Hingham Savings Reports Third Quarter 2023 Results

Rhea-AI Summary

Hingham Institution for Savings announces Q3 2023 results

Positive

• Net income for Q3 2023 decreased by 69% compared to the same period in 2022
• Core net income for Q3 2023 decreased by 80% compared to the same period in 2022
• Total assets grew by 5% year-to-date and 7% from September 2022

Negative

• Non-interest-bearing deposits declined by 10% year-to-date and 14% from September 2022
• Wholesale deposits declined by 26% year-to-date and 29% from September 2022

HINGHAM, Mass., Oct. 13, 2023 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham, Massachusetts announced results for the quarter ended September 30, 2023.

Earnings

Net income for the quarter ended September 30, 2023 was $3,297,000 or $1.53 per share basic and $1.50 per share diluted, as compared to $10,499,000 or $4.89 per share basic and $4.77 per share diluted for the same period last year. The Bank’s annualized return on average equity for the third quarter of 2023 was 3.25%, and the annualized return on average assets was 0.31%, as compared to 11.07% and 1.05% for the same period in 2022. Net income per share (diluted) for the third quarter of 2023 decreased by 69% over the same period in 2022.

Core net income for the quarter ended September 30, 2023, 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 $2,895,000 or $1.35 per share basic and $1.32 per share diluted, as compared to $14,491,000 or $6.75 per share basic and $6.58 per share diluted for the same period last year. The Bank’s annualized core return on average equity for the third quarter of 2023 was 2.85%, and the annualized core return on average assets was 0.27%, as compared to 15.28% and 1.45% for the same period in 2022. Core net income per share (diluted) for the third quarter of 2023 decreased by 80% over the same period in 2022.

Net income for the nine months ended September 30, 2023 was $20,056,000 or $9.33 per share basic and $9.14 per share diluted, as compared to $25,554,000 or $11.92 per share basic and $11.60 per share diluted for the same period last year.   The Bank’s annualized return on average equity for the first nine months of 2023 was 6.70%, and the annualized return on average assets was 0.64%, as compared to 9.18% and 0.91% for the same period in 2022. Net income per share (diluted) for the first nine months of 2023 decreased by 21% over the same period in 2022.

Core net income for the nine months ended September 30, 2023, 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 $12,686,000 or $5.90 per share basic and $5.78 per share diluted, as compared to $44,856,000 or $20.92 per share basic and $20.36 per share diluted for the same period last year. The Bank’s annualized core return on average equity for the first nine months of 2023 was 4.24%, and the annualized core return on average assets was 0.41%, as compared to 16.11% and 1.60% for the same period in 2022. Core net income per share (diluted) for the first nine months of 2023 decreased by 72% over the same period in 2022.

See Page 11 for a reconciliation between Generally Accepted Accounting Principles (“GAAP”) net income and core net income. In calculating core net income, the Bank did not make any adjustments other than those relating to after-tax gains and losses on equity securities, realized and unrealized, and after-tax gains on the disposal of fixed assets.

Balance Sheet and Capital Management

Total assets were $4.357 billion at September 30, 2023, representing 5% annualized growth year-to-date and 7% growth from September 30, 2022.

Net loans increased to $3.809 billion at September 30, 2023, representing 5% annualized growth year-to-date and 7% growth from September 30, 2022. Lending was concentrated in the Boston and Washington D.C. markets and remained focused on multifamily commercial real estate. Lending in the San Francisco Bay Area market has been relatively limited in 2023; the Bank continues to evaluate new opportunities, but the Bank’s customers have been less active given market conditions. The Bank continues to search for talented commercial bankers in San Francisco with experience in multifamily lending and strong deposit-focused relationships.

