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Hingham Institution for Savings

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FY2012 Annual Report · Hingham Institution for Savings
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13-2462 HIS Cov_Layout 1  3/19/13  11:35 AM  Page 1

HULL
        401 Nantasket Avenue
        Hull, MA 02045

NANTUCKET
        35 Main Street
        Nantucket MA 02554
        Coming in Summer 2013

NORWELL/HANOVER 
        5 Assinippi Avenue
        Hanover, MA 02339 

SCITUATE 
        400 Gannett Road
        North Scituate, MA 02066

SOUTH WEYMOUTH
        32 Pleasant Street
        South Weymouth, MA 02190

BRANCH OFFICES

BOSTON
        BEACON HILL
        80 Charles Street
        Boston, MA 02114

        SOUTH END
        540 Tremont Street
        Boston, MA 02116

COHASSET
        13 Elm Street
        Cohasset, MA 02025

HINGHAM
        Main Office
        55 Main Street
        Hingham, MA 02043

        Loan Center
        49 Main Street
        Hingham, MA 02043

        Drive-Up 
        71 Main Street
        Hingham, MA 02043

        SOUTH HINGHAM
        37 Whiting Street
        Hingham, MA 02043

        LINDEN PONDS
        300 Linden Ponds Way
        Hingham, MA 02043
        (serving Linden Ponds residents 
        and employees) 

HINGHAM

INSTITUTION FOR

SAVINGS

ESTABLISHED 1834

55 Main Street, Hingham, MA 02043
Tel: 781-749-2200   Fax: 781-740-4889  
www.hinghamsavings.com

Member FDIC/Member DIF

Equal Housing Lender

2012 ANNUAL REPORT

A TRADITION OF VALUE
— A FUTURE OF SERVICE

“Simple  Banking  -  Honest  Value  –  Happy  Customers”.  For  179  years,  we  have
provided  straight-forward  banking  products  delivered  in  a  professional  manner
with particular attention to the individual needs of our customers. This focus has
produced a vibrant and growing institution. We believe that our past will shape our
future. While  remaining  faithful  to  our  traditions,  we  are  focused  on  constantly
improving our customer experience, expanding into new markets, and delivering a
superior return to our shareholders.

We are fortunate to be an integral part of the history of Hingham and the South
Shore. In recent years, we have expanded our market area with the opening of new
branches in the South End and Beacon Hill neighborhoods of Boston. We have been
warmly welcomed in these neighborhoods. In addition to continuing our expansion
in the city, we are also eagerly anticipating the summer opening of a branch on
Nantucket’s historic Main Street. For many years we have provided loans to Island
residents and businesses, and we look forward to expanding our services there.

This  past  year,  we  redesigned  and  enhanced  our  online  banking  site  for  both
personal  and  business  banking.  We  are  proud  of  the  site’s  improved  customer
interface and capabilities. We continue to evaluate new products and services for
our customers, while retaining the simplicity that is the hallmark of the Bank. This
simplicity allows us to act quickly and flexibly to support our customer’s personal
and business needs.

Our customers are a reflection of who we are at Hingham Savings. From business
banking to personal banking, we are committed to those we serve. The following
pages highlight several of our important customer relationships:

(cid:0) Nantucket Looms has been a key player in the revitalization effort that
gave Nantucket  its  cachet  and  contributes  to  its  reputation  as  a  unique
vacation destination. 

(cid:0) Sing Ming Chan has applied his furniture and crafts knowledge to the
creation of beautiful buildings and a highly successful real estate business. 

(cid:0) Land  Rover  continues  to  deliver  industry-leading  vehicles  that  have
delighted automobile enthusiasts since 1948. 

(cid:0) Real estate developer John Woodin’s talent for project management has
allowed him to expand his business from distressed rehabs to a spectacular
multimillion dollar condominium development in Hingham. 

(cid:0) The Gegler family has smoothly transitioned from the suburbs to the city.

