HINGHAM, Mass., Jan. 16, 2026 (GLOBE NEWSWIRE) -- HINGHAM INSTITUTION FOR SAVINGS $(HIFS)$, Hingham, Massachusetts announced earnings for the fourth quarter and the year ended December 31, 2025.
Earnings
Net income for the year ended December 31, 2025 was $54,551,000 or $25.01 per share basic and $24.76 per share diluted, as compared to $28,191,000 or $12.95 per share basic and $12.85 per share diluted for the same period last year. The Bank's return on average equity for the year ended December 31, 2025 was 12.00%, and the return on average assets was 1.22%, as compared to 6.68% and 0.65% for the same period in 2024. Net income per share (diluted) for 2025 increased by 92.7% over 2024.
Core net income, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was $32,114,000 or $14.72 per share basic and $14.58 per share diluted for the year ended December 31, 2025, as compared to $12,304,000 or $5.65 per share basic and $5.61 per share diluted for the same period last year. The Bank's core return on average equity for the year ended December 31, 2025 was 7.06%, and the core return on average assets was 0.72%, as compared to 2.92% and 0.28% for the same period in 2024. Core net income per share (diluted) for 2025 increased by 159.9% over 2024.
Net income for the quarter ended December 31, 2025 was $20,718,000 or $9.49 per share basic and $9.39 per share diluted, as compared to $11,375,000 or $5.22 per share basic and $5.16 per share diluted for the same period last year. The Bank's annualized return on average equity for the fourth quarter of 2025 was 17.50%, and the annualized return on average assets was 1.84%, as compared to 10.58% and 1.04% for the same period in 2024. Net income per share (diluted) for the fourth quarter of 2025 increased by 82.0% over 2024.
Core net income, which represents net income excluding the after-tax net gain on equity securities, both realized and unrealized, was $10,027,000 or $4.60 per share basic and $4.54 per share diluted for the quarter ended December 31, 2025, as compared to $4,753,000 or $2.18 per share basic and $2.16 per share diluted for the same period last year. The Bank's annualized core return on average equity for the fourth quarter of 2025 was 8.47%, and the annualized core return on average assets was 0.89%, as compared to 4.42% and 0.43% for the same period in 2024. Core net income per share (diluted) for the fourth quarter of 2025 increased by 110.2% over 2024.
See Page 10 for a reconciliation between Generally Accepted Accounting Principles ("GAAP") 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.
Balance Sheet
Total assets increased to $4.543 billion at December 31, 2025, representing a 1.9% growth from December 31, 2024.
Net loans increased to $3.899 billion at December 31, 2025, representing a 0.7% growth from December 31, 2024.
Retail and commercial deposits were $2.056 billion at December 31, 2025, representing a 2.9% growth from December 31, 2024. Non-interest-bearing deposits, included in retail and commercial deposits, were $467.7 million at December 31, 2025, representing a 17.7% growth from December 31, 2024.
Growth in non-interest bearing deposits in 2025 reflected the Bank's 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, 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 include Federal Home Loan Bank ("FHLB") borrowings, brokered deposits, and Internet listing service deposits, were $1.956 billion at December 31, 2025, a 1.8% decline from December 31, 2024, as the Bank replaced a portion of these funds with retail and commercial deposits. In 2025, 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 $492.4 million at December 31, 2025, representing a 0.5% decline from December 31, 2024. Borrowings from the FHLB totaled $1.464 billion at December 31, 2025, a 2.2% decline from December 31, 2024. As of December 31, 2025, the Bank maintained an additional $934.5 million in immediately available borrowing capacity at the FHLB of Boston and the Federal Reserve Bank ("FRB"), in addition to $369.6 million in cash and cash equivalents.
Book value per share was $219.82 as of December 31, 2025, representing an 11.0% growth from December 31, 2024. In addition to the increase in book value per share, the Bank declared $3.22 in dividends per share since December 31, 2024, including a $0.70 per share special dividend declared in the fourth quarter of 2025. In December 2025, the Bank received regulatory approval for the repurchase of up to $20.0 million of common equity. All capital allocation options, including future regular and special dividends as well as share repurchases, will be considered by the Board of Directors in light of prospective relative returns. The trailing five year compound annual growth rate in book value per share, an important measure of long-term value creation, was 9.9% at December 31, 2025.
Operational Performance Metrics
The net interest margin for the quarter ended December 31, 2025 increased 15 basis points to 1.89%, as compared to 1.74% in the quarter ended September 30, 2025. This improvement was the result of a decline in the cost of interest-bearing liabilities. The cost of interest-bearing liabilities fell 16 basis points in the fourth 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 rolling over maturing FHLB advances and brokered deposits at lower rates. The yield on interest-earning assets fell by one basis point in the fourth quarter of 2025, driven primarily by a lower rate on cash held at the FRB, almost completely offset 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 fourth quarter of 2025 was 1.96% annualized.
