CONROE, Texas, July 21, 2021 /PRNewswire/ -- Spirit of Texas
Bancshares, Inc. (NASDAQ: STXB) ("Spirit," the "Company," "we,"
"our," or "us") reported net income of $12.4
million in the second quarter of 2021, representing diluted
earnings per share of $0.70, compared
to net income of $7.7 million in the
second quarter of 2020, representing diluted earnings per share of
$0.44. Financial results for
the second quarter of 2021 were favorably impacted by $2.4 million net accretion of origination fees
from the U.S. Small Business Administration (the "SBA") on Paycheck
Protection Program ("PPP") loans.
Second Quarter 2021 Financial and Operational
Highlights
- Non-interest income increased by $1.2
million or 47.3%, during the three months ended June 30, 2021 compared to the three months ended
March 31, 2021.
- Noninterest expense was tightly controlled and only increased
by $151 thousand during the three
months ended June 30, 2021 compared
to the three months ended March 31,
2021.
- Net interest margin for the second quarter of 2021 as reported
and on a tax equivalent basis(1) was 4.06% and 4.14%,
respectively.
- At June 30, 2021, return on
average assets was 1.57% annualized.
- Book value per share increased to $22.01 at June 30,
2021 and tangible book value per share(1)
increased to $17.12 at the same
date.
- At June 30, 2021, total
stockholders' equity to total assets was 12.25% and tangible
stockholders' equity to tangible assets(1) was
9.79%.
Dean Bass, Spirit's Chairman and
Chief Executive Officer, stated, "I am extremely pleased to report
another quarter of strong financial and operational results. While
second quarter net income continues to be assisted by PPP fee
income from the SBA, over the past year we have invested heavily in
initiatives that increase profitability going forward, even as PPP
fee income begins to decline in future quarters. We have fully
implemented cost-cutting initiatives across the organization to
unlock value where possible and invested in restructuring our SBA
loan department to drive growth in non-interest income over the
next few quarters. Excess cash has been directed to higher yielding
interest earning assets while maintaining sufficient liquidity to
fund future loan growth. Finally, we continue to focus on
non-interest income growth with our swap product offerings.
"Asset quality continues to improve with second quarter
nonperforming loans reaching pandemic lows and charge off activity
staying within our historical tolerance range. The economic
outlook, both nationally and locally, is strong and we are seeing
demand for loans return. As our capital levels continue to improve
sequentially, we will build the strength to pursue future strategic
opportunities. Overall, I am extremely proud of our team and
excited to see what the future holds for Spirit of Texas
Bancshares," Mr. Bass concluded.
Loan Portfolio and Composition
During the second quarter of 2021, gross loans decreased to
$2.27 billion as of June 30, 2021, a decrease of 6.5% from
$2.43 billion as of March 31, 2021, and a decrease of 6.4% from
$2.43 billion as of June 30, 2020. We continue to process a
significant volume of PPP loan forgiveness applications from our
customers. Excluding the effect of PPP loan forgiveness, the loan
portfolio as of June 30, 2021
increased by $17.4 million, or 3.4%
annualized from March 31, 2021. We
currently see many borrowers maintaining and often accelerating
their anticipated need for credit in 2021 and 2022, which has
allowed our current loan pipeline to remain at elevated
levels. Historically, the third and fourth quarters of our
fiscal year are periods of higher loan growth for us and we
anticipate this trend will continue in 2021.
Asset Quality
Asset quality continues to improve from levels experienced at
the height of the COVID-19 pandemic with non-performing loans
declining by $2.4 million or 23.9%
during the second quarter of 2021 from the first quarter of 2021.
Many of our borrowers have enjoyed a healthy increase in
business activity due primarily to heightened demand for goods and
services. The provision for loan losses recorded for the
second quarter of 2021 was $1.3 million, which increased the allowance
to $16.5 million, or 0.73% of the
$2.27 billion in gross loans
outstanding as of June 30, 2021.
Provision expense for the second quarter of 2021 related primarily
to the provisioning of loans moving from acquired loan portfolios
to the organic loan portfolio upon their renewal.
Nonperforming loans to loans held for investment ratio continues
to remain low at 0.33% as of June 30,
2021, which decreased from 0.41% as of March 31, 2021, and increased from 0.31% as of
June 30, 2020. Annualized net
charge-offs were 20 basis points for the second quarter of 2021
compared to 14 basis points for the first quarter of 2021.
Substantially all loans in active deferment related to the
COVID-19 pandemic at March 31, 2021
have resumed regularly scheduled payments during the second quarter
of 2021, and only $2.6 million of
loans remain on deferral as of June 30,
2021.
Deposits and Borrowings
Deposits totaled $2.57 billion as
of June 30, 2021, a decrease of 1.0%
from $2.60 billion as of
March 31, 2021, and an increase of 6.5% from $2.41 billion as of June
30, 2020. Noninterest-bearing demand deposits
decreased $28.2 million, or 3.5%,
from March 31, 2021, and increased
$26.4 million, or 3.5%, from June
30, 2020. The decrease in noninterest-bearing deposits is
primarily due to seasonal factors and deposit accounts related to
PPP loans funded during the first quarter of 2021.
