QUINCY, Mass., July 27, 2021 (GLOBE NEWSWIRE) -- Randolph Bancorp, Inc. (the "Company") (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the "Bank"), today announced net income of $1.6 million, or $0.32 per basic share and $0.31 per diluted share, for the three months ended June 30, 2021 compared to net income of $4.1 million, or $0.81 per basic and $0.78 per diluted share, for the three months ended March 31, 2021 and net income of $5.2 million, or $1.02 per basic and diluted share, for the three months ended June 30, 2020. Excluding one-time events of $145,000 in severance expenses, $71,000 in other outsourcing expenses, and $29,000 in losses on disposals of fixed assets, earnings were $1.8 million, or $0.34 per diluted share, for the three months ended June 30, 2021. Excluding one-time charges of $109,000 in severance expenses, earnings were $4.2 million, or $0.79 per diluted share, for the three months ended March 31, 2021. Excluding $189,000 of operating expenses related to addressing the COVID-19 pandemic, net income for the three months ended June 30, 2020 was $5.4 million, or $1.06 per diluted share.

For the six months ended June 30, 2021, net income was $5.7 million, or $1.10 per diluted share, compared to net income of $4.4 million, or $0.86 per diluted share, for the six months ended June 30, 2020. Net income on a non-GAAP basis, excluding certain nonrecurring items, was $5.9 million, or $1.15 per diluted share, for the six months ended June 30, 2021, compared to net income on a non-GAAP basis, excluding other certain nonrecurring items, of $6.0 million, or $1.17 per diluted share, for the six months ended June 30, 2020.

At June 30, 2021, total assets amounted to $744.1 million, compared to $738.2 million at March 31, 2021, an increase of $6.0 million, or 0.8%. Total loans increased by $48.6 million, or 9.8%, to $546.4 million at June 30, 2021 from $497.8 million at March 31, 2021, whereas loans held for sale decreased by $18.9 million to $74.3 million at June 30, 2021 from $93.2 million at March 31, 2021. Compared to June 30, 2020, total assets grew $20.1 million, or 2.8% from $724.0 million. The growth from the prior year period was driven by an increase in total loans of $50.4 million, or 10.2%, and an increase in loans held for sale of $12.6 million, partially offset by a decrease in cash and cash equivalents of $41.1 million.

William M. Parent, President and Chief Executive Officer, stated, "The second quarter was a positive quarter for our Company as we continued to see progress along our operating path. Strong loan growth, higher net interest margin, net interest income growth and improved credit metrics all reflect building momentum. The earnings decline from prior quarters reflects the normalization of the mortgage market as declining refinancing volume and compressed margins resulted in significantly lower overall originations and related income. We continue to work diligently to right size our operations to reflect market conditions but there will be a lagging period before our overall operating leverage initiatives are realized. We are pleased with the developments post re-opening of our local market and remain optimistic that we can continue to grow our business and generate recurring operating leverage."

Second Quarter Operating Results

Net interest income increased by $108,000, or 2.1%, to $5.2 million for the three months ended June 30, 2021 from $5.1 million for the three months ended March 31, 2021. This increase was primarily due to a decrease in the cost of term certificates and a decrease in the volume of Federal Home Loan Bank of Boston ("FHLBB") advances from the prior quarter. The average cost of certificates of deposit decreased by 31 basis points from the prior quarter, and the average balance of FHLBB advances decreased $19.4 million, or 27.3%, from the prior quarter. This contributed to a decrease of 9 basis points in the cost of interest-bearing liabilities in the second quarter of 2021. The improvement in the cost of funding was partially offset by a decrease in the average yield earned on interest-earning assets of 3 basis points, driven by declines in the volume of and yield on investment securities. Accordingly, the net interest margin increased by 4 basis points, to 3.00% in the second quarter from 2.96% in the first quarter.

Net interest income increased by $466,000, or 9.8%, to $5.2 million for the three months ended June 30, 2021 from $4.7 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin increased by 12 basis points to 3.00%, from 2.88%. The improvement reflects the shortening and downward pricing of deposit liabilities, which exceeded the decrease in rates earned on interest-earning assets in the lower interest rate environment. The cost of interest-bearing liabilities decreased by 59 basis points, whereas the yield on interest-earning assets declined by 36 basis points between periods.

The Company recognized a credit for loan losses of $27,000 for the quarter ended June 30, 2021, driven by changes in the qualitative factors related to the impact of the COVID-19 pandemic and the economic outlook used in the Company's calculation, along with improvements in credit quality trends, which were partially offset by total loan growth of $48.6 million from the prior quarter. The allowance for loan losses was 1.19%, 1.32% and 1.22% of total loans at June 30, 2021, March 31, 2021 and June 30, 2020, respectively, and was 101.9%, 79.0% and 179.3% of non-performing assets at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

Non-interest income decreased $5.6 million, or 45.1%, to $6.8 million for the quarter ended June 30, 2021 from $12.4 million in the quarter ended March 31, 2021, due to a decrease of $5.3 million in the net gain on loan origination and sale activities, in addition to a decrease in net mortgage servicing fees of $398,000. Sold mortgages totaled $342.8 million in the second quarter of 2021, compared to $503.3 million in the first quarter of 2021. The second quarter of 2021 ended with a mortgage pipeline of $139.7 million, compared to a pipeline of $239.5 million at the end of the first quarter of 2021, contributing to the decrease in the net gain on loan origination and sales activities. Mortgage servicing fees decreased $398,000, or 51.1%, to $381,000 for the second quarter of 2021 from $779,000 in the first quarter of 2021 due to a positive fair value adjustment of $421,000 in the first quarter of 2021, based on an increase in mortgage interest rates from the end of 2020, and an impairment charge of $65,000 taken in the second quarter of 2021, as mortgage interest rates declined slightly from the prior quarter.

