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]

[Executive Summary & Financial Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Financial%20Highlights) HarborOne Bancorp reported a significant Q1 2025 net income decrease, despite strong commercial loan growth and improved deposit costs [Overall Performance](index=1&type=section&id=1.1%20Overall%20Performance) HarborOne Bancorp reported Q1 2025 net income of $5.5 million ($0.14 diluted EPS), a 38.1% decrease from Q4 2024's $8.9 million Net Income and Diluted EPS Overview | Metric | Q1 2025 | Q4 2024 | Change (QoQ) | Change (%) | | :------------------- | :------ | :------ | :----------- | :--------- | | Net Income | $5.5M | $8.9M | -$3.4M | -38.1% | | Diluted EPS | $0.14 | $0.21 | -$0.07 | -33.3% | [Key Financial Highlights](index=1&type=section&id=1.2%20Key%20Financial%20Highlights) The company achieved strong commercial and industrial loan growth, reduced commercial real estate balances, lowered loan delinquencies, and improved deposit costs and residential mortgage closings - Commercial and industrial loan growth: **$33 million**[2](index=2&type=chunk) - Cost of deposits (excluding brokered deposits) decreased by **15 basis points**[2](index=2&type=chunk) - Residential mortgage loan closings increased **11.8% year-over-year**[2](index=2&type=chunk) [Detailed Financial Performance](index=1&type=section&id=2.%20Detailed%20Financial%20Performance) This section analyzes net interest income, noninterest income, and noninterest expense, detailing factors influencing each component's performance [Net Interest Income](index=1&type=section&id=2.1%20Net%20Interest%20Income) Net interest and dividend income slightly declined to $31.5 million, but net interest margin improved by 3 basis points to 2.39%, driven by lower borrowing costs and average borrowings Net Interest Income and Margin Trend | Metric | Q1 2025 (USD) | Q4 2024 (USD) | Change (QoQ) (USD) | | :-------------------------- | :------ | :------ | :----------- | | Net Interest & Dividend Income | $31.5M | $31.8M | -$0.358M | | Net Interest Margin | 2.39% | 2.36% | +3 bps | - Borrowing costs improved **6 basis points**, and average borrowings declined **$20.0 million**[3](index=3&type=chunk) [Noninterest Income](index=1&type=section&id=2.2%20Noninterest%20Income) Total noninterest income decreased by $3.8 million (27.7%) to $9.9 million, primarily due to a $2.9 million decline in mortgage banking income from lower loan sales gains and MSR valuation Noninterest Income Components | Metric | Q1 2025 (USD) | Q4 2024 (USD) | Change (QoQ) (USD) | Change (%) | | :------------------- | :------ | :------ | :----------- | :--------- | | Total Noninterest Income | $9.9M | $13.7M | -$3.8M | -27.7% | | Mortgage Banking Income | $3.452M | $6.364M | -$2.912M | -45.8% | - HarborOne Mortgage realized a **$2.7 million** gain on loan sales from mortgage closings of **$114.1 million** in Q1 2025, down from **$4.0 million** from **$179.1 million** in Q4 2024[5](index=5&type=chunk) - The mortgage servicing rights (MSR) valuation decreased **$1.2 million** compared to an increase of **$2.3 million** for Q4 2024, with a Q1 MSR valuation loss of **$1.1 million** offset by a **$561,000** economic hedging gain[5](index=5&type=chunk) [Noninterest Expense](index=2&type=section&id=2.3%20Noninterest%20Expense) Total noninterest expense remained flat at $32.9 million, with variances driven by decreased deposit account fees and seasonal increases in occupancy and equipment expense Total Noninterest Expense Trend | Metric | Q1 2025 (USD) | Q4 2024 (USD) | Change (QoQ) (USD) | | :------------------ | :------ | :------ | :----------- | | Total Noninterest Expense | $32.9M | $32.9M | Flat | - Deposit account fees decreased **$871,000**, primarily due to a **$493,000** decrease in debit card interchange fees from a Q4 annual VISA volume incentive catch-up adjustment and a **$181,000** seasonal decrease[5](index=5&type=chunk) - Occupancy and equipment expense increased **$150,000** primarily due to seasonal increases for snow removal and heating costs[5](index=5&type=chunk) [Balance Sheet Overview](index=2&type=section&id=3.