HarborOne Bancorp, Inc. Announces 2020 Fourth Quarter Earnings


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BROCKTON, Mass.–(BUSINESS WIRE)–
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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of loans and 1.64{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of loans, excluding Paycheck Protection Program loans
  • Mortgage banking income grew to $31.9 million, or 145.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} as compared to the fourth quarter 2019
  • Net interest margin expanded 13 basis points to 3.22{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
  • Return on average assets was 1.61{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} and return on average equity was 10.13{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}
  • Continued commercial loan growth providing expanded commercial deposit growth
  • Deposit growth of $140.3 million, or 4.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, with improved cost of funds and favorable mix

“We’re pleased that the momentum we had in Q3 continued into Q4. It’s 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. “We’re very focused on continuing to deliver a tremendous customer experience.”

Net Interest Income

The Company’s net interest and dividend income was $32.8 million for the quarter ended December 31, 2020, up $1.6 million, or 5.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, from $31.2 million for the quarter ended September 30, 2020 and up $4.5 million, or 15.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, from $28.3 million for the quarter ended December 31, 2019. The tax equivalent interest rate spread and net interest margin were 3.03{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} and 3.22{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, respectively, for the quarter ended December 31, 2020, compared to 2.87{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} and 3.09{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, respectively, for the quarter ended September 30, 2020, and 2.70{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} and 3.08{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, in total interest and dividend income and a decrease of $909,000, or 15.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} for the quarter ended December 31, 2020, up from 3.94{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, in total interest expense, partially offset by a $2.0 million, or 5.0{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, as compared to the quarter ended December 31, 2019, primarily due to an $18.9 million, or 145.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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 Director’s 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} for the quarter ended December 31, 2020, compared to 27.7{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} for the quarter ended September 30, 2020 and 33.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, of total loans at December 31, 2020, compared to $49.2 million, or 1.40{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, of total loans at September 30, 2020 and $24.1 million, or 0.76{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, of total loans at December 31, 2019. Changes in the provision for loan losses are based on management’s assessment of loan portfolio growth and composition changes, historical charge off trends, and ongoing evaluation of credit quality and current economic conditions.

The 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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 loan’s 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, of total commercial loans, of which $222.2 million are loans included in an at risk sector. As of December 31, 2020, 90.8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of the commercial deferrals have expired and the borrower is making payments as agreed, 0.09{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of the commercial deferrals have expired and the borrower is delinquent, and 9.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of total residential loans, of which 86.1{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of the deferrals have expired and are paying as agreed and 5.4{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, of total consumer loans, of which 93.5{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of average loans outstanding on an annualized basis, compared to $338,000, or 0.04{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of average loans outstanding on an annualized basis, for the quarter ended September 30, 2020 and $235,000, or 0.03{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} at December 31, 2020, 0.93{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} at September 30, 2020, and 0.76{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} of the Company’s 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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} at December 31, 2020, 14.23{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} at September 30, 2020, and 14.81{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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 Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, the 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 Company’s loans; changes in customer behavior; 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; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; reputational risk relating to the Company’s 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 Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne Bancorp, Inc.’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The Company’s management believes that the supplemental non-GAAP information, which consists of the tax equivalent basis for yields, the efficiency ratio, tangible common equity to tangible assets ratio and tangible book value per share is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

137,765

 

$

142,228

 

$

(4,463)

 

(3.1)

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

$

269,477

 

$

1,319

 

1.95

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

$

236,828

 

$

1,595

 

2.67

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

2.87

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

2.70

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

3.09

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

3.08

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Tax equivalent effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

3.22

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

3.09

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

3.08

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average interest-earning assets to average

interest-bearing liabilities

 

 

138.17

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

137.06

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

130.90

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

0.53

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

1.28

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

0.65

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

1.40

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} for the quarters presented. The yield on investments before tax equivalent adjustments for the quarters presented were 1.56{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 1.95{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, and 2.64{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}, 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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

$

245,021

 

$

6,923

 

2.83

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

2.81

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

3.14

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Tax equivalent effect

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin on a fully tax equivalent basis

 

 

 

 

 

 

 

3.06

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

3.14

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Average interest-earning assets to average interest-bearing liabilities

 

 

134.81

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

125.39

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits, including demand deposits

 

$

3,262,494

 

$

22,793

 

 

 

$

2,894,612

 

$

37,057

 

 

 

Cost of total deposits

 

 

 

 

 

 

 

0.70

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

1.28

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total funding liabilities, including demand deposits

 

$

3,488,520

 

$

28,492

 

 

 

$

3,214,616

 

$

45,722

 

 

 

Cost of total funding liabilities

 

 

 

 

 

 

 

0.82

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

1.42

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}. The yield on investments before tax equivalent adjustments was 2.12{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} and 2.78{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} 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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.95

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.40

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.66

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.67

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Other interest-earning assets

 

 

0.54

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.57

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.43

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.64

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.06

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Loans held for sale

 

 

2.82

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

3.02

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

3.34

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

3.77

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

3.84

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Commercial loans (2)

 

 

3.92

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

3.76

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

3.91

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.42

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.79

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Residential real estate loans (2)

 

 

4.04

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.14

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.23

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.22

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.41

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Consumer loans (2)

 

 

4.36

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.29

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.27

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.22

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.20

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total loans

 

 

4.00

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

3.94

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.06

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.33

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.58

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total interest-earning assets

 

 

3.71

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

3.67

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

3.73

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.06

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

4.32

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

0.26

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.26

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.40

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.76

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.77

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

NOW accounts

 

 

0.08

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.08

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.07

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.08

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.08

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Money market accounts

 

 

0.34

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.36

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.59

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.24

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.42

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Certificates of deposit

 

