0001564590-22-002317.txt : 20220125 0001564590-22-002317.hdr.sgml : 20220125 20220125160036 ACCESSION NUMBER: 0001564590-22-002317 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20220125 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20220125 DATE AS OF CHANGE: 20220125 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Randolph Bancorp, Inc. CENTRAL INDEX KEY: 0001667161 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-37780 FILM NUMBER: 22553909 BUSINESS ADDRESS: STREET 1: 2 BATTERYMARCH PARK STREET 2: SUITE 301 CITY: QUINCY STATE: MA ZIP: 02169 BUSINESS PHONE: 877-963-2100 MAIL ADDRESS: STREET 1: 2 BATTERYMARCH PARK STREET 2: SUITE 301 CITY: QUINCY STATE: MA ZIP: 02169 8-K 1 rndb-8k_20220125.htm 8-K rndb-8k_20220125.htm
false 0001667161 0001667161 2022-01-25 2022-01-25

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 25, 2022

 

Randolph Bancorp, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Massachusetts

001-37780

81-1844402

(State or Other Jurisdiction

of Incorporation)

(Commission
File Number)

(IRS Employer

Identification No.)

2 Batterymarch Park, Suite 301, Quincy, Massachusetts 02169

(Address of principal executive offices)

(877) 963-2100

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share

RNDB

The NASDAQ Stock Market LLC

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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 accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 


 

Item 2.02

Results of Operations and Financial Condition.

On January 25, 2022, Randolph Bancorp, Inc. (the “Company”), the holding company for Envision Bank, issued a press release announcing its financial results for the three months and year ended December 31, 2021. The Company’s press release is included as Exhibit 99.1 to this report.

The information set forth in this Item 2.02 and in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.

 

Item 8.01

 

Other Events.

On January 25, 2022, the Company announced that its Board of Directors declared a regular quarterly dividend of $0.15 per common share and a one-time special cash dividend of $2.00 per share. The dividends will be payable on February 22, 2022, to shareholders of record as of February 8, 2022. The Company’s press release announcing the dividends is included in Exhibit 99.1 to this report.

Also on January 25, 2022, the Company announced a modification of its stock repurchase program (the “Program”), previously announced on October 26, 2021. The modification changes the Program so that the Company may purchase up to 62,000 shares, or approximately 1% of the Company’s outstanding common stock. The Company repurchased 4,337 shares through the Program as of December 31, 2021.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.

 

 

 

 

Exhibit

  

Description

99.1

  

Press release dated January 25, 2022

104  

 

Cover Page Interactive Data File (embedded within the XBRL document)

 

 

 

 



 

SIGNATURES

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.

 

 

 

 

 

 

 

 

By:

 

/s/ William M. Parent

 

 

 

 

Name:

Title:

 

William M. Parent

President and Chief Executive Officer

Date: January 25, 2022

 

 

 

 

 

 

 

EX-99.1 2 rndb-ex991_6.htm EX-99.1 rndb-ex991_6.htm

 

Exhibit 99.1

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169

News Release

For Immediate Release

January 25, 2022

For More Information, Contact:

William M. Parent, President and Chief

Executive Officer (617-925-1955)

 

 

RANDOLPH BANCORP, INC. ANNOUNCES FOURTH QUARTER 2021 FINANCIAL RESULTS AND DECLARES QUARTERLY AND SPECIAL CASH DIVIDENDS

 

QUINCY, Massachusetts, January 25, 2022 – Randolph Bancorp, Inc. (the “Company”) (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the “Bank”), today announced net income of $786,000, or $0.17 per basic share and $0.16 per diluted share, for the three months ended December 31, 2021 compared to net income of $3.1 million, or $0.64 per basic and $0.62 per diluted share, for the three months ended September 30, 2021 and net income of $5.3 million, or $1.03 per basic share and $1.01 per diluted share, for the three months ended December 31, 2020. Excluding one-time events of $26,000 in severance expenses and $55,000 in loss of disposal of fixed assets, net income on a non-GAAP basis was $844,000, or $0.17 per diluted share, for the three months ended December 31, 2021. Excluding one-time events of $139,000 in severance expenses and $190,000 in other outsourcing expenses, net income on a non-GAAP basis was $3.4 million, or $0.67 per diluted share, for the three months ended September 30, 2021. Excluding one-time charges of $294,000 related to the closing of a residential lending office and $69,000 in severance expenses, net income on a non-GAAP basis for the three months ended December 31, 2020 was $5.6 million, or $1.06 per diluted share.

 

For the year ended December 31, 2021, net income was $9.6 million, or $1.96 per basic share and $1.88 per diluted share, compared to net income of $19.9 million, or $3.89 per basic and $3.86 per diluted share, for the year ended December 31, 2020. Net income on a non-GAAP basis, excluding certain nonrecurring items, was $10.1 million, or $1.99 per diluted share, for the year ended December 31, 2021, compared to net income on a non-GAAP basis, excluding other certain nonrecurring items, of $21.5 million, or $4.15 per diluted share, for the year ended December 31, 2020.

 

The Company announced that its Board of Directors declared a regular quarterly dividend of $0.15 per common share and a one-time special dividend of $2.00 per share. Both dividends will be payable on or about February 22, 2022, to shareholders of record as of February 8, 2022.

 

The Company also announced a modification to its stock repurchase program (the “Program”), previously announced on October 26, 2021. The modification changes the Program so that the Company may purchase up to 62,000 shares, or approximately 1% of the Company’s outstanding common stock. The Company repurchased 4,337 shares through the Program as of December 31, 2021.

 

At December 31, 2021, total assets amounted to $803.3 million, compared to $751.1 million at September 30, 2021, an increase of $52.2 million, or 6.9%. Total loans decreased by $20.2 million, or 3.5%, to $549.8 million at December 31, 2021 from $570.0 million at September 30, 2021, and loans held for sale decreased by $30.6 million to $44.8 million at December 31, 2021 from $75.4 million at September 30, 2021. Cash and cash equivalents increased to $115.4 million at December 31, 2021, an increase of $102.6 million, or 796.6% from $12.9 million as of September 30, 2021, as a result of deposit growth of $64.7 million in the quarter, a 1-4 family residential portfolio loan sale of $35.6 million during the quarter, and the decrease in loans held for sale of $30.6 million. Compared to December 31, 2020, total assets grew $82.2 million,


 

or 11.4%, from $721.1 million. The growth from the prior year period was driven by an increase in total loans of $60.5 million, or 12.4%, and cash and cash equivalents of $101.7 million, or 738.2%, partially offset by a decrease in loans held for sale of $74.3 million, or 62.4%.

 

William M. Parent, President and Chief Executive Officer, stated, “The fourth quarter was a transitional quarter as our mortgage banking business continued to be negatively impacted by declining origination volumes. During the quarter, we were able to grow our commercial lending business and increase and extend our low-cost funding, while also repositioning our fixed-rate residential mortgage loan portfolio. This significantly increased our liquidity and prospects for improving net interest margin in anticipation of loan growth into a higher interest rate environment in 2022. We are continuing to transition our mortgage banking operations and in the first quarter of 2022 initiated a reduction in force, reflecting lower mortgage loan production levels. Our decision to declare a special dividend that returns approximately $10 million in capital to our shareholders, reflects the impact of low stock trading volume on the pace of our stock buybacks and our commitment to actively manage our strong capital position. We look forward to 2022 with strong prospects for growth in our community bank that should generate continued operating leverage and stronger recurring earnings.”

 

Fourth Quarter Operating Results

Net interest income decreased by $282,000, or 4.7%, to $5.7 million for the three months ended December 31, 2021 from $6.0 million for the three months ended September 30, 2021. This decrease was primarily due to a 7.4% decrease in average balances of 1-4 family residential loans, as a result of the $35.6 million sale from portfolio, a $160,000 decline in fee accretion earned from the Small Business Administration’s Paycheck Protection Program (“SBA PPP”) to $158,000 in the fourth quarter of 2021 and a $99,000 decrease in interest income from the downgrade of three loans that were previously granted COVID-19 related forbearances to nonaccrual status. The yield earned on interest-earning assets decreased by 23 basis points from the prior quarter, and the rate paid on interest-bearing liabilities decreased by 3 basis points from the prior quarter. Accordingly, the net interest margin decreased by 22 basis points, to 3.14% in the fourth quarter from 3.36% in the third quarter.

 

Net interest income increased by $654,000, or 13.0%, to $5.7 million for the three months ended December 31, 2021, from $5.0 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin increased by 14 basis points to 3.14%, from 3.00%. The improvement reflects average loan growth of $44.8 million from the prior year quarter, while the cost of interest-bearing liabilities decreased by 27 basis points.

 

The Company recognized a credit for loan losses of $108,000 for the quarter ended December 31, 2021, driven by changes in the qualitative factors related to improving commercial lending trends, in addition to a decline in total loan balances of $20.2 million from the prior quarter. The allowance for loan losses was 1.14%, 1.13% and 1.39% of total loans at December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and was 239.7%, 427.7% and 94.6% of non-performing assets at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

 

Non-interest income decreased $3.6 million, or 44.3%, to $4.5 million for the quarter ended December 31, 2021 from $8.1 million in the quarter ended September 30, 2021, due to a decrease of $3.5 million in the net gain on loan origination and sale activities. Sold mortgages totaled $297.3 million in the fourth quarter of 2021, compared to $260.5 million in the third quarter of 2021. The fourth quarter of 2021 ended with a mortgage pipeline of $85.9 million, compared to a pipeline of $158.1 million at the end of the third quarter of 2021, and loans held for sale were $44.8 million as of December 31, 2021, compared to $75.4 million as of September 30, 2021. The decrease in the mortgage banking pipeline and loans held for sale, reflecting rising interest rates and seasonality, were key contributors to the erosion in the gain on loan origination and sale activities from the prior quarter. Mortgage servicing fees decreased $17,000, or 6.2%, to $257,000 for the fourth quarter of 2021 from $274,000 in the third quarter of 2021 as a result of a full quarter of expenses paid to the bank’s new mortgage sub-servicer of $310,000 for the quarter, partially offset by a positive fair value adjustment of $43,000 in the fourth quarter of 2021, compared to a positive fair value adjustment of $39,000 for the third quarter of 2021, based on an increase in mortgage interest rates.

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

2


 

 

Non-interest income decreased $11.1 million, or 70.9%, to $4.5 million for the quarter ended December 31, 2021 from $15.6 million for the quarter ended December 31, 2020, principally due to a decrease of $10.9 million in the net gain on loan origination and sale activities. Sold mortgage loans totaled $297.3 million in the fourth quarter of 2021, compared to sold mortgage loans of $426.5 million during the fourth quarter of 2020. The fourth quarter of 2021 ended with a mortgage pipeline of $85.9 million, compared to a pipeline of $396.6 million at the end of the fourth quarter of 2020. Mortgage servicing fees decreased $18,000 in the quarter ended December 31, 2021, principally due to $310,000 in sub-servicer expenses incurred during the fourth quarter of 2021, partially offset by a positive valuation adjustment to mortgage servicing rights of $43,000 in the quarter ended December 31, 2021 compared to an impairment charge of $87,000 in the quarter ended December 31, 2020 and increases in residential mortgage loan servicing fees, net of amortization, of $162,000 from the prior year quarter.

 

Non-interest expenses decreased $638,000, or 6.5%, to $9.2 million in the quarter ended December 31, 2021 from $9.9 million in the quarter ended September 30, 2021. The decrease was due to a decrease in salaries and employee benefits expense of $297,000, or 4.7%, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production and by reductions in headcount related to the bank’s outsourcing of mortgage loan servicing, in addition to decreases in data processing, professional fees and other non-interest expenses from the prior quarter totaling $452,000.

 

Non-interest expenses decreased $3.7 million to $9.2 million in the quarter ended December 31, 2021 from $12.9 million in the quarter ended December 31, 2020. The decrease is principally due to a decrease in salaries and employee benefits of $2.6 million, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production and reduced headcount, and decreases of $437,000 in occupancy and equipment expenses, as the Company has significantly decreased its operating footprint over the past twelve months.

 

The income tax expense was $330,000 for the three months ended December 31, 2021, compared to $1.2 million for the three months ended September 30, 2021 and $2.2 million for the three months ended December 31, 2020.

 

Year-to-Date Operating Results

Net interest income increased by $3.1 million, or 16.4%, to $22.0 million for the year ended December 31, 2021 from $18.9 million for the year ended December 31, 2020. The change reflects the downward pricing and improved composition of deposit liabilities, as well as loan growth. The composition of our funding base improved with an increase of $48.9 million, or 50.6%, of non-interest bearing deposits and a decrease of $23.3 million, or 31.8%, of borrowings. The composition change resulted in a 50 basis point decrease in the cost of interest-bearing liabilities. Average loan growth of $51.5 million, or 9.2%, from the prior year more than offset a 17 basis point decline in loan yields.

 

The Company recognized a credit for loan losses of $438,000 for the year ended December 31, 2021 compared to a provision of $2.6 million in the prior year. At December 31, 2021, improvements to qualitative factors related to the impact of the COVID-19 pandemic, the economic outlook, commercial lending and credit quality trends all helped to generate the credit for loan losses, partially offset by provisions for loan growth.

