Hingham Savings Announces 17% Increase in Annual Operating Earnings
January 19 2016 - 9:10AM
HINGHAM INSTITUTION FOR SAVINGS (NASDAQ:HIFS), announced net income
for the year ended December 31, 2015 was $19,346,000 or $9.09 per
share basic and $9.02 per share diluted as compared to $22,264,000
or $10.46 per share basic and $10.44 per share diluted for 2014.
Annual earnings for 2014 included a one-time net gain of
approximately $5.7 million related to a non-taxable life insurance
transaction, the details of which were reported in the Bank’s 2014
Annual Report on Form 10-K. Excluding this event, the Bank’s
operating earnings was $16,523,000 or $7.76 per share basic and
$7.75 per share fully diluted for 2014. Net income per share
(basic) for 2015 increased 17% over 2014, excluding the impact of
the life insurance transaction.
The Bank’s return on average equity for the year
ended December 31, 2015 was 14.81% and the return on average assets
was 1.18%. Excluding the impact of the life insurance
transaction, the Bank’s return on average equity for the year ended
December 31, 2014 was 14.32% and the return on average assets was
1.13%.
Net income for the fourth quarter of 2015 was
$5,234,000 or $2.46 per share basic and $2.44 per share diluted; a
15% increase over $4,535,000 or $2.13 per share basic and $2.12 per
share diluted for the fourth quarter of 2014. The Bank’s
return on average equity for the quarter ending December 31, 2015
was 15.30% and the return on average assets was 1.21%, an
improvement from 15.01% and 1.18% for the same quarter last
year.
The Bank produced strong growth in deposits,
loans, and book value per share in 2015. Deposits increased
by 12% to $1.217 billion. Net loans increased by 13% to
$1.406 billion. Total assets increased by 14% to $1.769
billion. Book value per share increased by 14% to
$64.83. This increase in book value per share excludes
capital returned to the ownership through regular and special
dividends; the Bank declared $1.46 in regular and special dividends
in 2015.
Key credit and operational metrics continued to
improve in 2015. At December 31, 2015, non-performing assets
totaled 0.10% of total assets compared to 0.20% of total assets at
December 31, 2014. Non-performing loans as a percentage of
the total loan portfolio totaled 0.13% at December 31, 2015 as
compared to 0.18% at December 31, 2014. At December 31, 2015,
the Bank did not own any foreclosed real estate. The
efficiency ratio improved to 36.32% in 2015 as compared to 37.12%
in 2014. Operating expenses as a percentage of average assets
improved to 1.16% in 2015 as compared to 1.37% in 2014. Both
the efficiency ratio and operating expenses as a percentage of
average assets reached new record lows in 2015 and reflect the
Bank’s particular focus on disciplined expense
management.
Robert H. Gaughen Jr., President and Chairman of
the Board of Directors, stated “At Hingham, we take our role as
stewards of the shareholders’ capital seriously. We are
pleased to report a strong return on that capital in 2015.
Our emphasis on careful capital allocation, conservative
underwriting, disciplined cost control and measured growth
continues to serve our shareholders well. More important than
performance in any one year, however, is a company’s record of
compounding shareholder capital over time and through credit
cycles. On this measure, our team strives to set a high
bar.”
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
continuously operating banks in the United States. The Bank’s
main offices are located on Main Street in Hingham. The Bank
also maintains branch offices in South Hingham and the neighboring
towns of Cohasset, Hull, Norwell, Scituate and Weymouth, as well as
branches in the South End of Boston, on Beacon Hill and on the
island of Nantucket. The Bank’s shares of common stock are
listed and traded on The NASDAQ Stock Market under the symbol
HIFS.
