HarborOne Bancorp, Inc. Announces 2020 Fourth Quarter Earnings

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HarborOne Bancorp, Inc. (the "Company" or "HarborOne") (NASDAQ: HONE), the holding company for HarborOne Bank (the "Bank"), announced net income of $17.6 million, or $0.33 per basic and diluted share, for the fourth quarter of 2020, compared to $11.9 million, or $0.22 per basic and diluted share, for the preceding quarter and $4.3 million, or $0.08 per basic and diluted share, for the same period last year. For the year ended December 31, 2020, net income was $44.8 million, or $0.82 per basic and diluted share, compared to $18.3 million, or $0.33 per basic and diluted share, for the year ended December 31, 2019. The quarter and year ended December 31, 2020 reflect charges of $1.7 million and $19.6 million, respectively, to the provision for loan losses and $47,000 and $1.8 million, respectively, to non-interest expense related to the COVID-19 pandemic.

Selected Fourth Quarter Financial Highlights:

  • Record EPS with net income of $17.6 million

  • Allowance for loan loss at 1.59% of loans and 1.64% of loans, excluding Paycheck Protection Program loans

  • Mortgage banking income grew to $31.9 million, or 145.6% as compared to the fourth quarter 2019

  • Net interest margin expanded 13 basis points to 3.22%

  • Return on average assets was 1.61% and return on average equity was 10.13%

  • Continued commercial loan growth providing expanded commercial deposit growth

  • Deposit growth of $140.3 million, or 4.2%, with improved cost of funds and favorable mix

"Were pleased that the momentum we had in Q3 continued into Q4. Its a testament to the tremendous teamwork and commitment to our customers during a very challenging time," said James Blake, CEO. "While the pandemic presented both personal and professional challenges for most of us, it forced us to rethink many aspects of our business. As a result we will be a better company moving forward," added Joseph Casey, President and COO. "Were very focused on continuing to deliver a tremendous customer experience."

Net Interest Income

The Companys net interest and dividend income was $32.8 million for the quarter ended December 31, 2020, up $1.6 million, or 5.1%, from $31.2 million for the quarter ended September 30, 2020 and up $4.5 million, or 15.6%, from $28.3 million for the quarter ended December 31, 2019. The tax equivalent interest rate spread and net interest margin were 3.03% and 3.22%, respectively, for the quarter ended December 31, 2020, compared to 2.87% and 3.09%, respectively, for the quarter ended September 30, 2020, and 2.70% and 3.08%, respectively, for the quarter ended December 31, 2019. The improvement in net interest margin was largely driven by the decrease in deposit rates. The recognition of origination fees on U.S. Small Business Administration Paycheck Protection Program loans contributed to improved margins in the fourth quarter of 2020. It is expected that interest rates will remain low and that the economic environment will continue to be volatile as the impact of the COVID-19 pandemic is realized.

The components of the quarter over quarter increase in net interest and dividend income reflected an increase of $673,000, or 1.8%, in total interest and dividend income and a decrease of $909,000, or 15.5%, in total interest expense. The increase in total interest and dividend income primarily reflected an increase of $29.4 million in average earning assets and a 4 basis point increase in the yield. The yield on loans was 4.00% for the quarter ended December 31, 2020, up from 3.94% for the quarter ended September 30, 2020. The three months ended December 31, 2020 and September 30, 2020 include the recognition of deferred fees on Paycheck Protection Program loans in the amount of $1.3 million and $653,000, respectively. Interest on loans in the fourth quarter included $1.4 million in accretion income from the fair value discount on loans acquired from Coastway Bancorp, Inc. ("Coastway") and $244,000 in prepayment penalties on commercial loans. Accretion income and prepayment penalties in the preceding quarter were $1.6 million and $140,000, respectively.

The decrease in total interest expense primarily reflected a decrease in interest rates, resulting in an 11 basis point decrease in the cost of interest-bearing deposits. The mix of deposits continues to shift as customers move to more liquid options. The average balance of certificates of deposit accounts decreased quarter over quarter by $34.1 million, while the savings account average balance increased $71.0 million from the preceding quarter. Average FHLB advances decreased $30.0 million as the need for short-term borrowed funds diminished, and the cost of borrowed funds remained flat, resulting in a decrease of $164,000 in interest expense on FHLB borrowings.

The increase in net interest and dividend income from the prior year quarter reflected a decrease of $6.4 million, or 56.4%, in total interest expense, partially offset by a $2.0 million, or 5.0%, decrease in total interest and dividend income. The decreases reflect offsetting rate and volume changes in both interest-bearing assets and liabilities. The cost of interest-bearing liabilities decreased 94 basis points while the average balance increased $140.0 million. The yield on interest-earning assets decreased 61 basis points while the average balance increased $396.1 million.

Noninterest Income

Total noninterest income decreased $7.3 million, or 16.4%, to $37.2 million for the quarter ended December 31, 2020, from $44.5 million for the quarter ended September 30, 2020. Record-breaking mortgage demand spurred by low mortgage rates continued to provide higher than usual mortgage origination activity and other mortgage banking income for HarborOne Mortgage, LLC. The $813.2 million in mortgage loan closings resulted in a gain on loan sales of $28.3 million for the quarter ended December 31, 2020, as compared to $34.1 million for the preceding quarter. Other mortgage banking income increased $395,000. Residential mortgage loan payoffs resulted in accelerated amortization of mortgage servicing rights in the amount of $1.4 million and $1.1 million for the three months ended December 31, 2020 and September 30, 2020, respectively. The 10-year Treasury Constant Maturity rate increased 24 basis points in the fourth quarter of 2020, resulting in a $366,000 increase in fair value of mortgage servicing rights. The fair value of the mortgage servicing rights decreased $2.6 million for the year ended December 31, 2020. The low interest rate environment spurred increased purchase and refinance activity during the year, continuing into the first quarter of 2021 with a locked residential mortgage pipeline at December 31, 2020 of $485.4 million; however, seasonality, economic uncertainty and increased unemployment rates may have a negative impact on mortgage loan originations in the future.

