HarborOne Bancorp (HONE) 10-Q6 Nov 202020 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Oct. 28, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Entity File Number	001-38955
Entity Registrant Name	HarborOne Bancorp, Inc.
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	81-1607465
Entity Address, Address Line One	770 Oak Street
Entity Address, City or Town	Brockton
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02301
City Area Code	508
Local Phone Number	895-1000
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	HONE
Security Exchange Name	NASDAQ
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		58,342,464
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 29,180	$ 24,464
Short-term investments	108,338	187,152
Total cash and cash equivalents	137,518	211,616
Securities available for sale, at fair value	280,308	239,473
Securities held to maturity, at amortized cost		26,372
Federal Home Loan Bank stock, at cost	11,631	17,121
Assets held for sale		8,536
Loans held for sale, at fair value	190,373	110,552
Loans	3,515,831	3,171,558
Less: Allowance for loan losses	(49,223)	(24,060)
Net loans	3,466,608	3,147,498
Accrued interest receivable	12,504	9,807
Other real estate owned and repossessed assets	898	719
Mortgage servicing rights, at fair value	20,159	17,150
Property and equipment, net	49,399	47,951
Retirement plan annuities	13,641	13,333
Bank-owned life insurance	87,400	85,735
Goodwill.	69,802	69,802
Intangible assets	4,694	6,035
Other assets	83,384	47,221
Total assets	4,428,319	4,058,921
Deposits:
Demand deposit accounts	650,336	406,403
NOW accounts	202,020	165,877
Regular savings and club accounts	912,017	626,685
Money market deposit accounts	815,644	856,830
Term certificate accounts	785,871	887,078
Total deposits	3,365,888	2,942,873
Short-term borrowed funds	95,000	183,000
Long-term borrowed funds	141,106	171,132
Subordinated debt	34,002	33,907
Mortgagors' escrow accounts	7,979	6,053
Accrued interest payable	1,001	1,669
Other liabilities and accrued expenses	89,240	54,493
Total liabilities	3,734,216	3,393,127
Commitments and contingencies (Notes 9 and 10)
Common stock, $0.01 par value; 150,000,000 shares authorized; 58,480,543 shares issued; 58,342,464 and 58,418,021 shares outstanding at September 30, 2020 and December 31, 2019, respectively	584	584
Additional paid-in capital	463,531	460,232
Retained earnings	261,304	237,356
Treasury stock, at cost, 138,079 and 71,201 shares at September 30, 2020 and December 31, 2019, respectively	(1,333)	(721)
Accumulated other comprehensive income	1,776	1,480
Unearned compensation - ESOP	(31,759)	(33,137)
Total stockholders' equity	694,103	665,794
Total liabilities and stockholders' equity	$ 4,428,319	$ 4,058,921

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
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	58,480,543	58,480,543
Common stock, shares outstanding	58,342,464	58,418,021
Treasury, shares	138,079	71,201

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest and dividend income:
Interest and fees on loans		$ 34,496	$ 36,230	$ 102,491	$ 106,033
Interest on loans held for sale		1,060	747	2,625	1,647
Interest on taxable securities		1,312	1,450	4,446	4,816
Interest on non-taxable securities		5	92	103	423
Other interest and dividend income		175	1,211	1,173	2,142
Total interest and dividend income		37,048	39,730	110,838	115,061
Interest expense:
Interest on deposits		4,520	9,972	19,018	27,577
Interest on FHLB borrowings		835	1,249	2,933	5,203
Interest on subordinated debentures		524	524	1,571	1,553
Total interest expense		5,879	11,745	23,522	34,333
Net interest and dividend income		31,169	27,985	87,316	80,728
Provision for loan losses		13,454	889	27,207	3,496
Net interest and dividend income, after provision for loan losses		17,715	27,096	60,109	77,232
Mortgage banking income:
Gain on sale of mortgage loans		34,055	11,015	77,195	24,086
Changes in mortgage servicing rights fair value		(193)	(2,474)	(5,691)	(6,866)
Other		4,281	2,964	10,962	7,442
Total mortgage banking income		38,143	11,505	82,466	24,662
Deposit account fees		3,451	4,186	10,351	12,020
Income on retirement plan annuities		104	104	308	300
Gain on sale and call of securities, net			77	2,533	1,344
Bank-owned life insurance income		560	256	1,665	762
Other income		2,203	1,145	4,642	3,745
Total noninterest income		44,461	17,273	101,965	42,833
Noninterest expense:
Compensation and benefits		29,839	23,238	78,493	63,068
Occupancy and equipment		4,581	4,171	13,296	13,030
Data processing		2,119	2,196	6,576	6,441
Loan expenses		3,189	1,704	7,433	4,309
Marketing		817	799	2,750	2,934
Deposit expenses		475	405	1,435	1,189
Postage and printing		455	435	1,386	1,345
Professional fees		1,458	889	4,204	3,219
Foreclosed and repossessed assets		27	42	165	(34)
Deposit insurance		310	(225)	860	1,030
Other expenses		2,452	2,549	8,350	7,345
Total noninterest expense		45,722	36,203	124,948	103,876
Income before income taxes		16,454	8,166	37,126	16,189
Income tax provision		4,561	1,053	9,934	2,228
Net income		$ 11,893	$ 7,113	$ 27,192	$ 13,961
Earnings per common share:
Basic	[1]	$ 0.22	$ 0.13	$ 0.50	$ 0.25
Diluted	[1]	$ 0.22	$ 0.13	$ 0.50	$ 0.25
Weighted average shares outstanding:
Basic	[1]	54,465,339	55,638,734	54,436,090	56,855,930
Diluted	[1]	54,465,339	55,638,734	54,436,090	56,855,930

[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 (see Note 1).

Consolidated Statements of Op_2

Consolidated Statements of Operations (Parenthetical)	Aug. 14, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Operations
Stock conversion ratio	1.795431	1.795431	1.795431	1.795431	1.795431

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 11,893	$ 7,113	$ 27,192	$ 13,961
Cash flow hedge:
Unrealized holding gains (losses)	32		(1,581)
Reclassification adjustment for net losses (gains) included in net income	82		(67)
Net change in unrealized gains (losses) on derivatives in cash flow hedging instruments	114		(1,648)
Related tax effect	(32)		461
Net-of-tax amount	82		(1,187)
Securities available for sale:
Unrealized holding gains (losses)	(1,335)	609	4,212	6,780
Reclassification of unrealized gain on securities transferred to available for sale			522
Reclassification adjustment for net realized gains		(77)	(2,533)	(1,344)
Net unrealized gains (losses)	(1,335)	532	2,201	5,436
Related tax effect	132	(117)	(718)	(1,197)
Net-of-tax amount	(1,203)	415	1,483	4,239
Total other comprehensive income (loss)	(1,121)	415	296	4,239
Comprehensive income	$ 10,772	$ 7,528	$ 27,488	$ 18,200

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 at 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	[1]	58,465,505
Comprehensive income					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				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 at 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	[1]	58,429,584
Balance at 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					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				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 at 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	[1]	58,429,584
Balance at beginning of period at Dec. 31, 2019		$ 584		460,232	237,356	(721)	1,480	(33,137)	$ 665,794
Balance, beginning of period (in shares) at Dec. 31, 2019		58,418,021	[1]						58,418,021
Comprehensive income					27,192		296		$ 27,488
Dividends declared					(3,244)				(3,244)
ESOP shares committed to be released				156				1,378	1,534
Restricted stock awards forfeited (in shares)	[1]	8,679
Share-based compensation expense				3,143					3,143
Treasury stock purchased						(612)			(612)
Treasury stock purchased (in shares)	[1]	(66,878)
Balance at end of period at Sep. 30, 2020		$ 584		463,531	261,304	(1,333)	1,776	(31,759)	$ 694,103
Balance, end of period (in shares) at Sep. 30, 2020		58,342,464	[1]						58,342,464
Balance at beginning of period at Jun. 30, 2020		$ 584		462,881	251,032	(721)	2,897	(32,218)	$ 684,455
Balance, beginning of period (in shares) at Jun. 30, 2020	[1]	58,418,021
Comprehensive income					11,893		(1,121)		10,772
Dividends declared					(1,621)				(1,621)
ESOP shares committed to be released				33				459	492
Restricted stock awards forfeited (in shares)	[1]	8,679
Share-based compensation expense				617					617
Treasury stock purchased						(612)			(612)
Treasury stock purchased (in shares)	[1]	(66,878)
Balance at end of period at Sep. 30, 2020		$ 584		$ 463,531	$ 261,304	$ (1,333)	$ 1,776	$ (31,759)	$ 694,103
Balance, end of period (in shares) at Sep. 30, 2020		58,342,464	[1]						58,342,464

[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 (see Note 1).

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020$ / sharesshares	Sep. 30, 2019USD ($)shares	Sep. 30, 2020$ / sharesshares	Sep. 30, 2019USD ($)shares
Consolidated Statements of Changes in Stockholders' Equity
Dividends declared per share \| $ / shares	$ 0.03		$ 0.06
ESOP shares committed to be released (in shares)	57,680	78,588	173,042	108,268
Shares purchased by the ESOP		2,482,945		2,482,945
Conversion costs \| $		$ 6.3		$ 6.3
Stock conversion ratio	1.795431	1.795431	1.795431	1.795431

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 27,192	$ 13,961
Adjustments to reconcile net income to net cash used by operating activities:
Provision for loan losses	27,207	3,496
Net amortization of securities premiums/discounts	1,371	196
Proceeds from sale of loans	1,715,878	716,894
Loans originated for sale	(1,712,957)	(751,540)
Net amortization of net deferred loan costs/fees and premiums	984	2,152
Depreciation and amortization of premises and equipment	2,997	3,296
Change in mortgage servicing rights fair value	5,691	6,866
Mortgage and consumer servicing rights capitalized	(8,700)	(716)
Accretion of fair value adjustment on loans and deposits, net	(2,848)	(1,800)
Amortization of other intangible assets	1,341	1,897
Amortization of subordinated debt issuance costs	95	76
Gain on sale and call of securities, net	(2,533)	(1,344)
Net gains on mortgage loan sales, including fair value adjustments	(82,741)	(25,368)
Bank-owned life insurance income	(1,665)	(762)
Income on retirement plan annuities	(308)	(300)
Disposal of asset held for sale	8,536
Net loss on disposal of premises and equipment	101
Net (gain) loss on sale and write-down of other real estate owned and repossessed assets	57	(94)
ESOP expense	1,534	1,453
Share-based compensation expense	3,143	3,668
Net change in:
Change in other assets	(39,116)	(21,260)
Change in other liabilities	29,187	1,492
Net cash used by operating activities	(25,554)	(47,737)
Activity in securities available for sale:
Maturities, prepayments and calls	69,870	38,786
Purchases	(153,747)	(55,369)
Sales	67,586	28,391
Activity in securities held to maturity:
Maturities, prepayment and calls	432	17,525
Sales	4,759
Net redemption of FHLB stock	5,490	11,503
Participation-in loan purchases	(21,994)	(28,931)
Loan originations, net of principal payments	(322,973)	(100,226)
Proceeds from sale of other real estate owned and repossessed assets	855	2,145
Additions to property and equipment	(4,546)	(3,248)
Cash received in MHC merger		99
Net cash used by investing activities	(354,268)	(89,325)
Cash flows from financing activities:
Net increase in deposits	422,436	238,708
Net change in short-term borrowed funds	(88,000)	(230,000)
Proceeds from other borrowed funds and subordinated debt	40,000	21,220
Repayment of other borrowed funds	(70,026)	(40,016)
Net change in mortgagors' escrow accounts	1,926	1,700
Purchase of shares by the ESOP		(24,830)
Treasury stock purchased	(612)	(721)
Net proceeds from sale of common stock		304,111
Net cash provided by financing activities	305,724	270,172
Net change in cash and cash equivalents	(74,098)	133,110
Cash and cash equivalents at beginning of year	211,616	105,521
Cash and cash equivalents at end of year	137,518	238,631
Supplemental cash flow information:
Interest paid on deposits	19,282	27,654
Interest paid on borrowed funds	5,146	7,531
Income taxes paid, net	13,040	2,341
Transfer of loans to other real estate owned and repossessed assets	1,093	$ 1,680
Transfer of securities held to maturity to available for sale, fair value	22,051
Dividends declared	$ 3,244

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2020
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, 2019 and 2018 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, HarborOne Bank (the “Bank”); and the Bank’s wholly-owned subsidiaries, which consist of HarborOne Mortgage, LLC (“HarborOne Mortgage”), a passive investment corporation, and two security corporations. The passive investment corporation maintains and manages certain assets of the Bank. The security corporations were established for the purpose of buying, holding and selling securities on their own behalf. All significant intercompany balances and transactions have been eliminated in consolidation. Recent Events ● Net interest income could be reduced. In accordance with regulatory guidance, the Company is actively working with borrowers impacted by the COVID-19 pandemic to defer payments. While interest will continue to be recognized in accordance with GAAP, should eventual credit losses on these deferments emerge, interest income would be negatively impacted. As of September 30, 2020, the Bank had 99 active payment deferrals on loans with a total principal balance of $100.0 million, primarily commercial real estate loans. Loans with a total principal balance of $253.3 million were out of the deferral period and paying the loan as agreed and loans with a total principal balance of $5.8 million were out of the deferral period and delinquent more than 30 days. ● The provision for loan losses could increase. Continued uncertainty regarding the severity and duration of the COVID-19 pandemic and related economic effects will continue to affect the accounting for loan losses. It also is possible that asset quality could worsen, and loan charge-offs increase. The Company participated in the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) providing loans to small businesses negatively impacted by the COVID-19 pandemic. PPP loans are fully guaranteed by the U.S. government. ● Noninterest income could be reduced. Uncertainty regarding the severity and duration of the COVID-19 pandemic could cause further volatility in the financial markets. The COVID-19 pandemic and the measures taken to control its spread may disrupt the mortgage loan origination process. Mortgage banking revenues are dependent on mortgage origination volume and are sensitive to interest rates and the condition of housing markets. ● Valuation and fair value measurement challenges may occur. Management performed an interim impairment assessment on goodwill as a result of changes in the macroeconomic environment resulting from the COVID-19 pandemic. The results of the interim impairment assessment indicated that the remaining fair value exceeded the carrying value for both reporting units. The COVID-19 pandemic could cause further and sustained decline in the Company’s stock price or the occurrence of additional valuation triggering events that could result in an impairment charge to earnings. Conversion and Reorganization Depositors Insurance Fund and Share Insurance Fund Nature of Operations The Company provides a variety of financial services to individuals and businesses through its 26 full-service branches in Massachusetts and Rhode Island, 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, New Jersey and Florida and originates loans 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 based upon the level of estimated probable losses in the current loan portfolio. Loan losses are charged against the allowance when management believes the collectability of a loan balance is doubtful. 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, specific 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 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 the 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 – Commercial real estate loans 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 and industrial – Commercial and industrial loans 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 – Consumer loans are generally secured by automobiles or unsecured, and repayment is dependent on the credit quality of the individual borrower. Specific Reserves The specific reserves relate to loans that are classified as impaired. Residential real estate and commercial 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 specific 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, 2020, 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 March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting These provisions apply to contract modifications that reference LIBOR or another reference rate expected to be discounted because of reference rate reform. Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification would be considered “minor” so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company is currently evaluating the effect that this ASU will have on the Company’s consolidated financial statements. ASU No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), was issued in December 2019 to simplify the accounting for income taxes. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Certain provisions under ASU 2019-12 require prospective application, some require modified retrospective application through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, while other provisions require retrospective application to all periods presented in the consolidated financial statements upon adoption. The adoption of ASU 2019-12 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. 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 adoption of this standard is not expected to have a material effect on the Company’s Consolidated Financial Statements. In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) In February 2016, FASB issued ASU 2016-02, Leases (Topic 842)

SECURITIES

SECURITIES	9 Months Ended
SECURITIES	Sep. 30, 2020
SECURITIES
SECURITIES	2. SECURITIES 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, 2020: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 10,003 $ 134 $ — $ 10,137 U.S. government agency and government-sponsored residential mortgage-backed securities 230,072 3,067 512 232,627 U.S. government-sponsored collateralized mortgage obligations 19,675 465 — 20,140 SBA asset-backed securities 16,458 946 — 17,404 Total securities available for sale $ 276,208 $ 4,612 $ 512 $ 280,308 December 31, 2019: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 14,994 $ 210 $ — $ 15,204 U.S. government agency and government-sponsored residential mortgage-backed securities 163,982 1,456 265 165,173 U.S. government-sponsored collateralized mortgage obligations 26,137 243 7 26,373 SBA asset-backed securities 32,461 286 24 32,723 Total securities available for sale $ 237,574 $ 2,195 $ 296 $ 239,473 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ 12,682 $ 86 $ 6 $ 12,762 U.S. government-sponsored collateralized mortgage obligations 1,433 69 — 1,502 SBA asset-backed securities 5,308 124 — 5,432 Municipal bonds 6,949 282 — 7,231 Total securities held to maturity $ 26,372 $ 561 $ 6 $ 26,927 In February 2020, with the intention to reduce credit risk in the investment portfolio and to support the Bank’s credit risk policy, the Bank executed the sale of five held-to-maturity investments. The securities had a total amortized cost of $4.5 million and a $1.3 million gain on sale was recorded during the three months ended March 31, 2020. As a result, the remaining held to maturity securities, with an amortized cost of $21.5 million and an unrealized gain of approximately $522,000, were transferred to the available for sale category at a fair value of $22.1 million. Twenty-six mortgage-backed securities with a combined fair value of $48.9 million are pledged as collateral for interest rate swap agreements as of September 30, 2020 (see Note 10). Seven mortgage-backed securities with a combined fair value of $15.7 million were pledged as collateral for interest rate swap agreements as of December 31, 2019. The amortized cost and fair value of debt securities by contractual maturity at September 30, 2020 is as follows: Available for Sale Amortized Fair Cost Value (in thousands) After 1 year through 5 years $ 5,000 $ 5,012 After 5 years through 10 years 5,003 5,125 Over 10 years — — 10,003 10,137 U.S. government agency and government-sponsored residential mortgage-backed securities 230,072 232,627 U.S. government-sponsored collateralized mortgage obligations 19,675 20,140 SBA asset-backed securities 16,458 17,404 Total $ 276,208 $ 280,308 SBA asset-backed securities are U.S. government-sponsored residential mortgage-backed securities, collateralized mortgage obligations and securities whose underlying assets are loans from the SBA and have stated maturities of 2 to 30 years ; however, it is expected that such securities will have shorter actual lives due to prepayments. U.S. government and government-sponsored enterprise obligations are callable at the discretion of the issuer. U.S. government and government-sponsored enterprise obligations with a total fair value of $10.1 million have final maturities ranging from 3 years to 8 years and call features ranging from 1 month to 1 year . 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, 2020 2019 2020 2019 (in thousands) Sales Proceeds $ — $ — $ 72,333 $ 28,391 Gross gains — — 2,521 1,267 Gross losses — — — — Calls Proceeds $ 2,000 $ 11,775 $ 8,635 $ 20,145 Gross gains — 77 12 77 Gross losses — — — — Information pertaining to securities with gross unrealized losses at September 30, 2020 and December 31, 2019 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, 2020: Securities available for sale U.S. government agency and government-sponsored residential mortgage-backed securities $ 493 $ 81,377 $ 19 $ 3,721 December 31, 2019: Securities available for sale U.S. government agency and government-sponsored residential mortgage-backed securities $ 147 $ 47,343 $ 118 $ 7,986 U.S. government-sponsored collateralized mortgage obligations 1 884 6 795 SBA asset-backed securities 24 3,964 — — $ 172 $ 52,191 $ 124 $ 8,781 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ — $ — $ 6 $ 2,538 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, 2020, 20 securities with an amortized cost of $85.6 million have unrealized losses with aggregate depreciation of 0.60% 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, 2020.

