HarborOne Bancorp, Inc. (HONE): ANSOFF MATRIX [Dec-2025 Updated]

So, you're looking at the growth blueprint for HarborOne Bancorp, Inc. (HONE) right after that big merger, trying to figure out where the real action is. Honestly, the strategy map shows a clear path: they aren't just sitting still. On the near-term side, the focus is tight-they need to chip away at that 104.38% loans-to-deposits ratio by pushing core deposits up by 1.9% quarterly and selling treasury services to that massive 47% commercial real estate book. But the real excitement is further out, with plans to potentially launch a digital-only bank across New England, roll out a premium wealth product to boost that $12.2 million noninterest income, or even acquire a FinTech firm. Read on, because I've broken down exactly what each of these four strategic levers means for their footprint and customer base.

HarborOne Bancorp, Inc. (HONE) - Ansoff Matrix: Market Penetration

You're looking at how HarborOne Bancorp, Inc. (HONE) can deepen its hold in its current markets using existing products. This is about getting more from the customers you already serve, which is often the safest growth path, especially with the pending merger with Eastern Bankshares, Inc. announced on April 24, 2025.

The focus here is on driving volume from the existing client base. For instance, in the first quarter of 2025, HarborOne Bancorp, Inc. saw core funding improvement as deposits, excluding brokered deposits, increased by $\mathbf{\$79.6}$ million, representing a $\mathbf{1.9\%}$ quarter-over-quarter growth. That $\mathbf{1.9\%}$ growth sets the benchmark for your high-yield savings campaigns going forward.

Here's a quick look at some key metrics from the first half of 2025, which frame the current operational reality:

You need to target the largest segment of the loan book for immediate cross-selling opportunities. Commercial real estate (CRE) clients currently make up $\mathbf{47\%}$ of the total loan portfolio as of the end of Q1 2025. The push is to cross-sell treasury services into this $\mathbf{47\%}$ segment, moving them deeper into the HarborOne Bancorp, Inc. ecosystem.

Commercial and Industrial (C&I) lending shows clear momentum for penetration. In Q1 2025, C&I loan growth hit $\mathbf{\$33.0}$ million, even as the bank managed CRE balances down. By Q2 2025, C&I loans still managed to increase by $\mathbf{\$16.5}$ million, showing underlying demand. Offering specialized industry financing specifically in Eastern Massachusetts should help boost this trend further.

Liquidity management remains a priority, evidenced by the loans-to-deposits ratio improving by 225 basis points in Q1 2025, moving from $106.63\%$ down to $\mathbf{104.38\%}$. To continue this improvement and attract new non-brokered deposits, a limited-time offer is planned. This is important because total deposits fell $\mathbf{\$125.1}$ million quarter-over-quarter in Q2 2025, with brokered deposits specifically declining by $\mathbf{\$51.1}$ million in that same period.

Operational efficiency is another lever for market penetration success. The goal is to maximize digital banking adoption among current customers. This action directly supports reducing the efficiency ratio, which stood at $\mathbf{74.57\%}$ in Q2 2025. The bank saw noninterest expense flat at $\mathbf{\$32.9}$ million in Q1 2025, so digital adoption helps manage that cost base while improving customer experience.

The loan portfolio composition from Q1 2025 provides clear targets for existing product penetration:

• CRE loans: $\mathbf{47\%}$ of the portfolio.
• Residential 1-4 family loans: $\mathbf{31\%}$ of the portfolio.
• Commercial and Industrial (C&I) loans: $\mathbf{13\%}$ of the portfolio.

Finance: draft a 13-week cash flow view by Friday.

HarborOne Bancorp, Inc. (HONE) - Ansoff Matrix: Market Development

The Market Development quadrant for HarborOne Bancorp, Inc. centers on taking existing products and services into new geographic areas.

Establish a commercial lending office in a contiguous state like Connecticut to expand the existing $4.8 billion loan portfolio, which as of Q1 2025 was composed of 47% commercial real estate, 31% residential 1-4 family, and 13% commercial and industrial loans.

Launch a targeted digital-only bank offering to capture younger demographics across New England, outside the current Massachusetts and Rhode Island branch network of 30 full-service banking centers.

Partner with regional universities to offer specialized student and faculty banking packages, leveraging the HarborOne U educational platform, which already provides free digital content, webinars, and recordings for small business and personal financial education.

Focus the HarborOne Mortgage subsidiary on underserved, non-footprint states with high-volume, low-risk residential mortgage markets. HarborOne Mortgage, LLC, a subsidiary of HarborOne Bank, already provides mortgage lending services throughout New England and other states.

The following table outlines the existing footprint context for this market development strategy:

Key existing resources supporting this market development include:

• HarborOne U digital educational content.
• Commercial lending offices in Boston and Providence.
• Mortgage services already operating in New England and other states.

