RNDB Randolph Bancorp Inc

Randolph Bancorp, Inc. (the “Company”) (NASDAQ Global Market: RNDB), the holding company for Envision Bank (the “Bank”), today announced net income of $1.6 million, or $0.32 per basic share and $0.31 per diluted share, for the three months ended June 30, 2021 compared to net income of $4.1 million, or $0.81 per basic and $0.78 per diluted share, for the three months ended March 31, 2021 and net income of $5.2 million, or $1.02 per basic and diluted share, for the three months ended June 30, 2020. Excluding one-time events of $145,000 in severance expenses, $71,000 in other outsourcing expenses, and $29,000 in losses on disposals of fixed assets, earnings were $1.8 million, or $0.34 per diluted share, for the three months ended June 30, 2021. Excluding one-time charges of $109,000 in severance expenses, earnings were $4.2 million, or $0.79 per diluted share, for the three months ended March 31, 2021. Excluding $189,000 of operating expenses related to addressing the COVID-19 pandemic, net income for the three months ended June 30, 2020 was $5.4 million, or $1.06 per diluted share.

For the six months ended June 30, 2021, net income was $5.7 million, or $1.10 per diluted share, compared to net income of $4.4 million, or $0.86 per diluted share, for the six months ended June 30, 2020. Net income on a non-GAAP basis, excluding certain nonrecurring items, was $5.9 million, or $1.15 per diluted share, for the six months ended June 30, 2021, compared to net income on a non-GAAP basis, excluding other certain nonrecurring items, of $6.0 million, or $1.17 per diluted share, for the six months ended June 30, 2020.

At June 30, 2021, total assets amounted to $744.1 million, compared to $738.2 million at March 31, 2021, an increase of $6.0 million, or 0.8%. Total loans increased by $48.6 million, or 9.8%, to $546.4 million at June 30, 2021 from $497.8 million at March 31, 2021, whereas loans held for sale decreased by $18.9 million to $74.3 million at June 30, 2021 from $93.2 million at March 31, 2021. Compared to June 30, 2020, total assets grew $20.1 million, or 2.8% from $724.0 million. The growth from the prior year period was driven by an increase in total loans of $50.4 million, or 10.2%, and an increase in loans held for sale of $12.6 million, partially offset by a decrease in cash and cash equivalents of $41.1 million.

William M. Parent, President and Chief Executive Officer, stated, “The second quarter was a positive quarter for our Company as we continued to see progress along our operating path. Strong loan growth, higher net interest margin, net interest income growth and improved credit metrics all reflect building momentum. The earnings decline from prior quarters reflects the normalization of the mortgage market as declining refinancing volume and compressed margins resulted in significantly lower overall originations and related income. We continue to work diligently to right size our operations to reflect market conditions but there will be a lagging period before our overall operating leverage initiatives are realized. We are pleased with the developments post re-opening of our local market and remain optimistic that we can continue to grow our business and generate recurring operating leverage.”

Second Quarter Operating ResultsNet interest income increased by $108,000, or 2.1%, to $5.2 million for the three months ended June 30, 2021 from $5.1 million for the three months ended March 31, 2021. This increase was primarily due to a decrease in the cost of term certificates and a decrease in the volume of Federal Home Loan Bank of Boston (“FHLBB”) advances from the prior quarter. The average cost of certificates of deposit decreased by 31 basis points from the prior quarter, and the average balance of FHLBB advances decreased $19.4 million, or 27.3%, from the prior quarter. This contributed to a decrease of 9 basis points in the cost of interest-bearing liabilities in the second quarter of 2021. The improvement in the cost of funding was partially offset by a decrease in the average yield earned on interest-earning assets of 3 basis points, driven by declines in the volume of and yield on investment securities. Accordingly, the net interest margin increased by 4 basis points, to 3.00% in the second quarter from 2.96% in the first quarter.

Net interest income increased by $466,000, or 9.8%, to $5.2 million for the three months ended June 30, 2021 from $4.7 million in the same period in the prior year. Relative to the prior year quarter, the net interest margin increased by 12 basis points to 3.00%, from 2.88%. The improvement reflects the shortening and downward pricing of deposit liabilities, which exceeded the decrease in rates earned on interest-earning assets in the lower interest rate environment. The cost of interest-bearing liabilities decreased by 59 basis points, whereas the yield on interest-earning assets declined by 36 basis points between periods.

The Company recognized a credit for loan losses of $27,000 for the quarter ended June 30, 2021, driven by changes in the qualitative factors related to the impact of the COVID-19 pandemic and the economic outlook used in the Company’s calculation, along with improvements in credit quality trends, which were partially offset by total loan growth of $48.6 million from the prior quarter. The allowance for loan losses was 1.19%, 1.32% and 1.22% of total loans at June 30, 2021, March 31, 2021 and June 30, 2020, respectively, and was 101.9%, 79.0% and 179.3% of non-performing assets at June 30, 2021, March 31, 2021 and June 30, 2020, respectively.

Non-interest income decreased $5.6 million, or 45.1%, to $6.8 million for the quarter ended June 30, 2021 from $12.4 million in the quarter ended March 31, 2021, due to a decrease of $5.3 million in the net gain on loan origination and sale activities, in addition to a decrease in net mortgage servicing fees of $398,000. Sold mortgages totaled $342.8 million in the second quarter of 2021, compared to $503.3 million in the first quarter of 2021. The second quarter of 2021 ended with a mortgage pipeline of $139.7 million, compared to a pipeline of $239.5 million at the end of the first quarter of 2021, contributing to the decrease in the net gain on loan origination and sales activities. Mortgage servicing fees decreased $398,000, or 51.1%, to $381,000 for the second quarter of 2021 from $779,000 in the first quarter of 2021 due to a positive fair value adjustment of $421,000 in the first quarter of 2021, based on an increase in mortgage interest rates from the end of 2020, and an impairment charge of $65,000 taken in the second quarter of 2021, as mortgage interest rates declined slightly from the prior quarter.

Non-interest income decreased $6.7 million, or 49.5%, to $6.8 million for the quarter ended June 30, 2021 from $13.5 million for the quarter ended June 30, 2020, principally due to a decrease of $8.6 million in the net gain on loan origination and sale activities, partially offset by an increase of $1.7 million in net mortgage servicing fees. Sold mortgage loans totaled $342.8 million in the second quarter of 2021, compared to sold mortgage loans of $442.9 million during the second quarter of 2020. The second quarter of 2021 ended with a mortgage pipeline of $139.7 million, compared to a pipeline of $329.3 million at the end of the second quarter of 2020. Mortgage servicing fees increased $1.7 million in the quarter ended June 30, 2021, principally due to an impairment of mortgage servicing rights of $1.5 million in the quarter ended June 30, 2020.

