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Section 1: 8-K (8-K)

hone_Current Folio_8k

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 8-K


 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of Earliest Event Reported): January 25, 2019


HarborOne Bancorp, Inc.

(Exact Name of Registrant as Specified in its Charter)


 

 

 

Massachusetts

001-37778

81-1607465

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification Number

 

 

 

 

770 Oak Street, Brockton, Massachusetts 02301

(Address of principal executive offices)

 

(508) 895-1000

(Registrant’s telephone number, including area code)

 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[  ]Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company [X]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

 

 


 

Item 2.02Results of Operations and Financial Condition

 

On January 25, 2019,  HarborOne Bancorp, Inc. (the “Company”), the holding company for HarborOne Bank, issued a press release announcing its financial results for the quarter ended December 31, 2018.  The Company’s press release is included as Exhibit 99.1 to this report.

 

The information set forth in this Item 2.02 and in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. 

 

 

Item 9.01Financial Statements and Exhibits

 

(d)Exhibits

 

 

 

 

Number

 

Description

 

 

 

99.1

 

Press release dated January 25, 2019

 

2


 

EXHIBIT INDEX

 

 

 

 

Number

 

Description

 

 

 

99.1

 

Press release dated January 25, 2019

 

 

3


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunder duly authorized.

 

 

 

 

 

 

HARBORONE BANCORP, INC.

 

 

 

By:

/s/ Linda H. Simmons

 

 

Name:

Linda H. Simmons

 

Title:

Senior Vice President and 

 

 

Chief Financial Officer

 

 

 

Date:  January 25, 2019

 

 

 

 

4


(Back To Top)

Section 2: EX-99.1 (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 2018 Fourth Quarter Earnings

Contact: Linda Simmons, SVP, CFO

Brockton, Massachusetts (January 25, 2019): HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $111,000, or $0.00 basic and diluted earnings per share for the fourth quarter of 2018, compared to $5.9 million, or $0.19 per basic and diluted share, for the prior quarter and net income of $1.6 million, or $0.05 per basic and diluted share, for the same quarter last year. For the year ended December 31, 2018 net income was $11.4 million, or $0.36 per basic and diluted share, as compared to $10.4 million, or $0.33 per basic and diluted share, for the same period last year.

 

Quarterly and annual earnings for 2018 were significantly impacted by the Coastway Bancorp, Inc. (“Coastway”) acquisition, which closed on October 5, 2018, resulting in merger expenses of $3.8 million and $5.1 million, respectively. Excluding merger expenses, net income for the three months and year ended December 31, 2018 was $3.0 million, or $0.09 per basic and diluted share and $15.3 million, or $0.49 per basic and diluted share, respectively.

 

Selected highlights:

 

·

Sustained commercial loan growth

·

14 basis point net interest margin improvement quarter over quarter

·

Net interest income expands $14.6 million, or 19.6% year over year

 

“Our organic commercial loan growth and recent acquisition of Coastway has provided year over year net interest income expansion, as we continue to maintain strong credit quality, said James W. Blake, CEO. We look forward to continuing our momentum as we expand our New England franchise through new branches, product development and brand awareness.”

 

Net Interest Income

The Company’s net interest and dividend income was $26.8 million for the quarter ended December 31, 2018, up $5.7 million, or 26.8%, from $21.1 million for the quarter ended September 30, 2018 and up $7.4 million, or 37.9%, from $19.4 million for the quarter ended December 31, 2017. The tax-equivalent interest rate spread and net interest margin on a fully tax equivalent basis were 3.00% and 3.26%, respectively, for the quarter ended December 31, 2018 compared to 2.87% and 3.12%, respectively, for the quarter ended September 30, 2018 and 2.90% and 3.07%, respectively, for the quarter ended December 31, 2017.

 

The increase in net interest income from the previous quarter reflects a $9.1 million, or 32.6%, increase in total interest and dividend income partially offset by an increase of $3.4 million, or 50.6% in total interest expense. Compared to the prior quarter, interest and dividend income was positively impacted by the Coastway acquisition and organic commercial loan growth. Interest on loans in the fourth quarter of 2018 includes $900,000 in accretion income of the Coastway loans’ fair value discount and $338,000 in prepayment penalties on commercial loans. Prepayment penalties in the previous quarter were $233,000. The yield on loans was 4.63% for the quarter ended December 31, 2018 compared to 4.30% for the quarter ended September 30, 2018. The increase in interest expense is due to acquisition of Coastway deposits and an increase in higher cost money market balances driving a 14 basis point increase in the cost of interest-bearing deposits, and an increase in average FHLB advances of $181.6 million and a 42 basis point increase in the cost of those funds, primarily reflecting the Coastway borrowings acquired.  

