Spirit of Texas Bancshares, Inc. Reports Third Quarter 2019 Financial Results

CONROE, Texas, Oct. 22, 2019 /PRNewswire/ -- Spirit of Texas Bancshares, Inc. STXB ("Spirit" or the "Company"), the bank holding company for Spirit of Texas Bank, today reported its results as of and for the three months ended September 30, 2019.

Third Quarter 2019 Financial and Operational Highlights

  • Net income for the third quarter of 2019 increased to $5.3 million, compared to $2.8 million in the third quarter of 2018. Adjusted net income(1) for the third quarter of 2019 was $6.2 million, which excluded $901 thousand of after-tax, merger-related expenses.
  • Diluted earnings per share were $0.34 for the third quarter of 2019, compared to $0.27 for the third quarter of 2018. Adjusted diluted earnings per share(1) were $0.40 for the third quarter of 2019, which excluded $901 thousand of after-tax, merger-related expenses.
  • Reported and tax equivalent net interest margin(1) were 4.59% and 4.63%, respectively.
  • Organic loan growth of $69.4 million for the three months ended September 30, 2019, or 19.41% annualized.
  • Return on average assets was 1.10% annualized and adjusted return on average assets was 1.29% annualized, excluding $901 thousand of after-tax, merger-related expenses.
  • At September 30, 2019, book value per share was $18.41 and tangible book value per share(1) was $15.01.
  • At September 30, 2019, total stockholders' equity to total assets was 15.14% and tangible stockholders' equity to tangible assets(1) was 12.70%.

Dean Bass, Spirit's Chairman and Chief Executive Officer, stated, "We are pleased with our performance during the third quarter and believe we are well positioned to take advantage of opportunities in our markets while serving our strong and growing customer base.  Our acquisition of Chandler Bancorp, Inc. and its subsidiary, Citizens State Bank, (together, "Citizens") that we announced last quarter is on track to close in the fourth quarter of 2019, subject to the satisfaction of customary closing conditions and regulatory approvals.  The Citizen transaction represents an exciting strategic and financial opportunity for us to expand our footprint into the East Texas region, and to better serve our growing customer base through a total of 36 well placed locations across strategic parts of Texas."

Loan Portfolio and Composition

During the third quarter of 2019, gross loans grew to $1.49 billion as of September 30, 2019, an increase of 4.9% from $1.42 billion as of June 30, 2019, and an increase of 54.9% from $960.7 million as of September 30, 2018.  Loan growth during the quarter was primarily driven by significant organic loan growth, while the Company's year-over-year loan growth was primarily driven by its acquisition of Comanche National Corporation in November 2018 (the "Comanche acquisition") and First Beeville Financial Corporation in April 2019 (the "Beeville acquisition").

Asset Quality

The provision for loan losses recorded for the third quarter of 2019 was $900 thousand. The provision for loan losses served to increase the allowance to $6.6 million, or 0.44% of the $1.49 billion in loans outstanding as of September 30, 2019. The nonperforming loans to loans held for investment ratio as of September 30, 2019 increased to 0.61% from 0.40% as of June 30, 2019, and 0.39% at September 30, 2018. Annualized net charge-offs were 17 basis points for the third quarter of 2019, compared to 14 basis points for the third quarter of 2018.

Deposits and Borrowings

Deposits totaled $1.59 billion as of September 30, 2019, an increase of 0.93% from $1.57 billion as of June 30, 2019, and an increase of 81.7% from $872.6 million as of September 30, 2018.  Noninterest-bearing demand deposits decreased $1.7 million, or 0.46%, from June 30, 2019, and increased $158.5 million, or 76.3% from September 30, 2018. Noninterest-bearing demand deposits represented 23.1% of total deposits as of September 30, 2019, compared to 23.4% of total deposits as of June 30, 2019, and 23.8% of total deposits as of September 30, 2018. The average cost of deposits was 1.03% for the third quarter of 2019, representing a two basis point increase from the second quarter of 2019 and a one basis point increase from the third quarter of 2018.

