HarborOne Bancorp, Inc. Announces 2023 First Quarter Earnings

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 $0.16 per diluted share, for the first quarter of 2023, compared to net income of $9.6 million, or $0.21 per diluted share, for the preceding quarter and net income of $12.3 million, or $0.25 per diluted share, for the same period last year.

Selected Financial Highlights:

  • Recent Company-wide cost savings measures and organizational efficiencies will provide approximately $4.1 million in annual cost savings; a branch closure and a branch relocation will provide additional long-term expense savings.
  • Returned $3.3 million of capital to shareholders via dividends and increased quarterly dividend by 7%.
  • Continued share repurchase program returning $26.8 million to shareholders, representing 2.0 million shares.
  • Disciplined underwriting continues to provide strong credit quality, with nonperforming loans to total loans of 0.27% compared to 0.32% on a linked-quarter basis.
  • Loan growth of $73.0 million, or 1.6%, and deposit growth of $52.2 million, or 1.2%, on a linked-quarter basis.

“While significant challenges presented themselves in Q1, I have tremendous confidence in our ability to manage through the current environment. Our excellent credit quality, strong capital position, and deposit growth provide the foundation for that confidence,” said Joseph F. Casey, President and CEO. “Our team remains highly focused on ensuring stability in our deposit base. The Company has been proactive in reducing expenses at both HarborOne Mortgage and the Bank and will continue to look for additional opportunities. Our resilience and strategic discipline position us well to drive long-term value for our shareholders.”

Net Interest Income

The Company’s net interest and dividend income was $34.4 million for the quarter ended March 31, 2023, compared to $39.2 million for the quarter ended December 31, 2022, and $33.3 million for the quarter ended March 31, 2022. The tax equivalent interest rate spread and net interest margin were 2.28% and 2.78%, respectively, for the quarter ended March 31, 2023, compared to 2.88% and 3.23%, respectively, for the quarter ended December 31, 2022, and 3.12% and 3.21%, respectively, for the quarter ended March 31, 2022.

On a linked-quarter basis, the decreases in net interest and dividend income, tax equivalent interest rate spread, and net interest margin primarily reflect an increase in interest-bearing liabilities, with higher cost of funding, partially offset by increased loan balances and yields with liability repricing outpacing assets. The cost of funds was 188 basis points for the quarter ended March 31, 2023, compared to 114 basis points for the preceding quarter.

The $1.1 million increase in net interest and dividend income from the prior year quarter reflects an increase of $20.3 million, or 57.1%, in total interest and dividend income and an increase of $19.2 million, or 823.7%, in total interest expense. The changes reflect rate and volume changes in both interest-bearing assets and liabilities. The yield on interest-earning assets increased 108 basis points, while the average balance increased $849.7 million, and the cost of interest-bearing liabilities increased 192 basis points, while the average balance increased $887.5 million.

Noninterest Income

Total noninterest income decreased $1.2 million, or 12.2%, to $8.7 million for the quarter ended March 31, 2023, from $9.9 million for the quarter ended December 31, 2022. Mortgage loan closings for the quarter ended March 31, 2023 were $125.6 million with a gain on loan sales of $2.2 million, compared to $222.4 million in mortgage closings and $2.3 million in gain on sales for the preceding quarter as higher gain-on-sale margins help offset the seasonal loss in production volume. Deposit account fees were $4.7 million for the quarter ended March 31, 2023, compared to $5.0 million for the quarter ended December 31, 2022. Other income for the quarter ended March 31, 2023 decreased $1.7 million, primarily reflecting a $1.1 million decrease in swap fee income.

The decrease in the fair value of mortgage servicing rights for the three months ended March 31, 2023 was $1.3 million, as compared to a decrease of $2.1 million in the fair value of mortgage servicing rights for the three months ended December 31, 2022. The valuation was negatively impacted by key benchmark mortgage rates used in the valuation. The impact of principal payments on the underlying mortgages on the mortgage servicing rights was $371,000 and $570,000 for the quarters ended March 31, 2023 and December 31, 2022, respectively.

Total noninterest income decreased $10.4 million, or 54.4%, compared to the quarter ended March 31, 2022, primarily due to a $10.4 million, or 79.1%, decrease in mortgage banking income, driven by the decrease in loan demand as a result of interest rate increases. The prior year quarter also reflected a $6.1 million increase in the fair value of mortgage servicing rights.

Noninterest Expense

Total noninterest expenses were $31.5 million for the quarter ended March 31, 2023, a decrease of $3.1 million, or 9.0%, from the quarter ended December 31, 2022. Compensation and benefits decreased $2.3 million primarily reflecting decreased mortgage origination commission and incentive accruals. Other expenses decreased $1.6 million, or 35.7% for the quarter ended March 31 2023, primarily as a result of a legal settlement accrued for in the fourth quarter of 2022.

Total noninterest expenses decreased $3.3 million, or 9.5%, from the quarter ended March 31, 2022. Compensation and benefits decreased $2.9 million primarily reflecting decreased mortgage origination commission and incentive accruals.

During the quarter, management evaluated potential cost saving measures across the Company. This resulted in a reduction in force at HarborOne Mortgage, LLC (“HarborOne Mortgage”) during the first quarter with an expected annual cost savings of $1.2 million and recognized severance expense of $249,000. During the second quarter of 2023 the Bank took further cost savings measures and organizational efficiencies with an estimated annual savings of $2.9 million and will recognize severance expense of $452,000. Additionally, the Bank sought and obtained regulatory approval in 2023 to close one branch and relocate another branch that will both provide additional long-term expense savings.

