CONROE, Texas, Oct. 27, 2021 /PRNewswire/ -- Spirit of
Texas Bancshares, Inc. (NASDAQ: STXB) ("Spirit," the "Company,"
"we," "our," or "us"), reported net income of $10.5 million in the third quarter of 2021,
representing diluted earnings per share of $0.59, compared to net income of $7.1 million in the third quarter of 2020,
representing diluted earnings per share of $0.41. Financial results for the third
quarter of 2021 were favorably impacted by $2.2 million net accretion of deferred
origination fees on Paycheck Protection Program ("PPP") loans
forgiven by the U.S. Small Business Administration ("SBA") and
lower provision expense due to improved credit quality of the loan
portfolio.
Third Quarter 2021 Financial and Operational
Highlights
- Excluding the impact of PPP forgiveness, loans held for
investment increased 11.8% annualized for the three months ended
September 30, 2021.
- Net interest margin for the third quarter of 2021 as reported
and on a tax equivalent basis(1) was 3.92% and 4.00%,
respectively.
- Quarterly dividend increased to $0.12 per share from $0.09 per share.
- At September 30, 2021, return on
average assets was 1.33% on an annualized basis.
- Book value per share increased to $22.49 and tangible book value per
share(1) increased to $17.67 at September 30,
2021.
- Total stockholders' equity to total assets was 12.30% and
tangible stockholders' equity to tangible assets(1) was
9.92% at September 30, 2021.
"I would like to commend the Spirit team on another outstanding
quarter of impressive financial and operational results,"
Dean Bass, Spirit's Chairman and
Chief Executive Officer, stated. "We are excited to see the return
of robust loan growth driven by an increased demand for our
portfolio of service offerings. The overall economy continues to
recover, which presents interesting opportunities for organic
growth for Spirit in the short term. Our focus remains on
generating non-interest income through our swap offerings while
reducing non-interest expense as much as possible. We have
completed the restructuring of our SBA department and anticipate
earning premiums on loan sales beginning in the fourth
quarter. These non-interest income streams are expected to
replace the revenue generated from PPP fee income earned during the
current year.
"Third quarter asset quality continued to improve with further
reductions in nonperforming loans and lower charge off activity.
Finally, we are pleased that our capital levels have grown stronger
quarter after quarter, providing Spirit with a clear runway for
growth opportunities in the coming quarters," Mr. Bass
concluded.
Loan Portfolio and Composition
During the third quarter of 2021, gross loans decreased to
$2.25 billion as of September 30, 2021, a decrease of 0.85% from
$2.27 billion as of June 30, 2021, and a decrease of 8.1% from
$2.45 billion as of September 30, 2020. PPP loan forgiveness
which has caused the overall decrease in loans should have less of
an impact in future quarters as we work through a smaller
population of loans seeking forgiveness. Excluding the effect of
PPP loan forgiveness, the loan portfolio as of September 30, 2021 increased by $62.2 million, or 11.8% annualized from
June 30, 2021. We currently see
strong loan demand, which has allowed the current loan pipeline to
remain at historically elevated levels. We anticipate robust
loan growth in the fourth quarter and still expect to achieve our
year over year growth target of 8% to 12%.
Asset Quality
Asset quality continues to strengthen with loans migrating into
lower risk ratings during the third quarter of 2021 and with
non-performing loans declining $1.3
million or 16.7% from the second quarter of 2021.
Economic activity continues to improve and despite supply and
labor shortages the majority of our borrowers have fully recovered
from the COVID-19 pandemic. The provision for loan losses
recorded for the third quarter of 2021 was $306 thousand, which served to decrease the
allowance to $16.3 million, or 0.72%
of the $2.25 billion in gross loans
outstanding as of September 30, 2021.
Provision expense for the third quarter of 2021 related primarily
to the provisioning of new loans.
As of September 30, 2021, the
nonperforming loans to loans held for investment ratio remains low
at 0.28%, which decreased from 0.33% at June
30, 2021, and decreased from 0.36% as of September 30, 2020. Annualized net
charge-offs were 10 basis points for the third quarter of 2021
compared to 20 basis points for the second quarter of 2021.
Deposits and Borrowings
Deposits totaled $2.67 billion as
of September 30, 2021, an increase of
3.8% from $2.57 billion as of
June 30, 2021, and an increase of
16.8% from $2.29 billion as of
September 30, 2020.
