HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham,
Massachusetts announced second quarter results for 2021.
Earnings
Net income for the quarter ended June 30, 2021
was $20,422,000 or $9.54 per share basic and $9.28 per share
diluted, as compared to $16,338,000 or $7.65 per share basic and
$7.50 per share diluted for the same period last year. The Bank’s
annualized return on average equity for the second quarter of 2021
was 25.51%, and the annualized return on average assets was 2.83%,
as compared to 25.28% and 2.41% for the same period in 2020. Net
income per share (diluted) for the second quarter of 2021 increased
by 24% over the same period in 2020.
Core net income for the quarter ended June 30,
2021, which represents net income excluding the after-tax gains and
losses on securities, both realized and unrealized, and the
after-tax gains on the disposal of fixed assets, was $13,795,000 or
$6.44 per share basic and $6.27 per share diluted, as compared to
$10,936,000 or $5.12 per share basic and $5.03 per share diluted
for the same period last year. The Bank’s annualized core return on
average equity for the second quarter of 2021 was 17.24%, and the
annualized core return on average assets was 1.91%, as compared to
16.92% and 1.61% for the same period in 2020. Core net income per
share (diluted) for the second quarter of 2021 increased by 25%
over the same period in 2020.
Net income for the six months ended June 30,
2021 was $36,772,000 or $17.18 per share basic and $16.73 per share
diluted, as compared to $18,523,000 or $8.67 per share basic and
$8.50 per share diluted for the same period last year. The Bank’s
annualized return on average equity for the first six months of
2021 was 23.67%, and the annualized return on average assets was
2.58%, as compared to 14.50% and 1.39% for the same period in
2020. Net income per share (diluted) for the first six
months of 2021 increased by 97% over the same period in 2020.
Core net income for the six months ended June
30, 2021, which represents net income excluding the after-tax gains
and losses on securities, both realized and unrealized, and the
after-tax gains on the disposal of fixed assets, was $27,520,000 or
$12.86 per share basic and $12.52 per share diluted, as compared to
$19,258,000 or $9.01 per share basic and $8.83 per share diluted
for the same period last year. The Bank’s annualized core return on
average equity for the first six months of 2021 was 17.72%, and the
annualized core return on average assets was 1.93%, as compared to
15.08% and 1.45% for the same period in 2020. Core net income per
share (diluted) for the first six months of 2021 increased by 42%
over the same period in 2020.
In calculating core net income, the Bank has not
traditionally made any adjustments other than those relating to
after-tax gains and losses on securities, both realized and
unrealized. However, net income for the three and six months ended
June 30, 2021 included a $2.3 million pre-tax gain on the sale of
the Bank’s former branch properties located in Weymouth and South
Hingham, included in gain on disposal of fixed assets. This
compares to a $218,000 pre-tax gain recorded in the first six
months of 2020, related to the sale of the Bank’s former branch
property in Scituate. Given the significant gains on disposal of
fixed assets, the Bank has excluded these gains from the
calculation of core net income. The prior year core net income,
core net income per share basic and diluted, core return on average
assets and core return on average equity figures have been adjusted
accordingly to exclude such gains. See Page 10 for a Non-GAAP
reconciliation between net income and core net income.
The Bank continues to optimize its branch
footprint and has recently announced its intention to close its
Norwell branch in September 2021, subject to regulatory
approvals.
Balance Sheet
Balance sheet growth was satisfactory, as total
assets increased to $2.974 billion at June 30, 2021, representing
8% annualized growth year-to-date and 9% growth from June 30, 2020.
Asset growth, as a percentage, was below loan growth in both
periods as the Bank continued to manage the balance sheet to
minimize the carrying cost of its on-balance sheet liquidity.
Net loans increased to $2.630 billion at June
30, 2021, representing 11% annualized growth year-to-date and 10%
growth from June 30, 2020. Growth was concentrated in the Bank’s
commercial real estate portfolio.
Total deposits, including wholesale deposits,
increased to $2.344 billion at June 30, 2021, representing 19%
annualized growth year-to-date and 14% growth from June 30, 2020.
