BROCKTON, Mass.--(BUSINESS WIRE)--

HarborOne Bancorp, Inc. (the “Company”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced third quarter 2017 net income of $2.8 million, or $0.09 per share, as compared to $3.2 million, or $0.10 per share, for the prior quarter and net income of $3.6 million, or $0.11 per share, for the same quarter last year.

The Company reported net income of $8.8 million, or $0.28 per share, for the nine months ended September 30, 2017 compared to net income of $3.0 million for the same period in 2016. The Company’s year-to-date results for 2016 included a one-time contribution of $4.8 million to The HarborOne Foundation; excluding this non-recurring expense, net income would have been $5.9 million.

James W. Blake, President and CEO stated, “We continue to capitalize on our commercial loan growth strategy. Despite a very competitive market, we increased our commercial real estate loans 26% and commercial loans 11% since year end which continues to improve our year-to-date margins.”

Net Interest Income

The Company’s net interest and dividend income was $19.3 million for the quarter ended September 30, 2017, up $1.1 million, or 5.8%, from $18.2 million for the quarter ended June 30, 2017 and up $3.4 million, or 21.2%, from $15.9 million for the quarter ended September 30, 2016. The interest rate spread and net interest margin on a tax-equivalent basis were 2.91% and 3.07%, respectively, for the quarter ended September 30, 2017 compared to 2.87% and 3.03%, respectively, for the quarter ended June 30, 2017 and 2.78% and 2.93%, respectively, for the quarter ended September 30, 2016.

The increase in net interest income from the previous quarter reflects a $1.5 million, or 6.9%, increase in total interest and dividend income and an increase of $448,000, or 12.1% in total interest expense. The increase in interest and dividend income is primarily due to a $680,000 prepayment penalty and commercial loan growth that provided an increase in average outstanding loans of $61.0 million. The yield on loans increased to 3.95% for the quarter ended September 30, 2017 from 3.82% for the quarter ended June 30, 2017. The increase in interest expense is due to an increase in average interest-bearing deposits of $40.4 million with a 4 basis point increase in the cost of those funds and an increase in average FHLB advances of $33.0 million offset by a 6 basis point decrease in total cost of borrowed funds.

The increase in net interest income over the prior year quarter is primarily due to growth in the Company’s average loan balances to $2.19 billion from $1.98 billion and an increase in the yield on loans to 3.95% from 3.61%, again primarily driven by commercial loan growth as well as higher rates on variable rate loans and the prepayment penalty. Total interest and dividend income increased $4.3 million, or 22.2%, and total interest expense increased $885,000, or 27.1%.

Noninterest Income

Noninterest income increased to $14.6 million for the quarter ended September 30, 2017, up $328,000, or 2.3%, from the quarter ended June 30, 2017. The increase is primarily due to changes in the mortgage servicing rights fair value adjustments, which largely reflect fluctuations in the 10-year Constant Maturity Treasury rate and residential real estate mortgage loan rates. Changes in the mortgage servicing rights fair value adjustments amounted to a $488,000 decrease in the third quarter of 2017 compared to a $1.1 million decrease in the second quarter of 2017 and a $351,000 increase in the third quarter of 2016. Noninterest income decreased $6.2 million, or 29.9%, as compared to the quarter ended September 30, 2016, primarily driven by a decrease of $6.3 million, or 37.2%, in mortgage banking income. Compared to the same quarter prior year, mortgage originations by Merrimack Mortgage Company, LLC decreased 29.7% in 2017 primarily as a result of higher residential mortgage interest rates and reduced refinance volume in 2017.

Noninterest Expense

Noninterest expenses were $28.4 million for the quarter ended September 30, 2017, an increase of $1.6 million, or 5.8%, from the quarter ended June 30, 2017. The increase was primarily due to the increase in compensation and benefits of $1.0 million or 6.2%, in equity awards expense relating to awards given in the current quarter that will be expensed over three years, and an increase in commissions consistent with the increase in mortgage originations from the second to third quarter of 2017. Noninterest expenses decreased $1.2 million, or 4.0%, from the quarter ended September 30, 2016 primarily due to a decrease in mortgage loan originations which contributed to a decrease in compensation and benefits of $1.5 million and a decrease of $1.4 million in loan expense. The decreases were offset by increases in occupancy expense of $493,000, marketing expense of $544,000 and professional fees expense of $417,000.

