HarborOne Bancorp, Inc. Announces 2023 Fourth Quarter Results
- Deposit growth of $172.7 million, or 4.4%, year over year.
- Strong asset quality; nonperforming loans as a percentage of total loans were 0.37% compared to 0.39% last quarter.
- Reduced noninterest expense by 8.2% year over year.
- Loan growth of $200.6 million, or 4.4%, year over year.
- Repurchased 570,527 shares at an average cost of $10.15 per share, totaling $5.8 million.
- Redeemed $35 million subordinated debt with an 8.45% interest rate.
- Full impairment of goodwill at Harbor One Mortgage, LLC.
- Lowest annual residential mortgage loan origination volume in two decades due to high mortgage rates and low housing inventory.
- Net loss of $7.1 million for the fourth quarter of 2023.
Insights
The reported net income of $16.1 million for HarborOne Bancorp, Inc. represents a significant year-over-year decline of 64.7%, indicating a substantial decrease in profitability. This decline is largely attributed to the full impairment of goodwill at HarborOne Mortgage, which reflects broader challenges in the mortgage banking industry, such as high mortgage rates and a low-inventory housing market. It is imperative to note that goodwill impairment is a non-cash charge, meaning it does not directly affect the company's liquidity or regulatory capital ratios. However, it can indicate a permanent reduction in the value of acquired assets, potentially affecting investor perceptions and future earnings potential.
The exclusion of the goodwill impairment charge paints a different picture, with adjusted net income and diluted earnings per share for the year showing a more modest decline. This adjustment is crucial for investors to consider when evaluating the core operating performance of HarborOne. Additionally, the company's loan growth of 4.4% and deposit growth, excluding brokered deposits, are positive indicators of the bank's underlying financial health and its ability to attract and retain customers.
The redemption of $35 million in subordinated debt with a high-interest rate of 8.45% is a strategic move that will likely reduce interest expenses and improve net interest margin going forward. The continued share repurchase program indicates management's confidence in the intrinsic value of the company's stock, which can be a positive signal to investors. Overall, while the impairment charge is a setback, the underlying financial metrics suggest resilience and strategic management actions that may support future performance.
HarborOne's experience is indicative of a larger trend within the mortgage banking sector, which has faced significant headwinds due to rising mortgage rates and a challenging housing market. The reported lowest annual residential mortgage loan origination volume in two decades highlights the industry's cyclical nature and sensitivity to macroeconomic factors such as interest rates and housing supply. For stakeholders, this underscores the importance of closely monitoring economic indicators that could signal shifts in the mortgage market.
The bank's strategic focus on building a relationship bank model, as mentioned by the President and CEO, is a noteworthy approach in the context of the banking industry's increasing emphasis on customer-centric growth. This model, coupled with the reported growth in deposit market share, suggests that HarborOne is strengthening its competitive position, which could translate into more stable and diversified revenue streams over the long term.
The reduction in noninterest expense, excluding the goodwill impairment, by 8.2% year over year, demonstrates prudent cost management. This is a critical factor for maintaining profitability, especially during periods of reduced revenue growth. Investors should consider the bank's operational efficiency and cost control measures as key factors in assessing its long-term financial stability and potential for value creation.
The dynamics of the mortgage banking industry, as evidenced by HarborOne's results, are closely tied to broader economic conditions. The increase in average residential mortgage rates to twenty-year highs is reflective of monetary policy tightening by the Federal Reserve in response to inflationary pressures. This has a direct impact on the demand for mortgage loans, as higher rates typically reduce affordability for potential homebuyers.
The bank's deposit growth is a positive signal in terms of consumer confidence and liquidity in the banking system. It also indicates that despite the external economic pressures, HarborOne has been able to maintain and even grow its customer base. However, investors should remain cautious and consider the potential for a cooling housing market to impact the bank's mortgage-related revenues in the future.
The economic implications of the bank's decision to redeem high-interest subordinated debt are twofold. First, it reduces the cost of capital, which is beneficial during a time of rising interest rates. Second, it signals a strong capital position and financial management strategy, which is reassuring in times of economic uncertainty. This action, along with the share repurchase program, suggests that the bank is taking proactive steps to manage its balance sheet and shareholder value in a challenging economic environment.
The results for the quarter and year ended December 31, 2023 were significantly impacted by the full impairment of goodwill at Harbor One Mortgage, LLC (“HarborOne Mortgage”) in the amount of
Excluding the HarborOne Mortgage goodwill impairment charge of
Selected Financial Highlights:
-
Deposit growth, excluding brokered deposits, of
$172.7 million 4.4% , year over year. -
Strong asset quality; nonperforming loans as a percentage of total loans were
0.37% compared to0.39% last quarter -
Excluding the goodwill impairment, reduced noninterest expense
8.2% year over year. -
Loan growth of
$200.6 million 4.4% , year over year. -
Continued share repurchase program, repurchasing 570,527 shares at an average cost of
$10.15 $5.8 million -
Redeemed
$35 million 8.45% interest rate.
“I am very proud of the progress our team is making in building our relationship bank model,” said Joseph F. Casey, President and CEO. “We have customer deposit growth of over
Net Interest Income
The Company’s net interest and dividend income was
On December 1, 2023, the Company elected to redeem its subordinated notes in the amount of
On a linked-quarter basis, the decreases in net interest and dividend income, tax equivalent interest rate spread, and net interest margin primarily reflect a higher cost of funding, partially offset by increased loan balances and yields, with liability repricing outpacing assets. While the yield on interest-earning assets increased 7 basis points from the preceding quarter, the cost of interest-bearing liabilities increased 21 basis points, in a competitive deposit pricing market.
The
The quarter and year-to-date results reflect the continuing impact of the successive federal funds rate increases that occurred from March 2022 to July 2023 totaling 525 basis points. The current market expectations for 2024 suggest falling rates throughout the year, although pressure may remain on deposit pricing in competitive markets as financial institutions continue to prioritize customer deposit funding.
Noninterest Income
Total noninterest income decreased
Persistent low inventory of for-sale residential real estate and elevated mortgage interest rates continued to impact the results of HarborOne Mortgage with gain on loan sales of
Total noninterest income for the quarter and year ended December 31, 2023 included a
Total noninterest income decreased
Noninterest Expense
Total noninterest expense increased
Total noninterest expense increased
Asset Quality and Allowance for Credit Losses
Total nonperforming assets were
The Company recorded a provision for loan credit losses of
The ACL on loans was
Management continues to closely monitor the loan portfolio for signs of deterioration in light of speculation that commercial real estate values may deteriorate as the market adjusts to higher vacancies and interest rates. The commercial real estate portfolio is centered in New England, with approximately
Management also continues to monitor certain sectors within the commercial real estate segment that may be particularly susceptible to increased credit risk as a result of trends that were precipitated by the COVID-19 pandemic and may be exacerbated by current economic conditions. This includes business-oriented hotels, non-anchored retail space, and metro office space. As of December 31, 2023, business-oriented hotels loans included 14 loans with a total outstanding balance of
Balance Sheet
Total assets were
Available-for-sale securities were
Loans increased
Total deposits were
FHLB borrowings increased
Total stockholders’ equity was
(1) This non-GAAP ratio is net loss less goodwill impairment to weighted average shares outstanding on a diluted basis.
(2) This non-GAAP ratio is total stockholders equity less goodwill and intangible assets to total assets less goodwill and intangible assets.
About HarborOne Bancorp, Inc.
HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a
Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in general business and economic conditions (including inflation and concerns about inflation) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in interest rates; changes in customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; acquisitions may not produce results at levels or within time frames originally anticipated; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the SEC, which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.
