Hingham Institution for Savings (HIFS) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $7.12 million ($3.27 basic EPS, $3.24 diluted EPS), up from $6.9 million ($3.17 basic EPS) in Q1 2024; core net income (excluding equity securities gains) was $6.13 million ($2.81 basic EPS, $2.78 diluted EPS), up 175.2% year-over-year.

• Annualized return on average equity was 6.46% and return on average assets was 0.64% for Q1 2025.

• Book value per share rose to $200.69 at March 31, 2025, up from $198.03 at year-end 2024 and 5.6% year-over-year.

• Net interest margin expanded to 1.50%, up 65 bps year-over-year and 26 bps sequentially.

Financial highlights

• Net interest income increased to $16.0 million in Q1 2025 from $9.1 million in Q1 2024, driven by a 65 bps increase in net interest margin to 1.50%.

• Total assets grew to $4.52 billion, up $65.7 million from year-end 2024, a 5.9% annualized increase YTD but a 0.1% decrease year-over-year.

• Net loans reached $3.92 billion, up 5.2% annualized YTD, down 0.4% year-over-year.

• Total deposits reached $2.57 billion, up $81.3 million from December 2024; retail and commercial deposits grew 13.8% annualized YTD and 9.2% year-over-year to $2.07 billion.

• Non-interest-bearing deposits rose 30% annualized YTD and 23% year-over-year to $427.3 million.

• Wholesale funds declined 2.8% annualized YTD and 9.5% year-over-year to $1.98 billion.

• Allowance for credit losses was $27.3 million (0.69% of loans), with non-performing assets at 0.04% of total assets and non-performing loans at 0.05% of total loans.

• Efficiency ratio improved to 45.82% from 77.24% year-over-year.

Outlook and guidance

• Management is cautiously optimistic as net interest margin accelerates and core business returns improve, focusing on deposit growth, operational efficiency, and credit quality.

• The bank remains above all regulatory capital requirements and is actively managing its funding mix to optimize cost and liquidity.

• Focus remains on capital allocation, defensive underwriting, and cost control to compound shareholder capital.