HINGHAM INSTITUTION FOR SAVINGS |
Selected Financial Ratios |
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2014 |
|
2015 |
|
2014 |
|
2015 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Performance
Ratios |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1) |
1.18 |
% |
|
1.21 |
% |
|
1.52 |
% |
|
1.18 |
% |
Return on average
equity (1) |
15.01 |
|
|
15.30 |
|
|
19.30 |
|
|
14.81 |
|
Interest rate spread
(1) (2) |
3.12 |
|
|
3.02 |
|
|
3.13 |
|
|
3.06 |
|
Net interest margin (1)
(3) |
3.23 |
|
|
3.14 |
|
|
3.23 |
|
|
3.17 |
|
Non-interest expense to
average assets (1) |
1.24 |
|
|
1.09 |
|
|
1.37 |
|
|
1.16 |
|
Efficiency ratio
(4) |
37.95 |
|
|
34.55 |
|
|
37.12 |
|
|
36.32 |
|
Average equity to
average assets |
7.83 |
|
|
7.90 |
|
|
7.87 |
|
|
7.97 |
|
Average
interest-bearing assets to average interest bearing
liabilities |
115.74 |
|
|
115.90 |
|
|
114.92 |
|
|
115.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
2014 |
|
2015 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
Allowance for loan
losses/total loans |
|
0.73 |
% |
|
0.70 |
% |
Allowance for loan
losses/non-performing loans |
|
397.04 |
|
|
540.37 |
|
|
|
|
|
|
|
|
Non-performing loans/total
loans |
|
0.18 |
|
|
0.13 |
|
Non-performing loans/total
assets |
|
0.15 |
|
|
0.10 |
|
Non-performing
assets/total assets |
|
0.20 |
|
|
0.10 |
|
|
|
|
|
|
|
|
Share
Related |
|
|
|
|
|
|
Book value per share |
$ |
57.08 |
|
|
$ |
64.83 |
|
Market value per
share |
$ |
87.01 |
|
|
$ |
119.80 |
|
Shares outstanding at end
of period |
|
2,128,750 |
|
|
|
2,128,750 |
|
(1) Annualized
(2) Interest rate spread represents the difference between the
yield on earning assets and cost of interest-bearing
liabilities.
(3) Net interest margin represents net interest income divided
by average earning assets.
(4) The efficiency ratio represents non-interest expense,
divided by the sum of net interest income and non-interest income,
excluding gain on sale of securities.
|
HINGHAM INSTITUTION FOR SAVINGS |
Consolidated Balance Sheets |
|
|
|
|
|
|
|
December 31, |
|
December 31, |
(Dollars in thousands,
except per share data) |
2014 |
|
2015 |
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
$ |
6,917 |
|
$ |
6,944 |
Short-term
investments |
|
170,305 |
|
|
254,069 |
Cash and cash
equivalents |
|
177,222 |
|
|
261,013 |
|
|
|
|
|
|
Certificates of
deposit |
|
12,926 |
|
|
6,206 |
Securities available for
sale, at fair value |
|
70,570 |
|
|
40,603 |
Federal Home Loan Bank
stock, at cost |
|
17,855 |
|
|
19,796 |
Loans, net of allowance
for loan losses of $9,108 at |
|
|
|
|
|
December 31, 2014
and $9,905 at December 31, 2015 |
|
1,238,656 |
|
|
1,405,533 |
Foreclosed real
estate |
|
786 |
|
|
— |
Bank-owned life
insurance |
|
11,416 |
|
|
11,697 |
Premises and equipment,
net |
|
15,211 |
|
|
15,094 |
Accrued interest
receivable |
|
2,959 |
|
|
3,270 |
Deferred income tax asset,
net |
|
2,642 |
|
|
3,281 |
Other assets |
|
1,962 |
|
|
2,035 |
