HarborOne Bancorp, Inc. Announces 2025 First Quarter Results

BROCKTON, Mass.--(BUSINESS WIRE)-- 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 ended December 31, 2024.

First Quarter Financial Highlights:

• Net income of $5.5 million, or $0.14 per diluted share; the quarter-over-quarter decrease primarily reflects a $2.9 million decrease in mortgage banking income
• Net interest margin of 2.39%, up 3 basis-points on a quarter-over-quarter basis
• Noninterest expense was flat at $32.9 million
• Deposits, excluding brokered deposits, increased $79.6 million, or 1.9%, quarter-over-quarter
• The loans-to-deposits ratio improved 225 basis points during the quarter, from 106.63% to 104.38%
• Credit loss provision of $1.4 million, a $542,000 decrease compared to the fourth quarter of 2024
• The quarterly dividend increased 12.5%; executed 513,855 in share repurchases

“The first quarter represents a solid start to the year,” commented Joseph F. Casey, President & CEO. “Our Bank team achieved continued strong commercial and industrial loan growth of $33 million, decreased commercial real estate balances, lower loan delinquencies, and a reduction of 15 basis points in the cost of deposits, excluding brokered deposits. Our residential mortgage team delivered an 11.8% increase in year-over-year loan closings during the slowest quarter seasonally for that business, against a backdrop of elevated mortgage rates.”

Net Interest Income

Quarter-over-quarter, net interest and dividend income declined $358,000 from $31.8 million to $31.5 million, while net interest margin improved 3 basis points to 2.39%, impacted by:

• Yield on loans declined 8 basis points as floating-rate assets repriced during the quarter, and average loan balances decreased $30.0 million. Yield on loans was also negatively impacted by a decline in prepayment fees of $277,000.

• Cost of deposits, excluding brokered deposits, decreased 15 basis points, and average deposit balances, excluding brokered deposits, decreased $33.2 million, primarily due to seasonal decreases in savings and DDA accounts in the first two months of the quarter that were largely recovered in March.

• Borrowing costs improved 6 basis points, and average borrowings declined $20.0 million.

Noninterest Income

Quarter-over-quarter, total noninterest income decreased $3.8 million, or 27.7%, to $9.9 million, from $13.7 million, impacted by:

• HarborOne Mortgage, LLC (“HarborOne Mortgage”) realized a $2.7 million gain on loan sales from mortgage closings of $114.1 million in the first quarter of 2025, compared to $4.0 million from mortgage loan closings of $179.1 million in the fourth quarter, as an uptick in mortgage rates, and low for-sale inventory constrained loan demand.

• The mortgage servicing rights (“MSR”) valuation decreased $1.2 million compared to an increase of $2.3 million for the fourth quarter of 2024, including the impact of principal payments on the underlying mortgages of $782,000 and $1.0 million for the quarters ended March 31, 2025 and December 31, 2024, respectively. The first quarter MSR valuation loss of $1.1 million was offset by a $561,000 economic hedging gain, whereas the fourth quarter of 2024 included a MSR valuation gain of $2.2 million offset by a $1.3 million hedging loss.

• Deposit account fees decreased $871,000, primarily as a result of a decrease in debit card interchange fees of $493,000 due to a catch-up adjustment in the fourth quarter for the annual VISA volume incentive, and a $181,000 seasonal decrease in debit card interchange income.

Noninterest Expense

Total noninterest expense was flat at $32.9 million; quarter-over-quarter variances of note were:

• Occupancy and equipment expense increased $150,000 primarily due to seasonal increases for snow removal and heating costs.

• Loan expenses decreased $94,000, consistent with lower loan originations in the first quarter of 2025.

• Deposit insurance decreased $113,000, reflecting a decrease in the assessment base.

• Other expenses increased $183,000, primarily reflecting an increase in cloud computing expenses as we continue to evolve our technology stack and fees charged for FHLB letters of credit to secure municipal deposits.

Balance Sheet

Quarter-over-quarter, total assets decreased $52.8 million, or 0.9%, to $5.70 billion, from $5.75 billion, impacted by:

• Loans declined $31.5 million, or 0.7%, to $4.82 billion, from $4.85 billion the prior quarter. Commercial real estate and construction loans decreased $44.5 million, favoring payoffs over renewals for loans secured by commercial real estate that are not included in our strongest customer relationships. Commercial and industrial loans increased $33.0 million. Residential real estate and consumer loans decreased $20.0 million, partly reflecting a decrease in loan purchases from HarborOne Mortgage during the quarter.

• Available-for-sale securities increased $1.7 million to $265.6 million from the prior quarter. The unrealized loss on securities available for sale decreased to $58.8 million, as compared to $65.2 million in the prior quarter. Securities held to maturity were steady at $19.2 million.

• Total deposits increased $68.0 million to $4.62 billion from $4.55 billion the prior quarter. Non-certificate accounts increased $73.2 million and term certificate accounts increased $6.4 million. Brokered deposits decreased $11.6 million. As of March 31, 2025, FDIC-insured deposits were approximately 74% of total deposits, including Bank subsidiary deposits.