Use of Non-GAAP Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The Company’s management believes that the supplemental non-GAAP information, which consists of income statement results excluding the goodwill impairment charge, total noninterest expense excluding the goodwill impairment charge, diluted earnings per share excluding the impairment charge, Return on average assets (ROAA), excluding the goodwill impairment charge, Return on average equity (ROAE), excluding goodwill impairment charge, the efficiency ratio, efficiency ratio excluding the goodwill impairment charge, tangible common equity to tangible assets ratio and tangible book value per share, is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
HarborOne Bancorp, Inc. Consolidated Balance Sheet Trend (Unaudited) |
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December 31, |
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September 30, |
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June 30, |
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March 31, |
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December 31, |
|||||
(in thousands) |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||||
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|
|
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|
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|
Assets |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
38,876 |
|
$ |
38,573 |
|
$ |
43,525 |
|
$ |
38,989 |
|
$ |
39,712 |
Short-term investments |
|
|
188,474 |
|
|
208,211 |
|
|
209,326 |
|
|
210,765 |
|
|
58,305 |
Total cash and cash equivalents |
|
|
227,350 |
|
|
246,784 |
|
|
252,851 |
|
|
249,754 |
|
|
98,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale, at fair value |
|
|
290,151 |
|
|
271,078 |
|
|
292,012 |
|
|
303,059 |
|
|
301,149 |
Securities held to maturity, at amortized cost |
|
|
19,796 |
|
|
19,795 |
|
|
19,839 |
|
|
19,838 |
|
|
19,949 |
Federal Home Loan Bank stock, at cost |
|
|
27,098 |
|
|
23,378 |
|
|
27,123 |
|
|
23,589 |
|
|
20,071 |
Asset held for sale |
|
|
348 |
|
|
966 |
|
|
966 |
|
|
— |
|
|
— |
Loans held for sale, at fair value |
|
|
19,686 |
|
|
17,796 |
|
|
20,949 |
|
|
13,956 |
|
|
18,544 |
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
2,343,675 |
|
|
2,349,886 |
|
|
2,286,688 |
|
|
2,286,727 |
|
|
2,250,344 |
Commercial construction |
|
|
208,443 |
|
|
191,224 |
|
|
228,902 |
|
|
212,689 |
|
|
199,311 |
Commercial and industrial |
|
|
466,443 |
|
|
450,547 |
|
|
453,422 |
|
|
423,036 |
|
|
424,275 |
Total commercial loans |
|
|
3,018,561 |
|
|
2,991,657 |
|
|
2,969,012 |
|
|
2,922,452 |
|
|
2,873,930 |
Residential real estate |
|
|
1,709,714 |
|
|
1,706,950 |
|
|
1,701,766 |
|
|
1,667,934 |
|
|
1,634,319 |
Consumer |
|
|
22,036 |
|
|
24,247 |
|
|
27,425 |
|
|
32,246 |
|
|
41,421 |
Loans |
|
|
4,750,311 |
|
|
4,722,854 |
|
|
4,698,203 |
|
|
4,622,632 |
|
|
4,549,670 |
Less: Allowance for credit losses on loans |
|
|
(47,972) |
|
|
(48,312) |
|
|
(47,821) |
|
|
(46,994) |
|
|
(45,236) |
Net loans |
|
|
4,702,339 |
|
|
4,674,542 |
|
|
4,650,382 |
|
|
4,575,638 |
|
|
4,504,434 |
Mortgage servicing rights, at fair value |
|
|
46,111 |
|
|
49,201 |
|
|
48,176 |
|
|
47,080 |
|
|
48,138 |
Goodwill |
|
|
59,042 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
Other intangible assets |
|
|
1,515 |
|
|
1,704 |
|
|
1,893 |
|
|
2,082 |
|
|
2,272 |
Other assets |
|
|
274,460 |
|
|
289,341 |
|
|
275,261 |
|
|
268,060 |
|
|
277,169 |
Total assets |
|
$ |
5,667,896 |
|
$ |
5,664,387 |
|
$ |
5,659,254 |
|
$ |
5,572,858 |
|
$ |
5,359,545 |
|
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|
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Liabilities and Stockholders' Equity |
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Deposits: |
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|
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|
|
|
Demand deposit accounts |
|
$ |
659,973 |
|
$ |
708,847 |
|
$ |
717,572 |
|
$ |
726,548 |
|
$ |
762,576 |
NOW accounts |
|
|
305,825 |
|
|
289,141 |
|
|
286,956 |
|
|
287,376 |
|
|
297,692 |
Regular savings and club accounts |
|
|
1,265,315 |
|
|
1,324,635 |
|
|
1,390,906 |
|
|
1,455,318 |
|
|
1,468,172 |
Money market deposit accounts |
|
|
966,201 |
|
|
951,128 |
|
|
834,120 |
|
|
796,008 |
|
|
861,704 |
Term certificate accounts |
|
|
863,457 |
|
|
859,266 |
|
|
742,931 |
|
|
653,553 |
|
|
497,975 |
Brokered deposits |
|
|
326,638 |
|
|
276,941 |
|
|
315,003 |
|
|
322,927 |
|
|
301,380 |
Total deposits |
|
|
4,387,409 |
|
|
4,409,958 |
|
|
4,287,488 |
|
|
4,241,730 |
|
|
4,189,499 |
FHLB borrowings |
|
|
568,462 |
|
|
475,470 |
|
|
604,568 |
|
|
590,665 |
|
|
400,675 |
Subordinated debt |
|
|
— |
|
|
34,380 |
|
|
34,348 |
|
|
34,317 |
|
|
34,285 |
Other liabilities and accrued expenses |
|
|
128,266 |
|
|
159,945 |
|
|
137,318 |
|
|
106,352 |
|
|
118,110 |
Total liabilities |
|
|
5,084,137 |
|
|
5,079,753 |
|
|
5,063,722 |
|
|
4,973,064 |
|
|
4,742,569 |
|
|
|
|
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|
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|
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Common stock |
|
|
598 |
|
|
597 |
|
|
597 |
|
|
597 |
|
|
596 |
Additional paid-in capital |
|
|
486,502 |
|
|
485,144 |
|
|
484,544 |
|
|
483,831 |
|
|
483,031 |
Unearned compensation - ESOP |
|
|
(25,785) |
|
|
(26,245) |
|
|
(26,704) |
|
|
(27,164) |
|
|
(27,623) |
Retained earnings |
|
|
359,656 |
|
|
369,930 |
|
|
364,709 |
|
|
360,454 |
|
|
356,438 |
Treasury stock |
|
|
(193,590) |
|
|
(187,803) |
|
|
(181,324) |
|
|
(175,514) |
|
|
(148,384) |
Accumulated other comprehensive loss |
|
|
(43,622) |
|
|
(56,989) |
|
|
(46,290) |
|
|
(42,410) |
|
|
(47,082) |
Total stockholders' equity |
|
|
583,759 |
|
|
584,634 |
|
|
595,532 |
|
|
599,794 |
|
|
616,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
5,667,896 |
|
$ |
5,664,387 |
|
$ |
5,659,254 |
|
$ |
5,572,858 |
|
$ |
5,359,545 |