Total assets |
$ |
1,552,205 |
|
$ |
1,768,528 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
1,089,217 |
|
$ |
1,217,027 |
Federal Home Loan Bank
advances |
|
329,602 |
|
|
402,464 |
Mortgage
payable |
|
973 |
|
|
922 |
Mortgagors’ escrow
accounts |
|
4,476 |
|
|
4,850 |
Accrued interest
payable |
|
350 |
|
|
303 |
Other liabilities |
|
6,072 |
|
|
4,947 |
Total
liabilities |
|
1,430,690 |
|
|
1,630,513 |
|
|
|
|
|
|
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;
2,128,750 shares issued and outstanding |
|
2,129 |
|
|
2,129 |
Additional paid-in
capital |
|
10,942 |
|
|
11,052 |
Undivided
profits |
|
108,243 |
|
|
124,481 |
Accumulated other
comprehensive income |
|
201 |
|
|
353 |
Total stockholders’
equity |
|
121,515 |
|
|
138,015 |
Total liabilities
and stockholders’ equity |
$ |
1,552,205 |
|
$ |
1,768,528 |
|
|
|
|
|
|
|
|
|
|
HINGHAM
INSTITUTION FOR SAVINGS |
|
|
Consolidated Statements of Net Income |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve
Months Ended |
|
|
|
|
December 31, |
|
December 31, |
|
(In thousands, except per share
amounts) |
2014 |
|
|
2015 |
|
2014 |
|
2015 |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
14,392 |
|
$ |
15,810 |
|
$ |
54,990 |
|
$ |
60,260 |
|
|
Debt securities |
|
73 |
|
|
33 |
|
|
336 |
|
|
195 |
|
|
Equity securities |
|
145 |
|
|
250 |
|
|
491 |
|
|
795 |
|
|
Short-term investments and
certificates of deposit |
|
130 |
|
|
185 |
|
|
376 |
|
|
609 |
|
|
|
Total interest and dividend income |
|
14,740 |
|
|
16,278 |
|
|
56,193 |
|
|
61,859 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,760 |
|
|
2,197 |
|
|
6,314 |
|
|
7,945 |
|
|
Federal Home Loan Bank advances |
|
760 |
|
|
746 |
|
|
3,562 |
|
|
2,908 |
|
|
Mortgage payable |
|
15 |
|
|
14 |
|
|
60 |
|
|
57 |
|
|
|
Total interest expense |
|
2,535 |
|
|
2,957 |
|
|
9,936 |
|
|
10,910 |
|
|
|
Net interest income |
|
12,205 |
|
|
13,321 |
|
|
46,257 |
|
|
50,949 |
|
Provision for loan losses |
|
150 |
|
|
100 |
|
|
625 |
|
|
625 |
|
|
Net interest income, after provision
for loan losses |
12,055 |
|
|
13,221 |
|
|
45,632 |
|
|
50,324 |
|
Other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer service fees on
deposits |
|
258 |
|
|
247 |
|
|
1,014 |
|
|
978 |
|
|
Increase in bank-owned life
insurance |
|
70 |
|
|
69 |
|
|
308 |
|
|
281 |
|
|
Gain on life insurance
distribution |
|
— |
|
|
— |
|
|
6,302 |
|
|
— |
|
|
Gain on sale of securities |
|
— |
|
|
— |
|
|
— |
|
|
29 |
|
|
Miscellaneous |
|
57 |
|
|
53 |
|
|
239 |
|
|
195 |
|
|
|
Total other income |
|
385 |
|
|
369 |
|
|
7,863 |
|
|
1,483 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
2,846 |
|
|
2,931 |
|
|
12,424 |
|
|
11,632 |
|
|
Data processing |
|
304 |
|
|
291 |
|
|
1,197 |
|
|
1,182 |
|
|
Occupancy and equipment |
|
496 |
|
|
471 |
|
|
1,968 |
|
|
2,057 |
|
|
Deposit insurance |
|
211 |
|
|
240 |
|
|
803 |
|
|
902 |
|
|
Foreclosure |
|
29 |
|
|
10 |
|
|
263 |
|
|
72 |
|
|
Marketing |
|
203 |
|
|
105 |
