Hingham Savings Reports Third Quarter 2024 Results
Hingham Institution for Savings (NASDAQ: HIFS) reported its Q3 2024 financial results. Net income for the quarter was $5.846 million, or $2.66 per share diluted, up 77% from $1.50 per share a year ago. Annualized return on average equity increased to 5.52%, with return on average assets at 0.54%. Core net income per share increased by 9% to $1.44. For the first nine months of 2024, net income was $16.816 million, a 16% decrease from the same period in 2023. Core net income per share dropped 40% to $3.45. Total assets were $4.450 billion, a 1% decline year-to-date but a 2% increase from last year. The bank's net interest margin rose to 1.07%, and non-performing assets were minimal at 0.04% of total assets. Retail and business deposits grew 8% year-to-date. The bank declared a regular cash dividend of $0.63 per share, payable on November 13, 2024.
L'Istituto di Risparmio di Hingham (NASDAQ: HIFS) ha riportato i risultati finanziari del terzo trimestre 2024. Il reddito netto per il trimestre è stato di 5,846 milioni di dollari, pari a 2,66 dollari per azione diluita, in aumento del 77% rispetto a 1,50 dollari per azione dell'anno precedente. Il rendimento annualizzato sul capitale medio è aumentato al 5,52%, con un rendimento sugli attivi medi dello 0,54%. L'utile netto core per azione è aumentato del 9% a 1,44 dollari. Per i primi nove mesi del 2024, il reddito netto è stato di 16,816 milioni di dollari, con una diminuzione del 16% rispetto allo stesso periodo del 2023. L'utile netto core per azione è sceso del 40% a 3,45 dollari. Le attività totali ammontavano a 4,450 miliardi di dollari, con un calo dell'1% da inizio anno ma un aumento del 2% rispetto all'anno scorso. Il margine d'interesse netto della banca è salito all'1,07%, e le attività non performanti erano minime, pari allo 0,04% delle attività totali. I depositi al dettaglio e aziendali sono cresciuti dell'8% da inizio anno. La banca ha dichiarato un dividendo regolare in contante di 0,63 dollari per azione, pagabile il 13 novembre 2024.
La Institución de Ahorros de Hingham (NASDAQ: HIFS) informó sus resultados financieros para el tercer trimestre de 2024. El ingreso neto para el trimestre fue de 5.846 millones de dólares, o 2.66 dólares por acción diluida, un aumento del 77% respecto a 1.50 dólares por acción del año anterior. El rendimiento anualizado sobre el capital promedio aumentó al 5.52%, con un retorno sobre los activos promedio del 0.54%. El ingreso neto básico por acción aumentó un 9% a 1.44 dólares. Para los primeros nueve meses de 2024, el ingreso neto fue de 16.816 millones de dólares, una disminución del 16% en comparación con el mismo período de 2023. El ingreso neto básico por acción cayó un 40% a 3.45 dólares. Los activos totales fueron de 4.450 millones de dólares, una disminución del 1% desde el comienzo del año, pero un aumento del 2% en comparación con el año pasado. El margen de interés neto del banco aumentó al 1.07%, y los activos no rentables fueron mínimos, representando el 0.04% de los activos totales. Los depósitos minoristas y comerciales crecieron un 8% desde el comienzo del año. El banco declaró un dividendo en efectivo regular de 0.63 dólares por acción, pagadero el 13 de noviembre de 2024.
HINGHAM 저축기관(NASDAQ: HIFS)는 2024년 3분기 재무 결과를 발표했습니다. 분기 순이익은 584만 6천 달러, 즉 희석 후 주당 2.66 달러로, 작년 1.50 달러 대비 77% 증가했습니다. 평균 자기자본으로 계산한 연환산 수익률은 5.52%로 증가했고, 평균 자산 수익률은 0.54%였습니다. 핵심 순이익은 주당 1.44 달러로 9% 증가했습니다. 2024년 첫 9개월 동안 순이익은 1,681만 6천 달러로, 2023년 같은 기간 대비 16% 감소했습니다. 핵심 순이익은 주당 3.45 달러로 40% 감소했습니다. 총 자산은 4,450억 달러로 연초 대비 1% 감소했으나, 지난해 대비 2% 증가했습니다. 은행의 순이자 마진은 1.07%로 증가했고, 부실 자산 비율은 총 자산의 0.04%로 미미했습니다. 소매 및 기업 예금은 연초 대비 8% 성장했습니다. 은행은 주당 0.63 달러의 정기 현금 배당금을 선언했으며, 이는 2024년 11월 13일에 지급될 예정입니다.