LOANS HELD FOR SALE

LOANS HELD FOR SALE	9 Months Ended
LOANS HELD FOR SALE	Sep. 30, 2020
LOANS HELD FOR SALE
LOANS HELD FOR SALE	3. LOANS HELD FOR SALE 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, 2020 2019 (in thousands) Loans held for sale, fair value $ 190,373 $ 110,552 Loans held for sale, contractual principal outstanding 181,746 107,472 Fair value less unpaid principal balance $ 8,627 $ 3,080 The Company has elected the fair value option for mortgage loans held for sale to better match changes in fair value of the loans with changes in the fair value of the forward sale commitment contracts used to economically hedge them. Changes in fair value of mortgage loans held for sale accounted for under the fair value option election amounted to an increase of $5.5 million in the nine months ended September 30, 2020 to $8.6 million, compared to an increase of $1.3 million in the nine months ended September 30, 2019. These amounts are offset in earnings by the changes in fair value of forward sale commitments. The changes in fair value are reported as a component of gain on sale of mortgage loans in the Unaudited Consolidated Statements of Income. At September 30, 2020 and December 31, 2019, there were no loans held for sale that were greater than 90 days past due.

LOANS

LOANS	9 Months Ended
LOANS	Sep. 30, 2020
LOANS
LOANS	4. LOANS A summary of the balances of loans follows: September 30, December 31, 2020 2019 (in thousands) Residential real estate: One- to four-family $ 954,198 $ 937,305 Second mortgages and equity lines of credit 150,315 155,716 Residential real estate construction 26,422 14,055 1,130,935 1,107,076 Commercial: Commercial real estate 1,380,071 1,168,412 Commercial construction 211,953 153,907 Commercial and industrial 480,129 306,282 Total commercial loans 2,072,153 1,628,601 Consumer loans: Auto 303,598 424,592 Personal 9,145 11,289 Total consumer loans 312,743 435,881 Total loans 3,515,831 3,171,558 Allowance for loan losses (49,223) (24,060) Loans, net $ 3,466,608 $ 3,147,498 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, 2020 and December 31, 2019, the Company was servicing loans for participants aggregating $260.5 million and $195.2 million, respectively. Acquired Loans The loans purchased from Coastway Bancorp, Inc. included $5.4 million in purchased credit impaired (“PCI”) loans. PCI loans were primarily residential real estate loans. The following table provides certain information pertaining to PCI loans: September 30, December 31, 2020 2019 (in thousands) Outstanding balance $ 4,354 $ 4,609 Carrying amount $ 4,133 $ 4,378 The following table summarizes activity in the accretable yield for PCI loans: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Balance at beginning of period $ 145 $ 169 $ 149 $ 185 Additions — — — — Accretion (3) (5) (7) (7) Reclassification from nonaccretable difference — — — (14) Balance at end of period $ 142 $ 164 $ 142 $ 164 The following is the activity in the allowance for loan losses for the three and nine months ended September 30, 2020 and 2019: Residential Commercial Commercial Commercial Real Estate Real Estate Construction and Industrial Consumer Unallocated Total (in thousands) 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 Balance at June 30, 2020 $ 5,857 $ 18,389 $ 3,215 $ 3,562 $ 2,204 $ 2,880 $ 36,107 Provision (credit) for loan losses 1,721 7,771 962 1,617 643 740 13,454 Charge-offs — (62) — (213) (140) — (415) Recoveries 22 — — — 55 — 77 Balance at September 30, 2020 $ 7,600 $ 26,098 $ 4,177 $ 4,966 $ 2,762 $ 3,620 $ 49,223 Residential Commercial Commercial Commercial Real Estate Real Estate Construction and Industrial Consumer Unallocated Total (in thousands) 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 Balance at December 31, 2019 $ 3,178 $ 12,875 $ 2,526 $ 2,977 $ 1,010 $ 1,494 $ 24,060 Provision (credit) for loan losses 4,270 14,458 1,651 2,560 2,142 2,126 27,207 Charge-offs (52) (1,236) — (790) (519) — (2,597) Recoveries 204 1 — 219 129 — 553 Balance at September 30, 2020 $ 7,600 $ 26,098 $ 4,177 $ 4,966 $ 2,762 $ 3,620 $ 49,223 Allocation of the allowance to loan segments at September 30, 2020 and December 31, 2019 follows: Residential Commercial Commercial Commercial Real Estate Real Estate Construction and Industrial Consumer Unallocated Total (in thousands) September 30, 2020: Loans: Impaired loans $ 28,061 $ 4,943 $ 10,971 $ 10,089 $ — $ 54,064 Non-impaired loans 1,102,874 1,375,128 200,982 470,040 312,743 3,461,767 Total loans $ 1,130,935 $ 1,380,071 $ 211,953 $ 480,129 $ 312,743 $ 3,515,831 Allowance for loan losses: Impaired loans $ 950 $ — $ 251 $ 611 $ — $ — $ 1,812 Non-impaired loans 6,650 26,098 3,926 4,355 2,762 3,620 47,411 Total allowance for loan losses $ 7,600 $ 26,098 $ 4,177 $ 4,966 $ 2,762 $ 3,620 $ 49,223 December 31, 2019: Loans: Impaired loans $ 27,275 $ 530 $ 11,244 $ 5,831 $ — $ 44,880 Non-impaired loans 1,079,801 1,167,882 142,663 300,451 435,881 3,126,678 Total loans $ 1,107,076 $ 1,168,412 $ 153,907 $ 306,282 $ 435,881 $ 3,171,558 Allowance for loan losses: Impaired loans $ 985 $ — $ — $ 176 $ — $ — $ 1,161 Non-impaired loans 2,193 12,875 2,526 2,801 1,010 1,494 22,899 Total allowance for loan losses $ 3,178 $ 12,875 $ 2,526 $ 2,977 $ 1,010 $ 1,494 $ 24,060 The following is a summary of past due and non-accrual loans at September 30, 2020 and December 31, 2019: 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, 2020 Residential real estate: One- to four-family $ 595 $ 2,114 $ 4,697 $ 7,406 $ 11,925 Second mortgages and equity lines of credit 660 24 297 981 951 Commercial real estate — 3,183 4,943 8,126 4,943 Commercial construction — — 10,939 10,939 10,939 Commercial and industrial 1,725 4,643 1,564 7,932 10,078 Consumer: Auto 819 380 923 2,122 1,150 Personal 31 49 2 82 41 Total $ 3,830 $ 10,393 $ 23,365 $ 37,588 $ 40,027 December 31, 2019 Residential real estate: One- to four-family $ 9,364 $ 5,622 $ 5,668 $ 20,654 $ 10,610 Second mortgages and equity lines of credit 418 77 760 1,255 1,561 Commercial real estate 261 4,730 191 5,182 530 Commercial construction — — 1,960 1,960 11,244 Commercial and industrial 2,000 722 3,133 5,855 5,831 Consumer: Auto 3,180 456 457 4,093 529 Personal 69 16 13 98 16 Total $ 15,292 $ 11,623 $ 12,182 $ 39,097 $ 30,321 At September 30, 2020 and December 31, 2019, there were no loans past due 90 days or more and still accruing. The following information pertains to impaired loans: September 30, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (in thousands) Impaired loans without a specific reserve: Residential real estate $ 14,101 $ 15,322 $ — $ 11,610 $ 12,140 $ — Commercial real estate 4,943 6,194 — 530 530 — Commercial construction — — — 11,244 11,244 — Commercial and industrial 4,019 5,999 — 5,505 6,901 — Total 23,063 27,515 — 28,889 30,815 — Impaired loans with a specific reserve: Residential real estate 13,960 14,308 950 15,665 16,218 985 Commercial construction 10,971 11,244 251 — — — Commercial and industrial 6,070 6,287 611 326 326 176 Total 31,001 31,839 1,812 15,991 16,544 1,161 Total impaired loans $ 54,064 $ 59,354 $ 1,812 $ 44,880 $ 47,359 $ 1,161 Three Months Ended September 30, 2020 2019 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 real estate $ 26,542 $ 272 $ 270 $ 29,375 $ 451 $ 367 Commercial real estate 4,287 — — — — — Commercial construction 10,971 — — 5,622 — — Commercial and industrial 10,334 9 9 5,467 21 21 Total $ 52,134 $ 281 $ 279 $ 40,464 $ 472 $ 388 Nine Months Ended September 30, 2020 2019 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 real estate $ 26,454 $ 847 $ 788 $ 30,316 $ 1,399 $ 1,125 Commercial real estate 3,202 1 1 671 — — Commercial construction 11,039 — — 3,748 — — Commercial and industrial 7,863 16 16 5,497 44 44 Total $ 48,558 $ 864 $ 805 $ 40,232 $ 1,443 $ 1,169 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, 2020 and 2019, 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, 2020 and 2019. The recorded investment in TDRs was $17.0 million and $20.0 million at September 30, 2020 and December 31, 2019, respectively. Commercial TDRs totaled $2.5 million and $3.0 million at September 30, 2020 and December 31, 2019, respectively. The remainder of the TDRs outstanding at the end of these periods were residential loans. Non-accrual TDRs totaled $3.9 million and $5.0 million at September 30, 2020 and December 31, 2019, respectively. Of these loans, $2.5 million and $3.0 million were non-accrual commercial TDRs at September 30, 2020 and December 31, 2019, 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, 2020 and 2019, 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, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Commercial Commercial Commercial Commercial Commercial Commercial Real Estate Construction and Industrial Real Estate Construction and Industrial (in thousands) Loans rated 1 - 6 $ 1,352,794 $ 201,014 $ 466,254 $ 1,163,343 $ 127,962 $ 294,507 Loans rated 7 23,646 — 3,519 4,539 14,701 6,117 Loans rated 8 524 10,939 8,342 530 11,244 3,223 Loans rated 9 3,107 — 2,014 — — 2,435 Loans rated 10 — — — — — — $ 1,380,071 $ 211,953 $ 480,129 $ 1,168,412 $ 153,907 $ 306,282

MORTGAGE LOAN SERVICING

MORTGAGE LOAN SERVICING	9 Months Ended
MORTGAGE LOAN SERVICING	Sep. 30, 2020
MORTGAGE LOAN SERVICING
MORTGAGE LOAN SERVICING	5. MORTGAGE LOAN SERVICING 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 $2.65 billion and $1.83 billion as of September 30, 2020 and December 31, 2019, 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 September 30, December 31, 2020 2019 Prepayment speed 15.90 % 12.43 % Discount rate 9.26 9.34 Default rate 2.51 2.61 The following summarizes changes to MSRs for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 16,127 $ 18,156 $ 17,150 $ 22,217 Additions 4,225 385 8,700 716 Changes in fair value due to: Reductions from loans paid off during the period (1,083) (585) (2,773) (1,363) Changes in valuation inputs or assumptions 890 (1,889) (2,918) (5,503) Balance, end of period $ 20,159 $ 16,067 $ 20,159 $ 16,067 Contractually specified servicing fees included in other mortgage banking income amounted to $1.6 million and $4.2 million for the three and nine months ended September 30, 2020, respectively, and $1.3 million and $4.1 million for the three and nine months ended September 30, 2019, respectively.

GOODWILL

GOODWILL	9 Months Ended
GOODWILL	Sep. 30, 2020
GOODWILL
GOODWILL	6. GOODWILL As of September 30, 2020, the Company had $69.8 million in goodwill, of which $59.0 million was allocated to the Bank reporting unit and $10.8 million was allocated to the HarborOne Mortgage reporting unit. The Company typically performs its goodwill impairment test during the fourth quarter of the year, unless certain indicators suggest earlier testing to be warranted. The Company determined that an interim impairment test was warranted due to the operational disruption and uncertainty associated with the COVID-19 pandemic. Accordingly, the Company performed impairment tests as of June 30, 2020 and determined that there was no impairment to the goodwill of either reporting unit, as the fair value of each reporting unit was in excess of its carrying value. Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company also considered the impact of the COVID-19 pandemic as it pertains to these intangible assets, and determined that there was no indication of impairment related to other intangible assets as of June 30, 2020. The Company determined that there was no triggering event that warranted an interim impairment test at September 30, 2020.

DEPOSITS

DEPOSITS	9 Months Ended
DEPOSITS	Sep. 30, 2020
DEPOSITS
DEPOSITS	7. DEPOSITS A summary of deposit balances, by type, is as follows: September 30, December 31, 2020 2019 (in thousands) NOW and demand deposit accounts $ 852,356 $ 572,280 Regular savings and club accounts 912,017 626,685 Money market deposit accounts 815,644 856,830 Total non-certificate accounts 2,580,017 2,055,795 Term certificate accounts greater than $250,000 142,266 169,595 Term certificate accounts less than or equal to $250,000 526,614 636,343 Brokered deposits 116,991 81,140 Total certificate accounts 785,871 887,078 Total deposits $ 3,365,888 $ 2,942,873 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, 2020 and December 31, 2019, total reciprocal deposits were $107.8 million and $277.9 million, respectively, consisting primarily of money market accounts. A summary of certificate accounts by maturity at September 30, 2020 is as follows: Weighted Average Amount Rate (dollars in thousands) Within 1 year $ 720,786 1.25 % Over 1 year to 2 years 45,648 1.78 Over 2 years to 3 years 13,174 1.96 Over 3 years to 4 years 5,737 1.16 Over 4 years to 5 years 1,326 0.97 Total certificate deposits 786,671 1.29 % Less unaccreted acquisition discount (800) Total certificate deposits, net $ 785,871

BORROWED FUNDS

BORROWED FUNDS	9 Months Ended
BORROWED FUNDS	Sep. 30, 2020
BORROWED FUNDS
BORROWED FUNDS	8. Borrowed funds at September 30, 2020 and December 31, 2019 consist of Federal Home Loan Bank (“FHLB”) advances. Short-term advances were $95.0 million with a weighted average rate of 0.43% at September 30, 2020. Short-term advances were $183.0 million with a weighted average rate of 1.80% at December 31, 2019. Long-term advances are summarized by maturity date below. September 30, 2020 December 31, 2019 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: 2020 $ 27,000 $ 107,000 3.01 % $ 87,000 137,000 2.25 % 2021 41,750 21,750 2.47 41,750 21,750 2.47 2022 — — — 10,000 — 1.73 2023 20,191 191 3.48 20,195 195 2.43 2024 10,000 10,000 1.68 10,000 10,000 1.68 2025 and thereafter 42,165 2,165 1.34 2,187 2,187 1.10 $ 141,106 $ 141,106 2.32 % $ 171,132 $ 171,132 2.16 % * Includes an amortizing advance requiring monthly principal and interest payments. (1) (2) The FHLB advances are secured by a blanket security agreement which requires the Bank to maintain certain qualifying assets as collateral, principally residential mortgage loans and certain multi-family and commercial real estate loans held in the Bank’s portfolio. The carrying value of the loans pledged as collateral for these borrowings totaled $1.3 billion at September 30, 2020 and $1.06 billion at December 31, 2019. As of September 30, 2020, the Company had $660.7 million of available borrowing capacity with the FHLB. The Company also has additional borrowing capacity under a $25.0 million unsecured federal funds line with a correspondent bank and a secured line of credit with the Federal Reserve Bank of Boston secured by 59% of the carrying value of indirect auto and commercial loans with principal balances amounting to $74.9 million and $46.9 million at September 30, 2020 and December 31, 2019, respectively. No amounts were outstanding under either line at September 30, 2020 or December 31, 2019. As a participating lender in the PPP, the Company also has access to additional borrowing capacity through the Federal Reserve’s Paycheck Protection Program Liquidity Facility. Only loans issued under the PPP may be pledged as collateral.

