HarborOne Bancorp, Inc. Announces 2022 First Quarter Earnings

HarborOne Bancorp, Inc. Announces 2022 First Quarter Earnings

BROCKTON, Mass.–(BUSINESS WIRE)–HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $12.3 million, or $0.25 per diluted share, for the first quarter of 2022, compared to net income of $12.6 million, or $0.25 per diluted share, for the preceding quarter and $19.4 million, or $0.37 per basic and diluted share, for the same period last year.

Selected First Quarter Financial Highlights:

  • Return on average assets was 1.08% and return on average equity was 7.35%.
  • Commercial loan growth of $123.3 million, or 5.5%.
  • Core deposit growth of $109.5 million, or 3.6%.
  • Net interest margin increased 2 basis points to 3.21%.
  • Strong credit quality with nonperforming assets to total assets down 22 basis points to 0.57%.
  • Announced fourth share repurchase program after completing third share repurchase program at $14.64 per share.
  • Raised quarterly dividend rate 40%, from $0.05 to $0.07 per quarter.

“We remain focused on the core fundamentals of deposit and loan growth, as we continue to invest in building out our small business banking team and tools. The launch of our new BusinessOne lending platform for small businesses will provide our business banking customers with quick access to the capital they need to help them achieve their growth objectives,” said James Blake, CEO. “We continue to be responsive to the challenges in the residential mortgage market in this rising rate environment, continuously assessing our operational costs, and making the necessary staff and expense adjustments,” added Joseph Casey, President and COO.

Net Interest Income

The Company’s net interest and dividend income was $33.3 million for the quarter ended March 31, 2022, down $715,000, or 2.1%, from $34.0 million for the quarter ended December 31, 2021 and up $1.2 million, or 3.8%, from $32.1 million for the quarter ended March 31, 2021. The tax equivalent interest rate spread and net interest margin were 3.12% and 3.21%, respectively, for the quarter ended March 31, 2022, compared to 3.10% and 3.19%, respectively, for the quarter ended December 31, 2021, and 2.99% and 3.14%, respectively, for the quarter ended March 31, 2021. On a linked-quarter basis, the decrease in net interest and dividend income primarily reflects decreases in fees recognized in connection with U.S. Small Business Administration Paycheck Protection Program (“PPP”) loans, accretion income and prepayment penalties as compared to the prior quarter, partially offset by increased rates on investments. The cost of funds was flat at 25 basis points.

The $751,000 decrease in total interest and dividend income primarily reflected a decrease in interest income on loans. The three months ended March 31, 2022 and December 31, 2021 include the recognition of deferred fees on PPP loans in the amount of $487,000 and $1.2 million, respectively. Interest on loans in the first quarter included $284,000 in accretion income from the fair value discount on loans acquired in connection with the merger with Coastway Bancorp, Inc. and $305,000 in prepayment penalties on commercial loans. Accretion income and prepayment penalties in the preceding quarter were $634,000 and $861,000, respectively.

The increase in net interest and dividend income from the prior year quarter reflected a decrease of $1.5 million, or 38.6%, in total interest expense, partially offset by a $245,000, or 0.7%, decrease in total interest and dividend income. The decreases reflect rate and volume changes in both interest-bearing assets and liabilities. The cost of interest-bearing liabilities decreased 21 basis points, while the average balance increased $60.7 million. The yield on interest-earning assets decreased 8 basis points, while the average balance increased $60.4 million.

Noninterest Income

Total noninterest income decreased $103,000, or 0.5%, to $19.1 million for the quarter ended March 31, 2022, from $19.2 million for the quarter ended December 31, 2021. Softening demand for mortgage loans resulted in mortgage loan closings of $253.8 million and a gain on loan sales of $5.3 million for the quarter ended March 31, 2022, compared to $451.4 million in mortgage closings and $10.1 million in gain on sales for the preceding quarter. The change in the fair value of derivatives included in mortgage banking income was a positive $1.0 million for the three months ended March 31, 2022, as compared to a negative $2.6 million for the three months ended December 31, 2021.

The change in the fair value of mortgage servicing rights positively impacted mortgage banking income; resulting in an increase of $5.3 million in the fair value of mortgage servicing rights for the three months ended March 31, 2022; as compared to a decrease of $245,000 in the fair value of mortgage servicing rights for the three months ended December 31, 2021. The 10-year Treasury Constant Maturity rate increased 80 basis points versus the fourth quarter of 2021, and prepayments slowed. The change in the fair value of the mortgage servicing rights is generally consistent with the change in the 10-year Treasury Constant Maturity rate. As interest rates rise and prepayment speeds slow, mortgage servicing rights values tend to increase; conversely, as interest rates fall and prepayment speeds quicken, mortgage servicing rights values tend to decrease.

Deposit account fees decreased $311,000, or 6.5%, to $4.5 million for the quarter ended March 31, 2022, from $4.8 million for the quarter ended December 31, 2021. Other income for the quarter ended March 31, 2022 increased $245,000. The fourth quarter of 2021 included a write-off of $431,000 on a direct interest-rate swap related to a non-accrual loan, and no such write-off was recorded in the first quarter of 2022.

Total noninterest income decreased $18.7 million, or 49.6%, as compared to the quarter ended March 31, 2021, primarily due to a $19.6 million, or 59.8%, decrease in mortgage banking income, driven by the decrease in loan closings and narrowing gain-on-sale margins. The decrease in mortgage banking income was offset by a $620,000 increase in deposit account fees.

