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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

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

October 22, 2019 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Average Balance and Yields For the Three Months Ended September30, ------------------------------------------------------------ 2019 2018 ---------------------------- ---------------------------- Average Interest Averag Average Interest Averag e e Outstandin Earned/ Yield/ Outstandin Earned/ Yield/ g g (Dollars in thousands) Balance Paid Rate Balance Paid Rate --------- ------- ----- --------- ------- ----- Interest-earning assets: Loans (1) $ 573,899 $ 6,144 4.28 % $ 481,732 $ 5,036 4.18 % Investment securities(2) (3) 53,947 377 2.80 % 58,864 410 2.79 % Interest-earning deposits 4,881 23 1.88 % 5,201 27 2.08 % - ------- - ----- - ------- - ----- Total interest-earning assets 632,727 6,544 4.14 % 545,797 5,473 4.01 % - ----- - ----- Noninterest-earning assets 14,757 27,994 - ------- - ------- Total assets $ 647,484 $ 573,791 - ------- - ------- Interest-bearing liabilities: Savings accounts 107,764 149 0.55 % 102,712 46 0.18 % NOW accounts 38,697 47 0.49 % 42,312 52 0.49 % Money market accounts 64,058 251 1.57 % 61,384 190 1.24 % Term certificates 182,073 918 2.02 % 153,239 577 1.51 % - ------- - ----- - ------- - ----- Total interest-bearing deposits 392,592 1,365 1.39 % 359,647 865 0.96 % FHLBB advances 101,933 603 2.37 % 65,247 343 2.10 % - ------- - ----- - ------- - ----- Total interest-bearing liabilities 494,525 1,968 1.59 % 424,894 1,208 1.14 % - ------- - ----- - ------- - ----- Noninterest-bearing liabilities: Noninterest-bearing deposits 62,456 63,396 Other noninterest-bearing liabilities 10,138 6,231 - ------- - ------- Total liabilities 567,119 494,521 Total stockholders’ equity 80,365 79,270 - ------- - ------- Total liabilities and stockholders’ equity $ 647,484 $ 573,791 - ------- - ------- Net interest income $ 4,576 $ 4,265 - ----- - ----- Interest rate spread(4) 2.55 % 2.87 % Net interest-earning assets(5) $ 138,202 $ 120,903 - ------- - ------- Net interest margin(6) 2.89 % 3.13 % Ratio of interest-earning assets to 127.95 % 128.45 % interest-bearing liabilities - ------- - -------

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

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

Average Balance and Yields For the Nine Months Ended September30, -------------------------------------------------------------- 2019 2018 ----------------------------- ----------------------------- Average Interest Averag Average Interest Averag e e Outstandin Earned/ Yield/ Outstandin Earned/ Yield/ g g (Dollars in thousands) Balance Paid Rate Balance Paid Rate --------- -------- ----- --------- -------- ----- Interest-earning assets: Loans (1) $ 549,665 $ 17,791 4.32 % $ 453,290 $ 13,917 4.09 % Investment securities(2) (3) 54,350 1,154 2.83 % 60,225 1,254 2.78 % Interest-earning deposits 5,132 77 2.00 % 7,442 91 1.63 % - ------- - ------ - ------- - ------ Total interest-earning assets 609,147 19,022 4.16 % 520,957 15,262 3.91 % - ------ - ------ Noninterest-earning assets 21,228 28,997 - ------- - ------- Total assets $ 630,375 $ 549,954 - ------- - ------- Interest-bearing liabilities: Savings accounts 104,530 337 0.43 % 103,774 133 0.17 % NOW accounts 39,466 144 0.49 % 43,215 166 0.51 % Money market accounts 65,609 712 1.45 % 66,241 461 0.93 % Term certificates 171,827 2,552 1.98 % 126,452 1,314 1.39 % - ------- - ------ - ------- - ------ Total interest-bearing deposits 381,432 3,745 1.31 % 339,682 2,074 0.81 % FHLBB advances 98,817 1,825 2.46 % 63,089 884 1.87 % - ------- - ------ - ------- - ------ Total interest-bearing liabilities 480,249 5,570 1.55 % 402,771 2,958 0.98 % - ------- - ------ - ------- - ------ Noninterest-bearing liabilities: Noninterest-bearing deposits 62,194 61,005 Other noninterest-bearing liabilities 8,681 6,110 - ------- - ------- Total liabilities 551,124 469,886 Total stockholders’ equity 79,251 80,068 - ------- - ------- Total liabilities and stockholders’ equity $ 630,375 $ 549,954 - ------- - ------- Net interest income $ 13,452 $ 12,304 - ------ - ------ Interest rate spread(4) 2.61 % 2.93 % Net interest-earning assets(5) $ 128,898 $ 118,186 - ------- - ------- Net interest margin(6) 2.94 % 3.15 % Ratio of interest-earning assets to 126.84 % 129.34 % interest-bearing liabilities - ------- - -------

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

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

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

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

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

(1) Before elimination of inter-segment profit

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

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

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

(1) Before elimination of inter-segment profit

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

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

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

(1) Before elimination of inter-segment profit

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

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

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

(1) Before elimination of inter-segment profit

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

Randolph Bancorp, Inc. Selected Financial Highlights(Unaudited)

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

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

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