HarborOne Bancorp, Inc. (HONE): Análisis PESTLE [Actualizado en enero de 2025]

En el panorama dinámico de la banca regional, Harborone Bancorp, Inc. (Hone) navega por un complejo ecosistema de desafíos y oportunidades, donde las regulaciones políticas, los cambios económicos, las innovaciones tecnológicas y los cambios sociales convergen para dar forma a su trayectoria estratégica. Este análisis integral de la mano presenta los factores externos multifacéticos que influyen en la resiliencia operativa de Hone, revelando cómo una comprensión matizada de la dinámica política, económica, sociológica, tecnológica, legal y ambiental puede transformar los obstáculos potenciales en ventajas estratégicas para esta institución financiera basada en Massachusetts.

Harborone Bancorp, Inc. (Hone) - Análisis de mortero: factores políticos

Impacto en las regulaciones bancarias estatales de Massachusetts

La División de Bancos de Massachusetts hace cumplir los requisitos regulatorios estrictos para los bancos estatales. A partir de 2024, Harborone debe cumplir con:

Aspecto regulatorio	Requisitos específicos
Adecuación de capital	Relación de capital de nivel 1 mínimo del 8%
Requisitos de liquidez	Mantener la relación de cobertura de liquidez del 100%
Protección al consumidor	Divulgación estricta y pautas de préstamos justos

Influencia de la política monetaria de la Reserva Federal

Las políticas monetarias de la Reserva Federal afectan directamente las estrategias de préstamos de Harborone. Las métricas clave incluyen:

• Tasa actual de fondos federales: 5.25% - 5.50%
• Tasa de préstamo principal: 8.50%
• Margen de interés neto para Harborone: 3.12%

Cumplimiento de la Ley de Reinversión Comunitaria

Calificación de rendimiento CRA de Harborone a partir de 2023: Satisfactorio. Métricas de cumplimiento específicas:

CRA métrica	Valor de rendimiento
Préstamos de desarrollo comunitario	$ 42.3 millones
Inversión calificada	$ 18.7 millones
Actividades de servicio comunitario	37 programas distintos

Cambios de supervisión bancaria federal

El enfoque regulatorio bancario de la administración federal actual incluye:

• Requisitos de seguridad bancaria digital mejoradas
• Mayor informes sobre riesgos financieros relacionados con el clima
• Protocolos más estrictos contra el lavado de dinero

Harborone Bancorp, Inc. (Hone) - Análisis de mortero: factores económicos

Condiciones económicas regionales en Massachusetts y Nueva Inglaterra

PIB de Massachusetts en el tercer trimestre de 2023: $ 595.8 mil millones Tasa de crecimiento económico regional de Nueva Inglaterra: 2.1% en 2023 Tasa de desempleo en Massachusetts: 3.1% a diciembre de 2023

Indicador económico	Valor de Massachusetts	Valor de Nueva Inglaterra
Tasa de crecimiento del PIB	2.3%	2.1%
Ingresos familiares promedio	$89,645	$81,215
Tasa de inflación	3.2%	3.3%

Fluctuaciones de tasa de interés

Tasa de fondos federales a partir de enero de 2024: 5.33% Margen de interés neto de Harborone Bancorp: 3.02% Tasa de préstamo promedio para préstamos comerciales: 7.5%

Tipo de préstamo	Tasa de interés	Volumen ($ M)
Inmobiliario comercial	7.25%	$ 425.6M
Préstamos para pequeñas empresas	8.15%	$ 187.3m
Préstamos al consumo	6.75%	$ 213.7M

Tendencias del mercado inmobiliario de pequeñas empresas y comerciales

Conteo de pequeñas empresas de Massachusetts: 689,913 Tasa de vacantes de bienes raíces comerciales en Boston: 12.4% Préstamo de bienes raíces comerciales totales: $ 1.2 mil millones

Gasto y empleo del consumidor

Gasto del consumidor de Massachusetts en 2023: $ 315.6 mil millones Tasa de empleo del sector de servicios: 68.3% Crecimiento de las ventas minoristas: 4.2%

Sector laboral	Total de empleados	Índice de crecimiento
Tecnología	247,600	3.7%
Cuidado de la salud	398,450	2.9%
Servicios financieros	156,300	2.1%

Harborone Bancorp, Inc. (Hone) - Análisis de mortero: factores sociales

Cambios demográficos en las preferencias de los clientes de Banking de impacto de Massachusetts

Demografía de la población de Massachusetts a partir de 2024:

Grupo de edad	Porcentaje de población	Preferencia de servicio bancario
18-34 años	22.4%	Banca digital
35-54 años	29.6%	Servicios bancarios híbridos
55-64 años	15.2%	Banca de rama tradicional
Más de 65 años	16.8%	Servicios bancarios en persona

Creciente demanda de servicios bancarios digitales entre las generaciones más jóvenes

Tasas de adopción de banca digital en Massachusetts:

• Uso de la banca móvil: 73.5%
• Penetración bancaria en línea: 82.3%
• Transacciones de pago digital: 68.9%

Mayor enfoque en el desarrollo económico bancario y local basado en la comunidad

Categoría de inversión comunitaria	Asignación 2024
Préstamos para pequeñas empresas	$ 42.6 millones
Proyectos de desarrollo comunitario local	$ 18.3 millones
Soporte de organización sin fines de lucro	$ 7.9 millones

Cambiar la dinámica de la fuerza laboral que afecta la adquisición y retención del talento

Estadísticas de la fuerza laboral de Harborone Bancorp:

• Total de empleados: 723
• Edad promedio del empleado: 41.3 años
• Tasa de retención de empleados: 86.5%
• Porcentaje de trabajo remoto: 42%

Categoría de habilidad	Nivel de demanda	Prioridad de contratación
Tecnología de banca digital	Alto	Crítico
Experiencia del cliente	Medio-alto	Alto
Ciberseguridad	Alto	Crítico

Harborone Bancorp, Inc. (Hone) - Análisis de mortero: factores tecnológicos

Transformación digital continua de plataformas y servicios bancarios

Harborone Bancorp ha invertido $ 3.2 millones en iniciativas de transformación digital en 2023. La plataforma de banca digital del banco procesó 1,2 millones de transacciones en línea en el cuarto trimestre de 2023, lo que representa un aumento del 22% respecto al año anterior.

Métricas de transformación digital	2023 datos
Inversión digital total	$ 3.2 millones
Transacciones en línea	1.2 millones (Q4)
Crecimiento de la plataforma digital	22% año tras año

Inversión en tecnologías de ciberseguridad y protección de datos

En 2023, Harborone asignó $ 1.7 millones específicamente a la infraestructura de ciberseguridad. El banco implementó sistemas avanzados de detección de amenazas que cubren el 98.5% de sus puntos finales bancarios digitales.

Inversión de ciberseguridad	2023 métricas
Presupuesto de ciberseguridad	$ 1.7 millones
Cobertura de protección de punto final	98.5%
Tiempo de respuesta a incidentes de seguridad	12 minutos

Implementación de IA y aprendizaje automático

Harborone implementó algoritmos de evaluación de riesgos impulsados ​​por la IA que procesan 85,000 solicitudes de crédito mensualmente. Los modelos de aprendizaje automático reducen el tiempo de evaluación del riesgo de crédito en un 47% en 2023.

AI/Métricas de aprendizaje automático	2023 rendimiento
Solicitudes de crédito mensuales procesadas	85,000
Reducción del tiempo de evaluación de riesgos	47%
Precisión predictiva	92.3%

Mejoras de la plataforma bancaria móvil y en línea

La plataforma de banca móvil de Harborone experimentó un crecimiento del usuario del 35% en 2023. El banco procesó 780,000 transacciones móviles por mes, con una clasificación de satisfacción del usuario de 4.6/5.

Métricas de banca móvil	2023 datos
Crecimiento de los usuarios de la plataforma móvil	35%
Transacciones móviles mensuales	780,000
Calificación de satisfacción del usuario	4.6/5

Harborone Bancorp, Inc. (Hone) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones bancarias y los requisitos de información financiera

Harborone Bancorp, Inc. está sujeto a una supervisión regulatoria integral de múltiples agencias federales y estatales. A partir de 2024, el banco debe adherirse a las siguientes métricas clave de cumplimiento regulatorio:

Agencia reguladora	Requisito de cumplimiento	Métrica específica
Reserva federal	Relación de adecuación de capital	12.4% a partir del cuarto trimestre 2023
FDIC	Relación de cobertura de liquidez	Nivel de cumplimiento del 138%
SEGUNDO	Precisión de informes financieros	Cero debilidades materiales reportadas

Desafíos legales potenciales en fusiones y actividades de adquisición

Evaluación de riesgos legales para actividades de M&A:

• Total de reservas legales asignadas para posibles litigios de M&A: $ 2.3 millones
• Retenador de asesoramiento legal externo: $ 750,000 anualmente
• Cumplimiento Presupuesto de diligencia debida: $ 1.1 millones

Leyes de protección del consumidor que rigen las prácticas bancarias

Ley de protección del consumidor	Gasto de cumplimiento	Acciones de cumplimiento
Ley de la verdad en los préstamos	Infraestructura de cumplimiento de $ 450,000	Cero violaciones en 2023
Ley de informes de crédito justo	$ 375,000 sistemas de monitoreo	Una corrección menor solicitada

Escrutinio regulatorio de la gobernanza y transparencia de la institución financiera

Métricas de cumplimiento de la gobernanza:

• Miembros de la Junta Independiente: 7 de 9 miembros de la Junta Total
• Costo anual de auditoría de gobierno corporativo: $ 525,000
• Puntuación de cumplimiento de la transparencia del informe: 94.6%

Harborone Bancorp, Inc. (Hone) - Análisis de mortero: factores ambientales

Prácticas bancarias sostenibles e iniciativas de financiamiento verde

Harborone Bancorp informó $ 42.5 millones en cartera de préstamos verdes a partir del cuarto trimestre de 2023. Los compromisos de finanzas sostenibles del banco incluyen:

Iniciativa verde	Monto de la inversión	Año objetivo
Préstamos de energía renovable	$ 18.3 millones	2024
Hipotecas energéticamente eficientes	$ 12.7 millones	2024
Financiación del proyecto solar	$ 11.5 millones	2024

Evaluación de riesgos climáticos en préstamos comerciales y residenciales

Métricas de evaluación del riesgo climático para la cartera de préstamos de Harborone:

Categoría de riesgo	Valor de cartera evaluado	Presupuesto de mitigación de riesgos
Préstamo de propiedad costera	$ 237.6 millones	$ 4.2 millones
Préstamos comerciales de la zona de inundación	$ 156.9 millones	$ 3.7 millones

Mejoras de eficiencia energética en operaciones corporativas

Inversiones de eficiencia energética corporativa para 2024:

• Gasto total de capital de eficiencia energética: $ 2.1 millones
• Reducción del consumo de energía proyectado: 22.5%
• Objetivo de reducción de emisiones de carbono: 18.3%

Cumplimiento ambiental y compromisos de responsabilidad social corporativa

Área de cumplimiento	Inversión	Porcentaje de cumplimiento
Cumplimiento regulatorio ambiental	$ 1.6 millones	98.7%
Informes de sostenibilidad	$450,000	100%
Programas de compensación de carbono	$750,000	95.4%

HarborOne Bancorp, Inc. (HONE) - PESTLE Analysis: Social factors

The merger creates the largest mid-sized bank in the Greater Boston area, changing the market structure.

The most significant social and market structure change for HarborOne Bancorp, Inc. is its merger with Eastern Bankshares, Inc., which became effective on November 1, 2025. This transaction transforms the regional banking landscape. The combined entity creates a powerhouse with approximately $31 billion in total assets, solidifying its position as the largest Massachusetts-based bank.

This scale shift has a direct social impact on customers and the community. While Eastern Bankshares, Inc. gains a larger footprint, the merger is expected to result in some branch closures due to overlap, which can disrupt local banking access for some customers. For instance, the 64 Broad St. branch in Boston, Massachusetts, was expected to close and consolidate into a nearby Eastern Bank branch (0.30 miles away).

Here is a quick comparison of the two entities' scale at the time of the merger announcement:

Metric	HarborOne Bancorp (Pre-Merger)	Eastern Bankshares (Pre-Merger)	Combined Entity (Pro Forma 2025)
Total Assets	~$5.7 Billion (as of March 31, 2025)	~$25.0 Billion (as of March 31, 2025)	~$31.0 Billion
Full-Service Branches	30 (MA & RI)	109 (MA, NH, RI, CT)	~139 (Pre-consolidation)
Market Position	Leading mid-sized regional bank	Greater Boston's leading local bank	Largest Massachusetts-based bank

HarborOne Bank maintains a strong local footprint with 30 full-service branches across Massachusetts and Rhode Island.

The bank's pre-merger social strength was its deep local presence, operating 30 full-service branches across Massachusetts and Rhode Island, plus commercial lending offices in Boston, Massachusetts, and Providence, Rhode Island. This dense, local network is a significant social asset, fostering a community bank reputation that is highly valued by local consumers and small businesses, especially in the southeastern Massachusetts and Rhode Island markets.

