0001769617false00017696172023-10-242023-10-24

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

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CURRENT REPORT

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

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Date of Report (Date of Earliest Event Reported): October 24, 2023

HarborOne Bancorp, Inc.

(Exact Name of Registrant as Specified in its Charter)

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Massachusetts

001-38955

81-1607465

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification Number

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770 Oak Street, Brockton, Massachusetts 02301

(Address of principal executive offices)

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(508) 895-1000

(Registrant’s telephone number, including area code)

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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:

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☐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))

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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).

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Emerging growth company ☐

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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. ☐

Title of each Class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.01 par value

HONE

The NASDAQ Stock Market, LLC

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Item 2.02

Results of Operations and Financial Condition

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On October 24, 2023, HarborOne Bancorp, Inc. (the “Company”), the holding company for HarborOne Bank, issued a press release announcing its financial results for the quarter ended September 30, 2023.  The Company’s press release is included as Exhibit 99.1 to this report.

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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.  

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Item 7.01

Regulation FD Disclosure

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The Company has prepared an investor presentation about the Company’s operations and performance that management intends to use from time to time on and after October 24, 2023.  The investor presentation is attached as Exhibit 99.2 to this report.

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The information set forth in this Item 7.01 and in the attached Exhibit 99.2 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that Section.  

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Item 9.01Financial Statements and Exhibits

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(d)Exhibits

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Number

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Description

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99.1

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Press release dated or October 24, 2023

99.2

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Investor Presentation

104

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Cover Page Interactive Data File (formatted as inline XBRL)

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EXHIBIT INDEX

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Number

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Description

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99.1

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Press release dated October 24, 2023

99.2

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Investor Presentation

104

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Cover Page Interactive Data File (formatted as inline XBRL)

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SIGNATURE

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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.

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3

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HARBORONE BANCORP, INC.

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By:

/s/ Joseph F. Casey

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Name:

Joseph F. Casey

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Title:

President and

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Chief Executive Officer

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Date: October 24, 2023

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Exhibit 99.1

Graphic

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HarborOne Bancorp, Inc. Announces 2023 Third Quarter Earnings

Contact: Joseph F. Casey, President and CEO

Brockton, Massachusetts (October 24, 2023): HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $8.4 million, or $0.20 per diluted share, for the third quarter of 2023, compared to net income of $7.5 million, or $0.17 per diluted share, for the preceding quarter and net income of $13.8 million, or $0.30 per diluted share, for the same period last year.

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Selected Financial Highlights:

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●Deposit growth, excluding brokered deposits, of $160.5 million, or 4.0%, on a linked-quarter basis.
●Reduced noninterest expense 7.5% as compared to the prior year third quarter.
●Loan growth of $24.7 million, or 0.5%, on a linked-quarter basis.
●Commenced sixth share repurchase program.

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“As many of our competitors struggled with deposit contraction, we grew the average balance of customer deposits at a 14.7% annualized pace in Q3. This strong deposit growth allowed the pay-down of over $167 million in wholesale funds during the quarter,” said Joseph F. Casey, President and CEO. “Additionally, we expect to redeem $35 million in subordinated debt on December 1, 2023, which carries a current annualized expense rate of 8.45%. And we continue to return shareholder value, commencing a sixth stock buyback plan in Q3, purchasing $6.4 million of HarborOne shares at an average cost of $9.81 per share.”

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Net Interest Income

The Company’s net interest and dividend income was $31.1 million for the quarter ended September 30, 2023, compared to $32.1 million for the quarter ended June 30, 2023, and $39.3 million for the quarter ended September 30, 2022. The tax equivalent interest rate spread and net interest margin were 1.70% and 2.34%, respectively, for the quarter ended September 30, 2023, compared to 1.89% and 2.45%, respectively, for the quarter ended June 30, 2023, and 3.30% and 3.47%, respectively, for the quarter ended September 30, 2022.

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On a linked-quarter basis, the decreases in net interest and dividend income, tax equivalent interest rate spread, and net interest margin primarily reflect a higher cost of funding, partially offset by increased loan balances and yields, with liability repricing outpacing assets. While the yield on interest-earning assets increased 11 basis points from the preceding quarter, the cost of interest-bearing liabilities increased 30 basis points, in a competitive deposit pricing market.

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The $8.3 million decrease in net interest and dividend income from the prior year quarter reflects an increase of $26.9 million, or 514.2%, in total interest expense, partially offset by an increase of $18.6 million, or 41.8%, in total interest and dividend income. The changes reflect rate and volume changes in both interest-bearing assets and liabilities. The cost of interest-bearing liabilities increased 241 basis points, while the average balance increased $880.8 million, and the yield on interest-earning assets increased 81 basis points, while the average balance increased $808.0 million.

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Noninterest Income

Total noninterest income decreased $1.1 million, or 8.4%, to $11.6 million for the quarter ended September 30, 2023, from $12.7 million for the quarter ended June 30, 2023. Persistent low inventory of for-sale residential real estate and rising mortgage interest rates continued to impact the results of HarborOne Mortgage, LLC (“HarborOne Mortgage”) with gain on loan sales of $2.7 million from mortgage loan closings of $157.6 million for the quarter ended September 30, 2023, compared to $3.3 million in gain on sales from mortgage loan closings of $172.2 million in the preceding quarter.

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The increase in the fair value of mortgage servicing rights (“MSR”) for the three months ended September 30, 2023 was $770,000, as compared to an increase of $915,000 in the fair value of MSR for the three months ended June 30, 2023. The valuation was positively impacted by key benchmark mortgage rates, which were partially offset by the impact of MSR price caps used in the valuation model. The impact on the MSR of principal payments on the underlying mortgages was $645,000 and $479,000 for the quarters ended September 30, 2023 and June 30, 2023, respectively.

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Total noninterest income decreased $2.6 million, or 18.6%, compared to the quarter ended September 30, 2022, primarily due to a $3.0 million, or 36.9%, decrease in mortgage banking income. The prior year quarter also reflected a $1.8 million increase in the fair value of MSR. The impact of rising interest rates on the fair value of MSR diminishes as the valuations reach multiple caps.

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

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Noninterest Expense

Total noninterest expenses were at $31.9 million for the quarter ended September 30, 2023, as compared to $31.7 million for the quarter ended June 30, 2023. Compensation and benefits increased $479,000, primarily reflecting increased incentive accruals partially offset by decreased salary and payroll tax expense. Occupancy and equipment expense decreased $203,000, reflecting recent cost saving measures. HarborOne Mortgage continues to enact cost saving measures and executed a reduction in force in the third quarter with an annual cost savings of $564,000.

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Total noninterest expenses decreased $2.6 million, or 7.5%, from the quarter ended September 30, 2022. Compensation and benefits decreased $2.3 million, primarily reflecting decreased mortgage origination commission and incentive accruals, and occupancy and equipment expense decreased $399,000. These decreases were partially offset by a $647,000 increase in deposit insurance expense.

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Asset Quality and Allowance for Credit Losses

Total nonperforming assets were $18.8 million at September 30, 2023, compared to $20.2 million at June 30, 2023 and $23.4 million at September 30, 2022. Nonperforming assets as a percentage of total assets were 0.33% at September 30, 2023, 0.36% at June 30, 2023, and 0.47% at September 30, 2022.

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The Company recorded a reversal of provision for credit losses of $113,000 for the quarter ended September 30, 2023, reflecting a $586,000 reversal of provision for unfunded commitments, partially offset by a $474,000 provision for loan credit losses, primarily for loan growth. Net recoveries totaled $18,000 and $799,000 for the quarters ended September 30, 2023 and 2022, respectively. Net charge-offs totaled $2.7 million, or 0.23% of average loans outstanding on an annualized basis, for the quarter ended June 30, 2023.

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The allowance for credit losses (“ACL”) on loans was $48.3 million, or 1.02% of total loans, at September 30, 2023, compared to $47.8 million, or 1.02% of total loans, at June 30, 2023 and $44.6 million, or 1.06% of total loans, at September 30, 2022. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheets, amounted to $4.2 million at September 30, 2023 as compared to $4.8 million at June 30, 2023 and $5.5 million at September 30, 2022.

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Management continues to closely monitor the loan portfolio for signs of deterioration in light of speculation that commercial real estate values may deteriorate as the market adjusts to higher vacancies and interest rates. The commercial real estate portfolio is centered in New England, with approximately 75% of the portfolio secured by property located in Massachusetts and Rhode Island. Approximately 60% of the commercial real estate loans are fixed-rate loans with, in the opinion of management, limited near-term maturity risk.

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Management also continues to monitor certain sectors within the commercial real estate segment that may be particularly susceptible to increased credit risk as a result of trends that were precipitated by the COVID-19 pandemic and may be exacerbated by current economic conditions. This includes business-oriented hotels, non-anchored retail space, and metro office space. As of September 30, 2023, business-oriented hotels loans included 13 loans with a total outstanding balance of $114.4 million, non-anchored retail space loans included 30 loans with a total outstanding balance of $40.4 million, and metro office space loans included two loans with a total outstanding balance of $12.0 million. As of September 30, 2023, there was one metro office space loan with a carrying value of $7.0 million that was rated doubtful and on nonaccrual and one business-oriented hotel credit with a carrying value of $1.7 million that was rated substandard and on nonaccrual. The other loans in these groups were performing in accordance with their terms.

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Balance Sheet

Total assets were flat, at $5.66 billion as of September 30, 2023 and June 30, 2023, as an increase of $24.7 million in total loans was offset by decreases in investments and Federal Home Loan Bank (“FHLB”) stock.

