HarborOne Bancorp (HONE) 8-K HarborOne Bancorp, Inc. Announces 2021 Third Quarter Earnings

Exhibit 99.1

HarborOne Bancorp, Inc. Announces 2021 Third Quarter Earnings

Contact: Linda Simmons, EVP, CFO

Brockton, Massachusetts (October 26, 2021): HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $12.3 million, or $0.24 per diluted share, for the third quarter of 2021, compared to $14.3 million, or $0.27 per diluted share, for the preceding quarter and $11.9 million, or $0.22 per diluted share, for the same period last year. For the nine months ended September 30, 2021, net income was $45.9 million, or $0.88 per diluted share, compared to $27.2 million, or $0.50 per diluted share, for the same period last year.

Selected Third Quarter Financial Highlights:

● Commercial loan growth of $52.8 million, or 2.6%, excluding U.S. Small Business Administration Paycheck Protection Program (“PPP”) loans.

● Recorded a reversal of provision of $1.6 million, reflecting continued positive pandemic and economic trends.

● Second share repurchase program completed at an average cost of $14.09 per share, third share repurchase program approved.

● Cost of funds continue to decline, decreasing 4 basis points.

“We continue to make steady progress against our plan despite market challenges including an ultra-competitive rate environment, tight labor market, and the ongoing impact of COVID-19. I’m incredibly proud of our team for continuing to deliver in these tough times,” said Jim Blake, CEO.”  “We’re very excited with our recently announced expansion into Brighton, Brookline, and Cambridge as we continue to make investments in building out our greater Boston footprint. We look forward to the opportunities this expansion will provide for our customers and the business,” added Joe Casey, President and COO.

Net Interest Income

The Company’s net interest and dividend income was $32.8 million for the quarter ended September 30, 2021, up $273,000, or 0.8%, from $32.5 million for the quarter ended June 30, 2021 and up $1.6 million, or 5.2%, from $31.2 million for the quarter ended September 30, 2020. The tax equivalent interest rate spread and net interest margin were 2.97% and 3.08%, respectively, for the quarter ended September 30, 2021, compared to 2.93% and 3.06%, respectively, for the quarter ended June 30, 2021, and 2.87% and 3.09%, respectively, for the quarter ended September 30, 2020. Net interest margin and the tax equivalent interest rate spread continue to be impacted by low interest rates, elevated loan prepayments, and the recognition of deferred fees on PPP loan forgiveness. The continued favorable repricing of deposits was partially offset by the decrease in the yield on interest-earning assets. Additionally, effective September 30, 2021, $20.0 million in Federal Home Loan Bank of Boston (“FHLB”) borrowings with an average cost of 3.5% were prepaid, with a penalty of $1.1 million included in noninterest expense.  Although interest rates may begin to rise moving into 2022, the positive impact of the recognition of deferred loan fees on PPP loan forgiveness will diminish, resulting in continued margin pressure.

The quarter-over-quarter increase in net interest and dividend income included a decrease of $79,000, or 0.2%, in total interest and dividend income and a decrease of $352,000, or 10.5%, in total interest expense. The decrease in total interest and dividend income primarily reflected a $31.0 million decrease in average interest-earning assets and a 2-basis point decrease in the yield on average interest-earning assets. The yield on loans was 3.91% for the quarter ended September 30, 2021, down from 4.00% for the quarter ended June 30, 2021, as new loan originations have lower interest rates. The yield on loans continues to be impacted by the recognition of deferred fees due to PPP loan forgiveness, accretion income and prepayment penalties, although the recent uptick in rates is expected to lessen the impact from these yield adjustments in the future. The three months ended September 30, 2021 and June 30, 2021 include the recognition of deferred fees on PPP loans in the amount of $1.9 million and $1.3 million, respectively. Most of the remaining $2.1 million in deferred PPP loan fees are expected to be recognized in the fourth quarter of 2021 as the loans are forgiven. Interest on loans in the third quarter included $675,000 in accretion income from the fair value discount on loans acquired in connection with the merger with Coastway Bancorp, Inc. and $436,000 in prepayment penalties on commercial loans. Accretion income and prepayment penalties in the preceding quarter were $1.0 million and $244,000, respectively.

The quarter-over-quarter decrease in total interest expense primarily reflected a decrease in interest rates, resulting in a 4-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 certificate of deposit accounts decreased quarter over quarter by $19.4 million, while the average balance of non-certificate accounts increased $49.0 million from the preceding quarter. Average FHLB advances decreased $12.4 million, and the cost of those funds decreased 17 basis points, resulting in a decrease of $100,000 in interest expense on FHLB borrowings.

The increase in net interest and dividend income from the prior year quarter reflected a decrease of $2.9 million, or 48.9%, in total interest expense, partially offset by a $1.2 million, or 3.3%, decrease in total interest and dividend income. The decreases reflect rate

and volume changes in both interest-bearing assets and liabilities. The cost of interest-bearing liabilities decreased 41 basis points while the average balance increased $110.2 million. The yield on interest-earning assets decreased 31 basis points while the average balance increased $212.6 million.

Noninterest Income

Total noninterest income increased $307,000, or 1.4%, to $22.0 million for the quarter ended September 30, 2021, from $21.7 million for the quarter ended June 30, 2021. Mortgage loan demand remained strong; although refinancing activity continued to slow, purchase originations increased. Mortgage loan closings of $604.9 million resulted in a gain on loan sales of $12.8 million for the quarter ended September 30, 2021, as compared to $638.8 million in mortgage closings and $14.3 million in gain on sales for the preceding quarter. The locked residential mortgage pipeline decreased $125.9 million and negatively impacted the fair value of the derivative mortgage commitments recorded through the gain on loan sales. The change in the fair value of derivatives included in mortgage banking income was a negative $833,000 for the three months ended September 30, 2021 as compared to a negative $5.3 million for the three months ended June 30, 2021.

