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2001 Fourth Quarter - Earnings
PRESS RELEASE
| FROM: |
Robert H. Gaughen, Jr., President Hingham Institution for Savings Hingham, MA (NASDAQ - HIFS) |
| DATE: | January 23, 2002 |
| CONTACT: | William M. Donovan, Jr., Vice President -Administration, (781) 749-2200 |
20% INCREASE IN NET INCOME
HINGHAM INSTITUTION FOR SAVINGS (NASDAQ - HIFS), Hingham, Massachusetts, announced its earnings for 2001. Net income for the yeart ended December 31, 2001 was $5,089,000 or $2.49 per share ($2.46 diluted) as compared to $4,227,000 or $2.07 per share ($2.06 diluted) in 2000. This represents a 20% increase in earnings. The trend in annual earnings was also reflected in the fourth quarter with $1,335,000 net income for the quarter ending December 31, 2001 ($0.64 per share diluted) compared to $1,151,000 for the quarter ending December 31, 2000 ($0.56 per share diluted). The Bank's return on equity for the year increased from 15.71% in 2000 to 15.95% in 2001. Its return on assets increased form 1.35% in 2000 to 1.43% in 2001. These results were produced by continued growth in the Bank's balance sheet, effective expense control and maintenance of a strong net interest margin.
Growth trends of recent years continued in 2001 with a 14% increase in total assets, an 11% increase in total deposits, and a 6% increase in total loans over those of December 31, 2000. Loan originations increased from $92,000,000 in 2000 to $105,000,000 in 2001.
Despite the recession in the national and local economies, asset quality levels remained stable. Indeed, at year end, the Bank had absolutely no nonperforming loans and no foreclosed property.
Commenting on these results, President and CEO Robert H. Gaughen, Jr. said "Our record earnings and very strong asset quality, in the face of rising unemployment and a struggling national economy, stand as clear testimony to the diligent efforts and good judgement of our Board, mamangement and staff."
Total assets as of Decemeber 31, 2001 were $386,181,000 as compared to $337,881,000 at December 31, 2000. Stockholders' equity increased form $29,501,000 on December 31, 2000 to $33,537,000 on December 31, 2001 with a concomitant increase in book value per share from $14.46 on December 31, 2000 to $16.38 on December 31, 2001.
Hingham Institution for Savings is a Massachusetts-chartered savings bank. Incorporated in 1834, it is the oldest financial institution headquartered in Hingham and one of the oldest in Massachusetts. The Bank's main offices are located on Main Street, Hingham, Massachusetts 02043, phone (781) 749-2200. The Bank also maintains branch offices in South Hingham and the neighboring towns of Cohasset, Hull, Scituate, and Weymouth.
The Bank's shares of common stock are listed and traded on The Nasdaq Stock Market under the symbol HIFS.
Page 1 of 3
_______________________________________
| Consolidated Balance Sheets | ||
|
($ in thousands except per share amounts) |
December 31 , | December 31, |
|
(Unaudited) |
2001 | 2000 |
|
ASSETS |
||
|
Cash and due from banks |
$7,417 | $6,989 |
|
Interest-bearing deposits |
33,740 | 14,243 |
|
Cash and cash equivalents |
41,157 | 21,232 |
| Certificates of deposit | 970 | - |
|
Securities available for sale, at fair value |
46,619 | 39,440 |
|
Loans, net of allowance for loan losses of |
||
|
$2,510,000 in 2001 and $2,272,000 in 2000 |
283,386 | 266,568 |
|
Banking premises and equipment, net |
3,801 | 3,178 |
|
Accrued interest receivable |
1,978 | 2,057 |
|
Deferred income tax asset, net |
793 | 988 |
|
Federal Home Loan Bank stock, at cost |
4,841 | 4,019 |
|
Other Assets |
636 | 399 |
|
Total assets |
$386,181 | $337,881 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||
|
Deposits |
$249,589 | $225,510 |
|
Federal Home Loan Bank advances |
96,827 | 77,887 |
|
Other borrowed funds |
134 | 204 |
|
Mortgagors' escrow accounts |
1,088 | 1,052 |
|
Accrued interest payable |
404 | 414 |
|
Other liabilities |
4,221 | 3,313 |
|
Total liabilities |
352,644 | 308,380 |
|
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: 2,047,250 |
