HarborOne Bancorp (HONE) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	HarborOne Bancorp, Inc.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001769617
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		58,429,584
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and due from banks		$ 27,758	$ 27,686
Short-term investments		210,873	77,835
Total cash and cash equivalents		238,631	105,521
Securities available for sale, at fair value		204,133	209,293
Securities held to maturity, at amortized cost		27,099	44,688
Federal Home Loan Bank stock, at cost		13,466	24,969
Loans held for sale, at fair value		102,121	42,107
Loans		3,112,264	2,985,507
Less: Allowance for loan losses		(23,044)	(20,655)
Net loans		3,089,220	2,964,852
Accrued interest receivable		9,835	9,996
Other real estate owned and repossessed assets		377	749
Mortgage servicing rights, at fair value		16,067	22,217
Property and equipment, net		56,997	57,045
Retirement plan annuities		13,231	12,931
Bank-owned life insurance		45,391	44,635
Deferred income taxes, net		5,530	6,727
Goodwill and other intangible assets		76,117	78,467
Other assets		50,805	28,924
Total assets		3,949,020	3,653,121
Deposits:
Noninterest-bearing deposits		446,432	412,906
Interest-bearing deposits		2,411,602	2,194,647
Brokered deposits		66,474	77,508
Total deposits		2,924,508	2,685,061
Short-term borrowed funds		60,000	290,000
Long-term borrowed funds		211,140	229,936
Subordinated debt		33,875	33,799
Mortgagors' escrow accounts		6,251	4,551
Accrued interest payable		806	1,611
Other liabilities and accrued expenses		52,886	50,589
Total liabilities		3,289,466	3,295,547
Commitments and contingencies (Notes 10 and 11)
Common stock, $0.01 par value; 150,000,000 shares authorized; 58,500,785 and 58,612,149 shares issued; 58,429,584 and 58,465,505 shares outstanding at September 30, 2019 and December 31, 2018, respectively	[1]	584	327
Additional paid-in capital		458,599	152,156
Retained earnings		233,049	219,088
Treasury stock, at cost, 71,201 and 146,644 shares at September 30, 2019 and December 31, 2018, respectively	[1]	(721)	(1,548)
Accumulated other comprehensive income (loss)		1,881	(2,358)
Unearned compensation - ESOP		(33,838)	(10,091)
Total stockholders' equity		659,554	357,574
Total liabilities and stockholders' equity		$ 3,949,020	$ 3,653,121
[1]	Share amounts related to periods prior to the August 14, 2019 closing of the conversion offering have been restated to give retroactive recognition to the 1.795431 exchange ratio applied in the conversion offering.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	150,000,000	150,000,000
Common Stock, shares issued	58,500,785	58,612,149
Common stock, shares outstanding	58,429,584	58,465,505
Treasury, shares	71,201	146,644

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest and dividend income:
Interest and fees on loans		$ 36,230	$ 25,115	$ 106,033	$ 71,485
Interest on loans held for sale		747	625	1,647	1,557
Interest on taxable securities		1,450	1,412	4,816	4,042
Interest on non-taxable securities		92	217	423	650
Other interest and dividend income		1,211	480	2,142	1,051
Total interest and dividend income		39,730	27,849	115,061	78,785
Interest expense:
Interest on deposits		9,972	5,409	27,577	13,382
Interest on FHLB borrowings		1,249	1,130	5,203	3,074
Interest on subordinated debentures		524	189	1,553	189
Total interest expense		11,745	6,728	34,333	16,645
Net interest and dividend income		27,985	21,121	80,728	62,140
Provision for loan losses		889	632	3,496	2,326
Net interest and dividend income, after provision for loan losses		27,096	20,489	77,232	59,814
Mortgage banking income:
Changes in mortgage servicing rights fair value		(2,474)	(378)	(6,866)	338
Other		13,979	9,249	31,528	24,275
Total mortgage banking income		11,505	8,871	24,662	24,613
Deposit account fees		4,186	3,302	12,020	9,493
Income on retirement plan annuities		104	100	300	332
Gain on sale and call of securities, net		77		1,344
Bank-owned life insurance income		256	243	762	725
Other income		1,145	1,124	3,745	2,383
Total noninterest income		17,273	13,640	42,833	37,546
Noninterest expense:
Compensation and benefits		23,238	16,809	63,068	50,506
Occupancy and equipment		4,171	3,027	13,030	9,263
Data processing		2,196	1,702	6,441	4,824
Loan expenses		1,704	1,503	4,309	4,155
Marketing		799	639	2,934	2,722
Deposit expenses		405	308	1,189	965
Postage and printing		435	344	1,345	1,064
Professional fees		889	712	3,219	2,595
Foreclosed and repossessed assets		42	(45)	(34)	63
Deposit insurance		(225)	540	1,030	1,525
Merger expenses			274		1,284
Other expenses		2,549	1,570	7,345	4,534
Total noninterest expense		36,203	27,383	103,876	83,500
Income before income taxes		8,166	6,746	16,189	13,860
Income tax provision		1,053	818	2,228	2,577
Net income		$ 7,113	$ 5,928	$ 13,961	$ 11,283
Earnings per common share (1):
Basic earnings per share (in dollars per share)	[1]	$ 0.13	$ 0.10	$ 0.25	$ 0.20
Diluted earnings per share (in dollars per share)	[1]	$ 0.13	$ 0.10	$ 0.25	$ 0.20
Weighted average shares outstanding (1):
Weighted average shares outstanding basic	[1]	55,638,734	56,691,125	56,855,930	56,690,174
Weighted average shares outstanding diluted	[1]	55,638,734	56,692,204	56,855,930	56,690,533
[1]	Share amounts related to periods prior to the August 14, 2019 closing of the conversion offering have been restated to give retroactive recognition to the 1.795431 exchange ratio applied in the conversion offering.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 7,113	$ 5,928	$ 13,961	$ 11,283
Securities available for sale:
Unrealized holding gains (losses)	609	(1,501)	6,780	(5,476)
Reclassification adjustment for net realized gains	(77)		(1,344)
Net unrealized gains (losses)	532	(1,501)	5,436	(5,476)
Related tax effect	(117)	330	(1,197)	1,204
Net-of-tax amount	415	(1,171)	4,239	(4,272)
Comprehensive income	$ 7,528	$ 4,757	$ 18,200	$ 7,011

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Comprehensive Income
Tax expense on realized gains	$ 22,000		$ 377,000
Realized gains		$ 0		$ 0

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 Income (Loss)	Unearned Compensation - ESOP	Total
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	[1]	58,616,160
Comprehensive income (loss)					11,283		(4,272)		7,011
Reclassification of stranded effect of tax rate change					104		(104)
ESOP shares committed to be released (in shares)				390				446	836
Restricted stock awards granted, net of awards forfeited (in shares)	[1]	8,797
Share-based compensation expense				3,282					3,282
Treasury stock purchased						(1,268)			(1,268)
Treasury stock purchased (in shares)	[1]	(119,891)
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	[1]	58,505,066
Balance, beginning of period at Jun. 30, 2018		$ 327		150,063	213,049	(742)	(3,733)	(10,388)	348,576
Balance, beginning of period (in shares) at Jun. 30, 2018	[1]	58,571,813
Comprehensive income (loss)					5,928		(1,171)		4,757
ESOP shares committed to be released (in shares)				134				149	283
Restricted stock awards granted, net of awards forfeited (in shares)	[1]	8,797
Share-based compensation expense				535					535
Treasury stock purchased						(806)			(806)
Treasury stock purchased (in shares)	[1]	(75,544)
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	[1]	58,505,066
Balance, beginning of period at Dec. 31, 2018		$ 327		152,156	219,088	(1,548)	(2,358)	(10,091)	$ 357,574
Balance, beginning of period (in shares) at Dec. 31, 2018		58,465,505	[1]						58,465,505
Comprehensive income (loss)					13,961		4,239		$ 18,200
Conversion of HarborOne Bancorp, Inc.		$ 257		303,854					304,111
Conversion of HarborOne Bancorp, Inc. (in shares)	[1]	8,760
Purchase of shares by the ESOP								(24,830)	(24,830)
Treasury stock retired				(1,548)		1,548
Contribution of HarborOne Bancorp Mutual Bancshares				99					99
ESOP shares committed to be released (in shares)				370				1,083	1,453
Restricted stock awards granted, net of awards forfeited (in shares)	[1]	26,520
Share-based compensation expense				3,668					3,668
Treasury stock purchased						(721)			(721)
Treasury stock purchased (in shares)	[1]	(71,201)
Balance, end of period at Sep. 30, 2019		$ 584		458,599	233,049	(721)	1,881	(33,838)	$ 659,554
Balance, end of period (in shares) at Sep. 30, 2019		58,429,584	[1]						58,429,584
Balance, beginning of period at Jun. 30, 2019		$ 327		154,730	225,936	(1,548)	1,466	(9,793)	$ 371,118
Balance, beginning of period (in shares) at Jun. 30, 2019	[1]	58,483,025
Comprehensive income (loss)					7,113		415		7,528
Conversion of HarborOne Bancorp, Inc.		$ 257		303,854					304,111
Conversion of HarborOne Bancorp, Inc. (in shares)	[1]	8,760
Purchase of shares by the ESOP								(24,830)	(24,830)
Treasury stock retired				(1,548)		1,548
Contribution of HarborOne Bancorp Mutual Bancshares				99					99
ESOP shares committed to be released (in shares)				158				785	943
Restricted stock awards granted, net of awards forfeited (in shares)	[1]	9,000
Share-based compensation expense				1,306					1,306
Treasury stock purchased						(721)			(721)
Treasury stock purchased (in shares)	[1]	(71,201)
Balance, end of period at Sep. 30, 2019		$ 584		$ 458,599	$ 233,049	$ (721)	$ 1,881	$ (33,838)	$ 659,554
Balance, end of period (in shares) at Sep. 30, 2019		58,429,584	[1]						58,429,584
[1]	Share amounts related to periods prior to the August 14, 2019 closing of the conversion offering have been restated to give retroactive recognition to the 1.795431 exchange ratio applied in the conversion offering.

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Changes in Stockholders’ Equity
ESOP shares committed to be released	78,588	14,840	108,268	29,680
Conversion costs	$ 6.3		$ 6.3
Shares purchased by the ESOP	2,482,945		2,482,945

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 13,961	$ 11,283
Adjustments to reconcile net income to net cash used by operating activities:
Provision for loan losses	3,496	2,326
Net amortization of securities premiums/discounts	196	432
Net amortization of net deferred loan costs/fees and premiums	2,152	2,604
Depreciation and amortization of premises and equipment	3,296	2,174
Change in mortgage servicing rights fair value	6,866	(338)
Mortgage servicing rights capitalized	(716)	(1,268)
Amortization of consumer servicing rights	22	35
Accretion of fair value adjustment on loans and deposits, net	(1,800)	(247)
Amortization of other intangible assets	1,897	35
Amortization of subordinated debt issuance costs	76
Gain on sale of securities, net	(1,344)
Bank-owned life insurance income	(762)	(725)
Income on retirement plan annuities	(300)	(332)
Fair value adjustment gain on loans transferred to held for sale		(472)
Net gain on sale and write-down of other real estate owned and repossessed assets	(94)	(36)
ESOP expense	1,453	836
Share-based compensation expense	3,668	3,282
Net change in:
Loans held for sale	(60,014)	8,965
Other assets and liabilities, net	(19,790)	6,861
Net cash (used) provided by operating activities	(47,737)	35,415
Activity in securities available for sale:
Maturities, prepayments and calls	38,786	18,292
Purchases	(55,369)	(44,943)
Sales	28,391
Activity in securities held to maturity:
Maturities, prepayment and calls	17,525	2,243
Purchases		(2,996)
Net redemption of FHLB stock	11,503	2,269
Participation-in loan purchases	(28,931)	(71,699)
Loan originations, net of principal payments	(100,226)	(67,500)
Proceeds from sale of other real estate owned and repossessed assets	2,145	1,343
Additions to property and equipment	(3,248)	(2,864)
Cash received in MHC merger	99
Net cash used by investing activities	(89,325)	(165,855)
Cash flows from financing activities:
Net increase in deposits	238,708	171,903
Net change in borrowed funds with maturities less than ninety days	(230,000)	(19,000)
Proceeds from other borrowed funds and subordinated debt	21,220	74,930
Repayment of other borrowed funds	(40,016)	(81,253)
Net change in mortgagors' escrow accounts	1,700	(566)
Purchase of shares by the ESOP	(24,830)
Treasury stock purchased	(721)	(1,268)
Gross proceeds from sale of common stock	304,111
Net cash provided by financing activities	270,172	144,746
Net change in cash and cash equivalents	133,110	14,306
Cash and cash equivalents at beginning of period	105,521	80,791
Cash and cash equivalents at end of period	238,631	95,097
Supplemental cash flow information:
Interest paid on deposits	27,654	13,348
Interest paid on borrowed funds	7,531	3,170
Income taxes paid, net	2,341	1,826
Transfer of loans to other real estate owned and repossessed assets	$ 1,680	1,261
Transfer of loans to loans held for sale		$ 105,351

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2019
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, 2018 and 2017 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, a passive investment corporation 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. The passive investment corporation maintains and manages certain assets of the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. Conversion and Reorganization On August 14, 2019 the Company completed a second step conversion offering (the “Offering”). Prior to the completion of the Offering approximately 53% of the shares of common stock of the Company were owned by HarborOne Mutual Bancshares, a mutual holding company (the ”MHC”). The Company raised gross proceeds of $310.4 million and incurred expenses of $6.3 million resulting in net cash proceeds of $304.1 million by selling 31,036,812 shares of common stock at $10.00 per share in the Offering. In addition, each share of the Company common stock owned by shareholders, other than the MHC, prior to the Offering was exchanged for 1.795431 shares of Company common stock, a total of 12,162,763 shares of Company common stock were issued in the exchange. The Company utilized $24.8 million to fund an additional ESOP loan, invested $151.3 million into the Bank’s operations, and retained the remaining amount for general corporate purposes. As a result of the Offering, all shares and per share information has been revised to reflect the 1.795431 exchange ratio. Such revised financial information presented in this Form 10-Q is derived from the consolidated financial statements of the Company. Business Combination Effective October 5, 2018, the Company completed the acquisition of Coastway Bancorp, Inc. (“Coastway”) the holding company of Coastway Community Bank in an all cash transaction valued at approximately $125.6 million, with $835.1 million in total assets, $736.2 million in gross loans and $478.3 million in deposits. Nature of Operations The Company provides a variety of financial services to individuals and businesses through its 24 full-service branches in Massachusetts and Rhode Island, one limited-service bank branch, and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. HarborOne Mortgage maintains more than 30 offices in Massachusetts, Rhode Island, New Hampshire, Maine, and New Jersey and is also licensed to lend in four 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, commercial construction 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 2018 or the nine months ended September 30, 2019. 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. Residential construction –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 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. Commercial construction –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. 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, 2019, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. The Company’s emerging growth company status is scheduled to end December 31, 2021 unless a triggering event occurs sooner. 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. For non-public entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. 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. For non-public entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this standard is not expected to have a material effect on the Company’s Consolidated Financial Statements. 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. For non-public entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. 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, 2021, including interim periods within those fiscal years. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company continues to evaluate the impact of this ASU on the consolidated financial statements and disclosures. The Company has formed a cross functional working group and is currently working through its implementation plan which includes assessment and documentation of processes, internal controls, and data sources; model development and documentation; and implementation of a third-party vendor solution to assist in the application of this ASU. 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 Income, 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 were 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 adoption of this ASU 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 was 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 15, 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. The Company adopted the updated guidance using the modified retrospective approach effective January 1, 2019, with no material impact on its Consolidated Financial Statements.

