Randolph Bancorp, Inc. Announces Fourth Quarter 2021 Financial Results and Declares Quarterly and Special Cash Dividends
QUINCY, Mass., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Randolph Bancorp, Inc. (NASDAQ:RNDB) Randolph Bancorp, Inc. (the "Company") (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the "Bank"), today announced 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 compared to net income of $3.1 million, or $0.64 per basic and $0.62 per diluted share, for the three months ended September 30, 2021 and net income of $5.3 million, or $1.03 per basic share and $1.01 per diluted share, for the three months ended December 31, 2020. Excluding one-time events of $26,000 in severance expenses and $55,000 in loss of 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 events of $139,000 in severance expenses and $190,000 in other outsourcing expenses, net income on a non-GAAP basis was $3.4 million, or $0.67 per diluted share, for the three months ended September 30, 2021. Excluding one-time charges of $294,000 related to the closing of a residential lending office and $69,000 in severance expenses, net income on a non-GAAP basis for the three months ended December 31, 2020 was $5.6 million, or $1.06 per diluted share.
For the year ended December 31, 2021, net income was $9.6 million, or $1.96 per basic share and $1.88 per diluted share, compared to net income of $19.9 million, or $3.89 per basic and $3.86 per diluted share, for the year ended December 31, 2020. Net income on a non-GAAP basis, excluding certain nonrecurring items, was $10.1 million, or $1.99 per diluted share, for the year ended December 31, 2021, compared to net income on a non-GAAP basis, excluding other certain nonrecurring items, of $21.5 million, or $4.15 per diluted share, for the year ended December 31, 2020.
The Company announced that its Board of Directors declared a regular quarterly dividend of $0.15 per common share and a one-time special dividend of $2.00 per share. Both dividends will be payable on or about February 22, 2022, to shareholders of record as of February 8, 2022.
The Company also announced a modification to its stock repurchase program (the "Program"), previously announced on October 26, 2021. The modification changes the Program so that the Company may purchase up to 62,000 shares, or approximately 1% of the Company's outstanding common stock. The Company repurchased 4,337 shares through the Program as of December 31, 2021.
At December 31, 2021, total assets amounted to $803.3 million, compared to $751.1 million at September 30, 2021, an increase of $52.2 million, or 6.9%. Total loans decreased by $20.2 million, or 3.5%, to $549.8 million at December 31, 2021 from $570.0 million at September 30, 2021, and loans held for sale decreased by $30.6 million to $44.8 million at December 31, 2021 from $75.4 million at September 30, 2021. Cash and cash equivalents increased to $115.4 million at December 31, 2021, an increase of $102.6 million, or 796.6% from $12.9 million as of September 30, 2021, as a result of deposit growth of $64.7 million in the quarter, a 1-4 family residential portfolio loan sale of $35.6 million during the quarter, and the decrease in loans held for sale of $30.6 million. Compared to December 31, 2020, total assets grew $82.2 million, or 11.4%, from $721.1 million. The growth from the prior year period was driven by an increase in total loans of $60.5 million, or 12.4%, and cash and cash equivalents of $101.7 million, or 738.2%, partially offset by a decrease in loans held for sale of $74.3 million, or 62.4%.
William M. Parent, President and Chief Executive Officer, stated, "The fourth quarter was a transitional quarter as our mortgage banking business continued to be negatively impacted by declining origination volumes. During the quarter, we were able to grow our commercial lending business and increase and extend our low-cost funding, while also repositioning our fixed-rate residential mortgage loan portfolio. This significantly increased our liquidity and prospects for improving net interest margin in anticipation of loan growth into a higher interest rate environment in 2022. We are continuing to transition our mortgage banking operations and in the first quarter of 2022 initiated a reduction in force, reflecting lower mortgage loan production levels. Our decision to declare a special dividend that returns approximately $10 million in capital to our shareholders, reflects the impact of low stock trading volume on the pace of our stock buybacks and our commitment to actively manage our strong capital position. We look forward to 2022 with strong prospects for growth in our community bank that should generate continued operating leverage and stronger recurring earnings."
Fourth Quarter Operating Results
Net interest income decreased by $282,000, or 4.7%, to $5.7 million for the three months ended December 31, 2021 from $6.0 million for the three months ended September 30, 2021. This decrease was primarily due to a 7.4% decrease in average balances of 1-4 family residential loans, as a result of the $35.6 million sale from portfolio, a $160,000 decline in fee accretion earned from the Small Business Administration's Paycheck Protection Program ("SBA PPP") to $158,000 in the fourth quarter of 2021 and a $99,000 decrease in interest income from the downgrade of three loans that were previously granted COVID-19 related forbearances to nonaccrual status. The yield earned on interest-earning assets decreased by 23 basis points from the prior quarter, and the rate paid on interest-bearing liabilities decreased by 3 basis points from the prior quarter. Accordingly, the net interest margin decreased by 22 basis points, to 3.14% in the fourth quarter from 3.36% in the third quarter.
Net interest income increased by $654,000, or 13.0%, to $5.7 million for the three months ended December 31, 2021, from $5.0 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin increased by 14 basis points to 3.14%, from 3.00%. The improvement reflects average loan growth of $44.8 million from the prior year quarter, while the cost of interest-bearing liabilities decreased by 27 basis points.
The Company recognized a credit for loan losses of $108,000 for the quarter ended December 31, 2021, driven by changes in the qualitative factors related to improving commercial lending trends, in addition to a decline in total loan balances of $20.2 million from the prior quarter. The allowance for loan losses was 1.14%, 1.13% and 1.39% of total loans at December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and was 239.7%, 427.7% and 94.6% of non-performing assets at December 31, 2021, September 30, 2021 and December 31, 2020, respectively.
Non-interest income decreased $3.6 million, or 44.3%, to $4.5 million for the quarter ended December 31, 2021 from $8.1 million in the quarter ended September 30, 2021, due to a decrease of $3.5 million in the net gain on loan origination and sale activities. Sold mortgages totaled $297.3 million in the fourth quarter of 2021, compared to $260.5 million in the third quarter of 2021. The fourth quarter of 2021 ended with a mortgage pipeline of $85.9 million, compared to a pipeline of $158.1 million at the end of the third quarter of 2021, and loans held for sale were $44.8 million as of December 31, 2021, compared to $75.4 million as of September 30, 2021. The decrease in the mortgage banking pipeline and loans held for sale, reflecting rising interest rates and seasonality, were key contributors to the erosion in the gain on loan origination and sale activities from the prior quarter. Mortgage servicing fees decreased $17,000, or 6.2%, to $257,000 for the fourth quarter of 2021 from $274,000 in the third quarter of 2021 as a result of a full quarter of expenses paid to the bank's new mortgage sub-servicer of $310,000 for the quarter, partially offset by a positive fair value adjustment of $43,000 in the fourth quarter of 2021, compared to a positive fair value adjustment of $39,000 for the third quarter of 2021, based on an increase in mortgage interest rates.
Non-interest income decreased $11.1 million, or 70.9%, to $4.5 million for the quarter ended December 31, 2021 from $15.6 million for the quarter ended December 31, 2020, principally due to a decrease of $10.9 million in the net gain on loan origination and sale activities. Sold mortgage loans totaled $297.3 million in the fourth quarter of 2021, compared to sold mortgage loans of $426.5 million during the fourth quarter of 2020. The fourth quarter of 2021 ended with a mortgage pipeline of $85.9 million, compared to a pipeline of $396.6 million at the end of the fourth quarter of 2020. Mortgage servicing fees decreased $18,000 in the quarter ended December 31, 2021, principally due to $310,000 in sub-servicer expenses incurred during the fourth quarter of 2021, partially offset by a positive valuation adjustment to mortgage servicing rights of $43,000 in the quarter ended December 31, 2021 compared to an impairment charge of $87,000 in the quarter ended December 31, 2020 and increases in residential mortgage loan servicing fees, net of amortization, of $162,000 from the prior year quarter.
Non-interest expenses decreased $638,000, or 6.5%, to $9.2 million in the quarter ended December 31, 2021 from $9.9 million in the quarter ended September 30, 2021. The decrease was due to a decrease in salaries and employee benefits expense of $297,000, or 4.7%, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production and by reductions in headcount related to the bank's outsourcing of mortgage loan servicing, in addition to decreases in data processing, professional fees and other non-interest expenses from the prior quarter totaling $452,000.
Non-interest expenses decreased $3.7 million to $9.2 million in the quarter ended December 31, 2021 from $12.9 million in the quarter ended December 31, 2020. The decrease is principally due to a decrease in salaries and employee benefits of $2.6 million, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production and reduced headcount, and decreases of $437,000 in occupancy and equipment expenses, as the Company has significantly decreased its operating footprint over the past twelve months.
The income tax expense was $330,000 for the three months ended December 31, 2021, compared to $1.2 million for the three months ended September 30, 2021 and $2.2 million for the three months ended December 31, 2020.
Year-to-Date Operating Results
Net interest income increased by $3.1 million, or 16.4%, to $22.0 million for the year ended December 31, 2021 from $18.9 million for the year ended December 31, 2020. The change reflects the downward pricing and improved composition of deposit liabilities, as well as loan growth. The composition of our funding base improved with an increase of $48.9 million, or 50.6%, of non-interest bearing deposits and a decrease of $23.3 million, or 31.8%, of borrowings. The composition change resulted in a 50 basis point decrease in the cost of interest-bearing liabilities. Average loan growth of $51.5 million, or 9.2%, from the prior year more than offset a 17 basis point decline in loan yields.
The Company recognized a credit for loan losses of $438,000 for the year ended December 31, 2021 compared to a provision of $2.6 million in the prior year. At December 31, 2021, improvements to qualitative factors related to the impact of the COVID-19 pandemic, the economic outlook, commercial lending and credit quality trends all helped to generate the credit for loan losses, partially offset by provisions for loan growth.
Non-interest income decreased $23.5 million, or 42.4%, to $31.9 million for the year ended December 31, 2021 from $55.4 million in the prior year, principally due to a decrease of $26.6 million in the net gain on loan origination and sale activities, partially offset by an increase in mortgage servicing fees, net, of $2.8 million. Mortgage loans sold were $1.4 billion in 2021, compared to $1.5 billion in the prior year. Net gain on loan origination and sale activities decreased, as a result of both lower loan sales and the impact of a shrinking mortgage banking pipeline during 2021, compared to an increasing mortgage banking pipeline during 2020. Mortgage servicing fees increased $2.8 million for the year ended December 31, 2021 to $1.7 million from a loss of $1.2 million in the year ended December 31, 2020, primarily due to positive fair value adjustments of $438,000 for the year ended December 31, 2021 compared to impairment charges of $2.1 million in the year ended December 31, 2020.
Non-interest expenses decreased $4.7 million, or 10.1%, to $41.7 million for the year ended December 31, 2021 from $46.3 million for the year ended December 31, 2020. Non-interest expenses in the year ended December 31, 2020 included one-time charges of $1,375,000 related to the retirement of senior executives as well as $229,000 of COVID-19 pandemic-related expenses. Occupancy and equipment expenses decreased $753,000 as compared to the prior year period, as the Company migrated to a hybrid work environment and reduced its overall real estate footprint by closing six loan production offices, and reducing the office space for the bank's headquarters and loan operations office since the prior year, and reduced COVID-19 pandemic related spending. These decreases were partially offset by increases in other non-interest expenses of $307,000, related to one-time conversion expenses for the bank's new mortgage sub-servicer, and increases to board fees and stock-based compensation paid to new members of the bank's Board of Directors.