Key credit and operational metrics remained acceptable in the fourth quarter of 2025. At December 31, 2025 non-performing assets, which included two loans secured by real estate, totaled 0.69% of total assets, compared to 0.03% at December 31, 2024. The Bank did not record any charge-offs during the years ended December 31, 2025 and December 31, 2024. In 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 continues to work actively to identify a resolution that protects the Bank's interests. The other non-performing loan was a home equity line of credit.
The Bank did not own any foreclosed property on December 31, 2025 or December 31, 2024.
The efficiency ratio, as defined on page 10, fell to 35.06% for the fourth quarter of 2025, as compared to 38.26% in the prior quarter and 52.30% for the same period last year. Operating expenses as a percentage of average assets were 0.66% for the fourth quarter of 2025, as compared to 0.67% for the prior quarter, and 0.66% 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, "Our return on average equity of 12.00% and return on average assets of 1.22% in 2025 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. These remain somewhat below our long-term performance and our expectations for the business. 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, 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.
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 annual financial results are summarized in the earnings release, but shareholders are encouraged to read the Bank's annual report on Form 10-K, which is generally available several weeks after the earnings release. The Bank expects to file Form 10-K for the year ended December 31, 2025 with the Federal Deposit Insurance Corporation (FDIC) on or about March 4, 2026.
The Bank expects to hold its Annual Meeting of Shareholders in Hingham, Massachusetts on Thursday, April 30, 2026 in the afternoon. Additional information will follow in the Bank's Proxy Statement later in the first quarter of 2026.
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 Twelve Months Ended
December 31, December 31,
------------------------ -------------------------
2024 2025 2024 2025
------------ ---------- ------------ -----------
(Unaudited)
Key Performance
Ratios
Return on average
assets (1) 1.04% 1.84% 0.65% 1.22%
Return on average
equity (1) 10.58 17.50 6.68 12.00
Core return on
average assets (1)
(5) 0.43 0.89 0.28 0.72
Core return on
average equity (1)
(5) 4.42 8.47 2.92 7.06
Interest rate
spread (1) (2) 0.53 1.19 0.31 1.00
Net interest margin
(1) (3) 1.24 1.89 1.04 1.70
Operating expenses
to average assets
(1) 0.66 0.66 0.67 0.67
Efficiency ratio
(4) 52.30 35.06 63.79 39.70
Average equity to
average assets 9.82 10.50 9.69 10.17
Average
interest-earning
assets to average
interest-bearing
liabilities 120.97 124.04 120.35 123.10
December 31, 2024 December 31, 2025
--------------------- ---------------------
(Unaudited)
Asset Quality Ratios
Allowance for credit
losses/total loans 0.69% 0.73%
Allowance for credit
losses/non-performing loans 1,775.00 91.46
Non-performing loans/total
loans 0.04 0.80
Non-performing loans/total
assets 0.03 0.69
Non-performing assets/total
assets 0.03 0.69
Share Related
Book value per share $ 198.03 $ 219.82
Market value per share $ 254.14 $ 283.96
Shares outstanding at end of
period 2,180,250 2,182,250
(1) Annualized for the three months ended December 31, 2024 and 2025.
(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
December 31, December 31,
(In thousands, except share amounts) 2024 2025
-------------- ----------------
(Unaudited)
ASSETS
Cash and due from banks $ 4,183 $ 6,683
Federal Reserve and other short-term
investments 347,647 362,925
---------- ----------
Cash and cash equivalents 351,830 369,608
CRA investment 8,769 9,050
Other marketable equity securities 104,575 141,294
---------- ----------
Securities, at fair value 113,344 150,344
Securities held to maturity, at
amortized cost 6,493 7,499
Federal Home Loan Bank stock, at cost 61,022 61,987
Loans, net of allowance for credit
losses of $26,980 at December 31,
2024 and $28,555 at December 31,
2025 3,873,662 3,899,008
Bank-owned life insurance 13,980 14,318
Premises and equipment, net 16,397 15,911
Accrued interest receivable 8,774 9,213
Other assets 12,269 14,766
---------- ----------
Total assets $ 4,457,771 $ 4,542,654