 

Non-interest income decreased $23.5 million, or 42.4%, to $31.9 million for the year ended December 31, 2021 from $55.4 million in the prior year, principally due to a decrease of $26.6 million in the net gain on loan origination and sale activities, partially offset by an increase in mortgage servicing fees, net, of $2.8 million. Mortgage loans sold were $1.4 billion in 2021, compared to $1.5 billion in the prior year. Net gain on loan origination and sale activities decreased, as a result of both lower loan sales and the impact of a shrinking mortgage banking pipeline during 2021, compared to an increasing mortgage banking pipeline during 2020. Mortgage servicing fees increased $2.8 million for the year ended December 31, 2021 to $1.7 million from a loss of $1.2 million in the year ended December 31, 2020, primarily due to

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

3


 

positive fair value adjustments of $438,000 for the year ended December 31, 2021 compared to impairment charges of $2.1 million in the year ended December 31, 2020.

 

Non-interest expenses decreased $4.7 million, or 10.1%, to $41.7 million for the year ended December 31, 2021 from $46.3 million for the year ended December 31, 2020. Non-interest expenses in the year ended December 31, 2020 included one-time charges of $1,375,000 related to the retirement of senior executives as well as $229,000 of COVID-19 pandemic-related expenses. Occupancy and equipment expenses decreased $753,000 as compared to the prior year period, as the Company migrated to a hybrid work environment and reduced its overall real estate footprint by closing six loan production offices, and reducing the office space for the bank’s headquarters and loan operations office since the prior year, and reduced COVID-19 pandemic related spending. These decreases were partially offset by increases in other non-interest expenses of $307,000, related to one-time conversion expenses for the bank’s new mortgage sub-servicer, and increases to board fees and stock-based compensation paid to new members of the bank’s Board of Directors.

 

Income tax expenses decreased to $3.1 million for the year ended December 31, 2021 from $5.5 million for the year ended December 31, 2020. The current period included a reversal of a charitable contribution carryforward valuation allowance, and the prior period included the utilization of net operating loss carryforwards.

 

Balance Sheet

At December 31, 2021, total assets amounted to $803.3 million, compared to $755.1 million at September 30, 2021, an increase of $52.2 million, or 6.9%. A $102.6 million increase in cash and cash equivalents from the prior quarter was partially offset by a $30.6 million decrease in loans held for sale and a $20.2 million decrease in total loans. The decrease in total loans was primarily the result of a $35.6 million sale of 1-4 family residential loans from portfolio during the quarter, partially offset by an increase of $12.3 million, or 6.7%, in commercial real estate loans. Deposits increased by $64.7 million, or 11.3%, in the quarter, including an increase of $11.6 million in non-interest bearing deposits and $32.6 million in term certificates, as the Company looked to lengthen the duration of its funding base in anticipation of rising interest rates.

 

Total assets at December 31, 2021 increased $82.2 million, or 11.4%, from $721.1 million at December 31, 2020. Contributing to asset growth was a $61.0 million increase in net loans to $544.6 million at December 31, 2021 from $483.6 million at December 31, 2020. Cash and cash equivalents increased by $101.7 million, or 738.2%, to $115.4 million at December 31, 2021 from $13.8 million at December 31, 2020, principally due an increase of $109.8 million, or 20.8%, of deposits. Commercial real estate loans increased by $53.5 million, or 37.2%, as we focus on diversifying our loan mix. Federal Home Loan Bank of Boston (“FHLBB”) advances decreased by $11.9 million to $50.0 million at December 31, 2021, from $61.9 million at December 31, 2020, and Federal Reserve Bank of Boston (“Federal Reserve Bank”) advances decreased by $11.4 million.

 

Total stockholders’ equity was $100.9 million at December 31, 2021 compared to $100.6 million at September 30, 2021. The increase of $306,000 reflects net income of $786,000, proceeds from the exercise of options of $255,000 and stock-based compensation of $359,000, partially offset by repurchases during the period of $144,000 and dividend payments of $765,000.

 

Total stockholders’ equity was $100.9 million at December 31, 2021 compared to $99.8 million at December 31, 2020. The increase of $1.1 million relates mainly to net income from the previous twelve months of $9.6 million, partially offset by share repurchases of $8.5 million.

 

Subsequent Events

Subsequent to December 31, 2021, the Company announced a reduction in force to its residential lending back-office operations of approximately 30%. The Company estimates that this reduction in force will reduce salaries and benefits expense by approximately $1.4 million on an annualized basis. Through this reduction in force, the elimination of overtime and temporary staffing costs associated with the mortgage origination process and the outsourcing residential loan servicing

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

4


 

operations, which occurred in 2021, the Company will have reduced related costs by $3.3 million, or 15% of Envision Mortgage’s 2021 salaries and benefits expense.

 

COVID-19 Impact

In response to the impact of the COVID-19 pandemic on our customers and our business, the Company implemented a series of measures through the date of this release, including participation in the SBA PPP, through which we funded $26.2 million of SBA PPP Loans through December 31, 2021, and granting payment deferrals for residential mortgage, home equity and certain commercial borrowers who were current in their payments at the time the deferral was requested. Depending on the circumstances of the borrowers, the forbearance calls for a reduced or full deferral of payment. Please refer to the Loan Payment Deferrals and COVID-19 Highly Impacted Sectors for statistics on loan payment deferrals and the commercial loan sectors we believe could continue to be exposed to the economic impact of the COVID-19 pandemic.

 

About Randolph Bancorp, Inc.

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

Forward Looking Statements

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “assume”, “outlook”, “will”, “should”, and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, ongoing disruptions due to the COVID-19 pandemic and the measures taken to contain its spread on the Company’s employees, customers, business operations, credit quality, financial position, liquidity and results of operations; changes in the general business and economic conditions on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in consumer behavior due to changing political, business and economic conditions or legislative or regulatory initiatives; reputational risk relating to the Company’s participation in the SBA PPP and other pandemic-related legislative and regulatory initiatives and programs; turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; and the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

 

Non-GAAP Financial Measures

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

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

5


 

 

Randolph Bancorp, Inc.

Consolidated Balance Sheet

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

Dec 2021 vs.

 

 

Dec 2021 vs.

 

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

 

Sep 2021

 

 

Dec 2020

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

115,449

 

 

$

12,876

 

 

$

13,774

 

 

 

796.6

%

 

 

738.2

%

Securities available for sale, at fair value

 

 

51,666

 

 

 

51,725

 

 

 

55,366

 

 

 

(0.1

)%

 

 

(6.7

)%

Loans held for sale, at fair value

 

 

44,766

 

 

 

75,400

 

 

 

119,112

 

 

 

(40.6

)%

 

 

(62.4

)%

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

236,364

 

 

 

265,561

 

 

 

235,648

 

 

 

(11.0

)%

 

 

0.3

%

Home equity

 

 

57,295

 

 

 

56,124

 

 

 

48,166

 

 

 

2.1

%

 

 

19.0

%

Commercial real estate

 

 

197,423

 

 

 

185,100

 

 

 

143,893

 

 

 

6.7

%

 

 

37.2

%

Construction

 

 

33,961

 

 

 

34,479

 

 

 

31,050

 

 

 

(1.5

)%

 

 

9.4

%

Total real estate loans

 

 

525,043

 

 

 

541,264

 

 

 

458,757

 

 

 

(3.0

)%

 

 

14.4

%

Commercial and industrial

 

 

17,242

 

 

 

19,896

 

 

 

20,259

 

 

 

(13.3

)%

 

 

(14.9

)%

Consumer

 

 

7,552

 

 

 

8,860

 

 

 

10,289

 

 

 

(14.8

)%

 

 

(26.6

)%

Total loans

 

 

549,837

 

 

 

570,020

 

 

 

489,305

 

 

 

(3.5

)%

 

 

12.4

%

Allowance for loan losses

 

 

(6,289

)

 

 

(6,432

)

 

 

(6,784

)

 

 

(2.2

)%

 

 

(7.3

)%

Net deferred loan costs and fees, and purchase premiums

 

 

1,073

 

 

 

1,031

 

 

 

1,123

 

 

 

4.1

%

 

 

(4.5

)%

Loans, net

 

 

544,621

 

 

 

564,619

 

 

 

483,644

 

 

 

(3.5

)%

 

 

12.6

%

Federal Home Loan Bank of Boston stock, at cost

 

 

2,940

 

 

 

3,239

 

 

 

3,576

 

 

 

(9.2

)%

 

 

(17.8

)%

Accrued interest receivable

 

 

1,500

 

 

 

1,763

 

 

 

1,562

 

 

 

(14.9

)%

 

 

(4.0

)%

Mortgage servicing rights, net

 

 

15,616

 

 

 

15,402

 

 

 

12,377

 

 

 

1.4

%

 

 

26.2

%

Premises and equipment, net

 

 

7,684

 

 

 

6,462

 

 

 

4,781

 

 

 

18.9

%

 

 

60.7

%

Bank-owned life insurance

 

 

8,784

 

 

 

8,744

 

 

 

8,622

 

 

 

0.5

%

 

 

1.9

%

Foreclosed real estate, net

 

 

-

 

 

 

-

 

 

 

132

 

 

-%

 

 

 

(100.0

)%

Other assets

 

 

10,252

 

 

 

10,867

 

 

 

18,126

 

 

 

(5.7

)%

 

 

(43.4

)%

Total assets

 

$

803,278

 

 

$

751,097

 

 

$

721,072

 

 

 

6.9

%

 

 

11.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

145,666

 

 

$

134,058

 

 

$

96,731

 

 

 

8.7

%

 

 

50.6

%

Savings accounts

 

 

191,712

 

 

 

188,346

 

 

 

185,481

 

 

 

1.8

%

 

 

3.4

%

NOW accounts

 

 

53,996

 

 

 

53,804

 

 

 

53,530

 

 

 

0.4

%

 

 

0.9

%

Money market accounts

 

 

90,544

 

 

 

73,562

 

 

 

77,393

 

 

 

23.1

%

 

 

17.0

%

Term certificates

 

 

106,112

 

 

 

73,519

 

 

 

83,444

 

 

 

44.3

%

 

 

27.2

%

Interest bearing brokered

 

 

50,117

 

 

 

50,116

 

 

 

31,728

 

 

 

0.0

%

 

 

58.0

%

Total deposits

 

 

638,147

 

 

 

573,405

 

 

 

528,307

 

 

 

11.3

%

 

 

20.8

%

Federal Reserve Bank advances

 

 

-

 

 

 

-

 

 

 

11,431

 

 

-%

 

 

 

(100.0

)%

Federal Home Loan Bank of Boston advances

 

 

50,000

 

 

 

62,900

 

 

 

61,895

 

 

 

(20.5

)%

 

 

(19.2

)%

Mortgagors' escrow accounts

 

 

2,128

 

 

 

1,905

 

 

 

2,338

 

 

 

11.7

%

 

 

(9.0

)%

Post-employment benefit obligations

 

 

2,222

 

 

 

2,182

 

 

 

2,382

 

 

 

1.8

%

 

 

(6.7

)%

Other liabilities

 

 

9,878

 

 

 

10,108

 

 

 

14,900

 

 

 

(2.3

)%

 

 

(33.7

)%

Total liabilities

 

 

702,375

 

 

 

650,500

 

 

 

621,253

 

 

 

8.0

%

 

 

13.1

%

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

50

 

 

 

50

 

 

 

54

 

 

 

0.0

%

 

 

(7.4

)%

Additional paid-in capital

 

 

44,078

 

 

 

43,574

 

 

 

50,937

 

 

 

1.2

%

 

 

(13.5

)%

Retained earnings

 

 

60,524

 

 

 

60,504

 

 

 

51,689

 

 

 

0.0

%

 

 

17.1

%

ESOP-Unearned compensation

 

 

(3,568

)

 

 

(3,615

)

 

 

(3,756

)

 

 

(1.3

)%

 

 

(5.0

)%

Accumulated other comprehensive income (loss), net of tax

 

 

(181

)

 

 

84

 

 

 

895

 

 

 

(315.5

)%

 

 

(120.2

)%

Total stockholders' equity

 

 

100,903

 

 

 

100,597

 

 

 

99,819

 

 

 

0.3

%

 

 

1.1

%

Total liabilities and stockholders' equity

 

$

803,278

 

 

$

751,097

 

 

$

721,072

 

 

 

6.9

%

 

 

11.4

%

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

6


 

 

Randolph Bancorp, Inc.