Net Interest Margin and Net Interest Income

The net interest margin for the third quarter of 2019 was 4.59%, a decrease of two basis points from the second quarter of 2019 and a decrease of one basis points from the third quarter of 2018. The tax equivalent net interest margin for the third quarter of 2019 was 4.63%, a decrease of one basis points from the second quarter of 2019 and a decrease of 2 basis points from the third quarter of 2018.  The decrease from the second quarter of 2019 is primarily due to a decline in the yield of interest-earning assets as a result of the impact of a decrease in interest rates by the Federal Open Market Committee during the third quarter of 2019.

Net interest income totaled $20.5 million for the third quarter of 2019, an increase of 75.2% from $11.7 million for the third quarter of 2018.  Interest income totaled $25.0 million for the third quarter of 2019, an increase of 75.1% from $14.3 million in the same period in 2018.  Interest and fees on loans increased by $9.2 million, or 65.9%, from the third quarter of 2018 due to organic and acquired growth in the loan portfolio. Interest expense was $4.5 million for the third quarter of 2019, an increase of 74.9% from $2.6 million for the same period in 2018. The increase from the third quarter of 2018 was due to an increase in the rate paid on interest-bearing liabilities of 3 basis points and the growth in the deposit base from the Comanche acquisition and the Beeville acquisition.

Noninterest Income and Noninterest Expense

Noninterest income totaled $2.7 million for the third quarter of 2019, compared to $2.6 million for the third quarter of 2018. The primary components of noninterest income for the third quarter of 2019 were a gain on sales of loans, net and service charges and fees of $1.2 million and $866 thousand, respectively. Noninterest expense totaled $15.6 million in the third quarter of 2019, an increase of 51.3% from $10.3 million in the prior year period. This increase was primarily driven by increased salaries and employee benefits and the amortization of core deposit intangibles related to the Comanche acquisition and the Beeville acquisition.

The efficiency ratio was 67.17% in the third quarter of 2019, compared to 72.11% in the third quarter of 2018.

_______________________________________________________

(1)

Adjusted Net Income, 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 Net Income and 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 third quarter 2019 results, which will be broadcast live over the Internet, on Wednesday, October 23, 2019 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 October 30, 2019 and may be accessed by dialing 201-612-7415 and using pass code 13695251#. 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 29 locations in the Houston, Dallas/Fort Worth, Bryan/College Station, San Antonio-New Braunfels and Corpus Christi metropolitan areas, along with offices in North Central Texas.  Please visit https://www.sotb.com for more information.

Forward Looking Statements

This 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: our ability to consummate the equity offering in the size and manner described herein; risks relating to our ability to timely complete, or complete at all, the pending acquisition of Citizens, including the possibility that the expected benefits and synergies and our projections related to the acquisitions may not materialize as expected; that prior to the completion of the pending acquisition of Citizens, the target's businesses 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 (including our pending acquisition of Citizens) 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; our actual financial results for the three months ended September 30, 2019 may differ materially from the preliminary financial estimates we have provided as a result of the completion of our financial closing procedures, final adjustments and other developments arising between now and the time that our financial results for such periods are finalized; 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 and June 30, 2019, filed with the SEC on May 10, 2019 and August 9, 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



September 30, 2019



June 30, 2019



March 31, 2019



December 31, 2018



September 30, 2018



(Dollars in thousands, except per share data)

Interest income:



















Interest and fees on loans

$                    23,064



$           22,204



$               17,118



$                     15,817



$                      13,901

Interest and dividends on investment securities

1,143



1,302



1,182



897



202

Other interest income

794



794



584



208



173

Total interest income

25,001



24,300



18,884



16,922



14,276

Interest expense:



















Interest on deposits

4,097



3,938



3,071



2,613



2,197

Interest on FHLB advances and other borrowings

425



611



378



447



389

Total interest expense

4,522



4,549



3,449



3,060



2,586

Net interest income

20,479



19,751



15,435



13,862



11,690

Provision for loan losses

900



332



849



700



486

Net interest income after provision for loan losses

19,579



19,419



14,586



13,162



11,204

Noninterest income:



















