HarborOne Bancorp Reports $8.1 Million Net Income for Q2 2025, Merger with Eastern Bank Pending

HarborOne Bancorp, Inc. reported a net income of $8.1 million for the three months ended June 30, 2025, reflecting an increase from $7.3 million in the same period last year. For the first half of 2025, net income totaled $13.6 million, down from $14.6 million in the prior year. The company’s total assets decreased by 2.5% to $5.61 billion, primarily due to a $117.1 million decline in net loans and a $31.3 million drop in short-term investments. The decrease in net loans was attributed to subdued lending activity, particularly in commercial real estate and construction loans, while commercial and industrial loans saw a modest increase.

In terms of revenue, HarborOne's interest and dividend income for the second quarter was $65.6 million, down from $67.9 million a year earlier. The decline was driven by a decrease in interest on loans, which fell to $60.8 million from $61.5 million, alongside a drop in other interest income. The company’s net interest margin improved to 2.52% from 2.31% year-over-year, aided by a decrease in interest expense, which fell to $32.4 million from $36.6 million. The provision for credit losses increased to $739,000 for the quarter, reflecting specific reserve allocations for commercial loans.

Operationally, HarborOne continues to focus on its merger with Eastern Bank, announced on April 24, 2025. The merger is expected to close in the fourth quarter of 2025, pending regulatory approvals. The company has also been active in managing its capital, with total stockholders' equity rising to $580.1 million, up from $575.0 million at the end of 2024. Share repurchases during the first half of 2025 amounted to 831,355 shares, totaling $9 million, as part of a broader strategy to enhance shareholder value.

The company’s loan portfolio showed a decrease in total loans to $4.73 billion, with notable declines in commercial real estate and consumer loans. The allowance for credit losses on loans was $48.0 million, or 1.01% of total loans, down from $56.1 million, or 1.16%, at the end of 2024. Nonperforming assets increased to $32.7 million, representing 0.58% of total assets, compared to 0.51% at the end of the previous year. The company continues to monitor its credit quality closely, particularly in the commercial real estate sector, amid concerns about market conditions.

Looking ahead, HarborOne anticipates that the merger with Eastern Bank will provide significant growth opportunities and enhance its competitive position in the market. However, the company acknowledges potential risks associated with the merger, including integration challenges and market fluctuations. Management remains focused on maintaining strong liquidity and capital levels, with ample borrowing capacity available to support future growth initiatives.