QUINCY, Mass., April 26, 2022 (GLOBE NEWSWIRE) -- Randolph Bancorp, Inc. (the "Company" or "Randolph") (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the "Bank"), today announced a net loss of $235,000, or $0.05 per basic share and diluted share, for the three months ended March 31, 2022 compared to net income of $786,000, or $0.17 per basic share and $0.16 per diluted share, for the three months ended December 31, 2021 and net income of $4.1 million, or $0.81 per basic share and $0.78 per diluted share, for the three months ended March 31, 2021. Excluding one-time events of $240,000 in severance expenses, $588,000 in merger expenses, and $290,000 for the reversal of a cease use liability, net income on a non-GAAP basis was $318,000, or $0.06 per diluted share, for the three months ended March 31, 2022. Excluding one-time events of $26,000 in severance expenses and $55,000 in loss on disposal of fixed assets, net income on a non-GAAP basis was $844,000, or $0.17 per diluted share, for the three months ended December 31, 2021. Excluding one-time charges of $109,000 in severance expenses, net income on a non-GAAP basis for the three months ended March 31, 2021 was $4.2 million, or $0.79 per diluted share.

At March 31, 2022, total assets were $770.3 million, compared to $803.3 million at December 31, 2021, a decrease of $33.0 million, or 4.1%. Total loans increased by $35.0 million, or 6.4%, to $584.8 million at March 31, 2022 from $549.8 million at December 31, 2021, and loans held for sale decreased by $22.1 million to $22.7 million at March 31, 2022 from $44.8 million at December 31, 2021. Cash and cash equivalents decreased by $44.4 million, or 38.4%, to $71.1 million at March 31, 2022, from $115.4 million as of December 31, 2021, as a result of decreases in brokered deposits and Federal Home Loan Bank of Boston ("FHLBB") advances of $17.0 million and $5.0 million, respectively, in the quarter, dividends paid of $11.2 million, and net loan growth of $35.0 million, partially offset by a decrease in loans held for sale of $22.1 million. Compared to March 31, 2021, total assets grew $32.1 million, or 4.3%, from $738.2 million. The growth from the prior year period was driven by increases in total loans of $87.0 million, or 17.5%, and cash and cash equivalents of $16.1 million, or 29.3%, partially offset by a decrease in loans held for sale of $70.5 million, or 75.6%.

William M. Parent, President and Chief Executive Officer, stated, "In the first quarter, we saw many challenges in the mortgage banking environment, as the extent and pace of interest rate increases, and the slower winter season negatively impacted residential lending production and mortgage banking profitability. We are excited by the recently announced merger with Hometown Financial Group, Inc. and look forward to the anticipated closing of that transaction in the fourth quarter of 2022. I want to thank all of our employees who continue to contribute to the ongoing improvement of our company and their commitment to our customers."

First Quarter Operating Results

Net interest income decreased by $427,000, or 7.5%, to $5.3 million for the three months ended March 31, 2022 from $5.7 million for the three months ended December 31, 2021. This decrease was primarily due to a 14.1% decrease in average balances of 1-4 family residential loans, as a result of declining loans held for sale and the full quarter impact of a $35.6 million sale from portfolio occurring late in the fourth quarter of 2021 and a $52,000 decline in accretion of fees earned from the Small Business Administration's Paycheck Protection Program ("SBA PPP") to $106,000 in the first quarter of 2022. The yield earned on interest-earning assets decreased by 28 basis points from the prior quarter due to the change in asset mix, while the rate paid on interest-bearing liabilities was unchanged from the prior quarter. Accordingly, the net interest margin decreased by 28 basis points, to 2.86% in the first quarter of 2022 from 3.14% in the fourth quarter of 2021.

Net interest income increased by $176,000, or 3.5%, to $5.3 million for the three months ended March 31, 2022, from $5.1 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin decreased by 14 basis points to 2.86%, from 3.00%. The improvement in net interest income primarily reflects a decrease in the cost of interest-bearing liabilities of 19 basis points from the prior year quarter.

The Company recognized a provision for loan losses of $71,000 for the quarter ended March 31, 2022, driven by loan growth. The allowance for loan losses was 1.09%, 1.14% and 1.32% of total loans at March 31, 2022, December 31, 2021 and March 31, 2021, respectively, and was 237.2%, 239.7% and 79.0% of non-performing assets at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

Non-interest income decreased $2.3 million, or 51.7%, to $2.2 million for the quarter ended March 31, 2022 from $4.5 million in the quarter ended December 31, 2021, due to a decrease of $2.5 million in the net gain on loan origination and sale activities. Sold mortgages totaled $129.9 million in the first quarter of 2022, compared to $297.3 million in the fourth quarter of 2021. The first quarter of 2022 ended with a mortgage pipeline of $42.7 million, compared to a pipeline of $85.9 million at the end of the fourth quarter of 2021, and loans held for sale were $22.7 million as of March 31, 2022, compared to $44.8 million as of December 31, 2021. Decreasing sales volumes and declines in the fair value of loans held for sale, reflecting rising interest rates and seasonality, contributed to the erosion in the gain on loan origination and sale activities from the prior quarter. Mortgage servicing fees increased $91,000, or 35.4%, to $348,000 for the first quarter of 2022 from $257,000 in the fourth quarter of 2021 as a result of a release to the valuation allowance of mortgage loan servicing rights of $135,000 in the first quarter of 2022, compared to a release of $43,000 in the fourth quarter of 2021, as interest rates increased at an accelerated pace in the first quarter of 2022.

