HarborOne Bancorp(HONE) - 2024 Q4 - Annual Report

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]