HarborOne Bancorp 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 01, 2018
Document and Entity Information
Entity Registrant Name	HarborOne Bancorp, Inc.
Entity Central Index Key	1,668,224
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		32,585,519
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 18,478	$ 16,348
Short-term investments	76,619	64,443
Total cash and cash equivalents	95,097	80,791
Securities available for sale, at fair value	191,847	170,853
Securities held to maturity, at amortized cost	47,371	46,869
Federal Home Loan Bank stock, at cost	13,263	15,532
Loans held for sale, at fair value	155,268	59,460
Loans	2,223,822	2,194,967
Less: Allowance for loan losses	(19,440)	(18,489)
Net loans	2,204,382	2,176,478
Accrued interest receivable	7,452	6,545
Other real estate owned and repossessed assets	672	762
Mortgage servicing rights, at fair value	23,748	21,092
Property and equipment, net	25,177	24,487
Retirement plan annuities	12,830	12,498
Bank-owned life insurance	41,171	40,446
Deferred income taxes, net	2,047	843
Goodwill and other intangible assets	13,726	13,497
Other assets	18,749	14,767
Total assets	2,852,800	2,684,920
Deposits:
Noninterest-bearing deposits	302,190	264,453
Interest-bearing deposits	1,816,620	1,675,795
Brokered deposits	66,831	73,490
Total deposits	2,185,641	2,013,738
Short-term borrowed funds	25,000	44,000
Long-term borrowed funds	206,187	246,365
Subordinated debt	33,855
Mortgagors' escrow accounts	4,655	5,221
Accrued interest payable	622	518
Other liabilities and accrued expenses	43,495	31,594
Total liabilities	2,499,455	2,341,436
Commitments and contingencies (Notes 2, 10 and 11)
Common stock, $0.01 par value; 90,000,000 shares authorized; 32,585,519 and 32,647,395 shares issued at September 30, 2018 and December 31, 2017, respectively	327	327
Additional paid-in capital	150,732	147,060
Retained earnings	218,977	207,590
Treasury stock, at cost, 81,676 and 14,900 shares at September 30, 2018 and December 31, 2017, respectively	(1,548)	(280)
Accumulated other comprehensive loss	(4,904)	(528)
Unearned compensation - ESOP	(10,239)	(10,685)
Total stockholders' equity	353,345	343,484
Total liabilities and stockholders' equity	$ 2,852,800	$ 2,684,920

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	90,000,000	90,000,000
Common Stock, shares issued	32,585,519	32,647,395
Treasury, shares	81,676	14,900

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest and dividend income:
Interest and fees on loans	$ 25,115	$ 20,990	$ 71,485	$ 59,765
Interest on loans held for sale	625	796	1,557	1,962
Interest on taxable securities	1,412	1,118	4,042	3,232
Interest on non-taxable securities	217	216	650	650
Other interest and dividend income	480	294	1,051	866
Total interest and dividend income	27,849	23,414	78,785	66,475
Interest expense:
Interest on deposits	5,409	2,812	13,382	7,811
Interest on FHLB borrowings	1,130	1,333	3,074	3,748
Interest on subordinated debentures	189		189
Total interest expense	6,728	4,145	16,645	11,559
Net interest and dividend income	21,121	19,269	62,140	54,916
Provision for loan losses	632	921	2,326	1,656
Net interest income, after provision for loan losses	20,489	18,348	59,814	53,260
Mortgage banking income:
Changes in mortgage servicing rights fair value	(378)	(488)	338	(1,982)
Other	9,249	11,071	24,275	30,117
Total mortgage banking income	8,871	10,583	24,613	28,135
Deposit account fees	3,302	3,172	9,493	9,088
Income on retirement plan annuities	100	114	332	337
Gain on sale of consumer loans				78
Bank-owned life insurance income	243	260	725	778
Other income	1,124	498	2,383	1,964
Total noninterest income	13,640	14,627	37,546	40,380
Noninterest expense:
Compensation and benefits	16,809	17,325	50,506	48,568
Occupancy and equipment	3,027	2,954	9,263	8,668
Data processing	1,702	1,547	4,824	4,597
Loan expenses	1,503	1,884	4,155	5,129
Marketing	639	1,136	2,722	2,659
Deposit expenses	308	311	965	1,019
Postage and printing	344	380	1,064	1,017
Professional fees	712	1,126	2,595	3,136
Foreclosed and repossessed assets	(45)	8	63	60
Deposit insurance	540	397	1,525	1,305
Other expenses	1,844	1,370	5,818	3,563
Total noninterest expense	27,383	28,438	83,500	79,721
Income before income taxes	6,746	4,537	13,860	13,919
Income tax provision	818	1,699	2,577	5,133
Net income	$ 5,928	$ 2,838	$ 11,283	$ 8,786
Earnings per common share:
Basic earnings per share (in dollars per share)	$ 0.19	$ 0.09	$ 0.36	$ 0.28
Diluted earnings per share (in dollars per share)	$ 0.19	$ 0.09	$ 0.36	$ 0.28
Weighted average shares outstanding:
Weighted average shares outstanding basic	31,575,210	31,303,281	31,574,681	31,109,104
Weighted average shares outstanding diluted	31,575,811	31,303,281	31,574,881	31,109,104

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Consolidated Statements of Comprehensive Income
Net income	$ 5,928	$ 2,838	$ 11,283	$ 8,786
Securities available for sale:
Unrealized holding gains (losses)	(1,501)	180	(5,476)	1,155
Related tax effect	330	(63)	1,204	(403)
Net-of-tax amount	(1,171)	117	(4,272)	752
Supplemental director retirement plan:
Reclassification adjustment for amortization of prior service cost		60		181
Related tax effect		(24)		(58)
Net-of-tax amount		36		123
Total other comprehensive income (loss)	(1,171)	153	(4,272)	875
Comprehensive income	$ 4,757	$ 2,991	$ 7,011	$ 9,661

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock, at Cost	Accumulated Other Comprehensive Loss	Unearned Compensation ESOP	Total
Balance, beginning of period at Dec. 31, 2016	$ 321	$ 144,420	$ 197,211		$ (1,290)	$ (11,278)	$ 329,384
Balance, beginning of period (in shares) at Dec. 31, 2016	32,120,880
Comprehensive income (loss)			8,786		875		9,661
ESOP shares committed to be released (44,520 shares)		412				445	857
Restricted stock awards granted	$ 6	(6)
Restricted stock awards granted (in shares)	541,415
Share-based compensation expense		699					699
Balance, end of period at Sep. 30, 2017	$ 327	145,525	205,997		(415)	(10,833)	340,601
Balance, end of period (in shares) at Sep. 30, 2017	32,662,295
Balance, beginning of period at Jun. 30, 2017					(568)
Comprehensive income (loss)							2,991
Balance, end of period at Sep. 30, 2017	$ 327	145,525	205,997		(415)	(10,833)	340,601
Balance, end of period (in shares) at Sep. 30, 2017	32,662,295
Balance, beginning of period at Dec. 31, 2017	$ 327	147,060	207,590	$ (280)	(528)	(10,685)	343,484
Balance, beginning of period (in shares) at Dec. 31, 2017	32,647,395
Comprehensive income (loss)			11,283		(4,272)		7,011
Stranded effect of tax rate changes (Note 1)			104		(104)
ESOP shares committed to be released (44,520 shares)		390				446	836
Restricted stock awards granted (in shares)	4,900
Share-based compensation expense		3,282					3,282
Treasury stock purchased				(1,268)			(1,268)
Treasury stock purchased (in shares)	(66,776)
Balance, end of period at Sep. 30, 2018	$ 327	150,732	218,977	(1,548)	(4,904)	(10,239)	353,345
Balance, end of period (in shares) at Sep. 30, 2018	32,585,519
Comprehensive income (loss)							4,757
Balance, end of period at Sep. 30, 2018	$ 327	$ 150,732	$ 218,977	$ (1,548)	$ (4,904)	$ (10,239)	$ 353,345
Balance, end of period (in shares) at Sep. 30, 2018	32,585,519

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Consolidated Statements of Changes in Stockholders’ Equity
ESOP shares committed to be released	44,520	59,359	44,520

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 11,283,000	$ 8,786,000
Adjustments to reconcile net income to net cash used by operating activities:
Provision for loan losses	2,326,000	1,656,000
Net amortization of securities premiums/discounts	432,000	523,000
Net amortization of net deferred loan costs/fees and premiums	2,604,000	3,672,000
Depreciation and amortization of premises and equipment	2,174,000	2,122,000
Change in mortgage servicing rights fair value	(338,000)	1,982,000
Mortgage and consumer servicing rights capitalized	(1,268,000)	(2,054,000)
Amortization of consumer servicing rights	35,000	42,000
Accretion of fair value adjustment on loans and deposits, net	(247,000)	(260,000)
Amortization of intangible assets	35,000	66,000
Bank-owned life insurance income	(725,000)	(778,000)
Income on retirement plan annuities	(332,000)	(337,000)
Gain on sale of portfolio loans		(36,000)
Fair value adjustment gain on loans transferred to held for sale	(472,000)
Net (gain) loss on sale and write-down of other real estate owned and repossessed assets	(36,000)	57,000
Deferred income tax benefit		(128,000)
ESOP expenses	836,000	857,000
Share-based compensation expense	3,282,000	699,000
Net change in:
Loans held for sale	8,965,000	(9,758,000)
Other assets and liabilities, net	6,861,000	(4,114,000)
Net cash provided by operating activities	35,415,000	2,997,000
Activity in securities available for sale:
Maturities, prepayments and calls	18,292,000	16,697,000
Purchases	(44,943,000)	(45,461,000)
Activity in securities held to maturity:
Maturities, prepayment and calls	2,243,000	2,920,000
Purchases	(2,996,000)	(3,052,000)
Net redemption (purchase) of FHLB stock	2,269,000	(607,000)
Proceeds from sale of portfolio loans		5,007,000
Participation-in loan purchases	(71,699,000)	(52,982,000)
Loan originations, net of principal payments	(67,500,000)	(80,855,000)
Proceeds from sale of other real estate owned and repossessed assets	1,343,000	1,658,000
Additions to property and equipment	(2,864,000)	(2,267,000)
Net cash used by investing activities	(165,855,000)	(158,942,000)
Cash flows from financing activities:
Net increase in deposits	171,903,000	198,792,000
Net change in borrowed funds with maturities less than ninety days	(19,000,000)	(70,000,000)
Proceeds from other borrowed funds and subordinated debt	74,930,000	86,250,000
Repayment of other borrowed funds	(81,253,000)	(15,003,000)
Net change in mortgagors' escrow accounts	(566,000)	496,000
Treasury stock purchased	(1,268,000)
Net cash provided by financing activities	144,746,000	200,535,000
Net change in cash and cash equivalents	14,306,000	44,590,000
Cash and cash equivalents at beginning of period	80,791,000	50,215,000
Cash and cash equivalents at end of period	95,097,000	94,805,000
Supplemental cash flow information:
Interest paid on deposits	13,348,000	7,807,000
Interest paid on borrowed funds	3,170,000	3,734,000
Income taxes paid	1,826,000	5,247,000
Transfer of loans to other real estate owned and repossessed assets	1,261,000	969,000
Transfer of loans to loans held for sale	$ 105,351,000	$ 5,088,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation The unaudited interim Consolidated Financial Statements of HarborOne Bancorp, Inc. (the “Company”) presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by the U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments and disclosures considered necessary for the fair presentation of the accompanying Consolidated Financial Statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2017 and 2016 and notes thereto included in the Company’s Annual Report on Form 10-K. The unaudited interim Consolidated Financial Statements include the accounts of the Company; the Company’s subsidiaries, Legion Parkway Company LLC, a security corporation formed on July 13, 2016, HarborOne Bank (the “Bank”); and the Bank’s wholly-owned subsidiaries. The Bank’s subsidiaries consist of a mortgage company and two security corporations. Merrimack Mortgage Company, LLC was acquired and became a wholly-owned subsidiary of the Bank on July 1, 2015, and effective April 3, 2018 became HarborOne Mortgage, LLC (“HarborOne Mortgage”). The security corporations were established for the purpose of buying, holding and selling securities on their own behalf. All significant intercompany balances and transactions have been eliminated in consolidation. Stock Conversion On June 29, 2016, the Bank reorganized into a two-tier mutual holding company structure with the Company as a mid-tier stock holding company. The Company sold 14,454,396 shares of common stock at $10.00 per share, including 1,187,188 shares purchased by the Company’s Employee Stock Ownership Plan (“ESOP”). In addition, the Company issued 17,281,034 shares to HarborOne Mutual Bancshares, a mutual holding company (the “MHC”) and 385,450 shares to The HarborOne Foundation, a charitable foundation formed in connection with the stock offering and dedicated to supporting charitable organizations operating in the Bank’s local community. A total of 32,120,880 shares of common stock were outstanding following the completion of the stock offering. The direct costs of the Company’s stock offering of $3.9 million were deferred and deducted from the proceeds of the offering. Upon the completion of the stock offering, a special “liquidation account” was established for the benefit of certain depositors of the Bank in an amount equal to the percentage ownership interest in the equity of the Company held by persons other than the MHC as of the date of the latest balance sheet contained in the prospectus. The Company is not permitted to pay dividends on its capital stock if the Company’s shareholders’ equity would be reduced below the amount of the liquidation account. The liquidation account will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases in an eligible account holder’s qualifying deposits will not restore such holder’s interest in the liquidation account. Nature of Operations The Company provides a variety of financial services to individuals and businesses through its 23 full-service and two limited-service bank offices in eastern Massachusetts and Rhode Island, and two commercial lending offices in Boston, Massachusetts and Providence, Rhode Island. HarborOne Mortgage maintains 40 offices in Massachusetts, Rhode Island, New Hampshire, Maine, and New Jersey and is also licensed to lend in five additional states. The Company’s primary deposit products are checking, money market, savings and term certificate of deposit accounts while its primary lending products are commercial real estate, commercial, residential mortgages, home equity, and consumer loans. The Company also originates, sells and services residential mortgage loans through HarborOne Mortgage. Use of Estimates In preparing unaudited interim Consolidated Financial Statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuations of mortgage servicing rights, derivatives, goodwill and deferred tax assets. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed and generally do not exceed the time frame provided in the FDIC’s Uniform Retail Credit Classification and Account Management Policy. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. General component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the Company’s loan segments. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment except commercial real estate and commercial loans. Due to the lack of historical loss experience for our commercial real estate and commercial loan portfolio, we utilize peer loss data. Adjustments to this historical loss factor are considered for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during 2017 or the nine months ended September 30, 2018. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – The Company generally does not originate portfolio loans with a loan-to-value ratio greater than 80 percent without obtaining private mortgage insurance and does not generally grant loans that would be classified as subprime upon origination. The Company generally has first or second liens on property securing equity lines of credit. Loans in this segment are generally collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, can have an effect on the credit quality in this segment. Commercial real estate – Loans in this segment are primarily secured by income-producing properties in southeastern New England. The underlying cash flows generated by the properties can be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, could have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans. Construction – Loans in this segment include both residential and commercial construction loans. Residential construction loans include loans to build one- to four-family owner-occupied properties, which are subject to the same credit quality factors as residential real estate loans. Commercial construction loans may include speculative real estate development loans for which payment is derived from lease or sale of the property. Credit risk is affected by cost overruns, time to lease or sell at an adequate price, and market conditions. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality in this segment. Consumer – Loans in this segment are generally secured by automobiles or unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component relates to loans that are classified as impaired. Residential real estate, commercial, commercial real estate and construction loans are evaluated for impairment on a loan-by-loan basis. Impairment is determined by nonaccrual status, whether a loan is subject to a troubled debt restructuring agreement or in the case of certain loans, based on the internal credit rating. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, except for troubled debt restructurings (“TDRs”), the Company does not separately identify individual consumer loans for impairment evaluation. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. All TDRs are initially classified as impaired. Impairment is measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. Unallocated component The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. The unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. Additionally the Company's unseasoned commercial portfolio and use of peer group data to establish general reserves for the commercial portfolio adds another element of risk to management's estimates. Stock-based Compensation Plan The Company’s stock-based compensation plan provides for awards of stock options, restricted stock and other stock-based compensation to directors, officers and employees. The cost of employee services received in exchange for awards of equity instruments is based on the grant-date fair value of those awards. Compensation cost is recognized over the requisite service period as a component of compensation expense. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. The Company accounts for forfeitures of share-based payments by recognizing forfeitures of awards as they occur (e.g., when an award does not vest because the employee leaves the Company or does not meet specific performance measures). Earnings Per Share Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. The restricted stock awards are participating securities; therefore, unvested awards are included as common shares outstanding in the computation of basic earnings per share. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock option awards and are determined using the treasury stock method. Recent Accounting Pronouncements As an “emerging growth company”, as defined in Title 1 of the Jumpstart Our Business Startups (“JOBS”) Act, the Company has elected to use the extended transition period to delay the adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As of September 30, 2018, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. In October 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-16, Derivatives and Hedging (Topic 815) – Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedging Accounting Purposes . The purpose of ASU 2018-16 is to permit the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. The amendments in ASU 2018-16 are effective for public business entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, if ASU 2017-12 has already been adopted. Early adoption is permitted in any interim period upon issuance of ASU 2018-16 if a public business entity has adopted ASU 2017-12. The amendments in ASU 2018-16 should be applied prospectively for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The Company does not have any derivatives within the scope of the ASU. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). ASU 2018-02 amends ASU Topic 220 and allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Act”), to eliminate the stranded tax effects resulting from the Tax Act. The Company early adopted this amendment in the first quarter of 2018 and reclassified $104,000 from accumulated other comprehensive income to retained earnings. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. This guidance changes the recognition and presentation requirements of hedge accounting, including eliminating the requirement to separately measure and report hedge ineffectiveness and presenting all items that affect earnings in the same income statement line as the hedged item. This guidance also provides new alternatives for applying hedge accounting to additional hedging strategies, measuring the hedged item in fair value hedges of interest rate risk, reducing the complexity of applying hedge accounting by easing the requirements for effectiveness testing, hedge documentation and application of the critical terms match method, and reducing the risk of material error corrections if a company applies the shortcut method inappropriately. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company does not have any derivatives within the scope of the ASU. In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) , which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. The ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. For public entities that are SEC filers, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For non-public entities, this ASU is effective for fiscal years beginning after December 15, 2020, and for interim periods within fiscal years beginning after December 15, 2021. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management has identified an implementation team that is in the process of developing an understanding of this pronouncement, evaluating the impact of this pronouncement and researching additional software resources that could assist with the implementation. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) . This update requires a lessee to record a right-to-use asset and a liability representing the obligation to make lease payments for long-term leases. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For non-public business entities, this update is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years beginning after December 15, 2020. While we are currently evaluating the impact of the new standard, we expect an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities but no material impact to the Consolidated Statement of Operations, for arrangements previously accounted for as operating leases. In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall, (Subtopic 825-10). The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Targeted improvements to generally accepted accounting principles include the requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, the elimination of the requirement for non-public business entities to disclose the fair value of financial instruments measured at amortized cost and the elimination of the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For non-public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Management currently does not expect this to have a material impact on the Company's Consolidated Financial Statements as the Company does not currently hold any equity securities. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The amendments in this update create Topic 606, Revenue from Contracts with Customers , and supersede the revenue recognition requirements in Topic 605, Revenue Recognition , including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, a company should apply a five step approach to revenue recognition. For public business entities, this ASU is effective for annual reporting periods, including interim periods, beginning after December 15, 2017. For non-public business entities, this ASU is effective for annual reporting periods beginning after December 31, 2018, and interim periods within fiscal years beginning after December 15, 2019. The Bank's primary source of revenue is interest income on financial assets and income from mortgage banking activities, which are explicitly excluded from the scope of the new guidance. As a result, adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. However, the Company will continue to monitor developments and additional guidance up to the effective date of these amendments.

BUSINESS COMBINATION

BUSINESS COMBINATION	9 Months Ended
	Sep. 30, 2018
BUSINESS COMBINATION
BUSINESS COMBINATION	2. On October 5, 2018, the Company completed its previously announced acquisition of Coastway Bancorp, Inc. (“Coastway”) the holding company of Coastway Community Bank in an all cash transaction valued at approximately $125.6 million.

