Randolph Bancorp, Inc. Announces First Quarter 2021 Financial Results

Rhea-AI Summary

On April 27, 2021, Randolph Bancorp reported net income of $4.1 million, equating to $0.81 per share for Q1 2021, a decline from $5.3 million in Q4 2020. Compared to Q1 2020's net loss of $0.8 million, this represents significant recovery. Total assets grew to $738.2 million, marking a 2.4% increase from the previous quarter. Notably, non-interest income fell by $3.2 million due to reduced loan origination gains, while non-interest expenses decreased 7.6% to $12.0 million. The bank's focus on expanding consumer and commercial banking remains optimistic amid pandemic challenges.

Positive

• Net income increased to $4.1 million from a net loss of $0.8 million in Q1 2020.
• Total assets rose by $85.3 million, or 13.1%, year-over-year.
• Non-brokered deposits increased by $31.5 million, or 6.3%, in Q1 2021.
• Net interest income grew by 15.1%, totaling $5.1 million compared to Q1 2020.
• Mortgage servicing fees skyrocketed 183.3% from the previous quarter.

Negative

• Net income decreased from $5.3 million in Q4 2020 to $4.1 million in Q1 2021.
• Non-interest income dropped by 20.3% from $15.6 million in Q4 2020 to $12.4 million in Q1 2021.
• Net interest margin declined by 6 basis points to 2.96% compared to Q4 2020.

STOUGHTON, Mass., April 27, 2021 (GLOBE NEWSWIRE) -- Randolph Bancorp, Inc. (the “Company”) (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the “Bank”), today announced net income of $4.1 million, or $0.81 per basic share and $0.78 per diluted share, for the three months ended March 31, 2021 compared to net income of $5.3 million, or $1.03 per basic and $1.01 per diluted share for the three months ended December 31, 2020 and a net loss of $0.8 million, or $0.16 per basic and diluted share, for the three months ended March 31, 2020. Excluding one-time charges of $109,000 in severance expenses, earnings were $4.2 million, or $0.79 per diluted share for the three months ended March 31, 2021. Excluding one-time charges of $294,000 related to the closing of a residential lending office and $69,000 in severance expenses, earnings were $5.6 million, or $1.06 per diluted share, for the three months ended December 31, 2020.

At March 31, 2021, total assets amounted to $738.2 million, compared to $721.1 million at December 31, 2020, an increase of $17.1 million, or 2.4%. An increase in cash and cash equivalents of $41.2 million was partially offset by a decrease in loans held for sale of $25.9 million relative to the prior quarter. Compared to March 31, 2020, total assets grew $85.3 million, or 13.1% from $652.9 million. The growth from the prior year period was caused by an increase in loans held for sale of $34.4 million, or 58.5%, an increase in commercial real estate loans of $20.3 million, or 16.1%, and an increase in commercial and industrial loans of $14.8 million, or 164.3%, driven by lending associated with the Small Business Administration’s (the “SBA’s”) Paycheck Protection Program (“PPP”).

William M. Parent, President and Chief Executive Officer, stated, “The first quarter was another strong quarter for our Company, as mortgage refinancing volume, combined with improving banking results, drove performance metrics to elevated levels. We are very pleased with our performance as we migrate our mortgage banking operations from a higher volume refinance environment to more normalized levels while continuing to expand our consumer and commercial banking business. We remain optimistic regarding local economic activity, our ability to continue to grow our business and generate recurring operating leverage.”

First Quarter Operating Results
Net interest income increased by $51,000, or 1.0%, to $5.1 million for the three months ended March 31, 2021 from $5.0 million for the three months ended December 31, 2020. This increase was primarily due to an increase in average loans and a decrease in the cost of funds driven by a shortening of deposit liabilities and a decline in the cost of non-maturity deposits from the prior quarter. The average balance of term certificates decreased $15.3 million, or 13.6%, from the prior quarter and the average balance of savings and NOW accounts increased $19.2 million, or 8.0%, from the prior quarter. This contributed to a decrease of 9 basis points in the cost of interest-bearing liabilities. The net interest margin decreased in the first quarter by 6 basis points to 2.96% from 3.02% in the prior quarter. The change reflects a decrease of 11 basis points in loan yields, due to a decline in the forgiveness of SBA PPP loans, which resulted in a decline in loan yields of 2 basis points, and payoffs of higher yielding loans.

The net interest margin increased in the first quarter of 2021 to 2.96%, from 2.91% in the first quarter of 2020. The change reflects the shortening and downward pricing of deposit liabilities, exceeding the decreases in the rates earned on interest-earning assets because of the lower interest-rate environment. Net interest income increased by $666,000, or 15.1%, to $5.1 million for the three months ended March 31, 2021 from $4.4 million the same period in the prior year. This increase was primarily due to a decrease in deposit costs, complemented by change in the mix of deposits. The average balance of savings and NOW accounts in the first quarter of 2021 increased $55.5 million, or 41.1% and $30.5 million, or 78.0%, respectively, from the prior year quarter and the average balance of term certificates decreased $91.7 million, or 48.6%, from the prior year quarter, contributing to an 80 basis point decrease in the cost of interest-bearing liabilities. This decrease was primarily driven by an 89 basis point decline in the cost of interest-bearing deposits, as market interest rates declined sharply from the prior year.

