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Section 1: 8-K (8-K)

rndb-8k_20200225.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): February 25, 2020

 

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 February 25, 2020, Randolph Bancorp, Inc. (the “Company”), the holding company for Envision Bank, issued a press release announcing its financial results for the fourth quarter and year ended December 31, 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 February 25, 2020

 

 

 

 


 


 

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: February 25, 2020

 

 

 

 

 

 

 

 

(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

February 25, 2020

For More Information, Contact:

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

[email protected]

 

RANDOLPH BANCORP, INC. ANNOUNCES FOURTH QUARTER AND YEAR END 2019 FINANCIAL RESULTS

 

STOUGHTON, Massachusetts, February 25, 2020 – Randolph Bancorp, Inc. (the “Company”) (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the “Bank”), today announced net income of $828,000, or $0.16 per share, for the three months ended December 31, 2019 compared to a net loss of $228,000, or $0.04 per share, for the three months ended December 31, 2018. Net income for the year ended December 31, 2019 was $3,428,000, or $0.64 per share, compared to a net loss of $2,086,000, or $0.37 per share, for the year ended December 31, 2018.  

The operating results for the fourth quarter and full year of 2018 were affected by non-recurring items. Excluding non-recurring items, the net loss was $1.6 million in the fourth quarter of 2018, while the net loss for the year ended December 31, 2018 was $3.7 million. The non-recurring items, all presented on a pre-tax basis, were as follows:

 

 

A gain on the sale of buildings of $2.5 million, including a gain of $2.3 million in the fourth quarter,  

 

Restructuring charges of $1.0 million, including $875,000 in the fourth quarter, and

 

An insurance recovery for property damage of $90,000.

 

At December 31, 2019, total assets amounted to $631.0 million compared to $641.4 million at September 30, 2019, a decrease of $10.4 million, or 1.7%. This decrease was due to a reduction of $31.6 million in loans held for sale during the quarter ended December 31, 2019 attributable to both a seasonal decline in home purchases and a dip in loan refinancing activity. The reduction in loans held for sale was partially offset by increases in the loan and investment portfolios of $11.9 million and $10.3 million, respectively.

 

James P. McDonough, President and Chief Executive Officer, stated “The turnaround in operating results in 2019 has been extremely gratifying. In the fourth quarter of 2018, we paved the way for this turnaround with our consolidation of mortgage banking operations and the expansion of our geographic footprint to Central and Western Massachusetts with fully staffed loan origination offices. Shortly thereafter, we further enhanced our production capabilities with the addition of an experienced team of loan originators in Boston’s MetroWest region, all at a time when refinancing activity had slowed and sales margins had contracted. By enhancing our capacity to generate additional revenues, we were well positioned in 2019 to take advantage of the boom in loan refinancing activity resulting from the decline in mortgage rates which started in the first quarter of the year. As a result, we closed $969 million in residential mortgage loans in 2019, a near 90% increase from 2018. In addition, our gain on loan origination and sale activities increased by $11.4 million, or 151%, from $7.5 million in 2018 to $18.9 million in 2019.”

 

“We are also pleased with our progress throughout the second half of 2019 in growing our non-brokered deposits, a key strategic initiative”, Mr. McDonough commented. “During this period, such deposits increased $27.2 million, an annualized growth rate of 14.3%. We believe that our core checking account acquisition efforts working with a nationally recognized organization specializing in such programs, combined with our use of business development officers and a focus on the need for competitively priced products for both consumer and business customers, position us well to sustain this momentum into 2020”, he added.


 

Fourth Quarter Operating Results

Net interest income was flat at $4.4 million for the three months ended December 31, 2019 compared to the same period in the prior year. While average interest-earning assets increased between periods by $21.6 million, or 3.7%, the net interest margin decreased in the fourth quarter of 2019 to 2.88% from 3.01% in the fourth quarter of 2018 due primarily to the rising cost of deposits as more customers shift their funds to accounts offering more attractive interest rates.  

