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Section 1: 8-K (8-K)

rndb-8k_20190723.htm

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

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

Date of Report (Date of earliest event reported): July 23, 2019

 

Randolph Bancorp, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Massachusetts

001-37780

81-1844402

(State or Other Jurisdiction

of Incorporation)

(Commission
File Number)

(IRS Employer

Identification No.)

10 Cabot Place, Stoughton, Massachusetts 02072

(Address of principal executive offices)

(781) 963-2100

(Registrant’s telephone number, including area code)

 

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

 

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

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

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

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

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

Title of Each Class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share

RNDB

The NASDAQ Stock Market LLC

 

 

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

 

Emerging growth company [X]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

 

 


 

Item 2.02

Results of Operations and Financial Condition.

On July 23, 2019, Randolph Bancorp, Inc. (the “Company”), the holding company for Envision Bank, issued a press release announcing its financial results for the three and six months ended June 30, 2019. The Company’s press release is included as Exhibit 99.1 to this report.

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

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits.

 

 

 

 

Exhibit

  

Description

99.1

  

Press release dated July 23, 2019

 


 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

 

 

 

 

 

 

 

 

 

Randolph Bancorp, Inc.

 

 

 

 

 

 

 

 

By:

 

/s/ Michael K. Devlin

 

 

 

 

Name:

Title:

 

Michael K. Devlin

Executive Vice President and Chief

Financial Officer

Date: July 23, 2019

 

 

 

 

 

 

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

rndb-ex991_6.htm

Exhibit 99.1

10 Cabot Place, Stoughton, MA 02072

News Release

For Immediate Release

July 23, 2019

For More Information, Contact:

Michael K. Devlin, Executive Vice President and Chief Financial Officer (617-925-1961)

[email protected]

 

RANDOLPH BANCORP, INC. ANNOUNCES SECOND QUARTER AND YEAR-TO-DATE 2019 FINANCIAL RESULTS

 

STOUGHTON, Massachusetts, July 23, 2019 – Randolph Bancorp, Inc. (the “Company”) (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the “Bank”), today announced net income of $1,506,000, or $0.28 per share, for the three months ended June 30, 2019 compared to a net loss of $1,010,000, or $0.18 per share, for the three months ended June 30, 2018. Net income for the six months ended June 30, 2019 was $1,455,000, or $0.27 per share, compared to a net loss of $1,717,000, or $0.31 per share, for the six months ended June 30, 2018.

 

At June 30, 2019, total assets amounted to $652.6 million compared to $614.3 million at March 31, 2019, an increase of $38.3 million, or 6.2%. During this quarterly period, loans held for sale increased by $60.9 million while portfolio loans decreased by $32.0 million. These changes were affected by management’s decision to transfer $28.6 million in residential mortgage portfolio loans to loans held for sale.

 

James P. McDonough, President and Chief Executive Officer, stated, “The decrease in mortgage rates over the past several months has provided homeowners the opportunity to realize a meaningful reduction in their monthly mortgage payments and has also provided home buyers increased opportunities to purchase a home. With our expanded team of loan originators, we were able to capitalize on the resulting market growth for residential mortgages. During the second quarter of 2019, we originated $226.2 million in residential mortgages compared to $145.9 million in the prior year quarter, an increase of 55%. Refinanced loans accounted for $60.8 million, or 75%, of this increase. The surge in residential mortgage loan production combined with the continuing flow of borrower applications resulted in a $3.2 million, or 173%, increase in the gain on loan origination and sales activities in the second quarter of 2019 compared to the prior year quarter. We are optimistic that this higher production level will continue in the third quarter.”

 

Mr. McDonough added, “With the decline in interest rates, we also saw an opportunity to reduce our portfolio of lower-yielding residential mortgage loans. With the transfer of $28.6 million of such loans from portfolio to loans held for sale, we positioned the portfolio for future growth of both commercial and residential real estate loans.”