Non-interest expenses decreased $1.3 million, or 11.1%, to $10.6 million in the quarter ended June 30, 2021 from $12.0 million in the quarter ended March 31, 2021. The decrease was due to a decrease in salaries and employee benefits expense of $1.1 million, or 13.4%, primarily driven by lower commissions paid on mortgage originations and a decrease in professional fees of $238,000 or 42.4% from the prior quarter. Occupancy and equipment expenses decreased $123,000 in the quarter ended June 30, 2021 from the prior quarter due to the closing of residential lending offices.

Non-interest expenses decreased $752,000 to $10.6 million in the quarter ended June 30, 2021 from $11.4 million in the quarter ended June 30, 2020. The decrease is principally due to a decrease in salaries and employee benefits of $1.1 million, primarily attributed to lower commissions and incentives associated with a normalization of residential loan production, partially offset by a $401,000 increase in other non-interest expenses, which included an increase in the provision for unfunded commitments, driven by growth in unfunded commercial real estate and commercial construction commitments as of June 30, 2021.

The income tax benefit was $162,000 for the three months ended June 30, 2021 compared to income tax expense of $1.7 million and $594,000 for the three months ended March 31, 2021 and June 30, 2020, respectively. During the three months ended June 30, 2021, the Company reversed a valuation allowance on its charitable contribution carryforwards totaling $531,000. The remaining income tax expense for 2021 is expected to reflect an effective tax rate of 28.5%.

Year-to-Date Operating ResultsNet interest income increased by $1.1 million, or 12.4%, for the six months ended June 30, 2021 compared to the same period in the prior year. The change reflects the shortening and downward pricing of deposit liabilities, exceeding the decreases in the rates earned on interest-earning assets because of the lower interest-rate environment. In addition, the composition of our deposit base improved as the average balance of savings and NOW accounts for the six months ended June 30, 2021 increased $44.7 million, or 30.5%, and $26.8 million, or 62.6%, respectively, from the six months ended June 30, 2020, while the average balance of our term certificates decreased $73.1 million, or 42.0%, from the prior year. The activity resulted in a 69 basis point decrease in the cost of interest-bearing liabilities.

The Company recognized a credit for loan losses of $240,000 for the six months ended June 30, 2021 compared to a provision of $1.8 million in the prior year period. At June 30, 2021, improvements to qualitative factors related to the impact of the COVID-19 pandemic, the economic outlook, and credit quality trends all helped to generate the credit for loan losses, partially offset by provisions for loan growth.

Non-interest income decreased $712,000, or 3.6%, to $19.2 million for the six months ended June 30, 2021 from $20.0 million in the six months ended June 30, 2020, principally due to a decrease of $4.8 million in the net gain on loan origination and sale activities. Mortgage loans sold were $846.0 million in the first half of 2021, compared to $657.9 million in the first half of 2020. Net gain on loan origination and sale activities decreased, while mortgage loans sold increased compared to the prior year quarter, as a result of both shrinking loan sale margins and the impact of a decreasing mortgage banking pipeline during the six months ended June 30, 2021 compared to an increasing mortgage banking pipeline during the six months ended June 30, 2020. Mortgage servicing fees increased $3.8 million in the first half of 2021 to $1.2 million from a loss of $2.6 million in the first half of 2020, due to positive fair value adjustments of $356,000 in the first half of 2021 and impairment charges of $3.1 million in the first half of 2020.

Non-interest expenses increased $240,000, or 1.1%, to $22.6 million for the six months ended June 30, 2021 from $22.3 million for the six months ended June 30, 2020. Non-interest expenses in the first half of 2020 included one-time charges of $1,375,000 related to the retirement of senior executives as well as $207,000 of COVID-19 pandemic-related expenses. Increases to non-interest expenses during the six months ended June 30, 2021 related to higher recurring salaries and benefits and other non-interest expenses related to increased mortgage loan production, professional fees associated with the outsourcing of the Company’s residential loan servicing functions, and an increase in the provision for unfunded commitments related to new commercial real estate and commercial construction commitments. Occupancy and equipment expenses decreased $172,000 in the first half of 2021 over the prior year period, partly as a result of decreased rental expenses due to the closures of residential lending offices, in addition to the absence of significant COVID-19 pandemic spending on cleaning and supplies.

Income tax expenses increased to $1.5 million for the six months ended June 30, 2021 from $605,000 for the six months ended June 30, 2020. The current period included a reversal of a charitable contribution carryforward valuation allowance, and the prior period included the utilization of net operating loss carryforwards.

Balance SheetAt June 30, 2021, total assets amounted to $744.1 million, compared to $738.2 million at March 31, 2021, an increase of $6.0 million, or 0.8%. A $48.7 million increase in net loans from the prior quarter was partially offset by a $20.1 million decrease in cash and cash equivalents and an $18.9 million decrease in loans held for sale. Net loan growth of 9.9% was driven by 1-4 family residential real estate growth of $24.8 million and commercial real estate growth of $20.8 million. Deposits increased by $11.7 million in the quarter, including an increase of $6.1 million in non-interest bearing deposits. In addition, the Company reduced borrowings by $10 million in the quarter.

Total assets at June 30, 2021 increased $20.1 million, or 2.8% from $724.0 million at June 30, 2020. Contributing to asset growth was a $49.7 million increase in net loans to $540.7 million at June 30, 2021 from $490.9 million at June 30, 2020. Cash and cash equivalents decreased by $41.1 million, or 54.1%, to $34.9 million at June 30, 2021 from $76.0 million at June 30, 2020, mainly to fund growth in net loans as well as loans held for sale. Commercial real estate loans increased by $32.9 million, or 24.4%, as we focus on diversifying our loan mix. The increase in total assets from the prior year quarter was also funded by continued deposit growth. Retail deposits totaled $514.9 million at June 30, 2021, increasing by $31.9 million, or 6.6%, from $483.0 million at June 30, 2020. Driving the growth in retail deposits was customers’ receipt of government stimulus and our focus on deposit gathering. FHLBB advances decreased by $21.9 million to $50.0 million at June 30, 2021, from $71.9 million at June 30, 2020. Federal Reserve Bank advances decreased by $15.0 million between periods.

Total stockholders’ equity was $100.7 million at June 30, 2021 compared to $100.9 million at March 31, 2021. The decrease of $149,000 reflects share repurchases during the period of $2.2 million, partially offset by net income of $1.6 million and an increase in the fair value of available-for-sale securities, net of taxes, of $97,000.

Total stockholders’ equity was $100.7 million at June 30, 2021 compared to $84.5 million at June 30, 2020. The increase of $16.2 million relates mainly to net income from the previous twelve months of $21.2 million, partially offset by share repurchases of $5.4 million and a decrease in the fair value of available-for-sale securities, net of taxes, of $879,000.

