What happened
Shares of the Massachusetts community bank HarborOne Bancorp (NASDAQ: HONE) rose this week after the company reported its third-quarter earnings results for the year.
According to data provided by S&P Global Market Intelligence, shares traded 11.3% higher on the week as of 2:40 p.m. ET Thursday.
So what
The nearly $5 billion asset bank reported diluted earnings per share of $0.30 on total revenue of about $53.5 million. Both numbers beat analyst estimates for the quarter.
HarborOne's CEO Joseph Casey said in a statement:
The Company continues to drive revenue through expanded margin which was up 30 basis points (0.30 percentage points) year-over-year resulting in net interest income expansion of $12.4 million, or 12.7%.
Our mortgage segment remains profitable as the increasing value of our servicing rights, coupled with expense reductions, partially offset declining origination volume and gain-on-sale margins.Still, mortgage-banking income has taken a hit in the rapidly rising interest rate environment, with total mortgage-banking income in the third quarter down 48% year over year, which of course is not uncommon. But the bank has maintained strong credit quality and in September announced plans to launch another share-repurchase program to purchase as much as 5% of outstanding shares once its current repurchase program is completed.
Now what
HarborOne reported a solid quarter despite the headwinds to its mortgage-banking business, which were offset by rising net-interest income and increased value of the bank's mortgage-servicing rights.
The bank also continues to be a very healthy buyer of its own stock, so it looks to be managing the difficult environment well, with shares just slightly down this year.
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