BOSTON
COHASSET
HINGHAM
HULL
NANTUCKET
NORWELL/HANOVER
WASHINGTON, DC
www.hinghamsavings.com
Member FDIC/Member DIF | Equal Housing Lender
2019
Annual Report
F i n a n c i a l H i g h l i g h t s
F r o m t h e C h a i r m a n a n d P r e s i d e n t
19.3 23.4 25.8 30.4 38.9
1.46 1.56 1.66 1.92 2.18
64.83 75.50 87.29 99.67 115.75
1.58
1.42
1.32
1.24
1.16
15 16 17 18 19
15 16 17 18 19
15 16 17 18 19
Net Income
($ in millions)
Dividends Declared*
($ per share)
Book Value
($ per share)
1,769 2,015 2,285 2,409 2,590
1,217 1,366 1,506 1,573 1,821
1,406 1,606 1,834 2,009 2,227
15 16 17 18 19
15 16 17 18 19
15 16 17 18 19
Assets
($ in millions)
Deposits
($ in millions)
Loans, net
($ in millions)
*Dividends Declared: Dividends declared chart includes the total regular dividends declared (dark shading) and the total dividends declared
including any special dividends (light shading).
To Our Business Partners:
2019 was another outstanding year for Hingham Institution
for Savings.
We earned a record $38.9 million for our owners, a 28%
increase from 2018. Our return on average equity of
16.82% and our return on average assets of 1.55% place us
among the most profitable banks in the country. Net loans
increased by 11% to $2.227 billion, deposits increased by
16% to $1.821 billion, and total assets increased by 8%
to $2.590 billion. Book value per share rose 16% in 2019
from $99.67 to $115.75 per share. This excludes capital
returned to the ownership through regular and special dividends - we declared $2.18 in dividends per share in
2019. The trailing five year compound annual growth rate in book value per share, an important measure of
long-term value creation, was 15.2%. The efficiency ratio was 30.26%, a reflection of our disciplined approach
to expense control.
We made significant progress this year strengthening our technology infrastructure and expanding our
presence in our two primary markets - the greater Boston and Washington D.C. metropolitan areas. Despite
extraordinary concentrations of talent and innovation, decades of consolidation have left these markets with
fewer small and mid-sized banks that can build personal relationships with clients.
This continues to create opportunities for Hingham. With a commitment to independence, a balance sheet that
can support lending relationships up to $50 million, and speed and surety of execution, Hingham can deliver
unique value.
Last year, we noted that we were planning for a permanent home in Washington. We have purchased a
property in Georgetown and we are working with our architects to renovate the building to house our growing
Washington team. If you are a commercial lender or relationship manager in Boston or Washington, customer-
oriented with a commitment to excellence, call us.
Since our family became associated with the Bank twenty-seven years ago, it has been our objective to build
one of America’s great banks, characterized by superior long-term financial results, a fortress balance sheet
that provides unquestionable assurance to our depositors, and an enduring culture of growth and success.
We are well on our way.
Very truly yours,
Robert H. Gaughen, Jr.
Patrick R. Gaughen
Chairman of the Board and Chief Executive Officer
President and Chief Operating Officer
2 7 Ye a r s o f P e r f o r m a n c e
B o o k V a l u e P e r S h a r e
$115.75
$120
$100
$80
$60
$40
$20
$120
$100
$80
$60
$40
$20
$7.35
(dollars in thousands
except per share data)
1993*
1994*
1995*
1996*
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Total Assets
Total Net Loans
Book Value Per Share
Return on Equity
Earnings Per Share (Basic) $
$
$
$
147,889
76,936
7.35
1.34%
0.10
$
$
$
$
153,192
100,398
8.24
17.09%
1.33
$
$
$
$
175,409
119,472
9.17
11.11%
0.98
$
$
$
$
201,586
151,166
9.87
11.06%
1.05
$
$
$
$
222,584
172,839
10.93
13.00%
1.36
$
$
$
$
260,076
204,774
12.05
13.18%
1.53
$
$
$
$
291,183
229,687
12.83
13.07%
1.65
$
$
$
$
337,881
266,568
14.46
15.17%
2.07
$
$
$
$
386,181
282,386
16.38
15.95%
2.49
$
$
$
$
426,430
320,692
18.48
16.58%
2.91
$
$
$
$
483,954
358,778
19.68
13.53%
2.58
$
$
$
$
547,051
415,538
21.29
13.56%
2.80
$
$
$
$
628,251
488,126
23.01
13.20%
2.95
$
$
$
$
691,652
539,104
24.47
9.18%
2.19
$
$
$
$
744,602
593,915
25.85
8.40%
2.12
$
$
$
$
806,193
647,255
28.20
11.08%
2.96
$
$
$
$
925,560
718,242
30.74
12.78%
3.79
$ 1,017,845
792,910
$
34.24
$
14.67%
4.81
$
$ 1,127,276
849,776
$
38.70
$
15.34%
5.68
$
$ 1,205,884
949,662
$
43.65
$
15.05%
6.25
$
$ 1,356,441
