HarborOne Bancorp, Inc. Announces 2023 Fourth Quarter Results

BROCKTON, Mass.--()--HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $16.1 million, or $0.37 per diluted share, for the year ended December 31, 2023, a decrease of $29.5 million, or 64.7%, compared to net income of $45.6 million, or $0.97 per diluted share, for the year ended December 31, 2022. For the fourth quarter of 2023, the Company reported a net loss of $7.1 million, or $0.17 per diluted share, compared to net income of $8.4 million, or $0.20 per diluted share, for the preceding quarter and net income of $9.6 million, or $0.21 per diluted share, for the same period last year.

The results for the quarter and year ended December 31, 2023 were significantly impacted by the full impairment of goodwill at Harbor One Mortgage, LLC (“HarborOne Mortgage”) in the amount of $10.8 million. Throughout 2023 HarborOne Mortgage, and the mortgage banking industry in general, faced significant headwinds. The combination of the average residential mortgage rate reaching twenty-year highs during 2023 and a housing market with low inventory and higher prices, generated the lowest annual residential mortgage loan origination volume in two decades. As a result of these conditions, the impairment analysis of goodwill completed in the fourth quarter resulted in a determination that the goodwill at HarborOne Mortgage was fully impaired.

Excluding the HarborOne Mortgage goodwill impairment charge of $10.8 million, included in noninterest expense, net income and diluted earnings per share for the quarter and year ended December 31, 2023 were $3.7 million, or $0.09(1) per diluted share and $26.9 million, or $0.62(1) per diluted share, respectively. Goodwill impairment is a non-cash charge that has no impact on our liquidity, or regulatory capital ratios.

Selected Financial Highlights:

  • Deposit growth, excluding brokered deposits, of $172.7 million, or 4.4%, year over year.
  • Strong asset quality; nonperforming loans as a percentage of total loans were 0.37% compared to 0.39% last quarter
  • Excluding the goodwill impairment, reduced noninterest expense 8.2% year over year.
  • Loan growth of $200.6 million, or 4.4%, year over year.
  • Continued share repurchase program, repurchasing 570,527 shares at an average cost of $10.15 per share, totaling $5.8 million.
  • Redeemed $35 million subordinated debt with an 8.45% interest rate.

“I am very proud of the progress our team is making in building our relationship bank model,” said Joseph F. Casey, President and CEO. “We have customer deposit growth of over 4% in 2023, as well as growth in deposit market share in about 80% of our markets. This growth will position us well for the future.”

Net Interest Income
The Company’s net interest and dividend income was $29.7 million for the quarter ended December 31, 2023, compared to $31.1 million for the quarter ended September 30, 2023, and $39.2 million for the quarter ended December 31, 2022. The tax equivalent interest rate spread and net interest margin were 1.56% and 2.23%, respectively, for the quarter ended December 31, 2023, compared to 1.70% and 2.34%, respectively, for the quarter ended September 30, 2023, and 2.88% and 3.23%, respectively, for the quarter ended December 31, 2022.

On December 1, 2023, the Company elected to redeem its subordinated notes in the amount of $35 million. This early redemption resulted in interest expense of $620,000 for the remaining unamortized issuance costs during the quarter. Issuance cost amortization recorded in the quarter ended September 30, 2023 was $32,000. For the quarter ended December 31, 2023, the tax equivalent interest rate spread and net interest margin excluding the additional amortization were 1.62% and 2.27%, respectively.

On a linked-quarter basis, the decreases in net interest and dividend income, tax equivalent interest rate spread, and net interest margin primarily reflect a higher cost of funding, partially offset by increased loan balances and yields, with liability repricing outpacing assets. While the yield on interest-earning assets increased 7 basis points from the preceding quarter, the cost of interest-bearing liabilities increased 21 basis points, in a competitive deposit pricing market.

The $9.5 million decrease in net interest and dividend income from the prior year quarter reflects an increase of $22.0 million, or 172.6%, in total interest expense, partially offset by an increase of $12.5 million, or 24.0%, in total interest and dividend income. The changes reflect rate and volume changes in both interest-bearing assets and liabilities. The cost of interest-bearing liabilities increased 186 basis points, while the average balance increased $597.7 million, and the yield on interest-earning assets increased 54 basis points, while the average balance increased $496.8 million.

The quarter and year-to-date results reflect the continuing impact of the successive federal funds rate increases that occurred from March 2022 to July 2023 totaling 525 basis points. The current market expectations for 2024 suggest falling rates throughout the year, although pressure may remain on deposit pricing in competitive markets as financial institutions continue to prioritize customer deposit funding.

Noninterest Income
Total noninterest income decreased $2.7 million, or 23.2%, to $8.9 million for the quarter ended December 31, 2023, from $11.6 million for the quarter ended September 30, 2023. The decrease was primarily driven by a decrease in the mortgage servicing rights (“MSR”) valuation for the three months ended December 31, 2023 of $3.1 million, compared to an increase of $770,000 for the three months ended September 30, 2023. The MSR valuation was negatively impacted by key benchmark rates used in the valuation model, which decreased from the prior quarter. The impact on the MSR of principal payments on the underlying mortgages was $487,000 and $645,000 for the quarters ended, December 31, 2023 and September 30, 2023, respectively.

Persistent low inventory of for-sale residential real estate and elevated mortgage interest rates continued to impact the results of HarborOne Mortgage with gain on loan sales of $2.2 million from mortgage loan closings of $124.2 million for the quarter ended December 31, 2023, compared to $2.7 million in gain on loan sales from mortgage loan closings of $157.6 million in the preceding quarter.

Total noninterest income for the quarter and year ended December 31, 2023 included a $305,000 gain on sale of a former bank branch, and $582,000 recognized on a revenue enhancing Bank-owned life insurance (“BOLI”) surrender and exchange strategy. The BOLI income was offset by a $464,000 corresponding tax impact included in the provision for income taxes and a modified endowment contract charge included in noninterest expense.

Total noninterest income decreased $996,000, or 10.1%, compared to the quarter ended December 31, 2022, primarily due to a $1.1 million, or 53.7%, decrease in mortgage banking income. The prior year quarter reflected a $2.1 million decrease in the fair value of the MSR.

Noninterest Expense
Total noninterest expense increased $11.3 million, or 35.6% to $43.2 million for the quarter ended December 31, 2023, from $31.9 million for the quarter ended September 30, 2023. Excluding the one-time $10.8 million goodwill impairment charge, noninterest expenses for the quarter ended December 31, 2023 were $32.4 million. The linked-quarter increase, excluding the goodwill impairment charge, was $582,000. Loan expense for the quarter ended December 31, 2023 includes a $629,000 reversal of repurchase reserve at HarborOne Mortgage based on updated assumptions used to determine the estimate.

