Randolph Bancorp, Inc. Announces Third Quarter 2021 Financial Results, Initiates Quarterly Cash Dividend, and Announces Share Buyback Program

Rhea-AI Summary

Randolph Bancorp, Inc. (RNDB) reported net income of $3.1 million ($0.64/share) for Q3 2021, a significant increase from $1.6 million in Q2 2021 but down from $10.3 million in Q3 2020. Non-GAAP net income was $3.4 million, excluding one-time expenses. Total assets increased to $751.1 million, driven by a $23.6 million loan growth. The company declared a quarterly dividend of $0.15/share and announced a share repurchase program for 510,000 shares. However, non-interest income fell 59% year-over-year due to lower gains on loan origination.

Positive

• Net interest income rose 14.9% to $6.0 million in Q3 2021.
• Total loans increased by 4.3% to $570 million in Q3 2021.
• The company implemented a $0.15 quarterly dividend reflecting improved operating performance.

Negative

• Net income for the nine months ended September 30, 2021 decreased by 40% year-over-year.
• Non-interest income declined by 59% compared to Q3 2020.

QUINCY, Mass., Oct. 26, 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 $3.1 million, or $0.64 per basic share and $0.62 per diluted share, for the three months ended September 30, 2021 compared to net income of $1.6 million, or $0.32 per basic and $0.31 per diluted share, for the three months ended June 30, 2021 and net income of $10.3 million, or $2.01 per basic and diluted share, for the three months ended September 30, 2020. Excluding one-time events of $139,000 in severance expenses and $190,000 in other outsourcing expenses, net income on a non-GAAP basis was $3.4 million, or $0.67 per diluted share, for the three months ended September 30, 2021. Excluding one-time events of $145,000 in severance expenses, $71,000 in other outsourcing expenses, and $29,000 in losses on disposals of fixed assets, net income on a non-GAAP basis was $1.8 million, or $0.34 per diluted share, for the three months ended June 30, 2021. Excluding $22,000 of operating expenses related to addressing the COVID-19 pandemic, net income on a non-GAAP basis for the three months ended September 30, 2020 was $10.3 million, or $2.01 per diluted share.

For the nine months ended September 30, 2021, net income was $8.8 million, or $1.78 per basic share and $1.71 per diluted share, compared to net income of $14.7 million, or $2.86 per basic and diluted share, for the nine months ended September 30, 2020. Net income on a non-GAAP basis, excluding certain nonrecurring items, was $9.3 million, or $1.80 per diluted share, for the nine months ended September 30, 2021, compared to net income on a non-GAAP basis, excluding other certain nonrecurring items, of $16.0 million, or $3.12 per diluted share, for the nine months ended September 30, 2020.

The Company announced that its Board of Directors declared a regular quarterly dividend of $0.15 per common share. The dividend will be payable on or about November 23, 2021, to shareholders of record as of November 9, 2021.

Additionally, the Company announced today a new share repurchase program to purchase up to 510,000 shares of its common stock, representing approximately 10.0% of the Company’s outstanding common stock. Repurchases under this program may be made in open market transactions. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The repurchase program does not obligate the Company to purchase any particular number of shares. The repurchase program will expire on October 29, 2022, and may be suspended or terminated at any time.

At September 30, 2021, total assets amounted to $751.1 million, compared to $744.1 million at June 30, 2021, an increase of $7.0 million, or 0.9%. Total loans increased by $23.6 million, or 4.3%, to $570.0 million at September 30, 2021 from $546.4 million at June 30, 2021, and loans held for sale increased by $1.1 million to $75.4 million at September 30, 2021 from $74.3 million at June 30, 2021. Compared to September 30, 2020, total assets grew $28.1 million, or 3.9% from $723.0 million. The growth from the prior year period was driven by an increase in total loans of $80.0 million, or 16.3%, partially offset by a decrease in loans held for sale of $12.4 million and a decrease in cash and cash equivalents of $36.3 million.

William M. Parent, President and Chief Executive Officer, stated, “The third quarter was a strong quarter for our Company, as our local economy continued to progress to more normal post pandemic operations. Strong loan growth, net interest margin expansion, net interest income growth, improved credit metrics and mortgage banking income drove strong earnings contributions across our organization. Our decision to initiate a regular quarterly dividend reflects the continued improvement in our operating performance and our optimism for what lies ahead for our Company. This dividend also complements our share buyback program, which, along with continued organic growth, gives us versatility to deploy our excess capital in a balanced and effective manner.”

Third Quarter Operating Results
Net interest income increased by $777,000, or 14.9%, to $6.0 million for the three months ended September 30, 2021 from $5.2 million for the three months ended June 30, 2021. This increase was primarily due to $318,000 of fee accretion earned from the Small Business Administration’s Paycheck Protection Program (“SBA PPP”), commercial real estate loan growth, and a decrease in the rates paid on term certificates of deposit. The yield earned on interest-earning assets increased by 33 basis points from the prior quarter, and the rate paid on interest-bearing liabilities improved by 6 basis points from the prior quarter. Accordingly, the net interest margin increased by 38 basis points, to 3.38% in the third quarter from 3.00% in the second quarter.

Net interest income increased by $1.3 million, or 28.0%, to $6.0 million for the three months ended September 30, 2021 from $4.7 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin increased by 57 basis points to 3.38%, from 2.81%. The improvement reflects average loan growth of $82.1 million from the prior year quarter, while the cost of interest-bearing liabilities decreased by 38 basis points, and the yield on interest-earning assets increased by 25 basis points between periods.

The Company recognized a credit for loan losses of $90,000 for the quarter ended September 30, 2021, driven by changes in the qualitative factors related to the impact of the COVID-19 pandemic used in the Company’s calculation, along with improvements in overall credit quality trends, which were partially offset by total loan growth of $23.6 million from the prior quarter. The allowance for loan losses was 1.13%, 1.19% and 1.34% of total loans at September 30, 2021, June 30, 2021 and September 30, 2020, respectively, and was 427.7%, 101.9% and 67.2% of non-performing assets at September 30, 2021, June 30, 2021 and September 30, 2020, respectively.

Non-interest income increased $1.3 million, or 19.6%, to $8.1 million for the quarter ended September 30, 2021 from $6.8 million in the quarter ended June 30, 2021, due to an increase of $1.5 million in the net gain on loan origination and sale activities, partially offset by a decrease in net mortgage servicing fees of $107,000. Sold mortgages totaled $260.5 million in the third quarter of 2021, compared to $342.8 million in the second quarter of 2021. The third quarter of 2021 ended with a mortgage pipeline of $158.1 million, compared to a pipeline of $139.7 million at the end of the second quarter of 2021. The stabilization of the mortgage banking pipeline was a key contributor to the improvement in the gain on loan origination and sale activities from the prior quarter. Mortgage servicing fees decreased $107,000, or 28.1%, to $274,000 for the third quarter of 2021 from $381,000 in the second quarter of 2021 as a result of expenses paid to the bank’s new mortgage sub-servicer of $252,000 for the last two months of the quarter, partially offset by a positive fair value adjustment of $38,000 in the third quarter of 2021, compared to a provision of $65,000 for the second quarter of 2021, based on an increase in mortgage interest rates, and a decrease in the monthly amortization of mortgage servicing rights from the prior quarter, which reflects slower prepayment speeds.

