STOUGHTON, Mass., April 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 $4.1 million, or $0.81 per basic share and $0.78 per diluted share, for the three months ended March 31, 2021 compared to net income of $5.3 million, or $1.03 per basic and $1.01 per diluted share for the three months ended December 31, 2020 and a net loss of $0.8 million, or $0.16 per basic and diluted share, for the three months ended March 31, 2020. 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 one-time charges of $294,000 related to the closing of a residential lending office and $69,000 in severance expenses, earnings were $5.6 million, or $1.06 per diluted share, for the three months ended December 31, 2020.

At March 31, 2021, total assets amounted to $738.2 million, compared to $721.1 million at December 31, 2020, an increase of $17.1 million, or 2.4%. An increase in cash and cash equivalents of $41.2 million was partially offset by a decrease in loans held for sale of $25.9 million relative to the prior quarter. Compared to March 31, 2020, total assets grew $85.3 million, or 13.1% from $652.9 million. The growth from the prior year period was caused by an increase in loans held for sale of $34.4 million, or 58.5%, an increase in commercial real estate loans of $20.3 million, or 16.1%, and an increase in commercial and industrial loans of $14.8 million, or 164.3%, driven by lending associated with the Small Business Administration's (the "SBA's") Paycheck Protection Program ("PPP").

William M. Parent, President and Chief Executive Officer, stated, "The first quarter was another strong quarter for our Company, as mortgage refinancing volume, combined with improving banking results, drove performance metrics to elevated levels. We are very pleased with our performance as we migrate our mortgage banking operations from a higher volume refinance environment to more normalized levels while continuing to expand our consumer and commercial banking business. We remain optimistic regarding local economic activity, our ability to continue to grow our business and generate recurring operating leverage."

First Quarter Operating Results

Net interest income increased by $51,000, or 1.0%, to $5.1 million for the three months ended March 31, 2021 from $5.0 million for the three months ended December 31, 2020. This increase was primarily due to an increase in average loans and a decrease in the cost of funds driven by a shortening of deposit liabilities and a decline in the cost of non-maturity deposits from the prior quarter. The average balance of term certificates decreased $15.3 million, or 13.6%, from the prior quarter and the average balance of savings and NOW accounts increased $19.2 million, or 8.0%, from the prior quarter. This contributed to a decrease of 9 basis points in the cost of interest-bearing liabilities. The net interest margin decreased in the first quarter by 6 basis points to 2.96% from 3.02% in the prior quarter. The change reflects a decrease of 11 basis points in loan yields, due to a decline in the forgiveness of SBA PPP loans, which resulted in a decline in loan yields of 2 basis points, and payoffs of higher yielding loans.

The net interest margin increased in the first quarter of 2021 to 2.96%, from 2.91% in the first quarter of 2020. 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. Net interest income increased by $666,000, or 15.1%, to $5.1 million for the three months ended March 31, 2021 from $4.4 million the same period in the prior year. This increase was primarily due to a decrease in deposit costs, complemented by change in the mix of deposits. The average balance of savings and NOW accounts in the first quarter of 2021 increased $55.5 million, or 41.1% and $30.5 million, or 78.0%, respectively, from the prior year quarter and the average balance of term certificates decreased $91.7 million, or 48.6%, from the prior year quarter, contributing to an 80 basis point decrease in the cost of interest-bearing liabilities. This decrease was primarily driven by an 89 basis point decline in the cost of interest-bearing deposits, as market interest rates declined sharply from the prior year.

The Company recognized a credit for loan losses of $213,000 for the quarter ended March 31, 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. The allowance for loan losses was 1.32%, 1.38% and 1.04% of total loans at March 31, 2021, December 31, 2020 and March 31, 2020, respectively, and was 79.0%, 94.6% and 146.6% of non-performing assets at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

Non-interest income decreased $3.2 million, or 20.3%, to $12.4 million for the quarter ended March 31, 2021 from $15.6 million in the quarter ended December 31, 2020, due to a decrease of $3.6 million in the net gain on loan origination and sale activities, partially offset by an increase of $504,000 related to net mortgage servicing fees. Sold mortgages totaled $503.3 million in the first quarter of 2021, compared to $426.5 million in the fourth quarter of 2020. The first quarter of 2021 ended with a mortgage pipeline of $239.5 million, compared to a pipeline of $396.6 million at the end of the fourth quarter of 2020, contributing to the decrease in the net gain on loan origination and sales activities. Mortgage servicing fees increased $504,000, or 183.3% for the first quarter of 2021 to $779,000 from $275,000 in the fourth quarter of 2020 due to a fair value adjustment of $421,000 in the first quarter of 2021, based on an increase in mortgage interest rates from the prior quarter.

