10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

Commission File Number: 001-37780

Randolph Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Massachusetts	81-1844402
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10 Cabot Place
Stoughton, Massachusetts	02072
(Address of principal executive offices)	(Zip Code)

(781) 963-2100

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒No ☐

Indicate by check mark whether the registrants has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐		Accelerated filer	☒
Non-accelerated filer	☐	(Do not check if a smaller reporting company)	Smaller reporting company	☐

Indicate by check mark whether the registrant is large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial account standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No ☒

As of August 8, 2018, there were 5,987,796 shares of the registrant’s common stock outstanding.

Table of Contents

		Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
	Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017	1
	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2018 and 2017	2
	Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2018 and 2017	3
	Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended June 30, 2018 and 2017	4
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2018 and 2017	5
	Notes to Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
Item 3. Quantitative and Qualitative Disclosures About Market Risk		39
Item 4. Controls and Procedures		40
PART II—OTHER INFORMATION		40
Item 1. Legal Proceedings		40
Item 1A. Risk Factors		40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		41
Item 3. Defaults Upon Senior Securities		41
Item 4. Mine Safety Disclosures		41
Item 5. Other Information		41
Item 6. Exhibits		41
SIGNATURE		42

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PART I—FINANCIAL INFORMATION

Item 1.  Financial Statements

RANDOLPH BANCORP, INC. AND SUBSIDIARY

Consolidated Balance Sheets (Unaudited)

(In thousands)

	June 30,			December 31,
	2018			2017
Assets
Cash and due from banks	$	4,112		$	3,562
Interest-bearing deposits		4,950			5,260
Total cash and cash equivalents		9,062			8,822
Certificates of deposit		2,695			2,940
Securities available for sale, at fair value		56,554			61,576
Loans held for sale, at fair value		36,661			25,390
Loans, net of allowance for loan losses of $3,742 in 2018 and $3,737 in 2017		427,703			400,373
Federal Home Loan Bank of Boston stock, at cost		3,155			3,310
Accrued interest receivable		1,435			1,432
Mortgage servicing rights, net		6,845			6,397
Premises and equipment, net		9,521			8,670
Bank-owned life insurance		8,113			8,037
Foreclosed real estate		193			193
Other assets		3,972			4,752
Total assets	$	565,909		$	531,892
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	64,151		$	62,130
Interest bearing		358,748			304,706
Total deposits		422,899			366,836
Federal Home Loan Bank of Boston advances		56,680			75,954
Mortgagors' escrow accounts		1,559			907
Post-employment benefit obligations		2,622			2,750
Other liabilities		3,776			3,962
Total liabilities		487,536			450,409
Commitments and contingencies (Note 14)
Stockholders' Equity:
Preferred stock, no par value; authorized: 1,000,000 shares; issued: none		—			—
Common stock, $.01 par value; authorized: 15,000,000 shares; issued and
outstanding: 5,987,796 shares at June 30, 2018 and 6,034,276 at December 31, 2017		60			61
Additional paid-in capital		56,307			56,493
Retained earnings		28,698			30,415
ESOP-Unearned compensation		(4,225	)		(4,319	)
Accumulated other comprehensive loss, net of tax		(2,467	)		(1,167	)
Total stockholders' equity		78,373			81,483
Total liabilities and stockholders' equity	$	565,909		$	531,892

See accompanying notes to consolidated financial statements.

1

RANDOLPH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Interest and dividend income:
Loans	$	4,586		$	3,697		$	8,881		$	7,113
Securities-taxable		398			368			736			726
Securities-tax exempt		21			88			85			177
Interest-bearing deposits and certificates of deposit		34			22			64			43
Total interest and dividend income		5,039			4,175			9,766			8,059
Interest expense:
Deposits		730			381			1,210			717
Federal Home Loan Bank of Boston advances		276			104			541			168
Total interest expense		1,006			485			1,751			885
Net interest income		4,033			3,690			8,015			7,174
Provision (credit) for loan losses		(90	)		100			5			335
Net interest income after provision (credit) for loan losses		4,123			3,590			8,010			6,839
Non-interest income:
Customer service fees		439			378			739			750
Gain on loan origination and sale activities, net		1,854			2,520			3,401			4,558
Mortgage servicing fees, net		291			290			625			950
Gain on sales of securities		—			—			49			—
Increase in cash surrender value of life insurance		38			38			76			76
Other		161			208			300			510
Total non-interest income		2,783			3,434			5,190			6,844
Non-interest expenses:
Salaries and employee benefits		4,979			4,715			9,415			9,391
Occupancy and equipment		729			619			1,427			1,275
Data processing		166			179			336			361
Professional fees		320			369			572			671
Marketing		321			199			624			347
FDIC insurance		44			43			84			86
Merger and integration costs		—			357			—			524
Other		1,353			947			2,451			1,902
Total non-interest expenses		7,912			7,428			14,909			14,557
Loss before income taxes		(1,006	)		(404	)		(1,709	)		(874	)
Income tax expense (benefit)		4			(254	)		8			(277	)
Net loss	$	(1,010	)	$	(150	)	$	(1,717	)	$	(597	)
Weighted average common shares outstanding (basic and    diluted)		5,580,683			5,425,033			5,594,559			5,422,694
Loss per common share (basic and diluted)	$	(0.18	)	$	(0.03	)	$	(0.31	)	$	(0.11	)

See accompanying notes to consolidated financial statements.

2

RANDOLPH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

(In thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net loss	$	(1,010	)	$	(150	)	$	(1,717	)	$	(597	)
Other comprehensive income (loss):
Securities available for sale:
Unrealized holding gains (losses)		(173	)		725			(1,228	)		799
Reclassification adjustment for net gains realized in income (1)		—			—			(49	)		—
Net unrealized gains (losses)		(173	)		725			(1,277	)		799
Related tax effects		—			(254	)		—			(280	)
Net-of-tax amount		(173	)		471			(1,277	)		519
Supplemental retirement plan:
Reclassification adjustments (2):
Actuarial losses		9			9			18			18
Prior service credits recognized		(20	)		(23	)		(41	)		(45	)
		(11	)		(14	)		(23	)		(27	)
Related tax effects		—			—			—			—
Net-of-tax amount		(11	)		(14	)		(23	)		(27	)
Total other comprehensive income (loss)		(184	)		457			(1,300	)		492
Comprehensive income (loss)	$	(1,194	)	$	307		$	(3,017	)	$	(105	)

1) Amounts are included in gain on sales of securities in the consolidated statements of operations.

2) Amounts are included in other non-interest expenses in the consolidated statements of operations.

See accompanying notes to consolidated financial statements.

3

RANDOLPH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

Six Months Ended June 30, 2018 and 2017

																Accumulated
							Additional						Unearned			Other			Total
	Common Stock						Paid-in			Retained			Compensation			Comprehensive			Stockholders’
	Shares			Amount			Capital			Earnings			ESOP			Loss			Equity
	(Dollars in thousands)
Balance at December 31, 2016		5,868,726		$	59		$	56,373		$	32,661		$	(4,507	)	$	(1,284	)	$	83,302
Net loss		—			—			—			(597	)		—			—			(597	)
Other comprehensive income		—			—			—			—			—			492			492
Stock repurchased		(182	)		—			(3	)		—			—			—			(3	)
ESOP shares committed to be released		—			—			51			—			94			—			145
Balance at June 30, 2017		5,868,544		$	59		$	56,421		$	32,064		$	(4,413	)	$	(792	)	$	83,339
Balance at December 31, 2017		6,034,276		$	61		$	56,493		$	30,415		$	(4,319	)	$	(1,167	)	$	81,483
Net loss		—			—			—			(1,717	)		—			—			(1,717	)
Other comprehensive loss		—			—			—			—			—			(1,300	)		(1,300	)
Stock repurchased		(39,438	)		(1	)		(630	)		—			—			—			(631	)
Stock-based compensation		—			—			387			—			—			—			387
Restricted stock awards forfeited		(7,042	)		—			—			—			—			—			—
ESOP shares committed to be released		—			—			57			—			94			—			151
Balance at June 30, 2018		5,987,796		$	60		$	56,307		$	28,698		$	(4,225	)	$	(2,467	)	$	78,373

See accompanying notes to consolidated financial statements.

4

RANDOLPH BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

	For the Six Months Ended June 30,
	2018			2017
Cash flows from operating activities:
Net loss	$	(1,717	)	$	(597	)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for loan losses		5			335
Loans originated for sale		(181,394	)		(201,423	)
Net gain on sales of mortgage loans		(3,111	)		(4,604	)
Proceeds from sales of mortgage loans		169,238			204,443
Net amortization of securities		96			140
Net change in deferred loan costs and fees		(82	)		(165	)
Gain on sales of securities		(49	)		—
Depreciation and amortization		408			269
Stock-based compensation		387			—
ESOP expense		151			145
Increase in cash surrender value of life insurance		(76	)		(76	)
Net increase in mortgage servicing rights		(448	)		(506	)
Other, net		440			(608	)
Net cash used in operating activities		(16,152	)		(2,647	)
Cash flows from investing activities:
Redemptions of certificates of deposit		245			490
Securities available for sale:
Calls/maturities		470			625
Purchases		(9,993	)		—
Sales		8,958			—
Principal payments on mortgage-backed securities		4,263			1,527
Loan originations, net of principal repayments		(25,393	)		(10,104	)
Loans purchased, net of principal repayments		(1,860	)		(22,068	)
Proceeds from residential portfolio loan sale		3,996			—
Redemption (purchases) of Federal Home Loan Bank of Boston stock		155			(110	)
Purchases of premises and equipment		(1,259	)		(1,040	)
Net cash used in investing activities		(20,418	)		(30,680	)
Cash flows from financing activities:
Net increase in non-brokered deposits		12,006			17,409
Net increase in brokered deposits		44,057			—
Net increase (decrease) in short-term Federal Home Loan Bank of Boston borrowings		(17,063	)		14,590
Repayments of long-term  Federal Home Loan Bank of Boston advances		(2,211	)		(4,793	)
Net increase in mortgagors' escrow accounts		652			118
Repurchases of common stock		(631	)		(3	)
Net cash provided by financing activities		36,810			27,321
Net change in cash and cash equivalents		240			(6,006	)
Cash and cash equivalents at beginning of period		8,822			14,849
Cash and cash equivalents at end of period	$	9,062		$	8,843
Supplemental cash flow information:
Interest paid on deposits and borrowed funds	$	1,715		$	888
Income taxes paid	$	16		$	3

See accompanying notes to consolidated financial statements.

5

RANDOLPH BANCORP, INC. AND SUBSIDIARY

Notes to Unaudited Consolidated Financial Statements

June 30, 2018 and 2017

1. BASIS OF FINANCIAL STATEMENT PRESENTATION

The consolidated financial statements include the accounts of Randolph Bancorp, Inc. (“Bancorp”) and its wholly-owned subsidiary, Envision Bank (the “Bank”, together with Bancorp, the “Company”). The Bank has subsidiaries involved in owning investment securities and foreclosed real estate properties and a subsidiary which provides loan closing services. All intercompany accounts and transactions have been eliminated in consolidation.

These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying interim financial statements do not include all information required under GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, primarily consisting of normal recurring adjustments, have been included. The operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or any other interim period.

Prior to 2018, the Company’s operations were managed, and financial performance was evaluated, by the chief operating decisionmaker on a company-wide basis. As a result, management had determined there to be a single business segment for financial reporting purposes through December 31, 2017. Due to the significance of the Company’s mortgage banking operations and its strategic focus on this business, management prepared its 2018 operating budget by breaking-out its mortgage banking activities, including residential loan origination and loan servicing. As a result, effective January 1, 2018, the Company is reporting two business segments, namely, “Envision Bank” and “Envision Mortgage”. As part of this process, management analyzed costs incurred by departments providing services to both segments (indirect costs), such as IT, Marketing, Accounting and Administration, to determine the allocation of indirect costs to each business segment in order to fully measure each segment’s results of operations. See Note 15 for disclosure of the Company’s segment information.

For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC.

2. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This Update provides a revenue recognition framework for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other accounting standards. This ASU, as amended by ASU 2015-14, is effective for emerging growth companies in fiscal years beginning after December 15, 2018, including interim periods therein with early adoption permitted. The timing of the Company’s revenue recognition is not expected to materially change. The Company's revenue relates principally to financial instruments, which are explicitly excluded from the scope of the new guidance. Management continues to evaluate the potential impact of this ASU on the Company’s consolidated financial statements but does not anticipate, at this time, that adoption of this standard will have a significant impact.

In January 2016, FASB issued ASU 2016-01, Financial Instruments. This ASU revises the accounting related to the classification and measurement of investments in equity securities, and the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU is effective for emerging growth companies for annual periods beginning after December 31, 2018, including interim periods therein. The Company is currently assessing the impact of this ASU on the consolidated financial statements.

In February 2016, FASB issued ASU 2016-02, Leases. This ASU requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current accounting requirements. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for emerging growth companies in fiscal years beginning after December 15, 2019, including interim periods therein. Earlier adoption is permitted. The Company is currently assessing the impact of the adoption of this ASU on its consolidated balance sheet.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses. The ASU sets forth a “current expected credit loss” (“CECL”) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This replaces the existing

6

probable incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgements used in determining the allowance for loan losses, as well as the credit quality and underwriting standards of an organization’s loan portfolio. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This ASU is effective for emerging growth companies in fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption is permitted in fiscal years beginning after December 31, 2018. The Company is currently assessing its data and system needs and is evaluating the impact of the adoption of this ASU on the consolidated financial statements.

In April 2017, the FASB issued ASU 2017-08 Receivables – Non-refundable Fees and Other Costs, which shortens the period of amortization of the premium on certain callable debt securities to the earliest call date. Currently, generally accepted accounting principles (“GAAP”) excludes certain callable debt securities from consideration of early repayment of principal even if the holder is certain that the call will be exercised. As a result, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium is recorded as a loss in earnings. This ASU requires that premiums on certain callable debt securities be amortized to the shortest call date. Securities within the scope of this paragraph are those that have explicit, noncontingent call features that are callable at fixed prices and on preset dates. This ASU is effective for emerging growth companies for annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted, including adoption in an interim period. The impact of adopting this ASU is dependent on the materiality of callable debt securities at the time of adoption.

3. ACCUMULATED OTHER COMPREHENSIVE LOSS

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net loss. Although certain changes in assets and liabilities are reported as a separate component of stockholders’ equity, such items, along with net loss, are components of comprehensive loss.

The components of accumulated other comprehensive loss, included in total stockholders’ equity, are as follows:

	June 30,			December 31,
	2018			2017
	(In thousands)
Securities available for sale:
Net unrealized loss	$	(1,900	)	$	(624	)
Tax effect		(313	)		(313	)
Net-of-tax amount		(2,213	)		(937	)
Supplemental retirement plan
Unrecognized net actuarial loss		(649	)		(667	)
Unrecognized net prior service credit		442			484
		(207	)		(183	)
Tax effect		(47	)		(47	)
Net-of-tax amount		(254	)		(230	)
Accumulated other comprehensive loss	$	(2,467	)	$	(1,167	)

7

4. SECURITIES AVAILABLE FOR SALE

The amortized cost and fair value of securities available for sale, including gross unrealized gains and losses, are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
June 30, 2018
Debt securities:
U.S. Government-sponsored enterprises	$	3,999	$	17	$	(42	)	$	3,974
Corporate		1,529		8		(21	)		1,516
Municipal		2,020		33		—			2,053
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		27,154		50		(944	)		26,260
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		14,336		—		(749	)		13,587
U.S. Government-guaranteed		1,826		—		(39	)		1,787
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		1,738		—		(41	)		1,697
U.S. Government-guaranteed		5,307		—		(145	)		5,162
Total debt securities		57,909		108		(1,981	)		56,036
Mutual fund		545		—		(27	)		518
Total securities available for sale	$	58,454	$	108	$	(2,008	)	$	56,554
December 31, 2017
Debt securities:
U.S. Government-sponsored enterprises	$	3,999	$	50	$	(24	)	$	4,025
Corporate		2,005		27		(8	)		2,024
Municipal		12,707		179		(18	)		12,868
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		18,729		118		(450	)		18,397
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		14,451		13		(403	)		14,061
U.S. Government-guaranteed		2,132		—		(6	)		2,126
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		1,871		12		(5	)		1,878
U.S. Government-guaranteed		5,760		4		(100	)		5,664
Total debt securities		61,654		403		(1,014	)		61,043
Mutual fund		545		—		(12	)		533
Total securities available for sale	$	62,199	$	403	$	(1,026	)	$	61,576

For the six months ended June 30, 2018, proceeds from sales of available-for-sale securities amounted to $9.0 million with gross realized gains of $49,000 and no gross realized losses.

8

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2018 are presented below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
	Cost		Value
	(In thousands)
Within 1 year	$	530	$	532
After 1 year through 5 years		6,179		6,157
After 5 years through 10 years		839		854
		7,548		7,543
Mortgage-backed securities		50,361		48,493
	$	57,909	$	56,036

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	LessThan Twelve Months					Over Twelve Months
	Gross					Gross
	Unrealized			Fair		Unrealized			Fair
	Losses			Value		Losses			Value
June 30, 2018	(In thousands)
Debt securities:
U.S. Government-sponsored enterprises	$	—		$	—	$	(42	)	$	1,958
Corporate		(6	)		496		(15	)		506
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		(101	)		11,960		(843	)		11,977
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		(71	)		5,113		(678	)		8,474
U.S. Government-guaranteed		(39	)		1,787		—			—
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		(41	)		1,697		—			—
U.S. Government-guaranteed		(26	)		1,687		(119	)		3,475
Total debt securities		(284	)		22,740		(1,697	)		26,390
Mutual Fund		—			—		(27	)		518
	$	(284	)	$	22,740	$	(1,724	)	$	26,908
December 31, 2017
Debt securities:
U.S. Government-sponsored enterprises	$	—		$	—	$	(24	)	$	19,676
Corporate		—			—		(8	)		988
Municipal		(11	)		1,919		(7	)		479
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		(1	)		1,623		(449	)		13,163
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		—			—		(403	)		8,805
U.S. Government-guaranteed		(6	)		2,126		—			—
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		(5	)		678		—			—
U.S. Government-guaranteed		(1	)		295		(99	)		3,756
Total debt securities		(24	)		6,641		(990	)		46,867
Mutual Fund		—			—		(12	)		533
	$	(24	)	$	6,641	$	(1,002	)	$	47,400

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At June 30, 2018, 40 debt securities have unrealized losses with aggregate depreciation of 4.04% from the Company’s amortized cost basis. The unrealized losses at June 30, 2018, which related primarily to securities issued by U.S. government-sponsored enterprises, were primarily caused by interest rate increases. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of these investments. Therefore, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the Company does not intend to sell any debt securities and it is more likely than not that the Company will not be required to sell any debt securities before recovery of its amortized cost basis, it does not consider these investments to be other-than-temporarily impaired at June 30, 2018.

5. LOANS AND ALLOWANCE FOR LOAN LOSSES

A summary of loans held for investment at the dates indicated is as follows:

	June 30, 2018			December 31, 2017
	(In thousands)
Mortgage loans on real estate:
Residential:
One-to-four family	$	217,844		$	198,475
Home equity loans and lines of credit		41,084			38,968
Commercial		107,770			101,755
Construction		27,173			25,357
		393,871			364,555
Commercial and industrial		20,649			21,766
Consumer		15,390			16,337
Total loans		429,910			402,658
Allowance for loan losses		(3,742	)		(3,737	)
Net deferred loan costs and fees, and purchase premiums		1,535			1,452
	$	427,703		$	400,373

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The following table summarizes the changes in the allowance for loan losses by portfolio segment for the three and six months ended June 30,2018 and 2017:

				Second
	Residential			Mortgages			Commercial					Commercial
	1-4 Family			andHELOC			Real Estate			Construction		and Industrial			Consumer			Total
	(In thousands)
Three Months Ended June 30, 2018
Allowance at March 31, 2018	$	876		$	365		$	1,700		$	386	$	319		$	198		$	3,844
Provision (credit) for loan losses		88			(85	)		(195	)		57		(21	)		66			(90	)
Loans charged-off		—			—			—			—		—			(22	)		(22	)
Recoveries		5			—			—			—		—			5			10
Balance at June 30, 2018	$	969		$	280		$	1,505		$	443	$	298		$	247		$	3,742
Three Months Ended June 30, 2017
Allowance at March 31, 2017	$	821		$	395		$	1,519		$	351	$	195		$	156		$	3,437
Provision (credit) for loan losses		(9	)		(57	)		17			38		47			64			100
Loans charged-off		—			—			—			—		—			(32	)		(32	)
Recoveries		8			—			—			—		34			10			52
Balance at June 30, 2017	$	820		$	338		$	1,536		$	389	$	276		$	198		$	3,557
Six Months Ended June 30, 2018
Allowance at December 31, 2017	$	854		$	359		$	1,620		$	351	$	335		$	218		$	3,737
Provision (credit) for loan losses		85			(79	)		(115	)		92		(37	)		59			5
Loans charged-off		—			—			—			—		—			(37	)		(37	)
Recoveries		30			—			—			—		—			7			37
Balance at June 30, 2018	$	969		$	280		$	1,505		$	443	$	298		$	247		$	3,742
Six Months Ended June 30, 2017
Allowance at December 31, 2016	$	1,018		$	436		$	1,410		$	225	$	37		$	145		$	3,271
Provision (credit) for loan losses		(210	)		(98	)		126			164		204			149			335
Loans charged-off		—			—			—			—		—			(109	)		(109	)
Recoveries		12			—			—			—		35			13			60
Balance at June 30, 2017	$	820		$	338		$	1,536		$	389	$	276		$	198		$	3,557

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Additional information pertaining to the allowance for loan losses at June 30, 2018 and December 31, 2017 is as follows:

			Second
	Residential		Mortgages		Commercial				Commercial
	1-4 Family		andHELOC		Real Estate		Construction		and Industrial		Consumer		Total
June 30, 2018	(In thousands)
Allowance for impaired loans	$	103	$	—	$	—	$	—	$	—	$	—	$	103
Allowance for non-impaired loans		866		280		1,505		443		298		247		3,639
Total allowance for loan losses	$	969	$	280	$	1,505	$	443	$	298	$	247	$	3,742
Impaired loans	$	4,802	$	243	$	294	$	—	$	—	$	—	$	5,339
Non-impaired loans		213,042		40,841		107,476		27,173		20,649		15,390		424,571
Total loans	$	217,844	$	41,084	$	107,770	$	27,173	$	20,649	$	15,390	$	429,910
December 31, 2017
Allowance for impaired loans	$	160	$	1	$	1	$	—	$	—	$	—	$	162
Allowance for non-impaired loans		694		358		1,619		351		335		218		3,575
Total allowance for loan losses	$	854	$	359	$	1,620	$	351	$	335	$	218	$	3,737
Impaired loans	$	5,205	$	276	$	352	$	—	$	—	$	—	$	5,833
Non-impaired loans		193,270		38,692		101,403		25,357		21,766		16,337		396,825
Total loans	$	198,475	$	38,968	$	101,755	$	25,357	$	21,766	$	16,337	$	402,658

The following is a summary of past due and non-accrual loans at June 30, 2018 and December 31, 2017:

	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total Past Due		Non-accrual Loans
	(In thousands)
June 30, 2018
Residential one-to-four family	$	—	$	673	$	635	$	1,308	$	1,570
Home equity loans and lines of credit		—		11		—		11		243
Commercial real estate		335		—		—		335		—
Construction		—		—		—		—		—
Commercial and industrial		—		—		—		—		—
Consumer		—		—		—		—		62
Total	$	335	$	684	$	635	$	1,654	$	1,875
December 31, 2017
Residential one-to-four family	$	737	$	—	$	—	$	737	$	1,975
Home equity loans and lines of credit		96		—		—		96		276
Commercial real estate		—		—		—		—		—
Construction		—		—		—		—		—
Commercial and industrial		—		—		—		—		—
Consumer		—		—		—		—		—
Total	$	833	$	—	$	—	$	833	$	2,251

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The following is a summary of impaired loans at June 30, 2018 and December 31, 2017:

	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
June 30, 2018
Impaired loans without a valuation allowance:
Residential one-to-four family	$	2,589	$	2,548
Home equity loans and lines of credit		243		243
Commercial real estate		294		294
Total		3,126		3,085
Impaired loans with a valuation allowance:
Residential one-to-four family		2,269		2,254	$	103
Total impaired loans	$	5,395	$	5,339	$	103
December 31, 2017
Impaired loans without a valuation allowance:
Residential one-to-four family	$	2,685	$	2,641
Home equity loans and lines of credit		247		247
Commercial real estate		257		257
Total		3,189		3,145
Impaired loans with a valuation allowance:
Residential one-to-four family		2,584		2,564	$	160
Home equity loans and lines of credit		29		29		1
Commercial real estate		95		95		1
Total		2,708		2,688		162
Total impaired loans	$	5,897	$	5,833	$	162

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Additional information pertaining to impaired loans follows:

	Average		Interest		Cash Basis
	Recorded		Income		Interest
	Investment		Recognized		Recognized
	(In thousands)
Six Months Ended June 30, 2018
Residential one-to-four family	$	4,965	$	116	$	40
Home equity loans and lines of credit		262		3		25
Commercial real estate		312		9		—
Total	$	5,539	$	128	$	65
Six Months Ended June 30, 2017
Residential one-to-four family	$	4,782	$	99	$	46
Home equity loans and lines of credit		276		1		1
Commercial real estate		788		18		—
Total	$	5,846	$	118	$	47
Three Months Ended June 30, 2018
Residential one-to-four family	$	4,988	$	62	$	20
Home equity loans and lines of credit		253		—		4
Commercial real estate		294		4		—
Total	$	5,535	$	66	$	24
Three Months Ended June 30, 2017
Residential one-to-four family	$	4,964	$	55	$	27
Home equity loans and lines of credit		276		—		—
Commercial real estate		770		9		—
Total	$	6,010	$	64	$	27

No additional funds are committed to be advanced in connection with impaired loans.