Income tax expenses decreased to $3.1 million for the year ended December 31, 2021 from $5.5 million for the year ended December 31, 2020. The current period included a reversal of a charitable contribution carryforward valuation allowance, and the prior period included the utilization of net operating loss carryforwards.
Balance Sheet
At December 31, 2021, total assets amounted to $803.3 million, compared to $755.1 million at September 30, 2021, an increase of $52.2 million, or 6.9%. A $102.6 million increase in cash and cash equivalents from the prior quarter was partially offset by a $30.6 million decrease in loans held for sale and a $20.2 million decrease in total loans. The decrease in total loans was primarily the result of a $35.6 million sale of 1-4 family residential loans from portfolio during the quarter, partially offset by an increase of $12.3 million, or 6.7%, in commercial real estate loans. Deposits increased by $64.7 million, or 11.3%, in the quarter, including an increase of $11.6 million in non-interest bearing deposits and $32.6 million in term certificates, as the Company looked to lengthen the duration of its funding base in anticipation of rising interest rates.
Total assets at December 31, 2021 increased $82.2 million, or 11.4%, from $721.1 million at December 31, 2020. Contributing to asset growth was a $61.0 million increase in net loans to $544.6 million at December 31, 2021 from $483.6 million at December 31, 2020. Cash and cash equivalents increased by $101.7 million, or 738.2%, to $115.4 million at December 31, 2021 from $13.8 million at December 31, 2020, principally due an increase of $109.8 million, or 20.8%, of deposits. Commercial real estate loans increased by $53.5 million, or 37.2%, as we focus on diversifying our loan mix. Federal Home Loan Bank of Boston ("FHLBB") advances decreased by $11.9 million to $50.0 million at December 31, 2021, from $61.9 million at December 31, 2020, and Federal Reserve Bank of Boston ("Federal Reserve Bank") advances decreased by $11.4 million.
Total stockholders' equity was $100.9 million at December 31, 2021 compared to $100.6 million at September 30, 2021. The increase of $306,000 reflects net income of $786,000, proceeds from the exercise of options of $255,000 and stock-based compensation of $359,000, partially offset by repurchases during the period of $144,000 and dividend payments of $765,000.
Total stockholders' equity was $100.9 million at December 31, 2021 compared to $99.8 million at December 31, 2020. The increase of $1.1 million relates mainly to net income from the previous twelve months of $9.6 million, partially offset by share repurchases of $8.5 million.
Subsequent Events
Subsequent to December 31, 2021, the Company announced a reduction in force to its residential lending back-office operations of approximately 30%. The Company estimates that this reduction in force will reduce salaries and benefits expense by approximately $1.4 million on an annualized basis. Through this reduction in force, the elimination of overtime and temporary staffing costs associated with the mortgage origination process and the outsourcing residential loan servicing operations, which occurred in 2021, the Company will have reduced related costs by $3.3 million, or 15% of Envision Mortgage's 2021 salaries and benefits expense.
COVID-19 Impact
In response to the impact of the COVID-19 pandemic on our customers and our business, the Company implemented a series of measures through the date of this release, including participation in the SBA PPP, through which we funded $26.2 million of SBA PPP Loans through December 31, 2021, and granting payment deferrals for residential mortgage, home equity and certain commercial borrowers who were current in their payments at the time the deferral was requested. Depending on the circumstances of the borrowers, the forbearance calls for a reduced or full deferral of payment. Please refer to the Loan Payment Deferrals and COVID-19 Highly Impacted Sectors for statistics on loan payment deferrals and the commercial loan sectors we believe could continue to be exposed to the economic impact of the COVID-19 pandemic.
About Randolph Bancorp, Inc.
Randolph Bancorp, Inc. is the holding company for Envision Bank and its Envision Mortgage Division. Envision Bank is a full-service community bank with five retail branch locations, loan operations centers in North Attleboro and Quincy, Massachusetts, three loan production offices located in Massachusetts and one loan production office in Southern New Hampshire.
Forward Looking Statements
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("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, 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.
Category: Earnings
Source: Randolph Bancorp, Inc. and Envision Bank
CONTACT:
Envision Bank
William M. Parent
President and Chief Executive Officer
617.925.1955
[email protected]
Randolph Bancorp, Inc.
Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
| % Change | ||||||||||||||||||||
| December 31, | September 30, | December 31, | Dec 2021 vs. | Dec 2021 vs. | ||||||||||||||||
| 2021 | 2021 | 2020 | Sep 2021 | Dec 2020 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 115,449 | $ | 12,876 | $ | 13,774 | 796.6 | % | 738.2 | % | ||||||||||
| Securities available for sale, at fair value | 51,666 | 51,725 | 55,366 | (0.1 | )% | (6.7 | )% | |||||||||||||
| Loans held for sale, at fair value | 44,766 | 75,400 | 119,112 | (40.6 | )% | (62.4 | )% | |||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | 236,364 | 265,561 | 235,648 | (11.0 | )% | 0.3 | % | |||||||||||||
| Home equity | 57,295 | 56,124 | 48,166 | 2.1 | % | 19.0 | % | |||||||||||||
| Commercial real estate | 197,423 | 185,100 | 143,893 | 6.7 | % | 37.2 | % | |||||||||||||
| Construction | 33,961 | 34,479 | 31,050 | (1.5 | )% | 9.4 | % | |||||||||||||
| Total real estate loans | 525,043 | 541,264 | 458,757 | (3.0 | )% | 14.4 | % | |||||||||||||
| Commercial and industrial | 17,242 | 19,896 | 20,259 | (13.3 | )% | (14.9 | )% | |||||||||||||
| Consumer | 7,552 | 8,860 | 10,289 | (14.8 | )% | (26.6 | )% | |||||||||||||
| Total loans | 549,837 | 570,020 | 489,305 | (3.5 | )% | 12.4 | % | |||||||||||||
| Allowance for loan losses | (6,289 | ) | (6,432 | ) | (6,784 | ) | (2.2 | )% | (7.3 | )% | ||||||||||
| Net deferred loan costs and fees, and purchase premiums | 1,073 | 1,031 | 1,123 | 4.1 | % | (4.5 | )% | |||||||||||||
| Loans, net | 544,621 | 564,619 | 483,644 | (3.5 | )% | 12.6 | % | |||||||||||||
| Federal Home Loan Bank of Boston stock, at cost | 2,940 | 3,239 | 3,576 | (9.2 | )% | (17.8 | )% | |||||||||||||
| Accrued interest receivable | 1,500 | 1,763 | 1,562 | (14.9 | )% | (4.0 | )% | |||||||||||||
| Mortgage servicing rights, net | 15,616 | 15,402 | 12,377 | 1.4 | % | 26.2 | % | |||||||||||||
| Premises and equipment, net | 7,684 | 6,462 | 4,781 | 18.9 | % | 60.7 | % | |||||||||||||
| Bank-owned life insurance | 8,784 | 8,744 | 8,622 | 0.5 | % | 1.9 | % | |||||||||||||
| Foreclosed real estate, net | - | - | 132 | - | % | (100.0 | )% | |||||||||||||
| Other assets | 10,252 | 10,867 | 18,126 | (5.7 | )% | (43.4 | )% | |||||||||||||
| Total assets | $ | 803,278 | $ | 751,097 | $ | 721,072 | 6.9 | % | 11.4 | % | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest bearing | $ | 145,666 | $ | 134,058 | $ | 96,731 | 8.7 | % | 50.6 | % | ||||||||||
| Savings accounts | 191,712 | 188,346 | 185,481 | 1.8 | % | 3.4 | % | |||||||||||||
| NOW accounts | 53,996 | 53,804 | 53,530 | 0.4 | % | 0.9 | % | |||||||||||||
| Money market accounts | 90,544 | 73,562 | 77,393 | 23.1 | % | 17.0 | % | |||||||||||||
| Term certificates | 106,112 | 73,519 | 83,444 | 44.3 | % | 27.2 | % | |||||||||||||
| Interest bearing brokered | 50,117 | 50,116 | 31,728 | 0.0 | % | 58.0 | % | |||||||||||||
| Total deposits | 638,147 | 573,405 | 528,307 | 11.3 | % | 20.8 | % | |||||||||||||
| Federal Reserve Bank advances | - | - | 11,431 | - | % | (100.0 | )% | |||||||||||||
| Federal Home Loan Bank of Boston advances | 50,000 | 62,900 | 61,895 | (20.5 | )% | (19.2 | )% | |||||||||||||
| Mortgagors' escrow accounts | 2,128 | 1,905 | 2,338 | 11.7 | % | (9.0 | )% | |||||||||||||
| Post-employment benefit obligations | 2,222 | 2,182 | 2,382 | 1.8 | % | (6.7 | )% | |||||||||||||
| Other liabilities | 9,878 | 10,108 | 14,900 | (2.3 | )% | (33.7 | )% | |||||||||||||
| Total liabilities | 702,375 | 650,500 | 621,253 | 8.0 | % | 13.1 | % | |||||||||||||
| Stockholders' Equity: | ||||||||||||||||||||
| Common stock | 50 | 50 | 54 | 0.0 | % | (7.4 | )% | |||||||||||||
| Additional paid-in capital | 44,078 | 43,574 | 50,937 | 1.2 | % | (13.5 | )% | |||||||||||||
| Retained earnings | 60,524 | 60,504 | 51,689 | 0.0 | % | 17.1 | % | |||||||||||||
| ESOP-Unearned compensation | (3,568 | ) | (3,615 | ) | (3,756 | ) | (1.3 | )% | (5.0 | )% | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | (181 | ) | 84 | 895 | (315.5 | )% | (120.2 | )% | ||||||||||||
| Total stockholders' equity | 100,903 | 100,597 | 99,819 | 0.3 | % | 1.1 | % | |||||||||||||
| Total liabilities and stockholders' equity | $ | 803,278 | $ | 751,097 | $ | 721,072 | 6.9 | % | 11.4 | % | ||||||||||
Randolph Bancorp, Inc.