Non-interest income decreased $10.2 million, or 82.4%, to $2.2 million for the quarter ended March 31, 2022 from $12.4 million for the quarter ended March 31, 2021, principally due to a decrease of $9.7 million in the net gain on loan origination and sale activities. Sold mortgage loans totaled $129.9 million in the first quarter of 2022, compared to $503.3 million in the first quarter of 2021. The first quarter of 2022 ended with a mortgage pipeline of $42.7 million, compared to a pipeline of $239.5 million at the end of the first quarter of 2021. Mortgage servicing fees decreased $431,000 in the quarter ended March 31, 2022, relative to the prior year quarter, principally due to $315,000 in sub-servicer expenses incurred during the first quarter of 2022, as well as a decline in the release to the valuation allowance of mortgage loan servicing rights to $135,000 in the quarter ended March 31, 2022, compared to a release of $421,000 in the quarter ended March 31, 2021.

Non-interest expenses decreased $515,000, or 5.6%, in the quarter ended March 31, 2022 from $9.2 million in the quarter ended December 31, 2021. The decrease was due to a reduction in salaries and employee benefits expense of $930,000, or 15.3%, primarily attributed to lower commissions and incentives associated with lower residential loan production and by reductions in headcount related to the Company's reduction in force initiative during the first quarter of 2022. Occupancy and equipment expenses decreased $348,000, or 48.8%, primarily due to the reversal of a cease use liability of $290,000 during the quarter. The decreases in salaries and employee benefits expenses and occupancy and equipment expenses were partially offset by severance expenses of $240,000 and increases to professional fees of $700,000, or 215.4%, as a result of $588,000 in merger expenses, in addition to seasonal increases in professional fees for annual reporting requirements.

Non-interest expenses decreased $3.2 million, or 27.2%, to $8.7 million in the quarter ended March 31, 2022 from $12.0 million in the quarter ended March 31, 2021. The decrease was principally due to a decrease in salaries and employee benefits of $3.3 million, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production and reduced headcount. The decreases in salaries and benefits expenses and occupancy and equipment expenses were partially offset by severance related costs $240,000 and merger expenses of $588,000 during the first quarter of 2022.

The income tax benefit was $1.1 million for the three months ended March 31, 2022, compared to an income tax expense of $330,000 for the three months ended December 31, 2021 and $1.7 million for the three months ended March 31, 2021. Non-qualified stock option exercises during the quarter contributed to the income tax benefit, in addition to the net loss generated during the quarter.

Balance Sheet

At March 31, 2022, total assets amounted to $770.3 million, compared to $803.3 million at December 31, 2021, a decrease of $33.0 million, or 4.1%. A $44.4 million decrease in cash and cash equivalents and a $22.1 million decrease in loans held for sale from the prior quarter were partially offset by a $35.0 million increase in net loans. The increase in net loans was primarily the result of a $35.4 million increase in 1-4 family residential loans from the prior quarter and a $1.8 million increase in commercial real estate loans, partially offset by decreases in construction and commercial and industrial loans. Deposits decreased by $13.5 million, or 2.1%, in the quarter, due to a $17.0 million decrease in brokered deposits, partially offset by an increase of $4.4 million in savings accounts and $2.2 million in money market accounts, as the Company managed its excess liquidity and the cost of its funding base.

Total assets at March 31, 2022 increased $32.1 million, or 4.3%, to $770.3 million from $738.2 million at March 31, 2021. Contributing to asset growth was an $87.6 million, or 17.7%, increase in net loans to $579.6 million at March 31, 2022 from $492.0 million at March 31, 2021. Cash and cash equivalents increased by $16.1 million, or 29.3%, to $71.1 million at March 31, 2022 from $55.0 million at March 31, 2021, principally due an increase of $64.4 million, or 11.5%, of deposits. Commercial real estate loans increased by $52.3 million, or 35.6%, as we focus on diversifying our loan mix. FHLBB advances decreased by $15.0 million to $45.0 million at March 31, 2022, from $60.0 million at March 31, 2021.

Total stockholders' equity was $88.5 million at March 31, 2022 compared to $100.9 million at December 31, 2021. The decrease of $12.4 million reflects a net loss of $235,000, dividends of $11.2 million, a $1.8 million change in accumulated other comprehensive loss, net of taxes, as a result of the impact of increasing interest rates on available for sale securities, and share repurchases of $1.3 million, partially offset by proceeds from the exercise of options of $1.8 million and stock-based compensation of $284,000.

Total stockholders' equity was $88.5 million at March 31, 2022 compared to $100.9 million at March 31, 2021. The decrease of $12.4 million relates mainly to dividends of $12.0 million, share repurchases of $7.0 million, and a change in accumulated other comprehensive loss, net of taxes, of $2.1 million, partially offset by net income over the past twelve months of $5.3 million, proceeds from the exercise of options of $2.0 million and stock-based compensation over the past twelve months of $1.2 million.