Asset Quality

The Company recorded a provision for loan losses of $921,000 for the quarter ended September 30, 2017, $470,000 for the quarter ended June 30, 2017 and $1.7 million for the quarter ended September 30, 2016. The provisions for the third quarter of 2017 were due to commercial loan growth and an additional specific reserve of $375,000 on a substandard commercial loan. Second quarter provisions were a result of commercial loan growth. The provisions for the third quarter 2016 reflected commercial loan growth as well as an increase in net charge-offs in the quarter ended and the establishment of a $360,000 specific reserve for a substandard commercial loan. In the first quarter of 2017, the Company adjusted general reserve allocations for commercial real estate and commercial loans based on updated peer data. The updated peer data resulted in lower general reserve rates on these loan types; however, this decrease was partially offset by commercial loan growth. 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 allowance for loan losses was $17.9 million, or 0.84%, of total loans at September 30, 2017, compared to $17.2 million, or 0.82%, of total loans, at June 30, 2017 and $15.8 million, or 0.82%, of total loans at September 30, 2016. Net charge-offs totaled $169,000 for the quarter ended September 30, 2017, or 0.03%, of average loans outstanding on an annualized basis, compared to $173,000, or 0.03%, for the quarter ended June 30, 2017 and $317,000, or 0.07%, for the quarter ended September 30, 2016.

Nonperforming assets were $20.6 million at September 30, 2017 compared to $22.5 million at June 30, 2017 and $26.0 million at September 30, 2016. Nonperforming assets as a percentage of total assets were 0.78% at September 30, 2017, 0.86% at June 30, 2017 and 1.11% at September 30, 2016. The steady decline reflects the Company’s continued efforts to minimize nonperforming assets through diligent collection efforts, prudent workout arrangements and strong underwriting.

Balance Sheet

Total assets increased $27.4 million, or 1.0%, to $2.66 billion at September 30, 2017 from $2.63 billion at June 30, 2017. Net loans increased $25.1 million, or 1.2%, to $2.10 billion at September 30, 2017 from $2.08 billion at June 30, 2017. The net increase in loans for the three months ended September 30, 2017 was primarily due to increases of $30.7 million in commercial real estate loans and $9.8 million in construction loans partially offset by a decrease of $1.7 million in residential real estate loans, $2.6 million in commercial and industrial loans, and $9.7 million in consumer loans. Loans held for sale increased $4.4 million, or 4.7%, to $96.2 million at September 30, 2017 from $91.9 million at June 30, 2017 due to the seasonal increase in residential mortgage originations.

Total deposits increased $9.8 million, or 0.5%, to $2.00 billion at September 30, 2017 from $1.99 billion at June 30, 2017. Compared to the prior quarter non-certificate accounts increased $31.0 million, brokered deposits decreased $19.7 million and term certificate accounts decreased $1.6 million. The increase in non-certificate accounts was primarily due to an increase in money market accounts. Borrowings were $276.4 million at September 30, 2017 and $265.1 million at June 30, 2017.

Total stockholders’ equity was $340.6 million at September 30, 2017 compared to $336.6 million at June 30, 2017 and $327.9 million at September 30, 2016. The tangible common equity to tangible assets ratio was 12.36% at September 30, 2017, 12.34% at June 30, 2017 and 13.47% at September 30, 2016. At September 30, 2017, the Company and the Bank exceed all regulatory capital requirements.

About HarborOne Bancorp, Inc.

HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, the largest co-operative bank in New England. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Southeastern Massachusetts through a network of 14 full-service branches, two limited service branches, a commercial loan office in Providence, Rhode Island, a residential lending office in Westford, Massachusetts, and 13 free-standing ATMs. The Bank also provides a range of educational services through “HarborOne U,” with classes on small business, financial literacy and personal enrichment at two campuses located adjacent to our Brockton and Mansfield locations. Merrimack Mortgage Company, LLC, a subsidiary of HarborOne Bank, is a full-service mortgage lender with 33 offices in Massachusetts, New Hampshire and Maine, and also does business in seven additional states.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in the value of securities in the Company’s investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne Bancorp, Inc.’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The Company’s management believes that the supplemental non-GAAP information, which consists of 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.

