QUINCY, Mass., July 27, 2021 (GLOBE NEWSWIRE) -- Randolph Bancorp, Inc. (the “Company”) (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the “Bank”), today announced net income of $1.6 million, or $0.32 per basic share and $0.31 per diluted share, for the three months ended June 30, 2021 compared to net income of $4.1 million, or $0.81 per basic and $0.78 per diluted share, for the three months ended March 31, 2021 and net income of $5.2 million, or $1.02 per basic and diluted share, for the three months ended June 30, 2020. Excluding one-time events of $145,000 in severance expenses, $71,000 in other outsourcing expenses, and $29,000 in losses on disposals of fixed assets, earnings were $1.8 million, or $0.34 per diluted share, for the three months ended June 30, 2021. Excluding one-time charges of $109,000 in severance expenses, earnings were $4.2 million, or $0.79 per diluted share, for the three months ended March 31, 2021. Excluding $189,000 of operating expenses related to addressing the COVID-19 pandemic, net income for the three months ended June 30, 2020 was $5.4 million, or $1.06 per diluted share.
For the six months ended June 30, 2021, net income was $5.7 million, or $1.10 per diluted share, compared to net income of $4.4 million, or $0.86 per diluted share, for the six months ended June 30, 2020. Net income on a non-GAAP basis, excluding certain nonrecurring items, was $5.9 million, or $1.15 per diluted share, for the six months ended June 30, 2021, compared to net income on a non-GAAP basis, excluding other certain nonrecurring items, of $6.0 million, or $1.17 per diluted share, for the six months ended June 30, 2020.
At June 30, 2021, total assets amounted to $744.1 million, compared to $738.2 million at March 31, 2021, an increase of $6.0 million, or 0.8%. Total loans increased by $48.6 million, or 9.8%, to $546.4 million at June 30, 2021 from $497.8 million at March 31, 2021, whereas loans held for sale decreased by $18.9 million to $74.3 million at June 30, 2021 from $93.2 million at March 31, 2021. Compared to June 30, 2020, total assets grew $20.1 million, or 2.8% from $724.0 million. The growth from the prior year period was driven by an increase in total loans of $50.4 million, or 10.2%, and an increase in loans held for sale of $12.6 million, partially offset by a decrease in cash and cash equivalents of $41.1 million.
William M. Parent, President and Chief Executive Officer, stated, “The second quarter was a positive quarter for our Company as we continued to see progress along our operating path. Strong loan growth, higher net interest margin, net interest income growth and improved credit metrics all reflect building momentum. The earnings decline from prior quarters reflects the normalization of the mortgage market as declining refinancing volume and compressed margins resulted in significantly lower overall originations and related income. We continue to work diligently to right size our operations to reflect market conditions but there will be a lagging period before our overall operating leverage initiatives are realized. We are pleased with the developments post re-opening of our local market and remain optimistic that we can continue to grow our business and generate recurring operating leverage.”
Second Quarter Operating Results
Net interest income increased by $108,000, or 2.1%, to $5.2 million for the three months ended June 30, 2021 from $5.1 million for the three months ended March 31, 2021. This increase was primarily due to a decrease in the cost of term certificates and a decrease in the volume of Federal Home Loan Bank of Boston (“FHLBB”) advances from the prior quarter. The average cost of certificates of deposit decreased by 31 basis points from the prior quarter, and the average balance of FHLBB advances decreased $19.4 million, or 27.3%, from the prior quarter. This contributed to a decrease of 9 basis points in the cost of interest-bearing liabilities in the second quarter of 2021. The improvement in the cost of funding was partially offset by a decrease in the average yield earned on interest-earning assets of 3 basis points, driven by declines in the volume of and yield on investment securities. Accordingly, the net interest margin increased by 4 basis points, to 3.00% in the second quarter from 2.96% in the first quarter.
Net interest income increased by $466,000, or 9.8%, to $5.2 million for the three months ended June 30, 2021 from $4.7 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin increased by 12 basis points to 3.00%, from 2.88%. The improvement reflects the shortening and downward pricing of deposit liabilities, which exceeded the decrease in rates earned on interest-earning assets in the lower interest rate environment. The cost of interest-bearing liabilities decreased by 59 basis points, whereas the yield on interest-earning assets declined by 36 basis points between periods.
The Company recognized a credit for loan losses of $27,000 for the quarter ended June 30, 2021, driven by changes in the qualitative factors related to the impact of the COVID-19 pandemic and the economic outlook used in the Company’s calculation, along with improvements in credit quality trends, which were partially offset by total loan growth of $48.6 million from the prior quarter. The allowance for loan losses was 1.19%, 1.32% and 1.22% of total loans at June 30, 2021, March 31, 2021 and June 30, 2020, respectively, and was 101.9%, 79.0% and 179.3% of non-performing assets at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
Non-interest income decreased $5.6 million, or 45.1%, to $6.8 million for the quarter ended June 30, 2021 from $12.4 million in the quarter ended March 31, 2021, due to a decrease of $5.3 million in the net gain on loan origination and sale activities, in addition to a decrease in net mortgage servicing fees of $398,000. Sold mortgages totaled $342.8 million in the second quarter of 2021, compared to $503.3 million in the first quarter of 2021. The second quarter of 2021 ended with a mortgage pipeline of $139.7 million, compared to a pipeline of $239.5 million at the end of the first quarter of 2021, contributing to the decrease in the net gain on loan origination and sales activities. Mortgage servicing fees decreased $398,000, or 51.1%, to $381,000 for the second quarter of 2021 from $779,000 in the first quarter of 2021 due to a positive fair value adjustment of $421,000 in the first quarter of 2021, based on an increase in mortgage interest rates from the end of 2020, and an impairment charge of $65,000 taken in the second quarter of 2021, as mortgage interest rates declined slightly from the prior quarter.
Non-interest income decreased $6.7 million, or 49.5%, to $6.8 million for the quarter ended June 30, 2021 from $13.5 million for the quarter ended June 30, 2020, principally due to a decrease of $8.6 million in the net gain on loan origination and sale activities, partially offset by an increase of $1.7 million in net mortgage servicing fees. Sold mortgage loans totaled $342.8 million in the second quarter of 2021, compared to sold mortgage loans of $442.9 million during the second quarter of 2020. The second quarter of 2021 ended with a mortgage pipeline of $139.7 million, compared to a pipeline of $329.3 million at the end of the second quarter of 2020. Mortgage servicing fees increased $1.7 million in the quarter ended June 30, 2021, principally due to an impairment of mortgage servicing rights of $1.5 million in the quarter ended June 30, 2020.
Non-interest expenses decreased $1.3 million, or 11.1%, to $10.6 million in the quarter ended June 30, 2021 from $12.0 million in the quarter ended March 31, 2021. The decrease was due to a decrease in salaries and employee benefits expense of $1.1 million, or 13.4%, primarily driven by lower commissions paid on mortgage originations and a decrease in professional fees of $238,000 or 42.4% from the prior quarter. Occupancy and equipment expenses decreased $123,000 in the quarter ended June 30, 2021 from the prior quarter due to the closing of residential lending offices.
Non-interest expenses decreased $752,000 to $10.6 million in the quarter ended June 30, 2021 from $11.4 million in the quarter ended June 30, 2020. The decrease is principally due to a decrease in salaries and employee benefits of $1.1 million, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production, partially offset by a $401,000 increase in other non-interest expenses, which included an increase in the provision for unfunded commitments, driven by growth in unfunded commercial real estate and commercial construction commitments as of June 30, 2021.
The income tax benefit was $162,000 for the three months ended June 30, 2021 compared to income tax expense of $1.7 million and $594,000 for the three months ended March 31, 2021 and June 30, 2020, respectively. During the three months ended June 30, 2021, the Company reversed a valuation allowance on its charitable contribution carryforwards totaling $531,000. The remaining income tax expense for 2021 is expected to reflect an effective tax rate of 28.5%.
Year-to-Date Operating Results
Net interest income increased by $1.1 million, or 12.4%, for the six months ended June 30, 2021 compared to the same period in the prior year. The change reflects the shortening and downward pricing of deposit liabilities, exceeding the decreases in the rates earned on interest-earning assets because of the lower interest-rate environment. In addition, the composition of our deposit base improved as the average balance of savings and NOW accounts for the six months ended June 30, 2021 increased $44.7 million, or 30.5%, and $26.8 million, or 62.6%, respectively, from the six months ended June 30, 2020, while the average balance of our term certificates decreased $73.1 million, or 42.0%, from the prior year. The activity resulted in a 69 basis point decrease in the cost of interest-bearing liabilities.
The Company recognized a credit for loan losses of $240,000 for the six months ended June 30, 2021 compared to a provision of $1.8 million in the prior year period. At June 30, 2021, improvements to qualitative factors related to the impact of the COVID-19 pandemic, the economic outlook, and credit quality trends all helped to generate the credit for loan losses, partially offset by provisions for loan growth.
