Randolph Bancorp, Inc. Announces First Quarter 2022 Financial Results
QUINCY, Mass., April 26, 2022 (GLOBE NEWSWIRE) — Randolph Bancorp, Inc. (the “Company” or “Randolph”) (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the “Bank”), today announced a net loss of $235,000, or $0.05 per basic share and diluted share, for the three months ended March 31, 2022 compared to net income of $786,000, or $0.17 per basic share and $0.16 per diluted share, for the three months ended December 31, 2021 and net income of $4.1 million, or $0.81 per basic share and $0.78 per diluted share, for the three months ended March 31, 2021. Excluding one-time events of $240,000 in severance expenses, $588,000 in merger expenses, and $290,000 for the reversal of a cease use liability, net income on a non-GAAP basis was $318,000, or $0.06 per diluted share, for the three months ended March 31, 2022. Excluding one-time events of $26,000 in severance expenses and $55,000 in loss on disposal of fixed assets, net income on a non-GAAP basis was $844,000, or $0.17 per diluted share, for the three months ended December 31, 2021. Excluding one-time charges of $109,000 in severance expenses, net income on a non-GAAP basis for the three months ended March 31, 2021 was $4.2 million, or $0.79 per diluted share.
At March 31, 2022, total assets were $770.3 million, compared to $803.3 million at December 31, 2021, a decrease of $33.0 million, or 4.1%. Total loans increased by $35.0 million, or 6.4%, to $584.8 million at March 31, 2022 from $549.8 million at December 31, 2021, and loans held for sale decreased by $22.1 million to $22.7 million at March 31, 2022 from $44.8 million at December 31, 2021. Cash and cash equivalents decreased by $44.4 million, or 38.4%, to $71.1 million at March 31, 2022, from $115.4 million as of December 31, 2021, as a result of decreases in brokered deposits and Federal Home Loan Bank of Boston (“FHLBB”) advances of $17.0 million and $5.0 million, respectively, in the quarter, dividends paid of $11.2 million, and net loan growth of $35.0 million, partially offset by a decrease in loans held for sale of $22.1 million. Compared to March 31, 2021, total assets grew $32.1 million, or 4.3%, from $738.2 million. The growth from the prior year period was driven by increases in total loans of $87.0 million, or 17.5%, and cash and cash equivalents of $16.1 million, or 29.3%, partially offset by a decrease in loans held for sale of $70.5 million, or 75.6%.
William M. Parent, President and Chief Executive Officer, stated, “In the first quarter, we saw many challenges in the mortgage banking environment, as the extent and pace of interest rate increases, and the slower winter season negatively impacted residential lending production and mortgage banking profitability. We are excited by the recently announced merger with Hometown Financial Group, Inc. and look forward to the anticipated closing of that transaction in the fourth quarter of 2022. I want to thank all of our employees who continue to contribute to the ongoing improvement of our company and their commitment to our customers.”
First Quarter Operating Results
Net interest income decreased by $427,000, or 7.5%, to $5.3 million for the three months ended March 31, 2022 from $5.7 million for the three months ended December 31, 2021. This decrease was primarily due to a 14.1% decrease in average balances of 1-4 family residential loans, as a result of declining loans held for sale and the full quarter impact of a $35.6 million sale from portfolio occurring late in the fourth quarter of 2021 and a $52,000 decline in accretion of fees earned from the Small Business Administration’s Paycheck Protection Program (“SBA PPP”) to $106,000 in the first quarter of 2022. The yield earned on interest-earning assets decreased by 28 basis points from the prior quarter due to the change in asset mix, while the rate paid on interest-bearing liabilities was unchanged from the prior quarter. Accordingly, the net interest margin decreased by 28 basis points, to 2.86% in the first quarter of 2022 from 3.14% in the fourth quarter of 2021.
Net interest income increased by $176,000, or 3.5%, to $5.3 million for the three months ended March 31, 2022, from $5.1 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin decreased by 14 basis points to 2.86%, from 3.00%. The improvement in net interest income primarily reflects a decrease in the cost of interest-bearing liabilities of 19 basis points from the prior year quarter.
The Company recognized a provision for loan losses of $71,000 for the quarter ended March 31, 2022, driven by loan growth. The allowance for loan losses was 1.09%, 1.14% and 1.32% of total loans at March 31, 2022, December 31, 2021 and March 31, 2021, respectively, and was 237.2%, 239.7% and 79.0% of non-performing assets at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
Non-interest income decreased $2.3 million, or 51.7%, to $2.2 million for the quarter ended March 31, 2022 from $4.5 million in the quarter ended December 31, 2021, due to a decrease of $2.5 million in the net gain on loan origination and sale activities. Sold mortgages totaled $129.9 million in the first quarter of 2022, compared to $297.3 million in the fourth quarter of 2021. The first quarter of 2022 ended with a mortgage pipeline of $42.7 million, compared to a pipeline of $85.9 million at the end of the fourth quarter of 2021, and loans held for sale were $22.7 million as of March 31, 2022, compared to $44.8 million as of December 31, 2021. Decreasing sales volumes and declines in the fair value of loans held for sale, reflecting rising interest rates and seasonality, contributed to the erosion in the gain on loan origination and sale activities from the prior quarter. Mortgage servicing fees increased $91,000, or 35.4%, to $348,000 for the first quarter of 2022 from $257,000 in the fourth quarter of 2021 as a result of a release to the valuation allowance of mortgage loan servicing rights of $135,000 in the first quarter of 2022, compared to a release of $43,000 in the fourth quarter of 2021, as interest rates increased at an accelerated pace in the first quarter of 2022.
Non-interest income decreased $10.2 million, or 82.4%, to $2.2 million for the quarter ended March 31, 2022 from $12.4 million for the quarter ended March 31, 2021, principally due to a decrease of $9.7 million in the net gain on loan origination and sale activities. Sold mortgage loans totaled $129.9 million in the first quarter of 2022, compared to $503.3 million in the first quarter of 2021. The first quarter of 2022 ended with a mortgage pipeline of $42.7 million, compared to a pipeline of $239.5 million at the end of the first quarter of 2021. Mortgage servicing fees decreased $431,000 in the quarter ended March 31, 2022, relative to the prior year quarter, principally due to $315,000 in sub-servicer expenses incurred during the first quarter of 2022, as well as a decline in the release to the valuation allowance of mortgage loan servicing rights to $135,000 in the quarter ended March 31, 2022, compared to a release of $421,000 in the quarter ended March 31, 2021.
Non-interest expenses decreased $515,000, or 5.6%, in the quarter ended March 31, 2022 from $9.2 million in the quarter ended December 31, 2021. The decrease was due to a reduction in salaries and employee benefits expense of $930,000, or 15.3%, primarily attributed to lower commissions and incentives associated with lower residential loan production and by reductions in headcount related to the Company’s reduction in force initiative during the first quarter of 2022. Occupancy and equipment expenses decreased $348,000, or 48.8%, primarily due to the reversal of a cease use liability of $290,000 during the quarter. The decreases in salaries and employee benefits expenses and occupancy and equipment expenses were partially offset by severance expenses of $240,000 and increases to professional fees of $700,000, or 215.4%, as a result of $588,000 in merger expenses, in addition to seasonal increases in professional fees for annual reporting requirements.
Non-interest expenses decreased $3.2 million, or 27.2%, to $8.7 million in the quarter ended March 31, 2022 from $12.0 million in the quarter ended March 31, 2021. The decrease was principally due to a decrease in salaries and employee benefits of $3.3 million, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production and reduced headcount. The decreases in salaries and benefits expenses and occupancy and equipment expenses were partially offset by severance related costs $240,000 and merger expenses of $588,000 during the first quarter of 2022.
The income tax benefit was $1.1 million for the three months ended March 31, 2022, compared to an income tax expense of $330,000 for the three months ended December 31, 2021 and $1.7 million for the three months ended March 31, 2021. Non-qualified stock option exercises during the quarter contributed to the income tax benefit, in addition to the net loss generated during the quarter.