Non-interest income increased $6.0 million, or 92.6%, to $12.4 million for the quarter ended March 31, 2021 from $6.5 million for the quarter ended March 31, 2020, principally due to an increase of $3.8 million in the net gain on loan origination and sale activities and an increase of $2.0 million in net mortgage servicing fees. Sold mortgage loans totaled $503.3 million in the first quarter of 2021, compared to sold mortgage loans of $217.9 million during the first quarter of 2020. The first quarter of 2021 ended with a mortgage pipeline of $239.5 million, compared to a pipeline of $395.6 million at the end of the first quarter of 2020. Mortgage servicing fees increased $2.0 million in the quarter ended March 31, 2021, principally due to an impairment of mortgage servicing rights of $1.6 in the quarter ended March 31, 2020.

Non-interest expenses decreased $976,000, or 7.6%, to $12.0 million in the quarter ended March 31, 2021 from $12.9 million in the quarter ended December 30, 2020. The decrease was due to a decrease in occupancy and equipment costs of $406,000, or 35.3%, and a provision for unfunded commitments of $584,000 taken in the fourth quarter of 2020. Occupancy and equipment expenses decreased $406,000 in the quarter ended March 31, 2021 from the prior quarter due to the closing of residential lending offices in the fourth quarter of 2020, which resulted in a one-time charge of $294,000. Other non-interest expenses comprising professional fees, marketing, FDIC insurance and other non-interest expenses decreased by $285,000, or 9.3% in the quarter ended March 31, 2021 versus the prior quarter, as the fourth quarter of 2020 included a $584,000 provision for unfunded loan commitments.

Non-interest expenses increased $992,000 to $12.0 million in the quarter ended March 31, 2021 from $11.0 million in the quarter ended March 31, 2020. The increase is principally due to an increase in salaries and employee benefits of $311,000, primarily attributed to higher commissions and incentives associated with increased residential loan production, partially offset by a $1.4 million charge related to the retirement of senior executives in the first quarter of 2020. In addition, other non-interest expenses increased $463,000 from the prior year quarter due to elevated loan production costs. Occupancy and equipment expenses increased $46,000 in the quarter ended March 31, 2021 over the prior year period due to seasonal increases in snowplowing expenses. Other non-interest expenses comprising professional fees, marketing, FDIC insurance and other non-interest expenses increased by $635,000, or 29.7% in the quarter ended March 31, 2021 versus the prior year period, due to elevated mortgage loan production costs.

Balance Sheet

At March 31, 2021, total assets amounted to $738.2 million, compared to $721.1 million at December 31, 2020, an increase of $17.1 million, or 2.4%. A $41.2 million increase in cash and cash equivalents from the prior quarter was partially offset by a $25.9 million decrease in loans held for sale. Net loan growth of $8.4 million, or 1.7%, was driven by SBA PPP loan originations of $10.2 million. SBA PPP loans totaled $14.7 million at the end of the first quarter of 2021. Non-brokered deposits increased by $31.5 million, or 6.3%, to $528.0 million from $496.6 million in the prior quarter.

Total assets at March 31, 2021 increased $85.3 million, or 13.1% from $652.9 million at March 31, 2020. Contributing to asset growth was a $34.4 million increase in loans held for sale to $93.2 million at March 31, 2021 from $58.8 million at March 31, 2020. Cash and cash equivalents increased by $33.7 million, or 159.0%, to $55.0 million at March 31, 2021 from $21.2 million at March 31, 2020, mainly as a result of strong core growth in deposits and higher loan sales at quarter end. Net loans increased by $15.8 million, or 3.3%, to $492.0 million at March 31, 2021 from $476.2 million at March 31, 2020, mainly as a result commercial real estate growth of $20.3 million, or 16.1%, as we focus on diversifying our loan mix and reducing our exposure to long-term fixed rate 1-4 family residential loans. Another factor for net loan growth was an increase in commercial and industrial loans of $14.8 million, or 164.3%, driven by SBA PPP lending.

The increase in total assets at March 31, 2021 from the prior quarter was funded by deposit growth. Non-brokered deposits totaled $528.0 million at March 31, 2021, increasing by $31.5 million, or 6.3%, during the quarter from $496.6 million at December 31, 2020. Driving the growth in non-brokered deposits were customers' receipt of government stimulus and our focus on deposit gathering. Federal Home Loan Bank of Boston ("FHLBB") and Federal Reserve Bank advances decreased by $13.3 million to $60.0 million at March 31, 2021, from $73.3 million at December 31, 2020, primarily as a result of the full repayment of Federal Reserve Bank advances.

The increase in total assets from the prior year quarter was also funded by continued deposit growth. Non-brokered deposits totaled $528.0 million at March 31, 2021, increasing by $109.0 million, or 26.0%, during the quarter ended March 31, 2021 from $419.1 million at March 31, 2020. Driving the growth in non-brokered deposits was customers' receipt of government stimulus and our focus on deposit gathering. Brokered deposits decreased by $53.7 million to $32.2 million at March 31, 2021, from $86.0 million at March 31, 2020. FHLBB advances increased by $8.0 million to $60.0 million at March 31, 2021, from $52.0 million at March 31, 2020.

