HarborOne Bancorp, Inc. Announces 2021 First Quarter Earnings
HarborOne Bancorp reported a net income of $19.4 million, equating to $0.37 per share for Q1 2021, surpassing both the prior quarter and the same period last year. The quarterly dividend increased by 67% to $0.05 per share. Total assets rose by 2.7% to $4.61 billion, with a 4.8% growth in deposits. Despite a 2.1% decrease in net interest income, noninterest income increased by 2.1%.
Management remains optimistic about growth in a stabilizing economic environment.
- Net income increased to $19.4 million, or $0.37 per share, up 12% from the previous quarter.
- Quarterly dividend raised by 67% to $0.05 per share.
- Deposit growth of $168.4 million, or 4.8%, linked quarter.
- Noninterest income rose by $782,000, or 2.1%, reflecting strong mortgage demand.
- Net interest income decreased by $698,000, or 2.1%, from the prior quarter.
- Anticipated continued margin pressure due to low-interest rates expected throughout 2021.
HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of
Selected First Quarter Financial Highlights:
-
Reported EPS of
$0.37 per share, up12% on a linked quarter basis. -
Increased quarterly dividend by approximately
67% , to$0.05 per share. -
Recorded a provision expense of
$91,000 , reflecting a stabilizing outlook, loan growth and minimal charge-offs. -
HarborOne Mortgage reported net income of
$11.7 million on$760 million of loan closings and a positive fair value adjustment of$4.4 million on mortgage servicing rights. -
Improved return on average assets to
1.73% and improved return on average equity to11.13% . -
Deposit growth of
$168.4 million , or4.8% , on a linked quarter basis with improved cost of funds.
“The fundamentals of the business remain sound and we continue to execute against our strategic plan,” said Jim Blake CEO. “Our new digital appointment banking program is live and we will soon be opening two new branches.” Added Joseph Casey, President and COO, “We have great confidence that we have the right tools and the right team to continue to fuel customer success as we slowly emerge from the impacts of the pandemic.”
Net Interest Income
The Company’s net interest and dividend income was
The quarter over quarter decrease in net interest and dividend income included a decrease of
The decrease in total interest expense primarily reflected a decrease in interest rates, resulting in a 15-basis point decrease in the cost of interest-bearing deposits. The mix of deposits continues to shift as customers move to more liquid options. The average balance of certificates of deposit accounts decreased quarter over quarter by
The increase in net interest and dividend income from the prior year quarter reflected a decrease of
Noninterest Income
Total noninterest income increased
Total noninterest income increased
Noninterest Expense
Total noninterest expenses were
Total noninterest expenses increased
Income Tax Provision
The effective tax rate was
Provision for Loan Losses and Asset Quality
The Company recorded a provision for loan losses of
The provision for loan losses for the quarter ended March 31, 2021 included adjustments based on our quarterly analysis of our historical and peer loss experience rates and commercial loan growth. Given stabilized credit quality trends, we made no additional provision directly related to the COVID-19 pandemic in the first quarter of 2021 as loan deferrals have largely expired without significant delinquency issues, and trends in the at-risk portfolios remained positive. The provision for loan losses for the quarter ended December 31, 2020 included adjustments for our quarterly analysis of our historical and peer loss experience rates, commercial real estate loan growth, and a
In estimating the provision for the COVID-19 pandemic, management considered economic factors, including unemployment rates and the interest rate environment, the volume and dollar amount of requests for payment deferrals, the loan risk profile of each loan type, and whether the loans were purchased. As a result of generally stable trends, management determined additional provisions related to the COVID-19 pandemic were not warranted in the first quarter of 2021. An additional 10 basis points of provisions were provided to the commercial loan categories for the three months ended December 31, 2020, amounting to
Management continues to evaluate our loan portfolio, particularly the commercial loan portfolio, in light of current economic conditions, the mitigating effects of government stimulus, and loan modification efforts designed to limit the long-term impacts of the COVID-19 pandemic. Our commercial loan portfolio is diversified across many sectors and is largely secured by commercial real estate loans, which make up
As of March 31, 2021, the retail sector was
As of March 31, 2021, the office space sector was
As of March 31, 2021, the hotel sector was
The health and social services sector amounted to
As of March 31, 2021, the restaurant sector amounted to
We provided access to the PPP to both our existing customers and new customers, to ensure small businesses in our communities have access to this important lifeline for their businesses. During the first quarter of 2021 we originated
We are also working with commercial loan customers that may need payment deferrals or other accommodations to keep their loans out of default through the COVID-19 pandemic. As of March 31, 2021, we have 169 payment deferrals on commercial loans with a total principal balance of
The residential loan and consumer loan portfolios have not experienced significant credit quality deterioration as of March 31, 2021; however, the continuing impact and uncertain nature of the COVID-19 pandemic may result in increases in delinquencies, charge-offs and loan modifications in these portfolios through the remainder of 2021. As of March 31, 2021, we had 163 payment deferrals on residential mortgage loans with a total principal balance of
Net charge-offs totaled
Credit quality performance has remained strong with total nonperforming assets of
Balance Sheet
Total assets increased
Net loans decreased
Total deposits increased
Total stockholders’ equity was
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 26 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, New Hampshire, Maine, and New Jersey and is licensed to lend in five 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. 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, the negative impacts and disruptions of 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; 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, and future pandemics; changes in regulation; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; 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 Securities and Exchange Commission (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 Bancorp, Inc.’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.
