CONROE, Texas, Jan. 26, 2022 /PRNewswire/ -- Spirit of
Texas Bancshares, Inc. (NASDAQ: STXB) ("Spirit," the "Company,"
"we," "our," or "us"), reported net income of $9.1 million in the fourth quarter of 2021,
representing diluted earnings per share of $0.51, compared to net income of $12.5 million in the fourth quarter of 2020,
representing diluted earnings per share of $0.72. During the fourth quarter of
2020, net income was impacted by $3.7
million in gain on sale of Main Street Lending loans and
$4.5 million in net accretion of
deferred origination fees on Paycheck Protection Program ("PPP")
loans forgiven by the U.S. Small Business Administration ("SBA"),
compared to the fourth quarter of 2021 which only had $1.5 million in net accretion of deferred
origination fees on PPP loans. Additionally, the fourth
quarter of 2021 contained $800
thousand of expenses related to the proposed merger with
Simmons First Financial Corporation ("Simmons") and $412 thousand of expenses related to normal bonus
payments that will be accelerated to the proposed acquisition close
date.
Fourth Quarter 2021 Financial and Operational
Highlights
- On November 19, 2021, Spirit
announced its intention to merge with Simmons with expectations to
close the transaction during the second quarter of 2022, subject to
the receipt of Spirit shareholder approval, regulatory approvals
and waivers and other customary closing conditions.
- Excluding the impact of PPP loan forgiveness by the SBA during
the period, loans held for investment increased 24.3% annualized
for the three months ended December 31,
2021.
- Net interest margin for the fourth quarter of 2021 as reported
and on a tax equivalent basis(1) was 3.87% and 3.89%,
respectively.
- At December 31, 2021, return on
average assets was 1.13% on an annualized basis.
- Book value per share increased to $22.79 and tangible book value per
share(1) increased to $18.02 at December 31,
2021, compared to $22.49 and
$17.67, respectively, at September 30, 2021.
- Total stockholders' equity to total assets was 12.06% and
tangible stockholders' equity to tangible assets(1) was
9.78% at December 31, 2021.
- Capital ratios remained strong with Common Equity Tier 1 ratio
at the Company and the Bank of 10.64% and 10.65%, respectively, at
December 31, 2021.
"As we continue to work toward the upcoming completion of the
proposed merger with Simmons, I am pleased to report another
exceptional quarter of financial and operational success."
Dean Bass, Spirit's Chairman and
Chief Executive Officer, stated. "While we have enjoyed seeing the
return of loan demand over the past few quarters in the form of a
larger loan pipeline, the fourth quarter of 2021 saw an impressive
move in volume from the pipeline to closed and funded loans. We are
also excited to see SBA loan sales during the quarter which
translated into $811 thousand in gain
on sale of loans during the fourth quarter of 2021. Both robust
loan demand and the return of higher non-interest revenue streams
represent great opening acts to the start of our anticipated next
chapter merging with Simmons.
"I am exceptionally proud of what our team has been able to
accomplish over the past twelve years and I'm excited to see what
heights we can reach partnering with a best-in-class regional
bank," Mr. Bass concluded.
Loan Portfolio and Composition
During the fourth quarter of 2021, gross loans increased to
$2.32 billion as of December 31, 2021, an increase of 3.08% from
$2.25 billion as of September 30, 2021, and a decrease of 2.78% from
$2.39 billion as of December 31, 2020. PPP loan forgiveness,
which has been the primary cause of the overall decrease in loans
year over year, will not significantly impact loan growth going
forward as only 237 PPP loans remain outstanding with a total
recorded investment of $43.9 million
as of December 31, 2021. Excluding
the effect of PPP loan forgiveness, the loan portfolio as of
December 31, 2021 increased by
$131.6 million, or 24.3% annualized
from September 30, 2021. Despite a
large volume of loans moving from the pipeline to closed loans, the
remaining pipeline is well over $1.0
billion and represents an exciting opportunity to fund
additional projects in the coming quarters.
Asset Quality
Asset quality is strong with loans continuing to migrate into
lower risk ratings during the fourth quarter of 2021 and with
non-performing loans declining $855
thousand or 13.9% from the third quarter of 2021. We
perceive the sentiment in the Texas economy to be optimistic despite
continued labor and supply shortages and higher inflation that may
persist longer than previously expected. The provision for loan
losses recorded for the fourth quarter of 2021 was $970 thousand, which served to increase the
allowance to $16.4 million, or 0.71%
of the $2.32 billion in gross loans
outstanding as of December 31, 2021.