Noninterest‑bearing demand deposits represented 30.0% of total
deposits as of June 30, 2021, down from 30.8% of total
deposits as of March 31, 2021, and
down from 30.9% of total deposits as of June 30, 2020.
Interest-bearing demand deposits increased $43.6 million, or 9.0%, from March 31, 2021 primarily due to the seasonality
of public funds. The average cost of deposits was 0.32% for
the second quarter of 2021, representing a 5 basis point decrease
from the first quarter of 2021 and a 34 basis point decrease from
the second quarter of 2020. The decrease in average cost of
deposits was due primarily to the continued repricing of
certificates of deposit that matured during the second quarter of
2021.
Borrowings decreased by $72.6
million during the second quarter of 2021 to $119.1 million due primarily to repayment of
advances under the Paycheck Protection Program Liquidity Facility
from the Board of Governors of the Federal Reserve System.
Borrowings totaled 3.9% of total assets at June 30, 2021,
compared to 6.1% at March 31, 2021
and 6.5% at June 30, 2020.
Net Interest Margin and Net Interest Income
The net interest margin for the second quarter of 2021 was
4.06%, an increase of 12 basis points from the first quarter of
2021 and an increase of 11 basis points from the second quarter of
2020. The tax equivalent net interest margin(1)
for the second quarter of 2021 was 4.14%, an increase of 16 basis
points from the first quarter of 2021 and 14 basis points from the
second quarter of 2020. Excluding the impact of PPP
loans(1), the tax equivalent net interest margin for the
first quarter of 2021 was 4.10% compared to 4.02% for the first
quarter of 2021. Approximately $4.8
million of net deferred PPP origination fees remain
unamortized at June 30, 2021. The net
interest margin for the second quarter was also assisted by a lower
average cash balance and higher average investments balance as
securities purchased during the first quarter of 2021 earn
approximately 130 basis points more than cash. The yield on loans
for the second quarter of 2021 was 5.30% compared to 5.09% at
March 31, 2021. Excluding the
impact of PPP loans(1), the yield on loans for the
second quarter of 2021 was 5.40% compared to 5.29% at March 31, 2021.
Net interest income totaled $29.7
million for the second quarter of 2021, an increase of 6.7%
from $27.8 million for the first
quarter of 2021. Interest income totaled $32.8 million for the second quarter of 2021, an
increase of 5.1% from $31.2 million
for the first quarter of 2021. Interest and fees on loans
increased $1.2 million, or 3.9%,
compared to the first quarter of 2021, and increased by
$1.1 million, or 3.6%, from the
second quarter of 2020. Interest expense was $3.1 million for the second quarter of 2021, a
decrease of 8.3% from $3.3 million
for the first quarter of 2021 and a decrease of 32.2% from
$4.5 million for the second quarter
of 2020.
Noninterest Income and Noninterest Expense
Noninterest income totaled $3.9
million for the second quarter of 2021, compared to
$2.6 million for the first quarter of
2021. This increase was primarily driven by increased other
noninterest income of $1.3 million
during the second quarter of 2021, which was comprised of swap fees
of $1.4 million compared to swap fees
for the first quarter of 2021 of $121
thousand.
Noninterest expense totaled $16.8
million in the second quarter of 2021, an increase of 0.91%
from $16.6 million in the first
quarter of 2021, which was primarily due to increases in salaries
and benefits expense and other operating expense, partially offset
by a decrease in data processing and network expense.
The efficiency ratio was 50.0% in the second quarter of 2021,
compared to 54.6% in the first quarter of 2021, and 56.3% in the
second quarter of 2020. The second quarter of 2021 efficiency
ratio continues to be assisted by PPP origination fees immediately
recognized at the time of forgiveness by the SBA.
_______________________________________________________
|
(1)
|
Tax Equivalent Net
Interest Margin, Tangible Book Value Per Share, Tangible
Stockholders' Equity to Tangible Assets Ratio and certain
PPP-related figures are all non-GAAP measures. In Spirit's
judgment, regarding Tax Equivalent Net Interest Margin, the fully
tax equivalent basis is the preferred industry measurement basis
for net interest margin and that it enhances comparability of net
interest income arising from taxable and tax-exempt sources.
Regarding Tangible Book Value Per Share and Tangible Stockholders'
Equity To Tangible Assets, Spirit believes that that these measures
are important to many investors in the marketplace who are
interested in changes from period to period in book value per share
exclusive of changes in intangible assets. Goodwill and other
intangible assets have the effect of increasing total book value
while not increasing its tangible book value. Furthermore,
Spirit believes that the PPP-related figures are important to
investors due to the anticipated short-term nature of the PPP loans
and the expected forgiveness by the SBA continuing in the coming
quarters. The non-GAAP financial measures that we
discuss in this earnings release should not be considered in
isolation or as a substitute for the most directly comparable or
other financial measures calculated in accordance with GAAP.
