Hingham Institution for Savings Cumulative earnings up 50%
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Hingham Institution for Savings saw its profits increase by 50% in the first nine months of 2021 compared to the same period last year.
From the start of the year through September, the Hingham-based bank made net income of $ 50.78 million, or $ 23.72 per basic share and $ 23.09 per diluted share, compared to 33 , $ 7 million or $ 15.79 per basic share and $ 15.46 per diluted share, during the first nine months of 2021.
Third quarter net income was $ 14.01 million or $ 6.54 per basic share and $ 6.36 per diluted share, compared to $ 15.2 million or $ 7.12 per share of basic and $ 6.96 per diluted share, in the third quarter of 2020.
The bank’s net income for the first nine months of 2021 included a pre-tax gain of $ 2.3 million from the sale of former branches in Weymouth and South Hingham, the bank said in a statement announcing its results. In the first nine months of 2020, the bank realized a pre-tax gain of $ 218,000 on the sale of its old branch in Scituate.
The board of directors of Hingham Institution for Savings increased its regular cash dividend to $ 0.53 per share, up 4% from the previous quarter.
While the banking industry has generally seen its net interest margins decline, the Hingham Institution for Savings has seen a positive development of this measure. The net interest margin for the third quarter was 3.48%, compared to 3.46% in the previous quarter and the third quarter of 2020. The net interest margin from the beginning of the year to September increased from 34 basis points to 3.49% compared to the same period. period last year.
The bank said it benefited from a sharp drop in the cost of interest-bearing liabilities this year, including retail and commercial deposits and wholesale funding, although the impact was less in the third quarter. The bank said it has also seen continued growth in non-interest bearing deposit balances. A decline in the yield on interest-bearing assets partially offset these benefits, the bank said, mainly due to falling interest on excess reserves held by the Federal Reserve Bank of Boston and a lower yield on loans. during the same period.
Total deposits, including wholesale deposits, increased to $ 2.416 billion in the third quarter, which the bank said represents 17% year-to-date annualized growth and 19% year-to-date growth. report for the third quarter of 2020.
Net lending rose in the third quarter to $ 2.8 billion, which the bank said represents 16% year-to-date annualized growth and 19% year-over-year growth. The bank said loan growth was concentrated in its commercial real estate portfolio.
Total assets stood at $ 3.16 billion as of September 30, compared to $ 2.86 billion at the end of December.
The bank’s already low efficiency ratio continued to improve in the third quarter, falling to 21.29% from 23.5% in the same period last year. Operating expenses as a percentage of average assets remained the same as in the previous quarter at 0.74% compared to 0.81% in the third quarter of 2020. The bank said it remained focused on reducing waste thanks to a continuous process of continuous improvement.
The bank closed another branch in Norwell last month, noting in the statement that it would explore options to maximize the long-term value of the property through sale or lease.
âReturns on equity and assets were strong in the third quarter of 2021, although such a performance should always be viewed with caution, especially when the tailwinds are blowing heavily in our favor,â said Chairman Robert H. Gaughen Jr. in the release. âWe remain focused on prudent capital allocation, defensive underwriting and disciplined cost control – the building blocks of shareholder capital mix at all stages of the business cycle. These remain constant, regardless of the macroeconomic environment in which we operate.
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