HarborOne Bancorp, Inc. Announces 2021 Fourth Quarter and Year End Earnings

Rhea-AI Summary

HarborOne Bancorp (HONE) reported a net income of $58.5 million, or $1.14 per diluted share, for the year ended December 31, 2021, marking a 30.6% increase from 2020. For Q4 2021, net income was $12.6 million, slightly up from Q3 2021's $12.3 million but down from $17.6 million in Q4 2020. Key highlights include 12.1% commercial loan growth and a 9.4% rise in net interest income year-over-year. The company maintained a return on average assets of 1.29% and plans to continue expanding in metro Boston.

Positive

• Net income increased by $13.7 million, or 30.6%, year over year.
• Commercial loan growth of $240.9 million, or 12.1%, excluding PPP loans.
• Net interest income up $11.3 million, or 9.4%, year over year.
• Return on average assets at 1.29% and return on average equity at 8.45%.

Negative

• Total noninterest income decreased 12.9% to $19.2 million in Q4 2021.
• Mortgage loan closings fell from $604.9 million in Q3 2021 to $451.4 million in Q4 2021.
• Total assets decreased by $13.7 million, or 0.3%, from the prior quarter.

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 $58.5 million, or $1.14 per diluted share, for the year ended December 31, 2021, an increase of $13.7 million, or 30.6%, compared to net income of $44.8 million, or $0.82 per diluted share, for the year ended December 31, 2020. For the fourth quarter of 2021, net income was $12.6 million, or $0.25 per diluted share, compared to $12.3 million, or $0.24 per diluted share, for the preceding quarter and $17.6 million, or $0.33 per diluted share, for the quarter ended December 31, 2020.

Selected Financial Highlights:

• For the year ended December 31, 2021, return on average assets was 1.29% and return on average equity was 8.45%.
• Commercial loan growth of $240.9 million, or 12.1%, year over year, excluding U.S. Small Business Administration Paycheck Protection Program (“PPP”) loans.
• Net interest income up $11.3 million, or 9.4%, year over year.
• Recorded a reversal of provision for loan losses of $1.4 million and $7.3 million, for the quarter and year ended December 31, 2021, respectively.
• Cost of deposits down 46 basis points year over year, from 70 basis points to 24 basis points.
• Continued metro Boston expansion, opening three greater Boston branches in the fourth quarter.

“We’re tremendously proud to share our Q4 and 2021 annual performance results with our customers, shareholders, and employees. Our vision for the business, our business strategy, and our execution all came together seamlessly in ’21, despite the challenges. The results are a testament to our teamwork approach, unparalleled commitment to execution excellence, and the benefits of living our values while serving our customers,” said Jim Blake, Chief Executive Officer. “Our performance over the last two years is something we’re all extremely proud of.” “We’re battle tested and resilient, and we look forward to continuing our progress against our strategic plan and bringing our truly unique value proposition to our customers and the communities that we serve in the years ahead,” added Joe Casey, President and Chief Operating Officer.

Net Interest Income

The Company’s net interest and dividend income was $34.0 million for the quarter ended December 31, 2021, up $1.2 million, or 3.6%, from $32.8 million for the quarter ended September 30, 2021 and up $1.2 million, or 3.8%, from $32.8 million for the quarter ended December 31, 2020. The tax equivalent interest rate spread and net interest margin were 3.10% and 3.19%, respectively, for the quarter ended December 31, 2021, compared to 2.97% and 3.08%, respectively, for the quarter ended September 30, 2021, and 3.03% and 3.22%, respectively, for the quarter ended December 31, 2020. Net interest margin and the tax equivalent interest rate spread continue to be impacted by low interest rates, elevated loan prepayments, and the recognition of deferred fees on PPP loan forgiveness. The Federal Home Loan Bank of Boston (“FHLB”) borrowing prepayment on September 30, 2021 of $20.0 million resulted in a 66-basis-point decrease in the cost of those funds. Additionally, the continued favorable repricing of deposits and a 5-basis-point increase in the yield on interest-earning assets positively impacted the spread and margin on a linked quarter basis. Although interest rates may begin to increase in 2022, the positive impact of the recognition of deferred loan fees on PPP loan forgiveness will diminish.

The $545,000 increase in total interest and dividend income primarily reflected a 5-basis-point increase in the yield on average interest-earning assets, as excess funds were invested in mortgage-backed securities. The yield on loans continues to be impacted by the recognition of deferred fees due to PPP loan forgiveness, accretion income and prepayment penalties, although the recent uptick in rates is expected to lessen the impact from these yield adjustments in the future. The three months ended December 31, 2021 and September 30, 2021 include the recognition of deferred fees on PPP loans in the amount of $1.2 million and $1.9 million, respectively. The remaining $949,000 in deferred PPP loan fees are expected to be recognized in the first quarter of 2022 as the loans are forgiven. Interest on loans in the fourth quarter included $634,000 in accretion income from the fair value discount on loans acquired in connection with the merger with Coastway Bancorp, Inc. and $861,000 in prepayment penalties on commercial loans. Accretion income and prepayment penalties in the preceding quarter were $675,000 and $436,000, respectively.

The quarter-over-quarter decrease in total interest expense of $637,000 primarily reflected a decrease in interest rates, resulting in a 6-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 certificate of deposit accounts decreased quarter over quarter by $27.4 million, while the average balance of non-certificate accounts increased $36.1 million from the preceding quarter. Average FHLB advances decreased $28.7 million, and the cost of those funds decreased 66 basis points, resulting in a decrease of $238,000 in interest expense on FHLB advances.

The increase in net interest and dividend income from the prior year quarter reflected a decrease of $2.6 million, or 52.4%, in total interest expense, partially offset by a $1.4 million, or 3.6%, 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 37 basis points, while the average balance increased $92.6 million. The yield on interest-earning assets decreased 30 basis points, while the average balance increased $178.3 million.

