Randolph Bancorp, Inc. Announces First Quarter 2022 Financial Results


QUINCY, Mass., April 26, 2022 (GLOBE NEWSWIRE) -- Randolph Bancorp, Inc. (the “Company” or “Randolph”) (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the “Bank”), today announced a net loss of $235,000, or $0.05 per basic share and diluted share, for the three months ended March 31, 2022 compared to 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 and net income of $4.1 million, or $0.81 per basic share and $0.78 per diluted share, for the three months ended March 31, 2021. Excluding one-time events of $240,000 in severance expenses, $588,000 in merger expenses, and $290,000 for the reversal of a cease use liability, net income on a non-GAAP basis was $318,000, or $0.06 per diluted share, for the three months ended March 31, 2022. Excluding one-time events of $26,000 in severance expenses and $55,000 in loss on 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 charges of $109,000 in severance expenses, net income on a non-GAAP basis for the three months ended March 31, 2021 was $4.2 million, or $0.79 per diluted share.

At March 31, 2022, total assets were $770.3 million, compared to $803.3 million at December 31, 2021, a decrease of $33.0 million, or 4.1%. Total loans increased by $35.0 million, or 6.4%, to $584.8 million at March 31, 2022 from $549.8 million at December 31, 2021, and loans held for sale decreased by $22.1 million to $22.7 million at March 31, 2022 from $44.8 million at December 31, 2021. Cash and cash equivalents decreased by $44.4 million, or 38.4%, to $71.1 million at March 31, 2022, from $115.4 million as of December 31, 2021, as a result of decreases in brokered deposits and Federal Home Loan Bank of Boston (“FHLBB”) advances of $17.0 million and $5.0 million, respectively, in the quarter, dividends paid of $11.2 million, and net loan growth of $35.0 million, partially offset by a decrease in loans held for sale of $22.1 million. Compared to March 31, 2021, total assets grew $32.1 million, or 4.3%, from $738.2 million. The growth from the prior year period was driven by increases in total loans of $87.0 million, or 17.5%, and cash and cash equivalents of $16.1 million, or 29.3%, partially offset by a decrease in loans held for sale of $70.5 million, or 75.6%.

William M. Parent, President and Chief Executive Officer, stated, “In the first quarter, we saw many challenges in the mortgage banking environment, as the extent and pace of interest rate increases, and the slower winter season negatively impacted residential lending production and mortgage banking profitability. We are excited by the recently announced merger with Hometown Financial Group, Inc. and look forward to the anticipated closing of that transaction in the fourth quarter of 2022. I want to thank all of our employees who continue to contribute to the ongoing improvement of our company and their commitment to our customers.”

First Quarter Operating Results
Net interest income decreased by $427,000, or 7.5%, to $5.3 million for the three months ended March 31, 2022 from $5.7 million for the three months ended December 31, 2021. This decrease was primarily due to a 14.1% decrease in average balances of 1-4 family residential loans, as a result of declining loans held for sale and the full quarter impact of a $35.6 million sale from portfolio occurring late in the fourth quarter of 2021 and a $52,000 decline in accretion of fees earned from the Small Business Administration’s Paycheck Protection Program (“SBA PPP”) to $106,000 in the first quarter of 2022. The yield earned on interest-earning assets decreased by 28 basis points from the prior quarter due to the change in asset mix, while the rate paid on interest-bearing liabilities was unchanged from the prior quarter. Accordingly, the net interest margin decreased by 28 basis points, to 2.86% in the first quarter of 2022 from 3.14% in the fourth quarter of 2021.

Net interest income increased by $176,000, or 3.5%, to $5.3 million for the three months ended March 31, 2022, from $5.1 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin decreased by 14 basis points to 2.86%, from 3.00%. The improvement in net interest income primarily reflects a decrease in the cost of interest-bearing liabilities of 19 basis points from the prior year quarter.

The Company recognized a provision for loan losses of $71,000 for the quarter ended March 31, 2022, driven by loan growth. The allowance for loan losses was 1.09%, 1.14% and 1.32% of total loans at March 31, 2022, December 31, 2021 and March 31, 2021, respectively, and was 237.2%, 239.7% and 79.0% of non-performing assets at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

Non-interest income decreased $2.3 million, or 51.7%, to $2.2 million for the quarter ended March 31, 2022 from $4.5 million in the quarter ended December 31, 2021, due to a decrease of $2.5 million in the net gain on loan origination and sale activities. Sold mortgages totaled $129.9 million in the first quarter of 2022, compared to $297.3 million in the fourth quarter of 2021. The first quarter of 2022 ended with a mortgage pipeline of $42.7 million, compared to a pipeline of $85.9 million at the end of the fourth quarter of 2021, and loans held for sale were $22.7 million as of March 31, 2022, compared to $44.8 million as of December 31, 2021. Decreasing sales volumes and declines in the fair value of loans held for sale, reflecting rising interest rates and seasonality, contributed to the erosion in the gain on loan origination and sale activities from the prior quarter. Mortgage servicing fees increased $91,000, or 35.4%, to $348,000 for the first quarter of 2022 from $257,000 in the fourth quarter of 2021 as a result of a release to the valuation allowance of mortgage loan servicing rights of $135,000 in the first quarter of 2022, compared to a release of $43,000 in the fourth quarter of 2021, as interest rates increased at an accelerated pace in the first quarter of 2022.

