Last10K.com

Spirit Of Texas Bancshares, Inc. (STXB) SEC Filing 8-K Material Event for the period ending Wednesday, January 26, 2022

SEC Filings

Spirit Of Texas Bancshares, Inc.

CIK: 1499453 Ticker: STXB

Exhibit 99.1

 

LOGO      

LOGO

 

Contacts:  Dennard Lascar Investor Relations

Ken Dennard / Natalie Hairston

(713) 529-6600

STXB@dennardlascar.com

SPIRIT OF TEXAS BANCSHARES, INC. REPORTS

FOURTH QUARTER 2021 FINANCIAL RESULTS

CONROE, TX – January 26, 2022 – 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.

 

2


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.

 

3


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

 

4


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.

 

5


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 December 31, 2021 and September 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 interst-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 interst-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

View differences made from one to another to evaluate Spirit Of Texas Bancshares, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Spirit Of Texas Bancshares, Inc..

Continue

Assess how Spirit Of Texas Bancshares, Inc.'s management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Spirit Of Texas Bancshares, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

Tools

Financial Statements, Disclosures and Schedules

Inside this 8-K Corporate News

Material Contracts, Statements, Certifications & more

Spirit Of Texas Bancshares, Inc. provided additional information to their SEC Filing as exhibits

Ticker: STXB
CIK: 1499453
Form Type: 8-K Corporate News
Accession Number: 0001193125-22-018388
Submitted to the SEC: Wed Jan 26 2022 5:03:57 PM EST
Accepted by the SEC: Wed Jan 26 2022
Period: Wednesday, January 26, 2022
Industry: State Commercial Banks
Events:
  1. Earnings Release
  2. Financial Exhibit

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/stxb/0001193125-22-018388.htm