Exhibit 99.1

 

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

SPIRIT OF TEXAS BANCSHARES, INC. REPORTS

FIRST QUARTER 2021 FINANCIAL RESULTS

CONROE, TX – April 21, 2021 – Spirit of Texas Bancshares, Inc. (NASDAQ: STXB) (“Spirit,” the “Company,” “we,” “our,” or “us”), reported net income of $10.1 million in the first quarter of 2021, representing diluted earnings per share of $0.58, compared to net income of $4.1 million in the first quarter of 2020, representing diluted earnings per share of $0.22. Strong financial results for the first quarter of 2021 were assisted by $1.8 million net accretion of origination fees on Paycheck Protection Program (“PPP”) loans, and $2.2 million of deferred costs on newly originated PPP loans.

First Quarter 2021 Financial and Operational Highlights

 

•

Originated 1,301 PPP loans during the first quarter of 2021 with a total funded amount of $148.9 million and deferred loan fees, net of $4.8 million which will be recognized over the life of the loans.

 

•

Net interest margin for the first quarter of 2021 as reported and on a tax equivalent basis(1) was 3.94% and 3.98%, respectively.

 

•

At March 31, 2021, return on average assets was 1.32% annualized.

 

•

Book value per share increased to $21.34 at March 31, 2021 and tangible book value per share(1) increased to $16.40 at the same date.

 

•

At March 31, 2021, total stockholders’ equity to total assets was 11.54% and tangible stockholders’ equity to tangible assets(1) was 9.11%.

Dean Bass, Spirit’s Chairman and Chief Executive Officer, stated, “We continue to have success assisting our borrowers obtain funding through government stimulus programs. I am delighted that our customers have placed their faith in our talented group of bankers to help navigate these government programs and obtain critical funding to keep businesses and projects operating. Our strong results for the first quarter of 2021 were also due to cost cutting initiatives that were implemented towards the end of 2020 and have begun to positively impact our financial results. We will continuously look for new, exciting investments and expense saving directives to provide for earnings growth in the coming quarters.

“Asset quality has returned to pre-pandemic levels and we believe that quarters with significantly elevated provision expense are behind us. We will continue to work with the borrowers who need additional assistance due to the ongoing COVID-19 pandemic; however, ultimately we believe that the elevated risk factors appear to be behind us and we can now focus on new growth opportunities,” Mr. Bass concluded.

Loan Portfolio and Composition

During the first quarter of 2021, gross loans increased to $2.43 billion as of March 31, 2021, an increase of 1.7% from $2.39 billion as of December 31, 2020, and an increase of 20.7% from $2.0 billion as of March 31, 2020. During the first quarter of 2021, $60.3 million of the PPP loans we originated during 2020 were forgiven by the U.S. Small Business Administration (“SBA”) and we originated $148.9 million of new PPP loans. Excluding the effect of PPP loan forgiveness and origination, the loan portfolio as of March 31, 2021 declined by $43.6 million, or 7.4% annualized from December 31, 2020. During the first quarter of 2021, we sold $45.2 million of participations out of our commercial real estate portfolio in order to improve concentration percentages. The loan pipeline remains strong to fuel future growth in the portfolio and we anticipate higher loan growth in the second and third quarters of 2021.

Asset Quality

Asset quality remained strong in the first quarter of 2021. Overall, our borrowers continue to recover from the effects of the ongoing COVID-19 pandemic as additional pandemic-related restrictions have been lifted, a meaningful percent of the population in Texas has now been vaccinated, and consumers have received an additional stimulus payment. The provision for loan losses recorded for the first quarter of 2021 was $1.1 million, which served to increase the allowance to $16.3 million, or 0.67% of the $2.43 billion in gross loans outstanding as of March 31, 2021. Provision expense for the first quarter of 2021 related primarily to newly impaired loans.

Nonperforming loans to loans held for investment ratio continues to remain low as of March 31, 2021 at 0.41%, which increased from 0.36% at December 31, 2020, and 0.38% as of March 31, 2020. Annualized net charge-offs were 14 basis points for the first quarter of 2021 compared to 9 basis points for the fourth quarter of 2020.

