CONROE, Texas, July 21, 2021 /PRNewswire/ -- Spirit of Texas Bancshares, Inc. (NASDAQ: STXB) ("Spirit," the "Company," "we," "our," or "us") reported net income of $12.4 million in the second quarter of 2021, representing diluted earnings per share of $0.70, compared to net income of $7.7 million in the second quarter of 2020, representing diluted earnings per share of $0.44.  Financial results for the second quarter of 2021 were favorably impacted by $2.4 million net accretion of origination fees from the U.S. Small Business Administration (the "SBA") on Paycheck Protection Program ("PPP") loans.

Second Quarter 2021 Financial and Operational Highlights

  • Non-interest income increased by $1.2 million or 47.3%, during the three months ended June 30, 2021 compared to the three months ended March 31, 2021.
  • Noninterest expense was tightly controlled and only increased by $151 thousand during the three months ended June 30, 2021 compared to the three months ended March 31, 2021.
  • Net interest margin for the second quarter of 2021 as reported and on a tax equivalent basis(1) was 4.06% and 4.14%, respectively.
  • At June 30, 2021, return on average assets was 1.57% annualized.
  • Book value per share increased to $22.01 at June 30, 2021 and tangible book value per share(1) increased to $17.12 at the same date.
  • At June 30, 2021, total stockholders' equity to total assets was 12.25% and tangible stockholders' equity to tangible assets(1) was 9.79%.

Dean Bass, Spirit's Chairman and Chief Executive Officer, stated, "I am extremely pleased to report another quarter of strong financial and operational results. While second quarter net income continues to be assisted by PPP fee income from the SBA, over the past year we have invested heavily in initiatives that increase profitability going forward, even as PPP fee income begins to decline in future quarters. We have fully implemented cost-cutting initiatives across the organization to unlock value where possible and invested in restructuring our SBA loan department to drive growth in non-interest income over the next few quarters. Excess cash has been directed to higher yielding interest earning assets while maintaining sufficient liquidity to fund future loan growth. Finally, we continue to focus on non-interest income growth with our swap product offerings.

"Asset quality continues to improve with second quarter nonperforming loans reaching pandemic lows and charge off activity staying within our historical tolerance range. The economic outlook, both nationally and locally, is strong and we are seeing demand for loans return. As our capital levels continue to improve sequentially, we will build the strength to pursue future strategic opportunities. Overall, I am extremely proud of our team and excited to see what the future holds for Spirit of Texas Bancshares," Mr. Bass concluded.

Loan Portfolio and Composition

During the second quarter of 2021, gross loans decreased to $2.27 billion as of June 30, 2021, a decrease of 6.5% from $2.43 billion as of March 31, 2021, and a decrease of 6.4% from $2.43 billion as of June 30, 2020.  We continue to process a significant volume of PPP loan forgiveness applications from our customers. Excluding the effect of PPP loan forgiveness, the loan portfolio as of June 30, 2021 increased by $17.4 million, or 3.4% annualized from March 31, 2021. We currently see many borrowers maintaining and often accelerating their anticipated need for credit  in 2021 and 2022, which has allowed our current loan pipeline to remain at elevated levels.  Historically, the third and fourth quarters of our fiscal year are periods of higher loan growth for us and we anticipate this trend will continue in 2021.

Asset Quality

Asset quality continues to improve from levels experienced at the height of the COVID-19 pandemic with non-performing loans declining by $2.4 million or 23.9% during the second quarter of 2021 from the first quarter of 2021.  Many of our borrowers have enjoyed a healthy increase in business activity due primarily to heightened demand for goods and services.  The provision for loan losses recorded for the second quarter of 2021 was $1.3 million, which increased the allowance to $16.5 million, or 0.73% of the $2.27 billion in gross loans outstanding as of June 30, 2021. Provision expense for the second quarter of 2021 related primarily to the provisioning of loans moving from acquired loan portfolios to the organic loan portfolio upon their renewal.

Nonperforming loans to loans held for investment ratio continues to remain low at 0.33% as of June 30, 2021, which decreased from 0.41% as of March 31, 2021, and increased from 0.31% as of June 30, 2020.  Annualized net charge-offs were 20 basis points for the second quarter of 2021 compared to 14 basis points for the first quarter of 2021.

