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.
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(1)
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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:
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Dennard Lascar
Investor Relations
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Ken Dennard / Natalie
Hairston
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(713)
529-6600
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STXB@dennardlascar.com
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SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
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|
Consolidated
Statements of Income
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|
|
(Unaudited)
|
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|
|
|
|
|
|
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|
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
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|
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
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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
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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
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Occupancy and
equipment expenses
|
|
2,749
|
|
2,222
|
|
|
2,761
|
|
2,315
|
|
2,222
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Professional
services
|
|
521
|
|
555
|
|
|
716
|
|
895
|
|
1,200
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Data processing and
network
|
|
1,379
|
|
1,002
|
|
|
849
|
|
743
|
|
936
|
Regulatory
assessments and insurance
|
|
549
|
|
517
|
|
|
379
|
|
402
|
|
265
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Amortization of
intangibles
|
|
879
|
|
919
|
|
|
919
|
|
946
|
|
1,006
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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
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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
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|
17,340,898
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|
|
17,581,959
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|
15,370,480
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|
17,434,954
|
Diluted
|
|
17,336,484
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|
17,383,427
|
|
|
17,612,919
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|
15,771,249
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|
17,830,538
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SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Consolidated
Balance Sheets
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(Unaudited)
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As
of
|
|
|
|
|
|
December 31,
2020
|
|
September
30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December 31,
2019
|
|
|
|
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(Dollars in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
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|
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%
|
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.