Executive Summary

Q1 2025 EPS was $0.14, down from $0.21 in Q4 2024 on lower mortgage banking income and MSR valuation losses; net interest margin expanded 3 bps to 2.39% as core deposit costs fell 15 bps excluding brokered deposits .
EPS missed consensus by $0.03 (consensus $0.17*, 4 ests), while “Revenue” (S&P definition) beat ($39.98m* actual vs $32.58m* consensus, 2 ests); company “Total revenue” was $41.36m .
Credit costs were elevated: a previously identified CRE loan was charged off ($8.3m specific reserve), driving annualized NCOs to 0.72% and lowering the ACL-to-loans to 1.02% .
Strategic catalyst: HarborOne entered a definitive agreement to merge into Eastern Bankshares (EBC) for 0.765 EBC shares or $12.00 cash per HONE share (75–85% stock mix), with expected close in Q4 2025 .
Capital actions remained supportive: quarterly dividend raised 12.5% to $0.09 per share and 513,855 shares repurchased during Q1 .

What Went Well and What Went Wrong

What Went Well
- Net interest margin expansion to 2.39% (+3 bps QoQ) on falling deposit costs (ex-brokered) and lower borrowing costs; CEO: “solid start to the year… lower loan delinquencies, and a reduction of 15 basis points in the cost of deposits, excluding brokered deposits” .
- Core funding improvement: total deposits +$68.0m QoQ with brokered deposits -$11.6m; loans/deposits improved to 104.38% from 106.63% .
- C&I loan growth of $33m while CRE balances declined, consistent with de-risking and mix optimization .
What Went Wrong
- Mortgage banking headwinds: noninterest income fell $3.8m QoQ to $9.9m as gain on sale declined and MSR valuation swung to a $1.1m loss (partially hedged by a $0.56m gain) amid higher rates and limited for-sale inventory .
- Elevated credit costs: net charge-offs annualized to 0.72% driven by an $8.3m charge-off on a previously reserved CRE loan; criticized/classified commercial loans rose to $187.1m .
- Fee pressure: deposit account fees fell $871k QoQ on seasonal debit volumes and absence of the prior quarter’s VISA incentive catch-up .

Headline P&L vs prior periods (company-reported):

Metric	Q1 2024	Q4 2024	Q1 2025
EPS (Diluted, $)	0.17	0.21	0.14
Net Income ($mm)	7.30	8.89	5.50
Total Revenue ($mm)	41.32	45.52	41.36
Net Interest & Dividend Income ($mm)	30.58	31.83	31.47
Noninterest Income ($mm)	10.74	13.69	9.89

Margins and profitability:

Metric	Q1 2024	Q4 2024	Q1 2025
NIM (FTE)	2.25%	2.36%	2.39%
Cost of Total Deposits	2.49%	2.62%	2.48%
Efficiency Ratio	76.38%	71.81%	78.97%
ROAA	0.50%	0.62%	0.39%

Consensus vs actual (S&P Global vs company where noted):

Metric (Q1 2025)	Consensus	Actual	# of Estimates	Beat/Miss
EPS (Diluted, $)	0.17*	0.14	4*	— MISS
Revenue ($mm, S&P definition)	32.58*	39.98*	2*	— BEAT
Total Revenue ($mm, company)	—	41.36	—	—

Segment results and mortgage KPIs:

Metric	Q1 2024	Q4 2024	Q1 2025
Bank Segment Net Income ($mm)	7.16	7.72	6.23
Mortgage Segment Net Income ($mm)	0.22	1.13	(0.49)
Mortgage Closed Loan Volume ($mm)	102.10	179.08	114.14
Mortgage Gain-on-Sale Margin	1.97%	2.21%	2.38%

Balance sheet and credit KPIs:

KPI	Q1 2024	Q4 2024	Q1 2025
Total Deposits ($mm)	4,394.02	4,550.75	4,618.72
Brokered Deposits ($mm)	387.93	401.48	389.86
Loans/Deposits	108.71%	106.63%	104.38%
CET1 Ratio	11.97%	11.79%	11.86%
NPA / Assets	0.21%	0.51%	0.54%
Net Charge-offs (annualized)	0.01%	0.00%	0.72%
ACL to Loans	1.01%	1.16%	1.02%

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance (Revenue, Margins, OpEx, Tax)	2025	None provided	None provided	Maintained (no guidance issued)
Dividend per Share (Quarterly)	Q1 2025	$0.08 (prior run-rate)	$0.09	Raised 12.5%

Note: Company did not provide formal quantitative forward guidance in the Q1 2025 materials -.

