HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ:
HONE), the holding company for HarborOne Bank (the “Bank”),
announced net income of $14.3 million, or $0.27 per diluted share,
for the second quarter of 2021, compared to $19.4 million, or $0.37
per diluted share, for the preceding quarter and $10.6 million, or
$0.19 per diluted share, for the same period last year. For the six
months ended June 30, 2021, net income was $33.7 million, or $0.64
per diluted share, compared to $15.3 million, or $0.28 per diluted
share, for the same period last year.
Selected Second Quarter Financial Highlights:
- Recorded a reversal of provision of $4.3 million, reflecting an
improved economic outlook.
- Maintained strong asset quality and had annualized net
recoveries of 0.02%.
- Completed first share repurchase program at an average price
per share of $11.32; second share repurchase program launched.
- Accelerating customer activity and deposit account fee
reinstatement drove a deposit account fee increase of 18%.
- Commercial loan growth of $24.2 million, or 1.2%, excluding the
change in U.S. Small Business Administration Paycheck Protection
Program (“PPP”) loans.
- Cost of funds continue to decline, decreasing 7 basis
points.
“We remain focused on the disciplined management of key business
drivers, from asset quality to cost of funds to investments in our
digital banking capabilities,” said Jim Blake, CEO. Added Joseph
Casey, President and COO, “We continued our de novo branch
expansion with our second Boston branch, and believe we’re well
positioned to take advantage of the significant market dislocation
we expect in Q4 and Q1 2022 with two in-market community bank
mergers.”
Net Interest Income
The Company’s net interest and dividend income was $32.5 million
for the quarter ended June 30, 2021, up $478,000, or 1.5%, from
$32.1 million for the quarter ended March 31, 2021 and up $3.1
million, or 10.5%, from $29.4 million for the quarter ended June
30, 2020. The tax equivalent interest rate spread and net interest
margin were 2.93% and 3.06%, respectively, for the quarter ended
June 30, 2021, compared to 2.99% and 3.14%, respectively, for the
quarter ended March 31, 2021, and 2.75% and 3.00%, respectively,
for the quarter ended June 30, 2020. Net interest margin and the
tax equivalent interest rate spread continue to be impacted by low
interest rates, elevated loan prepayments, and the recognition of
deferred fees on U.S. Small Business Administration Paycheck
Protection Program (“PPP”) loans. The decrease in the yield on
interest-earning assets was partially offset by the continued
favorable repricing of deposits. It is expected that interest rates
will remain low during 2021, resulting in continued margin
pressure.
The quarter-over-quarter increase in net interest and dividend
income included an increase of $40,000, or 0.1%, in total interest
and dividend income and a decrease of $438,000, or 11.5%, in total
interest expense. The increase in total interest and dividend
income primarily reflected a $117.2 million increase in average
earning assets, partially offset by a 13-basis point decrease in
the yield on average earning assets. The yield on loans was 4.00%
for the quarter ended June 30, 2021, up from 3.93% for the quarter
ended March 31, 2021, as low interest rates were offset by
recognition of deferred fees, accretion income and prepayment
penalties. The three months ended June 30, 2021 and March 31, 2021
include the recognition of deferred fees on PPP loans in the amount
of $1.3 million and $1.5 million, respectively. Interest on loans
in the second quarter included $1.0 million in accretion income
from the fair value discount on loans acquired in connection with
the merger with Coastway Bancorp, Inc. and $244,000 in prepayment
penalties on commercial loans. Accretion income and prepayment
penalties in the preceding quarter were $1.2 million and $153,000,
respectively.
The decrease in total interest expense primarily reflected a
decrease in interest rates, resulting in a 7-basis point decrease
in the cost of interest-bearing deposits. The mix of deposits
continues to shift as customers move to more liquid options. The
average balance of certificate of deposit accounts decreased
quarter over quarter by $18.1 million, while the savings account
average balance increased $59.7 million from the preceding quarter.
Average Federal Home Loan Bank of Boston (“FHLB”) advances
decreased $5.6 million, and the cost of those funds increased one
basis point, resulting in a decrease of $21,000 in interest expense
on FHLB borrowings.
The increase in net interest and dividend income from the prior
year quarter reflected a decrease of $3.8 million, or 53.2%, in
total interest expense, partially offset by a $734,000, or 2.0%,
decrease in total interest and dividend income. The decreases
reflect rate and volume changes in both interest-bearing assets and
liabilities. The cost of interest-bearing liabilities decreased 53
basis points while the average balance increased $76.9 million. The
yield on interest-earning assets decreased 35 basis points while
the average balance increased $309.8 million.
Noninterest Income
Total noninterest income decreased $16.1 million, or 42.6%, to
$21.7 million for the quarter ended June 30, 2021, from $37.8
million for the quarter ended March 31, 2021. Mortgage loan demand
decreased as refinancing activity slowed and gain-on-sale margins
narrowed, negatively impacting total mortgage banking income.
Mortgage loan closings of $638.8 million resulted in a gain on loan
sales of $14.3 million for the quarter ended June 30, 2021, as
compared to $760.2 million in mortgage closings and $24.8 million
in gain on sales for the preceding quarter. The decrease in
refinancing volume and low for-sale inventory resulted in the
locked residential mortgage pipeline decreasing $99.8 million and
negatively impacted the fair value of the derivative mortgage
commitments recorded through the gain on loan sales. The change in
the fair value of derivatives included in mortgage banking income
was a negative $5.3 million for the three months ended June 30,
2021 as compared to a positive $4,000 for the three months ended
March 31, 2021.
The change in the fair value of mortgage servicing rights also
negatively impacted mortgage banking income. The fair value of the
mortgage servicing rights decreased $1.1 million for the three
months ended June 30, 2021, as compared to a $5.0 million increase
for the three months ended March 31, 2021. The 10-year Treasury
Constant Maturity rate decreased 29 basis points in the second
quarter of 2021 and increased 81 basis points in the first quarter
of 2021. The change in the fair value of the mortgage servicing
rights is generally consistent with the change in the 10-year
Treasury Constant Maturity rate. As interest rates rise and
prepayment speeds slow, mortgage servicing rights values tend to
increase; conversely, as interest rates fall and prepayment speeds
quicken mortgage servicing rights values tend to decrease. The
negative impact on mortgage servicing rights when rates fall in the
future may be muted, as mortgage servicing rights originated during
the second half of 2020 were at historically low rates.