COVID-19 ImpactIn response to the impact of the COVID-19 pandemic on our customers and our business, the Company implemented a series of measures through the date of this release, including participation in the Small Business Administration’s (“SBA’s”) Paycheck Protection Program (“PPP”), for which we funded $26.2 million of SBA PPP Loans through June 30, 2021, and granting payment deferrals for residential mortgage, home equity and certain commercial borrowers who were current in their payments at the time the deferral was requested. Depending on the circumstances of the borrowers, the forbearance calls for a reduced or full deferral of payment. Please refer to the Loan Payment Deferrals and COVID-19 Highly Impacted Sectors for statistics on loan payment deferrals and the commercial loan sectors we believe could be exposed to the economic impact of the COVID-19 pandemic.

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

Forward Looking 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 negative impacts and disruptions of 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 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 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, the efficiency ratio, profit percentage, tangible book value per share, non-interest income to total income and, where applicable, as adjusted for non-recurring items. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of on-going business activities, and to enhance comparability with peers across the financial services sector.

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

													% Change
	June 30,				March 31,				June 30,				Jun 2021 vs.			Jun 2021 vs.
		2021				2021				2020			Mar 2021			Jun 2020
Assets
Cash and cash equivalents	$	34,876			$	54,950			$	76,003			(36.5	)%			(54.1	)%
Certificates of deposit		-				-				490			-	%			(100.0	)%
Securities available for sale, at fair value		50,212				54,148				54,462			(7.3	)%			(7.8	)%
Loans held for sale, at fair value		74,277				93,176				61,673			(20.3	)%			20.4	%
Loans:
1-4 family residential		263,992				239,190				246,236			10.4	%			7.2	%
Home equity		50,555				49,073				43,493			3.0	%			16.2	%
Commercial real estate		167,691				146,930				134,750			14.1	%			24.4	%
Construction		29,140				29,975				35,181			(2.8	)%			(17.2	)%
Total real estate loans		511,378				465,168				459,660			9.9	%			11.3	%
Commercial and industrial		25,826				23,869				22,940			8.2	%			12.6	%
Consumer		9,194				8,724				13,435			5.4	%			(31.6	)%
Total loans		546,398				497,761				496,035			9.8	%			10.2	%
Allowance for loan losses		(6,523	)			(6,563	)			(6,059	)		(0.6	)%			7.7	%
Net deferred loan costs and fees, and purchase premiums		785				785				962			0.0	%			(18.4	)%
Loans, net		540,660				491,983				490,938			9.9	%			10.1	%
Federal Home Loan Bank of Boston stock, at cost		2,855				3,576				4,072			(20.2	)%			(29.9	)%
Accrued interest receivable		1,523				1,501				1,760			1.5	%			(13.5	)%
Mortgage servicing rights, net		15,375				14,744				8,094			4.3	%			90.0	%
Premises and equipment, net		5,115				4,709				5,313			8.6	%			(3.7	)%
Bank-owned life insurance		8,703				8,662				8,532			0.5	%			2.0	%
Foreclosed real estate, net		-				132				132			(100.0	)%			(100.0	)%
Other assets		10,546				10,607				12,572			(0.6	)%			(16.1	)%
Total assets	$	744,142			$	738,188			$	724,041			0.8	%			2.8	%
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	124,683			$	118,623			$	89,014			5.1	%			40.1	%
Savings accounts		190,584				192,712				165,234			(1.1	)%			15.3	%
NOW accounts		51,059				62,772				48,014			(18.7	)%			6.3	%
Money market accounts		73,967				78,236				75,827			(5.5	)%			(2.5	)%
Term certificates		74,631				75,690				104,905			(1.4	)%			(28.9	)%
Interest bearing brokered		57,059				32,225				55,972			77.1	%			1.9	%
Total deposits		571,983				560,258				538,966			2.1	%			6.1	%
Federal Reserve Bank advances		-				-				15,010			-	%			(100.0	)%
Federal Home Loan Bank of Boston advances		50,016				60,024				71,944			(16.7	)%			(30.5	)%
Mortgagors' escrow accounts		1,783				1,924				1,824			(7.3	)%			(2.2	)%
Post-employment benefit obligations		2,226				2,235				2,319			(0.4	)%			(4.0	)%
Other liabilities		17,424				12,888				9,449			35.2	%			84.4	%
Total liabilities		643,432				637,329				639,512			1.0	%			0.6	%
Stockholders' Equity:
Common stock		52				53				55			(1.9	)%			(5.5	)%
Additional paid-in capital		46,740				48,613				51,013			(3.9	)%			(8.4	)%
Retained earnings		57,378				55,801				36,130			2.8	%			58.8	%
ESOP-Unearned compensation		(3,662	)			(3,709	)			(3,850	)		(1.3	)%			(4.9	)%
Accumulated other comprehensive income, net of tax		202				101				1,181			100.0	%			(82.9	)%
Total stockholders' equity		100,710				100,859				84,529			(0.1	)%			19.1	%
Total liabilities and stockholders' equity	$	744,142			$	738,188			$	724,041			0.8	%			2.8	%

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

	June 30,				March 31,				December 31,				September 30,				June 30,
		2021				2021				2020				2020				2020
Assets
Cash and cash equivalents	$	34,876			$	54,950			$	13,774			$	49,091			$	76,003
Certificates of deposit		-				-				-				-				490
Securities available for sale, at fair value		50,212				54,148				55,366				55,551				54,462
Loans held for sale, at fair value		74,277				93,176				119,112				87,805				61,673
Loans:
1-4 family residential		263,992				239,190				235,648				235,955				246,236
Home equity		50,555				49,073				48,166				48,097				43,493
Commercial real estate		167,691				146,930				143,893				141,862				134,750
Construction		29,140				29,975				31,050				32,064				35,181
Total real estate loans		511,378				465,168				458,757				457,978				459,660
Commercial and industrial		25,826				23,869				20,259				20,388				22,940
Consumer		9,194				8,724				10,289				11,696				13,435
Total loans		546,398				497,761				489,305				490,062				496,035
Allowance for loan losses		(6,523	)			(6,563	)			(6,784	)			(6,597	)			(6,059	)
Net deferred loan costs and fees, and purchase premiums		785				785				1,123				1,083				962
Loans, net		540,660				491,983				483,644				484,548				490,938
Federal Home Loan Bank of Boston stock, at cost		2,855				3,576				3,576				3,797				4,072
Accrued interest receivable		1,523				1,501				1,562				1,654				1,760
Mortgage servicing rights, net		15,375				14,744				12,377				10,944				8,094
Premises and equipment, net		5,115				4,709				4,781				5,133				5,313
Bank-owned life insurance		8,703				8,662				8,622				8,577				8,532
Foreclosed real estate, net		-				132				132				132				132
Other assets		10,546				10,607				18,126				15,736				12,572
Total assets	$	744,142			$	738,188			$	721,072			$	722,968			$	724,041
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	124,683			$	118,623			$	96,731			$	93,352			$	89,014
Savings accounts		190,584				192,712				185,481				175,316				165,234
NOW accounts		51,059				62,772				53,530				47,032				48,014
Money market accounts		73,967				78,236				77,393				74,874				75,827
Term certificates		74,631				75,690				83,444				94,438				104,905
Interest bearing brokered		57,059				32,225				31,728				37,273				55,972
Total deposits		571,983				560,258				528,307				522,285				538,966
Federal Reserve Bank advances		-				-				11,431				15,318				15,010
Federal Home Loan Bank of Boston advances		50,016				60,024				61,895				66,903				71,944
Mortgagors' escrow accounts		1,783				1,924				2,338				1,959				1,824
Post-employment benefit obligations		2,226				2,235				2,382				2,289				2,319
Other liabilities		17,424				12,888				14,900				19,276				9,449
Total liabilities		643,432				637,329				621,253				628,030				639,512
Stockholders' Equity:
Common stock		52				53				54				55				55
Additional paid-in capital		46,740				48,613				50,937				51,201				51,013
Retained earnings		57,378				55,801				51,689				46,415				36,130
ESOP-Unearned compensation		(3,662	)			(3,709	)			(3,756	)			(3,803	)			(3,850	)
Accumulated other comprehensive income, net of tax		202				101				895				1,070				1,181
Total stockholders' equity		100,710				100,859				99,819				94,938				84,529
Total liabilities and stockholders' equity	$	744,142			$	738,188			$	721,072			$	722,968			$	724,041