Non-interest income decreased $10.2 million, or 82.4%, to $2.2 million for the quarter ended March 31, 2022 from $12.4 million for the quarter ended March 31, 2021, principally due to a decrease of $9.7 million in the net gain on loan origination and sale activities. Sold mortgage loans totaled $129.9 million in the first quarter of 2022, compared to $503.3 million in the first quarter of 2021. The first quarter of 2022 ended with a mortgage pipeline of $42.7 million, compared to a pipeline of $239.5 million at the end of the first quarter of 2021. Mortgage servicing fees decreased $431,000 in the quarter ended March 31, 2022, relative to the prior year quarter, principally due to $315,000 in sub-servicer expenses incurred during the first quarter of 2022, as well as a decline in the release to the valuation allowance of mortgage loan servicing rights to $135,000 in the quarter ended March 31, 2022, compared to a release of $421,000 in the quarter ended March 31, 2021.

Non-interest expenses decreased $515,000, or 5.6%, in the quarter ended March 31, 2022 from $9.2 million in the quarter ended December 31, 2021. The decrease was due to a reduction in salaries and employee benefits expense of $930,000, or 15.3%, primarily attributed to lower commissions and incentives associated with lower residential loan production and by reductions in headcount related to the Company’s reduction in force initiative during the first quarter of 2022. Occupancy and equipment expenses decreased $348,000, or 48.8%, primarily due to the reversal of a cease use liability of $290,000 during the quarter. The decreases in salaries and employee benefits expenses and occupancy and equipment expenses were partially offset by severance expenses of $240,000 and increases to professional fees of $700,000, or 215.4%, as a result of $588,000 in merger expenses, in addition to seasonal increases in professional fees for annual reporting requirements.

Non-interest expenses decreased $3.2 million, or 27.2%, to $8.7 million in the quarter ended March 31, 2022 from $12.0 million in the quarter ended March 31, 2021. The decrease was principally due to a decrease in salaries and employee benefits of $3.3 million, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production and reduced headcount. The decreases in salaries and benefits expenses and occupancy and equipment expenses were partially offset by severance related costs $240,000 and merger expenses of $588,000 during the first quarter of 2022.

The income tax benefit was $1.1 million for the three months ended March 31, 2022, compared to an income tax expense of $330,000 for the three months ended December 31, 2021 and $1.7 million for the three months ended March 31, 2021. Non-qualified stock option exercises during the quarter contributed to the income tax benefit, in addition to the net loss generated during the quarter.

Balance Sheet
At March 31, 2022, total assets amounted to $770.3 million, compared to $803.3 million at December 31, 2021, a decrease of $33.0 million, or 4.1%. A $44.4 million decrease in cash and cash equivalents and a $22.1 million decrease in loans held for sale from the prior quarter were partially offset by a $35.0 million increase in net loans. The increase in net loans was primarily the result of a $35.4 million increase in 1-4 family residential loans from the prior quarter and a $1.8 million increase in commercial real estate loans, partially offset by decreases in construction and commercial and industrial loans. Deposits decreased by $13.5 million, or 2.1%, in the quarter, due to a $17.0 million decrease in brokered deposits, partially offset by an increase of $4.4 million in savings accounts and $2.2 million in money market accounts, as the Company managed its excess liquidity and the cost of its funding base.

Total assets at March 31, 2022 increased $32.1 million, or 4.3%, to $770.3 million from $738.2 million at March 31, 2021. Contributing to asset growth was an $87.6 million, or 17.7%, increase in net loans to $579.6 million at March 31, 2022 from $492.0 million at March 31, 2021. Cash and cash equivalents increased by $16.1 million, or 29.3%, to $71.1 million at March 31, 2022 from $55.0 million at March 31, 2021, principally due an increase of $64.4 million, or 11.5%, of deposits. Commercial real estate loans increased by $52.3 million, or 35.6%, as we focus on diversifying our loan mix. FHLBB advances decreased by $15.0 million to $45.0 million at March 31, 2022, from $60.0 million at March 31, 2021.

Total stockholders’ equity was $88.5 million at March 31, 2022 compared to $100.9 million at December 31, 2021. The decrease of $12.4 million reflects a net loss of $235,000, dividends of $11.2 million, a $1.8 million change in accumulated other comprehensive loss, net of taxes, as a result of the impact of increasing interest rates on available for sale securities, and share repurchases of $1.3 million, partially offset by proceeds from the exercise of options of $1.8 million and stock-based compensation of $284,000.

Total stockholders’ equity was $88.5 million at March 31, 2022 compared to $100.9 million at March 31, 2021. The decrease of $12.4 million relates mainly to dividends of $12.0 million, share repurchases of $7.0 million, and a change in accumulated other comprehensive loss, net of taxes, of $2.1 million, partially offset by net income over the past twelve months of $5.3 million, proceeds from the exercise of options of $2.0 million and stock-based compensation over the past twelve months of $1.2 million.

Proposed Transaction with Hometown Financial
On March 28, 2022, the Company and Hometown Financial Group, Inc. (“Hometown”) entered into an Agreement and Plan of Merger pursuant to which, through a series of transactions, Hometown will acquire the Company in a cash transaction for total consideration valued at approximately $146.5 million. Under the terms of the Agreement and Plan of Merger, Company shareholders will receive $27.00 for each share of Company common stock. The transaction is expected to close in the fourth quarter of 2022 and is subject to customary closing conditions, including approval by the shareholders of the Company and required regulatory approvals.