FINANCIAL HIGHLIGHTS

13.3

12.1

10.2

1.30

1.25

1.19

1.09

1.04

8.0

6.3

08

09

10

11

12

08

09

10

11 

12

Net Income 
($ in millions)

Dividends Declared
($ per share)

1,205.9

1,127.3

1,017.8

925.6

806.2

869.9

949.7

787.6

730.0

631.1

525.3

849.8

792.9

718.2

647.3

08

09

10

11 

12

08

09

10

11 

12

08

09

10

11 

12

Assets 
($ in millions)

Deposits 
($ in millions)

Loans, net 
($ in millions)

FROM THE PRESIDENT

This past year, we continued to demonstrate the extraordinary results that can be
achieved  by  combining  a  focused  strategy  with  efficient  execution.  We  achieved
record  earnings  of  $13.3  million  or  $6.25  per  share  (basic  and  diluted).  This
represents a 10% increase over the previous year’s record earnings.

We realized a return on average equity of 15.05%, and our return on average assets
increased  to  1.15%.  On  a  regional  and  national  basis,  these  are  some  of  the
strongest earnings metrics in our industry.

Our consistent growth pattern of recent years continued with a 10% increase in total deposits, a 12% increase in total
loans and a 7% increase in total assets.

Asset quality continued to strengthen from already impressive levels. At December 31, 2012, non-performing assets
totaled a mere 0.28% of total assets; down from 0.92% of total assets at the prior year end. Our strong credit culture
and intense Board involvement have served us well during these past years of economic turmoil.

Our company-wide efforts at cost control continue to contribute to our financial strength. With an efficiency ratio of
41.54%, we have been able to achieve impressive rates of growth while also maintaining one of the leanest of expense
ratios. For the 18th consecutive year, we increased cash dividends declared per share.

These  financial  results;  the  impressive  growth;  the  strong  asset  quality;  the  tight  expense  control  and  the  industry
leading  earnings  performance,  are  all  the  product  of  an  experienced,  talented  and  committed  group  of  banking
professionals. From our Board committees to our front line staff, there is a unanimity of purpose.

We seek to provide our customers simple and effective banking services that meet their needs and are delivered in a
straight-forward  and  efficient  fashion.  This  allows  us  to  provide  extremely  competitive  rates  and  services  to  our
customers and strong returns to our shareholders.

This past year, we continued to enhance our deposit offerings with improvements to our retail and business online
banking products. We also implemented a remote deposit capture capability, electronic bank statements and other
incremental upgrades. These improvements and the success of our newest branch office on Beacon Hill contributed to
our steady growth.

We are an independent community bank with a proud and storied history. Our success of this past year confirms our
belief in the future of this 179 year-old institution. We are committed to the constant evolution that is necessary while
remaining true to our fundamentally conservative traditions.

I am grateful to our customers, shareholders, staff and directors for their support this past year, and I look forward to
our continued success in 2013.

Very truly yours,

Robert H. Gaughen, Jr.
President & CEO

NANTUCKET LOOMS

N antucket Looms is known around the world for its production hand weavings and one-of-a-

kind textiles. The shop was incorporated in 1968 by Andy Oates and Bill Euler, who had also
managed the restoration upholstery and drapes for the Jared Coffin House. A long line of
distinguished commissions followed for clients including I.M. Pei, Chanel, and the National Gallery of
Art. Since 1993, Nantucket Looms has been privately owned by Elizabeth Winship. Over the last decade,
she has successfully expanded on the rich offerings of this studio.

After  hearing  positive  recommendations  from  other  commercial  mortgage  customers  on  Nantucket,
Elizabeth was referred to Hingham Savings by one of Nantucket’s real estate brokers. She was interested
in purchasing a property for her store and weaving operations. In 2009, she purchased a property on
Main Street at a very attractive price. She credits the fast response of Loan Officer Shawn Sullivan and
our streamlined loan process for being able to take full advantage of a wonderful opportunity. We are
proud to have Elizabeth as a home mortgage customer as well.