HarborOne Bancorp, Inc. Consolidated Balance Sheet Trend (Unaudited)
				September 30,						June 30,						March 31,						December 31,						September 30,
(Dollars in thousands)				2017						2017						2017						2016						2016
Assets
Cash and due from banks				$	15,393					$	17,492					$	18,621					$	16,464					$	15,706
Short-term investments					79,412						84,105						83,778						33,751						3,549
Total cash and cash equivalents					94,805						101,597						102,399						50,215						19,255
Securities available for sale, at fair value					166,122						160,795						165,348						136,469						115,397
Securities held to maturity, at amortized cost					47,752						45,660						46,531						47,877						49,213
Federal Home Loan Bank stock, at cost					16,356						16,356						17,863						15,749						15,255
Loans held for sale, at fair value					96,201						91,849						51,932						86,443						114,054
Loans:
Residential real estate					769,418						771,121						765,368						770,935						774,404
Commercial real estate					623,054						592,325						557,174						495,801						450,945
Construction					76,668						66,908						69,134						58,443						40,438
Total mortgage loans on real estate					1,469,140						1,430,354						1,391,676						1,325,179						1,265,787
Commercial					111,627						114,234						111,849						100,501						88,718
Consumer					533,707						543,394						551,603						563,104						555,874
Loans					2,114,474						2,087,982						2,055,128						1,988,784						1,910,379
Less: Allowance for loan losses					(17,933	)					(17,181	)					(16,884	)					(16,968	)					(15,832	)
Net deferred loan costs					8,035						8,682						9,041						9,931						10,336
Net loans					2,104,576						2,079,483						2,047,285						1,981,747						1,904,883
Mortgage servicing rights, at fair value					20,376						20,313						20,839						20,333						15,534
Goodwill and other intangible assets					13,519						13,541						13,563						13,585						13,607
Other assets					99,752						102,476						100,384						95,892						99,935
Total assets				$	2,659,459					$	2,632,070					$	2,566,144					$	2,448,310					$	2,347,133
Liabilities and Stockholders' Equity
Deposits:
NOW and demand deposit accounts				$	395,728					$	395,150					$	392,012					$	365,869					$	358,628
Regular savings and club accounts					404,465						398,883						338,338						316,947						317,198
Money market deposit accounts					666,613						641,776						646,123						595,211						596,377
Brokered deposits					73,127						92,803						77,774						54,045						20,236
Term certificate accounts					463,612						465,179						470,490						472,681						442,472
Total deposits					2,003,545						1,993,791						1,924,737						1,804,753						1,734,911
Short-term borrowed funds					10,000						30,000						75,000						80,000						50,000
Long-term borrowed funds					266,366						235,117						200,118						195,119						195,120
Other liabilities and accrued expenses					38,947						36,527						33,554						39,054						39,188
Total liabilities					2,318,858						2,295,435						2,233,409						2,118,926						2,019,219
Common stock					327						321						321						321						321
Additional paid-in capital					145,525						144,705						144,555						144,420						144,175
Unearned compensation - ESOP					(10,833	)					(10,982	)					(11,130	)					(11,278	)					(11,575	)
Retained earnings					205,997						203,159						199,946						197,211						194,275
Accumulated other comprehensive income (loss)					(415	)					(568	)					(957	)					(1,290	)					718
Total stockholders' equity					340,601						336,635						332,735						329,384						327,914
Total liabilities and stockholders' equity				$	2,659,459					$	2,632,070					$	2,566,144					$	2,448,310					$	2,347,133