Additional information about the transaction can be found in the joint press release issued on March 28, 2022, which is available on the Company’s website at www.randolphbancorp.com.

Additional Information about the Proposed Transaction and Where to Find It
In connection with the proposed merger, the Company will file a proxy statement with the Securities and Exchange Commission (“SEC”). Hometown will also file relevant materials in connection with its proposed acquisition of the Company. Shareholders of the Company are urged to read the proxy statement and other relevant documents and any amendments or supplements to those documents, because they will contain important information which should be considered before making any decision regarding the transaction. A free copy of the proxy statement, as well as other filings containing information about the Company and Hometown, when they become available, may be obtained at the SEC’s Internet site (http://www.sec.gov). Copies of the proxy statement may also be obtained, free of charge, from the Company’s website at www.RandolphBancorp.com under the “SEC Filings” tab or by directing a request to:

Lauren Messmore
Executive Vice President and CFO
Randolph Bancorp, Inc.
2 Batterymarch Park, Suite 301
Quincy, MA 02169

Participants in the Solicitation
The Company and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company’s shareholders in connection with the merger. Information about the Company’s directors and executive officers is set forth in the proxy statement for the Company’s 2021 annual meeting of shareholders, as filed with the Securities and Exchange Commission on April 9, 2021 and other relevant documents regarding the proposed merger to be filed with the SEC. Free copies of these documents may be obtained as described in the preceding paragraph.

The information available through Randolph’s website is not and shall not be incorporated by reference into this or other filings that the Company makes with the SEC.

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 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, failure to obtain necessary regulatory approvals for the proposed transaction with Hometown; failure to obtain shareholder approvals or to satisfy any of the conditions to the proposed transaction with Hometown on a timely basis or at all or other delays in completing the merger; the reputational risks and the reaction of Randolph’s customers to the proposed transaction; 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.

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

              % Change 
  March 31,  December 31,  March 31,  Mar 2022 vs.  Mar 2022 vs. 
  2022  2021  2021  Dec 2021  Mar 2021 
Assets                    
Cash and cash equivalents $71,072  $115,449  $54,950   (38.4)%  29.3%
Securities available for sale, at fair value  48,836   51,666   54,148   (5.5)%  (9.8)%
Loans held for sale, at fair value  22,698   44,766   93,176   (49.3)%  (75.6)%
Loans:                    
1-4 family residential  271,755   236,364   239,190   15.0%  13.6%
Home equity  58,501   57,295   49,073   2.1%  19.2%
Commercial real estate  199,255   197,423   146,930   0.9%  35.6%
Construction  32,544   33,961   29,975   (4.2)%  8.6%
Total real estate loans  562,055   525,043   465,168   7.0%  20.8%
Commercial and industrial  15,478   17,242   23,869   (10.2)%  (35.2)%
Consumer  7,267   7,552   8,724   (3.8)%  (16.7)%
Total loans  584,800   549,837   497,761   6.4%  17.5%
Allowance for loan losses  (6,357)  (6,289)  (6,563)  1.1%  (3.1)%
Net deferred loan costs and fees, and purchase premiums  1,148   1,073   785   7.0%  46.2%
Loans, net  579,591   544,621   491,983   6.4%  17.8%
Federal Home Loan Bank of Boston stock, at cost  2,734   2,940   3,576   (7.0)%  (23.5)%
Accrued interest receivable  1,434   1,500   1,501   (4.4)%  (4.5)%
Mortgage servicing rights, net  15,378   15,616   14,744   (1.5)%  4.3%
Premises and equipment, net  7,718   7,684   4,709   0.4%  63.9%
Bank-owned life insurance  8,824   8,784   8,662   0.5%  1.9%
Foreclosed real estate, net  -   -   132  -%  (100.0)%
Other assets  11,999   10,252   10,607   17.0%  13.1%
Total assets $770,284  $803,278  $738,188   (4.1)%  4.3%
                     
Liabilities and Stockholders' Equity                    
Deposits:                    
Non-interest bearing $142,793  $145,666  $118,623   (2.0)%  20.4%
Savings accounts  196,145   191,712   192,712   2.3%  1.8%
NOW accounts  53,329   53,996   62,772   (1.2)%  (15.0)%
Money market accounts  92,769   90,544   78,236   2.5%  18.6%
Term certificates  106,515   106,112   75,690   0.4%  40.7%
Interest bearing brokered  33,128   50,117   32,225   (33.9)%  2.8%
Total deposits  624,679   638,147   560,258   (2.1)%  11.5%
Federal Home Loan Bank of Boston advances  45,000   50,000   60,024   (10.0)%  (25.0)%
Mortgagors' escrow accounts  2,773   2,128   1,924   30.3%  44.1%
Post-employment benefit obligations  2,064   2,222   2,235   (7.1)%  (7.7)%
Other liabilities  7,290   9,878   12,888   (26.2)%  (43.4)%
Total liabilities  681,806   702,375   637,329   (2.9)%  7.0%
Stockholders' Equity:                    
Common stock  52   50   53   4.0%  (1.9)%
Additional paid-in capital  44,904   44,078   48,613   1.9%  (7.6)%
Retained earnings  49,042   60,524   55,801   (19.0)%  (12.1)%
ESOP-Unearned compensation  (3,521)  (3,568)  (3,709)  (1.3)%  (5.1)%
Accumulated other comprehensive income (loss), net of tax  (1,999)  (181)  101   1004.4%  (2079.2)%
Total stockholders' equity  88,478   100,903   100,859   (12.3)%  (12.3)%
Total liabilities and stockholders' equity $770,284  $803,278  $738,188   (4.1)%  4.3%