Income Tax Provision

The effective tax rate for the quarter ended March 31, 2023 was 24.9% compared to 22.4% for the quarter ended December 31, 2022. The 2022 effective tax rate was impacted by a tax benefit recorded for Industrial Revenue Bonds and a reserve release upon the expiration of the statute of limitations.

Asset Quality and Allowance for Credit Losses

Disciplined underwriting and active loan management continues to result in strong credit quality performance. Total nonperforming assets improved to $12.3 million at March 31, 2023, compared to $14.8 million at December 31, 2022 and $26.1 million at March 31, 2022. Nonperforming assets as a percentage of total assets were 0.22% at March 31, 2023, 0.28% at December 31, 2022, and 0.57% at March 31, 2022. During 2022, two large commercial credits were resolved, reducing nonperforming assets significantly.

The provision for funded loan credit losses for the quarter ended March 31, 2023 was $1.7 million and reflects provisioning for loan growth and increased economic uncertainty. Net recoveries totaled $11,000 for the quarter ended March 31, 2023. Net charge-offs totaled $2.1 million, or 0.19% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2022, and net charge-offs totaled $2.7 million, or 0.30% of average loans outstanding on an annualized basis, for the quarter ended March 31, 2022.

The allowance for credit losses (“ACL”) was $47.0 million, or 1.02% of total loans, at March 31, 2023, compared to $45.2 million, or 0.99% of total loans, at December 31, 2022 and $41.8 million, or 1.12% of total loans, at March 31, 2022. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheets, amounted to $5.0 million at March 31, 2023 as compared to $4.9 million at December 31, 2022 and $3.8 million at March 31, 2022.

We believe that we are well positioned to withstand any downturn in the credit cycle should one materialize. We continue to closely monitor our loan portfolio for signs of deterioration. Management is focused on commercial real estate in light of speculation that commercial real estate values may deteriorate as the market adjusts to higher vacancies and rates. Our commercial real estate portfolio is centered in New England with approximately 75% in Massachusetts and Rhode Island. Approximately 60% of commercial real estate loans are fixed-rate loans with limited near-term maturity risk.

Management has also identified certain sectors within the commercial real estate segment that may be particularly susceptible to increased credit risk as a result of trends that were precipitated by the COVID-19 pandemic and may be exacerbated by current economic conditions. This includes business-oriented hotels, non-anchored retail space and metro office space. As of March 31, 2023, business-oriented hotels loans included 12 loans with a total outstanding balance of $85.3 million, non-anchored retail space loans included 28 loans with a total outstanding balance of $40.2 million, and metro office space loans included two loans with a total outstanding balance of $14.8 million. As of March 31, 2023, there was one business-oriented hotel credit with a carrying value of $1.9 million that was rated substandard and on nonaccrual. This credit was provided a principal deferral in the third quarter of 2022. The other loans in these groups were performing in accordance with their terms.

Balance Sheet

Total assets increased $213.3 million, or 4.0%, to $5.57 billion at March 31, 2023, from $5.36 billion at December 31, 2022. The increase primarily reflects an increase of $152.5 million in short-term investments and a $73.0 million increase in loans. The increase in short-term investments reflects management’s pro-active liquidity-enhancing measures in response to financial industry concerns.

Available for sale securities were $303.1 million and $301.1 million at March 31, 2023 and December 31, 2022, respectively. The unrealized loss on securities available for sale decreased to $61.2 million as of March 31, 2023, as compared to $68.3 million of unrealized losses as of December 31, 2022. Securities held to maturity were $19.8 million, or 0.4% of total assets, with a fair value of $19.3 million.

Loans increased $73.0 million, or 1.6%, to $4.62 billion at March 31, 2023, from $4.55 billion at December 31, 2022. The increase in loans for the three months ended March 31, 2023 was primarily due to increases in commercial real estate loans of $36.4 million, commercial construction loans of $13.4 million, and residential real estate loans of $33.6 million, partially offset by decreases in commercial and industrial loans of $1.2 million and consumer loans of $9.2 million. Management continues to seek prudent commercial lending opportunities to deepen relationships with existing customers and develop new relationships with strong borrowers.

Total deposits were $4.24 billion at March 31, 2023 and $4.19 billion at December 31, 2022. Compared to the prior quarter, non-certificate accounts decreased $124.9 million, term certificate accounts increased $155.6 million, and brokered deposits increased $21.5 million. As of March 31, 2023, FDIC-insured deposits exceeded 70% of total deposits. Including Depositors Insurance Fund (“DIF”) excess insurance coverage that remains available until February 24, 2024, insured deposits are approximately 100% of total deposits. The Bank exited the DIF as of February 24, 2023; however, insurance remains in place for funds on deposit as of that date for one year or until maturity for term certificates, if that is a later date.

FHLB borrowings increased $190.0 million to $590.7 million at March 31, 2023 from $400.7 million at December 31, 2022. At March 31, 2023, FHLB borrowings were primarily short-term borrowings as the Bank utilized available credit to enhance liquidity. As of March 31, 2023, the Bank had $677.6 million in available borrowing capacity across multiple relationships.