HarborOne Bancorp, Inc. Consolidated Statements of Net Income - Trend (Unaudited)
				Quarters Ended
				September 30,						June 30,						March 31,						December 31,					September 30,
(Dollars in thousands, except per share amounts)				2017						2017						2017						2016					2016
Interest and dividend income:
Interest and fees on loans				$	20,990					$	19,640					$	19,135					$	18,092				$	17,144
Interest on loans held for sale					796						620						546						788					866
Interest on securities					1,334						1,332						1,216						1,002					988
Other interest and dividend income					294						320						252						167					164
Total interest and dividend income					23,414						21,912						21,149						20,049					19,162
Interest expense:
Interest on deposits					2,812						2,567						2,432						2,283					2,092
Interest on borrowed funds					1,333						1,130						1,285						1,211					1,168
Total interest expense					4,145						3,697						3,717						3,494					3,260
Net interest and dividend income					19,269						18,215						17,432						16,555					15,902
Provision for loan losses					921						470						265						1,456					1,710
Net interest income, after provision for loan losses					18,348						17,745						17,167						15,099					14,192
Noninterest income:
Mortgage banking income:
Changes in mortgage servicing rights fair value					(488	)					(1,052	)					(442	)					2,970					351
Other					11,071						11,200						7,846						12,404					16,513
Total mortgage banking income					10,583						10,148						7,404						15,374					16,864
Deposit account fees					3,172						3,071						2,845						2,979					3,010
Income on retirement plan annuities					114						113						110						111					111
Gain on sale of consumer loans					—						—						78						—					—
Bank-owned life insurance income					260						261						257						263					275
Other income					498						706						760						557					609
Total noninterest income					14,627						14,299						11,454						19,284					20,869
Noninterest expenses:
Compensation and benefits					17,325						16,319						14,924						18,521					18,812
Occupancy and equipment					2,951						2,724						2,986						2,516					2,458
Data processing					1,547						1,528						1,522						1,557					1,450
Loan expense					1,884						1,882						1,363						2,710					3,316
Marketing					1,136						1,041						482						835					592
Professional fees					1,126						1,080						930						822					709
Deposit insurance					397						446						462						208					437
Other expenses					2,072						1,858						1,736						2,194					1,835
Total noninterest expenses					28,438						26,878						24,405						29,363					29,609
Income before income taxes					4,537						5,166						4,216						5,020					5,452
Income tax provision					1,699						1,953						1,481						2,084					1,900
Net income				$	2,838					$	3,213					$	2,735					$	2,936				$	3,552
Earnings per common share:
Basic				$	0.09					$	0.10					$	0.09					$	0.09				$	0.11
Diluted				$	0.09					$	0.10					$	0.09					$	0.09				$	0.11
Weighted average shares outstanding:
Basic					31,303,281						31,013,002						30,998,163						30,973,588					30,943,808
Diluted					31,303,281						31,013,002						30,998,163						30,973,588					30,943,808

HarborOne Bancorp, Inc. Consolidated Statements of Net Income (Unaudited)
				Nine Months Ended September 30,
(Dollars in thousands, except per share amounts)				2017						2016						$ Change						% Change
Interest and dividend income:
Interest and fees on loans				$	59,765					$	49,080					$	10,685					21.8		%
Interest on loans held for sale					1,962						1,907						55					2.9
Interest on securities					3,882						3,110						772					24.8
Other interest and dividend income					866						610						256					42.0
Total interest and dividend income					66,475						54,707						11,768					21.5
Interest expense:
Interest on deposits					7,811						6,427						1,384					21.5
Interest on borrowed funds					3,748						3,840						(92	)				(2.4	)
Total interest expense					11,559						10,267						1,292					12.6
Net interest and dividend income					54,916						44,440						10,476					23.6
Provision for loan losses					1,656						2,716						(1,060	)				(39.0	)
Net interest income, after provision for loan losses					53,260						41,724						11,536					27.6
Noninterest income:
Mortgage banking income:
Changes in mortgage servicing rights fair value					(1,982	)					(4,100	)					2,118					51.7
Other					30,117						39,725						(9,608	)				(24.2	)
Total mortgage banking income					28,135						35,625						(7,490	)				(21.0	)
Deposit account fees					9,088						8,685						403					4.6
Income on retirement plan annuities					337						325						12					3.7
Gain on sale of consumer loans					78						79						(1	)				(1.3	)
Gain on sale and call of securities, net					—						283						(283	)				(100.0	)
Bank-owned life insurance income					778						825						(47	)				(5.7	)
Other income					1,964						1,997						(33	)				(1.7	)
Total noninterest income					40,380						47,819						(7,439	)				(15.6	)
Noninterest expenses:
Compensation and benefits					48,568						50,552						(1,984	)				(3.9	)
Occupancy and equipment					8,661						7,705						956					12.4
Data processing					4,597						4,310						287					6.7
Loan expense					5,129						7,036						(1,907	)				(27.1	)
Marketing					2,659						1,764						895					50.7
Professional fees					3,136						1,888						1,248					66.1
Deposit insurance					1,305						1,258						47					3.7
Prepayment penalties on Federal Home Loan Bank					—						400						(400	)				(100.0	)
Charitable foundation contributions					—						4,820						(4,820	)				(100.0	)
Other expenses					5,666						5,602						64					1.1
Total noninterest expenses					79,721						85,335						(5,614	)				(6.6	)
Income before income taxes					13,919						4,208						9,711					230.8
Income tax provision					5,133						1,213						3,920					323.2
Net income				$	8,786					$	2,995					$	5,791					193.4		%
Earnings per common share:
Basic				$	0.28						N/A						N/A
Diluted				$	0.28						N/A						N/A
Weighted average shares outstanding:
Basic					31,109,104						N/A						N/A
Diluted					31,109,104						N/A						N/A