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 2018
SECURITIES
SECURITIES	3. The amortized cost and fair value of securities with gross unrealized gains and losses is as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (in thousands) September 30, 2018: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 22,997 $ — $ 949 $ 22,048 U.S. government-sponsored residential mortgage-backed securities 94,229 — 2,943 91,286 U.S. government-sponsored collateralized mortgage obligations 32,535 — 886 31,649 SBA asset-backed securities 48,373 — 1,509 46,864 Total securities available for sale $ 198,134 $ — $ 6,287 $ 191,847 Securities held to maturity U.S. government-sponsored residential mortgage-backed securities $ 15,572 $ 69 $ 649 $ 14,992 U.S. government-sponsored collateralized mortgage obligations 1,790 — 10 1,780 SBA asset-backed securities 5,819 — 166 5,653 Municipal bonds 24,190 450 — 24,640 Total securities held to maturity $ 47,371 $ 519 $ 825 $ 47,065 December 31, 2017: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 17,985 $ — $ 178 $ 17,807 U.S. government-sponsored residential mortgage-backed securities 74,368 132 630 73,870 U.S. government-sponsored collateralized mortgage obligations 36,753 35 106 36,682 SBA asset-backed securities 42,558 102 166 42,494 Total securities available for sale $ 171,664 $ 269 $ 1,080 $ 170,853 Securities held to maturity U.S. government-sponsored residential mortgage-backed securities $ 17,452 $ 97 $ 214 $ 17,335 U.S. government-sponsored collateralized mortgage obligations 2,042 54 — 2,096 SBA asset-backed securities 2,991 — 14 2,977 Municipal bonds 24,384 882 — 25,266 Total securities held to maturity $ 46,869 $ 1,033 $ 228 $ 47,674 There were no securities pledged as collateral as of September 30, 2018 and December 31, 2017. The amortized cost and fair value of debt securities by contractual maturity at September 30, 2018 is as follows: Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) After 5 years through 10 years $ 22,997 $ 22,048 $ 5,411 $ 5,472 Over 10 years — — 18,779 19,168 22,997 22,048 24,190 24,640 U.S. government-sponsored residential mortgage-backed securities 94,229 91,286 15,572 14,992 U.S. government-sponsored collateralized mortgage obligations 32,535 31,649 1,790 1,780 SBA asset-backed securities 48,373 46,864 5,819 5,653 Total $ 198,134 $ 191,847 $ 47,371 $ 47,065 U.S. government-sponsored residential mortgage-backed securities, collateralized mortgage obligations and securities whose underlying assets are loans from the U.S. Small Business Administration (“SBA asset-backed securities”) have stated maturities of four to 29 years; however, it is expected that such securities will have shorter actual lives due to prepayments. There were no sales or calls of securities during the three and nine months ended September 30, 2018 and the three months ended September 30, 2017. There were no sales of securities and proceeds of $400,000 from a call of a held to maturity security during the nine months ended September 30, 2017. Information pertaining to securities with gross unrealized losses at September 30, 2018 and December 31, 2017 aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: Less Than Twelve Months Twelve Months and Over Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (in thousands) September 30, 2018: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 336 $ 12,675 $ 613 $ 9,373 U.S. government-sponsored residential mortgage-backed securities 1,605 58,666 1,338 32,621 U.S. government-sponsored collateralized mortgage obligations 602 22,854 284 8,794 SBA asset-backed securities 593 25,259 916 21,605 $ 3,136 $ 119,454 $ 3,151 $ 72,393 Securities held to maturity U.S. government-sponsored residential mortgage-backed securities $ — $ — $ 649 $ 13,206 U.S. government-sponsored collateralized mortgage obligations 10 1,780 — — SBA asset-backed securities 44 2,899 122 2,755 $ 54 $ 4,679 $ 771 $ 15,961 December 31, 2017: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 20 $ 4,980 $ 158 $ 9,827 U.S. government-sponsored residential mortgage-backed securities 155 31,684 475 26,123 U.S. government-sponsored collateralized mortgage obligations 53 10,886 53 2,870 SBA asset-backed securities 95 24,205 71 4,730 $ 323 $ 71,755 $ 757 $ 43,550 Securities held to maturity U.S. government-sponsored residential mortgage-backed securities $ 91 $ 8,211 $ 123 $ 6,970 SBA asset-backed securities 14 2,977 — — $ 105 $ 11,188 $ 123 $ 6,970 Management evaluates securities for other-than-temporary impairment (“OTTI”) at each reporting period, and more frequently when economic or market concerns warrant such evaluation. At September 30, 2018, 71 debt securities with an amortized cost of $219.6 million have unrealized losses with aggregate depreciation of 3.24% from the Company’s amortized cost basis. The unrealized losses on the Company’s securities were primarily caused by changes in interest rates. All of these investments are guaranteed by government and government-sponsored enterprises. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the decline in fair value is attributable to changes in interest rates and not to credit quality, and because the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be OTTI at September 30, 2018.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2018
LOANS
LOANS	4. A summary of the balances of loans follows: September 30, December 31, 2018 2017 (in thousands) Residential real estate: One- to four-family $ 563,944 $ 677,837 Second mortgages and equity lines of credit 88,965 89,080 Residential construction 8,846 11,904 Commercial real estate 788,561 655,419 Commercial construction 129,796 116,739 Total mortgage loans on real estate 1,580,112 1,550,979 Commercial 139,616 109,523 Consumer loans: Auto 486,068 513,728 Personal 12,349 14,092 Total consumer loans 498,417 527,820 Total loans 2,218,145 2,188,322 Allowance for loan losses (19,440) (18,489) Net deferred loan costs 5,677 6,645 Loans, net $ 2,204,382 $ 2,176,478 The Company transferred residential real estate mortgages of $105.4 million to loans held for sale at September 30, 2018 and recorded fair value adjustment gain of $472,000. The Company did not sell residential portfolio loans during the three or nine months ended September 30, 2017. The Company did not sell indirect auto loans during the three and nine months ended September 30, 2018 or the three months ended September 30, 2017. In the nine months ended September 30, 2017, the Company sold indirect auto loans of $5.0 million. The loans were classified as loans held for sale at March 31, 2017 and a gain of $78,000 was recorded in the first quarter. The unpaid principal balance of indirect auto loans serviced for others was $14.6 million and $22.4 million at September 30, 2018 and December 31, 2017, respectively. The Company has transferred a portion of its originated commercial real estate loans to participating lenders. The amounts transferred have been accounted for as sales and are therefore not included in the Company’s accompanying unaudited interim Consolidated Balance Sheets. The Company and participating lenders share ratably in cash flows and any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The Company continues to service the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments to participating lenders and disburses required escrow funds to relevant parties. At September 30, 2018 and December 31, 2017, the Company was servicing loans for participants aggregating $119.8 million and $85.2 million, respectively. The following is the activity in the allowance for loan losses for the three and nine months ended September 30, 2018 and 2017: Mortgage Loans Commercial Commercial Residential Real Estate Construction Commercial Consumer Unallocated Total (in thousands) Balance at June 30, 2018 $ 3,461 $ 8,672 $ 2,367 $ 1,969 $ 1,219 $ 1,556 $ 19,244 Provision (credit) for loan losses (262) 760 (355) 495 102 (108) 632 Charge-offs (50) — — (255) (209) — (514) Recoveries 10 — — 1 67 — 78 Balance at September 30, 2018 $ 3,159 $ 9,432 $ 2,012 $ 2,210 $ 1,179 $ 1,448 $ 19,440 Balance at June 30, 2017 $ 4,434 $ 7,075 $ 936 $ 2,114 $ 1,033 $ 1,589 $ 17,181 Provision (credit) for loan losses (27) 372 162 346 160 (92) 921 Charge-offs — — — — (230) — (230) Recoveries 10 — — — 51 — 61 Balance at September 30, 2017 $ 4,417 $ 7,447 $ 1,098 $ 2,460 $ 1,014 $ 1,497 $ 17,933 Mortgage Loans Commercial Commercial Residential Real Estate Construction Commercial Consumer Unallocated Total (in thousands) Balance at December 31, 2017 $ 4,000 $ 7,835 $ 1,810 $ 2,254 $ 1,000 $ 1,590 $ 18,489 Provision (credit) for loan losses (828) 1,597 202 944 553 (142) 2,326 Charge-offs (50) — — (990) (551) — (1,591) Recoveries 37 — — 2 177 — 216 Balance at September 30, 2018 $ 3,159 $ 9,432 $ 2,012 $ 2,210 $ 1,179 $ 1,448 $ 19,440 Balance at December 31, 2016 $ 4,963 $ 7,150 $ 924 $ 1,920 $ 780 $ 1,231 $ 16,968 Provision (credit) for loan losses (559) 297 174 658 820 266 1,656 Charge-offs (144) — — (134) (790) — (1,068) Recoveries 157 — — 16 204 — 377 Balance at September 30, 2017 $ 4,417 $ 7,447 $ 1,098 $ 2,460 $ 1,014 $ 1,497 $ 17,933 Allocation of the allowance to loan segments at September 30, 2018 and December 31, 2017 follows: Mortgage Loans Commercial Commercial Residential Real Estate Construction Commercial Consumer Unallocated Total (in thousands) September 30, 2018: Loans: Impaired loans $ 31,673 $ 391 $ — $ 1,805 $ — $ — $ 33,869 Non-impaired loans 630,082 788,170 129,796 137,811 498,417 — 2,184,276 Total loans $ 661,755 $ 788,561 $ 129,796 $ 139,616 $ 498,417 $ — $ 2,218,145 Allowance for loan losses: Impaired loans $ 1,170 $ — $ — $ — $ — $ — $ 1,170 Non-impaired loans 1,989 9,432 2,012 2,210 1,179 1,448 18,270 Total allowance for loan losses $ 3,159 $ 9,432 $ 2,012 $ 2,210 $ 1,179 $ 1,448 $ 19,440 December 31, 2017: Loans: Impaired loans $ 34,440 $ 312 $ - $ 3,069 $ — $ — $ 37,821 Non-impaired loans 744,381 655,107 116,739 106,454 527,820 — 2,150,501 Total loans $ 778,821 $ 655,419 $ 116,739 $ 109,523 $ 527,820 $ — $ 2,188,322 Allowance for loan losses: Impaired loans $ 1,242 $ — $ — $ 739 $ — $ — $ 1,981 Non-impaired loans 2,758 7,835 1,810 1,515 1,000 1,590 16,508 Total allowance for loan losses $ 4,000 $ 7,835 $ 1,810 $ 2,254 $ 1,000 $ 1,590 $ 18,489 The following is a summary of past due and non-accrual loans at September 30, 2018 and December 31, 2017: 90 Days 30-59 Days 60-89 Days or More Total Loans on Past Due Past Due Past Due Past Due Non-accrual (in thousands) September 30, 2018 Residential real estate: One- to four-family $ 3,835 $ — $ 5,892 $ 9,727 $ 12,516 Second mortgages and equity lines of credit 218 214 298 730 914 Commercial real estate — — 391 391 391 Commercial 445 5 2,655 3,105 2,655 Consumer: Auto 2,182 535 192 2,909 250 Personal 25 51 8 84 9 Total $ 6,705 $ 805 $ 9,436 $ 16,946 $ 16,735 December 31, 2017 Residential real estate: One- to four-family $ 3,269 $ 1,116 $ 5,267 $ 9,652 $ 13,308 Second mortgages and equity lines of credit 256 110 296 662 876 Commercial real estate — 312 — 312 312 Commercial construction — — — — 130 Commercial 2 — 260 262 3,038 Consumer: Auto 1,641 342 165 2,148 162 Personal 32 22 18 72 29 Total $ 5,200 $ 1,902 $ 6,006 $ 13,108 $ 17,855 At September 30, 2018 and December 31, 2017, there were no loans past due 90 days or more and still accruing. The following information pertains to impaired loans: September 30, 2018 December 31, 2017 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (in thousands) Impaired loans without a valuation allowance: Residential $ 12,287 $ 12,807 $ — $ 12,561 $ 13,171 $ — Commercial real estate 391 391 — 312 312 — Commercial construction — — — 130 130 — Commercial 1,805 2,591 — — — — Total $ 14,483 $ 15,789 $ — $ 13,003 $ 13,613 $ — Impaired loans with a valuation allowance: Residential $ 19,386 $ 20,001 $ 1,169 $ 21,749 $ 22,457 $ 1,242 Commercial — — — 3,069 3,153 739 Total $ 19,386 $ 20,001 $ 1,169 $ 24,818 $ 25,610 $ 1,981 Three Months Ended September 30, 2018 2017 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (in thousands) Residential $ 31,712 $ 441 $ 340 $ 38,114 $ 494 $ 384 Commercial real estate 391 — — — — — Commercial construction — — — 131 2 2 Commercial 1,933 — — 3,896 5 4 Total $ 34,036 $ 441 $ 340 $ 42,141 $ 501 $ 390 Nine Months Ended September 30, 2018 2017 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (in thousands) Residential $ 32,552 $ 1,427 $ 1,129 $ 40,087 $ 1,721 $ 1,382 Commercial real estate 351 — — — — — Commercial construction 33 — — 132 10 10 Commercial 2,409 8 5 3,770 62 61 Total $ 35,345 $ 1,435 $ 1,134 $ 43,989 $ 1,793 $ 1,453 Interest income recognized and interest income recognized on a cash basis in the table above represents interest income for the three and nine months ended September 30, 2018 and 2017, not for the time period designated as impaired. No additional funds are committed to be advanced in connection with impaired loans. There were no material TDR loan modifications for the three and nine months ended September 30, 2018. For the three and nine months ended September 30, 2017, there were two commercial TDR loan modifications totaling $1.6 million. The recorded investment in TDRs was $22.8 million and $26.4 million at September 30, 2018 and December 31, 2017, respectively. Of these loans, $4.6 million and $6.1 million were on non-accrual at September 30, 2018 and December 31, 2017, respectively. All TDR loans are considered impaired and management performs a discounted cash flow calculation to determine the amount of impairment reserve required on each loan. TDR loans which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In either case, any reserve required is recorded as part of the allowance for loan losses. During the three and nine months ended September 30, 2018 and 2017, there were no payment defaults on TDRs. Credit Quality Information The Company uses a ten grade internal loan rating system for commercial real estate, commercial construction and commercial loans, as follows: Loans rated 1 – 6 are considered “pass” rated loans with low to average risk. Loans rated 7 are considered “special mention.” These loans are starting to show signs of potential weakness and are being closely monitored by management. Loans rated 8 are considered “substandard.” Generally, a loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected. Loans rated 9 are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Loans rated 10 are considered “uncollectible” (loss), and of such little value that their continuance as loans is not warranted. Loans not rated consist primarily of residential construction loans and certain smaller balance commercial real estate and commercial loans that are managed by exception. On an annual basis, or more often if needed, the Company formally reviews on a risk adjusted basis, the ratings on all commercial real estate, construction and commercial loans. Semi-annually, the Company engages an independent third party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. On a monthly basis, the Company reviews the residential construction, residential real estate and consumer installment portfolios for credit quality primarily through the use of delinquency reports. The following table presents the Company’s loans by risk rating at September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Commercial Commercial Commercial Commercial Real Estate Commercial Construction Real Estate Commercial Construction (in thousands) Loans rated 1 - 6 $ 779,886 $ 134,212 $ 129,796 $ 652,625 $ 105,888 $ 116,739 Loans rated 7 6,222 3,599 — — 818 — Loans rated 8 — — — — 1,990 — Loans rated 9 — 1,805 — — 827 — Loans rated 10 — — — — — — Loans not rated 2,453 — — 2,794 — — $ 788,561 $ 139,616 $ 129,796 $ 655,419 $ 109,523 $ 116,739

MORTGAGE LOAN SERVICING

MORTGAGE LOAN SERVICING	9 Months Ended
	Sep. 30, 2018
MORTGAGE LOAN SERVICING
MORTGAGE LOAN SERVICING	5. The Company sells residential mortgages to government-sponsored entities and other parties. The Company retains no beneficial interests in these loans, but may retain the servicing rights of the loans sold. Mortgage loans serviced for others are not included in the accompanying unaudited interim Consolidated Balance Sheets. The risks inherent in mortgage servicing rights (“MSRs”) relate primarily to changes in prepayments that primarily result from shifts in mortgage interest rates. The unpaid principal balance of mortgage loans serviced for others was $1.91 billion and $1.93 billion as of September 30, 2018 and December 31, 2017, respectively. The Company accounts for MSRs at fair value. The Company obtains valuations from independent third parties to determine the fair value of MSRs. Key assumptions used in the estimation of fair value include prepayment speeds, discount rates, default rates, cost to service, and contractual servicing fees. At September 30, 2018 and December 31, 2017, the following weighted average assumptions were used in the calculation of fair value of MSRs: September 30, December 31, 2018 2017 Prepayment speed 8.60 % 9.79 % Discount rate 9.28 9.26 Default rate 2.02 2.23 The following summarizes changes to MSRs for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Balance, beginning of period $ 22,832 $ 20,313 $ 21,092 $ 20,333 Additions 1,294 551 2,318 2,025 Changes in fair value due to : Reductions from loans paid off during the period (521) (415) (1,362) (1,138) Changes in valuation inputs or assumptions 143 (73) 1,700 (844) Balance, end of period $ 23,748 $ 20,376 $ 23,748 $ 20,376 Contractually specified servicing fees included in other mortgage banking income amounted to $1.3 million and $4.0 million for the three and nine months ended September 30, 2018, respectively, and $1.3 million and $3.9 million for the three and nine months ended September 30, 2017, respectively.

DEPOSITS

DEPOSITS	9 Months Ended
	Sep. 30, 2018
DEPOSITS
DEPOSITS	6. A summary of deposit balances, by type, is as follows: September 30, December 31, 2018 2017 (in thousands) NOW and demand deposit accounts $ 432,628 $ 395,153 Regular savings and club accounts 327,030 356,300 Money market deposit accounts 674,657 721,021 Total non-certificate accounts 1,434,315 1,472,474 Term certificate accounts greater than $250,000 151,639 78,165 Term certificate accounts less than or equal to $250,000 532,856 389,609 Brokered deposits 66,831 73,490 Total certificate accounts 751,326 541,264 Total deposits $ 2,185,641 $ 2,013,738 The Company has established a relationship to participate in a reciprocal deposit program with other financial institutions. The reciprocal deposit program provides access to FDIC-insured deposit products in aggregate amounts exceeding the current limits for depositors. At September 30, 2018 and December 31, 2017, total reciprocal deposits were $108.6 million and $174.2 million, respectively, consisting primarily of money market accounts. A summary of certificate accounts by maturity at September 30, 2018 is as follows: Weighted Average Amount Rate (dollars in thousands) Within 1 year $ 584,792 2.02 % Over 1 year to 2 years 110,484 2.04 Over 2 years to 3 years 40,150 1.77 Over 3 years to 4 years 14,630 1.69 Over 4 years 1,270 2.08 $ 751,326 2.00 %

FHLB BORROWINGS

FHLB BORROWINGS	9 Months Ended
	Sep. 30, 2018
FHLB BORROWINGS
FHLB BORROWINGS	7. Borrowed funds at September 30, 2018 and December 31, 2017 consist of Federal Home Loan Bank (“FHLB”) advances. Short-term advances were $25.0 million with a weighted average rate of 2.37% at September 30, 2018. Short-term advances were $44.0 million with a weighted average rate of 1.50% at December 31, 2017. Long-term advances are summarized by maturity date below. September 30, 2018 December 31, 2017 Weighted Weighted Redeemable Average Redeemable Average Amount at Call Date (1) Rate (2) Amount at Call Date (1) Rate (2) (dollars in thousands) Year ending December 31: 2018 $ 30,000 $ 35,000 1.44 % $ 111,250 $ 111,250 1.47 % 2019 60,000 90,000 1.66 60,000 60,000 1.66 2020 50,000 60,000 1.84 50,000 50,000 1.84 2021 40,000 20,000 1.81 20,000 20,000 1.79 2022 5,000 — 0.96 — — — 2023 and thereafter* 21,187 1,187 1.03 5,115 5,115 0.65 $ 206,187 $ 206,187 1.62 % $ 246,365 $ 246,365 1.60 % * Includes an amortizing advance requiring monthly principal and interest payments of $1,000. (1) Callable FHLB advances are shown in the respective periods assuming that the callable debt is redeemed at the call date, while all other advances are shown in the periods corresponding to their scheduled maturity date. There were no callable advances at December 31, 2017. (2) Weighted average rates are based on scheduled maturity dates. The FHLB advances are secured by a blanket security agreement on qualified collateral defined primarily as 81% of the carrying value of first mortgage loans on residential property. The Company also has an available line of credit with the Federal Reserve Bank of Boston secured by 75% of the carrying value of indirect auto loans with principal balances amounting to $84.6 million and $136.1 million, respectively, of which no amount was outstanding at September 30, 2018 and December 31, 2017, respectively.

SUBORDINATED DEBENTURES

SUBORDINATED DEBENTURES	9 Months Ended
	Sep. 30, 2018
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES	8. On August 30, 2018, the Company issued $35.0 million in fixed-to-floating rate subordinated notes due 2028 (the “Notes”) in a private placement transaction to institutional accredited investors. The Notes bear interest at annual fixed rate of 5.625% until September 1, 2023 at which time the interest rate resets quarterly to an interest rate per annum equal to the three–month LIBOR plus 278 basis points. Interest is payable semi-annually on March 1 and September 1 each year through September 1, 2023 and quarterly thereafter. The Notes can be redeemed partially or in whole, prior to the maturity date beginning September 1, 2023 and on any scheduled interest payment date thereafter, at par. The Notes are carried on the consolidated balance sheet net of issuance costs of $1.1 million, which are being amortized over the period to maturity date using the interest method. At September 30, 2018, the Notes qualify as Tier 2 Capital for regulatory capital purposes.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2018
INCOME TAXES
INCOME TAXES	9. For the three and nine months ended September 30, 2018, the Company recorded an expense of $818,000 and $2.6 million, respectively, representing an effective tax rate of 12.13% and 18.59%, respectively. For the three and nine months ended September 30, 2017, the Company recorded an income tax provision of $1.7 million and $5.1 million, respectively, representing an effective tax rate of 37.45% and 36.88%, respectively. The decrease in the effective tax rate in 2018 is due primarily to the lower tax rates established by the Tax Cuts and Jobs Act of 2017 that took effect on January 1, 2018 and recognition in 2018 on an $826,000 tax benefit relating to a tax refund for the tax year 2014.

