Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-38955 HarborOne Bancorp, Inc. (Exact name of registrant as specified in its charter) Massachusetts 81-1607465 (State or other jurisdiction of in ...

Investor Presentation April 2025 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 sharehol ...

Company Performance - HarborOne Bancorp reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.17 per share, and down from $0.17 per share a year ago, representing an earnings surprise of -17.65% [1] - The company posted revenues of $41.36 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 5.88%, and slightly up from year-ago revenues of $41.32 million [2] - Over the last four quarters, HarborOne Bancorp has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - HarborOne Bancorp shares have declined approximately 15.9% since the beginning of the year, compared to the S&P 500's decline of -8.6% [3] - The current consensus EPS estimate for the coming quarter is $0.20 on $44.9 million in revenues, and $0.83 on $181.29 million in revenues for the current fiscal year [7] Industry Outlook - The Zacks Industry Rank for Banks - Northeast is currently in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can materially impact individual stock performance [5][8]

Exhibit 99.1 HarborOne Bancorp, Inc. Announces 2025 First Quarter Results Contact: Stephen W. Finocchio, EVP and CFO Brockton, Massachusetts (April 24, 2025): HarborOne Bancorp, Inc. (the "Company" or "HarborOne") (NASDAQ: HONE), the holding company for HarborOne Bank (the "Bank"), announced net income of $5.5 million, or $0.14 per diluted share, for the quarter ended March 31, 2025, a decrease of $3.4 million, or 38.1%, compared to net income of $8.9 million, or $0.21 per diluted share, for the quarter end ...

Financial Performance - Net interest and dividend income for 2024 was $125,652,000, a decrease of 1.3% from $127,271,000 in 2023[227] - Total revenue for 2024 was $172,569,000, slightly up from $169,125,000 in 2023, indicating a growth of 1.4%[227] - Noninterest income increased to $46,917,000 in 2024, up 12.4% from $41,854,000 in 2023[227] - Net income for 2024 was $27,407,000, representing a significant increase of 70.5% compared to $16,077,000 in 2023[227] - Earnings per share (diluted) rose to $0.66 in 2024, compared to $0.37 in 2023, marking an increase of 78.4%[227] Asset and Loan Growth - Total assets increased to $5,753,133,000 in 2024, up from $5,667,896,000 in 2023, reflecting a growth of 1.5%[227] - Total loans reached $4,852,499,000 in 2024, a slight increase from $4,750,311,000 in 2023, representing a growth of 2.2%[227] - Net loans reached $4.80 billion, an increase of $94.1 million, or 2.0%, from $4.70 billion at December 31, 2023[252] - Total loans reached $4,824,206 thousand, with commercial loans contributing $3,100,344 thousand and a yield of 5.60%[1] Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) was $56,101,000 in 2024, up from $47,972,000 in 2023, indicating a rise of 17.7%[227] - Non-performing loans to total loans ratio increased to 0.61% in 2024 from 0.37% in 2023, showing a deterioration in asset quality[227] - The provision for credit losses increased to $8.3 million in 2024 from $5.7 million in 2023[270] - The ACL on unfunded commitments is Management's estimate of expected credit losses over the expected contractual term[424] Deposits and Funding - Total deposits increased by $163.3 million, or 3.7%, to $4.55 billion as of December 31, 2024, compared to $4.39 billion in 2023[262] - Noninterest-bearing deposits rose by $30.7 million, or 4.6%, while regular savings accounts decreased by $370.1 million, or 29.2%[262] - Brokered deposits increased by $74.8 million, or 22.9%, to $401.5 million as of December 31, 2024[263] - Total borrowings from the FHLB decreased by $51.9 million to $516.6 million at December 31, 2024[268] Noninterest Income and Expenses - Total noninterest income increased by $1.2 million, or 4.4%, to $27.5 million for the year ended December 31, 2024, driven by gains in interchange fees and other deposit account fees[288] - Total noninterest expense increased by $2.1 million, or 1.9%, to $109.4 million for the year ended December 31, 2024, with significant increases in deposit expenses and deposit insurance[291] - Total noninterest expense decreased to $130,035 thousand in 2024 from $138,320 thousand in 2023, a reduction of approximately 6.5%[368] Tax and Regulatory Compliance - The effective tax rate for the year ended December 31, 2024, was 20.0%, down from 36.0% in 2023, influenced by a discrete tax benefit from amended tax returns[282] - The company exceeded all regulatory capital requirements and was considered "well capitalized" under regulatory guidelines as of December 31, 2024[335] Liquidity and Capital Management - The company's liquidity position includes cash and cash equivalents of $231.1 million, with additional borrowing capacity of $656.2 million from the FHLB and $630.1 million from the FRBB[332] - The company has access to immediate liquid resources and maintains a strong liquidity position, with a focus on managing cash flow and liquidity[331] Operational Efficiency - The efficiency ratio (non-GAAP) improved to 74.91% in 2024 from 81.34% in 2023, indicating enhanced operational efficiency[344] - Total adjusted noninterest expense (non-GAAP) decreased to $129,277 million in 2024 from $137,563 million in 2023, a reduction of approximately 9.3%[344] Miscellaneous - The Company operates 30 full-service bank branches in Massachusetts and Rhode Island, with additional mortgage offices in several states, including Florida[383] - The primary deposit products include checking, money market, savings, and term certificate of deposit accounts, while the main lending products are commercial real estate, residential mortgages, and consumer loans[384]