Provision expense for the fourth quarter of 2021 related primarily
to the provisioning of new loans.
As of December 31, 2021, the
nonperforming loans to loans held for investment ratio remains low
at 0.22%, a decrease from 0.28% at September
30, 2021, and a decrease from 0.36% as of December 31, 2020. Annualized net
charge-offs were 15 basis points for the fourth quarter of 2021
compared to 10 basis points for the third quarter of 2021.
Deposits and Borrowings
Deposits totaled $2.78 billion as
of December 31, 2021, an increase of
4.2% from $2.67 billion as of
September 30, 2021, and an increase
of 13.2% from $2.46 billion as of
December 31, 2020.
Noninterest-bearing demand deposits increased $36.1 million, or 4.70%, from September 30, 2021, and increased $76.0 million, or 10.5%, from December
31, 2020. Noninterest-bearing demand deposits represented
28.9% of total deposits as of December 31, 2021, up from 28.7%
of total deposits as of September 30,
2021, and down from 29.6% of total deposits as of
December 31, 2020.
Interest-bearing deposits, including money market and savings as of
December 31, 2021 increased
$96.6 million, or 29.1% annualized
from September 30, 2021, primarily
due to success in retaining and growing client relationships from
COVID-19 related assistance programs. Growth in interest-bearing
deposits was slightly offset by a decrease in time deposits of
$20.9 million, or 3.6%, from
September 30, 2021. The average cost
of deposits was 0.22% for the fourth quarter of 2021, representing
a 3 basis point decrease from the third quarter of 2021 and a 21
basis point decrease from the fourth quarter of 2020.
Borrowings decreased by $4.3
million during the fourth quarter of 2021 to $74.9 million, due primarily to the repayment of
maturing Federal Home Loan Bank ("FHLB") advances. At December 31, 2021, we did not have any remaining
borrowings under the Paycheck Protection Program Liquidity Facility
with the Board of Governors of the Federal Reserve System
("PPPLF"). Borrowings totaled 2.3% of total assets at December 31, 2021, compared to 2.5% at
September 30, 2021 and 8.2% at
December 31, 2020.
Net Interest Margin and Net Interest Income
The net interest margin for the fourth quarter of 2021 was
3.87%, a decrease of 5 basis points from the third quarter of 2021
and a decrease of 49 basis points from the fourth quarter of
2020. The tax equivalent net interest margin(1)
for the fourth quarter of 2021 was 3.89%, a decrease of 11 basis
points from the third quarter of 2021 and a decrease of 55 basis
points from the fourth quarter of 2020. The decline in net
interest margin is primarily due to the increase in average cash
balances. Approximately $979
thousand of net deferred SBA fees related to PPP loans
remain unamortized at December 31,
2021. The yield on loans for the fourth quarter of 2021 was
5.08% compared to 5.09% at September 30,
2021 and 5.42% at December 21,
2020.
Net interest income totaled $28.5
million for the fourth quarter of 2021, an increase of 1.3%
from $28.1 million for the third
quarter of 2021 and a decrease of 4.7% from $29.9 million for the fourth quarter of
2020. Interest income totaled $30.8
million for the fourth and third quarters of 2021, compared
to $33.7 million for the fourth
quarter of 2020. Interest and fees on loans increased
$218 thousand, or 0.75%, compared to
the third quarter of 2021, and decreased by $3.5 million, or 10.8%, from the fourth quarter
of 2020. Interest expense was $2.4
million for the fourth quarter of 2021, a decrease of 10.8%
from $2.7 million for the third
quarter of 2021 and a decrease of 38.1% from $3.8 million for the fourth quarter of
2020.
Noninterest Income and Noninterest Expense
Noninterest income totaled $4.3
million for the fourth quarter of 2021, compared to
$3.3 million for the third quarter of
2021 and $8.8 million for the fourth
quarter of 2020. This increase from the third quarter of 2021
was primarily driven by higher SBA loan servicing fees and a gain
on sale of loans.
Noninterest expense totaled $20.3
million in the fourth quarter of 2021, an increase of 12.6 %
from $18.0 million in the third
quarter of 2021, which was primarily due to increases in salaries
and benefits expense and professional services. The increase
in salaries and benefits expense for the quarter was due to
$412 thousand of normal bonus
payments that will be accelerated to the close date of the proposed
merger with Simmons.