Total stockholders' equity was $100.9 million at March 31, 2021 compared to $99.8 million at December 31, 2020. The increase of $1.0 million reflects net income during the first quarter of $4.1 million, partially offset by share repurchases of $2.7 million and a decrease in the fair value of available-for-sale equity securities, net of taxes, of $794,000.

Total stockholders' equity was $100.9 million at March 31, 2021 compared to $79.0 million at March 31, 2020. The increase of $21.9 million relates mainly to net income from the previous twelve months of $24.9 million, partially offset by share repurchases of $3.2 million and a decrease in the fair value of available-for-sale securities, net of taxes, of $927,000. In addition, equity adjustments related to equity-based compensation amounted to an increase of $1.1 million.

COVID-19 Impact

In response to the impact of the COVID-19 pandemic on our customers and our business, the Company implemented a series of measures through the date of this release, including participation in the PPP, for which we funded $25.6 million of SBA PPP Loans through March 31, 2021, and granting payment deferrals for residential mortgage, home equity and certain commercial borrowers who were current in their payments at the time the deferral was requested. Depending on the circumstances of the borrowers, the forbearance calls for a reduced or full deferral of payment. Please refer to the Loan Payment Deferrals and COVID-19 Most Impacted Sections 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 Stoughton, 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 our 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 Paycheck Protection Program 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 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 2021 vs.			Mar 2021 vs.
	2021			2020			2020			Dec 2020			Mar 2020
Assets
Cash and cash equivalents	$	54,950		$	13,774		$	21,245			298.9	%		158.6	%
Certificates of deposit		-			-			490		- %				(100.0	)%
Securities available for sale, at fair value		54,148			55,366			55,465			(2.2	)%		(2.4	)%
Loans held for sale, at fair value		93,176			119,112			58,781			(21.8	)%		58.5	%
Loans:
1-4 family residential		239,190			235,648			250,006			1.5	%		(4.3	)%
Home equity		49,073			48,166			43,503			1.9	%		12.8	%
Commercial real estate		146,930			143,893			126,608			2.1	%		16.1	%
Construction		29,975			31,050			35,327			(3.5	)%		(15.1	)%
Total real estate loans		465,168			458,757			455,444			1.4	%		2.1	%
Commercial and industrial		23,869			20,259			9,030			17.8	%		164.3	%
Consumer		8,724			10,289			15,344			(15.2	)%		(43.1	)%
Total loans		497,761			489,305			479,818			1.7	%		3.7	%
Allowance for loan losses		(6,563	)		(6,784	)		(4,996	)		(3.3	)%		31.4	%
Net deferred loan costs and fees, and purchase premiums		785			1,123			1,404			(30.1	)%		(44.1	)%
Loans, net		491,983			483,644			476,226			1.7	%		3.3	%
Federal Home Loan Bank of Boston stock, at cost		3,576			3,576			2,873			0.0	%		24.5	%
Accrued interest receivable		1,501			1,562			1,397			(3.9	)%		7.4	%
Mortgage servicing rights, net		14,744			12,377			7,488			19.1	%		96.9	%
Premises and equipment, net		4,709			4,781			5,667			(1.5	)%		(16.9	)%
Bank-owned life insurance		8,662			8,622			8,486			0.5	%		2.1	%
Foreclosed real estate, net		132			132			132			0.0	%		0.0	%
Other assets		10,607			18,126			14,636			(41.5	)%		(27.5	)%
Total assets	$	738,188		$	721,072		$	652,886			2.4	%		13.1	%

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	118,623		$	96,731		$	65,017			22.6	%		82.4	%
Savings accounts		192,712			185,481			144,980			3.9	%		32.9	%
NOW accounts		62,772			53,530			39,598			17.3	%		58.5	%
Money market accounts		78,236			77,393			67,220			1.1	%		16.4	%
Term certificates		75,690			83,444			102,253			(9.3	)%		(26.0	)%
Brokered		32,225			31,728			85,951			1.6	%		(62.5	)%
Total deposits		560,258			528,307			505,019			6.0	%		10.9	%
Federal Reserve Bank advances		-			11,431			-			(100.0	)%	- %
Federal Home Loan Bank of Boston advances		60,024			61,895			52,013			(3.0	)%		15.4	%
Mortgagors' escrow accounts		1,924			2,338			2,074			(17.7	)%		(7.2	)%
Post-employment benefit obligations		2,235			2,382			2,329			(6.2	)%		(4.0	)%
Other liabilities		12,888			14,900			12,495			(13.5	)%		3.1	%
Total liabilities		637,329			621,253			573,930			2.6	%		11.0	%
Stockholders' Equity:
Common stock		53			54			55			(1.9	)%		(3.6	)%
Additional paid-in capital		48,613			50,937			50,832			(4.6	)%		(4.4	)%
Retained earnings		55,801			51,689			30,939			8.0	%		80.4	%
ESOP-Unearned compensation		(3,709	)		(3,756	)		(3,897	)		(1.3	)%		(4.8	)%
Accumulated other comprehensive income, net of tax		101			895			1,027			(88.7	)%		(90.2	)%
Total stockholders' equity		100,859			99,819			78,956			1.0	%		27.7	%
Total liabilities and stockholders' equity	$	738,188		$	721,072		$	652,886			2.4	%		13.1	%

Randolph Bancorp, Inc.

