Social media sharing Email page PDF view Print view
Press Release

Randolph Bancorp, Inc. Announces Third Quarter and Year-To-Date 2019 Financial Results

Company Release - 10/22/2019 5:00 PM ET

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

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

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

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

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

Third Quarter Operating Results
Net interest income increased by $313,000, or 7.3%, to $4.6 million for the three months ended September 30, 2019 compared to the same period in the prior year. This increase was due to an increase in average interest-earning assets between periods of $86.9 million, or 15.9%, as the Company continued to leverage the capital raised in its 2016 initial public offering. The net interest margin decreased in the third quarter of 2019 to 2.89% from 3.13% in the third quarter of 2018 due primarily to greater utilization of wholesale funding to support loan growth, the rising cost of both deposits and borrowings due to a series of increases in the federal funds rate throughout 2018, and a continuing flattening of the yield curve.

The Company made no provision for loan losses for the three months ended September 30, 2019 while a provision of $178,000 was recorded for the three months ended September 30, 2018. No provision was required in the 2019 quarter due to modest loan growth and a small shift in the loan portfolio mix towards residential mortgage loans which generally carry lower credit risk than commercial and consumer loans. The provision in the 2018 quarter was directly attributable to growth in the residential loan portfolio. The allowance for loan losses was 0.90% and 0.91% of total loans at September 30, 2019 and December 31, 2018, respectively, and was 120.2% and 121.2% of non-performing loans at September 30, 2019 and December 31, 2018, respectively.

Non-interest income increased $3.1 million to $6.3 million for the three months ended September 30, 2019 from $3.2 million for the three months ended September 30, 2018 due to an increase of $3.8 million, or 195.6%, in the gain on loan origination and sale activities. This increase was volume related due to the addition of nearly 20 loan originators over the past twelve months and the favorable interest rate environment. Beginning in the first quarter of 2019, interest rates on mortgage loans began to decline which lead to the first significant increase in loan refinancing activity experienced in nearly three years. Together these factors resulted in a 173.8% increase in loans sold during the third quarter of 2019 as compared to the prior year period. The increase in the gain on loan origination and sale activities was partially offset by a decrease in net loan servicing fees due to a fair value adjustment for mortgage servicing rights of $522,000 as loan prepayment speeds were adjusted higher to reflect lower interest rates. In addition, a gain of $230,000 on the sale of a former branch office was recognized in the third quarter of 2018.

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

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

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

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

Year-to-Date Operating Results
Net interest income increased by $1.2 million, or 9.5%, for the nine months ended September 30, 2019 compared to the same period in the prior year. This increase was due to an increase in average interest-earning assets between periods of $88.2 million, or 16.9%, as the Company continued to leverage the capital raised in its 2016 initial public offering.  The net interest margin decreased in the first nine months of 2019 to 2.94% from 3.15% in the first nine months of 2018 due primarily to greater utilization of wholesale funding to support loan growth, the rising cost of both deposits and borrowings due to a series of increases in the federal funds rate throughout 2018 and a continuing flattening of the yield curve.

The Company recognized a credit of $144,000 to the allowance for loan losses for the nine months ended September 30, 2019 compared to a provision of $183,000 for the nine months ended September 30, 2018. The credit to the allowance in the 2019 period was primarily due to decreases in the loan portfolio attributable to the sale of residential mortgages loans which had been transferred from portfolio to loans held for sale and the repayment of a large commercial and industrial loan. The provision in the 2018 period was primarily due to $68.7 million of growth in the loan portfolio, partially offset by a reduction of $265,000 in the general component of the allowance for loan losses related primarily to commercial real estate loans and home equity loans.

