HarborOne Bancorp, Inc. Announces 2019 Fourth Quarter Earnings

BROCKTON, Mass.--()--HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $4.3 million, or $0.08 per basic and diluted share, for the fourth quarter of 2019, compared to $7.1 million, or $0.13 per basic and diluted share, for the preceding quarter and $111,000, or $0.00 per basic and diluted share, for the same period last year. For the year ended December 31, 2019 net income was $18.3 million, or $0.33 per basic and diluted share, compared to $11.4 million, or $0.20 per basic and diluted share, for the same period last year.

On August 14, 2019, the Company completed its second step conversion from the mutual holding company to the stock holding company form of organization and related common stock offering. All historical share and per share information has been restated to reflect the 1.795431 exchange ratio.

Selected highlights:

  • Total commercial loans amounted to $1.6 billion, up $85.3 million or 6%, from the preceding quarter and up $259.2 million, or 19%, year over year.
  • Total deposits amounted to $2.9 billion, up $18.4 million from the preceding quarter and up $257.8 million, or 10% year over year.
  • Strong residential real estate mortgage origination activity, increasing 4% from the preceding quarter and 54% year over year.
  • Net interest and dividend income for the year increased $20.1 million, or 23% from the prior year.

“We’re pleased that focusing on the fundamentals of our strategic plan, strong deposit and commercial loan growth, and capitalizing on a strong New England market, yielded solid results,” said James Blake, CEO, HarborOne. “We are committed to continued growth over the next couple of years.” “The key to our success is our people,” added Joseph Casey, President, HarborOne, “We’re making strategic investments in our business, people and processes to drive improved productivity and efficiency.”

Net Interest Income
The Company’s net interest and dividend income was $28.3 million for the quarter ended December 31, 2019, up $349,000, or 1.2%, from $28.0 million for the quarter ended September 30, 2019 and up $1.5 million, or 5.8%, from $26.8 million for the quarter ended December 31, 2018. The tax-equivalent interest rate spread and net interest margin were 2.70% and 3.08%, respectively, for the quarter ended December 31, 2019 compared to 2.73% and 3.11%, respectively, for the quarter ended September 30, 2019, and 3.00% and 3.26%, respectively, for the quarter ended December 31, 2018.

The increase in net interest and dividend income from the preceding quarter reflected flat interest and dividend income and a decrease of $356,000, or 3.0%, in total interest expense. Interest on loans in the fourth quarter included $1.1 million in accretion income from the fair value discount on loans acquired from Coastway Bancorp, Inc. (“Coastway”) and $268,000 in prepayment penalties on commercial loans. Accretion income and prepayment penalties in the previous quarter were $1.1 million and $5,000, respectively. The yield on loans was 4.55% for the quarter ended December 31, 2019 down from 4.64% for the quarter ended September 30, 2019. The decrease in interest expense primarily reflected a decrease in interest rates, resulting in a 7 basis point decrease in the cost of interest-bearing deposits offset by a shift in the deposit mix. The average balance of money market accounts and certificates of deposits decreased quarter over quarter, $12.6 million and $20.1 million, respectively, while the lower cost savings account average balance increased $52.0 million from the prior quarter. Average FHLB advances increased $35.5 million partially offset by a 12 basis point decrease in the cost of those funds, resulting in an increase of $136,000 in interest expense on FHLB borrowings.

The increase in net interest and dividend income from the prior year quarter reflected a $2.8 million, or 7.6%, increase in total interest and dividend income partially offset by an increase of $1.3 million, or 12.4%, in total interest expense. The increases in total interest and dividend income reflected an increase in the average balance of interest-earning assets of $382.5 million partially offset by a 17 basis point decrease in the yield on those assets. The increase in average assets largely reflects commercial loan growth. Total interest expense increased primarily due to an increase in average interest-bearing deposits of $273.2 million with a 22 basis point increase in the cost of those funds, due to organic deposit growth in money market and savings accounts. Average FHLB borrowings decreased $188.9 million and the cost of those funds increased by 4 basis points.

Noninterest Income
Noninterest income increased $866,000, or 5.0%, to $18.1 million for the quarter ended December 31, 2019 from $17.3 million for the quarter ended September 30, 2019 primarily due to an increase in mortgage banking income of $1.5 million, partially offset by a loss on assets held for sale of $482,000 and a net decrease of $60,000 in the other noninterest income categories, excluding gain on sale and call of securities, net. Lower mortgage rates provided higher than normal seasonal mortgage origination activity and resulted in a 4% increase in mortgage production by HarborOne Mortgage, LLC (“HarborOne Mortgage”) compared to the third quarter of 2019. The 10-year Treasury Constant Maturity rate rebounded at the end of the fourth quarter of 2019 and positively impacted the fair value of the mortgage servicing rights, resulting in a $625,000 increase in their fair value in the fourth quarter as compared to a $2.5 million decrease in their fair value in the preceding quarter. The loss on asset held for sale reflects a write down to fair value on the transfer of the former Coastway corporate office in Warwick, Rhode Island to assets held for sale, in anticipation of closing on the sale in the first half of 2020. We plan to execute a short-term lease-back for a small portion of the office space providing significant savings.

Noninterest income increased $6.5 million, or 55.7%, as compared to the quarter ended December 31, 2018 primarily due to a $7.0 million, or 116.6%, increase in mortgage banking income. Mortgage banking income increased compared to the same period last year, due to the increase in the fair value of mortgage servicing rights of $625,000 in 2019 as compared to a $1.7 million decrease in 2018. Mortgage originations increased primarily as a result of lower residential mortgage interest rates and increased refinancing volume. Deposit account fee income increased $267,000 reflecting new accounts, and other income increased $372,000 as a result of increased swap fee income. The increases were partially offset by a decrease of $660,000 in income on bank-owned life insurance and the above noted loss on assets held for sale. The quarter ended December 31, 2018 included a death benefit of $746,000 included in bank-owned life insurance income.