• Borrowed funds decreased $117.0 million to $399.5 million compared to $516.6 million at the prior quarter end. As of March 31, 2025, the Bank had $1.42 billion in available borrowing capacity across multiple relationships.

• Total stockholders’ equity was $576.0 million, compared to $575.0 million at the prior quarter end. Stockholders’ equity increased 0.2% when compared to the prior quarter, as net income and an increase in the fair value of available-for-sale securities were partially offset by share repurchases and dividend payments.

• The tangible-common-equity-to-tangible-assets ratio⁽¹⁾ was 9.15% at March 31, 2025, compared to 9.05% at December 31, 2024. Book value per share and tangible book value per share⁽¹⁾ increased modestly quarter over quarter from $13.15 to $13.27 and from $11.78 to $11.90, respectively.

⁽¹⁾ Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures.

Asset Quality and Allowance for Credit Losses

The Company recorded a $1.4 million provision for credit losses for the quarter ended March 31, 2025. The provision for loan credit losses was $1.9 million and the provision for unfunded commitments was a negative $506,000. The provision for loan credit losses was primarily due to a further specific reserve allocation for a previously identified classified commercial real estate loan, partially offset by a decrease in loan balances and qualitative factor adjustments. The specific reserve allocation recorded on the commercial real estate loan noted above was $3.6 million based on the re-evaluation of collateral due to a revised exit strategy, adding to a specific reserve allocation of $4.7 million. The aggregate allowance of $8.3 million was charged off in the first quarter of 2025. Net charge-offs totaled $8.7 million, or 0.72% of average loans outstanding on an annualized basis for the quarter ended March 31, 2025. For the quarter ended December 31, 2024, the Company had recorded a provision for credit losses of $1.9 million, reflecting a further specific reserve allocation for a previously identified classified commercial real estate loan, partially offset by qualitative factor adjustments, and a decrease in loan balance. Net charge-offs totaled $58,000 for the quarter ended December 31, 2024.

The ACL on loans was $49.3 million, or 1.02% of total loans, at March 31, 2025, compared to $56.1 million, or 1.16% of total loans, at December 31, 2024. The ACL on unfunded commitments, included in other liabilities on the unaudited Consolidated Balance Sheet, amounted to $3.0 million at March 31, 2025, compared to $3.5 million at December 31, 2024. Total nonperforming assets were $30.9 million and 0.54% of total assets at March 31, 2025, compared to $29.5 million and 0.51% of total assets at December 31, 2024. As of March 31, 2025 and December 31, 2024, total criticized and classified commercial loans amounted to $187.1 million and $178.6 million, respectively. The quarterly increase in total criticized and classified commercial loans primarily reflects the addition of three new credits in the special mention category as a result of continued pressure on commercial real estate values, offset by the charge-off noted above. In the quarter ended March 31, 2025, non-performing commercial real estate loans decreased $7.8 million, primarily a result of the charge-off noted above. Non-performing commercial and industrial loans increased $8.3 million, primarily the result of a single credit included in the healthcare segment.

About HarborOne Bancorp, Inc.

HarborOne Bancorp, Inc. is the holding company for HarborOne Bank, a Massachusetts-chartered trust company. HarborOne Bank serves the financial needs of consumers, businesses, and municipalities throughout Eastern Massachusetts and Rhode Island through a network of 30 full-service banking centers located in Massachusetts and Rhode Island, and commercial lending offices in Boston, Massachusetts and Providence, Rhode Island. HarborOne Bank also provides a range of educational resources through “HarborOne U,” with free digital content, webinars, and recordings for small business and personal financial education. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, provides mortgage lending services throughout New England and other states.

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 shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, changes in general business and economic conditions (including, the impact of recently imposed tariffs by the U.S. Administration and foreign governments, inflation and concerns about liquidity) on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in interest rates; changes in customer behavior; ongoing turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; increases in loan default and charge-off rates; decreases in the value of securities in the Company’s investment portfolio; fluctuations in real estate values; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, and future pandemics; changes in regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10‑K and Quarterly Reports on Form 10‑Q as filed with the SEC, which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, HarborOne’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Use of Non-GAAP Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures including: “core net income,” “core earnings per common share,” “core return on average earning assets,” “core return on average earning equity,” “efficiency ratio,” “core efficiency ratio,” “tax equivalent efficiency ratio,” “tax equivalent core efficiency ratio,” “total adjusted noninterest expense”, “core noninterest expense,” “tax equivalent net interest and dividend income,” “total core noninterest income,” “tax equivalent total core revenue,” “tangible common equity,” “average tangible common equity,” “tangible assets,” “tangible book value per share,” “tangible common equity to tangible assets,” “return on average tangible common equity,” “core return on average tangible common equity” and certain ratios derived from these measures. Non-GAAP measures are utilized by management, regulators and market analysts to evaluate the Company’s financial position and therefore such information is useful to investors.

