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Section 1: 8-K (8-K)

rndb-8k_20191022.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): October 22, 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 October 22, 2019, Randolph Bancorp, Inc. (the “Company”), the holding company for Envision Bank, issued a press release announcing its financial results for the three and nine months ended September 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 October 22, 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: October 22, 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

October 22, 2019

For More Information, Contact:

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

[email protected]

 

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

 

STOUGHTON, Massachusetts, October 22, 2019 – Randolph Bancorp, Inc. (the “Company”) (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the “Bank”), today announced net income of $1,144,000, or $0.21 per  share, for the three months ended September 30, 2019 compared to a net loss of $142,000, or $0.03 per share, for the three months ended September 30, 2018. Net income for the nine months ended September 30, 2019 was $2,599,000, or $0.48 per share, compared to a net loss of $1,859,000, or $0.33 per share, for the nine months ended September 30, 2018.  

 

At September 30, 2019, total assets amounted to $641.4 million compared to $652.6 million at June 30, 2019, a decrease of $11.2 million, or 1.7%. This decrease was due to the sale during the quarter ended September 30, 2019 of $28.6 million in residential mortgage loans which had been transferred from portfolio to loans held for sale in June 2019.

 

James P. McDonough, President and Chief Executive Officer, stated “The continuation of the favorable trend in mortgage rates during most of the third quarter resulted in a record level of loan production for Envision Mortgage. During the quarter, we closed $325.2 million in residential mortgage loans of which 96% has been designated for sale to investors. This record production level was fueled by loan refinancing activity which made up $188.3 million, or 58% of total production. Weekly loan applications have recently come down from their third quarter peak levels but continue to exceed activity experienced in recent years. Together these factors contributed to a $3.8 million, or 196%, increase in the gain on loan origination and sales activities in the third quarter of 2019 compared to the prior year quarter. We are optimistic that this higher production level will continue in the fourth quarter.”

 

Mr. McDonough added, “We are extremely proud of our entire mortgage banking team for their spirit of teamwork and commitment in meeting the needs of our residential loan customers during this unprecedented period of activity. Our team has consistently stepped-up to help our customers meet their scheduled loan closing dates. While investments in technology have been of great assistance, it has been the “human touch” which has made all the difference in achieving this record performance.”

 

“We are also extremely pleased with the early results of our initiatives to increase deposit growth”, Mr. McDonough noted. “During the third quarter of 2019, our non-brokered deposits increased $15.6 million, or 4.1%. We believe that our core checking account acquisition efforts working with a nationally recognized organization specializing in such programs, combined with our focus on competitively priced products for both consumer and business customers, position us well to sustain the momentum created during the third quarter.”

 

Third Quarter Operating Results

Net interest income increased by $313,000, or 7.3%, to $4.6 million for the three months ended September 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 $86.9 million, or 15.9%, as the Company continued to leverage the capital raised in its 2016 initial public offering. The net interest margin decreased in the third quarter of 2019 to 2.89% from 3.13% in the third 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 made no provision for loan losses for the three months ended September 30, 2019 while a provision of $178,000 was recorded for the three months ended September 30, 2018. No provision was required in the 2019 quarter due to modest loan growth and a small shift in the loan portfolio mix towards residential mortgage loans which generally carry lower credit risk than commercial and consumer loans. The provision in the 2018 quarter was directly attributable to growth in the residential loan portfolio. The allowance for loan losses was 0.90% and 0.91% of total loans at September 30, 2019 and December 31, 2018, respectively, and was 120.2% and 121.2% of non-performing loans at September 30, 2019 and December 31, 2018, respectively.

 

Non-interest income increased $3.1 million to $6.3 million for the three months ended September 30, 2019 from $3.2 million for the three months ended September 30, 2018 due to an increase of $3.8 million, or 195.6%, 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 173.8% increase in loans sold during the third quarter of 2019 as 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 of $522,000 as loan prepayment speeds were adjusted higher to reflect lower interest rates. In addition, a gain of $230,000 on the sale of a former branch office was recognized in the third quarter of 2018.

 

Non-interest expenses increased $2.3 million, or 30.8%, to $9.7 million for the three months ended September 30, 2019 from $7.4 million for the three months ended September 30, 2018.  Salaries and employee benefits increased $2.2 million, or 46.4%, between periods due to an increase in loan originator and sales manager commissions of $1.8 million, or 136.2%, as well as other compensation and payroll taxes attributable to Envision Mortgage’s increased loan production. Also contributing to the increase in salaries and employee benefits was $369,000 in additional incentive compensation associated with the improvement in the Company’s operating results. These increases were partially offset by an increase in deferred loan origination costs of $503,000.

