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

Organic loan growth of $69.4 million for the quarter

Published

CONROE, Texas, Oct. 22, 2019 /PRNewswire/ -- Spirit of Texas Bancshares, Inc. (NASDAQ: 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
(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. Ken Dennard / Natalie Hairston
(713) 529-6600
STXB@dennardlascar.com

 

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income
(713) 529-6600 (Unaudited)
STXB@dennardlascar.com
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

 

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets
(713) 529-6600 (Unaudited) (Unaudited)
STXB@dennardlascar.com
As of
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands)
(Dollars in thousands, except per share data) Assets:
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities:
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans:
Net interest income 20,479 19,751 15,435 13,862 11,690 Loans held for investment 1,487,602 1,418,211 1,125,855 1,102,808 960,668
Provision for loan losses 900 332 849 700 486 Less: allowance for loan and lease losses (6,565) (6,277) (6,569) (6,286) (6,156)
Net interest income after provision for loan losses 19,579 19,419 14,586 13,162 11,204 Loans, net 1,481,037 1,411,934 1,119,286 1,096,522 954,512
Noninterest income: Premises and equipment, net 65,144 62,815 55,237 53,877 46,135
Service charges and fees 866 969 729 649 462 Accrued interest receivable 6,319 7,039 4,849 4,934 3,715
SBA loan servicing fees 234 40 264 1,026 529 Other real estate owned and repossessed assets 1,042 1,324 518 782 289
Mortgage referral fees 173 198 110 97 160 Goodwill 43,086 43,889 18,253 18,253 4,485
Gain on sales of loans, net 1,151 1,384 804 1,236 1,369 Core deposit intangible 11,628 12,583 7,954 8,558 2,959
Gain on sales of investment securities - 1,053 1,081 - - SBA servicing asset 3,548 3,570 3,747 3,965 3,561
Other noninterest income 257 131 69 23 47 Deferred tax asset, net - 48 - 328 1,667
Total noninterest income 2,681 3,775 3,057 3,031 2,567 Bank-owned life insurance 15,521 15,432 7,442 7,401 483
Noninterest expense: Federal Home Loan Bank and other bank stock, at cost 6,233 6,190 5,264 5,304 4,861
Salaries and employee benefits 9,502 8,765 7,124 7,988 6,623 Other assets 4,005 4,485 4,464 4,276 2,806
Occupancy and equipment expenses 1,710 1,690 1,262 1,479 1,279 Total assets $ 1,959,784 $ 1,907,333 $ 1,487,044 $     1,476,621 $      1,108,805
Professional services 791 1,022 1,041 1,806 624 Liabilities and Stockholders' Equity
Data processing and network 884 731 485 340 302 Liabilities:
Regulatory assessments and insurance (256) 315 98 307 266 Deposits:
Amortization of intangibles 1,015 1,006 603 390 176 Transaction accounts:
Advertising 134 167 97 81 83 Noninterest-bearing $    366,209 $    367,892 $    258,440 $        256,784 $         207,727
Marketing 136 132 139 154 115 Interest-bearing 593,064 569,839 363,326 378,822 222,245
Telephone expense 289 338 140 82 120 Total transaction accounts 959,273 937,731 621,766 635,606 429,972
Conversion expense 314 453 1,151 160 - Time deposits 625,940 632,873 581,486 547,042 442,638
Other operating expenses 1,037 1,206 864 789 693 Total deposits 1,585,213 1,570,604 1,203,252 1,182,648 872,610
Total noninterest expense 15,556 15,825 13,004 13,576 10,281 Accrued interest payable 1,002 1,134 737 702 475
Income before income tax expense 6,704 7,369 4,639 2,617 3,490 Short-term borrowings - - - 12,500 10,000
Income tax expense 1,374 1,542 829 104 719 Long-term borrowings 74,165 89,398 75,536 77,784 71,555
Net income $                      5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Deferred tax liability, net 215 - 449 - -
Other liabilities 2,451 2,087 3,094 4,191 3,272
Earnings per common share: Total liabilities 1,663,046 1,663,223 1,283,068 1,277,825 957,912
Basic $                        0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Stockholders' Equity:
Diluted $                        0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Common stock 251,875 204,974 171,159 169,939 127,541
Retained earnings 41,970 36,640 30,813 27,003 24,490
Weighted average common shares outstanding:  Accumulated other comprehensive income (loss) 3,091 2,496 2,004 1,854 (1,138)
Basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Treasury stock (198) - - - -
Diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 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

