QUINCY, Mass., July 27, 2022 (GLOBE NEWSWIRE) -- Randolph Bancorp, Inc. (the "Company") (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the "Bank"), today announced net income of $248,000, or $0.05 per basic and diluted share, for the three months ended June 30, 2022 compared to a net loss of $235,000, or $0.05 per basic and diluted share, for the three months ended March 31, 2022 and net income of $1.6 million, or $0.32 per basic share and $0.31 per diluted share, for the three months ended June 30, 2021. Excluding $357,000 in merger expenses, net income on a non-GAAP basis was $605,000, or $0.12 per diluted share, for the three months ended June 30, 2022. Excluding $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 $145,000 in severance expenses, $71,000 in other outsourcing expenses, and $29,000 in losses on disposals of fixed assets, net income on a non-GAAP basis was $1.8 million, or $0.34 per diluted share, for the three months ended June 30, 2021. Please see the tables attached hereto for a reconciliation of these and other non-GAAP financial measures.

For the six months ended June 30, 2022, net income was $13,000 or $0.00 per basic and diluted share, compared to net income of $5.7 million, or $1.14 per basic share and $1.10 per diluted share, for the six months ended June 30, 2021. Net income on a non-GAAP basis, excluding certain nonrecurring items, was $923,000, or $0.18 per diluted share, for the six months ended June 30, 2022, compared to net income on a non-GAAP basis, excluding other certain nonrecurring items, of $5.9 million, or $1.15 per diluted share, for the six months ended June 30, 2021. Please see the tables attached hereto for a reconciliation of these and other non-GAAP financial measures.

At June 30, 2022, total assets amounted to $774.8 million, compared to $770.3 million at March 31, 2022, an increase of $4.5 million, or 0.6%. Total loans increased by $78.1 million, or 13.3%, to $662.9 million at June 30, 2022 from $584.8 million at March 31, 2022, and loans held for sale decreased by $13.0 million to $9.7 million at June 30, 2022 from $22.7 million at March 31, 2022. Cash and cash equivalents decreased to $14.9 million at June 30, 2022, a decrease of $56.2 million, or 79.0% from $71.1 million as of March 31, 2022, as a result of loan growth and a decrease in Federal Home Loan Bank of Boston ("FHLB") borrowings of $12.1 million, partially offset by a decrease in loans held for sale. Compared to June 30, 2021, total assets grew $30.6 million, or 4.1%, from $744.1 million. The growth from the prior year period was driven by an increase in total loans of $116.5 million, or 21.3%, partially offset by a decrease in loans held for sale of $64.5 million, or 86.9% and a decrease in cash and cash equivalents of $20.0 million, or 57.3%.

William M. Parent, President and Chief Executive Officer, stated, "During the quarter, we were pleased to obtain shareholder approval for the proposed merger with Hometown Financial Group, Inc. ("Hometown"). We are excited to be joining Hometown and becoming part of a larger organization. I want to thank our employees for their dedication and hard work during this time of transition as we maintain a business-as-usual environment for our customers."

Second Quarter Operating Results

Net interest income increased by $744,000, or 14.1%, to $6.0 million for the three months ended June 30, 2022 from $5.3 million for the three months ended March 31, 2022. This increase was primarily due to a 16.6% increase in average balances of 1-4 family residential loans and a 14 basis point improvement in the average yield earned on these loans. The yield earned on interest-earning assets increased by 53 basis points from the prior quarter, and the rate paid on interest-bearing liabilities decreased by 1 basis point from the prior quarter. The net interest margin increased by 53 basis points to 3.39% for the second quarter from 2.86% for the first quarter.

Net interest income increased by $812,000, or 15.6%, to $6.0 million for the three months ended June 30, 2022, from $5.2 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin increased by 38 basis points to 3.39% from 3.01%. The improvement reflects average loan growth of $41.3 million from the prior year quarter and an increase of 18 basis points in the average yield earned on loans, while the cost of interest-bearing liabilities decreased by 10 basis points.

