Press Release

HarborOne Bancorp, Inc. Announces First Quarter 2017 Earnings

Company Release - 4/20/2017 9:09 AM ET

BROCKTON, Mass.--(BUSINESS WIRE)-- HarborOne Bancorp, Inc. (the “Company”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced first quarter 2017 net income of $2.7 million or $0.09 per share as compared to $2.9 million, or $0.09 per share in the prior quarter and net income of $124,000 in the same quarter last year.

James W. Blake, President and CEO stated, “We are pleased with our strong start in 2017. Continuing the momentum from 2016, commercial real estate loans grew 12% from the prior quarter and 85% from the same quarter in 2016 providing improved margins quarter over quarter and year over year. We expect to continue the execution of our strategic commercial loan growth and look forward to the opportunities that lie ahead in 2017.”

Net Interest Income
The Company’s net interest income was $17.4 million for the quarter ended March 31, 2017, up $877,000, or 5.3%, from $16.6 million for the quarter ended December 31, 2016 and up $3.5 million, or 25.5%, from $13.9 million for the quarter ended March 31, 2016. The interest rate spread and net interest margin on a tax-equivalent basis were 2.83% and 2.99%, respectively, for the quarter ended March 31, 2017 compared to 2.77% and 2.92%, respectively, for the quarter ended December 31, 2016 and 2.60% and 2.72%, respectively, for the quarter ended March 31, 2016.

The increase in net interest income from the previous quarter reflects a $1.1 million, or 5.5% increase in total interest and dividend income offset by an increase of $223,000, or 6.4% in total interest expense. The increase in interest and dividend income is primarily due to the commercial loan growth that provided an increase in average outstanding loans of $56.3 million combined with a 13 basis point increase in yield on loans. The offsetting increase in interest expense is primarily a result of a $68.9 million increase in average interest-bearing deposits and a $34.3 million increase in average FHLB advances coupled with a 2 basis point increase in total cost of funds.

The increase in net interest income over the prior year quarter is primarily due to growth in the Company’s average loan balances to $2.11 billion from $1.80 billion and increases in the yield on loans to 3.78% from 3.59% again primarily driven by commercial loan growth. Total interest and dividend income increased $3.7 million, or 21.3%, and total interest expense increased $164,000, or 4.6%.

Noninterest Income
Noninterest income decreased to $11.5 million for the quarter ended March 31, 2017, down $7.8 million, or 40.6%, from the quarter ended December 31, 2016. This decrease is primarily due to 49.6% lower mortgage loan originations at Merrimack Mortgage Company, LLC(“Merrimack”) due to rising mortgage interest rates and seasonal fluctuations resulting in an $8.0 million, or 51.8% decrease in mortgage banking income. Mortgage banking income was also impacted by servicing rights fair value adjustments in the amount of a $442,000 decrease in the first quarter of 2017 compared to $3.0 million increase in the fourth quarter of 2016. Noninterest income increased $392,000, or 3.5% and mortgage banking income increased $316,000, or 4.5%, as compared to the quarter ended March 31, 2016. Compared to the same quarter prior year, Merrimack’s mortgage originations decreased 16.2% in 2017 however mortgage banking income increased due to a negative servicing rights fair vale adjustment of $2.3 million in the first quarter of 2016.

Noninterest Expense
Noninterest expenses were $24.4 million for the quarter ended March 31, 2017, a decrease of $5.0 million, or 16.9%, from the quarter ended December 31, 2016. The decrease was primarily due to the decrease in mortgage loan originations which contributed to a decrease of $3.6 million, or 19.3% in compensation and benefits and $1.3 million or 49.7% decrease in loan expense primarily from a decrease in loan closing expense. Noninterest expense decreased $152,000, or 0.6%, from the quarter ended March 31, 2016 due in part to a decrease in mortgage banking activity.