 

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets Loan Composition
(713) 529-6600 (Unaudited) (Unaudited) (Unaudited)
STXB@dennardlascar.com
As of
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018 As of
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
(Dollars in thousands, except per share data) Assets: (Dollars in thousands)
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212 Loans:
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926 Commercial and industrial loans (1) $         248,745 $    197,774 $    162,934 $        173,892 $         159,776
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138 Real estate:
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245 1-4 single family residential loans 321,044 281,514 284,780 279,665 248,788
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities: Construction, land and development loans 233,830 176,567 169,919 159,734 155,778
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449 Commercial real estate loans (including multifamily) 597,415 671,900 423,900 403,800 326,651
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449 Consumer loans and leases 17,663 20,745 21,631 24,378 18,174
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500 Municipal and other loans 68,905 69,711 62,691 61,339 51,501
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans: Total loans held in portfolio $      1,487,602 $ 1,418,211 $  1,125,855 $     1,102,808 $         960,668
Net interest income 20,479 19,751 15,435 13,862 11,690 Loans held for investment 1,487,602 1,418,211 1,125,855 1,102,808 960,668
Provision for loan losses 900 332 849 700 486 Less: allowance for loan and lease losses (6,565) (6,277) (6,569) (6,286) (6,156)
Net interest income after provision for loan losses 19,579 19,419 14,586 13,162 11,204 Loans, net 1,481,037 1,411,934 1,119,286 1,096,522 954,512
Noninterest income: Premises and equipment, net 65,144 62,815 55,237 53,877 46,135
Service charges and fees 866 969 729 649 462 Accrued interest receivable 6,319 7,039 4,849 4,934 3,715
SBA loan servicing fees 234 40 264 1,026 529 Other real estate owned and repossessed assets 1,042 1,324 518 782 289
Mortgage referral fees 173 198 110 97 160 Goodwill 43,086 43,889 18,253 18,253 4,485
Gain on sales of loans, net 1,151 1,384 804 1,236 1,369 Core deposit intangible 11,628 12,583 7,954 8,558 2,959
Gain on sales of investment securities - 1,053 1,081 - - SBA servicing asset 3,548 3,570 3,747 3,965 3,561
Other noninterest income 257 131 69 23 47 Deferred tax asset, net - 48 - 328 1,667
Total noninterest income 2,681 3,775 3,057 3,031 2,567 Bank-owned life insurance 15,521 15,432 7,442 7,401 483
Noninterest expense: Federal Home Loan Bank and other bank stock, at cost 6,233 6,190 5,264 5,304 4,861
Salaries and employee benefits 9,502 8,765 7,124 7,988 6,623 Other assets 4,005 4,485 4,464 4,276 2,806
Occupancy and equipment expenses 1,710 1,690 1,262 1,479 1,279 Total assets $ 1,959,784 $ 1,907,333 $ 1,487,044 $     1,476,621 $      1,108,805
Professional services 791 1,022 1,041 1,806 624 Liabilities and Stockholders' Equity
Data processing and network 884 731 485 340 302 Liabilities:
Regulatory assessments and insurance (256) 315 98 307 266 Deposits:
Amortization of intangibles 1,015 1,006 603 390 176 Transaction accounts:
Advertising 134 167 97 81 83 Noninterest-bearing $    366,209 $    367,892 $    258,440 $        256,784 $         207,727
Marketing 136 132 139 154 115 Interest-bearing 593,064 569,839 363,326 378,822 222,245
Telephone expense 289 338 140 82 120 Total transaction accounts 959,273 937,731 621,766 635,606 429,972
Conversion expense 314 453 1,151 160 - Time deposits 625,940 632,873 581,486 547,042 442,638
Other operating expenses 1,037 1,206 864 789 693 Total deposits 1,585,213 1,570,604 1,203,252 1,182,648 872,610
Total noninterest expense 15,556 15,825 13,004 13,576 10,281 Accrued interest payable 1,002 1,134 737 702 475
Income before income tax expense 6,704 7,369 4,639 2,617 3,490 Short-term borrowings - - - 12,500 10,000
Income tax expense 1,374 1,542 829 104 719 Long-term borrowings 74,165 89,398 75,536 77,784 71,555
Net income $                      5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Deferred tax liability, net 215 - 449 - -
Other liabilities 2,451 2,087 3,094 4,191 3,272
Earnings per common share: Total liabilities 1,663,046 1,663,223 1,283,068 1,277,825 957,912
Basic $                        0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Stockholders' Equity:
Diluted $                        0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Common stock 251,875 204,974 171,159 169,939 127,541
Retained earnings 41,970 36,640 30,813 27,003 24,490
Weighted average common shares outstanding:  Accumulated other comprehensive income (loss) 3,091 2,496 2,004 1,854 (1,138)
Basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Treasury stock (198) - - - -
Diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 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