HarborOne Bancorp, Inc. Average Balances / Yields (Unaudited)
				Quarters Ended
				September 30, 2017														June 30, 2017														September 30, 2016
				Average														Average														Average
				Outstanding										Yield/				Outstanding										Yield/				Outstanding										Yield/
				Balance					Interest					Cost (6)				Balance					Interest					Cost (6)				Balance					Interest					Cost (6)
				(Dollars in thousands)
Interest-earning assets:
Loans (1)				$	2,190,303				$	21,786				3.95			%	$	2,129,280				$	20,260				3.82			%	$	1,983,249				$	18,010				3.61	%
Investment securities (2)					206,761					1,409				2.70					209,691					1,408				2.69					166,816					1,065				2.54
Other interest-earning assets					102,589					294				1.14					81,370					320				1.58					18,030					164				3.62
Total interest-earning assets					2,499,653					23,489				3.73					2,420,341					21,988				3.64					2,168,095					19,239				3.53
Noninterest-earning assets					128,966														129,281														130,498
Total assets				$	2,628,619													$	2,549,622													$	2,298,593
Interest-bearing liabilities:
Savings accounts				$	402,470					195				0.19				$	351,948					151				0.17				$	319,202					139				0.17
NOW accounts					125,636					20				0.06					128,794					20				0.06					120,704					19				0.06
Money market accounts					646,873					970				0.59					654,127					821				0.50					612,761					685				0.44
Certificates of deposit					463,077					1,382				1.18					469,249					1,369				1.17					434,519					1,246				1.14
Brokered deposit					82,976					245				1.17					76,555					206				1.08					549					3				2.17
Total interest-bearing deposits					1,721,032					2,812				0.65					1,680,673					2,567				0.61					1,487,735					2,092				0.56
FHLB advances					287,858					1,333				1.84					254,832					1,130				1.78					232,587					1,168				2.00
Total interest-bearing liabilities					2,008,890					4,145				0.82					1,935,505					3,697				0.77					1,720,322					3,260				0.75
Noninterest-bearing liabilities:
Noninterest-bearing deposits					251,579														250,654														217,930
Other noninterest-bearing liabilities					30,815														29,432														32,888
Total liabilities					2,291,284														2,215,591														1,971,140
Total equity					337,335														334,031														327,453
Total liabilities and equity				$	2,628,619													$	2,549,622													$	2,298,593
Tax equivalent net interest income										19,344														18,291														15,979
Tax equivalent interest rate spread (3)														2.91			%											2.87			%											2.78	%
Less: tax equivalent adjustment										75														76														77
Net interest income as reported									$	19,269													$	18,215													$	15,902
Net interest-earning assets (4)				$	490,763													$	484,836													$	447,773
Net interest margin (5)														3.06			%											3.02			%											2.92	%
Tax equivalent effect														0.01														0.01														0.01
Net interest margin on a fully tax equivalent basis														3.07			%											3.03			%											2.93	%
Average interest-earning assets to average interest-bearing liabilities					124.43			%											125.05			%											126.03			%

⁽¹⁾ Includes loans held for sale, nonaccruing loan balances and interest received on such loans.

⁽²⁾ Includes securities available for sale and securities held to maturity. Interest income from tax exempt securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented. The yield on investments before tax equivalent adjustments for the quarters presented were 2.56%, 2.55%, and 2.36%, respectively.