Service charges and fees

866



969



729



649



462

SBA loan servicing fees

234



40



264



1,026



529

Mortgage referral fees

173



198



110



97



160

Gain on sales of loans, net

1,151



1,384



804



1,236



1,369

Gain on sales of investment securities

-



1,053



1,081



-



-

Other noninterest income

257



131



69



23



47

Total noninterest income

2,681



3,775



3,057



3,031



2,567

Noninterest expense:



















Salaries and employee benefits

9,502



8,765



7,124



7,988



6,623

Occupancy and equipment expenses

1,710



1,690



1,262



1,479



1,279

Professional services

791



1,022



1,041



1,806



624

Data processing and network

884



731



485



340



302

Regulatory assessments and insurance

(256)



315



98



307



266

Amortization of intangibles

1,015



1,006



603



390



176

Advertising

134



167



97



81



83

Marketing

136



132



139



154



115

Telephone expense

289



338



140



82



120

Conversion expense

314



453



1,151



160



-

Other operating expenses

1,037



1,206



864



789



693

Total noninterest expense

15,556



15,825



13,004



13,576



10,281

Income before income tax expense

6,704



7,369



4,639



2,617



3,490

Income tax expense

1,374



1,542



829



104



719

Net income

$                      5,330



$             5,827



$                 3,810



$                       2,513



$                        2,771





















Earnings per common share:



















Basic

$                        0.35



$               0.42



$                   0.31



$                         0.23



$                          0.28

Diluted

$                        0.34



$               0.41



$                   0.30



$                         0.22



$                          0.27





















Weighted average common shares outstanding: 



















Basic

15,370,480



13,765,929



12,152,558



10,994,467



9,792,032

Diluted

15,771,249



14,236,244



12,607,445



11,450,552



10,360,301

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Unaudited)































As of







September 30,

 2019



June 30,

 2019



March 31,

2019



December 31,

2018



September 30,

2018







(Dollars in thousands)

Assets:



















Cash and due from banks

$      28,822



$      26,150



$      19,397



$          22,664



$           18,212

Interest-bearing deposits in other banks

122,721



137,008



103,265



66,351



25,926





Total cash and cash equivalents

151,543



163,158



122,662



89,015



44,138

Time deposits in other banks

1,225



1,225



-



-



245

Investment securities:





















Available for sale securities, at fair value

166,669



171,058



131,068



179,461



33,449





Total investment securities

166,669



171,058



131,068



179,461



33,449

Loans held for sale

2,784



2,583



6,300



3,945



5,500

Loans:



















Loans held for investment

1,487,602



1,418,211



1,125,855



1,102,808



960,668

Less: allowance for loan and lease losses

(6,565)



(6,277)



(6,569)



(6,286)



(6,156)



Loans, net

1,481,037



1,411,934



1,119,286



1,096,522



954,512

Premises and equipment, net

65,144



62,815



55,237



53,877



46,135

Accrued interest receivable

6,319



7,039



4,849



4,934



3,715

Other real estate owned and repossessed assets

1,042



1,324



518



782



289

Goodwill

43,086



43,889



18,253



18,253



4,485

Core deposit intangible

11,628



12,583



7,954



8,558



2,959

SBA servicing asset

3,548



3,570



3,747



3,965



3,561

Deferred tax asset, net

-



48



-



328



1,667

Bank-owned life insurance

15,521



15,432



7,442



7,401



483

Federal Home Loan Bank and other bank stock, at cost

6,233



6,190



5,264



5,304



4,861

Other assets

4,005



4,485



4,464



4,276



2,806





Total assets

$ 1,959,784



$ 1,907,333



$ 1,487,044



$     1,476,621



$      1,108,805

Liabilities and Stockholders' Equity



















Liabilities:



















Deposits:





















Transaction accounts:





















