BROCKTON, Mass. – HarborOne Bancorp Inc., parent of HarborOne Bank, more than doubled its year-over-year earnings, reporting record residential real estate mortgage closings, the company announced on Thursday.
The $10.6 million profit represents a 121% increase over the $4.8 million earnings in the second quarter of 2019. Earnings per diluted share also increased from 8 to 16 cents. The jump in profits comes despite a significant set-aside for bad loans due to the economic conditions caused by COVID-19. The company allocated $10 million in its provision for loan losses this quarter, versus $1.8 million a year ago.
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Learn MoreTotal revenue hit $75.3 million, a 39% year-over-year increase driven primarily by a 145% jump in noninterest income. Of the $38.6 million in noninterest income, $30.8 9 million came from gain on the sale of mortgage loans amid record-breaking mortgage demand in a continued low interest rate environment, the company stated.
Net interest income, the difference between interest earned on assets like loans, mortgages and securities and interest paid out to customer deposits, increased 10.2% to $19.4 million, a function of declining expenses in interest on deposits which was partially offset by rate and volume changes in interest-bearing assets and liabilities.
Noninterest expenses totaled $43.8 million, a 25% jump over a year ago due to a $6.9 million boost in employee compensation and benefits to accommodate higher volume of mortgage originations, the company stated.
Total loans of $3.4 billion represented an 11.4% increase over a year ago, driven primarily by the $1.9 billion in commercial loans which included $156.2 million to 1,071 small businesses through the U.S. Small Business Administration’s Paycheck Protection Program.
Total quarterly assets stood at $4.3 billion, an increase from $3.6 billion a year ago. Total quarterly deposits were $3.8 billion compared to $3.4 billion in the second quarter of 2019.
Net interest margin, the difference between interest income generated versus the amount of interest paid out to lenders, declined 19 basis points to 3.00%.
“The strength of our second quarter performance is a testament to our ability to execute in the face of extreme change. We’ve kept our focus on customers and how we support them, while keeping staff safe and healthy. Our customers are telling us how they want to bank moving forward, and we will continue to listen, learn, and transform how we operate to meet those needs.” James Blake, CEO, said in a statement.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.