8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)
July 18, 2006

ENTERPRISE FINANCIAL SERVICES CORP

(Exact name of registrant as specified in its charter)

Delaware	001-15373	43-1706259
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
150 N. Meramec, St. Louis, Missouri		63105
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code
(314) 725-5500
Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4© under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 9.01 Financial Statements and Exhibits

(d)          Exhibits

Exhibit No.	Description
99.1	Press Release dated July 18, 2006

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 18, 2006, Registrant issued a press release announcing financial information for its  second quarter ended June 30, 2006. The press release is attached hereto as Exhibit 99.1 and is  furnished to, but not filed with, the Commission.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

Date: July 19, 2006
	ENTERPRISE FINANCIAL SERVICES CORP
	/s/ Kevin C. Eichner
	Kevin C. Eichner
	Chief Executive Officer

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press Release dated July 18, 2006*

*This exhibit is furnished to, but not filed with, the Commission by inclusion herein.

EX-99.1

Exhibit 99.1

For more information, contact:
Kevin Eichner (414) 725 5500
Frank Sanfilippo (314) 725 5500
Melissa Sturges (816) 221 7500

ENTERPRISE FINANCIAL REPORTS 24% INCREASE IN SECOND QUARTER  EARNINGS PER SHARE

• Portfolio Loans Increase $107 Million Year-to-Date (21% annualized)

• Wealth Management Revenue Rises 120% Over Prior Year

• Efficiency Ratio Improves Nearly 400 Basis Points

• Margin Widens to 4.11%

• Company Reports 20%+ EPS Growth For 13 Of The Past 16 Quarters

St. Louis, July 18, 2006 – Enterprise Financial Services Corp (NASDAQ: EFSC), the parent  company of Enterprise Bank & Trust, reported net income of $3.9 million or $0.36 per fully  diluted share for the second quarter of 2006 versus $3.1 million or $0.29 per fully diluted  share in the same quarter of 2005---a 24% increase. For the six months ended June 30,  2006, the Company reported net income of $6.9 million or $0.64 per fully diluted share  versus $5.6 million or $0.53 per fully diluted share for the same period in 2005---a 21%  increase.

“We were pleased with our continued growth momentum in both lines of business”, said  Kevin Eichner, Enterprise Financial President and CEO. “Our strategy of integrating first- quality banking services with exceptional wealth management for our business owner  clientele continues to pay major dividends for our shareholders. Our team is particularly  proud that this quarter represents the thirteenth out of the past sixteen in which we have  reported 20% or better EPS growth rates.”

BANKING LINE OF BUSINESS

Bank net interest income increased $1.4 million or 12% in the second quarter of 2006 versus  the same quarter in 2005. At quarter end, portfolio loans were up $43 million from the prior  quarter and up $107 million from December 31, 2005 or 21% annualized year to date. 

Total deposits grew $34 million during the quarter or an annualized rate of 13%. The bank’s  mix remains very favorable with demand deposit accounts representing 18% of the total in  an increasingly competitive deposit rate environment.

The tax-equivalent net interest rate margin increased to 4.11% during the second quarter  compared to 3.99% in the first quarter of 2006. The second quarter margin was slightly  lower than the 4.18% reported in the second quarter of 2005, with the decline from 2005  primarily due to a refinement in the company’s accounting for loan fees and direct origination costs, as previously reported, partially offset by the increased net benefit of shareholders’ equity and noninterest-bearing deposits.

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Asset quality remained outstanding. Net charge-offs for the quarter were $251,000 or 0.09%  to average loans (annualized). On a year to date basis, net charge-offs totaled $77,000 or  0.01% annualized. For the second quarter, provision for loan losses was $737,000,  compared to $226,000 in the same quarter last year. The increase in provision was due to  significant loan growth during the quarter versus declining loan balances in the prior year  same period. Non-performing loan levels were very healthy in both periods at less than  0.23% of total loans. The allowance for loan losses represented 1.30% of portfolio loans at  June 30, 2006 versus 1.30% at year-end and 1.33% a year ago.

