Hingham Savings Reports Second Quarter 2025 Results

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]