The Company recognized a credit for loan losses of $213,000 for the quarter ended March 31, 2021, driven by changes in the qualitative factors related to the impact of the COVID-19 pandemic and the economic outlook used in the Company’s calculation. The allowance for loan losses was 1.32%, 1.38% and 1.04% of total loans at March 31, 2021, December 31, 2020 and March 31, 2020, respectively, and was 79.0%, 94.6% and 146.6% of non-performing assets at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

Non-interest income decreased $3.2 million, or 20.3%, to $12.4 million for the quarter ended March 31, 2021 from $15.6 million in the quarter ended December 31, 2020, due to a decrease of $3.6 million in the net gain on loan origination and sale activities, partially offset by an increase of $504,000 related to net mortgage servicing fees. Sold mortgages totaled $503.3 million in the first quarter of 2021, compared to $426.5 million in the fourth quarter of 2020. The first quarter of 2021 ended with a mortgage pipeline of $239.5 million, compared to a pipeline of $396.6 million at the end of the fourth quarter of 2020, contributing to the decrease in the net gain on loan origination and sales activities. Mortgage servicing fees increased $504,000, or 183.3% for the first quarter of 2021 to $779,000 from $275,000 in the fourth quarter of 2020 due to a fair value adjustment of $421,000 in the first quarter of 2021, based on an increase in mortgage interest rates from the prior quarter.

Non-interest income increased $6.0 million, or 92.6%, to $12.4 million for the quarter ended March 31, 2021 from $6.5 million for the quarter ended March 31, 2020, principally due to an increase of $3.8 million in the net gain on loan origination and sale activities and an increase of $2.0 million in net mortgage servicing fees. Sold mortgage loans totaled $503.3 million in the first quarter of 2021, compared to sold mortgage loans of $217.9 million during the first quarter of 2020. The first quarter of 2021 ended with a mortgage pipeline of $239.5 million, compared to a pipeline of $395.6 million at the end of the first quarter of 2020. Mortgage servicing fees increased $2.0 million in the quarter ended March 31, 2021, principally due to an impairment of mortgage servicing rights of $1.6 in the quarter ended March 31, 2020.

Non-interest expenses decreased $976,000, or 7.6%, to $12.0 million in the quarter ended March 31, 2021 from $12.9 million in the quarter ended December 30, 2020. The decrease was due to a decrease in occupancy and equipment costs of $406,000, or 35.3%, and a provision for unfunded commitments of $584,000 taken in the fourth quarter of 2020. Occupancy and equipment expenses decreased $406,000 in the quarter ended March 31, 2021 from the prior quarter due to the closing of residential lending offices in the fourth quarter of 2020, which resulted in a one-time charge of $294,000. Other non-interest expenses comprising professional fees, marketing, FDIC insurance and other non-interest expenses decreased by $285,000, or 9.3% in the quarter ended March 31, 2021 versus the prior quarter, as the fourth quarter of 2020 included a $584,000 provision for unfunded loan commitments.

Non-interest expenses increased $992,000 to $12.0 million in the quarter ended March 31, 2021 from $11.0 million in the quarter ended March 31, 2020. The increase is principally due to an increase in salaries and employee benefits of $311,000, primarily attributed to higher commissions and incentives associated with increased residential loan production, partially offset by a $1.4 million charge related to the retirement of senior executives in the first quarter of 2020. In addition, other non-interest expenses increased $463,000 from the prior year quarter due to elevated loan production costs. Occupancy and equipment expenses increased $46,000 in the quarter ended March 31, 2021 over the prior year period due to seasonal increases in snowplowing expenses. Other non-interest expenses comprising professional fees, marketing, FDIC insurance and other non-interest expenses increased by $635,000, or 29.7% in the quarter ended March 31, 2021 versus the prior year period, due to elevated mortgage loan production costs.

Balance Sheet
At March 31, 2021, total assets amounted to $738.2 million, compared to $721.1 million at December 31, 2020, an increase of $17.1 million, or 2.4%. A $41.2 million increase in cash and cash equivalents from the prior quarter was partially offset by a $25.9 million decrease in loans held for sale. Net loan growth of $8.4 million, or 1.7%, was driven by SBA PPP loan originations of $10.2 million. SBA PPP loans totaled $14.7 million at the end of the first quarter of 2021. Non-brokered deposits increased by $31.5 million, or 6.3%, to $528.0 million from $496.6 million in the prior quarter.

Total assets at March 31, 2021 increased $85.3 million, or 13.1% from $652.9 million at March 31, 2020. Contributing to asset growth was a $34.4 million increase in loans held for sale to $93.2 million at March 31, 2021 from $58.8 million at March 31, 2020. Cash and cash equivalents increased by $33.7 million, or 159.0%, to $55.0 million at March 31, 2021 from $21.2 million at March 31, 2020, mainly as a result of strong core growth in deposits and higher loan sales at quarter end. Net loans increased by $15.8 million, or 3.3%, to $492.0 million at March 31, 2021 from $476.2 million at March 31, 2020, mainly as a result commercial real estate growth of $20.3 million, or 16.1%, as we focus on diversifying our loan mix and reducing our exposure to long-term fixed rate 1-4 family residential loans. Another factor for net loan growth was an increase in commercial and industrial loans of $14.8 million, or 164.3%, driven by SBA PPP lending.

The increase in total assets at March 31, 2021 from the prior quarter was funded by deposit growth. Non-brokered deposits totaled $528.0 million at March 31, 2021, increasing by $31.5 million, or 6.3%, during the quarter from $496.6 million at December 31, 2020. Driving the growth in non-brokered deposits were customers’ receipt of government stimulus and our focus on deposit gathering. Federal Home Loan Bank of Boston (“FHLBB”) and Federal Reserve Bank advances decreased by $13.3 million to $60.0 million at March 31, 2021, from $73.3 million at December 31, 2020, primarily as a result of the full repayment of Federal Reserve Bank advances.

The increase in total assets from the prior year quarter was also funded by continued deposit growth. Non-brokered deposits totaled $528.0 million at March 31, 2021, increasing by $109.0 million, or 26.0%, during the quarter ended March 31, 2021 from $419.1 million at March 31, 2020. Driving the growth in non-brokered deposits was customers’ receipt of government stimulus and our focus on deposit gathering. Brokered deposits decreased by $53.7 million to $32.2 million at March 31, 2021, from $86.0 million at March 31, 2020. FHLBB advances increased by $8.0 million to $60.0 million at March 31, 2021, from $52.0 million at March 31, 2020.