Troubled Debt Restructurings

The Company periodically grants concessions to borrowers experiencing financial difficulties. The Company’s troubled debt restructurings consist primarily of interest rate concessions for periods of three months to thirty years for residential real estate loans, and for periods up to one year for commercial real estate loans.

At June 30, 2018, the Company had seventeen residential real estate loans and two commercial real estate loans aggregating $3,681,000 and $87,000, respectively, which were subject to troubled debt restructuring agreements.

At June 30, 2017, the Company had nineteen residential real estate loans and three commercial real estate loans aggregating $4,449,000 and $553,000, respectively, which were subject to troubled debt restructuring agreements.

As of June 30, 2018 and 2017, $3,589,000 and $4,006,000, respectively, in troubled debt restructurings were performing in accordance with the terms of the modified loan agreements.  Included in such amounts are $179,000 and $997,000, respectively, that are being accounted for as non-accrual loans.

For the six months ended June 30, 2018 and 2017, the Company did not enter into any loan modifications meeting the criteria of a troubled debt restructuring.

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Management performs a discounted cash flow calculation to determine the amount of valuation reserve required on each of the troubled debt restructurings.  Any reserve required is recorded as part of the allowance for loan losses. During the three and six months ended June 30,2018 and 2017, there were no material changes to the allowance for loan losses as a result of loan modifications made which were considered a troubled debt restructuring.

During the three and six months ended June 30, 2018 and 2017, there were no troubled debt restructurings that defaulted (over 30 days past due) within twelve months of the restructure date.

Credit Quality Information

The Company utilizes an eight-grade internal loan rating system for commercial real estate, construction and commercial loans, as follows:

Loans rated 1 – 3B are considered “pass” rated loans with low to average risk.

Loans rated 4 are considered “special mention.”  These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 5 are considered “substandard” and are inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged.  There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

Loans rated 6 are considered “doubtful” and have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 7 are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial and industrial loans.  Annually, the Company engages an independent third party to review a significant portion of loans within these segments.  Management uses the results of these reviews as part of its annual review process.

The following table presents the Company’s loans by risk rating at the dates indicated:

	June 30, 2018						December 31, 2017
	Commercial RealEstate		Construction		Commercial and Industrial		Commercial RealEstate		Construction		Commercial and Industrial
	(In thousands)
Loans rated 1 - 3B (Pass rated)	$	107,575	$	27,173	$	20,649	$	101,556	$	25,357	$	21,766
Loans rated 4		—		—		—		—		—		—
Loans rated 5		195		—		—		199		—		—
	$	107,770	$	27,173	$	20,649	$	101,755	$	25,357	$	21,766

Residential mortgages, home equity loans and lines of credit, and consumer loans are monitored for credit quality based primarily on their payment status. When one of these loans becomes more than 90 days delinquent it is assigned an internal loan rating.  At June 30, 2018, $62,000 in consumer loans were rated as doubtful, $702,000 in residential mortgages were rated as substandard, and $2,362,000 in residential mortgages and $243,000 in home equity loans were rated as special mention. At December 31, 2017, $712,000 in residential mortgages were rated as substandard, and $2,512,000 in residential mortgages and $247,000 in home equity loans were rated as special mention.  

6. LOAN SERVICING

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of residential mortgage loans serviced for others were $823,280,000 and $771,407,000 at June 30, 2018 and December 31, 2017, respectively.

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The following table summarizes the activity relating to mortgage servicing rights for the six months ended June 30, 2018 and 2017 (in thousands):

	June 30, 2018			June 30, 2017
Mortgage servicing rights:
Balance at beginning of year	$	6,487		$	8,910
Additions through originations		851			946
Amortization		(480	)		(671	)
Balance at end of period	$	6,858		$	9,185
Valuation allowance:
Balance at beginning of year	$	90		$	424
Provision (credit)		(77	)		(231	)
Balance at end of period	$	13		$	193
Amortized cost, net	$	6,845		$	8,992
Fair value	$	7,380		$	9,014

During the six months ended June 30, 2018 and 2017, the Company decreased the valuation allowance for its mortgage servicing rights by $77,000 and $231,000, respectively, due to an increase in fair value caused by lower expected loan prepayments.

7. INCOME TAXES

During the six months ended June 30, 2018 and 2017, the Company recorded a deferred income tax benefit of $0 and $280,000, respectively, and current state tax expense of $9,000 and $3,000, respectively. The deferred income tax benefit for the 2017 period resulted from, and was limited to, an offsetting tax provision attributable to other comprehensive income, specifically, appreciation in the fair value of available-for-sale securities.

Since 2014, the Company has maintained a valuation allowance for all of its net deferred tax assets based on a determination that it was more likely than not that such assets would not be realized. This determination was based on the Company’s net operating loss (“NOL”) carryforward position, its current period operating results exclusive of non-recurring items and its expectations for the upcoming year. In performing subsequent assessments, management has concluded that no significant changes in the key factors affecting the realizability of the deferred tax asset has occurred and that a valuation allowance for its net deferred tax assets should be maintained.

8. ON-BALANCE SHEET DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Derivative Loan Commitments

Mortgage loan commitments qualify as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding.  The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market.

Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to an increase in mortgage interest rates.  If interest rates increase, the value of these loan commitments decreases.  Conversely, if interest rates decrease, the value of these loan commitments increases.  The notional amount of derivative loan commitments was $37,857,000 and $24,222,000 at June 30, 2018 and December 31, 2017, respectively.  The fair value of certain of these commitments was an asset of $486,000 and $363,000 as of June 30, 2018 and December 31, 2017, respectively, and is included in other assets in the consolidated balance sheets while the fair value of the other commitments was a liability of $4,000 at June 30, 2018 and is included in other liabilities in the consolidated balance sheet.

Forward Loan Sale Commitments

The Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments.

With a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date.  If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor to compensate the investor for the shortfall.

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With a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g. on the same day the lender commits to lend funds to a potential borrower).

The Company expects that these forward loan sale commitments will experience inverse changes in fair value to the change in fair value of derivative loan commitments. The notional amount of forward loan sale commitments was $41,137,000 and $29,613,000 at June 30, 2018 and December 31, 2017, respectively. The fair value of certain of these commitments was an asset of $23,000 and $4,000 at June 30, 2018 and December 31, 2017, respectively, and is included in other assets in the consolidated balance sheets while the fair value of other such commitments was a liability of $137,000 and $19,000 at June 30, 2018 and December 31, 2017, respectively, and is included in other liabilities in the consolidated balance sheets.

9. EMPLOYEE STOCK OWNERSHIP PLAN

The Company maintains an Employee Stock Ownership Plan (“ESOP”), which is a tax-qualified retirement plan providing eligible employees the opportunity to own Bancorp stock. Bancorp granted a loan to the ESOP for the purchase of 469,498 shares of its common stock at $10.00 per share. The loan is payable annually over 25 years with interest at the prime rate to be reset each January 1st. The loan is secured by the shares which have not yet been allocated to participants. Loan payments are funded by cash contributions from the Bank. Such contributions are allocated to eligible participants based on their compensation, subject to federal tax limits.

Shares are committed to be released on a monthly basis and allocated as of December 31st of each year. The number of shares to be allocated annually is 18,780 through the year 2040. For the three and six months ended June 30, 2018, the Company recognized compensation expense for the ESOP of $77,000 and $151,000, respectively, while for the three and six months ended June 30, 2017, the Company recognized compensation expense for the ESOP of $76,000 and $145,000, respectively. The fair value of the 422,548 unallocated ESOP shares at June 30, 2018 was $7,099,000.

10. SHARE REPURCHASE PROGRAM

In September 2017, the Company’s Board of Directors adopted a share repurchase program under which the Company may repurchase up to 10%, or 586,854 shares of its then outstanding common shares. Repurchases under the program may be made in open market or in privately negotiated transactions and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the SEC. Any repurchased shares will be held by the Company as authorized but unissued shares. The repurchase program may be suspended or terminated at any time without prior notice, and it will expire on September 14, 2018. As of June 30, 2018, the Company had repurchased 47,500 shares at a cost of $748,000 in connection with this program.

11. EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share represents net income (loss) divided by the weighted average of common shares outstanding during the period. Unvested restricted shares of common stock having dividend rights are treated as “participating securities” and, accordingly, are considered outstanding in computing basic earnings (loss) per share. Unallocated ESOP shares are not considered to be outstanding for purposes of computing earnings per share. None of the Company’s 325,707 outstanding stock options were included in the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2018. Due to the net loss for these periods, inclusion of the stock options in the computation would have been anti-dilutive.

The following table sets forth the calculation of the average number of shares outstanding used to calculate the basic and diluted loss per share for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Average number of common shares outstanding		6,005,578			5,868,709			6,021,802			5,868,717
Less: Average unallocated ESOP shares		(424,895	)		(443,676	)		(427,243	)		(446,023	)
		5,580,683			5,425,033			5,594,559			5,422,694

12. STOCK-BASED COMPENSATION

Under the Randolph Bancorp, Inc. 2017 Stock Option and Incentive Plan (the “Equity Plan”), the Company may grant options, restricted stock, restricted units or performance awards to its directors, officers and employees. Both incentive stock options and nonqualified stock options may be granted under the Equity Plan with 586,872 shares reserved for options. The exercise price of each option equals the market price of the Company’s stock on the date of the grant and the maximum term of each options is 10 years. The

17

total number of shares reserved for restricted stock is 234,749. Options and awards generally vest ratably over five years. The fair value of shares awarded is based on the market price at the date of grant.

Stock Options

The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions:

• Volatility is based on peer group volatility because the Company does not have a sufficient trading history.

• Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, and the vesting period.

• Expected dividend yield is based on the Company's history and expectation of dividend payouts.

• The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option.

During the six months ended June 30, 2018, the Company granted options to purchase 27,000 shares of common stock and used the following assumptions in measuring the fair value of such grants:

Vesting period (years)	3-5
Expiration period (years)		10
Expected volatility		29.87	%
Expected life (years)		6.5
Expected dividend yield		—
Risk free interest rate	2.68% - 2.77%
Option fair value	$	5.79

A summary of stock option activity for the six months ended June 30, 2018 is presented in the table below:

Options	Stock Option Grants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance at December 31, 2017		316,009		$	14.66		9.78	$	219,374
Granted		27,000			16.15		10.00		—
Forfeited		(17,302	)		14.74		—		—
Balance at June 30, 2018 (all non-vested)		325,707		$	14.78		9.32	$	658,208
Exercisable at June 30, 2018		—		$	—		—		—
Unrecognized compensation cost	$	1,299,000
Weighted average remaining recognition period    (years)		4.12

For the three and six months ended June 30, 2018, stock-based compensation expense applicable to stock options was $71,000 and $145,000, respectively.

Restricted Stock

Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company. Any shares not issued because vesting requirements are not met will again be available for issuance under the Equity Plan. The fair market value of shares awarded, based on the market price at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period. Restricted stock awarded in 2017 was at no cost to the awardee. The following table presents the activity in restricted stock awards under the Equity Plan for the six months ended June 30, 2018:

	Restricted Stock Awards			Weighted Average Grant Price
Restricted stock awards at December 31, 2017		176,239		$	14.66
Granted		—			—
Forfeited		(7,042	)		14.66
Restricted stock awards at June 30, 2018 (all non-vested)		169,197		$	14.66
Unrecognized compensation cost	$	2,116,000
Weighted average remaining recognition period (years)		4.18

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For the three and six months ended June 30, 2018, stock-based compensation expense applicable to restricted stock was $109,000 and $242,000, respectively.

13. FAIR VALUE OF ASSETS AND LIABILITIES

Determination of fair value

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  Fair value is best determined based upon quoted market prices.  However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities.  In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability.

The following methods and assumptions were used by the Company in estimating fair value disclosures:

Cash and cash equivalents – The carrying amounts of cash and short-term instruments approximate fair values based on the short-term nature of the assets.

Certificates of deposit – Certificates of deposit are carried at cost. These assets are measured at fair value in level 2 based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data.

Securities – All fair value measurements are obtained from a third-party pricing service and are not adjusted by management.  The securities measured at fair value in Level 1 (none at June 30, 2018 and December 31, 2017) are based on quoted market prices in an active exchange market.  Securities measured at fair value in Level 2 are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data.

Federal Home Loan Bank of Boston (“FHLBB”) stock – It is not practical to determine the fair value of FHLBB stock due to restrictions on its transferability.

Loans held for sale – Fair values are based on commitments in effect from investors or prevailing market prices and include the servicing value of the loans.

Loans – For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.  Fair values for other loans are estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.  Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Included in loans are certain loans which were transferred from loans held for sale. These loans, which are accounted for using the fair value option, continue to be accounted for subsequent to transfer at fair value.

Mortgage servicing rights – Fair value is based on a valuation model that calculates the present value of estimated future net servicing income, using various assumptions related to fees, discount rates and prepayment speeds.

Deposit liabilities – The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts).  Fair values for fixed-rate term certificates are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities.

FHLBB advances - The fair values of the Company’s FHLBB advances are estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements.

Accrued interest - The carrying amounts of accrued interest approximate fair value.

On-balance-sheet derivatives - Fair values of forward loan sale commitments and derivative loan commitments are based on fair values of the underlying mortgage loans based on current market prices for similar assets in the secondary market. For derivative loan

19

commitments, fair values also include the value of servicing, deferred origination fees/costs and the probability of such commitments being exercised.

Off-balance sheet credit-related instruments - Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing.  The fair values of these instruments are not material.

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

							Total
	Level 1		Level 2		Level 3		FairValue
	(In thousands)
June 30, 2018
Assets:
Securities available for sale:
Debt securities	$	—	$	56,036	$	—	$	56,036
Mutual fund		—		518		—		518
Loans held for sale		—		36,661		—		36,661
Loans held for investment		—		—		1,922		1,922
Derivative loan commitments		—		486		—		486
Forward loan sale commitments		—		23		—		23
Liabilities:
Derivative loan commitments		—		4		—		4
Forward loan sale commitments		—		137		—		137
December 31, 2017
Assets:
Securities available for sale:
Debt securities	$	—	$	61,043	$	—	$	61,043
Mutual fund		—		533		—		533
Loans held for sale		—		25,390		—		25,390
Loans held for investment		—		—		6,412		6,412
Derivative loan commitments		—		363		—		363
Forward loan sale commitments		—		4		—		4
Liabilities:
Forward loan sale commitments		—		19		—		19

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Assets measured at fair value on a non-recurring basis

The Company may also be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with U.S. generally accepted accounting principles.  These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets.  The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets as of June 30, 2018 and December 31, 2017.

							Period Ended
	June 30, 2018						June 30, 2018
	Level 1		Level 2		Level 3		Total Gains (Losses)
	(In thousands)
Collateral dependent
impaired loans	$	—	$	—	$	1,255	$	—
Mortgage servicing rights		—		6,845		—		77
Assets held for sale		—		—		402		—
Foreclosed real estate		—		—		193		—
	$	—	$	6,845	$	1,850	$	77
	December 31, 2017
	Level 1		Level 2		Level 3
	(In thousands)
Collateral dependent
impaired loans	$	—	$	—	$	1,630
Mortgage servicing rights		—		6,397		—
Assets held for sale		—		—		828
Foreclosed real estate		—		—		193
	$	—	$	6,397	$	2,651

The Company recorded a partial reversal of the valuation allowance for its mortgage servicing rights of $77,000 during the six months ended June 30, 2018, due to increases in fair value caused by lower expected loan prepayments.

During the six months ended June 30, 2018, the Company sold the property which had been occupied by its former North Randolph branch office and which had been classified with assets held for sale. This sale was completed at the carrying value of this property and, accordingly, no gain of loss was recognized.

There were no liabilities measured at fair value on a non-recurring basis at June 30, 2018 and December 31, 2017.

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Summary of fair values of financial instruments

The estimated fair values, and related carrying amounts, of the Company’s financial instruments are presented below.  Certain financial instruments and all non-financial instruments are exempt from disclosure requirements.  Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include mortgagors’ escrow accounts and accrued interest payable.

	June 30, 2018
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Financial assets:
Certificates of deposit	$	2,695	$	2,676	$	—	$	2,676	$	—
Securities available for sale		56,554		56,554		—		56,554		—
Loans held for sale		36,661		36,661		—		36,661		—
Loans, net		427,703		418,040		—		—		418,040
Derivative assets		509		509		—		509		—
Financial liabilities:
Deposits	$	422,899	$	421,391	$	—	$	421,391	$	—
FHLBB advances		56,680		56,486		—		56,486		—
Derivative liabilities		141		141		—		141		—

	December 31, 2017
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Financial assets:
Certificates of deposit	$	2,940	$	2,932	$	—	$	2,932	$	—
Securities available for sale		61,576		61,576		—		61,576		—
Loans held for sale		25,390		25,390		—		25,390		—
Loans, net		400,373		398,407		—		—		398,407
Derivative assets		367		367		—		367		—
Financial liabilities:
Deposits	$	366,836		365,997	$	—	$	365,997	$	—
FHLBB advances		75,954		75,821		—		75,821		—
Derivative liabilities		19		19		—		19		—

14. COMMITMENTS AND CONTINGENCIES

Loan commitments

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of market, credit and interest rate risk which are not recognized in the consolidated financial statements.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

The following financial instruments were outstanding, at the dates indicated, whose contract amounts represent credit risk:

	June 30, 2018		December 31, 2017
	(In thousands)
Commitments to originate loans	$	48,461	$	35,549
Unused lines and letters of credit		43,290		39,968
Unadvanced funds on construction loans		10,870		6,967
Overdraft lines of credit		8,767		8,996

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Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The majority of these financial instruments are collateralized by real estate.

Other contingencies

The Company is not currently a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, results of operations or cash flows.

15. SEGMENT INFORMATION

Effective January 1, 2018, management began reporting its activities in one of two business segments, namely Envision Bank (“EB”) and Envision Mortgage (“EM”). Comparative information for the 2017 period has been prepared on a basis consistent with the methodology used in 2018. Envision Bank operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s six full service branch offices and investing those funds in residential and commercial real estate loans, home equity lines of credit, construction loans, commercial and industrial loans, and consumer loans. Envision Mortgage’s operations primarily consist of the origination and sale of residential mortgage loans and the servicing of loans sold to government-sponsored entities. A portion of the loans originated by Envision Mortgage are held in the loan portfolio of Envision Bank.

Segment information as of and for the three and six months ended June 30, 2018 follows:

	For the Three Months Ended June 30, 2018
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	3,800		$	233		$	4,033
Provision for loan losses		(90	)		—			(90	)
Net interest income after provision for loan losses		3,890			233			4,123
Non-interest income:
Customer service fees		410			29			439
Gain on loan origination and sale activities, net (1)		—			2,265			2,265
Mortgage servicing fees, net		(73	)		364			291
Other		114			85			199
Total non-interest income		451			2,743			3,194
Non-interest expenses:
Salaries and employee benefits		1,612			3,367			4,979
Occupancy and equipment		373			356			729
Other non-interest expenses		1,227			977			2,204
Total non-interest expenses		3,212			4,700			7,912
Income (loss) before income taxes and elimination of intercompany profit	$	1,129		$	(1,724	)		(595	)
Elimination of intercompany profit								(411	)
Loss before income taxes								(1,006	)
Income tax expense								4
Net loss							$	(1,010	)
Total assets, June 30, 2018	$	489,214		$	76,695		$	565,909

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	For the Six Months Ended June 30, 2018
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	7,539		$	476		$	8,015
Provision for loan losses		5			—			5
Net interest income after provision for loan losses		7,534			476			8,010
Non-interest income:
Customer service fees		711			28			739
Gain on loan origination and sale activities, net (1)		—			4,085			4,085
Mortgage servicing fees, net		(141	)		766			625
Other		248			177			425
Total non-interest income		818			5,056			5,874
Non-interest expenses:
Salaries and employee benefits		3,248			6,167			9,415
Occupancy and equipment		773			654			1,427
Other non-interest expenses		2,238			1,829			4,067
Total non-interest expenses		6,259			8,650			14,909
Income (loss) before income taxes and elimination of intercompany profit	$	2,093		$	(3,118	)		(1,025	)
Elimination of intercompany profit								(684	)
Loss before income taxes								(1,709	)
Income tax expense								8
Net loss							$	(1,717	)

(1) Before elimination of intercompany profit

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

The Company’s internal transfer pricing arrangements determined by management primarily consist of the following:

1. EM’s cost of funds is based on the weighted average rate of overnight advances from the FHLBB for the period.

2. EM is credited with service released premiums and a sales premium totaling 1.50% for new loans transferred to EB’s loans held for investment, and a 1.00% fee for HELOC originations. This income for the three and six months ended June 30, 2018 totaled $411,000 and $684,000, respectively.

3. Loan servicing fees are charged to EB by EM based on the number of residential mortgage loans held in portfolio at a rate of 0.14% per annum and amounted to $73,000 and $141,000 for the three and six months ended June 30, 2018, respectively.

4. Certain cost centers provide services to both business segments. The cost centers include Finance, Marketing, IT and Administration. Costs which are common to both business segments are referred to as “indirect costs” and are allocated using relevant benchmarks, e.g. headcount, number of accounts, etc.

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Segment information as of and for the three andsix months ended June 30, 2017 follows:

	For the Three Months Ended June 30, 2017
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	3,425		$	265		$	3,690
Provision for loan losses		100			—			100
Net interest income after provision for loan losses		3,325			265			3,590
Non-interest income:
Customer service fees		336			42			378
Gain on loan origination and sale activities, net (1)		—			2,780			2,780
Mortgage servicing fees, net		(61	)		351			290
Other		213			33			246
Total non-interest income		488			3,206			3,694
Non-interest expenses:
Salaries and employee benefits		1,642			3,073			4,715
Occupancy and equipment		325			294			619
Merger and integration costs		—			357			357
Other non-interest expenses		818			919			1,737
Total non-interest expenses		2,785			4,643			7,428
Income (loss) before income taxes and elimination of intercompany profit	$	1,028		$	(1,172	)		(144	)
Elimination of intercompany profit								(260	)
Loss before income taxes								(404	)
Income tax benefit								(254	)
Net loss							$	(150	)
Total assets, June 30, 2017	$	435,775		$	72,164		$	507,939

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	For the Six Months Ended June 30, 2017
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	6,649		$	525		$	7,174
Provision for loan losses		335			—			335
Net interest income after provision for loan losses		6,314			525			6,839
Non-interest income:
Customer service fees		708			42			750
Gain on loan origination and sale activities, net (1)		—			4,992			4,992
Mortgage servicing fees, net		(122	)		1,072			950
Other		491			95			586
Total non-interest income		1,077			6,201			7,278
Non-interest expenses:
Salaries and employee benefits		3,236			6,155			9,391
Occupancy and equipment		672			603			1,275
Merger and integration costs		19			505			524
Other non-interest expenses		1,757			1,610			3,367
Total non-interest expenses		5,684			8,873			14,557
Income (loss) before income taxes and elimination of intercompany profit	$	1,707		$	(2,147	)		(440	)
Elimination of intercompany profit								(434	)
Loss before income taxes								(874	)
Income tax benefit								(277	)
Net loss							$	(597	)

(1) Before elimination of intercompany profit

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

The Company’s internal transfer pricing arrangements determined by management primarily consist of the following:

1. EM’s cost of funds is based on the weighted average rate of overnight advances from the FHLBB for the period.

2. EM is credited with service released premiums and a sales premium totaling 1.50% for new loans transferred to EB’s loans held for investment, and a 1.00% fee for HELOC originations. This income for the three and six months ended June 30, 2017 totaled $260,000 and $434,000, respectively.

3. Loan servicing fees are charged to EB by EM based on the number of residential mortgage loans held in portfolio at a rate of 0.14% per annum and amounted to $61,000 and $122,000 for the three and six months ended June 30, 2017, respectively.

4. Certain cost centers provide services to both business segments. The cost centers include Finance, Marketing, IT and Administration. Costs which are common to both business segments are referred to as “indirect costs” and are allocated using relevant benchmarks, e.g. headcount, number of accounts, etc.

16. SUBSEQUENT EVENT

On July 31, 2018, the Company entered into a sublease agreement for 27% of the area occupied by the Andover loan operations center. This sublease runs co-terminus with the initial term of the Company’s lease which ends in March 2023 and provides for total rental income of approximately $400,000. Occupancy is expected to begin by September 2018 and is subject to approval by the building’s landlord. Based on the terms of this sublease agreement, the Company recognized an estimated loss of $60,000 as of June 30, 2018.