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Available-for-sale securities were $271.1 million and $292.0 million at September 30, 2023 and June 30, 2023, respectively. The unrealized loss on securities available for sale increased to $81.3 million as of September 30, 2023, as compared to $66.5 million of unrealized losses as of June 30, 2023. Securities held to maturity were $19.8 million, or 0.3%, of total assets, with a fair value of $18.7 million.

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Loans increased $24.7 million, or 0.5%, to $4.72 billion at September 30, 2023, from $4.70 billion at June 30, 2023. The increase in loans for the three months ended September 30, 2023 was primarily due to increases in commercial real estate loans of $63.2 million and residential real estate loans of $5.2 million, partially offset by decreases in commercial construction loans of $37.7 million, commercial and industrial loans of $2.9 million, and consumer loans of $3.2 million. Management continues to seek prudent commercial lending opportunities to deepen relationships with existing customers and develop new relationships with strong borrowers.

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Total deposits were $4.41 billion at September 30, 2023 and $4.29 billion at June 30, 2023. Compared to the prior quarter, non-certificate accounts increased $44.2 million and term certificate accounts increased $116.3 million, as competitive rate specials attracted deposits during the quarter. Brokered deposits decreased $38.1 million. As of September 30, 2023, FDIC-insured deposits were approximately 66% of total deposits, including Bank subsidiary deposits. Including Depositors Insurance Fund (“DIF”), excess insurance coverage that

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

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remains available until February 24, 2024, insured deposits are approximately 85% of total deposits, including Bank subsidiary deposits. Although the Bank exited the DIF as of February 24, 2023, insurance remains in place for funds on deposit as of that date for one year or until maturity for term certificates.

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FHLB borrowings decreased $129.1 million to $475.5 million at September 30, 2023 from $604.6 million at June 30, 2023. As of September 30, 2023, the Bank had $1.28 billion in available borrowing capacity across multiple relationships. Additionally, on October 19, 2023, the Company notified holders of its subordinated debt that the Company had exercised its option to redeem the debt effective December 1, 2023. The current interest rate on the $35.0 million outstanding subordinated notes is 8.45%.  

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Total stockholders’ equity was $584.6 million at September 30, 2023, compared to $595.5 million at June 30, 2023 and $611.4 million at September 30, 2022. Stockholders’ equity decreased 1.8% when compared to the prior quarter, as earnings were offset by share repurchases. The Company commenced a sixth share repurchase program during the third quarter of 2023, repurchasing 652,523 shares at an average price of $9.93, including $0.10 per share of excise tax, during the three months ended September 30, 2023. The tangible-common-equity-to-tangible-assets ratio(1) was 9.17% at September 30, 2023, 9.38% at June 30, 2023, and 10.97% at September 30, 2022. At September 30, 2023, the Company and the Bank had strong capital positions, exceeded all regulatory capital requirements, and are considered well-capitalized.

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About HarborOne Bancorp, Inc.

HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered trust company. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 30 full-service banking centers located in Massachusetts and Rhode Island, and commercial lending offices in Boston, Massachusetts and Providence, Rhode Island. HarborOne Bank also provides a range of educational resources through “HarborOne U,” with free digital content, webinars, and recordings for small business and personal financial education. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, provides mortgage lending services throughout New England and other states.

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(1) This non-GAAP ratio is total stockholders equity less goodwill and intangible assets to total assets less goodwill and intangible assets.

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HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

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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. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. 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, changes in general business and economic conditions (including inflation and concerns about inflation) on a national basis and 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 customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; acquisitions may not produce results at levels or within time frames originally anticipated; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and future pandemics; changes in 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 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’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.

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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 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.

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HarborOne Bancorp, Inc.

Consolidated Balance Sheet Trend

(Unaudited)

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September 30,

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  June 30,   

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  March 31,  

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December 31,

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September 30,

(in thousands)

    

2023

    

2023

    

2023

    

2022

    

2022

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Assets

 

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Cash and due from banks

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$

38,573

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$

43,525

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$

38,989

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$

39,712

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$

39,910

Short-term investments

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​

208,211

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​

209,326

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​

210,765

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​

58,305

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​

46,044

Total cash and cash equivalents

​

​

246,784

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​

252,851

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​

249,754

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​

98,017

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​

85,954

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​

​

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​

​

​

​

​

​

​

​

​

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Securities available for sale, at fair value

​

​

271,078

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​

292,012

​

​

303,059

​

​

301,149

​

​

304,852

Securities held to maturity, at amortized cost

​

​

19,795

​

​

19,839

​

​

19,838

​

​

19,949

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​

15,000

Federal Home Loan Bank stock, at cost

​

​

23,378

​

​

27,123

​

​

23,589

​

​

20,071

​

​

15,973

Asset held for sale

​

​

966

​

​

966

​

​

—

​

​

—

​

​

—

Loans held for sale, at fair value

​

​

17,796

​

​

20,949

​

​

13,956

​

​

18,544

​

​

18,805

Loans:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial real estate

​

​

2,349,886

​

​

2,286,688

​

​

2,286,727

​

​

2,250,344

​

​

2,041,905

Commercial construction

​

​

191,224

​

​

228,902

​

​

212,689

​

​

199,311

​

​

185,062

Commercial and industrial

​

​

450,547

​

​

453,422

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​

423,036

​

​

424,275

​

​

397,112

Total commercial loans

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​

2,991,657

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​

2,969,012

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​

2,922,452

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​

2,873,930

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​

2,624,079

Residential real estate

​

​

1,706,950

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​

1,701,766

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​

1,667,934

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​

1,634,319

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​

1,520,809

Consumer

​

​

24,247

​

​

27,425

​

​

32,246

​

​

41,421

​

​

52,466

Loans

​

​

4,722,854

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​

4,698,203

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​

4,622,632

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​

4,549,670

​

​

4,197,354

Less: Allowance for credit losses on loans

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​

(48,312)

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​

(47,821)

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​

(46,994)

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​

(45,236)

​

​

(44,621)

Net loans

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​

4,674,542

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4,650,382

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​

4,575,638

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​

4,504,434

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​

4,152,733

Mortgage servicing rights, at fair value

​

​

49,201

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​

48,176

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​

47,080

​

​

48,138

​

​

49,861

Goodwill

​

​

69,802

​

​

69,802

​

​

69,802

​

​

69,802

​

​

69,802

Other intangible assets

​

​

1,704

​

​

1,893

​

​

2,082

​

​

2,272

​

​

2,461

Other assets

​

​

289,341

​

​

275,261

​

​

268,060

​

​

277,169

​

​

272,202

Total assets

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$

5,664,387

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$

5,659,254

​

$

5,572,858

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$

5,359,545

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$

4,987,643

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Liabilities and Stockholders' Equity

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Deposits:

​

​

​

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​

​

​

​

​

​

​

​

​

​

​

Demand deposit accounts

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$

708,847

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$

717,572

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$

726,548

​

$

762,576

​

$

795,945

NOW accounts

​

​

289,141

​

​

286,956

​

​

287,376

​

​

297,692

​

​

308,191

Regular savings and club accounts

​

​

1,324,635

​

​

1,390,906

​

​

1,455,318

​

​

1,468,172

​

​

1,289,825

Money market deposit accounts

​

​

951,128

​

​

834,120

​

​

796,008

​

​

861,704

​

​

889,517

Term certificate accounts

​

​

859,266

​

​

742,931

​

​

653,553

​

​

497,975

​

​

484,936

Brokered deposits

​

​

276,941

​

​

315,003

​

​

322,927

​

​

301,380

​

​

114,696

Total deposits

​

​

4,409,958

​

​

4,287,488

​

​

4,241,730

​

​

4,189,499

​

​

3,883,110

FHLB borrowings

​

​

475,470

​

​

604,568

​

​

590,665

​

​

400,675

​

​

345,684

Subordinated debt

​

​

34,380

​

​

34,348

​

​

34,317

​

​

34,285

​

​

34,254

Other liabilities and accrued expenses

​

​

159,945

​

​

137,318

​

​

106,352

​

​

118,110

​

​

113,225

Total liabilities

​

​

5,079,753

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​

5,063,722

​

​

4,973,064

​

​

4,742,569

​

​

4,376,273

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Common stock

​

​

597

​

​

597

​

​

597

​

​

596

​

​

593

Additional paid-in capital

​

​

485,144

​

​

484,544

​

​

483,831

​

​

483,031

​

​

480,617

Unearned compensation - ESOP

​

​

(26,245)

​

​

(26,704)

​

​

(27,164)

​

​

(27,623)

​

​

(28,083)

Retained earnings

​

​

369,930

​

​

364,709

​

​

360,454

​

​

356,438

​

​

350,049

Treasury stock

​

​

(187,803)

​

​

(181,324)

​

​

(175,514)

​

​

(148,384)

​

​

(143,125)

Accumulated other comprehensive loss

​

​

(56,989)

​

​

(46,290)

​

​

(42,410)

​

​

(47,082)

​

​

(48,681)

Total stockholders' equity

​

​

584,634

​

​

595,532

​

​

599,794

​

​

616,976

​

​

611,370

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total liabilities and stockholders' equity

​

$

5,664,387

​

$

5,659,254

​

$

5,572,858

​

$

5,359,545

​

$

4,987,643

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

September 30,

​

   June 30,   

​

   March 31,   

​

December 31,

​

September 30,

(in thousands, except share data)

    

2023

    

2023

    

2023

    

2022

    

2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest and dividend income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest and fees on loans