Moreover, the manner in which we
calculate the non-GAAP financial measures
discussed in this earnings release may differ from that of other
banking organizations reporting measures with similar names. You
should understand how such other banking organizations calculate
their financial measures similar or with names similar
to the non-GAAP financial measures Spirit has
discussed in this earnings release when
comparing such non-GAAP financial measures.
Please see a reconciliation to the nearest respective GAAP measures
at the end of this earnings release.
|
Conference Call
Spirit of Texas Bancshares, Inc. has scheduled a conference call
to discuss its second quarter 2021 financial results, which will be
broadcast live over the Internet, on Thursday, July 22, 2021 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in
the call, dial 201-389-0867 and ask for the "Spirit of Texas" call at least 10 minutes prior to the
start time, or access it live over the Internet at
https://ir.sotb.com/news-events/ir-calendar. For those who
cannot listen to the live call, a replay will be available through
July 29, 2021, and may be accessed by
dialing 201-612-7415 and using pass code 13721108#. Also, an
archive of the webcast will be available shortly after the call at
https://ir.sotb.com/news-events/ir-calendar for 90 days.
About Spirit of Texas Bancshares, Inc.
Spirit, through its wholly-owned subsidiary, Spirit of Texas
Bank SSB (the "Bank"), provides a wide range of relationship-driven
commercial banking products and services tailored to meet the needs
of businesses, professionals and individuals. The Bank has 37
locations in the Houston,
Dallas/Fort Worth, Bryan/College Station, Austin, San
Antonio/New Braunfels,
Corpus Christi, and Tyler
metropolitan areas, along with offices in North Central and South Texas. Please
visit https://www.sotb.com for more information.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties and are made pursuant
to the safe harbor provisions of Section 27A of the Securities Act
of 1933, as amended. Any statements about our anticipations,
expectations, beliefs, plans, predictions, projections, forecasts,
objectives, assumptions or future events or performance are not
historical facts and may be forward-looking. Forward-looking
statements are typically, but not exclusively, identified by the
use of forward-looking terminology such as "believes," "expects,"
"could," "may," "will," "should," "seeks," "likely," "intends"
"plans," "pro forma," "projects," "estimates" or "anticipates" or
the negative of these words and phrases or similar words or phrases
that are predictions of or indicate future events or trends and
that do not relate solely to historical matters.
Forward-looking statements involve numerous risks and uncertainties
and you should not rely on them as predictions of future
events. Factors that could cause our actual results to differ
materially from those described in the forward-looking
statements include, among others: (i) changes in general business,
industry, economic conditions, or competition; (ii) the impact of
the ongoing COVID-19 pandemic on the Bank's business, including the
impact of actions taken by governmental and regulatory authorities
in response to such pandemic, such as the Coronavirus Aid, Relief,
and Economic Security Act and the programs established thereunder,
and the Bank's participation in such programs, (iii) changes in any
applicable law, rule, regulation, policy, guideline, or practice
governing or affecting bank holding companies and their
subsidiaries or with respect to tax or accounting principles or
otherwise; (iv) adverse changes or conditions in capital and
financial markets; (v) changes in interest rates; (vi)
higher-than-expected costs or other difficulties related to
integration of combined or merged businesses; (vii) the inability
to realize expected cost savings or achieve other anticipated
benefits in connection with business combinations and other
acquisitions; (viii) changes in the quality or composition of our
loan and investment portfolios; (ix) adequacy of loan loss
reserves; (x) increased competition; (xi) loss of certain key
officers; (xii) continued relationships with major customers;
(xiii) deposit attrition; (xiv) rapidly changing technology; (xv)
unanticipated regulatory or judicial proceedings and liabilities
and other costs; (xvi) changes in the cost of funds, demand for
loan products, or demand for financial services; (xvii) other
economic, competitive, governmental, or technological factors
affecting our operations, markets, products, services, and prices;
and (xviii) our success at managing the foregoing
items. For a discussion of additional factors that
could cause our actual results to differ materially from those
described in the forward-looking statements, please see the risk
factors discussed in our most recent Annual Report on Form 10-K for
the year ended December 31, 2020,
filed with the U.S. Securities and Exchange Commission (the "SEC")
on March 5, 2021, and our other
filings with the SEC.
While forward-looking statements reflect our good-faith beliefs
and expectations of the Company's management team, they are not
guarantees of future performance. All forward-looking
statements are necessarily only estimates of future results.
Accordingly, actual results may differ materially from those
expressed in or contemplated by the particular forward-looking
statement, and, therefore, you are cautioned not to place undue
reliance on such statements. Further, any forward-looking
statement speaks only as of the date on which it is made, and we
undertake no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which the
statement is made or to reflect the occurrence of unanticipated
events or circumstances, except as required by applicable law.