HarborOne Bancorp, Inc. Consolidated Statements of Net Income - Trend (Unaudited) |
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Quarters Ended |
|||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|||||
(in thousands, except share data) |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||||
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|
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Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
59,499 |
|
$ |
58,124 |
|
$ |
55,504 |
|
$ |
52,771 |
|
$ |
49,177 |
Interest on loans held for sale |
|
|
369 |
|
|
370 |
|
|
326 |
|
|
286 |
|
|
334 |
Interest on securities |
|
|
2,001 |
|
|
2,003 |
|
|
2,035 |
|
|
2,079 |
|
|
2,045 |
Other interest and dividend income |
|
|
2,516 |
|
|
2,667 |
|
|
2,935 |
|
|
803 |
|
|
359 |
Total interest and dividend income |
|
|
64,385 |
|
|
63,164 |
|
|
60,800 |
|
|
55,939 |
|
|
51,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
27,310 |
|
|
25,039 |
|
|
20,062 |
|
|
15,913 |
|
|
8,499 |
Interest on FHLB and FRB borrowings |
|
|
6,260 |
|
|
6,439 |
|
|
8,114 |
|
|
5,105 |
|
|
3,703 |
Interest on subordinated debentures |
|
|
1,122 |
|
|
606 |
|
|
524 |
|
|
523 |
|
|
524 |
Total interest expense |
|
|
34,692 |
|
|
32,084 |
|
|
28,700 |
|
|
21,541 |
|
|
12,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income |
|
|
29,693 |
|
|
31,080 |
|
|
32,100 |
|
|
34,398 |
|
|
39,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for credit losses |
|
|
644 |
|
|
(113) |
|
|
3,283 |
|
|
1,866 |
|
|
2,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income, after provision for credit losses |
|
|
29,049 |
|
|
31,193 |
|
|
28,817 |
|
|
32,532 |
|
|
37,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of mortgage loans |
|
|
2,176 |
|
|
2,704 |
|
|
3,300 |
|
|
2,224 |
|
|
2,301 |
Changes in mortgage servicing rights fair value |
|
|
(3,553) |
|
|
125 |
|
|
436 |
|
|
(1,692) |
|
|
(2,631) |
Other |
|
|
2,301 |
|
|
2,270 |
|
|
2,312 |
|
|
2,216 |
|
|
2,325 |
Total mortgage banking income |
|
|
924 |
|
|
5,099 |
|
|
6,048 |
|
|
2,748 |
|
|
1,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit account fees |
|
|
5,178 |
|
|
5,133 |
|
|
5,012 |
|
|
4,733 |
|
|
5,031 |
Income on retirement plan annuities |
|
|
147 |
|
|
146 |
|
|
128 |
|
|
119 |
|
|
118 |
Bank-owned life insurance income |
|
|
1,207 |
|
|
531 |
|
|
511 |
|
|
500 |
|
|
501 |
Other income |
|
|
1,448 |
|
|
689 |
|
|
963 |
|
|
590 |
|
|
2,255 |
Total noninterest income |
|
|
8,904 |
|
|
11,598 |
|
|
12,662 |
|
|
8,690 |
|
|
9,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
19,199 |
|
|
18,699 |
|
|
18,220 |
|
|
17,799 |
|
|
20,104 |
Occupancy and equipment |
|
|
4,670 |
|
|
4,430 |
|
|
4,633 |
|
|
5,040 |
|
|
4,935 |
Data processing |
|
|
2,474 |
|
|
2,548 |
|
|
2,403 |
|
|
2,346 |
|
|
2,359 |
Loan (income) expense |
|
|
(317) |
|
|
385 |
|
|
417 |
|
|
313 |
|
|
169 |
Marketing |
|
|
811 |
|
|
794 |
|
|
925 |
|
|
1,181 |
|
|
862 |
Professional fees |
|
|
1,690 |
|
|
1,374 |
|
|
1,114 |
|
|
1,501 |
|
|
1,446 |
Deposit insurance |
|
|
795 |
|
|
1,004 |
|
|
1,176 |
|
|
510 |
|
|
385 |
Goodwill impairment |
|
|
10,760 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Other expenses |
|
|
3,132 |
|
|
2,638 |
|
|
2,837 |
|
|
2,819 |
|
|
4,384 |
Total noninterest expenses |
|
|
43,214 |
|
|
31,872 |
|
|
31,725 |
|
|
31,509 |
|
|
34,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes |
|
|
(5,261) |
|
|
10,919 |
|
|
9,754 |
|
|
9,713 |
|
|
12,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
|
1,850 |
|
|
2,507 |
|
|
2,275 |
|
|
2,416 |
|
|
2,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(7,111) |
|
$ |
8,412 |
|
$ |
7,479 |
|
$ |
7,297 |
|
$ |
9,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Losses) earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.17) |
|
$ |
0.20 |
|
$ |
0.17 |
|
$ |
0.16 |
|
$ |
0.21 |
Diluted |
|
$ |
(0.17) |
|
$ |
0.20 |
|
$ |
0.17 |
|
$ |
0.16 |
|
$ |
0.21 |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
42,111,872 |
|
|
42,876,893 |
|
|
43,063,507 |
|
|
44,857,224 |
|
|
45,321,491 |
Diluted |
|
|
42,299,858 |
|
|
42,983,477 |
|
|
43,133,455 |
|
|
45,284,240 |
|
|
45,861,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HarborOne Bancorp, Inc. Consolidated Statements of Net Income - Trend (Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, |
|
|
|
|
|
|||||
(dollars in thousands, except share data) |
|
2023 |
|
2022 |
|
$ Change |
|
% Change |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
225,898 |
|
$ |
162,340 |
|
$ |
63,558 |
|
39.2 |
% |
Interest on loans held for sale |
|
|
1,351 |
|
|
1,306 |
|
|
45 |
|
3.4 |
|
Interest on securities |
|
|
8,118 |
|
|
7,590 |
|
|
528 |
|
7.0 |
|
Other interest and dividend income |
|
|
8,921 |
|
|
694 |
|
|
8,227 |
|
1185.4 |
|
Total interest and dividend income |
|
|
244,288 |
|
|
171,930 |
|
|
72,358 |
|
42.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
88,324 |
|
|
15,630 |
|
|
72,694 |
|
465.1 |
|
Interest on FHLB and FRB borrowings |
|
|
25,918 |
|
|
5,219 |
|
|
20,699 |
|
396.6 |
|
Interest on subordinated debentures |
|
|
2,775 |
|
|
2,095 |
|
|
680 |
|
32.5 |
|
Total interest expense |
|
|
117,017 |
|
|
22,944 |
|
|
94,073 |
|
410.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income |
|
|
127,271 |
|
|
148,986 |
|
|
(21,715) |
|
(14.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
5,680 |
|
|
5,660 |
|
|
20 |
|
0.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income, after provision for credit losses |
|
|
121,591 |
|
|
143,326 |
|
|
(21,735) |
|
(15.2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking income: |
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of mortgage loans |
|
|
10,404 |
|
|
15,970 |
|
|
(5,566) |
|
(34.9) |
|
Changes in mortgage servicing rights fair value |
|
|
(4,684) |
|
|
5,332 |
|
|
(10,016) |
|
(187.8) |
|
Other |
|
|
9,099 |
|
|
9,948 |
|
|
(849) |
|
(8.5) |
|
Total mortgage banking income |
|
|
14,819 |
|
|
31,250 |
|
|
(16,431) |
|
(52.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit account fees |