Noninterest Expense
Noninterest expenses were $38.7 million for the quarter ended December 31, 2019, an increase of $2.5 million, or 7.0%, from the quarter ended September 30, 2019, driven by a $1.6 million increase in professional fees, a $481,000 increase in compensation and benefits, and a $230,000 increase in deposit insurance. The increase in professional fees is primarily due to an increase in consulting fees. HarborOne Mortgage recorded $712,000 in consulting expense to review the filings effected by the Home Mortgage Disclosure Act regulation expansion. The Bank also had increased consulting expense for initiatives in human resources, finance, retail and technology. The increase in compensation and benefits is primarily due to ESOP expense. For the quarter ended December 31, 2019 and the preceding quarter, deposit insurance expense was impacted by the Bank’s FDIC assessment credit awards and a reduction in the assessment rate due to improved capital ratios as a result of the second step conversion.

Total noninterest expenses increased $2.1 million, or 5.9%, from the quarter ended December 31, 2018. Compensation and benefits increased $3.7 million, professional fees increased $1.2 million, loan expense increased $666,000 and occupancy and equipment expense increased $417,000. The increases were partially offset by a $567,000 decrease in deposit insurance expense primarily as a result of the FDIC credit awards noted above. Additionally, the quarter ended December 31, 2018 included $3.8 million in merger expenses. The increase in compensation and benefit expense and loan expense primarily reflected the increased volume of residential real estate mortgage originations. The increase in occupancy and equipment expense is primarily due to the acquisition of Coastway and expenses related to the new Stoughton branch and the Boston branch and commercial lending office.

Income Tax Provision
The effective tax rate was 33.6% for the quarter ended December 31, 2019, compared to 12.9% for the quarter ended September 30, 2019 and 68.0% for the quarter ended December 31, 2018. The increase in the effective tax rate over the preceding quarter reflects higher taxable income than was projected in the third quarter and an increase in unfavorable permanent items. In addition, the effective tax rate for the quarter ended September 30, 2019 was impacted by the 2015 federal tax refund of $1.3 million and the 2015 Massachusetts state tax refund of $39,700. The effective tax rate for the quarter ended December 31, 2018 was primarily impacted by nondeductible merger expenses in the Coastway acquisition. The effective tax rate for the years ended December 31, 2019 and 2018 was 19.4% and 19.8%, respectively. The effective tax rate for 2020 is expected to be approximately 28%.

Asset Quality
The Company recorded a provision for loan losses of $1.3 million for the quarter ended December 31, 2019, compared to $889,000 for the quarter ended September 30, 2019 and $1.5 million for the quarter ended December 31, 2018. The provisions for loan losses are primarily due to commercial real estate loan growth. Changes in the provision for loan losses are based on management’s assessment of loan portfolio growth and composition changes, historical charge-off trends, and ongoing evaluation of credit quality and current economic conditions.

Net charge-offs totaled $235,000 for the quarter ended December 31, 2019, or 0.03%, of average loans outstanding on an annualized basis, compared to $106,000, or 0.01% of average loans outstanding on an annualized basis, for the quarter ended September 30, 2019 and $287,000, or 0.04% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2018.

The allowance for loan losses was $24.1 million, or 0.76%, of total loans at December 31, 2019, compared to $23.0 million, or 0.74%, of total loans at September 30, 2019 and $20.7 million, or 0.69%, of total loans at December 31, 2018.

Total nonperforming assets were $31.0 million at December 31, 2019 compared to $27.9 million at September 30, 2019 and $18.5 million at December 31, 2018. Nonperforming assets as a percentage of total assets were 0.76% at December 31, 2019, 0.71% at September 30, 2019 and 0.51% at December 31, 2018. The increase in nonperforming assets from the preceding quarter was primarily due to two commercial loans to one borrower totaling $2.0 million for which no specific reserve is required at this time. The Company continues to minimize loan losses through diligent collection efforts, prudent workout arrangements and strong underwriting.

Balance Sheet
Total assets increased $109.9 million, or 2.8%, to $4.06 billion at December 31, 2019 from $3.95 billion at September 30, 2019. The increase primarily reflects an increase of $59.3 million in loans and the purchase of $40.0 million in bank-owned life insurance.

Net loans increased $58.3 million, or 1.9%, to $3.15 billion at December 31, 2019 from $3.09 billion at September 30, 2019. The net increase in loans for the three months ended December 31, 2019 was primarily due to increases in commercial real estate loans of $84.3 million and commercial loans of $7.6 million, partially offset by decreases in residential real estate loans of $13.3 million, commercial construction loans of $6.6 million, and consumer loans of $12.8 million. Loans held for sale increased $8.4 million, or 8.3%, to $110.6 million at December 31, 2019 from $102.1 million at September 30, 2019.

Total deposits increased $18.4 million, or 0.6%, to $2.94 billion at December 31, 2019 from $2.92 billion at September 30, 2019. Compared to the prior quarter, non-certificate accounts increased $4.7 million, brokered deposits increased $14.7 million and term CDs decreased $986,000. FHLB borrowings were $354.1 million at December 31, 2019 and $271.1 million at September 30, 2019.

Total stockholders’ equity was $665.8 million at December 31, 2019 compared to $659.6 million at September 30, 2019 and $357.6 million at December 31, 2018. The tangible common equity to tangible assets ratio was 14.81% at December 31, 2019, 15.06% at September 30, 2019 and 7.81% at December 31, 2018. The increase in stockholders’ equity and ratios from December 31, 2018 to December 31, 2019 primarily reflects the results of the Company’s second step offering, net of the additional ESOP funding. At December 31, 2019, the Company and the Bank exceeded all regulatory capital requirements.