Consolidated Balance Sheet Trend
(Dollars in thousands)
(Unaudited)
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 115,449 | $ | 12,876 | $ | 34,876 | $ | 54,950 | $ | 13,774 | ||||||||||
| Securities available for sale, at fair value | 51,666 | 51,725 | 50,212 | 54,148 | 55,366 | |||||||||||||||
| Loans held for sale, at fair value | 44,766 | 75,400 | 74,277 | 93,176 | 119,112 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | 236,364 | 265,561 | 263,992 | 239,190 | 235,648 | |||||||||||||||
| Home equity | 57,295 | 56,124 | 50,555 | 49,073 | 48,166 | |||||||||||||||
| Commercial real estate | 197,423 | 185,100 | 167,691 | 146,930 | 143,893 | |||||||||||||||
| Construction | 33,961 | 34,479 | 29,140 | 29,975 | 31,050 | |||||||||||||||
| Total real estate loans | 525,043 | 541,264 | 511,378 | 465,168 | 458,757 | |||||||||||||||
| Commercial and industrial | 17,242 | 19,896 | 25,826 | 23,869 | 20,259 | |||||||||||||||
| Consumer | 7,552 | 8,860 | 9,194 | 8,724 | 10,289 | |||||||||||||||
| Total loans | 549,837 | 570,020 | 546,398 | 497,761 | 489,305 | |||||||||||||||
| Allowance for loan losses | (6,289 | ) | (6,432 | ) | (6,523 | ) | (6,563 | ) | (6,784 | ) | ||||||||||
| Net deferred loan costs and fees, and purchase premiums | 1,073 | 1,031 | 785 | 785 | 1,123 | |||||||||||||||
| Loans, net | 544,621 | 564,619 | 540,660 | 491,983 | 483,644 | |||||||||||||||
| Federal Home Loan Bank of Boston stock, at cost | 2,940 | 3,239 | 2,855 | 3,576 | 3,576 | |||||||||||||||
| Accrued interest receivable | 1,500 | 1,763 | 1,523 | 1,501 | 1,562 | |||||||||||||||
| Mortgage servicing rights, net | 15,616 | 15,402 | 15,375 | 14,744 | 12,377 | |||||||||||||||
| Premises and equipment, net | 7,684 | 6,462 | 5,115 | 4,709 | 4,781 | |||||||||||||||
| Bank-owned life insurance | 8,784 | 8,744 | 8,703 | 8,662 | 8,622 | |||||||||||||||
| Foreclosed real estate, net | - | - | - | 132 | 132 | |||||||||||||||
| Other assets | 10,252 | 10,867 | 10,546 | 10,607 | 18,126 | |||||||||||||||
| Total assets | $ | 803,278 | $ | 751,097 | $ | 744,142 | $ | 738,188 | $ | 721,072 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest bearing | $ | 145,666 | $ | 134,058 | $ | 124,683 | $ | 118,623 | $ | 96,731 | ||||||||||
| Savings accounts | 191,712 | 188,346 | 190,584 | 192,712 | 185,481 | |||||||||||||||
| NOW accounts | 53,996 | 53,804 | 51,059 | 62,772 | 53,530 | |||||||||||||||
| Money market accounts | 90,544 | 73,562 | 73,967 | 78,236 | 77,393 | |||||||||||||||
| Term certificates | 106,112 | 73,519 | 74,631 | 75,690 | 83,444 | |||||||||||||||
| Interest bearing brokered | 50,117 | 50,116 | 57,059 | 32,225 | 31,728 | |||||||||||||||
| Total deposits | 638,147 | 573,405 | 571,983 | 560,258 | 528,307 | |||||||||||||||
| Federal Reserve Bank advances | - | - | - | - | 11,431 | |||||||||||||||
| Federal Home Loan Bank of Boston advances | 50,000 | 62,900 | 50,016 | 60,024 | 61,895 | |||||||||||||||
| Mortgagors' escrow accounts | 2,128 | 1,905 | 1,783 | 1,924 | 2,338 | |||||||||||||||
| Post-employment benefit obligations | 2,222 | 2,182 | 2,226 | 2,235 | 2,382 | |||||||||||||||
| Other liabilities | 9,878 | 10,108 | 17,424 | 12,888 | 14,900 | |||||||||||||||
| Total liabilities | 702,375 | 650,500 | 643,432 | 637,329 | 621,253 | |||||||||||||||
| Stockholders' Equity: | ||||||||||||||||||||
| Common stock | 50 | 50 | 52 | 53 | 54 | |||||||||||||||
| Additional paid-in capital | 44,078 | 43,574 | 46,740 | 48,613 | 50,937 | |||||||||||||||
| Retained earnings | 60,524 | 60,504 | 57,378 | 55,801 | 51,689 | |||||||||||||||
| ESOP-Unearned compensation | (3,568 | ) | (3,615 | ) | (3,662 | ) | (3,709 | ) | (3,756 | ) | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | (181 | ) | 84 | 202 | 101 | 895 | ||||||||||||||
| Total stockholders' equity | 100,903 | 100,597 | 100,710 | 100,859 | 99,819 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 803,278 | $ | 751,097 | $ | 744,142 | $ | 738,188 | $ | 721,072 | ||||||||||
Randolph Bancorp, Inc.
Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
| Three Months Ended | % Change | |||||||||||||||||||
| December 31, | September 30, | December 31, | Dec 2021 vs. | Dec 2021 vs. | ||||||||||||||||
| 2021 | 2021 | 2020 | Sep 2021 | Dec 2020 | ||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Loans | $ | 5,923 | $ | 6,226 | $ | 5,532 | (4.9 | )% | 7.1 | % | ||||||||||
| Securities-taxable | 217 | 219 | 283 | (0.9 | )% | (23.3 | )% | |||||||||||||
| Securities-tax exempt | 4 | 4 | 6 | 0.0 | % | (33.3 | )% | |||||||||||||
| Interest-bearing deposits and certificates of deposit | 13 | 4 | 7 | 225.0 | % | 85.7 | % | |||||||||||||
| Total interest and dividend income | 6,157 | 6,453 | 5,828 | (4.6 | )% | 5.6 | % | |||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 308 | 299 | 541 | 3.0 | % | (43.1 | )% | |||||||||||||
| Borrowings | 155 | 178 | 247 | (12.9 | )% | (37.2 | )% | |||||||||||||
| Total interest expense | 463 | 477 | 788 | (2.9 | )% | (41.2 | )% | |||||||||||||
| Net interest income | 5,694 | 5,976 | 5,040 | (4.7 | )% | 13.0 | % | |||||||||||||
| Provision (credit) for loan losses | (108 | ) | (90 | ) | 215 | 20.0 | % | (150.2 | )% | |||||||||||
| Net interest income after provision (credit) for loan losses | 5,802 | 6,066 | 4,825 | (4.4 | )% | 20.2 | % | |||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Customer service fees | 422 | 410 | 381 | 2.9 | % | 10.8 | % | |||||||||||||
| Gain on loan origination and sale activities, net | 3,723 | 7,229 | 14,620 | (48.5 | )% | (74.5 | )% | |||||||||||||
| Mortgage servicing fees, net | 257 | 274 | 275 | (6.2 | )% | (6.5 | )% | |||||||||||||
| Increase in cash surrender value of life insurance | 41 | 41 | 45 | 0.0 | % | (8.9 | )% | |||||||||||||
| Other | 92 | 195 | 266 | (52.8 | )% | (65.4 | )% | |||||||||||||
| Total non-interest income | 4,535 | 8,149 | 15,587 | (44.3 | )% | (70.9 | )% | |||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Salaries and employee benefits | 6,084 | 6,381 | 8,722 | (4.7 | )% | (30.2 | )% | |||||||||||||
| Occupancy and equipment | 713 | 714 | 1,150 | (0.1 | )% | (38.0 | )% | |||||||||||||
| Data processing | 237 | 367 | 280 | (35.4 | )% | (15.4 | )% | |||||||||||||
| Professional fees | 325 | 490 | 389 | (33.7 | )% | (16.5 | )% | |||||||||||||
| Marketing | 245 | 134 | 231 | 82.8 | % | 6.1 | % | |||||||||||||
| FDIC insurance | 55 | 54 | 51 | 1.9 | % | 7.8 | % | |||||||||||||
| Other non-interest expenses | 1,562 | 1,719 | 2,104 | (9.1 | )% | (25.8 | )% | |||||||||||||
| Total non-interest expenses | 9,221 | 9,859 | 12,927 | (6.5 | )% | (28.7 | )% | |||||||||||||
| Income before income taxes | 1,116 | 4,356 | 7,485 | (74.4 | )% | (85.1 | )% | |||||||||||||
| Income tax expense | 330 | 1,230 | 2,211 | (73.2 | )% | (85.1 | )% | |||||||||||||
| Net income | $ | 786 | $ | 3,126 | $ | 5,274 | (74.9 | )% | (85.1 | )% | ||||||||||
| Net income per share: | ||||||||||||||||||||
| Basic | $ | 0.17 | $ | 0.64 | $ | 1.03 | ||||||||||||||
| Diluted | $ | 0.16 | $ | 0.62 | $ | 1.01 | ||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 4,743,833 | 4,869,155 | 5,135,069 | |||||||||||||||||
| Diluted | 4,993,750 | 5,074,676 | 5,244,414 | |||||||||||||||||
| Regular dividends declared per share | $ | 0.15 | $ | - | $ | - | ||||||||||||||
Randolph Bancorp, Inc.
Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
| Year to Date | % Change | |||||||||||
| December 31, | December 31, | Dec 2021 vs. | ||||||||||
| 2021 | 2020 | Dec 2020 | ||||||||||
| Interest and dividend income: | ||||||||||||
| Loans | $ | 23,162 | $ | 22,212 | 4.3 | % | ||||||
| Securities-taxable | 899 | 1,273 | (29.4 | )% | ||||||||
| Securities-tax exempt | 20 | 28 | (28.6 | )% | ||||||||
| Interest-bearing deposits and certificates of deposit | 32 | 75 | (57.3 | )% | ||||||||
| Total interest and dividend income | 24,113 | 23,588 | 2.2 | % | ||||||||
| Interest expense: | ||||||||||||
| Deposits | 1,390 | 3,778 | (63.2 | )% | ||||||||
| Borrowings | 763 | 943 | (19.1 | )% | ||||||||
| Total interest expense | 2,153 | 4,721 | (54.4 | )% | ||||||||
| Net interest income | 21,960 | 18,867 | 16.4 | % | ||||||||
| Provision (credit) for loan losses | (438 | ) | 2,553 | (117.2 | )% | |||||||
| Net interest income after provision (credit) for loan losses | 22,398 | 16,314 | 37.3 | % | ||||||||
| Non-interest income: | ||||||||||||
| Customer service fees | 1,618 | 1,283 | 26.1 | % | ||||||||
| Gain on loan origination and sale activities, net | 27,685 | 54,236 | (49.0 | )% | ||||||||
| Mortgage servicing fees, net | 1,691 | (1,153 | ) | (246.7 | )% | |||||||
| Increase in cash surrender value of life insurance | 163 | 181 | (9.9 | )% | ||||||||
| Other | 766 | 864 | (11.3 | )% | ||||||||
| Total non-interest income | 31,923 | 55,411 | (42.4 | )% | ||||||||
| Non-interest expenses: | ||||||||||||
| Salaries and employee benefits | 28,212 | 33,161 | (14.9 | )% | ||||||||
| Occupancy and equipment | 2,792 | 3,545 | (21.2 | )% | ||||||||
| Data processing | 1,168 | 943 | 23.9 | % | ||||||||
| Professional fees | 1,699 | 1,277 | 33.0 | % | ||||||||
| Marketing | 749 | 689 | 8.7 | % | ||||||||
| FDIC insurance | 217 | 187 | 16.0 | % | ||||||||
| Other non-interest expenses | 6,821 | 6,514 | 4.7 | % | ||||||||
| Total non-interest expenses | 41,658 | 46,316 | (10.1 | )% | ||||||||
| Income before income taxes | 12,663 | 25,409 | (50.2 | )% | ||||||||
| Income tax expense | 3,062 | 5,477 | (44.1 | )% | ||||||||
| Net income | $ | 9,601 | $ | 19,932 | (51.8 | )% | ||||||
| Net income per share: | ||||||||||||
| Basic | $ | 1.96 | $ | 3.89 | ||||||||
| Diluted | $ | 1.88 | $ | 3.86 | ||||||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 4,896,641 | 5,126,561 | ||||||||||
| Diluted | 5,108,738 | 5,163,042 | ||||||||||
| Regular dividends declared per share | $ | 0.15 | $ | - | ||||||||
Randolph Bancorp, Inc.