OTHER COMMITMENTS AND CONTINGEN

OTHER COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2018
OTHER COMMITMENTS AND CONTINGENCIES
OTHER COMMITMENTS AND CONTINGENCIES	10. Loan Commitments The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and advance funds on various lines of credit. Those commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the accompanying unaudited interim Consolidated Financial Statements. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. The following off-balance sheet financial instruments were outstanding at September 30, 2018 and December 31, 2017. The contract amounts represent credit risk. September 30, December 31, 2018 2017 (in thousands) Commitments to grant loans $ 44,106 $ 86,790 Unadvanced funds on home equity lines of credit 78,988 77,117 Unadvanced funds on revolving lines of credit 102,698 71,151 Unadvanced funds on construction loans 134,126 144,918 Commitments to extend credit and unadvanced portion of construction loans are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Commitments to grant loans generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for unadvanced funds on construction loans, home equity and revolving lines of credit may expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. Commitments to grant loans, and unadvanced construction loans and home equity lines of credit are collateralized by real estate, while revolving lines of credit are unsecured.

DERIVATIVES

DERIVATIVES	9 Months Ended
	Sep. 30, 2018
DERIVATIVES
DERIVATIVES	11. The Company is party to a variety of derivative transactions, including derivative loan commitments, forward loan sale commitments and interest rate swap contracts. The Company enters into derivative contracts in order to meet the financing needs of its customers. The Company also enters into derivative contracts as a means of reducing its interest rate risk and market risk. All derivatives are recognized in the unaudited interim Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recognized in earnings. The Company did not have any fair value hedges or cash flow hedges at September 30, 2018 and December 31, 2017. Derivative Loan Commitments Mortgage loan commitments qualify as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified times in the future, with the intention that these loans will subsequently be sold in the secondary market. A mortgage loan commitment binds the Company to lend funds to a potential borrower at a specified interest rate and within a specified period of time, generally up to 60 days after inception of the rate lock. Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of a rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. Forward Loan Sale Commitments The Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. With a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor to compensate the investor for the shortfall. With a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. Interest Rate Swaps The Company enters into interest rate swap agreements that are transacted to meet the financing needs of its commercial customers. Offsetting interest rate swap agreements are simultaneously transacted with a third-party financial institution to effectively eliminate the Company’s interest rate risk associated with the customer swaps. The primary risks associated with these transactions arise from exposure to the ability of the counterparties to meet the terms of the contract. At September 30, 2018, there are no securities pledged to the third-party financial institutions to secure interest rate swap liabilities. The interest rate swap notional amount below is the aggregate notional amount of the customer swap and the offsetting third-party swap. Risk Participation Agreements The Company has entered into risk participation agreements with the correspondent institutions and shares in any interest rate swap losses incurred as a result of the commercial loan customers’ termination of a loan level interest rate swap agreement prior to maturity. The Company records these risk participation agreements at fair value. The Company’s maximum credit exposure is based on its proportionate share of the settlement amount of the referenced interest rate swap. Settlement amounts are generally calculated based on the fair value of the swap plus outstanding accrued interest receivables from the customer. The following tables present the fair values of derivative instruments in the Consolidated Balance Sheets: Assets Liabilities Balance Balance Notional Sheet Fair Sheet Fair Amount Location Value Location Value (in thousands) September 30, 2018: Derivative loan commitments $ 89,381 Other assets $ 1,280 Other liabilities $ 13 Forward loan sale commitments 92,776 Other assets 368 Other liabilities 19 Interest rate swaps 293,869 Other assets 4,741 Other liabilities 4,741 Risk participation agreements 83,987 Other assets — Other liabilities — Total $ 6,389 $ 4,773 December 31, 2017: Derivative loan commitments $ 81,604 Other assets $ 1,047 Other liabilities $ 27 Forward loan sale commitments 95,680 Other assets 46 Other liabilities 92 Interest rate swaps 246,704 Other assets 2,153 Other liabilities 2,153 Risk participation agreements 42,856 Other assets — Other liabilities — Total $ 3,246 $ 2,272 The following table presents information pertaining to the Company’s derivative instruments in the Consolidated Statements of Operations: Amount of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2018 2017 2018 2017 (in thousands) Derivative loan commitments Mortgage banking income $ (358) $ 30 $ 247 $ 430 Forward loan sale commitments Mortgage banking income 719 (80) 395 (870) Total $ 361 $ (50) $ 642 $ (440)

COMPENSATION AND BENEFIT PLANS

COMPENSATION AND BENEFIT PLANS	9 Months Ended
	Sep. 30, 2018
COMPENSATION AND BENEFIT PLANS
COMPENSATION AND BENEFIT PLANS	12. Employee Stock Ownership Plan On June 29, 2016, the Company established an ESOP to provide eligible employees the opportunity to own Company stock. The plan is a tax-qualified retirement plan for the benefit of the Company employees. The ESOP shares were purchased through a loan from the Company and as the debt is repaid, shares are released. Contributions are allocated to eligible participants on the basis of compensation, subject to federal tax limits. The unreleased shares are deducted from stockholders’ equity as unearned ESOP shares in the accompanying balance sheets. The number of shares committed to be released per year is 59,359 through 2035. The following table presents share information held by the ESOP: September 30, 2018 December 31, 2017 Allocated shares 118,719 59,359 Shares committed to be allocated 44,520 59,359 Unallocated shares 1,023,949 1,068,470 Total shares 1,187,188 1,187,188 Fair value of unallocated shares $ 19,578,000 $ 20,472,000 Total compensation expense recognized in connection with the ESOP was $283,000 and $836,000 for the three and nine months ended September 30, 2018, respectively. Total compensation expense recognized in connection with the ESOP was $275,000 and $857,000 for the three and nine months ended September 30, 2017, respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2018
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	13. Under the HarborOne Bancorp, Inc. 2017 Stock Option and Incentive Plan (the “Equity Plan”), adopted on August 9, 2017, the Company may grant options, stock appreciation rights, restricted stock, restricted units, unrestricted stock awards, cash based awards, performance share awards, and dividend equivalent rights to its directors, officers and employees. Total shares reserved for issuance at the inception of the Plan were 2,077,577. Both incentive stock options and non-qualified stock options may be granted under the Equity Plan, with the total shares reserved for options equaling 1,483,984. The exercise price of each option equals the market price of the Company’s stock on the date of grant and the maximum term of each option is ten years. The total number of shares reserved for restricted stock or restricted units is 593,593. Options and awards vest ratably over three years. The fair value of shares awarded is based on the market price at the date of grant. Expense related to options and restricted stock granted to directors is recognized as directors' fees within noninterest expense. The Company has standard form agreements used for stock option and restricted stock awards. The standard form agreements used for the Chief Executive Officer and all other executive officers have previously been disclosed in Securities and Exchange Commission filings and generally provide that: (1) any unvested options or unvested restricted stock vest upon a change in control; and, that (2) any stock options which vest pursuant to a change in control, which is an event described in the Equity Plan, will be cashed out at the difference between the acquisition price and the exercise price of the stock option. Stock Options The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions: · Volatility is based on peer group volatility due to lack of sufficient trading history for the Company. · Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term and the vesting period. · Expected dividend yield is based on the Company’s history and expectation of dividend payouts. · The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. The Company awarded 13,062 options on September 26, 2018 to a new executive. The options vest over three years. The fair value of the options were estimated with the following assumptions: Expected volatility 24 % Expected life (years) 6 Expected dividend yield — % Risk free interest rate 2.98 % Fair value per option $ A summary of the status of the Company’s stock option grants for the nine months ended September 30, 2018, is presented in the table below: Weighted Average Weighted Remaining Aggregate Stock Option Average Contractual Intrinsic Awards Exercise Price Term (years) Value Balance at January 1, 2018 (1) 883,311 $ 18.35 9.13 Granted 13,062 19.03 10.00 Forfeited or expired (30,917) 18.35 Balance at September 30, 2018 865,456 $ 18.36 8.73 $ 666,401 Exercisable at September 30, 2018 226,709 $ 18.35 8.44 $ — Unrecognized cost inclusive of directors' awards $ 2,727,000 Weighted average remaining recognition period (years) 1.88 (1) During the quarter ended September 30, 2018, the Company discovered a clerical error in the Plan documents that resulted in the number of stock options awarded in 2017 being overstated by 442,752. As a result, the beginning balance of the stock option awards outstanding in the table above have been decreased from the amount previously reported at December 31, 2017. For the three months ended September 30, 2018, a net credit to expense of $286,000 was recognized in stock-based compensation due to adjustments for the 442,752 options that were awarded erroneously due to the clerical error in the Plan document. Additionally, $223,000 of tax benefit was reversed for the three months ended September 30, 2018. For the nine months ended September 30, 2018, stock-based compensation expense applicable to the stock options was $822,000. The recognized tax benefit related to this expense for the nine months ended September 30, 2018 was $173,000, respectively. For the three and nine months ended September 30, 2017, stock-based compensation expense applicable to the stock options was $282,000 and the recognized tax benefit related to this expense was $99,000, respectively. Restricted Stock Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company. Any shares not issued because vesting requirements are not met will again be available for issuance under the plan. The fair market value of shares awarded, based on the market price at the date of grant, is unearned compensation to be amortized over the applicable vesting period. The following table presents the activity in non-vested stock awards under the Equity Plan for the nine months ended September 30, 2018: Restricted Weighted Average Stock Awards Grant Price Non-vested stock awards at January 1, 2018 541,415 $ 18.35 Vested (180,465) 18.35 Granted 4,900 19.03 Forfeited (12,367) 18.35 Non-vested stock awards at September 30, 2018 353,483 $ 18.36 Unrecognized cost inclusive of directors' awards $ 6,093,000 Weighted average remaining recognition period (years) 1.88 Total expense for the restricted stock awards was $833,000 and $2.5 million for the three and nine months ended September 30, 2018, and the recognized tax benefits related to this expense was $125,000 and $519,000, respectively. For the three and nine months ended September 30, 2017, total expense for the restricted stock awards was $417,000 and the recognized tax benefits related to this expense was $146,000, respectively.

MINIMUM REGULATORY CAPITAL REQU

MINIMUM REGULATORY CAPITAL REQUIREMENTS	9 Months Ended
	Sep. 30, 2018
MINIMUM REGULATORY CAPITAL REQUIREMENTS
MINIMUM REGULATORY CAPITAL REQUIREMENTS	14. The Company and Bank are subject to various regulatory capital requirements administered by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (the “FDIC”). Failure to meet minimum capital requirements can result in mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s Consolidated Financial Statements. Under the capital rules, risk-based capital ratios are calculated by dividing Tier 1, common equity Tier 1, and total risk-based capital, respectively, by risk-weighted assets. Assets and off-balance sheet credit equivalents are assigned to one of several risk-weight categories, based primarily on relative risk. The rules require banks and bank holding companies to maintain a minimum common equity Tier 1 capital ratio of 4.5%, a minimum Tier 1 capital ratio of 6.0% and a total capital ratio of 8.0%. In addition, a Tier 1 leverage ratio of 4.0% is required. Additionally, subject to a transition schedule, the capital rules require a bank holding company to establish a capital conservation buffer of common equity Tier 1 capital in an amount above the minimum risk-based capital requirements equal to 2.5% of total risk weighted assets, or face restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases. Under the FDIC’s prompt corrective action rules, an insured state nonmember bank is considered “well capitalized” if its capital ratios meet or exceed the ratios as set forth in the following table and is not subject to any written agreement, order, capital directive, or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. The Bank must meet well capitalized requirements under prompt corrective action provisions. Prompt corrective action provisions are not applicable to bank holding companies. A bank holding company is considered “well capitalized” if the bank holding company (i) has a total risk-based capital ratio of at least 10.0%, (ii) has a Tier 1 risk-based capital ratio of at least 6.0%, and (iii) is not subject to any written agreement order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. At September 30, 2018, the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and their regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. The capital levels of both the Company and the Bank at September 30, 2018 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 1.875%. The Company’s and the Bank’s actual regulatory capital ratios as of September 30, 2018 and December 31, 2017 are presented in the table below. Minimum Required to be Considered "Well Capitalized" Minimum Required for Under Prompt Corrective Actual Capital Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) HarborOne Bancorp, Inc. September 30, 2018 Common equity Tier 1 capital to risk-weighted assets $ 344,495 14.8 % $ 105,041 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 344,495 14.8 140,054 6.0 N/A N/A Total capital to risk-weighted assets 363,934 15.6 186,739 8.0 N/A N/A Tier 1 capital to average assets 344,495 12.2 112,624 4.0 N/A N/A December 31, 2017 Common equity Tier 1 capital to risk-weighted assets $ 330,514 15.1 % $ 98,292 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 330,514 15.1 131,056 6.0 N/A N/A Total capital to risk-weighted assets 349,002 16.0 174,741 8.0 N/A N/A Tier 1 capital to average assets 330,514 12.5 105,423 4.0 N/A N/A HarborOne Bank September 30, 2018 Common equity Tier 1 capital to risk-weighted assets $ 264,502 11.3 % $ 104,987 4.5 % $ 151,649 6.5 % Tier 1 capital to risk-weighted assets 264,502 11.3 139,983 6.0 186,644 8.0 Total capital to risk-weighted assets 283,942 12.2 186,644 8.0 233,306 10.0 Tier 1 capital to average assets 264,502 9.4 112,428 4.0 140,535 5.0 December 31, 2017 Common equity Tier 1 capital to risk-weighted assets $ 249,532 11.4 % $ 98,266 4.5 % $ 141,939 6.5 % Tier 1 capital to risk-weighted assets 249,532 11.4 131,021 6.0 174,695 8.0 Total capital to risk-weighted assets 268,021 12.3 174,695 8.0 218,368 10.0 Tier 1 capital to average assets 249,532 9.6 104,264 4.0 130,329 5.0

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 30, 2018
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS)	15. COMPREHENSIVE INCOME (LOSS) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the stockholders’ equity section of the Consolidated Balance Sheets, such items, along with net income, are components of comprehensive income (loss). The components of accumulated other comprehensive loss, included in stockholders’ equity, are as follows: September 30, December 31, 2018 2017 (in thousands) Securities available for sale: Net unrealized loss $ (6,287) $ (811) Related tax effect 1,383 283 Total accumulated other comprehensive loss $ (4,904) $ (528) The following tables present changes in accumulated other comprehensive loss by component for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 2017 Unrealized Gains Unrealized Gains and Losses on and Losses on Director's Available-for-Sale Available-for-Sale Retirement Securities Securities Plan Total (in thousands) Balance at beginning of period $ (3,733) $ (30) $ (538) $ (568) Other comprehensive income (loss) before reclassifications (1,501) 180 — 180 Reclassification adjustment for amortization of prior service cost — — 60 60 Net current period other comprehensive income (loss) (1,501) 180 60 240 Related tax effect 330 (63) (24) (87) Balance at end of period $ (4,904) $ 87 $ (502) $ (415) Nine Months Ended September 30, 2018 2017 Unrealized Gains Unrealized Gains and Losses on and Losses on Directors' Available-for-Sale Available-for-Sale Retirement Securities Securities Plan Total (in thousands) Balance at beginning of period $ (528) $ (665) $ (625) $ (1,290) Other comprehensive income (loss) before reclassifications (5,476) 1,155 — 1,155 Stranded effect of tax rate change (104) — — — Reclassification adjustment for amortization of prior service cost — — 181 181 Net current period other comprehensive income (loss) (5,580) 1,155 181 1,336 Related tax effect 1,204 (403) (58) (461) Balance at end of period $ (4,904) $ 87 $ (502) $ (415) The directors’ retirement plan was frozen effective December 31, 2017.

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	9 Months Ended
	Sep. 30, 2018
FAIR VALUE OF ASSETS AND LIABILITIES
FAIR VALUE OF ASSETS AND LIABILITIES	16. Determination of Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of an asset or liability is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various assets or liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. The following methods and assumptions were used by the Company in estimating fair value disclosures: Cash and cash equivalents - The carrying amounts of cash and short-term instruments approximate fair values based on the short-term nature of the assets. Securities - All fair value measurements are obtained from a third-party pricing service and are not adjusted by management. Securities measured at fair value in Level 1 are based on quoted market prices in an active exchange market. Securities measured at fair value in Level 2 are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data. FHLB stock - The fair value of Federal Home Loan Bank stock is equal to cost based on redemption provisions. Loans held for sale - Fair values are based on prevailing market prices for similar commitments. At September 30, 2018 and December 31, 2017, there were no loans held for sale that were greater than ninety days past due. The following table provides the fair value and contractual principal balance outstanding of loans held for sale accounted for under the fair value option: September 30, December 31, 2018 2017 (in thousands) Loans held for sale, fair value $ 155,268 $ 59,460 Loans held for sale, contractual principal outstanding 153,927 57,575 Fair value less unpaid principal balance $ 1,341 $ 1,885 Loans - Fair values for mortgage loans and other loans are estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Retirement plan annuities - The carrying value of the annuities are based on their contract values which approximate fair value. MSRs - Fair value is based on a third party valuation model that calculates the present value of estimated future net servicing income and includes observable market data such as prepayment speeds and default and loss rates. Deposits and mortgagors’ escrow accounts - The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) and mortgagors’ escrow accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Borrowed funds - The fair values of borrowed funds are estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements. Accrued interest - The carrying amounts of accrued interest approximate fair value. Forward loan sale commitments and derivative loan commitments - Forward loan sale commitments and derivative loan commitments are based on fair values of the underlying mortgage loans and the probability of such commitments being exercised. The assumptions for pull-through rates are derived from internal data and adjusted using management judgment. Derivative loan commitments include the value of servicing rights and non-refundable costs of originating the loan based on the Company’s internal cost analysis that is not observable. At both September 30, 2018 and December 31, 2017, the weighted average pull-through rate for derivative loan commitments was 87%. Interest rate swaps and risk participation agreements - The Company’s interest rate swaps are traded in over-the-counter markets where quoted market prices are not readily available. For these interest rate derivatives, fair value is determined by a third party utilizing models that use primarily market observable inputs, such as swap rates and yield curves. The pricing models used to value interest rate swaps calculate the sum of each instrument’s fixed and variable cash flows, which are then discounted using an appropriate yield curve to arrive at the fair value of each swap. The pricing models do not contain a high level of subjectivity as the methodologies used do not require significant judgment. The Company incorporates credit valuation analysis for counterparty nonperformance risk in the fair value measurement, including the impact of netting applicable credit enhancements such as available collateral. Off-balance sheet credit-related instruments - Fair values for off-balance sheet, credit related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of off-balance sheet instruments are immaterial. Fair Value Hierarchy The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include assets and liabilities whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as assets and liabilities for which the determination of fair value requires significant management judgment or estimation. Transfers between levels are recognized at the end of the reporting period, if applicable. There were no transfers during the periods presented. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below: Total Level 1 Level 2 Level 3 Fair Value (in thousands) September 30, 2018 Assets Securities available for sale $ — $ 191,847 $ — $ 191,847 Loans held for sale — 155,268 — 155,268 Mortgage servicing rights — 23,748 — 23,748 Derivative loan commitments — — 1,280 1,280 Forward loan sale commitments — — 368 368 Interest rate swaps — 4,741 — 4,741 $ — $ 375,604 $ 1,648 $ 377,252 Liabilities Derivative loan commitments $ — $ — $ 13 $ 13 Forward loan sale commitments — — 19 19 Interest rate swaps — 4,741 — 4,741 $ — $ 4,741 $ 32 $ 4,773 December 31, 2017 Assets Securities available for sale $ — $ 170,853 $ — $ 170,853 Loans held for sale — 59,460 — 59,460 Mortgage servicing rights — 21,092 — 21,092 Derivative loan commitments — — 1,047 1,047 Forward loan sale commitments — — 46 46 Interest rate swaps — 2,153 — 2,153 $ — $ 253,558 $ 1,093 $ 254,651 Liabilities Derivative loan commitments $ — $ — $ 27 $ 27 Forward loan sale commitments — — 92 92 Interest rate swaps — 2,153 — 2,153 $ — $ 2,153 $ 119 $ 2,272 The table below presents, for the three and nine months ended September 30, 2018 and 2017, the changes in Level 3 assets and liabilities that are measured at fair value on a recurring basis. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Assets: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ 1,755 $ 1,994 $ 1,093 $ 2,722 Total gains (losses) included in net income (1) (107) (67) 555 (795) Balance at end of period $ 1,648 $ 1,927 $ 1,648 $ 1,927 Changes in unrealized gains relating to instruments at period end $ 1,648 $ 1,927 $ 1,648 $ 1,927 Liabilities: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ (500) $ (238) $ (119) $ (576) Total gains (losses) included in net income (1) 468 17 87 355 Balance at end of period $ (32) $ (221) $ (32) $ (221) Changes in unrealized losses relating to instruments at period end $ (32) $ (221) $ (32) $ (221) (1) Included in mortgage banking income on the Consolidated Statements of Net Income. Assets Measured at Fair Value on a Non-recurring Basis The Company may also be required, from time to time, to measure certain other financial assets on a nonrecurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2018 and December 31, 2017. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets. September 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Impaired loans $ — $ — $ 2,371 $ — $ — $ 3,277 Other real estate owned and repossessed assets — — 672 — — 762 $ — $ — $ 3,043 $ — $ — $ 4,039 Losses in the following table represent the amount of the fair value adjustments recorded during the period on the carrying value of the assets held at September 30, 2018 and December 31, 2017, respectively. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Impaired loans $ — $ 444 $ 34 $ 525 Other real estate owned and repossessed assets — 11 5 58 $ — $ 455 $ 39 $ 583 Losses applicable to write-downs of impaired loans and other real estate owned and repossessed assets are based on the appraised value of the underlying collateral less estimated costs to sell. The losses on impaired loans are not recorded directly as an adjustment to current earnings, but rather as a component in determining the allowance for loan losses. The losses on other real estate owned and repossessed assets represent adjustments in valuation recorded during the time period indicated and not for losses incurred on sales. Appraised values are typically based on a blend of (a) an income approach using observable cash flows to measure fair value, and (b) a market approach using observable market comparables. These appraised values may be discounted based on management’s historical knowledge, expertise or changes in market conditions from time of valuation. Summary of Fair Values of Financial Instruments The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments are as follows. Certain financial instruments and all nonfinancial instruments are exempt from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. September 30, 2018 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 95,097 $ 95,097 $ — $ — $ 95,097 Securities available for sale 191,847 — 191,847 — 191,847 Securities held to maturity 47,371 — 47,065 — 47,065 Federal Home Loan Bank stock 13,263 — — 13,263 13,263 Loans held for sale 155,268 — 155,268 — 155,268 Loans, net 2,204,382 — — 2,177,544 2,177,544 Retirement plan annuities 12,830 — — 12,830 12,830 Mortgage servicing rights 23,748 — 23,748 — 23,748 Accrued interest receivable 7,452 — 7,452 — 7,452 Financial liabilities: Deposits 2,185,641 — — 2,180,590 2,180,590 Borrowed funds 265,042 — 228,632 — 228,632 Mortgagors' escrow accounts 4,655 — — 4,655 4,655 Accrued interest payable 622 — 622 — 622 Derivative loan commitments: Assets 1,280 — — 1,280 1,280 Liabilities 13 — — 13 13 Interest rate swap agreements: Assets 4,741 — 4,741 — 4,741 Liabilities 4,741 — 4,741 — 4,741 Forward loan sale commitments: Assets 368 — — 368 368 Liabilities 19 — — 19 19 December 31, 2017 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 80,791 $ 80,791 $ — $ — $ 80,791 Securities available for sale 170,583 — 170,853 — 170,853 Securities held to maturity 46,869 — 47,674 — 47,674 Federal Home Loan Bank stock 15,532 — — 15,532 15,532 Mortgage loans held for sale 59,460 — 59,460 — 59,460 Loans, net 2,176,478 — — 2,175,423 2,175,423 Retirement plan annuities 12,498 — — 12,498 12,498 Mortgage servicing rights 21,092 — 21,092 — 21,092 Accrued interest receivable 6,545 — 6,545 — 6,545 Financial liabilities: Deposits 2,013,738 — — 2,010,052 2,010,052 Borrowed funds 290,365 — 288,939 — 288,939 Mortgagors' escrow accounts 5,221 — — 5,221 5,221 Accrued interest payable 518 — 518 — 518 Derivative loan commitments: Assets 1,047 — — 1,047 1,047 Liabilities 27 — — 27 27 Interest rate swap agreements: Assets 2,153 — 2,153 — 2,153 Liabilities 2,153 — 2,153 — 2,153 Forward loan sale commitments: Assets 46 — — 46 46 Liabilities 92 — — 92 92