Noninterest Income

Total noninterest income decreased $2.8 million, or 12.9%, to $19.2 million for the quarter ended December 31, 2021, from $22.0 million for the quarter ended September 30, 2021. Softening mortgage loan demand resulted in mortgage loan closings of $451.4 million and a gain on loan sales of $10.1 million for the quarter ended December 31, 2021, as compared to $604.9 million in mortgage closings and $12.8 million in gain on sales for the preceding quarter. The locked residential mortgage pipeline decreased $100.8 million and negatively impacted the fair value of the derivative mortgage commitments recorded through the gain on loan sales. The change in the fair value of derivatives included in mortgage banking income was a negative $2.6 million for the three months ended December 31, 2021, as compared to a negative $833,000 for the three months ended September 30, 2021.

The change in the fair value of mortgage servicing rights positively impacted mortgage banking income; however, it was offset by the impact of residential mortgage loan payoffs, resulting in a net decrease of $245,000 and $992,000 in the fair value of mortgage servicing rights for the three months ended December 31, 2021 and September 30, 2021, respectively. The fair value of the mortgage servicing rights increased $1.1 million for the three months ended December 31, 2021, as compared to a $621,000 increase for the three months ended September 30, 2021. Residential mortgage loan payoffs resulted in a decrease of mortgage servicing rights values in the amount of $1.3 million and $1.6 million for the three months ended December 31, 2021 and September 30, 2021, respectively. The 10-year Treasury Constant Maturity rate was flat versus the third quarter of 2021, and prepayments began to slow. 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 increased $125,000, or 2.7%, to $4.8 million for the quarter ended December 31, 2021, from $4.7 million for the quarter ended September 30, 2021. Other income for the quarter ended December 31, 2021 includes a write-off of $431,000 on a direct interest-rate swap related to a non-accrual loan. The quarter ended September 30, 2021 included gain on sale of securities in the amount of $241,000, and no such gain on sale of securities was recorded in the fourth quarter of 2021.

Total noninterest income decreased $17.9 million, or 48.2%, as compared to the quarter ended December 31, 2020, primarily due to an $18.6 million, or 58.5%, decrease in mortgage banking income, driven by the decrease in loan closings and narrowing gain-on-sale margins in 2021. The decrease in mortgage banking income was offset by a $1.1 million increase in deposit account fees as deposit fees were reinstated in 2021.

Noninterest Expense

Total noninterest expenses were $38.2 million for the quarter ended December 31, 2021, a decrease of $1.1 million, or 2.8%, from the quarter ended September 30, 2021. During the third quarter of 2021, the Bank paid a $1.1 million prepayment penalty on Federal Home Loan Bank borrowings, and no such penalty was paid in the fourth quarter of 2021. Loan expense decreased $591,000, reflecting the decrease in residential mortgage loan closings at HarborOne Mortgage, LLC (“HarborOne Mortgage”).

Total noninterest expenses decreased $3.1 million, or 7.5%, from the quarter ended December 31, 2020. Compensation and benefits decreased $2.6 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 23.2% for the quarter ended December 31, 2021, compared to 28.6% for the quarter ended September 30, 2021 and 15.7% for the quarter ended December 31, 2020. 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 statute of limitations. The effective tax rate for the quarter ended December 31, 2020 was impacted by a 2016 federal tax refund of $1.9 million recognized on the expiration of the statute of limitations.

Provision for Loan Losses and Asset Quality

The Company recorded a reversal of provision for loan losses of $1.4 million for the quarter ended December 31, 2021, compared to a reversal of provision of $1.6 million for the quarter ended September 30, 2021 and a provision for loan losses of $7.6 million for the quarter ended December 31, 2020. The allowance for loan losses was $45.4 million, or 1.26% of total loans, at December 31, 2021, compared to $48.0 million, or 1.39% of total loans, at September 30, 2021 and $55.4 million, or 1.59% of total loans, at December 31, 2020. The provision for loan losses is impacted by specific reserves, charge-offs, changes in historical charge-off trends, and adjusted for management’s assessment of certain qualitative factors including, loan portfolio growth and composition changes, ongoing evaluations of credit quality trends and current economic conditions.

Net charges-offs totaled $1.2 million, or 0.13% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2021. During the fourth quarter, there was a $1.4 million charge-off on a single credit previously reserved for in a prior period. Net charge-offs totaled $1.7 million, or 0.19% of average loans outstanding on an annualized basis, for the quarter ended September 30, 2021, and net charge-offs totaled $1.4 million, or 0.16% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2020.

Credit quality performance has remained strong with total nonperforming assets of $36.2 million at December 31, 2021, compared to $36.5 million at September 30, 2021 and $34.7 million at December 31, 2020. Nonperforming assets as a percentage of total assets were 0.79% at December 31, 2021, 0.80% at September 30, 2021, and 0.77% at December 31, 2020.

At the start of the COVID-19 pandemic, management established a COVID-19 pandemic qualitative factor. In estimating the provision for the COVID-19 pandemic, management considers economic factors, including unemployment rates and the interest rate environment, and trends in the pandemic, such as vaccination and case rates. Positive economic trends in the fourth quarter of 2021, were offset by rising COVID-19 cases, despite strong vaccination rates in our market area, and resulted in management increasing the provision related to COVID-19. For the year ended December 31, 2021, the provision for the COVID-19 pandemic has decreased.

We provided payment deferrals and other accommodations to certain of our commercial loan customers whose businesses were impacted by the COVID-19 pandemic and the related mitigation efforts. As of December 31, 2021, all payment deferrals have expired. There are three commercial loans with expired deferrals, amounting to $2.7 million, that are delinquent and on non-accrual status. There is one commercial credit in the amount of $8.8 million whose deferral has expired and is current, but is on non-accrual status.

