HarborOne Bancorp, Inc. Announces 2022 Fourth Quarter Earnings

BROCKTON, Mass.–(BUSINESS WIRE)–HarborOne Bancorp, Inc. (the “Company” or “HarborOne”) (NASDAQ: HONE), the holding company for HarborOne Bank (the “Bank”), announced net income of $45.6 million, or $0.97 per diluted share, for the year ended December 31, 2022, a decrease of $12.9 million, or 22.1%, compared to net income of $58.5 million, or $1.14 per diluted share, for the year ended December 31, 2021. For the fourth quarter of 2022, net income was $9.6 million, or $0.21 per diluted share, compared to $13.8 million, or $0.30 per diluted share, for the preceding quarter and $12.6 million, or $0.25 per diluted share, for the quarter ended December 31, 2021.

Selected Financial Highlights:

Net interest income up $17.6 million, or 13.4% year over year, driven by higher rates and loan growth.

Strong asset quality; nonperforming loans to total loans was 0.32% compared to 1.00% last year.

Robust loan growth of $941.9 million, or 26.1%, year over year.

Total deposit growth of $506.8 million, or 13.8% and core deposit growth of $335.4 million, or 11.0%.

Despite a reduction in mortgage banking income, HarborOne Mortgage posted positive earnings in 2022.

Continued share repurchase program.

“I am very proud of our team’s 2022 accomplishments. Despite a challenging rate environment, our focused customer engagement produced loan growth of 26%, deposit growth of 14%, and net interest income growth of 13% ; all while reducing expenses by 13%,” said Joseph F. Casey, President and Chief Executive Officer. He added: “Our mortgage team, in particular, faced the rapidly rising mortgage rates and dramatic reduction in refinance volume head on, implementing significant cost reductions in order to maintain profitability for the year.”

Net Interest Income

The Company’s net interest and dividend income was $39.2 million for the quarter ended December 31, 2022, compared to $39.3 million for the quarter ended September 30, 2022, and up $5.2 million, or 15.3%, from $34.0 million for the quarter ended December 31, 2021. The tax equivalent interest rate spread and net interest margin were 2.88% and 3.23%, respectively, for the quarter ended December 31, 2022, compared to 3.30% and 3.47%, respectively, for the quarter ended September 30, 2022, and 3.10% and 3.19%, respectively, for the quarter ended December 31, 2021. On a linked-quarter basis, the decreases in net interest and dividend income, tax equivalent interest rate spread, and net interest margin primarily reflect higher rates on deposits partially offset by increased loan balances and yields. The cost of funds was 114 basis points for the quarter ended December 31, 2022, compared to 51 basis points for the preceding quarter.

The $7.4 million increase in total interest and dividend income on a linked-quarter basis reflected a 34-basis-point increase in the yield on interest-earning assets and a $333.7 million increase in average earning assets. The yield on loans increased 36 basis points, from 4.11% to 4.47%. The yield on investments increased 9 basis points, from 2.00% to 2.09%.

The increase in net interest and dividend income from the prior year quarter reflects an increase of $15.6 million, or 42.8%, in total interest and dividend income and an increase of $10.4 million, or 437.4%, in total interest expense. The changes reflect rate and volume changes in both interest-bearing assets and liabilities. The yield on interest-earning assets increased 86 basis points, while the average balance increased $610.8 million, and the cost of interest-bearing liabilities increased 108 basis points, while the average balance increased $620.0 million.

Noninterest Income

Total noninterest income decreased $4.3, or 30.5%, to $9.9 million for the quarter ended December 31, 2022, from $14.2 million for the quarter ended September 30, 2022. Mortgage loan closings for the quarter ended December 31, 2022 were $222.4 million with a gain on loan sales of $2.3 million, compared to $250.5 million in mortgage closings and $3.8 million in gain on sales for the preceding quarter. Deposit account fees were $5.0 million for the quarter ended December 31, 2022, compared to $4.9 million for the quarter ended September 30, 2022. Other income for the quarter ended December 31, 2022 increased $1.6 million, primarily reflecting a $1.2 million increase in swap fee income.

