OTHER COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

OTHER COMMITMENTS AND CONTINGENCIES

OTHER COMMITMENTS AND CONTINGENCIES

9. OTHER COMMITMENTS AND CONTINGENCIES

ACL on Unfunded Commitments

The ACL on unfunded commitments amounted to $3.4 million and $5.0 million at March 31, 2024 and 2023, respectively. The activity in the ACL on unfunded commitments for the three months ended March 31, 2024 and 2023 is presented below:

	Residential		Commercial		Commercial		Commercial
	Real Estate		Real Estate		Construction		and Industrial		Consumer		Total
	(in thousands)
Balance at December 31, 2023	$	254	$	411	$	2,351	$	882	$	20	$	3,918
Provision		4		(51)		(421)		(37)		(1)		(506)
Balance at March 31, 2024	$	258	$	360	$	1,930	$	845	$	19	$	3,412
Balance at December 31, 2022	$	336	$	628	$	3,079	$	870	$	14	$	4,927
Provision		(74)		(80)		198		70		5		119
Balance at March 31, 2023	$	262	$	548	$	3,277	$	940	$	19	$	5,046

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 March 31, 2024 and December 31, 2023. The contract amounts represent credit risk.

	March 31,		December 31,
	2024		2023
	(in thousands)
Commitments to grant residential real estate loans-HarborOne Mortgage	$	48,624	$	35,029
Commitments to grant other loans		39,967		48,547
Unadvanced funds on home equity lines of credit		264,888		260,376
Unadvanced funds on revolving lines of credit		283,982		306,943
Unadvanced funds on construction loans		175,514		210,829

Commitments to extend credit and unadvanced portions 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 and 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.