Hingham Savings Reports Third Quarter 2025 Results

Rhea-AI Summary

Hingham Institution for Savings (NASDAQ: HIFS) reported third quarter 2025 results: Q3 net income $17.295M ($7.85 diluted), a 195.1% increase year-over-year; annualized ROAE 15.15% and ROAA 1.54%.

Total assets were $4.531B and net loans were $3.914B at September 30, 2025. Quarterly net interest margin 1.74% and efficiency ratio 38.26%. Book value per share was $211.67 (+9.4% YoY). The bank declared a regular cash dividend of $0.63 per share, payable November 12, 2025 (record November 3, 2025); this is the bank’s 127th consecutive quarterly dividend.

Credit: non-performing loans rose to 0.81% of loans, driven by a single commercial real estate nonaccrual loan with a $30.6M outstanding balance.

Positive

• Diluted EPS +195.1% year-over-year in Q3 2025
• Return on average equity 15.15% (annualized) in Q3 2025
• Total assets grew to $4.531 billion at Sept 30, 2025
• Book value per share $211.67, +9.4% year-over-year
• Declared regular dividend $0.63 per share; 127th consecutive quarter

Negative

• Non-performing loans 0.81% of loans driven by $30.6M CRE nonaccrual
• Wholesale funding of $2.032 billion at Sept 30, 2025
• Loan origination remained below the bank’s expectations in 2025

Insights

Regional Bank Analyst

Strong quarter: sharp earnings and core profitability gains driven by margin expansion and deposit mix shifts.

The bank reported net income of $17,295,000 for the quarter and core net income of $8,509,000, lifting quarterly diluted EPS to $7.85 and core diluted EPS to $3.86. Key drivers were a higher yield on loans and a lower cost of interest-bearing liabilities, which pushed the net interest margin to 1.74% and the net interest spread to 1.04%, improving profitability and book value per share to $211.67.

Outcomes depend on credit trends and funding mix: non-performing loans rose to 0.81% of loans driven by one commercial loan placed on nonaccrual, and wholesale funding usage increased to $2.032 billion to support growth. The Bank also grew non-interest-bearing deposits and maintained substantial immediate borrowing capacity and cash. Watch the Form 10-Q expected on Nov 5, 2025, the declared regular dividend of $0.63 payable Nov 12, 2025 (record Nov 3, 2025), and updates on the resolution of the $30.6 million nonaccrual commercial loan over the next 1–3 quarters for credit clarity.

HINGHAM, Mass., Oct. 10, 2025 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham, Massachusetts announced results for the quarter ended September 30, 2025.

Earnings

Net income for the quarter ended September 30, 2025 was $17,295,000 or $7.93 per share basic and $7.85 per share diluted, as compared to $5,846,000 or $2.68 per share basic and $2.66 per share diluted for the same period last year. The Bank’s annualized return on average equity for the third quarter of 2025 was 15.15%, and the annualized return on average assets was 1.54%, as compared to 5.52% and 0.54% for the same period last year. Net income per share (diluted) for the third quarter of 2025 increased by 195.1% compared to the same period in 2024.

Core net income for the quarter ended September 30, 2025, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was $8,509,000 or $3.90 per share basic and $3.86 per share diluted, as compared to $3,163,000 or $1.45 per share basic and $1.44 per share diluted for the same period last year. The Bank’s annualized core return on average equity for the third quarter of 2025 was 7.45% and the annualized core return on average assets was 0.76%, as compared to 2.99% and 0.29% for the same period last year. Core net income per share (diluted) for the third quarter of 2025 increased by 168.1% compared to the same period in 2024.

Net income for the nine months ended September 30, 2025 was $33,833,000 or $15.51 per share basic and $15.37 per share diluted, as compared to $16,816,000 or $7.73 per share basic and $7.67 per share diluted for the same period last year. The Bank’s annualized return on average equity for the first nine months of 2025 was 10.07%, and the annualized return on average assets was 1.01%, as compared to 5.35% and 0.52% for the same period in 2024. Net income per share (diluted) for the first nine months of 2025 increased by 100.4% over the same period in 2024.

Core net income for the nine months ended September 30, 2025, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was $22,087,000 or $10.13 per share basic and $10.03 per share diluted, as compared to $7,558,000 or $3.47 per share basic and $3.45 per share diluted for the same period last year. The Bank’s annualized core return on average equity for the first nine months of 2025 was 6.57%, and the annualized core return on average assets was 0.66%, as compared to 2.41% and 0.23% for the same period in 2024. Core net income per share (diluted) for the first nine months of 2025 increased by 190.7% over the same period in 2024.