The decrease in the fair value of mortgage servicing rights for the three months ended December 31, 2022 was $2.1 million, as compared to an increase of $2.6 million in the fair value of mortgage servicing rights for the three months ended September 30, 2022. The valuation was negatively impacted by key benchmark mortgage rates used in the valuation that declined, as well as an increase in the discount rate to reflect secondary market servicing conditions. The impact of principal payments on the underlying mortgages on the mortgage servicing rights was $570,000 and $747,000 for the quarters ended December 31, 2022 and September 30, 2022, respectively.

Total noninterest income decreased $9.3 million, or 48.3%, compared to the quarter ended December 31, 2021, primarily due to a $11.2 million, or 84.9%, decrease in mortgage banking income, driven by the decrease in loan closings and narrowing gain-on-sale margins.

Noninterest Expense

Total noninterest expenses were $34.6 million for the quarter ended December 31, 2022, an increase of $171,000, or 0.5%, from the quarter ended September 30, 2022. Other expenses increased $1.1 million, or 31.9% for the quarter ended December 31 2022, primarily as a result of a legal settlement. In the fourth quarter of 2022, the Company reached an agreement-in-principle to settle a purported class action lawsuit concerning overdraft fees on re-presented transactions. The matter was filed in the Massachusetts Superior Court in June 2022, and it is expected to be refiled in federal court for final settlement purposes, where the settlement remains subject to court approval. As of December 31, 2022, the Company estimated the settlement expense, including related costs, to be $950,000. The increase was offset by an $887,000, or 4.2%, decrease in compensation expense, primarily reflecting a $715,000 decrease in salaries and mortgage origination commissions.

Total noninterest expenses decreased $3.5 million, or 9.3%, from the quarter ended December 30, 2021. Compensation and benefits decreased $4.5 million and loan expenses decreased $563,000, consistent with the decrease in residential mortgage loan closings and corresponding decrease in mortgage origination commissions. The decrease in compensation and benefits also reflects the impact of proactive cost reduction measures taken at HarborOne Mortgage, LLC beginning in the second quarter of 2021.

Income Tax Provision

The effective tax rate for the quarter and year ended December 31, 2022 was 22.4% and 26.1%, respectively, compared to 23.2% and 27.3% for the quarter and year ended December 31, 2021. The 2022 effective tax rate was impacted by a tax benefit recorded for Industrial Revenue Bonds and a reserve release upon the expiration of the statute of limitations.

Asset Quality and Allowance for Credit Losses

Effective January 1, 2022, the Company adopted Accounting Standards Update No. 2016-13, commonly referred to as CECL, which requires the measurement of expected lifetime credit losses for financial assets measured at amortized cost, as well as unfunded commitments that are considered off-balance sheet credit exposures. CECL requires that the allowance for credit losses (“ACL”) be calculated based on current expected credit losses over the full remaining expected life of the financial assets and also consider expected future changes in macroeconomic conditions. Upon adoption of CECL on January 1, 2022, the Company’s ACL on loans decreased by $1.3 million, and the ACL on unfunded commitments increased by $3.9 million, for a net increase of $2.6 million. The after-tax impact of $1.9 million was recognized as a one-time, cumulative-effect adjustment that decreased retained earnings.

Credit quality performance continued to be strong with total nonperforming assets of $14.8 million at December 31, 2022, compared to $23.4 million at September 30, 2022 and $36.2 million at December 31, 2021. Nonperforming assets as a percentage of total assets were 0.28% at December 31, 2022, 0.47% at September 30, 2022, and 0.79% at December 31, 2021. During 2022, two large commercial credits were resolved, reducing nonperforming assets significantly.