Non-interest income decreased $11.7 million, or 59.0%, to $8.1 million for the quarter ended September 30, 2021 from $19.9 million for the quarter ended September 30, 2020, principally due to a decrease of $10.9 million in the net gain on loan origination and sale activities, and a decrease of $906,000 in net mortgage servicing fees. Sold mortgage loans totaled $260.5 million in the third quarter of 2021, compared to sold mortgage loans of $410.4 million during the third quarter of 2020. The third quarter of 2021 ended with a mortgage pipeline of $158.1 million, compared to a pipeline of $418.9 million at the end of the third quarter of 2020. Mortgage servicing fees decreased $906,000 in the quarter ended September 30, 2021, principally due to a positive valuation adjustment of mortgage servicing rights of $1.1 million in the quarter ended September 30, 2020.

Non-interest expenses decreased $768,000, or 7.2%, to $9.9 million in the quarter ended September 30, 2021 from $10.6 million in the quarter ended June 30, 2021. The decrease was due to a decrease in salaries and employee benefits expense of $929,000, or 12.7%, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production and by reductions in headcount related to the bank’s outsourcing of mortgage loan servicing, partially offset by $190,000 of one-time conversion expenses related to the new mortgage loan sub-servicer included in other non-interest expenses.

Non-interest expenses decreased $1.2 million to $9.9 million in the quarter ended September 30, 2021 from $11.1 million in the quarter ended September 30, 2020. The decrease is principally due to a decrease in salaries and employee benefits of $1.5 million, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production and reduced headcount, partially offset by a $253,000 increase in other non-interest expenses, which included one-time conversion expenses for the bank’s new mortgage loan sub-servicer, as well as increases related to fees and stock-based compensation paid to new members of the Company’s Board of Directors.

The income tax expense was $1.2 million for the three months ended September 30, 2021 compared to income tax benefit of $162,000 for the three months ended June 30, 2021 and income tax expense of $2.7 million for the three months ended September 30, 2020. During the three months ended June 30, 2021, the Company reversed a valuation allowance on its charitable contribution carryforwards totaling $531,000. The remaining income tax expense for 2021 is expected to reflect an effective tax rate of 28.5%.

Year-to-Date Operating Results
Net interest income increased by $2.4 million, or 17.6%, to $16.3 million, for the nine months ended September 30, 2021 from $13.8 million for the nine months ended September 30, 2020. The change reflects the shortening and downward pricing of deposit liabilities, and to a lesser extent, loan growth. The composition of our deposit base improved as the average balance of savings and NOW accounts for the nine months ended September 30, 2021 increased $35.9 million, or 23.2%, and $12.9 million, or 23.7%, respectively, from the nine months ended September 30, 2020, while the average balance of our term certificates decreased $54.4 million, or 34.1%, from the prior year. The activity resulted in a 58 basis point decrease in the cost of interest-bearing liabilities. Average loan growth of $53.7 million, or 9.7% from the prior year more than offset a 23 basis point decline in loan yields.

The Company recognized a credit for loan losses of $330,000 for the nine months ended September 30, 2021 compared to a provision of $2.3 million in the prior year period. At September 30, 2021, improvements to qualitative factors related to the impact of the COVID-19 pandemic, the economic outlook, and credit quality trends all helped to generate the credit for loan losses, partially offset by provisions for loan growth.

Non-interest income decreased $12.4 million, or 31.2%, to $27.4 million for the nine months ended September 30, 2021 from $39.8 million in the nine months ended September 30, 2020, principally due to a decrease of $15.7 million in the net gain on loan origination and sale activities. Mortgage loans sold were $1.1 billion in the first nine months of 2021, unchanged from the first nine months of 2020. Net gain on loan origination and sale activities decreased, as a result of both lower loan sale margins and the impact of a shrinking mortgage banking pipeline during the nine months ended September 30, 2021, compared to an increasing mortgage banking pipeline during the nine months ended September 30, 2020. Mortgage servicing fees increased $2.9 million in the first nine months of 2021 to $1.4 million from a loss of $1.4 million in the first nine months of 2020, primarily due to positive fair value adjustments of $395,000 in the first nine months of 2021 and impairment charges of $2.0 million in the first nine months of 2020.

Non-interest expenses decreased $952,000, or 2.9%, to $32.4 million for the nine months ended September 30, 2021 from $33.4 million for the nine months ended September 30, 2020. Non-interest expenses in the first nine months of 2020 included one-time charges of $1,375,000 related to the retirement of senior executives as well as $229,000 of COVID-19 pandemic-related expenses. Occupancy and equipment expenses decreased $316,000 in the first nine months of 2021 over the prior year period, as the Company migrated to a hybrid work environment and reduced its overall real estate footprint by closing six loan production offices, a lending center office, and by reducing the office space for the bank’s main administrative office since the prior year, and a reduction in COVID-19 pandemic related spending. These decreases were partially offset by increases in other non-interest expenses of $1.1 million, related to one-time conversion expenses for the bank’s new mortgage sub-servicer, increases to board fees and stock-based compensation paid to new members of the bank’s Board of Directors, and the bank’s provision for unfunded commitments for commercial real estate and commercial construction originations.

Income tax expenses decreased to $2.7 million for the nine months ended September 30, 2021 from $3.3 million for the nine months ended September 30, 2020. The current period included a reversal of a charitable contribution carryforward valuation allowance, and the prior period included the utilization of net operating loss carryforwards.

Balance Sheet
At September 30, 2021, total assets amounted to $751.1 million, compared to $744.1 million at June 30, 2021, an increase of $7.0 million, or 0.9%. A $24.0 million increase in net loans from the prior quarter was partially offset by a $22.0 million decrease in cash and cash equivalents. Net loan growth of 4.4% was driven by commercial real estate growth of $17.4 million, or 10.4%, and home equity and construction loan growth of $5.6 million and $5.4 million, respectively. Deposits increased by $1.4 million in the quarter, including an increase of $9.4 million in non-interest bearing deposits. In addition, the Company increased borrowings by $12.9 million in the quarter.