Total noninterest expense increased $8.6 million, or 24.7% compared to the prior year quarter of $34.6 million. Excluding the goodwill impairment charge, noninterest expenses decreased $2.2 million from the prior year quarter. Full-time equivalent employees decreased 80 for the year ended December 31, 2023, as HarborOne Mortgage and the Bank proactively enacted cost saving measures, including reductions in force. The reduction in force resulted in a decrease in compensation and benefits expense of $905,000, primarily reflecting decreased salary, mortgage origination commission and incentive accruals, and an occupancy and equipment expense decrease of $265,000. These decreases were partially offset by a $409,000 increase in deposit insurance expense.

Asset Quality and Allowance for Credit Losses
Total nonperforming assets were $17.6 million at December 31, 2023, compared to $18.8 million at September 30, 2023 and $14.8 million at December 31, 2022. Nonperforming assets as a percentage of total assets were 0.31% at December 31, 2023, 0.33% at September 30, 2023, and 0.28% at December 31, 2022.

The Company recorded a provision for loan credit losses of $970,000 and $6.7 million for the quarter and year ended December 31, 2023. The provision for loan credit losses for the quarter and year ended December 31, 2022 was $2.1 million and $5.7 million, respectively, and the Company recorded a provision for loan credit losses of $474,000 for the quarter ended September 30, 2023. Net charge-offs totaled $1.3 million, or 0.11%, and $4.0 million, or 0.08%, of average loans outstanding on an annualized basis, for the quarter and year ended December 31, 2023, respectively. Net charge-offs totaled $2.1 million, or 0.19%, of average loans outstanding on an annualized basis, for the quarter ended December 31, 2022 and net recoveries totaled $18,000 for the quarter ended September 30, 2023. Loan credit loss provisioning for the fourth quarter and the years ended December 31, 2023 and 2022, primarily reflect replenishment of the allowance for credit losses (“ACL”) on loans due to charge-offs and loan growth.

The ACL on loans was $48.0 million, or 1.01% of total loans, at December 31, 2023, compared to $48.3 million, or 1.02% of total loans, at September 30, 2023 and $45.2 million, or 0.99% of total loans, at December 31, 2022. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheets, amounted to $3.9 million at December 31, 2023, compared to $4.2 million at September 30, 2023 and $4.9 million at December 31, 2022.

Management continues to closely monitor the loan portfolio for signs of deterioration in light of speculation that commercial real estate values may deteriorate as the market adjusts to higher vacancies and interest rates. The commercial real estate portfolio is centered in New England, with approximately 75% of the portfolio secured by property located in Massachusetts and Rhode Island. Approximately 60% of the commercial real estate loans are fixed-rate loans with, in the opinion of management, limited near-term maturity risk.

Management also continues to monitor certain sectors within the commercial real estate segment that may be particularly susceptible to increased credit risk as a result of trends that were precipitated by the COVID-19 pandemic and may be exacerbated by current economic conditions. This includes business-oriented hotels, non-anchored retail space, and metro office space. As of December 31, 2023, business-oriented hotels loans included 14 loans with a total outstanding balance of $122.7 million, non-anchored retail space loans included 28 loans with a total outstanding balance of $44.8 million, and metro office space loans included two loans with a total outstanding balance of $10.8 million. During the fourth quarter of 2023, a charge-off of $1.3 million was recorded on one of the metro office space loans based on a purchase and sale agreement that is expected to close in the second quarter of 2024. As of December 31, 2023, this loan has a carrying value of $5.7 million, was rated doubtful and on nonaccrual. There is also one business-oriented hotel credit with a carrying value of $1.7 million that was rated substandard and on nonaccrual. The other loans in these groups were performing in accordance with their terms.

Balance Sheet
Total assets were $5.67 billion and $5.36 billion as of December 31, 2023 and 2022, respectively, and $5.66 billion at September 30, 2023. The linked-quarter increase and year-over-year increase primarily reflect increases in total loans and cash and cash equivalents.

Available-for-sale securities were $290.2 million and $301.1 million at December 31, 2023 and 2022, respectively and $271.1 million at September 30, 2023. The unrealized loss on securities available for sale was $62.0 million and $68.3 million as of December 31, 2023 and 2022, respectively, as compared to $81.3 million of unrealized losses as of September 30, 2023. Securities held to maturity were flat at $19.8 million, or 0.4% of total assets, during 2023.

Loans increased $27.5 million, or 0.6%, to $4.75 billion at December 31, 2023, from $4.72 billion at September 30, 2023. The increase in loans for the three months ended December 31, 2023 was primarily due to increases in commercial construction loans of $17.2 million, commercial and industrial loans of $15.9 million, and residential mortgage loans of $2.8 million, partially offset by decreases in commercial real estate loans of $6.2 million and consumer loans of $2.2 million.

Total deposits were $4.39 billion at December 31, 2023 and $4.41 billion at September 30, 2023. Compared to the prior quarter, non-certificate accounts decreased $76.4 million and term certificate accounts increased $4.2 million, as competitive rate specials attracted term certificate deposits during the quarter. Brokered deposits increased $49.7 million. As of December 31, 2023, FDIC-insured deposits were approximately 68% of total deposits, including Bank subsidiary deposits. Including Depositors Insurance Fund (“DIF”) excess insurance coverage that remains available until February 24, 2024, insured deposits are approximately 84% of total deposits, including Bank subsidiary deposits. Although the Bank exited the DIF as of February 24, 2023, insurance remains in place for funds on deposit as of that date for one year, or until maturity for term certificates.

FHLB borrowings increased $93.0 million to $568.5 million at December 31, 2023 from $475.5 million at September 30, 2023. As of December 31, 2023, the Bank had $1.18 billion in available borrowing capacity across multiple relationships. Additionally, on December 1, 2023, the Company redeemed its $35.0 million in subordinated debt.

Total stockholders’ equity was $583.8 million at December 31, 2023, compared to $584.6 million at September 30, 2023 and $617.0 million at December 31, 2022. Stockholders’ equity decreased 0.1% when compared to the prior quarter, as net loss and share repurchases were partially offset by a decrease in unrealized loss on available-for-sale securities. As of December 31, 2023, the Company’s sixth share repurchase program, commenced in the third quarter of 2023, is ongoing with 1,223,050 shares repurchased, at an average price of $10.05, including $0.10 per share of excise tax, since commencement. The tangible-common-equity-to-tangible-assets ratio(2) was 9.33% at December 31, 2023, 9.17% at September 30, 2023, and 10.31% at December 31, 2022. At December 31, 2023, the Company and the Bank had strong capital positions, exceeding all regulatory capital requirements, and are considered well-capitalized.

(1) This non-GAAP ratio is net loss less goodwill impairment to weighted average shares outstanding on a diluted basis.
(2) This non-GAAP ratio is total stockholders equity less goodwill and intangible assets to total assets less goodwill and intangible assets.

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

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

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

HarborOne Bancorp, Inc.

