Hingham Reports Third Quarter 2026 Results

Wider interest margins and higher core earnings contrasted with lower quarterly GAAP profit and increased non-performing assets.

Rhea-AI Summary

Hingham Institution for Savings (NASDAQ: HIFS) reported third-quarter net income of $12.674 million, down from the same period last year. Diluted earnings fell 27.1% to $5.72 from $7.85. Core net income, which excludes after-tax equity securities gains, rose to $11.895 million, with diluted core earnings up 39.1% to $5.37.

Net interest margin reached 2.23%, versus 2.14% in the prior quarter and 1.74% a year earlier. Non-interest-bearing deposits grew 20.2% year over year to $520.2 million, while wholesale funding declined 5.0% to $1.930 billion. Non-performing assets rose to 0.89% of assets from 0.71% a year earlier. Nine-month net income increased to $40.968 million from $33.833 million. Book value per share rose 11.5% year over year to $235.93. A regular $0.63 dividend is payable November 12, 2026, to holders of record November 2.

21 points · 0 major

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0 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter core net income rose to $11.895 million from $8.509 million; diluted core earnings increased 39.1%.
• Moderate pointThird-quarter net interest margin reached 2.23%, up 9 basis points sequentially and 49 basis points year over year.
• Moderate pointNine-month net income increased to $40.968 million from $33.833 million; diluted earnings rose 20.4% to $18.51.
• Moderate pointNine-month core net income reached $33.147 million; diluted core earnings rose 49.4% to $14.98.
• Moderate pointNon-interest-bearing deposits reached $520.2 million, up 20.2% year over year and 15.0% annualized year-to-date.
• Moderate pointWholesale funding declined to $1.930 billion, down 5.0% year over year and 1.8% annualized year-to-date.
• Moderate pointBook value per share reached $235.93, up 11.5% year over year and 9.8% annualized year-to-date.
• Moderate pointThird-quarter efficiency ratio improved to 32.81% from 37.46% sequentially and 38.26% a year earlier.

13 minor points

• Minor pointThird-quarter annualized core returns improved: equity 9.15% versus 7.45%; assets 1.04% versus 0.76% a year earlier.
• Minor pointNine-month annualized returns improved: equity 10.86% versus 10.07%; assets 1.20% versus 1.01% a year earlier.
• Minor pointNine-month annualized core returns improved: equity 8.79% versus 6.57%; assets 0.97% versus 0.66% a year earlier.
• Minor pointRetail and commercial deposits reached $2.084 billion, up 4.7% year over year and 1.9% annualized year-to-date.
• Minor pointFHLB borrowings declined to $1.415 billion, down 7.3% year over year and 4.4% annualized year-to-date.
• Minor pointImmediately available borrowing capacity totaled $957.8 million, alongside $366.3 million in cash and cash equivalents.
• Minor pointNet loans reached $3.918 billion, up 0.1% year over year and 0.6% annualized year-to-date.
• Minor pointTotal assets reached $4.581 billion, up 1.1% year over year and 1.1% annualized year-to-date.
• Minor pointNine-month efficiency ratio improved to 35.01% from 41.51% a year earlier.
• Minor pointNine-month net interest margin improved to 2.13% from 1.63% a year earlier.
• Minor pointCredit charge-offs remained at zero in the first nine months of both 2026 and 2025.
• Minor pointForeclosed property sales included three of seven single-family properties; remaining properties are being marketed.
• Minor point. Forward-looking: it has not happened yet and may not happen.Deposit-business investment includes a dedicated Foreign Mission Group, with additional relationship managers joining in October and November.

Negative

• Moderate pointThird-quarter net income fell to $12.674 million from $17.295 million; diluted earnings declined 27.1% to $5.72.
• Moderate pointNon-performing assets rose to 0.89% of assets, versus 0.69% at year-end and 0.71% a year earlier.
• Moderate pointNon-performing development loan totaled $30.6 million, with a $3.0 million specific credit-loss reserve and conditional guarantee. 4.7% of market cap
• Minor pointThird-quarter annualized returns declined: equity 9.74% versus 15.15%; assets 1.11% versus 1.54% a year earlier.
• Minor pointNon-performing loans rose to 0.93% of loans, versus 0.80% at year-end and 0.81% a year earlier.