Total assets at September 30, 2021 increased $28.1 million, or 3.9% from $723.0 million at September 30, 2020. Contributing to asset growth was a $80.1 million increase in net loans to $564.6 million at September 30, 2021 from $484.5 million at September 30, 2020. Cash and cash equivalents decreased by $36.2 million, or 73.8%, to $12.9 million at September 30, 2021 from $49.1 million at September 30, 2020, mainly to fund growth in net loans. Commercial real estate loans increased by $43.2 million, or 30.5%, as we focus on diversifying our loan mix. The increase in total assets from the prior year quarter was also funded by continued deposit growth. Retail deposits totaled $523.3 million at September 30, 2021, increasing by $38.3 million, or 7.9%, from $485.0 million at September 30, 2020. Driving the growth in retail deposits was customers’ receipt of government stimulus and our focus on deposit gathering. Federal Home Loan Bank of Boston (“FHLBB”) advances decreased by $4.0 million to $62.9 million at September 30, 2021, from $66.9 million at September 30, 2020, and Federal Reserve Bank advances decreased by $15.3 million.

Total stockholders’ equity was $100.6 million at September 30, 2021 compared to $100.7 million at June 30, 2021. The decrease of $113,000 reflects share repurchases during the period of $3.4 million, partially offset by net income of $3.1 million.

Total stockholders’ equity was $100.6 million at September 30, 2021 compared to $94.9 million at September 30, 2020. The increase of $5.7 million relates mainly to net income from the previous twelve months of $14.1 million, partially offset by share repurchases of $8.8 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 SBA PPP, for which we funded $26.2 million of SBA PPP Loans through September 30, 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 Highly Impacted Sectors for statistics on loan payment deferrals and the commercial loan sectors we believe could continue to 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 Quincy, 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. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “assume”, “outlook”, “will”, “should”, and other expressions that predict or indicate future events and trends and which do not relate to historical matters. 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 the Company’s 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 SBA PPP 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 SEC. 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, non-interest income to total income 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
		September 30,				June 30,				September 30,				Sep 2021 vs.				Sep 2021 vs.
		2021				2021				2020				Jun 2021				Sep 2020
Assets
Cash and cash equivalents		$	12,876			$	34,876			$	49,091				(63.1	)%			(73.8	)%
Securities available for sale, at fair value			51,725				50,212				55,551				3.0	%			(6.9	)%
Loans held for sale, at fair value			75,400				74,277				87,805				1.5	%			(14.1	)%
Loans:
1-4 family residential			265,561				263,992				235,955				0.6	%			12.5	%
Home equity			56,124				50,555				48,097				11.0	%			16.7	%
Commercial real estate			185,100				167,691				141,862				10.4	%			30.5	%
Construction			34,479				29,140				32,064				18.3	%			7.5	%
Total real estate loans			541,264				511,378				457,978				5.8	%			18.2	%
Commercial and industrial			19,896				25,826				20,388				(23.0	)%			(2.4	)%
Consumer			8,860				9,194				11,696				(3.6	)%			(24.2	)%
Total loans			570,020				546,398				490,062				4.3	%			16.3	%
Allowance for loan losses			(6,432	)			(6,523	)			(6,597	)			(1.4	)%			(2.5	)%
Net deferred loan costs and fees, and purchase premiums			1,031				785				1,083				31.3	%			(4.8	)%
Loans, net			564,619				540,660				484,548				4.4	%			16.5	%
Federal Home Loan Bank of Boston stock, at cost			3,239				2,855				3,797				13.5	%			(14.7	)%
Accrued interest receivable			1,763				1,523				1,654				15.8	%			6.6	%
Mortgage servicing rights, net			15,402				15,375				10,944				0.2	%			40.7	%
Premises and equipment, net			6,462				5,115				5,133				26.3	%			25.9	%
Bank-owned life insurance			8,744				8,703				8,577				0.5	%			1.9	%
Foreclosed real estate, net			-				-				132			-		%			(100.0	)%
Other assets			10,867				10,546				15,736				3.0	%			(30.9	)%
Total assets		$	751,097			$	744,142			$	722,968				0.9	%			3.9	%
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing		$	134,058			$	124,683			$	93,352				7.5	%			43.6	%
Savings accounts			188,346				190,584				175,316				(1.2	)%			7.4	%
NOW accounts			53,804				51,059				47,032				5.4	%			14.4	%
Money market accounts			73,562				73,967				74,874				(0.5	)%			(1.8	)%
Term certificates			73,519				74,631				94,438				(1.5	)%			(22.2	)%
Interest bearing brokered			50,116				57,059				37,273				(12.2	)%			34.5	%
Total deposits			573,405				571,983				522,285				0.2	%			9.8	%
Federal Reserve Bank advances			-				-				15,318			-		%			(100.0	)%
Federal Home Loan Bank of Boston advances			62,900				50,016				66,903				25.8	%			(6.0	)%
Mortgagors' escrow accounts			1,905				1,783				1,959				6.8	%			(2.8	)%
Post-employment benefit obligations			2,182				2,226				2,289				(2.0	)%			(4.7	)%
Other liabilities			10,108				17,424				19,276				(42.0	)%			(47.6	)%
Total liabilities			650,500				643,432				628,030				1.1	%			3.6	%
Stockholders' Equity:
Common stock			50				52				55				(3.8	)%			(9.1	)%
Additional paid-in capital			43,574				46,740				51,201				(6.8	)%			(14.9	)%
Retained earnings			60,504				57,378				46,415				5.4	%			30.4	%
ESOP-Unearned compensation			(3,615	)			(3,662	)			(3,803	)			(1.3	)%			(4.9	)%
Accumulated other comprehensive income, net of tax			84				202				1,070				(58.4	)%			(92.1	)%
Total stockholders' equity			100,597				100,710				94,938				(0.1	)%			6.0	%
Total liabilities and stockholders' equity		$	751,097			$	744,142			$	722,968				0.9	%			3.9	%