Proposed Transaction with Hometown Financial

On March 28, 2022, the Company and Hometown Financial Group, Inc. ("Hometown") entered into an Agreement and Plan of Merger pursuant to which, through a series of transactions, Hometown will acquire the Company in a cash transaction for total consideration valued at approximately $146.5 million. Under the terms of the Agreement and Plan of Merger, Company shareholders will receive $27.00 for each share of Company common stock. The transaction is expected to close in the fourth quarter of 2022 and is subject to customary closing conditions, including approval by the shareholders of the Company and required regulatory approvals.

Additional information about the transaction can be found in the joint press release issued on March 28, 2022, which is available on the Company's website at www.randolphbancorp.com.

Additional Information about the Proposed Transaction and Where to Find It

In connection with the proposed merger, the Company will file a proxy statement with the Securities and Exchange Commission ("SEC"). Hometown will also file relevant materials in connection with its proposed acquisition of the Company. Shareholders of the Company are urged to read the proxy statement and other relevant documents and any amendments or supplements to those documents, because they will contain important information which should be considered before making any decision regarding the transaction. A free copy of the proxy statement, as well as other filings containing information about the Company and Hometown, when they become available, may be obtained at the SEC's Internet site (http://www.sec.gov). Copies of the proxy statement may also be obtained, free of charge, from the Company's website at www.RandolphBancorp.com under the "SEC Filings" tab or by directing a request to:

Lauren Messmore

Executive Vice President and CFO

Randolph Bancorp, Inc.

2 Batterymarch Park, Suite 301

Quincy, MA 02169

Participants in the Solicitation

The Company and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company's shareholders in connection with the merger. Information about the Company's directors and executive officers is set forth in the proxy statement for the Company's 2021 annual meeting of shareholders, as filed with the Securities and Exchange Commission on April 9, 2021 and other relevant documents regarding the proposed merger to be filed with the SEC. Free copies of these documents may be obtained as described in the preceding paragraph.

The information available through Randolph's website is not and shall not be incorporated by reference into this or other filings that the Company makes with the SEC.

About Randolph Bancorp, Inc.

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

Forward Looking Statements

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words "believe", "expect", "anticipate", "intend", "estimate", "assume", "outlook", "will", "should", and other expressions that predict or indicate future events and trends and which do not relate to historical matters. 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, failure to obtain necessary regulatory approvals for the proposed transaction with Hometown; failure to obtain shareholder approvals or to satisfy any of the conditions to the proposed transaction with Hometown on a timely basis or at all or other delays in completing the merger; the reputational risks and the reaction of Randolph's customers to the proposed transaction; ongoing disruptions due to the COVID-19 pandemic and the measures taken to contain its spread on the Company's employees, customers, business operations, credit quality, financial position, liquidity and results of operations; changes in the general business and economic conditions on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers' ability to service and repay the Company's loans; changes in consumer behavior due to changing political, business and economic conditions or legislative or regulatory initiatives; reputational risk relating to the Company's participation in the SBA PPP and other pandemic-related legislative and regulatory initiatives and programs; turbulence in the capital and debt markets and the impact of such conditions on the Company's business activities; and the risk factors described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

Non-GAAP Financial Measures

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

Randolph Bancorp, Inc.

Consolidated Balance Sheet

(Dollars in thousands)

(Unaudited)

										% Change
	March 31,			December 31,			March 31,			Mar 2022 vs.			Mar 2022 vs.
	2022			2021			2021			Dec 2021			Mar 2021
Assets
Cash and cash equivalents	$	71,072		$	115,449		$	54,950			(38.4	)%		29.3	%
Securities available for sale, at fair value		48,836			51,666			54,148			(5.5	)%		(9.8	)%
Loans held for sale, at fair value		22,698			44,766			93,176			(49.3	)%		(75.6	)%
Loans:
1-4 family residential		271,755			236,364			239,190			15.0	%		13.6	%
Home equity		58,501			57,295			49,073			2.1	%		19.2	%
Commercial real estate		199,255			197,423			146,930			0.9	%		35.6	%
Construction		32,544			33,961			29,975			(4.2	)%		8.6	%
Total real estate loans		562,055			525,043			465,168			7.0	%		20.8	%
Commercial and industrial		15,478			17,242			23,869			(10.2	)%		(35.2	)%
Consumer		7,267			7,552			8,724			(3.8	)%		(16.7	)%
Total loans		584,800			549,837			497,761			6.4	%		17.5	%
Allowance for loan losses		(6,357	)		(6,289	)		(6,563	)		1.1	%		(3.1	)%
Net deferred loan costs and fees, and purchase premiums		1,148			1,073			785			7.0	%		46.2	%
Loans, net		579,591			544,621			491,983			6.4	%		17.8	%
Federal Home Loan Bank of Boston stock, at cost		2,734			2,940			3,576			(7.0	)%		(23.5	)%
Accrued interest receivable		1,434			1,500			1,501			(4.4	)%		(4.5	)%
Mortgage servicing rights, net		15,378			15,616			14,744			(1.5	)%		4.3	%
Premises and equipment, net		7,718			7,684			4,709			0.4	%		63.9	%
Bank-owned life insurance		8,824			8,784			8,662			0.5	%		1.9	%
Foreclosed real estate, net		-			-			132		-		%		(100.0	)%
Other assets		11,999			10,252			10,607			17.0	%		13.1	%
Total assets	$	770,284		$	803,278		$	738,188			(4.1	)%		4.3	%

