Focused. Growth. 2018 Summary Annual Report Dear Shareholders, Customers, and Employees: On behalf of our Board of Directors, I’m pleased to share with you our 2018 Annual Report, which highlights the many successes of our very best year in our one hundred and one year history. Record earnings, record loans, record deposits, record margin, record community and non-profit donations, and the list goes on. At $3.7B in assets and over 650 employees, we are stronger than ever, and our future is bright. 2018 was a year of significant growth and organizational change for our company, with efforts focused on revenue growth and operational efficiency. Key performance drivers include: Revenue growth: • Expansion of our commercial lending business, including the opening of our Boston loan production office, which enabled us to exceed $1B in commercial loans for the first time in our history. Establishment of a mortgage office in NJ marked our entry into residential lending in the mid-Atlantic region. Acquisition of Coastway Community Bank added nine branches, $700MM in loans and $400MM in deposits to our franchise. Operational Efficiency: • Consolidation of the Bank residential mortgage division and our mortgage company into a single entity, HarborOne Mortgage. Combining management, sales, and operations under one operating unit delivered more efficiency for the business. Consolidation of all of our loan servicing units into one group. Exit from the indirect car lending business to focus resources on the more profitable auto leasing business. • • • • Upon completion of the Coastway acquisition, we established ourselves as a true New England banking franchise and one of the largest co-operative banks in New England. Combined, HarborOne Bank and HarborOne Mortgage, now have offices across 5 states, including Massachusetts, Rhode Island, New Hampshire, Maine and New Jersey. We’re also quite proud of continued success in our commitment to the communities that we serve. We were recognized by Forbes as the #1 mid-sized bank in Massachusetts, #2 in New England, and #6 nationally, based on Forbes’ annual customer survey of banks. HarborOne U continued its outstanding leadership in our region for delivering excellence in personal enrichment and financial education for consumers and small business owners. Between the work of the “U,” the HarborOne Foundation, and our Community Relations team, we earned an “Outstanding” CRA rating from the FDIC. We also awarded another $100,000 in scholarships to twenty outstanding high school seniors heading off to higher education as part of our industry-leading 10-year 1 Million dollar commitment to helping great kids and great families afford college. Finally, we completed our inaugural Next-Generation Leadership Program, providing twenty of our high potential non-officer employees with a sixteen-week leadership curriculum to prepare them to be future leaders of our company. It was quite a year. We accomplished a lot, and we did it as a team. In today’s fast-paced, ever-changing financial landscape, teamwork is the only way to be successful. While we’re tremendously proud of what’s been done, we are simply setting the stage for our continued growth. Our eyes, our vision, and the way that we manage the business everyday are set squarely on building a franchise that is strong and committed to the mutual success of our customers, our employees, and the many communities that we serve. Thank you for being part of the HarborOne family. We look forward with excitement and enthusiasm to all that lies ahead. Sincerely, James Blake, CEO HarborOne Bancorp, Inc. Community Investment HarborOne has doubled its charitable donations over the last three years. Overall, HarborOne provided over 1 Million dollars in support to local community organizations in 2018. HarborOne Invests in the local Community with: HarborOne Foundation In 2018 the HarborOne Foundation made 35 grants totaling $400,500 to non-profits providing education, housing, and basic human needs. HarborOne Foundation Rhode Island In 2018, the HarborOne Foundation Rhode Island provided over $145,000 in charitable contributions to dozens of Rhode Island Organizations. HarborOne Bank provided over $735,000 in financial and in-kind support to local non-profit and civic organizations including: • Greater Plymouth County United