Enterprise Financial reports 12 percent gain in fourth quarter profit

Enterprise Financial Services Corp. said its fourth-quarter profit was up 12 percent to $4.9 million on solid growth in loans and deposits.

Enterprise, the Clayton-based parent of Enterprise Bank, said earnings per share were up 5 percent in the quarter to 39 cents from 37 cents in the last quarter of 2006. Revenue, the sum of net interest income and fee income, was up 20 percent.

For the year, Enterprise’s earnings were up 14 percent to $17.6 million. Per share earnings of $1.40 were up 3 percent. Revenue for the year was up 18 percent to $80.7 million.

Chief Executive Kevin C. Eichner said the banking company “posted solid results for 2007 despite facing some stiff macroeconomic headwinds.”

The provision for loan losses jumped to $2.5 million in the fourth quarter from $350,000 in the last quarter of 2006, but net chargeoffs fell to $611,000 from $1.2 million in the previous year’s quarter. Enterprise said the increase in the provision of loan losses was due to stronger loan growth, an increase in nonperforming loans and adverse risk rating changes in its residential builder portfolio.