OTHER COMMITMENTS AND CONTINGEN

OTHER COMMITMENTS AND CONTINGENCIES	9 Months Ended
OTHER COMMITMENTS AND CONTINGENCIES	Sep. 30, 2020
OTHER COMMITMENTS AND CONTINGENCIES
OTHER COMMITMENTS AND CONTINGENCIES	9. OTHER COMMITMENTS AND CONTINGENCIES 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, 2020 and December 31, 2019. The contract amounts represent credit risk. September 30, December 31, 2020 2019 (in thousands) Commitments to grant residential real estate loans-HarborOne Mortgage $ 623,593 $ 24,752 Commitments to grant other loans 103,213 74,114 Unadvanced funds on home equity lines of credit 173,775 157,867 Unadvanced funds on revolving lines of credit 167,971 147,047 Unadvanced funds on construction loans 131,797 112,158 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
DERIVATIVES	Sep. 30, 2020
DERIVATIVES
DERIVATIVES	10. DERIVATIVES The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally to manage the Company’s interest rate risk. Additionally , the Company enters into interest rate derivatives to accommodate the business requirements of its customers. All derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of a derivative instrument depends upon whether or not it qualifies as a hedge for accounting purposes, and further, by the type of hedging relationship. Interest Rate Swaps Designated as a Cashflow Hedge As part of its interest rate risk management strategy, the Company utilizes interest rate swap agreements to help manage its interest rate risk positions. The notional amount of the interest rate swaps do not represent the amount exchanged by the parties. The exchange of cash flows is determined by reference to the notional amounts and the other terms of the interest rate swap agreements. The changes in fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income and subsequently reclassified to earnings when gains or losses are realized. In the second quarter the Company executed an interest swap agreement designated as a cash flow hedge. As of September 30, 2020, the Company had one interest rate swap agreement with a notional amount of $100.0 million that was designated as a cash flow hedge of certain short-term debt. The interest rate swap agreement has an average maturity of 4.5 years, the current weighted average fixed rate paid is 0.67% , the weighted average 3-month LIBOR swap receive rate is 0.35% , and the fair value is $1.6 million. The Company expects approximately $462,000 related to the cash flow hedge to be reclassified to interest expense, from other comprehensive income, in the next twelve months. 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 number 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 $48.9 million are pledged to secure the Company’s liability for the offsetting interest rate swaps (see Note 2). The interest rate swap notional amount 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. Although the Company has determined that the majority of the inputs used to value its interest rate swaps and risk participation agreements fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with interest rate contracts and risk participation agreements utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of September 30, 2020 and December 31, 2019, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments a re not significant to the overall valuation of its derivatives. As a result, the Company has classified its derivative valuations in their entirety as Level 2. The following tables presents the outstanding notional balances and fair values of outstanding derivative instruments: Assets Liabilities Balance Balance Notional Sheet Fair Sheet Fair Amount Location Value Location Value (in thousands) September 30, 2020: Derivatives designated as Hedging Instruments Interest rate swaps $ 100,000 — $ — Other liabilities $ 1,648 Derivatives not designated as Hedging Instruments Derivative loan commitments $ 623,593 Other assets $ 15,554 Other liabilities $ 77 Forward loan sale commitments 457,500 Other assets 193 Other liabilities 1,400 Interest rate swaps 869,700 Other assets 44,636 Other liabilities 44,636 Risk participation agreements 132,684 Other assets — Other liabilities — Total $ 60,383 $ 47,761 December 31, 2019: Derivatives designated as Hedging Instruments Interest rate swaps $ — — $ — — $ — Derivatives not designated as Hedging Instruments Derivative loan commitments $ 100,938 Other assets $ 1,385 Other liabilities $ 174 Forward loan sale commitments 88,000 Other assets 26 Other liabilities 158 Interest rate swaps 725,332 Other assets 15,092 Other liabilities 15,092 Risk participation agreements 134,346 Other assets — Other liabilities — Total $ 16,503 $ 15,424 The following table presents the recorded net gains and losses pertaining to the Company’s derivative instruments: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Derivatives designated as hedging instruments Gain (loss) in OCI on derivatives (effective portion), net of tax $ 82 $ — $ (1,187) $ — (Loss) gain reclassified from OCI into interest income or interest expense (effective portion) $ (82) $ — $ 67 $ — Derivatives not designated as hedging instruments Changes in fair value of derivative loan commitments Mortgage banking income $ 4,738 $ 421 $ 14,266 $ 1,435 Changes in fair value of forward loan sale commitments Mortgage banking income 755 782 (1,075) 449 Changes in fair value of interest rate swaps Other income — — — — Total $ 5,493 $ 1,203 $ 13,191 $ 1,884

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
STOCK-BASED COMPENSATION	Sep. 30, 2020
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	11. STOCK-BASED COMPENSATION 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. Shareholders’ approved the HarborOne Bancorp, Inc. 2020 Equity Incentive Plan on September 29, 2020. No awards had been granted under the new plan as of September 30, 2020. 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 $617,000 and $3.1 million for the three and nine months ended September 30, 2020, respectively, and $1.3 million and $3.7 million for the three and nine months ended 2019, respectively. 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, 2020, the Company made no awards of nonqualified options to purchase shares of common stock. A summary of the status of the Company’s stock option grants for the nine months ended September 30, 2020, 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, 2020 2,169,243 $ 9.87 1,196,545 $ 2.66 Granted — — — — Vested — — (609,968) 2.72 Forfeited (20,948) 10.23 (20,948) 2.82 Expired — — — — Balance at September 30, 2020 2,148,295 $ 9.87 7.33 $ — 565,629 $ 2.59 Exercisable at September 30, 2020 1,582,663 $ 10.07 6.96 $ — Unrecognized cost inclusive of directors' awards $ 991,000 Weighted average remaining recognition period (years) 1.37 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, 2020: Restricted Weighted Average Stock Awards Grant Price Non-vested stock awards at January 1, 2020 333,765 $ 10.20 Vested (293,688) 10.22 Granted — — Forfeited (8,679) 10.23 Non-vested stock awards at September 30, 2020 31,398 $ 10.00 Unrecognized cost inclusive of directors' awards $ 256,000 Weighted average remaining recognition period (years) 1.62

MINIMUM REGULATORY CAPITAL REQU

MINIMUM REGULATORY CAPITAL REQUIREMENTS	9 Months Ended
MINIMUM REGULATORY CAPITAL REQUIREMENTS	Sep. 30, 2020
MINIMUM REGULATORY CAPITAL REQUIREMENTS
MINIMUM REGULATORY CAPITAL REQUIREMENTS	12. The Company and Bank are subject to various regulatory capital requirements administered by the Federal Reserve and 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, 2020, 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, 2020 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, 2020 and December 31, 2019 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, 2020 Common equity Tier 1 capital to risk-weighted assets $ 619,098 17.6 % $ 157,971 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 619,098 17.6 210,627 6.0 N/A N/A Total capital to risk-weighted assets 698,045 19.9 280,837 8.0 N/A N/A Tier 1 capital to average assets 619,098 14.5 171,035 4.0 N/A N/A December 31, 2019 Common equity Tier 1 capital to risk-weighted assets $ 590,122 18.7 % $ 142,048 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 590,122 18.7 189,397 6.0 N/A N/A Total capital to risk-weighted assets 649,182 20.6 252,529 8.0 N/A N/A Tier 1 capital to average assets 590,122 15.3 154,659 4.0 N/A N/A HarborOne Bank September 30, 2020 Common equity Tier 1 capital to risk-weighted assets $ 486,565 13.9 % $ 157,958 4.5 % $ 228,162 6.5 % Tier 1 capital to risk-weighted assets 486,565 13.9 210,611 6.0 280,815 8.0 Total capital to risk-weighted assets 530,508 15.1 280,815 8.0 351,018 10.0 Tier 1 capital to average assets 486,565 11.4 170,933 4.0 213,666 5.0 December 31, 2019 Common equity Tier 1 capital to risk-weighted assets $ 453,707 14.4 % $ 142,053 4.5 % $ 205,188 6.5 % Tier 1 capital to risk-weighted assets 453,707 14.4 189,404 6.0 252,539 8.0 Total capital to risk-weighted assets 477,767 15.1 252,539 8.0 315,674 10.0 Tier 1 capital to average assets 453,707 12.2 149,272 4.0 186,591 5.0

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)	9 Months Ended
COMPREHENSIVE INCOME (LOSS)	Sep. 30, 2020
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS)	13. 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, 2020 2019 (in thousands) Cash flow hedge: Net unrealized loss $ (1,648) $ — Related tax effect 461 — Total accumulated other comprehensive loss $ (1,187) $ — Securities available for sale: Net unrealized gain $ 4,100 $ 1,899 Related tax effect (1,137) (419) Total accumulated other comprehensive income $ 2,963 $ 1,480 The following tables present changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Available Cash Available for Sale Flow for Sale Securities Hedge Total Securities (in thousands) Balance at beginning of period $ 4,166 $ (1,269) $ 2,897 $ 1,466 Other comprehensive income (loss) before reclassifications (1,335) 32 (1,303) 609 Amounts reclassified from accumulated other comprehensive income (loss) — 82 82 (77) Net current period other comprehensive income (loss) (1,335) 114 (1,221) 532 Related tax effect 132 (32) 100 (117) Balance at end of period $ 2,963 $ (1,187) $ 1,776 $ 1,881 Nine Months Ended September 30, 2020 2019 Available Cash Available for Sale Flow for Sale Securities Hedge Total Securities (in thousands) Balance at beginning of period $ 1,480 $ — $ 1,480 $ (2,358) Other comprehensive income (loss) before reclassifications 4,212 (1,581) 2,631 6,780 Amounts reclassified to accumulated other comprehensive income for transfer of securities to available for sale 522 — 522 (1,344) Amounts reclassified from accumulated other comprehensive income (loss) (2,533) (67) (2,600) — Net current period other comprehensive income (loss) 2,201 (1,648) 553 5,436 Related tax effect (718) 461 (257) (1,197) Balance at end of period $ 2,963 $ (1,187) $ 1,776 $ 1,881

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	9 Months Ended
FAIR VALUE OF ASSETS AND LIABILITIES	Sep. 30, 2020
FAIR VALUE OF ASSETS AND LIABILITIES
FAIR VALUE OF ASSETS AND LIABILITIES	14. FAIR VALUE OF ASSETS AND LIABILITIES 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 Securities FHLB stock Loans held for sale Loans Retirement plan annuities MSRs Deposits and mortgagors’ escrow accounts Borrowed funds Accrued interest Interest Rate Swap designated as a cashflow hedge- Forward loan sale commitments and derivative loan commitments Interest rate swaps and risk participation agreements 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 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, 2020 Assets Securities available for sale $ — $ 280,308 $ — $ 280,308 Loans held for sale — 190,373 — 190,373 Mortgage servicing rights — 20,159 — 20,159 Derivative loan commitments — — 15,554 15,554 Forward loan sale commitments — — 193 193 Interest rate swaps — 44,636 — 44,636 $ — $ 535,476 $ 15,747 $ 551,223 Liabilities Derivative loan commitments $ — $ — $ 77 $ 77 Forward loan sale commitments — — 1,400 1,400 Interest rate management agreements — 1,648 — 1,648 Interest rate swaps — 44,636 — 44,636 $ — $ 46,284 $ 1,477 $ 47,761 December 31, 2019 Assets Securities available for sale $ — $ 239,473 $ — $ 239,473 Loans held for sale — 110,552 — 110,552 Mortgage servicing rights — 17,150 — 17,150 Derivative loan commitments — — 1,385 1,385 Forward loan sale commitments — — 26 26 Interest rate swaps — 15,092 — 15,092 $ — $ 382,267 $ 1,411 $ 383,678 Liabilities Derivative loan commitments $ — $ — $ 174 $ 174 Forward loan sale commitments — — 158 158 Interest rate swaps — 15,092 — 15,092 $ — $ 15,092 $ 332 $ 15,424 The table below presents, for the three and nine months ended September 30, 2020 and 2019, 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, 2020 2019 2020 2019 (in thousands) Assets: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ 10,844 $ 2,494 $ 1,411 $ 1,261 Total gains included in net income (1) 4,903 468 14,336 1,701 Balance at end of period $ 15,747 $ 2,962 $ 15,747 $ 2,962 Changes in unrealized gains relating to instruments at period end $ 15,747 $ 2,962 $ 15,747 $ 2,962 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Liabilities: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ (2,067) $ (1,182) $ (332) $ (630) Total gains (losses) included in net income (1) 590 736 (1,145) 184 Balance at end of period $ (1,477) $ (446) $ (1,477) $ (446) Changes in unrealized losses relating to instruments at period end $ (1,477) $ (446) $ (1,477) $ (446) (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, 2020 and December 31, 2019. The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets. September 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Asset held for sale $ — $ — $ — $ — $ — $ 8,536 Impaired loans: Residential — — 4,246 — — 2,272 Commercial — — 20,476 — — 1,606 Other real estate owned and repossessed assets — — 898 — — 719 $ — $ — $ 25,620 $ — $ — $ 13,133 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, 2020 and December 31, 2019, respectively. Losses on fully charged off loans are not included in the table. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Impaired loans Residential $ 103 $ 26 $ 369 $ 58 Commercial 644 181 2,654 193 Other real estate owned and repossessed assets 2 21 58 88 $ 749 $ 228 $ 3,081 $ 339 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, 2020 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 137,518 $ 137,518 $ — $ — $ 137,518 Securities available for sale 280,308 — 280,308 — 280,308 Federal Home Loan Bank stock 11,631 N/A N/A N/A N/A Loans held for sale 190,373 — 190,373 — 190,373 Loans, net 3,466,608 — — 3,509,251 3,509,251 Retirement plan annuities 13,641 — — 13,641 13,641 Accrued interest receivable 12,504 — 12,504 — 12,504 Financial liabilities: Deposits 3,365,888 — — 3,369,131 3,369,131 Borrowed funds 236,106 — 239,842 — 239,842 Subordinated debt 34,002 — — 35,291 35,291 Mortgagors' escrow accounts 7,979 — — 7,979 7,979 Accrued interest payable 1,001 — 1,001 — 1,001 Derivative loan commitments: Assets 15,554 — — 15,554 15,554 Liabilities 77 — — 77 77 Interest rate management agreements: Liabilities 1,648 — — — — Interest rate swap agreements: Assets 44,636 — 44,636 — 44,636 Liabilities 44,636 — 44,636 — 44,636 Forward loan sale commitments: Assets 193 — — 193 193 Liabilities 1,400 — — 1,400 1,400 December 31, 2019 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 211,616 $ 211,616 $ — $ — $ 211,616 Securities available for sale 239,473 — 239,473 — 239,473 Securities held to maturity 26,372 — 26,927 — 26,927 Federal Home Loan Bank stock 17,121 N/A N/A N/A N/A Loans held for sale 110,552 — 110,552 — 110,552 Loans, net 3,147,498 — — 3,176,442 3,176,442 Retirement plan annuities 13,333 — — 13,333 13,333 Accrued interest receivable 9,807 — 9,807 — 9,807 Financial liabilities: Deposits 2,942,873 — — 2,943,899 2,943,899 Borrowed funds 354,132 — 354,881 — 354,881 Subordinated debt 33,907 — — 34,619 34,619 Mortgagors' escrow accounts 6,053 — — 6,053 6,053 Accrued interest payable 1,669 — 1,669 — 1,669 Derivative loan commitments: Assets 1,385 — — 1,385 1,385 Liabilities 174 — — 174 174 Interest rate swap agreements: Assets 15,092 — 15,092 — 15,092 Liabilities 15,092 — 15,092 — 15,092 Forward loan sale commitments: Assets 26 — — 26 26 Liabilities 158 — — 158 158

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
EARNINGS PER SHARE	Sep. 30, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	15. EARNINGS PER SHARE (“EPS”) 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, 2020 2019 Net income applicable to common stock (in thousands) $ 11,893 $ 7,113 Average number of common shares outstanding 58,375,742 58,453,259 Less: Average unallocated ESOP shares (3,910,403) (2,814,525) Average number of common shares outstanding used to calculate basic earnings per common share 54,465,339 55,638,734 Common stock equivalents — — Average number of common shares outstanding used to calculate diluted earnings per common share 54,465,339 55,638,734 Earnings per common share: Basic $ 0.22 $ 0.13 Diluted $ 0.22 $ 0.13 Nine Months Ended September 30, 2020 2019 Net income available to common stockholders (in thousands) $ 27,192 $ 13,961 Average number of common shares outstanding 58,403,825 58,461,953 Less: Average unallocated ESOP shares (3,967,735) (1,606,023) Weighted average number of common shares outstanding used to calculate basic earnings per common share 54,436,090 56,855,930 Weighted average number of common shares outstanding used to calculate diluted earnings per common share 54,436,090 56,855,930 Earnings per common share: Basic $ 0.50 $ 0.25 Diluted $ 0.50 $ 0.25 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 2,148,295 and 2,240,307 shares of common stock for the three and nine months ended September 30, 2020 and 2019, respectively, were not considered in computing diluted earnings per share because they were antidilutive.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
REVENUE RECOGNITION	Sep. 30, 2020
REVENUE RECOGNITION
REVENUE RECOGNITION	16. REVENUE RECOGNITION Revenue from contracts with customers in the scope of Accounting Standards Codification (“ASC”) (“Topic 606”) is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations. The Company’s performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements. In certain cases, other parties are involved with providing services to our customers. If the Company is a principal in the transaction (providing services itself or through a third party on its behalf), revenues are reported based on the gross consideration received from the customer and any related expenses are reported gross in noninterest expense. If the Company is an agent in the transaction (referring to another party to provide services), the Company reports its net fee or commission retained as revenue. The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
SEGMENT REPORTING	Sep. 30, 2020
SEGMENT REPORTING
SEGMENT REPORTING	17. SEGMENT REPORTING 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, 2020 and 2019 and for the three and nine months then ended is presented in the tables below. Three Months Ended September 30, 2020 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income (expense) $ 30,599 $ 1,000 $ (430) $ — $ 31,169 Provision for loan losses 13,454 — — — 13,454 Net interest and dividend income (loss), after provision for loan losses 17,145 1,000 (430) — 17,715 Mortgage banking income: Gain on sale of mortgage loans — 34,055 — — 34,055 Intersegment gain (loss) (645) 645 — — — Changes in mortgage servicing rights fair value (354) 161 — — (193) Other 334 3,947 — — 4,281 Total mortgage banking income (loss) (665) 38,808 — — 38,143 Other noninterest income (loss) 6,326 (8) — — 6,318 Total noninterest income 5,661 38,800 — — 44,461 Noninterest expense 26,300 19,156 266 — 45,722 Income (loss) before income taxes (3,494) 20,644 (696) — 16,454 Provision (benefit) for income taxes 571 4,550 (560) — 4,561 Net income (loss) $ (4,065) $ 16,094 $ (136) $ — $ 11,893 Nine Months Ended September 30, 2020 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income (expense) $ 86,248 $ 2,020 $ (952) $ — $ 87,316 Provision for loan losses 27,207 — — — 27,207 Net interest and dividend income (loss), after provision for loan losses 59,041 2,020 (952) — 60,109 Mortgage banking income: Gain on sale of mortgage loans — 77,195 — — 77,195 Intersegment gain (loss) (2,444) 2,444 — — — Changes in mortgage servicing rights fair value (2,014) (3,677) — — (5,691) Other 1,031 9,931 — — 10,962 Total mortgage banking income (loss) (3,427) 85,893 — — 82,466 Other noninterest income (loss) 19,640 (141) — — 19,499 Total noninterest income 16,213 85,752 — — 101,965 Noninterest expense 75,806 48,235 907 — 124,948 Income (loss) before income taxes (552) 39,537 (1,859) — 37,126 Provision (benefit) for income taxes 2,199 8,667 (932) — 9,934 Net income (loss) $ (2,751) $ 30,870 $ (927) $ — $ 27,192 Total assets at period end $ 4,404,842 $ 280,983 $ 729,838 $ (987,344) $ 4,428,319 Goodwill at period end $ 59,042 $ 10,760 $ — $ — $ 69,802 Three Months Ended September 30, 2019 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income $ 27,855 $ 285 $ (155) $ — $ 27,985 Provision for loan losses 889 — — — 889 Net interest and dividend income, after provision for loan losses 26,966 285 (155) — 27,096 Mortgage banking income: Gain on sale of mortgage loans — 11,015 — — 11,015 Intersegment gain (loss) (393) 393 — — — Changes in mortgage servicing rights fair value (591) (1,883) — — (2,474) Other 369 2,595 — — 2,964 Total mortgage banking income (615) 12,120 — — 11,505 Other noninterest income 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: Gain on sale of mortgage loans 1 24,085 — — 24,086 Intersegment gain (loss) (866) 866 — — — Changes in mortgage servicing rights fair value (1,599) (5,267) — — (6,866) Other 1,127 6,315 — — 7,442 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