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 2019
SECURITIES
SECURITIES	2. 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, 2019: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 22,995 $ 237 $ — $ 23,232 U.S. government agency and government-sponsored residential mortgage-backed securities 118,206 1,443 207 119,442 U.S. government-sponsored collateralized mortgage obligations 27,528 316 13 27,831 SBA asset-backed securities 32,991 637 — 33,628 Total securities available for sale $ 201,720 $ 2,633 $ 220 $ 204,133 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ 13,323 $ 94 $ 6 $ 13,411 U.S. government-sponsored collateralized mortgage obligations 1,516 77 — 1,593 SBA asset-backed securities 5,309 173 — 5,482 Municipal bonds 6,951 299 — 7,250 Total securities held to maturity $ 27,099 $ 643 $ 6 $ 27,736 December 31, 2018: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 27,997 $ 71 $ 527 $ 27,541 U.S. government agency and government-sponsored residential mortgage-backed securities 105,340 335 1,658 104,017 U.S. government-sponsored collateralized mortgage obligations 31,293 — 365 30,928 SBA asset-backed securities 47,686 106 985 46,807 Total securities available for sale $ 212,316 $ 512 $ 3,535 $ 209,293 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ 15,025 $ 63 $ 481 $ 14,607 U.S. government-sponsored collateralized mortgage obligations 1,724 29 — 1,753 SBA asset-backed securities 5,818 42 41 5,819 Municipal bonds 22,121 406 — 22,527 Total securities held to maturity $ 44,688 $ 540 $ 522 $ 44,706 Nine mortgage-backed securities with a combined fair value of $23.7 million are pledged as collateral for interest rate swap agreements as of September 30, 2019 (see Note 11). There were no securities pledged as collateral as of December 31, 2018. The amortized cost and fair value of debt securities by contractual maturity at September 30, 2019 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 $ 22,995 $ 23,232 $ 1,152 $ 1,252 Over 10 years — — 5,799 5,998 22,995 23,232 6,951 7,250 U.S. government agency and government-sponsored residential mortgage-backed securities 118,206 119,442 13,323 13,411 U.S. government-sponsored collateralized mortgage obligations 27,528 27,831 1,516 1,593 SBA asset-backed securities 32,991 33,628 5,309 5,482 Total $ 201,720 $ 204,133 $ 27,099 $ 27,736 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 two to 27 years; however, it is expected that such securities will have shorter actual lives due to prepayments. The following table shows proceeds and gross realized gains and losses related to the sales and calls of securities for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Sales Proceeds (1) $ — $ — $ 28,391 $ — Gross gains — — 1,267 — Gross losses — — — — Calls Proceeds (1) $ 11,775 $ — $ 20,145 $ — Gross gains 77 — 77 — Gross losses — — — — (1) For the nine months ended September 30, 2019, proceeds from sales consisted of six available for sale securities. Proceeds from calls consisted of seven and fifteen held to maturity securities for the three and nine months ended September 30, 2019, respectively, and one available for sale security for the three and nine months ended September 30, 2019. Information pertaining to securities with gross unrealized losses at September 30, 2019 and December 31, 2018 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, 2019: Securities available for sale U.S. government agency and government-sponsored residential mortgage-backed securities $ 83 $ 19,232 $ 124 $ 11,244 U.S. government-sponsored collateralized mortgage obligations — — 13 3,898 SBA asset-backed securities — 1,202 — — $ 83 $ 20,434 $ 137 $ 15,142 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ — $ — $ 6 $ 2,703 December 31, 2018: Securities available for sale U.S. government and government-sponsored enterprise obligations $ — $ — $ 527 $ 17,460 U.S. government agency and government-sponsored residential mortgage-backed securities 55 12,714 1,603 67,060 U.S. government-sponsored collateralized mortgage obligations — — 365 30,928 SBA asset-backed securities — — 985 36,860 $ 55 $ 12,714 $ 3,480 $ 152,308 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ — $ — $ 481 $ 12,938 SBA asset-backed securities — — 41 2,834 $ — $ — $ 522 $ 15,772 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, 2019, 15 securities with an amortized cost of $38.5 million have unrealized losses with aggregate depreciation of 0.59% 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, 2019.

LOANS HELD FOR SALE

LOANS HELD FOR SALE	9 Months Ended
	Sep. 30, 2019
LOANS HELD FOR SALE
LOANS HELD FOR SALE	3. At September 30, 2019 and December 31, 2018, 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, 2019 2018 (in thousands) Loans held for sale, fair value $ 102,121 $ 42,107 Loans held for sale, contractual principal outstanding 99,422 40,692 Fair value less unpaid principal balance $ 2,699 $ 1,415

LOANS

LOANS	9 Months Ended
	Sep. 30, 2019
LOANS
LOANS	4. A summary of the balances of loans follows: September 30, December 31, 2019 2018 (in thousands) Residential real estate: One- to four-family $ 946,792 $ 942,659 Second mortgages and equity lines of credit 152,494 158,138 Residential real estate construction 14,418 14,659 Commercial real estate 1,088,036 934,420 Commercial construction 160,549 161,660 Total mortgage loans on real estate 2,362,289 2,211,536 Commercial 298,652 277,271 Consumer loans: Auto 434,047 478,863 Personal 11,484 12,582 Total consumer loans 445,531 491,445 Total loans 3,106,472 2,980,252 Net deferred loan costs 5,792 5,255 Allowance for loan losses (23,044) (20,655) Loans, net $ 3,089,220 $ 2,964,852 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, 2019 and December 31, 2018, the Company was servicing loans for participants aggregating $158.7 million and $140.9 million, respectively. Acquired Loans The loans purchased from Coastway included $5.4 million in purchased credit impaired loans (“PCI”). The PCI loans were primarily residential real estate loans. The contractual amount outstanding and carrying value of these loans at September 30, 2019 were $4.8 million and $4.5 million, respectively. The expected cash flow of the pool is $4.7 million and the accretable yield is $164,000. During the three and nine months ended September 30, 2019, $30,000 and $76,000 was accreted into interest income, respectively. PCI loans are included in the Company’s impaired loan balances in the following tables. At September 30, 2019, $2.2 million of PCI loans are included in the delinquency table and $2.3 million are included in the nonaccrual table. At December 31, 2018, $2.2 million of PCI loans are were included in the delinquency table and $500,000 were included in the nonaccrual table. The following is the activity in the allowance for loan losses for the three months ended September 30, 2019 and 2018: 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, 2019 $ 3,100 $ 11,100 $ 2,927 $ 2,512 $ 1,063 $ 1,559 $ 22,261 Provision (credit) for loan losses 1 739 (366) 34 113 368 889 Charge-offs — — — (43) (216) — (259) Recoveries 74 1 — — 78 — 153 Balance at September 30, 2019 $ 3,175 $ 11,840 $ 2,561 $ 2,503 $ 1,038 $ 1,927 $ 23,044 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, 2018 $ 3,239 $ 10,059 $ 2,707 $ 2,286 $ 1,154 $ 1,210 $ 20,655 Provision (credit) for loan losses (226) 1,775 (146) 1,035 341 717 3,496 Charge-offs (136) — — (833) (660) — (1,629) Recoveries 298 6 — 15 203 — 522 Balance at September 30, 2019 $ 3,175 $ 11,840 $ 2,561 $ 2,503 $ 1,038 $ 1,927 $ 23,044 Allocation of the allowance to loan segments at September 30, 2019 and December 31, 2018 follows: Mortgage Loans Commercial Commercial Residential Real Estate Construction Commercial Consumer Unallocated Total (in thousands) September 30, 2019: Loans: Impaired loans $ 28,809 $ — $ 11,244 $ 5,231 $ — $ — $ 45,284 Non-impaired loans 1,084,895 1,088,036 149,305 293,421 445,531 — 3,061,188 Total loans $ 1,113,704 $ 1,088,036 $ 160,549 $ 298,652 $ 445,531 $ — $ 3,106,472 Allowance for loan losses: Impaired loans $ 1,051 $ — $ — $ 14 $ — $ — $ 1,065 Non-impaired loans 2,124 11,840 2,561 2,489 1,038 1,927 21,979 Total allowance for loan losses $ 3,175 $ 11,840 $ 2,561 $ 2,503 $ 1,038 $ 1,927 $ 23,044 December 31, 2018: Loans: Impaired loans $ 30,720 $ 2,502 $ - $ 3,826 $ — $ — $ 37,048 Non-impaired loans 1,084,736 931,918 161,660 273,445 491,445 — 2,943,204 Total loans $ 1,115,456 $ 934,420 $ 161,660 $ 277,271 $ 491,445 $ — $ 2,980,252 Allowance for loan losses: Impaired loans $ 1,205 $ — $ — $ 53 $ — $ — $ 1,258 Non-impaired loans 2,034 10,059 2,707 2,233 1,154 1,210 19,397 Total allowance for loan losses $ 3,239 $ 10,059 $ 2,707 $ 2,286 $ 1,154 $ 1,210 $ 20,655 The following is a summary of past due and non-accrual loans at September 30, 2019 and December 31, 2018: 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, 2019 Residential real estate: One- to four-family $ 250 $ 4,581 $ 4,706 $ 9,537 $ 10,604 Second mortgages and equity lines of credit 519 610 453 1,582 1,205 Commercial real estate 342 — 191 533 — Commercial construction — — — — 11,244 Commercial 601 302 3,014 3,917 3,967 Consumer: Auto 1,388 681 425 2,494 534 Personal 35 13 16 64 16 Total $ 3,135 $ 6,187 $ 8,805 $ 18,127 $ 27,570 December 31, 2018 Residential real estate: One- to four-family $ 1,283 $ 4,554 $ 6,516 $ 12,353 $ 12,120 Second mortgages and equity lines of credit 846 237 754 1,837 1,649 Commercial real estate — — 298 298 298 Commercial 34 550 2,575 3,159 3,087 Consumer: Auto 2,099 446 452 2,997 541 Personal 41 56 5 102 16 Total $ 4,303 $ 5,843 $ 10,600 $ 20,746 $ 17,711 At September 30, 2019 and December 31, 2018, there were no loans past due 90 days or more and still accruing. The following information pertains to impaired loans: September 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (in thousands) Impaired loans without a valuation allowance: Residential $ 11,515 $ 11,647 $ — $ 11,518 $ 12,054 $ — Commercial real estate — — — 2,502 2,596 — Commercial construction 11,244 11,244 — — — — Commercial 5,217 6,507 — 3,761 4,672 — Total 27,976 29,398 — 17,781 19,322 — Impaired loans with a valuation allowance: Residential 17,294 17,223 1,051 19,202 19,634 1,205 Commercial 14 14 14 65 65 53 Total 17,308 17,237 1,065 19,267 19,699 1,258 Total impaired loans $ 45,284 $ 46,635 $ 1,065 $ 37,048 $ 39,021 $ 1,258 Three Months Ended September 30, 2019 2018 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 $ 29,375 $ 451 $ 367 $ 31,712 $ 441 $ 340 Commercial real estate — — — 391 — — Commercial construction 5,622 — — — — — Commercial 5,467 21 21 1,933 — — Total $ 40,464 $ 472 $ 388 $ 34,036 $ 441 $ 340 Nine Months Ended September 30, 2019 2018 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 $ 30,316 $ 1,399 $ 1,125 $ 32,552 $ 1,427 $ 1,129 Commercial real estate 671 — — 351 — — Commercial construction 3,748 — — 33 — — Commercial 5,497 44 44 2,409 8 5 Total $ 40,232 $ 1,443 $ 1,169 $ 35,345 $ 1,435 $ 1,134 Interest income recognized and interest income recognized on a cash basis in the tables above represent interest income for the three and nine months ended September 30, 2019 and 2018, 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 months ended September 30, 2019 and 2018. The recorded investment in TDRs was $19.8 million and $22.2 million at September 30, 2019 and December 31, 2018, respectively. Of these loans, $3.2 million and $4.3 million were on non-accrual at September 30, 2019 and December 31, 2018, 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, 2019 and 2018, 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 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, 2019 and December 31, 2018: September 30, 2019 December 31, 2018 Commercial Commercial Commercial Commercial Real Estate Commercial Construction Real Estate Commercial Construction (in thousands) Loans rated 1 - 6 $ 1,082,002 $ 292,988 $ 134,643 $ 919,305 $ 268,280 $ 147,124 Loans rated 7 4,287 421 14,662 10,595 5,165 14,536 Loans rated 8 — 3,262 11,244 2,502 1,896 — Loans rated 9 — 1,981 — — 1,930 — Loans rated 10 — — — — — — Loans not rated 1,747 — — 2,018 — — $ 1,088,036 $ 298,652 $ 160,549 $ 934,420 $ 277,271 $ 161,660

MORTGAGE LOAN SERVICING

MORTGAGE LOAN SERVICING	9 Months Ended
	Sep. 30, 2019
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 $1.87 billion and $1.99 billion as of September 30, 2019 and December 31, 2018, 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, 2019 and December 31, 2018, the following weighted average assumptions were used in the calculation of fair value of MSRs: September 30, December 31, 2019 2018 Prepayment speed 14.41 % 9.45 % Discount rate 9.33 9.32 Default rate 2.56 2.06 The following summarizes changes to MSRs for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Balance, beginning of period $ 18,156 $ 22,832 $ 22,217 $ 21,092 Additions 385 1,294 716 2,318 Changes in fair value due to: Reductions from loans paid off during the period (585) (521) (1,363) (1,362) Changes in valuation inputs or assumptions (1,889) 143 (5,503) 1,700 Balance, end of period $ 16,067 $ 23,748 $ 16,067 $ 23,748 Contractually specified servicing fees included in other mortgage banking income amounted to $1.3 million and $4.1 million for the three and nine months ended September 30, 2019 and $1.3 million and $4.0 million for the three and nine months ended September 30, 2018, respectively.

GOODWILL

GOODWILL	9 Months Ended
	Sep. 30, 2019
GOODWILL
GOODWILL	6. Goodwill was $69.6 million and $70.1 million as of September 30, 2019 and December 31, 2018, respectively. The Company’s goodwill originated from the acquisition of Coastway in October 2018, Cumberland Mortgage in January 2018 and HarborOne Mortgage in 2015. The Company recorded fair value adjustments to reduce goodwill in the amount of $453,000 in the first quarter of 2019. There has been no impairment in goodwill recorded as of September 30, 2019. Future events that could cause a significant decline in our expected future cash flows or a significant adverse change in our business or the business climate may necessitate taking charges in future reporting periods related to the impairment of our goodwill and other intangible assets.

DEPOSITS

DEPOSITS	9 Months Ended
	Sep. 30, 2019
DEPOSITS
DEPOSITS	7. A summary of deposit balances, by type, is as follows: September 30, December 31, 2019 2018 (in thousands) NOW and demand deposit accounts $ 589,979 $ 556,517 Regular savings and club accounts 585,327 482,088 Money market deposit accounts 875,804 758,933 Total non-certificate accounts 2,051,110 1,797,538 Term certificate accounts greater than $250,000 166,404 180,305 Term certificate accounts less than or equal to $250,000 640,520 629,710 Brokered deposits 66,474 77,508 Total certificate accounts 873,398 887,523 Total deposits $ 2,924,508 $ 2,685,061 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, 2019 and December 31, 2018, total reciprocal deposits were $218.3 million and $110.4 million, respectively, consisting primarily of money market accounts. A summary of certificate accounts by maturity at September 30, 2019 is as follows: Weighted Average Amount Rate (dollars in thousands) Within 1 year $ 607,505 2.21 % Over 1 year to 2 years 213,143 2.27 Over 2 years to 3 years 41,171 1.91 Over 3 years to 4 years 12,084 2.10 Over 4 years to 5 years 1,100 1.65 Total certificate deposits 875,003 2.21 % Less unaccreted acquisition discount (1,605) Total certificate deposits, net $ 873,398

BORROWED FUNDS

BORROWED FUNDS	9 Months Ended
	Sep. 30, 2019
BORROWED FUNDS
FHLB BORROWINGS	8. Borrowed funds at September 30, 2019 and December 31, 2018 consist of Federal Home Loan Bank (“FHLB”) advances. Short-term advances were $60.0 million with a weighted average rate of 2.15% at September 30, 2019. Short-term advances were $290.0 million with a weighted average rate of 2.65% at December 31, 2018. Long-term advances are summarized by maturity date below. September 30, 2019 December 31, 2018 Amount by Weighted Amount by Weighted Scheduled Amount by Average Scheduled Amount by Average Maturity* Call Date (1) Rate (2) Maturity* Call Date (1) Rate (2) (dollars in thousands) Year ending December 31: 2019 $ 50,000 $ 80,000 2.40 % $ 90,000 120,000 2.06 % 2020 87,000 97,000 2.25 77,000 87,000 2021 41,750 21,750 2.47 41,750 21,750 2022 — — — — — — 2023 20,196 196 2.51 20,199 199 1.56 2024 10,000 10,000 1.68 — — — 2025 and thereafter 2,194 2,194 1.10 987 987 — $ 211,140 $ 211,140 2.32 % $ 229,936 $ 229,936 % * Includes an amortizing advance requiring monthly principal and interest payments. (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. (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 77% of the carrying value of first mortgage loans on residential property and 64% of certain other loans deemed acceptable to the FHLB of Boston. The Company also has an available line of credit with the Federal Reserve Bank of Boston secured by 82% of the carrying value of indirect auto loans with principal balances amounting to $54.9 million and $70.6 million, respectively, of which no amount was outstanding at September 30, 2019 and December 31, 2018, respectively.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2019
INCOME TAXES
INCOME TAXES	9. For the three and nine months ended September 30, 2019, the Company recorded an expense of $1.1 million and $2.2 million, respectively, representing an effective tax rate of 12.9% and 13.8%. For the three and nine months ended September 30, 2018, the Company recorded an income tax expense of $818,000 and $2.6 million, respectively, representing an effective tax rate of 12.1% and 18.6%. The effective tax rate for the quarter ended September 30, 2019 was impacted by the 2015 federal tax refund of $1.3 million and the 2015 Massachusetts state tax refund of $39,700 recognized in the quarter. Additionally, the effective tax rate for the nine months ended September 30, 2019 was impacted by the 2013 federal tax refund of $603,000 and the 2013 Massachusetts state tax refund of $211,000 recognized in the second quarter of 2019 and the 2014 Massachusetts state tax refund of $320,000 recognized in the first quarter of 2019. The refunds were a result of amended returns filed for those years.