Total stockholders’ equity was $599.8 million at March 31, 2023, compared to $617.0 million at December 31, 2022 and $649.1 million at March 31, 2022. Stockholders’ equity decreased 2.8% when compared to the prior quarter, as earnings were offset by share repurchases. The Company repurchased 2,033,192 shares at an average price of $13.19, including $0.13 per share of excise tax, during the three months ended March 31, 2023. A share repurchase program that commenced in the first quarter of 2023 is expected to be completed in the second quarter of 2023. Due to recent market volatility and increased economic uncertainty, share repurchase activity is expected to be reduced in the second quarter of 2023 compared to recent prior quarters. The tangible-common-equity-to-tangible-assets ratio was 9.60% at March 31, 2023, 10.31% at December 31, 2022, and 12.75% at March 31, 2022. At March 31, 2023, the Company and the Bank had strong capital positions, exceeded all regulatory capital requirements, and are considered well-capitalized.

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 31 full-service branches located in Massachusetts and Rhode Island, and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. HarborOne Bank also provides a range of educational services through “HarborOne U,” with classes on small business, financial literacy and personal enrichment at two campuses located adjacent to our Brockton and Mansfield locations. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, is a full-service mortgage lender with 24 offices in Maine, Massachusetts, New Jersey, Rhode Island, and New Hampshire, and is licensed to lend in six additional 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 customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; 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 future 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 the efficiency ratio, 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)

 

2023

 

2022

 

2022

 

2022

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

38,989

 

 

$

39,712

 

 

$

39,910

 

 

$

35,843

 

 

$

41,862

 

Short-term investments

 

 

210,765

 

 

 

58,305

 

 

 

46,044

 

 

 

48,495

 

 

 

97,870

 

Total cash and cash equivalents

 

 

249,754

 

 

 

98,017

 

 

 

85,954

 

 

 

84,338

 

 

 

139,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

303,059

 

 

 

301,149

 

 

 

304,852

 

 

 

334,398

 

 

 

361,529

 

Securities held to maturity, at amortized cost

 

 

19,838

 

 

 

19,949

 

 

 

15,000

 

 

 

10,000

 

 

 

 

Federal Home Loan Bank stock, at cost

 

 

23,589

 

 

 

20,071

 

 

 

15,973

 

 

 

5,625

 

 

 

5,931

 

Asset held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

678

 

Loans held for sale, at fair value

 

 

13,956

 

 

 

18,544

 

 

 

18,805

 

 

 

31,679

 

 

 

25,690

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

2,286,727

 

 

 

2,250,344

 

 

 

2,041,905

 

 

 

1,847,619

 

 

 

1,816,484

 

Commercial construction

 

 

212,689

 

 

 

199,311

 

 

 

185,062

 

 

 

158,762

 

 

 

154,059

 

Commercial and industrial

 

 

423,036

 

 

 

424,275

 

 

 

397,112

 

 

 

407,182

 

 

 

410,787

 

Total commercial loans

 

 

2,922,452

 

 

 

2,873,930

 

 

 

2,624,079

 

 

 

2,413,563

 

 

 

2,381,330

 

Residential real estate

 

 

1,667,934

 

 

 

1,634,319

 

 

 

1,520,809

 

 

 

1,423,074

 

 

 

1,252,920

 

Consumer

 

 

32,246

 

 

 

41,421

 

 

 

52,466

 

 

 

75,312

 

 

 

103,100

 

Loans

 

 

4,622,632

 

 

 

4,549,670

 

 

 

4,197,354

 

 

 

3,911,949

 

 

 

3,737,350

 

Less: Allowance for credit losses on loans

 

 

(46,994

)

 

 

(45,236

)

 

 

(44,621

)

 

 

(43,560

)

 

 

(41,765

)

Net loans

 

 

4,575,638

 

 

 

4,504,434

 

 

 

4,152,733

 

 

 

3,868,389

 

 

 

3,695,585

 

Mortgage servicing rights, at fair value

 

 

47,080

 

 

 

48,138

 

 

 

49,861

 

 

 

47,130

 

 

 

45,043

 

Goodwill

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

Other intangible assets

 

 

2,082

 

 

 

2,272

 

 

 

2,461

 

 

 

2,695

 

 

 

2,930

 

Other assets

 

 

268,060

 

 

 

277,169

 

 

 

272,202

 

 

 

249,988

 

 

 

244,405

 

Total assets

 

$

5,572,858

 

 

$

5,359,545

 

 

$

4,987,643

 

 

$

4,704,044

 

 

$

4,591,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposit accounts

 

$

726,548

 

 

$

762,576

 

 

$

795,945

 

 

$

775,154

 

 

$

771,172

 

NOW accounts

 

 

287,376

 

 

 

297,692

 

 

 

308,191

 

 

 

316,839

 

 

 

310,090

 

Regular savings and club accounts

 

 

1,455,318

 

 

 

1,468,172

 

 

 

1,289,825

 

 

 

1,282,913

 

 

 

1,218,656

 

Money market deposit accounts

 

 

796,008

 

 

 

861,704

 

 

 

889,517

 

 

 

885,673

 

 

 

864,316

 

Term certificate accounts

 

 

653,553

 

 

 

497,975

 

 

 

484,936

 

 

 

487,354

 

 

 

497,746

 

Brokered deposits

 

 

322,927

 

 

 

301,380

 

 

 

114,696

 

 

 

100,000

 

 

 

100,000

 

Total deposits

 

 

4,241,730

 

 

 

4,189,499

 

 

 

3,883,110

 

 

 

3,847,933

 

 

 

3,761,980

 

Short-term borrowed funds

 

