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PRESS RELEASE
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | July 20, 2006 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749.2200 |
BANK ANNOUNCES QUARTERLY EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (Nasdaq - HIFS), Hingham, Massachusetts announced second quarter earnings for 2006. Net income for the quarter ended June 30, 2006 was $1,109,000 or $0.52 per share as compared to net income of $1,568,000 or $0.75 per share for the same period last year.
Assets at June 30, 2006 were $663,053,000 and represented a 13% increase over June 30, 2005. Asset growth was most notable in the loan category which increased $71.6 million, or 16%, over the same period. Deposits increased to $391,782,000 at June 30, 2006, a 10% increase over the balance at June 30, 2005.
The annualized Return on Average Assets and Return on Average Equity for the quarter were .69% and 8.85% respectively.
Increases in capital were also noted and at June 30, 2006, the Bank reported book value per share of $23.68, a 6% increase from June 30, 2005.
President Robert H. Gaughen, Jr. stated "I'm pleased to report solid earnings despite the compression of the net interest margin that continues to challenge the banking industry. We have been successful in mitigating these pressures by our continued ability to expand our loan portfolio. Equally important, our asset quality remained exceptional. At quarter end, the Bank had only two nonperforming loans, one of which was paid in full in July 2006 resulting in no loss of principal or interest. The remaining smaller nonperforming loan represents no risk of loss. Earnings for the second quarter of 2006 were impacted by expenses relating to the Bank's new Boston branch which is scheduled to open this Fall. Additionally, the Federal Home Loan Bank, pursuant to new capital guidelines, delayed the declaration of their regular second quarter dividend resulting in a pretax negative impact to us of approximately $150,000. This dividend is expected to be declared during the third quarter of 2006."
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.