​

$

58,124

​

$

55,504

​

$

52,771

​

$

49,177

​

$

42,065

Interest on loans held for sale

​

​

370

​

​

326

​

​

286

​

​

334

​

​

377

Interest on securities

​

​

2,003

​

​

2,035

​

​

2,079

​

​

2,045

​

​

1,971

Other interest and dividend income

​

​

2,667

​

​

2,935

​

​

803

​

​

359

​

​

143

Total interest and dividend income

​

​

63,164

​

​

60,800

​

​

55,939

​

​

51,915

​

​

44,556

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest on deposits

​

​

25,039

​

​

20,062

​

​

15,913

​

​

8,499

​

​

3,491

Interest on FHLB and FRB borrowings

​

​

6,439

​

​

8,114

​

​

5,105

​

​

3,703

​

​

1,209

Interest on subordinated debentures

​

​

606

​

​

524

​

​

523

​

​

524

​

​

524

Total interest expense

​

​

32,084

​

​

28,700

​

​

21,541

​

​

12,726

​

​

5,224

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest and dividend income

​

​

31,080

​

​

32,100

​

​

34,398

​

​

39,189

​

​

39,332

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Provision (benefit) for credit losses

​

​

(113)

​

​

3,283

​

​

1,866

​

​

2,108

​

​

668

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest and dividend income, after provision for credit losses

​

​

31,193

​

​

28,817

​

​

32,532

​

​

37,081

​

​

38,664

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage banking income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gain on sale of mortgage loans

​

​

2,704

​

​

3,300

​

​

2,224

​

​

2,301

​

​

3,809

Changes in mortgage servicing rights fair value

​

​

125

​

​

436

​

​

(1,692)

​

​

(2,631)

​

​

1,816

Other

​

​

2,270

​

​

2,312

​

​

2,216

​

​

2,325

​

​

2,453

Total mortgage banking income

​

​

5,099

​

​

6,048

​

​

2,748

​

​

1,995

​

​

8,078

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Deposit account fees

​

​

5,133

​

​

5,012

​

​

4,733

​

​

5,031

​

​

4,870

Income on retirement plan annuities

​

​

146

​

​

128

​

​

119

​

​

118

​

​

119

Bank-owned life insurance income

​

​

531

​

​

511

​

​

500

​

​

501

​

​

503

Other income

​

​

689

​

​

963

​

​

590

​

​

2,255

​

​

675

Total noninterest income

​

​

11,598

​

​

12,662

​

​

8,690

​

​

9,900

​

​

14,245

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest expenses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Compensation and benefits

​

​

18,699

​

​

18,220

​

​

17,799

​

​

20,104

​

​

20,991

Occupancy and equipment

​

​

4,430

​

​

4,633

​

​

5,040

​

​

4,935

​

​

4,829

Data processing

​

​

2,548

​

​

2,403

​

​

2,346

​

​

2,359

​

​

2,311

Loan expense

​

​

385

​

​

417

​

​

313

​

​

169

​

​

355

Marketing

​

​

794

​

​

925

​

​

1,181

​

​

862

​

​

850

Professional fees

​

​

1,374

​

​

1,114

​

​

1,501

​

​

1,446

​

​

1,457

Deposit insurance

​

​

1,004

​

​

1,176

​

​

510

​

​

385

​

​

357

Other expenses

​

​

2,638

​

​

2,837

​

​

2,819

​

​

4,384

​

​

3,323

Total noninterest expenses

​

​

31,872

​

​

31,725

​

​

31,509

​

​

34,644

​

​

34,473

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income before income taxes

​

​

10,919

​

​

9,754

​

​

9,713

​

​

12,337

​

​

18,436

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income tax provision

​

​

2,507

​

​

2,275

​

​

2,416

​

​

2,760

​

​

4,678

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

$

8,412

​

$

7,479

​

$

7,297

​

$

9,577

​

$

13,758

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Earnings per common share:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Basic

​

$

0.20

​

$

0.17

​

$

0.16

​

$

0.21

​

$

0.30

Diluted

​

$

0.20

​

$

0.17

​

$

0.16

​

$

0.21

​

$

0.30

Weighted average shares outstanding:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Basic

​

​

42,876,893

​

​

43,063,507

​

​

44,857,224

​

​

45,321,491

​

​

45,830,737

Diluted

​

​

42,983,477

​

​

43,133,455

​

​

45,284,240

​

​

45,861,658

​

​

46,420,527

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Nine Months Ended September 30,

​

​

​

​

​

(dollars in thousands, except share data)

    

2023

    

2022

    

$ Change

    

% Change

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest and dividend income:

​

​

​

​

​

​

​

​

​

​

​

​

Interest and fees on loans

​

$

166,399

​

$

113,163

​

$

53,236

​

47.0

%

Interest on loans held for sale

​

​

982

​

​

972

​

​

10

​

1.0

​

Interest on securities

​

​

6,117

​

​

5,545

​

​

572

​

10.3

​

Other interest and dividend income

​

​

6,405

​

​

335

​

​

6,070

​

1811.9

​

Total interest and dividend income

​

​

179,903

​

​

120,015

​

​

59,888

​

49.9

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest expense:

​

​

​

​

​

​

​

​

​

​

​

​

Interest on deposits

​

​

61,014

​

​

7,131

​

​

53,883

​

755.6

​

Interest on FHLB and FRB borrowings

​

​

19,658

​

​

1,516

​

​

18,142

​

1196.7

​

Interest on subordinated debentures

​

​

1,653

​

​

1,571

​

​

82

​

5.2

​

Total interest expense

​

​

82,325

​

​

10,218

​

​

72,107

​

705.7

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest and dividend income

​

​

97,578

​

​

109,797

​

​

(12,219)

​

(11.1)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Provision for credit losses

​

​

5,036

​

​

3,552

​

​

1,484

​

41.8

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest and dividend income, after provision for credit losses

​

​

92,542

​

​

106,245

​

​

(13,703)

​

(12.9)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage banking income:

​

​

​

​

​

​

​

​

​

​

​

​

Gain on sale of mortgage loans

​

​

8,228

​

​

13,669

​

​

(5,441)

​

(39.8)

​

Changes in mortgage servicing rights fair value

​

​

(1,131)

​

​

7,963

​

​

(9,094)

​

(114.2)

​

Other

​

​

6,798

​

​

7,623

​

​

(825)

​

(10.8)

​

Total mortgage banking income

​

​

13,895

​

​

29,255

​

​

(15,360)

​

(52.5)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Deposit account fees

​

​

14,878

​

​

14,234

​

​

644

​

4.5

​

Income on retirement plan annuities

​

​

393

​

​

338

​

​

55

​

16.3

​

Bank-owned life insurance income

​

​

1,542

​

​

1,480

​

​

62

​

4.2

​

Other income

​

​

2,242

​

​

2,102

​

​

140

​

6.7

​

Total noninterest income

​

​

32,950

​

​

47,409

​

​

(14,459)

​

(30.5)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest expenses:

​

​

​

​

​

​

​

​

​

​

​

​

Compensation and benefits

​

​

54,718

​

​

63,169

​

​

(8,451)

​

(13.4)

​

Occupancy and equipment

​

​

14,103

​

​

14,832

​

​

(729)

​

(4.9)

​

Data processing

​

​

7,297

​

​

6,811

​

​

486

​

7.1

​

Loan expense

​

​

1,115

​

​

1,218

​

​

(103)

​

(8.5)

​

Marketing

​

​

2,900

​

​

3,054

​

​

(154)

​

(5.0)

​

Professional fees

​

​

3,989

​

​

4,676

​

​

(687)

​

(14.7)

​

Deposit insurance

​

​

2,690

​

​

1,060

​

​

1,630

​

153.8

​

Other expenses

​

​

8,294

​

​

9,442

​

​

(1,148)

​

(12.2)

​

Total noninterest expenses

​

​

95,106

​

​

104,262

​

​

(9,156)

​

(8.8)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income before income taxes

​

​

30,386

​

​

49,392

​

​

(19,006)

​

(38.5)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income tax provision

​

​

7,198

​

​

13,380

​

​

(6,182)

​

(46.2)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

$

23,188

​

$

36,012

​

$

(12,824)

​

(35.6)

%

​

​

​

​

​

​

​

​

​

​

​

​

​

Earnings per common share:

​

​

​

​

​

​

​

​

​

​

​

​

Basic

​

$

0.53

​

$

0.77

​

​

​

​

​

​

Diluted

​

$

0.53

​

$

0.76

​

​

​

​

​

​

Weighted average shares outstanding:

​

​

​

​

​

​

​

​

​

​

​

​

Basic

​

​

43,591,954

​

​

46,875,312

​

​

​

​

​

​

Diluted

​

​

43,793,137

​

​

47,541,647

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

​

September 30, 2023

​

June 30, 2023

​

September 30, 2022

​

​

​

Average

​

​

​

​

​

Average

​

​

​

​

​

Average

​

​

​

​

​

​

​

Outstanding

​

​

​

Yield/

​

Outstanding

​

​

​

Yield/

​

Outstanding

​

​

​

Yield/

​

​

    

Balance

    

Interest

    

Cost (8)

    

Balance

    

Interest

    

Cost (8)

 

Balance

    

Interest

    

Cost (8)

 

​

​

(dollars in thousands)

​

Interest-earning assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment securities (1)

​

$

375,779

​

$

2,003

​

2.11

%

$

381,762

​

$

2,035

​

2.14

%

$

390,577

​

$

1,971

​

2.00

%

Other interest-earning assets

​

​

207,234

​

​

2,667

​

5.11

​

​

238,891

​

​

2,935

​

4.93

​

​

27,723

​

​

143

​

2.05

​

Loans held for sale

​

​

20,919

​

​

370

​

7.02

​

​

19,614

​

​

326

​

6.67

​

​

28,046

​

​

377

​

5.33

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial loans (2)(3)

​

​

2,980,817

​

​

40,438

​

5.38

​

​

2,938,292

​

​

38,842

​

5.30

​

​

2,522,359

​

​

28,298

​

4.45

​

Residential real estate loans (3)(4)