Total noninterest income increased $19.0 million, or 105.0%, as compared to the quarter ended December 31, 2019, primarily due to an $18.9 million, or 145.6%, increase in mortgage banking income primarily driven by volume. The 2019 quarterly results also include a write down to fair value of the former Coastway corporate office in Warwick, Rhode Island, which was sold during 2020.

Noninterest Expense

Total noninterest expenses were $41.4 million for the quarter ended December 31, 2020, a decrease of $4.3 million, or 9.4%, from the quarter ended September 30, 2020, primarily driven by a $2.7 million decrease in compensation and benefits, a $926,000 decrease in other expenses, a $346,000 decrease in loan expense, and a $206,000 decrease in professional fees. The decrease in compensation and benefits reflects timing of accruals for incentive programs and severance payments paid in the third quarter of 2020 as a result of the staff realignment. The decrease in other expenses reflects a $196,000 decrease in foreclosed asset expense and a $123,000 decrease in amortization of core deposit intangibles. Other expenses for the three months ended September 30, 2020 also included a write off of $217,000 for fixed assets. For the three months ended December 31, 2020, pandemic expenses, which are also included in other expenses, amounted to $47,000 compared to $71,000 in the preceding quarter. Due to the uncertain nature of the COVID-19 pandemic, we may continue to have additional expenses for personnel, cleaning, and other initiatives to support our employees and customers.

Total noninterest expenses increased $2.7 million, or 7.0%, from the quarter ended December 31, 2019. Compensation and benefits increased $3.4 million and loan expenses increased $950,000, partially offset by a $1.2 million decrease in professional fees and a $777,000 decrease in other expenses. The increase in compensation and benefits and loan expenses primarily reflected the increased volume of residential real estate mortgage originations. The decrease in professional fees reflects $712,000 in consulting fees recorded in the fourth quarter of 2019 for the review of filings effected by the Home Mortgage Disclosure Act and no such expense in 2020. The decrease in other expenses reflects a decrease in the Board of Directors equity award expense of $361,000, as original grants were fully vested in the third quarter of 2020.

Income Tax Provision

The effective tax rate was 15.7% for the quarter ended December 31, 2020, compared to 27.7% for the quarter ended September 30, 2020 and 33.6% for the quarter ended December 31, 2019. The effective tax rate for the quarter ended December 31, 2020 was impacted by a 2016 federal tax refund of $1.9 million recognized on the expiration of the statute of limitations.

Provision for Loan Losses and Asset Quality

The Company recorded a provision for loan losses of $7.6 million for the quarter ended December 31, 2020, compared to $13.5 million for the quarter ended September 30, 2020 and $1.3 million for the quarter ended December 31, 2019. The allowance for loan losses was $55.4 million, or 1.59%, of total loans at December 31, 2020, compared to $49.2 million, or 1.40%, of total loans at September 30, 2020 and $24.1 million, or 0.76%, of total loans at December 31, 2019. Changes in the provision for loan losses are based on managements assessment of loan portfolio growth and composition changes, historical charge off trends, and ongoing evaluation of credit quality and current economic conditions.

The provision for loan losses for the quarter ended December 31, 2020 included adjustments for our quarterly analysis of our historical and peer loss experience rates, commercial real estate loan growth, and a $1.7 million provision directly related to the estimate of inherent losses resulting from the impact of the COVID-19 pandemic. The current period allowance for loan losses reflects an additional provision expense and charge-off in the amount of $937,000 related to two non-performing commercial loans that were transferred out of portfolio and subsequently sold during the quarter ended December 31, 2020. The provision for loan losses for the quarter ended September 30, 2020 included adjustments for our quarterly analysis of our historical and peer loss experience rates, commercial real estate loan growth, and a $10.7 million provision directly related to the estimate of inherent losses resulting from the impact of the COVID-19 pandemic. The provision for loan losses for the quarter ended December 31, 2019 primarily reflected commercial real estate loan growth and overall credit quality indicators.

In estimating the provision for the COVID-19 pandemic, management considered economic factors, including unemployment rates and the interest rate environment, the volume and dollar amount of requests for payment deferrals, the loan risk profile of each loan type, and whether the loans were purchased. An additional 10 basis points of provisions were provided to the commercial loan categories for the three months ended December 31, 2020, amounting to $1.7 million. No additional provisions specific to COVID-19 were provided for the residential real estate or consumer loan portfolios in the fourth quarter.

Management continues to evaluate our loan portfolio, particularly the commercial loan portfolio, in light of the expected decrease in economic activity, the mitigating effects of government stimulus, and loan modification efforts designed to limit the long term impacts of the COVID-19 pandemic. Our commercial loan portfolio is diversified across many sectors and is largely secured by commercial real estate loans, which make up 73.3% of the total commercial loan portfolio. Initial assessments of the impact of the COVID-19 pandemic on the commercial loan portfolio have been focused on sectors that have experienced a direct impact. Management has identified six sectors as the most susceptible to immediate increased credit risk: retail, office space, hotels, health and social services, restaurants, and recreation. The total loan portfolio of the six commercial sectors identified as at risk totaled $948.5 million, which represents 44.8% of the commercial loan portfolio. The at-risk sectors include $735.7 million in commercial real estate loans, $184.7 million in commercial and industrial loans, and $28.2 million in commercial construction loans.

As of December 31, 2020, the retail sector was $261.8 million, or 12.4% of total commercial loans, and included $219.8 million in commercial real estate loans, $28.6 million in commercial and industrial loans, and $13.4 million in commercial construction loans. U.S. Small Business Administration Paycheck Protection Program loans included in this sector totaled $4.5 million. We have provided deferrals for loans in this sector with outstanding principal balances of $46.7 million. We originated $4.5 million loans during the fourth quarter that are within the retail sector. The new loans are supported by leases to credit-related tenants such as pharmacy and grocery stores, which have been essential businesses during the pandemic.

As of December 31, 2020, the office space sector was $210.3 million, or 9.9% of total commercial loans, and included $193.1 million in commercial real estate loans, $16.3 million in commercial and industrial loans, and $854,000 in commercial construction loans. We provided deferrals for loans in the sector with outstanding principal balances of $13.4 million. No Paycheck Protection Program loans were originated in this sector. We originated $2.0 million loans during the fourth quarter that are within the office space sector.