Noninterest-bearing demand deposits decreased $4.6 million, or 0.59%, from June 30, 2021, and increased $100.2 million, or 15.0%, from September
30, 2020. Noninterest-bearing demand deposits represented
28.7% of total deposits as of September 30, 2021, down from
30.0% of total deposits as of June 30,
2021, and down from 29.2% of total deposits as of September
30, 2020. Interest-bearing demand deposits as of
September 30, 2021 increased
$35.3 million, or 6.7%, from
June 30, 2021, primarily due to
increases in balances associated with accounts opened in
conjunction with the PPP and Main Street Lending Program authorized
by the Coronavirus Aid, Relief, and Economic Security Act (the
"CARES Act") and established by the Board of Governors of the
Federal Reserve System (the "Federal Reserve") in response to the
COVID-19 pandemic. Savings and money market accounts as of
September 30, 2021 increased
$91.2 million, or 14.0%, from
June 30, 2021, due to our success in
retaining and growing client relationships from COVID-19 related
assistance programs. These increases were partially offset by a
decrease in time deposits of $23.4 million, or 3.8%. The average cost of
deposits was 0.28% for the third quarter of 2021, representing a 4
basis point decrease from the second quarter of 2021 and a 29 basis
point decrease from the third quarter of 2020. The decrease
in average cost of deposits was due primarily to the continued
repricing of certificates of deposit and rate reductions in money
market accounts.
Borrowings decreased by $39.8
million during the third quarter of 2021 to $79.3 million, due primarily to repayment of
advances under the Paycheck Protection Program Liquidity Facility
(the "PPPLF") with the Federal Reserve. At September 30, 2021, we did not have any remaining
borrowings under the PPPLF. Borrowings totaled 2.5% of total assets
at September 30, 2021, compared to
3.9% at June 30, 2021 and 9.4% at
September 30, 2020.
Net Interest Margin and Net Interest Income
The net interest margin for the third quarter of 2021 was 3.92%,
a decrease of 14 basis points from the second quarter of 2021 and
an increase of 2 basis points from the third quarter of 2020.
The tax equivalent net interest margin(1) for the third
quarter of 2021 was 4.00%, a decrease of 14 basis points from the
second quarter of 2021 and an increase of 3 basis points from the
third quarter of 2020. Approximately $2.5 million of net deferred fees related to PPP
loans remain unamortized at September 30,
2021. The yield on loans for the third quarter of 2021 was
5.09% compared to 5.30% at June 30,
2021.
Net interest income totaled $28.1
million for the third quarter of 2021, a decrease of 5.4%
from $29.7 million for the second
quarter of 2021. Interest income totaled $30.8 million for the third quarter of 2021, a
decrease of 6.1% from $32.8 million
for the second quarter of 2021. Interest and fees on loans
decreased $2.1 million, or 6.6%,
compared to the second quarter of 2021, and decreased by
$1.0 million, or 3.2%, from the third
quarter of 2020. Interest expense was $2.7 million for the third quarter of 2021, a
decrease of 13.0% from $3.1 million
for the second quarter of 2021 and a decrease of 37.8% from
$4.3 million for the third quarter of
2020.
Noninterest Income and Noninterest Expense
Noninterest income totaled $3.3
million for the third quarter of 2021, compared to
$3.9 million for the second quarter
of 2021. This decrease was primarily driven by lower swap
fees. Swap fees fluctuate from quarter to quarter; however,
given anticipated rate hikes in 2022 and 2023, we anticipate an
increased demand for these products in coming quarters.
Noninterest expense totaled $18.0
million in the third quarter of 2021, an increase of 7.4 %
from $16.8 million in the second
quarter of 2021, which was primarily due to increases in salaries
and benefits expense.
The efficiency ratio was 57.5% in the third quarter of 2021,
compared to 50.0% in the second quarter of 2021, and 62.2% in the
third quarter of 2020. The third quarter of 2021 efficiency
ratio continues to be assisted by net deferred PPP loan origination
fees immediately recognized at the time of forgiveness by the
SBA.
|
|
|
(1)
|
Tax Equivalent Net
Interest Margin, Tangible Book Value Per Share, Tangible
Stockholders' Equity to Tangible Assets Ratio and certain
PPP-related figures are all non-GAAP measures. In Spirit's
judgment, regarding Tax Equivalent Net Interest Margin, the fully
tax equivalent basis is the preferred industry measurement basis
for net interest margin and that it enhances comparability of net
interest income arising from taxable and tax-exempt sources.