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2020
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, 2019 and 2018 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, HarborOne Bank (the “Bank”); and the Bank’s wholly-owned subsidiaries, which consist of HarborOne Mortgage, LLC (“HarborOne Mortgage”), a passive investment corporation, and two security corporations. The passive investment corporation maintains and manages certain assets of the Bank. The security corporations were established for the purpose of buying, holding and selling securities on their own behalf. All significant intercompany balances and transactions have been eliminated in consolidation.
Recent Events	Recent Events ● Net interest income could be reduced. In accordance with regulatory guidance, the Company is actively working with borrowers impacted by the COVID-19 pandemic to defer payments. While interest will continue to be recognized in accordance with GAAP, should eventual credit losses on these deferments emerge, interest income would be negatively impacted. As of September 30, 2020, the Bank had 99 active payment deferrals on loans with a total principal balance of $100.0 million, primarily commercial real estate loans. Loans with a total principal balance of $253.3 million were out of the deferral period and paying the loan as agreed and loans with a total principal balance of $5.8 million were out of the deferral period and delinquent more than 30 days. ● The provision for loan losses could increase. Continued uncertainty regarding the severity and duration of the COVID-19 pandemic and related economic effects will continue to affect the accounting for loan losses. It also is possible that asset quality could worsen, and loan charge-offs increase. The Company participated in the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) providing loans to small businesses negatively impacted by the COVID-19 pandemic. PPP loans are fully guaranteed by the U.S. government. ● Noninterest income could be reduced. Uncertainty regarding the severity and duration of the COVID-19 pandemic could cause further volatility in the financial markets. The COVID-19 pandemic and the measures taken to control its spread may disrupt the mortgage loan origination process. Mortgage banking revenues are dependent on mortgage origination volume and are sensitive to interest rates and the condition of housing markets. ● Valuation and fair value measurement challenges may occur. Management performed an interim impairment assessment on goodwill as a result of changes in the macroeconomic environment resulting from the COVID-19 pandemic. The results of the interim impairment assessment indicated that the remaining fair value exceeded the carrying value for both reporting units. The COVID-19 pandemic could cause further and sustained decline in the Company’s stock price or the occurrence of additional valuation triggering events that could result in an impairment charge to earnings.
Conversion and Reorganization	Conversion and Reorganization
Depositors Insurance Fund and Share Insurance Fund	Depositors Insurance Fund and Share Insurance Fund
Nature of Operations	Nature of Operations The Company provides a variety of financial services to individuals and businesses through its 26 full-service branches in Massachusetts and Rhode Island, 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, New Jersey and Florida and originates loans 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 based upon the level of estimated probable losses in the current loan portfolio. Loan losses are charged against the allowance when management believes the collectability of a loan balance is doubtful. 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, specific 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 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 the 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 – Commercial real estate loans 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 and industrial – Commercial and industrial loans 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 – Consumer loans are generally secured by automobiles or unsecured, and repayment is dependent on the credit quality of the individual borrower. Specific Reserves The specific reserves relate to loans that are classified as impaired. Residential real estate and commercial 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 specific 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, 2020, 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 March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting These provisions apply to contract modifications that reference LIBOR or another reference rate expected to be discounted because of reference rate reform. Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification would be considered “minor” so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Company is currently evaluating the effect that this ASU will have on the Company’s consolidated financial statements. ASU No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), was issued in December 2019 to simplify the accounting for income taxes. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Certain provisions under ASU 2019-12 require prospective application, some require modified retrospective application through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, while other provisions require retrospective application to all periods presented in the consolidated financial statements upon adoption. The adoption of ASU 2019-12 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. 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 adoption of this standard is not expected to have a material effect on the Company’s Consolidated Financial Statements. In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) In February 2016, FASB issued ASU 2016-02, Leases (Topic 842)

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
SECURITIES (Tables)	Sep. 30, 2020
SECURITIES
Schedule of securities with gross unrealized gains and losses	Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (in thousands) September 30, 2020: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 10,003 $ 134 $ — $ 10,137 U.S. government agency and government-sponsored residential mortgage-backed securities 230,072 3,067 512 232,627 U.S. government-sponsored collateralized mortgage obligations 19,675 465 — 20,140 SBA asset-backed securities 16,458 946 — 17,404 Total securities available for sale $ 276,208 $ 4,612 $ 512 $ 280,308 December 31, 2019: Securities available for sale U.S. government and government-sponsored enterprise obligations $ 14,994 $ 210 $ — $ 15,204 U.S. government agency and government-sponsored residential mortgage-backed securities 163,982 1,456 265 165,173 U.S. government-sponsored collateralized mortgage obligations 26,137 243 7 26,373 SBA asset-backed securities 32,461 286 24 32,723 Total securities available for sale $ 237,574 $ 2,195 $ 296 $ 239,473 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ 12,682 $ 86 $ 6 $ 12,762 U.S. government-sponsored collateralized mortgage obligations 1,433 69 — 1,502 SBA asset-backed securities 5,308 124 — 5,432 Municipal bonds 6,949 282 — 7,231 Total securities held to maturity $ 26,372 $ 561 $ 6 $ 26,927
Schedule of debt securities by contractual maturity	Available for Sale Amortized Fair Cost Value (in thousands) After 1 year through 5 years $ 5,000 $ 5,012 After 5 years through 10 years 5,003 5,125 Over 10 years — — 10,003 10,137 U.S. government agency and government-sponsored residential mortgage-backed securities 230,072 232,627 U.S. government-sponsored collateralized mortgage obligations 19,675 20,140 SBA asset-backed securities 16,458 17,404 Total $ 276,208 $ 280,308
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, 2020 2019 2020 2019 (in thousands) Sales Proceeds $ — $ — $ 72,333 $ 28,391 Gross gains — — 2,521 1,267 Gross losses — — — — Calls Proceeds $ 2,000 $ 11,775 $ 8,635 $ 20,145 Gross gains — 77 12 77 Gross losses — — — —
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, 2020: Securities available for sale U.S. government agency and government-sponsored residential mortgage-backed securities $ 493 $ 81,377 $ 19 $ 3,721 December 31, 2019: Securities available for sale U.S. government agency and government-sponsored residential mortgage-backed securities $ 147 $ 47,343 $ 118 $ 7,986 U.S. government-sponsored collateralized mortgage obligations 1 884 6 795 SBA asset-backed securities 24 3,964 — — $ 172 $ 52,191 $ 124 $ 8,781 Securities held to maturity U.S. government agency and government-sponsored residential mortgage-backed securities $ — $ — $ 6 $ 2,538

LOANS HELD FOR SALE (Tables)

LOANS HELD FOR SALE (Tables)	9 Months Ended
LOANS HELD FOR SALE (Tables)	Sep. 30, 2020
LOANS HELD FOR SALE
Schedule of fair value and contractual principal balance outstanding of loans held for sale	September 30, December 31, 2020 2019 (in thousands) Loans held for sale, fair value $ 190,373 $ 110,552 Loans held for sale, contractual principal outstanding 181,746 107,472 Fair value less unpaid principal balance $ 8,627 $ 3,080

LOANS (Tables)

LOANS (Tables)	9 Months Ended
LOANS (Tables)	Sep. 30, 2020
Summary of balances of loans	September 30, December 31, 2020 2019 (in thousands) Residential real estate: One- to four-family $ 954,198 $ 937,305 Second mortgages and equity lines of credit 150,315 155,716 Residential real estate construction 26,422 14,055 1,130,935 1,107,076 Commercial: Commercial real estate 1,380,071 1,168,412 Commercial construction 211,953 153,907 Commercial and industrial 480,129 306,282 Total commercial loans 2,072,153 1,628,601 Consumer loans: Auto 303,598 424,592 Personal 9,145 11,289 Total consumer loans 312,743 435,881 Total loans 3,515,831 3,171,558 Allowance for loan losses (49,223) (24,060) Loans, net $ 3,466,608 $ 3,147,498
Schedule of activity in allowance for loan losses and allocation of allowance to loan segments	The following is the activity in the allowance for loan losses for the three and nine months ended September 30, 2020 and 2019: Residential Commercial Commercial Commercial Real Estate Real Estate Construction and Industrial Consumer Unallocated Total (in thousands) 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 Balance at June 30, 2020 $ 5,857 $ 18,389 $ 3,215 $ 3,562 $ 2,204 $ 2,880 $ 36,107 Provision (credit) for loan losses 1,721 7,771 962 1,617 643 740 13,454 Charge-offs — (62) — (213) (140) — (415) Recoveries 22 — — — 55 — 77 Balance at September 30, 2020 $ 7,600 $ 26,098 $ 4,177 $ 4,966 $ 2,762 $ 3,620 $ 49,223 Residential Commercial Commercial Commercial Real Estate Real Estate Construction and Industrial Consumer Unallocated Total (in thousands) 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 Balance at December 31, 2019 $ 3,178 $ 12,875 $ 2,526 $ 2,977 $ 1,010 $ 1,494 $ 24,060 Provision (credit) for loan losses 4,270 14,458 1,651 2,560 2,142 2,126 27,207 Charge-offs (52) (1,236) — (790) (519) — (2,597) Recoveries 204 1 — 219 129 — 553 Balance at September 30, 2020 $ 7,600 $ 26,098 $ 4,177 $ 4,966 $ 2,762 $ 3,620 $ 49,223 Allocation of the allowance to loan segments at September 30, 2020 and December 31, 2019 follows: Residential Commercial Commercial Commercial Real Estate Real Estate Construction and Industrial Consumer Unallocated Total (in thousands) September 30, 2020: Loans: Impaired loans $ 28,061 $ 4,943 $ 10,971 $ 10,089 $ — $ 54,064 Non-impaired loans 1,102,874 1,375,128 200,982 470,040 312,743 3,461,767 Total loans $ 1,130,935 $ 1,380,071 $ 211,953 $ 480,129 $ 312,743 $ 3,515,831 Allowance for loan losses: Impaired loans $ 950 $ — $ 251 $ 611 $ — $ — $ 1,812 Non-impaired loans 6,650 26,098 3,926 4,355 2,762 3,620 47,411 Total allowance for loan losses $ 7,600 $ 26,098 $ 4,177 $ 4,966 $ 2,762 $ 3,620 $ 49,223 December 31, 2019: Loans: Impaired loans $ 27,275 $ 530 $ 11,244 $ 5,831 $ — $ 44,880 Non-impaired loans 1,079,801 1,167,882 142,663 300,451 435,881 3,126,678 Total loans $ 1,107,076 $ 1,168,412 $ 153,907 $ 306,282 $ 435,881 $ 3,171,558 Allowance for loan losses: Impaired loans $ 985 $ — $ — $ 176 $ — $ — $ 1,161 Non-impaired loans 2,193 12,875 2,526 2,801 1,010 1,494 22,899 Total allowance for loan losses $ 3,178 $ 12,875 $ 2,526 $ 2,977 $ 1,010 $ 1,494 $ 24,060
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, 2020 Residential real estate: One- to four-family $ 595 $ 2,114 $ 4,697 $ 7,406 $ 11,925 Second mortgages and equity lines of credit 660 24 297 981 951 Commercial real estate — 3,183 4,943 8,126 4,943 Commercial construction — — 10,939 10,939 10,939 Commercial and industrial 1,725 4,643 1,564 7,932 10,078 Consumer: Auto 819 380 923 2,122 1,150 Personal 31 49 2 82 41 Total $ 3,830 $ 10,393 $ 23,365 $ 37,588 $ 40,027 December 31, 2019 Residential real estate: One- to four-family $ 9,364 $ 5,622 $ 5,668 $ 20,654 $ 10,610 Second mortgages and equity lines of credit 418 77 760 1,255 1,561 Commercial real estate 261 4,730 191 5,182 530 Commercial construction — — 1,960 1,960 11,244 Commercial and industrial 2,000 722 3,133 5,855 5,831 Consumer: Auto 3,180 456 457 4,093 529 Personal 69 16 13 98 16 Total $ 15,292 $ 11,623 $ 12,182 $ 39,097 $ 30,321
Schedule of information pertaining to impaired loans	The following information pertains to impaired loans: September 30, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (in thousands) Impaired loans without a specific reserve: Residential real estate $ 14,101 $ 15,322 $ — $ 11,610 $ 12,140 $ — Commercial real estate 4,943 6,194 — 530 530 — Commercial construction — — — 11,244 11,244 — Commercial and industrial 4,019 5,999 — 5,505 6,901 — Total 23,063 27,515 — 28,889 30,815 — Impaired loans with a specific reserve: Residential real estate 13,960 14,308 950 15,665 16,218 985 Commercial construction 10,971 11,244 251 — — — Commercial and industrial 6,070 6,287 611 326 326 176 Total 31,001 31,839 1,812 15,991 16,544 1,161 Total impaired loans $ 54,064 $ 59,354 $ 1,812 $ 44,880 $ 47,359 $ 1,161 Three Months Ended September 30, 2020 2019 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 real estate $ 26,542 $ 272 $ 270 $ 29,375 $ 451 $ 367 Commercial real estate 4,287 — — — — — Commercial construction 10,971 — — 5,622 — — Commercial and industrial 10,334 9 9 5,467 21 21 Total $ 52,134 $ 281 $ 279 $ 40,464 $ 472 $ 388 Nine Months Ended September 30, 2020 2019 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 real estate $ 26,454 $ 847 $ 788 $ 30,316 $ 1,399 $ 1,125 Commercial real estate 3,202 1 1 671 — — Commercial construction 11,039 — — 3,748 — — Commercial and industrial 7,863 16 16 5,497 44 44 Total $ 48,558 $ 864 $ 805 $ 40,232 $ 1,443 $ 1,169
Schedule of loans by risk rating	September 30, 2020 December 31, 2019 Commercial Commercial Commercial Commercial Commercial Commercial Real Estate Construction and Industrial Real Estate Construction and Industrial (in thousands) Loans rated 1 - 6 $ 1,352,794 $ 201,014 $ 466,254 $ 1,163,343 $ 127,962 $ 294,507 Loans rated 7 23,646 — 3,519 4,539 14,701 6,117 Loans rated 8 524 10,939 8,342 530 11,244 3,223 Loans rated 9 3,107 — 2,014 — — 2,435 Loans rated 10 — — — — — — $ 1,380,071 $ 211,953 $ 480,129 $ 1,168,412 $ 153,907 $ 306,282
PCI
Schedule of information pertaining to impaired loans	September 30, December 31, 2020 2019 (in thousands) Outstanding balance $ 4,354 $ 4,609 Carrying amount $ 4,133 $ 4,378
Summary of activity in accretable yield for purchased credit impaired loans	Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Balance at beginning of period $ 145 $ 169 $ 149 $ 185 Additions — — — — Accretion (3) (5) (7) (7) Reclassification from nonaccretable difference — — — (14) Balance at end of period $ 142 $ 164 $ 142 $ 164

MORTGAGE LOAN SERVICING (Tables

MORTGAGE LOAN SERVICING (Tables)	9 Months Ended
MORTGAGE LOAN SERVICING (Tables)	Sep. 30, 2020
MORTGAGE LOAN SERVICING
Tabular disclosure of assumptions used in the calculation of fair value of MSR	September 30, December 31, 2020 2019 Prepayment speed 15.90 % 12.43 % Discount rate 9.26 9.34 Default rate 2.51 2.61
Schedule of summarized changes to mortgage servicing rights	Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 16,127 $ 18,156 $ 17,150 $ 22,217 Additions 4,225 385 8,700 716 Changes in fair value due to: Reductions from loans paid off during the period (1,083) (585) (2,773) (1,363) Changes in valuation inputs or assumptions 890 (1,889) (2,918) (5,503) Balance, end of period $ 20,159 $ 16,067 $ 20,159 $ 16,067

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
DEPOSITS (Tables)	Sep. 30, 2020
DEPOSITS
Summary of deposit balances, by type	September 30, December 31, 2020 2019 (in thousands) NOW and demand deposit accounts $ 852,356 $ 572,280 Regular savings and club accounts 912,017 626,685 Money market deposit accounts 815,644 856,830 Total non-certificate accounts 2,580,017 2,055,795 Term certificate accounts greater than $250,000 142,266 169,595 Term certificate accounts less than or equal to $250,000 526,614 636,343 Brokered deposits 116,991 81,140 Total certificate accounts 785,871 887,078 Total deposits $ 3,365,888 $ 2,942,873
Summary of certificate accounts by maturity	Weighted Average Amount Rate (dollars in thousands) Within 1 year $ 720,786 1.25 % Over 1 year to 2 years 45,648 1.78 Over 2 years to 3 years 13,174 1.96 Over 3 years to 4 years 5,737 1.16 Over 4 years to 5 years 1,326 0.97 Total certificate deposits 786,671 1.29 % Less unaccreted acquisition discount (800) Total certificate deposits, net $ 785,871

BORROWED FUNDS (Tables)

BORROWED FUNDS (Tables)	9 Months Ended
BORROWED FUNDS (Tables)	Sep. 30, 2020
BORROWED FUNDS
Schedule of borrowed funds by maturity and call date	September 30, 2020 December 31, 2019 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: 2020 $ 27,000 $ 107,000 3.01 % $ 87,000 137,000 2.25 % 2021 41,750 21,750 2.47 41,750 21,750 2.47 2022 — — — 10,000 — 1.73 2023 20,191 191 3.48 20,195 195 2.43 2024 10,000 10,000 1.68 10,000 10,000 1.68 2025 and thereafter 42,165 2,165 1.34 2,187 2,187 1.10 $ 141,106 $ 141,106 2.32 % $ 171,132 $ 171,132 2.16 % * Includes an amortizing advance requiring monthly principal and interest payments. (1) (2)