We had previously provided access to the PPP to both our existing customers and new customers, to ensure that small businesses in the communities we serve had access to this important lifeline for their businesses. As of December 31, 2021, outstanding PPP loans amounted to $27.0 million, and there was $949,000 in deferred processing fee income. We expect to complete the forgiveness process on the remaining PPP loans by the end of the first quarter of 2022.

The residential loan and consumer loan portfolios have not experienced significant credit quality deterioration as of December 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 in 2022. As of December 31, 2021, all payment deferrals on residential mortgage loans had expired. As of December 31, 2021, seven residential real estate loans with expired deferrals and a total outstanding principal balance of $978,000 are delinquent, and four of those loans, amounting to $735,000, are in non-accrual status. We have no active payment deferrals on consumer loans, eight loans with expired deferrals and a total outstanding principal balance of $163,000 that are delinquent. Requests for additional extensions on residential mortgage loans and consumer loans were not significant as of December 31, 2021.

Management continues to assess the impact of the COVID-19 pandemic on our commercial loan portfolio, in light of current economic conditions and the effects of government actions to diminish the spread of new variants of the virus. Our commercial loan portfolio is diversified across many sectors and is largely secured by commercial real estate loans, which make up 75.3% of the total commercial loan portfolio. Management has identified and monitors 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 $800.2 million at December 31, 2021, which represents 35.4% of the commercial loan portfolio. The at-risk sectors include $671.5 million in commercial real estate loans, $79.4 million in commercial and industrial loans, and $49.2 million in commercial construction loans. Non-performing loans included in the at-risk sectors amounted to $20.4 million at December 31, 2021, the majority of which was $10.9 million included in the hotels sector and $8.8 million included in the office space sector.

Although we have identified certain sectors that have the potential to be more susceptible to negative impacts of the COVID-19 pandemic, as trends largely continue to improve, we continue to make prudent lending decisions that include these sectors. For the year ended December 31, 2021, we originated $214.6 million loans in the at-risk sectors, including $101.9 million in the hotel sector. These hotel sector credits are generally secured by low to moderately leveraged real estate with solid operating metrics and strong sponsorship, and are typically to existing customers that have a track record of performance with the bank.

Balance Sheet

Total assets decreased $13.7 million, or 0.3%, to $4.55 billion at December 31, 2021 from $4.57 billion at September 30, 2021. The decrease primarily reflects a decrease of $117.9 million in short-term investments and a $31.4 million decrease in loans held for sale, partially offset by increases of $152.6 million in net loans and $3.5 million in securities available for sale. Short-term investments were primarily used to fund the loan growth.

Net loans increased $152.6 million, or 4.5%, to $3.56 billion at December 31, 2021 from $3.41 billion at September 30, 2021. The net increase in loans for the three months ended December 31, 2021 was primarily due to increases in commercial real estate loans of $126.6 million, residential mortgage loans of $57.3 million, and commercial and industrial loans of $6.8 million, partially offset by decreases in commercial construction loans of $16.1 million and consumer loans of $24.6 million. The decrease in commercial and industrial loans is primarily due to forgiveness of PPP loans during the quarter. Excluding the change in PPP loans, total commercial loans increased $143.4 million, primarily due to an increase in commercial real loans. The allowance for loan losses was $45.4 million at December 31, 2021 and $48.0 million at September 30, 2021, the change primarily reflecting a negative $1.4 million provision for loan losses and $1.2 million in net loan charge-offs recorded in the fourth quarter.

Total deposits were $3.68 billion at December 31, 2021 and $3.69 billion at September 30, 2021. Compared to the prior quarter, non-certificate accounts increased $20.2 million, and term certificate accounts decreased $31.9 million. FHLB borrowings were flat at $55.7 million at December 31, 2021 and September 30, 2021. Three branches acquired from East Boston Savings Bank in Brighton, Cambridge and Brookline were opened during the quarter. The opening of an additional Brighton branch has been delayed due to a permitting issue.