Regarding Tangible Book Value Per Share and Tangible Stockholders'
Equity To Tangible Assets, Spirit believes that that these measures
are important to many investors in the marketplace who are
interested in changes from period to period in book value per share
exclusive of changes in intangible assets. Goodwill and other
intangible assets have the effect of increasing total book value
while not increasing its tangible book value. Furthermore,
Spirit believes that the PPP-related figures are important to
investors due to the anticipated short-term nature of the PPP loans
and the expected forgiveness 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 third quarter 2021 financial results, which will be
broadcast live over the Internet, on Thursday, October 28, 2021 at 11:00 a.m., Eastern Time / 10:00 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
November 4, 2021, and may be accessed
by dialing 201-612-7415 and using pass code 13724288#. 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 CARES 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 contemplated, expressed in or implied by the particular
forward-looking statement due to additional risks and uncertainties
of which the Company is not currently aware or which it does not
currently view as, but in the future may become, material to its
business or operating results. Due to these and other
possible uncertainties and risks, we can give no assurance that the
results contemplated in the forward-looking statements will be
realized 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. All forward-looking statements, express or implied,
included in this press release are qualified in their entirety by
this cautionary statement.
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Consolidated
Statements of Income
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
28,940
|
|
$
30,995
|
|
$
29,829
|
|
$
32,682
|
|
$
29,901
|
Interest and
dividends on investment securities
|
|
1,766
|
|
1,641
|
|
1,115
|
|
914
|
|
465
|
Other interest
income
|
|
52
|
|
118
|
|
225
|
|
101
|
|
115
|
Total interest
income
|
|
30,758
|
|
32,754
|
|
31,169
|
|
33,697
|
|
30,481
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
1,798
|
|
2,081
|
|
2,327
|
|
2,726
|
|
3,392
|
Interest on FHLB
advances and other borrowings
|
|
858
|
|
972
|
|
1,003
|
|
1,099
|
|
875
|
Total interest
expense
|
|
2,656
|
|
3,053
|
|
3,330
|
|
3,825
|
|
4,267
|
Net interest
income
|
|
28,102
|
|
29,701
|
|
27,839
|
|
29,872
|
|
26,214
|
Provision for loan
losses
|
|
306
|
|
1,349
|
|
1,086
|
|
4,417
|
|
2,831
|
Net interest
income after provision for loan losses
|
|
27,796
|
|
28,352
|
|
26,753
|
|
25,455
|
|
23,383
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
1,612
|
|
1,539
|
|
1,434
|
|
1,554
|
|
1,525
|
SBA loan servicing
fees, net
|
|
165
|
|
203
|
|
324
|
|
307
|
|
619
|
Mortgage referral
fees
|
|
337
|
|
384
|
|
274
|
|
347
|
|
428
|
Swap referral
fees
|
|
400
|
|
127
|
|
430
|
|
614
|
|
494
|
Gain on sales of
loans, net
|
|
-
|
|
-
|
|
254
|
|
4,026
|
|
494
|
Gain (loss) on sales
of investment securities
|
|
-
|
|
-
|
|
5
|
|
-
|
|
1,031
|
Swap fees
|
|
687
|
|
1,411
|
|
121
|
|
1,746
|
|