OTHER COMMITMENTS AND CONTING_2

OTHER COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
OTHER COMMITMENTS AND CONTINGENCIES (Tables)	Sep. 30, 2020
OTHER COMMITMENTS AND CONTINGENCIES
Schedule of financial instruments with off-balance sheet credit risk	September 30, December 31, 2020 2019 (in thousands) Commitments to grant residential real estate loans-HarborOne Mortgage $ 623,593 $ 24,752 Commitments to grant other loans 103,213 74,114 Unadvanced funds on home equity lines of credit 173,775 157,867 Unadvanced funds on revolving lines of credit 167,971 147,047 Unadvanced funds on construction loans 131,797 112,158

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
DERIVATIVES (Tables)	Sep. 30, 2020
DERIVATIVES
Schedule of outstanding notional balances and fair values of outstanding derivative instruments	Assets Liabilities Balance Balance Notional Sheet Fair Sheet Fair Amount Location Value Location Value (in thousands) September 30, 2020: Derivatives designated as Hedging Instruments Interest rate swaps $ 100,000 — $ — Other liabilities $ 1,648 Derivatives not designated as Hedging Instruments Derivative loan commitments $ 623,593 Other assets $ 15,554 Other liabilities $ 77 Forward loan sale commitments 457,500 Other assets 193 Other liabilities 1,400 Interest rate swaps 869,700 Other assets 44,636 Other liabilities 44,636 Risk participation agreements 132,684 Other assets — Other liabilities — Total $ 60,383 $ 47,761 December 31, 2019: Derivatives designated as Hedging Instruments Interest rate swaps $ — — $ — — $ — Derivatives not designated as Hedging Instruments Derivative loan commitments $ 100,938 Other assets $ 1,385 Other liabilities $ 174 Forward loan sale commitments 88,000 Other assets 26 Other liabilities 158 Interest rate swaps 725,332 Other assets 15,092 Other liabilities 15,092 Risk participation agreements 134,346 Other assets — Other liabilities — Total $ 16,503 $ 15,424
Schedule of net gains and losses on derivative instruments	Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Derivatives designated as hedging instruments Gain (loss) in OCI on derivatives (effective portion), net of tax $ 82 $ — $ (1,187) $ — (Loss) gain reclassified from OCI into interest income or interest expense (effective portion) $ (82) $ — $ 67 $ — Derivatives not designated as hedging instruments Changes in fair value of derivative loan commitments Mortgage banking income $ 4,738 $ 421 $ 14,266 $ 1,435 Changes in fair value of forward loan sale commitments Mortgage banking income 755 782 (1,075) 449 Changes in fair value of interest rate swaps Other income — — — — Total $ 5,493 $ 1,203 $ 13,191 $ 1,884

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
STOCK-BASED COMPENSATION (Tables)	Sep. 30, 2020
STOCK-BASED COMPENSATION
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, 2020 2,169,243 $ 9.87 1,196,545 $ 2.66 Granted — — — — Vested — — (609,968) 2.72 Forfeited (20,948) 10.23 (20,948) 2.82 Expired — — — — Balance at September 30, 2020 2,148,295 $ 9.87 7.33 $ — 565,629 $ 2.59 Exercisable at September 30, 2020 1,582,663 $ 10.07 6.96 $ — Unrecognized cost inclusive of directors' awards $ 991,000 Weighted average remaining recognition period (years) 1.37
Schedule of non-vested stock award activity	Restricted Weighted Average Stock Awards Grant Price Non-vested stock awards at January 1, 2020 333,765 $ 10.20 Vested (293,688) 10.22 Granted — — Forfeited (8,679) 10.23 Non-vested stock awards at September 30, 2020 31,398 $ 10.00 Unrecognized cost inclusive of directors' awards $ 256,000 Weighted average remaining recognition period (years) 1.62

MINIMUM REGULATORY CAPITAL RE_2

MINIMUM REGULATORY CAPITAL REQUIREMENTS (Tables)	9 Months Ended
MINIMUM REGULATORY CAPITAL REQUIREMENTS (Tables)	Sep. 30, 2020
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, 2020 Common equity Tier 1 capital to risk-weighted assets $ 619,098 17.6 % $ 157,971 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 619,098 17.6 210,627 6.0 N/A N/A Total capital to risk-weighted assets 698,045 19.9 280,837 8.0 N/A N/A Tier 1 capital to average assets 619,098 14.5 171,035 4.0 N/A N/A December 31, 2019 Common equity Tier 1 capital to risk-weighted assets $ 590,122 18.7 % $ 142,048 4.5 % N/A N/A Tier 1 capital to risk-weighted assets 590,122 18.7 189,397 6.0 N/A N/A Total capital to risk-weighted assets 649,182 20.6 252,529 8.0 N/A N/A Tier 1 capital to average assets 590,122 15.3 154,659 4.0 N/A N/A HarborOne Bank September 30, 2020 Common equity Tier 1 capital to risk-weighted assets $ 486,565 13.9 % $ 157,958 4.5 % $ 228,162 6.5 % Tier 1 capital to risk-weighted assets 486,565 13.9 210,611 6.0 280,815 8.0 Total capital to risk-weighted assets 530,508 15.1 280,815 8.0 351,018 10.0 Tier 1 capital to average assets 486,565 11.4 170,933 4.0 213,666 5.0 December 31, 2019 Common equity Tier 1 capital to risk-weighted assets $ 453,707 14.4 % $ 142,053 4.5 % $ 205,188 6.5 % Tier 1 capital to risk-weighted assets 453,707 14.4 189,404 6.0 252,539 8.0 Total capital to risk-weighted assets 477,767 15.1 252,539 8.0 315,674 10.0 Tier 1 capital to average assets 453,707 12.2 149,272 4.0 186,591 5.0

COMPREHENSIVE INCOME (LOSS) (Ta

COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
COMPREHENSIVE INCOME (LOSS) (Tables)	Sep. 30, 2020
COMPREHENSIVE INCOME (LOSS)
Schedule of components of accumulated other comprehensive income (loss)	September 30, December 31, 2020 2019 (in thousands) Cash flow hedge: Net unrealized loss $ (1,648) $ — Related tax effect 461 — Total accumulated other comprehensive loss $ (1,187) $ — Securities available for sale: Net unrealized gain $ 4,100 $ 1,899 Related tax effect (1,137) (419) Total accumulated other comprehensive income $ 2,963 $ 1,480
Summary of changes in accumulated other comprehensive income (loss)	Three Months Ended September 30, 2020 2019 Available Cash Available for Sale Flow for Sale Securities Hedge Total Securities (in thousands) Balance at beginning of period $ 4,166 $ (1,269) $ 2,897 $ 1,466 Other comprehensive income (loss) before reclassifications (1,335) 32 (1,303) 609 Amounts reclassified from accumulated other comprehensive income (loss) — 82 82 (77) Net current period other comprehensive income (loss) (1,335) 114 (1,221) 532 Related tax effect 132 (32) 100 (117) Balance at end of period $ 2,963 $ (1,187) $ 1,776 $ 1,881 Nine Months Ended September 30, 2020 2019 Available Cash Available for Sale Flow for Sale Securities Hedge Total Securities (in thousands) Balance at beginning of period $ 1,480 $ — $ 1,480 $ (2,358) Other comprehensive income (loss) before reclassifications 4,212 (1,581) 2,631 6,780 Amounts reclassified to accumulated other comprehensive income for transfer of securities to available for sale 522 — 522 (1,344) Amounts reclassified from accumulated other comprehensive income (loss) (2,533) (67) (2,600) — Net current period other comprehensive income (loss) 2,201 (1,648) 553 5,436 Related tax effect (718) 461 (257) (1,197) Balance at end of period $ 2,963 $ (1,187) $ 1,776 $ 1,881

FAIR VALUE OF ASSETS AND LIAB_2

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	9 Months Ended
FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	Sep. 30, 2020
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, 2020 Assets Securities available for sale $ — $ 280,308 $ — $ 280,308 Loans held for sale — 190,373 — 190,373 Mortgage servicing rights — 20,159 — 20,159 Derivative loan commitments — — 15,554 15,554 Forward loan sale commitments — — 193 193 Interest rate swaps — 44,636 — 44,636 $ — $ 535,476 $ 15,747 $ 551,223 Liabilities Derivative loan commitments $ — $ — $ 77 $ 77 Forward loan sale commitments — — 1,400 1,400 Interest rate management agreements — 1,648 — 1,648 Interest rate swaps — 44,636 — 44,636 $ — $ 46,284 $ 1,477 $ 47,761 December 31, 2019 Assets Securities available for sale $ — $ 239,473 $ — $ 239,473 Loans held for sale — 110,552 — 110,552 Mortgage servicing rights — 17,150 — 17,150 Derivative loan commitments — — 1,385 1,385 Forward loan sale commitments — — 26 26 Interest rate swaps — 15,092 — 15,092 $ — $ 382,267 $ 1,411 $ 383,678 Liabilities Derivative loan commitments $ — $ — $ 174 $ 174 Forward loan sale commitments — — 158 158 Interest rate swaps — 15,092 — 15,092 $ — $ 15,092 $ 332 $ 15,424
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, 2020 2019 2020 2019 (in thousands) Assets: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ 10,844 $ 2,494 $ 1,411 $ 1,261 Total gains included in net income (1) 4,903 468 14,336 1,701 Balance at end of period $ 15,747 $ 2,962 $ 15,747 $ 2,962 Changes in unrealized gains relating to instruments at period end $ 15,747 $ 2,962 $ 15,747 $ 2,962
Schedule of changes in Level 3 liabilities measured at fair value on a recurring basis	Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Liabilities: Derivative and Forward Loan Sale Commitments: Balance at beginning of period $ (2,067) $ (1,182) $ (332) $ (630) Total gains (losses) included in net income (1) 590 736 (1,145) 184 Balance at end of period $ (1,477) $ (446) $ (1,477) $ (446) Changes in unrealized losses relating to instruments at period end $ (1,477) $ (446) $ (1,477) $ (446) (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, 2020 December 31, 2019 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Asset held for sale $ — $ — $ — $ — $ — $ 8,536 Impaired loans: Residential — — 4,246 — — 2,272 Commercial — — 20,476 — — 1,606 Other real estate owned and repossessed assets — — 898 — — 719 $ — $ — $ 25,620 $ — $ — $ 13,133 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, 2020 and December 31, 2019, respectively. Losses on fully charged off loans are not included in the table. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Impaired loans Residential $ 103 $ 26 $ 369 $ 58 Commercial 644 181 2,654 193 Other real estate owned and repossessed assets 2 21 58 88 $ 749 $ 228 $ 3,081 $ 339
Schedule of estimated fair values and related carrying amounts of financial instruments	September 30, 2020 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 137,518 $ 137,518 $ — $ — $ 137,518 Securities available for sale 280,308 — 280,308 — 280,308 Federal Home Loan Bank stock 11,631 N/A N/A N/A N/A Loans held for sale 190,373 — 190,373 — 190,373 Loans, net 3,466,608 — — 3,509,251 3,509,251 Retirement plan annuities 13,641 — — 13,641 13,641 Accrued interest receivable 12,504 — 12,504 — 12,504 Financial liabilities: Deposits 3,365,888 — — 3,369,131 3,369,131 Borrowed funds 236,106 — 239,842 — 239,842 Subordinated debt 34,002 — — 35,291 35,291 Mortgagors' escrow accounts 7,979 — — 7,979 7,979 Accrued interest payable 1,001 — 1,001 — 1,001 Derivative loan commitments: Assets 15,554 — — 15,554 15,554 Liabilities 77 — — 77 77 Interest rate management agreements: Liabilities 1,648 — — — — Interest rate swap agreements: Assets 44,636 — 44,636 — 44,636 Liabilities 44,636 — 44,636 — 44,636 Forward loan sale commitments: Assets 193 — — 193 193 Liabilities 1,400 — — 1,400 1,400 December 31, 2019 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (in thousands) Financial assets: Cash and cash equivalents $ 211,616 $ 211,616 $ — $ — $ 211,616 Securities available for sale 239,473 — 239,473 — 239,473 Securities held to maturity 26,372 — 26,927 — 26,927 Federal Home Loan Bank stock 17,121 N/A N/A N/A N/A Loans held for sale 110,552 — 110,552 — 110,552 Loans, net 3,147,498 — — 3,176,442 3,176,442 Retirement plan annuities 13,333 — — 13,333 13,333 Accrued interest receivable 9,807 — 9,807 — 9,807 Financial liabilities: Deposits 2,942,873 — — 2,943,899 2,943,899 Borrowed funds 354,132 — 354,881 — 354,881 Subordinated debt 33,907 — — 34,619 34,619 Mortgagors' escrow accounts 6,053 — — 6,053 6,053 Accrued interest payable 1,669 — 1,669 — 1,669 Derivative loan commitments: Assets 1,385 — — 1,385 1,385 Liabilities 174 — — 174 174 Interest rate swap agreements: Assets 15,092 — 15,092 — 15,092 Liabilities 15,092 — 15,092 — 15,092 Forward loan sale commitments: Assets 26 — — 26 26 Liabilities 158 — — 158 158

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	Sep. 30, 2020
EARNINGS PER SHARE
Schedule of basic and diluted earnings per share	Three Months Ended September 30, 2020 2019 Net income applicable to common stock (in thousands) $ 11,893 $ 7,113 Average number of common shares outstanding 58,375,742 58,453,259 Less: Average unallocated ESOP shares (3,910,403) (2,814,525) Average number of common shares outstanding used to calculate basic earnings per common share 54,465,339 55,638,734 Common stock equivalents — — Average number of common shares outstanding used to calculate diluted earnings per common share 54,465,339 55,638,734 Earnings per common share: Basic $ 0.22 $ 0.13 Diluted $ 0.22 $ 0.13 Nine Months Ended September 30, 2020 2019 Net income available to common stockholders (in thousands) $ 27,192 $ 13,961 Average number of common shares outstanding 58,403,825 58,461,953 Less: Average unallocated ESOP shares (3,967,735) (1,606,023) Weighted average number of common shares outstanding used to calculate basic earnings per common share 54,436,090 56,855,930 Weighted average number of common shares outstanding used to calculate diluted earnings per common share 54,436,090 56,855,930 Earnings per common share: Basic $ 0.50 $ 0.25 Diluted $ 0.50 $ 0.25 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
SEGMENT REPORTING (Tables)	Sep. 30, 2020
SEGMENT REPORTING
Summary of reportable segments	Three Months Ended September 30, 2020 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income (expense) $ 30,599 $ 1,000 $ (430) $ — $ 31,169 Provision for loan losses 13,454 — — — 13,454 Net interest and dividend income (loss), after provision for loan losses 17,145 1,000 (430) — 17,715 Mortgage banking income: Gain on sale of mortgage loans — 34,055 — — 34,055 Intersegment gain (loss) (645) 645 — — — Changes in mortgage servicing rights fair value (354) 161 — — (193) Other 334 3,947 — — 4,281 Total mortgage banking income (loss) (665) 38,808 — — 38,143 Other noninterest income (loss) 6,326 (8) — — 6,318 Total noninterest income 5,661 38,800 — — 44,461 Noninterest expense 26,300 19,156 266 — 45,722 Income (loss) before income taxes (3,494) 20,644 (696) — 16,454 Provision (benefit) for income taxes 571 4,550 (560) — 4,561 Net income (loss) $ (4,065) $ 16,094 $ (136) $ — $ 11,893 Nine Months Ended September 30, 2020 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income (expense) $ 86,248 $ 2,020 $ (952) $ — $ 87,316 Provision for loan losses 27,207 — — — 27,207 Net interest and dividend income (loss), after provision for loan losses 59,041 2,020 (952) — 60,109 Mortgage banking income: Gain on sale of mortgage loans — 77,195 — — 77,195 Intersegment gain (loss) (2,444) 2,444 — — — Changes in mortgage servicing rights fair value (2,014) (3,677) — — (5,691) Other 1,031 9,931 — — 10,962 Total mortgage banking income (loss) (3,427) 85,893 — — 82,466 Other noninterest income (loss) 19,640 (141) — — 19,499 Total noninterest income 16,213 85,752 — — 101,965 Noninterest expense 75,806 48,235 907 — 124,948 Income (loss) before income taxes (552) 39,537 (1,859) — 37,126 Provision (benefit) for income taxes 2,199 8,667 (932) — 9,934 Net income (loss) $ (2,751) $ 30,870 $ (927) $ — $ 27,192 Total assets at period end $ 4,404,842 $ 280,983 $ 729,838 $ (987,344) $ 4,428,319 Goodwill at period end $ 59,042 $ 10,760 $ — $ — $ 69,802 Three Months Ended September 30, 2019 HarborOne HarborOne HarborOne Bank Mortgage Bancorp, Inc. Eliminations Consolidated (in thousands) Net interest and dividend income $ 27,855 $ 285 $ (155) $ — $ 27,985 Provision for loan losses 889 — — — 889 Net interest and dividend income, after provision for loan losses 26,966 285 (155) — 27,096 Mortgage banking income: Gain on sale of mortgage loans — 11,015 — — 11,015 Intersegment gain (loss) (393) 393 — — — Changes in mortgage servicing rights fair value (591) (1,883) — — (2,474) Other 369 2,595 — — 2,964 Total mortgage banking income (615) 12,120 — — 11,505 Other noninterest income 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: Gain on sale of mortgage loans 1 24,085 — — 24,086 Intersegment gain (loss) (866) 866 — — — Changes in mortgage servicing rights fair value (1,599) (5,267) — — (6,866) Other 1,127 6,315 — — 7,442 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

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands	Aug. 14, 2019USD ($)$ / sharesshares	Sep. 30, 2020USD ($)	Sep. 30, 2019	Sep. 30, 2020USD ($)itemOfficeloanstate	Sep. 30, 2019USD ($)	Aug. 13, 2019
Shares issued \| shares	31,036,812
Shares issued (in dollars per share) \| $ / shares	$ 10
Net proceeds from sale of common stock	$ 304,100				$ 304,111
Stock conversion ratio	1.795431	1.795431	1.795431	1.795431	1.795431
Shares issued in exchange \| shares	12,162,763
Number of full-service bank offices \| item				26
LTV 80 to 100 Percent \| Residential
Loan To Value Ratio				80.00%
HarborOne Mortgage
Number of offices \| Office				30
Additional states licensed to lend \| state				4
MHC \| HarborOne Bancorp Inc.
Ownership percentage						53.00%
HarborOne Bank
Number of security corporation subsidiaries \| item				2
Principal amount of loans out of deferral period		$ 253,300		$ 253,300
Principal amount of loans out of deferral period and delinquent more than 30 days		5,800		$ 5,800
HarborOne Bank \| Commercial
Number of payment deferrals \| loan				99
Principal amount of loans impacted by deferral payments		$ 100,000		$ 100,000