The challenge now is to preserve this local trust as the HarborOne Bank brand merges into Eastern Bank. The integration process, which is set to complete the full transition of accounts and services in February 2026, must be handled delicately to avoid customer attrition in these key markets.

The 'HarborOne U' program provides free digital content for community financial literacy and small business education.

HarborOne Bank's commitment to social responsibility is anchored by its 'HarborOne U' program, which offers free educational resources to the community. This initiative directly addresses social needs by improving financial literacy and supporting local economic development through small business education. The program delivers content through various formats:

• Provides financial education programs to groups ranging from pre-school to adulthood.
• Offers in-person or virtual programs for groups of 15 to 200 participants.
• Features curriculum like the 'Millionaire Mindset' for young adults (15-20 years of age) and 'Financial Wellbeing' for adults, focusing on budgeting and credit scores.

In addition to financial education, the bank's community investment includes significant philanthropic efforts. Since its public offering in 2016, the bank has awarded $600,000 in scholarships and pledged $1 million over a 10-year period for college scholarships to local students, underscoring its commitment to social mobility.

Integrating the two corporate cultures post-merger will be a defintely critical execution risk.

The integration of two distinct corporate cultures-HarborOne Bank and Eastern Bank-is a major, near-term social risk. While the merger is financially compelling, with an expected 16% earnings per share (EPS) accretion, the failure to merge the cultures smoothly could erode customer and employee goodwill.

Analyst and company filings highlight the 'Integration Challenges' and 'cultural clashes' as key execution risks that could impact short-term profitability. The social environment of the combined entity will be tested by:

• Employee Retention: Ensuring most HarborOne employees transition successfully to Eastern Bank, especially those in customer-facing roles.
• Customer Reaction: Managing the reputational risk associated with the merger, including the reaction of customers to branch closures and system changes.
• Foundation Integration: The HarborOne Foundation is merging with the Eastern Bank Foundation, which requires a careful transition to maintain the continuity of local charitable giving and community support.

Eastern Bankshares, Inc.'s management must actively manage this cultural integration risk to realize the promised synergies and maintain the combined entity's strong community standing.

HarborOne Bancorp, Inc. (HONE) - PESTLE Analysis: Technological factors

Digital Adoption and Customer Engagement

You need to see hard evidence that customers are actually using the digital tools you invest in, and HarborOne Bancorp's metrics show a strong foundation for the combined bank. As of the third quarter of 2024, 75% of customers were active users of Digital Banking tools. This is a high adoption rate, and it highlights the existing digital comfort of the customer base that Eastern Bankshares, Inc. is acquiring. Plus, the bank's focus on self-service is clear: 72% of customers utilize a debit card regularly, which is well above the industry average of 61%. This existing digital momentum is defintely a tailwind for the new entity's efficiency goals.

Here's the quick math on customer movement: new consumer checking production increased 6% year-over-year in the third quarter of 2024, showing that digital channels are successfully attracting new relationships, not just serving existing ones. This strong digital base is crucial for minimizing disruption as the merger proceeds.

Merger Synergy Relies Heavily on Integrating Core Banking Systems

The success of the merger hinges on a smooth and timely integration of the core banking systems. This is where the promised operational efficiencies-the core financial driver of the deal-are realized. The merger was effective on November 1, 2025, but the full transition of HarborOne Bank's accounts and services to Eastern Bank's systems is scheduled for the weekend of February 21, 2026. This short window requires flawless execution.

The primary benefit of this technological integration is the cost savings. Management projects that the merger will deliver cost savings equivalent to approximately 40% of 2026E HarborOne cash expenses. That's a huge number, and it relies entirely on eliminating redundant systems, consolidating data centers, and streamlining back-office processes through this core systems integration. If the conversion takes 14+ days, customer churn risk rises and those synergy targets get pushed out.

Cybersecurity and Operational Resilience as 2025 Supervisory Priorities

For the entire banking sector, including the newly combined entity, cybersecurity and operational resilience are not just IT issues; they are top-tier regulatory and strategic risks in 2025. The Office of the Comptroller of the Currency (OCC) has made this a clear focus in its Fiscal Year 2025 Bank Supervision Operating Plan. This means the new bank will face heightened scrutiny immediately post-merger.

The regulatory pressure is specifically on moving beyond basic preventative controls to demonstrating robust incident response, data recovery, and overall operational resilience. This focus is driven by the increasing volatility of cyberattacks and the industry's reliance on third-party technology vendors. The combined entity must now ensure its larger, integrated technology stack meets these stringent FY 2025 expectations.