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

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

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

⁽⁶⁾ Annualized

HarborOne Bancorp, Inc. Average Balances / Yields (Unaudited)
				Year to Date
				September 30, 2017														September 30, 2016
				Average														Average
				Outstanding										Yield/				Outstanding										Yield/
				Balance					Interest					Cost (6)				Balance					Interest					Cost (6)
				(Dollars in thousands)
Interest-earning assets:
Loans (1)				$	2,144,071				$	61,727				3.85			%	$	1,889,578				$	50,987				3.60	%
Investment securities (2)					204,693					4,109				2.68					174,692					3,344				2.56
Other interest-earning assets					79,354					866				1.46					48,977					610				1.65
Total interest-earning assets					2,428,118					66,702				3.67					2,113,247					54,941				3.47
Noninterest-earning assets					132,054														127,996
Total assets				$	2,560,172													$	2,241,243
Interest-bearing liabilities:
Savings accounts				$	360,660					497				0.18				$	312,672					407				0.17
NOW accounts					125,902					59				0.06					119,495					56				0.06
Money market accounts					642,764					2,544				0.53					628,669					2,112				0.45
Certificates of deposit					467,342					4,101				1.17					446,624					3,849				1.15
Brokered deposit					75,140					610				1.08					184					3				2.18
Total interest-bearing deposits					1,671,808					7,811				0.62					1,507,644					6,427				0.57
FHLB advances					278,181					3,748				1.80					245,693					3,840				2.09
Total interest-bearing liabilities					1,949,989					11,559				0.79					1,753,337					10,267				0.78
Noninterest-bearing liabilities:
Noninterest-bearing deposits					246,512														218,960
Other noninterest-bearing liabilities					29,750														29,451
Total liabilities					2,226,251														2,001,748
Total equity					333,921														239,495
Total liabilities and equity				$	2,560,172													$	2,241,243
Tax equivalent net interest income										55,143														44,674
Tax equivalent interest rate spread (3)														2.88			%											2.69	%
Less: tax equivalent adjustment										227														234
Net interest income as reported									$	54,916													$	44,440
Net interest-earning assets (4)				$	478,129													$	359,910
Net interest margin (5)														3.02			%											2.81	%
Tax equivalent effect														0.02														0.01
Net interest margin on a fully tax equivalent basis														3.04			%											2.82	%
Average interest-earning assets to average interest-bearing liabilities					124.52			%											120.53			%

⁽¹⁾ Includes loans held for sale, nonaccruing loan balances and interest received on such loans.

⁽²⁾ Includes securities available for sale and securities held to maturity. Interest income from tax exempt securities is computed on a taxable equivalent basis using a tax rate of 35% for all periods presented. The yield on investments before tax equivalent adjustments was 2.54% and 2.38% for the nine months ended September 30, 2017 and 2016, respectively.

