Hingham Reports Second Quarter 2026 Results
Rhea-AI Summary
Hingham Institution for Savings (NASDAQ:HIFS) reported strong results for the quarter ended June 30, 2026, with net income of $25.4 million and diluted EPS of $11.49, up 168.5% year-over-year. Quarterly return on average equity rose to 20.38% and return on average assets to 2.25%. Core net income was $10.7 million (diluted EPS $4.82), up 42.2%.
Total assets reached $4.56 billion, while non-interest-bearing deposits grew 15.2% year-over-year to $504.2 million. Net interest margin expanded to 2.14% from 1.66% a year earlier. Book value per share increased 13.0% year-over-year to $230.83. The bank declared a regular cash dividend of $0.63 per share, its 130th consecutive quarterly dividend, payable August 12, 2026.
Positive
- Q2 2026 diluted EPS $11.49, up 168.5% year-over-year
- Core diluted EPS Q2 2026 $4.82, up 42.2% year-over-year
- Return on average equity Q2 2026 20.38% vs. 8.43% last year
- Net interest margin Q2 2026 2.14% vs. 1.66% last year
- Non-interest-bearing deposits $504.2 million, up 15.2% year-over-year
- Book value per share $230.83, up 13.0% year-over-year
Negative
- Net loans $3.904 billion, down 0.7% year-over-year
- Non-performing assets ratio 0.78% of total assets vs. 0.70% last year
- Specific reserve $2.5 million on a $30.6 million commercial real estate loan
- Efficiency ratio 37.46% vs. 34.87% prior quarter
- Operating expenses/average assets 0.79% vs. 0.69% prior quarter and 0.68% last year
- Operational check fraud loss $201,000 recorded in Q2 2026
News Explained
The approved buyback remains unused, while reported shares outstanding were 2,198,250 at June 30 versus 2,182,250 at year-end.
Hingham reported second-quarter results for the quarter ended
The release reports
At June 30, the bank reported
The next named checkpoint is the expected
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 17 | First-quarter earnings | Positive | -6.0% | Core earnings increased despite lower GAAP net income and higher non-performing loans. |
| Oct 10 | Third-quarter earnings | Positive | -4.6% | Net income rose sharply, while non-performing loans increased due to commercial real estate exposure. |
| Jul 11 | Second-quarter earnings | Positive | +2.5% | Net income and core earnings increased alongside higher margin and deposit growth. |
| Apr 11 | First-quarter earnings | Positive | +4.6% | Core earnings, deposits, margin, and operating efficiency improved year over year. |
| Oct 11 | Third-quarter earnings | Positive | +2.6% | Quarterly earnings and margin increased, despite weaker year-to-date core earnings. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings reactions varied, with strong reported results followed by both positive and negative 24-hour price reactions.
Key Terms
gaap financial
non-gaap financial
net interest margin financial
non-performing assets financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
HINGHAM, Mass., July 17, 2026 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham, Massachusetts announced results for the quarter ended June 30, 2026.
Earnings
Net income for the quarter ended June 30, 2026 was
Core net income for the quarter ended June 30, 2026, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was
Net income for the six months ended June 30, 2026 was
Core net income for the six months ended June 30, 2026, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was
See Page 11 for a reconciliation between United States Generally Accepted Accounting Principles (“GAAP”) net income and non-GAAP core net income. Under changes made to GAAP effective in 2018, gains and losses on equity securities, net of tax, realized and unrealized, are recognized in the Consolidated Statements of Income. In calculating core net income, the Bank did not make any adjustments other than those relating to the after-tax net gain on equity securities, both realized and unrealized.
Balance Sheet
Total assets increased to
Net loans increased to
Retail and commercial deposits were
Non-interest-bearing deposits, included in retail and commercial deposits, were
Growth in non-interest bearing deposits in the second quarter of 2026 and over the last two years reflects the Bank’s focus on developing and deepening deposit relationships with new and existing commercial, institutional, and non-profit customers. The Bank continues to invest in its Specialized Deposit Group, actively recruiting for talented relationship managers in Boston, Washington, and San Francisco.
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 appeal to customers.
