Hingham Institution For Savings · NASDAQ:HIFS
Hingham Institution For Savings — Shareholder Meeting (2024)
24 slides from Hingham Institution For Savings's shareholder meeting presentation, 2024
Slide 1: Hingham Institution for Savings 2024 Shareholders Meeting
HINGHAM INSTITUTION FOR SAVINGS 2024 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 ○ Oil, Gas, Mining, Minerals Mortgage ● Consumer Len
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: 2023 Financial Results
8 2023 Financial Results
Slide 9: Earnings
(in millions) $80.0 $60.0 $40.0 $20.0 $0.0 Earnings Annual Earnings $67.5 $50.8 $37.5 $26.4 2019 2020 2021 @ Earnings 2022 2023
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 13.6%
Slide 12: Low Cost Leadership
Low Cost Leadership 12 ● 2023 Efficiency Ratio = 57.18% ● 2023 Operating Expenses/Total Average Assets = 67 bps ● This is the product of both structural and operational choices ○ Structural = Game Selection ○ Operational = Game Play ● We must be relentless in taking unnecessary costs out of our busi
Slide 13: Lending
13 Lending
Slide 14: Disciplined Loan Growth
Disciplined Loan Growth 14 5YR CAGR of 14.3%
Slide 15: Net Charge Offs - Hingham v. All FDIC Insured Banks
Net Charge Offs - Hingham v. All FDIC Insured Banks 1.55 3.0 25 2.0 15 1.0 (sueo7 abelany Jo %) = Industry ® Hingham 15
Slide 16: Portfolio Quality
Portfolio Quality 16 ◻ No non-performing or non-accrual loans commercial loans (90+ PD) ◻ No delinquent commercial loans (30+ PD) ◻ No “modified” loans - no extend and pretend at Hingham ◻ Of $3.5B in commercial loans, there is a single loan for $460K that is currently 15 days past its due date
Slide 17: Deposits
17 Deposits
Slide 18: Deposits
Deposits $3,000 2,205 $2,393 S $2,349 $2,000 $21 39 $1,000 (in millions) $0 2019 2020 2021 2022 2023 SYR CAGR of 8.4%
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) ○ 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 ○ Historic growth engine, but results have not been
Slide 21: Energizing the Retail Footprint
Energizing the Retail Footprint 21 ● Retail Banking Group ○ Boston // South Shore // Nantucket // Washington ○ Single Point of Contact for Deposit and Residential Lending ○ Growth in MMDA and time deposits in 2023 ○ Importance of Key People ○ Selective Branch Expansion
Slide 22: Looking Backwards - Key Learnings
Looking Backwards - Key Learnings 22 ● Hindsight Bias ○ Problem of Connecting Decisions and Outcomes ● Asset / Liability Management ○ Asset Sensitivity ○ Liability Mix
Slide 23: Looking Forward - Key Challenges
Looking Forward - Key Challenges 22 ● Credit Quality ● Funding Conditions ○ Stabilization of Margin ○ Borrowing Strategies ○ Adjusting Asset Sensitivity ● Commercial Lending ○ Team ○ Market Conditions ○ Opportunities ● Scaling SDG ○ Team ○ Support Model ○ Washington and San Francisco ● Process Impro
Slide 24: Discussion and Q&A
23 Discussion and Q&A
Hingham Institution for Savings — Shareholder Meeting (2024) on 6ix