Heritage Financial Corporation (NASDAQ:HFWA) Q2 2023 Earnings Conference Call July 20, 2023 1:00 PM ET
Company Participants
Jeffrey Deuel - CEO
Donald Hinson - CFO
Bryan McDonald - President and COO
Anthony Chalfant - Chief Credit Officer
Conference Call Participants
David Feaster - Raymond James
Matthew Clark - Piper Sandler
Jeffrey Rulis - D.A. Davidson
Andrew Terrell - Stephens Inc.
Kelly Motta - Keefe, Bruyette, & Woods, Inc.
Timothy Coffey - Janney Montgomery Scott LLC
Operator
Hello, and welcome to the Heritage Financial Corporation Q2 2023 Earnings Conference Call. My name is Elliot, and I'll be coordinating your call today. [Operator Instructions]
I'd now like to hand over to Jeff Deuel, CEO. The floor is yours. Please go ahead.
Jeffrey Deuel
Thank you, Elliot. Welcome, and good morning to everyone who called in and those who may listen later. This is Jeff Deuel, CEO of Heritage Financial. Attending with me are Don Hinson, Chief Financial Officer; Bryan McDonald, President and Chief Operating Officer; and Tony Chalfant, Chief Credit Officer.
Our second quarter earnings release went out this morning premarket, and hopefully, you have had the opportunity to review it prior to the call. We have also posted an updated second quarter investor presentation on the Investor Relations portion of our corporate website, which includes more detail on our deposits, loan portfolio, liquidity and credit quality. We will reference this presentation during the call. Please refer to the forward-looking statements in the press release.
We're very pleased to report another solid quarter with EPS in line with consensus. We continue to see pressure on deposit pricing in Q2, and we expect that to continue for the balance of the year. Deposit movement in Q2 was primarily tied to normal flows, including capital purchases with a lesser portion tied to alternative investments. FDIC insurance-related concerns have substantially subsided. We reported solid organic loan growth of 3% for the quarter as we focus on supporting our existing customers and pursuing new relationships with a primary focus on C&I.
We are pleased with the positive trend of new commitments and new loan closings from our existing production teams and the newer teams added over the past year. We continue to manage expenses carefully, although we also continue to experience the impacts of inflation, mostly on compensation costs. Notably, our long-standing focus on credit quality and actively managing our loan portfolio continues to play out well for us. Staying focused on our conservative risk profile has enabled us to continue to report strong credit metrics and provides a good foundation as credit quality returns to more historical levels.