The tax equivalent basis adjusts for the tax-favored status from certain loans held by the Bank that are not taxable for federal income tax purposes.

Core net income, core noninterest income and core noninterest expense exclude certain items that management does not consider indicative of ongoing financial performance or enhances comparability of results with prior periods. These adjustments include gain or loss on the sale of certain assets and release of reserves for uncertain tax positions.

These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

HarborOne Bancorp, Inc. Selected Financial Highlights (Unaudited)
		For the Quarters Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
		(Dollars in thousands)
Earnings data
Net interest and dividend income		$	31,469		$	31,827		$	31,893		$	31,350		$	30,582
Noninterest income		$	9,891		$	13,689		$	10,568		$	11,919		$	10,741
Total revenue		$	41,360		$	45,516		$	42,461		$	43,269		$	41,323
Noninterest expense		$	32,850		$	32,873		$	32,268		$	33,144		$	31,750
Pre-tax, pre-provision income (loss)		$	8,510		$	12,643		$	10,193		$	10,125		$	9,573
Provision for credit (benefits) losses		$	1,385		$	1,927		$	5,903		$	615		$	(168)
Income (loss) before income taxes		$	7,125		$	10,716		$	4,290		$	9,510		$	9,741
Net income (loss)		$	5,500		$	8,887		$	3,924		$	7,296		$	7,300
Core net income (1)		$	5,500		$	8,341		$	3,924		$	6,689		$	7,300
Per-share data
Earnings per share, diluted		$	0.14		$	0.21		$	0.10		$	0.18		$	0.17
Core earnings per share, diluted(1)		$	0.14		$	0.20		$	0.10		$	0.16		$	0.17
Book value per share		$	13.27		$	13.15		$	13.24		$	12.99		$	12.82
Tangible book value per share(1)		$	11.90		$	11.78		$	11.88		$	11.63		$	11.48
Profitability
Return on average assets			0.39	%		0.62	%		0.27	%		0.50	%		0.50	%
Core return on average assets(1)			0.39	%		0.58	%		0.27	%		0.45	%		0.50	%
Return on average equity			3.79	%		6.08	%		2.69	%		5.07	%		5.00	%
Core Return on average equity(1)			3.79	%		5.71	%		2.69	%		4.54	%		5.00	%
Return on average tangible common equity(1)			4.23	%		6.78	%		3.00	%		5.67	%		5.57	%
Core return on average tangible common equity(1)			4.23	%		6.36	%		3.00	%		5.19	%		5.57	%
Net interest margin on a fully tax equivalent basis(1)			2.39	%		2.36	%		2.36	%		2.31	%		2.25	%
Cost of total deposits			2.48	%		2.62	%		2.68	%		2.53	%		2.49	%
Efficiency ratio(1)			78.97	%		71.81	%		75.55	%		76.16	%		76.38	%
Core efficiency ratio(1)			78.97	%		71.81	%		75.55	%		77.54	%		76.38	%
Tax equivalent efficiency ratio(1)			78.09	%		71.09	%		74.75	%		75.72	%		75.92	%
Tax equivalent core efficiency ratio(1)			78.09	%		71.09	%		74.75	%		77.08	%		75.92	%
Balance Sheet
Total assets		$	5,700,330		$	5,753,133		$	5,775,967		$	5,787,035		$	5,862,222
Total loans		$	4,821,033		$	4,852,499		$	4,879,503		$	4,839,232		$	4,776,685
Total deposits		$	4,618,721		$	4,550,753		$	4,536,177		$	4,458,297		$	4,394,024
Total loans / total deposits			104.38	%		106.63	%		107.57	%		108.54	%		108.71	%
Asset quality
Allowance for credit losses ("ACL")		$	49,323		$	56,101		$	54,004		$	49,139		$	48,185
Nonperforming assets		$	30,908		$	29,473		$	28,408		$	9,766		$	12,201
Non-performing loans to total loans			0.64	%		0.61	%		0.58	%		0.20	%		0.25	%
Allowance for credit losses on loans to non-performing loans			159.61	%		190.41	%		190.10	%		503.16	%		396.26	%
Allowance for credit losses on loans to total loans			1.02	%		1.16	%		1.11	%		1.02	%		1.01	%
Net loans charged off as a percentage of average loans outstanding			0.72	%		-	%		0.02	%		0.02	%		0.01	%
Capital adequacy
Stockholders' equity / assets			10.10	%		9.99	%		10.11	%		9.98	%		9.85	%
Tangible common equity / tangible assets(1)			9.15	%		9.05	%		9.17	%		9.03	%		8.92	%
Common equity tier 1 ratio ("CET1")(1)			11.86	%		11.79	%		11.67	%		11.73	%		11.97	%
Risk weighted assets		$	4,738,746		$	4,795,304		$	4,827,022		$	4,822,128		$	4,727,354
(1)Non-GAAP financial measure. Refer to the Reconciliation of Non-GAAP Financial Measures