 

The Company recognized a provision for loan losses of $144,000 for the three months ended December 31, 2019 compared to a provision of $579,000 in the prior year quarter. The provisions in both periods were primarily due to loan growth. The provision in the fourth quarter of 2018 also included $149,000 for an impaired consumer loan. The allowance for loan losses was 0.90% and 0.91% of total loans at December 31, 2019 and 2018, respectively, and was 131.4% and 121.1% of non-performing loans at December 31, 2019 and 2018, respectively.

 

Non-interest income increased $807,000 to $6.1 million for the three months ended December 31, 2019 from $5.3 million for the three months ended December 31, 2018. Non-interest income in the fourth quarter of 2018 included a gain of $2.3 million on the sale of our former Boston branch. Excluding this non-recurring item, non-interest income increased $3.1 million in the fourth quarter of 2019 compared to the prior year period due to an increase of $3.3 million, or 150.2%, 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 led to the first significant increase in loan refinancing activity experienced in nearly three years. Together these factors resulted in a 171.4% increase in loans sold during the fourth quarter of 2019 compared to the prior year period. 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 (“MSRs”) of $284,000 as actual loan prepayments exceeded expectations.

 

Non-interest expenses increased $153,000 to $9.5 million for the three months ended December 31, 2019 from $9.3 million for the three months ended December 31, 2018.  Non-interest expenses in the fourth quarter of 2018 included a restructuring charge of $875,000 consisting of accruals for workforce reduction costs as well as contractual costs associated with office space no longer being used in Andover following consolidation of mortgage banking operations. Excluding this non-recurring item, non-interest expenses in the fourth quarter of 2019 increased $1.0 million compared to the prior year period principally due to an increase in salaries and employee benefits of $783,000. This increase was caused by higher salaries and commissions associated with increased residential loan production of $166 million and higher incentive compensation costs, partially offset by lower transition payments to new loan originators, lower non-restructuring related severance costs and an increase in deferred loan origination costs.

 

Income tax expense of $21,000 and $17,000 for the three months ended December 31, 2019 and 2018, respectively, consists solely of a state income tax provision. The Company has a net operating loss (“NOL”) carryforward for federal tax purposes of $12.0 million. Since 2014, the NOL as well as other deferred tax assets have been subject to a full valuation allowance, which totaled $2.3 million at December 31, 2019. The valuation allowance for net deferred tax assets was reduced in 2019 principally due to the impact of the Company’s earnings on the NOL carryforward. We evaluate the tax valuation allowance on a quarterly basis. Based primarily on an assessment of historical operating results, we concluded that the tax valuation allowance should be maintained at December 31, 2019.

 

Year End Operating Results

Net interest income increased by $1.1 million, or 6.8%, for the year ended December 31, 2019 compared to the prior year. This increase was due to an increase in average interest-earning assets between periods of $65.4 million, or 12.1%, partially offset by a decrease in net interest margin of 15 basis points from 3.10% in 2018 to 2.95% in 2019. The decrease in net interest margin is due to a reduction in the ratio of average interest-earning assets to interest-bearing liabilities from 129.1% in 2018 to 125.5% in 2019, as well as an increase in the cost of deposits as more customers shift their funds to accounts offering more attractive interest rates.  

 

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

2


The Company did not recognize a provision for loan losses in 2019 while in 2018 it recognized a provision of $762,000. The principal reason that no provision was recognized in 2019 was the reduction in the loan portfolio of $14.8 million, while the provision in 2018 was principally attributable to loan portfolio growth of $84.1 million. Due to overall stability in both internal and external measures of credit risk, the general component of the allowance for loan losses remained largely unchanged in both years. The allowance for loan losses as a percentage of total loans was 0.90% and 0.91% at December 31, 2019 and 2018, respectively.

