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PRESS RELEASE
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | January 25, 2007 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749.2200 |
BANK ANNOUNCES ANNUAL EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (Nasdaq – HIFS), Hingham, Massachusetts announced its earnings for 2006. Net income for the year ended December 31, 2006 was $4,640,000 or $2.19 per share ($2.19 basic) as compared to $6,171,000 or $2.92 per share ($2.95 basic) in 2005. Net income for the fourth quarter ended December 31, 2006 was $990,000 or $0.47 per share ($0.47 basic) compared to $1,545,000 or $0.73 per share ($0.74 basic) for the fourth quarter ended December 31, 2005. The Bank’s return on average equity for 2006 was 9.18%, and the return on average assets was 0.71%.
Strong growth trends of recent years continued in 2006 with a 10% increase in total assets, a 12% increase in total deposits, and a 10% increase in total loans over those of December 31, 2005. Asset quality continued to remain strong. As of December 31, 2006, the Bank had no foreclosed property and two nonperforming loans representing a minimal 0.02% of total assets.
President Robert H. Gaughen, Jr. stated, “The interest rate environment continues to be challenging. The entire industry continues to experience pressures associated with margin compression and a flat yield curve. Although this is a less than ideal situation, we have been successful in partially offsetting the impact by continuing to generate profitable growth. Our challenge in 2007 will be to maintain our quality growth and effective cost control in a challenging interest rate environment.”
Total assets as of December 31, 2006 were $691,652,000 as compared to $628,251,000 at December 31, 2005. Stockholders’ equity increased from $48,458,000 on December 31, 2005 to $51,818,000 on December 31, 2006 with a concomitant increase in book value per share from $23.01 on December 31, 2005 to $24.47 on December 31, 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.
