HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $7.3 million, or $0.17 per diluted share, for the first quarter of 2024, compared to a net loss of $7.1 million, or $0.17 per diluted share for the preceding quarter, and net income of $7.3 million, or $0.16 per diluted share for the same period last year. Excluding the HarborOne Mortgage, LLC (“HarborOne Mortgage”) goodwill impairment charge of $10.8 million recorded in the fourth quarter of 2023, included in noninterest expense, net income and diluted earnings per share for the quarter ended December 31, 2023 were $3.7 million and $0.09, respectively.(1)

Selected Financial Highlights:

  • Strong asset quality; nonperforming loans as a percentage of total loans were 0.25% compared to 0.37% last quarter.
  • Increased noninterest income 20.6% on a linked-quarter basis.
  • Reduced noninterest expense 2.2% on a linked-quarter basis, excluding the goodwill impairment recorded in 2023.
  • Loan growth of $26.4 million, or 2.2% annualized.
  • Continued share repurchase program, repurchasing 558,900 shares at an average cost of $10.40 per share, totaling $5.8 million.
  • Returned $3.4 million of capital to shareholders via dividends and increased quarterly dividend by 6.7%.

“In this uncertain interest rate environment, our team remains laser focused on expense management and moderate commercial loan growth that brings operational deposits to the Bank,” said Joseph F. Casey, President and CEO. “This quarter was the first quarter since the second quarter of 2022 where the yield on interest-earning assets increased more than the cost of interest-bearing liabilities. I am pleased with our improved earnings this quarter and with our ability to return $9.2 million to shareholders through the cash dividend, which increased 6.7%, and through the continuation of our stock buybacks.”

Net Interest Income

The Company’s net interest and dividend income was $30.6 million for the quarter ended March 31, 2024, compared to $29.7 million for the quarter ended December 31, 2023, and $34.4 million for the quarter ended March 31, 2023. The tax equivalent interest rate spread and net interest margin were 1.62% and 2.25%, respectively, for the quarter ended March 31, 2024, compared to 1.56% and 2.23%, respectively, for the quarter ended December 31, 2023, and 2.28% and 2.78%, respectively, for the quarter ended March 31, 2023. The fourth quarter results included interest expense of $620,000 for the remaining unamortized issuance cost on the Company’s $35 million subordinated notes redeemed in the fourth quarter of 2023.

On a linked-quarter basis, the increase in the margin, spread and net interest and dividend income reflects average interest-earning assets increasing $172.8 million and the yield on interest-earning assets increasing 10 basis points while average interest-bearing liabilities increased $207.6 million and the cost of these liabilities increased 4 basis points. The cost of interest-bearing deposits, excluding brokered, decreased 2 basis points, driven by disciplined pricing in a competitive deposit market.

The $3.8 million decrease in net interest and dividend income from the prior year quarter reflects an increase of $14.8 million, or 68.6%, in total interest expense, partially offset by an increase of $11.0 million, or 19.6%, in total interest and dividend income. The cost of interest-bearing liabilities increased 106 basis points, while the average balance increased $521.3 million, and the yield on interest-earning assets increased 40 basis points, while the average balance increased $451.9 million.

Noninterest Income

Total noninterest income improved $1.8 million, or 20.6%, to $10.7 million for the quarter ended March 31, 2024, from $8.9 million for the quarter ended December 31, 2023. The change was primarily driven by an increase in the mortgage servicing rights (“MSR”) valuation for the three months ended March 31, 2024 of $628,000, compared to a decrease of $3.1 million in the MSR valuation for the three months ended December 31, 2023. The MSR valuation was positively impacted by key benchmark interest rates used in the valuation model, which increased from the prior quarter. The impact on the MSR valuation of principal payments on the underlying mortgages was $353,000 and $487,000 for the quarters ended, March 31, 2024 and December 31, 2023, respectively. During the first quarter of 2024, HarborOne Mortgage executed a hedge to partially mitigate potential MSR valuation losses in a declining rate environment. As a result, the MSR valuation gain was partially offset by a $221,000 hedging loss in the quarter.

Persistent low inventory of for-sale residential real estate and elevated mortgage interest rates continued to impact the results of HarborOne Mortgage, with gain on loan sales of $2.0 million from mortgage loan closings of $102.1 million for the quarter ended March 31, 2024, compared to $2.2 million from mortgage loan closings of $124.2 million on a linked-quarter basis. Slightly higher gain-on-sale margins partially offset seasonally lower production volume. Mortgage loan closings for the quarter ended March 31, 2023 were $125.6 million with a gain on loan sales of $2.2 million.

Total noninterest income for the quarter ended December 31, 2023 included a $305,000 gain on sale of a former bank branch, and $582,000 recognized on a Bank-owned life insurance (“BOLI”) surrender and exchange strategy. BOLI income was offset by a $464,000 corresponding tax impact included in the provision for income taxes and a modified endowment contract charge included in noninterest expense. The quarter ended March 31, 2024 had no such income.

Total noninterest income increased $2.1 million, or 23.6%, compared to the quarter ended March 31, 2023, primarily due to a $1.6 million, or 58.0%, increase in mortgage banking income. The prior year quarter reflected a $1.3 million decrease in the MSR valuation.

Noninterest Expense

Total noninterest expense decreased $11.5 million, or 26.5%, to $31.8 million for the quarter ended March 31, 2024, from $43.2 million for the quarter ended December 31, 2023. Excluding the one-time $10.8 million goodwill impairment charge from the fourth quarter results, noninterest expenses decreased $704,000 on a linked-quarter basis. Compensation and benefits expenses decreased $1.6 million as the fourth quarter of 2023 included catch-up accrual adjustments for incentives and certain benefits. The fourth quarter of 2023 also included $118,000 in severance expense for a reduction in force at HarborOne Mortgage. Loan expense increased $688,000, as the fourth quarter of 2023 included a $629,000 reversal of repurchase reserve at HarborOne Mortgage based on updated assumptions used to determine the estimate.

Total noninterest expense increased $241,000, or 0.8%, compared to the prior year quarter of $31.5 million. Deposit insurance expense increased $654,000 partially offset by a $365,000 decrease in marketing expense.