Asset Quality
The Company recorded a $265,000 provision for loan losses for the quarter ended March 31, 2017, $1.5 million for the quarter ended December 31, 2016 and $205,000 for the quarter ended March 31, 2016. Annually, in the first quarter, the Company adjusts general reserve allocations for commercial real estate and commercial loans based on updated peer data. The updated peer data resulted in lower general reserve rates and reserves on these loan types however, the decrease was partially offset by commercial loan growth. The provision in the previous quarter was primarily due to commercial loan growth. Changes in the provision for loan losses are also 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 $16.9 million, or 0.82%, of total loans at March 31, 2017, compared to $17.0 million, or 0.85%, of total loans, at December 31, 2016 and $13.7 million, or 0.78%, of total loans, at March 31, 2016. Net charge-offs totaled $349,000 for the quarter ended March 31, 2017, or 0.07%, of average loans outstanding on an annualized basis, compared to $320,000 and 0.06% for the quarter ended December 31, 2016 and $209,000 and 0.05% for the quarter ended March 31, 2016.

Nonperforming assets were $23.5 million at March 31, 2017 compared to $22.9 million at December 31, 2016 and $29.7 million at March 31, 2016. Nonperforming assets as a percentage of total assets were 0.91% at March 31, 2017, 0.94% at December 31, 2016 and 1.32% at March 31, 2016. The increase in the first quarter of 2017 is due to a downgrade of a $1.7 million commercial relationship partially offset by decreases in other loan categories. The reduction from the first quarter of 2016 reflects the Company’s continued efforts to minimize nonperforming assets through diligent collection efforts and prudent workout arrangements.

Balance Sheet
Total assets increased $117.8 million, or 4.8%, to $2.57 billion at March 31, 2017 from $2.45 billion at December 31, 2016. Net loans increased $65.5 million, or 3.3%, to $2.05 billion at March 31, 2017 from $1.98 billion at December 31, 2016. The net increase in loans for the three months ended March 31, 2017 was primarily due to increases of $61.4 million in commercial real estate loans, $10.7 million in construction loans and $11.3 million in commercial and industrial loans, partially offset by a decrease of $5.6 million in residential real estate loans and $11.5 million in consumer loans. Loans held for sale decreased $34.5 million, or 39.9%, to $51.9 million at March 31, 2017 from $86.4 million at December 31, 2016 due to the seasonal decrease in residential mortgage originations. Cash and cash equivalents increased $52.2 million, or 103.9%, to $102.4 million at March 31, 2017 from $50.2 million at December 31, 2016 due to a $44.0 million commercial loan payoff that occurred on the last day of the month.

Total deposits increased $120.0 million, or 6.6%, to $1.93 billion at March 31, 2017 from $1.81 billion at December 31, 2016. Compared to the prior quarter non-certificate accounts increased $98.5 million, brokered deposits increased $23.7 million and term certificate accounts decreased $2.2 million. Borrowings were $275.1 million at March 31, 2017 and December 31, 2016.

Total stockholders’ equity was $332.7 million at March 31, 2017 compared to $329.4 million at December 31, 2016 and $191.9 million at March 31, 2016. The increase from the prior year same quarter reflects the Company’s mutual to stock conversion that was completed on June 29, 2016. As part of the conversion, the Company established an ESOP which acquired 8% of the shares issued in the conversion, including shares contributed to the Foundation. The $11.1 million related to the ESOP is shown as a reduction to stockholders’ equity on the consolidated balance sheet. The tangible common equity to tangible assets ratio decreased to 12.50% at March 31, 2017 from 12.97% at December 31, 2016. At March 31, 2017, 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 Southeastern Massachusetts through a network of 14 full-service branches, two limited service branches, a commercial loan office in Providence, Rhode Island, a residential lending office in Westford, Massachusetts, and 13 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. Merrimack Mortgage Company, LLC, a subsidiary of HarborOne Bank, is a full-service mortgage lender with 34 offices in Massachusetts, New Hampshire and Maine, and also does business in seven 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, 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; 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 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,
(Dollars in thousands) 2017 2016 2016 2016 2016
 
Assets
 
Cash and due from banks $ 18,621 $ 16,464 $ 15,706 $ 18,773 $ 15,268
Short-term investments   83,778   33,751   3,549   11,365   98,991
Total cash and cash equivalents 102,399 50,215 19,255 30,138 114,259
 
