CONROE, Texas, Jan. 29, 2020 /PRNewswire/ -- Spirit of Texas
Bancshares, Inc. (NASDAQ: STXB) ("Spirit" or the
"Company"), reported net income of $6.2
million in the fourth quarter of 2019 representing diluted
earnings per share of $0.35.
Net income and diluted earnings per share increased over the same
period in the prior year by 148% and 59%, respectively.
Fourth Quarter 2019 Financial and Operational
Highlights
- Successfully completed the acquisition of Chandler Bancorp,
Inc. and its subsidiary, Citizens State Bank, (together,
"Citizens") on November 5,
2019. The acquisition added approximately $321 million of total assets and seven
full-service branches serving the East
Texas region.
- Strong organic loan growth of $35.9
million for the three months ended December 31, 2019, or 9.6% annualized.
- Return on average assets was 1.11% annualized, which was
unchanged from prior quarter and a 33 basis point increase from the
fourth quarter of 2018.
- At December 31, 2019, book value
per share was $18.93 and tangible
book value per share(1) was $14.56.
- At December 31, 2019, total
stockholders' equity to total assets was 14.50% and tangible
stockholders' equity to tangible assets(1) was
11.54%.
- Diluted earnings per share were $0.35 for the fourth quarter of 2019, compared to
$0.22 for the fourth quarter of
2018. Adjusted diluted earnings per share(1) were
$0.28 for the fourth quarter of
2019. The pre-tax, non-GAAP adjustments for the fourth
quarter of 2019 consisted of a $2.4
million gain on the sale of investment securities and
$821 thousand in merger related
expenses.
- Entered into a Branch Purchase and Assumption Agreement with
Simmons Bank to purchase four branch
offices and one mortgage loan office located in Austin, San
Antonio and Tilden,
Texas. The branch acquisition which will include related loan
and deposit accounts is expected to close during the first quarter
of 2020.
Dean Bass, Spirit's Chairman and
Chief Executive Officer, stated, "Our fourth quarter results
continue to support and validate our acquisition and market
diversification strategy across Texas. Since our IPO nearly two years
ago, we will have expanded the Spirit's presence from 15 locations
to 41 locations after we close the Simmons branch acquisition this
quarter. We continue to believe we are well positioned to
take advantage of more opportunities in our markets, while
providing the highest quality of service to our vibrant and growing
customer base."
Loan Portfolio and Composition
During the fourth quarter of 2019, gross loans grew to
$1.77 billion as of December 31, 2019, an increase of 18.8% from
$1.49 billion as of September 30, 2019, and an increase of 60.2% from
$1.10 billion as of December 31, 2018. Loan growth during the
fourth quarter of 2019 was primarily driven by the Citizens
acquisition which added $247.3
million in loans to the acquired loan portfolio.
During the third and fourth quarter of 2019, the Company executed
strategic banker lift-outs that significantly contributed to the
strong organic loan growth during the fourth quarter of
$35.9 million. We expect these
professionals will generate and maintain meaningful portfolios,
while also continuing our focus on increasing core deposits to fund
loan growth. We intend to continue to seek out talented bankers
that are a good cultural fit and have long standing business
relationships in our markets to continue to drive organic loan
growth.
Additionally, with the Simmons branch acquisitions, we will
expand our presence into the dynamic Austin market and strengthen our presence in
the San Antonio-New Braunfels market. The acquisition will
provide a strong loan portfolio and deposit base and will
complement our franchise. Completion of this transaction, which is
expected in the first quarter of 2020, will allow us to expand our
footprint to serve all major Texas
metropolitan areas.
Asset Quality
Asset quality continued to remain strong in the fourth quarter
of 2019. The provision for loan losses recorded for the fourth
quarter of 2019 was $775 thousand
which served to increase the allowance to $6.7 million, or 0.38% of the $1.77 billion in loans outstanding as of
December 31, 2019. The coverage ratio
on the organic portfolio was 0.57% of the $1.18 billion in organic loans outstanding as of
December 31, 2019. The nonperforming
loans to loans held for investment ratio as of December 31, 2019 decreased to 0.37% from 0.61%
as of September 30, 2019, and 0.46%
at December 31, 2018. Annualized net
charge-offs were 14 basis points for the fourth quarter of 2019,
compared to 22 basis points for the fourth quarter of 2018.
Deposits and Borrowings
Deposits totaled $1.93 billion as
of December 31, 2019, an increase of
21.6% from $1.59 billion as of
September 30, 2019, and an increase
of 63.0% from $1.18 billion as of
December 31, 2018.