A rising earnings credit rate on commercial accounts kept deposit service charges flat in the  second quarter as compared to the same quarter in 2005.

WEALTH MANAGEMENT LINE OF BUSINESS

Wealth Management revenue during the quarter was up 120% over the prior year, driven by  $1.5 million of revenue from Millennium Brokerage Group LLC (“Millennium”) acquired in  October 2005, and a 16% organic increase in revenues from the Enterprise Trust business.  The Company’s ratio of fee income to total revenue was 25% versus 16% in the same period  of 2005 as the Wealth Management segment continues to expand rapidly in line with the  Company’s income diversification strategies.

Wealth Management assets under administration were $1.54 billion at June 30, 2006, a 25%  increase over one year ago after adjusting for the $250 million in common trust fund assets  that were distributed in December 2005 in accordance with a related contract. Notably, the  Company’s trust advisory business established in the Kansas City market just two years ago  crossed the $200 million asset mark there, demonstrating strong performance by that new  business unit.

The slow turn-around times on Millennium life insurance cases submitted to certain core  carriers noted in our first quarter results release have eased slightly, but remain a challenge.  Millennium reports, however, that its sales pipeline continues to grow, portending stronger  second half revenues in relation to the first half of 2006.

In line with the Company’s definitive contractual agreement, Enterprise recognized its  23.1% priority return by adjusting the minority interest in net income of its consolidated  Millennium subsidiary by approximately $457,000 during the quarter. This brings the pre- tax profit contribution (including interest and amortization of intangibles) of the Millennium  unit to $1.0 million in the first half of 2006 and on pace with expectations.

OTHER BUSINESS RESULTS

The Company’s efficiency ratio improved from 62% in the second quarter of 2005 to 58% in  the same quarter of 2006. Non-interest expenses increased from $8.2 million in the second  quarter of 2005 to $9.3 million in the same quarter of 2006. Approximately $776,000 of this  increase was related to the addition of Millennium (including the amortization of  intangibles). The remainder was primarily connected with expenses associated with  increases in technology and talent as the Company builds out its distribution platforms.

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“Enterprise’s organic growth rate is the principal driver in our valuation, but we are just now  beginning to see the additive effects of our Millennium and NorthStar acquisitions,” continued Eichner. “We believe we have established an outstanding team which is operating  on an increasingly powerful and productive financial services platform. The NorthStar  acquisition has already allowed us to bring in some exciting new talent in Kansas City, and  Millennium is opening up some new opportunities in our Trust Company in addition to its  financial contributions. We continue to position EFSC as a high growth, high performing  investment opportunity in the small cap financial services space,” he commented.

Enterprise Financial operates commercial banking and wealth management businesses  mostly in metropolitan St. Louis and Kansas City, with a primary focus on serving the needs  of privately held businesses, their owners and other success-minded individuals.

Please refer to the Consolidated Financial Summary attached for more details.

# # #

Readers should note that in addition to the historical information contained herein, this press  release may contain 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. 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,  exposure to local economic conditions, risks associated with rapid increase or decrease in  prevailing interest rates and competition from banks and other financial institutions, as well  as those in Enterprise Financial’s 2005 Annual Report on Form 10-K.

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ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY
(unaudited)

($ In thousands, except per share data)