The Company recognized a provision for loan losses of $269,000 for the quarter ended June 30, 2022, driven by loan growth of $78.1 million from the prior quarter. The allowance for loan losses as a percentage of total loans was 1.00%, 1.09% and 1.19% at June 30, 2022, March 31, 2022 and June 30, 2021, respectively, and was 237.4%, 237.2% and 101.9% of non-performing assets at June 30, 2022, March 31, 2022 and June 30, 2021, respectively.

Non-interest income decreased $367,000, or 16.7%, to $1.8 million for the quarter ended June 30, 2022 from $2.2 million in the quarter ended March 31, 2022, due to a decrease of $780,000 in the net gain on loan origination and sale activities. Sold mortgages totaled $56.8 million in the second quarter of 2022, compared to $129.9 million in the first quarter of 2022. The second quarter of 2022 ended with a mortgage pipeline of $10.9 million, compared to a pipeline of $42.7 million at the end of the first quarter of 2022, and loans held for sale were $9.7 million as of June 30, 2022, compared to $22.7 million as of March 31, 2022. The decrease in the mortgage banking pipeline and loans held for sale, reflecting rising interest rates and lower margins on loans sold, contributed to the erosion in the gain on loan origination and sale activities from the prior quarter. Mortgage servicing fees increased $161,000, or 46.3%, to $509,000 for the second quarter of 2022 from $348,000 in the first quarter of 2022 because of a positive fair value adjustment of $286,000 in the second quarter of 2022, compared to a positive fair value adjustment of $135,000 for the first quarter of 2022, given declining prepayment speeds.

Non-interest income decreased $5.0 million, or 73.2%, to $1.8 million for the quarter ended June 30, 2022, from $6.8 million for the quarter ended June 30, 2021, principally due to a decrease of $5.3 million in the net gain on loan origination and sale activities. Sold mortgage loans totaled $56.8 million in the second quarter of 2022, compared to sold mortgage loans of $342.8 million during the second quarter of 2021. The second quarter of 2022 ended with a mortgage pipeline of $10.9 million, compared to a pipeline of $139.7 million at the end of the second quarter of 2021. Mortgage servicing fees increased $128,000 in the quarter ended June 30, 2022, principally due to a positive valuation adjustment to mortgage servicing rights of $286,000 in the quarter ended June 30, 2022.

Non-interest expenses decreased $1.2 million, or 14.0%, to $7.5 million in the quarter ended June 30, 2022 from $8.7 million in the quarter ended March 31, 2022. The decrease was due to a decrease in salaries and employee benefits expense of $740,000, or 14.4%, primarily attributed to lower headcount and the absence of severance expenses related to the reduction in force in the mortgage banking operation completed in the quarter ended March 31, 2022. In addition, professional fees and other non-interest expenses decreased by $707,000 from the prior quarter.

Non-interest expenses decreased $3.1 million to $7.5 million in the quarter ended June 30, 2022 from $10.6 million in the quarter ended June 30, 2021. The decrease was principally due to a decrease in salaries and employee benefits of $2.9 million, primarily attributed to lower commissions and incentives associated with lower residential loan production and reduced headcount.

The income tax benefit was $165,000 for the three months ended June 30, 2022, compared to $1.1 million for the three months ended March 31, 2022 and $162,000 for the three months ended June 30, 2021.

Year-to-Date Operating Results

Net interest income increased by $1.0 million, or 9.6%, to $11.3 million for the six months ended June 30, 2022 from $10.3 million for the six months ended June 30, 2021. The change reflects loan growth and higher average yields earned on loans, as well as the downward pricing and improved composition of funding liabilities. An increase in the average balance of loans of $16.9 million, or 2.8%, and an 11 basis point improvement in loan yields contributed to a $678,000 improvement in total interest and dividend income. The composition of our funding base improved with an increase of $21.3 million, or 18.4%, in the average balance of non-interest bearing deposits and a decrease of $21.5 million, or 35.1%, in the average balance of borrowings. The composition change contributed to a 15 basis point decrease in the cost of interest-bearing liabilities.

The Company recognized a provision for loan losses of $340,000 for the six months ended June 30, 2022 compared to a credit for loan losses of $240,000 in the prior year period. For the six months ended June 30, 2022, loan growth was the primary contributor to the provision for loan losses.

