HarborOne Bancorp, Inc. Announces 2024 Second Quarter Results

Rhea-AI Summary

HarborOne Bancorp (NASDAQ: HONE) reported net income of $7.3 million, or $0.18 per diluted share, for Q2 2024. Key highlights include:

- Loan growth of $62.5 million (5.2% annualized)
- Client deposit growth of $66.9 million (6.7% annualized)
- Improved net interest margin to 2.31% from 2.25%
- Commenced new share repurchase program for approximately 5% of outstanding shares
- $1.8 million gain on sale of former headquarters, partially offset by $1.0 million loss on sale of low-yielding securities

The company saw improved asset quality, with nonperforming loans at 0.20% of total loans, down from 0.25% last quarter. Total assets decreased 1.3% to $5.79 billion, while loans increased 1.3% to $4.84 billion.

Positive

• Loan growth of $62.5 million (5.2% annualized)
• Client deposit growth of $66.9 million (6.7% annualized)
• Net interest margin improvement to 2.31% from 2.25%
• Improved asset quality with nonperforming loans decreasing to 0.20% of total loans
• $1.8 million gain on sale of former Bank headquarters
• 19% annualized revenue growth

Negative

• Slight decrease in net income compared to same period last year ($7.3 million vs $7.5 million)
• Total assets decreased by $75.2 million (1.3%) to $5.79 billion
• $1.0 million loss on sale of low-yielding securities
• Increase in noninterest expense by $1.3 million (4.4%) compared to previous quarter

Insights

Financial Analyst

HarborOne Bancorp's Q2 2024 results present a mixed picture with some positive developments and areas of concern. The net income of $7.3 million ($0.18 per diluted share) remained flat compared to the previous quarter but showed a slight improvement in EPS. This stability in earnings amid challenging market conditions is noteworthy.

Key positives include:

• Loan growth of $62.5 million (5.2% annualized)
• Client deposit growth of $66.9 million (6.7% annualized)
• Improved asset quality with nonperforming loans decreasing to 0.20% of total loans
• Net interest margin improvement to 2.31% from 2.25%

However, there are some concerns:

• The 1.02% allowance for credit losses (ACL) on loans, while stable, may need monitoring given potential commercial real estate market pressures
• The increase in 'watch' rated commercial loans to $87.7 million from $67.9 million in the previous quarter
• Continued pressure on deposit mix and rates due to the competitive rate environment

The $1.8 million gain from the sale-leaseback of the former headquarters partially offset by a $1.0 million loss on securities sale demonstrates management's efforts to optimize assets and improve yields. The commencement of a new share repurchase program signals confidence in the company's financial position.

Overall, while HarborOne shows resilience in a challenging environment, investors should closely monitor the commercial loan portfolio and deposit costs in the coming quarters.

Market Research Analyst

HarborOne Bancorp's Q2 2024 results reflect the broader trends in the banking sector, particularly for regional banks. The 19% annualized revenue growth is impressive, especially considering the challenging interest rate environment.

The improvement in net interest margin to 2.31% is a positive sign, but it's still below the 2.45% from the same quarter last year. This compression is a common theme across the banking industry as competition for deposits intensifies.

The mortgage banking segment shows signs of recovery, with gain on loan sales increasing to $3.1 million from $2.0 million in the previous quarter. However, this is still below the $3.3 million from Q2 2023, indicating ongoing challenges in the housing market.

The increase in 'watch' rated commercial loans to $87.7 million is concerning and aligns with industry-wide worries about commercial real estate. Particular attention should be paid to the $119.7 million in business-oriented hotel loans, $48.6 million in non-anchored retail space loans and $6.2 million in metro office space loans, given the ongoing shifts in work and travel patterns post-pandemic.

The bank's strong capital position and liquidity ($1.16 billion in available borrowing capacity) provide a buffer against potential economic headwinds. However, the pressure on deposit mix and rates is likely to continue as the Federal Reserve maintains higher interest rates.

In conclusion, HarborOne's performance is solid given the market conditions, but it faces similar challenges to its peers in navigating the current economic landscape.

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 $7.3 million, or $0.18 per diluted share, for the second quarter of 2024, compared to a net income of $7.3 million, or $0.17 per diluted share for the preceding quarter, and net income of $7.5 million, or $0.17 per diluted share for the same period last year. Net income for the six months ended June 30, 2024 was $14.6 million, or $0.35 per diluted share, compared to $14.8 million, or $0.33 per diluted share for the same period in 2023.

Selected Financial Highlights:

• Loan growth of $62.5 million, or 5.2% annualized; client deposit growth of $66.9 million, or 6.7% annualized.
• Improved asset quality; nonperforming loans as a percentage of total loans were 0.20% compared to 0.25% last quarter.
• Net interest margin improvement to 2.31% from 2.25% on a linked-quarter basis.
• Commenced new share repurchase program to repurchase approximately 5% of outstanding shares over the next year.
• $1.8 million gain on sale of former Bank headquarters, partially offset by a $1.0 million loss on sale of low-yielding securities.

“I am pleased with our team’s execution this quarter, producing 19% annualized revenue growth, and improved net interest margin, through balanced loan and deposit growth,” said Joseph F. Casey, President and CEO. “Additionally, we improved our already solid asset quality.”

Net Interest Income
Net interest and dividend income was $31.4 million for the quarter ended June 30, 2024, compared to $30.6 million for the quarter ended March 31, 2024, and $32.1 million for the quarter ended June 30, 2023. The tax equivalent interest rate spread and net interest margin were 1.66% and 2.31%, respectively, for the quarter ended June 30, 2024, compared to 1.62% and 2.25%, respectively, for the quarter ended March 31, 2024, and 1.89% and 2.45%, respectively, for the quarter ended June 30, 2023.

On a linked-quarter basis, the increase in the net interest margin, interest rate spread and net interest and dividend income reflects average interest-earning assets increasing $1.6 million and the yield on interest-earning assets increasing 7 basis points, while average interest-bearing liabilities decreased $10.9 million and the cost of those liabilities increased 3 basis points. The cost of interest-bearing deposits, excluding brokered deposits, increased 10 basis points, primarily due to certificate of deposit rollovers at higher rates. Average checking account balances increased $25.7 million on a linked-quarter basis.