Randolph Bancorp, Inc. Consolidated Balance Sheet Trend (Dollars in thousands) (Unaudited)
		September 30,				June 30,				March 31,				December 31,				September 30,
		2021				2021				2021				2020				2020
Assets
Cash and cash equivalents		$	12,876			$	34,876			$	54,950			$	13,774			$	49,091
Securities available for sale, at fair value			51,725				50,212				54,148				55,366				55,551
Loans held for sale, at fair value			75,400				74,277				93,176				119,112				87,805
Loans:
1-4 family residential			265,561				263,992				239,190				235,648				235,955
Home equity			56,124				50,555				49,073				48,166				48,097
Commercial real estate			185,100				167,691				146,930				143,893				141,862
Construction			34,479				29,140				29,975				31,050				32,064
Total real estate loans			541,264				511,378				465,168				458,757				457,978
Commercial and industrial			19,896				25,826				23,869				20,259				20,388
Consumer			8,860				9,194				8,724				10,289				11,696
Total loans			570,020				546,398				497,761				489,305				490,062
Allowance for loan losses			(6,432	)			(6,523	)			(6,563	)			(6,784	)			(6,597	)
Net deferred loan costs and fees, and purchase premiums			1,031				785				785				1,123				1,083
Loans, net			564,619				540,660				491,983				483,644				484,548
Federal Home Loan Bank of Boston stock, at cost			3,239				2,855				3,576				3,576				3,797
Accrued interest receivable			1,763				1,523				1,501				1,562				1,654
Mortgage servicing rights, net			15,402				15,375				14,744				12,377				10,944
Premises and equipment, net			6,462				5,115				4,709				4,781				5,133
Bank-owned life insurance			8,744				8,703				8,662				8,622				8,577
Foreclosed real estate, net			-				-				132				132				132
Other assets			10,867				10,546				10,607				18,126				15,736
Total assets		$	751,097			$	744,142			$	738,188			$	721,072			$	722,968
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing		$	134,058			$	124,683			$	118,623			$	96,731			$	93,352
Savings accounts			188,346				190,584				192,712				185,481				175,316
NOW accounts			53,804				51,059				62,772				53,530				47,032
Money market accounts			73,562				73,967				78,236				77,393				74,874
Term certificates			73,519				74,631				75,690				83,444				94,438
Interest bearing brokered			50,116				57,059				32,225				31,728				37,273
Total deposits			573,405				571,983				560,258				528,307				522,285
Federal Reserve Bank advances			-				-				-				11,431				15,318
Federal Home Loan Bank of Boston advances			62,900				50,016				60,024				61,895				66,903
Mortgagors' escrow accounts			1,905				1,783				1,924				2,338				1,959
Post-employment benefit obligations			2,182				2,226				2,235				2,382				2,289
Other liabilities			10,108				17,424				12,888				14,900				19,276
Total liabilities			650,500				643,432				637,329				621,253				628,030
Stockholders' Equity:
Common stock			50				52				53				54				55
Additional paid-in capital			43,574				46,740				48,613				50,937				51,201
Retained earnings			60,504				57,378				55,801				51,689				46,415
ESOP-Unearned compensation			(3,615	)			(3,662	)			(3,709	)			(3,756	)			(3,803	)
Accumulated other comprehensive income, net of tax			84				202				101				895				1,070
Total stockholders' equity			100,597				100,710				100,859				99,819				94,938
Total liabilities and stockholders' equity		$	751,097			$	744,142			$	738,188			$	721,072			$	722,968

Randolph Bancorp, Inc. Consolidated Statements of Operations (Dollars in thousands except per share amounts) (Unaudited)
		Three Months Ended												% Change
		September 30,				June 30,				September 30,				Sep 2021 vs.					Sep 2021 vs.
		2021				2021				2020				Jun 2021					Sep 2020
Interest and dividend income:
Loans		$	6,226			$	5,505			$	5,337				13.1	%				16.7	%
Other interest and dividend income			227				237				311				(4.2	)%				(27.0	)%
Total interest and dividend income			6,453				5,742				5,648				12.4	%				14.3	%
Interest expense			477				543				979				(12.2	)%				(51.3	)%
Net interest income			5,976				5,199				4,669				14.9	%				28.0	%
Provision (credit) for loan losses			(90	)			(27	)			546				233.3	%				(116.5	)%
Net interest income after provision (credit) for loan losses			6,066				5,226				4,123				16.1	%				47.1	%
Non-interest income:
Customer service fees			410				419				330				(2.1	)%				24.2	%
Gain on loan origination and sale activities, net			7,229				5,740				18,102				25.9	%				(60.1	)%
Mortgage servicing fees, net			274				381				1,180				(28.1	)%				(76.8	)%
Other			236				276				262				(14.5	)%				(9.9	)%
Total non-interest income			8,149				6,816				19,874				19.6	%				(59.0	)%
Non-interest expenses:
Salaries and employee benefits			6,381				7,310				7,911				(12.7	)%				(19.3	)%
Occupancy and equipment			714				621				859				15.0	%				(16.9	)%
Professional fees			490				323				253				51.7	%				93.7	%
Marketing			134				200				154				(33.0	)%				(13.0	)%
FDIC insurance			54				54				41				0.0	%				31.7	%
Other non-interest expenses			2,086				2,119				1,833				(1.6	)%				13.8	%
Total non-interest expenses			9,859				10,627				11,051				(7.2	)%				(10.8	)%
Income before income taxes			4,356				1,415				12,946				207.8	%				(66.4	)%
Income tax expense (benefit)			1,230				(162	)			2,661				(859.3	)%				(53.8	)%
Net income		$	3,126			$	1,577			$	10,285				98.2	%				(69.6	)%
Net income per share:
Basic		$	0.64			$	0.32			$	2.01
Diluted		$	0.62			$	0.31			$	2.01
Weighted average shares outstanding:
Basic			4,869,155				4,921,182				5,120,367
Diluted			5,074,676				5,135,582				5,120,367

Randolph Bancorp, Inc. Consolidated Statements of Operations (Dollars in thousands except per share amounts) (Unaudited)
		Year to Date								% Change
		September 30,				September 30,				Sep 2021 vs.
		2021				2020				Sep 2020
Interest and dividend income:
Loans		$	17,239			$	16,680				3.4	%
Other interest and dividend income			717				1,080				(33.6	)%
Total interest and dividend income			17,956				17,760				1.1	%
Interest expense			1,690				3,933				(57.0	)%
Net interest income			16,266				13,827				17.6	%
Provision (credit) for loan losses			(330	)			2,338				(114.1	)%
Net interest income after provision (credit) for loan losses			16,596				11,489				44.5	%
Non-interest income:
Customer service fees			1,196				902				32.6	%
Gain on loan origination and sale activities, net			23,962				39,616				(39.5	)%
Mortgage servicing fees, net			1,434				(1,428	)			(200.4	)%
Other			796				734				8.4	%
Total non-interest income			27,388				39,824				(31.2	)%
Non-interest expenses:
Salaries and employee benefits			22,128				24,439				(9.5	)%
Occupancy and equipment			2,079				2,395				(13.2	)%
Professional fees			1,374				888				54.7	%
Marketing			504				458				10.0	%
FDIC insurance			162				136				19.1	%
Other non-interest expenses			6,190				5,073				22.0	%
Total non-interest expenses			32,437				33,389				(2.9	)%
Income before income taxes			11,547				17,924				(35.6	)%
Income tax expense			2,732				3,266				(16.4	)%
Net income		$	8,815			$	14,658				(39.9	)%
Net income per share:
Basic		$	1.78			$	2.86
Diluted		$	1.71			$	2.86
Weighted average shares outstanding:
Basic			4,948,137				5,123,705
Diluted			5,153,548				5,126,077

