HarborOne Bancorp (HONE) Investor Presentation summary

Financial highlights and performance

• Reported Q2 2024 net income of $7.3 million and diluted EPS of $0.18, with tangible book value at $11.63.

• Total assets reached $5.8 billion, loans $4.8 billion, and deposits $4.5 billion as of Q2 2024.

• Net interest margin improved to 2.31% in Q2 2024, up from 2.25% in Q1 2024.

• Repurchased 671,453 shares for $6.9 million in Q2 2024; ongoing buyback program targets 2.2 million shares or $20 million.

• Annual dividend increased by 6.7% in Q1 2024, reflecting continued capital returns.

Asset quality, credit, and capital management

• Nonperforming loans to total loans improved to 0.20%, with strong asset quality maintained.

• Allowance for credit losses at $49.1 million, with a Q2 2024 ACL rate of 1.02%.

• Net charge-offs remained low at 0.02% of average loans in Q2 2024.

• Tier 1 leverage ratio at 9.7% and tangible common equity ratio at 9.03%, well above regulatory minimums.

• Total capital ratio at 12.8% as of June 30, 2024.

Loan and deposit portfolio

• Loan portfolio is 49% commercial real estate, 32% residential 1-4 family, 10% C&I, 5% construction, and 4% consumer.

• Commercial loans grew from $2.1 billion in 2020 to $3.1 billion in Q2 2024, with a focus on high-quality, relationship-based lending.

• CRE portfolio of $2.4 billion is diversified by property type and geography, with conservative underwriting and low delinquency.

• Residential mortgage and HELOC portfolios show high average FICO scores (771 and 748, respectively) and low delinquency rates.

• Deposit base is diversified, with 31% CDs, 25% money market, 22% savings, and 22% DDA/NOW; 75% of balances have tenure over 5 years.