Total stockholders’ equity was $679.3 million at December 31, 2021, compared to $680.0 million at September 30, 2021 and $696.3 million at December 31, 2020. The Company adopted a third share repurchase program on September 17, 2021 to repurchase up to 2,668,159 shares of the Company’s common stock, or approximately 5% of the Company’s outstanding shares. The Company had repurchased 800,364 shares at an average price of $14.55 under the third share repurchase program as of December 31, 2021. The tangible common equity-to-tangible-assets ratio was 13.53% at December 31, 2021, 13.50% at September 30, 2021, and 14.11% at December 31, 2020. At December 31, 2021, 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, 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 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)
		December 31,				September 30,				June 30,				March 31,				December 31,
(in thousands)		2021				2021				2021				2021				2020
Assets
Cash and due from banks		$	35,549			$	42,589			$	41,328			$	37,074			$	31,777
Short-term investments			159,170				277,050				374,319				281,451				174,093
Total cash and cash equivalents			194,719				319,639				415,647				318,525				205,870
Securities available for sale, at fair value			394,036				390,552				353,848				304,168				276,498
Federal Home Loan Bank stock, at cost			5,931				6,828				7,241				7,572				8,738
Asset held for sale			881				881				—				—				—
Loans held for sale, at fair value			45,642				77,052				103,886				210,494				208,612
Loans:
Commercial real estate			1,699,877				1,573,284				1,561,873				1,559,056				1,551,265
Commercial construction			136,563				152,685				107,585				112,187				99,331
Commercial and industrial			421,608				414,814				467,479				499,728				464,393
Total commercial loans			2,258,048				2,140,783				2,136,937				2,170,971				2,114,989
Residential real estate			1,217,980				1,160,689				1,096,370				1,062,229				1,105,823
Consumer			131,705				156,272				186,430				228,279				273,830
Loans			3,607,733				3,457,744				3,419,737				3,461,479				3,494,642
Less: Allowance for loan losses			(45,377	)			(47,988	)			(51,273	)			(55,384	)			(55,395	)
Net loans			3,562,356				3,409,756				3,368,464				3,406,095				3,439,247
Mortgage servicing rights, at fair value			38,268				36,540				35,955				33,939				24,833
Goodwill			69,802				69,802				69,802				69,802				69,802
Other intangible assets			3,164				3,399				3,723				4,047				4,370
Other assets			238,606				252,645				257,856				251,316				245,645
Total assets		$	4,553,405			$	4,567,094			$	4,616,422			$	4,605,958			$	4,483,615
Liabilities and Stockholders' Equity
Deposits:
Demand deposit accounts		$	743,051			$	756,917			$	800,118			$	777,959			$	689,672
NOW accounts			313,733				300,577				250,099				224,869				218,584
Regular savings and club accounts			1,138,979				1,144,595				1,123,123				1,113,450				998,994
Money market deposit accounts			858,970				832,441				832,006				861,867				866,661
Term certificate accounts			627,916				659,850				682,594				696,438				732,298
Total deposits			3,682,649				3,694,380				3,687,940				3,674,583				3,506,209
Short-term borrowed funds			—				—				—				—				35,000
Long-term borrowed funds			55,711				55,720				87,479				97,488				114,097
Subordinated debt			34,159				34,128				34,096				34,064				34,033
Other liabilities and accrued expenses			101,625				102,834				101,436				101,750				97,962
Total liabilities			3,874,144				3,887,062				3,910,951				3,907,885				3,787,301
Common stock			585				585				585				585				584
Additional paid-in capital			469,934				468,526				467,194				465,832				464,176
Unearned compensation - ESOP			(29,461	)			(29,921	)			(30,380	)			(30,840	)			(31,299	)
Retained earnings			325,699				315,683				305,831				294,116				277,312
Treasury stock			(85,859	)			(73,723	)			(38,588	)			(31,460	)			(16,644	)
Accumulated other comprehensive income (loss)			(1,637	)			(1,118	)			829				(160	)			2,185
Total stockholders' equity			679,261				680,032				705,471				698,073				696,314
Total liabilities and stockholders' equity		$	4,553,405			$	4,567,094			$	4,616,422			$	4,605,958			$	4,483,615

HarborOne Bancorp, Inc.
Consolidated Statements of Net Income - Trend
(Unaudited)
		Quarters Ended
		December 31,				September 30,				June 30,				March 31,			December 31,
(in thousands, except share data)		2021				2021				2021				2021			2020
Interest and dividend income:
Interest and fees on loans		$	34,177			$	33,680			$	34,106			$	33,860		$	35,274
Interest on loans held for sale			501				665				852				1,324			1,267
Interest on securities			1,541				1,293				793				585			1,064
Other interest and dividend income			134				170				136				78			115
Total interest and dividend income			36,353				35,808				35,887				35,847			37,720
Interest expense:
Interest on deposits			1,651				2,050				2,302				2,720			3,775
Interest on FHLB borrowings			193				431				531				552			671
Interest on subordinated debentures			524				524				524				523			524
Total interest expense			2,368				3,005				3,357				3,795			4,970
Net interest and dividend income			33,985				32,803				32,530				32,052			32,750
(Credit) provision for loan losses			(1,436	)			(1,627	)			(4,286	)			91			7,608
Net interest and dividend income, after (credit) provision for loan losses			35,421				34,430				36,816				31,961			25,142
Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans			10,063				12,756				14,262				24,802			28,274
Changes in mortgage servicing rights fair value			(245	)			(992	)			(2,552	)			3,409			(1,041	)
Other			3,359				3,882				4,075				4,515			4,522
Total mortgage banking income			13,177				15,646				15,785				32,726			31,755
Deposit account fees			4,783				4,658				4,546				3,852			3,667
Income on retirement plan annuities			109				108				106				104			106
Gain on sale and call of securities, net			—				241				—				—			—
Bank-owned life insurance income			506				515				508				493			550
Other income			589				842				758				634			949
Total noninterest income			19,164				22,010				21,703				37,809			37,027
Noninterest expenses:
Compensation and benefits			24,564				24,760				25,146				27,454			27,122
Occupancy and equipment			4,923				4,765				4,702				5,256			4,545
Data processing			2,244				2,205				2,362				2,343			2,235
Loan expense			732				1,323				1,250				2,435			2,689
Marketing			1,120				880				831				813			640
Professional fees			1,443				1,362				1,487				1,583			1,252
Deposit insurance			345				341				332				320			320
Prepayment penalties on Federal Home Loan Bank advances			—				1,095				—				—			—
Other expenses			2,817				2,543				2,488				2,598			2,483
Total noninterest expenses			38,188				39,274				38,598				42,802			41,286
Income before income taxes			16,397				17,166				19,921				26,968			20,883
Income tax provision			3,807				4,907				5,645				7,576			3,283
Net income		$	12,590			$	12,259			$	14,276			$	19,392		$	17,600
Earnings per common share:
Basic		$	0.26			$	0.25			$	0.28			$	0.37		$	0.33
Diluted		$	0.25			$	0.24			$	0.27			$	0.37		$	0.33
Weighted average shares outstanding:
Basic			48,918,539				49,801,123				51,778,293				52,537,409			53,947,868
Diluted			49,828,379				50,663,415				52,650,071				53,000,830			53,973,737