Total stockholders’ equity was $100.9 million at March 31, 2021 compared to $99.8 million at December 31, 2020. The increase of $1.0 million reflects net income during the first quarter of $4.1 million, partially offset by share repurchases of $2.7 million and a decrease in the fair value of available-for-sale equity securities, net of taxes, of $794,000.

Total stockholders’ equity was $100.9 million at March 31, 2021 compared to $79.0 million at March 31, 2020. The increase of $21.9 million relates mainly to net income from the previous twelve months of $24.9 million, partially offset by share repurchases of $3.2 million and a decrease in the fair value of available-for-sale securities, net of taxes, of $927,000. In addition, equity adjustments related to equity-based compensation amounted to an increase of $1.1 million.

COVID-19 Impact
In response to the impact of the COVID-19 pandemic on our customers and our business, the Company implemented a series of measures through the date of this release, including participation in the PPP, for which we funded $25.6 million of SBA PPP Loans through March 31, 2021, and granting payment deferrals for residential mortgage, home equity and certain commercial borrowers who were current in their payments at the time the deferral was requested. Depending on the circumstances of the borrowers, the forbearance calls for a reduced or full deferral of payment. Please refer to the Loan Payment Deferrals and COVID-19 Most Impacted Sections for statistics on loan payment deferrals and the commercial loan sectors we believe could be exposed to the economic impact of the COVID-19 pandemic.

About Randolph Bancorp, Inc.
Randolph Bancorp, Inc. is the holding company for Envision Bank and its Envision Mortgage Division. Envision Bank is a full-service community bank with five retail branch locations, loan operations centers in North Attleboro and Stoughton, Massachusetts, three loan production offices located in Massachusetts and one loan production office in Southern New Hampshire.

Forward Looking Statements
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the negative impacts and disruptions of the COVID-19 pandemic and the measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; changes in the general business and economic conditions on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in consumer behavior due to changing political, business and economic conditions or legislative or regulatory initiatives; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; and the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as return on average assets, return on average equity, the efficiency ratio, profit percentage, tangible book value per share and, where applicable, as adjusted for non-recurring items. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of on-going business activities, and to enhance comparability with peers across the financial services sector.

Randolph Bancorp, Inc.
Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)

														% Change
		March 31,				December 31,				March 31,				Mar 2021 vs.				Mar 2021 vs.
		2021				2020				2020				Dec 2020				Mar 2020
Assets
Cash and cash equivalents		$	54,950			$	13,774			$	21,245				298.9	%			158.6	%
Certificates of deposit			-				-				490			- %					(100.0	)%
Securities available for sale, at fair value			54,148				55,366				55,465				(2.2	)%			(2.4	)%
Loans held for sale, at fair value			93,176				119,112				58,781				(21.8	)%			58.5	%
Loans:
1-4 family residential			239,190				235,648				250,006				1.5	%			(4.3	)%
Home equity			49,073				48,166				43,503				1.9	%			12.8	%
Commercial real estate			146,930				143,893				126,608				2.1	%			16.1	%
Construction			29,975				31,050				35,327				(3.5	)%			(15.1	)%
Total real estate loans			465,168				458,757				455,444				1.4	%			2.1	%
Commercial and industrial			23,869				20,259				9,030				17.8	%			164.3	%
Consumer			8,724				10,289				15,344				(15.2	)%			(43.1	)%
Total loans			497,761				489,305				479,818				1.7	%			3.7	%
Allowance for loan losses			(6,563	)			(6,784	)			(4,996	)			(3.3	)%			31.4	%
Net deferred loan costs and fees, and purchase premiums			785				1,123				1,404				(30.1	)%			(44.1	)%
Loans, net			491,983				483,644				476,226				1.7	%			3.3	%
Federal Home Loan Bank of Boston stock, at cost			3,576				3,576				2,873				0.0	%			24.5	%
Accrued interest receivable			1,501				1,562				1,397				(3.9	)%			7.4	%
Mortgage servicing rights, net			14,744				12,377				7,488				19.1	%			96.9	%
Premises and equipment, net			4,709				4,781				5,667				(1.5	)%			(16.9	)%
Bank-owned life insurance			8,662				8,622				8,486				0.5	%			2.1	%
Foreclosed real estate, net			132				132				132				0.0	%			0.0	%
Other assets			10,607				18,126				14,636				(41.5	)%			(27.5	)%
Total assets		$	738,188			$	721,072			$	652,886				2.4	%			13.1	%
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing		$	118,623			$	96,731			$	65,017				22.6	%			82.4	%
Savings accounts			192,712				185,481				144,980				3.9	%			32.9	%
NOW accounts			62,772				53,530				39,598				17.3	%			58.5	%
Money market accounts			78,236				77,393				67,220				1.1	%			16.4	%
Term certificates			75,690				83,444				102,253				(9.3	)%			(26.0	)%
Brokered			32,225				31,728				85,951				1.6	%			(62.5	)%
Total deposits			560,258				528,307				505,019				6.0	%			10.9	%
Federal Reserve Bank advances			-				11,431				-				(100.0	)%		- %
Federal Home Loan Bank of Boston advances			60,024				61,895				52,013				(3.0	)%			15.4	%
Mortgagors' escrow accounts			1,924				2,338				2,074				(17.7	)%			(7.2	)%
Post-employment benefit obligations			2,235				2,382				2,329				(6.2	)%			(4.0	)%
Other liabilities			12,888				14,900				12,495				(13.5	)%			3.1	%
Total liabilities			637,329				621,253				573,930				2.6	%			11.0	%
Stockholders' Equity:
Common stock			53				54				55				(1.9	)%			(3.6	)%
Additional paid-in capital			48,613				50,937				50,832				(4.6	)%			(4.4	)%
Retained earnings			55,801				51,689				30,939				8.0	%			80.4	%
ESOP-Unearned compensation			(3,709	)			(3,756	)			(3,897	)			(1.3	)%			(4.8	)%
Accumulated other comprehensive income, net of tax			101				895				1,027				(88.7	)%			(90.2	)%
Total stockholders' equity			100,859				99,819				78,956				1.0	%			27.7	%
Total liabilities and stockholders' equity		$	738,188			$	721,072			$	652,886				2.4	%			13.1	%

