Investments

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

The following tables present the amortized cost, gross unrealized gains and losses, ACL and fair value of securities available-for-sale and held-to-maturity as of the periods indicated:


	December 31, 2025
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises	$	187,587	$	76	$	(5,091)	$	182,572
Obligations of states and political subdivisions	626,900		3,914		(58,109)		572,705
Agency mortgage-backed securities	1,733,003		12,638		(36,330)		1,709,311
U.S. Treasury Bills	171,355		128		(499)		170,984
Corporate debt securities	19,448		109		(94)		19,463
Total securities available-for-sale	$	2,738,293	$	16,865	$	(100,123)	$	2,655,035

Held-to-maturity securities:

Obligations of states and political subdivisions	$	920,199	$	10,861	$	(39,849)	$	891,211
Agency mortgage-backed securities	43,839		—		(3,199)		40,640
Corporate debt securities	111,064		325		(3,426)		107,963
Total securities held-to-maturity	$	1,075,102	$	11,186	$	(46,474)	$	1,039,814
ACL	(145)
Total securities held-to-maturity, net	$	1,074,957


	December 31, 2024
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises	$	290,329	$	69	$	(14,358)	$	276,040
Obligations of states and political subdivisions	492,896		12		(83,711)		409,197
Agency mortgage-backed securities	1,090,495		1,072		(64,173)		1,027,394
U.S. Treasury Bills	130,565		34		(1,706)		128,893
Corporate debt securities	21,198		—		(452)		20,746
Total securities available-for-sale	$	2,025,483	$	1,187	$	(164,400)	$	1,862,270

Held-to-maturity securities:

Obligations of states and political subdivisions	$	759,059	$	2,366	$	(60,351)	$	701,074
Agency mortgage-backed securities	47,912		—		(5,004)		42,908
Corporate debt securities	122,221		269		(7,601)		114,889
Total securities held-to-maturity	$	929,192	$	2,635	$	(72,956)	$	858,871
ACL	(257)
Total securities held-to-maturity, net	$	928,935

The Company believes the held-to-maturity category is consistent with the Company’s intent for these securities. The Company did not transfer any securities from available-for-sale to held-to-maturity in 2025 or 2024. The balance of held-to-maturity securities in the “Amortized Cost” column in the table above includes a cumulative net unamortized, unrealized gain of $7.6 million and $10.8 million at December 31, 2025 and 2024, respectively. Such amounts are amortized over the remaining life of the securities.

At December 31, 2025 and 2024, there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders’ equity, other than the 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 $1.7 billion and $1.5 billion at December 31, 2025 and December 31, 2024, 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.

The amortized cost and estimated fair value of debt securities at December 31, 2025, 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 five 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	$	250,905	$	249,646	$	4,616	$	4,616
Due after one year through five years	76,242		74,783		129,862		127,143
Due after five years through ten years	353,222		320,753		239,892		239,658
Due after ten years	324,921		300,542		656,893		627,757
Agency mortgage-backed securities	1,733,003		1,709,311		43,839		40,640
	$	2,738,293	$	2,655,035	$	1,075,102	$	1,039,814

There were 681 and 830 available-for-sale securities in an unrealized loss position as of December 31, 2025 and 2024, respectively, included in the following tables:


	December 31, 2025
	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	$	13,971	$	22	$	149,230	$	5,069	$	163,201	$	5,091
Obligations of states and political subdivisions	32,658		245		425,879		57,864		458,537		58,109
Agency mortgage-backed securities	266,639		1,215		377,787		35,115		644,426		36,330
U.S. Treasury Bills	4,996		—		40,418		499		45,414		499
Corporate debt securities	—		—		3,406		94		3,406		94
	$	318,264	$	1,482	$	996,720	$	98,641	$	1,314,984	$	100,123



	December 31, 2024
	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	$	21,044	$	132	$	234,191	$	14,226	$	255,235	$	14,358
Obligations of states and political subdivisions	3,117		143		403,767		83,568		406,884		83,711
Agency mortgage-backed securities	423,600		6,763		478,790		57,410		902,390		64,173
U.S. Treasury Bills	11,708		23		54,177		1,683		65,885		1,706
Corporate debt securities	1,956		44		8,342		408		10,298		452
	$	461,425	$	7,105	$	1,179,267	$	157,295	$	1,640,692	$	164,400

The unrealized losses at both December 31, 2025 and 2024, were primarily attributable to changes in market interest rates since the securities were purchased. At both December 31, 2025 and 2024, there was no ACL on available-for-sale securities.

Accrued interest receivable on held-to-maturity debt securities totaled $12.3 million and $8.6 million at December 31, 2025 and 2024, respectively, and is excluded from the estimate of expected credit losses. The estimate of expected credit losses considers historical credit loss information adjusted for current conditions and reasonable and supportable forecasts. At December 31, 2025 and 2024, the ACL on held-to-maturity securities was $0.1 million and $0.3 million, respectively.

The following table presents a summary of proceeds, gross gains and losses realized from sales of available-for-sale investment securities for the periods indicated:


	Twelve months ended
($ in thousands)	December 31, 2025		December 31, 2024		December 31, 2023
Gross gains realized	$	1,631	$	—	$	601
Gross losses realized	(1,582)		—		—
Proceeds from sales	139,051		—		40,393

Other Investments

At December 31, 2025 and 2024, other investments totaled $80.9 million and $72.8 million, respectively. As a member of the FHLB, the Bank is required to maintain a minimum investment in capital stock with the FHLB consisting of membership stock and activity-based stock. The FHLB capital stock of $9.4 million, and $8.7 million at December 31, 2025 and 2024, respectively, is recorded at cost, which represents redemption value, and is included in other investments in the Consolidated Balance Sheets. The remaining amounts in other investments primarily include various investments in SBICs, CDFIs, private equity investments and the Company’s investment in unconsolidated trusts used to issue preferred securities to third parties, see “Note 11 – Debt.”

ENTERPRISE FINANCIAL SERVICES CORP 10-K