Hingham Institution for Savings (HIFS) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $4.1M ($1.88/share), down from $8.2M ($3.84/share) in Q2 2023; six-month net income was $11.0M ($5.04/share), down from $16.8M ($7.80/share) year-over-year.

• Core net income for Q2 2024 was $2.2M ($1.00/share), down from $4.0M ($1.88/share) in Q2 2023; six-month core net income was $4.4M ($2.01/share diluted), down 55% year-over-year.

• Returns on equity and assets declined significantly due to higher short-term rates and a prolonged inverted yield curve.

Financial highlights

• Net interest income for Q2 2024 was $10.4M, down $2.7M year-over-year; six-month net interest income was $19.5M, down $8.5M.

• Net interest margin for Q2 2024 was 0.96% (Q2 2023: 1.28%), up from 0.85% in Q1 2024; for six months, 0.91% (2023: 1.37%).

• Total assets grew to $4.52B at June 30, 2024, up $36.8M from December 31, 2023, and 5% year-over-year.

• Net loans increased by $19.2M year-to-date to $3.93B; total deposits rose to $2.418B, a 6% annualized increase.

• Book value per share increased to $191.34 at June 30, 2024 (Dec 31, 2023: $188.50), up 3% annualized year-to-date.

Outlook and guidance

• Management expects challenges from the inverted yield curve to fade as assets reprice in 2024.

• Focus remains on deposit growth, operational efficiency, capital allocation, and credit quality.

• The bank is managing its wholesale funding mix to mitigate the impact of elevated short-term rates.

• No material changes to previously disclosed risk factors; no significant legal proceedings.