HarborOne Bancorp, Inc. (the "Company" or "HarborOne") (NASDAQ:HONE), the holding company for HarborOne Bank (the "Bank"), announced net income of $7.3 million, or $0.16 per diluted share, for the first quarter of 2023, compared to net income of $9.6 million, or $0.21 per diluted share, for the preceding quarter and net income of $12.3 million, or $0.25 per diluted share, for the same period last year.

Selected Financial Highlights:

Recent Company-wide cost savings measures and organizational efficiencies will provide approximately $4.1 million in annual cost savings; a branch closure and a branch relocation will provide additional long-term expense savings.
Returned $3.3 million of capital to shareholders via dividends and increased quarterly dividend by 7%.
Continued share repurchase program returning $26.8 million to shareholders, representing 2.0 million shares.
Disciplined underwriting continues to provide strong credit quality, with nonperforming loans to total loans of 0.27% compared to 0.32% on a linked-quarter basis.
Loan growth of $73.0 million, or 1.6%, and deposit growth of $52.2 million, or 1.2%, on a linked-quarter basis.

"While significant challenges presented themselves in Q1, I have tremendous confidence in our ability to manage through the current environment. Our excellent credit quality, strong capital position, and deposit growth provide the foundation for that confidence," said Joseph F. Casey, President and CEO. "Our team remains highly focused on ensuring stability in our deposit base. The Company has been proactive in reducing expenses at both HarborOne Mortgage and the Bank and will continue to look for additional opportunities. Our resilience and strategic discipline position us well to drive long-term value for our shareholders."

Net Interest Income

The Company's net interest and dividend income was $34.4 million for the quarter ended March 31, 2023, compared to $39.2 million for the quarter ended December 31, 2022, and $33.3 million for the quarter ended March 31, 2022. The tax equivalent interest rate spread and net interest margin were 2.28% and 2.78%, respectively, for the quarter ended March 31, 2023, compared to 2.88% and 3.23%, respectively, for the quarter ended December 31, 2022, and 3.12% and 3.21%, respectively, for the quarter ended March 31, 2022.

On a linked-quarter basis, the decreases in net interest and dividend income, tax equivalent interest rate spread, and net interest margin primarily reflect an increase in interest-bearing liabilities, with higher cost of funding, partially offset by increased loan balances and yields with liability repricing outpacing assets. The cost of funds was 188 basis points for the quarter ended March 31, 2023, compared to 114 basis points for the preceding quarter.

The $1.1 million increase in net interest and dividend income from the prior year quarter reflects an increase of $20.3 million, or 57.1%, in total interest and dividend income and an increase of $19.2 million, or 823.7%, in total interest expense. The changes reflect rate and volume changes in both interest-bearing assets and liabilities. The yield on interest-earning assets increased 108 basis points, while the average balance increased $849.7 million, and the cost of interest-bearing liabilities increased 192 basis points, while the average balance increased $887.5 million.

Noninterest Income

Total noninterest income decreased $1.2 million, or 12.2%, to $8.7 million for the quarter ended March 31, 2023, from $9.9 million for the quarter ended December 31, 2022. Mortgage loan closings for the quarter ended March 31, 2023 were $125.6 million with a gain on loan sales of $2.2 million, compared to $222.4 million in mortgage closings and $2.3 million in gain on sales for the preceding quarter as higher gain-on-sale margins help offset the seasonal loss in production volume. Deposit account fees were $4.7 million for the quarter ended March 31, 2023, compared to $5.0 million for the quarter ended December 31, 2022. Other income for the quarter ended March 31, 2023 decreased $1.7 million, primarily reflecting a $1.1 million decrease in swap fee income.

The decrease in the fair value of mortgage servicing rights for the three months ended March 31, 2023 was $1.3 million, as compared to a decrease of $2.1 million in the fair value of mortgage servicing rights for the three months ended December 31, 2022. The valuation was negatively impacted by key benchmark mortgage rates used in the valuation. The impact of principal payments on the underlying mortgages on the mortgage servicing rights was $371,000 and $570,000 for the quarters ended March 31, 2023 and December 31, 2022, respectively.