Non-interest income decreased $6.7 million, or 49.5%, to $6.8 million for the quarter ended June 30, 2021 from $13.5 million for the quarter ended June 30, 2020, principally due to a decrease of $8.6 million in the net gain on loan origination and sale activities, partially offset by an increase of $1.7 million in net mortgage servicing fees. Sold mortgage loans totaled $342.8 million in the second quarter of 2021, compared to sold mortgage loans of $442.9 million during the second quarter of 2020. The second quarter of 2021 ended with a mortgage pipeline of $139.7 million, compared to a pipeline of $329.3 million at the end of the second quarter of 2020. Mortgage servicing fees increased $1.7 million in the quarter ended June 30, 2021, principally due to an impairment of mortgage servicing rights of $1.5 million in the quarter ended June 30, 2020.

Non-interest expenses decreased $1.3 million, or 11.1%, to $10.6 million in the quarter ended June 30, 2021 from $12.0 million in the quarter ended March 31, 2021. The decrease was due to a decrease in salaries and employee benefits expense of $1.1 million, or 13.4%, primarily driven by lower commissions paid on mortgage originations and a decrease in professional fees of $238,000 or 42.4% from the prior quarter. Occupancy and equipment expenses decreased $123,000 in the quarter ended June 30, 2021 from the prior quarter due to the closing of residential lending offices.

Non-interest expenses decreased $752,000 to $10.6 million in the quarter ended June 30, 2021 from $11.4 million in the quarter ended June 30, 2020. The decrease is principally due to a decrease in salaries and employee benefits of $1.1 million, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production, partially offset by a $401,000 increase in other non-interest expenses, which included an increase in the provision for unfunded commitments, driven by growth in unfunded commercial real estate and commercial construction commitments as of June 30, 2021.

The income tax benefit was $162,000 for the three months ended June 30, 2021 compared to income tax expense of $1.7 million and $594,000 for the three months ended March 31, 2021 and June 30, 2020, respectively. During the three months ended June 30, 2021, the Company reversed a valuation allowance on its charitable contribution carryforwards totaling $531,000. The remaining income tax expense for 2021 is expected to reflect an effective tax rate of 28.5%.

Year-to-Date Operating Results

Net interest income increased by $1.1 million, or 12.4%, for the six months ended June 30, 2021 compared to the same period in the prior year. The change reflects the shortening and downward pricing of deposit liabilities, exceeding the decreases in the rates earned on interest-earning assets because of the lower interest-rate environment. In addition, the composition of our deposit base improved as the average balance of savings and NOW accounts for the six months ended June 30, 2021 increased $44.7 million, or 30.5%, and $26.8 million, or 62.6%, respectively, from the six months ended June 30, 2020, while the average balance of our term certificates decreased $73.1 million, or 42.0%, from the prior year. The activity resulted in a 69 basis point decrease in the cost of interest-bearing liabilities.

The Company recognized a credit for loan losses of $240,000 for the six months ended June 30, 2021 compared to a provision of $1.8 million in the prior year period. At June 30, 2021, improvements to qualitative factors related to the impact of the COVID-19 pandemic, the economic outlook, and credit quality trends all helped to generate the credit for loan losses, partially offset by provisions for loan growth.

Non-interest income decreased $712,000, or 3.6%, to $19.2 million for the six months ended June 30, 2021 from $20.0 million in the six months ended June 30, 2020, principally due to a decrease of $4.8 million in the net gain on loan origination and sale activities. Mortgage loans sold were $846.0 million in the first half of 2021, compared to $657.9 million in the first half of 2020. Net gain on loan origination and sale activities decreased, while mortgage loans sold increased compared to the prior year quarter, as a result of both shrinking loan sale margins and the impact of a decreasing mortgage banking pipeline during the six months ended June 30, 2021 compared to an increasing mortgage banking pipeline during the six months ended June 30, 2020. Mortgage servicing fees increased $3.8 million in the first half of 2021 to $1.2 million from a loss of $2.6 million in the first half of 2020, due to positive fair value adjustments of $356,000 in the first half of 2021 and impairment charges of $3.1 million in the first half of 2020.

Non-interest expenses increased $240,000, or 1.1%, to $22.6 million for the six months ended June 30, 2021 from $22.3 million for the six months ended June 30, 2020. Non-interest expenses in the first half of 2020 included one-time charges of $1,375,000 related to the retirement of senior executives as well as $207,000 of COVID-19 pandemic-related expenses. Increases to non-interest expenses during the six months ended June 30, 2021 related to higher recurring salaries and benefits and other non-interest expenses related to increased mortgage loan production, professional fees associated with the outsourcing of the Company's residential loan servicing functions, and an increase in the provision for unfunded commitments related to new commercial real estate and commercial construction commitments. Occupancy and equipment expenses decreased $172,000 in the first half of 2021 over the prior year period, partly as a result of decreased rental expenses due to the closures of residential lending offices, in addition to the absence of significant COVID-19 pandemic spending on cleaning and supplies.

Income tax expenses increased to $1.5 million for the six months ended June 30, 2021 from $605,000 for the six months ended June 30, 2020. The current period included a reversal of a charitable contribution carryforward valuation allowance, and the prior period included the utilization of net operating loss carryforwards.