 

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 $55,000 for the three months ended September 30, 2019 compared to the same period in the prior year. Marketing expenses increased $70,000 in the 2019 quarter compared to the 2018 quarter due to additional internet advertising and promotion cost associated with the checking account acquisition program. The increase in other non-interest expenses was driven by the increase in Envision Mortgage’s loan production and the donation of unused land, which were partially offset by lower spending on software licenses and data communication costs.

 

Income tax expense of $14,000 for the three months ended September 30, 2019 consists solely of a state income tax provision which is based on the projected effective state tax rate for the year.

 

The Company has a net operating loss carryforward (“NOL”) for federal tax purposes of $13.7 million. Since 2014, the NOL as well as other deferred tax assets have been subject to a full valuation allowance, which totaled $2.4 million at September 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 primarily on an assessment of historical operating results, we concluded that the valuation allowance should be maintained at September 30, 2019.

 

Year-to-Date Operating Results

Net interest income increased by $1.2 million, or 9.5%, for the nine months ended September 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 $88.2 million, or 16.9%, as the Company continued to leverage the capital raised in its 2016 initial public offering.  The net interest margin decreased in the first nine months of 2019 to 2.94% from 3.15% in the first nine months of 2018 due

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

2


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 nine months ended September 30, 2019 compared to a provision of $183,000 for the nine months ended September 30, 2018. The credit to the allowance in the 2019 period was primarily due to decreases in the loan portfolio attributable to the sale of residential mortgages loans which had been transferred from portfolio to loans held for sale and the repayment of a large commercial and industrial loan. The provision in the 2018 period was primarily due to $68.7 million of growth in the loan portfolio, partially offset by a reduction of $265,000 in the general component of the allowance for loan losses related primarily to commercial real estate loans and home equity loans.

Non-interest income increased $7.2 million to $15.6 million for the nine months ended September 30, 2019 from $8.4 million for the nine months ended September 30, 2018 due primarily to an increase of $8.1 million, or 150.9%, 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 104.5% increase in loans sold during the first nine months of 2019 as compared to the prior year period, and a fifteenfold increase in the year-to-date growth of the pipeline of interest rate lock agreements with customers between periods. 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 $636,000 as loan prepayment speeds were adjusted higher to reflect lower interest rates. In addition, a gain of $230,000 on the sale of a former branch office was recognized in the 2018 period.

Non-interest expenses increased $4.1 million, or 18.5%, to $26.5 million for the nine months ended September 30, 2019 from $22.3 million for the nine months ended September 30, 2018. Salaries and employee benefits increased $4.3 million, or 30.7%, between periods due to an increase in loan originator commissions and other compensation of $2.7 million, or 75.4%, as well as other compensation and payroll taxes attributable to Envision Mortgage’s increased loan production. Also contributing to the increase in salaries and employee benefits was $986,000 in additional incentive compensation and loan officer transition payments and, to a lesser extent, increased costs for health insurance, unemployment taxes and the defined contribution plan aggregating $394,000. These increases were partially offset by an increase in deferred loan origination costs of $859,000.

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 $185,000 for the nine months ended September 30, 2019 compared to the same period in the prior year. In addition, spending on marketing was reduced by $223,000 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 of $190,000 in other non-interest expenses was driven by the increase in Envision Mortgage’s loan production and the donation of unused land, which were partially offset by lower spending on software licenses and data communication costs.

 

State income taxes of $97,000 and $14,000 were provided during the nine months ended September 30, 2019 and 2018, respectively, based on the projected effective state tax rate for the year.

 

Balance Sheet

Total assets were $641.4 million at September 30, 2019 compared to $614.3 million at December 31, 2018, an increase of $27.1 million, or 4.4%. This growth resulted from an increase of $55.9 million in loans held for sale, partially offset by a decrease of $26.6 million in portfolio loans. The increase in loans held for sale was a direct result of the 76.2% increase in residential loan production achieved in 2019. The decrease in portfolio loans occurred largely as a result of the third quarter sale of $28.6 million in residential mortgage loans which had been transferred from portfolio to loans held for sale earlier

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

3


in the year. The increase in total assets was funded by deposit growth, including increases of $35.7 million and $18.0 million in brokered deposits and non-brokered deposits, respectively.

