SEGMENT REPORTING

3 Months Ended

Mar. 31, 2020

SEGMENT REPORTING

SEGMENT REPORTING

16.SEGMENT REPORTING

The Company has two reportable segments: HarborOne Bank and HarborOne Mortgage. Revenue from HarborOne Bank consists primarily of interest earned on loans and investment securities and service charges on deposit accounts. Revenue from HarborOne Mortgage comprises interest earned on loans and fees received as a result of the residential mortgage origination, sale and servicing process. 

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Segment profit and loss is measured by net income on a legal entity basis. Intercompany transactions are eliminated in consolidation.

Information about the reportable segments and reconciliation to the unaudited interim Consolidated Financial Statements at March 31, 2020 and 2019 and for the three months then ended is presented in the tables below. 

	Three Months Ended March 31, 2020
	HarborOne		HarborOne		HarborOne
	Bank		Mortgage		Bancorp, Inc.		Eliminations		Consolidated
	(in thousands)
Net interest and dividend income (expense)	$	26,510	$	281	$	(91)	$	—	$	26,700
Provision for loan losses		3,749		—		—		—		3,749
Net interest and dividend income (loss), after provision for loan losses		22,761		281		(91)		—		22,951
Mortgage banking income:
Changes in mortgage servicing rights fair value		(1,170)		(3,217)		—		—		(4,387)
Other		(49)		14,898		—		—		14,849
Total mortgage banking income (loss)		(1,219)		11,681		—		—		10,462
Other noninterest income (loss)		8,526		(122)		—		—		8,404
Total noninterest income		7,307		11,559		—		—		18,866
Noninterest expense		24,288		10,806		294		—		35,388
Income (loss) before income taxes		5,780		1,034		(385)		—		6,429
Provision (benefit) for income taxes		1,601		239		(135)		—		1,705
Net income (loss)	$	4,179	$	795	$	(250)	$	—	$	4,724
Total assets at period end	$	3,963,011	$	182,195	$	710,316	$	(754,316)	$	4,101,206
Goodwill at period end	$	59,042	$	10,760	$	—	$	—	$	69,802

	Three Months Ended March 31, 2019
	HarborOne		HarborOne		HarborOne
	Bank		Mortgage		Bancorp Inc.		Eliminations		Consolidated
	(in thousands)
Net interest and dividend income (expense)	$	26,419	$	109	$	(498)	$	—	$	26,030
Provision for loan losses		857		—		—		—		857
Net interest and dividend income (loss), after provision for loan losses		25,562		109		(498)		—		25,173
Mortgage banking income:
Changes in mortgage servicing rights fair value		(570)		(1,581)		—		—		(2,151)
Other		222		6,431		—		—		6,653
Total mortgage banking income (loss)		(348)		4,850		—		—		4,502
Other noninterest income (loss)		5,352		(12)		—		—		5,340
Total noninterest income		5,004		4,838		—		—		9,842
Noninterest expense		24,865		7,352		375		—		32,592
Income (loss) before income taxes		5,701		(2,405)		(873)		—		2,423
Provision (benefit) for income taxes		1,446		(845)		(245)		—		356
Net income (loss)	$	4,255	$	(1,560)	$	(628)	$	—	$	2,067
Total assets at period end	$	3,659,586	$	79,700	$	397,183	$	(480,473)	$	3,655,996
Goodwill at period end	$	58,875	$	10,760	$	—	$	—	$	69,635