Total noninterest income decreased $10.4 million, or 54.4%, compared to the quarter ended March 31, 2022, primarily due to a $10.4 million, or 79.1%, decrease in mortgage banking income, driven by the decrease in loan demand as a result of interest rate increases. The prior year quarter also reflected a $6.1 million increase in the fair value of mortgage servicing rights.

Noninterest Expense

Total noninterest expenses were $31.5 million for the quarter ended March 31, 2023, a decrease of $3.1 million, or 9.0%, from the quarter ended December 31, 2022. Compensation and benefits decreased $2.3 million primarily reflecting decreased mortgage origination commission and incentive accruals. Other expenses decreased $1.6 million, or 35.7% for the quarter ended March 31 2023, primarily as a result of a legal settlement accrued for in the fourth quarter of 2022.

Total noninterest expenses decreased $3.3 million, or 9.5%, from the quarter ended March 31, 2022. Compensation and benefits decreased $2.9 million primarily reflecting decreased mortgage origination commission and incentive accruals.

During the quarter, management evaluated potential cost saving measures across the Company. This resulted in a reduction in force at HarborOne Mortgage, LLC ("HarborOne Mortgage") during the first quarter with an expected annual cost savings of $1.2 million and recognized severance expense of $249,000. During the second quarter of 2023 the Bank took further cost savings measures and organizational efficiencies with an estimated annual savings of $2.9 million and will recognize severance expense of $452,000. Additionally, the Bank sought and obtained regulatory approval in 2023 to close one branch and relocate another branch that will both provide additional long-term expense savings.

Income Tax Provision

The effective tax rate for the quarter ended March 31, 2023 was 24.9% compared to 22.4% for the quarter ended December 31, 2022. The 2022 effective tax rate was impacted by a tax benefit recorded for Industrial Revenue Bonds and a reserve release upon the expiration of the statute of limitations.

Asset Quality and Allowance for Credit Losses

Disciplined underwriting and active loan management continues to result in strong credit quality performance. Total nonperforming assets improved to $12.3 million at March 31, 2023, compared to $14.8 million at December 31, 2022 and $26.1 million at March 31, 2022. Nonperforming assets as a percentage of total assets were 0.22% at March 31, 2023, 0.28% at December 31, 2022, and 0.57% at March 31, 2022. During 2022, two large commercial credits were resolved, reducing nonperforming assets significantly.

The provision for funded loan credit losses for the quarter ended March 31, 2023 was $1.7 million and reflects provisioning for loan growth and increased economic uncertainty. Net recoveries totaled $11,000 for the quarter ended March 31, 2023. Net charge-offs totaled $2.1 million, or 0.19% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2022, and net charge-offs totaled $2.7 million, or 0.30% of average loans outstanding on an annualized basis, for the quarter ended March 31, 2022.

The allowance for credit losses ("ACL") was $47.0 million, or 1.02% of total loans, at March 31, 2023, compared to $45.2 million, or 0.99% of total loans, at December 31, 2022 and $41.8 million, or 1.12% of total loans, at March 31, 2022. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheets, amounted to $5.0 million at March 31, 2023 as compared to $4.9 million at December 31, 2022 and $3.8 million at March 31, 2022.

We believe that we are well positioned to withstand any downturn in the credit cycle should one materialize. We continue to closely monitor our loan portfolio for signs of deterioration. Management is focused on commercial real estate in light of speculation that commercial real estate values may deteriorate as the market adjusts to higher vacancies and rates. Our commercial real estate portfolio is centered in New England with approximately 75% in Massachusetts and Rhode Island. Approximately 60% of commercial real estate loans are fixed-rate loans with limited near-term maturity risk.

