ENTERPRISE FINANCIAL SERVICES CORP [EFSC] Filings

10-Q 1 efsc-20240630.htm 10-Q efsc-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q


☒						Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2024.


☐						Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ______ to ______

Commission file number 001-15373

ENTERPRISE FINANCIAL SERVICES CORP

Incorporated in the State of Delaware

I.R.S. Employer Identification # 43-1706259

Address: 150 North Meramec

Clayton, MO 63105

Telephone: (314) 725-5500

___________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

EFSC

Nasdaq Global Select Market

Depositary Shares, each representing a 1/40th interest in a share of 5.00% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A

EFSCP

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ☐ No ☒

As of July 24, 2024, the Registrant had 37,367,430 shares of outstanding common stock, $0.01 par value per share.

This document is also available through our website at http://www.enterprisebank.com.

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

TABLE OF CONTENTS


						Page
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets (Unaudited)						1

Condensed Consolidated Statements of Income (Unaudited)						2

Condensed Consolidated Statements of Comprehensive Income (Unaudited)						3

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)						4

Condensed Consolidated Statements of Cash Flows (Unaudited)						5

Notes to Condensed Consolidated Financial Statements (Unaudited)						7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations						33

Item 3. Quantitative and Qualitative Disclosures About Market Risk						57

Item 4. Controls and Procedures						58

PART II - OTHER INFORMATION

Item 1. Legal Proceedings						58

Item 1A. Risk Factors						59

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						59

Item 3. Defaults Upon Senior Securities						59

Item 4. Mine Safety Disclosures						59

Item 5. Other Information						59

Item 6. Exhibits						60

Signatures						62

Glossary of Acronyms, Abbreviations and Entities

The acronyms and abbreviations identified below are used in various sections of this Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Item 2 and the Condensed Consolidated Financial Statements and the Notes to Condensed Consolidated Financial Statements in Item 1 of this Form 10-Q.

ACL

Allowance for Credit Losses

Federal Reserve

Federal Reserve Board

ASU

Accounting Standards Update

FHLB

Federal Home Loan Bank

Bank

Enterprise Bank & Trust

GAAP

Generally Accepted Accounting Principles (United States)

C&I

Commercial and Industrial

GDP

Gross Domestic Product

CCB

Capital Conservation Buffer

ICE

The Intercontinental Exchange

CECL

Current Expected Credit Loss

LIBOR

London Interbank Offered Rate

Company

Enterprise Financial Services Corp and Subsidiaries

NIM

Net Interest Margin

CRE

Commercial Real Estate

Not meaningful

EFSC

Enterprise Financial Services Corp and Subsidiaries

SBA

Small Business Administration

Enterprise

Enterprise Financial Services Corp and Subsidiaries

SEC

Securities and Exchange Commission

FASB

Financial Accounting Standards Board

SOFR

Secured Overnight Financing Rate

FDIC

Federal Deposit Insurance Corporation

We, Us, Our

Enterprise Financial Services Corp and Subsidiaries

PART I - ITEM 1 - FINANCIAL STATEMENTS

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)


($ in thousands, except share data)	June 30, 2024		December 31, 2023
Assets
Cash and due from banks	$	176,698	$	193,275
Federal funds sold	1,710		2,880
Interest-earning deposits	214,367		236,874
Total cash and cash equivalents	392,775		433,029
Interest-earning deposits greater than 90 days	3,265		3,856
Securities available-for-sale	1,615,930		1,618,273
Securities held-to-maturity, net	772,648		750,434
Loans held-for-sale	606		359
Loans	11,000,007		10,884,118
Allowance for credit losses on loans	(139,464)		(134,771)
Total loans, net	10,860,543		10,749,347


Other investments	71,971		66,195
Fixed assets, net	44,831		42,681




Goodwill	365,164		365,164
Intangible assets, net	10,327		12,318

Other assets	477,606		476,934
Total assets	$	14,615,666	$	14,518,590

Liabilities and Shareholders' Equity
Noninterest-bearing demand accounts	$	3,928,308	$	3,958,743
Interest-bearing demand accounts	2,951,899		2,950,259
Money market accounts	3,474,278		3,399,280
Savings accounts	565,348		595,175
Certificates of deposit:
Brokered	494,870		482,759
Customer	867,680		790,155
Total deposits	12,282,383		12,176,371
Subordinated debentures and notes	156,265		155,984
FHLB advances	78,000		—
Other borrowings	178,269		297,829