HarborOne Bancorp, Inc. Consolidated Balance Sheet Trend (Unaudited)
		Period ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(in thousands)		2025			2024			2024			2024			2024
Assets
Cash and due from banks		$	44,383		$	44,090		$	39,668		$	48,097		$	36,340
Short-term investments			186,109			186,981			184,611			186,965			357,101
Total cash and cash equivalents			230,492			231,071			224,279			235,062			393,441
Securities available for sale, at fair value			265,644			263,904			276,817			269,078			291,008
Securities held to maturity, at amortized cost			19,211			19,627			19,625			19,725			19,724
Federal Home Loan Bank stock, at cost			18,330			23,277			17,476			25,311			26,565
Asset held for sale			-			-			-			-			348
Loans held for sale, at fair value			19,304			36,768			28,467			41,814			16,434
Loans:
Commercial real estate			2,272,480			2,280,309			2,321,148			2,380,881			2,355,672
Commercial construction			216,013			252,691			270,389			233,926			234,811
Commercial and industrial			627,480			594,453			549,908			499,043			471,215
Total commercial loans			3,115,973			3,127,453			3,141,445			3,113,850			3,061,698
Residential real estate			1,689,681			1,707,556			1,719,882			1,706,678			1,695,686
Consumer			15,379			17,490			18,176			18,704			19,301
Loans			4,821,033			4,852,499			4,879,503			4,839,232			4,776,685
Less: Allowance for credit losses on loans			(49,323)			(56,101)			(54,004)			(49,139)			(48,185)
Net loans			4,771,710			4,796,398			4,825,499			4,790,093			4,728,500
Mortgage servicing rights, at fair value			42,620			44,500			43,067			46,209			46,597
Goodwill			59,042			59,042			59,042			59,042			59,042
Other intangible assets			568			757			947			1,136			1,326
Other assets			273,409			277,789			280,748			299,565			279,237
Total assets		$	5,700,330		$	5,753,133		$	5,775,967		$	5,787,035		$	5,862,222
Liabilities and Stockholders' Equity
Deposits:
Demand deposit accounts		$	703,736		$	690,647		$	713,379		$	689,800		$	677,152
NOW accounts			340,194			298,337			296,322			308,016			305,071
Regular savings and club accounts			908,136			895,232			926,192			989,720			1,110,404
Money market deposit accounts			1,200,600			1,195,209			1,162,930			1,100,215			1,061,145
Term certificate accounts			1,076,195			1,069,844			1,063,672			985,293			852,326
Brokered deposits			389,860			401,484			373,682			385,253			387,926
Total deposits			4,618,721			4,550,753			4,536,177			4,458,297			4,394,024
Borrowings			399,547			516,555			539,364			619,372			754,380
Other liabilities and accrued expenses			106,095			110,814			116,224			132,037			136,135
Total liabilities		$	5,124,363		$	5,178,122		$	5,191,765		$	5,209,706		$	5,284,539
Common stock			598			598			598			598			598
Additional paid-in capital			490,327			489,532			488,983			487,980			487,277
Unearned compensation - ESOP			(23,488)			(23,947)			(24,407)			(24,866)			(25,326)
Retained earnings			375,710			373,861			368,222			367,584			363,591
Treasury stock			(221,516)			(215,138)			(210,197)			(205,944)			(199,853)
Accumulated other comprehensive loss			(45,664)			(49,895)			(38,997)			(48,023)			(48,604)
Total stockholders' equity		$	575,967		$	575,011		$	584,202		$	577,329		$	577,683
Total liabilities and stockholders' equity		$	5,700,330		$	5,753,133		$	5,775,967		$	5,787,035		$	5,862,222

