Quincy-based Envision Bank will start paying a regular quarterly dividend to shareholders and also use excess capital on a stock repurchase program.
The board of directors for the bank’s parent company, Randolph Bancorp, declared a regular quarterly dividend of $0.15 per common share that will be payable in November, the bank said in its third quarter earnings statement.
“Our decision to initiate a regular quarterly dividend reflects the continued improvement in our operating performance and our optimism for what lies ahead for our company,” William M. Parent, Envision Bank’s president and CEO, said in the earnings statement. “This dividend also complements our share buyback program, which, along with continued organic growth, gives us versatility to deploy our excess capital in a balanced and effective manner.”
The bank will buy back as much as 510,000 shares of its common stock, approximately 10 percent of the outstanding common stock. The repurchases will be made in open market transactions, and the repurchase program could last for a year October 29, 2022.
Envision Bank had third quarter net income of $3.1 million, or $0.64 per basic share and $0.62 per diluted share, compared to net income of $1.6 million, or $0.32 per basic and $0.31 per diluted share, in the second quarter and $10.3 million, or $2.01 per basic and diluted share, in the third quarter of 2020.
The bank’s third quarter results included $139,000 in severance expenses and $190,000 in other outsourcing expenses, both one-time events, the bank said.
“The third quarter was a strong quarter for our company, as our local economy continued to progress to more normal post pandemic operations,” Parent said. “Strong loan growth, net interest margin expansion, net interest income growth, improved credit metrics and mortgage banking income drove strong earnings contributions across our organization.
The bank had total assets in the third quarter of $751.1 million compared to $744.1 million at the end of the second quarter. Total loans increased by $23.6 million, or 4.3 percent, to $570 million in the third quarter, up from $546.4 million in the second quarter. Loan growth was driven by commercial real estate growth of $17.4 million, or 10.4 percent, and home equity and construction loan growth of $5.6 million and $5.4 million, respectively, the bank said.
For the first nine months of 2021, Envision Bank had net income of $8.8 million, or $1.78 per basic share and $1.71 per diluted share, compared to net income of $14.7 million, or $2.86 per basic and diluted share, for the same period in 2020.
The bank had losing years in 2017 and 2018 before ending the past two years with positive earnings.
