HarborOne Bancorp (HONE) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $3.9 million ($0.10 per diluted share), down from $8.4 million in Q3 2023 and $7.3 million in Q2 2024; nine-month net income was $18.5 million, down from $23.2 million year-over-year.

• Total assets increased 1.9% to $5.78 billion at September 30, 2024, driven by $129.2 million loan growth; Q3 loan growth was $40.3 million (3.3% annualized).

• Deposits rose 3.4% to $4.54 billion, with Q3 client deposit growth of $89.5 million (8.8% annualized) and increases in brokered and municipal deposits.

• Net interest margin improved to 2.33% in Q3 2024 from 2.29% in Q2 2024; tangible book value per share rose to $11.88.

• Share repurchases totaled 1.5 million shares YTD at an average price of $10.76 per share; 347,670 shares repurchased in Q3 2024 at $12.23 per share.

Financial highlights

• Net interest and dividend income for Q3 2024 was $31.9 million, up from $31.4 million in Q2 2024 and $31.1 million in Q3 2023; nine-month total was $93.8 million, down 3.8%.

• Provision for credit losses increased to $5.9 million in Q3 2024, mainly due to a $17.2 million suburban office credit on nonaccrual status and a $4.7 million specific reserve.

• Noninterest income for Q3 2024 was $10.6 million, down from $11.6 million in Q3 2023; nine-month noninterest income was $33.2 million, with declines due to lower mortgage banking income and MSR valuation losses.

• Noninterest expense for Q3 2024 was $32.3 million, down 2.6% sequentially but up 1.2% year-over-year.

• Effective tax rate dropped to 8.53% in Q3 2024 due to a discrete tax benefit from amended returns.

Outlook and guidance

• Management expects further margin improvement as cost of funds declines with lower market interest rates.

• The company expects to maintain strong liquidity and capital positions, with ample borrowing capacity and ongoing share repurchases and dividends.