Noninterest Expense

Total noninterest expenses were $34.8 million for the quarter ended March 31, 2022, a decrease of $3.4 million, or 8.8%, from the quarter ended December 31, 2021. The decrease primarily reflects the decrease in compensation and benefits, consistent with the decrease in residential mortgage loan closings at HarborOne Mortgage, LLC (“HarborOne Mortgage”).

Total noninterest expenses decreased $8.0 million, or 18.6%, from the quarter ended March 31, 2021. Compensation and benefits decreased $6.7 million and loan expenses decreased $2.0 million, consistent with the decrease in residential mortgage loan closings.

Income Tax Provision

The effective tax rate was 28.5% for the quarter ended March 31, 2022, compared to 23.2% for the quarter ended December 31, 2021 and 28.1% for the quarter ended March 31, 2021. The effective tax rate for the quarter ended December 31, 2021 was impacted by the recognition of a net tax benefit in the amount of $754,000 for a reserve release upon the expiration of the applicable statute of limitations.

Asset Quality and Allowance for Credit Losses

Effective January 1, 2022, the Company adopted Accounting Standards Update No. 2016-13, commonly referred to as CECL, which requires the measurement of expected lifetime credit losses for financial assets measured at amortized cost, as well as unfunded commitments that are considered off-balance sheet credit exposures. CECL requires that the allowance for credit losses (“ACL”) be calculated based on current expected credit losses over the full remaining expected life of the financial assets and also consider expected future changes in macroeconomic conditions. Upon adoption of CECL on January 1, 2022, the Company’s ACL on loans decreased by $1.3 million, and the ACL on unfunded commitments increased by $3.9 million for a net increase of $2.6 million. The after-tax impact of $1.9 million was recognized as a one-time, cumulative-effect adjustment that decreased retained earnings.

Credit quality performance has remained strong with total nonperforming assets of $26.1 million at March 31, 2022, compared to $36.2 million at December 31, 2021 and $32.9 million at March 31, 2021. Nonperforming assets as a percentage of total assets were 0.57% at March 31, 2022, 0.79% at December 31, 2021, and 0.71% at March 31, 2021. The decrease in nonperforming assets was primarily due to the resolution of one credit in the amount of $8.8 million, previously included in the office at-risk sector, for which the Company also recorded a $2.8 million charge off in the first quarter of 2022.

Net charges-offs totaled $2.7 million, or 0.30% of average loans outstanding on an annualized basis, for the quarter ended March 31, 2022. Net charge-offs totaled $1.2 million, or 0.13% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2021, and net charge-offs totaled $102,000, or 0.01% of average loans outstanding on an annualized basis, for the quarter ended March 31, 2021.

The ACL was $41.8 million, or 1.12% of total loans, at March 31, 2022, compared to $45.4 million, or 1.26% of total loans, at December 31, 2021 and $55.4 million, or 1.60% of total loans, at March 31, 2021. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheets, amounted to $3.8 million at March 31, 2022, and there was no ACL on unfunded commitments at December 31, 2021.

Although we have not experienced any significant negative trends in the at-risk sectors previously identified, Management continues to monitor commercial loan sectors that may be susceptible to increased credit risk as a result of the COVID-19 pandemic: retail, office space, hotels, restaurants, and recreation. The five commercial sectors identified as at-risk totaled $835.2 million at March 31, 2022, which represents 35.1% of the commercial loan portfolio. The at-risk sectors include $712.7 million in commercial real estate loans, $73.8 million in commercial and industrial loans, and $48.7 million in commercial construction loans. Non-performing loans included in the at-risk sectors amounted to $10.8 million at March 31, 2022, the majority of which was included in the hotels sector.

Balance Sheet

Total assets increased $37.9 million, or 0.8%, to $4.59 billion at March 31, 2022 from $4.55 billion at December 31, 2021. The increase primarily reflects an increase of $129.6 million in loans, partially offset by decreases of $55.0 million in cash and cash equivalents and $32.5 million in securities available for sale. Securities available for sale were negatively impacted by unrealized losses of $30.0 million as March 31, 2022, as compared to $3.6 million of unrealized losses as of December 31, 2021.

Loans increased $129.6 million, or 3.6%, to $3.74 billion at March 31, 2022, from $3.61 billion at December 31, 2021. The increase in loans for the three months ended March 31, 2022 was primarily due to an increase in total commercial loans of $123.3 million and residential real estate loans of $34.9 million, partially offset by a decrease in consumer loans of $28.6 million. As of March 31, 2022, outstanding PPP loans amounted to $13.6 million, and there was $462,000 in deferred processing fee income. We expect to complete the forgiveness process for the remaining PPP loans by the end of the second quarter of 2022.

Total deposits were $3.76 billion at March 31, 2022 and $3.68 billion at December 31, 2021. Compared to the prior quarter, non-certificate accounts increased $109.5 million, and term certificate accounts decreased $30.2 million. FHLB borrowings were flat at $55.7 million at March 31, 2022 and December 31, 2021.

Total stockholders’ equity was $649.1 million at March 31, 2022, compared to $679.3 million at December 31, 2021 and $698.1 million at March 31, 2021. Stockholders’ equity decreased 4.4% when compared to the prior quarter, as earnings were offset by share repurchases and elevated levels of unrealized losses on available-for-sale investment securities included in other comprehensive income. The Company completed its third share repurchase program on March 25, 2022 of 2,668,159 shares at an average price of $14.64. The Company announced a fourth share repurchase program on April 12, 2022, under which it may repurchase up to 2,526,134 shares of the Company’s common stock, or approximately 5% of the Company’s outstanding shares. The tangible-common-equity-to-tangible-assets ratio was 12.75% at March 31, 2022, 13.53% at December 31, 2021, and 13.77% at March 31, 2021. At March 31, 2022, the Company and the Bank had strong capital positions and exceeded all regulatory capital requirements.

