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

CONROE, Texas, April 21, 2021 /PRNewswire/ -- Spirit of Texas Bancshares, Inc. (NASDAQ: STXB) ("Spirit," the "Company," "we," "our," or "us"), reported net income of $10.1 million in the first quarter of 2021, representing diluted earnings per share of $0.58, compared to net income of $4.1 million in the first quarter of 2020, representing diluted earnings per share of $0.22.  Strong financial results for the first quarter of 2021 were assisted by $1.8 million net accretion of origination fees on Paycheck Protection Program ("PPP") loans, and $2.2 million of deferred costs on newly originated PPP loans.

First Quarter 2021 Financial and Operational Highlights

  • Originated 1,301 PPP loans during the first quarter of 2021 with a total funded amount of $148.9 million and deferred loan fees, net of $4.8 million which will be recognized over the life of the loans.
  • Net interest margin for the first quarter of 2021 as reported and on a tax equivalent basis(1) was 3.94% and 3.98%, respectively.
  • At March 31, 2021, return on average assets was 1.32% annualized.
  • Book value per share increased to $21.34 at March 31, 2021 and tangible book value per share(1) increased to $16.40 at the same date.
  • At March 31, 2021, total stockholders' equity to total assets was 11.54% and tangible stockholders' equity to tangible assets(1) was 9.11%.  

Dean Bass, Spirit's Chairman and Chief Executive Officer, stated, "We continue to have success assisting our borrowers obtain funding through government stimulus programs.  I am delighted that our customers have placed their faith in our talented group of bankers to help navigate these government programs and obtain critical funding to keep businesses and projects operating.  Our strong results for the first quarter of 2021 were also due to cost cutting initiatives that were implemented towards the end of 2020 and have begun to positively impact our financial results.  We will continuously look for new, exciting investments and expense saving directives to provide for earnings growth in the coming quarters.

"Asset quality has returned to pre-pandemic levels and we believe that quarters with significantly elevated provision expense are behind us.  We will continue to work with the borrowers who need additional assistance due to the ongoing COVID-19 pandemic; however, ultimately we believe that the elevated risk factors appear to be behind us and we can now focus on new growth opportunities," Mr. Bass concluded.

Loan Portfolio and Composition

During the first quarter of 2021, gross loans increased to $2.43 billion as of March 31, 2021, an increase of 1.7% from $2.39 billion as of December 31, 2020, and an increase of 20.7% from $2.0 billion as of March 31, 2020.  During the first quarter of 2021, $60.3 million of the PPP loans we originated during 2020 were forgiven by the U.S. Small Business Administration ("SBA") and we originated $148.9 million of new PPP loans.  Excluding the effect of PPP loan forgiveness and origination, the loan portfolio as of March 31, 2021 declined by $43.6 million, or 7.4% annualized from December 31, 2020.  During the first quarter of 2021, we sold $45.2 million of participations out of our commercial real estate portfolio in order to improve concentration percentages.  The loan pipeline remains strong to fuel future growth in the portfolio and we anticipate higher loan growth in the second and third quarters of 2021.

Asset Quality

Asset quality remained strong in the first quarter of 2021.  Overall, our borrowers continue to recover from the effects of the ongoing COVID-19 pandemic as additional pandemic-related restrictions have been lifted, a meaningful percent of the population in Texas has now been vaccinated, and consumers have received an additional stimulus payment.  The provision for loan losses recorded for the first quarter of 2021 was $1.1 million, which served to increase the allowance to $16.3 million, or 0.67% of the $2.43 billion in gross loans outstanding as of March 31, 2021.    Provision expense for the first quarter of 2021 related primarily to newly impaired loans.

Nonperforming loans to loans held for investment ratio continues to remain low as of March 31, 2021 at 0.41%, which increased from 0.36% at December 31, 2020, and 0.38% as of March 31, 2020.  Annualized net charge-offs were 14 basis points for the first quarter of 2021 compared to 9 basis points for the fourth quarter of 2020.

Borrowers in active deferral periods has declined significantly, with 97% of loans previously on deferment exiting the deferral period and resuming regularly scheduled payments.  At March 31, 2021, only $11.6 million of loans remain on deferral.

