ENTERPRISE FINANCIAL SERVICES CORP [EFSC] Filings

10-Q 1 efsc-20220331.htm 10-Q efsc-20220331

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 March 31, 2022.


☐						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 April 27, 2022, the Registrant had 37,241,812 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 Operations (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)						6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations						27

Item 3. Quantitative and Qualitative Disclosures About Market Risk						46

Item 4. Controls and Procedures						48

PART II - OTHER INFORMATION

Item 1. Legal Proceedings						48

Item 1A. Risk Factors						48

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds						49

Item 3. Defaults Upon Senior Securities						49

Item 4. Mine Safety Disclosures						49

Item 5. Other Information						49

Item 6. Exhibits						49

Signatures						52

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

FCBP

First Choice Bancorp

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

LIBOR

London Interbank Offered Rate

CECL

Current Expected Credit Loss

MD&A

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Company

Enterprise Financial Services Corp

NIM

Net Interest Margin

CRE

Commercial Real Estate

PCD

Purchased Credit Deteriorated

EFSC

Enterprise Financial Services Corp

PPP

Paycheck Protection Program

Enterprise

Enterprise Financial Services Corp

SBA

Small Business Administration

FASB

Financial Accounting Standards Board

SEC

Securities and Exchange Commission

FCB

First Choice Bank

PART 1 - ITEM 1 - FINANCIAL STATEMENTS

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)


(in thousands, except share and per share data)	March 31, 2022		December 31, 2021
Assets
Cash and due from banks	$	252,706	$	209,177
Federal funds sold	224		1,356
Interest-earning deposits (including $135 and $14,595 pledged as collateral, respectively)	1,728,390		1,811,156
Total cash and cash equivalents	1,981,320		2,021,689
Interest-earning deposits greater than 90 days	7,094		6,996
Securities available-for-sale	1,392,444		1,366,006
Securities held-to-maturity, net	541,039		429,681
Loans held-for-sale	4,270		6,389
Loans	9,056,073		9,017,642
Allowance for credit losses on loans	(139,212)		(145,041)
Total loans, net	8,916,861		8,872,601


Other investments	60,444		59,896
Fixed assets, net	46,900		47,915




Goodwill	365,164		365,164
Intangible assets, net	20,855		22,286

Other assets	370,378		338,735
Total assets	$	13,706,769	$	13,537,358

Liabilities and Shareholders' Equity
Noninterest-bearing deposit accounts	$	4,881,043	$	4,578,436
Interest-bearing transaction accounts	2,547,482		2,465,884
Money market accounts	2,794,536		2,890,976
Savings accounts	883,599		800,210
Certificates of deposit:
Brokered	129,017		128,970
Other	468,458		479,323
Total deposits	11,704,135		11,343,799
Subordinated debentures and notes	155,031		154,899
FHLB advances	50,000		50,000
Other borrowings	228,846		353,863



Other liabilities	95,580		105,681
Total liabilities	$	12,233,592	$	12,008,242

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	71,988		71,988
Common stock, $0.01 par value; 75,000,000 shares authorized; 39,496,569 and 39,799,615 shares issued, respectively	395		398
Treasury stock, at cost; 1,980,093 shares	(73,528)		(73,528)
Additional paid in capital	1,010,446		1,018,799
Retained earnings	523,136		492,682
Accumulated other comprehensive (loss) income	(59,260)		18,777
Total shareholders' equity	1,473,177		1,529,116
Total liabilities and shareholders' equity	$	13,706,769	$	13,537,358

The accompanying notes are an integral part of these consolidated financial statements.

ENTERPRISE FINANCIAL SERVICES CORP AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)


	Three months ended March 31,
(in thousands, except per share data)	2022		2021
Interest income:
Loans	$	96,123	$	76,973
Debt securities:
Taxable	5,351		4,540
Nontaxable	3,942		3,079

Interest-earning deposits	817		189
Dividends on equity securities	348		179
Total interest income	106,581		84,960
Interest expense:




Deposits	2,859		2,663
Subordinated debentures and notes	2,220		2,819
FHLB advances	195		195
Other borrowings	142		160
Total interest expense	5,416		5,837
Net interest income	101,165		79,123
Provision (benefit) for credit losses	(4,068)		46
Net interest income after provision for credit losses	105,233		79,077
Noninterest income:
Deposit service charges	4,163		3,084
Wealth management revenue	2,622		2,483
Card services revenue	3,040		2,496