About HarborOne Bancorp, Inc.
HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, the largest co-operative bank in New England. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 25 full-service branches located in Massachusetts and Rhode Island, one limited service branch and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. The Bank also provides a range of educational services through “HarborOne U,” with classes on small business, financial literacy and personal enrichment at two campuses located adjacent to our Brockton and Mansfield locations. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, is a full-service mortgage lender with more than 30 offices in Massachusetts, Rhode Island, New Hampshire, Maine, and New Jersey and is also licensed to lend in four additional states.

Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, acquisitions may not produce results at levels or within time frames originally anticipated; adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or 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 the value of securities in the Company’s investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government 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 Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne Bancorp, Inc.’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The Company’s management believes that the supplemental non-GAAP information, which consists of the tax equivalent basis for yields, the efficiency ratio, tangible common equity to tangible assets ratio and tangible book value per share is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

 

HarborOne Bancorp, Inc.

Consolidated Balance Sheet Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands)

 

2019

 

2019

 

2019

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

24,464

 

$

27,758

 

$

27,205

 

$

25,227

 

$

27,686

Short-term investments

 

 

187,152

 

 

210,873

 

 

51,502

 

 

76,328

 

 

77,835

Total cash and cash equivalents

 

 

211,616

 

 

238,631

 

 

78,707

 

 

101,555

 

 

105,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

239,473

 

 

204,133

 

 

202,457

 

 

219,966

 

 

209,293

Securities held to maturity, at amortized cost

 

 

26,372

 

 

27,099

 

 

34,752

 

 

41,104

 

 

44,688

Federal Home Loan Bank stock, at cost

 

 

17,121

 

 

13,466

 

 

14,876

 

 

16,134

 

 

24,969

Asset held for sale

 

 

8,536

 

 

 

 

 

 

 

 

Loans held for sale, at fair value

 

 

110,552

 

 

102,121

 

 

84,651

 

 

32,449

 

 

42,107

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

1,172,351

 

 

1,088,036

 

 

1,027,884

 

 

952,404

 

 

934,420

Commercial construction

 

 

153,907

 

 

160,549

 

 

157,130

 

 

158,504

 

 

161,660

Commercial

 

 

306,282

 

 

298,652

 

 

301,056

 

 

299,658

 

 

277,271

Total commercial loans

 

 

1,632,540

 

 

1,547,237

 

 

1,486,070

 

 

1,410,566

 

 

1,373,351

Residential real estate

 

 

1,100,424

 

 

1,113,704

 

 

1,121,335

 

 

1,115,424

 

 

1,115,456

Consumer

 

 

432,769

 

 

445,531

 

 

453,159

 

 

469,346

 

 

491,445

Loans

 

 

3,165,733

 

 

3,106,472

 

 

3,060,564

 

 

2,995,336

 

 

2,980,252

Less: Allowance for loan losses

 

 

(24,060)

 

 

(23,044)

 

 

(22,261)

 

 

(21,282)

 

 

(20,655)

Net deferred loan costs

 

 

5,825

 

 

5,792

 

 

5,377

 

 

5,193

 

 

5,255

Net loans

 

 

3,147,498

 

 

3,089,220

 

 

3,043,680

 

 

2,979,247

 

 

2,964,852

Mortgage servicing rights, at fair value

 

 

17,150

 

 

16,067

 

 

18,156

 

 

20,231

 

 

22,217

Goodwill

 

 

69,802

 

 

69,635

 

 

69,635

 

 

69,635

 

 

70,088

Other intangible assets

 

 

6,035

 

 

6,482

 

 

7,100

 

 

7,739

 

 

8,379

Other assets

 

 

204,766

 

 

182,166

 

 

183,410

 

 

167,936

 

 

161,007

Total assets

 

$

4,058,921

 

$

3,949,020

 

$

3,737,424

 

$

3,655,996

 

$

3,653,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposit accounts

 

$

406,403

 

$

446,433

 

$

447,448

 

$

432,961

 

$

412,906

NOW accounts

 

 

165,877

 

 

143,547

 

 

147,058

 

 

141,419

 

 

143,611

Regular savings and club accounts

 

 

626,685

 

 

585,327

 

 

544,401

 

 

497,697

 

 

482,088

Money market deposit accounts

 

 

856,830

 

 

875,804

 

 

885,775

 

 

842,824

 

 

758,933

Term certificate accounts

 

 

887,078

 

 

873,397

 

 

944,923

 

 

921,744

 

 

887,523

Total deposits

 

 

2,942,873

 

 

2,924,508

 

 

2,969,605

 

 

2,836,645

 

 

2,685,061

Short-term borrowed funds

 

 

183,000

 

 

60,000

 

 

98,000

 

 

126,000

 

 

290,000

Long-term borrowed funds

 

 

171,132

 

 

211,140

 

 

211,149

 

 

229,935

 

 

229,936

Subordinated debt

 

 

33,907

 

 

33,875

 

 

33,843

 

 

33,812

 

 

33,799

Other liabilities and accrued expenses

 

 

62,215

 

 

59,943

 

 

53,709

 

 

66,156

 

 

56,751

Total liabilities

 

 

3,393,127

 

 

3,289,466

 

 

3,366,306

 

 

3,292,548

 

 

3,295,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

584

 

 

584

 

 

327

 

 

327

 

 

327

Additional paid-in capital

 

 

460,232

 

 

458,599

 

 

154,730

 

 

153,326

 

 

152,156

Unearned compensation - ESOP

 

 

(33,137)

 

 

(33,838)

 

 