Consolidated Balance Sheet Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands)

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

38,876

 

$

38,573

 

$

43,525

 

$

38,989

 

$

39,712

Short-term investments

 

 

188,474

 

 

208,211

 

 

209,326

 

 

210,765

 

 

58,305

Total cash and cash equivalents

 

 

227,350

 

 

246,784

 

 

252,851

 

 

249,754

 

 

98,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

290,151

 

 

271,078

 

 

292,012

 

 

303,059

 

 

301,149

Securities held to maturity, at amortized cost

 

 

19,796

 

 

19,795

 

 

19,839

 

 

19,838

 

 

19,949

Federal Home Loan Bank stock, at cost

 

 

27,098

 

 

23,378

 

 

27,123

 

 

23,589

 

 

20,071

Asset held for sale

 

 

348

 

 

966

 

 

966

 

 

 

 

Loans held for sale, at fair value

 

 

19,686

 

 

17,796

 

 

20,949

 

 

13,956

 

 

18,544

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

2,343,675

 

 

2,349,886

 

 

2,286,688

 

 

2,286,727

 

 

2,250,344

Commercial construction

 

 

208,443

 

 

191,224

 

 

228,902

 

 

212,689

 

 

199,311

Commercial and industrial

 

 

466,443

 

 

450,547

 

 

453,422

 

 

423,036

 

 

424,275

Total commercial loans

 

 

3,018,561

 

 

2,991,657

 

 

2,969,012

 

 

2,922,452

 

 

2,873,930

Residential real estate

 

 

1,709,714

 

 

1,706,950

 

 

1,701,766

 

 

1,667,934

 

 

1,634,319

Consumer

 

 

22,036

 

 

24,247

 

 

27,425

 

 

32,246

 

 

41,421

Loans

 

 

4,750,311

 

 

4,722,854

 

 

4,698,203

 

 

4,622,632

 

 

4,549,670

Less: Allowance for credit losses on loans

 

 

(47,972)

 

 

(48,312)

 

 

(47,821)

 

 

(46,994)

 

 

(45,236)

Net loans

 

 

4,702,339

 

 

4,674,542

 

 

4,650,382

 

 

4,575,638

 

 

4,504,434

Mortgage servicing rights, at fair value

 

 

46,111

 

 

49,201

 

 

48,176

 

 

47,080

 

 

48,138

Goodwill

 

 

59,042

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

Other intangible assets

 

 

1,515

 

 

1,704

 

 

1,893

 

 

2,082

 

 

2,272

Other assets

 

 

274,460

 

 

289,341

 

 

275,261

 

 

268,060

 

 

277,169

Total assets

 

$

5,667,896

 

$

5,664,387

 

$

5,659,254

 

$

5,572,858

 

$

5,359,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposit accounts

 

$

659,973

 

$

708,847

 

$

717,572

 

$

726,548

 

$

762,576

NOW accounts

 

 

305,825

 

 

289,141

 

 

286,956

 

 

287,376

 

 

297,692

Regular savings and club accounts

 

 

1,265,315

 

 

1,324,635

 

 

1,390,906

 

 

1,455,318

 

 

1,468,172

Money market deposit accounts

 

 

966,201

 

 

951,128

 

 

834,120

 

 

796,008

 

 

861,704

Term certificate accounts

 

 

863,457

 

 

859,266

 

 

742,931

 

 

653,553

 

 

497,975

Brokered deposits

 

 

326,638

 

 

276,941

 

 

315,003

 

 

322,927

 

 

301,380

Total deposits

 

 

4,387,409

 

 

4,409,958

 

 

4,287,488

 

 

4,241,730

 

 

4,189,499

FHLB borrowings

 

 

568,462

 

 

475,470

 

 

604,568

 

 

590,665

 

 

400,675

Subordinated debt

 

 

 

 

34,380

 

 

34,348

 

 

34,317

 

 

34,285

Other liabilities and accrued expenses

 

 

128,266

 

 

159,945

 

 

137,318

 

 

106,352

 

 

118,110

Total liabilities

 

 

5,084,137

 

 

5,079,753

 

 

5,063,722

 

 

4,973,064

 

 

4,742,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

598

 

 

597

 

 

597

 

 

597

 

 

596

Additional paid-in capital

 

 

486,502

 

 

485,144

 

 

484,544

 

 

483,831

 

 

483,031

Unearned compensation - ESOP

 

 

(25,785)

 

 

(26,245)

 

 

(26,704)

 

 

(27,164)

 

 

(27,623)

Retained earnings

 

 

359,656

 

 

369,930

 

 

364,709

 

 

360,454

 

 

356,438

Treasury stock

 

 

(193,590)

 

 

(187,803)

 

 

(181,324)

 

 

(175,514)

 

 

(148,384)

Accumulated other comprehensive loss

 

 

(43,622)

 

 

(56,989)

 

 

(46,290)

 

 

(42,410)

 

 

(47,082)

Total stockholders' equity

 

 

583,759

 

 

584,634

 

 

595,532

 

 

599,794

 

 

616,976

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

5,667,896

 

$

5,664,387

 

$

5,659,254

 

$

5,572,858

 

$

5,359,545

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands, except share data)

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

59,499

 

$

58,124

 

$

55,504

 

$

52,771

 

$

49,177

Interest on loans held for sale

 

 

369

 

 

370

 

 

326

 

 

286

 

 

334

Interest on securities

 

 

2,001

 

 

2,003

 

 

2,035

 

 

2,079

 

 

2,045

Other interest and dividend income

 

 

2,516

 

 

2,667

 

 

2,935

 

 

803

 

 

359

Total interest and dividend income

 

 

64,385

 

 

63,164

 

 

60,800

 

 

55,939

 

 

51,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

27,310

 

 

25,039

 

 

20,062

 

 

15,913

 

 

8,499

Interest on FHLB and FRB borrowings

 

 

6,260

 

 

6,439

 

 

8,114

 

 

5,105

 

 

3,703

Interest on subordinated debentures

 

 

1,122

 

 

606

 

 

524

 

 

523

 

 

524

Total interest expense

 

 

34,692

 

 

32,084

 

 

28,700

 

 

21,541

 

 

12,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

29,693

 

 

31,080

 

 

32,100

 

 

34,398

 

 

39,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for credit losses

 

 

644

 

 

(113)

 

 

3,283

 

 

1,866

 

 

2,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for credit losses

 

 

29,049

 

 

31,193

 

 

28,817

 

 

32,532

 

 

37,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

2,176

 

 

2,704

 

 

3,300

 

 

2,224

 

 

2,301

Changes in mortgage servicing rights fair value

 

 

(3,553)

 

 

125

 

 

436

 

 

(1,692)

 

 

(2,631)

Other

 

 

2,301

 

 

2,270

 

 

2,312

 

 

2,216

 

 

2,325

Total mortgage banking income

 