Non-interest income decreased $712,000, or 3.6%, to $19.2 million for the six months ended June 30, 2021 from $20.0 million in the six months ended June 30, 2020, principally due to a decrease of $4.8 million in the net gain on loan origination and sale activities. Mortgage loans sold were $846.0 million in the first half of 2021, compared to $657.9 million in the first half of 2020. Net gain on loan origination and sale activities decreased, while mortgage loans sold increased compared to the prior year quarter, as a result of both shrinking loan sale margins and the impact of a decreasing mortgage banking pipeline during the six months ended June 30, 2021 compared to an increasing mortgage banking pipeline during the six months ended June 30, 2020. Mortgage servicing fees increased $3.8 million in the first half of 2021 to $1.2 million from a loss of $2.6 million in the first half of 2020, due to positive fair value adjustments of $356,000 in the first half of 2021 and impairment charges of $3.1 million in the first half of 2020.
Non-interest expenses increased $240,000, or 1.1%, to $22.6 million for the six months ended June 30, 2021 from $22.3 million for the six months ended June 30, 2020. Non-interest expenses in the first half of 2020 included one-time charges of $1,375,000 related to the retirement of senior executives as well as $207,000 of COVID-19 pandemic-related expenses. Increases to non-interest expenses during the six months ended June 30, 2021 related to higher recurring salaries and benefits and other non-interest expenses related to increased mortgage loan production, professional fees associated with the outsourcing of the Company’s residential loan servicing functions, and an increase in the provision for unfunded commitments related to new commercial real estate and commercial construction commitments. Occupancy and equipment expenses decreased $172,000 in the first half of 2021 over the prior year period, partly as a result of decreased rental expenses due to the closures of residential lending offices, in addition to the absence of significant COVID-19 pandemic spending on cleaning and supplies.
Income tax expenses increased to $1.5 million for the six months ended June 30, 2021 from $605,000 for the six months ended June 30, 2020. The current period included a reversal of a charitable contribution carryforward valuation allowance, and the prior period included the utilization of net operating loss carryforwards.
Balance Sheet
At June 30, 2021, total assets amounted to $744.1 million, compared to $738.2 million at March 31, 2021, an increase of $6.0 million, or 0.8%. A $48.7 million increase in net loans from the prior quarter was partially offset by a $20.1 million decrease in cash and cash equivalents and an $18.9 million decrease in loans held for sale. Net loan growth of 9.9% was driven by 1-4 family residential real estate growth of $24.8 million and commercial real estate growth of $20.8 million. Deposits increased by $11.7 million in the quarter, including an increase of $6.1 million in non-interest bearing deposits. In addition, the Company reduced borrowings by $10 million in the quarter.
Total assets at June 30, 2021 increased $20.1 million, or 2.8% from $724.0 million at June 30, 2020. Contributing to asset growth was a $49.7 million increase in net loans to $540.7 million at June 30, 2021 from $490.9 million at June 30, 2020. Cash and cash equivalents decreased by $41.1 million, or 54.1%, to $34.9 million at June 30, 2021 from $76.0 million at June 30, 2020, mainly to fund growth in net loans as well as loans held for sale. Commercial real estate loans increased by $32.9 million, or 24.4%, as we focus on diversifying our loan mix. The increase in total assets from the prior year quarter was also funded by continued deposit growth. Retail deposits totaled $514.9 million at June 30, 2021, increasing by $31.9 million, or 6.6%, from $483.0 million at June 30, 2020. Driving the growth in retail deposits was customers’ receipt of government stimulus and our focus on deposit gathering. FHLBB advances decreased by $21.9 million to $50.0 million at June 30, 2021, from $71.9 million at June 30, 2020. Federal Reserve Bank advances decreased by $15.0 million between periods.
Total stockholders’ equity was $100.7 million at June 30, 2021 compared to $100.9 million at March 31, 2021. The decrease of $149,000 reflects share repurchases during the period of $2.2 million, partially offset by net income of $1.6 million and an increase in the fair value of available-for-sale securities, net of taxes, of $97,000.
Total stockholders’ equity was $100.7 million at June 30, 2021 compared to $84.5 million at June 30, 2020. The increase of $16.2 million relates mainly to net income from the previous twelve months of $21.2 million, partially offset by share repurchases of $5.4 million and a decrease in the fair value of available-for-sale securities, net of taxes, of $879,000.
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 Small Business Administration’s (“SBA’s”) Paycheck Protection Program (“PPP”), for which we funded $26.2 million of SBA PPP Loans through June 30, 2021, and granting payment deferrals for residential mortgage, home equity and certain commercial borrowers who were current in their payments at the time the deferral was requested. Depending on the circumstances of the borrowers, the forbearance calls for a reduced or full deferral of payment. Please refer to the Loan Payment Deferrals and COVID-19 Highly Impacted Sectors for statistics on loan payment deferrals and the commercial loan sectors we believe could 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. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the negative impacts and disruptions of the COVID-19 pandemic and the measures taken to contain its spread on the Company’s employees, customers, business operations, credit quality, financial position, liquidity and results of operations; changes in the general business and economic conditions on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in consumer behavior due to changing political, business and economic conditions or legislative or regulatory initiatives; reputational risk relating to the Company’s participation in the 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 Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as return on average assets, return on average equity, the efficiency ratio, profit percentage, tangible book value per share, non-interest income to total income and, where applicable, as adjusted for non-recurring items. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of on-going business activities, and to enhance comparability with peers across the financial services sector.
Randolph Bancorp, Inc.
Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
| % Change | ||||||||||||||||||
| June 30, | March 31, | June 30, | Jun 2021 vs. | Jun 2021 vs. | ||||||||||||||
| 2021 | 2021 | 2020 | Mar 2021 | Jun 2020 | ||||||||||||||
| Assets | ||||||||||||||||||
| Cash and cash equivalents | $ | 34,876 | $ | 54,950 | $ | 76,003 | (36.5 | )% | (54.1 | )% | ||||||||
| Certificates of deposit | - | - | 490 | - | % | (100.0 | )% | |||||||||||
| Securities available for sale, at fair value | 50,212 | 54,148 | 54,462 | (7.3 | )% | (7.8 | )% | |||||||||||
| Loans held for sale, at fair value | 74,277 | 93,176 | 61,673 | (20.3 | )% | 20.4 | % | |||||||||||
| Loans: | ||||||||||||||||||
| 1-4 family residential | 263,992 | 239,190 | 246,236 | 10.4 | % | 7.2 | % | |||||||||||
| Home equity | 50,555 | 49,073 | 43,493 | 3.0 | % | 16.2 | % | |||||||||||
| Commercial real estate | 167,691 | 146,930 | 134,750 | 14.1 | % | 24.4 | % | |||||||||||
| Construction | 29,140 | 29,975 | 35,181 | (2.8 | )% | (17.2 | )% | |||||||||||
| Total real estate loans | 511,378 | 465,168 | 459,660 | 9.9 | % | 11.3 | % | |||||||||||
| Commercial and industrial | 25,826 | 23,869 | 22,940 | 8.2 | % | 12.6 | % | |||||||||||
| Consumer | 9,194 | 8,724 | 13,435 | 5.4 | % | (31.6 | )% | |||||||||||
| Total loans | 546,398 | 497,761 | 496,035 | 9.8 | % | 10.2 | % | |||||||||||
| Allowance for loan losses | (6,523 | ) | (6,563 | ) | (6,059 | ) | (0.6 | )% | 7.7 | % | ||||||||
| Net deferred loan costs and fees, and purchase premiums | 785 | 785 | 962 | 0.0 | % | (18.4 | )% | |||||||||||
| Loans, net | 540,660 | 491,983 | 490,938 | 9.9 | % | 10.1 | % | |||||||||||
| Federal Home Loan Bank of Boston stock, at cost | 2,855 | 3,576 | 4,072 | (20.2 | )% | (29.9 | )% | |||||||||||
| Accrued interest receivable | 1,523 | 1,501 | 1,760 | 1.5 | % | (13.5 | )% | |||||||||||
| Mortgage servicing rights, net | 15,375 | 14,744 | 8,094 | 4.3 | % | 90.0 | % | |||||||||||
| Premises and equipment, net | 5,115 | 4,709 | 5,313 | 8.6 | % | (3.7 | )% | |||||||||||
| Bank-owned life insurance | 8,703 | 8,662 | 8,532 | 0.5 | % | 2.0 | % | |||||||||||
| Foreclosed real estate, net | - | 132 | 132 | (100.0 | )% | (100.0 | )% | |||||||||||
| Other assets | 10,546 | 10,607 | 12,572 | (0.6 | )% | (16.1 | )% | |||||||||||
| Total assets | $ | 744,142 | $ | 738,188 | $ | 724,041 | 0.8 | % | 2.8 | % | ||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Non-interest bearing | $ | 124,683 | $ | 118,623 | $ | 89,014 | 5.1 | % | 40.1 | % | ||||||||
| Savings accounts | 190,584 | 192,712 | 165,234 | (1.1 | )% | 15.3 | % | |||||||||||
| NOW accounts | 51,059 | 62,772 | 48,014 | (18.7 | )% | 6.3 | % | |||||||||||
| Money market accounts | 73,967 | 78,236 | 75,827 | (5.5 | )% | (2.5 | )% | |||||||||||
| Term certificates | 74,631 | 75,690 | 104,905 | (1.4 | )% | (28.9 | )% | |||||||||||
| Interest bearing brokered | 57,059 | 32,225 | 55,972 | 77.1 | % | 1.9 | % | |||||||||||
| Total deposits | 571,983 | 560,258 | 538,966 | 2.1 | % | 6.1 | % | |||||||||||
| Federal Reserve Bank advances | - | - | 15,010 | - | % | (100.0 | )% | |||||||||||
| Federal Home Loan Bank of Boston advances | 50,016 | 60,024 | 71,944 | (16.7 | )% | (30.5 | )% | |||||||||||
| Mortgagors' escrow accounts | 1,783 | 1,924 | 1,824 | (7.3 | )% | (2.2 | )% | |||||||||||
| Post-employment benefit obligations | 2,226 | 2,235 | 2,319 | (0.4 | )% | (4.0 | )% | |||||||||||
| Other liabilities | 17,424 | 12,888 | 9,449 | 35.2 | % | 84.4 | % | |||||||||||
| Total liabilities | 643,432 | 637,329 | 639,512 | 1.0 | % | 0.6 | % | |||||||||||
| Stockholders' Equity: | ||||||||||||||||||
| Common stock | 52 | 53 | 55 | (1.9 | )% | (5.5 | )% | |||||||||||
| Additional paid-in capital | 46,740 | 48,613 | 51,013 | (3.9 | )% | (8.4 | )% | |||||||||||
| Retained earnings | 57,378 | 55,801 | 36,130 | 2.8 | % | 58.8 | % | |||||||||||
| ESOP-Unearned compensation | (3,662 | ) | (3,709 | ) | (3,850 | ) | (1.3 | )% | (4.9 | )% | ||||||||
| Accumulated other comprehensive income, net of tax | 202 | 101 | 1,181 | 100.0 | % | (82.9 | )% | |||||||||||
| Total stockholders' equity | 100,710 | 100,859 | 84,529 | (0.1 | )% | 19.1 | % | |||||||||||
| Total liabilities and stockholders' equity | $ | 744,142 | $ | 738,188 | $ | 724,041 | 0.8 | % | 2.8 | % | ||||||||
Randolph Bancorp, Inc.
