SPIRIT OF TEXAS BANCSHARES, INC. REPORTS FOURTH QUARTER 2021 FINANCIAL RESULTS

Rhea-AI Summary

Spirit of Texas Bancshares (NASDAQ: STXB) reported a net income of $9.1 million for Q4 2021, down from $12.5 million in Q4 2020, with diluted EPS of $0.51 compared to $0.72. The decline was influenced by lower gains from loan sales and increased merger-related expenses. Gross loans rose to $2.32 billion, a 3.08% increase from Q3 2021, and loan demand remains robust with a $1 billion pipeline. However, net interest margin decreased to 3.87%, reflecting higher cash balances. Total deposits increased by 4.2% to $2.78 billion, while non-interest income grew to $4.3 million.

Positive

• Loans held for investment increased by 24.3% annualized, excluding PPP impacts.
• Total deposits rose by 4.2% year-over-year to $2.78 billion.
• Book value per share increased to $22.79, up from $22.49 in Q3 2021.
• Return on average assets improved to 1.13%.

Negative

• Net income decreased to $9.1 million from $12.5 million year-over-year.
• Net interest margin decreased from 4.36% in Q4 2020 to 3.87%.
• Noninterest income fell significantly from $8.8 million in Q4 2020 to $4.3 million in Q4 2021.
• Efficiency ratio worsened to 61.9% from 47.7% in Q4 2020.

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.

FAQ

What was Spirit of Texas Bancshares' net income for Q4 2021?

Spirit of Texas Bancshares reported a net income of $9.1 million for Q4 2021.

How did diluted EPS change for STXB in Q4 2021 compared to Q4 2020?

Diluted EPS for STXB was $0.51 in Q4 2021, down from $0.72 in Q4 2020.

What were the total deposits reported by STXB as of December 31, 2021?

As of December 31, 2021, total deposits were $2.78 billion.

How much did net interest margin decrease for Spirit of Texas Bancshares?

Net interest margin decreased to 3.87% in Q4 2021.

What is the outlook for loan growth for STXB after PPP loans?

Loan growth is expected to continue positively as only 237 PPP loans remain outstanding.