{"id":982560,"date":"2026-07-17T16:04:06","date_gmt":"2026-07-17T20:04:06","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/hingham-reports-second-quarter-2026-results\/"},"modified":"2026-07-17T16:04:06","modified_gmt":"2026-07-17T20:04:06","slug":"hingham-reports-second-quarter-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/hingham-reports-second-quarter-2026-results\/","title":{"rendered":"Hingham Reports Second Quarter 2026 Results"},"content":{"rendered":"
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HINGHAM, Mass., July 17, 2026 (GLOBE NEWSWIRE) — HINGHAM INSTITUTION FOR SAVINGS (NASDAQ: HIFS), Hingham, Massachusetts announced results for the quarter ended June 30, 2026.<\/p>\n

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

Net income for the quarter ended June 30, 2026 was $25,443,000 or $11.59 per share basic and $11.49 per share diluted, as compared to $9,414,000 or $4.32 per share basic and $4.28 per share diluted for the same period last year. The Bank\u2019s annualized return on average equity for the second quarter of 2026 was 20.38%, and the annualized return on average assets was 2.25%, as compared to 8.43% and 0.85% for the same period last year. Net income per share (diluted) for the second quarter of 2026 increased by 168.5% compared to the same period in 2025.<\/p>\n

Core net income for the quarter ended June 30, 2026, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was $10,668,000 or $4.86 per share basic and $4.82 per share diluted, as compared to $7,453,000 or $3.42 per share basic and $3.39 per share diluted for the same period last year. The Bank\u2019s annualized core return on average equity for the second quarter of 2026 was 8.55% and the annualized core return on average assets was 0.94%, as compared to 6.67% and 0.67% for the same period last year. Core net income per share (diluted) for the second quarter of 2026 increased by 42.2% compared to the same period in 2025.<\/p>\n

Net income for the six months ended June 30, 2026 was $28,294,000 or $12.92 per share basic and $12.80 per share diluted, as compared to $16,538,000 or $7.58 per share basic and $7.52 per share diluted for the same period last year. The Bank\u2019s annualized return on average equity for the first six months of 2026 was 11.45%, and the annualized return on average assets was 1.25%, as compared to 7.45% and 0.75% for the same period in 2025. Net income per share (diluted) for the first six months of 2026 increased by 70.2% over the same period in 2025.<\/p>\n

Core net income for the six months ended June 30, 2026, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was $21,252,000 or $9.70 per share basic and $9.61 per share diluted, as compared to $13,578,000 or $6.23 per share basic and $6.17 per share diluted for the same period last year. The Bank\u2019s annualized core return on average equity for the first six months of 2026 was 8.60%, and the annualized core return on average assets was 0.94%, as compared to 6.12% and 0.61% for the same period in 2025. Core net income per share (diluted) for the first six months of 2026 increased by 55.8% 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 $4.557 billion at June 30, 2026, representing 0.6% annualized growth year-to-date and a 0.4% increase from June 30, 2025.<\/p>\n

Net loans increased to $3.904 billion at June 30, 2026, representing 0.3% annualized growth year-to-date and a 0.7% decline from June 30, 2025.<\/p>\n

Retail and commercial deposits were $2.084 billion at June 30, 2026, representing 2.7% annualized growth year-to-date and a 4.3% increase from June 30, 2025.<\/p>\n

Non-interest-bearing deposits, included in retail and commercial deposits, were $504.2 million at June 30, 2026, representing 15.6% annualized growth year-to-date and 15.2% growth from June 30, 2025.<\/p>\n

Growth in non-interest bearing deposits in the second 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, 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.<\/p>\n

Wholesale funds, which includes Federal Home Loan Bank (\u201cFHLB\u201d) borrowings, brokered deposits, and Internet listing service time deposits, were $1.915 billion at June 30, 2026, representing a 4.2% annualized decline year-to-date and a 6.7% decline from June 30, 2025, as the Bank replaced these funds with retail and commercial deposits over the last year.<\/p>\n

In the first six months of 2026, the Bank continued to manage its wholesale funding mix to lower its cost of funds while continuing to replace maturing longer term liabilities. Wholesale deposits, which include brokered and Internet listing service time deposits, were $509.5 million at June 30, 2026, representing 6.9% annualized growth year-to-date and 6.1% growth from June 30, 2025. Borrowings from the FHLB totaled $1.405 billion at June 30, 2026, representing a 8.0% annualized decline from December 31, 2025, and a 10.6% decline from June 30, 2025. As of June 30, 2026, the Bank maintained an additional $990.6 million in immediately available borrowing capacity at the FHLB of Boston and the Federal Reserve Bank (\u201cFRB\u201d), in addition to $355.2 million in cash and cash equivalents.<\/p>\n

Book value per share was $230.83 as of June 30, 2026, representing 10.0% annualized growth year-to-date and 13.0% growth from June 30, 2025. In addition to the increase in book value per share, the Bank has declared $3.22 in dividends per share since June 30, 2025.<\/p>\n

On June 24, 2026, the Bank declared a regular cash dividend of 0.63 per share. This dividend will be paid on August 12, 2026 to stockholders of record as of August 3, 2026. This will be the Bank\u2019s 130th 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 June 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 June 30, 2026 increased 10 basis points to 2.14%, as compared to 2.04% in the quarter ended March 31, 2026. This improvement was the result of growth in non-interest bearing deposits and 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 five basis points in the second quarter of 2026, as the Bank\u2019s retail and commercial time deposits repriced to lower rates. The yield on interest-earning assets increased by two basis points in the second quarter of 2026, driven primarily by a higher yield on loans, as the Bank continued to originate and reprice existing adjustable loans at higher rates, partially offset by a lower dividend on FHLB stock.<\/p>\n

The net interest margin for the quarter ended June 30, 2026 increased 48 basis points to 2.14%, as compared to 1.66% 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 – over most of the last twelve months – 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 and dividend on FHLB stock.<\/p>\n

Key credit and operational metrics remained acceptable in the second quarter of 2026. At June 30, 2026, non-performing assets, which included three loans secured by real estate and eight properties held in foreclosed assets, totaled 0.78% of total assets, compared to 0.69% at December 31, 2025 and 0.70% at June 30, 2025. Non-performing loans as a percentage of the total loan portfolio totaled 0.78% at June 30, 2026, compared to 0.80% at December 31, 2025 and 0.81% at June 30, 2025. The Bank did not record any charge-offs in the first six months of 2026 or 2025.<\/p>\n

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