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

	Three Months Ended												% Change
	June 30,				March 31,				June 30,				Jun 2021 vs.			Jun 2021 vs.
	2021				2021				2020				Mar 2021			Jun 2020
Interest and dividend income:
Loans	$	5,505			$	5,508			$	5,723			(0.1	)%			(3.8	)%
Other interest and dividend income		237				253				336			(6.3	)%			(29.5	)%
Total interest and dividend income		5,742				5,761				6,059			(0.3	)%			(5.2	)%
Interest expense		543				670				1,326			(19.0	)%			(59.0	)%
Net interest income		5,199				5,091				4,733			2.1	%			9.8	%
Provision (credit) for loan losses		(27	)			(213	)			1,068			(87.3	)%			(102.5	)%
Net interest income after provision (credit) for loan losses		5,226				5,304				3,665			(1.5	)%			42.6	%
Non-interest income:
Customer service fees		419				367				266			14.2	%			57.5	%
Gain on loan origination and sale activities, net		5,740				10,993				14,370			(47.8	)%			(60.1	)%
Mortgage servicing fees, net		381				779				(1,354	)		(51.1	)%			(128.1	)%
Other		276				284				217			(2.8	)%			27.2	%
Total non-interest income		6,816				12,423				13,499			(45.1	)%			(49.5	)%
Non-interest expenses:
Salaries and employee benefits		7,310				8,437				8,402			(13.4	)%			(13.0	)%
Occupancy and equipment		621				744				838			(16.5	)%			(25.9	)%
Professional fees		323				561				230			(42.4	)%			40.4	%
Marketing		200				170				152			17.6	%			31.6	%
FDIC insurance		54				54				39			0.0	%			38.5	%
Other non-interest expenses		2,119				1,985				1,718			6.8	%			23.3	%
Total non-interest expenses		10,627				11,951				11,379			(11.1	)%			(6.6	)%
Income before income taxes		1,415				5,776				5,785			(75.5	)%			(75.5	)%
Income tax expense (benefit)		(162	)			1,664				594			(109.7	)%			(127.3	)%
Net income	$	1,577			$	4,112			$	5,191			(61.6	)%			(69.6	)%
Net income per share:
Basic	$	0.32			$	0.81			$	1.02
Diluted	$	0.31			$	0.78			$	1.02
Weighted average shares outstanding:
Basic		4,921,182				5,056,165				5,092,490
Diluted		5,135,582				5,254,907				5,092,490

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

	Year to Date								% Change
	June 30,				June 30,				Jun 2021 vs.
	2021				2020				Jun 2020
Interest and dividend income:
Loans	$	11,013			$	11,343			(2.9	)%
Other interest and dividend income		490				769			(36.3	)%
Total interest and dividend income		11,503				12,112			(5.0	)%
Interest expense		1,213				2,955			(59.0	)%
Net interest income		10,290				9,157			12.4	%
Provision (credit) for loan losses		(240	)			1,792			(113.4	)%
Net interest income after provision (credit) for loan losses		10,530				7,365			43.0	%
Non-interest income:
Customer service fees		786				573			37.2	%
Gain on loan origination and sale activities, net		16,733				21,514			(22.2	)%
Mortgage servicing fees, net		1,160				(2,608	)		(144.5	)%
Other		560				472			18.6	%
Total non-interest income		19,239				19,951			(3.6	)%
Non-interest expenses:
Salaries and employee benefits		15,747				16,527			(4.7	)%
Occupancy and equipment		1,365				1,537			(11.2	)%
Professional fees		884				635			39.2	%
Marketing		370				304			21.7	%
FDIC insurance		108				96			12.5	%
Other non-interest expenses		4,104				3,239			26.7	%
Total non-interest expenses		22,578				22,338			1.1	%
Income before income taxes		7,191				4,978			44.5	%
Income tax expense		1,502				605			148.3	%
Net income	$	5,689			$	4,373			30.1	%
Net income per share:
Basic	$	1.14			$	0.86
Diluted	$	1.10			$	0.86
Weighted average shares outstanding:
Basic		4,988,283				5,107,700
Diluted		5,193,643				5,107,700

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

	Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2021				2020				2020				2020
Interest and dividend income:
Loans	$	5,505			$	5,508			$	5,532			$	5,337			$	5,723
Other interest and dividend income		237				253				296				311				336
Total interest and dividend income		5,742				5,761				5,828				5,648				6,059
Interest expense		543				670				788				979				1,326
Net interest income		5,199				5,091				5,040				4,669				4,733
Provision (credit) for loan losses		(27	)			(213	)			215				546				1,068
Net interest income after provision (credit) for loan losses		5,226				5,304				4,825				4,123				3,665
Non-interest income:
Customer service fees		419				367				381				330				266
Gain on loan origination and sale activities, net		5,740				10,993				14,620				18,102				14,370
Mortgage servicing fees, net		381				779				275				1,180				(1,354	)
Other		276				284				311				262				217
Total non-interest income		6,816				12,423				15,587				19,874				13,499
Non-interest expenses:
Salaries and employee benefits		7,310				8,437				8,722				7,911				8,402
Occupancy and equipment		621				744				1,150				859				838
Professional fees		323				561				389				253				230
Marketing		200				170				231				154				152
FDIC insurance		54				54				51				41				39
Other non-interest expenses		2,119				1,985				2,384				1,833				1,718
Total non-interest expenses		10,627				11,951				12,927				11,051				11,379
Income before income taxes		1,415				5,776				7,485				12,946				5,785
Income tax expense (benefit)		(162	)			1,664				2,211				2,661				594
Net income	$	1,577			$	4,112			$	5,274			$	10,285			$	5,191
Net income per share:
Basic	$	0.32			$	0.81			$	1.03			$	2.01			$	1.02
Diluted	$	0.31			$	0.78			$	1.01			$	2.01			$	1.02
Weighted average shares outstanding:
Basic		4,921,182				5,056,165				5,135,069				5,120,367				5,092,490
Diluted		5,135,582				5,254,907				5,244,414				5,120,367				5,092,490