​

​

1,700,383

​

​

17,525

​

4.09

​

​

1,682,860

​

​

16,456

​

3.92

​

​

1,470,305

​

​

12,972

​

3.50

​

Consumer loans (3)

​

​

25,126

​

​

412

​

6.51

​

​

29,025

​

​

419

​

5.79

​

​

63,220

​

​

795

​

4.99

​

Total loans

​

​

4,706,326

​

​

58,375

​

4.92

​

​

4,650,177

​

​

55,717

​

4.81

​

​

4,055,884

​

​

42,065

​

4.11

​

Total interest-earning assets

​

​

5,310,258

​

​

63,415

​

4.74

​

​

5,290,444

​

​

61,013

​

4.63

​

​

4,502,230

​

​

44,556

​

3.93

​

Noninterest-earning assets

​

​

314,030

​

​

​

​

​

​

​

305,132

​

​

​

​

​

​

​

308,734

​

​

​

​

​

​

Total assets

​

$

5,624,288

​

​

​

​

​

​

$

5,595,576

​

​

​

​

​

​

$

4,810,964

​

​

​

​

​

​

Interest-bearing liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Savings accounts

​

$

1,360,728

​

​

6,787

​

1.98

​

$

1,421,622

​

​

6,165

​

1.74

​

$

1,293,598

​

​

1,211

​

0.37

​

NOW accounts

​

​

274,329

​

​

75

​

0.11

​

​

280,501

​

​

59

​

0.08

​

​

305,777

​

​

42

​

0.05

​

Money market accounts

​

​

910,694

​

​

8,355

​

3.64

​

​

802,373

​

​

6,256

​

3.13

​

​

893,452

​

​

1,382

​

0.61

​

Certificates of deposit

​

​

818,182

​

​

7,212

​

3.50

​

​

708,087

​

​

5,273

​

2.99

​

​

486,923

​

​

787

​

0.64

​

Brokered deposits

​

​

287,428

​

​

2,610

​

3.60

​

​

281,614

​

​

2,309

​

3.29

​

​

102,875

​

​

69

​

0.27

​

Total interest-bearing deposits

​

​

3,651,361

​

​

25,039

​

2.72

​

​

3,494,197

​

​

20,062

​

2.30

​

​

3,082,625

​

​

3,491

​

0.45

​

FHLB and FRB borrowings

​

​

508,001

​

​

6,439

​

5.03

​

​

666,345

​

​

8,114

​

4.88

​

​

196,036

​

​

1,209

​

2.45

​

Subordinated debentures

​

​

34,364

​

​

606

​

7.00

​

​

34,331

​

​

524

​

6.12

​

​

34,237

​

​

524

​

6.07

​

Total borrowings

​

​

542,365

​

​

7,045

​

5.15

​

​

700,676

​

​

8,638

​

4.94

​

​

230,273

​

​

1,733

​

2.99

​

Total interest-bearing liabilities

​

​

4,193,726

​

​

32,084

​

3.04

​

​

4,194,873

​

​

28,700

​

2.74

​

​

3,312,898

​

​

5,224

​

0.63

​

Noninterest-bearing liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest-bearing deposits

​

​

705,009

​

​

​

​

​

​

​

712,081

​

​

​

​

​

​

​

789,214

​

​

​

​

​

​

Other noninterest-bearing liabilities

​

​

126,742

​

​

​

​

​

​

​

88,363

​

​

​

​

​

​

​

80,304

​

​

​

​

​

​

Total liabilities

​

​

5,025,477

​

​

​

​

​

​

​

4,995,317

​

​

​

​

​

​

​

4,182,416

​

​

​

​

​

​

Total stockholders' equity

​

​

598,811

​

​

​

​

​

​

​

600,259

​

​

​

​

​

​

​

628,548

​

​

​

​

​

​

Total liabilities and stockholders' equity

​

$

5,624,288

​

​

​

​

​

​

$

5,595,576

​

​

​

​

​

​

$

4,810,964

​

​

​

​

​

​

Tax equivalent net interest income

​

​

​

​

​

31,331

​

​

​

​

​

​

​

32,313

​

​

​

​

​

​

​

39,332

​

​

​

Tax equivalent interest rate spread (5)

​

​

​

​

​

​

​

1.70

%  

​

​

​

​

​

​

1.89

%  

​

​

​

​

​

​

3.30

%

Less: tax equivalent adjustment

​

​

​

​

​

251

​

​

​

​

​

​

​

213

​

​

​

​

​

​

​

—

​

​

​

Net interest income as reported

​

​

​

​

$

31,080

​

​

​

​

​

​

$

32,100

​

​

​

​

​

​

$

39,332

​

​

​

Net interest-earning assets (6)

​

$

1,116,532

​

​

​

​

​

​

$

1,095,571

​

​

​

​

​

​

$

1,189,332

​

​

​

​

​

​

Net interest margin (7)

​

​

​

​

​

​

​

2.32

%  

​

​

​

​

​

​

2.43

%  

​

​

​

​

​

​

3.47

%

Tax equivalent effect

​

​

​

​

​

​

​

0.02

​

​

​

​

​

​

​

0.02

​

​

​

​

​

​

​

—

​

Net interest margin on a fully tax equivalent basis

​

​

​

​

​

​

​

2.34

%

​

​

​

​

​

​

2.45

%

​

​

​

​

​

​

3.47

%

Ratio of interest-earning assets to interest-bearing liabilities

​

​

126.62

%  

​

​

​

​

​

​

126.12

%  

​

​

​

​

​

​

135.90

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Supplemental information:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total deposits, including demand deposits

​

$

4,356,370

​

$

25,039

​

​

​

$

4,206,278

​

$

20,062

​

​

​

$

3,871,839

​

$

3,491

​

​

​

Cost of total deposits

​

​

​

​

​

​

​

2.28

%

​

​

​

​

​

​

1.91

%

​

​

​

​

​

​

0.36

%

Total funding liabilities, including demand deposits

​

$

4,898,735

​

$

32,084

​

​

​

$

4,906,954

​

$

28,700

​

​

​

$

4,102,112

​

$

5,224

​

​

​

Cost of total funding liabilities

​

​

​

​

​

​

​

2.60

%

​

​

​

​

​

​

2.35

%

​

​

​

​

​

​

0.51

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1) Includes securities available for sale and securities held to maturity.

​

(2) Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis.

​

(3) Includes nonaccruing loan balances and interest received on such loans.

​

(4) Includes the basis adjustments of certain loans included in fair value hedging relationships.

​

(5) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

​

(6) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

​

(7) Net interest margin represents net interest income divided by average total interest-earning assets.

​

(8) Annualized.

​

​

​

​

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Nine Months Ended

​

​

​

September 30, 2023

​

September 30, 2022

​

​

​

Average

​

​

​

                  

​

Average

​

​

​

                  

​

​

​

Outstanding

​

                      

​

Yield/

​

Outstanding

​

                      

​

Yield/

​

​

    

Balance

    

Interest

    

Cost (8)

    

Balance

    

Interest

    

Cost (8)

 

​

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest-earning assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment securities (1)

​

$

381,572

​

$

6,117

​

2.14

%

$

391,786

​

$

5,545

​

1.89

%

Other interest-earning assets

​

​

170,377

​

​

6,405

​

5.03

​

​

80,540

​

​

335

​

0.56

​

Loans held for sale

​

​

19,557

​

​

982

​

6.71

​

​

29,114

​

​

972

​

4.46

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial loans (2)(3)

​

​

2,940,483

​

​

116,116

​

5.28

​

​

2,400,290

​

​

75,688

​

4.22

​

Residential real estate loans (3)(4)

​

​

1,676,979

​

​

49,598

​

3.95

​

​

1,341,508

​

​

34,296

​

3.42

​

Consumer loans (3)

​

​

30,112

​

​

1,350

​

5.99

​

​

89,934

​

​

3,179

​

4.73

​

Total loans

​

​

4,647,574

​

​

167,064

​

4.81

​

​

3,831,732

​

​

113,163

​

3.95

​

Total interest-earning assets

​

​

5,219,080

​

​

180,568

​

4.63

​

​

4,333,172

​

​

120,015

​

3.70

​

Noninterest-earning assets

​

​

310,826

​

​

​

​

​

​

​

315,781

​

​

​

​

​

​

Total assets

​

$

5,529,906

​

​

​

​

​

​

$

4,648,953

​

​

​

​

​

​

Interest-bearing liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Savings accounts

​

$

1,413,553

​

​

18,397

​

1.74

​

$

1,242,533

​

​

2,203

​

0.24

​

NOW accounts

​

​

276,872

​

​

170

​

0.08

​

​

306,115

​

​

116

​

0.05

​

Money market accounts

​

​

846,235

​

​

19,849

​

3.14

​

​

879,310

​

​

2,320

​

0.35

​

Certificates of deposit

​

​

693,941

​

​

15,170

​

2.92

​

​

497,744

​

​

2,186

​

0.59

​

Brokered deposits

​

​

299,665

​

​

7,428

​

3.31

​

​

100,969

​

​

306

​

0.41

​

Total interest-bearing deposits

​

​

3,530,266

​

​

61,014

​

2.31

​

​

3,026,671

​

​

7,131

​

0.32

​

FHLB and FRB borrowings

​

​

541,034

​

​

19,658

​

4.86

​

​

96,015

​

​

1,516

​

2.11

​

Subordinated debentures

​

​

34,331

​

​

1,653

​

6.44

​

​

34,206

​

​

1,571

​

6.14

​

Total borrowings

​

​

575,365

​

​

21,311

​

4.95

​

​

130,221

​

​

3,087

​

3.17

​

Total interest-bearing liabilities

​

​

4,105,631

​

​

82,325

​

2.68

​

​

3,156,892

​

​

10,218

​

0.43

​

Noninterest-bearing liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest-bearing deposits