The $750,000 decrease in net interest and dividend income from the prior year quarter reflects an increase of $7.9 million, or 27.5%, in total interest expense, partially offset by an increase of $7.2 million, or 11.8%, in total interest and dividend income. The total cost of funding liabilities increased 53 basis points, while the average balance increased $199.2 million, and the yield on interest-earning assets increased 35 basis points, while the average balance increased $216.7 million.

Noninterest Income
Total noninterest income improved $1.2 million, or 11.0%, to $11.9 million for the quarter ended June 30, 2024, from $10.7 million for the quarter ended March 31, 2024. HarborOne Mortgage, LLC (“HarborOne Mortgage”) capitalized on the seasonal increase in residential real estate sales, with gain on loan sales of $3.1 million from mortgage closings of $173.0 million for the quarter ended June 30, 2024, compared to $2.0 million from mortgage loan closings of $102.1 million on a linked-quarter basis. Mortgage loan closings for the quarter ended June 30, 2023 were $172.2 million with a gain on loan sales of $3.3 million. The rate-locked pipeline is up $29.0 million on a linked-quarter basis and up $11.5 million compared to June 30, 2023.

The mortgage servicing rights (“MSR”) valuation declined $273,000 for the three months ended June 30, 2024, compared to an increase of $628,000 in the MSR valuation for the three months ended March 31, 2024. Although key benchmark interest rates used in the valuation model increased slightly from the prior quarter, the MSR valuation was negative as a result of model assumption caps. The impact on the MSR valuation of principal payments on the underlying mortgages was $545,000 and $353,000 for the quarters ended June 30, 2024 and March 31, 2024, respectively. During the first quarter of 2024, HarborOne Mortgage executed an economic hedge to partially mitigate potential MSR valuation losses in a declining rate environment. For the three months ended June 30, 2024 and March 31, 2024, the hedging loss was $280,000 and $221,000, respectively.

Total noninterest income for the quarter ended June 30, 2024 included a $1.8 million gain on the sale-leaseback of the building that currently houses HarborOne’s Legion Parkway banking center in downtown Brockton and previously served as the Bank’s headquarters. The sale-leaseback continues the Company’s longtime commitment to Brockton, which was made in conjunction with a partnership to revitalize the downtown area, with plans for a mixed-use property that includes a lease-back by the Company for a state-of-the-art HarborOne banking center. The gain was partially offset by $675,000 in contribution expense from the bargain purchase element of the property sale and a $1.0 million loss on the sale of $17.5 million of available-for-sale securities with a weighted average book yield of 2.84%, as we take opportunities to improve the yield on earning assets. Management utilized the proceeds upon settlement to pay down wholesale funding carrying a rate of approximately 5.53%.

Total noninterest income decreased $743,000, or 5.9%, compared to the quarter ended June 30, 2023, primarily due to a $1.6 million, or 27.2%, decrease in mortgage banking income, partially offset by the gain noted above. The prior year quarter also reflected a $915,000 million increase in the MSR valuation.

Noninterest Expense
Total noninterest expense increased $1.3 million, or 4.4%, to $33.1 million for the quarter ended June 30, 2024, from $31.8 million for the quarter ended March 31, 2024. The primary driver was a $1.3 million increase in compensation and benefits expenses due to both an increase in mortgage bankers during the quarter, and an increase in mortgage originator’s commission consistent with the increase in residential real estate mortgage origination volume. Additionally, marketing expense increased $552,000, primarily due to the $675,000 contribution expense noted above.

Total noninterest expense increased $1.4 million, or 4.5%, compared to the prior year quarter of $31.7 million. The primary driver was a $756,000 increase in compensation and benefits expenses due to accruals for incentive expense in the current period and none in the prior year period.

Asset Quality and Allowance for Credit Losses
Total nonperforming assets were $9.8 million at June 30, 2024, compared to $12.2 million at March 31, 2024 and $20.2 million at June 30, 2023. Nonperforming assets as a percentage of total assets were 0.17% at June 30, 2024, 0.21% at March 31, 2024, and 0.36% at June 30, 2023. During the second quarter of 2024, a single nonperforming credit, included in the business-oriented hotel loan segment, with a carrying value of $1.8 million, was paid-off.

The Company recorded a $615,000 provision for credit losses for the quarter ended June 30, 2024. The provision for loan credit losses was $1.1 million, partially offset by a negative provision of $534,000 for unfunded commitments. For the quarter ended March 31, 2024, a negative provision for credit losses of $168,000 was recorded, a result of $506,000 negative provision for unfunded commitments partially offset by a provision for loan credit losses of $338,000. The Company recorded a provision for credit losses of $3.3 million for the quarter ended June 30, 2023, driven by a provision for loan credit losses of $3.5 million and a negative $215,000 provision for unfunded commitments. Loan credit loss provisioning primarily reflects replenishment of the allowance for credit losses (“ACL”) on loans due to charge-offs and loan growth. The June 30, 2024 ACL estimate also includes annually updated model assumptions.

Net charge-offs totaled $195,000, or 0.02%, of average loans outstanding on an annualized basis, for the quarter ended June 30, 2024, $125,000, or 0.01% of average loans outstanding on an annualized basis, for the quarter ended March 30, 2024, and $2.7 million, or 0.23% of average loans outstanding on an annualized basis, for the quarter ended June 30, 2023.

The ACL on loans was $49.1 million, or 1.02% of total loans, at June 30, 2024, compared to $48.2 million, or 1.01% of total loans, at March 31, 2024 and $47.8 million, or 1.02% of total loans, at June 30, 2023. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheets, amounted to $2.9 million at June 30, 2024, compared to $3.4 million at March 31, 2024 and $4.8 million at June 30, 2023.