Asset Quality and Allowance for Credit Losses

Total nonperforming assets were $12.2 million at March 31, 2024, compared to $17.6 million at December 31, 2023 and $12.3 million at March 31, 2023. Nonperforming assets as a percentage of total assets were 0.21% at March 31, 2024, 0.31% at December 31, 2023, and 0.22% at March 31, 2023. During the first quarter of 2024, a single credit included in the metro office space loan segment with a carrying value of $5.7 million, considered nonperforming in the prior quarter, was paid with a partial recovery of $99,000.

The Company recorded a $168,000 negative provision for credit losses for the quarter ended March 31, 2024. The provision for loan credit losses was $338,000, offset by a negative provision of $506,000 for unfunded commitments. The provision for credit losses for the quarter ended December 31, 2023 was $644,000, a result of a provision for loan credit losses of $970,000 partially offset by a $326,000 negative provision for unfunded commitments. The Company recorded a provision for credit losses of $1.9 million for the quarter ended March 31, 2023, a result of a provision for loan credit losses of $1.7 million and a $119,000 provision for unfunded commitments. Net charge-offs totaled $125,000, or 0.01%, of average loans outstanding on an annualized basis, for the quarter ended March 31, 2024. Net charge-offs totaled $1.3 million, or 0.11%, of average loans outstanding on an annualized basis, for the quarter ended December 31, 2023, and net recoveries totaled $11,000 for the quarter ended March 31, 2023. Loan credit loss provisioning primarily reflects replenishment of the allowance for credit losses (“ACL”) on loans due to charge-offs and loan growth.

The ACL on loans was $48.2 million, or 1.01% of total loans, at March 31, 2024, compared to $48.0 million, or 1.01% of total loans, at December 31, 2023 and $47.0 million, or 1.02% of total loans, at March 31, 2023. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheets, amounted to $3.4 million at March 31, 2024, compared to $3.9 million at December 31, 2023 and $5.0 million at March 31, 2023.

Management continues to closely monitor the loan portfolio for signs of deterioration in light of speculation that commercial real estate values may deteriorate as the market adjusts to higher vacancies and interest rates. The commercial real estate portfolio is centered in New England, with approximately 75% of the portfolio secured by property located in Massachusetts and Rhode Island. Approximately 60% of the commercial real estate loans are fixed-rate loans with, in the opinion of management, limited near-term maturity risk. As of March 31, 2024 commercial loans rated “watch” amounted to $67.9 million, compared to $30.6 million at December 31, 2023. Loans are rated “watch” at the point when there are signs of potential weakness. Approximately 41% of the increase is due to one credit included in the office category. Management performs comprehensive reviews and works proactively with creditworthy borrowers facing financial distress and implements prudent workouts and accommodations to improve the Bank’s prospects of contractual repayment.

Three sub-sectors that Management identified as potentially more susceptible to weakness includes business-oriented hotels, non-anchored retail space, and metro office space. As of March 31, 2024, business-oriented hotels loans included 14 loans with a total outstanding balance of $122.0 million, non-anchored retail space loans included 28 loans with a total outstanding balance of $44.6 million, and metro office space loans included one loan with a total outstanding balance of $5.1 million. There is one business-oriented hotel credit with a carrying value of $1.8 million that was rated substandard and on nonaccrual. The other loans in these groups were performing in accordance with their terms.

Balance Sheet

Total assets increased $194.3 million, or 3.4%, to $5.86 billion at March 31, 2024, from $5.67 billion at December 31, 2023. The linked-quarter increase primarily reflects an increase in cash and cash equivalents.

Available-for-sale securities were $291.0 million and $290.2 million at March 31, 2024 and December 31, 2023, respectively. The unrealized loss on securities available for sale increased to $66.9 million as of March 31, 2024, as compared to $62.0 million of unrealized losses as of December 31, 2023. Securities held to maturity were flat at $19.7 million, or 0.3% of total assets, at March 31, 2024.

Loans increased $26.4 million, or 0.6%, to $4.78 billion at March 31, 2024, from $4.75 billion at December 31, 2023. The linked-quarter increase was primarily due to increases in commercial construction loans of $26.4 million, commercial real estate loans of $12.0 million, and commercial and industrial loans of $4.8 million, partially offset by decreases in residential mortgage loans of $14.0 million and consumer loans of $2.7 million.

Total deposits were $4.39 billion at March 31, 2024 and December 31, 2023. Compared to the prior quarter, non-certificate accounts decreased $43.5 million and term certificate accounts decreased $11.1 million, as a competitive rate environment continued to pressure deposit growth. Brokered deposits increased $61.3 million. As of March 31, 2024, FDIC-insured deposits were approximately 73% of total deposits, including Bank subsidiary deposits.

FHLB borrowings increased $10.9 million to $579.4 million at March 31, 2024 from $568.5 million at December 31, 2023. The Bank borrowed $175.0 million under the Bank Term Funding Program during the first quarter of 2024. As of March 31, 2024, the Bank had $921.1 million in available borrowing capacity across multiple relationships.

Total stockholders’ equity was $577.7 million at March 31, 2024, compared to $583.8 million at December 31, 2023. Stockholders’ equity decreased 1.0% when compared to the prior quarter, as net income was offset by share repurchases and an increase in unrealized loss on available-for-sale securities. As of March 31, 2024, the Company’s sixth share repurchase program, commenced in the third quarter of 2023, is ongoing with 1,781,950 shares repurchased since commencement, at an average price of $10.15, including $0.10 per share of excise tax. The tangible-common-equity-to-tangible-assets ratio(2) was 8.92% at March 31, 2024, 9.33% at December 31, 2023, and 9.60% at March 31, 2023. At March 31, 2024, the Company and the Bank had strong capital positions, exceeding all regulatory capital requirements, and are considered well-capitalized.

(1) These non-GAAP measures are net loss less goodwill impairment and net loss less goodwill impairment to weighted average shares outstanding on a diluted basis.
(2) This non-GAAP ratio is total stockholders’ equity less goodwill and intangible assets to total assets less goodwill and intangible assets.

About HarborOne Bancorp, Inc.

HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered trust company. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 30 full-service banking centers located in Massachusetts and Rhode Island, and commercial lending offices in Boston, Massachusetts and Providence, Rhode Island. HarborOne Bank also provides a range of educational resources through “HarborOne U,” with free digital content, webinars, and recordings for small business and personal financial education. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, provides mortgage lending services throughout New England and other states.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in general business and economic conditions (including inflation and concerns about inflation) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in interest rates; changes in customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; acquisitions may not produce results at levels or within time frames originally anticipated; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the SEC, which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The Company’s management believes that the supplemental non-GAAP information, which consists of income statement results excluding the goodwill impairment charge, total adjusted noninterest expense excluding the goodwill impairment charge, diluted earnings per share excluding the goodwill impairment charge, Return on average assets (ROAA), excluding the goodwill impairment charge, Return on average equity (ROAE), excluding goodwill impairment charge, the efficiency ratio, efficiency ratio excluding the goodwill impairment charge, tangible common equity to tangible assets ratio and tangible book value per share, is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

 

HarborOne Bancorp, Inc.

Consolidated Balance Sheet Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(in thousands)

 

2024

 

2023

 

2023

 

2023

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

36,340

 

 

$

38,876

 

 

$

38,573

 

 

$

43,525

 

 

$

38,989

 

Short-term investments

 

 

357,101

 

 

 

188,474

 

 

 

208,211

 

 

 

209,326

 

 

 

210,765

 

Total cash and cash equivalents

 

 

393,441

 

 

 

227,350

 

 

 

246,784

 

 

 

252,851

 

 

 

249,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

291,008

 

 

 

290,151

 

 

 

271,078

 

 

 

292,012

 

 

 

303,059

 

Securities held to maturity, at amortized cost

 

 

19,724

 

 

 

19,796

 

 

 

19,795

 

 

 

19,839

 

 

 

19,838

 

Federal Home Loan Bank stock, at cost

 

 

26,565

 

 

 

27,098

 

 

 

23,378

 

 

 

27,123

 

 

 

23,589

 

Asset held for sale

 

 

348

 

 

 

348

 

 

 

966

 

 

 

966

 

 

 

—

 

Loans held for sale, at fair value

 

 

16,434

 

 

 

19,686

 

 

 

17,796

 

 

 

20,949

 

 

 

13,956

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

2,355,672

 

 

 

2,343,675

 

 

 

2,349,886

 

 

 

2,286,688

 

 

 

2,286,727

 

Commercial construction

 

 

234,811

 

 

 

208,443

 

 

 

191,224

 

 

 

228,902

 

 

 

212,689

 

Commercial and industrial

 

 

471,215

 

 

 

466,443

 

 

 

450,547

 

 

 

453,422

 

 

 

423,036

 

Total commercial loans

 

 

3,061,698

 

 

 

3,018,561

 

 

 

2,991,657

 

 

 

2,969,012

 

 

 

2,922,452

 

Residential real estate

 

 

1,695,686

 

 

 

1,709,714

 

 

 

1,706,950

 

 

 

1,701,766

 

 

 

1,667,934

 

Consumer

 

 

19,301

 

 

 

22,036

 

 

 

24,247

 

 

 

27,425

 

 

 

32,246

 

Loans

 

 

4,776,685

 

 

 

4,750,311

 

 

 

4,722,854

 

 

 

4,698,203

 

 

 

4,622,632

 

Less: Allowance for credit losses on loans

 

 

(48,185

)

 

 

(47,972

)

 

 

(48,312

)

 

 

(47,821

)

 

 

(46,994

)

Net loans

 

 

4,728,500

 

 

 

4,702,339

 

 

 

4,674,542

 

 

 

4,650,382

 

 

 

4,575,638

 

Mortgage servicing rights, at fair value

 

 

46,597

 

 

 

46,111

 

 

 

49,201

 

 

 

48,176

 

 

 

47,080

 

Goodwill

 

 

59,042

 

 

 

59,042

 

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

Other intangible assets

 

 

1,326

 

 

 

1,515

 

 

 

1,704

 

 

 

1,893

 

 

 

2,082

 

Other assets

 

 

279,237

 

 

 

274,460

 

 

 

289,341

 

 

 

275,261

 

 

 

268,060

 

Total assets

 

$

5,862,222

 

 

$

5,667,896

 

 

$

5,664,387

 

 

$

5,659,254

 

 

$

5,572,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposit accounts

 

$

677,152

 

 

$

659,973

 

 

$

708,847

 

 

$

717,572

 

 

$

726,548

 

NOW accounts

 

 

305,071

 

 

 

305,825

 

 

 

289,141

 

 

 

286,956

 

 

 

287,376

 

Regular savings and club accounts

 

 

1,110,404

 

 

 

1,265,315

 

 

 

1,324,635

 

 

 

1,390,906

 

 

 

1,455,318

 

Money market deposit accounts

 

 

1,061,145

 

 

 

966,201

 

 

 

951,128

 

 

 

834,120

 

 

 

796,008

 

Term certificate accounts

 

 

852,326

 

 

 

863,457

 

 

 

859,266

 

 

 

742,931

 

 

 

653,553

 

Brokered deposits

 

 

387,926

 

 

 

326,638

 

 

 

276,941

 

 

 

315,003

 

 

 

322,927

 

Total deposits

 

 

4,394,024

 

 

 

4,387,409

 

 

 

4,409,958

 

 

 

4,287,488

 

 

 

4,241,730

 

Borrowings

 

 

754,380

 

 

 

568,462

 

 

 

475,470

 

 

 

604,568

 

 

 

590,665

 

Subordinated debt

 

 

—

 

 

 

—

 

 

 

34,380

 

 

 

34,348

 

 

 

34,317

 

Other liabilities and accrued expenses

 

 

136,135

 

 

 

128,266

 

 

 

159,945

 

 

 

137,318

 

 

 

106,352

 

Total liabilities

 

 

5,284,539

 

 

 

5,084,137

 

 

 

5,079,753

 

 

 

5,063,722

 

 

 

4,973,064

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

598

 

 

 

598

 

 

 

597

 

 

 

597

 

 

 

597

 

Additional paid-in capital

 

 

487,277

 

 

 

486,502

 

 

 

485,144

 

 

 

484,544

 

 

 

483,831

 

Unearned compensation - ESOP

 

 

(25,326

)

 

 

(25,785

)

 

 

