HIFS 2002 First Quarter

HINGHAM INSTITUTION FOR SAVINGS (NASDAQ - HIFS), Hingham, Massachusetts, announced first quarter results highlighted by significant growth in earnings driven primarily by continued strong growth in the balance sheet.

President Robert H. Gaughen, Jr. announced that "Net income for the first quarter increased by 12% over that of the same quarter last year. Our earnings trend continues to be driven by our ability to expand our balance sheet. Our total deposits increased by 12%, and total loans increased by 9% over the last twelve months."

The net income of of $1,391,000, or $0.68 per share, for the first quarter represents a 12% increase over the $1,243,000, or $0.61 per share, for the first quarter of 2001. The net income for the first quarter of 2001 included $89,000 net after tax relating to the gain on the sale of securities. The Bank's total assets as of March 31, 2002 or $397,084,000 represents a 14% increase over the total of #348,293,000 on March 31, 2001.

Asset quality continued to remain strong. At the end of the first quarter of 2002, the Bank had no forclosed properties and no loans were 60 days or more in arrears. Asset quality levels remain the best in the Bank's history.

The annualized Return on Average Assets and Return on Average Equity for the first quarter of 2002 were 1.45% and 16.21% respectively. Book value per share was $16.74 as of March 31, 2002, and the Bank continued to merit the Federal Deposit Insurance Corporation's highest capital rating with a tier one capital ratio of 8.89%.

Additionally, the Board of Direstors recently voted to dissolve the Bank's defined benefit pension plan. The Bank anticipates that during the second quarter, a reversal of previous accurals relating to the plan is estimated to have a positive impact on earnings of approximately $86,000. Final distribution under the plan is anticipated to occur during the fourth quarter and may have an additional postive impact on earnings currently estimated at approximately $250,000.

The press release may contain statements relating to future results of the Bank (including certain projections) that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to changes in political and economic conditions, interest rate flucttuations, competitive product and pricing pressures within the Bank's market, bond market fluctions, personal and corporative customers' bankruptcies, and inflation, as well as other risks and uncertainties.

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.

Consolidated Balance Sheets
($ in thousands except per share amounts)	March 31 ,	March 31,
(Unaudited)	2002	2001
ASSETS
Cash and due from banks	$8,009	$7,839
Interest-bearing deposits	28,564	16,967
Cash and cash equivalents	36,573	24,806
Certificates of deposit	1,940	-
Securities available for sale, at fair value	47,063	38,018
Loans, net of allowance for loan losses of
$2,585,000 in 2002 and $2,332,000 in 2001	299,050	274,881
Banking premises and equipment, net	3,874	3,129
Accrued interest receivable	1,998	1,970
Deferred income tax asset, net	946	870
Federal Home Loan Bank stock, at cost	5,036	4,094
Other Assets	604	525
Total assets	$397,084	$348,293

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits	$256,923	$229,206
Federal Home Loan Bank advances	99,717	83,199
Other borrowed funds	191	14
Mortgagors' escrow accounts	1,278	1,218
Accrued interest payable	413	407
Other liabilities	4,114	3,509
Total liabilities	362,636	317,553

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: 2,057,250
and 2,045,250 at March 31, 2002 and 2001, respectively	2,057	2,045
Additional paid-in capital	9,027	8,857
Undivided profits	22,986	19,329
Accumulated other comprehensive income(loss)	378	509
Total stockholders' equity	34,448	30,740
Total liabilities and stockholders' equity	$397,084	$348,293

Book value per share	$16.74	$15.03
Return on average equity	16.21%	16.38%