Non-interest income increased $8.0 million to $21.7 million for the year ended December 31, 2019 from $13.7 million for the year ended December 31, 2018. Non-interest income in 2018 included a gain of $2.5 million on the sale of buildings and a $90,000 insurance recovery. Excluding these non-recurring items, non-interest income increased $10.5 million in 2019 compared to the prior year due to an increase of $11.4 million, or 150.7%, in the gain on loan origination and sale activities. This increase was partially offset by a reduction in net loan servicing fees caused by a $920,000 decline in the fair value of certain MSRs. The increase in the gain on loan origination and sale activities in 2019 was a direct result of the addition of nearly 20 loan originators since mid-2018 and the boom in loan refinancing activity resulting from the decline in mortgage rates which began in the first quarter of the year. Together these factors resulted in a $511 million, or 133.5%, increase in loans sold in 2019 (excluding the sale of portfolio loans) compared to the prior year. The fair value adjustment for MSRs resulted from the acceleration of both actual and projected loan prepayments on serviced loans.

Non-interest expenses increased $4.3 million, or 13.5%, to $36.0 million for the year ended December 31, 2019 from $31.7 million for the year ended December 31, 2018.  Non-interest expenses in 2018 included a restructuring charge of $1.0 million consisting of accruals for workforce reduction costs as well as contractual costs associated with office space no longer being used in Andover following consolidation of mortgage banking operations. Excluding this non-recurring item, non-interest expenses in 2019 increased $5.2 million compared to the prior year principally due to an increase in salaries and employee benefits of $5.1 million, or 26.0%.  This increase was caused by higher salaries and commissions associated with increased residential loan production of $456.8 million, or 89.0%, and higher incentive compensation costs, partially offset by lower transition payments to new loan originators and non-restructuring related severance costs and an increase in deferred loan origination costs.  

Spending on marketing in 2019 was $174,000 less than the prior year due to additional advertising in 2018 associated with the re-branding to Envision Bank. The increase of $358,000 in other non-interest expenses in 2019 was driven by the increase in Envision Mortgage’s loan production and the donation of unused land to a charity.

 

Income tax expense of $118,000 and $31,000 for the years ended December 31, 2019 and 2018, respectively, consisted solely of a state income tax provision.

 

Balance Sheet

Total assets were $631.0 million at December 31, 2019 compared to $614.3 million at December 31, 2018, an increase of $16.7 million, or 2.7%. This growth resulted from an increase of $24.3 million in loans held for sale and an increase of $6.9 million in the investment portfolio, partially offset by a decrease of $14.7 million in portfolio loans. The increase in loans held for sale was a direct result of the 124.4% increase in residential loan production achieved in the fourth quarter of 2019 as compared to the prior year period. The decrease in portfolio loans occurred largely as a result of the transfer from portfolio of $28.6 million in residential mortgage loans to loans held for sale as well as prepayments of commercial and industrial loans. The increase in total assets was funded by non-brokered deposit growth of $29.6 million.

 

Net loans totaled $469.1 million at December 31, 2019, a decrease of $14.7 million, or 3.0%, from the balance at December 31, 2018.  This reduction occurred principally in commercial and industrial participation loans which decreased by $12.2 million due principally to significant prepayments during the year. No new loan participations were purchased in 2019. One-to four-family residential mortgage loans decreased by $2.0 million in 2019 due to the transfer of loans from portfolio to loans held for sale and by the sale of a higher proportion of residential mortgage originations into the secondary market. Consumer loans, which consist primarily of purchased loans, decreased by $3.8 million in 2019 as loan repayments exceeded loan purchases during the year. No purchases of student loans and unsecured consumer loans were made in 2019.

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

3


 

Deposits increased $59.9 million, or 13.7%, to $497.0 million at December 31, 2019 from $437.1 million at December 31, 2018. Included in this increase was $30.3 million of brokered deposits. Non-brokered deposits increased $29.6 million, or 7.9%, in 2019 despite deposit run-off of nearly $10.0 million following the December 2018 closing of the Boston branch. The growth in non-brokered deposits experienced in 2019 has occurred primarily in competitively priced savings and money market accounts.