Way • Old Colony YMCA • Signature Healthcare • Father Bill’s & MainSpring • Brockton Boys & Girls Club The ONECommunity Scholarship Program awarded $100,000 in college scholarships • In our third year of a 1 Million dollar pledge to help defray the cost of higher education, twenty exceptional high school seniors received scholarships of $5,000. Our Caring Crew members across MA and RI combined to give over 8,500 hours of volunteer service. Highlights included: • Set Sail for School: In partnership with our colleagues from HarborOne Mortgage, we packed 5,000 new backpacks full of school supplies for economically disadvantaged children. • Harvest for Hunger: We collected over 6,300 non-perishable food items and donated $25,000 to local area food programs. HarborOne U continues to deliver education and skills that fuel future success. • In 2018, HarborOne U Outreach program served over 4,600 local youth with a variety of financial education and life skills programs. • HarborOne U programming is now being provided in Rhode Island. We received an “Outstanding” Community Reinvestment Act rating from the FDIC. Board of Directors HarborOne Bank Leadership Team Joseph F. Barry Mandy Lee Berman James W. Blake Gordon Jezard Barry R. Koretz James W. Blake, CEO Joseph F. Casey, President and COO H. Scott Sanborn, EVP, Commercial Lending Brenda K. Kerr, SVP, Retail Wayne F. Dunn, SVP, Chief Technology Officer Wallace H. Peckham, III CPA Christopher Gibbons, SVP, Consumer Lending David P. Frenette, Esq. Dr. Timothy R. Lynch Michael J. Sullivan, Esq. Joseph F. Casey William Payne Damian W. Wilmot, Esq Corporators Thomas Andrade Shaynah Barnes Chris Baynes Jason Bourne Jane Callahan Mark Langone, SVP, Chief Enterprise Risk Officer David Reilly, SVP, Operations Linda Simmons, SVP, Chief Financial Officer Dave Tryder, SVP, Chief Marketing Officer Patricia Williams, SVP, Human Resources Stephen Donahue Emanuel Gomes Michael Goodman James Harrington Dr. James Heller Vincent Marturano Neal Siskind, Esq. Wayne Matthews, Esq. Kristen Stadelmann John McCluskey, Esq. Richard Straczynski David Offutt David Thomas Andrea Papadopoulos, Ph.D. Peter Vlaco Thomas Carroll, Jr. Kim Hollon Beverly Pavasaris Mary Waldron Fred Clark Richard Lawton, Esq. Paula Peterson Brent Warren, Esq. Bancorp Performance Highlights Steady growth continued in many key areas. $5,768 $5,931 2.85% Net Income* 2015 2016 2017 2018 Net Interest Margin (FTE Basis) 2016 2017 2018 *Dollars in thousands $10,379 $11,394 3.04% 3.22% Commercial, Commercial Construction and Commercial Real Estate Loans* 2015 2016 2017 2018 Total Deposits* 2015 2016 2017 2018 $361,997 $640,428 $881,681 $1,373,351 $1,691,212 $1,804,753 $2,013,738 $2,685,061 HONE Stock Performance HarborOne Bank Russell 2000 07 . 01 . 16 12 . 31 . 16 12 . 31 . 17 12 . 31 . 18 100 100 89 151 150 118 135 124 Index Value *Dollars in thousands The selected financial data of the Company set forth in this report does not purport to be complete and should be read in conjunction with, and is qualified in its entirety by, the more detailed information appearing in the Company’s Form 10-K. About HarborOne HarborOne Bancorp, Inc. is the holding company for HarborOne is a recognized leader in education, providing a HarborOne Bank, the largest state-chartered co-operative range of educational services through “HarborOne U,” with bank in New England with $3.7 billion in assets. The Bank, classes on small business, financial literacy and personal established in 1917 as a state-chartered credit union, enrichment at campuses adjacent to our Brockton and converted to a state-chartered co-operative bank on July Mansfield locations. In 2016, HarborOne made a 10-year, 1, 2013. Today, HarborOne has 24 full-service branches 1 Million dollar commitment to supporting higher education for in southeastern Massachusetts and Rhode Island and high school seniors through the OneCommunity Scholarship commercial lending offices in Boston and Providence. Program. The Bank was recognized as the #1 ranked bank in HarborOne Mortgage, headquartered in Manchester, NH, Massachusetts by Forbes in 2018. provides personalized residential lending solutions through a network of 34 branch offices located throughout New England. Follow us NMLS #459218 HarborOne Bank 770 Oak Street, Brockton, MA 02301 800-244-7592 or 508-895-1000