(26,245

)

 

 

(26,704

)

 

 

(27,164

)

Retained earnings

 

 

363,591

 

 

 

359,656

 

 

 

369,930

 

 

 

364,709

 

 

 

360,454

 

Treasury stock

 

 

(199,853

)

 

 

(193,590

)

 

 

(187,803

)

 

 

(181,324

)

 

 

(175,514

)

Accumulated other comprehensive loss

 

 

(48,604

)

 

 

(43,622

)

 

 

(56,989

)

 

 

(46,290

)

 

 

(42,410

)

Total stockholders' equity

 

 

577,683

 

 

 

583,759

 

 

 

584,634

 

 

 

595,532

 

 

 

599,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

5,862,222

 

 

$

5,667,896

 

 

$

5,664,387

 

 

$

5,659,254

 

 

$

5,572,858

 

 

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(in thousands, except share data)

 

2024

 

2023

 

2023

 

2023

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

59,937

 

 

$

59,499

 

 

$

58,124

 

 

$

55,504

 

$

52,771

 

Interest on loans held for sale

 

 

243

 

 

 

369

 

 

 

370

 

 

 

326

 

 

286

 

Interest on securities

 

 

2,065

 

 

 

2,001

 

 

 

2,003

 

 

 

2,035

 

 

2,079

 

Other interest and dividend income

 

 

4,659

 

 

 

2,516

 

 

 

2,667

 

 

 

2,935

 

 

803

 

Total interest and dividend income

 

 

66,904

 

 

 

64,385

 

 

 

63,164

 

 

 

60,800

 

 

55,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

26,899

 

 

 

27,310

 

 

 

25,039

 

 

 

20,062

 

 

15,913

 

Interest on borrowings

 

 

9,423

 

 

 

6,260

 

 

 

6,439

 

 

 

8,114

 

 

5,105

 

Interest on subordinated debentures

 

 

—

 

 

 

1,122

 

 

 

606

 

 

 

524

 

 

523

 

Total interest expense

 

 

36,322

 

 

 

34,692

 

 

 

32,084

 

 

 

28,700

 

 

21,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

30,582

 

 

 

29,693

 

 

 

31,080

 

 

 

32,100

 

 

34,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for credit losses

 

 

(168

)

 

 

644

 

 

 

(113

)

 

 

3,283

 

 

1,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for credit losses

 

 

30,750

 

 

 

29,049

 

 

 

31,193

 

 

 

28,817

 

 

32,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

2,013

 

 

 

2,176

 

 

 

2,704

 

 

 

3,300

 

 

2,224

 

Changes in mortgage servicing rights fair value

 

 

54

 

 

 

(3,553

)

 

 

125

 

 

 

436

 

 

(1,692

)

Other

 

 

2,276

 

 

 

2,301

 

 

 

2,270

 

 

 

2,312

 

 

2,216

 

Total mortgage banking income

 

 

4,343

 

 

 

924

 

 

 

5,099

 

 

 

6,048

 

 

2,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

4,983

 

 

 

5,178

 

 

 

5,133

 

 

 

5,012

 

 

4,733

 

Income on retirement plan annuities

 

 

145

 

 

 

147

 

 

 

146

 

 

 

128

 

 

119

 

Bank-owned life insurance income

 

 

746

 

 

 

1,207

 

 

 

531

 

 

 

511

 

 

500

 

Other income

 

 

524

 

 

 

1,448

 

 

 

689

 

 

 

963

 

 

590

 

Total noninterest income

 

 

10,741

 

 

 

8,904

 

 

 

11,598

 

 

 

12,662

 

 

8,690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

17,636

 

 

 

19,199

 

 

 

18,699

 

 

 

18,220

 

 

17,799

 

Occupancy and equipment

 

 

4,781

 

 

 

4,670

 

 

 

4,430

 

 

 

4,633

 

 

5,040

 

Data processing

 

 

2,479

 

 

 

2,474

 

 

 

2,548

 

 

 

2,403

 

 

2,346

 

Loan (income) expense

 

 

371

 

 

 

(317

)

 

 

385

 

 

 

417

 

 

313

 

Marketing

 

 

816

 

 

 

811

 

 

 

794

 

 

 

925

 

 

1,181

 

Professional fees

 

 

1,457

 

 

 

1,690

 

 

 

1,374

 

 

 

1,114

 

 

1,501

 

Deposit insurance

 

 

1,164

 

 

 

795

 

 

 

1,004

 

 

 

1,176

 

 

510

 

Goodwill impairment

 

 

—

 

 

 

10,760

 

 

 

—

 

 

 

—

 

 

—

 

Other expenses

 

 

3,046

 

 

 

3,132

 

 

 

2,638

 

 

 

2,837

 

 

2,819

 

Total noninterest expenses

 

 

31,750

 

 

 

43,214

 

 

 

31,872

 

 

 

31,725

 

 

31,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

9,741

 

 

 

(5,261

)

 

 

10,919

 

 

 

9,754

 

 

9,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

2,441

 

 

 

1,850

 

 

 

2,507

 

 

 

2,275

 

 

2,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

7,300

 

 

$

(7,111

)

 

$

8,412

 

 

$

7,479

 

$

7,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.17

 

 

$

(0.17

)

 

$

0.20

 

 

$

0.17

 

$

0.16

 

Diluted

 

$

0.17

 

 

$

(0.17

)

 

$

0.20

 

 

$

0.17

 

$

0.16

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

41,912,421

 

 

 

42,111,872

 

 

 

42,876,893

 

 

 

43,063,507

 

 

44,857,224

 

Diluted

 

 

42,127,037

 

 

 

42,299,858

 

 

 

42,983,477

 

 

 

43,133,455

 

 

45,284,240

 

 

HarborOne Bancorp, Inc.