(9,793)

 

 

(9,942)

 

 

(10,091)

Retained earnings

 

 

237,356

 

 

233,049

 

 

225,936

 

 

221,155

 

 

219,088

Treasury stock

 

 

(721)

 

 

(721)

 

 

(1,548)

 

 

(1,548)

 

 

(1,548)

Accumulated other comprehensive income (loss)

 

 

1,480

 

 

1,881

 

 

1,466

 

 

130

 

 

(2,358)

Total stockholders' equity

 

 

665,794

 

 

659,554

 

 

371,118

 

 

363,448

 

 

357,574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

4,058,921

 

$

3,949,020

 

$

3,737,424

 

$

3,655,996

 

$

3,653,121

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands, except share data)

 

2019

 

2019

 

2019

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

36,195

 

$

36,230

 

$

35,438

 

$

34,365

 

$

33,947

Interest on loans held for sale

 

 

1,120

 

 

747

 

 

542

 

 

358

 

 

648

Interest on securities

 

 

1,580

 

 

1,542

 

 

1,850

 

 

1,847

 

 

1,788

Other interest and dividend income

 

 

828

 

 

1,211

 

 

448

 

 

483

 

 

540

Total interest and dividend income

 

 

39,723

 

 

39,730

 

 

38,278

 

 

37,053

 

 

36,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

9,480

 

 

9,972

 

 

9,362

 

 

8,243

 

 

7,181

Interest on FHLB borrowings

 

 

1,385

 

 

1,249

 

 

1,679

 

 

2,275

 

 

2,400

Interest on subordinated debentures

 

 

524

 

 

524

 

 

524

 

 

505

 

 

552

Total interest expense

 

 

11,389

 

 

11,745

 

 

11,565

 

 

11,023

 

 

10,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

28,334

 

 

27,985

 

 

26,713

 

 

26,030

 

 

26,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

1,251

 

 

889

 

 

1,750

 

 

857

 

 

1,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for loan losses

 

 

27,083

 

 

27,096

 

 

24,963

 

 

25,173

 

 

25,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in mortgage servicing rights fair value

 

 

625

 

 

(2,474)

 

 

(2,241)

 

 

(2,151)

 

 

(1,734)

Other

 

 

12,365

 

 

13,979

 

 

10,896

 

 

6,653

 

 

7,730

Total mortgage banking income

 

 

12,990

 

 

11,505

 

 

8,655

 

 

4,502

 

 

5,996

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

4,274

 

 

4,186

 

 

4,056

 

 

3,778

 

 

4,007

Income on retirement plan annuities

 

 

102

 

 

104

 

 

100

 

 

96

 

 

101

Loss on asset held for sale

 

 

(482)

 

 

 

 

 

 

 

 

Gain on sale and call of securities, net

 

 

 

 

77

 

 

1,267

 

 

 

 

5

Bank-owned life insurance income

 

 

343

 

 

256

 

 

253

 

 

253

 

 

1,003

Other income

 

 

912

 

 

1,145

 

 

1,387

 

 

1,213

 

 

540

Total noninterest income

 

 

18,139

 

 

17,273

 

 

15,718

 

 

9,842

 

 

11,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

23,719

 

 

23,238

 

 

20,585

 

 

19,245

 

 

20,062

Occupancy and equipment

 

 

4,366

 

 

4,171

 

 

4,411

 

 

4,448

 

 

3,949

Data processing

 

 

2,251

 

 

2,196

 

 

2,199

 

 

2,046

 

 

1,965

Loan expense

 

 

1,893

 

 

1,704

 

 

1,334

 

 

1,271

 

 

1,227

Marketing

 

 

771

 

 

799

 

 

1,177

 

 

958

 

 

611

Professional fees

 

 

2,470

 

 

889

 

 

1,384

 

 

946

 

 

1,237

Deposit insurance

 

 

5

 

 

(225)

 

 

589

 

 

666

 

 

572

Merger expenses

 

 

 

 

 

 

 

 

 

 

3,808

Other expenses

 

 

3,260

 

 

3,431

 

 

3,402

 

 

3,012

 

 

3,162

Total noninterest expenses

 

 

38,735

 

 

36,203

 

 

35,081

 

 

32,592

 

 

36,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

6,487

 

 

8,166

 

 

5,600

 

 

2,423

 

 

347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

2,180

 

 

1,053

 

 

819

 

 

356

 

 

236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

4,307

 

$

7,113

 

$

4,781

 

$

2,067

 

$

111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.08

 

$

0.13

 

$

0.08

 

$

0.04

 

$

Diluted

 

$

0.08

 

$

0.13

 

$

0.08

 

$

0.04

 

$

Weighted average shares outstanding (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

54,208,629

 

 

55,638,734

 

 

56,704,297

 

 

56,666,979

 

 

56,684,405

Diluted

 

 

54,209,182

 

 

55,638,734

 

 

56,704,297

 

 

56,666,979

 

 

56,684,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Share amounts related to periods prior to the date of the completion of the second step offering ("stock offering") (August 14, 2019) have been restated to give retroactive recognition to the exchange ratio applied in the stock offering (1.795431-to-one)

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

 

 

(dollars in thousands, except share data)

 

2019

 

2018

 

$ Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

142,228

 

$

105,432

 

$

36,796

 

34.9

%

Interest on loans held for sale

 

 

2,767

 

 

2,205

 

 

562

 

25.5

 

Interest on securities

 

 

6,819

 

 

6,480

 

 

339

 

5.2

 

Other interest and dividend income

 

 

2,970

 

 

1,591

 

 

1,379

 

86.7

 

Total interest and dividend income

 

 

154,784

 

 

115,708

 

 

39,076

 

33.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

37,057

 

 

20,563

 