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets Loan Composition (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.
(713) 529-6600 (Unaudited) (Unaudited) (Unaudited)
STXB@dennardlascar.com
As of
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018 As of
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
(Dollars in thousands, except per share data) Assets: (Dollars in thousands)
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212 Loans:
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926 Commercial and industrial loans (1) $         248,745 $    197,774 $    162,934 $        173,892 $         159,776
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138 Real estate:
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245 1-4 single family residential loans 321,044 281,514 284,780 279,665 248,788
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities: Construction, land and development loans 233,830 176,567 169,919 159,734 155,778
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449 Commercial real estate loans (including multifamily) 597,415 671,900 423,900 403,800 326,651
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449 Consumer loans and leases 17,663 20,745 21,631 24,378 18,174
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500 Municipal and other loans 68,905 69,711 62,691 61,339 51,501
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans: Total loans held in portfolio $      1,487,602 $ 1,418,211 $  1,125,855 $     1,102,808 $         960,668
Net interest income 20,479 19,751 15,435 13,862 11,690 Loans held for investment 1,487,602 1,418,211 1,125,855 1,102,808 960,668
Provision for loan losses 900 332 849 700 486 Less: allowance for loan and lease losses (6,565) (6,277) (6,569) (6,286) (6,156)
Net interest income after provision for loan losses 19,579 19,419 14,586 13,162 11,204 Loans, net 1,481,037 1,411,934 1,119,286 1,096,522 954,512
Noninterest income: Premises and equipment, net 65,144 62,815 55,237 53,877 46,135
Service charges and fees 866 969 729 649 462 Accrued interest receivable 6,319 7,039 4,849 4,934 3,715
SBA loan servicing fees 234 40 264 1,026 529 Other real estate owned and repossessed assets 1,042 1,324 518 782 289
Mortgage referral fees 173 198 110 97 160 Goodwill 43,086 43,889 18,253 18,253 4,485
Gain on sales of loans, net 1,151 1,384 804 1,236 1,369 Core deposit intangible 11,628 12,583 7,954 8,558 2,959
Gain on sales of investment securities - 1,053 1,081 - - SBA servicing asset 3,548 3,570 3,747 3,965 3,561
Other noninterest income 257 131 69 23 47 Deferred tax asset, net - 48 - 328 1,667
Total noninterest income 2,681 3,775 3,057 3,031 2,567 Bank-owned life insurance 15,521 15,432 7,442 7,401 483
Noninterest expense: Federal Home Loan Bank and other bank stock, at cost 6,233 6,190 5,264 5,304 4,861
Salaries and employee benefits 9,502 8,765 7,124 7,988 6,623 Other assets 4,005 4,485 4,464 4,276 2,806
Occupancy and equipment expenses 1,710 1,690 1,262 1,479 1,279 Total assets $ 1,959,784 $ 1,907,333 $ 1,487,044 $     1,476,621 $      1,108,805
Professional services 791 1,022 1,041 1,806 624 Liabilities and Stockholders' Equity
Data processing and network 884 731 485 340 302 Liabilities:
Regulatory assessments and insurance (256) 315 98 307 266 Deposits:
Amortization of intangibles 1,015 1,006 603 390 176 Transaction accounts:
Advertising 134 167 97 81 83 Noninterest-bearing $    366,209 $    367,892 $    258,440 $        256,784 $         207,727
Marketing 136 132 139 154 115 Interest-bearing 593,064 569,839 363,326 378,822 222,245
Telephone expense 289 338 140 82 120 Total transaction accounts 959,273 937,731 621,766 635,606 429,972
Conversion expense 314 453 1,151 160 - Time deposits 625,940 632,873 581,486 547,042 442,638
Other operating expenses 1,037 1,206 864 789 693 Total deposits 1,585,213 1,570,604 1,203,252 1,182,648 872,610
Total noninterest expense 15,556 15,825 13,004 13,576 10,281 Accrued interest payable 1,002 1,134 737 702 475
Income before income tax expense 6,704 7,369 4,639 2,617 3,490 Short-term borrowings - - - 12,500 10,000
Income tax expense 1,374 1,542 829 104 719 Long-term borrowings 74,165 89,398 75,536 77,784 71,555
Net income $                      5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Deferred tax liability, net 215 - 449 - -
Other liabilities 2,451 2,087 3,094 4,191 3,272
Earnings per common share: Total liabilities 1,663,046 1,663,223 1,283,068 1,277,825 957,912
Basic $                        0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Stockholders' Equity:
Diluted $                        0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Common stock 251,875 204,974 171,159 169,939 127,541
Retained earnings 41,970 36,640 30,813 27,003 24,490
Weighted average common shares outstanding:  Accumulated other comprehensive income (loss) 3,091 2,496 2,004 1,854 (1,138)
Basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Treasury stock (198) - - - -
Diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 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