 

The increase in net interest income from the prior year quarter reflects a $13.1 million, or 55.1%, increase in total interest and dividend income and an increase of $5.8 million, or 131.5%, in total interest expense. The increases largely reflect the impact of the Coastway acquisition. Also positively impacting interest and dividend income is the Company’s commercial loan growth and an increase in the yield on loans to 4.63% from 3.94%, primarily driven by commercial loan growth as well as 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 $496.8 million with a 56 basis point increase in the cost of those funds and a $191.6 million increase in average borrowings with a 74 basis point increase in the cost of those funds. The increase in deposits reflects the Coastway acquired deposits and organic deposit growth in money market and term certificates of deposits.

 

Noninterest Income

Noninterest income decreased to $11.7 million for the quarter ended December 31, 2018, down $2.0 million, or 14.6%, from the quarter ended September 30, 2018. The decrease is primarily due to a decrease in mortgage banking income of $2.9 million and other income of $584,000. Results of HarborOne Mortgage, LLC (“HarborOne Mortgage”) were down compared to the third quarter.  Lower mortgage


 

banking income reflects industry wide conditions, including lack of inventory and lower refinancing activity due to higher mortgage rates. We expect these headwinds to continue into 2019. Other mortgage banking income decreased $1.5 million primarily reflecting the decrease in mortgage origination volumes. Additionally mortgage servicing rights fair value decreased $1.4 million. The decrease in other income is primarily due to a decrease of $621,000 in swap fee income.  The decreases were partially offset by recognition of a $746,000 death benefit through bank-owned life insurance income and a $705,000 increase in deposit account fees reflecting the added Coastway accounts.

 

Noninterest income decreased $2.5 million or 17.7%, as compared to the quarter ended December 31, 2017. Mortgage banking income decreased $3.1 million, or 33.8%, and other income decreased $967,000, partially offset by an increase of $757,000 in bank owned life insurance income from the above mentioned death benefit and an increase in deposit account fee income of $784,000.  Mortgage banking income decreased compared to the prior year quarter due to lower mortgage originations in 2018, primarily as a result of higher residential mortgage interest rates, low housing inventories and reduced refinancing volume. Additionally, mortgage servicing rights fair value decreased $1.7 million. The decrease in other income compared to prior year quarter is primarily due to a $1.2 million reversal of contingent consideration in 2017 and no such transaction in 2018.

 

Noninterest Expense

Noninterest expenses were $36.6 million for the quarter ended December 31, 2018, an increase of $9.2 million, or 33.6%, from the quarter ended September 30, 2018 including merger expenses of $3.8 million as compared to $274,000 in the third quarter. The majority of these costs were related to contract terminations and legal and professional fees.

 

Additionally, compensation and benefits and occupancy and equipment increased $3.3 million and $922,000, respectively. The increase in compensation and benefits primarily reflects an increase in salary expense of $2.6 million primarily due to the addition of Coastway employees and a $642,000 increase in stock option expense. During the third quarter of 2018 a clerical error in the 2017 stock option award amounts was corrected resulting in a one-time $652,000 expense reversal, the 2018 fourth quarter results reflect the normalized quarterly expense for the plan. The occupancy and equipment expense increase is due to depreciation and real estate taxes on the additional Coastway properties. Other expenses increased $985,000 primarily due to amortization of core deposit intangibles of $618,000.

 

Total noninterest expenses increased $6.9 million, or 23.2%, from the quarter ended December 31, 2017. Compensation and benefits increased $2.4 million, occupancy and equipment expense increased $902,000 and the 2018 quarter included $3.8 million in merger expense whereas there were none in the quarter ended December 31, 2017, due primarily to the Coastway acquisition. Offsetting the increases was a loan expense decrease of $525,000 consistent with the decrease in loan originations. The $325,000 decrease in marketing expenses primarily reflects timing.

