UPDATE - Spirit of Texas Bancshares, Inc. Reports Second Quarter 2018 Financial Results

CONROE, Texas, July 24, 2018 (GLOBE NEWSWIRE) -- Spirit of Texas Bancshares, Inc. STXB (the "Company"), the bank holding company for Spirit of Texas Bank, today reported its results for its second quarter ended June 30, 2018.

Net income increased to $2.7 million in the second quarter 2018 compared to $2.0 million in the second quarter 2017.
Diluted earnings per share was $0.29 in the second quarter 2018 compared to $0.27 in the second quarter 2017.
Reported and Tax Equivalent Net Interest Margin⁽¹⁾ were 4.52% and 4.57%, respectively, for the second quarter 2018, compared to 4.11% and 4.21% for the second quarter of 2017 and 4.41% and 4.46% for the first quarter 2018.
Return on Average Assets⁽²⁾ was 1.02% for the second quarter 2018 compared to 0.81% for the second quarter of 2017.
Return on Average Stockholders' Equity⁽²⁾ was 9.03% for the second quarter 2018 compared to 8.41% for the second quarter of 2017.
Reported and Adjusted Efficiency ratio⁽¹⁾ were 70.09% and 68.81%, respectively, for the second quarter 2018, compared to 72.22% and 71.13%, respectively, for the second quarter of 2017.
Book value per share was $15.12 as of June 30, 2018 compared to $13.76 as of March 31, 2018 and $13.62 as of December 31, 2017. Tangible book value per share⁽¹⁾ was $14.34 as of June 30, 2018 compared to $12.71 as of March 31, 2018 and $12.52 as of December 31, 2017.
Total Stockholders' Equity to Total Assets was 13.74% as of June 30, 2018 compared to 9.91% as of March 31, 2018 and 9.62% as of December 31, 2017. Tangible Equity to Tangible Assets⁽¹⁾ was 13.13% as of June 30, 2018 compared to 9.23% as of March 31, 2018 and 8.92% as of December 31, 2017.

Dean Bass, Spirit of Texas Bancshares' Chairman and Chief Executive Officer, stated, "We are pleased to report solid second quarter results that represented improved profitability and continued organic growth. We are also pleased to have recently announced the acquisition of Comanche National Bank, our eighth acquisition in Texas since our founding and our first since becoming a public company in May 2018. Comanche operates eight full-service banking locations in the North Central Texas area and has a proven history of strong earnings and sound asset quality. Comanche is expected to bolster our existing banking capabilities in North Central Texas and expand our footprint into the deposit-rich counties of Comanche, Jack, Palo Pinto and Parker, located west of the Dallas/Fort Worth metroplex. The transaction is expected to close in the fourth quarter of 2018, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of Comanche's and Spirit's shareholders."

Loan Portfolio and Composition

During the quarter, the loan portfolio, gross of the allowance for loan losses, grew to $917.5 million as of June 30, 2018, an increase of 4% from $882.1 million as of March 31, 2018 and 6% from $869.1 million as of December 31, 2017. Loan growth during the second quarter of 2018 was distributed among our commercial and industrial and real estate portfolios. The Company believes it is well-positioned for diversified loan growth based on our strategic presence in the Houston and Dallas/Fort Worth metropolitan areas, including the recently-announced acquisition of Comanche National Bank in North Central, all of which are expected to continue to benefit from favorable economic conditions.

Asset Quality

The provision for loan losses recorded for the second quarter of 2018 was $635 thousand. The provision for loan losses served to increase the allowance to $6.0 million, or 0.66% of the $917.5 million in loans outstanding. The nonperforming loans to loans held for investment ratio as of June 30, 2018 was 0.44%.

Deposits and Borrowings

Deposits totaled $844.7 million as of June 30, 2018, an increase of 0.4% from $841.0 million as of March 31, 2018 and 1% from $835.4 million as of December 31, 2017. Demand deposits increased by $5.2 million, or 3%, from March 31, 2018 and $6.9 million, or 4%, from December 31, 2017. Demand deposits represent 22% of total deposits as of June 30, 2018, compared to 21% as of both March 31, 2018 and December 31, 2017. The average cost of deposits was 92 basis points for the second quarter of 2018, representing a 12 basis point increase from the second quarter of 2017 and a 7 basis point increase from the first quarter of 2018.

Net Interest Margin and Net Interest Income

The net interest margin for the second quarter of 2018 was 4.52%, an increase of 41 basis points from the second quarter of 2017 and 11 basis points from the first quarter of 2018. The tax equivalent net interest margin for the second quarter of 2018 was 4.57%, an increase of 36 basis points from the second quarter of 2017 and 11 basis points from the first quarter of 2018. The increase from the second quarter of 2017 and the first quarter of 2018 was due primarily to the impact of an increase in interest rates by the Federal Open Market Committee during 2017 and 2018 as well as an increase of average interest-earning assets.