$ 1,078,879
48.49
$
13.52%
6.28
$
$ 1,552,205
$ 1,238,656
57.08
$
19.30%
10.46
$
$ 1,768,528
$ 1,405,533
64.83
$
14.81%
9.09
$
$ 2,014,599
$ 1,605,647
75.50
$
15.59%
10.99
$
$ 2,284,599
$ 1,833,987
87.29
$
14.73%
12.08
$
$ 2,408,587
$ 2,009,288
99.67
$
14.97%
14.25
$
$ 2,590,346
$ 2,227,062
115.75
$
16.82%
18.24
$
*per share data for 1993, 1994, 1995 and 1996 adjusted for the 3 for 2 stock split
() () () () () () () () () () () () () () () () () ()()()()()()()()()()() () () () () () () () () () () () () () () () () () () () ()()()()()()()() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () Ellis
Lauren Cook, Chief Executive Officer
(Pictured below with her daughter, Austin - student at Ellis)
Boston, Massachusetts
Founded in 1885, Ellis is one of the top early childhood education providers in the
nation, known for serving an economically diverse population of families in Boston’s
South End and surrounding communities.
Hingham has supported Ellis philanthropically for many years, consistent with our
broader commitment to expanding educational opportunities in the communities
we serve. In 2019, the Bank developed a deeper relationship with the organization,
refinancing its historic buildings on Berkeley Street, and providing a full range of
banking services. We also provided a line of credit for future renovation projects. Ellis
appreciated the hand-delivered proposal and unique non-profit financing terms and we
look forward to working together to advance the Ellis mission for future generations.
“Hingham understands the unique needs of its
nonprofit customers. Hingham’s support of Ellis
allows us to sustain our legacy as a leader in early
childhood education.”
Lauren Cook
Chief Executive Officer
The JCR Companies
Joe Reger, Founder
Washington, D.C.
Washington, D.C.-based JCR Companies is a full service real estate investment, leasing
and asset management firm. The company was founded in 2009 by Joe Reger and
since its inception has been keenly focused on opportunistic real estate investments.
JCR began working with Hingham in 2017 when the firm refinanced three commercial
condominiums located near Logan Circle. Hingham’s ability to execute quickly and with
precision aligned with JCR’s approach. Since that time, JCR and Hingham have worked
on four other transactions in the District and in Alexandria. JCR’s staff also works closely
with Hingham’s Specialized Deposit Group for all of the firm’s deposit needs.
“Hingham’s
“Hingham’s support of the local community aligns with
straightforward,
the USES’ mission. We value our partnership with the
streamlined, and efficient, allowing JCR to capitalize
loan process
is
Bank.”
on quality deals when time is of the essence.”
MACHARIA Z. WEIR LYTLE
Joe Reger
Founder
Community Development Corporation of Boston
James Dilday, President
Boston, Massachusetts
“When we first came to Hingham, the staff made
us feel like we had been banking with them forever.
We feel fortunate to work with such a wonderful
group of people.”
James Dilday
President
Led by President James Dilday, Community Development Corporation (CDC) of Boston was
founded to improve the quality of life for inner city residents through community and neighborhood
development. In 2018, with financing support from Hingham, it acquired and began redeveloping
the Sriberg building on Washington Street in Lower Roxbury. When completed, the building will
include both market-rate and affordable residential units, as well as street level retail and office
space. As part of the project, CDC of Boston is also planning improvements to a nearby park.
CDC of Boston came to Hingham not only for construction financing, but a relationship with a
flexible and responsive bank. Hingham has a long history of financing and banking nonprofit
organizations with a community development mission.
Frank Williams
Real Estate Investor & Officer in the Boston Police Department
Boston, Massachusetts
“My relationship with Hingham is one of mutual
trust - you will not find that at other banks.”
Frank Williams
Real Estate Investor
130 West Newton Street holds a lifetime of history for Frank Williams. His father purchased
the four-story brownstone in 1961 and Frank was born there a year later. Frank spent
his childhood in the South End and later patrolled the neighborhood when he joined the
Boston Police Department. When his father passed away, Frank began renovating the
property into 3 luxury units, one of which he will live in.