Management has also identified certain sectors within the commercial real estate segment that may be particularly susceptible to increased credit risk as a result of trends that were precipitated by the COVID-19 pandemic and may be exacerbated by current economic conditions. This includes business-oriented hotels, non-anchored retail space and metro office space. As of March 31, 2023, business-oriented hotels loans included 12 loans with a total outstanding balance of $85.3 million, non-anchored retail space loans included 28 loans with a total outstanding balance of $40.2 million, and metro office space loans included two loans with a total outstanding balance of $14.8 million. As of March 31, 2023, there was one business-oriented hotel credit with a carrying value of $1.9 million that was rated substandard and on nonaccrual. This credit was provided a principal deferral in the third quarter of 2022. The other loans in these groups were performing in accordance with their terms.

Balance Sheet

Total assets increased $213.3 million, or 4.0%, to $5.57 billion at March 31, 2023, from $5.36 billion at December 31, 2022. The increase primarily reflects an increase of $152.5 million in short-term investments and a $73.0 million increase in loans. The increase in short-term investments reflects management's pro-active liquidity-enhancing measures in response to financial industry concerns.

Available for sale securities were $303.1 million and $301.1 million at March 31, 2023 and December 31, 2022, respectively. The unrealized loss on securities available for sale decreased to $61.2 million as of March 31, 2023, as compared to $68.3 million of unrealized losses as of December 31, 2022. Securities held to maturity were $19.8 million, or 0.4% of total assets, with a fair value of $19.3 million.

Loans increased $73.0 million, or 1.6%, to $4.62 billion at March 31, 2023, from $4.55 billion at December 31, 2022. The increase in loans for the three months ended March 31, 2023 was primarily due to increases in commercial real estate loans of $36.4 million, commercial construction loans of $13.4 million, and residential real estate loans of $33.6 million, partially offset by decreases in commercial and industrial loans of $1.2 million and consumer loans of $9.2 million. Management continues to seek prudent commercial lending opportunities to deepen relationships with existing customers and develop new relationships with strong borrowers.

Total deposits were $4.24 billion at March 31, 2023 and $4.19 billion at December 31, 2022. Compared to the prior quarter, non-certificate accounts decreased $124.9 million, term certificate accounts increased $155.6 million, and brokered deposits increased $21.5 million. As of March 31, 2023, FDIC-insured deposits exceeded 70% of total deposits. Including Depositors Insurance Fund ("DIF") excess insurance coverage that remains available until February 24, 2024, insured deposits are approximately 100% of total deposits. The Bank exited the DIF as of February 24, 2023; however, insurance remains in place for funds on deposit as of that date for one year or until maturity for term certificates, if that is a later date.

FHLB borrowings increased $190.0 million to $590.7 million at March 31, 2023 from $400.7 million at December 31, 2022. At March 31, 2023, FHLB borrowings were primarily short-term borrowings as the Bank utilized available credit to enhance liquidity. As of March 31, 2023, the Bank had $677.6 million in available borrowing capacity across multiple relationships.

Total stockholders' equity was $599.8 million at March 31, 2023, compared to $617.0 million at December 31, 2022 and $649.1 million at March 31, 2022. Stockholders' equity decreased 2.8% when compared to the prior quarter, as earnings were offset by share repurchases. The Company repurchased 2,033,192 shares at an average price of $13.19, including $0.13 per share of excise tax, during the three months ended March 31, 2023. A share repurchase program that commenced in the first quarter of 2023 is expected to be completed in the second quarter of 2023. Due to recent market volatility and increased economic uncertainty, share repurchase activity is expected to be reduced in the second quarter of 2023 compared to recent prior quarters. The tangible-common-equity-to-tangible-assets ratio was 9.60% at March 31, 2023, 10.31% at December 31, 2022, and 12.75% at March 31, 2022. At March 31, 2023, the Company and the Bank had strong capital positions, exceeded all regulatory capital requirements, and are considered well-capitalized.