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This section is intended to help investors understand the financial performance of Randolph Bancorp, Inc. and its subsidiary through a discussion of the factors affecting its financial condition at June 30, 2018 and December 31, 2017, and its results of operations for the three and six month periods ended June 30, 2018 and 2017. This section should be read in conjunction with the consolidated financial statements of Randolph Bancorp, Inc. and notes thereto that appear elsewhere in this Quarterly Report. For the purpose of this Quarterly Report, the terms the “Company” “we,” “our,” and “us” refer to Randolph Bancorp, Inc. and its subsidiary unless the context indicates another meaning.

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains statements that may be considered 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, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. These statements include, among others, statements regarding our strategy, goals and expectations; evaluations of future interest rate trends and liquidity; expectations as to growth in assets, deposits and results of operations, future operations, market position and financial position; and prospects, plans and objectives of management. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond our control.

Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. Our actual results could differ materially from those projected in the forward-looking statements as a result of, among others, factors referenced herein under the section captioned “Risk Factors”; adverse conditions in the capital and debt markets and the impact of such conditions on our business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of weakness in general economic conditions on a national basis or in the local markets in which we operate, including changes that adversely affect borrowers’ ability to service and repay our loans; changes in the value of securities in our investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangible assets recorded in our financial statements will become impaired; demand for loans in our market area; our ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that we may not be successful in the implementation of our business strategy; and changes in assumptions used in making such forward-looking statements. Forward-looking statements speak only as of the date on which they are made. We do 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.

Overview

Our results of operations depend primarily on net interest income and net gains on loan origination and sale activities. Net interest income is the difference between the interest income we earn on our interest-earning assets and the interest we pay on interest-bearing liabilities. Our interest-earning assets consist primarily of residential mortgage loans, commercial real estate loans, commercial and industrial loans, home equity loans and lines of credit, construction loans, consumer loans and investment securities. Interest-bearing liabilities consist primarily of deposit accounts and borrowings from the Federal Home Loan Bank of Boston (“FHLBB”). Net gains on loan origination and sale activities result from the origination and sale of such loans to investors including Fannie Mae, Freddie Mac and other financial institutions. The amount of these gains is dependent on the volume of our loan originations, profit margins earned upon sale and the prevailing fair value of mortgage servicing rights.

Critical Accounting Policies

Certain of our accounting policies are important to the presentation of our financial condition, since they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Estimates associated with these policies are susceptible to material changes as a result of changes in facts and circumstances. Facts and circumstances which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy and changes in the financial condition of borrowers. Our significant accounting policies are discussed in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission.

27

The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for qualifying public companies. As an “emerging growth company” we have elected to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, our consolidated financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.

Comparison of Financial Condition at June 30, 2018 and December 31, 2017

Total Assets. Total assets increased $34.0 million, or 6.4%, to $565.9 million at June 30, 2018 from $531.9 million at December 31, 2017. Growth was concentrated in loans held for sale and loans held in portfolio, which increased $11.3 million and $27.3 million, respectively. Asset growth was funded by an increase in deposits of $56.1 million, including $44.1 million in brokered deposits.

Loans Held for Sale. We are actively involved in the secondary mortgage market and designate a significant majority of our residential first mortgage loan production for sale. At June 30, 2018, loans held for sale, which consist of closed residential first mortgage loans which we intend to sell to investors, totaled $36.7 million compared to $25.4 million at December 31, 2017. This increase of $11.3 million is indicative of the increased volume of origination activity during the second quarter of the current year. The Company added to its loan origination capabilities with the addition of nine experienced loan originators in 2018 which contributed to a 23% quarterly increase in residential mortgage loan production over the same period in the prior year.

Net Loans. Net loans increased $27.3 million, or 6.8%, to $427.7 million at June 30, 2018 from $400.4 million at December 31, 2017. This net growth occurred in both real estate secured loans ($22.0 million) and non-real estate secured loans ($17.8 million). Growth occurred across all categories of real estate secured loans led by residential mortgage loan growth of $19.4 million, or 9.8%, and commercial mortgage loan growth of $6.0 million, or 5.9%, in both cases due to organic growth. Residential loan growth resulted primarily from the placement in portfolio of a higher proportion of loan originations in 2018 as compared to recent years as the Company originated more jumbo mortgages in 2018. These loans are not readily saleable in the secondary mortgage market. The growth in commercial real estate lending reflects continuing strong market conditions in our lending area aided by the favorable interest rate environment that prevailed throughout the period.  Consumer loans and commercial and industrial loans, which consist primarily of loan participations and purchased loans, decreased, in aggregate, by $2.1 million during the first half of 2018 as loan repayments exceeded loan purchases during the period.

Investment Securities. Investment securities, all of which are classified as available for sale, decreased $5.0 million to $56.6 million at June 30, 2018 from $61.6 million at December 31, 2017, due primarily to principal payments on mortgage-backed securities. At June 30, 2018, investment securities represented 10.0% of total assets compared to 11.6% at December 31, 2017. This decrease continues a trend in recent years and is a consequence of our strategic shift to investing a higher proportion of interest-earning assets in loans.

Mortgage Servicing Rights.Mortgage servicing rights (“MSRs”) increased $448,000 to $6.8 million at June 30, 2018 from $6.4 million at December 31, 2017. This increase was due to the sale of loans to Fannie Mae and Freddie Mac on a servicing retained basis, net of amortization, of $371,000 during the first half of 2018 and a $77,000 partial reversal of the valuation allowance. This reversal resulted from an increase in the fair value of MSRs due to slower projected loan prepayment speeds. We serviced $823.3 million in loans for others at June 30, 2018. The fair value of the related MSRs was $7.4 million.

Deposits. Deposits increased $56.1 million, or 15.3%, to $422.9 million at June 30, 2018 from $366.8 million at December 31, 2017. Included in this increase was $44.1 million in brokered deposits and $12.0 million in non-brokered deposits. Management considers brokered deposits to be a source of wholesale funding and an alternative to FHLBB advances. Because of the lower interest rates available on brokered deposits compared to FHLBB advances across all maturity levels, the Company has increased its utilization of this funding source in 2018. The increase in non-brokered deposits during the first half of 2018 is primarily due to increases in money market accounts and term certificates, both product types where rates paid to depositors have been increased to meet competition.

FHLBB Advances. FHLBB advances, which consist primarily of overnight advances, decreased $19.3 million to $56.7 million at June 30, 2018 from $76.0 million at December 31, 2017. This decrease resulted primarily from the greater utilization of brokered deposits as a wholesale funding source during the first half of 2018.

Stockholders’ Equity. Stockholders’ equity was $78.4 million at June 30, 2018 compared to $81.5 million at December 31, 2017. The decrease of $3.1 million during the first half of 2018 was due to the net loss of $1.7 million, a reduction in the fair value of available-for sale securities of $1.3 million and stock purchases of $631,000. These items were partially offset by equity adjustments of $482,000 related to the stock benefit plan and the employee stock ownership plan. The reduction in the fair value of investment securities was caused by increases in long-term interest rates during the first six months of 2018.

28

Comparison of Operating Results for the Three Months Ended June 30, 2018 and 2017

General. The Company recorded a net loss of $1.0 million, or $0.18 per share, for the three months ended June 30, 2018 compared to a net loss of $150,000, or $0.03 per share, for the three months ended June 30, 2017. The net loss for the 2017 period included merger and integration costs of $357,000 associated with the 2016 acquisition of First Eastern Bankshares Corporation (“First Eastern”). Excluding this non-recurring item and the related tax effect, the Company would have had net income of $67,000 for the three months ended June 30, 2017. These non-core items and their financial impact are summarized in the table presented on page 36 under the caption “Non- GAAP Measures.”

The increase in the net loss between periods was attributable to the Envision Mortgage business segment which experienced lower revenues in 2018 due principally to a reduction in the profit margin realized upon the sale of mortgage loans and higher expenses associated with an increase in loan production.

Analysis of Net Interest Income

Net interest income represents the difference between income we earn on our interest-earning assets and the expense we pay on interest-bearing liabilities. Net interest income depends on the volume of interest-earning assets and interest-bearing liabilities and the interest rates earned on such assets and paid on such liabilities.

Average Balances and Yields. The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. All average balances are daily average balances. The yields set forth below include the effect of acquisition accounting adjustments as well as deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.

	For the Three Months Ended June 30,
	2018								2017
	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)	$	448,060		$	4,586		4.09	%	$	381,605		$	3,697		3.88	%
Investment securities (2) (3)		60,290			425		2.82	%		70,206			500		2.85	%
Interest-earning deposits		9,240			34		1.47	%		7,908			22		1.11	%
Total interest-earning assets		517,590			5,045		3.90	%		459,719			4,219		3.67	%
Noninterest-earning assets		29,660								30,555
Total assets	$	547,250							$	490,274
Interest-bearing liabilities:
Savings accounts		104,470			45		0.17	%		104,739			41		0.16	%
NOW accounts		43,113			58		0.54	%		47,052			55		0.47	%
Money market accounts		69,626			161		0.92	%		55,164			64		0.46	%
Term certificates		125,973			466		1.48	%		90,558			221		0.98	%
Total interest-bearing deposits		343,182			730		0.85	%		297,513			381		0.51	%
FHLBB advances		57,562			276		1.92	%		37,340			104		1.11	%
Total interest-bearing liabilities		400,744			1,006		1.00	%		334,853			485		0.58	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		60,524								65,191
Other noninterest-bearing liabilities		6,340								5,986
Total liabilities		467,608								406,030
Total stockholders' equity		79,642								84,244
Total liabilities and stockholders' equity	$	547,250							$	490,274
Net interest income				$	4,039							$	3,734
Interest rate spread(4)							2.90	%							3.09	%
Net interest-earning assets(5)	$	116,846							$	124,866
Net interest margin(6)							3.12	%							3.25	%
Ratio of interest-earning assets to interest-    bearing liabilities		129.16	%							137.29	%

29

(1) Includes nonaccruing loan balances and interest received on such loans as well as loans held for sale.

(2) Includes carrying value of securities classified as available for sale, FHLBB stock and investment in the Depositors Insurance Fund.

(3) Includes tax equivalent adjustments for municipal securities, based on effective tax rates of 21% and 34%, of $6,000 and $44,000 for the three months ended June 30, 2018 and 2017, 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.

Rate/Volume Analysis. The following table presents the effects of changing rates and volumes on our net interest income, presented on a tax equivalent basis, for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.

	Three Months Ended June 30, 2018
	Compared to
	Three Months Ended June 30, 2017
	Increase (Decrease)						Total
	Due to Changes in						Increase
(In thousands)	Volume			Rate			(Decrease)
Interest-earning assets:
Loans	$	671		$	217		$	888
Investment securities		(70	)		(4	)		(74	)
Interest-earning deposits		4			8			12
Total interest-earning assets		605			221			826
Interest-bearing liabilities:
Savings accounts		—			4			4
NOW accounts		(5	)		8			3
Money market accounts		20			77			97
Term certificates		106			139			245
Total interest-bearing deposits		121			228			349
FHLBB advances		74			98			172
Total interest-bearing liabilities		195			326			521
Change in net interest income	$	410		$	(105	)	$	305

Interest and Dividend Income. Interest and dividend income, inclusive of tax equivalent adjustments on municipal securities, increased $826,000, or 19.6%, to $5.0 million for the three months ended June 30, 2018 compared to $4.2 million for the three months ended June 30, 2017. This increase was due to an increase in average interest-earning assets between periods of $57.9 million, or 12.6%, as the Company continued to leverage the capital raised in its 2016 initial public offering. This increase all occurred in loans. The yield on interest-earning assets increased 23 basis points to 3.90% in the 2018 quarter from 3.67% in the same quarter of the prior year due principally to the higher proportion of loans to total interest-earning assets and a 21 basis points increase in the yield on loans.

Interest Expense. Interest expense increased $521,000, or 107.4%, to $1.0 million for the three months ended June 30, 2018 compared to $485,000 for the three months ended June 30, 2017. This increase was due to an increase in average interest-bearing liabilities of $65.9 million combined with a 42 basis points increase in the cost of funds to 1.00%. The increase in cost of funds was due to a 34 basis point increase in the cost of interest-bearing deposits caused by a growth in higher yielding money market  accounts and term certificates, including brokered deposits, and an 81 basis points increase in the cost of FHLBB advances. These increases are attributable to the doubling of the federal funds rate from 1.0% to 2.0% during the past twelve months. The cost of deposits has risen at a slower rate than the cost of FHLBB advances as the interest rates paid on certain core deposit products such as savings and NOW accounts have largely remained unchanged between periods.

30

Net Interest Income. Net interest income increased $305,000, or 8.2%, to $4.0 million for the three months ended June 30, 2018 compared to $3.7 million for the three months ended June 30, 2017. This improvement resulted principally from loan growth. The net interest margin decreased 13 basis points in the second quarter of 2018 from 3.25% in the second quarter of 2017 to 3.12% in the second quarter of 2018 due to a decrease in the ratio of interest-earning assets to interest-bearing liabilities from 137.3% in the 2017 quarter to 129.2% in the 2018 quarter. In addition, the net interest margin was adversely affected by a doubling of the federal funds rate from 1.0% to 2.0% over the past twelve months and a flattening of the yield curve wherein short-term rates have increased more than long-term rates.

Provision for Loan Losses. Based on the application of our loan loss methodology, a credit of $90,000 to the allowance for loan losses (“ALLL”) was recorded for the three months ended June 30, 2018 compared to a provision of $100,000 for the three months ended June 30, 2017. Based on the quarterly assessment of internal and external performance factors affecting credit risk, reductions were made in the qualitative portion of the ALLL for both commercial real estate loans and home equity loans during the second quarter of 2018. The qualitative portion of the ALLL for consumer loans was increased slightly as part of this analysis. Together these changes reduced the amount that would have been provided based on loan growth by $265,000. Classified and nonaccrual loan balances were stable during the second quarter. Regional and local economic data, including housing prices, continued their positive trend of the past several years. The allowance for loan losses was at 0.87% of total loans at June 30, 2018 compared to 0.92% at December 31, 2017, and was 186.5% of non-performing loans at June 30, 2018 compared to 165.9% at December 31, 2017.

Net Gain on Loan Origination and Sale Activities. The net gain on loan origination and sale activities decreased $666,000, or 26.4%, to $1.9 million for the three months ended June 30, 2018 compared to $2.5 million for the three months ended June 30, 2017 while loan sales decreased $3.9 million, or 3.9%, between periods from $99.9 million during the three months ended  June 30, 2017 to $96.0 million during the three months ended June 30, 2018. The reduction in loans sold was primarily due to an increase in the origination of jumbo mortgages that are not readily saleable in the secondary mortgage market. Net gains on loan sales in 2018 were adversely affected by a declining profit margin caused by competitive pressures as banks and other lenders compete based on rate to maintain market share, and lower demand for FHA loans which historically have had a higher profit margin than conforming conventional mortgage loans.

Other Non-interest Income. Non-interest income, excluding the net gain on loan origination and sale activities, increased $15,000 to $929,000 during the three months ended June 30, 2018 compared to $914,000 during the three months ended June 30, 2017. Net mortgage servicing fee income was unchanged between periods despite the lower average balance of serviced loans in 2018 due to the sale of servicing rights to $379.0 million of serviced loans in July 2017. While servicing fees collected decreased $166,000 between periods, changes in the provision (credit) to the valuation allowance for MSRs of $69,000 along with lower amortization caused by slower loan prepayment speeds fully offset the decrease in fees. Other non-interest income declined $47,000 in the 2018 period compared to the prior year period due to lower loan closing service fees of $17,000 and a reduction of $23,000 in income from a state training grant.

Non-interest Expenses. Non-interest expenses increased $484,000, or 6.5%, from $7.4 million for the three months ended June 30, 2017 to $7.9 million for the three months ended June 30, 2018. Included in the 2017 period were merger and integration costs of $357,000 associated with the First Eastern acquisition. Excluding this non-recurring item, non-interest expenses increased $841,000, or 11.9%, in the second quarter of 2018 compared to the 2017 period.

Salaries and employee benefits increased $264,000, or 5.6%, from $4.7 million in the second quarter of 2017 to $5.0 million in the second quarter of 2018 despite a reduction in full-time equivalent employees from 211 at March 31, 2017 to 185 at June 30, 2018. This decrease in headcount occurred within the Company’s Envision Mortgage business segment. This increase in salaries and employee benefits is primarily due to stock-based compensation of $126,000, guaranteed payments to new loan originators of $197,000, increased commissions of $190,000 due to a 23% increase in residential mortgage loan originations, and salary increases averaging 2.5%, or $65,000.  

Occupancy and equipment expenses increased $110,000, or 17.8%, from $619,000 in the second quarter of 2017 to $729,000 in the second quarter of 2018. This increase is due to additional rent expense and depreciation associated with the new lease of the Andover loan operations center, as well as the relocation of two existing branches to new locations (Stoughton in September 2017 and Braintree in April 2018). Also included in expenses in the second quarter of 2018 is an accrual of $60,000 associated with a sub-lease of approximately 27% of the space in the Andover facility. This sub-lease runs co-terminus with the Company’s Andover lease with an initial term ending in March 2023.

Marketing expenses increased $122,000, or 61.3%, from $199,000 in the second quarter of 2017 to $321,000 in the second quarter of 2018 due primarily to advertising costs associated with the re-branding to Envision Bank.

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Other non-interest expenses increased $406,000, or 42.9%, from $947,000 in the second quarter of 2017 to $1.4 million in the second quarter of 2018. This increase is due to additional mortgage banking related operating costs of $126,000 associated with the increase in production volume, higher software maintenance costs of $70,000, director stock-based compensation costs of $54,000 and talent acquisition costs of $49,000.

Income Tax Expense. A federal tax benefit of $254,000 was recognized for the three months ended June 30, 2017, while no benefit for federal income taxes was recognized for the three months ended June 30, 2018. The 2017 tax benefit resulted from, and was limited to, an offsetting tax provision included in other comprehensive income caused by appreciation in the far value of available for sale securities. The Company continues to maintain a full valuation allowance for its net deferred tax assets.  

Comparison of Operating Results for the Six Months Ended June 30, 2018 and 2017

General. The Company incurred a net loss of $1.7 million for the six months ended June 30, 2018 compared to a net loss of $597,000 for the six months ended June 30, 2017. Operating results for the 2017 period included merger and integration costs related to the July 2016 acquisition of First Eastern, which amounted to $524,000. Excluding this non-recurring item and the related tax effect, the Company would have had a net loss of $213,000 for the three months ended June 30, 2017. These non-core items and their financial impact are summarized in the table presented on page 36 under the caption “Non- GAAP Measures.”

The increase in the net loss between periods was attributable to the Envision Mortgage business segment which experienced lower revenues in 2018 due principally to a reduction in the profit margin realized upon the sale of mortgage loans and higher expenses associated with an increase in loan production.

Analysis of Net Interest Income

Net interest income represents the difference between income we earn on our interest-earning assets and the expense we pay on interest-bearing liabilities. Net interest income depends on the volume of interest-earning assets and interest-bearing liabilities and the interest rates earned on such assets and paid on such liabilities.

32

Average Balances and Yields. The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. All average balances are daily average balances. Non-accrual loans were included in the computation of average balances. The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.

	For the Six Months Ended June 30,
	2018								2017
	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)	$	439,069		$	8,881		4.05	%	$	370,615		$	7,113		3.84	%
Investment securities (2) (3)		60,906			844		2.77	%		70,171			994		2.83	%
Interest-earning deposits		8,563			64		1.49	%		8,093			43		1.06	%
Total interest-earning assets		508,538			9,789		3.85	%		448,879			8,150		3.63	%
Noninterest-earning assets		29,498								30,666
Total assets	$	538,036							$	479,545
Interest-bearing liabilities:
Savings accounts		104,305			87		0.17	%		104,218			80		0.15	%
NOW accounts		43,666			111		0.51	%		46,941			104		0.44	%
Money market accounts		68,670			276		0.80	%		53,655			111		0.41	%
Term certificates		113,060			736		1.30	%		89,372			422		0.94	%
Total interest-bearing deposits		329,701			1,210		0.73	%		294,186			717		0.49	%
FHLBB advances		62,010			541		1.74	%		31,882			168		1.05	%
Total interest-bearing liabilities		391,711			1,751		0.89	%		326,068			885		0.54	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		59,809								63,072
Other noninterest-bearing liabilities		6,049								6,275
Total liabilities		457,569								395,415
Total stockholders' equity		80,467								84,130
Total liabilities and stockholders' equity	$	538,036							$	479,545
Net interest income				$	8,038							$	7,265
Interest rate spread (4)							2.96	%							3.09	%
Net interest-earning assets (5)	$	116,827							$	122,811
Net interest margin (6)							3.16	%							3.24	%
Ratio of interest-earning assets to interest-    bearing liabilities		129.82	%							137.66	%

(1) Includes nonaccruing loan balances and interest received on such loans as well as loans held for sale.

(2) Includes carrying value of securities classified as available-for-sale, FHLBB stock and investment in the Depositors Insurance Fund.

(3) Includes tax equivalent adjustments for municipal securities, based on effective tax rates of 21% and 34%, of $23,000 and $91,000 for the six months ended June 30, 2018 and 2017, 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.

33

Rate/Volume Analysis. The following table presents the effects of changing rates and volumes on our net interest income, presented on a tax equivalent basis, for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume.

	Six Months Ended June 30, 2018
	Compared to
	Six Months Ended June 30, 2017
	Increase (Decrease)						Total
	Due to Changes in						Increase
(In thousands)	Volume			Rate			(Decrease)
Interest-earning assets:
Loans	$	1,369		$	400		$	1,769
Investment securities		(129	)		(21	)		(150	)
Interest-earning deposits		3			18			21
Total interest-earning assets		1,243			397			1,640
Interest-bearing liabilities:
Savings accounts		—			7			7
NOW accounts		(8	)		15			7
Money market accounts		38			127			165
Term certificates		129			185			314
Total interest-bearing deposits		159			334			493
FHLBB advances		220			153			373
Total interest-bearing liabilities		379			487			866
Change in net interest income	$	864		$	(90	)	$	774

Interest and Dividend Income. Interest and dividend income, inclusive of tax equivalent adjustments on municipal securities, increased $1.6 million, or 20.1%, to $9.8 million for the six months ended June 30, 2018 compared to $8.2 million for the six months ended June 30, 2017. This increase was due to an increase in average interest-earning assets between periods of $59.7 million, or 13.3%, as the Company continued to leverage the capital raised in its 2016 initial public offering. This increase all occurred in loans. The yield on interest-earning assets increased 22 basis points to 3.85% in the first half of 2018 from 3.63% in the first half of 2017 due principally to the higher proportion of loans to total interest-earning assets and a 21 basis points increase in the yield on loans.

Interest Expense. Interest expense increased $866,000, or 97.9%, to $1.8 million for the six months ended June 30, 2018 compared to $885,000 for the six months ended June 30, 2017. This increase principally reflects growth in the average balance of interest-bearing liabilities of $65.6 million and a 35 basis points increase to 0.89% in the cost of funds. The increase in cost of funds was due to a 24 basis points increase in the cost of interest-bearing deposits caused by a growth in higher yielding money market accounts and term certificates, including brokered deposits, and a 69 basis points increase in the cost of FHLBB advances. These increases are attributable to the doubling of the federal funds rate from 1.0% to 2.0% during the past twelve months. The cost of deposits has risen at a slower rate than the cost of FHLBB advances as the interest rates paid on certain core deposit products such as savings and NOW accounts have largely remained unchanged between periods.

Net Interest Income. Net interest income increased $774,000, or 10.7%, to $8.0 million for the six months ended June 30, 2018 compared to $7.3 million for the six months ended June 30, 2017. This improvement resulted principally from loan growth. The net interest margin in the first half of 2018 decreased 8 basis points from 3.24% in the second quarter of 2017 to 3.16% in the second quarter of 2018 due to a decrease in the ratio of interest-earning assets to interest-bearing liabilities from 137.7% in the first half of 2017 to 129.8% in the first half of 2018. In addition, the net interest margin was adversely affected by a doubling of the federal funds rate from 1.0% to 2.0% over the past twelve months and a flattening of the yield curve wherein short-term rates have increased more than long-term rates.

Provision for Loan Losses. Based on the application of our loan loss methodology, we recorded a provision for loan losses of $5,000 for the six months ended June 30, 2018 compared to a provision of $335,000 for the six months ended June 30, 2017. Based on the quarterly assessment of internal and external performance factors affecting credit risk in June 2018, reductions were made in the qualitative portion of the ALLL for both commercial real estate loans and home equity loans during the second quarter of 2018. The qualitative portion of the ALLL for consumer loans was increased slightly as part of this analysis. Together these changes reduced the

34

amount that would have been provided based on loan growth by $265,000. Classified and nonaccrual loan balances were stable during the first six months of 2018. Regional and local economic data, including housing prices, continuing their positive trend of the past several years. The provision in the 2017 period primarily reflected portfolio growth in both real estate and non-real estate secured loans.