Non-interest income decreased $15.2 million, or 79.1%, to $4.0 million for the six months ended June 30, 2022 from $19.2 million in the prior year period, principally due to a decrease of $15.0 million in the net gain on loan origination and sale activities, and a decrease in mortgage servicing fees, net, of $303,000. Mortgage loans sold were $186.6 million during the six months ended June 30, 2022, compared to $846.0 million during the prior year period. Net gain on loan origination and sale activities decreased as a result of both lower volume and margin on loan sales and the impact of a shrinking mortgage banking pipeline during the first six months of 2022. Mortgage servicing fees decreased $303,000 for the six months ended June 30, 2022 to $857,000 from $1.2 million for the six months ended June 30, 2021, primarily due to the recording of sub-servicer expenses during the six months ended June 30, 2022 of $620,000.

Non-interest expenses decreased $6.4 million, or 28.3%, to $16.2 million for the six months ended June 30, 2022 from $22.6 million for the six months ended June 30, 2021. Salaries and benefits decreased $6.2 million, or 39.2%, to $9.6 million, as a result of lower commissions and incentives associated with a normalization of residential loan production and reduced headcount. Included in salaries and benefits were severance expenses of $240,000 and $254,000 in the six months ended June 30, 2022 and 2021, respectively, relating to a reduction in force in the mortgage banking operation in 2022 and the outsourcing of residential loan servicing in 2021. Occupancy and equipment expenses decreased $441,000 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 since the prior year, and decreased COVID-19 pandemic related spending.

The income tax benefit was $1.2 million for the six months ended June 30, 2022 compared to income tax expense of $1.5 million for the six months ended June 30, 2021. Non-qualified stock option exercises during the six months ended June 30, 2022 contributed to the income tax benefit, in addition to the pre-tax loss generated during the period.

Balance Sheet

At June 30, 2022, total assets amounted to $774.8 million, compared to $770.3 million at March 31, 2022, an increase of $4.5 million, or 0.6%. A $78.1 million increase in total loans from the prior quarter was partially offset by a $13.0 million decrease in loans held for sale and a $56.2 million decrease in total cash and cash equivalents. Deposits increased by $16.7 million, or 2.7%, in the quarter, whereas FHLB advances decreased by $12.1 million, or 26.8%.

Total assets at June 30, 2022 increased $30.6 million, or 4.1%, from $744.1 million at June 30, 2021. Contributing to asset growth was an increase of $117.0 million in net loans to $657.6 million at June 30, 2022 from $540.7 million at June 30, 2021. Commercial real estate loans increased by $21.6 million, or 12.9%, as we focused on diversifying our loan mix. Cash and cash equivalents decreased by $20.0 million, or 57.3%, to $14.9 million at June 30, 2022 from $34.9 million at June 30, 2021, principally due to loan growth. FHLB advances decreased by $17.1 million to $32.9 million at June 30, 2022, from $50.0 million at June 30, 2021.

Total stockholders' equity was $89.3 million at June 30, 2022 compared to $88.5 million at March 31, 2022. The increase of $800,000 reflects net income of $248,000 and earned ESOP compensation and the commitment of ESOP shares to be released of $946,000, and net proceeds from the exercise of stock options of $272,000, partially offset by other comprehensive losses, of $915,000.

Total stockholders' equity was $89.3 million at June 30, 2022 compared to $100.7 million at June 30, 2021. The decrease of $11.4 million relates mainly to share repurchases of $4.9 million and dividend payments of $12.0 million, partially offset by net income from the previous twelve months of $3.9 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 (the "merger agreement") pursuant to which, through a series of transactions, Hometown will acquire the Company (the "merger") in a cash transaction for total consideration valued at approximately $146.5 million. Under the terms of the merger agreement, Company shareholders will receive $27.00 for each share of Company common stock. The shareholders of the Company approved the proposed merger at a special meeting of shareholders held on June 29, 2022. The merger is expected to close in the fourth quarter of 2022 and is subject to regulatory approvals and customary closing conditions.