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2018
EARNINGS PER SHARE (“EPS”)
EARNINGS PER SHARE (“EPS”)	17. Basic EPS represents net income attributable to common shareholders divided by the weighted-average number of common shares outstanding during the period. Unvested restricted shares are participating securities and included in the computation of basic earnings per share. Diluted EPS is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding, plus the effect of potential dilutive common stock equivalents outstanding during the period. Unallocated ESOP shares are not deemed outstanding for EPS calculations. Three Months Ended September 30, 2018 2017 Net income applicable to common stock (in thousands) $ 5,928 $ 2,838 Average number of common shares outstanding 32,604,157 32,391,588 Less: Average unallocated ESOP shares (1,028,947) (1,088,307) Average number of common shares outstanding used to calculate basic earnings per common share 31,575,210 31,303,281 Common stock equivalents 601 — Average number of common shares outstanding used to calculate diluted earnings per common share 31,575,811 31,303,281 Earnings per common share: Basic $ 0.19 $ 0.09 Diluted $ 0.19 $ 0.09 Nine Months Ended September 30, 2018 2017 Net income applicable to common stock (in thousands) $ 11,283 $ 8,786 Average number of common shares outstanding 32,618,973 32,212,107 Less: Average unallocated ESOP shares (1,044,292) (1,103,003) Average number of common shares outstanding used to calculate basic earnings per common share 31,574,681 31,109,104 Common stock equivalents 200 — Average number of common shares outstanding used to calculate diluted earnings per common share 31,574,881 31,109,104 Earnings per common share: Basic $ 0.36 $ 0.28 Diluted $ 0.36 $ 0.28 Stock options for 791,257 shares of common stock for the three and nine months ended September 30, 2018 were not considered in computing diluted earnings per share because they were antidilutive. All options were antidilutive for the 2017 periods.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2018
SEGMENT REPORTING
SEGMENT REPORTING	18. The Company has two reportable segments: HarborOne Bank and HarborOne Mortgage. Revenue from HarborOne Bank consists primarily of interest earned on loans and investment securities and service charges on deposit accounts. Revenue from HarborOne Mortgage comprises interest earned on loans and fees received as a result of the residential mortgage origination, sale and servicing process. Effective April 3, 2018, the Bank’s residential mortgage lending division was consolidated with HarborOne Mortgage. Mortgage banking income at the Bank will primarily consist of servicing fee income and changes related to previously originated mortgage servicing rights. Residential real estate portfolio loans will be originated by HarborOne Mortgage and purchased by the Bank. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Segment profit and loss is measured by net income on a legal entity basis. Intercompany transactions are eliminated in consolidation. Information about the reportable segments and reconciliation to the unaudited interim Consolidated Financial Statements at September 30, 2018 and 2017 and for the three months then ended is presented in the tables below. Three Months Ended September 30, 2018 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (In thousands) Net interest and dividend income $ 20,943 $ 308 $ (130) $ — $ 21,121 Provision for loan losses 632 — — — 632 Net interest income, after provision for loan losses 20,311 308 (130) — 20,489 Mortgage banking income: Changes in mortgage servicing rights fair value (59) (319) — — (378) Other 720 8,529 — — 9,249 Total mortgage banking income 661 8,210 — — 8,871 Other noninterest income 4,785 (16) — — 4,769 Total noninterest income 5,446 8,194 — — 13,640 Noninterest expense 18,824 8,184 375 — 27,383 Income (loss) before income taxes 6,933 318 (505) — 6,746 Provision (benefit) for income taxes 888 71 (141) — 818 Net income (loss) $ 6,045 $ 247 $ (364) $ — $ 5,928 Nine Months Ended September 30, 2018 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income $ 61,429 $ 739 $ (28) $ — $ 62,140 Provision for loan losses 2,326 — — — 2,326 Net interest income, after provision for loan losses 59,103 739 (28) — 59,814 Mortgage banking income: Changes in mortgage servicing rights fair value 60 278 — — 338 Other 1,599 22,676 — — 24,275 Total mortgage banking income 1,659 22,954 — — 24,613 Other noninterest income 12,922 11 — — 12,933 Total noninterest income 14,581 22,965 — — 37,546 Noninterest expense 58,975 23,320 1,205 — 83,500 Income (loss) before income taxes 14,709 384 (1,233) — 13,860 Provision (benefit) for income taxes 2,825 98 (346) — 2,577 Net income (loss) $ 11,884 $ 286 $ (887) $ — $ 11,283 Total assets at period end $ 2,855,386 $ 95,423 $ 387,427 $ (485,436) $ 2,852,800 Goodwill at period end $ 3,186 $ 10,474 $ — $ — $ 13,660 Three Months Ended September 30, 2017 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (In thousands) Net interest and dividend income $ 18,731 $ 487 $ 51 $ — $ 19,269 Provision for loan losses 921 — — — 921 Net interest income, after provision for loan losses 17,810 487 51 — 18,348 Mortgage banking income: Changes in mortgage servicing rights fair value (170) (318) — — (488) Other 834 10,237 — — 11,071 Total mortgage banking income 664 9,919 — — 10,583 Other noninterest income 4,034 10 — — 4,044 Total noninterest income 4,698 9,929 — — 14,627 Noninterest expense 18,716 9,457 265 — 28,438 Income (loss) before income taxes 3,792 959 (214) — 4,537 Provision (benefit) for income taxes 1,393 392 (86) — 1,699 Net income (loss) $ 2,399 $ 567 $ (128) $ — $ 2,838 Nine Months Ended September 30, 2017 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income $ 53,573 $ 1,251 $ 92 $ — $ 54,916 Provision for loan losses 1,656 — — — 1,656 Net interest income, after provision for loan losses 51,917 1,251 92 — 53,260 Mortgage banking income: Changes in mortgage servicing rights fair value (723) (1,259) — — (1,982) Other 2,476 27,641 — — 30,117 Total mortgage banking income 1,753 26,382 — — 28,135 Other noninterest income 12,226 19 — — 12,245 Total noninterest income 13,979 26,401 — — 40,380 Noninterest expense 53,931 25,420 370 — 79,721 Income (loss) before income taxes 11,965 2,232 (278) — 13,919 Provision (benefit) for income taxes 4,342 902 (111) — 5,133 Net income (loss) $ 7,623 $ 1,330 $ (167) $ — $ 8,786 Total assets at period end $ 2,591,620 $ 133,534 $ 340,930 $ (406,625) $ 2,659,459 Goodwill at period end $ 3,186 $ 10,179 $ — $ — $ 13,365

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Bais of Presentation and Consolidation	Basis of Presentation and Consolidation The unaudited interim Consolidated Financial Statements of HarborOne Bancorp, Inc. (the “Company”) presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by the U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments and disclosures considered necessary for the fair presentation of the accompanying Consolidated Financial Statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended December 31, 2017 and 2016 and notes thereto included in the Company’s Annual Report on Form 10-K. The unaudited interim Consolidated Financial Statements include the accounts of the Company; the Company’s subsidiaries, Legion Parkway Company LLC, a security corporation formed on July 13, 2016, HarborOne Bank (the “Bank”); and the Bank’s wholly-owned subsidiaries. The Bank’s subsidiaries consist of a mortgage company and two security corporations. Merrimack Mortgage Company, LLC was acquired and became a wholly-owned subsidiary of the Bank on July 1, 2015, and effective April 3, 2018 became HarborOne Mortgage, LLC (“HarborOne Mortgage”). The security corporations were established for the purpose of buying, holding and selling securities on their own behalf. All significant intercompany balances and transactions have been eliminated in consolidation.
Stock Conversion	Stock Conversion On June 29, 2016, the Bank reorganized into a two-tier mutual holding company structure with the Company as a mid-tier stock holding company. The Company sold 14,454,396 shares of common stock at $10.00 per share, including 1,187,188 shares purchased by the Company’s Employee Stock Ownership Plan (“ESOP”). In addition, the Company issued 17,281,034 shares to HarborOne Mutual Bancshares, a mutual holding company (the “MHC”) and 385,450 shares to The HarborOne Foundation, a charitable foundation formed in connection with the stock offering and dedicated to supporting charitable organizations operating in the Bank’s local community. A total of 32,120,880 shares of common stock were outstanding following the completion of the stock offering. The direct costs of the Company’s stock offering of $3.9 million were deferred and deducted from the proceeds of the offering. Upon the completion of the stock offering, a special “liquidation account” was established for the benefit of certain depositors of the Bank in an amount equal to the percentage ownership interest in the equity of the Company held by persons other than the MHC as of the date of the latest balance sheet contained in the prospectus. The Company is not permitted to pay dividends on its capital stock if the Company’s shareholders’ equity would be reduced below the amount of the liquidation account. The liquidation account will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases in an eligible account holder’s qualifying deposits will not restore such holder’s interest in the liquidation account.
Nature of Operations	Nature of Operations The Company provides a variety of financial services to individuals and businesses through its 23 full-service and two limited-service bank offices in eastern Massachusetts and Rhode Island, and two commercial lending offices in Boston, Massachusetts and Providence, Rhode Island. HarborOne Mortgage maintains 40 offices in Massachusetts, Rhode Island, New Hampshire, Maine, and New Jersey and is also licensed to lend in five additional states. The Company’s primary deposit products are checking, money market, savings and term certificate of deposit accounts while its primary lending products are commercial real estate, commercial, residential mortgages, home equity, and consumer loans. The Company also originates, sells and services residential mortgage loans through HarborOne Mortgage.
Use of Estimates	Use of Estimates In preparing unaudited interim Consolidated Financial Statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuations of mortgage servicing rights, derivatives, goodwill and deferred tax assets.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed and generally do not exceed the time frame provided in the FDIC’s Uniform Retail Credit Classification and Account Management Policy. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general, allocated and unallocated components, as further described below. General component The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the Company’s loan segments. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment except commercial real estate and commercial loans. Due to the lack of historical loss experience for our commercial real estate and commercial loan portfolio, we utilize peer loss data. Adjustments to this historical loss factor are considered for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during 2017 or the nine months ended September 30, 2018. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate – The Company generally does not originate portfolio loans with a loan-to-value ratio greater than 80 percent without obtaining private mortgage insurance and does not generally grant loans that would be classified as subprime upon origination. The Company generally has first or second liens on property securing equity lines of credit. Loans in this segment are generally collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, can have an effect on the credit quality in this segment. Commercial real estate – Loans in this segment are primarily secured by income-producing properties in southeastern New England. The underlying cash flows generated by the properties can be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, could have an effect on the credit quality in this segment. Management obtains rent rolls annually and continually monitors the cash flows of these loans. Construction – Loans in this segment include both residential and commercial construction loans. Residential construction loans include loans to build one- to four-family owner-occupied properties, which are subject to the same credit quality factors as residential real estate loans. Commercial construction loans may include speculative real estate development loans for which payment is derived from lease or sale of the property. Credit risk is affected by cost overruns, time to lease or sell at an adequate price, and market conditions. Commercial – Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality in this segment. Consumer – Loans in this segment are generally secured by automobiles or unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated component The allocated component relates to loans that are classified as impaired. Residential real estate, commercial, commercial real estate and construction loans are evaluated for impairment on a loan-by-loan basis. Impairment is determined by nonaccrual status, whether a loan is subject to a troubled debt restructuring agreement or in the case of certain loans, based on the internal credit rating. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, except for troubled debt restructurings (“TDRs”), the Company does not separately identify individual consumer loans for impairment evaluation. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR. All TDRs are initially classified as impaired. Impairment is measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. Unallocated component The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. The unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. Additionally the Company's unseasoned commercial portfolio and use of peer group data to establish general reserves for the commercial portfolio adds another element of risk to management's estimates.
Stock-based Compensation Plans	Stock-based Compensation Plan The Company’s stock-based compensation plan provides for awards of stock options, restricted stock and other stock-based compensation to directors, officers and employees. The cost of employee services received in exchange for awards of equity instruments is based on the grant-date fair value of those awards. Compensation cost is recognized over the requisite service period as a component of compensation expense. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options granted, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. The Company accounts for forfeitures of share-based payments by recognizing forfeitures of awards as they occur (e.g., when an award does not vest because the employee leaves the Company or does not meet specific performance measures).
Earnings Per Share	Earnings Per Share Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. The restricted stock awards are participating securities; therefore, unvested awards are included as common shares outstanding in the computation of basic earnings per share. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock option awards and are determined using the treasury stock method.
Recent Accounting Pronouncements	Recent Accounting Pronouncements As an “emerging growth company”, as defined in Title 1 of the Jumpstart Our Business Startups (“JOBS”) Act, the Company has elected to use the extended transition period to delay the adoption of new or reissued accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. As of September 30, 2018, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. In October 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-16, Derivatives and Hedging (Topic 815) – Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedging Accounting Purposes . The purpose of ASU 2018-16 is to permit the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. The amendments in ASU 2018-16 are effective for public business entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, if ASU 2017-12 has already been adopted. Early adoption is permitted in any interim period upon issuance of ASU 2018-16 if a public business entity has adopted ASU 2017-12. The amendments in ASU 2018-16 should be applied prospectively for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. The Company does not have any derivatives within the scope of the ASU. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). ASU 2018-02 amends ASU Topic 220 and allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (“Tax Act”), to eliminate the stranded tax effects resulting from the Tax Act. The Company early adopted this amendment in the first quarter of 2018 and reclassified $104,000 from accumulated other comprehensive income to retained earnings. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. This guidance changes the recognition and presentation requirements of hedge accounting, including eliminating the requirement to separately measure and report hedge ineffectiveness and presenting all items that affect earnings in the same income statement line as the hedged item. This guidance also provides new alternatives for applying hedge accounting to additional hedging strategies, measuring the hedged item in fair value hedges of interest rate risk, reducing the complexity of applying hedge accounting by easing the requirements for effectiveness testing, hedge documentation and application of the critical terms match method, and reducing the risk of material error corrections if a company applies the shortcut method inappropriately. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company does not have any derivatives within the scope of the ASU. In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) , which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Entities will now use forward-looking information to better form their credit loss estimates. The ASU also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. For public entities that are SEC filers, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For non-public entities, this ASU is effective for fiscal years beginning after December 15, 2020, and for interim periods within fiscal years beginning after December 15, 2021. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management has identified an implementation team that is in the process of developing an understanding of this pronouncement, evaluating the impact of this pronouncement and researching additional software resources that could assist with the implementation. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) . This update requires a lessee to record a right-to-use asset and a liability representing the obligation to make lease payments for long-term leases. For public business entities, this update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For non-public business entities, this update is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years beginning after December 15, 2020. While we are currently evaluating the impact of the new standard, we expect an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities but no material impact to the Consolidated Statement of Operations, for arrangements previously accounted for as operating leases. In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall, (Subtopic 825-10). The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Targeted improvements to generally accepted accounting principles include the requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, the elimination of the requirement for non-public business entities to disclose the fair value of financial instruments measured at amortized cost and the elimination of the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For non-public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Management currently does not expect this to have a material impact on the Company's Consolidated Financial Statements as the Company does not currently hold any equity securities. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The amendments in this update create Topic 606, Revenue from Contracts with Customers , and supersede the revenue recognition requirements in Topic 605, Revenue Recognition , including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, a company should apply a five step approach to revenue recognition. For public business entities, this ASU is effective for annual reporting periods, including interim periods, beginning after December 15, 2017. For non-public business entities, this ASU is effective for annual reporting periods beginning after December 31, 2018, and interim periods within fiscal years beginning after December 15, 2019. The Bank's primary source of revenue is interest income on financial assets and income from mortgage banking activities, which are explicitly excluded from the scope of the new guidance. As a result, adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. However, the Company will continue to monitor developments and additional guidance up to the effective date of these amendments.

