PRESS RELEASE
| FROM: | Robert H. Gaughen, Jr., President |
| Hingham Institution for Savings | |
| Hingham, MA (NASDAQ-HIFS) | |
| DATE: | October 20, 2009 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749.2200 |
22% INCREASE IN QUARTERLY EARNINGS
HINGHAM INSTITUTION FOR SAVINGS (NASDAQ – HIFS), Hingham, Massachusetts announced third quarter earnings for 2009. Net income for the quarter ended September 30, 2009 was $2,183,000 or $1.03 per share (basic and diluted) as compared to $1,788,000 or $0.84 per share (basic and diluted) for the same period last year. The Bank’s annualized return on average equity for the third quarter of 2009 was 13.67%, compared to 12.37% for the same period in 2008.
Net income for the nine months ending September 30, 2009 was $5,778,000 or $2.72 per share (basic and diluted) as compared to $4,491,000 or $2.12 per share (basic and diluted) for the same period last year. The Bank’s annualized return on average equity for the nine months ended September 30, 2009 was 12.37% compared to 10.56% for the same period in 2008.
Strong growth trends of recent years continued, as deposits increased to $628,819,000 representing a recent record 28.1% increase from September 30, 2008. Loans increased to $700,463,000 representing a 10.2% increase from September 30, 2008 and total assets increased to $913,866,000 representing a 12.5% increase from September 30, 2008. Stockholders’ equity increased to $64,261,000 as of September 30, 2009 representing a 10.6% increase from September 30, 2008 with a related increase in book value per share to $30.25 from $27.39.
President Robert H. Gaughen, Jr. stated, “We’re pleased to report continued growth and consistent strength as our quarterly earnings represent a 22% increase over the same period last year and our earnings for the nine months ending September 30, 2009 represent a 29% increase over the same period in 2008. These results are after a significant provision for loan losses of $400,000 during the third quarter for a total of $1.4 million for the first nine months of 2009. At September 30, 2009, non-performing assets totaled 1.35% of total assets, down from 1.51% reported at June 30, 2009. Continued increases in our net interest margin along with diligent cost control have produced real bottom line improvements and have helped offset additional provisions for loan losses at a time when markets are uncertain. 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.
Copyright 2007 Hingham Institution for Savings. All rights reserved. Member FDIC/Member DIF All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules. The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, moneymarket deposit accounts, and Interest on Lawyers Trust Accounts ("IOLTAs"). For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov. All deposit amounts above the FDIC limits are insured in full by the Depositors Insurance Fund.