Total retail and business deposits increased to $1.640 billion at
June 30, 2021, representing 6% annualized growth year-to-date and
4% growth from June 30, 2020. Retail and business deposit growth
was partially offset by a continuous decline in retail time
deposits, as the Bank allowed higher rate maturing time deposits to
roll off. Non-interest-bearing deposits, included in retail and
business deposits, increased to $358.2 million at June 30, 2021,
representing 29% annualized growth year-to-date and 24% growth from
June 30, 2020. During the first half of 2021, the Bank continued to
manage its wholesale funding mix between wholesale time deposits
and Federal Home Loan Bank advances in order to reduce the cost of
funds.
Book value per share was $153.02 as of June 30,
2021, representing 23% annualized growth year-to-date and 24%
growth from June 30, 2020. In addition to the increase in book
value per share, the Bank has declared $2.62 in dividends per share
since June 30, 2020, including a special dividend of $0.70 per
share declared during the fourth quarter of 2020. The Bank
increased its regular quarterly dividend in each of the last four
quarters.
On June 23, 2021, the Bank’s Board of Directors
declared a regular cash dividend of $0.51 per share. This
represents an increase of 4% over the previous regular quarterly
dividend of $0.49 per share. The dividend will be paid on August
11, 2021 to stockholders of record as of August 2, 2021. This will
be the Bank’s 110th consecutive quarterly dividend and the Bank has
consistently increased regular quarterly cash dividends over the
last twenty-six years. The Bank has also declared special cash
dividends in each of the last twenty-six years, typically in the
fourth quarter.
The Bank sets the level of the special dividend
based on the Bank’s capital requirements and the prospective return
on other capital allocation options. This may result in special
dividends, if any, significantly above or below the regular
quarterly dividend. Future regular and special dividends will be
considered by the Board of Directors on a quarterly basis.
Operational Performance
Metrics
The net interest margin for the quarter ended
June 30, 2021 increased 31 basis points to 3.46%, as compared to
3.15% for the same period last year. The net interest margin for
the six months ended June 30, 2021 increased 51 basis points to
3.50%, as compared to 2.99% for the same period last year. The Bank
has benefited from a sharp decline in the cost of interest-bearing
liabilities, including retail and commercial deposits and wholesale
funding. The Bank has also benefited from continued growth in
non-interest-bearing deposit balances. These benefits were
partially offset by a decline in the yield on interest-earning
assets, driven primarily by the decline in the interest on excess
reserves held at the Federal Reserve Bank of Boston and a lower
yield on loans during the same period.
Key credit and operational metrics remained
strong in the second quarter. At June 30, 2021, non-performing
assets totaled 0.01% of total assets, compared to 0.27% at December
31, 2020 and 0.24% at June 30, 2020. Non-performing loans as a
percentage of the total loan portfolio totaled 0.01% at June 30,
2021, compared to 0.16% at December 31, 2020 and 0.11% at June 30,
2020.
The Bank recorded $1,000 in net charge-offs in
the first six months of 2021, as compared to $681,000 in net
charge-offs for the same period last year. The prior year
charge-off related exclusively to the foreclosed property discussed
below.
At June 30, 2021, the Bank did not own any
foreclosed property, as compared to $3.8 million at both June 30,
2020 and December 31, 2020. The property was sold during the first
quarter of 2021.
The efficiency ratio fell to 21.37% for the
second quarter of 2021, as compared to 25.28% for the same period
last year. Operating expenses as a percentage of average assets
fell to 0.74% in the second quarter of 2021, as compared to 0.79%
for the same period last year. The Bank remains focused on reducing
waste through an ongoing process of continuous improvement.
These operational metrics reflect the Bank’s
disciplined focus on credit quality and expense management.
Chairman Robert H. Gaughen Jr. stated, “Returns
on equity and assets were strong in the second quarter of 2021,
although such performance should always be viewed cautiously,
especially when tailwinds are blowing strongly in our favor. We
remain focused on careful capital allocation, defensive
underwriting and disciplined cost control - the building blocks for
compounding shareholder capital through all stages of the economic
cycle. These remain constant, regardless of the macroeconomic
environment in which we operate.”
