SEGMENT REPORTING

3 Months Ended

Mar. 31, 2024

SEGMENT REPORTING

SEGMENT REPORTING

17. 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, 2024 and 2023 and for the three months ended March 31, 2024 and 2023 is presented in the tables below.

	Three Months Ended March 31, 2024
	HarborOne		HarborOne
	Bank		Mortgage		Consolidated
	(in thousands)
Net interest and dividend income	$	30,485	$	80	$	30,582
Benefit for credit losses		(168)		—		(168)
Net interest and dividend income, after benefit for credit losses		30,653		80		30,750
Mortgage banking income:
Gain on sale of mortgage loans		—		2,013		2,013
Intersegment gain (loss)		(236)		308		—
Changes in mortgage servicing rights fair value		(32)		86		54
Other		180		2,097		2,276
Total mortgage banking income		(88)		4,504		4,343
Other noninterest income		6,391		10		6,398
Total noninterest income		6,303		4,514		10,741
Noninterest expense		27,407		4,311		31,750
Income before income taxes		9,549		283		9,741
Provision for income taxes		2,386		60		2,441
Net income	$	7,163	$	223	$	7,300
Total assets at period end	$	5,867,715	$	92,719	$	5,862,222
Goodwill at period end	$	59,042	$	—	$	59,042

	Three Months Ended March 31, 2023
	HarborOne		HarborOne
	Bank		Mortgage		Consolidated
	(in thousands)
Net interest and dividend income	$	34,562	$	327	$	34,398
Provision for credit losses		1,866		—		1,866
Net interest and dividend income, after provision for credit losses		32,696		327		32,532
Mortgage banking income:
Gain on sale of mortgage loans		—		2,224		2,224
Intersegment (loss) gain		(348)		454		—
Changes in mortgage servicing rights fair value		(136)		(1,556)		(1,692)
Other		201		2,015		2,216
Total mortgage banking (loss) income		(283)		3,137		2,748
Other noninterest income		5,942		—		5,942
Total noninterest income		5,659		3,137		8,690
Noninterest expense		26,190		5,322		31,509
Income(loss) before income taxes		12,165		(1,858)		9,713
Provision(benefit) for income taxes		3,115		(565)		2,416
Net income (loss)	$	9,050	$	(1,293)	$	7,297
Total assets at period end	$	5,583,453	$	109,090	$	5,572,858
Goodwill at period end	$	59,042	$	10,760	$	69,802