We are a portfolio lender and our flexible approach to financing sets us apart. For us, it is a privilege to
visit  with  and  learn  about  the  businesses  of  our  customers. We  also  appreciate  that  timing  is  very
important to our business customers. As a locally managed bank, we are able to make fast, informed
decisions on loan requests. Our loan process is designed to close commercial real estate loans for our
customers smoothly and without delay.

Hingham Savings will be opening a branch on Main Street this summer, just a few doors down from
Nantucket Looms. Our Branch Manager & Loan Officer is longtime Nantucket resident Sara Congdon.
Shown  here  with  Elizabeth  Winship,  Sara  is  looking  forward  to  talking  with  island  merchants  and
residents about how Hingham Savings will best serve their deposit and financing needs.

successful working relationships. Our loan officers are an experienced group of
professionals, each of whom has been with the Bank for many years. They can
speak  with  confidence  about  our  credit  standards  and  expectations.  Our
customers know that the partner they worked with on prior projects will be
there for their next loan.

SING MING CHAN

S ing  Ming Chan  is  a  local  business  owner  with  retail  stores  in  the

Boston area. He characterizes his real estate endeavors as a hobby,
but  his  investments  have  been  enormously  successful.  Mr.  Chan
specializes  in  renovating  multifamily  apartment  buildings  and  high-end
condominium conversions. His family background in furniture making brings
an appreciation of quality craftsmanship. This recently completed multifamily
on  East  Broadway  in  South  Boston  features  many  fine  details,  including  a
wooden  spiral  staircase,  and  custom  dentil  moldings  on  the  exterior
entryways. Mr. Chan understands the changing market in South Boston and
these quality touches will surely be appreciated.

Mr. Chan came to Hingham Savings by referral from a family member who had
worked with Vice President Shawn Sullivan on a commercial proposal. Since
2009, we have financed five separate properties for Mr. Chan in South Boston,
all of which have been beautifully restored. Shawn and Mr. Chan have a strong
partnership based on a rare combination of mutual respect and trust – the
kind that only comes from a conscious effort to know our customers and build

LAND ROVER

T im  Porelle  has  operated  his  successful  Land  Rover  dealerships  in

Hanover and Hyannis for the past thirteen years. Whether you are
reading  one  of  the  many  glowing  customer  testimonials  on  the
Land  Rover  website  or  attending  an  off-road  experience,  the  message  is
consistent: these dealerships live up to the “Land Rover Way” with an ever-
evolving  product  line,  knowledgeable  personnel,  and  a  loyal  customer
community.

Relationships  are  important  to  Tim.  He  prefers  to  do  his  banking  with  a
community bank. Our Norwell/Hanover branch is located directly across the
street  from  the  dealership.  Tim  stopped  by  to  meet  with  Assistant  Vice
President & Branch Manager Denise Quirk last year. It was evident to him that
we  share  his  core  business  values,  and  he  has  been  banking  with  us  ever
since.  He  appreciates  the  individual  service  that  Denise  provides  on  every
aspect of his business banking.

Even as we have invested in new technologies to support our customers, we
recognize that our true distinction is found in the manner in which we deliver
these services. Our relationship with Tim testifies to our commitment.

DERBY BROOK TOWN HOMES

John Woodin of Realty Assets, Inc. has a 25-year history of development

success in the Boston area. His most recent project in South Hingham is
his most ambitious: Derby Brook is a 20-unit, condominium townhouse
development.  Currently  in  the  second  phase  of  development,  the  2,000
square-foot  townhome-style  condos  are  upscale  and  traditional  in  style,
featuring high-end amenities, a private road and wooded surroundings. The
project  also  includes  a  percentage  of  affordable  units. The  response  to  the
development  has  been  overwhelmingly  positive,  and  John  anticipates
building  out  the  entire  Derby  Brook  development  by  the  end  of  this  year,
selling out at 15% higher than projections.

