MINIMUM REGULATORY CAPITAL REQUIREMENTS

3 Months Ended

Mar. 31, 2024

MINIMUM REGULATORY CAPITAL REQUIREMENTS

MINIMUM REGULATORY CAPITAL REQUIREMENTS

12.MINIMUM REGULATORY CAPITAL REQUIREMENTS

The Company and the Bank are subject to various regulatory capital requirements administered by the Federal Reserve and the FDIC. Failure to meet minimum capital requirements can result in mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s unaudited Consolidated Financial Statements.

Under the capital rules, risk-based capital ratios are calculated by dividing Tier 1, common equity Tier 1, and total risk-based capital, respectively, by risk-weighted assets. Assets and off-balance sheet credit equivalents are assigned to one of several risk-weight categories, based primarily on relative risk. The rules require banks and bank holding companies to maintain a minimum common equity Tier 1 capital ratio of 4.5%, a minimum Tier 1 capital ratio of 6.0% and a total capital ratio of 8.0%. In addition, a Tier 1 leverage ratio of 4.0% is required. Additionally, the capital rules require a bank holding company to maintain a capital conservation buffer of common equity Tier 1 capital in an amount above the minimum risk-based capital requirements equal to 2.5% of total risk weighted assets, or face restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases.

Under the FDIC’s prompt corrective action rules, an insured state nonmember bank is considered “well capitalized” if its capital ratios meet or exceed the ratios as set forth in the following table and is not subject to any written agreement, order, capital directive, or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. The Bank must meet well capitalized requirements under prompt corrective action provisions. Prompt corrective action provisions are not applicable to bank holding companies.

A bank holding company is considered “well capitalized” if the bank holding company (i) has a total risk-based capital ratio of at least 10.0%, (ii) has a Tier 1 risk-based capital ratio of at least 6.0%, and (iii) is not subject to any written agreement order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure.

At March 31, 2024, the capital levels of both the Company and the Bank exceeded all regulatory capital requirements, and their regulatory capital ratios were above the minimum levels required to be considered well capitalized

for regulatory purposes. The capital levels of both the Company and the Bank at March 31, 2024 also exceeded the minimum capital requirements, including the currently applicable capital conservation buffer of 2.5%.

The Company’s and the Bank’s actual regulatory capital ratios as of March 31, 2024 and December 31, 2023 are presented in the table below.

									Minimum Required to be
									Considered "Well Capitalized"
					Minimum Required for				Under Prompt Corrective
	Actual				Capital Adequacy Purposes				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
HarborOne Bancorp, Inc.
March 31, 2024
Common equity Tier 1 capital to risk-weighted assets	$	566,298	12.0	%	$	212,812	4.5	%		N/A	N/A
Tier 1 capital to risk-weighted assets		566,298	12.0			283,749	6.0			N/A	N/A
Total capital to risk-weighted assets		617,896	13.1			378,332	8.0			N/A	N/A
Tier 1 capital to average assets		566,298	9.7			232,397	4.0			N/A	N/A
December 31, 2023
Common equity Tier 1 capital to risk-weighted assets	$	567,248	12.0	%	$	212,816	4.5	%		N/A	N/A
Tier 1 capital to risk-weighted assets		567,248	12.0			283,755	6.0			N/A	N/A
Total capital to risk-weighted assets		619,138	13.1			378,340	8.0			N/A	N/A
Tier 1 capital to average assets		567,248	10.0			226,690	4.0			N/A	N/A
HarborOne Bank
March 31, 2024
Common equity Tier 1 capital to risk-weighted assets	$	514,878	10.9	%	$	212,731	4.5	%	$	307,278	6.5	%
Tier 1 capital to risk-weighted assets		514,878	10.9			283,641	6.0			378,188	8.0
Total capital to risk-weighted assets		566,476	12.0			378,188	8.0			472,735	10.0
Tier 1 capital to average assets		514,878	8.9			232,374	4.0			290,467	5.0
December 31, 2023
Common equity Tier 1 capital to risk-weighted assets	$	509,791	10.8	%	$	212,724	4.5	%	$	307,267	6.5	%
Tier 1 capital to risk-weighted assets		509,791	10.8			283,632	6.0			378,175	8.0
Total capital to risk-weighted assets		561,682	11.9			378,175	8.0			472,719	10.0
Tier 1 capital to average assets		509,791	9.0			226,666	4.0			283,333	5.0