Contacts:
|
Dennard Lascar
Investor Relations
|
|
Ken Dennard / Natalie
Hairston
|
|
(713)
529-6600
|
|
STXB@dennardlascar.com
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Consolidated
Statements of Income
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
|
|
(Dollars in
thousands, except per share data)
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
30,995
|
|
$
29,829
|
|
$
32,682
|
|
$
29,901
|
|
$
29,912
|
|
Interest and
dividends on investment securities
|
|
1,641
|
|
1,115
|
|
914
|
|
465
|
|
457
|
|
Other interest
income
|
|
118
|
|
225
|
|
101
|
|
115
|
|
185
|
|
Total interest
income
|
|
32,754
|
|
31,169
|
|
33,697
|
|
30,481
|
|
30,554
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
2,081
|
|
2,327
|
|
2,726
|
|
3,392
|
|
3,945
|
|
Interest on FHLB
advances and other borrowings
|
|
972
|
|
1,003
|
|
1,099
|
|
875
|
|
558
|
|
Total interest
expense
|
|
3,053
|
|
3,330
|
|
3,825
|
|
4,267
|
|
4,503
|
|
Net interest
income
|
|
29,701
|
|
27,839
|
|
29,872
|
|
26,214
|
|
26,051
|
|
Provision for loan
losses
|
|
1,349
|
|
1,086
|
|
4,417
|
|
2,831
|
|
2,838
|
|
Net interest
income after provision for loan losses
|
|
28,352
|
|
26,753
|
|
25,455
|
|
23,383
|
|
23,213
|
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
1,539
|
|
1,434
|
|
1,554
|
|
1,525
|
|
1,270
|
|
SBA loan servicing
fees, net
|
|
203
|
|
324
|
|
307
|
|
619
|
|
256
|
|
Mortgage referral
fees
|
|
384
|
|
274
|
|
347
|
|
428
|
|
357
|
|
Gain on sales of
loans, net
|
|
-
|
|
155
|
|
419
|
|
612
|
|
326
|
|
Gain (loss) on sales
of investment securities
|
|
-
|
|
5
|
|
-
|
|
1,031
|
|
-
|
|
Other noninterest
income
|
|
1,732
|
|
427
|
|
6,153
|
|
604
|
|
356
|
|
Total noninterest
income
|
|
3,858
|
|
2,619
|
|
8,780
|
|
4,819
|
|
2,565
|
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
9,603
|
|
9,220
|
|
10,656
|
|
11,365
|
|
7,946
|
|
Occupancy and
equipment expenses
|
|
2,354
|
|
2,662
|
|
2,749
|
|
2,222
|
|
2,761
|
|
Professional
services
|
|
457
|
|
524
|
|
521
|
|
555
|
|
716
|
|
Data processing and
network
|
|
931
|
|
1,229
|
|
1,379
|
|
1,002
|
|
849
|
|
Regulatory
assessments and insurance
|
|
483
|
|
535
|
|
549
|
|
517
|
|
379
|
|
Amortization of
intangibles
|
|
755
|
|
823
|
|
879
|
|
919
|
|
919
|
|
Advertising
|
|
47
|
|
78
|
|
74
|
|
333
|
|
119
|
|
Marketing
|
|
70
|
|
93
|
|
60
|
|
18
|
|
38
|
|
Telephone
expense
|
|
599
|
|
499
|
|
560
|
|
563
|
|
483
|
|
Conversion
expense
|
|
-
|
|
-
|
|
16
|
|
279
|
|
69
|
|
Other operating
expenses
|
|
1,486
|
|
971
|
|
984
|
|
1,520
|
|
1,825
|
|
Total noninterest
expense
|
|
16,785
|
|
16,634
|
|
18,427
|
|
19,293
|
|
16,104
|
|
Income before
income tax expense
|
|
15,425
|
|
12,738
|
|
15,808
|
|
8,909
|
|
9,674
|
|
Income tax
expense
|
|
3,015
|
|
2,652
|
|
3,353
|
|
1,821
|
|
1,980
|
|
Net
income
|
|
$
12,410
|
|
$
10,086
|
|
$
12,455
|
|
$
7,088
|
|
$
7,694
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September
30,
2020
|
|
June 30,
2020
|
|
|
|
|
|
(Dollars in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
57,651
|
|
$
28,879
|
|
$
31,396
|
|
$
29,345
|
|
$
35,248
|
Interest-bearing
deposits in other banks
|
|
82,448
|
|
40,687
|
|
231,638
|
|
121,739
|
|
200,096
|
Total
cash and cash equivalents
|
|
140,099
|
|
69,566
|
|
263,034
|
|
151,084
|
|
235,344
|
Time deposits in
other banks
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
Available for sale
securities, at fair value
|
|
434,223
|
|
442,576
|
|
212,420
|
|
119,814
|
|
90,878
|
Equity investments, at
fair value
|
|
23,877
|
|
23,741
|
|
24,000
|
|
-
|
|
-
|
Total
investment securities
|
|
458,100
|
|
466,317
|
|
236,420
|
|
119,814
|
|
90,878
|
Loans held for
sale
|
|
|
|
|
3,220
|
|
1,192
|
|
1,470
|
|
4,287
|
|
7,718
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment
|
|
2,272,089
|
|
2,430,594
|
|
2,388,532
|
|
2,452,353
|
|
2,427,292
|
Less: allowance for
loan and lease losses
