21% Increase in Net Income.Business Editors HINGHAM Hingham (hĭng`əm), resort town (1990 pop. 19,821), Plymouth co., E Mass., S of Boston, on the south shore of Hingham Bay; inc. 1635. Hingham is primarily residential with some diverse light industry. Its bay shore draws annual visitors. , Mass.--(BUSINESS WIRE)--Oct. 17, 2001 HINGHAM INSTITUTION FOR SAVINGS (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on - HIFS), Hingham, Massachusetts Hingham is a town in Plymouth County on the South Shore of Massachusetts. The population was 29,882 at the 2000 census. Hingham is located 8 miles south of the Boston city limits. , announced third quarter results highlighted by continued growth in earnings driven primarily by strong growth in the balance sheet. President Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. H. Gaughen, Jr. announced that "Net income for the third quarter increased by 21% over that of the same quarter last year. This earnings trend has been driven by our ability to expand our balance sheet and at the same time, increase our net interest margin. Our total deposits and total loans have increased by 12% and 10% respectively over the last twelve months. Additionally, earnings have benefitted from an increase in our net interest margin due to a rapidly decreasing cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. . The net interest margin has increased from 3.81% for the third quarter 2000 to 3.91% for the third quarter 2001." The net income of $1,282,000, or $0.63 per share, for the third quarter represents a 21% increase over the $1,060,000, or $0.52 per share, for the third quarter of 2000. The Bank's total assets as of September September: see month. 30, 2001 of $375,618,000 represent a 15% increase over the total of $326,268,000 on September 30, 2000. Total loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. of $78,625,000 during the first nine months of 2001 contributed strongly to the $25,062,000 net increase in the size of the Bank's loan portfolio during the past year. Asset quality continued to remain strong. At the end of the third quarter of 2001, nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. totaled only 0.12% of total assets. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. Return on Average Equity and Return on Average Assets for the nine months ended September 30, 2001 were 15.93% and 1.43% respectively. Book value per share was $16.11 as of September 30, 2001, and the Bank continued to merit the Federal Deposit Insurance Corporation's highest capital rating with a tier one capital ratio of 8.88%. Hingham Institution for Savings is a Massachusetts-chartered savings bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. . Incorporated in 1834, it is the oldest financial institution headquartered in Hingham and one of the oldest in Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. . The Bank's main offices are located on Main Street,
Hingham, Massachusetts 02043, phone (781) 749-2200. The Bank also
maintains branch offices in South Hingham and the neighboring neigh·bor n. 1. One who lives near or next to another. 2. A person, place, or thing adjacent to or located near another. 3. A fellow human. 4. Used as a form of familiar address. v. towns of Cohasset Cohasset can refer to:
Hull, city (1991 pop. 60,707), SW Que., Canada, at the confluence of the Ottawa and Gatineau rivers, opposite Ottawa; inc. 1875. Hull has a hydroelectric power station. , Scituate Scituate (sĭch`  wāt, –wĭt), town (1990 pop. 16,786), Plymouth co., SE Mass., on the Atlantic coast about midway between Boston and Plymouth; settled c.1630, inc. 1636. , and Weymouth Weymouth (wā`məth), town (1990 pop. 54,063), Norfolk co., E Mass., a suburb of Boston on Hingham Bay; settled 1622, inc. 1635. The state's second oldest settlement, it is chiefly residential. .The Bank's shares of common stock are listed and traded on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol HIFS.
HINGHAM INSTITUTION FOR SAVINGS
Consolidated Balance Sheets
September 30, September 30,
2001 2000
(Unaudited) ($ in thousands except per share amounts)
ASSETS
Cash and due from banks $ 8,022 $ 5,530
Interest-bearing deposits 32,467 11,166
Cash and cash equivalents 40,489 16,696
Securities available
for sale, at fair value 40,718 41,019
Loans, net of allowance
for loan losses of
$2,452,000 in 2001
and $2,182,000 in 2000 283,302 258,240
Banking premises and
equipment, net 3,652 3,231
Accrued interest
receivable 1,930 1,961
Deferred income
tax asset, net 712 1,067
Federal Home Loan
Bank stock, at cost 4,343 3,695
Other assets 472 359
Total assets $375,618 $326,268
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $248,589 $222,690
Federal Home Loan
Bank advances 86,843 70,902
Other borrowed funds 226 146
Mortgagors' escrow accounts 1,169 1,145
Accrued interest payable 390 364
Other liabilities 5,454 2,466
Total liabilities 342,671 297,713
Commitments and
contingencies
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;
2,045,250 and 2,040,750
shares issued and
outstanding at
September 30, 2001
and 2000, respectively 2,045 2,041
Additional paid-in capital 8,857 8,809
Undivided profits 21,227 17,819
Accumulated other
comprehensive income (loss) 818 (114)
Total stockholders' equity 32,947 28,555
Total liabilities and
stockholders' equity $375,618 $326,268
Book value per share $ 16.11 $ 13.99
Return on average equity 15.93% 14.93%
HINGHAM INSTITUTION FOR SAVINGS
Consolidated Statements of Income
Three Months Ended Nine Months Ended
September 30, September 30,
(In Thousands, Except for 2001 2000 2001 2000
Per Share Amounts)
(Unaudited)
Interest and dividend income:
Loans $ 5,736 $ 5,304 $17,157 $15,235
Investment
securities 638 625 1,929 1,907
Interest-bearing
deposits 211 214 533 462
Total interest and
dividend income 6,585 6,143 19,619 17,604
Interest expense:
Deposits 2,062 2,093 6,321 5,715
Borrowed funds 1,084 1,078 3,338 3,124
Total interest
expense 3,146 3,171 9,659 8,839
Net interest income 3,439 2,972 9,960 8,765
Provision for
loan losses 60 60 180 194
Net interest income
after provision
for loan losses 3,379 2,912 9,780 8,571
Other income:
Customer service
fees on deposits 168 164 524 492
Gain on sale of
securities available
for sale and loans -- -- 136 --
Other 39 37 121 109
Total other income 207 201 781 601
Operating expenses:
Salaries and
employee benefits 936 845 2,771 2,530
Data processing 139 128 408 353
Occupancy and
equipment 178 171 544 543
Legal 1 7 11 21
Other 395 347 1,152 1,047
Total operating
expenses 1,649 1,498 4,886 4,494
Income before
income taxes 1,937 1,615 5,675 4,678
Income tax provision 655 555 1,921 1,602
Net income $ 1,282 $ 1,060 $ 3,754 $ 3,076
Cash dividends
declared per
common share $ 0.15 $ 0.14 $ 0.45 $ 0.40
Weighted average
shares outstanding
Basic 2,045 2,041 2,045 2,041
Diluted 2,073 2,055 2,070 2,053
Earnings per share
Basic $ 0.63 $ 0.52 $ 1.84 $ 1.51
Diluted $ 0.62 $ 0.52 $ 1.81 $ 1.50
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