Net interest income totaled $11.1 million in the second quarter of 2018, an increase of 15.5% from $9.6 million in the second quarter of 2017. Interest income totaled $13.5 million in the second quarter of 2018, an increase of 16.1% from $11.6 million in the second quarter of 2017. Interest and fees on loans increased by $1.9 million, or 16.5%, from the second quarter of 2017 due to growth in the loan portfolio and the impact of an increase in interest rates by the Federal Open Market Committee during 2017 and 2018. Interest expense was $2.4 million for the second quarter of 2018, an increase of 18.6% from $2.0 million in the second quarter of 2017. The increase from the second quarter of 2017 was primarily due to an increase in the rate paid on interest-bearing liabilities of 20 basis points.

Noninterest Income and Noninterest Expense

Noninterest income totaled $2.3 million in the second quarter of 2018 when compared to $3.6 million in the second quarter of 2017. The primary components of noninterest income in the quarter were gain on sales of loans, net and SBA loan servicing fees of $1.0 million and $548 thousand, respectively.

Noninterest expense totaled $9.4 million in the second quarter of 2018, a decrease of 1.2% from $9.5 million in the second quarter of 2017.

^{________________________________________________
(1) Tax Equivalent Net Interest Margin, Adjusted Efficiency Ratio, Tangible Book Value Per Share, and Tangible Equity to Tangible Assets Ratio are all non-GAAP measures. Please see a reconciliation to the nearest respective GAAP measures at the end of this news release.}
^{(2) Presented on an annualized basis.}

Conference Call

Spirit of Texas Bancshares has scheduled a conference call to discuss its second quarter 2018 results, which will be broadcast live over the Internet, on Wednesday, July 25, 2018 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 August 1, 2018 and may be accessed by dialing 201-612-7415 and using pass code 13681321#. 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 of Texas Bancshares, Inc., through its wholly owned subsidiary, Spirit of Texas Bank, SSB, provides a wide range of relationship-driven commercial banking products and services tailored to meet the needs of businesses, professionals and individuals. Spirit operates in the Houston, Dallas/Fort Worth and Bryan College Station metropolitan areas. 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 (the "Securities Act"). Words such as "expects," "believes," "estimates," "anticipates," "targets," "goals," "projects," "intends," "plans, "seeks," and variations of such words and similar expressions are intended to identify such forward-looking statements which are not statements of historical fact. These statements are based on current expectations, estimates, forecasts and projections and management assumptions about the future performance of each of Spirit, Comanche and the combined company, as well as the businesses and markets in which they do and are expected to operate. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to assess. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the businesses of Spirit and Comanche may not be combined successfully, or such combination may take longer to accomplish than expected; (2) the cost savings from the transaction may not be fully realized or may take longer to realize than expected; (3) operating costs, customer loss and business disruption following the transaction, including adverse effects on relationships with employees, may be greater than expected; (4) governmental approvals of the transaction may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the transaction; (5) the companies' respective shareholders may not approve the transaction; (6) adverse governmental or regulatory policies may be enacted; (7) the interest rate environment may further compress margins and adversely affect net interest income; (8) continued diversification of assets and adverse changes to credit quality; (9) difficulties associated with achieving expected future financial results; (10) competition from other financial services companies in Spirit's and Comanche's respective markets; or (11) an economic slowdown that would adversely affect credit quality and loan originations.

For a more complete list and description of such risks and uncertainties, refer to Spirit's Registration Statement on Form S-1, as amended, filed with the Securities and Exchange Commission (the "SEC") on April 26, 2018 and its related prospectus, filed with the SEC on May 4, 2018, as well as other filings made by Spirit with the SEC. Copies of such filings are available for download free of charge from the Investor Relations section of Spirit's website at www.sotb.com.

Any forward-looking statement made by Spirit in this press release speaks only as of the date on which it is made. Factors or events that could cause Spirit's actual results to differ may emerge from time to time, and it is not possible for Spirit to predict all of them. Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Spirit disclaims any intention or obligation to update any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

No Offer or Solicitation
This press release does not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation or an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirement of Section 10 of the Securities Act.

Additional Information about the Transaction and Where to Find It
This communication is being made with respect to the proposed transaction involving Spirit and Comanche. This material is not a solicitation of any vote or approval of the Spirit or Comanche shareholders and is not a substitute for the joint proxy statement/prospectus or any other documents that Spirit and Comanche may send to their respective shareholders in connection with the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities.

