Hingham Savings Reports First Quarter 2026 Results
Rhea-AI Summary
Hingham Institution for Savings (NASDAQ: HIFS) reported Q1 2026 results for the quarter ended March 31, 2026. GAAP net income was $2.851M ($1.29 diluted), down 60.2% YoY; core net income was $10.584M ($4.79 diluted), up 72.3% YoY.
Key operating metrics: NIM 2.04%, core ROE 8.66%, non-performing loans 0.97% of loans. The bank declared a $0.63 regular dividend payable May 13, 2026.
Positive
- Core net income +72.3% YoY to $10.584M
- Core return on average equity rose to 8.66%
- Non-interest-bearing deposits +20.2% YoY
- Net interest margin increased to 2.04% (from 1.50% YoY)
Negative
- GAAP net income -60.2% YoY to $2.851M
- GAAP return on average equity fell to 2.33%
- Non-performing loans increased to 0.97% of loans
Key Figures
Market Reality Check
Peers on Argus
HIFS gained 1.34% while regional bank peers like SPFI (-0.55%), EGBN (-0.55%), and GNTY (-1.46%) declined, pointing to a stock-specific reaction rather than a sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 10 | Q3 2025 earnings | Positive | -4.6% | Strong Q3 2025 earnings with higher ROE, ROAA and NIM but price fell. |
| Jul 11 | Q2 2025 earnings | Positive | +2.5% | Q2 2025 net income and core earnings more than doubled year-over-year. |
| Apr 11 | Q1 2025 earnings | Positive | +4.6% | Q1 2025 net income grew and core earnings surged with higher NIM. |
| Oct 11 | Q3 2024 earnings | Positive | +2.6% | Q3 2024 showed higher EPS and NIM with minimal non-performing assets. |
| Jul 12 | Q2 2024 earnings | Negative | +7.0% | Q2 2024 earnings and core income declined sharply versus prior year. |
Earnings reports have generally been received positively, with most past releases followed by share price gains despite occasional increases in non-performing loans.
Over the last several earnings cycles, Hingham Institution for Savings has reported improving profitability and expanding net interest margin. Q2 and Q3 2025 showed strong year-over-year net income growth, higher ROE, and better efficiency ratios, while Q1 2025 highlighted a sharp rebound in core earnings and very low non-performing asset levels. Later in 2025, asset quality pressure emerged around a $30.6M commercial real estate loan, but book value per share and dividends continued to rise. Today’s Q1 2026 release, with weaker GAAP earnings but much stronger core results and higher NIM, fits this narrative of margin recovery amid evolving credit metrics.
Historical Comparison
In the past five earnings releases, HIFS moved an average of 2.44%. Today’s pre-news gain of 1.34% sits within the typical range for this catalyst.
Recent earnings show a progression from low-margin, low-ROE periods in 2024 toward higher net interest margin, stronger core returns, and rising book value through 2025 and into Q1 2026, alongside gradually higher but still managed non-performing loan levels.
Market Pulse Summary
This announcement details Q1 2026 results where GAAP earnings declined but core net income, net interest margin, and book value per share improved. Asset quality metrics weakened, with higher non-performing loans and assets, yet management reported no charge-offs and emphasized collateral coverage. Compared with prior earnings reports that highlighted steady NIM expansion and rising book value, investors may focus on how core returns, credit performance in Washington, D.C. exposures, and deposit mix trends evolve in upcoming quarters.
Key Terms
net interest margin financial
efficiency ratio financial
non-performing assets financial
non-performing loans financial
Federal Home Loan Bank financial
Form 10-Q regulatory
FDIC regulatory
basis points financial
AI-generated analysis. Not financial advice.
HINGHAM, Mass., April 17, 2026 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham, Massachusetts announced earnings for the quarter ended March 31, 2026.