L'institution d'épargne de Hingham (NASDAQ: HIFS) a publié ses résultats financiers du troisième trimestre 2024. Le revenu net pour ce trimestre s'élevait à 5,846 millions de dollars, soit 2,66 dollars par action diluée, en hausse de 77 % par rapport à 1,50 dollar par action l'année dernière. Le rendement annualisé des capitaux propres moyens est passé à 5,52 %, avec un rendement sur les actifs moyens de 0,54 %. Le revenu net de base par action a augmenté de 9 % pour atteindre 1,44 dollar. Pour les neuf premiers mois de 2024, le revenu net était de 16,816 millions de dollars, une diminution de 16 % par rapport à la même période en 2023. Le revenu net de base par action a chuté de 40 % à 3,45 dollars. Les actifs totaux s'élevaient à 4,450 milliards de dollars, soit une baisse de 1 % par rapport au début de l'année mais une augmentation de 2 % par rapport à l'année précédente. La marge d'intérêt nette de la banque a augmenté à 1,07 %, et les actifs non performants étaient minimes, représentant 0,04 % des actifs totaux. Les dépôts de détail et d'entreprise ont augmenté de 8 % depuis le début de l'année. La banque a déclaré un dividende en espèces régulier de 0,63 dollar par action, payable le 13 novembre 2024.
Die Hingham Institution for Savings (NASDAQ: HIFS) hat ihre finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht. Der Nettogewinn für das Quartal betrug 5,846 Millionen Dollar, oder 2,66 Dollar je verwässerter Aktie, was einem Anstieg von 77% gegenüber 1,50 Dollar je Aktie im Vorjahr entspricht. Die annualisierte Rendite auf das durchschnittliche Eigenkapital stieg auf 5,52%, während die Rendite auf die durchschnittlichen Vermögenswerte bei 0,54% lag. Der Kernnettogewinn je Aktie stieg um 9% auf 1,44 Dollar. Für die ersten neun Monate 2024 betrug der Nettogewinn 16,816 Millionen Dollar, ein Rückgang von 16% im Vergleich zum gleichen Zeitraum 2023. Der Kernnettogewinn je Aktie fiel um 40% auf 3,45 Dollar. Die gesamten Vermögenswerte beliefen sich auf 4,450 Milliarden Dollar, was einem Rückgang von 1% seit Jahresbeginn entspricht, jedoch einem Anstieg von 2% im Vergleich zum Vorjahr. Die Nettozinsmarge der Bank stieg auf 1,07%, und die notleidenden Vermögenswerte waren mit 0,04% der Gesamtvermögenswerte minimal. Die Einzelhandels- und Geschäftseinlagen wuchsen seit Jahresbeginn um 8%. Die Bank erklärte eine reguläre Bardividende von 0,63 Dollar pro Aktie, die am 13. November 2024 zahlbar ist.
- Net income for Q3 2024 increased by 77% compared to Q3 2023.
- Core net income per share increased by 9% in Q3 2024.
- Annualized return on average equity rose to 5.52% in Q3 2024.
- Retail and business deposits grew 8% year-to-date.
- Net interest margin increased to 1.07% in Q3 2024.
- Net income for the first nine months of 2024 decreased by 16% compared to the same period in 2023.
- Core net income per share for the first nine months of 2024 decreased by 40% compared to the same period in 2023.
- Total assets declined by 1% year-to-date.
- Net loans declined by 2% year-to-date.
Insights
Hingham Institution for Savings reported mixed results for Q3 2024. While net income increased significantly year-over-year to
Asset quality remains strong, with non-performing assets at just
While results are improving, they remain below historical norms due to interest rate challenges. Management is focused on disciplined underwriting and cost control to navigate the environment. The stable balance sheet and full deposit insurance through the Massachusetts Depositors Insurance Fund provide competitive advantages in attracting deposits.