OTHER COMMITMENTS AND CONTINGEN

OTHER COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2019
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, 2019 and December 31, 2018. The contract amounts represent credit risk. September 30, December 31, 2019 2018 (in thousands) Commitments to grant loans $ 171,167 $ 47,958 Unadvanced funds on home equity lines of credit 154,734 138,227 Unadvanced funds on revolving lines of credit 137,405 125,257 Unadvanced funds on construction loans 115,914 111,333 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, 2019
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, 2019 and December 31, 2018. 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. Mortgage-backed securities with a fair value of $23.7 million are pledged to secure the Company’s liability for the offsetting interest rate swaps (see Note 2). 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, 2019: Derivative loan commitments $ 220,102 Other assets $ 2,735 Other liabilities $ 150 Forward loan sale commitments 187,500 Other assets 227 Other liabilities 296 Interest rate swaps 618,928 Other assets 20,103 Other liabilities 20,103 Risk participation agreements 104,049 Other assets — Other liabilities — Total $ 23,065 $ 20,549 December 31, 2018: Derivative loan commitments $ 71,325 Other assets $ 1,261 Other liabilities $ 112 Forward loan sale commitments 54,500 Other assets — Other liabilities 518 Interest rate swaps 285,541 Other assets 3,193 Other liabilities 3,193 Risk participation agreements 80,418 Other assets — Other liabilities — Total $ 4,454 $ 3,823 The following table presents information pertaining to the Company’s derivative instruments in the Consolidated Statements of Income: Amount of Gain (Loss) Amount of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2019 2018 2019 2018 (in thousands) Derivative loan commitments Mortgage banking income $ 421 $ (358) $ 1,435 $ 247 Forward loan sale commitments Mortgage banking income 782 719 449 395 Total $ 1,203 $ 361 $ 1,884 $ 642

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2019
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	12. 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. Expense related to awards granted to employees is recognized as compensation expense and expense related to awards granted to directors is recognized as directors' fees within noninterest expense. Total expense for the Equity Plan was $1.3 million and $3.7 million for the three and nine months ended September 30, 2019. For the three and nine months ended September 30, 2018, total expense for the Equity Plan was $535,000 and $3.3 million. Share amounts related to periods prior to the date of the closing of the Offering on August 14, 2019 have been restated to give retroactive recognition to the 1.795431 exchange ratio applied in the Offering. 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. During the nine months ended September 30, 2019, the Company made the following awards of nonqualified options to purchase shares of common stock: Options granted 573,440 Vesting period (years) Term (years) Weighted average expected volatility % Expected life (years) Expected dividend yield — % Weighted average risk free interest rate % Weighted average fair value per option $ A summary of the status of the Company’s stock option grants for the nine months ended September 30, 2019, is presented in the table below: Outstanding Nonvested Weighted Average Weighted Weighted Remaining Aggregate Average Stock Option Average Contractual Intrinsic Stock Option Grant Date Awards Exercise Price Term (years) Value Awards Fair Value Balance at January 1, 2019 1,778,407 $ 10.17 1,249,793 $ 2.82 Granted 573,440 9.07 573,440 2.49 Vested — — (466,810) 2.83 Forfeited (41,894) 10.23 (41,894) 2.82 Expired (69,646) 10.23 — — Balance at September 30, 2019 2,240,307 $ 9.88 8.50 $ 647,000 1,314,529 $ 2.68 Exercisable at September 30, 2019 925,778 $ 10.23 7.90 $ — Unrecognized cost inclusive of directors' awards $ 2,886,000 Weighted average remaining recognition period (years) 1.77 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, 2019: Restricted Weighted Average Stock Awards Grant Price Non-vested stock awards at January 1, 2019 617,293 $ 10.24 Vested (298,484) 10.23 Granted 43,876 9.90 Forfeited (17,356) 10.23 Non-vested stock awards at September 30, 2019 345,329 $ 10.19 Unrecognized cost inclusive of directors' awards $ 3,093,000 Weighted average remaining recognition period (years) 1.12

MINIMUM REGULATORY CAPITAL REQU

MINIMUM REGULATORY CAPITAL REQUIREMENTS	9 Months Ended
	Sep. 30, 2019
MINIMUM REGULATORY CAPITAL REQUIREMENTS
MINIMUM REGULATORY CAPITAL REQUIREMENTS	13. MINIMUM REGULATORY CAPITAL REQUIREMENTS 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, the capital rules require a bank holding company to maintain 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, 2019, 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, 2019 also exceeded the minimum capital requirements, including the currently applicable capital conservation buffer of 2.5%. The Company’s and the Bank’s actual regulatory capital ratios as of September 30, 2019 and December 31, 2018 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, 2019 Common equity Tier 1 capital to risk-weighted assets $ 583,319 19.1 % $ 137,098 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 583,319 19.1 182,798 6.0 N/A N/A Total capital to risk-weighted assets 641,363 21.1 243,730 8.0 N/A N/A Tier 1 capital to average assets 583,319 16.2 144,313 4.0 N/A N/A December 31, 2018 Common equity Tier 1 capital to risk-weighted assets $ 283,738 9.9 % $ 129,246 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 283,738 9.9 172,328 6.0 N/A N/A Total capital to risk-weighted assets 339,393 11.8 229,771 8.0 N/A N/A Tier 1 capital to average assets 283,738 8.2 137,919 4.0 N/A N/A HarborOne Bank September 30, 2019 Common equity Tier 1 capital to risk-weighted assets $ 446,714 14.7 % $ 137,063 4.5 % $ 197,980 6.5 % Tier 1 capital to risk-weighted assets 446,714 14.7 182,751 6.0 243,668 8.0 Total capital to risk-weighted assets 469,758 15.4 243,668 8.0 304,585 10.0 Tier 1 capital to average assets 446,714 12.5 143,335 4.0 179,169 5.0 December 31, 2018 Common equity Tier 1 capital to risk-weighted assets $ 296,738 10.3 % $ 129,250 4.5 % $ 186,694 6.5 % Tier 1 capital to risk-weighted assets 296,738 10.3 172,333 6.0 229,778 8.0 Total capital to risk-weighted assets 317,393 11.1 229,778 8.0 287,222 10.0 Tier 1 capital to average assets 296,738 8.6 137,784 4.0 172,230 5.0

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)	9 Months Ended
	Sep. 30, 2019
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS)	14. 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 income (loss), included in stockholders’ equity, are as follows: September 30, December 31, 2019 2018 (in thousands) Securities available for sale: Net unrealized gain (loss) $ 2,413 $ (3,023) Related tax effect (532) 665 Total accumulated other comprehensive income (loss) $ 1,881 $ (2,358) The following tables present changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 2018 Available Available for Sale for Sale Securities Securities (in thousands) Balance at beginning of period $ 1,466 $ (3,733) Other comprehensive income (loss) before reclassifications 609 (1,501) Amounts reclassified from accumulated other comprehensive income (77) — Net current period other comprehensive income (loss) 532 (1,501) Related tax effect (117) 330 Balance at end of period $ 1,881 $ (4,904) Nine Months Ended September 30, 2019 2018 Available Available for Sale for Sale Securities Securities (in thousands) Balance at beginning of period $ (2,358) $ (528) Other comprehensive income (loss) before reclassifications 6,780 (5,476) Amounts reclassified from accumulated other comprehensive income (1,344) — Reclassification of stranded effect of tax rate change — (104) Net current period other comprehensive income (loss) 5,436 (5,580) Related tax effect (1,197) 1,204 Balance at end of period $ 1,881 $ (4,904)

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	9 Months Ended
	Sep. 30, 2019
FAIR VALUE OF ASSETS AND LIABILITIES
FAIR VALUE OF ASSETS AND LIABILITIES	15. 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. 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. The weighted average pull-through rate for derivative loan commitments was approximately 85% at September 30, 2019 and December 31, 2018. 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, 2019 Assets Securities available for sale $ — $ 204,133 $ — $ 204,133 Loans held for sale — 102,121 — 102,121 Mortgage servicing rights — 16,067 — 16,067 Derivative loan commitments — — 2,735 2,735 Forward loan sale commitments — — 227 227 Interest rate swaps — 20,103 — 20,103 $ — $ 342,424 $ 2,962 $ 345,386 Liabilities Derivative loan commitments $ — $ — $ 150 $ 150 Forward loan sale commitments — — 296 296 Interest rate swaps — 20,103 — 20,103 $ — $ 20,103 $ 446 $ 20,549 December 31, 2018 Assets Securities available for sale $ — $ 209,293 $ — $ 209,293 Loans held for sale — 42,107 — 42,107 Mortgage servicing rights — 22,217 — 22,217 Derivative loan commitments — — 1,261 1,261 Interest rate swaps — 3,193 — 3,193 $ — $ 276,810 $ 1,261 $ 278,071 Liabilities Derivative loan commitments $ — $ — $ 112 $ 112 Forward loan sale commitments — — 518 518 Interest rate swaps — 3,193 — 3,193 $ — $ 3,193 $ 630 $ 3,823 The table below presents, for the three months ended September 30, 2019 and 2018, 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, 2019 2018 2019 2018 (in thousands) Assets: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ 2,494 $ 1,755 $ 1,261 $ 1,093 Total gains included in net income (1) 468 (107) 1,701 555 Balance at end of period $ 2,962 $ 1,648 $ 2,962 $ 1,648 Changes in unrealized gains relating to instruments at period end $ 2,962 $ 1,648 $ 2,962 $ 1,648 Liabilities: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ (1,182) $ (500) $ (630) $ (119) Total gains (losses) included in net income (1) 736 468 184 87 Balance at end of period $ (446) $ (32) $ (446) $ (32) Changes in unrealized losses relating to instruments at period end $ (446) $ (32) $ (446) $ (32) (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, 2019 and December 31, 2018. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets. September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Impaired loans $ — $ — $ 1,981 $ — $ — $ 2,086 Other real estate owned and repossessed assets — — 377 — — 749 $ — $ — $ 2,358 $ — $ — $ 2,835 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, 2019 and December 31, 2018, respectively. Losses on fully charged off loans are not included in the table. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Impaired loans $ 207 $ — $ 251 $ 34 Other real estate owned and repossessed assets 21 — 88 5 $ 228 $ — $ 339 $ 39 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, 2019 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 238,631 $ 238,631 $ — $ — $ 238,631 Securities available for sale 204,133 — 204,133 — 204,133 Securities held to maturity 27,099 — 27,099 — 27,099 Federal Home Loan Bank stock 13,466 — — 13,466 13,466 Loans held for sale 102,121 — 102,121 — 102,121 Loans, net 3,089,220 — — 3,138,453 3,138,453 Retirement plan annuities 13,231 — — 13,231 13,231 Mortgage servicing rights 16,067 — 16,067 — 16,067 Accrued interest receivable 9,835 — 9,835 — 9,835 Financial liabilities: Deposits 2,924,508 — — 2,925,230 2,925,230 Borrowed funds 271,140 — 271,937 — 271,937 Subordinated debt 33,875 — — 35,383 35,383 Mortgagors' escrow accounts 6,251 — — 6,251 6,251 Accrued interest payable 806 — 806 — 806 Derivative loan commitments: Assets 2,735 — — 2,735 2,735 Liabilities 150 — — 150 150 Interest rate swap agreements: Assets 20,103 — 20,103 — 20,103 Liabilities 20,103 — 20,103 — 20,103 Forward loan sale commitments: Assets 227 — — 227 227 Liabilities 296 — — 296 296 December 31, 2018 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 105,521 $ 105,521 $ — $ — $ 105,521 Securities available for sale 209,293 — 209,293 — 209,293 Securities held to maturity 44,688 — 44,706 — 44,706 Federal Home Loan Bank stock 24,969 — — 24,969 24,969 Loans held for sale 42,107 — 42,107 — 42,107 Loans, net 2,964,852 — — 2,959,333 2,959,333 Retirement plan annuities 12,931 — — 12,931 12,931 Mortgage servicing rights 22,217 — 22,217 — 22,217 Accrued interest receivable 9,996 — 9,996 — 9,996 Financial liabilities: Deposits 2,685,061 — — 2,678,989 2,678,989 Borrowed funds 519,936 — 518,224 — 518,224 Subordinated debt 33,799 — — 34,338 34,338 Mortgagors' escrow accounts 4,551 — — 4,551 4,551 Accrued interest payable 1,611 — 1,611 — 1,611 Derivative loan commitments: Assets 1,261 — — 1,261 1,261 Liabilities 112 — — 112 112 Interest rate swap agreements: Assets 3,193 — 3,193 — 3,193 Liabilities 3,193 — 3,193 — 3,193 Forward loan sale commitments: Assets — — — — — Liabilities 518 — — 518 518

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2019
EARNINGS PER SHARE (“EPS”)
EARNINGS PER SHARE (“EPS”)	16. 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, 2019 2018 Net income applicable to common stock (in thousands) $ 7,113 $ 5,928 Average number of common shares outstanding 58,453,259 58,538,529 Less: Average unallocated ESOP shares (2,814,525) (1,847,404) Average number of common shares outstanding used to calculate basic earnings per common share 55,638,734 56,691,125 Common stock equivalents — 1,079 Average number of common shares outstanding used to calculate diluted earnings per common share 55,638,734 56,692,204 Earnings per common share: Basic $ 0.13 $ 0.10 Diluted $ 0.13 $ 0.10 Nine Months Ended September 30, 2019 2018 Net income applicable to common stock (in thousands) $ 13,961 $ 11,283 Average number of common shares outstanding 58,461,953 58,565,130 Less: Average unallocated ESOP shares (1,606,023) (1,874,956) Average number of common shares outstanding used to calculate basic earnings per common share 56,855,930 56,690,174 Common stock equivalents — 359 Average number of common shares outstanding used to calculate diluted earnings per common share 56,855,930 56,690,533 Earnings per common share: Basic $ 0.25 $ 0.20 Diluted $ 0.25 $ 0.20 Share amounts related to periods prior to the August 14, 2019 closing of the conversion offering have been restated to give retroactive recognition to the 1.795431 exchange ratio applied in the conversion offering. Stock options for 2,240,307 and 1,420,647 shares of common stock for the three and nine months ended September 30, 2019 and 2018, respectively, were not considered in computing diluted earnings per share because they were antidilutive.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2019
SEGMENT REPORTING
SEGMENT REPORTING	17. 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. 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, 2019 and 2018 and for the three and nine months then ended is presented in the tables below. Three Months Ended September 30, 2019 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income (expense) $ 27,855 $ 285 $ (155) $ — $ 27,985 Provision for loan losses 889 — — — 889 Net interest and dividend income (loss), after provision for loan losses 26,966 285 (155) — 27,096 Mortgage banking income: Changes in mortgage servicing rights fair value (591) (1,883) — — (2,474) Other (24) 14,003 — — 13,979 Total mortgage banking income (loss) (615) 12,120 — — 11,505 Other noninterest income (loss) 5,772 (4) — — 5,768 Total noninterest income 5,157 12,116 — — 17,273 Noninterest expense 24,405 11,227 571 — 36,203 Income (loss) before income taxes 7,718 1,174 (726) — 8,166 Provision (benefit) for income taxes 1,019 171 (137) — 1,053 Net income (loss) $ 6,699 $ 1,003 $ (589) $ — $ 7,113 Nine Months Ended September 30, 2019 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income (expense) $ 81,296 $ 604 $ (1,172) $ — $ 80,728 Provision for loan losses 3,496 — — — 3,496 Net interest and dividend income (loss), after provision for loan losses 77,800 604 (1,172) — 77,232 Mortgage banking income: Changes in mortgage servicing rights fair value (1,599) (5,267) — — (6,866) Other 262 31,266 — — 31,528 Total mortgage banking income (loss) (1,337) 25,999 — — 24,662 Other noninterest income (loss) 18,191 (20) — — 18,171 Total noninterest income 16,854 25,979 — — 42,833 Noninterest expense 74,527 27,496 1,853 — 103,876 Income (loss) before income taxes 20,127 (913) (3,025) — 16,189 Provision (benefit) for income taxes 3,267 (256) (783) — 2,228 Net income (loss) $ 16,860 $ (657) $ (2,242) $ — $ 13,961 Total assets at period end $ 3,821,671 $ 152,800 $ 693,851 $ (719,302) $ 3,949,020 Goodwill at period end $ 58,875 $ 10,760 $ — $ — $ 69,635 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 and dividend 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 and dividend income, after provision for loan losses 59,103 739 (28) — 59,814 Mortgage banking income: Changes in mortgage servicing rights fair value — — 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