The efficiency ratio was 61.9% in the fourth quarter of 2021,
compared to 57.5% in the third quarter of 2021, and 47.7% in the
fourth quarter of 2020. The fourth quarter of 2021 efficiency
ratio was negatively impacted during the quarter by the
aforementioned additional salaries and benefits expense.
_______________________________________________________
|
(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 fourth quarter 2021 financial results, which will be
broadcast live over the Internet, on Thursday, January 27, 2022 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
February 3, 2022, and may be accessed
by dialing 201-612-7415 and using pass code 13725940#. 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 35
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
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)
disruption from the proposed merger with Simmons; (ii) the risk
that the proposed merger with Simmons may not be completed in a
timely manner or at all; (iii) the occurrence of any event, change,
or other circumstances that could give rise to the termination of
the proposed merger with Simmons, including under circumstances
that would require Spirit to pay a termination fee; (iv) the
failure to obtain necessary shareholder or regulatory approvals for
the proposed merger with Simmons; (v) the ability to successfully
integrate the combined business; (vi) the possibility that the
amount of the costs, fees, expenses, and charges related to the
proposed merger with Simmons may be greater than anticipated,
including as a result of unexpected or unknown factors, events, or
liabilities; (vii) the failure of the conditions to the proposed
merger with Simmons to be satisfied; (viii) reputational risk and
the reaction of the parties' customers to the proposed merger with
Simmons; (xi) the risk of potential litigation or regulatory action
related to the proposed merger with Simmons; (x) changes in general
business, industry or economic conditions, or competition; (xi) the
impact of the ongoing COVID-19 pandemic (or any current or future
variant thereof) 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, (xii) 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; (xiii) adverse changes or
conditions in capital and financial markets; (xiv) changes in
interest rates; (xv) higher-than-expected costs or other
difficulties related to integration of combined or merged
businesses; (xvi) the inability to realize expected cost savings or
achieve other anticipated benefits in connection with business
combinations and other acquisitions; (xvii) changes in the quality
or composition of our loan and investment portfolios; (xviii)
adequacy of loan loss reserves; (xix) increased competition; (xx)
loss of certain key officers; (xxi) continued relationships with
major customers; (xxii) deposit attrition; (xxiii) rapidly changing
technology; (xxiv) unanticipated regulatory or judicial proceedings
and liabilities and other costs; (xxv) changes in the cost of
funds, demand for loan products, or demand for financial services;
(xxvi) other economic, competitive, governmental, or technological
factors affecting our operations, markets, products, services, and
prices; and (xxvii) 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
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
29,158
|
|
$
28,940
|
|
$
30,995
|
|
$
29,829
|
|
$
32,682
|
Interest and
dividends on investment securities
|
|
1,600
|
|
1,766
|
|
1,641
|
|
1,115
|
|
914
|
Other interest
income
|
|
85
|
|
52
|
|
118
|
|
225
|
|
101
|
Total interest
income
|
|
30,843
|
|
30,758
|
|
32,754
|
|
31,169
|
|
33,697
