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]

Core Financial Performance - Core net income for Q2 2024 was $2,181,000 or $1.00 per share diluted, a decrease of 46% from $4,046,000 or $1.88 per share diluted in Q2 2023 [2] - For the first six months of 2024, core net income was $4,395,000 or $2.01 per share diluted, down 55% from $9,791,000 or $4.46 per share diluted in the same period last year [3] - Net income for Q2 2024 was $4,102,000 or $1.88 per share diluted, compared to $8,248,000 or $3.76 per share diluted in Q2 2023, reflecting a 50% decrease [41] Asset Growth and Composition - Total assets increased to $4.521 billion as of June 30, 2024, representing 2% annualized growth year-to-date and 5% growth from June 30, 2023 [4] - Net loans were $3.933 billion at June 30, 2024, showing 1% annualized growth year-to-date and 5% growth from June 30, 2023 [52] Deposit and Funding Strategy - Retail and business deposits reached $1.921 billion at June 30, 2024, reflecting 6% annualized growth year-to-date and stable from June 30, 2023 [9] - Wholesale funds totaled $2.146 billion at June 30, 2024, representing a 3% annualized decline year-to-date but a 9% increase from June 30, 2023 [10] Interest Margin and Efficiency - The net interest margin for Q2 2024 increased to 0.96%, up from 0.85% in Q1 2024, marking the first expansion since early 2022 [7] - The efficiency ratio improved to 68.57% for Q2 2024, down from 77.24% in the prior quarter but up from 55.03% in Q2 2023 [12] Dividend and Shareholder Returns - A regular cash dividend of $0.63 per share was declared on June 26, 2024, marking the 122nd consecutive quarterly dividend [6] - Book value per share was $191.34 as of June 30, 2024, representing 3% annualized growth year-to-date and from June 30, 2023 [25] Credit Quality - Non-performing assets totaled 0.04% of total assets as of June 30, 2024, compared to 0.03% at December 31, 2023 [26] - The allowance for credit losses to total loans was 0.68% as of June 30, 2024, consistent with prior periods [28]

Earnings Performance - Core net income for Q2 2024 was $2,181,000 or $1.00 per share diluted, a decrease of 46% from $4,046,000 or $1.85 per share diluted in Q2 2023 [1] - For the first six months of 2024, core net income was $4,395,000 or $2.01 per share diluted, down 55% from $9,791,000 or $4.46 per share diluted in the same period last year [2] - Net income for Q2 2024 was $4,102,000 or $1.88 per share diluted, compared to $8,248,000 or $3.76 per share diluted in Q2 2023, marking a 50% decrease [19] - For the first six months of 2024, net income was $10,970,000 or $5.01 per share diluted, down 34% from $16,759,000 or $7.63 per share diluted in the same period last year [20] Balance Sheet and Asset Quality - Net loans were $3.933 billion as of June 30, 2024, reflecting 1% annualized growth year-to-date and 5% growth from June 30, 2023 [3] - Total assets increased to $4.521 billion at June 30, 2024, representing 2% annualized growth year-to-date and 5% growth from June 30, 2023 [22] - The Bank maintained a strong asset quality with no delinquent or non-performing commercial real estate loans as of June 30, 2024 [9] Deposits and Funding - Retail and business deposits were $1.921 billion at June 30, 2024, showing 6% annualized growth year-to-date and stable from June 30, 2023 [23] - Non-interest-bearing deposits were $343.3 million at June 30, 2024, representing a 2% annualized growth year-to-date but a 6% decline from June 30, 2023 [23] - Wholesale funds totaled $2.146 billion at June 30, 2024, reflecting a 3% annualized decline year-to-date and 9% growth from June 30, 2023 [5] Operational Metrics - The net interest margin for Q2 2024 increased to 0.96%, up from 0.85% in Q1 2024, marking the first expansion since early 2022 [8] - The efficiency ratio decreased to 68.57% for Q2 2024, compared to 77.24% in the prior quarter, but increased from 55.03% for the same period last year [29] - Non-performing assets totaled 0.04% of total assets as of June 30, 2024, compared to 0.03% at December 31, 2023 [28] Dividends - The Bank declared a regular cash dividend of $0.63 per share on June 26, 2024, marking the 122nd consecutive quarterly dividend [26] - The Bank has historically declared special cash dividends but did not do so in 2023, with future dividends to be considered quarterly by the Board of Directors [7]

Pgiam Investment Thesis Hingham Institution for Savings (NASDAQ:HIFS) is in my opinion one of the finest financial establishments in the U.S. The bank has outstanding asset quality thanks to a laser focused approach to risk management and mitigation. The bank has also historically been one of the best performing financial institutions in the U.S. with 5Y average returns handily outperforming industry giants like Bank of America (BAC). While profitability has taken a hit over the last two years, I believ ...

HINGHAM, Mass., April 12, 2024 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ:HIFS), Hingham, Massachusetts announced results for the quarter ended March 31, 2024. Earnings Net income for the quarter ended March 31, 2024 was $6,868,000 or $3.17 per share basic and $3.13 per share diluted, as compared to $8,510,000 or $3.96 per share basic and $3.87 per share diluted for the same period last year. The Bank's annualized return on average equity for the first quarter of 2024 was 6.63%, and the ann ...