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

	Three Months Ended
	June 30, 2021										March 31, 2021										June 30, 2020
	Average				Interest			Average			Average				Interest			Average			Average				Interest			Average
	Outstanding				Earned/			Yield/			Outstanding				Earned/			Yield/			Outstanding				Earned/			Yield/
(Dollars in thousands)	Balance				Paid			Rate			Balance				Paid			Rate			Balance				Paid			Rate
Interest-earning assets:
Loans (1)	$	592,750			$	5,505		3.71	%		$	594,021			$	5,508		3.71	%		$	576,964			$	5,723		3.97	%
Investment securities(2) (3)		55,376				229		1.65	%			57,818				247		1.71	%			58,119				332		2.28	%
Interest-earning deposits		43,888				8		0.07	%			35,492				7		0.08	%			22,918				5		0.09	%
Total interest-earning assets		692,014				5,742		3.32	%			687,331				5,762		3.35	%			658,001				6,060		3.68	%
Noninterest-earning assets		40,257										42,045										40,156
Total assets	$	732,271									$	729,376									$	698,157
Interest-bearing liabilities:
Savings accounts		192,434				89		0.18	%			190,313				98		0.21	%			158,427				233		0.59	%
NOW accounts		69,730				38		0.22	%			69,511				48		0.28	%			46,593				50		0.43	%
Money market accounts		72,469				43		0.24	%			75,994				54		0.28	%			71,396				122		0.68	%
Term certificates		104,604				176		0.67	%			96,978				238		0.98	%			159,224				677		1.70	%
Total interest-bearing deposits		439,237				346		0.32	%			432,796				438		0.40	%			435,640				1,082		0.99	%
FHLBB and FRB advances		51,502				198		1.54	%			70,857				232		1.31	%			79,133				244		1.23	%
Total interest-bearing liabilities		490,739				544		0.44	%			503,653				670		0.53	%			514,773				1,326		1.03	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		124,656										106,929										77,947
Other noninterest-bearing liabilities		13,606										15,375										22,893
Total liabilities		629,001										625,957										615,613
Total stockholders' equity		103,270										103,419										82,544
Total liabilities and stockholders' equity	$	732,271									$	729,376									$	698,157
Net interest income					$	5,198									$	5,092									$	4,734
Interest rate spread(4)								2.88	%									2.82	%									2.65	%
Net interest-earning assets(5)	$	201,275									$	183,678									$	143,228
Net interest margin(6)								3.00	%									2.96	%									2.88	%
Ratio of interest-earning assets to interest-bearing liabilities		141.01	%									136.47	%									127.82	%

(1) Includes nonaccruing loan balances and interest received on such loans.(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 June, 2021, March 31, 2021 and June 30, 2020, respectively.(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.(6) Net interest margin represents net interest income divided by average total interest-earning assets.

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

	Average Balance and Yields
	Year to Date
	June 30, 2021											June 30, 2020
	Average				Interest				Average			Average				Interest				Average
	Outstanding				Earned/				Yield/			Outstanding				Earned/				Yield/
(Dollars in thousands)	Balance				Paid				Rate			Balance				Paid				Rate
Interest-earning assets:
Loans (1)	$	593,382			$	11,013			3.71	%		$	554,053			$	11,343			4.09	%
Investment securities(2) (3)		56,590				476			1.68	%			58,459				711			2.43	%
Interest-earning deposits		39,713				15			0.08	%			20,688				61			0.59	%
Total interest-earning assets		689,685				11,504			3.34	%			633,200				12,115			3.83	%
Noninterest-earning assets		41,146											35,965
Total assets	$	730,831										$	669,165
Interest-bearing liabilities:
Savings accounts		191,379				187			0.20	%			146,635				516			0.70	%
NOW accounts		69,621				86			0.25	%			42,821				101			0.47	%
Money market accounts		74,222				97			0.26	%			74,895				321			0.86	%
Term certificates		100,812				414			0.82	%			173,939				1,570			1.81	%
Total interest-bearing deposits		436,034				784			0.36	%			438,290				2,508			1.14	%
FHLBB and FRB advances		61,126				430			1.41	%			63,118				447			1.42	%
Total interest-bearing liabilities		497,160				1,214			0.49	%			501,408				2,955			1.18	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		115,841											70,333
Other noninterest-bearing liabilities		14,486											16,221
Total liabilities		627,487											587,962
Total stockholders' equity		103,344											81,204
Total liabilities and stockholders' equity	$	730,831										$	669,166
Net interest income					$	10,290										$	9,160
Interest rate spread(4)									2.85	%										2.65	%
Net interest-earning assets(5)	$	192,525										$	131,792
Net interest margin(6)									2.98	%										2.89	%
Ratio of interest-earning assets to interest-bearing liabilities		138.72	%										126.28	%

(1) Includes nonaccruing loan balances and interest received on such loans.(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 $2,000 and $3,000 for the six months ended June 30, 2021 and 2020, respectively.(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.(6) Net interest margin represents net interest income divided by average total interest-earning assets.

Randolph Bancorp, Inc.Average Balances Trend(Dollars in thousands)(Unaudited)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2021			2021			2020			2020			2020
Interest-earning assets:
Total loans	$	592,750		$	594,021		$	580,002		$	559,370		$	576,964
Investment securities		55,376			57,818			58,329			57,211			58,119
Interest-earning deposits		43,888			35,492			30,573			48,949			22,918
Total interest-earning assets		692,014			687,331			668,904			665,530			658,001
Non-interest earning assets		40,257			42,045			45,015			41,037			40,156
Total assets	$	732,271		$	729,376		$	713,919		$	706,567		$	698,157
Interest-bearing liabilities:
Savings accounts	$	192,434		$	190,313		$	181,653		$	170,762		$	158,427
NOW accounts		69,730			69,511			59,005			57,646			46,593
Money market accounts		72,469			75,994			75,106			72,369			71,396
Term certificates		104,604			96,978			112,260			131,053			159,224
Total interest-bearing deposits		439,237			432,796			428,024			431,830			435,640
FHLBB and FRB advances		51,502			70,857			77,584			82,639			79,133
Total interest-bearing liabilities		490,739			503,653			505,608			514,469			514,773
Noninterest-bearing liabilities:
Noninterest-bearing deposits		124,656			106,929			94,540			88,394			77,947
Other noninterest-bearing liabilities		13,606			15,375			13,539			12,724			22,893
Total liabilities		629,001			625,957			613,687			615,587			615,613
Total stockholders' equity		103,270			103,419			100,232			90,980			82,544
Total liabilities and stockholders' equity	$	732,271		$	729,376		$	713,919		$	706,567		$	698,157