Non-interest income increased $7.2 million to $15.6 million for the nine months ended September 30, 2019 from $8.4 million for the nine months ended September 30, 2018 due primarily to an increase of $8.1 million, or 150.9%, in the gain on loan origination and sale activities. This increase was volume related due to the addition of nearly 20 loan originators over the past twelve months and the favorable interest rate environment. Beginning in the first quarter of 2019, interest rates on mortgage loans began to decline which lead to the first significant increase in loan refinancing activity experienced in nearly three years. Together these factors resulted in a 104.5% increase in loans sold during the first nine months of 2019 as compared to the prior year period, and a fifteenfold increase in the year-to-date growth of the pipeline of interest rate lock agreements with customers between periods. The increase in the gain on loan origination and sale activities was partially offset by a decrease in net loan servicing fees due to a fair value adjustment for mortgage servicing rights of $636,000 as loan prepayment speeds were adjusted higher to reflect lower interest rates. In addition, a gain of $230,000 on the sale of a former branch office was recognized in the 2018 period.

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

Due to the sale of the Boston branch and the partial closure of the Andover operations center in the fourth quarter of 2018, occupancy and equipment costs declined by $185,000 for the nine months ended September 30, 2019 compared to the same period in the prior year. In addition, spending on marketing was reduced by $223,000 between periods. The savings in marketing expenses was caused by advertising in the prior year associated with the re-branding to Envision Bank. The increase of $190,000 in other non-interest expenses was driven by the increase in Envision Mortgage’s loan production and the donation of unused land, which were partially offset by lower spending on software licenses and data communication costs.

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

Balance Sheet
Total assets were $641.4 million at September 30, 2019 compared to $614.3 million at December 31, 2018, an increase of $27.1 million, or 4.4%. This growth resulted from an increase of $55.9 million in loans held for sale, partially offset by a decrease of $26.6 million in portfolio loans. The increase in loans held for sale was a direct result of the 76.2% increase in residential loan production achieved in 2019. The decrease in portfolio loans occurred largely as a result of the third quarter sale of $28.6 million in residential mortgage loans which had been transferred from portfolio to loans held for sale earlier in the year. The increase in total assets was funded by deposit growth, including increases of $35.7 million and $18.0 million in brokered deposits and non-brokered deposits, respectively.

Net loans totaled $457.2 million at September 30, 2019, a decrease of $26.6 million, or 5.5%, from December 31, 2018.  This decrease occurred across all categories of real estate secured loans and was primarily the result of the aforementioned transfer of residential mortgage loans to loans held for sale. Commercial and industrial loans decreased by $7.3 million during the first nine months of 2019 due in large part to a $4.7 million payoff of a loan participation with a super-regional bank. No new loan participations have been purchased in 2019. Consumer loans, which consist primarily of purchased loans, decreased by a total of $2.8 million during the first nine months of 2019 as loan repayments exceeded loan purchases during the period. No purchases of student loans and unsecured consumer loans have been made in 2019.

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

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

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

Randolph Bancorp, Inc. is the sole member of Envision Bank Foundation, Inc. (the “Foundation”), a nonprofit corporation organized in 2016 to financially support community projects that improve the quality of life in markets served by Envision Bank. Since inception, the Foundation has funded projects focused on support of military veterans and their families, and education.

Forward Looking Statements
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

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


Randolph Bancorp, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)

  September 30,  December 31, 
  2019  2018 
         
Assets 
Cash and due from banks $6,525  $3,451 
Interest-bearing deposits  2,701   3,667 
Total cash and cash equivalents  9,226   7,118 
         
Certificates of deposit  490   2,205 
Securities available for sale, at fair value  47,187   50,556 
Loans held for sale, at fair value  94,372   38,474 
Loans, net of allowance for loan losses of $4,153 in 2019 and $4,437 in 2018  457,218   483,846 
Federal Home Loan Bank of Boston stock, at cost  2,985   4,700 
Accrued interest receivable  1,410   1,504 
Mortgage servicing rights, net  8,459   7,786 
Premises and equipment, net  5,911   6,368 
Bank-owned life insurance  8,395   8,256 
Foreclosed real estate, net  -   65 
Other assets  5,785   3,462 
         