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

  March 31,  December 31,  September 30,  June 30,  March 31, 
  2022  2021  2021  2021  2021 
Assets                    
Cash and cash equivalents $71,072  $115,449  $12,876  $34,876  $54,950 
Securities available for sale, at fair value  48,836   51,666   51,725   50,212   54,148 
Loans held for sale, at fair value  22,698   44,766   75,400   74,277   93,176 
Loans:                    
1-4 family residential  271,755   236,364   265,561   263,992   239,190 
Home equity  58,501   57,295   56,124   50,555   49,073 
Commercial real estate  199,255   197,423   185,100   167,691   146,930 
Construction  32,544   33,961   34,479   29,140   29,975 
Total real estate loans  562,055   525,043   541,264   511,378   465,168 
Commercial and industrial  15,478   17,242   19,896   25,826   23,869 
Consumer  7,267   7,552   8,860   9,194   8,724 
Total loans  584,800   549,837   570,020   546,398   497,761 
Allowance for loan losses  (6,357)  (6,289)  (6,432)  (6,523)  (6,563)
Net deferred loan costs and fees, and purchase premiums  1,148   1,073   1,031   785   785 
Loans, net  579,591   544,621   564,619   540,660   491,983 
Federal Home Loan Bank of Boston stock, at cost  2,734   2,940   3,239   2,855   3,576 
Accrued interest receivable  1,434   1,500   1,763   1,523   1,501 
Mortgage servicing rights, net  15,378   15,616   15,402   15,375   14,744 
Premises and equipment, net  7,718   7,684   6,462   5,115   4,709 
Bank-owned life insurance  8,824   8,784   8,744   8,703   8,662 
Foreclosed real estate, net  -   -   -   -   132 
Other assets  11,999   10,252   10,867   10,546   10,607 
Total assets $770,284  $803,278  $751,097  $744,142  $738,188 
                     
Liabilities and Stockholders' Equity                    
Deposits:                    
Non-interest bearing $142,793  $145,666  $134,058  $124,683  $118,623 
Savings accounts  196,145   191,712   188,346   190,584   192,712 
NOW accounts  53,329   53,996   53,804   51,059   62,772 
Money market accounts  92,769   90,544   73,562   73,967   78,236 
Term certificates  106,515   106,112   73,519   74,631   75,690 
Interest bearing brokered  33,128   50,117   50,116   57,059   32,225 
Total deposits  624,679   638,147   573,405   571,983   560,258 
Federal Home Loan Bank of Boston advances  45,000   50,000   62,900   50,016   60,024 
Mortgagors' escrow accounts  2,773   2,128   1,905   1,783   1,924 
Post-employment benefit obligations  2,064   2,222   2,182   2,226   2,235 
Other liabilities  7,290   9,878   10,108   17,424   12,888 
Total liabilities  681,806   702,375   650,500   643,432   637,329 
Stockholders' Equity:                    
Common stock  52   50   50   52   53 
Additional paid-in capital  44,904   44,078   43,574   46,740   48,613 
Retained earnings  49,042   60,524   60,504   57,378   55,801 
ESOP-Unearned compensation  (3,521)  (3,568)  (3,615)  (3,662)  (3,709)
Accumulated other comprehensive income (loss), net of tax  (1,999)  (181)  84   202   101 
Total stockholders' equity  88,478   100,903   100,597   100,710   100,859 
Total liabilities and stockholders' equity $770,284  $803,278  $751,097  $744,142  $738,188 
                     

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

  Three Months Ended  % Change 
  March 31,  December 31,  March 31,  Mar 2022 vs.  Mar 2022 vs. 
  2022  2021  2021  Dec 2021  Mar 2021 
Interest and dividend income:                    
Loans $5,467  $5,923  $5,508   (7.7)%  (0.7)%
Securities-taxable  216   217   240   (0.5)%  (10.0)%
Securities-tax exempt  4   4   6   0.0%  (33.3)%
Interest-bearing deposits and certificates of deposit  42   13   7   223.1%  500.0%
Total interest and dividend income  5,729   6,157   5,761   (7.0)%  (0.6)%
                     
Interest expense:                    
Deposits  315   308   438   2.3%  (28.1)%
Borrowings  147   155   232   (5.2)%  (36.6)%
Total interest expense  462   463   670   (0.2)%  (31.0)%
                     
Net interest income  5,267   5,694   5,091   (7.5)%  3.5%
Provision (credit) for loan losses  71   (108)  (213)  (165.7)%  (133.3)%
Net interest income after provision (credit) for loan losses  5,196   5,802   5,304   (10.4)%  (2.0)%
                     