The net impact to mortgage servicing rights values was a decrease of $992,000 and $2.6 million for the three months ended September 30, 2021 and June 30, 2021, respectively. The change in the fair value of mortgage servicing rights positively impacted mortgage banking income; however, it was offset by the impact of residential mortgage loan payoffs. The fair value of the mortgage servicing rights increased $621,000 for the three months ended September 30, 2021, as compared to a $1.1 million decrease for the three months ended June 30, 2021. The 10-year Treasury Constant Maturity rate increased 7 basis points in the third quarter of 2021 and decreased 29 basis points in the second quarter of 2021.The change in the fair value of the mortgage servicing rights is generally consistent with the change in the 10-year Treasury Constant Maturity rate. As interest rates rise and prepayment speeds slow, mortgage servicing rights values tend to increase; conversely, as interest rates fall and prepayment speeds quicken mortgage servicing rights values tend to decrease. The negative impact on mortgage servicing rights when rates fall in the future may be muted, as mortgage servicing rights originated during the second half of 2020 were at historically low rates. Residential mortgage loan payoffs resulted in a decrease of mortgage servicing rights values in the amount of $1.6 million and $1.5 million for the three months ended September 30, 2021 and June 30, 2021, respectively.

Deposit account fees increased $112,000, or 2.5%, to $4.7 million for the quarter ended September 30, 2021, from $4.5 million for the quarter ended June 30, 2021.

Total noninterest income decreased $22.4 million, or 50.5%, as compared to the quarter ended September 30, 2020, primarily due to a $22.5 million, or 59.0%, decrease in mortgage banking income, driven by the decrease in loan closings and narrowing gain-on-sale margins in 2021. The decrease in mortgage banking income was offset by a $1.2 million increase in deposit account fees as deposit fees were reinstated in 2021.

Noninterest Expense

Total noninterest expenses were $39.3 million for the quarter ended September 30, 2021, an increase of $676,000, or 1.8%, from the quarter ended June 30, 2021, primarily driven by the $1.1 million prepayment penalty on Federal Home Loan Bank borrowings, partially offset by a $386,000 decrease in compensation and benefits and a $73,000 decrease in loan expense. Both decreases reflect the decrease in residential mortgage loan closings at HarborOne Mortgage, LLC (“HarborOne Mortgage”). During the third quarter, HarborOne Mortgage closed its New Jersey office, as management continues to respond to declining mortgage origination volume with strategic expense reduction.  

Total noninterest expenses decreased $6.4 million, or 14.1%, from the quarter ended September 30, 2020. Compensation and benefits decreased $5.1 million and loan expenses decreased $1.8 million, consistent with the decrease in residential mortgage loan closings.

Income Tax Provision

The effective tax rate was 28.6% for the quarter ended September 30, 2021, compared to 28.3% for the quarter ended June 30, 2021 and 27.7% for the quarter ended September 30, 2020.

Provision for Loan Losses and Asset Quality

The Company recorded a reversal of provision for loan losses of $1.6 million for the quarter ended September 30, 2021, compared to a reversal of provision of $4.3 million for the quarter ended June 30, 2021 and a provision for loan losses of $13.5 million for the quarter ended September 30, 2020. The allowance for loan losses was $48.0 million, or 1.39% of total loans at September 30, 2021, compared to $51.3 million, or 1.50% of total loans at June 30, 2021 and $49.2 million, or 1.40% of total loans at September 30, 2020. 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 September 30, 2021 included adjustments for our quarterly analysis of our historical and peer loss experience rates, commercial and residential loan growth, and a $5.0 million specific reserve on one commercial real estate credit. These items, combined with adjustments for positive economic and pandemic trends of $4.8 million, resulted in a $1.6 million negative provision. The provision for loan losses for the quarter ended June 30, 2021 included adjustments based on our quarterly analysis of our historical and peer loss experience rates, commercial real estate loan growth, an increase of general reserve allocation on jumbo residential mortgage loans and a $1.5 million specific reserve on one commercial credit. Positive economic and pandemic trends also resulted in a $6.4 million negative provision for COVID-19. 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.

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, and the loan risk profile of each loan type. Positive economic trends, vaccination rates, and COVID-19 cases, low delinquency levels, and status of deferred loans resulted in management reducing the provision related to the COVID-19 pandemic in the third quarter of 2021 with a reversal of provision of $4.8 million. Similar trends resulted in management reducing provisions related to the COVID-19 pandemic in the second quarter of 2021 with a reversal of provision of $6.4 million.

Management continues to evaluate our loan portfolio, particularly the commercial loan portfolio, in light of current economic conditions, 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 73.5% of the total commercial loan portfolio. Management initially identified six sectors as the most susceptible to increased credit risk as a result of the COVID-19 pandemic: retail, office space, hotels, health and social services, restaurants, and recreation. In the second quarter of 2021, as part of ongoing monitoring of the at-risk sectors, management determined that the health and social services sector no longer presents an additional risk from the impact of the COVID-19 pandemic as borrowers in this sector have returned to pre-pandemic revenue and profitability levels. Health and social services operations supported by first-round PPP loans have a 100% forgiveness rate. Further, over the last eight quarters, the sector has experienced a positive migration in obligor risk ratings and no watch or substandard credits, and delinquency in the sector is currently zero. The total loan portfolio of the remaining five commercial sectors identified as at risk totaled $751.0 million at September 30, 2021, which represents 35.1% of the commercial loan portfolio. The five currently identified at-risk sectors include $630.4 million in commercial real estate loans, $75.8 million in commercial and industrial loans, and $44.8 million in commercial construction loans. Non-performing loans included in the at-risk sectors amounted to $18.3 million at September 30, 2021, of which $9.1 million was included in the hotels sector and $8.8 million was included in the office sector.

As of September 30, 2021, the retail sector was $266.8 million, or 12.5% of total commercial loans, and included $219.3 million in commercial real estate loans, $28.9 million in commercial and industrial loans, and $18.6 million in commercial construction loans. There are no active deferrals for loans in this sector or PPP loans. We originated $6.0 million loans during the third quarter that are within the retail sector.

As of September 30, 2021, the office space sector was $214.2 million, or 10.0% of total commercial loans, and included $199.3 million in commercial real estate loans, $14.0 million in commercial and industrial loans, and $854,000 in commercial construction loans. There are no active deferrals for loans and one expired deferral, in the amount of $515,000 is delinquent and on nonaccrual. No PPP loans were originated in this sector. We originated $1.4 million loans during the third quarter that are within the office space sector and there were $4.5 million in advances on existing loans. The Bank is the lead bank in a commercial real estate credit secured by office space that was downgraded and placed on nonaccrual during the third quarter of 2021. The Bank’s portion of this credit has a recorded net book value of $8.8 million, and a specific reserve of $5.0 million was recorded.  