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
1,520
|
|
1,798
|
|
2,081
|
|
2,327
|
|
2,726
|
Interest on FHLB
advances and other borrowings
|
|
849
|
|
858
|
|
972
|
|
1,003
|
|
1,099
|
Total interest
expense
|
|
2,369
|
|
2,656
|
|
3,053
|
|
3,330
|
|
3,825
|
Net interest
income
|
|
28,474
|
|
28,102
|
|
29,701
|
|
27,839
|
|
29,872
|
Provision for loan
losses
|
|
970
|
|
306
|
|
1,349
|
|
1,086
|
|
4,417
|
Net interest
income after provision for loan losses
|
|
27,504
|
|
27,796
|
|
28,352
|
|
26,753
|
|
25,455
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
1,679
|
|
1,612
|
|
1,539
|
|
1,434
|
|
1,554
|
SBA loan servicing
fees, net
|
|
543
|
|
165
|
|
203
|
|
324
|
|
307
|
Mortgage referral
fees
|
|
358
|
|
337
|
|
384
|
|
274
|
|
347
|
Swap referral
fees
|
|
344
|
|
400
|
|
127
|
|
430
|
|
614
|
Gain on sales of
loans, net
|
|
812
|
|
-
|
|
-
|
|
254
|
|
4,026
|
Gain (loss) on sales
of investment securities
|
|
-
|
|
-
|
|
-
|
|
5
|
|
-
|
Swap fees
|
|
482
|
|
687
|
|
1,411
|
|
121
|
|
1,746
|
Other noninterest
income
|
|
91
|
|
84
|
|
194
|
|
(223)
|
|
186
|
Total noninterest
income
|
|
4,309
|
|
3,285
|
|
3,858
|
|
2,619
|
|
8,780
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
11,843
|
|
11,022
|
|
9,603
|
|
9,220
|
|
10,656
|
Occupancy and
equipment expenses
|
|
2,493
|
|
2,360
|
|
2,354
|
|
2,662
|
|
2,749
|
Professional
services
|
|
1,442
|
|
570
|
|
457
|
|
524
|
|
521
|
Data processing and
network
|
|
1,007
|
|
910
|
|
931
|
|
1,229
|
|
1,379
|
Regulatory
assessments and insurance
|
|
434
|
|
449
|
|
483
|
|
535
|
|
549
|
Amortization of
intangibles
|
|
734
|
|
755
|
|
755
|
|
823
|
|
879
|
Advertising
|
|
139
|
|
103
|
|
47
|
|
78
|
|
74
|
Marketing
|
|
90
|
|
56
|
|
70
|
|
93
|
|
60
|
Telephone
expense
|
|
552
|
|
600
|
|
599
|
|
499
|
|
560
|
Conversion
expense
|
|
-
|
|
-
|
|
-
|
|
-
|
|
16
|
Other operating
expenses
|
|
1,566
|
|
1,207
|
|
1,486
|
|
971
|
|
984
|
Total noninterest
expense
|
|
20,300
|
|
18,032
|
|
16,785
|
|
16,634
|
|
18,427
|
Income before
income tax expense
|
|
11,513
|
|
13,049
|
|
15,425
|
|
12,738
|
|
15,808
|
Income tax
expense
|
|
2,413
|
|
2,593
|
|
3,015
|
|
2,652
|
|
3,353
|
Net
income
|
|
$
9,100
|
|
$
10,456
|
|
$
12,410
|
|
$
10,086
|
|
$
12,455
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
(Dollars in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
87,176
|
|
$
74,258
|
|
$
57,651
|
|
$
28,879
|
|
$
31,396
|
Interest-bearing
deposits in other banks
|
|
218,612
|
|
161,073
|
|
82,448
|
|
40,687
|
|
231,638
|
|
|
Total cash and cash
equivalents
|
|
305,788
|
|
235,331
|
|
140,099
|
|
69,566
|
|
263,034
|
Time deposits in
other banks
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale
securities, at fair value
|
|
400,748
|
|
421,311
|
|
434,223
|
|
442,576
|
|
212,420
|
|
Equity investments,
at fair value
|
|
23,665
|
|
23,830
|
|
23,877
|
|
23,741
|
|
24,000
|
|
|
Total investment
securities
|
|
424,413
|
|
445,141
|
|
458,100
|
|
466,317
|
|
236,420
|
Loans held for
sale
|
|
3,472
|
|
6,196
|
|
3,220
|
|
1,192
|
|
1,470
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment
|
|
2,322,101
|
|
2,252,734
|
|
2,272,089
|
|
2,430,594
|
|
2,388,532
|
Less: allowance for
loan and lease losses
|
|
(16,395)
|
|
(16,268)
|
|
(16,527)
|
|
(16,314)
|
|
(16,026)
|
|
Loans, net
|
|
|
2,305,706
|
|
2,236,466
|
|
2,255,562
|
|
2,414,280
|
|
2,372,506
|
Premises and
equipment, net
|
|
77,291
|
|
78,513
|
|
79,408
|
|
81,379
|
|
83,348
|
Accrued interest
receivable
|
|
8,146
|
|
7,819
|
|
9,071
|
|
10,588
|
|
11,199
|
Other real estate
owned and repossessed assets
|
|
188
|
|
-
|
|
140
|
|
-
|
|
133
|
Goodwill
|
|
|
77,681
|
|