See Page 10 for a reconciliation between Generally Accepted Accounting Principles (“GAAP”) net income and Non-GAAP core net income. Under GAAP, 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. In the first nine months of 2024, both net income and core net income were positively impacted by lower income tax expense driven by excess tax benefit associated with the exercise of stock options and the revision of state income tax estimates.

Balance Sheet

Total assets increased to $4.531 billion at September 30, 2025, representing 2.2% annualized growth year-to-date and a 1.8% increase from September 30, 2024.

Net loans increased to $3.914 billion at September 30, 2025, representing 1.4% annualized growth year-to-date and a 1.3% increase from September 30, 2024. Origination activity was concentrated in the Boston and Washington D.C. markets and remained focused on stabilized multifamily commercial real estate, although it remained below the Bank’s expectations given market conditions.

Retail and commercial deposits were $1.991 billion at September 30, 2025, representing a 0.4% annualized decline year-to-date and a 0.7% increase from September 30, 2024. Non-interest-bearing deposits, included in retail and commercial deposits, were $432.7 million at September 30, 2025, representing 11.8% annualized growth year-to-date and 20.8% growth from September 30, 2024.

Growth in non-interest bearing deposits in the first nine months of 2025 and over the last year continued to reflect the Bank’s focus on developing and deepening deposit relationships with new and existing commercial 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, particularly as respected competitors exit these markets or merge 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 appeal to customers in times of uncertainty.

Wholesale funds, which includes Federal Home Loan Bank (“FHLB”) borrowings, brokered deposits, and Internet listing service time deposits, were $2.032 billion at September 30, 2025 representing 2.7% annualized growth year-to-date and 0.8% growth from September 30, 2024, as the Bank used these funds to fund balance sheet growth, and to a lesser extent, replace retail and commercial deposits in 2025. In the first nine months of 2025, the Bank continued to manage its wholesale funding mix to lower its cost of funds while taking advantage of the inverted yield curve at certain durations by adding lower rate longer term liabilities. Wholesale deposits, which include brokered and Internet listing service time deposits, were $505.4 million at September 30, 2025, representing a 2.8% annualized growth year-to-date and 4.4% growth from September 30, 2024. Borrowings from the FHLB totaled $1.526 billion at September 30, 2025, representing 2.6% annualized growth from December 31, 2024, and a 0.3% decline from September 30, 2024. As of September 30, 2025, the Bank maintained an additional $843.3 million in immediately available borrowing capacity at the FHLB of Boston and the Federal Reserve Bank, in addition to $360.0 million in cash and cash equivalents.

Book value per share was $211.67 as of September 30, 2025, representing 9.2% annualized growth year-to-date and 9.4% growth from September 30, 2024. In addition to the increase in book value per share, the Bank declared $2.52 in dividends per share since September 30, 2024.

On September 24, 2025, the Bank declared a regular cash dividend of $0.63 per share. This dividend will be paid on November 12, 2025 to stockholders of record as of November 3, 2025. This will be the Bank’s 127th consecutive quarterly dividend.

The Bank has also generally declared special cash dividends in each of the last thirty years, typically in the fourth quarter, but did not declare a special dividend in 2023 or 2024. 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 and share repurchases. This may result in special dividends, if any, significantly above or below the regular quarterly dividend. All capital allocation options, including future regular and special dividends as well as share repurchases, 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, 2025 increased 8 basis points to 1.74%, as compared to 1.66% in the quarter ended June 30, 2025. This improvement was the result of a decline in the cost of interest-bearing liabilities, combined with an increase in the yield on interest-earning assets. The cost of interest-bearing liabilities fell 5 basis points in the third quarter of 2025, as the Bank’s retail and commercial deposits continued to reprice at lower rates, and the Bank continued to take advantage of the inverted yield curve by adding lower rate FHLB advances and brokered deposits. The yield on interest-earning assets increased by 4 basis points in the third quarter of 2025, driven primarily by a higher yield on loans, as the Bank continued to originate loans at higher rates and reprice existing loans. The net interest margin in the final month of the third quarter of 2025 was 1.77% annualized.

Key credit and operational metrics remained acceptable in the third quarter of 2025. At September 30, 2025, non-performing assets totaled 0.71% of total assets, compared to 0.03% at December 31, 2024 and 0.04% at September 30, 2024. Non-performing loans as a percentage of the total loan portfolio totaled 0.81% at September 30, 2025, compared to 0.04% at both December 31, 2024 and September 30, 2024. The Bank did not record any charge-offs in the first nine months of 2025 or 2024. In the second quarter of 2025, the Bank placed a commercial real estate loan with an outstanding balance of $30.6 million on nonaccrual, after the borrower failed to make the full payment due at maturity. This loan 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 is working actively to identify a resolution that protects the Bank’s interests. The remaining non-performing assets and loans cited above were and are residential, owner-occupant loans.