Randolph Bancorp, Inc.
Consolidated Balance Sheet Trend
(Dollars in thousands)
(Unaudited)

		March 31,				December 31,				September 30,				June 30,				March 31,
			2021				2020				2020				2020				2020
Assets
Cash and cash equivalents		$	54,950			$	13,774			$	49,091			$	76,003			$	21,245
Certificates of deposit			-				-				-				490				490
Securities available for sale, at fair value			54,148				55,366				55,551				54,462				55,465
Loans held for sale, at fair value			93,176				119,112				87,805				61,673				58,781
Loans:
1-4 family residential			239,190				235,648				235,955				246,236				250,006
Home equity			49,073				48,166				48,097				43,493				43,503
Commercial real estate			146,930				143,893				141,862				134,750				126,608
Construction			29,975				31,050				32,064				35,181				35,327
Total real estate loans			465,168				458,757				457,978				459,660				455,444
Commercial and industrial			23,869				20,259				20,388				22,940				9,030
Consumer			8,724				10,289				11,696				13,435				15,344
Total loans			497,761				489,305				490,062				496,035				479,818
Allowance for loan losses			(6,563	)			(6,784	)			(6,597	)			(6,059	)			(4,996	)
Net deferred loan costs and fees, and purchase premiums			785				1,123				1,083				962				1,404
Loans, net			491,983				483,644				484,548				490,938				476,226
Federal Home Loan Bank of Boston stock, at cost			3,576				3,576				3,797				4,072				2,873
Accrued interest receivable			1,501				1,562				1,654				1,760				1,397
Mortgage servicing rights, net			14,744				12,377				10,944				8,094				7,488
Premises and equipment, net			4,709				4,781				5,133				5,313				5,667
Bank-owned life insurance			8,662				8,622				8,577				8,532				8,486
Foreclosed real estate, net			132				132				132				132				132
Other assets			10,607				18,126				15,736				12,572				14,636
Total assets		$	738,188			$	721,072			$	722,968			$	724,041			$	652,886
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing		$	118,623			$	96,731			$	93,352			$	89,014			$	65,017
Savings accounts			192,712				185,481				175,316				165,234				144,980
NOW accounts			62,772				53,530				47,032				48,014				39,598
Money market accounts			78,236				77,393				74,874				75,827				67,220
Term certificates			75,690				83,444				94,438				104,905				102,253
Brokered			32,225				31,728				37,273				55,972				85,951
Total deposits			560,258				528,307				522,285				538,966				505,019
Federal Reserve Bank advances			-				11,431				15,318				15,010				-
Federal Home Loan Bank of Boston advances			60,024				61,895				66,903				71,944				52,013
Mortgagors' escrow accounts			1,924				2,338				1,959				1,824				2,074
Post-employment benefit obligations			2,235				2,382				2,289				2,319				2,329
Other liabilities			12,888				14,900				19,276				9,449				12,495
Total liabilities			637,329				621,253				628,030				639,512				573,930
Stockholders' Equity:
Common stock			53				54				55				55				55
Additional paid-in capital			48,613				50,937				51,201				51,013				50,832
Retained earnings			55,801				51,689				46,415				36,130				30,939
ESOP-Unearned compensation			(3,709	)			(3,756	)			(3,803	)			(3,850	)			(3,897	)
Accumulated other comprehensive income, net of tax			101				895				1,070				1,181				1,027
Total stockholders' equity			100,859				99,819				94,938				84,529				78,956
Total liabilities and stockholders' equity		$	738,188			$	721,072			$	722,968			$	724,041			$	652,886

Randolph Bancorp, Inc.
Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)

		Three Months Ended												% Change
		March 31,				December 31,				March 31,				Mar 2021 vs.				Mar 2021 vs.
		2021				2020				2020				Dec 2020				Mar 2020
Interest and dividend income:
Loans		$	5,508			$	5,532			$	5,620				(0.4	)%			(2.0	)%
Other interest and dividend income			253				296				433				(14.5	)%			(41.6	)%
Total interest and dividend income			5,761				5,828				6,053				(1.1	)%			(4.8	)%
Interest expense			670				788				1,628				(15.0	)%			(58.8	)%
Net interest income			5,091				5,040				4,425				1.0	%			15.1	%
Provision (credit) for loan losses			(213	)			215				724				(199.1	)%			(129.4	)%
Net interest income after provision (credit) for loan losses			5,304				4,825				3,701				9.9	%			43.3	%
Non-interest income:
Customer service fees			367				381				306				(3.7	)%			19.9	%
Gain on loan origination and sale activities, net			10,993				14,620				7,144				(24.8	)%			53.9	%
Mortgage servicing fees, net			779				275				(1,254	)			183.3	%			(162.1	)%
Other			284				311				255				(8.7	)%			11.4	%
Total non-interest income			12,423				15,587				6,451				(20.3	)%			92.6	%
Non-interest expenses:
Salaries and employee benefits			8,437				8,722				8,126				(3.3	)%			3.8	%
Occupancy and equipment			744				1,150				698				(35.3	)%			6.6	%
Professional fees			561				389				405				44.2	%			38.5	%
Marketing			170				231				152				(26.4	)%			11.8	%
FDIC insurance			54				51				56				5.9	%			(3.6	)%
Other non-interest expenses			1,985				2,384				1,522				(16.7	)%			30.4	%
Total non-interest expenses			11,951				12,927				10,959				(7.6	)%			9.1	%
Income (loss) before income taxes			5,776				7,485				(807	)			(22.8	)%			(815.7	)%
Income tax expense			1,664				2,211				11				(24.7	)%			15027.3	%
Net income (loss)		$	4,112			$	5,274			$	(818	)			(22.0	)%			(602.7	)%
Net income (loss) per share:
Basic		$	0.81			$	1.03			$	(0.16	)
Diluted		$	0.78			$	1.01			$	(0.16	)
Weighted average shares outstanding:
Basic			5,056,165				5,135,069				5,158,294
Diluted			5,254,907				5,244,414				5,158,294

