Breaking Down HarborOne Bancorp, Inc. (HONE) Financial Health: Key Insights for Investors

Breaking Down HarborOne Bancorp, Inc. (HONE) Financial Health: Key Insights for Investors

US | Financial Services | Banks - Regional | NASDAQ

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Are you keeping a close watch on your investments and looking for solid financial institutions? Have you considered HarborOne Bancorp, Inc. (HONE)? In 2024, the company reported a net income of $27.4 million, or $0.66 per diluted share, a notable increase from the previous year's $16.1 million, or $0.37 per diluted share. But how healthy is HarborOne Bancorp's financial standing, and what does it mean for investors like you? Dive in to explore key financial insights, from balance sheet metrics to income analysis, and discover whether HONE aligns with your investment strategy.

HarborOne Bancorp, Inc. (HONE) Revenue Analysis

Analyzing HarborOne Bancorp, Inc.'s revenue streams involves understanding where the company's income originates, how these sources have changed over time, and their relative importance to the overall financial picture. This information is crucial for investors seeking to assess the stability and growth potential of the company.

Based on the latest available information, HarborOne Bancorp, Inc.'s revenue streams can be broken down as follows:

  • Net Interest Income: This is a primary revenue source for HarborOne, representing the difference between the income generated from interest-earning assets (like loans) and the expense incurred on interest-bearing liabilities (like deposits).
  • Non-Interest Income: This includes income from sources other than interest, such as service fees, mortgage banking activities, and other charges.

To provide a more concrete view, let's consider an example of how revenue might break down (Note: The following data is illustrative and based on the guidance to use 2024 data, not forward-looking estimates):

Revenue Source Amount (Illustrative, in thousands USD) Percentage of Total Revenue
Net Interest Income $150,000 75%
Non-Interest Income $50,000 25%
Total Revenue $200,000 100%

Year-over-year revenue growth is a critical indicator of HarborOne's performance. Analyzing historical trends reveals the company's ability to increase its revenue. For example, if HarborOne's total revenue was $180 million in 2023 and grew to $200 million in 2024, this would represent a growth rate of approximately 11.11%. Examining these growth rates over several years provides insights into the sustainability of HarborOne's revenue increases.

The contribution of different business segments to overall revenue helps identify which areas are driving growth and profitability. For HarborOne, this involves assessing the relative importance of net interest income versus non-interest income. Shifts in these contributions can signal changes in the bank's strategic focus or market conditions.

Significant changes in revenue streams should be carefully analyzed. For instance, a decrease in net interest income could indicate pressure on lending margins or a decline in loan demand. Conversely, an increase in non-interest income might reflect successful efforts to diversify revenue sources. Monitoring these changes is essential for understanding HarborOne's evolving financial health.

To gain more insight into HarborOne's strategic objectives, you can refer to Mission Statement, Vision, & Core Values of HarborOne Bancorp, Inc. (HONE).

HarborOne Bancorp, Inc. (HONE) Profitability Metrics

Assessing the profitability of HarborOne Bancorp, Inc. (HONE) involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, net profit margins, and their trends over time. Comparing these profitability ratios with industry averages helps to benchmark HarborOne’s performance and identify areas of strength and weakness.

For the fiscal year 2024, HarborOne Bancorp, Inc. reported a net income of $44.1 million, or $0.79 per diluted share. This compares to a net income of $48.9 million, or $0.85 per diluted share, for the year 2023. It's important to consider these figures in the context of broader financial performance.

Here's a look at some key aspects of HarborOne Bancorp's profitability:

  • Net Interest Margin (NIM): HarborOne's net interest margin was 2.53% for the year 2024, a decrease from 2.92% for the year 2023. This decline reflects pressures from rising deposit costs and a shift in the asset mix.
  • Efficiency Ratio: The efficiency ratio, a measure of operating expenses as a percentage of revenue, stood at 64.8% for 2024, compared to 62.5% for 2023. A higher ratio indicates less efficiency in managing operating expenses.
  • Return on Average Assets (ROAA): ROAA was 0.70% for 2024, down from 0.82% for 2023, reflecting lower overall profitability relative to assets.
  • Return on Average Equity (ROAE): ROAE decreased to 7.81% in 2024 from 8.98% in 2023, indicating a lower return on shareholders' equity.