|
|
557 |
|
|
489 |
|
|
Other general and administrative |
|
682 |
|
|
682 |
|
|
2,877 |
|
|
2,697 |
|
|
|
Total operating expenses |
|
4,771 |
|
|
4,730 |
|
|
20,089 |
|
|
19,031 |
|
Income before income taxes |
|
7,669 |
|
|
8,860 |
|
|
33,406 |
|
|
32,776 |
|
Income tax provision |
|
3,134 |
|
|
3,626 |
|
|
11,142 |
|
|
13,430 |
|
|
|
Net income |
$ |
4,535 |
|
$ |
5,234 |
|
$ |
22,264 |
|
$ |
19,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
2,129 |
|
|
2,129 |
|
|
2,129 |
|
|
2,129 |
|
|
Diluted |
|
2,136 |
|
|
2,149 |
|
|
2,133 |
|
|
2,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
2.13 |
|
$ |
2.46 |
|
$ |
10.46 |
|
$ |
9.09 |
|
|
Diluted |
$ |
2.12 |
|
$ |
2.44 |
|
$ |
10.44 |
|
$ |
9.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HINGHAM INSTITUTION FOR SAVINGS |
|
Net Interest Income Analysis |
|
|
|
|
|
Three Months Ended December 31, |
|
|
2014 |
|
|
2015 |
|
|
AVERAGE |
|
|
|
YIELD/ |
|
|
AVERAGE |
|
|
|
YIELD/ |
|
|
BALANCE |
|
INTEREST |
|
RATE |
|
|
BALANCE |
|
INTEREST |
|
RATE |
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) (2) |
$ |
1,228,130 |
|
$ |
14,392 |
|
4.69 |
% |
|
$ |
1,381,732 |
|
$ |
15,810 |
|
4.58 |
% |
Securities (3) (4) |
|
96,852 |
|
|
218 |
|
0.90 |
|
|
|
64,082 |
|
|
283 |
|
1.77 |
|
Short-term investments and
certificates of deposit |
|
185,211 |
|
|
130 |
|
0.28 |
|
|
|
253,716 |
|
|
185 |
|
0.29 |
|
Total earning
assets |
|
1,510,193 |
|
|
14,740 |
|
3.90 |
|
|
|
1,699,530 |
|
|
16,278 |
|
3.83 |
|
Other assets |
|
33,565 |
|
|
|
|
|
|
|
|
33,138 |
|
|
|
|
|
|
Total assets |
$ |
1,543,758 |
|
|
|
|
|
|
|
$ |
1,732,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
(5) |
$ |
965,990 |
|
|
1,760 |
|
0.73 |
|
|
$ |
1,087,721 |
|
|
2,197 |
|
0.81 |
|
Borrowed funds |
|
338,841 |
|
|
775 |
|
0.91 |
|
|
|
378,621 |
|
|
760 |
|
0.80 |
|
Total
interest-bearing liabilities |
|
1,304,831 |
|
|
2,535 |
|
0.78 |
|
|
|
1,466,342 |
|
|
2,957 |
|
0.81 |
|
Demand deposits |
|
111,821 |
|
|
|
|
|
|
|
|
124,994 |
|
|
|
|
|
|
Other liabilities |
|
6,245 |
|
|
|
|
|
|
|
|
4,499 |
|
|
|
|
|
|
Total
liabilities |
|
1,422,897 |
|
|
|
|
|
|
|
|
1,595,835 |
|
|
|
|
|
|
Stockholders’ equity |
|
120,861 |
|
|
|
|
|
|
|
|
136,833 |
|
|
|
|
|
|
Total liabilities
and stockholders’ equity |
$ |
1,543,758 |
|
|
|
|
|
|
|
$ |
1,732,668 |
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
12,205 |
|
|
|
|
|
|
|
$ |
13,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
spread |
|
|
|
|
|
|
3.12 |
% |
|
|
|
|
|
|
|
3.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(6) |
|
|
|
|
|
|
3.23 |
% |
|
|
|
|
|
|
|
3.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning
assets to average interest-bearing liabilities (7) |
|
|
|
|
|
|
115.74 |
% |
|
|
|
|
|
|
|
115.90 |
% |
|
|
|
|
|
(1 |
) |
Before allowance for
loan losses. |
|
(2 |
) |
Includes non-accrual
loans. |
|
(3 |
) |
Excludes the impact of
the average net unrealized gain or loss on securities available for