Randolph Bancorp, Inc.
Consolidated Statements of Operations Trend
(Dollars in thousands except per share amounts)
(Unaudited)

		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2021				2020				2020				2020				2020
Interest and dividend income:
Loans		$	5,508			$	5,532			$	5,337			$	5,723			$	5,620
Other interest and dividend income			253				296				311				336				433
Total interest and dividend income			5,761				5,828				5,648				6,059				6,053
Interest expense			670				788				979				1,326				1,628
Net interest income			5,091				5,040				4,669				4,733				4,425
Provision (credit) for loan losses			(213	)			215				546				1,068				724
Net interest income after provision (credit) for loan losses			5,304				4,825				4,123				3,665				3,701
Non-interest income:
Customer service fees			367				381				330				266				306
Gain on loan origination and sale activities, net			10,993				14,620				18,102				14,370				7,144
Mortgage servicing fees, net			779				275				1,180				(1,354	)			(1,254	)
Other			284				311				262				217				255
Total non-interest income			12,423				15,587				19,874				13,499				6,451
Non-interest expenses:
Salaries and employee benefits			8,437				8,722				7,911				8,402				8,126
Occupancy and equipment			744				1,150				859				838				698
Professional fees			561				389				253				230				405
Marketing			170				231				154				152				152
FDIC insurance			54				51				41				39				56
Other non-interest expenses			1,985				2,384				1,833				1,718				1,522
Total non-interest expenses			11,951				12,927				11,051				11,379				10,959
Income (loss) before income taxes			5,776				7,485				12,946				5,785				(807	)
Income tax expense			1,664				2,211				2,661				594				11
Net income (loss)		$	4,112			$	5,274			$	10,285			$	5,191			$	(818	)
Net income (loss) per share:
Basic		$	0.81			$	1.03			$	2.01			$	1.02			$	(0.16	)
Diluted		$	0.78			$	1.01			$	2.01			$	1.02			$	(0.16	)
Weighted average shares outstanding:
Basic			5,056,165				5,135,069				5,120,367				5,092,490				5,158,294
Diluted			5,254,907				5,244,414				5,120,367				5,092,490				5,158,294

Randolph Bancorp, Inc.
Average Balances/Yields
(Dollars in thousands)
(Unaudited)

	Three Months Ended
	March 31, 2021												December 31, 2020												March 31, 2020
	Average				Interest				Average				Average				Interest				Average				Average				Interest				Average
	Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/
(Dollars in thousands)	Balance				Paid				Rate				Balance				Paid				Rate				Balance				Paid				Rate
Interest-earning assets:
Loans (1)	$	594,021			$	5,508				3.71	%		$	580,002			$	5,532				3.82	%		$	531,141			$	5,620				4.23	%
Investment securities(2) (3)		57,818				247				1.71	%			58,329				290				1.99	%			58,799				379				2.58	%
Interest-earning deposits		35,492				7				0.08	%			30,573				8				0.10	%			18,458				56				1.21	%
Total interest-earning assets		687,331				5,762				3.35	%			668,904				5,830				3.49	%			608,398				6,055				3.98	%
Noninterest-earning assets		42,045												45,015												31,774
Total assets	$	729,376											$	713,919											$	640,172
Interest-bearing liabilities:
Savings accounts		190,313				98				0.21	%			181,653				142				0.31	%			134,843				284				0.84	%
NOW accounts		69,511				48				0.28	%			59,005				43				0.29	%			39,049				51				0.52	%
Money market accounts		75,994				54				0.28	%			75,106				62				0.33	%			78,394				197				1.01	%
Term certificates		96,978				238				0.98	%			112,260				293				1.04	%			188,654				893				1.89	%
Total interest-bearing deposits		432,796				438				0.40	%			428,024				540				0.50	%			440,940				1,425				1.29	%
FHLBB and FRB advances		70,857				232				1.31	%			77,584				247				1.27	%			47,102				203				1.72	%
Total interest-bearing liabilities		503,653				670				0.53	%			505,608				787				0.62	%			488,042				1,628				1.33	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		106,929												94,540												62,718
Other noninterest-bearing liabilities		15,375												13,539												9,549
Total liabilities		625,957												613,687												560,309
Total stockholders' equity		103,419												100,232												79,863
Total liabilities and stockholders' equity	$	729,376											$	713,919											$	640,172
Net interest income					$	5,092											$	5,043											$	4,427
Interest rate spread(4)										2.82	%											2.87	%											2.65	%
Net interest-earning assets(5)	$	183,678											$	163,296											$	120,356
Net interest margin(6)										2.96	%											3.02	%											2.91	%
Ratio of interest-earning assets to interest-bearing liabilities		136.47	%											132.30	%											124.66	%

(1) Includes nonaccruing loan balances and interest received on such loans.
(2) Includes carrying value of securities classified as available-for-sale and FHLBB stock.
(3) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $1,000, $1,000 and $2,000 for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, respectively.
(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.