Noninterest-bearing demand deposits increased $78.6 million, or 21.5%, from September 30, 2019, and increased $188.0 million, or 73.2% from December
31, 2018. Noninterest-bearing demand deposits represented
23.1% of total deposits as of December 31, 2019, which was
unchanged from September 30, 2019,
and 21.7% of total deposits as of December 30, 2018. The
average cost of deposits was 0.98% for the fourth quarter of 2019,
representing a five basis point decrease from the third quarter of
2019 and a four basis point decrease from the fourth quarter of
2018.
Net Interest Margin and Net Interest Income
The net interest margin for the fourth quarter of 2019 was
4.39%, a decrease of 20 basis points from the third quarter of 2019
and from the fourth quarter of 2018. The tax equivalent net
interest margin(1) for the fourth quarter of 2019
was 4.41%, a decrease of 22 basis points from the third quarter of
2019 and a decrease of 21 basis points from the fourth quarter of
2018. The decline from the third quarter of 2019 is primarily
due to rate resets on interest-earning assets as a result of
decreases in interest rates set by the Federal Open Market
Committee during the third quarter of 2019.
Net interest income totaled $22.2
million for the fourth quarter of 2019, an increase of 60.3%
from $13.9 million for the
fourth quarter of 2018. Interest income totaled $27.1 million for the fourth quarter of 2019, an
increase of 60.0% from $16.9 million
in the same period in 2018. Interest and fees on loans
increased by $9.3 million, or 59.1%,
from the fourth quarter of 2018 due to organic and acquired growth
in the loan portfolio. Interest expense was $4.9 million for the fourth quarter of 2019, an
increase of 58.5% from $3.1 million
for the same period in 2018. The increase from the fourth
quarter of 2018 was primarily due to growth in the deposit base
from acquisitions partially offset by a decrease in the rate paid
on interest-bearing liabilities of six basis points.
Noninterest Income and Noninterest Expense
Noninterest income totaled $5.1
million for the fourth quarter of 2019, compared to
$3.0 million for the fourth quarter
of 2018. The primary components of noninterest income for the
fourth quarter of 2019 were gain on sales of securities of
$2.4 million, gain on sales of loans
of $675 thousand, and net and service
charges and fees of $1.1 million.
Noninterest expense totaled $18.7
million in the fourth quarter of 2019, an increase of 37.5%
from $13.6 million in the same period
of the prior year. This increase was primarily driven by increased
salaries and employee benefits resulting from the Citizen's
acquisition as well as an investment in strategic banker lift-outs
and the amortization of core deposit intangibles related to the
acquisitions of The Comanche National Bank, The First National Bank
of Beeville, and Citizens.
The efficiency ratio was 68.40% in the fourth quarter of 2019,
compared to 80.36% in the fourth quarter of 2018.
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted Basic and
Diluted Earnings Per Share, Tax Equivalent Net Interest Margin,
Tangible Book Value Per Share, and Tangible Stockholders' Equity to
Tangible Assets Ratio are all non-GAAP measures. Spirit believes
that for Adjusted Basic and Diluted Earnings Per Share, the
adjustments made to net income allow investors and analysts to
better assess its basic and diluted earnings per common share by
removing the volatility that is associated with merger-related
expenses and gain on sale of investment securities that are
unrelated to its core business. 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.
The non-GAAP financial measures that we discuss in
this news 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 that
it discusses in this news 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 news release when
comparing such non-GAAP financial measures.
Please see a reconciliation to the nearest respective GAAP measures
at the end of this news release.
|
Conference Call
Spirit of Texas Bancshares has scheduled a conference call to
discuss its fourth quarter 2019 results, which will be broadcast
live over the Internet, on Thursday, January
30, 2020 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 http://ir.sotb.com/events-presentations. For
those who cannot listen to the live call, a replay will be
available through February 6, 2020
and may be accessed by dialing 201-612-7415 and using pass code
13698207#. Also, an archive of the webcast will be available
shortly after the call at http://ir.sotb.com/events-presentations
for 90 days.
About Spirit of Texas Bancshares, Inc.