The provision for funded loan credit losses for the quarter and year ended December 31, 2022 was $2.7 million and $4.7 million, respectively, and reflects provisioning for loan growth partially offset by a reduction in pandemic-related uncertainty. Net charge-offs totaled $2.1 million, or 0.19%, and $3.5 million, or 0.09%, of average loans outstanding on an annualized basis, for the quarter and year ended December 31, 2022, respectively. Net recoveries totaled $799,000, or 0.08% of average loans outstanding on an annualized basis, for the quarter ended September 30, 2022, and net charge-offs totaled $1.2 million, or 0.13% of average loans outstanding on an annualized basis, for the quarter ended December 31, 2021.

The ACL was $45.2 million, or 0.99% of total loans, at December 31, 2022, compared to $44.6 million, or 1.06% of total loans, at September 30, 2022 and an allowance for loss under the incurred loss model of $45.4 million, or 1.26% of total loans, at December 31, 2021. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheets, amounted to $4.9 million at December 31, 2022 as compared to $5.5 million at September 30, 2022, reflecting a negative provision of $575,000 for the quarter ended December 31, 2022. For the year ended December 31, 2022, the provision for unfunded commitments was $966,000, and there was no ACL on unfunded commitments at December 31, 2021. The decrease from the prior quarter primarily reflects the movement of commercial loans from construction loans to permanent loans.

We have not experienced any significant negative trends in the at-risk sectors previously identified in response to conditions that developed during the COVID-19 pandemic; however management continues to monitor certain credit types within those sectors that may be susceptible to increased credit risk as a result of trends that were precipitated by the COVID-19 pandemic and may be exacerbated by current economic conditions. Management is focused on loans secured by business-oriented hotels, non-anchored retail space and metro office space. As of December 31, 2022, business-oriented hotels loans included 12 loans with a total outstanding balance of $86.0 million, non-anchored retail space loans included 28 loans with a total outstanding balance of $40.5 million, and metro office space loans included two loans with a total outstanding balance of $14.9 million. As of December 31, 2022 there was one business-oriented hotel credit with a carrying value of $2.1 million that was rated substandard and on nonaccrual. This credit was provided a principal deferral that resulted in a troubled debt restructuring designation in the third quarter. The other loans in these groups were performing in accordance with their terms.

Balance Sheet

Total assets increased $371.9 million, or 7.5%, to $5.36 billion at December 31, 2022, from $4.99 billion at September 30, 2022. The increase primarily reflects an increase of $352.3 million in loans. Securities available for sale were negatively impacted by unrealized losses of $68.3 million as of December 31, 2022, as compared to $70.4 million of unrealized losses as of September 30, 2022 and $3.6 million of unrealized losses as of December 31, 2021.

Loans increased $352.3 million, or 8.4%, to $4.55 billion at December 31, 2022, from $4.20 billion at September 30, 2022. The increase in loans for the three months ended December 31, 2022 was primarily due to increases in commercial real estate loans of $208.4 million, commercial and industrial loans of $27.2 million, commercial construction loans of $14.2 million, and residential real estate loans of $113.5 million, partially offset by decreases in consumer loans of $11.0 million.

Total deposits were $4.19 billion at December 31, 2022 and $3.88 billion at September 30, 2022. Compared to the prior quarter, non-certificate accounts increased $106.7 million, and term certificate accounts increased $199.7 million. FHLB borrowings increased $55.0 million to $400.7 million at December 31, 2022 from $345.7 million at September 30, 2022. At December 31, 2022, FHLB borrowings were primarily short-term borrowings.

