Hingham Institution For Savings · NASDAQ:HIFS
Hingham Institution For Savings — Shareholder Meeting (2022)
24 slides from Hingham Institution For Savings's shareholder meeting presentation, 2022
Slide 1: Hingham Institution for Savings 2022 Shareholders Meeting
HINGHAM INSTITUTION FOR SAVINGS 2022 Shareholders Meeting
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements about Hingham Institution for Savings and its industry involve substantial risks and uncertainties. Statements other than s
Slide 3: Informal Meeting
Informal Meeting 3 ○ Financial Results ○ Operating Highlights ○ Q&A
Slide 4: Banking is a very good business, unless you do dumb things
4 “Banking is a very good business, unless you do dumb things.” Warren Buffett
Slide 5: What We Do
What We Do 5 ● Commercial Real Estate Lending ● Commercial and Personal Deposit Banking ● Residential Real Estate Lending
Slide 6: What We Don't Do
What We Don’t Do 6 ● Commercial and Industrial ● Investments Lending ○ Wealth Management ○ ABL ○ Trust ○ Leasing ○ Investment Advisory ○ Loans and Lines ● Insurance Brokerage or ○ SBA Underwriting ○ Leveraged Lending ● Secondary Market Residential ● Consumer Lending Mortgage ○ Credit Card ● Tax Cred
Slide 7: Capital Allocation
Capital Allocation 7 1. Attractive a. Organic Growth - Reinvest in our Lending and Deposit Businesses - Existing and New Geographies b. Minority Equity Investments - Public and Private - Focused on Financial Services and Technology c. Dividends - Maintain Appropriate Leverage Through Regular and Spe
Slide 8: 2021 Financial Results
8 2021 Financial Results
Slide 9: Earnings
(in millions) $80.0 $60.0 $40.0 $20.0 $0.0 $25.8 Earnings Annual Earnings $67.5 $50.8 $38.9 2017 2018 2019 @ Earnings 2020 2021
Slide 10: Return on Shareholder Equity
Return on Shareholder Equity 10 Source: Depositors Insurance Fund, All Massachusetts Savings Banks
Slide 11: Shareholder Equity
Shareholder Equity Book Value Per Share 11 5YR CAGR of 17%
Slide 12: Low Cost Leadership
Low Cost Leadership 12 ● 2021 Efficiency Ratio = 21.31% ● This is the product of both structural and operational choices ○ Structural = Game Selection ○ Operational = Game Play
Slide 13: Lending
13 Lending
Slide 14: Disciplined Loan Growth
Disciplined Loan Growth 14 5YR CAGR of 13.32%
Slide 15: Commercial Loan Growth
Commercial Loan Growth 15 5YR CAGR of 21.45%
Slide 16: Avoid Loan Losses
Avoid Loan Losses 16 Source: FDIC
Slide 17: Deposits
17 Deposits
Slide 18: Deposits
Deposits 18 5YR CAGR of 11.87%
Slide 19: Deposit Approach
Deposit Approach 19 ● Approach ○ Personalized Service ○ Digital Excellence ○ Low Fee / No Fee ● Two Engines for Growth ○ Specialized Deposit Group (Private Client and Digital First) ○ Retail Banking Group
Slide 20: Increasing Commercial Deposit Focus
Increasing Commercial Deposit Focus 20 ● Specialized Deposit Group (“SDG”) ○ Team of relationship managers and digital banking specialists that handle our largest and most complex deposit relationships, as well as our digital-first account opening ○ Responsible for $648MM in retail and business depo
Slide 21: Energizing the Retail Footprint
Energizing the Retail Footprint 21 ● Retail Banking Group ○ Boston // South Shore // Nantucket ○ Single Point of Contact for Deposit and Residential Lending ○ Thinner Geographic Footprint, More Business Development, Less Transactional Activity ● Customer Support Team ○ Distributed Team for Remote Cu
Slide 22: Looking Forward - Key Challenges
Looking Forward - Key Challenges 22 ● Commercial Lending ○ Credit Quality ○ Boston // Washington // San Francisco ● Scaling SDG ○ Leadership // Team // Technology ● Process Improvement and Eliminating Waste ● Corporate
Slide 23: Discussion and Q&A
23 Discussion and Q&A
Slide 24: Thank you for attending our 2022 Annual Meeting of Shareholders
24 Thank you for attending our 2022 Annual Meeting of Shareholders. A recording of the event will be available on the Investor Relations page on our website in the next few days. Background music Ron Gelinas
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