Executive Summary

Q4 2024 delivered the strongest quarter of the year: total revenue rose to $45.5M from $42.5M in Q3 and $38.6M in Q4’23, and diluted EPS improved to $0.21 (core $0.20) from $0.10 in Q3; NIM held at 2.36% while deposit costs ticked down to 2.62% .
Profit drivers: lower provision vs Q3 ($1.9M vs $5.9M), a positive MSR valuation swing (+$1.9M vs -$2.8M in Q3) despite hedge losses, and reduced borrowing costs following full payoff of $175M BTFP during the quarter .
Mortgage segment turned profitable ($1.1M vs $(1.1)M in Q3) on higher gain-on-sale and MSR tailwinds; bank segment earnings also improved (Bank: $7.7M Q4 vs $4.9M Q3) .
Asset quality mixed: net charge-offs were de minimis ($58K), but criticized/classified commercial loans increased to $178.6M amid CRE pressure; NPL ratio rose to 0.61% (from 0.58% in Q3) and ACL coverage increased to 1.16% of loans .
Capital returns continue: 394,457 shares repurchased at $12.64 average; quarterly dividend maintained at $0.08/share—steady income and buybacks remain near-term stock catalysts alongside further deposit cost normalization and mortgage profitability traction .

What Went Well and What Went Wrong

What Went Well

Mortgage segment profitability returned: net income of $1.1M vs $(1.1)M in Q3, supported by $4.0M gain on loan sales and a $1.9M MSR valuation increase (partially offset by a $1.3M hedge loss) .
Funding/costs improved: BTFP borrowing ($175M) repaid in full; average borrowings fell by ~$96M and borrowing costs declined 25 bps QoQ; cost of deposits (ex-brokered) decreased 6 bps and NIM held at 2.36% .
Deposit growth and capital returns: average core deposits rose $62.9M (linked-quarter), and the company repurchased 394,457 shares in the quarter .

Management quote: “The fourth quarter was our strongest of the year, with continued growth in deposits at reduced interest rates, $1.1 million of net income from our mortgage segment, and insignificant net charge offs.” — Joseph F. Casey, President & CEO .

What Went Wrong

Credit trend signals: criticized/classified commercial loans increased to $178.6M from $134.3M in Q3 on continued CRE value pressure; NPL ratio rose to 0.61% and NPAs to $29.5M .
Loan balances edged down: total loans decreased by $27.0M (0.6%) QoQ to $4.85B, reflecting softer demand/portfolio optimization, while deposit mix remained pressured (shift to CDs; brokered deposits increased) .
Mortgage demand softer exiting Q4: locked pipeline declined by $30.7M QoQ due to higher mortgage rates, seasonal slowdown, and limited for-sale inventory, tempering forward momentum .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Total Revenue ($M)	$38.6	$42.5	$45.5
Net Interest & Dividend Income ($M)	$29.7	$31.9	$31.8
Noninterest Income ($M)	$8.9	$10.6	$13.7
Provision for Credit Losses ($M)	$0.6	$5.9	$1.9
Net Income ($M)	$(7.1)	$3.9	$8.9
Diluted EPS ($)	$(0.17)	$0.10	$0.21
NIM (FTE, %)	2.23%	2.36%	2.36%
Efficiency Ratio (%)	111.47%	75.55%	71.81%

Segment performance (key P&L lines)

Segment	Metric	Q4 2023	Q3 2024	Q4 2024
Bank	NII ($M)	$30.6	$31.8	$31.7
Bank	Total Noninterest Income ($M)	$7.7	$6.7	$7.4
Bank	Noninterest Expense ($M)	$28.6	$26.8	$27.4
Bank	Net Income ($M)	$6.6	$4.9	$7.7
Mortgage	NII ($M)	$0.16	$0.11	$0.14
Mortgage	Total Noninterest Income ($M)	$1.05	$3.82	$6.16
Mortgage	Noninterest Expense ($M)	$14.7	$5.6	$5.5
Mortgage	Net Income ($M)	$(12.9)	$(1.1)	$1.1
Mortgage	Closed Loan Volume ($M)	$124.2	$209.5	$179.1
Mortgage	Gain-on-Sale Margin (%)	1.75%	1.79%	2.21%

Key KPIs

KPI	Q4 2023	Q3 2024	Q4 2024
Total Loans ($B)	$4.750	$4.880	$4.852
Total Deposits ($B)	$4.387	$4.536	$4.551
Loans / Deposits (%)	108.27%	107.57%	106.63%
Cost of Total Deposits (%)	2.47%	2.68%	2.62%
Nonperforming Assets ($M)	$17.6	$28.4	$29.5
NPLs / Total Loans (%)	0.37%	0.58%	0.61%
ACL on Loans ($M)	$48.0	$54.0	$56.1
ACL / Total Loans (%)	1.01%	1.11%	1.16%
Net Charge-offs ($K)	$1,311	$182	$58
TCE / TA (%)	9.33%	9.17%	9.05%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share	Q4 2024 (Payable Jan 14, 2025)	$0.08 (declared Sep 30, 2024)	$0.08 (declared Dec 19, 2024)	Maintained
Share Repurchase Authorization	Program announced in Q2 2024 (12-month horizon)	New program to repurchase ~5% of outstanding shares over next year	Active; 394,457 shares repurchased in Q4 at $12.64 avg	Continuing
Revenue/Margins/OpEx/Tax		No formal guidance provided	No formal guidance provided	N/A