Wholesale funds, which includes Federal Home Loan Bank (“FHLB”) borrowings, brokered deposits, and Internet listing service time deposits, were
In the first six months of 2026, the Bank continued to manage its wholesale funding mix to lower its cost of funds while continuing to replace maturing longer term liabilities. Wholesale deposits, which include brokered and Internet listing service time deposits, were
Book value per share was
On June 24, 2026, the Bank declared a regular cash dividend of 0.63 per share. This dividend will be paid on August 12, 2026 to stockholders of record as of August 3, 2026. This will be the Bank’s 130th consecutive quarterly dividend. The Bank has also declared special cash dividends in twenty-nine of the last thirty-one years, typically in the fourth quarter.
The Bank regularly evaluates capital allocation options, including organic growth, special dividends, and share repurchase in light of the prospective return of such options. The Bank received regulatory approval in December 2025 for a share repurchase program of
Operational Performance Metrics
The net interest margin for the quarter ended June 30, 2026 increased 10 basis points to
The net interest margin for the quarter ended June 30, 2026 increased 48 basis points to
Key credit and operational metrics remained acceptable in the second quarter of 2026. At June 30, 2026, non-performing assets, which included three loans secured by real estate and eight properties held in foreclosed assets, totaled
Non-performing loans and non-performing asset activity included the following during the second quarter of 2026:
- Non-performing loans at both March 31, 2026 and June 30, 2026 included a commercial real estate loan with an outstanding balance of
$30.6 million , which is secured by an entitled development site for a significant multifamily development in Washington, D.C. and has an associated conditional guarantee from a large national homebuilder and an affordable housing developer. The Bank continues to work actively to identify a resolution that protects the Bank’s interests. The Bank’s allowance for credit losses as of June 30, 2026 includes a$2.5 million specific reserve allocated to this credit. - Non-performing assets at June 30, 2026 included a number of properties associated with a borrower specializing in affordable housing in Washington, D.C. The Bank foreclosed on one loan associated with this relationship in March 2026, and resolved the remaining two loans acquiring title to additional properties in the second quarter of 2026, in accordance with a settlement agreement executed with the borrower following litigation. In total, the Bank obtained two multifamily properties and seven single family properties. The Bank sold one of the single family properties during the second quarter, placed two additional properties under agreement shortly after quarter end, and is actively marketing the remainder of the portfolio for sale. Given the value of the collateral obtained from the borrower, based upon contemporaneous appraisals, the Bank did not recognize any loan loss associated with these transactions. Rental income generated by these properties is reported as other income (included in miscellaneous income), while their operating expenses are classified as foreclosure and related expenses on the Consolidated Statements of Net Income.
- In the second quarter of 2026, the Bank sold its interest in the collateral securing a construction loan with an outstanding balance of
$3.7 million made to a different affordable multifamily developer in Washington, D.C. The Bank foreclosed on this loan in March 2026 but did not take title, anticipating the assignment of the bid in the second quarter. The Bank did not incur any loss associated with this transaction, as the purchase price and cash collateral held at the Bank exceeded the loan balance. - In the second quarter of 2026, the Bank resolved a long-standing non-performing home equity line of credit by executing a settlement agreement with the borrower’s descendants. This settlement agreement resulted in a
$201,000 operational check fraud loss recorded in the second quarter of 2026. - Non-performing loans at June 30, 2026 also included a small home equity line of credit which was included in non-performing loans as of March 31, 2026, and a small residential loan which became non-performing during the second quarter.
Operating expenses in the second quarter of 2026 included a
The efficiency ratio, as defined on page 11 below, increased to
Chairman Robert H. Gaughen Jr. stated, “Our core returns on average equity and average assets continue to improve materially over time, driven by sustained expansion in the net interest margin through asset repricing and falling funding costs. Growth in non-interest bearing deposits has been an important driver of improving funding costs. Both core and GAAP returns remain somewhat below our long-term performance and our expectations for the business, although core returns are approaching acceptable performance levels. Our operational leverage remains critical to generating satisfactory returns and we remain focused on rigorous cost control and continuous operational improvement.
In any given period, our GAAP returns on average equity and average assets may be positively or negatively affected by the performance of our investment portfolio, composed of long-term holdings in financial services and technology companies. Over time, they have contributed meaningfully to growth in book value and we continue to identify opportunities to commit additional capital in this portfolio.
