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Hingham Institution for Savings has declared a special dividend for the 28th straight year.

The Hingham-based bank said in a statement last week that the special dividend of $0.63 per share would be paid in addition to its regular quarterly dividend in early January. The bank said it typically declares a special dividend in the fourth quarter. The special dividend declared in 2021 was for $0.75 per share.

Robert H. Gaughen Jr., Hingham Institution for Savings’ chairman and CEO, said in the statement that the special dividend is based on the bank’s capital requirements and the prospective return on other capital allocation options.

The bank, which has about $4 billion in assets, will also pay a regular quarterly dividend of $0.63 per share, a 3 percent increase over the dividend declared last quarter. Gaughen said the bank has paid a regular quarterly dividend in 116 straight quarters.

Gaughen added a note of caution in the statement.

“Returns on equity and assets have been modest in 2022 and should be viewed in the context of continuing significant pressure on the net interest margin as the Bank’s balance sheet adjusts to significantly higher short-term interest rates,” Gaughen said. “Such adjustments are particularly challenging for our business model. During such periods, we remain focused on careful capital allocation, defensive underwriting and disciplined 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.”

Hingham Institution for Savings Declares Special Dividend 28 Years in a Row

by Banker & Tradesman time to read: 1 min
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