 

Income Tax Provision

The effective tax rate was 68.0% for the quarter ended December 31, 2018, compared to 12.1% for the quarter ended September 30, 2018 and 49.2% for the quarter ended December 31, 2017. The effective tax rate for the years ended December 31, 2018 and 2017 was 19.8% and 39.1%, respectively. The increase in the effective tax rate from the previous quarter primarily resulted from nondeductible merger expenses.  Additionally, in the third quarter,  an $826,000 tax refund for the tax year 2014 was recognized. In 2017 the Company filed amended returns that reflected a change in tax basis of certain assets. The effective tax rates for 2018 periods also have been impacted by the enactment of the Tax Cuts and Jobs Act of 2017 which resulted in significant changes to the U.S. tax code, including a reduction in the top corporate income tax rate from 35% to 21% effective January 1, 2018.

 

Asset Quality

The Company recorded a provision for loan losses of $1.5 million for the quarter ended December 31, 2018, compared to $632,000 for the quarter ended September 30, 2018 and $760,000 for the quarter ended December 31, 2017. 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 increase in the provision 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.

 

Net charge-offs totaled $287,000 for the quarter ended December 31, 2018, or 0.04%, of average loans outstanding on an annualized basis, compared to $436,000, or 0.08% of average loans outstanding on an annualized basis, for the quarter ended September 30, 2018 and $204,000, or 0.04% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2017. 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.

 

The allowance for loan losses was $20.7 million, or 0.69%, of total loans at December 31, 2018, compared to $19.4 million, or 0.87%, of total loans at September 30, 2018 and $18.5 million, or 0.84%, of total loans at December 31, 2017. 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 $18.5 million at December 31, 2018 compared to $17.4 million at September 30, 2018 and $18.6 million at December 31, 2017. Nonperforming assets as a percentage of total assets were 0.51% at December 31, 2018, 0.61% at September 30, 2018 and 0.69% at December 31, 2017. The Company continues to minimize nonperforming assets through diligent collection efforts, prudent workout arrangements and strong underwriting.

 

Balance Sheet

Total assets increased $800.3 million, or 28.1%, to $3.65 billion at December 31, 2018 from $2.85 billion at September 30, 2018. On October 5, 2018, the Company completed the acquisition of Coastway, resulting in the addition of nine branch locations in Rhode Island. The transaction included the acquisition of $703.9 million in loans and the assumption of $476.5 million in deposits and $276.8 million in FHLB borrowings, each at fair value. The recording of the transaction resulted in $56.4 million in goodwill and $9.0 million in core deposit intangibles. 

 

Net loans increased $760.5 million, or 34.5%, to $2.96 billion at December 31, 2018 from $2.20 billion at September 30, 2018. The net increase in loans for the three months ended December 31, 2018 was primarily due to the $703.9 million in loans at fair value acquired from Coastway. Gross loans excluding the Coastway loans increased $58.2 million from September 30, 2018, reflecting increases in commercial real estate of $31.5 million, construction loans of $37.7 million and commercial loans of $6.8 million offset by decreases in residential real estate loans of $9.7 million and consumer loans of $8.2 million.   Loans held for sale decreased $113.2 million, or 72.9%, to $42.1 million at December 31, 2018 from $155.3 million at September 30, 2018 due to the settlement of a $105.4 million residential real estate loan portfolio sale. Management proactively assesses the balance sheet mix to enhance margins. The decrease in consumer loans partially reflects the reallocation of funds into commercial lending.

 

Total deposits increased $499.4 million, or 22.9%, to $2.69 billion at December 31, 2018 from $2.19 billion at September 30, 2018 and primarily reflects the fair value of deposits acquired from Coastway of $476.5 million.  Compared to the prior quarter, excluding the Coastway acquired balances, non-certificate accounts increased $50.8 million, brokered deposits increased $10.7 million and term certificate accounts decreased $38.6 million. The decrease in term certificates includes net maturities of $28.6 million in Coastway acquired term certificates. FHLB borrowings were $519.9 million at December 31, 2018 and $231.2 million at September 30, 2018. We acquired $276.8 million from Coastway. Subordinated debt was $33.8 million at December 31, 2018 and September 30, 2018.