Balance Sheet
At March 31, 2022, total assets amounted to $770.3 million, compared to $803.3 million at December 31, 2021, a decrease of $33.0 million, or 4.1%. A $44.4 million decrease in cash and cash equivalents and a $22.1 million decrease in loans held for sale from the prior quarter were partially offset by a $35.0 million increase in net loans. The increase in net loans was primarily the result of a $35.4 million increase in 1-4 family residential loans from the prior quarter and a $1.8 million increase in commercial real estate loans, partially offset by decreases in construction and commercial and industrial loans. Deposits decreased by $13.5 million, or 2.1%, in the quarter, due to a $17.0 million decrease in brokered deposits, partially offset by an increase of $4.4 million in savings accounts and $2.2 million in money market accounts, as the Company managed its excess liquidity and the cost of its funding base.
Total assets at March 31, 2022 increased $32.1 million, or 4.3%, to $770.3 million from $738.2 million at March 31, 2021. Contributing to asset growth was an $87.6 million, or 17.7%, increase in net loans to $579.6 million at March 31, 2022 from $492.0 million at March 31, 2021. Cash and cash equivalents increased by $16.1 million, or 29.3%, to $71.1 million at March 31, 2022 from $55.0 million at March 31, 2021, principally due an increase of $64.4 million, or 11.5%, of deposits. Commercial real estate loans increased by $52.3 million, or 35.6%, as we focus on diversifying our loan mix. FHLBB advances decreased by $15.0 million to $45.0 million at March 31, 2022, from $60.0 million at March 31, 2021.
Total stockholders’ equity was $88.5 million at March 31, 2022 compared to $100.9 million at December 31, 2021. The decrease of $12.4 million reflects a net loss of $235,000, dividends of $11.2 million, a $1.8 million change in accumulated other comprehensive loss, net of taxes, as a result of the impact of increasing interest rates on available for sale securities, and share repurchases of $1.3 million, partially offset by proceeds from the exercise of options of $1.8 million and stock-based compensation of $284,000.
Total stockholders’ equity was $88.5 million at March 31, 2022 compared to $100.9 million at March 31, 2021. The decrease of $12.4 million relates mainly to dividends of $12.0 million, share repurchases of $7.0 million, and a change in accumulated other comprehensive loss, net of taxes, of $2.1 million, partially offset by net income over the past twelve months of $5.3 million, proceeds from the exercise of options of $2.0 million and stock-based compensation over the past twelve months of $1.2 million.
Proposed Transaction with Hometown Financial
On March 28, 2022, the Company and Hometown Financial Group, Inc. (“Hometown”) entered into an Agreement and Plan of Merger pursuant to which, through a series of transactions, Hometown will acquire the Company in a cash transaction for total consideration valued at approximately $146.5 million. Under the terms of the Agreement and Plan of Merger, Company shareholders will receive $27.00 for each share of Company common stock. The transaction is expected to close in the fourth quarter of 2022 and is subject to customary closing conditions, including approval by the shareholders of the Company and required regulatory approvals.
Additional information about the transaction can be found in the joint press release issued on March 28, 2022, which is available on the Company’s website at www.randolphbancorp.com.
Additional Information about the Proposed Transaction and Where to Find It
In connection with the proposed merger, the Company will file a proxy statement with the Securities and Exchange Commission (“SEC”). Hometown will also file relevant materials in connection with its proposed acquisition of the Company. Shareholders of the Company are urged to read the proxy statement and other relevant documents and any amendments or supplements to those documents, because they will contain important information which should be considered before making any decision regarding the transaction. A free copy of the proxy statement, as well as other filings containing information about the Company and Hometown, when they become available, may be obtained at the SEC’s Internet site (http://www.sec.gov). Copies of the proxy statement may also be obtained, free of charge, from the Company’s website at www.RandolphBancorp.com under the “SEC Filings” tab or by directing a request to:
Lauren Messmore
Executive Vice President and CFO
Randolph Bancorp, Inc.
2 Batterymarch Park, Suite 301
Quincy, MA 02169
Participants in the Solicitation
The Company and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company’s shareholders in connection with the merger. Information about the Company’s directors and executive officers is set forth in the proxy statement for the Company’s 2021 annual meeting of shareholders, as filed with the Securities and Exchange Commission on April 9, 2021 and other relevant documents regarding the proposed merger to be filed with the SEC. Free copies of these documents may be obtained as described in the preceding paragraph.
The information available through Randolph’s website is not and shall not be incorporated by reference into this or other filings that the Company makes with the SEC.
About Randolph Bancorp, Inc.
Randolph Bancorp, Inc. is the holding company for Envision Bank and its Envision Mortgage Division. Envision Bank is a full-service community bank with five retail branch locations, loan operations centers in North Attleboro and Quincy, Massachusetts, three loan production offices located in Massachusetts and one loan production office in Southern New Hampshire.
Forward Looking Statements
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “assume”, “outlook”, “will”, “should”, and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, failure to obtain necessary regulatory approvals for the proposed transaction with Hometown; failure to obtain shareholder approvals or to satisfy any of the conditions to the proposed transaction with Hometown on a timely basis or at all or other delays in completing the merger; the reputational risks and the reaction of Randolph’s customers to the proposed transaction; ongoing disruptions due to the COVID-19 pandemic and the measures taken to contain its spread on the Company’s employees, customers, business operations, credit quality, financial position, liquidity and results of operations; changes in the general business and economic conditions on a national basis and in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; changes in consumer behavior due to changing political, business and economic conditions or legislative or regulatory initiatives; reputational risk relating to the Company’s participation in the SBA PPP and other pandemic-related legislative and regulatory initiatives and programs; turbulence in the capital and debt markets and the impact of such conditions on the Company’s business activities; and the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as return on average assets, return on average equity, the efficiency ratio, profit percentage, tangible book value per share, non-interest income to total income and, where applicable, as adjusted for non-recurring items. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of on-going business activities, and to enhance comparability with peers across the financial services sector.
Randolph Bancorp, Inc.