Deposits and Borrowings

Deposits totaled $2.60 billion as of March 31, 2021, an increase of 5.6% from $2.46 billion as of December 31, 2020, and an increase of 25.0% from $2.08 billion as of March 31, 2020.  Noninterest-bearing demand deposits increased $72.7 million, or 10.0%, from December 31, 2020, and increased $313.2 million, or 64.3%, from March 31, 2020. The increase in noninterest-bearing deposits is primarily deposit accounts related to PPP loan funding.  Noninterest-bearing demand deposits represented 30.8% of total deposits as of March 31, 2021, up from 29.6% of total deposits as of December 31, 2020, and up from 23.4% of total deposits as of March 31, 2020.  Savings and Money Market deposits increased $43.4 million or 7.1%, from December 31, 2020 primarily due to the seasonality of public funds.  The average cost of deposits was 0.38% for the first quarter of 2021, representing an 8 basis point decrease from the fourth quarter of 2020 and a 54 basis point decrease from the first quarter of 2020.  The decrease in average cost of deposits was due primarily to the repricing of certificates of deposit during the first quarter of 2021.

Borrowings decreased by $61.0 million during the first quarter of 2021 to $191.7 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 6.1% of total assets at March 31, 2021, compared to 8.2% at December 31, 2020 and 4.5% at March 31, 2020.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2021 was 3.94%, a decrease of 42 basis points from the fourth quarter of 2020 and a decrease of 44 basis points from the first quarter of 2020.  The tax equivalent net interest margin(1) for the first quarter of 2021 was 3.98%, a decrease of 46 basis points from the fourth quarter of 2020 and 42 basis points from the first quarter of 2020.  Excluding the impact of PPP loans, the tax equivalent net interest margin for the first quarter of 2021 was 4.02% compared to 4.21% for the fourth quarter of 2020.  The decrease in net interest margin and tax equivalent net interest margin compared to prior year and prior quarter is primarily due to the origination of additional PPP loans which yield 1% and lower levels of forgiveness than those experienced in the fourth quarter of 2020.  Approximately $6.7 million of net deferred fees remain unamortized at March 31, 2021. During the first quarter of 2021, we moved approximately $200 million of cash into higher yielding securities which should help to improve the net interest margin during the second quarter of 2021. The yield on loans for the first quarter of 2021 was 5.09% compared to 5.42% at December 31, 2020.  Excluding the impact of PPP loans, the yield on loans for the first quarter of 2021 was 5.29% compared to 5.30% at December 31, 2020.

Net interest income totaled $27.8 million for the first quarter of 2021, an increase of 17.0% from $23.8 million for the first quarter of 2020.  Interest income totaled $31.2 million for the first quarter of 2021, an increase of 8.2% from $28.8 million for the first quarter of 2020.  Interest and fees on loans decreased $2.9 million, or 8.8%, compared to the fourth quarter of 2020, and increased by $2.4 million, or 8.8%, from the first quarter of 2020.  Interest expense was $3.3 million for the first quarter of 2021, a decrease of 12.9% from $3.8 million for the fourth quarter of 2020 and a decrease of 33.6% from $5.0 million for the first quarter of 2020. 

Noninterest Income and Noninterest Expense

Noninterest income totaled $2.6 million for the first quarter of 2021, compared to $8.8 million for the fourth quarter of 2020.  This decrease was primarily driven by declines in gain on sale of SBA loans, service charges and fees, and mortgage referral fees of $264 thousand, $120 thousand, and $73 thousand, respectively, partially offset by an increase in SBA servicing fees of $17 thousand.  Gain on sale of loans originated through the Main Street Lending Program (the "Main Street Loans") in the fourth quarter of 2020 of $3.6 million was also nonrecurring given that the program ended during the early first quarter of 2021.  Additionally, swap fees were $121 thousand for the first quarter of 2021, compared to $2.4 million for the fourth quarter of 2020. 

Noninterest expense totaled $16.6 million in the first quarter of 2021, a decrease of 9.7 % from $18.4 million in the fourth quarter of 2020, primarily due to a decrease in salaries and benefits. The decrease in salaries and benefits was primarily due to deferred costs on PPP loan origination of $2.2 million. 

The efficiency ratio was 54.6% in the first quarter of 2021, compared to 47.7% in the fourth quarter of 2020, and 79.1% in the first quarter of 2020.  The first quarter of 2021 efficiency ratio was assisted by PPP origination fees immediately recognized at the time of forgiveness by the SBA, and the deferral of salary costs associated with newly originated PPP loans.