Earnings
Net income for the quarter ended March 31, 2026 was
Core net income for the quarter ended March 31, 2026, which represents net income excluding the after-tax net gain (loss) on equity securities, both realized and unrealized, was
See Page 10 for a reconciliation between 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 decreased to
Retail and commercial deposits increased to
Non-interest-bearing deposits, included in retail and commercial deposits, were
Growth in non-interest bearing deposits in the first quarter of 2026 and over the last two years reflected 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 in times of uncertainty.
Wholesale funds, which include Federal Home Loan Bank (“FHLB”) borrowings, brokered deposits, and Internet listing service deposits, were
In the first quarter of 2026, the Bank continued to manage its wholesale funding mix to lower its cost of funds while taking advantage of the inverted yield curve by adding lower rate longer term liabilities. Wholesale deposits, which include brokered and Internet listing service time deposits, were
Book value per share was
On March 25, 2026, the Bank declared a regular cash dividend of
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 March 31, 2026 increased 15 basis points to
The net interest margin for the quarter ended March 31, 2026 increased 54 basis points as compared to
Key credit and operational metrics remained acceptable in the first quarter of 2026. On March 31, 2026, non-performing assets, which included six loans secured by real estate and one property held in foreclosed assets, totaled
Non-performing loans and non-performing assets included the following at December 31, 2025 and March 31, 2026:
- Non-performing loans at both December 31, 2025 and March 31, 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. - Non-performing assets and non-performing loans at March 31, 2026 included two loans and a single property associated with a relationship with a borrower specializing in affordable multifamily properties in Washington D.C. The Bank foreclosed on one loan associated with this relationship in March 2026 and took the multifamily property back at auction at a value of
$1.5 million . The Bank has reached an agreement with this customer in which the Bank will acquire title to the collateral properties securing all of these loans, as well as five additional unencumbered properties in Washington, D.C., during the second quarter. The Bank intends to begin marketing this collateral for sale as it acquires title. Current appraisals for the entire collateral pool reflect a value of approximately$6.7 million against original indebtedness of approximately$4.7 million . The Bank does not anticipate any principal loss associated with this relationship. - Non-performing loans at March 31, 2026 included a construction loan with an outstanding balance of
$3.7 million to a different affordable multifamily developer in Washington, D.C. The Bank foreclosed on this loan in March 2026, did not take title, and has assigned the successful bid to a third party purchaser, with an anticipated closing in May 2026. The Bank does not anticipate any loss associated with this transaction, as the purchase price and cash collateral held at the Bank exceed the loan balance. - Non-performing loans at March 31, 2026 also included two small home equity lines of credit in Massachusetts, one of which was also included in December 31, 2025.
The efficiency ratio, as defined on page 6, fell 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 the 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 March 31, 2026 with the Federal Deposit Insurance Corporation (FDIC) on or about May 6, 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.
Annual Meeting
The Bank will hold its Annual Meeting of Stockholders (the “Meeting”) at 2:00 PM EST on Thursday, April 30, 2026 at the Hingham Historical Society (Old Derby Academy), located at 34 Main Street, Hingham, Massachusetts. We strongly encourage shareholders to attend in person, although they may also join the Meeting by streaming video. We strongly encourage all shareholders to vote by proxy. Electronic voting will not be available.
Following the business meeting, the Bank will hold an informal meeting to discuss the results of the prior year and the operations of the Bank, as well as a question and answers session. In addition to participating in the meeting itself, we also encourage shareholders to submit questions in writing in advance using the form on the Bank’s website (click here).