 

Second Quarter Operating Results

Net interest income increased by $456,000, or 11.3%, to $4.5 million for the three months ended June 30, 2019 compared to the same period in the prior year. This increase was due to an increase in average interest-earning assets between periods of $100.9 million, or 19.5%, as the Company continued to leverage the capital raised in its 2016 initial public offering. The net interest margin decreased in the second quarter of 2019 to 2.91% from 3.12% in the second quarter of 2018 due primarily to greater utilization of wholesale funding to support loan growth, the rising cost of both deposits and borrowings due to a series of increases in the federal funds rate throughout 2018, and a continuing flattening of the yield curve.

 

The Company recognized a credit of $144,000 to the allowance for loan losses for the three months ended June 30, 2019 compared to a credit of $90,000 for the three months ended June 30, 2018. The credit to the allowance in the 2019 period was primarily due to decreases in the loan portfolio attributable to the transfer of residential mortgages loans to loans held for sale and the repayment of a large commercial and industrial loan. In the second quarter of 2018, management reduced


 

the general component of the allowance for loan losses for both commercial real estate loans and home equity loans which lead to the credit to the provision of $90,000. The allowance for loan losses was 0.91% of total loans at June 30, 2019 and December 31, 2018 and was 179.4% of non-performing loans at June 30, 2019 compared to 121.1% at December 31, 2018.

 

Non-interest income increased $3.1 million to $5.9 million for the three months ended June 30, 2019 from $2.8 million for the three months ended June 30, 2018 due entirely to an increase of $3.2 million, or 173.4%, in the gain on loan origination and sale activities. This increase was volume related due to the addition of nearly 20 loan originators over the past twelve months and the favorable interest rate environment. Beginning in the first quarter of 2019, interest rates on mortgage loans began to decline which lead to the first significant increase in loan refinancing activity experienced in nearly three years. Together these factors resulted in a 77.7% increase in loans sold during the second quarter of 2019 as compared to the prior year period, and a fourfold increase in the pipeline of interest rate lock agreements with customers at June 30, 2019 as compared to June 30, 2018.  The increase in the gain on loan origination and sale activities was partially offset by a decrease in net loan servicing fees due to a fair value adjustment for mortgage servicing rights of $114,000 as loan prepayment speeds were adjusted higher to reflect lower interest rates.

 

Non-interest expenses increased $951,000, or 12.0%, to $8.9 million for the three months ended June 30, 2019 from $7.9 million for the three months ended June 30, 2018.  Salaries and employee benefits increased $1.1 million, or 22.4%, between periods due to an increase in loan originator commissions and other compensation of $568,000 attributable to Envision Mortgage’s increased loan production. Also contributing to the increase in salaries and employee benefits was $307,000 in additional incentive compensation and loan officer transition payments, and $366,000 in additional employee compensation largely related to Envision Mortgage’s increased loan production. These increases were partially offset by an increase in deferred loan origination costs and fees of $225,000.

 

Due to the sale of the Boston branch and the partial closure of the Andover operations center in the fourth quarter of 2018, occupancy and equipment costs declined by $86,000 for the three months ended June 30, 2019 compared to the same period in the prior year. In addition, spending on marketing and professional services were reduced by $141,000 and $33,000, respectively, between periods. The savings in marketing expenses was caused by advertising in the prior year associated with the re-branding to Envision Bank. The increase in other non-interest expenses was driven by the increase in Envision Mortgage’s loan production.

 

The provision for income taxes for the three months ended June 30, 2019 includes a state income tax provision of $82,000 and reversal of the federal tax benefit recognized in the first quarter of 2019. The state tax provision is based on the projected effective state tax rate for the year. The reversal of the federal tax benefit recognized was fully offset by a tax benefit included in other comprehensive income.