Spirit, through its wholly-owned subsidiary, Spirit of Texas
Bank, provides a wide range of relationship-driven commercial
banking products and services tailored to meet the needs of
businesses, professionals and individuals. Spirit of Texas
Bank has 36 locations in the Houston, Dallas/Fort
Worth, Bryan/College
Station, San
Antonio-New Braunfels,
Corpus Christi and Tyler metropolitan areas, along with offices
in North Central Texas. Please visit https://www.sotb.com for
more information.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties and are made pursuant
to the safe harbor provisions of Section 27A of the Securities Act
of 1933, as amended. Any statements about our expectations,
beliefs, plans, predictions, protections, forecasts, objectives,
assumptions or future events or performance are not historical
facts and may be forward-looking. Forward-looking statements
are typically, but not exclusively, identified by the use of
forward-looking terminology such as "believes," "expects," "could,"
"may," "will, "should," "seeks," "likely," "intends" "plans," "pro
forma," "projects," "estimates" or "anticipates" or the negative of
these words and phrases or similar words or phrases that are
predictions of or indicate future events or trends and that do not
relate solely to historical matters. You can also identify
forward-looking statements by discussions of strategy, plans or
intentions. Forward-looking statements involve numerous risks
and uncertainties and you should not rely on them as predictions of
future events. The following factors, among others, could
cause actual results and future events to differ materially from
those set forth or contemplated in the forward-looking statements:
risks relating to the possibility that the expected benefits and
synergies and our projections related to the Citizens acquisition
and the Simmons branch acquisitions may not materialize as
expected; that prior to the completion of the pending Simmons
branch acquisition, the target branches could experience
disruptions due to transaction-related uncertainty or other factors
making it more difficult to maintain relationships with employees,
customers, other business partners or governmental entities;
difficulty retaining key employees; business and economic
conditions generally and in the bank and non-bank financial
services industries, nationally and within our local market areas;
our ability to mitigate our risk exposures; our ability to maintain
our historical earnings trends; risks related to the integration of
acquired businesses and any future acquisitions; our ability to
successfully identify and address the risks associated with our
recent, pending and possible future acquisitions; changes in
management personnel; interest rate risk; credit risk associated
with our loan portfolio; deteriorating asset quality and higher
loan charge-offs; time and effort necessary to resolve
nonperforming assets; inaccuracy of the assumptions and estimates
we make in establishing reserves for probable loan losses and other
estimates and projections; lack of liquidity; fluctuations in the
fair value and liquidity of the securities we hold for sale;
impairment of investment securities, goodwill, other intangible
assets or deferred tax assets; our risk management strategies;
increased competition in the bank and non-bank financial services
industries, nationally, regionally or locally, which may adversely
affect pricing and terms; the accuracy of our financial statements
and related disclosures and those of companies we acquire; material
weaknesses in our internal control over financial reporting; system
failures or failures to prevent breaches of our network security;
the institution and outcome of litigation and other legal
proceedings against us or to which we become subject; changes in
federal tax law or policy; the impact of recent and future
legislative and regulatory changes, including changes in banking,
securities and tax laws and regulations, and their application by
our regulators; governmental monetary and fiscal policies;
increases in our capital requirements; and other risks identified
in Spirit's Annual Report on Form 10-K for the year ended
December 31, 2018, filed with the
U.S. Securities and Exchange Commission (the "SEC") on March 15, 2019, its Quarterly Report on Form 10-Q
for the periods ended March 31, 2019,
June 30, 2019, and September 30, 2019 filed with the SEC on