Balance Sheet

At June 30, 2021, total assets amounted to $744.1 million, compared to $738.2 million at March 31, 2021, an increase of $6.0 million, or 0.8%. A $48.7 million increase in net loans from the prior quarter was partially offset by a $20.1 million decrease in cash and cash equivalents and an $18.9 million decrease in loans held for sale. Net loan growth of 9.9% was driven by 1-4 family residential real estate growth of $24.8 million and commercial real estate growth of $20.8 million. Deposits increased by $11.7 million in the quarter, including an increase of $6.1 million in non-interest bearing deposits. In addition, the Company reduced borrowings by $10 million in the quarter.

Total assets at June 30, 2021 increased $20.1 million, or 2.8% from $724.0 million at June 30, 2020. Contributing to asset growth was a $49.7 million increase in net loans to $540.7 million at June 30, 2021 from $490.9 million at June 30, 2020. Cash and cash equivalents decreased by $41.1 million, or 54.1%, to $34.9 million at June 30, 2021 from $76.0 million at June 30, 2020, mainly to fund growth in net loans as well as loans held for sale. Commercial real estate loans increased by $32.9 million, or 24.4%, as we focus on diversifying our loan mix. The increase in total assets from the prior year quarter was also funded by continued deposit growth. Retail deposits totaled $514.9 million at June 30, 2021, increasing by $31.9 million, or 6.6%, from $483.0 million at June 30, 2020. Driving the growth in retail deposits was customers' receipt of government stimulus and our focus on deposit gathering. FHLBB advances decreased by $21.9 million to $50.0 million at June 30, 2021, from $71.9 million at June 30, 2020. Federal Reserve Bank advances decreased by $15.0 million between periods.

Total stockholders' equity was $100.7 million at June 30, 2021 compared to $100.9 million at March 31, 2021. The decrease of $149,000 reflects share repurchases during the period of $2.2 million, partially offset by net income of $1.6 million and an increase in the fair value of available-for-sale securities, net of taxes, of $97,000.

Total stockholders' equity was $100.7 million at June 30, 2021 compared to $84.5 million at June 30, 2020. The increase of $16.2 million relates mainly to net income from the previous twelve months of $21.2 million, partially offset by share repurchases of $5.4 million and a decrease in the fair value of available-for-sale securities, net of taxes, of $879,000.

COVID-19 Impact

In response to the impact of the COVID-19 pandemic on our customers and our business, the Company implemented a series of measures through the date of this release, including participation in the Small Business Administration's ("SBA's") Paycheck Protection Program ("PPP"), for which we funded $26.2 million of SBA PPP Loans through June 30, 2021, and granting payment deferrals for residential mortgage, home equity and certain commercial borrowers who were current in their payments at the time the deferral was requested. Depending on the circumstances of the borrowers, the forbearance calls for a reduced or full deferral of payment. Please refer to the Loan Payment Deferrals and COVID-19 Highly Impacted Sectors for statistics on loan payment deferrals and the commercial loan sectors we believe could be exposed to the economic impact of the COVID-19 pandemic.

About Randolph Bancorp, Inc.

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

Forward Looking Statements

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the negative impacts and disruptions of the COVID-19 pandemic and the measures taken to contain its spread on the Company's employees, customers, business operations, credit quality, financial position, liquidity and results of operations; changes in the general business and economic conditions on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers' ability to service and repay the Company's loans; changes in consumer behavior due to changing political, business and economic conditions or legislative or regulatory initiatives; reputational risk relating to the Company's participation in the PPP and other pandemic-related legislative and regulatory initiatives and programs; turbulence in the capital and debt markets and the impact of such conditions on the Company's business activities; and the risk factors described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

Non-GAAP Financial Measures

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

Randolph Bancorp, Inc.

Consolidated Balance Sheet

(Dollars in thousands)

(Unaudited)

										% Change
	June 30,			March 31,			June 30,			Jun 2021 vs.		Jun 2021 vs.
		2021			2021			2020		Mar 2021		Jun 2020
Assets
Cash and cash equivalents	$	34,876		$	54,950		$	76,003		(36.5	)%		(54.1	)%
Certificates of deposit		-			-			490		-	%		(100.0	)%
Securities available for sale, at fair value		50,212			54,148			54,462		(7.3	)%		(7.8	)%
Loans held for sale, at fair value		74,277			93,176			61,673		(20.3	)%		20.4	%
Loans:
1-4 family residential		263,992			239,190			246,236		10.4	%		7.2	%
Home equity		50,555			49,073			43,493		3.0	%		16.2	%
Commercial real estate		167,691			146,930			134,750		14.1	%		24.4	%
Construction		29,140			29,975			35,181		(2.8	)%		(17.2	)%
Total real estate loans		511,378			465,168			459,660		9.9	%		11.3	%
Commercial and industrial		25,826			23,869			22,940		8.2	%		12.6	%
Consumer		9,194			8,724			13,435		5.4	%		(31.6	)%
Total loans		546,398			497,761			496,035		9.8	%		10.2	%
Allowance for loan losses		(6,523	)		(6,563	)		(6,059	)	(0.6	)%		7.7	%
Net deferred loan costs and fees, and purchase premiums		785			785			962		0.0	%		(18.4	)%
Loans, net		540,660			491,983			490,938		9.9	%		10.1	%
Federal Home Loan Bank of Boston stock, at cost		2,855			3,576			4,072		(20.2	)%		(29.9	)%
Accrued interest receivable		1,523			1,501			1,760		1.5	%		(13.5	)%
Mortgage servicing rights, net		15,375			14,744			8,094		4.3	%		90.0	%
Premises and equipment, net		5,115			4,709			5,313		8.6	%		(3.7	)%
Bank-owned life insurance		8,703			8,662			8,532		0.5	%		2.0	%
Foreclosed real estate, net		-			132			132		(100.0	)%		(100.0	)%
Other assets		10,546			10,607			12,572		(0.6	)%		(16.1	)%
Total assets	$	744,142		$	738,188		$	724,041		0.8	%		2.8	%