Securities available for sale, at fair value 165,348 136,469 115,397 121,957 120,905
Securities held to maturity, at amortized cost 46,531 47,877 49,213 50,504 62,461
Federal Home Loan Bank stock, at cost 17,863 15,749 15,255 13,078 17,480
Loans held for sale, at fair value 51,932 86,443 114,054 99,697 67,592
Loans:
Residential real estate 765,368 770,935 774,404 773,169 777,034
Commercial real estate 557,174 495,801 450,945 377,386 300,880
Construction   69,134   58,443   40,438   31,414   41,227
Total mortgage loans on real estate 1,391,676 1,325,179 1,265,787 1,181,969 1,119,141
Commercial 111,849 100,501 88,718 82,333 78,666
Consumer   551,603   563,104   555,874   560,144   544,078
Loans 2,055,128 1,988,784 1,910,379 1,824,446 1,741,885
Less: Allowance for loan losses (16,884) (16,968) (15,832) (14,439) (13,696)
Net deferred loan costs   9,041   9,931   10,336   10,893   11,357
Net loans 2,047,285 1,981,747 1,904,883 1,820,900 1,739,546
Mortgage servicing rights, at fair value 20,839 20,333 15,534 12,688 12,330
Goodwill and other intangible assets 13,563 13,585 13,607 13,630 13,651
Other assets   100,384   95,892   99,935   104,166   96,544
Total assets $ 2,566,144 $ 2,448,310 $ 2,347,133 $ 2,266,758 $ 2,244,768
 
Liabilities and Stockholders' Equity
 
Deposits:
NOW and demand deposit accounts $ 392,012 $ 365,869 $ 358,628 $ 339,379 $ 331,709
Regular savings and club accounts 338,338 316,947 317,198 316,195 312,362
Money market deposit accounts 646,123 595,211 596,377 620,975 651,504
Brokered deposits 77,774 54,045 20,236
Term certificate accounts   470,490   472,681   442,472   433,685   456,136
Total deposits 1,924,737 1,804,753 1,734,911 1,710,234 1,751,711
Short-term borrowed funds 75,000 80,000 50,000
Long-term borrowed funds 200,118 195,119 195,120 195,096 269,597
Other liabilities and accrued expenses   33,554   39,054   39,188   37,138   31,579
Total liabilities   2,233,409   2,118,926   2,019,219   1,942,468   2,052,887
 
Common stock 321 321 321 321
Additional paid-in capital 144,555 144,420 144,175 144,107
Unearned compensation - ESOP (11,130) (11,278) (11,575) (11,872)
Retained earnings 199,946 197,211 194,275 190,723 191,404
Accumulated other comprehensive income (loss)   (957)   (1,290)   718   1,011   477
Total stockholders' equity   332,735   329,384   327,914   324,290   191,881
 

Total liabilities and
stockholders' equity

$ 2,566,144 $ 2,448,310 $ 2,347,133 $ 2,266,758 $ 2,244,768
 
                     

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

 
Quarters Ended
March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands, except per share amounts) 2017 2016 2016 2016 2016
 
Interest and dividend income:
Interest and fees on loans $ 19,135 $ 18,092 $ 17,144 $ 16,293 $ 15,643
Interest on loans held for sale 546 788 866 581 460
Interest on securities 1,216 1,002 988 1,023 1,099
Other interest and dividend income   252   167   164   209   237
Total interest and dividend income   21,149   20,049   19,162   18,106   17,439
 
Interest expense:
Interest on deposits 2,432 2,283 2,092 2,165 2,170
Interest on borrowed funds   1,285   1,211   1,168   1,289   1,383
Total interest expense   3,717   3,494   3,260   3,454   3,553
 
Net interest and dividend income 17,432 16,555 15,902 14,652 13,886
 
Provision for loan losses   265   1,456   1,710   801   205
 
Net interest income, after provision for loan losses   17,167   15,099   14,192   13,851   13,681
 
