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2002 Second Quarter Earnings
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | July 17, 2002 |
| CONTACT: | William M. Donovan, Jr., Vice President-Administration |
| (781) 749-2200 |
amp;namp;n
21% INCREASE IN NET INCOME
HINGHAM INSTITUTION FOR SAVINGS (NASDAQ-HIFS), Hingham, Massachusetts, announced second quarter results highlighted by significant growth in earnings driven primarily by strong growth in the balance sheet.
President Robert H. Gaughen, Jr. announced that "Net income for the second quarter increased by 21% over that of the same quarter last year. This trend continues to be driven primarily by our ability to expand our balance sheet. Our total deposits increased by 8%, and total loans increased by 10% over the last twelve months."
The net income of $1,493,000,
or $0.73 per share (basic), for the second quarter represents a 21% increase
over the $1,229,000, or $0.60 per share (basic), for the second quarter
of 2001. The Bank's total assets as of June 30, 2002 of $404,026,000 represent
a 12% increase over the total of $359,783,000 on June 30, 2001.
Despite conditions in the general economy, asset quality continued to
remain strong. For the third consecutive quarter end, the Bank had no
foreclosed properties and no loans classified as nonperforming. Additionally,
the Bank's investment portfolio at quarter end contained a net unrealized
gain of $669,000.
The annualized Return on Average Assets and Return on Average Equity for the second quarter of 2002 were 1.49% and 16.84% respectively. Book value per share was $17.46 as of June 30, 2002, and the Bank continued to merit the Federal Deposit Insurance Corporation's highest capital rating with a tier one capital ratio of 8.84%.
The net interest margin for the quarter ended June 30, 2002 was 4.01% as compared to 3.96% for the quarter ended June 30, 2001.
As previously announced, a reversal of previous accruals related to dissolving the Bank's defined benefit pension plan had a positive impact on earnings of $86,000 for the quarter ended June 30, 2002. Final distribution under the plan is anticipated to occur during the fourth quarter and may have an additional positive impact on earnings currently estimated at approximately $250,000.
This 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 fluctuations, competitive product and pricing pressures within the Bank's market, bond market fluctuations, personal and corporate 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 Statements of Income