The Bank’s quarterly financial results are
summarized in the earnings release, but shareholders are encouraged
to read the Bank’s quarterly reports on Form 10-Q, which are
generally available several weeks after the earnings release. The
Bank expects to file Form 10-Q for the quarter ended June 30, 2021
with the FDIC on or about August 4, 2021.
Incorporated in 1834, Hingham Institution for
Savings is one of America’s oldest banks. The Bank maintains
offices in Boston, Nantucket, and Washington, D.C., and provides
commercial mortgage and banking services in the San Francisco Bay
Area.
The Bank’s shares of common stock are listed and
traded on The NASDAQ Stock Market under the symbol HIFS.
HINGHAM INSTITUTION FOR
SAVINGSSelected Financial Ratios
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Performance
Ratios |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
2.41 |
% |
|
2.83 |
% |
|
1.39 |
% |
|
2.58 |
% |
Return on average equity (1) |
25.28 |
|
|
25.51 |
|
|
14.50 |
|
|
23.67 |
|
Core return on average assets
(1) (5) |
1.61 |
|
|
1.91 |
|
|
1.45 |
|
|
1.93 |
|
Core return on average equity
(1) (5) |
16.92 |
|
|
17.24 |
|
|
15.08 |
|
|
17.72 |
|
Interest rate spread (1) (2) |
2.97 |
|
|
3.39 |
|
|
2.74 |
|
|
3.42 |
|
Net interest margin (1) (3) |
3.15 |
|
|
3.46 |
|
|
2.99 |
|
|
3.50 |
|
Operating expenses to average
assets (1) |
0.79 |
|
|
0.74 |
|
|
0.83 |
|
|
0.75 |
|
Efficiency ratio (4) |
25.28 |
|
|
21.37 |
|
|
27.76 |
|
|
21.70 |
|
Average equity to average
assets |
9.52 |
|
|
11.08 |
|
|
9.59 |
|
|
10.89 |
|
Average interest-earning assets
to average interest- bearing liabilities |
122.79 |
|
|
127.44 |
|
|
122.09 |
|
|
126.78 |
|
|
June 30, 2020 |
|
|
December 31, 2020 |
|
|
June 30, 2021 |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses/total
loans |
|
0.69 |
% |
|
|
0.69 |
% |
|
|
0.69 |
% |
Allowance for loan
losses/non-performing loans |
|
615.21 |
|
|
|
438.28 |
|
|
|
6,159.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans/total
loans |
|
0.11 |
|
|
|
0.16 |
|
|
|
0.01 |
|
Non-performing loans/total
assets |
|
0.10 |
|
|
|
0.14 |
|
|
|
0.01 |
|
Non-performing assets/total
assets |
|
0.24 |
|
|
|
0.27 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Related |
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
$ |
123.57 |
|
|
$ |
137.02 |
|
|
$ |
153.02 |
|
Market value per share |
$ |
167.78 |
|
|
$ |
216.00 |
|
|
$ |
290.50 |
|
Shares outstanding at end of
period |
|
2,136,900 |
|
|
|
2,137,900 |
|
|
|
2,142,400 |
|
(1) Annualized.
(2) Interest rate spread represents the
difference between the yield on interest-earning assets and the
cost of interest-bearing liabilities.
(3) Net interest margin represents net interest
income divided by average interest-earning assets.
(4) The efficiency ratio represents total
operating expenses, divided by the sum of net interest income and
total other income (loss), excluding gain (loss) on equity
securities, net and gain on disposal of fixed assets. Prior to the
first quarter of 2021, the Bank’s calculation of the efficiency
ratio included gains on disposal of fixed assets. This had the
impact of slightly improving the efficiency ratio in periods in
which the Bank recognized gains on the sale of former branch
locations. The Bank believes it is more conservative to exclude
such transactions. The efficiency ratio for the six months ended
June 30, 2020 stated above has been recalculated using this
method.