Other liabilities	165,476		172,338
Total liabilities	$	12,860,393	$	12,802,522

Commitments and contingent liabilities (Note 5)

Shareholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 75,000 shares issued and outstanding ($1,000 per share liquidation preference)	71,988		71,988
Common stock, $0.01 par value; 75,000,000 shares authorized; 37,343,548 and 37,416,028 shares issued and outstanding	373		374

Additional paid in capital	994,116		995,208
Retained earnings	810,935		749,513
Accumulated other comprehensive loss, net	(122,139)		(101,015)
Total shareholders' equity	1,755,273		1,716,068
Total liabilities and shareholders' equity	$	14,615,666	$	14,518,590

The accompanying notes are an integral part of these Consolidated Financial Statements.

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Income (Unaudited)


	Three months ended June 30,				Six months ended June 30,
($ in thousands, except per share data)	2024		2023		2024		2023
Interest income:
Loans	$	189,211	$	170,159	$	375,775	$	322,765
Debt securities:
Taxable	11,765		9,619		23,184		18,905
Nontaxable	5,798		5,659		11,563		11,256

Interest-earning deposits	4,389		2,095		7,958		3,290
Dividends on equity securities	481		365		887		714
Total interest income	211,644		187,897		419,367		356,930
Interest expense:




Deposits	66,374		41,372		130,847		66,033
Subordinated debentures and notes	2,684		2,431		5,168		4,840
FHLB advances	561		1,279		1,590		2,611
Other borrowings	1,496		2,123		3,505		3,225
Total interest expense	71,115		47,205		141,110		76,709
Net interest income	140,529		140,692		278,257		280,221
Provision for credit losses	4,819		6,339		10,575		10,522
Net interest income after provision for credit losses	135,710		134,353		267,682		269,699
Noninterest income:
Deposit service charges	4,542		3,910		8,965		8,038
Wealth management revenue	2,590		2,472		5,134		4,988
Card services revenue	2,497		2,464		4,909		4,802


Tax credit income (loss)	1,874		368		(316)		2,181


Other income	3,991		5,076		8,960		11,179
Total noninterest income	15,494		14,290		27,652		31,188
Noninterest expense:
Employee compensation and benefits	44,524		41,641		89,786		84,144
Deposit costs	21,706		16,980		41,983		29,700
Occupancy	4,197		3,954		8,523		8,015
Data processing	5,339		3,661		9,678		7,371
Professional fees	1,298		1,566		2,733		3,197




Other expense	16,953		18,154		34,815		34,512
Total noninterest expense	94,017		85,956		187,518		166,939

Income before income tax expense	57,187		62,687		107,816		133,948
Income tax expense	11,741		13,560		21,969		29,083
Net income	$	45,446	$	49,127	$	85,847	$	104,865
Dividends on preferred stock	937		937		1,875		1,875
Net income available to common shareholders	$	44,509	$	48,190	$	83,972	$	102,990

Earnings per common share
Basic	$	1.19	$	1.29	$	2.24	$	2.76
Diluted	1.19		1.29		2.24		2.75

The accompanying notes are an integral part of these Consolidated Financial Statements.

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)


	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2024		2023		2024		2023
Net income	$	45,446	$	49,127	$	85,847	$	104,865
Other comprehensive income (loss), net of tax:
Change in unrealized gain (loss) on available-for-sale securities	(5,375)		(13,677)		(16,448)		10,301
Reclassification of gain on the sale of available-for-sale securities	—		—		—		(285)
Reclassification of gain on held-to-maturity securities	(619)		(686)		(1,245)		(1,324)
Change in unrealized loss on cash flow hedges	(1,175)		(3,338)		(4,117)		(2,063)
Reclassification of loss on cash flow hedges	421		211		686		238
Total other comprehensive income (loss), net of tax	(6,748)		(17,490)		(21,124)		6,867
Total comprehensive income	$	38,698	$	31,637	$	64,723	$	111,732

The accompanying notes are an integral part of these Consolidated Financial Statements.