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 75% of the portfolio secured by property located in Massachusetts and Rhode Island. Approximately 60% of the commercial real estate loans are fixed-rate loans which, in the opinion of management, have limited near-term maturity risk. As of June 30, 2024 and March 31, 2024, commercial loans rated “watch” amounted to $87.7 million and $67.9 million, respectively. Loans are rated “watch” at the point when there are signs of potential weakness. Management performs comprehensive reviews and works proactively with creditworthy borrowers facing financial distress and implements prudent workouts and accommodations to improve the Bank’s prospects of contractual repayment.

Three sub-sectors that management identified as potentially more susceptible to weakness includes business-oriented hotels, non-anchored retail space, and metro office space. As of June 30, 2024, business-oriented hotels loans included 12 loans with a total outstanding balance of $119.7 million, non-anchored retail space loans included 29 loans with a total outstanding balance of $48.6 million, and metro office space loans included one loan with a total outstanding balance of $6.2 million. All of the loans in these groups were performing in accordance with their terms.

Balance Sheet
Total assets decreased $75.2 million, or 1.3%, to $5.79 billion at June 30, 2024, from $5.86 billion at March 31, 2024. The linked-quarter decrease primarily reflects a decrease in cash and cash equivalents, partially offset by loan growth.

Available-for-sale securities decreased $21.9 million to $269.1 million at June 30, 2024 from $291.0 million at March 31, 2024 due to the sale noted above. The unrealized loss on securities available for sale decreased to $65.3 million as of June 30, 2024, as compared to $67.0 million of unrealized losses as of March 31, 2024. Securities held to maturity were flat at $19.7 million, or 0.3% of total assets, at June 30, 2024.

Loans increased $62.5 million, or 1.3%, to $4.84 billion at June 30, 2024, from $4.78 billion at March 31, 2024. The linked-quarter increase was primarily due to increases in commercial and industrial loans of $27.8 million, commercial real estate loans of $25.2 million, and $11.0 million of residential mortgage loans.

Total deposits increased $64.3 million to $4.46 billion at June 30, 2024 from $4.39 billion at March 31, 2024. Compared to the prior quarter, non-certificate accounts decreased $66.0 million and term certificate accounts increased $133.0 million, as a competitive rate environment continued to pressure deposit mix and rates. Brokered deposits decreased $2.7 million. As of June 30, 2024, FDIC-insured deposits were approximately 76% of total deposits, including Bank subsidiary deposits.

Borrowed funds decreased $135.0 million to $619.4 million at June 30, 2024 from $754.4 million at March 31, 2024, as excess liquidity was used to paydown high rate borrowings. As of June 30, 2024, the Bank had $1.16 billion in available borrowing capacity across multiple relationships.

Total stockholders’ equity was $577.3 million at June 30, 2024, compared to $577.7 million at March 31, 2024. Stockholders’ equity decreased 0.1% when compared to the prior quarter, as net income was offset by share repurchases and dividends. The Company continues to implement and execute share repurchase programs, repurchasing 1,230,353 shares at an average price of $10.37, including $0.10 per share of excise tax, during the six months ended June 30, 2024. The tangible-common-equity-to-tangible-assets ratio⁽¹⁾ was 9.03% at June 30, 2024, 8.92% at March 31, 2024, and 9.38% at June 30, 2023. At June 30, 2024, the Company and the Bank had strong capital positions, exceeding all regulatory capital requirements, and are considered well-capitalized.

(1) 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 Massachusetts-chartered trust company. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 30 full-service banking centers located in Massachusetts and Rhode Island, and commercial lending offices in Boston, Massachusetts and Providence, Rhode Island. HarborOne Bank also provides a range of educational resources through “HarborOne U,” with free digital content, webinars, and recordings for small business and personal financial education. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, provides mortgage lending services throughout New England and other states.

Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in general business and economic conditions (including inflation and concerns about inflation) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in 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; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and future pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the SEC, which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The Company’s management believes that the supplemental non-GAAP information, which consists of income statement results excluding the goodwill impairment charge, total adjusted noninterest expense excluding the goodwill impairment charge, diluted earnings per share excluding the goodwill 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, are 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)
		June 30,				March 31,				December 31,				September 30,				June 30,
(in thousands)		2024				2024				2023				2023				2023
Assets
Cash and due from banks		$	48,097			$	36,340			$	38,876			$	38,573			$	43,525
Short-term investments			186,965				357,101				188,474				208,211				209,326
Total cash and cash equivalents			235,062				393,441				227,350				246,784				252,851
Securities available for sale, at fair value			269,078				291,008				290,151				271,078				292,012
Securities held to maturity, at amortized cost			19,725				19,724				19,796				19,795				19,839
Federal Home Loan Bank stock, at cost			25,311				26,565				27,098				23,378				27,123
Asset held for sale			—				348				348				966				966
Loans held for sale, at fair value			41,814				16,434				19,686				17,796				20,949
Loans:
Commercial real estate			2,380,881				2,355,672				2,343,675				2,349,886				2,286,688
Commercial construction			233,926				234,811				208,443				191,224				228,902
Commercial and industrial			499,043				471,215				466,443				450,547				453,422
Total commercial loans			3,113,850				3,061,698				3,018,561				2,991,657				2,969,012
Residential real estate			1,706,678				1,695,686				1,709,714				1,706,950				1,701,766
Consumer			18,704				19,301				22,036				24,247				27,425
Loans			4,839,232				4,776,685				4,750,311				4,722,854				4,698,203
Less: Allowance for credit losses on loans			(49,139	)			(48,185	)			(47,972	)			(48,312	)			(47,821	)
Net loans			4,790,093				4,728,500				4,702,339				4,674,542				4,650,382
Mortgage servicing rights, at fair value			46,209				46,597				46,111				49,201				48,176
Goodwill			59,042				59,042				59,042				69,802				69,802
Other intangible assets			1,136				1,326				1,515				1,704				1,893
Other assets			299,565				279,237				274,460				289,341				275,261
Total assets		$	5,787,035			$	5,862,222			$	5,667,896			$	5,664,387			$	5,659,254
Liabilities and Stockholders' Equity
Deposits:
Demand deposit accounts		$	689,800			$	677,152			$	659,973			$	708,847			$	717,572
NOW accounts			308,016				305,071				305,825				289,141				286,956
Regular savings and club accounts			989,720				1,110,404				1,265,315				1,324,635				1,390,906
Money market deposit accounts			1,100,215				1,061,145				966,201				951,128				834,120
Term certificate accounts			985,293				852,326				863,457				859,266				742,931
Brokered deposits			385,253				387,926				326,638				276,941				315,003
Total deposits			4,458,297				4,394,024				4,387,409				4,409,958				4,287,488
Borrowings			619,372				754,380				568,462				475,470				604,568
Subordinated debt			—				—				—				34,380				34,348
Other liabilities and accrued expenses			132,037				136,135				128,266				159,945				137,318
Total liabilities			5,209,706				5,284,539				5,084,137				5,079,753				5,063,722
Common stock			598				598				598				597				597
Additional paid-in capital			487,980				487,277				486,502				485,144				484,544
Unearned compensation - ESOP			(24,866	)			(25,326	)			(25,785	)			(26,245	)			(26,704	)
Retained earnings			367,584				363,591				359,656				369,930				364,709
Treasury stock			(205,944	)			(199,853	)			(193,590	)			(187,803	)			(181,324	)
Accumulated other comprehensive loss			(48,023	)			(48,604	)			(43,622	)			(56,989	)			(46,290	)
Total stockholders' equity			577,329				577,683				583,759				584,634				595,532
Total liabilities and stockholders' equity		$	5,787,035			$	5,862,222			$	5,667,896			$	5,664,387			$	5,659,254