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	124,683		$	118,623		$	89,014		5.1	%		40.1	%
Savings accounts		190,584			192,712			165,234		(1.1	)%		15.3	%
NOW accounts		51,059			62,772			48,014		(18.7	)%		6.3	%
Money market accounts		73,967			78,236			75,827		(5.5	)%		(2.5	)%
Term certificates		74,631			75,690			104,905		(1.4	)%		(28.9	)%
Interest bearing brokered		57,059			32,225			55,972		77.1	%		1.9	%
Total deposits		571,983			560,258			538,966		2.1	%		6.1	%
Federal Reserve Bank advances		-			-			15,010		-	%		(100.0	)%
Federal Home Loan Bank of Boston advances		50,016			60,024			71,944		(16.7	)%		(30.5	)%
Mortgagors' escrow accounts		1,783			1,924			1,824		(7.3	)%		(2.2	)%
Post-employment benefit obligations		2,226			2,235			2,319		(0.4	)%		(4.0	)%
Other liabilities		17,424			12,888			9,449		35.2	%		84.4	%
Total liabilities		643,432			637,329			639,512		1.0	%		0.6	%
Stockholders' Equity:
Common stock		52			53			55		(1.9	)%		(5.5	)%
Additional paid-in capital		46,740			48,613			51,013		(3.9	)%		(8.4	)%
Retained earnings		57,378			55,801			36,130		2.8	%		58.8	%
ESOP-Unearned compensation		(3,662	)		(3,709	)		(3,850	)	(1.3	)%		(4.9	)%
Accumulated other comprehensive income, net of tax		202			101			1,181		100.0	%		(82.9	)%
Total stockholders' equity		100,710			100,859			84,529		(0.1	)%		19.1	%
Total liabilities and stockholders' equity	$	744,142		$	738,188		$	724,041		0.8	%		2.8	%

Randolph Bancorp, Inc.

Consolidated Balance Sheet Trend

(Dollars in thousands)

(Unaudited)

	June 30,			March 31,			December 31,			September 30,			June 30,
		2021			2021			2020			2020			2020
Assets
Cash and cash equivalents	$	34,876		$	54,950		$	13,774		$	49,091		$	76,003
Certificates of deposit		-			-			-			-			490
Securities available for sale, at fair value		50,212			54,148			55,366			55,551			54,462
Loans held for sale, at fair value		74,277			93,176			119,112			87,805			61,673
Loans:
1-4 family residential		263,992			239,190			235,648			235,955			246,236
Home equity		50,555			49,073			48,166			48,097			43,493
Commercial real estate		167,691			146,930			143,893			141,862			134,750
Construction		29,140			29,975			31,050			32,064			35,181
Total real estate loans		511,378			465,168			458,757			457,978			459,660
Commercial and industrial		25,826			23,869			20,259			20,388			22,940
Consumer		9,194			8,724			10,289			11,696			13,435
Total loans		546,398			497,761			489,305			490,062			496,035
Allowance for loan losses		(6,523	)		(6,563	)		(6,784	)		(6,597	)		(6,059	)
Net deferred loan costs and fees, and purchase premiums		785			785			1,123			1,083			962
Loans, net		540,660			491,983			483,644			484,548			490,938
Federal Home Loan Bank of Boston stock, at cost		2,855			3,576			3,576			3,797			4,072
Accrued interest receivable		1,523			1,501			1,562			1,654			1,760
Mortgage servicing rights, net		15,375			14,744			12,377			10,944			8,094
Premises and equipment, net		5,115			4,709			4,781			5,133			5,313
Bank-owned life insurance		8,703			8,662			8,622			8,577			8,532
Foreclosed real estate, net		-			132			132			132			132
Other assets		10,546			10,607			18,126			15,736			12,572
Total assets	$	744,142		$	738,188		$	721,072		$	722,968		$	724,041

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	124,683		$	118,623		$	96,731		$	93,352		$	89,014
Savings accounts		190,584			192,712			185,481			175,316			165,234
NOW accounts		51,059			62,772			53,530			47,032			48,014
Money market accounts		73,967			78,236			77,393			74,874			75,827
Term certificates		74,631			75,690			83,444			94,438			104,905
Interest bearing brokered		57,059			32,225			31,728			37,273			55,972
Total deposits		571,983			560,258			528,307			522,285			538,966
Federal Reserve Bank advances		-			-			11,431			15,318			15,010
Federal Home Loan Bank of Boston advances		50,016			60,024			61,895			66,903			71,944
Mortgagors' escrow accounts		1,783			1,924			2,338			1,959			1,824
Post-employment benefit obligations		2,226			2,235			2,382			2,289			2,319
Other liabilities		17,424			12,888			14,900			19,276			9,449
Total liabilities		643,432			637,329			621,253			628,030			639,512
Stockholders' Equity:
Common stock		52			53			54			55			55
Additional paid-in capital		46,740			48,613			50,937			51,201			51,013
Retained earnings		57,378			55,801			51,689			46,415			36,130
ESOP-Unearned compensation		(3,662	)		(3,709	)		(3,756	)		(3,803	)		(3,850	)
Accumulated other comprehensive income, net of tax		202			101			895			1,070			1,181
Total stockholders' equity		100,710			100,859			99,819			94,938			84,529
Total liabilities and stockholders' equity	$	744,142		$	738,188		$	721,072		$	722,968		$	724,041

Randolph Bancorp, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share amounts)

(Unaudited)