As of September 30, 2021, the hotel sector was $193.7 million, or 9.1% of total commercial loans, and included $182.6 million in commercial real estate loans, $2.0 million in commercial and industrial loans, and $9.0 million in commercial construction loans. PPP loans included in the sector totaled $31,000. Active deferrals for loans in this sector had outstanding principal balances of $7.7 million, and one loan with an outstanding principal balance of $242,000 had an expired deferral period and is greater than 30 days delinquent. At September 30, 2021, nonperforming loans included in the hotel sector amount to $9.1 million. The non-accrual loan amounted to $9.1 million with a deferral period that expired in the third quarter of 2021, however it was determined in the fourth quarter of 2020 that weaknesses in the borrower’s credit warranted a downgrade to substandard and nonaccrual status. A specific reserve of $1.8 million has been allocated to this loan. The Bank is receiving payments of interest only on its pro rata share of the loan in accordance with a forbearance agreement, in part through a non-revolving line of credit provided solely by the lead bank. The Bank sold a nonperforming loan that was included in the hotel sector in the third quarter of 2021. The loan had a $3.3 million net book value at the time of sale and total a charge-offs on the credit amounted to $1.3 million, $157,000 of which was taken in the third quarter of 2021.

As of September 30, 2021, the restaurant sector amounted to $57.9 million, or 2.7% of total commercial loans, including $313,000 in PPP loans. There were no active deferrals in this sector and expired deferrals are paying as expected. The recreation sector amounted to

$18.5 million, or 0.9% of total commercial loans, including $3,000 in PPP loans. There are no active deferrals for loans in this sector and expired deferrals are paying as expected.

We provided access to the PPP to both our existing customers and new customers, to ensure small businesses in the communities we serve have access to this important lifeline for their businesses. No PPP loans were originated in the third quarter and forgiveness was processed on $50.9 million loans. We have processed forgiveness on approximately 98% of PPP loans executed in 2020, with a success rate above 99%, and we have processed forgiveness on approximately 50% of the PPP loans executed in 2021. As of September 30, 2021, outstanding PPP loans amounted to $54.3 million and there was $2.1 million in deferred processing fee income. We expect to complete the forgiveness process on most of the remaining PPP loans by year end.

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 September 30, 2021, we have two active payment deferrals on commercial loans with a total principal balance of $7.7 million, or 0.4% of total commercial loans, both of which are loans included in an at-risk sector. As of September 30, 2021, 96.8% of the commercial deferrals have expired and the borrower is making payments as agreed, 0.3% of the commercial deferrals have expired and the borrower is delinquent, and 2.9% are in active deferral period. The active commercial deferrals are scheduled to expire during 2021. We are no longer providing deferrals under the Coronavirus Aid Relief and Economic Security Act but continue to consider accommodations in the normal course of business.

The residential loan and consumer loan portfolios have not experienced significant credit quality deterioration as of September 30, 2021; 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 September 30, 2021, we had one active payment deferrals on residential mortgage loans with a total principal balance of $177, 000. As of September 30, 2021, 97.8% of the deferrals have expired and are paying as agreed, 1.8% have expired and are delinquent and 0.5% are in active deferral periods. We have no active payment deferrals on consumer loans and 98.4% of the consumer loan deferrals have expired and are paying as agreed. Requests for additional extensions on residential mortgage loans and consumer loans were not significant as of September 30, 2021.

Net charges-offs totaled $1.7 million for the quarter ended September 30, 2021, or 0.19% of average loans outstanding on an annualized basis. During the third quarter, there was a $1.5 million charge-off on a single credit previously reserved for in the second quarter of 2021. Net recoveries totaled $175,000, or 0.02% of average loans outstanding on an annualized basis, for the quarter ended June 30, 2021 and net charge-offs totaled $338,000, or 0.04% of average loans outstanding on an annualized basis, for the quarter ended September 30, 2020.

Credit quality performance has remained strong with total nonperforming assets of $36.5 million at September 30, 2021, compared to $32.7 million at June 30, 2021 and $41.0 million at September 30, 2020. Nonperforming assets as a percentage of total assets were 0.80% at September 30, 2021, 0.71% at June 30, 2021, and 0.93% at September 30, 2020. During the third quarter of 2021, a nonperforming commercial real estate loan with a $3.3 million net book value was sold and a charge-off of $157,000 was recorded. As noted above, a commercial real estate credit secured by office space was downgraded and placed on nonaccrual. The Bank’s 56% portion has a recorded net book value of $8.8 million and a specific reserve of $5.0 million was recorded in the third quarter.

Balance Sheet

Total assets decreased $49.3 million, or 1.1%, to $4.57 billion at September 30, 2021 from $4.62 billion at June 30, 2021. The decrease primarily reflects a decrease of $97.3 million in short-term investments and a $26.8 million decrease in loans held for sale, partially offset by increases of $41.3 million in net loans and $36.7 million in securities available for sale. Short-term investments were used to pay down FHLB borrowings and purchase securities available for sale.

Net loans increased $41.3 million, or 1.2%, to $3.41 billion at September 30, 2021 from $3.37 billion at June 30, 2021. The net increase in loans for the three months ended September 30, 2021 was primarily due to increases in residential mortgage loans of $64.3 million commercial construction loans of $45.1 million and commercial real estate loans of $11.4 million, partially offset by decreases in commercial and industrial loans of $52.7 million and consumer loans of $30.2 million. The decrease in commercial and industrial loans is primarily due to forgiveness of PPP loans during the quarter. Excluding the change in PPP loans, total commercial loans increased $52.8 million, primarily due to an increase in commercial construction loans. The allowance for loan losses was $48.0 million at September 30, 2021 and $51.3 million at June 30, 2021, the change primarily reflecting a negative $1.6 million provision for loan losses and $1.7 million in net loan charge-offs recorded in the third quarter.

Total deposits was $3.69 billion at September 30, 2021 and June 30, 2021. Compared to the prior quarter, non-certificate accounts increased $28.8 million and term certificate accounts decreased $22.7 million. FHLB borrowings decreased $31.8 million, or 36.3%, to $55.7 million at September 30, 2021 from $87.5 million at June 30, 2021. During the third quarter FHLB borrowings of $20.0 million were prepaid resulting in a $1.1 million prepayment penalty.