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	142,793		$	145,666		$	118,623			(2.0	)%		20.4	%
Savings accounts		196,145			191,712			192,712			2.3	%		1.8	%
NOW accounts		53,329			53,996			62,772			(1.2	)%		(15.0	)%
Money market accounts		92,769			90,544			78,236			2.5	%		18.6	%
Term certificates		106,515			106,112			75,690			0.4	%		40.7	%
Interest bearing brokered		33,128			50,117			32,225			(33.9	)%		2.8	%
Total deposits		624,679			638,147			560,258			(2.1	)%		11.5	%
Federal Home Loan Bank of Boston advances		45,000			50,000			60,024			(10.0	)%		(25.0	)%
Mortgagors' escrow accounts		2,773			2,128			1,924			30.3	%		44.1	%
Post-employment benefit obligations		2,064			2,222			2,235			(7.1	)%		(7.7	)%
Other liabilities		7,290			9,878			12,888			(26.2	)%		(43.4	)%
Total liabilities		681,806			702,375			637,329			(2.9	)%		7.0	%
Stockholders' Equity:
Common stock		52			50			53			4.0	%		(1.9	)%
Additional paid-in capital		44,904			44,078			48,613			1.9	%		(7.6	)%
Retained earnings		49,042			60,524			55,801			(19.0	)%		(12.1	)%
ESOP-Unearned compensation		(3,521	)		(3,568	)		(3,709	)		(1.3	)%		(5.1	)%
Accumulated other comprehensive income (loss), net of tax		(1,999	)		(181	)		101			1004.4	%		(2079.2	)%
Total stockholders' equity		88,478			100,903			100,859			(12.3	)%		(12.3	)%
Total liabilities and stockholders' equity	$	770,284		$	803,278		$	738,188			(4.1	)%		4.3	%

Randolph Bancorp, Inc.

Consolidated Balance Sheet Trend

(Dollars in thousands)

(Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021
Assets
Cash and cash equivalents	$	71,072		$	115,449		$	12,876		$	34,876		$	54,950
Securities available for sale, at fair value		48,836			51,666			51,725			50,212			54,148
Loans held for sale, at fair value		22,698			44,766			75,400			74,277			93,176
Loans:
1-4 family residential		271,755			236,364			265,561			263,992			239,190
Home equity		58,501			57,295			56,124			50,555			49,073
Commercial real estate		199,255			197,423			185,100			167,691			146,930
Construction		32,544			33,961			34,479			29,140			29,975
Total real estate loans		562,055			525,043			541,264			511,378			465,168
Commercial and industrial		15,478			17,242			19,896			25,826			23,869
Consumer		7,267			7,552			8,860			9,194			8,724
Total loans		584,800			549,837			570,020			546,398			497,761
Allowance for loan losses		(6,357	)		(6,289	)		(6,432	)		(6,523	)		(6,563	)
Net deferred loan costs and fees, and purchase premiums		1,148			1,073			1,031			785			785
Loans, net		579,591			544,621			564,619			540,660			491,983
Federal Home Loan Bank of Boston stock, at cost		2,734			2,940			3,239			2,855			3,576
Accrued interest receivable		1,434			1,500			1,763			1,523			1,501
Mortgage servicing rights, net		15,378			15,616			15,402			15,375			14,744
Premises and equipment, net		7,718			7,684			6,462			5,115			4,709
Bank-owned life insurance		8,824			8,784			8,744			8,703			8,662
Foreclosed real estate, net		-			-			-			-			132
Other assets		11,999			10,252			10,867			10,546			10,607
Total assets	$	770,284		$	803,278		$	751,097		$	744,142		$	738,188

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	142,793		$	145,666		$	134,058		$	124,683		$	118,623
Savings accounts		196,145			191,712			188,346			190,584			192,712
NOW accounts		53,329			53,996			53,804			51,059			62,772
Money market accounts		92,769			90,544			73,562			73,967			78,236
Term certificates		106,515			106,112			73,519			74,631			75,690
Interest bearing brokered		33,128			50,117			50,116			57,059			32,225
Total deposits		624,679			638,147			573,405			571,983			560,258
Federal Home Loan Bank of Boston advances		45,000			50,000			62,900			50,016			60,024
Mortgagors' escrow accounts		2,773			2,128			1,905			1,783			1,924
Post-employment benefit obligations		2,064			2,222			2,182			2,226			2,235
Other liabilities		7,290			9,878			10,108			17,424			12,888
Total liabilities		681,806			702,375			650,500			643,432			637,329
Stockholders' Equity:
Common stock		52			50			50			52			53
Additional paid-in capital		44,904			44,078			43,574			46,740			48,613
Retained earnings		49,042			60,524			60,504			57,378			55,801
ESOP-Unearned compensation		(3,521	)		(3,568	)		(3,615	)		(3,662	)		(3,709	)
Accumulated other comprehensive income (loss), net of tax		(1,999	)		(181	)		84			202			101
Total stockholders' equity		88,478			100,903			100,597			100,710			100,859
Total liabilities and stockholders' equity	$	770,284		$	803,278		$	751,097		$	744,142		$	738,188

Randolph Bancorp, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share amounts)

(Unaudited)