Randolph Bancorp, Inc. Consolidated Statements of Operations Trend (Dollars in thousands except per share amounts) (Unaudited)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2021				2021				2021				2020				2020
Interest and dividend income:
Loans		$	6,226			$	5,505			$	5,508			$	5,532			$	5,337
Other interest and dividend income			227				237				253				296				311
Total interest and dividend income			6,453				5,742				5,761				5,828				5,648
Interest expense			477				543				670				788				979
Net interest income			5,976				5,199				5,091				5,040				4,669
Provision (credit) for loan losses			(90	)			(27	)			(213	)			215				546
Net interest income after provision (credit) for loan losses			6,066				5,226				5,304				4,825				4,123
Non-interest income:
Customer service fees			410				419				367				381				330
Gain on loan origination and sale activities, net			7,229				5,740				10,993				14,620				18,102
Mortgage servicing fees, net			274				381				779				275				1,180
Other			236				276				284				311				262
Total non-interest income			8,149				6,816				12,423				15,587				19,874
Non-interest expenses:
Salaries and employee benefits			6,381				7,310				8,437				8,722				7,911
Occupancy and equipment			714				621				744				1,150				859
Professional fees			490				323				561				389				253
Marketing			134				200				170				231				154
FDIC insurance			54				54				54				51				41
Other non-interest expenses			2,086				2,119				1,985				2,384				1,833
Total non-interest expenses			9,859				10,627				11,951				12,927				11,051
Income before income taxes			4,356				1,415				5,776				7,485				12,946
Income tax expense (benefit)			1,230				(162	)			1,664				2,211				2,661
Net income		$	3,126			$	1,577			$	4,112			$	5,274			$	10,285
Net income per share:
Basic		$	0.64			$	0.32			$	0.81			$	1.03			$	2.01
Diluted		$	0.62			$	0.31			$	0.78			$	1.01			$	2.01
Weighted average shares outstanding:
Basic			4,869,155				4,921,182				5,056,165				5,135,069				5,120,367
Diluted			5,074,676				5,135,582				5,254,907				5,244,414				5,120,367

Randolph Bancorp, Inc. Average Balances/Yields (Dollars in thousands) (Unaudited)
	Three Months Ended
	September 30, 2021												June 30, 2021												September 30, 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)	$	641,443			$	6,226				3.88	%		$	592,750			$	5,505				3.71	%		$	559,370			$	5,337				3.82	%
Investment securities(2) (3)		54,229				224				1.65	%			55,376				229				1.65	%			57,211				305				2.13	%
Interest-earning deposits		11,002				4				0.15	%			43,888				8				0.07	%			48,949				7				0.06	%
Total interest-earning assets		706,674				6,454				3.65	%			692,014				5,742				3.32	%			665,530				5,649				3.40	%
Noninterest-earning assets		44,614												40,257												41,037
Total assets	$	751,288											$	732,271											$	706,567
Interest-bearing liabilities:
Savings accounts		189,254				76				0.16	%			192,434				89				0.18	%			170,762				172				0.40	%
NOW accounts		61,951				23				0.15	%			69,730				38				0.22	%			57,646				41				0.28	%
Money market accounts		73,662				41				0.22	%			72,469				43				0.24	%			72,369				75				0.41	%
Term certificates		113,787				160				0.56	%			104,604				176				0.67	%			131,053				442				1.35	%
Total interest-bearing deposits		438,654				300				0.27	%			439,237				346				0.32	%			431,830				730				0.68	%
FHLBB and FRB advances		64,047				178				1.11	%			51,502				198				1.54	%			82,639				249				1.21	%
Total interest-bearing liabilities		502,701				478				0.38	%			490,739				544				0.44	%			514,469				979				0.76	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		126,165												124,656												88,394
Other noninterest-bearing liabilities		19,021												13,606												12,724
Total liabilities		647,887												629,001												615,587
Total stockholders' equity		103,401												103,270												90,980
Total liabilities and stockholders' equity	$	751,288											$	732,271											$	706,567
Net interest income					$	5,976											$	5,198											$	4,670
Interest rate spread(4)										3.27	%											2.88	%											2.64	%
Net interest-earning assets(5)	$	203,973											$	201,275											$	151,061
Net interest margin(6)										3.38	%											3.00	%											2.81	%
Ratio of interest-earning assets to interest-bearing liabilities		140.58	%											141.01	%											129.36	%

(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 $1,000 for the three months ended September 30, 2021, June 30, 2021 and September 30, 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/Yields (Dollars in thousands) (Unaudited)
	Year to Date
	September 30, 2021												September 30, 2020
	Average				Interest				Average				Average				Interest				Average
	Outstanding				Earned/				Yield/				Outstanding				Earned/				Yield/
(Dollars in thousands)	Balance				Paid				Rate				Balance				Paid				Rate
Interest-earning assets:
Loans (1)	$	609,579			$	17,239				3.77	%		$	555,838			$	16,680				4.00	%
Investment securities(2) (3)		55,795				701				1.68	%			58,201				1,016				2.33	%
Interest-earning deposits		30,037				19				0.08	%			30,177				68				0.30	%
Total interest-earning assets		695,411				17,959				3.44	%			644,216				17,764				3.68	%
Noninterest-earning assets		42,312												37,509
Total assets	$	737,723											$	681,725
Interest-bearing liabilities:
Savings accounts		190,663				261				0.18	%			154,736				689				0.59	%
NOW accounts		67,036				109				0.22	%			54,185				142				0.35	%
Money market accounts		74,033				138				0.25	%			70,712				394				0.74	%
Term certificates		105,184				574				0.73	%			159,540				2,012				1.68	%
Total interest-bearing deposits		436,916				1,082				0.33	%			439,173				3,237				0.98	%
FHLBB and FRB advances		62,110				608				1.31	%			69,672				696				1.33	%
Total interest-bearing liabilities		499,026				1,690				0.45	%			508,845				3,933				1.03	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		119,320												76,397
Other noninterest-bearing liabilities		16,014												11,996
Total liabilities		634,360												597,238
Total stockholders' equity		103,363												84,487
Total liabilities and stockholders' equity	$	737,723											$	681,725
Net interest income					$	16,269											$	13,831
Interest rate spread(4)										2.99	%											2.65	%
Net interest-earning assets(5)	$	196,385											$	135,371
Net interest margin(6)										3.12	%											2.86	%
Ratio of interest-earning assets to interest-bearing liabilities		139.35	%											126.60	%

(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 $3,000 and $4,000 for the nine months ended September 30, 2021 and 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
		September 30,				June 30,				March 31,				December 31,				September 30,
		2021				2021				2021				2020				2020
Interest-earning assets:
Total loans		$	641,443			$	592,750			$	594,021			$	580,002			$	559,370
Investment securities			54,229				55,376				57,818				58,329				57,211
Interest-earning deposits			11,002				43,888				35,492				30,573				48,949
Total interest-earning assets			706,674				692,014				687,331				668,904				665,530
Non-interest earning assets			44,614				40,257				42,045				45,015				41,037
Total assets		$	751,288			$	732,271			$	729,376			$	713,919			$	706,567
Interest-bearing liabilities:
Savings accounts		$	189,254			$	192,434			$	190,313			$	181,653			$	170,762
NOW accounts			61,951				69,730				69,511				59,005				57,646
Money market accounts			73,662				72,469				75,994				75,106				72,369
Term certificates			113,787				104,604				96,978				112,260				131,053
Total interest-bearing deposits			438,654				439,237				432,796				428,024				431,830
FHLBB and FRB advances			64,047				51,502				70,857				77,584				82,639
Total interest-bearing liabilities			502,701				490,739				503,653				505,608				514,469
Noninterest-bearing liabilities:
Noninterest-bearing deposits			126,165				124,656				106,929				94,540				88,394
Other noninterest-bearing liabilities			19,021				13,606				15,375				13,539				12,724
Total liabilities			647,887				629,001				625,957				613,687				615,587
Total stockholders' equity			103,401				103,270				103,419				100,232				90,980
Total liabilities and stockholders' equity		$	751,288			$	732,271			$	729,376			$	713,919			$	706,567

