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%
|
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.