Spirit of Texas Bancshares, Inc. Reports Record Fourth Quarter 2020 Financial Results

CONROE, Texas, Jan. 25, 2021 /PRNewswire/ -- Spirit of Texas Bancshares, Inc. (NASDAQ: STXB) ("Spirit", the "Company", "we", "our", or "us"), reported net income of $12.5 million in the fourth quarter of 2020, representing diluted earnings per share of $0.72, compared to net income of $6.2 million in the fourth quarter of 2019, representing diluted earnings per share of $0.35. Record financial results for the fourth quarter of 2020 were assisted by $4.5 million net accretion of origination fees on Paycheck Protection Program ("PPP") loans, and $3.7 million gain on sale of Main Street Lending Program ("Main Street") loans, offset by increased provision expense for potential loan losses related to the COVID-19 pandemic.

Fourth Quarter 2020 Financial and Operational Highlights

  • Net interest margin for the fourth quarter of 2020 as reported and on a tax equivalent basis(1) was 4.36% and 4.44%, respectively.
  • At December 31, 2020, return on average assets was 1.65% annualized.
  • Increased quarterly cash dividend to $0.09 per share
  • Capital remained strong with a Tier 1 leverage ratio of 10.30% at Spirit of Texas Bank, SSB (the "Bank") and 9.90% at the Company on a consolidated basis at December 31, 2020.
  • Book value per share increased to $21.12 at December 31, 2020 and tangible book value per share(1) increased to $16.11 at the same date.
  • At December 31, 2020, total stockholders' equity to total assets was 11.69% and tangible stockholders' equity to tangible assets(1) was 9.18%.
  • Successfully completed the sale of the Bank's Clear Lake branch to Moody National Bank.

Dean Bass, Spirit's Chairman and Chief Executive Officer, stated, "I am incredibly proud of the Spirit of Texas team for achieving these outstanding 2020 results.  Throughout 2020, we have been able to execute across all functions and at all levels to navigate through an extremely tough environment.  Despite the challenges, we have set records during the quarter and fiscal year with respect to nearly all of our financial and operational goals.  We continue to make strength and stability our first priority so that we can be prepared for potential growth opportunities in 2021.

"With asset quality, liquidity, and capital in strong and stable positions, we believe that we are well-situated to return to the growth trajectory we enjoyed prior to the COVID-19 pandemic.  We will look for new opportunities, organically and through strategic partnerships, in a continued effort to increase value for our shareholders," Mr. Bass concluded.

Loan Portfolio and Composition

During the fourth quarter of 2020, gross loans declined to $2.39 billion as of December 31, 2020, a decrease of 2.5% from $2.45 billion as of September 30, 2020, and an increase of 35.3% from $1.77 billion as of December 31, 2019.   During the fourth quarter of 2020, $150.8 million of the PPP loans we originated were forgiven.  Excluding the effect of PPP loan forgiveness, the loan portfolio grew by $88.7 million, or 14.3% annualized. We continue to enjoy a robust loan pipeline and remain committed to lending through new and existing government programs and satisfying the funding needs of customers in the markets we serve. 

The vast majority of our loan customers continue to show signs of recovery from the COVID-19 pandemic, as demonstrated by the significant decline of loans for which we had granted deferrals.  We continue to monitor industries that have experienced more lasting effects from the COVID-19 pandemic. Hospitality remains our primary focus; however, our total exposure in this segment represents only $100.6 million or 4.2% of our total loan portfolio. At December 31, 2020, approximately $16.5 million of hospitality loans remain on deferment periods that will expire during the first quarter of 2021. Direct and indirect oil and gas exposure is an additional focal point representing $80.3 million or 3.4% of our total loan portfolio.  Restaurants and retail centers continue to show signs of improvement and should benefit from additional stimulus programs that are expected to be forthcoming in the first quarter of 2021. 