Average Balances and Yield Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost (8)

 

Balance

 

Interest

 

Cost (8)

 

Balance

 

Interest

 

Cost (8)

 

 

 

(dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

372,787

 

$

2,065

 

2.23

%

$

370,683

 

$

2,001

 

2.14

%

$

387,303

 

$

2,079

 

2.18

%

Other interest-earning assets

 

 

356,470

 

 

4,659

 

5.26

 

 

205,929

 

 

2,516

 

4.85

 

 

63,426

 

 

803

 

5.13

 

Loans held for sale

 

 

14,260

 

 

243

 

6.85

 

 

20,010

 

 

369

 

7.32

 

 

18,108

 

 

286

 

6.41

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)(3)

 

 

3,040,835

 

 

41,653

 

5.51

 

 

3,005,840

 

 

41,263

 

5.45

 

 

2,901,464

 

 

36,837

 

5.15

 

Residential real estate loans (3)(4)

 

 

1,700,694

 

 

18,175

 

4.30

 

 

1,707,978

 

 

18,103

 

4.21

 

 

1,647,109

 

 

15,616

 

3.85

 

Consumer loans (3)

 

 

20,539

 

 

358

 

7.01

 

 

22,324

 

 

384

 

6.82

 

 

36,310

 

 

519

 

5.80

 

Total loans

 

 

4,762,068

 

 

60,186

 

5.08

 

 

4,736,142

 

 

59,750

 

5.01

 

 

4,584,883

 

 

52,972

 

4.69

 

Total interest-earning assets

 

 

5,505,585

 

 

67,153

 

4.91

 

 

5,332,764

 

 

64,636

 

4.81

 

 

5,053,720

 

 

56,140

 

4.51

 

Noninterest-earning assets

 

 

299,153

 

 

 

 

 

 

 

313,729

 

 

 

 

 

 

 

313,309

 

 

 

 

 

 

Total assets

 

$

5,804,738

 

 

 

 

 

 

$

5,646,493

 

 

 

 

 

 

$

5,367,029

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

1,186,201

 

 

5,523

 

1.87

 

$

1,307,774

 

 

6,875

 

2.09

 

$

1,459,392

 

 

5,445

 

1.51

 

NOW accounts

 

 

289,902

 

 

75

 

0.10

 

 

290,147

 

 

122

 

0.17

 

 

275,801

 

 

36

 

0.05

 

Money market accounts

 

 

994,353

 

 

9,313

 

3.77

 

 

963,223

 

 

9,288

 

3.83

 

 

824,694

 

 

5,238

 

2.58

 

Certificates of deposit

 

 

855,070

 

 

8,554

 

4.02

 

 

859,274

 

 

8,329

 

3.85

 

 

552,636

 

 

2,685

 

1.97

 

Brokered deposits

 

 

356,459

 

 

3,434

 

3.87

 

 

288,449

 

 

2,696

 

3.71

 

 

330,426

 

 

2,509

 

3.08

 

Total interest-bearing deposits

 

 

3,681,985

 

 

26,899

 

2.94

 

 

3,708,867

 

 

27,310

 

2.92

 

 

3,442,949

 

 

15,913

 

1.87

 

Borrowings

 

 

764,623

 

 

9,423

 

4.96

 

 

507,520

 

 

6,260

 

4.89

 

 

448,096

 

 

5,105

 

4.62

 

Subordinated debentures

 

 

—

 

 

—

 

-

 

 

22,614

 

 

1,122

 

19.68

 

 

34,298

 

 

523

 

6.18

 

Total borrowings

 

 

764,623

 

 

9,423

 

4.96

 

 

530,134

 

 

7,382

 

5.52

 

 

482,394

 

 

5,628

 

4.73

 

Total interest-bearing liabilities

 

 

4,446,608

 

 

36,322

 

3.29

 

 

4,239,001

 

 

34,692

 

3.25

 

 

3,925,343

 

 

21,541

 

2.23

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

654,436

 

 

 

 

 

 

 

683,548

 

 

 

 

 

 

 

721,536

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

119,289

 

 

 

 

 

 

 

137,239

 

 

 

 

 

 

 

101,820

 

 

 

 

 

 

Total liabilities

 

 

5,220,333

 

 

 

 

 

 

 

5,059,788

 

 

 

 

 

 

 

4,748,699

 

 

 

 

 

 

Total stockholders' equity

 

 

584,405

 

 

 

 

 

 

 

586,705

 

 

 

 

 

 

 

618,330

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

5,804,738

 

 

 

 

 

 

$

5,646,493

 

 

 

 

 

 

$

5,367,029

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

30,831

 

 

 

 

 

 

 

29,944

 

 

 

 

 

 

 

34,599

 

 

 

Tax equivalent interest rate spread (5)

 

 

 

 

 

 

 

1.62

%

 

 

 

 

 

 

1.56

%

 

 

 

 

 

 

2.28

%

Less: tax equivalent adjustment

 

 

 

 

 

249

 

 

 

 

 

 

 

251

 

 

 

 

 

 

 

201

 

 

 

Net interest income as reported

 

 

 

 

$

30,582

 

 

 

 

 

 

$

29,693

 

 

 

 

 

 

$

34,398

 

 

 

Net interest-earning assets (6)

 

$

1,058,977

 

 

 

 

 

 

$

1,093,763

 

 

 

 

 

 

$

1,128,377

 

 

 

 

 

 

Net interest margin (7)

 

 

 

 

 

 

 

2.23

%

 

 

 

 

 

 

2.21

%

 

 

 

 

 

 

2.76

%

Tax equivalent effect

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

 

0.02

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

2.25

%

 

 

 

 

 

 

2.23

%

 

 

 

 

 

 

2.78

%

Ratio of interest-earning assets to interest-bearing liabilities

 

 

123.82

%

 

 

 

 

 

 

125.80

%

 

 

 

 

 

 

128.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

4,336,421

 

$

26,899

 

 

 

$

4,392,415

 

$

27,310

 

 

 

$

4,164,485

 

$

15,913

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

2.49

%

 

 

 

 

 

 

2.47

%

 

 

 

 

 

 

1.55

%

Total funding liabilities, including demand deposits

 

$

5,101,044

 

$

36,322

 

 

 

$

4,922,549

 

$

34,692

 

 

 

$

4,646,879

 

$

21,541

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

2.86

%

 

 

 

 

 

 

2.80

%

 

 

 

 

 

 

1.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes securities available for sale and securities held to maturity.

 

(2) Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis.

 

(3) Includes nonaccruing loan balances and interest received on such loans.

 

(4) Includes the basis adjustments of certain loans included in fair value hedging relationships.