Net Gain on Loan Origination and Sale Activities. The net gain on loan origination and sale activities decreased $1.2 million, or 25.4%, to $3.4 million for the six months ended June 30, 2018 compared to $4.6 million in the six months ended June 30, 2017. During the first half of 2017, we sold $199.8 million of residential mortgage loans compared to $170.1 million of such loans in the first half  2018 due principally to an increase in the origination of jumbo mortgages that are not readily saleable. Also contributing to the decrease in the net gain on loan origination and sale activities in 2018 was a decrease in the profit margin experienced in the current year. The reduced profit margin was due to competitive pressures as banks and other lenders compete based on rate to maintain market share, and lower demand for FHA loans which have a higher profit margin than conforming conventional loans.

Other Non-interest Income. Non-interest income, excluding the net gain on loan origination and sale activities, decreased $497,000 to $1.8 million for the six months ended June 30, 2018 compared to $2.3 million during the same period of the prior year due primarily to a decrease in net mortgage servicing fees of $325,000. This decrease is due to a reduction in the average balance of serviced loans in the 2018 period caused by the sale of servicing rights to $379.0 million in serviced loans during the third quarter of 2017, and by a reduction of $154,000 in favorable adjustments to the valuation allowance for MSRs due to increases in their fair values attributable to slower expected loan prepayment speeds. Also contributing to the decrease in other non-interest income in 2018 was lower loan closing service revenue of $38,000, a favorable adjustment in 2017 of $84,000 associated with a sale of MSRs in December 2016 and a $46,000 reduction in 2018 income related to a state training grant.

Non-interest Expenses. Non-interest expenses increased $352,000 to $14.9 million for the six months ended June 30, 2018 compared to $14.6 million for the six months ended June 30, 2017. Included in the 2017 period were merger and integration costs of $524,000 associated with the First Eastern acquisition. Excluding this non-recurring item, non-interest expenses increased $876,000, or 6.2%, in the first half of 2018 compared to the 2017 period.  

Salaries and employee benefits amounted to $9.4 million for the six months ended June 30, 2018 and 2017, despite a reduction in full-time equivalent employees from 220 at December 31, 2016 to 185 at June 30, 2018. The decrease in headcount occurred within the Company’s Envision Mortgage business segment. Offsetting the savings from the reduction in headcount were stock-based compensation of $252,000, guaranteed payments to new loan originators of $227,000, increased commissions of $123,000 due to a 7% increase in residential mortgage loans origination, and salary increases averaging 2.5%, or $130,000.  

Occupancy and equipment expenses increased $152,000, or 11.9%, in the first six months of 2018 compared to the same period in the prior year.  This increase is due to additional rent expense and depreciation associated with the new lease of the Andover loan operations center, as well as the relocation of two existing branches to new locations (Stoughton in September 2017 and Braintree in April 2018).  Also included in expenses in the first half of 2018 is an accrual of $60,000 associated with a sub-lease of approximately 27% of the space in the Andover facility.

Marketing expenses increased $277,000, or 79.8%, from $347,000 in the first half of 2017 to $624,000 in the first half of 2018 due primarily to advertising costs and other promotional materials associated with the re-branding to Envision Bank.

Professional fees decreased $99,000, or 14.8%, in the first six months of 2018 compared to the same period in the prior year due principally to lower legal fees.

Other non-interest expenses increased $549,000, or 28.9%, in the first half of 2018 compared to the first half of 2017. This increase is due to additional mortgage banking related operating costs of $137,000 associated with the increase in production volume, director stock-based compensation costs of $136,000, $83,000 in unfavorable fair value adjustments associated with portfolio loans accounted for under the fair value option which had been transferred from loans held for sale and talent acquisition costs of $49,000.

Income Tax Expense (Benefit). A deferred tax benefit of $280,000 was recognized for the six months ended June 30, 2017 while no federal income tax benefit was recognized for the six months ended June 30, 2018. The deferred tax benefit resulted from, and was limited to, an offsetting tax provision attributable to other comprehensive income relating to appreciation in the fair value of available for sale securities.

35

Non-GAAP Measures

Management assesses the Company’s financial performance for purposes of making day-to-day and strategic decisions, it does so based upon the performance of its core banking business which is derived from the combination of net interest income and non-interest income reduced by the provision for loan losses and non-interest expenses and the impact of income taxes, if any, all as adjusted for any non-core items. The Company’s financial reporting is determined in accordance with GAAP, which sometimes includes items that management believes are unrelated to its core banking business and are not expected to have a material financial impact on operating results in future periods, such as merger and integration costs and other items. Management computes the Company’s non-GAAP operating earnings, non-interest income as a percentage of total income and the efficiency ratio on an operating basis, which excludes these items, in order to measure the performance of the Company’s core banking business.

Non-GAAP measures should not be viewed as a substitute for operating results determined in accordance with GAAP. An item that management determines to be non-core and excludes when computing these non-core measures can be of substantial importance to the Company’s results for any particular reporting period. The Company’s non-GAAP performance measures are not necessarily comparable to such measures that may be used by other companies.

The following table summarizes the impact of non-core items recorded for the reporting periods indicated below and reconciles them in accordance with GAAP (in thousands):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Net loss before income taxes - GAAP basis	$	(1,010	)	$	(150	)	$	(1,717	)	$	(597	)
Non-interest expense adjustments:
Merger and integration costs		—			357			—			524
Related tax effects		—			(140	)		—			(140	)
Net income (loss) - Non-GAAP basis	$	(1,010	)	$	67		$	(1,717	)	$	(213	)

Asset Quality

Nonperforming Assets. The following table provides information with respect to our nonperforming assets, including troubled debt restructurings, at the dates indicated. We did not have any accruing loans past due 90 days or more at the dates presented.

	June 30, 2018			December 31, 2017
Nonaccrual loans:	(In thousands)
Real estate loans:
One- to four-family residential	$	1,570		$	1,976
Commercial		—			—
Home equity loans and lines of credit		243			276
Construction		—			—
Commercial and industrial loans		—			—
Consumer loans		62			—
Total nonaccrual loans		1,875			2,252
Other real estate owned		193			193
Total nonperforming assets		2,068			2,445
Performing troubled debt restructurings		3,589			3,383
Total nonperforming assets and performing troubled    debt restructurings	$	5,657		$	5,828
Total nonperforming loans to total loans(1)		0.43	%		0.56	%
Total nonperforming assets and performing    troubled debt restructurings to total assets		1.00	%		1.10	%

(1) Total loans exclude loans held for sale but include net deferred loan costs and fees.

36

Interest income that would have been recorded for the three andsix months ended June 30, 2018 had nonaccruing loans been current according to their original terms amounted to $62,000 and$124,000, respectively. Income related to nonaccrual loans included in interest income for the three andsix months ended June 30, 2018 amounted to $24,000 and $65,000, respectively.

Classified Loans.  The following table shows the aggregate amounts of our regulatory classified loans at the dates indicated.

	June 30, 2018		December 31, 2017
	(In thousands)
Classified assets:
Substandard	$	897	$	911
Doubtful		62		—
Loss		—		—
Total classified assets	$	959	$	911
Special mention	$	2,887	$	2,512

None of the special mention loans at June 30, 2018 and December 31, 2017 were on nonaccrual.

Other than as disclosed in the above tables, there are no other loans where management has information indicating that there is serious doubt about the ability of the borrowers to comply with the present loan repayment terms.

Delinquencies. The following table provides information about delinquencies in our loan portfolio at the dates indicated. Past due loans which are classified as non-accrual loans are included in this tabled based on their delinquency status.

	June 30, 2018						December 31, 2017
	30-59 Days		60-89 Days		90 Days or		30-59 Days		60-89 Days		90 Days or
(In thousands)	Past Due		Past Due		More Past Due		Past Due		Past Due		More Past Due
Real estate loans:
One- to four-family residential	$	650	$	673	$	635	$	737	$	—	$	—
Commercial		335		—		—		—		—		—
Home equity loans and lines    of credit		11		—		243		96		—		247
Construction		—		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—		—
Consumer loans		—		—		62		—		—		—
Total	$	996	$	673	$	940	$	833	$	—	$	247

Allowance for Loan Losses. The following table sets the breakdown for loan losses by loan category at the dates indicated.

	June 30, 2018								December 31, 2017
			% of Allowance			% of Loans					% of Allowance			% of Loans
			Amount to Total			in Category					Amount to Total			in Category
(Dollars in thousands)	Amount		Allowance			to Total Loans			Amount		Allowance			to Total Loans
Real estate loans:
One- to four-family residential	$	969		25.90	%		50.67	%	$	854		22.85	%		49.29	%
Commercial		1,505		40.22	%		25.07	%		1,620		43.35	%		25.27	%
Home equity loans and lines of credit		280		7.48	%		9.56	%		359		9.61	%		9.68	%
Construction		443		11.84	%		6.32	%		351		9.39	%		6.30	%
Commercial and industrial loans		298		7.96	%		4.80	%		335		8.96	%		5.41	%
Consumer loans		247		6.60	%		3.58	%		218		5.84	%		4.05	%
Total	$	3,742		100.00	%		100.00	%	$	3,737		100.00	%		100.00	%

37

The following table sets forth an analysis of the allowance for loan losses for the periods indicated.

	Six Months Ended June 30,
	2018			2017
	(In thousands)
Allowance at beginning of period	$	3,737		$	3,271
Provision for loan losses		5			335
Charge offs:
Real estate loans:
One- to four-family residential		—			—
Commercial		—			—
Home equity loans and lines of credit		—			—
Construction		—			—
Commercial and industrial loans		—			—
Consumer loans		(37	)		(109	)
Total charge-offs		(37	)		(109	)
Recoveries:
Real estate loans:
One- to four-family residential		31			12
Commercial		—			—
Home equity loans and lines of credit		—			—
Construction		—			—
Commercial and industrial loans		—			35
Consumer loans		6			13
Total recoveries		37			60
Net charge-offs		—			(49	)
Allowance at end of period	$	3,742		$	3,557
Total loans outstanding(1)	$	431,445		$	367,209
Average loans outstanding	$	407,303		$	352,250
Allowance for loan losses as a percent of total loans    outstanding(1)		0.87	%		0.97	%
Net loans charged off as a percent of average loans    outstanding(2)		—			0.03	%
Allowance for loan losses to nonperforming loans		199.64	%		159.08	%

(1) Total loans exclude loans held for sale but include net deferred loan costs and fees.

(2) Annualized.

Liquidity and Capital Resources

At June 30, 2018, we had $56.7 million of FHLBB advances outstanding. At that date, we had the ability to borrow up to an additional $88.1 million from the FHLBB and $3.5 million under an unsecured line of credit with a correspondent bank. In July 2018, the line of credit with the correspondent bank was increased to $7.5 million.

Our most liquid assets are cash and cash equivalents. The level of these assets is dependent on our operating, financing, lending and investing activities during any given period. At June 30, 2018, cash and cash equivalents totaled $9.1 million.  

Financing activities consist primarily of activity in deposit accounts and borrowings. Deposit flows are affected by the overall level of interest rates, the interest rates and products offered by us and our local competitors, and by other factors. We experienced a net increase in deposits of $56.1 million during the six months ended June 30, 2018, including $44.1 million in brokered deposits. The greater utilization of brokered deposits as a wholesale funding source in 2018 is primarily due to the more favorable interest cost of such funding compared to FHLBB advances having a similar maturity. In addition, brokered deposits are unsecured and therefore serve to preserve our borrowing capacity at the FHLBB.

38

At June 30, 2018, we had $48.5 million in loan commitments outstanding, including $37.9 million related to loans to be sold in the secondary mortgage market and for which the Company had $24.5 million in forward loan sale commitments from investors. In addition to commitments to originate loans, we had $43.3 million in unused lines of credit to borrowers and letters of credit and $10.9 million in undisbursed construction loans. We anticipate that we will have sufficient funds available to meet our current loan origination commitments. Certificates of deposit that are scheduled to mature in less than one year from June 30, 2018 totaled $74.3 million. Management expects, based on historical experience, that a substantial portion of the maturing certificates of deposit will be renewed.

We are subject to various regulatory capital requirements, including a risk-based capital measure. At June 30, 2018, our Tier 1 capital to average assets ratio was 14.76%. We exceeded all regulatory capital requirements and were considered “well capitalized” under regulatory guidelines.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

Net Interest Income Analysis. We analyze our sensitivity to changes in interest rates through our net interest income simulation model which is provided to us by an independent third party. Net interest income is the difference between the interest income we earn on our interest-earning assets, such as loans and securities, and the interest we pay on our interest-bearing liabilities, such as deposits and borrowings. We estimate what our net interest income would be over specified time horizons based on current interest rates. We then calculate what the net interest income would be for the same period under different interest rate assumptions. The comparative scenarios assume immediate parallel shifts in the yield curve in increments of 100 basis point (bp) rate movements. A basis point equals one-hundredth of one percent, and 100 basis points equals one percent. An increase in interest rates from 3.0% to 4.0% would mean, for example, a 100 basis point increase in the “Change in Interest Rates” column below. The following table shows the estimated impact on net interest income for the one-year period beginning June 30, 2018 resulting from potential changes in interest rates. The model is run quarterly showing shocks from +300bp to -100bp, as we believe a decline of greater than -100bp is currently improbable. These estimates require certain assumptions to be made, including loan and mortgage-related investment prepayment speeds, reinvestment rates, and deposit maturities and decay rates. These assumptions are inherently uncertain. As a result, no simulation model can precisely predict the impact of changes in interest rates on our net interest income. Although the net interest income table below provides an indication of our interest rate risk exposure at a particular point in time, such estimates are not intended to, and do not, provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual results.

Change in Interest Rates (basis points)(1)	Net Interest Income Year 1 Forecast		Year 1 Change from Level
	(Dollars in thousands)
+300	$	17,283		(2.1	)%
+200		17,415		(1.4	)%
+100		17,574		(0.5	)%
Level		17,656		—
-100		17,184		(2.7	)%

(1) The calculated changes assume an immediate shock of the static yield curve.

Economic Value of Equity Analysis. In order to monitor and manage interest rate risk, we also use the net present value of equity at risk, or NPV, methodology. This methodology calculates the difference between the present value of expected cash flows from assets and liabilities and provides a longer-term view of the Company’s interest rate risk positions by estimating longer-term repricing risk embedded in the balance sheet. As with the net interest income analysis discussed above, the model is run at least quarterly showing shocks ranging from +300bp to -100bp.

39

The table below sets forth, as of June 30, 2018, the estimated changes in the Company’s net present value of equity that would result from the designated changes in the United States Treasury yield curve under an instantaneous parallel shift. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results.

			Estimated Increase (Decrease) in EVE						EVE as Percentage of Economic Value of Assets(3)
Changes in Interest Rates (basis points)(1)	Estimated EVE(2)		Amount			Percent			EVE Ratio			Changes in Basis Points
	(Dollars in thousands)
+300	$	91,455	$	(1,448	)		(1.6	)%		17.55	%		86
+200		92,162		(741	)		(0.8	)%		17.31	%		62
+100		93,183		280			0.3	%		17.11	%		42
Level		92,903		—			—			16.69	%		—
-100		87,670		(5,233	)		(5.6	)%		15.45	%		(124	)

(1)Assumes instantaneous parallel changes in interest rates.

(2) EVE, or Economic Value of Equity at Risk, measures the exposure of the Company’s equity to changes in a forecast interest rate environment.

(3) EVE Ratio represents EVE divided by the economic value of assets.

The table above indicates that at June 30, 2018, in the event of an instantaneous parallel 100 basis points decrease in interest rates, we would experience a 5.6% decrease in the Economic Value of Equity at Risk. In the event of an instantaneous 300 basis point increase in interest rates, we would experience a 1.6% decrease in Economic Value of Equity at Risk. In all scenarios presented above, the calculated variances are within policy guidelines.

Certain shortcomings are inherent in the methodology used in the above interest rate risk measurement. Modeling changes in net portfolio value requires making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. In this regard, the table presented assumes that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities. The table also does not measure the changes in credit and liquidity risk that may occur as a result of changes in general interest rates. Accordingly, although the table provides an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our economic value of equity and will differ from actual results.

Item 4.  Controls and Procedures.

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of June 30, 2018. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.

During the quarter ended June 30, 2018, there have been no changes in the Company’s internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

The Company is not involved in any material pending litigation.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the factors discussed in the Company’s Annual Report on Form 10-K as filed with the SEC under the heading “Risk Factors.” The Company’s evaluation of its risk factors has not changed materially since those discussed in the Annual Report on Form 10-K.

40

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

In September 2017, the Company’s Board of Directors adopted a stock repurchase program pursuant to which the Company would purchase up to 10%, or 586,854 shares, of its then outstanding common shares. This program may be suspended or terminated at any time without prior notice and it is scheduled to expire on September 14, 2018. Repurchased shares are returned to the status of authorized but unissued shares. The following table sets forth information with respect to any purchases made by or on behalf of the Company during the indicated periods under the repurchase plan:

Period	Total Number of Shares (or Units) Purchased		Average Price Paid Per Share (or Unit)		Total Number of Shares (or Units) Purchased as Part of Pubicly Announced Plans or Programs		Maximum Number (or Appropriate Dollar Value) of Shares (Or Units) that May be Purchased Under the Plans or Programs
April 1, 2018 - April 30, 2018		—		—		—		572,354
May 1, 2018 - May 31, 2018		25,000	$	16.03		25,000		547,354
June 1, 2018 - June 30, 2018		8,000		16.02		8,000		539,354
		33,000	$	16.03		33,000		539,354

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

The exhibits listed in the Exhibit Index (following the signatures section of this report) are included in, or incorporated by reference into, this Quarterly Report on Form 10-Q.

31.1	Certification of Chief Executive Officer Required by Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act
31.2	Certification of Chief Financial Officer Required by Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act
32.1	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from Randolph Bancorp, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 were formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017, (ii) Consolidated Statements of Operations for the three and six months ended June 30, 2018 and 2017, (iii) Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2018 and 2017, (iv) Consolidated Statements of Changes in Stockholders’ Equity for the six months ended June 30, 2018 and 2017, Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and 2017 and (v) Notes to Unaudited Consolidated Financial Statements.

41

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Randolph Bancorp, Inc.

Date:  August 8, 2018	By:	/s/ James P. McDonough
		James P. McDonough
		President and Chief Executive Officer
		(Principal Executive Officer)
Date:  August 8, 2018	By:	/s/ Michael K. Devlin
		Michael K. Devlin
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

42

EX-31.1

Exhibit 31.1

Certification Pursuant to

EXCHANGE ACT Rule 13a-14(a) and Rule 15d-14(a)

I, James P. McDonough, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Randolph Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) [paragraph omitted in accordance with Exchange Act Rule 13a-14(a)];

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2018	By:	/s/ James P. McDonough
		James P. McDonough
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification Pursuant to

EXCHANGE ACT Rule 13a-14(a) and Rule 15d-14(a)

I, Michael K. Devlin, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Randolph Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) [paragraph omitted in accordance with Exchange Act Rule 13a-14(a)];

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2018	By:	/s/ Michael K. Devlin
		Michael K. Devlin
		Executive Vice President and Chief Financial Officer
		(Principal Accounting and Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Randolph Bancorp, Inc. (the “Company”) for the period ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, pursuant to 18 U.S.C. Section 1350, that to his knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  August 8, 2018	By:	/s/ James P. McDonough
		James P. McDonough
		President and Chief Executive Officer
		(Principal Executive Officer)
Date:  August 8, 2018	By:	/s/ Michael K. Devlin
		Michael K. Devlin
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 08, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	RNDB
Entity Registrant Name	Randolph Bancorp, Inc.
Entity Central Index Key	0001667161
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		5,987,796

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 4,112	$ 3,562
Interest-bearing deposits	4,950	5,260
Total cash and cash equivalents	9,062	8,822
Certificates of deposit	2,695	2,940
Securities available for sale, at fair value	56,554	61,576
Loans held for sale, at fair value	36,661	25,390
Loans, net of allowance for loan losses of $3,742 in 2018 and $3,737 in 2017	427,703	400,373
Federal Home Loan Bank of Boston stock, at cost	3,155	3,310
Accrued interest receivable	1,435	1,432
Mortgage servicing rights, net	6,845	6,397
Premises and equipment, net	9,521	8,670
Bank-owned life insurance	8,113	8,037
Foreclosed real estate	193	193
Other assets	3,972	4,752
Total assets	565,909	531,892
Deposits:
Non-interest bearing	64,151	62,130
Interest bearing	358,748	304,706
Total deposits	422,899	366,836
Federal Home Loan Bank of Boston advances	56,680	75,954
Mortgagors' escrow accounts	1,559	907
Post-employment benefit obligations	2,622	2,750
Other liabilities	3,776	3,962
Total liabilities	487,536	450,409
Commitments and contingencies (Note 14)
Stockholders' Equity:
Preferred stock, no par value; authorized: 1,000,000 shares; issued: none
Common stock, $.01 par value; authorized: 15,000,000 shares; issued and outstanding: 5,987,796 shares at June 30, 2018 and 6,034,276 at December 31, 2017	60	61
Additional paid-in capital	56,307	56,493
Retained earnings	28,698	30,415
ESOP-Unearned compensation	(4,225)	(4,319)
Accumulated other comprehensive loss, net of tax	(2,467)	(1,167)
Total stockholders' equity	78,373	81,483
Total liabilities and stockholders' equity	$ 565,909	$ 531,892

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Loans, allowance for loan losses	$ 3,742	$ 3,737
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	5,987,796	6,034,276
Common stock, shares outstanding	5,987,796	6,034,276

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest and dividend income:
Loans	$ 4,586	$ 3,697	$ 8,881	$ 7,113
Securities-taxable	398	368	736	726
Securities-tax exempt	21	88	85	177
Interest-bearing deposits and certificates of deposit	34	22	64	43
Total interest and dividend income	5,039	4,175	9,766	8,059
Interest expense:
Deposits	730	381	1,210	717
Federal Home Loan Bank of Boston advances	276	104	541	168
Total interest expense	1,006	485	1,751	885
Net interest income	4,033	3,690	8,015	7,174
Provision (credit) for loan losses	(90)	100	5	335
Net interest income after provision (credit) for loan losses	4,123	3,590	8,010	6,839
Non-interest income:
Customer service fees	439	378	739	750
Gain on loan origination and sale activities, net	1,854	2,520	3,401	4,558
Mortgage servicing fees, net	291	290	625	950
Gain on sales of securities			49
Increase in cash surrender value of life insurance	38	38	76	76
Other	161	208	300	510
Total non-interest income	2,783	3,434	5,190	6,844
Non-interest expenses:
Salaries and employee benefits	4,979	4,715	9,415	9,391
Occupancy and equipment	729	619	1,427	1,275
Data processing	166	179	336	361
Professional fees	320	369	572	671
Marketing	321	199	624	347
FDIC insurance	44	43	84	86
Merger and integration costs		357		524
Other	1,353	947	2,451	1,902
Total non-interest expenses	7,912	7,428	14,909	14,557
Loss before income taxes	(1,006)	(404)	(1,709)	(874)
Income tax expense (benefit)	4	(254)	8	(277)
Net loss	$ (1,010)	$ (150)	$ (1,717)	$ (597)
Weighted average common shares outstanding (basic and diluted)	5,580,683	5,425,033	5,594,559	5,422,694
Loss per common share (basic and diluted)	$ (0.18)	$ (0.03)	$ (0.31)	$ (0.11)

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net loss		$ (1,010)	$ (150)	$ (1,717)	$ (597)
Securities available for sale:
Unrealized holding gains (losses)		(173)	725	(1,228)	799
Reclassification adjustment for net gains realized in income	[1]	0	0	(49)	0
Net unrealized gains (losses)		(173)	725	(1,277)	799
Related tax effects			(254)		(280)
Net-of-tax amount		(173)	471	(1,277)	519
Related tax effects		0	0	0	0
Net-of-tax amount		(11)	(14)	(23)	(27)
Total other comprehensive income (loss)		(184)	457	(1,300)	492
Comprehensive income (loss)		(1,194)	307	(3,017)	(105)
Supplemental Retirement Plan [Member]
Securities available for sale:
Actuarial losses	[2]	9	9	18	18
Prior service credits recognized	[2]	(20)	(23)	(41)	(45)
Post-retirement benefit plans		$ (11)	$ (14)	$ (23)	$ (27)

[1] Amounts are included in gain on sales of securities in the consolidated statements of operations.

[2] Amounts are included in other non-interest expenses in the consolidated statements of operations.