HarborOne Bancorp, Inc. |
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Consolidated Balance Sheet Trend |
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(Unaudited) |
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March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
(in thousands) |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
||||||||||
|
|
|
|
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|
|
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|
|
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Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks |
|
$ |
37,074 |
|
|
$ |
31,777 |
|
|
$ |
29,180 |
|
|
$ |
30,355 |
|
|
$ |
35,264 |
|
Short-term investments |
|
|
281,451 |
|
|
|
174,093 |
|
|
|
108,338 |
|
|
|
218,617 |
|
|
|
200,156 |
|
Total cash and cash equivalents |
|
|
318,525 |
|
|
|
205,870 |
|
|
|
137,518 |
|
|
|
248,972 |
|
|
|
235,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Securities available for sale, at fair value |
|
|
304,168 |
|
|
|
276,498 |
|
|
|
280,308 |
|
|
|
262,710 |
|
|
|
249,789 |
|
Federal Home Loan Bank stock, at cost |
|
|
7,572 |
|
|
|
8,738 |
|
|
|
11,631 |
|
|
|
15,786 |
|
|
|
13,530 |
|
Asset held for sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,536 |
|
|
|
8,536 |
|
Loans held for sale, at fair value |
|
|
210,494 |
|
|
|
208,612 |
|
|
|
190,373 |
|
|
|
158,898 |
|
|
|
118,316 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate |
|
|
1,559,056 |
|
|
|
1,551,265 |
|
|
|
1,380,071 |
|
|
|
1,317,145 |
|
|
|
1,211,435 |
|
Commercial construction |
|
|
112,187 |
|
|
|
99,331 |
|
|
|
211,953 |
|
|
|
194,549 |
|
|
|
160,993 |
|
Commercial and industrial |
|
|
499,728 |
|
|
|
464,393 |
|
|
|
480,129 |
|
|
|
456,192 |
|
|
|
317,559 |
|
Total commercial loans |
|
|
2,170,971 |
|
|
|
2,114,989 |
|
|
|
2,072,153 |
|
|
|
1,967,886 |
|
|
|
1,689,987 |
|
Residential real estate |
|
|
1,062,229 |
|
|
|
1,105,823 |
|
|
|
1,130,935 |
|
|
|
1,151,606 |
|
|
|
1,102,639 |
|
Consumer |
|
|
228,279 |
|
|
|
273,830 |
|
|
|
312,743 |
|
|
|
354,530 |
|
|
|
391,244 |
|
Loans |
|
|
3,461,479 |
|
|
|
3,494,642 |
|
|
|
3,515,831 |
|
|
|
3,474,022 |
|
|
|
3,183,870 |
|
Less: Allowance for loan losses |
|
|
(55,384 |
) |
|
|
(55,395 |
) |
|
|
(49,223 |
) |
|
|
(36,107 |
) |
|
|
(26,389 |
) |
Net loans |
|
|
3,406,095 |
|
|
|
3,439,247 |
|
|
|
3,466,608 |
|
|
|
3,437,915 |
|
|
|
3,157,481 |
|
Mortgage servicing rights, at fair value |
|
|
33,939 |
|
|
|
24,833 |
|
|
|
20,159 |
|
|
|
16,127 |
|
|
|
13,207 |
|
Goodwill |
|
|
69,802 |
|
|
|
69,802 |
|
|
|
69,802 |
|
|
|
69,802 |
|
|
|
69,802 |
|
Other intangible assets |
|
|
4,047 |
|
|
|
4,370 |
|
|
|
4,694 |
|
|
|
5,141 |
|
|
|
5,588 |
|
Other assets |
|
|
251,316 |
|
|
|
245,645 |
|
|
|
247,226 |
|
|
|
241,019 |
|
|
|
229,537 |
|
Total assets |
|
$ |
4,605,958 |
|
|
$ |
4,483,615 |
|
|
$ |
4,428,319 |
|
|
$ |
4,464,906 |
|
|
$ |
4,101,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|||||
|
|
|
|
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|
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Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand deposit accounts |
|
$ |
777,959 |
|
|
$ |
689,672 |
|
|
$ |
650,336 |
|
|
$ |
642,971 |
|
|
$ |
439,793 |
|
NOW accounts |
|
|
224,869 |
|
|
|
218,584 |
|
|
|
202,020 |
|
|
|
199,400 |
|
|
|
174,971 |
|
Regular savings and club accounts |
|
|
1,113,450 |
|
|
|
998,994 |
|
|
|
912,017 |
|
|
|
876,753 |
|
|
|
744,564 |
|
Money market deposit accounts |
|
|
861,867 |
|
|
|
866,661 |
|
|
|
815,644 |
|
|
|
831,653 |
|
|
|
809,622 |
|
Term certificate accounts |
|
|
696,438 |
|
|
|
732,298 |
|
|
|
785,871 |
|
|
|
757,897 |
|
|
|
852,274 |
|
Total deposits |
|
|
3,674,583 |
|
|
|
3,506,209 |
|
|
|
3,365,888 |
|
|
|
3,308,674 |
|
|
|
3,021,224 |
|
Short-term borrowed funds |
|
|
— |
|
|
|
35,000 |
|
|
|
95,000 |
|
|
|
200,000 |
|
|
|
104,000 |
|
Long-term borrowed funds |
|
|
97,488 |
|
|
|
114,097 |
|
|
|
141,106 |
|
|
|
141,114 |
|
|
|
181,123 |
|
Subordinated debt |
|
|
34,064 |
|
|
|
34,033 |
|
|
|
34,002 |
|
|
|
33,970 |
|
|
|
33,938 |
|
Other liabilities and accrued expenses |
|
|
101,750 |
|
|
|
97,962 |
|
|
|
98,220 |
|
|
|
96,693 |
|
|
|
85,782 |
|
Total liabilities |
|
|
3,907,885 |
|
|
|
3,787,301 |
|
|
|
3,734,216 |
|
|
|
3,780,451 |
|
|
|
3,426,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common stock |
|
|
585 |
|
|
|
584 |
|
|
|
584 |
|
|
|
584 |
|
|
|
584 |
|
Additional paid-in capital |
|
|
465,832 |
|
|
|
464,176 |
|
|
|
463,531 |
|
|
|
462,881 |
|
|
|
461,616 |
|
Unearned compensation - ESOP |
|
|
(30,840 |
) |
|
|
(31,299 |
) |
|
|
(31,759 |
) |
|
|
(32,218 |
) |
|
|
(32,678 |
) |
Retained earnings |
|
|
294,116 |
|
|
|
277,312 |
|
|
|
261,304 |
|
|
|
251,032 |
|
|
|
242,080 |
|
Treasury stock |
|
|
(31,460 |
) |
|
|
(16,644 |
) |
|
|
(1,333 |
) |
|
|
(721 |
) |
|
|
(721 |
) |