Consolidated Balance Sheet Trend
(Dollars in thousands)
(Unaudited)
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and cash equivalents | $ | 34,876 | $ | 54,950 | $ | 13,774 | $ | 49,091 | $ | 76,003 | |||||||||
| Certificates of deposit | - | - | - | - | 490 | ||||||||||||||
| Securities available for sale, at fair value | 50,212 | 54,148 | 55,366 | 55,551 | 54,462 | ||||||||||||||
| Loans held for sale, at fair value | 74,277 | 93,176 | 119,112 | 87,805 | 61,673 | ||||||||||||||
| Loans: | |||||||||||||||||||
| 1-4 family residential | 263,992 | 239,190 | 235,648 | 235,955 | 246,236 | ||||||||||||||
| Home equity | 50,555 | 49,073 | 48,166 | 48,097 | 43,493 | ||||||||||||||
| Commercial real estate | 167,691 | 146,930 | 143,893 | 141,862 | 134,750 | ||||||||||||||
| Construction | 29,140 | 29,975 | 31,050 | 32,064 | 35,181 | ||||||||||||||
| Total real estate loans | 511,378 | 465,168 | 458,757 | 457,978 | 459,660 | ||||||||||||||
| Commercial and industrial | 25,826 | 23,869 | 20,259 | 20,388 | 22,940 | ||||||||||||||
| Consumer | 9,194 | 8,724 | 10,289 | 11,696 | 13,435 | ||||||||||||||
| Total loans | 546,398 | 497,761 | 489,305 | 490,062 | 496,035 | ||||||||||||||
| Allowance for loan losses | (6,523 | ) | (6,563 | ) | (6,784 | ) | (6,597 | ) | (6,059 | ) | |||||||||
| Net deferred loan costs and fees, and purchase premiums | 785 | 785 | 1,123 | 1,083 | 962 | ||||||||||||||
| Loans, net | 540,660 | 491,983 | 483,644 | 484,548 | 490,938 | ||||||||||||||
| Federal Home Loan Bank of Boston stock, at cost | 2,855 | 3,576 | 3,576 | 3,797 | 4,072 | ||||||||||||||
| Accrued interest receivable | 1,523 | 1,501 | 1,562 | 1,654 | 1,760 | ||||||||||||||
| Mortgage servicing rights, net | 15,375 | 14,744 | 12,377 | 10,944 | 8,094 | ||||||||||||||
| Premises and equipment, net | 5,115 | 4,709 | 4,781 | 5,133 | 5,313 | ||||||||||||||
| Bank-owned life insurance | 8,703 | 8,662 | 8,622 | 8,577 | 8,532 | ||||||||||||||
| Foreclosed real estate, net | - | 132 | 132 | 132 | 132 | ||||||||||||||
| Other assets | 10,546 | 10,607 | 18,126 | 15,736 | 12,572 | ||||||||||||||
| Total assets | $ | 744,142 | $ | 738,188 | $ | 721,072 | $ | 722,968 | $ | 724,041 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Non-interest bearing | $ | 124,683 | $ | 118,623 | $ | 96,731 | $ | 93,352 | $ | 89,014 | |||||||||
| Savings accounts | 190,584 | 192,712 | 185,481 | 175,316 | 165,234 | ||||||||||||||
| NOW accounts | 51,059 | 62,772 | 53,530 | 47,032 | 48,014 | ||||||||||||||
| Money market accounts | 73,967 | 78,236 | 77,393 | 74,874 | 75,827 | ||||||||||||||
| Term certificates | 74,631 | 75,690 | 83,444 | 94,438 | 104,905 | ||||||||||||||
| Interest bearing brokered | 57,059 | 32,225 | 31,728 | 37,273 | 55,972 | ||||||||||||||
| Total deposits | 571,983 | 560,258 | 528,307 | 522,285 | 538,966 | ||||||||||||||
| Federal Reserve Bank advances | - | - | 11,431 | 15,318 | 15,010 | ||||||||||||||
| Federal Home Loan Bank of Boston advances | 50,016 | 60,024 | 61,895 | 66,903 | 71,944 | ||||||||||||||
| Mortgagors' escrow accounts | 1,783 | 1,924 | 2,338 | 1,959 | 1,824 | ||||||||||||||
| Post-employment benefit obligations | 2,226 | 2,235 | 2,382 | 2,289 | 2,319 | ||||||||||||||
| Other liabilities | 17,424 | 12,888 | 14,900 | 19,276 | 9,449 | ||||||||||||||
| Total liabilities | 643,432 | 637,329 | 621,253 | 628,030 | 639,512 | ||||||||||||||
| Stockholders' Equity: | |||||||||||||||||||
| Common stock | 52 | 53 | 54 | 55 | 55 | ||||||||||||||
| Additional paid-in capital | 46,740 | 48,613 | 50,937 | 51,201 | 51,013 | ||||||||||||||
| Retained earnings | 57,378 | 55,801 | 51,689 | 46,415 | 36,130 | ||||||||||||||
| ESOP-Unearned compensation | (3,662 | ) | (3,709 | ) | (3,756 | ) | (3,803 | ) | (3,850 | ) | |||||||||
| Accumulated other comprehensive income, net of tax | 202 | 101 | 895 | 1,070 | 1,181 | ||||||||||||||
| Total stockholders' equity | 100,710 | 100,859 | 99,819 | 94,938 | 84,529 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 744,142 | $ | 738,188 | $ | 721,072 | $ | 722,968 | $ | 724,041 | |||||||||
Randolph Bancorp, Inc.
Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
| Three Months Ended | % Change | |||||||||||||||||
| June 30, | March 31, | June 30, | Jun 2021 vs. | Jun 2021 vs. | ||||||||||||||
| 2021 | 2021 | 2020 | Mar 2021 | Jun 2020 | ||||||||||||||
| Interest and dividend income: | ||||||||||||||||||
| Loans | $ | 5,505 | $ | 5,508 | $ | 5,723 | (0.1 | )% | (3.8 | )% | ||||||||
| Other interest and dividend income | 237 | 253 | 336 | (6.3 | )% | (29.5 | )% | |||||||||||
| Total interest and dividend income | 5,742 | 5,761 | 6,059 | (0.3 | )% | (5.2 | )% | |||||||||||
| Interest expense | 543 | 670 | 1,326 | (19.0 | )% | (59.0 | )% | |||||||||||
| Net interest income | 5,199 | 5,091 | 4,733 | 2.1 | % | 9.8 | % | |||||||||||
| Provision (credit) for loan losses | (27 | ) | (213 | ) | 1,068 | (87.3 | )% | (102.5 | )% | |||||||||
| Net interest income after provision (credit) for loan losses | 5,226 | 5,304 | 3,665 | (1.5 | )% | 42.6 | % | |||||||||||
| Non-interest income: | ||||||||||||||||||
| Customer service fees | 419 | 367 | 266 | 14.2 | % | 57.5 | % | |||||||||||
| Gain on loan origination and sale activities, net | 5,740 | 10,993 | 14,370 | (47.8 | )% | (60.1 | )% | |||||||||||
| Mortgage servicing fees, net | 381 | 779 | (1,354 | ) | (51.1 | )% | (128.1 | )% | ||||||||||
| Other | 276 | 284 | 217 | (2.8 | )% | 27.2 | % | |||||||||||
| Total non-interest income | 6,816 | 12,423 | 13,499 | (45.1 | )% | (49.5 | )% | |||||||||||
| Non-interest expenses: | ||||||||||||||||||
| Salaries and employee benefits | 7,310 | 8,437 | 8,402 | (13.4 | )% | (13.0 | )% | |||||||||||
| Occupancy and equipment | 621 | 744 | 838 | (16.5 | )% | (25.9 | )% | |||||||||||
| Professional fees | 323 | 561 | 230 | (42.4 | )% | 40.4 | % | |||||||||||
| Marketing | 200 | 170 | 152 | 17.6 | % | 31.6 | % | |||||||||||
| FDIC insurance | 54 | 54 | 39 | 0.0 | % | 38.5 | % | |||||||||||
| Other non-interest expenses | 2,119 | 1,985 | 1,718 | 6.8 | % | 23.3 | % | |||||||||||
| Total non-interest expenses | 10,627 | 11,951 | 11,379 | (11.1 | )% | (6.6 | )% | |||||||||||
| Income before income taxes | 1,415 | 5,776 | 5,785 | (75.5 | )% | (75.5 | )% | |||||||||||
| Income tax expense (benefit) | (162 | ) | 1,664 | 594 | (109.7 | )% | (127.3 | )% | ||||||||||
| Net income | $ | 1,577 | $ | 4,112 | $ | 5,191 | (61.6 | )% | (69.6 | )% | ||||||||
| Net income per share: | ||||||||||||||||||
| Basic | $ | 0.32 | $ | 0.81 | $ | 1.02 | ||||||||||||
| Diluted | $ | 0.31 | $ | 0.78 | $ | 1.02 | ||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 4,921,182 | 5,056,165 | 5,092,490 | |||||||||||||||
| Diluted | 5,135,582 | 5,254,907 | 5,092,490 | |||||||||||||||
Randolph Bancorp, Inc.
Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
| Year to Date | % Change | |||||||||
| June 30, | June 30, | Jun 2021 vs. | ||||||||
| 2021 | 2020 | Jun 2020 | ||||||||
| Interest and dividend income: | ||||||||||
| Loans | $ | 11,013 | $ | 11,343 | (2.9 | )% | ||||
| Other interest and dividend income | 490 | 769 | (36.3 | )% | ||||||
| Total interest and dividend income | 11,503 | 12,112 | (5.0 | )% | ||||||
| Interest expense | 1,213 | 2,955 | (59.0 | )% | ||||||
| Net interest income | 10,290 | 9,157 | 12.4 | % | ||||||
| Provision (credit) for loan losses | (240 | ) | 1,792 | (113.4 | )% | |||||
| Net interest income after provision (credit) for loan losses | 10,530 | 7,365 | 43.0 | % | ||||||
| Non-interest income: | ||||||||||
| Customer service fees | 786 | 573 | 37.2 | % | ||||||
| Gain on loan origination and sale activities, net | 16,733 | 21,514 | (22.2 | )% | ||||||
| Mortgage servicing fees, net | 1,160 | (2,608 | ) | (144.5 | )% | |||||
| Other | 560 | 472 | 18.6 | % | ||||||
| Total non-interest income | 19,239 | 19,951 | (3.6 | )% | ||||||
| Non-interest expenses: | ||||||||||
| Salaries and employee benefits | 15,747 | 16,527 | (4.7 | )% | ||||||
| Occupancy and equipment | 1,365 | 1,537 | (11.2 | )% | ||||||
| Professional fees | 884 | 635 | 39.2 | % | ||||||
| Marketing | 370 | 304 | 21.7 | % | ||||||
| FDIC insurance | 108 | 96 | 12.5 | % | ||||||
| Other non-interest expenses | 4,104 | 3,239 | 26.7 | % | ||||||
| Total non-interest expenses | 22,578 | 22,338 | 1.1 | % | ||||||
| Income before income taxes | 7,191 | 4,978 | 44.5 | % | ||||||
| Income tax expense | 1,502 | 605 | 148.3 | % | ||||||
| Net income | $ | 5,689 | $ | 4,373 | 30.1 | % | ||||
| Net income per share: | ||||||||||
| Basic | $ | 1.14 | $ | 0.86 | ||||||
| Diluted | $ | 1.10 | $ | 0.86 | ||||||
| Weighted average shares outstanding: | ||||||||||
| Basic | 4,988,283 | 5,107,700 | ||||||||
| Diluted | 5,193,643 | 5,107,700 | ||||||||
Randolph Bancorp, Inc.
Consolidated Statements of Operations Trend
(Dollars in thousands except per share amounts)
(Unaudited)
| Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
| Interest and dividend income: | |||||||||||||||||||
| Loans | $ | 5,505 | $ | 5,508 | $ | 5,532 | $ | 5,337 | $ | 5,723 | |||||||||
| Other interest and dividend income | 237 | 253 | 296 | 311 | 336 | ||||||||||||||
| Total interest and dividend income | 5,742 | 5,761 | 5,828 | 5,648 | 6,059 | ||||||||||||||
| Interest expense | 543 | 670 | 788 | 979 | 1,326 | ||||||||||||||
| Net interest income | 5,199 | 5,091 | 5,040 | 4,669 | 4,733 | ||||||||||||||
| Provision (credit) for loan losses | (27 | ) | (213 | ) | 215 | 546 | 1,068 | ||||||||||||
| Net interest income after provision (credit) for loan losses | 5,226 | 5,304 | 4,825 | 4,123 | 3,665 | ||||||||||||||
| Non-interest income: | |||||||||||||||||||
| Customer service fees | 419 | 367 | 381 | 330 | 266 | ||||||||||||||
| Gain on loan origination and sale activities, net | 5,740 | 10,993 | 14,620 | 18,102 | 14,370 | ||||||||||||||
| Mortgage servicing fees, net | 381 | 779 | 275 | 1,180 | (1,354 | ) | |||||||||||||
| Other | 276 | 284 | 311 | 262 | 217 | ||||||||||||||
| Total non-interest income | 6,816 | 12,423 | 15,587 | 19,874 | 13,499 | ||||||||||||||
| Non-interest expenses: | |||||||||||||||||||
| Salaries and employee benefits | 7,310 | 8,437 | 8,722 | 7,911 | 8,402 | ||||||||||||||
| Occupancy and equipment | 621 | 744 | 1,150 | 859 | 838 | ||||||||||||||
| Professional fees | 323 | 561 | 389 | 253 | 230 | ||||||||||||||
| Marketing | 200 | 170 | 231 | 154 | 152 | ||||||||||||||
| FDIC insurance | 54 | 54 | 51 | 41 | 39 | ||||||||||||||
| Other non-interest expenses | 2,119 | 1,985 | 2,384 | 1,833 | 1,718 | ||||||||||||||
| Total non-interest expenses | 10,627 | 11,951 | 12,927 | 11,051 | 11,379 | ||||||||||||||
| Income before income taxes | 1,415 | 5,776 | 7,485 | 12,946 | 5,785 | ||||||||||||||
| Income tax expense (benefit) | (162 | ) | 1,664 | 2,211 | 2,661 | 594 | |||||||||||||
| Net income | $ | 1,577 | $ | 4,112 | $ | 5,274 | $ | 10,285 | $ | 5,191 | |||||||||
| Net income per share: | |||||||||||||||||||
| Basic | $ | 0.32 | $ | 0.81 | $ | 1.03 | $ | 2.01 | $ | 1.02 | |||||||||
| Diluted | $ | 0.31 | $ | 0.78 | $ | 1.01 | $ | 2.01 | $ | 1.02 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||||
| Basic | 4,921,182 | 5,056,165 | 5,135,069 | 5,120,367 | 5,092,490 | ||||||||||||||
| Diluted | 5,135,582 | 5,254,907 | 5,244,414 | 5,120,367 | 5,092,490 | ||||||||||||||
Randolph Bancorp, Inc.