77,681
|
|
77,681
|
|
77,681
|
|
77,681
|
Core deposit
intangible
|
|
4,751
|
|
5,485
|
|
6,240
|
|
6,995
|
|
7,818
|
SBA servicing
asset
|
|
2,244
|
|
2,311
|
|
2,567
|
|
2,821
|
|
2,953
|
Deferred tax asset,
net
|
|
1,172
|
|
1,893
|
|
1,962
|
|
2,213
|
|
1,085
|
Bank-owned life
insurance
|
|
36,644
|
|
36,345
|
|
31,161
|
|
16,057
|
|
15,969
|
Federal Home Loan
Bank and other bank stock, at cost
|
|
3,741
|
|
5,740
|
|
5,734
|
|
5,727
|
|
5,718
|
Right of use
assets
|
|
|
4,539
|
|
5,085
|
|
5,569
|
|
6,058
|
|
-
|
Other
assets
|
|
|
10,262
|
|
10,246
|
|
8,241
|
|
9,338
|
|
5,425
|
|
|
Total
assets
|
|
$
3,266,038
|
|
$
3,154,252
|
|
$
3,084,755
|
|
$
3,170,212
|
|
$
3,084,759
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
803,546
|
|
$
767,445
|
|
$
772,032
|
|
$
800,233
|
|
$
727,543
|
|
Interest-bearing
|
|
1,415,000
|
|
1,318,432
|
|
1,192,067
|
|
1,149,781
|
|
1,092,934
|
|
|
Total transaction
accounts
|
|
2,218,546
|
|
2,085,877
|
|
1,964,099
|
|
1,950,014
|
|
1,820,477
|
|
Time
deposits
|
|
563,845
|
|
584,699
|
|
608,073
|
|
647,536
|
|
638,658
|
|
|
Total
deposits
|
|
2,782,391
|
|
2,670,576
|
|
2,572,172
|
|
2,597,550
|
|
2,459,135
|
Accrued interest
payable
|
|
781
|
|
776
|
|
860
|
|
1,160
|
|
1,303
|
Short-term
borrowings
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10,000
|
Long-term
borrowings
|
|
74,937
|
|
79,260
|
|
119,052
|
|
191,687
|
|
242,020
|
Operating lease
liability
|
|
4,720
|
|
5,228
|
|
5,730
|
|
6,231
|
|
-
|
Other
liabilities
|
|
|
9,393
|
|
10,563
|
|
9,173
|
|
7,827
|
|
11,522
|
|
|
Total
liabilities
|
|
2,872,222
|
|
2,766,403
|
|
2,706,987
|
|
2,804,455
|
|
2,723,980
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
303,227
|
|
302,392
|
|
301,202
|
|
300,591
|
|
298,850
|
Retained
earnings
|
|
|
111,525
|
|
104,500
|
|
96,111
|
|
85,246
|
|
76,683
|
Accumulated other
comprehensive income (loss)
|
|
(4,081)
|
|
(2,188)
|
|
(2,690)
|
|
(3,225)
|
|
1,005
|
Treasury
stock
|
|
(16,855)
|
|
(16,855)
|
|
(16,855)
|
|
(16,855)
|
|
(15,759)
|
|
|
Total stockholders'
equity
|
|
393,816
|
|
387,849
|
|
377,768
|
|
365,757
|
|
360,779
|
|
|
Total liabilities
and stockholders' equity
|
|
$
3,266,038
|
|
$
3,154,252
|
|
$
3,084,755
|
|
$
3,170,212
|
|
$
3,084,759
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Loan
Composition
|
(Unaudited)
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
(Dollars in
thousands)
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial loans (1)(2)
|
|
$
464,697
|
|
$
458,873
|
|
$
535,608
|
|
$
699,896
|
|
$
574,986
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
1-4 single family
residential loans
|
|
362,155
|
|
364,896
|
|
356,503
|
|
348,908
|
|
364,139
|
Construction, land
and development loans
|
|
400,952
|
|
364,513
|
|
345,420
|
|
344,557
|
|
415,488
|
Commercial real
estate loans (including multifamily)
|
|
1,030,891
|
|
997,512
|
|
964,565
|
|
964,342
|
|
956,743
|
Consumer loans and
leases
|
|
6,307
|
|
7,505
|
|
8,444
|
|
9,619
|
|
11,738
|
Municipal and other
loans
|
|
57,099
|
|
59,435
|
|
61,549
|
|
63,272
|
|
65,438
|
Total loans held in
portfolio
|
|
$
2,322,101
|
|
$
2,252,734
|
|
$
2,272,089
|
|
$
2,430,594
|
|
$
2,388,532
|
|
(1) Balance includes
$53.5 million, $58.0 million, $64.9 million, $67.4 million, and
$70.8 million, of the unguaranteed portion of SBA loans as of
December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020,
respectively.
|
(2) Balance includes
$43.9 million, $106.2 million, $188.3 million, $366.5 million, and
$276.1 million, of PPP loans as of December 31, 2021, September 30,
2021, June 30, 2021, March
31, 2021, and December 31, 2020, respectively.
