Hingham Savings Reports 2025 Results

Core Insights - Hingham Institution for Savings reported significant growth in net income for the year ended December 31, 2025, reaching $54.55 million, a 93.5% increase from $28.19 million in 2024, with diluted earnings per share rising to $24.76 from $12.85 [2][19] - The bank's return on average equity improved to 12.00% in 2025 from 6.68% in 2024, while return on average assets increased to 1.22% from 0.65% [2][22] - Core net income, excluding gains on equity securities, also saw a substantial increase of 159.9%, reaching $32.11 million in 2025 compared to $12.30 million in 2024 [3][19] Earnings Performance - For Q4 2025, net income was $20.72 million, up 82.0% from $11.38 million in Q4 2024, with diluted earnings per share increasing to $9.39 from $5.16 [4][29] - Core net income for Q4 2025 was $10.03 million, a 110.2% increase from $4.75 million in Q4 2024 [5][19] Balance Sheet Highlights - Total assets grew to $4.54 billion as of December 31, 2025, reflecting a 1.9% increase from $4.45 billion in 2024 [7][27] - Net loans increased to $3.90 billion, a 0.7% growth from $3.87 billion in 2024 [7][27] - Retail and commercial deposits reached $2.06 billion, up 2.9% from $2.00 billion in 2024, with non-interest-bearing deposits growing by 17.7% to $467.7 million [8][9] Operational Metrics - The net interest margin for Q4 2025 improved to 1.89%, up from 1.74% in Q3 2025, driven by lower costs of interest-bearing liabilities [13][22] - The efficiency ratio decreased to 35.06% in Q4 2025 from 52.30% in Q4 2024, indicating improved operational efficiency [16][22] Capital Management - Book value per share increased to $219.82, an 11.0% growth from $198.03 in 2024, with dividends declared totaling $3.22 per share since December 31, 2024 [12][19] - The bank received regulatory approval for a $20 million common equity repurchase program, indicating a focus on capital allocation [12][19] Credit Quality - Non-performing assets as a percentage of total assets rose to 0.69% from 0.03% in 2024, with the bank actively managing a commercial real estate loan placed on nonaccrual [14][19] - The allowance for credit losses was 0.73% of total loans as of December 31, 2025, compared to 0.69% in 2024 [24][19]