Accumulated other comprehensive income |
|
|
(160 |
) |
|
|
2,185 |
|
|
|
1,776 |
|
|
|
2,897 |
|
|
|
4,258 |
|
Total stockholders' equity |
|
|
698,073 |
|
|
|
696,314 |
|
|
|
694,103 |
|
|
|
684,455 |
|
|
|
675,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total liabilities and stockholders' equity |
|
$ |
4,605,958 |
|
|
$ |
4,483,615 |
|
|
$ |
4,428,319 |
|
|
$ |
4,464,906 |
|
|
$ |
4,101,206 |
|
HarborOne Bancorp, Inc. |
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Consolidated Statements of Net Income - Trend |
||||||||||||||||||||
(Unaudited) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarters Ended |
||||||||||||||||||
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||
(in thousands, except share data) |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and fees on loans |
|
$ |
33,860 |
|
$ |
35,274 |
|
|
$ |
34,496 |
|
|
$ |
33,970 |
|
|
$ |
34,025 |
|
|
Interest on loans held for sale |
|
|
1,324 |
|
|
|
1,267 |
|
|
|
1,060 |
|
|
|
988 |
|
|
|
577 |
|
Interest on securities |
|
|
585 |
|
|
|
1,064 |
|
|
|
1,317 |
|
|
|
1,424 |
|
|
|
1,808 |
|
Other interest and dividend income |
|
|
78 |
|
|
|
115 |
|
|
|
175 |
|
|
|
239 |
|
|
|
759 |
|
Total interest and dividend income |
|
|
35,847 |
|
|
|
37,720 |
|
|
|
37,048 |
|
|
|
36,621 |
|
|
|
37,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest on deposits |
|
|
2,720 |
|
|
|
3,775 |
|
|
|
4,520 |
|
|
|
5,805 |
|
|
|
8,693 |
|
Interest on FHLB borrowings |
|
|
552 |
|
|
|
671 |
|
|
|
835 |
|
|
|
845 |
|
|
|
1,253 |
|
Interest on subordinated debentures |
|
|
523 |
|
|
|
524 |
|
|
|
524 |
|
|
|
524 |
|
|
|
523 |
|
Total interest expense |
|
|
3,795 |
|
|
|
4,970 |
|
|
|
5,879 |
|
|
|
7,174 |
|
|
|
10,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest and dividend income |
|
|
32,052 |
|
|
|
32,750 |
|
|
|
31,169 |
|
|
|
29,447 |
|
|
|
26,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Provision for loan losses |
|
|
91 |
|
|
|
7,608 |
|
|
|
13,454 |
|
|
|
10,004 |
|
|
|
3,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest and dividend income, after provision for loan losses |
|
|
31,961 |
|
|
|
25,142 |
|
|
|
17,715 |
|
|
|
19,443 |
|
|
|
22,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage banking income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gain on sale of mortgage loans |
|
|
24,802 |
|
|
|
28,274 |
|
|
|
34,055 |
|
|
|
30,862 |
|
|
|
12,278 |
|
Changes in mortgage servicing rights fair value |
|
|
3,409 |
|
|
|
(1,041 |
) |
|
|
(193 |
) |
|
|
(1,111 |
) |
|
|
(4,387 |
) |
Other |
|
|
4,515 |
|
|
|
4,522 |
|
|
|
4,259 |
|
|
|
4,049 |
|
|
|
2,343 |
|
Total mortgage banking income |
|
|
32,726 |
|
|
|
31,755 |
|
|
|
38,121 |
|
|
|
33,800 |
|
|
|
10,234 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposit account fees |
|
|
3,852 |
|
|
|
3,667 |
|
|
|
3,451 |
|
|
|
2,969 |
|
|
|
3,931 |
|
Income on retirement plan annuities |
|
|
104 |
|
|
|
106 |
|
|
|
104 |
|
|
|
103 |
|
|
|
101 |
|
Gain on sale and call of securities, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
2,525 |
|
Bank-owned life insurance income |
|
|
493 |
|
|
|
550 |
|
|
|
560 |
|
|
|
554 |
|
|
|
551 |
|
Other income |
|
|
634 |
|
|
|
949 |
|
|
|
2,203 |
|
|
|
1,143 |
|
|
|
1,296 |
|
Total noninterest income |
|
|
37,809 |
|
|
|
37,027 |
|
|
|
44,439 |
|
|
|
38,577 |
|
|
|
18,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Compensation and benefits |
|
|
27,454 |
|
|
|
27,122 |
|
|
|
29,839 |
|
|
|
27,469 |
|
|
|
21,185 |
|
Occupancy and equipment |
|
|
5,256 |
|
|
|
4,545 |
|
|
|
4,581 |
|
|
|
4,152 |
|
|
|
4,563 |
|
Data processing |
|
|
2,343 |
|
|
|
2,235 |
|
|
|
2,119 |
|
|
|
2,277 |
|
|
|
2,180 |
|
Loan expense |
|
|
2,435 |
|
|
|
2,689 |
|
|
|
3,167 |
|
|
|
2,702 |
|
|
|
1,253 |
|
Marketing |
|
|
813 |
|
|
|
640 |
|
|
|
817 |
|
|
|
1,057 |
|
|
|
876 |
|
Professional fees |
|
|
1,583 |
|
|
|
1,252 |
|
|
|
1,458 |
|
|
|
1,518 |
|
|
|
1,228 |
|
Deposit insurance |
|
|
320 |
|
|
|
320 |
|
|
|
310 |
|
|
|
279 |
|
|
|
271 |
|
Other expenses |
|
|
2,598 |
|
|
|
2,483 |
|
|
|
3,409 |
|
|
|
4,323 |
|
|
|
3,604 |
|
Total noninterest expenses |
|
|
42,802 |
|
|
|
41,286 |
|
|
|
45,700 |
|
|
|
43,777 |
|
|
|
35,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income before income taxes |
|
|
26,968 |
|
|
|
20,883 |
|
|
|
16,454 |
|
|
|
14,243 |
|
|
|
6,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax provision |
|
|
7,576 |
|
|
|
3,283 |
|
|
|
4,561 |
|
|
|
3,668 |
|
|
|
1,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
|
$ |
19,392 |
|
|
$ |
17,600 |
|
|
$ |
11,893 |
|
|
$ |
10,575 |
|
|
$ |
4,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
$ |
0.37 |
|
|
$ |
0.33 |
|
|
$ |
0.22 |
|
|
$ |
0.19 |
|
|
$ |
0.09 |
|
Diluted |
|
$ |
0.37 |
|
|
$ |
0.33 |
|
|
$ |
0.22 |
|
|
$ |
0.19 |
|
|
$ |
0.09 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
|
52,537,409 |
|
|
|
53,947,868 |
|
|
|
54,465,339 |