Retail and business deposits were $1.922 billion at September 30, 2023, representing 2% annualized growth year-to-date and 2% growth from September 30, 2022. Non-interest-bearing deposits, included in retail and business deposits, decreased to $359.1 million at September 30, 2023, representing a 10% annualized decline year-to-date and 14% decline from September 30, 2022. A portion of these non-interest bearing deposits have shifted towards higher-rate alternatives at the Bank. The Bank continued to focus on developing new relationships with commercial, non-profit, and existing customers. The stability of the Bank’s balance sheet, as well as full and unlimited deposit insurance through the Bank’s participation in the Massachusetts Depositors Insurance Fund, has historically been appealing to customers in times of uncertainty.

Shortly before the conclusion of the second quarter, the Bank obtained regulatory approval to exercise branch powers at its office in Washington, D.C. in Georgetown. In conjunction with these powers, we continue to search for commercial bankers to join our Specialized Deposit Group in Washington, D.C.

Wholesale deposits, which include brokered and listing service time deposits, were $493.8 million at September 30, 2023, representing a 26% annualized decline year-to-date and a 29% decline from September 30, 2022, as the Bank continued to manage its wholesale funding mix between wholesale time deposits and Federal Home Loan Bank advances in order to mitigate the negative impact of increasing short term rates in the cost of funds. This decline in wholesale deposits was primarily driven by the decline in the Bank’s listing service time deposits, as the Bank opted to replace this funding with brokered certificates of deposit and borrowings from the Federal Home Loan Bank. Pricing in the listing service market has generally exceeded other wholesale funding sources over the last year.

Borrowings from the Federal Home Loan Bank totaled $1.509 billion at September 30, 2023, representing a 24% annualized growth year-to-date, and a 40% increase from September 30, 2022. As of September 30, 2023, the Bank maintained $544.0 million in immediately available borrowing capacity at the Federal Home Loan Bank of Boston and the Federal Reserve Bank, in addition to the $334.6 million cash balance held at the Federal Reserve Bank.

Book value per share was $186.74 as of September 30, 2023, representing 5% annualized growth year-to-date and 6% growth from September 30, 2022. In addition to the increase in book value per share, the Bank has declared $3.15 in dividends per share since September 30, 2022, including a special dividend of $0.63 per share declared during the fourth quarter of 2022.

On September 20, 2023, the Bank’s Board of Directors declared a regular cash dividend of $0.63 per share. The dividend will be paid on November 8, 2023 to stockholders of record as of October 30, 2023. This will be the Bank’s 119th consecutive quarterly dividend. The Bank has also declared special cash dividends in each of the last twenty-eight 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 September 30, 2023 decreased 171 basis points to 1.05%, as compared to 2.76% for the same period last year. The Bank experienced a substantial increase in the cost of interest-bearing liabilities when compared to the prior year. This was driven primarily by the repricing of the Bank’s wholesale borrowings, wholesale deposits and higher rates on the Bank’s retail and commercial deposits. During this period, the increase in the cost of funds was partially offset by a higher yield on interest-earning assets, driven primarily by an increase in the yield on loans, an increase in the interest on reserves held at the Federal Reserve Bank of Boston and a higher Federal Home Loan Bank of Boston stock dividend.

In a linked quarter comparison, the net interest margin for the quarter ended September 30, 2023 decreased 23 basis points to 1.05%, as compared to 1.28% in the quarter ended June 30, 2023. This was primarily the result of the continued increase in the cost of interest-bearing liabilities, driven primarily by the repricing of certain long-term wholesale deposits that matured in July 2023. This was partially offset by an increase in the yield on loans and an increase in the interest on reserve balances held at the Federal Reserve Bank of Boston from the prior quarter. The increase in the yield on loans was driven by both new loan originations at higher rates and the repricing of existing adjustable rate loans. Over the course of the third quarter, the Bank experienced declining pressure on negotiated money market deposit rates and certificates of deposits. The Bank also found significantly greater pricing leverage on newly committed and originated credits.

