HarborOne Bancorp, Inc. Announces 2020 Second 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 $10.6 million, or $0.19 per basic and diluted share, for the second quarter of 2020, compared to $4.7 million, or $0.09 per basic and diluted share, for the preceding quarter and $4.8 million, or $0.08 per basic and diluted share, for the same period last year. For the six months ended June 30, 2020 net income was $15.3 million, or $0.28 per basic and diluted share, compared to $6.8 million, or $0.12 per basic and diluted share, for the same period last year. The three and six months ended June 30, 2020 reflect charges of $5.7 million and $7.2 million, respectively, to the provision for loan losses and $1.4 million and $1.7 million, respectively to non-interest expense related to the COVID-19 pandemic. Additionally, in the second quarter, we waived $1.0 million in deposit account fees in response to customer needs related to the COVID-19 pandemic.

Selected Second Quarter Financial Highlights:

  • Net interest income increased $2.7 million, or 10.3%, quarter over quarter and the net interest margin increased 9 basis points.
  • The annualized quarterly return on average assets was 0.99% and the annualized quarterly return on average equity was 6.22%.
  • Provision for loan losses of $10.0 million, including $5.7 million in additional reserves for the impact of the COVID-19 pandemic.
  • Record residential real estate mortgage closings for the quarter of $856.5 million, resulting in an increase in mortgage banking income of $23.4 million to $33.9 million.
  • Commercial loan growth excluding Paycheck Protection Program loans amounted to $129.7 million.
  • Total deposits amounted to $3.3 billion, up $287.5 million, or 10.0%, with marked improvement in mix and cost of funds.
  • Announced the initiation of a $0.03 per share cash dividend.

“The strength of our second quarter performance is a testament to our ability to execute in the face of extreme change. We’ve kept our focus on customers and how we support them, while keeping staff safe and healthy. Our customers are telling us how they want to bank moving forward, and we will continue to listen, learn, and transform how we operate to meet those needs.” said James Blake, CEO. “Our digital banking enrollment grew 8% and mobile deposit volume grew 33% as compared to the first quarter, as we continue to focus on helping customers get the most out of our digital banking tools. That said, as a community bank we remain committed to providing the in-person service that some situations demand, and we will continue to invest in the infrastructure that will enhance alternative channels,” added Joseph F. Casey, President and COO.

Net Interest Income
The Company’s net interest and dividend income was $29.4 million for the quarter ended June 30, 2020, up $2.7 million, or 10.3%, from $26.7 million for the quarter ended March 31, 2020 and up $2.7 million, or 10.2%, from $26.7 million for the quarter ended June 30, 2019. The tax-equivalent interest rate spread and net interest margin were 2.75% and 3.00%, respectively, for the quarter ended June 30, 2020 compared to 2.58% and 2.91%, respectively, for the quarter ended March 31, 2020, and 2.91% and 3.19%, respectively, for the quarter ended June 30, 2019. Margin pressure continues to be a concern as the economic impact of the COVID-19 pandemic is realized. It is expected that the interest rate and economic environments will continue to be volatile.

The components of the quarter over quarter increase in net interest and dividend income reflected a decrease of $3.3 million, or 31.5%, in total interest expense, partially offset by a $548,000, or 1.5%, decrease in interest and dividend income. Interest on loans in the second quarter included $1.3 million in accretion income from the fair value discount on loans acquired from Coastway Bancorp, Inc. (“Coastway”) and $18,000 in prepayment penalties on commercial loans. Accretion income and prepayment penalties in the previous quarter were $614,000 and $69,000, respectively. The yield on loans was 4.06% for the quarter ended June 30, 2020, down from 4.33% for the quarter ended March 31, 2020. The increase in accretion income reflects increased loan payoffs due to low mortgage loan rates. The decrease in interest and dividend income primarily reflected a decrease in interest rates, as adjustable rate loans repriced, resulting in a 51 basis point decrease in the yield on commercial loans. The yield on residential real estate loans was flat, supported by the recognition of fair value marks on loan payoffs. The decrease in interest expense primarily reflected a decrease in interest rates, resulting in a 48 basis point decrease in the cost of interest-bearing deposits and a shift in the deposit mix. The average balance of certificates of deposit accounts decreased quarter over quarter by $64.1 million, while the savings account average balance increased $156.5 million from the preceding quarter. Average FHLB advances increased $17.4 million and the cost of those funds decreased 78 basis points, resulting in a decrease of $408,000 in interest expense on FHLB borrowings. During the second quarter an interest rate swap agreement with a notional amount of $100.0 million, designated as a cash flow hedge of certain LIBOR-based debt, provided a $149,000 gain that was offset against FHLB interest expense.

The increase in net interest and dividend income from the prior year quarter reflected a decrease of $4.4 million, or 38.0%, in total interest expense, partially offset by a $1.7 million, or 4.3%, decrease in total interest and dividend income. The decreases reflect offsetting rate and volume changes in both interest-bearing assets and liabilities. The cost of interest-bearing liabilities decreased 69 basis points while the average balance increased $167.5 million. The yield on interest earning assets decreased 85 basis points while the average balance increased $592.8 million

Noninterest Income
Noninterest income increased $19.8 million, or 104.8%, to $38.6 million for the quarter ended June 30, 2020 from $18.9 million for the quarter ended March 31, 2020. Record breaking mortgage demand spurred by low mortgage rates continued to provide higher than normal mortgage origination activity and other mortgage banking income for HarborOne Mortgage, LLC (“HarborOne Mortgage”). The $856.5 million in mortgage loan closings resulted in a gain on loan sales of $30.8 million for the quarter ended June 30, 2020 as compared to 12.3 million for the preceding quarter. Other mortgage banking income increased $1.5 million, primarily due to increased origination fees. Residential mortgage loan payoffs resulted in accelerated amortization of mortgage servicing rights in the amount of $1.1 million for the three months ended June 30, 2020 and $576,000 for the three months ended March 31, 2020. The 10-year Treasury Constant Maturity rate decreased 4 basis points in the second quarter of 2020 and 126 basis points from year end 2019 and negatively impacted the fair value of the mortgage servicing rights, resulting in a decrease in fair value of $3.8 million in the first quarter of 2020. The 2020 results for HarborOne Mortgage are uncertain in light of the COVID-19 pandemic. The low mortgage interest rate environment spurred increased purchase and refinance activity in the first half of the year, continuing into the third quarter of 2020 with a locked residential mortgage pipeline at June 30, 2020 of $497.7 million; however, economic uncertainty and increased unemployment rates may have a negative impact on mortgage loan originations in the second half of 2020.

Noninterest income increased $22.9 million, or 145.8%, as compared to the quarter ended June 30, 2019, primarily due to a $25.2 million, or 291.2%, increase in mortgage banking income. Mortgage banking income increased compared to the same period last year, due to the increase in mortgage origination volume. Mortgage originations increased primarily as a result of lower residential mortgage interest rates and increased refinancing volume. Bank-owned life insurance income increased $301,000 due to a $41.4 million increase in bank-owned life insurance from June 30, 2019 to June 30, 2020.