As previously announced, the Bank has agreed to acquire the leases to four East Boston Savings Bank branches being divested as part of the acquisition of East Boston Savings Bank by Rockland Trust Company. The transaction is subject to a number of contingencies and is expected to close by the end of the year.  The Bank also agreed to acquire the branches’ furniture, fixtures, and equipment, and

expects to add approximately 19 new employees to staff the branches. The new branches are located in Brighton, Cambridge, and Brookline, Massachusetts. The average leased space is approximately 1300 square feet and the leases generally have initial terms of 10 years with one or more year option terms. The initial terms expire in 6-10 years. The Bank also transferred a former branch property into assets held for sale at a carrying value of $881,000.

Total stockholders’ equity was $680.0 million at September 30, 2021, compared to $705.5 million at June 30, 2021 and $694.1 million at September 30, 2020. During the third quarter, the Company announced and completed a share repurchase program adopted April 16, 2021, repurchasing 2,790,903 shares of the Company’s common stock at an average cost of $14.09 per share. The Company adopted a third share repurchase program on September 17, 2021 to repurchase up to 2,668,159 shares of the Company’s common stock, or approximately 5% of the Company’s outstanding shares. The Company has not repurchased any shares under the third share repurchase program as of September 30, 2021. The tangible common equity to tangible assets ratio was 13.50% at September 30, 2021, 13.91% at June 30, 2021, and 14.23% at September 30, 2020. At September 30, 2021, 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 27 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, and Maine, 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, 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; changes in 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 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 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,
(in thousands)	2021		2021		2021		2020		2020
Assets
Cash and due from banks	$	42,589	$	41,328	$	37,074	$	31,777	$	29,180
Short-term investments		277,050		374,319		281,451		174,093		108,338
Total cash and cash equivalents		319,639		415,647		318,525		205,870		137,518
Securities available for sale, at fair value		390,552		353,848		304,168		276,498		280,308
Federal Home Loan Bank stock, at cost		6,828		7,241		7,572		8,738		11,631
Asset held for sale		881		—		—		—		—
Loans held for sale, at fair value		77,052		103,886		210,494		208,612		190,373
Loans:
Commercial real estate		1,573,284		1,561,873		1,559,056		1,551,265		1,380,071
Commercial construction		152,685		107,585		112,187		99,331		211,953
Commercial and industrial		414,814		467,479		499,728		464,393		480,129
Total commercial loans		2,140,783		2,136,937		2,170,971		2,114,989		2,072,153
Residential real estate		1,160,689		1,096,370		1,062,229		1,105,823		1,130,935
Consumer		156,272		186,430		228,279		273,830		312,743
Loans		3,457,744		3,419,737		3,461,479		3,494,642		3,515,831
Less: Allowance for loan losses		(47,988)		(51,273)		(55,384)		(55,395)		(49,223)
Net loans		3,409,756		3,368,464		3,406,095		3,439,247		3,466,608
Mortgage servicing rights, at fair value		36,540		35,955		33,939		24,833		20,159
Goodwill		69,802		69,802		69,802		69,802		69,802
Other intangible assets		3,399		3,723		4,047		4,370		4,694
Other assets		252,645		257,856		251,316		245,645		247,226
Total assets	$	4,567,094	$	4,616,422	$	4,605,958	$	4,483,615	$	4,428,319
Liabilities and Stockholders' Equity
Deposits:
Demand deposit accounts	$	756,917	$	800,118	$	777,959	$	689,672	$	650,336
NOW accounts		300,577		250,099		224,869		218,584		202,020
Regular savings and club accounts		1,144,595		1,123,123		1,113,450		998,994		912,017
Money market deposit accounts		832,441		832,006		861,867		866,661		815,644
Term certificate accounts		659,850		682,594		696,438		732,298		785,871
Total deposits		3,694,380		3,687,940		3,674,583		3,506,209		3,365,888
Short-term borrowed funds		—		—		—		35,000		95,000
Long-term borrowed funds		55,720		87,479		97,488		114,097		141,106
Subordinated debt		34,128		34,096		34,064		34,033		34,002
Other liabilities and accrued expenses		102,834		101,436		101,750		97,962		98,220
Total liabilities		3,887,062		3,910,951		3,907,885		3,787,301		3,734,216
Common stock		585		585		585		584		584
Additional paid-in capital		468,526		467,194		465,832		464,176		463,531
Unearned compensation - ESOP		(29,921)		(30,380)		(30,840)		(31,299)		(31,759)
Retained earnings	���	315,683		305,831		294,116		277,312		261,304
Treasury stock		(73,723)		(38,588)		(31,460)		(16,644)		(1,333)
Accumulated other comprehensive income (loss)		(1,118)		829		(160)		2,185		1,776
Total stockholders' equity		680,032		705,471		698,073		696,314		694,103
Total liabilities and stockholders' equity	$	4,567,094	$	4,616,422	$	4,605,958	$	4,483,615	$	4,428,319

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income - Trend

(Unaudited)

	Quarters Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
(in thousands, except share data)	2021		2021		2021		2020		2020
Interest and dividend income:
Interest and fees on loans	$	33,680	$	34,106	$	33,860	$	35,274	$	34,496
Interest on loans held for sale		665		852		1,324		1,267		1,060
Interest on securities		1,293		793		585		1,064		1,317
Other interest and dividend income		170		136		78		115		175
Total interest and dividend income		35,808		35,887		35,847		37,720		37,048
Interest expense:
Interest on deposits		2,050		2,302		2,720		3,775		4,520
Interest on FHLB borrowings		431		531		552		671		835
Interest on subordinated debentures		524		524		523		524		524
Total interest expense		3,005		3,357		3,795		4,970		5,879
Net interest and dividend income		32,803		32,530		32,052		32,750		31,169
Provision (credit) for loan losses		(1,627)		(4,286)		91		7,608		13,454
Net interest and dividend income, after provision for loan losses		34,430		36,816		31,961		25,142		17,715
Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans		12,756		14,262		24,802		28,274		34,055
Changes in mortgage servicing rights fair value		(992)		(2,552)		3,409		(1,041)		(193)
Other		3,882		4,075		4,515		4,522		4,259
Total mortgage banking income		15,646		15,785		32,726		31,755		38,121
Deposit account fees		4,658		4,546		3,852		3,667		3,451
Income on retirement plan annuities		108		106		104		106		104
Gain on sale and call of securities, net		241		—		—		—		—
Bank-owned life insurance income		515		508		493		550		560
Other income		842		758		634		949		2,203
Total noninterest income		22,010		21,703		37,809		37,027		44,439
Noninterest expenses:
Compensation and benefits		24,760		25,146		27,454		27,122		29,839
Occupancy and equipment		4,765		4,702		5,256		4,545		4,581
Data processing		2,205		2,362		2,343		2,235		2,119
Loan expense		1,323		1,250		2,435		2,689		3,167
Marketing		880		831		813		640		817
Professional fees		1,362		1,487		1,583		1,252		1,458
Deposit insurance		341		332		320		320		310
Prepayment penalties on Federal Home Loan Bank advances		1,095		—		—		—		—
Other expenses		2,543		2,488		2,598		2,483		3,409
Total noninterest expenses		39,274		38,598		42,802		41,286		45,700
Income before income taxes		17,166		19,921		26,968		20,883		16,454
Income tax provision		4,907		5,645		7,576		3,283		4,561
Net income	$	12,259	$	14,276	$	19,392	$	17,600	$	11,893
Earnings per common share:
Basic	$	0.25	$	0.28	$	0.37	$	0.33	$	0.22
Diluted	$	0.24	$	0.27	$	0.37	$	0.33	$	0.22
Weighted average shares outstanding:
Basic		49,801,123		51,778,293		52,537,409		53,947,868		54,465,339
Diluted		50,663,415		52,650,071		53,000,830		53,973,737		54,465,339