Consolidated Balance Sheet Trend

(Dollars in thousands)

(Unaudited)

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

115,449

 

 

$

12,876

 

 

$

34,876

 

 

$

54,950

 

 

$

13,774

 

Securities available for sale, at fair value

 

 

51,666

 

 

 

51,725

 

 

 

50,212

 

 

 

54,148

 

 

 

55,366

 

Loans held for sale, at fair value

 

 

44,766

 

 

 

75,400

 

 

 

74,277

 

 

 

93,176

 

 

 

119,112

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

236,364

 

 

 

265,561

 

 

 

263,992

 

 

 

239,190

 

 

 

235,648

 

Home equity

 

 

57,295

 

 

 

56,124

 

 

 

50,555

 

 

 

49,073

 

 

 

48,166

 

Commercial real estate

 

 

197,423

 

 

 

185,100

 

 

 

167,691

 

 

 

146,930

 

 

 

143,893

 

Construction

 

 

33,961

 

 

 

34,479

 

 

 

29,140

 

 

 

29,975

 

 

 

31,050

 

Total real estate loans

 

 

525,043

 

 

 

541,264

 

 

 

511,378

 

 

 

465,168

 

 

 

458,757

 

Commercial and industrial

 

 

17,242

 

 

 

19,896

 

 

 

25,826

 

 

 

23,869

 

 

 

20,259

 

Consumer

 

 

7,552

 

 

 

8,860

 

 

 

9,194

 

 

 

8,724

 

 

 

10,289

 

Total loans

 

 

549,837

 

 

 

570,020

 

 

 

546,398

 

 

 

497,761

 

 

 

489,305

 

Allowance for loan losses

 

 

(6,289

)

 

 

(6,432

)

 

 

(6,523

)

 

 

(6,563

)

 

 

(6,784

)

Net deferred loan costs and fees, and purchase premiums

 

 

1,073

 

 

 

1,031

 

 

 

785

 

 

 

785

 

 

 

1,123

 

Loans, net

 

 

544,621

 

 

 

564,619

 

 

 

540,660

 

 

 

491,983

 

 

 

483,644

 

Federal Home Loan Bank of Boston stock, at cost

 

 

2,940

 

 

 

3,239

 

 

 

2,855

 

 

 

3,576

 

 

 

3,576

 

Accrued interest receivable

 

 

1,500

 

 

 

1,763

 

 

 

1,523

 

 

 

1,501

 

 

 

1,562

 

Mortgage servicing rights, net

 

 

15,616

 

 

 

15,402

 

 

 

15,375

 

 

 

14,744

 

 

 

12,377

 

Premises and equipment, net

 

 

7,684

 

 

 

6,462

 

 

 

5,115

 

 

 

4,709

 

 

 

4,781

 

Bank-owned life insurance

 

 

8,784

 

 

 

8,744

 

 

 

8,703

 

 

 

8,662

 

 

 

8,622

 

Foreclosed real estate, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

132

 

 

 

132

 

Other assets

 

 

10,252

 

 

 

10,867

 

 

 

10,546

 

 

 

10,607

 

 

 

18,126

 

Total assets

 

$

803,278

 

 

$

751,097

 

 

$

744,142

 

 

$

738,188

 

 

$

721,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

145,666

 

 

$

134,058

 

 

$

124,683

 

 

$

118,623

 

 

$

96,731

 

Savings accounts

 

 

191,712

 

 

 

188,346

 

 

 

190,584

 

 

 

192,712

 

 

 

185,481

 

NOW accounts

 

 

53,996

 

 

 

53,804

 

 

 

51,059

 

 

 

62,772

 

 

 

53,530

 

Money market accounts

 

 

90,544

 

 

 

73,562

 

 

 

73,967

 

 

 

78,236

 

 

 

77,393

 

Term certificates

 

 

106,112

 

 

 

73,519

 

 

 

74,631

 

 

 

75,690

 

 

 

83,444

 

Interest bearing brokered

 

 

50,117

 

 

 

50,116

 

 

 

57,059

 

 

 

32,225

 

 

 

31,728

 

Total deposits

 

 

638,147

 

 

 

573,405

 

 

 

571,983

 

 

 

560,258

 

 

 

528,307

 

Federal Reserve Bank advances

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

11,431

 

Federal Home Loan Bank of Boston advances

 

 

50,000

 

 

 

62,900

 

 

 

50,016

 

 

 

60,024

 

 

 

61,895

 

Mortgagors' escrow accounts

 

 

2,128

 

 

 

1,905

 

 

 

1,783

 

 

 

1,924

 

 

 

2,338

 

Post-employment benefit obligations

 

 

2,222

 

 

 

2,182

 

 

 

2,226

 

 

 

2,235

 

 

 

2,382

 

Other liabilities

 

 

9,878

 

 

 

10,108

 

 

 

17,424

 

 

 

12,888

 

 

 

14,900

 

Total liabilities

 

 

702,375

 

 

 

650,500

 

 

 

643,432

 

 

 

637,329

 

 

 

621,253

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

50

 

 

 

50

 

 

 

52

 

 

 

53

 

 

 

54

 

Additional paid-in capital

 

 

44,078

 

 

 

43,574

 

 

 

46,740

 

 

 

48,613

 

 

 

50,937

 

Retained earnings

 

 

60,524

 

 

 

60,504

 

 

 

57,378

 

 

 

55,801

 

 

 

51,689

 

ESOP-Unearned compensation

 

 

(3,568

)

 

 

(3,615

)

 

 

(3,662

)

 

 

(3,709

)

 

 

(3,756

)

Accumulated other comprehensive income (loss), net of tax

 

 

(181

)

 

 

84

 

 

 

202

 

 

 

101

 

 

 

895

 

Total stockholders' equity

 

 

100,903

 

 

 

100,597

 

 

 

100,710

 

 

 

100,859

 

 

 

99,819

 

Total liabilities and stockholders' equity

 

$

803,278

 

 

$

751,097

 

 

$

744,142

 

 

$

738,188

 

 

$

721,072

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

7


 

 

Randolph Bancorp, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

 

% Change

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

Dec 2021 vs.

 

 

Dec 2021 vs.

 

 

 

2021

 

 

2021

 

 

2020

 

 

Sep 2021

 

 

Dec 2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

5,923

 

 

$

6,226

 

 

$

5,532

 

 

 

(4.9

)%

 

 

7.1

%

Securities-taxable

 

 

217

 

 

 

219

 

 

 

283

 

 

 

(0.9

)%

 

 

(23.3

)%

Securities-tax exempt

 

 

4

 

 

 

4

 

 

 

6

 

 

 

0.0

%

 

 

(33.3

)%

Interest-bearing deposits and certificates of deposit

 

 

13

 

 

 

4

 

 

 

7

 

 

 

225.0

%

 

 

85.7

%

Total interest and dividend income

 

 

6,157

 

 

 

6,453

 

 

 

5,828

 

 

 

(4.6

)%

 

 

5.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

308

 

 

 

299

 

 

 

541

 

 

 

3.0

%

 

 

(43.1

)%

Borrowings

 

 

155

 

 

 

178

 

 

 

247

 

 

 

(12.9

)%

 

 

(37.2

)%

Total interest expense

 

 

463

 

 

 

477

 

 

 

788

 

 

 

(2.9

)%

 

 

(41.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

5,694

 

 

 

5,976

 

 

 

5,040

 

 

 

(4.7

)%

 

 

13.0

%

Provision (credit) for loan losses

 

 

(108

)

 

 

(90

)

 

 

215

 

 

 

20.0

%

 

 

(150.2

)%

Net interest income after provision (credit) for loan losses

 

 

5,802

 

 

 

6,066

 

 

 

4,825

 

 

 

(4.4

)%

 

 

20.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

422

 

 

 

410

 

 

 

381

 

 

 

2.9

%

 

 

10.8

%

Gain on loan origination and sale activities, net

 

 

3,723

 

 

 

7,229

 

 

 

14,620

 

 

 

(48.5

)%

 

 

(74.5

)%

Mortgage servicing fees, net

 

 

257

 

 

 

274

 

 

 

275

 

 

 

(6.2

)%

 

 

(6.5

)%

Increase in cash surrender value of life insurance

 

 

41

 

 

 

41

 

 

 

45

 

 

 

0.0

%

 

 

(8.9

)%

Other

 

 

92

 

 

 

195

 

 

 

266

 

 

 

(52.8

)%

 

 

(65.4

)%

Total non-interest income

 

 

4,535

 

 

 

8,149

 

 

 

15,587

 

 

 

(44.3

)%

 

 

(70.9

)%

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

6,084

 

 

 

6,381

 

 

 

8,722

 

 

 

(4.7

)%

 

 

(30.2

)%

Occupancy and equipment

 

 

713

 

 

 

714

 

 

 

1,150

 

 

 

(0.1

)%

 

 

(38.0

)%

Data processing

 

 

237

 

 

 

367

 

 

 

280

 

 

 

(35.4

)%

 

 

(15.4

)%

Professional fees

 

 

325

 

 

 

490

 

 

 

389

 

 

 

(33.7

)%

 

 

(16.5

)%

Marketing

 

 

245

 

 

 

134

 

 

 

231

 

 

 

82.8

%

 

 

6.1

%

FDIC insurance

 

 

55

 

 

 

54

 

 

 

51

 

 

 

1.9

%

 

 

7.8

%

Other non-interest expenses

 

 

1,562

 

 

 

1,719

 

 

 

2,104

 

 

 

(9.1

)%

 

 

(25.8

)%

Total non-interest expenses

 

 

9,221

 

 

 

9,859

 

 

 

12,927

 

 

 

(6.5

)%

 

 

(28.7

)%

Income before income taxes

 

 

1,116

 

 

 

4,356

 

 

 

7,485

 

 

 

(74.4

)%

 

 

(85.1

)%

Income tax expense

 

 

330

 

 

 

1,230

 

 

 

2,211

 

 

 

(73.2

)%

 

 

(85.1

)%

Net income

 

$

786

 

 

$

3,126

 

 

$

5,274

 

 

 

(74.9

)%

 

 

(85.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.17

 

 

$

0.64

 

 

$

1.03

 

 

 

 

 

 

 

 

 

Diluted

 

$

0.16

 

 

$

0.62

 

 

$

1.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

4,743,833

 

 

 

4,869,155

 

 

 

5,135,069

 

 

 

 

 

 

 

 

 

Diluted

 

 

4,993,750

 

 

 

5,074,676

 

 

 

5,244,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular dividends declared per share

 

$

0.15

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

8


 

 

Randolph Bancorp, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share amounts)

(Unaudited)

 

 

Year to Date

 

 

% Change

 

 

 

December 31,

 

 

December 31,

 

 

Dec 2021 vs.

 

 

 

2021

 

 

2020

 

 

Dec 2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,162

 

 

$

22,212

 

 

 

4.3

%

Securities-taxable

 

 

899

 

 

 

1,273

 

 

 

(29.4

)%

Securities-tax exempt

 

 

20

 

 

 

28

 

 

 

(28.6

)%

Interest-bearing deposits and certificates of deposit

 

 

32

 

 

 

75

 

 

 

(57.3

)%

Total interest and dividend income

 

 

24,113

 

 

 

23,588

 

 

 

2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,390

 

 

 

3,778

 

 

 

(63.2

)%

Borrowings

 

 

763

 

 

 

943

 

 

 

(19.1

)%

Total interest expense

 

 

2,153

 

 

 

4,721

 

 

 

(54.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

21,960

 

 

 

18,867

 

 

 

16.4

%

Provision (credit) for loan losses

 

 

(438

)

 

 

2,553

 

 

 

(117.2

)%

Net interest income after provision (credit) for loan losses

 

 

22,398

 

 

 

16,314

 

 

 

37.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

1,618

 

 

 

1,283

 

 

 

26.1

%

Gain on loan origination and sale activities, net

 

 

27,685

 

 

 

54,236

 

 

 

(49.0

)%

Mortgage servicing fees, net

 

 

1,691

 

 

 

(1,153

)

 

 

(246.7

)%

Increase in cash surrender value of life insurance

 

 

163

 

 

 

181

 

 

 

(9.9

)%

Other

 

 

766

 

 

 

864

 

 

 

(11.3

)%

Total non-interest income

 

 

31,923

 

 

 

55,411

 

 

 

(42.4

)%

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

28,212

 

 

 

33,161

 

 

 

(14.9

)%

Occupancy and equipment

 

 

2,792

 

 

 

3,545

 

 

 

(21.2

)%

Data processing

 

 

1,168

 

 

 

943

 

 

 

23.9

%

Professional fees

 

 

1,699

 

 

 

1,277

 

 

 

33.0

%

Marketing

 

 

749

 

 

 

689

 

 

 

8.7

%

FDIC insurance

 

 

217

 

 

 

187

 

 

 

16.0

%

Other non-interest expenses

 

 

6,821

 

 

 

6,514

 

 

 

4.7

%

Total non-interest expenses

 

 

41,658

 

 

 

46,316

 

 

 

(10.1

)%

Income before income taxes

 

 

12,663

 

 

 

25,409

 

 

 

(50.2

)%

Income tax expense

 

 

3,062

 

 

 

5,477

 

 

 

(44.1

)%

Net income

 

$

9,601

 

 

$

19,932

 

 

 

(51.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.96

 

 

$

3.89

 

 

 

 

 

Diluted

 

$

1.88

 

 

$

3.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

4,896,641

 

 

 

5,126,561

 

 

 

 

 

Diluted

 

 

5,108,738

 

 

 

5,163,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular dividends declared per share

 

$

0.15

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

9


 

 

Randolph Bancorp, Inc.