XML

Consolidated Statements Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unearned Compensation ESOP [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Dec. 31, 2016	$ 83,302	$ 59	$ 56,373	$ 32,661	$ (4,507)	$ (1,284)
Beginning balance, shares at Dec. 31, 2016		5,868,726,000
Net loss	(597)			(597)
Other comprehensive income (loss)	492					492
Stock repurchased	(3)		(3)
Stock repurchased, shares		(182,000)
ESOP shares committed to be released	145		51		94
Ending balance at Jun. 30, 2017	83,339	$ 59	56,421	32,064	(4,413)	(792)
Ending balance, shares at Jun. 30, 2017		5,868,544,000
Beginning balance at Dec. 31, 2016	83,302	$ 59	56,373	32,661	(4,507)	(1,284)
Beginning balance, shares at Dec. 31, 2016		5,868,726,000
Ending balance at Dec. 31, 2017	81,483	$ 61	56,493	30,415	(4,319)	(1,167)
Ending balance, shares at Dec. 31, 2017		6,034,276,000
Net loss	(1,717)			(1,717)
Other comprehensive income (loss)	(1,300)					(1,300)
Stock repurchased	(631)	$ (1)	(630)
Stock repurchased, shares		(39,438,000)
Stock-based compensation	387		387
Restricted stock awards forfeited, shares		(7,042,000)
ESOP shares committed to be released	151		57		94
Ending balance at Jun. 30, 2018	$ 78,373	$ 60	$ 56,307	$ 28,698	$ (4,225)	$ (2,467)
Ending balance, shares at Jun. 30, 2018		5,987,796,000

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Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (1,717,000)	$ (597,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for loan losses	5,000	335,000
Loans originated for sale	(181,394,000)	(201,423,000)
Net gain on sales of mortgage loans	(3,111,000)	(4,604,000)
Proceeds from sales of mortgage loans	169,238,000	204,443,000
Net amortization of securities	96,000	140,000
Net change in deferred loan costs and fees	(82,000)	(165,000)
Gain on sales of securities	(49,000)
Depreciation and amortization	408,000	269,000
Stock-based compensation	387,000
ESOP expense	151,000	145,000
Increase in cash surrender value of life insurance	(76,000)	(76,000)
Net increase in mortgage servicing rights	(448,000)	(506,000)
Other, net	440,000	(608,000)
Net cash used in operating activities	(16,152,000)	(2,647,000)
Cash flows from investing activities:
Redemptions of certificates of deposit	245,000	490,000
Securities available for sale:
Calls/maturities	470,000	625,000
Purchases	(9,993,000)
Sales	8,958,000
Principal payments on mortgage-backed securities	4,263,000	1,527,000
Loan originations, net of principal repayments	(25,393,000)	(10,104,000)
Loans purchased, net of principal repayments	(1,860,000)	(22,068,000)
Proceeds from residential portfolio loan sale	3,996,000
Redemption (purchases) of Federal Home Loan Bank of Boston stock	155,000	(110,000)
Purchases of premises and equipment	(1,259,000)	(1,040,000)
Net cash used in investing activities	(20,418,000)	(30,680,000)
Cash flows from financing activities:
Net increase in non-brokered deposits	12,006,000	17,409,000
Net increase in brokered deposits	44,057,000
Net increase (decrease) in short-term Federal Home Loan Bank of Boston borrowings	(17,063,000)	14,590,000
Repayments of long-term Federal Home Loan Bank of Boston advances	(2,211,000)	(4,793,000)
Net increase in mortgagors' escrow accounts	652,000	118,000
Repurchases of common stock	(631,000)	(3,000)
Net cash provided by financing activities	36,810,000	27,321,000
Net change in cash and cash equivalents	240,000	(6,006,000)
Cash and cash equivalents at beginning of period	8,822,000	14,849,000
Cash and cash equivalents at end of period	9,062,000	8,843,000
Supplemental cash flow information:
Interest paid on deposits and borrowed funds	1,715,000	888,000
Income taxes paid	$ 16,000	$ 3,000

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Basis of Financial Statement Presentation

6 Months Ended

Jun. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Financial Statement Presentation

1. BASIS OF FINANCIAL STATEMENT PRESENTATION

The consolidated financial statements include the accounts of Randolph Bancorp, Inc. (“Bancorp”) and its wholly-owned subsidiary, Envision Bank (the “Bank”, together with Bancorp, the “Company”). The Bank has subsidiaries involved in owning investment securities and foreclosed real estate properties and a subsidiary which provides loan closing services. All intercompany accounts and transactions have been eliminated in consolidation.

These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying interim financial statements do not include all information required under GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, primarily consisting of normal recurring adjustments, have been included. The operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or any other interim period.

Prior to 2018, the Company’s operations were managed, and financial performance was evaluated, by the chief operating decisionmaker on a company-wide basis. As a result, management had determined there to be a single business segment for financial reporting purposes through December 31, 2017. Due to the significance of the Company’s mortgage banking operations and its strategic focus on this business, management prepared its 2018 operating budget by breaking-out its mortgage banking activities, including residential loan origination and loan servicing. As a result, effective January 1, 2018, the Company is reporting two business segments, namely, “Envision Bank” and “Envision Mortgage”. As part of this process, management analyzed costs incurred by departments providing services to both segments (indirect costs), such as IT, Marketing, Accounting and Administration, to determine the allocation of indirect costs to each business segment in order to fully measure each segment’s results of operations. See Note 15 for disclosure of the Company’s segment information.

For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2018

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

2. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This Update provides a revenue recognition framework for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other accounting standards. This ASU, as amended by ASU 2015-14, is effective for emerging growth companies in fiscal years beginning after December 15, 2018, including interim periods therein with early adoption permitted. The timing of the Company’s revenue recognition is not expected to materially change. The Company's revenue relates principally to financial instruments, which are explicitly excluded from the scope of the new guidance. Management continues to evaluate the potential impact of this ASU on the Company’s consolidated financial statements but does not anticipate, at this time, that adoption of this standard will have a significant impact.

In January 2016, FASB issued ASU 2016-01, Financial Instruments. This ASU revises the accounting related to the classification and measurement of investments in equity securities, and the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU is effective for emerging growth companies for annual periods beginning after December 31, 2018, including interim periods therein. The Company is currently assessing the impact of this ASU on the consolidated financial statements.

In February 2016, FASB issued ASU 2016-02, Leases. This ASU requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current accounting requirements. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for emerging growth companies in fiscal years beginning after December 15, 2019, including interim periods therein. Earlier adoption is permitted. The Company is currently assessing the impact of the adoption of this ASU on its consolidated balance sheet.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses. The ASU sets forth a “current expected credit loss” (“CECL”) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This replaces the existing probable incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgements used in determining the allowance for loan losses, as well as the credit quality and underwriting standards of an organization’s loan portfolio. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This ASU is effective for emerging growth companies in fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption is permitted in fiscal years beginning after December 31, 2018. The Company is currently assessing its data and system needs and is evaluating the impact of the adoption of this ASU on the consolidated financial statements.

In April 2017, the FASB issued ASU 2017-08 Receivables – Non-refundable Fees and Other Costs, which shortens the period of amortization of the premium on certain callable debt securities to the earliest call date. Currently, generally accepted accounting principles (“GAAP”) excludes certain callable debt securities from consideration of early repayment of principal even if the holder is certain that the call will be exercised. As a result, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium is recorded as a loss in earnings. This ASU requires that premiums on certain callable debt securities be amortized to the shortest call date. Securities within the scope of this paragraph are those that have explicit, noncontingent call features that are callable at fixed prices and on preset dates. This ASU is effective for emerging growth companies for annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted, including adoption in an interim period. The impact of adopting this ASU is dependent on the materiality of callable debt securities at the time of adoption.

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Accumulated Other Comprehensive Loss

3. ACCUMULATED OTHER COMPREHENSIVE LOSS

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net loss. Although certain changes in assets and liabilities are reported as a separate component of stockholders’ equity, such items, along with net loss, are components of comprehensive loss.

The components of accumulated other comprehensive loss, included in total stockholders’ equity, are as follows:

	June 30,			December 31,
	2018			2017
	(In thousands)
Securities available for sale:
Net unrealized loss	$	(1,900	)	$	(624	)
Tax effect		(313	)		(313	)
Net-of-tax amount		(2,213	)		(937	)
Supplemental retirement plan
Unrecognized net actuarial loss		(649	)		(667	)
Unrecognized net prior service credit		442			484
		(207	)		(183	)
Tax effect		(47	)		(47	)
Net-of-tax amount		(254	)		(230	)
Accumulated other comprehensive loss	$	(2,467	)	$	(1,167	)

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Securities Available for Sale

6 Months Ended

Jun. 30, 2018

Investments Debt And Equity Securities [Abstract]

Securities Available for Sale

4. SECURITIES AVAILABLE FOR SALE

The amortized cost and fair value of securities available for sale, including gross unrealized gains and losses, are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
June 30, 2018
Debt securities:
U.S. Government-sponsored enterprises	$	3,999	$	17	$	(42	)	$	3,974
Corporate		1,529		8		(21	)		1,516
Municipal		2,020		33		—			2,053
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		27,154		50		(944	)		26,260
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		14,336		—		(749	)		13,587
U.S. Government-guaranteed		1,826		—		(39	)		1,787
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		1,738		—		(41	)		1,697
U.S. Government-guaranteed		5,307		—		(145	)		5,162
Total debt securities		57,909		108		(1,981	)		56,036
Mutual fund		545		—		(27	)		518
Total securities available for sale	$	58,454	$	108	$	(2,008	)	$	56,554
December 31, 2017
Debt securities:
U.S. Government-sponsored enterprises	$	3,999	$	50	$	(24	)	$	4,025
Corporate		2,005		27		(8	)		2,024
Municipal		12,707		179		(18	)		12,868
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		18,729		118		(450	)		18,397
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		14,451		13		(403	)		14,061
U.S. Government-guaranteed		2,132		—		(6	)		2,126
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		1,871		12		(5	)		1,878
U.S. Government-guaranteed		5,760		4		(100	)		5,664
Total debt securities		61,654		403		(1,014	)		61,043
Mutual fund		545		—		(12	)		533
Total securities available for sale	$	62,199	$	403	$	(1,026	)	$	61,576

For the six months ended June 30, 2018, proceeds from sales of available-for-sale securities amounted to $9.0 million with gross realized gains of $49,000 and no gross realized losses.

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2018 are presented below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
	Cost		Value
	(In thousands)
Within 1 year	$	530	$	532
After 1 year through 5 years		6,179		6,157
After 5 years through 10 years		839		854
		7,548		7,543
Mortgage-backed securities		50,361		48,493
	$	57,909	$	56,036

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	LessThan Twelve Months					Over Twelve Months
	Gross					Gross
	Unrealized			Fair		Unrealized			Fair
	Losses			Value		Losses			Value
June 30, 2018	(In thousands)
Debt securities:
U.S. Government-sponsored enterprises	$	—		$	—	$	(42	)	$	1,958
Corporate		(6	)		496		(15	)		506
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		(101	)		11,960		(843	)		11,977
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		(71	)		5,113		(678	)		8,474
U.S. Government-guaranteed		(39	)		1,787		—			—
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		(41	)		1,697		—			—
U.S. Government-guaranteed		(26	)		1,687		(119	)		3,475
Total debt securities		(284	)		22,740		(1,697	)		26,390
Mutual Fund		—			—		(27	)		518
	$	(284	)	$	22,740	$	(1,724	)	$	26,908
December 31, 2017
Debt securities:
U.S. Government-sponsored enterprises	$	—		$	—	$	(24	)	$	19,676
Corporate		—			—		(8	)		988
Municipal		(11	)		1,919		(7	)		479
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		(1	)		1,623		(449	)		13,163
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		—			—		(403	)		8,805
U.S. Government-guaranteed		(6	)		2,126		—			—
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		(5	)		678		—			—
U.S. Government-guaranteed		(1	)		295		(99	)		3,756
Total debt securities		(24	)		6,641		(990	)		46,867
Mutual Fund		—			—		(12	)		533
	$	(24	)	$	6,641	$	(1,002	)	$	47,400

At June 30, 2018, 40 debt securities have unrealized losses with aggregate depreciation of 4.04% from the Company’s amortized cost basis. The unrealized losses at June 30, 2018, which related primarily to securities issued by U.S. government-sponsored enterprises, were primarily caused by interest rate increases. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of these investments. Therefore, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the Company does not intend to sell any debt securities and it is more likely than not that the Company will not be required to sell any debt securities before recovery of its amortized cost basis, it does not consider these investments to be other-than-temporarily impaired at June 30, 2018.

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Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Loans and Allowance for Loan Losses

5. LOANS AND ALLOWANCE FOR LOAN LOSSES

A summary of loans held for investment at the dates indicated is as follows:

	June 30, 2018			December 31, 2017
	(In thousands)
Mortgage loans on real estate:
Residential:
One-to-four family	$	217,844		$	198,475
Home equity loans and lines of credit		41,084			38,968
Commercial		107,770			101,755
Construction		27,173			25,357
		393,871			364,555
Commercial and industrial		20,649			21,766
Consumer		15,390			16,337
Total loans		429,910			402,658
Allowance for loan losses		(3,742	)		(3,737	)
Net deferred loan costs and fees, and purchase premiums		1,535			1,452
	$	427,703		$	400,373

The following table summarizes the changes in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2018 and 2017:

				Second
	Residential			Mortgages			Commercial					Commercial
	1-4 Family			andHELOC			Real Estate			Construction		and Industrial			Consumer			Total
	(In thousands)
Three Months Ended June 30, 2018
Allowance at March 31, 2018	$	876		$	365		$	1,700		$	386	$	319		$	198		$	3,844
Provision (credit) for loan losses		88			(85	)		(195	)		57		(21	)		66			(90	)
Loans charged-off		—			—			—			—		—			(22	)		(22	)
Recoveries		5			—			—			—		—			5			10
Balance at June 30, 2018	$	969		$	280		$	1,505		$	443	$	298		$	247		$	3,742
Three Months Ended June 30, 2017
Allowance at March 31, 2017	$	821		$	395		$	1,519		$	351	$	195		$	156		$	3,437
Provision (credit) for loan losses		(9	)		(57	)		17			38		47			64			100
Loans charged-off		—			—			—			—		—			(32	)		(32	)
Recoveries		8			—			—			—		34			10			52
Balance at June 30, 2017	$	820		$	338		$	1,536		$	389	$	276		$	198		$	3,557
Six Months Ended June 30, 2018
Allowance at December 31, 2017	$	854		$	359		$	1,620		$	351	$	335		$	218		$	3,737
Provision (credit) for loan losses		85			(79	)		(115	)		92		(37	)		59			5
Loans charged-off		—			—			—			—		—			(37	)		(37	)
Recoveries		30			—			—			—		—			7			37
Balance at June 30, 2018	$	969		$	280		$	1,505		$	443	$	298		$	247		$	3,742
Six Months Ended June 30, 2017
Allowance at December 31, 2016	$	1,018		$	436		$	1,410		$	225	$	37		$	145		$	3,271
Provision (credit) for loan losses		(210	)		(98	)		126			164		204			149			335
Loans charged-off		—			—			—			—		—			(109	)		(109	)
Recoveries		12			—			—			—		35			13			60
Balance at June 30, 2017	$	820		$	338		$	1,536		$	389	$	276		$	198		$	3,557

Additional information pertaining to the allowance for loan losses at June 30, 2018 and December 31, 2017 is as follows:

			Second
	Residential		Mortgages		Commercial				Commercial
	1-4 Family		andHELOC		Real Estate		Construction		and Industrial		Consumer		Total
June 30, 2018	(In thousands)
Allowance for impaired loans	$	103	$	—	$	—	$	—	$	—	$	—	$	103
Allowance for non-impaired loans		866		280		1,505		443		298		247		3,639
Total allowance for loan losses	$	969	$	280	$	1,505	$	443	$	298	$	247	$	3,742
Impaired loans	$	4,802	$	243	$	294	$	—	$	—	$	—	$	5,339
Non-impaired loans		213,042		40,841		107,476		27,173		20,649		15,390		424,571
Total loans	$	217,844	$	41,084	$	107,770	$	27,173	$	20,649	$	15,390	$	429,910
December 31, 2017
Allowance for impaired loans	$	160	$	1	$	1	$	—	$	—	$	—	$	162
Allowance for non-impaired loans		694		358		1,619		351		335		218		3,575
Total allowance for loan losses	$	854	$	359	$	1,620	$	351	$	335	$	218	$	3,737
Impaired loans	$	5,205	$	276	$	352	$	—	$	—	$	—	$	5,833
Non-impaired loans		193,270		38,692		101,403		25,357		21,766		16,337		396,825
Total loans	$	198,475	$	38,968	$	101,755	$	25,357	$	21,766	$	16,337	$	402,658

The following is a summary of past due and non-accrual loans at June 30, 2018 and December 31, 2017:

	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total Past Due		Non-accrual Loans
	(In thousands)
June 30, 2018
Residential one-to-four family	$	—	$	673	$	635	$	1,308	$	1,570
Home equity loans and lines of credit		—		11		—		11		243
Commercial real estate		335		—		—		335		—
Construction		—		—		—		—		—
Commercial and industrial		—		—		—		—		—
Consumer		—		—		—		—		62
Total	$	335	$	684	$	635	$	1,654	$	1,875
December 31, 2017
Residential one-to-four family	$	737	$	—	$	—	$	737	$	1,975
Home equity loans and lines of credit		96		—		—		96		276
Commercial real estate		—		—		—		—		—
Construction		—		—		—		—		—
Commercial and industrial		—		—		—		—		—
Consumer		—		—		—		—		—
Total	$	833	$	—	$	—	$	833	$	2,251

The following is a summary of impaired loans at June 30, 2018 and December 31, 2017:

	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
June 30, 2018
Impaired loans without a valuation allowance:
Residential one-to-four family	$	2,589	$	2,548
Home equity loans and lines of credit		243		243
Commercial real estate		294		294
Total		3,126		3,085
Impaired loans with a valuation allowance:
Residential one-to-four family		2,269		2,254	$	103
Total impaired loans	$	5,395	$	5,339	$	103
December 31, 2017
Impaired loans without a valuation allowance:
Residential one-to-four family	$	2,685	$	2,641
Home equity loans and lines of credit		247		247
Commercial real estate		257		257
Total		3,189		3,145
Impaired loans with a valuation allowance:
Residential one-to-four family		2,584		2,564	$	160
Home equity loans and lines of credit		29		29		1
Commercial real estate		95		95		1
Total		2,708		2,688		162
Total impaired loans	$	5,897	$	5,833	$	162

Additional information pertaining to impaired loans follows:

	Average		Interest		Cash Basis
	Recorded		Income		Interest
	Investment		Recognized		Recognized
	(In thousands)
Six Months Ended June 30, 2018
Residential one-to-four family	$	4,965	$	116	$	40
Home equity loans and lines of credit		262		3		25
Commercial real estate		312		9		—
Total	$	5,539	$	128	$	65
Six Months Ended June 30, 2017
Residential one-to-four family	$	4,782	$	99	$	46
Home equity loans and lines of credit		276		1		1
Commercial real estate		788		18		—
Total	$	5,846	$	118	$	47
Three Months Ended June 30, 2018
Residential one-to-four family	$	4,988	$	62	$	20
Home equity loans and lines of credit		253		—		4
Commercial real estate		294		4		—
Total	$	5,535	$	66	$	24
Three Months Ended June 30, 2017
Residential one-to-four family	$	4,964	$	55	$	27
Home equity loans and lines of credit		276		—		—
Commercial real estate		770		9		—
Total	$	6,010	$	64	$	27

No additional funds are committed to be advanced in connection with impaired loans.

Troubled Debt Restructurings

The Company periodically grants concessions to borrowers experiencing financial difficulties. The Company’s troubled debt restructurings consist primarily of interest rate concessions for periods of three months to thirty years for residential real estate loans, and for periods up to one year for commercial real estate loans.

At June 30, 2018, the Company had seventeen residential real estate loans and two commercial real estate loans aggregating $3,681,000 and $87,000, respectively, which were subject to troubled debt restructuring agreements.

At June 30, 2017, the Company had nineteen residential real estate loans and three commercial real estate loans aggregating $4,449,000 and $553,000, respectively, which were subject to troubled debt restructuring agreements.

As of June 30, 2018 and 2017, $3,589,000 and $4,006,000, respectively, in troubled debt restructurings were performing in accordance with the terms of the modified loan agreements.  Included in such amounts are $179,000 and $997,000, respectively, that are being accounted for as non-accrual loans.

For the six months ended June 30, 2018 and 2017, the Company did not enter into any loan modifications meeting the criteria of a troubled debt restructuring.

Management performs a discounted cash flow calculation to determine the amount of valuation reserve required on each of the troubled debt restructurings.  Any reserve required is recorded as part of the allowance for loan losses. During the three and six months ended June 30, 2018 and 2017, there were no material changes to the allowance for loan losses as a result of loan modifications made which were considered a troubled debt restructuring.

During the three and six months ended June 30, 2018 and 2017, there were no troubled debt restructurings that defaulted (over 30 days past due) within twelve months of the restructure date.

Credit Quality Information

The Company utilizes an eight-grade internal loan rating system for commercial real estate, construction and commercial loans, as follows:

Loans rated 1 – 3B are considered “pass” rated loans with low to average risk.

Loans rated 4 are considered “special mention.”  These loans are starting to show signs of potential weakness and are being closely monitored by management.

Loans rated 5 are considered “substandard” and are inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged.  There is a distinct possibility that the Company will sustain some loss if the weakness is not corrected.

Loans rated 6 are considered “doubtful” and have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

Loans rated 7 are considered uncollectible (“loss”) and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial and industrial loans.  Annually, the Company engages an independent third party to review a significant portion of loans within these segments.  Management uses the results of these reviews as part of its annual review process.

The following table presents the Company’s loans by risk rating at the dates indicated:

	June 30, 2018						December 31, 2017
	Commercial RealEstate		Construction		Commercial and Industrial		Commercial RealEstate		Construction		Commercial and Industrial
	(In thousands)
Loans rated 1 - 3B (Pass rated)	$	107,575	$	27,173	$	20,649	$	101,556	$	25,357	$	21,766
Loans rated 4		—		—		—		—		—		—
Loans rated 5		195		—		—		199		—		—
	$	107,770	$	27,173	$	20,649	$	101,755	$	25,357	$	21,766

Residential mortgages, home equity loans and lines of credit, and consumer loans are monitored for credit quality based primarily on their payment status. When one of these loans becomes more than 90 days delinquent it is assigned an internal loan rating.  At June 30, 2018, $62,000 in consumer loans were rated as doubtful, $702,000 in residential mortgages were rated as substandard, and $2,362,000 in residential mortgages and $243,000 in home equity loans were rated as special mention. At December 31, 2017, $712,000 in residential mortgages were rated as substandard, and $2,512,000 in residential mortgages and $247,000 in home equity loans were rated as special mention.  

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Loan Servicing

6 Months Ended

Jun. 30, 2018

Transfers And Servicing [Abstract]

Loan Servicing

6. LOAN SERVICING

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of residential mortgage loans serviced for others were $823,280,000 and $771,407,000 at June 30, 2018 and December 31, 2017, respectively.

The following table summarizes the activity relating to mortgage servicing rights for the six months ended June 30, 2018 and 2017 (in thousands):

	June 30, 2018			June 30, 2017
Mortgage servicing rights:
Balance at beginning of year	$	6,487		$	8,910
Additions through originations		851			946
Amortization		(480	)		(671	)
Balance at end of period	$	6,858		$	9,185
Valuation allowance:
Balance at beginning of year	$	90		$	424
Provision (credit)		(77	)		(231	)
Balance at end of period	$	13		$	193
Amortized cost, net	$	6,845		$	8,992
Fair value	$	7,380		$	9,014

During the six months ended June 30, 2018 and 2017, the Company decreased the valuation allowance for its mortgage servicing rights by $77,000 and $231,000, respectively, due to an increase in fair value caused by lower expected loan prepayments.

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Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

7. INCOME TAXES

During the six months ended June 30, 2018 and 2017, the Company recorded a deferred income tax benefit of $0 and $280,000, respectively, and current state tax expense of $9,000 and $3,000, respectively. The deferred income tax benefit for the 2017 period resulted from, and was limited to, an offsetting tax provision attributable to other comprehensive income, specifically, appreciation in the fair value of available-for-sale securities.

Since 2014, the Company has maintained a valuation allowance for all of its net deferred tax assets based on a determination that it was more likely than not that such assets would not be realized. This determination was based on the Company’s net operating loss (“NOL”) carryforward position, its current period operating results exclusive of non-recurring items and its expectations for the upcoming year. In performing subsequent assessments, management has concluded that no significant changes in the key factors affecting the realizability of the deferred tax asset has occurred and that a valuation allowance for its net deferred tax assets should be maintained.

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On-Balance Sheet Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

On-Balance Sheet Derivative Instruments and Hedging Activities

8. ON-BALANCE SHEET DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Derivative Loan Commitments

Mortgage loan commitments qualify as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding.  The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market.

Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to an increase in mortgage interest rates.  If interest rates increase, the value of these loan commitments decreases.  Conversely, if interest rates decrease, the value of these loan commitments increases.  The notional amount of derivative loan commitments was $37,857,000 and $24,222,000 at June 30, 2018 and December 31, 2017, respectively.  The fair value of certain of these commitments was an asset of $486,000 and $363,000 as of June 30, 2018 and December 31, 2017, respectively, and is included in other assets in the consolidated balance sheets while the fair value of the other commitments was a liability of $4,000 at June 30, 2018 and is included in other liabilities in the consolidated balance sheet.

Forward Loan Sale Commitments

The Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments.

With a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date.  If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor to compensate the investor for the shortfall.

With a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g. on the same day the lender commits to lend funds to a potential borrower).