 

Total stockholders’ equity was $357.6 million at December 31, 2018 compared to $353.3 million at September 30, 2018 and $343.5 million at December 31, 2017.  The tangible common equity to tangible assets ratio was 7.81% at December 31, 2018, 11.96% at September 30, 2018 and 12.35% at December 31, 2017.  At December 31, 2018, 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 23 full-service branches, two limited service branches, two commercial loan offices in Boston, Massachusetts and Providence, Rhode Island, and 16 free-standing ATMs. 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 40 offices in Massachusetts, Rhode Island, New Hampshire, Maine, and New Jersey and also does business 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, the Company’s ability to achieve the synergies and value creation contemplated by the Coastway acquisition; 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 net income and earnings per share before merger expenses, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December  31,

 

September  30,

 

      June 30,      

 

    March 31,    

 

December 31,

(Dollars in thousands)

    

2018

    

2018

    

2018

    

2018

    

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

  

 

 

  

    

 

  

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

27,686

 

$

18,478

 

$

20,232

 

$

15,205

 

$

16,348

Short-term investments

 

 

77,835

 

 

76,619

 

 

112,264

 

 

92,105

 

 

64,443

Total cash and cash equivalents

 

 

105,521

 

 

95,097

 

 

132,496

 

 

107,310

 

 

80,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

209,293

 

 

191,847

 

 

185,702

 

 

182,173

 

 

170,853

Securities held to maturity, at amortized cost

 

 

44,688

 

 

47,371

 

 

48,251

 

 

46,095

 

 

46,869

Federal Home Loan Bank stock, at cost

 

 

24,969

 

 

13,263

 

 

15,310

 

 

13,538

 

 

15,532

Loans held for sale, at fair value

 

 

42,107

 

 

155,268

 

 

71,017

 

 

34,129

 

 

59,460

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

1,100,797

 

 

652,909

 

 

756,007

 

 

762,361

 

 

766,917

Commercial real estate

 

 

934,420

 

 

788,561

 

 

726,276

 

 

687,121

 

 

655,419

Construction

 

 

176,319

 

 

138,642

 

 

163,240

 

 

144,949

 

 

128,643

Total mortgage loans on real estate

 

 

2,211,536

 

 

1,580,112

 

 

1,645,523

 

 

1,594,431

 

 

1,550,979

Commercial

 

 

277,271

 

 

139,616

 

 

132,293

 

 

111,013

 

 

109,523

Consumer

 

 

491,445

 

 

498,417

 

 

516,897

 

 

521,634

 

 

527,820

Loans

 

 

2,980,252

 

 

2,218,145

 

 

2,294,713

 

 

2,227,078

 

 

2,188,322

Less: Allowance for loan losses

 

 

(20,655)

 

 

(19,440)

 

 

(19,244)

 

 

(18,863)

 

 

(18,489)

Net deferred loan costs

 

 

5,255

 

 

5,677

 

 

5,982

 

 

6,075

 

 

6,645

Net loans

 

 

2,964,852

 

 

2,204,382

 

 

2,281,451

 

 

2,214,290

 

 

2,176,478

Mortgage servicing rights, at fair value

 

 

22,217

 

 

23,748

 

 

22,832

 

 

22,696

 

 

21,092

Goodwill

 

 

70,088

 

 

13,660

 

 

13,629

 

 

13,565

 

 

13,365

Intangible assets

 

 

8,379

 

 

66

 

 

88

 

 

110

 

 

132

Other assets

 

 

161,007

 

 

108,098

 

 

108,938

 

 

101,671

 

 

100,348

Total assets

 

$

3,653,121

 

$

2,852,800

 

$

2,879,714

 

$

2,735,577

 

$

2,684,920

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW and demand deposit accounts

 

$

556,517

 

$

432,628

 

$

429,397

 

$

419,776

 

$

395,153

Regular savings and club accounts

 

 

482,088

 

 

327,030

 

 

403,732

 

 

378,818

 

 

356,300

Money market deposit accounts

 

 

758,933

 

 

674,657

 

 

681,524

 

 

701,360

 

 

721,021

Brokered deposits

 

 

77,508

 

 

66,831

 

 

79,396

 

 

70,176

 

 

73,490

Term certificate accounts

 

 

810,015

 

 

684,495

 

 

608,453

 

 

557,082

 

 

467,774

Total deposits

 

 

2,685,061

 

 

2,185,641

 

 

2,202,502

 

 

2,127,212

 

 

2,013,738

Short-term borrowed funds

 

 

290,000

 

 

25,000

 

 

70,000

 

 