• Focus on preventative controls and incident response.
• Emphasis on operational resilience capabilities for critical operations.
• Scrutiny of third-party risks, especially those with financial technology companies (fintechs).

Scaling Technology for a Broader Customer Base

The merger creates a much larger institution, and the technology platform must scale immediately to handle the expanded footprint and customer volume. The combined organization is a $30 billion locally-based entity, with Eastern Bank reporting approximately $25 billion in assets as of March 31, 2025, and the combined entity holding approximately $26.2 billion in deposits. This scale demands a technology infrastructure that is not only robust but also highly efficient.

The challenge is to leverage the technology to serve a broader geographic area, which now includes an expanded branch network into Rhode Island, while simultaneously delivering the projected cost savings. The technology team's focus must shift from maintaining two separate systems to optimizing one large, unified platform. This is why the core system conversion in February 2026 is the single most important technological milestone for the new organization.

Key Technological Milestone/Metric	Value/Date (2025 Fiscal Year Data)	Strategic Implication
Merger Effective Date	November 1, 2025	Start of the integration period.
Active Digital Banking Users (HONE Q3 2024)	75% of Customers	High digital adoption minimizes friction during transition.
Projected Cost Synergy from Integration	~40% of 2026E HarborOne cash expenses	The core financial objective of the technology integration.
Core Banking System Conversion Date	February 2026 (Q1 2026)	The critical deadline for achieving operational scale and synergy.
Combined Entity Assets	~$31 billion	Defines the necessary scale for the new technology platform.

HarborOne Bancorp, Inc. (HONE) - PESTLE Analysis: Legal factors

The Merger with Eastern Bankshares, Inc.

The most significant legal event for HarborOne Bancorp, Inc. in the 2025 fiscal year is its definitive merger with Eastern Bankshares, Inc. This transaction fundamentally changes the regulatory landscape for the entity, moving it from a standalone regional bank to part of a much larger, more scrutinized institution. HarborOne Bancorp shareholders secured the necessary approval for all merger-related matters on August 20, 2025. This shareholder vote was a critical legal milestone, clearing the path for the final closing.

Merger Consideration and Trading Status

The merger officially became effective shortly after midnight on November 1, 2025, marking the formal legal cessation of HarborOne Bancorp as an independent public company. As a result of the acquisition, trading in HarborOne Bancorp shares was halted effective November 3, 2025, with the stock officially delisted from the NASDAQ Global Select Market after the close of trading on October 31, 2025. This is a clean one-liner: The stock is now off the board.

The final merger consideration offered to HarborOne shareholders was a critical component of the legal agreement, subject to allocation and proration procedures to ensure a specific mix of cash and stock.

Consideration Type	Amount Per Share	Shareholder Election/Conversion
Stock Consideration	0.765 shares of Eastern Bankshares, Inc. common stock	91.87% of shares timely elected stock
Cash Consideration	$12.00 in cash	84.99% of shares were converted into the right to receive Stock Consideration (due to proration)
Total Deal Value (Approx.)	N/A	Approximately $592.08 million (based on 49.34 million shares outstanding)

Here's the quick math: Despite the high demand for stock, the proration mechanism in the merger agreement meant only 84.99% of the shares ultimately received the stock component, with the remainder receiving the cash equivalent of $12.00 per share.

Compliance with Evolving Bank Capital and Liquidity Rules

The combined entity, Eastern Bankshares, Inc., must now navigate a more complex web of financial regulation. Post-merger, the organization is a larger regional bank with approximately $30 billion in assets as of the third quarter of 2025. This increased size subjects it to stricter prudential standards (rules designed to ensure safety and soundness) from the Federal Reserve and other regulators.

Regulators are defintely tightening the screws on capital and liquidity requirements, especially for banks of this scale, following recent market stresses. The combined bank must comply with key US regulatory standards:

• Maintain a minimum Common Equity Tier 1 (CET1) capital ratio of 4.5%.
• Meet the Stress Capital Buffer (SCB) requirement, which is determined by supervisory stress tests and is at least 2.5%.
• Adhere to the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) requirements, which ensure sufficient high-quality liquid assets and stable, long-term funding.

What this estimate hides is the new supervisory focus from the Federal Reserve, outlined in a November 2025 memo, which is shifting examiner attention to material financial risks over procedural documentation. The combined bank needs to ensure its internal audit function is strong, as examiners are now relying more on a firm's internal audit for validating the remediation of Matters Requiring Attention (MRAs). If onboarding takes 14+ days, the risk of a compliance misstep during system integration rises.