About HarborOne Bancorp, Inc.

HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered savings bank. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 30 full-service branches located in Massachusetts and Rhode Island, and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. The 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 more than 30 offices in Massachusetts, Rhode Island, and New Hampshire, and is licensed to lend in seven 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, ongoing disruptions due to the COVID-19 pandemic and the measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; changes in general business and economic conditions 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; 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; changes related to the discontinuation and replacement of LIBOR; 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; operational risks including, but not limited to, 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 tax equivalent basis for yields, 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.

Category: Earnings

HarborOne Bancorp, Inc.

Consolidated Balance Sheet Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(in thousands)

 

2022

 

2021

 

2021

 

2021

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

41,862

 

 

$

35,549

 

 

$

42,589

 

 

$

41,328

 

 

$

37,074

 

Short-term investments

 

 

97,870

 

 

 

159,170

 

 

 

277,050

 

 

 

374,319

 

 

 

281,451

 

Total cash and cash equivalents

 

 

139,732

 

 

 

194,719

 

 

 

319,639

 

 

 

415,647

 

 

 

318,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

361,529

 

 

 

394,036

 

 

 

390,552

 

 

 

353,848

 

 

 

304,168

 

Federal Home Loan Bank stock, at cost

 

 

5,931

 

 

 

5,931

 

 

 

6,828

 

 

 

7,241

 

 

 

7,572

 

Asset held for sale

 

 

678

 

 

 

881

 

 

 

881

 

 

 

 

 

 

 

Loans held for sale, at fair value

 

 

25,690

 

 

 

45,642

 

 

 

77,052

 

 

 

103,886

 

 

 

210,494

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

1,816,484

 

 

 

1,699,877

 

 

 

1,573,284

 

 

 

1,561,873

 

 

 

1,559,056

 

Commercial construction

 

 

154,059

 

 

 

136,563

 

 

 

152,685

 

 

 

107,585

 

 

 

112,187

 

Commercial and industrial

 

 

410,787

 

 

 

421,608

 

 

 

414,814

 

 

 

467,479

 

 

 

499,728

 

Total commercial loans

 

 

2,381,330

 

 

 

2,258,048

 

 

 

2,140,783

 

 

 

2,136,937

 

 

 

2,170,971

 

Residential real estate

 

 

1,252,920

 

 

 

1,217,980

 

 

 

1,160,689

 

 

 

1,096,370

 

 

 

1,062,229

 

Consumer

 

 

103,100

 

 

 

131,705

 

 

 

156,272

 

 

 

186,430

 

 

 

228,279

 

Loans

 

 

3,737,350

 

 

 

3,607,733

 

 

 

3,457,744

 

 

 

3,419,737

 

 

 

3,461,479

 

Less: Allowance for credit losses on loans

 

 

(41,765

)

 

 

(45,377

)

 

 

(47,988

)

 

 

(51,273

)

 

 

(55,384

)

Net loans

 

 

3,695,585

 

 

 

3,562,356

 

 

 

3,409,756

 

 

 

3,368,464

 

 

 

3,406,095

 

Mortgage servicing rights, at fair value

 

 

45,043

 

 

 

38,268

 

 

 

36,540

 

 

 

35,955

 

 

 

33,939

 

Goodwill

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

Other intangible assets

 

 

2,930

 

 

 

3,164

 

 

 

3,399

 

 

 

3,723

 

 

 

4,047

 

Other assets

 

 

244,405

 

 

 

238,606

 

 

 

252,645

 

 

 

257,856

 

 

 

251,316

 

Total assets

 

$

4,591,325

 

 

$

4,553,405

 

 

$

4,567,094

 

 

$

4,616,422

 

 

$

4,605,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposit accounts

 

$

771,172

 

 

$

743,051

 

 

$

756,917

 

 

$

800,118

 

 

$

777,959

 

NOW accounts

 

 

310,090

 

 

 

313,733

 

 

 

300,577

 

 

 

250,099

 

 

 

224,869

 

Regular savings and club accounts

 

 

1,218,656

 

 

 

1,138,979

 

 

 

1,144,595

 

 

 

1,123,123

 

 

 

1,113,450

 

Money market deposit accounts

 

 

864,316

 

 

 

858,970

 

 

 

832,441

 

 

 

832,006

 

 

 

861,867

 

Term certificate accounts

 

 

597,746

 

 

 

627,916

 

 

 

659,850

 

 

 

682,594

 

 

 

696,438

 

Total deposits

 

 

3,761,980

 

 

 

3,682,649

 

 

 

3,694,380

 

 

 

3,687,940

 

 

 

3,674,583

 

Long-term borrowed funds

 

 

55,702

 

 

 

55,711

 

 

 

55,720

 

 

 

87,479

 

 

 

97,488

 

Subordinated debt

 

 

34,191

 

 

 

34,159

 

 

 

34,128

 

 

 

34,096

 

 

 

34,064

 

Other liabilities and accrued expenses

 

 

90,387

 

 

 

101,625

 

 

 

102,834

 

 

 

101,436

 

 

 

101,750

 

Total liabilities

 

 

3,942,260

 

 

 

3,874,144

 

 

 

3,887,062

 

 

 

3,910,951

 

 

 

3,907,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

591

 

 

 

585

 

 

 

585

 

 

 

585

 

 

 

585

 

Additional paid-in capital

 

 

477,302

 

 

 

469,934

 

 

 

468,526

 

 

 

467,194

 

 

 

465,832

 

Unearned compensation – ESOP

 

 

(29,002

)

 

 

(29,461

)

 

 