As of December 31, 2020, the hotel sector was $201.0 million, or 9.5% of total commercial loans, and included $190.3 million in commercial real estate loans, $2.6 million in commercial and industrial loans, and $8.0 million in commercial construction loans. Paycheck Protection Program loans included in the sector totaled $444,000. We have provided deferrals for loans in this sector with outstanding principal balances of $120.4 million, $93.8 million that have expired deferral periods and are paying as agreed, and $254,000 that have expired deferral periods and are greater than 30 days delinquent. In addition, we have provided other relief for loans in this sector with outstanding principal balances of $81,000. At December 31, 2020, nonperforming loans included in the hotel sector amount to $12.2 million. The increase from the third quarter reflects one loan that amounted to $9.0 million that is on nonaccrual and is considered impaired. This loans deferral period expires in the second quarter of 2021, however it was determined in the fourth quarter that weaknesses in the credit warranted a downgrade to substandard and nonaccrual status. A specific reserve of $1.8 million has been allocated to this loan. We originated $6.1 million loans during the fourth quarter that are within the hotel sector.

The health and social services sector amounted to $199.3 million, or 9.4% of total commercial loans, as of December 31, 2020 and included $107.5 million in commercial real estate loans, $90.7 million in commercial and industrial loans, and $1.0 million in commercial construction loans. Paycheck Protection Program loans included in the sector totaled $36.2 million, and we have provided deferrals for loans in this sector with outstanding principal balances of $12.6 million. We originated $14.3 million loans during the fourth quarter that are within this sector. The loans originated in the fourth quarter were generally owner occupied commercial real estate supported by stable and diverse medical practices.

As of December 31, 2020, the restaurant sector amounted to $55.0 million, or 2.6% of total commercial loans, including $7.3 million in Paycheck Protection Program loans. We provided deferrals for loans in this sector with outstanding principal balances of $13.5 million. The recreation sector amounted to $21.3 million, or 1.0% of total commercial loans, including $1.8 million in Paycheck Protection Program loans. We provided deferrals for loans in this sector with outstanding principal balances of $15.7 million. During the fourth quarter two non-performing loans that were included in the recreation sector in previous quarters, with a recorded investment of $10.9 million, were sold and a charge off of $937,000 was recorded.

We provided access to the Paycheck Protection Program to both our existing customers and new customers, to ensure small businesses in our communities have access to this important lifeline for their businesses. As of December 31, 2020, Paycheck Protection Program loans amounted to $126.5 million. As of December 31, 2020, there was $2.7 million in deferred processing fee income that will be recognized over the life of the loans.

We are also working with commercial loan customers that may need payment deferrals or other accommodations to keep their loans out of default through the COVID-19 pandemic. As of December 31, 2020, we have provided 171 payment deferrals on commercial loans with a total principal balance of $295.3 million, or 14.0%, of total commercial loans, of which $222.2 million are loans included in an at risk sector. As of December 31, 2020, 90.8% of the commercial deferrals have expired and the borrower is making payments as agreed, 0.09% of the commercial deferrals have expired and the borrower is delinquent, and 9.1% are in active deferral period. The active commercial deferrals expire during 2021. We have also provided $4.6 million loans with other accommodations. We continue to consider requests for additional deferrals or new deferrals at December 31, 2020 for commercial credits.

The residential loan and consumer loan portfolios have not experienced significant credit quality deterioration as of December 31, 2020; however, the continuing impact and uncertain nature of the COVID-19 pandemic may result in increases in delinquencies, charge offs and loan modifications in these portfolios through the remainder of 2021. As of December 31, 2020, we had provided 172 payment deferrals on residential mortgage loans with a total principal balance of $51.9 million, or 4.7% of total residential loans, of which 86.1% of the deferrals have expired and are paying as agreed and 5.4% are in active deferral periods. We had 495 payment deferrals on consumer loans with a total principal balance of $11.6 million, or 4.2%, of total consumer loans, of which 93.5% of the deferrals have expired and are paying as agreed. Requests for additional extensions on residential mortgage loans and consumer loans were not significant as of December 31, 2020.

Net charge offs totaled $1.4 million for the quarter ended December 31, 2020, or 0.16% of average loans outstanding on an annualized basis, compared to $338,000, or 0.04% of average loans outstanding on an annualized basis, for the quarter ended September 30, 2020 and $235,000, or 0.03% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2019. Net charge offs for the quarter ended December 31, 2020 include a charge off in the amount of $937,000 recorded on the sale of two nonperforming commercial loans.

Total nonperforming assets were $34.7 million at December 31, 2020, compared to $41.0 million at September 30, 2020 and $31.0 million at December 31, 2019. Nonperforming assets as a percentage of total assets were 0.77% at December 31, 2020, 0.93% at September 30, 2020, and 0.76% at December 31, 2019. The decrease from the preceding quarter is primarily due to the two commercial loans noted above that were sold and amounted to $10.9 million.

Balance Sheet

Total assets increased $55.3 million, or 1.2%, to $4.48 billion at December 31, 2020 from $4.43 billion at September 30, 2020. The increase primarily reflects an increase of $65.8 million in short-term investments and an $18.2 million increase in loans held for sale, partially offset by a $27.4 million decrease in net loans.

Net loans decreased $27.4 million, or 0.08%, to $3.44 billion at December 31, 2020 from $3.47 billion at September 30, 2020. The net decrease in loans for the three months ended December 31, 2020 was primarily due to decreases in commercial construction loans of $112.6 million, commercial and industrial loans of $15.7 million, consumer loans of $38.9 million and residential real estate loans of $25.1 million, partially offset by an increase in commercial real estate loans of $171.2 million. The changes in commercial real estate loans and commercial construction loans reflect $79.2 million of commercial construction loans that converted to commercial real estate loans at the end of the construction phase. Additionally, two non-performing commercial construction loans with a net book value of $10.9 million were sold at a loss of $937,000. The allowance for loan losses increased $6.2 million, or 12.5% to $55.4 million at December 31, 2020 from $49.2 million at September 30, 2020 as provisions continue to be made in response to portfolio risks as a result of COVID-19 pandemic.