4 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Multifamily loan of $6.2 million entered non-accrual status because foreclosure is probable; the bank anticipates no principal loss.
• Minor pointOperating expenses averaged 0.73% of assets in Q3, versus 0.79% sequentially but 0.67% a year earlier.
• Minor pointNine-month operating expenses averaged 0.74% of assets, up from 0.67% a year earlier.
• Minor pointThird-quarter rate on interest-bearing liabilities increased 1 basis point sequentially.

News Explained

Hingham’s third-quarter release reports 2,200,250 shares outstanding at September 30, 2026, versus 2,181,250 at September 30, 2025. For an unchanged holding, the higher share count means a smaller ownership percentage, absent offsetting changes.

Key Figures

Quarterly net income: $12,674,000 vs. $17,295,000 Quarterly diluted EPS: $5.72 vs. $7.85 Quarterly core net income: $11,895,000 vs. $8,509,000 +5 more

Quarterly net income

$12,674,000 vs. $17,295,000

Q3 2026 vs. Q3 2025

Quarterly diluted EPS

$5.72 vs. $7.85

Q3 2026 vs. Q3 2025

Quarterly core net income

$11,895,000 vs. $8,509,000

Q3 2026 vs. Q3 2025

Core diluted EPS growth

39.1% increase

Q3 2026 vs. Q3 2025

Nine-month core net income

$33,147,000 vs. $22,087,000

Nine months ended September 30, 2026 vs. 2025

Net interest margin

2.23% vs. 2.14%

Q3 2026 vs. Q2 2026

Non-performing assets to total assets

0.89% vs. 0.71%

September 30, 2026 vs. September 30, 2025

Regular cash dividend

$0.63 per share

Declared September 30, 2026

Previous Earnings Reports

2 past events · Latest: Jul 17

Same Type 2 events

1. Jul 17

   Earnings report

   24h Move

   -1.2%

   Reported strong second-quarter net income, diluted EPS growth, and higher net interest margin.

2. Oct 10

   Earnings report

   24h Move

   -4.6%

   Reported year-over-year net income growth alongside quarterly margin and dividend data.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap, non-performing assets, non-accrual, +1 more

5 terms

gaap financial

"reconciliation between United States Generally Accepted Accounting Principles (“GAAP”) net income"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"non-GAAP core net income"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

non-performing assets financial

"non-performing assets ... totaled 0.89% of total assets"

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

non-accrual financial

"management placed it on non-accrual status as foreclosure is probable"

A non-accrual loan or asset is one for which a lender has stopped counting expected interest as income because the borrower is very late on payments or in serious financial trouble. For investors, non-accruals signal that future cash from interest is uncertain and that the lender may need to write down the loan’s value or set aside extra reserves, similar to a landlord who stops recording rent when a tenant stops paying.

brokered deposits financial

"Wholesale funds, which include Federal Home Loan Bank (“FHLB”) borrowings, brokered deposits"

Brokered deposits are large sums of customer cash placed at a bank through a third-party intermediary that shops around for the best interest rate, like a broker assembling a big bucket of savings and directing it to a bank. They matter to investors because they can quickly change a bank’s funding level and cost — providing fast liquidity but also adding volatility and regulatory scrutiny that can affect a bank’s stability and profitability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HINGHAM, Mass., Oct. 16, 2026 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham, Massachusetts, announced results for the quarter ended September 30, 2026.

Earnings

Net income for the quarter ended September 30, 2026 was $12,674,000 or $5.76 per share basic and $5.72 per share diluted, as compared to $17,295,000 or $7.93 per share basic and $7.85 per share diluted for the same period last year. The Bank’s annualized return on average equity for the third quarter of 2026 was 9.74%, and the annualized return on average assets was 1.11%, as compared to 15.15% and 1.54% for the same period last year. Net income per share (diluted) for the third quarter of 2026 decreased by 27.1% compared to the same period in 2025.