HarborOne Bancorp, Inc.
Consolidated Statements of Net Income
(Unaudited)
		For the Years Ended December 31,
(dollars in thousands, except share data)		2021				2020				$ Change				% Change
Interest and dividend income:
Interest and fees on loans		$	135,823			$	137,765			$	(1,942	)		(1.4	)%
Interest on loans held for sale			3,342				3,892				(550	)		(14.1	)
Interest on securities			4,212				5,613				(1,401	)		(25.0	)
Other interest and dividend income			518				1,288				(770	)		(59.8	)
Total interest and dividend income			143,895				148,558				(4,663	)		(3.1	)
Interest expense:
Interest on deposits			8,723				22,793				(14,070	)		(61.7	)
Interest on FHLB borrowings			1,707				3,604				(1,897	)		(52.6	)
Interest on subordinated debentures			2,095				2,095				—			0.0
Total interest expense			12,525				28,492				(15,967	)		(56.0	)
Net interest and dividend income			131,370				120,066				11,304			9.4
(Credit) provision for loan losses			(7,258	)			34,815				(42,073	)		(120.8	)
Net interest and dividend income, after (credit) provision for loan losses			138,628				85,251				53,377			62.6
Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans			61,883				105,469				(43,586	)		(41.3	)
Changes in mortgage servicing rights fair value			(380	)			(6,732	)			6,352			94.4
Other			15,831				15,172				659			4.3
Total mortgage banking income			77,334				113,909				(36,575	)		(32.1	)
Deposit account fees			17,839				14,018				3,821			27.3
Income on retirement plan annuities			427				414				13			3.1
Gain on sale and call of securities, net			241				2,533				(2,292	)		(90.5	)
Bank-owned life insurance income			2,022				2,215				(193	)		(8.7	)
Other income			2,823				5,591				(2,768	)		(49.5	)
Total noninterest income			100,686				138,680				(37,994	)		(27.4	)
Noninterest expenses:
Compensation and benefits			101,924				105,615				(3,691	)		(3.5	)
Occupancy and equipment			19,646				17,841				1,805			10.1
Data processing			9,154				8,811				343			3.9
Loan expense			5,740				9,810				(4,070	)		(41.5	)
Marketing			3,644				3,390				254			7.5
Professional fees			5,875				5,456				419			7.7
Deposit insurance			1,338				1,180				158			13.4
Prepayment penalties on Federal Home Loan Bank advances			1,095				—				1,095			100.0
Other expenses			10,446				13,819				(3,373	)		(24.4	)
Total noninterest expenses			158,862				165,922				(7,060	)		(4.3	)
Income before income taxes			80,452				58,009				22,443			38.7
Income tax provision			21,935				13,217				8,718			66.0
Net income		$	58,517			$	44,792			$	13,725			30.6	%
Earnings per common share:
Basic		$	1.15			$	0.82
Diluted		$	1.14			$	0.82
Weighted average shares outstanding:
Basic			50,746,302				54,313,368
Diluted			51,523,135				54,319,835