 

Total stockholders’ equity was $78.5 million at December 31, 2019 compared to $78.0 million at December 31, 2018. The increase of $501,000 in 2019 was due to net income of $3.4 million, an increase in the fair value of available-for-sale securities of $1.5 million and equity adjustments of $1.2 million related to the stock benefit plan and employee stock ownership plan. These increases were partially offset by stock repurchases of $5.4 million as the Company repurchased 353,572 of its shares in 2019 at an average cost of $15.35 per share. The Bank’s tier one capital to average assets was 11.3% at December 31, 2019 compared to 10.9% at December 31, 2018. The Bank exceeded all regulatory capital requirements at December 31, 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, the efficiency ratio, 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.

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

4


Randolph Bancorp, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

Assets

 

Cash and due from banks

 

$

4,371

 

 

$

3,451

 

Interest-bearing deposits

 

 

3,881

 

 

 

3,667

 

Total cash and cash equivalents

 

 

8,252

 

 

 

7,118

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

490

 

 

 

2,205

 

Securities available for sale, at fair value

 

 

57,503

 

 

 

50,556

 

Loans held for sale, at fair value

 

 

62,792

 

 

 

38,474

 

Loans, net of allowance for loan losses of $4,280 in 2019 and $4,437 in 2018

 

 

469,131

 

 

 

483,846

 

Federal Home Loan Bank of Boston stock, at cost

 

 

2,417

 

 

 

4,700

 

Accrued interest receivable

 

 

1,393

 

 

 

1,504

 

Mortgage servicing rights, net

 

 

8,556

 

 

 

7,786

 

Premises and equipment, net

 

 

5,748

 

 

 

6,368

 

Bank-owned life insurance

 

 

8,441

 

 

 

8,256

 

Foreclosed real estate, net

 

 

-

 

 

 

65

 

Other assets

 

 

6,281

 

 

 

3,462

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

631,004

 

 

$

614,340

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

Deposits:

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

61,603

 

 

$

64,229

 

Interest bearing

 

 

344,581

 

 

 

312,321

 

Brokered

 

 

90,858

 

 

 

60,580

 

Total deposits

 

 

497,042

 

 

 

437,130

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank of Boston advances

 

 

44,403

 

 

 

89,036

 

Mortgagors' escrow accounts

 

 

2,052

 

 

 

2,129

 

Post-employment benefit obligations

 

 

2,464

 

 

 

2,551

 

Other liabilities

 

 

6,581

 

 

 

5,533

 

Total liabilities

 

 

552,542

 

 

 

536,379

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

 

 

56

 

 

 

60

 

Additional paid-in capital

 

 

51,127

 

 

 

55,608

 

Retained earnings

 

 

31,757

 

 

 

28,329

 

ESOP-Unearned compensation

 

 

(3,944

)

 

 

(4,132

)

Accumulated other comprehensive loss, net of tax

 

 

(534

)

 

 

(1,904

)

Total stockholders' equity

 

 

78,462

 

 

 

77,961

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

631,004

 

 

$

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 December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

5,841

 

 

$

5,624

 

 

$

23,631

 

 

$

19,541

 

Other interest and dividend income

 

 

378

 

 

 

426

 

 

 

1,600

 

 

 

1,743

 

Total interest and dividend income

 

 

6,219

 

 

 

6,050

 

 

 

25,231

 

 

 

21,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,828

 

 

 

1,630

 

 

 

7,398

 

 

 

4,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

4,391

 

 

 

4,420

 

 

 

17,833

 

 

 

16,696

 

Provision for loan losses

 

 

144

 

 

 

579

 

 

 

-

 

 

 

762

 

Net interest income after provision for loan losses

 

 

4,247

 

 

 

3,841

 

 

 

17,833

 

 

 

15,934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

353

 

 

 

368

 

 

 

1,407

 

 

 

1,464

 

Gain on loan origination and sale activities, net

 

 

5,462

 

 

 

2,183

 

 

 

18,900

 

 

 

7,539

 

Mortgage servicing fees, net

 

 

32

 

 

 

329

 

 

 

394

 

 

 

1,264

 

Gain on sale of buildings

 

 

-

 

 

 

2,261

 

 

 

-

 

 

 

2,476

 

Other

 

 

245

 

 

 

144

 

 

 

962

 

 

 

940

 

Total non-interest income

 

 