About HarborOne Bancorp, Inc.

HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered trust company. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 31 full-service branches located in Massachusetts and Rhode Island, and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. HarborOne 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 24 offices in Maine, Massachusetts, New Jersey, Rhode Island, and New Hampshire, and is licensed to lend in six 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. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. Such statements may be identified by words such as "believes," "will," "would," "expects," "project," "may," "could," "developments," "strategic," "launching," "opportunities," "anticipates," "estimates," "intends," "plans," "targets" and similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in general business and economic conditions (including inflation and concerns about inflation) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers' ability to service and repay the Company's loans; changes in customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company's business activities; changes in interest rates; increases in loan default and charge-off rates; decreases in the value of securities in the Company's investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; acquisitions may not produce results at levels or within time frames originally anticipated; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and future pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; demand for loans in the Company's market area; the Company's ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the SEC, which are available at the SEC's website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne's actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures

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

HarborOne Bancorp, Inc. Consolidated Balance Sheet Trend (Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
(in thousands)	2023			2022			2022			2022			2022

Assets

Cash and due from banks	$	38,989		$	39,712		$	39,910		$	35,843		$	41,862
Short-term investments		210,765			58,305			46,044			48,495			97,870
Total cash and cash equivalents		249,754			98,017			85,954			84,338			139,732

Securities available for sale, at fair value		303,059			301,149			304,852			334,398			361,529
Securities held to maturity, at amortized cost		19,838			19,949			15,000			10,000			—
Federal Home Loan Bank stock, at cost		23,589			20,071			15,973			5,625			5,931
Asset held for sale		—			—			—			—			678
Loans held for sale, at fair value		13,956			18,544			18,805			31,679			25,690
Loans:
Commercial real estate		2,286,727			2,250,344			2,041,905			1,847,619			1,816,484
Commercial construction		212,689			199,311			185,062			158,762			154,059
Commercial and industrial		423,036			424,275			397,112			407,182			410,787
Total commercial loans		2,922,452			2,873,930			2,624,079			2,413,563			2,381,330
Residential real estate		1,667,934			1,634,319			1,520,809			1,423,074			1,252,920
Consumer		32,246			41,421			52,466			75,312			103,100
Loans		4,622,632			4,549,670			4,197,354			3,911,949			3,737,350
Less: Allowance for credit losses on loans		(46,994	)		(45,236	)		(44,621	)		(43,560	)		(41,765	)
Net loans		4,575,638			4,504,434			4,152,733			3,868,389			3,695,585
Mortgage servicing rights, at fair value		47,080			48,138			49,861			47,130			45,043
Goodwill		69,802			69,802			69,802			69,802			69,802
Other intangible assets		2,082			2,272			2,461			2,695			2,930
Other assets		268,060			277,169			272,202			249,988			244,405
Total assets	$	5,572,858		$	5,359,545		$	4,987,643		$	4,704,044		$	4,591,325

Liabilities and Stockholders' Equity

Deposits:
Demand deposit accounts	$	726,548		$	762,576		$	795,945		$	775,154		$	771,172
NOW accounts		287,376			297,692			308,191			316,839			310,090
Regular savings and club accounts		1,455,318			1,468,172			1,289,825			1,282,913			1,218,656
Money market deposit accounts		796,008			861,704			889,517			885,673			864,316
Term certificate accounts		653,553			497,975			484,936			487,354			497,746
Brokered deposits		322,927			301,380			114,696			100,000			100,000
Total deposits		4,241,730			4,189,499			3,883,110			3,847,933			3,761,980
Short-term borrowed funds		425,000			385,000			330,000			90,000			—
Long-term borrowed funds		165,665			15,675			15,684			15,693			55,702
Subordinated debt		34,317			34,285			34,254			34,222			34,191
Other liabilities and accrued expenses		106,352			118,110			113,225			91,718			90,387
Total liabilities		4,973,064			4,742,569			4,376,273			4,079,566			3,942,260