Asset Quality

Asset quality remained strong in the fourth quarter of 2020. We believe we now have a much clearer picture of our borrowers' ability to pay as agreed and have appropriately adjusted risk ratings and qualitative factors.  Downgrades and increases in impaired loans continue to appear to be due to borrower specific events and not systemic weakness in any particular industry. The provision for loan losses recorded for the fourth quarter of 2020 was $4.4 million, which served to increase the allowance to $16.0 million, or 0.67% of the $2.39 billion in gross loans outstanding as of December 31, 2020. The coverage ratio on the organic portfolio was 1.04% of the $1.49 billion in organic loans outstanding, excluding PPP loans which are fully guaranteed by the U.S. Small Business Administration ("SBA") and not reserved for as of December 31, 2020. The majority of the provision expense for the fourth quarter of 2020 related to risk rate downgrades and impaired loans.

Nonperforming loans to loans held for investment ratio continues to remain low as of December 31, 2020 at 0.36% which was unchanged from September 30, 2020, and 0.37% as of December 31, 2019. Annualized net charge-offs were 9 basis points for the fourth quarter of 2020, compared to 14 basis points for the fourth quarter of 2019.

During 2020, we had approved deferrals associated with loans with an unpaid principal balance of approximately $545.8 million.  Approximately $458.9 million, or 84.1%, of approved deferrals have exited the 90 day deferral period, and resumed regularly scheduled payments. Loans in second and third deferment periods were $52.7 million and $12.8 million, respectively at December 31, 2020.

Deposits and Borrowings

Deposits totaled $2.46 billion as of December 31, 2020, an increase of 7.5% from $2.29 billion as of September 30, 2020, and an increase of 27.5% from $1.93 billion as of December 31, 2019.  Noninterest-bearing demand deposits increased $60.3 million, or 9.0%, from September 30, 2020, and increased $282.7 million, or 63.6%, from December 31, 2019. The increase in noninterest-bearing deposits is primarily deposits related to the Main Street Lending Program. Noninterest-bearing demand deposits represented 29.6% of total deposits as of December 31, 2020, up from 29.2% of total deposits as of September 30, 2020, and up from 23.1% of total deposits as of December 31, 2019.  Savings and Money Market deposits increased $69.7 million or 12.9%, from September 30, 2020 primarily due to movement out of time deposits into Money Market accounts. The average cost of deposits was 0.46% for the fourth quarter of 2020, representing a 12 basis point decrease from the third quarter of 2020 and a 52 basis point decrease from the fourth quarter of 2019. The decrease in average cost of deposits was due primarily to the repricing of certificates of deposit during the quarter.

Borrowings decreased by $25.0 million during the fourth quarter of 2020 to $252.7 million due primarily to repayment of advances under the Paycheck Protection Program Liquidity Facility with the Board of Governors of the Federal Reserve System. Borrowings totaled 8.2% of total assets at December 31, 2020, compared to 9.5% at September 30, 2020 and 4.4% at December 31, 2019.

Net Interest Margin and Net Interest Income

The net interest margin for the fourth quarter of 2020 was 4.36%, an increase of 46 basis points from the third quarter of 2020 and a decrease of 4 basis points from the fourth quarter of 2019. The tax equivalent net interest margin(1) for the fourth quarter of 2020 was 4.44%, an increase of 47 basis points from the third quarter of 2020 and 1 basis point from the fourth quarter of 2019.  The increase from the third quarter of 2020 is due primarily to net accretion of deferred origination fees over deferred origination costs associated with PPP loan forgiveness.  At the time of forgiveness the remaining net fee is recognized immediately.  Excluding the impact of PPP loans, net interest margin and tax equivalent net interest margin for the fourth quarter of 2020 were 4.13% and 4.21%, respectively.  Approximately $3.3 million of net deferred fees remain unamortized at December 31, 2020.