Randolph Bancorp, Inc.Average Balances Trend(Dollars in thousands)(Unaudited)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2021			2021			2020			2020			2020
Interest-earning assets:
Total loans	3.71	%		3.71	%		3.82	%		3.82	%		3.97	%
Investment securities	1.65	%		1.71	%		1.99	%		2.13	%		2.28	%
Interest-earning deposits	0.07	%		0.08	%		0.10	%		0.06	%		0.09	%
Total interest-earning assets	3.32	%		3.35	%		3.49	%		3.40	%		3.68	%
Interest-bearing liabilities:
Savings accounts	0.18	%		0.21	%		0.31	%		0.40	%		0.59	%
NOW accounts	0.22	%		0.28	%		0.29	%		0.28	%		0.43	%
Money market accounts	0.24	%		0.28	%		0.33	%		0.41	%		0.68	%
Term certificates	0.67	%		0.98	%		1.04	%		1.35	%		1.70	%
Total interest-bearing deposits	0.32	%		0.40	%		0.50	%		0.68	%		0.99	%
FHLBB and FRB advances	1.54	%		1.31	%		1.27	%		1.21	%		1.23	%
Total interest-bearing liabilities	0.44	%		0.53	%		0.62	%		0.76	%		1.03	%
Interest rate spread	2.88	%		2.82	%		2.87	%		2.64	%		2.65	%
Net interest rate margin	3.00	%		2.96	%		3.02	%		2.81	%		2.88	%
Ratio of interest-earning assets to interest-bearing liabilities	141.01	%		136.47	%		132.30	%		129.36	%		127.82	%

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

	Three Months Ended
	June 30, 2021 vs. March 31, 2021
	Increase (Decrease)								Total
	Due to Changes in								Increase
	Volume				Rate				(Decrease)
Interest-earning assets:
Loans	$	(3	)		$	-			$	(3	)
Investment securities		(10	)			(8	)			(18	)
Interest-earning deposits		2				-				2
Total interest-earning assets		(11	)			(8	)			(19	)
Interest-bearing liabilities:
Savings accounts		1				(10	)			(9	)
NOW accounts		-				(10	)			(10	)
Money market accounts		(3	)			(8	)			(11	)
Term certificates		18				(80	)			(62	)
Total interest-bearing deposits		16				(108	)			(92	)
FHLBB and FRB advances		(70	)			35				(35	)
Total interest-bearing liabilities		(54	)			(73	)			(127	)
Change in net interest income	$	43			$	65			$	108

	Three Months Ended
	June 30, 2021 vs. 2020
	Increase (Decrease)								Total
	Due to Changes in								Increase
	Volume				Rate				(Decrease)
Interest-earning assets:
Loans	$	157			$	(375	)		$	(218	)
Investment securities		(15	)			(88	)			(103	)
Interest-earning deposits		4				-				4
Total interest-earning assets		146				(463	)			(317	)
Interest-bearing liabilities:
Savings accounts		43				(187	)			(144	)
NOW accounts		19				(31	)			(12	)
Money market accounts		2				(81	)			(79	)
Term certificates		(181	)			(320	)			(501	)
Total interest-bearing deposits		(117	)			(619	)			(736	)
FHLBB and FRB advances		(98	)			51				(47	)
Total interest-bearing liabilities		(215	)			(568	)			(783	)
Change in net interest income	$	361			$	105			$	466

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

	Year to Date
	June 30, 2021 vs. 2020
	Increase (Decrease)								Total
	Due to Changes in								Increase
	Volume				Rate				(Decrease)
Interest-earning assets:
Loans	$	313			$	(643	)		$	(330	)
Investment securities		(22	)			(213	)			(235	)
Interest-earning deposits		3				(47	)			(44	)
Total interest-earning assets		294				(903	)			(609	)
Interest-bearing liabilities:
Savings accounts		11				(340	)			(329	)
NOW accounts		18				(33	)			(15	)
Money market accounts		(3	)			(221	)			(224	)
Term certificates		(502	)			(654	)			(1,156	)
Total interest-bearing deposits		(476	)			(1,248	)			(1,724	)
FHLBB and FRB advances		(14	)			(4	)			(18	)
Total interest-bearing liabilities		(490	)			(1,252	)			(1,742	)
Change in net interest income	$	784			$	349			$	1,133

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

	For the Three Months Ended June 30, 2021
	Envision Bank				Envision Mortgage				Consolidated Total
Net interest income	$	4,535			$	664			$	5,199
Provision (credit) for loan losses		(27	)			-				(27	)
Net interest income after provision (credit) for loan losses		4,562				664				5,226
Non-interest income:
Customer service fees		393				26				419
Gain on loan origination and sale activities, net (1)		-				6,558				6,558
Mortgage servicing fees, net		(94	)			475				381
Other		158				118				276
Total non-interest income		457				7,177				7,634
Non-interest expenses:
Salaries and employee benefits		1,746				5,564				7,310
Occupancy and equipment		407				214				621
Other non-interest expenses		1,265				1,431				2,696
Total non-interest expenses		3,418				7,209				10,627
Income before income taxes and elimination of inter-segment profit	$	1,601			$	632				2,233
Elimination of inter-segment profit										(818	)
Income before income taxes										1,415
Income tax expense (benefit)										(162	)
Net income									$	1,577

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

	For the Three Months Ended June 30, 2020
	Envision Bank				Envision Mortgage				Consolidated Total
Net interest income	$	3,944			$	789			$	4,733
Provision for loan losses		1,068				-				1,068
Net interest income after provision for loan losses		2,876				789				3,665
Non-interest income:
Customer service fees		245				21				266
Gain on loan origination and sale activities, net (1)		-				14,736				14,736
Mortgage servicing fees, net		(95	)			(1,258	)			(1,353	)
Other		85				132				217
Total non-interest income		235				13,631				13,866
Non-interest expenses:
Salaries and employee benefits		1,925				6,476				8,401
Occupancy and equipment		465				374				839
Other non-interest expenses		1,057				1,082				2,139
Total non-interest expenses		3,447				7,932				11,379
Income (loss) before income taxes and elimination of inter-segment profit	$	(336	)		$	6,488				6,152
Elimination of inter-segment profit										(367	)
Income before income taxes										5,785
Income tax expense										594
Net income									$	5,191