​

​

712,815

​

​

​

​

​

​

​

765,479

​

​

​

​

​

​

Other noninterest-bearing liabilities

​

​

105,732

​

​

​

​

​

​

​

80,727

​

​

​

​

​

​

Total liabilities

​

​

4,924,178

​

​

​

​

​

​

​

4,003,098

​

​

​

​

​

​

Total stockholders' equity

​

​

605,728

​

​

​

​

​

​

​

645,855

​

​

​

​

​

​

Total liabilities and stockholders' equity

​

$

5,529,906

​

​

​

​

​

​

$

4,648,953

​

​

​

​

​

​

Tax equivalent net interest income

​

​

​

​

​

98,243

​

​

​

​

​

​

​

109,797

​

​

​

Tax equivalent interest rate spread (5)

​

​

​

​

​

​

​

1.95

%  

​

​

​

​

​

​

3.27

%

Less: tax equivalent adjustment

​

​

​

​

​

665

​

​

​

​

​

​

​

—

​

​

​

Net interest income as reported

​

​

​

​

$

97,578

​

​

​

​

​

​

$

109,797

​

​

​

Net interest-earning assets (6)

​

$

1,113,449

​

​

​

​

​

​

$

1,176,280

​

​

​

​

​

​

Net interest margin (7)

​

​

​

​

​

​

​

2.50

%  

​

​

​

​

​

​

3.39

%

Tax equivalent effect

​

​

​

​

​

​

​

0.02

​

​

​

​

​

​

​

—

​

Net interest margin on a fully tax equivalent basis

​

​

​

​

​

​

​

2.52

%  

​

​

​

​

​

​

3.39

%

Ratio of interest-earning assets to interest-bearing liabilities

​

​

127.12

%  

​

​

​

​

​

​

137.26

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Supplemental information:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total deposits, including demand deposits

​

$

4,243,081

​

$

61,014

​

​

​

$

3,792,150

​

$

7,131

​

​

​

Cost of total deposits

​

​

​

​

​

​

​

1.92

%

​

​

​

​

​

​

0.25

%

Total funding liabilities, including demand deposits

​

$

4,818,446

​

$

82,325

​

​

​

$

3,922,371

​

$

10,218

​

​

​

Cost of total funding liabilities

​

​

​

​

​

​

​

2.28

%

​

​

​

​

​

​

0.35

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1) Includes securities available for sale and securities held to maturity.

​

(2) Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis.

​

(3) Includes nonaccruing loan balances and interest received on such loans.

​

(4) Includes the basis adjustments of certain loans included in fair value hedging relationships.

​

(5) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

​

(6) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

​

(7) Net interest margin represents net interest income divided by average total interest-earning assets.

​

(8) Annualized.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

HarborOne Bancorp, Inc.

Average Balances and Yield Trend

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Average Balances - Trend - Quarters Ended

​

​

    

September 30, 2023

    

June 30, 2023

    

March 31, 2023

    

December 31, 2022

    

September 30, 2022

​

​

​

(in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest-earning assets:

​

​

​

​

​

​

​

​

                                  

​

​

                                  

​

​

​

​

Investment securities (1)

​

$

375,779

​

$

381,762

​

$

387,303

​

$

388,247

​

$

390,577

​

Other interest-earning assets

​

​

207,234

​

​

238,891

​

​

63,426

​

​

42,640

​

​

27,723

​

Loans held for sale

​

​

20,919

​

​

19,614

​

​

18,108

​

​

22,350

​

​

28,046

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial loans (2)(3)

​

​

2,980,817

​

​

2,938,292

​

​

2,901,464

​

​

2,770,667

​

​

2,522,359

​

Residential real estate loans (3)(4)

​

​

1,700,383

​

​

1,682,860

​

​

1,647,109

​

​

1,566,389

​

​

1,470,305

​

Consumer loans (3)

​

​

25,126

​

​

29,025

​

​

36,310

​

​

45,629

​

​

63,220

​

Total loans

​

​

4,706,326

​

​

4,650,177

​

​

4,584,883

​

​

4,382,685

​

​

4,055,884

​

Total interest-earning assets

​

​

5,310,258

​

​

5,290,444

​

​

5,053,720

​

​

4,835,922

​

​

4,502,230

​

Noninterest-earning assets

​

​

314,030

​

​

305,132

​

​

313,309

​

​

311,372

​

​

308,734

​

Total assets

​

$

5,624,288

​

$

5,595,576

​

$

5,367,029

​

$

5,147,294

​

$

4,810,964

​

Interest-bearing liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Savings accounts

​

$

1,360,728

​

$

1,421,622

​

$

1,459,392

​

$

1,408,493

​

$

1,293,598

​

NOW accounts

​

​

274,329

​

​

280,501

​

​

275,801

​

​

291,890

​

​

305,777

​

Money market accounts

​

​

910,694

​

​

802,373

​

​

824,694

​

​

878,609

​

​

893,452

​

Certificates of deposit

​

​

818,182

​

​

708,087

​

​

552,636

​

​

487,121

​

​

486,923

​

Brokered deposits

​

​

287,428

​

​

281,614

​

​

330,426

​

​

148,460

​

​

102,875

​

Total interest-bearing deposits

​

​

3,651,361

​

​

3,494,197

​

​

3,442,949

​

​

3,214,573

​

​

3,082,625

​

FHLB and FRB borrowings

​

​

508,001

​

​

666,345

​

​

448,096

​

​

392,508

​

​

196,036

​

Subordinated debentures

​

​

34,364

​

​

34,331

​

​

34,298

​

​

34,268

​

​

34,237

​

Total borrowings

​

​

542,365

​

​

700,676

​

​

482,394

​

​

426,776

​

​

230,273

​

Total interest-bearing liabilities

​

​

4,193,726

​

​

4,194,873

​

​

3,925,343

​

​

3,641,349

​

​

3,312,898

​

Noninterest-bearing liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest-bearing deposits

​

​

705,009

​

​

712,081

​

​

721,536

​

​

788,572

​

​

789,214

​

Other noninterest-bearing liabilities

​

​

126,742

​

​

88,363

​

​

101,820

​

​

101,621

​

​

80,304

​

Total liabilities

​

​

5,025,477

​

​

4,995,317

​

​

4,748,699

​

​

4,531,542

​

​

4,182,416

​

Total stockholders' equity

​

​

598,811

​

​

600,259

​

​

618,330

​

​

615,752

​

​

628,548

​

Total liabilities and stockholders' equity

​

$

5,624,288

​

$

5,595,576

​

$

5,367,029

​

$

5,147,294

​

$

4,810,964

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Annualized Yield Trend - Quarters Ended

​

​

    

September 30, 2023

    

June 30, 2023

    

March 31, 2023

    

December 31, 2022

    

September 30, 2022

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest-earning assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investment securities (1)

​

​

2.11

%  

​

2.14

%  

​

2.18

%  

​

2.09

%  

​

2.00

%

Other interest-earning assets

​

​

5.11

%  

​

4.93

%  

​

5.13

%  

​

3.34

%  

​

2.05

%

Loans held for sale

​

​

7.02

%  

​

6.67

%  

​

6.41

%  

​

5.93

%  

​

5.33

%

Commercial loans (2)(3)

​

​

5.38

%  

​

5.30

%  

​

5.15

%  

​

4.92

%  

​

4.45

%

Residential real estate loans (3)(4)

​

​

4.09

%  

​

3.92

%  

​

3.85

%  

​

3.64

%  

​

3.50

%

Consumer loans (3)

​

​

6.51

%  

​

5.79

%  

​

5.80

%  

​

5.50

%  

​

4.99

%

Total loans

​

​

4.92

%  

​

4.81

%  

​

4.69

%  

​

4.47

%  

​

4.11

%

Total interest-earning assets

​

​

4.74

%  

​

4.63

%  

​

4.51

%  

​

4.27

%  

​

3.93

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest-bearing liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Savings accounts

​

​

1.98

%  

​

1.74

%  

​

1.51

%  

​

1.01

%  

​

0.37

%

NOW accounts

​

​

0.11

%  

​

0.08

%  

​

0.05

%  

​

0.05

%  

​

0.05

%

Money market accounts

​

​

3.64

%  

​

3.13

%  

​

2.58

%  

​

1.50

%  

​

0.61

%

Certificates of deposit

​

​

3.50

%  

​

2.99

%  

​

1.97

%  

​

0.86

%  

​

0.64

%

Brokered deposits

​

​

3.60

%  

​

3.29

%  

​

3.08

%  

​

1.32

%  

​

0.27

%

Total interest-bearing deposits

​

​

2.72

%  

​

2.30

%  

​

1.87

%  

​

1.05

%  

​

0.45

%

FHLB and FRB borrowings

​

​

5.03

%  

​

4.88

%  

​

4.62

%  

​

3.74

%  

​

2.45

%

Subordinated debentures

​

​

7.00

%

​

6.12

%

​

6.18

%

​

6.07

%

​

6.07

%

Total borrowings

​

​

5.15

%

​

4.94

%

​

4.73

%

​

3.93

%

​

2.99

%

Total interest-bearing liabilities

​

​

3.04

%  

​

2.74

%  

​

2.23

%  

​

1.39

%  

​

0.63

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1) Includes securities available for sale and securities held to maturity.

​

(2) Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis.

​

(3) Includes nonaccruing loan balances and interest received on such loans.

​

(4) Includes the basis adjustments of certain loans included in fair value hedging relationships.