Consolidated Balance Sheet Trend

(Dollars in thousands)

(Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
		2021			2020			2020			2020			2020
Assets
Cash and cash equivalents	$	54,950		$	13,774		$	49,091		$	76,003		$	21,245
Certificates of deposit		-			-			-			490			490
Securities available for sale, at fair value		54,148			55,366			55,551			54,462			55,465
Loans held for sale, at fair value		93,176			119,112			87,805			61,673			58,781
Loans:
1-4 family residential		239,190			235,648			235,955			246,236			250,006
Home equity		49,073			48,166			48,097			43,493			43,503
Commercial real estate		146,930			143,893			141,862			134,750			126,608
Construction		29,975			31,050			32,064			35,181			35,327
Total real estate loans		465,168			458,757			457,978			459,660			455,444
Commercial and industrial		23,869			20,259			20,388			22,940			9,030
Consumer		8,724			10,289			11,696			13,435			15,344
Total loans		497,761			489,305			490,062			496,035			479,818
Allowance for loan losses		(6,563	)		(6,784	)		(6,597	)		(6,059	)		(4,996	)
Net deferred loan costs and fees, and purchase premiums		785			1,123			1,083			962			1,404
Loans, net		491,983			483,644			484,548			490,938			476,226
Federal Home Loan Bank of Boston stock, at cost		3,576			3,576			3,797			4,072			2,873
Accrued interest receivable		1,501			1,562			1,654			1,760			1,397
Mortgage servicing rights, net		14,744			12,377			10,944			8,094			7,488
Premises and equipment, net		4,709			4,781			5,133			5,313			5,667
Bank-owned life insurance		8,662			8,622			8,577			8,532			8,486
Foreclosed real estate, net		132			132			132			132			132
Other assets		10,607			18,126			15,736			12,572			14,636
Total assets	$	738,188		$	721,072		$	722,968		$	724,041		$	652,886

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	118,623		$	96,731		$	93,352		$	89,014		$	65,017
Savings accounts		192,712			185,481			175,316			165,234			144,980
NOW accounts		62,772			53,530			47,032			48,014			39,598
Money market accounts		78,236			77,393			74,874			75,827			67,220
Term certificates		75,690			83,444			94,438			104,905			102,253
Brokered		32,225			31,728			37,273			55,972			85,951
Total deposits		560,258			528,307			522,285			538,966			505,019
Federal Reserve Bank advances		-			11,431			15,318			15,010			-
Federal Home Loan Bank of Boston advances		60,024			61,895			66,903			71,944			52,013
Mortgagors' escrow accounts		1,924			2,338			1,959			1,824			2,074
Post-employment benefit obligations		2,235			2,382			2,289			2,319			2,329
Other liabilities		12,888			14,900			19,276			9,449			12,495
Total liabilities		637,329			621,253			628,030			639,512			573,930
Stockholders' Equity:
Common stock		53			54			55			55			55
Additional paid-in capital		48,613			50,937			51,201			51,013			50,832
Retained earnings		55,801			51,689			46,415			36,130			30,939
ESOP-Unearned compensation		(3,709	)		(3,756	)		(3,803	)		(3,850	)		(3,897	)
Accumulated other comprehensive income, net of tax		101			895			1,070			1,181			1,027
Total stockholders' equity		100,859			99,819			94,938			84,529			78,956
Total liabilities and stockholders' equity	$	738,188		$	721,072		$	722,968		$	724,041		$	652,886

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 2021 vs.			Mar 2021 vs.
	2021			2020		2020			Dec 2020			Mar 2020
Interest and dividend income:
Loans	$	5,508		$	5,532	$	5,620			(0.4	)%		(2.0	)%
Other interest and dividend income		253			296		433			(14.5	)%		(41.6	)%
Total interest and dividend income		5,761			5,828		6,053			(1.1	)%		(4.8	)%

Interest expense		670			788		1,628			(15.0	)%		(58.8	)%

Net interest income		5,091			5,040		4,425			1.0	%		15.1	%
Provision (credit) for loan losses		(213	)		215		724			(199.1	)%		(129.4	)%
Net interest income after provision (credit) for loan losses		5,304			4,825		3,701			9.9	%		43.3	%

Non-interest income:
Customer service fees		367			381		306			(3.7	)%		19.9	%
Gain on loan origination and sale activities, net		10,993			14,620		7,144			(24.8	)%		53.9	%
Mortgage servicing fees, net		779			275		(1,254	)		183.3	%		(162.1	)%
Other		284			311		255			(8.7	)%		11.4	%
Total non-interest income		12,423			15,587		6,451			(20.3	)%		92.6	%
Non-interest expenses:
Salaries and employee benefits		8,437			8,722		8,126			(3.3	)%		3.8	%
Occupancy and equipment		744			1,150		698			(35.3	)%		6.6	%
Professional fees		561			389		405			44.2	%		38.5	%
Marketing		170			231		152			(26.4	)%		11.8	%
FDIC insurance		54			51		56			5.9	%		(3.6	)%
Other non-interest expenses		1,985			2,384		1,522			(16.7	)%		30.4	%
Total non-interest expenses		11,951			12,927		10,959			(7.6	)%		9.1	%
Income (loss) before income taxes		5,776			7,485		(807	)		(22.8	)%		(815.7	)%
Income tax expense		1,664			2,211		11			(24.7	)%		15027.3	%
Net income (loss)	$	4,112		$	5,274	$	(818	)		(22.0	)%		(602.7	)%

