Spirit of Texas Bancshares, Inc. Reports Second Quarter 2021 Financial Results

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%

 

Cision 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.