- HarborOne Bancorp, Inc. (HONE, Financial) reported a net income of $5.5 million in Q1 2025, a decrease of 38.1% from Q4 2024.
- Deposits, excluding brokered deposits, increased by $79.6 million or 1.9% over the previous quarter.
- Noninterest income saw a significant drop of 27.7% due to lower mortgage banking income.
HarborOne Bancorp, Inc. (HONE), the holding company for HarborOne Bank, announced its first-quarter financial results for 2025, reporting a net income of $5.5 million, or $0.14 per diluted share, down $3.4 million from the fourth quarter of 2024. This decrease was primarily attributed to a $2.9 million reduction in mortgage banking income. Despite this, HarborOne saw an improvement in its net interest margin, which rose by 3 basis points to 2.39%.
Deposits, excluding brokered deposits, experienced a growth of $79.6 million, marking a 1.9% increase compared to the last quarter. The company also noted a positive shift in its loans-to-deposits ratio, which improved by 225 basis points, aligning the ratio from 106.63% to 104.38% over the quarter. In addition, the credit loss provision decreased by $542,000, amounting to $1.4 million by the end of the first quarter.
The company maintained noninterest expenses at $32.9 million, with key variances including a $150,000 increase in occupancy and equipment expenses due to seasonal factors. Despite a challenging quarter in the mortgage sector, HarborOne Mortgage achieved an 11.8% increase in year-over-year residential mortgage loan closings.
As the company continues to strategize for future quarters, HarborOne Bancorp remains focused on addressing the dynamics impacting the mortgage banking income while leveraging its strengths in deposit growth and cost management. The tangible-common-equity-to-tangible-assets ratio increased to 9.15% from 9.05% in the prior quarter, indicating a stable capital position for the bank.