	Three Months Ended									% Change
	June 30,			March 31,			June 30,			Jun 2021 vs.		Jun 2021 vs.
	2021			2021			2020			Mar 2021		Jun 2020
Interest and dividend income:
Loans	$	5,505		$	5,508		$	5,723		(0.1	)%		(3.8	)%
Other interest and dividend income		237			253			336		(6.3	)%		(29.5	)%
Total interest and dividend income		5,742			5,761			6,059		(0.3	)%		(5.2	)%

Interest expense		543			670			1,326		(19.0	)%		(59.0	)%

Net interest income		5,199			5,091			4,733		2.1	%		9.8	%
Provision (credit) for loan losses		(27	)		(213	)		1,068		(87.3	)%		(102.5	)%
Net interest income after provision (credit) for loan losses		5,226			5,304			3,665		(1.5	)%		42.6	%

Non-interest income:
Customer service fees		419			367			266		14.2	%		57.5	%
Gain on loan origination and sale activities, net		5,740			10,993			14,370		(47.8	)%		(60.1	)%
Mortgage servicing fees, net		381			779			(1,354	)	(51.1	)%		(128.1	)%
Other		276			284			217		(2.8	)%		27.2	%
Total non-interest income		6,816			12,423			13,499		(45.1	)%		(49.5	)%
Non-interest expenses:
Salaries and employee benefits		7,310			8,437			8,402		(13.4	)%		(13.0	)%
Occupancy and equipment		621			744			838		(16.5	)%		(25.9	)%
Professional fees		323			561			230		(42.4	)%		40.4	%
Marketing		200			170			152		17.6	%		31.6	%
FDIC insurance		54			54			39		0.0	%		38.5	%
Other non-interest expenses		2,119			1,985			1,718		6.8	%		23.3	%
Total non-interest expenses		10,627			11,951			11,379		(11.1	)%		(6.6	)%
Income before income taxes		1,415			5,776			5,785		(75.5	)%		(75.5	)%
Income tax expense (benefit)		(162	)		1,664			594		(109.7	)%		(127.3	)%
Net income	$	1,577		$	4,112		$	5,191		(61.6	)%		(69.6	)%

Net income per share:
Basic	$	0.32		$	0.81		$	1.02
Diluted	$	0.31		$	0.78		$	1.02

Weighted average shares outstanding:
Basic		4,921,182			5,056,165			5,092,490
Diluted		5,135,582			5,254,907			5,092,490

Randolph Bancorp, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share amounts)

(Unaudited)

	Year to Date						% Change
	June 30,			June 30,			Jun 2021 vs.
	2021			2020			Jun 2020
Interest and dividend income:
Loans	$	11,013		$	11,343		(2.9	)%
Other interest and dividend income		490			769		(36.3	)%
Total interest and dividend income		11,503			12,112		(5.0	)%

Interest expense		1,213			2,955		(59.0	)%

Net interest income		10,290			9,157		12.4	%
Provision (credit) for loan losses		(240	)		1,792		(113.4	)%
Net interest income after provision (credit) for loan losses		10,530			7,365		43.0	%

Non-interest income:
Customer service fees		786			573		37.2	%
Gain on loan origination and sale activities, net		16,733			21,514		(22.2	)%
Mortgage servicing fees, net		1,160			(2,608	)	(144.5	)%
Other		560			472		18.6	%
Total non-interest income		19,239			19,951		(3.6	)%
Non-interest expenses:
Salaries and employee benefits		15,747			16,527		(4.7	)%
Occupancy and equipment		1,365			1,537		(11.2	)%
Professional fees		884			635		39.2	%
Marketing		370			304		21.7	%
FDIC insurance		108			96		12.5	%
Other non-interest expenses		4,104			3,239		26.7	%
Total non-interest expenses		22,578			22,338		1.1	%
Income before income taxes		7,191			4,978		44.5	%
Income tax expense		1,502			605		148.3	%
Net income	$	5,689		$	4,373		30.1	%

Net income per share:
Basic	$	1.14		$	0.86
Diluted	$	1.10		$	0.86

Weighted average shares outstanding:
Basic		4,988,283			5,107,700
Diluted		5,193,643			5,107,700

Randolph Bancorp, Inc.

Consolidated Statements of Operations Trend

(Dollars in thousands except per share amounts)

(Unaudited)

	Three Months Ended
	June 30,			March 31,			December 31,		September 30,		June 30,
	2021			2021			2020		2020		2020
Interest and dividend income:
Loans	$	5,505		$	5,508		$	5,532	$	5,337	$	5,723
Other interest and dividend income		237			253			296		311		336
Total interest and dividend income		5,742			5,761			5,828		5,648		6,059

Interest expense		543			670			788		979		1,326

Net interest income		5,199			5,091			5,040		4,669		4,733
Provision (credit) for loan losses		(27	)		(213	)		215		546		1,068
Net interest income after provision (credit) for loan losses		5,226			5,304			4,825		4,123		3,665

Non-interest income:
Customer service fees		419			367			381		330		266
Gain on loan origination and sale activities, net		5,740			10,993			14,620		18,102		14,370
Mortgage servicing fees, net		381			779			275		1,180		(1,354	)
Other		276			284			311		262		217
Total non-interest income		6,816			12,423			15,587		19,874		13,499
Non-interest expenses:
Salaries and employee benefits		7,310			8,437			8,722		7,911		8,402
Occupancy and equipment		621			744			1,150		859		838
Professional fees		323			561			389		253		230
Marketing		200			170			231		154		152
FDIC insurance		54			54			51		41		39
Other non-interest expenses		2,119			1,985			2,384		1,833		1,718
Total non-interest expenses		10,627			11,951			12,927		11,051		11,379
Income before income taxes		1,415			5,776			7,485		12,946		5,785
Income tax expense (benefit)		(162	)		1,664			2,211		2,661		594
Net income	$	1,577		$	4,112		$	5,274	$	10,285	$	5,191

Net income per share:
Basic	$	0.32		$	0.81		$	1.03	$	2.01	$	1.02
Diluted	$	0.31		$	0.78		$	1.01	$	2.01	$	1.02

Weighted average shares outstanding:
Basic		4,921,182			5,056,165			5,135,069		5,120,367		5,092,490
Diluted		5,135,582			5,254,907			5,244,414		5,120,367		5,092,490

Randolph Bancorp, Inc.