Additionally residential mortgage loan payoffs resulted in a
decrease of mortgage servicing rights in the amount of $1.5 million
and $1.6 million for the three months ended June 30, 2021 and March
31, 2021, respectively.
Deposit account fees increased $694,000, or 18.0%, to $4.5
million for the quarter ended June 30, 2021, from $3.9 million for
the quarter ended March 31, 2021 as customer activity rebounded and
normal deposit account fees were reinstated.
Total noninterest income decreased $16.9 million, or 43.7%, as
compared to the quarter ended June 30, 2020, primarily due to a
$18.0 million, or 53.3%, decrease in mortgage banking income,
primarily driven by the decrease in loan closings and narrowing
gain-on-sale margins in 2021. The decrease in mortgage banking
income was offset by a $1.6 million increase in deposit account
fees.
Noninterest Expense
Total noninterest expenses were $38.6 million for the quarter
ended June 30, 2021, a decrease of $4.2 million, or 9.8%, from the
quarter ended March 31, 2021, primarily driven by a $2.3 million
decrease in compensation and benefits expense, and a $1.2 million
decrease in loan expense. Both decreases reflect the decrease in
residential mortgage loan closings at HarborOne Mortgage, LLC
(“HarborOne Mortgage”). In response to the decrease in mortgage
origination volume HarborOne Mortgage reduced its workforce by 12
full-time equivalents, and an additional 8 full-time equivalents
were lost through attrition, with an expected annual savings of
$1.1 million. All expenses related to the workforce reduction were
incurred in the second quarter.
Total noninterest expenses decreased $5.2 million, or 11.8%,
from the quarter ended June 30, 2020. Compensation and benefits
decreased $2.3 million and loan expenses decreased $1.5 million,
consistent with the decrease in residential mortgage loan closings.
Other expenses decreased $1.8 million, as the three months ended
June 30, 2020 included $1.4 million in COVID-19 pandemic related
expenses.
Income Tax Provision
The effective tax rate was 28.3% for the quarter ended June 30,
2021, compared to 28.1% for the quarter ended March 31, 2021 and
25.8% for the quarter ended June 30, 2020.
Provision for Loan Losses and Asset Quality
The Company recorded a reversal of provision for loan losses of
$4.3 million for the quarter ended June 30, 2021, compared to
provision of $91,000 for the quarter ended March 31, 2021 and $10.0
million for the quarter ended June 30, 2020. The allowance for loan
losses was $51.3 million, or 1.50% of total loans at June 30, 2021,
compared to $55.4 million, or 1.60% of total loans at March 31,
2021 and $36.1 million, or 1.04% of total loans at June 30, 2020.
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,
2021 included adjustments for our quarterly analysis of our
historical and peer loss experience rates, commercial real estate
loan growth, an increase of general reserve allocation of 5 basis
points on jumbo residential mortgage loans, and a $1.5 million
specific reserve on one commercial credit. Positive economic and
pandemic trends also resulted in a $6.4 million negative provision
for COVID-19. The provision for loan losses for the quarter ended
March 31, 2021 included adjustments based on our quarterly analysis
of our historical and peer loss experience rates and commercial
loan growth. Given stabilized credit quality trends, we made no
additional provision directly related to the COVID-19 pandemic in
the first quarter of 2021 as loan deferrals have largely expired
without significant delinquency issues, and trends in the at-risk
portfolios remained positive. 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.
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, and the loan risk profile
of each loan type. Positive economic trends, vaccination rates, and
COVID-19 cases, low delinquency levels, and status of deferred
loans resulted in management reducing provisions related to the
COVID-19 pandemic in the second quarter of 2021 with a reversal of
provision of $6.4 million. There was no additional provisions
provided for the COVID-19 pandemic for the first quarter of 2021.
An additional provision of $1.7 million was provided to the
commercial loan categories for the three months ended December 31,
2020. No additional provisions specific to the COVID-19 pandemic
were provided for the residential real estate or consumer loan
portfolios in the fourth quarter of 2020. The additional provisions
provided to each loan category for the three months ended June 30,
2020 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 current
economic conditions, the mitigating effects of government stimulus,
and loan modification efforts designed to limit the long-term
impacts 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 73.1% of the total
commercial loan portfolio. Management initially identified six
sectors as the most susceptible to increased credit risk as a
result of the COVID-19 pandemic: retail, office space, hotels,
health and social services, restaurants, and recreation. In the
second quarter of 2021, as part of ongoing monitoring of the
at-risk sectors, management determined that the health and social
services sector no longer presents an additional risk from the
impact of the COVID-19 pandemic. As the COVID-19 pandemic has
abated, borrowers in this sector have returned to pre-pandemic
revenue and profitability levels. Health and social services
operations supported by first-round PPP loans have a 100%
forgiveness rate. Further, over the last eight quarters, the sector
has experienced a positive migration in obligor risk ratings and no
watch or substandard credits, and delinquency in the sector is
currently zero. The total loan portfolio of the remaining five
commercial sectors identified as at risk totaled $764.7 million,
which represents 35.8% of the commercial loan portfolio. The five
currently identified at-risk sectors include $646.6 million in
commercial real estate loans, $77.2 million in commercial and
industrial loans, and $40.9 million in commercial construction
loans. Non-performing loans included in the at-risk sectors
amounted to $12.5 million at June 30, 2021, of which $12.2 million
was included in the hotels sector.
As of June 30, 2021, the retail sector was $264.6 million, or
12.4% of total commercial loans, and included $221.4 million in
commercial real estate loans, $26.8 million in commercial and
industrial loans, and $16.3 million in commercial construction
loans. PPP loans included in this sector totaled $477,000. There
are no active deferrals for loans in this sector and expired
deferrals are paying as expected. We originated $5.4 million loans
during the second quarter that are within the retail sector.