The net interest margin for the nine months ended September 30, 2023 decreased 182 basis points to 1.26%, as compared to 3.08% for the same period last year. The Bank experienced a substantial increase in the cost of interest-bearing liabilities when compared to the prior year. This was driven primarily by the repricing of the Bank’s wholesale borrowings, wholesale deposits and higher rates on the Bank’s retail and commercial deposits. During this period, the increase in the cost of funds was partially offset by a higher yield on interest-earning assets, driven primarily by an increase in the interest on reserve held at the Federal Reserve Bank of Boston, an increase in the yield on loans and a higher Federal Home Loan Bank of Boston stock dividend.

Key credit and operational metrics remained strong in the third quarter. At September 30, 2023, non-performing assets totaled 0.00% of total assets, compared to 0.03% at December 31, 2022 and 0.02% at September 30, 2022. Non-performing loans as a percentage of the total loan portfolio totaled 0.01% at September 30, 2023, compared to 0.03% at December 31, 2022 and 0.02% at September 30, 2022. The Bank had no non-performing commercial real estate loans at September 30, 2023. The Bank did not record any charge-offs in the first nine months of 2023, as compared to $50,000 of net recoveries in the first nine months of 2022.

The Bank did not own any foreclosed property on September 30, 2023, December 31, 2022 and September 30, 2022. In the first quarter of 2023, the Bank foreclosed on a small commercial property in Massachusetts and purchased the property at auction. The Bank subsequently sold the property within the quarter and recovered all principal, interest and expenses. The Bank also recognized an additional $85,000 gain on sale, reflected as a contra expense in foreclosure and related expense in the Consolidated Statement of Net Income.

The efficiency ratio, as defined on page 6 below, increased to 62.55% for the third quarter of 2023, as compared to 24.98% for the same period last year. Operating expenses as a percentage of average assets decreased to 0.67% in the third quarter of 2023, as compared to 0.69% for the same period last year. As the efficiency ratio can be significantly influenced by the level of net interest income, the Bank utilizes these paired figures together to assess its operational efficiency over time. During periods of significant net interest income volatility, the efficiency ratio in isolation may over or understate the underlying operational efficiency of the Bank. The Bank remains focused on reducing waste through an ongoing process of continuous improvement and standard work that supports operational leverage.

These operational metrics reflect the Bank’s disciplined focus on credit quality and expense management.

Current Expected Credit Losses (“CECL”)

On January 1, 2023, the Bank adopted ASU 2016-13 - Measurement of Credit Losses on Financial Instruments, and recorded a one-time transition amount of $545,000, net of taxes, as a decrease to retained earnings. This amount represents additional reserves for loans that existed upon adopting the new guidance. No reserves were recorded for unfunded commitments, based upon management’s evaluation of the probability of funding and risk of loss, which indicated the required reserve was not material. The adoption of CECL did not have a material impact on the Bank’s regulatory capital ratios.

Chairman Robert H. Gaughen Jr. stated, “Returns on equity and assets in the third quarter remained significantly lower than our long-term performance, reflecting the challenge from the increase in short-term interest rates over the last twelve months and the inversion of the yield curve. As the Federal Reserve approaches the level of short-term rates that is sufficiently restrictive to return inflation to its target, the yield curve has started to steepen again. This will eventually allow us to achieve more satisfactory returns as we obtain higher rates on new and adjusting loans and incremental funding pressure abates.

While the current market environment is extraordinarily challenging, the Bank’s business model has been built over time to compound shareholder capital over an economic cycle. During all such periods, 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.

It is important during difficult periods that we continue to prioritize long-term investments, despite the temporary but very significant pressure on margins and lower net income. This means working to attract new core deposit and loan customers, as well as talented staff that can help us continue to build our business well into the future.”

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 September 30, 2023 with the Federal Deposit Insurance Corporation (FDIC) on or about November 7, 2023.