 —

 

 

44,000

Long-term borrowed funds

 

 

229,936

 

 

206,187

 

 

217,438

 

 

226,364

 

 

246,365

Subordinated debt

 

 

33,799

 

 

33,855

 

 

 —

 

 

 —

 

 

 —

Other liabilities and accrued expenses

 

 

56,751

 

 

48,772

 

 

41,198

 

 

37,144

 

 

37,333

Total liabilities

 

 

3,295,547

 

 

2,499,455

 

 

2,531,138

 

 

2,390,720

 

 

2,341,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

327

 

 

327

 

 

327

 

 

327

 

 

327

Additional paid-in capital

 

 

152,156

 

 

150,732

 

 

150,063

 

 

148,559

 

 

147,060

Unearned compensation - ESOP

 

 

(10,091)

 

 

(10,239)

 

 

(10,388)

 

 

(10,536)

 

 

(10,685)

Retained earnings

 

 

219,088

 

 

218,977

 

 

213,049

 

 

209,946

 

 

207,590

Treasury stock

 

 

(1,548)

 

 

(1,548)

 

 

(742)

 

 

(742)

 

 

(280)

Accumulated other comprehensive loss

 

 

(2,358)

 

 

(4,904)

 

 

(3,733)

 

 

(2,697)

 

 

(528)

Total stockholders' equity

 

 

357,574

 

 

353,345

 

 

348,576

 

 

344,857

 

 

343,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

3,653,121

 

$

2,852,800

 

$

2,879,714

 

$

2,735,577

 

$

2,684,920

 

 

 

 


 

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(Dollars in thousands, except per share amounts)

    

2018

    

2018

    

2018

    

2018

    

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

33,947

 

$

25,115

 

$

23,866

 

$

22,504

 

$

21,349

Interest on loans held for sale

 

 

648

 

 

625

 

 

521

 

 

411

 

 

777

Interest on securities

 

 

1,788

 

 

1,629

 

 

1,567

 

 

1,496

 

 

1,389

Other interest and dividend income

 

 

540

 

 

480

 

 

297

 

 

274

 

 

294

Total interest and dividend income

 

 

36,923

 

 

27,849

 

 

26,251

 

 

24,685

 

 

23,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

7,181

 

 

5,409

 

 

4,450

 

 

3,523

 

 

3,151

Interest on FHLB borrowings

 

 

2,400

 

 

1,130

 

 

906

 

 

1,038

 

 

1,226

Interest on subordinated debentures

 

 

552

 

 

189

 

 

 —

 

 

 —

 

 

 —

Total interest expense

 

 

10,133

 

 

6,728

 

 

5,356

 

 

4,561

 

 

4,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

26,790

 

 

21,121

 

 

20,895

 

 

20,124

 

 

19,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

1,502

 

 

632

 

 

886

 

 

808

 

 

760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income, after provision for loan losses

 

 

25,288

 

 

20,489

 

 

20,009

 

 

19,316

 

 

18,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Changes in mortgage servicing rights fair value

 

 

(1,734)

 

 

(378)

 

 

(306)

 

 

1,022

 

 

(74)

Other

 

 

7,730

 

 

9,249

 

 

8,765

 

 

6,261

 

 

9,134

Total mortgage banking income

 

 

5,996

 

 

8,871

 

 

8,459

 

 

7,283

 

 

9,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

4,007

 

 

3,302

 

 

3,224

 

 

2,967

 

 

3,223

Income on retirement plan annuities

 

 

101

 

 

100

 

 

119

 

 

113

 

 

118

Gain on sale and call of securities, net

 

 

 5

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Bank-owned life insurance income

 

 

1,003

 

 

243

 

 

243

 

 

239

 

 

246

Other income

 

 

540

 

 

1,124

 

 

512

 

 

747

 

 

1,507

Total noninterest income

 

 

11,652

 

 

13,640

 

 

12,557

 

 

11,349

 

 

14,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

20,062

 

 

16,809

 

 

17,345

 

 

16,352

 

 

17,655

Occupancy and equipment

 

 

3,949

 

 

3,027

 

 

2,961

 

 

3,275

 

 

3,047

Data processing

 

 

1,965

 

 

1,702

 

 

1,569

 

 

1,553

 

 

1,560

Loan expense

 

 

1,227

 

 

1,503

 

 

1,390

 