 

The Company has a net operating loss carryforward (“NOL”) for federal tax purposes of $13.6 million. Since 2014, the NOL as well as other deferred tax assets have been subject to a full valuation allowance, which totaled $2.7 million at June 30, 2019. The valuation allowance for net deferred tax assets was reduced in 2019 due to the impact of the Company’s earnings on the NOL. We evaluate the tax valuation allowance on a quarterly basis. Based on recent operating results, we concluded that the valuation allowance should be maintained at June 30, 2019.

 

Year-to-Date Operating Results

Net interest income increased by $853,000, or 10.6%, for the six months ended June 30, 2019 compared to the same period in the prior year. This increase was due to an increase in average interest-earning assets between periods of $88.8 million, or 17.5%, as the Company continued to leverage the capital raised in its 2016 initial public offering.  The net interest margin decreased in the first half of 2019 to 2.97% from 3.16% in the first half of 2018 due primarily to greater utilization of wholesale funding to support loan growth, the rising cost of both deposits and borrowings due to a series of increases in the federal funds rate throughout 2018 and a continuing flattening of the yield curve.

 

The Company recognized a credit of $144,000 to the allowance for loan losses for the six months ended June 30, 2019 compared to a provision of $5,000 for the six months ended June 30, 2018. The credit to the allowance in the 2019 period was primarily due to decreases in the loan portfolio attributable to the transfer of residential mortgages loans to loans held

877-963-2100 • www.envisionbank.com                                                                                       Member FDIC • Member DIF

2


 

for sale and the repayment of a large commercial and industrial loan. In the second quarter of 2018, management reduced the unallocated portion of the allowance for loan losses for both commercial real estate loans and home equity loans. The unallocated reserve for consumer loans was increased slightly during the quarter. Together these changes reduced the amount that would have been provided based on growth in the loan portfolio by $265,000.

Non-interest income increased $4.1 million to $9.3 million for the six months ended June 30, 2019 from $5.2 million for the six months ended June 30, 2018 due entirely to an increase of $4.3 million, or 125.1%, in the gain on loan origination and sale activities. This increase was volume related due to the addition of nearly 20 loan originators over the past twelve months and the favorable interest rate environment. Beginning in the first quarter of 2019, interest rates on mortgage loans began to decline which lead to the first significant increase in loan refinancing activity experienced in nearly three years. Together these factors resulted in a 36.6% increase in loans sold during the first half of 2019 as compared to the prior year period, and a fourfold increase in the pipeline of interest rate lock agreements with customers at June 30, 2019 as compared to June 30, 2018. The increase in the gain on loan origination and sale activities was partially offset by a decrease in net loan servicing fees due to a fair value adjustment for mortgage servicing rights of $114,000 as loan prepayment speeds were adjusted higher to reflect lower interest rates.

Non-interest expenses increased $1.8 million, or 12.3%, to $16.7 million for the six months ended June 30, 2019 from $14.9 million for the six months ended June 30, 2018. Salaries and employee benefits increased $2.1 million, or 22.2%, between periods due to an increase in loan originator commissions and other compensation of $940,000 attributable to Envision Mortgage’s increased loan production. Also contributing to the increase in salaries and employee benefits was $617,000 in additional incentive compensation and loan officer transition payments, and $563,000 in additional employee compensation largely related to Envision Mortgage’s increased loan production. These increases were partially offset by an increase in deferred loan origination costs and fees of $357,000.

Due to the sale of the Boston branch and the partial closure of the Andover operations center in the fourth quarter of 2018, occupancy and equipment costs declined by $128,000 for the six months ended June 30, 2019 compared to the same period in the prior year. In addition, spending on marketing was reduced by $255,000 between periods. The savings in marketing expenses was caused by advertising in the prior year associated with the re-branding to Envision Bank. The increase in other non-interest expenses was driven by the increase in Envision Mortgage’s loan production.

State income taxes of $83,000 and $8,000 were provided during the six months ended June 30, 2019 and 2018, respectively.