HarborOne Bancorp, Inc. Consolidated Statements of Net Income - Trend (Unaudited)
		Quarters Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands, except share data)		2025			2024			2024			2024			2024
Interest and dividend income:
Interest and fees on loans		$	59,872		$	62,415		$	63,595		$	61,512		$	59,937
Interest on loans held for sale			296			517			546			347			243
Interest on securities			1,993			1,996			1,965			2,121			2,065
Other interest and dividend income			2,278			2,591			2,928			3,971			4,659
Total interest and dividend income			64,439			67,519			69,034			67,951			66,904
Interest expense:
Interest on deposits			27,643			29,963			29,969			27,272			26,899
Interest on borrowings			5,327			5,729			7,172			9,329			9,423
Total interest expense			32,970			35,692			37,141			36,601			36,322
Net interest and dividend income			31,469			31,827			31,893			31,350			30,582
Provision (benefit) for credit losses			1,385			1,927			5,903			615			(168)
Net interest and dividend income, after provision (benefit) for credit losses			30,084			29,900			25,990			30,735			30,750
Noninterest income:
Mortgage banking income:
Gain on sale of mortgage loans			2,716			3,952			3,752			3,143			2,013
Changes in mortgage servicing rights fair value			(1,372)			(19)			(2,641)			(1,098)			54
Other			2,108			2,431			2,390			2,356			2,276
Total mortgage banking income			3,452			6,364			3,501			4,401			4,343
Deposit account fees			5,153			6,024			5,370			5,223			4,983
Income on retirement plan annuities			119			121			122			141			145
Gain on sale of asset held for sale			-			-			-			1,809			-
Loss on sale of securities			-			-			-			(1,041)			-
Bank-owned life insurance income			743			769			777			758			746
Other income			424			411			798			628			524
Total noninterest income			9,891			13,689			10,568			11,919			10,741
Noninterest expenses:
Compensation and benefits			18,785			18,853			18,551			18,976			17,636
Occupancy and equipment			4,627			4,477			4,628			4,636			4,781
Data processing			2,625			2,626			2,711			2,375			2,479
Loan expense			431			525			457			461			371
Marketing			588			599			549			1,368			816
Professional fees			1,382			1,451			1,292			1,236			1,457
Deposit insurance			1,050			1,163			1,028			993			1,164
Other expenses			3,362			3,179			3,052			3,099			3,046
Total noninterest expenses			32,850			32,873			32,268			33,144			31,750
Income before income taxes			7,125			10,716			4,290			9,510			9,741
Income tax provision			1,625			1,829			366			2,214			2,441
Net income		$	5,500		$	8,887		$	3,924		$	7,296		$	7,300
Earnings per common share:
Basic		$	0.14		$	0.21		$	0.10		$	0.18		$	0.17
Diluted		$	0.14		$	0.21		$	0.10		$	0.18		$	0.17
Weighted average shares outstanding:
Basic			40,344,922			40,700,783			40,984,857			41,293,787			41,912,421
Diluted			40,605,799			41,062,421			41,336,985			41,370,289			42,127,037

HarborOne Bancorp, Inc. Asset Quality (Unaudited)
		As of or for the Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Non-performing Assets
Nonaccruing loans:
Commercial real estate and construction		$	8,610		$	16,836		$	17,171		$	-		$	1,496
Commercial and industrial			10,538			2,204			1,743			1,773			1,744
Residential mortgages, construction, and HELOC			11,705			10,409			9,451			7,949			8,866
Consumer			49			14			43			44			54
Total nonaccruing loans			30,902			29,463			28,408			9,766			12,160
Other real estate owned			-			-			-			-			-
Repossessed assets			6			10			-			-			41
Total nonperforming assets		$	30,908		$	29,473		$	28,408		$	9,766		$	12,201
Total nonperforming loans to total loans			0.64	%		0.61	%		0.58	%		0.20	%		0.25	%
Total nonperforming assets to total assets			0.54	%		0.51	%		0.49	%		0.17	%		0.21	%
Allowance for credit losses on loans
Beginning balance		$	56,101		$	54,004		$	49,139		$	48,185		$	47,972
Net (charge-offs) recoveries:
Commercial real estate and construction			(8,300)			40			3			-			100
Commercial and industrial			(362)			(57)			(146)			(184)			(182)
Residential mortgages and HELOC			10			1			-			5			3
Consumer			(17)			(42)			(39)			(16)			(46)
Total net charge-offs:			(8,669)			(58)			(182)			(195)			(125)
Provision for loan credit losses			1,891			2,155			5,047			1,149			338
Ending balance		$	49,323		$	56,101		$	54,004		$	49,139		$	48,185
Allowance for credit losses on loans to total loans			1.02	%		1.16	%		1.11	%		1.02	%		1.01	%
Allowance for credit losses on loans to nonaccruing loans			159.61	%		190.41	%		190.10	%		503.16	%		396.26	%
Annualized net charge-offs (recoveries)/average loans			0.72	%		0.00	%		0.02	%		0.02	%		0.01	%
Provision (credit) for unfunded commitments		$	(506)		$	(228)		$	856		$	(534)		$	(506)
Allowance for unfunded commitments		$	3,000		$	3,506		$	3,734		$	2,878		$	3,412
Delinquency
Total delinquent loans		$	29,821		$	37,427		$	21,325		$	12,990		$	12,160
Total delinquent loans to total loans			0.62	%		0.77	%		0.44	%		0.27	%		0.25	%