Randolph Bancorp, Inc.
Average Balances Trend
(Dollars in thousands)
(Unaudited)

		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2021				2020				2020				2020				2020
Interest-earning assets:
Total loans		$	594,021			$	580,002			$	559,370			$	576,964			$	531,141
Investment securities			57,818				58,329				57,211				58,119				58,799
Interest-earning deposits			35,492				30,573				48,949				22,918				18,458
Total interest-earning assets			687,331				668,904				665,530				658,001				608,398
Non-interest earning assets			42,045				45,015				41,037				40,156				31,774
Total assets		$	729,376			$	713,919			$	706,567			$	698,157			$	640,172
Interest-bearing liabilities:
Savings accounts		$	190,313			$	181,653			$	170,762			$	158,427			$	134,843
NOW accounts			69,511				59,005				57,646				46,593				39,049
Money market accounts			75,994				75,106				72,369				71,396				78,394
Term certificates			96,978				112,260				131,053				159,224				188,654
Total interest-bearing deposits			432,796				428,024				431,830				435,640				440,940
FHLBB and FRB advances			70,857				77,584				82,639				79,133				47,102
Total interest-bearing liabilities			503,653				505,608				514,469				514,773				488,042
Noninterest-bearing liabilities:
Noninterest-bearing deposits			106,929				94,540				88,394				77,947				62,718
Other noninterest-bearing liabilities			15,375				13,539				12,724				22,893				9,549
Total liabilities			625,957				613,687				615,587				615,613				560,309
Total stockholders' equity			103,419				100,232				90,980				82,544				79,863
Total liabilities and stockholders' equity		$	729,376			$	713,919			$	706,567			$	698,157			$	640,172

Randolph Bancorp, Inc.
Average Balances Trend
(Dollars in thousands)
(Unaudited)

		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2021				2020				2020				2020				2020
Interest-earning assets:
Total loans			3.71	%			3.82	%			3.82	%			3.97	%			4.23	%
Investment securities			1.71	%			1.99	%			2.13	%			2.28	%			2.58	%
Interest-earning deposits			0.08	%			0.10	%			0.06	%			0.09	%			1.21	%
Total interest-earning assets			3.35	%			3.49	%			3.40	%			3.68	%			3.98	%
Interest-bearing liabilities:
Savings accounts			0.21	%			0.31	%			0.40	%			0.59	%			0.84	%
NOW accounts			0.28	%			0.29	%			0.28	%			0.43	%			0.52	%
Money market accounts			0.28	%			0.33	%			0.41	%			0.68	%			1.01	%
Term certificates			0.98	%			1.04	%			1.35	%			1.70	%			1.89	%
Total interest-bearing deposits			0.40	%			0.50	%			0.68	%			0.99	%			1.29	%
FHLBB and FRB advances			1.31	%			1.27	%			1.21	%			1.23	%			1.72	%
Total interest-bearing liabilities			0.53	%			0.62	%			0.76	%			1.03	%			1.33	%
Interest rate spread			2.82	%			2.87	%			2.64	%			2.65	%			2.65	%
Net interest rate margin			2.96	%			3.02	%			2.81	%			2.88	%			2.91	%
Ratio of interest-earning assets to interest-bearing liabilities			136.47	%			132.30	%			129.36	%			127.82	%			124.66	%

Randolph Bancorp, Inc.
Rate/Volume Analysis
(Dollars in thousands)
(Unaudited)

		Three Months Ended
		March 31, 2021 vs. December 31, 2020
		Increase (Decrease)								Total
		Due to Changes in								Increase
		Volume				Rate				(Decrease)
Interest-earning assets:
Loans		$	135			$	(159	)		$	(24	)
Investment securities			(3	)			(40	)			(43	)
Interest-earning deposits			1				(1	)			-
Total interest-earning assets			133				(200	)			(67	)
Interest-bearing liabilities:
Savings accounts			6				(50	)			(44	)
NOW accounts			7				(2	)			5
Money market accounts			1				(9	)			(8	)
Term certificates			(39	)			(16	)			(55	)
Total interest-bearing deposits			(25	)			(77	)			(102	)
FHLBB and FRB advances			(22	)			6				(16	)
Total interest-bearing liabilities			(47	)			(71	)			(118	)
Change in net interest income		$	180			$	(129	)		$	51

		Three Months Ended
		March 31, 2021 vs. 2020
		Increase (Decrease)								Total
		Due to Changes in								Increase
		Volume				Rate				(Decrease)
Interest-earning assets:
Loans		$	623			$	(735	)		$	(112	)
Investment securities			(6	)			(126	)			(132	)
Interest-earning deposits			27				(75	)			(48	)
Total interest-earning assets			644				(936	)			(292	)
Interest-bearing liabilities:
Savings accounts			85				(271	)			(186	)
NOW accounts			28				(31	)			(3	)
Money market accounts			(6	)			(137	)			(143	)
Term certificates			(329	)			(326	)			(655	)
Total interest-bearing deposits			(222	)			(765	)			(987	)
FHLBB and FRB advances			85				(56	)			29
Total interest-bearing liabilities			(137	)			(821	)			(958	)
Change in net interest income		$	781			$	(115	)		$	666

Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)

		For the Three Months Ended March 31, 2021
		Envision Bank				Envision Mortgage				Consolidated Total
Net interest income		$	4,201			$	890			$	5,091
Provision (credit) for loan losses			(213	)			-				(213	)
Net interest income after provision for loan losses			4,414				890				5,304
Non-interest income:
Customer service fees			340				27				367
Gain on loan origination and sale activities, net (1)			-				11,674				11,674
Mortgage servicing fees, net			(94	)			873				779
Other			151				133				284
Total non-interest income			397				12,707				13,104
Non-interest expenses:
Salaries and employee benefits			1,802				6,635				8,437
Occupancy and equipment			443				301				744
Other non-interest expenses			1,087				1,683				2,770
Total non-interest expenses			3,332				8,619				11,951
Income before income taxes and elimination of inter-segment profit		$	1,479			$	4,978				6,457
Elimination of inter-segment profit											(681	)
Income before income taxes											5,776
Income tax expense											1,664
Net income										$	4,112

(1) Before elimination of inter-segment profit.