The Company expects that these forward loan sale commitments will experience inverse changes in fair value to the change in fair value of derivative loan commitments. The notional amount of forward loan sale commitments was $41,137,000 and $29,613,000 at June 30, 2018 and December 31, 2017, respectively. The fair value of certain of these commitments was an asset of $23,000 and $4,000 at June 30, 2018 and December 31, 2017, respectively, and is included in other assets in the consolidated balance sheets while the fair value of other such commitments was a liability of $137,000 and $19,000 at June 30, 2018 and December 31, 2017, respectively, and is included in other liabilities in the consolidated balance sheets.

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Employee Stock Ownership Plan

6 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Employee Stock Ownership Plan

9. EMPLOYEE STOCK OWNERSHIP PLAN

The Company maintains an Employee Stock Ownership Plan (“ESOP”), which is a tax-qualified retirement plan providing eligible employees the opportunity to own Bancorp stock. Bancorp granted a loan to the ESOP for the purchase of 469,498 shares of its common stock at $10.00 per share. The loan is payable annually over 25 years with interest at the prime rate to be reset each January 1st. The loan is secured by the shares which have not yet been allocated to participants. Loan payments are funded by cash contributions from the Bank. Such contributions are allocated to eligible participants based on their compensation, subject to federal tax limits.

Shares are committed to be released on a monthly basis and allocated as of December 31st of each year. The number of shares to be allocated annually is 18,780 through the year 2040. For the three and six months ended June 30, 2018, the Company recognized compensation expense for the ESOP of $77,000 and $151,000, respectively, while for the three and six months ended June 30, 2017, the Company recognized compensation expense for the ESOP of $76,000 and $145,000, respectively. The fair value of the 422,548 unallocated ESOP shares at June 30, 2018 was $7,099,000.

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Share Repurchase Program

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Share Repurchase Program

10. SHARE REPURCHASE PROGRAM

In September 2017, the Company’s Board of Directors adopted a share repurchase program under which the Company may repurchase up to 10%, or 586,854 shares of its then outstanding common shares. Repurchases under the program may be made in open market or in privately negotiated transactions and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the SEC. Any repurchased shares will be held by the Company as authorized but unissued shares. The repurchase program may be suspended or terminated at any time without prior notice, and it will expire on September 14, 2018. As of June 30, 2018, the Company had repurchased 47,500 shares at a cost of $748,000 in connection with this program.

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Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

11. EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share represents net income (loss) divided by the weighted average of common shares outstanding during the period. Unvested restricted shares of common stock having dividend rights are treated as “participating securities” and, accordingly, are considered outstanding in computing basic earnings (loss) per share. Unallocated ESOP shares are not considered to be outstanding for purposes of computing earnings per share. None of the Company’s 325,707 outstanding stock options were included in the computation of diluted earnings (loss) per share for the three and six months ended June 30, 2018. Due to the net loss for these periods, inclusion of the stock options in the computation would have been anti-dilutive.

The following table sets forth the calculation of the average number of shares outstanding used to calculate the basic and diluted loss per share for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Average number of common shares outstanding		6,005,578			5,868,709			6,021,802			5,868,717
Less: Average unallocated ESOP shares		(424,895	)		(443,676	)		(427,243	)		(446,023	)
		5,580,683			5,425,033			5,594,559			5,422,694

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

12. STOCK-BASED COMPENSATION

Under the Randolph Bancorp, Inc. 2017 Stock Option and Incentive Plan (the “Equity Plan”), the Company may grant options, restricted stock, restricted units or performance awards to its directors, officers and employees. Both incentive stock options and nonqualified stock options may be granted under the Equity Plan with 586,872 shares reserved for options. The exercise price of each option equals the market price of the Company’s stock on the date of the grant and the maximum term of each options is 10 years. The total number of shares reserved for restricted stock is 234,749. Options and awards generally vest ratably over five years. The fair value of shares awarded is based on the market price at the date of grant.

Stock Options

The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions:

• Volatility is based on peer group volatility because the Company does not have a sufficient trading history.

• Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, and the vesting period.

• Expected dividend yield is based on the Company's history and expectation of dividend payouts.

• The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option.

During the six months ended June 30, 2018, the Company granted options to purchase 27,000 shares of common stock and used the following assumptions in measuring the fair value of such grants:

Vesting period (years)	3-5
Expiration period (years)		10
Expected volatility		29.87	%
Expected life (years)		6.5
Expected dividend yield		—
Risk free interest rate	2.68% - 2.77%
Option fair value	$	5.79

A summary of stock option activity for the six months ended June 30, 2018 is presented in the table below:

Options	Stock Option Grants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance at December 31, 2017		316,009		$	14.66		9.78	$	219,374
Granted		27,000			16.15		10.00		—
Forfeited		(17,302	)		14.74		—		—
Balance at June 30, 2018 (all non-vested)		325,707		$	14.78		9.32	$	658,208
Exercisable at June 30, 2018		—		$	—		—		—
Unrecognized compensation cost	$	1,299,000
Weighted average remaining recognition period    (years)		4.12

For the three and six months ended June 30, 2018, stock-based compensation expense applicable to stock options was $71,000 and $145,000, respectively.

Restricted Stock

Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company. Any shares not issued because vesting requirements are not met will again be available for issuance under the Equity Plan. The fair market value of shares awarded, based on the market price at the date of grant, is recorded as unearned compensation and amortized over the applicable vesting period. Restricted stock awarded in 2017 was at no cost to the awardee. The following table presents the activity in restricted stock awards under the Equity Plan for the six months ended June 30, 2018:

	Restricted Stock Awards			Weighted Average Grant Price
Restricted stock awards at December 31, 2017		176,239		$	14.66
Granted		—			—
Forfeited		(7,042	)		14.66
Restricted stock awards at June 30, 2018 (all non-vested)		169,197		$	14.66
Unrecognized compensation cost	$	2,116,000
Weighted average remaining recognition period (years)		4.18

For the three and six months ended June 30, 2018, stock-based compensation expense applicable to restricted stock was $109,000 and $242,000, respectively.

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Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

13. FAIR VALUE OF ASSETS AND LIABILITIES

Determination of fair value

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.  Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  Fair value is best determined based upon quoted market prices.  However, in many instances, there are no quoted market prices for the Company’s various assets and liabilities.  In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability.

The following methods and assumptions were used by the Company in estimating fair value disclosures:

Cash and cash equivalents – The carrying amounts of cash and short-term instruments approximate fair values based on the short-term nature of the assets.

Certificates of deposit – Certificates of deposit are carried at cost. These assets are measured at fair value in level 2 based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data.

Securities – All fair value measurements are obtained from a third-party pricing service and are not adjusted by management.  The securities measured at fair value in Level 1 (none at June 30, 2018 and December 31, 2017) are based on quoted market prices in an active exchange market.  Securities measured at fair value in Level 2 are based on pricing models that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data.

Federal Home Loan Bank of Boston (“FHLBB”) stock – It is not practical to determine the fair value of FHLBB stock due to restrictions on its transferability.

Loans held for sale – Fair values are based on commitments in effect from investors or prevailing market prices and include the servicing value of the loans.

Loans – For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.  Fair values for other loans are estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.  Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Included in loans are certain loans which were transferred from loans held for sale. These loans, which are accounted for using the fair value option, continue to be accounted for subsequent to transfer at fair value.

Mortgage servicing rights – Fair value is based on a valuation model that calculates the present value of estimated future net servicing income, using various assumptions related to fees, discount rates and prepayment speeds.

Deposit liabilities – The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts).  Fair values for fixed-rate term certificates are estimated using a discounted cash flow calculation that applies market interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities.

FHLBB advances - The fair values of the Company’s FHLBB advances are estimated using discounted cash flow analyses based on the current incremental borrowing rates in the market for similar types of borrowing arrangements.

Accrued interest - The carrying amounts of accrued interest approximate fair value.

On-balance-sheet derivatives - Fair values of forward loan sale commitments and derivative loan commitments are based on fair values of the underlying mortgage loans based on current market prices for similar assets in the secondary market. For derivative loan commitments, fair values also include the value of servicing, deferred origination fees/costs and the probability of such commitments being exercised.

Off-balance sheet credit-related instruments - Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing.  The fair values of these instruments are not material.

Assets and liabilities measured at fair value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

							Total
	Level 1		Level 2		Level 3		FairValue
	(In thousands)
June 30, 2018
Assets:
Securities available for sale:
Debt securities	$	—	$	56,036	$	—	$	56,036
Mutual fund		—		518		—		518
Loans held for sale		—		36,661		—		36,661
Loans held for investment		—		—		1,922		1,922
Derivative loan commitments		—		486		—		486
Forward loan sale commitments		—		23		—		23
Liabilities:
Derivative loan commitments		—		4		—		4
Forward loan sale commitments		—		137		—		137
December 31, 2017
Assets:
Securities available for sale:
Debt securities	$	—	$	61,043	$	—	$	61,043
Mutual fund		—		533		—		533
Loans held for sale		—		25,390		—		25,390
Loans held for investment		—		—		6,412		6,412
Derivative loan commitments		—		363		—		363
Forward loan sale commitments		—		4		—		4
Liabilities:
Forward loan sale commitments		—		19		—		19

Assets measured at fair value on a non-recurring basis

The Company may also be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with U.S. generally accepted accounting principles.  These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets.  The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets as of June 30, 2018 and December 31, 2017.

							Period Ended
	June 30, 2018						June 30, 2018
	Level 1		Level 2		Level 3		Total Gains (Losses)
	(In thousands)
Collateral dependent
impaired loans	$	—	$	—	$	1,255	$	—
Mortgage servicing rights		—		6,845		—		77
Assets held for sale		—		—		402		—
Foreclosed real estate		—		—		193		—
	$	—	$	6,845	$	1,850	$	77
	December 31, 2017
	Level 1		Level 2		Level 3
	(In thousands)
Collateral dependent
impaired loans	$	—	$	—	$	1,630
Mortgage servicing rights		—		6,397		—
Assets held for sale		—		—		828
Foreclosed real estate		—		—		193
	$	—	$	6,397	$	2,651

The Company recorded a partial reversal of the valuation allowance for its mortgage servicing rights of $77,000 during the six months ended June 30, 2018, due to increases in fair value caused by lower expected loan prepayments.

During the six months ended June 30, 2018, the Company sold the property which had been occupied by its former North Randolph branch office and which had been classified with assets held for sale. This sale was completed at the carrying value of this property and, accordingly, no gain of loss was recognized.

There were no liabilities measured at fair value on a non-recurring basis at June 30, 2018 and December 31, 2017.

Summary of fair values of financial instruments

The estimated fair values, and related carrying amounts, of the Company’s financial instruments are presented below.  Certain financial instruments and all non-financial instruments are exempt from disclosure requirements.  Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include mortgagors’ escrow accounts and accrued interest payable.

	June 30, 2018
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Financial assets:
Certificates of deposit	$	2,695	$	2,676	$	—	$	2,676	$	—
Securities available for sale		56,554		56,554		—		56,554		—
Loans held for sale		36,661		36,661		—		36,661		—
Loans, net		427,703		418,040		—		—		418,040
Derivative assets		509		509		—		509		—
Financial liabilities:
Deposits	$	422,899	$	421,391	$	—	$	421,391	$	—
FHLBB advances		56,680		56,486		—		56,486		—
Derivative liabilities		141		141		—		141		—

	December 31, 2017
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Financial assets:
Certificates of deposit	$	2,940	$	2,932	$	—	$	2,932	$	—
Securities available for sale		61,576		61,576		—		61,576		—
Loans held for sale		25,390		25,390		—		25,390		—
Loans, net		400,373		398,407		—		—		398,407
Derivative assets		367		367		—		367		—
Financial liabilities:
Deposits	$	366,836		365,997	$	—	$	365,997	$	—
FHLBB advances		75,954		75,821		—		75,821		—
Derivative liabilities		19		19		—		19		—

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

14. COMMITMENTS AND CONTINGENCIES

Loan commitments

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of market, credit and interest rate risk which are not recognized in the consolidated financial statements.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

The following financial instruments were outstanding, at the dates indicated, whose contract amounts represent credit risk:

	June 30, 2018		December 31, 2017
	(In thousands)
Commitments to originate loans	$	48,461	$	35,549
Unused lines and letters of credit		43,290		39,968
Unadvanced funds on construction loans		10,870		6,967
Overdraft lines of credit		8,767		8,996

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The majority of these financial instruments are collateralized by real estate.

Other contingencies

The Company is not currently a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, results of operations or cash flows.

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Segment Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Information

15. SEGMENT INFORMATION

Effective January 1, 2018, management began reporting its activities in one of two business segments, namely Envision Bank (“EB”) and Envision Mortgage (“EM”). Comparative information for the 2017 period has been prepared on a basis consistent with the methodology used in 2018. Envision Bank operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s six full service branch offices and investing those funds in residential and commercial real estate loans, home equity lines of credit, construction loans, commercial and industrial loans, and consumer loans. Envision Mortgage’s operations primarily consist of the origination and sale of residential mortgage loans and the servicing of loans sold to government-sponsored entities. A portion of the loans originated by Envision Mortgage are held in the loan portfolio of Envision Bank.

Segment information as of and for the three and six months ended June 30, 2018 follows:

	For the Three Months Ended June 30, 2018
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	3,800		$	233		$	4,033
Provision for loan losses		(90	)		—			(90	)
Net interest income after provision for loan losses		3,890			233			4,123
Non-interest income:
Customer service fees		410			29			439
Gain on loan origination and sale activities, net (1)		—			2,265			2,265
Mortgage servicing fees, net		(73	)		364			291
Other		114			85			199
Total non-interest income		451			2,743			3,194
Non-interest expenses:
Salaries and employee benefits		1,612			3,367			4,979
Occupancy and equipment		373			356			729
Other non-interest expenses		1,227			977			2,204
Total non-interest expenses		3,212			4,700			7,912
Income (loss) before income taxes and elimination of intercompany profit	$	1,129		$	(1,724	)		(595	)
Elimination of intercompany profit								(411	)
Loss before income taxes								(1,006	)
Income tax expense								4
Net loss							$	(1,010	)
Total assets, June 30, 2018	$	489,214		$	76,695		$	565,909

	For the Six Months Ended June 30, 2018
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	7,539		$	476		$	8,015
Provision for loan losses		5			—			5
Net interest income after provision for loan losses		7,534			476			8,010
Non-interest income:
Customer service fees		711			28			739
Gain on loan origination and sale activities, net (1)		—			4,085			4,085
Mortgage servicing fees, net		(141	)		766			625
Other		248			177			425
Total non-interest income		818			5,056			5,874
Non-interest expenses:
Salaries and employee benefits		3,248			6,167			9,415
Occupancy and equipment		773			654			1,427
Other non-interest expenses		2,238			1,829			4,067
Total non-interest expenses		6,259			8,650			14,909
Income (loss) before income taxes and elimination of intercompany profit	$	2,093		$	(3,118	)		(1,025	)
Elimination of intercompany profit								(684	)
Loss before income taxes								(1,709	)
Income tax expense								8
Net loss							$	(1,717	)

(1) Before elimination of intercompany profit

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

The Company’s internal transfer pricing arrangements determined by management primarily consist of the following:

1. EM’s cost of funds is based on the weighted average rate of overnight advances from the FHLBB for the period.

2. EM is credited with service released premiums and a sales premium totaling 1.50% for new loans transferred to EB’s loans held for investment, and a 1.00% fee for HELOC originations. This income for the three and six months ended June 30, 2018 totaled $411,000 and $684,000, respectively.

3. Loan servicing fees are charged to EB by EM based on the number of residential mortgage loans held in portfolio at a rate of 0.14% per annum and amounted to $73,000 and $141,000 for the three and six months ended June 30, 2018, respectively.

4. Certain cost centers provide services to both business segments. The cost centers include Finance, Marketing, IT and Administration. Costs which are common to both business segments are referred to as “indirect costs” and are allocated using relevant benchmarks, e.g. headcount, number of accounts, etc.

Segment information as of and for the three and six months ended June 30, 2017 follows:

	For the Three Months Ended June 30, 2017
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	3,425		$	265		$	3,690
Provision for loan losses		100			—			100
Net interest income after provision for loan losses		3,325			265			3,590
Non-interest income:
Customer service fees		336			42			378
Gain on loan origination and sale activities, net (1)		—			2,780			2,780
Mortgage servicing fees, net		(61	)		351			290
Other		213			33			246
Total non-interest income		488			3,206			3,694
Non-interest expenses:
Salaries and employee benefits		1,642			3,073			4,715
Occupancy and equipment		325			294			619
Merger and integration costs		—			357			357
Other non-interest expenses		818			919			1,737
Total non-interest expenses		2,785			4,643			7,428
Income (loss) before income taxes and elimination of intercompany profit	$	1,028		$	(1,172	)		(144	)
Elimination of intercompany profit								(260	)
Loss before income taxes								(404	)
Income tax benefit								(254	)
Net loss							$	(150	)
Total assets, June 30, 2017	$	435,775		$	72,164		$	507,939

	For the Six Months Ended June 30, 2017
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	6,649		$	525		$	7,174
Provision for loan losses		335			—			335
Net interest income after provision for loan losses		6,314			525			6,839
Non-interest income:
Customer service fees		708			42			750
Gain on loan origination and sale activities, net (1)		—			4,992			4,992
Mortgage servicing fees, net		(122	)		1,072			950
Other		491			95			586
Total non-interest income		1,077			6,201			7,278
Non-interest expenses:
Salaries and employee benefits		3,236			6,155			9,391
Occupancy and equipment		672			603			1,275
Merger and integration costs		19			505			524
Other non-interest expenses		1,757			1,610			3,367
Total non-interest expenses		5,684			8,873			14,557
Income (loss) before income taxes and elimination of intercompany profit	$	1,707		$	(2,147	)		(440	)
Elimination of intercompany profit								(434	)
Loss before income taxes								(874	)
Income tax benefit								(277	)
Net loss							$	(597	)

(1) Before elimination of intercompany profit

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

The Company’s internal transfer pricing arrangements determined by management primarily consist of the following:

1. EM’s cost of funds is based on the weighted average rate of overnight advances from the FHLBB for the period.

2. EM is credited with service released premiums and a sales premium totaling 1.50% for new loans transferred to EB’s loans held for investment, and a 1.00% fee for HELOC originations. This income for the three and six months ended June 30, 2017 totaled $260,000 and $434,000, respectively.

3. Loan servicing fees are charged to EB by EM based on the number of residential mortgage loans held in portfolio at a rate of 0.14% per annum and amounted to $61,000 and $122,000 for the three and six months ended June 30, 2017, respectively.

4. Certain cost centers provide services to both business segments. The cost centers include Finance, Marketing, IT and Administration. Costs which are common to both business segments are referred to as “indirect costs” and are allocated using relevant benchmarks, e.g. headcount, number of accounts, etc.

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Subsequent Event

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

16. SUBSEQUENT EVENT

On July 31, 2018, the Company entered into a sublease agreement for 27% of the area occupied by the Andover loan operations center. This sublease runs co-terminus with the initial term of the Company’s lease which ends in March 2023 and provides for total rental income of approximately $400,000. Occupancy is expected to begin by September 2018 and is subject to approval by the building’s landlord. Based on the terms of this sublease agreement, the Company recognized an estimated loss of $60,000 as of June 30, 2018.

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Basis of Financial Statement Presentation (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Financial Statement Presentation

The consolidated financial statements include the accounts of Randolph Bancorp, Inc. (“Bancorp”) and its wholly-owned subsidiary, Envision Bank (the “Bank”, together with Bancorp, the “Company”). The Bank has subsidiaries involved in owning investment securities and foreclosed real estate properties and a subsidiary which provides loan closing services. All intercompany accounts and transactions have been eliminated in consolidation.

These financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying interim financial statements do not include all information required under GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, primarily consisting of normal recurring adjustments, have been included. The operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or any other interim period.

Prior to 2018, the Company’s operations were managed, and financial performance was evaluated, by the chief operating decisionmaker on a company-wide basis. As a result, management had determined there to be a single business segment for financial reporting purposes through December 31, 2017. Due to the significance of the Company’s mortgage banking operations and its strategic focus on this business, management prepared its 2018 operating budget by breaking-out its mortgage banking activities, including residential loan origination and loan servicing. As a result, effective January 1, 2018, the Company is reporting two business segments, namely, “Envision Bank” and “Envision Mortgage”. As part of this process, management analyzed costs incurred by departments providing services to both segments (indirect costs), such as IT, Marketing, Accounting and Administration, to determine the allocation of indirect costs to each business segment in order to fully measure each segment’s results of operations. See Note 15 for disclosure of the Company’s segment information.

For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC.

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Recent Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. This Update provides a revenue recognition framework for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other accounting standards. This ASU, as amended by ASU 2015-14, is effective for emerging growth companies in fiscal years beginning after December 15, 2018, including interim periods therein with early adoption permitted. The timing of the Company’s revenue recognition is not expected to materially change. The Company's revenue relates principally to financial instruments, which are explicitly excluded from the scope of the new guidance. Management continues to evaluate the potential impact of this ASU on the Company’s consolidated financial statements but does not anticipate, at this time, that adoption of this standard will have a significant impact.

In January 2016, FASB issued ASU 2016-01, Financial Instruments. This ASU revises the accounting related to the classification and measurement of investments in equity securities, and the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU is effective for emerging growth companies for annual periods beginning after December 31, 2018, including interim periods therein. The Company is currently assessing the impact of this ASU on the consolidated financial statements.

In February 2016, FASB issued ASU 2016-02, Leases. This ASU requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current accounting requirements. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for emerging growth companies in fiscal years beginning after December 15, 2019, including interim periods therein. Earlier adoption is permitted. The Company is currently assessing the impact of the adoption of this ASU on its consolidated balance sheet.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses. The ASU sets forth a “current expected credit loss” (“CECL”) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This replaces the existing probable incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgements used in determining the allowance for loan losses, as well as the credit quality and underwriting standards of an organization’s loan portfolio. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. This ASU is effective for emerging growth companies in fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption is permitted in fiscal years beginning after December 31, 2018. The Company is currently assessing its data and system needs and is evaluating the impact of the adoption of this ASU on the consolidated financial statements.

In April 2017, the FASB issued ASU 2017-08 Receivables – Non-refundable Fees and Other Costs, which shortens the period of amortization of the premium on certain callable debt securities to the earliest call date. Currently, generally accepted accounting principles (“GAAP”) excludes certain callable debt securities from consideration of early repayment of principal even if the holder is certain that the call will be exercised. As a result, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium is recorded as a loss in earnings. This ASU requires that premiums on certain callable debt securities be amortized to the shortest call date. Securities within the scope of this paragraph are those that have explicit, noncontingent call features that are callable at fixed prices and on preset dates. This ASU is effective for emerging growth companies for annual periods beginning after December 15, 2019, including interim periods therein. Early adoption is permitted, including adoption in an interim period. The impact of adopting this ASU is dependent on the materiality of callable debt securities at the time of adoption.