Consolidated Statements of Operations Trend
(Dollars in thousands except per share amounts)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Loans | $ | 5,923 | $ | 6,226 | $ | 5,505 | $ | 5,508 | $ | 5,532 | ||||||||||
| Securities-taxable | 217 | 219 | 223 | 240 | 283 | |||||||||||||||
| Securities-tax exempt | 4 | 4 | 6 | 6 | 6 | |||||||||||||||
| Interest-bearing deposits and certificates of deposit | 13 | 4 | 8 | 7 | 7 | |||||||||||||||
| Total interest and dividend income | 6,157 | 6,453 | 5,742 | 5,761 | 5,828 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 308 | 299 | 345 | 438 | 541 | |||||||||||||||
| Borrowings | 155 | 178 | 198 | 232 | 247 | |||||||||||||||
| Total interest expense | 463 | 477 | 543 | 670 | 788 | |||||||||||||||
| Net interest income | 5,694 | 5,976 | 5,199 | 5,091 | 5,040 | |||||||||||||||
| Provision (credit) for loan losses | (108 | ) | (90 | ) | (27 | ) | (213 | ) | 215 | |||||||||||
| Net interest income after provision (credit) for loan losses | 5,802 | 6,066 | 5,226 | 5,304 | 4,825 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Customer service fees | 422 | 410 | 419 | 367 | 381 | |||||||||||||||
| Gain on loan origination and sale activities, net | 3,723 | 7,229 | 5,740 | 10,993 | 14,620 | |||||||||||||||
| Mortgage servicing fees, net | 257 | 274 | 381 | 779 | 275 | |||||||||||||||
| Increase in cash surrender value of life insurance | 41 | 41 | 41 | 40 | 45 | |||||||||||||||
| Other | 92 | 195 | 235 | 244 | 266 | |||||||||||||||
| Total non-interest income | 4,535 | 8,149 | 6,816 | 12,423 | 15,587 | |||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Salaries and employee benefits | 6,084 | 6,381 | 7,310 | 8,437 | 8,722 | |||||||||||||||
| Occupancy and equipment | 713 | 714 | 621 | 744 | 1,150 | |||||||||||||||
| Data processing | 237 | 367 | 301 | 263 | 280 | |||||||||||||||
| Professional fees | 325 | 490 | 323 | 561 | 389 | |||||||||||||||
| Marketing | 245 | 134 | 200 | 170 | 231 | |||||||||||||||
| FDIC insurance | 55 | 54 | 54 | 54 | 51 | |||||||||||||||
| Other non-interest expenses | 1,562 | 1,719 | 1,818 | 1,722 | 2,104 | |||||||||||||||
| Total non-interest expenses | 9,221 | 9,859 | 10,627 | 11,951 | 12,927 | |||||||||||||||
| Income before income taxes | 1,116 | 4,356 | 1,415 | 5,776 | 7,485 | |||||||||||||||
| Income tax expense (benefit) | 330 | 1,230 | (162 | ) | 1,664 | 2,211 | ||||||||||||||
| Net income | $ | 786 | $ | 3,126 | $ | 1,577 | $ | 4,112 | $ | 5,274 | ||||||||||
| Net income per share: | ||||||||||||||||||||
| Basic | $ | 0.17 | $ | 0.64 | $ | 0.32 | $ | 0.81 | $ | 1.03 | ||||||||||
| Diluted | $ | 0.16 | $ | 0.62 | $ | 0.31 | $ | 0.78 | $ | 1.01 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 4,743,833 | 4,869,155 | 4,921,182 | 5,056,165 | 5,135,069 | |||||||||||||||
| Diluted | 4,993,750 | 5,074,676 | 5,135,582 | 5,254,907 | 5,244,414 | |||||||||||||||
| Regular dividends declared per share | $ | 0.15 | $ | - | $ | - | $ | - | $ | - | ||||||||||
Randolph Bancorp, Inc.
Average Balances/Yields
(Dollars in thousands)
(Unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||||||||||
| Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||||||||||||
| (Dollars in thousands) | Balance | Paid | Rate (7) | Balance | Paid | Rate (7) | Balance | Paid | Rate (7) | ||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||
| 1-4 family residential (1) | $ | 319,855 | $ | 2,790 | 3.46 | % | $ | 345,576 | $ | 3,021 | 3.47 | % | $ | 332,349 | $ | 3,027 | 3.62 | % | |||||||||||||||||
| Home equity | 57,183 | 480 | 3.33 | % | 53,345 | 475 | 3.53 | % | 47,844 | 436 | 3.63 | % | |||||||||||||||||||||||
| Commercial real estate | 186,943 | 1,880 | 3.99 | % | 174,319 | 1,809 | 4.12 | % | 134,766 | 1,342 | 3.96 | % | |||||||||||||||||||||||
| Construction | 34,246 | 331 | 3.83 | % | 32,690 | 310 | 3.76 | % | 32,101 | 325 | 4.03 | % | |||||||||||||||||||||||
| Total real estate loans | 598,227 | 5,481 | 3.63 | % | 605,930 | 5,615 | 3.68 | % | 547,060 | 5,130 | 3.73 | % | |||||||||||||||||||||||
| Commercial and industrial | 18,311 | 331 | 7.17 | % | 22,693 | 493 | 8.62 | % | 21,378 | 258 | 4.80 | % | |||||||||||||||||||||||
| Consumer | 8,313 | 111 | 5.30 | % | 12,820 | 118 | 3.65 | % | 11,564 | 144 | 4.95 | % | |||||||||||||||||||||||
| Total loans | 624,851 | 5,923 | 3.76 | % | 641,443 | 6,226 | 3.85 | % | 580,002 | 5,532 | 3.79 | % | |||||||||||||||||||||||
| Investment securities(2) (3) | 54,314 | 222 | 1.62 | % | 54,229 | 224 | 1.64 | % | 58,329 | 290 | 1.98 | % | |||||||||||||||||||||||
| Interest-earning deposits | 41,161 | 13 | 0.13 | % | 11,002 | 4 | 0.14 | % | 30,573 | 7 | 0.09 | % | |||||||||||||||||||||||
| Total interest-earning assets | 720,326 | 6,158 | 3.39 | % | 706,674 | 6,454 | 3.62 | % | 668,904 | 5,829 | 3.47 | % | |||||||||||||||||||||||
| Noninterest-earning assets | 43,478 | 44,614 | 45,015 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 763,804 | $ | 751,288 | $ | 713,919 | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Savings accounts | 191,464 | 72 | 0.15 | % | 189,254 | 76 | 0.16 | % | 181,653 | 142 | 0.31 | % | |||||||||||||||||||||||
| NOW accounts | 62,838 | 29 | 0.18 | % | 61,951 | 23 | 0.15 | % | 59,005 | 43 | 0.29 | % | |||||||||||||||||||||||
| Money market accounts | 77,140 | 36 | 0.19 | % | 73,662 | 41 | 0.22 | % | 75,106 | 62 | 0.33 | % | |||||||||||||||||||||||
| Term certificates | 135,406 | 171 | 0.50 | % | 113,787 | 159 | 0.55 | % | 112,260 | 294 | 1.04 | % | |||||||||||||||||||||||
| Total interest-bearing deposits | 466,848 | 308 | 0.26 | % | 438,654 | 299 | 0.27 | % | 428,024 | 541 | 0.50 | % | |||||||||||||||||||||||
| FHLBB and FRB advances | 53,592 | 155 | 1.15 | % | 64,047 | 178 | 1.10 | % | 77,584 | 247 | 1.27 | % | |||||||||||||||||||||||
| Total interest-bearing liabilities | 520,440 | 463 | 0.35 | % | 502,701 | 477 | 0.38 | % | 505,608 | 788 | 0.62 | % | |||||||||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 127,486 | 126,165 | 94,540 | ||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 13,305 | 19,021 | 13,539 | ||||||||||||||||||||||||||||||||
| Total liabilities | 661,231 | 647,887 | 613,687 | ||||||||||||||||||||||||||||||||
| Total stockholders' equity | 102,573 | 103,401 | 100,232 | ||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 763,804 | $ | 751,288 | $ | 713,919 | |||||||||||||||||||||||||||||
| Net interest income | $ | 5,695 | $ | 5,977 | $ | 5,041 | |||||||||||||||||||||||||||||
| Interest rate spread(4) | 3.04 | % | 3.24 | % | 2.85 | % | |||||||||||||||||||||||||||||
| Net interest-earning assets(5) | $ | 199,886 | $ | 203,973 | $ | 163,296 | |||||||||||||||||||||||||||||
| Net interest margin(6) | 3.14 | % | 3.36 | % | 3.00 | % | |||||||||||||||||||||||||||||
| Cost of deposits (8) | 0.21 | % | 0.21 | % | 0.41 | % | |||||||||||||||||||||||||||||
| Cost of funds (9) | 0.28 | % | 0.30 | % | 0.52 | % | |||||||||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 138.41 | % | 140.58 | % | 132.30 | % | |||||||||||||||||||||||||||||
(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 December 31, 2021, September 30, 2021 and December 31, 2020, respectively.