Core Insights - HarborOne Bancorp (HONE) reported a revenue of $45.52 million for the quarter ended December 2024, reflecting a year-over-year increase of 17.9% and a surprise of +4.95% over the Zacks Consensus Estimate of $43.37 million [1] - The earnings per share (EPS) for the quarter was $0.20, compared to $0.09 in the same quarter last year, resulting in an EPS surprise of +11.11% against the consensus estimate of $0.18 [1] Financial Performance Metrics - The efficiency ratio for HarborOne Bancorp was reported at 71.8%, which is better than the four-analyst average estimate of 74.6% [4] - The net interest margin stood at 2.4%, slightly above the three-analyst average estimate of 2.3% [4] - Total noninterest income was $13.69 million, exceeding the average estimate of $11.43 million from four analysts [4] - Net interest income was reported at $31.83 million, which was below the three-analyst average estimate of $32.70 million [4] Stock Performance - Over the past month, shares of HarborOne Bancorp have returned +2%, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - HarborOne Bancorp reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing an increase from $0.09 per share a year ago, representing an earnings surprise of 11.11% [1] - The company posted revenues of $45.52 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.95%, compared to revenues of $38.6 million in the same quarter last year [2] - Over the last four quarters, HarborOne Bancorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - The immediate price movement of HarborOne Bancorp's stock will depend on management's commentary during the earnings call and future earnings expectations [3] - The stock has added about 2% since the beginning of the year, while the S&P 500 has gained 2.7% [3] - The current consensus EPS estimate for the coming quarter is $0.18 on revenues of $44.48 million, and for the current fiscal year, it is $0.87 on revenues of $183.38 million [7] Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 6% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Performance - Net income for Q4 2024 was $8.9 million, or $0.21 per diluted share, a 126.5% increase from $3.9 million, or $0.10 per diluted share in Q3 2024[1] - Total revenue for Q4 2024 was $45,516,000, up from $38,597,000 in Q4 2023, marking an increase of 18.0%[25] - Net income for Q4 2024 was $8,887,000, compared to a loss of $7,111,000 in Q4 2023, indicating a significant turnaround[25] - Basic earnings per share increased to $0.66 for the year ended December 31, 2024, compared to $0.37 in 2023, reflecting an increase of 78.4%[29] - Net income for the year ended December 31, 2024, was $27,407 thousand, significantly higher than the $16,077 thousand reported in 2023, representing a growth of 70.5%[29] Asset Quality - Total nonperforming assets were $29.5 million, representing 0.51% of total assets, up from 0.49% in the previous quarter[10] - Nonperforming loans to total loans ratio improved to 0.61% in Q4 2024 from 0.37% in Q4 2023, indicating better asset quality[25] - The allowance for credit losses increased to $56,101,000 in Q4 2024 from $47,972,000 in Q4 2023, showing a proactive approach to managing credit risk[25] - Total delinquent loans increased to $37,427,000 in Q4 2024 from $19,603,000 in Q4 2023, reflecting challenges in loan performance[33] Income and Expenses - Noninterest income rose by $3.1 million, or 29.5%, to $13.7 million compared to $10.6 million in the previous quarter[6] - Total noninterest expenses decreased to $130,035 thousand for the year ended December 31, 2024, down from $138,320 thousand in 2023, a reduction of 6.0%[29] - Total noninterest expenses for Q4 2024 were $32,873,000, a decrease from $43,214,000 in Q4 2023, showing effective cost management[31] Deposits and Loans - Total deposits increased by $14.6 million to $4.55 billion, with brokered deposits rising by $27.8 million to support BTFP borrowing payoff[12] - Average deposits, excluding brokered deposits, increased by $62.9 million, or 6.1% annualized, on a linked-quarter basis[4] - Total loans stood at $4,852,499,000 in Q4 2024, a slight decrease from $4,879,503,000 in Q3 2024, reflecting a cautious lending strategy[25] - Total loans increased to $4,824,206 thousand in 2024, compared to $4,669,898 thousand in 2023, reflecting a growth of 3.3%[39] Capital and Equity - Total stockholders' equity decreased by 1.6% to $575.0 million, impacted by unrealized losses on available-for-sale securities and share repurchases[12] - The common equity tier 1 ratio (CET1) was reported at 11.79% in Q4 2024, slightly up from 11.99% in Q4 2023, indicating stable capital adequacy[25] - Tangible common equity (non-GAAP) was $515,212 million, down from $524,213 million in the prior quarter[49] Efficiency and Ratios - The efficiency ratio improved to 71.81% in Q4 2024 from 111.47% in Q4 2023, demonstrating enhanced operational efficiency[25] - The efficiency ratio (non-GAAP) improved to 68.84% in Q4 2024 from 73.65% in Q4 2023, indicating enhanced operational efficiency[43] - Return on average assets (GAAP) improved to 0.62% from 0.27% in the previous quarter, indicating better asset utilization[47] Interest Income - The net interest margin remained flat at 2.36% compared to the previous quarter[4] - Total interest and dividend income for Q4 2024 was $67,519,000, an increase from $64,385,000 in Q4 2023, representing a year-over-year growth of 3.3%[31] - Net interest income reported at $31,827 thousand, reflecting an increase from $29,693 thousand in the same quarter last year[35]