Net interest income totaled $29.9 million for the fourth quarter of 2020, an increase of 35.0% from $22.2 million for the fourth quarter of 2019.  Interest income totaled $33.7 million for the fourth quarter of 2020, an increase of 24.5% from $27.1 million for the fourth quarter of 2019.  Interest and fees on loans increased $2.8 million, or 9.3%, compared to the third quarter of 2020, and increased by $7.5 million, or 29.9%, from the fourth quarter of 2019. Interest expense was $3.8 million for the fourth quarter of 2020, a decrease of 10.4% from $4.3 million for the third quarter of 2020 and a decrease of 21.1% from $4.9 million for the fourth quarter of 2019. 

Noninterest Income and Noninterest Expense

Noninterest income totaled $8.8 million for the fourth quarter of 2020, compared to $4.8 million for the third quarter of 2020. Gain on sale of Main Street loans represented $3.7 million of the $4.0 million increase. Additionally, swap fees were $2.4 million for the fourth quarter of 2020, compared to $494 thousand for the third quarter of 2020.  These increases were offset by declines in gain on sale of SBA loans, SBA servicing fees, and mortgage referral fees of $312 thousand, $81 thousand, and $193 thousand, respectively.

Noninterest expense totaled $18.4 million in the fourth quarter of 2020, a decrease of 4.5% from $19.3 million in the third quarter of 2020, primarily due to a decrease in salaries and benefits. The decrease in salaries and benefits was primarily due to the core system conversion associated with the acquisition of Citizens State Bank, which was completed in July 2020 and allowed for the elimination of headcount redundancies. 

The efficiency ratio was 47.7% in the fourth quarter of 2020, compared to 62.2% in the third quarter of 2020, and 68.4% in the fourth quarter of 2019. The fourth quarter efficiency ratio was assisted by increased swap fees, PPP origination fees immediately recognized at the time of forgiveness, and gain on sale of Main Street loans.

Subsequent Events

On January 8, 2021, we completed the previously announced sale of our Jacksboro branch location to First State Bank of Graham, Texas (the "Jacksboro Branch Sale"). The Jacksboro Branch Sale resulted in the sale of loans of approximately $3.5 million, deposits of approximately $5.7 million and the real property on which the branch was located.







(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.  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 has scheduled a conference call to discuss its fourth quarter 2020 results, which will be broadcast live over the Internet, on Tuesday, January 26, 2020 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 February 2, 2021, and may be accessed by dialing 201-612-7415 and using pass code 13715026#. 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, provides a wide range of relationship-driven commercial banking products and services tailored to meet the needs of businesses, professionals and individuals.  Spirit of Texas Bank has 36 locations in the Houston, Dallas/Fort Worth, Bryan/College Station, Austin, San Antonio, 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 expectations, beliefs, plans, predictions, protections, 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 or economic conditions, or competition; (ii) the impact of the 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, 2019, filed with the U.S. Securities and Exchange Commission (the "SEC") on March 16, 2020, our Quarterly Reports on Form 10-Q and our other filings with the SEC.

While forward-looking statements reflect our good-faith beliefs, 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





December 31, 2020


September 30, 2020



June 30, 2020


March 31, 2020


December 31, 2019





(Dollars in thousands, except per share data)



Interest income:












Interest and fees on loans


$                               32,682


$                               29,901



$                               29,912


$                               27,409


$                    25,160

Interest and dividends on investment securities


914


465



457


504


997

Other interest income


101


115



185


900


918

Total interest income


33,697


30,481



30,554


28,813


27,075

Interest expense:












Interest on deposits


2,726


3,392



3,945


4,507


4,434

Interest on FHLB advances and other borrowings


1,099


875



558


508


416

Total interest expense


3,825


4,267



4,503


5,015


4,850

Net interest income


29,872


26,214



26,051


23,798


22,225

Provision for loan losses


4,417


2,831



2,838


1,171


775

Net interest income after provision for loan losses


25,455


23,383



23,213


22,627


21,450

Noninterest income:












Service charges and fees


1,554


1,525



1,270


1,311


1,146

SBA loan servicing fees, net


307


619



256


10


391

Mortgage referral fees


347


428



357


202


232

Gain on sales of loans, net


419


612



326


464


675

Gain (loss) on sales of investment securities


-


1,031



-


-


2,448

Other noninterest income


6,153


604



356


725


162

Total noninterest income


8,780


4,819



2,565


2,712


5,054

Noninterest expense:












Salaries and employee benefits


10,656


11,365



7,946


11,789


10,684

Occupancy and equipment expenses


2,749


2,222



2,761


2,315


2,222

Professional services


521


555



716


895


1,200

Data processing and network


1,379


1,002



849


743


936

Regulatory assessments and insurance


549


517



379


402


265

Amortization of intangibles


879


919



919


946


1,006

Advertising


74


333



119


153


225

Marketing


60


18



38


160


131

Telephone expense


560


563



483


407


226

Conversion expense


16


279



69


1,477


180

Other operating expenses


984


1,520



1,825


1,673


1,584

Total noninterest expense


18,427


19,293



16,104


20,960


18,659

Income before income tax expense


15,808


8,909



9,674


4,379


7,845

Income tax expense


3,353


1,821



1,980


305


1,676

Net income


$                               12,455


$                                 7,088



$                                 7,694


$                                 4,074


$                      6,169

























Weighted average common shares outstanding: 












Basic


17,168,091


17,340,898



17,581,959


15,370,480


17,434,954

Diluted


17,336,484


17,383,427



17,612,919


15,771,249


17,830,538

 

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Unaudited)




















As of






December 31,
 2020


September 30, 
2020


June 30,
2020


March 31,
2020


December 31,
 2019






(Dollars in thousands)

Assets:













Cash and due from banks


$           31,396


$           29,345


$               35,248


$               33,946


$               32,490

Interest-bearing deposits in other banks


231,638


121,739


200,096


193,707


293,467

               Total cash and cash equivalents


263,034


151,084


235,344


227,653


325,957

Time deposits in other banks


-


-


-


245


490

Investment securities:











          Available for sale securities, at fair value


236,420


119,814


90,878


94,963


96,937

               Total investment securities


236,420


119,814


90,878


94,963


96,937

Loans held for sale





1,470


4,287


7,718


7,765


3,989

Loans:













Loans held for investment


2,390,205


2,452,353


2,427,292


2,013,367


1,767,182

Less: allowance for loan and lease losses


(16,026)


(12,207)


(9,905)


(7,620)


(6,737)

          Loans, net




2,374,179


2,440,146


2,417,387


2,005,747


1,760,445

Premises and equipment, net


83,911


82,734


79,156


78,594


75,150

Accrued interest receivable


11,199


11,612


12,188


7,314


6,507

Other real estate owned and repossessed assets


133


302


3,743


3,731


3,653

Goodwill




77,681


77,681


77,966


79,009


68,503

Core deposit intangible


7,818


8,698


9,617


10,536


11,472

SBA servicing asset


2,953


3,051


3,115


3,055


3,355

Deferred tax asset, net


1,085


494


-


-


-

Bank-owned life insurance


15,969


15,878


15,787


15,699


15,610

Federal Home Loan Bank and other bank stock, at cost


5,718


5,709


5,696


5,660


8,310

Other assets



3,894


3,580


4,423


4,526


4,244

               Total assets


$      3,085,464


$      2,925,070


$          2,963,018


$          2,544,497


$          2,384,622

Liabilities and Stockholders' Equity











Liabilities:












Deposits:













     Transaction accounts:











          Noninterest-bearing


$         727,543


$         667,199


$             745,646


$             487,060


$             444,822

          Interest-bearing


1,092,934


940,930


946,969


878,279


803,557

               Total transaction accounts


1,820,477


1,608,129


1,692,615


1,365,339


1,248,379

     Time deposits


638,658


679,387


722,376


711,968


679,747

               Total deposits


2,459,135


2,287,516


2,414,991


2,077,307


1,928,126

Accrued interest payable


1,303


1,321


1,025


1,218


1,219

Short-term borrowings


10,000


10,000


104,830


10,000


-

Long-term borrowings


242,725


267,746


88,246


103,276


105,140

Deferred tax liability, net


-


-


405


1,706


672

Other liabilities



11,522


6,966


5,943


5,173


3,760

               Total liabilities


2,724,685


2,573,549


2,615,440


2,198,680


2,038,917

Stockholders' Equity:











Common stock



298,850


298,509


298,176


297,966


297,188

Retained earnings


76,683


65,783


59,907


52,213


48,139

Accumulated other comprehensive income (loss)


1,005


(237)


1,272


732


667

Treasury stock



(15,759)


(12,534)


(11,777)


(5,094)


(289)

               Total stockholders' equity


360,779


351,521


347,578


345,817


345,705

               Total liabilities and stockholders' equity


$      3,085,464


$      2,925,070


$          2,963,018


$          2,544,497


$          2,384,622















 

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Loan Composition

(Unaudited)

























As of



December 31,
2020


September 30, 
2020


June 30, 
2020


March 31, 
2020


December 31,
2019



(Dollars in thousands)

Loans:











Commercial and industrial loans (1)(2)


$                        579,772


$                        690,009


$                        724,913


$                        320,418


$                        282,949

Real estate:











1-4 single family residential loans


362,928


373,220


372,445


382,900


375,743

Construction, land and development loans


415,488


402,476


390,068


405,661


259,384

Commercial real estate loans (including multifamily)


954,537


906,134


835,614


821,952


753,812

Consumer loans and leases


12,042


12,977


19,159


22,398


22,769

Municipal and other loans


65,438


67,537


85,092


60,038


72,525

Total loans held in portfolio


$                     2,390,205


$                     2,452,353


$                     2,427,292


$                     2,013,367


$                     1,767,182












(1) Balance includes $69.6 million, $72.7 million, $75.1 million, $75.3 million, and $74.2 million of the unguaranteed portion of SBA loans as of December 31, 2020 September 30, 2020, June 30, 2020, 

March 31, 2020, and December 31, 2019, respectively.











(2) Balance includes $277.8 million of PPP loans as of December 31, 2020.









 

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Deposit Composition

(Unaudited)



























As of



December 31,
2020


September 30, 
2020


June 30, 
2020


March 31,
2020


December 31,
2019







(Dollars in thousands)

Deposits:











Noninterest-bearing demand deposits


$                        727,543


$                        667,199


$                        745,646


$                        487,060


$                        444,822

Interest-bearing demand deposits


472,075


391,396


360,282


334,302


370,467

Interest-bearing NOW accounts


10,288


8,655


31,132


28,376


28,204

Savings and money market accounts


610,571


540,879


555,555


515,601


404,886

Time deposits


638,658


679,387


722,376


711,968


679,747

Total deposits


$                     2,459,135


$                     2,287,516


$                     2,414,991


$                     2,077,307


$                     1,928,126












 

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)
















Three Months Ended
December 31,



2020


2019



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


$       144,349


$             101


0.28%


$       191,822


$             854


1.77%

Loans, including loans held for sale (2)


2,394,431


32,682


5.42%


1,655,206


25,160


6.03%

Investment securities and other


177,816


914


2.04%


156,840


1,061


2.68%

Total interest-earning assets


2,716,596


33,697


4.92%


2,003,868


27,075


5.36%

Noninterest-earning assets


274,170






196,873





Total assets


$    2,990,766






$    2,200,741





Interest-bearing liabilities:













Interest-bearing demand deposits


$       413,956


$             156


0.15%


$       334,819


$             271


0.32%

Interest-bearing NOW accounts


9,510


2


0.08%


21,430


20


0.37%

Savings and money market accounts


580,216


648


0.44%


358,054


890


0.99%

Time deposits


657,726


1,920


1.16%


664,435


3,253


1.94%

FHLB advances and other borrowings


263,486


1,099


1.65%


79,174


416


2.08%

Total interest-bearing liabilities


1,924,894


3,825


0.79%


1,457,912


4,850


1.32%

Noninterest-bearing liabilities and
shareholders' equity:













Noninterest-bearing demand deposits


702,250






421,375





Other liabilities


7,722






3,795





Stockholders' equity


355,900






317,659





Total liabilities and stockholders' equity


$    2,990,766






$    2,200,741





Net interest rate spread






4.13%






4.04%

Net interest income and margin




$        29,872


4.36%




$        22,225


4.40%

Net interest income and margin (tax equivalent)(3)



$        30,384


4.44%




$        22,352


4.43%














(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 December 31, 2020 and 2019, respectively.








 

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)
















Three Months Ended



December 31, 2020


September 30, 2020



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


144,349


$             101


0.28%


$       134,573


$             101


0.30%

Loans, including loans held for sale (2)


2,394,431


32,682


5.42%


2,436,667


29,901


4.87%

Investment securities and other


177,816


914


2.04%


93,115


479


2.04%

Total interest-earning assets


2,716,596


33,697


4.92%


2,664,355


30,481


4.54%

Noninterest-earning assets


274,170






265,462





Total assets


$    2,990,766






$    2,929,817





Interest-bearing liabilities:













Interest-bearing demand deposits


$       413,956


$             156


0.15%


$       375,421


$             176


0.19%

Interest-bearing NOW accounts


9,510


2


0.08%


14,644


7


0.19%

Savings and money market accounts


580,216


648


0.44%


541,681


621


0.45%

Time deposits


657,726


1,920


1.16%


713,618


2,588


1.44%

FHLB advances and other borrowings


263,486


1,099


1.65%


211,214


875


1.64%

Total interest-bearing liabilities


1,924,894


3,825


0.79%


1,856,578


4,267


0.91%

Noninterest-bearing liabilities and
shareholders' equity:













Noninterest-bearing demand deposits


702,250






715,783





Other liabilities


7,722






8,451





Stockholders' equity


355,900






349,005





Total liabilities and stockholders' equity


$    2,990,766






$    2,929,817





Net interest rate spread






4.13%






3.63%

Net interest income and margin




$        29,872


4.36%




$        26,214


3.90%

Net interest income and margin (tax equivalent)(3)



$        30,384


4.44%




$        26,660


3.97%














(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 December 31, 2020 and September 30, 2020, 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



December 31, 2020


September 30, 2020


June 30, 2020


March 31, 2020


December 31, 2019



(Dollars in thousands, except per share data)

Basic and diluted earnings per share - GAAP basis:











Net income available to common stockholders


$                               12,455


$                                 7,088


$                                 7,694


$                                 4,074


$                                 6,169

Weighted average number of common shares - basic


17,168,091


17,340,898


17,581,959


18,184,110


17,434,954

Weighted average number of common shares - diluted


17,336,484


17,383,427


17,612,919


18,441,977


17,830,538

Basic earnings per common share


$                                   0.73


$                                   0.41


$                                   0.44


$                                   0.22


$                                   0.35

Diluted earnings per common share


$                                   0.72


$                                   0.41


$                                   0.44


$                                   0.22


$                                   0.35

Basic and diluted earnings per share - Non-GAAP basis:











Net income


$                               12,455


$                                 7,088


$                                 7,694


$                                 4,074


$                                 6,169

Pre-tax adjustments:











Noninterest income











Gain on sale of investment securities


-


(1,031)


-


-


(2,448)

Noninterest expense











Merger related expenses


24


342


69


1,614


821

Taxes:











   NOL Carryback






-


(575)



Tax effect of adjustments


(5)


145


(14)


(331)


467

Adjusted net income


$                               12,474


$                                 6,544


$                                 7,749


$                                 4,782


$                                 5,009

Weighted average number of common shares - basic


17,168,091


17,340,898


17,581,959


18,184,110


17,434,954

Weighted average number of common shares - diluted


17,336,484


17,383,427


17,612,919


18,441,977


17,830,538

Basic earnings per common share - Non-GAAP basis


$                                   0.73


$                                   0.38


$                                   0.44


$                                   0.26


$                                   0.29

Diluted earnings per common share - Non-GAAP basis


$                                   0.72


$                                   0.38


$                                   0.44


$                                   0.26


$                                   0.28

 