As of June 30, 2021, the office space sector was $210.6 million,
or 9.9% of total commercial loans, and included $194.2 million in
commercial real estate loans, $15.5 million in commercial and
industrial loans, and $854,000 in commercial construction loans.
There are no active deferrals for loans and expired deferrals are
paying as expected. No PPP loans were originated in this sector. We
originated $5.0 million loans during the second quarter that are
within the office space sector.
As of June 30, 2021, the hotel sector was $212.1 million, or
9.9% of total commercial loans, and included $201.2 million in
commercial real estate loans, $2.1 million in commercial and
industrial loans, and $8.8 million in commercial construction
loans. PPP loans included in the sector totaled $87,000. Active
deferrals for loans in this sector had outstanding principal
balances of $7.7 million and one loan with an outstanding principal
balance of $254,000 had an expired deferral period and is greater
than 30 days delinquent. At June 30, 2021, nonperforming loans
included in the hotel sector amount to $12.2 million. One of the
non-accrual loans amounted to $9.0 million with a deferral period
that expired in the second quarter of 2021, however it was
determined in the fourth quarter of 2020 that weaknesses in the
borrower’s credit warranted a downgrade to substandard and
nonaccrual status. A specific reserve of $1.8 million has been
allocated to this loan. The Bank is receiving payments of interest
only on its pro rata share of the loan in accordance with a
forbearance agreement, in part through a non-revolving line of
credit provided solely by the lead bank.
As of June 30, 2021, the restaurant sector amounted to $58.6
million, or 2.7% of total commercial loans, including $1.8 million
in PPP loans. Active deferrals for loans in this sector had
outstanding principal balances of $3.3 million. The recreation
sector amounted to $18.8 million, or 0.9% of total commercial
loans, including $94,000 in PPP loans. There are no active
deferrals for loans in this sector and expired deferrals are paying
as expected.
We provided access to the PPP to both our existing customers and
new customers, to ensure small businesses in the communities we
serve have access to this important lifeline for their businesses.
In the second quarter of 2021 we originated $4.0 million in PPP
loans with processing fees of $345,000 and processed forgiveness on
$63.1 million loans. We have processed forgiveness on approximately
95% of PPP loans executed in 2020 with a success rate above 99%. As
of June 30, 2021, PPP loans amounted to $105.2 million and there
was $4.1 million in deferred processing fee income that will be
recognized over the life of the loans.
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, 2021, we
have three active payment deferrals on commercial loans with a
total principal balance of $11.0 million, or 0.5% of total
commercial loans, all of which are loans included in an at-risk
sector. As of June 30, 2021, 96.2% of the commercial deferrals have
expired and the borrower is making payments as agreed, 0.1% of the
commercial deferrals have expired and the borrower is delinquent,
and 3.7% are in active deferral period. The active commercial
deferrals are scheduled to expire during 2021. We are no longer
providing deferrals under the Coronavirus Aid Relief and Economic
Security Act but continue to consider accommodations in the normal
course of business.
The residential loan and consumer loan portfolios have not
experienced significant credit quality deterioration as of June 30,
2021; however, the continuing impact and uncertain nature of the
COVID-19 pandemic may result in increases in delinquencies,
charge-offs and loan modifications in these portfolios through the
remainder of 2021. As of June 30, 2021, we had eight active payment
deferrals on residential mortgage loans with a total principal
balance of $2.9 million, or 0.3% of total residential loans. As of
June 30, 2021 89.8% of the deferrals have expired and are paying as
agreed, 3.3% have expired and are delinquent and 6.9% are in active
deferral periods. We had three active payment deferrals on consumer
loans with a total principal balance of $22,000 and 96.2% of the
consumer loan deferrals have expired and are paying as agreed.
Requests for additional extensions on residential mortgage loans
and consumer loans were not significant as of June 30, 2021.
Net recoveries totaled $175,000 for the quarter ended June 30,
2021, or 0.02% of average loans outstanding on an annualized basis.
Net charge-offs totaled $102,000, or 0.01% of average loans
outstanding on an annualized basis, for the quarter ended March 31,
2021 and $286,000, or 0.03% of average loans outstanding on an
annualized basis, for the quarter ended June 30, 2020.
Credit quality performance has remained strong with total
nonperforming assets of $32.7 million at June 30, 2021, compared to
$32.9 million at March 31, 2021 and $38.6 million at June 30, 2020.
Nonperforming assets as a percentage of total assets were 0.71% at
both June 30, 2021 and March 31, 2021, and 0.86% at June 30,
2020.
Balance Sheet
Total assets increased $10.5 million, or 0.2%, to $4.62 billion
at June 30, 2021 from $4.61 billion at March 31, 2021. The increase
primarily reflects an increase of $92.9 million in short-term
investments and a $49.7 million increase in securities available
for sale partially offset by a $106.6 million decrease in loans
held for sale and a $37.6 million decrease in net loans.
Net loans decreased $37.6 million, or 1.1%, to $3.37 billion at
June 30, 2021 from $3.41 billion at March 31, 2021. The net
decrease in loans for the three months ended June 30, 2021 was
primarily due to decreases in consumer loans of $41.8 million and
commercial and industrial loans of $32.2 million, partially offset
by increases in residential mortgage loans of $34.1 million. The
decrease in commercial and industrial loans is primarily due to
forgiveness of PPP loans during the quarter. Excluding the change
in PPP loans total commercial loans increased $24.2 million,
primarily due to an increase in commercial and industrial loans.
The allowance for loan losses was $51.3 million at June 30, 2021
and $55.4 million at March 31, 2021, the change primarily
reflecting the negative $4.3 million provision for loan losses
recorded in the second quarter.
Total deposits increased $13.4 million, or 0.4%, to $3.69
billion at June 30, 2021 from $3.67 billion at March 31, 2021.