Total assets $641,438  $614,340 
         
Liabilities and Stockholders' Equity 
Deposits:        
Non-interest bearing $65,250  $64,229 
Interest bearing  329,319   312,321 
Brokered  96,261   60,580 
Total deposits  490,830   437,130 
         
Federal Home Loan Bank of Boston advances  57,668   89,036 
Mortgagors' escrow accounts  2,199   2,129 
Post-employment benefit obligations  2,385   2,551 
Other liabilities  8,765   5,533 
Total liabilities  561,847   536,379 
         
Stockholders' Equity:        
Common stock  57   60 
Additional paid-in capital  52,884   55,608 
Retained earnings  30,928   28,329 
ESOP-Unearned compensation  (3,991)  (4,132)
Accumulated other comprehensive loss, net of tax  (287)  (1,904)
Total stockholders' equity  79,591   77,961 
         
Total liabilities and stockholders' equity $641,438  $614,340 
         



Randolph Bancorp, Inc.
Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2019  2018  2019  2018 
Interest and dividend income:                
Loans $6,144  $5,036  $17,791  $13,917 
Other interest and dividend income  397   432   1,221   1,317 
Total interest and dividend income  6,541   5,468   19,012   15,234 
                 
Interest expense  1,968   1,208   5,570   2,958 
                 
Net interest income  4,573   4,260   13,442   12,276 
Provision (credit) for loan losses  -   178   (144)  183 
Net interest income after provision (credit) for loan losses  4,573   4,082   13,586   12,093 
                 
Non-interest income:                
Customer service fees  363   357   1,053   1,096 
Gain on loan origination and sale activities, net  5,782   1,956   13,438   5,356 
Mortgage servicing fees, net  (181)  310   362   935 
Gain on sale of building  -   230   -   230 
Gain on sales of securities  -   -   -   49 
Other  339   355   718   732 
Total non-interest income  6,303   3,208   15,571   8,398 
Non-interest expenses:                
Salaries and employee benefits  7,010   4,788   18,514   14,166 
Occupancy and equipment  673   728   1,972   2,157 
Professional fees  264   252   819   824 
Marketing  275   205   644   867 
Other non-interest expenses  1,496   1,454   4,512   4,322 
Total non-interest expenses  9,718   7,427   26,461   22,336 
Income (loss) before income taxes  1,158   (137)  2,696   (1,845)
Income tax expense  14   5   97   14 
                 
Net income (loss) $1,144  $(142) $2,599  $(1,859)
                 
Net income (loss) per share (basic and diluted) $0.21  $(0.03) $0.48  $(0.33)
                 
Weighted average shares outstanding  5,345,786   5,567,596   5,429,339   5,585,571 
                 



Randolph Bancorp, Inc.
Averages Balances/Yields
(Dollars in thousands)
(Unaudited)

 Average Balance and Yields 
 For the Three Months Ended September 30, 
 2019  2018 
 Average  Interest  Average  Average  Interest  Average 
 Outstanding  Earned/  Yield/  Outstanding  Earned/  Yield/ 
(Dollars in thousands)Balance  Paid  Rate  Balance  Paid  Rate 
Interest-earning assets:                       
  Loans (1)$573,899  $6,144   4.28% $481,732  $5,036   4.18%
  Investment securities(2) (3) 53,947   377   2.80%  58,864   410   2.79%
  Interest-earning deposits 4,881   23   1.88%  5,201   27   2.08%
Total interest-earning assets 632,727   6,544   4.14%  545,797   5,473   4.01%
Noninterest-earning assets 14,757           27,994         
Total assets$647,484          $573,791         
Interest-bearing liabilities:                       
  Savings accounts 107,764   149   0.55%  102,712   46   0.18%
  NOW accounts 38,697   47   0.49%  42,312   52   0.49%
  Money market accounts 64,058   251   1.57%  61,384   190   1.24%
  Term certificates 182,073   918   2.02%  153,239   577   1.51%
Total interest-bearing deposits 392,592   1,365   1.39%  359,647   865   0.96%
  FHLBB advances 101,933   603   2.37%  65,247   343   2.10%
Total interest-bearing liabilities 494,525   1,968   1.59%  424,894   1,208   1.14%
Noninterest-bearing liabilities:                       
  Noninterest-bearing deposits 62,456           63,396         
  Other noninterest-bearing liabilities 10,138           6,231         
Total liabilities 567,119           494,521         
Total stockholders' equity 80,365           79,270         
Total liabilities and stockholders' equity$647,484          $573,791         
Net interest income    $4,576          $4,265     
Interest rate spread(4)         2.55%          2.87%
Net interest-earning assets(5)$138,202          $120,903         
Net interest margin(6)         2.89%          3.13%
                        