(29,921

)

 

 

(30,380

)

 

 

(30,840

)

Retained earnings

 

 

332,734

 

 

 

325,699

 

 

 

315,683

 

 

 

305,831

 

 

 

294,116

 

Treasury stock

 

 

(113,513

)

 

 

(85,859

)

 

 

(73,723

)

 

 

(38,588

)

 

 

(31,460

)

Accumulated other comprehensive income (loss)

 

 

(19,047

)

 

 

(1,637

)

 

 

(1,118

)

 

 

829

 

 

 

(160

)

Total stockholders’ equity

 

 

649,065

 

 

 

679,261

 

 

 

680,032

 

 

 

705,471

 

 

 

698,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

4,591,325

 

 

$

4,553,405

 

 

$

4,567,094

 

 

$

4,616,422

 

 

$

4,605,958

 

 

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)

 

2022

 

2021

 

2021

 

2021

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

33,576

 

$

34,177

 

 

$

33,680

 

 

$

34,106

 

 

$

33,860

Interest on loans held for sale

 

 

264

 

 

501

 

 

 

665

 

 

 

852

 

 

 

1,324

Interest on securities

 

 

1,701

 

 

1,541

 

 

 

1,293

 

 

 

793

 

 

 

585

Other interest and dividend income

 

 

61

 

 

134

 

 

 

170

 

 

 

136

 

 

 

78

Total interest and dividend income

 

 

35,602

 

 

36,353

 

 

 

35,808

 

 

 

35,887

 

 

 

35,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

1,621

 

 

1,651

 

 

 

2,050

 

 

 

2,302

 

 

 

2,720

Interest on FHLB borrowings

 

 

188

 

 

193

 

 

 

431

 

 

 

531

 

 

 

552

Interest on subordinated debentures

 

 

523

 

 

524

 

 

 

524

 

 

 

524

 

 

 

523

Total interest expense

 

 

2,332

 

 

2,368

 

 

 

3,005

 

 

 

3,357

 

 

 

3,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

33,270

 

 

33,985

 

 

 

32,803

 

 

 

32,530

 

 

 

32,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

338

 

 

(1,436

)

 

 

(1,627

)

 

 

(4,286

)

 

 

91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for credit losses

 

 

32,932

 

 

35,421

 

 

 

34,430

 

 

 

36,816

 

 

 

31,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

5,322

 

 

10,063

 

 

 

12,756

 

 

 

14,262

 

 

 

24,802

Changes in mortgage servicing rights fair value

 

 

5,285

 

 

(245

)

 

 

(992

)

 

 

(2,552

)

 

 

3,409

Other

 

 

2,558

 

 

3,359

 

 

 

3,882

 

 

 

4,075

 

 

 

4,515

Total mortgage banking income

 

 

13,165

 

 

13,177

 

 

 

15,646

 

 

 

15,785

 

 

 

32,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

4,472

 

 

4,783

 

 

 

4,658

 

 

 

4,546

 

 

 

3,852

Income on retirement plan annuities

 

 

107

 

 

109

 

 

 

108

 

 

 

106

 

 

 

104

Gain on sale and call of securities, net

 

 

 

 

 

 

 

241

 

 

 

 

 

 

Bank-owned life insurance income

 

 

483

 

 

506

 

 

 

515

 

 

 

508

 

 

 

493

Other income

 

 

834

 

 

589

 

 

 

842

 

 

 

758

 

 

 

634

Total noninterest income

 

 

19,061

 

 

19,164

 

 

 

22,010

 

 

 

21,703

 

 

 

37,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

20,723

 

 

24,564

 

 

 

24,760

 

 

 

25,146

 

 

 

27,454

Occupancy and equipment

 

 

5,428

 

 

4,923

 

 

 

4,765

 

 

 

4,702

 

 

 

5,256

Data processing

 

 

2,241

 

 

2,244

 

 

 

2,205

 

 

 

2,362

 

 

 

2,343

Loan expense

 

 

478

 

 

732

 

 

 

1,323

 

 

 

1,250

 

 

 

2,435

Marketing

 

 

1,218

 

 

1,120

 

 

 

880

 

 

 

831

 

 

 

813

Professional fees

 

 

1,539

 

 

1,443

 

 

 

1,362

 

 

 

1,487

 

 

 

1,583

Deposit insurance

 

 

349

 

 

345

 

 

 

341

 

 

 

332

 

 

 

320

Prepayment penalties on Federal Home Loan Bank advances

 

 

 

 

 

 

 

1,095

 

 

 

 

 

 

Other expenses

 

 

2,859

 

 

2,817

 

 

 

2,543

 

 

 

2,488

 

 

 

2,598

Total noninterest expenses

 

 

34,835

 

 

38,188

 

 

 

39,274

 

 

 

38,598

 

 

 

42,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

17,158

 

 

16,397

 

 

 

17,166

 

 

 

19,921

 

 

 

26,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

4,891

 

 

3,807

 

 

 

4,907

 

 

 

5,645

 

 

 

7,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

12,267

 

$

12,590

 

 

$

12,259

 

 

$

14,276

 

 

$

19,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.26

 

$

0.26

 

 

$

0.25

 

 

$

0.28

 

 

$

0.37

Diluted

 

$

0.25

 

$

0.25

 

 

$

0.24

 

 

$

0.27

 

 

$

0.37

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

47,836,410

 

 

48,918,539

 

 

 

49,801,123

 

 

 

51,778,293

 

 

 

52,537,409

Diluted

 

 

48,690,420

 

 

49,828,379

 

 

 

50,663,415

 

 

 

52,650,071

 

 

 

53,000,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31,

 

 

 

 