(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 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 first quarter 2021 results, which will be broadcast live over the Internet, on Thursday, April 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 April 29, 2021, and may be accessed by dialing 201-612-7415 and using pass code 13718707#. 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 38 locations in the Houston, Dallas/Fort Worth, Bryan/College Station, Austin, San Antonio-New Braunfels, Corpus Christi, Austin 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 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, 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




March 31, 2021


December 31, 2020


September 30, 2020


June 30, 2020


March 31, 2020






(Dollars in thousands, except per share data)


Interest income:












Interest and fees on loans


$                               29,829


$                               32,682


$                               29,901


$                               29,912


$                               27,409


Interest and dividends on investment securities


1,115


914


465


457


504


Other interest income


225


101


115


185


900


Total interest income


31,169


33,697


30,481


30,554


28,813


Interest expense:












Interest on deposits


2,327


2,726


3,392


3,945


4,507


Interest on FHLB advances and other borrowings


1,003


1,099


875


558


508


Total interest expense


3,330


3,825


4,267


4,503


5,015


Net interest income


27,839


29,872


26,214


26,051


23,798


Provision for loan losses


1,086


4,417


2,831


2,838


1,171


Net interest income after provision for loan losses


26,753


25,455


23,383


23,213


22,627


Noninterest income:












Service charges and fees


1,434


1,554


1,525


1,270


1,311


SBA loan servicing fees, net


324


307


619


256


10


Mortgage referral fees


274


347


428


357


202


Gain on sales of loans, net


155


419


612


326


464


Gain (loss) on sales of investment securities


5


-


1,031


-


-


Other noninterest income


427


6,153


604


356


725


Total noninterest income


2,619


8,780


4,819


2,565


2,712


Noninterest expense:












Salaries and employee benefits


9,220


10,656


11,365


7,946


11,789


Occupancy and equipment expenses


2,662


2,749


2,222


2,761


2,315


Professional services


524


521


555


716


895


Data processing and network


1,229


1,379


1,002


849


743


Regulatory assessments and insurance


535


549


517


379


402


Amortization of intangibles


823


879


919


919


946


Advertising


78


74


333


119


153


Marketing


93


60


18


38


160


Telephone expense


499


560


563


483


407


Conversion expense


-


16


279


69


1,477


Other operating expenses


971


984


1,520


1,825


1,673


Total noninterest expense


16,634


18,427


19,293


16,104


20,960


Income before income tax expense


12,738


15,808


8,909


9,674


4,379


Income tax expense


2,652


3,353


1,821


1,980


305


Net income


$                               10,086


$                               12,455


$                                 7,088


$                                 7,694


$                                 4,074
















 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Unaudited)




















As of






March 31,
 2021


December 31,
 2020


September 30,
2020


June 30,
2020


March 31,
2020






(Dollars in thousands)

Assets:













Cash and due from banks


$           28,879


$           31,396


$               29,345


$               35,248


$               33,946

Interest-bearing deposits in other banks


40,687


231,638


121,739


200,096


193,707



Total cash and cash equivalents


69,566


263,034


151,084


235,344


227,653

Time deposits in other banks


-


-


-


-


245

Investment securities:












Available for sale securities, at fair value


442,576


212,420


119,814


90,878


94,963


Equity investments, at fair value


23,741


24,000


-


-


-



Total investment securities


466,317


236,420


119,814


90,878


94,963

Loans held for sale





1,192


1,470


4,287


7,718


7,765

Loans:













Loans held for investment


2,430,594


2,388,532


2,452,353


2,427,292


2,013,367

Less: allowance for loan and lease losses


(16,314)


(16,026)


(12,207)


(9,905)


(7,620)