 

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets Loan Composition (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. Deposit Composition
(713) 529-6600 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
STXB@dennardlascar.com
As of
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018 As of As of
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
(Dollars in thousands, except per share data) Assets: (Dollars in thousands) (Dollars in thousands)
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212 Loans: Deposits:
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926 Commercial and industrial loans (1) $         248,745 $    197,774 $    162,934 $        173,892 $         159,776 Noninterest-bearing demand deposits $         366,209 $    367,892 $    258,440 $        256,784 $         207,727
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138 Real estate: Interest-bearing demand deposits 303,037 292,550 127,182 124,933 -
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245 1-4 single family residential loans 321,044 281,514 284,780 279,665 248,788 Interest-bearing NOW accounts 8,626 7,638 7,509 7,961 7,865
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities: Construction, land and development loans 233,830 176,567 169,919 159,734 155,778 Savings and money market accounts 281,401 269,651 228,635 245,928 214,380
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449 Commercial real estate loans (including multifamily) 597,415 671,900 423,900 403,800 326,651 Time deposits 625,940 632,873 581,486 547,042 442,638
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449 Consumer loans and leases 17,663 20,745 21,631 24,378 18,174 Total deposits $      1,585,213 $ 1,570,604 $ 1,203,252 $     1,182,648 $         872,610
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500 Municipal and other loans 68,905 69,711 62,691 61,339 51,501
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans: Total loans held in portfolio $      1,487,602 $ 1,418,211 $  1,125,855 $     1,102,808 $         960,668
Net interest income 20,479 19,751 15,435 13,862 11,690 Loans held for investment 1,487,602 1,418,211 1,125,855 1,102,808 960,668
Provision for loan losses 900 332 849 700 486 Less: allowance for loan and lease losses (6,565) (6,277) (6,569) (6,286) (6,156)
Net interest income after provision for loan losses 19,579 19,419 14,586 13,162 11,204 Loans, net 1,481,037 1,411,934 1,119,286 1,096,522 954,512
Noninterest income: Premises and equipment, net 65,144 62,815 55,237 53,877 46,135
Service charges and fees 866 969 729 649 462 Accrued interest receivable 6,319 7,039 4,849 4,934 3,715
SBA loan servicing fees 234 40 264 1,026 529 Other real estate owned and repossessed assets 1,042 1,324 518 782 289
Mortgage referral fees 173 198 110 97 160 Goodwill 43,086 43,889 18,253 18,253 4,485
Gain on sales of loans, net 1,151 1,384 804 1,236 1,369 Core deposit intangible 11,628 12,583 7,954 8,558 2,959
Gain on sales of investment securities - 1,053 1,081 - - SBA servicing asset 3,548 3,570 3,747 3,965 3,561
Other noninterest income 257 131 69 23 47 Deferred tax asset, net - 48 - 328 1,667
Total noninterest income 2,681 3,775 3,057 3,031 2,567 Bank-owned life insurance 15,521 15,432 7,442 7,401 483
Noninterest expense: Federal Home Loan Bank and other bank stock, at cost 6,233 6,190 5,264 5,304 4,861
Salaries and employee benefits 9,502 8,765 7,124 7,988 6,623 Other assets 4,005 4,485 4,464 4,276 2,806
Occupancy and equipment expenses 1,710 1,690 1,262 1,479 1,279 Total assets $ 1,959,784 $ 1,907,333 $ 1,487,044 $     1,476,621 $      1,108,805
Professional services 791 1,022 1,041 1,806 624 Liabilities and Stockholders' Equity
Data processing and network 884 731 485 340 302 Liabilities:
Regulatory assessments and insurance (256) 315 98 307 266 Deposits:
Amortization of intangibles 1,015 1,006 603 390 176 Transaction accounts:
Advertising 134 167 97 81 83 Noninterest-bearing $    366,209 $    367,892 $    258,440 $        256,784 $         207,727
Marketing 136 132 139 154 115 Interest-bearing 593,064 569,839 363,326 378,822 222,245
Telephone expense 289 338 140 82 120 Total transaction accounts 959,273 937,731 621,766 635,606 429,972
Conversion expense 314 453 1,151 160 - Time deposits 625,940 632,873 581,486 547,042 442,638
Other operating expenses 1,037 1,206 864 789 693 Total deposits 1,585,213 1,570,604 1,203,252 1,182,648 872,610
Total noninterest expense 15,556 15,825 13,004 13,576 10,281 Accrued interest payable 1,002 1,134 737 702 475
Income before income tax expense 6,704 7,369 4,639 2,617 3,490 Short-term borrowings - - - 12,500 10,000
Income tax expense 1,374 1,542 829 104 719 Long-term borrowings 74,165 89,398 75,536 77,784 71,555
Net income $                      5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Deferred tax liability, net 215 - 449 - -
Other liabilities 2,451 2,087 3,094 4,191 3,272
Earnings per common share: Total liabilities 1,663,046 1,663,223 1,283,068 1,277,825 957,912
Basic $                        0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Stockholders' Equity:
Diluted $                        0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Common stock 251,875 204,974 171,159 169,939 127,541
Retained earnings 41,970 36,640 30,813 27,003 24,490
Weighted average common shares outstanding:  Accumulated other comprehensive income (loss) 3,091 2,496 2,004 1,854 (1,138)
Basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Treasury stock (198) - - - -
Diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 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

