Enterprise Financial to Restate 2010 and 2011 Financial Statements
January 25 2012 - 5:15PM
Enterprise Financial Services Corp (Nasdaq:EFSC) announced that it
will restate its financial statements for the year ended December
31, 2010 and for the first three quarters of 2011 and 2010. The
Company discovered an accounting error that resulted in an
inadvertent overstatement of income on loans covered by FDIC loss
share agreements during those periods. The Company has
concluded that the Company's financial statements, report on
internal controls and the reports thereon of Deloitte & Touche
LLP, the Company's independent registered public accounting firm
included in its Annual Report on Form 10-K as of and for the year
ended December 31, 2010 and the interim financial statements
included in its Quarterly Reports on Form 10-Q as of and for each
of the periods ended March 31, June 30, and September 30, for
2010 and 2011, respectively, should no longer be relied upon. As a
result of the restatement, based on current estimates, the Company
expects diluted earnings per share for 2010 to be between $0.20 and
$0.25, compared to the originally reported earnings per share of
$0.45. For the nine months ended September 30, 2011, the Company
had previously reported net income of $24.8 million, or $1.46 per
diluted share. After restating those results, based on current
estimates, the Company expects to report net income of between
$0.98 and $1.15 per diluted share for the period ending September
30, 2011 and between $1.20 and $1.35 per share for the year ended
December 31, 2011. The Company will not release its 2011
fourth quarter and year-end results or conduct its quarterly
conference call on Thursday, January 26. A rescheduled date
will be announced. Based on current estimates, the Company expects
that it and its principal subsidiary, Enterprise Bank & Trust,
both will remain "well-capitalized" under all regulatory
definitions. Peter Benoist, President and CEO, said, "The
accounting error we discovered was specific to the calculation of
income on covered assets. We do not believe the error involved
any part of our core banking business; the Bank's previously
reported favorable trends in improved asset quality and solid
organic growth in commercial loans and core deposits are
unchanged." Benoist added, "Even at the revised level of income on
covered loans, we expect that our FDIC acquisitions remain
accretive to 2010 and 2011 earnings per share and we expect them to
contribute to 2012 earnings. Also, the strategic value that we
gained from those acquisitions in expanding our Phoenix and Kansas
City franchises is undiminished." Enterprise Financial operates
commercial banking and wealth management businesses in metropolitan
St. Louis, Kansas City and Phoenix. Enterprise is primarily
focused on serving the needs of privately held businesses, their
owner families, executives and professionals. We caution
Readers that, whether or not expressly stated, all measures of
results of operations and financial condition contained in this
press release are preliminary and reflect only our expected results
of operations and financial condition as of and for the respective
periods referenced following the restatement. Actual reported
results of operations and financial condition as a result of the
restatement may vary from those expectations due to a number of
factors, including additional or revised information or subsequent
events. Readers should note that in addition to the historical
information contained herein, this press release contains
forward-looking statements, which are inherently subject to risks
and uncertainties that could cause actual results to differ
materially from those contemplated from such statements. We
use the words "will," "likely," "anticipate," "expect" and "intend"
and variations of such words and similar expressions in this
communication to identify such forward-looking
statements. Factors that could cause or contribute to such
differences include, but are not limited to, burdens imposed by
federal and state regulations of banks, credit risk, changes in the
appraised valuation of real estate securing impaired loans,
outcomes of litigation and other contingencies, exposure to local
and national economic conditions, risks associated with rapid
increase or decrease in prevailing interest rates, effects of
mergers and acquisitions, effects of critical accounting policies
and judgments, legal and regulatory developments and competition
from banks and other financial institutions, as well as other risk
factors described in the Annual Report on Form 10-K for the year
ended December 31, 2010 and in the Quarterly Reports on Form 10-Q
filed subsequent thereto. Forward-looking statements speak
only as of the date they are made, and the Company undertakes no
obligation to update them in light of new information or future
events unless required under the federal securities laws.
CONTACT: Jerry Mueller, Senior Vice President (314) 512-7251
Ann Marie Mayuga, AMM Communications (314) 485-9499
Enterprise Financial Ser... (NASDAQ:EFSC)
Historical Stock Chart
From May 2024 to Jun 2024
Enterprise Financial Ser... (NASDAQ:EFSC)
Historical Stock Chart
From Jun 2023 to Jun 2024