|
|
(16,527)
|
|
(16,314)
|
|
(16,026)
|
|
(12,207)
|
|
(9,905)
|
Loans, net
|
|
|
|
2,255,562
|
|
2,414,280
|
|
2,372,506
|
|
2,440,146
|
|
2,417,387
|
Premises and
equipment, net
|
|
79,408
|
|
81,379
|
|
83,348
|
|
82,734
|
|
79,156
|
Accrued interest
receivable
|
|
9,071
|
|
10,588
|
|
11,199
|
|
11,612
|
|
12,188
|
Other real estate
owned and repossessed assets
|
|
140
|
|
-
|
|
133
|
|
302
|
|
3,743
|
Goodwill
|
|
|
|
77,681
|
|
77,681
|
|
77,681
|
|
77,681
|
|
77,966
|
Core deposit
intangible
|
|
6,240
|
|
6,995
|
|
7,818
|
|
8,698
|
|
9,617
|
SBA servicing
asset
|
|
2,567
|
|
2,821
|
|
2,953
|
|
3,051
|
|
3,115
|
Deferred tax asset,
net
|
|
1,962
|
|
2,213
|
|
1,085
|
|
494
|
|
-
|
Bank-owned life
insurance
|
|
31,161
|
|
16,057
|
|
15,969
|
|
15,878
|
|
15,787
|
Federal Home Loan
Bank and other bank stock, at cost
|
|
5,734
|
|
5,727
|
|
5,718
|
|
5,709
|
|
5,696
|
Right of use
assets
|
|
5,569
|
|
6,058
|
|
-
|
|
-
|
|
-
|
Other
assets
|
|
|
8,241
|
|
9,338
|
|
5,425
|
|
3,580
|
|
4,423
|
Total
assets
|
|
$
3,084,755
|
|
$
3,170,212
|
|
$
3,084,759
|
|
$
2,925,070
|
|
$
2,963,018
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
772,032
|
|
$
800,233
|
|
$
727,543
|
|
$
667,199
|
|
$
745,646
|
Interest-bearing
|
|
1,192,067
|
|
1,149,781
|
|
1,092,934
|
|
940,930
|
|
946,969
|
Total
transaction accounts
|
|
1,964,099
|
|
1,950,014
|
|
1,820,477
|
|
1,608,129
|
|
1,692,615
|
Time
deposits
|
|
608,073
|
|
647,536
|
|
638,658
|
|
679,387
|
|
722,376
|
Total
deposits
|
|
2,572,172
|
|
2,597,550
|
|
2,459,135
|
|
2,287,516
|
|
2,414,991
|
Accrued interest
payable
|
|
860
|
|
1,160
|
|
1,303
|
|
1,321
|
|
1,025
|
Short-term
borrowings
|
|
-
|
|
-
|
|
10,000
|
|
10,000
|
|
104,830
|
Long-term
borrowings
|
|
119,052
|
|
191,687
|
|
242,020
|
|
267,746
|
|
88,246
|
Deferred tax
liability, net
|
|
-
|
|
-
|
|
-
|
|
-
|
|
405
|
Operating lease
liability
|
|
5,730
|
|
6,231
|
|
-
|
|
-
|
|
-
|
Other
liabilities
|
|
|
9,173
|
|
7,827
|
|
11,522
|
|
6,966
|
|
5,943
|
Total
liabilities
|
|
2,706,987
|
|
2,804,455
|
|
2,723,980
|
|
2,573,549
|
|
2,615,440
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
301,202
|
|
300,591
|
|
298,850
|
|
298,509
|
|
298,176
|
Retained
earnings
|
|
96,111
|
|
85,246
|
|
76,683
|
|
65,783
|
|
59,907
|
Accumulated other
comprehensive income (loss)
|
|
(2,690)
|
|
(3,225)
|
|
1,005
|
|
(237)
|
|
1,272
|
Treasury
stock
|
|
|
(16,855)
|
|
(16,855)
|
|
(15,759)
|
|
(12,534)
|
|
(11,777)
|
Total
stockholders' equity
|
|
377,768
|
|
365,757
|
|
360,779
|
|
351,521
|
|
347,578
|
Total
liabilities and stockholders' equity
|
|
$
3,084,755
|
|
$
3,170,212
|
|
$
3,084,759
|
|
$
2,925,070
|
|
$
2,963,018
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Loan
Composition
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
|
(Dollars in
thousands)
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial loans (1)(2)
|
|
$
535,746
|
|
$
699,896
|
|
$
574,986
|
|
$
690,009
|
|
$
717,280
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
1-4 single family
residential loans
|
|
356,503
|
|
348,908
|
|
364,139
|
|
373,220
|
|
372,445
|
Construction, land
and development loans
|
|
345,420
|
|
344,557
|
|
415,488
|
|
402,476
|
|
390,068
|
Commercial real
estate loans (including multifamily)
|
|
964,313
|
|
964,342
|
|
956,743
|
|
906,134
|
|
843,247
|
Consumer loans and
leases
|
|
8,307
|
|
9,619
|
|
11,738
|
|
12,977
|
|
19,159
|
Municipal and other
loans
|
|
61,800
|
|
63,272
|
|
65,438
|
|
67,537
|
|
85,092
|
Total loans held in
portfolio
|
|
$
2,272,089
|
|
$
2,430,594
|
|
$
2,388,532
|
|
$
2,452,353
|
|
$
2,427,292
|
|
|
|
|
|
|
|
|
|
|
|
(1) Balance includes
$64.9 million, $67.4 million, $70.8 million, $72.7 million, and
$75.1 million, of the unguaranteed portion of SBA loans as of June
30, 2021, March 31, 2021 December 31, 2020,
|
September 30, 2020,
and June 30, 2020, respectively.