 

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets Loan Composition (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. Deposit Composition Average Balances and Yields
(713) 529-6600 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
STXB@dennardlascar.com
As of Three Months Ended September 30,
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018 As of As of 2019 2018
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate
(Dollars in thousands, except per share data) Assets: (Dollars in thousands) (Dollars in thousands) (Dollars in thousands)
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212 Loans: Deposits: Interest-earning assets:
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926 Commercial and industrial loans (1) $         248,745 $    197,774 $    162,934 $        173,892 $         159,776 Noninterest-bearing demand deposits $         366,209 $    367,892 $    258,440 $        256,784 $         207,727 Interest-earning deposits in other banks $    135,460 $      750 2.20% $      24,007 $      140 2.32%
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138 Real estate: Interest-bearing demand deposits 303,037 292,550 127,182 124,933 - Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 944,429 13,901 5.84%
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245 1-4 single family residential loans 321,044 281,514 284,780 279,665 248,788 Interest-bearing NOW accounts 8,626 7,638 7,509 7,961 7,865 Investment securities and other 175,369 1,187 2.69% 39,056 235 2.38%
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities: Construction, land and development loans 233,830 176,567 169,919 159,734 155,778 Savings and money market accounts 281,401 269,651 228,635 245,928 214,380 Total interest-earning assets 1,769,432 25,001 5.61% 1,007,492 14,276 5.62%
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449 Commercial real estate loans (including multifamily) 597,415 671,900 423,900 403,800 326,651 Time deposits 625,940 632,873 581,486 547,042 442,638 Noninterest-earning assets 150,139 77,988
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449 Consumer loans and leases 17,663 20,745 21,631 24,378 18,174 Total deposits $      1,585,213 $ 1,570,604 $ 1,203,252 $     1,182,648 $         872,610 Total assets $ 1,919,571 $ 1,085,480
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500 Municipal and other loans 68,905 69,711 62,691 61,339 51,501 Interest-bearing liabilities:
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans: Total loans held in portfolio $      1,487,602 $ 1,418,211 $  1,125,855 $     1,102,808 $         960,668 Interest-bearing demand deposits $    285,306 $      349 0.49% $                - $           - 0.00%
Net interest income 20,479 19,751 15,435 13,862 11,690 Loans held for investment 1,487,602 1,418,211 1,125,855 1,102,808 960,668 Interest-bearing NOW accounts 7,846 3 0.15% 7,932 3 0.15%
Provision for loan losses 900 332 849 700 486 Less: allowance for loan and lease losses (6,565) (6,277) (6,569) (6,286) (6,156) Savings and money market accounts 273,662 579 0.84% 212,511 338 0.63%
Net interest income after provision for loan losses 19,579 19,419 14,586 13,162 11,204 Loans, net 1,481,037 1,411,934 1,119,286 1,096,522 954,512 Time deposits 630,969 3,166 1.99% 442,149 1,856 1.67%
Noninterest income: Premises and equipment, net 65,144 62,815 55,237 53,877 46,135 FHLB advances and other borrowings 65,358 425 2.58% 77,471 389 1.99%
Service charges and fees 866 969 729 649 462 Accrued interest receivable 6,319 7,039 4,849 4,934 3,715 Total interest-bearing liabilities 1,263,141 4,522 1.42% 740,063 2,586 1.39%