|
|
20,056 |
|
|
19,265 |
|
|
791 |
|
4.1 |
|
Income on retirement plan annuities |
|
|
540 |
|
|
456 |
|
|
84 |
|
18.4 |
|
Bank-owned life insurance income |
|
|
2,749 |
|
|
1,981 |
|
|
768 |
|
38.8 |
|
Other income |
|
|
3,690 |
|
|
4,357 |
|
|
(667) |
|
(15.3) |
|
Total noninterest income |
|
|
41,854 |
|
|
57,309 |
|
|
(15,455) |
|
(27.0) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
73,917 |
|
|
83,273 |
|
|
(9,356) |
|
(11.2) |
|
Occupancy and equipment |
|
|
18,773 |
|
|
19,767 |
|
|
(994) |
|
(5.0) |
|
Data processing |
|
|
9,771 |
|
|
9,170 |
|
|
601 |
|
6.6 |
|
Loan expense |
|
|
798 |
|
|
1,387 |
|
|
(589) |
|
(42.5) |
|
Marketing |
|
|
3,711 |
|
|
3,916 |
|
|
(205) |
|
(5.2) |
|
Professional fees |
|
|
5,679 |
|
|
6,122 |
|
|
(443) |
|
(7.2) |
|
Deposit insurance |
|
|
3,485 |
|
|
1,445 |
|
|
2,040 |
|
141.2 |
|
Goodwill impairment |
|
|
10,760 |
|
|
— |
|
|
10,760 |
|
0.0 |
|
Other expenses |
|
|
11,426 |
|
|
13,826 |
|
|
(2,400) |
|
(17.4) |
|
Total noninterest expenses |
|
|
138,320 |
|
|
138,906 |
|
|
(586) |
|
(0.4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
25,125 |
|
|
61,729 |
|
|
(36,604) |
|
(59.3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
|
9,048 |
|
|
16,140 |
|
|
(7,092) |
|
(43.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
16,077 |
|
$ |
45,589 |
|
$ |
(29,512) |
|
(64.7) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.37 |
|
$ |
0.98 |
|
|
|
|
|
|
Diluted |
|
$ |
0.37 |
|
$ |
0.97 |
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
43,221,738 |
|
|
46,483,664 |
|
|
|
|
|
|
Diluted |
|
|
43,419,622 |
|
|
47,118,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HarborOne Bancorp, Inc. Average Balances / Yields (Unaudited) |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended |
|
||||||||||||||||||||||
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
||||||||||||||||||
|
|
Average |
|
|
|
|
|
Average |
|
|
|
|
|
Average |
|
|
|
|
|
||||||
|
|
Outstanding |
|
|
|
Yield/ |
|
Outstanding |
|
|
|
Yield/ |
|
Outstanding |
|
|
|
Yield/ |
|
||||||
|
|
Balance |
|
Interest |
|
Cost (8) |
|
Balance |
|
Interest |
|
Cost (8) |
|
Balance |
|
Interest |
|
Cost (8) |
|
||||||
|
|
(dollars in thousands) |
|
||||||||||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (1) |
|
$ |
370,683 |
|
$ |
2,001 |
|
2.14 |
% |
$ |
375,779 |
|
$ |
2,003 |
|
2.11 |
% |
$ |
388,247 |
|
$ |
2,045 |
|
2.09 |
% |
Other interest-earning assets |
|
|
205,929 |
|
|
2,516 |
|
4.85 |
|
|
207,234 |
|
|
2,667 |
|
5.11 |
|
|
42,640 |
|
|
359 |
|
3.34 |
|
Loans held for sale |
|
|
20,010 |
|
|
369 |
|
7.32 |
|
|
20,919 |
|
|
370 |
|
7.02 |
|
|
22,350 |
|
|
334 |
|
5.93 |
|
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans (2)(3) |
|
|
3,005,840 |
|
|
41,263 |
|
5.45 |
|
|
2,980,817 |
|
|
40,438 |
|
5.38 |
|
|
2,770,667 |
|
|
34,351 |
|
4.92 |
|
Residential real estate loans (3)(4) |
|
|
1,707,978 |
|
|
18,103 |
|
4.21 |
|
|
1,700,383 |
|
|
17,525 |
|
4.09 |
|
|
1,566,389 |
|
|
14,352 |
|
3.64 |
|
Consumer loans (3) |
|
|
22,324 |
|
|
384 |
|
6.82 |
|
|
25,126 |
|
|
412 |
|
6.51 |
|
|
45,629 |
|
|
632 |
|
5.50 |
|
Total loans |
|
|
4,736,142 |
|
|
59,750 |
|
5.01 |
|
|
4,706,326 |
|
|
58,375 |
|
4.92 |
|
|
4,382,685 |
|
|
49,335 |
|
4.47 |
|
Total interest-earning assets |
|
|
5,332,764 |
|
|
64,636 |
|
4.81 |
|
|
5,310,258 |
|
|
63,415 |
|
4.74 |
|
|
4,835,922 |
|
|
52,073 |
|
4.27 |
|
Noninterest-earning assets |
|
|
313,729 |
|
|
|
|
|
|
|
314,030 |
|
|
|
|
|
|
|
311,372 |
|
|
|
|
|
|
Total assets |
|
$ |
5,646,493 |
|
|
|
|
|
|
$ |
5,624,288 |
|
|
|
|
|
|
$ |
5,147,294 |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
$ |
1,307,774 |
|
|
6,875 |
|
2.09 |
|
$ |
1,360,728 |
|
|
6,787 |
|
1.98 |
|
$ |
1,408,493 |
|
|
3,591 |
|
1.01 |
|
NOW accounts |
|
|
290,147 |
|
|
122 |
|
0.17 |
|
|
274,329 |
|
|
75 |
|
0.11 |
|
|
291,890 |
|
|
40 |
|
0.05 |
|
Money market accounts |
|
|
963,223 |
|
|
9,288 |
|
3.83 |
|
|
910,694 |
|
|
8,355 |
|
3.64 |
|
|
878,609 |
|
|
3,312 |
|
1.50 |
|
Certificates of deposit |
|
|
859,274 |
|
|
8,329 |
|
3.85 |
|
|
818,182 |
|
|
7,212 |
|
3.50 |
|
|
487,121 |
|
|
1,062 |
|
0.86 |
|
Brokered deposits |
|
|
288,449 |
|
|
2,696 |
|
3.71 |
|
|
287,428 |
|
|
2,610 |
|
3.60 |
|
|
148,460 |
|
|
494 |
|
1.32 |
|
Total interest-bearing deposits |
|
|
3,708,867 |
|
|
27,310 |
|
2.92 |
|
|
3,651,361 |
|
|
25,039 |
|
2.72 |
|
|
3,214,573 |
|
|
8,499 |
|
1.05 |
|
FHLB and FRB borrowings |
|
|
507,520 |
|
|
6,260 |
|
4.89 |
|
|
508,001 |
|
|
6,439 |
|
5.03 |
|
|
392,508 |
|
|
3,703 |
|
3.74 |
|
Subordinated debentures |
|
|
22,614 |
|
|
1,122 |
|
19.68 |
|
|
34,364 |
|
|
606 |
|
7.00 |
|
|
34,268 |
|
|
524 |
|
6.07 |
|
Total borrowings |
|
|
530,134 |
|
|
7,382 |
|
5.52 |
|
|
542,365 |
|
|
7,045 |
|
5.15 |
|
|
426,776 |
|
|
4,227 |
|
3.93 |
|
Total interest-bearing liabilities |
|
|
4,239,001 |
|
|
34,692 |
|
3.25 |
|
|
4,193,726 |
|
|
32,084 |
|
3.04 |
|
|
3,641,349 |
|
|
12,726 |
|
1.39 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
683,548 |
|
|
|
|
|
|
|
705,009 |
|
|
|
|
|
|
|
788,572 |
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
137,239 |
|
|
|
|
|
|
|
126,742 |
|
|
|
|
|
|
|
101,621 |
|
|
|
|
|
|
Total liabilities |
|
|
5,059,788 |
|
|
|
|
|
|
|
5,025,477 |
|
|
|
|
|
|
|
4,531,542 |
|
|
|
|
|
|
Total stockholders' equity |
|
|
586,705 |
|
|
|
|
|
|
|
598,811 |
|
|
|
|
|
|
|
615,752 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
5,646,493 |
|
|
|
|
|
|
$ |
5,624,288 |
|
|
|
|
|
|
$ |
5,147,294 |
|
|
|
|
|
|
Tax equivalent net interest income |
|
|
|
|
|
29,944 |
|
|
|
|
|
|
|
31,331 |
|
|
|
|
|
|
|
39,347 |
|
|
|
Tax equivalent interest rate spread (5) |
|
|
|
|
|
|
|
1.56 |
% |
|
|
|
|
|
|
1.70 |
% |
|
|
|
|
|
|
2.88 |
% |
Less: tax equivalent adjustment |
|
|
|
|
|
251 |
|
|
|
|
|
|
|
251 |
|
|
|
|
|
|
|
158 |
|
|
|
Net interest income as reported |
|
|
|
|
$ |
29,693 |
|
|
|
|
|
|
$ |
31,080 |
|
|
|
|
|
|
$ |
39,189 |
|
|
|
Net interest-earning assets (6) |
|
$ |
1,093,763 |
|
|
|