Common stock		597			596			593			593			591
Additional paid-in capital		483,831			483,031			480,617			479,519			477,302
Unearned compensation - ESOP		(27,164	)		(27,623	)		(28,083	)		(28,542	)		(29,002	)
Retained earnings		360,454			356,438			350,049			339,471			332,734
Treasury stock		(175,514	)		(148,384	)		(143,125	)		(132,296	)		(113,513	)
Accumulated other comprehensive loss		(42,410	)		(47,082	)		(48,681	)		(34,267	)		(19,047	)
Total stockholders' equity		599,794			616,976			611,370			624,478			649,065

Total liabilities and stockholders' equity	$	5,572,858		$	5,359,545		$	4,987,643		$	4,704,044		$	4,591,325


HarborOne Bancorp, Inc. Consolidated Statements of Net Income - Trend (Unaudited)

	Quarters Ended
	March 31,			December 31,			September 30,		June 30,		March 31,
(in thousands, except share data)	2023			2022			2022		2022		2022

Interest and dividend income:
Interest and fees on loans	$	52,771		$	49,177		$	42,065	$	37,522	$	33,576
Interest on loans held for sale		286			334			377		331		264
Interest on securities		2,079			2,045			1,971		1,873		1,701
Other interest and dividend income		803			359			143		131		61
Total interest and dividend income		55,939			51,915			44,556		39,857		35,602

Interest expense:
Interest on deposits		15,913			8,499			3,491		2,019		1,621
Interest on FHLB borrowings		5,105			3,703			1,209		119		188
Interest on subordinated debentures		523			524			524		524		523
Total interest expense		21,541			12,726			5,224		2,662		2,332

Net interest and dividend income		34,398			39,189			39,332		37,195		33,270

Provision for credit losses		1,866			2,108			668		2,546		338

Net interest and dividend income, after provision for credit losses		32,532			37,081			38,664		34,649		32,932

Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans		2,224			2,301			3,809		4,538		5,322
Changes in mortgage servicing rights fair value		(1,692	)		(2,631	)		1,816		862		5,285
Other		2,216			2,325			2,453		2,612		2,558
Total mortgage banking income		2,748			1,995			8,078		8,012		13,165

Deposit account fees		4,733			5,031			4,870		4,892		4,472
Income on retirement plan annuities		119			118			119		112		107
Bank-owned life insurance income		500			501			503		494		483
Other income		590			2,255			675		593		834
Total noninterest income		8,690			9,900			14,245		14,103		19,061

Noninterest expenses:
Compensation and benefits		17,799			20,104			20,991		21,455		20,723
Occupancy and equipment		5,040			4,935			4,829		4,575		5,428
Data processing		2,346			2,359			2,311		2,259		2,241
Loan expense		313			169			355		385		478
Marketing		1,181			862			850		986		1,218
Professional fees		1,501			1,446			1,457		1,680		1,539
Deposit insurance		510			385			357		354		349
Other expenses		2,819			4,384			3,323		3,260		2,859
Total noninterest expenses		31,509			34,644			34,473		34,954		34,835

Income before income taxes		9,713			12,337			18,436		13,798		17,158

Income tax provision		2,416			2,760			4,678		3,811		4,891

Net income	$	7,297		$	9,577		$	13,758	$	9,987	$	12,267

Earnings per common share:
Basic	$	0.16		$	0.21		$	0.30	$	0.21	$	0.26
Diluted	$	0.16		$	0.21		$	0.30	$	0.21	$	0.25
Weighted average shares outstanding:
Basic		44,857,224			45,321,491			45,830,737		46,980,830		47,836,410
Diluted		45,284,240			45,861,658			46,420,527		47,536,033		48,690,420


HarborOne Bancorp, Inc. Average Balances / Yields (Unaudited)