Noninterest income:
Mortgage banking income:
Changes in mortgage servicing rights fair value (442) 2,970 351 (2,163) (2,288)
Other   7,846   12,404   16,513   13,837   9,376
Total mortgage banking income 7,404 15,374 16,864 11,674 7,088
 
Deposit account fees 2,845 2,979 3,010 2,928 2,747
Income on retirement plan annuities 110 111 111 108 106
Gain on sale of consumer loans 78 29 50
Gain on sale and call of securities, net 41 242
Bank-owned life insurance income 257 263 275 274 276
Other income   760   557   609   834   553
Total noninterest income   11,454   19,284   20,869   15,888   11,062
 
Noninterest expenses:
Compensation and benefits 15,019 18,616 18,902 16,407 15,518
Occupancy and equipment 2,986 2,516 2,458 2,463 2,784
Data processing expenses 1,522 1,557 1,450 1,446 1,414
Loan expense 1,363 2,710 3,316 2,128 1,592
Marketing 482 835 592 607 565
Professional fees 930 822 709 602 577
Deposit insurance 462 208 437 418 403
Prepayment penalties on Federal Home Loan Bank 400
Charitable foundation contributions 4,820
Other expenses   1,641   2,099   1,745   1,878   1,704
Total noninterest expenses   24,405   29,363   29,609   31,169   24,557
 
Income (loss) before income taxes 4,216 5,020 5,452 (1,430) 186
 
Income tax provision (benefit)   1,481   2,084   1,900   (749)   62
 
Net income (loss) $ 2,735 $ 2,936 $ 3,552 $ (681) $ 124
 
Earnings per common share:
Basic and diluted $ 0.09 $ 0.09 $ 0.11 N/A N/A
 
Weighted average shares outstanding:
Basic and diluted 30,998,163 30,973,588 30,943,808 N/A N/A
 
                 

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income

(Unaudited)

 
Three Months Ended March 31,
(Dollars in thousands, except per share amounts) 2017 2016 $ Change % Change
 
Interest and dividend income:
Interest and fees on loans $ 19,135 $ 15,643 $ 3,492 22.3 %
Interest on loans held for sale 546 460 86 18.7
Interest on securities 1,216 1,099 117 10.6
Other interest and dividend income   252   237   15 6.3
Total interest and dividend income   21,149   17,439   3,710 21.3
 
Interest expense:
Interest on deposits 2,432 2,170 262 12.1
Interest on borrowed funds   1,285   1,383   (98) (7.1)
Total interest expense   3,717   3,553   164 4.6
 
Net interest and dividend income 17,432 13,886 3,546 25.5
 
Provision for loan losses   265   205   60 29.3
 
Net interest income, after provision for loan losses   17,167   13,681   3,486 25.5
 
Noninterest income:
Mortgage banking income:
Changes in mortgage servicing rights fair value (442) (2,288) 1,846 80.7
Other   7,846   9,376   (1,530) (16.3)
Total mortgage banking income 7,404 7,088 316 4.5
 
Deposit account fees 2,845 2,747 98 3.6
Income on retirement plan annuities 110 106 4 3.8
Gain on sale of consumer loans 78 50 28 56.0
Gain on sale and call of securities, net 242 (242) (100.0)
Bank-owned life insurance income 257 276 (19) (6.9)
Other income   760   553   207 37.4
Total noninterest income   11,454   11,062   392 3.5
 
Noninterest expenses:
Compensation and benefits 15,019 15,518 (499) (3.2)
Occupancy and equipment 2,986 2,784 202 7.3
Data processing expenses 1,522 1,414 108 7.6
Loan expense 1,363 1,592 (229) (14.4)
Marketing 482 565 (83) (14.7)
Professional fees 930 577 353 61.2
Deposit insurance 462 403 59 14.6
Other expenses   1,641   1,704   (63) (3.7)
Total noninterest expenses   24,405   24,557   (152) (0.6)
 
Income before income taxes 4,216 186 4,030 2166.7
 
Income tax provision   1,481   62   1,419 2288.7
 
Net income $ 2,735 $ 124 $ 2,611 2105.6 %
 
Earnings per common share:
Basic and diluted $ 0.09 N/A N/A
 
Weighted average shares outstanding:
Basic and diluted 30,998,163 N/A N/A
 
                           