SECURITIES - Gross unrealized g

SECURITIES - Gross unrealized gains and losses (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Securities available for sale
Amortized Cost	$ 276,208	$ 237,574
Gross Unrealized Gains	4,612	2,195
Gross Unrealized Losses	512	296
Fair Value	280,308	239,473
Securities held to maturity
Amortized Cost		26,372
Gross Unrealized Gains		561
Gross Unrealized Losses		6
Fair Value		26,927
U.S. government and government-sponsored enterprise obligations
Securities available for sale
Amortized Cost	10,003	14,994
Gross Unrealized Gains	134	210
Fair Value	10,137	15,204
U.S. government agency and government-sponsored residential mortgage-backed securities
Securities available for sale
Amortized Cost	230,072	163,982
Gross Unrealized Gains	3,067	1,456
Gross Unrealized Losses	512	265
Fair Value	232,627	165,173
Securities held to maturity
Amortized Cost		12,682
Gross Unrealized Gains		86
Gross Unrealized Losses		6
Fair Value		12,762
U.S. government-sponsored collateralized mortgage obligations
Securities available for sale
Amortized Cost	19,675	26,137
Gross Unrealized Gains	465	243
Gross Unrealized Losses		7
Fair Value	20,140	26,373
Securities held to maturity
Amortized Cost		1,433
Gross Unrealized Gains		69
Fair Value		1,502
SBA asset-backed securities
Securities available for sale
Amortized Cost	16,458	32,461
Gross Unrealized Gains	946	286
Gross Unrealized Losses		24
Fair Value	$ 17,404	32,723
Securities held to maturity
Amortized Cost		5,308
Gross Unrealized Gains		124
Fair Value		5,432
Municipal bonds
Securities held to maturity
Amortized Cost		6,949
Gross Unrealized Gains		282
Fair Value		$ 7,231

SECURITIES - Contractual maturi

SECURITIES - Contractual maturity (Details)	1 Months Ended	3 Months Ended		9 Months Ended
SECURITIES - Contractual maturity (Details)	Feb. 29, 2020USD ($)security	Sep. 30, 2020USD ($)security	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)security	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)security
Securities
Pledged as collateral		$ 48,900,000		$ 48,900,000
Fair Value						$ 26,927,000
Amortized Cost-Available-for-Sale
After 1 year through 5 years		5,000,000		5,000,000
After 5 years through 10 years		5,003,000		5,003,000
Total for contractual maturity		10,003,000		10,003,000
Amortized Cost		276,208,000		276,208,000		237,574,000
Fair Value-Available-for-Sale
After 1 year through 5 years		5,012,000		5,012,000
After 5 years through 10 years		5,125,000		5,125,000
Total for contractual maturity		10,137,000		10,137,000
Total		280,308,000		280,308,000		239,473,000
Amortized Cost-Held-to-Maturity
Amortized Cost						26,372,000
Gross Unrealized Gains						$ 561,000
Sales
Proceeds				72,333,000	$ 28,391,000
Gross gains				2,521,000	1,267,000
Calls
Proceeds		$ 2,000,000	$ 11,775,000	8,635,000	20,145,000
Gross gains			$ 77,000	$ 12,000	$ 77,000
Mortgage-backed securities
Securities
Number of securities pledged \| security		26		26		7
Pledged as collateral		$ 48,900,000		$ 48,900,000		$ 15,700,000
HTM securities
Securities
Number of securities sold \| security	5
Sold HTM securities
Securities
Realized gain	$ 1,300,000
Amortized Cost-Held-to-Maturity
Amortized Cost	4,500,000
Transferred securities
Securities
Transfer amount	21,500,000
Fair Value-Available-for-Sale
Total	22,100,000
Amortized Cost-Held-to-Maturity
Gross Unrealized Gains	$ 522,000
U.S. government agency and government-sponsored residential mortgage-backed securities
Securities
Fair Value						12,762,000
Amortized Cost-Available-for-Sale
No single maturity date		230,072,000		230,072,000
Amortized Cost		230,072,000		230,072,000		163,982,000
Fair Value-Available-for-Sale
No single maturity date		232,627,000		232,627,000
Total		232,627,000		232,627,000		165,173,000
Amortized Cost-Held-to-Maturity
Amortized Cost						12,682,000
Gross Unrealized Gains						86,000
U.S. government-sponsored collateralized mortgage obligations
Securities
Fair Value						1,502,000
Amortized Cost-Available-for-Sale
No single maturity date		19,675,000		19,675,000
Amortized Cost		19,675,000		19,675,000		26,137,000
Fair Value-Available-for-Sale
No single maturity date		20,140,000		20,140,000
Total		20,140,000		20,140,000		26,373,000
Amortized Cost-Held-to-Maturity
Amortized Cost						1,433,000
Gross Unrealized Gains						69,000
SBA asset-backed securities
Securities
Fair Value						5,432,000
Amortized Cost-Available-for-Sale
No single maturity date		16,458,000		16,458,000
Amortized Cost		16,458,000		16,458,000		32,461,000
Fair Value-Available-for-Sale
No single maturity date		17,404,000		17,404,000
Total		17,404,000		$ 17,404,000		32,723,000
Amortized Cost-Held-to-Maturity
Amortized Cost						5,308,000
Gross Unrealized Gains						124,000
SBA asset-backed securities \| Minimum
Securities
Maturity period				2 years
SBA asset-backed securities \| Maximum
Securities
Maturity period				30 years
Municipal bonds
Securities
Fair Value						7,231,000
Amortized Cost-Held-to-Maturity
Amortized Cost						6,949,000
Gross Unrealized Gains						282,000
U.S. government and government-sponsored enterprise obligations
Amortized Cost-Available-for-Sale
Amortized Cost		10,003,000		$ 10,003,000		14,994,000
Fair Value-Available-for-Sale
Total		$ 10,137,000		$ 10,137,000		$ 15,204,000
U.S. government and government-sponsored enterprise obligations \| Minimum
Securities
Maturity period				3 years
Callable period				1 month
U.S. government and government-sponsored enterprise obligations \| Maximum
Securities
Maturity period				8 years
Callable period				1 year

SECURITIES - Gross unrealized l

SECURITIES - Gross unrealized losses aggregated by category (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)security	Dec. 31, 2019USD ($)
Marketable Securities [Line Items]
Number of debt securities with unrealized loss \| security	20
Amortized cost of securities with unrealized losses	$ 85,600
Aggregate depreciation of securities with unrealized losses (as a percent)	0.60%
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months		$ 172
Twelve Months and Over		124
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months		52,191
Twelve Months and Over		8,781
U.S. government agency and government-sponsored residential mortgage-backed securities
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months	$ 493	147
Twelve Months and Over	19	118
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months	81,377	47,343
Twelve Months and Over	$ 3,721	7,986
Continuous unrealized losses, Gross Unrealized Losses, Held-to-Maturity
Twelve Months and Over		6
Continuous unrealized losses, Fair Value, Held-for-Maturity
Twelve Months and Over		2,538
U.S. government-sponsored collateralized mortgage obligations
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months		1
Twelve Months and Over		6
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months		884
Twelve Months and Over		795
SBA asset-backed securities
Continuous unrealized losses, Gross Unrealized Losses, Available-for-Sale
Less than Twelve Months		24
Continuous unrealized losses, Fair Value, Available-for-Sale
Less Than Twelve Months		$ 3,964

LOANS HELD FOR SALE (Details)

LOANS HELD FOR SALE (Details) - USD ($)	9 Months Ended
LOANS HELD FOR SALE (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Fair value and contractual principal outstanding:
Loans held for sale, fair value	$ 190,373,000		$ 110,552,000
Loans held for sale, contractual principal outstanding	181,746,000		107,472,000
Fair value less unpaid principal balance	8,627,000		3,080,000
Change in fair value of mortgage loans held for sale	5,500,000	$ 1,300,000
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, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Loans
Total loans	$ 3,515,831		$ 3,171,558
Less: Allowance for loan losses	(49,223)	$ (36,107)	(24,060)	$ (23,044)	$ (22,261)	$ (20,655)
Net loans	3,466,608		3,147,498
Residential
Loans
Total loans	1,130,935		1,107,076
Less: Allowance for loan losses	(7,600)	(5,857)	(3,178)	(3,175)	(3,100)	(3,239)
Residential \| 1-4 family
Loans
Total loans	954,198		937,305
Residential \| Second mortgages and equity lines of credit
Loans
Total loans	150,315		155,716
Residential \| Residential real estate construction
Loans
Total loans	26,422		14,055
Commercial
Loans
Total loans	2,072,153		1,628,601
Commercial \| Commercial real estate
Loans
Total loans	1,380,071		1,168,412
Less: Allowance for loan losses	(26,098)	(18,389)	(12,875)	(11,840)	(11,100)	(10,059)
Commercial \| Commercial construction
Loans
Total loans	211,953		153,907
Less: Allowance for loan losses	(4,177)	(3,215)	(2,526)	(2,561)	(2,927)	(2,707)
Commercial \| Commercial and industrial
Loans
Total loans	480,129		306,282
Less: Allowance for loan losses	(4,966)	(3,562)	(2,977)	(2,503)	(2,512)	(2,286)
Consumer loans
Loans
Total loans	312,743		435,881
Less: Allowance for loan losses	(2,762)	$ (2,204)	(1,010)	$ (1,038)	$ (1,063)	$ (1,154)
Consumer loans \| Auto
Loans
Total loans	303,598		424,592
Consumer loans \| Personal
Loans
Total loans	$ 9,145		$ 11,289

LOANS - Loans Sold or Transferr

LOANS - Loans Sold or Transferred (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Commercial real estate
Loans
Unpaid principal balance of loans serviced for others	$ 260.5	$ 195.2

LOANS - Acquired Loans (Details

LOANS - Acquired Loans (Details) - PCI - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Oct. 05, 2018
Loans
Outstanding balance	$ 4,354	$ 4,609
Carrying amount	$ 4,133	$ 4,378
Coastway
Loans
Loans purchased			$ 5,400

LOANS - PCI Loans (Details)

LOANS - PCI Loans (Details) - PCI - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
LOANS - PCI Loans (Details) - PCI - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accretable yield:
Balance at beginning of period	$ 145	$ 169	$ 149	$ 185
Accretion	(3)	(5)	(7)	(7)
Reclassification from nonaccretable difference				(14)
Balance at end of period	$ 142	$ 164	$ 142	$ 164

LOANS - Allowance for Loan Loss

LOANS - Allowance for Loan Losses Activity and Allocation to Loan Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Dec. 31, 2019
Activity in the allowance for loan losses
Balance	$ 36,107	$ 22,261	$ 24,060	$ 20,655
Provision (credit) for loan losses	13,454	889	27,207	3,496
Charge-offs	(415)	(259)	(2,597)	(1,629)
Recoveries	77	153	553	522
Balance	49,223	23,044	49,223	23,044
Allocation of the allowance to loan segments
Total loans					$ 3,515,831	$ 3,171,558
Total allowance for loan losses	36,107	23,044	24,060	20,655	49,223	24,060
Impaired loans
Activity in the allowance for loan losses
Balance			1,161
Balance	1,812		1,812
Allocation of the allowance to loan segments
Total loans					54,064	44,880
Total allowance for loan losses	1,812		1,161		1,812	1,161
Non-impaired loans
Activity in the allowance for loan losses
Balance			22,899
Balance	47,411		47,411
Allocation of the allowance to loan segments
Total loans					3,461,767	3,126,678
Total allowance for loan losses	47,411		22,899		47,411	22,899
Residential
Activity in the allowance for loan losses
Balance	5,857	3,100	3,178	3,239
Provision (credit) for loan losses	1,721	1	4,270	(226)
Charge-offs			(52)	(136)
Recoveries	22	74	204	298
Balance	7,600	3,175	7,600	3,175
Allocation of the allowance to loan segments
Total loans					1,130,935	1,107,076
Total allowance for loan losses	7,600	3,175	3,178	3,239	7,600	3,178
Residential \| Impaired loans
Activity in the allowance for loan losses
Balance			985
Balance	950		950
Allocation of the allowance to loan segments
Total loans					28,061	27,275
Total allowance for loan losses	950		985		950	985
Residential \| Non-impaired loans
Activity in the allowance for loan losses
Balance			2,193
Balance	6,650		6,650
Allocation of the allowance to loan segments
Total loans					1,102,874	1,079,801
Total allowance for loan losses	6,650		2,193		6,650	2,193
Commercial
Allocation of the allowance to loan segments
Total loans					2,072,153	1,628,601
Consumer loans
Activity in the allowance for loan losses
Balance	2,204	1,063	1,010	1,154
Provision (credit) for loan losses	643	113	2,142	341
Charge-offs	(140)	(216)	(519)	(660)
Recoveries	55	78	129	203
Balance	2,762	1,038	2,762	1,038
Allocation of the allowance to loan segments
Total loans					312,743	435,881
Total allowance for loan losses	2,762	1,038	1,010	1,154	2,762	1,010
Consumer loans \| Non-impaired loans
Activity in the allowance for loan losses
Balance			1,010
Balance	2,762		2,762
Allocation of the allowance to loan segments
Total loans					312,743	435,881
Total allowance for loan losses	2,762		1,010		2,762	1,010
Unallocated
Activity in the allowance for loan losses
Balance	2,880	1,559	1,494	1,210
Provision (credit) for loan losses	740	368	2,126	717
Balance	3,620	1,927	3,620	1,927
Allocation of the allowance to loan segments
Total allowance for loan losses	3,620	1,927	1,494	1,210	3,620	1,494
Unallocated \| Non-impaired loans
Activity in the allowance for loan losses
Balance			1,494
Balance	3,620		3,620
Allocation of the allowance to loan segments
Total allowance for loan losses	3,620		1,494		3,620	1,494
Commercial real estate \| Commercial
Activity in the allowance for loan losses
Balance	18,389	11,100	12,875	10,059
Provision (credit) for loan losses	7,771	739	14,458	1,775
Charge-offs	(62)		(1,236)
Recoveries		1	1	6
Balance	26,098	11,840	26,098	11,840
Allocation of the allowance to loan segments
Total loans					1,380,071	1,168,412
Total allowance for loan losses	26,098	11,840	12,875	10,059	26,098	12,875
Commercial real estate \| Commercial \| Impaired loans
Allocation of the allowance to loan segments
Total loans					4,943	530
Commercial real estate \| Commercial \| Non-impaired loans
Activity in the allowance for loan losses
Balance			12,875
Balance	26,098		26,098
Allocation of the allowance to loan segments
Total loans					1,375,128	1,167,882
Total allowance for loan losses	26,098		12,875		26,098	12,875
Commercial construction \| Commercial
Activity in the allowance for loan losses
Balance	3,215	2,927	2,526	2,707
Provision (credit) for loan losses	962	(366)	1,651	(146)
Balance	4,177	2,561	4,177	2,561
Allocation of the allowance to loan segments
Total loans					211,953	153,907
Total allowance for loan losses	4,177	2,561	2,526	2,707	4,177	2,526
Commercial construction \| Commercial \| Impaired loans
Activity in the allowance for loan losses
Balance	251		251
Allocation of the allowance to loan segments
Total loans					10,971	11,244
Total allowance for loan losses	251		251		251
Commercial construction \| Commercial \| Non-impaired loans
Activity in the allowance for loan losses
Balance			2,526
Balance	3,926		3,926
Allocation of the allowance to loan segments
Total loans					200,982	142,663
Total allowance for loan losses	3,926		2,526		3,926	2,526
Commercial and industrial \| Commercial
Activity in the allowance for loan losses
Balance	3,562	2,512	2,977	2,286
Provision (credit) for loan losses	1,617	34	2,560	1,035
Charge-offs	(213)	(43)	(790)	(833)
Recoveries			219	15
Balance	4,966	2,503	4,966	2,503
Allocation of the allowance to loan segments
Total loans					480,129	306,282
Total allowance for loan losses	4,966	$ 2,503	2,977	$ 2,286	4,966	2,977
Commercial and industrial \| Commercial \| Impaired loans
Activity in the allowance for loan losses
Balance			176
Balance	611		611
Allocation of the allowance to loan segments
Total loans					10,089	5,831
Total allowance for loan losses	611		176		611	176
Commercial and industrial \| Commercial \| Non-impaired loans
Activity in the allowance for loan losses
Balance			2,801
Balance	4,355		4,355
Allocation of the allowance to loan segments
Total loans					470,040	300,451
Total allowance for loan losses	$ 4,355		$ 2,801		$ 4,355	$ 2,801

LOANS - Summary of Past Due and

LOANS - Summary of Past Due and Non-Accrual Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Summary of past due and non-accrual loans
Past Due	$ 37,588	$ 39,097
Loans on Non-accrual	40,027	30,321
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	3,830	15,292
60 to 89 Days
Summary of past due and non-accrual loans
Past Due	10,393	11,623
90 Days or More
Summary of past due and non-accrual loans
Past Due	23,365	12,182
Residential \| 1-4 family
Summary of past due and non-accrual loans
Past Due	7,406	20,654
Loans on Non-accrual	11,925	10,610
Residential \| 1-4 family \| 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	595	9,364
Residential \| 1-4 family \| 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	2,114	5,622
Residential \| 1-4 family \| 90 Days or More
Summary of past due and non-accrual loans
Past Due	4,697	5,668
Residential \| Second mortgages and equity lines of credit
Summary of past due and non-accrual loans
Past Due	981	1,255
Loans on Non-accrual	951	1,561
Residential \| Second mortgages and equity lines of credit \| 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	660	418
Residential \| Second mortgages and equity lines of credit \| 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	24	77
Residential \| Second mortgages and equity lines of credit \| 90 Days or More
Summary of past due and non-accrual loans
Past Due	297	760
Commercial \| Commercial real estate
Summary of past due and non-accrual loans
Past Due	8,126	5,182
Loans on Non-accrual	4,943	530
Commercial \| Commercial real estate \| 30 to 59 Days
Summary of past due and non-accrual loans
Past Due		261
Commercial \| Commercial real estate \| 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	3,183	4,730
Commercial \| Commercial real estate \| 90 Days or More
Summary of past due and non-accrual loans
Past Due	4,943	191
Commercial \| Commercial construction
Summary of past due and non-accrual loans
Past Due	10,939	1,960
Loans on Non-accrual	10,939	11,244
Commercial \| Commercial construction \| 90 Days or More
Summary of past due and non-accrual loans
Past Due	10,939	1,960
Commercial \| Commercial and industrial
Summary of past due and non-accrual loans
Past Due	7,932	5,855
Loans on Non-accrual	10,078	5,831
Commercial \| Commercial and industrial \| 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	1,725	2,000
Commercial \| Commercial and industrial \| 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	4,643	722
Commercial \| Commercial and industrial \| 90 Days or More
Summary of past due and non-accrual loans
Past Due	1,564	3,133
Consumer loans \| Auto
Summary of past due and non-accrual loans
Past Due	2,122	4,093
Loans on Non-accrual	1,150	529
Consumer loans \| Auto \| 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	819	3,180
Consumer loans \| Auto \| 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	380	456
Consumer loans \| Auto \| 90 Days or More
Summary of past due and non-accrual loans
Past Due	923	457
Consumer loans \| Personal
Summary of past due and non-accrual loans
Past Due	82	98
Loans on Non-accrual	41	16
Consumer loans \| Personal \| 30 to 59 Days
Summary of past due and non-accrual loans
Past Due	31	69
Consumer loans \| Personal \| 60 to 89 Days
Summary of past due and non-accrual loans
Past Due	49	16
Consumer loans \| Personal \| 90 Days or More
Summary of past due and non-accrual loans
Past Due	$ 2	$ 13