Non-interest income:                    
Customer service fees  365   422   367   (13.5)%  (0.5)%
Gain on loan origination and sale activities, net  1,264   3,723   10,993   (66.0)%  (88.5)%
Mortgage servicing fees, net  348   257   779   35.4%  (55.3)%
Increase in cash surrender value of life insurance  40   41   40   (2.4)%  0.0%
Other  175   92   244   90.2%  (28.3)%
Total non-interest income  2,192   4,535   12,423   (51.7)%  (82.4)%
Non-interest expenses:                    
Salaries and employee benefits  5,154   6,084   8,437   (15.3)%  (38.9)%
Occupancy and equipment  365   713   744   (48.8)%  (50.9)%
Data processing  345   237   263   45.6%  31.2%
Professional fees  1,025   325   561   215.4%  82.7%
Marketing  157   245   170   (35.9)%  (7.6)%
FDIC insurance  58   55   54   5.5%  7.4%
Other non-interest expenses  1,602   1,562   1,722   2.6%  (7.0)%
Total non-interest expenses  8,706   9,221   11,951   (5.6)%  (27.2)%
Income (loss) before income taxes  (1,318)  1,116   5,776   (218.1)%  (122.8)%
Income tax expense (benefit)  (1,083)  330   1,664   (428.2)%  (165.1)%
Net income (loss) $(235) $786  $4,112   (129.9)%  (105.7)%
                     
Net income (loss) per share:                    
Basic $(0.05) $0.17  $0.81         
Diluted $(0.05) $0.16  $0.78         
                     
Weighted average shares outstanding:                    
Basic  4,815,325   4,743,833   5,056,165         
Diluted  5,014,538   4,993,750   5,254,907         
                     
Dividends declared per share $2.15  $0.15  $-         
                     

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

  Three Months Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
  2022  2021  2021  2021  2021 
Interest and dividend income:                    
Loans $5,467  $5,923  $6,226  $5,505  $5,508 
Securities-taxable  216   217   219   223   240 
Securities-tax exempt  4   4   4   6   6 
Interest-bearing deposits and certificates of deposit  42   13   4   8   7 
Total interest and dividend income  5,729   6,157   6,453   5,742   5,761 
                     
Interest expense:                    
Deposits  315   308   299   345   438 
Borrowings  147   155   178   198   232 
Total interest expense  462   463   477   543   670 
                     
Net interest income  5,267   5,694   5,976   5,199   5,091 
Provision (credit) for loan losses  71   (108)  (90)  (27)  (213)
Net interest income after provision (credit) for loan losses  5,196   5,802   6,066   5,226   5,304 
                     
Non-interest income:                    
Customer service fees  365   422   410   419   367 
Gain on loan origination and sale activities, net  1,264   3,723   7,229   5,740   10,993 
Mortgage servicing fees, net  348   257   274   381   779 
Increase in cash surrender value of life insurance  40   41   41   41   40 
Other  175   92   195   235   244 
Total non-interest income  2,192   4,535   8,149   6,816   12,423 
Non-interest expenses:                    
Salaries and employee benefits  5,154   6,084   6,381   7,310   8,437 
Occupancy and equipment  365   713   714   621   744 
Data processing  345   237   367   301   263 
Professional fees  1,025   325   490   323   561 
Marketing  157   245   134   200   170 
FDIC insurance  58   55   54   54   54 
Other non-interest expenses  1,602   1,562   1,719   1,818   1,722 
Total non-interest expenses  8,706   9,221   9,859   10,627   11,951 
Income (loss) before income taxes  (1,318)  1,116   4,356   1,415   5,776 
Income tax expense (benefit)  (1,083)  330   1,230   (162)  1,664 
Net income (loss) $(235) $786  $3,126  $1,577  $4,112 
                     
Net income (loss) per share:                    
Basic $(0.05) $0.17  $0.64  $0.32  $0.81 
Diluted $(0.05) $0.16  $0.62  $0.31  $0.78 
                     
Weighted average shares outstanding:                    
Basic  4,815,325   4,743,833   4,869,155   4,921,182   5,056,165 
Diluted  5,014,538   4,993,750   5,074,676   5,135,582   5,254,907 
                     