 

425,000

 

 

 

385,000

 

 

 

330,000

 

 

 

90,000

 

 

 

 

Long-term borrowed funds

 

 

165,665

 

 

 

15,675

 

 

 

15,684

 

 

 

15,693

 

 

 

55,702

 

Subordinated debt

 

 

34,317

 

 

 

34,285

 

 

 

34,254

 

 

 

34,222

 

 

 

34,191

 

Other liabilities and accrued expenses

 

 

106,352

 

 

 

118,110

 

 

 

113,225

 

 

 

91,718

 

 

 

90,387

 

Total liabilities

 

 

4,973,064

 

 

 

4,742,569

 

 

 

4,376,273

 

 

 

4,079,566

 

 

 

3,942,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

597

 

 

 

596

 

 

 

593

 

 

 

593

 

 

 

591

 

Additional paid-in capital

 

 

483,831

 

 

 

483,031

 

 

 

480,617

 

 

 

479,519

 

 

 

477,302

 

Unearned compensation - ESOP

 

 

(27,164

)

 

 

(27,623

)

 

 

(28,083

)

 

 

(28,542

)

 

 

(29,002

)

Retained earnings

 

 

360,454

 

 

 

356,438

 

 

 

350,049

 

 

 

339,471

 

 

 

332,734

 

Treasury stock

 

 

(175,514

)

 

 

(148,384

)

 

 

(143,125

)

 

 

(132,296

)

 

 

(113,513

)

Accumulated other comprehensive loss

 

 

(42,410

)

 

 

(47,082

)

 

 

(48,681

)

 

 

(34,267

)

 

 

(19,047

)

Total stockholders' equity

 

 

599,794

 

 

 

616,976

 

 

 

611,370

 

 

 

624,478

 

 

 

649,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

5,572,858

 

 

$

5,359,545

 

 

$

4,987,643

 

 

$

4,704,044

 

 

$

4,591,325

 

 

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)

 

2023

 

2022

 

2022

 

2022

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

52,771

 

 

$

49,177

 

 

$

42,065

 

$

37,522

 

$

33,576

Interest on loans held for sale

 

 

286

 

 

 

334

 

 

 

377

 

 

331

 

 

264

Interest on securities

 

 

2,079

 

 

 

2,045

 

 

 

1,971

 

 

1,873

 

 

1,701

Other interest and dividend income

 

 

803

 

 

 

359

 

 

 

143

 

 

131

 

 

61

Total interest and dividend income

 

 

55,939

 

 

 

51,915

 

 

 

44,556

 

 

39,857

 

 

35,602

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

15,913

 

 

 

8,499

 

 

 

3,491

 

 

2,019

 

 

1,621

Interest on FHLB borrowings

 

 

5,105

 

 

 

3,703

 

 

 

1,209

 

 

119

 

 

188

Interest on subordinated debentures

 

 

523

 

 

 

524

 

 

 

524

 

 

524

 

 

523

Total interest expense

 

 

21,541

 

 

 

12,726

 

 

 

5,224

 

 

2,662

 

 

2,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

34,398

 

 

 

39,189

 

 

 

39,332

 

 

37,195

 

 

33,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

1,866

 

 

 

2,108

 

 

 

668

 

 

2,546

 

 

338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for credit losses

 

 

32,532

 

 

 

37,081

 

 

 

38,664

 

 

34,649

 

 

32,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

2,224

 

 

 

2,301

 

 

 

3,809

 

 

4,538

 

 

5,322

Changes in mortgage servicing rights fair value

 

 

(1,692

)

 

 

(2,631

)

 

 

1,816

 

 

862

 

 

5,285

Other

 

 

2,216

 

 

 

2,325

 

 

 

2,453

 

 

2,612

 

 

2,558

Total mortgage banking income

 

 

2,748

 

 

 

1,995

 

 

 

8,078

 

 

8,012

 

 

13,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

4,733

 

 

 

5,031

 

 

 

4,870

 

 

4,892

 

 

4,472

Income on retirement plan annuities

 

 

119

 

 

 

118

 

 

 

119

 

 

112

 

 

107

Bank-owned life insurance income

 

 

500

 

 

 

501

 

 

 

503

 

 

494

 

 

483

Other income

 

 

590

 

 

 

2,255

 

 

 

675

 

 

593

 

 

834

Total noninterest income

 

 

8,690

 

 

 

9,900

 

 

 

14,245

 

 

14,103

 

 

19,061

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

17,799

 

 

 

20,104

 

 

 

20,991

 

 

21,455

 

 

20,723

Occupancy and equipment

 

 

5,040

 

 

 

4,935

 

 

 

4,829

 

 

4,575

 

 

5,428

Data processing

 

 

2,346

 

 

 

2,359

 

 

 

2,311

 

 

2,259

 

 

2,241

Loan expense

 

 

313

 

 

 

169

 

 

 

355

 

 

385

 

 

478

Marketing

 

 

1,181

 

 

 

862

 

 

 

850

 

 

986

 

 

1,218

Professional fees

 

 

1,501

 

 

 

1,446

 

 

 

1,457

 

 

1,680

 

 

1,539

Deposit insurance

 

 

510

 

 

 

385

 

 

 

357

 

 

354

 

 

349

Other expenses

 

 

2,819

 

 

 

4,384

 

 

 

3,323

 

 

3,260

 

 

2,859

Total noninterest expenses

 

 

31,509

 

 

 