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2019
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, 2018 and 2017 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, a passive investment corporation 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. The passive investment corporation maintains and manages certain assets of the Bank. All significant intercompany balances and transactions have been eliminated in consolidation
Conversion and Reorganization	Conversion and Reorganization On August 14, 2019 the Company completed a second step conversion offering (the “Offering”). Prior to the completion of the Offering approximately 53% of the shares of common stock of the Company were owned by HarborOne Mutual Bancshares, a mutual holding company (the ”MHC”). The Company raised gross proceeds of $310.4 million and incurred expenses of $6.3 million resulting in net cash proceeds of $304.1 million by selling 31,036,812 shares of common stock at $10.00 per share in the Offering. In addition, each share of the Company common stock owned by shareholders, other than the MHC, prior to the Offering was exchanged for 1.795431 shares of Company common stock, a total of 12,162,763 shares of Company common stock were issued in the exchange. The Company utilized $24.8 million to fund an additional ESOP loan, invested $151.3 million into the Bank’s operations, and retained the remaining amount for general corporate purposes. As a result of the Offering, all shares and per share information has been revised to reflect the 1.795431 exchange ratio. Such revised financial information presented in this Form 10-Q is derived from the consolidated financial statements of the Company.
Business Combination	Business Combination Effective October 5, 2018, the Company completed the acquisition of Coastway Bancorp, Inc. (“Coastway”) the holding company of Coastway Community Bank in an all cash transaction valued at approximately $125.6 million, with $835.1 million in total assets, $736.2 million in gross loans and $478.3 million in deposits.
Nature of Operations	Nature of Operations The Company provides a variety of financial services to individuals and businesses through its 24 full-service branches in Massachusetts and Rhode Island, one limited-service bank branch, and a commercial lending office in each of Boston, Massachusetts and Providence, Rhode Island. HarborOne Mortgage maintains more than 30 offices in Massachusetts, Rhode Island, New Hampshire, Maine, and New Jersey and is also licensed to lend in four 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, commercial construction 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 2018 or the nine months ended September 30, 2019. 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. Residential construction –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 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. Commercial construction –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.
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, 2019, there is no significant difference in the comparability of the financial statements as a result of this extended transition period. The Company’s emerging growth company status is scheduled to end December 31, 2021 unless a triggering event occurs sooner. 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. For non-public entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. 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. For non-public entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this standard is not expected to have a material effect on the Company’s Consolidated Financial Statements. 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. For non-public entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. 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, 2021, including interim periods within those fiscal years. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company continues to evaluate the impact of this ASU on the consolidated financial statements and disclosures. The Company has formed a cross functional working group and is currently working through its implementation plan which includes assessment and documentation of processes, internal controls, and data sources; model development and documentation; and implementation of a third-party vendor solution to assist in the application of this ASU. 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 Income, 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 were 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 adoption of this ASU 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 was 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 15, 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. The Company adopted the updated guidance using the modified retrospective approach effective January 1, 2019, with no material impact on its Consolidated Financial Statements.

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2019
SECURITIES
Schedule of securities with gross unrealized gains and losses	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (in thousands) September 30, 2019: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 22,995 $ 237 $ — $ 23,232 U.S. government agency and government-sponsored residential mortgage-backed securities 118,206 1,443 207 119,442 U.S. government-sponsored collateralized mortgage obligations 27,528 316 13 27,831 SBA asset-backed securities 32,991 637 — 33,628 Total securities available for sale $ 201,720 $ 2,633 $ 220 $ 204,133 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ 13,323 $ 94 $ 6 $ 13,411 U.S. government-sponsored collateralized mortgage obligations 1,516 77 — 1,593 SBA asset-backed securities 5,309 173 — 5,482 Municipal bonds 6,951 299 — 7,250 Total securities held to maturity $ 27,099 $ 643 $ 6 $ 27,736 December 31, 2018: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 27,997 $ 71 $ 527 $ 27,541 U.S. government agency and government-sponsored residential mortgage-backed securities 105,340 335 1,658 104,017 U.S. government-sponsored collateralized mortgage obligations 31,293 — 365 30,928 SBA asset-backed securities 47,686 106 985 46,807 Total securities available for sale $ 212,316 $ 512 $ 3,535 $ 209,293 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ 15,025 $ 63 $ 481 $ 14,607 U.S. government-sponsored collateralized mortgage obligations 1,724 29 — 1,753 SBA asset-backed securities 5,818 42 41 5,819 Municipal bonds 22,121 406 — 22,527 Total securities held to maturity $ 44,688 $ 540 $ 522 $ 44,706
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 $ 22,995 $ 23,232 $ 1,152 $ 1,252 Over 10 years — — 5,799 5,998 22,995 23,232 6,951 7,250 U.S. government agency and government-sponsored residential mortgage-backed securities 118,206 119,442 13,323 13,411 U.S. government-sponsored collateralized mortgage obligations 27,528 27,831 1,516 1,593 SBA asset-backed securities 32,991 33,628 5,309 5,482 Total $ 201,720 $ 204,133 $ 27,099 $ 27,736
Schedule of proceeds and gross realized gains and losses related to sales and calls of securities	Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Sales Proceeds (1) $ — $ — $ 28,391 $ — Gross gains — — 1,267 — Gross losses — — — — Calls Proceeds (1) $ 11,775 $ — $ 20,145 $ — Gross gains 77 — 77 — Gross losses — — — — (1) For the nine months ended September 30, 2019, proceeds from sales consisted of six available for sale securities. Proceeds from calls consisted of seven and fifteen held to maturity securities for the three and nine months ended September 30, 2019, respectively, and one available for sale security for the three and nine months ended September 30, 2019.
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, 2019: Securities available for sale U.S. government agency and government-sponsored residential mortgage-backed securities $ 83 $ 19,232 $ 124 $ 11,244 U.S. government-sponsored collateralized mortgage obligations — — 13 3,898 SBA asset-backed securities — 1,202 — — $ 83 $ 20,434 $ 137 $ 15,142 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ — $ — $ 6 $ 2,703 December 31, 2018: Securities available for sale U.S. government and government-sponsored enterprise obligations $ — $ — $ 527 $ 17,460 U.S. government agency and government-sponsored residential mortgage-backed securities 55 12,714 1,603 67,060 U.S. government-sponsored collateralized mortgage obligations — — 365 30,928 SBA asset-backed securities — — 985 36,860 $ 55 $ 12,714 $ 3,480 $ 152,308 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ — $ — $ 481 $ 12,938 SBA asset-backed securities — — 41 2,834 $ — $ — $ 522 $ 15,772

LOANS HELD FOR SALE (Tables)

LOANS HELD FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2019
LOANS HELD FOR SALE
Schedule of fair value and contractual principal balance outstanding of loans held for sale	September 30, December 31, 2019 2018 (in thousands) Loans held for sale, fair value $ 102,121 $ 42,107 Loans held for sale, contractual principal outstanding 99,422 40,692 Fair value less unpaid principal balance $ 2,699 $ 1,415

LOANS - (Tables)

LOANS - (Tables)	9 Months Ended
	Sep. 30, 2019
LOANS
Summary of balances of loans	September 30, December 31, 2019 2018 (in thousands) Residential real estate: One- to four-family $ 946,792 $ 942,659 Second mortgages and equity lines of credit 152,494 158,138 Residential real estate construction 14,418 14,659 Commercial real estate 1,088,036 934,420 Commercial construction 160,549 161,660 Total mortgage loans on real estate 2,362,289 2,211,536 Commercial 298,652 277,271 Consumer loans: Auto 434,047 478,863 Personal 11,484 12,582 Total consumer loans 445,531 491,445 Total loans 3,106,472 2,980,252 Net deferred loan costs 5,792 5,255 Allowance for loan losses (23,044) (20,655) Loans, net $ 3,089,220 $ 2,964,852
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 months ended September 30, 2019 and 2018: 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, 2019 $ 3,100 $ 11,100 $ 2,927 $ 2,512 $ 1,063 $ 1,559 $ 22,261 Provision (credit) for loan losses 1 739 (366) 34 113 368 889 Charge-offs — — — (43) (216) — (259) Recoveries 74 1 — — 78 — 153 Balance at September 30, 2019 $ 3,175 $ 11,840 $ 2,561 $ 2,503 $ 1,038 $ 1,927 $ 23,044 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, 2018 $ 3,239 $ 10,059 $ 2,707 $ 2,286 $ 1,154 $ 1,210 $ 20,655 Provision (credit) for loan losses (226) 1,775 (146) 1,035 341 717 3,496 Charge-offs (136) — — (833) (660) — (1,629) Recoveries 298 6 — 15 203 — 522 Balance at September 30, 2019 $ 3,175 $ 11,840 $ 2,561 $ 2,503 $ 1,038 $ 1,927 $ 23,044 Allocation of the allowance to loan segments at September 30, 2019 and December 31, 2018 follows: Mortgage Loans Commercial Commercial Residential Real Estate Construction Commercial Consumer Unallocated Total (in thousands) September 30, 2019: Loans: Impaired loans $ 28,809 $ — $ 11,244 $ 5,231 $ — $ — $ 45,284 Non-impaired loans 1,084,895 1,088,036 149,305 293,421 445,531 — 3,061,188 Total loans $ 1,113,704 $ 1,088,036 $ 160,549 $ 298,652 $ 445,531 $ — $ 3,106,472 Allowance for loan losses: Impaired loans $ 1,051 $ — $ — $ 14 $ — $ — $ 1,065 Non-impaired loans 2,124 11,840 2,561 2,489 1,038 1,927 21,979 Total allowance for loan losses $ 3,175 $ 11,840 $ 2,561 $ 2,503 $ 1,038 $ 1,927 $ 23,044 December 31, 2018: Loans: Impaired loans $ 30,720 $ 2,502 $ - $ 3,826 $ — $ — $ 37,048 Non-impaired loans 1,084,736 931,918 161,660 273,445 491,445 — 2,943,204 Total loans $ 1,115,456 $ 934,420 $ 161,660 $ 277,271 $ 491,445 $ — $ 2,980,252 Allowance for loan losses: Impaired loans $ 1,205 $ — $ — $ 53 $ — $ — $ 1,258 Non-impaired loans 2,034 10,059 2,707 2,233 1,154 1,210 19,397 Total allowance for loan losses $ 3,239 $ 10,059 $ 2,707 $ 2,286 $ 1,154 $ 1,210 $ 20,655
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, 2019 Residential real estate: One- to four-family $ 250 $ 4,581 $ 4,706 $ 9,537 $ 10,604 Second mortgages and equity lines of credit 519 610 453 1,582 1,205 Commercial real estate 342 — 191 533 — Commercial construction — — — — 11,244 Commercial 601 302 3,014 3,917 3,967 Consumer: Auto 1,388 681 425 2,494 534 Personal 35 13 16 64 16 Total $ 3,135 $ 6,187 $ 8,805 $ 18,127 $ 27,570 December 31, 2018 Residential real estate: One- to four-family $ 1,283 $ 4,554 $ 6,516 $ 12,353 $ 12,120 Second mortgages and equity lines of credit 846 237 754 1,837 1,649 Commercial real estate — — 298 298 298 Commercial 34 550 2,575 3,159 3,087 Consumer: Auto 2,099 446 452 2,997 541 Personal 41 56 5 102 16 Total $ 4,303 $ 5,843 $ 10,600 $ 20,746 $ 17,711
Schedule of information pertaining to impaired loans	The following information pertains to impaired loans: September 30, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (in thousands) Impaired loans without a valuation allowance: Residential $ 11,515 $ 11,647 $ — $ 11,518 $ 12,054 $ — Commercial real estate — — — 2,502 2,596 — Commercial construction 11,244 11,244 — — — — Commercial 5,217 6,507 — 3,761 4,672 — Total 27,976 29,398 — 17,781 19,322 — Impaired loans with a valuation allowance: Residential 17,294 17,223 1,051 19,202 19,634 1,205 Commercial 14 14 14 65 65 53 Total 17,308 17,237 1,065 19,267 19,699 1,258 Total impaired loans $ 45,284 $ 46,635 $ 1,065 $ 37,048 $ 39,021 $ 1,258 Three Months Ended September 30, 2019 2018 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 $ 29,375 $ 451 $ 367 $ 31,712 $ 441 $ 340 Commercial real estate — — — 391 — — Commercial construction 5,622 — — — — — Commercial 5,467 21 21 1,933 — — Total $ 40,464 $ 472 $ 388 $ 34,036 $ 441 $ 340 Nine Months Ended September 30, 2019 2018 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 $ 30,316 $ 1,399 $ 1,125 $ 32,552 $ 1,427 $ 1,129 Commercial real estate 671 — — 351 — — Commercial construction 3,748 — — 33 — — Commercial 5,497 44 44 2,409 8 5 Total $ 40,232 $ 1,443 $ 1,169 $ 35,345 $ 1,435 $ 1,134
Schedule of loans by risk rating	September 30, 2019 December 31, 2018 Commercial Commercial Commercial Commercial Real Estate Commercial Construction Real Estate Commercial Construction (in thousands) Loans rated 1 - 6 $ 1,082,002 $ 292,988 $ 134,643 $ 919,305 $ 268,280 $ 147,124 Loans rated 7 4,287 421 14,662 10,595 5,165 14,536 Loans rated 8 — 3,262 11,244 2,502 1,896 — Loans rated 9 — 1,981 — — 1,930 — Loans rated 10 — — — — — — Loans not rated 1,747 — — 2,018 — — $ 1,088,036 $ 298,652 $ 160,549 $ 934,420 $ 277,271 $ 161,660

MORTGAGE LOAN SERVICING (Tables

MORTGAGE LOAN SERVICING (Tables)	9 Months Ended
	Sep. 30, 2019
MORTGAGE LOAN SERVICING
Tabular disclosure of assumptions used in the calculation of fair value of MSR	September 30, December 31, 2019 2018 Prepayment speed 14.41 % 9.45 % Discount rate 9.33 9.32 Default rate 2.56 2.06
Schedule of summarized changes to mortgage servicing rights	Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Balance, beginning of period $ 18,156 $ 22,832 $ 22,217 $ 21,092 Additions 385 1,294 716 2,318 Changes in fair value due to: Reductions from loans paid off during the period (585) (521) (1,363) (1,362) Changes in valuation inputs or assumptions (1,889) 143 (5,503) 1,700 Balance, end of period $ 16,067 $ 23,748 $ 16,067 $ 23,748

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2019
DEPOSITS
Summary of deposit balances, by type	September 30, December 31, 2019 2018 (in thousands) NOW and demand deposit accounts $ 589,979 $ 556,517 Regular savings and club accounts 585,327 482,088 Money market deposit accounts 875,804 758,933 Total non-certificate accounts 2,051,110 1,797,538 Term certificate accounts greater than $250,000 166,404 180,305 Term certificate accounts less than or equal to $250,000 640,520 629,710 Brokered deposits 66,474 77,508 Total certificate accounts 873,398 887,523 Total deposits $ 2,924,508 $ 2,685,061
Summary of certificate accounts by maturity	Weighted Average Amount Rate (dollars in thousands) Within 1 year $ 607,505 2.21 % Over 1 year to 2 years 213,143 2.27 Over 2 years to 3 years 41,171 1.91 Over 3 years to 4 years 12,084 2.10 Over 4 years to 5 years 1,100 1.65 Total certificate deposits 875,003 2.21 % Less unaccreted acquisition discount (1,605) Total certificate deposits, net $ 873,398

BORROWED FUNDS (Tables)

BORROWED FUNDS (Tables)	9 Months Ended
	Sep. 30, 2019
BORROWED FUNDS
Schedule of borrowed funds by maturity and call date	September 30, 2019 December 31, 2018 Amount by Weighted Amount by Weighted Scheduled Amount by Average Scheduled Amount by Average Maturity* Call Date (1) Rate (2) Maturity* Call Date (1) Rate (2) (dollars in thousands) Year ending December 31: 2019 $ 50,000 $ 80,000 2.40 % $ 90,000 120,000 2.06 % 2020 87,000 97,000 2.25 77,000 87,000 2021 41,750 21,750 2.47 41,750 21,750 2022 — — — — — — 2023 20,196 196 2.51 20,199 199 1.56 2024 10,000 10,000 1.68 — — — 2025 and thereafter 2,194 2,194 1.10 987 987 — $ 211,140 $ 211,140 2.32 % $ 229,936 $ 229,936 % * Includes an amortizing advance requiring monthly principal and interest payments. (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. (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, 2019
OTHER COMMITMENTS AND CONTINGENCIES
Schedule of financial instruments with off-balance sheet credit risk	September 30, December 31, 2019 2018 (in thousands) Commitments to grant loans $ 171,167 $ 47,958 Unadvanced funds on home equity lines of credit 154,734 138,227 Unadvanced funds on revolving lines of credit 137,405 125,257 Unadvanced funds on construction loans 115,914 111,333