Consolidated Statements of Operations Trend

(Dollars in thousands except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

5,923

 

 

$

6,226

 

 

$

5,505

 

 

$

5,508

 

 

$

5,532

 

Securities-taxable

 

 

217

 

 

 

219

 

 

 

223

 

 

 

240

 

 

 

283

 

Securities-tax exempt

 

 

4

 

 

 

4

 

 

 

6

 

 

 

6

 

 

 

6

 

Interest-bearing deposits and certificates of deposit

 

 

13

 

 

 

4

 

 

 

8

 

 

 

7

 

 

 

7

 

Total interest and dividend income

 

 

6,157

 

 

 

6,453

 

 

 

5,742

 

 

 

5,761

 

 

 

5,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

308

 

 

 

299

 

 

 

345

 

 

 

438

 

 

 

541

 

Borrowings

 

 

155

 

 

 

178

 

 

 

198

 

 

 

232

 

 

 

247

 

Total interest expense

 

 

463

 

 

 

477

 

 

 

543

 

 

 

670

 

 

 

788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

5,694

 

 

 

5,976

 

 

 

5,199

 

 

 

5,091

 

 

 

5,040

 

Provision (credit) for loan losses

 

 

(108

)

 

 

(90

)

 

 

(27

)

 

 

(213

)

 

 

215

 

Net interest income after provision (credit) for loan losses

 

 

5,802

 

 

 

6,066

 

 

 

5,226

 

 

 

5,304

 

 

 

4,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

422

 

 

 

410

 

 

 

419

 

 

 

367

 

 

 

381

 

Gain on loan origination and sale activities, net

 

 

3,723

 

 

 

7,229

 

 

 

5,740

 

 

 

10,993

 

 

 

14,620

 

Mortgage servicing fees, net

 

 

257

 

 

 

274

 

 

 

381

 

 

 

779

 

 

 

275

 

Increase in cash surrender value of life insurance

 

 

41

 

 

 

41

 

 

 

41

 

 

 

40

 

 

 

45

 

Other

 

 

92

 

 

 

195

 

 

 

235

 

 

 

244

 

 

 

266

 

Total non-interest income

 

 

4,535

 

 

 

8,149

 

 

 

6,816

 

 

 

12,423

 

 

 

15,587

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

6,084

 

 

 

6,381

 

 

 

7,310

 

 

 

8,437

 

 

 

8,722

 

Occupancy and equipment

 

 

713

 

 

 

714

 

 

 

621

 

 

 

744

 

 

 

1,150

 

Data processing

 

 

237

 

 

 

367

 

 

 

301

 

 

 

263

 

 

 

280

 

Professional fees

 

 

325

 

 

 

490

 

 

 

323

 

 

 

561

 

 

 

389

 

Marketing

 

 

245

 

 

 

134

 

 

 

200

 

 

 

170

 

 

 

231

 

FDIC insurance

 

 

55

 

 

 

54

 

 

 

54

 

 

 

54

 

 

 

51

 

Other non-interest expenses

 

 

1,562

 

 

 

1,719

 

 

 

1,818

 

 

 

1,722

 

 

 

2,104

 

Total non-interest expenses

 

 

9,221

 

 

 

9,859

 

 

 

10,627

 

 

 

11,951

 

 

 

12,927

 

Income before income taxes

 

 

1,116

 

 

 

4,356

 

 

 

1,415

 

 

 

5,776

 

 

 

7,485

 

Income tax expense (benefit)

 

 

330

 

 

 

1,230

 

 

 

(162

)

 

 

1,664

 

 

 

2,211

 

Net income

 

$

786

 

 

$

3,126

 

 

$

1,577

 

 

$

4,112

 

 

$

5,274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.17

 

 

$

0.64

 

 

$

0.32

 

 

$

0.81

 

 

$

1.03

 

Diluted

 

$

0.16

 

 

$

0.62

 

 

$

0.31

 

 

$

0.78

 

 

$

1.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

4,743,833

 

 

 

4,869,155

 

 

 

4,921,182

 

 

 

5,056,165

 

 

 

5,135,069

 

Diluted

 

 

4,993,750

 

 

 

5,074,676

 

 

 

5,135,582

 

 

 

5,254,907

 

 

 

5,244,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regular dividends declared per share

 

$

0.15

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

10


 

 

Randolph Bancorp, Inc.

Average Balances/Yields

(Dollars in thousands)

(Unaudited)

 

Three Months Ended

 

 

December 31, 2021

 

 

September 30, 2021

 

 

December 31, 2020

 

 

Average

 

 

Interest

 

 

Average

 

 

Average

 

 

Interest

 

 

Average

 

 

Average

 

 

Interest

 

 

Average

 

 

Outstanding

 

 

Earned/

 

 

Yield/

 

 

Outstanding

 

 

Earned/

 

 

Yield/

 

 

Outstanding

 

 

Earned/

 

 

Yield/

 

(Dollars in thousands)

Balance

 

 

Paid

 

 

Rate (7)

 

 

Balance

 

 

Paid

 

 

Rate (7)

 

 

Balance

 

 

Paid

 

 

Rate (7)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential (1)

$

319,855

 

 

$

2,790

 

 

 

3.46

%

 

$

345,576

 

 

$

3,021

 

 

 

3.47

%

 

$

332,349

 

 

$

3,027

 

 

 

3.62

%

Home equity

 

57,183

 

 

 

480

 

 

 

3.33

%

 

 

53,345

 

 

 

475

 

 

 

3.53

%

 

 

47,844

 

 

 

436

 

 

 

3.63

%

Commercial real estate

 

186,943

 

 

 

1,880

 

 

 

3.99

%

 

 

174,319

 

 

 

1,809

 

 

 

4.12

%

 

 

134,766

 

 

 

1,342

 

 

 

3.96

%

Construction

 

34,246

 

 

 

331

 

 

 

3.83

%

 

 

32,690

 

 

 

310

 

 

 

3.76

%

 

 

32,101

 

 

 

325

 

 

 

4.03

%

Total real estate loans

 

598,227

 

 

 

5,481

 

 

 

3.63

%

 

 

605,930

 

 

 

5,615

 

 

 

3.68

%

 

 

547,060

 

 

 

5,130

 

 

 

3.73

%

Commercial and industrial

 

18,311

 

 

 

331

 

 

 

7.17

%

 

 

22,693

 

 

 

493

 

 

 

8.62

%

 

 

21,378

 

 

 

258

 

 

 

4.80

%

Consumer

 

8,313

 

 

 

111

 

 

 

5.30

%

 

 

12,820

 

 

 

118

 

 

 

3.65

%

 

 

11,564

 

 

 

144

 

 

 

4.95

%

Total loans

 

624,851

 

 

 

5,923

 

 

 

3.76

%

 

 

641,443

 

 

 

6,226

 

 

 

3.85

%

 

 

580,002

 

 

 

5,532

 

 

 

3.79

%

Investment securities(2) (3)

 

54,314

 

 

 

222

 

 

 

1.62

%

 

 

54,229

 

 

 

224

 

 

 

1.64

%

 

 

58,329

 

 

 

290

 

 

 

1.98

%

Interest-earning deposits

 

41,161

 

 

 

13

 

 

 

0.13

%

 

 

11,002

 

 

 

4

 

 

 

0.14

%

 

 

30,573

 

 

 

7

 

 

 

0.09

%

Total interest-earning assets

 

720,326

 

 

 

6,158

 

 

 

3.39

%

 

 

706,674

 

 

 

6,454

 

 

 

3.62

%

 

 

668,904

 

 

 

5,829

 

 

 

3.47

%

Noninterest-earning assets

 

43,478

 

 

 

 

 

 

 

 

 

 

 

44,614

 

 

 

 

 

 

 

 

 

 

 

45,015

 

 

 

 

 

 

 

 

 

Total assets

$

763,804

 

 

 

 

 

 

 

 

 

 

$

751,288

 

 

 

 

 

 

 

 

 

 

$

713,919

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Savings accounts

 

191,464

 

 

 

72

 

 

 

0.15

%

 

 

189,254

 

 

 

76

 

 

 

0.16

%

 

 

181,653

 

 

 

142

 

 

 

0.31

%

  NOW accounts

 

62,838

 

 

 

29

 

 

 

0.18

%

 

 

61,951

 

 

 

23

 

 

 

0.15

%

 

 

59,005

 

 

 

43

 

 

 

0.29

%

  Money market accounts

 

77,140

 

 

 

36

 

 

 

0.19

%

 

 

73,662

 

 

 

41

 

 

 

0.22

%

 

 

75,106

 

 

 

62

 

 

 

0.33

%

  Term certificates

 

135,406

 

 

 

171

 

 

 

0.50

%

 

 

113,787

 

 

 

159

 

 

 

0.55

%

 

 

112,260

 

 

 

294

 

 

 

1.04

%

Total interest-bearing deposits

 

466,848

 

 

 

308

 

 

 

0.26

%

 

 

438,654

 

 

 

299

 

 

 

0.27

%

 

 

428,024

 

 

 

541

 

 

 

0.50

%

  FHLBB and FRB advances

 

53,592

 

 

 

155

 

 

 

1.15

%

 

 

64,047

 

 

 

178

 

 

 

1.10

%

 

 

77,584

 

 

 

247

 

 

 

1.27

%

Total interest-bearing liabilities

 

520,440

 

 

 

463

 

 

 

0.35

%

 

 

502,701

 

 

 

477

 

 

 

0.38

%

 

 

505,608

 

 

 

788

 

 

 

0.62

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Noninterest-bearing deposits

 

127,486

 

 

 

 

 

 

 

 

 

 

 

126,165

 

 

 

 

 

 

 

 

 

 

 

94,540

 

 

 

 

 

 

 

 

 

  Other noninterest-bearing liabilities

 

13,305

 

 

 

 

 

 

 

 

 

 

 

19,021

 

 

 

 

 

 

 

 

 

 

 

13,539

 

 

 

 

 

 

 

 

 

Total liabilities

 

661,231

 

 

 

 

 

 

 

 

 

 

 

647,887

 

 

 

 

 

 

 

 

 

 

 

613,687

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

102,573

 

 

 

 

 

 

 

 

 

 

 

103,401

 

 

 

 

 

 

 

 

 

 

 

100,232

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

763,804

 

 

 

 

 

 

 

 

 

 

$

751,288

 

 

 

 

 

 

 

 

 

 

$

713,919

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

5,695

 

 

 

 

 

 

 

 

 

 

$

5,977

 

 

 

 

 

 

 

 

 

 

$

5,041

 

 

 

 

 

Interest rate spread(4)

 

 

 

 

 

 

 

 

 

3.04

%

 

 

 

 

 

 

 

 

 

 

3.24

%

 

 

 

 

 

 

 

 

 

 

2.85

%

Net interest-earning assets(5)

$

199,886

 

 

 

 

 

 

 

 

 

 

$

203,973

 

 

 

 

 

 

 

 

 

 

$

163,296

 

 

 

 

 

 

 

 

 

Net interest margin(6)

 

 

 

 

 

 

 

 

 

3.14

%

 

 

 

 

 

 

 

 

 

 

3.36

%

 

 

 

 

 

 

 

 

 

 

3.00

%

Cost of deposits (8)

 

 

 

 

 

 

 

 

 

0.21

%

 

 

 

 

 

 

 

 

 

 

0.21

%

 

 

 

 

 

 

 

 

 

 

0.41

%

Cost of funds (9)

 

 

 

 

 

 

 

 

 

0.28

%

 

 

 

 

 

 

 

 

 

 

0.30

%

 

 

 

 

 

 

 

 

 

 

0.52

%

Ratio of interest-earning assets to interest-bearing liabilities

 

138.41

%

 

 

 

 

 

 

 

 

 

 

140.58

%

 

 

 

 

 

 

 

 

 

 

132.30

%

 

 

 

 

 

 

 

 

(1) Includes nonaccruing loan balances and interest received on such loans, in addition to loans held for sale.

(2) Includes carrying value of securities classified as available-for-sale and FHLBB stock.

(3) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $1,000, $1,000 and $1,000 for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(6) Net interest margin represents net interest income divided by average total interest-earning assets.

(7) During the fourth quarter of 2021, the Company changed the yield calculation method from the “30/360” to the “Actual/Actual” method. Management believes that the “Actual/Actual” method provides a more consistent and relevant metric for yield performance comparisons.

(8) Cost of deposits represents the total interest paid on deposits, divided by total interest-bearing deposits plus total noninterest-bearing deposits.

(9) Cost of funds represents the total interest paid on liabilities, divided by total interest-bearing liabilities plus total noninterest-bearing deposits.

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

11


 

Randolph Bancorp, Inc.