|
|
|
|
|
|
|
|
|
|
|
(2) Balance includes
$188.3 million, $366.5 million, $276.1 million, and $421.1 million
of PPP loans as of June 30, 2021, March 31, 2021, December 31,
2020, September 30, 2020,
|
|
and June 30, 2020,
respectively.
|
|
|
|
|
|
|
|
|
|
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Deposit
Composition
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
772,032
|
|
$
800,233
|
|
$
727,543
|
|
$
667,199
|
|
$
745,646
|
Interest-bearing
demand deposits
|
|
529,512
|
|
485,863
|
|
472,075
|
|
391,396
|
|
360,282
|
Interest-bearing NOW
accounts
|
|
10,763
|
|
9,904
|
|
10,288
|
|
8,655
|
|
31,132
|
Savings and money
market accounts
|
|
651,791
|
|
654,014
|
|
610,571
|
|
540,879
|
|
555,555
|
Time
deposits
|
|
608,074
|
|
647,536
|
|
638,658
|
|
679,387
|
|
722,376
|
Total
deposits
|
|
$
2,572,172
|
|
$
2,597,550
|
|
$
2,459,135
|
|
$
2,287,516
|
|
$
2,414,991
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Average Balances
and Yields
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2021
|
|
June 30,
2020
|
|
|
Average
Balance (1)
|
|
Interest/
Expense
|
|
Annualized
Yield/Rate
|
|
Average
Balance (1)
|
|
Interest/
Expense
|
|
Annualized
Yield/Rate
|
|
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
deposits in other banks
|
|
$
115,322
|
|
$
40
|
|
0.14%
|
|
$
220,940
|
|
$
148
|
|
0.27%
|
Loans, including
loans held for sale (2)
|
|
2,347,636
|
|
30,995
|
|
5.30%
|
|
2,332,707
|
|
29,911
|
|
5.14%
|
Investment securities
and other
|
|
469,365
|
|
1,719
|
|
1.47%
|
|
93,256
|
|
495
|
|
2.13%
|
Total
interest-earning assets
|
|
2,932,323
|
|
32,754
|
|
4.48%
|
|
2,646,903
|
|
30,554
|
|
4.63%
|
Noninterest-earning
assets
|
|
241,133
|
|
|
|
|
|
228,203
|
|
|
|
|
Total
assets
|
|
$
3,173,456
|
|
|
|
|
|
$
2,875,106
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
518,240
|
|
$
159
|
|
0.12%
|
|
$
346,220
|
|
$
175
|
|
0.20%
|
Interest-bearing NOW
accounts
|
|
10,572
|
|
1
|
|
0.05%
|
|
29,087
|
|
18
|
|
0.25%
|
Savings and money
market accounts
|
|
667,434
|
|
691
|
|
0.42%
|
|
539,533
|
|
825
|
|
0.61%
|
Time
deposits
|
|
622,390
|
|
1,230
|
|
0.79%
|
|
719,498
|
|
2,927
|
|
1.63%
|
FHLB advances and
other borrowings
|
|
184,472
|
|
972
|
|
2.11%
|
|
150,388
|
|
558
|
|
1.49%
|
Total
interest-bearing liabilities
|
|
2,003,108
|
|
3,053
|
|
0.61%
|
|
1,784,726
|
|
4,503
|
|
1.01%
|
Noninterest-bearing
liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
782,158
|
|
|
|
|
|
742,542
|
|
|
|
|
Other
liabilities
|
|
281
|
|
|
|
|
|
2,236
|
|
|
|
|
Stockholders'
equity
|
|
387,909
|
|
|
|
|
|
345,602
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
3,173,456
|
|
|
|
|
|
$
2,875,106
|
|
|
|
|
Net interest rate
spread
|
|
|
|
|
|
3.87%
|
|
|
|
|
|
3.62%
|
Net interest income
and margin
|
|
|
|
$
29,701
|
|
4.06%
|
|
|
|
$
26,051
|
|
3.95%
|
Net interest income
and margin (tax equivalent)(3)
|
|
|
$
30,262
|
|
4.14%
|
|
|
|
$
26,424
|
|
4.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances
presented are derived from daily average balances.
|
|
|
|
|
|
|
|
|
|
|
(2) Includes loans on
nonaccrual status.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) In order to make
pretax income and resultant yields on tax-exempt loans comparable
to those on taxable loans, a tax-equivalent adjustment has been
computed using a
|
federal tax rate of 21% for
the three months ended June 30, 2021 and June 30, 2020,
respectively.