Loans, net




2,414,280


2,372,506


2,440,146


2,417,387


2,005,747

Premises and equipment, net


81,379


83,348


82,734


79,156


78,594

Accrued interest receivable


10,588


11,199


11,612


12,188


7,314

Other real estate owned and repossessed assets


-


133


302


3,743


3,731

Goodwill




77,681


77,681


77,681


77,966


79,009

Core deposit intangible


6,995


7,818


8,698


9,617


10,536

SBA servicing asset


2,821


2,953


3,051


3,115


3,055

Deferred tax asset, net


2,213


1,085


494


-


-

Bank-owned life insurance


16,057


15,969


15,878


15,787


15,699

Federal Home Loan Bank and other bank stock, at cost


5,727


5,718


5,709


5,696


5,660

Right of use assets


6,058


-


-


-


-

Other assets



9,338


5,425


3,580


4,423


4,526



Total assets


$      3,170,212


$      3,084,759


$          2,925,070


$          2,963,018


$          2,544,497

Liabilities and Stockholders' Equity











Liabilities:












Deposits:














Transaction accounts:












Noninterest-bearing


$         800,233


$         727,543


$             667,199


$             745,646


$             487,060


Interest-bearing


1,149,781


1,092,934


940,930


946,969


878,279



Total transaction accounts


1,950,014


1,820,477


1,608,129


1,692,615


1,365,339


Time deposits


647,536


638,658


679,387


722,376


711,968



Total deposits


2,597,550


2,459,135


2,287,516


2,414,991


2,077,307

Accrued interest payable


1,160


1,303


1,321


1,025


1,218

Short-term borrowings


-


10,000


10,000


104,830


10,000

Long-term borrowings


191,687


242,020


267,746


88,246


103,276

Deferred tax liability, net


-


-


-


405


1,706

Operating lease liability


6,231


-


-


-


-

Other liabilities


7,827


11,522


6,966


5,943


5,173



Total liabilities


2,804,455


2,723,980


2,573,549


2,615,440


2,198,680

Stockholders' Equity:











Common stock



300,591


298,850


298,509


298,176


297,966

Retained earnings


85,246


76,683


65,783


59,907


52,213

Accumulated other comprehensive income (loss)


(3,225)


1,005


(237)


1,272


732

Treasury stock


(16,855)


(15,759)


(12,534)


(11,777)


(5,094)



Total stockholders' equity


365,757


360,779


351,521


347,578


345,817



Total liabilities and stockholders' equity


$      3,170,212


$      3,084,759


$          2,925,070


$          2,963,018


$          2,544,497

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Loan Composition

(Unaudited)

























As of



March 31,
2021


December 31,
2020


September 30, 2020


June 30,
2020


March 31,
2020



(Dollars in thousands)

Loans:











Commercial and industrial loans (1)(2)


$                        699,896


$                        574,986


$                        690,009


$                        717,280


$                        320,418

Real estate:











1-4 single family residential loans


348,908


364,139


373,220


372,445


382,900

Construction, land and development loans


344,557


415,488


402,476


390,068


405,661

Commercial real estate loans (including multifamily)


964,342


956,743


906,134


843,247


821,952

Consumer loans and leases


9,619


11,738


12,977


19,159


22,398

Municipal and other loans


63,272


65,438


67,537


85,092


60,038

Total loans held in portfolio


$                     2,430,594


$                     2,388,532


$                     2,452,353


$                     2,427,292


$                     2,013,367












(1) Balance includes $67.4 million, $70.8 million, $72.7 million, $75.1 million, and $75.3 million of the unguaranteed portion of SBA loans as of March 31, 2021 December 31, 2020, September 30, 2020, 

June 30, 2020, and March 31, 2020, respectively.











(2) Balance includes $366.5 million, $276.1 million, $421.1 million, and $384.6 million of PPP loans as of 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



March 31,
2021


December 31,
2020


September 30, 2020


June 30,
2020


March 31,
2020







(Dollars in thousands)

Deposits:











Noninterest-bearing demand deposits


$                        800,233


$                        727,543


$                        667,199


$                        745,646


$                        487,060

Interest-bearing demand deposits


485,863


472,075


391,396


360,282


334,302

Interest-bearing NOW accounts


9,904


10,288


8,655


31,132


28,376

Savings and money market accounts


654,014


610,571


540,879


555,555


515,601

Time deposits


647,536


638,658


679,387


722,376


711,968

Total deposits


$                     2,597,550


$                     2,459,135


$                     2,287,516


$                     2,414,991


$                     2,077,307

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)
















Three Months Ended 



March 31, 2021


March 31, 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


$       150,583


$               76


0.20%


$       231,616


$             852


1.48%

Loans, including loans held for sale (2)