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income

(Unaudited)

	For the Nine Months Ended September 30,
(dollars in thousands, except share data)	2021		2020		$ Change		% Change
Interest and dividend income:
Interest and fees on loans	$	101,646	$	102,491	$	(845)	(0.8)	%
Interest on loans held for sale		2,841		2,625		216	8.2
Interest on securities		2,671		4,549		(1,878)	(41.3)
Other interest and dividend income		384		1,173		(789)	(67.3)
Total interest and dividend income		107,542		110,838		(3,296)	(3.0)
Interest expense:
Interest on deposits		7,072		19,018		(11,946)	(62.8)
Interest on FHLB borrowings		1,514		2,933		(1,419)	(48.4)
Interest on subordinated debentures		1,571		1,571		—	0.0
Total interest expense		10,157		23,522		(13,365)	(56.8)
Net interest and dividend income		97,385		87,316		10,069	11.5
Provision (credit) for loan losses		(5,822)		27,207		(33,029)	(121.4)
Net interest and dividend income, after provision for loan losses		103,207		60,109		43,098	71.7
Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans		51,820		77,195		(25,375)	(32.9)
Changes in mortgage servicing rights fair value		(135)		(5,691)		5,556	97.6
Other		12,472		10,962		1,510	13.8
Total mortgage banking income		64,157		82,466		(18,309)	(22.2)
Deposit account fees		13,056		10,351		2,705	26.1
Income on retirement plan annuities		318		308		10	3.2
Gain on sale and call of securities, net		241		2,533		(2,292)	(90.5)
Bank-owned life insurance income		1,516		1,665		(149)	(8.9)
Other income		2,234		4,642		(2,408)	(51.9)
Total noninterest income		81,522		101,965		(20,443)	(20.0)
Noninterest expenses:
Compensation and benefits		77,360		78,493		(1,133)	(1.4)
Occupancy and equipment		14,723		13,296		1,427	10.7
Data processing		6,910		6,576		334	5.1
Loan expense		5,008		7,433		(2,425)	(32.6)
Marketing		2,524		2,750		(226)	(8.2)
Professional fees		4,432		4,204		228	5.4
Deposit insurance		993		860		133	15.5
Prepayment penalties on Federal Home Loan Bank advances		1,095		—		1,095	100.0
Other expenses		7,629		11,336		(3,707)	(32.7)
Total noninterest expenses		120,674		124,948		(4,274)	(3.4)
Income before income taxes		64,055		37,126		26,929	72.5
Income tax provision		18,128		9,934		8,194	82.5
Net income	$	45,927	$	27,192	$	18,735	68.9	%
Earnings per common share:
Basic	$	0.89	$	0.50
Diluted	$	0.88	$	0.50
Weighted average shares outstanding:
Basic		51,362,252		54,436,090
Diluted		52,094,749		54,436,090

HarborOne Bancorp, Inc.

Average Balances / Yields

(Unaudited)

	Quarters Ended
	September 30, 2021							June 30, 2021							September 30, 2020
	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)	$	358,927		$	1,293	1.43	%	$	325,205		$	793	0.98	%	$	269,477		$	1,319	1.95	%
Other interest-earning assets		372,892			170	0.18			397,979			136	0.14			121,384			175	0.57
Loans held for sale		84,399			665	3.13			115,240			852	2.97			139,418			1,060	3.02
Loans
Commercial loans (2)		2,121,432			22,394	4.19			2,152,105			22,079	4.11			2,017,492			19,066	3.76
Residential real estate loans (2)		1,121,898			9,352	3.31			1,064,481			9,747	3.67			1,135,947			11,833	4.14
Consumer loans (2)		170,366			1,934	4.50			205,856			2,280	4.44			333,623			3,597	4.29
Total loans		3,413,696			33,680	3.91			3,422,442			34,106	4.00			3,487,062			34,496	3.94
Total interest-earning assets		4,229,914			35,808	3.36			4,260,866			35,887	3.38			4,017,341			37,050	3.67
Noninterest-earning assets		347,060							339,438							333,444
Total assets	$	4,576,974						$	4,600,304						$	4,350,785
Interest-bearing liabilities:
Savings accounts	$	1,136,131			365	0.13		$	1,118,494			461	0.17		$	897,751			589	0.26
NOW accounts		283,725			45	0.06			231,075			41	0.07			199,982			39	0.08
Money market accounts		832,340			392	0.19			853,586			417	0.20			825,732			745	0.36
Certificates of deposit		570,570			1,087	0.76			589,964			1,229	0.84			684,002			2,895	1.68
Brokered deposits		100,000			161	0.64			100,000			154	0.62			139,887			252	0.72
Total interest-bearing deposits		2,922,766			2,050	0.28			2,893,119			2,302	0.32			2,747,354			4,520	0.65
FHLB advances		84,438			431	2.03			96,823			531	2.20			149,750			835	2.22
Subordinated debentures		34,111			524	6.09			34,080			524	6.17			33,983			524	6.13
Total borrowings		118,549			955	3.20			130,903			1,055	3.23			183,733			1,359	2.94
Total interest-bearing liabilities		3,041,315			3,005	0.39			3,024,022			3,357	0.45			2,931,087			5,879	0.80
Noninterest-bearing liabilities:
Noninterest-bearing deposits		756,927							784,521							641,353
Other noninterest-bearing liabilities		90,366							88,577							89,319
Total liabilities		3,888,608							3,897,120							3,661,759
Total stockholders' equity		688,366							703,184							689,026
Total liabilities and stockholders' equity	$	4,576,974						$	4,600,304						$	4,350,785
Tax equivalent net interest income					32,803							32,530							31,171
Tax equivalent interest rate spread (3)						2.97	%						2.93	%						2.87	%
Less: tax equivalent adjustment					—							—							2
Net interest income as reported				$	32,803						$	32,530						$	31,169
Net interest-earning assets (4)	$	1,188,599						$	1,236,844						$	1,086,254
Net interest margin (5)						3.08	%						3.06	%						3.09	%
Tax equivalent effect						—							—							—
Net interest margin on a fully tax equivalent basis						3.08	%						3.06	%						3.09	%
Average interest-earning assets to average interest-bearing liabilities		139.08	%						140.90	%						137.06	%
Supplemental information:
Total deposits, including demand deposits	$	3,679,693		$	2,050			$	3,677,640		$	2,302			$	3,388,707		$	4,520
Cost of total deposits						0.22	%						0.25	%						0.53	%
Total funding liabilities, including demand deposits	$	3,798,242		$	3,005			$	3,808,543		$	3,357			$	3,572,440		$	5,879
Cost of total funding liabilities						0.31	%						0.35	%						0.65	%
(1) Includes securities available for sale. Interest income from tax exempt securities is computed on a taxable equivalent basis using a tax rate of 21% for the quarters presented. The yield on investments before tax equivalent adjustments for the quarter ended September 30, 2020 was 1.95%.
(2) Includes nonaccruing loan balances and interest received on such loans.
(3) Tax equivalent 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)

