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FROM: amp;n Robert H. Gaughen, Jr., President
amp;namp;namp;namp;n Hingham Institution
for Savings
amp;namp;namp;namp;n Hingham, MA (NASDAQ-HIFS)
DATE: amp;n July 21, 2003
CONTACT: William M. Donovan, Jr., Vice President (781) 749.2200
EARNINGS INCREASE FOR SECOND QUARTER
HINGHAM INSTITUTION FOR SAVINGS (NASDAQ - HIFS), Hingham, Massachusetts, today announced an increase in second quarter net income for 2003. Net income for the quarter ended June 30, 2003 was $2,130,000 or $1.03 per share (basic) representing an increase over net income of $1,493,000 or $0.73 per share (basic) for the same period last year.
As previously announced, during the second quarter of 2003 the Bank recognized a $700,000 credit to the provision for income taxes due to the settlement of a tax dispute with the Massachusetts Department of Revenue. This credit reduced a charge of $1.4 million recorded for income taxes during the first quarter of 2003. Legislation signed by the Governor of Massachusetts on March 5, 2003 changed tax laws retroactive to 1999. These changes have increased the Bank's effective tax rate from approximately 34% in 2002 to approximately 39% in 2003.
Second quarter 2002 results included a nonrecurring $130,000 credit pertaining to the dissolution of the Bank's defined benefit pension plan. After adjusting for the 2002 pension benefit, pretax net income for 2003 represents a 10% increase over that of 2002.
The Bank's total assets as of June 30, 2003 of $459,806,000 represent a 14% increase over the total of $404,026,000 on June 30, 2002. At June 30, 2003, loans were $343,917,000, an increase of 12% over June 30, 2002. There were $51,485,000 of loans originated during the second quarter of 2003.
Asset quality continued to remain
strong. At the end of the second quarter of 2003, the Bank had no foreclosed
properties, and nonperforming loans totaled only 0.09% of total assets.
Book value per share was $19.06 as of June 30, 2003, representing a 9%
increase from June 30, 2002.
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
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