​

​

​

​

​

​

​

​

​

​

​

​

​

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

​

September 30,

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

Performance Ratios (annualized):

    

2023

​

2023

​

2023

​

2022

​

2022

​

(dollars in thousands)

​

      

                     

     

   

                     

     

   

                     

     

   

                     

     

   

                     

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Return on average assets (ROAA)

​

​

0.60

%  

​

0.54

%  

​

0.54

%  

​

0.74

%  

​

1.14

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Return on average equity (ROAE)

​

​

5.62

%  

​

4.98

%  

​

4.72

%  

​

6.22

%  

​

8.76

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total noninterest expense

​

$

31,872

​

$

31,725

​

$

31,509

​

$

34,644

​

$

34,473

​

Less: Amortization of other intangible assets

​

​

189

​

​

189

​

​

189

​

​

189

​

​

235

​

Total adjusted noninterest expense

​

$

31,683

​

$

31,536

​

$

31,320

​

$

34,455

​

$

34,238

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest and dividend income

​

$

31,080

​

$

32,100

​

$

34,398

​

$

39,189

​

$

39,332

​

Total noninterest income

​

​

11,598

​

​

12,662

​

​

8,690

​

​

9,900

​

​

14,245

​

Total revenue

​

$

42,678

​

$

44,762

​

$

43,088

​

$

49,089

​

$

53,577

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Efficiency ratio (1)

​

​

74.24

%  

​

70.45

%  

​

72.69

%  

​

70.19

%  

​

63.90

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1) This non-GAAP measure represents adjusted noninterest expense divided by total revenue

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At or for the Quarters Ended

​

​

​

September 30,

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

Asset Quality

    

2023

​

2023

​

2023

​

2022

​

2022

​

(dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

   

                     

     

   

                     

     

   

                     

     

   

                     

     

   

                     

​

Total nonperforming assets

​

$

18,795

​

$

20,234

​

$

12,300

​

$

14,840

​

$

23,367

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nonperforming assets to total assets

​

​

0.33

%  

​

0.36

%  

​

0.22

%  

​

0.28

%  

​

0.47

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for credit losses on loans to total loans

​

​

1.02

%  

​

1.02

%  

​

1.02

%  

​

0.99

%  

​

1.06

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net charge-offs (recoveries)

​

$

(18)

​

$

2,671

​

$

(11)

​

$

2,067

​

$

(799)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Annualized net charge-offs (recoveries)/average loans

​

​

—

%  

​

0.23

%  

​

—

%  

​

0.19

%  

​

(0.08)

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for credit losses on loans to nonperforming loans

​

​

257.21

%  

​

236.62

%  

​

383.50

%  

​

305.93

%  

​

191.60

%

​

​

​

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

​

September 30,

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

Capital and Share Related

    

2023

​

2023

​

2023

​

2022

​

2022

​

(dollars in thousands, except share data)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

   

                     

     

   

                     

     

   

                     

     

   

                     

     

   

                     

​

Common stock outstanding

​

​

45,915,364

​

​

46,575,478

​

​

47,063,087

​

​

48,961,452

​

​

49,202,660

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Book value per share

​

$

12.73

​

$

12.79

​

$

12.74

​

$

12.60

​

$

12.43

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Tangible common equity:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total stockholders' equity

​

$

584,634

​

$

595,532

​

$

599,794

​

$

616,976

​

$

611,370

​

Less: Goodwill

​

​

69,802

​

​

69,802

​

​

69,802

​

​

69,802

​

​

69,802

​

Less: Other intangible assets (1)

​

​

1,704

​

​

1,893

​

​

2,082

​

​

2,272

​

​

2,461

​

Tangible common equity

​

$

513,128

​

$

523,837

​

$

527,910

​

$

544,902

​

$

539,107

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Tangible book value per share (2)

​

$

11.18

​

$

11.25

​

$

11.22

​

$

11.13

​

$

10.96

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Tangible assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total assets

​

$

5,664,387

​

$

5,659,254

​

$

5,572,858

​

$

5,359,545

​

$

4,987,643

​

Less: Goodwill

​

​

69,802

​

​

69,802

​

​

69,802

​

​

69,802

​

​

69,802

​

Less: Other intangible assets

​

​

1,704

​

​

1,893

​

​

2,082

​

​

2,272

​

​

2,461

​

Tangible assets

​

$

5,592,881

​

$

5,587,559

​

$

5,500,974

​

$

5,287,471

​

$

4,915,380

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Tangible common equity / tangible assets (3)

​

​

9.17

%  

​

9.38

%  

​

9.60

%  

​

10.31

%  

​

10.97

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1) Other intangible assets are core deposit intangibles.

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

(3) This non-GAAP ratio is total stockholders' equity less goodwill and intangible assets to total assets less goodwill and intangible assets.

​

​

​

HarborOne Bancorp, Inc.

Segments Key Financial Data

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

​

​

September 30,

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

​

Statements of Net Income for HarborOne Bank Segment:

​

2023

​

2023

​

2023

​

2022

​

2022

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest and dividend income

​

$

31,468

​

$

32,490

​

$

34,562

​

$

39,258

​

$

39,373

​

​

Provision (benefit) for credit losses

​

​

(113)

​

​

3,283

​

​

1,866

​

​

2,108

​

​

668

​

​

Net interest and dividend income, after provision for credit losses

​

​

31,581

​

​

29,207

​

​

32,696

​

​

37,150

​

​

38,705

​

​

Mortgage banking income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Intersegment loss

​

​

(198)

​

​

(358)

​

​

(348)

​

​

(997)

​

​

(904)

​

​

Changes in mortgage servicing rights fair value

​

​

18

​

​

29

​

​

(136)

​

​

(263)

​

​

164

​

​

Other

​

​

188

​

​

195

​

​

201

​

​

203

​

​

218

​

​

Total mortgage banking income (loss)

​

​

8

​

​

(134)

​

​

(283)

​

​

(1,057)

​

​

(522)

​

​

Other noninterest income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Deposit account fees

​

​

5,132

​

​

5,013

​

​

4,733

​

​

5,031

​

​

4,870

​

​

Income on retirement plan annuities

​

​

146

​

​

128

​

​

119

​

​

118

​

​

119

​

​

Bank-owned life insurance income

​

​

531

​

​

511

​

​

500

​

​

501

​

​

503

​

​

Other income

​

​

694

​

​

962

​

​

590

​

​

2,129

​

​

688

​

​

Total noninterest income

​

​

6,511

​

​

6,480

​

​

5,659

​

​

6,722

​

​

5,658

​

​

Noninterest expenses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Compensation and benefits

​

​

15,238

​

​

15,067

​

​

14,764

​

​

16,531

​

​

16,455

​

​

Occupancy and equipment

​

​

3,828

​

​

3,910

​

​

4,295

​

​

4,236

​

​

4,096

​

​

Data processing

​

​

2,527

​

​

2,355

​

​

2,305

​

​

2,285

​

​

2,219

​

​

Loan expense

​

​

128

​

​

96

​

​

87

​

​

55

​

​

68

​

​

Marketing

​

​

709

​

​

787

​

​

1,063

​

​

747

​

​

728

​

​

Professional fees

​

​

914

​

​

699

​

​

996

​

​

1,027

​

​

1,258

​

​

Deposit insurance

​

​

1,004

​

​

1,176

​

​

510

​

​

385

​

​

357

​

​

Other expenses

​

​

1,924

​

​

2,103

​

​

2,170

​

​

3,478

​

​

2,526

​

​

Total noninterest expenses

​

​

26,272

​

​

26,193

​

​

26,190

​

​

28,744

​

​

27,707

​

​

Less: Amortization of other intangible assets

​

​

190

​

​

189

​

​

189

​

​

189

​

​

234

​

​

Total adjusted noninterest expense

​

​

26,082

​

​

26,004

​

​

26,001

​

​

28,555

​

​

27,473

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income before income taxes

​

​

11,820

​

​

9,494

​

​

12,165

​

​

15,128

​

​

16,656

​

​

Provision for income taxes

​

​

2,716

​

​

2,193

​

​

3,115

​

​

2,817

​

​

4,166

​

​

Net income

​

$

9,104

​

$

7,301

​

$

9,050

​

$

12,311

​

$

12,490

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Efficiency ratio (1) - QTD

​

​

68.67

%

​

66.73

%

​

64.65

%

​

62.10

%

​

61.01

%

​

Efficiency ratio (1) - YTD

​

​

66.64

%

​

65.67

%

​

64.65

%

​

64.25

%

​

65.07

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1) This non-GAAP measure represents adjusted noninterest expense divided by total revenue

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

HarborOne Bancorp, Inc.