Noninterest Expense
Noninterest expenses were $43.8 million for the quarter ended June 30, 2020, an increase of $8.5 million, or 23.9%, from the quarter ended March 31, 2020, primarily driven by a $6.3 million increase in compensation and benefits, a $1.3 million increase in loan expense, and a $719,000 increase in other expenses. The increases were partially offset by a decrease of $411,000 in occupancy and equipment expenses. The increase in compensation and benefits and loan expenses primarily reflect increases consistent with the volume increase in residential mortgage originations. The increase in other expenses reflects an increase in COVID-19 pandemic-related expenses, primarily for compensation to branch personnel and sick time. For the three months ended June 30, 2020, the expenses amounted to $1.4 million and compared to $329,000 in the preceding quarter. We anticipate additional COVID-19 pandemic expenses throughout 2020 for personnel, cleaning and other initiatives to support our employees and customers.

Total noninterest expenses increased $8.8 million, or 25.0%, from the quarter ended June 30, 2019. Compensation and benefits increased $6.9 million, loan expenses increased $1.4 million and other expenses increased $921,000. The increases were partially offset by a $310,000 decrease in deposit insurance. The increase in compensation and benefits and loan expenses primarily reflected the increased volume of residential real estate mortgage originations. The increase in other expenses reflects the COVID-19 pandemic-related expenses noted above. The decrease in deposit insurance expense reflects the reduction in assessment rate due to improved capital ratios as a result of the second step conversion.

Income Tax Provision
The effective tax rate was 25.8% for the quarter ended June 30, 2020, compared to 26.5% for the quarter ended March 31, 2020 and 14.6% for the quarter ended June 30, 2019. The effective tax rate for the quarter ended June 30, 2019 included a 2013 federal tax refund of $603,000 and a 2013 Massachusetts state tax refund of $211,000 recognized in the quarter.

Provision for Loan Losses and Asset Quality
The Company recorded a provision for loan losses of $10.0 million for the quarter ended June 30, 2020, compared to $3.7 million for the quarter ended March 31, 2020 and $1.8 million for the quarter ended June 30, 2019. Allowance for loan losses was $36.1 million, or 1.04%, of total loans at June 30, 2020, compared to $26.4 million, or 0.83%, of total loans at March 31, 2020 and $22.3 million, or 0.73%, of total loans at June 30, 2019. 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.

The provision for loan losses for the quarter ended June 30, 2020 included adjustments for our quarterly analysis of our historical and peer loss experience rates, commercial real estate loan growth, and a $5.7 million provision directly related to the estimate of inherent losses resulting from the impact of the COVID-19 pandemic. The provision for loan losses for the quarter ended March 31, 2020 included adjustments for our quarterly analysis of our historical and peer loss experience rates, commercial real estate loan growth, an additional provision to cover a $1.2 million commercial real estate loan charge-off unrelated to the COVID-19 pandemic, and a $1.5 million provision directly related to the initial estimate of inherent losses resulting from the impact of the COVID-19 pandemic. The provision for loan losses for the quarter ended June 30, 2019 primarily reflected commercial real estate loan growth.

In estimating the provision for the COVID-19 pandemic, management considered economic factors, including unemployment rates and the interest rate environment, the volume and dollar amount of requests for payment deferrals, the loan risk profile of each loan type, and if the loans were purchased. The additional provisions provided to each category for the three months ended June 30, 2020 ranged from 14 to 26 basis points and amounted to allocations of $1.6 million to the residential real estate portfolio, $3.2 million to the commercial portfolio and $935,000 to the consumer portfolio.

Management continues to evaluate our loan portfolio, particularly the commercial loan portfolio, in light of the expected decrease in economic activity, the mitigating effects of government stimulus, and loan modification efforts designed to limit the long term impact of the COVID-19 pandemic. Our commercial loan portfolio is diversified across many sectors and is largely secured by commercial real estate loans, which make up 66.9% of the total commercial loan portfolio. Initial assessments of the impact of the COVID-19 pandemic on the commercial loan portfolio have been focused on sectors that have experienced a direct impact. Management has identified six sectors as the most susceptible to immediate increased credit risk: retail, office space, hotels, health and social services, restaurants, and recreation. The total loan portfolio of the commercial sectors identified as at risk is $930.2 million, which represents 47.2% of the commercial loan portfolio. The at-risk sectors include $682.3 million in commercial real estate loans, $191.0 million in commercial and industrial loans, and $56.9 million in commercial construction loans.

As of June 30, 2020, the retail sector was $250.6 million, or 12.7% of total commercial loans and incudes $207.2 million in commercial real estate loans, $33.4 million in commercial and industrial loans and $10.0 million in commercial construction loans. Paycheck Protection Program loans included in the sector totaled $7.1 million, and we have provided deferrals for loans in this sector with outstanding principal balances of $33.4 million. Excluding the Paycheck Protection Program loans, we originated $22.2 million loans during the second quarter that are within the retail sector. The commercial real estate loans includes $114.6 million in loans secured by retail space anchored by a diverse mix of national chains and grocery stores.

In the second quarter, we identified the office space sector as an additional at-risk sector, as the pandemic dampened demand for office space and may further impact it as work-from-home arrangements become more common-place. As of June 30, 2020, the office sector was $220.6 million, or 11.2% of total commercial loans, and included $198.0 million in commercial real estate loans, $15.9 million in commercial and industrial loans and $6.7 million in commercial construction loans. We provided deferrals for loans in the sector with outstanding principal balances of $14.2 million; however, no Paycheck Protection Program loans were originated in this sector. We originated $14.9 million loans during the second quarter that are within the office sector.

As of June 30, 2020, the hotel sector was $191.4 million, or 9.7% of total commercial loans, and included $167.2 million in commercial real estate loans, $2.7 million in commercial and industrial loans and $21.4 million in commercial construction loans. Paycheck Protection Program loans included in the sector totaled $569,000, and we have provided deferrals for loans in this sector with outstanding principal balances of $118.4 million. In the first quarter of 2020, we charged off $1.2 million on a loan acquired from Coastway, secured by a hotel property whose credit deterioration was unrelated to the COVID-19 pandemic. That credit is on nonaccrual and amounted to $3.1 million at June 30, 2020.

The health and social services sector amounted to $178.1 million, or 9.0% of total commercial loans, as of June 30, 2020 and included $84.5 million in commercial real estate loans and $93.7 million in commercial and industrial loans. Paycheck Protection Program loans included in the sector totaled $42.5 million, and we have provided deferrals for loans in this sector with outstanding principal balances of $12.8 million. Excluding the Paycheck Protection Program loans, we originated $50.6 million loans during the second quarter that are within this sector.

As of June 30, 2020, the restaurant sector amounted to $57.1 million, or 2.9% of total commercial loans, including $9.4 million in Paycheck Protection Program loans. We provided deferrals for loans in this sector with outstanding principal balances of $8.7 million. The recreation sector amounted to $32.4 million, or 1.6% of total commercial loans, including $2.8 million in Paycheck Protection Program loans. We provided deferrals for loans in this sector with outstanding principal balances of $13.8 million. Included in the recreation sector is a $9.0 million nonaccrual loan secured by an ice-skating rink for which credit deterioration began prior to the COVID-19 pandemic.

We provided access to the Paycheck Protection Program to both our existing customers and new customers, to ensure small businesses in our communities have access to this important lifeline for their businesses. As of June 30, 2020, we originated 1,071 Paycheck Protection Program loans totaling $152.6 million. As of June 30, 2020, there was $4.6 million in deferred processing fee income that will be recognized over the life of the loans. The average authorized loan size is $150,000 and the aggregate number of jobs positively impacted is approximately 15,000.