 

16,494

 

80.2

 

Interest on FHLB borrowings

 

 

6,588

 

 

5,474

 

 

1,114

 

20.4

 

Interest on subordinated debentures

 

 

2,077

 

 

741

 

 

1,336

 

180.3

 

Total interest expense

 

 

45,722

 

 

26,778

 

 

18,944

 

70.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

109,062

 

 

88,930

 

 

20,132

 

22.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

4,747

 

 

3,828

 

 

919

 

24.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for loan losses

 

 

104,315

 

 

85,102

 

 

19,213

 

22.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

Changes in mortgage servicing rights fair value

 

 

(6,241)

 

 

(1,396)

 

 

(4,845)

 

(347.1)

 

Other

 

 

43,893

 

 

32,005

 

 

11,888

 

37.1

 

Total mortgage banking income

 

 

37,652

 

 

30,609

 

 

7,043

 

23.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

16,294

 

 

13,500

 

 

2,794

 

20.7

 

Income on retirement plan annuities

 

 

402

 

 

433

 

 

(31)

 

(7.2)

 

Loss on disposal of asset held for sale

 

 

(482)

 

 

 

 

(482)

 

(100.0)

 

Gain on sale and call of securities, net

 

 

1,344

 

 

5

 

 

1,339

 

100.0

 

Bank-owned life insurance income

 

 

1,105

 

 

1,728

 

 

(623)

 

(36.1)

 

Other income

 

 

4,657

 

 

2,923

 

 

1,734

 

59.3

 

Total noninterest income

 

 

60,972

 

 

49,198

 

 

11,774

 

23.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

86,787

 

 

70,568

 

 

16,219

 

23.0

 

Occupancy and equipment

 

 

17,396

 

 

13,212

 

 

4,184

 

31.7

 

Data processing

 

 

8,692

 

 

6,789

 

 

1,903

 

28.0

 

Loan expense

 

 

6,202

 

 

5,382

 

 

820

 

15.2

 

Marketing

 

 

3,705

 

 

3,333

 

 

372

 

11.2

 

Professional fees

 

 

5,689

 

 

3,832

 

 

1,857

 

48.5

 

Deposit insurance

 

 

1,035

 

 

2,097

 

 

(1,062)

 

(50.6)

 

Merger expenses

 

 

 

 

5,092

 

 

(5,092)

 

(100.0)

 

Other expenses

 

 

13,105

 

 

9,788

 

 

3,317

 

33.9

 

Total noninterest expenses

 

 

142,611

 

 

120,093

 

 

22,518

 

18.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

22,676

 

 

14,207

 

 

8,469

 

59.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

4,408

 

 

2,813

 

 

1,595

 

56.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

18,268

 

$

11,394

 

$

6,874

 

60.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (1):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

$

0.20

 

 

 

 

 

 

Diluted

 

$

0.33

 

$

0.20

 

 

 

 

 

 

Weighted average shares outstanding (1):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

55,731,637

 

 

56,689,591

 

 

 

 

 

 

Diluted

 

 

55,731,776

 

 

56,689,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Share amounts related to periods prior to the date of the completion of the stock offering (August 14, 2019) have been restated to give retroactive recognition to the exchange ratio applied in the stock offering (1.795431-to-one)

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost (6)

 

Balance

 

Interest

 

Cost (6)

 

Balance

 

Interest

 

Cost (6)

 

 

 

(dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

$

3,254,601

 

$

37,315

 

4.55

%

$

3,160,393

 

$

36,977

 

4.64

%

$

2,964,531

 

$

34,595

 

4.63

%

Investment securities (2)

 

 

236,828

 

 

1,595

 

2.67

 

 

224,379

 

 

1,562

 

2.76

 

 

253,631

 

 

1,832

 

2.87

 

Other interest-earning assets

 

 

159,211

 

 

828

 

2.06

 

 

185,063

 

 

1,211

 

2.59

 

 

49,932

 

 

540

 

4.29

 

Total interest-earning assets

 

 

3,650,640

 

 

39,738

 

4.32

 

 

3,569,835

 

 

39,750

 

4.42

 

 

3,268,094

 

 

36,967

 

4.49

 

Noninterest-earning assets

 

 

288,558

 

 

 

 

 

 

 

278,976

 

 

 

 

 

 

 

252,652

 

 

 

 

 

 

Total assets

 

$

3,939,198

 

 

 

 

 

 

$

3,848,811

 

 

 

 

 

 

$

3,520,746

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

616,008

 

 

1,202

 

0.77

 

$

564,040

 

 

902

 

0.63

 

$

484,153

 

 

319

 

0.26

 

NOW accounts

 

 

142,505

 

 

28

 

0.08

 

 

139,773

 

 

26

 

0.07

 

 

139,517

 

 

24

 

0.07

 

Money market accounts

 

 

867,066

 

 

3,109

 

1.42

 

 

879,694

 

 

3,417

 

1.54

 

 

725,604

 

 

2,233

 

1.22

 

Certificates of deposit

 

 

811,199

 

 

4,725

 

2.31

 

 

831,262

 

 

5,016

 

2.39

 

 

820,109

 

 

4,265

 

2.06

 

Brokered deposits

 

 

69,035

 

 

416

 

2.39

 

 

98,278

 

 

611

 

2.47

 

 

63,258

 

 

340

 

2.13

 

Total interest-bearing deposits

 

 

2,505,813

 

 

9,480

 

1.50

 

 

2,513,047

 

 

9,972

 

1.57

 

 

2,232,641

 

 

7,181

 

1.28

 

FHLB advances

 

 

249,102

 

 

1,385

 

2.21

 

 

213,578

 

 

1,249

 

2.32

 

 

438,023

 

 