HarborOne Bancorp, Inc.
Average Balances / Yields
(Unaudited)
		Quarters Ended
		December 31, 2021								September 30, 2021								December 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)		$	394,301		$	1,541		1.55	%	$	358,927		$	1,293		1.43	%	$	271,511		$	1,064		1.56	%
Other interest-earning assets			286,026			134		0.19			372,892			170		0.18			84,969			115		0.54
Loans held for sale			63,833			501		3.11			84,399			665		3.13			178,980			1,267		2.82
Loans
Commercial loans (2)			2,165,739			22,658		4.15			2,121,432			22,394		4.19			2,112,377			20,823		3.92
Residential real estate loans (2)			1,171,608			9,870		3.34			1,121,898			9,352		3.31			1,106,286			11,242		4.04
Consumer loans (2)			143,577			1,649		4.56			170,366			1,934		4.50			292,665			3,209		4.36
Total loans			3,480,924			34,177		3.90			3,413,696			33,680		3.91			3,511,328			35,274		4.00
Total interest-earning assets			4,225,084			36,353		3.41			4,229,914			35,808		3.36			4,046,788			37,720		3.71
Noninterest-earning assets			337,310								347,060								317,663
Total assets		$	4,562,394							$	4,576,974							$	4,364,451
Interest-bearing liabilities:
Savings accounts		$	1,147,855			247		0.09		$	1,136,131			365		0.13		$	968,766			621		0.26
NOW accounts			300,459			40		0.05			283,725			45		0.06			205,845			40		0.08
Money market accounts			839,977			307		0.15			832,340			392		0.19			840,674			710		0.34
Certificates of deposit			543,208			878		0.64			570,570			1,087		0.76			649,919			2,206		1.35
Brokered deposits			100,000			179		0.71			100,000			161		0.64			109,788			198		0.72
Total interest-bearing deposits			2,931,499			1,651		0.22			2,922,766			2,050		0.28			2,774,992			3,775		0.54
FHLB advances			55,714			193		1.37			84,438			431		2.03			119,763			671		2.23
Subordinated debentures			34,144			524		6.09			34,111			524		6.09			34,015			524		6.13
Total borrowings			89,858			717		3.17			118,549			955		3.20			153,778			1,195		3.09
Total interest-bearing liabilities			3,021,357			2,368		0.31			3,041,315			3,005		0.39			2,928,770			4,970		0.68
Noninterest-bearing liabilities:
Noninterest-bearing deposits			768,361								756,927								656,227
Other noninterest-bearing liabilities			92,034								90,366								84,387
Total liabilities			3,881,752								3,888,608								3,669,384
Total stockholders' equity			680,642								688,366								695,067
Total liabilities and stockholders' equity		$	4,562,394							$	4,576,974							$	4,364,451
Tax equivalent net interest income						33,985								32,803								32,750
Tax equivalent interest rate spread (3)								3.10	%							2.97	%							3.03	%
Less: tax equivalent adjustment						—								—								-
Net interest income as reported					$	33,985							$	32,803							$	32,750
Net interest-earning assets (4)		$	1,203,727							$	1,188,599							$	1,118,018
Net interest margin (5)								3.19	%							3.08	%							3.22	%
Tax equivalent effect								—								—								—
Net interest margin on a fully tax equivalent basis								3.19	%							3.08	%							3.22	%
Average interest-earning assets to average interest-bearing liabilities			139.84	%							139.08	%							138.17	%
Supplemental information:
Total deposits, including demand deposits		$	3,699,860		$	1,651				$	3,679,693		$	2,050				$	3,431,219		$	3,775
Cost of total deposits								0.18	%							0.22	%							0.44	%
Total funding liabilities, including demand deposits		$	3,789,718		$	2,368				$	3,798,242		$	3,005				$	3,584,997		$	4,970
Cost of total funding liabilities								0.25	%							0.31	%							0.55	%
(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 / Yields
(Unaudited)
		Years Ended
		December 31, 2021								December 31, 2020
		Average								Average
		Outstanding						Yield/		Outstanding						Yield/
		Balance			Interest			Cost		Balance			Interest			Cost
		(dollars in thousands)
Interest-earning assets:
Investment securities (1)		$	337,843		$	4,212		1.25	%	$	264,196		$	5,635		2.13	%
Other interest-earning assets			309,819			518		0.17			153,676			1,288		0.84
Loans held for sale			113,788			3,342		2.94			124,936			3,892		3.12
Loans
Commercial loans (2)			2,150,022			87,911		4.09			1,913,304			76,208		3.98
Residential real estate loans (2)			1,110,840			39,309		3.54			1,116,601			46,430		4.16
Consumer loans (2)			192,841			8,603		4.46			353,412			15,127		4.28
Total loans			3,453,703			135,823		3.93			3,383,317			137,765		4.07
Total interest-earning assets			4,215,153			143,895		3.41			3,926,125			148,580		3.78
Noninterest-earning assets			338,559								324,942
Total assets		$	4,553,712							$	4,251,067
Interest-bearing liabilities:
Savings accounts		$	1,115,626			1,610		0.14		$	849,239			3,342		0.39
NOW accounts			257,201			163		0.06			188,103			143		0.08
Money market accounts			846,756			1,676		0.20			832,131			5,245		0.63
Certificates of deposit			577,760			4,638		0.80			714,628			12,930		1.81
Brokered deposits			100,000			636		0.64			102,265			1,133		1.11
Total interest-bearing deposits			2,897,343			8,723		0.30			2,686,366			22,793		0.85
FHLB advances			84,711			1,707		2.02			192,059			3,604		1.88
Subordinated debentures			34,096			2,095		6.14			33,967			2,095		6.17
Total borrowings			118,807			3,802		3.20			226,026			5,699		2.52
Total interest-bearing liabilities			3,016,150			12,525		0.42			2,912,392			28,492		0.98
Noninterest-bearing liabilities:
Noninterest-bearing deposits			754,198								576,128
Other noninterest-bearing liabilities			91,084								78,602
Total liabilities			3,861,432								3,567,122
Total stockholders' equity			692,280								683,945
Total liabilities and stockholders' equity		$	4,553,712							$	4,251,067
Tax equivalent net interest income						131,370								120,088
Tax equivalent interest rate spread (3)								2.99	%							2.80	%
Less: tax equivalent adjustment						—								22
Net interest income as reported					$	131,370							$	120,066
Net interest-earning assets (4)		$	1,199,003							$	1,013,733
Net interest margin (5)								3.12	%							3.06	%
Tax equivalent effect								—								—
Net interest margin on a fully tax equivalent basis								3.12	%							3.06	%
Average interest-earning assets to average interest-bearing liabilities			139.75	%							134.81	%
Supplemental information:
Total deposits, including demand deposits		$	3,651,541		$	8,723				$	3,262,494		$	22,793
Cost of total deposits								0.24	%							0.70	%
Total funding liabilities, including demand deposits		$	3,770,348		$	12,525				$	3,488,520		$	28,492
Cost of total funding liabilities								0.33	%							0.82	%
(1) Interest income from tax exempt securities is computed on a tax equivalent basis using a tax rate of 21%. The yield on investments before tax equivalent adjustments was 2.12% for the year ended December 31, 2020.
(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.

