HIFS - Hingham Institution For Savings: Why It's One Of My Favorite Banks In The U.S.
2024-05-02 10:11:16 ET
Summary
- Hingham Institution for Savings is one of my favorite financial institutions, defined by outstanding asset quality and a dedication to risk management.
- The bank has historically outperformed industry giants like Bank of America in terms of returns, NIM and NPAs.
- While profitability has declined in recent years, it is likely due to the tough macro environment rather than inherent weaknesses at HIFS.
- Current valuations suggest shares are trading around a fair valuation despite a heavy discount relative to historic prices.
- Strong Buy rating issued.
Investment Thesis
Hingham Institution for Savings ( HIFS ) is in my opinion one of the finest financial establishments in the U.S. The bank has outstanding asset quality thanks to a laser focused approach to risk management and mitigation.
The bank has also historically been one of the best performing financial institutions in the U.S. with 5Y average returns handily outperforming industry giants like Bank of America ( BAC ).
While profitability has taken a hit over the last two years, I believe this is mainly due to a tough macro environment rather than inherent weaknesses at HIFS....
Hingham Institution For Savings: Why It's One Of My Favorite Banks In The U.S.