Randolph Bancorp, Inc. Announces Fourth Quarter 2021

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
wparent@envisionbank.com

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