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HINGHAM, Mass., Oct. 10, 2025 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham, Massachusetts announced results for the quarter ended September 30, 2025. Earnings Net income for the quarter ended September 30, 2025 was $17,295,000 or $7.93 per share basic and $7.85 per share diluted, as compared to $5,846,000 or $2.68 per share basic and $2.66 per share diluted for the same period last year. The Bank’s annualized return on average equity for the third quarter of 2025 was 15.15%, a ...

Group 1 - Hingham Institution for Savings (NASDAQ: HIFS) has a notable history and has provided investors with a compound annual growth rate since the leadership transition to the Gaughen family in 1993 [1] - TQP Research employs a value-oriented investment strategy, focusing on identifying businesses that align with long-term success principles taught by renowned investors such as Warren Buffett and Charlie Munger [1] - The investment topics covered by TQP Research include market analysis, macroeconomic trends, large-cap blue chip companies, and undervalued micro-cap and small-cap stocks [1]

Core Financial Performance - Net income for the quarter ended June 30, 2025, was $9,414,000 or $4.32 per share basic and $4.28 per share diluted, representing a significant increase from $4,102,000 or $1.88 per share for the same period last year, marking a 127.7% increase in diluted net income per share [2][3] - Core net income for the same quarter was $7,453,000 or $3.42 per share basic and $3.39 per share diluted, compared to $2,181,000 or $1.00 per share for the same period last year, reflecting a 239.0% increase in diluted core net income per share [3] - For the six months ended June 30, 2025, net income was $16,538,000 or $7.58 per share basic and $7.52 per share diluted, up from $10,970,000 or $5.04 per share for the same period last year, indicating a 50.1% increase in diluted net income per share [4] Balance Sheet Highlights - Total assets increased to $4.539 billion at June 30, 2025, representing a 3.7% annualized growth year-to-date and a 0.4% increase from June 30, 2024 [7] - Net loans stood at $3.932 billion at June 30, 2025, reflecting a 3.0% annualized growth year-to-date and stable compared to June 30, 2024 [7] - Retail and commercial deposits were $1.998 billion at June 30, 2025, flat year-to-date but representing a 4.0% growth from June 30, 2024 [8] Operational Efficiency - The efficiency ratio improved to 41.17% for the second quarter of 2025, down from 68.57% for the same period last year, indicating enhanced operational efficiency [17] - Operating expenses as a percentage of average assets were stable at 0.68% for the second quarter of 2025, consistent with the prior quarter and slightly up from 0.67% for the same period last year [17] - The net interest margin increased to 1.66% for the quarter ended June 30, 2025, up from 1.50% in the previous quarter, marking the fifth consecutive quarter of expansion [14] Credit Quality - Non-performing assets totaled 0.70% of total assets as of June 30, 2025, compared to 0.04% at both December 31, 2024, and June 30, 2024 [15] - Non-performing loans as a percentage of the total loan portfolio were 0.81% at June 30, 2025, up from 0.04% at both December 31, 2024, and June 30, 2024 [15] - The Bank did not record any charge-offs in the first six months of 2025 or 2024, indicating stable credit quality [15] Shareholder Returns - Book value per share was $204.36 as of June 30, 2025, representing a 6.4% annualized growth year-to-date and a 6.8% increase from June 30, 2024 [12] - The Bank declared a regular cash dividend of $0.63 per share on June 25, 2025, marking the 126th consecutive quarterly dividend [12] - The Bank has a history of declaring special cash dividends, although none were declared in 2023 and 2024, with future dividends to be considered quarterly by the Board of Directors [13]

Financial Performance - The company achieved a 5-year Compound Annual Growth Rate (CAGR) of 11.3% in shareholder equity[19] - The company achieved a 5-year CAGR of 11.7% in loan growth[22] - The company achieved a 5-year CAGR of 6.5% in deposits[25] - The company's 2024 Efficiency Ratio was 63.79%[20] - The company's 2024 Operating Expenses/Total Average Assets was 67 bps[20] Business Strategy - The company focuses on Commercial and Personal Deposit Banking, Commercial Real Estate Lending, and Residential Real Estate Lending[6] - The company does not engage in Commercial and Industrial Lending, Consumer Lending, Investments, Insurance Brokerage or Underwriting, Secondary Market Residential Mortgage, Tax Credits, Solar Lending, Cannabis Banking, Cryptocurrency, or Commercial Mortgage Participations[8] - The company prioritizes organic growth, minority equity investments, dividends, and opportunistic share repurchases for capital allocation[10] Deposit Growth - The company focuses on personalized service, digital excellence, and low/no fees for deposit growth[29] - The company utilizes a Specialized Deposit Group (Private Client) and a Retail Banking Group for deposit growth[29] - The company is increasing its focus on commercial deposits through the Specialized Deposit Group[30] Challenges and Outlook - Key challenges include credit quality (Multifamily Outlook, Washington, D C , San Francisco), funding conditions (Stabilization of Margin, Growth in NIB Deposits, Liability Sensitivity), scaling the Specialized Deposit Group, and process improvement[33]