	Three Months Ended									% Change
	March 31,			December 31,			March 31,			Mar 2022 vs.			Mar 2022 vs.
	2022			2021			2021			Dec 2021			Mar 2021
Interest and dividend income:
Loans	$	5,467		$	5,923		$	5,508			(7.7	)%		(0.7	)%
Securities-taxable		216			217			240			(0.5	)%		(10.0	)%
Securities-tax exempt		4			4			6			0.0	%		(33.3	)%
Interest-bearing deposits and certificates of deposit		42			13			7			223.1	%		500.0	%
Total interest and dividend income		5,729			6,157			5,761			(7.0	)%		(0.6	)%

Interest expense:
Deposits		315			308			438			2.3	%		(28.1	)%
Borrowings		147			155			232			(5.2	)%		(36.6	)%
Total interest expense		462			463			670			(0.2	)%		(31.0	)%

Net interest income		5,267			5,694			5,091			(7.5	)%		3.5	%
Provision (credit) for loan losses		71			(108	)		(213	)		(165.7	)%		(133.3	)%
Net interest income after provision (credit) for loan losses		5,196			5,802			5,304			(10.4	)%		(2.0	)%

Non-interest income:
Customer service fees		365			422			367			(13.5	)%		(0.5	)%
Gain on loan origination and sale activities, net		1,264			3,723			10,993			(66.0	)%		(88.5	)%
Mortgage servicing fees, net		348			257			779			35.4	%		(55.3	)%
Increase in cash surrender value of life insurance		40			41			40			(2.4	)%		0.0	%
Other		175			92			244			90.2	%		(28.3	)%
Total non-interest income		2,192			4,535			12,423			(51.7	)%		(82.4	)%
Non-interest expenses:
Salaries and employee benefits		5,154			6,084			8,437			(15.3	)%		(38.9	)%
Occupancy and equipment		365			713			744			(48.8	)%		(50.9	)%
Data processing		345			237			263			45.6	%		31.2	%
Professional fees		1,025			325			561			215.4	%		82.7	%
Marketing		157			245			170			(35.9	)%		(7.6	)%
FDIC insurance		58			55			54			5.5	%		7.4	%
Other non-interest expenses		1,602			1,562			1,722			2.6	%		(7.0	)%
Total non-interest expenses		8,706			9,221			11,951			(5.6	)%		(27.2	)%
Income (loss) before income taxes		(1,318	)		1,116			5,776			(218.1	)%		(122.8	)%
Income tax expense (benefit)		(1,083	)		330			1,664			(428.2	)%		(165.1	)%
Net income (loss)	$	(235	)	$	786		$	4,112			(129.9	)%		(105.7	)%

Net income (loss) per share:
Basic	$	(0.05	)	$	0.17		$	0.81
Diluted	$	(0.05	)	$	0.16		$	0.78

Weighted average shares outstanding:
Basic		4,815,325			4,743,833			5,056,165
Diluted		5,014,538			4,993,750			5,254,907

Dividends declared per share	$	2.15		$	0.15		$	-

Randolph Bancorp, Inc.

Consolidated Statements of Operations Trend

(Dollars in thousands except per share amounts)

(Unaudited)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021
Interest and dividend income:
Loans	$	5,467		$	5,923		$	6,226		$	5,505		$	5,508
Securities-taxable		216			217			219			223			240
Securities-tax exempt		4			4			4			6			6
Interest-bearing deposits and certificates of deposit		42			13			4			8			7
Total interest and dividend income		5,729			6,157			6,453			5,742			5,761

Interest expense:
Deposits		315			308			299			345			438
Borrowings		147			155			178			198			232
Total interest expense		462			463			477			543			670

Net interest income		5,267			5,694			5,976			5,199			5,091
Provision (credit) for loan losses		71			(108	)		(90	)		(27	)		(213	)
Net interest income after provision (credit) for loan losses		5,196			5,802			6,066			5,226			5,304

Non-interest income:
Customer service fees		365			422			410			419			367
Gain on loan origination and sale activities, net		1,264			3,723			7,229			5,740			10,993
Mortgage servicing fees, net		348			257			274			381			779
Increase in cash surrender value of life insurance		40			41			41			41			40
Other		175			92			195			235			244
Total non-interest income		2,192			4,535			8,149			6,816			12,423
Non-interest expenses:
Salaries and employee benefits		5,154			6,084			6,381			7,310			8,437
Occupancy and equipment		365			713			714			621			744
Data processing		345			237			367			301			263
Professional fees		1,025			325			490			323			561
Marketing		157			245			134			200			170
FDIC insurance		58			55			54			54			54
Other non-interest expenses		1,602			1,562			1,719			1,818			1,722
Total non-interest expenses		8,706			9,221			9,859			10,627			11,951
Income (loss) before income taxes		(1,318	)		1,116			4,356			1,415			5,776
Income tax expense (benefit)		(1,083	)		330			1,230			(162	)		1,664
Net income (loss)	$	(235	)	$	786		$	3,126		$	1,577		$	4,112

Net income (loss) per share:
Basic	$	(0.05	)	$	0.17		$	0.64		$	0.32		$	0.81
Diluted	$	(0.05	)	$	0.16		$	0.62		$	0.31		$	0.78

Weighted average shares outstanding:
Basic		4,815,325			4,743,833			4,869,155			4,921,182			5,056,165
Diluted		5,014,538			4,993,750			5,074,676			5,135,582			5,254,907

Dividends declared per share	$	2.15		$	0.15		$	-		$	-		$	-

Randolph Bancorp, Inc.