-
|
Other noninterest
income
|
|
84
|
|
194
|
|
(223)
|
|
186
|
|
228
|
Total noninterest
income
|
|
3,285
|
|
3,858
|
|
2,619
|
|
8,780
|
|
4,819
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
11,022
|
|
9,603
|
|
9,220
|
|
10,656
|
|
11,365
|
Occupancy and
equipment expenses
|
|
2,360
|
|
2,354
|
|
2,662
|
|
2,749
|
|
2,222
|
Professional
services
|
|
570
|
|
457
|
|
524
|
|
521
|
|
555
|
Data processing and
network
|
|
910
|
|
931
|
|
1,229
|
|
1,379
|
|
1,002
|
Regulatory
assessments and insurance
|
|
449
|
|
483
|
|
535
|
|
549
|
|
517
|
Amortization of
intangibles
|
|
755
|
|
755
|
|
823
|
|
879
|
|
919
|
Advertising
|
|
103
|
|
47
|
|
78
|
|
74
|
|
333
|
Marketing
|
|
56
|
|
70
|
|
93
|
|
60
|
|
18
|
Telephone
expense
|
|
600
|
|
599
|
|
499
|
|
560
|
|
563
|
Conversion
expense
|
|
-
|
|
-
|
|
-
|
|
16
|
|
279
|
Other operating
expenses
|
|
1,207
|
|
1,486
|
|
971
|
|
984
|
|
1,520
|
Total noninterest
expense
|
|
18,032
|
|
16,785
|
|
16,634
|
|
18,427
|
|
19,293
|
Income before
income tax expense
|
|
13,049
|
|
15,425
|
|
12,738
|
|
15,808
|
|
8,909
|
Income tax
expense
|
|
2,593
|
|
3,015
|
|
2,652
|
|
3,353
|
|
1,821
|
Net
income
|
|
$
10,456
|
|
$
12,410
|
|
$
10,086
|
|
$
12,455
|
|
$
7,088
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
|
September
30, 2021
|
|
June
30, 2021
|
|
March
31, 2021
|
|
December
31, 2020
|
|
September
30, 2020
|
|
|
|
|
|
(Dollars in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
74,258
|
|
$
57,651
|
|
$
28,879
|
|
$
31,396
|
|
$
29,345
|
Interest-bearing
deposits in other banks
|
|
161,073
|
|
82,448
|
|
40,687
|
|
231,638
|
|
121,739
|
|
|
Total cash and cash
equivalents
|
|
235,331
|
|
140,099
|
|
69,566
|
|
263,034
|
|
151,084
|
Time deposits in
other banks
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale
securities, at fair value
|
|
421,311
|
|
434,223
|
|
442,576
|
|
212,420
|
|
119,814
|
|
Equity investments,
at fair value
|
|
23,830
|
|
23,877
|
|
23,741
|
|
24,000
|
|
-
|
|
|
Total investment
securities
|
|
445,141
|
|
458,100
|
|
466,317
|
|
236,420
|
|
119,814
|
Loans held for
sale
|
|
6,196
|
|
3,220
|
|
1,192
|
|
1,470
|
|
4,287
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment
|
|
2,252,734
|
|
2,272,089
|
|
2,430,594
|
|
2,388,532
|
|
2,452,353
|
Less: allowance for
loan and lease losses
|
|
(16,268)
|
|
(16,527)
|
|
(16,314)
|
|
(16,026)
|
|
(12,207)
|
|
Loans, net
|
|
2,236,466
|
|
2,255,562
|
|
2,414,280
|
|
2,372,506
|
|
2,440,146
|
Premises and
equipment, net
|
|
78,513
|
|
79,408
|
|
81,379
|
|
83,348
|
|
82,734
|
Accrued interest
receivable
|
|
7,819
|
|
9,071
|
|
10,588
|
|
11,199
|
|
11,612
|
Other real estate
owned and repossessed assets
|
|
-
|
|
140
|
|
-
|
|
133
|
|
302
|
Goodwill
|
|
77,681
|
|
77,681
|
|
77,681
|
|
77,681
|
|
77,681
|
Core deposit
intangible
|
|
5,485
|
|
6,240
|
|
6,995
|
|
7,818
|
|
8,698
|
SBA servicing
asset
|
|
2,311
|
|
2,567
|
|
2,821
|
|
2,953
|
|
3,051
|
Deferred tax asset,
net
|
|
1,893
|
|
1,962
|
|
2,213
|
|
1,085
|
|
494
|
Bank-owned life
insurance
|
|
36,345
|
|
31,161
|
|
16,057
|
|
15,969
|
|
15,878
|
Federal Home Loan
Bank and other bank stock, at cost
|
|
5,740
|
|
5,734
|
|
5,727
|
|
5,718