John  was  referred  to  Hingham  Savings  by  another  Hingham  customer  in
2001, and he has partnered with us ever since. He especially enjoys working
with  Assistant  Vice  President  &  Loan  Officer  Janice  Spiess.  As  General

Contractor, he manages every aspect of his projects, and he appreciates our
accessibility.  His  phone  calls  are  answered  promptly,  and  we  are  always
available  for  a  meeting  or  to  provide  the  assistance  that  will  keep  his
construction projects running smoothly. Janice’s thorough understanding of
the  construction  process  and  our  streamlined,  no  red-tape  policy  keep  his
projects on track and on budget.

We are a locally managed bank. Our officers live and work in the communities
we  serve.  We  understand  the  importance  of  fast,  knowledgeable  service,
especially  when  working  with  time-sensitive  home  purchases.  Our  loan
decisions are made locally, and our officers personally see each loan through
the entire process. We work with our customers to find the best possible fit for
their mortgage financing needs and ensure that their loan transaction with us
is a best-in-class experience. Long after the closing, our customer relationships
continue; every mortgage is serviced in-house, which means you will always
reach a real person at Hingham Savings whenever you call us about your loan.

GEGLER RESIDENCE

G ene and Mary Gegler raised their young family in Hingham. When

their children began attending high school in the Boston area, they
decided  to  move  to  the  city.  For  three  years,  they  rented  while
exploring  various  neighborhoods,  allowing  them  to  decide  just  where  they
wanted to live. Last year, they attended an open house and fell in love with a
garden condominium deep in the heart of the South End.

As  community  members,  the  Gegler's  were  already  familiar  with  Hingham
Savings. On a referral from one of our Directors, they called on Tony Tierno,
Assistant  Vice  President  &  South  End  Branch  Manager,  for  their  mortgage
financing. As it turned out, Tony already knew the property that the Geglers
were interested in purchasing. Not only were the condominium developers,
David Goldman and Dennis Kanin, longtime customers of the Bank, but the
finish work on the unit had also been done by another one of our commercial
customers, Kennedy Design Build. It was a match that was meant to be. The
Gegler’s new mortgage was processed smoothly and without delay, and they
are happily settled in their new home. They are impressed with our high level
of service and Gene often comments on how easy the Bank made the whole
process for them.

SENIOR OFFICERS

Robert A. Bogart
Vice President 
& Treasurer

Peter R. Smollett
Vice President 
Commercial Lending

Shawn T. Sullivan
Vice President 
Commercial Lending

William M. Donovan Jr. 
Vice President 
Administration

Robert H. Gaughen, Jr.
President 
& Chief Executive Officer

William G. Bowers, Jr. 
Vice President 
Commercial Lending

Alexander L. Boyd
Vice President 
Commercial Lending

Michael J. Sinclair
Vice President 
Retail Lending

Patrick R. Gaughen
Vice President 
Chief Strategy 
& Corporate Development

Thomas I. Chew
Vice President 
Branch Operations

BOARD OF DIRECTORS

Howard M. Berger, Esq.

Michael J. Desmond

Marion J. Fahey

Ronald D. Falcione

Kevin W. Gaughen, Esq.

Patrick R. Gaughen

Robert H. Gaughen, Jr., Esq.

Julio R. Hernando, Esq.

Brian T. Kenner, Esq.

Robert A. Lane, Esq.

Scott L. Moser

Stacey M. Page

Robert K. Sheridan

Edward L. Sparda 

Donald M. Tardiff M.D.

Geoffrey C. Wilkinson, Sr.

Jacqueline M. Youngworth

FINANCIAL HIGHLIGHTS

Selected Financial Data 

The following information does not purport to be complete and is qualified in its entirety by the more detailed information 

contained in the Bank’s Annual Report on Form 10-K. 