Hingham's results reflect the broader challenges facing the banking sector in the current rate environment. The bank's focus on commercial real estate lending, particularly multifamily, has helped maintain asset quality but constrained growth opportunities. The
The bank's ability to grow core deposits by
Hingham's efficiency ratio of
HINGHAM, Mass., Oct. 11, 2024 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham, Massachusetts announced results for the quarter ended September 30, 2024.
Earnings
Net income for the quarter ended September 30, 2024 was
Core net income for the quarter ended September 30, 2024, which represents net income excluding the after-tax gain on equity securities, both realized and unrealized, and the after-tax gain on the disposal of fixed assets, was
Net income for the nine months ended September 30, 2024 was
Core net income for the nine months ended September 30, 2024, which represents net income excluding the after-tax gain on securities, both realized and unrealized, and the after-tax gain on the disposal of fixed assets, was
See Page 10 for a reconciliation between Generally Accepted Accounting Principles (“GAAP”) net income and non-GAAP core net income. GAAP requires that gains and losses on equity securities, net of tax, realized and unrealized, be recognized in the Consolidated Statements of Income. In calculating core net income, the Bank did not make any adjustments other than those relating to after-tax gain on equity securities, realized and unrealized, and the after-tax gain on disposal of fixed assets.
Balance Sheet
Total assets were
Net loans were
Retail and business deposits were
Growth in non-interest bearing and money market balances in the first nine months of 2024 reflected the Bank’s focus on developing and deepening deposit relationships with new and existing commercial and non-profit customers. Investments in new relationship managers over the last nine months continued to contribute to deposit growth in the third quarter of 2024. The Bank continues to recruit actively for talented commercial bankers in Boston, Washington, and San Francisco, particularly as respected competitors have exited these markets or merged with larger regional banks.
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, continues to be appealing to customers in times of uncertainty.
Wholesale funds, which includes Federal Home Loan Bank borrowings, brokered deposits, and Internet listing service deposits were
Book value per share was
On September 25, 2024, the Bank declared a regular cash dividend of
The Bank has also generally declared special cash dividends in each of the last twenty-nine years, typically in the fourth quarter, but did not declare a special dividend in 2023. 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, particularly the incremental return on capital from new loan originations. 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, 2024 increased 11 basis points to
Key credit and operational metrics remained strong in the third quarter of 2024. At September 30, 2024, non-performing assets totaled
The Bank did not have any delinquent or non-performing commercial real estate loans as of September 30, 2024, December 31, 2023, or September 30, 2023. The Bank did not own any foreclosed property as of September 30, 2024, December 31, 2023 or September 30, 2023.
The efficiency ratio, as defined on page 5 below, fell to
Chairman Robert H. Gaughen Jr. stated, “Returns on equity and assets in the third quarter of 2024 were significantly lower than our long-term performance, reflecting the challenge from the increase in short-term interest rates over the last twenty-four months and a historically long and deep inversion of the yield curve. These conditions have posed a significant - albeit ultimately temporary - challenge to our business model. Our core business has been particularly challenged during this period and our investment operations have been critical to sustaining some growth in book value per share in this environment. As our assets continue to reprice higher and our liabilities, including both deposits and wholesale funding, reprice lower, conditions have become somewhat more favorable for our model.
While this market environment has been extraordinarily challenging, the Bank’s business model has been built over time to compound shareholder capital through economic cycles. 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. I believe that over the past twenty-four months we have retained this focus and it will serve us well as our business emerges from this period.”
The Bank’s quarterly financial results are summarized in this earnings release, but shareholders are encouraged to read the Bank’s quarterly report on Form 10-Q, which is generally available several weeks after the earnings release. The Bank expects to file Form 10-Q for the quarter ended September 30, 2024 with the Federal Deposit Insurance Corporation (FDIC) on or about November 6, 2024.
Incorporated in 1834, Hingham Institution for Savings is one of America’s oldest banks. The Bank maintains offices in Boston, Nantucket, Washington, D.C., and San Francisco.