%20Balance%20Sheet%20Overview) This section provides an overview of the company's assets, liabilities, and stockholders' equity, detailing key changes and their drivers [Assets](index=2&type=section&id=3.1%20Assets) Total assets decreased by $52.8 million (0.9%) to $5.70 billion, primarily due to a $31.5 million decline in total loans, despite commercial and industrial loan growth Asset Composition and Changes | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | Change (QoQ) (USD) | Change (%) | | :------------------------------------ | :------------------- | :---------------------- | :----------------- | :--------- | | Total Assets | $5.70B | $5.75B | -$52.8M | -0.9% | | Total Loans | $4.82B | $4.85B | -$31.5M | -0.7% | | Commercial Real Estate & Construction Loans | | | -$44.5M | | | Commercial & Industrial Loans | | | +$33.0M | | - Available-for-sale securities increased **$1.7 million** to **$265.6 million**, and the unrealized loss on these securities decreased to **$58.8 million** from **$65.2 million**[5](index=5&type=chunk) [Liabilities](index=2&type=section&id=3.2%20Liabilities) Total deposits increased by $68.0 million to $4.62 billion, driven by non-certificate accounts, while brokered deposits decreased and borrowed funds significantly declined by $117.0 million Liabilities Composition and Changes | Metric | March 31, 2025 (USD) | December 31, 2024 (USD) | Change (QoQ) (USD) | | :------------------------------------ | :------------------- | :---------------------- | :----------------- | | Total Deposits | $4.62B | $4.55B | +$68.0M | | Non-certificate Accounts | | | +$73.2M | | Brokered Deposits | | | -$11.6M | | Borrowed Funds | $399.5M | $516.6M | -$117.0M | - As of March 31, 2025, FDIC-insured deposits were approximately **74%** of total deposits[5](index=5&type=chunk) - The Bank had **$1.42 billion** in available borrowing capacity across multiple relationships[10](index=10&type=chunk) [Stockholders' Equity](index=3&type=section&id=3.3%20Stockholders'%20Equity) Total stockholders' equity increased modestly by 0.2% to $576.0 million, supported by net income and fair value changes, with tangible common equity to tangible assets ratio improving to 9.15% Stockholders' Equity and Per Share Metrics | Metric | March 31, 2025 (Value) | December 31, 2024 (Value) | Change (QoQ) (Value) | Change (%) | | :-------------------------------- | :------------- | :---------------- | :----------- | :--------- | | Total Stockholders' Equity | $576.0M | $575.0M | +$1.0M | +0.2% | | Tangible Common Equity to Tangible Assets Ratio | 9.15% | 9.05% | +10 bps | | | Book Value Per Share | $13.27 | $13.15 | +$0.12 | | | Tangible Book Value Per Share | $11.90 | $11.78 | +$0.12 | | [Asset Quality and Allowance for Credit Losses](index=3&type=section&id=4.%20Asset%20Quality%20and%20Allowance%20for%20Credit%20Losses) The Company recorded a $1.4 million provision for credit losses in Q1 2025, resulting in $8.7 million in net charge-offs, with ACL on loans decreasing to $49.3 million (1.02% of total loans) and nonperforming assets increasing to $30.9 million (0.54% of total assets) Asset Quality Metrics | Metric | Q1 2025 (Value) | Q4 2024 (Value) | Change (QoQ) (Value) | | :------------------------------------ | :------ | :------ | :----------- | | Provision for Credit Losses | $1.4M | $1.9M | -$0.5M | | Net Charge-offs | $8.7M | $0.058M | +$8.642M | | Net Charge-offs (% of avg. loans) | 0.72% | 0.00% | +0.72% | | ACL on Loans | $49.3M | $56.1M | -$6.8M | | ACL on Loans (% of total loans) | 