Noninterest-bearing

$    366,209



$    367,892



$    258,440



$        256,784



$         207,727



Interest-bearing

593,064



569,839



363,326



378,822



222,245





Total transaction accounts

959,273



937,731



621,766



635,606



429,972



Time deposits

625,940



632,873



581,486



547,042



442,638





Total deposits

1,585,213



1,570,604



1,203,252



1,182,648



872,610

Accrued interest payable

1,002



1,134



737



702



475

Short-term borrowings

-



-



-



12,500



10,000

Long-term borrowings

74,165



89,398



75,536



77,784



71,555

Deferred tax liability, net

215



-



449



-



-

Other liabilities

2,451



2,087



3,094



4,191



3,272





Total liabilities

1,663,046



1,663,223



1,283,068



1,277,825



957,912

Stockholders' Equity:



















Common stock

251,875



204,974



171,159



169,939



127,541

Retained earnings

41,970



36,640



30,813



27,003



24,490

Accumulated other comprehensive income (loss)

3,091



2,496



2,004



1,854



(1,138)

Treasury stock

(198)



-



-



-



-





Total stockholders' equity

296,738



244,110



203,976



198,796



150,893





Total liabilities and stockholders' equity

$ 1,959,784



$ 1,907,333



$ 1,487,044



$     1,476,621



$      1,108,805

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Loan Composition

(Unaudited)











































As of



September 30,

2019



June 30,

2019



March 31,

2019



December 31,

2018



September 30,

2018



(Dollars in thousands)

Loans:



















Commercial and industrial loans (1)

$         248,745



$    197,774



$    162,934



$        173,892



$         159,776

Real estate:



















1-4 single family residential loans

321,044



281,514



284,780



279,665



248,788

Construction, land and development loans

233,830



176,567



169,919



159,734



155,778

Commercial real estate loans (including multifamily)

597,415



671,900



423,900



403,800



326,651

Consumer loans and leases

17,663



20,745



21,631



24,378



18,174

Municipal and other loans

68,905



69,711



62,691



61,339



51,501

Total loans held in portfolio

$      1,487,602



$ 1,418,211



$  1,125,855



$     1,102,808



$         960,668



(1) Balance includes $78.7 million, $71.3 million, $73.5 million, $76.9 million and $75.9 million of the unguaranteed portion of SBA loans as of September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively.

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Deposit Composition

(Unaudited)











































As of



September 30,

2019



June 30,

2019



March 31,

2019



December 31,

2018



September 30,

2018



(Dollars in thousands)

Deposits:



















Noninterest-bearing demand deposits

$         366,209



$    367,892



$    258,440



$        256,784



$         207,727

Interest-bearing demand deposits

303,037



292,550



127,182



124,933



-

Interest-bearing NOW accounts

8,626



7,638



7,509



7,961



7,865

Savings and money market accounts

281,401



269,651



228,635



245,928



214,380

Time deposits

625,940



632,873



581,486



547,042



442,638

Total deposits

$      1,585,213



$ 1,570,604



$ 1,203,252



$     1,182,648



$         872,610

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)



























Three Months Ended

September 30,



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

$    135,460



$      750



2.20%



$      24,007



$      140



2.32%

Loans, including loans held for sale (2)

1,458,603



23,064



6.27%



944,429



13,901



5.84%

Investment securities and other

175,369



1,187



2.69%



39,056



235



2.38%

Total interest-earning assets

1,769,432



25,001



5.61%



1,007,492



14,276



5.62%

Noninterest-earning assets

150,139











77,988









Total assets

$ 1,919,571











$ 1,085,480









Interest-bearing liabilities:























Interest-bearing demand deposits

$    285,306



$      349



0.49%



$                -



$           -



0.00%

Interest-bearing NOW accounts

7,846



3



0.15%



7,932



3



0.15%

Savings and money market accounts

273,662



579



0.84%



212,511



338



0.63%

Time deposits

630,969



3,166



1.99%



442,149



1,856



1.67%

FHLB advances and other borrowings

65,358



425



2.58%



77,471



389



1.99%

Total interest-bearing liabilities

1,263,141



4,522



1.42%



740,063



2,586



1.39%

Noninterest-bearing liabilities and

shareholders' equity:























Noninterest-bearing demand deposits

380,997











192,408









Other liabilities

4,232











3,182









Stockholders' equity

271,201











149,827









Total liabilities and stockholders' equity

$ 1,919,571











$ 1,085,480









Net interest rate spread









4.19%











4.23%

Net interest income and margin





$ 20,479



4.59%







$ 11,690



4.60%

Net interest income and margin (tax equivalent)(3)





$ 20,632



4.63%







$ 11,803



4.65%





(1)

Average balances presented are derived from daily average balances.

