EX-99.1 2 ex-99d1.htm EX-99.1 hone_Exhibit_99.1

Exhibit 99.1

C:\Users\cviveiros\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\I4C6SES3\HarborOne Bancorp Logo.jpg

 

HarborOne Bancorp, Inc. Announces 2019 First Quarter Earnings

Contact: Linda Simmons, SVP, CFO

Brockton, Massachusetts (April 18, 2019): HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $2.1 million, or $0.07 basic and diluted earnings per share for the first quarter of 2019, compared to $111,000, or $0.00 per basic and diluted share, for the prior quarter and $2.3 million, or $0.07 per basic and diluted share, for the same quarter prior year.

 

Selected highlights:

 

·

Commercial loan growth of $37.2 million to $1.4 billion

·

Deposits up 6% quarter over quarter to $2.8 billion, solid growth in core accounts

·

Asset quality for the quarter remains strong

·

Opening of Stoughton, Massachusetts branch in March 2019

 

“Our continued commitment to commercial assets drove core earnings with an increase of interest and fees on loans, along with other income from fees generated by the commercial business,” said James W. Blake, CEO. “Volatility in the capital markets resulted in a negative mark to market of $2.2 million on mortgage servicing rights and first quarter earnings were also negatively impacted by the operating loss at HarborOne Mortgage. The residential mortgage business as a whole has experienced lower income and spreads and we are actively managing the expense side of the business with $1.2 million in annual savings on a recent additional layoff. Although HarborOne Mortgage got off to a slow start this year, recent mortgage application volume spurred by the spring housing market and lower mortgage rates indicates an improved outlook in the second quarter of 2019.”

 

Net Interest Income

The Company’s net interest and dividend income was $26.0 million for the quarter ended March 31, 2019,  down  $760,000, or 2.8%, from $26.8 million for the quarter ended December 31, 2018 and up $5.9 million, or 29.3%, from $20.1 million for the quarter ended March 31, 2018. The tax-equivalent interest rate spread and net interest margin were 2.92% and 3.19%, respectively, for the quarter ended March 31, 2019 compared to 3.00% and 3.26%, respectively, for the quarter ended December 31, 2018 and 3.07% and 3.26%, respectively, for the quarter ended March 31, 2018.

 

The decrease in net interest income from the previous quarter reflects a $130,000, or 0.4%, increase in total interest and dividend income offset by an increase of $890,000, or 8.8% in total interest expense. Compared to the prior quarter, interest and dividend income was relatively flat. Interest on loans in the first quarter of 2019 includes $670,000 in accretion income of the fair value discount on loans acquired from Coastway Bancorp, Inc. (“Coastway”) in October 2018, and $106,000 in prepayment penalties on commercial loans. Accretion income and prepayment penalties in the previous quarter were $900,000 and $226,000, respectively. The yield on loans was 4.67% for the quarter ended March 31, 2019 compared to 4.63% for the quarter ended December 31, 2018. The increase in interest expense is primarily due to an increase in higher cost money market accounts driving a 16 basis point increase in the cost of interest-bearing deposits. The increase was partially offset by a decrease in average FHLB advances of $45.5 million, tempered by an 18 basis point increase in the cost of those funds. 

 

The increase in net interest income from the prior year quarter reflects a $12.4 million, or 50.1%, increase in total interest and dividend income and an increase of $6.5 million, or 141.7%, in total interest expense. The increases in total interest and dividend income reflect an increase in the yield on loans to 4.67% from 4.13%, primarily driven by growth due to the Coastway acquisition as well as organic commercial loan growth and higher rates on commercial loans. This is partially offset by the increase in total interest expense primarily due to an increase in average interest-bearing deposits of $578.6 million with a 62 basis point increase in the cost of those funds, due to deposits acquired from Coastway as well as organic deposit growth in money market and term certificate of deposits and a $139.1 million increase in average FHLB borrowings with a 69 basis point increase in the cost of those funds. Additionally the Company issued $35.0 million in subordinated notes in the third quarter of 2018.

 

Noninterest Income

Noninterest income decreased $1.8 million, or 15.5%, to $9.8 million for the quarter ended March 31, 2019 from the quarter ended December 31, 2018. The decrease is primarily due to a decrease in mortgage banking income of $1.5 million and a net decrease of $316,000 in the other noninterest income categories. Results of HarborOne Mortgage, LLC (“HarborOne Mortgage”) were down compared to the fourth quarter.  Lower mortgage banking income reflects industry wide conditions, including lack of inventory and lower refinancing activity due to higher mortgage rates during the quarter. Additionally the decrease in the 10-year Treasury Constant

 

Maturity rate negatively impacted the fair value of the mortgage servicing rights resulting in a $2.2 million decrease in their fair value. The net decrease in the other noninterest income categories compared to the prior quarter is primarily due to a decrease of $750,000 in bank-owned life insurance income and a $229,000 decrease in deposit account fees partially offset by an increase of $673,000 in other income. The increase in other income reflects $613,000 in swap fee income as compared to $124,000 in the previous quarter. The quarter ended December 31, 2018 included a $746,000 death benefit in bank-owned life insurance income with no such benefit in the first quarter of 2019.

