Hingham Institution For Savings · NASDAQ:HIFS
Hingham Institution For Savings — Shareholder Meeting (2025)
21 slides from Hingham Institution For Savings's shareholder meeting presentation, 2025
Slide 1: Hingham Institution for Savings 2025 Shareholders Meeting
HINGHAM INSTITUTION FOR SAVINGS 2025 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 and Personal Deposit Banking ● Commercial Real Estate Lending ● 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: 2024 Financial Results
8 2024 Financial Results
Slide 9: Earnings
(in millions) $80.0 $60.0 $20.0 $0.0 $67.5 $50.8 $37.5 $26.4 Earnings Annual Earnings $28.2 2020 2021 2022 @ Earnings 2023 2024
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 11.3%
Slide 12: Low Cost Leadership
Low Cost Leadership 12 ● 2024 Efficiency Ratio = 63.79% ● 2024 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: Disciplined Loan Growth
Disciplined Loan Growth 14 5YR CAGR of 11.7%
Slide 14: Net Charge Offs - Hingham v. All FDIC Insured Banks
Net Charge Offs - Hingham v. All FDIC Insured Banks 2 06 ° | ose 025 027 " I l. 080 0 ae os os id | | | | 049 0 069 oa fos | | | 4 s - in BS De | . | = Industry = Hingham aot oo 275 [—— a . a ‘ Bo 5 5s 8 a8 — * i 5 a 3 | ng (sueo7 abesany Jo %) 028 15
Slide 15: Deposits
Deposits $3,000 2,505 i 92,303 f° 92,350, $2,000 $2,139 $1,000 (in millions) $0 2020 2021 2022 2023 2024 SYR CAGR of 6.5%
Slide 16: Non-Interest Bearing Deposits
Non-Interest Bearing Deposits 17
Slide 17: 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 18: 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 ○ Expansion Focus ■ Upgrading the number and quality
Slide 19: First Quarter 2025
First Quarter 2025 20 ● Balance Sheet ○ Loan Growth ○ Deposit Growth ○ NIB Deposit Growth ● Income Statement ○ NIM ○ Efficiency ○ Investment Portfolio
Slide 20: Looking Forward - Key Challenges
Looking Forward - Key Challenges 22 ● Credit Quality ○ Multifamily Outlook ○ Washington, D.C. ○ San Francisco ● Funding Conditions ○ Stabilization of Margin ○ Growth in NIB Deposits ○ Liability Sensitivity ● Scaling SDG ○ Team ○ Acquisition ○ Support ● Process Improvement and Eliminating Waste
Slide 21: Discussion and Q&A
23 Discussion and Q&A
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