The information above was derived from the internal management reporting system used to measure performance of the segments.

Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)

		For the Three Months Ended December 31, 2020
		Envision Bank				Envision Mortgage				Consolidated Total
Net interest income		$	4,265			$	775			$	5,040
Provision for loan losses			215				-				215
Net interest income after provision for loan losses			4,050				775				4,825
Non-interest income:
Customer service fees			353				28				381
Gain on loan origination and sale activities, net (1)			-				15,062				15,062
Mortgage servicing fees, net			(100	)			375				275
Other			147				164				311
Total non-interest income			400				15,629				16,029
Non-interest expenses:
Salaries and employee benefits			2,178				6,544				8,722
Occupancy and equipment			465				685				1,150
Other non-interest expenses			1,942				1,113				3,055
Total non-interest expenses			4,585				8,342				12,927
Income (loss) before income taxes and elimination of inter-segment profit		$	(135	)		$	8,062				7,927
Elimination of inter-segment profit											(442	)
Income before income taxes											7,485
Income tax expense											2,211
Net income										$	5,274

(1) Before elimination of inter-segment profit.

Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)

		For the Three Months Ended March 31, 2020
		Envision Bank				Envision Mortgage				Consolidated Total
Net interest income		$	3,994			$	431			$	4,425
Provision for loan losses			724				-				724
Net interest income after credit for loan losses			3,270				431				3,701
Non-interest income:
Customer service fees			273				33				306
Gain on loan origination and sale activities, net (1)			-				7,472				7,472
Mortgage servicing fees, net			(87	)			(1,167	)			(1,254	)
Other			140				115				255
Total non-interest income			326				6,453				6,779
Non-interest expenses:
Salaries and employee benefits			3,098				5,028				8,126
Occupancy and equipment			404				294				698
Other non-interest expenses			1,145				990				2,135
Total non-interest expenses			4,647				6,312				10,959
Income (loss) before income taxes and elimination of inter-segment profit		$	(1,051	)		$	572				(479	)
Elimination of inter-segment profit											(328	)
Loss before income taxes											(807	)
Income tax expense											11
Net loss										$	(818	)

(1) Before elimination of inter-segment profit.

The information above was derived from the internal management reporting system used to measure performance of the segments.

Randolph Bancorp, Inc.
Reconciliation of GAAP to Non-GAAP Net Income
(in thousands)
(Unaudited)

		Quarter Ended
		March 31, 2021
		Income Before Taxes				Provision for Income Taxes				Net Income				Earnings per Common Share (diluted)
GAAP basis		$	5,776			$	1,664			$	4,112			$	0.78
Non-interest expense adjustments:
Accrued severance expenses			109				31				78				0.01
Non-GAAP basis		$	5,885			$	1,695			$	4,190			$	0.79
		Quarter Ended
		December 31, 2020
		Income Before Taxes				Provision for Income Taxes				Net Income				Earnings per Common Share (diluted)
GAAP basis		$	7,485			$	2,211			$	5,274			$	1.01
Non-interest expense adjustments:
Residential lending office closure			294				63				231				0.04
COVID-19 related expenses			69				15				54				0.01
Non-GAAP basis		$	7,848			$	2,289			$	5,559			$	1.06
		Quarter Ended
		September 30, 2020
		Income Before Taxes				Provision for Income Taxes				Net Income				Earnings per Common Share (diluted)
GAAP basis		$	12,946			$	2,661			$	10,285			$	2.01
Non-interest expense adjustments:
COVID-19 related expenses			22				4				18				-
Non-GAAP basis		$	12,968			$	2,665			$	10,303			$	2.01
		Quarter Ended
		June 30, 2020
		Income Before Taxes				Provision for Income Taxes				Net Income				Earnings per Common Share (diluted)
GAAP basis		$	5,785			$	594			$	5,191			$	1.02
Non-interest expense adjustments:
COVID-19 related expenses			189				-				189				0.04
Non-GAAP basis		$	5,974			$	594			$	5,380			$	1.06
		Quarter Ended
		March 31, 2020
		Income (Loss) Before Taxes				Provision for Income Taxes				Net Income (Loss)				Earnings (Loss) per Common Share (diluted)
GAAP basis		$	(807	)		$	11			$	(818	)		$	(0.16	)
Non-interest expense adjustments:
Retirement salary and benefits compensation			692			$	-				692				0.13
Accelerated vesting of stock-based compensation			683			$	-				683				0.13
COVID-19 related expenses			18			$	-				18				-
Non-GAAP basis		$	586			$	11			$	575			$	0.10

Randolph Bancorp, Inc.
Selected Financial Highlights
(Unaudited)