(dollars in thousands, except share data)

 

2022

 

2021

 

$ Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

33,576

 

$

33,860

 

$

(284

)

 

(0.8

)%

Interest on loans held for sale

 

 

264

 

 

1,324

 

 

(1,060

)

 

(80.1

)

Interest on securities

 

 

1,701

 

 

585

 

 

1,116

 

 

190.8

 

Other interest and dividend income

 

 

61

 

 

78

 

 

(17

)

 

(21.8

)

Total interest and dividend income

 

 

35,602

 

 

35,847

 

 

(245

)

 

(0.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

1,621

 

 

2,720

 

 

(1,099

)

 

(40.4

)

Interest on FHLB borrowings

 

 

188

 

 

552

 

 

(364

)

 

(65.9

)

Interest on subordinated debentures

 

 

523

 

 

523

 

 

 

 

0.0

 

Total interest expense

 

 

2,332

 

 

3,795

 

 

(1,463

)

 

(38.6

)

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

33,270

 

 

32,052

 

 

1,218

 

 

3.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

338

 

 

91

 

 

247

 

 

271.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for credit losses

 

 

32,932

 

 

31,961

 

 

971

 

 

3.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

5,322

 

 

24,802

 

 

(19,480

)

 

(78.5

)

Changes in mortgage servicing rights fair value

 

 

5,285

 

 

3,409

 

 

1,876

 

 

55.0

 

Other

 

 

2,558

 

 

4,515

 

 

(1,957

)

 

(43.3

)

Total mortgage banking income

 

 

13,165

 

 

32,726

 

 

(19,561

)

 

(59.8

)

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

4,472

 

 

3,852

 

 

620

 

 

16.1

 

Income on retirement plan annuities

 

 

107

 

 

104

 

 

3

 

 

2.9

 

Bank-owned life insurance income

 

 

483

 

 

493

 

 

(10

)

 

(2.0

)

Other income

 

 

834

 

 

634

 

 

200

 

 

31.5

 

Total noninterest income

 

 

19,061

 

 

37,809

 

 

(18,748

)

 

(49.6

)

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

20,723

 

 

27,454

 

 

(6,731

)

 

(24.5

)

Occupancy and equipment

 

 

5,428

 

 

5,256

 

 

172

 

 

3.3

 

Data processing

 

 

2,241

 

 

2,343

 

 

(102

)

 

(4.4

)

Loan expense

 

 

478

 

 

2,435

 

 

(1,957

)

 

(80.4

)

Marketing

 

 

1,218

 

 

813

 

 

405

 

 

49.8

 

Professional fees

 

 

1,539

 

 

1,583

 

 

(44

)

 

(2.8

)

Deposit insurance

 

 

349

 

 

320

 

 

29

 

 

9.1

 

Other expenses

 

 

2,859

 

 

2,598

 

 

261

 

 

10.0

 

Total noninterest expenses

 

 

34,835

 

 

42,802

 

 

(7,967

)

 

(18.6

)

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

17,158

 

 

26,968

 

 

(9,810

)

 

(36.4

)

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

4,891

 

 

7,576

 

 

(2,685

)

 

(35.4

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

12,267

 

$

19,392

 

$

(7,125

)

 

(36.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.26

 

$

0.37

 

 

 

 

 

Diluted

 

$

0.25

 

$

0.37

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

47,836,410

 

 

52,537,409

 

 

 

 

 

Diluted

 

 

48,690,420

 

 

53,000,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

March 31, 2022

 

December 31, 2021

 

March 31, 2021

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost (6)

 

Balance

 

Interest

 

Cost (6)

 

Balance

 

Interest

 

Cost (6)

 

 

 

(dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

393,364

 

$

1,701

 

1.75

%

$

394,301

 

$

1,541

 

1.55

%

$

271,357

 

$

585

 

0.87

%

Other interest-earning assets

 

 

150,569

 

 

61

 

0.16

 

 

286,026

 

 

134

 

0.19

 

 

180,526

 

 

78

 

0.18

 

Loans held for sale

 

 

29,842

 

 

264

 

3.59

 

 

63,833

 

 

501

 

3.11

 

 

193,426

 

 

1,324

 

2.78

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)

 

 

2,291,343

 

 

22,095

 

3.91

 

 

2,165,739

 

 

22,658

 

4.15

 

 

2,161,076

 

 

20,780

 

3.90

 

Residential real estate loans (2)

 

 

1,220,703

 

 

10,142

 

3.37

 

 

1,171,608

 

 

9,870

 

3.34

 

 

1,084,292

 

 

10,340

 

3.87

 

Consumer loans (2)

 

 

118,242

 

 

1,339

 

4.59

 

 

143,577

 

 

1,649

 

4.56

 

 

253,014

 

 

2,740

 

4.39

 

Total loans

 

 

3,630,288

 

 

33,576

 

3.75

 

 

3,480,924

 

 

34,177

 

3.90

 

 

3,498,382

 

 

33,860

 

3.93

 

Total interest-earning assets

 

 

4,204,063

 

 

35,602

 

3.43

 

 

4,225,084

 

 

36,353

 

3.41

 

 

4,143,691

 

 

35,847

 

3.51

 

Noninterest-earning assets

 

 

326,811

 

 

 

 

 

 

 

337,310

 

 

 

 

 

 

 

330,257

 

 

 

 

 

 

Total assets

 

$

4,530,874

 

 

 

 

 

 

$

4,562,394

 

 

 

 

 

 

$

4,473,948

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

1,165,683

 

 

366

 

0.13

 

$

1,147,855

 

 

247

 

0.09

 

$

1,058,820

 

 

537

 

0.21

 