Ratio of interest-earning assets to interest-bearing liabilities 127.95%          128.45%        

                                               
(1) Includes nonaccruing loan balances and interest received on such loans.
(2) Includes carrying value of securities classified as available-for-sale and FHLB of Boston stock
(3) Includes tax equivalent adjustments for municipal securities, based on an effective tax rate of 21%, of $3,000 and $5,000 for the three months ended September 30, 2019 and 2018, respectively.
(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.



Randolph Bancorp, Inc.
Averages Balances/Yields
(Dollars in thousands)
(Unaudited)

 Average Balance and Yields 
 For the Nine Months Ended September 30, 
 2019  2018 
 Average  Interest  Average  Average  Interest  Average 
 Outstanding  Earned/  Yield/  Outstanding  Earned/  Yield/ 
(Dollars in thousands)Balance  Paid  Rate  Balance  Paid  Rate 
Interest-earning assets:                       
  Loans (1)$549,665  $17,791   4.32% $453,290  $13,917   4.09%
  Investment securities(2) (3) 54,350   1,154   2.83%  60,225   1,254   2.78%
  Interest-earning deposits 5,132   77   2.00%  7,442   91   1.63%
Total interest-earning assets 609,147   19,022   4.16%  520,957   15,262   3.91%
Noninterest-earning assets 21,228           28,997         
Total assets$630,375          $549,954         
Interest-bearing liabilities:                       
  Savings accounts 104,530   337   0.43%  103,774   133   0.17%
  NOW accounts 39,466   144   0.49%  43,215   166   0.51%
  Money market accounts 65,609   712   1.45%  66,241   461   0.93%
  Term certificates 171,827   2,552   1.98%  126,452   1,314   1.39%
Total interest-bearing deposits 381,432   3,745   1.31%  339,682   2,074   0.81%
  FHLBB advances 98,817   1,825   2.46%  63,089   884   1.87%
Total interest-bearing liabilities 480,249   5,570   1.55%  402,771   2,958   0.98%
Noninterest-bearing liabilities:                       
  Noninterest-bearing deposits 62,194           61,005         
  Other noninterest-bearing liabilities 8,681           6,110         
Total liabilities 551,124           469,886         
Total stockholders' equity 79,251           80,068         
Total liabilities and stockholders' equity$630,375          $549,954         
Net interest income    $13,452          $12,304     
Interest rate spread(4)         2.61%          2.93%
Net interest-earning assets(5)$128,898          $118,186         
Net interest margin(6)         2.94%          3.15%
                        
Ratio of interest-earning assets to interest-bearing liabilities 126.84%          129.34%        

(1) Includes nonaccruing loan balances and interest received on such loans.
(2) Includes carrying value of securities classified as available-for-sale and FHLB of Boston stock
(3) Includes tax equivalent adjustments for municipal securities, based on an effective tax rate of 21%, of $10,000 and $28,000 for the nine months ended September 30, 2019 and 2018, respectively.
(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.