 

(5) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

 

(6) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

 

(7) Net interest margin represents net interest income divided by average total interest-earning assets.

 

(8) Annualized.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances - Trend - Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31

 

 

 

2024

 

2023

 

2023

 

2023

 

2023

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

372,787

 

$

370,683

 

$

375,779

 

$

381,762

 

$

387,303

 

Other interest-earning assets

 

 

356,470

 

 

205,929

 

 

207,234

 

 

238,891

 

 

63,426

 

Loans held for sale

 

 

14,260

 

 

20,010

 

 

20,919

 

 

19,614

 

 

18,108

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)(3)

 

 

3,040,835

 

 

3,005,840

 

 

2,980,817

 

 

2,938,292

 

 

2,901,464

 

Residential real estate loans (3)(4)

 

 

1,700,694

 

 

1,707,978

 

 

1,700,383

 

 

1,682,860

 

 

1,647,109

 

Consumer loans (3)

 

 

20,539

 

 

22,324

 

 

25,126

 

 

29,025

 

 

36,310

 

Total loans

 

 

4,762,068

 

 

4,736,142

 

 

4,706,326

 

 

4,650,177

 

 

4,584,883

 

Total interest-earning assets

 

 

5,505,585

 

 

5,332,764

 

 

5,310,258

 

 

5,290,444

 

 

5,053,720

 

Noninterest-earning assets

 

 

299,153

 

 

313,729

 

 

314,030

 

 

305,132

 

 

313,309

 

Total assets

 

$

5,804,738

 

$

5,646,493

 

$

5,624,288

 

$

5,595,576

 

$

5,367,029

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

1,186,201

 

$

1,307,774

 

$

1,360,728

 

$

1,421,622

 

$

1,459,392

 

NOW accounts

 

 

289,902

 

 

290,147

 

 

274,329

 

 

280,501

 

 

275,801

 

Money market accounts

 

 

994,353

 

 

963,223

 

 

910,694

 

 

802,373

 

 

824,694

 

Certificates of deposit

 

 

855,070

 

 

859,274

 

 

818,182

 

 

708,087

 

 

552,636

 

Brokered deposits

 

 

356,459

 

 

288,449

 

 

287,428

 

 

281,614

 

 

330,426

 

Total interest-bearing deposits

 

 

3,681,985

 

 

3,708,867

 

 

3,651,361

 

 

3,494,197

 

 

3,442,949

 

Borrowings

 

 

764,623

 

 

507,520

 

 

508,001

 

 

666,345

 

 

448,096

 

Subordinated debentures

 

 

—

 

 

22,614

 

 

34,364

 

 

34,331

 

 

34,298

 

Total borrowings

 

 

764,623

 

 

530,134

 

 

542,365

 

 

700,676

 

 

482,394

 

Total interest-bearing liabilities

 

 

4,446,608

 

 

4,239,001

 

 

4,193,726

 

 

4,194,873

 

 

3,925,343

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

654,436

 

 

683,548

 

 

705,009

 

 

712,081

 

 

721,536

 

Other noninterest-bearing liabilities

 

 

119,289

 

 

137,239

 

 

126,742

 

 

88,363

 

 

101,820

 

Total liabilities

 

 

5,220,333

 

 

5,059,788

 

 

5,025,477

 

 

4,995,317

 

 

4,748,699

 

Total stockholders' equity

 

 

584,405

 

 

586,705

 

 

598,811

 

 

600,259

 

 

618,330

 

Total liabilities and stockholders' equity

 

$

5,804,738

 

$

5,646,493

 

$

5,624,288

 

$

5,595,576

 

$

5,367,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Yield Trend - Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

 

2024

 

2023

 

2023

 

2023

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

 

2.23

%

 

2.14

%

 

2.11

%

 

2.14

%

 

2.18

%

Other interest-earning assets

 

 

5.26

%

 

4.85

%

 

5.11

%

 

4.93

%

 

5.13

%

Loans held for sale

 

 

6.85

%

 

7.32

%

 

7.02

%

 

6.67

%

 

6.41

%

Commercial loans (2)(3)

 

 

5.51

%

 

5.45

%

 

5.38

%

 

5.30

%

 

5.15

%

Residential real estate loans (3)(4)

 

 

4.30

%

 

4.21

%

 

4.09

%

 

3.92

%

 

3.85

%

Consumer loans (3)

 

 

7.01

%

 

6.82

%

 

6.51

%

 

5.79

%

 

5.80

%

Total loans

 

 

5.08

%

 

5.01

%

 

4.92

%

 

4.81

%

 

4.69

%

Total interest-earning assets

 

 

4.91

%

 

4.81

%

 

4.74

%

 

4.63

%

 

4.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

1.87

%

 

2.09

%

 

1.98

%

 

1.74

%

 

1.51

%

NOW accounts

 

 

0.10

%

 

0.17

%

 

0.11

%

 

0.08

%

 

0.05

%

Money market accounts

 

 

3.77

%

 

3.83

%

 

3.64

%

 

3.13

%

 

2.58

%

Certificates of deposit

 

 

4.02

%

 

3.85

%

 

3.50

%

 

2.99

%

 

1.97

%

Brokered deposits

 

 

3.87

%

 

3.71

%

 

3.60

%

 

3.29

%

 

3.08

%

Total interest-bearing deposits

 

 

2.94

%

 

2.92

%

 

2.72

%

 

2.30

%

 

1.87

%

Borrowings

 

 

4.96

%

 

4.89

%

 

5.03

%

 

4.88

%

 

4.62

%

Subordinated debentures

 

 

-

%

 

19.68

%

 

7.00

%

 

6.12

%

 

6.18

%

Total borrowings

 

 

4.96

%

 

5.52

%

 

5.15

%

 

4.94

%

 

4.73

%

Total interest-bearing liabilities

 

 

3.29

%

 

3.25

%

 

3.04

%

 

2.74

%

 

2.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes securities available for sale and securities held to maturity.

 

(2) Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis.

 

(3) Includes nonaccruing loan balances and interest received on such loans.

 

(4) Includes the basis adjustments of certain loans included in fair value hedging relationships.

