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PRESS RELEASE
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | January 22, 2009 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749.2200 |
40% INCREASE IN ANNUAL EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (Nasdaq – HIFS), Hingham, Massachusetts announced its earnings for 2008. Net income for the year ended December 31, 2008 was $6,285,000 or $2.96 per share (basic and diluted) as compared to $4,490,000 or $2.12 per share (basic and diluted) in 2007. Net income for the fourth quarter ended December 31, 2008 was $1,794,000 or $0.85 per share (basic and diluted) as compared to $1,331,000 or $0.63 per share (basic and diluted) for the fourth quarter ended December 31, 2007. The Bank’s return on average equity for 2008 was 11.08%, and the return on average assets was 0.81%.
Strong growth trends of recent years continued in 2008. Deposits increased by a record $84,059,000 or 19% over those of year-end 2007. Total loans increased by 9% and total assets increased by 8% over those of year-end 2007.
President Robert H. Gaughen, Jr. stated, “We’re pleased to report continued growth and consistent strength with our annual earnings representing a 40% increase over the prior year. In this period of financial turmoil, we are proud of these accomplishments. We remain committed to the conservative strategies and practices that have made this possible. At December 31, 2008, non-performing assets totaled .91% of total assets up from .69% at September 30, 2008. While no bank is completely immune from the challenge of declining real estate values, continued improvements in our net interest margin, diligent cost control and prudent lending standards have produced real bottom line improvements at a time when some banks are struggling. Our goal remains to vigorously manage asset quality, effectively control costs and protect our earnings.”
Total assets as of December 31, 2008 were $806,193,000 as compared to $744,602,000 at December 31, 2007. Stockholders’ equity increased from $54,771,000 on December 31, 2007 to $59,825,000 on December 31, 2008 with a concomitant increase in book value per share from $25.85 to $28.20.
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 office is 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, Weymouth as well as the South End of Boston and a recently opened branch in Norwell. The Bank’s shares of common stock are listed and traded on The Nasdaq Stock Market under the symbol HIFS.