May 10, 2019, August 9, 2019, and November 8, 2019, respectively, and its other
filings with the SEC.
While forward-looking statements reflect our good-faith beliefs,
they are not guarantees of future performance. All
forward-looking statements are necessarily only estimates of future
results. Accordingly, actual results may differ materially
from those expressed in or contemplated by the particular
forward-looking statement, and, therefore, you are cautioned not to
place undue reliance on such statements. Further, any
forward-looking statement speaks only as of the date on which it is
made, and we undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
unanticipated events or circumstances, except as required by
applicable law.
Contacts:
|
Dennard Lascar
Investor Relations
|
|
Ken Dennard / Natalie
Hairston
|
|
(713)
529-6600
|
|
STXB@dennardlascar.com
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Consolidated
Statements of Income
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
December 31,
2019
|
|
September 30,
2019
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
(Dollars in
thousands, except per share data)
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
25,160
|
|
$
23,064
|
|
$
22,204
|
|
$
17,118
|
|
$
15,817
|
Interest and
dividends on investment securities
|
|
997
|
|
1,143
|
|
1,302
|
|
1,182
|
|
897
|
Other interest
income
|
|
918
|
|
794
|
|
794
|
|
584
|
|
208
|
Total interest
income
|
|
27,075
|
|
25,001
|
|
24,300
|
|
18,884
|
|
16,922
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
4,434
|
|
4,097
|
|
3,938
|
|
3,071
|
|
2,613
|
Interest on FHLB
advances and other borrowings
|
|
416
|
|
425
|
|
611
|
|
378
|
|
447
|
Total interest
expense
|
|
4,850
|
|
4,522
|
|
4,549
|
|
3,449
|
|
3,060
|
Net interest
income
|
|
22,225
|
|
20,479
|
|
19,751
|
|
15,435
|
|
13,862
|
Provision for loan
losses
|
|
775
|
|
900
|
|
332
|
|
849
|
|
700
|
Net interest
income after provision for loan losses
|
|
21,450
|
|
19,579
|
|
19,419
|
|
14,586
|
|
13,162
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees
|
|
1,146
|
|
866
|
|
969
|
|
729
|
|
649
|
SBA loan servicing
fees
|
|
391
|
|
234
|
|
40
|
|
264
|
|
1,026
|
Mortgage referral
fees
|
|
232
|
|
173
|
|
198
|
|
110
|
|
97
|
Gain on sales of
loans, net
|
|
675
|
|
1,151
|
|
1,384
|
|
804
|
|
1,236
|
Gain (loss) on sales
of investment securities
|
|
2,448
|
|
-
|
|
1,053
|
|
1,081
|
|
-
|
Other noninterest
income
|
|
162
|
|
257
|
|
131
|
|
69
|
|
23
|
Total noninterest
income
|
|
5,054
|
|
2,681
|
|
3,775
|
|
3,057
|
|
3,031
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
10,684
|
|
9,502
|
|
8,765
|
|
7,124
|
|
7,988
|
Occupancy and
equipment expenses
|
|
2,222
|
|
1,710
|
|
1,690
|
|
1,262
|
|
1,479
|
Professional
services
|
|
1,200
|
|
791
|
|
1,022
|
|
1,041
|
|
1,806
|
Data processing and
network
|
|
936
|
|
884
|
|
731
|
|
485
|
|
340
|
Regulatory
assessments and insurance
|
|
265
|
|
(256)
|
|
315
|
|
98
|
|
307
|
Amortization of
intangibles
|
|
1,006
|
|
1,015
|
|
1,006
|
|
603
|
|
390
|
Advertising
|
|
225
|
|
134
|
|
167
|
|
97
|
|
81
|
Marketing
|
|
131
|
|
136
|
|
132
|
|
139
|
|
154
|
Telephone
expense
|
|
226
|
|
289
|
|
338
|
|
140
|
|
82
|
Conversion
expense
|
|
180
|
|
314
|
|
453
|
|
1,151
|
|
160
|
Other operating
expenses
|
|
1,584
|
|
1,037
|
|
1,206
|
|
864
|
|
789
|
Total noninterest
expense
|
|
18,659
|
|
15,556
|
|
15,825
|
|
13,004
|
|
13,576
|
Income before
income tax expense
|
|
7,845
|
|
6,704
|
|
7,369
|
|
4,639
|
|
2,617
|
Income tax
expense
|
|
1,676
|
|
1,374
|
|
1,542
|
|
829
|
|
104
|
Net
income
|
|
$
6,169
|
|
$
5,330
|
|
$
5,827
|
|
$
3,810
|
|
$
2,513
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.35
|
|
$
0.35
|
|
$
0.42
|
|
$
0.31
|
|
$
0.23
|
Diluted
|
|
$
0.35
|
|
$
0.34
|
|
$
0.41
|
|
$
0.30
|
|
$
0.22
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
17,434,954
|
|
15,370,480
|
|
13,765,929
|
|
12,152,558
|
|
10,994,467
|
Diluted
|
|
17,830,538
|
|
15,771,249
|
|
14,236,244
|
|
12,607,445
|
|
11,450,552
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
December
31, 2019
|
|
September
30, 2019
|
|
June
30, 2019
|
|
March
31, 2019
|
|
December
31, 2018
|
|
|
|
|
(Dollars in
thousands)
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
32,490
|
|
$
28,822
|
|
$
26,150
|
|
$
19,397
|
|
$
22,664
|
Interest-bearing
deposits in other banks
|
|
293,467
|
|
122,721
|
|
137,008
|
|
103,265
|
|
66,351
|
|
|
Total cash and cash
equivalents
|
|
325,957
|
|
151,543
|
|
163,158