|
|
|
$ |
1,116,532 |
|
|
|
|
|
|
$ |
1,194,573 |
|
|
|
|
|
|
Net interest margin (7) |
|
|
|
|
|
|
|
2.21 |
% |
|
|
|
|
|
|
2.32 |
% |
|
|
|
|
|
|
3.22 |
% |
Tax equivalent effect |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
|
|
0.01 |
|
Net interest margin on a fully tax equivalent basis |
|
|
|
|
|
|
|
2.23 |
% |
|
|
|
|
|
|
2.34 |
% |
|
|
|
|
|
|
3.23 |
% |
Ratio of interest-earning assets to interest-bearing liabilities |
|
|
125.80 |
% |
|
|
|
|
|
|
126.62 |
% |
|
|
|
|
|
|
132.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits, including demand deposits |
|
$ |
4,392,415 |
|
$ |
27,310 |
|
|
|
$ |
4,356,370 |
|
$ |
25,039 |
|
|
|
$ |
4,003,145 |
|
$ |
8,499 |
|
|
|
Cost of total deposits |
|
|
|
|
|
|
|
2.47 |
% |
|
|
|
|
|
|
2.28 |
% |
|
|
|
|
|
|
0.84 |
% |
Total funding liabilities, including demand deposits |
|
$ |
4,922,549 |
|
$ |
34,692 |
|
|
|
$ |
4,898,735 |
|
$ |
32,084 |
|
|
|
$ |
4,429,921 |
|
$ |
12,726 |
|
|
|
Cost of total funding liabilities |
|
|
|
|
|
|
|
2.80 |
% |
|
|
|
|
|
|
2.60 |
% |
|
|
|
|
|
|
1.14 |
% |
| (1) | Includes securities available for sale and securities held to maturity. |
| (2) | Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis. |
| (3) | Includes nonaccruing loan balances and interest received on such loans. |
| (4) | Includes the basis adjustments of certain loans included in fair value hedging relationships. |
| (5) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
| (6) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
| (7) | Net interest margin represents net interest income divided by average total interest-earning assets. |
| (8) | Annualized. |
HarborOne Bancorp, Inc. Average Balances / Yields (Unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
||||||||||||||
|
|
December 31, 2023 |
|
December 31, 2022 |
|
||||||||||||
|
|
Average |
|
|
|
|
|
Average |
|
|
|
|
|
||||
|
|
Outstanding |
|
|
|
Yield/ |
|
Outstanding |
|
|
|
Yield/ |
|
||||
|
|
Balance |
|
Interest |
|
Cost (8) |
|
Balance |
|
Interest |
|
Cost (8) |
|
||||
|
|
(dollars in thousands) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (1) |
|
$ |
378,828 |
|
$ |
8,118 |
|
2.14 |
% |
$ |
390,894 |
|
$ |
7,590 |
|
1.94 |
% |
Other interest-earning assets |
|
|
179,338 |
|
|
8,921 |
|
4.97 |
|
|
70,987 |
|
|
694 |
|
0.98 |
|
Loans held for sale |
|
|
19,671 |
|
|
1,351 |
|
6.87 |
|
|
27,409 |
|
|
1,306 |
|
4.76 |
|
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans (2)(3) |
|
|
2,956,956 |
|
|
157,379 |
|
5.32 |
|
|
2,493,646 |
|
|
110,305 |
|
4.42 |
|
Residential real estate loans (3)(4) |
|
|
1,684,793 |
|
|
67,701 |
|
4.02 |
|
|
1,398,190 |
|
|
48,645 |
|
3.48 |
|
Consumer loans (3) |
|
|
28,149 |
|
|
1,734 |
|
6.16 |
|
|
78,766 |
|
|
3,811 |
|
4.84 |
|
Total loans |
|
|
4,669,898 |
|
|
226,814 |
|
4.86 |
|
|
3,970,602 |
|
|
162,761 |
|
4.10 |
|
Total interest-earning assets |
|
|
5,247,735 |
|
|
245,204 |
|
4.67 |
|
|
4,459,892 |
|
|
172,351 |
|
3.86 |
|
Noninterest-earning assets |
|
|
311,558 |
|
|
|
|
|
|
|
314,670 |
|
|
|
|
|
|
Total assets |
|
$ |
5,559,293 |
|
|
|
|
|
|
$ |
4,774,562 |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
$ |
1,386,891 |
|
|
25,271 |
|
1.82 |
|
$ |
1,284,364 |
|
|
5,794 |
|
0.45 |
|
NOW accounts |
|
|
280,218 |
|
|
292 |
|
0.10 |
|
|
302,530 |
|
|
156 |
|
0.05 |
|
Money market accounts |
|
|
875,722 |
|
|
29,138 |
|
3.33 |
|
|
879,133 |
|
|
5,632 |
|
0.64 |
|
Certificates of deposit |
|
|
735,614 |
|
|
23,499 |
|
3.19 |
|
|
495,066 |
|
|
3,248 |
|
0.66 |
|
Brokered deposits |
|
|
296,838 |
|
|
10,124 |
|
3.41 |
|
|
112,939 |
|
|
800 |
|
0.71 |
|
Total interest-bearing deposits |
|
|
3,575,283 |
|
|
88,324 |
|
2.47 |
|
|
3,074,032 |
|
|
15,630 |
|
0.51 |
|
FHLB and FRB borrowings |
|
|
532,586 |
|
|
25,918 |
|
4.87 |
|
|
170,748 |
|
|
5,219 |
|
3.06 |
|
Subordinated debentures |
|
|
31,378 |
|
|
2,775 |
|
8.84 |
|
|
34,221 |
|
|
2,095 |
|
6.12 |
|
Total borrowings |
|
|
563,964 |
|
|
28,693 |
|
5.09 |
|
|
204,969 |
|
|
7,314 |
|
3.57 |
|
Total interest-bearing liabilities |
|
|
4,139,247 |
|
|
117,017 |
|
2.83 |
|
|
3,279,001 |
|
|
22,944 |
|
0.70 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
705,438 |
|
|
|
|
|
|
|
771,299 |
|
|
|
|
|
|
Other noninterest-bearing liabilities |
|
|
113,675 |
|
|
|
|
|
|
|
85,995 |
|
|
|
|
|
|
Total liabilities |
|
|
4,958,360 |
|
|
|
|
|
|
|
4,136,295 |
|
|
|
|
|
|
Total stockholders' equity |
|
|
600,933 |
|
|
|
|
|
|
|
638,267 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
5,559,293 |
|
|
|
|
|
|
$ |
4,774,562 |
|
|
|
|
|
|
Tax equivalent net interest income |
|
|
|
|
|
128,187 |
|
|
|
|
|
|
|
149,407 |
|
|
|
Tax equivalent interest rate spread (5) |
|
|
|
|
|
|
|
1.84 |
% |
|
|
|
|
|
|
3.16 |
% |
Less: tax equivalent adjustment |
|
|
|
|
|
916 |
|
|
|
|
|
|
|
421 |
|
|
|
Net interest income as reported |
|
|
|
|
$ |
127,271 |
|
|
|
|
|
|
$ |
148,986 |
|
|
|
Net interest-earning assets (6) |
|
$ |
1,108,488 |
|
|
|
|
|
|
$ |
1,180,891 |
|
|
|
|
|
|
Net interest margin (7) |
|
|
|
|
|
|
|
2.43 |
% |
|
|
|
|
|
|
3.34 |
% |
Tax equivalent effect |
|
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
|
0.01 |
|
Net interest margin on a fully tax equivalent basis |
|
|
|
|
|
|
|
2.44 |
% |
|
|
|
|
|
|
3.35 |
% |
Ratio of interest-earning assets to interest-bearing liabilities |
|
|
126.78 |
% |
|
|
|
|
|
|
136.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits, including demand deposits |
|
$ |
4,280,721 |
|
$ |
88,324 |
|
|
|
$ |
3,845,331 |
|
$ |
15,630 |
|
|
|
Cost of total deposits |
|
|
|
|
|
|
|
2.06 |
% |
|
|
|
|
|
|
0.41 |
% |
Total funding liabilities, including demand deposits |
|
$ |
4,844,685 |
|
$ |
117,017 |
|
|
|
$ |
4,050,300 |
|
$ |
22,944 |
|
|
|
Cost of total funding liabilities |
|
|
|
|
|
|
|
2.42 |
% |
|
|
|
|
|
|
0.57 |
% |
(1) |
Includes securities available for sale and securities held to maturity. |
(2) |
Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis. |
(3) |
Includes nonaccruing loan balances and interest received on such loans. |