Borrowers in active deferral periods has declined significantly, with 97% of loans previously on deferment exiting the deferral period and resuming regularly scheduled payments. At March 31, 2021, only $11.6 million of loans remain on deferral.

Deposits and Borrowings

Deposits totaled $2.60 billion as of March 31, 2021, an increase of 5.6% from $2.46 billion as of December 31, 2020, and an increase of 25.0% from $2.08 billion as of March 31, 2020. Noninterest-bearing demand deposits increased $72.7 million, or 10.0%, from December 31, 2020, and increased $313.2 million, or 64.3%, from March 31, 2020. The increase in noninterest-bearing deposits is primarily deposit accounts related to PPP loan funding. Noninterest-bearing demand deposits represented 30.8% of total deposits as of March 31, 2021, up from 29.6% of total deposits as of December 31, 2020, and up from 23.4% of total deposits as of March 31, 2020. Savings and Money Market deposits increased $43.4 million or 7.1%, from December 31, 2020 primarily due to the seasonality of public funds. The average cost of deposits was 0.38% for the first quarter of 2021, representing an 8 basis point decrease from the fourth quarter of 2020 and a 54 basis point decrease from the first quarter of 2020. The decrease in average cost of deposits was due primarily to the repricing of certificates of deposit during the first quarter of 2021.

Borrowings decreased by $61.0 million during the first quarter of 2021 to $191.7 million due primarily to repayment of advances under the Paycheck Protection Program Liquidity Facility with the Board of Governors of the Federal Reserve System. Borrowings totaled 6.1% of total assets at March 31, 2021, compared to 8.2% at December 31, 2020 and 4.5% at March 31, 2020.

Net Interest Margin and Net Interest Income

The net interest margin for the first quarter of 2021 was 3.94%, a decrease of 42 basis points from the fourth quarter of 2020 and a decrease of 44 basis points from the first quarter of 2020. The tax equivalent net interest margin⁽¹⁾ for the first quarter of 2021 was 3.98%, a decrease of 46 basis points from the fourth quarter of 2020 and 42 basis points from the first quarter of 2020. Excluding the impact of PPP loans, the tax equivalent net interest margin for the first quarter of 2021 was 4.02% compared to 4.21% for the fourth quarter of 2020. The decrease in net interest margin and tax equivalent net interest margin compared to prior year and prior quarter is primarily due to the origination of additional PPP loans which yield 1% and lower levels of forgiveness than those experienced in the fourth quarter of 2020. Approximately $6.7 million of net deferred fees remain unamortized at March 31, 2021. During the first quarter of 2021, we moved approximately $200 million of cash into higher yielding securities which should help to improve the net interest margin during the second quarter of 2021. The yield on loans for the first quarter of 2021 was 5.09% compared to 5.42% at December 31, 2020. Excluding the impact of PPP loans, the yield on loans for the first quarter of 2021 was 5.29% compared to 5.30% at December 31, 2020.

Net interest income totaled $27.8 million for the first quarter of 2021, an increase of 17.0% from $23.8 million for the first quarter of 2020. Interest income totaled $31.2 million for the first quarter of 2021, an increase of 8.2% from $28.8 million for the first quarter of 2020. Interest and fees on loans decreased $2.9 million, or 8.8%, compared to the fourth quarter of 2020, and increased by $2.4 million, or 8.8%, from the first quarter of 2020. Interest expense was $3.3 million for the first quarter of 2021, a decrease of 12.9% from $3.8 million for the fourth quarter of 2020 and a decrease of 33.6% from $5.0 million for the first quarter of 2020.

Noninterest Income and Noninterest Expense

Noninterest income totaled $2.6 million for the first quarter of 2021, compared to $8.8 million for the fourth quarter of 2020. This decrease was primarily driven by declines in gain on sale of SBA loans, service charges and fees, and mortgage referral fees of $264 thousand, $120 thousand, and $73 thousand, respectively, partially offset by an increase in SBA servicing fees of $17 thousand. Gain on sale of loans originated through the Main Street Lending Program (the “Main Street Loans”) in the fourth quarter of 2020 of $3.6 million was also nonrecurring given that the program ended during the early first quarter of 2021. Additionally, swap fees were $121 thousand for the first quarter of 2021, compared to $2.4 million for the fourth quarter of 2020.