|
|
|
|
|
|
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Average Balances
and Yields
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
|
Average
Balance (1)
|
|
Interest/
Expense
|
|
Annualized
Yield/Rate
|
|
Average
Balance (1)
|
|
Interest/
Expense
|
|
Annualized
Yield/Rate
|
|
|
(Dollars in
thousands)
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
deposits in other banks
|
|
115,322
|
|
$
40
|
|
0.14%
|
|
$
150,583
|
|
$
76
|
|
0.20%
|
Loans, including
loans held for sale (2)
|
|
2,347,636
|
|
30,995
|
|
5.30%
|
|
2,376,657
|
|
29,829
|
|
5.09%
|
Investment securities
and other
|
|
469,365
|
|
1,719
|
|
1.47%
|
|
339,859
|
|
1,264
|
|
1.51%
|
Total
interest-earning assets
|
|
2,932,323
|
|
32,754
|
|
4.48%
|
|
2,867,099
|
|
31,169
|
|
4.41%
|
Noninterest-earning
assets
|
|
241,133
|
|
|
|
|
|
234,544
|
|
|
|
|
Total
assets
|
|
$
3,173,456
|
|
|
|
|
|
$
3,101,643
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
518,240
|
|
$
159
|
|
0.12%
|
|
$
469,287
|
|
$
155
|
|
0.13%
|
Interest-bearing NOW
accounts
|
|
10,572
|
|
1
|
|
0.05%
|
|
10,232
|
|
1
|
|
0.04%
|
Savings and money
market accounts
|
|
667,434
|
|
691
|
|
0.42%
|
|
634,828
|
|
657
|
|
0.42%
|
Time
deposits
|
|
622,390
|
|
1,230
|
|
0.79%
|
|
643,906
|
|
1,514
|
|
0.95%
|
FHLB advances and
other borrowings
|
|
184,472
|
|
972
|
|
2.11%
|
|
213,483
|
|
1,003
|
|
1.91%
|
Total
interest-bearing liabilities
|
|
2,003,108
|
|
3,053
|
|
0.61%
|
|
1,971,736
|
|
3,330
|
|
0.68%
|
Noninterest-bearing
liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
782,158
|
|
|
|
|
|
748,785
|
|
|
|
|
Other
liabilities
|
|
281
|
|
|
|
|
|
19,072
|
|
|
|
|
Stockholders'
equity
|
|
387,909
|
|
|
|
|
|
362,050
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
3,173,456
|
|
|
|
|
|
$
3,101,643
|
|
|
|
|
Net interest rate
spread
|
|
|
|
|
|
3.87%
|
|
|
|
|
|
3.72%
|
Net interest income
and margin
|
|
|
|
$
29,701
|
|
4.06%
|
|
|
|
$
27,839
|
|
3.94%
|
Net interest income
and margin (tax equivalent)(3)
|
|
|
$
30,262
|
|
4.14%
|
|
|
|
$
28,168
|
|
3.98%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances
presented are derived from daily average balances.
|
|
|
|
|
|
|
|
|
|
|
(2) Includes loans on
nonaccrual status.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) In order to make
pretax income and resultant yields on tax-exempt loans comparable
to those on taxable loans, a tax-equivalent adjustment has been
computed using a
|
federal tax rate of 21% for
the three months ended June 30, 2021 and March 31, 2021,
respectively.
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
|
|
Reconciliation of
Non-GAAP Financial Measures - Adjusted Net Income and Adjusted
Basic and Diluted Earnings Per Share
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Three Months Ended
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Basic and diluted
earnings per share - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
12,410
|
|
$
10,086
|
|
$
12,455
|
|
$
7,088
|
|
$
7,694
|
Weighted average
number of common shares - basic
|
|
17,152,217
|
|
17,103,981
|
|
17,168,091
|
|
17,340,898
|
|
17,581,959
|
Weighted average
number of common shares - diluted
|
|
17,627,958
|
|
17,518,029
|
|
17,336,484
|
|
17,383,427
|
|
17,612,919
|
Basic earnings per
common share
|
|
$
0.72
|
|
$
0.59
|
|
$
0.73
|
|
$
0.41
|
|
$
0.44
|
Diluted earnings per
common share
|
|
$
0.70
|
|
$
0.58
|
|
$
0.72
|
|
$
0.41
|
|
$
0.44
|
Basic and diluted
earnings per share - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
12,410
|
|
$
10,086
|
|
$
12,455
|
|
$
7,088
|
|
$
7,694
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
investment securities
|
|
-
|
|
(5)
|
|
-
|
|
(1,031)
|
|
-
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Merger related
expenses
|
|
-
|
|
-
|
|
24
|
|
342
|
|
69
|
Taxes:
|
|
|
|
|
|
|
|
|
|
|
NOL
Carryback
|
|
-
|
|
-
|
|
|
|
|
|
-
|
Tax effect of
adjustments
|
|
-
|
|
1
|
|
(5)
|
|
145
|
|
(14)
|
Adjusted net
income
|
|
$
12,410
|
|
$
10,082
|
|
$
12,474
|
|
$
6,544
|
|
$
7,749
|
Weighted average
number of common shares - basic
|
|
17,152,217
|
|
17,103,981
|
|
17,168,091