 

1,262

 

 

1,752

Marketing

 

 

611

 

 

639

 

 

1,084

 

 

999

 

 

936

Professional fees

 

 

1,237

 

 

712

 

 

915

 

 

968

 

 

1,097

Deposit insurance

 

 

572

 

 

540

 

 

491

 

 

494

 

 

412

Merger expenses

 

 

3,808

 

 

274

 

 

524

 

 

486

 

 

 —

Other expenses

 

 

3,162

 

 

2,177

 

 

2,239

 

 

2,210

 

 

3,234

Total noninterest expenses

 

 

36,593

 

 

27,383

 

 

28,518

 

 

27,599

 

 

29,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

347

 

 

6,746

 

 

4,048

 

 

3,066

 

 

3,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

236

 

 

818

 

 

945

 

 

814

 

 

1,540

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

111

 

$

5,928

 

$

3,103

 

$

2,252

 

$

1,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 —

 

$

0.19

 

$

0.10

 

$

0.07

 

$

0.05

Diluted

 

$

 —

 

$

0.19

 

$

0.10

 

$

0.07

 

$

0.05

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

31,571,467

 

 

31,575,210

 

 

31,578,961

 

 

31,569,811

 

 

31,582,069

Diluted

 

 

31,571,467

 

 

31,575,811

 

 

31,578,961

 

 

31,569,811

 

 

31,582,069

 

 

 

 


 

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

 

 

 

 

(Dollars in thousands, except per share amounts)

    

2018

    

2017

    

$ Change

    

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

105,432

 

$

81,114

 

$

24,318

 

30.0

%

Interest on loans held for sale

 

 

2,205

 

 

2,739

 

 

(534)

 

(19.5)

 

Interest on securities

 

 

6,480

 

 

5,271

 

 

1,209

 

22.9

 

Other interest and dividend income

 

 

1,591

 

 

1,160

 

 

431

 

37.2

 

Total interest and dividend income

 

 

115,708

 

 

90,284

 

 

25,424

 

28.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

20,563

 

 

10,962

 

 

9,601

 

87.6

 

Interest on FHLB borrowings

 

 

5,474

 

 

4,974

 

 

500

 

10.1

 

Interest on subordinated debentures

 

 

741

 

 

 —

 

 

741

 

100.0

 

Total interest expense

 

 

26,778

 

 

15,936

 

 

10,842

 

68.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

88,930

 

 

74,348

 

 

14,582

 

19.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

3,828

 

 

2,416

 

 

1,412

 

58.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income, after provision for loan losses

 

 

85,102

 

 

71,932

 

 

13,170

 

18.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

Changes in mortgage servicing rights fair value

 

 

(1,396)

 

 

(2,056)

 

 

660

 

32.1

 

Other

 

 

32,005

 

 

39,251

 

 

(7,246)

 

(18.5)

 

Total mortgage banking income

 

 

30,609

 

 

37,195

 

 

(6,586)

 

(17.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

13,500

 

 

12,311

 

 

1,189

 

9.7

 

Income on retirement plan annuities

 

 

433

 

 

455

 

 

(22)

 

(4.8)

 

Gain on sale of consumer loans

 

 

 —

 

 

78

 

 

(78)

 

(100.0)

 

Gain on sale and call of securities, net

 

 

 5

 

 

 —

 

 

 5

 

100.0

 

Bank-owned life insurance income

 

 

1,728

 

 

1,024

 

 

704

 

68.8

 

Other income

 

 

2,923

 

 

3,471

 

 

(548)

 

(15.8)

 

Total noninterest income

 

 

49,198

 

 

54,534

 

 

(5,336)

 

(9.8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

70,568

 

 

66,223

 

 

4,345

 

6.6

 

Occupancy and equipment

 

 

13,212

 

 

11,715

 

 

1,497

 

12.8

 

Data processing

 

 

6,789

 

 

6,157

 

 

632

 

10.3

 

Loan expense

 

 

5,382

 

 

6,881

 

 

(1,499)

 

(21.8)

 

Marketing

 

 

3,333

 

 

3,595

 

 

(262)

 

(7.3)

 

Professional fees

 

 

3,832

 

 

4,233

 

 

(401)

 

(9.5)

 

Deposit insurance

 

 

2,097

 

 

1,717

 

 

380

 

22.1

 

Merger expenses