|
|
5,709
|
Right of use
assets
|
|
5,085
|
|
5,569
|
|
6,058
|
|
-
|
|
-
|
Other
assets
|
|
10,246
|
|
8,241
|
|
9,338
|
|
5,425
|
|
3,580
|
|
|
Total
assets
|
|
$
3,154,252
|
|
$
3,084,755
|
|
$
3,170,212
|
|
$
3,084,759
|
|
$
2,925,070
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
767,445
|
|
$
772,032
|
|
$
800,233
|
|
$
727,543
|
|
$
667,199
|
|
Interest-bearing
|
|
1,318,432
|
|
1,192,067
|
|
1,149,781
|
|
1,092,934
|
|
940,930
|
|
|
Total transaction
accounts
|
|
2,085,877
|
|
1,964,099
|
|
1,950,014
|
|
1,820,477
|
|
1,608,129
|
|
Time
deposits
|
|
584,699
|
|
608,073
|
|
647,536
|
|
638,658
|
|
679,387
|
|
|
Total
deposits
|
|
2,670,576
|
|
2,572,172
|
|
2,597,550
|
|
2,459,135
|
|
2,287,516
|
Accrued interest
payable
|
|
776
|
|
860
|
|
1,160
|
|
1,303
|
|
1,321
|
Short-term
borrowings
|
|
-
|
|
-
|
|
-
|
|
10,000
|
|
10,000
|
Long-term
borrowings
|
|
79,260
|
|
119,052
|
|
191,687
|
|
242,020
|
|
267,746
|
Operating lease
liability
|
|
5,228
|
|
5,730
|
|
6,231
|
|
-
|
|
-
|
Other
liabilities
|
|
10,563
|
|
9,173
|
|
7,827
|
|
11,522
|
|
6,966
|
|
|
Total
liabilities
|
|
2,766,403
|
|
2,706,987
|
|
2,804,455
|
|
2,723,980
|
|
2,573,549
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
302,392
|
|
301,202
|
|
300,591
|
|
298,850
|
|
298,509
|
Retained
earnings
|
|
104,500
|
|
96,111
|
|
85,246
|
|
76,683
|
|
65,783
|
Accumulated other
comprehensive income (loss)
|
|
(2,188)
|
|
(2,690)
|
|
(3,225)
|
|
1,005
|
|
(237)
|
Treasury
stock
|
|
(16,855)
|
|
(16,855)
|
|
(16,855)
|
|
(15,759)
|
|
(12,534)
|
|
|
Total stockholders'
equity
|
|
387,849
|
|
377,768
|
|
365,757
|
|
360,779
|
|
351,521
|
|
|
Total liabilities
and stockholders' equity
|
|
$
3,154,252
|
|
$
3,084,755
|
|
$
3,170,212
|
|
$
3,084,759
|
|
$
2,925,070
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Loan
Composition
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
|
(Dollars in
thousands)
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial loans (1)(2)
|
|
$
458,873
|
|
$
535,746
|
|
$
699,896
|
|
$
574,986
|
|
$
690,009
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
1-4 single family
residential loans
|
|
364,896
|
|
356,503
|
|
348,908
|
|
364,139
|
|
373,220
|
Construction, land
and development loans
|
|
364,513
|
|
345,420
|
|
344,557
|
|
415,488
|
|
402,476
|
Commercial real
estate loans (including multifamily)
|
|
997,512
|
|
964,313
|
|
964,342
|
|
956,743
|
|
906,134
|
Consumer loans and
leases
|
|
7,505
|
|
8,307
|
|
9,619
|
|
11,738
|
|
12,977
|
Municipal and other
loans
|
|
59,435
|
|
61,800
|
|
63,272
|
|
65,438
|
|
67,537
|
Total loans held in
portfolio
|
|
$
2,252,734
|
|
$
2,272,089
|
|
$
2,430,594
|
|
$
2,388,532
|
|
$
2,452,353
|
|
|
|
(1) Balance includes
$58.0 million, $64.9 million, $67.4 million, $70.8 million, and
$72.7 million, of the unguaranteed portion of SBA loans as of
September 30, 2021, June 30, 2021,
|
March 31, 2021,
December 31, 2020, and September 30, 2020, respectively.
|
(2) Balance includes
$106.2 million, $188.3 million, $366.5 million, $276.1 million, and
$421.1, of PPP loans as of September 30, 2021, June 30, 2021, March
31, 2021, December 31, 2020,
and September 30, 2020, respectively.