 

924

 

 

5,099

 

 

6,048

 

 

2,748

 

 

1,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

5,178

 

 

5,133

 

 

5,012

 

 

4,733

 

 

5,031

Income on retirement plan annuities

 

 

147

 

 

146

 

 

128

 

 

119

 

 

118

Bank-owned life insurance income

 

 

1,207

 

 

531

 

 

511

 

 

500

 

 

501

Other income

 

 

1,448

 

 

689

 

 

963

 

 

590

 

 

2,255

Total noninterest income

 

 

8,904

 

 

11,598

 

 

12,662

 

 

8,690

 

 

9,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

19,199

 

 

18,699

 

 

18,220

 

 

17,799

 

 

20,104

Occupancy and equipment

 

 

4,670

 

 

4,430

 

 

4,633

 

 

5,040

 

 

4,935

Data processing

 

 

2,474

 

 

2,548

 

 

2,403

 

 

2,346

 

 

2,359

Loan (income) expense

 

 

(317)

 

 

385

 

 

417

 

 

313

 

 

169

Marketing

 

 

811

 

 

794

 

 

925

 

 

1,181

 

 

862

Professional fees

 

 

1,690

 

 

1,374

 

 

1,114

 

 

1,501

 

 

1,446

Deposit insurance

 

 

795

 

 

1,004

 

 

1,176

 

 

510

 

 

385

Goodwill impairment

 

 

10,760

 

 

 

 

 

 

 

 

Other expenses

 

 

3,132

 

 

2,638

 

 

2,837

 

 

2,819

 

 

4,384

Total noninterest expenses

 

 

43,214

 

 

31,872

 

 

31,725

 

 

31,509

 

 

34,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

 

(5,261)

 

 

10,919

 

 

9,754

 

 

9,713

 

 

12,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

1,850

 

 

2,507

 

 

2,275

 

 

2,416

 

 

2,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(7,111)

 

$

8,412

 

$

7,479

 

$

7,297

 

$

9,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Losses) earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.17)

 

$

0.20

 

$

0.17

 

$

0.16

 

$

0.21

Diluted

 

$

(0.17)

 

$

0.20

 

$

0.17

 

$

0.16

 

$

0.21

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

42,111,872

 

 

42,876,893

 

 

43,063,507

 

 

44,857,224

 

 

45,321,491

Diluted

 

 

42,299,858

 

 

42,983,477

 

 

43,133,455

 

 

45,284,240

 

 

45,861,658

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

 

 

(dollars in thousands, except share data)

 

2023

 

2022

 

$ Change

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

225,898

 

$

162,340

 

$

63,558

 

39.2

%

Interest on loans held for sale

 

 

1,351

 

 

1,306

 

 

45

 

3.4

 

Interest on securities

 

 

8,118

 

 

7,590

 

 

528

 

7.0

 

Other interest and dividend income

 

 

8,921

 

 

694

 

 

8,227

 

1185.4

 

Total interest and dividend income

 

 

244,288

 

 

171,930

 

 

72,358

 

42.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

88,324

 

 

15,630

 

 

72,694

 

465.1

 

Interest on FHLB and FRB borrowings

 

 

25,918

 

 

5,219

 

 

20,699

 

396.6

 

Interest on subordinated debentures

 

 

2,775

 

 

2,095

 

 

680

 

32.5

 

Total interest expense

 

 

117,017

 

 

22,944

 

 

94,073

 

410.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

127,271

 

 

148,986

 

 

(21,715)

 

(14.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

5,680

 

 

5,660

 

 

20

 

0.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision for credit losses

 

 

121,591

 

 

143,326

 

 

(21,735)

 

(15.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

10,404

 

 

15,970

 

 

(5,566)

 

(34.9)

 

Changes in mortgage servicing rights fair value

 

 

(4,684)

 

 

5,332

 

 

(10,016)

 

(187.8)

 

Other

 

 

9,099

 

 

9,948

 

 

(849)

 

(8.5)

 

Total mortgage banking income

 

 

14,819

 

 

31,250

 

 

(16,431)

 

(52.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

20,056

 

 

19,265

 

 

791

 

4.1

 

Income on retirement plan annuities

 

 

540

 

 

456

 

 

84

 

18.4

 

Bank-owned life insurance income

 

 

2,749

 

 

1,981

 

 

768

 

38.8

 

Other income

 

 

3,690

 

 

4,357

 

 

(667)

 

(15.3)

 

Total noninterest income

 

 

41,854

 

 

57,309

 

 

(15,455)

 

(27.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

73,917

 

 

83,273

 

 

(9,356)

 

(11.2)

 

Occupancy and equipment

 

 

18,773

 

 

19,767

 

 

(994)

 

(5.0)

 

Data processing

 

 

9,771

 

 

9,170

 

 

601

 

6.6

 

Loan expense

 

 

798

 

 

1,387

 

 

(589)

 

(42.5)

 

Marketing

 

 

3,711

 

 

3,916

 

 

(205)

 

(5.2)

 

Professional fees

 

 

5,679

 

 

6,122

 

 

(443)

 

(7.2)

 

Deposit insurance

 

 

3,485

 

 

1,445

 

 

2,040

 

141.2

 

Goodwill impairment

 

 

10,760

 

 

 

 

10,760

 

0.0

 

Other expenses

 

 

11,426

 

 

13,826

 

 

(2,400)

 

(17.4)

 

Total noninterest expenses

 

 

138,320

 

 

138,906

 

 

(586)

 

(0.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

25,125

 

 

61,729

 

 

(36,604)

 

(59.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

9,048

 

 

16,140

 

 

(7,092)

 

(43.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

16,077

 

$

45,589

 

$

(29,512)

 

(64.7)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.37

 

$

0.98

 

 

 

 

 

 

Diluted

 

$

0.37

 

$

0.97

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

43,221,738

 

 

46,483,664

 

 

 

 

 

 

Diluted

 

 

43,419,622

 

 

47,118,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost (8)

 

Balance

 

Interest

 

Cost (8)

 

Balance

 

Interest

 

Cost (8)

 

 

 

(dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

370,683

 

$

2,001

 

2.14

%

$

375,779

 

$

2,003

 

2.11

%

$

388,247

 

$

2,045

 

2.09

%

Other interest-earning assets

 

 

205,929

 

 

2,516

 

4.85

 

 

207,234

 

 

2,667

 

5.11

 

 

42,640

 

 

359

 

3.34

 

Loans held for sale

 

 

20,010

 

 

369

 

7.32

 

 

20,919

 

 

370

 

7.02

 

 

22,350

 

 

334

 

5.93

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)(3)

 

 

3,005,840

 

 

41,263

 

5.45

 

 

2,980,817

 

 

40,438

 

5.38

 

 

2,770,667

 

 

34,351

 

4.92

 

Residential real estate loans (3)(4)

