{"id":952597,"date":"2026-04-17T16:06:19","date_gmt":"2026-04-17T20:06:19","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/hingham-savings-reports-first-quarter-2026-results\/"},"modified":"2026-04-17T16:06:19","modified_gmt":"2026-04-17T20:06:19","slug":"hingham-savings-reports-first-quarter-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/hingham-savings-reports-first-quarter-2026-results\/","title":{"rendered":"Hingham Savings Reports First Quarter 2026 Results"},"content":{"rendered":"
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HINGHAM, Mass., April 17, 2026 (GLOBE NEWSWIRE) — HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham, Massachusetts announced earnings for the quarter ended March 31, 2026.<\/p>\n

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

Net income for the quarter ended March 31, 2026 was $2,851,000 or $1.30 per share basic and $1.29 per share diluted, as compared to $7,124,000 or $3.27 per share basic and $3.24 per share diluted for the same period last year. The Bank\u2019s annualized return on average equity for the first quarter of 2026 was 2.33%, and the annualized return on average assets was 0.25%, as compared to 6.46% and 0.64% for the same period in last year. Net income per share (diluted) for the first quarter of 2026 decreased by 60.2% compared to the same period in 2025.<\/p>\n

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 $10,584,000 or $4.84 per share basic and $4.79 per share diluted, as compared to $6,125,000 or $2.81 per share basic and $2.78 per share diluted for the same period last year. The Bank\u2019s annualized core return on average equity for the first quarter of 2026 was 8.66%, and the annualized core return on average assets was 0.94%, as compared to 5.56% and 0.55% for the same period last year. Core net income per share (diluted) for the first quarter of 2026 increased by 72.3% compared to the same period in 2025.<\/p>\n

See Page 10 for a reconciliation between 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 $4.548 billion at March 31, 2026, representing 0.5% annualized growth year-to-date and 0.5% growth from March 31, 2025.<\/p>\n

Net loans decreased to $3.896 billion at March 31, 2026, representing a 0.3% annualized decline year-to-date and a 0.7% decline from March 31, 2025.<\/p>\n

Retail and commercial deposits increased to $2.104 billion at March 31, 2026, representing 9.3% annualized growth year-to-date and 1.8% growth from March 31, 2025.<\/p>\n

Non-interest-bearing deposits, included in retail and commercial deposits, were $513.6 million at March 31, 2026, representing 39.3% annualized growth year-to-date and 20.2% growth from March 31, 2025.<\/p>\n

Growth in non-interest bearing deposits in the first quarter of 2026 and over the last two years reflected 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, and San Francisco.<\/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 in times of uncertainty.<\/p>\n

Wholesale funds, which include Federal Home Loan Bank (\u201cFHLB\u201d) borrowings, brokered deposits, and Internet listing service deposits, were $1.913 billion at March 31, 2026, representing a 8.9% annualized decline year-to-date and a 3.3% decline from March 31, 2025, as the Bank replaced a portion of these funds with retail and commercial deposits.<\/p>\n

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 $499.2 million at March 31, 2026, representing 5.6% annualized growth year-to-date and a 1.6% decline from March 31, 2025. Borrowings from the FHLB totaled $1.414 billion at March 31, 2026, representing a 13.7% annualized decline from December 31, 2025, and a 3.9% decline from March 31, 2025. As of March 31, 2026, the Bank maintained an additional $999.1 million in immediately available borrowing capacity at the FHLB of Boston and the Federal Reserve Bank (\u201cFRB\u201d), in addition to $386.8 million in cash and cash equivalents.<\/p>\n

Book value per share was $220.06 as of March 31, 2026, representing 0.4% annualized growth year-to-date and 9.7% growth from March 31, 2025. In addition to the increase in book value per share, the Bank declared $3.22 in dividends per share since March 31, 2025, including a $0.70 per share special dividend declared in the fourth quarter of 2025.<\/p>\n

On March 25, 2026, the Bank declared a regular cash dividend of $0.63 per share. This dividend will be paid on May 13, 2026 to stockholders of record as of May 4, 2026. This will be the Bank\u2019s 129th 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 repurchase 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. As of December 31, 2025 and March 31, 2026, no shares had been repurchased under this program and the Bank is under no obligation to repurchase shares at all. This may also 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 March 31, 2026 increased 15 basis points to 2.04%, as compared to 1.89% in the quarter ended December 31, 2025. This improvement was the result of growth in non-interest bearing deposits, a decline in the cost of interest-bearing liabilities, and to a lesser extent, an increase in the yield on interest-earning assets. The cost of interest-bearing liabilities fell 14 basis points in the first quarter of 2026, as the Bank\u2019s retail and commercial deposits continued to reprice at lower rates, and the Bank continued to take advantage of the inverted yield curve by rolling over maturing FHLB advances and brokered deposits at lower rates. The yield on interest-earning assets increased by three basis points in the first quarter of 2026, driven primarily by a higher yield on loans, as the Bank continued to originate loans at higher rates, partially offset by a lower rate on cash held at the FRB.<\/p>\n

The net interest margin for the quarter ended March 31, 2026 increased 54 basis points as compared to 1.50% 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 by adding lower rate FHLB advances and brokered deposits. During this period, the yield on interest-earning assets increased, driven primarily by an increase in the yield on loans, partially offset by lower yield on cash held at the FRB.<\/p>\n

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 0.87% of total assets, compared to 0.69% at December 31, 2025 and 0.04% at March 31, 2025. Non-performing loans as a percentage of the total loan portfolio totaled 0.97% at March 31, 2026, compared to 0.80% at December 31, 2025 and 0.05% at March 31, 2025. The Bank did not record any charge-offs in the first three months of 2026 or 2025.<\/p>\n

Non-performing loans and non-performing assets included the following at December 31, 2025 and March 31, 2026:<\/p>\n