Total deposits increased $140.3 million, or 4.2%, to $3.51 billion at December 31, 2020 from $3.37 billion at September 30, 2020. Compared to the prior quarter, non-certificate accounts increased $193.9 million and term certificate accounts decreased $53.6 million. FHLB borrowings decreased $87.0 million, or 36.9%, to $149.1 million at December 31, 2020 from $236.1 million at September 30, 2020.

Total stockholders equity was $696.3 million at December 31, 2020, compared to $694.1 million at September 30, 2020 and $665.8 million at December 31, 2019. The Company adopted a share repurchase program on September 3, 2020 to repurchase up to approximately 5% of the Companys outstanding shares and repurchased 1,533,500 shares in the fourth quarter of 2020 recorded in treasury stock on the balance sheet. The tangible common equity to tangible assets ratio was 14.11% at December 31, 2020, 14.23% at September 30, 2020, and 14.81% at December 31, 2019. At December 31, 2020, the Company and the Bank had strong capital positions and exceeded all regulatory capital requirements.

About HarborOne Bancorp, Inc.

HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered savings bank. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 26 full-service branches located in Massachusetts and Rhode Island, and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. The Bank also provides a range of educational services through "HarborOne U," with classes on small business, financial literacy and personal enrichment at two campuses located adjacent to our Brockton and Mansfield locations. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, is a full-service mortgage lender with more than 30 offices in Massachusetts, Rhode Island, New Hampshire, Maine, New Jersey and Florida and is licensed to lend in four additional states.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as "believes," "will," "would," "expects," "project," "may," "could," "developments," "strategic," "launching," "opportunities," "anticipates," "estimates," "intends," "plans," "targets" and similar expressions. These statements are based upon the current beliefs and expectations of the Companys management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, the negative impacts and disruptions of the COVID-19 pandemic and the measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the length and extent of economic contraction as a result of the COVID-19 pandemic; the effects of continued deterioration in employment levels, general business and economic conditions 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 Companys loans; changes in customer behavior; turbulence in the capital and debt markets and the impact of such conditions on the Companys business activities; changes in interest rates; increases in loan default and charge off rates; decreases in the value of securities in the Companys 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; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; reputational risk relating to the Companys participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Companys financial statements will become impaired; demand for loans in the Companys market area; the Companys 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 10K and Quarterly Reports on Form 10Q as filed with the Securities and Exchange Commission (the "SEC"), which are available at the SECs website, www.sec.gov . Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne Bancorp, Inc.s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures

In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. The Companys management believes that the supplemental non-GAAP information, which consists of the tax equivalent basis for yields, the efficiency ratio, tangible common equity to tangible assets ratio and tangible book value per share is utilized by regulators and market analysts to evaluate a companys 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands)

 

2020

 

2020

 

2020

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

31,777

 

$

29,180

 

$

30,355

 

$

35,264

 

$

24,464

Short-term investments

 

 

174,093

 

 

108,338

 

 

218,617

 

 

200,156

 

 

187,152

Total cash and cash equivalents

 

 

205,870

 

 

137,518

 

 

248,972

 

 

235,420

 

 

211,616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

276,498

 

 

280,308

 

 

262,710

 

 

249,789

 

 

239,473

Securities held to maturity, at amortized cost

 

 

 

 

 

 

 

 

 

 

26,372

Federal Home Loan Bank stock, at cost

 

 

8,738

 

 

11,631

 

 

15,786

 

 

13,530

 

 

17,121

Asset held for sale

 

 

 

 

 

 

8,536

 

 

8,536

 

 

8,536

Loans held for sale, at fair value

 

 

208,612

 

 

190,373

 

 

158,898

 

 

118,316

 

 

110,552

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

1,551,265

 

 

1,380,071

 

 

1,317,145

 

 

1,211,435

 

 

1,168,412

Commercial construction

 

 

99,331

 

 

211,953

 

 

194,549

 

 

160,993

 

 

153,907

Commercial and industrial

 

 

464,393

 

 

480,129

 

 

456,192

 

 

317,559

 

 

306,282

Total commercial loans

 

 

2,114,989

 

 

2,072,153

 

 

1,967,886

 

 

1,689,987

 

 

1,628,601

Residential real estate

 

 

1,105,823

 

 

1,130,935

 

 

1,151,606

 

 

1,102,639

 

 

1,107,076

Consumer

 

 

273,830

 

 

312,743

 

 

354,530

 

 

391,244

 

 

435,881

Loans

 

 

3,494,642

 

 

3,515,831

 

 

3,474,022

 

 

3,183,870

 

 

3,171,558

Less: Allowance for loan losses

 

 

(55,395)

 

 

(49,223)

 

 

(36,107)

 

 

(26,389)

 

 

(24,060)

Net loans

 

 

3,439,247

 

 

3,466,608

 

 

3,437,915

 

 

3,157,481

 

 

3,147,498

Mortgage servicing rights, at fair value

 

 

24,833

 

 

20,159

 

 

16,127

 

 

13,207

 

 

17,150

Goodwill

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

 

 

69,802

Other intangible assets

 

 

4,370

 

 

4,694

 

 

5,141

 

 

5,588

 

 

6,035

Other assets

 

 

245,645

 

 

247,226

 

 

241,019

 

 

229,537

 

 

204,766

Total assets

 

$

4,483,615

 

$

4,428,319

 

$

4,464,906

 

$

4,101,206

 

$

4,058,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposit accounts

 

$

689,672

 

$

650,336

 

$

642,971

 

$

439,793

 

$

406,403

NOW accounts

 

 

218,584

 

 

202,020

 

 

199,400

 

 

174,971

 

 

165,877

Regular savings and club accounts

 

 

998,994

 

 

912,017

 

 

876,753

 

 

744,564

 

 

626,685

Money market deposit accounts

 

 

866,661

 

 

815,644

 

 

831,653

 

 

809,622

 

 

856,830

Term certificate accounts

 

 

732,298

 

 