|
|
|
54,450,146 |
|
|
|
54,392,465 |
|
Diluted |
|
|
53,000,830 |
|
|
|
53,973,737 |
|
|
|
54,465,339 |
|
|
|
54,450,146 |
|
|
|
54,392,465 |
|
HarborOne Bancorp, Inc. |
|||||||||||||||
Consolidated Statements of Net Income |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Three Months Ended March 31, |
|
|
|
|
|||||||||
(dollars in thousands, except share data) |
|
2021 |
|
2020 |
|
$ Change |
|
% Change |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and fees on loans |
|
$ |
33,860 |
|
$ |
34,025 |
|
|
$ |
(165 |
) |
|
(0.5 |
)% |
|
Interest on loans held for sale |
|
|
1,324 |
|
|
|
577 |
|
|
|
747 |
|
|
129.5 |
|
Interest on securities |
|
|
585 |
|
|
|
1,808 |
|
|
|
(1,223 |
) |
|
(67.6 |
) |
Other interest and dividend income |
|
|
78 |
|
|
|
759 |
|
|
|
(681 |
) |
|
(89.7 |
) |
Total interest and dividend income |
|
|
35,847 |
|
|
|
37,169 |
|
|
|
(1,322 |
) |
|
(3.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest on deposits |
|
|
2,720 |
|
|
|
8,693 |
|
|
|
(5,973 |
) |
|
(68.7 |
) |
Interest on FHLB borrowings |
|
|
552 |
|
|
|
1,253 |
|
|
|
(701 |
) |
|
(55.9 |
) |
Interest on subordinated debentures |
|
|
523 |
|
|
|
523 |
|
|
|
— |
|
|
0.0 |
|
Total interest expense |
|
|
3,795 |
|
|
|
10,469 |
|
|
|
(6,674 |
) |
|
(63.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest and dividend income |
|
|
32,052 |
|
|
|
26,700 |
|
|
|
5,352 |
|
|
20.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for loan losses |
|
|
91 |
|
|
|
3,749 |
|
|
|
(3,658 |
) |
|
(97.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest and dividend income, after provision for loan losses |
|
|
31,961 |
|
|
|
22,951 |
|
|
|
9,010 |
|
|
39.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Mortgage banking income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on sale of mortgage loans |
|
|
24,802 |
|
|
|
12,278 |
|
|
|
12,524 |
|
|
102.0 |
|
Changes in mortgage servicing rights fair value |
|
|
3,409 |
|
|
|
(4,387 |
) |
|
|
7,796 |
|
|
177.7 |
|
Other |
|
|
4,515 |
|
|
|
2,343 |
|
|
|
2,172 |
|
|
92.7 |
|
Total mortgage banking income |
|
|
32,726 |
|
|
|
10,234 |
|
|
|
22,492 |
|
|
219.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposit account fees |
|
|
3,852 |
|
|
|
3,931 |
|
|
|
(79 |
) |
|
(2.0 |
) |
Income on retirement plan annuities |
|
|
104 |
|
|
|
101 |
|
|
|
3 |
|
|
3.0 |
|
Gain on sale and call of securities, net |
|
|
— |
|
|
|
2,525 |
|
|
|
(2,525 |
) |
|
(100.0 |
) |
Bank-owned life insurance income |
|
|
493 |
|
|
|
551 |
|
|
|
(58 |
) |
|
(10.5 |
) |
Other income |
|
|
634 |
|
|
|
1,296 |
|
|
|
(662 |
) |
|
(51.1 |
) |
Total noninterest income |
|
|
37,809 |
|
|
|
18,638 |
|
|
|
19,171 |
|
|
102.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits |
|
|
27,454 |
|
|
|
21,185 |
|
|
|
6,269 |
|
|
29.6 |
|
Occupancy and equipment |
|
|
5,256 |
|
|
|
4,563 |
|
|
|
693 |
|
|
15.2 |
|
Data processing |
|
|
2,343 |
|
|
|
2,180 |
|
|
|
163 |
|
|
7.5 |
|
Loan expense |
|
|
2,435 |
|
|
|
1,253 |
|
|
|
1,182 |
|
|
94.3 |
|
Marketing |
|
|
813 |
|
|
|
876 |
|
|
|
(63 |
) |
|
(7.2 |
) |
Professional fees |
|
|
1,583 |
|
|
|
1,228 |
|
|
|
355 |
|
|
28.9 |
|
Deposit insurance |
|
|
320 |
|
|
|
271 |
|
|
|
49 |
|
|
18.1 |
|
Other expenses |
|
|
2,598 |
|
|
|
3,604 |
|
|
|
(1,006 |
) |
|
(27.9 |
) |
Total noninterest expenses |
|
|
42,802 |
|
|
|
35,160 |
|
|
|
7,642 |
|
|
21.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
|
26,968 |
|
|
|
6,429 |
|
|
|
20,539 |
|
|
319.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax provision |
|
|
7,576 |
|
|
|
1,705 |
|
|
|
5,871 |
|
|
344.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
19,392 |
|
|
$ |
4,724 |
|
|
$ |
14,668 |
|
|
310.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.37 |
|
|
$ |
0.09 |
|
|
|
|
|
|
||
Diluted |
|
$ |
0.37 |
|
|
$ |
0.09 |
|
|
|
|
|
|
||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
52,537,409 |
|
|
|
54,392,465 |
|
|
|
|
|
|
||
Diluted |
|
|
53,000,830 |
|
|
|
54,392,465 |
|
|
|
|
|
|
||
HarborOne Bancorp, Inc. |
|||||||||||||||||||||||||
Average Balances / Yields |
|||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended |
|
||||||||||||||||||||||
|
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
||||||||||||||||||
|
|
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) |
|
$ |
271,357 |
|
$ |
585 |
|
0.87 |
% |
$ |
271,511 |
|
$ |
1,064 |
|
1.56 |
% |
$ |
275,632 |
|
$ |
1,822 |
|
2.66 |
% |
Other interest-earning assets |
|
|
180,526 |
|
|
78 |
|
0.18 |
|
|
84,969 |
|
|
115 |
|
0.54 |
|
|
186,619 |
|
|
759 |
|
1.64 |
|
Loans held for sale |
|
|
193,426 |
|
|
1,324 |
|
2.78 |
|
|
178,980 |
|
|
1,267 |
|
2.82 |
|
|
61,548 |
|
|
577 |
|
3.77 |
|
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans (2) |
|
|
2,161,076 |
|
|
20,780 |
|
3.90 |
|
|
2,112,377 |
|
|
20,823 |
|
3.92 |
|
|
1,647,667 |
|
|
18,123 |
|
4.42 |
|
Residential real estate loans (2) |