34,644

 

 

 

34,473

 

 

34,954

 

 

34,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

9,713

 

 

 

12,337

 

 

 

18,436

 

 

13,798

 

 

17,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

2,416

 

 

 

2,760

 

 

 

4,678

 

 

3,811

 

 

4,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

7,297

 

 

$

9,577

 

 

$

13,758

 

$

9,987

 

$

12,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.16

 

 

$

0.21

 

 

$

0.30

 

$

0.21

 

$

0.26

Diluted

 

$

0.16

 

 

$

0.21

 

 

$

0.30

 

$

0.21

 

$

0.25

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

44,857,224

 

 

 

45,321,491

 

 

 

45,830,737

 

 

46,980,830

 

 

47,836,410

Diluted

 

 

45,284,240

 

 

 

45,861,658

 

 

 

46,420,527

 

 

47,536,033

 

 

48,690,420

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

 

March 31, 2023

 

 

December 31, 2022

 

 

March 31, 2022

 

 

 

 

Average

 

 

 

 

 

 

Average

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

 

Outstanding

 

 

 

Yield/

 

 

Outstanding

 

 

 

Yield/

 

 

 

 

Balance

 

Interest

 

Cost (7)

 

 

Balance

 

Interest

 

Cost (7)

 

 

Balance

 

Interest

 

Cost (7)

 

 

 

 

(dollars in thousands)

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

387,303

 

$

2,079

 

2.18

%

 

$

388,247

 

$

2,045

 

2.09

%

 

$

393,364

 

$

1,701

 

1.75

%

 

Other interest-earning assets

 

 

63,426

 

 

803

 

5.13

 

 

 

42,640

 

 

359

 

3.34

 

 

 

150,569

 

 

61

 

0.16

 

 

Loans held for sale

 

 

18,108

 

 

286

 

6.41

 

 

 

22,350

 

 

334

 

5.93

 

 

 

29,842

 

 

264

 

3.59

 

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)(3)

 

 

2,901,464

 

 

36,837

 

5.15

 

 

 

2,770,667

 

 

34,351

 

4.92

 

 

 

2,291,343

 

 

22,095

 

3.91

 

 

Residential real estate loans (3)

 

 

1,647,109

 

 

15,616

 

3.85

 

 

 

1,566,389

 

 

14,352

 

3.64

 

 

 

1,220,703

 

 

10,142

 

3.37

 

 

Consumer loans (3)

 

 

36,310

 

 

519

 

5.80

 

 

 

45,629

 

 

632

 

5.50

 

 

 

118,242

 

 

1,339

 

4.59

 

 

Total loans

 

 

4,584,883

 

 

52,972

 

4.69

 

 

 

4,382,685

 

 

49,335

 

4.47

 

 

 

3,630,288

 

 

33,576

 

3.75

 

 

Total interest-earning assets

 

 

5,053,720

 

 

56,140

 

4.51

 

 

 

4,835,922

 

 

52,073

 

4.27

 

 

 

4,204,063

 

 

35,602

 

3.43

 

 

Noninterest-earning assets

 

 

313,309

 

 

 

 

 

 

 

 

311,372

 

 

 

 

 

 

 

 

326,811

 

 

 

 

 

 

 

Total assets

 

$

5,367,029

 

 

 

 

 

 

 

$

5,147,294

 

 

 

 

 

 

 

$

4,530,874

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

1,459,392

 

 

5,445

 

1.51

 

 

$

1,408,493

 

 

3,591

 

1.01

 

 

$

1,165,683

 

 

366

 

0.13

 

 

NOW accounts

 

 

275,801

 

 

36

 

0.05

 

 

 

291,890

 

 

40

 

0.05

 

 

 

301,279

 

 

36

 

0.05

 

 

Money market accounts

 

 

824,694

 

 

5,238

 

2.58

 

 

 

878,609

 

 

3,312

 

1.50

 

 

 

858,792

 

 

303

 

0.14

 

 

Certificates of deposit

 

 

552,636

 

 

2,685

 

1.97

 

 

 

487,121

 

 

1,062

 

0.86

 

 

 

522,211

 

 

729

 

0.57

 

 

Brokered deposits

 

 

330,426

 

 

2,509

 

3.08

 

 

 

148,460

 

 

494

 

1.32

 

 

 

100,000

 

 

187

 

0.76

 

 

Total interest-bearing deposits

 

 

3,442,949

 

 

15,913

 

1.87

 

 

 

3,214,573

 

 

8,499

 

1.05

 

 

 

2,947,965

 

 

1,621

 

0.22

 

 

FHLB advances

 

 

448,096

 

 

5,105

 

4.62

 

 

 

392,508

 

 

3,703

 

3.74

 

 

 

55,706

 

 

188

 

1.37

 

 

Subordinated debentures

 

 

34,298

 

 

523

 

6.18

 

 

 

34,268

 

 

524

 

6.07

 

 

 

34,173

 

 

523

 

6.21

 

 

Total borrowings

 

 

482,394

 

 

5,628

 

4.73

 

 

 

426,776

 

 

4,227

 

3.93

 

 

 

89,879

 

 

711

 

3.21

 

 

Total interest-bearing liabilities

 

 

3,925,343

 

 

21,541

 

2.23

 

 

 

3,641,349

 

 

12,726

 

1.39

 

 

 

3,037,844

 

 

2,332

 

0.31

 

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

721,536

 

 

 

 

 

 

 

 

788,572

 