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Deposit
Composition
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
767,445
|
|
$
772,032
|
|
$
800,233
|
|
$
727,543
|
|
$
667,199
|
Interest-bearing
demand deposits
|
|
564,790
|
|
529,512
|
|
485,863
|
|
472,075
|
|
391,396
|
Interest-bearing NOW
accounts
|
|
10,668
|
|
10,763
|
|
9,904
|
|
10,288
|
|
8,655
|
Savings and money
market accounts
|
|
742,974
|
|
651,791
|
|
654,014
|
|
610,571
|
|
540,879
|
Time
deposits
|
|
584,699
|
|
608,074
|
|
647,536
|
|
638,658
|
|
679,387
|
Total
deposits
|
|
$
2,670,576
|
|
$
2,572,172
|
|
$
2,597,550
|
|
$
2,459,135
|
|
$
2,287,516
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Average Balances
and Yields
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
Average
Balance (1)
|
|
Interest/
Expense
|
|
Annualized
Yield/Rate
|
|
Average
Balance (1)
|
|
Interest/
Expense
|
|
Annualized
Yield/Rate
|
|
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
deposits in other banks
|
|
$
124,175
|
|
$
52
|
|
0.17%
|
|
$
134,573
|
|
$
101
|
|
0.30%
|
Loans, including
loans held for sale (2)
|
|
2,257,297
|
|
28,940
|
|
5.09%
|
|
2,436,667
|
|
29,901
|
|
4.87%
|
Investment securities
and other
|
|
463,467
|
|
1,766
|
|
1.51%
|
|
93,115
|
|
479
|
|
2.04%
|
Total
interest-earning assets
|
|
2,844,939
|
|
30,758
|
|
4.29%
|
|
2,664,355
|
|
30,481
|
|
4.54%
|
Noninterest-earning
assets
|
|
270,259
|
|
|
|
|
|
265,462
|
|
|
|
|
Total
assets
|
|
$
3,115,198
|
|
|
|
|
|
$
2,929,817
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
546,530
|
|
$
166
|
|
0.12%
|
|
$
375,421
|
|
$
176
|
|
0.19%
|
Interest-bearing NOW
accounts
|
|
10,869
|
|
1
|
|
0.05%
|
|
14,644
|
|
7
|
|
0.19%
|
Savings and money
market accounts
|
|
715,338
|
|
612
|
|
0.34%
|
|
541,681
|
|
621
|
|
0.45%
|
Time
deposits
|
|
596,378
|
|
1,019
|
|
0.68%
|
|
713,618
|
|
2,588
|
|
1.44%
|
FHLB advances and
other borrowings
|
|
89,012
|
|
858
|
|
3.82%
|
|
211,214
|
|
875
|
|
1.64%
|
Total
interest-bearing liabilities
|
|
1,958,127
|
|
2,656
|
|
0.54%
|
|
1,856,578
|
|
4,267
|
|
0.91%
|
Noninterest-bearing
liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
757,683
|
|
|
|
|
|
715,783
|
|
|
|
|
Other
liabilities
|
|
16,809
|
|
|
|
|
|
8,451
|
|
|
|
|
Stockholders'
equity
|
|
382,579
|
|
|
|
|
|
349,005
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
3,115,198
|
|
|
|
|
|
$
2,929,817
|
|
|
|
|
Net interest rate
spread
|
|
|
|
|
|
3.75%
|
|
|
|
|
|
3.63%
|
Net interest income
and margin
|
|
|
|
$
28,102
|
|
3.92%
|
|
|
|
$
26,214
|
|
3.90%
|
Net interest income
and margin (tax equivalent)(3)
|
|
|
|
$
28,655
|
|
4.00%
|
|
|
|
$
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 September 30, 2021 and
September 30, 2020, respectively.