Total stockholders’ equity was $617.0 million at December 31, 2022, compared to $611.4 million at September 30, 2022 and $679.3 million at December 31, 2021. Stockholders’ equity increased 0.9% when compared to the prior quarter, as earnings were offset by share repurchases. The Company repurchased 349,738 shares at an average price of $13.63 during the three months ended December 31, 2022 and announced a fifth share repurchase program on September 21, 2022 to commence following the completion of the share repurchase program announced on April 12, 2022. The tangible-common-equity-to-tangible-assets ratio was 10.31% at December 31, 2022, 10.97% at September 30, 2022, and 13.53% at December 31, 2021. At December 31, 2022, 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 31 full-service branches located in Massachusetts and Rhode Island, and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. HarborOne Bank also provides a range of educational services through “HarborOne U,” with classes on small business, financial literacy and personal enrichment at two campuses located adjacent to our Brockton and Mansfield locations. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, is a full-service mortgage lender with 26 offices in Maine, Massachusetts, Rhode Island, and New Hampshire, and is licensed to lend in six additional states.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in general business and economic conditions (including inflation) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; increases in loan default and charge-off rates; changes related to the discontinuation and replacement of LIBOR; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; acquisitions may not produce results at levels or within time frames originally anticipated; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, the ongoing COVID-19 pandemic, and future pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the SEC, which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures

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

 

HarborOne Bancorp, Inc.

Consolidated Balance Sheet Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands)

 

2022

 

2022

 

2022

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

39,712

 

 

$

39,910

 

 

$

35,843

 

 

$

41,862

 

 

$

35,549

 

Short-term investments

 

 

58,305

 

 

 

46,044

 

 

 

48,495

 

 

 

97,870

 

 

 

159,170

 

Total cash and cash equivalents

 

 

98,017

 

 

 

85,954

 

 

 

84,338

 

 

 

139,732

 

 

 

194,719

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale, at fair value

 

 

301,149

 

 

 

304,852

 

 

 

334,398

 

 

 

361,529

 

 

 

394,036

 

Securities held to maturity, at amortized cost

 

 

19,949

 

 

 

15,000

 

 

 

10,000

 

 

 

 

 

 

 

Federal Home Loan Bank stock, at cost

 

 

20,071

 

 

 

15,973

 

 

 

5,625

 

 

 

5,931

 

 

 

5,931

 

Asset held for sale

 

 

 

 

 

 

 

 

 

 

 

678

 

 

 

881

 

Loans held for sale, at fair value

 

 

18,544

 

 

 

18,805

 

 

 

31,679

 

 

 

25,690

 

 

 

45,642

 

Loans:

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

2,250,344

 

 

 

2,041,905

 

 

 

1,847,619

 

 

 

1,816,484

 

 

 

1,699,877

 

Commercial construction

 

 

199,311

 

 

 

185,062

 

 

 

158,762

 

 

 

154,059

 

 

 

136,563

 

Commercial and industrial

 

 

424,275

 

 

 

397,112

 

 

 

407,182

 

 

 

410,787

 

 

 

421,608

 

Total commercial loans

 

 

2,873,930

 

 

 

2,624,079

 

 

 

2,413,563

 

 

 

2,381,330

 

 

 

2,258,048

 

Residential real estate

 

 

1,634,319

 

 

 

1,520,809

 

 

 

1,423,074

 

 

 

1,252,920

 

 

 

1,217,980

 

Consumer

 

 

41,421

 

 

 

52,466

 

 

 

75,312

 

 

 

103,100

 

 

 

131,705

 

Loans

 

 

4,549,670

 

 

 

4,197,354

 

 

 

3,911,949

 

 

 

3,737,350

 

 

 

3,607,733

 

Less: Allowance for credit losses on loans

 

 

(45,236

)

 

 

(44,621

)

 

 

(43,560

)

 

 

(41,765

)

 

 

(45,377

)

Net loans

 

 

4,504,434

 

 

 

4,152,733

 

 

 

3,868,389

 

 

 

3,695,585

 

 

 

3,562,356

 

Mortgage servicing rights, at fair value

 

 

48,138

 

 

 

49,861

 

 

 

47,130

 

 

 

45,043

 

 

 

38,268

 

Goodwill

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

 

 

69,802

 

Other intangible assets

 

 

2,272

 

 

 

2,461

 

 

 

2,695

 

 

 

2,930

 

 

 

3,164

 

Other assets

 

 

277,169

 

 

 

272,202

 

 

 

249,988

 

 

 

244,405

 

 

 

238,606

 

Total assets

 

$

5,359,545

 

 

$

4,987,643

 