As of September 30, 2025, the Bank only had the single above-mentioned non-performing commercial real estate loan, and no other commercial real estate delinquent loans. The Bank did not have any delinquent or non-performing commercial real estate loans as of December 31, 2024 or September 30, 2024. The Bank did not own any foreclosed property at September 30, 2025, December 31, 2024 or September 30, 2024.

The efficiency ratio, as defined on page 5 below, decreased to 38.26% for the third quarter of 2025, as compared to 41.17% in the prior quarter and 62.19% for the same period last year. Operating expenses as a percentage of average assets fell to 0.67% for the third quarter of 2025, as compared to 0.68% for both the prior quarter and for the same period last year. As the efficiency ratio can be significantly influenced by the level of net interest income, the Bank utilizes these paired figures together to assess its operational efficiency over time. During periods of significant net interest income volatility, the efficiency ratio in isolation may over or understate the underlying operational efficiency of the Bank. The Bank remains focused on reducing waste through an ongoing process of continuous improvement and standard work that supports operational leverage.

Chairman Robert H. Gaughen Jr. stated, “Returns on equity and assets in the first nine months of 2025 remained somewhat lower than our long-term performance expectations, although they continue to improve consistently over time, driven by sustained expansion in the net interest margin through asset repricing, falling funding costs, and growth in non-interest bearing deposits. Our operational leverage remains critical to generating satisfactory returns and we remain focused on rigorous cost control and continuous operational improvement. Although our equity investment returns are likely to remain volatile in any individual period, they contribute meaningfully to growth in book value per share over time.

We continue to focus on deploying capital organically via growth in the loan portfolio, funded by a mix of retail and commercial deposits and wholesale funds. We believe there are substantial opportunities for such growth in our existing markets and we are not satisfied with our performance over the last year on this measure.

While this period has been extraordinarily challenging, 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, 2025 with the Federal Deposit Insurance Corporation (FDIC) on or about November 5, 2025.

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,
	2024			2025			2024			2025
(Unaudited)
Key Performance Ratios
Return on average assets (1)	0.54	%		1.54	%		0.52	%		1.01	%
Return on average equity (1)	5.52			15.15			5.35			10.07
Core return on average assets (1) (5)	0.29			0.76			0.23			0.66
Core return on average equity (1) (5)	2.99			7.45			2.41			6.57
Interest rate spread (1) (2)	0.34			1.04			0.24			0.93
Net interest margin (1) (3)	1.07			1.74			0.96			1.63
Operating expenses to average assets (1)	0.68			0.67			0.67			0.67
Efficiency ratio (4)	62.19			38.26			68.76			41.51
Average equity to average assets	9.82			10.14			9.65			10.06
Average interest-earning assets to average interest-bearing liabilities	120.59			123.12			120.14			122.78

	September 30, 2024				December 31, 2024				September 30, 2025
(Unaudited)
Asset Quality Ratios
Allowance for credit losses/total loans		0.69	%		0.69		%			0.71	%
Allowance for credit losses/non-performing loans		1,662.35			1,775.00					87.32
Non-performing loans/total loans		0.04			0.04					0.81
Non-performing loans/total assets		0.04			0.03					0.71
Non-performing assets/total assets		0.04			0.03					0.71
Share Related
Book value per share	$	193.42			$	198.03			$	211.67
Market value per share	$	243.31			$	254.14			$	263.78
Shares outstanding at end of period		2,180,250				2,180,250				2,181,250

(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, 2024			December 31, 2024				September 30, 2025
(Unaudited)
ASSETS
Cash and due from banks	$	7,147		$	4,183			$	6,809
Federal Reserve and other short-term investments		360,953			347,647				353,216
Cash and cash equivalents		368,100			351,830				360,025
CRA investment		9,040			8,769				9,012
Other marketable equity securities		88,604			104,575				125,098
Securities, at fair value		97,644			113,344				134,110
Securities held to maturity, at amortized cost		6,493			6,493				6,494
Federal Home Loan Bank stock, at cost		62,812			61,022				63,117
Loans, net of allowance for credit losses of $26,980 at September 30, 2024 and December 31, 2024 and $28,005 at September 30, 2025		3,863,105			3,873,662				3,913,774
Bank-owned life insurance		13,899			13,980				14,236
Premises and equipment, net		16,565			16,397				16,005
Accrued interest receivable		8,395			8,774				8,856
Other assets		12,743			12,269				14,608
Total assets	$	4,449,756		$	4,457,771			$	4,531,225