We are also working with commercial loan customers that may need payment deferrals or other accommodations to keep their loans out of default through the COVID-19 pandemic. As of June 30, 2020, we have 157 payment deferrals on commercial loans with a total principal balance of $262.4 million, or 13.3%, of total commercial loans, of which $201.3 million are loans included in an at-risk sector. As of June 30, 2020, there were four borrowers requesting an additional three-month deferral. Two borrowers with three loans are included in the hotel sector with an outstanding principal balance of $15.7 million, one borrower with two loans is included in the recreation sector with an outstanding principal balance of $7.0 million and one borrower with one loan is included in the retail sector with an outstanding principal balance of $542,000. The majority of commercial loan deferrals are scheduled to end in the third quarter unless additional requests are received and granted.

The residential loan and consumer loan portfolios have not experienced significant credit quality deterioration as of June 30, 2020; however, we anticipate that the COVID-19 pandemic will result in increases in delinquencies, charge-offs and loan modifications in these portfolios through the remainder of the year. As of June 30, 2020, we had 172 payment deferrals on residential mortgage loans with a total principal balance of $52.7 million, or 4.6% of total residential loans, and 664 payment deferrals on consumer loans with a total principal balance of $15.9 million, or 4.5%, of total consumer loans. As of June 30, 2020, we had processed a second three-month extension for 7 residential real estate loans with principal balances of $2.7 million and received extension requests for an additional 12 loans with a principal balance of $4.7 million. Requests for additional extensions on consumer loans were not significant as of June 30, 2020.

Net charge-offs totaled $286,000 for the quarter ended June 30, 2020, or 0.03% of average loans outstanding on an annualized basis, compared to $1.4 million, or 0.18% of average loans outstanding on an annualized basis, for the quarter ended March 31, 2020 and $771,000, or 0.10% of average loans outstanding on an annualized basis, for the quarter ended June 30, 2019.

Total nonperforming assets were $38.6 million at June 30, 2020 compared to $32.1 million at March 31, 2020 and $17.2 million at June 30, 2019. Nonperforming assets as a percentage of total assets were 0.86% at June 30, 2020, 0.78% at March 31, 2020 and 0.46% at June 30, 2019. The increase from the preceding quarter is primarily due to 3 loans to one commercial loan borrower that amounted to $5.8 million. The increase in nonperforming assets from the prior year quarter was primarily in the commercial loan portfolio.

Balance Sheet
Total assets increased $363.7 million, or 8.9%, to $4.46 billion at June 30, 2020 from $4.10 billion at March 31, 2020. The increase primarily reflects an increase of $280.4 million in net loans and $40.6 million in loans held for sale.

Net loans increased $280.4 million, or 8.9%, to $3.44 billion at June 30, 2020 from $3.16 billion at March 31, 2020. The net increase in loans for the three months ended June 30, 2020 was primarily due to increases in commercial real estate loans of $105.5 million, commercial and industrial loans of $138.6 million, $33.6 million of commercial construction loans and $49.2 million in residential real estate loans, partially offset by a decrease in consumer loans of $36.7 million. The increase in commercial and industrial loans primarily reflects loans originated as part of the Paycheck Protection Program. Loans held for sale increased $40.6 million, or 34.3%, to $158.9 million at June 30, 2020 from $118.3 million at March 31, 2020.

Total deposits increased $287.5 million, or 9.5%, to $3.31 billion at June 30, 2020 from $3.02 billion at March 31, 2020. Compared to the prior quarter, non-certificate accounts increased $381.8 million and term CDs decreased $94.4 million. FHLB borrowings increased $56.0 million, or 19.6%, to $341.1 million at June 30, 2020 from $285.1 million at March 31, 2020.

Total stockholders’ equity was $684.4 million at June 30, 2020 compared to $675.1 million at March 31, 2020 and $371.1 million at June 30, 2019. The tangible common equity to tangible assets ratio was 13.88% at June 30, 2020, 14.90% at March 31, 2020 and 8.04% at June 30, 2019. The increase in stockholders’ equity and ratios from June 30, 2019 to June 30, 2020 primarily reflects the results of the Company’s second step offering, net of the additional ESOP funding. At June 30, 2020, the Company and the Bank had strong capital positions and exceeded all regulatory capital requirements.

About HarborOne Bancorp, Inc.
HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered savings bank. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 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, New Jersey and Florida and is 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, the negative impacts and disruptions of the COVID-19 pandemic and the measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the length and extent of economic contraction as a result of the COVID-19 pandemic; the effects of continued deterioration in employment levels, general business and economic conditions on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in customer behavior; turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; acquisitions may not produce results at levels or within time frames originally anticipated; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne Bancorp, Inc.’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

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

HarborOne Bancorp, Inc.
Consolidated Balance Sheet Trend
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

(in thousands)

 

2020

 

2020

 

2019

 

2019

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

30,355

 

$

35,264

 

$

24,464

 

$

27,758

 

$

27,205

Short-term investments

 

 

218,617

 

 

200,156

 

 

187,152

 

 

210,873

 

 

51,502

Total cash and cash equivalents

 

 

248,972

 

 

235,420

 

 

211,616

 

 

238,631

 

 

78,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

262,710

 

 

249,789

 

 

239,473

 

 

204,133

 

 

202,457

Securities held to maturity, at amortized cost

 

 

 

 

 

 

26,372

 

 

27,099

 

 

34,752

Federal Home Loan Bank stock, at cost

 

 

15,786

 

 

13,530

 

 

17,121

 

 

13,466

 

 

14,876

Asset held for sale

 

 

8,536

 

 

8,536

 

 

8,536

 

 

 

 

Loans held for sale, at fair value

 

 

158,898

 

 

118,316

 

 

110,552

 

 

102,121

 

 

84,651

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

1,318,051

 

 

1,212,534

 

 

1,169,923

 

 

1,085,743

 

 

1,025,720

Commercial construction

 

 

194,549

 

 

160,993

 

 

153,907

 

 

160,549

 

 

157,130

Commercial and industrial

 

 

456,192

 

 

317,559

 

 

306,282

 

 

298,652

 

 

301,056

Total commercial loans

 

 

1,968,792

 

 

1,691,086

 

 

1,630,112

 

 

1,544,944

 

 

1,483,906

Residential real estate

 

 

1,150,700

 

 

1,101,540

 

 

1,105,565

 

 

1,118,439

 

 

1,125,381

Consumer

 

 

354,530

 

 

391,244

 

 

435,881

 

 

448,881

 

 

456,654

Loans

 

 

3,474,022

 

 

3,183,870

 

 

3,171,558

 

 

3,112,264

 

 

3,065,941

Less: Allowance for loan losses

 

 

(36,107)

 

 

(26,389)

 

 

(24,060)

 

 

(23,044)

 

 

(22,261)

Net loans

 

 

3,437,915

 

 

3,157,481

 

 

3,147,498

 

 

3,089,220

 

 

3,043,680

Mortgage servicing rights, at fair value

 

 

16,127

 

 

13,207

 

 

17,150

 

 

16,067

 

 

18,156

Goodwill

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,635

 

 

69,635

Other intangible assets

 

 

5,141

 

 

5,588

 

 

6,035

 

 

6,482

 

 

7,100

Other assets

 

 

241,019

 

 

229,537

 

 

204,766

 

 

182,166

 

 

183,410

Total assets

 

$

4,464,906

 

$

4,101,206

 

$

4,058,921

 

$

3,949,020

 

$

3,737,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposit accounts

 

$

642,971

 

$

439,793

 

$

406,403

 

$

446,433

 

$

447,448

NOW accounts

 

 

199,400

 

 

174,971

 

 

165,877

 

 

143,547

 

 

147,058

Regular savings and club accounts

 

 

876,753

 