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
	Sep. 30, 2019
DERIVATIVES
Schedule of 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, 2019: Derivative loan commitments $ 220,102 Other assets $ 2,735 Other liabilities $ 150 Forward loan sale commitments 187,500 Other assets 227 Other liabilities 296 Interest rate swaps 618,928 Other assets 20,103 Other liabilities 20,103 Risk participation agreements 104,049 Other assets — Other liabilities — Total $ 23,065 $ 20,549 December 31, 2018: Derivative loan commitments $ 71,325 Other assets $ 1,261 Other liabilities $ 112 Forward loan sale commitments 54,500 Other assets — Other liabilities 518 Interest rate swaps 285,541 Other assets 3,193 Other liabilities 3,193 Risk participation agreements 80,418 Other assets — Other liabilities — Total $ 4,454 $ 3,823
Schedule of information pertaining to the Company's derivative instruments on the Consolidated Statements of Income	Amount of Gain (Loss) Amount of Gain (Loss) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2019 2018 2019 2018 (in thousands) Derivative loan commitments Mortgage banking income $ 421 $ (358) $ 1,435 $ 247 Forward loan sale commitments Mortgage banking income 782 719 449 395 Total $ 1,203 $ 361 $ 1,884 $ 642

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2019
STOCK-BASED COMPENSATION
Schedule of stock options, valuation assumptions	Options granted 573,440 Vesting period (years) Term (years) Weighted average expected volatility % Expected life (years) Expected dividend yield — % Weighted average risk free interest rate % Weighted average fair value per option $
Schedule of stock option activity	Outstanding Nonvested Weighted Average Weighted Weighted Remaining Aggregate Average Stock Option Average Contractual Intrinsic Stock Option Grant Date Awards Exercise Price Term (years) Value Awards Fair Value Balance at January 1, 2019 1,778,407 $ 10.17 1,249,793 $ 2.82 Granted 573,440 9.07 573,440 2.49 Vested — — (466,810) 2.83 Forfeited (41,894) 10.23 (41,894) 2.82 Expired (69,646) 10.23 — — Balance at September 30, 2019 2,240,307 $ 9.88 8.50 $ 647,000 1,314,529 $ 2.68 Exercisable at September 30, 2019 925,778 $ 10.23 7.90 $ — Unrecognized cost inclusive of directors' awards $ 2,886,000 Weighted average remaining recognition period (years) 1.77
Schedule of non-vested stock award activity	Restricted Weighted Average Stock Awards Grant Price Non-vested stock awards at January 1, 2019 617,293 $ 10.24 Vested (298,484) 10.23 Granted 43,876 9.90 Forfeited (17,356) 10.23 Non-vested stock awards at September 30, 2019 345,329 $ 10.19 Unrecognized cost inclusive of directors' awards $ 3,093,000 Weighted average remaining recognition period (years) 1.12

MINIMUM REGULATORY CAPITAL RE_2

MINIMUM REGULATORY CAPITAL REQUIREMENTS (Tables)	9 Months Ended
	Sep. 30, 2019
MINIMUM REGULATORY CAPITAL REQUIREMENTS
Summary of the company's and the bank's actual regulatory capital ratios	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, 2019 Common equity Tier 1 capital to risk-weighted assets $ 583,319 19.1 % $ 137,098 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 583,319 19.1 182,798 6.0 N/A N/A Total capital to risk-weighted assets 641,363 21.1 243,730 8.0 N/A N/A Tier 1 capital to average assets 583,319 16.2 144,313 4.0 N/A N/A December 31, 2018 Common equity Tier 1 capital to risk-weighted assets $ 283,738 9.9 % $ 129,246 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 283,738 9.9 172,328 6.0 N/A N/A Total capital to risk-weighted assets 339,393 11.8 229,771 8.0 N/A N/A Tier 1 capital to average assets 283,738 8.2 137,919 4.0 N/A N/A HarborOne Bank September 30, 2019 Common equity Tier 1 capital to risk-weighted assets $ 446,714 14.7 % $ 137,063 4.5 % $ 197,980 6.5 % Tier 1 capital to risk-weighted assets 446,714 14.7 182,751 6.0 243,668 8.0 Total capital to risk-weighted assets 469,758 15.4 243,668 8.0 304,585 10.0 Tier 1 capital to average assets 446,714 12.5 143,335 4.0 179,169 5.0 December 31, 2018 Common equity Tier 1 capital to risk-weighted assets $ 296,738 10.3 % $ 129,250 4.5 % $ 186,694 6.5 % Tier 1 capital to risk-weighted assets 296,738 10.3 172,333 6.0 229,778 8.0 Total capital to risk-weighted assets 317,393 11.1 229,778 8.0 287,222 10.0 Tier 1 capital to average assets 296,738 8.6 137,784 4.0 172,230 5.0

COMPREHENSIVE INCOME (LOSS) (Ta

COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
	Sep. 30, 2019
COMPREHENSIVE INCOME (LOSS)
Schedule of components of accumulated other comprehensive loss	September 30, December 31, 2019 2018 (in thousands) Securities available for sale: Net unrealized gain (loss) $ 2,413 $ (3,023) Related tax effect (532) 665 Total accumulated other comprehensive income (loss) $ 1,881 $ (2,358)
Summary of components of OCI	The following tables present changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 2018 Available Available for Sale for Sale Securities Securities (in thousands) Balance at beginning of period $ 1,466 $ (3,733) Other comprehensive income (loss) before reclassifications 609 (1,501) Amounts reclassified from accumulated other comprehensive income (77) — Net current period other comprehensive income (loss) 532 (1,501) Related tax effect (117) 330 Balance at end of period $ 1,881 $ (4,904) Nine Months Ended September 30, 2019 2018 Available Available for Sale for Sale Securities Securities (in thousands) Balance at beginning of period $ (2,358) $ (528) Other comprehensive income (loss) before reclassifications 6,780 (5,476) Amounts reclassified from accumulated other comprehensive income (1,344) — Reclassification of stranded effect of tax rate change — (104) Net current period other comprehensive income (loss) 5,436 (5,580) Related tax effect (1,197) 1,204 Balance at end of period $ 1,881 $ (4,904)

FAIR VALUE OF ASSETS AND LIAB_2

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2019
FAIR VALUE OF ASSETS AND LIABILITIES
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, 2019 Assets Securities available for sale $ — $ 204,133 $ — $ 204,133 Loans held for sale — 102,121 — 102,121 Mortgage servicing rights — 16,067 — 16,067 Derivative loan commitments — — 2,735 2,735 Forward loan sale commitments — — 227 227 Interest rate swaps — 20,103 — 20,103 $ — $ 342,424 $ 2,962 $ 345,386 Liabilities Derivative loan commitments $ — $ — $ 150 $ 150 Forward loan sale commitments — — 296 296 Interest rate swaps — 20,103 — 20,103 $ — $ 20,103 $ 446 $ 20,549 December 31, 2018 Assets Securities available for sale $ — $ 209,293 $ — $ 209,293 Loans held for sale — 42,107 — 42,107 Mortgage servicing rights — 22,217 — 22,217 Derivative loan commitments — — 1,261 1,261 Interest rate swaps — 3,193 — 3,193 $ — $ 276,810 $ 1,261 $ 278,071 Liabilities Derivative loan commitments $ — $ — $ 112 $ 112 Forward loan sale commitments — — 518 518 Interest rate swaps — 3,193 — 3,193 $ — $ 3,193 $ 630 $ 3,823
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, 2019 2018 2019 2018 (in thousands) Assets: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ 2,494 $ 1,755 $ 1,261 $ 1,093 Total gains included in net income (1) 468 (107) 1,701 555 Balance at end of period $ 2,962 $ 1,648 $ 2,962 $ 1,648 Changes in unrealized gains relating to instruments at period end $ 2,962 $ 1,648 $ 2,962 $ 1,648
Schedule of changes in Level 3 liabilities measured at fair value on a recurring basis	Liabilities: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ (1,182) $ (500) $ (630) $ (119) Total gains (losses) included in net income (1) 736 468 184 87 Balance at end of period $ (446) $ (32) $ (446) $ (32) Changes in unrealized losses relating to instruments at period end $ (446) $ (32) $ (446) $ (32) (1) Included in mortgage banking income on the Consolidated Statements of Net Income.
Schedule of assets measured at fair value on a non-recurring basis	The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets. September 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Impaired loans $ — $ — $ 1,981 $ — $ — $ 2,086 Other real estate owned and repossessed assets — — 377 — — 749 $ — $ — $ 2,358 $ — $ — $ 2,835 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, 2019 and December 31, 2018, respectively. Losses on fully charged off loans are not included in the table. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Impaired loans $ 207 $ — $ 251 $ 34 Other real estate owned and repossessed assets 21 — 88 5 $ 228 $ — $ 339 $ 39
Schedule of estimated fair values and related carrying amounts of financial instruments	September 30, 2019 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 238,631 $ 238,631 $ — $ — $ 238,631 Securities available for sale 204,133 — 204,133 — 204,133 Securities held to maturity 27,099 — 27,099 — 27,099 Federal Home Loan Bank stock 13,466 — — 13,466 13,466 Loans held for sale 102,121 — 102,121 — 102,121 Loans, net 3,089,220 — — 3,138,453 3,138,453 Retirement plan annuities 13,231 — — 13,231 13,231 Mortgage servicing rights 16,067 — 16,067 — 16,067 Accrued interest receivable 9,835 — 9,835 — 9,835 Financial liabilities: Deposits 2,924,508 — — 2,925,230 2,925,230 Borrowed funds 271,140 — 271,937 — 271,937 Subordinated debt 33,875 — — 35,383 35,383 Mortgagors' escrow accounts 6,251 — — 6,251 6,251 Accrued interest payable 806 — 806 — 806 Derivative loan commitments: Assets 2,735 — — 2,735 2,735 Liabilities 150 — — 150 150 Interest rate swap agreements: Assets 20,103 — 20,103 — 20,103 Liabilities 20,103 — 20,103 — 20,103 Forward loan sale commitments: Assets 227 — — 227 227 Liabilities 296 — — 296 296 December 31, 2018 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 105,521 $ 105,521 $ — $ — $ 105,521 Securities available for sale 209,293 — 209,293 — 209,293 Securities held to maturity 44,688 — 44,706 — 44,706 Federal Home Loan Bank stock 24,969 — — 24,969 24,969 Loans held for sale 42,107 — 42,107 — 42,107 Loans, net 2,964,852 — — 2,959,333 2,959,333 Retirement plan annuities 12,931 — — 12,931 12,931 Mortgage servicing rights 22,217 — 22,217 — 22,217 Accrued interest receivable 9,996 — 9,996 — 9,996 Financial liabilities: Deposits 2,685,061 — — 2,678,989 2,678,989 Borrowed funds 519,936 — 518,224 — 518,224 Subordinated debt 33,799 — — 34,338 34,338 Mortgagors' escrow accounts 4,551 — — 4,551 4,551 Accrued interest payable 1,611 — 1,611 — 1,611 Derivative loan commitments: Assets 1,261 — — 1,261 1,261 Liabilities 112 — — 112 112 Interest rate swap agreements: Assets 3,193 — 3,193 — 3,193 Liabilities 3,193 — 3,193 — 3,193 Forward loan sale commitments: Assets — — — — — Liabilities 518 — — 518 518

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2019
EARNINGS PER SHARE (“EPS”)
Schedule of basic and diluted earnings per share	Three Months Ended September 30, 2019 2018 Net income applicable to common stock (in thousands) $ 7,113 $ 5,928 Average number of common shares outstanding 58,453,259 58,538,529 Less: Average unallocated ESOP shares (2,814,525) (1,847,404) Average number of common shares outstanding used to calculate basic earnings per common share 55,638,734 56,691,125 Common stock equivalents — 1,079 Average number of common shares outstanding used to calculate diluted earnings per common share 55,638,734 56,692,204 Earnings per common share: Basic $ 0.13 $ 0.10 Diluted $ 0.13 $ 0.10 Nine Months Ended September 30, 2019 2018 Net income applicable to common stock (in thousands) $ 13,961 $ 11,283 Average number of common shares outstanding 58,461,953 58,565,130 Less: Average unallocated ESOP shares (1,606,023) (1,874,956) Average number of common shares outstanding used to calculate basic earnings per common share 56,855,930 56,690,174 Common stock equivalents — 359 Average number of common shares outstanding used to calculate diluted earnings per common share 56,855,930 56,690,533 Earnings per common share: Basic $ 0.25 $ 0.20 Diluted $ 0.25 $ 0.20 Share amounts related to periods prior to the August 14, 2019 closing of the conversion offering have been restated to give retroactive recognition to the 1.795431 exchange ratio applied in the conversion offering.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2019
SEGMENT REPORTING
Summary of reportable segments	Three Months Ended September 30, 2019 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income (expense) $ 27,855 $ 285 $ (155) $ — $ 27,985 Provision for loan losses 889 — — — 889 Net interest and dividend income (loss), after provision for loan losses 26,966 285 (155) — 27,096 Mortgage banking income: Changes in mortgage servicing rights fair value (591) (1,883) — — (2,474) Other (24) 14,003 — — 13,979 Total mortgage banking income (loss) (615) 12,120 — — 11,505 Other noninterest income (loss) 5,772 (4) — — 5,768 Total noninterest income 5,157 12,116 — — 17,273 Noninterest expense 24,405 11,227 571 — 36,203 Income (loss) before income taxes 7,718 1,174 (726) — 8,166 Provision (benefit) for income taxes 1,019 171 (137) — 1,053 Net income (loss) $ 6,699 $ 1,003 $ (589) $ — $ 7,113 Nine Months Ended September 30, 2019 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income (expense) $ 81,296 $ 604 $ (1,172) $ — $ 80,728 Provision for loan losses 3,496 — — — 3,496 Net interest and dividend income (loss), after provision for loan losses 77,800 604 (1,172) — 77,232 Mortgage banking income: Changes in mortgage servicing rights fair value (1,599) (5,267) — — (6,866) Other 262 31,266 — — 31,528 Total mortgage banking income (loss) (1,337) 25,999 — — 24,662 Other noninterest income (loss) 18,191 (20) — — 18,171 Total noninterest income 16,854 25,979 — — 42,833 Noninterest expense 74,527 27,496 1,853 — 103,876 Income (loss) before income taxes 20,127 (913) (3,025) — 16,189 Provision (benefit) for income taxes 3,267 (256) (783) — 2,228 Net income (loss) $ 16,860 $ (657) $ (2,242) $ — $ 13,961 Total assets at period end $ 3,821,671 $ 152,800 $ 693,851 $ (719,302) $ 3,949,020 Goodwill at period end $ 58,875 $ 10,760 $ — $ — $ 69,635 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 and dividend 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 and dividend income, after provision for loan losses 59,103 739 (28) — 59,814 Mortgage banking income: Changes in mortgage servicing rights fair value — — 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

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands	Aug. 14, 2019USD ($)$ / sharesshares	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)companyOfficeitemstate	Aug. 13, 2019
Gross proceeds from sale of common stock	$ 310,400		$ 304,111
Expenses incurred	6,300	$ 6,300	6,300
Net proceeds from sale of common stock	$ 304,100
Shares issued | shares	31,036,812
Shares issued (in dollars per share) | $ / shares	$ 10
Stock conversion ratio	1.795431
Shares issued in exchange | shares	12,162,763
Amount utilized to fund new ESOP	$ 24,800		$ 24,830
Number of full-service bank offices | item			24
Number of limited-service bank offices | item			1
HarborOne Bank
Number of security corporation subsidiaries | company			2
Cash invested into Bank's operations	$ 151,300
HarborOne Mortgage
Number of offices | Office			30
Additional states licensed to lend | state			4
HarborOne Bancorp Inc. | MHC
Ownership percentage				53.00%
Residential | LTV 80 to 100 Percent
Loan To Value Ratio			80.00%

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Acquisition of Coastway (Details) - USD ($) $ in Thousands	Oct. 05, 2018	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Business Acquisition [Line Items]
Assets		$ 3,949,020	$ 3,653,121	$ 2,852,800
Loans		3,106,472	2,980,252
Deposits		$ 2,924,508	$ 2,685,061
Coastway Bancorp, Inc.
Business Acquisition [Line Items]
Assets	$ 835,100
Loans	736,200
Deposits	478,300
Coastway
Business Acquisition [Line Items]
Acquisition cost	$ 125,600