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2018
SECURITIES
Schedule of securities with gross unrealized gains and losses	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (in thousands) September 30, 2018: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 22,997 $ — $ 949 $ 22,048 U.S. government-sponsored residential mortgage-backed securities 94,229 — 2,943 91,286 U.S. government-sponsored collateralized mortgage obligations 32,535 — 886 31,649 SBA asset-backed securities 48,373 — 1,509 46,864 Total securities available for sale $ 198,134 $ — $ 6,287 $ 191,847 Securities held to maturity U.S. government-sponsored residential mortgage-backed securities $ 15,572 $ 69 $ 649 $ 14,992 U.S. government-sponsored collateralized mortgage obligations 1,790 — 10 1,780 SBA asset-backed securities 5,819 — 166 5,653 Municipal bonds 24,190 450 — 24,640 Total securities held to maturity $ 47,371 $ 519 $ 825 $ 47,065 December 31, 2017: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 17,985 $ — $ 178 $ 17,807 U.S. government-sponsored residential mortgage-backed securities 74,368 132 630 73,870 U.S. government-sponsored collateralized mortgage obligations 36,753 35 106 36,682 SBA asset-backed securities 42,558 102 166 42,494 Total securities available for sale $ 171,664 $ 269 $ 1,080 $ 170,853 Securities held to maturity U.S. government-sponsored residential mortgage-backed securities $ 17,452 $ 97 $ 214 $ 17,335 U.S. government-sponsored collateralized mortgage obligations 2,042 54 — 2,096 SBA asset-backed securities 2,991 — 14 2,977 Municipal bonds 24,384 882 — 25,266 Total securities held to maturity $ 46,869 $ 1,033 $ 228 $ 47,674
Schedule of debt securities by contractual maturity	Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) After 5 years through 10 years $ 22,997 $ 22,048 $ 5,411 $ 5,472 Over 10 years — — 18,779 19,168 22,997 22,048 24,190 24,640 U.S. government-sponsored residential mortgage-backed securities 94,229 91,286 15,572 14,992 U.S. government-sponsored collateralized mortgage obligations 32,535 31,649 1,790 1,780 SBA asset-backed securities 48,373 46,864 5,819 5,653 Total $ 198,134 $ 191,847 $ 47,371 $ 47,065
Schedule of securities with continuous losses	Less Than Twelve Months Twelve Months and Over Gross Gross Unrealized Fair Unrealized Fair Losses Value Losses Value (in thousands) September 30, 2018: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 336 $ 12,675 $ 613 $ 9,373 U.S. government-sponsored residential mortgage-backed securities 1,605 58,666 1,338 32,621 U.S. government-sponsored collateralized mortgage obligations 602 22,854 284 8,794 SBA asset-backed securities 593 25,259 916 21,605 $ 3,136 $ 119,454 $ 3,151 $ 72,393 Securities held to maturity U.S. government-sponsored residential mortgage-backed securities $ — $ — $ 649 $ 13,206 U.S. government-sponsored collateralized mortgage obligations 10 1,780 — — SBA asset-backed securities 44 2,899 122 2,755 $ 54 $ 4,679 $ 771 $ 15,961 December 31, 2017: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 20 $ 4,980 $ 158 $ 9,827 U.S. government-sponsored residential mortgage-backed securities 155 31,684 475 26,123 U.S. government-sponsored collateralized mortgage obligations 53 10,886 53 2,870 SBA asset-backed securities 95 24,205 71 4,730 $ 323 $ 71,755 $ 757 $ 43,550 Securities held to maturity U.S. government-sponsored residential mortgage-backed securities $ 91 $ 8,211 $ 123 $ 6,970 SBA asset-backed securities 14 2,977 — — $ 105 $ 11,188 $ 123 $ 6,970

LOANS - (Tables)

LOANS - (Tables)	9 Months Ended
	Sep. 30, 2018
LOANS
Summary of balances of loans	September 30, December 31, 2018 2017 (in thousands) Residential real estate: One- to four-family $ 563,944 $ 677,837 Second mortgages and equity lines of credit 88,965 89,080 Residential construction 8,846 11,904 Commercial real estate 788,561 655,419 Commercial construction 129,796 116,739 Total mortgage loans on real estate 1,580,112 1,550,979 Commercial 139,616 109,523 Consumer loans: Auto 486,068 513,728 Personal 12,349 14,092 Total consumer loans 498,417 527,820 Total loans 2,218,145 2,188,322 Allowance for loan losses (19,440) (18,489) Net deferred loan costs 5,677 6,645 Loans, net $ 2,204,382 $ 2,176,478
Schedule of activity in allowance for loan losses and allocation of allowance to loan segments	The following is the activity in the allowance for loan losses for the three and nine months ended September 30, 2018 and 2017: Mortgage Loans Commercial Commercial Residential Real Estate Construction Commercial Consumer Unallocated Total (in thousands) Balance at June 30, 2018 $ 3,461 $ 8,672 $ 2,367 $ 1,969 $ 1,219 $ 1,556 $ 19,244 Provision (credit) for loan losses (262) 760 (355) 495 102 (108) 632 Charge-offs (50) — — (255) (209) — (514) Recoveries 10 — — 1 67 — 78 Balance at September 30, 2018 $ 3,159 $ 9,432 $ 2,012 $ 2,210 $ 1,179 $ 1,448 $ 19,440 Balance at June 30, 2017 $ 4,434 $ 7,075 $ 936 $ 2,114 $ 1,033 $ 1,589 $ 17,181 Provision (credit) for loan losses (27) 372 162 346 160 (92) 921 Charge-offs — — — — (230) — (230) Recoveries 10 — — — 51 — 61 Balance at September 30, 2017 $ 4,417 $ 7,447 $ 1,098 $ 2,460 $ 1,014 $ 1,497 $ 17,933 Mortgage Loans Commercial Commercial Residential Real Estate Construction Commercial Consumer Unallocated Total (in thousands) Balance at December 31, 2017 $ 4,000 $ 7,835 $ 1,810 $ 2,254 $ 1,000 $ 1,590 $ 18,489 Provision (credit) for loan losses (828) 1,597 202 944 553 (142) 2,326 Charge-offs (50) — — (990) (551) — (1,591) Recoveries 37 — — 2 177 — 216 Balance at September 30, 2018 $ 3,159 $ 9,432 $ 2,012 $ 2,210 $ 1,179 $ 1,448 $ 19,440 Balance at December 31, 2016 $ 4,963 $ 7,150 $ 924 $ 1,920 $ 780 $ 1,231 $ 16,968 Provision (credit) for loan losses (559) 297 174 658 820 266 1,656 Charge-offs (144) — — (134) (790) — (1,068) Recoveries 157 — — 16 204 — 377 Balance at September 30, 2017 $ 4,417 $ 7,447 $ 1,098 $ 2,460 $ 1,014 $ 1,497 $ 17,933 Allocation of the allowance to loan segments at September 30, 2018 and December 31, 2017 follows: Mortgage Loans Commercial Commercial Residential Real Estate Construction Commercial Consumer Unallocated Total (in thousands) September 30, 2018: Loans: Impaired loans $ 31,673 $ 391 $ — $ 1,805 $ — $ — $ 33,869 Non-impaired loans 630,082 788,170 129,796 137,811 498,417 — 2,184,276 Total loans $ 661,755 $ 788,561 $ 129,796 $ 139,616 $ 498,417 $ — $ 2,218,145 Allowance for loan losses: Impaired loans $ 1,170 $ — $ — $ — $ — $ — $ 1,170 Non-impaired loans 1,989 9,432 2,012 2,210 1,179 1,448 18,270 Total allowance for loan losses $ 3,159 $ 9,432 $ 2,012 $ 2,210 $ 1,179 $ 1,448 $ 19,440 December 31, 2017: Loans: Impaired loans $ 34,440 $ 312 $ - $ 3,069 $ — $ — $ 37,821 Non-impaired loans 744,381 655,107 116,739 106,454 527,820 — 2,150,501 Total loans $ 778,821 $ 655,419 $ 116,739 $ 109,523 $ 527,820 $ — $ 2,188,322 Allowance for loan losses: Impaired loans $ 1,242 $ — $ — $ 739 $ — $ — $ 1,981 Non-impaired loans 2,758 7,835 1,810 1,515 1,000 1,590 16,508 Total allowance for loan losses $ 4,000 $ 7,835 $ 1,810 $ 2,254 $ 1,000 $ 1,590 $ 18,489
Summary of past due and non-accrual loans	90 Days 30-59 Days 60-89 Days or More Total Loans on Past Due Past Due Past Due Past Due Non-accrual (in thousands) September 30, 2018 Residential real estate: One- to four-family $ 3,835 $ — $ 5,892 $ 9,727 $ 12,516 Second mortgages and equity lines of credit 218 214 298 730 914 Commercial real estate — — 391 391 391 Commercial 445 5 2,655 3,105 2,655 Consumer: Auto 2,182 535 192 2,909 250 Personal 25 51 8 84 9 Total $ 6,705 $ 805 $ 9,436 $ 16,946 $ 16,735 December 31, 2017 Residential real estate: One- to four-family $ 3,269 $ 1,116 $ 5,267 $ 9,652 $ 13,308 Second mortgages and equity lines of credit 256 110 296 662 876 Commercial real estate — 312 — 312 312 Commercial construction — — — — 130 Commercial 2 — 260 262 3,038 Consumer: Auto 1,641 342 165 2,148 162 Personal 32 22 18 72 29 Total $ 5,200 $ 1,902 $ 6,006 $ 13,108 $ 17,855
Schedule of information pertaining to impaired loans	The following information pertains to impaired loans: September 30, 2018 December 31, 2017 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (in thousands) Impaired loans without a valuation allowance: Residential $ 12,287 $ 12,807 $ — $ 12,561 $ 13,171 $ — Commercial real estate 391 391 — 312 312 — Commercial construction — — — 130 130 — Commercial 1,805 2,591 — — — — Total $ 14,483 $ 15,789 $ — $ 13,003 $ 13,613 $ — Impaired loans with a valuation allowance: Residential $ 19,386 $ 20,001 $ 1,169 $ 21,749 $ 22,457 $ 1,242 Commercial — — — 3,069 3,153 739 Total $ 19,386 $ 20,001 $ 1,169 $ 24,818 $ 25,610 $ 1,981 Three Months Ended September 30, 2018 2017 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (in thousands) Residential $ 31,712 $ 441 $ 340 $ 38,114 $ 494 $ 384 Commercial real estate 391 — — — — — Commercial construction — — — 131 2 2 Commercial 1,933 — — 3,896 5 4 Total $ 34,036 $ 441 $ 340 $ 42,141 $ 501 $ 390 Nine Months Ended September 30, 2018 2017 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized on Cash Basis Investment Recognized on Cash Basis (in thousands) Residential $ 32,552 $ 1,427 $ 1,129 $ 40,087 $ 1,721 $ 1,382 Commercial real estate 351 — — — — — Commercial construction 33 — — 132 10 10 Commercial 2,409 8 5 3,770 62 61 Total $ 35,345 $ 1,435 $ 1,134 $ 43,989 $ 1,793 $ 1,453
Schedule of loans by risk rating	September 30, 2018 December 31, 2017 Commercial Commercial Commercial Commercial Real Estate Commercial Construction Real Estate Commercial Construction (in thousands) Loans rated 1 - 6 $ 779,886 $ 134,212 $ 129,796 $ 652,625 $ 105,888 $ 116,739 Loans rated 7 6,222 3,599 — — 818 — Loans rated 8 — — — — 1,990 — Loans rated 9 — 1,805 — — 827 — Loans rated 10 — — — — — — Loans not rated 2,453 — — 2,794 — — $ 788,561 $ 139,616 $ 129,796 $ 655,419 $ 109,523 $ 116,739

MORTGAGE LOAN SERVICING (Tables

MORTGAGE LOAN SERVICING (Tables)	9 Months Ended
	Sep. 30, 2018
MORTGAGE LOAN SERVICING
Tabular disclosure of assumptions used in the calculation of fair value of MSR	September 30, December 31, 2018 2017 Prepayment speed 8.60 % 9.79 % Discount rate 9.28 9.26 Default rate 2.02 2.23
Schedule of summarized changes to mortgage servicing rights	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Balance, beginning of period $ 22,832 $ 20,313 $ 21,092 $ 20,333 Additions 1,294 551 2,318 2,025 Changes in fair value due to : Reductions from loans paid off during the period (521) (415) (1,362) (1,138) Changes in valuation inputs or assumptions 143 (73) 1,700 (844) Balance, end of period $ 23,748 $ 20,376 $ 23,748 $ 20,376

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2018
DEPOSITS
Summary of deposit balances, by type	September 30, December 31, 2018 2017 (in thousands) NOW and demand deposit accounts $ 432,628 $ 395,153 Regular savings and club accounts 327,030 356,300 Money market deposit accounts 674,657 721,021 Total non-certificate accounts 1,434,315 1,472,474 Term certificate accounts greater than $250,000 151,639 78,165 Term certificate accounts less than or equal to $250,000 532,856 389,609 Brokered deposits 66,831 73,490 Total certificate accounts 751,326 541,264 Total deposits $ 2,185,641 $ 2,013,738
Summary of certificate accounts by maturity	Weighted Average Amount Rate (dollars in thousands) Within 1 year $ 584,792 2.02 % Over 1 year to 2 years 110,484 2.04 Over 2 years to 3 years 40,150 1.77 Over 3 years to 4 years 14,630 1.69 Over 4 years 1,270 2.08 $ 751,326 2.00 %

FHLB BORROWINGS (Tables)

FHLB BORROWINGS (Tables)	9 Months Ended
	Sep. 30, 2018
FHLB BORROWINGS
Schedule of borrowed funds by maturity and call date	September 30, 2018 December 31, 2017 Weighted Weighted Redeemable Average Redeemable Average Amount at Call Date (1) Rate (2) Amount at Call Date (1) Rate (2) (dollars in thousands) Year ending December 31: 2018 $ 30,000 $ 35,000 1.44 % $ 111,250 $ 111,250 1.47 % 2019 60,000 90,000 1.66 60,000 60,000 1.66 2020 50,000 60,000 1.84 50,000 50,000 1.84 2021 40,000 20,000 1.81 20,000 20,000 1.79 2022 5,000 — 0.96 — — — 2023 and thereafter* 21,187 1,187 1.03 5,115 5,115 0.65 $ 206,187 $ 206,187 1.62 % $ 246,365 $ 246,365 1.60 % * Includes an amortizing advance requiring monthly principal and interest payments of $1,000. (1) Callable FHLB advances are shown in the respective periods assuming that the callable debt is redeemed at the call date, while all other advances are shown in the periods corresponding to their scheduled maturity date. There were no callable advances at December 31, 2017. (2) Weighted average rates are based on scheduled maturity dates.

OTHER COMMITMENTS AND CONTING_2

OTHER COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2018
OTHER COMMITMENTS AND CONTINGENCIES
Schedule of financial instruments with off-balance sheet credit risk	September 30, December 31, 2018 2017 (in thousands) Commitments to grant loans $ 44,106 $ 86,790 Unadvanced funds on home equity lines of credit 78,988 77,117 Unadvanced funds on revolving lines of credit 102,698 71,151 Unadvanced funds on construction loans 134,126 144,918

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
	Sep. 30, 2018
DERIVATIVES
Schedule of the fair values of derivative instruments in the balance sheet	Assets Liabilities Balance Balance Notional Sheet Fair Sheet Fair Amount Location Value Location Value (in thousands) September 30, 2018: Derivative loan commitments $ 89,381 Other assets $ 1,280 Other liabilities $ 13 Forward loan sale commitments 92,776 Other assets 368 Other liabilities 19 Interest rate swaps 293,869 Other assets 4,741 Other liabilities 4,741 Risk participation agreements 83,987 Other assets — Other liabilities — Total $ 6,389 $ 4,773 December 31, 2017: Derivative loan commitments $ 81,604 Other assets $ 1,047 Other liabilities $ 27 Forward loan sale commitments 95,680 Other assets 46 Other liabilities 92 Interest rate swaps 246,704 Other assets 2,153 Other liabilities 2,153 Risk participation agreements 42,856 Other assets — Other liabilities — Total $ 3,246 $ 2,272
Schedule of information pertaining to the Company's derivative instruments on the statements of income	Amount of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2018 2017 2018 2017 (in thousands) Derivative loan commitments Mortgage banking income $ (358) $ 30 $ 247 $ 430 Forward loan sale commitments Mortgage banking income 719 (80) 395 (870) Total $ 361 $ (50) $ 642 $ (440)

COMPENSATION AND BENEFIT PLANS

COMPENSATION AND BENEFIT PLANS (Tables)	9 Months Ended
	Sep. 30, 2018
COMPENSATION AND BENEFIT PLANS
Schedule of share information held by the ESOP	September 30, 2018 December 31, 2017 Allocated shares 118,719 59,359 Shares committed to be allocated 44,520 59,359 Unallocated shares 1,023,949 1,068,470 Total shares 1,187,188 1,187,188 Fair value of unallocated shares $ 19,578,000 $ 20,472,000

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2018
STOCK-BASED COMPENSATION
Schedule of stock options, valuation assumptions	Expected volatility 24 % Expected life (years) 6 Expected dividend yield — % Risk free interest rate 2.98 % Fair value per option $
Schedule of stock option activity	Weighted Average Weighted Remaining Aggregate Stock Option Average Contractual Intrinsic Awards Exercise Price Term (years) Value Balance at January 1, 2018 (1) 883,311 $ 18.35 9.13 Granted 13,062 19.03 10.00 Forfeited or expired (30,917) 18.35 Balance at September 30, 2018 865,456 $ 18.36 8.73 $ 666,401 Exercisable at September 30, 2018 226,709 $ 18.35 8.44 $ — Unrecognized cost inclusive of directors' awards $ 2,727,000 Weighted average remaining recognition period (years) 1.88 (1) During the quarter ended September 30, 2018, the Company discovered a clerical error in the Plan documents that resulted in the number of stock options awarded in 2017 being overstated by 442,752. As a result, the beginning balance of the stock option awards outstanding in the table above have been decreased from the amount previously reported at December 31, 2017.
Schedule of non-vested stock award activity	Restricted Weighted Average Stock Awards Grant Price Non-vested stock awards at January 1, 2018 541,415 $ 18.35 Vested (180,465) 18.35 Granted 4,900 19.03 Forfeited (12,367) 18.35 Non-vested stock awards at September 30, 2018 353,483 $ 18.36 Unrecognized cost inclusive of directors' awards $ 6,093,000 Weighted average remaining recognition period (years) 1.88

MINIMUM REGULATORY CAPITAL RE_2

MINIMUM REGULATORY CAPITAL REQUIREMENTS (Tables)	9 Months Ended
	Sep. 30, 2018
MINIMUM REGULATORY CAPITAL REQUIREMENTS
Summary of bank's actual capital levels and minimum required levels	Minimum Required to be Considered "Well Capitalized" Minimum Required for Under Prompt Corrective Actual Capital Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) HarborOne Bancorp, Inc. September 30, 2018 Common equity Tier 1 capital to risk-weighted assets $ 344,495 14.8 % $ 105,041 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 344,495 14.8 140,054 6.0 N/A N/A Total capital to risk-weighted assets 363,934 15.6 186,739 8.0 N/A N/A Tier 1 capital to average assets 344,495 12.2 112,624 4.0 N/A N/A December 31, 2017 Common equity Tier 1 capital to risk-weighted assets $ 330,514 15.1 % $ 98,292 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 330,514 15.1 131,056 6.0 N/A N/A Total capital to risk-weighted assets 349,002 16.0 174,741 8.0 N/A N/A Tier 1 capital to average assets 330,514 12.5 105,423 4.0 N/A N/A HarborOne Bank September 30, 2018 Common equity Tier 1 capital to risk-weighted assets $ 264,502 11.3 % $ 104,987 4.5 % $ 151,649 6.5 % Tier 1 capital to risk-weighted assets 264,502 11.3 139,983 6.0 186,644 8.0 Total capital to risk-weighted assets 283,942 12.2 186,644 8.0 233,306 10.0 Tier 1 capital to average assets 264,502 9.4 112,428 4.0 140,535 5.0 December 31, 2017 Common equity Tier 1 capital to risk-weighted assets $ 249,532 11.4 % $ 98,266 4.5 % $ 141,939 6.5 % Tier 1 capital to risk-weighted assets 249,532 11.4 131,021 6.0 174,695 8.0 Total capital to risk-weighted assets 268,021 12.3 174,695 8.0 218,368 10.0 Tier 1 capital to average assets 249,532 9.6 104,264 4.0 130,329 5.0

COMPREHENSIVE INCOME (LOSS) (Ta

COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 30, 2018
COMPREHENSIVE INCOME (LOSS)
Schedule of components of accumulated other comprehensive loss	September 30, December 31, 2018 2017 (in thousands) Securities available for sale: Net unrealized loss $ (6,287) $ (811) Related tax effect 1,383 283 Total accumulated other comprehensive loss $ (4,904) $ (528)
Summary of components of OCI	Three Months Ended September 30, 2018 2017 Unrealized Gains Unrealized Gains and Losses on and Losses on Director's Available-for-Sale Available-for-Sale Retirement Securities Securities Plan Total (in thousands) Balance at beginning of period $ (3,733) $ (30) $ (538) $ (568) Other comprehensive income (loss) before reclassifications (1,501) 180 — 180 Reclassification adjustment for amortization of prior service cost — — 60 60 Net current period other comprehensive income (loss) (1,501) 180 60 240 Related tax effect 330 (63) (24) (87) Balance at end of period $ (4,904) $ 87 $ (502) $ (415) Nine Months Ended September 30, 2018 2017 Unrealized Gains Unrealized Gains and Losses on and Losses on Directors' Available-for-Sale Available-for-Sale Retirement Securities Securities Plan Total (in thousands) Balance at beginning of period $ (528) $ (665) $ (625) $ (1,290) Other comprehensive income (loss) before reclassifications (5,476) 1,155 — 1,155 Stranded effect of tax rate change (104) — — — Reclassification adjustment for amortization of prior service cost — — 181 181 Net current period other comprehensive income (loss) (5,580) 1,155 181 1,336 Related tax effect 1,204 (403) (58) (461) Balance at end of period $ (4,904) $ 87 $ (502) $ (415)