 

744,564

 

 

626,685

 

 

585,327

 

 

544,401

Money market deposit accounts

 

 

831,653

 

 

809,622

 

 

856,830

 

 

875,804

 

 

885,775

Term certificate accounts

 

 

757,897

 

 

852,274

 

 

887,078

 

 

873,397

 

 

944,923

Total deposits

 

 

3,308,674

 

 

3,021,224

 

 

2,942,873

 

 

2,924,508

 

 

2,969,605

Short-term borrowed funds

 

 

200,000

 

 

104,000

 

 

183,000

 

 

60,000

 

 

98,000

Long-term borrowed funds

 

 

141,114

 

 

181,123

 

 

171,132

 

 

211,140

 

 

211,149

Subordinated debt

 

 

33,970

 

 

33,938

 

 

33,907

 

 

33,875

 

 

33,843

Other liabilities and accrued expenses

 

 

96,693

 

 

85,782

 

 

62,215

 

 

59,943

 

 

53,709

Total liabilities

 

 

3,780,451

 

 

3,426,067

 

 

3,393,127

 

 

3,289,466

 

 

3,366,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

584

 

 

584

 

 

584

 

 

584

 

 

327

Additional paid-in capital

 

 

462,881

 

 

461,616

 

 

460,232

 

 

458,599

 

 

154,730

Unearned compensation - ESOP

 

 

(32,218)

 

 

(32,678)

 

 

(33,137)

 

 

(33,838)

 

 

(9,793)

Retained earnings

 

 

251,032

 

 

242,080

 

 

237,356

 

 

233,049

 

 

225,936

Treasury stock

 

 

(721)

 

 

(721)

 

 

(721)

 

 

(721)

 

 

(1,548)

Accumulated other comprehensive income

 

 

2,897

 

 

4,258

 

 

1,480

 

 

1,881

 

 

1,466

Total stockholders' equity

 

 

684,455

 

 

675,139

 

 

665,794

 

 

659,554

 

 

371,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

4,464,906

 

$

4,101,206

 

$

4,058,921

 

$

3,949,020

 

$

3,737,424

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)

 

2020

 

2020

 

2019

 

2019

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

33,970

 

$

34,025

 

$

36,195

 

$

36,230

 

$

35,438

Interest on loans held for sale

 

 

988

 

 

577

 

 

1,120

 

 

747

 

 

542

Interest on securities

 

 

1,424

 

 

1,808

 

 

1,580

 

 

1,542

 

 

1,850

Other interest and dividend income

 

 

239

 

 

759

 

 

828

 

 

1,211

 

 

448

Total interest and dividend income

 

 

36,621

 

 

37,169

 

 

39,723

 

 

39,730

 

 

38,278

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

5,805

 

 

8,693

 

 

9,480

 

 

9,972

 

 

9,362

Interest on FHLB borrowings

 

 

845

 

 

1,253

 

 

1,385

 

 

1,249

 

 

1,679

Interest on subordinated debentures

 

 

524

 

 

523

 

 

524

 

 

524

 

 

524

Total interest expense

 

 

7,174

 

 

10,469

 

 

11,389

 

 

11,745

 

 

11,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

29,447

 

 

26,700

 

 

28,334

 

 

27,985

 

 

26,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

10,004

 

 

3,749

 

 

1,251

 

 

889

 

 

1,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for loan losses

 

 

19,443

 

 

22,951

 

 

27,083

 

 

27,096

 

 

24,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

30,862

 

 

12,278

 

 

9,471

 

 

11,015

 

 

8,429

Changes in mortgage servicing rights fair value

 

 

(1,111)

 

 

(4,387)

 

 

625

 

 

(2,474)

 

 

(2,241)

Other

 

 

4,110

 

 

2,571

 

 

2,894

 

 

2,964

 

 

2,467

Total mortgage banking income

 

 

33,861

 

 

10,462

 

 

12,990

 

 

11,505

 

 

8,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

2,969

 

 

3,931

 

 

4,274

 

 

4,186

 

 

4,056

Income on retirement plan annuities

 

 

103

 

 

101

 

 

102

 

 

104

 

 

100

Loss on asset held for sale

 

 

 

 

 

 

(482)

 

 

 

 

Gain on sale and call of securities, net

 

 

8

 

 

2,525

 

 

 

 

77

 

 

1,267

Bank-owned life insurance income

 

 

554

 

 

551

 

 

343

 

 

256

 

 

253

Other income

 

 

1,143

 

 

1,296

 

 

912

 

 

1,145

 

 

1,387

Total noninterest income

 

 

38,638

 

 

18,866

 

 

18,139

 

 

17,273

 

 

15,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

27,469

 

 

21,185

 

 

23,719

 

 

23,238

 

 

20,585

Occupancy and equipment

 

 

4,152

 

 

4,563

 

 

4,366

 

 

4,171

 

 

4,411

Data processing

 

 

2,277

 

 

2,180

 

 

2,251

 

 

2,196

 

 

2,199

Loan expense

 

 

2,763

 

 

1,481

 

 

1,893

 

 

1,704

 

 

1,334

Marketing

 

 

1,057

 

 

876

 

 

771

 

 

799

 

 

1,177

Professional fees

 

 

1,518

 

 

1,228

 

 

2,470

 

 

889

 

 

1,384

Deposit insurance

 

 

279

 

 

271

 

 

5

 

 

(225)

 

 

589

Other expenses

 

 

4,323

 

 

3,604

 

 

3,260

 

 

3,431

 

 

3,402

Total noninterest expenses

 

 

43,838

 

 

35,388

 

 

38,735

 

 

36,203

 

 

35,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

14,243

 

 

6,429

 

 

6,487

 

 

8,166

 

 

5,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

3,668

 

 

1,705

 

 

2,180

 

 

1,053

 

 

819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

10,575

 

$

4,724

 

$

4,307

 

$

7,113

 

$

4,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.19

 

$

0.09

 

$

0.08

 

$

0.13

 

$

0.08

Diluted

 

$

0.19

 

$

0.09

 

$

0.08

 

$

0.13

 

$

0.08

Weighted average shares outstanding (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

54,450,146

 

 

54,392,465

 

 

54,208,629

 

 

55,638,734

 

 

56,704,297

Diluted

 

 

54,450,146

 

 

54,392,465

 

 

54,209,182

 

 

55,638,734

 

 

56,704,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 Six Months Ended June 30,

 

 

 

 

 

(dollars in thousands, except share data)

 

2020

 

2019

 

$ Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

67,995

 

$

69,803

 

$

(1,808)

 

(2.6)

%

Interest on loans held for sale

 

 

1,565

 

 

900

 

 

665

 

73.9

 

Interest on securities

 

 

3,232

 

 

3,697

 

 

(465)

 

(12.6)

 

Other interest and dividend income

 

 

998

 

 

931

 

 

67

 

7.2

 

Total interest and dividend income

 

 

73,790

 

 

75,331

 

 

(1,541)

 

(2.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

14,498

 

 

17,605

 

 

(3,107)

 

(17.6)

 

Interest on FHLB borrowings

 

 

2,098

 

 

3,954

 

 

(1,856)

 

(46.9)

 

Interest on subordinated debentures

 

 

1,047

 

 

1,029

 

 

18

 

1.7

 

Total interest expense

 

 

17,643

 

 

22,588

 

 

(4,945)

 

(21.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

56,147

 

 

52,743

 

 

3,404

 

6.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

13,753

 

 

2,607

 

 

11,146

 

427.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for loan losses

 

