HarborOne Bancorp Inc (HONE) Announces Q3 2023 Earnings with Net Income of $8.4 Million
HarborOne Bancorp Inc (NASDAQ:HONE) reports Q3 2023 net income of $8.4 million, up from $7.5 million in Q2 2023.
The company's net interest and dividend income was $31.1 million for Q3 2023, compared to $32.1 million for Q2 2023.
HarborOne Bancorp Inc (NASDAQ:HONE) saw a decrease in noninterest income from $12.7 million in Q2 2023 to $11.6 million in Q3 2023.
The company's total assets remained flat at $5.66 billion as of September 30, 2023.
HarborOne Bancorp Inc (NASDAQ:HONE), the holding company for HarborOne Bank, announced its third-quarter earnings for 2023 on October 24, 2023. The company reported a net income of $8.4 million, or $0.20 per diluted share, for Q3 2023, a 12% increase from the preceding quarter's net income of $7.5 million, or $0.17 per diluted share. However, this represents a decrease compared to the same period last year, where the net income was $13.8 million, or $0.30 per diluted share.
Financial Highlights and Performance
Joseph F. Casey, President and CEO, highlighted the company's strong deposit growth amidst a challenging environment. He stated,
As many of our competitors struggled with deposit contraction, we grew the average balance of customer deposits at a 14.7% annualized pace in Q3. This strong deposit growth allowed the pay-down of over $167 million in wholesale funds during the quarter."
The company also commenced a sixth stock buyback plan in Q3, purchasing $6.4 million of HarborOne shares at an average cost of $9.81 per share.
Income Statement Summary
HarborOne Bancorp Inc (NASDAQ:HONE)'s net interest and dividend income for Q3 2023 was $31.1 million, compared to $32.1 million for Q2 2023, and $39.3 million for Q3 2022. The decrease in net interest and dividend income primarily reflects a higher cost of funding, partially offset by increased loan balances and yields.
Noninterest income decreased by $1.1 million, or 8.4%, to $11.6 million for Q3 2023, from $12.7 million for Q2 2023. This decrease was primarily due to persistent low inventory of for-sale residential real estate and rising mortgage interest rates impacting the results of HarborOne Mortgage.
Balance Sheet Summary
The company's total assets remained flat at $5.66 billion as of September 30, 2023. Loans increased by $24.7 million, or 0.5%, to $4.72 billion at September 30, 2023, from $4.70 billion at June 30, 2023. Total deposits were $4.41 billion at September 30, 2023, up from $4.29 billion at June 30, 2023.
Looking Ahead
Despite the challenging market conditions, HarborOne Bancorp Inc (NASDAQ:HONE) continues to focus on prudent commercial lending opportunities and maintaining strong capital positions. The company's management is closely monitoring the loan portfolio for signs of deterioration, especially in sectors that may be particularly susceptible to increased credit risk due to current economic conditions.
This article first appeared on GuruFocus.