Compared to the prior quarter, non-certificate accounts increased
$27.2 million and term certificate accounts decreased $13.8
million. FHLB borrowings decreased $10.0 million, or 10.3%, to
$87.5 million at June 30, 2021 from $97.5 million at March 31,
2021.
Total stockholders’ equity was $705.5 million at June 30, 2021,
compared to $698.1 million at March 31, 2021 and $684.4 million at
June 30, 2020. During the second quarter, the Company completed a
share repurchase program adopted September 3, 2020 repurchasing
2,920,900 shares of the Company’s common stock at an average cost
of $11.32 per share. The Company adopted a second share repurchase
program on April 16, 2021 to repurchase up to 2,790,903 shares of
the Company’s common stock, or approximately 5% of the Company’s
outstanding shares. The Company repurchased 418,452 shares at an
average cost of $14.41 per share through June 30, 2021, under the
second share repurchase program. The tangible common equity to
tangible assets ratio was 13.91% at June 30, 2021, 13.77% at March
31, 2021, and 13.88% at June 30, 2020. At June 30, 2021, 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 27 full-service branches located in Massachusetts and Rhode
Island, 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, and Maine, and is
licensed to lend in six 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; changes in
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’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)
2021
2021
2020
2020
2020
Assets
Cash and due from banks
$
41,328
$
37,074
$
31,777
$
29,180
$
30,355
Short-term investments
374,319
281,451
174,093
108,338
218,617
Total cash and cash equivalents
415,647
318,525
205,870
137,518
248,972
Securities available for sale, at fair
value
353,848
304,168
276,498
280,308
262,710
Federal Home Loan Bank stock, at cost
7,241
7,572
8,738
11,631
15,786
Asset held for sale
—
—
—
—
8,536
Loans held for sale, at fair value
103,886
210,494
208,612
190,373
158,898
Loans:
Commercial real estate
1,561,873
1,559,056
1,551,265
1,380,071
1,317,145
Commercial construction
107,585
112,187
99,331
211,953
194,549
Commercial and industrial
467,479
499,728
464,393
480,129
456,192
Total commercial loans
2,136,937
2,170,971
2,114,989
2,072,153
1,967,886
Residential real estate
1,096,370
1,062,229
1,105,823
1,130,935
1,151,606
Consumer
186,430
228,279
273,830
312,743
354,530
Loans
3,419,737
3,461,479
3,494,642
3,515,831
3,474,022
Less: Allowance for loan losses
(51,273
)
(55,384
)
(55,395
)
(49,223
)
(36,107
)
Net loans
3,368,464
3,406,095
3,439,247
3,466,608
3,437,915
Mortgage servicing rights, at fair
value
35,955
33,939
24,833
20,159
16,127
Goodwill
69,802
69,802
69,802
69,802
69,802
Other intangible assets
3,723
4,047
4,370
4,694
5,141
Other assets
257,856
251,316
245,645
247,226
241,019
Total assets
$
4,616,422
$
4,605,958
$
4,483,615
$
4,428,319
$
4,464,906
Liabilities and Stockholders'
Equity
Deposits:
Demand deposit accounts
$
800,118
$
777,959
$
689,672
$
650,336
$
642,971
NOW accounts
250,099
224,869
218,584
202,020
199,400
Regular savings and club accounts
1,123,123
1,113,450
998,994
912,017
876,753
Money market deposit accounts
832,006
861,867
866,661
815,644
831,653
Term certificate accounts
682,594
696,438
732,298
785,871
757,897
Total deposits
3,687,940
3,674,583
3,506,209
3,365,888
3,308,674
Short-term borrowed funds
—
—
35,000
95,000
200,000
Long-term borrowed funds
87,479
97,488
114,097
141,106
141,114
Subordinated debt
34,096
34,064
34,033
34,002
33,970
Other liabilities and accrued expenses
101,436
101,750
97,962
98,220
96,693
Total liabilities
3,910,951
3,907,885
3,787,301
3,734,216
3,780,451
Common stock
585
585
584
584
584
Additional paid-in capital
467,194
465,832
464,176
463,531
462,881
Unearned compensation - ESOP
(30,380
)
(30,840
)
(31,299
)
(31,759
)
(32,218
)
Retained earnings
305,831
294,116
277,312
261,304
251,032
Treasury stock
(38,588
)
(31,460
)
(16,644
)
(1,333
)
(721
)
Accumulated other comprehensive income
(loss)
829
(160
)
2,185
1,776
2,897
Total stockholders' equity
705,471
698,073
696,314
694,103
684,455
Total liabilities and stockholders'
equity
$
4,616,422
$
4,605,958
$
4,483,615
$
4,428,319
$
4,464,906
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)
2021
2021
2020
2020
2020
Interest and dividend income:
Interest and fees on loans
$
34,106
$
33,860
$
35,274
$
34,496
$
33,970
Interest on loans held for sale
852
1,324
1,267
1,060
988
Interest on securities
793
585
1,064
1,317
1,424
Other interest and dividend income
136
78
115
175
239
Total interest and dividend income
35,887
35,847
37,720
37,048
36,621
Interest expense:
Interest on deposits
2,302
2,720
3,775
4,520
5,805
Interest on FHLB borrowings
531
552
671
835
845
Interest on subordinated debentures
524
523
524
524
524
Total interest expense
3,357
3,795
4,970
5,879
7,174
Net interest and dividend income
32,530
32,052
32,750
31,169
29,447
Provision(credit) for loan losses
(4,286
)
91
7,608
13,454
10,004
Net interest and dividend income, after
provision for loan losses
36,816
31,961
25,142
17,715
19,443
Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans
14,262
24,802
28,274
34,055
30,862
Changes in mortgage servicing rights fair
value
(2,552
)
3,409
(1,041
)
(193
)
(1,111
)
Other
4,075
4,515
4,522
4,259
4,049
Total mortgage banking income
15,785
32,726
31,755
38,121
33,800
Deposit account fees
4,546
3,852
3,667
3,451
2,969
Income on retirement plan annuities
106
104
106
104
103
Gain on sale and call of securities,
net
—
—
—
—
8
Bank-owned life insurance income
508
493
550
560
554
Other income
758
634
949
2,203
1,143
Total noninterest income
21,703
37,809
37,027
44,439
38,577
Noninterest expenses:
Compensation and benefits
25,146
27,454
27,122
29,839
27,469
Occupancy and equipment
4,702
5,256
4,545
4,581
4,152
Data processing
2,362
2,343
2,235
2,119
2,277
Loan expense
1,250
2,435
2,689
3,167
2,702
Marketing
831
813
640
817
1,057
Professional fees
1,487
1,583
1,252
1,458
1,518
Deposit insurance
332
320
320
310
279
Other expenses
2,488
2,598
2,483
3,409
4,323
Total noninterest expenses
38,598
42,802
41,286
45,700
43,777
Income before income taxes
19,921
26,968
20,883
16,454
14,243
Income tax provision
5,645
7,576
3,283
4,561
3,668
Net income
$
14,276
$
19,392
$
17,600
$
11,893
$
10,575
Earnings per common share:
Basic
$
0.28
$
0.37
$
0.33
$
0.22
$
0.19
Diluted
$
0.27
$
0.37
$
0.33
$
0.22
$
0.19
Weighted average shares outstanding:
Basic
51,778,293
52,537,409
53,947,868
54,465,339
54,450,146
Diluted
52,650,071
53,000,830
53,973,737
54,465,339
54,450,146
HarborOne Bancorp,
Inc.