HarborOne Bancorp, Inc.
Consolidated Statements of Net Income - Trend
(Unaudited)
		Quarters Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
(in thousands, except share data)		2024				2024				2023				2023				2023
Interest and dividend income:
Interest and fees on loans		$	61,512			$	59,937			$	59,499			$	58,124			$	55,504
Interest on loans held for sale			347				243				369				370				326
Interest on securities			2,121				2,065				2,001				2,003				2,035
Other interest and dividend income			3,971				4,659				2,516				2,667				2,935
Total interest and dividend income			67,951				66,904				64,385				63,164				60,800
Interest expense:
Interest on deposits			27,272				26,899				27,310				25,039				20,062
Interest on borrowings			9,329				9,423				6,260				6,439				8,114
Interest on subordinated debentures			—				—				1,122				606				524
Total interest expense			36,601				36,322				34,692				32,084				28,700
Net interest and dividend income			31,350				30,582				29,693				31,080				32,100
Provision (benefit) for credit losses			615				(168	)			644				(113	)			3,283
Net interest and dividend income, after provision for credit losses			30,735				30,750				29,049				31,193				28,817
Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans			3,143				2,013				2,176				2,704				3,300
Changes in mortgage servicing rights fair value			(1,098	)			54				(3,553	)			125				436
Other			2,356				2,276				2,301				2,270				2,312
Total mortgage banking income			4,401				4,343				924				5,099				6,048
Deposit account fees			5,223				4,983				5,178				5,133				5,012
Income on retirement plan annuities			141				145				147				146				128
Gain on sale of asset held for sale			1,809				—				—				—				—
Loss on sale of securities			(1,041	)			—				—				—				—
Bank-owned life insurance income			758				746				1,207				531				511
Other income			628				524				1,448				689				963
Total noninterest income			11,919				10,741				8,904				11,598				12,662
Noninterest expenses:
Compensation and benefits			18,976				17,636				19,199				18,699				18,220
Occupancy and equipment			4,636				4,781				4,670				4,430				4,633
Data processing			2,375				2,479				2,474				2,548				2,403
Loan expense (income)			461				371				(317	)			385				417
Marketing			1,368				816				811				794				925
Professional fees			1,236				1,457				1,690				1,374				1,114
Deposit insurance			993				1,164				795				1,004				1,176
Goodwill impairment			—				—				10,760				—				—
Other expenses			3,099				3,046				3,132				2,638				2,837
Total noninterest expenses			33,144				31,750				43,214				31,872				31,725
Income (loss) before income taxes			9,510				9,741				(5,261	)			10,919				9,754
Income tax provision			2,214				2,441				1,850				2,507				2,275
Net income (loss)		$	7,296			$	7,300			$	(7,111	)		$	8,412			$	7,479
Earnings (losses) per common share:
Basic		$	0.18			$	0.17			$	(0.17	)		$	0.20			$	0.17
Diluted		$	0.18			$	0.17			$	(0.17	)		$	0.20			$	0.17
Weighted average shares outstanding:
Basic			41,293,787				41,912,421				42,111,872				42,876,893				43,063,507
Diluted			41,370,289				42,127,037				42,299,858				42,983,477				43,133,455