FAIR VALUE OF ASSETS AND LIAB_2

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2018
FAIR VALUE OF ASSETS AND LIABILITIES
Schedule of the fair value and contractual principal of loans held for sale	September 30, December 31, 2018 2017 (in thousands) Loans held for sale, fair value $ 155,268 $ 59,460 Loans held for sale, contractual principal outstanding 153,927 57,575 Fair value less unpaid principal balance $ 1,341 $ 1,885
Schedule of assets and liabilities measured at fair value on a recurring basis	Total Level 1 Level 2 Level 3 Fair Value (in thousands) September 30, 2018 Assets Securities available for sale $ — $ 191,847 $ — $ 191,847 Loans held for sale — 155,268 — 155,268 Mortgage servicing rights — 23,748 — 23,748 Derivative loan commitments — — 1,280 1,280 Forward loan sale commitments — — 368 368 Interest rate swaps — 4,741 — 4,741 $ — $ 375,604 $ 1,648 $ 377,252 Liabilities Derivative loan commitments $ — $ — $ 13 $ 13 Forward loan sale commitments — — 19 19 Interest rate swaps — 4,741 — 4,741 $ — $ 4,741 $ 32 $ 4,773 December 31, 2017 Assets Securities available for sale $ — $ 170,853 $ — $ 170,853 Loans held for sale — 59,460 — 59,460 Mortgage servicing rights — 21,092 — 21,092 Derivative loan commitments — — 1,047 1,047 Forward loan sale commitments — — 46 46 Interest rate swaps — 2,153 — 2,153 $ — $ 253,558 $ 1,093 $ 254,651 Liabilities Derivative loan commitments $ — $ — $ 27 $ 27 Forward loan sale commitments — — 92 92 Interest rate swaps — 2,153 — 2,153 $ — $ 2,153 $ 119 $ 2,272
Schedule of changes in Level 3 assets measured at fair value on a recurring basis	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Assets: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ 1,755 $ 1,994 $ 1,093 $ 2,722 Total gains (losses) included in net income (1) (107) (67) 555 (795) Balance at end of period $ 1,648 $ 1,927 $ 1,648 $ 1,927 Changes in unrealized gains relating to instruments at period end $ 1,648 $ 1,927 $ 1,648 $ 1,927 Liabilities: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ (500) $ (238) $ (119) $ (576) Total gains (losses) included in net income (1) 468 17 87 355 Balance at end of period $ (32) $ (221) $ (32) $ (221) Changes in unrealized losses relating to instruments at period end $ (32) $ (221) $ (32) $ (221) (1) Included in mortgage banking income on the Consolidated Statements of Net Income.
Schedule of changes in Level 3 liabilities measured at fair value on a recurring basis	The table below presents, for the three and nine months ended September 30, 2018 and 2017, the changes in Level 3 assets and liabilities that are measured at fair value on a recurring basis. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Assets: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ 1,755 $ 1,994 $ 1,093 $ 2,722 Total gains (losses) included in net income (1) (107) (67) 555 (795) Balance at end of period $ 1,648 $ 1,927 $ 1,648 $ 1,927 Changes in unrealized gains relating to instruments at period end $ 1,648 $ 1,927 $ 1,648 $ 1,927 Liabilities: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ (500) $ (238) $ (119) $ (576) Total gains (losses) included in net income (1) 468 17 87 355 Balance at end of period $ (32) $ (221) $ (32) $ (221) Changes in unrealized losses relating to instruments at period end $ (32) $ (221) $ (32) $ (221)
Schedule of assets measured at fair value on a non-recurring basis	September 30, 2018 December 31, 2017 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Impaired loans $ — $ — $ 2,371 $ — $ — $ 3,277 Other real estate owned and repossessed assets — — 672 — — 762 $ — $ — $ 3,043 $ — $ — $ 4,039 Losses in the following table represent the amount of the fair value adjustments recorded during the period on the carrying value of the assets held at September 30, 2018 and December 31, 2017, respectively. Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Impaired loans $ — $ 444 $ 34 $ 525 Other real estate owned and repossessed assets — 11 5 58 $ — $ 455 $ 39 $ 583
Schedule of estimated fair values and related carrying amounts of financial instruments	September 30, 2018 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 95,097 $ 95,097 $ — $ — $ 95,097 Securities available for sale 191,847 — 191,847 — 191,847 Securities held to maturity 47,371 — 47,065 — 47,065 Federal Home Loan Bank stock 13,263 — — 13,263 13,263 Loans held for sale 155,268 — 155,268 — 155,268 Loans, net 2,204,382 — — 2,177,544 2,177,544 Retirement plan annuities 12,830 — — 12,830 12,830 Mortgage servicing rights 23,748 — 23,748 — 23,748 Accrued interest receivable 7,452 — 7,452 — 7,452 Financial liabilities: Deposits 2,185,641 — — 2,180,590 2,180,590 Borrowed funds 265,042 — 228,632 — 228,632 Mortgagors' escrow accounts 4,655 — — 4,655 4,655 Accrued interest payable 622 — 622 — 622 Derivative loan commitments: Assets 1,280 — — 1,280 1,280 Liabilities 13 — — 13 13 Interest rate swap agreements: Assets 4,741 — 4,741 — 4,741 Liabilities 4,741 — 4,741 — 4,741 Forward loan sale commitments: Assets 368 — — 368 368 Liabilities 19 — — 19 19 December 31, 2017 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 80,791 $ 80,791 $ — $ — $ 80,791 Securities available for sale 170,583 — 170,853 — 170,853 Securities held to maturity 46,869 — 47,674 — 47,674 Federal Home Loan Bank stock 15,532 — — 15,532 15,532 Mortgage loans held for sale 59,460 — 59,460 — 59,460 Loans, net 2,176,478 — — 2,175,423 2,175,423 Retirement plan annuities 12,498 — — 12,498 12,498 Mortgage servicing rights 21,092 — 21,092 — 21,092 Accrued interest receivable 6,545 — 6,545 — 6,545 Financial liabilities: Deposits 2,013,738 — — 2,010,052 2,010,052 Borrowed funds 290,365 — 288,939 — 288,939 Mortgagors' escrow accounts 5,221 — — 5,221 5,221 Accrued interest payable 518 — 518 — 518 Derivative loan commitments: Assets 1,047 — — 1,047 1,047 Liabilities 27 — — 27 27 Interest rate swap agreements: Assets 2,153 — 2,153 — 2,153 Liabilities 2,153 — 2,153 — 2,153 Forward loan sale commitments: Assets 46 — — 46 46 Liabilities 92 — — 92 92

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
EARNINGS PER SHARE (“EPS”)
Schedule of basic and diluted earnings per share	Three Months Ended September 30, 2018 2017 Net income applicable to common stock (in thousands) $ 5,928 $ 2,838 Average number of common shares outstanding 32,604,157 32,391,588 Less: Average unallocated ESOP shares (1,028,947) (1,088,307) Average number of common shares outstanding used to calculate basic earnings per common share 31,575,210 31,303,281 Common stock equivalents 601 — Average number of common shares outstanding used to calculate diluted earnings per common share 31,575,811 31,303,281 Earnings per common share: Basic $ 0.19 $ 0.09 Diluted $ 0.19 $ 0.09 Nine Months Ended September 30, 2018 2017 Net income applicable to common stock (in thousands) $ 11,283 $ 8,786 Average number of common shares outstanding 32,618,973 32,212,107 Less: Average unallocated ESOP shares (1,044,292) (1,103,003) Average number of common shares outstanding used to calculate basic earnings per common share 31,574,681 31,109,104 Common stock equivalents 200 — Average number of common shares outstanding used to calculate diluted earnings per common share 31,574,881 31,109,104 Earnings per common share: Basic $ 0.36 $ 0.28 Diluted $ 0.36 $ 0.28

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2018
SEGMENT REPORTING
Summary of reportable segments	Three Months Ended September 30, 2018 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (In thousands) Net interest and dividend income $ 20,943 $ 308 $ (130) $ — $ 21,121 Provision for loan losses 632 — — — 632 Net interest income, after provision for loan losses 20,311 308 (130) — 20,489 Mortgage banking income: Changes in mortgage servicing rights fair value (59) (319) — — (378) Other 720 8,529 — — 9,249 Total mortgage banking income 661 8,210 — — 8,871 Other noninterest income 4,785 (16) — — 4,769 Total noninterest income 5,446 8,194 — — 13,640 Noninterest expense 18,824 8,184 375 — 27,383 Income (loss) before income taxes 6,933 318 (505) — 6,746 Provision (benefit) for income taxes 888 71 (141) — 818 Net income (loss) $ 6,045 $ 247 $ (364) $ — $ 5,928 Nine Months Ended September 30, 2018 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income $ 61,429 $ 739 $ (28) $ — $ 62,140 Provision for loan losses 2,326 — — — 2,326 Net interest income, after provision for loan losses 59,103 739 (28) — 59,814 Mortgage banking income: Changes in mortgage servicing rights fair value 60 278 — — 338 Other 1,599 22,676 — — 24,275 Total mortgage banking income 1,659 22,954 — — 24,613 Other noninterest income 12,922 11 — — 12,933 Total noninterest income 14,581 22,965 — — 37,546 Noninterest expense 58,975 23,320 1,205 — 83,500 Income (loss) before income taxes 14,709 384 (1,233) — 13,860 Provision (benefit) for income taxes 2,825 98 (346) — 2,577 Net income (loss) $ 11,884 $ 286 $ (887) $ — $ 11,283 Total assets at period end $ 2,855,386 $ 95,423 $ 387,427 $ (485,436) $ 2,852,800 Goodwill at period end $ 3,186 $ 10,474 $ — $ — $ 13,660 Three Months Ended September 30, 2017 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (In thousands) Net interest and dividend income $ 18,731 $ 487 $ 51 $ — $ 19,269 Provision for loan losses 921 — — — 921 Net interest income, after provision for loan losses 17,810 487 51 — 18,348 Mortgage banking income: Changes in mortgage servicing rights fair value (170) (318) — — (488) Other 834 10,237 — — 11,071 Total mortgage banking income 664 9,919 — — 10,583 Other noninterest income 4,034 10 — — 4,044 Total noninterest income 4,698 9,929 — — 14,627 Noninterest expense 18,716 9,457 265 — 28,438 Income (loss) before income taxes 3,792 959 (214) — 4,537 Provision (benefit) for income taxes 1,393 392 (86) — 1,699 Net income (loss) $ 2,399 $ 567 $ (128) $ — $ 2,838 Nine Months Ended September 30, 2017 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income $ 53,573 $ 1,251 $ 92 $ — $ 54,916 Provision for loan losses 1,656 — — — 1,656 Net interest income, after provision for loan losses 51,917 1,251 92 — 53,260 Mortgage banking income: Changes in mortgage servicing rights fair value (723) (1,259) — — (1,982) Other 2,476 27,641 — — 30,117 Total mortgage banking income 1,753 26,382 — — 28,135 Other noninterest income 12,226 19 — — 12,245 Total noninterest income 13,979 26,401 — — 40,380 Noninterest expense 53,931 25,420 370 — 79,721 Income (loss) before income taxes 11,965 2,232 (278) — 13,919 Provision (benefit) for income taxes 4,342 902 (111) — 5,133 Net income (loss) $ 7,623 $ 1,330 $ (167) $ — $ 8,786 Total assets at period end $ 2,591,620 $ 133,534 $ 340,930 $ (406,625) $ 2,659,459 Goodwill at period end $ 3,186 $ 10,179 $ — $ — $ 13,365

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Millions	Jun. 29, 2016USD ($)$ / sharesshares	Sep. 30, 2018companyitemstateshares	Dec. 31, 2017shares
Shares issued	14,454,396
Shares issued (in dollars per share) | $ / shares	$ 10
Shares in ESOP	1,187,188	1,187,188	1,187,188
Common stock, shares outstanding	32,120,880
Offering costs | $	$ 3.9
Number of full-service bank offices | item		23
Number of limited-service bank offices | item		2
Number of commercial lending offices | item		2
HarborOne Mutual Bancshares
Shares issued	17,281,034
HarborOne Foundation
Shares issued	385,450
HarborOne Bank
Number of security corporation subsidiaries | company		2
HarborOne Mortgage
Number of offices | item		40
Additional states licensed to lend | state		5
Residential | LTV 80 to 100 Percent
Loan To Value Ratio		80.00%

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($)	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive loss	$ (4,904,000)		$ (528,000)
Retained earnings	$ 218,977,000		$ 207,590,000
Adjustments for New Accounting Principle, Early Adoption | ASU 2018-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive loss		$ (104,000)
Retained earnings		$ 104,000

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details) - USD ($) $ in Thousands	Mar. 14, 2018	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Business Acquisition [Line Items]
Assets		$ 2,852,800	$ 2,684,920	$ 2,659,459
Deposits		$ 2,185,641	$ 2,013,738
Coastway
Business Acquisition [Line Items]
Acquisition cost	$ 125,600

SECURITIES - Gross unrealized g

SECURITIES - Gross unrealized gains and losses (Details) $ in Thousands	Sep. 30, 2018USD ($)security	Dec. 31, 2017USD ($)security
Securities available for sale
Amortized Cost	$ 198,134	$ 171,664
Gross Unrealized Gains		269
Gross Unrealized Losses	6,287	1,080
Fair Value	191,847	170,853
Securities held to maturity
Amortized Cost	47,371	46,869
Gross Unrealized Gains	519	1,033
Gross Unrealized Losses	825	228
Fair Value	$ 47,065	$ 47,674
Number of securities pledged | security	0	0
U.S. government and government-sponsored enterprise obligations
Securities available for sale
Amortized Cost	$ 22,997	$ 17,985
Gross Unrealized Losses	949	178
Fair Value	22,048	17,807
U.S. government-sponsored residential mortgage-backed securities
Securities available for sale
Amortized Cost	94,229	74,368
Gross Unrealized Gains		132
Gross Unrealized Losses	2,943	630
Fair Value	91,286	73,870
Securities held to maturity
Amortized Cost	15,572	17,452
Gross Unrealized Gains	69	97
Gross Unrealized Losses	649	214
Fair Value	14,992	17,335
U.S. government-sponsored collateralized mortgage obligations
Securities available for sale
Amortized Cost	32,535	36,753
Gross Unrealized Gains		35
Gross Unrealized Losses	886	106
Fair Value	31,649	36,682
Securities held to maturity
Amortized Cost	1,790	2,042
Gross Unrealized Gains		54
Gross Unrealized Losses	10
Fair Value	1,780	2,096
SBA asset-backed securities
Securities available for sale
Amortized Cost	48,373	42,558
Gross Unrealized Gains		102
Gross Unrealized Losses	1,509	166
Fair Value	46,864	42,494
Securities held to maturity
Amortized Cost	5,819	2,991
Gross Unrealized Losses	166	14
Fair Value	5,653	2,977
Municipal bonds
Securities held to maturity
Amortized Cost	24,190	24,384
Gross Unrealized Gains	450	882
Fair Value	$ 24,640	$ 25,266

SECURITIES - Contractual maturi

SECURITIES - Contractual maturity (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)item	Sep. 30, 2017item	Sep. 30, 2018USD ($)item	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Amortized Cost-Available-for-Sale
After 5 years through 10 years	$ 22,997,000		$ 22,997,000
Total for contractual maturity	22,997,000		22,997,000
Amortized Cost	198,134,000		198,134,000		$ 171,664,000
Fair Value-Available-for-Sale
After 5 years through 10 years	22,048,000		22,048,000
Total for contractual maturity	22,048,000		22,048,000
Total	191,847,000		191,847,000		170,853,000
Amortized Cost-Held-to-Maturity
After 5 years through 10 years	5,411,000		5,411,000
Over 10 years	18,779,000		18,779,000
Total for contractual maturity	24,190,000		24,190,000
Amortized Cost	47,371,000		47,371,000		46,869,000
Fair Value-Held-to-Maturity
After 5 years through 10 years	5,472,000		5,472,000
Over 10 years	19,168,000		19,168,000
Total for contractual maturity	24,640,000		24,640,000
Total	$ 47,065,000		$ 47,065,000		47,674,000
Number of sales or calls of securities | item	0	0	0
Sales
Proceeds from sale of securities				$ 0
Calls
Proceeds				$ 400,000
Minimum
Fair Value-Held-to-Maturity
Maturity period			4 years
Maximum
Fair Value-Held-to-Maturity
Maturity period			29 years
U.S. government-sponsored residential mortgage-backed securities
Amortized Cost-Available-for-Sale
No single maturity date	$ 94,229,000		$ 94,229,000
Amortized Cost	94,229,000		94,229,000		74,368,000
Fair Value-Available-for-Sale
No single maturity date	91,286,000		91,286,000
Total	91,286,000		91,286,000		73,870,000
Amortized Cost-Held-to-Maturity
No single maturity date	15,572,000		15,572,000
Amortized Cost	15,572,000		15,572,000		17,452,000
Fair Value-Held-to-Maturity
No single maturity date	14,992,000		14,992,000
Total	14,992,000		14,992,000		17,335,000
U.S. government-sponsored collateralized mortgage obligations
Amortized Cost-Available-for-Sale
No single maturity date	32,535,000		32,535,000
Amortized Cost	32,535,000		32,535,000		36,753,000
Fair Value-Available-for-Sale
No single maturity date	31,649,000		31,649,000
Total	31,649,000		31,649,000		36,682,000
Amortized Cost-Held-to-Maturity
No single maturity date	1,790,000		1,790,000
Amortized Cost	1,790,000		1,790,000		2,042,000
Fair Value-Held-to-Maturity
No single maturity date	1,780,000		1,780,000
Total	1,780,000		1,780,000		2,096,000
SBA asset-backed securities
Amortized Cost-Available-for-Sale
No single maturity date	48,373,000		48,373,000
Amortized Cost	48,373,000		48,373,000		42,558,000
Fair Value-Available-for-Sale
No single maturity date	46,864,000		46,864,000
Total	46,864,000		46,864,000		42,494,000
Amortized Cost-Held-to-Maturity
No single maturity date	5,819,000		5,819,000
Amortized Cost	5,819,000		5,819,000		2,991,000
Fair Value-Held-to-Maturity
No single maturity date	5,653,000		5,653,000
Total	$ 5,653,000		$ 5,653,000		$ 2,977,000

SECURITIES - Gross unrealized l

SECURITIES - Gross unrealized losses aggregated by category (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)security	Dec. 31, 2017USD ($)
Securities
Number of debt securities with unrealized loss | security	71
Amortized cost of securities with unrealized losses	$ 219,600
Aggregate depreciation of securities with unrealized losses (as a percent)	3.24%
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months	$ 3,136	$ 323
Twelve Months and Over	3,151	757
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months	119,454	71,755
Twelve Months and Over	72,393	43,550
Continuous unrealized losses, Gross Unrealized Losses, Held-to-Maturity
Less than Twelve Months	54	105
Twelve Months and Over	771	123
Continuous unrealized losses, Fair Value, Held-for-Maturity
Less Than Twelve Months	4,679	11,188
Twelve Months and Over	15,961	6,970
U.S. government and government-sponsored enterprise obligations
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months	336	20
Twelve Months and Over	613	158
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months	12,675	4,980
Twelve Months and Over	9,373	9,827
U.S. government-sponsored residential mortgage-backed securities
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months	1,605	155
Twelve Months and Over	1,338	475
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months	58,666	31,684
Twelve Months and Over	32,621	26,123
Continuous unrealized losses, Gross Unrealized Losses, Held-to-Maturity
Less than Twelve Months		91
Twelve Months and Over	649	123
Continuous unrealized losses, Fair Value, Held-for-Maturity
Less Than Twelve Months		8,211
Twelve Months and Over	13,206	6,970
U.S. government-sponsored collateralized mortgage obligations
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months	602	53
Twelve Months and Over	284	53
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months	22,854	10,886
Twelve Months and Over	8,794	2,870
Continuous unrealized losses, Gross Unrealized Losses, Held-to-Maturity
Less than Twelve Months	10
Continuous unrealized losses, Fair Value, Held-for-Maturity
Less Than Twelve Months	1,780
SBA asset-backed securities
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months	593	95
Twelve Months and Over	916	71
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months	25,259	24,205
Twelve Months and Over	21,605	4,730
Continuous unrealized losses, Gross Unrealized Losses, Held-to-Maturity
Less than Twelve Months	44	14
Twelve Months and Over	122
Continuous unrealized losses, Fair Value, Held-for-Maturity
Less Than Twelve Months	2,899	$ 2,977
Twelve Months and Over	$ 2,755

LOANS - Summary of Balances of

LOANS - Summary of Balances of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Loans
Total loans	$ 2,218,145		$ 2,188,322
Less: Allowance for loan losses	(19,440)	$ (19,244)	(18,489)	$ (17,933)	$ (17,181)	$ (16,968)
Net deferred loan costs	5,677		6,645
Net loans	2,204,382		2,176,478
Mortgage loans on real estate
Loans
Total loans	1,580,112		1,550,979
Residential
Loans
Total loans	661,755		778,821
Less: Allowance for loan losses	(3,159)	(3,461)	(4,000)	(4,417)	(4,434)	(4,963)
Residential | 1-4 family
Loans
Total loans	563,944		677,837
Residential | Second mortgages and equity lines of credit
Loans
Total loans	88,965		89,080
Residential | Residential Construction
Loans
Total loans	8,846		11,904
Commercial real estate
Loans
Total loans	788,561		655,419
Less: Allowance for loan losses	(9,432)	(8,672)	(7,835)	(7,447)	(7,075)	(7,150)
Commercial Construction
Loans
Total loans	129,796		116,739
Less: Allowance for loan losses	(2,012)	(2,367)	(1,810)	(1,098)	(936)	(924)
Commercial
Loans
Total loans	139,616		109,523
Less: Allowance for loan losses	(2,210)	(1,969)	(2,254)	(2,460)	(2,114)	(1,920)
Consumer loans
Loans
Total loans	498,417		527,820
Less: Allowance for loan losses	(1,179)	$ (1,219)	(1,000)	$ (1,014)	$ (1,033)	$ (780)
Consumer loans | Auto
Loans
Total loans	486,068		513,728
Consumer loans | Personal
Loans
Total loans	$ 12,349		$ 14,092

