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PRESS RELEASE
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | July 21, 2009 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749.2200 |
43% INCREASE IN QUARTERLY EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (NASDAQ – HIFS), Hingham, Massachusetts announced second quarter earnings for 2009. Net income for the quarter ended June 30, 2009 was $2,023,000 or $0.95 per share (basic and diluted) as compared to $1,416,000 or $0.67 per share (basic and diluted) for the same period last year. The Bank’s return on average equity for the second quarter of 2009 was 13.02%, compared to 9.99% for the same period in 2008. Net income for the first half of 2009 was $3,595,000 or $1.69 per share (basic and diluted) as compared to $2,703,000 or $1.27 per share (basic and diluted) for the same period last year. The Bank’s return on average equity for the first half of 2009 was 11.70% compared to 9.63% for the same period in 2008.
Strong growth trends of recent years continued, as deposits increased to $585,914,000 representing a recent record 25.3% increase from June 30, 2008. Loans increased to $692,274,000 representing a 10.6% increase from June 30, 2008 and total assets increased to $861,963,000 representing a 10.7% increase from June 30, 2008. Stockholders’ equity increased to $62,461,000 as of June 30, 2009 representing a 10.0% increase from June 30, 2008 with a related increase in book value per share to $29.40 from $26.77.
President Robert H. Gaughen, Jr. stated, “We’re pleased to report continued growth and consistent strength as our quarterly earnings represent a 43% increase over the same period last year and our earnings for the first half of 2009 represent a 33% increase over the first half of 2008. These results include a significant provision for loan losses of $450,000 during the second quarter for a total of $1.0 million for the first half of 2009. This provision was made proactively in light of general economic conditions as the Bank experienced no net loan losses year to date. In addition as of June 30, 2009, the Bank had no foreclosed property. Non-performing assets totaled 1.51% of total assets up from .91% at December 31, 2008 and 1.14% at June 30, 2008. We believe these loans are well collaterized and present minimal risk of loss. We are actively pursuing resolution on these credits and believe that our conservative underwriting standards will continue to provide sufficient protection.
President Gaughen added, “As with all federally insured banking institutions, the Bank was required to record a one-time FDIC insurance assessment representing approximately $400,000 (pre-tax) in the second quarter of 2009. The growth in our balance sheet combined with favorable interest margins has allowed us to absorb both this assessment and significantly increase our provision for loan losses. The Bank has also been proactive in managing its balance sheet. During the quarter, the Bank sold $10.9 million in fixed rate loans and recorded a pre-tax gain of $318,000. This transaction allowed us to reduce our long-term interest rate risk while providing a positive economic benefit to current earnings. Our goal remains to vigorously manage asset quality, effectively control costs and protect our earnings.”
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, Norwell, as well as the South End of Boston. The Bank’s shares of common stock are listed and traded on The NASDAQ Stock Market under the symbol HIFS.