Substantially all loans in active deferment related to the COVID-19 pandemic at March 31, 2021 have resumed regularly scheduled payments during the second quarter of 2021, and only $2.6 million of loans remain on deferral as of June 30, 2021.

Deposits and Borrowings

Deposits totaled $2.57 billion as of June 30, 2021, a decrease of 1.0% from $2.60 billion as of March 31, 2021, and an increase of 6.5% from $2.41 billion as of June 30, 2020.  Noninterest-bearing demand deposits decreased $28.2 million, or 3.5%, from March 31, 2021, and increased $26.4 million, or 3.5%, from June 30, 2020. The decrease in noninterest-bearing deposits is primarily due to seasonal factors and deposit accounts related to PPP loans funded during the first quarter of 2021. Noninterest‑bearing demand deposits represented 30.0% of total deposits as of June 30, 2021, down from 30.8% of total deposits as of March 31, 2021, and down from 30.9% of total deposits as of June 30, 2020.  Interest-bearing demand deposits increased $43.6 million, or 9.0%, from March 31, 2021 primarily due to the seasonality of public funds.  The average cost of deposits was 0.32% for the second quarter of 2021, representing a 5 basis point decrease from the first quarter of 2021 and a 34 basis point decrease from the second quarter of 2020.  The decrease in average cost of deposits was due primarily to the continued repricing of certificates of deposit that matured during the second quarter of 2021.

Borrowings decreased by $72.6 million during the second quarter of 2021 to $119.1 million due primarily to repayment of advances under the Paycheck Protection Program Liquidity Facility from the Board of Governors of the Federal Reserve System. Borrowings totaled 3.9% of total assets at June 30, 2021, compared to 6.1% at March 31, 2021 and 6.5% at June 30, 2020.

Net Interest Margin and Net Interest Income

The net interest margin for the second quarter of 2021 was 4.06%, an increase of 12 basis points from the first quarter of 2021 and an increase of 11 basis points from the second quarter of 2020.  The tax equivalent net interest margin(1) for the second quarter of 2021 was 4.14%, an increase of 16 basis points from the first quarter of 2021 and 14 basis points from the second quarter of 2020.  Excluding the impact of PPP loans(1), the tax equivalent net interest margin for the first quarter of 2021 was 4.10% compared to 4.02% for the first quarter of 2021. Approximately $4.8 million of net deferred PPP origination fees remain unamortized at June 30, 2021. The net interest margin for the second quarter was also assisted by a lower average cash balance and higher average investments balance as securities purchased during the first quarter of 2021 earn approximately 130 basis points more than cash. The yield on loans for the second quarter of 2021 was 5.30% compared to 5.09% at March 31, 2021.  Excluding the impact of PPP loans(1), the yield on loans for the second quarter of 2021 was 5.40% compared to 5.29% at March 31, 2021.

Net interest income totaled $29.7 million for the second quarter of 2021, an increase of 6.7% from $27.8 million for the first quarter of 2021.  Interest income totaled $32.8 million for the second quarter of 2021, an increase of 5.1% from $31.2 million for the first quarter of 2021.  Interest and fees on loans increased $1.2 million, or 3.9%, compared to the first quarter of 2021, and increased by $1.1 million, or 3.6%, from the second quarter of 2020.  Interest expense was $3.1 million for the second quarter of 2021, a decrease of 8.3% from $3.3 million for the first quarter of 2021 and a decrease of 32.2% from $4.5 million for the second quarter of 2020. 

Noninterest Income and Noninterest Expense

Noninterest income totaled $3.9 million for the second quarter of 2021, compared to $2.6 million for the first quarter of 2021.  This increase was primarily driven by increased other noninterest income of $1.3 million during the second quarter of 2021, which was comprised of swap fees of $1.4 million compared to swap fees for the first quarter of 2021 of $121 thousand.

Noninterest expense totaled $16.8 million in the second quarter of 2021, an increase of 0.91% from $16.6 million in the first quarter of 2021, which was primarily due to increases in salaries and benefits expense and other operating expense, partially offset by a decrease in data processing and network expense. 