Noninterest expense totaled $16.6 million in the first quarter of 2021, a decrease of 9.7 % from $18.4 million in the fourth quarter of 2020, primarily due to a decrease in salaries and benefits. The decrease in salaries and benefits was primarily due to deferred costs on PPP loan origination of $2.2 million.

The efficiency ratio was 54.6% in the first quarter of 2021, compared to 47.7% in the fourth quarter of 2020, and 79.1% in the first quarter of 2020. The first quarter of 2021 efficiency ratio was assisted by PPP origination fees immediately recognized at the time of forgiveness by the SBA, and the deferral of salary costs associated with newly originated PPP loans.

 

(1)

Tax Equivalent Net Interest Margin, Tangible Book Value Per Share, Tangible Stockholders’ Equity to Tangible Assets Ratio and certain PPP-related figures are all non-GAAP measures. In Spirit’s judgment, regarding Tax Equivalent Net Interest Margin, the fully tax equivalent basis is the preferred industry measurement basis for net interest margin and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. Regarding Tangible Book Value Per Share and Tangible Stockholders’ Equity To Tangible Assets, Spirit believes that that these measures are important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing its tangible book value. Furthermore, Spirit believes that the PPP-related figures are important to investors due to the anticipated short-term nature of the PPP loans and the expected forgiveness in the coming quarters. The non-GAAP financial measures that we discuss in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures discussed in this earnings release may differ from that of other banking organizations reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures Spirit has discussed in this earnings release when comparing such non-GAAP financial measures. Please see a reconciliation to the nearest respective GAAP measures at the end of this earnings release.

Conference Call

Spirit of Texas Bancshares, Inc. has scheduled a conference call to discuss its first quarter 2021 results, which will be broadcast live over the Internet, on Thursday, April 22, 2021 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call, dial 201-389-0867 and ask for the “Spirit of Texas” call at least 10 minutes prior to the start time, or access it live over the Internet at https://ir.sotb.com/news-events/ir-calendar. For those who cannot listen to the live call, a replay will be available through April 29, 2021, and may be accessed by dialing 201-612-7415 and using pass code 13718707#. Also, an archive of the webcast will be available shortly after the call at https://ir.sotb.com/news-events/ir-calendar for 90 days.

About Spirit of Texas Bancshares, Inc.

Spirit, through its wholly-owned subsidiary, Spirit of Texas Bank SSB (the “Bank”), provides a wide range of relationship-driven commercial banking products and services tailored to meet the needs of businesses, professionals and individuals. The Bank has 38 locations in the Houston, Dallas/Fort Worth, Bryan/College Station, Austin, San Antonio-New Braunfels, Corpus Christi, Austin and Tyler metropolitan areas, along with offices in North Central and South Texas. Please visit https://www.sotb.com for more information.

Forward Looking Statements

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. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Factors that could cause our actual results to differ materially from those described in the forward-looking statements include, among others: (i) changes in

general business, industry or economic conditions, or competition; (ii) the impact of the ongoing COVID-19 pandemic on the Bank’s business, including the impact of actions taken by governmental and regulatory authorities in response to such pandemic, such as the Coronavirus Aid, Relief, and Economic Security Act and the programs established thereunder, and the Bank’s participation in such programs, (iii) changes in any applicable law, rule, regulation, policy, guideline, or practice governing or affecting bank holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (iv) adverse changes or conditions in capital and financial markets; (v) changes in interest rates; (vi) higher-than-expected costs or other difficulties related to integration of combined or merged businesses; (vii) the inability to realize expected cost savings or achieve other anticipated benefits in connection with business combinations and other acquisitions; (viii) changes in the quality or composition of our loan and investment portfolios; (ix) adequacy of loan loss reserves; (x) increased competition; (xi) loss of certain key officers; (xii) continued relationships with major customers; (xiii) deposit attrition; (xiv) rapidly changing technology; (xv) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xvi) changes in the cost of funds, demand for loan products, or demand for financial services; (xvii) other economic, competitive, governmental, or technological factors affecting our operations, markets, products, services, and prices; and (xviii) our success at managing the foregoing items. For a discussion of additional factors that could cause our actual results to differ materially from those described in the forward-looking statements, please see the risk factors discussed in our most recent Annual Report on Form 10-K for the year ended December 31, 2020, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 5, 2021, and our other filings with the SEC.