2,376,657


29,829


5.09%


1,851,879


27,409


5.94%

Investment securities and other


339,859


1,264


1.51%


96,006


552


2.31%

Total interest-earning assets


2,867,099


31,169


4.41%


2,179,501


28,813


5.30%

Noninterest-earning assets


234,544






217,060





Total assets


$    3,101,643






$    2,396,561





Interest-bearing liabilities:













Interest-bearing demand deposits


$       469,287


$             155


0.13%


$       335,669


$             225


0.27%

Interest-bearing NOW accounts


10,232


1


0.04%


27,632


26


0.38%

Savings and money market accounts


634,828


657


0.42%


443,449


1,012


0.92%

Time deposits


643,906


1,514


0.95%


685,689


3,244


1.90%

FHLB advances and other borrowings


213,483


1,003


1.91%


86,809


508


2.35%

Total interest-bearing liabilities


1,971,736


3,330


0.68%


1,579,248


5,015


1.27%

Noninterest-bearing liabilities and
shareholders' equity:













Noninterest-bearing demand deposits


748,785






459,156





Other liabilities


19,072






12,265





Stockholders' equity


362,050






345,892





Total liabilities and stockholders' equity


$    3,101,643






$    2,396,561





Net interest rate spread






3.72%






4.03%

Net interest income and margin




$        27,839


3.94%




$        23,798


4.38%

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



$        28,168


3.98%




$        23,890


4.40%














(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 March 31, 2021 and December 31, 2020, respectively.







 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)
















Three Months Ended



March 31, 2021


December 31, 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


150,583


$               76


0.20%


$       144,349


$             101


0.28%

Loans, including loans held for sale (2)


2,376,657


29,829


5.09%


2,394,431


32,682


5.42%

Investment securities and other


339,859


1,264


1.51%


177,816


914


2.04%

Total interest-earning assets


2,867,099


31,169


4.41%


2,716,596


33,697


4.92%

Noninterest-earning assets


234,544






274,170





Total assets


$    3,101,643






$    2,990,766





Interest-bearing liabilities:













Interest-bearing demand deposits


$       469,287


$             155


0.13%


$       413,956


$             156


0.15%

Interest-bearing NOW accounts


10,232


1


0.04%


9,510


2


0.08%

Savings and money market accounts


634,828


657


0.42%


580,216


648


0.44%

Time deposits


643,906


1,514


0.95%


657,726


1,920


1.16%

FHLB advances and other borrowings


213,483


1,003


1.91%


263,486


1,099


1.65%

Total interest-bearing liabilities


1,971,736


3,330


0.68%


1,924,894


3,825


0.79%

Noninterest-bearing liabilities and
shareholders' equity:













Noninterest-bearing demand deposits


748,785






702,250





Other liabilities


19,072






7,722





Stockholders' equity


362,050






355,900





Total liabilities and stockholders' equity


$    3,101,643






$    2,990,766





Net interest rate spread






3.72%






4.13%

Net interest income and margin




$        27,839


3.94%




$        29,872


4.36%

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



$        28,168


3.98%




$        30,384


4.44%














(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 March 31, 2021 and December 31, 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





March 31, 2021


December 31, 2020


September 30, 2020


June 30, 2020


March 31, 2020



(Dollars in thousands, except per share data)



Basic and diluted earnings per share - GAAP basis:











Net income available to common stockholders


$            10,086


$                   12,455


$                      7,088


$           7,694


$                                 4,074

Weighted average number of common shares - basic


17,103,981


17,168,091


17,340,898


17,581,959


18,184,110

Weighted average number of common shares - diluted


17,518,029


17,336,484


17,383,427


17,612,919


18,441,977

Basic earnings per common share


$                0.59


$                       0.73


$                        0.41


$             0.44


$                                   0.22

Diluted earnings per common share


$                0.58


$                       0.72


$                        0.41


$             0.44


$                                   0.22

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











Net income


$            10,086


$                   12,455


$                      7,088


$           7,694


$                                 4,074

Pre-tax adjustments:











Noninterest income











Gain on sale of investment securities


(5)


-


(1,031)


-


-

Noninterest expense











Merger related expenses


-


24


342


69


1,614

Taxes:











   NOL Carryback


-






-


(575)