Tax credit income (expense)	2,608		(1,041)


Other income	6,208		4,268
Total noninterest income	18,641		11,290
Noninterest expense:
Employee compensation and benefits	35,827		29,562
Occupancy	4,586		3,751
Data processing	3,260		2,890
Professional fees	1,177		988



Merger-related expenses	—		3,142
Other expense	17,950		12,551
Total noninterest expense	62,800		52,884

Income before income tax expense	61,074		37,483
Income tax expense	13,381		7,557
Net income	$	47,693	$	29,926
Dividends on preferred stock	1,229		—
Net income available to common shareholders	$	46,464	$	29,926

Earnings per common share
Basic	$	1.23	$	0.96
Diluted	1.23		0.96

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 March 31,
(in thousands)	2022		2021
Net income	$	47,693	$	29,926
Other comprehensive income (loss), after-tax:
Change in unrealized loss on available-for-sale debt securities	(79,353)		(10,920)

Reclassification of gain on held-to-maturity securities	(704)		(1,149)
Change in unrealized gain on cash flow hedges arising during the period	1,751		847
Reclassification of loss on cash flow hedges	269		279
Total other comprehensive loss, after-tax	(78,037)		(10,943)
Comprehensive (loss) income	$	(30,344)	$	18,983

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 months ended March 31, 2022
($ in thousands, except per share data)	Preferred Stock		Common Stock		Treasury Stock		Additional paid in capital		Retained earnings		Accumulated other comprehensive income (loss)		Total shareholders’ equity
Balance at December 31, 2021	$	71,988	$	398	$	(73,528)	$	1,018,799	$	492,682	$	18,777	$	1,529,116
Net income	—		—		—		—		47,693		—		47,693





Other comprehensive loss	—		—		—		—		—		(78,037)		(78,037)

Cash dividends paid on common shares, $0.21 per share	—		—		—		—		(7,915)		—		(7,915)
Cash dividends paid on preferred shares, $16.389 per share			—		—		—		(1,229)		—		(1,229)
Repurchase of common shares, 351,090	—		(4)		—		(9,457)		(7,513)		—		(16,974)
Issuance under equity compensation plans, 48,044 shares, net	—		1		—		(582)		(582)		—		(1,163)

Share-based compensation	—		—		—		1,686		—		—		1,686




Balance at March 31, 2022	$	71,988	$	395	$	(73,528)	$	1,010,446	$	523,136	$	(59,260)	$	1,473,177





















Three months ended March 31, 2021
($ in thousands, except per share data)	Preferred Stock		Common Stock		Treasury Stock		Additional paid in capital		Retained earnings		Accumulated other comprehensive income (loss)		Total shareholders’ equity
Balance at December 31, 2020	$	—	$	332	$	(73,528)	$	697,839	$	417,212	$	37,120	$	1,078,975
Net income	—		—		—		—		29,926		—		29,926

Other comprehensive loss	—		—		—		—		—		(10,943)		(10,943)

Cash dividends paid on common shares, $0.18 per share	—		—		—		—		(5,627)		—		(5,627)




Issuance under equity compensation plans, 48,970 shares, net	—		—		—		(1,109)		—		—		(1,109)

Share-based compensation	—		—		—		1,275		—		—		1,275



Balance at March 31, 2021	$	—	$	332	$	(73,528)	$	698,005	$	441,511	$	26,177	$	1,092,497

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)


	Three months ended March 31,
(in thousands, except share data)	2022		2021
Cash flows from operating activities:
Net income	$	47,693	$	29,926
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	1,472		1,581
Provision (benefit) for credit losses	(4,068)		46
Deferred income taxes	5,248		3,834
Net amortization of debt securities	1,625		1,937
Net amortization (accretion) on loan discount/premiums	429		(736)
Amortization of intangible assets	1,429		1,415
Amortization of servicing assets	648		165
Mortgage loans originated-for-sale	(27,811)		(49,065)
Proceeds from mortgage loans sold	29,636		52,908
Gain on:

Sale of other real estate	(19)		(47)

Sale of state tax credits	(9)		(326)


Share-based compensation	1,686		1,275




Changes in other assets and liabilities, net	(8,076)		(46,588)