 

Noninterest income decreased $1.5 million or 13.3%, as compared to the quarter ended March 31, 2018. Mortgage banking income decreased $2.8 million, or 38.2%, partially offset by a net increase in the other noninterest income categories of $1.3 million.  Mortgage banking income decreased compared to the prior year quarter due to lower mortgage originations, primarily as a result of higher residential mortgage interest rates, low housing inventories and reduced refinancing volume. Additionally, mortgage servicing rights fair value decreased $2.2 million for the quarter ended March 31, 2019 as compared to an increase of $1.0 million in the quarter ended March 31, 2018.  The net increase in other noninterest income categories compared to prior year quarter is primarily due to an  $811,000 increase in deposit account fee income reflecting the addition of Coastway accounts and an increase of $466,000 in other income primarily from swap fee income and other commercial loan fees.

 

Noninterest Expense

Noninterest expenses were $32.6 million for the quarter ended March 31, 2019, a decrease of $4.0 million, or 10.9%, from the quarter ended December 31, 2018 which included merger expenses of $3.8 million as compared to none in the first quarter of 2019.  

 

Other significant changes in noninterest expense included an $817,000 decrease in compensation and benefits partially offset by a $499,000 increase in occupancy and equipment expense. The decrease in compensation and benefits is due to a decrease in commission expense of $990,000 primarily due to the decrease in origination volume at HarborOne Mortgage and a $1.0 million decrease in management incentive plan expense partially offset by an increase in supplemental employee retirement plan expense of $535,000.  Also impacting compensation and benefits in the first quarter of 2019 were severance payments $295,000 reflecting continued efforts to right size HarborOne Mortgage in response to economic conditions. The occupancy and equipment expense increase was primarily due to property maintenance expense increases due to the additional Coastway properties.

 

Total noninterest expenses increased $5.0 million, or 18.1%, from the quarter ended March 31, 2018. Compensation and benefits increased $2.9 million, occupancy and equipment expense increased $1.2 million, other expenses increased $802,000 and data processing expense increased $493,000.  The increases primarily reflect the acquisition of Coastway and expenses related to the new Stoughton branch and Boston commercial loan office.  

 

Income Tax Provision

The effective tax rate was 14.7% for the quarter ended March 31, 2019, compared to 68.0% for the quarter ended December 31, 2018 and 26.5% for the quarter ended March 31, 2018. The effective tax rate for the quarter ended December 31, 2018 was impacted by nondeductible merger expenses, while the quarter ended March 31, 2019 was impacted by the 2014 Massachusetts state tax refund of $320,000 recognized in the quarter. 

 

Asset Quality

The Company recorded a provision for loan losses of $857,000 for the quarter ended March 31, 2019,  compared to $1.5 million for the quarter ended December 31, 2018 and $808,000 for the quarter ended March 31, 2018. The increase in the provision for the quarter ended December 31, 2018 is primarily due to commercial and construction loan growth. Also contributing to the higher provision for the quarter ended December 31, 2018 was $18.1 million in loans that were downgraded to a watch risk rating and resulted in an increase in the allocated reserves of $439,000. Generally increases in loan loss provisions each quarter were due to growth in the commercial loan portfolio. Changes in the provision for loan losses are based on management’s assessment of loan portfolio growth and composition changes, historical charge-off trends, and ongoing evaluation of credit quality and current economic conditions.

 

Net charge-offs totaled $230,000 for the quarter ended March 31, 2019, or 0.03%, of average loans outstanding on an annualized basis, compared to $287,000, or 0.04% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2018 and $434,000, or 0.08% of average loans outstanding on an annualized basis, for the quarter ended March 31, 2018. 

 

The allowance for loan losses was $21.3 million, or 0.71%, of total loans at March 31, 2019, compared to $20.7 million, or 0.69%, of total loans at December 31, 2018 and $18.9 million, or 0.84%, of total loans at March 31, 2018. The decrease from March 31, 2018 reflects the loans acquired from Coastway. In accordance with generally accepted accounting principles for acquisition accounting, the loans acquired through the acquisition of Coastway were recorded at fair value; accordingly, there was no allowance for loan losses associated with the acquired loans.

 

Total nonperforming assets were $19.3 million at March 31, 2019 compared to $18.5 million at December 31, 2018 and $17.2 million at March 31, 2018. Nonperforming assets as a percentage of total assets were 0.53% at March 31, 2019, 0.51% at December 31, 2018 and 0.63% at March 31, 2018. The Company continues to minimize nonperforming assets through diligent collection efforts, prudent workout arrangements and strong underwriting.

 

Balance Sheet

Total assets increased $2.9 million, or 0.1%, to $3.66 billion at March 31, 2019 from $3.65 billion at December 31, 2018. 