(4) |
Includes the basis adjustments of certain loans included in fair value hedging relationships. |
(5) |
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
(6) |
Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
(7) |
Net interest margin represents net interest income divided by average total interest-earning assets. |
HarborOne Bancorp, Inc. Average Balances and Yield Trend (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances - Trend - Quarters Ended |
||||||||||||||
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|||||
|
|
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||||
|
|
(in thousands) |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (1) |
|
$ |
370,683 |
|
$ |
375,779 |
|
$ |
381,762 |
|
$ |
387,303 |
|
$ |
388,247 |
|
Other interest-earning assets |
|
|
205,929 |
|
|
207,234 |
|
|
238,891 |
|
|
63,426 |
|
|
42,640 |
|
Loans held for sale |
|
|
20,010 |
|
|
20,919 |
|
|
19,614 |
|
|
18,108 |
|
|
22,350 |
|
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans (2)(3) |
|
|
3,005,840 |
|
|
2,980,817 |
|
|
2,938,292 |
|
|
2,901,464 |
|
|
2,770,667 |
|
Residential real estate loans (3)(4) |
|
|
1,707,978 |
|
|
1,700,383 |
|
|
1,682,860 |
|
|
1,647,109 |
|
|
1,566,389 |
|
Consumer loans (3) |
|
|
22,324 |
|
|
25,126 |
|
|
29,025 |
|
|
36,310 |
|
|
45,629 |
|
Total loans |
|
|
4,736,142 |
|
|
4,706,326 |
|
|
4,650,177 |
|
|
4,584,883 |
|
|
4,382,685 |
|
Total interest-earning assets |
|
|
5,332,764 |
|
|
5,310,258 |
|
|
5,290,444 |
|
|
5,053,720 |
|
|
4,835,922 |
|
Noninterest-earning assets |
|
|
313,729 |
|
|
314,030 |
|
|
305,132 |
|
|
313,309 |
|
|
311,372 |
|
Total assets |
|
$ |
5,646,493 |
|
$ |
5,624,288 |
|
$ |
5,595,576 |
|
$ |
5,367,029 |
|
$ |
5,147,294 |
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
$ |
1,307,774 |
|
$ |
1,360,728 |
|
$ |
1,421,622 |
|
$ |
1,459,392 |
|
$ |
1,408,493 |
|
NOW accounts |
|
|
290,147 |
|
|
274,329 |
|
|
280,501 |
|
|
275,801 |
|
|
291,890 |
|
Money market accounts |
|
|
963,223 |
|
|
910,694 |
|
|
802,373 |
|
|
824,694 |
|
|
878,609 |
|
Certificates of deposit |
|
|
859,274 |
|
|
818,182 |
|
|
708,087 |
|
|
552,636 |
|
|
487,121 |
|
Brokered deposits |
|
|
288,449 |
|
|
287,428 |
|
|
281,614 |
|
|
330,426 |
|
|
148,460 |
|
Total interest-bearing deposits |
|
|
3,708,867 |
|
|
3,651,361 |
|
|
3,494,197 |
|
|
3,442,949 |
|
|
3,214,573 |
|
FHLB and FRB borrowings |
|
|
507,520 |
|
|
508,001 |
|
|
666,345 |
|
|
448,096 |
|
|
392,508 |
|
Subordinated debentures |
|
|
22,614 |
|
|
34,364 |
|
|
34,331 |
|
|
34,298 |
|
|
34,268 |
|
Total borrowings |
|
|
530,134 |
|
|
542,365 |
|
|
700,676 |
|
|
482,394 |
|
|
426,776 |
|
Total interest-bearing liabilities |
|
|
4,239,001 |
|
|
4,193,726 |
|
|
4,194,873 |
|
|
3,925,343 |
|
|
3,641,349 |
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
683,548 |
|
|
705,009 |
|
|
712,081 |
|
|
721,536 |
|
|
788,572 |
|
Other noninterest-bearing liabilities |
|
|
137,239 |
|
|
126,742 |
|
|
88,363 |
|
|
101,820 |
|
|
101,621 |
|
Total liabilities |
|
|
5,059,788 |
|
|
5,025,477 |
|
|
4,995,317 |
|
|
4,748,699 |
|
|
4,531,542 |
|
Total stockholders' equity |
|
|
586,705 |
|
|
598,811 |
|
|
600,259 |
|
|
618,330 |
|
|
615,752 |
|
Total liabilities and stockholders' equity |
|
$ |
5,646,493 |
|
$ |
5,624,288 |
|
$ |
5,595,576 |
|
$ |
5,367,029 |
|
$ |
5,147,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Yield Trend - Quarters Ended |
|
||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||
|
|
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities (1) |
|
|
2.14 |
% |
|
2.11 |
% |
|
2.14 |
% |
|
2.18 |
% |
|
2.09 |
% |
Other interest-earning assets |
|
|
4.85 |
% |
|
5.11 |
% |
|
4.93 |
% |
|
5.13 |
% |
|
3.34 |
% |
Loans held for sale |
|
|
7.32 |
% |
|
7.02 |
% |
|
6.67 |
% |
|
6.41 |
% |
|
5.93 |
% |
Commercial loans (2)(3) |
|
|
5.45 |
% |
|
5.38 |
% |
|
5.30 |
% |
|
5.15 |
% |
|
4.92 |
% |
Residential real estate loans (3)(4) |
|
|
4.21 |
% |
|
4.09 |
% |
|
3.92 |
% |
|
3.85 |
% |
|
3.64 |
% |
Consumer loans (3) |
|
|
6.82 |
% |
|
6.51 |
% |
|
5.79 |
% |
|
5.80 |
% |
|
5.50 |
% |
Total loans |
|
|
5.01 |
% |
|
4.92 |
% |
|
4.81 |
% |
|
4.69 |
% |
|
4.47 |
% |
Total interest-earning assets |
|
|
4.81 |
% |
|
4.74 |
% |
|
4.63 |
% |
|
4.51 |
% |
|
4.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts |
|
|
2.09 |
% |
|
1.98 |
% |
|
1.74 |
% |
|
1.51 |
% |
|
1.01 |
% |
NOW accounts |
|
|
0.17 |
% |
|
0.11 |
% |
|
0.08 |
% |
|
0.05 |
% |
|
0.05 |
% |
Money market accounts |
|
|
3.83 |
% |
|
3.64 |
% |
|
3.13 |
% |
|
2.58 |
% |
|
1.50 |
% |
Certificates of deposit |
|
|
3.85 |
% |
|
3.50 |
% |
|
2.99 |
% |
|
1.97 |
% |
|
0.86 |
% |
Brokered deposits |
|
|
3.71 |
% |
|
3.60 |
% |
|
3.29 |
% |
|
3.08 |
% |
|
1.32 |
% |
Total interest-bearing deposits |
|
|
2.92 |
% |
|
2.72 |
% |
|
2.30 |
% |
|
1.87 |
% |
|
1.05 |
% |
FHLB and FRB borrowings |
|
|
4.89 |
% |
|
5.03 |
% |
|
4.88 |
% |
|
4.62 |
% |
|
3.74 |
% |
Subordinated debentures |
|
|
19.68 |
% |
|
7.00 |
% |
|
6.12 |
% |
|
6.18 |
% |
|
6.07 |
% |
Total borrowings |
|
|
5.52 |
% |
|
5.15 |
% |
|
4.94 |
% |
|
4.73 |
% |
|
3.93 |
% |
Total interest-bearing liabilities |
|
|
3.25 |
% |
|
3.04 |
% |
|
2.74 |
% |
|
2.23 |
% |
|
1.39 |
% |
(1) |
Includes securities available for sale and securities held to maturity. |
(2) |
Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis. |
(3) |
Includes nonaccruing loan balances and interest received on such loans. |
(4) |
Includes the basis adjustments of certain loans included in fair value hedging relationships. |
HarborOne Bancorp, Inc. Selected Financial Highlights (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended |
|
|||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|||||
Performance Ratios (annualized): |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(7,111) |
|
$ |
8,411 |
|
$ |
7,450 |
|
$ |
7,297 |
|
$ |
9,577 |
|
Less: Goodwill impairment charge |
|
|
10,760 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Net income, excluding goodwill impairment charge |