Net cash provided by (used in) operating activities	49,883		(3,675)
Cash flows from investing activities:

Net increase in loans	(39,536)		(69,907)


Proceeds received from:

Paydown or maturity of debt securities, available-for-sale	63,506		69,953
Paydown or maturity of debt securities, held-to-maturity	5,097		18,220
Redemption of other investments	1,248		752
Sale of state tax credits held for sale	261		1,632
Sale of other real estate	1,419		450
Settlement of bank-owned life insurance policies	534		—
Payments for the purchase of:
Available-for-sale debt securities	(313,875)		(118,791)
Held-to-maturity debt securities	(1,120)		—
Other investments	(8,154)		(3,660)

State tax credits held for sale	(7,212)		—
Fixed assets	(457)		(489)
Net cash used in investing activities	(298,289)		(101,840)
Cash flows from financing activities:
Net increase in noninterest-bearing deposit accounts	302,607		198,389
Net increase in interest-bearing deposit accounts	57,729		331,666




Repayments of notes payable	(1,429)		(2,857)




Net decrease in other borrowings	(123,589)		(68,835)



Repurchase of common stock	(16,974)		—
Cash dividends paid on common stock	(7,915)		(5,627)
Cash dividends paid on preferred stock	(1,229)		—

Taxes paid in net settlement of equity awards	(1,163)		(1,109)


Net cash provided by financing activities	208,037		451,627
Net (decrease) increase in cash and cash equivalents	(40,369)		346,112
Cash and cash equivalents, beginning of period	2,021,689		537,703
Cash and cash equivalents, end of period	$	1,981,320	$	883,815
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	4,725	$	4,836
Income taxes	979		30,167
Noncash investing and financing transactions:
Transfer to other real estate owned in settlement of loans	$	—	$	1,236

Right-of-use assets obtained in exchange for lease obligations	4,178		—


Transfer of securities from available-for-sale to held-to-maturity	116,927		—

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 Enterprise Financial Services Corp (the “Company,” “EFSC,” or “Enterprise”) 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, Kansas, Missouri, Nevada, and New Mexico through its banking subsidiary, Enterprise Bank & Trust.

Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2022. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, 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 with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. 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, 2021.

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 2021-01, Reference Rate Reform (Topic 848): Scope (ASU 2021-01). ASU 2021-01 was issued in January 2021 and provided optional expedients and exceptions in ASC 848 to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendment only applies to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update were effective immediately upon issuance and did not have a material effect on the consolidated financial statements.

FASB ASU 2022-02, Financial Instruments–Credit Losses (Topic 326); Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 was issued in March 2022 and eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40 and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The amendments in this update will

be effective for fiscal years beginning after December 15, 2022 for entities that have adopted the amendments in ASU 2016-13, Financial Instruments–Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. The Company is evaluating the additional disclosure requirements and does not expect them to have a material effect on the consolidated financial statements.

Acquisitions and Divestitures

Acquisitions and business combinations are accounted for using the acquisition method of accounting. The assets and liabilities of the acquired entities have been recorded at their estimated fair values at the date of acquisition. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets.

The purchase price allocation process requires an estimation of the fair values of the assets acquired and the liabilities assumed. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Company includes an estimate of the acquisition-date fair value as part of the cost of the combination. To determine the fair values, the Company relies on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Fair values are considered preliminary until final fair values are determined, or the measurement period has passed, which is no later than one year from the date of acquisition.

The results of operations of the acquired business are included in the Company’s consolidated financial statements from the date of acquisition. Merger-related expenses include costs directly related to merger or acquisition activity and include legal and professional fees, system consolidation and conversion costs, and compensation costs such as severance and retention incentives for employees impacted by acquisition activity. The Company accounts for merger-related expenses in the periods in which the costs are incurred and the services are received.

For divestitures, the Company measures an asset (disposal group) classified as held-for-sale at the lower of its carrying value at the date the asset is initially classified as held-for-sale or its fair value less costs to sell. The Company reports the results of operations of an entity or group of components that either has been disposed of or held-for-sale as discontinued operations only if the disposal of that component represents a strategic shift that has or will have a major effect on an entity’s operations and financial results.

Any incremental direct costs incurred to transact the sale are allocated against the gain or loss on the sale. These costs typically include items such as legal fees, title transfer fees, broker fees, etc. Any goodwill and intangible assets associated with the portion of the reporting unit to be disposed of is included in the carrying amount of the business in determining the gain or loss on the sale.