(5) Non-GAAP measurements that represent return
on average assets and return on average equity, excluding the
after-tax gain (loss) on equity securities, net, and the after-tax
gain on disposal of fixed assets. Core return on average assets and
core return on average equity for the six months ended June 30,
2020 have been recalculated accordingly.
HINGHAM INSTITUTION FOR
SAVINGSConsolidated Balance Sheets
(In thousands, except share
amounts) |
June 30, 2020 |
|
December 31, 2020 |
|
June 30, 2021 |
(Unaudited) |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
7,365 |
|
$ |
6,798 |
|
$ |
7,734 |
Federal Reserve and other
short-term investments |
|
214,489 |
|
|
227,188 |
|
|
198,590 |
Cash and cash equivalents |
|
221,854 |
|
|
233,986 |
|
|
206,324 |
|
|
|
|
|
|
|
|
|
CRA investment |
|
8,604 |
|
|
9,580 |
|
|
9,439 |
Other marketable equity
securities |
|
46,191 |
|
|
56,282 |
|
|
69,311 |
Equity securities, at fair value |
|
54,795 |
|
|
65,862 |
|
|
78,750 |
Securities available for sale, at
fair value |
|
9 |
|
|
6 |
|
|
5 |
Securities held to maturity, at
amortized cost |
|
— |
|
|
— |
|
|
3,500 |
Federal Home Loan Bank stock, at
cost |
|
20,390 |
|
|
19,345 |
|
|
14,732 |
Loans, net of allowance for loan
losses of $16,458 at June 30, 2020, $17,404 at December 31, 2020
and $18,231 at June 30, 2021 |
|
2,381,780 |
|
|
2,495,331 |
|
|
2,630,332 |
Foreclosed assets |
|
3,811 |
|
|
3,826 |
|
|
— |
Bank-owned life insurance |
|
12,844 |
|
|
12,657 |
|
|
12,822 |
Premises and equipment, net |
|
15,358 |
|
|
15,248 |
|
|
15,103 |
Accrued interest receivable |
|
5,054 |
|
|
5,267 |
|
|
5,158 |
Deferred income tax asset,
net |
|
1,729 |
|
|
763 |
|
|
— |
Other assets |
|
6,215 |
|
|
4,802 |
|
|
7,039 |
Total assets |
$ |
2,723,839 |
|
$ |
2,857,093 |
|
$ |
2,973,765 |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,764,714 |
|
$ |
1,825,700 |
|
$ |
1,985,442 |
Non-interest-bearing
deposits |
|
289,574 |
|
|
313,497 |
|
|
358,195 |
Total deposits |
|
2,054,288 |
|
|
2,139,197 |
|
|
2,343,637 |
Federal Home Loan Bank and
Federal Reserve Bank advances |
|
385,431 |
|
|
408,031 |
|
|
285,600 |
Mortgagors’ escrow accounts |
|
8,185 |
|
|
8,770 |
|
|
8,321 |
Accrued interest payable |
|
282 |
|
|
252 |
|
|
158 |
Deferred income tax liability,
net |
|
— |
|
|
— |
|
|
1,201 |
Other liabilities |
|
11,605 |
|
|
7,900 |
|
|
7,014 |
Total liabilities |
|
2,459,791 |
|
|
2,564,150 |
|
|
2,645,931 |
|
|
|
|
|
|
|
|
|
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;
2,136,900 shares issued and outstanding at June 30, 2020, 2,137,900
shares issued and outstanding at December 31, 2020 and 2,142,400
shares issued and outstanding at June 30, 2021 |
|
2,137 |
|
|
2,138 |
|
|
2,142 |
Additional paid-in capital |
|
12,352 |
|
|
12,460 |
|
|
12,715 |
Undivided profits |
|
249,559 |
|
|
278,345 |
|
|
312,977 |
Accumulated other comprehensive income |
|
— |
|
|
— |
|
|
— |
Total stockholders’ equity |
|
264,048 |
|
|
292,943 |
|
|
327,834 |