Average Balances/Yields

(Dollars in thousands)

(Unaudited)

 

Year to Date

 

 

December 31, 2021

 

 

December 31, 2020

 

 

Average

 

 

Interest

 

 

Average

 

 

Average

 

 

Interest

 

 

Average

 

 

Outstanding

 

 

Earned/

 

 

Yield/

 

 

Outstanding

 

 

Earned/

 

 

Yield/

 

(Dollars in thousands)

Balance

 

 

Paid

 

 

Rate (7)

 

 

Balance

 

 

Paid

 

 

Rate (7)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential (1)

$

330,326

 

 

$

11,548

 

 

 

3.50

%

 

$

318,332

 

 

$

12,142

 

 

 

3.81

%

Home equity

 

52,202

 

 

 

1,800

 

 

 

3.45

%

 

 

44,577

 

 

 

1,766

 

 

 

3.96

%

Commercial real estate

 

166,973

 

 

 

6,761

 

 

 

4.05

%

 

 

132,948

 

 

 

5,366

 

 

 

4.04

%

Construction

 

31,810

 

 

 

1,225

 

 

 

3.85

%

 

 

34,408

 

 

 

1,449

 

 

 

4.21

%

Total real estate loans

 

581,311

 

 

 

21,334

 

 

 

3.67

%

 

 

530,265

 

 

 

20,723

 

 

 

3.91

%

Commercial and industrial

 

22,082

 

 

 

1,364

 

 

 

6.18

%

 

 

17,848

 

 

 

781

 

 

 

4.38

%

Consumer

 

10,034

 

 

 

464

 

 

 

4.62

%

 

 

13,799

 

 

 

708

 

 

 

5.13

%

Total loans

 

613,427

 

 

 

23,162

 

 

 

3.78

%

 

 

561,912

 

 

 

22,212

 

 

 

3.95

%

  Investment securities(2) (3)

 

55,421

 

 

 

923

 

 

 

1.67

%

 

 

58,233

 

 

 

1,306

 

 

 

2.24

%

  Interest-earning deposits

 

32,841

 

 

 

32

 

 

 

0.10

%

 

 

30,277

 

 

 

76

 

 

 

0.25

%

Total interest-earning assets

 

701,689

 

 

 

24,117

 

 

 

3.44

%

 

 

650,422

 

 

 

23,594

 

 

 

3.63

%

Noninterest-earning assets

 

42,608

 

 

 

 

 

 

 

 

 

 

 

39,395

 

 

 

 

 

 

 

 

 

Total assets

$

744,297

 

 

 

 

 

 

 

 

 

 

$

689,817

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Savings accounts

 

190,865

 

 

 

335

 

 

 

0.18

%

 

 

161,502

 

 

 

831

 

 

 

0.51

%

  NOW accounts

 

65,978

 

 

 

138

 

 

 

0.21

%

 

 

55,396

 

 

 

185

 

 

 

0.33

%

  Money market accounts

 

74,816

 

 

 

174

 

 

 

0.23

%

 

 

71,817

 

 

 

456

 

 

 

0.63

%

  Term certificates

 

112,802

 

 

 

743

 

 

 

0.66

%

 

 

147,655

 

 

 

2,305

 

 

 

1.56

%

Total interest-bearing deposits

 

444,461

 

 

 

1,390

 

 

 

0.31

%

 

 

436,370

 

 

 

3,777

 

 

 

0.87

%

  FHLBB and FRB advances

 

59,963

 

 

 

763

 

 

 

1.27

%

 

 

71,661

 

 

 

943

 

 

 

1.32

%

Total interest-bearing liabilities

 

504,424

 

 

 

2,153

 

 

 

0.43

%

 

 

508,031

 

 

 

4,720

 

 

 

0.93

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Noninterest-bearing deposits

 

121,378

 

 

 

 

 

 

 

 

 

 

 

80,957

 

 

 

 

 

 

 

 

 

  Other noninterest-bearing liabilities

 

15,331

 

 

 

 

 

 

 

 

 

 

 

12,384

 

 

 

 

 

 

 

 

 

Total liabilities

 

641,133

 

 

 

 

 

 

 

 

 

 

 

601,372

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

103,164

 

 

 

 

 

 

 

 

 

 

 

88,445

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

744,297

 

 

 

 

 

 

 

 

 

 

$

689,817

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

21,964

 

 

 

 

 

 

 

 

 

 

$

18,874

 

 

 

 

 

Interest rate spread(4)

 

 

 

 

 

 

 

 

 

3.01

%

 

 

 

 

 

 

 

 

 

 

2.70

%

Net interest-earning assets(5)

$

197,265

 

 

 

 

 

 

 

 

 

 

$

142,391

 

 

 

 

 

 

 

 

 

Net interest margin(6)

 

 

 

 

 

 

 

 

 

3.13

%

 

 

 

 

 

 

 

 

 

 

2.90

%

Cost of deposits (8)

 

 

 

 

 

 

 

 

 

0.25

%

 

 

 

 

 

 

 

 

 

 

0.73

%

Cost of funds (9)

 

 

 

 

 

 

 

 

 

0.34

%

 

 

 

 

 

 

 

 

 

 

0.80

%

Ratio of interest-earning assets to interest-bearing liabilities

 

139.11

%

 

 

 

 

 

 

 

 

 

 

128.03

%

 

 

 

 

 

 

 

 

(1) Includes nonaccruing loan balances and interest received on such loans, in addition to loans held for sale.

(2) Includes carrying value of securities classified as available-for-sale and FHLBB stock.

(3) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $4,000 and $5,000 for the years ended December 31, 2021 and 2020, respectively.

(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(6) Net interest margin represents net interest income divided by average total interest-earning assets.

(7) During the fourth quarter of 2021, the Company changed the yield calculation method from the “30/360” to the “Actual/Actual” method. Management believes that the “Actual/Actual” method provides a more consistent and relevant metric for yield performance comparisons.

(8) Cost of deposits represents the total interest paid on deposits, divided by total interest-bearing deposits plus total noninterest-bearing deposits.

(9) Cost of funds represents the total interest paid on liabilities, divided by total interest-bearing liabilities plus total noninterest-bearing deposits.


 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

12


 

 

Randolph Bancorp, Inc.

Average Balances Trend

(Dollars in thousands)

(Unaudited)

 

 

Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

$

319,855

 

 

$

345,576

 

 

$

319,087

 

 

$

336,805

 

 

$

332,349

 

Home equity

 

 

57,183

 

 

 

53,345

 

 

 

49,789

 

 

 

48,383

 

 

 

47,844

 

Commercial real estate

 

 

186,943

 

 

 

174,319

 

 

 

159,423

 

 

 

146,683

 

 

 

134,766

 

Construction

 

 

34,246

 

 

 

32,690

 

 

 

29,902

 

 

 

30,350

 

 

 

32,101

 

Total real estate loans

 

 

598,227

 

 

 

605,930

 

 

 

558,201

 

 

 

562,221

 

 

 

547,060

 

Commercial and industrial

 

 

18,311

 

 

 

22,693

 

 

 

25,497

 

 

 

21,860

 

 

 

21,378

 

Consumer

 

 

8,313

 

 

 

12,820

 

 

 

9,052

 

 

 

9,940

 

 

 

11,564

 

Total loans

 

 

624,851

 

 

 

641,443

 

 

 

592,750

 

 

 

594,021

 

 

 

580,002

 

Investment securities

 

 

54,314

 

 

 

54,229

 

 

 

55,376

 

 

 

57,818

 

 

 

58,329

 

Interest-earning deposits

 

 

41,161

 

 

 

11,002

 

 

 

43,888

 

 

 

35,492

 

 

 

30,573

 

Total interest-earning assets

 

 

720,326

 

 

 

706,674

 

 

 

692,014

 

 

 

687,331

 

 

 

668,904

 

Non-interest earning assets

 

 

43,478

 

 

 

44,614

 

 

 

40,257

 

 

 

42,045

 

 

 

45,015

 

Total assets

 

$

763,804

 

 

$

751,288

 

 

$

732,271

 

 

$

729,376

 

 

$

713,919

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

191,464

 

 

$

189,254

 

 

$

192,434

 

 

$

190,313

 

 

$

181,653

 

NOW accounts

 

 

62,838

 

 

 

61,951

 

 

 

69,730

 

 

 

69,511

 

 

 

59,005

 

Money market accounts

 

 

77,140

 

 

 

73,662

 

 

 

72,469

 

 

 

75,994

 

 

 

75,106

 

Term certificates

 

 

135,406

 

 

 

113,787

 

 

 

104,604

 

 

 

96,978

 

 

 

112,260

 

Total interest-bearing deposits

 

 

466,848

 

 

 

438,654

 

 

 

439,237

 

 

 

432,796

 

 

 

428,024

 

FHLBB and FRB advances

 

 

53,592

 

 

 

64,047

 

 

 

51,502

 

 

 

70,857

 

 

 

77,584

 

Total interest-bearing liabilities

 

 

520,440

 

 

 

502,701

 

 

 

490,739

 

 

 

503,653

 

 

 

505,608

 

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

 

127,486

 

 

 

126,165

 

 

 

124,656

 

 

 

106,929

 

 

 

94,540

 

Other noninterest-bearing liabilities

 

 

13,305

 

 

 

19,021

 

 

 

13,606

 

 

 

15,375

 

 

 

13,539

 

Total liabilities

 

 

661,231

 

 

 

647,887

 

 

 

629,001

 

 

 

625,957

 

 

 

613,687

 

Total stockholders' equity

 

 

102,573

 

 

 

103,401

 

 

 

103,270

 

 

 

103,419

 

 

 

100,232

 

Total liabilities and stockholders' equity

 

$

763,804

 

 

$

751,288

 

 

$

732,271

 

 

$

729,376

 

 

$

713,919

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

13


 

 

Randolph Bancorp, Inc.

Interest Earned and Paid Trend

(Dollars in thousands)

(Unaudited)

 

 

Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

$

2,790

 

 

$

3,021

 

 

$

2,763

 

 

$

2,974

 

 

$

3,027

 

Home equity

 

 

480

 

 

 

475

 

 

 

412

 

 

 

433

 

 

 

436

 

Commercial real estate

 

 

1,880

 

 

 

1,809

 

 

 

1,666

 

 

 

1,406

 

 

 

1,342

 

Construction

 

 

331

 

 

 

310

 

 

 

289

 

 

 

295

 

 

 

325

 

Total real estate loans

 

 

5,481

 

 

 

5,615

 

 

 

5,130

 

 

 

5,108

 

 

 

5,130

 

Commercial and industrial

 

 

331

 

 

 

493

 

 

 

266

 

 

 

274

 

 

 

258

 

Consumer

 

 

111

 

 

 

118

 

 

 

109

 

 

 

126

 

 

 

144

 

Total loans

 

 

5,923

 

 

 

6,226

 

 

 

5,505

 

 

 

5,508

 

 

 

5,532

 

Investment securities

 

 

222

 

 

 

224

 

 

 

230

 

 

 

247

 

 

 

290

 

Interest-earning deposits

 

 

13

 

 

 

4

 

 

 

8

 

 

 

7

 

 

 

7

 

Total interest-earning assets

 

 

6,158

 

 

 

6,454

 

 

 

5,743

 

 

 

5,762

 

 

 

5,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

72

 

 

$

76

 

 

$

89

 

 

$

98

 

 

$

142

 

NOW accounts

 

 

29

 

 

 

23

 

 

 

38

 

 

 

48

 

 

 

43

 

Money market accounts

 

 

36

 

 

 

41

 

 

 

43

 

 

 

54

 

 

 

62

 

Term certificates

 

 

171

 

 

 

159

 

 

 

175

 

 

 

238

 

 

 

294

 

Total interest-bearing deposits

 

 

308

 

 

 

299

 

 

 

345

 

 

 

438

 

 

 

541

 

FHLBB and FRB advances

 

 

155

 

 

 

178

 

 

 

198

 

 

 

232

 

 

 

247

 

Total interest-bearing liabilities

 

 

463

 

 

 

477

 

 

 

543

 

 

 

670

 

 

 

788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

5,695

 

 

 

5,977

 

 

 

5,200

 

 

 

5,092

 

 

 

5,041

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

14


 

 

Randolph Bancorp, Inc.