HarborOne Bancorp, Inc.
Consolidated Statements of Net Income - Trend
(Unaudited)
		For the Six Months Ended June 30,
(dollars in thousands, except share data)		2024				2023				$ Change				% Change
Interest and dividend income:
Interest and fees on loans		$	121,449			$	108,275			$	13,174			12.2	%
Interest on loans held for sale			590				612				(22	)		(3.6	)
Interest on securities			4,186				4,114				72			1.8
Other interest and dividend income			8,630				3,738				4,892			130.9
Total interest and dividend income			134,855				116,739				18,116			15.5
Interest expense:
Interest on deposits			54,171				35,975				18,196			50.6
Interest on borrowings			18,752				13,219				5,533			41.9
Interest on subordinated debentures			—				1,047				(1,047	)		(100.0	)
Total interest expense			72,923				50,241				22,682			45.1
Net interest and dividend income			61,932				66,498				(4,566	)		(6.9	)
Provision for credit losses			447				5,149				(4,702	)		(91.3	)
Net interest and dividend income, after provision for credit losses			61,485				61,349				136			0.2
Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans			5,156				5,524				(368	)		(6.7	)
Changes in mortgage servicing rights fair value			(1,044	)			(1,256	)			212			16.9
Other			4,632				4,528				104			2.3
Total mortgage banking income			8,744				8,796				(52	)		(0.6	)
Deposit account fees			10,206				9,745				461			4.7
Income on retirement plan annuities			286				247				39			15.8
Gain on sale of asset held for sale			1,809				—				1,809			100.0
Loss on sale of securities			(1,041	)			—				(1,041	)		(100.0	)
Bank-owned life insurance income			1,504				1,011				493			48.8
Other income			1,152				1,553				(401	)		(25.8	)
Total noninterest income			22,660				21,352				1,308			6.1
Noninterest expenses:
Compensation and benefits			36,612				36,019				593			1.6
Occupancy and equipment			9,417				9,673				(256	)		(2.6	)
Data processing			4,854				4,749				105			2.2
Loan expense			832				730				102			14.0
Marketing			2,184				2,106				78			3.7
Professional fees			2,693				2,615				78			3.0
Deposit insurance			2,157				1,686				471			27.9
Other expenses			6,145				5,656				489			8.6
Total noninterest expenses			64,894				63,234				1,660			2.6
Income before income taxes			19,251				19,467				(216	)		(1.1	)
Income tax provision			4,655				4,691				(36	)		(0.8	)
Net income		$	14,596			$	14,776			$	(180	)		(1.2	)%
Earnings per common share:
Basic		$	0.35			$	0.34
Diluted		$	0.35			$	0.33
Weighted average shares outstanding:
Basic			41,603,104				43,955,411
Diluted			41,748,663				44,203,893

HarborOne Bancorp, Inc.
Average Balances and Yield Trend
(Unaudited)
		Quarters Ended
		June 30, 2024								March 31, 2024								June 30, 2023
		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)		$	374,730		$	2,121		2.28	%	$	372,787		$	2,065		2.23	%	$	381,762		$	2,035		2.14	%
Other interest-earning assets			306,361			3,971		5.21			356,470			4,659		5.26			238,891			2,935		4.93
Loans held for sale			20,775			347		6.72			14,260			243		6.85			19,614			326		6.67
Loans
Commercial loans (2)(3)			3,091,004			43,023		5.60			3,040,835			41,653		5.51			2,938,292			38,842		5.30
Residential real estate loans (3)(4)			1,695,059			18,393		4.36			1,700,694			18,175		4.30			1,682,860			16,456		3.92
Consumer loans (3)			19,221			352		7.37			20,539			358		7.01			29,025			419		5.79
Total loans			4,805,284			61,768		5.17			4,762,068			60,186		5.08			4,650,177			55,717		4.81
Total interest-earning assets			5,507,150			68,207		4.98			5,505,585			67,153		4.91			5,290,444			61,013		4.63
Noninterest-earning assets			300,847								299,153								305,132
Total assets		$	5,807,997							$	5,804,738							$	5,595,576
Interest-bearing liabilities:
Savings accounts		$	1,058,524			4,305		1.64		$	1,186,201			5,523		1.87		$	1,421,622			6,165		1.74
NOW accounts			299,536			88		0.12			289,902			75		0.10			280,501			59		0.08
Money market accounts			1,069,153			10,186		3.83			994,353			9,313		3.77			802,373			6,256		3.13
Certificates of deposit			931,255			9,946		4.30			855,070			8,554		4.02			708,087			5,273		2.99
Brokered deposits			300,385			2,747		3.68			356,459			3,434		3.87			281,614			2,309		3.29
Total interest-bearing deposits			3,658,853			27,272		3.00			3,681,985			26,899		2.94			3,494,197			20,062		2.30
Borrowings			776,852			9,329		4.83			764,623			9,423		4.96			666,345			8,114		4.88
Subordinated debentures			—			—		—			—			—		—			34,331			524		6.12
Total borrowings			776,852			9,329		4.83			764,623			9,423		4.96			700,676			8,638		4.94
Total interest-bearing liabilities			4,435,705			36,601		3.32			4,446,608			36,322		3.29			4,194,873			28,700		2.74
Noninterest-bearing liabilities:
Noninterest-bearing deposits			670,494								654,436								712,081
Other noninterest-bearing liabilities			126,477								119,289								88,363
Total liabilities			5,232,676								5,220,333								4,995,317
Total stockholders' equity			575,321								584,405								600,259
Total liabilities and stockholders' equity		$	5,807,997							$	5,804,738							$	5,595,576
Tax equivalent net interest income						31,606								30,831								32,313
Tax equivalent interest rate spread (5)								1.66	%							1.62	%							1.89	%
Less: tax equivalent adjustment						256								249								213
Net interest income as reported					$	31,350							$	30,582							$	32,100
Net interest-earning assets (6)		$	1,071,445							$	1,058,977							$	1,095,571
Net interest margin (7)								2.29	%							2.23	%							2.43	%
Tax equivalent effect								0.02								0.02								0.02
Net interest margin on a fully tax equivalent basis								2.31	%							2.25	%							2.45	%
Ratio of interest-earning assets to interest-bearing liabilities			124.16	%							123.82	%							126.12	%
Supplemental information:
Total deposits, including demand deposits		$	4,329,347		$	27,272				$	4,336,421		$	26,899				$	4,206,278		$	20,062
Cost of total deposits								2.53	%							2.49	%							1.91	%
Total funding liabilities, including demand deposits		$	5,106,199		$	36,601				$	5,101,044		$	36,322				$	4,906,954		$	28,700
Cost of total funding liabilities								2.88	%							2.86	%							2.35	%

