10.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.

Expense related to awards granted to employees is recognized as compensation expense, and expense related to awards granted to directors is recognized as directors’ fees within noninterest expense. Total expense for the Equity Plan was $1.3 million and $1.1 million for the three months ended March 31, 2020 and 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 three months ended March 31, 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 three months ended March 31, 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		—		—						(176,161)		2.47
Forfeited		—		—						—		—
Expired		—		—						—		—
Balance at March 31, 2020		2,169,243	$	9.87		8.00	$	—		1,020,384	$	2.70
Exercisable at March 31, 2020		1,148,859	$	10.01		7.70	$	—
Unrecognized cost inclusive of directors' awards	$	1,829,000
Weighted average remaining recognition period (years)		1.48

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 three months ended March 31, 2020:


	Restricted		Weighted Average
	Stock Awards		Grant Price

Non-vested stock awards at January 1, 2020		333,766	$	10.20
Vested		(3,780)		8.82
Granted		—		—
Forfeited		—		—
Non-vested stock awards at March 31, 2020		329,986	$	10.21
Unrecognized cost inclusive of directors' awards	$	1,445,000
Weighted average remaining recognition period (years)		0.78