SECURITIES - Gross unrealized g

SECURITIES - Gross unrealized gains and losses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities available for sale
Amortized Cost	$ 201,720	$ 212,316
Gross Unrealized Gains	2,633	512
Gross Unrealized Losses	220	3,535
Fair Value	204,133	209,293
Securities held to maturity
Amortized Cost	27,099	44,688
Gross Unrealized Gains	643	540
Gross Unrealized Losses	6	522
Fair Value	27,736	44,706
U.S. government and government-sponsored enterprise obligations
Securities available for sale
Amortized Cost	22,995	27,997
Gross Unrealized Gains	237	71
Gross Unrealized Losses		527
Fair Value	23,232	27,541
U.S. government agency and government-sponsored residential mortgage-backed securities
Securities available for sale
Amortized Cost	118,206	105,340
Gross Unrealized Gains	1,443	335
Gross Unrealized Losses	207	1,658
Fair Value	119,442	104,017
Securities held to maturity
Amortized Cost	13,323	15,025
Gross Unrealized Gains	94	63
Gross Unrealized Losses	6	481
Fair Value	13,411	14,607
U.S. government-sponsored collateralized mortgage obligations
Securities available for sale
Amortized Cost	27,528	31,293
Gross Unrealized Gains	316
Gross Unrealized Losses	13	365
Fair Value	27,831	30,928
Securities held to maturity
Amortized Cost	1,516	1,724
Gross Unrealized Gains	77	29
Fair Value	1,593	1,753
SBA asset-backed securities
Securities available for sale
Amortized Cost	32,991	47,686
Gross Unrealized Gains	637	106
Gross Unrealized Losses		985
Fair Value	33,628	46,807
Securities held to maturity
Amortized Cost	5,309	5,818
Gross Unrealized Gains	173	42
Gross Unrealized Losses		41
Fair Value	5,482	5,819
Municipal bonds
Securities held to maturity
Amortized Cost	6,951	22,121
Gross Unrealized Gains	299	406
Fair Value	$ 7,250	$ 22,527

SECURITIES - Contractual maturi

SECURITIES - Contractual maturity (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)securityitem	Sep. 30, 2019USD ($)securityitem	Dec. 31, 2018USD ($)security
Securities
Number of securities pledged | security	9	9	0
Pledged as collateral	$ 23,700	$ 23,700
Amortized Cost-Available-for-Sale
After 5 years through 10 years	22,995	22,995
Total for contractual maturity	22,995	22,995
Amortized Cost	201,720	201,720	$ 212,316
Fair Value-Available-for-Sale
After 5 years through 10 years	23,232	23,232
Total for contractual maturity	23,232	23,232
Total	204,133	204,133	209,293
Amortized Cost-Held-to-Maturity
After 5 years through 10 years	1,152	1,152
Over 10 years	5,799	5,799
Total for contractual maturity	6,951	6,951
Amortized Cost	27,099	27,099	44,688
Fair Value-Held-to-Maturity
After 5 years through 10 years	1,252	1,252
Over 10 years	5,998	5,998
Total for contractual maturity	7,250	7,250
Total	27,736	$ 27,736	44,706
Number of sales of securities | item		6
Sales
Proceeds		$ 28,391
Gross gains		1,267
Calls
Proceeds	11,775	20,145
Gross gains	$ 77	$ 77
Available-for-sale securities
Fair Value-Held-to-Maturity
Number of calls of securities | item	1	1
HTM securities
Fair Value-Held-to-Maturity
Number of calls of securities | security	7	15
Minimum
Fair Value-Held-to-Maturity
Maturity period		2 years
Maximum
Fair Value-Held-to-Maturity
Maturity period		27 years
U.S. government agency and government-sponsored residential mortgage-backed securities
Amortized Cost-Available-for-Sale
No single maturity date	$ 118,206	$ 118,206
Amortized Cost	118,206	118,206	105,340
Fair Value-Available-for-Sale
No single maturity date	119,442	119,442
Total	119,442	119,442	104,017
Amortized Cost-Held-to-Maturity
No single maturity date	13,323	13,323
Amortized Cost	13,323	13,323	15,025
Fair Value-Held-to-Maturity
No single maturity date	13,411	13,411
Total	13,411	13,411	14,607
U.S. government-sponsored collateralized mortgage obligations
Amortized Cost-Available-for-Sale
No single maturity date	27,528	27,528
Amortized Cost	27,528	27,528	31,293
Fair Value-Available-for-Sale
No single maturity date	27,831	27,831
Total	27,831	27,831	30,928
Amortized Cost-Held-to-Maturity
No single maturity date	1,516	1,516
Amortized Cost	1,516	1,516	1,724
Fair Value-Held-to-Maturity
No single maturity date	1,593	1,593
Total	1,593	1,593	1,753
SBA asset-backed securities
Amortized Cost-Available-for-Sale
No single maturity date	32,991	32,991
Amortized Cost	32,991	32,991	47,686
Fair Value-Available-for-Sale
No single maturity date	33,628	33,628
Total	33,628	33,628	46,807
Amortized Cost-Held-to-Maturity
No single maturity date	5,309	5,309
Amortized Cost	5,309	5,309	5,818
Fair Value-Held-to-Maturity
No single maturity date	5,482	5,482
Total	$ 5,482	$ 5,482	$ 5,819

SECURITIES - Gross unrealized l

SECURITIES - Gross unrealized losses aggregated by category (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)
Securities
Number of debt securities with unrealized loss | security	15
Amortized cost of securities with unrealized losses	$ 38,500
Aggregate depreciation of securities with unrealized losses (as a percent)	0.59%
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months	$ 83	$ 55
Twelve Months and Over	137	3,480
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months	20,434	12,714
Twelve Months and Over	15,142	152,308
Continuous unrealized losses, Gross Unrealized Losses, Held-to-Maturity
Twelve Months and Over	6	522
Continuous unrealized losses, Fair Value, Held-for-Maturity
Twelve Months and Over	2,703	15,772
U.S. government and government-sponsored enterprise obligations
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Twelve Months and Over		527
Continuous unrealized losses, Fair Value, Available-for-Sale
Twelve Months and Over		17,460
U.S. government agency and government-sponsored residential mortgage-backed securities
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months	83	55
Twelve Months and Over	124	1,603
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months	19,232	12,714
Twelve Months and Over	11,244	67,060
Continuous unrealized losses, Gross Unrealized Losses, Held-to-Maturity
Twelve Months and Over		481
Continuous unrealized losses, Fair Value, Held-for-Maturity
Twelve Months and Over		12,938
U.S. government-sponsored collateralized mortgage obligations
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Twelve Months and Over	13	365
Continuous unrealized losses, Fair Value, Available-for-Sale
Twelve Months and Over	3,898	30,928
SBA asset-backed securities
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Twelve Months and Over		985
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months	$ 1,202
Twelve Months and Over		36,860
Continuous unrealized losses, Gross Unrealized Losses, Held-to-Maturity
Twelve Months and Over		41
Continuous unrealized losses, Fair Value, Held-for-Maturity
Twelve Months and Over		$ 2,834

LOANS HELD FOR SALE - (Details)

LOANS HELD FOR SALE - (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Fair value and contractual principal outstanding:
Loans held for sale, fair value	$ 102,121,000	$ 42,107,000
Loans held for sale, contractual principal outstanding	99,422,000	40,692,000
Fair value less unpaid principal balance	2,699,000	1,415,000
90 Days or More
Fair value and contractual principal outstanding:
Loans held for sale, fair value	$ 0	$ 0

LOANS - Summary of Balances of

LOANS - Summary of Balances of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Loans
Total loans	$ 3,106,472		$ 2,980,252
Net deferred loan costs	5,792		5,255
Less: Allowance for loan losses	(23,044)	$ (22,261)	(20,655)	$ (19,440)	$ (19,244)	$ (18,489)
Net loans	3,089,220		2,964,852
Mortgage loans on real estate
Loans
Total loans	2,362,289		2,211,536
Residential
Loans
Total loans	1,113,704		1,115,456
Less: Allowance for loan losses	(3,175)	(3,100)	(3,239)	(3,159)	(3,461)	(4,000)
Residential | 1-4 family
Loans
Total loans	946,792		942,659
Residential | Second mortgages and equity lines of credit
Loans
Total loans	152,494		158,138
Residential | Residential Construction
Loans
Total loans	14,418		14,659
Commercial real estate
Loans
Total loans	1,088,036		934,420
Less: Allowance for loan losses	(11,840)	(11,100)	(10,059)	(9,432)	(8,672)	(7,835)
Commercial Construction
Loans
Total loans	160,549		161,660
Less: Allowance for loan losses	(2,561)	(2,927)	(2,707)	(2,012)	(2,367)	(1,810)
Commercial
Loans
Total loans	298,652		277,271
Less: Allowance for loan losses	(2,503)	(2,512)	(2,286)	(2,210)	(1,969)	(2,254)
Consumer loans
Loans
Total loans	445,531		491,445
Less: Allowance for loan losses	(1,038)	$ (1,063)	(1,154)	$ (1,179)	$ (1,219)	$ (1,000)
Consumer loans | Auto
Loans
Total loans	434,047		478,863
Consumer loans | Personal
Loans
Total loans	$ 11,484		$ 12,582

LOANS - Loans Sold or Transferr

LOANS - Loans Sold or Transferred (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Commercial - real estate
Loans
Unpaid principal balance of loans serviced for others	$ 158.7	$ 140.9

LOANS - Allowance for Loan Loss

LOANS - Allowance for Loan Losses Activity and Allocation to Loan Segments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Dec. 31, 2018	Oct. 05, 2018
Activity in the allowance for loan losses
Balance	$ 22,261,000	$ 19,244,000	$ 20,655,000	$ 18,489,000
Provision (credit) for loan losses	889,000	632,000	3,496,000	2,326,000
Charge-offs	(259,000)	(514,000)	(1,629,000)	(1,591,000)
Recoveries	153,000	78,000	522,000	216,000
Balance	23,044,000	19,440,000	23,044,000	19,440,000
Allocation of the allowance to loan segments
Total loans					$ 3,106,472,000	$ 2,980,252,000
Total allowance for loan losses	22,261,000	19,244,000	20,655,000	18,489,000	23,044,000	20,655,000
Impaired loans
Activity in the allowance for loan losses
Balance			1,258,000
Balance	1,065,000		1,065,000
Allocation of the allowance to loan segments
Total loans					45,284,000	37,048,000
Total allowance for loan losses	1,065,000		1,258,000		1,065,000	1,258,000
Non-impaired loans
Activity in the allowance for loan losses
Balance			19,397,000
Balance	21,979,000		21,979,000
Allocation of the allowance to loan segments
Total loans					3,061,188,000	2,943,204,000
Total allowance for loan losses	21,979,000		19,397,000		21,979,000	19,397,000
Residential
Activity in the allowance for loan losses
Balance	3,100,000	3,461,000	3,239,000	4,000,000
Provision (credit) for loan losses	1,000	(262,000)	(226,000)	(828,000)
Charge-offs		(50,000)	(136,000)	(50,000)
Recoveries	74,000	10,000	298,000	37,000
Balance	3,175,000	3,159,000	3,175,000	3,159,000
Allocation of the allowance to loan segments
Total loans					1,113,704,000	1,115,456,000
Total allowance for loan losses	3,100,000	3,461,000	3,239,000	4,000,000	3,175,000	3,239,000
Residential | Impaired loans
Activity in the allowance for loan losses
Balance			1,205,000
Balance	1,051,000		1,051,000
Allocation of the allowance to loan segments
Total loans					28,809,000	30,720,000
Total allowance for loan losses	1,051,000		1,205,000		1,051,000	1,205,000
Residential | Non-impaired loans
Activity in the allowance for loan losses
Balance			2,034,000
Balance	2,124,000		2,124,000
Allocation of the allowance to loan segments
Total loans					1,084,895,000	1,084,736,000
Total allowance for loan losses	2,124,000		2,034,000		2,124,000	2,034,000
Commercial real estate
Activity in the allowance for loan losses
Balance	11,100,000	8,672,000	10,059,000	7,835,000
Provision (credit) for loan losses	739,000	760,000	1,775,000	1,597,000
Recoveries	1,000		6,000
Balance	11,840,000	9,432,000	11,840,000	9,432,000
Allocation of the allowance to loan segments
Total loans					1,088,036,000	934,420,000
Total allowance for loan losses	11,100,000	8,672,000	10,059,000	7,835,000	11,840,000	10,059,000
Commercial real estate | Impaired loans
Allocation of the allowance to loan segments
Total loans						2,502,000
Commercial real estate | Non-impaired loans
Activity in the allowance for loan losses
Balance			10,059,000
Balance	11,840,000		11,840,000
Allocation of the allowance to loan segments
Total loans					1,088,036,000	931,918,000
Total allowance for loan losses	11,840,000		10,059,000		11,840,000	10,059,000
Commercial Construction
Activity in the allowance for loan losses
Balance	2,927,000	2,367,000	2,707,000	1,810,000
Provision (credit) for loan losses	(366,000)	(355,000)	(146,000)	202,000
Balance	2,561,000	2,012,000	2,561,000	2,012,000
Allocation of the allowance to loan segments
Total loans					160,549,000	161,660,000
Total allowance for loan losses	2,927,000	2,367,000	2,707,000	1,810,000	2,561,000	2,707,000
Commercial Construction | Impaired loans
Allocation of the allowance to loan segments
Total loans					11,244,000
Commercial Construction | Non-impaired loans
Activity in the allowance for loan losses
Balance			2,707,000
Balance	2,561,000		2,561,000
Allocation of the allowance to loan segments
Total loans					149,305,000	161,660,000
Total allowance for loan losses	2,561,000		2,707,000		2,561,000	2,707,000
Commercial
Activity in the allowance for loan losses
Balance	2,512,000	1,969,000	2,286,000	2,254,000
Provision (credit) for loan losses	34,000	495,000	1,035,000	944,000
Charge-offs	(43,000)	(255,000)	(833,000)	(990,000)
Recoveries		1,000	15,000	2,000
Balance	2,503,000	2,210,000	2,503,000	2,210,000
Allocation of the allowance to loan segments
Total loans					298,652,000	277,271,000
Total allowance for loan losses	2,512,000	1,969,000	2,286,000	2,254,000	2,503,000	2,286,000
Commercial | Impaired loans
Activity in the allowance for loan losses
Balance			53,000
Balance	14,000		14,000
Allocation of the allowance to loan segments
Total loans					5,231,000	3,826,000
Total allowance for loan losses	14,000		53,000		14,000	53,000
Commercial | Non-impaired loans
Activity in the allowance for loan losses
Balance			2,233,000
Balance	2,489,000		2,489,000
Allocation of the allowance to loan segments
Total loans					293,421,000	273,445,000
Total allowance for loan losses	2,489,000		2,233,000		2,489,000	2,233,000
Consumer loans
Activity in the allowance for loan losses
Balance	1,063,000	1,219,000	1,154,000	1,000,000
Provision (credit) for loan losses	113,000	102,000	341,000	553,000
Charge-offs	(216,000)	(209,000)	(660,000)	(551,000)
Recoveries	78,000	67,000	203,000	177,000
Balance	1,038,000	1,179,000	1,038,000	1,179,000
Allocation of the allowance to loan segments
Total loans					445,531,000	491,445,000
Total allowance for loan losses	1,063,000	1,219,000	1,154,000	1,000,000	1,038,000	1,154,000
Consumer loans | Non-impaired loans
Activity in the allowance for loan losses
Balance			1,154,000
Balance	1,038,000		1,038,000
Allocation of the allowance to loan segments
Total loans					445,531,000	491,445,000
Total allowance for loan losses	1,038,000		1,154,000		1,038,000	1,154,000
Unallocated
Activity in the allowance for loan losses
Balance	1,559,000	1,556,000	1,210,000	1,590,000
Provision (credit) for loan losses	368,000	(108,000)	717,000	(142,000)
Balance	1,927,000	1,448,000	1,927,000	1,448,000
Allocation of the allowance to loan segments
Total allowance for loan losses	1,559,000	$ 1,556,000	1,210,000	$ 1,590,000	1,927,000	1,210,000
Unallocated | Non-impaired loans
Activity in the allowance for loan losses
Balance			1,210,000
Balance	1,927,000		1,927,000
Allocation of the allowance to loan segments
Total allowance for loan losses	1,927,000		1,210,000		1,927,000	1,210,000
Coastway
Allocation of the allowance to loan segments
Unpaid principal balance of purchased credit impaired loans							$ 5,400,000
Coastway | Residential
Allocation of the allowance to loan segments
Contractual amount of purchased credit impaired loans					4,800,000
Carrying value of purchased credit impaired loans					4,500,000
Expected cash flow of acquired loans pool			4,700,000
Accretable yield					164,000
Interest income	$ 30,000		$ 76,000
Purchased credit impaired loans included in delinquency					2,200,000	2,200,000
Purchased credit impaired loans included in nonaccrual					$ 2,300,000	$ 500,000