Consolidated Balance Sheet
(Dollars in thousands)
(Unaudited)
| % Change | ||||||||||||||||||||
| March 31, | December 31, | March 31, | Mar 2022 vs. | Mar 2022 vs. | ||||||||||||||||
| 2022 | 2021 | 2021 | Dec 2021 | Mar 2021 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 71,072 | $ | 115,449 | $ | 54,950 | (38.4 | )% | 29.3 | % | ||||||||||
| Securities available for sale, at fair value | 48,836 | 51,666 | 54,148 | (5.5 | )% | (9.8 | )% | |||||||||||||
| Loans held for sale, at fair value | 22,698 | 44,766 | 93,176 | (49.3 | )% | (75.6 | )% | |||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | 271,755 | 236,364 | 239,190 | 15.0 | % | 13.6 | % | |||||||||||||
| Home equity | 58,501 | 57,295 | 49,073 | 2.1 | % | 19.2 | % | |||||||||||||
| Commercial real estate | 199,255 | 197,423 | 146,930 | 0.9 | % | 35.6 | % | |||||||||||||
| Construction | 32,544 | 33,961 | 29,975 | (4.2 | )% | 8.6 | % | |||||||||||||
| Total real estate loans | 562,055 | 525,043 | 465,168 | 7.0 | % | 20.8 | % | |||||||||||||
| Commercial and industrial | 15,478 | 17,242 | 23,869 | (10.2 | )% | (35.2 | )% | |||||||||||||
| Consumer | 7,267 | 7,552 | 8,724 | (3.8 | )% | (16.7 | )% | |||||||||||||
| Total loans | 584,800 | 549,837 | 497,761 | 6.4 | % | 17.5 | % | |||||||||||||
| Allowance for loan losses | (6,357 | ) | (6,289 | ) | (6,563 | ) | 1.1 | % | (3.1 | )% | ||||||||||
| Net deferred loan costs and fees, and purchase premiums | 1,148 | 1,073 | 785 | 7.0 | % | 46.2 | % | |||||||||||||
| Loans, net | 579,591 | 544,621 | 491,983 | 6.4 | % | 17.8 | % | |||||||||||||
| Federal Home Loan Bank of Boston stock, at cost | 2,734 | 2,940 | 3,576 | (7.0 | )% | (23.5 | )% | |||||||||||||
| Accrued interest receivable | 1,434 | 1,500 | 1,501 | (4.4 | )% | (4.5 | )% | |||||||||||||
| Mortgage servicing rights, net | 15,378 | 15,616 | 14,744 | (1.5 | )% | 4.3 | % | |||||||||||||
| Premises and equipment, net | 7,718 | 7,684 | 4,709 | 0.4 | % | 63.9 | % | |||||||||||||
| Bank-owned life insurance | 8,824 | 8,784 | 8,662 | 0.5 | % | 1.9 | % | |||||||||||||
| Foreclosed real estate, net | – | – | 132 | – | % | (100.0 | )% | |||||||||||||
| Other assets | 11,999 | 10,252 | 10,607 | 17.0 | % | 13.1 | % | |||||||||||||
| Total assets | $ | 770,284 | $ | 803,278 | $ | 738,188 | (4.1 | )% | 4.3 | % | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest bearing | $ | 142,793 | $ | 145,666 | $ | 118,623 | (2.0 | )% | 20.4 | % | ||||||||||
| Savings accounts | 196,145 | 191,712 | 192,712 | 2.3 | % | 1.8 | % | |||||||||||||
| NOW accounts | 53,329 | 53,996 | 62,772 | (1.2 | )% | (15.0 | )% | |||||||||||||
| Money market accounts | 92,769 | 90,544 | 78,236 | 2.5 | % | 18.6 | % | |||||||||||||
| Term certificates | 106,515 | 106,112 | 75,690 | 0.4 | % | 40.7 | % | |||||||||||||
| Interest bearing brokered | 33,128 | 50,117 | 32,225 | (33.9 | )% | 2.8 | % | |||||||||||||
| Total deposits | 624,679 | 638,147 | 560,258 | (2.1 | )% | 11.5 | % | |||||||||||||
| Federal Home Loan Bank of Boston advances | 45,000 | 50,000 | 60,024 | (10.0 | )% | (25.0 | )% | |||||||||||||
| Mortgagors’ escrow accounts | 2,773 | 2,128 | 1,924 | 30.3 | % | 44.1 | % | |||||||||||||
| Post-employment benefit obligations | 2,064 | 2,222 | 2,235 | (7.1 | )% | (7.7 | )% | |||||||||||||
| Other liabilities | 7,290 | 9,878 | 12,888 | (26.2 | )% | (43.4 | )% | |||||||||||||
| Total liabilities | 681,806 | 702,375 | 637,329 | (2.9 | )% | 7.0 | % | |||||||||||||
| Stockholders’ Equity: | ||||||||||||||||||||
| Common stock | 52 | 50 | 53 | 4.0 | % | (1.9 | )% | |||||||||||||
| Additional paid-in capital | 44,904 | 44,078 | 48,613 | 1.9 | % | (7.6 | )% | |||||||||||||
| Retained earnings | 49,042 | 60,524 | 55,801 | (19.0 | )% | (12.1 | )% | |||||||||||||
| ESOP-Unearned compensation | (3,521 | ) | (3,568 | ) | (3,709 | ) | (1.3 | )% | (5.1 | )% | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | (1,999 | ) | (181 | ) | 101 | 1004.4 | % | (2079.2 | )% | |||||||||||
| Total stockholders’ equity | 88,478 | 100,903 | 100,859 | (12.3 | )% | (12.3 | )% | |||||||||||||
| Total liabilities and stockholders’ equity | $ | 770,284 | $ | 803,278 | $ | 738,188 | (4.1 | )% | 4.3 | % | ||||||||||
Randolph Bancorp, Inc.
Consolidated Balance Sheet Trend
(Dollars in thousands)
(Unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 71,072 | $ | 115,449 | $ | 12,876 | $ | 34,876 | $ | 54,950 | ||||||||||
| Securities available for sale, at fair value | 48,836 | 51,666 | 51,725 | 50,212 | 54,148 | |||||||||||||||
| Loans held for sale, at fair value | 22,698 | 44,766 | 75,400 | 74,277 | 93,176 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | 271,755 | 236,364 | 265,561 | 263,992 | 239,190 | |||||||||||||||
| Home equity | 58,501 | 57,295 | 56,124 | 50,555 | 49,073 | |||||||||||||||
| Commercial real estate | 199,255 | 197,423 | 185,100 | 167,691 | 146,930 | |||||||||||||||
| Construction | 32,544 | 33,961 | 34,479 | 29,140 | 29,975 | |||||||||||||||
| Total real estate loans | 562,055 | 525,043 | 541,264 | 511,378 | 465,168 | |||||||||||||||
| Commercial and industrial | 15,478 | 17,242 | 19,896 | 25,826 | 23,869 | |||||||||||||||
| Consumer | 7,267 | 7,552 | 8,860 | 9,194 | 8,724 | |||||||||||||||
| Total loans | 584,800 | 549,837 | 570,020 | 546,398 | 497,761 | |||||||||||||||
| Allowance for loan losses | (6,357 | ) | (6,289 | ) | (6,432 | ) | (6,523 | ) | (6,563 | ) | ||||||||||
| Net deferred loan costs and fees, and purchase premiums | 1,148 | 1,073 | 1,031 | 785 | 785 | |||||||||||||||
| Loans, net | 579,591 | 544,621 | 564,619 | 540,660 | 491,983 | |||||||||||||||
| Federal Home Loan Bank of Boston stock, at cost | 2,734 | 2,940 | 3,239 | 2,855 | 3,576 | |||||||||||||||
| Accrued interest receivable | 1,434 | 1,500 | 1,763 | 1,523 | 1,501 | |||||||||||||||
| Mortgage servicing rights, net | 15,378 | 15,616 | 15,402 | 15,375 | 14,744 | |||||||||||||||
| Premises and equipment, net | 7,718 | 7,684 | 6,462 | 5,115 | 4,709 | |||||||||||||||
| Bank-owned life insurance | 8,824 | 8,784 | 8,744 | 8,703 | 8,662 | |||||||||||||||
| Foreclosed real estate, net | – | – | – | – | 132 | |||||||||||||||
| Other assets | 11,999 | 10,252 | 10,867 | 10,546 | 10,607 | |||||||||||||||
| Total assets | $ | 770,284 | $ | 803,278 | $ | 751,097 | $ | 744,142 | $ | 738,188 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest bearing | $ | 142,793 | $ | 145,666 | $ | 134,058 | $ | 124,683 | $ | 118,623 | ||||||||||
| Savings accounts | 196,145 | 191,712 | 188,346 | 190,584 | 192,712 | |||||||||||||||
| NOW accounts | 53,329 | 53,996 | 53,804 | 51,059 | 62,772 | |||||||||||||||
| Money market accounts | 92,769 | 90,544 | 73,562 | 73,967 | 78,236 | |||||||||||||||
| Term certificates | 106,515 | 106,112 | 73,519 | 74,631 | 75,690 | |||||||||||||||
| Interest bearing brokered | 33,128 | 50,117 | 50,116 | 57,059 | 32,225 | |||||||||||||||
| Total deposits | 624,679 | 638,147 | 573,405 | 571,983 | 560,258 | |||||||||||||||
| Federal Home Loan Bank of Boston advances | 45,000 | 50,000 | 62,900 | 50,016 | 60,024 | |||||||||||||||
| Mortgagors’ escrow accounts | 2,773 | 2,128 | 1,905 | 1,783 | 1,924 | |||||||||||||||
| Post-employment benefit obligations | 2,064 | 2,222 | 2,182 | 2,226 | 2,235 | |||||||||||||||
| Other liabilities | 7,290 | 9,878 | 10,108 | 17,424 | 12,888 | |||||||||||||||
| Total liabilities | 681,806 | 702,375 | 650,500 | 643,432 | 637,329 | |||||||||||||||
| Stockholders’ Equity: | ||||||||||||||||||||
| Common stock | 52 | 50 | 50 | 52 | 53 | |||||||||||||||
| Additional paid-in capital | 44,904 | 44,078 | 43,574 | 46,740 | 48,613 | |||||||||||||||
| Retained earnings | 49,042 | 60,524 | 60,504 | 57,378 | 55,801 | |||||||||||||||
| ESOP-Unearned compensation | (3,521 | ) | (3,568 | ) | (3,615 | ) | (3,662 | ) | (3,709 | ) | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | (1,999 | ) | (181 | ) | 84 | 202 | 101 | |||||||||||||
| Total stockholders’ equity | 88,478 | 100,903 | 100,597 | 100,710 | 100,859 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 770,284 | $ | 803,278 | $ | 751,097 | $ | 744,142 | $ | 738,188 | ||||||||||
Randolph Bancorp, Inc.
Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
| Three Months Ended | % Change | |||||||||||||||||||
| March 31, | December 31, | March 31, | Mar 2022 vs. | Mar 2022 vs. | ||||||||||||||||
| 2022 | 2021 | 2021 | Dec 2021 | Mar 2021 | ||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Loans | $ | 5,467 | $ | 5,923 | $ | 5,508 | (7.7 | )% | (0.7 | )% | ||||||||||
| Securities-taxable | 216 | 217 | 240 | (0.5 | )% | (10.0 | )% | |||||||||||||
| Securities-tax exempt | 4 | 4 | 6 | 0.0 | % | (33.3 | )% | |||||||||||||
| Interest-bearing deposits and certificates of deposit | 42 | 13 | 7 | 223.1 | % | 500.0 | % | |||||||||||||
| Total interest and dividend income | 5,729 | 6,157 | 5,761 | (7.0 | )% | (0.6 | )% | |||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 315 | 308 | 438 | 2.3 | % | (28.1 | )% | |||||||||||||
| Borrowings | 147 | 155 | 232 | (5.2 | )% | (36.6 | )% | |||||||||||||
| Total interest expense | 462 | 463 | 670 | (0.2 | )% | (31.0 | )% | |||||||||||||
| Net interest income | 5,267 | 5,694 | 5,091 | (7.5 | )% | 3.5 | % | |||||||||||||
| Provision (credit) for loan losses | 71 | (108 | ) | (213 | ) | (165.7 | )% | (133.3 | )% | |||||||||||
| Net interest income after provision (credit) for loan losses | 5,196 | 5,802 | 5,304 | (10.4 | )% | (2.0 | )% | |||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Customer service fees | 365 | 422 | 367 | (13.5 | )% | (0.5 | )% | |||||||||||||
| Gain on loan origination and sale activities, net | 1,264 | 3,723 | 10,993 | (66.0 | )% | (88.5 | )% | |||||||||||||
| Mortgage servicing fees, net | 348 | 257 | 779 | 35.4 | % | (55.3 | )% | |||||||||||||
| Increase in cash surrender value of life insurance | 40 | 41 | 40 | (2.4 | )% | 0.0 | % | |||||||||||||
| Other | 175 | 92 | 244 | 90.2 | % | (28.3 | )% | |||||||||||||
| Total non-interest income | 2,192 | 4,535 | 12,423 | (51.7 | )% | (82.4 | )% | |||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Salaries and employee benefits | 5,154 | 6,084 | 8,437 | (15.3 | )% | (38.9 | )% | |||||||||||||
| Occupancy and equipment | 365 | 713 | 744 | (48.8 | )% | (50.9 | )% | |||||||||||||
| Data processing | 345 | 237 | 263 | 45.6 | % | 31.2 | % | |||||||||||||
| Professional fees | 1,025 | 325 | 561 | 215.4 | % | 82.7 | % | |||||||||||||
| Marketing | 157 | 245 | 170 | (35.9 | )% | (7.6 | )% | |||||||||||||
| FDIC insurance | 58 | 55 | 54 | 5.5 | % | 7.4 | % | |||||||||||||
| Other non-interest expenses | 1,602 | 1,562 | 1,722 | 2.6 | % | (7.0 | )% | |||||||||||||
| Total non-interest expenses | 8,706 | 9,221 | 11,951 | (5.6 | )% | (27.2 | )% | |||||||||||||
| Income (loss) before income taxes | (1,318 | ) | 1,116 | 5,776 | (218.1 | )% | (122.8 | )% | ||||||||||||
| Income tax expense (benefit) | (1,083 | ) | 330 | 1,664 | (428.2 | )% | (165.1 | )% | ||||||||||||
| Net income (loss) | $ | (235 | ) | $ | 786 | $ | 4,112 | (129.9 | )% | (105.7 | )% | |||||||||
| Net income (loss) per share: | ||||||||||||||||||||
| Basic | $ | (0.05 | ) | $ | 0.17 | $ | 0.81 | |||||||||||||
| Diluted | $ | (0.05 | ) | $ | 0.16 | $ | 0.78 | |||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 4,815,325 | 4,743,833 | 5,056,165 | |||||||||||||||||
| Diluted | 5,014,538 | 4,993,750 | 5,254,907 | |||||||||||||||||
| Dividends declared per share | $ | 2.15 | $ | 0.15 | $ | – | ||||||||||||||
Randolph Bancorp, Inc.
Consolidated Statements of Operations Trend
(Dollars in thousands except per share amounts)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Loans | $ | 5,467 | $ | 5,923 | $ | 6,226 | $ | 5,505 | $ | 5,508 | ||||||||||
| Securities-taxable | 216 | 217 | 219 | 223 | 240 | |||||||||||||||
| Securities-tax exempt | 4 | 4 | 4 | 6 | 6 | |||||||||||||||
| Interest-bearing deposits and certificates of deposit | 42 | 13 | 4 | 8 | 7 | |||||||||||||||
| Total interest and dividend income | 5,729 | 6,157 | 6,453 | 5,742 | 5,761 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 315 | 308 | 299 | 345 | 438 | |||||||||||||||
| Borrowings | 147 | 155 | 178 | 198 | 232 | |||||||||||||||
| Total interest expense | 462 | 463 | 477 | 543 | 670 | |||||||||||||||
| Net interest income | 5,267 | 5,694 | 5,976 | 5,199 | 5,091 | |||||||||||||||
| Provision (credit) for loan losses | 71 | (108 | ) | (90 | ) | (27 | ) | (213 | ) | |||||||||||
| Net interest income after provision (credit) for loan losses | 5,196 | 5,802 | 6,066 | 5,226 | 5,304 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Customer service fees | 365 | 422 | 410 | 419 | 367 | |||||||||||||||
| Gain on loan origination and sale activities, net | 1,264 | 3,723 | 7,229 | 5,740 | 10,993 | |||||||||||||||
| Mortgage servicing fees, net | 348 | 257 | 274 | 381 | 779 | |||||||||||||||
| Increase in cash surrender value of life insurance | 40 | 41 | 41 | 41 | 40 | |||||||||||||||
| Other | 175 | 92 | 195 | 235 | 244 | |||||||||||||||
| Total non-interest income | 2,192 | 4,535 | 8,149 | 6,816 | 12,423 | |||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Salaries and employee benefits | 5,154 | 6,084 | 6,381 | 7,310 | 8,437 | |||||||||||||||
| Occupancy and equipment | 365 | 713 | 714 | 621 | 744 | |||||||||||||||
| Data processing | 345 | 237 | 367 | 301 | 263 | |||||||||||||||
| Professional fees | 1,025 | 325 | 490 | 323 | 561 | |||||||||||||||
| Marketing | 157 | 245 | 134 | 200 | 170 | |||||||||||||||
| FDIC insurance | 58 | 55 | 54 | 54 | 54 | |||||||||||||||
| Other non-interest expenses | 1,602 | 1,562 | 1,719 | 1,818 | 1,722 | |||||||||||||||
| Total non-interest expenses | 8,706 | 9,221 | 9,859 | 10,627 | 11,951 | |||||||||||||||
| Income (loss) before income taxes | (1,318 | ) | 1,116 | 4,356 | 1,415 | 5,776 | ||||||||||||||
| Income tax expense (benefit) | (1,083 | ) | 330 | 1,230 | (162 | ) | 1,664 | |||||||||||||
| Net income (loss) | $ | (235 | ) | $ | 786 | $ | 3,126 | $ | 1,577 | $ | 4,112 | |||||||||
| Net income (loss) per share: | ||||||||||||||||||||
| Basic | $ | (0.05 | ) | $ | 0.17 | $ | 0.64 | $ | 0.32 | $ | 0.81 | |||||||||
| Diluted | $ | (0.05 | ) | $ | 0.16 | $ | 0.62 | $ | 0.31 | $ | 0.78 | |||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 4,815,325 | 4,743,833 | 4,869,155 | 4,921,182 | 5,056,165 | |||||||||||||||
| Diluted | 5,014,538 | 4,993,750 | 5,074,676 | 5,135,582 | 5,254,907 | |||||||||||||||
| Dividends declared per share | $ | 2.15 | $ | 0.15 | $ | – | $ | – | $ | – | ||||||||||
Randolph Bancorp, Inc.