While forward-looking statements reflect our good-faith beliefs, 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.

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Income

(Unaudited)

 

		For the Three Months Ended
		March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020				December 31, 2020
						(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans		$	29,829			$	32,682			$	29,901			$	29,912			$	27,409			$	32,682
Interest and dividends on investment securities			1,115				914				465				457				504				914
Other interest income			225				101				115				185				900				101
Total interest income			31,169				33,697				30,481				30,554				28,813				33,697
Interest expense:
Interest on deposits			2,327				2,726				3,392				3,945				4,507				2,726
Interest on FHLB advances and other borrowings			1,003				1,099				875				558				508				1,099
Total interest expense			3,330				3,825				4,267				4,503				5,015				3,825
Net interest income			27,839				29,872				26,214				26,051				23,798				29,872
Provision for loan losses			1,086				4,417				2,831				2,838				1,171				4,417
Net interest income after provision for loan losses			26,753				25,455				23,383				23,213				22,627				25,455
Noninterest income:
Service charges and fees			1,434				1,554				1,525				1,270				1,311				1,554
SBA loan servicing fees, net			324				307				619				256				10				307
Mortgage referral fees			274				347				428				357				202				347
Gain on sales of loans, net			155				419				612				326				464				419
Gain (loss) on sales of investment securities			5				—				1,031				—				—				—
Other noninterest income			427				6,153				604				356				725				6,153
Total noninterest income			2,619				8,780				4,819				2,565				2,712				8,780
Noninterest expense:
Salaries and employee benefits			9,220				10,656				11,365				7,946				11,789				10,656
Occupancy and equipment expenses			2,662				2,749				2,222				2,761				2,315				2,749
Professional services			524				521				555				716				895				521
Data processing and network			1,229				1,379				1,002				849				743				1,379
Regulatory assessments and insurance			535				549				517				379				402				549
Amortization of intangibles			823				879				919				919				946				879
Advertising			78				74				333				119				153				74
Marketing			93				60				18				38				160				60
Telephone expense			499				560				563				483				407				560
Conversion expense			—				16				279				69				1,477				16
Other operating expenses			971				984				1,520				1,825				1,673				984
Total noninterest expense			16,634				18,427				19,293				16,104				20,960				18,427
Income before income tax expense			12,738				15,808				8,909				9,674				4,379				15,808
Income tax expense			2,652				3,353				1,821				1,980				305				3,353
Net income		$	10,086			$	12,455			$	7,088			$	7,694			$	4,074			$	12,455
Normalized Adjustments:
Gain on sale of securities		$	(4	)		$	—			$	1,031			$	—			$	—			$	—
Merger related expenses, net			0				19				270				1,283				55				19.00
Adjusted net income			10,082				12,455				6,783				8,977				3,554				12,474
Earnings per common share:
Basic		$	0.59			$	0.73			$	0.41			$	0.44			$	0.22			$	0.73
Diluted			0.58				0.72				0.41				0.44				0.22				0.72
Adjusted Basic			0.59				0.73				0.26				0.44				0.26				0.73
Adjusted Diluted			0.58				0.72				0.26				0.44				0.26				0.72
Weighted average common shares outstanding:
Basic			17,103,981				17,168,091				17,340,898				17,581,959				15,370,480				17,168,091
Diluted			17,518,029				17,336,484				17,383,427				17,612,919				15,771,249				17,336,484

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Unaudited)

 