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)


Three and six months ended June 30, 2024
	Preferred Stock			Common Stock
($ in thousands, except per share data)	Shares	Amount		Shares	Amount		Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance at March 31, 2024	75	$	71,988	37,515	$	375	$	995,969	$	778,784	$	(115,391)	$	1,731,725
Net income	—	—		—	—		—		45,446		—		45,446





Other comprehensive loss	—	—		—	—		—		—		(6,748)		(6,748)
Common stock dividends ($0.26 per share)	—	—		—	—		—		(9,728)		—		(9,728)
Preferred stock dividends ($12.50 per share)	—	—		—	—		—		(937)		—		(937)


Repurchase of common stock	—	—		(225)	(2)		(5,994)		(2,600)		—		(8,596)
Issuance under equity compensation plans, net	—	—		54	—		1,502		(30)		—		1,472


Share-based compensation	—	—		—	—		2,639		—		—		2,639




Balance at June 30, 2024	75	$	71,988	37,344	$	373	$	994,116	$	810,935	$	(122,139)	$	1,755,273

Balance at December 31, 2023	75	$	71,988	37,416	$	374	$	995,208	$	749,513	$	(101,015)	$	1,716,068
Net income	—	—		—	—		—		85,847		—		85,847
Other comprehensive loss	—	—		—	—		—		—		(21,124)		(21,124)
Common stock dividends ($0.51 per share)	—	—		—	—		—		(19,106)		—		(19,106)
Preferred stock dividends ($25.00 per share)	—	—		—	—		—		(1,875)		—		(1,875)
Repurchase of common stock	—	—		(225)	(2)		(5,994)		(2,600)		—		(8,596)
Issuance under equity compensation plans, net	—	—		153	1		(112)		(844)		—		(955)
Share-based compensation	—	—		—	—		5,014		—		—		5,014
Balance at June 30, 2024	75	$	71,988	37,344	$	373	$	994,116	$	810,935	$	(122,139)	$	1,755,273


Three and six months ended, June 30, 2023
	Preferred			Common
($ in thousands, except per share data)	Shares	Amount		Shares	Amount		Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance at March 31, 2023	75	$	71,988	37,311	$	373	$	984,281	$	642,153	$	(105,975)	$	1,592,820
Net income	—	—		—	—		—		49,127		—		49,127




Other comprehensive income	—	—		—	—		—		—		(17,490)		(17,490)
Common stock dividends ($0.25 per share)	—	—		—	—		—		(9,340)		—		(9,340)
Preferred stock dividends ($12.50 per share)	—	—		—	—		—		(937)		—		(937)



Issuance under equity compensation plans, net	—	—		48	1		1,409		(22)		—		1,388


Share-based compensation	—	—		—	—		2,665		—		—		2,665



Balance at June 30, 2023	75	$	71,988	37,359	$	374	$	988,355	$	680,981	$	(123,465)	$	1,618,233

Balance at December 31, 2022	75	$	71,988	37,253	$	373	$	982,660	$	597,574	$	(130,332)	$	1,522,263
Net income	—	—		—	—		—		104,865		—		104,865
Other comprehensive income	—	—		—	—		—		—		6,867		6,867
Common stock dividends ($0.50 per share)	—	—		—	—		—		(18,668)		—		(18,668)
Preferred stock dividends ($25.00 per share)	—	—		—	—		—		(1,875)		—		(1,875)
Issuance under equity compensation plans, net	—	—		106	1		561		(915)		—		(353)
Share-based compensation	—	—		—	—		5,134		—		—		5,134
Balance at June 30, 2023	75	$	71,988	37,359	$	374	$	988,355	$	680,981	$	(123,465)	$	1,618,233

The accompanying notes are an integral part of these Consolidated Financial Statements.

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)


	Six months ended June 30,
($ in thousands)	2024		2023
Cash flows from operating activities:
Net income	$	85,847	$	104,865
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	2,591		2,547
Provision for credit losses	10,575		10,522
Deferred income taxes	939		776
Net amortization of discount/premiums on debt securities	2,056		2,039
Net amortization on loan discount/premiums	1,004		2,108
Amortization of intangible assets	1,991		2,375
Amortization of servicing assets	606		1,006
Mortgage loans originated-for-sale	(14,177)		(9,578)
Proceeds from mortgage loans sold	14,017		10,279
Loss (gain) on:
Sale of investment securities	—		(381)
Sale of SBA loans	(1,415)		(501)
Sale of other real estate	2		(188)
Sale of fixed assets	—		10
Sale of state tax credits	(769)		(215)


Share-based compensation	5,014		5,134




Net change in other assets and liabilities	(1,884)		8,988







Net cash provided by operating activities	106,397		139,786
Cash flows from investing activities:

Net increase in loans	(150,911)		(789,370)


Proceeds received from:
Sale of debt securities, available-for-sale	—		28,741
Paydown or maturity of debt securities, available-for-sale	107,671		119,794
Paydown or maturity of debt securities, held-to-maturity	3,471		3,623
Redemption of other investments	50,387		75,843
Sale of SBA loans	25,090		9,502
Sale of state tax credits held for sale	4,319		1,225
Sale of other real estate	207		457
Sale of fixed assets	—		43

Payments for the purchase of:
Available-for-sale debt securities	(127,647)		(154,787)
Held-to-maturity debt securities	(28,480)		(21,146)
Other investments	(57,134)		(76,454)

State tax credits held for sale	(2,803)		(75)
Fixed assets	(4,741)		(1,603)
Net cash used in investing activities	(180,571)		(804,207)


	Six months ended June 30,
($ in thousands)	2024		2023
Cash flows from financing activities:
Net decrease in noninterest-bearing deposit accounts	(30,435)		(762,171)
Net increase in interest-bearing deposit accounts	136,447		1,552,881
Net increase in FHLB advances	78,000		50,000



Repayments of notes payable	(11,429)		(2,857)




Net decrease in other borrowings	(108,131)		(121,872)




Repurchase of common stock	(8,596)		—
Cash dividends paid on common stock	(19,106)		(18,668)
Cash dividends paid on preferred stock	(1,875)		(1,875)
Other	(955)		(353)



Net cash provided by financing activities	33,920		695,085
Net increase (decrease) in cash and cash equivalents	(40,254)		30,664
Cash and cash equivalents, beginning of period	433,029		291,359
Cash and cash equivalents, end of period	$	392,775	$	322,023
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	142,563	$	74,691
Income taxes	14,401		21,703
Noncash investing and financing transactions:
Transfer to other bank owned assets	3,219		—

Right-of-use assets obtained in exchange for lease obligations	985		3,137

The accompanying notes are an integral part of these Consolidated Financial Statements.

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used by the Company in the preparation of the condensed consolidated financial statements are summarized below:

Business and Consolidation

Enterprise is a financial holding company that provides a full range of banking and wealth management services to individuals and corporate customers primarily located in Arizona, California, Florida, Kansas, Missouri, Nevada, and New Mexico, and SBA loan and deposit productions offices throughout the country through its banking subsidiary, Enterprise Bank & Trust.

Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2024. These financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC.

Basis of Financial Statement Presentation

The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information presented not misleading. Except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

The condensed consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All intercompany accounts and transactions have been eliminated.

In the opinion of management, the consolidated financial statements contain all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation of the statements of financial position, results of operations, and cash flow for the interim periods.

Recent Accounting Pronouncements

FASB ASU 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 was issued in June 2022 to (1) clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) amend a related illustrative example, and (3) introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The adoption of ASU 2022-03 did not have a material effect on the consolidated financial statements.

FASB ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. ASU 2023-02 was issued in March 2023 to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. If certain conditions are met, a reporting entity may elect to account for its tax equity investments by using the proportional amortization method regardless of the program from which it receives income tax credits, instead of only low-

income-housing tax credit (“LIHTC”) structures. This amendment also eliminates certain LIHTC-specific guidance aligning the accounting with other equity investments in tax credit structures. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The adoption of ASU 2023-02 did not have a material effect on the consolidated financial statements.

FASB ASU 2023-07, Improvements to Reportable Segment Disclosures. ASU 2023-07 was issued in November 2023 to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment disclosures. The amendments in this update require annual and interim disclosures on significant segment expenses that are regularly provided to the chief operating decision maker and require annual and interim disclosures on “other segment items” that comprise the difference between segment revenue less segment expense compared to the reported measure of segment profit or loss. In addition, the amendments will require all annual disclosures that are currently required to be reported on an interim basis and requires disclosure of the title and position of the chief operating decision maker and how that position uses the information to assess segment performance and the allocation of resources. ASU 2023-07 also requires entities that have a single reportable segment, such as the Company, to provide all disclosures required in this update and the existing segment disclosures in Topic 280. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the accounting and disclosure requirements of ASU 2023-07 and does not expect them to have a material effect on the consolidated financial statements.

