Net interest income showed a 5.9% growth rate in 2025Q2, yet the net interest margin remains constrained at 0.6% due to elevated funding costs.
| Net Interest Income | 128.4M | 125.65M | 127.27M | 148.99M | 131.37M | 120.07M | 109.06M | 88.93M | 74.35M | 60.99M | 52.23M | 45.2M |
| NII Growth % | 18.65% | -1.27% | -14.58% | 13.41% | 9.41% | 10.09% | 22.64% | 19.61% | 21.89% | 16.79% | 15.54% | - |
| Net Interest Margin % | 2.29% | 2.18% | 2.25% | 2.78% | 2.89% | 2.68% | 2.69% | 2.43% | 2.77% | 2.49% | 2.41% | 2.21% |
| Interest Income | 266.59M | 271.41M | 244.29M | 171.93M | 143.9M | 148.56M | 154.78M | 115.71M | 90.28M | 74.76M | 66.8M | 61.08M |
| Interest Expense | 138.19M | 145.76M | 117.02M | 22.94M | 12.53M | 28.49M | 45.72M | 26.78M | 15.94M | 13.76M | 14.57M | 15.88M |
| Loan Loss Provision | 9.95M | 8.28M | 5.68M | 5.66M | -7.26M | 34.81M | 4.75M | 3.83M | 2.42M | 4.17M | 1.26M | 2.59M |
| Non-Interest Income | 41.59M | 42.29M | 39.08M | 53.55M | 93.16M | 127M | 53.19M | 42.5M | 46.3M | 55.7M | 30.06M | 13.35M |
| Non-Interest Income % | 13.5% | 13.48% | 13.79% | 23.75% | 39.3% | 46.09% | 25.57% | 26.86% | 33.9% | 42.7% | 31.03% | 17.94% |
| Total Revenue | 308.19M | 313.7M | 283.37M | 225.48M | 237.06M | 275.55M | 207.97M | 158.2M | 136.59M | 130.46M | 96.86M | 74.43M |
| Revenue Growth % | 8.65% | 10.7% | 25.68% | -4.89% | -13.97% | 32.5% | 31.46% | 15.83% | 4.7% | 34.69% | 30.13% | - |
| Non-Interest Expense | 127.29M | 125.41M | 135.55M | 135.14M | 151.34M | 154.24M | 134.83M | 113.39M | 101.18M | 103.3M | 72.7M | 52.04M |
| Efficiency Ratio | 41.3% | 39.98% | 47.83% | 59.94% | 63.84% | 55.97% | 64.83% | 71.67% | 74.08% | 79.18% | 75.06% | 69.92% |
| Operating Income | 32.76M | 34.26M | 25.13M | 61.73M | 80.45M | 58.01M | 22.68M | 14.21M | 17.05M | 9.23M | 8.33M | 3.92M |
| Operating Margin % | 10.63% | 10.92% | 8.87% | 27.38% | 33.94% | 21.05% | 10.9% | 8.98% | 12.48% | 7.07% | 8.6% | 5.27% |
| Operating Income Growth % | - | 36.35% | -59.3% | -23.27% | 38.69% | 155.82% | 59.61% | -16.68% | 84.79% | 10.82% | 112.42% | - |
| Pretax Income | 32.76M | 34.26M | 25.13M | 61.73M | 80.45M | 58.01M | 22.68M | 14.21M | 17.05M | 9.23M | 8.33M | 3.92M |
| Pretax Margin % | 10.63% | 10.92% | 8.87% | 27.38% | 33.94% | 21.05% | 10.9% | 8.98% | 12.48% | 7.07% | 8.6% | 5.27% |
| Income Tax | 6.39M | 6.85M | 9.05M | 16.14M | 21.93M | 13.22M | 4.41M | 2.81M | 6.67M | 3.3M | 2.56M | 1.35M |
| Effective Tax Rate % | 19.5% | 20% | 36.01% | 26.15% | 27.26% | 22.78% | 19.44% | 19.8% | 39.13% | 35.73% | 30.73% | 34.44% |
| Net Income | 26.37M | 27.41M | 16.08M | 45.59M | 58.52M | 44.79M | 18.27M | 11.39M | 10.38M | 5.93M | 5.77M | 2.57M |
| Net Margin % | 8.56% | 8.74% | 5.67% | 20.22% | 24.68% | 16.26% | 8.78% | 7.2% | 7.6% | 4.55% | 5.96% | 3.45% |
| Net Income Growth % | 65.87% | 70.47% | -64.73% | -22.09% | 30.64% | 145.19% | 60.33% | 9.78% | 75% | 2.83% | 124.44% | - |
| Net Income (Continuing) | 26.37M | 27.41M | 16.08M | 45.59M | 58.52M | 44.79M | 18.27M | 11.39M | 10.38M | 5.93M | 5.77M | 2.57M |
| EPS (Diluted) | 0.65 | 0.66 | 0.37 | 0.97 | 1.14 | 0.82 | 0.33 | 0.20 | 0.18 | 0.10 | 0.10 | 0.04 |
| EPS Growth % | 72.34% | 78.38% | -61.86% | -14.91% | 39.02% | 148.48% | 65% | 11.11% | 80% | 0% | 124.22% | - |
| EPS (Basic) | - | 0.66 | 0.37 | 0.98 | 1.15 | 0.82 | 0.33 | 0.20 | 0.18 | 0.10 | 0.10 | 0.04 |
| Diluted Shares Outstanding | 40.36M | 41.47M | 43.42M | 47.12M | 51.52M | 54.32M | 55.73M | 56.69M | 56.07M | 57.67M | 57.67M | 57.67M |
Mortgage segment earnings volatility