785,871

 

 

757,897

 

 

852,274

 

 

887,078

Total deposits

 

 

3,506,209

 

 

3,365,888

 

 

3,308,674

 

 

3,021,224

 

 

2,942,873

Short-term borrowed funds

 

 

35,000

 

 

95,000

 

 

200,000

 

 

104,000

 

 

183,000

Long-term borrowed funds

 

 

114,097

 

 

141,106

 

 

141,114

 

 

181,123

 

 

171,132

Subordinated debt

 

 

34,033

 

 

34,002

 

 

33,970

 

 

33,938

 

 

33,907

Other liabilities and accrued expenses

 

 

97,962

 

 

98,220

 

 

96,693

 

 

85,782

 

 

62,215

Total liabilities

 

 

3,787,301

 

 

3,734,216

 

 

3,780,451

 

 

3,426,067

 

 

3,393,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

584

 

 

584

 

 

584

 

 

584

 

 

584

Additional paid-in capital

 

 

464,176

 

 

463,531

 

 

462,881

 

 

461,616

 

 

460,232

Unearned compensation - ESOP

 

 

(31,299)

 

 

(31,759)

 

 

(32,218)

 

 

(32,678)

 

 

(33,137)

Retained earnings

 

 

277,312

 

 

261,304

 

 

251,032

 

 

242,080

 

 

237,356

Treasury stock

 

 

(16,644)

 

 

(1,333)

 

 

(721)

 

 

(721)

 

 

(721)

Accumulated other comprehensive income

 

 

2,185

 

 

1,776

 

 

2,897

 

 

4,258

 

 

1,480

Total stockholders' equity

 

 

696,314

 

 

694,103

 

 

684,455

 

 

675,139

 

 

665,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

4,483,615

 

$

4,428,319

 

$

4,464,906

 

$

4,101,206

 

$

4,058,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands, except share data)

 

2020

 

2020

 

2020

2020

2019

Interest and dividend income:

Interest and fees on loans

$

35,274

$

34,496

$

33,970

$

34,025

$

36,195

Interest on loans held for sale

1,267

1,060

988

577

1,120

Interest on securities

1,064

1,317

1,424

1,808

1,580

Other interest and dividend income

115

175

239

759

828

Total interest and dividend income

37,720

37,048

36,621

37,169

39,723

Interest expense:

Interest on deposits

3,775

4,520

5,805

8,693

9,480

Interest on FHLB borrowings

671

835

845

1,253

1,385

Interest on subordinated debentures

524

524

524

523

524

Total interest expense

4,970

5,879

7,174

10,469

11,389

Net interest and dividend income

32,750

31,169

29,447

26,700

28,334

Provision for loan losses

7,608

13,454

10,004

3,749

1,251

Net interest and dividend income, after provision for loan losses

25,142

17,715

19,443

22,951

27,083

Noninterest income:

Mortgage banking income:

Gain on sale of mortgage loans

28,274

34,055

30,862

12,278

9,471

Changes in mortgage servicing rights fair value

(1,041)

(193)

(1,111)

(4,387)

625

Other

4,676

4,281

4,110

2,571

2,894

Total mortgage banking income

31,909

38,143

33,861

10,462

12,990

Deposit account fees

3,667

3,451

2,969

3,931

4,274

Income on retirement plan annuities

106

104

103

101

102

Loss on asset held for sale

(482)

Gain on sale and call of securities, net

8

2,525

Bank-owned life insurance income

550

560

554

551

343

Other income

949

2,203

1,143

1,296

912

Total noninterest income

37,181

44,461

38,638

18,866

18,139

Noninterest expenses:

Compensation and benefits

27,122

29,839

27,469

21,185

23,719

Occupancy and equipment

4,545

4,581

4,152

4,563

4,366

Data processing

2,235

2,119

2,277

2,180

2,251

Loan expense

2,843

3,189

2,763

1,481

1,893

Marketing

640

817

1,057

876

771

Professional fees

1,252

1,458

1,518

1,228

2,470

Deposit insurance

320

310

279

271

5

Other expenses

2,483

3,409

4,323

3,604

3,260

Total noninterest expenses

41,440

45,722

43,838

35,388

38,735

Income before income taxes

20,883

16,454

14,243

6,429

6,487

Income tax provision

3,283

4,561

3,668

1,705

2,180

Net income

$

17,600

$

11,893

$

10,575

$

4,724

$

4,307

Earnings per common share:

Basic

$

0.33

$

0.22

$

0.19

$

0.09

$

0.08

Diluted

$

0.33

$

0.22

$

0.19

$

0.09

$

0.08

Weighted average shares outstanding:

Basic

53,947,868

54,465,339

54,450,146

54,392,465

54,208,629

Diluted

53,973,737

54,465,339

54,450,146

54,392,465

54,209,182

For the Years Ended December 31,

(dollars in thousands, except share data)

2020

2019

$ Change

% Change

Interest and dividend income:

Interest and fees on loans

$

137,765

$

142,228

$

(4,463)

(3.1)

%

Interest on loans held for sale

3,892

2,767

1,125

40.7

Interest on securities

5,613

6,819

(1,206)

(17.7)

Other interest and dividend income

1,288

2,970

(1,682)

(56.6)

Total interest and dividend income

148,558

154,784

(6,226)

(4.0)

Interest expense:

Interest on deposits

22,793

37,057

(14,264)

(38.5)

Interest on FHLB borrowings

3,604

6,588

(2,984)

(45.3)

Interest on subordinated debentures

2,095

2,077

18

0.9

Total interest expense

28,492

45,722

(17,230)

(37.7)

Net interest and dividend income

120,066

109,062

11,004

10.1

Provision for loan losses

34,815

4,747

30,068

633.4

Net interest and dividend income, after provision for loan losses

85,251

104,315

(19,064)

(18.3)

Noninterest income:

Mortgage banking income:

Gain on sale of mortgage loans

105,469

33,557

71,912

214.3

Changes in mortgage servicing rights fair value

(6,732)

(6,241)

(491)

(7.9)