|
|
122,662
|
|
89,015
|
Time deposits in
other banks
|
|
490
|
|
1,225
|
|
1,225
|
|
-
|
|
-
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale
securities, at fair value
|
|
96,937
|
|
166,669
|
|
171,058
|
|
131,068
|
|
179,461
|
|
|
Total investment
securities
|
|
96,937
|
|
166,669
|
|
171,058
|
|
131,068
|
|
179,461
|
Loans held for
sale
|
|
3,989
|
|
2,784
|
|
2,583
|
|
6,300
|
|
3,945
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
Loans held for
investment
|
|
1,767,182
|
|
1,487,602
|
|
1,418,211
|
|
1,125,855
|
|
1,102,808
|
Less: allowance for
loan and lease losses
|
|
(6,737)
|
|
(6,565)
|
|
(6,277)
|
|
(6,569)
|
|
(6,286)
|
|
Loans, net
|
|
1,760,445
|
|
1,481,037
|
|
1,411,934
|
|
1,119,286
|
|
1,096,522
|
Premises and
equipment, net
|
|
75,150
|
|
65,144
|
|
62,815
|
|
55,237
|
|
53,877
|
Accrued interest
receivable
|
|
6,507
|
|
6,319
|
|
7,039
|
|
4,849
|
|
4,934
|
Other real estate
owned and repossessed assets
|
|
3,653
|
|
1,042
|
|
1,324
|
|
518
|
|
782
|
Goodwill
|
|
68,324
|
|
43,086
|
|
43,889
|
|
18,253
|
|
18,253
|
Core deposit
intangible
|
|
11,472
|
|
11,628
|
|
12,583
|
|
7,954
|
|
8,558
|
SBA servicing
asset
|
|
3,355
|
|
3,548
|
|
3,570
|
|
3,747
|
|
3,965
|
Deferred tax asset,
net
|
|
-
|
|
-
|
|
48
|
|
-
|
|
328
|
Bank-owned life
insurance
|
|
15,610
|
|
15,521
|
|
15,432
|
|
7,442
|
|
7,401
|
Federal Home Loan
Bank and other bank stock, at cost
|
|
8,310
|
|
6,233
|
|
6,190
|
|
5,264
|
|
5,304
|
Other
assets
|
|
4,603
|
|
4,005
|
|
4,485
|
|
4,464
|
|
4,276
|
|
|
Total
assets
|
|
$
2,384,802
|
|
$
1,959,784
|
|
$
1,907,333
|
|
$
1,487,044
|
|
$
1,476,621
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
accounts:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$
444,822
|
|
$
366,209
|
|
$
367,892
|
|
$
258,440
|
|
$
256,784
|
|
Interest-bearing
|
|
803,557
|
|
593,064
|
|
569,839
|
|
363,326
|
|
378,822
|
|
|
Total transaction
accounts
|
|
1,248,379
|
|
959,273
|
|
937,731
|
|
621,766
|
|
635,606
|
|
Time
deposits
|
|
679,747
|
|
625,940
|
|
632,873
|
|
581,486
|
|
547,042
|
|
|
Total
deposits
|
|
1,928,126
|
|
1,585,213
|
|
1,570,604
|
|
1,203,252
|
|
1,182,648
|
Accrued interest
payable
|
|
1,219
|
|
1,002
|
|
1,134
|
|
737
|
|
702
|
Short-term
borrowings
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12,500
|
Long-term
borrowings
|
|
105,140
|
|
74,165
|
|
89,398
|
|
75,536
|
|
77,784
|
Deferred tax
liability, net
|
|
852
|
|
215
|
|
-
|
|
449
|
|
-
|
Other
liabilities
|
|
3,760
|
|
2,451
|
|
2,087
|
|
3,094
|
|
4,191
|
|
|
Total
liabilities
|
|
2,039,097
|
|
1,663,046
|
|
1,663,223
|
|
1,283,068
|
|
1,277,825
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
297,188
|
|
251,875
|
|
204,974
|
|
171,159
|
|
169,939
|
Retained
earnings
|
|
48,139
|
|
41,970
|
|
36,640
|
|
30,813
|
|
27,003
|
Accumulated other
comprehensive income (loss)
|
|
667
|
|
3,091
|
|
2,496
|
|
2,004
|
|
1,854
|
Treasury
stock
|
|
(289)
|
|
(198)
|
|
-
|
|
-
|
|
-
|
|
|
Total stockholders'
equity
|
|
345,705
|
|
296,738
|
|
244,110
|
|
203,976
|
|
198,796
|
|
|
Total liabilities
and stockholders' equity
|
|
$
2,384,802
|
|
$
1,959,784
|
|
$
1,907,333
|
|
$
1,487,044
|
|
$
1,476,621
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Loan
Composition
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December
31, 2019
|
|
September
30, 2019
|
|
June
30, 2019
|
|
March
31, 2019
|
|
December
31, 2018
|
|
|
(Dollars in
thousands)
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial loans (1)
|
|
$
282,949
|
|
$
248,745
|
|
$
197,774
|
|
$
162,934
|
|
$
173,892
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
1-4 single family
residential loans
|
|
375,743
|
|
321,044
|
|
281,514
|
|
284,780
|
|
279,665
|
Construction, land
and development loans
|
|
259,384
|
|
233,830
|
|
176,567
|
|
169,919
|
|
159,734
|
Commercial real
estate loans (including multifamily)
|
|
753,812
|
|
597,415
|
|
671,900
|
|
423,900
|
|
403,800
|
Consumer loans and
leases
|
|
22,769
|
|
17,663
|
|
20,745
|
|
21,631
|
|
24,378
|
Municipal and other
loans
|
|
72,525
|
|
68,905
|
|
69,711
|
|
62,691
|
|
61,339
|
Total loans held in
portfolio
|
|
$
1,767,182
|
|
$
1,487,602
|
|
$
1,418,211
|
|
$
1,125,855
|
|
$
1,102,808
|
|
(1)
|
Balance includes
$74.2 million, $78.7 million, $71.3 million, $73.5 million and
$76.9 million of the unguaranteed portion of SBA loans as of
December 31, 2019, September 30, 2019, June 30, 2019, March 31,
2019, and December 31, 2018, respectively.
