Hingham Savings Announces 17% Increase in Annual Operating Earnings

HINGHAM, Mass., Jan. 19, 2016 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ:HIFS), announced net income for the year ended December 31, 2015 was $19,346,000 or $9.09 per share basic and $9.02 per share diluted as compared to $22,264,000 or $10.46 per share basic and $10.44 per share diluted for 2014. Annual earnings for 2014 included a one-time net gain of approximately $5.7 million related to a non-taxable life insurance transaction, the details of which were reported in the Bank’s 2014 Annual Report on Form 10-K. Excluding this event, the Bank’s operating earnings was $16,523,000 or $7.76 per share basic and $7.75 per share fully diluted for 2014.  Net income per share (basic) for 2015 increased 17% over 2014, excluding the impact of the life insurance transaction. 

The Bank’s return on average equity for the year ended December 31, 2015 was 14.81% and the return on average assets was 1.18%.  Excluding the impact of the life insurance transaction, the Bank’s return on average equity for the year ended December 31, 2014 was 14.32% and the return on average assets was 1.13%.

Net income for the fourth quarter of 2015 was $5,234,000 or $2.46 per share basic and $2.44 per share diluted; a 15% increase over $4,535,000 or $2.13 per share basic and $2.12 per share diluted for the fourth quarter of 2014.  The Bank’s return on average equity for the quarter ending December 31, 2015 was 15.30% and the return on average assets was 1.21%, an improvement from 15.01% and 1.18% for the same quarter last year.

The Bank produced strong growth in deposits, loans, and book value per share in 2015.  Deposits increased by 12% to $1.217 billion.  Net loans increased by 13% to $1.406 billion.  Total assets increased by 14% to $1.769 billion.  Book value per share increased by 14% to $64.83.  This increase in book value per share excludes capital returned to the ownership through regular and special dividends; the Bank declared $1.46 in regular and special dividends in 2015.  

Key credit and operational metrics continued to improve in 2015.  At December 31, 2015, non-performing assets totaled 0.10% of total assets compared to 0.20% of total assets at December 31, 2014.  Non-performing loans as a percentage of the total loan portfolio totaled 0.13% at December 31, 2015 as compared to 0.18% at December 31, 2014.  At December 31, 2015, the Bank did not own any foreclosed real estate.  The efficiency ratio improved to 36.32% in 2015 as compared to 37.12% in 2014.  Operating expenses as a percentage of average assets improved to 1.16% in 2015 as compared to 1.37% in 2014.  Both the efficiency ratio and operating expenses as a percentage of average assets reached new record lows in 2015 and reflect the Bank’s particular focus on disciplined expense management.  

Robert H. Gaughen Jr., President and Chairman of the Board of Directors, stated “At Hingham, we take our role as stewards of the shareholders’ capital seriously.  We are pleased to report a strong return on that capital in 2015.  Our emphasis on careful capital allocation, conservative underwriting, disciplined cost control and measured growth continues to serve our shareholders well.  More important than performance in any one year, however, is a company’s record of compounding shareholder capital over time and through credit cycles.  On this measure, our team strives to set a high bar.”  

Hingham Institution for Savings is a Massachusetts-chartered savings bank located in Hingham, Massachusetts. Incorporated in 1834, it is the oldest financial institution headquartered in Hingham and one of the oldest continuously operating banks in the United States.  The Bank’s main offices are located on Main Street in Hingham.  The Bank also maintains branch offices in South Hingham and the neighboring towns of Cohasset, Hull, Norwell, Scituate and Weymouth, as well as branches in the South End of Boston, on Beacon Hill and on the island of Nantucket.  The Bank’s shares of common stock are listed and traded on The NASDAQ Stock Market under the symbol HIFS.

(1) Annualized

(2) Interest rate spread represents the difference between the yield on earning assets and cost of interest-bearing liabilities.

(3) Net interest margin represents net interest income divided by average earning assets. 

(4) The efficiency ratio represents non-interest expense, divided by the sum of net interest income and non-interest income, excluding gain on sale of securities.

CONTACT: Robert A. Bogart, 
Vice President-Treasurer (781) 749-2200