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Average Balances
and Yields
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
June 30,
2021
|
|
|
Average
Balance (1)
|
|
Interest/
Expense
|
|
Annualized
Yield/Rate
|
|
Average
Balance (1)
|
|
Interest/
Expense
|
|
Annualized
Yield/Rate
|
|
|
(Dollars in
thousands)
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
deposits in other banks
|
|
124,175
|
|
$
52
|
|
0.17%
|
|
$
115,322
|
|
$
40
|
|
0.14%
|
Loans, including
loans held for sale (2)
|
|
2,257,297
|
|
28,940
|
|
5.09%
|
|
2,347,636
|
|
30,995
|
|
5.30%
|
Investment securities
and other
|
|
463,467
|
|
1,766
|
|
1.51%
|
|
469,365
|
|
1,719
|
|
1.47%
|
Total
interest-earning assets
|
|
2,844,939
|
|
30,758
|
|
4.29%
|
|
2,932,323
|
|
32,754
|
|
4.48%
|
Noninterest-earning
assets
|
|
270,259
|
|
|
|
|
|
241,133
|
|
|
|
|
Total
assets
|
|
$
3,115,198
|
|
|
|
|
|
$
3,173,456
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
546,530
|
|
$
166
|
|
0.12%
|
|
$
518,240
|
|
$
159
|
|
0.12%
|
Interest-bearing NOW
accounts
|
|
10,869
|
|
1
|
|
0.05%
|
|
10,572
|
|
1
|
|
0.05%
|
Savings and money
market accounts
|
|
715,338
|
|
612
|
|
0.34%
|
|
667,434
|
|
691
|
|
0.42%
|
Time
deposits
|
|
596,378
|
|
1,019
|
|
0.68%
|
|
622,390
|
|
1,230
|
|
0.79%
|
FHLB advances and
other borrowings
|
|
89,012
|
|
858
|
|
3.82%
|
|
184,472
|
|
972
|
|
2.11%
|
Total
interest-bearing liabilities
|
|
1,958,127
|
|
2,656
|
|
0.54%
|
|
2,003,108
|
|
3,053
|
|
0.61%
|
Noninterest-bearing
liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
757,683
|
|
|
|
|
|
782,158
|
|
|
|
|
Other
liabilities
|
|
16,809
|
|
|
|
|
|
281
|
|
|
|
|
Stockholders'
equity
|
|
382,579
|
|
|
|
|
|
387,909
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
3,115,198
|
|
|
|
|
|
$
3,173,456
|
|
|
|
|
Net interest rate
spread
|
|
|
|
|
|
3.75%
|
|
|
|
|
|
3.87%
|
Net interest income
and margin
|
|
|
|
$
28,102
|
|
3.92%
|
|
|
|
$
29,701
|
|
4.06%
|
Net interest income
and margin (tax equivalent)(3)
|
|
|
|
$
28,655
|
|
4.00%
|
|
|
|
$
30,262
|
|
4.14%
|
|
(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 September 30, 2021 and June
30, 2021, respectively.
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
|
|
Reconciliation of
Non-GAAP Financial Measures - Adjusted Net Income and Adjusted
Basic and Diluted Earnings Per Share
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the
Three Months Ended
|
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Basic and diluted
earnings per share - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
10,456
|
|
$
12,410
|
|
$
10,086
|
|
$
12,455
|
|
$
7,088
|
Weighted average
number of common shares - basic
|
|
17,200,611
|
|
17,152,217
|
|
17,103,981
|
|
17,168,091
|
|
17,340,898
|
Weighted average
number of common shares - diluted
|
|
17,651,298
|
|
17,627,958
|
|
17,518,029
|
|
17,336,484
|
|
17,383,427
|
Basic earnings per
common share
|
|
$
0.61
|
|
$
0.72
|
|
$
0.59
|
|
$
0.73
|
|
$
0.41
|
Diluted earnings per
common share
|
|
$
0.59
|
|
$
0.70
|
|
$
0.58
|
|
$
0.72
|
|
$
0.41
|
Basic and diluted
earnings per share - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
10,456
|
|
$
12,410
|
|
$
10,086
|
|
$
12,455
|
|
$
7,088
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
investment securities
|
|
-
|
|
-
|
|
(5)
|
|
-
|
|
(1,031)
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Merger related
expenses
|
|
-
|
|
-
|
|
-
|
|
24
|
|
342
|
Taxes:
|
|
|
|
|
|
|
|
|
|
|
NOL
Carryback
|
|
-
|
|
-
|
|
-
|
|
|
|
-
|
Tax effect of
adjustments
|
|
-
|
|
-
|
|
1
|
|
(5)
|
|
145
|
Adjusted net
income
|
|
$
10,456
|
|
$
12,410
|
|
$
10,082
|
|
$
12,474
|
|
$
6,544
|
Weighted average
number of common shares - basic
|
|
17,200,611
|
|
17,152,217
|
|
17,103,981
|
|
17,168,091
|
|
17,340,898
|
Weighted average
number of common shares - diluted
|
|
17,651,298
|
|
17,627,958
|
|
17,518,029
|
|
17,336,484
|
|