Average Balances/Yields

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 30, 2021							March 31, 2021							June 30, 2020
	Average			Interest		Average		Average			Interest		Average		Average			Interest		Average
	Outstanding			Earned/		Yield/		Outstanding			Earned/		Yield/		Outstanding			Earned/		Yield/
(Dollars in thousands)	Balance			Paid		Rate		Balance			Paid		Rate		Balance			Paid		Rate
Interest-earning assets:
Loans ⁽¹⁾	$	592,750		$	5,505	3.71	%	$	594,021		$	5,508	3.71	%	$	576,964		$	5,723	3.97	%
Investment securities^{(2) (3)}		55,376			229	1.65	%		57,818			247	1.71	%		58,119			332	2.28	%
Interest-earning deposits		43,888			8	0.07	%		35,492			7	0.08	%		22,918			5	0.09	%
Total interest-earning assets		692,014			5,742	3.32	%		687,331			5,762	3.35	%		658,001			6,060	3.68	%
Noninterest-earning assets		40,257							42,045							40,156
Total assets	$	732,271						$	729,376						$	698,157
Interest-bearing liabilities:
Savings accounts		192,434			89	0.18	%		190,313			98	0.21	%		158,427			233	0.59	%
NOW accounts		69,730			38	0.22	%		69,511			48	0.28	%		46,593			50	0.43	%
Money market accounts		72,469			43	0.24	%		75,994			54	0.28	%		71,396			122	0.68	%
Term certificates		104,604			176	0.67	%		96,978			238	0.98	%		159,224			677	1.70	%
Total interest-bearing deposits		439,237			346	0.32	%		432,796			438	0.40	%		435,640			1,082	0.99	%
FHLBB and FRB advances		51,502			198	1.54	%		70,857			232	1.31	%		79,133			244	1.23	%
Total interest-bearing liabilities		490,739			544	0.44	%		503,653			670	0.53	%		514,773			1,326	1.03	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		124,656							106,929							77,947
Other noninterest-bearing liabilities		13,606							15,375							22,893
Total liabilities		629,001							625,957							615,613
Total stockholders' equity		103,270							103,419							82,544
Total liabilities and stockholders' equity	$	732,271						$	729,376						$	698,157
Net interest income				$	5,198						$	5,092						$	4,734
Interest rate spread⁽⁴⁾						2.88	%						2.82	%						2.65	%
Net interest-earning assets⁽⁵⁾	$	201,275						$	183,678						$	143,228
Net interest margin⁽⁶⁾						3.00	%						2.96	%						2.88	%

Ratio of interest-earning assets to interest-bearing liabilities		141.01	%						136.47	%						127.82	%

(1) Includes nonaccruing loan balances and interest received on such loans.

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

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

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

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

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

Randolph Bancorp, Inc.

Average Balances/Yields

(Dollars in thousands)

(Unaudited)

	Average Balance and Yields
	Year to Date
	June 30, 2021							June 30, 2020
	Average			Interest		Average		Average			Interest		Average
	Outstanding			Earned/		Yield/		Outstanding			Earned/		Yield/
(Dollars in thousands)	Balance			Paid		Rate		Balance			Paid		Rate
Interest-earning assets:
Loans ⁽¹⁾	$	593,382		$	11,013	3.71	%	$	554,053		$	11,343	4.09	%
Investment securities^{(2) (3)}		56,590			476	1.68	%		58,459			711	2.43	%
Interest-earning deposits		39,713			15	0.08	%		20,688			61	0.59	%
Total interest-earning assets		689,685			11,504	3.34	%		633,200			12,115	3.83	%
Noninterest-earning assets		41,146							35,965
Total assets	$	730,831						$	669,165
Interest-bearing liabilities:
Savings accounts		191,379			187	0.20	%		146,635			516	0.70	%
NOW accounts		69,621			86	0.25	%		42,821			101	0.47	%
Money market accounts		74,222			97	0.26	%		74,895			321	0.86	%
Term certificates		100,812			414	0.82	%		173,939			1,570	1.81	%
Total interest-bearing deposits		436,034			784	0.36	%		438,290			2,508	1.14	%
FHLBB and FRB advances		61,126			430	1.41	%		63,118			447	1.42	%
Total interest-bearing liabilities		497,160			1,214	0.49	%		501,408			2,955	1.18	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		115,841							70,333
Other noninterest-bearing liabilities		14,486							16,221
Total liabilities		627,487							587,962
Total stockholders' equity		103,344							81,204
Total liabilities and stockholders' equity	$	730,831						$	669,166
Net interest income				$	10,290						$	9,160
Interest rate spread⁽⁴⁾						2.85	%						2.65	%
Net interest-earning assets⁽⁵⁾	$	192,525						$	131,792
Net interest margin⁽⁶⁾						2.98	%						2.89	%

Ratio of interest-earning assets to interest-bearing liabilities		138.72	%						126.28	%

(1) Includes nonaccruing loan balances and interest received on such loans.