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

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

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

⁽⁶⁾ Annualized

HarborOne Bancorp, Inc. Average Balances and Yield Trend (Unaudited)
				Average Balances - Trend - Quarters Ended
				September 30, 2017					June 30, 2017					March 31, 2017					December 31, 2016					September 30, 2016
				(In thousands)
Interest-earning assets:
Loans (1)				$	2,190,303				$	2,129,280				$	2,111,768				$	2,055,444				$	1,983,249
Investment securities (2)					206,761					209,691					197,525					168,485					166,816
Other interest-earning assets					102,589					81,370					67,428					38,912					18,030
Total interest-earning assets					2,499,653					2,420,341					2,376,721					2,262,841					2,168,095
Noninterest-earning assets					128,966					129,281					124,148					126,899					130,498
Total assets				$	2,628,619				$	2,549,622				$	2,500,869				$	2,389,740				$	2,298,593
Interest-bearing liabilities:
Savings accounts				$	402,470				$	351,948				$	326,731				$	319,166				$	319,202
NOW accounts					125,636					128,794					123,340					124,134					120,704
Money market accounts					646,873					654,127					627,073					602,263					612,761
Certificates of deposit					463,077					469,249					469,774					458,491					434,519
Brokered deposit					82,976					76,555					65,698					39,689					549
Total interest-bearing deposits					1,721,032					1,680,673					1,612,616					1,543,743					1,487,735
FHLB advances					287,858					254,832					291,896					257,568					232,587
Total interest-bearing liabilities					2,008,890					1,935,505					1,904,512					1,801,311					1,720,322
Noninterest-bearing liabilities:
Noninterest-bearing deposits					251,579					250,654					237,056					227,918					217,930
Other noninterest-bearing liabilities					30,815					29,432					28,981					31,055					32,888
Total liabilities					2,291,284					2,215,591					2,170,549					2,060,284					1,971,140
Total equity					337,335					334,031					330,320					329,456					327,453
Total liabilities and equity				$	2,628,619				$	2,549,622				$	2,500,869				$	2,389,740				$	2,298,593
				Annualized Yield Trend - Quarters Ended
				September 30, 2017					June 30, 2017					March 31, 2017					December 31, 2016					September 30, 2016
Interest-earning assets:
Loans (1)					3.95			%		3.82			%		3.78			%		3.65			%		3.61	%
Investment securities (2)					2.70			%		2.69			%		2.65			%		2.55			%		2.54	%
Other interest-earning assets					1.14			%		1.58			%		1.52			%		1.71			%		3.62	%
Total interest-earning assets					3.73			%		3.64			%		3.62			%		3.54			%		3.53	%
Interest-bearing liabilities:
Savings accounts					0.19			%		0.17			%		0.19			%		0.18			%		0.17	%
NOW accounts					0.06			%		0.06			%		0.06			%		0.06			%		0.06	%
Money market accounts					0.59			%		0.50			%		0.49			%		0.46			%		0.44	%
Certificates of deposit					1.18			%		1.17			%		1.17			%		1.16			%		1.14	%
Brokered deposit					1.17			%		1.08			%		0.98			%		0.92			%		2.17	%
Total interest-bearing deposits					0.65			%		0.61			%		0.61			%		0.59			%		0.56	%
FHLB advances					1.84			%		1.78			%		1.79			%		1.87			%		2.00	%
Total interest-bearing liabilities					0.82			%		0.77			%		0.79			%		0.77			%		0.75	%

⁽¹⁾ Includes loans held for sale, nonaccruing loan balances and interest received on such loans.

⁽²⁾ Includes securities available for sale and securities held to maturity.

HarborOne Bancorp, Inc. Selected Financial Highlights (Unaudited)
				Quarters Ended
				September 30,					June 30,					March 31,					December 31,					September 30,
Performance Ratios (annualized):				2017					2017					2017					2016					2016
Return (loss) on average assets (ROAA)					0.43			%		0.50			%		0.44			%		0.49			%		0.62	%
Return (loss) on average equity (ROAE)					3.37			%		3.85			%		3.31			%		3.56			%		4.34	%
Efficiency ratio (1)					83.83			%		82.60			%		84.41			%		81.87			%		80.46	%

⁽¹⁾ This non-GAAP measure represents noninterest expense divided by the sum of net interest income and noninterest income

				At or for the Quarters Ended
				September 30,					June 30,					March 31,					December 31,					September 30,
Asset Quality				2017					2017					2017					2016					2016
(Dollars in thousands)
Total nonperforming assets				$	20,627				$	22,522				$	23,471				$	22,946				$	25,992
Nonperforming assets to total assets					0.78			%		0.86			%		0.91			%		0.94			%		1.11	%
Allowance for loan losses to total loans					0.84			%		0.82			%		0.82			%		0.85			%		0.82	%
Net charge offs				$	169				$	173				$	349				$	320				$	317
Annualized net charge offs/average loans					0.03			%		0.03			%		0.07			%		0.06			%		0.07	%
Allowance for loan losses to nonperforming loans					91.47			%		80.04			%		78.17			%		80.12			%		65.92	%

				September 30,					June 30,					March 31,					December 31,					September 30,
Capital and Share Related				2017					2017					2017					2016					2016
Common stock outstanding					32,662,295					32,120,880					32,120,880					32,120,880					32,120,880
Book value per share				$	10.43				$	10.48				$	10.36				$	10.25				$	10.21
Tangible book value per share (1)				$	10.01				$	10.06				$	9.94				$	9.83				$	9.79
Tangible common equity / tangible assets (2)					12.36			%		12.34			%		12.50			%		12.97			%		13.47	%

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

⁽²⁾ This non-GAAP ratio is total stockholders' equity less goodwill and other intangible assets to total assets less goodwill and other intangible assets.

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