After announcing plans in March to sell itself and then closing the first quarter with net losses, Quincy-based Envision Bank saw positive earnings in the second quarter.
The bank had second quarter net income of $248,000, or $0.05 per basic and diluted share, compared to a net loss of $235,000, or $0.05 per basic and diluted share, in the first quarter. In the second quarter of 2021, Envision Bank had net income of $1.6 million, or $0.32 per basic share and $0.31 per diluted share.
The bank’s second quarter results included $357,000 in merger expenses, and the first quarter had merger expenses totaling $588,000, according to the second quarter earnings statement for Randolph Bancorp Inc., the bank’s parent company. Randolph Bancorp had announced on March 28 that it would be acquired by Easthampton-based Hometown Financial Group.
The bank said it expects to complete the merger in the fourth quarter.
“During the quarter, we were pleased to obtain shareholder approval for the proposed merger with Hometown Financial Group, Inc.,” Envision Bank’s President and CEO William Parent said in the earnings statement. “We are excited to be joining Hometown and becoming part of a larger organization. I want to thank our employees for their dedication and hard work during this time of transition as we maintain a business-as-usual environment for our customers.”
Loan growth helped drive a year-over-year increase in Envision Bank’s net interest income, which was up $812,000, or 15.6 percent to $6 million in the second quarter. The net interest margin was 3.39 percent in the second quarter, up 38 basis points from the same quarter last year. The bank attributed the increase to year-over-year average loan growth of $41.3 million, an 18 basis point increase in the average yield earned on loans, and a 10 basis point decrease in the cost of interest-bearing liabilities.
Mortgage activity affected the bank’s noninterest income. Envision Bank saw its second quarter noninterest income decrease year-over-year by $5 million, or 73.2 percent, to $1.8 million. The bank said the decrease was primarily due to a decline of $5.3 million in the net gain on loan origination and sale activities.
Envision Bank’s sold mortgage loans totaled $56.8 million in the second quarter compared to $342.8 million in the same quarter last year. The bank had a mortgage pipeline of $10.9 million at the end of the second quarter, while its pipeline as of June 30, 2021, had been $139.7 million.
Envision Bank had total assets in the second quarter of $774.8 million, up from $770.3 million at the end of March. Total loans were $662.8 million in the second quarter compared to $584.8 million in the first quarter. Total deposits were $641.36 million, up 2.7 percent from March 31.