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Deposit
Composition
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December
31, 2019
|
|
September
30, 2019
|
|
June
30, 2019
|
|
March
31, 2019
|
|
December
31, 2018
|
|
|
(Dollars in
thousands)
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
$
444,822
|
|
$
366,209
|
|
$
367,892
|
|
$
258,440
|
|
$
256,784
|
Interest-bearing
demand deposits
|
|
370,467
|
|
303,037
|
|
292,550
|
|
127,182
|
|
124,933
|
Interest-bearing NOW
accounts
|
|
28,204
|
|
8,626
|
|
7,638
|
|
7,509
|
|
7,961
|
Savings and money
market accounts
|
|
404,886
|
|
281,401
|
|
269,651
|
|
228,635
|
|
245,928
|
Time
deposits
|
|
679,747
|
|
625,940
|
|
625,940
|
|
581,486
|
|
547,042
|
Total
deposits
|
|
$
1,928,126
|
|
$
1,585,213
|
|
$
1,563,671
|
|
$
1,203,252
|
|
$
1,182,648
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Average Balances
and Yields
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
2019
|
|
2018
|
|
|
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
|
|
$
191,822
|
|
$
854
|
|
1.77%
|
|
$
19,828
|
|
$
120
|
|
2.40%
|
Loans, including
loans held for sale (2)
|
|
1,655,206
|
|
25,160
|
|
6.03%
|
|
1,045,628
|
|
15,817
|
|
6.00%
|
Investment securities
and other
|
|
156,840
|
|
1,061
|
|
2.68%
|
|
133,669
|
|
985
|
|
2.92%
|
Total
interest-earning assets
|
|
2,003,868
|
|
27,075
|
|
5.36%
|
|
1,199,125
|
|
16,922
|
|
5.60%
|
Noninterest-earning
assets
|
|
196,873
|
|
|
|
|
|
84,889
|
|
|
|
|
Total
assets
|
|
$
2,200,741
|
|
|
|
|
|
$
1,284,014
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
334,819
|
|
$
271
|
|
0.32%
|
|
$
78,237
|
|
$
100
|
|
0.51%
|
Interest-bearing NOW
accounts
|
|
21,430
|
|
20
|
|
0.37%
|
|
8,521
|
|
3
|
|
0.15%
|
Savings and money
market accounts
|
|
358,054
|
|
890
|
|
0.99%
|
|
221,937
|
|
368
|
|
0.66%
|
Time
deposits
|
|
664,435
|
|
3,253
|
|
1.94%
|
|
487,811
|
|
2,142
|
|
1.74%
|
FHLB advances and
other borrowings
|
|
79,174
|
|
416
|
|
2.08%
|
|
82,716
|
|
447
|
|
2.14%
|
Total
interest-bearing liabilities
|
|
1,457,912
|
|
4,850
|
|
1.32%
|
|
879,222
|
|
3,060
|
|
1.38%
|
Noninterest-bearing
liabilities and
shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
421,375
|
|
|
|
|
|
226,976
|
|
|
|
|
Other
liabilities
|
|
3,795
|
|
|
|
|
|
3,281
|
|
|
|
|
Stockholders'
equity
|
|
317,659
|
|
|
|
|
|
174,535
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
2,200,741
|
|
|
|
|
|
$
1,284,014
|
|
|
|
|
Net interest rate
spread
|
|
|
|
|
|
4.04%
|
|
|
|
|
|
4.22%
|
Net interest income
and margin
|
|
|
|
$ 22,225
|
|
4.40%
|
|
|
|
$ 13,862
|
|
4.59%
|
Net interest income
and margin (tax equivalent)(3)
|
|
|
$ 22,352
|
|
4.43%
|
|
|
|
$ 14,076
|
|
4.62%
|
|
(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, 2019 and 2018, respectively.