 

 

1,707,978

 

 

18,103

 

4.21

 

 

1,700,383

 

 

17,525

 

4.09

 

 

1,566,389

 

 

14,352

 

3.64

 

Consumer loans (3)

 

 

22,324

 

 

384

 

6.82

 

 

25,126

 

 

412

 

6.51

 

 

45,629

 

 

632

 

5.50

 

Total loans

 

 

4,736,142

 

 

59,750

 

5.01

 

 

4,706,326

 

 

58,375

 

4.92

 

 

4,382,685

 

 

49,335

 

4.47

 

Total interest-earning assets

 

 

5,332,764

 

 

64,636

 

4.81

 

 

5,310,258

 

 

63,415

 

4.74

 

 

4,835,922

 

 

52,073

 

4.27

 

Noninterest-earning assets

 

 

313,729

 

 

 

 

 

 

 

314,030

 

 

 

 

 

 

 

311,372

 

 

 

 

 

 

Total assets

 

$

5,646,493

 

 

 

 

 

 

$

5,624,288

 

 

 

 

 

 

$

5,147,294

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

1,307,774

 

 

6,875

 

2.09

 

$

1,360,728

 

 

6,787

 

1.98

 

$

1,408,493

 

 

3,591

 

1.01

 

NOW accounts

 

 

290,147

 

 

122

 

0.17

 

 

274,329

 

 

75

 

0.11

 

 

291,890

 

 

40

 

0.05

 

Money market accounts

 

 

963,223

 

 

9,288

 

3.83

 

 

910,694

 

 

8,355

 

3.64

 

 

878,609

 

 

3,312

 

1.50

 

Certificates of deposit

 

 

859,274

 

 

8,329

 

3.85

 

 

818,182

 

 

7,212

 

3.50

 

 

487,121

 

 

1,062

 

0.86

 

Brokered deposits

 

 

288,449

 

 

2,696

 

3.71

 

 

287,428

 

 

2,610

 

3.60

 

 

148,460

 

 

494

 

1.32

 

Total interest-bearing deposits

 

 

3,708,867

 

 

27,310

 

2.92

 

 

3,651,361

 

 

25,039

 

2.72

 

 

3,214,573

 

 

8,499

 

1.05

 

FHLB and FRB borrowings

 

 

507,520

 

 

6,260

 

4.89

 

 

508,001

 

 

6,439

 

5.03

 

 

392,508

 

 

3,703

 

3.74

 

Subordinated debentures

 

 

22,614

 

 

1,122

 

19.68

 

 

34,364

 

 

606

 

7.00

 

 

34,268

 

 

524

 

6.07

 

Total borrowings

 

 

530,134

 

 

7,382

 

5.52

 

 

542,365

 

 

7,045

 

5.15

 

 

426,776

 

 

4,227

 

3.93

 

Total interest-bearing liabilities

 

 

4,239,001

 

 

34,692

 

3.25

 

 

4,193,726

 

 

32,084

 

3.04

 

 

3,641,349

 

 

12,726

 

1.39

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

683,548

 

 

 

 

 

 

 

705,009

 

 

 

 

 

 

 

788,572

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

137,239

 

 

 

 

 

 

 

126,742

 

 

 

 

 

 

 

101,621

 

 

 

 

 

 

Total liabilities

 

 

5,059,788

 

 

 

 

 

 

 

5,025,477

 

 

 

 

 

 

 

4,531,542

 

 

 

 

 

 

Total stockholders' equity

 

 

586,705

 

 

 

 

 

 

 

598,811

 

 

 

 

 

 

 

615,752

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

5,646,493

 

 

 

 

 

 

$

5,624,288

 

 

 

 

 

 

$

5,147,294

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

29,944

 

 

 

 

 

 

 

31,331

 

 

 

 

 

 

 

39,347

 

 

 

Tax equivalent interest rate spread (5)

 

 

 

 

 

 

 

1.56

%

 

 

 

 

 

 

1.70

%

 

 

 

 

 

 

2.88

%

Less: tax equivalent adjustment

 

 

 

 

 

251

 

 

 

 

 

 

 

251

 

 

 

 

 

 

 

158

 

 

 

Net interest income as reported

 

 

 

 

$

29,693

 

 

 

 

 

 

$

31,080

 

 

 

 

 

 

$

39,189

 

 

 

Net interest-earning assets (6)

 

$

1,093,763

 

 

 

 

 

 

$

1,116,532

 

 

 

 

 

 

$

1,194,573

 

 

 

 

 

 

Net interest margin (7)

 

 

 

 

 

 

 

2.21

%

 

 

 

 

 

 

2.32

%

 

 

 

 

 

 

3.22

%

Tax equivalent effect

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

 

0.02

 

 

 

 

 

 

 

0.01

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

2.23

%

 

 

 

 

 

 

2.34

%

 

 

 

 

 

 

3.23

%

Ratio of interest-earning assets to interest-bearing liabilities

 

 

125.80

%

 

 

 

 

 

 

126.62

%

 

 

 

 

 

 

132.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

4,392,415

 

$

27,310

 

 

 

$

4,356,370

 

$

25,039

 

 

 

$

4,003,145

 

$

8,499

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

2.47

%

 

 

 

 

 

 

2.28

%

 

 

 

 

 

 

0.84

%

Total funding liabilities, including demand deposits

 

$

4,922,549

 

$

34,692

 

 

 

$

4,898,735

 

$

32,084

 

 

 

$

4,429,921

 

$

12,726

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

2.80

%

 

 

 

 

 

 

2.60

%

 

 

 

 

 

 

1.14

%

(1) 

Includes securities available for sale and securities held to maturity.

(2)

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

(3)

Includes nonaccruing loan balances and interest received on such loans.

(4)

Includes the basis adjustments of certain loans included in fair value hedging relationships.

(5)

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

(6)

Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(7)

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

(8)

Annualized.

