HarborOne reports $4.7M Q1 profit

HARBORONE BANKCORP INC. reported a $4.7 million profit in the first quarter of 2020.

BROCKTON, Mass. – HarborOne Bancorp Inc., parent of HarborOne Bank, reported a $4.7 million profit in the first quarter of 2020, more than doubling its earnings compared to the first quarter of 2019, the company announced on Monday.

The $4.7 million earnings represents a 129% increase over the $2.1 million reported in the same time frame last year. Earnings per diluted share also increased from 4 cents to 9 cents.

The marked revenue increase comes at a time when banks across the state and region are reporting significant drops in quarterly earnings, as they shore up funds in anticipation of bad loans amid the coronavirus crisis. HarborOne also upped its provision for loan losses to $3.7 million, versus $857,000 a year ago. The increase includes a $1.5 million provision directly related to anticipated losses due to COVID-19, as well as $1.2 million for a commercial real estate loan charge-off unrelated to the pandemic, the company stated.

Total revenue was up 19.5% to $56 million, driven by a 91.7% increase in noninterest income to $18.9 million. This reflected a spike in mortgage banking activity – both originations and refinancing – due to lower interest rates, 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, ticked up 2.6% to $26.7 million, reflecting a slight increase in interest-earning assets as a result of commercial loan growth which was partially offset by a decrease in yield on those assets. 

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Noninterest expenses increased 8.6% to $35.4 million, including $1.9 million more in employee compensation and benefits.

Total loans hit $3.7 billion, up from $3.3 billion, including a $282.6 million increase in commercial loans. Quarterly assets stood at $4 billion compared to $3.6 billion at the same time last year.

Total deposits reached $3 billion, up $184.6 million over a year ago.

“While the COVID-19 disruption is unprecedented, I’m so proud of how our team has responded. We’ve remained open for business with appointment banking, drive-through service, call center support, and borrower accommodations,” CEO James Blake said in a statement. “We’ve led the market in our response to the SBA’s Paycheck Protection Program, and earned new business as a result, while continuing to support our existing customers.”  

As of April 16, the bank reported processing 691 PPP loans worth $138.8 million.

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