|
|
1,084,292 |
|
|
10,340 |
|
3.87 |
|
|
1,106,286 |
|
|
11,242 |
|
4.04 |
|
|
1,100,177 |
|
|
11,544 |
|
4.22 |
|
Consumer loans (2) |
|
|
253,014 |
|
|
2,740 |
|
4.39 |
|
|
292,665 |
|
|
3,209 |
|
4.36 |
|
|
415,317 |
|
|
4,358 |
|
4.22 |
|
Total loans |
|
|
3,498,382 |
|
|
33,860 |
|
3.93 |
|
|
3,511,328 |
|
|
35,274 |
|
4.00 |
|
|
3,163,161 |
|
|
34,025 |
|
4.33 |
|
Total interest-earning assets |
|
|
4,143,691 |
|
|
35,847 |
|
3.51 |
|
|
4,046,788 |
|
|
37,720 |
|
3.71 |
|
|
3,686,960 |
|
|
37,183 |
|
4.06 |
|
Noninterest-earning assets |
|
|
330,257 |
|
|
|
|
|
|
|
317,663 |
|
|
|
|
|
|
|
314,193 |
|
|
|
|
|
|
Total assets |
|
$ |
4,473,948 |
|
|
|
|
|
|
$ |
4,364,451 |
|
|
|
|
|
|
$ |
4,001,153 |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
$ |
1,058,820 |
|
|
537 |
|
0.21 |
|
$ |
968,766 |
|
|
621 |
|
0.26 |
|
$ |
686,031 |
|
|
1,298 |
|
0.76 |
|
NOW accounts |
|
|
212,282 |
|
|
37 |
|
0.07 |
|
|
205,845 |
|
|
40 |
|
0.08 |
|
|
158,702 |
|
|
31 |
|
0.08 |
|
Money market accounts |
|
|
861,518 |
|
|
560 |
|
0.26 |
|
|
840,674 |
|
|
710 |
|
0.34 |
|
|
835,154 |
|
|
2,583 |
|
1.24 |
|
Certificates of deposit |
|
|
608,089 |
|
|
1,444 |
|
0.96 |
|
|
649,919 |
|
|
2,206 |
|
1.35 |
|
|
794,883 |
|
|
4,357 |
|
2.20 |
|
Brokered deposits |
|
|
100,000 |
|
|
142 |
|
0.58 |
|
|
109,788 |
|
|
198 |
|
0.72 |
|
|
92,189 |
|
|
424 |
|
1.85 |
|
Total interest-bearing deposits |
|
|
2,840,709 |
|
|
2,720 |
|
0.39 |
|
|
2,774,992 |
|
|
3,775 |
|
0.54 |
|
|
2,566,959 |
|
|
8,693 |
|
1.36 |
|
FHLB advances |
|
|
102,383 |
|
|
552 |
|
2.19 |
|
|
119,763 |
|
|
671 |
|
2.23 |
|
|
241,302 |
|
|
1,253 |
|
2.09 |
|
Subordinated debentures |
|
|
34,048 |
|
|
523 |
|
6.23 |
|
|
34,015 |
|
|
524 |
|
6.13 |
|
|
33,919 |
|
|
523 |
|
6.20 |
|
Total borrowings |
|
|
136,431 |
|
|
1,075 |
|
3.20 |
|
|
153,778 |
|
|
1,195 |
|
3.09 |
|
|
275,221 |
|
|
1,776 |
|
2.60 |
|
Total interest-bearing liabilities |
|
|
2,977,140 |
|
|
3,795 |
|
0.52 |
|
|
2,928,770 |
|
|
4,970 |
|
0.68 |
|
|
2,842,180 |
|
|
10,469 |
|
1.48 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
706,274 |
|
|
|
|
|
|
|
656,227 |
|
|
|
|
|
|
|
419,620 |
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
93,380 |
|
|
|
|
|
|
|
84,387 |
|
|
|
|
|
|
|
67,714 |
|
|
|
|
|
|
Total liabilities |
|
|
3,776,794 |
|
|
|
|
|
|
|
3,669,384 |
|
|
|
|
|
|
|
3,329,514 |
|
|
|
|
|
|
Total stockholders' equity |
|
|
697,154 |
|
|
|
|
|
|
|
695,067 |
|
|
|
|
|
|
|
671,639 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
4,473,948 |
|
|
|
|
|
|
$ |
4,364,451 |
|
|
|
|
|
|
$ |
4,001,153 |
|
|
|
|
|
|
Tax equivalent net interest income |
|
|
|
|
|
32,052 |
|
|
|
|
|
|
|
32,750 |
|
|
|
|
|
|
|
26,714 |
|
|
|
Tax equivalent interest rate spread (3) |
|
|
|
|
|
|
|
2.99 |
% |
|
|
|
|
|
|
3.03 |
% |
|
|
|
|
|
|
2.58 |
% |
Less: tax equivalent adjustment |
|
|
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
14 |
|
|
|
Net interest income as reported |
|
|
|
|
$ |
32,052 |
|
|
|
|
|
|
$ |
32,750 |
|
|
|
|
|
|
$ |
26,700 |
|
|
|
Net interest-earning assets (4) |
|
$ |
1,166,551 |
|
|
|
|
|
|
$ |
1,118,018 |
|
|
|
|
|
|
$ |
844,780 |
|
|
|
|
|
|
Net interest margin (5) |
|
|
|
|
|
|
|
3.14 |
% |
|
|
|
|
|
|
3.22 |
% |
|
|
|
|
|
|
2.91 |
% |
Tax equivalent effect |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
— |
|
Net interest margin on a fully tax equivalent basis |
|
|
|
|
|
|
|
3.14 |
% |
|
|
|
|
|
|
3.22 |
% |
|
|
|
|
|
|
2.91 |
% |
Average interest-earning assets to average interest-bearing liabilities |
|
|
139.18 |
% |
|
|
|
|
|
|
138.17 |
% |
|
|
|
|
|
|
129.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits, including demand deposits |
|
$ |
3,546,983 |
|
$ |
2,720 |
|
|
|
$ |
3,431,219 |
|
$ |
3,775 |
|
|
|
$ |
2,986,579 |
|
$ |
8,693 |
|
|
|
Cost of total deposits |
|
|
|
|
|
|
|
0.31 |
% |
|
|
|
|
|
|
0.44 |
% |
|
|
|
|
|
|
1.17 |
% |
Total funding liabilities, including demand deposits |
|
$ |
3,683,414 |
|
$ |
3,795 |
|
|
|
$ |
3,584,997 |
|
$ |
4,970 |
|
|
|
$ |
3,261,800 |
|
$ |
10,469 |
|
|
|
Cost of total funding liabilities |
|
|
|
|
|
|
|
0.42 |
% |
|
|
|
|
|
|
0.55 |
% |
|
|
|
|
|
|
1.29 |
% |
(1) Includes securities available for sale. Interest income from tax exempt securities is computed on a taxable equivalent basis using a tax rate of |
(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, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
|||||
|
|
(in thousands) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (1) |
|
$ |
271,357 |
|
$ |
271,511 |
|
$ |
269,477 |
|
$ |
240,025 |
|
$ |
275,632 |
|
Other interest-earning assets |
|
|
180,526 |
|
|
84,969 |
|
|
121,384 |
|
|
222,840 |
|
|
186,619 |
|
Loans held for sale |
|
|
193,426 |
|
|
178,980 |
|
|
139,418 |
|
|
119,047 |
|
|
61,548 |
|
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans (2) |
|
|
2,161,076 |
|
|
2,112,377 |
|
|
2,017,492 |
|