 

42,394

 

 

50,136

 

 

(7,742)

 

(15.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

43,140

 

 

13,072

 

 

30,068

 

230.0

 

Changes in mortgage servicing rights fair value

 

 

(5,498)

 

 

(4,392)

 

 

(1,106)

 

(25.2)

 

Other

 

 

6,681

 

 

4,477

 

 

2,204

 

49.2

 

Total mortgage banking income

 

 

44,323

 

 

13,157

 

 

31,166

 

236.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

6,900

 

 

7,834

 

 

(934)

 

(11.9)

 

Income on retirement plan annuities

 

 

204

 

 

196

 

 

8

 

4.1

 

Gain on sale and call of securities, net

 

 

2,533

 

 

1,267

 

 

1,266

 

100.0

 

Bank-owned life insurance income

 

 

1,105

 

 

506

 

 

599

 

118.4

 

Other income

 

 

2,439

 

 

2,600

 

 

(161)

 

(6.2)

 

Total noninterest income

 

 

57,504

 

 

25,560

 

 

31,944

 

125.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

48,654

 

 

39,830

 

 

8,824

 

22.2

 

Occupancy and equipment

 

 

8,715

 

 

8,859

 

 

(144)

 

(1.6)

 

Data processing

 

 

4,457

 

 

4,245

 

 

212

 

5.0

 

Loan expense

 

 

4,244

 

 

2,605

 

 

1,639

 

62.9

 

Marketing

 

 

1,933

 

 

2,135

 

 

(202)

 

(9.5)

 

Professional fees

 

 

2,746

 

 

2,330

 

 

416

 

17.9

 

Deposit insurance

 

 

550

 

 

1,255

 

 

(705)

 

(56.2)

 

Other expenses

 

 

7,927

 

 

6,414

 

 

1,513

 

23.6

 

Total noninterest expenses

 

 

79,226

 

 

67,673

 

 

11,553

 

17.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

20,672

 

 

8,023

 

 

12,649

 

157.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

5,373

 

 

1,175

 

 

4,198

 

357.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

15,299

 

$

6,848

 

$

8,451

 

123.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (1):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

$

0.12

 

 

 

 

 

 

Diluted

 

$

0.28

 

$

0.12

 

 

 

 

 

 

Weighted average shares outstanding (1):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

54,421,306

 

 

56,685,741

 

 

 

 

 

 

Diluted

 

 

54,421,306

 

 

56,685,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

June 30, 2020

 

March 31, 2020

 

June 30, 2019

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost (6)

 

Balance

 

Interest

 

Cost (6)

 

Balance

 

Interest

 

Cost (6)

 

 

 

(dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

240,025

 

$

1,430

 

2.40

%

$

275,632

 

$

1,822

 

2.66

%

$

259,151

 

$

1,880

 

2.91

%

Other interest-earning assets

 

 

222,840

 

 

239

 

0.43

 

 

186,619

 

 

759

 

1.64

 

 

26,758

 

 

448

 

6.71

 

Loans held for sale

 

 

119,047

 

 

988

 

3.34

 

 

61,548

 

 

577

 

3.77

 

 

48,158

 

 

542

 

4.52

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)

 

 

1,872,349

 

 

18,196

 

3.91

 

 

1,647,667

 

 

18,123

 

4.42

 

 

1,445,652

 

 

18,580

 

5.16

 

Residential real estate loans (2)

 

 

1,123,896

 

 

11,811

 

4.23

 

 

1,100,177

 

 

11,544

 

4.22

 

 

1,118,761

 

 

12,265

 

4.40

 

Consumer loans (2)

 

 

372,929

 

 

3,963

 

4.27

 

 

415,317

 

 

4,358

 

4.22

 

 

459,774

 

 

4,593

 

4.01

 

Total loans

 

 

3,369,174

 

 

33,970

 

4.06

 

 

3,163,161

 

 

34,025

 

4.33

 

 

3,024,187

 

 

35,438

 

4.70

 

Total interest-earning assets

 

 

3,951,086

 

 

36,627

 

3.73

 

 

3,686,960

 

 

37,183

 

4.06

 

 

3,358,254

 

 

38,308

 

4.58

 

Noninterest-earning assets

 

 

334,452

 

 

 

 

 

 

 

314,193

 

 

 

 

 

 

 

260,864

 

 

 

 

 

 

Total assets

 

$

4,285,538

 

 

 

 

 

 

$

4,001,153

 

 

 

 

 

 

$

3,619,118

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

842,560

 

 

834

 

0.40

 

$

686,031

 

 

1,298

 

0.76

 

$

528,360

 

 

564

 

0.43

 

NOW accounts

 

 

187,560

 

 

33

 

0.07

 

 

158,702

 

 

31

 

0.08

 

 

140,115

 

 

25

 

0.07

 

Money market accounts

 

 

826,939

 

 

1,207

 

0.59

 

 

835,154

 

 

2,583

 

1.24

 

 

872,653

 

 

3,384

 

1.56

 

Certificates of deposit

 

 

730,756

 

 

3,472

 

1.91

 

 

794,883

 

 

4,357

 

2.20

 

 

788,701

 

 

4,627

 

2.35

 

Brokered deposits

 

 

66,701

 

 

259

 

1.56

 

 

92,189

 

 

424

 

1.85

 

 

124,122

 

 

762

 

2.46

 

Total interest-bearing deposits

 

 

2,654,516

 

 

5,805

 

0.88

 

 

2,566,959

 

 

8,693

 

1.36

 

 

2,453,951

 

 

9,362

 

1.53

 

FHLB advances

 

 

258,679

 

 

845

 

1.31

 

 

241,302

 

 

1,253

 

2.09

 

 

291,835

 

 

1,679

 

2.31

 

Subordinated debentures

 

 

33,951

 

 

524

 

6.21

 

 

33,919

 

 

523

 

6.20

 

 

33,826

 

 

524

 

6.21

 

Total borrowings

 

 

292,630

 

 

1,369

 

1.88

 

 

275,221

 

 

1,776

 

2.60

 

 

325,661

 

 

2,203

 

2.71

 

Total interest-bearing liabilities

 

 

2,947,146

 

 

7,174

 

0.98

 

 

2,842,180

 

 

10,469

 

1.48

 

 

2,779,612

 

 

11,565

 

1.67

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

585,715

 

 

 

 

 

 

 

419,620

 

 

 

 

 

 

 

423,462

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

72,808

 

 

 

 

 

 

 

67,714

 

 

 

 

 

 

 

49,163

 

 

 

 

 

 

Total liabilities

 

 

3,605,669

 

 

 

 

 

 

 

3,329,514

 

 

 

 

 

 

 

3,252,237

 

 

 

 

 

 

Total equity

 

 

679,869

 

 

 

 

 

 

 

671,639

 

 

 

 

 

 

 

366,881

 

 

 

 

 

 

Total liabilities and equity

 

$

4,285,538

 

 

 

 

 

 

$

4,001,153

 

 

 

 

 

 

$

3,619,118

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

29,453

 

 

 

 

 

 

 

26,714

 

 

 

 

 

 

 

26,743

 

 

 

Tax equivalent interest rate spread (3)

 

 

 

 

 

 

 

2.75

%

 

 

 

 

 

 

2.58

%

 

 

 

 

 

 

2.91

%

Less: tax equivalent adjustment

 

 

 

 

 

6

 

 

 

 

 

 

 

14

 

 

 

 

 

 

 

30

 

 

 

Net interest income as reported

 

 

 

 