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 March 31,
(in thousands, except per share data)	2022		2021
Net income available to common shareholders	$	46,464	$	29,926








Weighted average common shares outstanding	37,788		31,247

Additional dilutive common stock equivalents	70		59
Weighted average diluted common shares outstanding	37,858		31,306

Basic earnings per common share:	$	1.23	$	0.96
Diluted earnings per common share:	1.23		0.96

For the three months ended March 31, 2022 common stock equivalents of approximately 276,000 were excluded from the earnings per share calculations because their effect would have been anti-dilutive. Comparatively, there were 222,000 common stock equivalents excluded in the prior year period.

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:


	March 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises	$	247,906	$	—	$	(12,322)	$	235,584
Obligations of states and political subdivisions	508,912		61		(59,615)		449,358
Agency mortgage-backed securities	607,080		1,034		(27,918)		580,196
U.S. Treasury bills	116,100		77		(596)		115,581
Corporate debt securities	11,750		91		(116)		11,725
Total securities available for sale	$	1,491,748	$	1,263	$	(100,567)	$	1,392,444
Held-to-maturity securities:

Obligations of states and political subdivisions	$	352,799	$	10	$	(40,625)	$	312,184
Agency mortgage-backed securities	63,281		—		(2,970)		60,311
Corporate debt securities	125,517		123		(4,793)		120,847
Total securities held-to-maturity	$	541,597	$	133	$	(48,388)	$	493,342
Allowance for credit losses	(558)
Total securities held-to-maturity, net	$	541,039


	December 31, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises	$	175,409	$	3	$	(1,901)	$	173,511
Obligations of states and political subdivisions	571,587		5,907		(2,410)		575,084
Agency mortgage-backed securities	509,243		8,485		(3,869)		513,859
U.S. Treasury Bills	90,971		220		(21)		91,170
Corporate debt securities	11,750		632		—		12,382
Total securities available for sale	$	1,358,960	$	15,247	$	(8,201)	$	1,366,006
Held-to-maturity securities:

Obligations of states and political subdivisions	$	236,379	$	1,794	$	(730)	$	237,443
Agency mortgage-backed securities	68,105		940		(666)		68,379
Corporate debt securities	125,811		3,039		—		128,850
Total securities held to maturity	$	430,295	$	5,773	$	(1,396)	$	434,672
Allowance for credit losses	(614)
Total securities held-to-maturity, net	$	429,681

During the three months ended March 31, 2022, the Company transferred $116.9 million of securities from available-for-sale to held-to-maturity. The Company believes the held-to-maturity category is consistent with the Company’s intent for these securities. The transfer of securities was made at fair value at the time of transfer. The unamortized portion of the unrealized holding gain at the time of transfer is retained in accumulated other comprehensive income and in the carrying value of held-to-maturity securities. The balance of held-to-maturity securities in the “Amortized cost” column in the table above includes a cumulative net unamortized unrealized gain of $20.3 million and $21.0 million at March 31, 2022 and December 31, 2021, respectively. Such amounts are amortized over the remaining life of the securities.

At March 31, 2022 and December 31, 2021, 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 having a fair value of $581.4 million and $752.7 million at March 31, 2022 and December 31, 2021, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities at March 31, 2022, 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 5 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	$	91,716	$	91,680	$	888	$	891
Due after one year through five years	245,541		234,843		18,315		17,994
Due after five years through ten years	54,940		52,433		150,791		144,456
Due after ten years	492,471		433,292		308,322		269,690
Agency mortgage-backed securities	607,080		580,196		63,281		60,311

	$	1,491,748	$	1,392,444	$	541,597	$	493,342

The following tables presents a summary of available-for-sale investment securities in an unrealized loss position:


	March 31, 2022
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government-sponsored enterprises	$	208,467	$	11,431	$	11,109	$	891	$	219,576	$	12,322
Obligations of states and political subdivisions	425,420		55,979		17,224		3,636		442,644		59,615
Agency mortgage-backed securities	405,833		22,383		47,576

ENTERPRISE FINANCIAL SERVICES CORP [EFSC] Filings

ENTERPRISE FINANCIAL SERVICES CORP [EFSCP] Filings