LOANS - Loans Sold or Transferr

LOANS - Loans Sold or Transferred (Details) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Loans
Transfer of loans to loans held for sale		$ 105,351,000	$ 5,088,000
Fair value adjustment gain		472,000
Auto
Loans
Gain on sale of loans	$ 78,000
Unpaid principal balance of loans serviced for others		14,600,000		$ 22,400,000
Commercial - real estate
Loans
Unpaid principal balance of loans serviced for others		$ 119,800,000		$ 85,200,000

LOANS - Allowance for Loan Loss

LOANS - Allowance for Loan Losses Activity and Allocation to Loan Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Dec. 31, 2017
Activity in the allowance for loan losses
Balance	$ 19,244	$ 17,181	$ 18,489	$ 16,968
Provision (credit) for loan losses	632	921	2,326	1,656
Charge-offs	(514)	(230)	(1,591)	(1,068)
Recoveries	78	61	216	377
Balance	19,440	17,933	19,440	17,933
Allocation of the allowance to loan segments
Total loans					$ 2,218,145	$ 2,188,322
Total allowance for loan losses	19,244	17,181	18,489	16,968	19,440	18,489
Impaired loans
Activity in the allowance for loan losses
Balance			1,981
Balance	1,170		1,170
Allocation of the allowance to loan segments
Total loans					33,869	37,821
Total allowance for loan losses	1,170		1,981		1,170	1,981
Non-impaired loans
Activity in the allowance for loan losses
Balance			16,508
Balance	18,270		18,270
Allocation of the allowance to loan segments
Total loans					2,184,276	2,150,501
Total allowance for loan losses	18,270		16,508		18,270	16,508
Residential
Activity in the allowance for loan losses
Balance	3,461	4,434	4,000	4,963
Provision (credit) for loan losses	(262)	(27)	(828)	(559)
Charge-offs	(50)		(50)	(144)
Recoveries	10	10	37	157
Balance	3,159	4,417	3,159	4,417
Allocation of the allowance to loan segments
Total loans					661,755	778,821
Total allowance for loan losses	3,461	4,434	4,000	4,963	3,159	4,000
Residential | Impaired loans
Activity in the allowance for loan losses
Balance			1,242
Balance	1,170		1,170
Allocation of the allowance to loan segments
Total loans					31,673	34,440
Total allowance for loan losses	1,170		1,242		1,170	1,242
Residential | Non-impaired loans
Activity in the allowance for loan losses
Balance			2,758
Balance	1,989		1,989
Allocation of the allowance to loan segments
Total loans					630,082	744,381
Total allowance for loan losses	1,989		2,758		1,989	2,758
Commercial real estate
Activity in the allowance for loan losses
Balance	8,672	7,075	7,835	7,150
Provision (credit) for loan losses	760	372	1,597	297
Balance	9,432	7,447	9,432	7,447
Allocation of the allowance to loan segments
Total loans					788,561	655,419
Total allowance for loan losses	8,672	7,075	7,835	7,150	9,432	7,835
Commercial real estate | Impaired loans
Allocation of the allowance to loan segments
Total loans					391	312
Commercial real estate | Non-impaired loans
Activity in the allowance for loan losses
Balance			7,835
Balance	9,432		9,432
Allocation of the allowance to loan segments
Total loans					788,170	655,107
Total allowance for loan losses	9,432		7,835		9,432	7,835
Commercial Construction
Activity in the allowance for loan losses
Balance	2,367	936	1,810	924
Provision (credit) for loan losses	(355)	162	202	174
Balance	2,012	1,098	2,012	1,098
Allocation of the allowance to loan segments
Total loans					129,796	116,739
Total allowance for loan losses	2,367	936	1,810	924	2,012	1,810
Commercial Construction | Non-impaired loans
Activity in the allowance for loan losses
Balance			1,810
Balance	2,012		2,012
Allocation of the allowance to loan segments
Total loans					129,796	116,739
Total allowance for loan losses	2,012		1,810		2,012	1,810
Commercial
Activity in the allowance for loan losses
Balance	1,969	2,114	2,254	1,920
Provision (credit) for loan losses	495	346	944	658
Charge-offs	(255)		(990)	(134)
Recoveries	1		2	16
Balance	2,210	2,460	2,210	2,460
Allocation of the allowance to loan segments
Total loans					139,616	109,523
Total allowance for loan losses	1,969	2,114	2,254	1,920	2,210	2,254
Commercial | Impaired loans
Activity in the allowance for loan losses
Balance			739
Allocation of the allowance to loan segments
Total loans					1,805	3,069
Total allowance for loan losses			739			739
Commercial | Non-impaired loans
Activity in the allowance for loan losses
Balance			1,515
Balance	2,210		2,210
Allocation of the allowance to loan segments
Total loans					137,811	106,454
Total allowance for loan losses	2,210		1,515		2,210	1,515
Consumer loans
Activity in the allowance for loan losses
Balance	1,219	1,033	1,000	780
Provision (credit) for loan losses	102	160	553	820
Charge-offs	(209)	(230)	(551)	(790)
Recoveries	67	51	177	204
Balance	1,179	1,014	1,179	1,014
Allocation of the allowance to loan segments
Total loans					498,417	527,820
Total allowance for loan losses	1,219	1,033	1,000	780	1,179	1,000
Consumer loans | Non-impaired loans
Activity in the allowance for loan losses
Balance			1,000
Balance	1,179		1,179
Allocation of the allowance to loan segments
Total loans					498,417	527,820
Total allowance for loan losses	1,179		1,000		1,179	1,000
Unallocated
Activity in the allowance for loan losses
Balance	1,556	1,589	1,590	1,231
Provision (credit) for loan losses	(108)	(92)	(142)	266
Balance	1,448	1,497	1,448	1,497
Allocation of the allowance to loan segments
Total allowance for loan losses	1,556	$ 1,589	1,590	$ 1,231	1,448	1,590
Unallocated | Non-impaired loans
Activity in the allowance for loan losses
Balance			1,590
Balance	1,448		1,448
Allocation of the allowance to loan segments
Total allowance for loan losses	$ 1,448		$ 1,590		$ 1,448	$ 1,590

LOANS - Summary of Past Due and

LOANS - Summary of Past Due and Non-Accrual Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Summary of past due and non-accrual loans
Past Due	$ 16,946	$ 13,108
Loans on Non-accrual	16,735	17,855
Loans past due 90 days or more and still accruing	0	0
30 to 59 Days
Summary of past due and non-accrual loans
Past Due	6,705	5,200
60 to 89 Days
Summary of past due and non-accrual loans
Past Due	805	1,902
90 Days or More
Summary of past due and non-accrual loans
Past Due	9,436	6,006
Residential | 1-4 family
Summary of past due and non-accrual loans
Past Due	9,727	9,652
Loans on Non-accrual	12,516	13,308
Residential | 1-4 family | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	3,835	3,269
Residential | 1-4 family | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due		1,116
Residential | 1-4 family | 90 Days or More
Summary of past due and non-accrual loans
Past Due	5,892	5,267
Residential | Second mortgages and equity lines of credit
Summary of past due and non-accrual loans
Past Due	730	662
Loans on Non-accrual	914	876
Residential | Second mortgages and equity lines of credit | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	218	256
Residential | Second mortgages and equity lines of credit | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	214	110
Residential | Second mortgages and equity lines of credit | 90 Days or More
Summary of past due and non-accrual loans
Past Due	298	296
Commercial real estate
Summary of past due and non-accrual loans
Past Due	391	312
Loans on Non-accrual	391	312
Commercial real estate | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due		312
Commercial real estate | 90 Days or More
Summary of past due and non-accrual loans
Past Due	391
Commercial Construction
Summary of past due and non-accrual loans
Loans on Non-accrual		130
Commercial
Summary of past due and non-accrual loans
Past Due	3,105	262
Loans on Non-accrual	2,655	3,038
Commercial | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	445	2
Commercial | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	5
Commercial | 90 Days or More
Summary of past due and non-accrual loans
Past Due	2,655	260
Consumer loans | Auto
Summary of past due and non-accrual loans
Past Due	2,909	2,148
Loans on Non-accrual	250	162
Consumer loans | Auto | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	2,182	1,641
Consumer loans | Auto | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	535	342
Consumer loans | Auto | 90 Days or More
Summary of past due and non-accrual loans
Past Due	192	165
Consumer loans | Personal
Summary of past due and non-accrual loans
Past Due	84	72
Loans on Non-accrual	9	29
Consumer loans | Personal | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	25	32
Consumer loans | Personal | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	51	22
Consumer loans | Personal | 90 Days or More
Summary of past due and non-accrual loans
Past Due	$ 8	$ 18

LOANS - Impaired Loans (Details

LOANS - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Recorded Investment
Impaired loans without a valuation allowance	$ 14,483		$ 14,483		$ 13,003
Impaired loans with a valuation allowance	19,386		19,386		24,818
Unpaid Principal Balance
Impaired loans without a valuation allowance	15,789		15,789		13,613
Impaired loans with a valuation allowance	20,001		20,001		25,610
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans	1,169		1,169		1,981
Impaired loans
Average Recorded Investment	34,036	$ 42,141	35,345	$ 43,989
Interest Income Recognized	441	501	1,435	1,793
Interest Income Recognized on Cash Basis	340	390	1,134	1,453
Residential
Recorded Investment
Impaired loans without a valuation allowance	12,287		12,287		12,561
Impaired loans with a valuation allowance	19,386		19,386		21,749
Unpaid Principal Balance
Impaired loans without a valuation allowance	12,807		12,807		13,171
Impaired loans with a valuation allowance	20,001		20,001		22,457
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans	1,169		1,169		1,242
Impaired loans
Average Recorded Investment	31,712	38,114	32,552	40,087
Interest Income Recognized	441	494	1,427	1,721
Interest Income Recognized on Cash Basis	340	384	1,129	1,382
Commercial real estate
Recorded Investment
Impaired loans without a valuation allowance	391		391		312
Unpaid Principal Balance
Impaired loans without a valuation allowance	391		391		312
Impaired loans
Average Recorded Investment	391		351
Commercial Construction
Recorded Investment
Impaired loans without a valuation allowance					130
Unpaid Principal Balance
Impaired loans without a valuation allowance					130
Impaired loans
Average Recorded Investment		131	33	132
Interest Income Recognized		2		10
Interest Income Recognized on Cash Basis		2		10
Commercial
Recorded Investment
Impaired loans without a valuation allowance	1,805		1,805
Impaired loans with a valuation allowance					3,069
Unpaid Principal Balance
Impaired loans without a valuation allowance	2,591		2,591
Impaired loans with a valuation allowance					3,153
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans					$ 739
Impaired loans
Average Recorded Investment	$ 1,933	3,896	2,409	3,770
Interest Income Recognized		5	8	62
Interest Income Recognized on Cash Basis		$ 4	$ 5	$ 61

LOANS - Troubled Debt Restructu

LOANS - Troubled Debt Restructurings (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)contract	Sep. 30, 2017USD ($)contractloan	Sep. 30, 2018USD ($)contract	Sep. 30, 2017USD ($)contractloan	Dec. 31, 2017USD ($)
LOANS
Troubled debt restructurings during the period | loan		2		2
TDR modifications	$ 0	$ 1,600,000	$ 0	$ 1,600,000
Additional funds committed			0
Recorded investment of troubled debt restructurings	22,800,000		22,800,000		$ 26,400,000
Recorded investment of troubled debt restructurings that were nonaccruing	$ 4,600,000		$ 4,600,000		$ 6,100,000
Number of troubled debt restructurings that defaulted | contract	0	0	0	0

LOANS - Risk Rating (Details)

LOANS - Risk Rating (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)grade	Dec. 31, 2017USD ($)
Loans by risk rating
Number of grades utilized in internal loan rating system | grade	10
Total loans	$ 2,218,145	$ 2,188,322
Commercial real estate
Loans by risk rating
Total loans	788,561	655,419
Commercial real estate | Loans rated 1 - 6, pass
Loans by risk rating
Total loans	779,886	652,625
Commercial real estate | Loans rated 7, special mention
Loans by risk rating
Total loans	6,222
Commercial real estate | Loans not rated
Loans by risk rating
Total loans	2,453	2,794
Commercial
Loans by risk rating
Total loans	139,616	109,523
Commercial | Loans rated 1 - 6, pass
Loans by risk rating
Total loans	134,212	105,888
Commercial | Loans rated 7, special mention
Loans by risk rating
Total loans	3,599	818
Commercial | Loans rated 8, substandard
Loans by risk rating
Total loans		1,990
Commercial | Loans rated 9, doubtful
Loans by risk rating
Total loans	1,805	827
Commercial Construction
Loans by risk rating
Total loans	129,796	116,739
Commercial Construction | Loans rated 1 - 6, pass
Loans by risk rating
Total loans	$ 129,796	$ 116,739

MORTGAGE LOAN SERVICING - Key A

MORTGAGE LOAN SERVICING - Key Assumptions (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Unpaid Principal Balance
Unpaid principal balances of mortgage loans serviced	$ 1,910	$ 1,930
Prepayment speed (weighted average)	8.60%	9.79%
Discount rate (weighted average)	9.28%	9.26%
Default rate	2.02%	2.23%

MORTGAGE LOAN SERVICING - Fair

MORTGAGE LOAN SERVICING - Fair value of MSR (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Changes to the fair value of Mortgage Servicing Rights
Mortgage servicing rights, at fair value, beginning of period	$ 22,832	$ 20,313	$ 21,092	$ 20,333
Additions	1,294	551	2,318	2,025
Changes in fair value due to :
Reductions from loans paid off during the period	(521)	(415)	(1,362)	(1,138)
Changes in valuation inputs or assumptions	143	(73)	1,700	(844)
Mortgage servicing rights, at fair value, end of period	23,748	20,376	23,748	20,376
Fees and commissions, mortgage banking and servicing	$ 1,300	$ 1,300	$ 4,000	$ 3,900

DEPOSITS - Summary of deposits

DEPOSITS - Summary of deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
DEPOSITS
NOW and demand deposit accounts	$ 432,628	$ 395,153
Regular savings and club accounts	327,030	356,300
Money market deposit accounts	674,657	721,021
Total non-certificate accounts	1,434,315	1,472,474
Term certificate accounts greater than $250,000	151,639	78,165
Term certificate accounts less than or equal to $250,000	532,856	389,609
Brokered deposits	66,831	73,490
Total certificate accounts	751,326	541,264
Total deposits	2,185,641	2,013,738
Total reciprocal deposits	$ 108,600	$ 174,200

DEPOSITS - Maturity of deposits

DEPOSITS - Maturity of deposits (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Summary of certificate accounts by maturity
Within 1 year	$ 584,792
Over 1 year to 2 years	110,484
Over 2 years to 3 years	40,150
Over 3 years to 4 years	14,630
Over 4 years	1,270
Total certificate accounts	$ 751,326	$ 541,264
Summary of certificate accounts by maturity
Within 1 year	2.02%
Over 1 year to 2 years	2.04%
Over 2 years to 3 years	1.77%
Over 3 years to 4 years	1.69%
Over 4 years	2.08%
Weighted average interest rate	2.00%

FHLB BORROWINGS - FHLB Advances

FHLB BORROWINGS - FHLB Advances (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Short-term borrowed funds	$ 25,000,000	$ 44,000,000
Scheduled Maturity
2,018	30,000,000
2,018		111,250,000
2,019	60,000,000	60,000,000
2,020	50,000,000	50,000,000
2,021	40,000,000	20,000,000
2,022	5,000,000
2023 and thereafter	21,187,000	5,115,000
Total	206,187,000	246,365,000
Monthly principal and interest payment on amortizing advance	1,000	1,000
Redeemable at Call Date
2,018	35,000,000
2,018		111,250,000
2,019	90,000,000	60,000,000
2,020	60,000,000	50,000,000
2,021	20,000,000	20,000,000
2023 and thereafter	1,187,000	5,115,000
Total	$ 206,187,000	$ 246,365,000
Weighted Average Rate
Weighted average rate	2.37%	1.50%
Weighted Average Rate
2,018	1.44%
2,018		1.47%
2,019	1.66%	1.66%
2,020	1.84%	1.84%
2,021	1.81%	1.79%
2,022	0.96%
2023 and thereafter	1.03%	0.65%
Total	1.62%	1.60%
FHLB advances, callable
Scheduled Maturity
Total		$ 0

FHLB BORROWINGS - Others (Detai

FHLB BORROWINGS - Others (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Federal Reserve Bank of Boston
Borrowed funds
Percentage of carrying value pledged as collateral	75.00%
Amortized borrowing capacity	$ 84,600,000	$ 136,100,000
Amount outstanding	$ 0	$ 0
Federal Home Loan Bank Advances | First mortgage loans on owner-occupied residential property
Borrowed funds
Percentage of carrying value pledged as collateral on FHLB advances	81.00%

SUBORDINATED DEBENTURES (Detail

SUBORDINATED DEBENTURES (Details) - Subordinated Notes due 2028 - USD ($) $ in Millions	Aug. 30, 2018	Sep. 30, 2018
Notes issued	$ 35
Annual fixed interest rate	5.625%
Issuance costs		$ 1.1
LIBOR
Basis points	278.00%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Deferred tax (benefit) provision:
Income tax provision	$ 818,000	$ 1,699,000	$ 2,577,000	$ 5,133,000
Effective tax rate	12.13%	37.45%	18.59%	36.88%
Tax refund	$ 826,000		$ 826,000

OTHER COMMITMENTS AND CONTING_3

OTHER COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Commitments to grant loans
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	$ 44,106	$ 86,790
Unadvanced funds on home equity lines of credit
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	78,988	77,117
Unadvanced funds on revolving lines of credit
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	102,698	71,151
Unadvanced funds on construction loans
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	$ 134,126	$ 144,918

DERIVATIVES (Details)

DERIVATIVES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Derivative disclosures
Gain (loss) on interest rate derivative instruments not designated as hedging instrument	$ 361,000	$ (50,000)	$ 642,000	$ (440,000)
Not designated as hedging instruments | Other assets
Derivative disclosures
Fair Value, Assets	6,389,000		6,389,000		$ 3,246,000
Not designated as hedging instruments | Other liabilities
Derivative disclosures
Fair Value, Liabilities	4,773,000		$ 4,773,000		2,272,000
Commitments to grant loans
Derivative disclosures
Loan commitment specified period			60 days
Commitments to grant loans | Mortgage banking income
Derivative disclosures
Gain (loss) on interest rate derivative instruments not designated as hedging instrument	(358,000)	30,000	$ 247,000	430,000
Commitments to grant loans | Not designated as hedging instruments
Derivative disclosures
Notional Amount	89,381,000		89,381,000		81,604,000
Commitments to grant loans | Not designated as hedging instruments | Other assets
Derivative disclosures
Fair Value, Assets	1,280,000		1,280,000		1,047,000
Commitments to grant loans | Not designated as hedging instruments | Other liabilities
Derivative disclosures
Fair Value, Liabilities	13,000		13,000		27,000
Forward loan sale commitments | Mortgage banking income
Derivative disclosures
Gain (loss) on interest rate derivative instruments not designated as hedging instrument	719,000	$ (80,000)	395,000	$ (870,000)
Forward loan sale commitments | Not designated as hedging instruments
Derivative disclosures
Notional Amount	92,776,000		92,776,000		95,680,000
Forward loan sale commitments | Not designated as hedging instruments | Other assets
Derivative disclosures
Fair Value, Assets	368,000		368,000		46,000
Forward loan sale commitments | Not designated as hedging instruments | Other liabilities
Derivative disclosures
Fair Value, Liabilities	19,000		19,000		92,000
Interest rate swaps
Derivative disclosures
Securities pledged to secure the Company's liability for the offsetting interest rate swaps	0		0
Interest rate swaps | Not designated as hedging instruments
Derivative disclosures
Notional Amount	293,869,000		293,869,000		246,704,000
Interest rate swaps | Not designated as hedging instruments | Other assets
Derivative disclosures
Fair Value, Assets	4,741,000		4,741,000		2,153,000
Interest rate swaps | Not designated as hedging instruments | Other liabilities
Derivative disclosures
Fair Value, Liabilities	4,741,000		4,741,000		2,153,000
Risk Participation Agreements | Not designated as hedging instruments
Derivative disclosures
Notional Amount	$ 83,987,000		$ 83,987,000		$ 42,856,000

COMPENSATION AND BENEFIT PLAN_2

COMPENSATION AND BENEFIT PLANS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Jun. 29, 2016
COMPENSATION AND BENEFIT PLANS
Shares committed per year	59,359		59,359
Allocated shares	118,719		118,719		59,359
Shares committed to be allocated	44,520	44,520	44,520	44,520	59,359
Unallocated shares	1,023,949		1,023,949		1,068,470
Total shares	1,187,188		1,187,188		1,187,188	1,187,188
Fair value of unallocated shares, end of period	$ 19,578,000		$ 19,578,000		$ 20,472,000
ESOP compensation expense	$ 283,000	$ 275,000	$ 836,000	$ 857,000