The efficiency ratio was 50.0% in the second quarter of 2021, compared to 54.6% in the first quarter of 2021, and 56.3% in the second quarter of 2020.  The second quarter of 2021 efficiency ratio continues to be assisted by PPP 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 by the SBA continuing 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 second quarter 2021 financial results, which will be broadcast live over the Internet, on Thursday, July 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 July 29, 2021, and may be accessed by dialing 201-612-7415 and using pass code 13721108#. 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 37 locations in the Houston, Dallas/Fort Worth, Bryan/College Station, Austin, San Antonio/New Braunfels, Corpus Christi, and Tyler metropolitan areas, along with offices in North Central and South Texas.  Please visit https://www.sotb.com for more information.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended.  Any statements about our anticipations, expectations, beliefs, plans, predictions, projections, 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, 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 and expectations of the Company's management team, 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







June 30, 2021



March 31, 2021



December 31, 2020



September 30, 2020



June 30, 2020







(Dollars in thousands, except per share data)



Interest income:























Interest and fees on loans



$                               30,995



$                               29,829



$                               32,682



$                               29,901



$                               29,912



Interest and dividends on investment securities



1,641



1,115



914



465



457



Other interest income



118



225



101



115



185



Total interest income



32,754



31,169



33,697



30,481



30,554



Interest expense:























Interest on deposits



2,081



2,327



2,726



3,392



3,945



Interest on FHLB advances and other borrowings



972



1,003



1,099



875



558



Total interest expense



3,053



3,330



3,825



4,267



4,503



Net interest income



29,701



27,839



29,872



26,214



26,051



Provision for loan losses



1,349



1,086



4,417



2,831



2,838



Net interest income after provision for loan losses



28,352



26,753



25,455



23,383



23,213



Noninterest income:























Service charges and fees



1,539



1,434



1,554



1,525



1,270



SBA loan servicing fees, net



203



324



307



619



256



Mortgage referral fees



384



274



347



428



357



Gain on sales of loans, net



-



155



419



612



326



Gain (loss) on sales of investment securities



-



5



-



1,031



-



Other noninterest income



1,732



427



6,153



604



356



Total noninterest income



3,858



2,619



8,780



4,819



2,565



Noninterest expense:























Salaries and employee benefits



9,603



9,220



10,656



11,365



7,946



Occupancy and equipment expenses



2,354



2,662



2,749



2,222



2,761



Professional services



457



524



521



555



716



Data processing and network



931



1,229



1,379



1,002



849



Regulatory assessments and insurance



483



535



549



517



379



Amortization of intangibles



755



823



879



919



919



Advertising



47



78



74



333



119



Marketing



70



93



60



18



38



Telephone expense



599



499



560



563



483



Conversion expense



-



-



16



279



69



Other operating expenses



1,486



971



984



1,520



1,825



Total noninterest expense



16,785



16,634



18,427



19,293



16,104



Income before income tax expense



15,425



12,738



15,808



8,909



9,674



Income tax expense



3,015



2,652



3,353



1,821



1,980



Net income



$                               12,410



$                               10,086



$                               12,455



$                                 7,088



$                                 7,694

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Unaudited)







































As of











June 30,

 2021



March 31,

 2021



December 31,

 2020



September 30, 

2020



June 30,

2020











(Dollars in thousands)

Assets:

























Cash and due from banks



$           57,651



$           28,879



$               31,396



$               29,345



$               35,248

Interest-bearing deposits in other banks



82,448



40,687



231,638



121,739



200,096

               Total cash and cash equivalents



140,099



69,566



263,034



151,084



235,344

Time deposits in other banks



-



-



-



-



-

Investment securities:





















     Available for sale securities, at fair value



434,223



442,576



212,420



119,814



90,878

     Equity investments, at fair value



23,877



23,741



24,000



-



-

               Total investment securities



458,100



466,317



236,420



119,814



90,878

Loans held for sale









3,220



1,192



1,470



4,287



7,718

Loans:

























Loans held for investment



2,272,089



2,430,594



2,388,532



2,452,353



2,427,292

Less: allowance for loan and lease losses



(16,527)



(16,314)



(16,026)



(12,207)



(9,905)