 

 

 

 

 

 

 

738,578

 

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

101,820

 

 

 

 

 

 

 

 

101,621

 

 

 

 

 

 

 

 

86,763

 

 

 

 

 

 

 

Total liabilities

 

 

4,748,699

 

 

 

 

 

 

 

 

4,531,542

 

 

 

 

 

 

 

 

3,863,185

 

 

 

 

 

 

 

Total stockholders' equity

 

 

618,330

 

 

 

 

 

 

 

 

615,752

 

 

 

 

 

 

 

 

667,689

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

5,367,029

 

 

 

 

 

 

 

$

5,147,294

 

 

 

 

 

 

 

$

4,530,874

 

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

34,599

 

 

 

 

 

 

 

 

39,347

 

 

 

 

 

 

 

 

33,270

 

 

 

 

Tax equivalent interest rate spread (4)

 

 

 

 

 

 

 

2.28

%

 

 

 

 

 

 

 

2.88

%

 

 

 

 

 

 

 

3.12

%

 

Less: tax equivalent adjustment

 

 

 

 

 

201

 

 

 

 

 

 

 

 

158

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income as reported

 

 

 

 

$

34,398

 

 

 

 

 

 

 

$

39,189

 

 

 

 

 

 

 

$

33,270

 

 

 

 

Net interest-earning assets (5)

 

$

1,128,377

 

 

 

 

 

 

 

$

1,194,573

 

 

 

 

 

 

 

$

1,166,219

 

 

 

 

 

 

 

Net interest margin (6)

 

 

 

 

 

 

 

2.76

%

 

 

 

 

 

 

 

3.22

%

 

 

 

 

 

 

 

3.21

%

 

Tax equivalent effect

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

2.78

%

 

 

 

 

 

 

 

3.23

%

 

 

 

 

 

 

 

3.21

%

 

Ratio of interest-earning assets to interest-bearing liabilities

 

 

128.75

%

 

 

 

 

 

 

 

132.81

%

 

 

 

 

 

 

 

138.39

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

4,164,485

 

$

15,913

 

 

 

 

$

4,003,145

 

$

8,499

 

 

 

 

$

3,686,543

 

$

1,621

 

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

1.55

%

 

 

 

 

 

 

 

0.84

%

 

 

 

 

 

 

 

0.18

%

 

Total funding liabilities, including demand deposits

 

$

4,646,879

 

$

21,541

 

 

 

 

$

4,429,921

 

$

12,726

 

 

 

 

$

3,776,422

 

$

2,332

 

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

1.88

%

 

 

 

 

 

 

 

1.14

%

 

 

 

 

 

 

 

0.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(2) Includes industrial revenue bonds for the quarters ended March 31, 2023 and December 31, 2022. Interest income from tax exempt loans is computed on a taxable equivalent basis using a rate of 21% for the quarters presented. The yield on commercial loans before tax equivalent adjustment at March 31, 2023 and December 31, 2022 was 5.12% and 4.90%, respectively.

 

 

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

 

 

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

 

 

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

 

 

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

 

 
(7) Annualized.  
         

HarborOne Bancorp, Inc.

Average Balances and Yield Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances - Trend - Quarters Ended

 

 

 

March 31, 2023

 

 

December 31, 2022

 

 

September 30, 2022

 

 

June 30, 2022

 

 

March 31, 2022

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

387,303

 

 

$

388,247

 

 

$

390,577

 

 

$

391,448

 

 

$

393,364

 

Other interest-earning assets

 

 

63,426

 

 

 

42,640

 

 

 

27,723

 

 

 

64,678

 

 

 

150,569

 

Loans held for sale

 

 

18,108

 

 

 

22,350

 

 

 

28,046

 

 

 

29,474

 

 

 

29,842

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)(3)

 

 

2,901,464

 

 

 

2,770,667

 

 

 

2,522,359

 

 

 

2,384,630

 

 

 

2,291,343

 

Residential real estate loans (3)

 

 

1,647,109

 

 

 

1,566,389

 

 

 

1,470,305

 

 

 

1,330,772

 

 

 

1,220,703

 

Consumer loans (3)

 

 

36,310

 

 

 

45,629

 

 

 

63,220

 

 

 

88,943

 

 

 

118,242

 

Total loans

 

 

4,584,883

 

 

 

4,382,685

 

 

 

4,055,884

 

 

 

3,804,345

 

 

 

3,630,288

 

Total interest-earning assets

 

 

5,053,720

 

 

 

4,835,922

 

 

 

4,502,230

 

 

 

4,289,945

 

 

 

4,204,063

 

Noninterest-earning assets

 

 

313,309

 

 

 

311,372

 

 

 

308,734

 

 

 

311,998

 

 

 

326,811

 

Total assets

 

$

5,367,029

 

 

$

5,147,294

 

 

$

4,810,964

 

 

$

4,601,943

 

 

$

4,530,874

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

1,459,392

 

 

$

1,408,493

 

 

$

1,293,598

 

 

$

1,266,912

 

 

$

1,165,683

 

NOW accounts

 

 

275,801

 

 

 

291,890

 

 

 

305,777

 

 

 

311,241

 

 

 

301,279

 

Money market accounts

 

 

824,694

 

 

 

878,609

 

 

 

893,452

 

 

 

885,305

 

 

 

858,792

 

Certificates of deposit

 

 

552,636

 

 

 

487,121

 

 

 

486,923

 

 

 

484,484

 