1.02% | 1.16% | -14 bps | | Total Nonperforming Assets | $30.9M | $29.5M | +$1.4M | | Total Nonperforming Assets (% of total assets) | 0.54% | 0.51% | +3 bps | - Total criticized and classified commercial loans increased to **$187.1 million** from **$178.6 million**, reflecting the addition of three new credits in the special mention category due to pressure on commercial real estate values[8](index=8&type=chunk) - Non-performing commercial real estate loans decreased **$7.8 million** due to the charge-off, while non-performing commercial and industrial loans increased **$8.3 million**, primarily from a single healthcare credit[8](index=8&type=chunk) [Company Information](index=3&type=section&id=5.%20Company%20Information) HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered trust company, providing comprehensive financial services across Eastern Massachusetts and Rhode Island through 30 banking centers and its mortgage subsidiary - HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered trust company[9](index=9&type=chunk) - Serves Eastern Massachusetts and Rhode Island through **30 full-service banking centers** and commercial lending offices[9](index=9&type=chunk) - Provides educational resources via "HarborOne U" and mortgage lending services through HarborOne Mortgage, LLC[9](index=9&type=chunk) [Legal & Non-GAAP Disclosures](index=4&type=section&id=6.%20Legal%20%26%20Non-GAAP%20Disclosures) This section outlines the company's forward-looking statement disclaimer and explains the use and limitations of non-GAAP financial measures in its reporting [Forward-Looking Statements](index=4&type=section&id=6.1%20Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, emphasizing that actual results may differ materially from expectations due to various risks and uncertainties, with no obligation to update - Statements are based on current beliefs and expectations, subject to significant risks and uncertainties[11](index=11&type=chunk) - Factors causing differences include changes in general business and economic conditions, interest rates, customer behavior, market turbulence, loan default rates, real estate values, cybersecurity incidents, and regulatory changes[11](index=11&type=chunk) - The Company disclaims any obligation to publicly update or revise any forward-looking statements, except as required by law[11](index=11&type=chunk) [Use of Non-GAAP Measures](index=4&type=section&id=6.2%20Use%20of%20Non-GAAP%20Measures) The report utilizes non-GAAP financial measures like "core net income" and "tangible common equity" for performance evaluation by management and analysts, but these are not substitutes for GAAP results - Non-GAAP measures like "core net income," "core earnings per common share," and "tangible common equity" are used by management, regulators, and market analysts[12](index=12&type=chunk) - Core net income and other core measures exclude items management does not consider indicative of ongoing financial performance, such as gain or loss on asset sales and release of uncertain tax position reserves[14](index=14&type=chunk) - These disclosures should not be viewed as a substitute for GAAP results and may not be comparable to non-GAAP measures presented by other companies[15](index=15&type=chunk) [Financial Tables](index=6&type=section&id=7.