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 SAVINGS Selected Financial Ratios
	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2023			2022			2023
(Unaudited)
Key Performance Ratios
Return on average assets (1)	1.05	%		0.31	%		0.91	%		0.64	%
Return on average equity (1)	11.07			3.25			9.18			6.70
Core return on average assets (1) (5)	1.45			0.27			1.60			0.41
Core return on average equity (1) (5)	15.28			2.85			16.11			4.24
Interest rate spread (1) (2)	2.55			0.39			2.94			0.65
Net interest margin (1) (3)	2.76			1.05			3.08			1.26
Operating expenses to average assets (1)	0.69			0.67			0.69			0.68
Efficiency ratio (4)	24.98			62.55			22.65			53.69
Average equity to average assets	9.48			9.59			9.92			9.58
Average interest-earning assets to average interest-bearing liabilities	123.53			120.53			124.71			121.28

	September 30, 2022					December 31, 2022				September 30, 2023
(Unaudited)
Asset Quality Ratios
Allowance for credit losses/total loans			0.68	%		0.68		%			0.69	%
Allowance for credit losses/non-performing loans			3,336.25				2,139.39				13,528.72
Non-performing loans/total loans			0.02				0.03				0.01
Non-performing loans/total assets			0.02				0.03				0.00
Non-performing assets/total assets			0.02				0.03				0.00
Share Related
Book value per share	$	175.52				$	179.74			$	186.74
Market value per share	$	251.11				$	275.96			$	186.75
Shares outstanding at end of period		2,145,400					2,147,400				2,152,400

(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 the after-tax gain on disposal of fixed assets.

(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.

HINGHAM INSTITUTION FOR SAVINGS Consolidated Balance Sheets
(In thousands, except share amounts)	September 30, 2022			December 31, 2022			September 30, 2023
(Unaudited)
ASSETS
Cash and due from banks	$	6,682		$	7,936		$	6,122
Federal Reserve and other short-term investments		320,346			354,097			347,419
Cash and cash equivalents		327,028			362,033			353,541
CRA investment		8,212			8,229			7,973
Other marketable equity securities		64,062			54,967			65,213
Equity securities, at fair value		72,274			63,196			73,186
Securities held to maturity, at amortized cost		3,500			3,500			3,500
Federal Home Loan Bank stock, at cost		44,716			52,606			62,457
Loans, net of allowance for credit losses of $24,388 at September 30, 2022, $24,989 at December 31, 2022 and $26,381 at September 30, 2023		3,562,745			3,657,782			3,808,599
Bank-owned life insurance		13,232			13,312			13,562
Premises and equipment, net		17,213			17,859			17,027
Accrued interest receivable		6,380			7,122			7,722
Deferred income tax asset, net		4,918			4,061			1,949
Other assets		10,108			12,328			15,179
Total assets	$	4,062,114		$	4,193,799		$	4,356,722

LIABILITIES AND STOCKHOLDERS’ EQUITY

Interest-bearing deposits	$	2,169,763		$	2,118,045		$	2,056,582
Non-interest-bearing deposits		418,753			387,244			359,070
Total deposits		2,588,516			2,505,289			2,415,652
Federal Home Loan Bank advances		1,075,000			1,276,000			1,509,000
Mortgagors’ escrow accounts		11,764			12,323			13,773
Accrued interest payable		2,536			4,527			8,311
Other liabilities		7,740			9,694			8,039
Total liabilities		3,685,556			3,807,833			3,954,775
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; 2,145,400 shares issued and outstanding at September 30, 2022, 2,147,400 issued and outstanding at December 31, 2022 and 2,152,400 shares issued and outstanding at September 30, 2023		2,145			2,147			2,152
Additional paid-in capital		12,914			13,061			13,439
Undivided profits		361,499			370,758			386,356
Total stockholders’ equity		376,558			385,966			401,947
Total liabilities and stockholders’ equity	$	4,062,114		$	4,193,799		$	4,356,722