LOANS - Impaired Loans (Details

LOANS - Impaired Loans (Details) - USD ($)	3 Months Ended		9 Months Ended
LOANS - Impaired Loans (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Recorded Investment
Impaired loans without a valuation allowance	$ 23,063,000		$ 23,063,000		$ 28,889,000
Impaired loans with a valuation allowance	31,001,000		31,001,000		15,991,000
Total impaired loans	54,064,000		54,064,000		44,880,000
Unpaid Principal Balance
Impaired loans without a valuation allowance	27,515,000		27,515,000		30,815,000
Impaired loans with a valuation allowance	31,839,000		31,839,000		16,544,000
Total impaired loans	59,354,000		59,354,000		47,359,000
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans	1,812,000		1,812,000		1,161,000
Impaired loans
Average Recorded Investment	52,134,000	$ 40,464,000	48,558,000	$ 40,232,000
Interest Income Recognized	281,000	472,000	864,000	1,443,000
Interest Income Recognized on Cash Basis	279,000	388,000	805,000	1,169,000
Additional funds committed to be advanced in connection with impaired loans	0	0	0	0
Residential
Recorded Investment
Impaired loans without a valuation allowance	14,101,000		14,101,000		11,610,000
Impaired loans with a valuation allowance	13,960,000		13,960,000		15,665,000
Unpaid Principal Balance
Impaired loans without a valuation allowance	15,322,000		15,322,000		12,140,000
Impaired loans with a valuation allowance	14,308,000		14,308,000		16,218,000
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans	950,000		950,000		985,000
Impaired loans
Average Recorded Investment	26,542,000	29,375,000	26,454,000	30,316,000
Interest Income Recognized	272,000	451,000	847,000	1,399,000
Interest Income Recognized on Cash Basis	270,000	367,000	788,000	1,125,000
Commercial real estate \| Commercial
Recorded Investment
Impaired loans without a valuation allowance	4,943,000		4,943,000		530,000
Unpaid Principal Balance
Impaired loans without a valuation allowance	6,194,000		6,194,000		530,000
Impaired loans
Average Recorded Investment	4,287,000		3,202,000	671,000
Interest Income Recognized			1,000
Interest Income Recognized on Cash Basis			1,000
Commercial construction \| Commercial
Recorded Investment
Impaired loans without a valuation allowance					11,244,000
Impaired loans with a valuation allowance	10,971,000		10,971,000
Unpaid Principal Balance
Impaired loans without a valuation allowance					11,244,000
Impaired loans with a valuation allowance	11,244,000		11,244,000
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans	251,000		251,000
Impaired loans
Average Recorded Investment	10,971,000	5,622,000	11,039,000	3,748,000
Commercial and industrial \| Commercial
Recorded Investment
Impaired loans without a valuation allowance	4,019,000		4,019,000		5,505,000
Impaired loans with a valuation allowance	6,070,000		6,070,000		326,000
Unpaid Principal Balance
Impaired loans without a valuation allowance	5,999,000		5,999,000		6,901,000
Impaired loans with a valuation allowance	6,287,000		6,287,000		326,000
Activity in the allowance for loan losses
Allowance for loan losses for impaired loans	611,000		611,000		$ 176,000
Impaired loans
Average Recorded Investment	10,334,000	5,467,000	7,863,000	5,497,000
Interest Income Recognized	9,000	21,000	16,000	44,000
Interest Income Recognized on Cash Basis	$ 9,000	$ 21,000	$ 16,000	$ 44,000

LOANS - Troubled Debt Restructu

LOANS - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)contract	Sep. 30, 2019USD ($)contract	Sep. 30, 2020USD ($)contract	Sep. 30, 2019contract	Dec. 31, 2019USD ($)
Troubled debt restructurings
TDR modifications	$ 0	$ 0
Recorded investment of troubled debt restructurings	17,000		$ 17,000		$ 20,000
Recorded investment of troubled debt restructurings that were nonaccruing	$ 3,900		$ 3,900		5,000
Number of troubled debt restructurings that defaulted \| contract	0	0	0	0
Commercial
Troubled debt restructurings
Recorded investment of troubled debt restructurings	$ 2,500		$ 2,500		3,000
Recorded investment of troubled debt restructurings that were nonaccruing	$ 2,500		$ 2,500		$ 3,000

LOANS - Risk Rating (Details)

LOANS - Risk Rating (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans by risk rating
Total loans	$ 3,515,831	$ 3,171,558
Commercial
Loans by risk rating
Total loans	2,072,153	1,628,601
Commercial real estate \| Commercial
Loans by risk rating
Total loans	1,380,071	1,168,412
Commercial real estate \| Commercial \| Loans rated 1 - 6, pass
Loans by risk rating
Total loans	1,352,794	1,163,343
Commercial real estate \| Commercial \| Loans rated 7, special mention
Loans by risk rating
Total loans	23,646	4,539
Commercial real estate \| Commercial \| Loans rated 8, substandard
Loans by risk rating
Total loans	524	530
Commercial real estate \| Commercial \| Loans rated 9, doubtful
Loans by risk rating
Total loans	3,107
Commercial construction \| Commercial
Loans by risk rating
Total loans	211,953	153,907
Commercial construction \| Commercial \| Loans rated 1 - 6, pass
Loans by risk rating
Total loans	201,014	127,962
Commercial construction \| Commercial \| Loans rated 7, special mention
Loans by risk rating
Total loans		14,701
Commercial construction \| Commercial \| Loans rated 8, substandard
Loans by risk rating
Total loans	10,939	11,244
Commercial and industrial \| Commercial
Loans by risk rating
Total loans	480,129	306,282
Commercial and industrial \| Commercial \| Loans rated 1 - 6, pass
Loans by risk rating
Total loans	466,254	294,507
Commercial and industrial \| Commercial \| Loans rated 7, special mention
Loans by risk rating
Total loans	3,519	6,117
Commercial and industrial \| Commercial \| Loans rated 8, substandard
Loans by risk rating
Total loans	8,342	3,223
Commercial and industrial \| Commercial \| Loans rated 9, doubtful
Loans by risk rating
Total loans	$ 2,014	$ 2,435

MORTGAGE LOAN SERVICING - Key A

MORTGAGE LOAN SERVICING - Key Assumptions (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Unpaid Principal Balance
Unpaid principal balances of mortgage loans serviced	$ 2,650	$ 1,830
Prepayment speed	15.90%	12.43%
Discount rate	9.26%	9.34%
Default rate	2.51%	2.61%

MORTGAGE LOAN SERVICING - Fair

MORTGAGE LOAN SERVICING - Fair value of MSR (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Changes to the fair value of Mortgage Servicing Rights
Mortgage servicing rights, at fair value, beginning of year	$ 16,127	$ 18,156	$ 17,150	$ 22,217
Additions	4,225	385	8,700	716
Changes in fair value due to :
Reductions from loans paid off during the period	(1,083)	(585)	(2,773)	(1,363)
Changes in valuation inputs or assumptions	890	(1,889)	(2,918)	(5,503)
Mortgage servicing rights, at fair value, end of year	20,159	16,067	20,159	16,067
Fees and commissions, mortgage banking and servicing	$ 1,600	$ 1,300	$ 4,200	$ 4,100

GOODWILL (Details)

GOODWILL (Details) - USD ($)	6 Months Ended
GOODWILL (Details) - USD ($)	Jun. 30, 2020	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Goodwill [Line Items]
Goodwill		$ 69,802,000	$ 69,802,000	$ 69,635,000
Goodwill impairment	$ 0
Impairment of intangible assets	$ 0
HarborOne Bank
Goodwill [Line Items]
Goodwill		59,000,000
HarborOne Mortgage
Goodwill [Line Items]
Goodwill		$ 10,800,000

DEPOSITS - Summary of deposits

DEPOSITS - Summary of deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
DEPOSITS
NOW and demand deposit accounts	$ 852,356	$ 572,280
Regular savings and club accounts	912,017	626,685
Money market deposit accounts	815,644	856,830
Total non-certificate accounts	2,580,017	2,055,795
Term certificate accounts greater than $250,000	142,266	169,595
Term certificate accounts less than or equal to $250,000	526,614	636,343
Brokered deposits	116,991	81,140
Total certificate deposits, net	785,871	887,078
Total deposits	3,365,888	2,942,873
Total reciprocal deposits	$ 107,800	$ 277,900

DEPOSITS - Maturity of deposits

DEPOSITS - Maturity of deposits (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Summary of certificate accounts by maturity
Within 1 year	$ 720,786
Over 1 year to 2 years	45,648
Over 2 years to 3 years	13,174
Over 3 years to 4 years	5,737
Over 4 years to 5 years	1,326
Total certificate deposits	786,671
Less unaccreted acquisition discount	(800)
Total certificate deposits, net	$ 785,871	$ 887,078
Summary of certificate accounts by maturity
Within 1 year	1.25%
Over 1 year to 2 years	1.78%
Over 2 years to 3 years	1.96%
Over 3 years to 4 years	1.16%
Over 4 years to 5 years	0.97%
Weighted average interest rate	1.29%

BORROWED FUNDS - FHLB Advances

BORROWED FUNDS - FHLB Advances (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Short-term borrowed funds	$ 95,000	$ 183,000
Scheduled Maturity
2020	27,000	87,000
2021	41,750	41,750
2022		10,000
2023	20,191	20,195
2024	10,000	10,000
2025 and thereafter	42,165	2,187
Total	141,106	171,132
Redeemable at Call Date
2020	107,000	137,000
2021	21,750	21,750
2023	191	195
2024	10,000	10,000
2025 and thereafter	2,165	2,187
Total	$ 141,106	$ 171,132
Weighted Average Rate
2020	3.01%	2.25%
2021	2.47%	2.47%
2022		1.73%
2023	3.48%	2.43%
2024	1.68%	1.68%
2025 and thereafter	1.34%	1.10%
Total	2.32%	2.16%
Weighted Average Rate
Weighted average rate	0.43%	1.80%

BORROWED FUNDS - Others (Detail

BORROWED FUNDS - Others (Details) - USD ($) $ in Millions	9 Months Ended
BORROWED FUNDS - Others (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Borrowed funds
Amount outstanding	$ 0	$ 0
Federal Reserve Bank of Boston
Borrowed funds
Percentage of carrying value pledged as collateral	59.00%
Amortized borrowing capacity	$ 74.9	46.9
Federal Home Loan Bank Advances
Borrowed funds
Carrying value of the loans pledged as collateral	1,300	$ 1,060
Available borrowing capacity	660.7
Other Loans
Borrowed funds
Additional borrowing capacity	$ 25

OTHER COMMITMENTS AND CONTING_3

OTHER COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Commitments to grant residential real estate loans - HarborOne Mortgage
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	$ 623,593	$ 24,752
Commitments to grant other loans
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	103,213	74,114
Unadvanced funds on home equity lines of credit
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	173,775	157,867
Unadvanced funds on revolving lines of credit
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	167,971	147,047
Unadvanced funds on construction loans
OTHER COMMITMENTS AND CONTINGENCIES
Financial instruments committed contract amount	$ 131,797	$ 112,158

DERIVATIVES (Details)

DERIVATIVES (Details) $ in Thousands	9 Months Ended
DERIVATIVES (Details) $ in Thousands	Sep. 30, 2020USD ($)derivative	Dec. 31, 2019USD ($)
Derivative disclosures
Pledged as collateral	$ 48,900
Other assets
Derivative disclosures
Fair Value, Assets	60,383	$ 16,503
Other liabilities
Derivative disclosures
Fair Value, Liabilities	$ 47,761	15,424
Derivative loan commitments
Derivative disclosures
Loan commitment specified period	60 days
Derivative loan commitments \| Not designated as hedging instruments
Derivative disclosures
Notional Amount	$ 623,593	100,938
Derivative loan commitments \| Not designated as hedging instruments \| Other assets
Derivative disclosures
Fair Value, Assets	15,554	1,385
Derivative loan commitments \| Not designated as hedging instruments \| Other liabilities
Derivative disclosures
Fair Value, Liabilities	77	174
Forward loan sale commitments \| Not designated as hedging instruments
Derivative disclosures
Notional Amount	457,500	88,000
Forward loan sale commitments \| Not designated as hedging instruments \| Other assets
Derivative disclosures
Fair Value, Assets	193	26
Forward loan sale commitments \| Not designated as hedging instruments \| Other liabilities
Derivative disclosures
Fair Value, Liabilities	$ 1,400	158
Interest rate swaps \| Cash Flow Hedging
Derivative disclosures
Number of Derivative Instruments Held \| derivative	1
Maturity term	4 years 6 months
Variable rate	0.67%
Fixed rate	0.35%
Amount to be reclassified in next 12 months	$ 462
Notional Amount	100,000
Fair Value, Liabilities	1,600
Interest rate swaps \| Designated as Hedging Instrument
Derivative disclosures
Notional Amount	100,000
Interest rate swaps \| Designated as Hedging Instrument \| Other liabilities
Derivative disclosures
Fair Value, Liabilities	1,648
Interest rate swaps \| Not designated as hedging instruments
Derivative disclosures
Notional Amount	869,700	725,332
Interest rate swaps \| Not designated as hedging instruments \| Other assets
Derivative disclosures
Fair Value, Assets	44,636	15,092
Interest rate swaps \| Not designated as hedging instruments \| Other liabilities
Derivative disclosures
Fair Value, Liabilities	44,636	15,092
Risk Participation Agreements \| Not designated as hedging instruments
Derivative disclosures
Notional Amount	$ 132,684	$ 134,346

DERIVATIVES - Net gain and loss

DERIVATIVES - Net gain and losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Derivative [Line Items]
Gain (loss) in OCI on derivatives (effective portion), net of tax	$ (1,121)	$ 415	$ 296	$ 4,239
Total	5,493	1,203	13,191	1,884
Designated as Hedging Instrument
Derivative [Line Items]
Gain (loss) in OCI on derivatives (effective portion), net of tax	82		(1,187)
(Loss) gain reclassified from OCI into interest income or interest expense (effective portion)	(82)		67
Mortgage banking income \| Not designated as hedging instruments \| Derivative loan commitments
Derivative [Line Items]
Total	4,738	421	14,266	1,435
Mortgage banking income \| Not designated as hedging instruments \| Forward loan sale commitments
Derivative [Line Items]
Total	$ 755	$ 782	$ (1,075)	$ 449

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details)	Aug. 14, 2019	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)
STOCK-BASED COMPENSATION
Stock based compensation expense		$ 617,000	$ 1,300,000	$ 3,100,000	$ 3,700,000
Stock conversion ratio	1.795431	1.795431	1.795431	1.795431	1.795431

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock options (Details) - Stock Options	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Stock Option Awards
Balance at the beginning of the period \| shares	2,169,243
Forfeited \| shares	(20,948)
Balance at the end of the period \| shares	2,148,295
Exercisable at end of the period \| shares	1,582,663
Unrecognized cost inclusive of directors' awards \| $	$ 991,000
Weighted average remaining recognition period (years)	1 year 4 months 13 days
Weighted Average Exercise Price
Balance at the beginning of the period \| $ / shares	$ 9.87
Forfeited \| $ / shares	10.23
Balance at the end of the period \| $ / shares	9.87
Exercisable at end of the period \| $ / shares	$ 10.07
Weighted Average Remaining Contractual Term (years)
Weighted average remaining contractual term, balance (years)	7 years 3 months 29 days
Exercisable at end of the period	6 years 11 months 15 days
Stock Option Awards, Nonvested
Balance at the beginning of the period \| shares	1,196,545
Vested \| shares	(609,968)
Forfeited \| shares	(20,948)
Balance at the end of the period \| shares	565,629
Weighted Average Exercise Price, Nonvested
Balance at the beginning of the period \| $ / shares	$ 2.66
Vested \| $ / shares	2.72
Forfeited \| $ / shares	2.82
Balance at the end of the period \| $ / shares	$ 2.59

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted stock (Details) - Restricted Stock	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Outstanding Restricted Stock Awards
Non-vested stock awards, beginning balance \| shares	333,765
Vested \| shares	(293,688)
Forfeited \| shares	(8,679)
Non-vested stock awards, ending balance \| shares	31,398
Unrecognized cost inclusive of directors' awards \| $	$ 256,000
Weighted average remaining recognition period (years)	1 year 7 months 13 days
Weighted Average Grant Price
Non-vested stock awards, beginning balance \| $ / shares	$ 10.20
Vested \| $ / shares	10.22
Forfeited \| $ / shares	10.23
Non-vested stock awards, ending balance \| $ / shares	$ 10