%20Financial%20Tables) This section provides a comprehensive collection of detailed financial tables, including selected highlights, balance sheet trends, income statements, asset quality, average balances, and segment-specific data [Selected Financial Highlights](index=6&type=section&id=7.1%20Selected%20Financial%20Highlights) This table provides a comprehensive overview of key financial metrics for HarborOne Bancorp across five quarters, covering earnings, per-share data, profitability, balance sheet, asset quality, and capital adequacy Selected Financial Highlights Overview | Metric | March 31, 2025 (Value) | | :------------------------------------ | :------------- | | Net interest and dividend income | $31,469 | | Noninterest income | $9,891 | | Net income (loss) | $5,500 | | Earnings per share, diluted | $0.14 | | Return on average assets | 0.39 % | | Net interest margin on a fully tax equivalent basis | 2.39 % | | Total assets | $5,700,330 | | Total loans | $4,821,033 | | Total deposits | $4,618,721 | | Nonperforming assets | $30,908 | | Tangible common equity / tangible assets | 9.15 % | [Consolidated Balance Sheet Trend](index=7&type=section&id=7.2%20Consolidated%20Balance%20Sheet%20Trend) This table presents a detailed trend of the consolidated balance sheet, showing assets, liabilities, and stockholders' equity over five quarters, highlighting changes in loan categories, deposit types, and capital components Consolidated Balance Sheet Trend Data | Item | March 31, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | | :------------------------------------ | :---------------------------- | :----------------------------- | | Total assets | $5,700,330 | $5,753,133 | | Total loans | $4,821,033 | $4,852,499 | | Total deposits | $4,618,721 | $4,550,753 | | Borrowings | $399,547 | $516,555 | | Total stockholders' equity | $575,967 | $575,011 | [Consolidated Statements of Net Income - Trend](index=8&type=section&id=7.3%20Consolidated%20Statements%20of%20Net%20Income%20-%20Trend) This table details the consolidated statements of net income over five quarters, breaking down interest and dividend income, interest expense, noninterest income, noninterest expenses, net income, and earnings per share Consolidated Statements of Net Income Trend Data | Item | March 31, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | | :------------------------------------ | :---------------------------- | :----------------------------- | | Total interest and dividend income | $64,439 | $67,519 | | Total interest expense | $32,970 | $35,692 | | Net interest and dividend income | $31,469 | $31,827 | | Total noninterest income | $9,891 | $13,689 | | Total noninterest expenses | $32,850 | $32,873 | | Net income | $5,500 | $8,887 | | Diluted earnings per common share | $0.14 | $0.21 | [Asset Quality](index=9&type=section&id=7.4%20Asset%20Quality) This table provides a detailed breakdown of asset quality metrics, including non-performing assets, allowance for credit losses, net charge-offs, and delinquency rates across loan categories for five quarters Asset Quality Metrics Trend | Item | March 31, 2025 (Value) | December 31, 2024 (Value) | | :------------------------------------ | :------------- | :---------------- | | Total nonperforming assets | $30,908 | $29,473 | | Total nonperforming loans to total loans | 0.64 % | 0.61 % | | Allowance for credit losses on loans | $49,323 | $56,101 | | Net charge-offs | $(8,669) | $(58) | | Annualized net charge-offs/average loans | 0.72 % | 0.00 % | | Total delinquent loans | $29,821 | $37,427 | [Average Balances and Yield Trend](index=10&type=section&id=7.5%20Average%20Balances%20and%20Yield%20Trend) This table presents average balances, interest income/expense, and corresponding yields/costs for interest-earning assets and interest-bearing liabilities, along with key profitability ratios like net interest margin Average Balances and Yield Trend Data | Item | March 31, 2025 (Value) | December 31, 2024 (Value) | | :------------------------------------ | :------------- | :---------------- | | Total interest-earning assets (Avg. Bal.) | $5,415,953 | $5,453,514 | | Total interest and dividend income | $64,900 | $67,977 | | Yield on total interest-earning assets | 4.86 % | 4.96 % | | Total interest-bearing liabilities (Avg. Bal.) | $4,343,777 | $4,365,402 | | Total interest expense | $32,970 | $35,692 | | Cost of total interest-bearing liabilities | 3.08 % | 3.25 % | | Net interest margin on a fully tax equivalent basis | 2.39 % | 2.36 % | | Cost of total deposits | 2.48 % | 2.62 % | [Segments Key Financial Data - HarborOne Bank](index=11&type=section&id=7.6%20Segments%20Key%20Financial%20Data%20-%20HarborOne%20Bank) This table provides key financial data for the HarborOne Bank segment, including net interest and dividend income, provision for credit losses, noninterest income and expenses, net income, and efficiency ratios over five quarters HarborOne Bank Segment Financial Data | Item | March 31, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | | :------------------------------------ | :---------------------------- | :----------------------------- | | Net interest and dividend income | $31,315 | $31,681 | | Provision (benefit) for credit losses | $1,385 | $1,927 | | Total noninterest income | $6,392 | $7,385 | | Total noninterest expenses | $28,185 | $27,400 | | Net income | $6,234 | $7,724 | | Tax equivalent efficiency ratio (non-GAAP) | 73.35 % | 68.84 % | [Segments Key Financial Data - HarborOne Mortgage](index=12&type=section&id=7.7%20Segments%20Key%20Financial%20Data%20-%20HarborOne%20Mortgage) This table details the financial performance of the HarborOne Mortgage segment, including net interest and dividend income, mortgage banking income, noninterest expenses, net income/loss, closed loan volume, and gain on sale margin for five quarters HarborOne Mortgage Segment Financial Data | Item | March 31, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | | :------------------------------------ | :---------------------------- | :----------------------------- | | Net interest and dividend income | $149 | $140 | | Total mortgage banking income | $3,628 | $6,163 | | Total noninterest expenses | $4,504 | $5,490 | | Net income (loss) | $(491) | $1,133 | | Closed loan volume | $114,136 | $179,077 | | Gain on sale margin | 2.38 % | 2.21 % | [Non-GAAP Reconciliation](index=13&type=section&id=7.8%20Non-GAAP%20Reconciliation) This section reconciles GAAP financial measures to non-GAAP counterparts like core net income and tangible common equity, providing adjusted views of financial performance and position by excluding specific items Non-GAAP Financial Measures Reconciliation | Item | March 31, 2025 (Value) | December 31, 2024 (Value) | | :------------------------------------ | :------------- | :---------------- | | Net income, as presented (GAAP) | $5,500 | $8,887 | | Core Net Income (non-GAAP) | $5,500 | $8,341 | | Diluted EPS (GAAP) | $0.14 | $0.21 | | Core Diluted EPS (non-GAAP) | $0.14 | $0.20 | | Efficiency ratio (non-GAAP) | 78.97 % | 71.81 % | | Tangible common equity (non-GAAP) | $516,357 | $515,212 | | Tangible book value per share (non-GAAP) | $11.90 | $11.78 | | Tangible common equity/tangible assets (non-GAAP) | 9.15 % | 9.05 % |

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]

Financial Performance - Net income for Q3 2024 was $3.9 million, or $0.10 per diluted share, down from $7.3 million, or $0.18 per diluted share in Q2 2024, and $8.4 million, or $0.20 per diluted share in Q3 2023[1]. - Net income for the nine months ended September 30, 2024, was $18,520,000, a decrease of 20.1% compared to $23,188,000 in the same period of 2023[11]. - Earnings per common share (basic) for the nine months ended September 30, 2024, was $0.45, down from $0.53 in the previous year[11]. - Net income, excluding goodwill impairment charge, for September 30, 2024, was $3,924,000, a decrease from $7,296,000 in June 30, 2024[15]. - Total revenue for September 30, 2024, was $42,461,000, compared to $43,269,000 in June 30, 2024, reflecting a decline of 1.87%[15]. Loan and Deposit Growth - Loan growth was $40.3 million, or 3.3% annualized, while client deposit growth was $89.5 million, or 8.8% annualized[2]. - Total loans increased to $4,860,168 thousand, up from $4,805,284 thousand, reflecting a growth of 1.14%[12]. - Total deposits increased to $4,536,177 thousand from $4,458,297 thousand in the previous quarter, reflecting a growth of approximately 1.75%[9]. - Total deposits, including demand deposits, rose to $4,451,242 thousand, an increase from $4,329,347 thousand, representing a growth of 2.82%[12]. - Commercial loans totaled $3,141,445 thousand, up from $3,113,850 thousand in June 2024, indicating an increase of about 0.89%[9]. Income and Expenses - Total noninterest income decreased by $1.4 million, or 11.3%, to $10.6 million in Q3 2024, primarily due to a decline in mortgage banking income[3]. - Total noninterest expenses increased to $97,162,000, reflecting a 2.2% rise from $95,106,000 in the prior year[11]. - Total noninterest expense decreased by $876,000, or 2.6%, to $32.3 million in Q3 2024, driven by a reduction in marketing expenses[5]. - Total adjusted noninterest expense, excluding goodwill impairment, was $32,078,000 for September 30, 2024, compared to $32,955,000 in June 30, 2024[15]. Asset and Equity Position - Total assets decreased by $11.1 million, or 0.2%, to $5.78 billion at September 30, 2024, reflecting a decrease in cash and cash equivalents[6]. - Total stockholders' equity increased by 1.2% to $584.2 million at September 30, 2024, as unrealized losses on available-for-sale securities decreased[6]. - Total stockholders' equity increased to $584,202 thousand from $577,329 thousand in the previous quarter, reflecting a growth of approximately 1.5%[9]. - The tangible-common-equity-to-tangible-assets ratio was 9.17% at September 30, 2024, indicating a strong capital position exceeding regulatory requirements[6]. Credit Quality - Total nonperforming assets rose to $28.4 million at September 30, 2024, compared to $9.8 million at June 30, 2024, primarily due to a single $17.2 million credit[6]. - The provision for credit losses was $5.9 million in Q3 2024, with a specific reserve allocation of $4.7 million for the aforementioned credit[6]. - The allowance for credit losses on loans was $54,004 thousand, resulting in net loans of $4,825,499 thousand[9]. - Provision for credit losses rose to $6,350,000, an increase of 26.1% compared to $5,036,000 in the previous year[11]. - The allowance for credit losses on loans to total loans was 1.11% as of September 30, 2024, compared to 1.02% in June 30, 2024[16]. Efficiency and Ratios - The efficiency ratio improved to 75.55% for September 30, 2024, down from 76.16% in June 30, 2024[15]. - The efficiency ratio excluding goodwill impairment charge was not specified but is considered useful for evaluating financial condition[8]. - The ratio of interest-earning assets to interest-bearing liabilities was 124.89%, slightly up from 124.16%[12]. - Tangible common equity to tangible assets ratio was 9.17% as of September 30, 2024, compared to 9.03% in June 30, 2024[17]. Segment Performance - Net interest and dividend income for HarborOne Bank segment increased to $31,780 thousand in September 2024, up from $31,098 thousand in June 2024, representing a growth of 2.2%[18]. - Total noninterest income for HarborOne Bank segment was $6,665 thousand in September 2024, a decrease from $7,156 thousand in June 2024, reflecting a decline of 6.9%[18]. - Income before income taxes for HarborOne Bank segment was $5,790 thousand in September 2024, down from $9,848 thousand in June 2024, a decline of 41.5%[18]. - Net income for HarborOne Mortgage segment was a loss of $1,137 thousand in September 2024, compared to a loss of $191 thousand in June 2024[19]. - Closed loan volume for HarborOne Mortgage segment increased to $209,525 thousand in September 2024 from $172,994 thousand in June 2024, a growth of 21.1%[19].