(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 and Yield Trend
(Unaudited)
		For the Six Months Ended
		June 30, 2024								June 30, 2023
		Average								Average
		Outstanding						Yield/		Outstanding						Yield/
		Balance			Interest			Cost (8)		Balance			Interest			Cost (8)
		(dollars in thousands)
Interest-earning assets:
Investment securities (1)		$	373,758		$	4,186		2.25	%	$	384,517		$	4,114		2.16	%
Other interest-earning assets			331,416			8,630		5.24			151,644			3,738		4.97
Loans held for sale			17,517			590		6.77			18,865			612		6.54
Loans
Commercial loans (2)(3)			3,065,921			84,675		5.55			2,919,980			75,679		5.23
Residential real estate loans (3)(4)			1,697,878			36,568		4.33			1,665,083			32,072		3.88
Consumer loans (3)			19,879			711		7.19			32,647			938		5.79
Total loans			4,783,678			121,954		5.13			4,617,710			108,689		4.75
Total interest-earning assets			5,506,369			135,360		4.94			5,172,736			117,153		4.57
Noninterest-earning assets			299,999								309,198
Total assets		$	5,806,368							$	5,481,934
Interest-bearing liabilities:
Savings accounts		$	1,122,362			9,827		1.76		$	1,440,403			11,610		1.63
NOW accounts			294,719			163		0.11			278,164			95		0.07
Money market accounts			1,031,753			19,499		3.80			813,472			11,494		2.85
Certificates of deposit			893,162			18,501		4.17			630,791			7,958		2.54
Brokered deposits			328,422			6,181		3.78			305,885			4,818		3.18
Total interest-bearing deposits			3,670,418			54,171		2.97			3,468,715			35,975		2.09
FHLB and FRB borrowings			770,738			18,752		4.89			557,823			13,219		4.78
Subordinated debentures			—			—		—			34,315			1,047		6.15
Total borrowings			770,738			18,752		4.89			592,138			14,266		4.86
Total interest-bearing liabilities			4,441,156			72,923		3.30			4,060,853			50,241		2.49
Noninterest-bearing liabilities:
Noninterest-bearing deposits			662,465								716,782
Other noninterest-bearing liabilities			122,884								95,054
Total liabilities			5,226,505								4,872,689
Total stockholders' equity			579,863								609,245
Total liabilities and stockholders' equity		$	5,806,368							$	5,481,934
Tax equivalent net interest income						62,437								66,912
Tax equivalent interest rate spread (5)								1.64	%							2.07	%
Less: tax equivalent adjustment						505								414
Net interest income as reported					$	61,932							$	66,498
Net interest-earning assets (6)		$	1,065,213							$	1,111,883
Net interest margin (7)								2.26	%							2.59	%
Tax equivalent effect								0.02								0.02
Net interest margin on a fully tax equivalent basis								2.28	%							2.61	%
Ratio of interest-earning assets to interest-bearing liabilities			123.99	%							127.38	%
Supplemental information:
Total deposits, including demand deposits		$	4,332,883		$	54,171				$	4,185,497		$	35,975
Cost of total deposits								2.51	%							1.73	%
Total funding liabilities, including demand deposits		$	5,103,621		$	72,923				$	4,777,635		$	50,241
Cost of total funding liabilities								2.87	%							2.12	%

Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis.

(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 and Yield Trend
(Unaudited)
		Average Balances - Trend - Quarters Ended
			June 30,			March 31,			December 31,			September 30,			June 30,
			2024			2024			2023			2023			2023
		(in thousands)
Interest-earning assets:
Investment securities (1)		$	374,730		$	372,787		$	370,683		$	375,779		$	381,762
Other interest-earning assets			306,361			356,470			205,929			207,234			238,891
Loans held for sale			20,775			14,260			20,010			20,919			19,614
Loans
Commercial loans (2)(3)			3,091,004			3,040,835			3,005,840			2,980,817			2,938,292
Residential real estate loans (3)(4)			1,695,059			1,700,694			1,707,978			1,700,383			1,682,860
Consumer loans (3)			19,221			20,539			22,324			25,126			29,025
Total loans			4,805,284			4,762,068			4,736,142			4,706,326			4,650,177
Total interest-earning assets			5,507,150			5,505,585			5,332,764			5,310,258			5,290,444
Noninterest-earning assets			300,847			299,153			313,729			314,030			305,132
Total assets		$	5,807,997		$	5,804,738		$	5,646,493		$	5,624,288		$	5,595,576
Interest-bearing liabilities:
Savings accounts		$	1,058,524		$	1,186,201		$	1,307,774		$	1,360,728		$	1,421,622
NOW accounts			299,536			289,902			290,147			274,329			280,501
Money market accounts			1,069,153			994,353			963,223			910,694			802,373
Certificates of deposit			931,255			855,070			859,274			818,182			708,087
Brokered deposits			300,385			356,459			288,449			287,428			281,614
Total interest-bearing deposits			3,658,853			3,681,985			3,708,867			3,651,361			3,494,197
Borrowings			776,852			764,623			507,520			508,001			666,345
Subordinated debentures			—			—			22,614			34,364			34,331
Total borrowings			776,852			764,623			530,134			542,365			700,676
Total interest-bearing liabilities			4,435,705			4,446,608			4,239,001			4,193,726			4,194,873
Noninterest-bearing liabilities:
Noninterest-bearing deposits			670,494			654,436			683,548			705,009			712,081
Other noninterest-bearing liabilities			126,477			119,289			137,239			126,742			88,363
Total liabilities			5,232,676			5,220,333			5,059,788			5,025,477			4,995,317
Total stockholders' equity			575,321			584,405			586,705			598,811			600,259
Total liabilities and stockholders' equity		$	5,807,997		$	5,804,738		$	5,646,493		$	5,624,288		$	5,595,576
		Annualized Yield Trend - Quarters Ended
			June 30,			March 31,			December 31,			September 30,			June 30,
			2024			2024			2023			2023			2023
Interest-earning assets:
Investment securities (1)			2.28	%		2.23	%		2.14	%		2.11	%		2.14	%
Other interest-earning assets			5.21	%		5.26	%		4.85	%		5.11	%		4.93	%
Loans held for sale			6.72	%		6.85	%		7.32	%		7.02	%		6.67	%
Commercial loans (2)(3)			5.60	%		5.51	%		5.45	%		5.38	%		5.30	%
Residential real estate loans (3)(4)			4.36	%		4.30	%		4.21	%		4.09	%		3.92	%
Consumer loans (3)			7.37	%		7.01	%		6.82	%		6.51	%		5.79	%
Total loans			5.17	%		5.08	%		5.01	%		4.92	%		4.81	%
Total interest-earning assets			4.98	%		4.91	%		4.81	%		4.74	%		4.63	%
Interest-bearing liabilities:
Savings accounts			1.64	%		1.87	%		2.09	%		1.98	%		1.74	%
NOW accounts			0.12	%		0.10	%		0.17	%		0.11	%		0.08	%
Money market accounts			3.83	%		3.77	%		3.83	%		3.64	%		3.13	%
Certificates of deposit			4.30	%		4.02	%		3.85	%		3.50	%		2.99	%
Brokered deposits			3.68	%		3.87	%		3.71	%		3.60	%		3.29	%
Total interest-bearing deposits			3.00	%		2.94	%		2.92	%		2.72	%		2.30	%
Borrowings			4.83	%		4.96	%		4.89	%		5.03	%		4.88	%
Subordinated debentures			—	%		—	%		19.68	%		7.00	%		6.12	%
Total borrowings			4.83	%		4.96	%		5.52	%		5.15	%		4.94	%
Total interest-bearing liabilities			3.32	%		3.29	%		3.25	%		3.04	%		2.74	%