|
$ |
3,649 |
|
$ |
8,411 |
|
$ |
7,450 |
|
$ |
7,297 |
|
$ |
9,577 |
|
Average Assets |
|
$ |
5,646,493 |
|
$ |
5,624,288 |
|
$ |
5,595,576 |
|
$ |
5,367,029 |
|
$ |
5,147,294 |
|
Average Equity |
|
$ |
586,705 |
|
$ |
598,811 |
|
$ |
600,258 |
|
$ |
618,330 |
|
$ |
615,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROAA) |
|
|
(0.50) |
% |
|
0.60 |
% |
|
0.54 |
% |
|
0.54 |
% |
|
0.74 |
% |
Return on average assets (ROAA), excluding goodwill impairment charge(1) |
|
|
0.26 |
% |
|
0.60 |
% |
|
0.54 |
% |
|
0.54 |
% |
|
0.74 |
% |
Return on average equity (ROAE) |
|
|
(4.85) |
% |
|
5.62 |
% |
|
4.98 |
% |
|
4.72 |
% |
|
6.22 |
% |
Return on average equity (ROAE), excluding goodwill impairment charge(2) |
|
|
2.49 |
% |
|
5.62 |
% |
|
4.98 |
% |
|
4.72 |
% |
|
6.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
43,214 |
|
$ |
31,872 |
|
$ |
31,725 |
|
$ |
31,509 |
|
$ |
34,644 |
|
Less: Amortization of other intangible assets |
|
|
189 |
|
|
189 |
|
|
189 |
|
|
189 |
|
|
189 |
|
Total adjusted noninterest expense |
|
|
43,025 |
|
|
31,683 |
|
|
31,536 |
|
|
31,320 |
|
|
34,455 |
|
Less: Goodwill impairment charge |
|
|
10,760 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total adjusted noninterest expense, excluding goodwill impairment |
|
$ |
32,265 |
|
$ |
31,683 |
|
$ |
31,536 |
|
$ |
31,320 |
|
$ |
34,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income |
|
$ |
29,693 |
|
$ |
31,080 |
|
$ |
32,100 |
|
$ |
34,398 |
|
$ |
39,189 |
|
Total noninterest income |
|
|
8,904 |
|
|
11,598 |
|
|
12,662 |
|
|
8,690 |
|
|
9,900 |
|
Total revenue |
|
$ |
38,597 |
|
$ |
42,678 |
|
$ |
44,762 |
|
$ |
43,088 |
|
$ |
49,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (3) |
|
|
111.47 |
% |
|
74.24 |
% |
|
70.45 |
% |
|
72.69 |
% |
|
70.19 |
% |
Efficiency ratio, excluding goodwill impairment charge(4) |
|
|
83.59 |
% |
|
74.24 |
% |
|
70.45 |
% |
|
72.69 |
% |
|
70.19 |
% |
(1) |
This non-GAAP measure represents net income, excluding goodwill impairment charge to average assets |
(2) |
This non-GAAP measure represents net income, excluding goodwill impairment charge to average equity |
(3) |
This non-GAAP measure represents adjusted noninterest expense divided by total revenue |
(4) |
This non-GAAP measure represents adjusted noninterest expense, excluding goodwill impairment divided by total revenue |
|
At or for the Quarters Ended |
|
||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|||||
Asset Quality |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
17,582 |
|
$ |
18,795 |
|
$ |
20,234 |
|
$ |
12,300 |
|
$ |
14,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
|
0.31 |
% |
|
0.33 |
% |
|
0.36 |
% |
|
0.22 |
% |
|
0.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to total loans |
|
|
1.01 |
% |
|
1.02 |
% |
|
1.02 |
% |
|
1.02 |
% |
|
0.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) |
|
$ |
1,311 |
|
$ |
(18) |
|
$ |
2,671 |
|
$ |
(11) |
|
$ |
2,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries)/average loans |
|
|
0.11 |
% |
|
— |
% |
|
0.23 |
% |
|
— |
% |
|
0.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to nonperforming loans |
|
|
273.92 |
% |
|
257.21 |
% |
|
236.62 |
% |
|
383.50 |
% |
|
305.93 |
% |
HarborOne Bancorp, Inc. Selected Financial Highlights (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended |
|
||||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|||||
Capital and Share Related |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|||||
(dollars in thousands, except share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock outstanding |
|
|
45,401,224 |
|
|
45,915,364 |
|
|
46,575,478 |
|
|
47,063,087 |
|
|
48,961,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
12.86 |
|
$ |
12.73 |
|
$ |
12.79 |
|
$ |
12.74 |
|
$ |
12.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
583,759 |
|
$ |
584,634 |
|
$ |
595,532 |
|
$ |
599,794 |
|
$ |
616,976 |
|
Less: Goodwill |
|
|
59,042 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
Less: Other intangible assets (1) |
|
|
1,515 |
|
|
1,704 |
|
|
1,893 |
|
|
2,082 |
|
|
2,272 |
|
Tangible common equity |
|
$ |
523,202 |
|
$ |
513,128 |
|
$ |
523,837 |
|
$ |
527,910 |
|
$ |
544,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share (2) |
|
$ |
11.52 |
|
$ |
11.18 |
|
$ |
11.25 |
|
$ |
11.22 |
|
$ |
11.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,667,896 |
|
$ |
5,664,387 |
|
$ |
5,659,254 |
|
$ |
5,572,858 |
|
$ |
5,359,545 |
|
Less: Goodwill |
|
|
59,042 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
|
69,802 |
|
Less: Other intangible assets |
|
|
1,515 |
|
|
1,704 |
|
|
1,893 |
|
|
2,082 |
|
|
2,272 |
|
Tangible assets |
|
$ |
5,607,339 |
|
$ |
5,592,881 |
|
$ |
5,587,559 |
|
$ |
5,500,974 |
|
$ |
5,287,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity / tangible assets (3) |
|
|
9.33 |
% |
|
9.17 |
% |
|
9.38 |
% |
|
9.60 |
% |
|
10.31 |
% |
(1) |
Other intangible assets are core deposit intangibles. |
(2) |
This non-GAAP ratio is total stockholders' equity less goodwill and intangible assets divided by common stock outstanding. |
(3) |
This non-GAAP ratio is total stockholders' equity less goodwill and intangible assets to total assets less goodwill and intangible assets. |
HarborOne Bancorp, Inc. Segments Key Financial Data (Unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended |
|
|
|||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|||||
Statements of Net Income for HarborOne Bank Segment: |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|
|||||
|
|
(Dollars in thousands) |
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income |
|
$ |
30,637 |
|
$ |
31,468 |
|
$ |
32,490 |
|
$ |
34,562 |
|
$ |
39,258 |
|
|
Provision (benefit) for credit losses |
|
|
644 |
|
|
(113) |
|
|
3,283 |
|
|
1,866 |
|
|
2,108 |
|
|
Net interest and dividend income, after provision for credit losses |
|
|
29,993 |
|
|
31,581 |
|
|
29,207 |
|
|
32,696 |
|
|
37,150 |
|
|