(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 Six Months Ended June 30, 2021
	Envision Bank				Envision Mortgage				Consolidated Total
Net interest income	$	8,736			$	1,554			$	10,290
Provision (credit) for loan losses		(240	)			-				(240	)
Net interest income after provision (credit) for loan losses		8,976				1,554				10,530
Non-interest income:
Customer service fees		733				53				786
Gain on loan origination and sale activities, net (1)		-				18,232				18,232
Mortgage servicing fees, net		(189	)			1,349				1,160
Other		309				251				560
Total non-interest income		853				19,885				20,738
Non-interest expenses:
Salaries and employee benefits		3,548				12,199				15,747
Occupancy and equipment		851				514				1,365
Other non-interest expenses		2,349				3,117				5,466
Total non-interest expenses		6,748				15,830				22,578
Income before income taxes and elimination of inter-segment profit	$	3,081			$	5,609				8,690
Elimination of inter-segment profit										(1,499	)
Income before income taxes										7,191
Income tax expense										1,502
Net income									$	5,689

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

	For the Six Months Ended June 30, 2020
	Envision Bank				Envision Mortgage				Consolidated Total
Net interest income	$	7,937			$	1,220			$	9,157
Provision for loan losses		1,792				-				1,792
Net interest income after provision for loan losses		6,145				1,220				7,365
Non-interest income:
Customer service fees		518				55				573
Gain on loan origination and sale activities, net (1)		-				22,209				22,209
Mortgage servicing fees, net		(182	)			(2,426	)			(2,608	)
Other		225				247				472
Total non-interest income		561				20,085				20,646
Non-interest expenses:
Salaries and employee benefits		5,023				11,504				16,527
Occupancy and equipment		869				668				1,537
Other non-interest expenses		2,203				2,071				4,274
Total non-interest expenses		8,095				14,243				22,338
Income (loss) before income taxes and elimination of inter-segment profit	$	(1,389	)		$	7,062				5,673
Elimination of inter-segment profit										(695	)
Income before income taxes										4,978
Income tax expense										605
Net income									$	4,373

Randolph Bancorp, Inc.Reconciliation of GAAP to Non-GAAP Net Income (in thousands, except per share amounts)Unaudited

				Quarter Ended
				June 30, 2021
Adjustments		Income Statement Section		Income BeforeTaxes				Provision(credit) forIncome Taxes				Net Income				Earnings perShare (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 BeforeTaxes				Provision forIncome Taxes				Net Income				Earnings perShare (diluted)
GAAP basis				$	5,776			$	1,664			$	4,112			$	0.78
Accrued severance expenses		Non-interest expense			109				31				78				0.01
Non-GAAP basis				$	5,885			$	1,695			$	4,190			$	0.79
				Quarter Ended
				December 31, 2020
Adjustments		Income Statement Section		Income BeforeTaxes				Provision forIncome Taxes				Net Income				Earnings perShare (diluted)
GAAP basis				$	7,485			$	2,211			$	5,274			$	1.01
Residential lending office closure		Non-interest expense			294				63				231				0.04
COVID-19 related expenses		Non-interest expense			69				15				54				0.01
Non-GAAP basis				$	7,848			$	2,289			$	5,559			$	1.06
				Quarter Ended
				September 30, 2020
Adjustments		Income Statement Section		Income BeforeTaxes				Provision forIncome Taxes				Net Income				Earnings perShare (diluted)
GAAP basis				$	12,946			$	2,661			$	10,285			$	2.01
COVID-19 related expenses		Non-interest expense			22				4				18				-
Non-GAAP basis				$	12,968			$	2,665			$	10,303			$	2.01
				Quarter Ended
				June 30, 2020
Adjustments		Income Statement Section		Income (Loss)Before Taxes				Provision forIncome Taxes				Net Income				Earnings perShare (diluted)
GAAP basis				$	5,785			$	594			$	5,191			$	1.02
COVID-19 related expenses		Non-interest expense			189				-				189				0.04
Non-GAAP basis				$	5,974			$	594			$	5,380			$	1.06

Randolph Bancorp, Inc.Reconciliation of GAAP to Non-GAAP Net Income (in thousands, except per share amounts)(Unaudited)

				Year to Date
				June 30, 2021
Adjustments		Income Statement Section		IncomeBefore Taxes				Provision forIncome Taxes				Net Income				Earnings perShare (diluted)
GAAP basis				$	7,191			$	1,502			$	5,689			$	1.10
Loss on disposal of fixed assets		Non-interest income			29				8				21				-
Accrued severance expenses		Non-interest expense			254				72				182				0.04
Other outsourcing expenses		Non-interest expense			71				20				51				0.01
Non-GAAP basis				$	7,545			$	1,602			$	5,943			$	1.15
				Year to Date
				June 30, 2020
Adjustments		Income Statement Section		IncomeBefore Taxes				Provision forIncome Taxes				Net Income(Loss)				Earnings perShare (diluted)
GAAP basis				$	4,978			$	605			$	4,373			$	0.86
Retirement salary and benefits compensation		Non-interest expense			692				-				692				0.14
Accelerated vesting of stock-based compensation		Non-interest expense			683				-				683				0.13
COVID-19 related expenses		Non-interest expense			207				-				207				0.04
Non-GAAP basis				$	6,560			$	605			$	5,955			$	1.17

Randolph Bancorp, Inc. Selected Financial Highlights(Unaudited)

	At or for the Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
	2021				2021				2020				2020				2020
Return on average assets: (1, 5)
GAAP		0.86	%			2.26	%			2.95	%			5.82	%			2.97	%
Non-GAAP (2)		0.96	%			2.30	%			3.11	%			5.83	%			3.08	%
Return on average equity: (1, 6)
GAAP		6.11	%			15.90	%			21.05	%			45.22	%			25.16	%
Non-GAAP (2)		6.79	%			16.21	%			22.18	%			45.30	%			26.07	%
Net interest margin		3.00	%			2.96	%			3.02	%			2.81	%			2.88	%
Non-interest income to total income:
GAAP		56.73	%			70.93	%			75.57	%			80.98	%			74.04	%
Non-GAAP (2)		56.83	%			70.93	%			75.57	%			80.98	%			74.04	%
Profit percentage (9)
GAAP		11.55	%			31.76	%			37.33	%			54.97	%			37.59	%
Non-GAAP (2)		13.56	%			32.39	%			39.09	%			55.06	%			38.62	%
Efficiency ratio: (7)
GAAP		88.45	%			68.24	%			62.67	%			45.03	%			62.41	%
Non-GAAP (2)		86.44	%			67.61	%			60.91	%			44.94	%			61.38	%
Tier 1 capital to average assets (3)		13.72	%			13.81	%			13.85	%			13.28	%			11.93	%
Non-performing assets as a percentage of total assets (4)		0.86	%			1.14	%			1.01	%			1.38	%			0.47	%
Allowance for loan losses as a percentage of total loans (4)		1.19	%			1.32	%			1.39	%			1.35	%			1.22	%
Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4)		1.22	%			1.36	%			1.41	%			1.39	%			1.26	%
Allowance for loan losses as a percentage of non-performing assets		101.89	%			78.99	%			94.58	%			67.21	%			179.31	%
Allowance for loan losses as a percentage of non-performing loans		101.89	%			77.75	%			92.87	%			66.31	%			186.60	%
Tangible book value per share (8)	$	19.16			$	18.80			$	18.16			$	17.18			$	15.43
Outstanding shares		5,254,522				5,364,240				5,495,514				5,524,390				5,479,884