Segments Key Financial Data

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarters Ended

​

​

​

​

September 30,

​

June 30,

​

March 31,

​

December 31,

​

September 30,

​

​

Statements of Net Income for HarborOne Mortgage Segment:

​

2023

​

2023

​

2023

​

2022

​

2022

​

​

​

​

(Dollars in thousands)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest and dividend income

​

$

199

​

$

120

​

$

327

​

$

419

​

$

437

​

​

Mortgage banking income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gain on sale of mortgage loans

​

​

2,704

​

​

3,300

​

​

2,224

​

​

2,301

​

​

3,809

​

​

Intersegment gain

​

​

249

​

​

90

​

​

454

​

​

553

​

​

698

​

​

Changes in mortgage servicing rights fair value

​

​

107

​

​

407

​

​

(1,556)

​

​

(2,368)

​

​

1,652

​

​

Other

​

​

2,082

​

​

2,117

​

​

2,015

​

​

2,122

​

​

2,235

​

​

Total mortgage banking income

​

​

5,142

​

​

5,914

​

​

3,137

​

​

2,608

​

​

8,394

​

​

Other noninterest income (loss)

​

​

(4)

​

​

—

​

​

—

​

​

126

​

​

(13)

​

​

Total noninterest income

​

​

5,138

​

​

5,914

​

​

3,137

​

​

2,734

​

​

8,381

​

​

Noninterest expenses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Compensation and benefits

​

​

4,014

​

​

3,700

​

​

3,575

​

​

3,825

​

​

4,788

​

​

Occupancy and equipment

​

​

567

​

​

688

​

​

701

​

​

663

​

​

691

​

​

Data processing

​

​

21

​

​

48

​

​

41

​

​

74

​

​

92

​

​

Loan expense

​

​

258

​

​

321

​

​

226

​

​

114

​

​

287

​

​

Marketing

​

​

85

​

​

138

​

​

118

​

​

115

​

​

122

​

​

Professional fees

​

​

155

​

​

180

​

​

257

​

​

115

​

​

108

​

​

Other expenses

​

​

390

​

​

418

​

​

404

​

​

546

​

​

522

​

​

Total noninterest expenses

​

​

5,490

​

​

5,493

​

​

5,322

​

​

5,452

​

​

6,610

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) before income taxes

​

​

(153)

​

​

541

​

​

(1,858)

​

​

(2,299)

​

​

2,208

​

​

Income tax provision (benefit)

​

​

(15)

​

​

232

​

​

(565)

​

​

—

​

​

687

​

​

Net income

​

$

(138)

​

$

309

​

$

(1,293)

​

$

(2,299)

​

$

1,521

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Efficiency ratio (1) - QTD

​

​

102.87

%

​

91.03

%

​

153.64

%

​

172.91

%

​

74.96

%

​

Efficiency ratio (1) - YTD

​

​

109.91

%

​

113.87

%

​

153.64

%

​

77.92

%

​

68.42

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1) This non-GAAP measure represents noninterest expense divided by total revenue

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Exhibit 99.2

GRAPHIC

Investor Presentation October 2023

GRAPHIC

2 Q3 2023 Investor Presentation 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. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. 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, changes in general business and economic conditions (including inflation and concerns about inflation) on a national basis and 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 customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; acquisitions may not produce results at levels or within time frames originally anticipated; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and future pandemics; changes in 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 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’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.

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3 Q3 2023 Investor Presentation COMPANY HIGHLIGHTS Exchange/Ticker: NASDAQ/HONE Total Assets: $5.7 Billion Total Loans: $4.7 Billion Total Deposits: $4.4 Billion Market Capitalization: $437.1 Million (as of 9/30/23) ▪ HarborOne Bancorp, Inc. is a bank holding company and the parent of HarborOne Bank, a state-chartered trust company. ▪ HarborOne Bank is headquartered in Brockton, MA with 30 full-service branches throughout Metro Boston, Southeast Massachusetts and Rhode Island and a commercial lending office in Boston and Providence. ▪ HarborOne Bank is a recognized leader in financial and personal enrichment education and innovation through HarborOneU. ▪ HarborOne Mortgage, LLC (“HarborOne Mortgage”) is a wholly owned subsidiary of HarborOne Bank with 19 offices in Maine, Massachusetts, New Hampshire, New Jersey, Florida and Rhode Island and licensed to lend in 5 additional states. A Unique New England Banking Franchise

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2023 Investor Report 4 Q3 2023 Investor Presentation ▪ Diluted EPS of $0.20, ROA of 0.60%, and ROE of 5.62%. ▪ Asset quality remains solid with coverage ratio flat QOQ at 1.02% ▪ Core deposit growth of $44.2 million, or 1.04% ▪ During the quarter, the Company commenced the sixth stock buyback program for 5% of shares outstanding. ▪ Margin declined from 2.45% in Q2 2023 to 2.34% in Q3 2023. ▪ Noninterest expense down 7.5% Q3 2023 vs Q3 2022. Q3 2023 Highlights Net Income $8.4 Million Diluted Earnings Per Share $0.20 Loan Growth $ 24.7 Million Deposit Growth $ 122.5 Million Tangible Book Value $11.18

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5 Q3 2023 Investor Presentation $4.1 B $4.5 B $4.6 B $5.4 B $5.7 B 2019 2020 2021 2022 Q3 '23 15.3% 14.5% 13.6% 11.5% 10.2% 2019 2020 2021 2022 Q3 '23 $3.0 B $3.5 B $3.6 B $4.6 B $4.7 B 2019 2020 2021 2022 Q3 '23 $10.10 $10.88 $11.57 $11.13 $11.18 2019 2020 2021 2022 Q3 '23 Key Performance Metrics Total Assets Total Loans Tier 1 Capital Tangible Book Value

GRAPHIC

6 Q3 2023 Investor Presentation Key Performance Metrics (Cont.) EPS Net Income Net Interest Margin on FTE Basis Net Interest Income $0.33 $0.82 $1.14 $0.97 $0.53 2019 2020 2021 2022 YTD '23 $18.3 M $44.8 M $58.5 M $45.6 M $23.2 M 2019 2020 2021 2022 YTD '23 3.14% 3.06% 3.12% 3.35% 2.52% 2019 2020 2021 2022 YTD '23 $109.1 M $120.1 M $131.4 M $149.0 M $97.6 M 2019 2020 2021 2022 YTD '23

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7 Q3 2023 Investor Presentation Capital Management ▪ The Company remains well capitalized and is able to weather economic volatility. ▪ Continued annual dividend growth with 7% increase in Q1 2023. ▪ Sixth buyback program announced to purchase 2.3 million shares, 14.2 million shares purchased since 2020. ▪ Strong Tangible Capital Ratio of 9.17% with minimal securities categorized as Held to Maturity. ▪ Strong primary and secondary liquidity. 10.5% 8.5% 7.0% 4.0% 13.7% 12.0% 12.0% 10.2% 9.2% Total Capital Tier 1 Capital Tier 1 Common Equity Tier 1 Leverage Tangible Common Equity Minimum Capital Required plus Capital Conservation Buffer HONE Capital Ratios * * All information is as of 9/30/23 unless otherwise noted.

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8 Q3 2023 Investor Presentation FHLB $830,785 Fed Funds $208,211 Wholesale Deposits $115,987 Unencumbered securities $6,989 FRB Discount Window, $68,009 FRB BTFP $360,989 Correspondent Banks, $25,000 Liquidity Management Available Funding Sources: $1.4 Billion ▪ Management’s actions to preserve liquidity and Capital: o Cash flow from investment portfolio used to fund loans/reduce borrowings. o Disciplined loan growth. o Established FRB BTFP borrowing line.

GRAPHIC

9 Q3 2023 Investor Presentation Securities Portfolio Total Securities At Par Value Held to Maturity $19,795 5% Available for Sale $352,328 95% ▪ Securities Portfolio is 5.1% of total assets. ▪ Effective duration of the portfolio is 6.4 years. ▪ Total unrealized loss on the Held to Maturity portfolio is $1.1 million with minimal impact to capital ratios.

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10 Q3 2023 Investor Presentation CRE 50% Residential 1-4 Family 32% C&I 10% Construction 4% HELOC & Sec. Mtg. 4% Consumer 0% Loan Portfolio $4.7 Billion

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11 Q3 2023 Investor Presentation Commercial Lending $1.6 B $2.1 B $2.3 B $2.9 B $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2019 2020 2021 2022 Q3 '23 Construction Commercial Commercial Real Estate Total Commercial Loans ▪ Commercial loans grew from $1.6 billion in 2019 to $3.0 billion on September 30, 2023, transforming the balance sheet while maintaining strong credit quality. ▪ #3 in volume U.S. Small Business Administration (SBA) Lender in Rhode Island in 2022. ▪ Continued investment in people and technology to promote C&I and Small Business growth within Boston and Providence metro. ▪ 2023 growth focused on high-quality, deep-relationship lending within footprint. $3.0 B

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12 Q3 2023 Investor Presentation Flex / Industrial 21% Apartments 16% Retail 13% Hotels 13% Office 9% Health Care 8% All Other Property Types 20% Commercial Real Estate Portfolio $2.35 Billion LTV: 59% LTV: 62% LTV: 59% LTV: 60% LTV: 64% LTV: 65% LTV: 63% New England Focused By Metropolitan Statistical Area MSA 09/30/23 Boston-Cambridge-Quincy, MA $1.2 Bn Providence-New Bedford-Fall River, RI-MA $0.4 Bn Barnstable - Islands, MA $0.2 Bn Manchester-Nashua, NH $0.1 Bn Bridgeport-Stamford-Norwalk, CT $0.1 Bn Other $0.3 Bn Total $2.4 Bn Key Portfolio Metrics Conservative Underwriting Methodology Metric 09/30/23 2024 Maturities / Total CRE Loans 5.7% Loan to Value – Origination 61.7% Reserves / Total NOO CRE Loans 0.9% 30+ CRE Delinquency % 0.3% Criticized Loans / Total CRE Loans 2.3% NPL / Total CRE Loans 0.4% Office - Central Business District / Total CRE Loans 0.5% Diversified Portfolio by Industry Type

GRAPHIC

13 Q3 2023 Investor Presentation Commercial Real Estate Portfolio Segmentation Industry Non Anchored Anchored Total Portfolio Commentary Retail $40MM $268MM $308MM Low % of Non Anchored Retail. Strong occupancy rate at 92%. Industry Metro Suburban Total Portfolio Commentary Office $12MM $212MM $224MM Low % of Central Business District. Resilient occupancy rate at 91%. Industry Business Focused Leisure Focused Total Portfolio Commentary Hotels $114MM $191MM $306MM Focus on destination boutique leisure with well known sponsors. Industry CoStar Rating 4 CoStar Rating 3 Total Portfolio Commentary Apartments 49% 31% $367MM Focus on high quality properties. Strong occupancy rate at 95%.