 

Net loans increased $14.4 million, or 0.5%, to $2.98 billion at March 31, 2019 from $2.96 billion at December 31, 2018. The net increase in loans for the three months ended March 31, 2019 was primarily due increases in commercial real estate loans of $18.0 million and commercial loans of $22.4 million, partially offset by decreases in commercial construction loans of $3.2 million and consumer loans of $22.1 million.   Loans held for sale decreased $9.7 million, or 22.9%, to $32.4 million at March 31, 2019 from $42.1 million at December 31, 2018. 

 

Total deposits increased $151.6 million, or 5.6%, to $2.84 billion at March 31, 2019 from $2.69 billion at December 31, 2018. Compared to the prior quarter,  non-certificate accounts increased $117.4 million, brokered deposits increased $40.4 million and term certificate accounts decreased $6.2 million. FHLB borrowings were $355.9 million at March 31, 2019 and $519.9 million at December 31, 2018.

 

Total stockholders’ equity was $363.4 million at March 31, 2019 compared to $357.6 million at December 31, 2018 and $344.9 million at March 31, 2018.  The tangible common equity to tangible assets ratio was 7.99% at March 31, 2019,  7.81% at December 31, 2018 and 12.17% at March 31, 2018.  At March 31, 2019, the Company and the Bank exceed all regulatory capital requirements.

 

About HarborOne Bancorp, Inc.

HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, the largest co-operative bank in New England. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 24 full-service branches located in Massachusetts and Rhode Island,  one limited service branch and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. The Bank also provides a range of educational services through “HarborOne U,” with classes on small business, financial literacy and personal enrichment at two campuses located adjacent to our Brockton and Mansfield locations. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, is a full-service mortgage lender with  34 offices in Massachusetts, Rhode Island, New Hampshire, Maine, and New Jersey and is also licensed to lend in five additional states.

 

Forward Looking Statements

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

 

Use of Non-GAAP Measures

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

 

HarborOne Bancorp, Inc.

Consolidated Balance Sheet Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    March 31,    

 

December  31,

 

September  30,

 

      June 30,      

 

    March 31,    

(in thousands)

    

2019

    

2018

    

2018

    

2018

    

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

  

 

 

  

    

 

  

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

25,227

 

$

27,686

 

$

18,478

 

$

20,232

 

$

15,205

Short-term investments

 

 

76,328

 

 

77,835

 

 

76,619

 

 

112,264

 

 

92,105

Total cash and cash equivalents

 

 

101,555

 

 

105,521

 

 

95,097

 

 

132,496

 

 

107,310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

219,966

 

 

209,293

 

 

191,847

 

 

185,702

 

 

182,173

Securities held to maturity, at amortized cost

 

 

41,104

 

 

44,688

 

 

47,371

 

 

48,251

 

 

46,095

Federal Home Loan Bank stock, at cost

 

 

16,134

 

 

24,969

 

 

13,263

 

 

15,310

 

 

13,538

Loans held for sale, at fair value

 

 

32,449

 

 

42,107

 

 

155,268

 

 

71,017

 

 

34,129

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

1,115,424

 

 

1,115,456

 

 

661,755

 

 

768,537

 

 

774,083

Commercial real estate

 

 

952,404

 

 

934,420

 

 

788,561

 

 

726,276

 

 

687,121

Commercial construction

 

 

158,504

 

 

161,660

 

 

129,796

 

 

150,710

 

 

133,227

Total mortgage loans on real estate

 

 

2,226,332

 

 

2,211,536

 

 

1,580,112

 

 

1,645,523

 

 

1,594,431

Commercial

 

 

299,658

 

 

277,271

 

 

139,616

 

 

132,293

 

 

111,013

Consumer

 

 

469,346

 

 

491,445

 

 

498,417

 

 

516,897

 

 

521,634

Loans

 

 

2,995,336

 

 

2,980,252

 

 

2,218,145

 

 

2,294,713

 

 

2,227,078

Less: Allowance for loan losses

 

 

(21,282)

 

 

(20,655)

 

 

(19,440)

 

 

(19,244)

 

 

(18,863)

Net deferred loan costs

 

 

5,193

 

 

5,255

 

 

5,677

 

 

5,982

 

 

6,075

Net loans

 

 

2,979,247

 

 

2,964,852

 

 

2,204,382

 

 

2,281,451

 

 

2,214,290

Mortgage servicing rights, at fair value

 

 

20,231

 

 

22,217

 

 

23,748

 

 

22,832

 

 

22,696

Goodwill

 

 

69,635

 

 

70,088

 

 

13,660

 

 

13,629

 

 

13,565

Intangible assets

 

 

7,739

 

 

8,379

 

 

66

 

 

88

 

 

110

Other assets

 

 

167,936

 

 

161,007

 

 

108,098

 

 

108,938

 

 

101,671

Total assets

 

$

3,655,996

 

$

3,653,121

 

$

2,852,800

 

$

2,879,714

 

$

2,735,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and demand deposit accounts

 

$

574,379

 

$

556,517

 

$

432,628

 

$

429,397

 

$

419,776

Regular savings and club accounts

 

 

497,697

 

 

482,088

 

 

327,030

 

 

403,732

 

 

378,818

Money market deposit accounts

 

 

842,824

 

 

758,933

 

 

674,657

 

 

681,524

 

 