Consolidated Statements of Net
Income
(Unaudited)
For the Six Months Ended June
30,
(dollars in thousands, except share
data)
2021
2020
$ Change
% Change
Interest and dividend income:
Interest and fees on loans
$
67,966
$
67,995
$
(29
)
(0.0
)%
Interest on loans held for sale
2,176
1,565
611
39.0
Interest on securities
1,378
3,232
(1,854
)
(57.4
)
Other interest and dividend income
214
998
(784
)
(78.6
)
Total interest and dividend income
71,734
73,790
(2,056
)
(2.8
)
Interest expense:
Interest on deposits
5,022
14,498
(9,476
)
(65.4
)
Interest on FHLB borrowings
1,083
2,098
(1,015
)
(48.4
)
Interest on subordinated debentures
1,047
1,047
—
0.0
Total interest expense
7,152
17,643
(10,491
)
(59.5
)
Net interest and dividend income
64,582
56,147
8,435
15.0
Provision(credit) for loan losses
(4,195
)
13,753
(17,948
)
(130.5
)
Net interest and dividend income, after
provision for loan losses
68,777
42,394
26,383
62.2
Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans
39,064
43,140
(4,076
)
(9.4
)
Changes in mortgage servicing rights fair
value
857
(5,498
)
6,355
115.6
Other
8,590
6,392
2,198
34.4
Total mortgage banking income
48,511
44,034
4,477
10.2
Deposit account fees
8,398
6,900
1,498
21.7
Income on retirement plan annuities
210
204
6
2.9
Gain on sale and call of securities,
net
—
2,533
(2,533
)
(100.0
)
Bank-owned life insurance income
1,001
1,105
(104
)
(9.4
)
Other income
1,392
2,439
(1,047
)
(42.9
)
Total noninterest income
59,512
57,215
2,297
4.0
Noninterest expenses:
Compensation and benefits
52,600
48,654
3,946
8.1
Occupancy and equipment
9,958
8,715
1,243
14.3
Data processing
4,705
4,457
248
5.6
Loan expense
3,685
3,955
(270
)
(6.8
)
Marketing
1,644
1,933
(289
)
(15.0
)
Professional fees
3,070
2,746
324
11.8
Deposit insurance
652
550
102
18.5
Other expenses
5,086
7,927
(2,841
)
(35.8
)
Total noninterest expenses
81,400
78,937
2,463
3.1
Income before income taxes
46,889
20,672
26,217
126.8
Income tax provision
13,221
5,373
7,848
146.1
Net income
$
33,668
$
15,299
$
18,369
120.1
%
Earnings per common share:
Basic
$
0.65
$
0.28
Diluted
$
0.64
$
0.28
Weighted average shares outstanding:
Basic
52,155,754
54,421,306
Diluted
52,823,354
54,421,306
HarborOne Bancorp,
Inc.