(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
(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/Yields
(Dollars in thousands)
(Unaudited)
| Year to Date | |||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | ||||||||||||||||||
| Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | ||||||||||||||||||
| (Dollars in thousands) | Balance | Paid | Rate (7) | Balance | Paid | Rate (7) | |||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||
| 1-4 family residential (1) | $ | 330,326 | $ | 11,548 | 3.50 | % | $ | 318,332 | $ | 12,142 | 3.81 | % | |||||||||||
| Home equity | 52,202 | 1,800 | 3.45 | % | 44,577 | 1,766 | 3.96 | % | |||||||||||||||
| Commercial real estate | 166,973 | 6,761 | 4.05 | % | 132,948 | 5,366 | 4.04 | % | |||||||||||||||
| Construction | 31,810 | 1,225 | 3.85 | % | 34,408 | 1,449 | 4.21 | % | |||||||||||||||
| Total real estate loans | 581,311 | 21,334 | 3.67 | % | 530,265 | 20,723 | 3.91 | % | |||||||||||||||
| Commercial and industrial | 22,082 | 1,364 | 6.18 | % | 17,848 | 781 | 4.38 | % | |||||||||||||||
| Consumer | 10,034 | 464 | 4.62 | % | 13,799 | 708 | 5.13 | % | |||||||||||||||
| Total loans | 613,427 | 23,162 | 3.78 | % | 561,912 | 22,212 | 3.95 | % | |||||||||||||||
| Investment securities(2) (3) | 55,421 | 923 | 1.67 | % | 58,233 | 1,306 | 2.24 | % | |||||||||||||||
| Interest-earning deposits | 32,841 | 32 | 0.10 | % | 30,277 | 76 | 0.25 | % | |||||||||||||||
| Total interest-earning assets | 701,689 | 24,117 | 3.44 | % | 650,422 | 23,594 | 3.63 | % | |||||||||||||||
| Noninterest-earning assets | 42,608 | 39,395 | |||||||||||||||||||||
| Total assets | $ | 744,297 | $ | 689,817 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Savings accounts | 190,865 | 335 | 0.18 | % | 161,502 | 831 | 0.51 | % | |||||||||||||||
| NOW accounts | 65,978 | 138 | 0.21 | % | 55,396 | 185 | 0.33 | % | |||||||||||||||
| Money market accounts | 74,816 | 174 | 0.23 | % | 71,817 | 456 | 0.63 | % | |||||||||||||||
| Term certificates | 112,802 | 743 | 0.66 | % | 147,655 | 2,305 | 1.56 | % | |||||||||||||||
| Total interest-bearing deposits | 444,461 | 1,390 | 0.31 | % | 436,370 | 3,777 | 0.87 | % | |||||||||||||||
| FHLBB and FRB advances | 59,963 | 763 | 1.27 | % | 71,661 | 943 | 1.32 | % | |||||||||||||||
| Total interest-bearing liabilities | 504,424 | 2,153 | 0.43 | % | 508,031 | 4,720 | 0.93 | % | |||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
| Noninterest-bearing deposits | 121,378 | 80,957 | |||||||||||||||||||||
| Other noninterest-bearing liabilities | 15,331 | 12,384 | |||||||||||||||||||||
| Total liabilities | 641,133 | 601,372 | |||||||||||||||||||||
| Total stockholders' equity | 103,164 | 88,445 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 744,297 | $ | 689,817 | |||||||||||||||||||
| Net interest income | $ | 21,964 | $ | 18,874 | |||||||||||||||||||
| Interest rate spread(4) | 3.01 | % | 2.70 | % | |||||||||||||||||||
| Net interest-earning assets(5) | $ | 197,265 | $ | 142,391 | |||||||||||||||||||
| Net interest margin(6) | 3.13 | % | 2.90 | % | |||||||||||||||||||
| Cost of deposits (8) | 0.25 | % | 0.73 | % | |||||||||||||||||||
| Cost of funds (9) | 0.34 | % | 0.80 | % | |||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 139.11 | % | 128.03 | % | |||||||||||||||||||
(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 $4,000 and $5,000 for the years ended December 31, 2021 and 2020, respectively.
(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
(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 | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | $ | 319,855 | $ | 345,576 | $ | 319,087 | $ | 336,805 | $ | 332,349 | ||||||||||
| Home equity | 57,183 | 53,345 | 49,789 | 48,383 | 47,844 | |||||||||||||||
| Commercial real estate | 186,943 | 174,319 | 159,423 | 146,683 | 134,766 | |||||||||||||||
| Construction | 34,246 | 32,690 | 29,902 | 30,350 | 32,101 | |||||||||||||||
| Total real estate loans | 598,227 | 605,930 | 558,201 | 562,221 | 547,060 | |||||||||||||||
| Commercial and industrial | 18,311 | 22,693 | 25,497 | 21,860 | 21,378 | |||||||||||||||
| Consumer | 8,313 | 12,820 | 9,052 | 9,940 | 11,564 | |||||||||||||||
| Total loans | 624,851 | 641,443 | 592,750 | 594,021 | 580,002 | |||||||||||||||
| Investment securities | 54,314 | 54,229 | 55,376 | 57,818 | 58,329 | |||||||||||||||
| Interest-earning deposits | 41,161 | 11,002 | 43,888 | 35,492 | 30,573 | |||||||||||||||
| Total interest-earning assets | 720,326 | 706,674 | 692,014 | 687,331 | 668,904 | |||||||||||||||
| Non-interest earning assets | 43,478 | 44,614 | 40,257 | 42,045 | 45,015 | |||||||||||||||
| Total assets | $ | 763,804 | $ | 751,288 | $ | 732,271 | $ | 729,376 | $ | 713,919 | ||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Savings accounts | $ | 191,464 | $ | 189,254 | $ | 192,434 | $ | 190,313 | $ | 181,653 | ||||||||||
| NOW accounts | 62,838 | 61,951 | 69,730 | 69,511 | 59,005 | |||||||||||||||
| Money market accounts | 77,140 | 73,662 | 72,469 | 75,994 | 75,106 | |||||||||||||||
| Term certificates | 135,406 | 113,787 | 104,604 | 96,978 | 112,260 | |||||||||||||||
| Total interest-bearing deposits | 466,848 | 438,654 | 439,237 | 432,796 | 428,024 | |||||||||||||||
| FHLBB and FRB advances | 53,592 | 64,047 | 51,502 | 70,857 | 77,584 | |||||||||||||||
| Total interest-bearing liabilities | 520,440 | 502,701 | 490,739 | 503,653 | 505,608 | |||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||
| Noninterest-bearing deposits | 127,486 | 126,165 | 124,656 | 106,929 | 94,540 | |||||||||||||||
| Other noninterest-bearing liabilities | 13,305 | 19,021 | 13,606 | 15,375 | 13,539 | |||||||||||||||
| Total liabilities | 661,231 | 647,887 | 629,001 | 625,957 | 613,687 | |||||||||||||||
| Total stockholders' equity | 102,573 | 103,401 | 103,270 | 103,419 | 100,232 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 763,804 | $ | 751,288 | $ | 732,271 | $ | 729,376 | $ | 713,919 | ||||||||||
Randolph Bancorp, Inc.
Interest Earned and Paid Trend
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | $ | 2,790 | $ | 3,021 | $ | 2,763 | $ | 2,974 | $ | 3,027 | ||||||||||
| Home equity | 480 | 475 | 412 | 433 | 436 | |||||||||||||||
| Commercial real estate | 1,880 | 1,809 | 1,666 | 1,406 | 1,342 | |||||||||||||||
| Construction | 331 | 310 | 289 | 295 | 325 | |||||||||||||||
| Total real estate loans | 5,481 | 5,615 | 5,130 | 5,108 | 5,130 | |||||||||||||||
| Commercial and industrial | 331 | 493 | 266 | 274 | 258 | |||||||||||||||
| Consumer | 111 | 118 | 109 | 126 | 144 | |||||||||||||||
| Total loans | 5,923 | 6,226 | 5,505 | 5,508 | 5,532 | |||||||||||||||
| Investment securities | 222 | 224 | 230 | 247 | 290 | |||||||||||||||
| Interest-earning deposits | 13 | 4 | 8 | 7 | 7 | |||||||||||||||
| Total interest-earning assets | 6,158 | 6,454 | 5,743 | 5,762 | 5,829 | |||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Savings accounts | $ | 72 | $ | 76 | $ | 89 | $ | 98 | $ | 142 | ||||||||||
| NOW accounts | 29 | 23 | 38 | 48 | 43 | |||||||||||||||
| Money market accounts | 36 | 41 | 43 | 54 | 62 | |||||||||||||||
| Term certificates | 171 | 159 | 175 | 238 | 294 | |||||||||||||||
| Total interest-bearing deposits | 308 | 299 | 345 | 438 | 541 | |||||||||||||||
| FHLBB and FRB advances | 155 | 178 | 198 | 232 | 247 | |||||||||||||||
| Total interest-bearing liabilities | 463 | 477 | 543 | 670 | 788 | |||||||||||||||
| Net interest income | 5,695 | 5,977 | 5,200 | 5,092 | 5,041 | |||||||||||||||
Randolph Bancorp, Inc.
Average Yield Trend(1)
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | 3.46 | % | 3.47 | % | 3.47 | % | 3.58 | % | 3.62 | % | ||||||||||
| Home equity | 3.33 | % | 3.53 | % | 3.32 | % | 3.63 | % | 3.63 | % | ||||||||||
| Commercial real estate | 3.99 | % | 4.12 | % | 4.19 | % | 3.89 | % | 3.96 | % | ||||||||||
| Construction | 3.83 | % | 3.76 | % | 3.88 | % | 3.94 | % | 4.03 | % | ||||||||||
| Total real estate loans | 3.63 | % | 3.68 | % | 3.69 | % | 3.68 | % | 3.73 | % | ||||||||||
| Commercial and industrial | 7.17 | % | 8.62 | % | 4.18 | % | 5.08 | % | 4.80 | % | ||||||||||
| Consumer | 5.30 | % | 3.65 | % | 4.83 | % | 5.14 | % | 4.95 | % | ||||||||||
| Total loans | 3.76 | % | 3.85 | % | 3.73 | % | 3.76 | % | 3.79 | % | ||||||||||
| Investment securities | 1.62 | % | 1.64 | % | 1.67 | % | 1.73 | % | 1.98 | % | ||||||||||
| Interest-earning deposits | 0.13 | % | 0.14 | % | 0.07 | % | 0.08 | % | 0.09 | % | ||||||||||
| Total interest-earning assets | 3.39 | % | 3.62 | % | 3.33 | % | 3.40 | % | 3.47 | % | ||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Savings accounts | 0.15 | % | 0.16 | % | 0.19 | % | 0.21 | % | 0.31 | % | ||||||||||
| NOW accounts | 0.18 | % | 0.15 | % | 0.22 | % | 0.28 | % | 0.29 | % | ||||||||||
| Money market accounts | 0.19 | % | 0.22 | % | 0.24 | % | 0.29 | % | 0.33 | % | ||||||||||
| Term certificates | 0.50 | % | 0.55 | % | 0.67 | % | 1.00 | % | 1.04 | % | ||||||||||
| Total interest-bearing deposits | 0.26 | % | 0.27 | % | 0.32 | % | 0.41 | % | 0.50 | % | ||||||||||
| FHLBB and FRB advances | 1.15 | % | 1.10 | % | 1.54 | % | 1.33 | % | 1.27 | % | ||||||||||
| Total interest-bearing liabilities | 0.35 | % | 0.38 | % | 0.44 | % | 0.54 | % | 0.62 | % | ||||||||||
| Interest rate spread | 3.04 | % | 3.24 | % | 2.89 | % | 2.86 | % | 2.85 | % | ||||||||||
| Net interest rate margin | 3.14 | % | 3.36 | % | 3.01 | % | 3.00 | % | 3.00 | % | ||||||||||
| Cost of deposits | 0.21 | % | 0.21 | % | 0.25 | % | 0.33 | % | 0.41 | % | ||||||||||
| Cost of funds | 0.28 | % | 0.30 | % | 0.35 | % | 0.45 | % | 0.52 | % | ||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 138.41 | % | 140.58 | % | 141.01 | % | 136.47 | % | 132.30 | % | ||||||||||
(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 | ||||||||||||
| December 31, 2021 vs. September 30, 2021 | ||||||||||||
| Increase (Decrease) | Total | |||||||||||
| Due to Changes in | Increase | |||||||||||
| Volume | Rate | (Decrease) | ||||||||||
| Interest-earning assets: | ||||||||||||
| Loans: | ||||||||||||
| 1-4 family residential | $ | (224 | ) | $ | (7 | ) | (231 | ) | ||||
| Home equity | 33 | (28 | ) | 5 | ||||||||
| Commercial real estate | 128 | (57 | ) | 71 | ||||||||
| Construction | 15 | 6 | 21 | |||||||||
| Total real estate loans | (48 | ) | (86 | ) | (134 | ) | ||||||
| Commercial and industrial | (86 | ) | (76 | ) | (162 | ) | ||||||
| Consumer | (32 | ) | 26 | (6 | ) | |||||||
| Total loans | (166 | ) | (136 | ) | (302 | ) | ||||||
| Investment securities | - | (3 | ) | (3 | ) | |||||||
| Interest-earning deposits | 10 | (1 | ) | 9 | ||||||||
| Total interest-earning assets | (156 | ) | (140 | ) | (296 | ) | ||||||
| Interest-bearing liabilities: | ||||||||||||
| Savings accounts | 1 | (5 | ) | (4 | ) | |||||||
| NOW accounts | - | 6 | 6 | |||||||||
| Money market accounts | 2 | (7 | ) | (5 | ) | |||||||
| Term certificates | 28 | (16 | ) | 12 | ||||||||
| Total interest-bearing deposits | 31 | (22 | ) | 9 | ||||||||
| FHLBB and FRB advances | (28 | ) | 5 | (23 | ) | |||||||
| Total interest-bearing liabilities | 3 | (17 | ) | (14 | ) | |||||||
| Change in net interest income | $ | (159 | ) | $ | (123 | ) | $ | (282 | ) | |||
Randolph Bancorp, Inc.