Average Yield Trend(1)

(Dollars in thousands)

(Unaudited)

 

 

Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

 

3.46

%

 

 

3.47

%

 

 

3.47

%

 

 

3.58

%

 

 

3.62

%

Home equity

 

 

3.33

%

 

 

3.53

%

 

 

3.32

%

 

 

3.63

%

 

 

3.63

%

Commercial real estate

 

 

3.99

%

 

 

4.12

%

 

 

4.19

%

 

 

3.89

%

 

 

3.96

%

Construction

 

 

3.83

%

 

 

3.76

%

 

 

3.88

%

 

 

3.94

%

 

 

4.03

%

Total real estate loans

 

 

3.63

%

 

 

3.68

%

 

 

3.69

%

 

 

3.68

%

 

 

3.73

%

Commercial and industrial

 

 

7.17

%

 

 

8.62

%

 

 

4.18

%

 

 

5.08

%

 

 

4.80

%

Consumer

 

 

5.30

%

 

 

3.65

%

 

 

4.83

%

 

 

5.14

%

 

 

4.95

%

Total loans

 

 

3.76

%

 

 

3.85

%

 

 

3.73

%

 

 

3.76

%

 

 

3.79

%

Investment securities

 

 

1.62

%

 

 

1.64

%

 

 

1.67

%

 

 

1.73

%

 

 

1.98

%

Interest-earning deposits

 

 

0.13

%

 

 

0.14

%

 

 

0.07

%

 

 

0.08

%

 

 

0.09

%

Total interest-earning assets

 

 

3.39

%

 

 

3.62

%

 

 

3.33

%

 

 

3.40

%

 

 

3.47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

0.15

%

 

 

0.16

%

 

 

0.19

%

 

 

0.21

%

 

 

0.31

%

NOW accounts

 

 

0.18

%

 

 

0.15

%

 

 

0.22

%

 

 

0.28

%

 

 

0.29

%

Money market accounts

 

 

0.19

%

 

 

0.22

%

 

 

0.24

%

 

 

0.29

%

 

 

0.33

%

Term certificates

 

 

0.50

%

 

 

0.55

%

 

 

0.67

%

 

 

1.00

%

 

 

1.04

%

Total interest-bearing deposits

 

 

0.26

%

 

 

0.27

%

 

 

0.32

%

 

 

0.41

%

 

 

0.50

%

FHLBB and FRB advances

 

 

1.15

%

 

 

1.10

%

 

 

1.54

%

 

 

1.33

%

 

 

1.27

%

Total interest-bearing liabilities

 

 

0.35

%

 

 

0.38

%

 

 

0.44

%

 

 

0.54

%

 

 

0.62

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

3.04

%

 

 

3.24

%

 

 

2.89

%

 

 

2.86

%

 

 

2.85

%

Net interest rate margin

 

 

3.14

%

 

 

3.36

%

 

 

3.01

%

 

 

3.00

%

 

 

3.00

%

Cost of deposits

 

 

0.21

%

 

 

0.21

%

 

 

0.25

%

 

 

0.33

%

 

 

0.41

%

Cost of funds

 

 

0.28

%

 

 

0.30

%

 

 

0.35

%

 

 

0.45

%

 

 

0.52

%

Ratio of interest-earning assets to interest-bearing liabilities

 

 

138.41

%

 

 

140.58

%

 

 

141.01

%

 

 

136.47

%

 

 

132.30

%

 

(1)

During the fourth quarter of 2021, the Company changed the yield calculation method from the “30/360” to the “Actual/Actual” method. Management believes that the “Actual/Actual” method provides a more consistent and relevant metric for yield performance comparisons.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

15


 

 

Randolph Bancorp, Inc.

Rate/Volume Analysis

(Dollars in thousands)

(Unaudited)

 

 

Three Months Ended

 

 

 

December 31, 2021 vs. September 30, 2021

 

 

 

Increase (Decrease)

 

 

Total

 

 

 

Due to Changes in

 

 

Increase

 

 

 

Volume

 

 

Rate

 

 

(Decrease)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

$

(224

)

 

$

(7

)

 

 

(231

)

Home equity

 

 

33

 

 

 

(28

)

 

 

5

 

Commercial real estate

 

 

128

 

 

 

(57

)

 

 

71

 

Construction

 

 

15

 

 

 

6

 

 

 

21

 

Total real estate loans

 

 

(48

)

 

 

(86

)

 

 

(134

)

Commercial and industrial

 

 

(86

)

 

 

(76

)

 

 

(162

)

Consumer

 

 

(32

)

 

 

26

 

 

 

(6

)

Total loans

 

 

(166

)

 

 

(136

)

 

 

(302

)

Investment securities

 

 

-

 

 

 

(3

)

 

 

(3

)

Interest-earning deposits

 

 

10

 

 

 

(1

)

 

 

9

 

Total interest-earning assets

 

 

(156

)

 

 

(140

)

 

 

(296

)

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

1

 

 

 

(5

)

 

 

(4

)

NOW accounts

 

 

-

 

 

 

6

 

 

 

6

 

Money market accounts

 

 

2

 

 

 

(7

)

 

 

(5

)

Term certificates

 

 

28

 

 

 

(16

)

 

 

12

 

           Total interest-bearing deposits

 

 

31

 

 

 

(22

)

 

 

9

 

FHLBB and FRB advances

 

 

(28

)

 

 

5

 

 

 

(23

)

           Total interest-bearing liabilities

 

 

3

 

 

 

(17

)

 

 

(14

)

Change in net interest income

 

$

(159

)

 

$

(123

)

 

$

(282

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

16


 

 

Randolph Bancorp, Inc.

Rate/Volume Analysis

(Dollars in thousands)

(Unaudited)

 

 

Three Months Ended

 

 

 

December 31, 2021 vs. 2020

 

 

 

Increase (Decrease)

 

 

Total

 

 

 

Due to Changes in

 

 

Increase

 

 

 

Volume

 

 

Rate

 

 

(Decrease)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

$

(108

)

 

$

(129

)

 

 

(237

)

Home equity

 

 

81

 

 

 

(37

)

 

 

44

 

Commercial real estate

 

 

512

 

 

 

26

 

 

 

538

 

Construction

 

 

22

 

 

 

(16

)

 

 

6

 

Total real estate loans

 

 

507

 

 

 

(156

)

 

 

351

 

Commercial and industrial

 

 

(33

)

 

 

106

 

 

 

73

 

Consumer

 

 

(38

)

 

 

6

 

 

 

(32

)

Total loans

 

 

436

 

 

 

(44

)

 

 

392

 

Investment securities

 

 

(19

)

 

 

(50

)

 

 

(69

)

Interest-earning deposits

 

 

2

 

 

 

4

 

 

 

6

 

Total interest-earning assets

 

 

419

 

 

 

(90

)

 

 

329

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

8

 

 

 

(78

)

 

 

(70

)

NOW accounts

 

 

3

 

 

 

(17

)

 

 

(14

)

Money market accounts

 

 

2

 

 

 

(28

)

 

 

(26

)

Term certificates

 

 

52

 

 

 

(175

)

 

 

(123

)

           Total interest-bearing deposits

 

 

65

 

 

 

(298

)

 

 

(233

)

FHLBB and FRB advances

 

 

(71

)

 

 

(21

)

 

 

(92

)

           Total interest-bearing liabilities

 

 

(6

)

 

 

(319

)

 

 

(325

)

Change in net interest income

 

$

425

 

 

$

229

 

 

$

654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

17


 

 

Randolph Bancorp, Inc.

Rate/Volume Analysis

(Dollars in thousands)

(Unaudited)

 

 

Year to Date

 

 

 

December 31, 2021 vs. 2020

 

 

 

Increase (Decrease)

 

 

Total

 

 

 

Due to Changes in

 

 

Increase

 

 

 

Volume

 

 

Rate

 

 

(Decrease)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

1-4 family residential

 

$

445

 

 

$

(1,039

)

 

 

(594

)

Home equity

 

 

280

 

 

 

(246

)

 

 

34

 

Commercial real estate

 

 

1,368

 

 

 

27

 

 

 

1,395

 

Construction

 

 

(105

)

 

 

(119

)

 

 

(224

)

Total real estate loans

 

 

1,988

 

 

 

(1,377

)

 

 

611

 

Commercial and industrial

 

 

157

 

 

 

426

 

 

 

583

 

Consumer

 

 

(179

)

 

 

(65

)

 

 

(244

)

Total loans

 

 

1,966

 

 

 

(1,016

)

 

 

950

 

Investment securities

 

 

(60

)

 

 

(323

)

 

 

(383

)

Interest-earning deposits

 

 

6

 

 

 

(50

)

 

 

(44

)

Total interest-earning assets

 

 

1,912

 

 

 

(1,389

)

 

 

523

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

 

130

 

 

 

(626

)

 

 

(496

)

NOW accounts

 

 

31

 

 

 

(78

)

 

 

(47

)

Money market accounts

 

 

18

 

 

 

(300

)

 

 

(282

)

Term certificates

 

 

(453

)

 

 

(1,109

)

 

 

(1,562

)

           Total interest-bearing deposits

 

 

(274

)

 

 

(2,113

)

 

 

(2,387

)

FHLBB and FRB advances

 

 

(150

)

 

 

(30

)

 

 

(180

)

           Total interest-bearing liabilities

 

 

(424

)

 

 

(2,143

)

 

 

(2,567

)

Change in net interest income

 

$

2,336

 

 

$

754

 

 

$

3,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

18


 

 

Randolph Bancorp, Inc.

Quarterly Trend in Mortgage Banking Income

(Dollars in thousands)

(Unaudited)

 

 

Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Gain on loan origination and sale activities, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of mortgages and realized gain from derivative financial instruments, net

 

$

4,818

 

 

$

6,339

 

 

$

6,545

 

 

$

15,876

 

 

$

12,907

 

Net change in fair value of loans held for sale and portfolio loans accounted for at fair value

 

 

(1,360

)

 

 

549

 

 

 

1,091

 

 

 

(3,816

)

 

 

896

 

Capitalized residential mortgage loan servicing rights

 

 

942

 

 

 

783

 

 

 

1,476

 

 

 

2,797

 

 

 

2,296

 

Net change in fair value of derivative loan commitments and forward loan sale commitments

 

 

(677

)

 

 

(442

)

 

 

(3,372

)

 

 

(3,864

)

 

 

(1,479

)

Gain on loan origination and sales activities, net

 

$

3,723

 

 

$

7,229

 

 

$

5,740

 

 

$

10,993

 

 

$

14,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage servicing fees, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loan servicing fees

 

$

1,355

 

 

$

1,282

 

 

$

1,205

 

 

$

1,170

 

 

$

1,143

 

Amortization of residential mortgage loan servicing rights

 

 

(831

)

 

 

(795

)

 

 

(759

)

 

 

(812

)

 

 

(781

)

Release (provision) to the valuation allowance of mortgage loan servicing rights

 

 

43

 

 

 

39

 

 

 

(65

)

 

 

421

 

 

 

(87

)

Sub-servicer expenses (1)

 

 

(310

)

 

 

(252

)

 

 

-

 

 

 

-

 

 

 

-

 

Mortgage servicing fees, net

 

$

257

 

 

$

274

 

 

$

381

 

 

$

779

 

 

$

275

 

Total gain on loan origination and sales activities and mortgage servicing fees

 

$

3,980

 

 

$

7,503

 

 

$

6,121

 

 

$

11,772

 

 

$

14,895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal balance of loans originated for sale

 

$

222,644

 

 

$

260,519

 

 

$

309,033

 

 

$

487,675

 

 

$

443,948

 

Principal balance of loans sold

 

$

297,316

 

 

$

260,473

 

 

$

342,762

 

 

$

503,285

 

 

$

426,485

 

Ending notional amount of derivative loan commitments

 

$

85,887

 

 

$

158,085

 

 

$

139,748

 

 

$

239,509

 

 

$

396,551

 

Loans held for sale, at fair value

 

$

44,766

 

 

$

75,400

 

 

$

74,277

 

 

$

93,176

 

 

$

119,112

 

Margin on loans sold (2)

 

 

1.94

%

 

 

2.73

%

 

 

2.34

%

 

 

3.71

%

 

 

3.56

%

(1)

Sub-servicer expenses were first incurred during the three months ended September 30, 2021, due to a conversion of the Company’s mortgage loan servicing activities. Previously, all expenses related to servicing mortgage loans serviced for others were included in non-interest expenses.

(2)

Margin on loans sold is calculated as the sum of the gain on sale of mortgages and realized gain from derivative financial instruments, net, plus capitalized residential mortgage loan servicing rights divided by the principal balance of loans sold.

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

19


 

Randolph Bancorp, Inc.

Year-to-Date Trend in Mortgage Banking Income

(Dollars in thousands)

(Unaudited)

 

 

Year-to-Date

 

 

December 31,

 

 

December 31,

 

 

 

 

2021

 

 

2020

 

 

Gain on loan origination and sale activities, net

 

 

 

 

 

 

 

 

 

Gain on sale of mortgages and realized gain from derivative financial instruments, net

 

$

33,578

 

 

$

34,203

 

 

Net change in fair value of loans held for sale and portfolio loans accounted for at fair value

 

 

(3,536

)

 

 

3,263

 

 

Capitalized residential mortgage loan servicing rights

 

 

5,998

 

 

 

8,428

 

 

Net change in fair value of derivative loan commitments and forward loan sale commitments

 

 

(8,355

)

 

 

8,342

 

 

Gain on loan origination and sales activities, net

 

$

27,685

 

 

$

54,236

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage servicing fees, net

 

 

 

 

 

 

 

 

 

Residential mortgage loan servicing fees

 

$

5,012

 

 

$

3,458

 

 

Amortization of residential mortgage loan servicing rights

 

 

(3,197

)

 

 

(2,543

)

 

Release (provision) to the valuation allowance of mortgage loan servicing rights

 

 

438

 

 

 

(2,068

)

 

Sub-servicer expenses (1)

 

 

(562

)

 

 

-

 

 

Mortgage servicing fees, net

 

$

1,691

 

 

$

(1,153

)

 

Total gain on loan origination and sales activities and mortgage servicing fees

 

$

29,376

 

 

$

53,083

 

 

 

 

 

 

 

 

 

 

 

 

Principal balance of loans originated for sale

 

$

1,279,871

 

 

$

1,556,587

 

 

Principal balance of loans sold

 

$

1,403,836

 

 

$

1,497,643

 

 

Ending notional amount of derivative loan commitments

 

$

85,887

 

 

$

396,551

 

 

Loans held for sale, at fair value

 

$

44,766

 

 

$

119,112

 

 

Margin on loans sold (2)

 

 

2.82

%

 

 

2.85

%

 

(1)

Sub-servicer expenses were first incurred during the three months ended September 30, 2021, due to a conversion of the Company’s mortgage loan servicing activities. Previously, all expenses related to servicing mortgage loans serviced for others were included in non-interest expenses.