17,383,427
|
Basic earnings per
common share - Non-GAAP basis
|
|
$
0.61
|
|
$
0.72
|
|
$
0.59
|
|
$
0.73
|
|
$
0.38
|
Diluted earnings per
common share - Non-GAAP basis
|
|
$
0.59
|
|
$
0.70
|
|
$
0.58
|
|
$
0.72
|
|
$
0.38
|
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
|
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Net interest
margin - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
28,102
|
|
$
29,701
|
|
$
27,839
|
|
$
29,872
|
|
$
26,214
|
Average
interest-earning assets
|
|
2,844,939
|
|
2,932,323
|
|
2,867,099
|
|
2,716,596
|
|
2,664,355
|
Net interest
margin
|
|
3.92%
|
|
4.06%
|
|
3.94%
|
|
4.36%
|
|
3.90%
|
Net interest
margin - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
28,102
|
|
$
29,701
|
|
$
27,839
|
|
$
29,872
|
|
$
26,214
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
Impact of fully
taxable equivalent adjustment
|
|
553
|
|
561
|
|
329
|
|
512
|
|
446
|
Net interest income
on a fully taxable equivalent basis
|
|
$
28,655
|
|
$
30,262
|
|
$
28,168
|
|
$
30,384
|
|
$
26,660
|
Average
interest-earning assets
|
|
2,844,939
|
|
2,932,323
|
|
2,867,099
|
|
2,716,596
|
|
2,664,355
|
Net interest margin
on a fully taxable equivalent basis - Non-GAAP basis
|
|
4.00%
|
|
4.14%
|
|
3.98%
|
|
4.44%
|
|
3.97%
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Reconciliation of
Non-GAAP Financial Measures - Tangible Book Value Per
Share
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Total stockholders'
equity
|
|
$
387,849
|
|
$
377,768
|
|
$
365,757
|
|
$
360,779
|
|
$
351,521
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
83,166
|
|
83,921
|
|
84,676
|
|
85,499
|
|
86,379
|
Tangible
stockholders' equity
|
|
$
304,683
|
|
$
293,847
|
|
$
281,081
|
|
$
275,280
|
|
$
265,142
|
Shares
outstanding
|
|
17,242,487
|
|
17,164,103
|
|
17,136,553
|
|
17,081,831
|
|
17,316,313
|
Book value per
share
|
|
$
22.49
|
|
$
22.01
|
|
$
21.34
|
|
$
21.12
|
|
$
20.30
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets per share
|
|
$
4.82
|
|
$
4.89
|
|
$
4.94
|
|
5.01
|
|
4.99
|
Tangible book value
per share
|
|
$
17.67
|
|
$
17.12
|
|
$
16.40
|
|
$
16.11
|
|
$
15.31
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Reconciliation of
Non-GAAP Financial Measures - Tangible Equity to Tangible
Assets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
September 30,
2020
|
|
|
(Dollars in
thousands)
|
Total
stockholders' equity to total assets - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity (numerator)
|
|
$
387,849
|
|
$
377,768
|
|
$
365,757
|
|
$
360,779
|
|
$
351,521
|
Total assets
(denominator)
|
|
3,154,252
|
|
3,084,755
|
|
3,170,212
|
|
3,084,759
|
|
2,925,070
|
Total stockholders'
equity to total assets
|
|
12.30%
|
|
12.25%
|
|
11.54%
|
|
11.70%
|
|
12.02%
|
Tangible equity to
tangible assets - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
387,849
|
|
$
377,768
|
|
$
365,757
|
|
$
360,779
|
|
$
351,521
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
83,166
|
|
83,921
|
|
84,676
|
|
85,499
|
|
86,379
|
Total tangible common
equity (numerator)
|
|
$
304,683
|
|
$
293,847
|
|
$
281,081
|
|
$
275,280
|
|
$
265,142
|
Tangible
assets:
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
3,154,252
|
|
3,084,755
|
|
3,170,212
|
|
3,084,759
|
|
2,925,070
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
83,166
|
|
83,921
|
|
84,676
|
|
85,499
|
|
86,379
|
Total tangible assets
(denominator)
|
|
$
3,071,086
|
|
$
3,000,834
|
|
$
3,085,536
|
|
$
2,999,260
|
|
$
2,838,691
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
|
9.92%
|
|
9.79%
|
|
9.11%
|
|
9.18%
|
|
9.34%
|
Dennard Lascar Investor
Relations
Ken Dennard / Natalie Hairston
(713) 529-6600
STXB@dennardlascar.com
View original
content:https://www.prnewswire.com/news-releases/spirit-of-texas-bancshares-inc-reports-third-quarter-2021-financial-results-301410315.html
SOURCE Spirit of Texas Bancshares, Inc.