Average Balances/Yields

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31, 2022								December 31, 2021								March 31, 2021
	Average			Interest		Average			Average			Interest		Average			Average			Interest		Average
	Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/			Outstanding			Earned/		Yield/
(Dollars in thousands)	Balance			Paid		Rate ⁽⁷⁾			Balance			Paid		Rate ⁽⁷⁾			Balance			Paid		Rate ⁽⁷⁾
Interest-earning assets:
Loans:
1-4 family residential ⁽¹⁾	$	274,883		$	2,400		3.54	%	$	319,855		$	2,790		3.46	%	$	336,805		$	2,974		3.58	%
Home equity		57,046			470		3.34	%		57,183			480		3.33	%		48,383			433		3.63	%
Commercial real estate		197,330			1,921		3.95	%		186,943			1,880		3.99	%		146,683			1,406		3.89	%
Construction		32,734			296		3.67	%		34,246			331		3.83	%		30,350			295		3.94	%
Total real estate loans		561,993			5,087		3.67	%		598,227			5,481		3.63	%		562,221			5,108		3.68	%
Commercial and industrial		16,631			277		6.75	%		18,311			331		7.17	%		21,860			274		5.08	%
Consumer		7,617			103		5.48	%		8,313			111		5.30	%		9,940			126		5.14	%
Total loans		586,241			5,467		3.78	%		624,851			5,923		3.76	%		594,021			5,508		3.76	%
Investment securities^{(2) (3)}		52,930			221		1.69	%		54,314			222		1.62	%		57,818			247		1.73	%
Interest-earning deposits		107,866			42		0.16	%		41,161			13		0.13	%		35,492			7		0.08	%
Total interest-earning assets		747,037			5,730		3.11	%		720,326			6,158		3.39	%		687,331			5,762		3.40	%
Noninterest-earning assets		41,939								43,478								42,045
Total assets	$	788,976							$	763,804							$	729,376
Interest-bearing liabilities:
Savings accounts		194,120			72		0.15	%		191,464			72		0.15	%		190,313			98		0.21	%
NOW accounts		62,039			43		0.28	%		62,838			29		0.18	%		69,511			48		0.28	%
Money market accounts		93,174			36		0.16	%		77,140			36		0.19	%		75,994			54		0.29	%
Term certificates		143,320			164		0.46	%		135,406			171		0.50	%		96,978			238		1.00	%
Total interest-bearing deposits		492,653			315		0.26	%		466,848			308		0.26	%		432,796			438		0.41	%
FHLBB and FRB advances		48,333			147		1.23	%		53,592			155		1.15	%		70,857			232		1.33	%
Total interest-bearing liabilities		540,986			462		0.35	%		520,440			463		0.35	%		503,653			670		0.54	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		140,454								127,486								106,929
Other noninterest-bearing liabilities		11,559								13,305								15,375
Total liabilities		692,999								661,231								625,957
Total stockholders' equity		95,977								102,573								103,419
Total liabilities and stockholders' equity	$	788,976							$	763,804							$	729,376
Net interest income				$	5,268							$	5,695							$	5,092
Interest rate spread⁽⁴⁾							2.76	%							3.04	%							2.86	%
Net interest-earning assets⁽⁵⁾	$	206,051							$	199,886							$	183,678
Net interest margin⁽⁶⁾							2.86	%							3.14	%							3.00	%
Cost of deposits ⁽⁸⁾							0.20	%							0.21	%							0.33	%
Cost of funds ⁽⁹⁾							0.27	%							0.28	%							0.45	%
Ratio of interest-earning assets to interest-bearing liabilities		138.09	%							138.41	%							136.47	%

(1) Includes nonaccruing loan balances and interest received on such loans, in addition to loans held for sale.

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

(3) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $1,000, $1,000 and $1,000 for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, 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.

(7) During the fourth quarter of 2021, the Company changed the yield calculation method from the "30/360" to the "Actual/Actual" method. Management believes that the "Actual/Actual" method provides a more consistent and relevant metric for yield performance comparisons.

(8) Cost of deposits represents the total interest paid on deposits, divided by total interest-bearing deposits plus total noninterest-bearing deposits.

(9) Cost of funds represents the total interest paid on liabilities, divided by total interest-bearing liabilities plus total noninterest-bearing deposits.

Randolph Bancorp, Inc.