|
1,872,349 |
|
|
1,647,667 |
|
Residential real estate loans (2) |
|
|
1,084,292 |
|
|
1,106,286 |
|
|
1,135,947 |
|
|
1,123,896 |
|
|
1,100,177 |
|
Consumer loans (2) |
|
|
253,014 |
|
|
292,665 |
|
|
333,623 |
|
|
372,929 |
|
|
415,317 |
|
Total loans |
|
|
3,498,382 |
|
|
3,511,328 |
|
|
3,487,062 |
|
|
3,369,174 |
|
|
3,163,161 |
|
Total interest-earning assets |
|
|
4,143,691 |
|
|
4,046,788 |
|
|
4,017,341 |
|
|
3,951,086 |
|
|
3,686,960 |
|
Noninterest-earning assets |
|
|
330,257 |
|
|
317,663 |
|
|
333,444 |
|
|
334,452 |
|
|
314,193 |
|
Total assets |
|
$ |
4,473,948 |
|
$ |
4,364,451 |
|
$ |
4,350,785 |
|
$ |
4,285,538 |
|
$ |
4,001,153 |
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
$ |
1,058,820 |
|
$ |
968,766 |
|
$ |
897,751 |
|
$ |
842,560 |
|
$ |
686,031 |
|
NOW accounts |
|
|
212,282 |
|
|
205,845 |
|
|
199,982 |
|
|
187,560 |
|
|
158,702 |
|
Money market accounts |
|
|
861,518 |
|
|
840,674 |
|
|
825,732 |
|
|
826,939 |
|
|
835,154 |
|
Certificates of deposit |
|
|
608,089 |
|
|
649,919 |
|
|
684,002 |
|
|
730,756 |
|
|
794,883 |
|
Brokered deposits |
|
|
100,000 |
|
|
109,788 |
|
|
139,887 |
|
|
66,701 |
|
|
92,189 |
|
Total interest-bearing deposits |
|
|
2,840,709 |
|
|
2,774,992 |
|
|
2,747,354 |
|
|
2,654,516 |
|
|
2,566,959 |
|
FHLB advances |
|
|
102,383 |
|
|
119,763 |
|
|
149,750 |
|
|
258,679 |
|
|
241,302 |
|
Subordinated debentures |
|
|
34,048 |
|
|
34,015 |
|
|
33,983 |
|
|
33,951 |
|
|
33,919 |
|
Total borrowings |
|
|
136,431 |
|
|
153,778 |
|
|
183,733 |
|
|
292,630 |
|
|
275,221 |
|
Total interest-bearing liabilities |
|
|
2,977,140 |
|
|
2,928,770 |
|
|
2,931,087 |
|
|
2,947,146 |
|
|
2,842,180 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
706,274 |
|
|
656,227 |
|
|
641,353 |
|
|
585,715 |
|
|
419,620 |
|
Other noninterest-bearing liabilities |
|
|
93,380 |
|
|
84,387 |
|
|
89,319 |
|
|
72,808 |
|
|
67,714 |
|
Total liabilities |
|
|
3,776,794 |
|
|
3,669,384 |
|
|
3,661,759 |
|
|
3,605,669 |
|
|
3,329,514 |
|
Total stockholders' equity |
|
|
697,154 |
|
|
695,067 |
|
|
689,026 |
|
|
679,869 |
|
|
671,639 |
|
Total liabilities and stockholders' equity |
|
$ |
4,473,948 |
|
$ |
4,364,451 |
|
$ |
4,350,785 |
|
$ |
4,285,538 |
|
$ |
4,001,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Yield Trend - Quarters Ended |
|
|||||||||||||
|
|
March 31, 2021 |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
|||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (1) |
|
|
0.87 |
% |
|
1.56 |
% |
|
1.95 |
% |
|
2.40 |
% |
|
2.66 |
% |
Other interest-earning assets |
|
|
0.18 |
% |
|
0.54 |
% |
|
0.57 |
% |
|
0.43 |
% |
|
1.64 |
% |
Loans held for sale |
|
|
2.78 |
% |
|
2.82 |
% |
|
3.02 |
% |
|
3.34 |
% |
|
3.77 |
% |
Commercial loans (2) |
|
|
3.90 |
% |
|
3.92 |
% |
|
3.76 |
% |
|
3.91 |
% |
|
4.42 |
% |
Residential real estate loans (2) |
|
|
3.87 |
% |
|
4.04 |
% |
|
4.14 |
% |
|
4.23 |
% |
|
4.22 |
% |
Consumer loans (2) |
|
|
4.39 |
% |
|
4.36 |
% |
|
4.29 |
% |
|
4.27 |
% |
|
4.22 |
% |
Total loans |
|
|
3.93 |
% |
|
4.00 |
% |
|
3.94 |
% |
|
4.06 |
% |
|
4.33 |
% |
Total interest-earning assets |
|
|
3.51 |
% |
|
3.71 |
% |
|
3.67 |
% |
|
3.73 |
% |
|
4.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
|
0.21 |
% |
|
0.26 |
% |
|
0.26 |
% |
|
0.40 |
% |
|
0.76 |
% |
NOW accounts |
|
|
0.07 |
% |
|
0.08 |
% |
|
0.08 |
% |
|
0.07 |
% |
|
0.08 |
% |
Money market accounts |
|
|
0.26 |
% |
|
0.34 |
% |
|
0.36 |
% |
|
0.59 |
% |
|
1.24 |
% |
Certificates of deposit |
|
|
0.96 |
% |
|
1.35 |
% |
|
1.68 |
% |
|
1.91 |
% |
|
2.20 |
% |
Brokered deposits |
|
|
0.58 |
% |
|
0.72 |
% |
|
0.72 |
% |
|
1.56 |
% |
|
1.85 |
% |
Total interest-bearing deposits |
|
|
0.39 |
% |
|
0.54 |
% |
|
0.65 |
% |
|
0.88 |
% |
|
1.36 |
% |
FHLB advances |
|
|
2.19 |
% |
|
2.23 |
% |
|
2.22 |
% |
|
1.31 |
% |
|
2.09 |
% |
Subordinated debentures |
|
|
6.23 |
% |
|
6.13 |
% |
|
6.13 |
% |
|
6.21 |
% |
|
6.20 |
% |
Total borrowings |
|
|
3.20 |
% |
|
3.09 |
% |
|
2.94 |
% |
|
1.88 |
% |
|
2.60 |
% |
Total interest-bearing liabilities |
|
|
0.52 |
% |
|
0.68 |
% |
|
0.80 |
% |
|
0.98 |
% |
|
1.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes securities available for sale and securities held to maturity. |
|
|||||||||||||||
(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): |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
|||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROAA) |
|
|
1.73 |
% |
|
1.61 |
% |
|
1.09 |
% |
|
0.99 |
% |
|
0.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity (ROAE) |
|
|
11.13 |
% |
|
10.13 |
% |
|
6.90 |
% |
|
6.22 |
% |
|
2.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
42,802 |
|
$ |
41,286 |
|
$ |
45,700 |
|
$ |
43,777 |
|
$ |
35,160 |
|
Less: Amortization of other intangible assets |
|
|
324 |
|
|
324 |
|
|
447 |
|
|
447 |
|
|
447 |
|
Total adjusted noninterest expense |
|
$ |
42,478 |
|
$ |
