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PRESS RELEASE
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | January 20 , 2005 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749.2200 |
9% INCREASE IN EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (Nasdaq - HIFS), Hingham, Massachusetts, announced its earnings for 2004. Net income for the year ended December 31, 2004 was $5,824,000 or $2.80 per share ($2.77 diluted) as compared to $5,354,000 or $2.58 per share ($2.56 diluted) in 2003. This represents a 9% increase in earnings. The trend in annual earnings was also reflected in the fourth quarter with $1,530,000 net income for the quarter ending December 31, 2004 ($0.73 per share diluted) compared to $1,494,000 for the quarter ending December 31, 2003 ($0.71 per share diluted). The Bank's return on average equity for the year increased to a strong 13.56%, and the return on assets was 1.14%
Growth trends of recent years continued in 2004 with a 13% increase in total assets, a 15% increase in total deposits, and a 16% increase in total loans over those of December 31, 2003. Asset quality continued to remain strong. As of December 31, 2004, the Bank had no foreclosed property, and nonperforming loans included only one loan representing a minimal 0.03% of total assets.
President Robert H. Gaughen, Jr. stated, "While our enviable earnings remain strong, the financial industry continues to experience the pressures associated with margin compression. We have been successful in mitigating these pressures by our continued ability to increase our loan portfolio. We continue our focus on the effective execution of a relatively simply strategy. Quality service, consistent growth and effective cost control produce extraordinary results."
Total assets as of December 31, 2004 were $547,051,000
as compared to $483,954,000 at December 31, 2003. Stockholders' equity
increased from $40,913,000 on December 31, 2003 to $44,323,000 on December
31, 2004 with a concomitant increase in book value per share from $19.68
on December 31, 2003 to $21.29 on December 31, 2004.
