PRESS RELEASE
| FROM: |
Robert
H. Gaughen, Jr., President Hingham Institution for Savings Hingham, MA (NASDAQ - HIFS) |
| DATE: | April 18, 2000 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749-2200 |
31% INCREASE IN EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (NASDAQ - HIFS), Hingham, Massachusetts, announced first quarter results highlighted by a 31% surge in net income over that of the same quarter last year. The Bank also announced substantial increases in loans, deposits, and stockholders' equity.
President Robert H. Gaughen, Jr. stated "Earnings for the first quarter of 2000 were $984,000 or $0.48 per share as compared with $751,000 or $0.38 per share for the first quarter of 1999. This increase is primarily the result of significant growth in net interest income. Additionally, we also benefited from increased fee income and improved tax planning. We are encouraged by the fact that these earnings contain no nonrecurring items and are simply a reflection of the expansion of our core earnings capacity."
On March 31, 2000, net loans totaled $241,695,000, an increase of $30,677,000 or 14.5% from March 31, 1999.
Deposits grew to a total of $200,722,000 on March 31, 2000, an increase of $17,937,000 or 9.8% from March 31, 1999.
Total assets as of March 31, 2000 were $303,207,000 as compared to $268,365,000 on March 31, 1999, and stockholders' equity was $26,794,000 as compared to $24,173,000 on March 31, 1999.
The Bank's first quarter earnings performance represents an annualized Return on Equity of 14.76%.
Hingham Institution for Savings is a Massachusetts-chartered savings bank located in Hingham, Massachusetts. Incorporated in 1834, it is the oldest financial institution headquartered in Hingham and one of the oldest in Massachusetts. The Bank's main offices are located on Main Street, Hingham, Massachusetts 02043, phone (781) 749-2200. The Bank also maintains branch offices in South Hingham and the neighboring towns of Cohasset, Hull, Scituate, and Weymouth.
The Bank's shares of common stock are listed and traded on The Nasdaq Stock Market under the symbol HIFS.
Page 1 of 3
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| Consolidated Balance Sheets | ||
|
($ in thousands except per share amounts) |
March 31, | March 31, |
|
(Unaudited) |
2000 | 1999 |
|
ASSETS |
||
|
Cash and due from banks |
$4,927 | $4,086 |
|
Interest-bearing deposits |
8,966 | 15,818 |
|
Cash and cash equivalents |
13,893 | 19,904 |
|
Securities available for sale, at fair value |
37,377 | 27,563 |
|
Loans, net of allowance for loan losses of |
||
|
$2,042,000 in 2000 and $1,791,000 in 1999 |
241,695 | 211,018 |
|
Banking premises and equipment, net |
3,335 | 3,402 |
|
Accrued interest receivable |
1,748 | 1,458 |
|
Deferred income tax asset, net |
1,180 | 950 |
|
Federal Home Loan Bank stock, at cost |
3,622 | 2,949 |
|
Other Assets |
357 | 1,121 |
|
Total assets |
$303,207 | $268,365 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||
|
Deposits |
$200,722 | $182,785 |
|
Federal Home Loan Bank advances |
72,431 | 58,986 |
|
Other borrowed funds |
50 | 52 |
|
Mortgagors' escrow accounts |
1,021 | 817 |
|
Accrued interest payable |
375 | 312 |
|
Other liabilities |
1,814 | 1,240 |
|
Total liabilities |
276,413 | 244,192 |
|
Commitments and contingencies |
-- | -- |
|
|
||
|
Stockholders' equity: |
||
|
Preferred stock, $1.00 par value, |
||
|
2,500,000 shares authorized; none issued |
-- | -- |
|
Common stock, $1.00 par value, 5,000,000 shares |
||
|
authorized; shares issued and outstanding: 2,040,750 at |
||
|
March 31, 2000 and 1,964,250 at March 31, 1999 |
2,041 | 1,964 |
|
Additional paid-in capital |
8,809 | 8,154 |
|
Undivided profits |
16,277 | 14,005 |
| Accumulated other comprehensive income (loss) | (333) | 50 |
|
Total stockholders' equity |
26,794 | 24,173 |
|
Total liabilities and stockholders' equity |
$303,207 | $268,365 |
| Book value per share | $13.13 | $12.31 |
|
Return on average equity |
14.76% | 12.47% |
Page 2 of 3
_______________________________________
| Consolidated Statements of Income | ||
|
($ in thousands except per share amounts) |
Three
Months Ended March 31, |
|
|
(Unaudited) |
2000 | 1999 |
|
Interest and dividend income: |
||
|
Loans |
$4,844 | $4,236 |
|
Investment securities |
622 | 443 |
|
Interest-bearing deposits |
111 | 139 |
|
Total interest and dividend income |
5,577 | 4,818 |
|
Interest expense: |
||
|
Deposits |
1,749 | 1,630 |
|
Borrowed funds |
1,002 | 760 |
|
Total interest expense |
2,751 | 2,390 |
|
Net interest income |
2,826 | 2,428 |
|
Provision for loan losses |
54 | 60 |
|
Net interest income after provision for loan losses |
2,772 | 2,368 |
|
Other income: |
||
|
Customer service fees on deposits |
156 | 129 |
| Other | 54 | 38 |
| Total other income | 210 | 167 |
| Operating expenses: | ||
| Salaries and employee benefits | 853 | 738 |
| Data processing | 111 | 99 |
| Occupancy and equipment | 188 | 165 |
| Legal | 6 | (1) |
| Other | 333 | 312 |
| Total operating expenses | 1,491 | 1,313 |
| Income before income taxes | 1,491 | 1,222 |
| Income tax provision | 507 | 471 |
| Net income | $984 | $751 |
| Cash dividends declared per common share | $0.13 | $0.11 |
| Weighted average shares outstanding | ||
| Basic | 2,041 | 1,964 |
| Diluted | 2,054 | 2,007 |
| Earnings per share: | ||
| Basic | $0.48 | $0.38 |
| Diluted | $0.48 | $0.37 |
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