 |
 |
 |
 |
 |
1999 Fourth Quarter - Earnings
| FROM: |
Robert
H. Gaughen, Jr., President Hingham Institution for Savings Hingham, MA (NASDAQ - HIFS) |
| DATE: | January 20, 2000 |
| CONTACT: | William M. Donovan, Jr., Vice President (781) 749-2200 |
PRESS RELEASE
STRONG EARNINGS INCREASE FOR YEAR AND FOURTH QUARTER
HINGHAM INSTITUTION FOR SAVINGS (Nasdaq - HIFS), Hingham, Massachusetts, announced its earnings for 1999. Net income for the year ended December 31, 1999 was $3,246,000 or $1.65 per share representing an 8.1% increase over net income of $3,002,000 or $1.53 per share for fiscal year 1998. Earnings for the fourth quarter ended December 31, 1999 were $870,000 or $0.44 per share as compared with $825,000 or $0.42 per share for the fourth quarter of 1998.
The increase in earnings resulted from significant growth in both deposits and loans. Throughout 1999, loans increased by $24,913,000 or 12.2%, and deposits increased by $14,773,000 or 8.3%. Loan originations for 1999 totaled $87,391,000.
Commenting on these results, President and Chief Executive Officer Robert H. Gaughen, Jr. said "Our continued growth has resulted in predictably strong earnings. Earnings continue to grow at a higher rate than our peer averages. The steady expansion of our retail franchise in the attractive coastal towns of the South Shore and our ongoing development as a niche lender in multifamily properties have produced an enviable earnings record. Our very lean organization has allowed us to accomplish this while still maintaining a very healthy 9.16% tier one capital ratio. We have one of the lowest (best) efficiency ratios of area banks: 50% versus approximately 67%. Asset quality also remains high with nonperforming loans totaling only 0.33% of total assets." The annualized Return on Average Assets and Return on Average Equity for fiscal year 1999 were 1.19% and 13.07% respectively. Book value per share was $12.83.
Total assets as of December 31, 1999 were $291,183,000 as compared to $260,076,000 at December 31, 1998, and stockholders' equity was $26,181,000 as compared to $23,676,000 at December 31, 1998.
A quarterly dividend of $0.12 per share and a special dividend of $0.12 per share were announced during the fourth quarter of 1999.
Hingham Institution for Savings is a Massachusetts-chartered savings bank located in Hingham, Massachusetts. Incorporated in 1834, it is the oldest financial institution headquartered in Hingham and one of the oldest in the Commonwealth. The Bank's main offices are located on Main Street, Hingham, Massachusetts 02043, phone (781) 749-2200. The Bank also maintains branch offices in South Hingham and the neighboring towns of Cohasset, Hull, Scituate, and Weymouth.
The Bank's shares of common stock are listed and traded on The Nasdaq Stock Market under the symbol HIFS.
