Spirit of Texas Bancshares, Inc. Reports Second Quarter 2021 Financial Results

Rhea-AI Summary

Spirit of Texas Bancshares (NASDAQ: STXB) reported strong financial results for Q2 2021, with net income of $12.4 million and diluted EPS of $0.70, up from $7.7 million and $0.44 in Q2 2020. Key highlights include a 47.3% increase in non-interest income and an improved net interest margin of 4.06%. The company successfully managed expenses, with a slight increase of only $151k while maintaining asset quality, as non-performing loans decreased by 23.9%. Loan demand appears strong as they anticipate heightened credit needs in the upcoming quarters.

Positive

• Net income increased to $12.4 million, up 61% YoY.
• Diluted EPS rose to $0.70, compared to $0.44 a year ago.
• Non-interest income increased by $1.2 million, or 47.3%.
• Net interest margin improved to 4.06%, a 12 basis point increase QoQ.
• Non-performing loans decreased by 23.9%, indicating improved asset quality.

Negative

• Gross loans decreased by 6.5% from Q1 2021 and Q2 2020.
• Deposits declined by 1.0% compared to Q1 2021.

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%

 

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SOURCE Spirit of Texas Bancshares, Inc.

FAQ

What were Spirit of Texas Bancshares' Q2 2021 earnings results?

Spirit of Texas Bancshares reported net income of $12.4 million and diluted EPS of $0.70 for Q2 2021.

How did non-interest income perform in Q2 2021 for STXB?

Non-interest income increased by $1.2 million or 47.3% in Q2 2021 compared to Q1 2021.

What is the current loan demand outlook for Spirit of Texas Bancshares?

The company indicates strong loan demand is anticipated for 2021 and 2022.

How did the net interest margin change in Q2 2021 for STXB?

The net interest margin improved to 4.06% in Q2 2021, up from previous quarters.

When will Spirit of Texas Bancshares hold its conference call for Q2 results?

The conference call is scheduled for July 22, 2021, at 10:00 a.m. ET.