Net income (loss) per share:
Basic	$	0.81		$	1.03	$	(0.16	)
Diluted	$	0.78		$	1.01	$	(0.16	)

Weighted average shares outstanding:
Basic		5,056,165			5,135,069		5,158,294
Diluted		5,254,907			5,244,414		5,158,294

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,
	2021			2020		2020		2020			2020
Interest and dividend income:
Loans	$	5,508		$	5,532	$	5,337	$	5,723		$	5,620
Other interest and dividend income		253			296		311		336			433
Total interest and dividend income		5,761			5,828		5,648		6,059			6,053

Interest expense		670			788		979		1,326			1,628

Net interest income		5,091			5,040		4,669		4,733			4,425
Provision (credit) for loan losses		(213	)		215		546		1,068			724
Net interest income after provision (credit) for loan losses		5,304			4,825		4,123		3,665			3,701

Non-interest income:
Customer service fees		367			381		330		266			306
Gain on loan origination and sale activities, net		10,993			14,620		18,102		14,370			7,144
Mortgage servicing fees, net		779			275		1,180		(1,354	)		(1,254	)
Other		284			311		262		217			255
Total non-interest income		12,423			15,587		19,874		13,499			6,451
Non-interest expenses:
Salaries and employee benefits		8,437			8,722		7,911		8,402			8,126
Occupancy and equipment		744			1,150		859		838			698
Professional fees		561			389		253		230			405
Marketing		170			231		154		152			152
FDIC insurance		54			51		41		39			56
Other non-interest expenses		1,985			2,384		1,833		1,718			1,522
Total non-interest expenses		11,951			12,927		11,051		11,379			10,959
Income (loss) before income taxes		5,776			7,485		12,946		5,785			(807	)
Income tax expense		1,664			2,211		2,661		594			11
Net income (loss)	$	4,112		$	5,274	$	10,285	$	5,191		$	(818	)

Net income (loss) per share:
Basic	$	0.81		$	1.03	$	2.01	$	1.02		$	(0.16	)
Diluted	$	0.78		$	1.01	$	2.01	$	1.02		$	(0.16	)

Weighted average shares outstanding:
Basic		5,056,165			5,135,069		5,120,367		5,092,490			5,158,294
Diluted		5,254,907			5,244,414		5,120,367		5,092,490			5,158,294

Randolph Bancorp, Inc.

Average Balances/Yields

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31, 2021								December 31, 2020								March 31, 2020
	Average			Interest		Average			Average			Interest		Average			Average			Interest		Average
	Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/
(Dollars in thousands)	Balance			Paid		Rate			Balance			Paid		Rate			Balance			Paid		Rate
Interest-earning assets:
Loans ⁽¹⁾	$	594,021		$	5,508		3.71	%	$	580,002		$	5,532		3.82	%	$	531,141		$	5,620		4.23	%
Investment securities^{(2) (3)}		57,818			247		1.71	%		58,329			290		1.99	%		58,799			379		2.58	%
Interest-earning deposits		35,492			7		0.08	%		30,573			8		0.10	%		18,458			56		1.21	%
Total interest-earning assets		687,331			5,762		3.35	%		668,904			5,830		3.49	%		608,398			6,055		3.98	%
Noninterest-earning assets		42,045								45,015								31,774
Total assets	$	729,376							$	713,919							$	640,172
Interest-bearing liabilities:
Savings accounts		190,313			98		0.21	%		181,653			142		0.31	%		134,843			284		0.84	%
NOW accounts		69,511			48		0.28	%		59,005			43		0.29	%		39,049			51		0.52	%
Money market accounts		75,994			54		0.28	%		75,106			62		0.33	%		78,394			197		1.01	%
Term certificates		96,978			238		0.98	%		112,260			293		1.04	%		188,654			893		1.89	%
Total interest-bearing deposits		432,796			438		0.40	%		428,024			540		0.50	%		440,940			1,425		1.29	%
FHLBB and FRB advances		70,857			232		1.31	%		77,584			247		1.27	%		47,102			203		1.72	%
Total interest-bearing liabilities		503,653			670		0.53	%		505,608			787		0.62	%		488,042			1,628		1.33	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		106,929								94,540								62,718
Other noninterest-bearing liabilities		15,375								13,539								9,549
Total liabilities		625,957								613,687								560,309
Total stockholders' equity		103,419								100,232								79,863
Total liabilities and stockholders' equity	$	729,376							$	713,919							$	640,172
Net interest income				$	5,092							$	5,043							$	4,427
Interest rate spread⁽⁴⁾							2.82	%							2.87	%							2.65	%
Net interest-earning assets⁽⁵⁾	$	183,678							$	163,296							$	120,356
Net interest margin⁽⁶⁾							2.96	%							3.02	%							2.91	%

Ratio of interest-earning assets to interest-bearing liabilities		136.47	%							132.30	%							124.66	%

(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 $2,000 for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

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

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

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

Randolph Bancorp, Inc.