LOANS - Summary of Past Due and

LOANS - Summary of Past Due and Non-Accrual Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Summary of past due and non-accrual loans
Past Due	$ 18,127	$ 20,746
Loans on Non-accrual	27,570	17,711
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	3,135	4,303
60 to 89 Days
Summary of past due and non-accrual loans
Past Due	6,187	5,843
90 Days or More
Summary of past due and non-accrual loans
Past Due	8,805	10,600
Residential | 1-4 family
Summary of past due and non-accrual loans
Past Due	9,537	12,353
Loans on Non-accrual	10,604	12,120
Residential | 1-4 family | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	250	1,283
Residential | 1-4 family | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	4,581	4,554
Residential | 1-4 family | 90 Days or More
Summary of past due and non-accrual loans
Past Due	4,706	6,516
Residential | Second mortgages and equity lines of credit
Summary of past due and non-accrual loans
Past Due	1,582	1,837
Loans on Non-accrual	1,205	1,649
Residential | Second mortgages and equity lines of credit | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	519	846
Residential | Second mortgages and equity lines of credit | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	610	237
Residential | Second mortgages and equity lines of credit | 90 Days or More
Summary of past due and non-accrual loans
Past Due	453	754
Commercial real estate
Summary of past due and non-accrual loans
Past Due	533	298
Loans on Non-accrual		298
Commercial real estate | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	342
Commercial real estate | 90 Days or More
Summary of past due and non-accrual loans
Past Due	191	298
Commercial Construction
Summary of past due and non-accrual loans
Loans on Non-accrual	11,244
Commercial
Summary of past due and non-accrual loans
Past Due	3,917	3,159
Loans on Non-accrual	3,967	3,087
Commercial | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	601	34
Commercial | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	302	550
Commercial | 90 Days or More
Summary of past due and non-accrual loans
Past Due	3,014	2,575
Consumer loans | Auto
Summary of past due and non-accrual loans
Past Due	2,494	2,997
Loans on Non-accrual	534	541
Consumer loans | Auto | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	1,388	2,099
Consumer loans | Auto | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	681	446
Consumer loans | Auto | 90 Days or More
Summary of past due and non-accrual loans
Past Due	425	452
Consumer loans | Personal
Summary of past due and non-accrual loans
Past Due	64	102
Loans on Non-accrual	16	16
Consumer loans | Personal | 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	35	41
Consumer loans | Personal | 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	13	56
Consumer loans | Personal | 90 Days or More
Summary of past due and non-accrual loans
Past Due	$ 16	$ 5

LOANS - Impaired Loans (Details

LOANS - Impaired Loans (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Recorded Investment
Impaired loans without a valuation allowance	$ 27,976,000		$ 27,976,000		$ 17,781,000
Impaired loans with a valuation allowance	17,308,000		17,308,000		19,267,000
Total impaired loans	45,284,000		45,284,000		37,048,000
Unpaid Principal Balance
Impaired loans without a valuation allowance	29,398,000		29,398,000		19,322,000
Impaired loans with a valuation allowance	17,237,000		17,237,000		19,699,000
Total impaired loans	46,635,000		46,635,000		39,021,000
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans	1,065,000		1,065,000		1,258,000
Impaired loans
Average Recorded Investment	40,464,000	$ 34,036,000	40,232,000	$ 35,345,000
Interest Income Recognized	472,000	441,000	1,443,000	1,435,000
Interest Income Recognized on Cash Basis	388,000	340,000	1,169,000	1,134,000
Additional funds committed to be advanced in connection with impaired loans	0	0	0	0
Residential
Recorded Investment
Impaired loans without a valuation allowance	11,515,000		11,515,000		11,518,000
Impaired loans with a valuation allowance	17,294,000		17,294,000		19,202,000
Unpaid Principal Balance
Impaired loans without a valuation allowance	11,647,000		11,647,000		12,054,000
Impaired loans with a valuation allowance	17,223,000		17,223,000		19,634,000
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans	1,051,000		1,051,000		1,205,000
Impaired loans
Average Recorded Investment	29,375,000	31,712,000	30,316,000	32,552,000
Interest Income Recognized	451,000	441,000	1,399,000	1,427,000
Interest Income Recognized on Cash Basis	367,000	340,000	1,125,000	1,129,000
Commercial real estate
Recorded Investment
Impaired loans without a valuation allowance					2,502,000
Unpaid Principal Balance
Impaired loans without a valuation allowance					2,596,000
Impaired loans
Average Recorded Investment		391,000	671,000	351,000
Commercial Construction
Recorded Investment
Impaired loans without a valuation allowance	11,244,000		11,244,000
Unpaid Principal Balance
Impaired loans without a valuation allowance	11,244,000		11,244,000
Impaired loans
Average Recorded Investment	5,622,000		3,748,000	33,000
Commercial
Recorded Investment
Impaired loans without a valuation allowance	5,217,000		5,217,000		3,761,000
Impaired loans with a valuation allowance	14,000		14,000		65,000
Unpaid Principal Balance
Impaired loans without a valuation allowance	6,507,000		6,507,000		4,672,000
Impaired loans with a valuation allowance	14,000		14,000		65,000
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans	14,000		14,000		$ 53,000
Impaired loans
Average Recorded Investment	5,467,000	$ 1,933,000	5,497,000	2,409,000
Interest Income Recognized	21,000		44,000	8,000
Interest Income Recognized on Cash Basis	$ 21,000		$ 44,000	$ 5,000

LOANS - Troubled Debt Restructu

LOANS - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)contract	Sep. 30, 2018USD ($)contract	Sep. 30, 2019USD ($)contract	Sep. 30, 2018contract	Dec. 31, 2018USD ($)
LOANS
TDR modifications	$ 0	$ 0
Recorded investment of troubled debt restructurings	19,800		$ 19,800		$ 22,200
Recorded investment of troubled debt restructurings that were nonaccruing	$ 3,200		$ 3,200		$ 4,300
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, 2019USD ($)grade	Dec. 31, 2018USD ($)
Loans by risk rating
Number of grades utilized in internal loan rating system | grade	10
Total loans	$ 3,106,472	$ 2,980,252
Commercial real estate
Loans by risk rating
Total loans	1,088,036	934,420
Commercial real estate | Loans rated 1 - 6, pass
Loans by risk rating
Total loans	1,082,002	919,305
Commercial real estate | Loans rated 7, special mention
Loans by risk rating
Total loans	4,287	10,595
Commercial real estate | Loans rated 8, substandard
Loans by risk rating
Total loans		2,502
Commercial real estate | Loans not rated
Loans by risk rating
Total loans	1,747	2,018
Commercial
Loans by risk rating
Total loans	298,652	277,271
Commercial | Loans rated 1 - 6, pass
Loans by risk rating
Total loans	292,988	268,280
Commercial | Loans rated 7, special mention
Loans by risk rating
Total loans	421	5,165
Commercial | Loans rated 8, substandard
Loans by risk rating
Total loans	3,262	1,896
Commercial | Loans rated 9, doubtful
Loans by risk rating
Total loans	1,981	1,930
Commercial Construction
Loans by risk rating
Total loans	160,549	161,660
Commercial Construction | Loans rated 1 - 6, pass
Loans by risk rating
Total loans	134,643	147,124
Commercial Construction | Loans rated 7, special mention
Loans by risk rating
Total loans	14,662	$ 14,536
Commercial Construction | Loans rated 8, substandard
Loans by risk rating
Total loans	$ 11,244

MORTGAGE LOAN SERVICING - Key A

MORTGAGE LOAN SERVICING - Key Assumptions (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Unpaid Principal Balance
Unpaid principal balances of mortgage loans serviced	$ 1,870	$ 1,990
Prepayment speed	14.41%	9.45%
Discount rate	9.33%	9.32%
Default rate	2.56%	2.06%

MORTGAGE LOAN SERVICING - Fair

MORTGAGE LOAN SERVICING - Fair value of MSR (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Changes to the fair value of Mortgage Servicing Rights
Mortgage servicing rights, at fair value, beginning of period	$ 18,156	$ 22,832	$ 22,217	$ 21,092
Additions	385	1,294	716	2,318
Changes in fair value due to :
Reductions from loans paid off during the period	(585)	(521)	(1,363)	(1,362)
Changes in valuation inputs or assumptions	(1,889)	143	(5,503)	1,700
Mortgage servicing rights, at fair value, end of period	16,067	23,748	16,067	23,748
Fees and commissions, mortgage banking and servicing	$ 1,300	$ 1,300	$ 4,100	$ 4,000

GOODWILL (Details)

GOODWILL (Details) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Goodwill [Roll Forward]
Goodwill		$ 69,635,000	$ 70,100,000	$ 13,660,000
Fair value adjustments to goodwill	$ (453,000)
Goodwill impairment		$ 0

DEPOSITS - Summary of deposits

DEPOSITS - Summary of deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
DEPOSITS
NOW and demand deposit accounts	$ 589,979	$ 556,517
Regular savings and club accounts	585,327	482,088
Money market deposit accounts	875,804	758,933
Total non-certificate accounts	2,051,110	1,797,538
Term certificate accounts greater than $250,000	166,404	180,305
Term certificate accounts less than or equal to $250,000	640,520	629,710
Brokered deposits	66,474	77,508
Total certificate deposits, net	873,398	887,523
Total deposits	2,924,508	2,685,061
Total reciprocal deposits	$ 218,300	$ 110,400

DEPOSITS - Maturity of deposits

DEPOSITS - Maturity of deposits (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Summary of certificate accounts by maturity
Within 1 year	$ 607,505
Over 1 year to 2 years	213,143
Over 2 years to 3 years	41,171
Over 3 years to 4 years	12,084
Over 4 years to 5 years	1,100
Total certificate deposits	875,003
Less unaccreted acquisition discount	(1,605)
Total certificate deposits, net	$ 873,398	$ 887,523
Summary of certificate accounts by maturity
Within 1 year	2.21%
Over 1 year to 2 years	2.27%
Over 2 years to 3 years	1.91%
Over 3 years to 4 years	2.10%
Over 4 years to 5 years	1.65%
Weighted average interest rate	2.21%

BORROWED FUNDS - FHLB Advances

BORROWED FUNDS - FHLB Advances (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Short-term borrowed funds	$ 60,000	$ 290,000
Scheduled Maturity
2019	50,000
2019		90,000
2020	87,000	77,000
2021	41,750	41,750
2023	20,196	20,199
2024	10,000
2025 and thereafter	2,194	987
Total	211,140	229,936
Redeemable at Call Date
2019	80,000
2019		120,000
2020	97,000	87,000
2021	21,750	21,750
2023	196	199
2024	10,000
2025 and thereafter	2,194	987
Total	$ 211,140	$ 229,936
Weighted Average Rate
2019	2.40%
2019		2.06%
2020	2.25%	2.25%
2021	2.47%	1.95%
2023	2.51%	1.56%
2024	1.68%
2025 and thereafter	1.10%
Total	2.32%	2.05%
Weighted Average Rate
Weighted average rate	2.15%	2.65%

BORROWED FUNDS - Others (Detail

BORROWED FUNDS - Others (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Federal Reserve Bank of Boston
Borrowed funds
Percentage of carrying value pledged as collateral	82.00%
Amortized borrowing capacity	$ 54,900,000	$ 70,600,000
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	77.00%
Other Loans
Borrowed funds
Percentage of carrying value pledged as collateral on FHLB advances	64.00%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Mar. 31, 2019
Provision (benefit) for income taxes	$ 1,053,000	$ 818,000	$ 2,228,000	$ 2,577,000
Effective tax rate	12.90%	12.10%	13.80%	18.60%
Federal
Tax refund	$ 1,300,000		$ 1,300,000		$ 603,000
State
Tax refund	$ 39,700		$ 39,700		$ 211,000	$ 320,000

OTHER COMMITMENTS AND CONTING_3

OTHER COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Commitments to grant loans
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	$ 171,167	$ 47,958
Unadvanced funds on home equity lines of credit
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	154,734	138,227
Unadvanced funds on revolving lines of credit
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	137,405	125,257
Unadvanced funds on construction loans
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	$ 115,914	$ 111,333

DERIVATIVES (Details)

DERIVATIVES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Derivative disclosures
Pledged as collateral	$ 23,700		$ 23,700
Gain (loss) on interest rate derivative instruments not designated as hedging instrument	1,203	$ 361	1,884	$ 642
Not designated as hedging instruments | Other assets
Derivative disclosures
Fair Value, Assets	23,065		23,065		$ 4,454
Not designated as hedging instruments | Other liabilities
Derivative disclosures
Fair Value, Liabilities	20,549		$ 20,549		3,823
Derivative loan commitments
Derivative disclosures
Loan commitment specified period			60 days
Derivative loan commitments | Mortgage banking income
Derivative disclosures
Gain (loss) on interest rate derivative instruments not designated as hedging instrument	421	(358)	$ 1,435	247
Derivative loan commitments | Not designated as hedging instruments
Derivative disclosures
Notional Amount	220,102		220,102		71,325
Derivative loan commitments | Not designated as hedging instruments | Other assets
Derivative disclosures
Fair Value, Assets	2,735		2,735		1,261
Derivative loan commitments | Not designated as hedging instruments | Other liabilities
Derivative disclosures
Fair Value, Liabilities	150		150		112
Forward loan sale commitments | Mortgage banking income
Derivative disclosures
Gain (loss) on interest rate derivative instruments not designated as hedging instrument	782	$ 719	449	$ 395
Forward loan sale commitments | Not designated as hedging instruments
Derivative disclosures
Notional Amount	187,500		187,500		54,500
Forward loan sale commitments | Not designated as hedging instruments | Other assets
Derivative disclosures
Fair Value, Assets	227		227
Forward loan sale commitments | Not designated as hedging instruments | Other liabilities
Derivative disclosures
Fair Value, Liabilities	296		296		518
Interest rate swaps | Not designated as hedging instruments
Derivative disclosures
Notional Amount	618,928		618,928		285,541
Interest rate swaps | Not designated as hedging instruments | Other assets
Derivative disclosures
Fair Value, Assets	20,103		20,103		3,193
Interest rate swaps | Not designated as hedging instruments | Other liabilities
Derivative disclosures
Fair Value, Liabilities	20,103		20,103		3,193
Risk Participation Agreements | Not designated as hedging instruments
Derivative disclosures
Notional Amount	$ 104,049		$ 104,049		$ 80,418

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details)	Aug. 14, 2019	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)
STOCK-BASED COMPENSATION
Stock based compensation expense		$ 1,300,000	$ 535,000	$ 3,700,000	$ 3,300,000
Stock conversion ratio	1.795431

STOCK-BASED COMPENSATION - Valu

STOCK-BASED COMPENSATION - Valuation assumptions (Details) - Stock Options	9 Months Ended
	Sep. 30, 2019$ / sharesshares
STOCK-BASED COMPENSATION
Granted | shares	573,440
Vesting period (years)	3 years
Term (years)	10 years
Weighted average expected volatility	22.00%
Expected life (years)	6 years
Weighted average risk free interest rate	2.47%
Weighted average fair value per option	$ 2.49
Minimum
STOCK-BASED COMPENSATION
Weighted average expected volatility	22.00%
Weighted average risk free interest rate	2.47%
Weighted average fair value per option	$ 2.49

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock options (Details) - Stock Options	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Stock Option Awards
Balance at the beginning of the period | shares	1,778,407
Granted | shares	573,440
Forfeited | shares	(41,894)
Expired | shares	(69,646)
Balance at the end of the period | shares	2,240,307
Exercisable at end of the period | shares	925,778
Unrecognized cost inclusive of directors' awards | $	$ 2,886,000
Weighted average remaining recognition period (years)	1 year 9 months 7 days
Weighted Average Exercise Price
Balance at the beginning of the period | $ / shares	$ 10.17
Granted | $ / shares	9.07
Forfeited | $ / shares	10.23
Expired | $ / shares	10.23
Balance at the end of the period | $ / shares	9.88
Exercisable at end of the period | $ / shares	$ 10.23
Weighted Average Remaining Contractual Term (years)
Weighted average remaining contractual term, balance (years)	8 years 6 months
Exercisable at end of the period	7 years 10 months 24 days
Aggregate Intrinsic Value
Balance at the end of the period | $	$ 647,000
Stock Option Awards, Nonvested
Balance at the beginning of the period | shares	1,249,793
Granted | shares	573,440
Vested | shares	(466,810)
Forfeited | shares	(41,894)
Balance at the end of the period | shares	1,314,529
Weighted Average Exercise Price, Nonvested
Balance at the beginning of the period | $ / shares	$ 2.82
Granted | $ / shares	2.49
Vested | $ / shares	2.83
Forfeited | $ / shares	2.82
Balance at the end of the period | $ / shares	$ 2.68

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock (Details) - Restricted Stock	9 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Outstanding Restricted Stock Awards
Non-vested stock awards, beginning balance | shares	617,293
Vested | shares	(298,484)
Granted | shares	43,876
Forfeited | shares	(17,356)
Non-vested stock awards, ending balance | shares	345,329
Unrecognized cost inclusive of directors' awards | $	$ 3,093,000
Weighted average remaining recognition period (years)	1 year 1 month 13 days
Weighted Average Grant Price
Non-vested stock awards, beginning balance | $ / shares	$ 10.24
Vested | $ / shares	10.23
Granted | $ / shares	9.90
Forfeited | $ / shares	10.23
Non-vested stock awards, ending balance | $ / shares	$ 10.19