     Loans, net







2,255,562



2,414,280



2,372,506



2,440,146



2,417,387

Premises and equipment, net



79,408



81,379



83,348



82,734



79,156

Accrued interest receivable



9,071



10,588



11,199



11,612



12,188

Other real estate owned and repossessed assets



140



-



133



302



3,743

Goodwill







77,681



77,681



77,681



77,681



77,966

Core deposit intangible



6,240



6,995



7,818



8,698



9,617

SBA servicing asset



2,567



2,821



2,953



3,051



3,115

Deferred tax asset, net



1,962



2,213



1,085



494



-

Bank-owned life insurance



31,161



16,057



15,969



15,878



15,787

Federal Home Loan Bank and other bank stock, at cost



5,734



5,727



5,718



5,709



5,696

Right of use assets



5,569



6,058



-



-



-

Other assets





8,241



9,338



5,425



3,580



4,423

               Total assets



$      3,084,755



$      3,170,212



$          3,084,759



$          2,925,070



$          2,963,018

Liabilities and Stockholders' Equity





















Liabilities:























Deposits:

























     Transaction accounts:





















          Noninterest-bearing



$         772,032



$         800,233



$             727,543



$             667,199



$             745,646

          Interest-bearing



1,192,067



1,149,781



1,092,934



940,930



946,969

               Total transaction accounts



1,964,099



1,950,014



1,820,477



1,608,129



1,692,615

     Time deposits



608,073



647,536



638,658



679,387



722,376

               Total deposits



2,572,172



2,597,550



2,459,135



2,287,516



2,414,991

Accrued interest payable



860



1,160



1,303



1,321



1,025

Short-term borrowings



-



-



10,000



10,000



104,830

Long-term borrowings



119,052



191,687



242,020



267,746



88,246

Deferred tax liability, net



-



-



-



-



405

Operating lease liability



5,730



6,231



-



-



-

Other liabilities





9,173



7,827



11,522



6,966



5,943

               Total liabilities



2,706,987



2,804,455



2,723,980



2,573,549



2,615,440

Stockholders' Equity:





















Common stock





301,202



300,591



298,850



298,509



298,176

Retained earnings



96,111



85,246



76,683



65,783



59,907

Accumulated other comprehensive income (loss)



(2,690)



(3,225)



1,005



(237)



1,272

Treasury stock





(16,855)



(16,855)



(15,759)



(12,534)



(11,777)

               Total stockholders' equity



377,768



365,757



360,779



351,521



347,578

               Total liabilities and stockholders' equity



$      3,084,755



$      3,170,212



$          3,084,759



$          2,925,070



$          2,963,018

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Loan Composition

(Unaudited)

















































As of





June 30,

2021



March 31,

2021



December 31,

2020



September 30,

2020



June 30, 

2020





(Dollars in thousands)

Loans:





















Commercial and industrial loans (1)(2)



$                        535,746



$                        699,896



$                        574,986



$                  690,009



$                        717,280

Real estate:





















1-4 single family residential loans



356,503



348,908



364,139



373,220



372,445

Construction, land and development loans



345,420



344,557



415,488



402,476



390,068

Commercial real estate loans (including multifamily)



964,313



964,342



956,743



906,134



843,247

Consumer loans and leases



8,307



9,619



11,738



12,977



19,159

Municipal and other loans



61,800



63,272



65,438



67,537



85,092

Total loans held in portfolio



$                     2,272,089



$                     2,430,594



$                     2,388,532



$               2,452,353



$                     2,427,292























(1) Balance includes $64.9 million, $67.4 million, $70.8 million, $72.7 million, and $75.1 million, of the unguaranteed portion of SBA loans as of June 30, 2021, March 31, 2021 December 31, 2020,  

September 30, 2020, and June 30, 2020, respectively.





















(2) Balance includes $188.3 million, $366.5 million, $276.1 million, and $421.1 million of PPP loans as of June 30, 2021, 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





June 30,

2021



March 31,

2021



December 31,

2020



September 30,

2020



June 30,

2020













(Dollars in thousands)

Deposits:





















Noninterest-bearing demand deposits



$                        772,032



$                        800,233



$                        727,543



$                        667,199



$                        745,646

Interest-bearing demand deposits



529,512



485,863



472,075



391,396



360,282

Interest-bearing NOW accounts



10,763



9,904



10,288



8,655



31,132

Savings and money market accounts



651,791



654,014



610,571



540,879



555,555

Time deposits



608,074



647,536



638,658



679,387



722,376

Total deposits



$                     2,572,172



$                     2,597,550



$                     2,459,135



$                     2,287,516



$                     2,414,991

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)































Three Months Ended 





June 30, 2021



June 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



$       115,322



$               40



0.14%



$       220,940



$             148



0.27%

Loans, including loans held for sale (2)