Randolph Bancorp, Inc.
Rate/Volume Analysis
(Dollars in thousands)
(Unaudited)

 Three Months Ended 
 September 30, 2019 v. 2018 
 Increase (Decrease)  Total 
 Due to Changes in  Increase 
 Volume  Rate  (Decrease) 
Interest-earning assets:           
  Loans$984  $124  $1,108 
  Investment securities (34)  1   (33)
  Interest-earning deposits (2)  (2)  (4)
   Total interest-earning assets 948   123   1,071 
Interest-bearing liabilities:           
Savings accounts 2   101   103 
NOW accounts (4)  (1)  (5)
Money market accounts 9   52   61 
Term certificates 122   219   341 
   Total interest-bearing deposits 129   371   500 
FHLBB advances 213   47   260 
  Total interest-bearing liabilities 342   418   760 
            
Change in net interest income$606  $(295) $311 
            
 Nine Months Ended 
 September 30, 2019 v. 2018 
 Increase (Decrease)  Total 
 Due to Changes in  Increase 
 Volume  Rate  (Decrease) 
Interest-earning assets:           
  Loans$3,087  $787  $3,874 
  Investment securities (110)  10   (100)
  Interest-earning deposits (24)  10   (14)
   Total interest-earning assets 2,953   807   3,760 
Interest-bearing liabilities:           
Savings accounts 1   203   204 
NOW accounts (14)  (8)  (22)
Money market accounts (2)  253   251 
Term certificates 564   674   1,238 
   Total interest-bearing deposits 549   1,122   1,671 
FHLBB advances 603   338   941 
  Total interest-bearing liabilities 1,152   1,460   2,612 
            
Change in net interest income$1,801  $(653) $1,148 
            



Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)

  For the Three Months Ended September 30, 2019 
  Envision
Bank
  Envision
Mortgage
  Consolidated
Total
 
Net interest income $3,781  $792  $4,573 
Provision (credit) for loan losses  -   -   - 
             
Net interest income after provision (credit) for loan losses  3,781   792   4,573 
             
Non-interest income:            
Customer service fees  331   32   363 
Gain on loan origination and sale activities, net (1)  -   6,010   6,010 
Mortgage servicing fees, net  (93)  (88)  (181)
Other  242   97   339 
Total non-interest income  480   6,051   6,531 
             
Non-interest expenses:            
Salaries and employee benefits  1,966   5,044   7,010 
Occupancy and equipment  367   306   673 
Other non-interest expenses  1,184   851   2,035 
Total non-interest expenses  3,517   6,201   9,718 
             
Income before income taxes and elimination of inter-segment profit $744  $642   1,386 
             
Elimination of inter-segment profit          (228)
Income before income taxes          1,158 
             
Income tax expense          14 
Net income         $1,144 

(1) Before elimination of inter-segment profit

The information above was derived from the internal management reporting system used by management to measure performance of the segments.



Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)

  For the Three Months Ended September 30, 2018 
  Envision
Bank
  Envision
Mortgage
  Consolidated
Total
 
Net interest income $4,002  $258  $4,260 
Provision for loan losses  178   -   178 
             
Net interest income after credit for loan losses  3,824   258   4,082 
             
Non-interest income:            
Customer service fees  324   33   357 
Gain on loan origination and sale activities, net (1)  -   2,263   2,263 
Mortgage servicing fees, net  (81)  391   310 
Other  400   185   585 
Total non-interest income  643   2,872   3,515 
             
Non-interest expenses:            
Salaries and employee benefits  1,601   3,187   4,788 
Occupancy and equipment  317   411   728 
Other non-interest expenses  1,117   794   1,911 
Total non-interest expenses  3,035   4,392   7,427 
             
Income (loss) before income taxes and elimination of inter-segment profit $1,432  $(1,262)  170 
             
Elimination of inter-segment profit          (307)
Loss before income taxes          (137)
             
Income tax expense          5 
Net loss         $(142)

(1) Before elimination of inter-segment profit

The information above was derived from the internal management reporting system used by management to measure performance of the segments.



Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)

  For the Nine Months Ended September 30, 2019 
  Envision
Bank
  Envision
Mortgage
  Consolidated
Total
 
Net interest income $12,123  $1,319  $13,442 
Credit for loan losses  (144)  -   (144)
             
Net interest income after credit for loan losses  12,267   1,319   13,586 
             
Non-interest income:            
Customer service fees  947   106   1,053 
Gain on loan origination and sale activities, net (1)  -   14,043   14,043 
Mortgage servicing fees, net  (273)  635   362 
Other  465   253   718 
Total non-interest income  1,139   15,037   16,176 
             
Non-interest expenses:            
Salaries and employee benefits  5,292   13,222   18,514 
Occupancy and equipment  1,137   835   1,972 
Other non-interest expenses  3,436   2,539   5,975 
Total non-interest expenses  9,865   16,596   26,461 
             
Income (loss) before income taxes and elimination of inter-segment profit $3,541  $(240)  3,301 
             
Elimination of inter-segment profit          (605)
Income before income taxes          2,696 
             
Income tax expense          97 
Net income         $2,599 
             
Total Assets September 30, 2019 $509,021  $132,417  $641,438 

(1) Before elimination of inter-segment profit

The information above was derived from the internal management reporting system used by management to measure performance of the segments.



Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)

  For the Nine Months Ended September 30, 2018 
  Envision
Bank
  Envision
Mortgage
  Consolidated
Total
 
Net interest income $11,541  $735  $12,276 
Provision for loan losses  183   -   183 
             
Net interest income after provision for loan losses  11,358   735   12,093 
             
Non-interest income:            
Customer service fees  1,035   61   1,096 
Gain on loan origination and sale activities, net (1)  -   6,327   6,327 
Mortgage servicing fees, net  (222)  1,157   935 
Other  648   363   1,011 
Total non-interest income  1,461   7,908   9,369 
             
Non-interest expenses:            
Salaries and employee benefits  4,849   9,317   14,166 
Occupancy and equipment  1,090   1,067   2,157 
Other non-interest expenses  3,355   2,658   6,013 
Total non-interest expenses  9,294   13,042   22,336 
             
Income (loss) before income taxes and elimination of inter-segment profit $3,525  $(4,399)  (874)
             
Elimination of inter-segment profit          (971)
Loss before income taxes          (1,845)
             
Income tax expense          14 
Net loss         $(1,859)
             
Total Assets September 30, 2018 $521,139  $68,543  $589,682 

(1) Before elimination of inter-segment profit

The information above was derived from the internal management reporting system used by management to measure performance of the segments.



Randolph Bancorp, Inc.
Selected Financial Highlights
(Unaudited)

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2019  2018  2019  2018 
                 
Return on average assets (1)  0.71%  (0.10%)  0.55%  (0.45%)
                 
Return on average equity (1)  5.69%  (0.72%)  4.37%  (3.10%)
                 
Net interest margin  2.89%  3.13%  2.94%  3.15%
                 
Non-interest income to total income  49.07%  36.98%  45.03%  35.54%
                 
Efficiency ratio  89.35%  99.45%  91.20%  108.04%
                 
Tier 1 capital to average assets (2)  12.28%  14.10%  12.28%  14.10%
                 
Nonperforming assets as a percentage of total assets  0.54%  0.35%  0.54%  0.35%
                 
Allowance for loan losses as a percentage of total loans (3)  0.90%  0.82%  0.90%  0.82%
                 
Allowance for loan losses as a percentage of non-performing loans  120.20%  186.21%  120.20%  186.21%
                 
Tangible book value per share  13.95   13.04   13.95   13.04 

(1) Annualized for quarterly and year-to-date periods presented.
(2) Average assets calculated on a quarterly basis for all periods presented
(3) Total loans excludes loans held for sale but includes net deferred loan costs and fees


For More Information, Contact:
Michael K. Devlin, Executive Vice President and Chief Financial Officer (617-925-1961)
mdevlin@envisionbank.com

Randolp Bancorp - RGB.png

Source: Envision Bank