In connection with the proposed transaction, Spirit will file with the SEC a Registration Statement on Form S-4 that will include a joint proxy statement of Spirit and Comanche and a prospectus of Spirit, as well as other relevant documents concerning the proposed transaction. Before making any voting or investment decisions, investors and shareholders are urged to read carefully the Registration Statement and the joint proxy statement/prospectus regarding the proposed transaction, as well as any other relevant documents filed with the SEC and any amendments or supplements to those documents, because they will contain important information. Both Spirit and Comanche will mail the joint proxy statement/prospectus to their respective shareholders. Shareholders are also urged to carefully review and consider Spirit's public filings with the SEC, including, but not limited to, its Registration Statement on Form S-1, as amended, filed with the SEC on April 26, 2018 and its related prospectus, filed with the SEC on May 4, 2018, its proxy statement, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K. Copies of the Registration Statement and joint proxy statement/prospectus and other filings incorporated by reference therein, as well as other filings containing information about Spirit, may be obtained as they become available at the SEC's Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from Spirit at www.sotb.com.

Participants in the Transaction
Spirit, Comanche and certain of their respective directors and executive officers, under the SEC's rules, may be deemed to be participants in the solicitation of proxies of Spirit's and Comanche's respective shareholders in connection with the proposed transaction. Information about the directors and executive officers of Spirit and their ownership of Spirit common stock is set forth in the proxy statement for Spirit's 2018 Annual Meeting of Shareholders, as filed with the SEC on Schedule 14A on June 22, 2018. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the joint proxy statement/prospectus regarding the proposed transaction when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.


SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited)



	Three Months Ended June 30,
		2018		2017
	(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans	$	13,078	$	11,228
Interest and dividends on investment securities		195		114
Other interest income		215		278
Total interest income		13,488		11,620
Interest expense:
Interest on deposits		1,941		1,644
Interest on FHLB advances and other borrowings		465		384
Total interest expense		2,406		2,028
Net interest income		11,082		9,592
Provision for loan losses		635		650
Net interest income after provision for loan losses		10,447		8,942
Noninterest income:
Service charges and fees		419		349
SBA loan servicing fees		548		625
Mortgage referral fees		208		243
Gain on sales of loans, net		1,041		2,288
Gain (loss) on sales of other assets		7		45
Other noninterest income		80		4
Total noninterest income		2,303		3,554
Noninterest expense:
Salaries and employee benefits		6,043		5,899
Occupancy and equipment expenses		1,221		1,302
Loan and other real estate related expenses		14		101
Professional services		314		476
Data processing and network		321		313
Regulatory assessments and insurance		266		236
Amortization of intangibles		175		175
Advertising		102		157
Marketing		121		150
Telephone expense		114		81
Other operating expenses		690		604
Total noninterest expense		9,381		9,494
Income before income tax expense		3,369		3,002
Income tax expense		688		993
Net income	$	2,681	$	2,009

Earnings per common share:
Basic	$	0.30	$	0.28
Diluted	$	0.29	$	0.27

Weighted average common shares outstanding:
Basic		8,851,446		7,273,351
Diluted		9,306,029		7,568,921


SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
	As of
	June 30, 2018			March 31, 2018			December 31, 2017
	(Dollars in thousands)
Assets:
Cash and due from banks	$	17,181		$	18,786		$	19,054
Interest-bearing deposits in other banks		35,805			33,509			38,895
Total cash and cash equivalents		52,986			52,295			57,949
Time deposits in other banks		245			245			245
Investment securities:
Available for sale securities, at fair value		34,519			35,802			37,243
Total investment securities		34,519			35,802			37,243
Loans held for sale		7,715			4,530			3,814
Loans:
Loans held for investment		917,521			882,101			869,119
Less: allowance for loan and lease losses		(6,015	)		(5,727	)		(5,652	)
Loans, net		911,506			876,374			863,467
Premises and equipment, net		44,945			43,343			42,189
Accrued interest receivable		3,195			3,115			3,466
Other real estate owned and repossessed assets		289			268			21
Goodwill		4,485			4,485			4,485
Core deposit intangible		3,135			3,311			3,486
SBA servicing asset		3,521			3,512			3,411
Deferred tax asset, net		1,616			1,588			1,480
Bank-owned life insurance		482			480			479
Federal Home Loan Bank and other bank stock, at cost		4,830			4,802			4,812
Other assets		3,207			5,328			3,751
Total assets	$	1,076,676		$	1,039,478		$	1,030,298
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing	$	183,618		$	178,457		$	176,726
Interest-bearing		220,087			235,831			250,491
Total transaction accounts		403,705			414,288			427,217
Time deposits		440,978			426,675			408,151
Total deposits		844,683			840,963			835,368
Accrued interest payable		431			424			407
Short-term borrowings		15,000			15,000			15,000
Long-term borrowings		66,191			75,203			76,411
Other liabilities		2,385			4,909			3,973
Total liabilities		928,690			936,499			931,159
Stockholders' Equity:
Preferred stock		-			-			-
Common stock		127,344			84,952			82,615
Retained earnings		21,719			19,038			17,025
Accumulated other comprehensive income (loss)		(1,077	)		(1,011	)		(501	)
Total stockholders' equity		147,986			102,979			99,139
Total liabilities and stockholders' equity	$	1,076,676		$	1,039,478		$	1,030,298


SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
Loan Composition
(Unaudited)


	As of
	June 30, 2018		March 31, 2018		December 31, 2017
	(Dollars in thousands)
Loans:
Commercial and industrial loans (1)	$	149,988	$	137,400	$	135,040
Real estate:
1-4 single family residential loans		238,606		238,382		232,510
Construction, land and development loans		152,558		143,646		139,470
Commercial real estate loans (including multifamily)		305,405		289,571		285,731
Consumer loans and leases		19,588		20,824		22,736
Municipal and other loans		51,376		52,278		53,632
Total loans held in portfolio	$	917,521	$	882,101	$	869,119

(1) Balance includes $72.4 million, $70.1 million and $67.1 million of the unguaranteed portion of SBA loans as of June 30, 2018, March 31, 2018 and December 31, 2017, respectively.


SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
Deposit Composition
(Unaudited)


	As of
	June 30, 2018		March 31, 2018		December 31, 2017
	(Dollars in thousands)
Deposits:
Noninterest-bearing demand deposits	$	183,618	$	178,457	$	176,726
Interest-bearing NOW accounts		7,404		9,475		7,318
Savings and money market accounts		212,683		226,356		243,173
Time deposits		440,978		426,675		408,151
Total deposits	$	844,683	$	840,963	$	835,368


SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
Average Balances and Yields
(Unaudited)

	Three Months Ended June 30,
		2018						2017
	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	$	41,396	$	183	1.77	%	$	101,749	$	244	0.96	%
Loans, including loans held for sale (2)		901,103		13,078	5.82	%		809,774		11,228	5.56	%
Investment securities and other		40,005		227	2.28	%		24,467		148	2.43	%
Total interest-earning assets		982,504		13,488	5.51	%		935,990		11,620	4.98	%
Noninterest-earning assets		75,278						63,330
Total assets	$	1,057,782					$	999,320
Interest-bearing liabilities:
Interest-bearing NOW accounts	$	8,102	$	3	0.15	%	$	8,776	$	3	0.15	%
Savings and money market accounts		221,792		337	0.61	%		227,244		321	0.57	%
Time deposits		431,666		1,601	1.49	%		437,470		1,320	1.21	%
FHLB advances and other borrowings		85,612		465	2.18	%		71,519		384	2.16	%
Total interest-bearing liabilities		747,172		2,406	1.29	%		745,009		2,028	1.09	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		188,628						154,043
Other liabilities		2,855						4,483
Stockholders' equity		119,127						95,785
Total liabilities and stockholders' equity	$	1,057,782					$	999,320
Net interest rate spread					4.22	%					3.89	%
Net interest income and margin			$	11,082	4.52	%			$	9,592	4.11	%
Net interest income and margin (tax equivalent)(3)			$	11,196	4.57	%			$	9,833	4.21	%

(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% and 34% for the three months ended June 30, 2018 and 2017, respectively.


SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
Average Balances and Yields
(Unaudited)

	Three Months Ended
	June 30, 2018						March 31, 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	$	41,396	$	183	1.77	%	$	27,843	$	124	1.80	%
Loans, including loans held for sale (2)		901,103		13,078	5.82	%		884,521		12,291	5.64	%
Investment securities and other		40,005		227	2.28	%		41,385		238	2.33	%
Total interest-earning assets		982,504		13,488	5.51	%		953,749		12,653	5.38	%
Noninterest-earning assets		75,278						75,945
Total assets	$	1,057,782					$	1,029,694
Interest-bearing liabilities:
Interest-bearing NOW accounts	$	8,102	$	3	0.15	%	$	7,749	$	3	0.15	%
Savings and money market accounts		221,792		337	0.61	%		235,424		342	0.59	%
Time deposits		431,666		1,601	1.49	%		417,016		1,386	1.35	%
FHLB advances and other borrowings		85,612		465	2.18	%		93,509		541	2.35	%
Total interest-bearing liabilities		747,172		2,406	1.29	%		753,698		2,272	1.22	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		188,628						169,688
Other liabilities		2,855						5,392
Stockholders' equity		119,127						100,916
Total liabilities and stockholders' equity	$	1,057,782					$	1,029,694
Net interest rate spread					4.22	%					4.16	%
Net interest income and margin			$	11,082	4.52	%			$	10,381	4.41	%
Net interest income and margin (tax equivalent)(3)			$	11,196	4.57	%			$	10,497	4.46	%

(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, 2018 and March 31, 2018, respectively.