2,347,636



30,995



5.30%



2,332,707



29,911



5.14%

Investment securities and other



469,365



1,719



1.47%



93,256



495



2.13%

Total interest-earning assets



2,932,323



32,754



4.48%



2,646,903



30,554



4.63%

Noninterest-earning assets



241,133











228,203









Total assets



$    3,173,456











$    2,875,106









Interest-bearing liabilities:

























Interest-bearing demand deposits



$       518,240



$             159



0.12%



$       346,220



$             175



0.20%

Interest-bearing NOW accounts



10,572



1



0.05%



29,087



18



0.25%

Savings and money market accounts



667,434



691



0.42%



539,533



825



0.61%

Time deposits



622,390



1,230



0.79%



719,498



2,927



1.63%

FHLB advances and other borrowings



184,472



972



2.11%



150,388



558



1.49%

Total interest-bearing liabilities



2,003,108



3,053



0.61%



1,784,726



4,503



1.01%

Noninterest-bearing liabilities and

shareholders' equity:

























Noninterest-bearing demand deposits



782,158











742,542









Other liabilities



281











2,236









Stockholders' equity



387,909











345,602









Total liabilities and stockholders' equity



$    3,173,456











$    2,875,106









Net interest rate spread











3.87%











3.62%

Net interest income and margin







$        29,701



4.06%







$        26,051



3.95%

Net interest income and margin (tax equivalent)(3)





$        30,262



4.14%







$        26,424



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 June 30, 2021 and June 30, 2020, respectively.













 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)































Three Months Ended





June 30, 2021



March 31, 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



115,322



$               40



0.14%



$       150,583



$               76



0.20%

Loans, including loans held for sale (2)



2,347,636



30,995



5.30%



2,376,657



29,829



5.09%

Investment securities and other



469,365



1,719



1.47%



339,859



1,264



1.51%

Total interest-earning assets



2,932,323



32,754



4.48%



2,867,099



31,169



4.41%

Noninterest-earning assets



241,133











234,544









Total assets



$    3,173,456











$    3,101,643









Interest-bearing liabilities:

























Interest-bearing demand deposits



$       518,240



$             159



0.12%



$       469,287



$             155



0.13%

Interest-bearing NOW accounts



10,572



1



0.05%



10,232



1



0.04%

Savings and money market accounts



667,434



691



0.42%



634,828



657



0.42%

Time deposits



622,390



1,230



0.79%



643,906



1,514



0.95%

FHLB advances and other borrowings



184,472



972



2.11%



213,483



1,003



1.91%

Total interest-bearing liabilities



2,003,108



3,053



0.61%



1,971,736



3,330



0.68%

Noninterest-bearing liabilities and

shareholders' equity:

























Noninterest-bearing demand deposits



782,158











748,785









Other liabilities



281











19,072









Stockholders' equity



387,909











362,050









Total liabilities and stockholders' equity



$    3,173,456











$    3,101,643









Net interest rate spread











3.87%











3.72%

Net interest income and margin







$        29,701



4.06%







$        27,839



3.94%

Net interest income and margin (tax equivalent)(3)





$        30,262



4.14%







$        28,168



3.98%



























(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 June 30, 2021 and March 31, 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





June 30, 2021



March 31, 2021



December 31, 2020



September 30, 2020



June 30, 2020





(Dollars in thousands, except per share data)

Basic and diluted earnings per share - GAAP basis:





















Net income available to common stockholders



$            12,410



$                   10,086



$                    12,455



$                         7,088



$                       7,694

Weighted average number of common shares - basic



17,152,217



17,103,981



17,168,091



17,340,898



17,581,959

Weighted average number of common shares - diluted



17,627,958



17,518,029



17,336,484



17,383,427



17,612,919

Basic earnings per common share



$                0.72



$                       0.59



$                        0.73



$                           0.41



$                         0.44

Diluted earnings per common share



$                0.70



$                       0.58



$                        0.72



$                           0.41



$                         0.44

Basic and diluted earnings per share - Non-GAAP basis:





















Net income



$            12,410



$                   10,086



$                    12,455



$                         7,088



$                       7,694

Pre-tax adjustments:





















Noninterest income





















Gain on sale of investment securities



-



(5)



-



(1,031)



-

Noninterest expense





















Merger related expenses



-



-



24



342



69

Taxes:





















   NOL Carryback



-



-











-

Tax effect of adjustments



-



1



(5)