Average Balances/Yields
(Dollars in thousands)
(Unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||||
| Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||||||
| (Dollars in thousands) | Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | ||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||
| Loans (1) | $ | 592,750 | $ | 5,505 | 3.71 | % | $ | 594,021 | $ | 5,508 | 3.71 | % | $ | 576,964 | $ | 5,723 | 3.97 | % | |||||||||||
| Investment securities(2) (3) | 55,376 | 229 | 1.65 | % | 57,818 | 247 | 1.71 | % | 58,119 | 332 | 2.28 | % | |||||||||||||||||
| Interest-earning deposits | 43,888 | 8 | 0.07 | % | 35,492 | 7 | 0.08 | % | 22,918 | 5 | 0.09 | % | |||||||||||||||||
| Total interest-earning assets | 692,014 | 5,742 | 3.32 | % | 687,331 | 5,762 | 3.35 | % | 658,001 | 6,060 | 3.68 | % | |||||||||||||||||
| Noninterest-earning assets | 40,257 | 42,045 | 40,156 | ||||||||||||||||||||||||||
| Total assets | $ | 732,271 | $ | 729,376 | $ | 698,157 | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||
| Savings accounts | 192,434 | 89 | 0.18 | % | 190,313 | 98 | 0.21 | % | 158,427 | 233 | 0.59 | % | |||||||||||||||||
| NOW accounts | 69,730 | 38 | 0.22 | % | 69,511 | 48 | 0.28 | % | 46,593 | 50 | 0.43 | % | |||||||||||||||||
| Money market accounts | 72,469 | 43 | 0.24 | % | 75,994 | 54 | 0.28 | % | 71,396 | 122 | 0.68 | % | |||||||||||||||||
| Term certificates | 104,604 | 176 | 0.67 | % | 96,978 | 238 | 0.98 | % | 159,224 | 677 | 1.70 | % | |||||||||||||||||
| Total interest-bearing deposits | 439,237 | 346 | 0.32 | % | 432,796 | 438 | 0.40 | % | 435,640 | 1,082 | 0.99 | % | |||||||||||||||||
| FHLBB and FRB advances | 51,502 | 198 | 1.54 | % | 70,857 | 232 | 1.31 | % | 79,133 | 244 | 1.23 | % | |||||||||||||||||
| Total interest-bearing liabilities | 490,739 | 544 | 0.44 | % | 503,653 | 670 | 0.53 | % | 514,773 | 1,326 | 1.03 | % | |||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 124,656 | 106,929 | 77,947 | ||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 13,606 | 15,375 | 22,893 | ||||||||||||||||||||||||||
| Total liabilities | 629,001 | 625,957 | 615,613 | ||||||||||||||||||||||||||
| Total stockholders' equity | 103,270 | 103,419 | 82,544 | ||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 732,271 | $ | 729,376 | $ | 698,157 | |||||||||||||||||||||||
| Net interest income | $ | 5,198 | $ | 5,092 | $ | 4,734 | |||||||||||||||||||||||
| Interest rate spread(4) | 2.88 | % | 2.82 | % | 2.65 | % | |||||||||||||||||||||||
| Net interest-earning assets(5) | $ | 201,275 | $ | 183,678 | $ | 143,228 | |||||||||||||||||||||||
| Net interest margin(6) | 3.00 | % | 2.96 | % | 2.88 | % | |||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 141.01 | % | 136.47 | % | 127.82 | % | |||||||||||||||||||||||
(1) Includes nonaccruing loan balances and interest received on such loans.
(2) Includes carrying value of securities classified as available-for-sale and FHLBB stock.
(3) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $1,000, $1,000 and $1,000 for the three months ended June, 2021, March 31, 2021 and June 30, 2020, respectively.
(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
Randolph Bancorp, Inc.
Average Balances/Yields
(Dollars in thousands)
(Unaudited)
| Average Balance and Yields | |||||||||||||||||||||
| Year to Date | |||||||||||||||||||||
| June 30, 2021 | June 30, 2020 | ||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | ||||||||||||||||
| Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | ||||||||||||||||
| (Dollars in thousands) | Balance | Paid | Rate | Balance | Paid | Rate | |||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Loans (1) | $ | 593,382 | $ | 11,013 | 3.71 | % | $ | 554,053 | $ | 11,343 | 4.09 | % | |||||||||
| Investment securities(2) (3) | 56,590 | 476 | 1.68 | % | 58,459 | 711 | 2.43 | % | |||||||||||||
| Interest-earning deposits | 39,713 | 15 | 0.08 | % | 20,688 | 61 | 0.59 | % | |||||||||||||
| Total interest-earning assets | 689,685 | 11,504 | 3.34 | % | 633,200 | 12,115 | 3.83 | % | |||||||||||||
| Noninterest-earning assets | 41,146 | 35,965 | |||||||||||||||||||
| Total assets | $ | 730,831 | $ | 669,165 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Savings accounts | 191,379 | 187 | 0.20 | % | 146,635 | 516 | 0.70 | % | |||||||||||||
| NOW accounts | 69,621 | 86 | 0.25 | % | 42,821 | 101 | 0.47 | % | |||||||||||||
| Money market accounts | 74,222 | 97 | 0.26 | % | 74,895 | 321 | 0.86 | % | |||||||||||||
| Term certificates | 100,812 | 414 | 0.82 | % | 173,939 | 1,570 | 1.81 | % | |||||||||||||
| Total interest-bearing deposits | 436,034 | 784 | 0.36 | % | 438,290 | 2,508 | 1.14 | % | |||||||||||||
| FHLBB and FRB advances | 61,126 | 430 | 1.41 | % | 63,118 | 447 | 1.42 | % | |||||||||||||
| Total interest-bearing liabilities | 497,160 | 1,214 | 0.49 | % | 501,408 | 2,955 | 1.18 | % | |||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||
| Noninterest-bearing deposits | 115,841 | 70,333 | |||||||||||||||||||
| Other noninterest-bearing liabilities | 14,486 | 16,221 | |||||||||||||||||||
| Total liabilities | 627,487 | 587,962 | |||||||||||||||||||
| Total stockholders' equity | 103,344 | 81,204 | |||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 730,831 | $ | 669,166 | |||||||||||||||||
| Net interest income | $ | 10,290 | $ | 9,160 | |||||||||||||||||
| Interest rate spread(4) | 2.85 | % | 2.65 | % | |||||||||||||||||
| Net interest-earning assets(5) | $ | 192,525 | $ | 131,792 | |||||||||||||||||
| Net interest margin(6) | 2.98 | % | 2.89 | % | |||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 138.72 | % | 126.28 | % | |||||||||||||||||
(1) Includes nonaccruing loan balances and interest received on such loans.
(2) Includes carrying value of securities classified as available-for-sale and FHLBB stock.
(3) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $2,000 and $3,000 for the six months ended June 30, 2021 and 2020, respectively.
(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
Randolph Bancorp, Inc.
Average Balances Trend
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||
| Interest-earning assets: | ||||||||||||||
| Total loans | $ | 592,750 | $ | 594,021 | $ | 580,002 | $ | 559,370 | $ | 576,964 | ||||
| Investment securities | 55,376 | 57,818 | 58,329 | 57,211 | 58,119 | |||||||||
| Interest-earning deposits | 43,888 | 35,492 | 30,573 | 48,949 | 22,918 | |||||||||
| Total interest-earning assets | 692,014 | 687,331 | 668,904 | 665,530 | 658,001 | |||||||||
| Non-interest earning assets | 40,257 | 42,045 | 45,015 | 41,037 | 40,156 | |||||||||
| Total assets | $ | 732,271 | $ | 729,376 | $ | 713,919 | $ | 706,567 | $ | 698,157 | ||||
| Interest-bearing liabilities: | ||||||||||||||
| Savings accounts | $ | 192,434 | $ | 190,313 | $ | 181,653 | $ | 170,762 | $ | 158,427 | ||||
| NOW accounts | 69,730 | 69,511 | 59,005 | 57,646 | 46,593 | |||||||||
| Money market accounts | 72,469 | 75,994 | 75,106 | 72,369 | 71,396 | |||||||||
| Term certificates | 104,604 | 96,978 | 112,260 | 131,053 | 159,224 | |||||||||
| Total interest-bearing deposits | 439,237 | 432,796 | 428,024 | 431,830 | 435,640 | |||||||||
| FHLBB and FRB advances | 51,502 | 70,857 | 77,584 | 82,639 | 79,133 | |||||||||
| Total interest-bearing liabilities | 490,739 | 503,653 | 505,608 | 514,469 | 514,773 | |||||||||
| Noninterest-bearing liabilities: | ||||||||||||||
| Noninterest-bearing deposits | 124,656 | 106,929 | 94,540 | 88,394 | 77,947 | |||||||||
| Other noninterest-bearing liabilities | 13,606 | 15,375 | 13,539 | 12,724 | 22,893 | |||||||||
| Total liabilities | 629,001 | 625,957 | 613,687 | 615,587 | 615,613 | |||||||||
| Total stockholders' equity | 103,270 | 103,419 | 100,232 | 90,980 | 82,544 | |||||||||
| Total liabilities and stockholders' equity | $ | 732,271 | $ | 729,376 | $ | 713,919 | $ | 706,567 | $ | 698,157 | ||||
Randolph Bancorp, Inc.
Average Balances Trend
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | ||||||||||
| Interest-earning assets: | ||||||||||||||
| Total loans | 3.71 | % | 3.71 | % | 3.82 | % | 3.82 | % | 3.97 | % | ||||
| Investment securities | 1.65 | % | 1.71 | % | 1.99 | % | 2.13 | % | 2.28 | % | ||||
| Interest-earning deposits | 0.07 | % | 0.08 | % | 0.10 | % | 0.06 | % | 0.09 | % | ||||
| Total interest-earning assets | 3.32 | % | 3.35 | % | 3.49 | % | 3.40 | % | 3.68 | % | ||||
| Interest-bearing liabilities: | ||||||||||||||
| Savings accounts | 0.18 | % | 0.21 | % | 0.31 | % | 0.40 | % | 0.59 | % | ||||
| NOW accounts | 0.22 | % | 0.28 | % | 0.29 | % | 0.28 | % | 0.43 | % | ||||
| Money market accounts | 0.24 | % | 0.28 | % | 0.33 | % | 0.41 | % | 0.68 | % | ||||
| Term certificates | 0.67 | % | 0.98 | % | 1.04 | % | 1.35 | % | 1.70 | % | ||||
| Total interest-bearing deposits | 0.32 | % | 0.40 | % | 0.50 | % | 0.68 | % | 0.99 | % | ||||
| FHLBB and FRB advances | 1.54 | % | 1.31 | % | 1.27 | % | 1.21 | % | 1.23 | % | ||||
| Total interest-bearing liabilities | 0.44 | % | 0.53 | % | 0.62 | % | 0.76 | % | 1.03 | % | ||||
| Interest rate spread | 2.88 | % | 2.82 | % | 2.87 | % | 2.64 | % | 2.65 | % | ||||
| Net interest rate margin | 3.00 | % | 2.96 | % | 3.02 | % | 2.81 | % | 2.88 | % | ||||
| Ratio of interest-earning assets to interest-bearing liabilities | 141.01 | % | 136.47 | % | 132.30 | % | 129.36 | % | 127.82 | % | ||||
Randolph Bancorp, Inc.
