Hingham Savings Reports 2024 Results

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]