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Deposit
Composition
|
(Unaudited)
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
|
(Dollars in
thousands)
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
803,546
|
|
$
767,445
|
|
$
772,032
|
|
$
800,233
|
|
$
727,543
|
Interest-bearing
demand deposits
|
|
650,588
|
|
564,790
|
|
529,512
|
|
485,863
|
|
472,075
|
Interest-bearing NOW
accounts
|
|
13,008
|
|
10,668
|
|
10,763
|
|
9,904
|
|
10,288
|
Savings and money
market accounts
|
|
751,404
|
|
742,974
|
|
651,791
|
|
654,014
|
|
610,571
|
Time
deposits
|
|
563,845
|
|
584,699
|
|
608,074
|
|
647,536
|
|
638,658
|
Total
deposits
|
|
$
2,782,391
|
|
$
2,670,576
|
|
$
2,572,172
|
|
$
2,597,550
|
|
$
2,459,135
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Average Balances
and Yields
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 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
|
|
$
200,483
|
|
$
85
|
|
0.17%
|
|
$
144,349
|
|
$
101
|
|
0.28%
|
Loans, including
loans held for sale (2)
|
|
2,275,497
|
|
29,158
|
|
5.08%
|
|
2,394,431
|
|
32,682
|
|
5.42%
|
Investment securities
and other
|
|
442,093
|
|
1,600
|
|
1.44%
|
|
177,816
|
|
914
|
|
2.04%
|
Total
interest-earning assets
|
|
2,918,073
|
|
30,843
|
|
4.19%
|
|
2,716,596
|
|
33,697
|
|
4.92%
|
Noninterest-earning
assets
|
|
289,984
|
|
|
|
|
|
274,170
|
|
|
|
|
Total
assets
|
|
$
3,208,057
|
|
|
|
|
|
$
2,990,766
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
605,317
|
|
$
183
|
|
0.12%
|
|
$
413,956
|
|
$
156
|
|
0.15%
|
Interest-bearing NOW
accounts
|
|
11,015
|
|
1
|
|
0.04%
|
|
9,510
|
|
2
|
|
0.08%
|
Savings and money
market accounts
|
|
727,849
|
|
503
|
|
0.27%
|
|
580,216
|
|
648
|
|
0.44%
|
Time
deposits
|
|
572,818
|
|
833
|
|
0.58%
|
|
657,726
|
|
1,920
|
|
1.16%
|
FHLB advances and
other borrowings
|
|
77,484
|
|
849
|
|
4.35%
|
|
263,486
|
|
1,099
|
|
1.65%
|
Total
interest-bearing liabilities
|
|
1,994,483
|
|
2,369
|
|
0.47%
|
|
1,924,894
|
|
3,825
|
|
0.79%
|
Noninterest-bearing
liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
809,179
|
|
|
|
|
|
702,250
|
|
|
|
|
Other
liabilities
|
|
13,898
|
|
|
|
|
|
7,722
|
|
|
|
|
Stockholders'
equity
|
|
390,497
|
|
|
|
|
|
355,900
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
3,208,057
|
|
|
|
|
|
$
2,990,766
|
|
|
|
|
Net interest rate
spread
|
|
|
|
|
|
3.72%
|
|
|
|
|
|
4.13%
|
Net interest income
and margin
|
|
|
|
$
28,474
|
|
3.87%
|
|
|
|
$
29,872
|
|
4.36%
|
Net interest income
and margin (tax equivalent)(3)
|
|
|
|
$
28,588
|
|
3.89%
|
|
|
|
$
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 December 31, 2021 and December 31, 2020,
respectively.