2,400

 

2.17

 

Subordinated debentures

 

 

33,887

 

 

524

 

6.13

 

 

33,858

 

 

524

 

6.14

 

 

33,668

 

 

552

 

6.51

 

Total borrowings

 

 

282,989

 

 

1,909

 

2.68

 

 

247,436

 

 

1,773

 

2.84

 

 

471,691

 

 

2,952

 

2.48

 

Total interest-bearing liabilities

 

 

2,788,802

 

 

11,389

 

1.62

 

 

2,760,483

 

 

11,745

 

1.69

 

 

2,704,332

 

 

10,133

 

1.49

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

433,478

 

 

 

 

 

 

 

515,612

 

 

 

 

 

 

 

408,074

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

54,022

 

 

 

 

 

 

 

52,357

 

 

 

 

 

 

 

54,493

 

 

 

 

 

 

Total liabilities

 

 

3,276,302

 

 

 

 

 

 

 

3,328,452

 

 

 

 

 

 

 

3,166,899

 

 

 

 

 

 

Total equity

 

 

662,896

 

 

 

 

 

 

 

520,359

 

 

 

 

 

 

 

353,847

 

 

 

 

 

 

Total liabilities and equity

 

$

3,939,198

 

 

 

 

 

 

$

3,848,811

 

 

 

 

 

 

$

3,520,746

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

28,349

 

 

 

 

 

 

 

28,005

 

 

 

 

 

 

 

26,834

 

 

 

Tax equivalent interest rate spread (3)

 

 

 

 

 

 

 

2.70

%

 

 

 

 

 

 

2.73

%

 

 

 

 

 

 

3.00

%

Less: tax equivalent adjustment

 

 

 

 

 

15

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

44

 

 

 

Net interest income as reported

 

 

 

 

$

28,334

 

 

 

 

 

 

$

27,985

 

 

 

 

 

 

$

26,790

 

 

 

Net interest-earning assets (4)

 

$

861,838

 

 

 

 

 

 

$

809,352

 

 

 

 

 

 

$

563,762

 

 

 

 

 

 

Net interest margin (5)

 

 

 

 

 

 

 

3.08

%

 

 

 

 

 

 

3.11

%

 

 

 

 

 

 

3.25

%

Tax equivalent effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.01

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

3.08

%

 

 

 

 

 

 

3.11

%

 

 

 

 

 

 

3.26

%

Average interest-earning assets to average interest-bearing liabilities

 

 

130.90

%

 

 

 

 

 

 

129.32

%

 

 

 

 

 

 

120.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

2,939,291

 

$

9,480

 

 

 

$

3,028,659

 

$

9,972

 

 

 

$

2,640,715

 

$

7,181

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

1.28

%

 

 

 

 

 

 

1.31

%

 

 

 

 

 

 

1.08

%

Total funding liabilities, including demand deposits

 

$

3,222,280

 

$

11,389

 

 

 

$

3,276,095

 

$

11,745

 

 

 

$

3,112,406

 

$

10,133

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

1.40

%

 

 

 

 

 

 

1.42

%

 

 

 

 

 

 

1.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes loans held for sale, nonaccruing loan balances and interest received on such loans.

 

(2) Includes securities available for sale and securities held to maturity. Interest income from tax exempt securities is computed on a taxable equivalent basis using a tax rate of 21% for the quarters presented. The yield on investments before tax equivalent adjustments for the quarters presented were 2.64%, 2.73%, and 2.80%, respectively.

 

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

 

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

 

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

 

(6) Annualized.

 

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

December 31, 2019

 

December 31, 2018

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost

 

Balance

 

Interest

 

Cost

 

 

 

(dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

$

3,126,816

 

$

144,995

 

4.64

%

$

2,474,644

 

$

107,637

 

4.35

%

Investment securities (2)

 

 

245,021

 

 

6,923

 

2.83

 

 

238,580

 

 

6,660

 

2.79

 

Other interest-earning assets

 

 

102,810

 

 

2,970

 

2.89

 

 

50,912

 

 

1,591

 

3.12

 

Total interest-earning assets

 

 

3,474,647

 

 

154,888

 

4.46

 

 

2,764,136

 

 

115,888

 

4.19

 

Noninterest-earning assets

 

 

270,441

 

 

 

 

 

 

 

160,762

 

 

 

 

 

 

Total assets

 

$

3,745,088

 

 

 

 

 

 

$

2,924,898

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

548,746

 

 

3,032

 

0.55

 

$

375,436

 

 

755

 

0.20

 

NOW accounts

 

 

139,851

 

 

104

 

0.07

 

 

130,143

 

 

86

 

0.07

 

Money market accounts

 

 

853,743

 

 

12,670

 

1.48

 

 

704,876

 

 

6,762

 

0.96

 

Certificates of deposit

 

 

811,089

 

 

18,880

 

2.33

 

 

645,901

 

 

11,800

 

1.83

 

Brokered deposits

 

 

97,613

 

 

2,371

 

2.43

 

 

68,719

 

 

1,160

 

1.69

 

Total interest-bearing deposits

 

 

2,451,042

 

 

37,057

 

1.51

 

 

1,925,075

 

 

20,563

 

1.07

 

FHLB advances

 

 

286,156

 

 

6,588

 

2.30

 

 

291,782

 

 

5,474

 

1.88

 

Subordinated debentures

 

 

33,848

 

 

2,077

 

6.14

 

 

11,457

 

 

741

 

6.47

 

Total borrowings

 

 

320,004

 

 

8,665

 

2.71

 

 

303,239

 

 

6,215

 

2.05

 

Total interest-bearing liabilities

 

 

2,771,046

 

 

45,722

 

1.65

 

 

2,228,314

 

 

