Stephen Rosenman
Long/short equity, deep value, special situations

Enterprise Financial Services Corp.: As Its FDIC-Assisted Portfolio Runs Off, The Bank Needs An Act II

Ambitious banks with strong balance sheets like Bank of the Ozarks (NASDAQ:OZRK), Home Bancshares (NASDAQ:HOMB), and Bank of North Carolina (NASDAQ:BNCN) secured sweetheart deals from the FDIC, taking over the branches and assets of under capitalized financials caught by the Great Recession's housing debacle. Missouri-based Enterprise Financial Services Corp. (NASDAQ:EFSC) also took advantage of the economic collapse, making 4 FDIC-assisted failed bank purchases from 2009 to 2011. Through those transactions, Enterprise acquired $953 million of assets and broadened its footprint into Arizona and Kansas. Its purchased credit impaired loan portfolio (known as PCI) has been immensely successful, ramping at one point to ridiculous 31% yields. The PCI has been a critical boost...

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