Financial Performance - Consolidated net income for the three months ended September 30, 2024, was $3.9 million, down from $8.4 million in the same period of 2023[199]. - The Bank's net income decreased by $4.2 million, or 46.0%, to $4.9 million for the three months ended September 30, 2024, compared to $9.1 million for the same period in 2023[217]. - For the nine months ended September 30, 2024, the Bank's net income decreased by $5.8 million, or 22.9%, to $19.6 million from $25.5 million in the prior year[218]. - Total noninterest income was $6.7 million for the three months ended September 30, 2024, compared to $6.5 million for the same period in 2023, representing an increase of $154,000 or 2.4%[221]. - Total noninterest income for the nine months ended September 30, 2024, was $13.1 million, down from $14.2 million in the prior year[232]. Asset and Loan Growth - Total assets increased by $108.1 million, or 1.9%, to $5.78 billion at September 30, 2024, from $5.67 billion at December 31, 2023[181]. - Net loans increased by $123.2 million, or 2.6%, to $4.83 billion at September 30, 2024, from $4.70 billion at December 31, 2023[185]. - Total loans reached $4,860,168 thousand, generating interest income of $64,047 thousand at an average yield of 5.24%, up from $4,706,326 thousand and $58,375 thousand at 4.92%[202]. - The total loan balance as of September 30, 2024, was $4.88 billion, compared to $4.75 billion at December 31, 2023[243]. - Total deposits increased by $148.8 million to $4.54 billion as of September 30, 2024, reflecting a 3.4% growth compared to December 31, 2023[193]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses on loans increased by $6.0 million, or 12.6%, to $54.0 million at September 30, 2024[185]. - The allowance for credit losses to total loans ratio was 1.11% as of September 30, 2024, up from 1.01% at December 31, 2023[243]. - The Bank recorded a provision for credit losses of $5.9 million for the three months ended September 30, 2024, reflecting a specific reserve allocation for a single credit of $4.7 million[219]. - Net charge-offs totaled $182,000, or 0.02%, of average loans outstanding for the quarter ended September 30, 2024, compared to net recoveries of $18,000 for the same period in 2023[220]. - The total amount of loans to borrowers experiencing financial difficulty was $15.3 million as of September 30, 2024[247]. Interest Income and Expense - Interest and dividend income on a tax equivalent basis increased by $6.1 million, or 9.6%, to $69.5 million for the three months ended September 30, 2024, compared to $63.4 million for the same period in 2023[206]. - Interest expense increased by $5.0 million, or 15.8%, to $37.1 million for the three months ended September 30, 2024, from $32.1 million for the same period in 2023[208]. - Interest expense on deposits increased by $4.9 million, or 19.7%, reflecting deposit growth and a 45-basis-point increase in rates paid[208]. - The net interest margin on a full tax equivalent basis increased by 2 basis points to 2.36% for the three months ended September 30, 2024, from 2.34% for the same period in 2023[210]. - Net interest and dividend income increased by $1.0 million, or 3.2%, to $32.3 million for the three months ended September 30, 2024, compared to $31.3 million for the same period in 2023[210]. Deposits and Funding - Noninterest-bearing deposits rose by $53.4 million, or 8.1%, while regular savings deposits decreased by $339.1 million, or 26.8%[193]. - Brokered deposits increased by $47.1 million, or 14.4%, indicating a strategic move to seek additional funding[193]. - The company reported $373.7 million in brokered deposits as of September 30, 