| HINGHAM INSTITUTION FOR SAVINGS Selected Financial Ratios | |||||
| Three Months Ended March 31, | |||||
| 2025 | 2026 | ||||
| (Unaudited) | |||||
| Key Performance Ratios | |||||
| Return on average assets (1) | 0.64 | % | 0.25 | % | |
| Return on average equity (1) | 6.46 | 2.33 | |||
| Core return on average assets (1) (5) | 0.55 | 0.94 | |||
| Core return on average equity (1) (5) | 5.56 | 8.66 | |||
| Interest rate spread (1) (2) | 0.80 | 1.35 | |||
| Net interest margin (1) (3) | 1.50 | 2.04 | |||
| Operating expenses to average assets (1) | 0.68 | 0.69 | |||
| Efficiency ratio (4) | 45.82 | 34.87 | |||
| Average equity to average assets | 9.98 | 10.82 | |||
| Average interest-earning assets to average interest bearing liabilities | 122.26 | 124.99 | |||
| March 31, 2025 | December 31, 2025 | March 31, 2026 | ||||||||||
| (Unaudited) | ||||||||||||
| Asset Quality Ratios | ||||||||||||
| Allowance for credit losses/total loans | 0.69 | % | 0.73 | % | 0.74 | % | ||||||
| Allowance for credit losses/non-performing loans | 1,487.46 | 91.46 | 76.04 | |||||||||
| Non-performing loans/total loans | 0.05 | 0.80 | 0.97 | |||||||||
| Non-performing loans/total assets | 0.04 | 0.69 | 0.84 | |||||||||
| Non-performing assets/total assets | 0.04 | 0.69 | 0.87 | |||||||||
| Share Related | ||||||||||||
| Book value per share | $ | 200.69 | $ | 219.82 | $ | 220.06 | ||||||
| Market value per share | $ | 237.80 | $ | 283.96 | $ | 285.84 | ||||||
| Shares outstanding at end of period | 2,180,250 | 2,182,250 | 2,193,294 | |||||||||
(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 (loss), excluding the net gain (loss) 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 (loss) on equity securities, both realized and unrealized.
| HINGHAM INSTITUTION FOR SAVINGS Consolidated Balance Sheets | |||||||||||
| (In thousands, except share amounts) | March 31, 2025 | December 31, 2025 | March 31, 2026 | ||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 8,664 | $ | 6,683 | $ | 5,225 | |||||
| Federal Reserve and other short-term investments | 352,977 | 362,925 | 381,591 | ||||||||
| Cash and cash equivalents | 361,641 | 369,608 | 386,816 | ||||||||
| CRA investment | 8,900 | 9,050 | 8,994 | ||||||||
| Other marketable equity securities | 109,335 | 141,294 | 131,997 | ||||||||
| Securities, at fair value | 118,235 | 150,344 | 140,991 | ||||||||
| Securities held to maturity, at amortized cost | 6,494 | 7,499 | 7,499 | ||||||||
| Federal Home Loan Bank stock, at cost | 61,322 | 61,987 | 60,534 | ||||||||
| Loans, net of allowance for credit losses of | 3,924,108 | 3,899,008 | 3,895,914 | ||||||||
| Foreclosed assets | — | — | 1,522 | ||||||||
| Bank-owned life insurance | 14,064 | 14,318 | 14,400 | ||||||||
| Premises and equipment, net | 16,244 | 15,911 | 15,724 | ||||||||
| Accrued interest receivable | 9,006 | 9,213 | 9,463 | ||||||||
| Other assets | 12,314 | 14,766 | 14,946 | ||||||||
| Total assets | $ | 4,523,428 | $ | 4,542,654 | $ | 4,547,809 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Interest-bearing deposits | $ | 2,146,091 | $ | 2,080,661 | $ | 2,089,437 | |||||
| Non-interest-bearing deposits | 427,287 | 467,656 | 513,647 | ||||||||
| Total deposits | 2,573,378 | 2,548,317 | 2,603,084 | ||||||||