HINGHAM INSTITUTION FOR SAVINGS Consolidated Statements of Income
								Three Months Ended							Nine Months Ended
								September 30,							September 30,
(In thousands, except per share amounts)									2022				2023		2022				2023
(Unaudited)
Interest and dividend income:
		Loans						$	34,209			$	40,245		$	96,375			$		114,467
		Debt securities							33				32			99					98
		Equity securities							492				1,163			1,036					3,110
		Federal Reserve and other short-term investments							1,660				3,598			2,289					10,078
			Total interest and dividend income						36,394				45,038			99,799					127,753
Interest expense:
		Deposits							4,483				20,010			8,089					50,618
		Federal Home Loan Bank and Federal Reserve Bank advances							4,608				14,042			6,531					38,208
			Total interest expense						9,091				34,052			14,620					88,826
			Net interest income						27,303				10,986			85,179					38,927
Provision for credit losses									301				241			3,908					847
Net interest income, after provision for credit losses									27,002				10,745			81,271					38,080
Other income (loss):
	Customer service fees on deposits								141				131			456					410
	Increase in cash surrender value of bank-owned life insurance								82				84			252					250
	Gain (loss) on equity securities, net								(5,117	)			486			(24,756	)				9,424
	Gain on disposal of fixed assets								—				44			—					44
	Miscellaneous								21				59			67					176
			Total other income (loss)						(4,873	)			804			(23,981	)				10,304
Operating expenses:
		Salaries and employee benefits							4,172				4,069			11,678					12,560
		Occupancy and equipment							339				435			1,028					1,206
		Data processing							691				743			1,953					2,142
		Deposit insurance							546				666			1,347					1,906
		Foreclosure and related							18				29			5					(19	)
		Marketing							246				152			752					641
		Other general and administrative							869				949			2,706					2,913
			Total operating expenses						6,881				7,043			19,469					21,349
Income before income taxes									15,248				4,506			37,821					27,035
Income tax provision									4,749				1,209			12,267					6,979
			Net income					$	10,499			$	3,297		$	25,554			$		20,056
Cash dividends declared per share								$	0.61			$	0.63		$	1.77			$		1.89
Weighted average shares outstanding:
		Basic							2,145				2,151			2,144					2,149
		Diluted							2,201				2,192			2,203					2,195
Earnings per share:
		Basic						$	4.89			$	1.53		$	11.92			$		9.33
		Diluted						$	4.77			$	1.50		$	11.60			$		9.14

HINGHAM INSTITUTION FOR SAVINGS Net Interest Income Analysis
	Three Months Ended
	September 30, 2022									June 30, 2023									September 30, 2023
	Average Balance (9)			Interest		Yield/ Rate (10)				Average Balance (9)				Interest	Yield/ Rate (10)				Average Balance (9)					Interest	Yield/ Rate (10)
(Dollars in thousands)
(Unaudited)
Assets
Loans (1) (2)	$	3,558,317		$	34,209		3.85	%		$	3,725,717		$	37,806		4.06	%		$	3,802,045			$	40,245		4.23	%
Securities (3) (4)		114,946			525		1.83				103,153			1,077		4.18				107,432				1,195		4.45
Short-term investments (5)		285,832			1,660		2.32				245,426			3,106		5.06				264,160				3,598		5.45
Total interest-earning assets		3,959,095			36,394		3.68				4,074,296			41,989		4.12				4,173,637				45,038		4.32
Other assets		42,768									56,658									61,529
Total assets	$	4,001,863								$	4,130,954								$	4,235,166
Liabilities and stockholders’ equity:			`
Interest-bearing deposits (6)	$	2,174,098			4,483		0.82	%		$	2,196,558			16,808		3.06	%		$	2,200,952				20,010		3.64	%
Borrowed funds		1,030,979			4,608		1.79				1,152,473			12,151		4.22				1,261,652				14,042		4.45
Total interest-bearing liabilities		3,205,077			9,091		1.13				3,349,031			28,959		3.46				3,462,604				34,052		3.93
Non-interest-bearing deposits		410,403									371,262									353,543
Other liabilities		7,092									11,636									12,958
Total liabilities		3,622,572									3,731,929									3,829,105
Stockholders’ equity		379,291									399,025									406,061
Total liabilities and stockholders’ equity	$	4,001,863								$	4,130,954								$	4,235,166
Net interest income				$	27,303								$	13,030									$	10,986
Weighted average interest rate spread							2.55	%								0.66	%									0.39	%
Net interest margin (7)							2.76	%								1.28	%									1.05	%
Average interest-earning assets to average interest-bearing liabilities (8)		123.53	%								121.66	%								120.53	%