Other

15,638

10,336

5,302

51.3

Total mortgage banking income

114,375

37,652

76,723

203.8

Deposit account fees

14,018

16,294

(2,276)

(14.0)

Income on retirement plan annuities

414

402

12

3.0

Loss on disposal of asset held for sale

(482)

482

100.0

Gain on sale and call of securities, net

2,533

1,344

1,189

88.5

Bank-owned life insurance income

2,215

1,105

1,110

100.5

Other income

5,591

4,657

934

20.1

Total noninterest income

139,146

60,972

78,174

128.2

Noninterest expenses:

Compensation and benefits

105,615

86,787

18,828

21.7

Occupancy and equipment

17,841

17,396

445

2.6

Data processing

8,811

8,692

119

1.4

Loan expense

10,276

6,202

4,074

65.7

Marketing

3,390

3,705

(315)

(8.5)

Professional fees

5,456

5,689

(233)

(4.1)

Deposit insurance

1,180

1,035

145

14.0

Other expenses

13,819

13,105

714

5.4

Total noninterest expenses

166,388

142,611

23,777

16.7

Income before income taxes

58,009

22,676

35,333

155.8

Income tax provision

13,217

4,408

8,809

199.8

Net income

$

44,792

$

18,268

$

26,524

145.2

%

Earnings per common share:

Basic

$

0.82

$

0.33

Diluted

$

0.82

$

0.33

Weighted average shares outstanding:

Basic

54,313,368

55,731,637

Diluted

54,319,835

55,731,776

Quarters Ended

December 31, 2020

September 30, 2020

December 31, 2019

Average

Average

Average

Outstanding

Yield/

Outstanding

Yield/

Outstanding

Yield/

Balance

Interest

Cost(6)

Balance

Interest

Cost(6)

Balance

Interest

Cost(6)

(dollars in thousands)

Interest-earning assets:

Investment securities (1)

$

271,511

$

1,064

1.56

%

$

269,477

$

1,319

1.95

%

$

236,828

$

1,595

2.67

%

Other interest-earning assets

84,969

115

0.54

121,384

175

0.57

159,211

828

2.06

Loans held for sale

178,980

1,267

2.82

139,418

1,060

3.02

115,699

1,120

3.84

Loans

Commercial loans (2)

2,112,377

20,823

3.92

2,017,492

19,066

3.76

1,591,187

19,230

4.79

Residential real estate loans (2)

1,106,286

11,242

4.04

1,135,947

11,833

4.14

1,105,026

12,284

4.41

Consumer loans (2)

292,665

3,209

4.36

333,623

3,597

4.29

442,689

4,681

4.19

Total loans

3,511,328

35,274

4.00

3,487,062

34,496

3.94

3,138,902

36,195

4.57

Total interest-earning assets

4,046,788

37,720

3.71

4,017,341

37,050

3.67

3,650,640

39,738

4.32

Noninterest-earning assets

317,663

333,444

288,558

Total assets

$

4,364,451

$

4,350,785

$

3,939,198

Interest-bearing liabilities:

Savings accounts

$

968,766

621

0.26

$

897,751

589

0.26

$

616,008

1,202

0.77

NOW accounts

205,845

40

0.08

199,982

39

0.08

142,505

28

0.08

Money market accounts

840,674

710

0.34

825,732

745

0.36

867,066

3,109

1.42

Certificates of deposit

649,919

2,206

1.35

684,002

2,895

1.68

811,199

4,725

2.31

Brokered deposits

109,788

198

0.72

139,887

252

0.72

69,035

416

2.39

Total interest-bearing deposits

2,774,992

3,775

0.54

2,747,354

4,520

0.65

2,505,813

9,480

1.50

FHLB advances

119,763

671

2.23

149,750

835

2.22

249,102

1,385

2.21

Subordinated debentures

34,015

524

6.13

33,983

524

6.13

33,887

524

6.13

Total borrowings

153,778

1,195

3.09

183,733

1,359

2.94

282,989

1,909

2.68

Total interest-bearing liabilities

2,928,770

4,970

0.68

2,931,087

5,879

0.80

2,788,802

11,389

1.62

Noninterest-bearing liabilities:

Noninterest-bearing deposits

656,227

641,353

433,478

Other noninterest-bearing liabilities

84,387

89,319

54,022

Total liabilities

3,669,384

3,661,759

3,276,302

Total equity

695,067

689,026

662,896

Total liabilities and equity

$

4,364,451

$

4,350,785

$

3,939,198

Tax equivalent net interest income

32,750

31,171

28,349

Tax equivalent interest rate spread (3)

3.03

%

2.87

%

2.70

%

Less: tax equivalent adjustment

2

15

Net interest income as reported

$

32,750

$

31,169

$

28,334

Net interest-earning assets (4)

$

1,118,018

$

1,086,254

$

861,838

Net interest margin (5)

3.22

%

3.09

%

3.08

%

Tax equivalent effect

Net interest margin on a fully tax equivalent basis

3.22

%

3.09

%

3.08

%

Average interest-earning assets to average
interest-bearing liabilities

138.17

%

137.06

%

130.90

%

Supplemental information:

Total deposits, including demand deposits

$

3,431,219

$

3,775

$

3,388,707

$

4,520

$

2,939,291

$

9,480

Cost of total deposits

0.44

%

0.53

%

1.28

%

Total funding liabilities, including demand deposits

$

3,584,997

$

4,970

$

3,572,440

$

5,879

$

3,222,280

$

11,389

Cost of total funding liabilities

0.55

%

0.65

%

1.40

%

(1) Includes securities available for sale, except for the quarter ended December 31, 2019, which also includes securities held to maturity. Interest income from tax exempt securities is computed on a taxable equivalent basis using a tax rate of 21% for the quarters presented. The yield on investments before tax equivalent adjustments for the quarters presented were 1.56%, 1.95%, and 2.64%, respectively.

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

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

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

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

(6) Annualized.