 

Net loans totaled $457.2 million at September 30, 2019, a decrease of $26.6 million, or 5.5%, 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 $7.3 million during the first nine months 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 have been purchased in 2019. Consumer loans, which consist primarily of purchased loans, decreased by a total of $2.8 million during the first nine months of 2019 as loan repayments exceeded loan purchases during the period. No purchases of student loans and unsecured consumer loans have been made in 2019.

 

Deposits increased $53.7 million, or 12.3%, to $490.8 million at September 30, 2019 from $437.1 million at December 31, 2018. Included in this increase was $35.7 million of brokered deposits. Non-brokered deposits increased $18.0 million, or 4.8%, during the first nine months of 2019 despite deposit run-off of $8.5 million following the December 2018 closing of the Boston branch. The growth in non-brokered deposits experienced to date in 2019 has occurred primarily in competitively priced savings and money market accounts.

 

Total stockholders’ equity was $79.6 million at September 30, 2019 compared to $78.0 million at December 31, 2018. The increase of $1.6 million during the first nine months of 2019 was due to net income of $2.6 million, an increase in the fair value of available-for-sale securities of $1.7 million and equity adjustments of $891,000 related to the stock benefit plan and employee stock ownership plan. These increases were partially offset by stock repurchases of $3.5 million as the Company repurchased 233,476 of its shares during the first nine months of 2019. The Company’s tier one capital to average assets was 12.3% at September 30, 2019 compared to 14.1% at December 31, 2018. The Bank exceeded all regulatory capital requirements at September 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, 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

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Randolph Bancorp, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

Assets

 

Cash and due from banks

 

$

6,525

 

 

$

3,451

 

Interest-bearing deposits

 

 

2,701

 

 

 

3,667

 

Total cash and cash equivalents

 

 

9,226

 

 

 

7,118

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

490

 

 

 

2,205

 

Securities available for sale, at fair value

 

 

47,187

 

 

 

50,556

 

Loans held for sale, at fair value

 

 

94,372

 

 

 

38,474

 

Loans, net of allowance for loan losses of $4,153 in 2019 and $4,437 in 2018

 

 

457,218

 

 

 

483,846

 

Federal Home Loan Bank of Boston stock, at cost

 

 

2,985

 

 

 

4,700

 

Accrued interest receivable

 

 

1,410

 

 

 

1,504

 

Mortgage servicing rights, net

 

 

8,459

 

 

 

7,786

 

Premises and equipment, net

 

 

5,911

 

 

 

6,368

 

Bank-owned life insurance

 

 

8,395

 

 

 

8,256

 

Foreclosed real estate, net

 

 

-

 

 

 

65

 

Other assets

 

 

5,785

 

 

 

3,462

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

641,438

 

 

$

614,340

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

Deposits:

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

65,250

 

 

$

64,229

 

Interest bearing

 

 

329,319

 

 

 

312,321

 

Brokered

 

 

96,261

 

 

 

60,580

 

Total deposits

 

 

490,830

 

 

 

437,130

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank of Boston advances

 

 

57,668

 

 

 

89,036

 

Mortgagors' escrow accounts

 

 

2,199

 

 

 

2,129

 

Post-employment benefit obligations

 

 

2,385

 

 

 

2,551

 

Other liabilities

 

 

8,765

 

 

 

5,533

 

Total liabilities

 

 

561,847

 

 

 

536,379

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Common stock

 

 

57

 

 

 

60

 

Additional paid-in capital

 

 

52,884

 

 

 

55,608

 

Retained earnings

 

 

30,928

 

 

 

28,329

 

ESOP-Unearned compensation

 

 

(3,991

)

 

 

(4,132

)

Accumulated other comprehensive loss, net of tax

 

 

(287

)

 

 

(1,904

)

Total stockholders' equity

 

 

79,591

 

 

 

77,961

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

641,438

 

 

$

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

6,144

 

 

$

5,036

 

 

$

17,791

 

 

$

13,917

 

Other interest and dividend income

 

 

397

 

 

 

432

 

 

 

1,221

 

 

 

1,317

 

Total interest and dividend income

 

 

6,541

 

 

 

5,468

 

 

 

19,012

 

 

 

15,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,968

 

 

 

1,208

 

 

 

5,570

 

 

 

2,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

4,573

 

 

 

4,260

 

 

 

13,442

 