(1	)	Before allowance for credit 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 cash held at the Federal Reserve Bank.
(6	)	Includes mortgagors' escrow accounts.
(7	)	Net interest income divided by average total interest-earning assets.
(8	)	Total interest-earning assets divided by total interest-bearing liabilities.
(9	)	Average balances are calculated on a daily basis.
(10	)	Annualized.

HINGHAM INSTITUTION FOR SAVINGS Net Interest Income Analysis
	Nine Months Ended September 30,
	2022									2023
	Average Balance (9)			Interest			Yield/ Rate (10)			Average Balance (9)			Interest			Yield/ Rate (10)
(Dollars in thousands)
(Unaudited)
Loans (1) (2)	$	3,330,511		$	96,375		3.86	%		$	3,737,198		$	114,467		4.08	%
Securities (3) (4)		106,481			1,135		1.42				103,454			3,208		4.13
Short-term investments (5)		255,627			2,289		1.19				267,922			10,078		5.02
Total interest-earning assets		3,692,619			99,799		3.60				4,108,574			127,753		4.15
Other assets		47,707									57,360
Total assets	$	3,740,326								$	4,165,934
Interest-bearing deposits (6)	$	2,084,032			8,089		0.52	%		$	2,215,719			50,618		3.05	%
Borrowed funds		876,915			6,531		0.99				1,172,019			38,208		4.35
Total interest-bearing liabilities		2,960,947			14,620		0.66				3,387,738			88,826		3.50
Non-interest-bearing deposits		400,848									367,541
Other liabilities		7,377									11,362
Total liabilities		3,369,172									3,766,641
Stockholders’ equity		371,154									399,293
Total liabilities and stockholders’ equity	$	3,740,326								$	4,165,934
Net interest income				$	85,179								$	38,927
Weighted average interest rate spread							2.94	%								0.65	%
Net interest margin (7)							3.08	%								1.26	%
Average interest-earning assets to average interest-bearing liabilities (8)		124.71	%								121.28	%

(1	)	Before allowance for credit 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 cash held at the Federal Reserve Bank.
(6	)	Includes mortgagors' escrow accounts.
(7	)	Net interest income divided by average total interest-earning assets.
(8	)	Total interest-earning assets divided by total interest-bearing liabilities.
(9	)	Average balances are calculated on a daily basis.
(10	)	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								Nine Months Ended
		September 30,								September 30,
(In thousands, unaudited)			2022				2023			2022				2023
Non-GAAP reconciliation:
Net income		$	10,499			$	3,297			$	25,554			$		20,056
(Gain) loss on equity securities, net			5,117				(486	)			24,756					(9,424	)
Income tax expense (benefit) (1)			(1,125	)			116				(5,454	)				2,086
Gain on disposal of fixed assets			—				(44	)			—					(44	)
Income tax expense			—				12				—					12
Core net income		$	14,491			$	2,895			$	44,856			$		12,686

(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

FAQ

What was the net income for Q3 2023?

$3,297,000 or $1.53 per share basic and $1.50 per share diluted

What was the annualized return on average equity for Q3 2023?

3.25%

What was the annualized return on average assets for Q3 2023?

0.31%

What were the net loans at September 30, 2023?

$3.809 billion

What were the retail and business deposits at September 30, 2023?

$1.922 billion

What was the net interest margin for Q3 2023?

1.05%

What were the non-performing assets at September 30, 2023?

0.00% of total assets

What was the efficiency ratio for Q3 2023?

62.55%