 

 

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Performance Ratios (annualized):

 

2024

 

2023

 

2023

 

2023

 

2023

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

7,300

 

$

(7,111)

 

$

8,411

 

$

7,450

 

$

7,297

 

Less: Goodwill impairment charge

 

 

—

 

 

10,760

 

 

—

 

 

—

 

 

—

 

Net income, excluding goodwill impairment charge(1)

 

$

7,300

 

$

3,649

 

$

8,411

 

$

7,450

 

$

7,297

 

Average Assets

 

$

5,804,738

 

$

5,646,493

 

$

5,624,288

 

$

5,595,576

 

$

5,367,029

 

Average Equity

 

$

584,405

 

$

586,705

 

$

598,811

 

$

600,258

 

$

618,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA)

 

 

0.50

%

 

(0.50)

%

 

0.60

%

 

0.54

%

 

0.54

%

Return on average assets (ROAA), excluding goodwill impairment charge(2)

 

 

0.50

%

 

0.26

%

 

0.60

%

 

0.54

%

 

0.54

%

Return on average equity (ROAE)

 

 

5.00

%

 

(4.85)

%

 

5.62

%

 

4.98

%

 

4.72

%

Return on average equity (ROAE), excluding goodwill impairment charge(3)

 

 

5.00

%

 

2.49

%

 

5.62

%

 

4.98

%

 

4.72

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

$

31,750

 

$

43,214

 

$

31,872

 

$

31,725

 

$

31,509

 

Less: Amortization of other intangible assets

 

 

189

 

 

189

 

 

189

 

 

189

 

 

189

 

Total adjusted noninterest expense

 

 

31,561

 

 

43,025

 

 

31,683

 

 

31,536

 

 

31,320

 

Less: Goodwill impairment charge

 

 

—

 

 

10,760

 

 

—

 

 

—

 

 

—

 

Total adjusted noninterest expense, excluding goodwill impairment(4)

 

$

31,561

 

$

32,265

 

$

31,683

 

$

31,536

 

$

31,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

30,582

 

$

29,693

 

$

31,080

 

$

32,100

 

$

34,398

 

Total noninterest income

 

 

10,741

 

 

8,904

 

 

11,598

 

 

12,662

 

 

8,690

 

Total revenue

 

$

41,323

 

$

38,597

 

$

42,678

 

$

44,762

 

$

43,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (5)

 

 

76.38

%

 

111.47

%

 

74.24

%

 

70.45

%

 

72.69

%

Efficiency ratio, excluding goodwill impairment charge(6)

 

 

76.38

%

 

83.59

%

 

74.24

%

 

70.45

%

 

72.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) This non-GAAP measure represents net income, excluding goodwill impairment charge

 

(2) This non-GAAP measure represents net income, excluding goodwill impairment charge to average assets

 

(3) This non-GAAP measure represents net income, excluding goodwill impairment charge to average equity

 

(4) This non-GAAP measure represents adjusted noninterest expense, excluding goodwill impairment charge

 

(5) This non-GAAP measure represents adjusted noninterest expense divided by total revenue

 

(6) This non-GAAP measure represents adjusted noninterest expense, excluding goodwill impairment divided by total revenue

 

 

 

At or for the Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Asset Quality

 

2024

 

2023

 

2023

 

2023

 

2023

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

12,160

 

$

17,582

 

$

18,795

 

$

20,234

 

$

12,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.21

%

 

0.31

%

 

0.33

%

 

0.36

%

 

0.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to total loans

 

 

1.01

%

 

1.01

%

 

1.02

%

 

1.02

%

 

1.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

$

125

 

$

1,311

 

$

(18)

 

$

2,671

 

$

(11)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized net charge-offs (recoveries)/average loans

 

 

0.01

%

 

0.11

%

 

—

%

 

0.23

%

 

—

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to nonperforming loans

 

 

396.27

%

 

273.92

%

 

257.21

%

 

236.62

%

 

383.50

%

 

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Capital and Share Related

 

2024

 

2023

 

2023

 

2023

 

2023

 

(dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock outstanding

 

 

45,055,006

 

 

45,401,224

 

 

45,915,364

 

 

46,575,478

 

 

47,063,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

12.82

 

$

12.86

 

$

12.73

 

$

12.79

 

$

12.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

577,683

 

$

583,759

 

$

584,634

 

$

595,532

 

$

599,794

 

Less: Goodwill

 

 

59,042

 

 

59,042

 

 

69,802

 

 

69,802

 

 

69,802

 

Less: Other intangible assets (1)

 

 

1,326

 

 

1,515

 

 

1,704

 

 

1,893

 

 

2,082

 

Tangible common equity

 

$

517,315

 

$

523,202

 

$

513,128

 

$

523,837

 

$

527,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (2)

 

$

11.48

 

$

11.52

 

$

11.18

 

$

11.25

 

$

11.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,862,222

 

$

5,667,896

 

$

5,664,387

 

$

5,659,254

 

$

5,572,858

 

Less: Goodwill

 

 

59,042

 

 

59,042

 

 

69,802

 

 

69,802

 

 

69,802

 

Less: Other intangible assets

 

 

1,326

 

 

1,515

 

 

1,704

 

 

1,893

 

 

2,082

 

Tangible assets

 

$

5,801,854

 

$

5,607,339

 

$

5,592,881

 

$

5,587,559

 

$

5,500,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity / tangible assets (3)

 

 

8.92

%

 

9.33

%

 

9.17

%

 

9.38

%

 

9.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Other intangible assets are core deposit intangibles.

(2) This non-GAAP ratio is total stockholders' equity less goodwill and intangible assets divided by common stock outstanding.

(3) This non-GAAP ratio is total stockholders' equity less goodwill and intangible assets to total assets less goodwill and intangible assets.

 

HarborOne Bancorp, Inc.