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits $2,094,626 $2,080,661
Non-interest-bearing deposits 397,469 467,656
--------- ---------
Total deposits 2,492,095 2,548,317
Federal Home Loan Bank advances 1,497,000 1,463,815
Mortgagors' escrow accounts 16,699 18,427
Accrued interest payable 8,244 11,831
Deferred income tax liability, net 3,787 9,495
Other liabilities 8,191 11,061
--------- ---------
Total liabilities 4,026,016 4,062,946
--------- ---------
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
December 31, 2024 and 2,182,250 shares
issued and outstanding at December 31,
2025 2,180 2,182
Additional paid-in capital 15,571 16,004
Undivided profits 414,004 461,530
Accumulated other comprehensive loss -- (8)
Total stockholders' equity 431,755 479,708
--------- ---------
Total liabilities and stockholders'
equity $4,457,771 $4,542,654
--------- ---------
HINGHAM INSTITUTION FOR SAVINGS
Consolidated Statements of Net Income
Three Months
Ended Twelve Months Ended
December 31, December 31,
---------------- --------------------
(In thousands, except
per share amounts) 2024 2025 2024 2025
------- ------- -------- ----------
(Unaudited)
Interest and dividend
income:
Loans $44,787 $47,707 $177,607 $187,352
Debt securities 100 103 325 392
Equity
securities 1,542 1,539 6,075 5,756
Federal Reserve
and other
short-term
investments 3,515 3,467 11,889 13,333
------- -------
Total interest
and dividend
income 49,944 52,816 195,896 206,833
------- -------
Interest expense:
Deposits 20,518 16,454 85,176 70,579
Federal Home
Loan Bank and
Federal Reserve
Bank advances 15,985 15,374 66,346 61,848
------ ------ ------- -------
Total interest
expense 36,503 31,828 151,522 132,427
------- -------
Net interest
income 13,441 20,988 44,374 74,406
Provision for credit
losses -- 550 328 1,575
------ ------ ------- -------
Net interest income,
after provision for
credit losses 13,441 20,438 44,046 72,831
------ ------ ------- -------
Other income:
Customer service fees
on deposits 135 175 546 581
Increase in cash
surrender value of
bank-owned life
insurance 81 82 338 338
Gain on equity
securities, net 8,503 13,714 20,379 28,781
Miscellaneous 60 62 216 248
------- -------
Total other
income 8,779 14,033 21,479 29,948
Operating expenses:
Salaries and
employee
benefits 4,142 4,431 16,910 17,791
Occupancy and
equipment 426 452 1,659 1,745
Data processing 740 818 3,026 3,149
Deposit
insurance 724 614 3,096 2,844
Foreclosure and
related 10 3 71 66
Marketing 153 155 570 622
Other general
and
administrative 979 998 3,678 3,782
------- -------
Total operating
expenses 7,174 7,471 29,010 29,999
------- -------
Income before income
taxes 15,046 27,000 36,515 72,780
Income tax provision 3,671 6,282 8,324 18,229
------- -------
Net income $11,375 $20,718 $ 28,191 $ 54,551
------- -------
Cash dividends
declared per share $ 0.63 $ 1.33 $ 2.52 $ 3.22
------ ------ ------- -------
Weighted average
shares outstanding:
Basic 2,180 2,182 2,177 2,181
------ ------ ------- -------
Diluted 2,202 2,207 2,194 2,203
------ ------ ------- -------
Earnings per share:
Basic $ 5.22 $ 9.49 $ 12.95 $ 25.01
------ ------ ------- -------
Diluted $ 5.16 $ 9.39 $ 12.85 $ 24.76
------ ------ ------- -------
HINGHAM INSTITUTION FOR SAVINGS
Net Interest Income Analysis
Three Months Ended
--------------------------------------------------------------------------------------------------------------
December 31, 2024 September 30, 2025 December 31, 2025
------------------------------------- ------------------------------------ ---------------------------------
Average Yield/ Average Yield/ Average Yield/
Balance Rate Balance Rate Balance Rate
(9) Interest (10) (9) Interest (10) (9) Interest (10)
---------- ---------- --------- ---------- ---------- -------- ---------- ----------- --------
(Dollars in thousands)
(Unaudited)
Assets
Loans (1) (2) $3,882,297 $ 44,787 4.58% $3,946,966 $ 47,672 4.79 % $3,928,951 $47,707 4.82%
Securities (3) (4) 126,771 1.642 5.14 139,154 1,498 4.27 139,905 1,642 4.66
Short-term investments
(5) 293,987 3,515 4.74 336,213 3,739 4.41 348,254 3,467 3.95
--------- ------ ---- --------- ------ ---- --------- ------ ----
Total
interest-earning
assets 4,303,055 49,944 4.60 4,422,333 52,909 4.75 4,417,110 52,816 4.74
------
Other assets 72,638 82,490 94,257
--------- --------- ---------
Total assets $4,375,693 $4,504,823 $4,511,367