MINIMUM REGULATORY CAPITAL RE_3

MINIMUM REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
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	2.50%
Common equity Tier 1 to risk-weighted assets [Abstract]
Actual, Capital amount	$ 583,319	$ 283,738
Actual, Ratio (as a percent)	19.10%	9.90%
Minimum Requirement for Capital Adequacy Purposes	$ 137,098	$ 129,246
Minimum Requirement for Capital Adequacy Purposes (as a percent)	4.50%	4.50%
Tier 1 capital to risk weighted assets
Actual, Capital amount	$ 583,319	$ 283,738
Actual, Ratio (as a percent)	19.10%	9.90%
Minimum Requirement for Capital Adequacy Purposes	$ 182,798	$ 172,328
Minimum Requirement for Capital Adequacy Purposes (as a percent)	6.00%	6.00%
Total capital to risk-weighted assets
Actual, Capital amount	$ 641,363	$ 339,393
Actual, Ratio (as a percent)	21.10%	11.80%
Minimum Requirement for Capital Adequacy Purposes	$ 243,730	$ 229,771
Minimum Requirement for Capital Adequacy Purposes (as a percent)	8.00%	8.00%
Tier 1 capital to average assets
Actual, Capital amount	$ 583,319	$ 283,738
Actual, Ratio (as a percent)	16.20%	8.20%
Minimum Requirement for Capital Adequacy Purposes	$ 144,313	$ 137,919
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	$ 446,714	$ 296,738
Actual, Ratio (as a percent)	14.70%	10.30%
Minimum Requirement for Capital Adequacy Purposes	$ 137,063	$ 129,250
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	$ 197,980	$ 186,694
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	$ 446,714	$ 296,738
Actual, Ratio (as a percent)	14.70%	10.30%
Minimum Requirement for Capital Adequacy Purposes	$ 182,751	$ 172,333
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	$ 243,668	$ 229,778
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	$ 469,758	$ 317,393
Actual, Ratio (as a percent)	15.40%	11.10%
Minimum Requirement for Capital Adequacy Purposes	$ 243,668	$ 229,778
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	$ 304,585	$ 287,222
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	$ 446,714	$ 296,738
Actual, Ratio (as a percent)	12.50%	8.60%
Minimum Requirement for Capital Adequacy Purposes	$ 143,335	$ 137,784
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	$ 179,169	$ 172,230
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, 2019	Dec. 31, 2018
Components of AOCI
Accumulated other comprehensive income (loss)	$ 1,881	$ (2,358)
Securities available for sale
Components of AOCI
Net unrealized gain (loss)	2,413	(3,023)
Related tax effect	(532)	665
Accumulated other comprehensive income (loss)	$ 1,881	$ (2,358)

COMPREHENSIVE INCOME (LOSS) - C

COMPREHENSIVE INCOME (LOSS) - Changes in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	$ 371,118	$ 348,576	$ 357,574	$ 343,484
Balance, end of period	659,554	353,345	659,554	353,345
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	1,466	(3,733)	(2,358)	(528)
Reclassification of stranded effect of tax rate change				(104)
Balance, end of period	1,881	(4,904)	1,881	(4,904)
Securities available for sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	1,466	(3,733)	(2,358)	(528)
Other comprehensive income (loss) before reclassifications	609	(1,501)	6,780	(5,476)
Amounts reclassified from accumulated other comprehensive income	(77)		(1,344)
Reclassification of stranded effect of tax rate change				(104)
Net current period other comprehensive income (loss)	532	(1,501)	5,436	(5,580)
Related tax effect	(117)	330	(1,197)	1,204
Balance, end of period	$ 1,881	$ (4,904)	$ 1,881	$ (4,904)

FAIR VALUE OF ASSETS AND LIAB_3

FAIR VALUE OF ASSETS AND LIABILITIES - Derivatives (Details)	Sep. 30, 2019	Dec. 31, 2018
Derivative loan commitments
Assets and liabilities measured on recurring basis
Weighted average pull-through rate	85.00%	85.00%

FAIR VALUE OF ASSETS AND LIAB_4

FAIR VALUE OF ASSETS AND LIABILITIES - Recurring basis (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019USD ($)item	Dec. 31, 2018USD ($)item	Jun. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Assets and liabilities measured on recurring basis
Number of transfers | item	0	0
Assets
Securities available for sale, at fair value	$ 204,133	$ 209,293
Loans held for sale	102,121	42,107
Mortgage servicing rights	16,067	22,217	$ 18,156	$ 23,748	$ 22,832	$ 21,092
Recurring
Assets
Securities available for sale, at fair value	204,133	209,293
Loans held for sale	102,121	42,107
Mortgage servicing rights	16,067	22,217
Total assets	345,386	278,071
Liabilities
Total liabilities	20,549	3,823
Recurring | Derivative loan commitments
Assets
Derivative assets	2,735	1,261
Liabilities
Derivative liabilities	150	112
Recurring | Forward loan sale commitments
Assets
Derivative assets	227
Liabilities
Derivative liabilities	296	518
Recurring | Interest rate swaps
Assets
Derivative assets	20,103	3,193
Liabilities
Derivative liabilities	20,103	3,193
Recurring | Level 2
Assets
Securities available for sale, at fair value	204,133	209,293
Loans held for sale	102,121	42,107
Mortgage servicing rights	16,067	22,217
Total assets	342,424	276,810
Liabilities
Total liabilities	20,103	3,193
Recurring | Level 2 | Interest rate swaps
Assets
Derivative assets	20,103	3,193
Liabilities
Derivative liabilities	20,103	3,193
Recurring | Level 3
Assets
Total assets	2,962	1,261
Liabilities
Total liabilities	446	630
Recurring | Level 3 | Derivative loan commitments
Assets
Derivative assets	2,735	1,261
Liabilities
Derivative liabilities	150	112
Recurring | Level 3 | Forward loan sale commitments
Assets
Derivative assets	227
Liabilities
Derivative liabilities	$ 296	$ 518

FAIR VALUE OF ASSETS AND LIAB_5

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, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Changes in Level 3 assets
Balance at beginning of period	$ 2,494	$ 1,755	$ 1,261	$ 1,093
Total gains included in net income	468	(107)	1,701	555
Balance at end of period	2,962	1,648	2,962	1,648
Changes in unrealized gains relating to instruments at period end	2,962	1,648	2,962	1,648
Changes in Level 3 liabilities
Balance at beginning of period	(1,182)	(500)	(630)	(119)
Total gains (losses) included in net income	736	468	184	87
Balance at end of period	(446)	(32)	(446)	(32)
Changes in unrealized losses relating to instruments at period end	$ (446)	$ (32)	$ (446)	$ (32)

FAIR VALUE OF ASSETS AND LIAB_6

FAIR VALUE OF ASSETS AND LIABILITIES - Impaired Loans (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Assets and liabilities measured on non-recurring basis
Total Losses	$ 228,000	$ 339,000	$ 39,000
Impaired loans
Assets and liabilities measured on non-recurring basis
Total Losses	207,000	251,000	34,000
Other real estate owned and repossessed assets
Assets and liabilities measured on non-recurring basis
Total Losses	21,000	88,000	$ 5,000
Non-recurring
Assets and liabilities measured on non-recurring basis
Fair value	0	0		$ 0
Non-recurring | Level 3
Assets and liabilities measured on non-recurring basis
Fair value	2,358,000	2,358,000		2,835,000
Non-recurring | Level 3 | Impaired loans
Assets and liabilities measured on non-recurring basis
Fair value	1,981,000	1,981,000		2,086,000
Non-recurring | Level 3 | Other real estate owned and repossessed assets
Assets and liabilities measured on non-recurring basis
Fair value	$ 377,000	$ 377,000		$ 749,000

FAIR VALUE OF ASSETS AND LIAB_7

FAIR VALUE OF ASSETS AND LIABILITIES - Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Financial assets:
Cash and cash equivalents	$ 238,631		$ 105,521
Securities available for sale, at fair value	204,133		209,293
Securities held to maturity, at amortized cost	27,099		44,688
Federal Home Loan Bank stock	13,466		24,969
Loans held for sale	102,121		42,107
Loans, net	3,089,220		2,964,852
Retirement plan annuities	13,231		12,931
Mortgage servicing rights	16,067	$ 18,156	22,217	$ 23,748	$ 22,832	$ 21,092
Accrued interest receivable	9,835		9,996
Financial liabilities:
Deposits	2,924,508		2,685,061
Subordinated debt	33,875		33,799
Mortgagors' escrow accounts	6,251		4,551
Accrued interest payable	806		1,611
Carrying Amount
Financial assets:
Cash and cash equivalents	238,631		105,521
Securities available for sale, at fair value	204,133		209,293
Securities held to maturity, at amortized cost	27,099		44,688
Federal Home Loan Bank stock	13,466		24,969
Loans held for sale	102,121		42,107
Loans, net	3,089,220		2,964,852
Retirement plan annuities	13,231		12,931
Mortgage servicing rights	16,067		22,217
Accrued interest receivable	9,835		9,996
Financial liabilities:
Deposits	2,924,508		2,685,061
Borrowed funds	271,140		519,936
Subordinated debt	33,875		33,799
Mortgagors' escrow accounts	6,251		4,551
Accrued interest payable	806		1,611
Carrying Amount | Derivative loan commitments
Derivative commitments/agreements:
Assets	2,735		1,261
Liabilities	150		112
Carrying Amount | Interest rate swaps
Derivative commitments/agreements:
Assets	20,103		3,193
Liabilities	20,103		3,193
Carrying Amount | Forward loan sale commitments
Derivative commitments/agreements:
Assets	227
Liabilities	296		518
Fair Value
Financial assets:
Cash and cash equivalents	238,631		105,521
Securities available for sale, at fair value	204,133		209,293
Securities held to maturity, at amortized cost	27,099		44,706
Federal Home Loan Bank stock	13,466		24,969
Loans held for sale	102,121		42,107
Loans, net	3,138,453		2,959,333
Retirement plan annuities	13,231		12,931
Mortgage servicing rights	16,067		22,217
Accrued interest receivable	9,835		9,996
Financial liabilities:
Deposits	2,925,230		2,678,989
Borrowed funds	271,937		518,224
Subordinated debt	35,383		34,338
Mortgagors' escrow accounts	6,251		4,551
Accrued interest payable	806		1,611
Fair Value | Derivative loan commitments
Derivative commitments/agreements:
Assets	2,735		1,261
Liabilities	150		112
Fair Value | Interest rate swaps
Derivative commitments/agreements:
Assets	20,103		3,193
Liabilities	20,103		3,193
Fair Value | Forward loan sale commitments
Derivative commitments/agreements:
Assets	227
Liabilities	296		518
Fair Value | Level 1
Financial assets:
Cash and cash equivalents	238,631		105,521
Fair Value | Level 2
Financial assets:
Securities available for sale, at fair value	204,133		209,293
Securities held to maturity, at amortized cost	27,099		44,706
Loans held for sale	102,121		42,107
Mortgage servicing rights	16,067		22,217
Accrued interest receivable	9,835		9,996
Financial liabilities:
Borrowed funds	271,937		518,224
Accrued interest payable	806		1,611
Fair Value | Level 2 | Interest rate swaps
Derivative commitments/agreements:
Assets	20,103		3,193
Liabilities	20,103		3,193
Fair Value | Level 3
Financial assets:
Federal Home Loan Bank stock	13,466		24,969
Loans, net	3,138,453		2,959,333
Retirement plan annuities	13,231		12,931
Financial liabilities:
Deposits	2,925,230		2,678,989
Subordinated debt	35,383		34,338
Mortgagors' escrow accounts	6,251		4,551
Fair Value | Level 3 | Derivative loan commitments
Derivative commitments/agreements:
Assets	2,735		1,261
Liabilities	150		112
Fair Value | Level 3 | Forward loan sale commitments
Derivative commitments/agreements:
Assets	227
Liabilities	$ 296		$ 518

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) $ / shares in Units, $ in Thousands		Aug. 14, 2019	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2018USD ($)$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2018USD ($)$ / sharesshares
EARNINGS PER SHARE
Net income applicable to common stock | $			$ 7,113	$ 5,928	$ 13,961	$ 11,283
Average number of common shares outstanding			58,453,259	58,538,529	58,461,953	58,565,130
Less: Average unallocated ESOP shares			(2,814,525)	(1,847,404)	(1,606,023)	(1,874,956)
Average number of common shares outstanding used to calculate basic earnings per common share	[1]		55,638,734	56,691,125	56,855,930	56,690,174
Common stock equivalents				1,079		359
Average number of common shares outstanding used to calculate diluted earnings per common share	[1]		55,638,734	56,692,204	56,855,930	56,690,533
Earnings per common share, Basic | $ / shares	[1]		$ 0.13	$ 0.10	$ 0.25	$ 0.20
Earnings per common share, Diluted | $ / shares	[1]		$ 0.13	$ 0.10	$ 0.25	$ 0.20
Stock conversion ratio		1.795431
Stock Options
EARNINGS PER SHARE
Antidilutive securities excluded from computation of earnings per share			2,240,307	1,420,647	2,240,307	1,420,647
[1]	Share amounts related to periods prior to the August 14, 2019 closing of the conversion offering have been restated to give retroactive recognition to the 1.795431 exchange ratio applied in the conversion offering.

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Segment Reporting Information
Number of reportable segments | segment			2
Net interest and dividend income (expense)	$ 27,985	$ 21,121	$ 80,728	$ 62,140
Provision for loan losses	889	632	3,496	2,326
Net interest and dividend income, after provision for loan losses	27,096	20,489	77,232	59,814
Mortgage banking income:
Changes in mortgage servicing rights fair value	(2,474)	(378)	(6,866)	338
Other	13,979	9,249	31,528	24,275
Total mortgage banking income	11,505	8,871	24,662	24,613
Other noninterest income (loss)	5,768	4,769	18,171	12,933
Total noninterest income	17,273	13,640	42,833	37,546
Noninterest expense	36,203	27,383	103,876	83,500
Income (loss) before income taxes	8,166	6,746	16,189	13,860
Provision (benefit) for income taxes	1,053	818	2,228	2,577
Net income	7,113	5,928	13,961	11,283
Total assets at period end	3,949,020	2,852,800	3,949,020	2,852,800	$ 3,653,121
Goodwill at period end	69,635	13,660	69,635	13,660
Operating Segments | HarborOne Bank Segment
Segment Reporting Information
Net interest and dividend income (expense)	27,855	20,943	81,296	61,429
Provision for loan losses	889	632	3,496	2,326
Net interest and dividend income, after provision for loan losses	26,966	20,311	77,800	59,103
Mortgage banking income:
Changes in mortgage servicing rights fair value	(591)	(59)	(1,599)	60
Other	(24)	720	262	1,599
Total mortgage banking income	(615)	661	(1,337)	1,659
Other noninterest income (loss)	5,772	4,785	18,191	12,922
Total noninterest income	5,157	5,446	16,854	14,581
Noninterest expense	24,405	18,824	74,527	58,975
Income (loss) before income taxes	7,718	6,933	20,127	14,709
Provision (benefit) for income taxes	1,019	888	3,267	2,825
Net income	6,699	6,045	16,860	11,884
Total assets at period end	3,821,671	2,855,386	3,821,671	2,855,386
Goodwill at period end	58,875	3,186	58,875	3,186
Operating Segments | HarborOne Mortgage Segment
Segment Reporting Information
Net interest and dividend income (expense)	285	308	604	739
Net interest and dividend income, after provision for loan losses	285	308	604	739
Mortgage banking income:
Changes in mortgage servicing rights fair value	(1,883)	(319)	(5,267)	278
Other	14,003	8,529	31,266	22,676
Total mortgage banking income	12,120	8,210	25,999	22,954
Other noninterest income (loss)	(4)	(16)	(20)	11
Total noninterest income	12,116	8,194	25,979	22,965
Noninterest expense	11,227	8,184	27,496	23,320
Income (loss) before income taxes	1,174	318	(913)	384
Provision (benefit) for income taxes	171	71	(256)	98
Net income	1,003	247	(657)	286
Total assets at period end	152,800	95,423	152,800	95,423
Goodwill at period end	10,760	10,474	10,760	10,474
Operating Segments | HarborOne Bancorp Segment
Segment Reporting Information
Net interest and dividend income (expense)	(155)	(130)	(1,172)	(28)
Net interest and dividend income, after provision for loan losses	(155)	(130)	(1,172)	(28)
Mortgage banking income:
Noninterest expense	571	375	1,853	1,205
Income (loss) before income taxes	(726)	(505)	(3,025)	(1,233)
Provision (benefit) for income taxes	(137)	(141)	(783)	(346)
Net income	(589)	(364)	(2,242)	(887)
Total assets at period end	693,851	387,427	693,851	387,427
Eliminations
Mortgage banking income:
Total assets at period end	$ (719,302)	$ (485,436)	$ (719,302)	$ (485,436)