Balance Sheet

Total assets were $652.6 million at June 30, 2019 compared to $614.3 million at December 31, 2018, an increase of $38.2 million, or 6.2%. This growth resulted from an increase of $64.3 million in loans held for sale, partially offset by a decrease of $32.0 million in portfolio loans. These changes were significantly impacted by management’s decision in the second quarter of 2019 to transfer $28.6 million in residential mortgage loans from portfolio to loans held for sale. All except $2.2 million of these loans are currently under agreement to be sold with an expected closing date in the first half of August. The decision to sell these loans was made in light of favorable market conditions caused by a reduction in long-term interest rates. The increase in loans held for sale was also affected by the $80.3 million, or 55.0%, increase in Envision Mortgage’s loan production in the second quarter of 2019 as compared to the prior year period. The increase in total assets was largely funded by an increase of $32.5 million in advances from the Federal Home Loan Bank of Boston.

 

Net loans totaled $451.9 million at June 30, 2019, a decrease of $32.0 million, or 6.6%, from December 31, 2018. This decrease occurred across all categories of real estate secured loans and was primarily the result of the aforementioned transfer of residential mortgage loans to loans held for sale. Commercial and industrial loans decreased by $6.7 million during the first half of 2019 due in large part to a $4.7 million payoff of a loan participation with a super-regional bank. No new loan participations were purchased during the first half of 2019. Consumer loans, which consist primarily of purchased loans, decreased by a total of $1.9 million during the first half of 2019 as loan repayments exceeded loan purchases during the period.  

 

877-963-2100 • www.envisionbank.com                                                                                       Member FDIC • Member DIF

3


 

Deposits increased $4.5 million, or 1.0%, to $441.6 million at June 30, 2019 from $437.1 million at December 31, 2018. Included in this increase was $2.1 million of brokered deposits. Non-brokered deposits increased $2.4 million during the first half of 2019. In December 2018, we closed our Boston branch. During the first half of 2019, the Bank experienced $7.5 million of deposit run-off with customers associated with this former branch which has adversely affected deposit growth.

 

Total stockholders’ equity was $79.4 million at June 30, 2019 compared to $78.0 million at December 31, 2018. The increase of $1.4 million during the first half of 2019 was due to net income of $1.5 million, an increase in the fair value of available-for-sale securities of $1.4 million and equity adjustments of $598,000 related to the stock benefit plan and employee stock ownership plan. These increases were partially offset by stock repurchases of $2.0 million as the Company repurchased 136,923 of its shares during the first half of 2019. The Company’s tier one capital to average assets was 12.4% at June 30, 2019 compared to 14.1% at December 31, 2018. The Bank exceeded all regulatory capital requirements at June 30, 2019.  

 

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, eight loan production offices located throughout Massachusetts and one loan production office in Southern New Hampshire.

 

Randolph Bancorp, Inc. is the sole member of Envision Bank Foundation, Inc. (the “Foundation”), a nonprofit corporation organized in 2016 to financially support community projects that improve the quality of life in markets served by Envision Bank. Since inception, the Foundation has funded projects focused on support of military veterans and their families, and education.

 

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 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, non-interest income to total income and the efficiency ratio, 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.

877-963-2100 • www.envisionbank.com                                                                                       Member FDIC • Member DIF

4


 

Randolph Bancorp, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

Assets

 

Cash and due from banks

 

$

3,614

 

 

$

3,451

 

Interest-bearing deposits

 

 

7,561

 

 

 

3,667

 

Total cash and cash equivalents

 

 

11,175

 

 

 

7,118

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

2,205

 

 

 

2,205

 

Securities available for sale, at fair value

 

 

48,851

 

 

 

50,556

 

Loans held for sale, at fair value

 

 

102,784

 

 

 

38,474

 

Loans, net of allowance for loan losses of $4,154 in 2019 and $4,437 in 2018

 

 

451,870

 

 

 

483,846

 