Average Balances /
Yields
(Unaudited)
Quarters Ended
June 30, 2021
March 31, 2021
June 30, 2020
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)
$
325,205
$
793
0.98
%
$
271,357
$
585
0.87
%
$
240,025
$
1,430
2.40
%
Other interest-earning assets
397,979
136
0.14
180,526
78
0.18
222,840
239
0.43
Loans held for sale
115,240
852
2.97
193,426
1,324
2.78
119,047
988
3.34
Loans
Commercial loans (2)
2,152,105
22,079
4.11
2,161,076
20,780
3.90
1,872,349
18,196
3.91
Residential real estate loans (2)
1,064,481
9,747
3.67
1,084,292
10,340
3.87
1,123,896
11,811
4.23
Consumer loans (2)
205,856
2,280
4.44
253,014
2,740
4.39
372,929
3,963
4.27
Total loans
3,422,442
34,106
4.00
3,498,382
33,860
3.93
3,369,174
33,970
4.06
Total interest-earning assets
4,260,866
35,887
3.38
4,143,691
35,847
3.51
3,951,086
36,627
3.73
Noninterest-earning assets
339,438
330,257
334,452
Total assets
$
4,600,304
$
4,473,948
$
4,285,538
Interest-bearing liabilities:
Savings accounts
$
1,118,494
461
0.17
$
1,058,820
537
0.21
$
842,560
834
0.40
NOW accounts
231,075
41
0.07
212,282
37
0.07
187,560
33
0.07
Money market accounts
853,586
417
0.20
861,518
560
0.26
826,939
1,207
0.59
Certificates of deposit
589,964
1,229
0.84
608,089
1,444
0.96
730,756
3,472
1.91
Brokered deposits
100,000
154
0.62
100,000
142
0.58
66,701
259
1.56
Total interest-bearing deposits
2,893,119
2,302
0.32
2,840,709
2,720
0.39
2,654,516
5,805
0.88
FHLB advances
96,823
531
2.20
102,383
552
2.19
258,679
845
1.31
Subordinated debentures
34,080
524
6.17
34,048
523
6.23
33,951
524
6.21
Total borrowings
130,903
1,055
3.23
136,431
1,075
3.20
292,630
1,369
1.88
Total interest-bearing liabilities
3,024,022
3,357
0.45
2,977,140
3,795
0.52
2,947,146
7,174
0.98
Noninterest-bearing
liabilities:
Noninterest-bearing deposits
784,521
706,274
585,715
Other noninterest-bearing liabilities
88,577
93,380
72,808
Total liabilities
3,897,120
3,776,794
3,605,669
Total stockholders' equity
703,184
697,154
679,869
Total liabilities and stockholders'
equity
$
4,600,304
$
4,473,948
$
4,285,538
Tax equivalent net interest income
32,530
32,052
29,453
Tax equivalent interest rate spread
(3)
2.93
%
2.99
%
2.75
%
Less: tax equivalent adjustment
—
—
6
Net interest income as reported
$
32,530
$
32,052
$
29,447
Net interest-earning assets (4)
$
1,236,844
$
1,166,551
$
1,003,940
Net interest margin (5)
3.06
%
3.14
%
3.00
%
Tax equivalent effect
—
—
—
Net interest margin on a fully tax
equivalent basis
3.06
%
3.14
%
3.00
%
Average interest-earning assets to average
interest-bearing liabilities
140.90
%
139.18
%
134.06
%
Supplemental information:
Total deposits, including demand
deposits
$
3,677,640
$
2,302
$
3,546,983
$
2,720
$
3,240,231
$
5,805
Cost of total deposits
0.25
%
0.31
%
0.72
%
Total funding liabilities, including
demand deposits
$
3,808,543
$
3,357
$
3,683,414
$
3,795
$
3,532,861
$
7,174
Cost of total funding liabilities
0.35
%
0.42
%
0.82
%
(1) Includes securities available for
sale. 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 quarter ended June 30, 2020 was 2.40%.
(2) Includes nonaccruing loan balances and
interest received on such loans.
(3) Tax equivalent 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, 2021
June 30, 2020
Average
Average
Outstanding
Yield/
Outstanding
Yield/
Balance
Interest
Cost
Balance
Interest
Cost
(dollars in thousands)
Interest-earning assets:
Investment securities (1)
$
298,430
$
1,378
0.93
%
$
257,828
$
3,252
2.54
%
Other interest-earning assets
289,853
214
0.15
204,730
998
0.98
Loans held for sale
154,117
2,176
2.85
90,297
1,565
3.48
Loans
Commercial loans (2)
2,156,566
42,859
4.01
1,760,008
36,319
4.15
Residential real estate loans (2)
1,074,332
20,087
3.77
1,112,036
23,355
4.22
Consumer loans (2)
229,304
5,020
4.41
394,123
8,321
4.25
Total loans
3,460,202
67,966
3.96
3,266,167
67,995
4.19
Total interest-earning assets
4,202,602
71,734
3.44
3,819,022
73,810
3.89
Noninterest-earning assets
403,990
324,323
Total assets
$
4,606,592
$
4,143,345
Interest-bearing liabilities:
Savings accounts
$
1,088,822
998
0.18
$
764,295
2,132
0.56
NOW accounts
221,731
78
0.07
173,130
64
0.07
Money market accounts
857,530
977
0.23
831,048
3,790
0.92
Certificates of deposit
598,977
2,673
0.90
762,819
7,829
2.06
Brokered deposits
100,000
296
0.60
79,445
683
1.73
Total interest-bearing deposits
2,867,060
5,022
0.35
2,610,737
14,498
1.12
FHLB advances
99,588
1,083
2.19
249,990
2,098
1.69
Subordinated debentures
34,063
1,047
6.20
33,935
1,047
6.20
Total borrowings
133,651
2,130
3.21
283,925
3,145
2.23
Total interest-bearing liabilities
3,000,711
7,152
0.48
2,894,662
17,643
1.23
Noninterest-bearing
liabilities:
Noninterest-bearing deposits
745,613
502,668
Other noninterest-bearing liabilities
155,640
70,261
Total liabilities
3,901,964
3,467,591
Total stockholders' equity
704,628
675,754
Total liabilities and stockholders'
equity
$
4,606,592
$
4,143,345
Tax equivalent net interest income
64,582
56,167
Tax equivalent interest rate spread
(3)
2.96
%
2.66
%
Less: tax equivalent adjustment
—
20
Net interest income as reported
$
64,582
$
56,147
Net interest-earning assets (4)
$
1,201,891
$
924,360
Net interest margin (5)
3.10
%
2.96
%
Tax equivalent effect
—
—
Net interest margin on a fully tax
equivalent basis
3.10
%
2.96
%
Average interest-earning assets to average
interest-bearing liabilities
140.05
%
131.93
%
Supplemental information:
Total deposits, including demand
deposits
$
3,612,673
$
5,022
$
3,113,405
$
14,498
Cost of total deposits
0.28
%
0.94
%
Total funding liabilities, including
demand deposits
$
3,746,324
$
7,152
$
3,397,330
$
17,643
Cost of total funding liabilities
0.38
%
1.04
%
(1) 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% for the six months ended June 30, 2020.
(2) Includes nonaccruing loan balances and
interest received on such loans.