		At or for the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2021				2020				2020				2020				2020
Return on average assets: (1, 5)
GAAP			2.26	%			2.95	%			5.82	%			2.97	%			(0.51	%)
Non-GAAP (2)			2.30	%			3.11	%			5.83	%			3.08	%			0.36	%
Return on average equity: (1, 6)
GAAP			15.90	%			21.05	%			45.22	%			25.16	%			(4.10	%)
Non-GAAP (2)			16.21	%			22.18	%			45.30	%			26.07	%			2.88	%
Net interest margin			2.96	%			3.02	%			2.81	%			2.88	%			2.91	%
Non-interest income to total income:
GAAP			70.93	%			75.57	%			80.98	%			74.04	%			59.31	%
Profit percentage (9)
GAAP			31.76	%			37.33	%			54.97	%			37.59	%			(0.76	%)
Non-GAAP (2)			32.39	%			39.09	%			55.06	%			38.62	%			12.04	%
Efficiency ratio: (7)
GAAP			68.24	%			62.67	%			45.03	%			62.41	%			100.76	%
Non-GAAP (2)			67.61	%			60.91	%			44.94	%			61.38	%			87.96	%
Tier 1 capital to average assets (3)			13.81	%			13.85	%			13.28	%			11.93	%			12.17	%
Non-performing assets as a percentage of total assets (4)			1.14	%			1.01	%			1.38	%			0.47	%			0.52	%
Allowance for loan losses as a percentage of total loans (4)			1.32	%			1.39	%			1.35	%			1.22	%			1.04	%
Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4)			1.36	%			1.41	%			1.39	%			1.26	%			1.04	%
Allowance for loan losses as a percentage of non-performing assets			78.99	%			94.58	%			67.21	%			179.31	%			146.64	%
Allowance for loan losses as a percentage of non-performing loans			77.75	%			92.87	%			66.31	%			186.60	%			152.55	%
Tangible book value per share (8)		$	18.80			$	18.16			$	17.18			$	15.43			$	14.44
Outstanding shares			5,364,240				5,495,514				5,524,390				5,479,884				5,466,344

(1) Annualized for quarterly periods presented.
(2) See page 16 – Reconciliation of GAAP to Non-GAAP Net Income.
(3) Average assets calculated on a quarterly basis for all periods presented.
(4) Total loans exclude loans held for sale but includes net deferred loan costs and fees.
(5) This non-GAAP measure represents net income divided by average total assets.
(6) This non-GAAP measure represents net income divided by average stockholders’ equity.
(7) This non-GAAP measure represents total non-interest expenses divided by net interest income and non-interest income.
(8) This non-GAAP measure represents total stockholders’ equity, minus intangible assets of $31,000, $33,000, $36,000, $38,000, and $41,000 at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively, divided by outstanding shares at period end.
(9) This non-GAAP measure represents net interest income plus noninterest income less non-interest expense divided by net interest income plus non-interest income.

Randolph Bancorp, Inc.
COVID-19 Supplemental Disclosure
(Unaudited)

Loan Payment Deferrals

		As of March 31, 2021
		Commercial loans				Residential and consumer loans				Residential loans serviced for others
		(Dollars in thousands)
Balance outstanding		$	182,277			$	315,485			$	1,940,443
COVID-19 related loan payment deferrals: (1)
Loans in COVID-19-related loan payment deferral		$	6,241			$	4,777			$	11,544
Loans in deferral as a percentage of category loans			3.4	%			1.5	%			0.6	%
Loans with suspended payment		$	6,241			$	4,543			$	4,657
Loans with reduced payment			-				234				6,887
Loans which obtained a COVID-19-related payment deferral but
have since resumed payment		$	31,954			$	15,602			$	54,450
Loans reinstated (borrower paid any unpaid principal and interest)			-				2,253				6,353
Loans on a repayment plan			-				-				1,354
Loans which resumed payment but deferred principal and/or
interest payments to maturity (2)			26,197				8,713				36,811
Loans which were paid off completely			5,757				4,636				9,932

(1) Includes commercial loans that have been approved for loan payment deferral but for which documentation is closing or pending.
(2) Includes commercial loan for which maturity was extended.

Randolph Bancorp, Inc.
COVID-19 Supplemental Disclosure
(Unaudited)

COVID-19 Highly Impacted Sectors

		As of March 31, 2021
		Exposure Balance																				Exposure by Risk Weighting
																														Balance
							Real					Commercial																		with
							Estate					&																		Deferred
Industry (1)		Total					Secured					Industrial					Construction					Pass				Criticized				Payments
		(Dollars in thousands)
Group home/care facility		$	1,079				$	1,079				$	-				$	-				$	1,079			$	-			$	-
Hotels/hospitality			9,635					9,566					69					-					69				9,566				3,543
Restaurants/food service			2,713					1,554					1,159					-					2,713				-				-
Retail/shopping center			21,887					17,211					-					4,675					20,261				1,626				1,006
Other sectors (2)			11,385					10,972					113					300					9,383				2,002				1,692
Total loans in COVID-19 impacted sectors		$	46,698				$	40,382				$	1,341				$	4,975				$	33,505			$	13,194			$	6,241
Percentage of commercial loans outstanding		25.6		%			27.5		%			5.6		%			43.3		%
Commercial loans outstanding		$	182,277				$	146,930				$	23,869				$	11,478
Loan to value secured by real estate (3)							47.5		%								66.9		%

(1) This disclosure focuses on industries with balances that are significant to the portfolio at March 31, 2021 and omits industries affected by the COVID-19 pandemic (oil and gas, transportation, etc.) to which the Company has minimal or no exposure. This disclosure also excludes SBA PPP Loans, given their government guarantee.
(2) Includes customers operating in various sectors which have been impacted by COVID-19.
(3) Loan to value secured by real estate equals the exposure balance divided by the most recent appraised value.

For More Information, Contact:
William M. Parent, President and Chief
Executive Officer (617-925-1955)

FAQ

What were Randolph Bancorp's earnings for Q1 2021?

Randolph Bancorp reported net income of $4.1 million for Q1 2021.

How much did total assets grow in Q1 2021 for RNDB?

Total assets increased by $17.1 million, or 2.4%, to $738.2 million.

What was the decline in non-interest income for RNDB in Q1 2021?

Non-interest income fell by $3.2 million, or 20.3%, compared to Q4 2020.

What was the net interest margin for Randolph Bancorp in Q1 2021?

The net interest margin decreased to 2.96% in Q1 2021.

How did Randolph Bancorp's net income compare to the previous year?

Net income increased from a net loss of $0.8 million in Q1 2020 to $4.1 million in Q1 2021.