Average Balances Trend

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2022		2021		2021		2021		2021
Interest-earning assets:
Loans:
1-4 family residential	$	274,883	$	319,855	$	345,576	$	319,087	$	336,805
Home equity		57,046		57,183		53,345		49,789		48,383
Commercial real estate		197,330		186,943		174,319		159,423		146,683
Construction		32,734		34,246		32,690		29,902		30,350
Total real estate loans		561,993		598,227		605,930		558,201		562,221
Commercial and industrial		16,631		18,311		22,693		25,497		21,860
Consumer		7,617		8,313		12,820		9,052		9,940
Total loans		586,241		624,851		641,443		592,750		594,021
Investment securities		52,930		54,314		54,229		55,376		57,818
Interest-earning deposits		107,866		41,161		11,002		43,888		35,492
Total interest-earning assets		747,037		720,326		706,674		692,014		687,331
Non-interest earning assets		41,939		43,478		44,614		40,257		42,045
Total assets	$	788,976	$	763,804	$	751,288	$	732,271	$	729,376

Interest-bearing liabilities:
Savings accounts	$	194,120	$	191,464	$	189,254	$	192,434	$	190,313
NOW accounts		62,039		62,838		61,951		69,730		69,511
Money market accounts		93,174		77,140		73,662		72,469		75,994
Term certificates		143,320		135,406		113,787		104,604		96,978
Total interest-bearing deposits		492,653		466,848		438,654		439,237		432,796
FHLBB and FRB advances		48,333		53,592		64,047		51,502		70,857
Total interest-bearing liabilities		540,986		520,440		502,701		490,739		503,653
Noninterest-bearing liabilities:
Noninterest-bearing deposits		140,454		127,486		126,165		124,656		106,929
Other noninterest-bearing liabilities		11,559		13,305		19,021		13,606		15,375
Total liabilities		692,999		661,231		647,887		629,001		625,957
Total stockholders' equity		95,977		102,573		103,401		103,270		103,419
Total liabilities and stockholders' equity	$	788,976	$	763,804	$	751,288	$	732,271	$	729,376

Randolph Bancorp, Inc.

Interest Earned and Paid Trend

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2022		2021		2021		2021		2021
Interest-earning assets:
Loans:
1-4 family residential	$	2,400	$	2,790	$	3,021	$	2,763	$	2,974
Home equity		470		480		475		412		433
Commercial real estate		1,921		1,880		1,809		1,666		1,406
Construction		296		331		310		289		295
Total real estate loans		5,087		5,481		5,615		5,130		5,108
Commercial and industrial		277		331		493		266		274
Consumer		103		111		118		109		126
Total loans		5,467		5,923		6,226		5,505		5,508
Investment securities		221		222		224		230		247
Interest-earning deposits		42		13		4		8		7
Total interest-earning assets		5,730		6,158		6,454		5,743		5,762

Interest-bearing liabilities:
Savings accounts	$	72	$	72	$	76	$	89	$	98
NOW accounts		43		29		23		38		48
Money market accounts		36		36		41		43		54
Term certificates		164		171		159		175		238
Total interest-bearing deposits		315		308		299		345		438
FHLBB and FRB advances		147		155		178		198		232
Total interest-bearing liabilities		462		463		477		543		670

Net interest income		5,268		5,695		5,977		5,200		5,092

Randolph Bancorp, Inc.

Average Yield Trend⁽¹⁾

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021
Interest-earning assets:
Loans:
1-4 family residential		3.54	%		3.46	%		3.47	%		3.47	%		3.58	%
Home equity		3.34	%		3.33	%		3.53	%		3.32	%		3.63	%
Commercial real estate		3.95	%		3.99	%		4.12	%		4.19	%		3.89	%
Construction		3.67	%		3.83	%		3.76	%		3.88	%		3.94	%
Total real estate loans		3.67	%		3.63	%		3.68	%		3.69	%		3.68	%
Commercial and industrial		6.75	%		7.17	%		8.62	%		4.18	%		5.08	%
Consumer		5.48	%		5.30	%		3.65	%		4.83	%		5.14	%
Total loans		3.78	%		3.76	%		3.85	%		3.73	%		3.76	%
Investment securities		1.69	%		1.62	%		1.64	%		1.67	%		1.73	%
Interest-earning deposits		0.16	%		0.13	%		0.14	%		0.07	%		0.08	%
Total interest-earning assets		3.11	%		3.39	%		3.62	%		3.33	%		3.40	%

Interest-bearing liabilities:
Savings accounts		0.15	%		0.15	%		0.16	%		0.19	%		0.21	%
NOW accounts		0.28	%		0.18	%		0.15	%		0.22	%		0.28	%
Money market accounts		0.16	%		0.19	%		0.22	%		0.24	%		0.29	%
Term certificates		0.46	%		0.50	%		0.55	%		0.67	%		1.00	%
Total interest-bearing deposits		0.26	%		0.26	%		0.27	%		0.32	%		0.41	%
FHLBB and FRB advances		1.23	%		1.15	%		1.10	%		1.54	%		1.33	%
Total interest-bearing liabilities		0.35	%		0.35	%		0.38	%		0.44	%		0.54	%

Interest rate spread		2.76	%		3.04	%		3.24	%		2.89	%		2.86	%
Net interest rate margin		2.86	%		3.14	%		3.36	%		3.01	%		3.00	%
Cost of deposits		0.20	%		0.21	%		0.21	%		0.25	%		0.33	%
Cost of funds		0.27	%		0.28	%		0.30	%		0.35	%		0.45	%
Ratio of interest-earning assets to interest-bearing liabilities		138.09	%		138.41	%		140.58	%		141.01	%		136.47	%

(1) During the fourth quarter of 2021, the Company changed the yield calculation method from the "30/360" to the "Actual/Actual" method. Management believes that the "Actual/Actual" method provides a more consistent and relevant metric for yield performance comparisons.

Randolph Bancorp, Inc.