Average Balances Trend

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2021		2020		2020		2020		2020
Interest-earning assets:
Total loans	$	594,021	$	580,002	$	559,370	$	576,964	$	531,141
Investment securities		57,818		58,329		57,211		58,119		58,799
Interest-earning deposits		35,492		30,573		48,949		22,918		18,458
Total interest-earning assets		687,331		668,904		665,530		658,001		608,398
Non-interest earning assets		42,045		45,015		41,037		40,156		31,774
Total assets	$	729,376	$	713,919	$	706,567	$	698,157	$	640,172

Interest-bearing liabilities:
Savings accounts	$	190,313	$	181,653	$	170,762	$	158,427	$	134,843
NOW accounts		69,511		59,005		57,646		46,593		39,049
Money market accounts		75,994		75,106		72,369		71,396		78,394
Term certificates		96,978		112,260		131,053		159,224		188,654
Total interest-bearing deposits		432,796		428,024		431,830		435,640		440,940
FHLBB and FRB advances		70,857		77,584		82,639		79,133		47,102
Total interest-bearing liabilities		503,653		505,608		514,469		514,773		488,042
Noninterest-bearing liabilities:
Noninterest-bearing deposits		106,929		94,540		88,394		77,947		62,718
Other noninterest-bearing liabilities		15,375		13,539		12,724		22,893		9,549
Total liabilities		625,957		613,687		615,587		615,613		560,309
Total stockholders' equity		103,419		100,232		90,980		82,544		79,863
Total liabilities and stockholders' equity	$	729,376	$	713,919	$	706,567	$	698,157	$	640,172

Randolph Bancorp, Inc.

Average Balances Trend

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
Interest-earning assets:
Total loans		3.71	%		3.82	%		3.82	%		3.97	%		4.23	%
Investment securities		1.71	%		1.99	%		2.13	%		2.28	%		2.58	%
Interest-earning deposits		0.08	%		0.10	%		0.06	%		0.09	%		1.21	%
Total interest-earning assets		3.35	%		3.49	%		3.40	%		3.68	%		3.98	%

Interest-bearing liabilities:
Savings accounts		0.21	%		0.31	%		0.40	%		0.59	%		0.84	%
NOW accounts		0.28	%		0.29	%		0.28	%		0.43	%		0.52	%
Money market accounts		0.28	%		0.33	%		0.41	%		0.68	%		1.01	%
Term certificates		0.98	%		1.04	%		1.35	%		1.70	%		1.89	%
Total interest-bearing deposits		0.40	%		0.50	%		0.68	%		0.99	%		1.29	%
FHLBB and FRB advances		1.31	%		1.27	%		1.21	%		1.23	%		1.72	%
Total interest-bearing liabilities		0.53	%		0.62	%		0.76	%		1.03	%		1.33	%

Interest rate spread		2.82	%		2.87	%		2.64	%		2.65	%		2.65	%
Net interest rate margin		2.96	%		3.02	%		2.81	%		2.88	%		2.91	%
Ratio of interest-earning assets to interest-bearing liabilities		136.47	%		132.30	%		129.36	%		127.82	%		124.66	%

Randolph Bancorp, Inc.

Rate/Volume Analysis

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31, 2021 vs. December 31, 2020
	Increase (Decrease)						Total
	Due to Changes in						Increase
	Volume			Rate			(Decrease)
Interest-earning assets:
Loans	$	135		$	(159	)	$	(24	)
Investment securities		(3	)		(40	)		(43	)
Interest-earning deposits		1			(1	)		-
Total interest-earning assets		133			(200	)		(67	)
Interest-bearing liabilities:
Savings accounts		6			(50	)		(44	)
NOW accounts		7			(2	)		5
Money market accounts		1			(9	)		(8	)
Term certificates		(39	)		(16	)		(55	)
Total interest-bearing deposits		(25	)		(77	)		(102	)
FHLBB and FRB advances		(22	)		6			(16	)
Total interest-bearing liabilities		(47	)		(71	)		(118	)
Change in net interest income	$	180		$	(129	)	$	51

	Three Months Ended
	March 31, 2021 vs. 2020
	Increase (Decrease)						Total
	Due to Changes in						Increase
	Volume			Rate			(Decrease)
Interest-earning assets:
Loans	$	623		$	(735	)	$	(112	)
Investment securities		(6	)		(126	)		(132	)
Interest-earning deposits		27			(75	)		(48	)
Total interest-earning assets		644			(936	)		(292	)
Interest-bearing liabilities:
Savings accounts		85			(271	)		(186	)
NOW accounts		28			(31	)		(3	)
Money market accounts		(6	)		(137	)		(143	)
Term certificates		(329	)		(326	)		(655	)
Total interest-bearing deposits		(222	)		(765	)		(987	)
FHLBB and FRB advances		85			(56	)		29
Total interest-bearing liabilities		(137	)		(821	)		(958	)
Change in net interest income	$	781		$	(115	)	$	666

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.