| Federal Home Loan Bank advances | 1,471,000 | 1,463,815 | 1,413,540 | ||||||||
| Mortgagors’ escrow accounts | 15,820 | 18,427 | 17,591 | ||||||||
| Accrued interest payable | 11,266 | 11,831 | 11,850 | ||||||||
| Deferred income tax liability, net | 4,069 | 9,495 | 6,076 | ||||||||
| Other liabilities | 10,338 | 11,061 | 13,005 | ||||||||
| Total liabilities | 4,085,871 | 4,062,946 | 4,065,146 | ||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, | — | — | — | ||||||||
| Common stock, | 2,180 | 2,182 | 2,193 | ||||||||
| Additional paid-in capital | 15,622 | 16,004 | 17,443 | ||||||||
| Undivided profits | 419,755 | 461,530 | 463,000 | ||||||||
| Accumulated other comprehensive income (loss) | — | (8 | ) | 27 | |||||||
| Total stockholders’ equity | 437,557 | 479,708 | 482,663 | ||||||||
| Total liabilities and stockholders’ equity | $ | 4,523,428 | $ | 4,542,654 | $ | 4,547,809 | |||||
| HINGHAM INSTITUTION FOR SAVINGS Consolidated Statements of Net Income | |||||||
| Three Months Ended March 31, | |||||||
| (In thousands, except per share amounts) | 2025 | 2026 | |||||
| (Unaudited) | |||||||
| Interest and dividend income: | |||||||
| Loans | $ | 45,221 | $ | 47,006 | |||
| Debt securities | 95 | 113 | |||||
| Equity securities | 1,451 | 1,563 | |||||
| Federal Reserve and other short-term investments | 3,055 | 3,125 | |||||
| Total interest and dividend income | 49,822 | 51,807 | |||||
| Interest expense: | |||||||
| Deposits | 18,621 | 15,577 | |||||
| Federal Home Loan Bank advances | 15,165 | 14,098 | |||||
| Total interest expense | 33,786 | 29,675 | |||||
| Net interest income | 16,036 | 22,132 | |||||
| Provision for credit losses | 300 | 500 | |||||
| Net interest income, after provision for credit losses | 15,736 | 21,632 | |||||
| Other income: | |||||||
| Customer service fees on deposits | 135 | 166 | |||||
| Increase in cash surrender value of bank-owned life insurance | 84 | 82 | |||||
| Gain (loss) on equity securities, net | 1,281 | (9,920 | ) | ||||
| Miscellaneous | 49 | 55 | |||||
| Total other income (loss) | 1,549 | (9,617 | ) | ||||
| Operating expenses: | |||||||
| Salaries and employee benefits | 4,467 | 4,679 | |||||
| Occupancy and equipment | 439 | 477 | |||||
| Data processing | 724 | 817 | |||||
| Deposit insurance | 748 | 637 | |||||
| Foreclosure and related | 10 | 75 | |||||
| Marketing | 136 | 248 | |||||
| Other general and administrative | 946 | 891 | |||||
| Total operating expenses | 7,470 | 7,824 | |||||
| Income before income taxes | 9,815 | 4,191 | |||||
| Income tax provision | 2,691 | 1,340 | |||||
| Net income | $ | 7,124 | $ | 2,851 | |||
| Cash dividends declared per common share | $ | 0.63 | $ | 0.63 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 2,180 | 2,185 | |||||
| Diluted | 2,201 | 2,209 | |||||
| Earnings per share: | |||||||
| Basic | $ | 3.27 | $ | 1.30 | |||
| Diluted | $ | 3.24 | $ | 1.29 | |||
| HINGHAM INSTITUTION FOR SAVINGS Net Interest Income Analysis | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, 2025 | December 31, 2025 | March 31, 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) | $ | 3,929,828 | $ | 45,221 | 4.67 | % | $ | 3,928,951 | $ | 47,707 | 4.82 | % | $ | 3,923,289 | $ | 47,006 | 4.86 | % | |||||||||||