 

 

522,211

 

Brokered deposits

 

 

330,426

 

 

 

148,460

 

 

 

102,875

 

 

 

100,000

 

 

 

100,000

 

Total interest-bearing deposits

 

 

3,442,949

 

 

 

3,214,573

 

 

 

3,082,625

 

 

 

3,047,942

 

 

 

2,947,965

 

FHLB advances

 

 

448,096

 

 

 

392,508

 

 

 

196,036

 

 

 

34,763

 

 

 

55,706

 

Subordinated debentures

 

 

34,298

 

 

 

34,268

 

 

 

34,237

 

 

 

34,207

 

 

 

34,173

 

Total borrowings

 

 

482,394

 

 

 

426,776

 

 

 

230,273

 

 

 

68,970

 

 

 

89,879

 

Total interest-bearing liabilities

 

 

3,925,343

 

 

 

3,641,349

 

 

 

3,312,898

 

 

 

3,116,912

 

 

 

3,037,844

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

721,536

 

 

 

788,572

 

 

 

789,214

 

 

 

768,088

 

 

 

738,578

 

Other noninterest-bearing liabilities

 

 

101,820

 

 

 

101,621

 

 

 

80,304

 

 

 

75,186

 

 

 

86,763

 

Total liabilities

 

 

4,748,699

 

 

 

4,531,542

 

 

 

4,182,416

 

 

 

3,960,186

 

 

 

3,863,185

 

Total stockholders' equity

 

 

618,330

 

 

 

615,752

 

 

 

628,548

 

 

 

641,757

 

 

 

667,689

 

Total liabilities and stockholders' equity

 

$

5,367,029

 

 

$

5,147,294

 

 

$

4,810,964

 

 

$

4,601,943

 

 

$

4,530,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Yield Trend - Quarters Ended

 

 

 

March 31, 2023

 

 

December 31, 2022

 

 

September 30, 2022

 

 

June 30, 2022

 

 

March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

 

2.18

%

 

 

2.09

%

 

 

2.00

%

 

 

1.92

%

 

 

1.75

%

Other interest-earning assets

 

 

5.13

%

 

 

3.34

%

 

 

2.05

%

 

 

0.81

%

 

 

0.16

%

Loans held for sale

 

 

6.41

%

 

 

5.93

%

 

 

5.33

%

 

 

4.51

%

 

 

3.59

%

Commercial loans (2)(3)

 

 

5.15

%

 

 

4.92

%

 

 

4.45

%

 

 

4.25

%

 

 

3.91

%

Residential real estate loans (3)

 

 

3.85

%

 

 

3.64

%

 

 

3.50

%

 

 

3.37

%

 

 

3.37

%

Consumer loans (3)

 

 

5.80

%

 

 

5.50

%

 

 

4.99

%

 

 

4.71

%

 

 

4.59

%

Total loans

 

 

4.69

%

 

 

4.47

%

 

 

4.11

%

 

 

3.96

%

 

 

3.75

%

Total interest-earning assets

 

 

4.51

%

 

 

4.27

%

 

 

3.93

%

 

 

3.73

%

 

 

3.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

1.51

%

 

 

1.01

%

 

 

0.37

%

 

 

0.20

%

 

 

0.13

%

NOW accounts

 

 

0.05

%

 

 

0.05

%

 

 

0.05

%

 

 

0.05

%

 

 

0.05

%

Money market accounts

 

 

2.58

%

 

 

1.50

%

 

 

0.61

%

 

 

0.30

%

 

 

0.14

%

Certificates of deposit

 

 

1.97

%

 

 

0.86

%

 

 

0.64

%

 

 

0.55

%

 

 

0.57

%

Brokered deposits

 

 

3.08

%

 

 

1.32

%

 

 

0.27

%

 

 

0.20

%

 

 

0.76

%

Total interest-bearing deposits

 

 

1.87

%

 

 

1.05

%

 

 

0.45

%

 

 

0.27

%

 

 

0.22

%

FHLB advances

 

 

4.62

%

 

 

3.74

%

 

 

2.45

%

 

 

1.36

%

 

 

1.37

%

Subordinated debentures

 

 

6.18

%

 

 

6.07

%

 

 

6.07

%

 

 

6.14

%

 

 

6.21

%

Total borrowings

 

 

4.73

%

 

 

3.93

%

 

 

2.99

%

 

 

3.74

%

 

 

3.21

%

Total interest-bearing liabilities

 

 

2.23

%

 

 

1.39

%

 

 

0.63

%

 

 

0.34

%

 

 

0.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) Includes industrial revenue bonds for the quarters ended March 31, 2023 and December 31, 2022. Interest income from tax exempt loans is computed on a taxable equivalent basis using a rate of 21% for the quarters presented. The yield on commercial loans before tax equivalent adjustment at March 31, 2023 and December 31, 2022 was 5.12% and 4.90%, respectively.