Randolph Bancorp, Inc. Average Yield Trend (Dollars in thousands) (Unaudited)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2021				2021				2021				2020				2020
Interest-earning assets:
Total loans			3.88	%			3.71	%			3.71	%			3.82	%			3.82	%
Investment securities			1.65	%			1.65	%			1.71	%			1.99	%			2.13	%
Interest-earning deposits			0.15	%			0.07	%			0.08	%			0.10	%			0.06	%
Total interest-earning assets			3.65	%			3.32	%			3.35	%			3.49	%			3.40	%
Interest-bearing liabilities:
Savings accounts			0.16	%			0.18	%			0.21	%			0.31	%			0.40	%
NOW accounts			0.15	%			0.22	%			0.28	%			0.29	%			0.28	%
Money market accounts			0.22	%			0.24	%			0.28	%			0.33	%			0.41	%
Term certificates			0.56	%			0.67	%			0.98	%			1.04	%			1.35	%
Total interest-bearing deposits			0.27	%			0.32	%			0.40	%			0.50	%			0.68	%
FHLBB and FRB advances			1.11	%			1.54	%			1.31	%			1.27	%			1.21	%
Total interest-bearing liabilities			0.38	%			0.44	%			0.53	%			0.62	%			0.76	%
Interest rate spread			3.27	%			2.88	%			2.82	%			2.87	%			2.64	%
Net interest rate margin			3.38	%			3.00	%			2.96	%			3.02	%			2.81	%
Ratio of interest-earning assets to interest-bearing liabilities			140.58	%			141.01	%			136.47	%			132.30	%			129.36	%

Randolph Bancorp, Inc. Rate/Volume Analysis (Dollars in thousands) (Unaudited)
		Three Months Ended
		September 30, 2021 vs. June 30, 2021
		Increase (Decrease)								Total
		Due to Changes in								Increase
		Volume				Rate				(Decrease)
Interest-earning assets:
Loans		$	463			$	258			$	721
Investment securities			(5	)			-				(5	)
Interest-earning deposits			(9	)			4				(5	)
Total interest-earning assets			449				262				711
Interest-bearing liabilities:
Savings accounts			(2	)			(11	)			(13	)
NOW accounts			(4	)			(11	)			(15	)
Money market accounts			1				(3	)			(2	)
Term certificates			14				(30	)			(16	)
Total interest-bearing deposits			9				(55	)			(46	)
FHLBB and FRB advances			42				(62	)			(20	)
Total interest-bearing liabilities			51				(117	)			(66	)
Change in net interest income		$	398			$	379			$	777

		Three Months Ended
		September 30, 2021 vs. 2020
		Increase (Decrease)								Total
		Due to Changes in								Increase
		Volume				Rate				(Decrease)
Interest-earning assets:
Loans		$	803			$	86			$	889
Investment securities			(15	)			(66	)			(81	)
Interest-earning deposits			(9	)			6				(3	)
Total interest-earning assets			779				26				805
Interest-bearing liabilities:
Savings accounts			17				(113	)			(96	)
NOW accounts			3				(21	)			(18	)
Money market accounts			1				(35	)			(34	)
Term certificates			(52	)			(230	)			(282	)
Total interest-bearing deposits			(31	)			(399	)			(430	)
FHLBB and FRB advances			(52	)			(20	)			(72	)
Total interest-bearing liabilities			(83	)			(419	)			(502	)
Change in net interest income		$	862			$	445			$	1,307

Randolph Bancorp, Inc. Rate/Volume Analysis (Dollars in thousands) (Unaudited)
		Year to Date
		September 30, 2021 vs. 2020
		Increase (Decrease)								Total
		Due to Changes in								Increase
		Volume				Rate				(Decrease)
Interest-earning assets:
Loans		$	751			$	(192	)		$	559
Investment securities			(40	)			(276	)			(316	)
Interest-earning deposits			-				(48	)			(48	)
Total interest-earning assets			711				(516	)			195
Interest-bearing liabilities:
Savings accounts			(27	)			(399	)			(426	)
NOW accounts			1				(34	)			(33	)
Money market accounts			(5	)			(251	)			(256	)
Term certificates			(541	)			(897	)			(1,438	)
Total interest-bearing deposits			(572	)			(1,581	)			(2,153	)
FHLBB and FRB advances			(77	)			(13	)			(90	)
Total interest-bearing liabilities			(649	)			(1,594	)			(2,243	)
Change in net interest income		$	1,360			$	1,078			$	2,438