 

$

4,704,044

 

 

$

4,591,325

 

 

$

4,553,405

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Demand deposit accounts

 

$

762,576

 

 

$

795,945

 

 

$

775,154

 

 

$

771,172

 

 

$

743,051

 

NOW accounts

 

 

297,692

 

 

 

308,191

 

 

 

316,839

 

 

 

310,090

 

 

 

313,733

 

Regular savings and club accounts

 

 

1,468,172

 

 

 

1,289,825

 

 

 

1,282,913

 

 

 

1,218,656

 

 

 

1,138,979

 

Money market deposit accounts

 

 

861,704

 

 

 

889,517

 

 

 

885,673

 

 

 

864,316

 

 

 

858,970

 

Term certificate accounts

 

 

799,355

 

 

 

599,632

 

 

 

587,354

 

 

 

597,746

 

 

 

627,916

 

Total deposits

 

 

4,189,499

 

 

 

3,883,110

 

 

 

3,847,933

 

 

 

3,761,980

 

 

 

3,682,649

 

Short-term borrowed funds

 

 

385,000

 

 

 

330,000

 

 

 

90,000

 

 

 

 

 

 

 

Long-term borrowed funds

 

 

15,675

 

 

 

15,684

 

 

 

15,693

 

 

 

55,702

 

 

 

55,711

 

Subordinated debt

 

 

34,285

 

 

 

34,254

 

 

 

34,222

 

 

 

34,191

 

 

 

34,159

 

Other liabilities and accrued expenses

 

 

118,110

 

 

 

113,225

 

 

 

91,718

 

 

 

90,387

 

 

 

101,625

 

Total liabilities

 

 

4,742,569

 

 

 

4,376,273

 

 

 

4,079,566

 

 

 

3,942,260

 

 

 

3,874,144

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

596

 

 

 

593

 

 

 

593

 

 

 

591

 

 

 

585

 

Additional paid-in capital

 

 

483,031

 

 

 

480,617

 

 

 

479,519

 

 

 

477,302

 

 

 

469,934

 

Unearned compensation – ESOP

 

 

(27,623

)

 

 

(28,083

)

 

 

(28,542

)

 

 

(29,002

)

 

 

(29,461

)

Retained earnings

 

 

356,438

 

 

 

350,049

 

 

 

339,471

 

 

 

332,734

 

 

 

325,699

 

Treasury stock

 

 

(148,384

)

 

 

(143,125

)

 

 

(132,296

)

 

 

(113,513

)

 

 

(85,859

)

Accumulated other comprehensive loss

 

 

(47,082

)

 

 

(48,681

)

 

 

(34,267

)

 

 

(19,047

)

 

 

(1,637

)

Total stockholders’ equity

 

 

616,976

 

 

 

611,370

 

 

 

624,478

 

 

 

649,065

 

 

 

679,261

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

5,359,545

 

 

$

4,987,643

 

 

$

4,704,044

 

 

$

4,591,325

 

 

$

4,553,405

 

HarborOne Bancorp, Inc.

Consolidated Statements of Net Income – Trend

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

(in thousands, except share data)

 

2022

 

2022

 

2022

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

49,177

 

 

$

42,065

 

$

37,522

 

$

33,576

 

$

34,177

 

Interest on loans held for sale

 

 

334

 

 

 

377

 

 

331

 

 

264

 

 

501

 

Interest on securities

 

 

2,045

 

 

 

1,971

 

 

1,873

 

 

1,701

 

 

1,541

 

Other interest and dividend income

 

 

359

 

 

 

143

 

 

131

 

 

61

 

 

134

 

Total interest and dividend income

 

 

51,915

 

 

 

44,556

 

 

39,857

 

 

35,602

 

 

36,353

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

8,499

 

 

 

3,491

 

 

2,019

 

 

1,621

 

 

1,651

 

Interest on FHLB borrowings

 

 

3,703

 

 

 

1,209

 

 

119

 

 

188

 

 

193

 

