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FROM: amp;n Robert H. Gaughen, Jr., President
amp;namp;namp;n Hingham Institution for
Savings
amp;namp;namp;n Hingham, MA (NASDAQ-HIFS)
DATE: amp;n January 22, 2003
CONTACT: William M. Donovan, Jr., Vice President (781) 749.2200
18% INCREASE IN EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (Nasdaq - HIFS), Hingham, Massachusetts, announced its earnings for 2002. Net income for the year ended December 31, 2002 was $5,980,000 or $2.91 per share ($2.87 diluted) as compared to $5,089,000 or $2.49 per share ($2.46 diluted) in 2001. This represents an 18% increase in earnings. After-tax earnings were positively impacted by $372,000 as a result of the termination of the Bank's Defined Benefit Pension Plan. The trend in annual earnings was also reflected in the fourth quarter with $1,770,000 net income for the quarter ending December 31, 2002 ($0.85 per share diluted) compared to $1,335,000 for the quarter ending December 31, 2001 ($0.64 per share diluted). The Bank's return on equity for the year increased from 15.95% in 2001 to 16.58% in 2002. Its return on assets increased from 1.43% in 2001 to 1.48% in 2002. These results were produced by continued growth in the Bank's balance sheet, effective expense control, maintenance of a strong net interest margin, and pension plan termination.
Growth trends of recent years continued in 2002 with a 10% increase in total assets, a 10% increase in total deposits, and a 14% increase in total loans over those of December 31, 2001. Loan originations increased from $105,000,000 in 2001 to $159,000,000 in 2002.
President Robert H. Gaughen, Jr.
stated "We continue our focus on the effective execution of a relatively
simple strategy. Quality service, consistent growth, and effective cost
control produce extraordinary results."
Total assets as of December 31, 2002 were $426,430,000 as compared to
$386,181,000 at December 31, 2001. Stockholders' equity increased from
$33,537,000 on December 31, 2001 to $38,202,000 on December 31, 2002 with
a concomitant increase in book value per share from $16.38 on December
31, 2001 to $18.48 on December 31, 2002.
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.