NOW accounts

 

 

301,279

 

 

36

 

0.05

 

 

300,459

 

 

40

 

0.05

 

 

212,282

 

 

37

 

0.07

 

Money market accounts

 

 

858,792

 

 

303

 

0.14

 

 

839,977

 

 

307

 

0.15

 

 

861,518

 

 

560

 

0.26

 

Certificates of deposit

 

 

522,211

 

 

729

 

0.57

 

 

543,208

 

 

878

 

0.64

 

 

608,089

 

 

1,444

 

0.96

 

Brokered deposits

 

 

100,000

 

 

187

 

0.76

 

 

100,000

 

 

179

 

0.71

 

 

100,000

 

 

142

 

0.58

 

Total interest-bearing deposits

 

 

2,947,965

 

 

1,621

 

0.22

 

 

2,931,499

 

 

1,651

 

0.22

 

 

2,840,709

 

 

2,720

 

0.39

 

FHLB advances

 

 

55,706

 

 

188

 

1.37

 

 

55,714

 

 

193

 

1.37

 

 

102,383

 

 

552

 

2.19

 

Subordinated debentures

 

 

34,173

 

 

523

 

6.21

 

 

34,144

 

 

524

 

6.09

 

 

34,048

 

 

523

 

6.23

 

Total borrowings

 

 

89,879

 

 

711

 

3.21

 

 

89,858

 

 

717

 

3.17

 

 

136,431

 

 

1,075

 

3.20

 

Total interest-bearing liabilities

 

 

3,037,844

 

 

2,332

 

0.31

 

 

3,021,357

 

 

2,368

 

0.31

 

 

2,977,140

 

 

3,795

 

0.52

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

738,578

 

 

 

 

 

 

 

768,361

 

 

 

 

 

 

 

706,274

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

86,763

 

 

 

 

 

 

 

92,034

 

 

 

 

 

 

 

93,380

 

 

 

 

 

 

Total liabilities

 

 

3,863,185

 

 

 

 

 

 

 

3,881,752

 

 

 

 

 

 

 

3,776,794

 

 

 

 

 

 

Total stockholders’ equity

 

 

667,689

 

 

 

 

 

 

 

680,642

 

 

 

 

 

 

 

697,154

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

4,530,874

 

 

 

 

 

 

$

4,562,394

 

 

 

 

 

 

$

4,473,948

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

33,270

 

 

 

 

 

 

 

33,985

 

 

 

 

 

 

 

32,052

 

 

 

Tax equivalent interest rate spread (3)

 

 

 

 

 

 

 

3.12

%

 

 

 

 

 

 

3.10

%

 

 

 

 

 

 

2.99

%

Less: tax equivalent adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income as reported

 

 

 

 

$

33,270

 

 

 

 

 

 

$

33,985

 

 

 

 

 

 

$

32,052

 

 

 

Net interest-earning assets (4)

 

$

1,166,219

 

 

 

 

 

 

$

1,203,727

 

 

 

 

 

 

$

1,166,551

 

 

 

 

 

 

Net interest margin (5)

 

 

 

 

 

 

 

3.21

%

 

 

 

 

 

 

3.19

%

 

 

 

 

 

 

3.14

%

Tax equivalent effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

3.21

%

 

 

 

 

 

 

3.19

%

 

 

 

 

 

 

3.14

%

Average interest-earning assets to average interest-bearing liabilities

 

 

138.39

%

 

 

 

 

 

 

139.84

%

 

 

 

 

 

 

139.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

3,686,543

 

$

1,621

 

 

 

$

3,699,860

 

$

1,651

 

 

 

$

3,546,983

 

$

2,720

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

0.18

%

 

 

 

 

 

 

0.18

%

 

 

 

 

 

 

0.31

%

Total funding liabilities, including demand deposits

 

$

3,776,422

 

$

2,332

 

 

 

$

3,789,718

 

$

2,368

 

 

 

$

3,683,414

 

$

3,795

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

0.25

%

 

 

 

 

 

 

0.25

%

 

 

 

 

 

 

0.42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes securities available for sale. Interest income from tax exempt securities is computed on a tax equivalent basis using a tax rate of 21%. There were no tax exempt securities in the quarters presented.

 

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

 

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

 

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

 

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

 

(6) Annualized.

 

 

HarborOne Bancorp, Inc.

Average Balances and Yield Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances – Trend – Quarters Ended

 

 

 

March 31, 2022

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

393,364

 

$

394,301

 

$

358,927

 

$

325,205

 

$

271,357

 

Other interest-earning assets

 

 

150,569

 

 

286,026

 

 

372,892

 

 

397,979

 

 

180,526

 

Loans held for sale

 

 

29,842

 

 

63,833

 

 

84,399

 

 

115,240

 

 

193,426

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)

 

 

2,291,343

 

 

2,165,739

 

 

2,121,432

 

 

2,152,105

 

 

2,161,076

 

Residential real estate loans (2)

 

 

1,220,703

 

 

1,171,608

 

 

1,121,898

 

 

1,064,481

 

 

1,084,292

 

Consumer loans (2)

 

 

118,242

 

 

143,577

 

 

170,366

 

 

205,856

 

 

253,014

 

Total loans

 

 

3,630,288

 

 

3,480,924

 

 

3,413,696

 

 

3,422,442

 

 

3,498,382

 

Total interest-earning assets

 

 

4,204,063

 

 

4,225,084

 

 

4,229,914

 

 

4,260,866

 

 

4,143,691

 

Noninterest-earning assets

 

 

326,811

 

 

337,310

 

 

347,060

 

 

339,438

 

 

330,257

 

Total assets

 