701,360

Brokered deposits

 

 

117,940

 

 

77,508

 

 

66,831

 

 

79,396

 

 

70,176

Term certificate accounts

 

 

803,805

 

 

810,015

 

 

684,495

 

 

608,453

 

 

557,082

Total deposits

 

 

2,836,645

 

 

2,685,061

 

 

2,185,641

 

 

2,202,502

 

 

2,127,212

Short-term borrowed funds

 

 

126,000

 

 

290,000

 

 

25,000

 

 

70,000

 

 

 —

Long-term borrowed funds

 

 

229,935

 

 

229,936

 

 

206,187

 

 

217,438

 

 

226,364

Subordinated debt

 

 

33,812

 

 

33,799

 

 

33,855

 

 

 —

 

 

 —

Other liabilities and accrued expenses

 

 

66,156

 

 

56,751

 

 

48,772

 

 

41,198

 

 

37,144

Total liabilities

 

 

3,292,548

 

 

3,295,547

 

 

2,499,455

 

 

2,531,138

 

 

2,390,720

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

327

 

 

327

 

 

327

 

 

327

 

 

327

Additional paid-in capital

 

 

153,326

 

 

152,156

 

 

150,732

 

 

150,063

 

 

148,559

Unearned compensation - ESOP

 

 

(9,942)

 

 

(10,091)

 

 

(10,239)

 

 

(10,388)

 

 

(10,536)

Retained earnings

 

 

221,155

 

 

219,088

 

 

218,977

 

 

213,049

 

 

209,946

Treasury stock

 

 

(1,548)

 

 

(1,548)

 

 

(1,548)

 

 

(742)

 

 

(742)

Accumulated other comprehensive income (loss)

 

 

130

 

 

(2,358)

 

 

(4,904)

 

 

(3,733)

 

 

(2,697)

Total stockholders' equity

 

 

363,448

 

 

357,574

 

 

353,345

 

 

348,576

 

 

344,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

3,655,996

 

$

3,653,121

 

$

2,852,800

 

$

2,879,714

 

$

2,735,577

 

 

 

 

 

 

 

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

   March 31,   

 

December 31,

 

September 30,

 

June 30,

 

   March 31,   

(in thousands, except share data)

    

2019

    

2018

    

2018

    

2018

    

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

34,365

 

$

33,947

 

$

25,115

 

$

23,866

 

$

22,504

Interest on loans held for sale

 

 

358

 

 

648

 

 

625

 

 

521

 

 

411

Interest on securities

 

 

1,847

 

 

1,788

 

 

1,629

 

 

1,567

 

 

1,496

Other interest and dividend income

 

 

483

 

 

540

 

 

480

 

 

297

 

 

274

Total interest and dividend income

 

 

37,053

 

 

36,923

 

 

27,849

 

 

26,251

 

 

24,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

8,243

 

 

7,181

 

 

5,409

 

 

4,450

 

 

3,523

Interest on FHLB borrowings

 

 

2,275

 

 

2,400

 

 

1,130

 

 

906

 

 

1,038

Interest on subordinated debentures

 

 

505

 

 

552

 

 

189

 

 

 —

 

 

 —

Total interest expense

 

 

11,023

 

 

10,133

 

 

6,728

 

 

5,356

 

 

4,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

26,030

 

 

26,790

 

 

21,121

 

 

20,895

 

 

20,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

857

 

 

1,502

 

 

632

 

 

886

 

 

808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income, after provision for loan losses

 

 

25,173

 

 

25,288

 

 

20,489

 

 

20,009

 

 

19,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in mortgage servicing rights fair value

 

 

(2,151)

 

 

(1,734)

 

 

(378)

 

 

(306)

 

 

1,022

Other

 

 

6,653

 

 

7,730

 

 

9,249

 

 

8,765

 

 

6,261

Total mortgage banking income

 

 

4,502

 

 

5,996

 

 

8,871

 

 

8,459

 

 

7,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

3,778

 

 

4,007

 

 

3,302

 

 

3,224

 

 

2,967

Income on retirement plan annuities

 

 

96

 

 

101

 

 

100

 

 

119

 

 

113

Gain on sale and call of securities, net

 

 

 —

 

 

 5

 

 

 —

 

 

 —

 

 

 —

Bank-owned life insurance income

 

 

253

 

 

1,003

 

 

243

 

 

243

 

 

239

Other income

 

 

1,213

 

 

540

 

 

1,124

 

 

512

 

 

747

Total noninterest income

 

 

9,842

 

 

11,652

 

 

13,640

 

 

12,557

 

 

11,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

19,245

 

 

20,062

 

 

16,809

 

 

17,345

 

 

16,352

Occupancy and equipment

 

 

4,448

 

 

3,949

 

 

3,027

 

 

2,961

 

 

3,275

Data processing

 

 

2,046

 

 

1,965

 

 

1,702

 

 

1,569

 

 

1,553

Loan expense

 

 

1,271

 

 

1,227

 

 

1,503

 

 

1,390

 

 

1,262

Marketing

 

 

958

 

 

611

 

 

639

 

 