26,778

 

1.20

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

443,570

 

 

 

 

 

 

 

308,441

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

51,946

 

 

 

 

 

 

 

39,802

 

 

 

 

 

 

Total liabilities

 

 

3,266,562

 

 

 

 

 

 

 

2,576,557

 

 

 

 

 

 

Total equity

 

 

478,530

 

 

 

 

 

 

 

348,341

 

 

 

 

 

 

Total liabilities and equity

 

$

3,745,092

 

 

 

 

 

 

$

2,924,898

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

109,166

 

 

 

 

 

 

 

89,110

 

 

 

Tax equivalent interest rate spread (3)

 

 

 

 

 

 

 

2.81

%

 

 

 

 

 

 

2.99

%

Less: tax equivalent adjustment

 

 

 

 

 

104

 

 

 

 

 

 

 

180

 

 

 

Net interest income as reported

 

 

 

 

$

109,062

 

 

 

 

 

 

$

88,930

 

 

 

Net interest-earning assets (4)

 

$

703,601

 

 

 

 

 

 

$

535,822

 

 

 

 

 

 

Net interest margin (5)

 

 

 

 

 

 

 

3.14

%

 

 

 

 

 

 

3.22

%

Tax equivalent effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

3.14

%

 

 

 

 

 

 

3.22

%

Average interest-earning assets to average interest-bearing liabilities

 

 

125.39

%

 

 

 

 

 

 

124.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

2,894,612

 

$

37,057

 

 

 

$

2,233,516

 

$

20,563

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

1.28

%

 

 

 

 

 

 

0.92

%

Total funding liabilities, including demand deposits

 

$

3,214,616

 

$

45,722

 

 

 

$

2,536,755

 

$

26,778

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

1.42

%

 

 

 

 

 

 

1.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes loans held for sale, nonaccruing loan balances and interest received on such loans.

 

(2) Includes securities available for sale and securities held to maturity. Interest income from tax exempt securities is computed on a tax equivalent basis using a tax rate of 21%. The yield on investments before tax equivalent adjustments was 2.78% and 2.72% for the nine months ended September 30, 2019 and 2018, respectively.

 

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

 

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

 

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

 

 

 

 

HarborOne Bancorp, Inc.

Average Balances and Yield Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances - Trend - Quarters Ended

 

 

 

December 31, 2019

 

September 30, 2019

 

June 30, 2019

 

March 31, 2019

 

December 31, 2018

 

 

 

(in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

$

3,254,601

 

$

3,160,393

 

$

3,072,345

 

$

3,016,943

 

$

2,964,531

 

Investment securities (2)

 

 

236,828

 

 

224,379

 

 

259,151

 

 

260,211

 

 

253,631

 

Other interest-earning assets

 

 

159,211

 

 

185,063

 

 

26,758

 

 

37,971

 

 

49,932

 

Total interest-earning assets

 

 

3,650,640

 

 

3,569,835

 

 

3,358,254

 

 

3,315,125

 

 

3,268,094

 

Noninterest-earning assets

 

 

288,558

 

 

278,976

 

 

260,864

 

 

252,882

 

 

252,652

 

Total assets

 

$

3,939,198

 

$

3,848,811

 

$

3,619,118

 

$

3,568,007

 

$

3,520,746

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

616,008

 

$

564,040

 

$

528,360

 

$

484,963

 

$

484,153

 

NOW accounts

 

 

142,505

 

 

139,773

 

 

140,115

 

 

136,954

 

 

139,517

 

Money market accounts

 

 

867,066

 

 

879,694

 

 

872,653

 

 

794,477

 

 

725,604

 

Certificates of deposit

 

 

811,199

 

 

831,262

 

 

788,701

 

 

812,992

 

 

820,109

 

Brokered deposits

 

 

69,035

 

 

98,278

 

 

124,122

 

 

99,341

 

 

63,258

 

Total interest-bearing deposits

 

 

2,505,813

 

 

2,513,047

 

 

2,453,951

 

 

2,328,727

 

 

2,232,641

 

FHLB advances

 

 

249,102

 

 

213,578

 

 

291,835

 

 

392,483

 

 

438,023

 

Subordinated debentures

 

 

33,887

 

 

33,858

 

 

33,826

 

 

33,822

 

 

33,668

 

Total borrowings

 

 

282,989

 

 

247,436

 

 

325,661

 

 

426,305

 

 

471,691

 

Total interest-bearing liabilities

 

 

2,788,802

 

 

2,760,483

 

 

2,779,612

 

 

2,755,032

 

 

2,704,332

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

433,478

 

 

515,612

 

 

423,462

 

 

400,573

 

 

408,074

 

Other noninterest-bearing liabilities

 

 

54,022

 

 

52,357

 

 

49,163

 

 

52,219

 

 

54,493

 

Total liabilities

 

 

3,276,302

 

 

3,328,452

 

 

3,252,237

 

 

3,207,824

 

 

3,166,899

 

Total equity

 

 

662,896

 

 

520,359

 

 

366,881

 

 

360,183

 

 

353,847

 

Total liabilities and equity

 

$

3,939,198

 

$

3,848,811

 

$

3,619,118

 

$

3,568,007

 

$

3,520,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Yield Trend - Quarters Ended

 

 

 

December 31, 2019

 

September 30, 2019

 

June 30, 2019

 

March 31, 2019

 

December 31, 2018

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

 

4.55

%

 

4.64

%

 

4.70

%

 

4.67

%

 

4.63

%

Investment securities (2)

 

 

2.67

%

 

2.76

%

 

2.91

%

 

2.94

%

 

2.87

%

Other interest-earning assets

 

 

2.06

%

 

2.59

%

 

6.71

%

 

5.16

%

 

