HarborOne Bancorp (HONE) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $8.9 million ($0.21 per diluted share), up 126.5% sequentially, reflecting improved profitability compared to prior quarters.

• Excluding a $546,000 tax reserve release, Q4 net income was $8.3 million ($0.20 per share).

• Average client deposits rose by $62.9 million (6.1% annualized) sequentially, and the loan-to-deposit ratio improved to 106.63%.

• Efficiency ratio improved to 71.8% from 75.6% in Q3 2024, indicating better cost management.

• HarborOne Mortgage returned to profitability with $1.1 million net income after a prior quarter loss.

Financial highlights

• Total assets stood at $5.8 billion and total loans at $4.9 billion as of December 31, 2024.

• Net interest margin was 2.36% in Q4, flat sequentially; net interest and dividend income was $31.8 million.

• Noninterest income rose 29.5% sequentially to $13.7 million, driven by mortgage banking and MSR valuation gains.

• Noninterest expense increased 1.9% to $32.9 million, mainly from higher compensation, professional fees, and deposit insurance.

• Share repurchases totaled 394,457 shares in Q4 at $12.64 average price; 1.9 million shares repurchased in 2024.

Outlook and guidance

• Management expects to carry positive momentum into 2025, citing strong deposit growth, reduced interest rates, and stable asset quality.

• Emphasis on organic growth, customer primacy, and maintaining a diverse, low-cost funding base.

• Ongoing rationalization and modernization of banking centers to support efficiency.

• Continued focus on prudent cost management and process enhancement.