In spite of recording higher profits in the second quarter, Hingham Institution for Savings felt the profit pinch in the third quarter due to higher costs of deposits outweighing interest yields on loans.
Despite a high interest rate environment making it harder for banks to turn a profit, Hingham Institution for Savings surprised stakeholders with a positive second quarter net income on repriced loans and strength in serving new clients in its focused areas according to earnings released Friday.
Hingham Institution for Savings saw deposits increase in the first quarter as it found opportunities to bring on new customers despite the national economic jitters that struck in March.
Hingham Institution for Savings saw full-year earnings fall 44 percent in 2022 as its net interest margin continued to decrease.
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.
Hingham Institution for Savings saw second quarter earnings decline 84 percent year-over-year while the bank continued to increase its quarterly dividend.
Hingham Institution for Savings saw first quarter earnings decline 27 percent as the bank reported net income of $11.86 million, or $5.54 per share basic and $5.38 per share diluted, compared to $16.35 million, or $7.65 per share basic and $7.45 per share diluted, in the first quarter of 2021.
Commercial real estate loans helped drive growth at several local banks in 2021 as the industry moved away from Paycheck Protection Program lending in the second half of 2021.
A newly-completed apartment complex in Everett’s growing multifamily development cluster has been acquired for $15 million.
Hingham Institution for Savings saw earnings increase 50 percent during the first nine months of 2021 compared to the same period last year.
Hingham Institution for Savings saw earnings increase 25 percent in the second quarter compared to the same quarter last year.
Hingham Institution for Savings continued to see its net interest margin increase in the first quarter as earnings went up more than 600 percent compared to the first quarter of 2020, when banks were responding to the start of the pandemic.
With banks seeing strong financial results and expecting those returns to continue this year, several local institutions have recently announced plans to reward shareholders and increase their quarterly dividends.
COVID-19 vaccines have started landing in the arms of Massachusetts’ first responders and nursing home residents. But for now, businesses remain cautious about expansion plans for 2021, changing the characters of some banks’ commercial loan portfolios and increasing their share of real estate loans.
Hingham Institution for Savings saw its earnings increase by 50 percent in the fourth quarter and 30 percent for the year, as the bank saw its net interest margin rise during the year.
Hingham Institution for Savings saw earnings jump in the second quarter and reported just a small percentage of loan modifications related to the coronavirus pandemic.
With banks starting to release first quarter earnings this week, early results show the potential extent of the coronavirus’ impact on both local community banks and international titans of finance.
It isn’t the largest community bank, and it isn’t racking up acquisitions, but The Hingham Institution for Savings has managed to do something incredible: It has lowered its efficiency ratio to slightly below 30 percent.