The Bank’s business model has been built to compound shareholder capital over the long-term. We remain focused on careful capital allocation, defensive underwriting and rigorous 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 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 June 30, 2026 with the Federal Deposit Insurance Corporation (FDIC) on or about August 5, 2026.
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 June 30, | Six Months Ended June 30, | ||||||||||
| 2025 | 2026 | 2025 | 2026 | ||||||||
| (Unaudited) | |||||||||||
| Key Performance Ratios | |||||||||||
| Return on average assets (1) | 0.85 | % | 2.25 | % | 0.75 | % | 1.25 | % | |||
| Return on average equity (1) | 8.43 | 20.38 | 7.45 | 11.45 | |||||||
| Core return on average assets (1) (5) | 0.67 | 0.94 | 0.61 | 0.94 | |||||||
| Core return on average equity (1) (5) | 6.67 | 8.55 | 6.12 | 8.60 | |||||||
| Interest rate spread (1) (2) | 0.95 | 1.43 | 0.87 | 1.40 | |||||||
| Net interest margin (1) (3) | 1.66 | 2.14 | 1.58 | 2.09 | |||||||
| Operating expenses to average assets (1) | 0.68 | 0.79 | 0.68 | 0.74 | |||||||
| Efficiency ratio (4) | 41.17 | 37.46 | 43.36 | 36.21 | |||||||
| Average equity to average assets | 10.05 | 11.02 | 10.02 | 10.92 | |||||||
| Average interest-earning assets to average interest-bearing liabilities | 122.94 | 126.50 | 122.60 | 125.75 | |||||||
| June 30, 2025 | December 31, 2025 | June 30, 2026 | |||||||||||
| (Unaudited) | |||||||||||||
| Asset Quality Ratios | |||||||||||||
| Allowance for credit losses/total loans | 0.70 | % | 0.73 | % | 0.75 | % | |||||||
| Allowance for credit losses/non-performing loans | 86.97 | 91.46 | 96.15 | ||||||||||
| Non-performing loans/total loans | 0.81 | 0.80 | 0.78 | ||||||||||
| Non-performing loans/total assets | 0.70 | 0.69 | 0.67 | ||||||||||
| Non-performing assets/total assets | 0.70 | 0.69 | 0.78 | ||||||||||
| Share Related | |||||||||||||
| Book value per share | $ | 204.36 | $ | 219.82 | $ | 230.83 | |||||||
| Market value per share | $ | 248.35 | $ | 283.96 | $ | 307.15 | |||||||
| Shares outstanding at end of period | 2,181,250 | 2,182,250 | 2,198,250 | ||||||||||
| (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 the net gain on equity securities, both realized and unrealized. |
| (5 | ) | Non-GAAP measurements that represent return on average assets and return on average equity, excluding the after-tax net gain on equity securities, both realized and unrealized. |
| HINGHAM INSTITUTION FOR SAVINGS Consolidated Balance Sheets | |||||||||
| (In thousands, except share amounts) | June 30, 2025 | December 31, 2025 | June 30, 2026 | ||||||
| (Unaudited) | |||||||||
| ASSETS | |||||||||
| Cash and due from banks | $ | 8,470 | $ | 6,683 | $ | 5,487 | |||
| Federal Reserve and other short-term investments | 352,144 | 362,925 | 349,677 | ||||||
| Cash and cash equivalents | 360,614 | 369,608 | 355,164 | ||||||
| CRA investment | 8,928 | 9,050 | 8,956 | ||||||
| Other marketable equity securities | 113,761 | 141,294 | 155,505 | ||||||
| Securities, at fair value | 122,689 | 150,344 | 164,461 | ||||||
| Securities held to maturity, at amortized cost | 6,494 | 7,499 | 11,499 | ||||||
| Federal Home Loan Bank stock, at cost | 64,659 | 61,987 | 59,622 | ||||||
| Loans, net of allowance for credit losses of | 3,931,663 | 3,899,008 | 3,903,907 | ||||||
| Foreclosed assets | — | — | 4,669 | ||||||
| Bank-owned life insurance | 14,143 | 14,318 | 14,488 | ||||||
| Premises and equipment, net | 16,180 | 15,911 | 15,718 | ||||||