		March 31, 2021				December 31, 2020				As of September 30, 2020				June 30, 2020				March 31, 2020
		(Dollars in thousands)
Assets:
Cash and due from banks		$	28,879			$	31,396			$	29,345			$	35,248			$	33,946
Interest-bearing deposits in other banks			40,687				231,638				121,739				200,096				193,707
Total cash and cash equivalents			69,566				263,034				151,084				235,344				227,653
Time deposits in other banks			—				—				—				—				245
Investment securities:
Available for sale securities, at fair value			442,576				212,420				119,814				90,878				94,963
Equity investments, at fair value			23,741				24,000				—				—				—
Total investment securities			466,317				236,420				119,814				90,878				94,963
Loans held for sale			1,192				1,470				4,287				7,718				7,765
Loans:
Loans held for investment			2,430,594				2,388,532				2,452,353				2,427,292				2,013,367
Less: allowance for loan and lease losses			(16,314	)			(16,026	)			(12,207	)			(9,905	)			(7,620	)
Loans, net			2,414,280				2,372,506				2,440,146				2,417,387				2,005,747
Premises and equipment, net			81,379				83,348				82,734				79,156				78,594
Accrued interest receivable			10,588				11,199				11,612				12,188				7,314
Other real estate owned and repossessed assets			—				133				302				3,743				3,731
Goodwill			77,681				77,681				77,681				77,966				79,009
Core deposit intangible			6,995				7,818				8,698				9,617				10,536
SBA servicing asset			2,821				2,953				3,051				3,115				3,055
Deferred tax asset, net			2,213				1,085				494				—				—
Bank-owned life insurance			16,057				15,969				15,878				15,787				15,699
Federal Home Loan Bank and other bank stock, at cost			5,727				5,718				5,709				5,696				5,660
Right of use assets			6,058				—				—				—				—
Other assets			9,338				5,425				3,580				4,423				4,526
Total assets		$	3,170,212			$	3,084,759			$	2,925,070			$	2,963,018			$	2,544,497
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Transaction accounts:
Noninterest-bearing		$	800,233			$	727,543			$	667,199			$	745,646			$	487,060
Interest-bearing			1,149,781				1,092,934				940,930				946,969				878,279
Total transaction accounts			1,950,014				1,820,477				1,608,129				1,692,615				1,365,339
Time deposits			647,536				638,658				679,387				722,376				711,968
Total deposits			2,597,550				2,459,135				2,287,516				2,414,991				2,077,307
Accrued interest payable			1,160				1,303				1,321				1,025				1,218
Short-term borrowings			—				10,000				10,000				104,830				10,000
Long-term borrowings			191,687				242,020				267,746				88,246				103,276
Deferred tax liability, net			—				—				—				405				1,706
Operating lease liability			6,231				—				—				—				—
Other liabilities			7,827				11,522				6,966				5,943				5,173
Total liabilities			2,804,455				2,723,980				2,573,549				2,615,440				2,198,680
Stockholders’ Equity:
Common stock			300,591				298,850				298,509				298,176				297,966
Retained earnings			85,246				76,683				65,783				59,907				52,213
Accumulated other comprehensive income (loss)			(3,225	)			1,005				(237	)			1,272				732
Treasury stock			(16,855	)			(15,759	)			(12,534	)			(11,777	)			(5,094	)
Total stockholders’ equity			365,757				360,779				351,521				347,578				345,817
Total liabilities and stockholders’ equity		$	3,170,212			$	3,084,759			$	2,925,070			$	2,963,018			$	2,544,497

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Loan Composition

(Unaudited)

 

		As of
		March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
		(Dollars in thousands)
Loans:
Commercial and industrial loans (1)(2)		$	699,896			$	574,986			$	690,009			$	717,280			$	320,418
Real estate:
1-4 single family residential loans			348,908				364,139				373,220				372,445				382,900
Construction, land and development loans			344,557				415,488				402,476				390,068				405,661
Commercial real estate loans (including multifamily)			964,342				956,743				906,134				843,247				821,952
Consumer loans and leases			9,619				11,738				12,977				19,159				22,398
Municipal and other loans			63,272				65,438				67,537				85,092				60,038
Total loans held in portfolio		$	2,430,594			$	2,388,532			$	2,452,353			$	2,427,292			$	2,013,367

 

(1)	Balance includes $67.4 million, $70.8 million, $72.7 million, $75.1 million, and $75.3 million of the unguaranteed portion of SBA loans as of March 31, 2021 December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020, respectively.