Average Balances/Yields
(Dollars in thousands)
(Unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||
| Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||||||||||
| Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | |||||||||||||||||||||||||||
| (Dollars in thousands) | Balance | Paid | Rate (7) | Balance | Paid | Rate (7) | Balance | Paid | Rate (7) | ||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||
| 1-4 family residential (1) | $ | 274,883 | $ | 2,400 | 3.54 | % | $ | 319,855 | $ | 2,790 | 3.46 | % | $ | 336,805 | $ | 2,974 | 3.58 | % | |||||||||||||||||
| Home equity | 57,046 | 470 | 3.34 | % | 57,183 | 480 | 3.33 | % | 48,383 | 433 | 3.63 | % | |||||||||||||||||||||||
| Commercial real estate | 197,330 | 1,921 | 3.95 | % | 186,943 | 1,880 | 3.99 | % | 146,683 | 1,406 | 3.89 | % | |||||||||||||||||||||||
| Construction | 32,734 | 296 | 3.67 | % | 34,246 | 331 | 3.83 | % | 30,350 | 295 | 3.94 | % | |||||||||||||||||||||||
| Total real estate loans | 561,993 | 5,087 | 3.67 | % | 598,227 | 5,481 | 3.63 | % | 562,221 | 5,108 | 3.68 | % | |||||||||||||||||||||||
| Commercial and industrial | 16,631 | 277 | 6.75 | % | 18,311 | 331 | 7.17 | % | 21,860 | 274 | 5.08 | % | |||||||||||||||||||||||
| Consumer | 7,617 | 103 | 5.48 | % | 8,313 | 111 | 5.30 | % | 9,940 | 126 | 5.14 | % | |||||||||||||||||||||||
| Total loans | 586,241 | 5,467 | 3.78 | % | 624,851 | 5,923 | 3.76 | % | 594,021 | 5,508 | 3.76 | % | |||||||||||||||||||||||
| Investment securities(2) (3) | 52,930 | 221 | 1.69 | % | 54,314 | 222 | 1.62 | % | 57,818 | 247 | 1.73 | % | |||||||||||||||||||||||
| Interest-earning deposits | 107,866 | 42 | 0.16 | % | 41,161 | 13 | 0.13 | % | 35,492 | 7 | 0.08 | % | |||||||||||||||||||||||
| Total interest-earning assets | 747,037 | 5,730 | 3.11 | % | 720,326 | 6,158 | 3.39 | % | 687,331 | 5,762 | 3.40 | % | |||||||||||||||||||||||
| Noninterest-earning assets | 41,939 | 43,478 | 42,045 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 788,976 | $ | 763,804 | $ | 729,376 | |||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Savings accounts | 194,120 | 72 | 0.15 | % | 191,464 | 72 | 0.15 | % | 190,313 | 98 | 0.21 | % | |||||||||||||||||||||||
| NOW accounts | 62,039 | 43 | 0.28 | % | 62,838 | 29 | 0.18 | % | 69,511 | 48 | 0.28 | % | |||||||||||||||||||||||
| Money market accounts | 93,174 | 36 | 0.16 | % | 77,140 | 36 | 0.19 | % | 75,994 | 54 | 0.29 | % | |||||||||||||||||||||||
| Term certificates | 143,320 | 164 | 0.46 | % | 135,406 | 171 | 0.50 | % | 96,978 | 238 | 1.00 | % | |||||||||||||||||||||||
| Total interest-bearing deposits | 492,653 | 315 | 0.26 | % | 466,848 | 308 | 0.26 | % | 432,796 | 438 | 0.41 | % | |||||||||||||||||||||||
| FHLBB and FRB advances | 48,333 | 147 | 1.23 | % | 53,592 | 155 | 1.15 | % | 70,857 | 232 | 1.33 | % | |||||||||||||||||||||||
| Total interest-bearing liabilities | 540,986 | 462 | 0.35 | % | 520,440 | 463 | 0.35 | % | 503,653 | 670 | 0.54 | % | |||||||||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 140,454 | 127,486 | 106,929 | ||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 11,559 | 13,305 | 15,375 | ||||||||||||||||||||||||||||||||
| Total liabilities | 692,999 | 661,231 | 625,957 | ||||||||||||||||||||||||||||||||
| Total stockholders’ equity | 95,977 | 102,573 | 103,419 | ||||||||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 788,976 | $ | 763,804 | $ | 729,376 | |||||||||||||||||||||||||||||
| Net interest income | $ | 5,268 | $ | 5,695 | $ | 5,092 | |||||||||||||||||||||||||||||
| Interest rate spread(4) | 2.76 | % | 3.04 | % | 2.86 | % | |||||||||||||||||||||||||||||
| Net interest-earning assets(5) | $ | 206,051 | $ | 199,886 | $ | 183,678 | |||||||||||||||||||||||||||||
| Net interest margin(6) | 2.86 | % | 3.14 | % | 3.00 | % | |||||||||||||||||||||||||||||
| Cost of deposits (8) | 0.20 | % | 0.21 | % | 0.33 | % | |||||||||||||||||||||||||||||
| Cost of funds (9) | 0.27 | % | 0.28 | % | 0.45 | % | |||||||||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 138.09 | % | 138.41 | % | 136.47 | % | |||||||||||||||||||||||||||||
(1) Includes nonaccruing loan balances and interest received on such loans, in addition to loans held for sale.
(2) Includes carrying value of securities classified as available-for-sale and FHLBB stock.
(3) Includes tax equivalent adjustments for municipal securities, based on a statutory tax rate of 21%, of $1,000, $1,000 and $1,000 for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.
(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.
(7) During the fourth quarter of 2021, the Company changed the yield calculation method from the “30/360” to the “Actual/Actual” method. Management believes that the “Actual/Actual” method provides a more consistent and relevant metric for yield performance comparisons.
(8) Cost of deposits represents the total interest paid on deposits, divided by total interest-bearing deposits plus total noninterest-bearing deposits.
(9) Cost of funds represents the total interest paid on liabilities, divided by total interest-bearing liabilities plus total noninterest-bearing deposits.
Randolph Bancorp, Inc.