 

1.35

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.68

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.91

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.20

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.31

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Brokered deposits

 

 

0.72

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.72

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.56

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.85

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.39

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total interest-bearing deposits

 

 

0.54

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.65

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.88

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.36

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.50

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

FHLB advances

 

 

2.23

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.22

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.31

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.09

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.21

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Subordinated debentures

 

 

6.13

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

6.13

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

6.21

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

6.20

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

6.13

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total borrowings

 

 

3.09

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.94

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.88

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.60

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.68

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Total interest-bearing liabilities

 

 

0.68

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.80

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.98

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.48

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.62

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.09

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.99

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.47

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.44

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (ROAE)

 

 

10.13

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

6.90

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

6.22

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.81

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

2.60

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

59.86

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

63.73

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

76.68

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

82.39

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.93

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.86

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.78

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.76

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

 

 

1.59

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.40

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

1.04

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.83

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.76

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge offs

 

$

1,436

 

$

338

 

$

286

 

$

1,420

 

$

235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized net charge offs/average loans

 

 

0.16

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.04

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.03

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.18

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

0.03

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to nonperforming loans

 

 

162.40

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

122.86

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

94.86

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

83.52

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

79.35

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

14.23

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

13.88

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

14.90

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

14.81

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

$

771

 

$

8,017

 

$

(4,065)

 

$

4,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HarborOne Mortgage

 

HarborOne Bank

 

 

For the Years Ended

 

For the Years Ended

 

 

December 31,

 

December 31,

 

December 31,

 

December 31,

 

 

2020

 

2019

 

2020

 

2019

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

$

3,235

 

$

1,064

 

$

118,218

 

$

109,106

Provision for loan losses

 

 

 

 

 

 

34,816

 

 

4,747

Net interest and dividend income, after provision for loan losses

 

 

3,235

 

 

1,064

 

 

83,402

 

 

104,359

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

105,469

 

 

33,556

 

 

 

 

1

Intersegment gain (loss)

 

 

3,148

 

 

1,183

 

 

(3,148)

 

 

(1,183)

Changes in mortgage servicing rights fair value

 

 

(4,356)

 

 

(4,810)

 

 

(2,376)

 

 

(1,431)

Other

 

 

14,278

 

 

8,842

 

 

1,360

 

 

1,494

Total mortgage banking income (loss)

 

 

118,539

 

 

38,771

 

 

(4,164)

 

 

(1,119)

Other noninterest income (loss)

 

 

(138)

 

 

(45)

 

 

24,909

 

 

23,365

Total noninterest income

 

 

118,401

 

 

38,726

 

 

20,745

 

 

22,246

Noninterest expense

 

 

66,859

 

 

39,753

 

 

98,354

 

 

100,688

Income before income taxes

 

 

54,777

 

 

37

 

 

5,793

 

 

25,917

Provision (benefit) for income taxes

 

 

12,964

 

 

(77)

 

 

527

 

 

5,019

Net income

 

$

41,813

 

$

114

 

$

5,266

 

$

20,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At Risk Sectors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent

 

 

 

 

 

 

 

 

 

Health

 

 

 

 

 

Total

 

 

 

at risk

 

 

 

 

 

 

 

 

 

and Social

 

 

 

 

 

at risk

 

Total

 

sector

 

 

 

Retail

 

Office

 

Hotel

 

Services

 

Restaurants

 

Recreation

 

sectors

 

loans

 

to total

 

 

 

(dollars in thousands)

 

Commercial real estate

 

$

219,807

 

$

193,137

 

$

190,316

 

$

107,522

 

$

10,052

 

$

14,831

 

$

735,665

 

$

1,551,265

 

47.4

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Commercial and industrial

 

 

28,572

 

 

16,298

 

 

2,624

 

 

90,719

 

 

34,628

 

 

6,435

 

 

179,276

 

 

464,393

 

38.6

 

Commercial construction

 

 

13,392

 

 

854

 

 

8,014

 

 

1,014

 

 

10,326

 

 

 

 

33,600

 

 

99,331

 

33.8

 

Total

 

$

261,771

 

$

210,289

 

$

200,954

 

$

199,255

 

$

55,006

 

$

21,266

 

$

948,541

 

$

2,114,989

 

44.8

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding

principal,

commercial deferrals

 

$

46,701

 

$

13,441

 

$

120,359

 

$

12,600

 

$

13,462

 

$

15,660

 

$

222,223

 

$

295,302

 

75.3

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

PPP loans, net of fees

 

$

4,451

 

$

 

$

444

 

$

36,243

 

$

7,278

 

$

1,819

 

$

50,235

 

$

123,894

 

40.5

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Nonaccrual loans

 

$

387

 

$

 

$

12,220

 

$

245

 

$

12

 

$

118

 

$

12,982

 

$

34,101

 

38.1

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} Active

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

deferrals to

 

 

 

 

Deferrals

 

 

Deferrals

 

 

 

 

 

 

 

Total

 

total

 

 

 

 

expired &

 

 

expired &

 

 

Active

 

 

Total

 

outstanding

 

outstanding

 

(dollars in thousands)

 

 

paying

 

 

delinquent

 

 

deferrals

 

 

deferrals

 

loans

 

loans

 

 

 

 

#

 

 

$

 

 

#

 

 

$

 

 

#

 

 

$

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

66

 

$

225,969

 

 

 

$

 

 

5

 

$

25,981

 

 

$

251,950

 

$

1,551,265

 

1.7

{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}

Commercial and industrial

 

 

89

 

 

42,280

 

 

2

 

 

261

 

 

9

 

 

811

 

 

 

43,352

 

 

464,393

 

0.2

 

Commercial construction