FASB ASU 2023-09, Income Tax Disclosures. ASU 2023-09 was issued in December 2023 to require annual disclosures on specific categories in the income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Annual disclosures are required on income taxes paid, including the amounts paid for federal, state and foreign taxes and the amount paid in individual jurisdictions if the amount is equal to or greater than 5% of total income taxes paid (net of refunds received). Additional annual disclosures are required on pre-tax income from continuing operations and income tax expense, disaggregated by domestic and foreign amounts. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The Company is evaluating the accounting and disclosure requirements of ASU 2023-09 and does not expect them to have a material effect on the consolidated financial statements.

NOTE 2 - EARNINGS PER SHARE

Basic earnings per common share data is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method.

The following table presents a summary of per common share data and amounts for the periods indicated.


	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2024		2023		2024		2023
Net income available to common shareholders	$	44,509	$	48,190	$	83,972	$	102,990








Weighted average common shares outstanding	37,485		37,347		37,488		37,326

Additional dilutive common stock equivalents	55		148		76		185
Weighted average diluted common shares outstanding	37,540		37,495		37,564		37,511

Basic earnings per common share:	$	1.19	$	1.29	$	2.24	$	2.76
Diluted earnings per common share:	1.19		1.29		2.24		2.75

For the three and six months ended June 30, 2024, common stock equivalents of approximately 634,000 and 621,000, respectively, were excluded from the earnings per share calculations because their effect would have been anti-dilutive. Comparatively, there were 462,000 and 411,000 common stock equivalents excluded in the three and six months ended June 30, 2023, respectively.

NOTE 3 - INVESTMENTS

The following tables present the amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of securities available for sale and held to maturity:


	June 30, 2024
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises	$	322,502	$	129	$	(19,675)	$	302,956
Obligations of states and political subdivisions	494,340		3		(86,102)		408,241
Agency mortgage-backed securities	782,236		385		(63,613)		719,008
U.S. Treasury bills	180,836		2		(2,943)		177,895
Corporate debt securities	8,750		—		(920)		7,830
Total securities available for sale	$	1,788,664	$	519	$	(173,253)	$	1,615,930
Held-to-maturity securities:

Obligations of states and political subdivisions	$	599,916	$	3,250	$	(57,686)	$	545,480
Agency mortgage-backed securities	50,226		—		(5,630)		44,596
Corporate debt securities	122,820		243		(9,619)		113,444
Total securities held-to-maturity	$	772,962	$	3,493	$	(72,935)	$	703,520
Allowance for credit losses	(314)
Total securities held-to-maturity, net	$	772,648


	December 31, 2023
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises	$	316,511	$	303	$	(20,368)	$	296,446
Obligations of states and political subdivisions	500,881		57		(68,767)		432,171
Agency mortgage-backed securities	758,283		1,181		(59,083)		700,381
U.S. Treasury Bills	184,709		62		(3,070)		181,701
Corporate debt securities	8,750		—		(1,176)		7,574
Total securities available for sale	$	1,769,134	$	1,603	$	(152,464)	$	1,618,273
Held-to-maturity securities:

Obligations of states and political subdivisions	$	575,699	$	7,078	$	(47,461)	$	535,316
Agency mortgage-backed securities	52,100		—		(5,424)		46,676
Corporate debt securities	123,420		216		(8,981)		114,655
Total securities held to maturity	$	751,219	$	7,294	$	(61,866)	$	696,647
Allowance for credit losses	(785)
Total securities held-to-maturity, net	$	750,434

The balance of held-to-maturity securities in the “Amortized Cost” column in the table above includes a cumulative net unamortized unrealized gain of $12.5 million and $14.1 million at June 30, 2024 and December 31, 2023, respectively. Such amounts are amortized over the remaining life of the securities.

At June 30, 2024 and December 31, 2023, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government agencies and sponsored enterprises. Securities of $1.2 billion and $1.6 billion at June 30, 2024 and December 31, 2023, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions, in addition to collateral securing borrowing bases with the FHLB and the Federal Reserve Bank.

The amortized cost and estimated fair value of debt securities at June 30, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately four years.


	Available for sale				Held to maturity
($ in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	168,521	$	166,950	$	5,322	$	5,205
Due after one year through five years	293,374

ENTERPRISE FINANCIAL SERVICES CORP [EFSC] Filings

ENTERPRISE FINANCIAL SERVICES CORP [EFSCP] Filings