$

29,447

 

 

 

 

 

 

$

26,700

 

 

 

 

 

 

$

26,713

 

 

 

Net interest-earning assets (4)

 

$

1,003,940

 

 

 

 

 

 

$

844,780

 

 

 

 

 

 

$

578,642

 

 

 

 

 

 

Net interest margin (5)

 

 

 

 

 

 

 

3.00

%

 

 

 

 

 

 

2.91

%

 

 

 

 

 

 

3.19

%

Tax equivalent effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

3.00

%

 

 

 

 

 

 

2.91

%

 

 

 

 

 

 

3.19

%

Average interest-earning assets to average interest-bearing liabilities

 

 

134.06

%

 

 

 

 

 

 

129.72

%

 

 

 

 

 

 

120.82

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

3,240,231

 

$

5,805

 

 

 

$

2,986,579

 

$

8,693

 

 

 

$

2,877,413

 

$

9,362

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

0.72

%

 

 

 

 

 

 

1.17

%

 

 

 

 

 

 

1.31

%

Total funding liabilities, including demand deposits

 

$

3,532,861

 

$

7,174

 

 

 

$

3,261,800

 

$

10,469

 

 

 

$

3,203,074

 

$

11,565

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

0.82

%

 

 

 

 

 

 

1.29

%

 

 

 

 

 

 

1.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) 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 2.40%, 2.64%, and 2.86%, respectively.

 

(2) Includes nonaccruing loan balances and interest received on such loans.

 

(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

 

 

 

June 30, 2020

 

June 30, 2019

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost

 

Balance

 

Interest

 

Cost

 

 

 

(dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

257,828

 

$

3,252

 

2.54

%

$

259,678

 

$

3,766

 

2.92

%

Other interest-earning assets

 

 

204,730

 

 

998

 

0.98

 

 

32,334

 

 

931

 

5.81

 

Loans held for sale

 

 

90,297

 

 

1,565

 

3.48

 

 

38,797

 

 

900

 

4.68

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)

 

 

1,760,008

 

 

36,319

 

4.15

 

 

1,414,415

 

 

36,058

 

5.14

 

Residential real estate loans (2)

 

 

1,112,036

 

 

23,355

 

4.22

 

 

1,118,901

 

 

24,472

 

4.41

 

Consumer loans (2)

 

 

394,123

 

 

8,321

 

4.25

 

 

472,683

 

 

9,273

 

3.96

 

Total loans

 

 

3,266,167

 

 

67,995

 

4.19

 

 

3,005,999

 

 

69,803

 

4.68

 

Total interest-earning assets

 

 

3,819,022

 

 

73,810

 

3.89

 

 

3,336,808

 

 

75,400

 

4.56

 

Noninterest-earning assets

 

 

324,323

 

 

 

 

 

 

 

256,895

 

 

 

 

 

 

Total assets

 

$

4,143,345

 

 

 

 

 

 

$

3,593,703

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

764,295

 

 

2,132

 

0.56

 

$

506,782

 

 

928

 

0.37

 

NOW accounts

 

 

173,130

 

 

64

 

0.07

 

 

138,543

 

 

50

 

0.07

 

Money market accounts

 

 

831,048

 

 

3,790

 

0.92

 

 

833,781

 

 

6,144

 

1.49

 

Certificates of deposit

 

 

762,819

 

 

7,829

 

2.06

 

 

800,780

 

 

9,139

 

2.30

 

Brokered deposits

 

 

79,445

 

 

683

 

1.73

 

 

111,800

 

 

1,344

 

2.42

 

Total interest-bearing deposits

 

 

2,610,737

 

 

14,498

 

1.12

 

 

2,391,686

 

 

17,605

 

1.48

 

FHLB advances

 

 

249,990

 

 

2,098

 

1.69

 

 

341,880

 

 

3,954

 

2.33

 

Subordinated debentures

 

 

33,935

 

 

1,047

 

6.20

 

 

33,824

 

 

1,029

 

6.13

 

Total borrowings

 

 

283,925

 

 

3,145

 

2.23

 

 

375,704

 

 

4,983

 

2.67

 

Total interest-bearing liabilities

 

 

2,894,662

 

 

17,643

 

1.23

 

 

2,767,390

 

 

22,588

 

1.65

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

502,668

 

 

 

 

 

 

 

412,081

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

70,261

 

 

 

 

 

 

 

50,682

 

 

 

 

 

 

Total liabilities

 

 

3,467,591

 

 

 

 

 

 

 

3,230,153

 

 

 

 

 

 

Total equity

 

 

675,754

 

 

 

 

 

 

 

363,550

 

 

 

 

 

 

Total liabilities and equity

 

$

4,143,345

 

 

 

 

 

 

$

3,593,703

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

56,167

 

 

 

 

 

 

 

52,812

 

 

 

Tax equivalent interest rate spread (3)

 

 

 

 

 

 

 

2.66

%

 

 

 

 

 

 

2.91

%

Less: tax equivalent adjustment

 

 

 

 

 

20

 

 

 

 

 

 

 

69

 

 

 

Net interest income as reported

 

 

 

 

$

56,147

 

 

 

 

 

 

$

52,743

 

 

 

Net interest-earning assets (4)

 

$

924,360

 

 

 

 

 

 

$

569,418

 

 

 

 

 

 

Net interest margin (5)

 

 

 

 

 

 

 

2.96

%

 

 

 

 

 

 

3.19

%

Tax equivalent effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

2.96

%

 

 

 

 

 

 

3.19

%

Average interest-earning assets to average interest-bearing liabilities

 

 

131.93

%

 

 

 

 

 

 

120.58

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

3,113,405

 

$

14,498

 

 

 

$

2,803,767

 

$

17,605

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

0.94

%

 

 

 

 

 

 

1.27

%

Total funding liabilities, including demand deposits

 

$

3,397,330

 

$

17,643

 

 

 

$

3,179,471

 

$

22,588

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

1.04

%

 

 

 

 

 

 

1.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) 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 2.52% and 2.87% for the six months ended June 30, 2020 and 2019, respectively.

 

(2) Includes nonaccruing loan balances and interest received on such loans.

 

(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

 

 

 

June 30, 2020

 

March 31, 2020

 

December 31, 2019

 

September 30, 2019

 

June 30, 2019

 

 

 

(in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

240,025

 

$

275,632

 

$

236,828

 

$

224,379

 

$

259,151

 

Other interest-earning assets

 

 

222,840

 

 

186,619

 

 

159,211

 

 

185,063

 

 

26,758

 

Loans held for sale

 

 

119,047

 

 

61,548

 

 

115,699

 

 

74,327

 

 

48,158

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)

 

 

1,872,349

 

 

1,647,667

 

 

1,591,188

 

 

1,511,487

 

 

1,445,652

 

Residential real estate loans (2)

 

 

1,123,896

 

 

1,100,177

 

 

1,105,025

 

 

1,119,742

 

 

1,118,761

 

Consumer loans (2)

 

 

372,929

 

 

415,317

 

 

442,689

 

 

454,837

 

 

459,774

 

Total loans

 

 

3,369,174

 

 

3,163,161

 

 

3,138,902

 

 

3,086,066

 

 

3,024,187

 

Total interest-earning assets

 

 

3,951,086

 

 

3,686,960

 

 

3,650,640

 

 

3,569,835

 

 

3,358,254

 

Noninterest-earning assets

 

 

334,452

 

 

314,193

 

 

288,558

 

 

278,976

 

 

260,864

 

Total assets

 