(2)

Margin on loans sold is calculated as the sum of the gain on sale of mortgages and realized gain from derivative financial instruments, net, plus capitalized residential mortgage loan servicing rights divided by the principal balance of loans sold.


 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

20


 

 

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

 

 

For the Three Months Ended December 31, 2021

 

 

 

Envision Bank

 

 

Envision Mortgage

 

 

Consolidated Total

 

Net interest income

 

$

4,916

 

 

$

778

 

 

$

5,694

 

Provision (credit) for loan losses

 

 

(108

)

 

 

-

 

 

 

(108

)

Net interest income after provision (credit) for loan losses

 

 

5,024

 

 

 

778

 

 

 

5,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

413

 

 

 

9

 

 

 

422

 

Gain on loan origination and sale activities, net (1)

 

 

-

 

 

 

4,190

 

 

 

4,190

 

Mortgage servicing fees, net

 

 

(213

)

 

 

470

 

 

 

257

 

Other

 

 

16

 

 

 

117

 

 

 

133

 

Total non-interest income

 

 

216

 

 

 

4,786

 

 

 

5,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

1,741

 

 

 

4,343

 

 

 

6,084

 

Occupancy and equipment

 

 

500

 

 

 

213

 

 

 

713

 

Other non-interest expenses

 

 

1,038

 

 

 

1,386

 

 

 

2,424

 

Total non-interest expenses

 

 

3,279

 

 

 

5,942

 

 

 

9,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and elimination of inter-segment profit

 

$

1,961

 

 

$

(378

)

 

 

1,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of inter-segment profit

 

 

 

 

 

 

 

 

 

 

(467

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

1,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

330

 

Net income

 

 

 

 

 

 

 

 

 

$

786

 

 

 

(1)

Before elimination of inter-segment profit.

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

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

21


 

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

 

 

For the Three Months Ended September 30, 2021

 

 

 

Envision Bank

 

 

Envision Mortgage

 

 

Consolidated Total

 

Net interest income

 

$

5,243

 

 

$

733

 

 

$

5,976

 

Provision (credit) for loan losses

 

 

(90

)

 

 

-

 

 

 

(90

)

Net interest income after provision (credit) for loan losses

 

 

5,333

 

 

 

733

 

 

 

6,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

394

 

 

 

16

 

 

 

410

 

Gain on loan origination and sale activities, net (1)

 

 

-

 

 

 

7,925

 

 

 

7,925

 

Mortgage servicing fees, net

 

 

(222

)

 

 

496

 

 

 

274

 

Other

 

 

105

 

 

 

131

 

 

 

236

 

Total non-interest income

 

 

277

 

 

 

8,568

 

 

 

8,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

1,742

 

 

 

4,639

 

 

 

6,381

 

Occupancy and equipment

 

 

473

 

 

 

241

 

 

 

714

 

Other non-interest expenses

 

 

1,046

 

 

 

1,718

 

 

 

2,764

 

Total non-interest expenses

 

 

3,261

 

 

 

6,598

 

 

 

9,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes and elimination of inter-segment profit

 

$

2,349

 

 

$

2,703

 

 

 

5,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of inter-segment profit

 

 

 

 

 

 

 

 

 

 

(696

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

4,356

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

1,230

 

Net income

 

 

 

 

 

 

 

 

 

$

3,126

 

(1)

Before elimination of inter-segment profit.

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

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

22


 

 

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

 

 

For the Three Months Ended December 31, 2020

 

 

 

Envision Bank

 

 

Envision Mortgage

 

 

Consolidated Total

 

Net interest income

 

$

4,265

 

 

$

775

 

 

$

5,040

 

Provision for loan losses

 

 

215

 

 

 

-

 

 

 

215

 

Net interest income after provision for loan losses

 

 

4,050

 

 

 

775

 

 

 

4,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

353

 

 

 

28

 

 

 

381

 

Gain on loan origination and sale activities, net (1)

 

 

-

 

 

 

15,062

 

 

 

15,062

 

Mortgage servicing fees, net

 

 

(100

)

 

 

375

 

 

 

275

 

Other

 

 

147

 

 

 

164

 

 

 

311

 

Total non-interest income

 

 

400

 

 

 

15,629

 

 

 

16,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

2,178

 

 

 

6,544

 

 

 

8,722

 

Occupancy and equipment

 

 

465

 

 

 

685

 

 

 

1,150

 

Other non-interest expenses

 

 

1,942

 

 

 

1,113

 

 

 

3,055

 

Total non-interest expenses

 

 

4,585

 

 

 

8,342

 

 

 

12,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and elimination of inter-segment profit

 

$

(135

)

 

$

8,062

 

 

 

7,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of inter-segment profit

 

 

 

 

 

 

 

 

 

 

(442

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

7,485

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

2,211

 

Net income

 

 

 

 

 

 

 

 

 

$

5,274

 

(1)

Before elimination of inter-segment profit.

 

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

 


 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

23


 

 

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

 

 

For the Year Ended December 31, 2021

 

 

 

Envision Bank

 

 

Envision Mortgage

 

 

Consolidated Total

 

Net interest income

 

$

18,894

 

 

$

3,066

 

 

$

21,960

 

Provision (credit) for loan losses

 

 

(438

)

 

 

-

 

 

 

(438

)

Net interest income after provision (credit) for loan losses

 

 

19,332

 

 

 

3,066

 

 

 

22,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

1,538

 

 

 

80

 

 

 

1,618

 

Gain on loan origination and sale activities, net (1)

 

 

-

 

 

 

30,347

 

 

 

30,347

 

Mortgage servicing fees, net

 

 

(622

)

 

 

2,313

 

 

 

1,691

 

Other

 

 

428

 

 

 

501

 

 

 

929

 

Total non-interest income

 

 

1,344

 

 

 

33,241

 

 

 

34,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,031

 

 

 

21,181

 

 

 

28,212

 

Occupancy and equipment

 

 

1,825

 

 

 

967

 

 

 

2,792

 

Other non-interest expenses

 

 

4,435

 

 

 

6,219

 

 

 

10,654

 

Total non-interest expenses

 

 

13,291

 

 

 

28,367

 

 

 

41,658

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes and elimination of inter-segment profit

 

$

7,385

 

 

$

7,940

 

 

 

15,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of inter-segment profit

 

 

 

 

 

 

 

 

 

 

(2,662

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

12,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

3,062

 

Net income

 

 

 

 

 

 

 

 

 

$

9,601

 

(1)

Before elimination of inter-segment profit.

 

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

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

24


 

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

 

 

For the Year Ended December 31, 2020

 

 

 

Envision Bank

 

 

Envision Mortgage

 

 

Consolidated Total

 

Net interest income

 

$

16,235

 

 

$

2,632

 

 

$

18,867

 

Provision for loan losses

 

 

2,553

 

 

 

-

 

 

 

2,553

 

Net interest income after provision for loan losses

 

 

13,682

 

 

 

2,632

 

 

 

16,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

1,180

 

 

 

103

 

 

 

1,283

 

Gain on loan origination and sale activities, net (1)

 

 

-

 

 

 

55,729

 

 

 

55,729

 

Mortgage servicing fees, net

 

 

(381

)

 

 

(772

)

 

 

(1,153

)

Other

 

 

465

 

 

 

580

 

 

 

1,045

 

Total non-interest income

 

 

1,264

 

 

 

55,640

 

 

 

56,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits (2)

 

 

9,161

 

 

 

24,000

 

 

 

33,161

 

Occupancy and equipment

 

 

1,770

 

 

 

1,775

 

 

 

3,545

 

Other non-interest expenses

 

 

5,228

 

 

 

4,382

 

 

 

9,610

 

Total non-interest expenses

 

 

16,159

 

 

 

30,157

 

 

 

46,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes and elimination of inter-segment profit

 

$

(1,213

)

 

$

28,115

 

 

 

26,902

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elimination of inter-segment profit

 

 

 

 

 

 

 

 

 

 

(1,493

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

25,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

5,477

 

Net income

 

 

 

 

 

 

 

 

 

$

19,932

 

(1)

Before elimination of inter-segment profit.

(2)

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

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

25


 

 

Randolph Bancorp, Inc.

Reconciliation of GAAP to Non-GAAP Net Income

(in thousands, except per share amounts)

Unaudited

 

 

 

 

Quarter Ended

 

 

 

 

 

December 31, 2021

 

Adjustments

 

Income Statement Section

 

Income Before Taxes

 

 

Provision for Income Taxes

 

 

Net Income

 

 

Earnings per Share (diluted)

 

GAAP basis

 

 

 

$

1,116

 

 

$

330

 

 

$

786

 

 

$

0.16

 

Loss on disposal of fixed assets

 

Non-interest income

 

 

55

 

 

 

16

 

 

 

39

 

 

 

0.01

 

Accrued severance expenses

 

Non-interest expense

 

 

26

 

 

 

7

 

 

 

19

 

 

 

-

 

Non-GAAP basis

 

 

 

$

1,197

 

 

$

353

 

 

$

844

 

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

 

 

September 30, 2021

 

Adjustments

 

Income Statement Section

 

Income Before Taxes

 

 

Provision for Income Taxes

 

 

Net Income

 

 

Earnings per Share (diluted)

 

GAAP basis

 

 

 

$

4,356

 

 

$

1,230

 

 

$

3,126

 

 

$

0.62

 

Accrued severance expenses

 

Non-interest expense

 

 

139

 

 

 

40

 

 

 

99

 

 

 

0.02

 

Other outsourcing expenses

 

Non-interest expense

 

 

190

 

 

 

54

 

 

 

136

 

 

 

0.03

 

Non-GAAP basis

 

 

 

$

4,685

 

 

$

1,324

 

 

$

3,361

 

 

$

0.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

 

 

June 30, 2021

 

Adjustments

 

Income Statement Section

 

Income Before Taxes

 

 

Provision (credit) for Income Taxes

 

 

Net Income

 

 

Earnings per Share (diluted)

 

GAAP basis

 

 

 

$

1,415

 

 

$

(162

)

 

$

1,577

 

 

$

0.31

 

Loss on disposal of fixed assets

 

Non-interest income

 

 

29

 

 

 

8

 

 

 

21

 

 

 

-

 

Accrued severance expenses

 

Non-interest expense

 

 

145

 

 

 

41

 

 

 

104

 

 

 

0.02

 

Other outsourcing expenses

 

Non-interest expense

 

 

71

 

 

 

20

 

 

 

51

 

 

 

0.01

 

Non-GAAP basis

 

 

 

$

1,660

 

 

$

(93

)

 

$

1,753

 

 

$

0.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

 

 

March 31, 2021

 

Adjustments

 

Income Statement Section

 

Income Before Taxes

 

 

Provision for Income Taxes

 

 

Net Income

 

 

Earnings per Share (diluted)

 

GAAP basis

 

 

 

$

5,776

 

 

$

1,664

 

 

$

4,112

 

 

$

0.78

 

Accrued severance expenses

 

Non-interest expense

 

 

109

 

 

 

31

 

 

 

78

 

 

 

0.01

 

Non-GAAP basis

 

 

 

$

5,885

 

 

$

1,695

 

 

$

4,190

 

 

$

0.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

 

 

December 31, 2020

 

Adjustments

 

Income Statement Section

 

Income (Loss) Before Taxes

 

 

Provision for Income Taxes

 

 

Net Income

 

 

Earnings per Share (diluted)

 

GAAP basis

 

 

 

$

7,485

 

 

$

2,211

 

 

$

5,274

 

 

$

1.01

 

Residential lending office closure

 

Non-interest expense

 

 

294

 

 

 

63

 

 

 

231

 

 

 

0.04

 

COVID-19 related expenses

 

Non-interest expense

 

 

69

 

 

 

15

 

 

 

54

 

 

 

0.01

 

Non-GAAP basis

 

 

 

$

7,848

 

 

$

2,289

 

 

$

5,559

 

 

$

1.06

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

26


 

 

Randolph Bancorp, Inc.