6,092

 

 

 

5,285

 

 

 

21,663

 

 

 

13,683

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

6,382

 

 

 

5,599

 

 

 

24,896

 

 

 

19,765

 

Occupancy and equipment

 

 

811

 

 

 

716

 

 

 

2,783

 

 

 

2,873

 

Professional fees

 

 

366

 

 

 

340

 

 

 

1,185

 

 

 

1,164

 

Marketing

 

 

322

 

 

 

274

 

 

 

967

 

 

 

1,141

 

Restructuring charges

 

 

-

 

 

 

875

 

 

 

-

 

 

 

968

 

Other non-interest expenses

 

 

1,609

 

 

 

1,533

 

 

 

6,119

 

 

 

5,761

 

Total non-interest expenses

 

 

9,490

 

 

 

9,337

 

 

 

35,950

 

 

 

31,672

 

Income (loss) before income taxes

 

 

849

 

 

 

(211

)

 

 

3,546

 

 

 

(2,055

)

Income tax expense

 

 

21

 

 

 

17

 

 

 

118

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

828

 

 

$

(228

)

 

$

3,428

 

 

$

(2,086

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.16

 

 

$

(0.04

)

 

$

0.64

 

 

$

(0.37

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

5,248,021

 

 

 

5,526,416

 

 

 

5,383,617

 

 

 

5,570,720

 


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 December 31,

 

 

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)

$

554,972

 

 

$

5,841

 

 

 

4.21

%

 

$

526,192

 

 

$

5,624

 

 

 

4.28

%

  Investment securities(2) (3)

 

50,290

 

 

 

367

 

 

 

2.92

%

 

 

58,055

 

 

 

403

 

 

 

2.78

%

  Interest-earning deposits

 

5,038

 

 

 

13

 

 

 

1.03

%

 

 

4,474

 

 

 

27

 

 

 

2.41

%

Total interest-earning assets

 

610,300

 

 

 

6,221

 

 

 

4.08

%

 

 

588,721

 

 

 

6,054

 

 

 

4.11

%

Noninterest-earning assets

 

32,250

 

 

 

 

 

 

 

 

 

 

 

28,310

 

 

 

 

 

 

 

 

 

Total assets

$

642,550

 

 

 

 

 

 

 

 

 

 

$

617,031

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Savings accounts

 

120,343

 

 

 

223

 

 

 

0.74

%

 

 

101,566

 

 

 

52

 

 

 

0.20

%

  NOW accounts

 

38,389

 

 

 

50

 

 

 

0.52

%

 

 

42,291

 

 

 

50

 

 

 

0.47

%

  Money market accounts

 

80,623

 

 

 

241

 

 

 

1.20

%

 

 

60,442

 

 

 

200

 

 

 

1.32

%

  Term certificates

 

200,123

 

 

 

1,068

 

 

 

2.13

%

 

 

162,570

 

 

 

693

 

 

 

1.71

%

Total interest-bearing deposits

 

439,478

 

 

 

1,582

 

 

 

1.44

%

 

 

366,869

 

 

 

995

 

 

 

1.08

%

  FHLBB advances

 

50,444

 

 

 

246

 

 

 

1.95

%

 

 

98,460

 

 

 

635

 

 

 

2.58

%

Total interest-bearing liabilities

 

489,922

 

 

 

1,828

 

 

 

1.49

%

 

 

465,329

 

 

 

1,630

 

 

 

1.40

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Noninterest-bearing deposits

 

62,674

 

 

 

 

 

 

 

 

 

 

 

66,608

 

 

 

 

 

 

 

 

 

  Other noninterest-bearing liabilities

 

9,337

 

 

 

 

 

 

 

 

 

 

 

6,851

 

 

 

 

 

 

 

 

 

Total liabilities

 

561,933

 

 

 

 

 

 

 

 

 

 

 

538,788

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

80,617

 

 

 

 

 

 

 

 

 

 

 

78,243

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

642,550

 

 

 

 

 

 

 

 

 

 

$

617,031

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

4,393

 

 

 

 

 

 

 