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Average Balances
and Yields
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2019
|
|
September 30,
2019
|
|
|
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
|
|
191,822
|
|
$
854
|
|
1.77%
|
|
$
135,460
|
|
$
750
|
|
2.20%
|
Loans, including
loans held for sale (2)
|
|
1,655,206
|
|
25,160
|
|
6.03%
|
|
1,458,603
|
|
23,064
|
|
6.27%
|
Investment securities
and other
|
|
156,840
|
|
1,061
|
|
2.68%
|
|
175,369
|
|
1,187
|
|
2.69%
|
Total
interest-earning assets
|
|
2,003,868
|
|
27,075
|
|
5.36%
|
|
1,769,432
|
|
25,001
|
|
5.61%
|
Noninterest-earning
assets
|
|
196,873
|
|
|
|
|
|
150,139
|
|
|
|
|
Total
assets
|
|
$
2,200,741
|
|
|
|
|
|
$
1,919,571
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
334,819
|
|
$
271
|
|
0.32%
|
|
$
285,306
|
|
$
349
|
|
0.49%
|
Interest-bearing NOW
accounts
|
|
21,430
|
|
20
|
|
0.37%
|
|
7,846
|
|
3
|
|
0.15%
|
Savings and money
market accounts
|
|
358,054
|
|
890
|
|
0.99%
|
|
273,662
|
|
579
|
|
0.84%
|
Time
deposits
|
|
664,435
|
|
3,253
|
|
1.94%
|
|
630,969
|
|
3,166
|
|
1.99%
|
FHLB advances and
other borrowings
|
|
79,174
|
|
416
|
|
2.08%
|
|
65,358
|
|
425
|
|
2.58%
|
Total
interest-bearing liabilities
|
|
1,457,912
|
|
4,850
|
|
1.32%
|
|
1,263,141
|
|
4,522
|
|
1.42%
|
Noninterest-bearing
liabilities and
shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
|
421,375
|
|
|
|
|
|
380,997
|
|
|
|
|
Other
liabilities
|
|
3,795
|
|
|
|
|
|
4,232
|
|
|
|
|
Stockholders'
equity
|
|
317,659
|
|
|
|
|
|
271,201
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
2,200,741
|
|
|
|
|
|
$
1,919,571
|
|
|
|
|
Net interest rate
spread
|
|
|
|
|
|
4.04%
|
|
|
|
|
|
4.19%
|
Net interest income
and margin
|
|
|
|
$ 22,225
|
|
4.40%
|
|
|
|
$ 20,479
|
|
4.59%
|
Net interest income
and margin (tax equivalent)(3)
|
|
|
$ 22,352
|
|
4.43%
|
|
|
|
$ 20,632
|
|
4.63%
|
|
(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, 2019 and September 30, 2019, 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,
2019
|
|
September 30,
2019
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
(Dollars in
thousands, except per share data)
|
Basic and diluted
earnings per share - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
6,169
|
|
$
5,330
|
|
$
5,827
|
|
$
3,810
|
|
$
2,513
|
Weighted average
number of common shares - basic
|
|
17,434,954
|
|
15,370,480
|
|
13,765,929
|
|
12,152,558
|
|
10,994,467
|
Weighted average
number of common shares - diluted
|
|
17,830,538
|
|
15,771,249
|
|
14,236,244
|
|
12,607,445
|
|
11,450,552
|
Basic earnings per
common share
|
|
$
0.35
|
|
$
0.35
|
|
$
0.42
|
|
$
0.31
|
|
$
0.23
|
Diluted earnings per
common share
|
|
$
0.35
|
|
$
0.34
|
|
$
0.41
|
|
$
0.30
|
|
$
0.22
|
Basic and diluted
earnings per share - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
6,169
|
|
$
5,330
|
|
$
5,827
|
|
$
3,810
|
|
$
2,513
|
Pre-tax
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
investment securities
|
|
(2,448)
|
|
-
|
|
(1,053)
|
|
(1,081)
|
|
-
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
Merger related
expenses
|
|
821
|
|
1,094
|
|
1,165
|
|
1,778
|
|
1,447
|
Taxes:
|
|
|
|
|
|
|
|
|
|
|
Tax effect of
adjustments
|
|
467
|
|
(193)
|
|
53
|
|
(146)
|
|
(149)
|
Adjusted net
income
|
|
$
5,009
|
|
$
6,231
|
|
$
5,992
|
|
$
4,361
|
|
$
3,811
|
Weighted average
number of common shares - basic
|
|
17,434,954
|
|
15,370,480
|
|
13,765,929
|
|
12,152,558
|
|
10,994,467
|
Weighted average
number of common shares - diluted
|
|
17,830,538
|
|
15,771,249
|
|
14,236,244
|
|
12,607,445
|
|
11,450,552
|
Basic earnings per
common share - Non-GAAP basis
|
|
$
0.29
|
|
$
0.41
|
|
$
0.44
|
|
$
0.36
|
|
$
0.35
|
Diluted earnings per
common share - Non-GAAP basis
|
|
$
0.28
|
|
$
0.40
|
|
$
0.42
|
|
$
0.35
|
|
$
0.33
|
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,
2019
|
|