Core net income for the quarter ended September 30, 2026, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was $11,895,000 or $5.41 per share basic and $5.37 per share diluted, as compared to $8,509,000 or $3.90 per share basic and $3.86 per share diluted for the same period last year. The Bank’s annualized core return on average equity for the third quarter of 2026 was 9.15%, and the annualized core return on average assets was 1.04%, as compared to 7.45% and 0.76% for the same period last year. Core net income per share (diluted) for the third quarter of 2026 increased by 39.1% compared to the same period in 2025.

Net income for the nine months ended September 30, 2026 was $40,968,000 or $18.68 per share basic and $18.51 per share diluted, as compared to $33,833,000 or $15.51 per share basic and $15.37 per share diluted for the same period last year. The Bank’s annualized return on average equity for the first nine months of 2026 was 10.86%, and the annualized return on average assets was 1.20%, as compared to 10.07% and 1.01% for the same period in 2025. Net income per share (diluted) for the first nine months of 2026 increased by 20.4% over the same period in 2025.

Core net income for the nine months ended September 30, 2026, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was $33,147,000 or $15.11 per share basic and $14.98 per share diluted, as compared to $22,087,000 or $10.13 per share basic and $10.03 per share diluted for the same period last year. The Bank’s annualized core return on average equity for the first nine months of 2026 was 8.79%, and the annualized core return on average assets was 0.97%, as compared to 6.57% and 0.66% for the same period in 2025. Core net income per share (diluted) for the first nine months of 2026 increased by 49.4% over the same period in 2025.

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 $4.581 billion at September 30, 2026, representing 1.1% annualized growth year-to-date and a 1.1% increase from September 30, 2025.

Net loans increased to $3.918 billion at September 30, 2026, representing 0.6% annualized growth year-to-date and a 0.1% increase from September 30, 2025.

Retail and commercial deposits were $2.084 billion at September 30, 2026, representing 1.9% annualized growth year-to-date and a 4.7% increase from September 30, 2025.

Non-interest-bearing deposits, included in retail and commercial deposits, were $520.2 million at September 30, 2026, representing 15.0% annualized growth year-to-date and 20.2% growth from September 30, 2025.

Growth in non-interest-bearing deposits in the third 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, D.C., and San Francisco. The Bank has also established a dedicated Foreign Mission Group focused on its diplomatic customers, building on several years of growth and experience. This group consists of existing staff, along with new relationship managers who will be joining the Bank in October and November with significant experience serving these clients.

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 include Federal Home Loan Bank (“FHLB”) borrowings, brokered deposits, and Internet listing service time deposits, were $1.930 billion at September 30, 2026, representing a 1.8% annualized decline year-to-date and a 5.0% decline from September 30, 2025, as the Bank replaced these funds with retail and commercial deposits over the last year.

In the first nine months of 2026, the Bank continued to manage its wholesale funding mix to minimize the cost of funds in the current environment, while continuing to replace maturing longer-term liabilities. Wholesale deposits, which include brokered and Internet listing service time deposits, were $514.7 million at September 30, 2026, representing 6.1% annualized growth year-to-date and 1.8% growth from September 30, 2025. Borrowings from the FHLB totaled $1.415 billion at September 30, 2026, representing a 4.4% annualized decline year-to-date and a 7.3% decline from September 30, 2025. As of September 30, 2026, the Bank maintained an additional $957.8 million in immediately available borrowing capacity at the FHLB of Boston and the Federal Reserve Bank (“FRB”), in addition to $366.3 million in cash and cash equivalents.

Book value per share was $235.93 as of September 30, 2026, representing 9.8% annualized growth year-to-date and 11.5% growth from September 30, 2025. In addition to the increase in book value per share, the Bank has declared $3.22 in dividends per share since September 30, 2025.