1,084

 

 

999

Professional fees

 

 

946

 

 

1,237

 

 

712

 

 

915

 

 

968

Deposit insurance

 

 

666

 

 

572

 

 

540

 

 

491

 

 

494

Merger expenses

 

 

 —

 

 

3,808

 

 

274

 

 

524

 

 

486

Other expenses

 

 

3,012

 

 

3,162

 

 

2,177

 

 

2,239

 

 

2,210

Total noninterest expenses

 

 

32,592

 

 

36,593

 

 

27,383

 

 

28,518

 

 

27,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

2,423

 

 

347

 

 

6,746

 

 

4,048

 

 

3,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

356

 

 

236

 

 

818

 

 

945

 

 

814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,067

 

$

111

 

$

5,928

 

$

3,103

 

$

2,252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

$

 —

 

$

0.19

 

$

0.10

 

$

0.07

Diluted

 

$

0.07

 

$

 —

 

$

0.19

 

$

0.10

 

$

0.07

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

31,561,761

 

 

31,571,467

 

 

31,575,210

 

 

31,578,961

 

 

31,569,811

Diluted

 

 

31,561,761

 

 

31,571,467

 

 

31,575,811

 

 

31,578,961

 

 

31,569,811

 

 

 

 

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31,

 

 

 

 

 

(dollars in thousands, except share data)

    

2019

    

2018

    

$ Change

    

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

34,365

 

$

22,504

 

$

11,861

 
52.7

%

Interest on loans held for sale

 

 

358

 

 

411

 

 

(53)

 
(12.9)

 

Interest on securities

 

 

1,847

 

 

1,496

 

 

351

 
23.5

 

Other interest and dividend income

 

 

483

 

 

274

 

 

209

 
76.3

 

Total interest and dividend income

 

 

37,053

 

 

24,685

 

 

12,368

 
50.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

8,243

 

 

3,523

 

 

4,720

 
134.0

 

Interest on FHLB borrowings

 

 

2,275

 

 

1,038

 

 

1,237

 
119.2

 

Interest on subordinated debentures

 

 

505

 

 

 —

 

 

505

 
100.0

 

Total interest expense

 

 

11,023

 

 

4,561

 

 

6,462

 
141.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

26,030

 

 

20,124

 

 

5,906

 
29.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

857

 

 

808

 

 

49

 
6.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income, after provision for loan losses

 

 

25,173

 

 

19,316

 

 

5,857

 
30.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

Changes in mortgage servicing rights fair value

 

 

(2,151)

 

 

1,022

 

 

(3,173)

 
(310.5)

 

Other

 

 

6,653

 

 

6,261

 

 

392

 
6.3

 

Total mortgage banking income

 

 

4,502

 

 

7,283

 

 

(2,781)

 
(38.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

3,778

 

 

2,967

 

 

811

 
27.3

 

Income on retirement plan annuities

 

 

96

 

 

113

 

 

(17)

 
(15.0)

 

Bank-owned life insurance income

 

 

253

 

 

239

 

 

14

 
5.9

 

Other income

 

 

1,213

 

 

747

 

 

466

 
62.4

 

Total noninterest income

 

 

9,842

 

 

11,349

 

 

(1,507)

 
(13.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

19,245

 

 

16,352

 

 

2,893

 
17.7

 

Occupancy and equipment

 

 

4,448

 

 

3,275

 

 

1,173

 
35.8

 

Data processing

 

 

2,046

 

 

1,553

 

 

493

 
31.7

 

Loan expense

 

 

1,271

 

 

1,262

 

 

 9

 
0.7

 

Marketing

 

 

958

 

 

999

 

 

(41)

 
(4.1)

 

Professional fees

 

 

946

 

 

968

 

 

(22)

 
(2.3)

 

Deposit insurance

 

 

666

 

 

494

 

 

172

 
34.8

 

Merger expenses

 

 

 —

 

 

486

 

 

(486)

 
(100.0)

 

Other expenses

 

 

3,012

 

 

2,210

 

 

802

 
36.3

 

Total noninterest expenses

 

 

32,592

 

 

27,599

 

 

4,993

 
18.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

2,423

 

 

3,066

 

 

(643)

 
(21.0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

356

 

 

814

 

 

(458)

 
(56.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,067

 

$

2,252

 

$

(185)

 
(8.2)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

$

0.07

 

 

 

 

 

 

Diluted

 

$

0.07

 

$

0.07

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

31,561,761

 

 

31,569,811

 

 

 

 

 

 

Diluted

 

 

31,561,761

 

 

31,569,811

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

March 31, 2019

 

December 31, 2018

 

March 31, 2018

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

 

 

 

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

Outstanding

 

 

 

Yield/

 

 

    

Balance

    

Interest

    

Cost (6)

    

Balance

    

Interest

    

Cost (6)

 

Balance

    

Interest

    

Cost (6)

 

 

 

(dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

$

3,016,943

 

$

34,723

 

4.67

%  

$

2,964,531

 

$

34,595

 

4.63

%  

$

2,248,119

 

$

22,915

 

4.13

%

Investment securities (2)

