HarborOne Bancorp, Inc. (HONE) Earnings History

HarborOne Bancorp, Inc. - Q2 2025 Earnings

Filed at: Jul 23, 2025, 8:00 PM EDT|Read from source

EXECUTIVE SUMMARY

HarborOne Bancorp reported improved financial performance in Q2 2025, driven by net interest margin expansion and increased noninterest income. The company is progressing towards its merger with Eastern Bankshares, Inc., which has led to the suspension of its share repurchase program.

POSITIVE HIGHLIGHTS

  • •

    Net income increased by 46.5% to $8.1 million, or $0.20 per diluted share, compared to the prior quarter.

    positive
  • •

    Net interest margin improved 13 basis points quarter-over-quarter to 2.52%.

    positive
  • •

    Noninterest income increased 23.6% to $12.2 million, driven by higher mortgage banking income and deposit fee income.

    positive
  • •

    Tangible book value per share increased quarter over quarter to $12.09 from $11.90.

    positive

CONCERNS & RISKS

  • •

    Net income for the six months ended June 30, 2025, was $13.6 million, a decrease compared to $14.6 million for the same period in 2024.

    attention
  • •

    Total assets decreased $91.3 million, or 1.6%, from the prior quarter.

    attention
  • •

    Total deposits decreased $125.1 million from the prior quarter.

    attention
  • •

    Nonperforming loans to total loans increased to 0.69% from 0.64% in the prior quarter.

    attention
  • •

    Merger expenses of $1.7 million were recorded in the second quarter of 2025.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$45.44M
+5.0%
Prior year: $43.27M
Net Income
Quarterly
$8.06M
+10.4%
Prior year: $7.30M
Annual (YTD)
$13.60M
N/A
Prior year: $14.60M
EPS (Diluted)
Quarterly
$0.20
+11.1%
Prior year: $0.18
Operating Income
Quarterly
$10.63M
+11.8%
Prior year: $9.51M
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Operating Margin
Current Quarter
23.4%
Prior Year
22.0%
YoY Change
+141 bps
Net Margin
Current Quarter
17.7%
Prior Year
16.9%
YoY Change
+87 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

SPECIAL ITEMS & ADJUSTMENTS

Q2 2025
Merger expenses
Primarily for investment advisory and legal services.
+$1.7M
Q2 2025
Employee Retention Tax Credit
Includes interest.
+$0.547M
Total Impact
+$2.247M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Steady financial improvement in the second quarter, including net interest margin expansion, improved core returns on assets and equity, and continued management of expenses.

— HarborOne Bancorp, Inc., Q2 2025 2025 Earnings Call

Focus remains on providing superior service and a seamless transition to customers, communities, and employees during the merger process.

— HarborOne Bancorp, Inc., Q2 2025 2025 Earnings Call

Net interest margin improvement driven by higher prepayment fees, lower cost of funds, and lower average borrowings.

— HarborOne Bancorp, Inc., Q2 2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Allowance for credit losses on loans to total loans
1.0
-1.0% YoY
Prior year: 1.0
Net loans charged off as a percentage of average loans outstanding
0.1
+600.0% YoY
Prior year: 0.0
Nonperforming loans to total loans
0.7
+245.0% YoY
Prior year: 0.2

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.