Total liabilities and stockholders’ equity |
$ |
2,723,839 |
|
$ |
2,857,093 |
|
$ |
2,973,765 |
HINGHAM INSTITUTION FOR
SAVINGSConsolidated Statements of
Income
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
(In thousands, except per
share amounts) |
|
2020 |
|
|
2021 |
|
2020 |
|
|
2021 |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
25,856 |
|
$ |
26,215 |
|
$ |
51,566 |
|
|
$ |
52,964 |
|
Debt securities |
|
— |
|
|
18 |
|
|
— |
|
|
|
18 |
|
Equity securities |
|
463 |
|
|
173 |
|
|
961 |
|
|
|
391 |
|
Federal Reserve and other short-term investments |
|
56 |
|
|
54 |
|
|
797 |
|
|
|
106 |
|
Total interest and dividend income |
|
26,375 |
|
|
26,460 |
|
|
53,324 |
|
|
|
53,479 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
4,392 |
|
|
1,692 |
|
|
10,333 |
|
|
|
3,799 |
|
Federal Home Loan Bank and Federal Reserve Bank advances |
|
942 |
|
|
212 |
|
|
3,889 |
|
|
|
656 |
|
Mortgage payable |
|
— |
|
|
— |
|
|
3 |
|
|
|
— |
|
Total interest expense |
|
5,334 |
|
|
1,904 |
|
|
14,225 |
|
|
|
4,455 |
|
Net interest income |
|
21,041 |
|
|
24,556 |
|
|
39,099 |
|
|
|
49,024 |
|
Provision for loan losses |
|
625 |
|
|
550 |
|
|
1,763 |
|
|
|
828 |
|
Net interest income, after provision for loan losses |
|
20,416 |
|
|
24,006 |
|
|
37,336 |
|
|
|
48,196 |
|
Other income (loss): |
|
|
|
|
|
|
|
|
|
|
|
Customer service fees on deposits |
|
148 |
|
|
192 |
|
|
320 |
|
|
|
373 |
|
Increase in cash surrender value of bank-owned life insurance |
|
59 |
|
|
84 |
|
|
117 |
|
|
|
165 |
|
Gain (loss) on equity securities, net |
|
6,930 |
|
|
6,346 |
|
|
(1,144 |
) |
|
|
9,713 |
|
Gain on disposal of fixed assets |
|
— |
|
|
2,337 |
|
|
218 |
|
|
|
2,337 |
|
Miscellaneous |
|
28 |
|
|
21 |
|
|
81 |
|
|
|
36 |
|
Total other income (loss) |
|
7,165 |
|
|
8,980 |
|
|
(408 |
) |
|
|
12,624 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
3,287 |
|
|
3,459 |
|
|
6,667 |
|
|
|
6,985 |
|
Occupancy and equipment |
|
474 |
|
|
325 |
|
|
929 |
|
|
|
731 |
|
Data processing |
|
475 |
|
|
482 |
|
|
964 |
|
|
|
943 |
|
Deposit insurance |
|
254 |
|
|
227 |
|
|
437 |
|
|
|
450 |
|
Foreclosure and related |
|
28 |
|
|
7 |
|
|
154 |
|
|
|
(75 |
) |
Marketing |
|
104 |
|
|
104 |
|
|
284 |
|
|
|
228 |
|
Other general and administrative |
|
756 |
|
|
708 |
|
|
1,563 |
|
|
|
1,500 |
|
Total operating expenses |
|
5,378 |
|
|
5,312 |
|
|
10,998 |
|
|
|
10,762 |
|
Income before income
taxes |
|
22,203 |
|
|
27,674 |
|
|
25,930 |
|
|
|
50,058 |
|
Income tax provision |
|
5,865 |
|
|
7,252 |
|
|
7,407 |
|
|
|
13,286 |
|
Net income |
$ |
16,338 |
|
$ |
20,422 |
|
$ |
18,523 |
|
|
$ |
36,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per
share |
$ |
0.43 |
|
$ |
0.51 |
|
$ |
0.85 |
|
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
2,137 |
|
|
2,142 |
|
|
2,137 |
|
|
|
2,140 |
|
Diluted |
|
2,176 |
|
|
2,200 |
|
|
2,180 |
|
|
|
2,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
7.65 |
|
$ |
9.54 |
|
$ |
8.67 |
|
|
$ |