Rate/Volume Analysis
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||
| December 31, 2021 vs. 2020 | ||||||||||||
| Increase (Decrease) | Total | |||||||||||
| Due to Changes in | Increase | |||||||||||
| Volume | Rate | (Decrease) | ||||||||||
| Interest-earning assets: | ||||||||||||
| Loans: | ||||||||||||
| 1-4 family residential | $ | (108 | ) | $ | (129 | ) | (237 | ) | ||||
| Home equity | 81 | (37 | ) | 44 | ||||||||
| Commercial real estate | 512 | 26 | 538 | |||||||||
| Construction | 22 | (16 | ) | 6 | ||||||||
| Total real estate loans | 507 | (156 | ) | 351 | ||||||||
| Commercial and industrial | (33 | ) | 106 | 73 | ||||||||
| Consumer | (38 | ) | 6 | (32 | ) | |||||||
| Total loans | 436 | (44 | ) | 392 | ||||||||
| Investment securities | (19 | ) | (50 | ) | (69 | ) | ||||||
| Interest-earning deposits | 2 | 4 | 6 | |||||||||
| Total interest-earning assets | 419 | (90 | ) | 329 | ||||||||
| Interest-bearing liabilities: | ||||||||||||
| Savings accounts | 8 | (78 | ) | (70 | ) | |||||||
| NOW accounts | 3 | (17 | ) | (14 | ) | |||||||
| Money market accounts | 2 | (28 | ) | (26 | ) | |||||||
| Term certificates | 52 | (175 | ) | (123 | ) | |||||||
| Total interest-bearing deposits | 65 | (298 | ) | (233 | ) | |||||||
| FHLBB and FRB advances | (71 | ) | (21 | ) | (92 | ) | ||||||
| Total interest-bearing liabilities | (6 | ) | (319 | ) | (325 | ) | ||||||
| Change in net interest income | $ | 425 | $ | 229 | $ | 654 | ||||||
Randolph Bancorp, Inc.
Rate/Volume Analysis
(Dollars in thousands)
(Unaudited)
| Year to Date | ||||||||||||
| December 31, 2021 vs. 2020 | ||||||||||||
| Increase (Decrease) | Total | |||||||||||
| Due to Changes in | Increase | |||||||||||
| Volume | Rate | (Decrease) | ||||||||||
| Interest-earning assets: | ||||||||||||
| Loans: | ||||||||||||
| 1-4 family residential | $ | 445 | $ | (1,039 | ) | (594 | ) | |||||
| Home equity | 280 | (246 | ) | 34 | ||||||||
| Commercial real estate | 1,368 | 27 | 1,395 | |||||||||
| Construction | (105 | ) | (119 | ) | (224 | ) | ||||||
| Total real estate loans | 1,988 | (1,377 | ) | 611 | ||||||||
| Commercial and industrial | 157 | 426 | 583 | |||||||||
| Consumer | (179 | ) | (65 | ) | (244 | ) | ||||||
| Total loans | 1,966 | (1,016 | ) | 950 | ||||||||
| Investment securities | (60 | ) | (323 | ) | (383 | ) | ||||||
| Interest-earning deposits | 6 | (50 | ) | (44 | ) | |||||||
| Total interest-earning assets | 1,912 | (1,389 | ) | 523 | ||||||||
| Interest-bearing liabilities: | ||||||||||||
| Savings accounts | 130 | (626 | ) | (496 | ) | |||||||
| NOW accounts | 31 | (78 | ) | (47 | ) | |||||||
| Money market accounts | 18 | (300 | ) | (282 | ) | |||||||
| Term certificates | (453 | ) | (1,109 | ) | (1,562 | ) | ||||||
| Total interest-bearing deposits | (274 | ) | (2,113 | ) | (2,387 | ) | ||||||
| FHLBB and FRB advances | (150 | ) | (30 | ) | (180 | ) | ||||||
| Total interest-bearing liabilities | (424 | ) | (2,143 | ) | (2,567 | ) | ||||||
| Change in net interest income | $ | 2,336 | $ | 754 | $ | 3,090 | ||||||
Randolph Bancorp, Inc.
Quarterly Trend in Mortgage Banking Income
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||
| Gain on loan origination and sale activities, net | ||||||||||||||||||||
| Gain on sale of mortgages and realized gain from derivative financial instruments, net | $ | 4,818 | $ | 6,339 | $ | 6,545 | $ | 15,876 | $ | 12,907 | ||||||||||
| Net change in fair value of loans held for sale and portfolio loans accounted for at fair value | (1,360 | ) | 549 | 1,091 | (3,816 | ) | 896 | |||||||||||||
| Capitalized residential mortgage loan servicing rights | 942 | 783 | 1,476 | 2,797 | 2,296 | |||||||||||||||
| Net change in fair value of derivative loan commitments and forward loan sale commitments | (677 | ) | (442 | ) | (3,372 | ) | (3,864 | ) | (1,479 | ) | ||||||||||
| Gain on loan origination and sales activities, net | $ | 3,723 | $ | 7,229 | $ | 5,740 | $ | 10,993 | $ | 14,620 | ||||||||||
| Mortgage servicing fees, net | ||||||||||||||||||||
| Residential mortgage loan servicing fees | $ | 1,355 | $ | 1,282 | $ | 1,205 | $ | 1,170 | $ | 1,143 | ||||||||||
| Amortization of residential mortgage loan servicing rights | (831 | ) | (795 | ) | (759 | ) | (812 | ) | (781 | ) | ||||||||||
| Release (provision) to the valuation allowance of mortgage loan servicing rights | 43 | 39 | (65 | ) | 421 | (87 | ) | |||||||||||||
| Sub-servicer expenses (1) | (310 | ) | (252 | ) | - | - | - | |||||||||||||
| Mortgage servicing fees, net | $ | 257 | $ | 274 | $ | 381 | $ | 779 | $ | 275 | ||||||||||
| Total gain on loan origination and sales activities and mortgage servicing fees | $ | 3,980 | $ | 7,503 | $ | 6,121 | $ | 11,772 | $ | 14,895 | ||||||||||
| Principal balance of loans originated for sale | $ | 222,644 | $ | 260,519 | $ | 309,033 | $ | 487,675 | $ | 443,948 | ||||||||||
| Principal balance of loans sold | $ | 297,316 | $ | 260,473 | $ | 342,762 | $ | 503,285 | $ | 426,485 | ||||||||||
| Ending notional amount of derivative loan commitments | $ | 85,887 | $ | 158,085 | $ | 139,748 | $ | 239,509 | $ | 396,551 | ||||||||||
| Loans held for sale, at fair value | $ | 44,766 | $ | 75,400 | $ | 74,277 | $ | 93,176 | $ | 119,112 | ||||||||||
| Margin on loans sold (2) | 1.94 | % | 2.73 | % | 2.34 | % | 3.71 | % | 3.56 | % | ||||||||||
(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.
Year-to-Date Trend in Mortgage Banking Income
(Dollars in thousands)
(Unaudited)
| Year-to-Date | ||||||||
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Gain on loan origination and sale activities, net | ||||||||
| Gain on sale of mortgages and realized gain from derivative financial instruments, net | $ | 33,578 | $ | 34,203 | ||||
| Net change in fair value of loans held for sale and portfolio loans accounted for at fair value | (3,536 | ) | 3,263 | |||||
| Capitalized residential mortgage loan servicing rights | 5,998 | 8,428 | ||||||
| Net change in fair value of derivative loan commitments and forward loan sale commitments | (8,355 | ) | 8,342 | |||||
| Gain on loan origination and sales activities, net | $ | 27,685 | $ | 54,236 | ||||
| Mortgage servicing fees, net | ||||||||
| Residential mortgage loan servicing fees | $ | 5,012 | $ | 3,458 | ||||
| Amortization of residential mortgage loan servicing rights | (3,197 | ) | (2,543 | ) | ||||
| Release (provision) to the valuation allowance of mortgage loan servicing rights | 438 | (2,068 | ) | |||||
| Sub-servicer expenses (1) | (562 | ) | - | |||||
| Mortgage servicing fees, net | $ | 1,691 | $ | (1,153 | ) | |||
| Total gain on loan origination and sales activities and mortgage servicing fees | $ | 29,376 | $ | 53,083 | ||||
| Principal balance of loans originated for sale | $ | 1,279,871 | $ | 1,556,587 | ||||
| Principal balance of loans sold | $ | 1,403,836 | $ | 1,497,643 | ||||
| Ending notional amount of derivative loan commitments | $ | 85,887 | $ | 396,551 | ||||
| Loans held for sale, at fair value | $ | 44,766 | $ | 119,112 | ||||
| Margin on loans sold (2) | 2.82 | % | 2.85 | % | ||||
(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 December 31, 2021 | ||||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | ||||||||||
| Net interest income | $ | 4,916 | $ | 778 | $ | 5,694 | ||||||
| Provision (credit) for loan losses | (108 | ) | - | (108 | ) | |||||||
| Net interest income after provision (credit) for loan losses | 5,024 | 778 | 5,802 | |||||||||
| Non-interest income: | ||||||||||||
| Customer service fees | 413 | 9 | 422 | |||||||||
| Gain on loan origination and sale activities, net (1) | - | 4,190 | 4,190 | |||||||||
| Mortgage servicing fees, net | (213 | ) | 470 | 257 | ||||||||
| Other | 16 | 117 | 133 | |||||||||
| Total non-interest income | 216 | 4,786 | 5,002 | |||||||||
| Non-interest expenses: | ||||||||||||
| Salaries and employee benefits | 1,741 | 4,343 | 6,084 | |||||||||
| Occupancy and equipment | 500 | 213 | 713 | |||||||||
| Other non-interest expenses | 1,038 | 1,386 | 2,424 | |||||||||
| Total non-interest expenses | 3,279 | 5,942 | 9,221 | |||||||||
| Income (loss) before income taxes and elimination of inter-segment profit | $ | 1,961 | $ | (378 | ) | 1,583 | ||||||
| Elimination of inter-segment profit | (467 | ) | ||||||||||
| Income before income taxes | 1,116 | |||||||||||
| Income tax expense | 330 | |||||||||||
| Net income | $ | 786 | ||||||||||
(1) Before elimination of inter-segment profit.
