 |
 |
 |
 |
 |
PRESS RELEASE
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | January 22, 2004 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749.2200 |
HINGHAM SAVINGS ANNOUNCES 2003 EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (NASDAQ - HIFS), Hingham, Massachusetts, announced its earnings for 2003. Net income for the year ended December 31, 2003 was $5,354,000 or $2.58 per share ($2.56 diluted) as compared to $5,980,000 or $2.91 per share ($2.87 diluted) in 2002. As previously announced during 2003, the Bank recognized a $700,000 net charge for income taxes relating to the settlement of a tax dispute with the Massachusetts Department of Revenue. Legislation signed by the Governor of Massachusetts during 2003-changed tax laws retroactive to 1999. These changes increased the Bank's ongoing effective tax rate from approximately 34% in 2002 to approximately 38% in 2003. Pre-tax earnings for the year ended December 31, 2003 were $9,769,000 as compared to $9,070,000 in 2002. This represents an 8% increase in pre-tax earnings.
These results were produced by continued growth in the Bank's balance sheet, increase in net interest income, maintenance of a strong net interest margin, and effective expense control.
Growth trends of recent years continued in 2003 with a 13% increase in total assets, a 6% increase in total deposits, and a 12% increase in total loans over those of December 31, 2002. Loan originations increased from $159,000,000 in 2002 to $204,000,000 in 2003. Asset quality continued to remain strong. As of December 31, 2003, the Bank had no foreclosed property, and nonperforming loans included only one loan representing a minimal 0.04% of total assets.
President Robert H. Gaughen, Jr. stated, "We had a great year in total loan originations and deposit growth. Despite numerous nonrecurring factors of both income and expense, such as the termination of the Bank's Pension Plan in 2002 and the gains on sales of securities and settlement of a tax dispute with the State in 2003, we continue to achieve healthy increases in our core business."
Total assets as of December 31, 2003 were $483,954,000 as compared to
$426,430,000 at December 31, 2002. Stockholders' equity increased from
$38,202,000 on December 31, 2002 to $40,913,000 on December 31, 2003 with
a concomitant increase in book value per share from $18.48 on December
31, 2002 to $19.68 on December 31, 2003.
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.