(3) Tax equivalent 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, 2021
March 31, 2021
December 31, 2020
September 30, 2020
June 30, 2020
(in thousands)
Interest-earning assets:
Investment securities (1)
$
325,205
$
271,357
$
271,511
$
269,477
$
240,025
Other interest-earning assets
397,979
180,526
84,969
121,384
222,840
Loans held for sale
115,240
193,426
178,980
139,418
119,047
Loans
Commercial loans (2)
2,152,105
2,161,076
2,112,377
2,017,492
1,872,349
Residential real estate loans (2)
1,064,481
1,084,292
1,106,286
1,135,947
1,123,896
Consumer loans (2)
205,856
253,014
292,665
333,623
372,929
Total loans
3,422,442
3,498,382
3,511,328
3,487,062
3,369,174
Total interest-earning assets
4,260,866
4,143,691
4,046,788
4,017,341
3,951,086
Noninterest-earning assets
339,438
330,257
317,663
333,444
334,452
Total assets
$
4,600,304
$
4,473,948
$
4,364,451
$
4,350,785
$
4,285,538
Interest-bearing liabilities:
Savings accounts
$
1,118,494
$
1,058,820
$
968,766
$
897,751
$
842,560
NOW accounts
231,075
212,282
205,845
199,982
187,560
Money market accounts
853,586
861,518
840,674
825,732
826,939
Certificates of deposit
589,964
608,089
649,919
684,002
730,756
Brokered deposits
100,000
100,000
109,788
139,887
66,701
Total interest-bearing deposits
2,893,119
2,840,709
2,774,992
2,747,354
2,654,516
FHLB advances
96,823
102,383
119,763
149,750
258,679
Subordinated debentures
34,080
34,048
34,015
33,983
33,951
Total borrowings
130,903
136,431
153,778
183,733
292,630
Total interest-bearing liabilities
3,024,022
2,977,140
2,928,770
2,931,087
2,947,146
Noninterest-bearing
liabilities:
Noninterest-bearing deposits
784,521
706,274
656,227
641,353
585,715
Other noninterest-bearing liabilities
88,577
93,380
84,387
89,319
72,808
Total liabilities
3,897,120
3,776,794
3,669,384
3,661,759
3,605,669
Total stockholders' equity
703,184
697,154
695,067
689,026
679,869
Total liabilities and stockholders'
equity
$
4,600,304
$
4,473,948
$
4,364,451
$
4,350,785
$
4,285,538
Annualized Yield Trend -
Quarters Ended
June 30, 2021
March 31, 2021
December 31, 2020
September 30, 2020
June 30, 2020
Interest-earning assets:
Investment securities (1)
0.98
%
0.87
%
1.56
%
1.95
%
2.40
%
Other interest-earning assets
0.14
%
0.18
%
0.54
%
0.57
%
0.43
%
Loans held for sale
2.97
%
2.78
%
2.82
%
3.02
%
3.34
%
Commercial loans (2)
4.11
%
3.90
%
3.92
%
3.76
%
3.91
%
Residential real estate loans (2)
3.67
%
3.87
%
4.04
%
4.14
%
4.23
%
Consumer loans (2)
4.44
%
4.39
%
4.36
%
4.29
%
4.27
%
Total loans
4.00
%
3.93
%
4.00
%
3.94
%
4.06
%
Total interest-earning assets
3.38
%
3.51
%
3.71
%
3.67
%
3.73
%
Interest-bearing liabilities:
Savings accounts
0.17
%
0.21
%
0.26
%
0.26
%
0.40
%
NOW accounts
0.07
%
0.07
%
0.08
%
0.08
%
0.07
%
Money market accounts
0.20
%
0.26
%
0.34
%
0.36
%
0.59
%
Certificates of deposit
0.84
%
0.96
%
1.35
%
1.68
%
1.91
%
Brokered deposits
0.62
%
0.58
%
0.72
%
0.72
%
1.56
%
Total interest-bearing deposits
0.32
%
0.39
%
0.54
%
0.65
%
0.88
%
FHLB advances
2.20
%
2.19
%
2.23
%
2.22
%
1.31
%
Subordinated debentures
6.17
%
6.23
%
6.13
%
6.13
%
6.21
%
Total borrowings
3.23
%
3.20
%
3.09
%
2.94
%
1.88
%
Total interest-bearing liabilities
0.45
%
0.52
%
0.68
%
0.80
%
0.98
%
(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):
2021
2021
2020
2020
2020
(dollars in thousands)
Return on average assets (ROAA)
1.24
%
1.73
%
1.61
%
1.09
%
0.99
%
Return on average equity (ROAE)
8.12
%
11.13
%
10.13
%
6.90
%
6.22
%
Total noninterest expense
$
38,598
$
42,802
$
41,286
$
45,700
$
43,777
Less: Amortization of other intangible
assets
324
324
324
447
447
Total adjusted noninterest expense
$
38,274
$
42,478
$
40,962
$
45,253
$
43,330
Net interest and dividend income
$
32,530
$
32,052
$
32,750
$
31,169
$
29,447
Total noninterest income
21,703
37,809
37,027
44,439
38,577
Total revenue
$
54,233
$
69,861
$
69,777
$
75,608
$
68,024
Efficiency ratio (1)
70.57
%
60.80
%
58.70
%
59.85
%
63.70
%
(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
2021
2021
2020
2020
2020
(dollars in thousands)
Total nonperforming assets
$
32,732
$
32,886
$
34,696
$
40,925
$
38,599
Nonperforming assets to total assets
0.71
%
0.71
%
0.77
%
0.93
%
0.86
%
Allowance for loan losses to total
loans
1.50
%
1.60
%
1.59
%
1.40
%
1.04
%
Net charge-offs
$
(175
)
$
102
$
1,436
$
338
$
286
Annualized net charge-offs/average
loans
(0.02
)%
0.01
%
0.16
%
0.04
%
0.03
%
Allowance for loan losses to nonperforming
loans
158.10
%
171.20
%
162.40
%
122.86
%
94.86
%
HarborOne Bancorp,
Inc.