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, | ||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||
| (Unaudited) | |||||||||||
| Key Performance Ratios | |||||||||||
| Return on average assets (1) | 0.31 | % | 0.54 | % | 0.64 | % | 0.52 | % | |||
| Return on average equity (1) | 3.25 | 5.52 | 6.70 | 5.35 | |||||||
| Core return on average assets (1) (5) | 0.27 | 0.29 | 0.41 | 0.23 | |||||||
| Core return on average equity (1) (5) | 2.85 | 2.99 | 4.24 | 2.41 | |||||||
| Interest rate spread (1) (2) | 0.39 | 0.34 | 0.65 | 0.24 | |||||||
| Net interest margin (1) (3) | 1.05 | 1.07 | 1.26 | 0.96 | |||||||
| Operating expenses to average assets (1) | 0.67 | 0.68 | 0.68 | 0.67 | |||||||
| Efficiency ratio (4) | 62.55 | 62.19 | 53.69 | 68.76 | |||||||
| Average equity to average assets | 9.59 | 9.82 | 9.58 | 9.65 | |||||||
| Average interest-earning assets to average interest-bearing liabilities | 120.53 | 120.59 | 121.28 | 120.14 | |||||||
| September 30, 2023 | December 31, 2023 | September 30, 2024 | |||||||||
| (Unaudited) | |||||||||||
| Asset Quality Ratios | |||||||||||
| Allowance for credit losses/total loans | 0.69 | % | 0.68 | % | 0.69 | % | |||||
| Allowance for credit losses/non-performing loans | 13,528.72 | 1,804.47 | 1,662.35 | ||||||||
| Non-performing loans/total loans | 0.01 | 0.04 | 0.04 | ||||||||
| Non-performing loans/total assets | 0.00 | 0.03 | 0.04 | ||||||||
| Non-performing assets/total assets | 0.00 | 0.03 | 0.04 | ||||||||
| Share Related | |||||||||||
| Book value per share | $ | 186.74 | $ | 188.50 | $ | 193.42 | |||||
| Market value per share | $ | 186.75 | $ | 194.40 | $ | 243.31 | |||||
| Shares outstanding at end of period | 2,152,400 | 2,162,400 | 2,180,250 | ||||||||
| (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 is a non-GAAP measure that represents total operating expenses, divided by the sum of net interest income and total other income, excluding gain on equity securities, net and 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 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, 2023 | December 31, 2023 | September 30, 2024 | ||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 6,122 | $ | 5,654 | $ | 7,147 | |||||
| Federal Reserve and other short-term investments | 347,419 | 356,823 | 360,953 | ||||||||
| Cash and cash equivalents | 353,541 | 362,477 | 368,100 | ||||||||
| CRA investment | 7,973 | 8,853 | 9,040 | ||||||||
| Other marketable equity securities | 65,213 | 70,949 | 88,604 | ||||||||
| Securities, at fair value | 73,186 | 79,802 | 97,644 | ||||||||
| Securities held to maturity, at amortized cost | 3,500 | 3,500 | 6,493 | ||||||||
| Federal Home Loan Bank stock, at cost | 62,457 | 69,574 | 62,812 | ||||||||
| Loans, net of allowance for credit losses of | 3,808,599 | 3,914,244 | 3,863,105 | ||||||||
| Bank-owned life insurance | 13,562 | 13,642 | 13,899 | ||||||||
| Premises and equipment, net | 17,027 | 17,008 | 16,565 | ||||||||
| Accrued interest receivable | 7,722 | 8,554 | 8,395 | ||||||||
| Deferred income tax asset, net | 1,949 | 974 | — | ||||||||
| Other assets | 15,179 | 14,172 | 12,743 | ||||||||
| Total assets | $ | 4,356,722 | $ | 4,483,947 | $ | 4,449,756 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Interest-bearing deposits | $ | 2,056,582 | $ | 2,010,918 | $ | 2,103,123 | |||||
| Non-interest-bearing deposits | 359,070 | 339,059 | 358,009 | ||||||||
| Total deposits | 2,415,652 | 2,349,977 | 2,461,132 | ||||||||
| Federal Home Loan Bank advances | 1,509,000 | 1,692,675 | 1,530,500 | ||||||||
| Mortgagors’ escrow accounts | 13,773 | 13,942 | 14,589 | ||||||||
| Accrued interest payable | 8,311 | 12,261 | 11,025 | ||||||||
| Deferred income tax liability, net | — | — | 1,739 | ||||||||
| Other liabilities | 8,039 | 7,472 | 9,069 | ||||||||
| Total liabilities | 3,954,775 | 4,076,327 | 4,028,054 | ||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, | — | — | — | ||||||||