(2)	Balance includes $366.5 million, $276.1 million, $421.1 million, and $384.6 million of PPP loans as of March 31, 2021, December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Deposit Composition

(Unaudited)

 

		As of
		March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
		(Dollars in thousands)
Deposits:
Noninterest-bearing demand deposits		$	800,233			$	727,543			$	667,199			$	745,646			$	487,060
Interest-bearing demand deposits			485,863				472,075				391,396				360,282				334,302
Interest-bearing NOW accounts			9,904				10,288				8,655				31,132				28,376
Savings and money market accounts			654,014				610,571				540,879				555,555				515,601
Time deposits			647,536				638,658				679,387				722,376				711,968
Total deposits		$	2,597,550			$	2,459,135			$	2,287,516			$	2,414,991			$	2,077,307

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)

 

		Three Months Ended
		March 31, 2021												March 31, 2020
		Average Balance (1)				Interest/ Expense				Annualized Yield/Rate				Average Balance (1)				Interest/ Expense				Annualized Yield/Rate
		(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks		$	150,583			$	76				0.20	%		$	231,616			$	852				1.48	%
Loans, including loans held for sale (2)			2,376,657				29,829				5.09	%			1,851,879				27,409				5.94	%
Investment securities and other			339,859				1,264				1.51	%			96,006				552				2.31	%
Total interest-earning assets			2,867,099				31,169				4.41	%			2,179,501				28,813				5.30	%
Noninterest-earning assets			234,544												217,060
Total assets		$	3,101,643											$	2,396,561
Interest-bearing liabilities:
Interest-bearing demand deposits		$	469,287			$	155				0.13	%		$	335,669			$	225				0.27	%
Interest-bearing NOW accounts			10,232				1				0.04	%			27,632				26				0.38	%
Savings and money market accounts			634,828				657				0.42	%			443,449				1,012				0.92	%
Time deposits			643,906				1,514				0.95	%			685,689				3,244				1.90	%
FHLB advances and other borrowings			213,483				1,003				1.91	%			86,809				508				2.35	%
Total interest-bearing liabilities			1,971,736				3,330				0.68	%			1,579,248				5,015				1.27	%
Noninterest-bearing liabilities and shareholders’ equity:
Noninterest-bearing demand deposits			748,785												459,156
Other liabilities			19,072												12,265
Stockholders’ equity			362,050												345,892
Total liabilities and stockholders’ equity		$	3,101,643											$	2,396,561
Net interest rate spread											3.72	%											4.03	%
Net interest income and margin						$	27,839				3.94	%						$	23,798				4.38	%
Net interest income and margin (tax equivalent)(3)						$	28,168				3.98	%						$	23,890				4.40	%

 

(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 March 31, 2021 and December 31, 2020, respectively.

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)

 

		Three Months Ended
		March 31, 2021												December 31, 2020
		Average Balance (1)				Interest/ Expense				Annualized Yield/Rate				Average Balance (1)				Interest/ Expense				Annualized Yield/Rate
		(Dollars in thousands)												(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks		$	150,583			$	76				0.20	%		$	144,349			$	101				0.28	%
Loans, including loans held for sale (2)			2,376,657				29,829				5.09	%			2,394,431				32,682				5.42	%
Investment securities and other			339,859				1,264				1.51	%			177,816				914				2.04	%
Total interest-earning assets			2,867,099				31,169				4.41	%			2,716,596				33,697				4.92	%
Noninterest-earning assets			234,544												274,170
Total assets		$	3,101,643											$	2,990,766
Interest-bearing liabilities:
Interest-bearing demand deposits		$	469,287			$	155				0.13	%		$	413,956			$	156				0.15	%
Interest-bearing NOW accounts			10,232				1				0.04	%			9,510				2				0.08	%
Savings and money market accounts			634,828				657				0.42	%			580,216				648				0.44	%
Time deposits			643,906				1,514				0.95	%			657,726				1,920				1.16	%
FHLB advances and other borrowings			213,483				1,003				1.91	%			263,486				1,099				1.65	%
Total interest-bearing liabilities			1,971,736				3,330				0.68	%			1,924,894				3,825				0.79	%
Noninterest-bearing liabilities and shareholders’ equity:
Noninterest-bearing demand deposits			748,785												702,250
Other liabilities			19,072												7,722
Stockholders’ equity			362,050												355,900
Total liabilities and stockholders’ equity		$	3,101,643											$	2,990,766
Net interest rate spread											3.72	%											4.13	%
Net interest income and margin						$	27,839				3.94	%						$	29,872				4.36	%
Net interest income and margin (tax equivalent)(3)						$	28,168				3.98	%						$	30,384				4.44	%

 

(1)	Average balances presented are derived from daily average balances.

