Heritage Financial Corporation (NASDAQ:HFWA) Q2 2022 Earnings Conference Call July 21, 2022 2:00 PM ET
Company Participants
Jeff Deuel - Chief Executive Officer
Donald Hinson - Executive Vice President and Chief Financial Officer
Tony Chalfant - Executive Vice President and Chief Credit Officer
Bryan McDonald - President and Chief Operating Officer
Conference Call Participants
Adam Butler - Piper Sandler & Co.
Kelly Motta - Keefe, Bruyette & Woods, Inc.
Operator
Good afternoon. Thank you for attending today's Heritage Financial Corporation Q2 2022 Earnings Call. My name is Bethany, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]
I would now like to pass the conference over to our host, Jeff Deuel, CEO of Heritage Financial Corporation. Please go ahead.
Jeff Deuel
Thank you, Bethany. Welcome, and good morning to everyone who called in and to 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 earnings release went out this morning pre-market and hopefully you had an 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 website, which can be found at heritagebanknw.com. We will reference the presentation during the call. Please refer to the forward-looking statements in the press release.
We are happy to report another solid quarter in Q2. Organic loan growth was 5.6% annualized and was aided by lower payoffs, higher line utilization, and a pool of purchased residential mortgage loans. Annualized loan growth ex-PPP was 11.2% for the quarter. We are pleased with the positive trend we see in the number of new commitments and new loan closings. Our production teams are performing quite well in the current market.
We also continue to focus on deposit growth and although we saw some deposit runoff this past quarter, deposit balances began to pick up again after quarter end. Our pipeline of loans and deposits are strong and we expected to continue to grow through the year. We are pleased to report that during the second quarter, we expanded our existing presence in the Portland-Vancouver MSA and gained entry to the Eugene, Oregon market through the hiring of four new commercial banking teams. We believe these new teams will begin to contribute to our new loan and deposit growth in Q3.