The information above was derived from the internal management reporting system used to measure performance of the segments.
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Three Months Ended September 30, 2021 | ||||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | ||||||||||
| Net interest income | $ | 5,243 | $ | 733 | $ | 5,976 | ||||||
| Provision (credit) for loan losses | (90 | ) | - | (90 | ) | |||||||
| Net interest income after provision (credit) for loan losses | 5,333 | 733 | 6,066 | |||||||||
| Non-interest income: | ||||||||||||
| Customer service fees | 394 | 16 | 410 | |||||||||
| Gain on loan origination and sale activities, net (1) | - | 7,925 | 7,925 | |||||||||
| Mortgage servicing fees, net | (222 | ) | 496 | 274 | ||||||||
| Other | 105 | 131 | 236 | |||||||||
| Total non-interest income | 277 | 8,568 | 8,845 | |||||||||
| Non-interest expenses: | ||||||||||||
| Salaries and employee benefits | 1,742 | 4,639 | 6,381 | |||||||||
| Occupancy and equipment | 473 | 241 | 714 | |||||||||
| Other non-interest expenses | 1,046 | 1,718 | 2,764 | |||||||||
| Total non-interest expenses | 3,261 | 6,598 | 9,859 | |||||||||
| Income before income taxes and elimination of inter-segment profit | $ | 2,349 | $ | 2,703 | 5,052 | |||||||
| Elimination of inter-segment profit | (696 | ) | ||||||||||
| Income before income taxes | 4,356 | |||||||||||
| Income tax expense | 1,230 | |||||||||||
| Net income | $ | 3,126 | ||||||||||
(1) Before elimination of inter-segment profit.
The information above was derived from the internal management reporting system used to measure performance of the segments.
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Three Months Ended December 31, 2020 | ||||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | ||||||||||
| Net interest income | $ | 4,265 | $ | 775 | $ | 5,040 | ||||||
| Provision for loan losses | 215 | - | 215 | |||||||||
| Net interest income after provision for loan losses | 4,050 | 775 | 4,825 | |||||||||
| Non-interest income: | ||||||||||||
| Customer service fees | 353 | 28 | 381 | |||||||||
| Gain on loan origination and sale activities, net (1) | - | 15,062 | 15,062 | |||||||||
| Mortgage servicing fees, net | (100 | ) | 375 | 275 | ||||||||
| Other | 147 | 164 | 311 | |||||||||
| Total non-interest income | 400 | 15,629 | 16,029 | |||||||||
| Non-interest expenses: | ||||||||||||
| Salaries and employee benefits | 2,178 | 6,544 | 8,722 | |||||||||
| Occupancy and equipment | 465 | 685 | 1,150 | |||||||||
| Other non-interest expenses | 1,942 | 1,113 | 3,055 | |||||||||
| Total non-interest expenses | 4,585 | 8,342 | 12,927 | |||||||||
| Income (loss) before income taxes and elimination of inter-segment profit | $ | (135 | ) | $ | 8,062 | 7,927 | ||||||
| Elimination of inter-segment profit | (442 | ) | ||||||||||
| Income before income taxes | 7,485 | |||||||||||
| Income tax expense | 2,211 | |||||||||||
| Net income | $ | 5,274 | ||||||||||
(1) Before elimination of inter-segment profit.
The information above was derived from the internal management reporting system used to measure performance of the segments.
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Year Ended December 31, 2021 | ||||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | ||||||||||
| Net interest income | $ | 18,894 | $ | 3,066 | $ | 21,960 | ||||||
| Provision (credit) for loan losses | (438 | ) | - | (438 | ) | |||||||
| Net interest income after provision (credit) for loan losses | 19,332 | 3,066 | 22,398 | |||||||||
| Non-interest income: | ||||||||||||
| Customer service fees | 1,538 | 80 | 1,618 | |||||||||
| Gain on loan origination and sale activities, net (1) | - | 30,347 | 30,347 | |||||||||
| Mortgage servicing fees, net | (622 | ) | 2,313 | 1,691 | ||||||||
| Other | 428 | 501 | 929 | |||||||||
| Total non-interest income | 1,344 | 33,241 | 34,585 | |||||||||
| Non-interest expenses: | ||||||||||||
| Salaries and employee benefits | 7,031 | 21,181 | 28,212 | |||||||||
| Occupancy and equipment | 1,825 | 967 | 2,792 | |||||||||
| Other non-interest expenses | 4,435 | 6,219 | 10,654 | |||||||||
| Total non-interest expenses | 13,291 | 28,367 | 41,658 | |||||||||
| Income before income taxes and elimination of inter-segment profit | $ | 7,385 | $ | 7,940 | 15,325 | |||||||
| Elimination of inter-segment profit | (2,662 | ) | ||||||||||
| Income before income taxes | 12,663 | |||||||||||
| Income tax expense | 3,062 | |||||||||||
| Net income | $ | 9,601 | ||||||||||
(1) Before elimination of inter-segment profit.
The information above was derived from the internal management reporting system used to measure performance of the segments.
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Year Ended December 31, 2020 | ||||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | ||||||||||
| Net interest income | $ | 16,235 | $ | 2,632 | $ | 18,867 | ||||||
| Provision for loan losses | 2,553 | - | 2,553 | |||||||||
| Net interest income after provision for loan losses | 13,682 | 2,632 | 16,314 | |||||||||
| Non-interest income: | ||||||||||||
| Customer service fees | 1,180 | 103 | 1,283 | |||||||||
| Gain on loan origination and sale activities, net (1) | - | 55,729 | 55,729 | |||||||||
| Mortgage servicing fees, net | (381 | ) | (772 | ) | (1,153 | ) | ||||||
| Other | 465 | 580 | 1,045 | |||||||||
| Total non-interest income | 1,264 | 55,640 | 56,904 | |||||||||
| Non-interest expenses: | ||||||||||||
| Salaries and employee benefits (2) | 9,161 | 24,000 | 33,161 | |||||||||
| Occupancy and equipment | 1,770 | 1,775 | 3,545 | |||||||||
| Other non-interest expenses | 5,228 | 4,382 | 9,610 | |||||||||
| Total non-interest expenses | 16,159 | 30,157 | 46,316 | |||||||||
| Income (loss) before income taxes and elimination of inter-segment profit | $ | (1,213 | ) | $ | 28,115 | 26,902 | ||||||
| Elimination of inter-segment profit | (1,493 | ) | ||||||||||
| Income before income taxes | 25,409 | |||||||||||
| Income tax expense | 5,477 | |||||||||||
| Net income | $ | 19,932 | ||||||||||
(1) Before elimination of inter-segment profit.
(2) Salaries and benefits include the severance and vested stock acceleration costs related to the retirement of the CEO and CFO of the Bank. The total cost of this event was $1.38 million, of which $1.03 million was allocated to the Bank segment and the remainder, $344,000, was allocated to the mortgage segment.
The information above was derived from the internal management reporting system used to measure performance of the segments.
Randolph Bancorp, Inc.
Reconciliation of GAAP to Non-GAAP Net Income
(in thousands, except per share amounts)
Unaudited
| Quarter Ended | ||||||||||||||||||
| December 31, 2021 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 1,116 | $ | 330 | $ | 786 | $ | 0.16 | ||||||||||
| Loss on disposal of fixed assets | Non-interest income | 55 | 16 | 39 | 0.01 | |||||||||||||
| Accrued severance expenses | Non-interest expense | 26 | 7 | 19 | - | |||||||||||||
| Non-GAAP basis | $ | 1,197 | $ | 353 | $ | 844 | $ | 0.17 | ||||||||||
| Quarter Ended | ||||||||||||||||||
| September 30, 2021 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 4,356 | $ | 1,230 | $ | 3,126 | $ | 0.62 | ||||||||||
| Accrued severance expenses | Non-interest expense | 139 | 40 | 99 | 0.02 | |||||||||||||
| Other outsourcing expenses | Non-interest expense | 190 | 54 | 136 | 0.03 | |||||||||||||
| Non-GAAP basis | $ | 4,685 | $ | 1,324 | $ | 3,361 | $ | 0.67 | ||||||||||
| Quarter Ended | ||||||||||||||||||
| June 30, 2021 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision (credit) for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 1,415 | $ | (162 | ) | $ | 1,577 | $ | 0.31 | |||||||||
| Loss on disposal of fixed assets | Non-interest income | 29 | 8 | 21 | - | |||||||||||||
| Accrued severance expenses | Non-interest expense | 145 | 41 | 104 | 0.02 | |||||||||||||
| Other outsourcing expenses | Non-interest expense | 71 | 20 | 51 | 0.01 | |||||||||||||
| Non-GAAP basis | $ | 1,660 | $ | (93 | ) | $ | 1,753 | $ | 0.34 | |||||||||
| Quarter Ended | ||||||||||||||||||
| March 31, 2021 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 5,776 | $ | 1,664 | $ | 4,112 | $ | 0.78 | ||||||||||
| Accrued severance expenses | Non-interest expense | 109 | 31 | 78 | 0.01 | |||||||||||||
| Non-GAAP basis | $ | 5,885 | $ | 1,695 | $ | 4,190 | $ | 0.79 | ||||||||||
| Quarter Ended | ||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income (Loss) Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 7,485 | $ | 2,211 | $ | 5,274 | $ | 1.01 | ||||||||||
| Residential lending office closure | Non-interest expense | 294 | 63 | 231 | 0.04 | |||||||||||||
| COVID-19 related expenses | Non-interest expense | 69 | 15 | 54 | 0.01 | |||||||||||||
| Non-GAAP basis | $ | 7,848 | $ | 2,289 | $ | 5,559 | $ | 1.06 | ||||||||||
Randolph Bancorp, Inc.
Reconciliation of GAAP to Non-GAAP Net Income
(in thousands, except per share amounts)
(Unaudited)
| Year to Date | ||||||||||||||||||
| December 31, 2021 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 12,663 | $ | 3,062 | $ | 9,601 | $ | 1.88 | ||||||||||
| Loss on disposal of fixed assets | Non-interest income | 84 | 24 | 60 | 0.01 | |||||||||||||
| Accrued severance expenses | Non-interest expense | 419 | 120 | 299 | 0.06 | |||||||||||||
| Other outsourcing expenses | Non-interest expense | 261 | 75 | 186 | 0.04 | |||||||||||||
| Non-GAAP basis | $ | 13,427 | $ | 3,281 | $ | 10,146 | $ | 1.99 | ||||||||||
| Year to Date | ||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income Before Taxes | Provision for Income Taxes | Net Income | Earnings per Share (diluted) | |||||||||||||
| GAAP basis | $ | 25,409 | $ | 5,477 | $ | 19,932 | $ | 3.86 | ||||||||||
| Retirement salary and benefits compensation | Non-interest expense | 692 | 149 | 543 | 0.11 | |||||||||||||
| Accelerated vesting of stock-based compensation | Non-interest expense | 683 | 147 | 536 | 0.10 | |||||||||||||
| COVID-19 related expenses | Non-interest expense | 229 | 49 | 180 | 0.03 | |||||||||||||
| Residential lending office closure | Non-interest expense | 294 | 63 | 231 | 0.04 | |||||||||||||
| Accrued severance expenses | Non-interest expense | 69 | 15 | 54 | 0.01 | |||||||||||||
| Non-GAAP basis | $ | 27,376 | $ | 5,900 | $ | 21,476 | $ | 4.15 | ||||||||||
Randolph Bancorp, Inc.