Dividends declared per share $2.15  $0.15  $-  $-  $- 
                     

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

 Three Months Ended 
 March 31, 2022  December 31, 2021  March 31, 2021 
 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)$274,883  $2,400   3.54% $319,855  $2,790   3.46% $336,805  $2,974   3.58%
Home equity 57,046   470   3.34%  57,183   480   3.33%  48,383   433   3.63%
Commercial real estate 197,330   1,921   3.95%  186,943   1,880   3.99%  146,683   1,406   3.89%
Construction 32,734   296   3.67%  34,246   331   3.83%  30,350   295   3.94%
Total real estate loans 561,993   5,087   3.67%  598,227   5,481   3.63%  562,221   5,108   3.68%
Commercial and industrial 16,631   277   6.75%  18,311   331   7.17%  21,860   274   5.08%
Consumer 7,617   103   5.48%  8,313   111   5.30%  9,940   126   5.14%
Total loans 586,241   5,467   3.78%  624,851   5,923   3.76%  594,021   5,508   3.76%
Investment securities(2) (3) 52,930   221   1.69%  54,314   222   1.62%  57,818   247   1.73%
Interest-earning deposits 107,866   42   0.16%  41,161   13   0.13%  35,492   7   0.08%
Total interest-earning assets 747,037   5,730   3.11%  720,326   6,158   3.39%  687,331   5,762   3.40%
Noninterest-earning assets 41,939           43,478           42,045         
Total assets$788,976          $763,804          $729,376         
Interest-bearing liabilities:                                   
Savings accounts 194,120   72   0.15%  191,464   72   0.15%  190,313   98   0.21%
NOW accounts 62,039   43   0.28%  62,838   29   0.18%  69,511   48   0.28%
Money market accounts 93,174   36   0.16%  77,140   36   0.19%  75,994   54   0.29%
Term certificates 143,320   164   0.46%  135,406   171   0.50%  96,978   238   1.00%
Total interest-bearing deposits 492,653   315   0.26%  466,848   308   0.26%  432,796   438   0.41%
FHLBB and FRB advances 48,333   147   1.23%  53,592   155   1.15%  70,857   232   1.33%
Total interest-bearing liabilities 540,986   462   0.35%  520,440   463   0.35%  503,653   670   0.54%
Noninterest-bearing liabilities:                                   
Noninterest-bearing deposits 140,454           127,486           106,929         
Other noninterest-bearing liabilities 11,559           13,305           15,375         
Total liabilities 692,999           661,231           625,957         
Total stockholders' equity 95,977           102,573           103,419         
Total liabilities and stockholders' equity$788,976          $763,804          $729,376         
Net interest income    $5,268          $5,695          $5,092     
Interest rate spread(4)         2.76%          3.04%          2.86%
Net interest-earning assets(5)$206,051          $199,886          $183,678         
Net interest margin(6)         2.86%          3.14%          3.00%
Cost of deposits (8)         0.20%          0.21%          0.33%
Cost of funds (9)         0.27%          0.28%          0.45%
Ratio of interest-earning assets to interest-bearing liabilities 138.09%          138.41%          136.47%        
                                    

(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 March 31, 2022, December 31, 2021, and March 31, 2021, 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.

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

  Three Months Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
  2022  2021  2021  2021  2021 
Interest-earning assets:                    
Loans:                    
1-4 family residential $274,883  $319,855  $345,576  $319,087  $336,805 
Home equity  57,046   57,183   53,345   49,789   48,383 
Commercial real estate  197,330   186,943   174,319   159,423   146,683 
Construction  32,734   34,246   32,690   29,902   30,350 
Total real estate loans  561,993   598,227   605,930   558,201   562,221 
Commercial and industrial  16,631   18,311   22,693   25,497   21,860 
Consumer  7,617   8,313   12,820   9,052   9,940 
Total loans  586,241   624,851   641,443   592,750   594,021 
Investment securities  52,930   54,314   54,229   55,376   57,818 
Interest-earning deposits  107,866   41,161   11,002   43,888   35,492 
Total interest-earning assets  747,037   720,326   706,674   692,014   687,331 
Non-interest earning assets  41,939   43,478   44,614   40,257   42,045 
Total assets $788,976  $763,804  $751,288  $732,271  $729,376 
                     
Interest-bearing liabilities:                    
Savings accounts $194,120  $191,464  $189,254  $192,434  $190,313 
NOW accounts  62,039   62,838   61,951   69,730   69,511 
Money market accounts  93,174   77,140   73,662   72,469   75,994 
Term certificates  143,320   135,406   113,787   104,604   96,978 
Total interest-bearing deposits  492,653   466,848   438,654   439,237   432,796 
FHLBB and FRB advances  48,333   53,592   64,047   51,502   70,857 
Total interest-bearing liabilities  540,986   520,440   502,701   490,739   503,653 
Noninterest-bearing liabilities:                    
Noninterest-bearing deposits  140,454   127,486   126,165   124,656   106,929 
Other noninterest-bearing liabilities  11,559   13,305   19,021   13,606   15,375 
Total liabilities  692,999   661,231   647,887   629,001   625,957 
Total stockholders' equity  95,977   102,573   103,401   103,270   103,419 
Total liabilities and stockholders' equity $788,976  $763,804  $751,288  $732,271  $729,376 
                     

Randolph Bancorp, Inc.
Interest Earned and Paid Trend
(Dollars in thousands)
(Unaudited)

  Three Months Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
  2022  2021  2021  2021  2021 
Interest-earning assets:                    
Loans:                    
1-4 family residential $2,400  $2,790  $3,021  $2,763  $2,974 
Home equity  470   480   475   412   433 
Commercial real estate  1,921   1,880   1,809   1,666   1,406 
Construction  296   331   310   289   295 
Total real estate loans  5,087   5,481   5,615   5,130   5,108 
Commercial and industrial  277   331   493   266   274 
Consumer  103   111   118   109   126 
Total loans  5,467   5,923   6,226   5,505   5,508 
Investment securities  221   222   224   230   247 
Interest-earning deposits  42   13   4   8   7 
Total interest-earning assets  5,730   6,158   6,454   5,743   5,762 
                     
Interest-bearing liabilities:                    
Savings accounts $72  $72  $76  $89  $98 
NOW accounts  43   29   23   38   48 
Money market accounts  36   36   41   43   54 
Term certificates  164   171   159   175   238 
Total interest-bearing deposits  315   308   299   345   438 
FHLBB and FRB advances  147   155   178   198   232 
Total interest-bearing liabilities  462   463   477   543   670 
                     
Net interest income  5,268   5,695   5,977   5,200   5,092 
                     

Randolph Bancorp, Inc.
Average Yield Trend(1)
(Dollars in thousands)
(Unaudited)