	For the Quarter Ended June 30,						For the Six Months Ended June 30,
INCOME STATEMENTS	2006			2005			2006			2005
Total interest income	$	21,659		$	16,232		$	41,088		$	30,886
Total interest expense		9,517			5,230			17,689			9,361
Net interest income		12,142			11,002			23,399			21,525
Provision for loan loss		737			226			1,537			1,012
Net interest income after provision for loan losses		11,405			10,776			21,862			20,513
NONINTEREST INCOME
Wealth Management revenue		3,231			1,471			6,549			2,684
Deposit service charges		532			537			1,033			1,020
Gain on sale of mortgage loans		48			80			71			102
Other income		141			137			276			256
Total noninterest income		3,952			2,225			7,929			4,062
NONINTEREST EXPENSE
Salaries and benefits		5,843			5,402			11,643			10,600
Occupancy		608			554			1,219			1,084
Furniture and equipment		239			188			490			360
Other		2,630			2,027			5,262			3,845
Total noninterest expense		9,320			8,171			18,614			15,889
Minority interest in net income of consolidated subsidiary		60			—			(393	)		—
Income before income tax		6,097			4,830			10,784			8,686
Income taxes		2,196			1,689			3,885			3,098
Net income	$	3,901		$	3,141		$	6,899		$	5,588
Basic earnings per share	$	0.37		$	0.31		$	0.66		$	0.56
Diluted earnings per share	$	0.36		$	0.29		$	0.64		$	0.53
Return on average assets		1.23	%		1.13	%		1.11	%		1.03	%
Return on average equity		16.00	%		16.01	%		14.48	%		14.66	%
Net interest rate margin (fully tax equivalized)		4.11	%		4.18	%		4.05	%		4.18	%
Yield on earning assets (fully tax equivalized)		7.29	%		6.14	%		7.06	%		5.97	%
Cost of paying liabilities		3.93	%		2.53	%		3.74	%		2.31	%
Net interest spread		3.36	%		3.61	%		3.32	%		3.66	%
Efficiency ratio		57.91	%		61.78	%		59.42	%		62.10	%
Noninterest expense to average assets		2.93	%		2.94	%		2.99	%		2.93	%

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ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)

($ in thousands)

BALANCE SHEETS	Jun 30, 2006		Mar 31, 2006		Dec 31, 2005		Sep 30, 2005		Jun 30, 2005
ASSETS
Cash and due from banks	$	50,063	$	42,597	$	54,118	$	38,542	$	35,156
Federal funds sold		3,034		6,027		64,709		45,281		43,149
Interest-bearing deposits		607		104		84		101		94
Debt and equity investments		109,449		110,333		135,559		96,684		89,193
Loans held for sale		3,028		2,447		2,761		2,273		3,996
Portfolio loans		1,108,906		1,066,084		1,002,379		976,804		958,878
Less allowance for loan losses		14,449		13,964		12,990		13,168		12,769
Net loans		1,094,457		1,052,120		989,389		963,636		946,109
Premises and equipment, net		13,941		13,624		10,276		10,098		9,556
Goodwill		12,004		12,004		12,042		1,938		1,938
Other assets		19,653		18,828		18,030		11,289		11,331
Total assets	$	1,306,236	$	1,258,084	$	1,286,968	$	1,169,842	$	1,140,522
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	195,719	$	192,997	$	229,325	$	206,724	$	199,136
Interest bearing deposits		879,995		848,633		886,919		816,241		796,548
Total deposits		1,075,714		1,041,630		1,116,244		1,022,965		995,684
Subordinated debentures		30,930		30,930		30,930		20,620		20,620
FHLB advances		88,653		75,068		28,584		28,749		30,564
Other borrowings		4,810		7,221		8,347		6,975		7,230
Other liabilities		6,932		7,729		10,258		7,036		5,984
Total liabilities		1,207,039		1,162,578		1,194,363		1,086,345		1,060,082
Shareholders’ equity		99,197		95,506		92,605		83,497		80,440
Total liabilities and shareholders’ equity	$	1,306,236	$	1,258,084	$	1,286,968	$	1,169,842	$	1,140,522

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ENTERPRISE FINANCIAL SERVICES CORP
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(unaudited)

($ In thousands, except per share data)