Rate/Volume Analysis
(Dollars in thousands)
(Unaudited)
| Three Months Ended | |||||||||||
| June 30, 2021 vs. March 31, 2021 | |||||||||||
| Increase (Decrease) | Total | ||||||||||
| Due to Changes in | Increase | ||||||||||
| Volume | Rate | (Decrease) | |||||||||
| Interest-earning assets: | |||||||||||
| Loans | $ | (3 | ) | $ | - | $ | (3 | ) | |||
| Investment securities | (10 | ) | (8 | ) | (18 | ) | |||||
| Interest-earning deposits | 2 | - | 2 | ||||||||
| Total interest-earning assets | (11 | ) | (8 | ) | (19 | ) | |||||
| Interest-bearing liabilities: | |||||||||||
| Savings accounts | 1 | (10 | ) | (9 | ) | ||||||
| NOW accounts | - | (10 | ) | (10 | ) | ||||||
| Money market accounts | (3 | ) | (8 | ) | (11 | ) | |||||
| Term certificates | 18 | (80 | ) | (62 | ) | ||||||
| Total interest-bearing deposits | 16 | (108 | ) | (92 | ) | ||||||
| FHLBB and FRB advances | (70 | ) | 35 | (35 | ) | ||||||
| Total interest-bearing liabilities | (54 | ) | (73 | ) | (127 | ) | |||||
| Change in net interest income | $ | 43 | $ | 65 | $ | 108 | |||||
| Three Months Ended | |||||||||||
| June 30, 2021 vs. 2020 | |||||||||||
| Increase (Decrease) | Total | ||||||||||
| Due to Changes in | Increase | ||||||||||
| Volume | Rate | (Decrease) | |||||||||
| Interest-earning assets: | |||||||||||
| Loans | $ | 157 | $ | (375 | ) | $ | (218 | ) | |||
| Investment securities | (15 | ) | (88 | ) | (103 | ) | |||||
| Interest-earning deposits | 4 | - | 4 | ||||||||
| Total interest-earning assets | 146 | (463 | ) | (317 | ) | ||||||
| Interest-bearing liabilities: | |||||||||||
| Savings accounts | 43 | (187 | ) | (144 | ) | ||||||
| NOW accounts | 19 | (31 | ) | (12 | ) | ||||||
| Money market accounts | 2 | (81 | ) | (79 | ) | ||||||
| Term certificates | (181 | ) | (320 | ) | (501 | ) | |||||
| Total interest-bearing deposits | (117 | ) | (619 | ) | (736 | ) | |||||
| FHLBB and FRB advances | (98 | ) | 51 | (47 | ) | ||||||
| Total interest-bearing liabilities | (215 | ) | (568 | ) | (783 | ) | |||||
| Change in net interest income | $ | 361 | $ | 105 | $ | 466 | |||||
Randolph Bancorp, Inc.
Rate/Volume Analysis
(Dollars in thousands)
(Unaudited)
| Year to Date | |||||||||||
| June 30, 2021 vs. 2020 | |||||||||||
| Increase (Decrease) | Total | ||||||||||
| Due to Changes in | Increase | ||||||||||
| Volume | Rate | (Decrease) | |||||||||
| Interest-earning assets: | |||||||||||
| Loans | $ | 313 | $ | (643 | ) | $ | (330 | ) | |||
| Investment securities | (22 | ) | (213 | ) | (235 | ) | |||||
| Interest-earning deposits | 3 | (47 | ) | (44 | ) | ||||||
| Total interest-earning assets | 294 | (903 | ) | (609 | ) | ||||||
| Interest-bearing liabilities: | |||||||||||
| Savings accounts | 11 | (340 | ) | (329 | ) | ||||||
| NOW accounts | 18 | (33 | ) | (15 | ) | ||||||
| Money market accounts | (3 | ) | (221 | ) | (224 | ) | |||||
| Term certificates | (502 | ) | (654 | ) | (1,156 | ) | |||||
| Total interest-bearing deposits | (476 | ) | (1,248 | ) | (1,724 | ) | |||||
| FHLBB and FRB advances | (14 | ) | (4 | ) | (18 | ) | |||||
| Total interest-bearing liabilities | (490 | ) | (1,252 | ) | (1,742 | ) | |||||
| Change in net interest income | $ | 784 | $ | 349 | $ | 1,133 | |||||
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Three Months Ended June 30, 2021 | |||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | |||||||||
| Net interest income | $ | 4,535 | $ | 664 | $ | 5,199 | |||||
| Provision (credit) for loan losses | (27 | ) | - | (27 | ) | ||||||
| Net interest income after provision (credit) for loan losses | 4,562 | 664 | 5,226 | ||||||||
| Non-interest income: | |||||||||||
| Customer service fees | 393 | 26 | 419 | ||||||||
| Gain on loan origination and sale activities, net (1) | - | 6,558 | 6,558 | ||||||||
| Mortgage servicing fees, net | (94 | ) | 475 | 381 | |||||||
| Other | 158 | 118 | 276 | ||||||||
| Total non-interest income | 457 | 7,177 | 7,634 | ||||||||
| Non-interest expenses: | |||||||||||
| Salaries and employee benefits | 1,746 | 5,564 | 7,310 | ||||||||
| Occupancy and equipment | 407 | 214 | 621 | ||||||||
| Other non-interest expenses | 1,265 | 1,431 | 2,696 | ||||||||
| Total non-interest expenses | 3,418 | 7,209 | 10,627 | ||||||||
| Income before income taxes and elimination of inter-segment profit | $ | 1,601 | $ | 632 | 2,233 | ||||||
| Elimination of inter-segment profit | (818 | ) | |||||||||
| Income before income taxes | 1,415 | ||||||||||
| Income tax expense (benefit) | (162 | ) | |||||||||
| Net income | $ | 1,577 | |||||||||
_____________________________
(1) Before elimination of inter-segment profit.
The information above was derived from the internal management reporting system used to measure performance of the segments.
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Three Months Ended March 31, 2021 | |||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | |||||||||
| Net interest income | $ | 4,201 | $ | 890 | $ | 5,091 | |||||
| Provision (credit) for loan losses | (213 | ) | - | (213 | ) | ||||||
| Net interest income after provision (credit) for loan losses | 4,414 | 890 | 5,304 | ||||||||
| Non-interest income: | |||||||||||
| Customer service fees | 340 | 27 | 367 | ||||||||
| Gain on loan origination and sale activities, net (1) | - | 11,674 | 11,674 | ||||||||
| Mortgage servicing fees, net | (94 | ) | 873 | 779 | |||||||
| Other | 151 | 133 | 284 | ||||||||
| Total non-interest income | 397 | 12,707 | 13,104 | ||||||||
| Non-interest expenses: | |||||||||||
| Salaries and employee benefits | 1,802 | 6,635 | 8,437 | ||||||||
| Occupancy and equipment | 443 | 301 | 744 | ||||||||
| Other non-interest expenses | 1,087 | 1,683 | 2,770 | ||||||||
| Total non-interest expenses | 3,332 | 8,619 | 11,951 | ||||||||
| Income before income taxes and elimination of inter-segment profit | $ | 1,479 | $ | 4,978 | 6,457 | ||||||
| Elimination of inter-segment profit | (681 | ) | |||||||||
| Income before income taxes | 5,776 | ||||||||||
| Income tax expense | 1,664 | ||||||||||
| Net income | $ | 4,112 | |||||||||
(1) Before elimination of inter-segment profit.
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Three Months Ended June 30, 2020 | |||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | |||||||||
| Net interest income | $ | 3,944 | $ | 789 | $ | 4,733 | |||||
| Provision for loan losses | 1,068 | - | 1,068 | ||||||||
| Net interest income after provision for loan losses | 2,876 | 789 | 3,665 | ||||||||
| Non-interest income: | |||||||||||
| Customer service fees | 245 | 21 | 266 | ||||||||
| Gain on loan origination and sale activities, net (1) | - | 14,736 | 14,736 | ||||||||
| Mortgage servicing fees, net | (95 | ) | (1,258 | ) | (1,353 | ) | |||||
| Other | 85 | 132 | 217 | ||||||||
| Total non-interest income | 235 | 13,631 | 13,866 | ||||||||
| Non-interest expenses: | |||||||||||
| Salaries and employee benefits | 1,925 | 6,476 | 8,401 | ||||||||
| Occupancy and equipment | 465 | 374 | 839 | ||||||||
| Other non-interest expenses | 1,057 | 1,082 | 2,139 | ||||||||
| Total non-interest expenses | 3,447 | 7,932 | 11,379 | ||||||||
| Income (loss) before income taxes and elimination of inter-segment profit | $ | (336 | ) | $ | 6,488 | 6,152 | |||||
| Elimination of inter-segment profit | (367 | ) | |||||||||
| Income before income taxes | 5,785 | ||||||||||
| Income tax expense | 594 | ||||||||||
| Net income | $ | 5,191 | |||||||||
(1) Before elimination of inter-segment profit.
