Hingham Institution For Savings · NASDAQ:HIFS
Hingham Institution For Savings — Shareholder Meeting (2023)
25 slides from Hingham Institution For Savings's shareholder meeting presentation, 2023
Slide 1: Hingham Institution for Savings 2023 Shareholders Meeting
HINGHAM INSTITUTION FOR SAVINGS 2023 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: 30 Years Later
30 Years Later DUSLILESD Dissident slate wins control of Hingham bank OUSTED Continued from Page 1 - public in Febroary when Cav Eemouneed hs outa oft chalenges 0 Bulnan's cand (Civil war in the boardroom at eck: fn 1989, was in- aa ton ings marketing + Seid ia cap ah meen te a: ‘month on charges re
Slide 4: Informal Meeting
Informal Meeting 3 ○ Financial Results ○ Operating Highlights ○ Q&A
Slide 5: 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 6: What We Do
What We Do 5 ● Commercial Real Estate Lending ● Commercial and Personal Deposit Banking ● Residential Real Estate Lending
Slide 7: 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 ● Secondary Market Residential ○ Leveraged Lending Mortgage ● Consumer Lending ● Tax Credits ○ Credit C
Slide 8: 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 9: 2022 Financial Results
8 2022 Financial Results
Slide 10: Earnings
(in millions) $80.0 $60.0 $40.0 $20.0 $0.0 Earnings Annual Earnings $67.5 $50.8 $37.5 2018 2019 2020 @ Earnings 2021 2022
Slide 11: Return on Shareholder Equity
Return on Shareholder Equity 10 Source: Depositors Insurance Fund, All Massachusetts Savings Banks
Slide 12: Shareholder Equity
Shareholder Equity Book Value Per Share 11 5YR CAGR of 15.5%
Slide 13: Low Cost Leadership
Low Cost Leadership 12 ● 2022 Efficiency Ratio = 24.81% ● Operating Expenses/Total Assets = 70 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 business
Slide 14: Lending
13 Lending
Slide 15: Disciplined Loan Growth
Disciplined Loan Growth 14 5YR CAGR of 14.8%
Slide 16: Commercial Loan Growth
Commercial Loan Growth 15 5YR CAGR of 23.0%
Slide 17: Avoid Loan Losses
Avoid Loan Losses 16 Source: FDIC
Slide 18: Deposits
17 Deposits
Slide 19: Deposits
Deposits $3,000 $2,000 = $1,573 & $1,000 $o 2018 2019 2020 2021 2022 SYR CAGR of 10.7%
Slide 20: 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 21: 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 $658MM in retail and business depo
Slide 22: 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 ○ Significant growth in MMDA and time deposit balances over the last year ● Customer Support Team ○ Distributed Team for Remote C
Slide 23: Looking Backwards - Key Learnings
Looking Backwards - Key Learnings 22 ● Hindsight Bias ○ Problem of Connecting Decisions and Outcomes ● Asset / Liability Management ○ Portfolio or Loan Level Swaps ○ Changes to Borrowing Program ● Importance of Key People
Slide 24: Looking Forward - Key Challenges
Looking Forward - Key Challenges 22 ● Funding Conditions - The Key Challenge ● Credit Quality ● Commercial Lending ○ Market Disruption ○ San Francisco ● Scaling SDG ○ Team // Process ○ Washington and San Francisco ● Process Improvement and Eliminating Waste
Slide 25: Discussion and Q&A
23 Discussion and Q&A
Hingham Institution for Savings — Shareholder Meeting (2023) on 6ix