		For the Quarter Ended
	Jun 30, 2006			Mar 31, 2006			Dec 31, 2005			Sep 30, 2005			Jun 30, 2005
EARNINGS SUMMARY
Net interest income	$	12,142		$	11,257		$	11,883		$	11,159		$	11,002
Provision for loan losses		737			800			70			408			226
Wealth Mangement revenue		3,231			3,319			2,370			1,472			1,471
Noninterest income		721			658			258			805			754
Noninterest expense		9,320			9,294			9,910			8,525			8,171
Minority interest in net income of consolidated subsidiary		60			(453	)		(113	)		—			—
Income before income tax		6,097			4,687			4,418			4,503			4,830
Net income		3,901			2,998			2,829			2,878			3,141
Diluted earnings per share	$	0.36		$	0.28		$	0.26		$	0.27		$	0.29
Return on average equity		16.00	%		12.89	%		12.52	%		13.84	%		16.01	%
Net interest rate margin (fully tax equivalized)		4.11	%		3.99	%		4.06	%		4.03	%		4.19	%
Efficiency ratio		57.91	%		61.01	%		68.28	%		63.45	%		61.78	%
MARKET DATA
Book value per share	$	9.44		$	9.13		$	8.85		$	8.26		$	8.00
Tangible book value per share	$	7.91		$	7.57		$	7.27		$	8.07		$	7.81
Market value per share	$	25.45		$	27.39		$	22.68		$	21.22		$	23.65
Period end common shares		10,508			10,466			10,459			10,111			10,056
Average basic common shares		10,490			10,465			10,357			10,083			10,046
Average diluted common shares		10,876			10,856			10,983			10,782			10,676
ASSET QUALITY
Net charge-offs (recoveries)	$	251		$	(174	)	$	248		$	10		$	96
Nonperforming loans	$	893		$	1,353		$	1,421		$	1,777		$	2,136
Nonperforming loans to total loans		0.08	%		0.13	%		0.14	%		0.18	%		0.22	%
Allowance for loan losses to total loans		1.30	%		1.31	%		1.30	%		1.35	%		1.33	%
Net charge-offs (recoveries) to average loans (annualized)		0.09	%		(0.07%	)		0.10	%		0.00	%		0.04	%
CAPITAL
Average equity to average assets		7.66	%		7.63	%		7.20	%		7.12	%		7.07	%
Tier 1 capital to risk-weighted assets		9.87	%		9.87	%		10.31	%		10.33	%		10.14	%
Total capital to risk-weighted assets		11.11	%		11.11	%		11.55	%		11.58	%		11.39	%
AVERAGE BALANCES
Portfolio loans	$	1,079,063		$	1,020,866		$	979,182		$	968,802		$	963,570
Earning assets		1,202,676			1,165,389			1,181,273			1,114,508			1,067,366
Total assets		1,276,878			1,235,691			1,244,652			1,159,341			1,113,075
Deposits		1,044,498			1,060,035			1,080,525			1,012,070			942,466
Shareholders’ equity		97,786			94,338			89,641			82,495			78,701
LOAN PORTFOLIO
Commercial and industrial	$	323,109		$	299,706		$	265,488		$	263,286		$	264,451
Commercial real estate		438,684			428,696			410,382			363,566			352,005
Construction real estate		162,589			155,361			138,318			128,444			134,459
Residential real estate		148,650			144,228			151,575			177,948			168,315
Consumer and other		35,874			38,093			36,616			43,559			39,649
Total loan portfolio	$	1,108,906		$	1,066,084		$	1,002,379		$	976,804		$	958,878
DEPOSIT PORTFOLIO
Noninterest-bearing accounts	$	195,719		$	192,997		$	229,325		$	206,724		$	199,136
Interest-bearing transaction accounts		99,887			108,699			108,712			85,824			86,815
Money market and savings accounts		471,526			472,247			483,186			450,107			449,793
Certificates of deposit		308,582			267,687			295,021			280,310			259,940
Total deposit portfolio	$	1,075,714		$	1,041,630		$	1,116,244		$	1,022,965		$	995,684
WEALTH MANAGEMENT
Trust Assets Under Management	$	983,365		$	976,425		$	819,608		$	975,704		$	924,817
Trust Assets Under Administration		1,536,437			1,563,394			1,388,480			1,541,597			1,476,216

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