On September 30, 2026, the Bank declared a regular cash dividend of $0.63 per share. This dividend will be paid on November 12, 2026, to stockholders of record as of November 2, 2026. This will be the Bank’s 131st 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 repurchases in light of the prospective return of such options. The Bank received regulatory approval in December 2025 for a share repurchase program of $20.0 million. This approval expires on December 4, 2026. As of September 30, 2026, no shares had been repurchased under this program and the Bank is under no obligation to repurchase shares at all. The consideration of these options may result in special dividends, if any, significantly above or below the regular quarterly dividend.

Operational Performance Metrics

The net interest margin for the quarter ended September 30, 2026 increased 9 basis points to 2.23%, as compared to 2.14% in the quarter ended June 30, 2026. This improvement was primarily driven by an increase in the yield on interest-earning assets, as the benefit of non-interest-bearing deposit growth on the cost of funds was offset by a 1 basis point increase in the rate on interest-bearing liabilities. The yield on interest-earning assets increased by 8 basis points in the third quarter of 2026, driven primarily by a higher yield on loans, as the Bank continued to originate and reprice existing adjustable-rate loans at higher rates, partially offset by a lower dividend on FHLB stock.

The net interest margin for the quarter ended September 30, 2026 increased 49 basis points to 2.23%, as compared to 1.74% for the same period last year. The Bank experienced significant growth in non-interest-bearing deposits and a significant decline in the cost of interest-bearing liabilities when compared to the prior year. This was driven primarily by the repricing of the Bank’s funding sources, as the Bank continued to reduce retail and commercial deposit rates and to take advantage of the inverted yield curve — over most of the last twelve months — by replacing maturing FHLB advances and brokered deposits at lower rates. During this period, the yield on interest-earning assets increased, driven primarily by an increase in the yield on loans, partially offset by lower yields on cash held at the FRB and a lower dividend on FHLB stock.

Key credit and operational metrics were mixed in the third quarter of 2026. At September 30, 2026, non-performing assets, which included three loans secured by real estate and six properties held in other real estate owned, totaled 0.89% of total assets, compared to 0.69% at December 31, 2025 and 0.71% at September 30, 2025. Non-performing loans as a percentage of the total loan portfolio totaled 0.93% at September 30, 2026, compared to 0.80% at December 31, 2025 and 0.81% at September 30, 2025. The Bank did not record any charge-offs in the first nine months of 2026 or 2025.

Non-performing loans and non-performing asset activity included the following during the third quarter of 2026:

• Non-performing loans at both June 30, 2026 and September 30, 2026 included a commercial real estate loan with an outstanding balance of $30.6 million, which is secured by an entitled 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 September 30, 2026 includes a $3.0 million specific reserve allocated to this credit.
• Non-performing loans at September 30, 2026 included a commercial real estate loan with an outstanding balance of $6.2 million, secured by six multifamily buildings located in Washington, D.C. Although the loan was less than 90 days past due, management placed it on non-accrual status as foreclosure is probable. The Bank does not anticipate a principal loss associated with this loan.
• Non-performing assets at both June 30, 2026 and September 30, 2026 included other real estate owned associated with a borrower specializing in affordable housing in Washington, D.C. Following litigation, the Bank obtained two multifamily properties and seven single-family properties in the spring of 2026. All properties were subsequently listed for sale, and the Bank has sold three of the seven single-family properties. The Bank is actively marketing the remaining properties for sale and remains engaged with interested buyers.
• Non-performing loans at both June 30, 2026 and September 30, 2026 included a small residential real estate loan.
  
  

The efficiency ratio, as defined on page 11 below, decreased to 32.81% for the third quarter of 2026, as compared to 37.46% in the prior quarter and 38.26% for the same period last year. Operating expenses as a percentage of average assets were 0.73% for the third quarter of 2026, as compared to 0.79% for the prior quarter and 0.67% for the same period last year. The decrease versus the prior quarter reflects a Fiserv online banking termination fee incurred in the prior quarter. 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 overstate 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.

