Hingham Institution for Savings Reports 22% Increase in Quarterly Earnings
- Press Release
- Source: Hingham Institution for Savings
- On 10:31 am EDT, Tuesday October 20, 2009
HINGHAM, Mass.--(BUSINESS WIRE)--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.
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| HIFS | 30.25 | 0.00 |
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 $1.4 million for the first nine months of 2009. At September 30, 2009, non-performing assets totaled 1.35% of total assets, down from 1.51% reported at June 30, 2009. Continued increases in our net interest margin along with diligent cost control have produced real bottom line improvements and have helped offset additional provisions for loan losses at a time when markets are uncertain. Our goal remains to vigorously manage asset quality, effectively control costs and protect our earnings.”
Hingham Institution for Savings is a Massachusetts-chartered savings bank located in Hingham, Massachusetts. Incorporated in 1834, it is the oldest financial institution headquartered in Hingham and one of the oldest in the Commonwealth. The Bank’s main office is located on Main Street, Hingham, Massachusetts 02043, phone (781) 749-2200. The Bank also maintains branch offices in South Hingham and the neighboring towns of Cohasset, Hull, Scituate, Weymouth, Norwell, as well as the South End of Boston. The Bank’s shares of common stock are listed and traded on The NASDAQ Stock Market under the symbol HIFS.
| HINGHAM INSTITUTION FOR SAVINGS | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| September 30, | September 30, | ||||||||||
| 2009 | 2008 | ||||||||||
| (Unaudited) | ($ in thousands except per share amounts) | ||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 7,062 | $ | 13,466 | |||||||
| Short-term investments | 45,188 | 57,490 | |||||||||
| Cash and cash equivalents | 52,250 | 70,956 | |||||||||
| Certificates of deposit | 12,975 | 8,564 | |||||||||
| Securities available for sale, at fair value | 91,578 | 59,857 | |||||||||
| Federal Home Loan Bank stock, at cost | 13,373 | 13,373 | |||||||||
| Loans held for sale | 14,371 | -- | |||||||||
| Loans, net of allowance for loan losses of | |||||||||||
| $5,463,000 in 2009 and $4,263,000 in 2008 | 700,463 | 635,537 | |||||||||
| Other real estate owned | 4,084 | -- | |||||||||
| Bank-owned life insurance | 13,503 | 13,044 | |||||||||
| Premises and equipment, net | 5,480 | 5,730 | |||||||||
| Accrued interest receivable | 3,283 | 2,983 | |||||||||
| Deferred income tax asset, net | 1,387 | 1,339 | |||||||||
| Other assets | 1,119 | 746 | |||||||||
| Total assets | $ | 913,866 | $ | 812,129 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Deposits | $ | 628,819 | $ | 490,771 | |||||||
| Federal Home Loan Bank advances | 214,853 | 257,205 | |||||||||
| Mortgage payable | 1,193 | 1,228 | |||||||||
| Mortgagors' escrow accounts | 1,952 | 1,710 | |||||||||
| Accrued interest payable | 660 | 789 | |||||||||
| Other liabilities | 2,128 | 2,321 | |||||||||
| Total liabilities | 849,605 | 754,024 | |||||||||
| 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; 2,124,250 and 2,121,750 shares issued and outstanding at September 30, 2009 and 2008, respectively | |||||||||||
| 2,124 | 2,122 | ||||||||||
|
Additional paid-in capital |
10,412 | 10,364 | |||||||||
| Undivided profits | 50,987 | 45,688 | |||||||||
| Accumulated other comprehensive income (loss) | 738 | (69 | ) | ||||||||
| Total stockholders' equity | 64,261 | 58,105 | |||||||||
| Total liabilities and stockholders' equity | $ | 913,866 | $ | 812,129 | |||||||
|
|
|||||||||||
| Book value per share | $ | 30.25 | $ | 27.39 | |||||||
| HINGHAM INSTITUTION FOR SAVINGS | ||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| (In Thousands, Except for Per Share Amounts) | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Loans | $ | 10,837 | $ | 10,107 | $ | 31,420 | $ | 29,313 | ||||||||||||
| Debt securities | 480 | 490 | 1,544 | 1,603 | ||||||||||||||||
| Equity securities | 29 | 127 | 88 | 503 | ||||||||||||||||
| Short-term investments and certificates of deposit | 115 | 265 | 364 | 896 | ||||||||||||||||
| Total interest and dividend income | 11,461 | 10,989 | 33,416 | 32,315 | ||||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 2,513 | 2,596 | 8,040 | 9,134 | ||||||||||||||||
| Federal Home Loan Bank advances | 1,781 | 2,566 | 5,366 | 7,784 | ||||||||||||||||
| Mortgage payable | 18 | 19 | 54 | 53 | ||||||||||||||||
| Total interest expense | 4,312 | 5,181 | 13,460 | 16,971 | ||||||||||||||||
| Net interest income | 7,149 | 5,808 | 19,956 | 15,344 | ||||||||||||||||
| Provision for loan losses | 400 | 244 | 1,400 | 512 | ||||||||||||||||
| Net interest income after provision for loan losses | 6,749 | 5,564 | 18,556 | 14,832 | ||||||||||||||||
| Other income: | ||||||||||||||||||||
| Customer service fees on deposits | 214 | 255 | 644 | 740 | ||||||||||||||||
| Increase in bank-owned life insurance | 114 | 114 | 346 | 351 | ||||||||||||||||
| Gain on sale of loans | -- | -- | 318 | -- | ||||||||||||||||
| Miscellaneous | 54 | 50 | 158 | 140 | ||||||||||||||||
| Total other income | 382 | 419 | 1,466 | 1,231 | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Salaries and employee benefits | 1,886 | 1,828 | 5,703 | 5,338 | ||||||||||||||||
| Data processing | 208 | 207 | 645 | 623 | ||||||||||||||||
| Occupancy and equipment | 323 | 319 | 1,010 | 926 | ||||||||||||||||
| Deposit insurance | 293 | 83 | 1,084 | 250 | ||||||||||||||||
| Other general and administrative | 871 | 590 | 2,231 | 1,746 | ||||||||||||||||
| Total operating expenses | 3,581 | 3,027 | 10,673 | 8,883 | ||||||||||||||||
| Income before income taxes | 3,550 | 2,956 | 9,349 | 7,180 | ||||||||||||||||
| Income tax provision | 1,367 | 1,168 | 3,571 | 2,689 | ||||||||||||||||
| Net income | $ | 2,183 | $ | 1,788 | $ | 5,778 | $ | 4,491 | ||||||||||||
| Cash dividends declared per common share | $ | 0.22 | $ | 0.21 | $ | 0.64 | $ | 0.61 | ||||||||||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 2,124 | 2,122 | 2,124 | 2,121 | ||||||||||||||||
| Diluted | 2,124 | 2,122 | 2,124 | 2,122 | ||||||||||||||||
| Earnings per share | ||||||||||||||||||||
| Basic | $ | 1.03 | $ | 0.84 | $ | 2.72 | $ | 2.12 | ||||||||||||
| Diluted | $ | 1.03 | $ | 0.84 | $ | 2.72 | $ | 2.12 | ||||||||||||
| Return on average equity | 13.67 |
% |
|
12.37 |
% |
|
12.37 |
% |
|
10.56 |
% |
|
||||||||
Contact:
Hingham Institution for Savings
Robert H. Gaughen, Jr., 781-749-2200
President
or
William M. Donovan, Jr., 781-749-2200
Vice President
Related Headlines
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- Hingham Institution for Savings Announces 4.8% Increase in Dividend - Business Wire
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