(2)

Includes loans on nonaccrual status.

(3)

In order to make pretax income and resultant yields on tax-exempt loans comparable to those on taxable loans, a tax-equivalent adjustment has been computed using a federal tax rate of 21% for the three months ended September 30, 2019 and 2018, respectively.

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)



























Three Months Ended



September 30, 2019



June 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

$    135,460



$      750



2.20%



$    120,568



$      742



2.47%

Loans, including loans held for sale (2)

1,458,603



23,064



6.27%



1,419,004



22,204



6.28%

Investment securities and other

175,369



1,187



2.69%



177,227



1,354



3.06%

Total interest-earning assets

1,769,432



25,001



5.61%



1,716,799



24,300



5.68%

Noninterest-earning assets

150,139











143,434









Total assets

$ 1,919,571











$ 1,860,233









Interest-bearing liabilities:























Interest-bearing demand deposits

$    285,306



$      349



0.49%



$    295,274



$      394



0.54%

Interest-bearing NOW accounts

7,846



3



0.15%



7,619



3



0.16%

Savings and money market accounts

273,662



579



0.84%



267,357



588



0.88%

Time deposits

630,969



3,166



1.99%



634,700



2,953



1.87%

FHLB advances and other borrowings

65,358



425



2.58%



75,856



611



3.23%

Total interest-bearing liabilities

1,263,141



4,522



1.42%



1,280,806



4,549



1.42%

Noninterest-bearing liabilities and

shareholders' equity:























Noninterest-bearing demand deposits

380,997











359,559









Other liabilities

4,232











3,228









Stockholders' equity

271,201











216,640









Total liabilities and stockholders' equity

$ 1,919,571











$ 1,860,233









Net interest rate spread









4.19%











4.26%

Net interest income and margin





$ 20,479



4.59%







$ 19,751



4.61%

Net interest income and margin (tax equivalent)(3)





$ 20,632



4.63%







$ 19,863



4.64%





(1)

Average balances presented are derived from daily average balances.

(2)

Includes loans on nonaccrual status.

(3)

In order to make pretax income and resultant yields on tax-exempt loans comparable to those on taxable loans, a tax-equivalent adjustment has been computed using a federal tax rate of 21% for the three months ended September 30, 2019 and June 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



September 30, 2019



June 30, 2019



March 31, 2019



December 31, 2018



September 30, 2018



(Dollars in thousands, except per share data)

Basic and diluted earnings per share - GAAP basis:



















Net income available to common stockholders

$                        5,330



$             5,827



$                 3,810



$                       2,513



$                        2,771

Weighted average number of common shares - basic

15,370,480



13,765,929



12,152,558



10,994,467



9,792,032

Weighted average number of common shares - diluted

15,771,249



14,236,244



12,607,445



11,450,552



10,360,301

Basic earnings per common share

$                          0.35



$               0.42



$                   0.31



$                         0.23



$                          0.28

Diluted earnings per common share

$                          0.34



$               0.41



$                   0.30



$                         0.22



$                          0.27

Basic and diluted earnings per share - Non-GAAP basis:



















Net income

$                        5,330



$             5,827



$                 3,810



$                       2,513



$                        2,771

Pre-tax adjustments:



















Noninterest income



















Gain on sale of investment securities

-



(1,053)



(1,081)



-



-

Noninterest expense



















Merger related expenses

1,094



1,165



1,778



1,447



270

Taxes:



















Tax effect of adjustments

(193)



(168)



(373)



(149)



(55)

Adjusted net income

$                        6,231



$             5,771



$                 4,134



$                       3,811



$                        2,986

Weighted average number of common shares - basic

15,370,480



13,765,929



12,152,558



10,994,467



9,792,032

Weighted average number of common shares - diluted

15,771,249



14,236,244



12,607,445



11,450,552



10,360,301

Basic earnings per common share - Non-GAAP basis

$                          0.41



$               0.42



$                   0.34



$                         0.35



$                          0.30

Diluted earnings per common share - Non-GAAP basis

$                          0.40



$               0.41



$                   0.33



$                         0.33



$                          0.29

 