(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
		June 30,			March 31,			December 31,			September 30,			June 30,
Performance Ratios (annualized):		2024			2024			2023			2023			2023
(dollars in thousands)
Net income (loss)		$	7,296		$	7,300		$	(7,111)		$	8,411		$	7,450
Less: Goodwill impairment charge			—			—			10,760			—			—
Net income, excluding goodwill impairment charge(1)		$	7,296		$	7,300		$	3,649		$	8,411		$	7,450
Average Assets		$	5,807,997		$	5,804,738		$	5,646,493		$	5,624,288		$	5,595,576
Average Equity		$	575,321		$	584,405		$	586,705		$	598,811		$	600,258
Return on average assets (ROAA)			0.50	%		0.50	%		(0.50)	%		0.60	%		0.54	%
Return on average assets (ROAA), excluding goodwill impairment charge(2)			0.50	%		0.50	%		0.26	%		0.60	%		0.54	%
Return on average equity (ROAE)			5.07	%		5.00	%		(4.85)	%		5.62	%		4.98	%
Return on average equity (ROAE), excluding goodwill impairment charge(3)			5.07	%		5.00	%		2.49	%		5.62	%		4.98	%
Total noninterest expense		$	33,144		$	31,750		$	43,214		$	31,872		$	31,725
Less: Amortization of other intangible assets			189			189			189			189			189
Total adjusted noninterest expense			32,955			31,561			43,025			31,683			31,536
Less: Goodwill impairment charge			—			—			10,760			—			—
Total adjusted noninterest expense, excluding goodwill impairment(4)		$	32,955		$	31,561		$	32,265		$	31,683		$	31,536
Net interest and dividend income		$	31,350		$	30,582		$	29,693		$	31,080		$	32,100
Total noninterest income			11,919			10,741			8,904			11,598			12,662
Total revenue		$	43,269		$	41,323		$	38,597		$	42,678		$	44,762
Efficiency ratio (5)			76.16	%		76.38	%		111.47	%		74.24	%		70.45	%
Efficiency ratio, excluding goodwill impairment charge(6)			76.16	%		76.38	%		83.59	%		74.24	%		70.45	%

(1) This non-GAAP measure represents net income, excluding goodwill impairment charge

(2) This non-GAAP measure represents net income, excluding goodwill impairment charge to average assets

(3) This non-GAAP measure represents net income, excluding goodwill impairment charge to average equity

(4) This non-GAAP measure represents adjusted noninterest expense, excluding goodwill impairment charge

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

(6) This non-GAAP measure represents adjusted noninterest expense, excluding goodwill impairment divided by total revenue

		At or for the Quarters Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
Asset Quality		2024			2024			2023			2023			2023
(dollars in thousands)
Total nonperforming assets		$	9,766		$	12,201		$	17,582		$	18,795		$	20,234
Nonperforming assets to total assets			0.17	%		0.21	%		0.31	%		0.33	%		0.36	%
Allowance for credit losses on loans to total loans			1.02	%		1.01	%		1.01	%		1.02	%		1.02	%
Net charge-offs (recoveries)		$	195		$	125		$	1,311		$	(18	)	$	2,671
Annualized net charge-offs (recoveries)/average loans			0.02	%		0.01	%		0.11	%		—	%		0.23	%
Allowance for credit losses on loans to nonperforming loans			503.18	%		396.27	%		273.92	%		257.21	%		236.62	%

HarborOne Bancorp, Inc.
Selected Financial Highlights
(Unaudited)
		Quarters Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
Capital and Share Related		2024			2024			2023			2023			2023
(dollars in thousands, except share data)
Common stock outstanding			44,459,490			45,055,006			45,401,224			45,915,364			46,575,478
Book value per share		$	12.99		$	12.82		$	12.86		$	12.73		$	12.79
Tangible common equity:
Total stockholders' equity		$	577,329		$	577,683		$	583,759		$	584,634		$	595,532
Less: Goodwill			59,042			59,042			59,042			69,802			69,802
Less: Other intangible assets (1)			1,136			1,326			1,515			1,704			1,893
Tangible common equity		$	517,151		$	517,315		$	523,202		$	513,128		$	523,837
Tangible book value per share (2)		$	11.63		$	11.48		$	11.52		$	11.18		$	11.25
Tangible assets:
Total assets		$	5,787,035		$	5,862,222		$	5,667,896		$	5,664,387		$	5,659,254
Less: Goodwill			59,042			59,042			59,042			69,802			69,802
Less: Other intangible assets			1,136			1,326			1,515			1,704			1,893
Tangible assets		$	5,726,857		$	5,801,854		$	5,607,339		$	5,592,881		$	5,587,559
Tangible common equity / tangible assets (3)			9.03	%		8.92	%		9.33	%		9.17	%		9.38	%