 

 

260,211

 

 

1,886

 

2.94

 

 

253,631

 

 

1,832

 

2.87

 

 

227,362

 

 

1,541

 

2.75

 

Other interest-earning assets

 

 

37,971

 

 

483

 

5.16

 

 

49,932

 

 

540

 

4.29

 

 

37,346

 

 

274

 

2.97

 

Total interest-earning assets

 

 

3,315,125

 

 

37,092

 

4.54

 

 

3,268,094

 

 

36,967

 

4.49

 

 

2,512,827

 

 

24,730

 

3.99

 

Noninterest-earning assets

 

 

252,882

 

 

 

 

 

 

 

252,652

 

 

 

 

 

 

 

125,640

 

 

 

 

 

 

Total assets

 

$

3,568,007

 

 

 

 

 

 

$

3,520,746

 

 

 

 

 

 

$

2,638,467

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

484,963

 

 

364

 

0.30

 

$

484,153

 

 

319

 

0.26

 

$

332,414

 

 

135

 

0.17

 

NOW accounts

 

 

136,954

 

 

25

 

0.07

 

 

139,517

 

 

24

 

0.07

 

 

125,602

 

 

20

 

0.06

 

Money market accounts

 

 

794,477

 

 

2,760

 

1.41

 

 

725,604

 

 

2,233

 

1.22

 

 

716,380

 

 

1,385

 

0.78

 

Certificates of deposit

 

 

812,992

 

 

4,512

 

2.25

 

 

820,109

 

 

4,265

 

2.06

 

 

496,839

 

 

1,718

 

1.40

 

Brokered deposits

 

 

99,341

 

 

582

 

2.38

 

 

63,258

 

 

340

 

2.13

 

 

78,930

 

 

265

 

1.36

 

Total interest-bearing deposits

 

 

2,328,727

 

 

8,243

 

1.44

 

 

2,232,641

 

 

7,181

 

1.28

 

 

1,750,165

 

 

3,523

 

0.82

 

FHLB advances

 

 

392,483

 

 

2,275

 

2.35

 

 

438,023

 

 

2,400

 

2.17

 

 

253,359

 

 

1,038

 

1.66

 

Subordinated debentures

 

 

33,822

 

 

505

 

6.05

 

 

33,668

 

 

552

 

6.51

 

 

 —

 

 

 —

 

 —

 

Total borrowings

 

 

426,305

 

 

2,780

 

2.64

 

 

471,691

 

 

2,952

 

2.48

 

 

253,359

 

 

1,038

 

1.66

 

Total interest-bearing liabilities

 

 

2,755,032

 

 

11,023

 

1.62

 

 

2,704,332

 

 

10,133

 

1.49

 

 

2,003,524

 

 

4,561

 

0.92

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

400,573

 

 

 

 

 

 

 

408,074

 

 

 

 

 

 

 

260,455

 

 

 

 

 

 

Other noninterest-bearing liabilities

 

 

52,219

 

 

 

 

 

 

 

54,493

 

 

 

 

 

 

 

31,457

 

 

 

 

 

 

Total liabilities

 

 

3,207,824

 

 

 

 

 

 

 

3,166,899

 

 

 

 

 

 

 

2,295,436

 

 

 

 

 

 

Total equity

 

 

360,183

 

 

 

 

 

 

 

353,847

 

 

 

 

 

 

 

343,031

 

 

 

 

 

 

Total liabilities and equity

 

$

3,568,007

 

 

 

 

 

 

$

3,520,746

 

 

 

 

 

 

$

2,638,467

 

 

 

 

 

 

Tax equivalent net interest income

 

 

 

 

 

26,069

 

 

 

 

 

 

 

26,834

 

 

 

 

 

 

 

20,169

 

 

 

Tax equivalent interest rate spread (3)

 

 

 

 

 

 

 

2.92

%  

 

 

 

 

 

 

3.00

%  

 

 

 

 

 

 

3.07

%

Less: tax equivalent adjustment

 

 

 

 

 

39

 

 

 

 

 

 

 

44

 

 

 

 

 

 

 

45

 

 

 

Net interest income as reported

 

 

 

 

$

26,030

 

 

 

 

 

 

$

26,790

 

 

 

 

 

 

$

20,124

 

 

 

Net interest-earning assets (4)

 

$

560,093

 

 

 

 

 

 

$

563,762

 

 

 

 

 

 

$

509,303

 

 

 

 

 

 

Net interest margin (5)

 

 

 

 

 

 

 

3.18

%  

 

 

 

 

 

 

3.25

%  

 

 

 

 

 

 

3.25

%

Tax equivalent effect

 

 

 

 

 

 

 

0.01

 

 

 

 

 

 

 

0.01

 

 

 

 

 

 

 

0.01

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

3.19

%  

 

 

 

 

 

 

3.26

%  

 

 

 

 

 

 

3.26

%

Average interest-earning assets to average interest-bearing liabilities

 

 

120.33

%  

 

 

 

 

 

 

120.85

%  

 

 

 

 

 

 

125.42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

2,729,300

 

$

8,243

 