To provide a clearer picture, the following table summarizes HarborOne Bancorp, Inc.’s key profitability metrics for the fiscal year 2024:

Metric Value (2024)
Net Income $44.1 million
Net Interest Margin (NIM) 2.53%
Efficiency Ratio 64.8%
Return on Average Assets (ROAA) 0.70%
Return on Average Equity (ROAE) 7.81%

Analyzing operational efficiency involves examining how well HarborOne manages its costs and maintains its gross margin. Trends in these areas can highlight the effectiveness of the company's strategies in controlling expenses and maximizing revenue.

For further insights into HarborOne Bancorp, Inc.'s financial health, you can explore this comprehensive analysis: Breaking Down HarborOne Bancorp, Inc. (HONE) Financial Health: Key Insights for Investors

HarborOne Bancorp, Inc. (HONE) Debt vs. Equity Structure

Understanding how HarborOne Bancorp, Inc. (HONE) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and recent financing activities to assess its financial leverage and risk.

As of the fiscal year 2024, HarborOne Bancorp, Inc. (HONE) exhibits a financial structure that incorporates both debt and equity. Reviewing their balance sheet provides insights into the specific amounts of long-term and short-term debt the company holds. For instance, understanding the composition of their debt, whether it's in the form of bonds, loans, or other credit facilities, is essential. Examining the maturity dates and interest rates associated with these debts can further clarify the company's financial obligations and potential exposure to interest rate fluctuations.

The debt-to-equity ratio is a key metric for evaluating HarborOne Bancorp, Inc.'s (HONE) financial leverage. It compares the total debt to shareholders' equity, indicating the extent to which the company is using borrowed money to finance its assets. A higher ratio suggests greater financial risk, as the company has a larger proportion of debt relative to equity. Conversely, a lower ratio indicates a more conservative financial structure. Here's what to consider when analyzing this ratio:

  • Calculation: Debt-to-equity ratio is calculated by dividing total liabilities by total shareholders' equity.
  • Industry Comparison: It is important to compare HarborOne Bancorp, Inc.'s (HONE) debt-to-equity ratio with industry averages to determine whether it is in line with its peers. Different industries have different capital structures, so a relevant comparison is crucial.
  • Trend Analysis: Analyzing the trend of the debt-to-equity ratio over time can provide insights into the company's changing financial leverage. A rising ratio may indicate increasing risk, while a declining ratio may suggest improved financial health.

Recent debt issuances, credit ratings, and refinancing activities offer additional insights into HarborOne Bancorp, Inc.'s (HONE) financial strategy. Monitoring any new debt issuances can reveal the company's need for capital and its ability to access credit markets. Credit ratings from agencies like Standard & Poor's, Moody's, and Fitch provide an independent assessment of the company's creditworthiness. Any changes in credit ratings can impact the company's borrowing costs and investor confidence. Refinancing activities, such as replacing existing debt with new debt at lower interest rates, can help the company reduce its interest expense and improve its cash flow.

Balancing debt financing and equity funding is a critical aspect of HarborOne Bancorp, Inc.'s (HONE) capital structure. Debt financing can provide a cost-effective way to fund growth initiatives, but it also increases financial risk. Equity funding, on the other hand, dilutes ownership but reduces financial leverage. The company's approach to balancing these two sources of funding depends on various factors, including its growth prospects, risk tolerance, and market conditions. Here are some considerations:

  • Growth Opportunities: If HarborOne Bancorp, Inc. (HONE) has attractive growth opportunities, it may be willing to take on more debt to fund these initiatives.
  • Risk Management: The company's risk management practices play a crucial role in determining its optimal capital structure. A conservative approach may favor equity funding, while a more aggressive approach may rely on debt financing.
  • Market Conditions: Prevailing interest rates and investor sentiment can influence the company's choice between debt and equity funding.

In summary, HarborOne Bancorp, Inc.'s (HONE) debt versus equity structure is a key determinant of its financial health and risk profile. By analyzing its debt levels, debt-to-equity ratio, recent financing activities, and approach to balancing debt and equity funding, investors can gain a better understanding of the company's financial strategy and potential investment risks and rewards.

Breaking Down HarborOne Bancorp, Inc. (HONE) Financial Health: Key Insights for Investors

HarborOne Bancorp, Inc. (HONE) Liquidity and Solvency

Analyzing HarborOne Bancorp, Inc.'s (HONE) financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term liabilities.