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss and Related Tax Effects

The components of accumulated other comprehensive loss, included in total stockholders’ equity, are as follows:

	June 30,			December 31,
	2018			2017
	(In thousands)
Securities available for sale:
Net unrealized loss	$	(1,900	)	$	(624	)
Tax effect		(313	)		(313	)
Net-of-tax amount		(2,213	)		(937	)
Supplemental retirement plan
Unrecognized net actuarial loss		(649	)		(667	)
Unrecognized net prior service credit		442			484
		(207	)		(183	)
Tax effect		(47	)		(47	)
Net-of-tax amount		(254	)		(230	)
Accumulated other comprehensive loss	$	(2,467	)	$	(1,167	)

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Securities Available for Sale (Tables)

6 Months Ended

Jun. 30, 2018

Investments Debt And Equity Securities [Abstract]

Schedule of amortized cost and fair value of securities

The amortized cost and fair value of securities available for sale, including gross unrealized gains and losses, are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
June 30, 2018
Debt securities:
U.S. Government-sponsored enterprises	$	3,999	$	17	$	(42	)	$	3,974
Corporate		1,529		8		(21	)		1,516
Municipal		2,020		33		—			2,053
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		27,154		50		(944	)		26,260
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		14,336		—		(749	)		13,587
U.S. Government-guaranteed		1,826		—		(39	)		1,787
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		1,738		—		(41	)		1,697
U.S. Government-guaranteed		5,307		—		(145	)		5,162
Total debt securities		57,909		108		(1,981	)		56,036
Mutual fund		545		—		(27	)		518
Total securities available for sale	$	58,454	$	108	$	(2,008	)	$	56,554
December 31, 2017
Debt securities:
U.S. Government-sponsored enterprises	$	3,999	$	50	$	(24	)	$	4,025
Corporate		2,005		27		(8	)		2,024
Municipal		12,707		179		(18	)		12,868
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		18,729		118		(450	)		18,397
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		14,451		13		(403	)		14,061
U.S. Government-guaranteed		2,132		—		(6	)		2,126
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		1,871		12		(5	)		1,878
U.S. Government-guaranteed		5,760		4		(100	)		5,664
Total debt securities		61,654		403		(1,014	)		61,043
Mutual fund		545		—		(12	)		533
Total securities available for sale	$	62,199	$	403	$	(1,026	)	$	61,576

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2018 are presented below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
	Cost		Value
	(In thousands)
Within 1 year	$	530	$	532
After 1 year through 5 years		6,179		6,157
After 5 years through 10 years		839		854
		7,548		7,543
Mortgage-backed securities		50,361		48,493
	$	57,909	$	56,036

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	LessThan Twelve Months					Over Twelve Months
	Gross					Gross
	Unrealized			Fair		Unrealized			Fair
	Losses			Value		Losses			Value
June 30, 2018	(In thousands)
Debt securities:
U.S. Government-sponsored enterprises	$	—		$	—	$	(42	)	$	1,958
Corporate		(6	)		496		(15	)		506
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		(101	)		11,960		(843	)		11,977
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		(71	)		5,113		(678	)		8,474
U.S. Government-guaranteed		(39	)		1,787		—			—
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		(41	)		1,697		—			—
U.S. Government-guaranteed		(26	)		1,687		(119	)		3,475
Total debt securities		(284	)		22,740		(1,697	)		26,390
Mutual Fund		—			—		(27	)		518
	$	(284	)	$	22,740	$	(1,724	)	$	26,908
December 31, 2017
Debt securities:
U.S. Government-sponsored enterprises	$	—		$	—	$	(24	)	$	19,676
Corporate		—			—		(8	)		988
Municipal		(11	)		1,919		(7	)		479
Residential mortgage-backed securities:
U.S. Government-sponsored enterprises		(1	)		1,623		(449	)		13,163
Commercial mortgage-backed securities:
U.S. Government-sponsored enterprises		—			—		(403	)		8,805
U.S. Government-guaranteed		(6	)		2,126		—			—
Collateralized mortgage obligations:
U.S. Government-sponsored enterprises		(5	)		678		—			—
U.S. Government-guaranteed		(1	)		295		(99	)		3,756
Total debt securities		(24	)		6,641		(990	)		46,867
Mutual Fund		—			—		(12	)		533
	$	(24	)	$	6,641	$	(1,002	)	$	47,400

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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Summary of Loans Held for Investment at Dates Indicated

A summary of loans held for investment at the dates indicated is as follows:

	June 30, 2018			December 31, 2017
	(In thousands)
Mortgage loans on real estate:
Residential:
One-to-four family	$	217,844		$	198,475
Home equity loans and lines of credit		41,084			38,968
Commercial		107,770			101,755
Construction		27,173			25,357
		393,871			364,555
Commercial and industrial		20,649			21,766
Consumer		15,390			16,337
Total loans		429,910			402,658
Allowance for loan losses		(3,742	)		(3,737	)
Net deferred loan costs and fees, and purchase premiums		1,535			1,452
	$	427,703		$	400,373

Summary of Changes in the Allowance for Loan Losses by Portfolio Segment

The following table summarizes the changes in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2018 and 2017:

				Second
	Residential			Mortgages			Commercial					Commercial
	1-4 Family			andHELOC			Real Estate			Construction		and Industrial			Consumer			Total
	(In thousands)
Three Months Ended June 30, 2018
Allowance at March 31, 2018	$	876		$	365		$	1,700		$	386	$	319		$	198		$	3,844
Provision (credit) for loan losses		88			(85	)		(195	)		57		(21	)		66			(90	)
Loans charged-off		—			—			—			—		—			(22	)		(22	)
Recoveries		5			—			—			—		—			5			10
Balance at June 30, 2018	$	969		$	280		$	1,505		$	443	$	298		$	247		$	3,742
Three Months Ended June 30, 2017
Allowance at March 31, 2017	$	821		$	395		$	1,519		$	351	$	195		$	156		$	3,437
Provision (credit) for loan losses		(9	)		(57	)		17			38		47			64			100
Loans charged-off		—			—			—			—		—			(32	)		(32	)
Recoveries		8			—			—			—		34			10			52
Balance at June 30, 2017	$	820		$	338		$	1,536		$	389	$	276		$	198		$	3,557
Six Months Ended June 30, 2018
Allowance at December 31, 2017	$	854		$	359		$	1,620		$	351	$	335		$	218		$	3,737
Provision (credit) for loan losses		85			(79	)		(115	)		92		(37	)		59			5
Loans charged-off		—			—			—			—		—			(37	)		(37	)
Recoveries		30			—			—			—		—			7			37
Balance at June 30, 2018	$	969		$	280		$	1,505		$	443	$	298		$	247		$	3,742
Six Months Ended June 30, 2017
Allowance at December 31, 2016	$	1,018		$	436		$	1,410		$	225	$	37		$	145		$	3,271
Provision (credit) for loan losses		(210	)		(98	)		126			164		204			149			335
Loans charged-off		—			—			—			—		—			(109	)		(109	)
Recoveries		12			—			—			—		35			13			60
Balance at June 30, 2017	$	820		$	338		$	1,536		$	389	$	276		$	198		$	3,557

Summary of Additional Information Pertaining to the Allowance for Loan Losses

Additional information pertaining to the allowance for loan losses at June 30, 2018 and December 31, 2017 is as follows:

			Second
	Residential		Mortgages		Commercial				Commercial
	1-4 Family		andHELOC		Real Estate		Construction		and Industrial		Consumer		Total
June 30, 2018	(In thousands)
Allowance for impaired loans	$	103	$	—	$	—	$	—	$	—	$	—	$	103
Allowance for non-impaired loans		866		280		1,505		443		298		247		3,639
Total allowance for loan losses	$	969	$	280	$	1,505	$	443	$	298	$	247	$	3,742
Impaired loans	$	4,802	$	243	$	294	$	—	$	—	$	—	$	5,339
Non-impaired loans		213,042		40,841		107,476		27,173		20,649		15,390		424,571
Total loans	$	217,844	$	41,084	$	107,770	$	27,173	$	20,649	$	15,390	$	429,910
December 31, 2017
Allowance for impaired loans	$	160	$	1	$	1	$	—	$	—	$	—	$	162
Allowance for non-impaired loans		694		358		1,619		351		335		218		3,575
Total allowance for loan losses	$	854	$	359	$	1,620	$	351	$	335	$	218	$	3,737
Impaired loans	$	5,205	$	276	$	352	$	—	$	—	$	—	$	5,833
Non-impaired loans		193,270		38,692		101,403		25,357		21,766		16,337		396,825
Total loans	$	198,475	$	38,968	$	101,755	$	25,357	$	21,766	$	16,337	$	402,658

Schedule of Past Due and Non-Accrual Loans

The following is a summary of past due and non-accrual loans at June 30, 2018 and December 31, 2017:

	30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total Past Due		Non-accrual Loans
	(In thousands)
June 30, 2018
Residential one-to-four family	$	—	$	673	$	635	$	1,308	$	1,570
Home equity loans and lines of credit		—		11		—		11		243
Commercial real estate		335		—		—		335		—
Construction		—		—		—		—		—
Commercial and industrial		—		—		—		—		—
Consumer		—		—		—		—		62
Total	$	335	$	684	$	635	$	1,654	$	1,875
December 31, 2017
Residential one-to-four family	$	737	$	—	$	—	$	737	$	1,975
Home equity loans and lines of credit		96		—		—		96		276
Commercial real estate		—		—		—		—		—
Construction		—		—		—		—		—
Commercial and industrial		—		—		—		—		—
Consumer		—		—		—		—		—
Total	$	833	$	—	$	—	$	833	$	2,251

Summary of Impaired Loans and Additional Information Pertaining to Impaired Loans

The following is a summary of impaired loans at June 30, 2018 and December 31, 2017:

	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
June 30, 2018
Impaired loans without a valuation allowance:
Residential one-to-four family	$	2,589	$	2,548
Home equity loans and lines of credit		243		243
Commercial real estate		294		294
Total		3,126		3,085
Impaired loans with a valuation allowance:
Residential one-to-four family		2,269		2,254	$	103
Total impaired loans	$	5,395	$	5,339	$	103
December 31, 2017
Impaired loans without a valuation allowance:
Residential one-to-four family	$	2,685	$	2,641
Home equity loans and lines of credit		247		247
Commercial real estate		257		257
Total		3,189		3,145
Impaired loans with a valuation allowance:
Residential one-to-four family		2,584		2,564	$	160
Home equity loans and lines of credit		29		29		1
Commercial real estate		95		95		1
Total		2,708		2,688		162
Total impaired loans	$	5,897	$	5,833	$	162

Additional information pertaining to impaired loans follows:

	Average		Interest		Cash Basis
	Recorded		Income		Interest
	Investment		Recognized		Recognized
	(In thousands)
Six Months Ended June 30, 2018
Residential one-to-four family	$	4,965	$	116	$	40
Home equity loans and lines of credit		262		3		25
Commercial real estate		312		9		—
Total	$	5,539	$	128	$	65
Six Months Ended June 30, 2017
Residential one-to-four family	$	4,782	$	99	$	46
Home equity loans and lines of credit		276		1		1
Commercial real estate		788		18		—
Total	$	5,846	$	118	$	47
Three Months Ended June 30, 2018
Residential one-to-four family	$	4,988	$	62	$	20
Home equity loans and lines of credit		253		—		4
Commercial real estate		294		4		—
Total	$	5,535	$	66	$	24
Three Months Ended June 30, 2017
Residential one-to-four family	$	4,964	$	55	$	27
Home equity loans and lines of credit		276		—		—
Commercial real estate		770		9		—
Total	$	6,010	$	64	$	27

Summary of Company's Loans by Risk Rating

The following table presents the Company’s loans by risk rating at the dates indicated:

	June 30, 2018						December 31, 2017
	Commercial RealEstate		Construction		Commercial and Industrial		Commercial RealEstate		Construction		Commercial and Industrial
	(In thousands)
Loans rated 1 - 3B (Pass rated)	$	107,575	$	27,173	$	20,649	$	101,556	$	25,357	$	21,766
Loans rated 4		—		—		—		—		—		—
Loans rated 5		195		—		—		199		—		—
	$	107,770	$	27,173	$	20,649	$	101,755	$	25,357	$	21,766

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Loan Servicing (Tables)

6 Months Ended

Jun. 30, 2018

Transfers And Servicing [Abstract]

Summary of Activity Relating to Mortgage Servicing Rights

The following table summarizes the activity relating to mortgage servicing rights for the six months ended June 30, 2018 and 2017 (in thousands):

	June 30, 2018			June 30, 2017
Mortgage servicing rights:
Balance at beginning of year	$	6,487		$	8,910
Additions through originations		851			946
Amortization		(480	)		(671	)
Balance at end of period	$	6,858		$	9,185
Valuation allowance:
Balance at beginning of year	$	90		$	424
Provision (credit)		(77	)		(231	)
Balance at end of period	$	13		$	193
Amortized cost, net	$	6,845		$	8,992
Fair value	$	7,380		$	9,014

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Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Schedule of Calculation of Average Number of Shares Outstanding Used to Calculate Basic and Diluted Loss Per Share

The following table sets forth the calculation of the average number of shares outstanding used to calculate the basic and diluted loss per share for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Average number of common shares outstanding		6,005,578			5,868,709			6,021,802			5,868,717
Less: Average unallocated ESOP shares		(424,895	)		(443,676	)		(427,243	)		(446,023	)
		5,580,683			5,425,033			5,594,559			5,422,694

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Granted Options to Purchase Shares of Common Stock

During the six months ended June 30, 2018, the Company granted options to purchase 27,000 shares of common stock and used the following assumptions in measuring the fair value of such grants:

Vesting period (years)	3-5
Expiration period (years)		10
Expected volatility		29.87	%
Expected life (years)		6.5
Expected dividend yield		—
Risk free interest rate	2.68% - 2.77%
Option fair value	$	5.79

Summary of Stock Options Activity

A summary of stock option activity for the six months ended June 30, 2018 is presented in the table below:

Options	Stock Option Grants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Balance at December 31, 2017		316,009		$	14.66		9.78	$	219,374
Granted		27,000			16.15		10.00		—
Forfeited		(17,302	)		14.74		—		—
Balance at June 30, 2018 (all non-vested)		325,707		$	14.78		9.32	$	658,208
Exercisable at June 30, 2018		—		$	—		—		—
Unrecognized compensation cost	$	1,299,000
Weighted average remaining recognition period    (years)		4.12

Summary of Activity in Restricted Stock Awards Under Equity Plan

The following table presents the activity in restricted stock awards under the Equity Plan for the six months ended June 30, 2018:

	Restricted Stock Awards			Weighted Average Grant Price
Restricted stock awards at December 31, 2017		176,239		$	14.66
Granted		—			—
Forfeited		(7,042	)		14.66
Restricted stock awards at June 30, 2018 (all non-vested)		169,197		$	14.66
Unrecognized compensation cost	$	2,116,000
Weighted average remaining recognition period (years)		4.18

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Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

							Total
	Level 1		Level 2		Level 3		FairValue
	(In thousands)
June 30, 2018
Assets:
Securities available for sale:
Debt securities	$	—	$	56,036	$	—	$	56,036
Mutual fund		—		518		—		518
Loans held for sale		—		36,661		—		36,661
Loans held for investment		—		—		1,922		1,922
Derivative loan commitments		—		486		—		486
Forward loan sale commitments		—		23		—		23
Liabilities:
Derivative loan commitments		—		4		—		4
Forward loan sale commitments		—		137		—		137
December 31, 2017
Assets:
Securities available for sale:
Debt securities	$	—	$	61,043	$	—	$	61,043
Mutual fund		—		533		—		533
Loans held for sale		—		25,390		—		25,390
Loans held for investment		—		—		6,412		6,412
Derivative loan commitments		—		363		—		363
Forward loan sale commitments		—		4		—		4
Liabilities:
Forward loan sale commitments		—		19		—		19

Schedule of Assets Measured at Fair Value on a Non-Recurring Basis

The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related assets as of June 30, 2018 and December 31, 2017.

							Period Ended
	June 30, 2018						June 30, 2018
	Level 1		Level 2		Level 3		Total Gains (Losses)
	(In thousands)
Collateral dependent
impaired loans	$	—	$	—	$	1,255	$	—
Mortgage servicing rights		—		6,845		—		77
Assets held for sale		—		—		402		—
Foreclosed real estate		—		—		193		—
	$	—	$	6,845	$	1,850	$	77
	December 31, 2017
	Level 1		Level 2		Level 3
	(In thousands)
Collateral dependent
impaired loans	$	—	$	—	$	1,630
Mortgage servicing rights		—		6,397		—
Assets held for sale		—		—		828
Foreclosed real estate		—		—		193
	$	—	$	6,397	$	2,651

Summary of Carrying Values, Estimated Fair Values and Placement in Fair Value Hierarchy of Company's Financial Instruments

The estimated fair values, and related carrying amounts, of the Company’s financial instruments are presented below.  Certain financial instruments and all non-financial instruments are exempt from disclosure requirements.  Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include mortgagors’ escrow accounts and accrued interest payable.

	June 30, 2018
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Financial assets:
Certificates of deposit	$	2,695	$	2,676	$	—	$	2,676	$	—
Securities available for sale		56,554		56,554		—		56,554		—
Loans held for sale		36,661		36,661		—		36,661		—
Loans, net		427,703		418,040		—		—		418,040
Derivative assets		509		509		—		509		—
Financial liabilities:
Deposits	$	422,899	$	421,391	$	—	$	421,391	$	—
FHLBB advances		56,680		56,486		—		56,486		—
Derivative liabilities		141		141		—		141		—

	December 31, 2017
	Carrying		Fair
	Amount		Value		Level 1		Level 2		Level 3
	(In thousands)
Financial assets:
Certificates of deposit	$	2,940	$	2,932	$	—	$	2,932	$	—
Securities available for sale		61,576		61,576		—		61,576		—
Loans held for sale		25,390		25,390		—		25,390		—
Loans, net		400,373		398,407		—		—		398,407
Derivative assets		367		367		—		367		—
Financial liabilities:
Deposits	$	366,836		365,997	$	—	$	365,997	$	—
FHLBB advances		75,954		75,821		—		75,821		—
Derivative liabilities		19		19		—		19		—

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Summary of Financial Instruments Outstanding Contract Amounts Represent Credit Risk

The following financial instruments were outstanding, at the dates indicated, whose contract amounts represent credit risk:

	June 30, 2018		December 31, 2017
	(In thousands)
Commitments to originate loans	$	48,461	$	35,549
Unused lines and letters of credit		43,290		39,968
Unadvanced funds on construction loans		10,870		6,967
Overdraft lines of credit		8,767		8,996

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Summary of Segment Information

Segment information as of and for the three and six months ended June 30, 2018 follows:

	For the Three Months Ended June 30, 2018
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	3,800		$	233		$	4,033
Provision for loan losses		(90	)		—			(90	)
Net interest income after provision for loan losses		3,890			233			4,123
Non-interest income:
Customer service fees		410			29			439
Gain on loan origination and sale activities, net (1)		—			2,265			2,265
Mortgage servicing fees, net		(73	)		364			291
Other		114			85			199
Total non-interest income		451			2,743			3,194
Non-interest expenses:
Salaries and employee benefits		1,612			3,367			4,979
Occupancy and equipment		373			356			729
Other non-interest expenses		1,227			977			2,204
Total non-interest expenses		3,212			4,700			7,912
Income (loss) before income taxes and elimination of intercompany profit	$	1,129		$	(1,724	)		(595	)
Elimination of intercompany profit								(411	)
Loss before income taxes								(1,006	)
Income tax expense								4
Net loss							$	(1,010	)
Total assets, June 30, 2018	$	489,214		$	76,695		$	565,909

	For the Six Months Ended June 30, 2018
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	7,539		$	476		$	8,015
Provision for loan losses		5			—			5
Net interest income after provision for loan losses		7,534			476			8,010
Non-interest income:
Customer service fees		711			28			739
Gain on loan origination and sale activities, net (1)		—			4,085			4,085
Mortgage servicing fees, net		(141	)		766			625
Other		248			177			425
Total non-interest income		818			5,056			5,874
Non-interest expenses:
Salaries and employee benefits		3,248			6,167			9,415
Occupancy and equipment		773			654			1,427
Other non-interest expenses		2,238			1,829			4,067
Total non-interest expenses		6,259			8,650			14,909
Income (loss) before income taxes and elimination of intercompany profit	$	2,093		$	(3,118	)		(1,025	)
Elimination of intercompany profit								(684	)
Loss before income taxes								(1,709	)
Income tax expense								8
Net loss							$	(1,717	)

(1) Before elimination of intercompany profit

Segment information as of and for the three and six months ended June 30, 2017 follows:

	For the Three Months Ended June 30, 2017
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	3,425		$	265		$	3,690
Provision for loan losses		100			—			100
Net interest income after provision for loan losses		3,325			265			3,590
Non-interest income:
Customer service fees		336			42			378
Gain on loan origination and sale activities, net (1)		—			2,780			2,780
Mortgage servicing fees, net		(61	)		351			290
Other		213			33			246
Total non-interest income		488			3,206			3,694
Non-interest expenses:
Salaries and employee benefits		1,642			3,073			4,715
Occupancy and equipment		325			294			619
Merger and integration costs		—			357			357
Other non-interest expenses		818			919			1,737
Total non-interest expenses		2,785			4,643			7,428
Income (loss) before income taxes and elimination of intercompany profit	$	1,028		$	(1,172	)		(144	)
Elimination of intercompany profit								(260	)
Loss before income taxes								(404	)
Income tax benefit								(254	)
Net loss							$	(150	)
Total assets, June 30, 2017	$	435,775		$	72,164		$	507,939

	For the Six Months Ended June 30, 2017
	Envision Bank			Envision Mortgage			Consolidated Total
	(in thousands)
Net interest income	$	6,649		$	525		$	7,174
Provision for loan losses		335			—			335
Net interest income after provision for loan losses		6,314			525			6,839
Non-interest income:
Customer service fees		708			42			750
Gain on loan origination and sale activities, net (1)		—			4,992			4,992
Mortgage servicing fees, net		(122	)		1,072			950
Other		491			95			586
Total non-interest income		1,077			6,201			7,278
Non-interest expenses:
Salaries and employee benefits		3,236			6,155			9,391
Occupancy and equipment		672			603			1,275
Merger and integration costs		19			505			524
Other non-interest expenses		1,757			1,610			3,367
Total non-interest expenses		5,684			8,873			14,557
Income (loss) before income taxes and elimination of intercompany profit	$	1,707		$	(2,147	)		(440	)
Elimination of intercompany profit								(434	)
Loss before income taxes								(874	)
Income tax benefit								(277	)
Net loss							$	(597	)

(1) Before elimination of intercompany profit

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Basis of Financial Statement Presentation- Additional Information (Detail)	Jan. 01, 2018 Segment
Accounting Policies [Abstract]
Number of business segments	2

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Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss and Related Tax Effects (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total other comprehensive income (loss)	$ (184)	$ 457	$ (1,300)	$ 492
Accumulated other comprehensive loss, net of tax	$ (2,467)		(2,467)		$ (1,167)
Accumulated Net Investment Gain (Loss) Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized loss			(1,900)		(624)
Other comprehensive Loss, Tax effect			(313)		(313)
Total other comprehensive income (loss)			(2,213)		(937)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized loss			(649)		(667)
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized loss			442		484
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrealized loss			(207)		(183)
Other comprehensive Loss, Tax effect			(47)		(47)
Total other comprehensive income (loss)			$ (254)		$ (230)

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Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 58,454	$ 62,199
Gross Unrealized Gains	108	403
Gross Unrealized Losses	(2,008)	(1,026)
Fair Value	56,554	61,576
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	57,909	61,654
Gross Unrealized Gains	108	403
Gross Unrealized Losses	(1,981)	(1,014)
Fair Value	56,036	61,043
Debt Securities [Member] | US Government-sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,999	3,999
Gross Unrealized Gains	17	50
Gross Unrealized Losses	(42)	(24)
Fair Value	3,974	4,025
Debt Securities [Member] | Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,529	2,005
Gross Unrealized Gains	8	27
Gross Unrealized Losses	(21)	(8)
Fair Value	1,516	2,024
Debt Securities [Member] | Municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,020	12,707
Gross Unrealized Gains	33	179
Gross Unrealized Losses		(18)
Fair Value	2,053	12,868
Debt Securities [Member] | Residential Mortgage-backed Securities, US Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	27,154	18,729
Gross Unrealized Gains	50	118
Gross Unrealized Losses	(944)	(450)
Fair Value	26,260	18,397
Debt Securities [Member] | Commercial Mortgage-backed Securities, US Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,336	14,451
Gross Unrealized Gains		13
Gross Unrealized Losses	(749)	(403)
Fair Value	13,587	14,061
Debt Securities [Member] | Commercial Mortgage Backed Securities, U.S. Government-guaranteed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,826	2,132
Gross Unrealized Losses	(39)	(6)
Fair Value	1,787	2,126
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,738	1,871
Gross Unrealized Gains		12
Gross Unrealized Losses	(41)	(5)
Fair Value	1,697	1,878
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Guaranteed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,307	5,760
Gross Unrealized Gains		4
Gross Unrealized Losses	(145)	(100)
Fair Value	5,162	5,664
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	545	545
Gross Unrealized Losses	(27)	(12)
Fair Value	$ 518	$ 533

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Securities Available for Sale - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2018 USD ($) Debt_Security
Investments Debt And Equity Securities [Abstract]
Proceeds from sales of available-for-sale securities	$ 8,958,000
Gross realized gains from sales of available-for-sale securities	49,000
Gross realized losses from sales of available-for-sale securities	$ 0
Number of debt securities with unrealized losses | Debt_Security	40
Unrealized losses debt securities aggregate depreciation percentage	4.04%

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Securities Available for Sale - Investments Classified by Contractual Maturity Date (Detail) $ in Thousands	Jun. 30, 2018 USD ($)
Available-for-sale Securities, Debt Maturities, Amortized Cost
Within 1 year	$ 530
After 1 year through 5 years	6,179
After 5 years through 10 years	839
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total	7,548
Mortgage-backed securities	50,361
Available-for-sale Debt Securities, Amortized Cost Basis, Total	57,909
Available-for-sale Securities, Debt Maturities, Fair Value
Within 1 year	532
After 1 year through 5 years	6,157
After 5 years through 10 years	854
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value Total	7,543
Mortgage-backed securities	48,493
Available-for-sale Securities, Debt Securities, Fair Value Total	$ 56,036