40,962 |
|
$ |
45,253 |
|
$ |
43,330 |
|
$ |
34,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income |
|
$ |
32,052 |
|
$ |
32,750 |
|
$ |
31,169 |
|
$ |
29,447 |
|
$ |
26,700 |
|
Total noninterest income |
|
|
37,809 |
|
|
37,027 |
|
|
44,439 |
|
|
38,577 |
|
|
18,638 |
|
Total revenue |
|
$ |
69,861 |
|
$ |
69,777 |
|
$ |
75,608 |
|
$ |
68,024 |
|
$ |
45,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (1) |
|
|
60.80 |
% |
|
58.70 |
% |
|
59.85 |
% |
|
63.70 |
% |
|
76.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
|||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
32,886 |
|
$ |
34,696 |
|
$ |
40,925 |
|
$ |
38,599 |
|
$ |
32,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
|
0.71 |
% |
|
0.77 |
% |
|
0.93 |
% |
|
0.86 |
% |
|
0.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans |
|
|
1.60 |
% |
|
1.59 |
% |
|
1.40 |
% |
|
1.04 |
% |
|
0.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs |
|
$ |
102 |
|
$ |
1,436 |
|
$ |
338 |
|
$ |
286 |
|
$ |
1,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs/average loans |
|
|
0.01 |
% |
|
0.16 |
% |
|
0.04 |
% |
|
0.03 |
% |
|
0.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to nonperforming loans |
|
|
171.20 |
% |
|
162.40 |
% |
|
122.86 |
% |
|
94.86 |
% |
|
83.52 |
% |
HarborOne Bancorp, Inc. |
||||||||||||||||
Selected Financial Highlights |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|||||
Capital and Share Related |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|
|||||
(dollars in thousands, except share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock outstanding |
|
|
56,228,762 |
|
|
57,205,458 |
|
|
58,342,464 |
|
|
58,418,021 |
|
|
58,418,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
12.41 |
|
$ |
12.17 |
|
$ |
11.90 |
|
$ |
11.72 |
|
$ |
11.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
698,073 |
|
$ |
696,314 |
|
$ |
694,103 |
|
$ |
684,455 |
|
$ |
675,139 |
|
Less: Goodwill |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
Less: Other intangible assets (1) |
|
|
4,047 |
|
|
4,370 |
|
|
4,694 |
|
|
5,141 |
|
|
5,588 |
|
Tangible common equity |
|
$ |
624,224 |
|
$ |
622,142 |
|
$ |
619,607 |
|
$ |
609,512 |
|
$ |
599,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share (2) |
|
$ |
11.10 |
|
$ |
10.88 |
|
$ |
10.62 |
|
$ |
10.43 |
|
$ |
10.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,605,958 |
|
$ |
4,483,615 |
|
$ |
4,428,319 |
|
$ |
4,464,906 |
|
$ |
4,101,206 |
|
Less: Goodwill |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
Less: Other intangible assets (1) |
|
|
4,047 |
|
|
4,370 |
|
|
4,694 |
|
|
5,141 |
|
|
5,588 |
|
Tangible assets |
|
$ |
4,532,109 |
|
$ |
4,409,443 |
|
$ |
4,353,823 |
|
$ |
4,389,963 |
|
$ |
4,025,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity / tangible assets (3) |
|
|
13.77 |
% |
|
14.11 |
% |
|
14.23 |
% |
|
13.88 |
% |
|
14.90 |
% |
(1) Other intangible assets includes core deposit intangible and noncompete intangible. |
(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, |
||||||||||||
|
|
2021 |
|
2020 |
|
2020 |
|
2021 |
|
2020 |
|
2020 |
||||||||||||
|
|
(in thousands) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest and dividend income |
|
$ |
1,250 |
|
|
$ |
1,215 |
|
|
$ |
281 |
|
|
$ |
31,248 |
|
|
$ |
31,969 |
|
|
$ |
26,510 |
|
Provision for loan losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
91 |
|
|
|
7,608 |
|
|
|
3,749 |
|
Net interest and dividend income, after provision for loan losses |
|
|
1,250 |
|
|
|
1,215 |
|
|
|
281 |
|
|
|
31,157 |
|
|
|
24,361 |
|
|
|
22,761 |
|
Mortgage banking income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain on sale of mortgage loans |
|
|
24,802 |
|
|
|
28,274 |
|
|
|
12,278 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Intersegment gain (loss) |
|
|
662 |
|
|
|
704 |
|
|
|
400 |
|
|
|
(662 |
) |
|
|
(704 |
) |
|
|
(400 |
) |
Changes in mortgage servicing rights fair value |
|
|
3,123 |
|
|
|
(679 |
) |
|
|
(3,217 |
) |
|
|
286 |
|
|
|
(362 |
) |
|
|
(1,170 |
) |
Other |
|
|
4,215 |
|
|
|
4,193 |
|
|
|
1,992 |
|
|
|
300 |
|
|
|
329 |
|
|
|
351 |
|
Total mortgage banking income (loss) |
|
|
32,802 |
|
|
|
32,492 |
|
|
|
11,453 |
|
|
|
(76 |
) |
|
|
(737 |
) |
|
|
(1,219 |
) |
Other noninterest income (loss) |
|
|
(8 |
) |
|
|
3 |
|
|
|
(122 |
) |
|
|
5,091 |
|
|
|
5,269 |
|
|
|
8,526 |
|
Total noninterest income |
|
|
32,794 |
|
|
|
32,495 |
|
|
|
11,331 |
|
|
|
5,015 |
|
|
|
4,532 |
|
|
|
7,307 |
|
Noninterest expense |
|
|
18,057 |
|
|
|
18,470 |
|
|
|
10,578 |
|
|
|
24,463 |
|
|
|
22,548 |
|
|
|
24,288 |
|
Income before income taxes |
|
|
15,987 |
|
|
|
15,240 |
|
|
|
1,034 |
|
|
|
11,709 |
|
|
|
6,345 |
|
|
|
5,780 |
|
Provision for income taxes |
|
|
4,333 |
|
|
|
4,297 |
|
|
|
239 |
|
|
|
3,435 |
|
|
|
(1,672 |
) |
|
|
1,601 |
|
Net income |
|
$ |
11,654 |
|
|
$ |
10,943 |
|
|
$ |
795 |
|
|
$ |
8,274 |
|