--------- --------- ---------
Liabilities and
stockholders' equity:
Interest-bearing
deposits (6) $2,136,101 $ 20,518 3.81% $2,085,424 $ 17,663 3.36 % $2,069,647 $16,454 3.15%
Borrowed funds 1,421,152 15,985 4.46 1,506,359 15,903 4.19 1,491,404 15,374 4.09
--------- ------ ---- --------- ------ ---- --------- ------ ----
Total
interest-bearing
liabilities 3,557,253 36,503 4.07 3,591,783 33,566 3.71 3,561,051 31,828 3.55
------ ---- ------ ---- ------ ----
Non-interest-bearing
deposits 374,461 437,977 458,273
Other liabilities 14,072 18,463 18,432
--------- --------- ---------
Total liabilities 3,945,786 4,048,223 4,037,756
Stockholders' equity 429,907 456,600 473,611
--------- --------- ---------
Total liabilities and
stockholders' equity $4,375,693 $4,504,823 $4,511,367
--------- --------- ---------
Net interest income $ 13,441 $ 19,343 $20,988
------ ------
Weighted average
interest rate spread 0.53% 1.04 % 1.19%
---- ---- ----
Net interest margin (7) 1.24% 1.74 % 1.89%
---- ---- ----
Average
interest-earning
assets to average
interest-bearing
liabilities (8) 120.97% 123.12 % 124.04 %
--------- --------- ---------
(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
Twelve Months Ended December 31,
----------------------------------------------------------------------
2024 2025
-------------------------------- --------------------------------
Average Average
Balance Yield/ Balance Yield/
(9) Interest Rate (9) Interest Rate
---------- -------- ------ ---------- -------- ------
(Dollars in thousands)
(Unaudited)
Loans (1) (2) $3,933,439 $177,607 4.52% $3,939,574 $187,352 4.76%
Securities (3) (4) 121,311 6,400 5.28 136,351 6,148 4.51
Short-term investments
(5) 228,138 11,889 5.21 310,346 13,333 4.30
--------- ------- ------ --------- ------- ------
Total
interest-earning
assets 4,282,888 195,896 4.57 4,386,271 206,833 4.72
------- ------ ------- ------
Other assets 68,025 83,585
--------- ---------
Total assets $4,350,913 $4,469,856
--------- ---------
Interest-bearing
deposits (6) $2,114,066 $ 85,176 4.03% $2,099,521 $ 70,579 3.36%
Borrowed funds 1,444,700 66,346 4.59 1,463,768 61,848 4.23
--------- ------- ------ --------- ------- ------
Total
interest-bearing
liabilities 3,558,766 151,522 4.26 3,563,289 132,427 3.72
------- ------ ------- ------
Non-interest-bearing
deposits 355,808 435,046
Other liabilities 14,601 16,950
--------- ---------
Total liabilities 3,929,175 4,015,285
Stockholders' equity 421,738 454,571
--------- ---------
Total liabilities and
stockholders'
equity $4,350,913 $4,469,856
--------- ---------
Net interest income $ 44,374 $ 74,406
------- -------
Weighted average
interest rate spread 0.31% 1.00%
------ ------
Net interest margin (7) 1.04% 1.70%
------ ------
Average
interest-earning
assets to average
interest-bearing
liabilities (8) 120.35% 123.10%
--------- ---------
(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.
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 Twelve Months Ended
December 31, December 31,
------------------- ----------------------
(In thousands,
unaudited) 2024 2025 2024 2025
-------- --------- --------- -----------
Non-GAAP
reconciliation:
Net income $11,375 $ 20,718 $ 28,191 $ 54,551
Gain on equity
securities,
net (8,503) (13,714) (20,379) (28,781)
Income tax
expense (1) 1,881 3,023 4,492 6,344
------- ------- -------
Core net income $ 4,753 $ 10,027 $ 12,304 $ 32,114
------ ------- ------- -------
(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 Twelve Months Ended
December
December 31, September 30, 31, December 31,
------------------------
(In thousands,
unaudited) 2024 2025 2025 2024 2025
------------ ------------- --------- ------------- ---------
Non-U.S. GAAP
efficiency
ratio
calculation:
Operating
expenses $ 7,174 $ 7,512 $ 7,471 $ 29,010 $ 29,999
Net interest
income $13,441 $ 19,343 $ 20,988 $ 44,374 $ 74,406
Other income 8,779 11,559 14,033 21,479 29,948
Gain on
equity
securities,
net (8,503) (11,270) (13,714) (20,379) (28,781)
------- ------- ------- -------
Total revenue $13,717 $ 19,632 $ 21,307 $ 45,474 $ 75,573
------ ------- ------- ------- -------
Efficiency
ratio 52.30 % 38.26 % 35.06 % 63.79 % 39.70 %
------ ------- ------- ------- -------
CONTACT: Patrick R. Gaughen, President and Chief Operating Officer (781) 783-1761
(END) Dow Jones Newswires
January 16, 2026 16:01 ET (21:01 GMT)
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