Interest on subordinated debentures

 

 

524

 

 

 

524

 

 

524

 

 

523

 

 

524

 

Total interest expense

 

 

12,726

 

 

 

5,224

 

 

2,662

 

 

2,332

 

 

2,368

 

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income

 

 

39,189

 

 

 

39,332

 

 

37,195

 

 

33,270

 

 

33,985

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for credit losses

 

 

2,108

 

 

 

668

 

 

2,546

 

 

338

 

 

(1,436

)

 

 

 

 

 

 

 

 

 

 

 

Net interest and dividend income, after provision (benefit) for credit losses

 

 

37,081

 

 

 

38,664

 

 

34,649

 

 

32,932

 

 

35,421

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Mortgage banking income:

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgage loans

 

 

2,301

 

 

 

3,809

 

 

4,538

 

 

5,322

 

 

10,063

 

Changes in mortgage servicing rights fair value

 

 

(2,631

)

 

 

1,816

 

 

862

 

 

5,285

 

 

(245

)

Other

 

 

2,325

 

 

 

2,453

 

 

2,612

 

 

2,558

 

 

3,359

 

Total mortgage banking income

 

 

1,995

 

 

 

8,078

 

 

8,012

 

 

13,165

 

 

13,177

 

 

 

 

 

 

 

 

 

 

 

 

Deposit account fees

 

 

5,031

 

 

 

4,870

 

 

4,892

 

 

4,472

 

 

4,783

 

Income on retirement plan annuities

 

 

118

 

 

 

119

 

 

112

 

 

107

 

 

109

 

Gain on sale and call of securities, net

 

 

 

 

 

 

 

 

 

 

 

 

Bank-owned life insurance income

 

 

501

 

 

 

503

 

 

494

 

 

483

 

 

506

 

Other income

 

 

2,255

 

 

 

675

 

 

593

 

 

834

 

 

589

 

Total noninterest income

 

 

9,900

 

 

 

14,245

 

 

14,103

 

 

19,061

 

 

19,164

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expenses:

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

20,104

 

 

 

20,991

 

 

21,455

 

 

20,723

 

 

24,564

 

Occupancy and equipment

 

 

4,935

 

 

 

4,829

 

 

4,575

 

 

5,428

 

 

4,923

 

Data processing

 

 

2,359

 

 

 

2,311

 

 

2,259

 

 

2,241

 

 

2,244

 

Loan expense

 

 

169

 

 

 

355

 

 

385

 

 

478

 

 

732

 

Marketing

 

 

862

 

 

 

850

 

 

986

 

 

1,218

 

 

1,120

 

Professional fees

 

 

1,446

 

 

 

1,457

 

 

1,680

 

 

1,539

 

 

1,443

 

Deposit insurance

 

 

385

 

 

 

357

 

 

354

 

 

349

 

 

345

 

Prepayment penalties on Federal Home Loan Bank advances

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

4,384

 

 

 

3,323

 

 

3,260

 

 

2,859

 

 

2,817

 

Total noninterest expenses

 

 

34,644

 

 

 

34,473

 

 

34,954

 

 

34,835

 

 

38,188

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

12,337

 

 

 

18,436

 

 

13,798

 

 

17,158

 

 

16,397

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

2,760

 

 

 

4,678

 

 

3,811

 

 

4,891

 

 

3,807

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

9,577

 

 

$

13,758

 

$

9,987

 

$

12,267

 

$

12,590

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

 

$

0.30

 

$

0.21

 

$

0.26

 

$

0.26

 

Diluted

 

$

0.21

 

 

$

0.30

 

$

0.21

 

$

0.25

 

$

0.25

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

45,321,491

 

 

 

45,830,737

 

 

46,980,830

 

 

47,836,410

 

 

48,918,539

 

Diluted

 

 

45,861,658

 

 

 

46,420,527

 

 

47,536,033

 

 

48,690,420

 

 

49,828,379

 

Contacts

Linda Simmons, EVP, CFO (508) 895-1379

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