Randolph Bancorp boosted its second quarter earnings in part due to increasing residential mortgage volume.

The holding company for Randolph Savings Bank posted net income totaling $718,000 and $720,000 for the three and six months ended June 30, compared with net losses of $367,000 and $652,000, respectively, for the same periods last year.

James P. McDonough, president and CEO, said in a statement, “Since arriving at the bank in 2013, I have worked closely with our board of directors to take the strategic steps necessary to turn around an institution that operated a branch network spread over two states, was overly invested in securities and lacked the necessary investments in both its technology and management team to successfully compete in the marketplace. Over the past three years, we have assembled an experienced management team, sold off out-of-state branches, established a strong credit culture and invested in our on-line and mobile banking capabilities. With the completion of our stock offering and the acquisition of First Eastern, we believe we are prepared to take the next steps in our transformation to a community bank that is able to fully meet the needs of its customers.”

McDonough also said in a statement the company now faces the challenge of prudently deploying nearly $50 million in new capital raised during its stock offering.

The company said its quarterly income included a $486,000 gain on a life insurance settlement, without which it would have posted net income of $232,000, compared with a net loss of $367,000 in the year-ago period.

That $599,000 improvement in operating results was boosted largely by revenue growth with net interest income increasing $128,000 and gains on the sale of mortgage loans increasing $450,000. Net interest income was boosted by loan growth, with the average balance of loans increasing $35 million, or 13.2 percent, in 2016. The increase in loan sale gains reflects strong residential mortgage origination volume fueled by a decline in long-term interest rates and an increase in the proportion of such loans sold in the secondary market, the company said.

Net loans increased $10.4 million, or 3.7 percent, since year-end 2015 to $295.6 million. Commercial real estate loans increased $6.8 million to $81.7 million, and home equity loans and lines of credit increased $2.1 million to $35.3 million at June 30 compared to $33.3 million at year-end 2015.

While total assets increased $73 million during the six months ended June 30, $67.4 million of that growth resulted from stock subscriptions received in the stock offering which was completed on July 1. Due to the over-subscription in orders received, $16.5 million was refunded in July, the company said in a statement.