| Accrued interest receivable | 8,962 | 9,213 | 9,274 | ||||||
| Other assets | 13,753 | 14,766 | 17,708 | ||||||
| Total assets | $ | 4,539,157 | $ | 4,542,654 | $ | 4,556,510 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY
| Interest-bearing deposits | $ | 2,040,271 | $ | 2,080,661 | $ | 2,089,295 | |||
| Non-interest-bearing deposits | 437,608 | 467,656 | 504,230 | ||||||
| Total deposits | 2,477,879 | 2,548,317 | 2,593,525 | ||||||
| Federal Home Loan Bank advances | 1,572,000 | 1,463,815 | 1,405,340 | ||||||
| Mortgagors’ escrow accounts | 18,478 | 18,427 | 20,238 | ||||||
| Accrued interest payable | 12,959 | 11,831 | 11,154 | ||||||
| Deferred income tax liability, net | 4,629 | 9,495 | 9,579 | ||||||
| Other liabilities | 7,460 | 11,061 | 9,252 | ||||||
| Total liabilities | 4,093,405 | 4,062,946 | 4,049,088 | ||||||
| Stockholders’ equity: | |||||||||
| Preferred stock, | — | — | — | ||||||
| Common stock, | 2,181 | 2,182 | 2,198 | ||||||
| Additional paid-in capital | 15,777 | 16,004 | 18,116 | ||||||
| Undivided profits | 427,794 | 461,530 | 487,055 | ||||||
| Accumulated other comprehensive income (loss) | — | (8 | ) | 53 | |||||
| Total stockholders’ equity | 445,752 | 479,708 | 507,422 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,539,157 | $ | 4,542,654 | $ | 4,556,510 | |||
| HINGHAM INSTITUTION FOR SAVINGS Consolidated Statements of Income | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||
| (In thousands, except per share amounts) | 2025 | 2026 | 2025 | 2026 | |||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Interest and dividend income: | |||||||||||||||||||
| Loans | $ | 46,752 | $ | 48,093 | $ | 91,973 | $ | 95,099 | |||||||||||
| Debt securities | 97 | 131 | 192 | 244 | |||||||||||||||
| Equity securities | 1,365 | 1,402 | 2,816 | 2,965 | |||||||||||||||
| Federal Reserve and other short-term investments | 3,072 | 3,256 | 6,127 | 6,381 | |||||||||||||||
| Total interest and dividend income | 51,286 | 52,882 | 101,108 | 104,689 | |||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 17,841 | 15,582 | 36,462 | 31,159 | |||||||||||||||
| Federal Home Loan Bank and Federal Reserve Bank | 15,406 | 13,694 | 30,571 | 27,792 | |||||||||||||||
| Total interest expense | 33,247 | 29,276 | 67,033 | 58,951 | |||||||||||||||
| Net interest income | 18,039 | 23,606 | 34,075 | 45,738 | |||||||||||||||
| Provision for credit losses | 450 | 500 | 750 | 1,000 | |||||||||||||||
| Net interest income, after provision for credit losses | 17,589 | 23,106 | 33,325 | 44,738 | |||||||||||||||
| Other income: | |||||||||||||||||||
| Customer service fees on deposits | 139 | 170 | 274 | 336 | |||||||||||||||
| Increase in cash surrender value of bank-owned life insurance | 79 | 88 | 163 | 170 | |||||||||||||||
| Gain on equity securities, net | 2,516 | 18,953 | 3,797 | 9,033 | |||||||||||||||
| Miscellaneous | 73 | 99 | 122 | 154 | |||||||||||||||
| Total other income | 2,807 | 19,310 | 4,356 | 9,693 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Salaries and employee benefits | 4,392 | 4,558 | 8,859 | 9,237 | |||||||||||||||
| Occupancy and equipment | 417 | 396 | 856 | 873 | |||||||||||||||
| Data processing | 758 | 850 | 1,482 | 1,667 | |||||||||||||||
| Deposit insurance | 784 | 541 | 1,532 | 1,178 | |||||||||||||||
| Foreclosure and related | 14 | 206 | 24 | 281 | |||||||||||||||
| Marketing | 222 | 341 | 358 | 589 | |||||||||||||||
| Other general and administrative | 959 | 2,084 | 1,905 | 2,975 | |||||||||||||||