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 and will be a key driver of returns in an environment in which quality loan origination opportunities are more limited and other funding sources remain comparatively more expensive. 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, these holdings 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 September 30, 2026 with the Federal Deposit Insurance Corporation (FDIC) on or about November 4, 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 September 30,						Nine Months Ended September 30,
	2025			2026			2025			2026
(Unaudited)
Key Performance Ratios
Return on average assets (1)	1.54	%		1.11	%		1.01	%		1.20	%
Return on average equity (1)	15.15			9.74			10.07			10.86
Core return on average assets (1) (5)	0.76			1.04			0.66			0.97
Core return on average equity (1) (5)	7.45			9.15			6.57			8.79
Interest rate spread (1) (2)	1.04			1.50			0.93			1.43
Net interest margin (1) (3)	1.74			2.23			1.63			2.13
Operating expenses to average assets (1)	0.67			0.73			0.67			0.74
Efficiency ratio (4)	38.26			32.81			41.51			35.01
Average equity to average assets	10.14			11.37			10.06			11.07
Average interest-earning assets to average interest-bearing liabilities	123.12			127.30			122.78			126.27

	September 30, 2025					December 31, 2025				September 30, 2026
(Unaudited)
Asset Quality Ratios
Allowance for credit losses/total loans			0.71	%		0.73		%				0.77	%
Allowance for credit losses/non-performing loans			87.32			91.46						82.11
Non-performing loans/total loans			0.81			0.80						0.93
Non-performing loans/total assets			0.71			0.69						0.80
Non-performing assets/total assets			0.71			0.69						0.89
Share Related
Book value per share	$	211.67				$	219.82			$	235.93
Market value per share	$	263.78				$	283.96			$	282.59
Shares outstanding at end of period		2,181,250					2,182,250				2,200,250

(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)	September 30, 2025				December 31, 2025				September 30, 2026
(Unaudited)
ASSETS
Cash and due from banks	$	6,809			$	6,683			$	4,811
Federal Reserve and other short-term investments		353,216				362,925				361,457
Cash and cash equivalents		360,025				369,608				366,268
CRA investment		9,012				9,050				8,619
Other marketable equity securities		125,098				141,294				156,223
Securities, at fair value		134,110				150,344				164,842
Securities held to maturity, at amortized cost		6,494				7,499				9,500
Federal Home Loan Bank stock, at cost		63,117				61,987				59,685
Loans, net of allowance for credit losses of $28,005 at September 30, 2025, $28,555 at December 31, 2025 and $30,255 at September 30, 2026		3,913,774				3,899,008				3,917,985
Other real estate owned		—				—				4,064
Bank-owned life insurance		14,236				14,318				14,569
Premises and equipment, net		16,005				15,911				15,555
Accrued interest receivable		8,856				9,213				9,575
Other assets		14,608				14,766				19,099
Total assets	$	4,531,225			$	4,542,654			$	4,581,142

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits	$	2,063,303			$	2,080,661			$	2,079,269
Non-interest-bearing deposits		432,653				467,656				520,163
Total deposits		2,495,956				2,548,317				2,599,432
Federal Home Loan Bank advances		1,526,250				1,463,815				1,415,340
Mortgagors’ escrow accounts		16,817				18,427				18,504
Accrued interest payable		14,652				11,831				10,951
Deferred income tax liability, net		7,108				9,495				9,015
Other liabilities		8,737				11,061				8,785
Total liabilities		4,069,520				4,062,946				4,062,027
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; 2,181,250 shares issued and outstanding at September 30, 2025, 2,182,250 at December 31, 2025, and 2,200,250 at September 30, 2026		2,181				2,182				2,200
Additional paid-in capital		15,821				16,004				18,431
Undivided profits		443,715				461,530				498,343
Accumulated other comprehensive income (loss)		(12	)			(8	)			141
Total stockholders’ equity		461,705				479,708				519,115
Total liabilities and stockholders’ equity	$	4,531,225			$	4,542,654			$	4,581,142