| Securities (3) (4) | 130,674 | 1,546 | 4.80 | 139,905 | 1,642 | 4.66 | 142,557 | 1,676 | 4.77 | ||||||||||||||||||||
| Short-term investments (5) | 278,722 | 3,055 | 4.45 | 348,254 | 3,467 | 3.95 | 342,426 | 3,125 | 3.70 | ||||||||||||||||||||
| Total interest-earning assets | 4,339,224 | 49,822 | 4.66 | 4,417,110 | 52,816 | 4.74 | 4,408,272 | 51,807 | 4.77 | ||||||||||||||||||||
| Other assets | 79,209 | 94,257 | 107,202 | ||||||||||||||||||||||||||
| Total assets | $ | 4,418,433 | $ | 4,511,367 | $ | 4,515,474 | |||||||||||||||||||||||
| Liabilities and stockholders’ equity: | ` | ||||||||||||||||||||||||||||
| Interest-bearing deposits (6) | $ | 2,141,294 | 18,621 | 3.53 | % | $ | 2,069,647 | 16,454 | 3.15 | % | $ | 2,090,883 | 15,577 | 3.02 | % | ||||||||||||||
| Borrowed funds | 1,407,844 | 15,165 | 4.37 | 1,491,404 | 15,374 | 4.09 | 1,436,018 | 14,098 | 3.98 | ||||||||||||||||||||
| Total interest-bearing liabilities | 3,549,138 | 33,786 | 3.86 | 3,561,051 | 31,828 | 3.55 | 3,526,901 | 29,675 | 3.41 | ||||||||||||||||||||
| Non-interest-bearing deposits | 413,877 | 458,273 | 472,919 | ||||||||||||||||||||||||||
| Other liabilities | 14,464 | 18,432 | 27,020 | ||||||||||||||||||||||||||
| Total liabilities | 3,977,479 | 4,037,756 | 4,026,840 | ||||||||||||||||||||||||||
| Stockholders’ equity | 440,954 | 473,611 | 488,634 | ||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,418,433 | $ | 4,511,367 | $ | 4,515,474 | |||||||||||||||||||||||
| Net interest income | $ | 16,036 | $ | 20,988 | $ | 22,132 | |||||||||||||||||||||||
| Weighted average interest rate spread | 0.80 | % | 1.19 | % | 1.35 | % | |||||||||||||||||||||||
| Net interest margin (7) | 1.50 | % | 1.89 | % | 2.04 | % | |||||||||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities (8) | 122.26 | % | 124.04 | % | 124.99 | % | |||||||||||||||||||||||
| (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 (loss) on equity securities, both realized and unrealized.
| Three Months Ended March 31, | |||||||
| (In thousands, unaudited) | 2025 | 2026 | |||||
| Non-GAAP reconciliation: | |||||||
| Net Income | $ | 7,124 | $ | 2,851 | |||
| (Gain) loss on equity securities, net | (1,281 | ) | 9,920 | ||||
| Income tax expense (benefit) (1) | 282 | (2,187 | ) | ||||
| Core Net Income | $ | 6,125 | $ | 10,584 | |||
(1) The equity securities are held in a tax-advantaged subsidiary corporation. The income tax effect of the gain (loss) on equity securities, net, was calculated using the effective tax rate applicable to the subsidiary.
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 net gain (loss) on equity securities, both realized and unrealized.
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| (In thousands, unaudited) | 2025 | 2025 | 2026 | |||||||||
| Non-U.S. GAAP efficiency ratio calculation: | ||||||||||||
| Operating expenses | $ | 7,470 | $ | 7,471 | $ | 7,824 | ||||||
| Net interest income | $ | 16,036 | $ | 20,988 | $ | 22,132 | ||||||
| Other income (loss) | 1,549 | 14,033 | (9,617 | ) | ||||||||
| (Gain) loss on equity securities, net | (1,281 | ) | (13,714 | ) | 9,920 | |||||||
| Total revenue | $ | 16,304 | $ | 21,307 | $ | 22,435 | ||||||
| Efficiency ratio | 45.82 | % | 35.06 | % | 34.87 | % | ||||||
CONTACT: Patrick R. Gaughen, President and Chief Operating Officer (781) 783-1761