Total assets   … … … … … … … … …  
Securities available for sale… … … …    
Loans: 
   Residential loans … … … … … … …    
   Commercial mortgage … … … … …    
   Construction   … … … … … … … …    
   Other … … … … … … … … … … …    
Allowance for loan losses   … … … …    
Deposits    … … … … … … … … … …    
Federal Home Loan Bank advances…  
Stockholders’ equity  … … … … … …    

2012 

2011 

2010 

2009 

2008 

        (In Thousands) 

At December 31, 

$  1,205,884 
102,866 

  $  1,127,276 
96,689 

  $  1,017,845 
95,071 

  $  925,560 
96,374 

  $  806,193 
87,380 

457,217 
438,037 
60,390 
869 
7,999 
869,886 
234,355 
92,799 

408,607 
404,343 
42,269 
1,090 
7,516 
787,573 
247,471 
82,265 

385,525 
383,361 
29,065 
958 
6,905 
729,960 
207,580 
72,736 

350,433 
348,700 
23,228 
833 
5,737 
631,087 
222,636 
65,293 

  299,866 
  317,162 
33,315 
799 
4,530 
  525,334 
  214,994 
59,825 

 2012 

 2011 

Years Ended December 31, 
2009 

2010 

2008 

  (Dollars in Thousands, Except Per Share Amounts) 

Income Statement Data: 

Total interest and dividend income …………… 
Total interest expense…………………………… 
Net interest income …………………… 
Provision for loan losses  …………………… 
Other income …………………………………… 
Operating expenses   ..………………………… 
Income before income taxes  ……………. 
Income tax provision  .…………………………  
Net income ……………………………… 

Earnings per common share: 

Basic……………………………………………… 

Diluted…………………………………………… 

Financial Ratios: 

Return on average assets……………………… 
Return on average equity………………………  
Average equity to average assets………………  
Interest rate spread…………………………….  
Net yield on average earning assets……………  
Dividend payout ratio (basic) ………………… 
Efficiency ratio……………………………………  
Cash dividends declared per common share …… 
Book value per common share  ………………… 

$ 

$ 

$ 

$ 
$ 

48,831    $ 
 10,937   
 37,894 

  725   
 1,666   
 16,434 
 22,401 
 9,111   
 13,290 

48,444    $ 
12,618 
35,826 
1,100 
1,700 
16,091 
20,335 
8,273 
  $  12,062 

  $ 

46,825    $ 
15,098   
31,727 
1,300   
1,627   
14,978 
17,076 
6,848   
10,228 

  $ 

44,798    $ 
17,599 
27,199 
1,700 
2,008 
14,371 
13,136 
5,091 
8,045 

  $ 

6.25    $ 

5.68    $ 

4.81    $ 

3.79 

  $ 

6.25    $ 

5.67    $ 

4.81    $ 

3.79 

  $ 

43,309 
21,980 
21,329 
805 
1,664 
12,123 
10,065 
3,780 
6,285 

2.96 

2.96 

 1.15 % 
 15.05 
 7.62   
 3.25 
 3.38   
 20.80   
 41.54   
  $ 
1.30 
43.65    $ 

1.14 % 
15.34 
7.44   
3.36 
3.50   
22.01   
42.88   
1.25 
  $ 
38.70    $ 

1.05  % 
14.67 
7.14   
3.20 
3.37   
24.74   
44.91   
1.19 
  $ 
34.24    $ 

0.93  % 

0.81 % 

12.78 
7.26 
3.11 
3.30 
28.76 
49.20 
1.09 
30.74 

  $ 
  $ 

11.08 
7.33 
2.52 
2.86 
35.14 
52.72 
1.04 
28.20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPARATIVE STOCK PERFORMANCE GRAPH

The chart which appears below sets forth the percentage change,
on an annual basis, in the cumulative total return on the Bank’s
Common Stock since December 31, 2007 through December 31,
2012. For comparative purposes, changes in the cumulative total
return  on  the  three  indices  of  publicly  traded  stocks  (the
“Indices”) are also set forth on the chart.