According to the latest quarterly data, HarborOne's net interest income reached $33.2 million in 2025Q2, reflecting a 5.9% growth rate that suggests a stabilization in funding costs following the significant contraction observed throughout the 2023 fiscal year when NII fell as low as $29.7 million.
The recent uptick in NII appears to indicate that the bank is successfully navigating the interest rate cycle by repricing its commercial loan portfolio. However, investors should monitor whether this growth is sustainable or merely a temporary reprieve from the intense deposit competition prevalent in the Southeastern Massachusetts market.
As reported in financial statements, the net interest margin has remained stagnant at 0.6% for the past several quarters, highlighting a structural challenge in maintaining spread profitability amidst a high-rate environment that continues to pressure the bank's cost of interest-bearing liabilities relative to asset yields.
The lack of expansion in NIM suggests that HarborOne is struggling to pass on higher funding costs to its borrowers without sacrificing loan volume. This persistent compression warrants further investigation into the bank's deposit beta and the potential for a shift in the funding mix toward higher-cost time deposits.
Based on the reported figures, HarborOne achieved an efficiency ratio of 42.9% in 2025Q2, demonstrating a notable improvement from the 58.8% peak seen in 2023Q4 and suggesting that management is effectively controlling non-interest expenses despite the inherent volatility in the mortgage banking segment.
The current efficiency ratio appears to be within a manageable range for a regional bank of this size, though it remains sensitive to fluctuations in fee-based revenue. Maintaining this level of operating leverage will be critical if the mortgage business continues to experience volume contractions.
As indicated by the quarterly income statements, provision expense fluctuated significantly from a $168,000 recovery in 2024Q1 to a $5.9 million charge in 2024Q3, underscoring the inherent risk in the bank's specialized indirect auto lease portfolio and its sensitivity to consumer credit cycles.
The lumpy nature of these provisions suggests that the bank's credit quality is not immune to broader economic pressures in its core operating regions. Investors should monitor whether future provisioning levels remain elevated, as this could continue to act as a drag on net income and overall profitability.
Data from recent filings shows that non-interest income, which includes volatile mortgage gain-on-sale revenue, accounted for 14.5% of total revenue in 2025Q2, a figure that remains highly susceptible to interest rate-driven shifts in residential mortgage origination volumes across the Boston-Providence corridor.
The reliance on transactional mortgage income introduces a layer of earnings instability that may not be fully captured by core banking metrics. This dependency suggests that the bank's top-line performance will likely remain tethered to the cyclicality of the housing market rather than purely organic loan growth.
Quick answers to the most common questions about buying HONE stock.
HarborOne Bancorp, Inc. (HONE) is profitable, generating $27.4M in net income for the fiscal year ending 2024 with a net profit margin of 8.7%.
HarborOne Bancorp, Inc. (HONE) reported an operating income of $34.3M, resulting in an operating profit margin of 10.9%. This margin reflects the operational efficiency of the business before interest and taxes.
HarborOne Bancorp, Inc. (HONE) generated $159.7M in gross profit for the year, representing a gross profit margin of 50.9%. This demonstrates the company's core pricing power and production efficiency.