Hingham Institution for Savings (HIFS) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $5.85M ($2.68 per share basic, $2.66/share diluted), up from $3.3M in Q3 2023; annualized ROAE was 5.52% and ROAA was 0.54% for Q3 2024.

• For the nine months ended September 30, 2024, net income was $16.82M ($7.73 per share basic, $7.67/share diluted), down from $20.1M in the same period last year; annualized ROAE was 5.35% and ROAA was 0.52%.

• Core net income for Q3 2024 was $3.2M ($1.44/share diluted), up from $2.9M in Q3 2023; for the nine months, core net income was $7.6M ($3.45/share diluted), down from $12.7M in 2023.

• Book value per share increased to $193.42, up 4% year-over-year.

Financial highlights

• Net interest income for Q3 2024 was $11.5M, up $495K year-over-year; for the nine months, it was $30.9M, down $8.0M year-over-year.

• Net interest margin for Q3 2024 was 1.07% (up 2 bps YoY); for the nine months, it was 0.96% (down 30 bps YoY).

• Total assets at September 30, 2024 were $4.45B, up 2% year-over-year.

• Total deposits grew to $2.46B, up $111.2M from December 31, 2023; retail and business deposits increased to $1.98B, up 3% year-over-year.

• FHLB borrowings were $1.53B at September 30, 2024, up 1% year-over-year.

Outlook and guidance

• Management expects conditions to improve as assets reprice higher and liabilities reprice lower, viewing the yield curve inversion as temporary.

• Focus remains on capital allocation, defensive underwriting, and disciplined cost control.

• The bank continues to exceed all minimum regulatory capital requirements.