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Average Balances
and Yields
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
September 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
|
|
200,483
|
|
$
85
|
|
0.17%
|
|
$
124,175
|
|
$
52
|
|
0.17%
|
Loans, including
loans held for sale (2)
|
|
2,275,497
|
|
29,158
|
|
5.08%
|
|
2,257,297
|
|
28,940
|
|
5.09%
|
Investment securities
and other
|
|
442,093
|
|
1,600
|
|
1.44%
|
|
463,467
|
|
1,766
|
|
1.51%
|
Total
interest-earning assets
|
|
2,918,073
|
|
30,843
|
|
4.19%
|
|
2,844,939
|
|
30,758
|
|
4.29%
|
Noninterest-earning
assets
|
|
289,984
|
|
|
|
|
|
270,259
|
|
|
|
|
Total
assets
|
|
$
3,208,057
|
|
|
|
|
|
$
3,115,198
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
605,317
|
|
$
183
|
|
0.12%
|
|
$
546,530
|
|
$
166
|
|
0.12%
|
Interest-bearing NOW
accounts
|
|
11,015
|
|
1
|
|
0.04%
|
|
10,869
|
|
1
|
|
0.05%
|
Savings and money
market accounts
|
|
727,849
|
|
503
|
|
0.27%
|
|
715,338
|
|
612
|
|
0.34%
|
Time
deposits
|
|
572,818
|
|
833
|
|
0.58%
|
|
596,378
|
|
1,019
|
|
0.68%
|
FHLB advances and
other borrowings
|
|
77,484
|
|
849
|
|
4.35%
|
|
89,012
|
|
858
|
|
3.82%
|
Total
interest-bearing liabilities
|
|
1,994,483
|
|
2,369
|
|
0.47%
|
|
1,958,127
|
|
2,656
|
|
0.54%
|
Noninterest-bearing
liabilities and
shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
809,179
|
|
|
|
|
|
757,683
|
|
|
|
|
Other
liabilities
|
|
13,898
|
|
|
|
|
|
16,809
|
|
|
|
|
Stockholders'
equity
|
|
390,497
|
|
|
|
|
|
382,579
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
3,208,057
|
|
|
|
|
|
$
3,115,198
|
|
|
|
|
Net interest rate
spread
|
|
|
|
|
|
3.72%
|
|
|
|
|
|
3.75%
|
Net interest income
and margin
|
|
|
|
$
28,474
|
|
3.87%
|
|
|
|
$
28,102
|
|
3.92%
|
Net interest income
and margin (tax equivalent)(3)
|
|
|
|
$
28,588
|
|
3.89%
|
|
|
|
$
28,655
|
|
4.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average balances
presented are derived from daily average balances.
|
|
|
|
|
(2) Includes loans on
nonaccrual status.
|
|
|
|
|
|
|
(3) In order to make
pretax income and resultant yields on tax-exempt loans comparable
to those on taxable loans, a tax-equivalent adjustment has been
computed using a
|
federal tax rate of 21% for
the three months ended 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
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Basic and diluted
earnings per share - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
9,100
|
|
$
10,456
|
|
$
12,410
|
|
$
10,086
|
|
$
12,455
|
Weighted average
number of common shares - basic
|
|
17,262,221
|
|
17,200,611
|
|
17,152,217
|
|
17,103,981
|
|
17,168,091
|
Weighted average
number of common shares - diluted
|
|
17,781,812
|
|
17,651,298
|
|
17,627,958
|
|
17,518,029
|
|
17,336,484
|
Basic earnings per
common share
|
|
$
0.53
|
|
$
0.61
|
|
$
0.72
|
|
$
0.59
|
|
$
0.73
|
Diluted earnings per
common share
|
|
$
0.51
|
|
$
0.59
|
|
$
0.70
|
|
$
0.58
|
|
$
0.72
|
Basic and diluted
earnings per share - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
9,100
|
|
$
10,456
|
|
$
12,410
|
|
$
10,086
|
|
$
12,455
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
investment securities
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
-
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Merger related
expenses
|
|
800
|
|
-
|
|
-
|
|
-
|
|
24
|
Taxes:
|
|
|
|
|
|
|
|
|
|
|
NOL
Carryback
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Tax effect of
adjustments
|
|
(118)
|
|
-
|
|
-
|
|
1
|
|
(5)
|
Adjusted net
income
|
|
$
9,782
|
|
$
10,456
|
|
$
12,410
|
|
$
10,082
|
|
$
12,474
|
Weighted average
number of common shares - basic
|
|
17,262,221
|
|
17,200,611
|
|
17,152,217
|
|
17,103,981
|
|
17,168,091
|
Weighted average
number of common shares - diluted
|
|
17,781,812
|
|
17,651,298
|
|
17,627,958
|
|
17,518,029
|
|
17,336,484
|