 

 

12,276

 

Provision (credit) for loan losses

 

 

-

 

 

 

178

 

 

 

(144

)

 

 

183

 

Net interest income after provision (credit) for loan losses

 

 

4,573

 

 

 

4,082

 

 

 

13,586

 

 

 

12,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer service fees

 

 

363

 

 

 

357

 

 

 

1,053

 

 

 

1,096

 

Gain on loan origination and sale activities, net

 

 

5,782

 

 

 

1,956

 

 

 

13,438

 

 

 

5,356

 

Mortgage servicing fees, net

 

 

(181

)

 

 

310

 

 

 

362

 

 

 

935

 

Gain on sale of building

 

 

-

 

 

 

230

 

 

 

-

 

 

 

230

 

Gain on sales of securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

49

 

Other

 

 

339

 

 

 

355

 

 

 

718

 

 

 

732

 

Total non-interest income

 

 

6,303

 

 

 

3,208

 

 

 

15,571

 

 

 

8,398

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

7,010

 

 

 

4,788

 

 

 

18,514

 

 

 

14,166

 

Occupancy and equipment

 

 

673

 

 

 

728

 

 

 

1,972

 

 

 

2,157

 

Professional fees

 

 

264

 

 

 

252

 

 

 

819

 

 

 

824

 

Marketing

 

 

275

 

 

 

205

 

 

 

644

 

 

 

867

 

Other non-interest expenses

 

 

1,496

 

 

 

1,454

 

 

 

4,512

 

 

 

4,322

 

Total non-interest expenses

 

 

9,718

 

 

 

7,427

 

 

 

26,461

 

 

 

22,336

 

Income (loss) before income taxes

 

 

1,158

 

 

 

(137

)

 

 

2,696

 

 

 

(1,845

)

Income tax expense

 

 

14

 

 

 

5

 

 

 

97

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,144

 

 

$

(142

)

 

$

2,599

 

 

$

(1,859

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.21

 

 

$

(0.03

)

 

$

0.48

 

 

$

(0.33

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

5,345,786

 

 

 

5,567,596

 

 

 

5,429,339

 

 

 

5,585,571

 


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 September 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)

$

573,899

 

 

$

6,144

 

 

 

4.28

%

 

$

481,732

 

 

$

5,036

 

 

 

4.18

%

  Investment securities(2) (3)

 

53,947

 

 

 

377

 

 

 

2.80

%

 

 

58,864

 

 

 

410

 

 

 

2.79

%

  Interest-earning deposits

 

4,881

 

 

 

23

 

 

 

1.88

%

 

 

5,201

 

 

 

27

 

 

 

2.08

%

Total interest-earning assets

 

632,727

 

 

 

6,544

 

 

 

4.14

%

 

 

545,797

 

 

 

5,473

 

 

 

4.01

%

Noninterest-earning assets

 

14,757

 

 

 

 

 

 

 

 

 

 

 

27,994

 

 

 

 

 

 

 

 

 

Total assets

$

647,484

 

 

 

 

 

 

 

 

 

 

$

573,791

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Savings accounts

 

107,764

 

 

 

149

 

 

 

0.55

%

 

 

102,712

 

 

 

46

 

 

 

0.18

%

  NOW accounts

 

38,697

 

 

 

47

 

 

 

0.49

%

 

 

42,312

 

 

 

52

 

 

 

0.49

%

  Money market accounts

 

64,058

 

 

 

251

 

 

 

1.57

%

 

 

61,384

 

 

 

190

 

 

 

1.24

%

  Term certificates

 

182,073

 

 

 

918

 

 

 

2.02

%

 

 

153,239

 

 

 

577

 

 

 

1.51

%

Total interest-bearing deposits

 

392,592

 

 

 

1,365

 

 

 

1.39

%

 

 

359,647

 

 

 

865

 

 

 

0.96

%

  FHLBB advances

 

101,933

 

 

 

603

 

 

 

2.37

%

 

 

65,247

 

 

 

343

 

 

 

2.10

%

Total interest-bearing liabilities

 

494,525

 

 

 

1,968

 

 

 

1.59

%

 

 

424,894

 

 

 

1,208

 

 

 

1.14

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Noninterest-bearing deposits

 

62,456

 

 

 

 

 

 

 

 

 

 

 

63,396

 

 

 

 

 

 

 

 

 

  Other noninterest-bearing liabilities

 

10,138

 

 

 

 