Rate/Volume Analysis

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31, 2022 vs. December 31, 2021
	Increase (Decrease)						Total
	Due to Changes in						Increase
	Volume			Rate			(Decrease)
Interest-earning assets:
Loans:
1-4 family residential	$	(338	)	$	(52	)		(390	)
Home equity		3			(13	)		(10	)
Commercial real estate		68			(27	)		41
Construction		(12	)		(23	)		(35	)
Total real estate loans		(279	)		(115	)		(394	)
Commercial and industrial		(27	)		(27	)		(54	)
Consumer		(7	)		(1	)		(8	)
Total loans		(313	)		(143	)		(456	)
Investment securities		(4	)		3			(1	)
Interest-earning deposits		17			12			29
Total interest-earning assets		(300	)		(128	)		(428	)
Interest-bearing liabilities:
Savings accounts		-			-			-
NOW accounts		-			14			14
Money market accounts		6			(6	)		-
Term certificates		8			(15	)		(7	)
Total interest-bearing deposits		14			(7	)		7
FHLBB and FRB advances		(12	)		4			(8	)
Total interest-bearing liabilities		2			(3	)		(1	)
Change in net interest income	$	(302	)	$	(125	)	$	(427	)

Randolph Bancorp, Inc.

Rate/Volume Analysis

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31, 2022 vs. 2021
	Increase (Decrease)						Total
	Due to Changes in						Increase
	Volume			Rate			(Decrease)
Interest-earning assets:
Loans:
1-4 family residential	$	(488	)	$	(86	)		(574	)
Home equity		77			(40	)		37
Commercial real estate		447			68			515
Construction		21			(20	)		1
Total real estate loans		57			(78	)		(21	)
Commercial and industrial		(60	)		63			3
Consumer		(28	)		5			(23	)
Total loans		(31	)		(10	)		(41	)
Investment securities		(17	)		(9	)		(26	)
Interest-earning deposits		5			30			35
Total interest-earning assets		(43	)		11			(32	)
Interest-bearing liabilities:
Savings accounts		2			(28	)		(26	)
NOW accounts		(4	)		(1	)		(5	)
Money market accounts		10			(28	)		(18	)
Term certificates		86			(160	)		(74	)
Total interest-bearing deposits		94			(217	)		(123	)
FHLBB and FRB advances		(66	)		(19	)		(85	)
Total interest-bearing liabilities		28			(236	)		(208	)
Change in net interest income	$	(71	)	$	247		$	176

Randolph Bancorp, Inc.

Quarterly Trend in Mortgage Banking Income

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021
Gain on loan origination and sale activities, net
Gain on sale of mortgages and realized gain from derivative financial instruments, net	$	3,093		$	4,818		$	6,339		$	6,545		$	15,876
Net change in fair value of loans held for sale and portfolio loans accounted for at fair value		(1,559	)		(1,360	)		549			1,091			(3,816	)
Capitalized residential mortgage loan servicing rights		377			942			783			1,476			2,797
Net change in fair value of derivative loan commitments and forward loan sale commitments		(647	)		(677	)		(442	)		(3,372	)		(3,864	)
Gain on loan origination and sales activities, net	$	1,264		$	3,723		$	7,229		$	5,740		$	10,993

Mortgage servicing fees, net
Residential mortgage loan servicing fees	$	1,277		$	1,355		$	1,282		$	1,205		$	1,170
Amortization of residential mortgage loan servicing rights		(749	)		(831	)		(795	)		(759	)		(812	)
Release (provision) to the valuation allowance of mortgage loan servicing rights		135			43			39			(65	)		421
Sub-servicer expenses⁽¹⁾		(315	)		(310	)		(252	)		-			-
Mortgage servicing fees, net	$	348		$	257		$	274		$	381		$	779
Total gain on loan origination and sales activities and mortgage servicing fees	$	1,612		$	3,980		$	7,503		$	6,121		$	11,772

Principal balance of loans originated for sale	$	110,371		$	222,644		$	260,519		$	309,033		$	487,675
Principal balance of loans sold	$	129,858		$	297,316		$	260,473		$	342,762		$	503,285
Ending notional amount of derivative loan commitments	$	42,678		$	85,887		$	158,085		$	139,748		$	239,509
Loans held for sale, at fair value	$	22,698		$	44,766		$	75,400		$	74,277		$	93,176
Margin on loans sold ⁽²⁾		2.67	%		1.94	%		2.73	%		2.34	%		3.71	%

(1) Sub-servicer expenses were first incurred during the three months ended September 30, 2021, due to a conversion of the Company's mortgage loan servicing activities. Previously, all expenses related to servicing mortgage loans serviced for others were included in non-interest expenses.

(2) Margin on loans sold is calculated as the sum of the gain on sale of mortgages and realized gain from derivative financial instruments, net, plus capitalized residential mortgage loan servicing rights divided by the principal balance of loans sold.

Randolph Bancorp, Inc.

Segment Information

(Dollars in thousands)

(Unaudited)

	For the Three Months Ended March 31, 2022
	Envision Bank		Envision Mortgage		Consolidated Total
Net interest income	$	5,011	$	256	$	5,267
Provision for loan losses		71		-		71
Net interest income after provision for loan losses		4,940

Randolph Bancorp, Inc. Announces First Quarter 2022 Financial Results