	Quarters Ended
	March 31, 2023							December 31, 2022							March 31, 2022
	Average							Average							Average
	Outstanding					Yield/		Outstanding					Yield/		Outstanding					Yield/
	Balance			Interest		Cost ⁽⁷⁾		Balance			Interest		Cost ⁽⁷⁾		Balance			Interest		Cost ⁽⁷⁾
	(dollars in thousands)
Interest-earning assets:
Investment securities ⁽¹⁾	$	387,303		$	2,079	2.18	%	$	388,247		$	2,045	2.09	%	$	393,364		$	1,701	1.75	%
Other interest-earning assets		63,426			803	5.13			42,640			359	3.34			150,569			61	0.16
Loans held for sale		18,108			286	6.41			22,350			334	5.93			29,842			264	3.59
Loans
Commercial loans⁽²⁾⁽³⁾		2,901,464			36,837	5.15			2,770,667			34,351	4.92			2,291,343			22,095	3.91
Residential real estate loans⁽³⁾		1,647,109			15,616	3.85			1,566,389			14,352	3.64			1,220,703			10,142	3.37
Consumer loans ⁽³⁾		36,310			519	5.80			45,629			632	5.50			118,242			1,339	4.59
Total loans		4,584,883			52,972	4.69			4,382,685			49,335	4.47			3,630,288			33,576	3.75
Total interest-earning assets		5,053,720			56,140	4.51			4,835,922			52,073	4.27			4,204,063			35,602	3.43
Noninterest-earning assets		313,309							311,372							326,811
Total assets	$	5,367,029						$	5,147,294						$	4,530,874
Interest-bearing liabilities:
Savings accounts	$	1,459,392			5,445	1.51		$	1,408,493			3,591	1.01		$	1,165,683			366	0.13
NOW accounts		275,801			36	0.05			291,890			40	0.05			301,279			36	0.05
Money market accounts		824,694			5,238	2.58			878,609			3,312	1.50			858,792			303	0.14
Certificates of deposit		552,636			2,685	1.97			487,121			1,062	0.86			522,211			729	0.57
Brokered deposits		330,426			2,509	3.08			148,460			494	1.32			100,000			187	0.76
Total interest-bearing deposits		3,442,949			15,913	1.87			3,214,573			8,499	1.05			2,947,965			1,621	0.22
FHLB advances		448,096			5,105	4.62			392,508			3,703	3.74			55,706			188	1.37
Subordinated debentures		34,298			523	6.18			34,268			524	6.07			34,173			523	6.21
Total borrowings		482,394			5,628	4.73			426,776			4,227	3.93			89,879			711	3.21
Total interest-bearing liabilities		3,925,343			21,541	2.23			3,641,349			12,726	1.39			3,037,844			2,332	0.31
Noninterest-bearing liabilities:
Noninterest-bearing deposits		721,536							788,572							738,578
Other noninterest-bearing liabilities		101,820							101,621							86,763
Total liabilities		4,748,699							4,531,542							3,863,185
Total stockholders' equity		618,330							615,752							667,689
Total liabilities and stockholders' equity	$	5,367,029						$	5,147,294						$	4,530,874
Tax equivalent net interest income					34,599							39,347							33,270
Tax equivalent interest rate spread⁽⁴⁾						2.28	%						2.88	%						3.12	%
Less: tax equivalent adjustment					201							158							—
Net interest income as reported				$	34,398						$	39,189						$	33,270
Net interest-earning assets ⁽⁵⁾	$	1,128,377						$	1,194,573						$	1,166,219
Net interest margin⁽⁶⁾						2.76	%						3.22	%						3.21	%
Tax equivalent effect						0.02							0.01							—
Net interest margin on a fully tax equivalent basis						2.78	%						3.23	%						3.21	%
Ratio of interest-earning assets to interest-bearing liabilities		128.75	%						132.81	%						138.39	%