 

 

 

 

 

 

 

6,231

 

 

 

 

 

 

 

 

 

Total liabilities

 

567,119

 

 

 

 

 

 

 

 

 

 

 

494,521

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

80,365

 

 

 

 

 

 

 

 

 

 

 

79,270

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

647,484

 

 

 

 

 

 

 

 

 

 

$

573,791

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

4,576

 

 

 

 

 

 

 

 

 

 

$

4,265

 

 

 

 

 

Interest rate spread(4)

 

 

 

 

 

 

 

 

 

2.55

%

 

 

 

 

 

 

 

 

 

 

2.87

%

Net interest-earning assets(5)

$

138,202

 

 

 

 

 

 

 

 

 

 

$

120,903

 

 

 

 

 

 

 

 

 

Net interest margin(6)

 

 

 

 

 

 

 

 

 

2.89

%

 

 

 

 

 

 

 

 

 

 

3.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

 

127.95

%

 

 

 

 

 

 

 

 

 

 

128.45

%

 

 

 

 

 

 

 

 

 

(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 $5,000 for the three months ended September 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 Nine Months Ended September 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)

$

549,665

 

 

$

17,791

 

 

 

4.32

%

 

$

453,290

 

 

$

13,917

 

 

 

4.09

%

  Investment securities(2) (3)

 

54,350

 

 

 

1,154

 

 

 

2.83

%

 

 

60,225

 

 

 

1,254

 

 

 

2.78

%

  Interest-earning deposits

 

5,132

 

 

 

77

 

 

 

2.00

%

 

 

7,442

 

 

 

91

 

 

 

1.63

%

Total interest-earning assets

 

609,147

 

 

 

19,022

 

 

 

4.16

%

 

 

520,957

 

 

 

15,262

 

 

 

3.91

%

Noninterest-earning assets

 

21,228

 

 

 

 

 

 

 

 

 

 

 

28,997

 

 

 

 

 

 

 

 

 

Total assets

$

630,375

 

 

 

 

 

 

 

 

 

 

$

549,954

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Savings accounts

 

104,530

 

 

 

337

 

 

 

0.43

%

 

 

103,774

 

 

 

133

 

 

 

0.17

%

  NOW accounts

 

39,466

 

 

 

144

 

 

 

0.49

%

 

 

43,215

 

 

 

166

 

 

 

0.51

%

  Money market accounts

 

65,609

 

 

 

712

 

 

 

1.45

%

 

 

66,241

 

 

 

461

 

 

 

0.93

%

  Term certificates

 

171,827

 

 

 

2,552

 

 

 

1.98

%

 

 

126,452

 

 

 

1,314

 

 

 

1.39

%

Total interest-bearing deposits

 

381,432

 

 

 

3,745

 

 

 

1.31

%

 

 

339,682

 

 

 

2,074

 

 

 

0.81

%

  FHLBB advances

 

98,817

 

 

 

1,825

 

 

 

2.46

%

 

 

63,089

 

 

 

884

 

 

 

1.87

%

Total interest-bearing liabilities

 

480,249

 

 

 

5,570

 

 

 

1.55

%

 

 

402,771

 

 

 

2,958

 

 

 

0.98

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Noninterest-bearing deposits

 

62,194

 

 

 

 

 

 

 

 

 

 

 

61,005

 

 

 

 

 

 

 

 

 

  Other noninterest-bearing liabilities

 

8,681

 

 

 

 

 

 

 

 

 

 

 

6,110

 

 

 

 

 

 

 

 

 

Total liabilities

 

551,124

 

 

 

 

 

 

 

 

 

 

 

469,886

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

79,251

 

 

 

 

 

 

 

 

 

 

 

80,068

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

630,375

 

 

 

 

 

 

 

 

 

 

$

549,954

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

13,452

 

 

 

 

 

 

 

 

 

 

$

12,304

 

 

 

 

 

Interest rate spread(4)

 

 

 

 

 

 

 

 

 

2.61

%

 

 

 

 

 

 

 

 

 

 

2.93

%

Net interest-earning assets(5)

$

128,898

 

 

 

 

 

 

 

 

 

 

$

118,186

 

 

 

 

 

 

 

 

 

Net interest margin(6)

 

 

 

 

 

 

 

 

 

2.94

%

 

 

 

 

 

 

 

 

 

 

3.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

 

126.84

%

 

 

 

 

 

 

 

 

 

 

129.34

%