$

4,530,874

 

$

4,562,394

 

$

4,576,974

 

$

4,600,304

 

$

4,473,948

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

1,165,683

 

$

1,147,855

 

$

1,136,131

 

$

1,118,494

 

$

1,058,820

 

NOW accounts

 

 

301,279

 

 

300,459

 

 

283,725

 

 

231,075

 

 

212,282

 

Money market accounts

 

 

858,792

 

 

839,977

 

 

832,340

 

 

853,586

 

 

861,518

 

Certificates of deposit

 

 

522,211

 

 

543,208

 

 

570,570

 

 

589,964

 

 

608,089

 

Brokered deposits

 

 

100,000

 

 

100,000

 

 

100,000

 

 

100,000

 

 

100,000

 

Total interest-bearing deposits

 

 

2,947,965

 

 

2,931,499

 

 

2,922,766

 

 

2,893,119

 

 

2,840,709

 

FHLB advances

 

 

55,706

 

 

55,714

 

 

84,438

 

 

96,823

 

 

102,383

 

Subordinated debentures

 

 

34,173

 

 

34,144

 

 

34,111

 

 

34,080

 

 

34,048

 

Total borrowings

 

 

89,879

 

 

89,858

 

 

118,549

 

 

130,903

 

 

136,431

 

Total interest-bearing liabilities

 

 

3,037,844

 

 

3,021,357

 

 

3,041,315

 

 

3,024,022

 

 

2,977,140

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

738,578

 

 

768,361

 

 

756,927

 

 

784,521

 

 

706,274

 

Other noninterest-bearing liabilities

 

 

86,763

 

 

92,034

 

 

90,366

 

 

88,577

 

 

93,380

 

Total liabilities

 

 

3,863,185

 

 

3,881,752

 

 

3,888,608

 

 

3,897,120

 

 

3,776,794

 

Total stockholders’ equity

 

 

667,689

 

 

680,642

 

 

688,366

 

 

703,184

 

 

697,154

 

Total liabilities and stockholders’ equity

 

$

4,530,874

 

$

4,562,394

 

$

4,576,974

 

$

4,600,304

 

$

4,473,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Yield Trend – Quarters Ended

 

 

 

March 31, 2022

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

 

1.75

%

 

1.55

%

 

1.43

%

 

0.98

%

 

0.87

%

Other interest-earning assets

 

 

0.16

%

 

0.19

%

 

0.18

%

 

0.14

%

 

0.18

%

Loans held for sale

 

 

3.59

%

 

3.11

%

 

3.13

%

 

2.97

%

 

2.78

%

Commercial loans (2)

 

 

3.91

%

 

4.15

%

 

4.19

%

 

4.11

%

 

3.90

%

Residential real estate loans (2)

 

 

3.37

%

 

3.34

%

 

3.31

%

 

3.67

%

 

3.87

%

Consumer loans (2)

 

 

4.59

%

 

4.56

%

 

4.50

%

 

4.44

%

 

4.39

%

Total loans

 

 

3.75

%

 

3.90

%

 

3.91

%

 

4.00

%

 

3.93

%

Total interest-earning assets

 

 

3.43

%

 

3.41

%

 

3.36

%

 

3.38

%

 

3.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

0.13

%

 

0.09

%

 

0.13

%

 

0.17

%

 

0.21

%

NOW accounts

 

 

0.05

%

 

0.05

%

 

0.06

%

 

0.07

%

 

0.07

%

Money market accounts

 

 

0.14

%

 

0.15

%

 

0.19

%

 

0.20

%

 

0.26

%

Certificates of deposit

 

 

0.57

%

 

0.64

%

 

0.76

%

 

0.84

%

 

0.96

%

Brokered deposits

 

 

0.76

%

 

0.71

%

 

0.64

%

 

0.62

%

 

0.58

%

Total interest-bearing deposits

 

 

0.22

%

 

0.22

%

 

0.28

%

 

0.32

%

 

0.39

%

FHLB advances

 

 

1.37

%

 

1.37

%

 

2.03

%

 

2.20

%

 

2.19

%

Subordinated debentures

 

 

6.21

%

 

6.09

%

 

6.09

%

 

6.17

%

 

6.23

%

Total borrowings

 

 

3.21

%

 

3.17

%

 

3.20

%

 

3.23

%

 

3.20

%

Total interest-bearing liabilities

 

 

0.31

%

 

0.31

%

 

0.39

%

 

0.45

%

 

0.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes securities available for sale.

 

(2) 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):

 

2022

 

2021

 

2021

 

2021

 

2021

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA)

 

 

1.08

%

 

1.10

%

 

1.07

%

 

1.24

%

 

1.73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (ROAE)

 

 

7.35

%

 

7.40

%

 

7.12

%

 

8.12

%

 

11.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

$

34,835

 

$

38,188

 

$

39,274

 

$

38,598

 

$

42,802

 

Less: Amortization of other intangible assets

 

 

235

 

 

235

 

 

324

 

 

324

 

 

324

 

Total adjusted noninterest expense

 

$

34,600

 

$

37,953

 

$

38,950

 

$

38,274

 

$

42,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

33,270

 

$

33,985

 

$

32,803

 

$

32,530

 

$

32,052

 

Total noninterest income

 

 

19,061

 

 

19,164

 

 

22,010

 

 

21,703

 

 

37,809

 

Total revenue

 

$

52,331

 

$

53,149

 

$

54,813

 

$

54,233

 

$

69,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (1)

 

 

66.12

%

 

71.41

%

 

71.06

%

 

70.57

%

 

60.80

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

2022

 

2021

 

2021

 

2021

 

2021

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

26,109

 