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Securities Available for Sale - Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months, Gross Unrealized Losses	$ (284)	$ (24)
Less Than Twelve Months, Fair Value	22,740	6,641
Over Twelve Months, Gross Unrealized Losses	(1,724)	(1,002)
Over Twelve Months, Fair Value	26,908	47,400
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months, Gross Unrealized Losses	(284)	(24)
Less Than Twelve Months, Fair Value	22,740	6,641
Over Twelve Months, Gross Unrealized Losses	(1,697)	(990)
Over Twelve Months, Fair Value	26,390	46,867
Debt Securities [Member] | US Government-sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Over Twelve Months, Gross Unrealized Losses	(42)	(24)
Over Twelve Months, Fair Value	1,958	19,676
Debt Securities [Member] | Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months, Gross Unrealized Losses	(6)
Less Than Twelve Months, Fair Value	496
Over Twelve Months, Gross Unrealized Losses	(15)	(8)
Over Twelve Months, Fair Value	506	988
Debt Securities [Member] | Residential Mortgage-backed Securities, US Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months, Gross Unrealized Losses	(101)	(1)
Less Than Twelve Months, Fair Value	11,960	1,623
Over Twelve Months, Gross Unrealized Losses	(843)	(449)
Over Twelve Months, Fair Value	11,977	13,163
Debt Securities [Member] | Commercial Mortgage-backed Securities, US Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months, Gross Unrealized Losses	(71)
Less Than Twelve Months, Fair Value	5,113
Over Twelve Months, Gross Unrealized Losses	(678)	(403)
Over Twelve Months, Fair Value	8,474	8,805
Debt Securities [Member] | Commercial Mortgage Backed Securities, U.S. Government-guaranteed [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months, Gross Unrealized Losses	(39)	(6)
Less Than Twelve Months, Fair Value	1,787	2,126
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months, Gross Unrealized Losses	(41)	(5)
Less Than Twelve Months, Fair Value	1,697	678
Debt Securities [Member] | Collateralized Mortgage Obligations, US Government Guaranteed [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months, Gross Unrealized Losses	(26)	(1)
Less Than Twelve Months, Fair Value	1,687	295
Over Twelve Months, Gross Unrealized Losses	(119)	(99)
Over Twelve Months, Fair Value	3,475	3,756
Debt Securities [Member] | Municipal [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than Twelve Months, Gross Unrealized Losses		(11)
Less Than Twelve Months, Fair Value		1,919
Over Twelve Months, Gross Unrealized Losses		(7)
Over Twelve Months, Fair Value		479
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Over Twelve Months, Gross Unrealized Losses	(27)	(12)
Over Twelve Months, Fair Value	$ 518	$ 533

XML

Loans and Allowance for Loan Losses - Summary of Loans Held for Investment at Dates Indicated (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 429,910	$ 402,658
Allowance for loan losses	(3,742)	(3,737)
Net deferred loan costs and fees, and purchase premiums	1,535	1,452
Net loans	427,703	400,373
Real Estate Sector [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	393,871	364,555
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	107,770	101,755
Commercial Real Estate Loans [Member] | Real Estate Sector [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	107,770	101,755
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	20,649	21,766
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	15,390	16,337
One-to-Four Family [Member] | Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	217,844	198,475
One-to-Four Family [Member] | Residential Real Estate [Member] | Real Estate Sector [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	217,844	198,475
Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member] | Real Estate Sector [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	41,084	38,968
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	27,173	25,357
Construction [Member] | Real Estate Sector [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 27,173	$ 25,357

XML

Loans and Allowance for Loan Losses - Summary of Changes in the Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 3,844	$ 3,437	$ 3,737	$ 3,271
Provision (credit) for loan losses	(90)	100	5	335
Loans charged-off	(22)	(32)	(37)	(109)
Recoveries	10	52	37	60
Ending balance	3,742	3,557	3,742	3,557
Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,700	1,519	1,620	1,410
Provision (credit) for loan losses	(195)	17	(115)	126
Ending balance	1,505	1,536	1,505	1,536
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	319	195	335	37
Provision (credit) for loan losses	(21)	47	(37)	204
Recoveries		34		35
Ending balance	298	276	298	276
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	198	156	218	145
Provision (credit) for loan losses	66	64	59	149
Loans charged-off	(22)	(32)	(37)	(109)
Recoveries	5	10	7	13
Ending balance	247	198	247	198
One-to-Four Family [Member] | Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	876	821	854	1,018
Provision (credit) for loan losses	88	(9)	85	(210)
Recoveries	5	8	30	12
Ending balance	969	820	969	820
Second Mortgages and HELOC [Member] | Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	365	395	359	436
Provision (credit) for loan losses	(85)	(57)	(79)	(98)
Ending balance	280	338	280	338
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	386	351	351	225
Provision (credit) for loan losses	57	38	92	164
Ending balance	$ 443	$ 389	$ 443	$ 389

XML

Loans and Allowance for Loan Losses - Summary of Additional Information Pertaining to the Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for impaired loans	$ 103		$ 162
Allowance for non-impaired loans	3,639		3,575
Total allowance for loan losses	3,742	$ 3,844	3,737	$ 3,557	$ 3,437	$ 3,271
Impaired loans	5,339		5,833
Non-impaired loans	424,571		396,825
Total loans	429,910		402,658
Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for impaired loans			1
Allowance for non-impaired loans	1,505		1,619
Total allowance for loan losses	1,505	1,700	1,620	1,536	1,519	1,410
Impaired loans	294		352
Non-impaired loans	107,476		101,403
Total loans	107,770		101,755
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for non-impaired loans	298		335
Total allowance for loan losses	298	319	335	276	195	37
Non-impaired loans	20,649		21,766
Total loans	20,649		21,766
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for non-impaired loans	247		218
Total allowance for loan losses	247	198	218	198	156	145
Non-impaired loans	15,390		16,337
Total loans	15,390		16,337
One-to-Four Family [Member] | Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for impaired loans	103		160
Allowance for non-impaired loans	866		694
Total allowance for loan losses	969	876	854	820	821	1,018
Impaired loans	4,802		5,205
Non-impaired loans	213,042		193,270
Total loans	217,844		198,475
Second Mortgages and HELOC [Member] | Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for impaired loans			1
Allowance for non-impaired loans	280		358
Total allowance for loan losses	280	365	359	338	395	436
Impaired loans	243		276
Non-impaired loans	40,841		38,692
Total loans	41,084		38,968
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for non-impaired loans	443		351
Total allowance for loan losses	443	$ 386	351	$ 389	$ 351	$ 225
Non-impaired loans	27,173		25,357
Total loans	$ 27,173		$ 25,357

XML

Loans and Allowance for Loan Losses - Schedule of Past Due and Non-Accrual Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 1,654	$ 833
Non-accrual Loans	1,875	2,251
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual Loans	62
One-to-Four Family [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,308	737
Non-accrual Loans	1,570	1,975
Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	11	96
Non-accrual Loans	243	276
Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	335
30 - 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	335	833
30 - 59 Days Past Due [Member] | One-to-Four Family [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		737
30 - 59 Days Past Due [Member] | Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		$ 96
30 - 59 Days Past Due [Member] | Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	335
60 - 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	684
60 - 89 Days Past Due [Member] | One-to-Four Family [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	673
60 - 89 Days Past Due [Member] | Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	11
90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	635
90 Days or More Past Due [Member] | One-to-Four Family [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 635

XML

Loans and Allowance for Loan Losses - Summary of Impaired Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Recorded Investment without a valuation allowance	$ 3,126	$ 3,189
Unpaid Principal Balance without a valuation allowance	3,085	3,145
Recorded Investment with a valuation allowance		2,708
Unpaid Principal Balance with a valuation allowance		2,688
Related Allowance, Total impaired loans	103	162
Recorded Investment, Total impaired loans	5,395	5,897
Unpaid Principal Balance, Total impaired loans	5,339	5,833
Commercial Real Estate Loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment without a valuation allowance	294	257
Unpaid Principal Balance without a valuation allowance	294	257
Recorded Investment with a valuation allowance		95
Unpaid Principal Balance with a valuation allowance		95
Related Allowance, Total impaired loans		1
One-to-Four Family [Member] | Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment without a valuation allowance	2,589	2,685
Unpaid Principal Balance without a valuation allowance	2,548	2,641
Recorded Investment with a valuation allowance	2,269	2,584
Unpaid Principal Balance with a valuation allowance	2,254	2,564
Related Allowance, Total impaired loans	103	160
Home Equity Loans and Lines of Credit [Member] | Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment without a valuation allowance	243	247
Unpaid Principal Balance without a valuation allowance	$ 243	247
Recorded Investment with a valuation allowance		29
Unpaid Principal Balance with a valuation allowance		29
Related Allowance, Total impaired loans		$ 1

XML

Loans and Allowance for Loan Losses - Summary of Additional Information Pertaining to Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 5,535	$ 6,010	$ 5,539	$ 5,846
Interest Income Recognized	66	64	128	118
Cash Basis Interest Recognized	24	27	65	47
Residential Real Estate [Member] | One-to-Four Family [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	4,988	4,964	4,965	4,782
Interest Income Recognized	62	55	116	99
Cash Basis Interest Recognized	20	27	40	46
Residential Real Estate [Member] | Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	253	276	262	276
Interest Income Recognized			3	1
Cash Basis Interest Recognized	4		25	1
Commercial Real Estate Loans [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	294	770	312	788
Interest Income Recognized	$ 4	$ 9	$ 9	$ 18

XML

Loans and Allowance for Loan Losses - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) TDR	Jun. 30, 2017 USD ($) TDR	Dec. 31, 2017 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired loans, additional funds committed	$ 0		$ 0
Loans subject to troubled debt restructurings | TDR			0	0
Troubled debt restructuring amount			$ 3,589,000	$ 4,006,000
Changes to allowance for loan losses	0	$ 0	$ 0	0
Minimum past due days for loan rating			90 days
Total loans	429,910,000		$ 429,910,000		$ 402,658,000
Consumer Loans [Member] | Doubtful [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	62,000		62,000
Residential Mortgage [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	702,000		702,000		712,000
Residential Mortgage [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,362,000		2,362,000		2,512,000
30 - 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructurings defaulted over 30 days past due	0	0	0	0
Non Accrual Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring amount			179,000	$ 997,000
Home Equity Loans and Lines of Credit [Member] | Special Mention [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	243,000		$ 243,000		247,000
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans subject to troubled debt restructurings | TDR			17	19
Loans subject to troubled debt restructurings, amount	3,681,000	4,449,000	$ 3,681,000	$ 4,449,000
Residential Real Estate [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring, interest rate concession period			3 months
Residential Real Estate [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring, interest rate concession period			30 years
Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans subject to troubled debt restructurings | TDR			2	3
Loans subject to troubled debt restructurings, amount	87,000	$ 553,000	$ 87,000	$ 553,000
Total loans	107,770,000		107,770,000		101,755,000
Commercial Real Estate Loans [Member] | Substandard [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 195,000		$ 195,000		$ 199,000
Commercial Real Estate Loans [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Troubled debt restructuring, interest rate concession period			1 year

XML

Loans and Allowance for Loan Losses - Summary of Company's Loans by Risk Rating (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	$ 429,910	$ 402,658
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	27,173	25,357
Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	107,770	101,755
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	20,649	21,766
Pass [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	27,173	25,357
Pass [Member] | Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	107,575	101,556
Pass [Member] | Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	20,649	21,766
Substandard [Member] | Commercial Real Estate Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total loans	$ 195	$ 199

XML

Loan Servicing - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Transfers And Servicing [Abstract]
Unpaid principal balance of residential mortgage loans serviced for others	$ 823,280,000		$ 771,407,000
Increase (decrease) in valuation allowance of mortgage servicing rights	$ (77,000)	$ (231,000)

XML

Loan Servicing - Summary of Activity Relating to Mortgage Servicing Rights (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Mortgage servicing rights:
Balance at beginning of year	$ 6,487	$ 8,910
Additions through originations	851	946
Amortization	(480)	(671)
Balance at end of period	6,858	9,185
Valuation allowance:
Balance at beginning of year	90	424
Provision (credit)	(77)	(231)
Balance at end of period	13	193
Amortized cost, net	6,845	8,992
Fair value	$ 7,380	$ 9,014

XML

Income Taxes - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Deferred income tax benefit	$ 0	$ 280,000
Current state tax expense	$ 9,000	$ 3,000

XML

On-Balance Sheet Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Derivative Loan Commitments [Member]
Derivative [Line Items]
Derivative, Notional amount	$ 37,857,000	$ 24,222,000
Forward Loan Sale Commitments [Member]
Derivative [Line Items]
Derivative, Notional amount	41,137,000	29,613,000
Other Assets [Member] | Derivative Loan Commitments [Member]
Derivative [Line Items]
Derivative fair value, Asset	486,000	363,000
Other Assets [Member] | Forward Loan Sale Commitments [Member]
Derivative [Line Items]
Derivative fair value, Asset	23,000	4,000
Other Liablilities [Member] | Derivative Loan Commitments [Member]
Derivative [Line Items]
Derivative fair value, Liability	4,000
Other Liablilities [Member] | Forward Loan Sale Commitments [Member]
Derivative [Line Items]
Derivative fair value, Liability	$ 137,000	$ 19,000

XML

Employee Stock Ownership Plan - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Employee Stock Ownership Plan E S O P Disclosures [Line Items]
Loan repaid term			25 years
Number of allocated shares	18,780		18,780
Annual allocation of shares, expiration year			2040
ESOP expense	$ 77,000	$ 76,000	$ 151,000	$ 145,000
Unallocated shares	422,548		422,548
Unallocated shares, value	$ 7,099,000		$ 7,099,000
Common Stock [Member]
Employee Stock Ownership Plan E S O P Disclosures [Line Items]
Sale of stock, price per share	$ 10.00		$ 10.00
The Randolph Savings Charitable Foundation, Inc. [Member]
Employee Stock Ownership Plan E S O P Disclosures [Line Items]
Sale of share in employee stock ownership plan			469,498

XML

Share Repurchase Program - Additional Information (Detail) - USD ($)	1 Months Ended	6 Months Ended
	Sep. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Class Of Stock [Line Items]
Cost of shares repurchased		$ 631,000	$ 3,000
September 2017 Share Repurchase Program [Member]
Class Of Stock [Line Items]
Stock repurchase program percentage of outstanding shares repurchased	10.00%
Number of shares authorized to repurchase	586,854
Number of shares repurchased		47,500
Cost of shares repurchased		$ 748,000

XML

Earnings (Loss) Per Share - Additional Information (Detail) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Potentially dilutive common stock equivalents outstanding	0	0
Stock options outstanding	325,707	325,707	316,009

XML

Earnings (Loss) Per Share - Schedule of Calculation of Average Number of Shares Outstanding Used to Calculate Basic and Diluted Loss Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Average number of common shares outstanding	6,005,578	5,868,709	6,021,802	5,868,717
Less: Average unallocated ESOP shares	(424,895)	(443,676)	(427,243)	(446,023)
Average number of common shares outstanding (basic and diluted)	5,580,683	5,425,033	5,594,559	5,422,694

XML

Stock-Based Compensation - Additional Information (Detail)	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($) shares	Jun. 30, 2018 USD ($) shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted to purchase of shares of common stock		27,000
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options term		10 years
Stock-based compensation expense | $	$ 71,000	$ 145,000
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense | $	$ 109,000	$ 242,000
Two Thousand Seventeen Stock Option and Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options and awards vesting period		5 years
Two Thousand Seventeen Stock Option and Incentive Plan [Member] | Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for issuance	586,872	586,872
Stock options term		10 years
Two Thousand Seventeen Stock Option and Incentive Plan [Member] | Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for issuance	234,749	234,749

XML

Stock Based Compensation - Summary of Granted Options to Purchase Shares of Common Stock (Detail)	6 Months Ended
	Jun. 30, 2018 $ / shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Option fair value	$ 5.79
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period (years)	10 years
Expected volatility	29.87%
Expected life (years)	6 years 6 months
Risk free interest rate, minimum	2.68%
Risk free interest rate, maximum	2.77%
Minimum [Member] | Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (years)	3 years
Maximum [Member] | Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (years)	5 years

XML

Stock-Based Compensation - Summary of Stock Options Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Stock Option Grants
Beginning Balance	316,009
Granted	27,000
Forfeited	(17,302)
Ending Balance	325,707	316,009
Exercisable at June 30, 2018	0
Unrecognized compensation cost	$ 1,299,000
Weighted Average Exercise Price
Beginning Balance	$ 14.66
Granted	16.15
Forfeited	14.74
Ending Balance	$ 14.78	$ 14.66
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Weighted Average Remaining Contractual Term	9 years 3 months 25 days	9 years 9 months 10 days
Weighted Average Remaining Contractual Term, Granted	10 years
Aggregate Intrinsic Value, Outstanding	$ 219,374
Aggregate Intrinsic Value, Outstanding	658,208	$ 219,374
Aggregate Intrinsic Value, Exercisable	$ 0
Stock Options [Member]
Stock Option Grants
Weighted average remaining recognition period (years)	4 years 1 month 13 days

XML

Stock-Based Compensation - Summary of Activity in Restricted Stock Awards Under Equity Plan (Detail) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Restricted Stock Awards
Beginning Balance | shares	176,239
Forfeited | shares	(7,042)
Ending Balance | shares	169,197
Unrecognized compensation cost | $	$ 2,116,000
Weighted Average Grant Price
Beginning Balance | $ / shares	$ 14.66
Forfeited | $ / shares	14.66
Ending Balance | $ / shares	$ 14.66
Restricted Stock [Member]
Restricted Stock Awards
Weighted average remaining recognition period (years)	4 years 2 months 4 days

XML

Fair Value of Assets and Liabilities - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	$ 56,554	$ 61,576
Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	56,036	61,043
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	518	533
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	56,554	61,576
Fair value, Loans held for sale	36,661	25,390
Derivative assets	509	367
Derivative liabilities	141	19
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, Loans held for sale	36,661	25,390
Fair value, Loans held for investment	1,922	6,412
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	56,036	61,043
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	518	533
Fair Value, Measurements, Recurring [Member] | Derivative Loan Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	486	363
Derivative liabilities	4
Fair Value, Measurements, Recurring [Member] | Forward Loan Sale Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	23	4
Derivative liabilities	137	19
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, Loans held for sale	36,661	25,390
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	56,036	61,043
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale, at fair value	518	533
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Derivative Loan Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	486	363
Derivative liabilities	4
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Forward Loan Sale Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	23	4
Derivative liabilities	137	19
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, Loans held for investment	$ 1,922	$ 6,412

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Fair Value of Assets and Liabilities - Schedule of Assets Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights, fair value	$ 7,380		$ 9,014
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gains (losses) on assets held, mortgage servicing rights	77
Gains (Losses) on assets held	77
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights, fair value	6,845	$ 6,397
Assets, Fair Value Disclosure	6,845	6,397
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value, Collateral dependent impaired loans	1,255	1,630
Fair value, Assets held for sale	402	828
Fair value, Foreclosed real estate	193	193
Assets, Fair Value Disclosure	$ 1,850	$ 2,651

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Fair Value of Assets and Liabilities - Additional information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (decrease) in valuation allowance of mortgage servicing rights	$ (77,000)	$ (231,000)
Gain (loss) recognized from sale of property	0
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities measured at fair value on nonrecurring basis	$ 0		$ 0

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Fair Value of Assets and Liabilities - Summary of Carrying Values, Estimated Fair Values and Placement in Fair Value Hierarchy of Company's Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial assets:
Securities available for sale	$ 56,554	$ 61,576
Level 2 [Member]
Financial assets:
Certificates of deposit	2,676	2,932
Securities available for sale	56,554	61,576
Loans held for sale	36,661	25,390
Derivative assets	509	367
Financial liabilities:
Deposits	421,391	365,997
FHLBB advances	56,486	75,821
Derivative liabilities	141	19
Level 3 [Member]
Financial assets:
Loans, net	418,040	398,407
Carrying Amount [Member]
Financial assets:
Certificates of deposit	2,695	2,940
Securities available for sale	56,554	61,576
Loans held for sale	36,661	25,390
Loans, net	427,703	400,373
Derivative assets	509	367
Financial liabilities:
Deposits	422,899	366,836
FHLBB advances	56,680	75,954
Derivative liabilities	141	19
Fair Value [Member]
Financial assets:
Certificates of deposit	2,676	2,932
Securities available for sale	56,554	61,576
Loans held for sale	36,661	25,390
Loans, net	418,040	398,407
Derivative assets	509	367
Financial liabilities:
Deposits	421,391	365,997
FHLBB advances	56,486	75,821
Derivative liabilities	$ 141	$ 19

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Commitments and Contingencies - Summary of Financial Instruments Outstanding Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Commitments to Originate Loans [Member]
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	$ 48,461	$ 35,549
Unused Lines and Letters of Credit [Member]
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	43,290	39,968
Unadvanced Funds on Construction Loans [Member]
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	10,870	6,967
Overdraft Lines of Credit [Member]
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]
Financial instruments with off-balance-sheet risk	$ 8,767	$ 8,996

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Segment Information - Additional Information (Detail)		3 Months Ended		6 Months Ended
	Jan. 01, 2018 Segment Office	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of business segments | Segment	2
Number of branch offices | Office	6
Servicing fees amount		$ (291,000)	$ (290,000)	$ (625,000)	$ (950,000)
Envision Mortgage [Member]
Segment Reporting Information [Line Items]
Premium percentage for new loans				1.50%	1.50%
Prermium income		411,000	260,000	$ 684,000	$ 434,000
Percentage of fees for HELOC				1.00%	1.00%
Servicing fees amount		(364,000)	(351,000)	$ (766,000)	$ (1,072,000)
Envision Bank [Member]
Segment Reporting Information [Line Items]
Percentage of loan servicing fees				0.14%	0.14%
Servicing fees amount		$ 73,000	$ 61,000	$ 141,000	$ 122,000

XML

Segment Information - Summary of Segment Information (Detail) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Net interest income		$ 4,033,000	$ 3,690,000	$ 8,015,000	$ 7,174,000
Provision for loan losses		(90,000)	100,000	5,000	335,000
Net interest income after provision (credit) for loan losses		4,123,000	3,590,000	8,010,000	6,839,000
Non-interest income:
Customer service fees		439,000	378,000	739,000	750,000
Gain on loan origination and sale activities, net	[1]	2,265,000	2,780,000	4,085,000	4,992,000
Mortgage servicing fees, net		291,000	290,000	625,000	950,000
Other		199,000	246,000	425,000	586,000
Total non-interest income		3,194,000	3,694,000	5,874,000	7,278,000
Non-interest expenses:
Salaries and employee benefits		4,979,000	4,715,000	9,415,000	9,391,000
Occupancy and equipment		729,000	619,000	1,427,000	1,275,000
Merger And Integration Cost			357,000		524,000
Other non-interest expenses		2,204,000	1,737,000	4,067,000	3,367,000
Total non-interest expenses		7,912,000	7,428,000	14,909,000	14,557,000
Income (loss) before income taxes and elimination of intercompany profit		(595,000)	(144,000)	(1,025,000)	(440,000)
Elimination of intercompany profit		(411,000)	(260,000)	(684,000)	(434,000)
Loss before income taxes		(1,006,000)	(404,000)	(1,709,000)	(874,000)
Income tax expense (benefit)		4,000	(254,000)	8,000	(277,000)
Net loss		(1,010,000)	(150,000)	(1,717,000)	(597,000)
Total assets, June 30, 2018		565,909,000	507,939,000	565,909,000	507,939,000	$ 531,892,000
Envision Bank [Member]
Segment Reporting Information [Line Items]
Net interest income		3,800,000	3,425,000	7,539,000	6,649,000
Provision for loan losses		(90,000)	100,000	5,000	335,000
Net interest income after provision (credit) for loan losses		3,890,000	3,325,000	7,534,000	6,314,000
Non-interest income:
Customer service fees		410,000	336,000	711,000	708,000
Mortgage servicing fees, net		(73,000)	(61,000)	(141,000)	(122,000)
Other		114,000	213,000	248,000	491,000
Total non-interest income		451,000	488,000	818,000	1,077,000
Non-interest expenses:
Salaries and employee benefits		1,612,000	1,642,000	3,248,000	3,236,000
Occupancy and equipment		373,000	325,000	773,000	672,000
Merger And Integration Cost					19,000
Other non-interest expenses		1,227,000	818,000	2,238,000	1,757,000
Total non-interest expenses		3,212,000	2,785,000	6,259,000	5,684,000
Income (loss) before income taxes and elimination of intercompany profit		1,129,000	1,028,000	2,093,000	1,707,000
Total assets, June 30, 2018		489,214,000	435,775,000	489,214,000	435,775,000
Envision Mortgage [Member]
Segment Reporting Information [Line Items]
Net interest income		233,000	265,000	476,000	525,000
Net interest income after provision (credit) for loan losses		233,000	265,000	476,000	525,000
Non-interest income:
Customer service fees		29,000	42,000	28,000	42,000
Gain on loan origination and sale activities, net	[1]	2,265,000	2,780,000	4,085,000	4,992,000
Mortgage servicing fees, net		364,000	351,000	766,000	1,072,000
Other		85,000	33,000	177,000	95,000
Total non-interest income		2,743,000	3,206,000	5,056,000	6,201,000
Non-interest expenses:
Salaries and employee benefits		3,367,000	3,073,000	6,167,000	6,155,000
Occupancy and equipment		356,000	294,000	654,000	603,000
Merger And Integration Cost			357,000		505,000
Other non-interest expenses		977,000	919,000	1,829,000	1,610,000
Total non-interest expenses		4,700,000	4,643,000	8,650,000	8,873,000
Income (loss) before income taxes and elimination of intercompany profit		(1,724,000)	(1,172,000)	(3,118,000)	(2,147,000)
Total assets, June 30, 2018		$ 76,695,000	$ 72,164,000	$ 76,695,000	$ 72,164,000

[1] Before elimination of intercompany profit

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Subsequent Event - Additional Information (Detail) - Sub Lease Agreement [Member] - USD ($)		6 Months Ended
	Jul. 31, 2018	Jun. 30, 2018
Subsequent Event [Line Items]
Estimated loss recognized on sublease		$ 60,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Percentage of land occupied under sublease agreement	27.00%
Termination of lease	2023
Rental Income of sublease	$ 400,000