	Nine Months Ended
	September 30, 2021							September 30, 2020
	Average							Average
	Outstanding					Yield/		Outstanding					Yield/
	Balance			Interest		Cost		Balance			Interest		Cost
	(dollars in thousands)
Interest-earning assets:
Investment securities (1)	$	318,817		$	2,671	1.12	%	$	261,740		$	4,571	2.33	%
Other interest-earning assets		317,837			384	0.16			176,745			1,173	0.89
Loans held for sale		130,622			2,841	2.91			106,790			2,625	3.28
Loans
Commercial loans (2)		2,144,726			65,253	4.07			1,846,462			55,385	4.01
Residential real estate loans (2)		1,090,361			29,439	3.61			1,120,065			35,188	4.20
Consumer loans (2)		209,443			6,954	4.44			373,809			11,918	4.26
Total loans		3,444,530			101,646	3.95			3,340,336			102,491	4.10
Total interest-earning assets		4,211,806			107,542	3.41			3,885,611			110,860	3.81
Noninterest-earning assets		338,980							327,385
Total assets	$	4,550,786						$	4,212,996
Interest-bearing liabilities:
Savings accounts	$	1,104,765			1,363	0.16		$	809,106			2,721	0.45
NOW accounts		242,623			123	0.07			182,146			103	0.08
Money market accounts		849,041			1,369	0.22			829,263			4,535	0.73
Certificates of deposit		589,404			3,760	0.85			736,355			10,724	1.95
Brokered deposits		100,000			457	0.61			99,739			935	1.25
Total interest-bearing deposits		2,885,833			7,072	0.33			2,656,609			19,018	0.96
FHLB advances		94,482			1,514	2.14			216,333			2,933	1.81
Subordinated debentures		34,080			1,571	6.16			33,951			1,571	6.18
Total borrowings		128,562			3,085	3.21			250,284			4,504	2.40
Total interest-bearing liabilities		3,014,395			10,157	0.45			2,906,893			23,522	1.08
Noninterest-bearing liabilities:
Noninterest-bearing deposits		749,426							549,233
Other noninterest-bearing liabilities		90,763							76,660
Total liabilities		3,854,584							3,532,786
Total stockholders' equity		696,202							680,210
Total liabilities and stockholders' equity	$	4,550,786						$	4,212,996
Tax equivalent net interest income					97,385							87,338
Tax equivalent interest rate spread (3)						2.96	%						2.73	%
Less: tax equivalent adjustment					—							22
Net interest income as reported				$	97,385						$	87,316
Net interest-earning assets (4)	$	1,197,411						$	978,718
Net interest margin (5)						3.09	%						3.00	%
Tax equivalent effect						—							—
Net interest margin on a fully tax equivalent basis						3.09	%						3.00	%
Average interest-earning assets to average interest-bearing liabilities		139.72	%						133.67	%
Supplemental information:
Total deposits, including demand deposits	$	3,635,259		$	7,072			$	3,205,842		$	19,018
Cost of total deposits						0.26	%						0.79	%
Total funding liabilities, including demand deposits	$	3,763,821		$	10,157			$	3,456,126		$	23,522
Cost of total funding liabilities						0.36	%						0.91	%
(1) Interest income from tax exempt securities is computed on a tax equivalent basis using a tax rate of 21%. The yield on investments before tax equivalent adjustments was 2.32% for the six months ended September 30, 2020.
(2) Includes nonaccruing loan balances and interest received on such loans.
(3) Tax equivalent 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.

HarborOne Bancorp, Inc.