(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
		June 30,				March 31,				December 31,				September 30,				June 30,
Statements of Net Income for HarborOne Bank Segment:		2024				2024				2023				2023				2023
		(Dollars in thousands)
Net interest and dividend income		$	31,098			$	30,485			$	30,637			$	31,468			$	32,490
Provision (benefit) for credit losses			615				(168	)			644				(113	)			3,283
Net interest and dividend income, after provision for credit losses			30,483				30,653				29,993				31,581				29,207
Mortgage banking income:
Intersegment loss			(464	)			(236	)			(159	)			(198	)			(358	)
Changes in mortgage servicing rights fair value			(74	)			(32	)			(257	)			18				29
Other			180				180				185				188				195
Total mortgage banking (loss) income			(358	)			(88	)			(231	)			8				(134	)
Other noninterest income:
Deposit account fees			5,223				4,983				5,178				5,132				5,013
Income on retirement plan annuities			141				145				147				146				128
Gain on sale of asset held for sale			1,809				—				—				—				—
Loss on sale of securities			(1,041	)			—				—				—				—
Bank-owned life insurance income			758				746				1,207				531				511
Other income			624				517				1,405				694				962
Total noninterest income			7,156				6,303				7,706				6,511				6,480
Noninterest expenses:
Compensation and benefits			15,627				15,307				16,535				15,238				15,067
Occupancy and equipment			4,052				4,150				4,038				3,828				3,910
Data processing			2,363				2,470				2,462				2,527				2,355
Loan expense			188				71				153				128				96
Marketing			1,331				783				751				709				787
Professional fees			771				1,056				1,404				914				699
Deposit insurance			992				1,164				794				1,004				1,176
Other expenses			2,467				2,406				2,476				1,924				2,103
Total noninterest expenses			27,791				27,407				28,613				26,272				26,193
Less: Amortization of other intangible assets			189				189				189				190				189
Total adjusted noninterest expense			27,602				27,218				28,424				26,082				26,004
Income before income taxes			9,848				9,549				9,086				11,820				9,494
Provision for income taxes			2,310				2,386				2,535				2,716				2,193
Net income		$	7,538			$	7,163			$	6,551			$	9,104			$	7,301
Efficiency ratio (1) - QTD			72.15	%			73.99	%			74.13	%			68.67	%			66.73	%
Efficiency ratio (1) - YTD			73.05	%			73.99	%			68.49	%			66.64	%			65.67	%

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

HarborOne Bancorp, Inc.
Segments Key Financial Data
(Unaudited)
		Quarters Ended
		June 30,				March 31,			December 31,				September 30,				June 30,
Statements of Net Income for HarborOne Mortgage Segment:		2024				2024			2023				2023				2023
		(Dollars in thousands)
Net interest and dividend income		$	240			$	80		$	160			$	199			$	120
Mortgage banking income:
Gain on sale of mortgage loans			3,141				2,013			2,176				2,704				3,300
Intersegment gain			464				308			56				249				90
Changes in mortgage servicing rights fair value			(1,024	)			86			(3,296	)			107				407
Other			2,177				2,097			2,116				2,082				2,117
Total mortgage banking income			4,758				4,504			1,052				5,142				5,914
Other noninterest income (loss)			4				10			2				(4	)			—
Total noninterest income			4,762				4,514			1,054				5,138				5,914
Noninterest expenses:
Compensation and benefits			3,944				2,919			3,217				4,014				3,700
Occupancy and equipment			547				604			596				567				688
Data processing			11				9			13				21				48
Loan expense			274				304			(470	)			258				321
Marketing			36				33			60				85				138
Professional fees			131				132			120				155				180
Goodwill impairment			—				—			10,760				—				—
Other expenses			326				310			371				390				418
Total noninterest expenses			5,269				4,311			14,667				5,490				5,493
Income (loss) before income taxes			(267	)			283			(13,453	)			(153	)			541
Income tax (benefit) provision			(76	)			60			(596	)			(15	)			232
Net income (loss)		$	(191	)		$	223		$	(12,857	)		$	(138	)		$	309
Closed loan volume		$	172,994			$	102,101		$	124,225			$	157,572			$	172,153
Gain on sale margin			1.82	%			1.97	%		1.75	%			1.72	%			1.92	%
Efficiency ratio (1) - QTD			105.34	%			93.84	%		1,208.15	%			102.87	%			91.03	%
Efficiency ratio, excluding goodwill impairment (2) - QTD			105.34	%			93.84	%		321.83	%			102.87	%			91.03	%
Efficiency ratio (1) - YTD			99.83	%			93.84	%		192.98	%			109.91	%			113.87	%
Efficiency ratio, excluding goodwill impairment (2) - YTD			99.83	%			93.84	%		125.94	%			109.91	%			113.87	%

(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
Source: HarborOne Bancorp, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725061729/en/

Stephen W. Finocchio, Executive Vice President and Chief Financial Officer

(508)-895-1180

sfinocchio@harborone.com

Source: HarborOne Bancorp, Inc.

FAQ

What was HarborOne Bancorp's (HONE) net income for Q2 2024?

HarborOne Bancorp (HONE) reported net income of $7.3 million, or $0.18 per diluted share, for the second quarter of 2024.

How much did HarborOne's (HONE) loans grow in Q2 2024?

HarborOne's (HONE) loans increased by $62.5 million, or 5.2% annualized, in the second quarter of 2024.

What was HarborOne's (HONE) net interest margin in Q2 2024?

HarborOne's (HONE) net interest margin improved to 2.31% in Q2 2024, up from 2.25% in the previous quarter.

Did HarborOne (HONE) announce a share repurchase program in Q2 2024?

Yes, HarborOne (HONE) commenced a new share repurchase program to repurchase approximately 5% of outstanding shares over the next year.

What was HarborOne's (HONE) asset quality like in Q2 2024?

HarborOne's (HONE) asset quality improved in Q2 2024, with nonperforming loans as a percentage of total loans decreasing to 0.20% from 0.25% in the previous quarter.