| Total operating expenses | 7,546 | 8,976 | 15,016 | 16,800 | |||||||||||||||
| Income before income taxes | 12,850 | 33,440 | 22,665 | 37,631 | |||||||||||||||
| Income tax provision | 3,436 | 7,997 | 6,127 | 9,337 | |||||||||||||||
| Net income | $ | 9,414 | $ | 25,443 | $ | 16,538 | $ | 28,294 | |||||||||||
| Cash dividends declared per common share | $ | 0.63 | $ | 0.63 | $ | 1.26 | $ | 1.26 | |||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||
| Basic | 2,181 | 2,196 | 2,181 | 2,191 | |||||||||||||||
| Diluted | 2,200 | 2,213 | 2,200 | 2,211 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||
| Basic | $ | 4.32 | $ | 11.59 | $ | 7.58 | $ | 12.92 | |||||||||||
| Diluted | $ | 4.28 | $ | 11.49 | $ | 7.52 | $ | 12.80 | |||||||||||
| HINGHAM INSTITUTION FOR SAVINGS Net Interest Income Analysis | ||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||
| June 30, 2025 | March 31, 2026 | June 30, 2026 | ||||||||||||||||||||||||||||
| 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) | $ | 3,952,477 | $ | 46,752 | 4.74 | % | $ | 3,923,289 | $ | 47,006 | 4.86 | % | $ | 3,925,640 | $ | 48,093 | 4.91 | % | ||||||||||||
| Securities (3) (4) | 135,541 | 1,462 | 4.33 | 142,557 | 1,676 | 4.77 | 148,050 | 1,533 | 4.15 | |||||||||||||||||||||
| Short-term investments (5) | 277,146 | 3,072 | 4.45 | 342,426 | 3,125 | 3.70 | 353,225 | 3,256 | 3.70 | |||||||||||||||||||||
| Total interest-earning assets | 4,365,164 | 51,286 | 4.71 | 4,408,272 | 51,807 | 4.77 | 4,426,915 | 52,882 | 4.79 | |||||||||||||||||||||
| Other assets | 78,230 | 107,202 | 105,849 | |||||||||||||||||||||||||||
| Total assets | $ | 4,443,394 | $ | 4,515,474 | $ | 4,532,764 | ||||||||||||||||||||||||
| Liabilities and stockholders’ equity: | ` | |||||||||||||||||||||||||||||
| Interest-bearing deposits (6) | $ | 2,102,662 | 17,841 | 3.40 | % | $ | 2,090,883 | 15,577 | 3.02 | % | $ | 2,101,178 | 15,582 | 2.97 | % | |||||||||||||||
| Borrowed funds | 1,448,078 | 15,406 | 4.27 | 1,436,018 | 14,098 | 3.98 | 1,398,343 | 13,694 | 3.93 | |||||||||||||||||||||
| Total interest-bearing liabilities | 3,550,740 | 33,247 | 3.76 | 3,526,901 | 29,675 | 3.41 | 3,499,521 | 29,276 | 3.36 | |||||||||||||||||||||
| Non-interest-bearing deposits | 429,537 | 472,919 | 507,665 | |||||||||||||||||||||||||||
| Other liabilities | 16,378 | 27,020 | 26,204 | |||||||||||||||||||||||||||
| Total liabilities | 3,996,655 | 4,026,840 | 4,033,390 | |||||||||||||||||||||||||||
| Stockholders’ equity | 446,739 | 488,634 | 499,374 | |||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,443,394 | $ | 4,515,474 | $ | 4,532,764 | ||||||||||||||||||||||||
| Net interest income | $ | 18,039 | $ | 22,132 | $ | 23,606 | ||||||||||||||||||||||||
| Weighted average interest rate spread | 0.95 | % | 1.35 | % | 1.43 | % | ||||||||||||||||||||||||
| Net interest margin (7) | 1.66 | % | 2.04 | % | 2.14 | % | ||||||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities (8) | 122.94 | % | 124.99 | % | 126.50 | % | ||||||||||||||||||||||||
| (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 based on the actual number of days in the period. |
| HINGHAM INSTITUTION FOR SAVINGS Net Interest Income Analysis | |||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||
| 2025 | 2026 | ||||||||||||||||
| Average Balance (9) | Interest | Yield/ Rate (10) | Average Balance (9) | Interest | Yield/ Rate (10) | ||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Loans (1) (2) | $ | 3,941,215 | $ | 91,973 | 4.71 | % | $ | 3,924,471 | $ | 95,099 | 4.89 | % | |||||