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended

 

 

 

December 31, 2023

 

December 31, 2022

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost (8)

 

Balance

 

Interest

 

Cost (8)

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

378,828

 

$

8,118

 

2.14

%

$

390,894

 

$

7,590

 

1.94

%

Other interest-earning assets

 

 

179,338

 

 

8,921

 

4.97

 

 

70,987

 

 

694

 

0.98

 

Loans held for sale

 

 

19,671

 

 

1,351

 

6.87

 

 

27,409

 

 

1,306

 

4.76

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)(3)

 

 

2,956,956

 

 

157,379

 

5.32

 

 

2,493,646

 

 

110,305

 

4.42

 

Residential real estate loans (3)(4)

 

 

1,684,793

 

 

67,701

 

4.02

 

 

1,398,190

 

 

48,645

 

3.48

 

Consumer loans (3)

 

 

28,149

 

 

1,734

 

6.16

 

 

78,766

 

 

3,811

 

4.84

 

Total loans

 

 

4,669,898

 

 

226,814

 

4.86

 

 

3,970,602

 

 

162,761

 

4.10

 

Total interest-earning assets

 

 

5,247,735

 

 

245,204

 

4.67

 

 

4,459,892

 

 

172,351

 

3.86

 

Noninterest-earning assets

 

 

311,558

 

 

 

 

 

 

 

314,670

 

 

 

 

 

 

Total assets

 

$

5,559,293

 

 

 

 

 

 

$

4,774,562

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

1,386,891

 

 

25,271

 

1.82

 

$

1,284,364

 

 

5,794

 

0.45

 

NOW accounts

 

 

280,218

 

 

292

 

0.10

 

 

302,530

 

 

156

 

0.05

 

Money market accounts

 

 

875,722

 

 

29,138

 

3.33

 

 

879,133

 

 

5,632

 

0.64

 

Certificates of deposit

 

 

735,614

 

 

23,499

 

3.19

 

 

495,066

 

 

3,248

 

0.66

 

Brokered deposits

 

 

296,838

 

 

10,124

 

3.41

 

 

112,939

 

 

800

 

0.71

 

Total interest-bearing deposits

 

 

3,575,283

 

 

88,324

 

2.47

 

 

3,074,032

 

 

15,630

 

0.51

 

FHLB and FRB borrowings

 

 

532,586

 

 

25,918

 

4.87

 

 

170,748

 

 

5,219

 

3.06

 

Subordinated debentures

 

 

31,378

 

 

2,775

 

8.84

 

 

34,221

 

 

2,095

 

6.12

 

Total borrowings

 

 

563,964

 

 

28,693

 

5.09

 

 

204,969

 

 

7,314

 

3.57

 

Total interest-bearing liabilities

 

 

4,139,247

 

 

117,017

 

2.83

 

 

3,279,001

 

 

22,944

 

0.70

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

705,438

 

 

 

 

 

 

 

771,299

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

113,675

 

 

 

 

 

 

 

85,995

 

 

 

 

 

 

Total liabilities

 

 

4,958,360

 

 

 

 

 

 

 

4,136,295

 

 

 

 

 

 

Total stockholders' equity

 

 

600,933

 

 

 

 

 

 

 

638,267

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

5,559,293

 

 

 

 

 

 

$

4,774,562

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

128,187

 

 

 

 

 

 

 

149,407

 

 

 

Tax equivalent interest rate spread (5)

 

 

 

 

 

 

 

1.84

%

 

 

 

 

 

 

3.16

%

Less: tax equivalent adjustment

 

 

 

 

 

916

 

 

 

 

 

 

 

421

 

 

 

Net interest income as reported

 

 

 

 

$

127,271

 

 

 

 

 

 

$

148,986

 

 

 

Net interest-earning assets (6)

 

$

1,108,488

 

 

 

 

 

 

$

1,180,891

 

 

 

 

 

 

Net interest margin (7)

 

 

 

 

 

 

 

2.43

%

 

 

 

 

 

 

3.34

%

Tax equivalent effect

 

 

 

 

 

 

 

0.01

 

 

 

 

 

 

 

0.01

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

2.44

%

 

 

 

 

 

 

3.35

%

Ratio of interest-earning assets to interest-bearing liabilities

 

 

126.78

%

 

 

 

 

 

 

136.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

4,280,721

 

$

88,324

 

 

 

$

3,845,331

 

$

15,630

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

2.06

%

 

 

 

 

 

 

0.41

%

Total funding liabilities, including demand deposits

 

$

4,844,685

 

$

117,017

 

 

 

$

4,050,300

 

$

22,944

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

2.42

%

 

 

 

 

 

 

0.57

%

(1)

Includes securities available for sale and securities held to maturity.

(2)

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

(3)

Includes nonaccruing loan balances and interest received on such loans.

(4)

Includes the basis adjustments of certain loans included in fair value hedging relationships.

(5)

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

(6)

Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(7)

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

HarborOne Bancorp, Inc.

Average Balances and Yield Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances - Trend - Quarters Ended

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

$

370,683

 

$

375,779

 

$

381,762

 

$

387,303

 

$

388,247

 

Other interest-earning assets

 

 

205,929

 

 

207,234

 

 

238,891

 

 

63,426

 

 

42,640

 

Loans held for sale

 

 

20,010

 

 

20,919

 

 

19,614

 

 

18,108

 

 

22,350

 

Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans (2)(3)

 

 

3,005,840

 

 

2,980,817

 

 

2,938,292

 

 

2,901,464

 

 

2,770,667

 

Residential real estate loans (3)(4)

 

 

1,707,978

 

 

1,700,383

 

 

1,682,860

 

 

1,647,109

 

 

1,566,389

 

Consumer loans (3)

 

 

22,324

 

 

25,126

 

 

29,025

 

 

36,310

 

 

45,629

 

Total loans

 

 

4,736,142

 

 

4,706,326

 

 

4,650,177

 

 

4,584,883

 

 

4,382,685

 

Total interest-earning assets

 

 

5,332,764

 

 

5,310,258

 

 

5,290,444

 

 

5,053,720

 

 

4,835,922

 

Noninterest-earning assets

 

 

313,729

 

 

314,030

 

 

305,132

 

 

313,309

 

 

311,372

 

Total assets

 

$

5,646,493

 

$

5,624,288

 

$

5,595,576

 

$

5,367,029

 

$

5,147,294

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

1,307,774

 

$

1,360,728

 

$

1,421,622

 

$

1,459,392

 

$

1,408,493

 

NOW accounts

 

 

290,147

 

 

274,329

 

 

280,501

 

 

275,801

 

 

291,890

 

Money market accounts

 

 

963,223

 

 

910,694

 

 

802,373

 

 

824,694

 

 

878,609

 

Certificates of deposit

 

 

859,274

 

 

818,182

 

 

708,087

 

 

552,636

 

 

487,121

 

Brokered deposits

 

 

288,449

 

 

287,428

 

 

281,614

 

 

330,426

 

 

148,460

 

Total interest-bearing deposits

 

 

3,708,867

 

 

3,651,361

 

 

3,494,197

 

 

3,442,949

 

 

3,214,573

 

FHLB and FRB borrowings

 

 

507,520

 

 

508,001

 

 

666,345

 

 

448,096

 

 

392,508

 

Subordinated debentures

 

 

22,614

 

 

34,364

 

 

34,331

 

 

34,298

 

 

34,268

 

Total borrowings

 

 

530,134

 

 

542,365

 

 

700,676

 

 

482,394

 

 

426,776

 

Total interest-bearing liabilities

 

 

4,239,001

 

 

4,193,726

 

 

4,194,873

 

 

3,925,343

 

 

3,641,349

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

683,548

 

 

705,009

 

 

712,081

 

 

721,536

 

 

788,572

 

Other noninterest-bearing liabilities

 

 