||
|
and 2,040,750 at December 31, 2000, respectively |
2,047 | 2,041 |
|
Additional paid-in capital |
8,891 | 8,809 |
|
Undivided profits |
21,924 | 18,394 |
|
Accumulated other comprehensive income(loss) |
675 | 257 |
|
Total stockholders' equity |
33,537 | 29,501 |
|
Total liabilities and stockholders' equity |
$386,181 | $337,881 |
|
Book value per share |
$16.38 | $14.46 |
|
Return on average equity |
15.95% | 15.17% |
Page 2 of 3
_______________________________________
| Consolidated Balance Sheets | ||
|
($ in thousands except per share amounts) |
December 31 , | December 31, |
|
(Unaudited) |
2001 | 2000 |
|
ASSETS |
||
|
Cash and due from banks |
$7,417 | $6,989 |
|
Interest-bearing deposits |
33,740 | 14,243 |
|
Cash and cash equivalents |
41,157 | 21,232 |
| Certificates of deposit | 970 | - |
|
Securities available for sale, at fair value |
46,619 | 39,440 |
|
Loans, net of allowance for loan losses of |
||
|
$2,510,000 in 2001 and $2,272,000 in 2000 |
283,386 | 266,568 |
|
Banking premises and equipment, net |
3,801 | 3,178 |
|
Accrued interest receivable |
1,978 | 2,057 |
|
Deferred income tax asset, net |
793 | 988 |
|
Federal Home Loan Bank stock, at cost |
4,841 | 4,019 |
|
Other Assets |
636 | 399 |
|
Total assets |
$386,181 | $337,881 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||
|
Deposits |
$249,589 | $225,510 |
|
Federal Home Loan Bank advances |
96,827 | 77,887 |
|
Other borrowed funds |
134 | 204 |
|
Mortgagors' escrow accounts |
1,088 | 1,052 |
|
Accrued interest payable |
404 | 414 |
|
Other liabilities |
4,221 | 3,313 |
|
Total liabilities |
352,644 | 308,380 |
|
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: 2,047,250 |
||
|
and 2,040,750 at December 31, 2000, respectively |
2,047 | 2,041 |
|
Additional paid-in capital |
8,891 | 8,809 |
|
Undivided profits |
21,924 | 18,394 |
|
Accumulated other comprehensive income(loss) |
675 | 257 |
|
Total stockholders' equity |
33,537 | 29,501 |
|
Total liabilities and stockholders' equity |
$386,181 | $337,881 |
|
Book value per share |
$16.38 | $14.46 |
|
Return on average equity |
15.95% | 15.17% |
Page 2 of 3
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Consolidated Statements
of Income
|
||||
|
(In Thousands, Except for Per Share Amounts) |
Three Months Ended December 31 |
Twelve Months
Ended December 31, |
||
|
(Unaudited) |
2001 | 2000 | 2001 | 2000 |
|
Interest and dividend income: |
||||
|
Loans |
$5,636 | $5,491 | $22,793 | $20,726 |
|
Investment securities |
634 | 692 | 2,563 | 2,599 |
|
Interest-bearing deposits |
152 | 159 | 685 | 621 |
|
Total interest and dividend income |
6,422 | 6,342 | 26,041 | 23,946 |
|
Interest expense: |
||||
|
Deposits |
1,824 | 2,114 | 8,145 | 7,829 |
|
Borrowed funds |
1,088 | 1,152 | 4,426 | 4,276 |
|
Total interest expense |
2,912 | 3,266 | 12,571 | 12,105 |
|
Net interest income |
3,510 | 3,076 | 13,470 | 11,841 |
|
Provision for loan losses |
60 | 90 | 240 | 284 |
|
Net interest income after provision for loan losses |
3,450 | 2,986 | 13,230 | 11,557 |
|
Other income: |
||||
|
Customer service fees on deposits |
180 | 194 | 704 | 686 |
| Gain on sale of loans and securities available for sale | - | - | 134 | - |
| Other | 64 | 63 | 187 | 172 |
| Total other income | 244 | 257 | 1,025 | 858 |
| Operating expenses: | ||||
| Salaries and employee benefits | 969 | 837 | 3,740 | 3,367 |
| Data processing | 143 | 148 | 551 | 501 |
| Occupancy and equipment | 177 | 168 | 721 | 711 |
| Legal | 3 | 10 | 14 | 31 |
| Other | 389 | 411 | 1,541 | 1,458 |
| Total operating expenses | 1,681 | 1,574 | 6,567 | 6,068 |
| Income before income taxes | 2,013 | 1,669 | 7,688 | 6,347 |
| Income tax provision | 678 | 518 | 2,599 | 2,120 |
| Net income | $1,335 | $1,151 | $5,089 | $4,227 |
| Cash dividends declared per common share | $0.31 | $0.28 | $0.76 | $0.68 |
| Weighted average shares outstanding: | ||||
| Basic | 2,045 | 2,041 | 2,045 | 2,041 |
| Diluted | 2,074 | 2,057 | 2,071 | 2,055 |
| Earnings per share: | ||||
| Basic | $0.65 | $0.56 | $2.49 | $2.07 |
| Diluted | $0.64 | $0.56 | $2.49 | $2.06 |