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 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 risk that the merger agreement may be terminated in certain circumstances; the outcome of any legal proceedings that may be instituted against the Company and/or others related to the merger agreement or the merger; disruptions to the Company's business as a result of the announcement and pendency of 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 interest rates; competition; inflation; 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 pandemic-related legislative and regulatory initiatives and programs; ongoing 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
	June 30,			March 31,			June 30,			Jun 2022 vs.			Jun 2022 vs.
		2022			2022			2021		Mar 2022			Jun 2021
Assets
Cash and cash equivalents	$	14,891		$	71,072		$	34,876			(79.0	)%		(57.3	)%
Securities available for sale, at fair value		47,142			48,836			50,212			(3.5	)%		(6.1	)%
Loans held for sale, at fair value		9,736			22,698			74,277			(57.1	)%		(86.9	)%
Loans:
1-4 family residential		354,922			271,755			263,992			30.6	%		34.4	%
Home equity		65,210			58,501			50,555			11.5	%		29.0	%
Commercial real estate		189,334			199,255			167,691			(5.0	)%		12.9	%
Construction		33,877			32,544			29,140			4.1	%		16.3	%
Total real estate loans		643,343			562,055			511,378			14.5	%		25.8	%
Commercial and industrial		13,162			15,478			25,826			(15.0	)%		(49.0	)%
Consumer		6,353			7,267			9,194			(12.6	)%		(30.9	)%
Total loans		662,858			584,800			546,398			13.3	%		21.3	%
Allowance for loan losses		(6,602	)		(6,357	)		(6,523	)		3.9	%		1.2	%
Net deferred loan costs and fees, and purchase premiums		1,362			1,148			785			18.6	%		73.5	%
Loans, net		657,618			579,591			540,660			13.5	%		21.6	%
Federal Home Loan Bank of Boston stock, at cost		1,778			2,734			2,855			(35.0	)%		(37.7	)%
Accrued interest receivable		1,699			1,434			1,523			18.5	%		11.6	%
Mortgage servicing rights, net		15,093			15,378			15,375			(1.9	)%		(1.8	)%
Premises and equipment, net		7,669			7,718			5,115			(0.6	)%		49.9	%
Bank-owned life insurance		8,865			8,824			8,703			0.5	%		1.9	%
Other assets		10,262			11,999			10,546			(14.5	)%		(2.7	)%
Total assets	$	774,753		$	770,284		$	744,142			0.6	%		4.1	%

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	146,635		$	142,793		$	124,683			2.7	%		17.6	%
Savings accounts		195,107			196,145			190,584			(0.5	)%		2.4	%
NOW accounts		51,928			53,329			51,059			(2.6	)%		1.7	%
Money market accounts		98,331			92,769			73,967			6.0	%		32.9	%
Term certificates		102,002			106,515			74,631			(4.2	)%		36.7	%
Interest bearing brokered		47,361			33,128			57,059			43.0	%		(17.0	)%
Total deposits		641,364			624,679			571,983			2.7	%		12.1	%
Federal Home Loan Bank of Boston advances		32,946			45,000			50,016			(26.8	)%		(34.1	)%
Mortgagors' escrow accounts		2,546			2,773			1,783			(8.2	)%		42.8	%
Post-employment benefit obligations		2,055			2,064			2,226			(0.4	)%		(7.7	)%
Other liabilities		6,564			7,290			17,424			(10.0	)%		(62.3	)%
Total liabilities		685,475			681,806			643,432			0.5	%		6.5	%
Stockholders' Equity:
Common stock		52			52			52			0.0	%		0.0	%
Additional paid-in capital		45,501			44,904			46,740			1.3	%		(2.7	)%
Retained earnings		49,290			49,042			57,378			0.5	%		(14.1	)%
ESOP-Unearned compensation		(2,651	)		(3,521	)		(3,662	)		(24.7	)%		(27.6	)%
Accumulated other comprehensive income (loss), net of tax		(2,914	)		(1,999	)		202			45.8	%		(1542.6	)%
Total stockholders' equity		89,278			88,478			100,710			0.9	%		(11.4	)%
Total liabilities and stockholders' equity	$	774,753		$	770,284		$	744,142			0.6	%		4.1	%

Randolph Bancorp, Inc.