137,239

 

 

126,742

 

 

88,363

 

 

101,820

 

 

101,621

 

Total liabilities

 

 

5,059,788

 

 

5,025,477

 

 

4,995,317

 

 

4,748,699

 

 

4,531,542

 

Total stockholders' equity

 

 

586,705

 

 

598,811

 

 

600,259

 

 

618,330

 

 

615,752

 

Total liabilities and stockholders' equity

 

$

5,646,493

 

$

5,624,288

 

$

5,595,576

 

$

5,367,029

 

$

5,147,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Yield Trend - Quarters Ended

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities (1)

 

 

2.14

%

 

2.11

%

 

2.14

%

 

2.18

%

 

2.09

%

Other interest-earning assets

 

 

4.85

%

 

5.11

%

 

4.93

%

 

5.13

%

 

3.34

%

Loans held for sale

 

 

7.32

%

 

7.02

%

 

6.67

%

 

6.41

%

 

5.93

%

Commercial loans (2)(3)

 

 

5.45

%

 

5.38

%

 

5.30

%

 

5.15

%

 

4.92

%

Residential real estate loans (3)(4)

 

 

4.21

%

 

4.09

%

 

3.92

%

 

3.85

%

 

3.64

%

Consumer loans (3)

 

 

6.82

%

 

6.51

%

 

5.79

%

 

5.80

%

 

5.50

%

Total loans

 

 

5.01

%

 

4.92

%

 

4.81

%

 

4.69

%

 

4.47

%

Total interest-earning assets

 

 

4.81

%

 

4.74

%

 

4.63

%

 

4.51

%

 

4.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

2.09

%

 

1.98

%

 

1.74

%

 

1.51

%

 

1.01

%

NOW accounts

 

 

0.17

%

 

0.11

%

 

0.08

%

 

0.05

%

 

0.05

%

Money market accounts

 

 

3.83

%

 

3.64

%

 

3.13

%

 

2.58

%

 

1.50

%

Certificates of deposit

 

 

3.85

%

 

3.50

%

 

2.99

%

 

1.97

%

 

0.86

%

Brokered deposits

 

 

3.71

%

 

3.60

%

 

3.29

%

 

3.08

%

 

1.32

%

Total interest-bearing deposits

 

 

2.92

%

 

2.72

%

 

2.30

%

 

1.87

%

 

1.05

%

FHLB and FRB borrowings

 

 

4.89

%

 

5.03

%

 

4.88

%

 

4.62

%

 

3.74

%

Subordinated debentures

 

 

19.68

%

 

7.00

%

 

6.12

%

 

6.18

%

 

6.07

%

Total borrowings

 

 

5.52

%

 

5.15

%

 

4.94

%

 

4.73

%

 

3.93

%

Total interest-bearing liabilities

 

 

3.25

%

 

3.04

%

 

2.74

%

 

2.23

%

 

1.39

%

(1) 

Includes securities available for sale and securities held to maturity.

(2)

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

(3)

Includes nonaccruing loan balances and interest received on such loans.

(4)

Includes the basis adjustments of certain loans included in fair value hedging relationships.

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

Performance Ratios (annualized):

 

2023

 

2023

 

2023

 

2023

 

2022

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(7,111)

 

$

8,411

 

$

7,450

 

$

7,297

 

$

9,577

 

Less: Goodwill impairment charge

 

 

10,760

 

 

 

 

 

 

 

 

 

Net income, excluding goodwill impairment charge

 

$

3,649

 

$

8,411

 

$

7,450

 

$

7,297

 

$

9,577

 

Average Assets

 

$

5,646,493

 

$

5,624,288

 

$

5,595,576

 

$

5,367,029

 

$

5,147,294

 

Average Equity

 

$

586,705

 

$

598,811

 

$

600,258

 

$

618,330

 

$

615,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA)

 

 

(0.50)

%

 

0.60

%

 

0.54

%

 

0.54

%

 

0.74

%

Return on average assets (ROAA), excluding goodwill impairment charge(1)

 

 

0.26

%

 

0.60

%

 

0.54

%

 

0.54

%

 

0.74

%

Return on average equity (ROAE)

 

 

(4.85)

%

 

5.62

%

 

4.98

%

 

4.72

%

 

6.22

%

Return on average equity (ROAE), excluding goodwill impairment charge(2)

 

 

2.49

%

 

5.62

%

 

4.98

%

 

4.72

%

 

6.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

$

43,214

 

$

31,872

 

$

31,725

 

$

31,509

 

$

34,644

 

Less: Amortization of other intangible assets

 

 

189

 

 

189

 

 

189

 

 

189

 

 

189

 

Total adjusted noninterest expense

 

 

43,025

 

 

31,683

 

 

31,536

 

 

31,320

 

 

34,455

 

Less: Goodwill impairment charge

 

 

10,760

 

 

 

 

 

 

 

 

 

Total adjusted noninterest expense, excluding goodwill impairment

 

$

32,265

 

$

31,683

 

$

31,536

 

$

31,320

 

$

34,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

29,693

 

$

31,080

 

$

32,100

 

$

34,398

 

$

39,189

 

Total noninterest income

 

 

8,904

 

 

11,598

 

 

12,662

 

 

8,690

 

 

9,900

 

Total revenue

 

$

38,597

 

$

42,678

 

$

44,762

 

$

43,088

 

$

49,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (3)

 

 

111.47

%

 

74.24

%

 

70.45

%

 

72.69

%

 

70.19

%

Efficiency ratio, excluding goodwill impairment charge(4)

 

 

83.59

%

 

74.24

%

 

70.45

%

 

72.69

%

 

70.19

%

(1) 

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

(2)

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

(3)

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

(4)

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

 

At or for the Quarters Ended

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

Asset Quality

 

2023

 

2023

 

2023

 

2023

 

2022

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

17,582

 

$

18,795

 

$

20,234

 

$

12,300

 

$

14,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.31

%

 

0.33

%

 

0.36

%

 

0.22

%

 

0.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to total loans

 

 

1.01

%

 

1.02

%

 

1.02

%

 

1.02

%

 

0.99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

$

1,311

 

$

(18)

 

$

2,671

 

$

(11)

 

$

2,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized net charge-offs (recoveries)/average loans

 

 

0.11

%

 

%

 

0.23

%

 

%

 

0.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to nonperforming loans

 

 

273.92

%

 

257.21

%

 

236.62

%

 

383.50

%

 

305.93

%

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

Capital and Share Related

 

2023

 

2023

 

2023

 

2023

 

2022

 

(dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock outstanding

 

 

45,401,224

 

 

45,915,364

 

 

46,575,478

 

 

47,063,087

 

 

48,961,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

12.86

 

$

12.73

 

$

12.79

 

$

12.74

 

$

12.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

583,759

 

$

584,634

 

$

595,532

 

$

599,794

 

