The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

HarborOne outgrows Mass. deposit-insurance fund

HarborOne Bancorp in Brockton, Mass., has changed its bank’s charter after getting too big to use a benefit of being a state-chartered savings bank.

The $5.4 billion-asset company disclosed in a regulatory filing that HarborOne Bank switched to a state-chartered trust company and ended its membership in the Depositors Insurance Fund.

The DIF insures deposit balances held by Massachusetts-chartered savings banks in excess of the federal deposit insurance coverage amounts.

HarborOne, which had nearly $4.2 billion of deposits on Dec. 31, said its “growth in deposit size required the bank to withdraw from the DIF and the concurrent charter conversion.”

The company noted that its bank will continue to be supervised by the Massachusetts Division of Banks and its deposits will still be insured by the Federal Deposit Insurance Corp. to applicable limits.

Deposits insured by the DIF on Feb. 24 will continue to be insured by the DIF until Feb. 24, 2024.

Leave a Reply

Your email address will not be published. Required fields are marked *