Capital return remains a priority with $3.9 million in dividends and $3.1 million in buybacks during 2025Q2, despite operating cash flow turning negative at -$5.0 million.
| Cash from Operations | 46.78M | 3.84M | 53.51M | 68.9M | 224.29M | -26.95M | -36.13M | 61.16M | 43.88M | -4.32M | 29.36M | 18.67M |
| Operating CF Growth % | 254.05% | -92.82% | -22.34% | -69.28% | 932.2% | 25.4% | -159.06% | 39.41% | 1116.8% | -114.7% | 57.28% | - |
| Net Income | 26.37M | 27.41M | 16.08M | 45.59M | 58.52M | 44.79M | 18.27M | 11.39M | 10.38M | 5.93M | 5.77M | 2.57M |
| Depreciation & Amortization | 4.39M | 4.49M | 4.6M | 4.82M | 5.62M | 5.68M | 6.74M | 3.95M | 3.03M | 2.71M | 2.85M | 2.75M |
| Deferred Taxes | 0 | -5.05M | -1.78M | 3.16M | 6.43M | -3.61M | -556K | -1.14M | -698K | -1.26M | 1.14M | 431K |
| Other Non-Cash Items | 18.37M | -11.44M | 14.33M | 20.12M | 137.17M | -77.45M | -60.42M | 29.3M | 5.31M | 4.88M | 3.63M | 9.73M |
| Working Capital Changes | -7.33M | -16.31M | 15.61M | -11.38M | 9.61M | -2.14M | -7.66M | 11.93M | 22.61M | -17.54M | 15.97M | 3.18M |
| Cash from Investing | 97.83M | -76.7M | -196.71M | -952.02M | -241.05M | -318.85M | -228.83M | -215.9M | -237.44M | -254.39M | -79.56M | -116.05M |
| Purchase of Investments | -29.76M | -15.63M | -4.61M | -36.05M | -316.75M | -191.56M | -109.29M | -67.69M | -59.22M | -43.71M | -52.63M | -102.63M |
| Sale/Maturity of Investments | 20.13M | 37.44M | 21.57M | 43.43M | 188.02M | 183.38M | 103.3M | 28.69M | 25.37M | 49.75M | 65.92M | 88.92M |
| Net Investment Activity | -9.64M | 21.81M | 16.97M | 7.38M | -128.72M | -8.18M | -5.99M | -39M | -33.84M | 6.04M | 13.3M | -13.71M |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 99K | -73.99M | 0 | 0 | -18.62M | 0 |
| Other Investing | 108.73M | -97.27M | -209.2M | -957.13M | -105.87M | -304.93M | -218.51M | -97.37M | -200.41M | -258.29M | -72.76M | -101.09M |
| Cash from Financing | -176.63M | 76.58M | 272.54M | 786.42M | 5.61M | 340.06M | 371.06M | 179.47M | 224.14M | 268.27M | 37.88M | 75.03M |
| Dividends Paid | -13.46M | -13.11M | -12.83M | -12.19M | -9.2M | -3.26M | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -18.66M | -21.55M | -45.21M | -62.52M | -69.22M | -15.92M | -721K | -1.27M | -280K | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 304.06M | 0 | 0 | 140.53M | 0 | 0 |
| Net Stock Activity | -18.66M | -21.55M | -45.21M | -62.52M | -69.22M | -15.92M | 303.34M | -1.27M | -280K | 140.53M | 0 | 0 |
| Debt Issuance (Net) | -2M | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K |
| Other Financing | 35.22M | 163.14M | 197.78M | 516.17M | 177.4M | 564.27M | 233.52M | 194.19M | 209.17M | 102.22M | 191.54M | 85.03M |
| Net Change in Cash | -32.01M | 3.72M | 129.33M | -96.7M | -11.15M | -5.75M | 106.09M | 24.73M | 30.58M | 9.56M | -12.33M | -22.36M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 230.49M | 227.35M | 98.02M | 194.72M | 205.87M | 211.62M | 105.52M | 80.79M | 50.22M | 40.65M | 52.98M | 75.34M |
| Cash at End | 203.05M | 231.07M | 227.35M | 98.02M | 194.72M | 205.87M | 211.62M | 105.52M | 80.79M | 50.22M | 40.65M | 52.98M |
| Interest Paid | 141.03M | 144.25M | 115M | 21.02M | 12.66M | 29.16M | 45.76M | 25.65M | 15.95M | 13.78M | 14.64M | 16.02M |
| Income Taxes Paid | 291K | 9.84M | 10.97M | 11.67M | 20.89M | 18.09M | 3.63M | 2.83M | 5.56M | 3.7M | 1.09M | 953K |
| Free Cash Flow | 45.53M | 2.6M | 49.03M | 66.63M | 217.84M | -32.69M | -40.56M | 55.62M | 40.69M | -6.45M | 27.87M | 17.41M |
| FCF Growth % | 407.19% | -94.69% | -26.42% | -69.41% | 766.31% | 19.4% | -172.93% | 36.7% | 730.54% | -123.15% | 60.06% | - |
Mortgage and auto credit volatility
As reported in recent financial filings, HarborOne's dividend and buyback activity has remained consistent despite earnings volatility, with $3.9 million in dividends and $3.1 million in share repurchases during 2025Q2, suggesting that management prioritizes shareholder returns even when operating cash flow turns negative at -$5.0 million.
The bank's commitment to capital returns appears to be a strategic signal of confidence, yet the reliance on capital reserves to fund these distributions during periods of negative operating cash flow warrants close monitoring. Investors should consider whether this payout level remains sustainable if the mortgage segment continues to face origination volume headwinds.
Based on the provided quarterly data, HarborOne increased its investment purchases to $24.8 million in 2025Q2, a significant departure from the zero-purchase activity observed in several prior quarters, which may indicate a tactical attempt to lock in yields or manage liquidity within the investment securities portfolio.
This shift toward active purchasing suggests management is attempting to optimize the balance sheet's earning asset mix in a high-rate environment. However, the timing of these purchases relative to interest rate volatility could impact future net interest margin performance if the cost of funding these assets continues to rise.
According to historical cash flow data, HarborOne's provision expense has shown significant variability, peaking at $5.9 million in 2024Q3, which underscores the inherent credit risk within the indirect auto lease portfolio and the potential for lumpy earnings impacts under the current CECL accounting framework.
The fluctuation in provisioning suggests that the bank is actively adjusting its reserves to account for evolving consumer credit stress in its specialized lending niches. Analysts should interpret these swings as a leading indicator of potential future charge-offs rather than just accounting adjustments, particularly given the regional economic concentration.
As indicated by the wide swings in the OCF/NI ratio, which reached a negative 5.42 in 2024Q2 and a positive 6.35 in 2024Q3, the bank's reported cash flow is heavily distorted by non-cash items and transactional mortgage activity that mask the underlying core banking performance.
The extreme variance in these ratios suggests that traditional cash flow analysis is insufficient for evaluating HarborOne's operational health. Investors should look past these headline figures to focus on pre-provision net revenue, as the cash flow statement appears to be dominated by timing differences in loan originations and mortgage servicing rights valuations.
Quick answers to the most common questions about buying HONE stock.
HarborOne Bancorp, Inc. (HONE) generated $3.8M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
HarborOne Bancorp, Inc. (HONE) generated $2.6M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
HarborOne Bancorp, Inc. (HONE) spent $1.2M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, HarborOne Bancorp, Inc. (HONE) returned $13.1M to shareholders via cash dividends and spent $21.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.