  Three Months Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
  2022  2021  2021  2021  2021 
Interest-earning assets:                    
Loans:                    
1-4 family residential  3.54%  3.46%  3.47%  3.47%  3.58%
Home equity  3.34%  3.33%  3.53%  3.32%  3.63%
Commercial real estate  3.95%  3.99%  4.12%  4.19%  3.89%
Construction  3.67%  3.83%  3.76%  3.88%  3.94%
Total real estate loans  3.67%  3.63%  3.68%  3.69%  3.68%
Commercial and industrial  6.75%  7.17%  8.62%  4.18%  5.08%
Consumer  5.48%  5.30%  3.65%  4.83%  5.14%
Total loans  3.78%  3.76%  3.85%  3.73%  3.76%
Investment securities  1.69%  1.62%  1.64%  1.67%  1.73%
Interest-earning deposits  0.16%  0.13%  0.14%  0.07%  0.08%
Total interest-earning assets  3.11%  3.39%  3.62%  3.33%  3.40%
                     
Interest-bearing liabilities:                    
Savings accounts  0.15%  0.15%  0.16%  0.19%  0.21%
NOW accounts  0.28%  0.18%  0.15%  0.22%  0.28%
Money market accounts  0.16%  0.19%  0.22%  0.24%  0.29%
Term certificates  0.46%  0.50%  0.55%  0.67%  1.00%
Total interest-bearing deposits  0.26%  0.26%  0.27%  0.32%  0.41%
FHLBB and FRB advances  1.23%  1.15%  1.10%  1.54%  1.33%
Total interest-bearing liabilities  0.35%  0.35%  0.38%  0.44%  0.54%
                     
Interest rate spread  2.76%  3.04%  3.24%  2.89%  2.86%
Net interest rate margin  2.86%  3.14%  3.36%  3.01%  3.00%
Cost of deposits  0.20%  0.21%  0.21%  0.25%  0.33%
Cost of funds  0.27%  0.28%  0.30%  0.35%  0.45%
Ratio of interest-earning assets to interest-bearing liabilities  138.09%  138.41%  140.58%  141.01%  136.47%
                     

(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.

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

  Three Months Ended 
  March 31, 2022 vs. December 31, 2021 
  Increase (Decrease)  Total 
  Due to Changes in  Increase 
  Volume  Rate  (Decrease) 
Interest-earning assets:            
Loans:            
1-4 family residential $(338) $(52)  (390)
Home equity  3   (13)  (10)
Commercial real estate  68   (27)  41 
Construction  (12)  (23)  (35)
Total real estate loans  (279)  (115)  (394)
Commercial and industrial  (27)  (27)  (54)
Consumer  (7)  (1)  (8)
Total loans  (313)  (143)  (456)
Investment securities  (4)  3   (1)
Interest-earning deposits  17   12   29 
Total interest-earning assets  (300)  (128)  (428)
Interest-bearing liabilities:            
Savings accounts  -   -   - 
NOW accounts  -   14   14 
Money market accounts  6   (6)  - 
Term certificates  8   (15)  (7)
Total interest-bearing deposits  14   (7)  7 
FHLBB and FRB advances  (12)  4   (8)
Total interest-bearing liabilities  2   (3)  (1)
Change in net interest income $(302) $(125) $(427)
             

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

  Three Months Ended 
  March 31, 2022 vs. 2021 
  Increase (Decrease)  Total 
  Due to Changes in  Increase 
  Volume  Rate  (Decrease) 
Interest-earning assets:            
Loans:            
1-4 family residential $(488) $(86)  (574)
Home equity  77   (40)  37 
Commercial real estate  447   68   515 
Construction  21   (20)  1 
Total real estate loans  57   (78)  (21)
Commercial and industrial  (60)  63   3 
Consumer  (28)  5   (23)
Total loans  (31)  (10)  (41)
Investment securities  (17)  (9)  (26)
Interest-earning deposits  5   30   35 
Total interest-earning assets  (43)  11   (32)
Interest-bearing liabilities:            
Savings accounts  2   (28)  (26)
NOW accounts  (4)  (1)  (5)
Money market accounts  10   (28)  (18)
Term certificates  86   (160)  (74)
Total interest-bearing deposits  94   (217)  (123)
FHLBB and FRB advances  (66)  (19)  (85)
Total interest-bearing liabilities  28   (236)  (208)
Change in net interest income $(71) $247  $176 
             

Randolph Bancorp, Inc.
Quarterly Trend in Mortgage Banking Income
(Dollars in thousands)
(Unaudited)

  Three Months Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
  2022  2021  2021  2021  2021 
Gain on loan origination and sale activities, net                    
Gain on sale of mortgages and realized gain from derivative financial instruments, net $3,093  $4,818  $6,339  $6,545  $15,876 
Net change in fair value of loans held for sale and portfolio loans accounted for at fair value  (1,559)  (1,360)  549   1,091   (3,816)
Capitalized residential mortgage loan servicing rights  377   942   783   1,476   2,797 
Net change in fair value of derivative loan commitments and forward loan sale commitments  (647)  (677)  (442)  (3,372)  (3,864)
Gain on loan origination and sales activities, net $1,264  $3,723  $7,229  $5,740  $10,993 
                     
