Hingham Institution For Savings · NASDAQ:HIFS
Hingham Institution For Savings — Shareholder Meeting (2021)
23 slides from Hingham Institution For Savings's shareholder meeting presentation, 2021
Slide 1: Hingham Institution for Savings 2021 Shareholders Meeting
HINGHAM INSTITUTION FOR SAVINGS 2021 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 ● Investments Industrial Lending ○ Wealth ○ ABL Management ○ Leasing ○ Trust ○ Loans and Lines ○ Investment Advisory ○ SBA (*) ● Insurance Brokerage or ○ Leveraged Lending Underwriting ● Consumer Lending ● Secondary Market ○ Credit Card Residential Mortgage ○ Mari
Slide 7: Capital Allocation
Capital Allocation 7 1. Attractive a. Reinvest in our Lending and Deposit Businesses - Existing and New Geographies (Organic Growth) b. Make Minority Equity Investments - Public and Private - Focused on Financial Services c. Maintain Appropriate Leverage Through Regular and Special Dividends d. Oppo
Slide 8: 2021 Financial Results
8 2021 Financial Results
Slide 9: Earnings
(in millions) $60.0 $40.0 $20.0 $0.0 2016 Earnings Annual Earnings 2017 2018 2019 @ Earnings 2020
Slide 10: Return on Shareholder Equity
Return on Shareholder Equity 10 Source: Depositors Insurance Fund, All Massachusetts Savings Banks
Slide 11: Shareholder Equity Book Value Per Share
Shareholder Equity 11 Book Value Per Share 5YR CAGR of 16.1%
Slide 12: Low Cost Leadership
Low Cost Leadership 12 ● 2020 Efficiency Ratio = 25.41% ● This is the product of both structural and operational choices ● We must be relentless in taking unnecessary costs out of our business
Slide 13: Lending
13 Lending
Slide 14: Disciplined Loan Growth
Disciplined Loan Growth 14 5YR CAGR of 12.17%
Slide 15: Commercial Loan Growth
Commercial Loan Growth 15 5YR CAGR of 18.89%
Slide 16: Avoid Loan Losses
Avoid Loan Losses 16 Source: FDIC
Slide 17: Deposits
17 Deposits
Slide 18: Deposits
Deposits 18 5YR CAGR of 11.94%
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 $503MM in retail and business depo
Slide 21: Rationalizing the Retail Footprint
Rationalizing 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 ○ Additional Consolidation
Slide 22: Looking Forward - Key Challenges
Looking Forward - Key Challenges 22 ● Disciplined Growth in New and Existing Markets ● Scaling SDG ● Process Improvement and Eliminating Waste
Slide 23: Discussion and Q&A
23 Discussion and Q&A
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