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PRESS RELEASE
FROM: amp;n Robert H. Gaughen, Jr., President
amp;namp;namp;n Hingham Institution for
Savings
amp;namp;namp;n Hingham, MA (Nasdaq B
HIFS)
DATE: amp;n April 23, 2003
CONTACT: William M. Donovan, Jr., Vice President (781) 749-2200
BANK ANNOUNCES QUARTERLY EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (Nasdaq - HIFS), Hingham, Massachusetts, announced first quarter results highlighted by continued growth in pretax earnings although a one-time charge to current state income taxes caused net income to decrease compared to the comparable period of 2002. The Bank continued to achieve strong growth in its balance sheet with significant increases in both deposits and loans.
Pretax earnings for the first quarter ended March 31, 2003 were $2,558,000 representing a 22% increase over pretax earnings of $2,100,000 for the same period last year. The first quarter 2003 pretax earnings included $439,000 in gains on sale of securities; however net income for the first quarter ended March 31, 2003 was $197,000 or $0.10 per share (basic) as compared to net income of $1,391,000 or $0.68 per share (basic) for the same period last year.
President Robert H. Gaughen, Jr. stated that "As previously announced, net income for the first quarter of 2003 was impacted by a charge against current earnings of $1.4 million in state income taxes, net of federal tax deductions, arising from a retroactive change to Massachusetts tax law pertaining to dividends from real estate investment trusts. The Bank questions the constitutionality of the retroactive legislation and intends to vigorously challenge the retroactive nature of the law. Earnings from our underlying core business remain quite strong."
The Bank's total assets as of March 31, 2003 of $433,227,000 represent a 9.1% increase over the total of $397,084,000 on March 31, 2002. At March 31, 2003, loans were $330,541,000, an increase of 11% over March 31, 2002. There were $48,300,000 of loans originated during the first quarter of 2003.
Asset quality continued to remain strong. At the end of the first quarter
of 2003, the Bank had no foreclosed properties, and nonperforming loans
totaled 0.17% of total assets.
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.