145



(14)

Adjusted net income



$            12,410



$                   10,082



$                    12,474



$                         6,544



$                       7,749

Weighted average number of common shares - basic



17,152,217



17,103,981



17,168,091



17,340,898



17,581,959

Weighted average number of common shares - diluted



17,627,958



17,518,029



17,336,484



17,383,427



17,612,919

Basic earnings per common share - Non-GAAP basis



$                0.72



$                       0.59



$                        0.73



$                           0.38



$                         0.44

Diluted earnings per common share - Non-GAAP basis



$                0.70



$                       0.58



$                        0.72



$                           0.38



$                         0.44

 

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





June 30, 2021



March 31, 2021



December 31, 2020



September 30, 2020



June 30, 2020





(Dollars in thousands, except per share data)

Net interest margin - GAAP basis:





















Net interest income



$                           29,701



$                           27,839



$                           29,872



$                           26,214



$                           26,051

Average interest-earning assets



2,932,323



2,867,099



2,716,596



2,664,355



2,646,903

Net interest margin



4.06%



3.94%



4.36%



3.90%



3.95%

Net interest margin - Non-GAAP basis:





















Net interest income



$                           29,701



$                           27,839



$                           29,872



$                           26,214



$                           26,051

Plus:





















Impact of fully taxable equivalent adjustment



561



329



512



446



373

Net interest income on a fully taxable equivalent basis



$                           30,262



$                           28,168



$                           30,384



$                           26,660



$                           26,424

Average interest-earning assets



2,932,323



2,867,099



2,716,596



2,664,355



2,646,903

Net interest margin on a fully taxable equivalent basis - Non-GAAP basis



4.14%



3.98%



4.44%



3.97%



4.00%

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share

(Unaudited)



























As of





June 30, 2021



March 31, 2021



December 31, 2020



September 30, 2020



June 30, 2020





(Dollars in thousands, except per share data)

Total stockholders' equity



$                      377,768



$                      365,757



$                      360,779



$                      351,521



$                      347,578

Less:





















Goodwill and other intangible assets



83,921



84,676



85,499



86,379



87,583

Tangible stockholders' equity



$                      293,847



$                      281,081



$                      275,280



$                      265,142



$                      259,995

Shares outstanding



17,164,103



17,136,553



17,081,831



17,316,313



17,368,573

Book value per share



$                          22.01



$                          21.34



$                          21.12



$                          20.30



$                          20.01

Less:





















Goodwill and other intangible assets per share



$                            4.89



$                            4.94



$                            5.01



4.99



5.04

Tangible book value per share



$                          17.12



$                          16.40



$                          16.11



$                          15.31



$                          14.97

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures - Tangible Equity to Tangible Assets

(Unaudited)



























As of 





June 30, 2021



March 31, 2021



December 31, 2020



September 30, 2020



June 30, 2020





(Dollars in thousands)

Total stockholders' equity to total assets - GAAP basis:





















Total stockholders' equity (numerator)



$                        377,768



$                        365,757



$                        360,779



$                        351,521



$                        347,578

Total assets (denominator)



3,084,755



3,170,212



3,084,759



2,925,070



2,963,018

Total stockholders' equity to total assets



12.25%



11.54%



11.70%



12.02%



11.73%

Tangible equity to tangible assets - Non-GAAP basis:





















Tangible equity:





















Total stockholders' equity



$                        377,768



$                        365,757



$                        360,779



$                        351,521



$                        347,578

Less:





















Goodwill and other intangible assets



83,921



84,676



85,499



86,379



87,583

Total tangible common equity (numerator)



$                        293,847



$                        281,081



$                        275,280



$                        265,142



$                        259,995

Tangible assets:





















Total assets



3,084,755



3,170,212



3,084,759



2,925,070



2,963,018

Less:





















Goodwill and other intangible assets



83,921



84,676



85,499



86,379



87,583

Total tangible assets (denominator)



$                     3,000,834



$                     3,085,536



$                     2,999,260



$                     2,838,691



$                     2,875,435























Tangible equity to tangible assets



9.79%



9.11%



9.18%



9.34%



9.04%

 

Cision View original content:https://www.prnewswire.com/news-releases/spirit-of-texas-bancshares-inc-reports-second-quarter-2021-financial-results-301338891.html

SOURCE Spirit of Texas Bancshares, Inc.

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