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PRESS RELEASE
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | October 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 third quarter earnings for 2006. Net income for the quarter ended September 30, 2006 was $1,239,000 or $0.59 (basic) per share as compared to net income of $1,541,000 or $0.74 (basic) per share for the same period last year.
Assets at September 30, 2006 were $678,369,000 and represented a 12% increase over September 30, 2005. Asset growth was most notable in the loan category which increased $62,261,000, or 13%, over the same period. Deposits increased to $386,906,000 at September 30, 2006, a 5% increase over the balance at September 30, 2005.
The annualized Return on Average Assets and Return on Average Equity for the 2006 quarter were .75% and 9.72% respectively.
Increases in capital were also noted and at September 30, 2006, the Bank reported book value per share of $24.34, a 7% increase from September 30, 2005.
President Robert H. Gaughen, Jr. stated “Our earnings remain solid despite the compression of the net interest margin that continues to challenge the banking industry. We have been successful to some degree in mitigating these pressures by our continued ability to expand our loan portfolio. Equally important, our asset quality remains exceptional. At quarter end, the Bank had no foreclosed property and only two nonperforming loans representing a minimal .03% of total loans.”
As announced last quarter the Federal Home Loan bank, pursuant to new capital guidelines, delayed the declaration of their regular second quarter dividend. That dividend was declared during the third quarter (along with the regular third quarter dividend) resulting in additional pretax income of approximately $150,000. Earnings for the third quarter of 2006 were also impacted by approximately $60,000 of expenses incurred relating to the Bank’s new Boston branch which opened October 2, 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. It opened its newest Branch Office in Boston’s South End on October 2, 2006.
The Bank’s shares of common stock are listed and traded on The Nasdaq Stock Market under the symbol HIFS.