Average Balances and Yield Trend

(Unaudited)

	Average Balances - Trend - Quarters Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
	(in thousands)
Interest-earning assets:
Investment securities (1)	$	358,927		$	325,205		$	271,357		$	271,511		$	269,477
Other interest-earning assets		372,892			397,979			180,526			84,969			121,384
Loans held for sale		84,399			115,240			193,426			178,980			139,418
Loans
Commercial loans (2)		2,121,432			2,152,105			2,161,076			2,112,377			2,017,492
Residential real estate loans (2)		1,121,898			1,064,481			1,084,292			1,106,286			1,135,947
Consumer loans (2)		170,366			205,856			253,014			292,665			333,623
Total loans		3,413,696			3,422,442			3,498,382			3,511,328			3,487,062
Total interest-earning assets		4,229,914			4,260,866			4,143,691			4,046,788			4,017,341
Noninterest-earning assets		347,060			339,438			330,257			317,663			333,444
Total assets	$	4,576,974		$	4,600,304		$	4,473,948		$	4,364,451		$	4,350,785
Interest-bearing liabilities:
Savings accounts	$	1,136,131		$	1,118,494		$	1,058,820		$	968,766		$	897,751
NOW accounts		283,725			231,075			212,282			205,845			199,982
Money market accounts		832,340			853,586			861,518			840,674			825,732
Certificates of deposit		570,570			589,964			608,089			649,919			684,002
Brokered deposits		100,000			100,000			100,000			109,788			139,887
Total interest-bearing deposits		2,922,766			2,893,119			2,840,709			2,774,992			2,747,354
FHLB advances		84,438			96,823			102,383			119,763			149,750
Subordinated debentures		34,111			34,080			34,048			34,015			33,983
Total borrowings		118,549			130,903			136,431			153,778			183,733
Total interest-bearing liabilities		3,041,315			3,024,022			2,977,140			2,928,770			2,931,087
Noninterest-bearing liabilities:
Noninterest-bearing deposits		756,927			784,521			706,274			656,227			641,353
Other noninterest-bearing liabilities		90,366			88,577			93,380			84,387			89,319
Total liabilities		3,888,608			3,897,120			3,776,794			3,669,384			3,661,759
Total stockholders' equity		688,366			703,184			697,154			695,067			689,026
Total liabilities and stockholders' equity	$	4,576,974		$	4,600,304		$	4,473,948		$	4,364,451		$	4,350,785
	Annualized Yield Trend - Quarters Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020		��	September 30, 2020
Interest-earning assets:
Investment securities (1)		1.43	%		0.98	%		0.87	%		1.56	%		1.95	%
Other interest-earning assets		0.18	%		0.14	%		0.18	%		0.54	%		0.57	%
Loans held for sale		3.13	%		2.97	%		2.78	%		2.82	%		3.02	%
Commercial loans (2)		4.19	%		4.11	%		3.90	%		3.92	%		3.76	%
Residential real estate loans (2)		3.31	%		3.67	%		3.87	%		4.04	%		4.14	%
Consumer loans (2)		4.50	%		4.44	%		4.39	%		4.36	%		4.29	%
Total loans		3.91	%		4.00	%		3.93	%		4.00	%		3.94	%
Total interest-earning assets		3.36	%		3.38	%		3.51	%		3.71	%		3.67	%
Interest-bearing liabilities:
Savings accounts		0.13	%		0.17	%		0.21	%		0.26	%		0.26	%
NOW accounts		0.06	%		0.07	%		0.07	%		0.08	%		0.08	%
Money market accounts		0.19	%		0.20	%		0.26	%		0.34	%		0.36	%
Certificates of deposit		0.76	%		0.84	%		0.96	%		1.35	%		1.68	%
Brokered deposits		0.64	%		0.62	%		0.58	%		0.72	%		0.72	%
Total interest-bearing deposits		0.28	%		0.32	%		0.39	%		0.54	%		0.65	%
FHLB advances		2.03	%		2.20	%		2.19	%		2.23	%		2.22	%
Subordinated debentures		6.09	%		6.17	%		6.23	%		6.13	%		6.13	%
Total borrowings		3.20	%		3.23	%		3.20	%		3.09	%		2.94	%
Total interest-bearing liabilities		0.39	%		0.45	%		0.52	%		0.68	%		0.80	%
(1) Includes securities available for sale and securities held to maturity.
(2) Includes nonaccruing loan balances and interest received on such loans.

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

	Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Performance Ratios (annualized):	2021			2021			2021			2020			2020
(dollars in thousands)
Return on average assets (ROAA)		1.07	%		1.24	%		1.73	%		1.61	%		1.09	%
Return on average equity (ROAE)		7.12	%		8.12	%		11.13	%		10.13	%		6.90	%
Total noninterest expense	$	39,274		$	38,598		$	42,802		$	41,286		$	45,700
Less: Amortization of other intangible assets		324			324			324			324			447
Total adjusted noninterest expense	$	38,950		$	38,274		$	42,478		$	40,962		$	45,253
Net interest and dividend income	$	32,803		$	32,530		$	32,052		$	32,750		$	31,169
Total noninterest income		22,010			21,703			37,809			37,027			44,439
Total revenue	$	54,813		$	54,233		$	69,861		$	69,777		$	75,608
Efficiency ratio (1)		71.06	%		70.57	%		60.80	%		58.70	%		59.85	%
(1) This non-GAAP measure represents adjusted noninterest expense divided by total revenue

	At or for the Quarters Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Asset Quality	2021			2021			2021			2020			2020
(dollars in thousands)
Total nonperforming assets	$	36,514		$	32,732		$	32,886		$	34,696		$	40,925
Nonperforming assets to total assets		0.80	%		0.71	%		0.71	%		0.77	%		0.93	%
Allowance for loan losses to total loans		1.39	%		1.50	%		1.60	%		1.59	%		1.40	%
Net charge-offs	$	1,658		$	(175)		$	102		$	1,436		$	338
Annualized net charge-offs/average loans		0.19	%		(0.02)	%		0.01	%		0.16	%		0.04	%
Allowance for loan losses to nonperforming loans		131.50	%		158.10	%		171.20	%		162.40	%		122.86	%

HarborOne Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
Capital and Share Related	2021			2021			2021			2020			2020
(dollars in thousands, except share data)
Common stock outstanding		53,232,110			55,735,623			56,228,762			57,205,458			58,342,464
Book value per share	$	12.77		$	12.66		$	12.41		$	12.17		$	11.90
Tangible common equity:
Total stockholders' equity	$	680,032		$	705,471		$	698,073		$	696,314		$	694,103
Less: Goodwill		69,802			69,802			69,802			69,802			69,802
Less: Other intangible assets (1)		3,399			3,723			4,047			4,370			4,694
Tangible common equity	$	606,831		$	631,946		$	624,224		$	622,142		$	619,607
Tangible book value per share (2)	$	11.40		$	11.34		$	11.10		$	10.88		$	10.62
Tangible assets:
Total assets	$	4,567,094		$	4,616,422		$	4,605,958		$	4,483,615		$	4,428,319
Less: Goodwill		69,802			69,802			69,802			69,802			69,802
Less: Other intangible assets		3,399			3,723			4,047			4,370			4,694
Tangible assets	$	4,493,893		$	4,542,897		$	4,532,109		$	4,409,443		$	4,353,823
Tangible common equity / tangible assets (3)		13.50	%		13.91	%		13.77	%		14.11	%		14.23	%
(1) Other intangible assets are core deposit intangibles.
(2) This non-GAAP ratio is total stockholders' equity less goodwill and intangible assets divided by common stock outstanding.
(3) This non-GAAP ratio is total stockholders' equity less goodwill and intangible assets to total assets less goodwill and intangible assets.