Segment Information

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended December 31, 2020
	Envision Bank			Envision Mortgage		Consolidated Total
Net interest income	$	4,265		$	775	$	5,040
Provision for loan losses		215			-		215
Net interest income after provision for loan losses		4,050			775		4,825

Non-interest income:
Customer service fees		353			28		381
Gain on loan origination and sale activities, net ⁽¹⁾		-			15,062		15,062
Mortgage servicing fees, net		(100	)		375		275
Other		147			164		311
Total non-interest income		400			15,629		16,029

Non-interest expenses:
Salaries and employee benefits		2,178			6,544		8,722
Occupancy and equipment		465			685		1,150
Other non-interest expenses		1,942			1,113		3,055
Total non-interest expenses		4,585			8,342		12,927

Income (loss) before income taxes and elimination of inter-segment profit	$	(135	)	$	8,062		7,927

Elimination of inter-segment profit							(442	)
Income before income taxes							7,485

Income tax expense							2,211
Net income						$	5,274

(1) Before elimination of inter-segment profit.

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended March 31, 2020
	Envision Bank			Envision Mortgage			Consolidated Total
Net interest income	$	3,994		$	431		$	4,425
Provision for loan losses		724			-			724
Net interest income after credit for loan losses		3,270			431			3,701

Non-interest income:
Customer service fees		273			33			306
Gain on loan origination and sale activities, net ⁽¹⁾		-			7,472			7,472
Mortgage servicing fees, net		(87	)		(1,167	)		(1,254	)
Other		140			115			255
Total non-interest income		326			6,453			6,779

Non-interest expenses:
Salaries and employee benefits		3,098			5,028			8,126
Occupancy and equipment		404			294			698
Other non-interest expenses		1,145			990			2,135
Total non-interest expenses		4,647			6,312			10,959

Income (loss) before income taxes and elimination of inter-segment profit	$	(1,051	)	$	572			(479	)

Elimination of inter-segment profit								(328	)
Loss before income taxes								(807	)

Income tax expense								11
Net loss							$	(818	)

(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)

(Unaudited)

	Quarter Ended
	March 31, 2021
	Income Before Taxes			Provision for Income Taxes		Net Income			Earnings per Common Share (diluted)
GAAP basis	$	5,776		$	1,664	$	4,112		$	0.78
Non-interest expense adjustments:
Accrued severance expenses		109			31		78			0.01
Non-GAAP basis	$	5,885		$	1,695	$	4,190		$	0.79

	Quarter Ended
	December 31, 2020
	Income Before Taxes			Provision for Income Taxes		Net Income			Earnings per Common Share (diluted)
GAAP basis	$	7,485		$	2,211	$	5,274		$	1.01
Non-interest expense adjustments:
Residential lending office closure		294			63		231			0.04
COVID-19 related expenses		69			15		54			0.01
Non-GAAP basis	$	7,848		$	2,289	$	5,559		$	1.06

	Quarter Ended
	September 30, 2020
	Income Before Taxes			Provision for Income Taxes		Net Income			Earnings per Common Share (diluted)
GAAP basis	$	12,946		$	2,661	$	10,285		$	2.01
Non-interest expense adjustments:
COVID-19 related expenses		22			4		18			-
Non-GAAP basis	$	12,968		$	2,665	$	10,303		$	2.01

	Quarter Ended
	June 30, 2020
	Income Before Taxes			Provision for Income Taxes		Net Income			Earnings per Common Share (diluted)
GAAP basis	$	5,785		$	594	$	5,191		$	1.02
Non-interest expense adjustments:
COVID-19 related expenses		189			-		189			0.04
Non-GAAP basis	$	5,974		$	594	$	5,380		$	1.06

	Quarter Ended
	March 31, 2020
	Income (Loss) Before Taxes			Provision for Income Taxes		Net Income (Loss)			Earnings (Loss) per Common Share (diluted)
GAAP basis	$	(807	)	$	11	$	(818	)	$	(0.16	)
Non-interest expense adjustments:
Retirement salary and benefits compensation		692		$	-		692			0.13
Accelerated vesting of stock-based compensation		683		$	-		683			0.13
COVID-19 related expenses		18		$	-		18			-
Non-GAAP basis	$	586		$	11	$	575		$	0.10

Randolph Bancorp, Inc.