Years Ended

December 31, 2020

December 31, 2019

Average

Average

Outstanding

Yield/

Outstanding

Yield/

Balance

Interest

Cost

Balance

Interest

Cost

(dollars in thousands)

Interest-earning assets:

Investment securities (1)

$

264,196

$

5,635

2.13

%

$

245,021

$

6,923

2.83

%

Other interest-earning assets

153,676

1,288

0.84

102,810

2,970

2.89

Loans held for sale

124,936

3,892

3.12

67,136

2,767

4.12

Loans

Commercial loans (2)

1,913,304

76,208

3.98

1,483,439

74,085

4.99

Residential real estate loans (2)

1,116,601

46,430

4.16

1,115,616

49,459

4.43

Consumer loans (2)

353,412

15,127

4.28

460,625

18,684

4.06

Total loans

3,383,317

137,765

4.07

3,059,680

142,228

4.65

Total interest-earning assets

3,926,125

148,580

3.78

3,474,647

154,888

4.46

Noninterest-earning assets

324,942

270,441

Total assets

$

4,251,067

$

3,745,088

Interest-bearing liabilities:

Savings accounts

$

849,239

3,342

0.39

$

548,746

3,032

0.55

NOW accounts

188,103

143

0.08

139,851

104

0.07

Money market accounts

832,131

5,245

0.63

853,743

12,670

1.48

Certificates of deposit

714,628

12,930

1.81

811,089

18,880

2.33

Brokered deposits

102,265

1,133

1.11

97,613

2,371

2.43

Total interest-bearing deposits

2,686,366

22,793

0.85

2,451,042

37,057

1.51

FHLB advances

192,059

3,604

1.88

286,156

6,588

2.30

Subordinated debentures

33,967

2,095

6.17

33,848

2,077

6.14

Total borrowings

226,026

5,699

2.52

320,004

8,665

2.71

Total interest-bearing liabilities

2,912,392

28,492

0.98

2,771,046

45,722

1.65

Noninterest-bearing liabilities:

Noninterest-bearing deposits

576,128

443,570

Other noninterest-bearing liabilities

78,602

51,946

Total liabilities

3,567,122

3,266,562

Total equity

683,945

478,526

Total liabilities and equity

$

4,251,067

$

3,745,088

Tax equivalent net interest income

120,088

109,166

Tax equivalent interest rate spread (3)

2.80

%

2.81

%

Less: tax equivalent adjustment

22

104

Net interest income as reported

$

120,066

$

109,062

Net interest-earning assets (4)

$

1,013,733

$

703,601

Net interest margin (5)

3.06

%

3.14

%

Tax equivalent effect

Net interest margin on a fully tax equivalent basis

3.06

%

3.14

%

Average interest-earning assets to average interest-bearing liabilities

134.81

%

125.39

%

Supplemental information:

Total deposits, including demand deposits

$

3,262,494

$

22,793

$

2,894,612

$

37,057

Cost of total deposits

0.70

%

1.28

%

Total funding liabilities, including demand deposits

$

3,488,520

$

28,492

$

3,214,616

$

45,722

Cost of total funding liabilities

0.82

%

1.42

%

(1) Includes securities available for sale for the year ended December 31, 2020 and securities available for sale and securities held to maturity for the year ended December 31, 2019. Interest income from tax exempt securities is computed on a tax equivalent basis using a tax rate of 21%. The yield on investments before tax equivalent adjustments was 2.12% and 2.78% for the years ended December 31, 2020 and 2019, respectively.

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

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

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

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

Average Balances - Trend - Quarters Ended

December 31, 2020

September 30, 2020

June 30, 2020

March 31, 2020

December 31, 2019

(in thousands)

Interest-earning assets:

Investment securities (1)

$

271,511

$

269,477

$

240,025

$

275,632

$

236,828

Other interest-earning assets

84,969

121,384

222,840

186,619

159,211

Loans held for sale

178,980

139,418

119,047

61,548

115,699

Loans

Commercial loans (2)

2,112,377

2,017,492

1,872,349

1,647,667

1,591,188

Residential real estate loans (2)

1,106,286

1,135,947

1,123,896

1,100,177

1,105,025

Consumer loans (2)

292,665

333,623

372,929

415,317

442,689

Total loans

3,511,328

3,487,062

3,369,174

3,163,161

3,138,902

Total interest-earning assets

4,046,788

4,017,341

3,951,086

3,686,960

3,650,640

Noninterest-earning assets

317,663

333,444

334,452

314,193

288,558

Total assets

$

4,364,451

$

4,350,785

$

4,285,538

$

4,001,153

$

3,939,198

Interest-bearing liabilities:

Savings accounts

$

968,766

$

897,751

$

842,560

$

686,031

$

616,008

NOW accounts

205,845

199,982

187,560

158,702

142,505

Money market accounts

840,674

825,732

826,939

835,154

867,066

Certificates of deposit

649,919

684,002

730,756

794,883

811,199

Brokered deposits

109,788

139,887

66,701

92,189

69,035

Total interest-bearing deposits

2,774,992

2,747,354

2,654,516

2,566,959

2,505,813

FHLB advances

119,763

149,750

258,679

241,302

249,102

Subordinated debentures

34,015

33,983

33,951

33,919

33,887

Total borrowings

153,778

183,733

292,630

275,221

282,989

Total interest-bearing liabilities

2,928,770

2,931,087

2,947,146

2,842,180

2,788,802

Noninterest-bearing liabilities:

Noninterest-bearing deposits

656,227

641,353

585,715

419,620

433,478

Other noninterest-bearing liabilities

84,387

89,319

72,808

67,714

54,022

Total liabilities

3,669,384

3,661,759

3,605,669

3,329,514

3,276,302

Total equity

695,067

689,026

679,869

671,639

662,896

Total liabilities and equity

$

4,364,451

$

4,350,785

$

4,285,538

$

4,001,153

$

3,939,198

Annualized Yield Trend - Quarters Ended

December 31, 2020

September 30, 2020

June 30, 2020

March 31, 2020

December 31, 2019

Interest-earning assets:

Investment securities (1)

1.56

%

1.95

%

2.40

%

2.66

%

2.67

%

Other interest-earning assets

0.54

%

0.57

%

0.43

%

1.64

%

2.06

%

Loans held for sale

2.82

%

3.02

%

3.34

%

3.77

%

3.84

%

Commercial loans (2)