Randolph Bancorp, Inc. Segment Information (Dollars in thousands) (Unaudited)
		For the Three Months Ended September 30, 2021
		Envision Bank				Envision Mortgage				Consolidated Total
Net interest income		$	5,243			$	733			$	5,976
Provision (credit) for loan losses			(90	)			-				(90	)
Net interest income after provision (credit) for loan losses			5,333				733				6,066
Non-interest income:
Customer service fees			394				16				410
Gain on loan origination and sale activities, net (1)			-				7,925				7,925
Mortgage servicing fees, net			(222	)			496				274
Other			105				131				236
Total non-interest income			277				8,568				8,845
Non-interest expenses:
Salaries and employee benefits			1,742				4,639				6,381
Occupancy and equipment			473				241				714
Other non-interest expenses			1,046				1,718				2,764
Total non-interest expenses			3,261				6,598				9,859
Income before income taxes and elimination of inter-segment profit		$	2,349			$	2,703				5,052
Elimination of inter-segment profit											(696	)
Income before income taxes											4,356
Income tax expense											1,230
Net income										$	3,126
(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 June 30, 2021
		Envision Bank				Envision Mortgage				Consolidated Total
Net interest income		$	4,535			$	664			$	5,199
Provision (credit) for loan losses			(27	)			-				(27	)
Net interest income after provision (credit) for loan losses			4,562				664				5,226
Non-interest income:
Customer service fees			393				26				419
Gain on loan origination and sale activities, net (1)			-				6,558				6,558
Mortgage servicing fees, net			(94	)			475				381
Other			158				118				276
Total non-interest income			457				7,177				7,634
Non-interest expenses:
Salaries and employee benefits			1,746				5,564				7,310
Occupancy and equipment			407				214				621
Other non-interest expenses			1,265				1,431				2,696
Total non-interest expenses			3,418				7,209				10,627
Income before income taxes and elimination of inter-segment profit		$	1,601			$	632				2,233
Elimination of inter-segment profit											(818	)
Income before income taxes											1,415
Income tax expense (benefit)											(162	)
Net income										$	1,577
(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 September 30, 2020
		Envision Bank				Envision Mortgage				Consolidated Total
Net interest income		$	4,032			$	637			$	4,669
Provision for loan losses			546				-				546
Net interest income after provision for loan losses			3,486				637				4,123
Non-interest income:
Customer service fees			309				21				330
Gain on loan origination and sale activities, net (1)			-				18,459				18,459
Mortgage servicing fees, net			(98	)			1,278				1,180
Other			93				169				262
Total non-interest income			304				19,927				20,231
Non-interest expenses:
Salaries and employee benefits			1,959				5,952				7,911
Occupancy and equipment			437				422				859
Other non-interest expenses			1,084				1,197				2,281
Total non-interest expenses			3,480				7,571				11,051
Income before income taxes and elimination of inter-segment profit		$	310			$	12,993				13,303
Elimination of inter-segment profit											(357	)
Income before income taxes											12,946
Income tax expense											2,661
Net income										$	10,285
(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 Nine Months Ended September 30, 2021
		Envision Bank				Envision Mortgage				Consolidated Total
Net interest income		$	13,978			$	2,288			$	16,266
Provision (credit) for loan losses			(330	)			-				(330	)
Net interest income after provision (credit) for loan losses			14,308				2,288				16,596
Non-interest income:
Customer service fees			1,125				71				1,196
Gain on loan origination and sale activities, net (1)			-				26,157				26,157
Mortgage servicing fees, net			(409	)			1,843				1,434
Other			412				384				796
Total non-interest income			1,128				28,455				29,583
Non-interest expenses:
Salaries and employee benefits			5,290				16,838				22,128
Occupancy and equipment			1,325				754				2,079
Other non-interest expenses			3,395				4,835				8,230
Total non-interest expenses			10,010				22,427				32,437
Income before income taxes and elimination of inter-segment profit		$	5,426			$	8,316				13,742
Elimination of inter-segment profit											(2,195	)
Income before income taxes											11,547
Income tax expense											2,732
Net income										$	8,815
(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 Nine Months Ended September 30, 2020
		Envision Bank				Envision Mortgage				Consolidated Total
Net interest income		$	11,970			$	1,857			$	13,827
Provision for loan losses			2,338				-				2,338
Net interest income after provision for loan losses			9,632				1,857				11,489
Non-interest income:
Customer service fees			827				75				902
Gain on loan origination and sale activities, net (1)			-				40,667				40,667
Mortgage servicing fees, net			(281	)			(1,147	)			(1,428	)
Other			318				416				734
Total non-interest income			864				40,011				40,875
Non-interest expenses:
Salaries and employee benefits (2)			6,983				17,456				24,439
Occupancy and equipment			1,305				1,090				2,395
Other non-interest expenses			3,286				3,269				6,555
Total non-interest expenses			11,574				21,815				33,389
Income (loss) before income taxes and elimination of inter-segment profit		$	(1,078	)		$	20,053				18,975
Elimination of inter-segment profit											(1,051	)
Income before income taxes											17,924
Income tax expense											3,266
Net income										$	14,658

(1)	Before elimination of inter-segment profit.
(2)	Salaries and benefits include the severance and vested stock acceleration costs related to the retirement of the CEO and CFO of the Bank. The total cost of this event was $1.38 million, of which $1.03 million was allocated to the Bank segment and the remainder, $344,000, was allocated to the mortgage segment.

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, except per share amounts) Unaudited
				Quarter Ended
				September 30, 2021
Adjustments		Income Statement Section		Income Before Taxes				Provision for Income Taxes				Net Income				Earnings per Share (diluted)
GAAP basis				$	4,356			$	1,230			$	3,126			$	0.62
Accrued severance expenses		Non-interest expense			139				40				99				0.02
Other outsourcing expenses		Non-interest expense			190				54				136				0.03
Non-GAAP basis				$	4,685			$	1,324			$	3,361			$	0.67
				Quarter Ended
				June 30, 2021
Adjustments		Income Statement Section		Income Before Taxes				Provision (credit) for Income Taxes				Net Income				Earnings per Share (diluted)
GAAP basis				$	1,415			$	(162	)		$	1,577			$	0.31
Loss on disposal of fixed assets		Non-interest income			29				8				21				-
Accrued severance expenses		Non-interest expense			145				41				104				0.02
Other outsourcing expenses		Non-interest expense			71				20				51				0.01
Non-GAAP basis				$	1,660			$	(93	)		$	1,753			$	0.34
				Quarter Ended
				March 31, 2021
Adjustments		Income Statement Section		Income Before Taxes				Provision for Income Taxes				Net Income				Earnings per Share (diluted)
GAAP basis				$	5,776			$	1,664			$	4,112			$	0.78
Accrued severance expenses		Non-interest expense			109				31				78				0.01
Non-GAAP basis				$	5,885			$	1,695			$	4,190			$	0.79
				Quarter Ended
				December 31, 2020
Adjustments		Income Statement Section		Income Before Taxes				Provision for Income Taxes				Net Income				Earnings per Share (diluted)
GAAP basis				$	7,485			$	2,211			$	5,274			$	1.01
Residential lending office closure		Non-interest expense			294				63				231				0.04
COVID-19 related expenses		Non-interest expense			69				15				54				0.01
Non-GAAP basis				$	7,848			$	2,289			$	5,559			$	1.06
				Quarter Ended
				September 30, 2020
Adjustments		Income Statement Section		Income (Loss) Before Taxes				Provision for Income Taxes				Net Income				Earnings per Share (diluted)
GAAP basis				$	12,946			$	2,661			$	10,285			$	2.01
COVID-19 related expenses		Non-interest expense			22				4				18				-
Non-GAAP basis				$	12,968			$	2,665			$	10,303			$	2.01

Randolph Bancorp, Inc. Reconciliation of GAAP to Non-GAAP Net Income (in thousands, except per share amounts) (Unaudited)
				Year to Date
				September 30, 2021
Adjustments		Income Statement Section		Income Before Taxes				Provision for Income Taxes				Net Income				Earnings per Share (diluted)
GAAP basis				$	11,547			$	2,732			$	8,815			$	1.71
Loss on disposal of fixed assets		Non-interest income			29				8				21				-
Accrued severance expenses		Non-interest expense			393				113				280				0.05
Other outsourcing expenses		Non-interest expense			261				75				186				0.04
Non-GAAP basis				$	12,230			$	2,928			$	9,302			$	1.80
				Year to Date
				September 30, 2020
Adjustments		Income Statement Section		Income Before Taxes				Provision for Income Taxes				Net Income (Loss)				Earnings per Share (diluted)
GAAP basis				$	17,924			$	3,266			$	14,658			$	2.86
Retirement salary and benefits compensation		Non-interest expense			692				126				566				0.11
Accelerated vesting of stock-based compensation		Non-interest expense			683				124				559				0.11
COVID-19 related expenses		Non-interest expense			229				42				187				0.04
Non-GAAP basis				$	19,528			$	3,558			$	15,970			$	3.12