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - shares	Sep. 26, 2018	Aug. 09, 2017	Sep. 30, 2018
STOCK-BASED COMPENSATION
Shares reserved for issuance		2,077,577
Stock Options
STOCK-BASED COMPENSATION
Shares reserved for issuance		1,483,984
Contractual term of awards		10 years
Granted			13,062
Restricted Stock
STOCK-BASED COMPENSATION
Shares reserved for issuance		593,593
Vesting period (years)		3 years
Executive | Stock Options
STOCK-BASED COMPENSATION
Vesting period (years)	3 years
Granted	13,062

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock options (Details) - Stock Options - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Fair value of option assumptions
Expected volatility			24.00%
Expected life (years)			6 years
Risk free interest rate			2.98%
Fair value per option	$ 5.78		$ 5.78
Stock Option Awards
Balance at the beginning of the period			883,311
Granted			13,062
Forfeited or expired			(30,917)
Balance at the end of the period	865,456		865,456		883,311
Exercisable at end of the period	226,709		226,709
Unrecognized cost inclusive of directors' awards	$ 2,727,000		$ 2,727,000
Weighted average remaining recognition period (years)			1 year 10 months 17 days
Overstated options granted in previous period (in shares)	442,752
Weighted Average Exercise Price
Balance at the beginning of the period			$ 18.35
Granted			19.03
Forfeited or expired			18.35
Balance at the end of the period	$ 18.36		18.36		$ 18.35
Exercisable at end of the period	$ 18.35		$ 18.35
Weighted Average Remaining Contractual Term (years)
Granted			10 years
Weighted average remaining contractual term, balance (years)			8 years 8 months 23 days		9 years 1 month 17 days
Exercisable at end of the period			8 years 5 months 9 days
Aggregate Intrinsic Value
Balance at the end of the period	$ 666,401		$ 666,401
Other stock-based compensation
Decrease in share-based compensation expenses due to clerical error in awards granted	286,000
Stock based compensation expense		$ 282,000	822,000	$ 282,000
Recognized tax benefit related to stock based compensation expense		$ 99,000	$ 173,000	$ 99,000
Reversal of recognized tax benefit related to stock based compensation expense due to clerical error in awards granted	$ 223,000

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock (Details) - Restricted Stock - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Outstanding Restricted Stock Awards
Non-vested stock awards, beginning balance			541,415
Vested			(180,465)
Granted			4,900
Forfeited			(12,367)
Non-vested stock awards, ending balance	353,483		353,483
Unrecognized cost inclusive of directors' awards	$ 6,093,000		$ 6,093,000
Weighted average remaining recognition period (years)			1 year 10 months 17 days
Weighted Average Grant Price
Non-vested stock awards, beginning balance			$ 18.35
Vested			18.35
Granted			19.03
Forfeited			18.35
Non-vested stock awards, ending balance	$ 18.36		$ 18.36
Other stock-based compensation
Stock based compensation expense	$ 833,000	$ 417,000	$ 2,500,000	$ 417,000
Recognized tax benefit related to stock based compensation expense	$ 125,000	$ 146,000	$ 519,000	$ 146,000

MINIMUM REGULATORY CAPITAL RE_3

MINIMUM REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity Tier 1 capital conversation buffer ratio	2.50%
Applicable capital conversation buffer ratio	1.875%
Common equity Tier 1 to risk-weighted assets [Abstract]
Actual, Capital amount	$ 344,495	$ 330,514
Actual, Ratio (as a percent)	14.80%	15.10%
Minimum Requirement for Capital Adequacy Purposes	$ 105,041	$ 98,292
Minimum Requirement for Capital Adequacy Purposes (as a percent)	4.50%	4.50%
Tier 1 capital to risk weighted assets
Actual, Capital amount	$ 344,495	$ 330,514
Actual, Ratio (as a percent)	14.80%	15.10%
Minimum Requirement for Capital Adequacy Purposes	$ 140,054	$ 131,056
Minimum Requirement for Capital Adequacy Purposes (as a percent)	6.00%	6.00%
Total capital to risk-weighted assets
Actual, Capital amount	$ 363,934	$ 349,002
Actual, Ratio (as a percent)	15.60%	16.00%
Minimum Requirement for Capital Adequacy Purposes	$ 186,739	$ 174,741
Minimum Requirement for Capital Adequacy Purposes (as a percent)	8.00%	8.00%
Tier 1 capital to average assets
Actual, Capital amount	$ 344,495	$ 330,514
Actual, Ratio (as a percent)	12.20%	12.50%
Minimum Requirement for Capital Adequacy Purposes	$ 112,624	$ 105,423
Minimum Requirement for Capital Adequacy Purposes (as a percent)	4.00%	4.00%
HarborOne Bank
Common equity Tier 1 to risk-weighted assets [Abstract]
Actual, Capital amount	$ 264,502	$ 249,532
Actual, Ratio (as a percent)	11.30%	11.40%
Minimum Requirement for Capital Adequacy Purposes	$ 104,987	$ 98,266
Minimum Requirement for Capital Adequacy Purposes (as a percent)	4.50%	4.50%
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions	$ 151,649	$ 141,939
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions (as a percent)	6.50%	6.50%
Tier 1 capital to risk weighted assets
Actual, Capital amount	$ 264,502	$ 249,532
Actual, Ratio (as a percent)	11.30%	11.40%
Minimum Requirement for Capital Adequacy Purposes	$ 139,983	$ 131,021
Minimum Requirement for Capital Adequacy Purposes (as a percent)	6.00%	6.00%
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions	$ 186,644	$ 174,695
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions (as a percent)	8.00%	8.00%
Total capital to risk-weighted assets
Actual, Capital amount	$ 283,942	$ 268,021
Actual, Ratio (as a percent)	12.20%	12.30%
Minimum Requirement for Capital Adequacy Purposes	$ 186,644	$ 174,695
Minimum Requirement for Capital Adequacy Purposes (as a percent)	8.00%	8.00%
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions	$ 233,306	$ 218,368
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions (as a percent)	10.00%	10.00%
Tier 1 capital to average assets
Actual, Capital amount	$ 264,502	$ 249,532
Actual, Ratio (as a percent)	9.40%	9.60%
Minimum Requirement for Capital Adequacy Purposes	$ 112,428	$ 104,264
Minimum Requirement for Capital Adequacy Purposes (as a percent)	4.00%	4.00%
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions	$ 140,535	$ 130,329
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions (as a percent)	5.00%	5.00%

COMPREHENSIVE INCOME (LOSS) (De

COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Components of AOCI
Accumulated other comprehensive income (loss)	$ (4,904)	$ (528)
Securities available for sale
Components of AOCI
AOCI prior to tax impact	(6,287)	(811)
Related tax effect	1,383	283
Accumulated other comprehensive income (loss)	$ (4,904)	$ (528)

COMPREHENSIVE INCOME (LOSS) - C

COMPREHENSIVE INCOME (LOSS) - Changes in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period			$ 343,484	$ 329,384
Reclassification adjustment for amortization of prior service cost		$ 60		181
Balance, end of period	$ 353,345	340,601	353,345	340,601
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period		(568)	(528)	(1,290)
Other comprehensive income (loss) before reclassifications		180		1,155
Reclassification adjustment for amortization of prior service cost		60		181
Stranded effect of tax rate changes (Note 1)			(104)
Net current period other comprehensive income (loss)		240		1,336
Related tax effect		(87)		(461)
Balance, end of period	(4,904)	(415)	(4,904)	(415)
Securities available for sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	(3,733)	(30)	(528)	(665)
Other comprehensive income (loss) before reclassifications	(1,501)	180	(5,476)	1,155
Stranded effect of tax rate changes (Note 1)			(104)
Net current period other comprehensive income (loss)	(1,501)	180	(5,580)	1,155
Related tax effect	330	(63)	1,204	(403)
Balance, end of period	$ (4,904)	87	$ (4,904)	87
Directors' retirement plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period		(538)		(625)
Reclassification adjustment for amortization of prior service cost		60		181
Net current period other comprehensive income (loss)		60		181
Related tax effect		(24)		(58)
Balance, end of period		$ (502)		$ (502)

FAIR VALUE OF ASSETS AND LIAB_3

FAIR VALUE OF ASSETS AND LIABILITIES - Loans held for sale - (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Fair value and contractual principal outstanding:
Loans held for sale, fair value	$ 155,268,000	$ 59,460,000
Loans held for sale, contractual principal outstanding	153,927,000	57,575,000
Fair value less unpaid principal balance	1,341,000	1,885,000
90 Days or More
Loans held for sale	$ 0	$ 0

FAIR VALUE OF ASSETS AND LIAB_4

FAIR VALUE OF ASSETS AND LIABILITIES - Derivatives (Details)	Sep. 30, 2018	Dec. 31, 2017
Derivative loan commitments
Assets and liabilities measured on recurring basis
Weighted average pull-through rate	87.00%	87.00%

FAIR VALUE OF ASSETS AND LIAB_5

FAIR VALUE OF ASSETS AND LIABILITIES - Recurring basis (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018USD ($)item	Dec. 31, 2017USD ($)item	Jun. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Assets and liabilities measured on recurring basis
Number of transfers | item	0	0
Assets
Securities available for sale	$ 191,847	$ 170,853
Loans held for sale	155,268	59,460
Mortgage servicing rights	23,748	21,092	$ 22,832	$ 20,376	$ 20,313	$ 20,333
Recurring
Assets
Securities available for sale	191,847	170,853
Loans held for sale	155,268	59,460
Mortgage servicing rights	23,748	21,092
Assets, Fair Value Disclosure, Total	377,252	254,651
Liabilities
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total	4,773	2,272
Recurring | Derivative loan commitments
Assets
Derivative assets	1,280	1,047
Liabilities
Derivative liabilities	13	27
Recurring | Forward loan sale commitments
Assets
Derivative assets	368	46
Liabilities
Derivative liabilities	19	92
Recurring | Interest rate swaps
Assets
Derivative assets	4,741	2,153
Liabilities
Derivative liabilities	4,741	2,153
Recurring | Level 2
Assets
Securities available for sale	191,847	170,853
Loans held for sale	155,268	59,460
Mortgage servicing rights	23,748	21,092
Assets, Fair Value Disclosure, Total	375,604	253,558
Liabilities
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total	4,741	2,153
Recurring | Level 2 | Interest rate swaps
Assets
Derivative assets	4,741	2,153
Liabilities
Derivative liabilities	4,741	2,153
Recurring | Level 3
Assets
Assets, Fair Value Disclosure, Total	1,648	1,093
Liabilities
Financial and Nonfinancial Liabilities, Fair Value Disclosure, Total	32	119
Recurring | Level 3 | Derivative loan commitments
Assets
Derivative assets	1,280	1,047
Liabilities
Derivative liabilities	13	27
Recurring | Level 3 | Forward loan sale commitments
Assets
Derivative assets	368	46
Liabilities
Derivative liabilities	$ 19	$ 92

FAIR VALUE OF ASSETS AND LIAB_6

FAIR VALUE OF ASSETS AND LIABILITIES - Level 3 (Details) - Derivative and Forward Loan Sale Commitments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Changes in Level 3 assets
Balance at beginning of period	$ 1,755	$ 1,994	$ 1,093	$ 2,722
Total gains (losses) included in net income	(107)	(67)	555	(795)
Balance at end of period	1,648	1,927	1,648	1,927
Changes in unrealized gains relating to instruments at period end	1,648	1,927	1,648	1,927
Changes in Level 3 liabilities
Balance at beginning of period	(500)	(238)	(119)	(576)
Total gains (losses) included in net income	468	17	87	355
Balance at end of period	(32)	(221)	(32)	(221)
Changes in unrealized losses relating to instruments at period end	$ (32)	$ (221)	$ (32)	$ (221)

FAIR VALUE OF ASSETS AND LIAB_7

FAIR VALUE OF ASSETS AND LIABILITIES - Impaired Loans (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Assets and liabilities measured on non-recurring basis
Total Losses	$ 455,000	$ 39,000	$ 583,000
Impaired loans
Assets and liabilities measured on non-recurring basis
Total Losses	444,000	34,000	525,000
Other real estate owned and repossessed assets
Assets and liabilities measured on non-recurring basis
Total Losses	$ 11,000	5,000	$ 58,000
Non-recurring
Assets and liabilities measured on non-recurring basis
Fair value		0		$ 0
Non-recurring | Level 3
Assets and liabilities measured on non-recurring basis
Fair value		3,043,000		4,039,000
Non-recurring | Level 3 | Impaired loans
Assets and liabilities measured on non-recurring basis
Fair value		2,371,000		3,277,000
Non-recurring | Level 3 | Other real estate owned and repossessed assets
Assets and liabilities measured on non-recurring basis
Fair value		$ 672,000		$ 762,000

FAIR VALUE OF ASSETS AND LIAB_8

FAIR VALUE OF ASSETS AND LIABILITIES - Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Financial assets:
Cash and cash equivalents	$ 95,097		$ 80,791
Securities available for sale	191,847		170,853
Securities held to maturity, at amortized cost	47,371		46,869
Federal Home Loan Bank stock	13,263		15,532
Loans held for sale	155,268		59,460
Loans, net	2,204,382		2,176,478
Retirement plan annuities	12,830		12,498
Mortgage servicing rights	23,748	$ 22,832	21,092	$ 20,376	$ 20,313	$ 20,333
Accrued interest receivable	7,452		6,545
Financial liabilities:
Deposits	2,185,641		2,013,738
Mortgagors' escrow accounts	4,655		5,221
Accrued interest payable	622		518
Carrying Amount
Financial assets:
Cash and cash equivalents	95,097		80,791
Securities available for sale	191,847		170,583
Securities held to maturity, at amortized cost	47,371		46,869
Federal Home Loan Bank stock	13,263		15,532
Loans held for sale	155,268		59,460
Loans, net	2,204,382		2,176,478
Retirement plan annuities	12,830		12,498
Mortgage servicing rights	23,748		21,092
Accrued interest receivable	7,452		6,545
Financial liabilities:
Deposits	2,185,641		2,013,738
Borrowed funds	265,042		290,365
Mortgagors' escrow accounts	4,655		5,221
Accrued interest payable	622		518
Carrying Amount | Derivative loan commitments
Derivative commitments/agreements:
Assets	1,280		1,047
Liabilities	13		27
Carrying Amount | Interest rate swaps
Derivative commitments/agreements:
Assets	4,741		2,153
Liabilities	4,741		2,153
Carrying Amount | Forward loan sale commitments
Derivative commitments/agreements:
Assets	368		46
Liabilities	19		92
Fair Value
Financial assets:
Cash and cash equivalents	95,097		80,791
Securities available for sale	191,847		170,853
Securities held to maturity, at amortized cost	47,065		47,674
Federal Home Loan Bank stock	13,263		15,532
Loans held for sale	155,268		59,460
Loans, net	2,177,544		2,175,423
Retirement plan annuities	12,830		12,498
Mortgage servicing rights	23,748		21,092
Accrued interest receivable	7,452		6,545
Financial liabilities:
Deposits	2,180,590		2,010,052
Borrowed funds	228,632		288,939
Mortgagors' escrow accounts	4,655		5,221
Accrued interest payable	622		518
Fair Value | Derivative loan commitments
Derivative commitments/agreements:
Assets	1,280		1,047
Liabilities	13		27
Fair Value | Interest rate swaps
Derivative commitments/agreements:
Assets	4,741		2,153
Liabilities	4,741		2,153
Fair Value | Forward loan sale commitments
Derivative commitments/agreements:
Assets	368		46
Liabilities	19		92
Fair Value | Level 1
Financial assets:
Cash and cash equivalents	95,097		80,791
Fair Value | Level 2
Financial assets:
Securities available for sale	191,847		170,853
Securities held to maturity, at amortized cost	47,065		47,674
Loans held for sale	155,268		59,460
Mortgage servicing rights	23,748		21,092
Accrued interest receivable	7,452		6,545
Financial liabilities:
Borrowed funds	228,632		288,939
Accrued interest payable	622		518
Fair Value | Level 2 | Interest rate swaps
Derivative commitments/agreements:
Assets	4,741		2,153
Liabilities	4,741		2,153
Fair Value | Level 3
Financial assets:
Federal Home Loan Bank stock	13,263		15,532
Loans, net	2,177,544		2,175,423
Retirement plan annuities	12,830		12,498
Financial liabilities:
Deposits	2,180,590		2,010,052
Mortgagors' escrow accounts	4,655		5,221
Fair Value | Level 3 | Derivative loan commitments
Derivative commitments/agreements:
Assets	1,280		1,047
Liabilities	13		27
Fair Value | Level 3 | Forward loan sale commitments
Derivative commitments/agreements:
Assets	368		46
Liabilities	$ 19		$ 92

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
EARNINGS PER SHARE
Net income applicable to common stock	$ 5,928	$ 2,838	$ 11,283	$ 8,786
Average number of common shares outstanding	32,604,157	32,391,588	32,618,973	32,212,107
Less: Average unallocated ESOP shares	(1,028,947)	(1,088,307)	(1,044,292)	(1,103,003)
Average number of common shares outstanding used to calculate basic earnings per common share	31,575,210	31,303,281	31,574,681	31,109,104
Common stock equivalents	601		200
Average number of common shares outstanding used to calculate diluted earnings per common share	31,575,811	31,303,281	31,574,881	31,109,104
Earnings per common share, Basic	$ 0.19	$ 0.09	$ 0.36	$ 0.28
Earnings per common share, Diluted	$ 0.19	$ 0.09	$ 0.36	$ 0.28
Stock Options
EARNINGS PER SHARE
Antidilutive securities excluded from computation of earnings per share	791,257		791,257

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)segment	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Segment Reporting Information
Number of reportable segments | segment			2
Net interest and dividend income	$ 21,121	$ 19,269	$ 62,140	$ 54,916
Provision for loan losses	632	921	2,326	1,656
Net interest income, after provision for loan losses	20,489	18,348	59,814	53,260
Total assets at period end	2,852,800	2,659,459	2,852,800	2,659,459	$ 2,684,920
Goodwill at period end	13,660	13,365	13,660	13,365
Mortgage banking income:
Changes in mortgage servicing rights fair value	(378)	(488)	338	(1,982)
Other	9,249	11,071	24,275	30,117
Total mortgage banking income	8,871	10,583	24,613	28,135
Other noninterest income	4,769	4,044	12,933	12,245
Total noninterest income	13,640	14,627	37,546	40,380
Noninterest expense	27,383	28,438	83,500	79,721
Income (loss) before income taxes	6,746	4,537	13,860	13,919
Provision (benefit) for income taxes	818	1,699	2,577	5,133
Net income	5,928	2,838	11,283	8,786
Operating Segments | HarborOne Bank Segment
Segment Reporting Information
Net interest and dividend income	20,943	18,731	61,429	53,573
Provision for loan losses	632	921	2,326	1,656
Net interest income, after provision for loan losses	20,311	17,810	59,103	51,917
Total assets at period end	2,855,386	2,591,620	2,855,386	2,591,620
Goodwill at period end	3,186	3,186	3,186	3,186
Mortgage banking income:
Changes in mortgage servicing rights fair value	(59)	(170)	60	(723)
Other	720	834	1,599	2,476
Total mortgage banking income	661	664	1,659	1,753
Other noninterest income	4,785	4,034	12,922	12,226
Total noninterest income	5,446	4,698	14,581	13,979
Noninterest expense	18,824	18,716	58,975	53,931
Income (loss) before income taxes	6,933	3,792	14,709	11,965
Provision (benefit) for income taxes	888	1,393	2,825	4,342
Net income	6,045	2,399	11,884	7,623
Operating Segments | HarborOne Mortgage Segment
Segment Reporting Information
Net interest and dividend income	308	487	739	1,251
Net interest income, after provision for loan losses	308	487	739	1,251
Total assets at period end	95,423	133,534	95,423	133,534
Goodwill at period end	10,474	10,179	10,474	10,179
Mortgage banking income:
Changes in mortgage servicing rights fair value	(319)	(318)	278	(1,259)
Other	8,529	10,237	22,676	27,641
Total mortgage banking income	8,210	9,919	22,954	26,382
Other noninterest income	(16)	10	11	19
Total noninterest income	8,194	9,929	22,965	26,401
Noninterest expense	8,184	9,457	23,320	25,420
Income (loss) before income taxes	318	959	384	2,232
Provision (benefit) for income taxes	71	392	98	902
Net income	247	567	286	1,330
Operating Segments | HarborOne Bancorp Segment
Segment Reporting Information
Net interest and dividend income	(130)	51	(28)	92
Net interest income, after provision for loan losses	(130)	51	(28)	92
Total assets at period end	387,427	340,930	387,427	340,930
Mortgage banking income:
Noninterest expense	375	265	1,205	370
Income (loss) before income taxes	(505)	(214)	(1,233)	(278)
Provision (benefit) for income taxes	(141)	(86)	(346)	(111)
Net income	(364)	(128)	(887)	(167)
Eliminations
Segment Reporting Information
Total assets at period end	$ (485,436)	$ (406,625)	$ (485,436)	$ (406,625)