PROVIDENCE – HarborOne Bank’s holding company reported Thursday a 54% increase in net income in the second quarter compared with the same period last year, reflecting its acquisition of Warwick-based Coastway Community Bank, completed in October.
Brockton, Mass.-based HarborOne Bancorp Inc. reported net income of $4.8 million, or 15 cents per diluted share, in the quarter ended June 30, compared with net income of $3.1 million, or 10 cents per diluted share, in the second quarter of last year.
Revenue in the second quarter totaled $54 million, a 39% increase from $38.8 million in the same period last year. Interest income was $38.3 million and non-interest income was $15.7 million in the second quarter.
Total assets increased 30% to $3.7 billion in the second quarter compared with $2.9 billion a year earlier.
The company’s loan portfolio grew year-over-year by 33% to nearly $3.1 billion. Deposits, meanwhile, grew by 35% to nearly $3 billion. Mortgages on commercial and residential real estate accounted for $2.3 billion of the total loan portfolio.
“The first half of the year provided strong commercial loan and deposit growth,” HarborOne CEO James W. Blake said in a statement.
“We were pleased with the increased production at HarborOne Mortgage this quarter, spurred by falling interest rates and the spring real estate market,” Blake added. “Early indicators are that the mortgage application volume will remain strong through the summer.”
Increases in total interest and dividend income reflect an increase in the yield on loans to 4.70% from 4.25%, primarily driven by growth due to the Coastway acquisition, as well as organic commercial loan growth and higher rates on commercial loans, HarborOne said.
The increases were partially offset by an increase in total interest expense. That was primarily due to an increase in average interest-bearing deposits of $621.1 million with a 56 basis point increase in the cost of those funds, due to deposits acquired from Coastway and organic deposit growth in money market and term certificate of deposits, HarborOne said.
In October, HarborOne completed its acquisition to Coastway Bancorp Inc. for $125.6 million. HarborOne absorbed Coastway’s nine branches in the Greater Providence area, as well as Coastway’s $739 million in assets and $477 million in deposits.
In March, HarborOne announced a plan to reorganize the company into a fully public stock holding structure. The company is listed on the Nasdaq Stock Exchange under the symbol “HONE.”
Today, HarborOne operates 24 branches in Massachusetts and Rhode Island, in addition to one limited service branch and a commercial lending office each in Boston and Providence. In addition, HarborOne Mortgage LLC, a subsidiary, is a full-service mortgage lender with more than 30 offices in Massachusetts, Rhode Island, New Hampshire, Maine, and New Jersey.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com