Randolph Bancorp, Inc. Selected Financial Highlights (Unaudited)
		At or for the Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2021				2021				2021				2020				2020
Return on average assets: (1, 5)
GAAP			1.66	%			0.86	%			2.26	%			2.95	%			5.82	%
Non-GAAP (2)			1.79	%			0.96	%			2.30	%			3.11	%			5.83	%
Return on average equity: (1, 6)
GAAP			12.09	%			6.11	%			15.90	%			21.05	%			45.22	%
Non-GAAP (2)			13.00	%			6.79	%			16.21	%			22.18	%			45.30	%
Net interest margin			3.38	%			3.00	%			2.96	%			3.02	%			2.81	%
Non-interest income to total income:
GAAP			57.69	%			56.73	%			70.93	%			75.57	%			80.98	%
Non-GAAP (2)			57.69	%			56.83	%			70.93	%			75.57	%			80.98	%
Profit percentage (9)
GAAP			30.20	%			11.55	%			31.76	%			37.33	%			54.97	%
Non-GAAP (2)			32.53	%			13.56	%			32.39	%			39.09	%			55.06	%
Efficiency ratio: (7)
GAAP			69.80	%			88.45	%			68.24	%			62.67	%			45.03	%
Non-GAAP (2)			67.47	%			86.44	%			67.61	%			60.91	%			44.94	%
Tier 1 capital to average assets (3)			13.38	%			13.72	%			13.81	%			13.85	%			13.28	%
Non-performing assets as a percentage of total assets (4)			0.20	%			0.86	%			1.14	%			1.01	%			1.38	%
Allowance for loan losses as a percentage of total loans (4)			1.13	%			1.19	%			1.32	%			1.39	%			1.34	%
Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4)			1.14	%			1.22	%			1.36	%			1.41	%			1.39	%
Allowance for loan losses as a percentage of non-performing assets			427.66	%			101.89	%			78.99	%			94.58	%			67.21	%
Allowance for loan losses as a percentage of non-performing loans			427.66	%			101.89	%			77.75	%			92.87	%			66.31	%
Tangible book value per share (8)		$	19.71			$	19.16			$	18.80			$	18.16			$	17.18
Outstanding shares			5,103,619				5,254,522				5,364,240				5,495,514				5,524,390

(1)		Annualized for quarterly periods presented.
(2)		See page 22 – 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 $26,000, $28,000, $31,000, $33,000, and $36,000 at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 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. Selected Financial Highlights (Unaudited)
		At or for the Nine Months Ended
		September 30,				September 30,
		2021				2020
Return on average assets: (1, 5)
GAAP			1.59	%			2.87	%
Non-GAAP (2)			1.68	%			3.12	%
Return on average equity: (1, 6)
GAAP			11.37	%			23.13	%
Non-GAAP (2)			12.00	%			25.20	%
Net interest margin			3.12	%			2.86	%
Non-interest income to total income:
GAAP			62.74	%			74.23	%
Non-GAAP (2)			62.76	%			74.23	%
Profit percentage (9)
GAAP			25.70	%			37.77	%
Non-GAAP (2)			27.24	%			40.76	%
Efficiency ratio: (7)
GAAP			74.30	%			62.23	%
Non-GAAP (2)			72.76	%			59.24	%
Tier 1 capital to average assets (3)			13.38	%			13.28	%
Non-performing assets as a percentage of total assets (4)			0.20	%			1.38	%
Allowance for loan losses as a percentage of total loans (4)			1.13	%			1.34	%
Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4)			1.14	%			1.39	%
Allowance for loan losses as a percentage of non-performing assets			427.66	%			67.21	%
Allowance for loan losses as a percentage of non-performing loans			427.66	%			66.31	%
Tangible book value per share (8)		$	19.71			$	17.18
Outstanding shares			5,103,619				5,524,390

 

(1)		Annualized for quarterly periods presented.
(2)		See page 23 – 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 $26,000 and $36,000 at September 30, 2021 and September 30, 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 September 30, 2021
		Commercial loans				Residential and consumer loans				Residential loans serviced for others
		(Dollars in thousands)
Balance outstanding		$	215,235			$	354,786			$	1,961,939
COVID-19 related loan payment deferrals:
Loans in COVID-19-related loan payment deferral		$	-			$	1,770			$	5,220
Loans in deferral as a percentage of category loans			0.0	%			0.5	%			0.3	%
Loans with suspended payment		$	-			$	1,770			$	1,927
Loans with reduced payment			-				-				3,293
Loans which obtained a COVID-19-related payment deferral but
have since resumed payment		$	37,742			$	17,185			$	62,416
Loans reinstated (borrower paid any unpaid principal and interest)			26,769				2,453				4,825
Loans on a repayment plan			-				-				1,328
Loans which resumed payment but deferred principal and/or
interest payments to maturity			3,543				8,843				33,992
Loans which were paid off completely			7,430				5,889				22,271

Randolph Bancorp, Inc. COVID-19 Supplemental Disclosure (Unaudited)
COVID-19 Highly Impacted Sectors
		As of September 30, 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		$	1,054			$	1,054			$	-			$	-			$	1,054		$	-		$	-
Hotels/hospitality			9,549				9,491				58				-				58			9,491			-
Restaurants/food service			2,564				1,497				1,067				-				2,564			-			-
Retail/shopping center			21,887				14,407				-				3,662				16,458			1,612			-
Other sectors (2)			11,385				8,703				77				300				9,081			-			-
Total loans in COVID-19 impacted sectors		$	40,316			$	35,152			$	1,202			$	3,962			$	29,215		$	11,103		$	-
Percentage of commercial loans outstanding		18.7		%		19.0		%		6.0		%		38.7		%
Commercial loans outstanding		$	215,236			$	185,100			$	19,896			$	10,240
Loan to value secured by real estate (3)						53.8		%						63.6		%

(1)	This disclosure focuses on industries with balances that are significant to the portfolio at September 30, 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 Q3 2021?

Randolph Bancorp reported a net income of $3.1 million, or $0.64 per basic share, for Q3 2021.

How much has RNDB's total assets increased as of September 30, 2021?

Total assets increased by $7 million, or 0.9%, to $751.1 million from the previous quarter.

What is the dividend declared by Randolph Bancorp in October 2021?

The Board of Directors declared a quarterly dividend of $0.15 per common share, payable on or about November 23, 2021.

What is the loan growth reported by RNDB for Q3 2021?

Randolph Bancorp reported a total loan increase of $23.6 million, or 4.3%, to $570 million.

How did RNDB's non-interest income change in Q3 2021?

Non-interest income decreased by 59%, totaling $8.1 million for Q3 2021 compared to $19.9 million in Q3 2020.