| Common stock, | 2,152 | 2,162 | 2,180 | ||||||||
| Additional paid-in capital | 13,439 | 14,150 | 15,519 | ||||||||
| Undivided profits | 386,356 | 391,308 | 404,003 | ||||||||
| Total stockholders’ equity | 401,947 | 407,620 | 421,702 | ||||||||
| Total liabilities and stockholders’ equity | $ | 4,356,722 | $ | 4,483,947 | $ | 4,449,756 | |||||
| HINGHAM INSTITUTION FOR SAVINGS Consolidated Statements of Income | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||
| (In thousands, except per share amounts) | 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Interest and dividend income: | |||||||||||||||||||
| Loans | $ | 40,245 | $ | 45,035 | $ | 114,467 | $ | 132,820 | |||||||||||
| Debt securities | 32 | 93 | 98 | 225 | |||||||||||||||
| Equity securities | 1,163 | 1,532 | 3,110 | 4,533 | |||||||||||||||
| Federal Reserve and other short-term investments | 3,598 | 2,802 | 10,078 | 8,374 | |||||||||||||||
| Total interest and dividend income | 45,038 | 49,462 | 127,753 | 145,952 | |||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 20,010 | 21,371 | 50,618 | 64,658 | |||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank advances | 14,042 | 16,610 | 38,208 | 50,361 | |||||||||||||||
| Total interest expense | 34,052 | 37,981 | 88,826 | 115,019 | |||||||||||||||
| Net interest income | 10,986 | 11,481 | 38,927 | 30,933 | |||||||||||||||
| Provision for credit losses | 241 | 40 | 847 | 328 | |||||||||||||||
| Net interest income, after provision for credit losses | 10,745 | 11,441 | 38,080 | 30,605 | |||||||||||||||
| Other income: | |||||||||||||||||||
| Customer service fees on deposits | 131 | 136 | 410 | 411 | |||||||||||||||
| Increase in cash surrender value of bank-owned life insurance | 84 | 94 | 250 | 257 | |||||||||||||||
| Gain on equity securities, net | 486 | 3,442 | 9,424 | 11,876 | |||||||||||||||
| Gain on disposal of fixed assets | 44 | — | 44 | — | |||||||||||||||
| Miscellaneous | 59 | 52 | 176 | 156 | |||||||||||||||
| Total other income | 804 | 3,724 | 10,304 | 12,700 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Salaries and employee benefits | 4,069 | 4,237 | 12,560 | 12,768 | |||||||||||||||
| Occupancy and equipment | 435 | 408 | 1,206 | 1,233 | |||||||||||||||
| Data processing | 743 | 793 | 2,142 | 2,286 | |||||||||||||||
| Deposit insurance | 666 | 743 | 1,906 | 2,372 | |||||||||||||||
| Foreclosure and related | 29 | 15 | (19 | ) | 61 | ||||||||||||||
| Marketing | 152 | 141 | 641 | 417 | |||||||||||||||
| Other general and administrative | 949 | 978 | 2,913 | 2,699 | |||||||||||||||
| Total operating expenses | 7,043 | 7,315 | 21,349 | 21,836 | |||||||||||||||
| Income before income taxes | 4,506 | 7,850 | 27,035 | 21,469 | |||||||||||||||
| Income tax provision | 1,209 | 2,004 | 6,979 | 4,653 | |||||||||||||||
| Net income | $ | 3,297 | $ | 5,846 | $ | 20,056 | $ | 16,816 | |||||||||||
| Cash dividends declared per share | $ | 0.63 | $ | 0.63 | $ | 1.89 | $ | 1.89 | |||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||
| Basic | 2,151 | 2,180 | 2,149 | 2,177 | |||||||||||||||
| Diluted | 2,192 | 2,197 | 2,195 | 2,192 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||
| Basic | $ | 1.53 | $ | 2.68 | $ | 9.33 | $ | 7.73 | |||||||||||
| Diluted | $ | 1.50 | $ | 2.66 | $ | 9.14 | $ | 7.67 | |||||||||||
| HINGHAM INSTITUTION FOR SAVINGS Net Interest Income Analysis | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| September 30, 2023 | June 30, 2024 | September 30, 2024 | |||||||||||||||||||||||||||
| 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) | $ | 3,802,045 | $ | 40,245 | 4.23 | % | $ | 3,980,111 | $ | 44,665 | 4.49 | % | $ | 3,915,967 | $ | 45,035 | 4.56 | % | |||||||||||
| Securities (3) (4) | 107,432 | 1,195 | 4.45 | 119,477 | 1,638 | 5.48 | 122,715 | 1,625 | 5.25 | ||||||||||||||||||||