Average Balances Trend
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | $ | 274,883 | $ | 319,855 | $ | 345,576 | $ | 319,087 | $ | 336,805 | ||||||||||
| Home equity | 57,046 | 57,183 | 53,345 | 49,789 | 48,383 | |||||||||||||||
| Commercial real estate | 197,330 | 186,943 | 174,319 | 159,423 | 146,683 | |||||||||||||||
| Construction | 32,734 | 34,246 | 32,690 | 29,902 | 30,350 | |||||||||||||||
| Total real estate loans | 561,993 | 598,227 | 605,930 | 558,201 | 562,221 | |||||||||||||||
| Commercial and industrial | 16,631 | 18,311 | 22,693 | 25,497 | 21,860 | |||||||||||||||
| Consumer | 7,617 | 8,313 | 12,820 | 9,052 | 9,940 | |||||||||||||||
| Total loans | 586,241 | 624,851 | 641,443 | 592,750 | 594,021 | |||||||||||||||
| Investment securities | 52,930 | 54,314 | 54,229 | 55,376 | 57,818 | |||||||||||||||
| Interest-earning deposits | 107,866 | 41,161 | 11,002 | 43,888 | 35,492 | |||||||||||||||
| Total interest-earning assets | 747,037 | 720,326 | 706,674 | 692,014 | 687,331 | |||||||||||||||
| Non-interest earning assets | 41,939 | 43,478 | 44,614 | 40,257 | 42,045 | |||||||||||||||
| Total assets | $ | 788,976 | $ | 763,804 | $ | 751,288 | $ | 732,271 | $ | 729,376 | ||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Savings accounts | $ | 194,120 | $ | 191,464 | $ | 189,254 | $ | 192,434 | $ | 190,313 | ||||||||||
| NOW accounts | 62,039 | 62,838 | 61,951 | 69,730 | 69,511 | |||||||||||||||
| Money market accounts | 93,174 | 77,140 | 73,662 | 72,469 | 75,994 | |||||||||||||||
| Term certificates | 143,320 | 135,406 | 113,787 | 104,604 | 96,978 | |||||||||||||||
| Total interest-bearing deposits | 492,653 | 466,848 | 438,654 | 439,237 | 432,796 | |||||||||||||||
| FHLBB and FRB advances | 48,333 | 53,592 | 64,047 | 51,502 | 70,857 | |||||||||||||||
| Total interest-bearing liabilities | 540,986 | 520,440 | 502,701 | 490,739 | 503,653 | |||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||
| Noninterest-bearing deposits | 140,454 | 127,486 | 126,165 | 124,656 | 106,929 | |||||||||||||||
| Other noninterest-bearing liabilities | 11,559 | 13,305 | 19,021 | 13,606 | 15,375 | |||||||||||||||
| Total liabilities | 692,999 | 661,231 | 647,887 | 629,001 | 625,957 | |||||||||||||||
| Total stockholders’ equity | 95,977 | 102,573 | 103,401 | 103,270 | 103,419 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 788,976 | $ | 763,804 | $ | 751,288 | $ | 732,271 | $ | 729,376 | ||||||||||
Randolph Bancorp, Inc.
Interest Earned and Paid Trend
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | $ | 2,400 | $ | 2,790 | $ | 3,021 | $ | 2,763 | $ | 2,974 | ||||||||||
| Home equity | 470 | 480 | 475 | 412 | 433 | |||||||||||||||
| Commercial real estate | 1,921 | 1,880 | 1,809 | 1,666 | 1,406 | |||||||||||||||
| Construction | 296 | 331 | 310 | 289 | 295 | |||||||||||||||
| Total real estate loans | 5,087 | 5,481 | 5,615 | 5,130 | 5,108 | |||||||||||||||
| Commercial and industrial | 277 | 331 | 493 | 266 | 274 | |||||||||||||||
| Consumer | 103 | 111 | 118 | 109 | 126 | |||||||||||||||
| Total loans | 5,467 | 5,923 | 6,226 | 5,505 | 5,508 | |||||||||||||||
| Investment securities | 221 | 222 | 224 | 230 | 247 | |||||||||||||||
| Interest-earning deposits | 42 | 13 | 4 | 8 | 7 | |||||||||||||||
| Total interest-earning assets | 5,730 | 6,158 | 6,454 | 5,743 | 5,762 | |||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Savings accounts | $ | 72 | $ | 72 | $ | 76 | $ | 89 | $ | 98 | ||||||||||
| NOW accounts | 43 | 29 | 23 | 38 | 48 | |||||||||||||||
| Money market accounts | 36 | 36 | 41 | 43 | 54 | |||||||||||||||
| Term certificates | 164 | 171 | 159 | 175 | 238 | |||||||||||||||
| Total interest-bearing deposits | 315 | 308 | 299 | 345 | 438 | |||||||||||||||
| FHLBB and FRB advances | 147 | 155 | 178 | 198 | 232 | |||||||||||||||
| Total interest-bearing liabilities | 462 | 463 | 477 | 543 | 670 | |||||||||||||||
| Net interest income | 5,268 | 5,695 | 5,977 | 5,200 | 5,092 | |||||||||||||||
Randolph Bancorp, Inc.
Average Yield Trend(1)
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans: | ||||||||||||||||||||
| 1-4 family residential | 3.54 | % | 3.46 | % | 3.47 | % | 3.47 | % | 3.58 | % | ||||||||||
| Home equity | 3.34 | % | 3.33 | % | 3.53 | % | 3.32 | % | 3.63 | % | ||||||||||
| Commercial real estate | 3.95 | % | 3.99 | % | 4.12 | % | 4.19 | % | 3.89 | % | ||||||||||
| Construction | 3.67 | % | 3.83 | % | 3.76 | % | 3.88 | % | 3.94 | % | ||||||||||
| Total real estate loans | 3.67 | % | 3.63 | % | 3.68 | % | 3.69 | % | 3.68 | % | ||||||||||
| Commercial and industrial | 6.75 | % | 7.17 | % | 8.62 | % | 4.18 | % | 5.08 | % | ||||||||||
| Consumer | 5.48 | % | 5.30 | % | 3.65 | % | 4.83 | % | 5.14 | % | ||||||||||
| Total loans | 3.78 | % | 3.76 | % | 3.85 | % | 3.73 | % | 3.76 | % | ||||||||||
| Investment securities | 1.69 | % | 1.62 | % | 1.64 | % | 1.67 | % | 1.73 | % | ||||||||||
| Interest-earning deposits | 0.16 | % | 0.13 | % | 0.14 | % | 0.07 | % | 0.08 | % | ||||||||||
| Total interest-earning assets | 3.11 | % | 3.39 | % | 3.62 | % | 3.33 | % | 3.40 | % | ||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Savings accounts | 0.15 | % | 0.15 | % | 0.16 | % | 0.19 | % | 0.21 | % | ||||||||||
| NOW accounts | 0.28 | % | 0.18 | % | 0.15 | % | 0.22 | % | 0.28 | % | ||||||||||
| Money market accounts | 0.16 | % | 0.19 | % | 0.22 | % | 0.24 | % | 0.29 | % | ||||||||||
| Term certificates | 0.46 | % | 0.50 | % | 0.55 | % | 0.67 | % | 1.00 | % | ||||||||||
| Total interest-bearing deposits | 0.26 | % | 0.26 | % | 0.27 | % | 0.32 | % | 0.41 | % | ||||||||||
| FHLBB and FRB advances | 1.23 | % | 1.15 | % | 1.10 | % | 1.54 | % | 1.33 | % | ||||||||||
| Total interest-bearing liabilities | 0.35 | % | 0.35 | % | 0.38 | % | 0.44 | % | 0.54 | % | ||||||||||
| Interest rate spread | 2.76 | % | 3.04 | % | 3.24 | % | 2.89 | % | 2.86 | % | ||||||||||
| Net interest rate margin | 2.86 | % | 3.14 | % | 3.36 | % | 3.01 | % | 3.00 | % | ||||||||||
| Cost of deposits | 0.20 | % | 0.21 | % | 0.21 | % | 0.25 | % | 0.33 | % | ||||||||||
| Cost of funds | 0.27 | % | 0.28 | % | 0.30 | % | 0.35 | % | 0.45 | % | ||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 138.09 | % | 138.41 | % | 140.58 | % | 141.01 | % | 136.47 | % | ||||||||||
(1) During the fourth quarter of 2021, the Company changed the yield calculation method from the “30/360” to the “Actual/Actual” method. Management believes that the “Actual/Actual” method provides a more consistent and relevant metric for yield performance comparisons.