Consolidated Balance Sheet Trend

(Dollars in thousands)

(Unaudited)

	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021
Assets
Cash and cash equivalents	$	14,891		$	71,072		$	115,449		$	12,876		$	34,876
Securities available for sale, at fair value		47,142			48,836			51,666			51,725			50,212
Loans held for sale, at fair value		9,736			22,698			44,766			75,400			74,277
Loans:
1-4 family residential		354,922			271,755			236,364			265,561			263,992
Home equity		65,210			58,501			57,295			56,124			50,555
Commercial real estate		189,334			199,255			197,423			185,100			167,691
Construction		33,877			32,544			33,961			34,479			29,140
Total real estate loans		643,343			562,055			525,043			541,264			511,378
Commercial and industrial		13,162			15,478			17,242			19,896			25,826
Consumer		6,353			7,267			7,552			8,860			9,194
Total loans		662,858			584,800			549,837			570,020			546,398
Allowance for loan losses		(6,602	)		(6,357	)		(6,289	)		(6,432	)		(6,523	)
Net deferred loan costs and fees, and purchase premiums		1,362			1,148			1,073			1,031			785
Loans, net		657,618			579,591			544,621			564,619			540,660
Federal Home Loan Bank of Boston stock, at cost		1,778			2,734			2,940			3,239			2,855
Accrued interest receivable		1,699			1,434			1,500			1,763			1,523
Mortgage servicing rights, net		15,093			15,378			15,616			15,402			15,375
Premises and equipment, net		7,669			7,718			7,684			6,462			5,115
Bank-owned life insurance		8,865			8,824			8,784			8,744			8,703
Other assets		10,262			11,999			10,252			10,867			10,546
Total assets	$	774,753		$	770,284		$	803,278		$	751,097		$	744,142

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	146,635		$	142,793		$	145,666		$	134,058		$	124,683
Savings accounts		195,107			196,145			191,712			188,346			190,584
NOW accounts		51,928			53,329			53,996			53,804			51,059
Money market accounts		98,331			92,769			90,544			73,562			73,967
Term certificates		102,002			106,515			106,112			73,519			74,631
Interest bearing brokered		47,361			33,128			50,117			50,116			57,059
Total deposits		641,364			624,679			638,147			573,405			571,983
Federal Home Loan Bank of Boston advances		32,946			45,000			50,000			62,900			50,016
Mortgagors' escrow accounts		2,546			2,773			2,128			1,905			1,783
Post-employment benefit obligations		2,055			2,064			2,222			2,182			2,226
Other liabilities		6,564			7,290			9,878			10,108			17,424
Total liabilities		685,475			681,806			702,375			650,500			643,432
Stockholders' Equity:
Common stock		52			52			50			50			52
Additional paid-in capital		45,501			44,904			44,078			43,574			46,740
Retained earnings		49,290			49,042			60,524			60,504			57,378
ESOP-Unearned compensation		(2,651	)		(3,521	)		(3,568	)		(3,615	)		(3,662	)
Accumulated other comprehensive income (loss), net of tax		(2,914	)		(1,999	)		(181	)		84			202
Total stockholders' equity		89,278			88,478			100,903			100,597			100,710
Total liabilities and stockholders' equity	$	774,753		$	770,284		$	803,278		$	751,097		$	744,142

Randolph Bancorp, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share amounts)

(Unaudited)

	Three Months Ended									% Change
	June 30,			March 31,			June 30,			Jun 2022 vs.			Jun 2022 vs.
	2022			2022			2021			Mar 2022			Jun 2021
Interest and dividend income:
Loans	$	6,182		$	5,467		$	5,505			13.1	%		12.3	%
Securities-taxable		221			216			223			2.3	%		(0.9	)%
Securities-tax exempt		4			4			6			0.0	%		(33.3	)%
Interest-bearing deposits and certificates of deposit		45			42			8			7.1	%		462.5	%
Total interest and dividend income		6,452			5,729			5,742			12.6	%		12.4	%