Financial Data and Key Metrics Changes - The company reported earnings of $28.2 million for the previous year, which is an improvement compared to 2023 but still considered unsatisfactory relative to historical returns on equity, which have typically been in the low to mid-teens [53][57] - The return on shareholder equity has been lower in the last two years compared to historical averages, although it remains favorable compared to savings banks in Massachusetts [57][58] - The five-year compound annual growth rate (CAGR) in book value per share is 11.3%, which is high for the industry but comparatively low for the company [60] Business Line Data and Key Metrics Changes - The loan book did not grow last year and actually shrank slightly, with strong originations offset by significant payoffs in the construction and term books [66][79] - Checking deposits grew by 23% year-over-year, with an annualized growth rate of 30% in the first quarter of the current year [75][79] Market Data and Key Metrics Changes - The multifamily markets in Boston, Washington, and San Francisco are reported to be healthy, with low vacancy rates and steady rent growth, driven by supply constraints [81][82] - The company remains liability sensitive, with a focus on shorter-term rates falling, which could impact funding conditions [82] Company Strategy and Development Direction - The company aims to invest organically in the balance sheet and growth in loans and deposits, viewing this as the most attractive long-term return strategy [47][50] - The company has no plans for acquisitions, believing that they do not add value for owners or improve service to clients [51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by interest rate increases and yield curve inversion but emphasized the company's resilience and durability through historical challenges [29][30] - There is uncertainty regarding the impact of potential workforce reductions in the federal government on the economy, particularly in Washington, but current indicators show healthy rental increases and low vacancy rates [100][101] Other Important Information - The company has maintained a policy since 1993 of not making loans to insiders, viewing it as a way to eliminate risks associated with insider lending [106][112] - The company continues to focus on process improvement and eliminating waste as part of its operational strategy [84] Q&A Session All Questions and Answers Question: How does the federal workforce reduction impact the company? - Management discussed the uncertainty surrounding the federal workforce's future and its potential impact on the economy, particularly in multifamily housing demand, but noted that current indicators remain positive [100][101] Question: What are the company's thoughts on insider loans? - The company maintains a strict policy against insider loans, believing it is best to eliminate risks rather than mitigate them, and has confidence in the integrity of management teams at banks in which it invests [106][111]

Earnings Performance - Net income for the quarter ended March 31, 2025, was $7,124,000, or $3.27 per share basic and $3.24 per share diluted, compared to $6,868,000, or $3.17 per share basic and $3.13 per share diluted for the same period last year, reflecting a 3.5% increase in diluted earnings per share [2][3] - Core net income for the same quarter was $6,125,000, or $2.81 per share basic and $2.78 per share diluted, a significant increase of 175.2% compared to $2,213,000, or $1.02 per share basic and $1.01 per share diluted for the same period last year [3][4] Balance Sheet Highlights - Total assets increased to $4.523 billion at March 31, 2025, representing a 5.9% annualized growth year-to-date, but a 0.1% decline from March 31, 2024 [5] - Net loans increased to $3.924 billion at March 31, 2025, showing a 5.2% annualized growth year-to-date, with a 0.4% decline from March 31, 2024 [5] - Retail and commercial deposits rose to $2.066 billion at March 31, 2025, reflecting a 13.8% annualized growth year-to-date and a 9.2% growth from March 31, 2024 [6] Operational Metrics - The net interest margin for the quarter ended March 31, 2025, increased by 65 basis points to 1.50%, compared to 0.85% for the same period last year, driven by a decline in the cost of interest-bearing liabilities and an increase in the yield on interest-earning assets [13][14] - The efficiency ratio improved to 45.82% for the first quarter of 2025, down from 77.24% for the same period last year, indicating enhanced operational efficiency [17][23] Dividend Information - The Bank declared a regular cash dividend of $0.63 per share on March 26, 2025, marking the 125th consecutive quarterly dividend [11][12] - Since March 31, 2024, the Bank has declared a total of $2.52 in dividends per share [10] Credit Quality - Non-performing assets totaled 0.04% of total assets as of March 31, 2025, consistent with the previous year, while non-performing loans as a percentage of the total loan portfolio were 0.05% [15][16] - The Bank did not record any charge-offs in the first three months of 2025 or 2024, indicating strong credit quality [15]