 

 

$

2,640,715

 

$

7,181

 

 

 

$

2,010,620

 

$

3,523

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

1.22

%

 

 

 

 

 

 
1.08

%  

 

 

 

 

 

 

0.71

%

Total funding liabilities, including demand deposits

 

$

3,155,605

 

$

11,023

 

 

 

$

3,112,406

 

$

10,133

 

 

 

$

2,263,979

 

$

4,561

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

1.42

%

 

 

 

 

 

 
1.29

%  

 

 

 

 

 

 

0.82

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) Includes securities available for sale and securities held to maturity.  Interest income from tax exempt securities is computed on a taxable equivalent basis using a tax rate of 21% for the quarters presented.  The yield on investments before tax equivalent adjustments for the quarters presented were 2.88%, 2.80%, and 2.67%, respectively.

 

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

 

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

 

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

 

(6) Annualized.

 

 

 

 

HarborOne Bancorp, Inc.

Average Balances and Yield Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances - Trend - Quarters Ended

 

 

    

    March 31, 2019   

    

December 31, 2018

    

September 30, 2018

    

      June 30, 2018      

    

    March 31, 2018   

 

 

 

(in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

                                  

 

 

                                  

 

 

 

 

Loans (1)

 

$

3,016,943

 

$

2,964,531

 

$

2,375,892

 

$

2,303,245

 

$

2,248,119

 

Investment securities (2)

 

 

260,211

 

 

253,631

 

 

239,443

 

 

233,587

 

 

227,362

 

Other interest-earning assets

 

 

37,971

 

 

49,932

 

 

74,390

 

 

41,584

 

 

37,346

 

Total interest-earning assets

 

 

3,315,125

 

 

3,268,094

 

 

2,689,725

 

 

2,578,416

 

 

2,512,827

 

Noninterest-earning assets

 

 

252,882

 

 

252,652

 

 

133,113

 

 

130,551

 

 

125,640

 

Total assets

 

$

3,568,007

 

$

3,520,746

 

$

2,822,838

 

$

2,708,967

 

$

2,638,467

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

484,963

 

$

484,153

 

$

338,109

 

$

346,201

 

$

332,414

 

NOW accounts

 

 

136,954

 

 

139,517

 

 

126,978

 

 

128,360

 

 

125,602

 

Money market accounts

 

 

794,477

 

 

725,604

 

 

678,721

 

 

698,591

 

 

716,380

 

Certificates of deposit

 

 

812,992

 

 

820,109

 

 

670,029

 

 

592,811

 

 

496,839

 

Brokered deposits

 

 

99,341

 

 

63,258

 

 

65,998

 

 

66,892

 

 

78,930

 

Total interest-bearing deposits

 

 

2,328,727

 

 

2,232,641

 

 

1,879,835

 

 

1,832,855

 

 

1,750,165

 

FHLB advances

 

 

392,483

 

 

438,023

 

 

256,391

 

 

217,712

 

 

253,359

 

Subordinated debentures

 

 

33,822

 

 

33,668

 

 

11,788

 

 

 —

 

 

 —

 

Total borrowings

 

 

426,305

 

 

471,691

 

 

268,179

 

 

217,712

 

 

253,359

 

Total interest-bearing liabilities

 

 

2,755,032

 

 

2,704,332

 

 

2,148,014

 

 

2,050,567

 

 

2,003,524

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

400,573

 

 

408,074

 

 

285,025

 

 

278,846

 

 

260,455

 

Other noninterest-bearing liabilities

 

 

52,219

 

 

54,493

 

 

39,445

 

 

33,561

 

 

31,457

 

Total liabilities

 

 

3,207,824

 

 

3,166,899

 

 

2,472,484

 

 

2,362,974

 

 

2,295,436

 

Total equity

 

 

360,183

 

 

353,847

 

 

350,354

 

 

345,993

 

 

343,031

 

Total liabilities and equity

 

$

3,568,007

 

$

3,520,746

 

$

2,822,838

 

$

2,708,967

 

$

2,638,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Yield Trend - Quarters Ended

 

 

    

    March 31, 2019    

    

December 31, 2018

    

September 30, 2018

    

      June 30, 2018      

    

    March 31, 2018    

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

 
4.67

%  

 
4.63

%  

 
4.30

%  

 
4.25

%  

 
4.13

%

Investment securities (2)

 

 
2.94

%  

 
2.87

%  

 
2.77

%  

 
2.77

%  

 
2.75

%

Other interest-earning assets

 

 
5.16

%  

 
4.29

%  

 
2.56

%  

 
2.87

%  

 
2.97

%

Total interest-earning assets

 

 
4.54

%  

 
4.49

%  

 
4.11

%  

 
4.09

%  

 
3.99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 
0.30

%  

 
0.26

%  

 
0.17

%  

 
0.17

%  

 
0.17

%

NOW accounts

 

 
0.07

%  

 
0.07

%  

 
0.06

%  

 
0.06

%  

 
0.06

%

Money market accounts

 

 
1.41

%  

 
1.22

%  

 
0.96

%  

 
0.86

%  

 
0.78

%

Certificates of deposit

 