2024, to supplement core deposit fluctuations[266]. - The company has additional borrowing capacity of $830.3 million from the FHLB and $419.2 million from the FRBB based on collateral pledged[265]. - The company borrowed $175 million for a one-year term under the BTFP during the first quarter of 2024[196]. Regulatory Capital and Liquidity - Total stockholders' equity was $584.2 million, a slight increase of 0.1% from $583.8 million at December 31, 2023[197]. - The tangible-common-equity-to-tangible-assets ratio was 9.17% as of September 30, 2024, consistent with the previous year[198]. - The company exceeded all regulatory capital requirements and is considered "well capitalized" under regulatory guidelines as of September 30, 2024[269]. - As of September 30, 2024, the company has immediate liquid resources in cash and cash equivalents amounting to $224.3 million, primarily on deposit with the FRBB[265]. - The company’s liquidity risk management process aims to provide continuous access to sufficient, reasonably priced funds[264]. Noninterest Expense and Operational Efficiency - Total noninterest expense was $26.8 million for the three months ended September 30, 2024, reflecting a 1.8% increase from $26.3 million in the prior year[226]. - Compensation and benefits decreased by 2.0% to $14.9 million for the three months ended September 30, 2024, compared to $15.2 million in the prior year[226]. - Noninterest expense for the three months ended September 30, 2024, was $5.6 million, a 2% increase from $5.5 million in the prior year[238]. - The bank recorded an intersegment loss of $1.1 million for the nine months ended September 30, 2024, compared to a loss of $153,000 in the prior year[222]. - The loss on sale of securities was realized on the sale of $17.5 million of available-for-sale securities with a weighted average book yield of 2.84%[225]. Mortgage and Loan Segment Performance - The bank purchased $86.8 million of residential mortgage loans from HarborOne Mortgage during the nine months ended September 30, 2024, down from $132.4 million in the prior year[224]. - Gain on sale of mortgage loans for the three months ended September 30, 2024, was $3.8 million, a decrease of 25.6% from $5.1 million in the prior year[232]. - The bank's mortgage segment recorded a net loss of $1.1 million for the three and nine months ended September 30, 2024, compared to a net loss of $138,000 in the prior year[231]. - The change in mortgage servicing rights fair value declined by $3.3 million for the three months ended September 30, 2024, reflecting the decrease in benchmark residential rates[234]. - Conventional loans accounted for 66.1% of total loans in Q3 2024, up from 62.9% in Q3 2023[236].

Financial Performance - HarborOne Bancorp reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.18 per share, and down from $0.20 per share a year ago, representing an earnings surprise of -44.44% [1] - The company posted revenues of $42.46 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.09%, and down from $42.68 million year-over-year [1] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.18 on revenues of $43.49 million, and for the current fiscal year, it is $0.71 on revenues of $171.05 million [4] - The estimate revisions trend for HarborOne Bancorp is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [4] Market Comparison - HarborOne Bancorp shares have increased by approximately 11.1% since the beginning of the year, compared to the S&P 500's gain of 21.5% [2] - The Banks - Northeast industry, to which HarborOne Bancorp belongs, is currently in the top 19% of over 250 Zacks industries, suggesting a positive outlook for the sector [5]