HarborOne Bancorp, Inc.
Average Balances and Yield Trend
(Unaudited)
		Average Balances - Trend - Quarters Ended
		December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
		(in thousands)
Interest-earning assets:
Investment securities (1)		$	394,301		$	358,927		$	325,205		$	271,357		$	271,511
Other interest-earning assets			286,026			372,892			397,979			180,526			84,969
Loans held for sale			63,833			84,399			115,240			193,426			178,980
Loans
Commercial loans (2)			2,165,739			2,121,432			2,152,105			2,161,076			2,112,377
Residential real estate loans (2)			1,171,608			1,121,898			1,064,481			1,084,292			1,106,286
Consumer loans (2)			143,577			170,366			205,856			253,014			292,665
Total loans			3,480,924			3,413,696			3,422,442			3,498,382			3,511,328
Total interest-earning assets			4,225,084			4,229,914			4,260,866			4,143,691			4,046,788
Noninterest-earning assets			337,310			347,060			339,438			330,257			317,663
Total assets		$	4,562,394		$	4,576,974		$	4,600,304		$	4,473,948		$	4,364,451
Interest-bearing liabilities:
Savings accounts		$	1,147,855		$	1,136,131		$	1,118,494		$	1,058,820		$	968,766
NOW accounts			300,459			283,725			231,075			212,282			205,845
Money market accounts			839,977			832,340			853,586			861,518			840,674
Certificates of deposit			543,208			570,570			589,964			608,089			649,919
Brokered deposits			100,000			100,000			100,000			100,000			109,788
Total interest-bearing deposits			2,931,499			2,922,766			2,893,119			2,840,709			2,774,992
FHLB advances			55,714			84,438			96,823			102,383			119,763
Subordinated debentures			34,144			34,111			34,080			34,048			34,015
Total borrowings			89,858			118,549			130,903			136,431			153,778
Total interest-bearing liabilities			3,021,357			3,041,315			3,024,022			2,977,140			2,928,770
Noninterest-bearing liabilities:
Noninterest-bearing deposits			768,361			756,927			784,521			706,274			656,227
Other noninterest-bearing liabilities			92,034			90,366			88,577			93,380			84,387
Total liabilities			3,881,752			3,888,608			3,897,120			3,776,794			3,669,384
Total stockholders' equity			680,642			688,366			703,184			697,154			695,067
Total liabilities and stockholders' equity		$	4,562,394		$	4,576,974		$	4,600,304		$	4,473,948		$	4,364,451
		Annualized Yield Trend - Quarters Ended
		December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
Interest-earning assets:
Investment securities (1)			1.55	%		1.43	%		0.98	%		0.87	%		1.56	%
Other interest-earning assets			0.19	%		0.18	%		0.14	%		0.18	%		0.54	%
Loans held for sale			3.11	%		3.13	%		2.97	%		2.78	%		2.82	%
Commercial loans (2)			4.15	%		4.19	%		4.11	%		3.90	%		3.92	%
Residential real estate loans (2)			3.34	%		3.31	%		3.67	%		3.87	%		4.04	%
Consumer loans (2)			4.56	%		4.50	%		4.44	%		4.39	%		4.36	%
Total loans			3.90	%		3.91	%		4.00	%		3.93	%		4.00	%
Total interest-earning assets			3.41	%		3.36	%		3.38	%		3.51	%		3.71	%
Interest-bearing liabilities:
Savings accounts			0.09	%		0.13	%		0.17	%		0.21	%		0.26	%
NOW accounts			0.05	%		0.06	%		0.07	%		0.07	%		0.08	%
Money market accounts			0.15	%		0.19	%		0.20	%		0.26	%		0.34	%
Certificates of deposit			0.64	%		0.76	%		0.84	%		0.96	%		1.35	%
Brokered deposits			0.71	%		0.64	%		0.62	%		0.58	%		0.72	%
Total interest-bearing deposits			0.22	%		0.28	%		0.32	%		0.39	%		0.54	%
FHLB advances			1.37	%		2.03	%		2.20	%		2.19	%		2.23	%
Subordinated debentures			6.09	%		6.09	%		6.17	%		6.23	%		6.13	%
Total borrowings			3.17	%		3.20	%		3.23	%		3.20	%		3.09	%
Total interest-bearing liabilities			0.31	%		0.39	%		0.45	%		0.52	%		0.68	%
(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
		December 31,			September 30,			June 30,			March 31,			December 31,
Performance Ratios (annualized):		2021			2021			2021			2021			2020
(dollars in thousands)
Return on average assets (ROAA)			1.10	%		1.07	%		1.24	%		1.73	%		1.61	%
Return on average equity (ROAE)			7.40	%		7.12	%		8.12	%		11.13	%		10.13	%
Total noninterest expense		$	38,188		$	39,274		$	38,598		$	42,802		$	41,286
Less: Amortization of other intangible assets			235			324			324			324			324
Total adjusted noninterest expense		$	37,953		$	38,950		$	38,274		$	42,478		$	40,962
Net interest and dividend income		$	33,985		$	32,803		$	32,530		$	32,052		$	32,750
Total noninterest income			19,164			22,010			21,703			37,809			37,027
Total revenue		$	53,149		$	54,813		$	54,233		$	69,861		$	69,777
Efficiency ratio (1)			71.41	%		71.06	%		70.57	%		60.80	%		58.70	%
(1) This non-GAAP measure represents adjusted noninterest expense divided by total revenue

		At or for the Quarters Ended
		December 31,			September 30,			June 30,			March 31,			December 31,
Asset Quality		2021			2021			2021			2021			2020
(dollars in thousands)
Total nonperforming assets		$	36,186		$	36,514		$	32,732		$	32,886		$	34,696
Nonperforming assets to total assets			0.79	%		0.80	%		0.71	%		0.71	%		0.77	%
Allowance for loan losses to total loans			1.26	%		1.39	%		1.50	%		1.60	%		1.59	%
Net charge-offs		$	1,174		$	1,658		$	(175)		$	102		$	1,436
Annualized net charge-offs/average loans			0.13	%		0.19	%		(0.02)	%		0.01	%		0.16	%
Allowance for loan losses to nonperforming loans			125.60	%		131.50	%		158.10	%		171.20	%		162.40	%