| Short-term investments (5) | 264,160 | 3,598 | 5.45 | 202,379 | 2,745 | 5.43 | 207,446 | 2,802 | 5.36 | ||||||||||||||||||||
| Total interest-earning assets | 4,173,637 | 45,038 | 4.32 | 4,301,967 | 49,048 | 4.56 | 4,246,128 | 49,462 | 4.62 | ||||||||||||||||||||
| Other assets | 61,529 | 66,218 | 69,148 | ||||||||||||||||||||||||||
| Total assets | $ | 4,235,166 | $ | 4,368,185 | $ | 4,315,276 | |||||||||||||||||||||||
| Liabilities and stockholders’ equity: | ` | ||||||||||||||||||||||||||||
| Interest-bearing deposits (6) | $ | 2,200,952 | 20,010 | 3.64 | % | $ | 2,149,753 | 22,141 | 4.12 | % | $ | 2,071,780 | 21,371 | 4.09 | % | ||||||||||||||
| Borrowed funds | 1,261,652 | 14,042 | 4.45 | 1,437,335 | 16,539 | 4.60 | 1,449,491 | 16,610 | 4.55 | ||||||||||||||||||||
| Total interest-bearing liabilities | 3,462,604 | 34,052 | 3.93 | 3,587,088 | 38,680 | 4.31 | 3,521,271 | 37,981 | 4.28 | ||||||||||||||||||||
| Non-interest-bearing deposits | 353,543 | 346,663 | 355,768 | ||||||||||||||||||||||||||
| Other liabilities | 12,958 | 15,503 | 14,577 | ||||||||||||||||||||||||||
| Total liabilities | 3,829,105 | 3,949,254 | 3,891,616 | ||||||||||||||||||||||||||
| Stockholders’ equity | 406,061 | 418,931 | 423,660 | ||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,235,166 | $ | 4,368,185 | $ | 4,315,276 | |||||||||||||||||||||||
| Net interest income | $ | 10,986 | $ | 10,368 | $ | 11,481 | |||||||||||||||||||||||
| Weighted average interest rate spread | 0.39 | % | 0.25 | % | 0.34 | % | |||||||||||||||||||||||
| Net interest margin (7) | 1.05 | % | 0.96 | % | 1.07 | % | |||||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities (8) | 120.53 | % | 119.93 | % | 120.59 | % | |||||||||||||||||||||||
| (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, | |||||||||||||||||||
| 2023 | 2024 | ||||||||||||||||||
| Average Balance (9) | Interest | Yield/ Rate (10) | Average Balance (9) | Interest | Yield/ Rate (10) | ||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Loans (1) (2) | $ | 3,737,198 | $ | 114,467 | 4.08 | % | $ | 3,950,610 | $ | 132,820 | 4.48 | % | |||||||
| Securities (3) (4) | 103,454 | 3,208 | 4.13 | 119,477 | 4,758 | 5.30 | |||||||||||||
| Short-term investments (5) | 267,922 | 10,078 | 5.02 | 206,029 | 8,374 | 5.41 | |||||||||||||
| Total interest-earning assets | 4,108,574 | 127,753 | 4.15 | 4,276,116 | 145,952 | 4.55 | |||||||||||||
| Other assets | 57,360 | 66,477 | |||||||||||||||||
| Total assets | $ | 4,165,934 | $ | 4,342,593 | |||||||||||||||
| Interest-bearing deposits (6) | $ | 2,215,719 | 50,618 | 3.05 | $ | 2,106,667 | 64,658 | 4.09 | |||||||||||
| Borrowed funds | 1,172,019 | 38,208 | 4.35 | 1,452,606 | 50,361 | 4.62 | |||||||||||||
| Total interest-bearing liabilities | 3,387,738 | 88,826 | 3.50 | 3,559,273 | 115,019 | 4.30 | |||||||||||||
| Non-interest-bearing deposits | 367,541 | 349,545 | |||||||||||||||||
| Other liabilities | 11,362 | 14,780 | |||||||||||||||||
| Total liabilities | 3,766,641 | 3,923,598 | |||||||||||||||||
| Stockholders’ equity | 399,293 | 418,995 | |||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,165,934 | $ | 4,342,593 | |||||||||||||||
| Net interest income | $ | 38,927 | $ | 30,933 | |||||||||||||||
| Weighted average interest rate spread | 0.65 | % | 0.24 | % | |||||||||||||||
| Net interest margin (7) | 1.26 | % | 0.96 | % | |||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities (8) | 121.28 | % | 120.14 | % | |||||||||||||||
| (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 Bank believes the presentation of the following non-GAAP financial measures provide useful supplemental information that is essential to an investor’s proper understanding of results of operations and financial condition of the Bank. Management uses these measures in its analysis of the Bank’s performance. These non-GAAP measures should not be viewed as substitutes for the financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks.