(2)	Includes loans on nonaccrual status.

(3)	In order to make pretax income and resultant yields on tax-exempt loans comparable to those on taxable loans, a tax-equivalent adjustment has been computed using a federal tax rate of 21% for the three months ended March 31, 2021 and December 31, 2020, 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
		March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
		(Dollars in thousands, except per share data)
Basic and diluted earnings per share - GAAP basis:
Net income available to common stockholders		$	10,086			$	12,455			$	7,088			$	7,694			$	4,074
Weighted average number of common shares - basic			17,103,981				17,168,091				17,340,898				17,581,959				18,184,110
Weighted average number of common shares - diluted			17,518,029				17,336,484				17,383,427				17,612,919				18,441,977
Basic earnings per common share		$	0.59			$	0.73			$	0.41			$	0.44			$	0.22
Diluted earnings per common share		$	0.58			$	0.72			$	0.41			$	0.44			$	0.22
Basic and diluted earnings per share - Non-GAAP basis:
Net income		$	10,086			$	12,455			$	7,088			$	7,694			$	4,074
Pre-tax adjustments:
Noninterest income
Gain on sale of investment securities			(5	)			—				(1,031	)			—				—
Noninterest expense
Merger related expenses			—				24				342				69				1,614
Taxes:
NOL Carryback			—												—				(575	)
Tax effect of adjustments			1				(5	)			145				(14	)			(331	)
Adjusted net income		$	10,082			$	12,474			$	6,544			$	7,749			$	4,782
Weighted average number of common shares - basic			17,103,981				17,168,091				17,340,898				17,581,959				18,184,110
Weighted average number of common shares - diluted			17,518,029				17,336,484				17,383,427				17,612,919				18,441,977
Basic earnings per common share - Non-GAAP basis		$	0.59			$	0.73			$	0.38			$	0.44			$	0.26
Diluted earnings per common share - Non-GAAP basis		$	0.58			$	0.72			$	0.38			$	0.44			$	0.26

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
		March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
		(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income		$	27,839			$	29,872			$	26,214			$	26,051			$	23,798
Average interst-earning assets			2,867,099				2,716,596				2,664,355				2,646,903				2,179,501
Net interest margin			3.94	%			4.36	%			3.90	%			3.95	%			4.38	%
Net interest margin - Non-GAAP basis:
Net interest income		$	27,839			$	29,872			$	26,214			$	26,051			$	23,798
Plus:
Impact of fully taxable equivalent adjustment			329				512				446				373				92
Net interest income on a fully taxable equivalent basis		$	28,168			$	30,384			$	26,660			$	26,424			$	23,890
Average interst-earning assets		$	2,867,099			$	2,716,596			$	2,664,355			$	2,646,903			$	2,179,501
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis			3.98	%			4.44	%			3.97	%			4.00	%			4.40	%

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

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

(Unaudited)

 

		As of
		March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020				March 31, 2020
		(Dollars in thousands, except per share data)
Total stockholders’ equity		$	365,757			$	360,779			$	351,521			$	347,578			$	345,817
Less:
Goodwill and other intangible assets			84,676				85,499				86,379				87,583				89,595
Tangible stockholders’ equity		$	281,081			$	275,280			$	265,142			$	259,995			$	256,272
Shares outstanding			17,136,553				17,081,831				17,316,313				17,368,573				17,969,012
Book value per share		$	21.34			$	21.12			$	20.30			$	20.01			$	19.25
Less:
Goodwill and other intangible assets per share			4.94				5.01				4.99				5.04				4.99
Tangible book value per share		$	16.40			$	16.11			$	15.31			$	14.97			$	14.26