Key metrics for assessing liquidity include the current and quick ratios. These ratios provide insight into whether HarborOne Bancorp, Inc. (HONE) has enough liquid assets to cover its short-term liabilities. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets to provide a more conservative measure. As of the fiscal year 2024, specific figures for these ratios would offer a precise understanding of HarborOne Bancorp, Inc.'s (HONE) immediate financial health.

Working capital trends also provide valuable information. Working capital is the difference between a company's current assets and current liabilities. Monitoring the trend of working capital helps to identify whether HarborOne Bancorp, Inc. (HONE) is efficiently managing its short-term resources. An increasing working capital balance typically indicates improved liquidity, while a decreasing balance may signal potential challenges.

The cash flow statement offers a comprehensive view of HarborOne Bancorp, Inc.'s (HONE) cash inflows and outflows, categorized into operating, investing, and financing activities. Examining these cash flow trends can reveal important insights:

  • Operating Cash Flow: Indicates the cash generated from HarborOne Bancorp, Inc.'s (HONE) core business operations. A positive and growing trend is generally a healthy sign.
  • Investing Cash Flow: Relates to the purchase and sale of long-term assets. Significant cash outflows in this category might indicate investments in future growth, while inflows could represent divestitures.
  • Financing Cash Flow: Involves activities related to debt, equity, and dividends. Analyzing this section helps understand how HarborOne Bancorp, Inc. (HONE) is funding its operations and returning value to shareholders.

A detailed overview of these cash flow trends for the fiscal year 2024 would provide a clearer picture of HarborOne Bancorp, Inc.'s (HONE) financial stability.

Potential liquidity concerns or strengths can be identified by analyzing these metrics in combination. For instance, a high current ratio coupled with strong operating cash flow would indicate a solid liquidity position. Conversely, a declining current ratio and negative operating cash flow could raise concerns about HarborOne Bancorp, Inc.'s (HONE) ability to meet its short-term obligations. Monitoring these indicators is crucial for investors to assess the overall financial risk and stability of HarborOne Bancorp, Inc. (HONE).

For further insights into investor activity, see Exploring HarborOne Bancorp, Inc. (HONE) Investor Profile: Who’s Buying and Why?

HarborOne Bancorp, Inc. (HONE) Valuation Analysis

To assess whether HarborOne Bancorp, Inc. (HONE) is overvalued or undervalued, several key financial metrics and market indicators should be considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

As of April 2024, HarborOne Bancorp had a P/E ratio of 8.92, which is lower than the industry average of 11.84. This could suggest that the stock is undervalued relative to its peers. The P/B ratio is 0.74, also indicating potential undervaluation since it's below 1.0. These ratios provide a snapshot of how the company's market value compares to its earnings and book value, respectively.

Here's a summary of HarborOne Bancorp, Inc.'s key valuation ratios:

Ratio Value (April 2024) Industry Average
Price-to-Earnings (P/E) 8.92 11.84
Price-to-Book (P/B) 0.74 Varies
EV/EBITDA Not Available Varies

Analyzing stock price trends, HarborOne Bancorp Inc. (HONE) has experienced fluctuations over the past year. As of April 18, 2025, the stock was trading at $12.78. The 52-week high is $14.13, and the 52-week low is $10.34. Monitoring these trends helps investors understand the stock's volatility and potential growth trajectory.

Key stock price milestones include:

  • Current Price (April 18, 2025): $12.78
  • 52-Week High: $14.13
  • 52-Week Low: $10.34

HarborOne Bancorp's dividend yield stands at approximately 4.45%, with an annual dividend of $0.57 per share. The payout ratio, which indicates the proportion of earnings paid out as dividends, is an important factor for income-seeking investors. A sustainable payout ratio ensures the company can continue to pay dividends without straining its finances.

Dividend-related metrics include:

  • Dividend Yield: 4.45%
  • Annual Dividend: $0.57

Analyst consensus provides another layer of insight. Based on available data, the consensus is to hold the stock. This reflects a neutral sentiment, suggesting that analysts do not foresee significant upside or downside in the near term.

For more insights into HarborOne Bancorp, Inc.'s mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of HarborOne Bancorp, Inc. (HONE).

HarborOne Bancorp, Inc. (HONE) Risk Factors

Several internal and external risk factors can impact HarborOne Bancorp, Inc.'s financial health. These include industry competition, regulatory changes, and broader market conditions. Understanding these risks is crucial for investors.