 

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

 

 

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Performance Ratios (annualized):

 

2023

 

2022

 

2022

 

2022

 

2022

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA)

 

 

0.54

%

 

0.74

%

 

1.14

%

 

0.87

%

 

1.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (ROAE)

 

 

4.72

%

 

6.22

%

 

8.76

%

 

6.22

%

 

7.35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

$

31,509

 

$

34,644

 

$

34,473

 

$

34,954

 

$

34,835

 

Less: Amortization of other intangible assets

 

 

189

 

 

189

 

 

235

 

 

235

 

 

235

 

Total adjusted noninterest expense

 

$

31,320

 

$

34,455

 

$

34,238

 

$

34,719

 

$

34,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

34,398

 

$

39,189

 

$

39,332

 

$

37,195

 

$

33,270

 

Total noninterest income

 

 

8,690

 

 

9,900

 

 

14,245

 

 

14,103

 

 

19,061

 

Total revenue

 

$

43,088

 

$

49,089

 

$

53,577

 

$

51,298

 

$

52,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (1)

 

 

72.69

%

 

70.19

%

 

63.90

%

 

67.68

%

 

66.12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or for the Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Asset Quality

 

2023

 

 

2022

 

2022

 

 

2022

 

 

2022

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

12,300

 

 

$

14,840

 

$

23,367

 

 

$

24,441

 

 

$

26,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.22

 

%

 

0.28

%

 

0.47

 

%

 

0.52

 

%

 

0.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to total loans

 

 

1.02

 

%

 

0.99

%

 

1.06

 

%

 

1.11

 

%

 

1.12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

$

(11

)

 

$

2,067

 

$

(799

)

 

$

(504

)

 

$

2,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized net charge-offs (recoveries)/average loans

 

 

 

%

 

0.19

%

 

(0.08

)

%

 

(0.05

)

%

 

0.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to nonperforming loans

 

 

383.50

 

%

 

305.93

%

 

191.60

 

%

 

178.41

 

%

 

159.96

%

 

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Capital and Share Related

 

2023

 

2022

 

2022

 

2022

 

2022

 

(dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock outstanding

 

 

47,063,087

 

 

48,961,452

 

 

49,202,660

 

 

49,989,007

 

 

51,257,696

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

12.74

 

$

12.60

 

$

12.43

 

$

12.49

 

$

12.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

599,794

 

$

616,976

 

$

611,370

 

$

624,478

 

$

649,065

 

Less: Goodwill

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

Less: Other intangible assets (1)

 

 

2,082

 

 

2,272

 

 

2,461

 

 

2,695

 

 

2,930

 

Tangible common equity

 

$

527,910

 

$

544,902

 

$

539,107

 

$

551,981

 

$

576,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (2)

 

$

11.22

 

$

11.13

 

$

10.96

 

$

11.04

 

$

11.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,572,858

 

$

5,359,545

 

$

4,987,643

 

$

4,704,044

 

$

4,591,325

 

Less: Goodwill

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

Less: Other intangible assets

 

 

2,082

 

 

2,272

 

 

2,461

 

 

2,695

 

 

2,930

 

Tangible assets

 

$

5,500,974

 

$

5,287,471

 

$

4,915,380

 

$

4,631,547

 

$

4,518,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity / tangible assets (3)

 

 

9.60

%

 

10.31

%

 

10.97

%

 

11.92

%

 

12.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 Statements of Net Income

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Mortgage

 

HarborOne Bank

 

 

For the Quarter Ended

 

For the Quarter Ended

 

 

March 31,

 

December 31,

 

March 31,

 

March 31,

 

December 31,

 

March 31,

 

 

2023

 

 

2022

 

 

2022

 

2023

 

 

2022

 

 

2022

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

327

 

 

$

419

 

 

$

350

 

$

34,562

 

 

$

39,258

 

 

$

33,424

 

Provision (benefit) for credit losses

 

 

 

 

 

 

 

 

 

 

1,866

 

 

 

2,108

 

 

 

338

 

Net interest and dividend income, after provision for loan losses

 

 

327

 

 

 

419

 

 

 

350

 

 

32,696

 

 

 

37,150

 

 

 

33,086

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

2,224

 

 

 

2,301

 

 

 

5,322

 

 

 

 

 

 

 

 

 

Intersegment gain (loss)

 

 

454

 

 

 

553

 

 

 

837

 

 

(348

)

 

 

(997

)

 

 

(608

)

Changes in mortgage servicing rights fair value

 

 

(1,556

)

 

 

(2,368

)

 

 

4,695

 

 

(136

)

 

 

(263

)

 

 

590

 

Other

 

 

2,015

 

 

 

2,122

 

 

 

2,325

 

 

201

 

 

 

203

 

 

 

233

 

Total mortgage banking income (loss)

 

 

3,137

 

 

 

2,608

 

 

 

13,179

 

 

(283

)

 

 

(1,057

)

 

 

215

 

Other noninterest income (loss)

 

 

 

 

 

126

 

 

 

9

 

 

5,942

 

 

 

7,779

 

 

 

5,887

 

Total noninterest income

 

 

3,137

 

 

 

2,734

 

 

 

13,188

 

 

5,659

 

 

 

6,722

 

 

 

6,102

 

Noninterest expense

 

 

5,322

 

 

 

5,452

 

 

 

7,761

 

 

26,190

 

 

 

28,744

 

 

 

26,825

 

(Loss) income before income taxes

 

 

(1,858

)

 

 

(2,299

)

 

 

5,777

 

 

12,165

 

 

 

15,128

 

 

 

12,363

 

Provision for income taxes

 

 

(565

)

 

 

 

 

 

1,541

 

 

3,115

 

 

 

2,817

 

 

 

3,557

 

Net (loss) income

 

$

(1,293

)

 

$

(2,299

)

 

$

4,236

 

$

9,050

 

 

$

12,311

 

 

$

8,806

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Category: Earnings

Contacts

Linda Simmons, EVP, CFO (508) 895-1379

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