3.92

%

3.76

%

3.91

%

4.42

%

4.79

%

Residential real estate loans (2)

4.04

%

4.14

%

4.23

%

4.22

%

4.41

%

Consumer loans (2)

4.36

%

4.29

%

4.27

%

4.22

%

4.20

%

Total loans

4.00

%

3.94

%

4.06

%

4.33

%

4.58

%

Total interest-earning assets

3.71

%

3.67

%

3.73

%

4.06

%

4.32

%

Interest-bearing liabilities:

Savings accounts

0.26

%

0.26

%

0.40

%

0.76

%

0.77

%

NOW accounts

0.08

%

0.08

%

0.07

%

0.08

%

0.08

%

Money market accounts

0.34

%

0.36

%

0.59

%

1.24

%

1.42

%

Certificates of deposit

1.35

%

1.68

%

1.91

%

2.20

%

2.31

%

Brokered deposits

0.72

%

0.72

%

1.56

%

1.85

%

2.39

%

Total interest-bearing deposits

0.54

%

0.65

%

0.88

%

1.36

%

1.50

%

FHLB advances

2.23

%

2.22

%

1.31

%

2.09

%

2.21

%

Subordinated debentures

6.13

%

6.13

%

6.21

%

6.20

%

6.13

%

Total borrowings

3.09

%

2.94

%

1.88

%

2.60

%

2.68

%

Total interest-bearing liabilities

0.68

%

0.80

%

0.98

%

1.48

%

1.62

%

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

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

Quarters Ended

December 31,

September 30,

June 30,

March 31,

December 31,

Performance Ratios (annualized):

2020

2020

2020

2020

2019

(dollars in thousands)

Return on average assets (ROAA)

1.61

%

1.09

%

0.99

%

0.47

%

0.44

%

Return on average equity (ROAE)

10.13

%

6.90

%

6.22

%

2.81

%

2.60

%

Total noninterest expense

$

41,440

$

45,722

$

43,838

$

35,388

$

38,735

Less: Amortization of other intangible assets

324

447

447

447

448

Total adjusted noninterest expense

$

41,116

$

45,275

$

43,391

$

34,941

$

38,287

Net interest and dividend income

$

32,750

$

31,169

$

29,447

$

26,700

$

28,334

Total noninterest income

37,181

44,461

38,638

18,866

18,139

Total revenue

$

69,931

$

75,630

$

68,085

$

45,566

$

46,473

Efficiency ratio (1)

58.80

%

59.86

%

63.73

%

76.68

%

82.39

%

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

At or for the Quarters Ended

December 31,

September 30,

June 30,

March 31,

December 31,

Asset Quality

2020

2020

2020

2020

2019

(dollars in thousands)

Total nonperforming assets

$

34,696

$

40,925

$

38,599

$

32,134

$

31,040

Nonperforming assets to total assets

0.77

%

0.93

%

0.86

%

0.78

%

0.76

%

Allowance for loan losses to total loans

1.59

%

1.40

%

1.04

%

0.83

%

0.76

%

Net charge offs

$

1,436

$

338

$

286

$

1,420

$

235

Annualized net charge offs/average loans

0.16

%

0.04

%

0.03

%

0.18

%

0.03

%

Allowance for loan losses to nonperforming loans

162.40

%

122.86

%

94.86

%

83.52

%

79.35

%

December 31,

September 30,

June 30,

March 31,

December 31,

Capital and Share Related

2020

2020

2020

2020

2019

(dollars in thousands, except share data)

Common stock outstanding

57,205,458

58,342,464

58,418,021

58,418,021

58,418,021

Book value per share

$

12.17

$

11.90

$

11.72

$

11.56

$

11.40

Tangible common equity:

Total stockholders' equity

$

696,314

$

694,103

$

684,455

$

675,139

$

665,794

Less: Goodwill

69,802

69,802

69,802

69,802

69,802

Less: Other intangible assets (1)

4,370

4,694

5,141

5,588

6,035

Tangible common equity

$

622,142

$

619,607

$

609,512

$

599,749

$

589,957

Tangible book value per share (2)

$

10.88

$

10.62

$

10.43

$

10.27

$

10.10

Tangible assets:

Total assets

$

4,483,615

$

4,428,319

$

4,464,906

$

4,101,206

$

4,058,921

Less: Goodwill

69,802

69,802

69,802

69,802

69,802

Less: Other intangible assets (1)

4,370

4,694

5,141

5,588

6,035

Tangible assets

$

4,409,443

$

4,353,823

$

4,389,963

$

4,025,816

$

3,983,084

Tangible common equity / tangible assets (3)

14.11

%

14.23

%

13.88

%

14.90

%

14.81

%

(1) Other intangible assets includes core deposit intangible and noncompete intangible.

(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 Mortgage

HarborOne Bank

For the Quarter Ended

For the Quarter Ended

December 31,

September 30,

December 31,

December 31,

September 30,

December 31,

2020

2020

2019

2020

2020

2019

(in thousands)

Net interest and dividend income

$

1,215

$

1,000

$

460

$

31,970

$

30,599

$

27,810

Provision for loan losses

7,609

13,454

1,251

Net interest and dividend income, after
provision for loan losses

1,215

1,000

460

24,361

17,145

26,559

Mortgage banking income:

Gain on sale of mortgage loans

28,274

34,055

9,471

Intersegment gain (loss)

704

645

317

(704)

(645)

(317)

Changes in mortgage servicing rights fair value

(679)

161

457

(362)

(354)

168

Other

4,347

3,947

2,527

329

334

367

Total mortgage banking income (loss)

32,646

38,808

12,772

(737)

(665)

218

Other noninterest income (loss)

3

(8)

(25)

5,269

6,326

5,174

Total noninterest income

32,649

38,800

12,747

4,532

5,661

5,392

Noninterest expense

18,624

19,156

12,257

22,548

26,300

26,161

Income (loss) before income taxes

15,240

20,644

950

6,345

(3,494)

5,790

Provision for income taxes

4,297

4,550

179

(1,672)

571

1,752

Net income (loss)

$

10,943

$

16,094