HarborOne Bancorp, Inc. Average Balances and Yield Trend (Unaudited)
		Quarters Ended
		March 31, 2025								December 31, 2024								March 31, 2024
		Average								Average								Average
		Outstanding						Yield/		Outstanding						Yield/		Outstanding						Yield/
		Balance			Interest			Cost (8)		Balance			Interest			Cost (8)		Balance			Interest			Cost (8)
		(dollars in thousands)
Interest-earning assets:
Investment securities (1)		$	346,902		$	1,993		2.33	%	$	350,041		$	1,996		2.27	%	$	372,787		$	2,065		2.23	%
Other interest-earning assets			213,400			2,278		4.33			203,695			2,591		5.06			356,470			4,659		5.26
Loans held for sale			17,237			296		6.96			31,358			517		6.56			14,260			243		6.85
Loans
Commercial loans (2)(3)			3,125,369			41,796		5.42			3,139,356			43,845		5.56			3,040,835			41,653		5.51
Residential real estate loans (3)(4)			1,696,444			18,243		4.36			1,711,481			18,685		4.34			1,700,694			18,175		4.30
Consumer loans (3)			16,601			294		7.18			17,583			343		7.76			20,539			358		7.01
Total loans			4,838,414			60,333		5.06			4,868,420			62,873		5.14			4,762,068			60,186		5.08
Total interest-earning assets			5,415,953			64,900		4.86			5,453,514			67,977		4.96			5,505,585			67,153		4.91
Noninterest-earning assets			290,734								295,057								299,153
Total assets		$	5,706,687							$	5,748,571							$	5,804,738
Interest-bearing liabilities:
Savings accounts		$	908,434			3,050		1.36		$	924,514			3,339		1.44		$	1,186,201			5,523		1.87
NOW accounts			303,719			127		0.17			292,332			110		0.15			289,902			75		0.10
Money market accounts			1,190,811			9,648		3.29			1,184,006			10,565		3.55			994,353			9,313		3.77
Certificates of deposit			1,060,313			11,343		4.34			1,075,594			12,391		4.58			855,070			8,554		4.02
Brokered deposits			387,294			3,475		3.64			376,154			3,558		3.76			356,459			3,434		3.87
Total interest-bearing deposits			3,850,571			27,643		2.91			3,852,600			29,963		3.09			3,681,985			26,899		2.94
Total borrowings			493,206			5,327		4.38			512,802			5,729		4.44			764,623			9,423		4.96
Total interest-bearing liabilities			4,343,777			32,970		3.08			4,365,402			35,692		3.25			4,446,608			36,322		3.29
Noninterest-bearing liabilities:
Noninterest-bearing deposits			677,314								697,364								654,436
Other noninterest-bearing liabilities			105,747								101,371								119,289
Total liabilities			5,126,838								5,164,137								5,220,333
Total stockholders' equity			579,849								584,433								584,405
Total liabilities and stockholders' equity		$	5,706,687							$	5,748,571							$	5,804,738
Tax equivalent net interest income						31,930								32,285								30,831
Tax equivalent interest rate spread (5)								1.78	%							1.71	%							1.62	%
Less: tax equivalent adjustment						461								458								249
Net interest income as reported					$	31,469							$	31,827							$	30,582
Net interest-earning assets (6)		$	1,072,176							$	1,088,112							$	1,058,977
Net interest margin (7)								2.36	%							2.32	%							2.23	%
Tax equivalent effect								0.03								0.04								0.02
Net interest margin on a fully tax equivalent basis								2.39	%							2.36	%							2.25	%
Ratio of interest-earning assets to interest-bearing liabilities			124.68	%							124.93	%							123.82	%
Supplemental information:
Total deposits, including demand deposits		$	4,527,885		$	27,643				$	4,549,964		$	29,963				$	4,336,421		$	26,899
Cost of total deposits								2.48	%							2.62	%							2.49	%
Total funding liabilities, including demand deposits		$	5,021,091		$	32,970				$	5,062,766		$	35,692				$	5,101,044		$	36,322
Cost of total funding liabilities								2.66	%							2.80	%							2.86	%

(1) Includes securities available for sale and securities held to maturity.

(2) Tax-exempt income on industrial revenue bonds is included in commercial loans on a tax-equivalent basis.

(3) Includes nonaccruing loan balances and interest received on such loans.

(4) Includes the basis adjustments of certain loans included in fair value hedging relationships.

(5) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(6) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(7) Net interest margin represents net interest income divided by average total interest-earning assets.

