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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%

 

SOURCE Spirit of Texas Bancshares, Inc.

 
 

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