Earnings Summary - Net income for the year ended December 31, 2024 was $28,191,000 or $12.95 per share basic and $12.85 per share diluted, an increase from $26,371,000 or $12.26 per share basic and $12.02 per share diluted in 2023, representing a 7% increase in diluted net income per share [2][22] - Core net income for 2024 was $12,304,000 or $5.65 per share basic and $5.61 per share diluted, down from $14,539,000 or $6.76 per share basic and $6.63 per share diluted in 2023, indicating a 15% decrease in core net income per share [3][22] - For the fourth quarter of 2024, net income was $11,375,000 or $5.22 per share basic and $5.16 per share diluted, compared to $6,315,000 or $2.93 per share basic and $2.89 per share diluted in the same quarter of 2023, marking a 79% increase in diluted net income per share [4][22] Balance Sheet Overview - Total assets decreased to $4.458 billion at December 31, 2024, a 1% decline from December 31, 2023 [7] - Net loans also decreased to $3.874 billion at December 31, 2024, a 1% decline from the previous year, attributed to lower loan originations [8] - Retail and business deposits grew to $1.997 billion at December 31, 2024, representing a 7% increase from December 31, 2023, with non-interest-bearing deposits increasing by 17% to $397.5 million [9][10] Operational Performance Metrics - The net interest margin for the fourth quarter of 2024 increased by 17 basis points to 1.24%, driven by a decline in the cost of interest-bearing liabilities [15] - The efficiency ratio improved to 52.30% for the fourth quarter of 2024, down from 71.58% in the same period last year, indicating enhanced operational efficiency [18][22] - Non-performing assets remained stable at 0.03% of total assets, with non-performing loans at 0.04% of the total loan portfolio, unchanged from the previous year [16][17] Management Commentary - The Chairman noted that returns on equity and assets in 2024 were lower than long-term expectations due to challenges from rising interest rates and an inverted yield curve [20] - The Bank is focused on improving its deposit relationships and recruiting talented relationship managers, particularly in competitive markets [21][22] - The management emphasized a commitment to careful capital allocation, defensive underwriting, and disciplined cost control to navigate economic cycles [22]

Core Points - Hingham Institution for Savings has declared a regular quarterly cash dividend of $0.63 per share, to be paid on January 15, 2025, to stockholders of record as of January 6, 2025 [1] - The Bank's returns on equity and assets in 2024 have been significantly lower than long-term performance due to challenges from increased short-term interest rates and a historically long inversion of the yield curve [2] - The Bank's core business has faced challenges, but investment operations have helped sustain growth in book value per share [2] - The Bank emphasizes careful capital allocation, defensive underwriting, and disciplined cost control as essential strategies for compounding shareholder capital through economic cycles [3] - This marks the 124th consecutive quarterly dividend declared by the Bank, which has also typically declared special cash dividends for the past twenty-nine years, although none were declared in 2023 and 2024 [3] - The Bank is focusing on reinvesting incremental capital to support lending at attractive pricing given the current environment and its capital generation capacity [3] - Established in 1834, Hingham Institution for Savings is one of the oldest banks in America, with offices in multiple major cities [4]

Earnings Performance - Net income for Q3 2024 was $5,846,000, or $2.68 per share basic, representing a 77% increase from $3,297,000 or $1.53 per share basic in Q3 2023 [2][3] - Core net income for Q3 2024 was $3,163,000, or $1.45 per share basic, up from $2,895,000 or $1.35 per share basic in Q3 2023, marking a 9% increase [3] - For the nine months ended September 30, 2024, net income was $16,816,000, or $7.73 per share basic, down 16% from $20,056,000 or $9.33 per share basic in the same period last year [4] Balance Sheet Highlights - Total assets as of September 30, 2024, were $4.450 billion, reflecting a 1% annualized decline year-to-date but a 2% growth from the previous year [7] - Net loans stood at $3.863 billion, showing a 2% annualized decline year-to-date and a 1% growth from September 30, 2023 [8] - Retail and business deposits reached $1.977 billion, representing an 8% annualized growth year-to-date and a 3% increase from the previous year [9] Operational Metrics - The net interest margin for Q3 2024 increased to 1.07%, up from 0.96% in Q2 2024, driven by higher yields on earning assets [16] - The efficiency ratio improved to 62.19% in Q3 2024, down from 68.57% in the prior quarter, indicating enhanced operational efficiency [19] - Non-performing assets were 0.04% of total assets as of September 30, 2024, compared to 0.03% at December 31, 2023, and 0.00% at September 30, 2023 [17] Dividend Information - The Bank declared a regular cash dividend of $0.63 per share on September 25, 2024, marking the 123rd consecutive quarterly dividend [14] - Since September 30, 2023, the Bank has declared a total of $2.52 in dividends per share [13] Market Position and Strategy - The Bank continues to focus on developing deposit relationships with new and existing customers, particularly in Boston, Washington, and San Francisco [10] - The Chairman noted that the business model is designed to compound shareholder capital through economic cycles, emphasizing careful capital allocation and disciplined cost control [20][21]