Interest expense:
Deposits		342			315			345			8.6	%		(0.9	)%
Borrowings		99			147			198			(32.7	)%		(50.0	)%
Total interest expense		441			462			543			(4.5	)%		(18.8	)%

Net interest income		6,011			5,267			5,199			14.1	%		15.6	%
Provision (credit) for loan losses		269			71			(27	)		278.9	%		(1096.3	)%
Net interest income after provision (credit) for loan losses		5,742			5,196			5,226			10.5	%		9.9	%

Non-interest income:
Customer service fees		372			365			419			1.9	%		(11.2	)%
Gain on loan origination and sale activities, net		484			1,264			5,740			(61.7	)%		(91.6	)%
Mortgage servicing fees, net		509			348			381			46.3	%		33.6	%
Increase in cash surrender value of life insurance		41			40			41			2.5	%		0.0	%
Other		419			175			235			139.4	%		78.3	%
Total non-interest income		1,825			2,192			6,816			(16.7	)%		(73.2	)%
Non-interest expenses:
Salaries and employee benefits		4,414			5,154			7,310			(14.4	)%		(39.6	)%
Occupancy and equipment		559			365			621			53.2	%		(10.0	)%
Data processing		378			345			301			9.6	%		25.6	%
Professional fees		578			1,025			323			(43.6	)%		78.9	%
Marketing		151			157			200			(3.8	)%		(24.5	)%
FDIC insurance		62			58			54			6.9	%		14.8	%
Other non-interest expenses		1,342			1,602			1,818			(16.2	)%		(26.2	)%
Total non-interest expenses		7,484			8,706			10,627			(14.0	)%		(29.6	)%
Income (loss) before income taxes		83			(1,318	)		1,415			(106.3	)%		(94.1	)%
Income tax expense (benefit)		(165	)		(1,083	)		(162	)		(84.8	)%		1.9	%
Net income (loss)	$	248		$	(235	)	$	1,577			(205.5	)%		(84.3	)%

Net income (loss) per share:
Basic	$	0.05		$	(0.05	)	$	0.32
Diluted	$	0.05		$	(0.05	)	$	0.31

Weighted average shares outstanding:
Basic		4,839,796			4,815,325			4,921,182
Diluted		5,076,181			5,014,538			5,135,582

Dividends declared per share	$	-		$	2.15		$	-

Randolph Bancorp, Inc.

Consolidated Statements of Operations

(Dollars in thousands except per share amounts)

(Unaudited)

	Year to Date						% Change
	June 30,			June 30,			Jun 2022 vs.
	2022			2021			Jun 2021
Interest and dividend income:
Loans	$	11,649		$	11,013			5.8	%
Securities-taxable		437			463			(5.6	)%
Securities-tax exempt		8			12			(33.3	)%
Interest-bearing deposits and certificates of deposit		87			15			480.0	%
Total interest and dividend income		12,181			11,503			5.9	%

Interest expense:
Deposits		657			783			(16.1	)%
Borrowings		246			430			(42.8	)%
Total interest expense		903			1,213			(25.6	)%

Net interest income		11,278			10,290			9.6	%
Provision (credit) for loan losses		340			(240	)		(241.7	)%
Net interest income after provision (credit) for loan losses		10,938			10,530			3.9	%

Non-interest income:
Customer service fees		737			786			(6.2	)%
Gain on loan origination and sale activities, net		1,748			16,733			(89.6	)%
Mortgage servicing fees, net		857			1,160			(26.1	)%
Increase in cash surrender value of life insurance		81			81			0.0	%
Other		594			479			24.0	%
Total non-interest income		4,017			19,239			(79.1	)%
Non-interest expenses:
Salaries and employee benefits		9,568			15,747			(39.2	)%
Occupancy and equipment		924			1,365			(32.3	)%
Data processing		723			564			28.2	%
Professional fees		1,603			884			81.3	%
Marketing		308			370			(16.8	)%
FDIC insurance		120			108			11.1	%
Other non-interest expenses		2,944			3,540			(16.8	)%
Total non-interest expenses		16,190			22,578			(28.3	)%
Income (loss) before income taxes		(1,235	)		7,191			(117.2	)%
Income tax expense (benefit)		(1,248	)		1,502			(183.1	)%
Net income	$	13		$	5,689			(99.8	)%

Net income per share:
Basic	$	0.00		$	1.14
Diluted	$	0.00		$	1.10

Weighted average shares outstanding:
Basic		4,827,628			4,988,283
Diluted		5,046,444			5,193,643

Dividends declared per share	$	2.15		$	-

Randolph Bancorp, Inc.