Supplemental information:
Total deposits, including demand deposits	$	4,164,485		$	15,913			$	4,003,145		$	8,499			$	3,686,543		$	1,621
Cost of total deposits						1.55	%						0.84	%						0.18	%
Total funding liabilities, including demand deposits	$	4,646,879		$	21,541			$	4,429,921		$	12,726			$	3,776,422		$	2,332
Cost of total funding liabilities						1.88	%						1.14	%						0.25	%


⁽¹⁾ Includes securities available for sale and securities held to maturity.
⁽²⁾Includes industrial revenue bonds for the quarters ended March 31, 2023 and December 31, 2022. Interest income from tax exempt loans is computed on a taxable equivalent basis using a rate of 21% for the quarters presented. The yield on commercial loans before tax equivalent adjustment at March 31, 2023 and December 31, 2022 was 5.12% and 4.90%, respectively.
⁽³⁾ Includes nonaccruing loan balances and interest received on such loans.
⁽⁴⁾ Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
⁽⁵⁾ Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
⁽⁶⁾ Net interest margin represents net interest income divided by average total interest-earning assets.
⁽⁷⁾Annualized.


HarborOne Bancorp, Inc. Average Balances and Yield Trend (Unaudited)

	Average Balances - Trend - Quarters Ended
	March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022		March 31, 2022
	(in thousands)

Interest-earning assets:
Investment securities ⁽¹⁾	$	387,303	$	388,247	$	390,577	$	391,448	$	393,364
Other interest-earning assets		63,426		42,640		27,723		64,678		150,569
Loans held for sale		18,108		22,350		28,046		29,474		29,842
Loans
Commercial loans ⁽²⁾⁽³⁾		2,901,464		2,770,667		2,522,359		2,384,630		2,291,343
Residential real estate loans ⁽³⁾		1,647,109		1,566,389		1,470,305		1,330,772		1,220,703
Consumer loans ⁽³⁾		36,310		45,629		63,220		88,943		118,242
Total loans		4,584,883		4,382,685		4,055,884		3,804,345		3,630,288
Total interest-earning assets		5,053,720		4,835,922		4,502,230		4,289,945		4,204,063
Noninterest-earning assets		313,309		311,372		308,734		311,998		326,811
Total assets	$	5,367,029	$	5,147,294	$	4,810,964	$	4,601,943	$	4,530,874
Interest-bearing liabilities:
Savings accounts	$	1,459,392	$	1,408,493	$	1,293,598	$	1,266,912	$	1,165,683
NOW accounts		275,801		291,890		305,777		311,241		301,279
Money market accounts		824,694		878,609		893,452		885,305		858,792
Certificates of deposit		552,636		487,121		486,923		484,484		522,211
Brokered deposits		330,426		148,460		102,875		100,000		100,000
Total interest-bearing deposits		3,442,949		3,214,573		3,082,625		3,047,942		2,947,965
FHLB advances		448,096		392,508		196,036		34,763		55,706
Subordinated debentures		34,298		34,268		34,237		34,207		34,173
Total borrowings		482,394		426,776		230,273		68,970		89,879
Total interest-bearing liabilities		3,925,343		3,641,349		3,312,898		3,116,912		3,037,844
Noninterest-bearing liabilities:
Noninterest-bearing deposits		721,536		788,572		789,214		768,088		738,578
Other noninterest-bearing liabilities		101,820		101,621		80,304		75,186		86,763
Total liabilities		4,748,699		4,531,542		4,182,416		3,960,186		3,863,185
Total stockholders' equity		618,330		615,752		628,548		641,757		667,689
Total liabilities and stockholders' equity	$	5,367,029	$	5,147,294	$	4,810,964	$	4,601,943	$	4,530,874

	Annualized Yield Trend - Quarters Ended
	March 31, 2023		December 31, 2022		September 30, 2022		June 30, 2022		March 31, 2022

Interest-earning assets:
Investment securities ⁽¹⁾

HarborOne Bancorp, Inc. Announces 2023 First Quarter Earnings