Selected Financial Highlights
(Unaudited)
| At or for the Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2020 | ||||||||||||||||
| Return on average assets: (1, 5) | ||||||||||||||||||||
| GAAP | 0.41 | % | 1.66 | % | 0.86 | % | 2.26 | % | 2.95 | % | ||||||||||
| Non-GAAP (2) | 0.44 | % | 1.79 | % | 0.96 | % | 2.30 | % | 3.11 | % | ||||||||||
| Return on average equity: (1, 6) | ||||||||||||||||||||
| GAAP | 3.07 | % | 12.09 | % | 6.11 | % | 15.90 | % | 21.05 | % | ||||||||||
| Non-GAAP (2) | 3.29 | % | 13.00 | % | 6.79 | % | 16.21 | % | 22.18 | % | ||||||||||
| Net interest margin (10) | 3.14 | % | 3.36 | % | 3.01 | % | 3.00 | % | 3.00 | % | ||||||||||
| Non-interest income to total income: | ||||||||||||||||||||
| GAAP | 44.33 | % | 57.69 | % | 56.73 | % | 70.93 | % | 75.57 | % | ||||||||||
| Non-GAAP (2) | 44.63 | % | 57.69 | % | 56.83 | % | 70.93 | % | 75.57 | % | ||||||||||
| Profit percentage (9) | ||||||||||||||||||||
| GAAP | 9.85 | % | 30.20 | % | 11.55 | % | 31.76 | % | 37.33 | % | ||||||||||
| Non-GAAP (2) | 10.59 | % | 32.53 | % | 13.56 | % | 32.39 | % | 39.09 | % | ||||||||||
| Efficiency ratio: (7) | ||||||||||||||||||||
| GAAP | 90.15 | % | 69.80 | % | 88.45 | % | 68.24 | % | 62.67 | % | ||||||||||
| Non-GAAP (2) | 89.41 | % | 67.47 | % | 86.44 | % | 67.61 | % | 60.91 | % | ||||||||||
| Tier 1 capital to average assets (3) | 13.23 | % | 13.38 | % | 13.72 | % | 13.81 | % | 13.85 | % | ||||||||||
| Non-performing assets as a percentage of total assets (4) | 0.33 | % | 0.20 | % | 0.86 | % | 1.14 | % | 1.01 | % | ||||||||||
| Allowance for loan losses as a percentage of total loans (4) | 1.14 | % | 1.13 | % | 1.19 | % | 1.32 | % | 1.39 | % | ||||||||||
| Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4) | 1.15 | % | 1.14 | % | 1.22 | % | 1.36 | % | 1.41 | % | ||||||||||
| Allowance for loan losses as a percentage of non-performing assets | 239.67 | % | 427.66 | % | 101.89 | % | 78.99 | % | 94.58 | % | ||||||||||
| Allowance for loan losses as a percentage of non-performing loans | 239.67 | % | 427.66 | % | 101.89 | % | 77.75 | % | 92.87 | % | ||||||||||
| Tangible book value per share (8) | $ | 19.73 | $ | 19.71 | $ | 19.16 | $ | 18.80 | $ | 18.16 | ||||||||||
| Outstanding shares | 5,113,825 | 5,103,619 | 5,254,522 | 5,364,240 | 5,495,514 | |||||||||||||||
(1) Annualized for quarterly periods presented.
(2) See page 26 – Reconciliation of GAAP to Non-GAAP Net Income.
(3) Average assets calculated on a quarterly basis for all periods presented.
(4) Total loans exclude loans held for sale but includes net deferred loan costs and fees.
(5) This non-GAAP measure represents net income divided by average total assets.
(6) This non-GAAP measure represents net income divided by average stockholders' equity.
(7) This non-GAAP measure represents total non-interest expenses divided by net interest income and non-interest income.
(8) This non-GAAP measure represents total stockholders' equity, minus intangible assets of $24,000, $26,000, $28,000, $31,000, and $33,000 at December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020, respectively, divided by outstanding shares at period end.
(9) This non-GAAP measure represents net interest income plus noninterest income less non-interest expense divided by net interest income plus non-interest income.
(10) 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.
Selected Financial Highlights
(Unaudited)
| At or for the Year Ended | ||||||||
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Return on average assets: (1, 5) | ||||||||
| GAAP | 1.29 | % | 2.89 | % | ||||
| Non-GAAP (2) | 1.36 | % | 3.11 | % | ||||
| Return on average equity: (1, 6) | ||||||||
| GAAP | 9.31 | % | 22.54 | % | ||||
| Non-GAAP (2) | 9.83 | % | 24.28 | % | ||||
| Net interest margin (10) | 3.13 | % | 2.90 | % | ||||
| Non-interest income to total income: | ||||||||
| GAAP | 59.25 | % | 74.60 | % | ||||
| Non-GAAP (2) | 59.31 | % | 74.60 | % | ||||
| Profit percentage (9) | ||||||||
| GAAP | 22.69 | % | 37.65 | % | ||||
| Non-GAAP (2) | 24.07 | % | 39.80 | % | ||||
| Efficiency ratio: (7) | ||||||||
| GAAP | 77.31 | % | 62.35 | % | ||||
| Non-GAAP (2) | 75.93 | % | 59.71 | % | ||||
| Tier 1 capital to average assets (3) | 13.58 | % | 13.85 | % | ||||
| Non-performing assets as a percentage of total assets (4) | 0.33 | % | 1.01 | % | ||||
| Allowance for loan losses as a percentage of total loans (4) | 1.14 | % | 1.39 | % | ||||
| Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4) | 1.15 | % | 1.41 | % | ||||
| Allowance for loan losses as a percentage of non-performing assets | 239.67 | % | 94.58 | % | ||||
| Allowance for loan losses as a percentage of non-performing loans | 239.67 | % | 92.87 | % | ||||
| Tangible book value per share (8) | $ | 19.73 | $ | 18.16 | ||||
| Outstanding shares | 5,113,825 | 5,495,514 | ||||||
(1) Annualized for quarterly periods presented.
(2) See page 27 – Reconciliation of GAAP to Non-GAAP Net Income.
(3) Average assets calculated on an annual basis for all periods presented.
(4) Total loans exclude loans held for sale but includes net deferred loan costs and fees.
(5) This non-GAAP measure represents net income divided by average total assets.
(6) This non-GAAP measure represents net income divided by average stockholders' equity.
(7) This non-GAAP measure represents total non-interest expenses divided by net interest income and non-interest income.
(8) This non-GAAP measure represents total stockholders' equity, minus intangible assets of $24,000 and $33,000 at December 31, 2021 and December 31, 2020, respectively, divided by outstanding shares at period end.
(9) This non-GAAP measure represents net interest income plus noninterest income less non-interest expense divided by net interest income plus non-interest income.
(10) 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.
COVID-19 Supplemental Disclosure
(Unaudited)
Loan Payment Deferrals
| As of December 31, 2021 | ||||||||||||
| Commercial loans | Residential and consumer loans | Residential loans serviced for others | ||||||||||
| (Dollars in thousands) | ||||||||||||
| Balance outstanding | $ | 226,234 | $ | 323,603 | $ | 1,975,876 | ||||||
| COVID-19 related loan payment deferrals: | ||||||||||||
| Loans in COVID-19-related loan payment deferral | $ | - | $ | 1,991 | $ | 5,292 | ||||||
| Loans in deferral as a percentage of category loans | 0.0 | % | 0.6 | % | 0.3 | % | ||||||
| Loans with suspended payment | $ | - | $ | 1,991 | $ | 2,026 | ||||||
| Loans with reduced payment | - | - | 3,266 | |||||||||
| Loans which obtained a COVID-19-related payment deferral but have since resumed payment | $ | 37,539 | $ | 17,115 | $ | 63,084 | ||||||
| Loans reinstated (borrower paid any unpaid principal and interest) | 23,267 | 1,426 | 4,499 | |||||||||
| Loans on a repayment plan | - | - | 1,313 | |||||||||
| Loans which resumed payment but deferred principal and/or interest payments to maturity | 4,549 | 8,494 | 31,025 | |||||||||
| Loans which were paid off completely | 9,723 | 7,195 | 26,247 | |||||||||
Randolph Bancorp, Inc.
COVID-19 Supplemental Disclosure
(Unaudited)
COVID-19 Highly Impacted Sectors
| As of December 31, 2021 | ||||||||||||||||||||||||||||||||
| Exposure Balance | Exposure by Risk Weighting | |||||||||||||||||||||||||||||||
| Balance | ||||||||||||||||||||||||||||||||
| Real | Commercial | with | ||||||||||||||||||||||||||||||
| Estate | & | Deferred | ||||||||||||||||||||||||||||||
| Industry (1) | Total | Secured | Industrial | Construction | Pass | Criticized | Payments | |||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||
| Group home/care facility | $ | 1,042 | $ | 1,042 | $ | - | $ | - | $ | 1,042 | $ | - | $ | - | ||||||||||||||||||
| Hotels/hospitality | 9,506 | 9,453 | 53 | - | 53 | 9,453 | - | |||||||||||||||||||||||||
| Restaurants/food service | 2,488 | 1,468 | 1,020 | - | 2,489 | - | - | |||||||||||||||||||||||||
| Retail/shopping center | 15,642 | 11,980 | - | 3,662 | 14,635 | 1,006 | - | |||||||||||||||||||||||||
| Other sectors (2) | 8,851 | 8,592 | 59 | 200 | 8,852 | - | - | |||||||||||||||||||||||||
| Total loans in COVID-19 impacted sectors | $ | 37,529 | $ | 32,535 | $ | 1,132 | $ | 3,862 | $ | 27,071 | $ | 10,459 | $ | - | ||||||||||||||||||
| Percentage of commercial loans outstanding | 16.6 | % | 16.5 | % | 6.6 | % | 33.4 | % | ||||||||||||||||||||||||
| Commercial loans outstanding | $ | 226,234 | $ | 197,423 | $ | 17,242 | $ | 11,569 | ||||||||||||||||||||||||
| Loan to value secured by real estate (3) | 59.4 | % | 62.0 | % | ||||||||||||||||||||||||||||
(1) This disclosure focuses on industries with balances that are significant to the portfolio at December 31, 2021 and omits industries affected by the COVID-19 pandemic (oil and gas, transportation, etc.) to which the Company has minimal or no exposure. This disclosure also excludes SBA PPP Loans, given their government guarantee.
(2) Includes customers operating in various sectors which have been impacted by COVID-19.
(3) Loan to value secured by real estate equals the exposure balance divided by the most recent appraised value.