Selected Financial Highlights

(Unaudited)

	At or for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2021			2020			2020			2020			2020
Return on average assets: ^{(1, 5)}
GAAP		2.26	%		2.95	%		5.82	%		2.97	%		(0.51	%)
Non-GAAP ⁽²⁾		2.30	%		3.11	%		5.83	%		3.08	%		0.36	%

Return on average equity: ^{(1, 6)}
GAAP		15.90	%		21.05	%		45.22	%		25.16	%		(4.10	%)
Non-GAAP ⁽²⁾		16.21	%		22.18	%		45.30	%		26.07	%		2.88	%

Net interest margin		2.96	%		3.02	%		2.81	%		2.88	%		2.91	%

Non-interest income to total income:
GAAP		70.93	%		75.57	%		80.98	%		74.04	%		59.31	%

Profit percentage ⁽⁹⁾
GAAP		31.76	%		37.33	%		54.97	%		37.59	%		(0.76	%)
Non-GAAP ⁽²⁾		32.39	%		39.09	%		55.06	%		38.62	%		12.04	%

Efficiency ratio: ⁽⁷⁾
GAAP		68.24	%		62.67	%		45.03	%		62.41	%		100.76	%
Non-GAAP ⁽²⁾		67.61	%		60.91	%		44.94	%		61.38	%		87.96	%

Tier 1 capital to average assets ⁽³⁾		13.81	%		13.85	%		13.28	%		11.93	%		12.17	%

Non-performing assets as a percentage of total assets ⁽⁴⁾		1.14	%		1.01	%		1.38	%		0.47	%		0.52	%

Allowance for loan losses as a percentage of total loans ⁽⁴⁾		1.32	%		1.39	%		1.35	%		1.22	%		1.04	%
Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans ⁽⁴⁾		1.36	%		1.41	%		1.39	%		1.26	%		1.04	%

Allowance for loan losses as a percentage of non-performing assets		78.99	%		94.58	%		67.21	%		179.31	%		146.64	%
Allowance for loan losses as a percentage of non-performing loans		77.75	%		92.87	%		66.31	%		186.60	%		152.55	%

Tangible book value per share ⁽⁸⁾	$	18.80		$	18.16		$	17.18		$	15.43		$	14.44
Outstanding shares		5,364,240			5,495,514			5,524,390			5,479,884			5,466,344

(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 $31,000, $33,000, $36,000, $38,000, and $41,000 at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively, divided by outstanding shares at period end.

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

Randolph Bancorp, Inc.

COVID-19 Supplemental Disclosure

(Unaudited)

Loan Payment Deferrals

	As of March 31, 2021
	Commercial loans			Residential and consumer loans			Residential loans serviced for others

	(Dollars in thousands)
Balance outstanding	$	182,277		$	315,485		$	1,940,443

COVID-19 related loan payment deferrals: ⁽¹⁾
Loans in COVID-19-related loan payment deferral	$	6,241		$	4,777		$	11,544
Loans in deferral as a percentage of category loans		3.4	%		1.5	%		0.6	%
Loans with suspended payment	$	6,241		$	4,543		$	4,657
Loans with reduced payment		-			234			6,887

Loans which obtained a COVID-19-related payment deferral but
have since resumed payment	$	31,954		$	15,602		$	54,450
Loans reinstated (borrower paid any unpaid principal and interest)		-			2,253			6,353
Loans on a repayment plan		-			-			1,354
Loans which resumed payment but deferred principal and/or
interest payments to maturity⁽²⁾		26,197			8,713			36,811
Loans which were paid off completely		5,757			4,636			9,932

(1) Includes commercial loans that have been approved for loan payment deferral but for which documentation is closing or pending.

(2) Includes commercial loan for which maturity was extended.

Randolph Bancorp, Inc.

COVID-19 Supplemental Disclosure

(Unaudited)

COVID-19 Highly Impacted Sectors

	As of March 31, 2021
	Exposure Balance												Exposure by Risk Weighting
																	Balance
				Real			Commercial										with
				Estate			&										Deferred
Industry ⁽¹⁾	Total			Secured			Industrial			Construction			Pass		Criticized		Payments

	(Dollars in thousands)
Group home/care facility	$	1,079		$	1,079		$	-		$	-		$	1,079	$	-	$	-
Hotels/hospitality		9,635			9,566			69			-			69		9,566		3,543
Restaurants/food service		2,713			1,554			1,159			-			2,713		-		-
Retail/shopping center		21,887			17,211			-			4,675			20,261		1,626		1,006
Other sectors ⁽²⁾		11,385			10,972			113			300			9,383		2,002		1,692
Total loans in COVID-19 impacted sectors	$	46,698		$	40,382		$	1,341		$	4,975		$	33,505	$	13,194	$	6,241
Percentage of commercial loans outstanding	25.6		%	27.5		%	5.6		%	43.3		%
Commercial loans outstanding	$	182,277		$	146,930		$	23,869		$	11,478
Loan to value secured by real estate ⁽³⁾				47.5		%				66.9		%

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

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

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

For More Information, Contact:

William M. Parent, President and Chief

Executive Officer (617-925-1955)

Randolph Bancorp, Inc. Announces First Quarter 2021 Financial Results