HarborOne Bancorp, Inc. (HONE) - PESTLE Analysis: Environmental factors

The environmental factors for HarborOne Bancorp are less about internal operational footprint and more about the financial risk embedded in its loan book from climate-related events, both physical and transitional. The bank's New England focus makes it defintely sensitive to coastal and extreme precipitation risks, while its reliance on Commercial Real Estate (CRE) exposes it to the transition risks of a shifting economy.

HarborOne Bancorp has not publicly committed to specific 2030 or 2050 climate goals under major frameworks.

Unlike larger financial institutions that often publish detailed Environmental, Social, and Governance (ESG) reports with Science-Based Targets (SBTs), HarborOne Bancorp has not made public commitments to major 2030 or 2050 climate goals. This lack of formal commitment means lower immediate compliance costs for climate reporting, but it also creates a potential blind spot for long-term investor relations and risk management. As a regional bank, its primary environmental exposure is not its own small carbon footprint, but the physical and transition risks within its loan portfolio.

Increased regulatory and investor pressure is forcing banks to disclose physical climate risks (e.g., extreme weather).

While the federal regulatory environment for climate disclosure has seen some pushback and pauses, the pressure on regional banks to understand and disclose physical climate risk is still rising from investors and state-level actions. The Northeast region, which includes HarborOne Bancorp's primary markets of Massachusetts and Rhode Island, is experiencing a faster growth rate in extreme precipitation than any other part of the U.S.. This necessitates a clear view of how loan collateral, especially property, is valued and insured against events like flooding.

The total cost of U.S. weather and climate disasters in 2024 reached $182.7 billion, the fourth highest on record, highlighting the escalating financial stakes for the entire banking sector. Your investors are increasingly asking how this translates to loan loss reserves.

Commercial Real Estate (CRE) exposure carries transition risk; the bank had a $17.2 million nonperforming asset in suburban office space in Q3 2024.

The transition risk-the financial risk associated with a shift to a low-carbon economy-is most visible in the bank's Commercial Real Estate (CRE) portfolio. HarborOne Bancorp's loan portfolio was approximately $4.85 billion as of December 31, 2024, with CRE loans making up a significant 47% of total loans. The market shift toward remote work has directly impacted the value of office space, a clear example of transition risk hitting the balance sheet.

This risk materialized with a specific nonperforming asset (NPA) in suburban office space, which was initially recorded at $17.2 million in Q3 2024. By the first quarter of 2025 (Q1 2025), the bank's total office exposure was reported at $212 million, or about 8% of its CRE and construction portfolio, and an aggregate of $8.3 million was charged off on one office credit during that quarter. This credit stress is a clear signal that the transition to a new economic model for commercial property is already creating losses.

Here's the quick math on recent credit quality deterioration in commercial loans:

Metric	Q3 2024 Value	Q1 2025 Value	Q2 2025 Value
Total Nonperforming Assets (NPA)	$28.4 million	$30.9 million	N/A (Focus on Classified)
Nonperforming Assets as % of Total Assets	0.49%	N/A	N/A
Total Criticized and Classified Commercial Loans	N/A	$187.1 million	$193.7 million
Q1 2025 Net Charge-offs (Annualized)	N/A	0.72%	0.14%

The New England region faces rising physical risks from increasingly severe weather events.

HarborOne Bancorp's concentration in Massachusetts and Rhode Island makes it highly vulnerable to physical climate risks, particularly coastal flooding and extreme precipitation. Sea levels along the Massachusetts coast have already risen 11 inches since 1921, exceeding the global average. In Rhode Island, a one-month stretch in January 2024 saw rainfall totals at 300 percent above normal levels, severely flooding homes and businesses. This isn't a future problem; it's a current balance sheet risk.

Key physical risks impacting collateral value and borrower repayment capacity include:

• Coastal Flooding: Long-term data from the Newport, RI, tide gauge shows the local sea level has risen 10 inches in the past century.
• Extreme Precipitation: The Northeast has seen a 60% jump in its worst precipitation events over six decades, with days seeing more than 5 inches of rain rising by 103%.
• Nor'easters: Stronger Nor'easters, fueled by warmer ocean temperatures, have seen their destructive potential increase by roughly 17% due to higher wind speeds.

For a regional bank, this means more frequent and severe damage to residential and commercial properties securing loans, leading to potential collateral impairment and higher loan delinquencies.