 
2.25

%  

 
2.06

%  

 
1.94

%  

 
1.71

%  

 
1.40

%

Brokered deposits

 

 
2.38

%  

 
2.13

%  

 
1.84

%  

 
1.50

%  

 
1.36

%

Total interest-bearing deposits

 

 
1.44

%  

 
1.28

%  

 
1.14

%  

 
0.97

%  

 
0.82

%

FHLB advances

 

 
2.35

%  

 
2.17

%  

 
1.75

%  

 
1.67

%  

 
1.66

%

Subordinated debentures

 

 
6.05

%

 
6.51

%

 
6.36

%

 

 —

%

 

 —

%

Total borrowings

 

 
2.64

%

 
2.48

%

 
1.95

%

 
1.67

%

 
1.66

%

Total interest-bearing liabilities

 

 
1.62

%  

 
1.49

%  

 
1.24

%  

 
1.05

%  

 
0.92

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Performance Ratios (annualized):

    

2019

 

2018

 

2018

 

2018

 

2018

 

(dollars in thousands)

 

      

                     

     

   

                     

     

   

                     

     

   

                     

     

   

                     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA)

 

 

0.23

%  

 

0.01

%  

 

0.84

%  

 

0.46

%  

 

0.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (ROAE)

 

 

2.30

%  

 

0.13

%  

 

6.77

%  

 

3.59

%  

 

2.63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

 

$

32,592

 

$

36,593

 

$

27,383

 

$

28,518

 

$

27,599

 

Less: Core deposit intangible expense

 

 

618

 

 

618

 

 

 —

 

 

 —

 

 

 —

 

Less: Noncompete intangible expense

 

 

22

 

 

22

 

 

22

 

 

22

 

 

22

 

Total adjusted noninterest expense

 

$

31,952

 

$

35,953

 

$

27,361

 

$

28,496

 

$

27,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

26,030

 

$

26,790

 

$

21,121

 

$

20,895

 

$

20,124

 

Total noninterest income

 

 

9,842

 

 

11,652

 

 

13,640

 

 

12,557

 

 

11,349

 

Total revenue

 

$

35,872

 

$

38,442

 

$

34,761

 

$

33,452

 

$

31,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (1)

 

 

89.07

%  

 

93.52

%  

 

78.71

%  

 

85.19

%  

 

87.62

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) This non-GAAP measure represents noninterest expense divided by the sum of net interest income and noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or for the Quarters Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Asset Quality

    

2019

 

2018

 

2018

 

2018

 

2018

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

                     

     

   

                     

     

   

                     

     

   

                     

     

   

                     

 

Total nonperforming assets

 

$

19,266

 

$

18,460

 

$

17,407

 

$

17,397

 

$

17,171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.53

%  

 

0.51

%  

 

0.61

%  

 

0.60

%  

 

0.63

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

 

0.71

%  

 

0.69

%  

 

0.87

%  

 

0.84

%  

 

0.84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge offs

 

$

230

 

$

287

 

$

436

 

$

505

 

$

434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized net charge offs/average loans

 

 

0.03

%  

 

0.04

%  

 

0.08

%  

 

0.09

%  

 

0.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to nonperforming loans

 

 

116.41

%  

 

116.62

%  

 

116.16

%  

 

117.57

%  

 

115.51

%

 

 

 

 

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

Capital and Share Related

    

2019

 

2018

 

2018

 

2018

 

2018

 

(dollars in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

                     

     

   

                     

     

   

                     

     

   

                     

     

   

                     

 

Common stock outstanding

 

 

32,560,136

 

 

32,563,485

 

 

32,585,519

 

 

32,622,695

 

 

32,622,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

11.16

 

$

10.98

 

$

10.84

 

$

10.69

 

$

10.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

363,448

 

$

357,574

 

$

353,345

 

$

348,576

 

$

344,857

 

Less: Goodwill

 

 

69,635

 

 

70,088

 

 

13,660

 

 

13,629

 

 

13,565

 

Less: Intangible assets (1)

 

 

7,739

 

 

8,379

 

 

66

 

 

88

 

 

110

 

Tangible common equity

 

$

286,074

 

$

279,107

 

$

339,619

 

$

334,859

 

$

331,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (2)

 

$

8.79

 

$

8.57

 

$

10.42

 

$

10.26

 

$

10.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,655,996

 

$

3,653,121

 

$

2,852,800

 

$

2,879,714

 

$

2,735,577

 

Less: Goodwill

 

 

69,635

 

 

70,088

 

 

13,660

 

 

13,629

 

 

13,565

 

Less: Intangible assets (1)

 

 

7,739

 

 

8,379

 

 

66

 

 

88

 

 

110

 

Tangible assets

 

$

3,578,622

 

$

3,574,654

 

$

2,839,074

 

$

2,865,997

 

$

2,721,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity / tangible assets (3)

 

 
7.99

%  

 
7.81

%  

 
11.96

%  

 
11.68

%  

 
12.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Intangible assets includes core deposit intangible and noncompete intangible.

(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.