Basic earnings per
common share - Non-GAAP basis
|
|
$
0.57
|
|
$
0.61
|
|
$
0.72
|
|
$
0.59
|
|
$
0.73
|
Diluted earnings per
common share - Non-GAAP basis
|
|
$
0.55
|
|
$
0.59
|
|
$
0.70
|
|
$
0.58
|
|
$
0.72
|
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,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Net interest
margin - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
28,474
|
|
$
28,102
|
|
$
29,701
|
|
$
27,839
|
|
$
29,872
|
Average
interest-earning assets
|
|
2,918,073
|
|
2,844,939
|
|
2,932,323
|
|
2,867,099
|
|
2,716,596
|
Net interest
margin
|
|
3.87%
|
|
3.92%
|
|
4.06%
|
|
3.94%
|
|
4.36%
|
Net interest
margin - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
28,474
|
|
$
28,102
|
|
$
29,701
|
|
$
27,839
|
|
$
29,872
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
Impact of fully
taxable equivalent adjustment
|
|
114
|
|
553
|
|
561
|
|
329
|
|
512
|
Net interest income
on a fully taxable equivalent basis
|
|
$
28,588
|
|
$
28,655
|
|
$
30,262
|
|
$
28,168
|
|
$
30,384
|
Average
interest-earning assets
|
|
2,918,073
|
|
2,844,939
|
|
2,932,323
|
|
2,867,099
|
|
2,716,596
|
Net interest margin
on a fully taxable equivalent basis - Non-GAAP basis
|
|
3.89%
|
|
4.00%
|
|
4.14%
|
|
3.98%
|
|
4.44%
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Reconciliation of
Non-GAAP Financial Measures - Tangible Book Value Per
Share
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
(Dollars in
thousands, except per share data)
|
Total stockholders'
equity
|
|
$
393,816
|
|
$
387,849
|
|
$
377,768
|
|
$
365,757
|
|
$
360,779
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
82,432
|
|
83,166
|
|
83,921
|
|
84,676
|
|
85,499
|
Tangible
stockholders' equity
|
|
$
311,384
|
|
$
304,683
|
|
$
293,847
|
|
$
281,081
|
|
$
275,280
|
Shares
outstanding
|
|
17,282,047
|
|
17,242,487
|
|
17,164,103
|
|
17,136,553
|
|
17,081,831
|
Book value per
share
|
|
$
22.79
|
|
$
22.49
|
|
$
22.01
|
|
$
21.34
|
|
$
21.12
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets per share
|
|
$
4.77
|
|
$
4.82
|
|
$
4.89
|
|
$
4.94
|
|
$
5.01
|
Tangible book value
per share
|
|
$
18.02
|
|
$
17.67
|
|
$
17.12
|
|
$
16.40
|
|
$
16.11
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Reconciliation of
Non-GAAP Financial Measures - Tangible Equity to Tangible
Assets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December 31,
2021
|
|
September 30,
2021
|
|
June 30,
2021
|
|
March 31,
2021
|
|
December 31,
2020
|
|
|
(Dollars in
thousands)
|
Total
stockholders' equity to total assets - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity (numerator)
|
|
$
393,816
|
|
$
387,849
|
|
$
377,768
|
|
$
365,757
|
|
$
360,779
|
Total assets
(denominator)
|
|
3,266,038
|
|
3,154,252
|
|
3,084,755
|
|
3,170,212
|
|
3,084,759
|
Total stockholders'
equity to total assets
|
|
12.06%
|
|
12.30%
|
|
12.25%
|
|
11.54%
|
|
11.70%
|
Tangible equity to
tangible assets - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
393,816
|
|
$
387,849
|
|
$
377,768
|
|
$
365,757
|
|
$
360,779
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
82,432
|
|
83,166
|
|
83,921
|
|
84,676
|
|
85,499
|
Total tangible common
equity (numerator)
|
|
$
311,384
|
|
$
304,683
|
|
$
293,847
|
|
$
281,081
|
|
$
275,280
|
Tangible
assets:
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
3,266,038
|
|
3,154,252
|
|
3,084,755
|
|
3,170,212
|
|
3,084,759
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
82,432
|
|
83,166
|
|
83,921
|
|
84,676
|
|
85,499
|
Total tangible assets
(denominator)
|
|
$
3,183,606
|
|
$
3,071,086
|
|
$
3,000,834
|
|
$
3,085,536
|
|
$
2,999,260
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
|
9.78%
|
|
9.92%
|
|
9.79%
|
|
9.11%
|
|
9.18%
|
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--fourth-quarter-2021-financial-results-301469081.html
SOURCE Spirit of Texas Bancshares, Inc.