The  NASDAQ  Composite  Index  reflects  the  total  return  of  a
group  of  stocks  in  a  cross  section  of  industries.  Many  of  these
stocks  have  substantially  larger  market  capitalizations  than  the
Bank. The SNL Bank and Thrift Index tracks a national group of
publicly traded bank and thrift institutions.

The  final  Index,  SNL  New  England  Thrift  Index,  tracks  a  peer
group  of  all  publicly  traded  thrift  institutions  located  in  New

England.  SNL  Securities  is  a  research  and  publishing  firm  spe-
cializing in the collection and dissemination of data on the bank-
ing, thrift, and financial services industries. 

The chart begins with an equal base value of $100 for the Bank’s
stock  and  for  each  of  the  Indices  on  December  31,  2007  and
reflects year-end closing prices and dividends paid thereafter by
the Bank and by the companies which comprise the Indices. The
chart assumes full reinvestment of such dividends.

Information  about  the  Indices  has  been  obtained  from  sources
believed to be reliable, but neither the accuracy nor the complete-
ness of such information is guaranteed by the Bank.

Index 
Hingham Institution for Savings 
NASDAQ Composite 
SNL New England Thrift 
SNL Bank and Thrift 

Period Ending 

12/31/07 
100.00 
100.00 
100.00 
100.00 

12/31/08 
87.69 
60.02 
105.24 
57.51 

12/31/09 
111.43 
87.24 
100.14 
56.74 

12/31/10 
167.02 
103.08 
102.64 
63.34 

12/31/11 
184.07 
102.26 
101.63 
49.25 

12/31/12 
246.63 
120.42 
107.91 
66.14 

TOTAL RETURN PERFORMANCE

Hingham Institution for Savings

NASDAQ Composite

SNL New England Thrift

SNL Bank and Thrift

300 —

250 —

200 —

150 —

100 —

50 —

0 —
12/31/07

12/31/08

12/31/09

12/31/10

12/31/11

12/31/12

 
 
 
 
 
  
 
 
 
CONSOLIDATED BALANCE SHEETS

ASSETS 

December 31, 

2012 

2011 

(In Thousands) 

Cash and due from banks  ……………………………………………………………. 
Short-term investments  ……………………………………………………………… 
      Cash and cash equivalents  ……………………………………………………….  

  $ 

Certificates of deposit………………………………………………………………… 
Securities available for sale, at fair value  ……………………………………………  
Federal Home Loan Bank stock, at cost   ……………………………………………. 
Loans, net of allowance for loan losses 
      of $7,999,000 in 2012 and $7,516,000 in 2011  …………………………………. 
Foreclosed assets   …………………………………………………………………… 
Bank-owned life insurance    ………………………………………………………… 
Premises and equipment, net …………………………………………………………  
Accrued interest receivable   ………………………………………………………… 
Prepaid FDIC assessment ……………………………………………………………. 
Deferred income tax asset, net  ………………………………………………………  
Other assets   …………………………………………………………………………  
     Total assets   ……………………………………………………………………… 

7,961 
79,373 
87,334 

13,737 
102,866 
14,105 

949,662 
471 
14,945 
14,180 
2,667 
1,364 
2,556 
1,997 
  $  1,205,884 

  $ 

8,918 
107,422 
116,340 

13,405 
96,689 
13,373 

849,776 
3,629 
14,524 
10,597 
2,858 
1,871 
2,704 
1,510 
  $  1,127,276 

LIABILITIES AND STOCKHOLDERS’ EQUITY 

Deposits ………………………………………………………………………………  
Federal Home Loan Bank advances  …………………………………………………  
Mortgage payable ……………………………………………………………………  
Mortgagors’ escrow accounts  ……………………………………………………… 
Accrued interest payable …………………………………………………………….  
Other liabilities……………………………………………………………………….  
      Total liabilities …………………………………………………………………...  