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Net Interest Margin (NIM)	Improved to 2.31% in Q2 and 2.33% in Q3 on funding optimization and higher asset yields .	Held at 2.36% amid lower borrowing costs and slightly lower core deposit costs .	Stable to modestly improving.
Deposit Costs & Mix	Cost of total deposits rose to 2.53% in Q2 and 2.68% in Q3; mix shifted toward CDs; brokered deposits moderated in Q3 .	Cost declined to 2.62%; average core deposits +$62.9M; brokered deposits +$27.8M tied to BTFP payoff .	Cost easing; mix competition persists.
Borrowings & Liquidity	Wholesale funding paid down in Q2/Q3 to reduce costs .	$175M BTFP fully repaid; average borrowings -$95.9M; borrowing cost -25 bps QoQ .	Positive funding trajectory.
Credit/CRE Exposure	Q3 provision $5.9M primarily from suburban office; classified loans rose, office credits watched .	Provision $1.9M (specific reserve on prior CRE credit); criticized/classified commercial loans up to $178.6M; NPLs/NPAs slightly higher .	Monitoring risk; mixed but controlled losses.
Mortgage Banking & MSR	Q2 seasonal rebound; Q3 MSR valuation -$2.6M offset by $0.8M hedge gain .	Mortgage net income $1.1M; MSR +$1.9M but $1.3M hedge loss; locked pipeline down on rates/seasonality/inventory .	Improving profitability; volume headwinds.
Capital Returns	New buyback program in Q2; Q3 repurchases of 347,670 shares .	Repurchased 394,457 shares; dividend maintained at $0.08 .	Ongoing returns.

Management Commentary

Strategy and momentum: “The fourth quarter was our strongest of the year, with continued growth in deposits at reduced interest rates, $1.1 million of net income from our mortgage segment, and insignificant net charge offs. We are looking forward to carrying the positive momentum into 2025.” — Joseph F. Casey, President & CEO .
Margin/funding: NIM remained at 2.36% as loan yields dipped 10 bps (lower floating-rate resets and fewer prepayment fees), offset by 6 bps lower core deposit costs and 25 bps lower borrowing costs post-BTFP payoff .
Mortgage/MSR dynamics: MSR valuation increased $1.9M vs a $2.8M decline in Q3; gain-on-sale improved to $4.0M on $179.1M closings, though hedges produced a $1.3M economic loss .

Q&A Highlights

We could not locate a Q4 2024 earnings call transcript; no Q&A details were available in our document set. Our analysis relies on the earnings press release and related company updates -.

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 was not retrievable at this time due to a request limit; therefore, we cannot quantitatively assess beats/misses vs consensus for EPS or revenue in this report. Values were unavailable from S&P Global at time of request.

Key Takeaways for Investors

NII stabilization with improving funding costs: NIM steady at 2.36% alongside a lower cost of deposits and reduced borrowing costs post-BTFP payoff; continued easing in deposit costs is a near-term earnings lever .
Mortgage segment turnaround: sustained profitability depends on gain-on-sale margins and MSR volatility; pipeline softness (rates/seasonality/inventory) is a watch item, but structural hedging partially mitigates MSR shocks .
Credit watchlist growing, losses limited: criticized/classified commercial loans rose amid CRE pressures, yet net charge-offs were minimal ($58K); reserve levels increased to 1.16% of loans .
Balanced funding and liquidity: continued core deposit growth at lower rates and ample borrowing capacity ($1.29B at year-end) support flexibility if rates or credit conditions shift .
Capital deployment supportive: ongoing buybacks and a maintained $0.08 quarterly dividend provide shareholder yield while book and tangible book held relatively steady despite AFS marks .
Near-term trading lens: stock sensitivity to deposit cost trajectory, CRE headlines, and mortgage/MSR performance remains high; incremental evidence of deposit cost decline and benign losses could drive multiple expansion.
Medium-term thesis: gradual margin rebuild as funding reprices lower, with disciplined credit management and diversified fee income from mortgage banking, positions HONE for improving returns as rate pressures abate .

Citations: All quantitative and qualitative statements are sourced from HarborOne’s Q4 2024 earnings press release and related company disclosures -, Q3 2024 earnings release -, Q2 2024 earnings release -, and dividend announcements for Q3 and Q4 2024 - -.

HarborOne Bancorp, Inc. (HONE)·Q4 2024 Earnings Summary