The proposed expansion into a contiguous state like Connecticut would target new geographic markets for the existing commercial lending capabilities.

HarborOne Bancorp, Inc. (HONE) - Ansoff Matrix: Product Development

You're looking to expand revenue streams beyond traditional lending, which is smart, especially when noninterest income was $\text{12.2 million}$ in Q2 2025. That figure represented a $\text{2.3 million}$ quarter-over-quarter increase, so you definitely see the upside in fee-based services.

For high-net-worth clients, you should roll out a premium, tiered wealth management offering. Think about structuring it with clear asset thresholds-say, a Platinum tier starting at $\text{\$5}$ million in assets under management. This directly targets growing that noninterest income base, which was $\text{12.2 million}$ in Q2 2025. We need to move beyond the existing partnership structure to capture more of the recurring management fee.

Next, let's tackle commercial and industrial (C&I) lending efficiency. You saw C&I loans increase by $\text{33.0 million}$ in Q1 2025, showing demand exists, but the process needs a digital boost. Develop a proprietary small business lending application that offers instant decisioning for smaller C&I facilities, maybe up to $\text{\$500,000}$. This cuts down on the time it takes to close, which is defintely a competitive edge.

To deepen local relationships, create a specialized municipal banking division. HarborOne Bank already serves municipalities across your current Massachusetts and Rhode Island footprint through $\text{30}$ full-service banking centers. This new division would focus solely on capturing local government deposits and specialized financing needs, perhaps packaging the existing High Yield Municipal Money Market accounts with bespoke capital project assistance.

Also, consider integrating new recurring fee products into your existing deposit base. Offer a new suite of cyber-insurance and fraud protection services layered onto standard and business deposit accounts. Since you already offer fraud prevention tools like Soft Tokens and Email activity alerts, this is a natural extension for a recurring fee.

Here's a quick look at some relevant 2025 figures to anchor these product ideas:

You want to ensure the technology investment for the small business app is prioritized over the Q3 2025 marketing spend for the new insurance suite, given the pending merger announcement.

Finance: draft the projected fee income lift from the tiered wealth management product for the Q4 2025 budget review by October 25th.

HarborOne Bancorp, Inc. (HONE) - Ansoff Matrix: Diversification

You're looking at how HarborOne Bancorp, Inc. (HONE) could have pursued growth outside its core banking and mortgage origination/servicing in Massachusetts and Rhode Island, which is the Diversification quadrant of the Ansoff Matrix. This means new products in new markets, or new products/services entirely separate from traditional lending.

Consider the scale of the recent transaction: Eastern Bankshares, Inc. (EBC) acquired HarborOne Bancorp, Inc. (HONE) for approximately $480 million, a deal expected to deliver 16% earnings accretion with a tangible book value earn back of 2.8 years. This transaction itself represents a form of market consolidation, but the proposed strategies below look at new business lines entirely.

For context on the existing business scale as of the second quarter ended June 30, 2025, here are the key figures:

Entering the non-bank transaction services market via a FinTech acquisition would position HarborOne Bancorp, Inc. (HONE) to capture fee income streams less correlated with interest rate cycles. The venture debt fund targets the early-stage tech ecosystem in the Boston area, a market where the bank already has regional presence but would require specialized underwriting expertise separate from commercial real estate exposure, which saw average balances decline by $46.8 million on average in Q2 2025.

Acquiring an insurance brokerage represents a direct cross-sell opportunity into the existing customer base. For example, the bank's existing wealth management division provides a platform for integrating advisory services. The development of a national online platform for HarborOne U content moves an existing community service into a monetizable national digital product. This leverages existing intellectual property.

The HarborOne U financial education content already serves specific group sizes and offers specific tools, providing a baseline for a national subscription model:

• Programs delivered to groups ranging from 15 to 200 participants.
• The FitMoney Certificate curriculum consists of 12 short videos.
• The Money Smart Games suite includes 14 resources.
• The 'Millionaire Mindset' program is a 1-hour session.
• The 'Financial Wellbeing' session is 1 1/2 hour long.

For the insurance brokerage acquisition, the focus would be on immediate revenue capture through cross-selling property and casualty policies to the existing commercial and retail loan portfolio. The bank's Q2 2025 Net Interest and Dividend Income was $33.2 million, showing the scale of the core revenue stream that diversification aims to supplement.

The venture debt fund would require capital allocation separate from the core loan portfolio, which had average balances decrease by $52.0 million in Q2 2025. A fund launch would likely target an initial committed capital of tens of millions, perhaps in the range of $25 million to $50 million to establish credibility in the Boston tech scene.

Finance: draft pro-forma capital requirement analysis for a $50 million venture debt fund by Friday.