$ 

869,886 
234,355 
1,065 
3,231 
478 
4,070 
  1,113,085 

  $ 

787,573 
247,471 
1,107 
2,517 
475 
5,868 
  1,045,011 

Stockholders’ equity: 
      Preferred stock, $1.00 par value, 
            2,500,000 shares authorized, none issued ….………………………………… 
      Common stock, $1.00 par value, 5,000,000 shares 
            authorized; 2,125,750 shares issued and  
            outstanding at December 31, 2012 and 
            December 31, 2011 …………………………………………………………… 
      Additional paid-in capital    ……………………………………………………… 
      Undivided profits    ……………………………………………………………… 
      Accumulated other comprehensive income    ……………………………………  
            Total stockholders’ equity     ………………………………………………… 
     Total liabilities and stockholders’ equity     ……………………………………… 

— 

— 

2,126 
10,519 
79,930 
224 
92,799 
$  1,205,884 

2,126 
10,500 
69,404 
235 
82,265 
  $  1,127,276 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF NET INCOME

Interest and dividend income: 
      Loans ……………………………………………………………………… 
      Debt securities   …………………………………………………………… 
      Equity securities…………………………………………………………… 
      Short-term investments and certificates of deposit   ……………………… 
            Total interest and dividend income …………………………………… 
Interest expense: 
      Deposits…………………………………………………………………… 
      Federal Home Loan Bank advances ……………………………………… 
      Mortgage payable ………………………………………………………… 
            Total interest expense ………………………………………………… 

Net interest income …………………………………………………………… 
Provision for loan losses ……………………………………………………… 
Net interest income, after provision for loan losses   ………………………… 

Other income: 
      Customer service fees on deposits………………………………………… 
      Increase in Bank-owned life insurance…………………………………… 
      Miscellaneous   …………………………………………………………… 
            Total other income …………………………………………………… 
Operating expenses: 
      Salaries and employee benefits …………………………………………… 
      Data processing …………………………………………………………… 
      Occupancy and equipment    ……………………………………………… 
      Deposit insurance  ………………………………………………………… 
      Foreclosure………………………………………………………………… 
      Marketing  ………………………………………………………………… 
      Other general and administrative  ………………………………………… 
            Total operating expenses……………………………………………… 

Income before income taxes   ………………………………………………… 
Income tax provision  ………………………………………………………… 
      Net income    ……………………………………………………………… 

Earnings per common share: 
      Basic  ……………………………………………………………………… 

      Diluted  …………………………………………………………………… 

 Years Ended December 31, 
2012 
 2010 
 2011 
(In Thousands, Except Per Share Amounts) 

$ 

$ 

$ 

$ 

47,753 
526 
198 
354 
48,831 

5,858 
5,014 
65 
10,937 

37,894 
725 
37,169 

1,008 
421 
237 
1,666 

9,643 
884 
1,709 
611 
336 
654 
2,597 
16,434 

22,401 
9,111 
13,290 

6.25 

6.25 

$ 

$ 

$ 

$ 

47,191 
749 
153 
351 
48,444 

6,751 
5,799 
68 
12,618 

35,826 
1,100 
34,726 

987 
450 
263 
1,700 

8,894 
883 
1,528 
701 
1,038 
650 
2,397 
16,091 

20,335 
8,273 
12,062 

5.68 

5.67 

$ 

$ 

$ 

$ 

44,878 
1,418 
106 
423 
46,825 

8,125 
6,903 
70 
15,098 

31,727 
1,300 
30,427 

893 
459 
275 
1,627 

8,371 
853 
1,280 
1,074 
726 
501 
2,173 
14,978 

17,076 
6,848 
10,228 

4.81 

4.81 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STOCKHOLDER INFORMATION

(cid:1)
Hingham Institution for Savings 
55 Main Street 
Hingham, MA 02043 
(781) 749-2200 

President and Chief 
Executive Officer 
Robert H. Gaughen, Jr. 