|
$ |
8,017 |
|
|
$ |
4,179 |
|
HarborOne Bancorp, Inc. |
|||||||||||||||||||||||||||
COVID Loans at Risk as of March 31, 2021 |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At Risk Sectors |
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent |
|
||||||||
|
|
|
|
|
|
|
|
Health |
|
|
|
|
|
Total |
|
|
|
at risk |
|
||||||||
|
|
|
|
|
|
|
|
and Social |
|
|
|
|
|
at risk |
|
Total |
|
sector |
|
||||||||
|
|
Retail |
|
Office Space |
|
Hotels |
|
Services |
|
Restaurants |
|
Recreation |
|
sectors |
|
loans |
|
to total |
|
||||||||
|
|
(dollars in thousands) |
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
220,044 |
|
$ |
187,796 |
|
$ |
186,057 |
|
$ |
100,806 |
|
$ |
9,957 |
|
$ |
14,576 |
|
$ |
719,236 |
|
$ |
1,559,056 |
|
46.1 |
% |
Commercial and industrial |
|
|
25,754 |
|
|
15,915 |
|
|
2,441 |
|
|
79,858 |
|
|
30,335 |
|
|
5,327 |
|
|
159,630 |
|
|
499,728 |
|
31.9 |
|
Commercial construction |
|
|
16,287 |
|
|
854 |
|
|
8,080 |
|
|
1,763 |
|
|
12,086 |
|
|
— |
|
|
39,070 |
|
|
112,187 |
|
34.8 |
|
Total |
|
$ |
262,085 |
|
$ |
204,565 |
|
$ |
196,578 |
|
$ |
182,427 |
|
$ |
52,378 |
|
$ |
19,903 |
|
$ |
917,936 |
|
$ |
2,170,971 |
|
42.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding principal, commercial deferrals |
|
$ |
45,228 |
|
$ |
13,495 |
|
$ |
115,932 |
|
$ |
12,546 |
|
$ |
16,352 |
|
$ |
15,460 |
|
$ |
219,013 |
|
$ |
301,762 |
|
72.6 |
% |
PPP loans, net of fees |
|
$ |
1,866 |
|
$ |
— |
|
$ |
194 |
|
$ |
26,817 |
|
$ |
4,060 |
|
$ |
873 |
|
$ |
33,810 |
|
$ |
159,315 |
|
21.2 |
% |
Nonaccrual loans |
|
$ |
387 |
|
$ |
— |
|
$ |
12,217 |
|
$ |
52 |
|
$ |
10 |
|
$ |
— |
|
$ |
12,666 |
|
$ |
32,355 |
|
39.1 |
% |
|
|
|
|
|
|
% Active |
|
|||||||||||||||||||
|
|
|
|
|
|
deferrals to |
|
|||||||||||||||||||
|
Deferrals |
Deferrals |
|
|
Total |
total |
|
|||||||||||||||||||
|
expired & |
expired & |
Active |
Total |
outstanding |
outstanding |
|
|||||||||||||||||||
(dollars in thousands) |
paying |
delinquent |
deferrals |
deferrals |
loans |
loans |
|
|||||||||||||||||||
|
# |
|
$ |
# |
|
$ |
# |
|
$ |
# |
|
$ |
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
66 |
$ |
227,407 |
— |
$ |
— |
5 |
$ |
32,466 |
71 |
$ |
259,873 |
$ |
1,559,056 |
2.1 |
% |
||||||||||
Commercial and industrial |
96 |
|
41,628 |
2 |
|
261 |
— |
|
— |
98 |
|
41,889 |
|
499,728 |
— |
|
||||||||||
Commercial construction |
— |
|
— |
— |
|
— |
— |
|
— |
— |
|
— |
|
112,187 |
— |
|
||||||||||
Total commercial loans |
162 |
$ |
269,035 |
2 |
$ |
261 |
5 |
$ |
32,466 |
169 |
$ |
301,762 |
$ |
2,170,971 |
1.5 |
% |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 Family |
131 |
$ |
39,774 |
7 |
$ |
1,461 |
9 |
$ |
3,653 |
147 |
$ |
44,888 |
$ |
892,263 |
0.4 |
% |
||||||||||
Home Equity |
16 |
|
1,238 |
— |
|
— |
— |
|
— |
16 |
|
1,238 |
|
138,123 |
— |
|
||||||||||
Residential construction |
— |
|
— |
— |
|
— |
— |
|
— |
— |
|
— |
|
31,843 |
— |
|
||||||||||
Total residential real estate |
147 |
$ |
41,012 |
7 |
$ |
1,461 |
9 |
$ |
3,653 |
163 |
$ |
46,126 |
$ |
1,062,229 |
0.3 |
% |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer |
402 |
$ |
9,655 |
16 |
$ |
298 |
16 |
$ |
357 |
434 |
$ |
10,310 |
$ |
228,279 |
0.2 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans |
711 |
$ |
319,702 |
25 |
$ |
2,020 |
30 |
$ |
36,476 |
766 |
$ |
358,198 |
$ |
3,461,479 |
1.1 |
% |
||||||||||
|
|
Active deferrals expiring by quarter |
|||||||||||||
(dollars in thousands) |
|
6/30/2021 |
|
9/30/2021 |
|
12/31/2021 |
|
3/31/2022 |
|
Total |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
21,461 |
|
$ |
3,265 |
|
$ |
7,740 |
|
$ |
— |
|
$ |
32,466 |
Commercial and industrial |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Commercial construction |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Total commercial loans |
|
$ |
21,461 |
|
$ |
3,265 |
|
$ |
7,740 |
|
$ |
— |
|
$ |
32,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-4 Family |
|
$ |
3,653 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
3,653 |
Home equity |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Residential construction |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Total residential real estate |
|
$ |
3,653 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
3,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
$ |
233 |
|
$ |
124 |
|
$ |
— |
|
$ |
— |
|
$ |
357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
25,347 |
|
$ |
3,389 |
|
$ |
7,740 |
|
$ |
— |
|
$ |
36,476 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210427005693/en/
FAQ
What were HarborOne Bancorp's earnings for Q1 2021?
How much did HarborOne Bancorp increase its quarterly dividend?
What factors impacted HarborOne Bancorp’s net interest income in Q1 2021?
What was the growth rate of deposits for HarborOne Bancorp in Q1 2021?
What is the outlook for HarborOne Bancorp's net interest margin?