The information above was derived from the internal management reporting system used to measure performance of the segments.
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Six Months Ended June 30, 2021 | |||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | |||||||||
| Net interest income | $ | 8,736 | $ | 1,554 | $ | 10,290 | |||||
| Provision (credit) for loan losses | (240 | ) | - | (240 | ) | ||||||
| Net interest income after provision (credit) for loan losses | 8,976 | 1,554 | 10,530 | ||||||||
| Non-interest income: | |||||||||||
| Customer service fees | 733 | 53 | 786 | ||||||||
| Gain on loan origination and sale activities, net (1) | - | 18,232 | 18,232 | ||||||||
| Mortgage servicing fees, net | (189 | ) | 1,349 | 1,160 | |||||||
| Other | 309 | 251 | 560 | ||||||||
| Total non-interest income | 853 | 19,885 | 20,738 | ||||||||
| Non-interest expenses: | |||||||||||
| Salaries and employee benefits | 3,548 | 12,199 | 15,747 | ||||||||
| Occupancy and equipment | 851 | 514 | 1,365 | ||||||||
| Other non-interest expenses | 2,349 | 3,117 | 5,466 | ||||||||
| Total non-interest expenses | 6,748 | 15,830 | 22,578 | ||||||||
| Income before income taxes and elimination of inter-segment profit | $ | 3,081 | $ | 5,609 | 8,690 | ||||||
| Elimination of inter-segment profit | (1,499 | ) | |||||||||
| Income before income taxes | 7,191 | ||||||||||
| Income tax expense | 1,502 | ||||||||||
| Net income | $ | 5,689 | |||||||||
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Six Months Ended June 30, 2020 | |||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | |||||||||
| Net interest income | $ | 7,937 | $ | 1,220 | $ | 9,157 | |||||
| Provision for loan losses | 1,792 | - | 1,792 | ||||||||
| Net interest income after provision for loan losses | 6,145 | 1,220 | 7,365 | ||||||||
| Non-interest income: | |||||||||||
| Customer service fees | 518 | 55 | 573 | ||||||||
| Gain on loan origination and sale activities, net (1) | - | 22,209 | 22,209 | ||||||||
| Mortgage servicing fees, net | (182 | ) | (2,426 | ) | (2,608 | ) | |||||
| Other | 225 | 247 | 472 | ||||||||
| Total non-interest income | 561 | 20,085 | 20,646 | ||||||||
| Non-interest expenses: | |||||||||||
| Salaries and employee benefits | 5,023 | 11,504 | 16,527 | ||||||||
| Occupancy and equipment | 869 | 668 | 1,537 | ||||||||
| Other non-interest expenses | 2,203 | 2,071 | 4,274 | ||||||||
| Total non-interest expenses | 8,095 | 14,243 | 22,338 | ||||||||
| Income (loss) before income taxes and elimination of inter-segment profit | $ | (1,389 | ) | $ | 7,062 | 5,673 | |||||
| Elimination of inter-segment profit | (695 | ) | |||||||||
| Income before income taxes | 4,978 | ||||||||||
| Income tax expense | 605 | ||||||||||
| Net income | $ | 4,373 | |||||||||
Randolph Bancorp, Inc.
Reconciliation of GAAP to Non-GAAP Net Income
(in thousands, except per share amounts)
Unaudited
| Quarter Ended | ||||||||||||||||||
| June 30, 2021 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision (credit) for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 1,415 | $ | (162 | ) | $ | 1,577 | $ | 0.31 | |||||||||
| Loss on disposal of fixed assets | Non-interest income | 29 | 8 | 21 | - | |||||||||||||
| Accrued severance expenses | Non-interest expense | 145 | 41 | 104 | 0.02 | |||||||||||||
| Other outsourcing expenses | Non-interest expense | 71 | 20 | 51 | 0.01 | |||||||||||||
| Non-GAAP basis | $ | 1,660 | $ | (93 | ) | $ | 1,753 | $ | 0.34 | |||||||||
| Quarter Ended | ||||||||||||||||||
| March 31, 2021 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 5,776 | $ | 1,664 | $ | 4,112 | $ | 0.78 | ||||||||||
| Accrued severance expenses | Non-interest expense | 109 | 31 | 78 | 0.01 | |||||||||||||
| Non-GAAP basis | $ | 5,885 | $ | 1,695 | $ | 4,190 | $ | 0.79 | ||||||||||
| Quarter Ended | ||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 7,485 | $ | 2,211 | $ | 5,274 | $ | 1.01 | ||||||||||
| Residential lending office closure | Non-interest expense | 294 | 63 | 231 | 0.04 | |||||||||||||
| COVID-19 related expenses | Non-interest expense | 69 | 15 | 54 | 0.01 | |||||||||||||
| Non-GAAP basis | $ | 7,848 | $ | 2,289 | $ | 5,559 | $ | 1.06 | ||||||||||
| Quarter Ended | ||||||||||||||||||
| September 30, 2020 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 12,946 | $ | 2,661 | $ | 10,285 | $ | 2.01 | ||||||||||
| COVID-19 related expenses | Non-interest expense | 22 | 4 | 18 | - | |||||||||||||
| Non-GAAP basis | $ | 12,968 | $ | 2,665 | $ | 10,303 | $ | 2.01 | ||||||||||
| Quarter Ended | ||||||||||||||||||
| June 30, 2020 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income (Loss) Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 5,785 | $ | 594 | $ | 5,191 | $ | 1.02 | ||||||||||
| COVID-19 related expenses | Non-interest expense | 189 | - | 189 | 0.04 | |||||||||||||
| Non-GAAP basis | $ | 5,974 | $ | 594 | $ | 5,380 | $ | 1.06 | ||||||||||
Randolph Bancorp, Inc.
Reconciliation of GAAP to Non-GAAP Net Income
(in thousands, except per share amounts)
(Unaudited)
| Year to Date | ||||||||||||||||||
| June 30, 2021 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 7,191 | $ | 1,502 | $ | 5,689 | $ | 1.10 | ||||||||||
| Loss on disposal of fixed assets | Non-interest income | 29 | 8 | 21 | - | |||||||||||||
| Accrued severance expenses | Non-interest expense | 254 | 72 | 182 | 0.04 | |||||||||||||
| Other outsourcing expenses | Non-interest expense | 71 | 20 | 51 | 0.01 | |||||||||||||
| Non-GAAP basis | $ | 7,545 | $ | 1,602 | $ | 5,943 | $ | 1.15 | ||||||||||
| Year to Date | ||||||||||||||||||
| June 30, 2020 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income (Loss) | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 4,978 | $ | 605 | $ | 4,373 | $ | 0.86 | ||||||||||
| Retirement salary and benefits compensation | Non-interest expense | 692 | - | 692 | 0.14 | |||||||||||||
| Accelerated vesting of stock-based compensation | Non-interest expense | 683 | - | 683 | 0.13 | |||||||||||||
| COVID-19 related expenses | Non-interest expense | 207 | - | 207 | 0.04 | |||||||||||||
| Non-GAAP basis | $ | 6,560 | $ | 605 | $ | 5,955 | $ | 1.17 | ||||||||||
Randolph Bancorp, Inc.