$

4,285,538

 

$

4,001,153

 

$

3,939,198

 

$

3,848,811

 

$

3,619,118

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

842,560

 

$

686,031

 

$

616,008

 

$

564,040

 

$

528,360

 

NOW accounts

 

 

187,560

 

 

158,702

 

 

142,505

 

 

139,773

 

 

140,115

 

Money market accounts

 

 

826,939

 

 

835,154

 

 

867,066

 

 

879,694

 

 

872,653

 

Certificates of deposit

 

 

730,756

 

 

794,883

 

 

811,199

 

 

831,262

 

 

788,701

 

Brokered deposits

 

 

66,701

 

 

92,189

 

 

69,035

 

 

98,278

 

 

124,122

 

Total interest-bearing deposits

 

 

2,654,516

 

 

2,566,959

 

 

2,505,813

 

 

2,513,047

 

 

2,453,951

 

FHLB advances

 

 

258,679

 

 

241,302

 

 

249,102

 

 

213,578

 

 

291,835

 

Subordinated debentures

 

 

33,951

 

 

33,919

 

 

33,887

 

 

33,858

 

 

33,826

 

Total borrowings

 

 

292,630

 

 

275,221

 

 

282,989

 

 

247,436

 

 

325,661

 

Total interest-bearing liabilities

 

 

2,947,146

 

 

2,842,180

 

 

2,788,802

 

 

2,760,483

 

 

2,779,612

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

585,715

 

 

419,620

 

 

433,478

 

 

515,612

 

 

423,462

 

Other noninterest-bearing liabilities

 

 

72,808

 

 

67,714

 

 

54,022

 

 

52,357

 

 

49,163

 

Total liabilities

 

 

3,605,669

 

 

3,329,514

 

 

3,276,302

 

 

3,328,452

 

 

3,252,237

 

Total equity

 

 

679,869

 

 

671,639

 

 

662,896

 

 

520,359

 

 

366,881

 

Total liabilities and equity

 

$

4,285,538

 

$

4,001,153

 

$

3,939,198

 

$

3,848,811

 

$

3,619,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Yield Trend - Quarters Ended

 

 

 

June 30, 2020

 

March 31, 2020

 

December 31, 2019

 

September 30, 2019

 

June 30, 2019

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

 

2.40

%

 

2.66

%

 

2.67

%

 

2.76

%

 

2.91

%

Other interest-earning assets

 

 

0.43

%

 

1.64

%

 

2.06

%

 

2.59

%

 

6.71

%

Loans held for sale

 

 

3.34

%

 

3.77

%

 

3.84

%

 

3.99

%

 

4.52

%

Commercial loans (2)

 

 

3.91

%

 

4.42

%

 

4.79

%

 

4.93

%

 

5.16

%

Residential real estate loans (2)

 

 

4.23

%

 

4.22

%

 

4.41

%

 

4.50

%

 

4.40

%

Consumer loans (2)

 

 

4.27

%

 

4.22

%

 

4.20

%

 

4.13

%

 

4.01

%

Total loans

 

 

4.06

%

 

4.33

%

 

4.58

%

 

4.66

%

 

4.70

%

Total interest-earning assets

 

 

3.73

%

 

4.06

%

 

4.32

%

 

4.42

%

 

4.58

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

0.40

%

 

0.76

%

 

0.77

%

 

0.63

%

 

0.43

%

NOW accounts

 

 

0.07

%

 

0.08

%

 

0.08

%

 

0.07

%

 

0.07

%

Money market accounts

 

 

0.59

%

 

1.24

%

 

1.42

%

 

1.54

%

 

1.56

%

Certificates of deposit

 

 

1.91

%

 

2.20

%

 

2.31

%

 

2.39

%

 

2.35

%

Brokered deposits

 

 

1.56

%

 

1.85

%

 

2.39

%

 

2.47

%

 

2.46

%

Total interest-bearing deposits

 

 

0.88

%

 

1.36

%

 

1.50

%

 

1.57

%

 

1.53

%

FHLB advances

 

 

1.31

%

 

2.09

%

 

2.21

%

 

2.32

%

 

2.31

%

Subordinated debentures

 

 

6.21

%

 

6.20

%

 

6.13

%

 

6.14

%

 

6.21

%

Total borrowings

 

 

1.88

%

 

2.60

%

 

2.68

%

 

2.84

%

 

2.71

%

Total interest-bearing liabilities

 

 

0.98

%

 

1.48

%

 

1.62

%

 

1.69

%

 

1.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) Includes nonaccruing loan balances and interest received on such loans.

 

HarborOne Bancorp, Inc.
Selected Financial Highlights
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

Performance Ratios (annualized):

 

2020

 

2020

 

2019

 

2019

 

2019

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA)

 

 

0.99

%

 

0.47

%

 

0.44

%

 

0.74

%

 

0.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (ROAE)

 

 

6.22

%

 

2.81

%

 

2.60

%

 

5.47

%

 

5.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

$

43,838

 

$

35,388

 

$

38,735

 

$

36,203

 

$

35,081

 

Less: Amortization of other intangible assets

 

 

447

 

 

447

 

 

448

 

 

617

 

 

639

 

Total adjusted noninterest expense

 

$

43,391

 

$

34,941

 

$

38,287

 

$

35,586

 

$

34,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

29,447

 

$

26,700

 

$

28,334

 

$

27,985

 

$

26,713

 

Total noninterest income

 

 

38,638

 

 

18,866

 

 

18,139

 

 

17,273

 

 

15,718

 

Total revenue

 

$

68,085

 

$

45,566

 

$

46,473

 

$

45,258

 

$

42,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (1)

 

 

63.73

%

 

76.68

%

 

82.39

%

 

78.63

%

 

81.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or for the Quarters Ended

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

Asset Quality

 

2020

 

2020

 

2019

 

2019

 

2019

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

38,599

 

$

32,134

 

$

31,040

 

$

27,947

 

$

17,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.86

%

 

0.78

%

 

0.76

%

 

0.71

%

 

0.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

 

1.04

%

 

0.83

%

 

0.76

%

 

0.74

%

 

0.73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge offs

 

$

286

 

$

1,420

 

$

235

 

$

106

 

$

771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized net charge offs/average loans

 

 

0.03

%

 

0.18

%

 

0.03

%

 

0.01

%

 

0.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to nonperforming loans

 

 

94.86

%

 

83.52

%

 

79.35

%

 

83.58

%

 

133.61

%

HarborOne Bancorp, Inc.
Selected Financial Highlights
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

Capital and Share Related

 

2020

 

2020

 

2019

 

2019

 

2019

 

(dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock outstanding (1)

 

 

58,418,021

 

 

58,418,021

 

 

58,418,021

 

 

58,429,584

 

 

58,483,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share (1)

 

$

11.72

 

$

11.56

 

$

11.40

 

$

11.29

 

$

6.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

684,455

 

$

675,139

 

$

665,794

 

$

659,554

 

$

371,118

 

Less: Goodwill

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,635

 

 

69,635

 

Less: Other intangible assets (2)

 

 

5,141

 

 

5,588

 

 

6,035

 

 

6,482

 

 

7,100

 

Tangible common equity

 

$

609,512

 

$

599,749

 

$

589,957

 

$

583,437

 

$

294,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (1) (3)

 

$

10.43

 

$

10.27

 

$

10.10

 

$

9.99

 

$

5.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,464,906

 

$

4,101,206

 

$

4,058,921

 

$

3,949,020

 

$

3,737,424

 