$

36,186

 

$

36,514

 

$

32,731

 

$

32,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.57

%

 

0.79

%

 

0.80

%

 

0.71

%

 

0.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to total loans

 

 

1.12

%

 

1.26

%

 

1.39

%

 

1.50

%

 

1.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs

 

$

2,730

 

$

1,174

 

$

1,658

 

$

(175)

 

$

102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized net charge-offs/average loans

 

 

0.30

%

 

0.13

%

 

0.19

%

 

(0.02)

%

 

0.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to nonperforming loans

 

 

159.96

%

 

125.60

%

 

131.52

%

 

158.08

%

 

171.18

%

 

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Capital and Share Related

 

2022

 

2021

 

2021

 

2021

 

2021

 

(dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock outstanding

 

 

51,257,696

 

 

52,390,478

 

 

53,232,110

 

 

55,735,623

 

 

56,228,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

12.66

 

$

12.97

 

$

12.77

 

$

12.66

 

$

12.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

$

649,065

 

$

679,261

 

$

680,032

 

$

705,471

 

$

698,073

 

Less: Goodwill

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

Less: Other intangible assets (1)

 

 

2,930

 

 

3,164

 

 

3,399

 

 

3,723

 

 

4,047

 

Tangible common equity

 

$

576,333

 

$

606,295

 

$

606,831

 

$

631,946

 

$

624,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (2)

 

$

11.24

 

$

11.57

 

$

11.40

 

$

11.34

 

$

11.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,591,325

 

$

4,553,405

 

$

4,567,094

 

$

4,616,422

 

$

4,605,958

 

Less: Goodwill

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

Less: Other intangible assets

 

 

2,930

 

 

3,164

 

 

3,399

 

 

3,723

 

 

4,047

 

Tangible assets

 

$

4,518,593

 

$

4,480,439

 

$

4,493,893

 

$

4,542,897

 

$

4,532,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity / tangible assets (3)

 

 

12.75

%

 

13.53

%

 

13.50

%

 

13.91

%

 

13.77

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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,

 

 

2022

 

2021

 

2021

 

2022

 

2021

 

2021

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

350

 

$

571

 

 

$

1,250

 

 

$

33,424

 

 

$

33,909

 

 

$

31,248

 

Provision for credit losses

 

 

 

 

 

 

 

 

 

 

338

 

 

 

(1,436

)

 

 

91

 

Net interest and dividend income, after provision for loan losses

 

 

350

 

 

571

 

 

 

1,250

 

 

 

33,086

 

 

 

35,345

 

 

 

31,157

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

5,322

 

 

10,063

 

 

 

24,802

 

 

 

 

 

 

 

 

 

 

Intersegment gain (loss)

 

 

837

 

 

496

 

 

 

662

 

 

 

(608

)

 

 

(720

)

 

 

(662

)

Changes in mortgage servicing rights fair value

 

 

4,695

 

 

(315

)

 

 

3,123

 

 

 

590

 

 

 

70

 

 

 

286

 

Other

 

 

2,325

 

 

3,108

 

 

 

4,215

 

 

 

233

 

 

 

251

 

 

 

300

 

Total mortgage banking income (loss)

 

 

13,179

 

 

13,352

 

 

 

32,802

 

 

 

215

 

 

 

(399

)

 

 

(76

)

Other noninterest income (loss)

 

 

9

 

 

7

 

 

 

(8

)

 

 

5,887

 

 

 

5,980

 

 

 

5,091

 

Total noninterest income

 

 

13,188

 

 

13,359

 

 

 

32,794

 

 

 

6,102

 

 

 

5,581

 

 

 

5,015

 

Noninterest expense

 

 

7,761

 

 

10,467

 

 

 

18,057

 

 

 

26,825

 

 

 

27,396

 

 

 

24,463

 

Income before income taxes

 

 

5,777

 

 

3,463

 

 

 

15,987

 

 

 

12,363

 

 

 

13,530

 

 

 

11,709

 

Provision for income taxes

 

 

1,541

 

 

664

 

 

 

4,333

 

 

 

3,557

 

 

 

3,060

 

 

 

3,435

 

Net income

 

$

4,236

 

$

2,799

 

 

$

11,654

 

 

$

8,806

 

 

$

10,470

 

 

$

8,274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Bancorp, Inc.

COVID Loans at Risk as of March 31, 2022

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At Risk Sectors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

at risk

 

 

 

 

 

 

 

 

 

 

 

 

 

at risk

 

Total

 

sector

 

 

 

Retail

 

Office Space

 

Hotels

 

Restaurants

 

Recreation

 

sectors

 

loans

 

to total

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

249,010

 

$

182,041

 

$

251,081

 

$

16,183

 

$

14,351

 

$

712,666

 

$

1,816,484

 

39.2

%

Commercial and industrial

 

 

31,811

 

 

12,858

 

 

3,134

 

 

21,786

 

 

4,193

 

 

73,782

 

 

410,787

 

18.0

 

Commercial construction

 

 

19,076

 

 

1,028

 

 

9,342

 

 

18,575

 

 

696

 

 

48,717

 

 

154,059

 

31.6

 

Total

 

$

299,897

 

$

195,927

 

$

263,557

 

$

56,544

 

$

19,240

 

$

835,165

 

$

2,381,330

 

35.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PPP loans, net of fees

 

$

522

 

$

 

$

1,252

 

$

1,706

 

$

1,251

 

$

4,731

 

$

13,155

 

36.0

%

Nonaccrual loans

 

$

49

 

$

 

$

10,752

 

$

 

$

 

$

10,801

 

$

26,109

 

41.4

%

 

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