$

616,976

 

Less: Goodwill

 

 

59,042

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

Less: Other intangible assets (1)

 

 

1,515

 

 

1,704

 

 

1,893

 

 

2,082

 

 

2,272

 

Tangible common equity

 

$

523,202

 

$

513,128

 

$

523,837

 

$

527,910

 

$

544,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (2)

 

$

11.52

 

$

11.18

 

$

11.25

 

$

11.22

 

$

11.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,667,896

 

$

5,664,387

 

$

5,659,254

 

$

5,572,858

 

$

5,359,545

 

Less: Goodwill

 

 

59,042

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

Less: Other intangible assets

 

 

1,515

 

 

1,704

 

 

1,893

 

 

2,082

 

 

2,272

 

Tangible assets

 

$

5,607,339

 

$

5,592,881

 

$

5,587,559

 

$

5,500,974

 

$

5,287,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity / tangible assets (3)

 

 

9.33

%

 

9.17

%

 

9.38

%

 

9.60

%

 

10.31

%

(1)

Other intangible assets are core deposit intangibles.

(2)

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

(3)

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

HarborOne Bancorp, Inc.

Segments Key Financial Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

Statements of Net Income for HarborOne Bank Segment:

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

30,637

 

$

31,468

 

$

32,490

 

$

34,562

 

$

39,258

 

 

Provision (benefit) for credit losses

 

 

644

 

 

(113)

 

 

3,283

 

 

1,866

 

 

2,108

 

 

Net interest and dividend income, after provision for credit losses

 

 

29,993

 

 

31,581

 

 

29,207

 

 

32,696

 

 

37,150

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intersegment loss

 

 

(159)

 

 

(198)

 

 

(358)

 

 

(348)

 

 

(997)

 

 

Changes in mortgage servicing rights fair value

 

 

(257)

 

 

18

 

 

29

 

 

(136)

 

 

(263)

 

 

Other

 

 

185

 

 

188

 

 

195

 

 

201

 

 

203

 

 

Total mortgage banking (loss) income

 

 

(231)

 

 

8

 

 

(134)

 

 

(283)

 

 

(1,057)

 

 

Other noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

5,178

 

 

5,132

 

 

5,013

 

 

4,733

 

 

5,031

 

 

Income on retirement plan annuities

 

 

147

 

 

146

 

 

128

 

 

119

 

 

118

 

 

Bank-owned life insurance income

 

 

1,207

 

 

531

 

 

511

 

 

500

 

 

501

 

 

Other income

 

 

1,405

 

 

694

 

 

962

 

 

590

 

 

2,129

 

 

Total noninterest income

 

 

7,706

 

 

6,511

 

 

6,480

 

 

5,659

 

 

6,722

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

16,535

 

 

15,238

 

 

15,067

 

 

14,764

 

 

16,531

 

 

Occupancy and equipment

 

 

4,038

 

 

3,828

 

 

3,910

 

 

4,295

 

 

4,236

 

 

Data processing

 

 

2,462

 

 

2,527

 

 

2,355

 

 

2,305

 

 

2,285

 

 

Loan expense

 

 

153

 

 

128

 

 

96

 

 

87

 

 

55

 

 

Marketing

 

 

751

 

 

709

 

 

787

 

 

1,063

 

 

747

 

 

Professional fees

 

 

1,404

 

 

914

 

 

699

 

 

996

 

 

1,027

 

 

Deposit insurance

 

 

794

 

 

1,004

 

 

1,176

 

 

510

 

 

385

 

 

Other expenses

 

 

2,476

 

 

1,924

 

 

2,103

 

 

2,170

 

 

3,478

 

 

Total noninterest expenses

 

 

28,613

 

 

26,272

 

 

26,193

 

 

26,190

 

 

28,744

 

 

Less: Amortization of other intangible assets

 

 

189

 

 

190

 

 

189

 

 

189

 

 

189

 

 

Total adjusted noninterest expense

 

 

28,424

 

 

26,082

 

 

26,004

 

 

26,001

 

 

28,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

9,086

 

 

11,820

 

 

9,494

 

 

12,165

 

 

15,128

 

 

Provision for income taxes

 

 

2,535

 

 

2,716

 

 

2,193

 

 

3,115

 

 

2,817

 

 

Net income

 

$

6,551

 

$

9,104

 

$

7,301

 

$

9,050

 

$

12,311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (1) - QTD

 

 

74.13

%

 

68.67

%

 

66.73

%

 

64.65

%

 

62.10

%

 

Efficiency ratio (1) - YTD

 

 

68.49

%

 

66.64

%

 

65.67

%

 

64.65

%

 

64.25

%

 

(1) 

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

HarborOne Bancorp, Inc.

Segments Key Financial Data

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

Statements of Net Income for HarborOne Mortgage Segment:

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

160

 

$

199

 

$

120

 

$

327

 

$

419

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

2,176

 

 

2,704

 

 

3,300

 

 

2,224

 

 

2,301

 

 

Intersegment gain

 

 

56

 

 

249

 

 

90

 

 

454

 

 

553

 

 

Changes in mortgage servicing rights fair value

 

 

(3,296)

 

 

107

 

 

407

 

 

(1,556)

 

 

(2,368)

 

 

Other

 

 

2,116

 

 

2,082

 

 

2,117

 

 

2,015

 

 

2,122

 

 

Total mortgage banking income

 

 

1,052

 

 

5,142

 

 

5,914

 

 

3,137

 

 

2,608

 

 

Other noninterest income (loss)

 

 

2

 

 

(4)

 

 

 

 

 

 

126

 

 

Total noninterest income

 

 

1,054

 

 

5,138

 

 

5,914

 

 

3,137

 

 

2,734

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

3,217

 

 

4,014

 

 

3,700

 

 

3,575

 

 

3,825

 

 

Occupancy and equipment

 

 

596

 

 

567

 

 

688

 

 

701

 

 

663

 

 

Data processing

 

 

13

 

 

21

 

 

48

 

 

41

 

 

74

 

 

Loan expense

 

 

(470)

 

 

258

 

 

321

 

 

226

 

 

114

 

 

Marketing

 

 

60

 

 

85

 

 

138

 

 

118

 

 

115

 

 

Professional fees

 

 

120

 

 

155

 

 

180

 

 

257

 

 

115

 

 

Goodwill impairment

 

 

10,760

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

371

 

 

390

 

 

418

 

 

404

 

 

546

 

 

Total noninterest expenses

 

 

14,667

 

 

5,490

 

 

5,493

 

 

5,322

 

 

5,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

 

(13,453)

 

 

(153)

 

 

541

 

 

(1,858)

 

 

(2,299)

 

 

Income tax (benefit) provision

 

 

(596)

 

 

(15)

 

 

232

 

 

(565)

 

 

 

 

Net (loss) income

 

$

(12,857)

 

$

(138)

 

$

309