4.29

%

Total interest-earning assets

 

 

4.32

%

 

4.42

%

 

4.58

%

 

4.54

%

 

4.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

0.77

%

 

0.63

%

 

0.43

%

 

0.30

%

 

0.26

%

NOW accounts

 

 

0.08

%

 

0.07

%

 

0.07

%

 

0.07

%

 

0.07

%

Money market accounts

 

 

1.42

%

 

1.54

%

 

1.56

%

 

1.41

%

 

1.22

%

Certificates of deposit

 

 

2.31

%

 

2.39

%

 

2.35

%

 

2.25

%

 

2.06

%

Brokered deposits

 

 

2.39

%

 

2.47

%

 

2.46

%

 

2.38

%

 

2.13

%

Total interest-bearing deposits

 

 

1.50

%

 

1.57

%

 

1.53

%

 

1.44

%

 

1.28

%

FHLB advances

 

 

2.21

%

 

2.32

%

 

2.31

%

 

2.35

%

 

2.17

%

Subordinated debentures

 

 

6.13

%

 

6.14

%

 

6.21

%

 

6.05

%

 

6.51

%

Total borrowings

 

 

2.68

%

 

2.84

%

 

2.71

%

 

2.64

%

 

2.48

%

Total interest-bearing liabilities

 

 

1.62

%

 

1.69

%

 

1.67

%

 

1.62

%

 

1.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes loans held for sale, nonaccruing loan balances and interest received on such loans.

 

(2) Includes securities available for sale and securities held to maturity.

 

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

Performance Ratios (annualized):

 

2019

 

2019

 

2019

 

2019

 

2018

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA)

 

 

0.44

%

 

0.74

%

 

0.53

%

 

0.23

%

 

0.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (ROAE)

 

 

2.60

%

 

5.47

%

 

5.21

%

 

2.30

%

 

0.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

$

38,735

 

$

36,203

 

$

35,081

 

$

32,592

 

$

36,593

 

Less: Amortization of other intangible assets

 

 

448

 

 

617

 

 

639

 

 

640

 

 

640

 

Total adjusted noninterest expense

 

$

38,287

 

$

35,586

 

$

34,442

 

$

31,952

 

$

35,953

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

28,334

 

$

27,985

 

$

26,713

 

$

26,030

 

$

26,790

 

Total noninterest income

 

 

18,139

 

 

17,273

 

 

15,718

 

 

9,842

 

 

11,652

 

Total revenue

 

$

46,473

 

$

45,258

 

$

42,431

 

$

35,872

 

$

38,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (1)

 

 

82.39

%

 

78.63

%

 

81.17

%

 

89.07

%

 

93.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or for the Quarters Ended

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

Asset Quality

 

2019

 

2019

 

2019

 

2019

 

2018

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

31,040

 

$

27,947

 

$

17,165

 

$

19,266

 

$

18,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.76

%

 

0.71

%

 

0.46

%

 

0.53

%

 

0.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

 

0.76

%

 

0.74

%

 

0.73

%

 

0.71

%

 

0.69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge offs

 

$

235

 

$

106

 

$

771

 

$

230

 

$

287

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized net charge offs/average loans

 

 

0.03

%

 

0.01

%

 

0.10

%

 

0.03

%

 

0.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to nonperforming loans

 

 

79.35

%

 

83.58

%

 

133.61

%

 

116.41

%

 

116.62

%

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

Capital and Share Related

 

2019

 

2019

 

2019

 

2019

 

2018

 

(dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock outstanding (1)

 

 

58,418,021

 

 

58,429,584

 

 

58,483,027

 

 

58,459,493

 

 

58,465,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share (1)

 

$

11.40

 

$

11.29

 

$

6.35

 

$

6.22

 

$

6.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

665,794

 

$

659,554

 

$

371,118

 

$

363,448

 

$

357,574

 

Less: Goodwill

 

 

69,802

 

 

69,635

 

 

69,635

 

 

69,635

 

 

70,088

 

Less: Other intangible assets (2)

 

 

6,035

 

 

6,482

 

 

7,100

 

 

7,739

 

 

8,379

 

Tangible common equity

 

$

589,957

 

$

583,437

 

$

294,383

 

$

286,074

 

$

279,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (1) (3)

 

$

10.10

 

$

9.99

 

$

5.03

 

$

4.89

 

$

4.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,058,921

 

$

3,949,020

 

$

3,737,424

 

$

3,655,996

 

$

3,653,121

 

Less: Goodwill

 

 

69,802

 

 

69,635

 

 

69,635

 

 

69,635

 

 

70,088

 

Less: Other intangible assets (2)

 

 

6,035

 

 

6,482

 

 

7,100

 

 

7,739

 

 

8,379

 

Tangible assets

 

$

3,983,084

 

$

3,872,903

 

$

3,660,689

 

$

3,578,622

 

$

3,574,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity / tangible assets (4)

 

 

14.81

%

 

15.06

%

 

8.04

%

 

7.99

%

 

7.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Share amounts related to periods prior to the date of the completion of the stock offering (August 14, 2019) have been restated to give retroactive recognition to the exchange ratio applied in the stock offering (1.795431-to-one)

(2) Other intangible assets includes core deposit intangible and noncompete intangible.

(3) This non-GAAP ratio is total stockholders' equity less goodwill and intangible assets divided by common stock outstanding.

(4) This non-GAAP ratio is total stockholders' equity less goodwill and intangible assets to total assets less goodwill and intangible assets.

 

Contacts

Linda Simmons, SVP, CFO 508 895-1379

Release Summary

HarborOne Bancorp, Inc. Announces 2019 Fourth Quarter Earnings

Contacts

Linda Simmons, SVP, CFO 508 895-1379