Mortgage banking income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment loss |
|
|
(159) |
|
|
(198) |
|
|
(358) |
|
|
(348) |
|
|
(997) |
|
|
Changes in mortgage servicing rights fair value |
|
|
(257) |
|
|
18 |
|
|
29 |
|
|
(136) |
|
|
(263) |
|
|
Other |
|
|
185 |
|
|
188 |
|
|
195 |
|
|
201 |
|
|
203 |
|
|
Total mortgage banking (loss) income |
|
|
(231) |
|
|
8 |
|
|
(134) |
|
|
(283) |
|
|
(1,057) |
|
|
Other noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit account fees |
|
|
5,178 |
|
|
5,132 |
|
|
5,013 |
|
|
4,733 |
|
|
5,031 |
|
|
Income on retirement plan annuities |
|
|
147 |
|
|
146 |
|
|
128 |
|
|
119 |
|
|
118 |
|
|
Bank-owned life insurance income |
|
|
1,207 |
|
|
531 |
|
|
511 |
|
|
500 |
|
|
501 |
|
|
Other income |
|
|
1,405 |
|
|
694 |
|
|
962 |
|
|
590 |
|
|
2,129 |
|
|
Total noninterest income |
|
|
7,706 |
|
|
6,511 |
|
|
6,480 |
|
|
5,659 |
|
|
6,722 |
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
16,535 |
|
|
15,238 |
|
|
15,067 |
|
|
14,764 |
|
|
16,531 |
|
|
Occupancy and equipment |
|
|
4,038 |
|
|
3,828 |
|
|
3,910 |
|
|
4,295 |
|
|
4,236 |
|
|
Data processing |
|
|
2,462 |
|
|
2,527 |
|
|
2,355 |
|
|
2,305 |
|
|
2,285 |
|
|
Loan expense |
|
|
153 |
|
|
128 |
|
|
96 |
|
|
87 |
|
|
55 |
|
|
Marketing |
|
|
751 |
|
|
709 |
|
|
787 |
|
|
1,063 |
|
|
747 |
|
|
Professional fees |
|
|
1,404 |
|
|
914 |
|
|
699 |
|
|
996 |
|
|
1,027 |
|
|
Deposit insurance |
|
|
794 |
|
|
1,004 |
|
|
1,176 |
|
|
510 |
|
|
385 |
|
|
Other expenses |
|
|
2,476 |
|
|
1,924 |
|
|
2,103 |
|
|
2,170 |
|
|
3,478 |
|
|
Total noninterest expenses |
|
|
28,613 |
|
|
26,272 |
|
|
26,193 |
|
|
26,190 |
|
|
28,744 |
|
|
Less: Amortization of other intangible assets |
|
|
189 |
|
|
190 |
|
|
189 |
|
|
189 |
|
|
189 |
|
|
Total adjusted noninterest expense |
|
|
28,424 |
|
|
26,082 |
|
|
26,004 |
|
|
26,001 |
|
|
28,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
9,086 |
|
|
11,820 |
|
|
9,494 |
|
|
12,165 |
|
|
15,128 |
|
|
Provision for income taxes |
|
|
2,535 |
|
|
2,716 |
|
|
2,193 |
|
|
3,115 |
|
|
2,817 |
|
|
Net income |
|
$ |
6,551 |
|
$ |
9,104 |
|
$ |
7,301 |
|
$ |
9,050 |
|
$ |
12,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (1) - QTD |
|
|
74.13 |
% |
|
68.67 |
% |
|
66.73 |
% |
|
64.65 |
% |
|
62.10 |
% |
|
Efficiency ratio (1) - YTD |
|
|
68.49 |
% |
|
66.64 |
% |
|
65.67 |
% |
|
64.65 |
% |
|
64.25 |
% |
|
(1) |
This non-GAAP measure represents adjusted noninterest expense divided by total revenue |
HarborOne Bancorp, Inc. Segments Key Financial Data (Unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended |
|
|
|||||||||||||
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|||||
Statements of Net Income for HarborOne Mortgage Segment: |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|
|||||
|
|
(Dollars in thousands) |
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest and dividend income |
|
$ |
160 |
|
$ |
199 |
|
$ |
120 |
|
$ |
327 |
|
$ |
419 |
|
|
Mortgage banking income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of mortgage loans |
|
|
2,176 |
|
|
2,704 |
|
|
3,300 |
|
|
2,224 |
|
|
2,301 |
|
|
Intersegment gain |
|
|
56 |
|
|
249 |
|
|
90 |
|
|
454 |
|
|
553 |
|
|
Changes in mortgage servicing rights fair value |
|
|
(3,296) |
|
|
107 |
|
|
407 |
|
|
(1,556) |
|
|
(2,368) |
|
|
Other |
|
|
2,116 |
|
|
2,082 |
|
|
2,117 |
|
|
2,015 |
|
|
2,122 |
|
|
Total mortgage banking income |
|
|
1,052 |
|
|
5,142 |
|
|
5,914 |
|
|
3,137 |
|
|
2,608 |
|
|
Other noninterest income (loss) |
|
|
2 |
|
|
(4) |
|
|
— |
|
|
— |
|
|
126 |
|
|
Total noninterest income |
|
|
1,054 |
|
|
5,138 |
|
|
5,914 |
|
|
3,137 |
|
|
2,734 |
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
3,217 |
|
|
4,014 |
|
|
3,700 |
|
|
3,575 |
|
|
3,825 |
|
|
Occupancy and equipment |
|
|
596 |
|
|
567 |
|
|
688 |
|
|
701 |
|
|
663 |
|
|
Data processing |
|
|
13 |
|
|
21 |
|
|
48 |
|
|
41 |
|
|
74 |
|
|
Loan expense |
|
|
(470) |
|
|
258 |
|
|
321 |
|
|
226 |
|
|
114 |
|
|
Marketing |
|
|
60 |
|
|
85 |
|
|
138 |
|
|
118 |
|
|
115 |
|
|
Professional fees |
|
|
120 |
|
|
155 |
|
|
180 |
|
|
257 |
|
|
115 |
|
|
Goodwill impairment |
|
|
10,760 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Other expenses |
|
|
371 |
|
|
390 |
|
|
418 |
|
|
404 |
|
|
546 |
|
|
Total noninterest expenses |
|
|
14,667 |
|
|
5,490 |
|
|
5,493 |
|
|
5,322 |
|
|
5,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes |
|
|
(13,453) |
|
|
(153) |
|
|
541 |
|
|
(1,858) |
|
|
(2,299) |
|
|
Income tax (benefit) provision |
|
|
(596) |
|
|
(15) |
|
|
232 |
|
|
(565) |
|
|
— |
|
|
Net (loss) income |
|
$ |
(12,857) |
|
$ |
(138) |
|
$ |
309 |
|
$ |
(1,293) |
|
$ |
(2,299) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (1) - QTD |
|
|
1,208.15 |
% |
|
102.87 |
% |
|
91.03 |
% |
|
153.64 |
% |
|
172.91 |
% |
|
Efficiency ratio, excluding goodwill impairment (2) - QTD |
|
|
321.83 |
% |
|
102.87 |
% |
|
91.03 |
% |
|
153.64 |
% |
|
172.91 |
% |
|
Efficiency ratio (1) - YTD |
|
|
192.98 |
% |
|
109.91 |
% |
|
113.87 |
% |
|
153.64 |
% |
|
77.92 |
% |
|
Efficiency ratio, excluding goodwill impairment (2) - YTD |
|
|
125.94 |
% |
|
109.91 |
% |
|
113.87 |
% |
|
153.64 |
% |
|
77.92 |
% |
|
(1) |
This non-GAAP measure represents noninterest expense divided by total revenue |
(2) |
This non-GAAP measure represents noninterest expense, excluding goodwill impairment divided by total revenue |
Category: Earnings Release
View source version on businesswire.com: https://www.businesswire.com/news/home/20240129251452/en/
Joseph F. Casey, President and Chief Executive Officer
(508) 895-1312
jcasey@harborone.com
Source: HarborOne Bancorp, Inc.
FAQ
What is the net income reported by HarborOne Bancorp, Inc. for the year ended December 31, 2023?
What was the impact of the full impairment of goodwill at Harbor One Mortgage, LLC?
What were the selected financial highlights of HarborOne Bancorp, Inc. for the year ended December 31, 2023?
What were the negative aspects of HarborOne Bancorp, Inc.'s financial performance in 2023?