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

(3) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $2,000 and $3,000 for the six months ended June 30, 2021 and 2020, respectively.

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

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

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

Randolph Bancorp, Inc.

Average Balances Trend

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2021		2021		2020		2020		2020
Interest-earning assets:
Total loans	$	592,750	$	594,021	$	580,002	$	559,370	$	576,964
Investment securities		55,376		57,818		58,329		57,211		58,119
Interest-earning deposits		43,888		35,492		30,573		48,949		22,918
Total interest-earning assets		692,014		687,331		668,904		665,530		658,001
Non-interest earning assets		40,257		42,045		45,015		41,037		40,156
Total assets	$	732,271	$	729,376	$	713,919	$	706,567	$	698,157

Interest-bearing liabilities:
Savings accounts	$	192,434	$	190,313	$	181,653	$	170,762	$	158,427
NOW accounts		69,730		69,511		59,005		57,646		46,593
Money market accounts		72,469		75,994		75,106		72,369		71,396
Term certificates		104,604		96,978		112,260		131,053		159,224
Total interest-bearing deposits		439,237		432,796		428,024		431,830		435,640
FHLBB and FRB advances		51,502		70,857		77,584		82,639		79,133
Total interest-bearing liabilities		490,739		503,653		505,608		514,469		514,773
Noninterest-bearing liabilities:
Noninterest-bearing deposits		124,656		106,929		94,540		88,394		77,947
Other noninterest-bearing liabilities		13,606		15,375		13,539		12,724		22,893
Total liabilities		629,001		625,957		613,687		615,587		615,613
Total stockholders' equity		103,270		103,419		100,232		90,980		82,544
Total liabilities and stockholders' equity	$	732,271	$	729,376	$	713,919	$	706,567	$	698,157

Randolph Bancorp, Inc.

Average Balances Trend

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2021		2021		2020		2020		2020
Interest-earning assets:
Total loans	3.71	%	3.71	%	3.82	%	3.82	%	3.97	%
Investment securities	1.65	%	1.71	%	1.99	%	2.13	%	2.28	%
Interest-earning deposits	0.07	%	0.08	%	0.10	%	0.06	%	0.09	%
Total interest-earning assets	3.32	%	3.35	%	3.49	%	3.40	%	3.68	%

Interest-bearing liabilities:
Savings accounts	0.18	%	0.21	%	0.31	%	0.40	%	0.59	%
NOW accounts	0.22	%	0.28	%	0.29	%	0.28	%	0.43	%
Money market accounts	0.24	%	0.28	%	0.33	%	0.41	%	0.68	%
Term certificates	0.67	%	0.98	%	1.04	%	1.35	%	1.70	%
Total interest-bearing deposits	0.32	%	0.40	%	0.50	%	0.68	%	0.99	%
FHLBB and FRB advances	1.54	%	1.31	%	1.27	%	1.21	%	1.23	%
Total interest-bearing liabilities	0.44	%	0.53	%	0.62	%	0.76	%	1.03	%

Interest rate spread	2.88	%	2.82	%	2.87	%	2.64	%	2.65	%
Net interest rate margin	3.00	%	2.96	%	3.02	%	2.81	%	2.88	%
Ratio of interest-earning assets to interest-bearing liabilities	141.01	%	136.47	%	132.30	%	129.36	%	127.82	%

Randolph Bancorp, Inc.

Rate/Volume Analysis

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 30, 2021 vs. March 31, 2021
	Increase (Decrease)						Total
	Due to Changes in						Increase
	Volume			Rate			(Decrease)
Interest-earning assets:
Loans	$	(3	)	$	-		$	(3	)
Investment securities		(10	)		(8	)		(18	)
Interest-earning deposits		2			-			2
Total interest-earning assets		(11	)		(8	)		(19	)
Interest-bearing liabilities:
Savings accounts		1			(10	)		(9	)
NOW accounts		-			(10	)		(10	)
Money market accounts		(3	)		(8	)		(11	)
Term certificates		18			(80	)		(62	)
Total interest-bearing deposits		16			(108	)		(92	)
FHLBB and FRB advances		(70	)		35			(35	)
Total interest-bearing liabilities		(54	)		(73	)		(127	)
Change in net interest income	$	43		$	65		$	108

	Three Months Ended
	June 30, 2021 vs. 2020
	Increase (Decrease)						Total
	Due to Changes in						Increase
	Volume			Rate			(Decrease)
Interest-earning assets:
Loans	$	157		$	(375	)	$	(218	)
Investment securities		(15	)		(88	)		(103	)
Interest-earning deposits		4			-			4
Total interest-earning assets		146			(463	)		(317	)
Interest-bearing liabilities:
Savings accounts		43			(187	)		(144	)
NOW accounts		19			(31	)		(12	)
Money market accounts		2			(81	)		(79	)
Term certificates		(181	)		(320	)		(501	)
Total interest-bearing deposits		(117	)		(619	)		(736	)
FHLBB and FRB advances		(98	)		51			(47	)
Total interest-bearing liabilities		(215	)		(568	)		(783	)
Change in net interest income	$	361		$	105		$	466

Randolph Bancorp, Inc.

