{"id":1011061,"date":"2026-10-16T16:04:18","date_gmt":"2026-10-16T20:04:18","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/hingham-reports-third-quarter-2026-results\/"},"modified":"2026-10-16T16:04:18","modified_gmt":"2026-10-16T20:04:18","slug":"hingham-reports-third-quarter-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/hingham-reports-third-quarter-2026-results\/","title":{"rendered":"Hingham Reports Third Quarter 2026 Results"},"content":{"rendered":"
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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.<\/p>\n

\n Earnings<\/strong>\n <\/p>\n

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\u2019s 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.<\/p>\n

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\u2019s 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.<\/p>\n

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\u2019s 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.<\/p>\n

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\u2019s 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.<\/p>\n

See page 11 for a reconciliation between United States Generally Accepted Accounting Principles (\u201cGAAP\u201d) 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.<\/p>\n

\n Balance Sheet <\/strong>\n <\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Growth in non-interest-bearing deposits in the third quarter of 2026 and over the last two years reflects the Bank\u2019s 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.<\/p>\n

The stability of the Bank\u2019s balance sheet, as well as full and unlimited deposit insurance through the Bank\u2019s participation in the Massachusetts Depositors Insurance Fund, continues to appeal to customers.<\/p>\n

Wholesale funds, which include Federal Home Loan Bank (\u201cFHLB\u201d) 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.<\/p>\n

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 (\u201cFRB\u201d), in addition to $366.3 million in cash and cash equivalents.<\/p>\n

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.<\/p>\n

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\u2019s 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.<\/p>\n

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.<\/p>\n

\n Operational Performance Metrics<\/strong>\n <\/p>\n

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.<\/p>\n

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\u2019s funding sources, as the Bank continued to reduce retail and commercial deposit rates and to take advantage of the inverted yield curve \u2014 over most of the last twelve months \u2014 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.<\/p>\n

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.<\/p>\n

Non-performing loans and non-performing asset activity included the following during the third quarter of 2026:<\/p>\n