LIABILITIES AND STOCKHOLDERS’ EQUITY

Interest-bearing deposits	$	2,103,123		$	2,094,626		$	2,063,303
Non-interest-bearing deposits		358,009			397,469			432,653
Total deposits		2,461,132			2,492,095			2,495,956
Federal Home Loan Bank advances		1,530,500			1,497,000			1,526,250
Mortgagors’ escrow accounts		14,589			16,699			16,817
Accrued interest payable		11,025			8,244			14,652
Deferred income tax liability, net		1,739			3,787			7,108
Other liabilities		9,069			8,191			8,737
Total liabilities		4,028,054			4,026,016			4,069,520
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; 2,180,250 shares issued and outstanding at September 30, 2024 and December 31, 2024, and 2,181,250 shares issued and outstanding at September 30, 2025		2,180			2,180			2,181
Additional paid-in capital		15,519			15,571			15,821
Undivided profits		404,003			414,004			443,715
Accumulated other comprehensive loss		—			—			(12)
Total stockholders’ equity		421,702			431,755			461,705
Total liabilities and stockholders’ equity	$	4,449,756		$	4,457,771		$	4,531,225

HINGHAM INSTITUTION FOR SAVINGS Consolidated Statements of Income
								Three Months Ended						Nine Months Ended
								September 30,						September 30,
(In thousands, except per share amounts)									2024			2025		2024			2025
(Unaudited)
Interest and dividend income:
		Loans						$	45,035		$	47,672		$	132,820		$		139,645
		Debt securities							93			97			225				289
		Equity securities							1,532			1,401			4,533				4,217
		Federal Reserve and other short-term investments							2,802			3,739			8,374				9,866
			Total interest and dividend income						49,462			52,909			145,952				154,017
Interest expense:
		Deposits							21,371			17,663			64,658				54,125
		Federal Home Loan Bank							16,610			15,903			50,361				46,474
			Total interest expense						37,981			33,566			115,019				100,599
			Net interest income						11,481			19,343			30,933				53,418
Provision for credit losses									40			275			328				1,025
Net interest income, after provision for credit losses									11,441			19,068			30,605				52,393
Other income:
	Customer service fees on deposits								136			132			411				406
	Increase in cash surrender value of bank-owned life insurance								94			93			257				256
	Gain on equity securities, net								3,442			11,270			11,876				15,067
	Miscellaneous								52			64			156				186
			Total other income						3,724			11,559			12,700				15,915
Operating expenses:
		Salaries and employee benefits							4,237			4,501			12,768				13,360
		Occupancy and equipment							408			437			1,233				1,293
		Data processing							793			849			2,286				2,331
		Deposit insurance							743			698			2,372				2,230
		Foreclosure and related							15			39			61				63
		Marketing							141			109			417				467
		Other general and administrative							978			879			2,699				2,784
			Total operating expenses						7,315			7,512			21,836				22,528
Income before income taxes									7,850			23,115			21,469				45,780
Income tax provision									2,004			5,820			4,653				11,947
			Net income					$	5,846		$	17,295		$	16,816		$		33,833
Cash dividends declared per common share								$	0.63		$	0.63		$	1.89		$		1.89
Weighted average shares outstanding:
		Basic							2,180			2,181			2,177				2,181
		Diluted							2,197			2,204			2,192				2,202
Earnings per share:
		Basic						$	2.68		$	7.93		$	7.73		$		15.51
		Diluted						$	2.66		$	7.85		$	7.67		$		15.37

HINGHAM INSTITUTION FOR SAVINGS Net Interest Income Analysis
	Three Months Ended
	September 30, 2024									June 30, 2025											September 30, 2025
	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)	$	3,915,967		$	45,035		4.56	%		$	3,952,477			$		46,752		4.74	%		$	3,946,966			$	47,672		4.79	%
Securities (3) (4)		122,715			1,625		5.25				135,541					1,462		4.33				139,154				1,498		4.27
Short-term investments (5)		207,446			2,802		5.36				277,146					3,072		4.45				336,213				3,739		4.41
Total interest-earning assets		4,246,128			49,462		4.62				4,365,164					51,286		4.71				4,422,333				52,909		4.75
Other assets		69,148									78,230											82,490
Total assets	$	4,315,276								$	4,443,394										$	4,504,823
Liabilities and stockholders’ equity:			`
Interest-bearing deposits (6)	$	2,071,780			21,371		4.09	%		$	2,102,662					17,841		3.40	%		$	2,085,424				17,663		3.36	%
Borrowed funds		1,449,491			16,610		4.55				1,448,078					15,406		4.27				1,506,359				15,903		4.19
Total interest-bearing liabilities		3,521,271			37,981		4.28				3,550,740					33,247		3.76				3,591,783				33,566		3.71
Non-interest-bearing deposits		355,768									429,537											437,977
Other liabilities		14,577									16,378											18,463
Total liabilities		3,891,616									3,996,655											4,048,223
Stockholders’ equity		423,660									446,739											456,600
Total liabilities and stockholders’ equity	$	4,315,276								$	4,443,394										$	4,504,823
Net interest income				$	11,481									$		18,039									$	19,343
Weighted average interest rate spread							0.34	%										0.95	%									1.04	%
Net interest margin (7)							1.07	%										1.66	%									1.74	%
Average interest-earning assets to average interest-bearing liabilities (8)		120.59	%								122.94	%										123.12	%