Less: Goodwill

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,635

 

 

69,635

 

Less: Other intangible assets (2)

 

 

5,141

 

 

5,588

 

 

6,035

 

 

6,482

 

 

7,100

 

Tangible assets

 

$

4,389,963

 

$

4,025,816

 

$

3,983,084

 

$

3,872,903

 

$

3,660,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity / tangible assets (4)

 

 

13.88

%

 

14.90

%

 

14.81

%

 

15.06

%

 

8.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

HarborOne Bancorp, Inc.
Segments Statements of Net Income
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Mortgage

 

HarborOne Bank

 

 

For the Quarter Ended

 

For the Quarter Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

March 31,

 

June 30,

 

 

2020

 

2020

 

2019

 

2020

 

2020

 

2019

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

739

 

$

281

 

$

210

 

$

29,139

 

$

26,510

 

$

27,022

Provision for loan losses

 

 

 

 

 

 

 

 

10,004

 

 

3,749

 

 

1,750

Net interest and dividend income, after provision for loan losses

 

 

739

 

 

281

 

 

210

 

 

19,135

 

 

22,761

 

 

25,272

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

30,862

 

 

12,278

 

 

8,428

 

 

 

 

 

 

1

Intersegment gain (loss)

 

 

1,399

 

 

400

 

 

314

 

 

(1,399)

 

 

(400)

 

 

(314)

Changes in mortgage servicing rights fair value

 

 

(621)

 

 

(3,217)

 

 

(1,803)

 

 

(490)

 

 

(1,170)

 

 

(438)

Other

 

 

3,764

 

 

2,220

 

 

2,090

 

 

346

 

 

351

 

 

377

Total mortgage banking income (loss)

 

 

35,404

 

 

11,681

 

 

9,029

 

 

(1,543)

 

 

(1,219)

 

 

(374)

Other noninterest income (loss)

 

 

(11)

 

 

(122)

 

 

(4)

 

 

4,788

 

 

8,526

 

 

7,067

Total noninterest income

 

 

35,393

 

 

11,559

 

 

9,025

 

 

3,245

 

 

7,307

 

 

6,693

Noninterest expense

 

 

18,273

 

 

10,806

 

 

8,917

 

 

25,218

 

 

24,288

 

 

25,257

Income (loss) before income taxes

 

 

17,859

 

 

1,034

 

 

318

 

 

(2,838)

 

 

5,780

 

 

6,708

Provision for income taxes

 

 

3,878

 

 

239

 

 

418

 

 

27

 

 

1,601

 

 

802

Net income (loss)

 

$

13,981

 

$

795

 

$

(100)

 

$

(2,865)

 

$

4,179

 

$

5,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Mortgage

 

HarborOne Bank

 

 

For the Six Months Ended

 

For the Six Months Ended

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

1,020

 

$

319

 

$

55,649

 

$

53,441

Provision for loan losses

 

 

 

 

 

 

13,753

 

 

2,607

Net interest and dividend income, after provision for loan losses

 

 

1,020

 

 

319

 

 

41,896

 

 

50,834

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

43,140

 

 

13,070

 

 

 

 

1

Intersegment gain (loss)

 

 

1,799

 

 

473

 

 

(1,799)

 

 

(473)

Changes in mortgage servicing rights fair value

 

 

(3,838)

 

 

(3,384)

 

 

(1,660)

 

 

(1,008)

Other

 

 

5,984

 

 

3,720

 

 

697

 

 

758

Total mortgage banking income (loss)

 

 

47,085

 

 

13,879

 

 

(2,762)

 

 

(722)

Other noninterest income (loss)

 

 

(133)

 

 

(16)

 

 

13,314

 

 

12,419

Total noninterest income

 

 

46,952

 

 

13,863

 

 

10,552

 

 

11,697

Noninterest expense

 

 

29,079

 

 

16,269

 

 

49,506

 

 

50,122

Income (loss) before income taxes

 

 

18,893

 

 

(2,087)

 

 

2,942

 

 

12,409

Provision (benefit) for income taxes

 

 

4,117

 

 

(427)

 

 

1,628

 

 

2,248

Net income (loss)

 

$

14,776

 

$

(1,660)

 

$

1,314

 

$

10,161

HarborOne Bancorp, Inc.
COVID Loans at Risk
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At Risk Sectors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

 

 

 

 

 

 

 

 

Health

 

 

 

 

 

Total

 

 

 

at risk

 

 

 

 

 

 

 

 

 

and Social

 

 

 

 

 

at risk

 

Total

 

sector

 

 

 

Retail

 

Office

 

Hotel

 

Services

 

Restaurants

 

Recreation

 

sectors

 

loans

 

to total

 

 

 

(dollars in thousands)

 

Commercial real estate

 

$

207,183

 

$

198,021

 

$

167,178

 

$

84,465

 

$

10,253

 

$

15,206

 

$

682,306

 

$

1,318,051

 

51.8

%

Commercial and industrial

 

 

33,442

 

 

15,878

 

 

2,735

 

 

93,518

 

 

37,357

 

 

7,910

 

 

190,840

 

 

456,192

 

41.9

 

Commercial construction

 

 

10,010

 

 

6,749

 

 

21,444

 

 

 

 

9,503

 

 

9,044

 

 

56,750

 

 

194,549

 

29.2

 

Total

 

$

250,635

 

$

220,648

 

$

191,357

 

$

177,983

 

$

57,113

 

$

32,160

 

$

929,896

 

$

1,968,792

 

47.2

%

Percent to total commercial loans

 

 

12.7

%

 

11.2

%

 

9.7

%

 

9.0

%

 

2.9

%

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding principal balance of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial deferrals

 

$

33,421

 

$

14,194

 

$

118,389

 

$

12,769

 

$

8,695

 

$

13,792

 

$

201,260

 

$

262,419

 

76.7

%

PPP loans

 

$

7,118

 

$

 

$

569

 

$

42,509

 

$

9,353

 

$

2,772

 

$

62,321

 

$

152,634

 

40.8

%

Nonaccrual loans

 

$

545

 

$

155

 

$

3,325

 

$

448

 

$

17

 

$

9,200

 

$

13,690

 

$

38,064

 

36.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New commercial originations for the three months ended June 30, 2020, excluding PPP loans

 

$

22,179

 

$

14,914

 

$

 

$

50,624

 

$

 

$

 

$

87,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

(dollars in thousands)

 

 

Loan Deferrals

 

Outstanding

 

% to Total

 

 

 

 

#

 

 

$

 

 

 

 

 

 

 

Commercial real estate

 

 

69

 

 

206,777

 

$

1,318,051

 

 

15.7

%

Commercial and industrial

 

 

86

 

 

40,630

 

 

456,213

 

 

8.9

 

Commercial construction

 

 

2

 

 

15,011

 

 

194,527

 

 

7.7

 

1-4 Family

 

 

147

 

 

50,878

 

 

977,336

 

 

5.2

 

Home Equity

 

 

25

 

 

1,846

 

 

152,709

 

 

1.2

 

Residential construction

 

 

 

 

 

 

20,656

 

 

 

Consumer

 

 

664

 

 

15,875

 

 

354,530

 

 

4.5

 

 

 

 

993

 

 

331,017

 

 

3,474,022

 

 

9.5

%

 

Contacts

Linda Simmons, SVP, CFO (508) 895-1379

Release Summary

HarborOne Bancorp, Inc. Announces 2020 Second Quarter Earnings

Contacts

Linda Simmons, SVP, CFO (508) 895-1379