Here's a breakdown of key risks:

  • Industry Competition: Intense competition in the financial services industry could impact HarborOne's ability to attract and retain customers, affecting growth and profitability.
  • Regulatory Changes: Changes in regulations and accounting standards can significantly affect HarborOne’s operations and financial reporting.
  • Market Conditions: General business and economic conditions, including inflation and concerns about inflation, both nationally and in the local markets where HarborOne operates, can adversely affect borrowers' ability to service and repay loans.

Operational, financial, and strategic risks are often highlighted in earnings reports and filings. For instance, the third quarter of 2024 saw a significant drop in net income, driven by a $5.9 million credit loss provision related to suburban office real estate. Despite this, loan and deposit growth showed positive trends.

Specific risks detailed in SEC filings include:

  • Credit risk: Potential for increased loan default and charge-off rates.
  • Investment portfolio risk: Changes in the value of securities in the company's investment portfolio.
  • Real estate value fluctuations: Fluctuations in real estate values impacting the value of collateral.
  • Liquidity risk: Decreases in deposit levels necessitating increased borrowing to fund loans and investments.
  • Operational risks: Including IT systems, cybersecurity, and reliance on critical service providers.

Moreover, HarborOne's reliance on a limited number of core banking technology providers introduces vendor dependency risks. These vendors include Fiserv and Jack Henry. Key vendor dependencies include core banking system infrastructure, transaction processing platforms, and digital banking technology solutions. The costs associated with switching technology providers can be substantial:

Switching Cost Category Estimated Cost Range
Technology Migration $1.2 million - $3.5 million
Data Transfer $250,000 - $750,000
Staff Retraining $150,000 - $450,000

To mitigate these risks, HarborOne employs several strategies:

  • Hedging Strategies: HarborOne Mortgage has used economic hedges to mitigate potential losses from mortgage servicing rights (MSR) in fluctuating interest rate environments.
  • Proactive Monitoring: Regular review of online accounts for unauthorized transactions and requiring dual control for executing transactions can prevent fraudulent activity.
  • Cybersecurity Measures: Implementing dedicated computers for online banking, password protection, and regular software updates to protect against cyber-attacks.
  • Business Continuity Planning: Ensuring plans are in place to address potential disruptions.

Despite these challenges, HarborOne is taking steps to manage risks and improve performance. For example, in the fourth quarter of 2024, HarborOne reported net income of $8.9 million, or $0.21 per diluted share, driven by a $546,000 release of tax reserve for uncertain tax positions that were resolved.

For more insights into HarborOne Bancorp, Inc.'s financial health, check out this detailed analysis: Breaking Down HarborOne Bancorp, Inc. (HONE) Financial Health: Key Insights for Investors

HarborOne Bancorp, Inc. (HONE) Growth Opportunities

HarborOne Bancorp, Inc. (HONE) faces a landscape of both opportunities and challenges in the coming years. Understanding these dynamics is crucial for investors evaluating the company's long-term potential. The analysis includes key growth drivers, revenue projections, strategic initiatives, and competitive advantages.

Key growth drivers for HarborOne Bancorp, Inc. (HONE) include:

  • Market Expansion: Expanding its presence within existing markets and selectively entering new markets.
  • Product Innovation: Introducing new financial products and services that cater to evolving customer needs.
  • Strategic Acquisitions: Pursuing strategic acquisitions to increase market share and expand its service offerings.
  • Digital Transformation: Investing in digital technologies to enhance customer experience and improve operational efficiency.

While specific future revenue growth projections and earnings estimates for HarborOne Bancorp, Inc. (HONE) aren't available, several strategic initiatives suggest potential growth:

  • Community Involvement: Focus on local community development to foster customer loyalty and brand recognition.
  • Customer-Centric Approach: Emphasis on personalized customer service to attract and retain clients.
  • Technology Investments: Upgrading technology infrastructure to support digital banking initiatives and improve cybersecurity.

HarborOne Bancorp, Inc. (HONE) competitive advantages that position the company for growth include:

  • Strong Local Presence: Deep roots in the communities it serves, fostering strong customer relationships.
  • Experienced Management Team: A seasoned leadership team with a track record of successful execution.
  • Solid Capital Position: A strong capital base that supports lending activities and future growth initiatives.

Here is an overview of key financial data for HarborOne Bancorp, Inc. (HONE) based on the 2024 fiscal year:

Category Value
Total Assets $4.6 billion
Total Loans $3.7 billion
Total Deposits $3.8 billion

For more insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of HarborOne Bancorp, Inc. (HONE).

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