MINIMUM REGULATORY CAPITAL RE_3

MINIMUM REGULATORY CAPITAL REQUIREMENTS (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity Tier 1 capital conversation buffer ratio	0.025
Applicable capital conversation buffer ratio	0.025
Common equity Tier 1 to risk-weighted assets [Abstract]
Actual, Capital amount	$ 619,098	$ 590,122
Actual, Ratio	0.176	0.187
Minimum Requirement for Capital Adequacy Purposes	$ 157,971	$ 142,048
Minimum Requirement for Capital Adequacy Purposes, ratio	0.045	0.045
Tier 1 capital to risk weighted assets
Actual, Capital amount	$ 619,098	$ 590,122
Actual, Ratio	0.176	0.187
Minimum Requirement for Capital Adequacy Purposes	$ 210,627	$ 189,397
Minimum Requirement for Capital Adequacy Purposes, ratio	0.060	0.060
Total capital to risk-weighted assets
Actual, Capital amount	$ 698,045	$ 649,182
Actual, Ratio	0.199	0.206
Minimum Requirement for Capital Adequacy Purposes	$ 280,837	$ 252,529
Minimum Requirement for Capital Adequacy Purposes, ratio	0.080	0.080
Tier 1 capital to average assets
Actual, Capital amount	$ 619,098	$ 590,122
Actual, Ratio	0.145	0.153
Minimum Requirement for Capital Adequacy Purposes	$ 171,035	$ 154,659
Minimum Requirement for Capital Adequacy Purposes, ratio	0.040	0.040
HarborOne Bank
Common equity Tier 1 to risk-weighted assets [Abstract]
Actual, Capital amount	$ 486,565	$ 453,707
Actual, Ratio	0.139	0.144
Minimum Requirement for Capital Adequacy Purposes	$ 157,958	$ 142,053
Minimum Requirement for Capital Adequacy Purposes, ratio	0.045	0.045
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions	$ 228,162	$ 205,188
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions, ratio	0.065	0.065
Tier 1 capital to risk weighted assets
Actual, Capital amount	$ 486,565	$ 453,707
Actual, Ratio	0.139	0.144
Minimum Requirement for Capital Adequacy Purposes	$ 210,611	$ 189,404
Minimum Requirement for Capital Adequacy Purposes, ratio	0.060	0.060
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions	$ 280,815	$ 252,539
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions, ratio	0.080	0.080
Total capital to risk-weighted assets
Actual, Capital amount	$ 530,508	$ 477,767
Actual, Ratio	0.151	0.151
Minimum Requirement for Capital Adequacy Purposes	$ 280,815	$ 252,539
Minimum Requirement for Capital Adequacy Purposes, ratio	0.080	0.080
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions	$ 351,018	$ 315,674
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions, ratio	0.100	0.100
Tier 1 capital to average assets
Actual, Capital amount	$ 486,565	$ 453,707
Actual, Ratio	0.114	0.122
Minimum Requirement for Capital Adequacy Purposes	$ 170,933	$ 149,272
Minimum Requirement for Capital Adequacy Purposes, ratio	0.040	0.040
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions	$ 213,666	$ 186,591
Minimum Required to be Considered "Well Capitalized" Under Prompt Corrective Action Provisions, ratio	0.050	0.050

COMPREHENSIVE INCOME (LOSS) (De

COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Components of AOCI
Total accumulated other comprehensive income	$ 1,776	$ 1,480
Securities available for sale
Components of AOCI
Net unrealized gain	4,100	1,899
Related tax effect	(1,137)	(419)
Total accumulated other comprehensive income	2,963	$ 1,480
Cash flow hedge
Components of AOCI
Net unrealized gain	(1,648)
Related tax effect	461
Total accumulated other comprehensive income	$ (1,187)

COMPREHENSIVE INCOME (LOSS) - C

COMPREHENSIVE INCOME (LOSS) - Changes in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	$ 684,455	$ 371,118	$ 665,794	$ 357,574
Amounts reclassified to accumulated other comprehensive income for transfer of securities to available for sale			522
Balance at end of period	694,103	659,554	694,103	659,554
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	2,897	1,466	1,480	(2,358)
Other comprehensive income (loss) before reclassifications	(1,303)		2,631
Amounts reclassified to accumulated other comprehensive income for transfer of securities to available for sale			522
(Loss) gain reclassified from OCI into interest income or interest expense (effective portion)	82		(2,600)
Net current period other comprehensive income (loss)	(1,221)		553
Related tax effect	100		(257)
Balance at end of period	1,776	1,881	1,776	1,881
Securities available for sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	4,166	1,466	1,480	(2,358)
Other comprehensive income (loss) before reclassifications	(1,335)	609	4,212	6,780
Amounts reclassified to accumulated other comprehensive income for transfer of securities to available for sale			522	(1,344)
(Loss) gain reclassified from OCI into interest income or interest expense (effective portion)		(77)	(2,533)
Net current period other comprehensive income (loss)	(1,335)	532	2,201	5,436
Related tax effect	132	(117)	(718)	(1,197)
Balance at end of period	2,963	$ 1,881	2,963	$ 1,881
Cash flow hedge
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance at beginning of period	(1,269)
Other comprehensive income (loss) before reclassifications	32		(1,581)
(Loss) gain reclassified from OCI into interest income or interest expense (effective portion)	82		(67)
Net current period other comprehensive income (loss)	114		(1,648)
Related tax effect	(32)		461
Balance at end of period	$ (1,187)		$ (1,187)

FAIR VALUE OF ASSETS AND LIAB_3

FAIR VALUE OF ASSETS AND LIABILITIES - Derivatives (Details)	Sep. 30, 2020	Dec. 31, 2019
Derivative loan commitments
Assets and liabilities measured on recurring basis
Weighted average pull-through rate	73.00%	85.00%

FAIR VALUE OF ASSETS AND LIAB_4

FAIR VALUE OF ASSETS AND LIABILITIES - Recurring basis (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)item	Sep. 30, 2019USD ($)item	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Assets and liabilities measured on recurring basis
Number of transfers \| item	0	0
Assets
Securities available for sale, at fair value	$ 280,308			$ 239,473
Loans held for sale	190,373			110,552
Mortgage servicing rights	20,159	$ 16,067	$ 16,127	17,150	$ 18,156	$ 22,217
Recurring
Assets
Securities available for sale, at fair value	280,308			239,473
Loans held for sale	190,373			110,552
Mortgage servicing rights	20,159			17,150
Total assets	551,223			383,678
Liabilities
Total liabilities	47,761			15,424
Recurring \| Derivative loan commitments
Assets
Derivative assets	15,554			1,385
Liabilities
Derivative liabilities	77			174
Recurring \| Interest rate management agreement
Liabilities
Derivative liabilities	1,648
Recurring \| Forward loan sale commitments
Assets
Derivative assets	193			26
Liabilities
Derivative liabilities	1,400			158
Recurring \| Interest rate swaps
Assets
Derivative assets	44,636			15,092
Liabilities
Derivative liabilities	44,636			15,092
Recurring \| Level 2
Assets
Securities available for sale, at fair value	280,308			239,473
Loans held for sale	190,373			110,552
Mortgage servicing rights	20,159			17,150
Total assets	535,476			382,267
Liabilities
Total liabilities	46,284			15,092
Recurring \| Level 2 \| Interest rate management agreement
Liabilities
Derivative liabilities	1,648
Recurring \| Level 2 \| Interest rate swaps
Assets
Derivative assets	44,636			15,092
Liabilities
Derivative liabilities	44,636			15,092
Recurring \| Level 3
Assets
Total assets	15,747			1,411
Liabilities
Total liabilities	1,477			332
Recurring \| Level 3 \| Derivative loan commitments
Assets
Derivative assets	15,554			1,385
Liabilities
Derivative liabilities	77			174
Recurring \| Level 3 \| Forward loan sale commitments
Assets
Derivative assets	193			26
Liabilities
Derivative liabilities	$ 1,400			$ 158

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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Changes in Level 3 assets
Balance at beginning of year	$ 10,844	$ 2,494	$ 1,411	$ 1,261
Total gains included in net income	4,903	468	14,336	1,701
Balance at end of period	15,747	2,962	15,747	2,962
Changes in unrealized gains relating to instruments at period end	15,747	2,962	15,747	2,962
Changes in Level 3 liabilities
Balance at beginning of year	(2,067)	(1,182)	(332)	(630)
Total gains (losses) included in net income	590	736	(1,145)	184
Balance at end of period	(1,477)	(446)	(1,477)	(446)
Changes in unrealized losses relating to instruments at period end	$ (1,477)	$ (446)	$ (1,477)	$ (446)

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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Assets and liabilities measured on non-recurring basis
Total Losses	$ 749,000	$ 228,000	$ 3,081,000	$ 339,000
Residential loans
Assets and liabilities measured on non-recurring basis
Total Losses	103,000	26,000	369,000	58,000
Commercial loans
Assets and liabilities measured on non-recurring basis
Total Losses	644,000	181,000	2,654,000	193,000
Other real estate owned and repossessed assets
Assets and liabilities measured on non-recurring basis
Total Losses	2,000	$ 21,000	58,000	$ 88,000
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	25,620,000		25,620,000		13,133,000
Non-recurring \| Level 3 \| Asset held for sale
Assets and liabilities measured on non-recurring basis
Fair value					8,536,000
Non-recurring \| Level 3 \| Residential loans
Assets and liabilities measured on non-recurring basis
Fair value	4,246,000		4,246,000		2,272,000
Non-recurring \| Level 3 \| Commercial loans
Assets and liabilities measured on non-recurring basis
Fair value	20,476,000		20,476,000		1,606,000
Non-recurring \| Level 3 \| Other real estate owned and repossessed assets
Assets and liabilities measured on non-recurring basis
Fair value	$ 898,000		$ 898,000		$ 719,000

FAIR VALUE OF ASSETS AND LIAB_7

FAIR VALUE OF ASSETS AND LIABILITIES - Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial assets:
Cash and cash equivalents	$ 137,518	$ 211,616
Securities available for sale, at fair value	280,308	239,473
Securities held to maturity, at amortized cost		26,372
Federal Home Loan Bank stock	11,631	17,121
Loans held for sale	190,373	110,552
Loans, net	3,466,608	3,147,498
Retirement plan annuities	13,641	13,333
Accrued interest receivable	12,504	9,807
Financial liabilities:
Deposits	3,365,888	2,942,873
Subordinated debt	34,002	33,907
Mortgagors' escrow accounts	7,979	6,053
Accrued interest payable	1,001	1,669
Carrying Amount
Financial assets:
Cash and cash equivalents	137,518	211,616
Securities available for sale, at fair value	280,308	239,473
Securities held to maturity, at amortized cost		26,372
Federal Home Loan Bank stock	11,631	17,121
Loans held for sale	190,373	110,552
Loans, net	3,466,608	3,147,498
Retirement plan annuities	13,641	13,333
Accrued interest receivable	12,504	9,807
Financial liabilities:
Deposits	3,365,888	2,942,873
Borrowed funds	236,106	354,132
Subordinated debt	34,002	33,907
Mortgagors' escrow accounts	7,979	6,053
Accrued interest payable	1,001	1,669
Carrying Amount \| Derivative loan commitments
Derivative commitments/agreements:
Assets	15,554	1,385
Liabilities	77	174
Carrying Amount \| Interest rate management agreement
Derivative commitments/agreements:
Liabilities	1,648
Carrying Amount \| Interest rate swaps
Derivative commitments/agreements:
Assets	44,636	15,092
Liabilities	44,636	15,092
Carrying Amount \| Forward loan sale commitments
Derivative commitments/agreements:
Assets	193	26
Liabilities	1,400	158
Fair Value
Financial assets:
Cash and cash equivalents	137,518	211,616
Securities available for sale, at fair value	280,308	239,473
Securities held to maturity, at amortized cost		26,927
Loans held for sale	190,373	110,552
Loans, net	3,509,251	3,176,442
Retirement plan annuities	13,641	13,333
Accrued interest receivable	12,504	9,807
Financial liabilities:
Deposits	3,369,131	2,943,899
Borrowed funds	239,842	354,881
Subordinated debt	35,291	34,619
Mortgagors' escrow accounts	7,979	6,053
Accrued interest payable	1,001	1,669
Fair Value \| Derivative loan commitments
Derivative commitments/agreements:
Assets	15,554	1,385
Liabilities	77	174
Fair Value \| Interest rate swaps
Derivative commitments/agreements:
Assets	44,636	15,092
Liabilities	44,636	15,092
Fair Value \| Forward loan sale commitments
Derivative commitments/agreements:
Assets	193	26
Liabilities	1,400	158
Fair Value \| Level 1
Financial assets:
Cash and cash equivalents	137,518	211,616
Fair Value \| Level 2
Financial assets:
Securities available for sale, at fair value	280,308	239,473
Securities held to maturity, at amortized cost		26,927
Loans held for sale	190,373	110,552
Accrued interest receivable	12,504	9,807
Financial liabilities:
Borrowed funds	239,842	354,881
Accrued interest payable	1,001	1,669
Fair Value \| Level 2 \| Interest rate swaps
Derivative commitments/agreements:
Assets	44,636	15,092
Liabilities	44,636	15,092
Fair Value \| Level 3
Financial assets:
Loans, net	3,509,251	3,176,442
Retirement plan annuities	13,641	13,333
Financial liabilities:
Deposits	3,369,131	2,943,899
Subordinated debt	35,291	34,619
Mortgagors' escrow accounts	7,979	6,053
Fair Value \| Level 3 \| Derivative loan commitments
Derivative commitments/agreements:
Assets	15,554	1,385
Liabilities	77	174
Fair Value \| Level 3 \| Forward loan sale commitments
Derivative commitments/agreements:
Assets	193	26
Liabilities	$ 1,400	$ 158

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) $ / shares in Units, $ in Thousands		Aug. 14, 2019	Sep. 30, 2020USD ($)$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2020USD ($)$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares
EARNINGS PER SHARE
Net income applicable to common stock \| $			$ 11,893	$ 7,113	$ 27,192	$ 13,961
Average number of common shares outstanding			58,375,742	58,453,259	58,403,825	58,461,953
Less: Average unallocated ESOP shares			(3,910,403)	(2,814,525)	(3,967,735)	(1,606,023)
Average number of common shares outstanding used to calculate basic earnings per common share	[1]		54,465,339	55,638,734	54,436,090	56,855,930
Average number of common shares outstanding used to calculate diluted earnings per common share	[1]		54,465,339	55,638,734	54,436,090	56,855,930
Basic \| $ / shares	[1]		$ 0.22	$ 0.13	$ 0.50	$ 0.25
Diluted \| $ / shares	[1]		$ 0.22	$ 0.13	$ 0.50	$ 0.25
Stock conversion ratio		1.795431	1.795431	1.795431	1.795431	1.795431
Stock Options
EARNINGS PER SHARE
Antidilutive securities excluded from computation of earnings per share			2,148,295	2,240,307	2,148,295	2,240,307

[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 (see Note 1).

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT REPORTING (Details) $ in Thousands	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)segment	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Segment Reporting Information
Number of reportable segments \| segment			2
Net interest and dividend income (expense)	$ 31,169	$ 27,985	$ 87,316	$ 80,728
Provision for loan losses	13,454	889	27,207	3,496
Net interest and dividend income, after provision for loan losses	17,715	27,096	60,109	77,232
Mortgage banking income:
Gain on sale of mortgage loans	34,055	11,015	77,195	24,086
Changes in mortgage servicing rights fair value	(193)	(2,474)	(5,691)	(6,866)
Other	4,281	2,964	10,962	7,442
Total mortgage banking income	38,143	11,505	82,466	24,662
Other noninterest income (loss)	6,318	5,768	19,499	18,171
Total noninterest income	44,461	17,273	101,965	42,833
Noninterest expense	45,722	36,203	124,948	103,876
Income (loss) before income taxes	16,454	8,166	37,126	16,189
Provision for income taxes	4,561	1,053	9,934	2,228
Net income	11,893	7,113	27,192	13,961
Total assets at year end	4,428,319	3,949,020	4,428,319	3,949,020	$ 4,058,921
Balance, end of year	69,802	69,635	69,802	69,635
HarborOne Bank
Mortgage banking income:
Balance, end of year	59,000		59,000
HarborOne Mortgage
Mortgage banking income:
Balance, end of year	10,800		10,800
Operating Segments \| HarborOne Bank
Segment Reporting Information
Net interest and dividend income (expense)	30,599	27,855	86,248	81,296
Provision for loan losses	13,454	889	27,207	3,496
Net interest and dividend income, after provision for loan losses	17,145	26,966	59,041	77,800
Mortgage banking income:
Gain on sale of mortgage loans				1
Intersegment gain (loss)	(645)	(393)	(2,444)	(866)
Changes in mortgage servicing rights fair value	(354)	(591)	(2,014)	(1,599)
Other	334	369	1,031	1,127
Total mortgage banking income	(665)	(615)	(3,427)	(1,337)
Other noninterest income (loss)	6,326	5,772	19,640	18,191
Total noninterest income	5,661	5,157	16,213	16,854
Noninterest expense	26,300	24,405	75,806	74,527
Income (loss) before income taxes	(3,494)	7,718	(552)	20,127
Provision for income taxes	571	1,019	2,199	3,267
Net income	(4,065)	6,699	(2,751)	16,860
Total assets at year end	4,404,842	3,821,671	4,404,842	3,821,671
Balance, end of year	59,042	58,875	59,042	58,875
Operating Segments \| HarborOne Mortgage
Segment Reporting Information
Net interest and dividend income (expense)	1,000	285	2,020	604
Net interest and dividend income, after provision for loan losses	1,000	285	2,020	604
Mortgage banking income:
Gain on sale of mortgage loans	34,055	11,015	77,195	24,085
Intersegment gain (loss)	645	393	2,444	866
Changes in mortgage servicing rights fair value	161	(1,883)	(3,677)	(5,267)
Other	3,947	2,595	9,931	6,315
Total mortgage banking income	38,808	12,120	85,893	25,999
Other noninterest income (loss)	(8)	(4)	(141)	(20)
Total noninterest income	38,800	12,116	85,752	25,979
Noninterest expense	19,156	11,227	48,235	27,496
Income (loss) before income taxes	20,644	1,174	39,537	(913)
Provision for income taxes	4,550	171	8,667	(256)
Net income	16,094	1,003	30,870	(657)
Total assets at year end	280,983	152,800	280,983	152,800
Balance, end of year	10,760	10,760	10,760	10,760
Operating Segments \| HarborOne Bancorp, Inc.
Segment Reporting Information
Net interest and dividend income (expense)	(430)	(155)	(952)	(1,172)
Net interest and dividend income, after provision for loan losses	(430)	(155)	(952)	(1,172)
Mortgage banking income:
Noninterest expense	266	571	907	1,853
Income (loss) before income taxes	(696)	(726)	(1,859)	(3,025)
Provision for income taxes	(560)	(137)	(932)	(783)
Net income	(136)	(589)	(927)	(2,242)
Total assets at year end	729,838	693,851	729,838	693,851
Eliminations
Mortgage banking income:
Total assets at year end	$ (987,344)	$ (719,302)	$ (987,344)	$ (719,302)