Randolph Bancorp, Inc.
Rate/Volume Analysis
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||
| March 31, 2022 vs. December 31, 2021 | ||||||||||||
| Increase (Decrease) | Total | |||||||||||
| Due to Changes in | Increase | |||||||||||
| Volume | Rate | (Decrease) | ||||||||||
| Interest-earning assets: | ||||||||||||
| Loans: | ||||||||||||
| 1-4 family residential | $ | (338 | ) | $ | (52 | ) | (390 | ) | ||||
| Home equity | 3 | (13 | ) | (10 | ) | |||||||
| Commercial real estate | 68 | (27 | ) | 41 | ||||||||
| Construction | (12 | ) | (23 | ) | (35 | ) | ||||||
| Total real estate loans | (279 | ) | (115 | ) | (394 | ) | ||||||
| Commercial and industrial | (27 | ) | (27 | ) | (54 | ) | ||||||
| Consumer | (7 | ) | (1 | ) | (8 | ) | ||||||
| Total loans | (313 | ) | (143 | ) | (456 | ) | ||||||
| Investment securities | (4 | ) | 3 | (1 | ) | |||||||
| Interest-earning deposits | 17 | 12 | 29 | |||||||||
| Total interest-earning assets | (300 | ) | (128 | ) | (428 | ) | ||||||
| Interest-bearing liabilities: | ||||||||||||
| Savings accounts | – | – | – | |||||||||
| NOW accounts | – | 14 | 14 | |||||||||
| Money market accounts | 6 | (6 | ) | – | ||||||||
| Term certificates | 8 | (15 | ) | (7 | ) | |||||||
| Total interest-bearing deposits | 14 | (7 | ) | 7 | ||||||||
| FHLBB and FRB advances | (12 | ) | 4 | (8 | ) | |||||||
| Total interest-bearing liabilities | 2 | (3 | ) | (1 | ) | |||||||
| Change in net interest income | $ | (302 | ) | $ | (125 | ) | $ | (427 | ) | |||
Randolph Bancorp, Inc.
Rate/Volume Analysis
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||
| March 31, 2022 vs. 2021 | ||||||||||||
| Increase (Decrease) | Total | |||||||||||
| Due to Changes in | Increase | |||||||||||
| Volume | Rate | (Decrease) | ||||||||||
| Interest-earning assets: | ||||||||||||
| Loans: | ||||||||||||
| 1-4 family residential | $ | (488 | ) | $ | (86 | ) | (574 | ) | ||||
| Home equity | 77 | (40 | ) | 37 | ||||||||
| Commercial real estate | 447 | 68 | 515 | |||||||||
| Construction | 21 | (20 | ) | 1 | ||||||||
| Total real estate loans | 57 | (78 | ) | (21 | ) | |||||||
| Commercial and industrial | (60 | ) | 63 | 3 | ||||||||
| Consumer | (28 | ) | 5 | (23 | ) | |||||||
| Total loans | (31 | ) | (10 | ) | (41 | ) | ||||||
| Investment securities | (17 | ) | (9 | ) | (26 | ) | ||||||
| Interest-earning deposits | 5 | 30 | 35 | |||||||||
| Total interest-earning assets | (43 | ) | 11 | (32 | ) | |||||||
| Interest-bearing liabilities: | ||||||||||||
| Savings accounts | 2 | (28 | ) | (26 | ) | |||||||
| NOW accounts | (4 | ) | (1 | ) | (5 | ) | ||||||
| Money market accounts | 10 | (28 | ) | (18 | ) | |||||||
| Term certificates | 86 | (160 | ) | (74 | ) | |||||||
| Total interest-bearing deposits | 94 | (217 | ) | (123 | ) | |||||||
| FHLBB and FRB advances | (66 | ) | (19 | ) | (85 | ) | ||||||
| Total interest-bearing liabilities | 28 | (236 | ) | (208 | ) | |||||||
| Change in net interest income | $ | (71 | ) | $ | 247 | $ | 176 | |||||
Randolph Bancorp, Inc.
Quarterly Trend in Mortgage Banking Income
(Dollars in thousands)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| Gain on loan origination and sale activities, net | ||||||||||||||||||||
| Gain on sale of mortgages and realized gain from derivative financial instruments, net | $ | 3,093 | $ | 4,818 | $ | 6,339 | $ | 6,545 | $ | 15,876 | ||||||||||
| Net change in fair value of loans held for sale and portfolio loans accounted for at fair value | (1,559 | ) | (1,360 | ) | 549 | 1,091 | (3,816 | ) | ||||||||||||
| Capitalized residential mortgage loan servicing rights | 377 | 942 | 783 | 1,476 | 2,797 | |||||||||||||||
| Net change in fair value of derivative loan commitments and forward loan sale commitments | (647 | ) | (677 | ) | (442 | ) | (3,372 | ) | (3,864 | ) | ||||||||||
| Gain on loan origination and sales activities, net | $ | 1,264 | $ | 3,723 | $ | 7,229 | $ | 5,740 | $ | 10,993 | ||||||||||
| Mortgage servicing fees, net | ||||||||||||||||||||
| Residential mortgage loan servicing fees | $ | 1,277 | $ | 1,355 | $ | 1,282 | $ | 1,205 | $ | 1,170 | ||||||||||
| Amortization of residential mortgage loan servicing rights | (749 | ) | (831 | ) | (795 | ) | (759 | ) | (812 | ) | ||||||||||
| Release (provision) to the valuation allowance of mortgage loan servicing rights | 135 | 43 | 39 | (65 | ) | 421 | ||||||||||||||
| Sub-servicer expenses (1) | (315 | ) | (310 | ) | (252 | ) | – | – | ||||||||||||
| Mortgage servicing fees, net | $ | 348 | $ | 257 | $ | 274 | $ | 381 | $ | 779 | ||||||||||
| Total gain on loan origination and sales activities and mortgage servicing fees | $ | 1,612 | $ | 3,980 | $ | 7,503 | $ | 6,121 | $ | 11,772 | ||||||||||
| Principal balance of loans originated for sale | $ | 110,371 | $ | 222,644 | $ | 260,519 | $ | 309,033 | $ | 487,675 | ||||||||||
| Principal balance of loans sold | $ | 129,858 | $ | 297,316 | $ | 260,473 | $ | 342,762 | $ | 503,285 | ||||||||||
| Ending notional amount of derivative loan commitments | $ | 42,678 | $ | 85,887 | $ | 158,085 | $ | 139,748 | $ | 239,509 | ||||||||||
| Loans held for sale, at fair value | $ | 22,698 | $ | 44,766 | $ | 75,400 | $ | 74,277 | $ | 93,176 | ||||||||||
| Margin on loans sold (2) | 2.67 | % | 1.94 | % | 2.73 | % | 2.34 | % | 3.71 | % | ||||||||||
(1) Sub-servicer expenses were first incurred during the three months ended September 30, 2021, due to a conversion of the Company’s mortgage loan servicing activities. Previously, all expenses related to servicing mortgage loans serviced for others were included in non-interest expenses.
(2) Margin on loans sold is calculated as the sum of the gain on sale of mortgages and realized gain from derivative financial instruments, net, plus capitalized residential mortgage loan servicing rights divided by the principal balance of loans sold.
Randolph Bancorp, Inc.
