HIFS 2000 Fourth Quarter

HINGHAM INSTITUTION FOR SAVINGS (Nasdaq - HIFS), Hingham, Massachusetts, announced its earnings for 2000. Net income for the year ended December 31, 2000 was $4,227,000 or $2.07 per share ($2.06 diluted) as compared to $3,246,000 or $1.65 per share ($1.62 diluted) in 1999. This represents a 30% increase in earnings. The trend in annual earnings was also reflected in the fourth quarter with $1,151,000 net income for the quarter ending December 31, 2000 compared to $870,000 for the quarter ending December 31, 1999. The Bank's return on equity increased from 13.07% in 1999 to $15.17% in 2000. Its return on assets increased from 1.19% in 1999 to 1.35% in 2000. These results were prodced by accelerating growth patterns in the Bank's balance sheet, continued expense control efforts and effective tax planning.

Deposits increased by $31,996,000 or 17% in 2000 compared to a $14,773,000 or 8% increase in 1999.

The Bank achieved a similar increase in its loan portfolio of $36,881,000 or 16% as compared to a $24,913,000 or 12% increase in 1999. Loan originations increased from $87,391,000 in 1999 to $92,260,000 in 2000.

Commenting on these results, President and CEO Robert H. Gaughen, Jr. said "These results confirm our position as one of the fastest growing and most profitable financial institutions in our marketplace. Our management group and staff have acted together to take advantage of our franchise in the attractive coastal cities and towns of the South Shore and the desire of families and businesses for access to a competent, community-based banking alternative."

Asset quality also continued to improve from an already high level. At year end 2000, nonperforming loans totaled 0.03% of total assets as compared to 0.33% at year end 1999.

The Bank's cost control efforts also resulted in one of the lowest (best) efficiency ratios of Massachusetts banks: 48% versus an approximate 63% for all state-chartered banks.

Total assets as of December 31, 2000 were $337,881,000 as compared to $291,183,000 at December 31, 1999. Stockholders' equity increased from $26,181,000 on December 31, 1999 to $29, 501,000 on December 31, 2000 with a concomitant increase in book value per share from $12.83 to $14.46 on December 31, 2000.

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 the Commonwealth. 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.

Consolidated Balance Sheets
($ in thousands except per share amounts)	December 31,	December 31,
(Unaudited)	2000	1999
ASSETS
Cash and due from banks	$6,989	$6,236
Interest-bearing deposits	14,243	9,755
Cash and cash equivalents	21,232	15,991

Securities available for sale, at fair value	39,440	35,532
Loans, net of allowance for loan losses of
$2,272,000 in 2000 and $1,976,000 in 1999	266,568	229,687
Banking premises and equipment, net	3,178	3,397
Accrued interest receivable	2,057	1,642
Deferred income tax asset, net	988	1,172
Federal Home Loan Bank stock, at cost	4,019	3,423
Other Assets	399	339
Total assets	$337,881	$291,183

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits	$225,510	$193,514
Federal Home Loan Bank advances	77,887	68,445
Other borrowed funds	204	248
Mortgagors' escrow accounts	1,052	870
Accrued interest payable	414	358
Other liabilities	3,313	1,567
Total liabilities	308,380	265,002

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; 2,040,750 shares issued and
outstanding at December 31, 2000 and at December 31,1999	2,041	2,041
Additional paid-in capital	8,809	8,809
Undivided profits	18,394	15,559
Accumulated other comprehensive income	257	(228)
Total stockholders' equity	29,501	26,181
Total liabilities and stockholders' equity	$337,881	$291,183

Book value per share	$14.46	$12.83
Return on average equity	15.17%	13.07%