(1)	Annualized for quarterly periods presented.
(2)	See page 16 – Reconciliation of GAAP to Non-GAAP Net Income.
(3)	Average assets calculated on a quarterly basis for all periods presented.
(4)	Total loans exclude loans held for sale but includes net deferred loan costs and fees.
(5)	This non-GAAP measure represents net income divided by average total assets.
(6)	This non-GAAP measure represents net income divided by average stockholders’ equity.
(7)	This non-GAAP measure represents total non-interest expenses divided by net interest income and non-interest income.
(8)	This non-GAAP measure represents total stockholders’ equity, minus intangible assets of $28,000, $31,000, $33,000, $36,000, and $38,000 at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020, respectively, divided by outstanding shares at period end.
(9)	This non-GAAP measure represents net interest income plus noninterest income less non-interest expense divided by net interest income plus non-interest income.

Randolph Bancorp, Inc.Selected Financial Highlights(Unaudited)

	At or for the Six Months Ended
	June 30,				June 30,
	2021				2020
Return on average assets: (1, 5)
GAAP		1.56	%			1.31	%
Non-GAAP (2)		1.63	%			1.78	%
Return on average equity: (1, 6)
GAAP		11.01	%			10.77	%
Non-GAAP (2)		11.50	%			14.67	%
Net interest margin		2.98	%			2.89	%
Non-interest income to total income:
GAAP		65.15	%			68.54	%
Non-GAAP (2)		65.19	%			68.54	%
Profit percentage (9)
GAAP		23.54	%			23.26	%
Non-GAAP (2)		24.71	%			28.69	%
Efficiency ratio: (7)
GAAP		76.46	%			76.74	%
Non-GAAP (2)		75.29	%			71.31	%
Tier 1 capital to average assets (3)		13.72	%			11.93	%
Non-performing assets as a percentage of total assets (4)		0.86	%			0.47	%
Allowance for loan losses as a percentage of total loans (4)		1.19	%			1.22	%
Allowance for loan losses as a percentage of total loans, excluding SBA PPP Loans (4)		1.22	%			1.26	%
Allowance for loan losses as a percentage of non-performing assets		101.89	%			179.31	%
Allowance for loan losses as a percentage of non-performing loans		101.89	%			186.60	%
Tangible book value per share (8)	$	19.16			$	15.43
Outstanding shares		5,254,522				5,479,884

(1)	Annualized for quarterly periods presented.
(2)	See page 16 – Reconciliation of GAAP to Non-GAAP Net Income.
(3)	Average assets calculated on a quarterly basis for all periods presented.
(4)	Total loans exclude loans held for sale but includes net deferred loan costs and fees.
(5)	This non-GAAP measure represents net income divided by average total assets.
(6)	This non-GAAP measure represents net income divided by average stockholders’ equity.
(7)	This non-GAAP measure represents total non-interest expenses divided by net interest income and non-interest income.
(8)	This non-GAAP measure represents total stockholders’ equity, minus intangible assets of $28,000 and $38,000 at June 30, 2021 and June 30, 2020, respectively, divided by outstanding shares at period end.
(9)	This non-GAAP measure represents net interest income plus noninterest income less non-interest expense divided by net interest income plus non-interest income.

Randolph Bancorp, Inc.COVID-19 Supplemental Disclosure(Unaudited)

Loan Payment Deferrals

	As of June 30, 2021
	Commercial loans				Residential andconsumer loans				Residential loansserviced for others
	(Dollars in thousands)
Balance outstanding	$	202,743			$	343,655			$	1,999,083
COVID-19 related loan payment deferrals:
Loans in COVID-19-related loan payment deferral	$	1,006			$	2,209			$	5,488
Loans in deferral as a percentage of category loans		0.5	%			0.6	%			0.3	%
Loans with suspended payment	$	1,006			$	1,957			$	1,880
Loans with reduced payment		-				252				3,608
Loans which obtained a COVID-19-related payment deferral but
have since resumed payment	$	36,955			$	17,683			$	61,872
Loans reinstated (borrower paid any unpaid principal and interest)		1,551				2,235				5,767
Loans on a repayment plan		-				-				1,341
Loans which resumed payment but deferred principal and/or
interest payments to maturity		28,594				9,309				39,077
Loans which were paid off completely		6,810				5,342				15,687

Randolph Bancorp, Inc.COVID-19 Supplemental Disclosure(Unaudited)

COVID-19 Highly Impacted Sectors

		As of June 30, 2021
		Exposure Balance																			Exposure by Risk Weighting
																											Balance
							Real					Commercial															with
							Estate					&															Deferred
Industry (1)		Total					Secured					Industrial					Construction				Pass			Criticized			Payments
		(Dollars in thousands)
Group home/care facility		$	1,067				$	1,067				$	-				$	-			$	1,067		$	-		$	-
Hotels/hospitality			9,592					9,528					64					-				64			9,528			-
Restaurants/food service			2,639					1,526					1,113					-				2,639			-			-
Retail/shopping center			21,887					14,560					-					3,662				16,604			1,618			1,006
Other sectors (2)			11,385					9,433					95					300				9,208			620			-
Total loans in COVID-19 impacted sectors		$	41,348				$	36,114				$	1,272				$	3,962			$	29,582		$	11,766		$	1,006
Percentage of commercial loans outstanding		22.7		%			24.6		%			5.3		%			34.5		%
Commercial loans outstanding		$	182,277				$	146,930				$	23,869				$	11,478
Loan to value secured by real estate (3)							54.6		%								63.6		%

(1)	This disclosure focuses on industries with balances that are significant to the portfolio at June 30, 2021 and omits industries affected by the COVID-19 pandemic (oil and gas, transportation, etc.) to which the Company has minimal or no exposure. This disclosure also excludes SBA PPP Loans, given their government guarantee.
(2)	Includes customers operating in various sectors which have been impacted by COVID-19.
(3)	Loan to value secured by real estate equals the exposure balance divided by the most recent appraised value.

For More Information, Contact:William M. Parent, President and ChiefExecutive Officer (617-925-1955)