Tax effect of adjustments


1


(5)


145


(14)


(331)

Adjusted net income


$            10,082


$                   12,474


$                      6,544


$           7,749


$                                 4,782

Weighted average number of common shares - basic


17,103,981


17,168,091


17,340,898


17,581,959


18,184,110

Weighted average number of common shares - diluted


17,518,029


17,336,484


17,383,427


17,612,919


18,441,977

Basic earnings per common share - Non-GAAP basis


$                0.59


$                       0.73


$                        0.38


$             0.44


$                                   0.26

Diluted earnings per common share - Non-GAAP basis


$                0.58


$                       0.72


$                        0.38


$             0.44


$                                   0.26

 

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



March 31, 2021


December 31, 2020


September 30, 2020


June 30, 2020


March 31, 2020



(Dollars in thousands, except per share data)

Net interest margin - GAAP basis:











Net interest income


$                           27,839


$                           29,872


$                           26,214


$                           26,051


$                           23,798

Average interest-earning assets


2,867,099


2,716,596


2,664,355


2,646,903


2,179,501

Net interest margin


3.94%


4.36%


3.90%


3.95%


4.38%

Net interest margin - Non-GAAP basis:











Net interest income


$                           27,839


$                           29,872


$                           26,214


$                           26,051


$                           23,798

Plus:











Impact of fully taxable equivalent adjustment


329


512


446


373


92

Net interest income on a fully taxable equivalent basis


$                           28,168


$                           30,384


$                           26,660


$                           26,424


$                           23,890

Average interest-earning assets


2,867,099


2,716,596


2,664,355


2,646,903


2,179,501

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


3.98%


4.44%


3.97%


4.00%


4.40%

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

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

(Unaudited)














As of



March 31, 2021


December 31, 2020


September 30, 2020


June 30, 2020


March 31, 2020



(Dollars in thousands, except per share data)

Total stockholders' equity


$                      365,757


$                      360,779


$                      351,521


$                      347,578


$                      345,817

Less:











Goodwill and other intangible assets


84,676


85,499


86,379


87,583


89,595

Tangible stockholders' equity


$                      281,081


$                      275,280


$                      265,142


$                      259,995


$                      256,272

Shares outstanding


17,136,553


17,081,831


17,316,313


17,368,573


17,969,012

Book value per share


$                          21.34


$                          21.12


$                          20.30


$                          20.01


$                          19.25

Less:











Goodwill and other intangible assets per share


$                            4.94


$                            5.01


$                            4.99


5.04


4.99

Tangible book value per share


$                          16.40


$                          16.11


$                          15.31


$                          14.97


$                          14.26

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

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

(Unaudited)














As of 



March 31, 2021


December 31, 2020


September 30, 2020


June 30, 2020


March 31, 2020



(Dollars in thousands)

Total stockholders' equity to total assets - GAAP basis:











Total stockholders' equity (numerator)


$                        365,757


$                        360,779


$                        351,521


$                        347,578


$                        345,817

Total assets (denominator)


3,170,212


3,084,759


2,925,070


2,963,018


2,544,497

Total stockholders' equity to total assets


11.54%


11.70%


12.02%


11.73%


13.59%

Tangible equity to tangible assets - Non-GAAP basis:











Tangible equity:











Total stockholders' equity


$                        365,757


$                        360,779


$                        351,521


$                        347,578


$                        345,817

Less:











Goodwill and other intangible assets


84,676


85,499


86,379


87,583


89,545

Total tangible common equity (numerator)


$                        281,081


$                        275,280


$                        265,142


$                        259,995


$                        256,272

Tangible assets:











Total assets


3,170,212


3,084,759


2,925,070


2,963,018


2,544,497

Less:











Goodwill and other intangible assets


84,676


85,499


86,379


87,583


89,545

Total tangible assets (denominator)


$                     3,085,536


$                     2,999,260


$                     2,838,691


$                     2,875,435


$                     2,454,952












Tangible equity to tangible assets


9.11%


9.18%


9.34%


9.04%


10.44%

 

Cision View original content:http://www.prnewswire.com/news-releases/spirit-of-texas-bancshares-inc-reports--first-quarter-2021-financial-results-301274216.html

SOURCE Spirit of Texas Bancshares, Inc.

« Back to View All News