Page
1 of 3
_______________________________________
| Consolidated Balance Sheets | ||
|
(In Thousands) |
December 31, | December 31, |
|
(Unaudited) |
1999 | 1998 |
|
ASSETS |
($ in thousands except share amounts) |
|
|
Cash and due from banks |
$6,236 | $5,227 |
|
Interest-bearing deposits |
9,755 | 13,346 |
|
Cash and cash equivalents |
15,991 | 18,573 |
|
Securities available for sale, at fair value |
35,532 | 28,235 |
|
Loans, net of allowance for loan losses of |
||
|
$1,976,000 in 1999 and $1,729,000 in 1998 |
229,687 | 204,774 |
|
Banking premises and equipment, net |
3,397 | 3,173 |
|
Accrued interest receivable |
1,642 | 1,330 |
|
Deferred income tax asset, net |
1,172 | 930 |
|
Federal Home Loan Bank stock, at cost |
3,423 | 2,750 |
|
Other Assets |
339 | 311 |
|
Total assets |
$291,183 | $260,076 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||
|
Deposits |
$193,514 | $178,741 |
|
Federal Home Loan Bank advances |
68,445 | 55,000 |
|
Other borrowed funds |
248 | 56 |
|
Mortgagors' escrow accounts |
870 | 637 |
|
Accrued interest payable |
358 | 308 |
|
Other liabilities |
1,567 | 1,658 |
|
Total liabilities |
265,002 | 236,400 |
|
Commitments and contingencies |
-- | -- |
|
|
||
|
Stockholders' equity: |
||
|
Preferred stock, $1.00 par value |
||
|
2,500,000 shares authorized; none issued |
-- | -- |
|
Common stock, $1.00 par value, 5,000,000 shares |
||
|
authorized; 2,040,750 shares issued and outstanding |
||
|
at Dec. 31, 1999 & 1,964,250 at Dec. 31, 1998 |
2,041 | 1,964 |
|
Additional paid in capital |
8,809 | 8,154 |
|
Undivided profits |
15,559 | 13,471 |
|
Accumulated other comprehensive income (loss) |
(228) | 87 |
|
Total stockholders' equity |
26,181 | 23,676 |
|
Total liabilities and stockholders' equity |
$291,183 | $260,076 |
|
Book Value per share |
$12.83 | $12.05 |
|
Annualized return on average equity |
13.07% | 13.18% |
Page 2 of
2
_______________________________________
| Consolidated Statements of Income | ||||
|
(In Thousands, Except for Per Share Amounts) |
Three
Months Ended December 31, |
Twelve
Months Ended December 31, |
||
|
(Unaudited) |
1999 | 1998 | 1999 | 1998 |
|
Interest and dividend income: |
||||
|
Loans |
$4,651 | $4,131 | $17,734 | $15,642 |
|
Investment securities |
572 | 500 | 2,016 | 2,176 |
|
Interest-bearing deposits |
132 | 111 | 509 | 343 |
|
Total interest and dividend income |
5,355 | 4,743 | 20,259 | 18,161 |
|
Interest expense: |
||||
|
Deposits |
1,716 | 1,663 | 6,648 | 6,572 |
|
Borrowed funds |
947 | 753 | 3,320 | 2,651 |
|
Total interest expense |
2,663 | 2,416 | 9,968 | 9,223 |
|
Net interest income |
2,692 | 2,327 | 10,291 | 8,938 |
|
Provision for loan losses |
20 | 34 | 200 | 151 |
|
Net interest income after provision for loan losses |
2,672 | 2,293 | 10,091 | 8,787 |
|
Other income: |
||||
|
Customer service fees on deposits |
151 | 112 | 536 | 441 |
| Gain on sale of assets | -- | 46 |
11 |
106 |
| Other | 65 | 57 | 187 | 195 |
| Total other income | 216 | 215 | 734 | 742 |
| Operating expenses: | ||||
| Salaries and employee benefits | 841 | 706 | 3,120 | 2,711 |
| Data processing | 99 | 83 | 398 | 332 |
| Occupancy and equipment | 171 | 151 | 689 | 573 |
| Legal | 5 | 12 | (1) | 16 |
| Other | 359 | 280 | 1,334 | 1,084 |
| Total operating expenses | 1,475 | 1,232 | 5,540 | 4,716 |
| Income before income taxes | 1,413 | 1,276 | 5,285 | 4,813 |
| Income tax provision | 543 | 451 | 2,039 | 1,811 |
| Net income | $870 | $825 | $3,246 | $3,002 |
| Cash dividends declared per common share | $0.24 | $0.21 | $0.58 | $0.49 |
| Weighted average shares outstanding | 1,973 | 1,964 | 1,966 | 1,959 |
|
Weighted average
shares outstanding - assuming dilution for stock options |
2,010 | 2,010 | 2,007 | 2,012 |
| Earnings per share | $0.44 | $0.42 | $1.65 | $1.53 |
|
Earnings per share
- assuming dilution for stock options |
$0.43 | $0.41 | $1.62 | $1.49 |
Page 3 of
3