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

 
Quarters Ended
March 31, 2017 December 31, 2016 March 31, 2016
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) $ 2,111,768 $ 19,681 3.78 % $ 2,055,444 $ 18,880 3.65 % $ 1,803,000 $ 16,103 3.59 %
Investment securities (2) 197,525 1,292 2.65 168,485 1,079 2.55 183,615 1,178 2.58
Other interest-earning assets   67,428   252 1.52   38,912   167 1.71   77,984   237 1.22
Total interest-earning assets 2,376,721   21,225 3.62 2,262,841   20,126 3.54 2,064,599   17,518 3.41
Noninterest-earning assets   124,148   126,899   122,326
Total assets $ 2,500,869 $ 2,389,740 $ 2,186,925
Interest-bearing liabilities:
Savings accounts $ 326,731 151 0.19 $ 319,166 142 0.18 $ 301,557 130 0.17
NOW accounts 123,340 19 0.06 124,134 19 0.06 116,866 18 0.06
Money market accounts 627,073 753 0.49 602,263 692 0.46 630,664 704 0.45
Certificates of deposit 469,774 1,350 1.17 458,491 1,339 1.16 458,636 1,318 1.16
Brokered deposit   65,698   159 0.98   39,689   91 0.92    
Total interest-bearing deposits 1,612,616 2,432 0.61 1,543,743 2,283 0.59 1,507,723 2,170 0.58
FHLB advances   291,896   1,285 1.79   257,568   1,211 1.87   265,392   1,383 2.10
Total interest-bearing liabilities 1,904,512   3,717 0.79 1,801,311   3,494 0.77 1,773,115   3,553 0.81
Noninterest-bearing liabilities:
Noninterest-bearing deposits 237,056 227,918 191,942
Other noninterest-bearing liabilities   28,981   31,055   29,114
Total liabilities 2,170,549 2,060,284 1,994,171
Total equity   330,320   329,456   192,754
Total liabilities and equity $ 2,500,869 $ 2,389,740 $ 2,186,925
Tax equivalent net interest income 17,508 16,632 13,965
Tax equivalent interest rate spread (3) 2.83 % 2.77 % 2.60 %
Less: tax equivalent adjustment   76   77   79
Net interest income as reported $ 17,432 $ 16,555 $ 13,886
Net interest-earning assets (4) $ 472,209 $ 461,530 $ 291,484
Net interest margin (5) 2.97 % 2.91 % 2.71 %
Tax equivalent effect 0.02 0.01 0.01

Net interest margin on a fully tax equivalent
basis

2.99 % 2.92 % 2.72 %

Average interest-earning assets to average
interest-bearing liabilities

124.79 % 126.62 % 116.44 %

 

(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 35% for all periods presented. The yield on investments before tax equivalent adjustments for the quarters presented were 2.50%, 2.37%, and 2.41%, 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, 2017 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016
(In thousands)
Interest-earning assets:
Loans (1) $ 2,111,768 $ 2,055,444 $ 1,983,249 $ 1,881,488 $ 1,803,000
Investment securities (2) 197,525 168,485 166,816 173,731 183,615
Other interest-earning assets   67,428   38,912   18,030   51,257   77,984
Total interest-earning assets 2,376,721 2,262,841 2,168,095 2,106,476 2,064,599
Noninterest-earning assets   124,148   126,899   130,498   131,104   122,326
Total assets $ 2,500,869 $ 2,389,740 $ 2,298,593 $ 2,237,580 $ 2,186,925
Interest-bearing liabilities:
Savings accounts $ 326,731 $ 319,166 $ 319,202 $ 317,180 $ 301,557
NOW accounts 123,340 124,134 120,704 120,702 116,866
Money market accounts 627,073 602,263 612,761 642,758 630,664
Certificates of deposit 469,774 458,491 434,519 446,848 458,636
Brokered deposit   65,698   39,689   549    
Total interest-bearing deposits 1,612,616 1,543,743 1,487,735 1,527,488 1,507,723
FHLB advances   291,896   257,568   232,587   239,245   265,392
Total interest-bearing liabilities 1,904,512 1,801,311 1,720,322 1,766,733 1,773,115
Noninterest-bearing liabilities:
Noninterest-bearing deposits 237,056 227,918 217,930 244,651 191,942
Other noninterest-bearing liabilities   28,981   31,055   32,888   28,887   29,114
Total liabilities 2,170,549 2,060,284 1,971,140 2,040,271 1,994,171
Total equity   330,320   329,456   327,453   197,309   192,754
Total liabilities and equity $ 2,500,869 $ 2,389,740 $ 2,298,593 $ 2,237,580 $ 2,186,925
 