(No HarborOne Q1 2025 earnings call transcript was available.)

Topic	Previous Mentions (Q3’24, Q4’24)	Current Period (Q1’25)	Trend
NIM & Deposit Costs	NIM improved to 2.33%; deposit mix pressured; brokered decreased; BTFP repayment lowered borrowing costs	NIM 2.39% (+3 bps); deposit cost (ex-brokered) down 15 bps; borrowing costs -6 bps	Gradual NIM expansion on lower funding costs
Mortgage/MSR	MSR valuation -$2.6m; hedging +$0.845m; robust closings	MSR +$1.9m; hedging -$1.3m; closings $179m	MSR -$1.1m; hedge +$0.56m; closings $114m; margin 2.38%
Credit/CRE	CRE office credit drove $5.9m provision; NPA rose	Specific reserve maintained; NPA 0.51%	Charged-off $8.3m specific CRE; NCOs 0.72%; criticized/classified $187.1m
Funding/Deposits	Client deposits +$77.9m; brokered -$11.6m	Brokered +$27.8m to fund BTFP payoff	Deposits +$68.0m; brokered -$11.6m; ~74% insured
Tech/Cloud	Cloud costs rising	Cloud costs up	Higher cloud computing expenses as stack evolves
Strategic	—	—	Definitive merger with Eastern Bankshares announced

“The first quarter represents a solid start to the year… strong commercial and industrial loan growth of $33 million… and a reduction of 15 basis points in the cost of deposits, excluding brokered deposits.” — Joseph F. Casey, President & CEO .
“The combination is a natural strategic fit… financially compelling transaction with 16% earnings accretion and a tangible book value earnback of 2.8 years.” — Denis Sheahan, CEO of Eastern Bank; “[This] brings further scale, resources, and innovation…” — Joseph F. Casey .

No HarborOne Q1 2025 earnings call transcript was available in our document set; no Q&A themes to report.

EPS: $0.14 actual vs $0.17 consensus (4 estimates) — MISS by $0.03*.
Revenue (S&P definition): $39.98m actual vs $32.58m consensus (2 estimates) — BEAT*.
Company “Total revenue” was $41.36m (different definition; not used by S&P Global for consensus comparisons) .
Estimate adjustments likely to reflect: softer mortgage banking/MSR in Q1 and elevated credit costs, partly offset by improving NIM on falling funding costs .

Core margin trajectory is improving as deposit and borrowing costs decline; sustaining NIM expansion is a medium-term earnings lever .
Mortgage segment volatility (closings, MSR valuation) remains a swing factor; hedging helps but won’t fully neutralize rate/volume shocks .
Credit clean-up of the previously reserved CRE exposure is largely through the P&L via an $8.3m charge-off; watch criticized/classified credits (now $187.1m) and NPA trends .
Funding mix improved with lower brokered balances and a higher insured deposit proportion (~74%); loans/deposits moved to 104.38%, reducing wholesale reliance .
Capital return remains active (12.5% dividend raise; buybacks), but forward actions will be shaped by the Eastern merger process .
M&A is the dominant catalyst: terms (0.765 EBC shares or $12 cash, 75–85% stock mix) and closing risk/timing (target Q4 2025) will anchor HONE trading relative to EBC .
Near term, stock performance likely driven more by deal spread dynamics and regulatory milestones than by standalone quarterly variability.

Earnings press release and prior quarters: ; ;
Dividend increase press release:
Merger press release:

Estimates data note: *Values retrieved from S&P Global.