Mortgage servicing fees, net                    
Residential mortgage loan servicing fees $1,277  $1,355  $1,282  $1,205  $1,170 
Amortization of residential mortgage loan servicing rights  (749)  (831)  (795)  (759)  (812)
Release (provision) to the valuation allowance of mortgage loan servicing rights  135   43   39   (65)  421 
Sub-servicer expenses (1)  (315)  (310)  (252)  -   - 
Mortgage servicing fees, net $348  $257  $274  $381  $779 
Total gain on loan origination and sales activities and mortgage servicing fees $1,612  $3,980  $7,503  $6,121  $11,772 
                     
Principal balance of loans originated for sale $110,371  $222,644  $260,519  $309,033  $487,675 
Principal balance of loans sold $129,858  $297,316  $260,473  $342,762  $503,285 
Ending notional amount of derivative loan commitments $42,678  $85,887  $158,085  $139,748  $239,509 
Loans held for sale, at fair value $22,698  $44,766  $75,400  $74,277  $93,176 
Margin on loans sold (2)  2.67%  1.94%  2.73%  2.34%  3.71%
                     

(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.

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

  For the Three Months Ended March 31, 2022 
  Envision Bank  Envision Mortgage  Consolidated Total 
Net interest income $5,011  $256  $5,267 
Provision for loan losses  71   -   71 
Net interest income after provision for loan losses  4,940   256   5,196 
             
Non-interest income:            
Customer service fees  355   10   365 
Gain on loan origination and sale activities, net (1)  -   1,991   1,991 
Mortgage servicing fees, net  (205)  553   348 
Other  99   116   215 
Total non-interest income  249   2,670   2,919 
             
Non-interest expenses:            
Salaries and employee benefits  1,935   3,219   5,154 
Occupancy and equipment  512   (147)  365 
Other non-interest expenses(2)  1,911   1,276   3,187 
Total non-interest expenses  4,358   4,348   8,706 
             
Income (loss) before income taxes and elimination of inter-segment profit $831  $(1,422)  (591)
             
Elimination of inter-segment profit          (727)
Income (loss) before income taxes          (1,318)
             
Income tax expense (benefit)          (1,083)
Net income (loss)         $(235)
             

(1) Before elimination of inter-segment profit.
(2) Other non-interest expenses include merger expenses of $588,000. The full amount was allocated to Envision Bank.

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

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

  For the Three Months Ended December 31, 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.

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

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

(1) Before elimination of inter-segment profit.

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

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

    Quarter Ended 
    March 31, 2022 
Adjustments Income Statement Section Income (Loss) Before Taxes  Provision (Credit) for Income Taxes  Net Income (Loss)  Earnings (Loss) per Share (diluted) 
GAAP basis   $(1,318) $(1,083) $(235) $(0.05)
Merger expenses(1) Non-interest expense  588   -   588   0.12 
Reversal of cease use liability Non-interest expense  (290)  (89)  (201)  (0.04)
Severance expenses Non-interest expense  240   74   166   0.03 
Non-GAAP basis   $(780) $(1,098) $318  $0.06 
                   
    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 
                   

(1) Merger expenses are not tax-deductible and therefore no provision for income taxes is calculated in the table.

Randolph Bancorp, Inc.
Selected Financial Highlights
(Unaudited)

  At or for the Three Months Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
  2022  2021  2021  2021  2021 
Return on average assets: (1, 5)                    
GAAP  (0.12%)  0.41%  1.66%  0.86%  2.26%
Non-GAAP (2)  0.16%  0.44%  1.79%  0.96%  2.30%
                     
Return on average equity: (1, 6)                    
GAAP  (0.98%)  3.07%  12.09%  6.11%  15.90%
Non-GAAP (2)  1.33%  3.29%  13.00%  6.79%  16.21%
                     
Net interest margin (10)  2.86%  3.14%  3.36%  3.01%  3.00%
                     
Non-interest income to total income:                    
GAAP  29.39%  44.33%  57.69%  56.73%  70.93%
Non-GAAP (2)  29.39%  44.63%  57.69%  56.83%  70.93%
                     
Profit percentage (9)                    
GAAP  (16.72%)  9.85%  30.20%  11.55%  31.76%
Non-GAAP (2)  (9.51%)  10.59%  32.53%  13.56%  32.39%
                     
Efficiency ratio: (7)                    
GAAP  116.72%  90.15%  69.80%  88.45%  68.24%
Non-GAAP (2)  109.51%  89.41%  67.47%  86.44%  67.61%
                     
Tier 1 capital to average assets (3)  11.47%  13.23%  13.38%  13.72%  13.81%
                     
Non-performing assets as a percentage of total assets (4)  0.37%  0.33%  0.20%  0.86%  1.14%
                     
Allowance for loan losses as a percentage of total loans (4)  1.09%  1.14%  1.13%  1.19%  1.32%
Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4)  1.09%  1.15%  1.14%  1.22%  1.36%
                     
Allowance for loan losses as a percentage of non-performing assets  237.17%  239.67%  427.66%  101.89%  78.99%
Allowance for loan losses as a percentage of non-performing loans  237.17%  239.67%  427.66%  101.89%  77.75%
                     
Tangible book value per share (8) $17.07  $19.73  $19.71  $19.16  $18.80 
Outstanding shares  5,180,670   5,113,825   5,103,619   5,254,522   5,364,240 
                     

(1) Annualized for quarterly periods presented.
(2) See page 20 – 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.
(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 $22,000, $24,000, $26,000, $28,000, and $31,000 at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, 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.

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