Federal Home Loan Bank of Boston stock, at cost

 

 

5,375

 

 

 

4,700

 

Accrued interest receivable

 

 

1,665

 

 

 

1,504

 

Mortgage servicing rights, net

 

 

8,201

 

 

 

7,786

 

Premises and equipment, net

 

 

6,162

 

 

 

6,368

 

Bank-owned life insurance

 

 

8,349

 

 

 

8,256

 

Foreclosed real estate, net

 

 

90

 

 

 

65

 

Other assets

 

 

5,842

 

 

 

3,462

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

652,569

 

 

$

614,340

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

Deposits:

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

65,420

 

 

$

64,229

 

Interest bearing

 

 

313,584

 

 

 

312,321

 

Brokered

 

 

62,649

 

 

 

60,580

 

Total deposits

 

 

441,653

 

 

 

437,130

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank of Boston advances

 

 

121,553

 

 

 

89,036

 

Mortgagors' escrow accounts

 

 

1,863

 

 

 

2,129

 

Post-employment benefit obligations

 

 

2,424

 

 

 

2,551

 

Other liabilities

 

 

5,723

 

 

 

5,533

 

Total liabilities

 

 

573,216

 

 

 

536,379

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

 

 

58

 

 

 

60

 

Additional paid-in capital

 

 

54,083

 

 

 

55,608

 

Retained earnings

 

 

29,784

 

 

 

28,329

 

ESOP-Unearned compensation

 

 

(4,038

)

 

 

(4,132

)

Accumulated other comprehensive loss, net of tax

 

 

(534

)

 

 

(1,904

)

Total stockholders' equity

 

 

79,353

 

 

 

77,961

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

652,569

 

 

$

614,340

 

877-963-2100 • www.envisionbank.com                                                                                       Member FDIC • Member DIF

5


 

Randolph Bancorp, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share amounts)

(Unaudited)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

6,058

 

 

$

4,586

 

 

$

11,646

 

 

$

8,881

 

Other interest and dividend income

 

 

396

 

 

 

453

 

 

 

824

 

 

 

885

 

Total interest and dividend income

 

 

6,454

 

 

 

5,039

 

 

 

12,470

 

 

 

9,766

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,965

 

 

 

1,006

 

 

 

3,602

 

 

 

1,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

4,489

 

 

 

4,033

 

 

 

8,868

 

 

 

8,015

 

Provision (credit) for loan losses

 

 

(144

)

 

 

(90

)

 

 

(144

)

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision (credit) for loan losses

 

 

4,633

 

 

 

4,123

 

 

 

9,012

 

 

 

8,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

362

 

 

 

439

 

 

 

691

 

 

 

739

 

Gain on loan origination and sale activities, net

 

 

5,068

 

 

 

1,854

 

 

 

7,656

 

 

 

3,401

 

Mortgage servicing fees, net

 

 

224

 

 

 

291

 

 

 

543

 

 

 

625

 

Gain on sales of securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

49

 

Other

 

 

201

 

 

 

199

 

 

 

378

 

 

 

376

 

Total non-interest income

 

 

5,855

 

 

 

2,783

 

 

 

9,268

 

 

 

5,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

6,092

 

 

 

4,979

 

 

 

11,504

 

 

 

9,415

 

Occupancy and equipment

 

 

643

 

 

 

729

 

 

 

1,299

 

 

 

1,427

 

Professional fees

 

 

287

 

 

 

320

 

 

 

555

 

 

 

572

 

Marketing

 

 

180

 

 

 

321

 

 

 

369

 

 

 

624

 

Other non-interest expenses

 

 

1,661

 

 

 

1,563

 

 

 

3,015

 

 

 

2,871

 

Total non-interest expenses

 

 

8,863

 

 

 

7,912

 

 

 

16,742

 

 

 

14,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

1,625

 

 

 

(1,006

)

 

 

1,538

 

 

 

(1,709

)

Income tax expense

 

 

119

 

 

 

4

 

 

 

83

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,506

 

 

$

(1,010

)

 

$

1,455

 

 

$

(1,717

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share (basic and diluted)

 

$

0.28

 

 

$

(0.18

)

 

$

0.27

 

 

$

(0.31

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

5,455,679

 

 

 

5,577,683

 

 

 

5,467,057

 

 

 

5,592,809

 

877-963-2100 • www.envisionbank.com                                                                                       Member FDIC • Member DIF

6


 

Randolph Bancorp, Inc.