| Securities (3) (4) | 133,121 | 3,008 | 4.56 | 145,319 | 3,209 | 4.45 | |||||||||||
| Short-term investments (5) | 277,930 | 6,127 | 4.45 | 347,855 | 6,381 | 3.70 | |||||||||||
| Total interest-earning assets | 4,352,266 | 101,108 | 4.68 | 4,417,645 | 104,689 | 4.78 | |||||||||||
| Other assets | 78,717 | 106,521 | |||||||||||||||
| Total assets | $ | 4,430,983 | $ | 4,524,166 | |||||||||||||
| Interest-bearing deposits (6) | $ | 2,121,871 | 36,462 | 3.47 | % | $ | 2,096,060 | 31,159 | 3.00 | % | |||||||
| Borrowed funds | 1,428,072 | 30,571 | 4.32 | 1,417,076 | 27,792 | 3.95 | |||||||||||
| Total interest-bearing liabilities | 3,549,943 | 67,033 | 3.81 | 3,513,136 | 58,951 | 3.38 | |||||||||||
| Non-interest-bearing deposits | 421,750 | 490,388 | |||||||||||||||
| Other liabilities | 15,428 | 26,608 | |||||||||||||||
| Total liabilities | 3,987,121 | 4,030,132 | |||||||||||||||
| Stockholders’ equity | 443,862 | 494,034 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,430,983 | $ | 4,524,166 | |||||||||||||
| Net interest income | $ | 34,075 | $ | 45,738 | |||||||||||||
| Weighted average interest rate spread | 0.87 | % | 1.40 | % | |||||||||||||
| Net interest margin (7) | 1.58 | % | 2.09 | % | |||||||||||||
| Average interest-earning assets to average interest-bearing liabilities (8) | 122.60 | % | 125.75 | % | |||||||||||||
| (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 based on the actual number of days in the period. |
HINGHAM INSTITUTION FOR SAVINGS
Non-GAAP Reconciliation
Management believes the presentation of the following non-GAAP financial measures provide useful supplemental information that is essential to an investor’s proper understanding of the 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 net gain on equity securities, both realized and unrealized.
| Three Months Ended | Six Months Ended | |||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||
| (In thousands, unaudited) | 2025 | 2026 | 2025 | 2026 | ||||||||||||||||||
| Non-GAAP reconciliation: | ||||||||||||||||||||||
| Net income | $ | 9,414 | $ | 25,443 | $ | 16,538 | $ | 28,294 | ||||||||||||||
| Gain on equity securities, net | (2,516) | (18,953) | (3,797) | (9,033) | ||||||||||||||||||
| Income tax expense (1) | 555 | 4,178 | 837 | 1,991 | ||||||||||||||||||
| Core net income | $ | 7,453 | $ | 10,668 | $ | 13,578 | $ | 21,252 | ||||||||||||||
(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-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 net gain on equity securities, both realized and unrealized.
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| | June 30, | March 31, | June 30, | June 30, | |||||||||||||||||||||||
| (In thousands, unaudited) | 2025 | 2026 | 2026 | 2025 | 2026 | ||||||||||||||||||||||
| | |||||||||||||||||||||||||||
| Non-GAAP efficiency ratio calculation: | |||||||||||||||||||||||||||
| Operating expenses | $ | 7,546 | $ | 7,824 | $ | 8,976 | $ | 15,016 | $ | 16,800 | |||||||||||||||||
| Net interest income | $ | 18,039 | $ | 22,132 | $ | 23,606 | $ | 34,075 | $ | 45,738 | |||||||||||||||||
| Other income | 2,807 | (9,617) | 19,310 | 4,356 | 9,693 | ||||||||||||||||||||||
| Gain on equity securities, net | (2,516) | 9,920 | (18,953) | (3,797) | (9,033) | ||||||||||||||||||||||
| Total revenue | $ | 18,330 | $ | 22,435 | $ | 23,963 | $ | 34,634 | $ | 46,398 | |||||||||||||||||
| Efficiency ratio | 41.17 | % | 34.87 | % | 37.46 | % | 43.36 | % | 36.21 | % | |||||||||||||||||
CONTACT: Patrick R. Gaughen, President and Chief Operating Officer (781) 783-1761