HarborOne Bancorp, Inc.

Segments Statements of Net Income

(Unaudited)

	HarborOne Mortgage						HarborOne Bank
	For the Quarter Ended						For the Quarter Ended
	September 30,		June 30,		September 30,		September 30,		June 30,		September 30,
	2021		2021		2020		2021		2021		2020
	(in thousands)
Net interest and dividend income	$	792	$	855	$	1,000	$	32,494	$	32,134	$	30,599
Provision for loan losses		—		—		—		(1,627)		(4,286)		13,454
Net interest and dividend income, after provision for loan losses		792		855		1,000		34,121		36,420		17,145
Mortgage banking income:
Gain on sale of mortgage loans		12,756		14,262		34,055		—		—		—
Intersegment gain (loss)		2,366		910		645		(1,373)		(910)		(645)
Changes in mortgage servicing rights fair value		(918)		(2,133)		161		(74)		(419)		(354)
Other		3,619		3,799		3,924		263		276		334
Total mortgage banking income (loss)		17,823		16,838		38,785		(1,184)		(1,053)		(665)
Other noninterest income (loss)		25		20		(8)		6,339		5,898		6,326
Total noninterest income		17,848		16,858		38,777		5,155		4,845		5,661
Noninterest expense		12,387		14,101		19,133		26,570		24,128		26,300
Income before income taxes		6,253		3,612		20,644		12,706		17,137		(3,494)
Provision for income taxes		1,559		1,013		4,550		3,575		4,863		571
Net income	$	4,694	$	2,599	$	16,094	$	9,131	$	12,274	$	(4,065)

	HarborOne Mortgage				HarborOne Bank
	For the Nine Months Ended				For the Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2021		2020		2021		2020
	(in thousands)
Net interest and dividend income	$	2,897	$	2,020	$	95,876	$	86,248
Provision for loan losses		—		—		(5,822)		27,207
Net interest and dividend income, after provision for loan losses		2,897		2,020		101,698		59,041
Mortgage banking income:
Gain on sale of mortgage loans		51,820		77,195		—		—
Intersegment gain (loss)		3,938		2,444		(2,945)		(2,444)
Changes in mortgage servicing rights fair value		72		(3,677)		(207)		(2,014)
Other		11,633		9,619		839		1,031
Total mortgage banking income (loss)		67,463		85,581		(2,313)		(3,427)
Other noninterest income (loss)		37		(141)		17,328		19,640
Total noninterest income		67,500		85,440		15,015		16,213
Noninterest expense		44,545		47,923		75,161		75,806
Income before income taxes		25,852		39,537		41,552		(552)
Provision (benefit) for income taxes		6,905		8,667		11,873		2,199
Net income	$	18,947	$	30,870	$	29,679	$	(2,751)

HarborOne Bancorp, Inc.

COVID Loans at Risk as of September 30, 2021

(Unaudited)

	At Risk Sectors
															Percent
											Total				at risk
											at risk		Total		sector
	Retail		Office Space		Hotels		Restaurants		Recreation		sectors		loans		to total
	(dollars in thousands)
Commercial real estate	$	219,299	$	199,329	$	182,622	$	14,498	$	14,630	$	630,378	$	1,573,284	40.1	%
Commercial and industrial		28,858		14,009		2,022		27,073		3,835		75,797		414,814	18.3
Commercial construction		18,605		854		9,040		16,284		—		44,783		152,685	29.3
Total	$	266,762	$	214,192	$	193,684	$	57,855	$	18,465	$	750,958	$	2,140,783	35.1	%
Outstanding principal, active commercial deferrals	$	—	$	—	$	7,740	$	—	$	—	$	7,740	$	2,140,783	0.4	%
Outstanding principal, expired and delinquent commercial deferrals	$	—	$	515	$	242	$	—	$	—	$	757	$	2,140,783	0.0	%
PPP loans, net of fees	$	—	$	—	$	31	$	313	$	3	$	347	$	52,143	0.7	%
Nonaccrual loans	$	387	$	8,843	$	9,061	$	30	$	—	$	18,321	$	36,486	50.2	%

															% 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	61	$	222,393	1	$	515	2	$	7,740	64	$	230,648	$	1,573,284	0.5	%
Commercial and industrial	83		37,944	2		261	—		—	85		38,205		414,814	—
Commercial construction	—		—	—		—	—		—	—		—		152,685	—
Total commercial loans	144	$	260,337	3	$	776	2	$	7,740	149	$	268,853	$	2,140,783	0.4	%
1-4 Family	125	$	34,721	3	$	452	1	$	177	129	$	35,350	$	993,726	0.0	%
Home Equity	12		772	4		184	—		—	16		956		135,146	—
Residential construction	—		—	—		—	—		—	—		—		31,817	—
Total residential real estate	137	$	35,493	7	$	636	1	$	177	145	$	36,306	$	1,160,689	0.0	%
Consumer	311	$	7,068	6	$	112	—	$	—	317	$	7,180	$	156,272	—
Total loans	592	$	302,898	16	$	1,524	3	$	7,917	611	$	312,339	$	3,457,744	0.2	%

HarborOne Bancorp, Inc.

COVID Loans at Risk as of September 30, 2021

(Unaudited)

	Active deferrals expiring by quarter
(dollars in thousands)	12/31/2021		3/31/2022		6/30/2022		9/30/2022		Total
Commercial real estate	$	7,740	$	—	$	—	$	—	$	7,740
Commercial and industrial		—		—		—		—		—
Commercial construction		—		—		—		—		—
Total commercial loans	$	7,740	$	—	$	—	$	—	$	7,740
1-4 Family	$	177	$	—	$	—	$	—	$	177
Home equity		—		—		—		—		—
Residential construction		—		—		—		—		—
Total residential real estate	$	177	$	—	$	—	$	—	$	177
Consumer	$	—	$	—	$	—	$	—	$	—
Total loans	$	7,917	$	—	$	—	$	—	$	7,917