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



September 30, 2019



June 30, 2019



March 31, 2019



December 31, 2018



September 30, 2018



(Dollars in thousands, except per share data)

Net interest margin - GAAP basis:



















Net interest income

$                      20,479



$           19,751



$               15,435



$                     13,862



$                      11,690

Average interest-earning assets

1,769,432



1,716,799



1,346,104



1,199,125



1,007,492

Net interest margin

4.59%



4.61%



4.65%



4.59%



4.60%

Net interest margin - Non-GAAP basis:



















Net interest income

$                      20,479



$           19,751



$               15,435



$                     13,862



$                      11,690

Plus:



















Impact of fully taxable equivalent adjustment

153



112



138



114



113

Net interest income on a fully taxable equivalent basis

$                      20,632



$           19,863



$               15,573



$                     13,976



$                      11,803

Average interest-earning assets

1,769,432



1,716,799



1,346,104



1,199,125



1,007,492

Net interest margin on a fully taxable equivalent basis - Non-GAAP basis

4.63%



4.64%



4.69%



4.62%



4.65%

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures - Tangible Book Value Per Share

(Unaudited)























As of



September 30, 2019



June 30, 2019



March 31, 2019



December 31, 2018



September 30, 2018



(Dollars in thousands, except per share data)

Total stockholders' equity

$                    296,738



$         244,110



$             203,976



$                   198,796



$                    150,893

Less:



















Goodwill and other intangible assets

54,714



56,472



26,207



26,811



7,444

Tangible stockholders' equity

$                    242,024



$         187,638



$             177,769



$                   171,985



$                    143,449

Shares outstanding

16,121,479



13,790,332



12,195,891



12,103,753



9,812,481

Book value per share

$                        18.41



$             17.70



$                 16.72



$                       16.42



$                        15.38

Less:



















Goodwill and other intangible assets per share

3.40



4.09



2.14



2.21



0.76

Tangible book value per share

$                        15.01



$             13.61



$                 14.58



$                       14.21



$                        14.62

 

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Reconciliation of Non-GAAP Financial Measures - Tangible Equity to Tangible Assets

(Unaudited)























As of 



September 30, 2019



June 30, 2019



March 31, 2019



December 31, 2018



September 30, 2018



(Dollars in thousands)

Total stockholders' equity to total assets - GAAP basis:



















Total stockholders' equity (numerator)

$                    296,738



$         244,110



$             203,976



$                   198,796



$                    150,893

Total assets (denominator)

1,959,784



1,907,333



1,487,044



1,476,621



1,108,805

Total stockholders' equity to total assets

15.14%



12.80%



13.72%



13.46%



13.61%

Tangible equity to tangible assets - Non-GAAP basis:



















Tangible equity:



















Total stockholders' equity

$                    296,738



$         244,110



$             203,976



$                   198,796



$                    150,893

Less:



















Goodwill and other intangible assets

54,714



56,472



26,207



26,811



7,444

Total tangible common equity (numerator)

$                    242,024



$         187,638



$             177,769



$                   171,985



$                    143,449

Tangible assets:



















Total assets

1,959,784



1,907,333



1,487,044



1,476,621



1,108,805

Less:



















Goodwill and other intangible assets

54,714



56,472



26,207



26,811



7,444

Total tangible assets (denominator)

$                 1,905,070



$      1,850,861



$          1,460,837



$                1,449,810



$                 1,101,361





















Tangible equity to tangible assets

12.70%



10.14%



12.17%



11.86%



13.02%

 

Cision View original content:http://www.prnewswire.com/news-releases/spirit-of-texas-bancshares-inc-reports-third-quarter-2019-financial-results-300943277.html

SOURCE Spirit of Texas Bancshares, Inc.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EarningsPress ReleasesBanking/Financial ServicesConference Call Announcements
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!