Non-GAAP Financial Measures

Our accounting and reporting policies conform to GAAP, and the prevailing practices in the banking industry. However, we also evaluate our performance based on certain additional financial measures discussed in this release as being a non-GAAP financial measures. We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios or statistical measures calculated using exclusively financial measures calculated in accordance with GAAP.

The non-GAAP financial measures that we discuss in this 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 we discuss in this 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 we have discussed in this release when comparing such non-GAAP financial measures.


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, 2018			March 31, 2018			December 31, 2017
	(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income	$	11,082		$	10,381		$	9,592
Average interest-earning assets		982,504			953,749			935,990
Net interest margin		4.52	%		4.41	%		4.11	%
Net interest margin - Non-GAAP basis:
Net interest income	$	11,082		$	10,381		$	9,592
Plus:
Impact of fully taxable equivalent adjustment		114			116			241
Net interest income on a fully taxable equivalent basis	$	11,196		$	10,497		$	9,833
Average interest-earning assets		982,504			953,749			935,990
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis		4.57	%		4.46	%		4.21	%


SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
Reconciliation of Non-GAAP Financial Measures - Efficiency Ratio
(Unaudited)

	As of or for the Three Months Ended June 30,
		2018			2017

	(Dollars in thousands)
Efficiency ratio - GAAP basis:
Noninterest expense (numerator)	$	9,381		$	9,494
Net interest income plus noninterest income (denominator)		13,385			13,146
Efficiency ratio - GAAP basis		70.09	%		72.22	%
Efficiency ratio - Non-GAAP basis:
Noninterest expense	$	9,381		$	9,494
Less:
Amortization of intangibles		175			175
Adjusted noninterest expense (numerator)	$	9,206		$	9,319
Net interest income		11,082			9,592
Noninterest income		2,303			3,554
Less:
Gain (loss) on sales of other assets		7			45
Adjusted operating revenue (denominator)	$	13,378		$	13,101

Efficiency Ratio - Non-GAAP basis		68.81	%		71.13	%


SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share
(Unaudited)

	As of
	June 30, 2018		March 31, 2018		December 31, 2017
	(Dollars in thousands, except per share data)
Total stockholders' equity	$	147,986	$	102,979	$	99,139
Less:
Goodwill and other intangible assets		7,620		7,796		7,971
Tangible stockholders' equity	$	140,366	$	95,183	$	91,168
Shares outstanding		9,786,611		7,486,611		7,280,183
Book value per share	$	15.12	$	13.76	$	13.62
Less:
Goodwill and other intangible assets per share		0.78		1.05		1.10
Tangible book value per share	$	14.34	$	12.71	$	12.52


SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
Reconciliation of Non-GAAP Financial Measures - Tangible Equity to Tangible Assets
(Unaudited)

	As of
	June 30, 2018			March 31, 2018			December 31, 2017
	(Dollars in thousands)
Total stockholders' equity to total assets - GAAP basis:
Total stockholders' equity (numerator)	$	147,986		$	102,979		$	99,139
Total assets (denominator)		1,076,676			1,039,478			1,030,298
Total stockholders' equity to total assets		13.74	%		9.91	%		9.62	%
Tangible equity to tangible assets - Non-GAAP basis:
Tangible equity:
Total stockholders' equity	$	147,986		$	102,979		$	99,139
Less:
Goodwill and other intangible assets		7,620			7,796			7,971
Total tangible common equity (numerator)	$	140,366		$	95,183		$	91,168
Tangible assets:
Total assets		1,076,676			1,039,478			1,030,298
Less:
Goodwill and other intangible assets		7,620			7,796			7,971
Total tangible assets (denominator)	$	1,069,056		$	1,031,682		$	1,022,327

Tangible equity to tangible assets		13.13	%		9.23	%		8.92	%

Contacts:
Dennard Lascar Investor Relations
Ken Dennard / Natalie Hairston
(713) 529-6600
STXB@dennardlascar.com

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