Rate/Volume Analysis

(Dollars in thousands)

(Unaudited)

	Year to Date
	June 30, 2021 vs. 2020
	Increase (Decrease)						Total
	Due to Changes in						Increase
	Volume			Rate			(Decrease)
Interest-earning assets:
Loans	$	313		$	(643	)	$	(330	)
Investment securities		(22	)		(213	)		(235	)
Interest-earning deposits		3			(47	)		(44	)
Total interest-earning assets		294			(903	)		(609	)
Interest-bearing liabilities:
Savings accounts		11			(340	)		(329	)
NOW accounts		18			(33	)		(15	)
Money market accounts		(3	)		(221	)		(224	)
Term certificates		(502	)		(654	)		(1,156	)
Total interest-bearing deposits		(476	)		(1,248	)		(1,724	)
FHLBB and FRB advances		(14	)		(4	)		(18	)
Total interest-bearing liabilities		(490	)		(1,252	)		(1,742	)
Change in net interest income	$	784		$	349		$	1,133

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended June 30, 2021
	Envision Bank			Envision Mortgage		Consolidated Total
Net interest income	$	4,535		$	664	$	5,199
Provision (credit) for loan losses		(27	)		-		(27	)
Net interest income after provision (credit) for loan losses		4,562			664		5,226

Non-interest income:
Customer service fees		393			26		419
Gain on loan origination and sale activities, net ⁽¹⁾		-			6,558		6,558
Mortgage servicing fees, net		(94	)		475		381
Other		158			118		276
Total non-interest income		457			7,177		7,634

Non-interest expenses:
Salaries and employee benefits		1,746			5,564		7,310
Occupancy and equipment		407			214		621
Other non-interest expenses		1,265			1,431		2,696
Total non-interest expenses		3,418			7,209		10,627

Income before income taxes and elimination of inter-segment profit	$	1,601		$	632		2,233

Elimination of inter-segment profit							(818	)
Income before income taxes							1,415

Income tax expense (benefit)							(162	)
Net income						$	1,577

_____________________________

(1) Before elimination of inter-segment profit.

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

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended March 31, 2021
	Envision Bank			Envision Mortgage		Consolidated Total
Net interest income	$	4,201		$	890	$	5,091
Provision (credit) for loan losses		(213	)		-		(213	)
Net interest income after provision (credit) for loan losses		4,414			890		5,304

Non-interest income:
Customer service fees		340			27		367
Gain on loan origination and sale activities, net ⁽¹⁾		-			11,674		11,674
Mortgage servicing fees, net		(94	)		873		779
Other		151			133		284
Total non-interest income		397			12,707		13,104

Non-interest expenses:
Salaries and employee benefits		1,802			6,635		8,437
Occupancy and equipment		443			301		744
Other non-interest expenses		1,087			1,683		2,770
Total non-interest expenses		3,332			8,619		11,951

Income before income taxes and elimination of inter-segment profit	$	1,479		$	4,978		6,457

Elimination of inter-segment profit							(681	)
Income before income taxes							5,776

Income tax expense							1,664
Net income						$	4,112

(1) Before elimination of inter-segment profit.

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended June 30, 2020
	Envision Bank			Envision Mortgage			Consolidated Total
Net interest income	$	3,944		$	789		$	4,733
Provision for loan losses		1,068			-			1,068
Net interest income after provision for loan losses		2,876			789			3,665

Non-interest income:
Customer service fees		245			21			266
Gain on loan origination and sale activities, net ⁽¹⁾		-			14,736			14,736
Mortgage servicing fees, net		(95	)		(1,258	)		(1,353	)
Other		85			132			217
Total non-interest income		235			13,631			13,866

Non-interest expenses:
Salaries and employee benefits		1,925			6,476			8,401
Occupancy and equipment		465			374			839
Other non-interest expenses		1,057			1,082			2,139
Total non-interest expenses		3,447			7,932			11,379

Income (loss) before income taxes and elimination of inter-segment profit	$	(336	)	$	6,488			6,152

Elimination of inter-segment profit								(367	)
Income before income taxes								5,785

Income tax expense								594
Net income							$	5,191

(1) Before elimination of inter-segment profit.

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

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

	For the Six Months Ended June 30, 2021
	Envision Bank			Envision Mortgage		Consolidated Total
Net interest income	$	8,736		$	1,554	$	10,290
Provision (credit) for loan losses		(240	)		-		(240	)
Net interest income after provision (credit) for loan losses		8,976			1,554		10,530

Non-interest income:
Customer service fees		733			53		786
Gain on loan origination and sale activities, net ⁽¹⁾		-			18,232		18,232
Mortgage servicing fees, net		(189	)		1,349		1,160
Other		309			251		560
Total non-interest income		853			19,885		20,738

Non-interest expenses:
Salaries and employee benefits		3,548			12,199		15,747
Occupancy and equipment		851			514		1,365
Other non-interest expenses		2,349			3,117		5,466
Total non-interest expenses		6,748			15,830		22,578

Income before income taxes and elimination of inter-segment profit	$	3,081		$	5,609		8,690

Elimination of inter-segment profit							(1,499	)
Income before income taxes							7,191

Income tax expense							1,502
Net income						$	5,689

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

	For the Six Months Ended June 30, 2020
	Envision Bank			Envision Mortgage			Consolidated Total
Net interest income	$	7,937		$	1,220		$	9,157
Provision for loan losses		1,792			-			1,792
Net interest income after provision for loan losses		6,145			1,220			7,365

Non-interest income:
Customer service fees		518			55			573
Gain on loan origination and sale activities, net ⁽¹⁾		-			22,209			22,209
Mortgage servicing fees, net		(182	)		(2,426	)		(2,608	)
Other		225			247			472
Total non-interest income		561			20,085			20,646

Non-interest expenses:
Salaries and employee benefits		5,023			11,504			16,527
Occupancy and equipment		869			668			1,537
Other non-interest expenses		2,203			2,071			4,274
Total non-interest expenses		8,095			14,243			22,338

Income (loss) before income taxes and elimination of inter-segment profit	$	(1,389	)	$	7,062			5,673
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Randolph Bancorp, Inc. Announces Second Quarter 2021 Financial Results