Averages Balances/Yields

(Dollars in thousands)

(Unaudited)

 

 

Average Balance and Yields

 

 

For the Three Months Ended June 30,

 

 

2019

 

 

2018

 

 

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)

$

558,643

 

 

$

6,058

 

 

 

4.34

%

 

$

448,060

 

 

$

4,586

 

 

 

4.09

%

  Investment securities(2) (3)

 

53,947

 

 

 

373

 

 

 

2.77

%

 

 

60,290

 

 

 

425

 

 

 

2.82

%

  Interest-earning deposits

 

5,915

 

 

 

26

 

 

 

1.76

%

 

 

9,240

 

 

 

34

 

 

 

1.47

%

Total interest-earning assets

 

618,505

 

 

 

6,457

 

 

 

4.18

%

 

 

517,590

 

 

 

5,045

 

 

 

3.90

%

Noninterest-earning assets

 

23,820

 

 

 

 

 

 

 

 

 

 

 

29,660

 

 

 

 

 

 

 

 

 

Total assets

$

642,325

 

 

 

 

 

 

 

 

 

 

$

547,250

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Savings accounts

 

103,849

 

 

 

106

 

 

 

0.41

%

 

 

104,470

 

 

 

45

 

 

 

0.17

%

  NOW accounts

 

39,130

 

 

 

49

 

 

 

0.50

%

 

 

43,113

 

 

 

58

 

 

 

0.54

%

  Money market accounts

 

61,361

 

 

 

232

 

 

 

1.51

%

 

 

69,626

 

 

 

161

 

 

 

0.92

%

  Term certificates

 

169,740

 

 

 

834

 

 

 

1.97

%

 

 

125,973

 

 

 

466

 

 

 

1.48

%

Total interest-bearing deposits

 

374,080

 

 

 

1,221

 

 

 

1.31

%

 

 

343,182

 

 

 

730

 

 

 

0.85

%

  FHLB advances

 

118,364

 

 

 

744

 

 

 

2.51

%

 

 

57,562

 

 

 

276

 

 

 

1.92

%

Total interest-bearing liabilities

 

492,444

 

 

 

1,965

 

 

 

1.60

%

 

 

400,744

 

 

 

1,006

 

 

 

1.00

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Noninterest-bearing deposits

 

62,377

 

 

 

 

 

 

 

 

 

 

 

60,524

 

 

 

 

 

 

 

 

 

  Other noninterest-bearing liabilities

 

8,270

 

 

 

 

 

 

 

 

 

 

 

6,340

 

 

 

 

 

 

 

 

 

Total liabilities

 

563,091

 

 

 

 

 

 

 

 

 

 

 

467,608

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

79,234

 

 

 

 

 

 

 

 

 

 

 

79,642

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

642,325

 

 

 

 

 

 

 

 

 

 

$

547,250

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

4,492

 

 

 

 

 

 

 

 

 

 

$

4,039

 

 

 

 

 

Interest rate spread(4)

 

 

 

 

 

 

 

 

 

2.58

%

 

 

 

 

 

 

 

 

 

 

2.90

%

Net interest-earning assets(5)

$

126,061

 

 

 

 

 

 

 

 

 

 

$

116,846

 

 

 

 

 

 

 

 

 

Net interest margin(6)

 

 

 

 

 

 

 

 

 

2.91

%

 

 

 

 

 

 

 

 

 

 

3.12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

 

125.60

%

 

 

 

 

 

 

 

 

 

 

129.16

%

 

 

 

 

 

 

 

 

 

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

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

(3) Includes tax equivalent adjustments for municipal securities, based on an effective tax rate of 21%, of $3,000 and $6,000 for the three months ended June 30, 2019 and 2018, 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.

