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PRESS RELEASE
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | January 24 , 2006 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749.2200 |
6% INCREASE IN EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (Nasdaq - HIFS), Hingham, Massachusetts announced its earnings for 2005. Net income for the year ended December 31, 2005 was $6,171,000 or $2.95 per share ($2.92 diluted) as compared to $5,824,000 or $2.80 per share ($2.77 diluted) in 2004. This represents a 6% increase in net income. While earnings for the year increased by 6%, fourth quarter earnings were increased only slightly with $1,545,000 net income for the quarter ended December 31, 2005 ($0.73 per share diluted) compared to $1,530,000 for the quarter ended December 31, 2004 ($0.73 per share diluted). The Bank's return on average equity for 2005 was a strong 13.20%, and the return on average assets was 1.07%.
Growth trends of recent years continued in 2005 with a 15% increase in total assets, a 9% increase in total deposits, and a 17% increase in total loans over those of December 31, 2004. Asset quality continued to remain strong. As of December 31, 2005, 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, "Our earnings remain strong. Nonetheless, the financial industry continues to experience the pressures associated with margin compression and a flattened yield curve. 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 simple strategy. Our challenge in 2006 will be to maintain our quality growth and effective cost control in an especially challenging interest rate environment."
Total assets as of December 31, 2005 were $628,251,000 as compared to $547,051,000 at December 31, 2004. Stockholders' equity increased from $44,323,000 on December 31, 2004 to $48,458,000 on December 31, 2005 with a concomitant increase in book value per share from $21.29 on December 31, 2004 to $23.01 on December 31, 2005.
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.