Consolidated Statements of Operations Trend

(Dollars in thousands except per share amounts)

(Unaudited)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021
Interest and dividend income:
Loans	$	6,182		$	5,467		$	5,923		$	6,226		$	5,505
Securities-taxable		221			216			217			219			223
Securities-tax exempt		4			4			4			4			6
Interest-bearing deposits and certificates of deposit		45			42			13			4			8
Total interest and dividend income		6,452			5,729			6,157			6,453			5,742

Interest expense:
Deposits		342			315			308			299			345
Borrowings		99			147			155			178			198
Total interest expense		441			462			463			477			543

Net interest income		6,011			5,267			5,694			5,976			5,199
Provision (credit) for loan losses		269			71			(108	)		(90	)		(27	)
Net interest income after provision (credit) for loan losses		5,742			5,196			5,802			6,066			5,226

Non-interest income:
Customer service fees		372			365			422			410			419
Gain on loan origination and sale activities, net		484			1,264			3,723			7,229			5,740
Mortgage servicing fees, net		509			348			257			274			381
Increase in cash surrender value of life insurance		41			40			41			41			41
Other		419			175			92			195			235
Total non-interest income		1,825			2,192			4,535			8,149			6,816
Non-interest expenses:
Salaries and employee benefits		4,414			5,154			6,084			6,381			7,310
Occupancy and equipment		559			365			713			714			621
Data processing		378			345			237			367			301
Professional fees		578			1,025			325			490			323
Marketing		151			157			245			134			200
FDIC insurance		62			58			55			54			54
Other non-interest expenses		1,342			1,602			1,562			1,719			1,818
Total non-interest expenses		7,484			8,706			9,221			9,859			10,627
Income (loss) before income taxes		83			(1,318	)		1,116			4,356			1,415
Income tax expense (benefit)		(165	)		(1,083	)		330			1,230			(162	)
Net income (loss)	$	248		$	(235	)	$	786		$	3,126		$	1,577

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

Weighted average shares outstanding:
Basic		4,839,796			4,815,325			4,743,833			4,869,155			4,921,182
Diluted		5,076,181			5,014,538			4,993,750			5,074,676			5,135,582

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

Randolph Bancorp, Inc.

Average Balances/Yields

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 30, 2022							March 31, 2022							June 30, 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⁾	$	320,545	$	2,941		3.68	%	$	274,883	$	2,400		3.54	%	$	319,087	$	2,763		3.47	%
Home equity		62,406		574		3.69	%		57,046		470		3.34	%		49,789		412		3.32	%
Commercial real estate		197,928		2,025		4.10	%		197,330		1,921		3.95	%		159,423		1,666		4.19	%
Construction		32,095		314		3.92	%		32,734		296		3.67	%		29,902		289		3.88	%
Total real estate loans		612,974		5,854		3.83	%		561,993		5,087		3.67	%		558,201		5,130		3.69	%
Commercial and industrial		14,123		234		6.65	%		16,631		277		6.75	%		25,497		266		4.18	%
Consumer		6,924		94		5.45	%		7,617		103		5.48	%		9,052		109		4.83	%
Total loans		634,021		6,182		3.91	%		586,241		5,467		3.78	%		592,750		5,505		3.73	%
Investment securities^{(2) (3)}		49,426		226		1.83	%		52,930		221		1.69	%		55,376		230		1.67	%
Interest-earning deposits		27,803		45		0.65	%		107,866		42		0.16	%		43,888		8

Randolph Bancorp, Inc. Announces Second Quarter 2022 Financial Results