|
|
17,340,898
|
|
17,581,959
|
Weighted average
number of common shares - diluted
|
|
17,627,958
|
|
17,518,029
|
|
17,336,484
|
|
17,383,427
|
|
17,612,919
|
Basic earnings per
common share - Non-GAAP basis
|
|
$
0.72
|
|
$
0.59
|
|
$
0.73
|
|
$
0.38
|
|
$
0.44
|
Diluted earnings per
common share - Non-GAAP basis
|
|
$
0.70
|
|
$
0.58
|
|
$
0.72
|
|
$
0.38
|
|
$
0.44
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
|
|
Reconciliation of
Non-GAAP Financial Measures - Net Interest Margin on a Fully
Taxable Equivalent Basis
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Three Months Ended
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Net interest
margin - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
29,701
|
|
$
27,839
|
|
$
29,872
|
|
$
26,214
|
|
$
26,051
|
Average interest-earning
assets
|
|
2,932,323
|
|
2,867,099
|
|
2,716,596
|
|
2,664,355
|
|
2,646,903
|
Net interest
margin
|
|
4.06%
|
|
3.94%
|
|
4.36%
|
|
3.90%
|
|
3.95%
|
Net interest
margin - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
29,701
|
|
$
27,839
|
|
$
29,872
|
|
$
26,214
|
|
$
26,051
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
Impact of fully
taxable equivalent adjustment
|
|
561
|
|
329
|
|
512
|
|
446
|
|
373
|
Net interest income
on a fully taxable equivalent basis
|
|
$
30,262
|
|
$
28,168
|
|
$
30,384
|
|
$
26,660
|
|
$
26,424
|
Average interest-earning
assets
|
|
2,932,323
|
|
2,867,099
|
|
2,716,596
|
|
2,664,355
|
|
2,646,903
|
Net interest margin
on a fully taxable equivalent basis - Non-GAAP basis
|
|
4.14%
|
|
3.98%
|
|
4.44%
|
|
3.97%
|
|
4.00%
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Reconciliation of
Non-GAAP Financial Measures - Tangible Book Value Per
Share
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Total stockholders'
equity
|
|
$
377,768
|
|
$
365,757
|
|
$
360,779
|
|
$
351,521
|
|
$
347,578
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
83,921
|
|
84,676
|
|
85,499
|
|
86,379
|
|
87,583
|
Tangible
stockholders' equity
|
|
$
293,847
|
|
$
281,081
|
|
$
275,280
|
|
$
265,142
|
|
$
259,995
|
Shares
outstanding
|
|
17,164,103
|
|
17,136,553
|
|
17,081,831
|
|
17,316,313
|
|
17,368,573
|
Book value per
share
|
|
$
22.01
|
|
$
21.34
|
|
$
21.12
|
|
$
20.30
|
|
$
20.01
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets per share
|
|
$
4.89
|
|
$
4.94
|
|
$
5.01
|
|
4.99
|
|
5.04
|
Tangible book value
per share
|
|
$
17.12
|
|
$
16.40
|
|
$
16.11
|
|
$
15.31
|
|
$
14.97
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Reconciliation of
Non-GAAP Financial Measures - Tangible Equity to Tangible
Assets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
June 30,
2020
|
|
|
(Dollars in
thousands)
|
Total
stockholders' equity to total assets - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity (numerator)
|
|
$
377,768
|
|
$
365,757
|
|
$
360,779
|
|
$
351,521
|
|
$
347,578
|
Total assets
(denominator)
|
|
3,084,755
|
|
3,170,212
|
|
3,084,759
|
|
2,925,070
|
|
2,963,018
|
Total stockholders'
equity to total assets
|
|
12.25%
|
|
11.54%
|
|
11.70%
|
|
12.02%
|
|
11.73%
|
Tangible equity to
tangible assets - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
377,768
|
|
$
365,757
|
|
$
360,779
|
|
$
351,521
|
|
$
347,578
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
83,921
|
|
84,676
|
|
85,499
|
|
86,379
|
|
87,583
|
Total tangible common
equity (numerator)
|
|
$
293,847
|
|
$
281,081
|
|
$
275,280
|
|
$
265,142
|
|
$
259,995
|
Tangible
assets:
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
3,084,755
|
|
3,170,212
|
|
3,084,759
|
|
2,925,070
|
|
2,963,018
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
83,921
|
|
84,676
|
|
85,499
|
|
86,379
|
|
87,583
|
Total tangible assets
(denominator)
|
|
$
3,000,834
|
|
$
3,085,536
|
|
$
2,999,260
|
|
$
2,838,691
|
|
$
2,875,435
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
|
9.79%
|
|
9.11%
|
|
9.18%
|
|
9.34%
|
|
9.04%
|
View original
content:https://www.prnewswire.com/news-releases/spirit-of-texas-bancshares-inc-reports-second-quarter-2021-financial-results-301338891.html
SOURCE Spirit of Texas Bancshares, Inc.