17.18 |
|
Diluted |
$ |
7.50 |
|
$ |
9.28 |
|
$ |
8.50 |
|
|
$ |
16.73 |
|
HINGHAM INSTITUTION FOR
SAVINGSNet Interest Income Analysis
|
Three Months Ended June 30, |
|
|
2020 |
|
|
2021 |
|
|
AVERAGE BALANCE |
|
INTEREST |
|
YIELD/ RATE (8) |
|
|
AVERAGE BALANCE |
|
INTEREST |
|
YIELD/ RATE (8) |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) (2) |
$ |
2,379,132 |
|
$ |
25,856 |
|
4.35 |
% |
|
$ |
2,567,437 |
|
$ |
26,215 |
|
4.08 |
% |
Securities (3) (4) |
|
69,901 |
|
|
463 |
|
2.65 |
|
|
|
65,463 |
|
|
191 |
|
1.17 |
|
Federal Reserve and other
short-term investments |
|
222,960 |
|
|
56 |
|
0.10 |
|
|
|
205,636 |
|
|
54 |
|
0.11 |
|
Total interest-earning assets |
|
2,671,993 |
|
|
26,375 |
|
3.95 |
|
|
|
2,838,536 |
|
|
26,460 |
|
3.73 |
|
Other assets |
|
44,066 |
|
|
|
|
|
|
|
|
51,008 |
|
|
|
|
|
|
Total assets |
$ |
2,716,059 |
|
|
|
|
|
|
|
$ |
2,889,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
(5) |
$ |
1,592,458 |
|
|
4,392 |
|
1.10 |
|
|
$ |
1,970,226 |
|
|
1,692 |
|
0.34 |
|
Borrowed funds |
|
583,532 |
|
|
942 |
|
0.65 |
|
|
|
257,117 |
|
|
212 |
|
0.33 |
|
Total interest-bearing liabilities |
|
2,175,990 |
|
|
5,334 |
|
0.98 |
|
|
|
2,227,343 |
|
|
1,904 |
|
0.34 |
|
Non-interest-bearing
deposits |
|
272,418 |
|
|
|
|
|
|
|
|
335,541 |
|
|
|
|
|
|
Other liabilities |
|
9,107 |
|
|
|
|
|
|
|
|
6,503 |
|
|
|
|
|
|
Total liabilities |
|
2,457,515 |
|
|
|
|
|
|
|
|
2,569,387 |
|
|
|
|
|
|
Stockholders’ equity |
|
258,544 |
|
|
|
|
|
|
|
|
320,157 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,716,059 |
|
|
|
|
|
|
|
$ |
2,889,544 |
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
21,041 |
|
|
|
|
|
|
|
$ |
24,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average spread |
|
|
|
|
|
|
2.97 |
% |
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (6) |
|
|
|
|
|
|
3.15 |
% |
|
|
|
|
|
|
|
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets to average interest-bearing
liabilities (7) |
|
122.79 |
% |
|
|
|
|
|
|
|
127.44 |
% |
|
|
|
|
|
(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. |
(4) |
|
Includes Federal Home Loan Bank
stock. |
(5) |
|
Includes mortgagors' escrow
accounts. |
(6) |
|
Net interest income divided by
average total interest-earning assets. |
(7) |
|
Total interest-earning assets
divided by total interest-bearing liabilities. |
(8) |
|
Annualized. |
HINGHAM INSTITUTION FOR
SAVINGSNet Interest Income Analysis
|
Six Months Ended June 30, |
|
|
2020 |
|
|
2021 |
|
|
AVERAGE BALANCE |
|
INTEREST |
|
YIELD/ RATE (8) |
|
|
AVERAGE BALANCE |
|
INTEREST |
|
YIELD/ RATE (8) |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) (2) |
$ |
2,325,075 |
|
$ |
51,566 |
|
4.44 |
% |
|
$ |
2,532,473 |
|
$ |
52,964 |
|
4.18 |
% |
Securities (3) (4) |
|
67,601 |
|
|
961 |
|
2.84 |
|
|
|
64,699 |
|
|
409 |
|
1.26 |
|
Federal Reserve and other
short-term investments |
|
225,565 |
|
|
797 |
|
0.71 |
|
|
|
205,263 |
|
|
106 |
|
0.10 |
|
Total interest-earning assets |
|