HINGHAM INSTITUTION FOR SAVINGS Consolidated Statements of Income
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share amounts)		2025			2026		2025			2026
(Unaudited)
Interest and dividend income:
Loans	$	47,672		$	49,841		$	139,645		$		144,940
Debt securities		97			255			289				499
Equity securities		1,401			1,309			4,217				4,274
Federal Reserve and other short-term investments		3,739			3,356			9,866				9,737
Total interest and dividend income		52,909			54,761			154,017				159,450
Interest expense:
Deposits		17,663			15,900			54,125				47,059
Federal Home Loan Bank and Federal Reserve Bank		15,903			13,846			46,474				41,638
Total interest expense		33,566			29,746			100,599				88,697
Net interest income		19,343			25,015			53,418				70,753
Provision for credit losses		275			700			1,025				1,700
Net interest income, after provision for credit losses		19,068			24,315			52,393				69,053
Other income:
Customer service fees on deposits		132			163			406				499
Increase in cash surrender value of bank-owned life insurance		93			81			256				251
Gain on equity securities, net		11,270			999			15,067				10,032
Miscellaneous		64			108			186				262
Total other income		11,559			1,351			15,915				11,044
Operating expenses:
Salaries and employee benefits		4,501			4,685			13,360				13,922
Occupancy and equipment		437			490			1,293				1,363
Data processing		849			896			2,331				2,563
Deposit insurance		698			547			2,230				1,725
Foreclosure and related		39			493			63				774
Marketing		109			221			467				810
Other general and administrative		879			990			2,784				3,965
Total operating expenses		7,512			8,322			22,528				25,122
Income before income taxes		23,115			17,344			45,780				54,975
Income tax provision		5,820			4,670			11,947				14,007
Net income	$	17,295		$	12,674		$	33,833		$		40,968
Cash dividends declared per common share	$	0.63		$	0.63		$	1.89		$		1.89
Weighted average shares outstanding:
Basic		2,181			2,199			2,181				2,194
Diluted		2,204			2,216			2,202				2,213
Earnings per share:
Basic	$	7.93		$	5.76		$	15.51		$		18.68
Diluted	$	7.85		$	5.72		$	15.37		$		18.51

HINGHAM INSTITUTION FOR SAVINGS Net Interest Income Analysis
	Three Months Ended
	September 30, 2025										June 30, 2026											September 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)	$	3,946,966		$	47,672		4.79		%		$	3,925,640			$		48,093		4.91	%		$	3,945,727			$	49,841		5.01	%
Securities (3) (4)		139,154			1,498		4.27					148,050					1,533		4.15				157,132				1,564		3.95
Short-term investments (5)		336,213			3,739		4.41					353,225					3,256		3.70				356,043				3,356		3.74
Total interest-earning assets		4,422,333			52,909		4.75					4,426,915					52,882		4.79				4,458,902				54,761		4.87
Other assets		82,490										105,849											117,331
Total assets	$	4,504,823									$	4,532,764										$	4,576,233
Liabilities and stockholders’ equity:
Interest-bearing deposits (6)	$	2,085,424			17,663			3.36	%		$	2,101,178					15,582		2.97	%		$	2,105,232				15,900		3.00	%
Borrowed funds		1,506,359			15,903			4.19				1,398,343					13,694		3.93				1,397,351				13,846		3.93
Total interest-bearing liabilities		3,591,783			33,566			3.71				3,499,521					29,276		3.36				3,502,583				29,746		3.37
Non-interest-bearing deposits		437,977										507,665											526,955
Other liabilities		18,463										26,204											26,423
Total liabilities		4,048,223										4,033,390											4,055,961
Stockholders’ equity		456,600										499,374											520,272
Total liabilities and stockholders’ equity	$	4,504,823									$	4,532,764										$	4,576,233
Net interest income				$	19,343										$		23,606									$	25,015
Weighted average interest rate spread							1.04		%										1.43	%									1.50	%
Net interest margin (7)							1.74		%										2.14	%									2.23	%
Average interest-earning assets to average interest-bearing liabilities (8)		123.12		%								126.50			%								127.30			%