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 on equity securities and the after-tax gain on disposal of fixed assets.
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands, unaudited) | 2023 | 2024 | 2023 | 2024 | ||||||||||||
| Non-GAAP reconciliation: | ||||||||||||||||
| Net income | $ | 3,297 | $ | 5,846 | $ | 20,056 | $ | 16,816 | ||||||||
| Gain on equity securities, net | (486 | ) | (3,442 | ) | (9,424 | ) | (11,876 | ) | ||||||||
| Income tax expense expense (1) | 116 | 759 | 2,086 | 2,618 | ||||||||||||
| Gain on disposal of fixed assets | (44 | ) | — | (44 | ) | — | ||||||||||
| Income tax expense | 12 | — | 12 | — | ||||||||||||
| Core net income | $ | 2,895 | $ | 3,163 | $ | 12,686 | $ | 7,558 | ||||||||
(1) The equity securities are held in a tax-advantaged subsidiary corporation. The income tax effect of the gain on equity securities, net, was calculated using the effective tax rate applicable to the subsidiary.
The table below presents the calculation of the efficiency ratio, a non-U.S. GAAP performance measure that management uses to assess operational efficiency which represents total operating expenses, divided by the sum of net interest income and total other income, excluding gain on equity securities, net and gain on disposal of fixed assets.
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | |||||||||||||||||||||
| (In thousands, unaudited) | 2023 | 2024 | 2024 | 2023 | 2024 | |||||||||||||||||||
| Non-U.S. GAAP efficiency ratio calculation: | ||||||||||||||||||||||||
| Operating expenses | $ | 7,043 | $ | 7,294 | $ | 7,315 | $ | 21,349 | $ | 21,836 | ||||||||||||||
| Net interest income | $ | 10,986 | $ | 10,368 | $ | 11,481 | $ | 38,927 | $ | 30,933 | ||||||||||||||
| Other income | 804 | 2,733 | 3,724 | 10,304 | 12,700 | |||||||||||||||||||
| Gain on equity securities, net | (486 | ) | (2,464 | ) | (3,442 | ) | (9,424 | ) | (11,876 | ) | ||||||||||||||
| Gain on disposal of fixed assets | (44 | ) | — | — | (44 | ) | — | |||||||||||||||||
| Total revenue | $ | 11,260 | $ | 10,637 | $ | 11,763 | $ | 39,763 | $ | 31,757 | ||||||||||||||
| Efficiency ratio | 62.55 | % | 68.57 | % | 62.19 | % | 53.69 | % | 68.76 | % | ||||||||||||||
CONTACT: Patrick R. Gaughen, President and Chief Operating Officer (781) 783-1761
FAQ
What were Hingham Institution for Savings' Q3 2024 earnings per share?
How did HIFS' net income change in Q3 2024 compared to Q3 2023?
What is the annualized return on average equity for HIFS in Q3 2024?
How did HIFS' core net income per share change in Q3 2024?
What was the net interest margin for HIFS in Q3 2024?
How did HIFS' net income for the first nine months of 2024 compare to the same period in 2023?
What was HIFS' total asset value as of September 30, 2024?