 

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



December 31, 2020


September 30, 2020


June 30, 2020


March 31, 2020


December 31, 2019



(Dollars in thousands, except per share data)

Net interest margin - GAAP basis:











Net interest income


$                           29,872


$                           26,214


$                           26,051


$                           23,798


$                           22,225

Average interst-earning assets


2,716,596


2,664,355


2,646,903


2,179,501


2,003,868

Net interest margin


4.36%


3.90%


3.95%


4.38%


4.40%

Net interest margin - Non-GAAP basis:











Net interest income


$                           29,872


$                           26,214


$                           26,051


$                           23,798


$                           22,225

Plus:











Impact of fully taxable equivalent adjustment


512


446


373


92


127

Net interest income on a fully taxable equivalent basis


$                           30,384


$                           26,660


$                           26,424


$                           23,890


$                           22,352

Average interst-earning assets


2,716,596


2,664,355


2,646,903


2,179,501


2,003,868

Net interest margin on a fully taxable equivalent basis - Non-GAAP basis


4.44%


3.97%


4.00%


4.40%


4.43%

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share

(Unaudited)














As of



December 31, 2020


September 30, 2020


June 30, 2020


March 31, 2020


December 31, 2019



(Dollars in thousands, except per share data)

Total stockholders' equity


$                      360,779


$                      351,521


$                      347,578


$                      345,817


$                      345,705

Less:











Goodwill and other intangible assets


85,499


86,379


87,583


89,545


79,975

Tangible stockholders' equity


$                      275,280


$                      265,142


$                      259,995


$                      256,272


$                      265,730

Shares outstanding


17,081,831


17,316,313


17,368,573


17,969,012


18,258,222

Book value per share


$                          21.12


$                          20.30


$                          20.01


$                          19.25


$                          18.93

Less:











Goodwill and other intangible assets per share


$                            5.01


$                            4.99


$                            5.04


4.99


4.38

Tangible book value per share


$                          16.11


$                          15.31


$                          14.97


$                          14.26


$                          14.55

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures - Tangible Equity to Tangible Assets

(Unaudited)














As of 



December 31, 2020


September 30, 2020


June 30, 2020


March 31, 2020


December 31, 2019



(Dollars in thousands)

Total stockholders' equity to total assets - GAAP basis:











Total stockholders' equity (numerator)


$                        360,779


$                        351,521


$                        347,578


$                        345,817


$                        345,705

Total assets (denominator)


3,085,464


2,925,070


2,963,018


2,544,497


2,384,622

Total stockholders' equity to total assets


11.69%


12.02%


11.73%


13.59%


14.50%

Tangible equity to tangible assets - Non-GAAP basis:











Tangible equity:











Total stockholders' equity


$                        360,779


$                        351,521


$                        347,578


$                        345,817


$                        345,705

Less:











Goodwill and other intangible assets


85,499


86,379


87,583


89,545


79,975

Total tangible common equity (numerator)


$                        275,280


$                        265,142


$                        259,995


$                        256,272


$                        265,730

Tangible assets:











Total assets


3,085,464


2,925,070


2,963,018


2,544,497


2,384,622

Less:











Goodwill and other intangible assets


85,499


86,379


87,583


89,545


79,975

Total tangible assets (denominator)


$                     2,999,965


$                     2,838,691


$                     2,875,435


$                     2,454,952


$                     2,304,647












Tangible equity to tangible assets


9.18%


9.34%


9.04%


10.44%


11.53%

 

Cision View original content:http://www.prnewswire.com/news-releases/spirit-of-texas-bancshares-inc-reports-record-fourth-quarter-2020-financial-results-301214354.html

SOURCE Spirit of Texas Bancshares, Inc.