 

 

 

$

4,424

 

 

 

 

 

Interest rate spread(4)

 

 

 

 

 

 

 

 

 

2.58

%

 

 

 

 

 

 

 

 

 

 

2.71

%

Net interest-earning assets(5)

$

120,378

 

 

 

 

 

 

 

 

 

 

$

123,392

 

 

 

 

 

 

 

 

 

Net interest margin(6)

 

 

 

 

 

 

 

 

 

2.88

%

 

 

 

 

 

 

 

 

 

 

3.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

 

124.57

%

 

 

 

 

 

 

 

 

 

 

126.52

%

 

 

 

 

 

 

 

 

 

(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 $2,000 and $4,000 for the three months ended December 31, 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 Year Ended December 31,

 

 

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)

$

547,454

 

 

$

23,632

 

 

 

4.32

%

 

$

471,849

 

 

$

19,541

 

 

 

4.14

%

  Investment securities(2) (3)

 

52,953

 

 

 

1,521

 

 

 

2.87

%

 

 

61,566

 

 

 

1,658

 

 

 

2.69

%

  Interest-earning deposits

 

5,109

 

 

 

90

 

 

 

1.76

%

 

 

6,689

 

 

 

117

 

 

 

1.75

%

Total interest-earning assets

 

605,516

 

 

 

25,243

 

 

 

4.17

%

 

 

540,104

 

 

 

21,316

 

 

 

3.95

%

Noninterest-earning assets

 

27,903

 

 

 

 

 

 

 

 

 

 

 

26,621

 

 

 

 

 

 

 

 

 

Total assets

$

633,419

 

 

 

 

 

 

 

 

 

 

$

566,725

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Savings accounts

 

108,483

 

 

 

560

 

 

 

0.52

%

 

 

103,228

 

 

 

185

 

 

 

0.18

%

  NOW accounts

 

39,197

 

 

 

194

 

 

 

0.49

%

 

 

42,449

 

 

 

205

 

 

 

0.48

%

  Money market accounts

 

69,362

 

 

 

955

 

 

 

1.38

%

 

 

67,817

 

 

 

674

 

 

 

0.99

%

  Term certificates

 

178,901

 

 

 

3,619

 

 

 

2.02

%

 

 

132,984

 

 

 

2,006

 

 

 

1.51

%

Total interest-bearing deposits

 

395,943

 

 

 

5,328

 

 

 

1.35

%

 

 

346,478

 

 

 

3,070

 

 

 

0.89

%

  FHLBB advances

 

86,724

 

 

 

2,070

 

 

 

2.39

%

 

 

71,990

 

 

 

1,518

 

 

 

2.11

%

Total interest-bearing liabilities

 

482,667

 

 

 

7,398

 

 

 

1.53

%

 

 

418,468

 

 

 

4,588

 

 

 

1.10

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Noninterest-bearing deposits

 

62,314

 

 

 

 

 

 

 

 

 

 

 

62,350

 

 

 

 

 

 

 

 

 

  Other noninterest-bearing liabilities

 

8,845

 

 

 

 

 

 

 

 

 

 

 

6,295

 

 

 

 

 

 

 

 

 

Total liabilities

 

553,826

 

 

 

 

 

 

 

 

 

 

 

487,113

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

79,593

 

 

 

 

 

 

 

 

 

 

 

79,612

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

633,419

 

 

 

 

 

 

 

 

 

 

$

566,725

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

17,845

 

 

 

 

 

 

 

 

 

 

$

16,728

 

 

 

 

 

Interest rate spread(4)

 

 

 

 

 

 

 

 

 

2.64

%

 

 

 

 

 

 

 

 

 

 

2.85

%

Net interest-earning assets(5)

$

122,849

 

 

 

 

 

 

 

 

 

 

$

121,636

 

 

 

 

 

 

 

 

 

Net interest margin(6)

 

 

 

 

 

 

 

 

 

2.95

%

 

 

 

 

 

 

 

 

 

 

3.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

 

125.45

%

 

 

 

 

 

 

 

 

 

 

129.07

%