Reconciliation of GAAP to Non-GAAP Net Income

(in thousands, except per share amounts)

(Unaudited)

 

 

 

 

Year to Date

 

 

 

 

 

December 31, 2021

 

Adjustments

 

Income Statement Section

 

Income Before Taxes

 

 

Provision for Income Taxes

 

 

Net Income

 

 

Earnings per Share (diluted)

 

GAAP basis

 

 

 

$

12,663

 

 

$

3,062

 

 

$

9,601

 

 

$

1.88

 

Loss on disposal of fixed assets

 

Non-interest income

 

 

84

 

 

 

24

 

 

 

60

 

 

 

0.01

 

Accrued severance expenses

 

Non-interest expense

 

 

419

 

 

 

120

 

 

 

299

 

 

 

0.06

 

Other outsourcing expenses

 

Non-interest expense

 

 

261

 

 

 

75

 

 

 

186

 

 

 

0.04

 

Non-GAAP basis

 

 

 

$

13,427

 

 

$

3,281

 

 

$

10,146

 

 

$

1.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

 

 

 

December 31, 2020

 

Adjustments

 

Income Statement Section

 

Income Before Taxes

 

 

Provision for Income Taxes

 

 

Net Income

 

 

Earnings per Share (diluted)

 

GAAP basis

 

 

 

$

25,409

 

 

$

5,477

 

 

$

19,932

 

 

$

3.86

 

Retirement salary and benefits compensation

 

Non-interest expense

 

 

692

 

 

 

149

 

 

 

543

 

 

 

0.11

 

Accelerated vesting of stock-based compensation

 

Non-interest expense

 

 

683

 

 

 

147

 

 

 

536

 

 

 

0.10

 

COVID-19 related expenses

 

Non-interest expense

 

 

229

 

 

 

49

 

 

 

180

 

 

 

0.03

 

Residential lending office closure

 

Non-interest expense

 

 

294

 

 

 

63

 

 

 

231

 

 

 

0.04

 

Accrued severance expenses

 

Non-interest expense

 

 

69

 

 

 

15

 

 

 

54

 

 

 

0.01

 

Non-GAAP basis

 

 

 

$

27,376

 

 

$

5,900

 

 

$

21,476

 

 

$

4.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

27


 

 

Randolph Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

At or for the Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Return on average assets: (1, 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

0.41

%

 

 

1.66

%

 

 

0.86

%

 

 

2.26

%

 

 

2.95

%

Non-GAAP (2)

 

 

0.44

%

 

 

1.79

%

 

 

0.96

%

 

 

2.30

%

 

 

3.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity: (1, 6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

3.07

%

 

 

12.09

%

 

 

6.11

%

 

 

15.90

%

 

 

21.05

%

Non-GAAP (2)

 

 

3.29

%

 

 

13.00

%

 

 

6.79

%

 

 

16.21

%

 

 

22.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (10)

 

 

3.14

%

 

 

3.36

%

 

 

3.01

%

 

 

3.00

%

 

 

3.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income to total income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

44.33

%

 

 

57.69

%

 

 

56.73

%

 

 

70.93

%

 

 

75.57

%

Non-GAAP (2)

 

 

44.63

%

 

 

57.69

%

 

 

56.83

%

 

 

70.93

%

 

 

75.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit percentage (9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

9.85

%

 

 

30.20

%

 

 

11.55

%

 

 

31.76

%

 

 

37.33

%

Non-GAAP (2)

 

 

10.59

%

 

 

32.53

%

 

 

13.56

%

 

 

32.39

%

 

 

39.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio: (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

90.15

%

 

 

69.80

%

 

 

88.45

%

 

 

68.24

%

 

 

62.67

%

Non-GAAP (2)

 

 

89.41

%

 

 

67.47

%

 

 

86.44

%

 

 

67.61

%

 

 

60.91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets (3)

 

 

13.23

%

 

 

13.38

%

 

 

13.72

%

 

 

13.81

%

 

 

13.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of total assets (4)

 

 

0.33

%

 

 

0.20

%

 

 

0.86

%

 

 

1.14

%

 

 

1.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a percentage of total loans (4)

 

 

1.14

%

 

 

1.13

%

 

 

1.19

%

 

 

1.32

%

 

 

1.39

%

Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4)

 

 

1.15

%

 

 

1.14

%

 

 

1.22

%

 

 

1.36

%

 

 

1.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a percentage of non-performing assets

 

 

239.67

%

 

 

427.66

%

 

 

101.89

%

 

 

78.99

%

 

 

94.58

%

Allowance for loan losses as a percentage of non-performing loans

 

 

239.67

%

 

 

427.66

%

 

 

101.89

%

 

 

77.75

%

 

 

92.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (8)

 

$

19.73

 

 

$

19.71

 

 

$

19.16

 

 

$

18.80

 

 

$

18.16

 

Outstanding shares

 

 

5,113,825

 

 

 

5,103,619

 

 

 

5,254,522

 

 

 

5,364,240

 

 

 

5,495,514

 

 

(1)

Annualized for quarterly periods presented.

 

(2)

See page 26 – Reconciliation of GAAP to Non-GAAP Net Income.

 

(3)

Average assets calculated on a quarterly basis for all periods presented.

 

(4)

Total loans exclude loans held for sale but includes net deferred loan costs and fees.

 

(5)

This non-GAAP measure represents net income divided by average total assets.

 

(6)

This non-GAAP measure represents net income divided by average stockholders’ equity.

 

(7)

This non-GAAP measure represents total non-interest expenses divided by net interest income and non-interest income.

 

(8)

This non-GAAP measure represents total stockholders’ equity, minus intangible assets of $24,000, $26,000, $28,000, $31,000, and $33,000 at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively, divided by outstanding shares at period end.

 

(9)

This non-GAAP measure represents net interest income plus noninterest income less non-interest expense divided by net interest income plus non-interest income.

 

(10)

During the fourth quarter of 2021, the Company changed the yield calculation method from the “30/360” to the “Actual/Actual” method. Management believes that the “Actual/Actual” method provides a more consistent and relevant metric for yield performance comparisons.

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

28


 

 

Randolph Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

 

 

At or for the Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Return on average assets: (1, 5)

 

 

 

 

 

 

 

 

GAAP

 

 

1.29

%

 

 

2.89

%

Non-GAAP (2)

 

 

1.36

%

 

 

3.11

%

 

 

 

 

 

 

 

 

 

Return on average equity: (1, 6)

 

 

 

 

 

 

 

 

GAAP

 

 

9.31

%

 

 

22.54

%

Non-GAAP (2)

 

 

9.83

%

 

 

24.28

%

 

 

 

 

 

 

 

 

 

Net interest margin (10)

 

 

3.13

%

 

 

2.90

%

 

 

 

 

 

 

 

 

 

Non-interest income to total income:

 

 

 

 

 

 

 

 

GAAP

 

 

59.25

%

 

 

74.60

%

Non-GAAP (2)

 

 

59.31

%

 

 

74.60

%

 

 

 

 

 

 

 

 

 

Profit percentage (9)

 

 

 

 

 

 

 

 

GAAP

 

 

22.69

%

 

 

37.65

%

Non-GAAP (2)

 

 

24.07

%

 

 

39.80

%

 

 

 

 

 

 

 

 

 

Efficiency ratio: (7)

 

 

 

 

 

 

 

 

GAAP

 

 

77.31

%

 

 

62.35

%

Non-GAAP (2)

 

 

75.93

%

 

 

59.71

%

 

 

 

 

 

 

 

 

 

Tier 1 capital to average assets (3)

 

 

13.58

%

 

 

13.85

%

 

 

 

 

 

 

 

 

 

Non-performing assets as a percentage of total assets (4)

 

 

0.33

%

 

 

1.01

%

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a percentage of total loans (4)

 

 

1.14

%

 

 

1.39

%

Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4)

 

 

1.15

%

 

 

1.41

%

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a percentage of non-performing assets

 

 

239.67

%

 

 

94.58

%

Allowance for loan losses as a percentage of non-performing loans

 

 

239.67

%

 

 

92.87

%

 

 

 

 

 

 

 

 

 

Tangible book value per share (8)

 

$

19.73

 

 

$

18.16

 

Outstanding shares

 

 

5,113,825

 

 

 

5,495,514

 

 

(1)

Annualized for quarterly periods presented.

 

(2)

See page 27 – Reconciliation of GAAP to Non-GAAP Net Income.

 

(3)

Average assets calculated on an annual basis for all periods presented.

 

(4)

Total loans exclude loans held for sale but includes net deferred loan costs and fees.

 

(5)

This non-GAAP measure represents net income divided by average total assets.

 

(6)

This non-GAAP measure represents net income divided by average stockholders’ equity.

 

(7)

This non-GAAP measure represents total non-interest expenses divided by net interest income and non-interest income.

 

(8)

This non-GAAP measure represents total stockholders’ equity, minus intangible assets of $24,000 and $33,000 at December 31, 2021 and December 31, 2020, respectively, divided by outstanding shares at period end.

 

(9)

This non-GAAP measure represents net interest income plus noninterest income less non-interest expense divided by net interest income plus non-interest income.

 

(10)

During the fourth quarter of 2021, the Company changed the yield calculation method from the “30/360” to the “Actual/Actual” method. Management believes that the “Actual/Actual” method provides a more consistent and relevant metric for yield performance comparisons.

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

29


 

 

Randolph Bancorp, Inc.

COVID-19 Supplemental Disclosure

(Unaudited)

 

Loan Payment Deferrals

 

 

As of December 31, 2021

 

 

 

Commercial loans

 

 

Residential and consumer loans

 

 

Residential loans serviced for others

 

 

 

(Dollars in thousands)

 

Balance outstanding

 

$

226,234

 

 

$

323,603

 

 

$

1,975,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COVID-19 related loan payment deferrals:

 

 

 

 

 

 

 

 

 

 

 

 

Loans in COVID-19-related loan payment deferral

 

$

-

 

 

$

1,991

 

 

$

5,292

 

Loans in deferral as a percentage of category loans

 

 

0.0

%

 

 

0.6

%

 

 

0.3

%

Loans with suspended payment

 

$

-

 

 

$

1,991

 

 

$

2,026

 

Loans with reduced payment

 

 

-

 

 

 

-

 

 

 

3,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans which obtained a COVID-19-related payment deferral but

 

 

 

 

 

 

 

 

 

 

 

 

have since resumed payment

 

$

37,539

 

 

$

17,115

 

 

$

63,084

 

Loans reinstated (borrower paid any unpaid principal and interest)

 

 

23,267

 

 

 

1,426

 

 

 

4,499

 

Loans on a repayment plan

 

 

-

 

 

 

-

 

 

 

1,313

 

Loans which resumed payment but deferred principal and/or

 

 

 

 

 

 

 

 

 

 

 

 

interest payments to maturity

 

 

4,549

 

 

 

8,494

 

 

 

31,025

 

Loans which were paid off completely

 

 

9,723

 

 

 

7,195

 

 

 

26,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

30


 

 

Randolph Bancorp, Inc.

COVID-19 Supplemental Disclosure

(Unaudited)

 

COVID-19 Highly Impacted Sectors

 

 

As of December 31, 2021

 

 

 

Exposure Balance

 

 

Exposure by Risk Weighting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance

 

 

 

 

 

 

 

Real

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

with

 

 

 

 

 

 

 

Estate

 

 

&

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

Industry (1)

 

Total

 

 

Secured

 

 

Industrial

 

 

Construction

 

 

Pass

 

 

Criticized

 

 

Payments

 

 

 

(Dollars in thousands)

 

Group home/care facility

 

$

1,042

 

 

$

1,042

 

 

$

-

 

 

$

-

 

 

$

1,042

 

 

$

-

 

 

$

-

 

Hotels/hospitality

 

 

9,506

 

 

 

9,453

 

 

 

53

 

 

 

-

 

 

 

53

 

 

 

9,453

 

 

 

-

 

Restaurants/food service

 

 

2,488

 

 

 

1,468

 

 

 

1,020

 

 

 

-

 

 

 

2,489

 

 

 

-

 

 

 

-

 

Retail/shopping center

 

 

15,642

 

 

 

11,980

 

 

 

-

 

 

 

3,662

 

 

 

14,635

 

 

 

1,006

 

 

 

-

 

Other sectors (2)

 

 

8,851

 

 

 

8,592

 

 

 

59

 

 

 

200

 

 

 

8,852

 

 

 

-

 

 

 

-

 

Total loans in COVID-19 impacted sectors

 

$

37,529

 

 

$

32,535

 

 

$

1,132

 

 

$

3,862

 

 

$

27,071

 

 

$

10,459

 

 

$

-

 

Percentage of commercial loans outstanding

 

16.6%

 

 

16.5%

 

 

6.6%

 

 

33.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans outstanding

 

$

226,234

 

 

$

197,423

 

 

$

17,242

 

 

$

11,569

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan to value secured by real estate (3)

 

 

 

 

 

59.4%

 

 

 

 

 

 

62.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

This disclosure focuses on industries with balances that are significant to the portfolio at December 31, 2021 and omits industries affected by the COVID-19 pandemic (oil and gas, transportation, etc.) to which the Company has minimal or no exposure. This disclosure also excludes SBA PPP Loans, given their government guarantee.

 

(2)

Includes customers operating in various sectors which have been impacted by COVID-19.

 

(3)

Loan to value secured by real estate equals the exposure balance divided by the most recent appraised value.

 

2 Batterymarch Park, Suite 301, Quincy, MA 02169  |  877.963.2100  |  randolphbancorp.com

 

31

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Document and Entity Information
Jan. 25, 2022
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jan. 25, 2022
Entity Registrant Name Randolph Bancorp, Inc.
Entity Central Index Key 0001667161
Entity Emerging Growth Company false
Entity File Number 001-37780
Entity Incorporation, State or Country Code MA
Entity Tax Identification Number 81-1844402
Entity Address, Address Line One 2 Batterymarch Park
Entity Address, Address Line Two Suite 301
Entity Address, City or Town Quincy
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02169
City Area Code 877
Local Phone Number 963-2100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $.01 per share
Trading Symbol RNDB
Security Exchange Name NASDAQ
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