Hingham Savings Announces 24% Increase In Quarterly Earnings Per Share, 15.96% Return On Equity

HINGHAM, Mass., July 13, 2016 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ:HIFS), announced second quarter earnings for 2016. Net income for the quarter ended June 30, 2016 was $5,867,000 or $2.75 per share basic and $2.73 per share diluted as compared to $4,723,000 or $2.22 per share basic and $2.20 per share diluted for the second quarter of 2015.  Net income per share (basic) for the second quarter of 2016 increased 24% over the same period in 2015.  The Bank’s annualized return on average equity for the second quarter of 2016 was 15.96%, and the annualized return on average assets was 1.21% as compared to 14.70% and 1.19% for the same period in 2015. Net income for the 2016 period included an after-tax realized gain on investments of approximately $221,000, which was unrelated to the Bank’s core business operations.

Net income for the six months ended June 30, 2016 was $11,191,000 or $5.25 per share basic and $5.21 per share diluted as compared to $9,238,000 or $4.34 per share basic and $4.31 per share diluted for the same period last year. Net income per share (basic) for the first six months of 2016 increased 21% over the same period in 2015.  The Bank’s annualized return on average equity for the first six months of 2016 was 15.51% and the annualized return on average assets was 1.20%. The Bank’s annualized return on average equity for the first six months of 2015 was 14.61%, and the annualized return on average assets was 1.17%.

Strong balance sheet growth trends of recent years continued, as deposits were $1.320 billion at June 30, 2016, representing 17% annualized growth year-to-date and 17% growth from June 30, 2015.  Net loans were $1.525 billion at June 30, 2016, representing 17% annualized growth year-to-date and 18% growth from June 30, 2015.  Total assets were $1.919 billion at June 30, 2016, representing 17% annualized growth year-to-date and 17% growth from June 30, 2015.  Book value per share increased to $69.69 per share at June 30, 2016, representing a 15% annualized growth rate year-to-date and a 14% increase from June 30, 2015.  In addition to the increase in book value per share, the Bank has declared $1.50 in dividends per share since June 30, 2015.

Key credit and operational metrics remained steady in the second quarter of 2016.  At June 30, 2016, non-performing assets totaled 0.18% of total assets, compared with 0.10% at December 31, 2015 and 0.11% at June 30, 2015.  Non-performing loans as a percentage of the total loan portfolio totaled 0.22% at June 30, 2016, as compared to 0.13% at December 31, 2015 and 0.13% at June 30, 2015.  At June 30, 2016, the Bank did not own any foreclosed property.  The efficiency ratio improved to 32.96% for the second quarter of 2016, as compared to 36.36% for the same period last year.  Non-interest expense (annualized) as a percentage of average assets fell to 1.00% for the second quarter of 2016, as compared to 1.18% for the same period last year.  These metrics reflect the Bank’s disciplined focus on credit and expense management.

President Robert H. Gaughen, Jr. stated, “We are pleased to report that our current quarterly earnings per share represent a 24% increase over the second quarter of 2015.  At Hingham, we take our role as stewards of the shareholders’ capital seriously.  Our emphasis on careful capital allocation, defensive and conservative underwriting, and disciplined cost control continues to serve our owners well.  More important than performance in any one period, 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 Office is 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 interest-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:    Patrick R. Gaughen, Executive Vice President (781) 783-1761