877-963-2100 • www.envisionbank.com                                                                                       Member FDIC • Member DIF

7


 

Randolph Bancorp, Inc.

Averages Balances/Yields

(Dollars in thousands)

(Unaudited)

 

 

Average Balance and Yields

 

 

For the Six Months Ended June 30,

 

 

2019

 

 

2018

 

 

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)

$

537,549

 

 

$

11,646

 

 

 

4.33

%

 

$

439,069

 

 

$

8,881

 

 

 

4.05

%

  Investment securities(2) (3)

 

54,551

 

 

 

777

 

 

 

2.85

%

 

 

60,906

 

 

 

844

 

 

 

2.77

%

  Interest-earning deposits

 

5,258

 

 

 

54

 

 

 

2.05

%

 

 

8,563

 

 

 

64

 

 

 

1.49

%

Total interest-earning assets

 

597,358

 

 

 

12,477

 

 

 

4.18

%

 

 

508,538

 

 

 

9,789

 

 

 

3.85

%

Noninterest-earning assets

 

24,462

 

 

 

 

 

 

 

 

 

 

 

29,498

 

 

 

 

 

 

 

 

 

Total assets

$

621,820

 

 

 

 

 

 

 

 

 

 

$

538,036

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Savings accounts

 

102,912

 

 

 

188

 

 

 

0.37

%

 

 

104,305

 

 

 

87

 

 

 

0.17

%

  NOW accounts

 

39,851

 

 

 

97

 

 

 

0.49

%

 

 

43,666

 

 

 

111

 

 

 

0.51

%

  Money market accounts

 

66,384

 

 

 

461

 

 

 

1.39

%

 

 

68,670

 

 

 

276

 

 

 

0.80

%

  Term certificates

 

166,704

 

 

 

1,634

 

 

 

1.96

%

 

 

113,060

 

 

 

736

 

 

 

1.30

%

Total interest-bearing deposits

 

375,851

 

 

 

2,380

 

 

 

1.27

%

 

 

329,701

 

 

 

1,210

 

 

 

0.73

%

  FHLB advances

 

97,259

 

 

 

1,222

 

 

 

2.51

%

 

 

62,010

 

 

 

541

 

 

 

1.74

%

Total interest-bearing liabilities

 

473,110

 

 

 

3,602

 

 

 

1.52

%

 

 

391,711

 

 

 

1,751

 

 

 

0.89

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Noninterest-bearing deposits

 

62,063

 

 

 

 

 

 

 

 

 

 

 

59,809

 

 

 

 

 

 

 

 

 

  Other noninterest-bearing liabilities

 

7,952

 

 

 

 

 

 

 

 

 

 

 

6,049

 

 

 

 

 

 

 

 

 

Total liabilities

 

543,125

 

 

 

 

 

 

 

 

 

 

 

457,569

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

78,695

 

 

 

 

 

 

 

 

 

 

 

80,467

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

621,820

 

 

 

 

 

 

 

 

 

 

$

538,036

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

8,875

 

 

 

 

 

 

 

 

 

 

$

8,038

 

 

 

 

 

Interest rate spread(4)

 

 

 

 

 

 

 

 

 

2.65

%

 

 

 

 

 

 

 

 

 

 

2.96

%

Net interest-earning assets(5)

$

124,248

 

 

 

 

 

 

 

 

 

 

$

116,827

 

 

 

 

 

 

 

 

 

Net interest margin(6)

 

 

 

 

 

 

 

 

 

2.97

%

 

 

 

 

 

 

 

 

 

 

3.16

%