Segment Information
(Dollars in thousands)
(Unaudited)
| For the Three Months Ended March 31, 2022 | ||||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | ||||||||||
| Net interest income | $ | 5,011 | $ | 256 | $ | 5,267 | ||||||
| Provision for loan losses | 71 | – | 71 | |||||||||
| Net interest income after provision for loan losses | 4,940 | 256 | 5,196 | |||||||||
| Non-interest income: | ||||||||||||
| Customer service fees | 355 | 10 | 365 | |||||||||
| Gain on loan origination and sale activities, net (1) | – | 1,991 | 1,991 | |||||||||
| Mortgage servicing fees, net | (205 | ) | 553 | 348 | ||||||||
| Other | 99 | 116 | 215 | |||||||||
| Total non-interest income | 249 | 2,670 | 2,919 | |||||||||
| Non-interest expenses: | ||||||||||||
| Salaries and employee benefits | 1,935 | 3,219 | 5,154 | |||||||||
| Occupancy and equipment | 512 | (147 | ) | 365 | ||||||||
| Other non-interest expenses(2) | 1,911 | 1,276 | 3,187 | |||||||||
| Total non-interest expenses | 4,358 | 4,348 | 8,706 | |||||||||
| Income (loss) before income taxes and elimination of inter-segment profit | $ | 831 | $ | (1,422 | ) | (591 | ) | |||||
| Elimination of inter-segment profit | (727 | ) | ||||||||||
| Income (loss) before income taxes | (1,318 | ) | ||||||||||
| Income tax expense (benefit) | (1,083 | ) | ||||||||||
| Net income (loss) | $ | (235 | ) | |||||||||
(1) Before elimination of inter-segment profit.
(2) Other non-interest expenses include merger expenses of $588,000. The full amount was allocated to Envision Bank.
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, 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 March 31, 2021 | ||||||||||||
| Envision Bank | Envision Mortgage | Consolidated Total | ||||||||||
| Net interest income | $ | 4,201 | $ | 890 | $ | 5,091 | ||||||
| Provision (credit) for loan losses | (213 | ) | – | (213 | ) | |||||||
| Net interest income after provision for loan losses | 4,414 | 890 | 5,304 | |||||||||
| Non-interest income: | ||||||||||||
| Customer service fees | 340 | 27 | 367 | |||||||||
| Gain on loan origination and sale activities, net (1) | – | 11,674 | 11,674 | |||||||||
| Mortgage servicing fees, net | (94 | ) | 873 | 779 | ||||||||
| Other | 151 | 133 | 284 | |||||||||
| Total non-interest income | 397 | 12,707 | 13,104 | |||||||||
| Non-interest expenses: | ||||||||||||
| Salaries and employee benefits | 1,802 | 6,635 | 8,437 | |||||||||
| Occupancy and equipment | 443 | 301 | 744 | |||||||||
| Other non-interest expenses | 1,087 | 1,683 | 2,770 | |||||||||
| Total non-interest expenses | 3,332 | 8,619 | 11,951 | |||||||||
| Income before income taxes and elimination of inter-segment profit | $ | 1,479 | $ | 4,978 | 6,457 | |||||||
| Elimination of inter-segment profit | (681 | ) | ||||||||||
| Income before income taxes | 5,776 | |||||||||||
| Income tax expense | 1,664 | |||||||||||
| Net income | $ | 4,112 | ||||||||||
(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.
Reconciliation of GAAP to Non-GAAP Net Income
(in thousands, except per share amounts)
Unaudited
| Quarter Ended | ||||||||||||||||||
| March 31, 2022 | ||||||||||||||||||
| Adjustments | Income Statement Section | Income (Loss) Before Taxes | Provision (Credit) for Income Taxes | Net Income (Loss) | Earnings (Loss) per Share (diluted) | |||||||||||||
| GAAP basis | $ | (1,318 | ) | $ | (1,083 | ) | $ | (235 | ) | $ | (0.05 | ) | ||||||
| Merger expenses(1) | Non-interest expense | 588 | – | 588 | 0.12 | |||||||||||||
| Reversal of cease use liability | Non-interest expense | (290 | ) | (89 | ) | (201 | ) | (0.04 | ) | |||||||||
| Severance expenses | Non-interest expense | 240 | 74 | 166 | 0.03 | |||||||||||||
| Non-GAAP basis | $ | (780 | ) | $ | (1,098 | ) | $ | 318 | $ | 0.06 | ||||||||
| 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 | ||||||||||
(1) Merger expenses are not tax-deductible and therefore no provision for income taxes is calculated in the table.
Randolph Bancorp, Inc.
Selected Financial Highlights
(Unaudited)
| At or for the Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| Return on average assets: (1, 5) | ||||||||||||||||||||
| GAAP | (0.12 | %) | 0.41 | % | 1.66 | % | 0.86 | % | 2.26 | % | ||||||||||
| Non-GAAP (2) | 0.16 | % | 0.44 | % | 1.79 | % | 0.96 | % | 2.30 | % | ||||||||||
| Return on average equity: (1, 6) | ||||||||||||||||||||
| GAAP | (0.98 | %) | 3.07 | % | 12.09 | % | 6.11 | % | 15.90 | % | ||||||||||
| Non-GAAP (2) | 1.33 | % | 3.29 | % | 13.00 | % | 6.79 | % | 16.21 | % | ||||||||||
| Net interest margin (10) | 2.86 | % | 3.14 | % | 3.36 | % | 3.01 | % | 3.00 | % | ||||||||||
| Non-interest income to total income: | ||||||||||||||||||||
| GAAP | 29.39 | % | 44.33 | % | 57.69 | % | 56.73 | % | 70.93 | % | ||||||||||
| Non-GAAP (2) | 29.39 | % | 44.63 | % | 57.69 | % | 56.83 | % | 70.93 | % | ||||||||||
| Profit percentage (9) | ||||||||||||||||||||
| GAAP | (16.72 | %) | 9.85 | % | 30.20 | % | 11.55 | % | 31.76 | % | ||||||||||
| Non-GAAP (2) | (9.51 | %) | 10.59 | % | 32.53 | % | 13.56 | % | 32.39 | % | ||||||||||
| Efficiency ratio: (7) | ||||||||||||||||||||
| GAAP | 116.72 | % | 90.15 | % | 69.80 | % | 88.45 | % | 68.24 | % | ||||||||||
| Non-GAAP (2) | 109.51 | % | 89.41 | % | 67.47 | % | 86.44 | % | 67.61 | % | ||||||||||
| Tier 1 capital to average assets (3) | 11.47 | % | 13.23 | % | 13.38 | % | 13.72 | % | 13.81 | % | ||||||||||
| Non-performing assets as a percentage of total assets (4) | 0.37 | % | 0.33 | % | 0.20 | % | 0.86 | % | 1.14 | % | ||||||||||
| Allowance for loan losses as a percentage of total loans (4) | 1.09 | % | 1.14 | % | 1.13 | % | 1.19 | % | 1.32 | % | ||||||||||
| Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4) | 1.09 | % | 1.15 | % | 1.14 | % | 1.22 | % | 1.36 | % | ||||||||||
| Allowance for loan losses as a percentage of non-performing assets | 237.17 | % | 239.67 | % | 427.66 | % | 101.89 | % | 78.99 | % | ||||||||||
| Allowance for loan losses as a percentage of non-performing loans | 237.17 | % | 239.67 | % | 427.66 | % | 101.89 | % | 77.75 | % | ||||||||||
| Tangible book value per share (8) | $ | 17.07 | $ | 19.73 | $ | 19.71 | $ | 19.16 | $ | 18.80 | ||||||||||
| Outstanding shares | 5,180,670 | 5,113,825 | 5,103,619 | 5,254,522 | 5,364,240 | |||||||||||||||
(1) Annualized for quarterly periods presented.
(2) See page 20 – 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.
(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 $22,000, $24,000, $26,000, $28,000, and $31,000 at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021, and March 31, 2021, 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.
For More Information, Contact:
William M. Parent, President and Chief
Executive Officer (617-925-1955)