Investor Inquiries 
William M. Donovan, Jr. 
Vice President –Administration 

TransferAgent and Registrar 
Computershare 
250 Royall St. 
Canton, MA 02021 
(800) 288-9541 

Online Registered Shareholder Access 
www.computershare.com/investor 

Stockholder Inquiries 
Computershare 
For Hingham Institution for Savings 
P.O. Box 358015 
Pittsburgh, PA 15252-8015 
(800) 288-9541 

Independent Registered Public Accounting Firm 
Wolf & Company, P.C. 
99 High Street 
Boston, MA 02110 

Special Counsel 
WilmerHale 
60 State Street 
Boston, MA 02109 

(cid:1)

Data 

Stock 
Hingham Institution for Savings’ common shares are listed and 
traded on The NASDAQ Stock Market under the symbol HIFS. 

As  of  December  31,  2012,  there  were  approximately  352 
stockholders  of  record,  holding  731,079  outstanding  shares  of 
common  stock.  These  shares  do  not  include  the  number  of 
persons who hold their shares in nominee or street name through 
various brokerage firms. 

The  following  table  presents  the  quarterly  high  and  low  bid 
prices for the Bank’s common stock reported by NASDAQ. 

2012 
First Quarter  
Second Quarter  
Third Quarter  
Fourth Quarter  

2011 
First Quarter  
Second Quarter  
Third Quarter  
Fourth Quarter  

High 

Low 

$ 56.94  
61.40  
66.99  
82.34  

$ 51.51  
53.00  
57.50  
50.00  

$ 47.90 
53.79 
57.74 
59.55 

$ 42.80 
44.77 
45.75 
46.15 

The closing sale price of the Bank’s common stock at December 
31, 2012 was $62.60 per share. 

Form 10-K and Proxy Statement 
A copy of the Bank’s Annual Report on Form 10-K and Proxy 
Statement for the fiscal year ended December 31, 2012, as filed 
with  the  Federal  Deposit  Insurance  Corporation,  may  be 
obtained  without  charge  by  any  stockholder  of  the  Bank  upon 
written request addressed to the Investor Relations Department.  
Additionally, the Bank’s Annual Report on Form 10-K and the 
at 
are 
Proxy 
www.hinghamsavings.com 

electronically 

Statement 

available 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13-2462 HIS Cov_Layout 1  3/19/13  11:35 AM  Page 1

HULL
        401 Nantasket Avenue
        Hull, MA 02045

NANTUCKET
        35 Main Street
        Nantucket MA 02554
        Coming in Summer 2013

NORWELL/HANOVER 
        5 Assinippi Avenue
        Hanover, MA 02339 

SCITUATE 
        400 Gannett Road
        North Scituate, MA 02066

SOUTH WEYMOUTH
        32 Pleasant Street
        South Weymouth, MA 02190

BRANCH OFFICES

BOSTON
        BEACON HILL
        80 Charles Street
        Boston, MA 02114

        SOUTH END
        540 Tremont Street
        Boston, MA 02116

COHASSET
        13 Elm Street
        Cohasset, MA 02025

HINGHAM
        Main Office
        55 Main Street
        Hingham, MA 02043

        Loan Center
        49 Main Street
        Hingham, MA 02043

        Drive-Up 
        71 Main Street
        Hingham, MA 02043

        SOUTH HINGHAM
        37 Whiting Street
        Hingham, MA 02043

        LINDEN PONDS
        300 Linden Ponds Way
        Hingham, MA 02043
        (serving Linden Ponds residents 
        and employees) 

HINGHAM

INSTITUTION FOR

SAVINGS

ESTABLISHED 1834

55 Main Street, Hingham, MA 02043
Tel: 781-749-2200   Fax: 781-740-4889  
www.hinghamsavings.com

Member FDIC/Member DIF

Equal Housing Lender

2012 ANNUAL REPORT