(8) Annualized

HarborOne Bancorp, Inc. Segments Key Financial Data (Unaudited)
		Quarters Ended
Statements of Net Income for HarborOne Bank Segment:		March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
		(Dollars in thousands)
Net interest and dividend income		$	31,315		$	31,681		$	31,780		$	31,098		$	30,485
Provision (benefit) for credit losses			1,385			1,927			5,903			615			(168)
Net interest and dividend income, after provision for credit losses			29,930			29,754			25,877			30,483			30,653
Mortgage banking income:
Intersegment loss			(81)			(161)			(357)			(464)			(236)
Changes in mortgage servicing rights fair value			(134)			80			(220)			(74)			(32)
Other			167			169			175			180			180
Total mortgage banking (loss) income			(48)			88			(402)			(358)			(88)
Other noninterest income:
Deposit account fees			5,153			6,024			5,370			5,223			4,983
Income on retirement plan annuities			119			121			122			141			145
Gain on sale of asset held for sale			-			-			-			1,809			-
Loss on sale of securities			-			-			-			(1,041)			-
Bank-owned life insurance income			743			769			777			758			746
Other income			425			383			798			624			517
Total noninterest income			6,392			7,385			6,665			7,156			6,303
Total noninterest expenses			28,185			27,400			26,752			27,791			27,407
Income before income taxes			8,137			9,739			5,790			9,848			9,549
Provision for income taxes			1,903			2,015			875			2,310			2,386
Net income		$	6,234		$	7,724		$	4,915		$	7,538		$	7,163
Efficiency ratio (Non-GAAP)
Noninterest expense, as presented (GAAP)		$	28,185		$	27,400		$	26,752		$	27,791		$	27,407
Less: Amortization of other intangible assets			190			190			190			189			189
Total adjusted noninterest expense(non-GAAP)	(A)	$	27,995		$	27,210		$	26,562		$	27,602		$	27,218
Net interest and dividend income (GAAP)		$	31,315		$	31,681		$	31,780		$	31,098		$	30,485
Plus: tax equivalent adjustment			461			458			452			256			249
Tax equivalent net interest and dividend income (non-GAAP)	(B)	$	31,776		$	32,139		$	32,232		$	31,354		$	30,734
Total noninterest income	(C)	$	6,392		$	7,385		$	6,665		$	7,156		$	6,303
Less:
Gain on sale of asset held for sale			-			-			-			1,809			-
Loss on sale of securities			-			-			-			(1,041)			-
Core total noninterest income (non-GAAP)	(D)	$	6,392		$	7,385		$	6,665		$	6,388		$	6,303
Tax equivalent efficiency ratio (non-GAAP)	(A)/(B+C)		73.35	%		68.84	%		68.29	%		71.67	%		73.49	%
Tax equivalent core efficiency ratio (non-GAAP)	(A)/(B+D)		73.35	%		68.84	%		68.29	%		73.13	%		73.49	%

HarborOne Bancorp, Inc. Segments Key Financial Data (Unaudited)
		Quarters Ended
Statements of Net Income for HarborOne Mortgage Segment:		March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
		(Dollars in thousands)
Net interest and dividend income		$	149		$	140		$	105		$	240		$	80
Mortgage banking income:
Gain on sale of mortgage loans			2,716			3,954			3,752			3,141			2,013
Intersegment gain			209			48			277			464			308
Changes in mortgage servicing rights:
Amortization and payoffs			(712)			(939)			(1,011)			(888)			(696)
Change in fair value due to assumptions			(1,087)			2,170			(2,255)			144			1,003
Net gain(loss) from economic hedging			561			(1,330)			845			(280)			(221)
Total changes in mortgage servicing rights			(1,238)			(99)			(2,421)			(1,024)			86
Other			1,941			2,260			2,215			2,177			2,097
Total mortgage banking income			3,628			6,163			3,823			4,758			4,504
Other noninterest income			-			-			-			4			10
Total noninterest income			3,628			6,163			3,823			4,762			4,514
Total noninterest expenses			4,504			5,490			5,600			5,269			4,311
Income (loss) before income taxes			(727)			813			(1,672)			(267)			283
Income tax (benefit) provision			(236)			(320)			(535)			(76)			60
Net income (loss)		$	(491)		$	1,133		$	(1,137)		$	(191)		$	223
Closed loan volume		$	114,136		$	179,077		$	209,525		$	172,994		$	102,102
Gain on sale margin			2.38	%		2.21	%		1.79	%		1.82	%		1.97	%
Capitalized Mortgage Servicing Rights
Beginning balance		$	41,544		$	40,191		$	43,113		$	43,427		$	42,910
Originated servicing rights			53			122			344			430			210
Amortization and payoffs			(712)			(939)			(1,011)			(888)			(696)
Changes in fair value			(1,087)			2,170			(2,255)			144			1,003
Ending balance		$	39,798		$	41,544		$	40,191		$	43,113		$	43,427