HarborOne Bancorp, Inc.
Selected Financial Highlights
(Unaudited)
		December 31,			September 30,			June 30,			March 31,			December 31,
Capital and Share Related		2021			2021			2021			2021			2020
(dollars in thousands, except share data)
Common stock outstanding			52,390,478			53,232,110			55,735,623			56,228,762			57,205,458
Book value per share		$	12.97		$	12.77		$	12.66		$	12.41		$	12.17
Tangible common equity:
Total stockholders' equity		$	679,261		$	680,032		$	705,471		$	698,073		$	696,314
Less: Goodwill			69,802			69,802			69,802			69,802			69,802
Less: Other intangible assets (1)			3,164			3,399			3,723			4,047			4,370
Tangible common equity		$	606,295		$	606,831		$	631,946		$	624,224		$	622,142
Tangible book value per share (2)		$	11.57		$	11.40		$	11.34		$	11.10		$	10.88
Tangible assets:
Total assets		$	4,553,405		$	4,567,094		$	4,616,422		$	4,605,958		$	4,483,615
Less: Goodwill			69,802			69,802			69,802			69,802			69,802
Less: Other intangible assets			3,164			3,399			3,723			4,047			4,370
Tangible assets		$	4,480,439		$	4,493,893		$	4,542,897		$	4,532,109		$	4,409,443
Tangible common equity / tangible assets (3)			13.53	%		13.50	%		13.91	%		13.77	%		14.11	%
(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
		December 31,				September 30,				December 31,				December 31,				September 30,				December 31,
		2021				2021				2020				2021				2021				2020
		(in thousands)
Net interest and dividend income		$	571			$	792			$	1,215			$	33,909			$	32,494			$	31,969
Provision for loan losses			—				—				—				(1,436	)			(1,627	)			7,608
Net interest and dividend income, after provision for loan losses			571				792				1,215				35,345				34,121				24,361
Mortgage banking income:
Gain on sale of mortgage loans			10,063				12,756				28,274				—				—				—
Intersegment gain (loss)			496				2,366				704				(720	)			(1,373	)			(704	)
Changes in mortgage servicing rights fair value			(315	)			(918	)			(679	)			70				(74	)			(362	)
Other			3,108				3,619				4,193				251				263				329
Total mortgage banking income (loss)			13,352				17,823				32,492				(399	)			(1,184	)			(737	)
Other noninterest income (loss)			7				25				3				5,980				6,339				5,269
Total noninterest income			13,359				17,848				32,495				5,581				5,155				4,532
Noninterest expense			10,467				12,387				18,470				27,396				26,570				22,548
Income before income taxes			3,463				6,253				15,240				13,530				12,706				6,345
Provision for income taxes			664				1,559				4,297				3,060				3,575				(1,672	)
Net income		$	2,799			$	4,694			$	10,943			$	10,470			$	9,131			$	8,017

		HarborOne Mortgage								HarborOne Bank
		For the Years Ended								For the Years Ended
		December 31,				December 31,				December 31,				December 31,
		2021				2020				2021				2020
		(in thousands)
Net interest and dividend income		$	3,468			$	3,235			$	129,785			$	118,217
Provision for loan losses			—				—				(7,258	)			34,815
Net interest and dividend income, after provision for loan losses			3,468				3,235				137,043				83,402
Mortgage banking income:
Gain on sale of mortgage loans			61,883				105,469				—				—
Intersegment gain (loss)			4,434				3,148				(3,665	)			(3,148	)
Changes in mortgage servicing rights fair value			(243	)			(4,356	)			(137	)			(2,376	)
Other			14,741				13,812				1,090				1,360
Total mortgage banking income (loss)			80,815				118,073				(2,712	)			(4,164	)
Other noninterest income (loss)			44				(138	)			23,308				24,909
Total noninterest income			80,859				117,935				20,596				20,745
Noninterest expense			55,012				66,393				102,557				98,354
Income before income taxes			29,315				54,777				55,082				5,793
Provision (benefit) for income taxes			7,569				12,964				14,933				527
Net income		$	21,746			$	41,813			$	40,149			$	5,266

HarborOne Bancorp, Inc.
COVID Loans at Risk as of December 31, 2021
(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		$	221,197		$	189,704		$	229,733		$	16,331		$	14,583		$	671,548		$	1,699,877		39.5	%
Commercial and industrial			30,472			13,075			2,982			28,071			4,781			79,381			421,608		18.8
Commercial construction			20,330			1,028			8,980			18,196			707			49,241			136,563		36.1
Total		$	271,999		$	203,807		$	241,695		$	62,598		$	20,071		$	800,170		$	2,258,048		35.4	%
Outstanding principal, active commercial deferrals		$	—		$	—		$	—		$	—		$	—		$	—		$	2,258,048		—	%
Outstanding principal, expired and delinquent commercial deferrals		$	—		$	515		$	2,202		$	—		$	—		$	2,717		$	2,258,048		0.1	%
PPP loans, net of fees		$	1,111		$	—		$	1,266		$	3,590		$	1,596		$	7,563		$	26,054		29.0	%
Nonaccrual loans		$	387		$	8,843		$	10,872		$	334		$	—		$	20,436		$	36,133		56.6	%
New loan originations within the sector year to date*		$	48,787		$	31,535		$	101,949		$	24,500		$	7,813		$	214,584		$	2,258,048		9.5	%
*Balance represents original amount and includes unadvanced amounts on lines of credit and construction loans

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220126005897/en/

Linda Simmons, EVP, CFO 617 895-1379

Source: HarborOne Bancorp, Inc.

FAQ

What were the earnings results for HarborOne Bancorp in 2021?

In 2021, HarborOne Bancorp reported a net income of $58.5 million, or $1.14 per diluted share, representing an increase of 30.6% compared to 2020.

How did commercial loan growth impact HarborOne's financials?

Commercial loan growth was $240.9 million, or 12.1%, excluding PPP loans, significantly contributing to the overall financial performance.

What are the key financial highlights for HarborOne in Q4 2021?

In Q4 2021, HarborOne reported a net income of $12.6 million, a slight increase from Q3 2021, but a decrease compared to Q4 2020's $17.6 million.

What challenges did HarborOne face in Q4 2021?

HarborOne faced challenges such as a 12.9% decrease in noninterest income and reduced mortgage loan closings, which fell to $451.4 million in Q4 2021.