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14 Q3 2023 Investor Presentation Construction and Commercial & Industrial Portfolio Apartments 39% Flex/Industrial 26% Retail 6% Land Dev. Residential 7% Office 6% Warehouse 11% All Other 5% Health Care 24% Alt. Energy 21% Manufacturing 14% Retail 9% Wholesale Trade 7% RE Leasing 6% Construction 5% Restaurant 5% Education 5% Prof. Svcs 4% Construction: $191 Million Commercial & Industrial: $451 Million ▪ Preference for known sponsors with existing relationships ▪ Diversified portfolio with focus on local relationships ▪ Specialization in Healthcare and Alternative Energy

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15 Q3 2023 Investor Presentation Residential 88% HELOC 10% Consumer 1% Construction 1% Residential and Consumer Lending Portfolio $1.7 Billion Key Portfolio Metrics: Residential Conservative Underwriting Methodology Metric 09/30/23 Weighted Average FICO (as of 1/2023) 767 Weighted Average LTV (Origination) 67% Second Home and Investment % 13% Cash-out Refinanced %1 3.5% 30+ Delinquency % 0.2% Key Portfolio Metrics: HELOC Conservative Underwriting Methodology Metric 09/30/23 Weighted Average FICO (as of 1/2023) 769 Weighted Average CLTV 60% Utilization 40% Second Home and Investment % 3.0% 30+ Delinquency % 0.4% 1 Cash-out Refinanced % represents population of loans booked since March 15, 2021

GRAPHIC

16 Q3 2023 Investor Presentation Credit Quality Nonperforming Loans to Total Assets ($MM) Net Charge-Offs to Average Loans $30.3 $34.1 $36.1 $14.8 $18.8 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 2019 2020 2021 2022 Q3 '23 Residential Commercial Consumer 0.04% 0.10% 0.08% 0.09% 0.08% 2019 2020 2021 2022 YTD '23

GRAPHIC

17 Q3 2023 Investor Presentation Allowance for Credit Losses (ACL) $47.82 $48.31 +$0.37 +$0.12 $40.0 $42.0 $44.0 $46.0 $48.0 $50.0 June 30, 2023 Change in Pooled Loans Change in Individually Analyzed Loans September 30, 2023 $ Millions ▪ Forecasted unemployment rate assumes a 4.0% rate at the end of 2023, increasing to 4.8% by end of 2024. ▪ Q3 2023 ACL rate of 1.02% of total loans flat from Q2 2023.

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18 Q3 2023 Investor Presentation Savings 30% DDA/NOW 23% CD 26% Money Market 21% Relationship Banking Deposit Mix ▪ DIF provides excess insurance coverage until February 24, 2024 for certain funds on deposit as of February 24, 2023. ▪ Long Tenured Relationships: o 75% of balances > 5+ year tenure o 63% of balances > 10+ year tenure o 52% of balances > 15+ year tenure ▪ YOY Key Relationship Metrics: o Consumer HH with primary checking have remained stable o The number of business checking accounts increased 6% ▪ Shift to Self-Service / Payments: o 72% usage with 5.2% increase YOY o 83% of Consumer HH are digitally engaged o 94% of Consumers are active debit card users ▪ Banking Centers Optimization: o Brockton changes: one branch closed July 2023; 3 Banking Centers remain, one remodeled for relationship banking, and ATM added at former branch location.

GRAPHIC

19 Q3 2023 Investor Presentation Deposits Average Quarterly Cost of Deposits 0.18% 0.21% 0.36% 0.84% 1.55% 1.91% 2.28% Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 ▪ In Q3, total deposits increased $122.5 million with growth of CD’s and money market accounts offset by a decline in checking, savings and brokered. Cost of deposits increased 37 basis points to 2.28% for the three months ended September 30, 2023. ▪ HarborOne grew deposit market share in 17 towns YOY; Brockton market share increased 4.6%, despite a reduction in Banking Centers from 4 to 3. ▪ Increased deposits 81% YOY in competitive Boston market branches ▪ Business accounts represent 19% of total deposits with cost of 184 basis points. Q3 core business accounts increased $31 million or 4.3%. ▪ Since the Federal Reserve has started the tightening cycle, Fed funds has increased 525 basis points. In that seven-quarter timeframe, the Bank’s cost of deposits increased 250 basis points. ▪ September 2023 Cost of Deposits was 2.38%

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20 Q3 2023 Investor Presentation Mortgage Banking ($ in 000’s) Q3 2023 Q2 2023 Q3 2022 Gain on Sale $2,704 $3,330 $3,809 MSR Fair Value & Amortization $107 $407 $1,652 Servicing Revenue / Other $2,438 $2,327 $2,920 Total Revenue $5,337 $6,034 $8,818 Expenses $5,490 $5,493 $6,610 Net Income $(138) $309 $1,521 Key Drivers/Statistics $ Disbursements $158 MM $172 MM $250 MM Sales Margin 2.16% 2.21% 1.99% FTE’s 137 144 196 Offices 19 25 26 MSR Balance $45.7 MM $44.7 MM $46.0 MM Change in MSR Fair Value $641 K $787 K $2.3 MM 10 year Treasury 4.59% 3.81% 3.83% ▪ Mortgage banking segment continues to be negatively impacted by market conditions and New England seasonality. ▪ Flexible operating model includes expense-disciplined management team. FTE’s have been reduced by 59 YOY. ▪ Net loss of $138K, MSR valuation down despite rate increases, due to valuation multiple caps. ▪ Disbursements down 8% from Q2 and down 37% from Q3 2022. ▪ Expenses of $5.5 million, down $1.1 million or 17% YOY, driven by reduction of commissions, closing of 7 offices, and reduction in force in Q1 and Q3. ▪ Q3 Production volume, 92% purchase, 8% refinance.

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21 Q3 2023 Investor Presentation Bank Stand-Alone ▪ Net Income of $9.1 MM, down 27.1% YOY ▪ Net Interest Income of $31.5MM down 20.1% YOY. ▪ Q3 reversal of provision was $113K. ▪ Noninterest income up $853K YOY on swap fee, deposit fees and interchange income. ▪ Noninterest Expenses down $1.4 million YOY on lower salaries and benefits. ▪ FTE’s are down 13 QOQ, 27 YOY. The Bank had a reduction in force in Q2 and evaluates open positions for attrition. ($ in 000’s) Q3 2023 Q2 2023 Q3 2022 Interest Income $62,951 $60,665 $44,116 Interest Expense 31,483 28,175 4,743 Net Interest Income 31,468 32,490 39,373 Provision -113 3,283 668 Non Interest Income 6,511 6,480 5,658 Non Interest Expense 26,272 26,193 27,707 Net Income $9,104 $7,301 $12,490 Key Drivers/Statistics ROAA 0.65% 0.52% 1.04% Efficiency Ratio 68.7% 66.7% 60.0% Margin 2.36% 2.47% 3.49% FTE’s 392 405 419 Nonaccrual Loans $ 18.8MM $20.2 MM $23.3 MM Net charge-off(recovery) rate -% 0.23% (0.08)% ACL/Loans 1.02% 1.02% 1.06%

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22 Q3 2023 Investor Presentation Why HarborOne Clear Strategic Focus ▪ Drive organic growth with a focus on Customer Primacy. ▪ Ensure diverse and low cost funding base with significant available liquidity. ▪ Foster customer-centric mission that earns total long-term banking relationships. ▪ Continued rationalization and modernization of Banking Centers. Unique Franchise and Culture ▪ Attractive New England (metro Boston & Providence) footprint. ▪ Focus on retaining and attracting top talent in the communities we serve. ▪ Deep community engagement - 2023 Boston Business Journal Most Charitable Companies list (7th consecutive year). Proven Track Record ▪ Seasoned management team and Board. ▪ Excess capital to manage economic headwinds. ▪ Increasing quarterly dividend with continued stock buybacks. ▪ Prudent cost management with commitment to continuous process enhancement.

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23 Q3 2023 Investor Presentation HarborOne U - “Enriching lives through education” Original content, tools, templates, case studies, and calculators to help small businesses achieve financial success. A personalized education platform that helps individuals and families gain skills and build confidence in their financial choices. Consumer Small Business

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24 Q3 2023 Investor Presentation A Commitment to Doing What’s Right Mission Statement We provide a personalized experience while caring about every customer. We focus on understanding their financial goals for today and dreams for tomorrow. We are unwavering in our commitment to the communities that we serve. Vision Statement To be our customers’ most trusted financial partner. Our Values Integrity. Teamwork. Trust. Respect. Accountability.

v3.23.3
Document and Entity Information
Oct. 24, 2023
Document and Entity Information [Abstract]  
Document Type 8-K
Document Period End Date Oct. 24, 2023
Entity Registrant Name HarborOne Bancorp, Inc.
Entity Incorporation, State or Country Code MA
Securities Act File Number 001-38955
Entity Tax Identification Number 81-1607465
Entity Address, Address Line One 770 Oak Street
Entity Address, City or Town Brockton
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02301
City Area Code 508
Local Phone Number 895-1000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol HONE
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001769617
Amendment Flag false
v3.23.3
N-2
Oct. 24, 2023
Cover [Abstract]  
Entity Central Index Key 0001769617
Amendment Flag false
Securities Act File Number 001-38955
Document Type 8-K
Entity Registrant Name HarborOne Bancorp, Inc.
Entity Address, Address Line One 770 Oak Street
Entity Address, City or Town Brockton
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02301
City Area Code 508
Local Phone Number 895-1000
Entity Emerging Growth Company false
HarborOne Bancorp (NASDAQ:HONE)
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