2,618,241 |
|
|
53,324 |
|
4.07 |
|
|
|
2,802,435 |
|
|
53,479 |
|
3.82 |
|
Other assets |
|
45,302 |
|
|
|
|
|
|
|
|
49,366 |
|
|
|
|
|
|
Total assets |
$ |
2,663,543 |
|
|
|
|
|
|
|
$ |
2,851,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
(5) |
$ |
1,552,901 |
|
|
10,333 |
|
1.33 |
|
|
$ |
1,926,769 |
|
|
3,799 |
|
0.39 |
|
Borrowed funds |
|
591,596 |
|
|
3,892 |
|
1.32 |
|
|
|
283,752 |
|
|
656 |
|
0.46 |
|
Total interest-bearing liabilities |
|
2,144,497 |
|
|
14,225 |
|
1.33 |
|
|
|
2,210,521 |
|
|
4,455 |
|
0.40 |
|
Non-interest-bearing
deposits |
|
255,212 |
|
|
|
|
|
|
|
|
323,736 |
|
|
|
|
|
|
Other liabilities |
|
8,347 |
|
|
|
|
|
|
|
|
6,873 |
|
|
|
|
|
|
Total liabilities |
|
2,408,056 |
|
|
|
|
|
|
|
|
2,541,130 |
|
|
|
|
|
|
Stockholders’ equity |
|
255,487 |
|
|
|
|
|
|
|
|
310,671 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,663,543 |
|
|
|
|
|
|
|
$ |
2,851,801 |
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
39,099 |
|
|
|
|
|
|
|
$ |
49,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average spread |
|
|
|
|
|
|
2.74 |
% |
|
|
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (6) |
|
|
|
|
|
|
2.99 |
% |
|
|
|
|
|
|
|
3.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets to average interest-bearing
liabilities (7) |
|
122.09 |
% |
|
|
|
|
|
|
|
126.78 |
% |
|
|
|
|
|
(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. |
(4) |
|
Includes Federal Home Loan Bank
stock. |
(5) |
|
Includes mortgagors' escrow
accounts. |
(6) |
|
Net interest income divided by
average total interest-earning assets. |
(7) |
|
Total interest-earning assets
divided by total interest-bearing liabilities. |
(8) |
|
Annualized. |
HINGHAM INSTITUTION FOR
SAVINGS
Non-GAAP Reconciliation
The table below presents the reconciliation between net income
and core net income, a non-GAAP measurement that represents net
income excluding the after-tax gain (loss) on equity securities,
net, and after-tax gain on disposal of fixed assets.
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(In thousands, unaudited) |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
16,338 |
|
|
$ |
20,422 |
|
|
$ |
18,523 |
|
|
$ |
36,772 |
|
(Gain) loss on equity securities, net |
|
|
(6,930 |
) |
|
|
(6,346 |
) |
|
|
1,144 |
|
|
|
(9,713 |
) |
Income tax expense (benefit) (1) |
|
|
1,528 |
|
|
|
1,399 |
|
|
|
(252 |
) |
|
|
2,141 |
|
Gain on disposal of fixed assets |
|
|
— |
|
|
|
(2,337 |
) |
|
|
(218 |
) |
|
|
(2,337 |
) |
Income tax expense |
|
|
— |
|
|
|
657 |
|
|
|
61 |
|
|
|
657 |
|
Core net income |
|
$ |
10,936 |
|
|
$ |
13,795 |
|
|
$ |
19,258 |
|
|
$ |
27,520 |
|
(1) The equity securities are held in a
tax-advantaged subsidiary corporation. The income tax effect of the
(gain) loss on equity securities, net, was calculated using
the effective tax rate applicable to the subsidiary.
CONTACT: Patrick R. Gaughen, President and Chief
Operating Officer (781) 783-1761
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