Segments Key Financial Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

Statements of Net Income for HarborOne Bank Segment:

 

March 31,
2024

December 31,
2023

September 30,
2023

June 30,
2023

March 31,
2023

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

30,485

 

$

30,637

 

$

31,468

 

$

32,490

 

$

34,562

 

Provision (benefit) for credit losses

 

 

(168

)

 

644

 

 

(113

)

 

3,283

 

 

1,866

 

Net interest and dividend income, after provision for credit losses

 

 

30,653

 

 

29,993

 

 

31,581

 

 

29,207

 

 

32,696

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

Intersegment loss

 

 

(236

)

 

(159

)

 

(198

)

 

(358

)

 

(348

)

Changes in mortgage servicing rights fair value

 

 

(32

)

 

(257

)

 

18

 

 

29

 

 

(136

)

Other

 

 

180

 

 

185

 

 

188

 

 

195

 

 

201

 

Total mortgage banking (loss) income

 

 

(88

)

 

(231

)

 

8

 

 

(134

)

 

(283

)

Other noninterest income:

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

4,983

 

 

5,178

 

 

5,132

 

 

5,013

 

 

4,733

 

Income on retirement plan annuities

 

 

145

 

 

147

 

 

146

 

 

128

 

 

119

 

Bank-owned life insurance income

 

 

746

 

 

1,207

 

 

531

 

 

511

 

 

500

 

Other income

 

 

517

 

 

1,405

 

 

694

 

 

962

 

 

590

 

Total noninterest income

 

 

6,303

 

 

7,706

 

 

6,511

 

 

6,480

 

 

5,659

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

15,307

 

 

16,535

 

 

15,238

 

 

15,067

 

 

14,764

 

Occupancy and equipment

 

 

4,150

 

 

4,038

 

 

3,828

 

 

3,910

 

 

4,295

 

Data processing

 

 

2,470

 

 

2,462

 

 

2,527

 

 

2,355

 

 

2,305

 

Loan expense

 

 

71

 

 

153

 

 

128

 

 

96

 

 

87

 

Marketing

 

 

783

 

 

751

 

 

709

 

 

787

 

 

1,063

 

Professional fees

 

 

1,056

 

 

1,404

 

 

914

 

 

699

 

 

996

 

Deposit insurance

 

 

1,164

 

 

794

 

 

1,004

 

 

1,176

 

 

510

 

Other expenses

 

 

2,406

 

 

2,476

 

 

1,924

 

 

2,103

 

 

2,170

 

Total noninterest expenses

 

 

27,407

 

 

28,613

 

 

26,272

 

 

26,193

 

 

26,190

 

Less: Amortization of other intangible assets

 

 

189

 

 

189

 

 

190

 

 

189

 

 

189

 

Total adjusted noninterest expense

 

 

27,218

 

 

28,424

 

 

26,082

 

 

26,004

 

 

26,001

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

9,549

 

 

9,086

 

 

11,820

 

 

9,494

 

 

12,165

 

Provision for income taxes

 

 

2,386

 

 

2,535

 

 

2,716

 

 

2,193

 

 

3,115

 

Net income

 

$

7,163

 

$

6,551

 

$

9,104

 

$

7,301

 

$

9,050

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (1) - QTD

 

 

73.99

%

 

74.13

%

 

68.67

%

 

66.73

%

 

64.65

%

Efficiency ratio (1) - YTD

 

 

73.99

%

 

68.49

%

 

66.64

%

 

65.67

%

 

64.65

%

 

 

 

 

 

 

 

 

 

 

 

 

(1) This non-GAAP measure represents adjusted noninterest expense divided by total revenue

 

HarborOne Bancorp, Inc.

Segments Key Financial Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

Statements of Net Income for HarborOne Mortgage Segment:

 

March 31,
2024

 

December 31,
2023

 

September 30,
2023

 

June 30,
2023

 

March 31,
2023

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

80

 

$

160

 

$

199

 

$

120

 

$

327

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

2,013

 

 

2,176

 

 

2,704

 

 

3,300

 

 

2,224

 

Intersegment gain

 

 

308

 

 

56

 

 

249

 

 

90

 

 

454

 

Changes in mortgage servicing rights fair value

 

 

86

 

 

(3,296)

 

 

107

 

 

407

 

 

(1,556)

 

Other

 

 

2,097

 

 

2,116

 

 

2,082

 

 

2,117

 

 

2,015

 

Total mortgage banking income

 

 

4,504

 

 

1,052

 

 

5,142

 

 

5,914

 

 

3,137

 

Other noninterest income (loss)

 

 

10

 

 

2

 

 

(4)

 

 

—

 

 

—

 

Total noninterest income

 

 

4,514

 

 

1,054

 

 

5,138

 

 

5,914

 

 

3,137

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

2,919

 

 

3,217

 

 

4,014

 

 

3,700

 

 

3,575

 

Occupancy and equipment

 

 

604

 

 

596

 

 

567

 

 

688

 

 

701

 

Data processing

 

 

9

 

 

13

 

 

21

 

 

48

 

 

41

 

Loan expense

 

 

304

 

 

(470)

 

 

258

 

 

321

 

 

226

 

Marketing

 

 

33

 

 

60

 

 

85

 

 

138

 

 

118

 

Professional fees

 

 

132

 

 

120

 

 

155

 

 

180

 

 

257

 

Goodwill impairment

 

 

—

 

 

10,760

 

 

—

 

 

—

 

 

—

 

Other expenses

 

 

310

 

 

371

 

 

390

 

 

418

 

 

404

 

Total noninterest expenses

 

 

4,311

 

 

14,667

 

 

5,490

 

 

5,493

 

 

5,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

283

 

 

(13,453)

 

 

(153)

 

 

541

 

 

(1,858)

 

Income tax (benefit) provision

 

 

60

 

 

(596)

 

 

(15)

 

 

232

 

 

(565)

 

Net income (loss)

 

$

223

 

$

(12,857)

 

$

(138)

 

$

309

 

$

(1,293)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (1) - QTD

 

 

93.84

%

 

1,208.15

%

 

102.87

%

 

91.03

%

 

153.64

%

Efficiency ratio, excluding goodwill impairment (2) - QTD

 

 

93.84

%

 

321.83

%

 

102.87

%

 

91.03

%

 

153.64

%

Efficiency ratio (1) - YTD

 

 

93.84

%

 

192.98

%

 

109.91

%

 

113.87

%

 

153.64

%

Efficiency ratio, excluding goodwill impairment (2) - YTD

 

 

93.84

%

 

125.94

%

 

109.91

%

 

113.87

%

 

153.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) This non-GAAP measure represents noninterest expense divided by total revenue

 

(2) This non-GAAP measure represents noninterest expense, excluding goodwill impairment divided by total revenue

 

Category: Earnings Release