sale. |
|
(4 |
) |
Includes Federal Home
Loan Bank stock. |
|
(5 |
) |
Includes mortgagors'
escrow accounts. |
|
(6 |
) |
Net interest income
divided by average total earning assets. |
|
(7 |
) |
Total earning assets
divided by total interest-bearing liabilities. |
HINGHAM INSTITUTION FOR
SAVINGS |
|
Net Interest Income Analysis |
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
2014 |
|
|
2015 |
|
|
AVERAGE |
|
|
|
YIELD/ |
|
|
AVERAGE |
|
|
|
YIELD/ |
|
|
BALANCE |
|
INTEREST |
|
RATE |
|
|
BALANCE |
|
INTEREST |
|
RATE |
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) (2) |
$ |
1,179,865 |
|
$ |
54,990 |
|
4.66 |
% |
|
$ |
1,307,871 |
|
$ |
60,260 |
|
4.61 |
% |
Securities (3) (4) |
|
110,021 |
|
|
827 |
|
0.75 |
|
|
|
76,193 |
|
|
990 |
|
1.30 |
|
Short-term investments and
certificates of deposit |
|
140,393 |
|
|
376 |
|
0.27 |
|
|
|
221,807 |
|
|
609 |
|
0.27 |
|
Total earning
assets |
|
1,430,279 |
|
|
56,193 |
|
3.93 |
|
|
|
1,605,871 |
|
|
61,859 |
|
3.85 |
|
Other assets |
|
35,824 |
|
|
|
|
|
|
|
|
33,014 |
|
|
|
|
|
|
Total assets |
$ |
1,466,103 |
|
|
|
|
|
|
|
$ |
1,638,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
(5) |
$ |
923,550 |
|
|
6,314 |
|
0.68 |
|
|
$ |
1,038,016 |
|
|
7,945 |
|
0.77 |
|
Borrowed funds |
|
321,068 |
|
|
3,622 |
|
1.13 |
|
|
|
348,094 |
|
|
2,965 |
|
0.85 |
|
Total
interest-bearing liabilities |
|
1,244,618 |
|
|
9,936 |
|
0.80 |
|
|
|
1,386,110 |
|
|
10,910 |
|
0.79 |
|
Demand deposits |
|
101,974 |
|
|
|
|
|
|
|
|
117,741 |
|
|
|
|
|
|
Other liabilities |
|
4,130 |
|
|
|
|
|
|
|
|
4,387 |
|
|
|
|
|
|
Total
liabilities |
|
1,350,722 |
|
|
|
|
|
|
|
|
1,508,238 |
|
|
|
|
|
|
Stockholders’
equity |
|
115,381 |
|
|
|
|
|
|
|
|
130,647 |
|
|
|
|
|
|
Total liabilities
and stockholders’ equity |
$ |
1,466,103 |
|
|
|
|
|
|
|
$ |
1,638,885 |
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
46,257 |
|
|
|
|
|
|
|
$ |
50,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
spread |
|
|
|
|
|
|
3.13 |
% |
|
|
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(6) |
|
|
|
|
|
|
3.23 |
% |
|
|
|
|
|
|
|
3.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning
assets to average interest-bearing liabilities (7) |
|
|
|
|
|
|
114.92 |
% |
|
|
|
|
|
|
|
115.85 |
% |
|
(1 |
) |
Before allowance for
loan losses. |
|
(2 |
) |
Includes non-accrual
loans. |
|
(3 |
) |
Excludes the impact of
the average net unrealized gain or loss on securities available for
sale. |
|
(4 |
) |
Includes Federal Home
Loan Bank stock. |
|
(5 |
) |
Includes mortgagors'
escrow accounts. |
|
(6 |
) |
Net interest income
divided by average total earning assets. |
|
(7 |
) |
Total earning assets
divided by total interest-bearing liabilities. |
CONTACT: Robert A. Bogart,
Vice President-Treasurer (781) 749-2200
Hingham Institution for ... (NASDAQ:HIFS)
Historical Stock Chart
From Jul 2024 to Aug 2024
Hingham Institution for ... (NASDAQ:HIFS)
Historical Stock Chart
From Aug 2023 to Aug 2024