Annualized Yield Trend - Quarters Ended
March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016
Interest-earning assets:
Loans (1) 3.78 % 3.65 % 3.61 % 3.61 % 3.59 %
Investment securities (2) 2.65 % 2.55 % 2.54 % 2.55 % 2.58 %
Other interest-earning assets 1.52 % 1.71 % 3.62 % 1.63 % 1.22 %
Total interest-earning assets 3.62 % 3.54 % 3.53 % 3.47 % 3.41 %
 
Interest-bearing liabilities:
Savings accounts 0.19 % 0.18 % 0.17 % 0.17 % 0.17 %
NOW accounts 0.06 % 0.06 % 0.06 % 0.06 % 0.06 %
Money market accounts 0.49 % 0.46 % 0.44 % 0.45 % 0.45 %
Certificates of deposit 1.17 % 1.16 % 1.14 % 1.16 % 1.16 %
Brokered deposit 0.98 % 0.92 % 2.17 % % %
Total interest-bearing deposits 0.61 % 0.59 % 0.56 % 0.57 % 0.58 %
FHLB advances 1.79 % 1.87 % 2.00 % 2.17 % 2.10 %
Total interest-bearing liabilities 0.79 % 0.77 % 0.75 % 0.79 % 0.81 %

 

(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): 2017 2016 2016 2016 2016
 
Return (loss) on average assets (ROAA) 0.44 % 0.49 % 0.62 % (0.12) % 0.02 %
 
Return (loss) on average equity (ROAE) 3.31 % 3.56 % 4.34 % (1.38) % 0.26 %
 
Efficiency ratio (1) 84.41 % 81.87 % 80.46 % 101.99 % 98.34 %

 

(1) 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 2017 2016 2016 2016 2016
(Dollars in thousands)
 
Total nonperforming assets $ 23,471 $ 22,946 $ 25,992 $ 27,770 $ 29,661
 
Nonperforming assets to total assets 0.91 % 0.94 % 1.11 % 1.23 % 1.32 %
 
Allowance for loan losses to total loans 0.82 % 0.85 % 0.82 % 0.79 % 0.78 %
 
Net charge offs $ 349 $ 320 $ 317 $ 58 $ 209
 
Annualized net charge offs/average loans 0.07 % 0.06 % 0.07 % 0.01 % 0.05 %
 

Allowance for loan losses to nonperforming
loans

78.17 % 80.12 % 65.92 % 55.52 % 49.56 %
 
               
March 31, December 31, September 30, June 30, March 31,
Capital and Share Related 2017 2016 2016 2016 2016
 
 
Common stock outstanding 32,120,880 32,120,880 32,120,880 32,120,880 N/A
 
Book value per share $ 10.36 $ 10.25 $ 10.21 $ 10.10 N/A
 
Tangible book value per share (1) $ 9.94 $ 9.83 $ 9.79 $ 9.67 N/A
 
Tangible common equity / tangible assets (2) 12.50 % 12.97 % 13.47 % 13.79 % 7.99 %

 

(1) This non-GAAP ratio is total stockholders' equity less goodwill and other intangible assets divided by common stock outstanding.
(2) This non-GAAP ratio is total stockholders' equity less goodwill and other intangible assets to total assets less goodwill and other intangible assets.

HarborOne Bancorp, Inc.
Joseph F. Casey, 508-895-1312
EVP, COO, CFO

Source: HarborOne Bancorp, Inc.