Selected Financial Highlights
(Unaudited)
| At or for the Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2021 | 2021 | 2020 | 2020 | 2020 | |||||||||||||||
| Return on average assets: (1, 5) | |||||||||||||||||||
| GAAP | 0.86 | % | 2.26 | % | 2.95 | % | 5.82 | % | 2.97 | % | |||||||||
| Non-GAAP (2) | 0.96 | % | 2.30 | % | 3.11 | % | 5.83 | % | 3.08 | % | |||||||||
| Return on average equity: (1, 6) | |||||||||||||||||||
| GAAP | 6.11 | % | 15.90 | % | 21.05 | % | 45.22 | % | 25.16 | % | |||||||||
| Non-GAAP (2) | 6.79 | % | 16.21 | % | 22.18 | % | 45.30 | % | 26.07 | % | |||||||||
| Net interest margin | 3.00 | % | 2.96 | % | 3.02 | % | 2.81 | % | 2.88 | % | |||||||||
| Non-interest income to total income: | |||||||||||||||||||
| GAAP | 56.73 | % | 70.93 | % | 75.57 | % | 80.98 | % | 74.04 | % | |||||||||
| Non-GAAP (2) | 56.83 | % | 70.93 | % | 75.57 | % | 80.98 | % | 74.04 | % | |||||||||
| Profit percentage (9) | |||||||||||||||||||
| GAAP | 11.55 | % | 31.76 | % | 37.33 | % | 54.97 | % | 37.59 | % | |||||||||
| Non-GAAP (2) | 13.56 | % | 32.39 | % | 39.09 | % | 55.06 | % | 38.62 | % | |||||||||
| Efficiency ratio: (7) | |||||||||||||||||||
| GAAP | 88.45 | % | 68.24 | % | 62.67 | % | 45.03 | % | 62.41 | % | |||||||||
| Non-GAAP (2) | 86.44 | % | 67.61 | % | 60.91 | % | 44.94 | % | 61.38 | % | |||||||||
| Tier 1 capital to average assets (3) | 13.72 | % | 13.81 | % | 13.85 | % | 13.28 | % | 11.93 | % | |||||||||
| Non-performing assets as a percentage of total assets (4) | 0.86 | % | 1.14 | % | 1.01 | % | 1.38 | % | 0.47 | % | |||||||||
| Allowance for loan losses as a percentage of total loans (4) | 1.19 | % | 1.32 | % | 1.39 | % | 1.35 | % | 1.22 | % | |||||||||
| Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4) | 1.22 | % | 1.36 | % | 1.41 | % | 1.39 | % | 1.26 | % | |||||||||
| Allowance for loan losses as a percentage of non-performing assets | 101.89 | % | 78.99 | % | 94.58 | % | 67.21 | % | 179.31 | % | |||||||||
| Allowance for loan losses as a percentage of non-performing loans | 101.89 | % | 77.75 | % | 92.87 | % | 66.31 | % | 186.60 | % | |||||||||
| Tangible book value per share (8) | $ | 19.16 | $ | 18.80 | $ | 18.16 | $ | 17.18 | $ | 15.43 | |||||||||
| Outstanding shares | 5,254,522 | 5,364,240 | 5,495,514 | 5,524,390 | 5,479,884 | ||||||||||||||
| (1) | Annualized for quarterly periods presented. |
| (2) | See page 16 – Reconciliation of GAAP to Non-GAAP Net Income. |
| (3) | Average assets calculated on a quarterly basis for all periods presented. |
| (4) | Total loans exclude loans held for sale but includes net deferred loan costs and fees. |
| (5) | This non-GAAP measure represents net income divided by average total assets. |
| (6) | This non-GAAP measure represents net income divided by average stockholders’ equity. |
| (7) | This non-GAAP measure represents total non-interest expenses divided by net interest income and non-interest income. |
| (8) | This non-GAAP measure represents total stockholders’ equity, minus intangible assets of $28,000, $31,000, $33,000, $36,000, and $38,000 at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020, respectively, divided by outstanding shares at period end. |
| (9) | This non-GAAP measure represents net interest income plus noninterest income less non-interest expense divided by net interest income plus non-interest income. |
Randolph Bancorp, Inc.
Selected Financial Highlights
(Unaudited)
| At or for the Six Months Ended | |||||||
| June 30, | June 30, | ||||||
| 2021 | 2020 | ||||||
| Return on average assets: (1, 5) | |||||||
| GAAP | 1.56 | % | 1.31 | % | |||
| Non-GAAP (2) | 1.63 | % | 1.78 | % | |||
| Return on average equity: (1, 6) | |||||||
| GAAP | 11.01 | % | 10.77 | % | |||
| Non-GAAP (2) | 11.50 | % | 14.67 | % | |||
| Net interest margin | 2.98 | % | 2.89 | % | |||
| Non-interest income to total income: | |||||||
| GAAP | 65.15 | % | 68.54 | % | |||
| Non-GAAP (2) | 65.19 | % | 68.54 | % | |||
| Profit percentage (9) | |||||||
| GAAP | 23.54 | % | 23.26 | % | |||
| Non-GAAP (2) | 24.71 | % | 28.69 | % | |||
| Efficiency ratio: (7) | |||||||
| GAAP | 76.46 | % | 76.74 | % | |||
| Non-GAAP (2) | 75.29 | % | 71.31 | % | |||
| Tier 1 capital to average assets (3) | 13.72 | % | 11.93 | % | |||
| Non-performing assets as a percentage of total assets (4) | 0.86 | % | 0.47 | % | |||
| Allowance for loan losses as a percentage of total loans (4) | 1.19 | % | 1.22 | % | |||
| Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4) | 1.22 | % | 1.26 | % | |||
| Allowance for loan losses as a percentage of non-performing assets | 101.89 | % | 179.31 | % | |||
| Allowance for loan losses as a percentage of non-performing loans | 101.89 | % | 186.60 | % | |||
| Tangible book value per share (8) | $ | 19.16 | $ | 15.43 | |||
| Outstanding shares | 5,254,522 | 5,479,884 | |||||
| (1) | Annualized for quarterly periods presented. |
| (2) | See page 16 – Reconciliation of GAAP to Non-GAAP Net Income. |
| (3) | Average assets calculated on a quarterly basis for all periods presented. |
| (4) | Total loans exclude loans held for sale but includes net deferred loan costs and fees. |
| (5) | This non-GAAP measure represents net income divided by average total assets. |
| (6) | This non-GAAP measure represents net income divided by average stockholders’ equity. |
| (7) | This non-GAAP measure represents total non-interest expenses divided by net interest income and non-interest income. |
| (8) | This non-GAAP measure represents total stockholders’ equity, minus intangible assets of $28,000 and $38,000 at June 30, 2021 and June 30, 2020, respectively, divided by outstanding shares at period end. |
| (9) | This non-GAAP measure represents net interest income plus noninterest income less non-interest expense divided by net interest income plus non-interest income. |
Randolph Bancorp, Inc.
COVID-19 Supplemental Disclosure
(Unaudited)
Loan Payment Deferrals
| As of June 30, 2021 | |||||||||||
| Commercial loans | Residential and consumer loans | Residential loans serviced for others | |||||||||
| (Dollars in thousands) | |||||||||||
| Balance outstanding | $ | 202,743 | $ | 343,655 | $ | 1,999,083 | |||||
| COVID-19 related loan payment deferrals: | |||||||||||
| Loans in COVID-19-related loan payment deferral | $ | 1,006 | $ | 2,209 | $ | 5,488 | |||||
| Loans in deferral as a percentage of category loans | 0.5 | % | 0.6 | % | 0.3 | % | |||||
| Loans with suspended payment | $ | 1,006 | $ | 1,957 | $ | 1,880 | |||||
| Loans with reduced payment | - | 252 | 3,608 | ||||||||
| Loans which obtained a COVID-19-related payment deferral but | |||||||||||
| have since resumed payment | $ | 36,955 | $ | 17,683 | $ | 61,872 | |||||
| Loans reinstated (borrower paid any unpaid principal and interest) | 1,551 | 2,235 | 5,767 | ||||||||
| Loans on a repayment plan | - | - | 1,341 | ||||||||
| Loans which resumed payment but deferred principal and/or | |||||||||||
| interest payments to maturity | 28,594 | 9,309 | 39,077 | ||||||||
| Loans which were paid off completely | 6,810 | 5,342 | 15,687 | ||||||||
Randolph Bancorp, Inc.
COVID-19 Supplemental Disclosure
(Unaudited)
COVID-19 Highly Impacted Sectors
| As of June 30, 2021 | ||||||||||||||||||||||||||||
| Exposure Balance | Exposure by Risk Weighting | |||||||||||||||||||||||||||
| Balance | ||||||||||||||||||||||||||||
| Real | Commercial | with | ||||||||||||||||||||||||||
| Estate | & | Deferred | ||||||||||||||||||||||||||
| Industry (1) | Total | Secured | Industrial | Construction | Pass | Criticized | Payments | |||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||
| Group home/care facility | $ | 1,067 | $ | 1,067 | $ | - | $ | - | $ | 1,067 | $ | - | $ | - | ||||||||||||||
| Hotels/hospitality | 9,592 | 9,528 | 64 | - | 64 | 9,528 | - | |||||||||||||||||||||
| Restaurants/food service | 2,639 | 1,526 | 1,113 | - | 2,639 | - | - | |||||||||||||||||||||
| Retail/shopping center | 21,887 | 14,560 | - | 3,662 | 16,604 | 1,618 | 1,006 | |||||||||||||||||||||
| Other sectors (2) | 11,385 | 9,433 | 95 | 300 | 9,208 | 620 | - | |||||||||||||||||||||
| Total loans in COVID-19 impacted sectors | $ | 41,348 | $ | 36,114 | $ | 1,272 | $ | 3,962 | $ | 29,582 | $ | 11,766 | $ | 1,006 | ||||||||||||||
| Percentage of commercial loans outstanding | 22.7 | % | 24.6 | % | 5.3 | % | 34.5 | % | ||||||||||||||||||||
| Commercial loans outstanding | $ | 182,277 | $ | 146,930 | $ | 23,869 | $ | 11,478 | ||||||||||||||||||||
| Loan to value secured by real estate (3) | 54.6 | % | 63.6 | % | ||||||||||||||||||||||||
| (1) | This disclosure focuses on industries with balances that are significant to the portfolio at June 30, 2021 and omits industries affected by the COVID-19 pandemic (oil and gas, transportation, etc.) to which the Company has minimal or no exposure. This disclosure also excludes SBA PPP Loans, given their government guarantee. |
| (2) | Includes customers operating in various sectors which have been impacted by COVID-19. |
| (3) | Loan to value secured by real estate equals the exposure balance divided by the most recent appraised value. |
For More Information, Contact:
William M. Parent, President and Chief
Executive Officer (617-925-1955)