Some Improvement Can Finally Be Seen In Hingham Institution for Savings

Hingham Institution for Savings remains rated Hold as asset quality and valuation concerns persist despite incremental improvements. HIFS’s commercial real estate loan concentration (83.9%) and low net interest margin continue to weigh on returns, though loan yields and deposit mix are improving. Deposit growth is modest, with non-interest-bearing deposits rising 7.8% and all deposits fully insured through the Massachusetts Depositors Insurance Fund. I am monitoring for further NIM expansion and asset quality progress; a special dividend may be forthcoming, but a buy rating is not yet justified.

This is the fourth analysis I have written about Hingham Institution for Savings ( HIFS ) in the last 10 months, and on each occasion, I have rated its stock as a Hold. Concerns with the bank’s asset quality.