ENTERPRISE FINANCIAL SERVICES CORPEFSC
ENTERPRISE FINANCIAL SERVICES CORP Debt Disclosure
OTHER BORROWINGS
Securities Sold Under Agreement to Repurchase
The Company enters into sales of securities under agreements to repurchase. The agreements are transacted with deposit customers and are utilized as an overnight investment product. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the Consolidated Balance Sheets. The securities underlying these agreements are included in investment securities in the Consolidated Balance Sheets. The Company has no control over the market value of the securities, which fluctuates due to market conditions. However, the Company is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Company manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.
A summary of securities sold under agreements to repurchase is as follows:
| December 31, | |||||||||||
| ($ in thousands) | 2024 | 2023 | |||||||||
| Securities sold under agreement to repurchase | $ | 244,618 | $ | 250,197 | |||||||
| Average balance during the year | 164,959 | 168,745 | |||||||||
| Maximum balance outstanding at any month-end during the year | 244,618 | 250,197 | |||||||||
| Average interest rate during the year | 3.44 | % | 2.16 | % | |||||||
| Average interest rate at the year ended | 3.09 | % | 3.56 | % | |||||||
Federal Reserve Line
The Bank also has a line with the Federal Reserve Bank of St. Louis which provides additional liquidity. As of December 31, 2024 and 2023, $2.8 billion and $2.5 billion, respectively, was available under this line. This line was secured by a pledge of certain eligible loans and securities aggregating $3.2 billion and $2.9 billion, at December 31, 2024 and 2023, respectively. Included in the line at December 31, 2023 was $215.0 million related to the Bank Term Funding program that ended on March 11, 2024. There were no amounts drawn on the Federal Reserve line of credit as of December 31, 2024 or 2023.
Other Borrowings
The Company had $36.2 million of borrowings from various entities related to New Market Tax Credit investments at December 31, 2024 and 2023. These notes have remaining terms that range from 24-29 years. These notes have an interest rate of 1.0% and are generally interest only for the first 7 years.
Revolving Credit Line
In February 2016, the Company entered into a senior unsecured revolving credit agreement (the “Revolving Agreement”) with another bank. The Revolving Agreement had a one-year term that matured on February 22, 2025, allowed for borrowings up to $25 million, and had an interest rate of one-month Term SOFR plus 185 basis points until February 2025. A fee of 0.40% annually was assessed against the unused commitment. The proceeds could be used for general corporate purposes. The Revolving Agreement was subject to ongoing compliance with a number of customary affirmative and negative covenants as well as specified financial covenants. The revolving credit line was not accessed in 2024 or 2023.
Term Loan
In February 2019, the Company entered into a five year, $40.0 million unsecured term loan agreement (the “Term Loan”) with another bank with the proceeds primarily used to fund the company’s cash portion of an acquisition in 2019. The interest rate was one-month LIBOR plus 125 basis points until February 2022. In February 2022, the interest rate on the Term Loan was amended to one-month Term SOFR plus 136 basis points. The term loan agreement matured in February 2024 and was not renewed.
A summary of the Term Loan is as follows:
| December 31, | |||||||||||
| ($ in thousands) | 2024 | 2023 | |||||||||
| Term Loan | $ | — | $ | 11,429 | |||||||
| Average balance during the year | 1,624 | 14,959 | |||||||||
| Maximum balance outstanding at any month-end | 11,429 | 17,143 | |||||||||
| Weighted average interest rate during the year | 6.78 | % | 6.44 | % | |||||||
| Average interest rate at December 31 | — | % | 6.70 | % | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 28, 2025 | Showing above |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.