Selected Financial
Highlights
(Unaudited)
June 30,
March 31,
December 31,
September 30,
June 30,
Capital and Share Related
2021
2021
2020
2020
2020
(dollars in thousands, except share
data)
Common stock outstanding
55,735,623
56,228,762
57,205,458
58,342,464
58,418,021
Book value per share
$
12.66
$
12.41
$
12.17
$
11.90
$
11.72
Tangible common equity:
Total stockholders' equity
$
705,471
$
698,073
$
696,314
$
694,103
$
684,455
Less: Goodwill
69,802
69,802
69,802
69,802
69,802
Less: Other intangible assets (1)
3,723
4,047
4,370
4,694
5,141
Tangible common equity
$
631,946
$
624,224
$
622,142
$
619,607
$
609,512
Tangible book value per share (2)
$
11.34
$
11.10
$
10.88
$
10.62
$
10.43
Tangible assets:
Total assets
$
4,616,422
$
4,605,958
$
4,483,615
$
4,428,319
$
4,464,906
Less: Goodwill
69,802
69,802
69,802
69,802
69,802
Less: Other intangible assets
3,723
4,047
4,370
4,694
5,141
Tangible assets
$
4,542,897
$
4,532,109
$
4,409,443
$
4,353,823
$
4,389,963
Tangible common equity / tangible assets
(3)
13.91
%
13.77
%
14.11
%
14.23
%
13.88
%
(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 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,
2021
2021
2020
2021
2021
2020
(in thousands)
Net interest and dividend income
$
855
$
1,250
$
739
$
32,134
$
31,248
$
29,139
Provision for loan losses
—
—
—
(4,286
)
91
10,004
Net interest and dividend income, after
provision for loan losses
855
1,250
739
36,420
31,157
19,135
Mortgage banking income:
Gain on sale of mortgage loans
14,262
24,802
30,862
—
—
—
Intersegment gain (loss)
910
662
1,399
(910
)
(662
)
(1,399
)
Changes in mortgage servicing rights fair
value
(2,133
)
3,123
(621
)
(419
)
286
(490
)
Other
3,799
4,215
3,703
276
300
346
Total mortgage banking income (loss)
16,838
32,802
35,343
(1,053
)
(76
)
(1,543
)
Other noninterest income (loss)
20
(8
)
(11
)
5,898
5,091
4,788
Total noninterest income
16,858
32,794
35,332
4,845
5,015
3,245
Noninterest expense
14,101
18,057
18,212
24,128
24,463
25,218
Income before income taxes
3,612
15,987
17,859
17,137
11,709
(2,838
)
Provision for income taxes
1,013
4,333
3,878
4,863
3,435
27
Net income
$
2,599
$
11,654
$
13,981
$
12,274
$
8,274
$
(2,865
)
HarborOne Bancorp,
Inc.
COVID Loans at Risk as of June
30, 2021
(Unaudited)
At Risk Sectors
Percent
Total
at risk
at risk
Total
sector
Retail
Office Space
Hotels
Restaurants
Recreation
sectors
loans
to total
(dollars in thousands)
Commercial real estate
$
221,445
$
194,240
$
201,158
$
15,074
$
14,653
$
646,570
$
1,561,873
41.4
%
Commercial and industrial
26,799
15,467
2,113
28,605
4,191
77,175
467,479
16.5
Commercial construction
16,341
854
8,833
14,878
—
40,906
107,585
38.0
Total
$
264,585
$
210,561
$
212,104
$
58,557
$
18,844
$
764,651
$
2,136,937
35.8
%
Outstanding principal, active commercial
deferrals
$
—
$
—
$
7,740
$
3,265
$
—
$
11,005
$
2,136,937
0.5
%
Outstanding principal, expired and
delinquent commercial deferrals
$
—
$
—
$
254
$
—
$
—
$
254
$
2,136,937
0.0
%
PPP loans, net of fees
$
477
$
—
$
87
$
1,764
$
94
$
2,422
$
101,114
2.4
%
Nonaccrual loans
$
387
$
—
$
12,154
$
4
$
—
$
12,545
$
32,434
38.7
%
% Active
deferrals to
Deferrals
Deferrals
Total
total
expired &
expired &
Active
Total
outstanding
outstanding
(dollars in thousands)
paying
delinquent
deferrals
deferrals
loans
loans
#
$
#
$
#
$
#
$
Commercial real estate
78
$
245,180
—
$
—
3
$
11,005
81
$
256,185
$
1,561,873
0.7
%
Commercial and industrial
111
41,731
2
261
—
—
113
41,992
467,479
—
Commercial construction
—
—
—
—
—
—
—
—
107,585
—
Total commercial loans
189
$
286,911
2
$
261
3
$
11,005
194
$
298,177
$
2,136,937
0.5
%
1-4 Family
315
$
36,332
6
$
1,372
8
$
2,871
329
$
40,575
$
927,782
0.3
%
Home Equity
20
929
—
—
—
—
20
929
134,688
—
Residential construction
—
—
—
—
—
—
—
—
33,900
—
Total residential real estate
335
$
37,261
6
$
1,372
8
$
2,871
349
$
41,504
$
1,096,370
0.3
%
Consumer
789
$
8,144
12
$
301
3
$
22
804
$
8,467
$
186,430
0.0
Total loans
1,313
$
332,316
20
$
1,934
14
$
13,898
1,347
$
348,148
$
3,419,737
0.4
%
HarborOne Bancorp,
Inc.
COVID Loans at Risk as of June
30, 2021
(Unaudited)
Active deferrals expiring by
quarter
(dollars in thousands)
9/30/2021
12/31/2021
3/31/2022
6/30/2022
Total
Commercial real estate
$
3,265
$
7,740
$
—
$
—
$
11,005
Commercial and industrial
—
—
—
—
—
Commercial construction
—
—
—
—
—
Total commercial loans
$
3,265
$
7,740
$
—
$
—
$
11,005
1-4 Family
$
2,658
$
213
$
—
$
—
$
2,871
Home equity
—
—
—
—
—
Residential construction
—
—
—
—
—
Total residential real estate
$
2,658
$
213
$
—
$
—
$
2,871
Consumer
$
10
$
12
$
—
$
—
$
22
Total loans
$
5,933
$
7,965
$
—
$
—
$
13,898
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210727005692/en/
Linda Simmons, EVP, CFO 508 895-1379
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