollo attributed the drop in profit to lower enrollment and higher marketing costs, which were partially offset by lower restructuring and bad-debt costs. Enrollment at the University of Phoenix fell more than 15 percent to 300,800, while new degreed enrollment dropped 20 percent to 38,900.

Apollo projected fiscal 2013 revenue of $3.65 billion to $3.75 billion, while analysts expect $3.73 billion.

The for-profit education industry enjoyed a big boom when the recession first hit, but student demand has faded. In addition, increased criticism of the schools, new federal regulations and the still-struggling economy have weighed on enrollments.

The drop in enrollment has dented Apollo’s profits, and the company said in October that it was closing 115 of its smaller locations to cope with lower enrollment and plunging profits.

Apollo shares rose $1.22, or 7.2 percent, to $18.26 in premarket trading.