HarborOne Bancorp, Inc. Non-GAAP Reconciliation (Unaudited)
		As of or for the Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Core Net Income
Net income, as presented (GAAP)	(A)	$	5,500		$	8,887		$	3,924		$	7,296		$	7,300
Less: Gain on sale of asset held for sale, net of taxes			-			-			-			1,429			-
Less: Loss on sale of securities, net of taxes			-			-			-			(822)			-
Less: Release of uncertain tax position reserve			-			546			-			-			-
Core Net Income (non-GAAP)	(B)	$	5,500		$	8,341		$	3,924		$	6,689		$	7,300
Weighted average shares outstanding for the period:
Basic	(C)		40,344,922			40,700,783			40,984,857			41,293,787			41,912,421
Diluted	(D)		40,605,799			41,062,421			41,336,985			41,370,289			42,127,037
Earnings per common share (GAAP):
Basic	(A)/(C)	$	0.14		$	0.21		$	0.10		$	0.18		$	0.17
Diluted	(A)/(D)	$	0.14		$	0.21		$	0.10		$	0.18		$	0.17
Core Earnings per common share (non-GAAP):
Basic	(B)/(C)	$	0.14		$	0.20		$	0.10		$	0.16		$	0.17
Diluted	(B)/(D)	$	0.14		$	0.20		$	0.10		$	0.16		$	0.17
Return on average assets, as presented (GAAP)	(A)/(E)		0.39	%		0.62	%		0.27	%		0.50	%		0.50	%
Core return on average earning assets(non-GAAP)	(B)/(E)		0.39	%		0.58	%		0.27	%		0.46	%		0.50	%
Average assets	(E)	$	5,706,687		$	5,748,571		$	5,753,823		$	5,807,997		$	5,804,738
Return on average equity, as presented (GAAP)	(A)/(F)		3.79	%		6.08	%		2.69	%		5.07	%		5.00	%
Core return on average earning equity(non-GAAP)	(B)/(F)		3.79	%		5.71	%		2.69	%		4.65	%		5.00	%
Average equity	(F)	$	579,849		$	584,433		$	584,049		$	575,321		$	584,405
Efficiency Ratio
Noninterest expense, as presented (GAAP)		$	32,850		$	32,873		$	32,268		$	33,144		$	31,750
Less: Amortization of other intangible assets			190			190			190			189			189
Total adjusted noninterest expense(non-GAAP)	(G)	$	32,660		$	32,683		$	32,078		$	32,955		$	31,561
Core noninterest expense (non-GAAP)	(H)	$	32,660		$	32,683		$	32,078		$	32,955		$	31,561
Net interest and dividend income (GAAP)	(I)	$	31,469		$	31,827		$	31,893		$	31,350		$	30,582
Plus: tax equivalent adjustment			461			458			452			256			249
Tax equivalent net interest and dividend income (non-GAAP)	(J)		31,930			32,285			32,345			31,606			30,831
Total noninterest income	(K)		9,891			13,689			10,568			11,919			10,741
Less:
Gain on sale of asset held for sale			-			-			-			1,809			-
Loss on sale of securities			-			-			-			(1,041)			-
Total core noninterest income (non-GAAP)	(L)		9,891			13,689			10,568			11,151			10,741
Tax equivalent total core revenue (non-GAAP)	(M)	$	41,821		$	45,974		$	42,913		$	42,757		$	41,572
Efficiency ratio (non-GAAP)	(G)/(I)+(K)		78.97	%		71.81	%		75.55	%		76.16	%		76.38	%
Core efficiency ratio (non-GAAP)	(H)/(I)+(L)		78.97	%		71.81	%		75.55	%		77.54	%		76.38	%
Tax equivalent efficiency ratio (non-GAAP)	(G)/(J)+(K)		78.09	%		71.09	%		74.75	%		75.72	%		75.92	%
Tax equivalent core efficiency ratio (non-GAAP)	(H)/(M)		78.09	%		71.09	%		74.75	%		77.08	%		75.92	%

HarborOne Bancorp, Inc. Non-GAAP Reconciliation (Unaudited)
		As of or for the Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Tangible equity and assets
Total stockholders' equity, as presented (GAAP)	(N)	$	575,967		$	575,011		$	584,202		$	577,329		$	577,683
Less: Goodwill and other intangible assets			59,610			59,799			59,989			60,178			60,368
Tangible common equity(non-GAAP)	(O)	$	516,357		$	515,212		$	524,213		$	517,151		$	517,315
Average stockholders' equity	(P)	$	579,849		$	584,433		$	584,049		$	575,321		$	584,405
Less: Average goodwill and other intangible assets			59,709			59,888			60,077			60,262			60,465
Average tangible common equity(non-GAAP)	(Q)	$	520,140		$	524,545		$	523,972		$	515,059		$	523,940
Total assets, as presented(GAAP)		$	5,700,330		$	5,753,133		$	5,775,967		$	5,787,035		$	5,862,222
Less: Goodwill and other intangible assets			59,610			59,799			59,989			60,178			60,368
Tangible assets(non-GAAP)	(R)	$	5,640,720		$	5,693,334		$	5,715,978		$	5,726,857		$	5,801,854
Common stock outstanding	(S)		43,408,480			43,723,278			44,130,134			44,459,490			45,055,006
Book value per share	(N)/(S)	$	13.27		$	13.15		$	13.24		$	12.99		$	12.82
Tangible book value per share (non-GAAP)	(O)/(S)	$	11.90		$	11.78		$	11.88		$	11.63		$	11.48
Tangible common equity/tangible assets (non-GAAP)	(O)/(R)		9.15	%		9.05	%		9.17	%		9.03	%		8.92	%
Return on average tangible common equity (non-GAAP)	(A)/(Q)		4.23	%		6.78	%		3.00	%		5.67	%		5.57	%
Core return on average tangible common equity (non-GAAP)	(B)/(Q)		4.23	%		6.36	%		3.00	%		5.19	%		5.57	%

Category: Earnings Release

View source version on businesswire.com: https://www.businesswire.com/news/home/20250424894927/en/

Stephen W. Finocchio, Executive vice President and Chief Financial Officer

(508)-895-1180

sfinocchio@harborone.com

Source: HarborOne Bancorp, Inc.