Harborone Bancorp, Inc. (HONE): Analyse du pilon [Jan-2025 MISE À JOUR]

Dans le paysage dynamique de la banque régionale, Harborone Bancorp, Inc. (HONE) navigue dans un écosystème complexe de défis et d'opportunités, où les réglementations politiques, les changements économiques, les innovations technologiques et les changements sociétaux convergent pour façonner sa trajectoire stratégique. Cette analyse complète du pilon dévoile les facteurs externes à multiples facettes qui influencent la résilience opérationnelle de Hone, révélant comment une compréhension nuancée des dynamiques politiques, économiques, sociologiques, technologiques, juridiques et environnementales peut transformer les obstacles potentiels en avantages stratégiques pour cette institution financière basée au Massachusetts.

Harborone Bancorp, Inc. (HONE) - Analyse du pilon: facteurs politiques

Impact des réglementations bancaires du Massachusetts State Impact

La division des banques du Massachusetts applique des exigences réglementaires strictes pour les banques à cargaison de l'État. En 2024, le Harborone doit se conformer:

Aspect réglementaire	Exigences spécifiques
Adéquation du capital	Ratio de capital minimum de niveau 1 de 8%
Exigences de liquidité	Maintenir le rapport de couverture de liquidité de 100%
Protection des consommateurs	Divulgation stricte et directives de prêt équitable

Influence de la politique monétaire de la Réserve fédérale

Les politiques monétaires de la Réserve fédérale ont un impact direct sur les stratégies de prêt de Harborone. Les mesures clés comprennent:

• Taux de fonds fédéraux actuels: 5,25% - 5,50%
• Taux de prêt Prime: 8,50%
• Marge d'intérêt net pour le harborone: 3,12%

Conformité de la Loi sur le réinvestissement communautaire

Note de performance de l'ARC de Harborone à partir de 2023: Satisfaisant. Métriques de conformité spécifiques:

Métrique de l'ARC	Valeur de performance
Prêts de développement communautaire	42,3 millions de dollars
Investissement qualifié	18,7 millions de dollars
Activités de service communautaire	37 programmes distincts

Modifications de la surveillance bancaire fédérale

L'approche réglementaire bancaire de la Federal Administration actuelle comprend:

• Exigences de sécurité bancaire numérique améliorées
• Rapports accrus sur les risques financiers liés au climat
• Protocoles anti-blanchiment plus strictes

Harborone Bancorp, Inc. (HONE) - Analyse du pilon: facteurs économiques

Conditions économiques régionales dans le Massachusetts et la Nouvelle-Angleterre

PIB du Massachusetts au troisième trimestre 2023: 595,8 milliards de dollars Taux de croissance économique régionale de la Nouvelle-Angleterre: 2,1% en 2023 Taux de chômage dans le Massachusetts: 3,1% en décembre 2023

Indicateur économique	Valeur du Massachusetts	Valeur de la Nouvelle-Angleterre
Taux de croissance du PIB	2.3%	2.1%
Revenu médian des ménages	$89,645	$81,215
Taux d'inflation	3.2%	3.3%

Fluctuations des taux d'intérêt

Taux des fonds fédéraux en janvier 2024: 5,33% Harborone Bancorp net d'intérêts marge: 3,02% Taux de prêt moyen pour les prêts commerciaux: 7,5%

Type de prêt	Taux d'intérêt	Volume ($ m)
Immobilier commercial	7.25%	425,6 M $
Prêts aux petites entreprises	8.15%	187,3 millions de dollars
Prêts à la consommation	6.75%	213,7 M $

Tendances du marché immobilier des petites entreprises et commerciales

Massachusetts Small Business Count: 689 913 Taux de vacance immobilier commercial à Boston: 12,4% Prêt total de biens immobiliers commerciaux: 1,2 milliard de dollars

Dépenses de consommation et emploi

Dépenses de consommation du Massachusetts en 2023: 315,6 milliards de dollars Taux d'emploi du secteur des services: 68,3% Croissance des ventes au détail: 4,2%

Secteur de l'emploi	Total des employés	Taux de croissance
Technologie	247,600	3.7%
Soins de santé	398,450	2.9%
Services financiers	156,300	2.1%

Harborone Bancorp, Inc. (HONE) - Analyse du pilon: facteurs sociaux

Chart démographique dans le Massachusetts impact les préférences des clients bancaires

Démographie de la population du Massachusetts en 2024:

Groupe d'âge	Pourcentage de population	Préférence de service bancaire
18-34 ans	22.4%	Banque numérique d'abord
35 à 54 ans	29.6%	Services bancaires hybrides
55 à 64 ans	15.2%	Banque de succursale traditionnelle
65 ans et plus	16.8%	Services bancaires en personne

Demande croissante de services bancaires numériques parmi les jeunes générations

Taux d'adoption des banques numériques dans le Massachusetts:

• Utilisation des banques mobiles: 73,5%
• Pénétration des services bancaires en ligne: 82,3%
• Transactions de paiement numérique: 68,9%

Accent accru sur la banque communautaire et le développement économique local

Catégorie d'investissement communautaire	2024 allocation
Prêts aux petites entreprises	42,6 millions de dollars
Projets de développement communautaire local	18,3 millions de dollars
Soutien de l'organisation à but non lucratif	7,9 millions de dollars

Changer la dynamique de la main-d'œuvre affectant l'acquisition et la rétention des talents

Statistiques de la main-d'œuvre de Harborone Bancorp:

• Total des employés: 723
• Âge moyen des employés: 41,3 ans
• Taux de rétention des employés: 86,5%
• Pourcentage de travail à distance: 42%

Catégorie de compétences	Niveau de demande	Embauche de priorité
Technologie bancaire numérique	Haut	Critique
Expérience client	Moyen-élevé	Haut
Cybersécurité	Haut	Critique

Harborone Bancorp, Inc. (HONE) - Analyse du pilon: facteurs technologiques

Transformation numérique continue des plateformes et services bancaires

Harborone Bancorp a investi 3,2 millions de dollars dans des initiatives de transformation numérique en 2023. La plate-forme bancaire numérique de la banque a traité 1,2 million de transactions en ligne au quatrième trimestre 2023, représentant une augmentation de 22% par rapport à l'année précédente.