Prior to working with Hingham, Frank had difficulty finding a bank that would finance
his renovation project. The lenders and leadership at Hingham spent time with Frank to
understand his objectives and vision and put together financing that allowed him to make
his dream home a reality.
The Trinity Collection
Edward Townsend Wright II (Spyder), Owner
Edward Townsend Wright III, Owner
(listed from left to right)
Nantucket, Massachusetts
The Trinity Collection in Nantucket is known for its rare and fine watches. Father/Son team Spyder
and Edward Wright co-own the Nantucket shop which features the high-end watch and jewelry
collection in the front, and a surf shop built around Spyder’s former professional career in the
back. They are located directly across the street from Hingham’s office on the Island.
The Wrights began banking with Hingham in 2013. They needed a bank that could provide
dedicated personal service for all of their needs, whether they were on Nantucket or at their
location in Palm Beach. Hingham’s dedicated relationship managers, convenient branch location,
and digital tools made this possible. Hingham also provided flexible tailored financing - a hallmark
of our personal approach to banking.
“Whether across the street or across the country,
we always receive excellent service from the staff at
Hingham.”
Edward Townsend Wright III
Owner
True North Capital Partners
Mat Glauninger, Managing Partner
Jeff Bruce, Managing Director & Founder
(listed from left to right)
Boston, Massachusetts
“Since we started doing business with Hingham over
“Hingham took the time to understand our process
20 years ago, their commitment to excellence in
and how we maximize returns for our investors. We
client service has remained consistent.”
know Hingham shares our vision.”
Jeff Bruce
MORDECAI DANESH
Managing Director & Founder
Founder and President
True North Capital Partners, founded by Jeff Bruce and Mat Glauninger, is a real estate
investment firm that develops and manages multi-family properties in the greater Boston
area. Founded in 2009, the firm takes a unique approach to development with a mission
to refresh the buildings they rehab one unit at a time, and in turn, improve the surrounding
community.
Hingham has worked with True North since 2014, financing several of their renovation
projects. Jeff and Mat were impressed with Hingham’s hands-on approach to understanding
True North’s model. Instead of an “off-the-shelf” proposal, the financing was tailored to
their specific needs allowing True North to successfully execute their value-add strategy.
S e l e c t e d F i n a n c i a l D a t a
B o a r d o f D i r e c t o r s
Standing (left to right):
Seated (left to right):
Ronald D. Falcione
Robert A. Lane, Esq.
Michael J. Desmond
Scott L. Moser
Howard M. Berger, Esq.
Jacqueline M. Youngworth
Robert H. Gaughen, Jr., Esq.
Kara Gaughen Smith
Geoffrey C. Wilkinson, Sr.
Robert K. Sheridan, Esq.
Brian T. Kenner, Esq.
Julio R. Hernando, Esq.
Stacey M. Page
Kevin W. Gaughen, Jr., Esq.
Patrick R. Gaughen
S t o c k h o l d e r I n f o r m a t i o n
Stock Data
Hingham Institution for Savings’ common shares are
listed and traded on The NASDAQ Stock Market under the
symbol HIFS.
As of December 31, 2019, there were approximately 212
stockholders of record, holding 127,590 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
prices for the Bank’s common stock reported by NASDAQ.
High
Low
2019
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
2018
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
$ 208.88
203.63
206.27
212.59
$ 233.13
229.40
227.50
229.99
$ 165.00
163.00
176.70
183.31
$ 195.05
201.89
213.84
194.03
The closing sale price of the Bank’s common stock at
December 31, 2019 was $210.20 per share.
Hingham Institution for Savings
55 Main Street
Hingham, MA 02043
(781) 749-2200
Chairman and
Chief Executive Officer
Robert H. Gaughen, Jr.
Investor Inquiries
Patrick R. Gaughen
President and Chief Operating Officer
Transfer Agent and Registrar
Computershare
P.O. Box 505000
Louisville, KY 40233
(800) 288-9541
Online Registered Shareholder Access
www.computershare.com/investor
Independent Registered Public Accounting Firm
Wolf & Company, P.C.
99 High Street
Boston, MA 02110
Special Counsel
Goodwin Procter
100 Northern Avenue
Boston, MA 02210
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, 2019 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 Proxy Statement are available electronically at
www.hinghamsavings.com.
BOSTON
COHASSET
HINGHAM
HULL
NANTUCKET
NORWELL/HANOVER
WASHINGTON, DC
www.hinghamsavings.com
Member FDIC/Member DIF | Equal Housing Lender
2019
Annual Report