(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
	Nine Months Ended September 30,
	2025									2026
	Average Balance (9)			Interest			Yield/ Rate (10)			Average Balance (9)			Interest			Yield/ Rate (10)
(Dollars in thousands)
(Unaudited)
Loans (1) (2)	$	3,943,153		$	139,645		4.72	%		$	3,931,634		$	144,940		4.93	%
Securities (3) (4)		135,154			4,506		4.44				149,300			4,773		4.27
Short-term investments (5)		297,571			9,866		4.42				350,615			9,737		3.71
Total interest-earning assets		4,375,878			154,017		4.69				4,431,549			159,450		4.81
Other assets		79,989									110,164
Total assets	$	4,455,867								$	4,541,713
Interest-bearing deposits (6)	$	2,109,589			54,125		3.42	%		$	2,099,151			47,059		3.00	%
Borrowed funds		1,454,455			46,474		4.26				1,410,429			41,638		3.95
Total interest-bearing liabilities		3,564,044			100,599		3.76				3,509,580			88,697		3.38
Non-interest-bearing deposits		427,219									502,711
Other liabilities		16,449									26,546
Total liabilities		4,007,712									4,038,837
Stockholders’ equity		448,155									502,876
Total liabilities and stockholders’ equity	$	4,455,867								$	4,541,713
Net interest income				$	53,418								$	70,753
Weighted average interest rate spread							0.93	%								1.43	%
Net interest margin (7)							1.63	%								2.13	%
Average interest-earning assets to average interest-bearing liabilities (8)		122.78	%								126.27	%

(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 provides 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								Nine Months Ended
	September 30,								September 30,
(In thousands, unaudited)		2025				2026			2025				2026
Non-GAAP reconciliation:
Net income	$	17,295			$	12,674			$	33,833			$	40,968
Gain on equity securities, net		(11,270	)			(999	)			(15,067	)			(10,032	)
Income tax expense (1)		2,484				220				3,321				2,211
Core net income	$	8,509			$	11,895			$	22,087			$	33,147

(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												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,
(In thousands, unaudited)		2025				2026				2026				2025				2026
Non-GAAP efficiency ratio calculation:
Operating expenses	$	7,512			$	8,976			$	8,322			$	22,528			$	25,122
Net interest income	$	19,343			$	23,606			$	25,015			$	53,418			$	70,753
Other income		11,559				19,310				1,351				15,915				11,044
Gain on equity securities, net		(11,270	)			(18,953	)			(999	)			(15,067	)			(10,032	)
Total revenue	$	19,632			$	23,963			$	25,367			$	54,266			$	71,765
Efficiency ratio		38.26	%			37.46	%			32.81	%			41.51	%			35.01	%

CONTACT: Patrick R. Gaughen, President and Chief Operating Officer (781) 783-1761

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Hingham HIFS third-quarter 2026 earnings?

Hingham earned $12.674 million, or $5.72 per diluted share, compared with $17.295 million, or $7.85 per diluted share, a year earlier. Core earnings, excluding after-tax realized and unrealized equity securities gains, were $11.895 million, or $5.37 per diluted share, versus $8.509 million, or $3.86 per diluted share.

When will Hingham HIFS pay its next regular dividend?

The regular dividend of $0.63 per share will be paid on November 12, 2026, to stockholders of record on November 2, 2026. It will be the bank’s 131st consecutive quarterly dividend.

Has Hingham HIFS used its $20 million share repurchase program?

Hingham had repurchased no shares under the program as of September 30, 2026. Regulatory approval for the $20.0 million program was received in December 2025 and expires on December 4, 2026. The bank is under no obligation to repurchase shares.