Financial Position - Total assets increased by $119.1 million, or 2.1%, to $5.79 billion at June 30, 2024, from $5.67 billion at December 31, 2023[151] - Total deposits increased by $70.9 million, or 1.6%, to $4.46 billion at June 30, 2024, from $4.39 billion at December 31, 2023[158] - Total stockholders' equity decreased by 1.1% to $577.3 million at June 30, 2024, compared to $583.8 million at December 31, 2023[161] - Total assets increased to $5,806,368 thousand as of June 30, 2024, compared to $5,481,934 thousand as of June 30, 2023[168] - Total equity decreased to $579,863 thousand as of June 30, 2024, from $609,245 thousand as of June 30, 2023[168] Loan and Deposit Activity - Net loans increased by $87.8 million, or 1.9%, to $4.79 billion at June 30, 2024, from $4.70 billion at December 31, 2023[153] - Loans held for sale increased by $22.1 million to $41.8 million at June 30, 2024, reflecting increased loan production[152] - Noninterest-bearing deposits increased by $29.8 million, or 4.5%, to $689.8 million at June 30, 2024[158] - Brokered deposits increased by $58.6 million, or 17.9%, to $385.3 million at June 30, 2024[158] - The total loan balance as of June 30, 2024, was $4.84 billion, up from $4.75 billion at December 31, 2023, indicating growth in the loan portfolio[201] Income and Expenses - Consolidated net income for the three months ended June 30, 2024, was $7.3 million, slightly down from $7.5 million for the same period in 2023[163] - Interest and dividend income on a tax equivalent basis increased by $7.2 million, or 11.8%, to $68.2 million for the three months ended June 30, 2024, compared to $61.0 million for the same period in 2023[171] - Interest expense increased by $7.9 million, or 27.5%, to $36.6 million for the three months ended June 30, 2024, from $28.7 million for the same period in 2023[172] - Net interest and dividend income decreased by $707,000, or 2.2%, to $31.6 million for the three months ended June 30, 2024, compared to $32.3 million for the same period in 2023[174] - Noninterest expense increased by $1.6 million, or 6.1%, for the three months ended June 30, 2024, compared to the same period in 2023[181] Credit Quality - The allowance for credit losses on loans increased by $1.2 million, or 2.4%, to $49.1 million at June 30, 2024[153] - The provision for credit losses was $615,000 for the three months ended June 30, 2024, a decrease of $2.7 million, or 81.3%, compared to $3.3 million for the same period in 2023[181] - Net charge-offs totaled $195,000, or 0.02%, of average loans outstanding for the quarter ended June 30, 2024, compared to $2.7 million, or 0.23%, for the same period in 2023[183] - Nonperforming assets totaled $9.8 million at June 30, 2024, a significant decrease from $17.6 million at December 31, 2023, reflecting improved asset quality[202] - The allowance for credit losses to total loans was 1.02% as of June 30, 2024, compared to 1.01% at the end of 2023, indicating stable credit quality management[201] Interest Rate Risk and Liquidity - The Company’s primary market risk is interest-rate risk, managed through an Asset/Liability Committee that establishes exposure limits[210] - The Company’s liquidity sources include deposit inflows, loan repayments, and borrowings from the FHLB[217] - As of June 30, 2024, the company has immediate liquid resources in cash and cash equivalents totaling $235.1 million, primarily on deposit with FRBB[219] - The company had $385.3 million in brokered deposits as of June 30, 2024, to supplement core deposit fluctuations and loan growth[221] - The company believes it can meet its contractual obligations through adequate cash levels and liquidity management[222] Market and Economic Conditions - The estimated Economic Value of Equity (EVE) decreased by $182,118, or 32.2%, under a +300 basis points interest rate scenario as of June 30, 2024[215] - The Company’s net interest income simulation results indicate a potential decrease of 12.0% in Year One and 14.7% in Year Two under a +300 basis points interest rate scenario as of June 30, 2024[212] - Management continues to monitor the loan portfolio closely for signs of deterioration, particularly in the commercial real estate sector, amid rising vacancies and interest rates[203] - Management identified business-oriented hotels, non-anchored retail space, and metro office space as sectors potentially more susceptible to weakness, with total outstanding balances of $119.7 million, $48.6 million, and $6.2 million respectively[204] - The commercial real estate portfolio is primarily located in New England, with 75% secured by properties in Massachusetts and Rhode Island, highlighting regional concentration[203]