September 30,
2019
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
(Dollars in
thousands, except per share data)
|
Net interest
margin - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
22,225
|
|
$
20,479
|
|
$
19,751
|
|
$
15,435
|
|
$
13,862
|
Average
interest-earning assets
|
|
2,003,868
|
|
1,769,432
|
|
1,716,799
|
|
1,346,104
|
|
1,199,125
|
Net interest
margin
|
|
4.40%
|
|
4.59%
|
|
4.61%
|
|
4.65%
|
|
4.59%
|
Net interest
margin - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
22,225
|
|
$
20,479
|
|
$
19,751
|
|
$
15,435
|
|
$
13,862
|
Plus:
|
|
|
|
|
|
|
|
|
|
|
Impact of fully
taxable equivalent adjustment
|
|
127
|
|
153
|
|
112
|
|
138
|
|
114
|
Net interest income
on a fully taxable equivalent basis
|
|
$
22,352
|
|
$
20,632
|
|
$
19,863
|
|
$
15,573
|
|
$
13,976
|
Average
interest-earning assets
|
|
2,003,868
|
|
1,769,432
|
|
1,716,799
|
|
1,346,104
|
|
1,199,125
|
Net interest margin
on a fully taxable equivalent basis - Non-GAAP basis
|
|
4.43%
|
|
4.63%
|
|
4.64%
|
|
4.69%
|
|
4.62%
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Reconciliation of
Non-GAAP Financial Measures - Tangible Book Value Per
Share
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December 31,
2019
|
|
September 30,
2019
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
(Dollars in
thousands, except per share data)
|
Total stockholders'
equity
|
|
$
345,705
|
|
$
296,738
|
|
$
244,110
|
|
$
203,976
|
|
$
198,796
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
79,796
|
|
54,714
|
|
56,472
|
|
26,207
|
|
26,811
|
Tangible
stockholders' equity
|
|
$
265,909
|
|
$
242,024
|
|
$
187,638
|
|
$
177,769
|
|
$
171,985
|
Shares
outstanding
|
|
18,258,222
|
|
16,121,479
|
|
13,790,332
|
|
12,195,891
|
|
12,103,753
|
Book value per
share
|
|
$
18.93
|
|
$
18.41
|
|
$
17.70
|
|
$
16.72
|
|
$
16.42
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets per share
|
|
4.37
|
|
3.40
|
|
4.09
|
|
2.14
|
|
2.21
|
Tangible book value
per share
|
|
$
14.56
|
|
$
15.01
|
|
$
13.61
|
|
$
14.58
|
|
$
14.21
|
SPIRIT OF TEXAS
BANCSHARES, INC. AND SUBSIDIARY
|
Reconciliation of
Non-GAAP Financial Measures - Tangible Equity to Tangible
Assets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
December 31,
2019
|
|
September 30,
2019
|
|
June 30,
2019
|
|
March 31,
2019
|
|
December 31,
2018
|
|
|
(Dollars in
thousands)
|
Total
stockholders' equity to total assets - GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity (numerator)
|
|
$
345,705
|
|
$
296,738
|
|
$
244,110
|
|
$
203,976
|
|
$
198,796
|
Total assets
(denominator)
|
|
2,384,802
|
|
1,959,784
|
|
1,907,333
|
|
1,487,044
|
|
1,476,621
|
Total stockholders'
equity to total assets
|
|
14.50%
|
|
15.14%
|
|
12.80%
|
|
13.72%
|
|
13.46%
|
Tangible equity to
tangible assets - Non-GAAP basis:
|
|
|
|
|
|
|
|
|
|
|
Tangible
equity:
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
$
345,705
|
|
$
296,738
|
|
$
244,110
|
|
$
203,976
|
|
$
198,796
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
79,796
|
|
54,714
|
|
56,472
|
|
26,207
|
|
26,811
|
Total tangible common
equity (numerator)
|
|
$
265,909
|
|
$
242,024
|
|
$
187,638
|
|
$
177,769
|
|
$
171,985
|
Tangible
assets:
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
2,384,802
|
|
1,959,784
|
|
1,907,333
|
|
1,487,044
|
|
1,476,621
|
Less:
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other
intangible assets
|
|
79,796
|
|
54,714
|
|
56,472
|
|
26,207
|
|
26,811
|
Total tangible assets
(denominator)
|
|
$
2,305,006
|
|
$
1,905,070
|
|
$
1,850,861
|
|
$
1,460,837
|
|
$
1,449,810
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
|
11.54%
|
|
12.70%
|
|
10.14%
|
|
12.17%
|
|
11.86%
|
View original
content:http://www.prnewswire.com/news-releases/spirit-of-texas-bancshares-inc-reports-fourth-quarter-2019-financial-results-300995675.html
SOURCE Spirit of Texas Bancshares, Inc.