Métriques de transformation numérique	2023 données
Investissement numérique total	3,2 millions de dollars
Transactions en ligne	1,2 million (Q4)
Croissance de la plate-forme numérique	22% d'une année à l'autre

Investissement dans les technologies de cybersécurité et de protection des données

En 2023, Harborone a alloué 1,7 million de dollars spécifiquement à l'infrastructure de cybersécurité. La Banque a mis en œuvre des systèmes de détection de menaces avancés couvrant 98,5% de ses points de terminaison bancaire numérique.

Investissement en cybersécurité	2023 métriques
Budget de cybersécurité	1,7 million de dollars
Couverture de protection des points de terminaison	98.5%
Temps de réponse des incidents de sécurité	12 minutes

Implémentation de l'IA et de l'apprentissage automatique

Harborone a déployé des algorithmes d'évaluation des risques dirigés par l'IA qui traitent 85 000 demandes de crédit mensuellement. Les modèles d'apprentissage automatique ont réduit le temps d'évaluation des risques de crédit de 47% en 2023.

Métriques AI / Machine Learning	Performance de 2023
Demandes de crédit mensuelles traitées	85,000
Réduction du temps d'évaluation des risques	47%
Précision prédictive	92.3%

Améliorations de la plate-forme bancaire mobile et en ligne

La plate-forme bancaire mobile de Harborone a connu une croissance des utilisateurs de 35% en 2023. La banque a traité 780 000 transactions mobiles par mois, avec une note de satisfaction des utilisateurs de 4,6 / 5.

Métriques des banques mobiles	2023 données
Croissance des utilisateurs de la plate-forme mobile	35%
Transactions mobiles mensuelles	780,000
Évaluation de satisfaction des utilisateurs	4.6/5

Harborone Bancorp, Inc. (HONE) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations bancaires et aux exigences de l'information financière

Harborone Bancorp, Inc. est soumis à une surveillance réglementaire complète de plusieurs agences fédérales et étatiques. Depuis 2024, la banque doit adhérer aux clés suivantes paramètres de la conformité réglementaire:

Agence de réglementation	Exigence de conformité	Métrique spécifique
Réserve fédérale	Ratio d'adéquation des capitaux	12,4% au quatrième trimestre 2023
FDIC	Ratio de couverture de liquidité	Niveau de conformité de 138%
SECONDE	Précision des rapports financiers	Zéro faiblesses matérielles rapportées

Conteste juridique potentiel dans les fusions et activités d'acquisition

Évaluation des risques juridiques pour les activités de fusions et acquisitions:

• Les réserves juridiques totales allouées à un litige potentiel de fusions et acquisitions: 2,3 millions de dollars
• Conseil de conseiller juridique externe: 750 000 $ par an
• Budget de diligence raisonnable de la conformité: 1,1 million de dollars

Lois sur la protection des consommateurs régissant les pratiques bancaires

Loi sur la protection des consommateurs	Dépenses de conformité	Actions d'application
La vérité dans le prêt	Infrastructure de conformité de 450 000 $	Zéro violations en 2023
Loi sur les rapports de crédit équitable	Systèmes de surveillance de 375 000 $	Une correction mineure demandée

Examen réglementaire de la gouvernance et de la transparence des institutions financières

Métriques de la conformité de la gouvernance:

• Membres indépendants du conseil d'administration: 7 membres du conseil d'administration sur 9 sur 9
• Coût annuel d'audit de la gouvernance d'entreprise: 525 000 $
• Score de conformité des rapports de transparence: 94,6%

Harborone Bancorp, Inc. (HONE) - Analyse du pilon: facteurs environnementaux

Pratiques bancaires durables et initiatives de financement vert

Harborone Bancorp a déclaré 42,5 millions de dollars en portefeuille de prêts verts au quatrième trimestre 2023. Les engagements de financement durable de la banque comprennent:

Initiative verte	Montant d'investissement	Année cible
Prêts aux énergies renouvelables	18,3 millions de dollars	2024
Hypothèques éconergétiques	12,7 millions de dollars	2024
Financement du projet solaire	11,5 millions de dollars	2024

Évaluation des risques climatiques dans les prêts commerciaux et résidentiels

Métriques d'évaluation des risques climatiques pour le portefeuille de prêt de Harborone:

Catégorie de risque	Valeur de portefeuille évaluée	Budget d'atténuation des risques
Prêts à la propriété côtière	237,6 millions de dollars	4,2 millions de dollars
Prêts commerciaux de la zone d'inondation	156,9 millions de dollars	3,7 millions de dollars

Améliorations de l'efficacité énergétique dans les opérations des entreprises

Investissements de l'efficacité énergétique des entreprises pour 2024:

• Dépenses en capital de l'efficacité énergétique totale: 2,1 millions de dollars
• Réduction de la consommation d'énergie projetée: 22,5%
• Cible de réduction des émissions de carbone: 18,3%

Compliance environnementale et engagements de responsabilité sociale des entreprises

Zone de conformité	Investissement	Pourcentage de conformité
Conformité réglementaire environnementale	1,6 million de dollars	98.7%
Reporting de durabilité	$450,000	100%
Programmes de compensation de carbone	$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.