Enterprise Financial Services Corp (NASDAQ:EFSC) Q1 2023 Earnings Conference Call April 25, 2023 11:00 AM ET
Company Participants
Jim Lally - President and Chief Executive Officer
Scott Goodman - President, Enterprise Bank & Trust
Keene Turner - Chief Financial Officer and Chief Operating Officer
Conference Call Participants
Jeff Rulis - D.A. Davidson
Andrew Liesch - Piper Sandler
Damon DelMonte - KBW
Brian Martin - Janney
Operator
Good morning. My name is David, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Enterprise Financial Services Corp. Q1 2023 Earnings Conference Call. Today's conference is being recorded. [Operator Instructions] Thank you.
Jim Lally, President and CEO, you may begin your conference.
Jim Lally
Well, thank you, David, and thank you all very much for joining us this morning, and welcome to our 2023 first quarter earnings call.
Joining me this morning is Keene Turner, EFSC's Chief Financial and Chief Operating Officer; and Scott Goodman, President of Enterprise Bank & Trust.
Before we begin, I would like to remind everybody on the call that a copy of the release and accompanying presentation can be found on our website. The presentation and earnings release were furnished on SEC Form 8-K yesterday. Please refer to Slide 2 of the presentation titled Forward-Looking Statements and our most recent 10-K and 10-Q for reasons why actual results may vary from any forward-looking statements that we make today.
Our company entered 2023 with a great deal of momentum. Loan pipelines were good. Our newer markets and businesses were contributing as expected. Credit was in great shape and clients are doing very well. Along the way, the industry disruption experienced in early March tested our relationship model and the results from our first quarter, in particular, how we ended the quarter with respect to deposit growth, liquidity, cost of deposits, borrowing capacity and capital ratios show that we passed this test with flying colors.
During our fourth quarter call, I spoke about the relationship aspect of our depository businesses. We knew that 2023 would be a year that would require us to find the appropriate balance between retaining and growing the space while being mindful of competition and rising rates. What we did not know is that this would be put to the test in a matter of days and weeks in early March.
I was impressed, but certainly not surprised by two things: first, our team's commitment and ability to reach out to our clients to explain what was happening and to reinforce our strength and differentiation versus those who are experiencing issues; and secondly, the incredible confidence that our client base had in our company. Since then, we have been working with these clients to remix their deposits, seeking the appropriate balance between yield and safety, using all products and resources available to them. Scott and Keene will provide much more details on this in their comments.