(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,
	2024									2025
	Average Balance (9)			Interest			Yield/ Rate (10)			Average Balance (9)			Interest			Yield/ Rate (10)
(Dollars in thousands)
(Unaudited)
Loans (1) (2)	$	3,950,610		$	132,820		4.48	%		$	3,943,153		$	139,645		4.72	%
Securities (3) (4)		119,477			4,758		5.30				135,154			4,506		4.44
Short-term investments (5)		206,029			8,374		5.41				297,571			9,866		4.42
Total interest-earning assets		4,276,116			145,952		4.55				4,375,878			154,017		4.69
Other assets		66,477									79,989
Total assets	$	4,342,593								$	4,455,867
Interest-bearing deposits (6)	$	2,106,667			64,658		4.09	%		$	2,109,589			54,125		3.42	%
Borrowed funds		1,452,606			50,361		4.62				1,454,455			46,474		4.26
Total interest-bearing liabilities		3,559,273			115,019		4.30				3,564,044			100,599		3.76
Non-interest-bearing deposits		349,545									427,219
Other liabilities		14,780									16,449
Total liabilities		3,923,598									4,007,712
Stockholders’ equity		418,995									448,155
Total liabilities and stockholders’ equity	$	4,342,593								$	4,455,867
Net interest income				$	30,933								$	53,418
Weighted average interest rate spread							0.24	%								0.93	%
Net interest margin (7)							0.96	%								1.63	%
Average interest-earning assets to average interest-bearing liabilities (8)		120.14	%								122.78	%

(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

 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 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)				2024				2025			2024				2025
Non-GAAP reconciliation:
Net income			$	5,846			$	17,295			$	16,816			$		33,833
Gain on equity securities, net				(3,442	)			(11,270	)			(11,876	)				(15,067	)
Income tax expense (1)				759				2,484				2,618					3,321
Core net income			$	3,163			$	8,509			$	7,558			$		22,087

(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 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)						2024					2025					2025				2024					2025
Non-U.S. GAAP efficiency ratio calculation:
Operating expenses					$	7,315				$	7,546				$	7,512			$	21,836				$	22,528
Net interest income					$	11,481				$	18,039				$	19,343			$	30,933				$	53,418
Other income						3,724					2,807					11,559				12,700					15,915
Gain on equity securities, net						(3,442	)				(2,516	)				(11,270	)			(11,876	)				(15,067	)
Total revenue					$	11,763				$	18,330				$	19,632			$	31,757				$	54,266
Efficiency ratio						62.19		%			41.17		%			38.26		%		68.76		%			41.51		%

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

FAQ

What were HIFS Q3 2025 net income and diluted EPS?

HIFS reported Q3 2025 net income $17.295M, or $7.85 diluted EPS.

How did HIFS' returns perform in Q3 2025 (ROAE and ROAA)?

Annualized ROAE was 15.15% and ROAA was 1.54% for Q3 2025.

What is HIFS' asset and loan size at September 30, 2025?

Total assets were $4.531B and net loans were $3.914B as of Sept 30, 2025.

Did HIFS declare a dividend and when will it be paid?

Yes. A regular cash dividend of $0.63 per share was declared, payable Nov 12, 2025 to holders of record on Nov 3, 2025.

What caused the rise in HIFS non-performing loans in Q3 2025?

The rise reflected a single commercial real estate loan placed on nonaccrual with a $30.6M outstanding balance.

How did HIFS' net interest margin and efficiency ratio look in Q3 2025?

Net interest margin was 1.74% and the efficiency ratio was 38.26% for Q3 2025.

Is HIFS using wholesale funding and how large is it?

Yes. Wholesale funds totaled $2.032B at September 30, 2025, used to fund growth and supplement deposits.