SBA loan servicing fees 234 40 264 1,026 529 Other real estate owned and repossessed assets 1,042 1,324 518 782 289 Noninterest-bearing liabilities andshareholders' equity:
Mortgage referral fees 173 198 110 97 160 Goodwill 43,086 43,889 18,253 18,253 4,485 Noninterest-bearing demand deposits 380,997 192,408
Gain on sales of loans, net 1,151 1,384 804 1,236 1,369 Core deposit intangible 11,628 12,583 7,954 8,558 2,959 Other liabilities 4,232 3,182
Gain on sales of investment securities - 1,053 1,081 - - SBA servicing asset 3,548 3,570 3,747 3,965 3,561 Stockholders' equity 271,201 149,827
Other noninterest income 257 131 69 23 47 Deferred tax asset, net - 48 - 328 1,667 Total liabilities and stockholders' equity $ 1,919,571 $ 1,085,480
Total noninterest income 2,681 3,775 3,057 3,031 2,567 Bank-owned life insurance 15,521 15,432 7,442 7,401 483 Net interest rate spread 4.19% 4.23%
Noninterest expense: Federal Home Loan Bank and other bank stock, at cost 6,233 6,190 5,264 5,304 4,861 Net interest income and margin $ 20,479 4.59% $ 11,690 4.60%
Salaries and employee benefits 9,502 8,765 7,124 7,988 6,623 Other assets 4,005 4,485 4,464 4,276 2,806 Net interest income and margin (tax equivalent)(3) $ 20,632 4.63% $ 11,803 4.65%
Occupancy and equipment expenses 1,710 1,690 1,262 1,479 1,279 Total assets $ 1,959,784 $ 1,907,333 $ 1,487,044 $     1,476,621 $      1,108,805
Professional services 791 1,022 1,041 1,806 624 Liabilities and Stockholders' Equity
Data processing and network 884 731 485 340 302 Liabilities:
Regulatory assessments and insurance (256) 315 98 307 266 Deposits:
Amortization of intangibles 1,015 1,006 603 390 176 Transaction accounts:
Advertising 134 167 97 81 83 Noninterest-bearing $    366,209 $    367,892 $    258,440 $        256,784 $         207,727
Marketing 136 132 139 154 115 Interest-bearing 593,064 569,839 363,326 378,822 222,245
Telephone expense 289 338 140 82 120 Total transaction accounts 959,273 937,731 621,766 635,606 429,972
Conversion expense 314 453 1,151 160 - Time deposits 625,940 632,873 581,486 547,042 442,638
Other operating expenses 1,037 1,206 864 789 693 Total deposits 1,585,213 1,570,604 1,203,252 1,182,648 872,610
Total noninterest expense 15,556 15,825 13,004 13,576 10,281 Accrued interest payable 1,002 1,134 737 702 475
Income before income tax expense 6,704 7,369 4,639 2,617 3,490 Short-term borrowings - - - 12,500 10,000
Income tax expense 1,374 1,542 829 104 719 Long-term borrowings 74,165 89,398 75,536 77,784 71,555
Net income $                      5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Deferred tax liability, net 215 - 449 - -
Other liabilities 2,451 2,087 3,094 4,191 3,272
Earnings per common share: Total liabilities 1,663,046 1,663,223 1,283,068 1,277,825 957,912
Basic $                        0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Stockholders' Equity:
Diluted $                        0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Common stock 251,875 204,974 171,159 169,939 127,541
Retained earnings 41,970 36,640 30,813 27,003 24,490
Weighted average common shares outstanding:  Accumulated other comprehensive income (loss) 3,091 2,496 2,004 1,854 (1,138)
Basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Treasury stock (198) - - - -
Diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 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

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets Loan Composition (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. Deposit Composition Average Balances and Yields (1) Average balances presented are derived from daily average balances.
(713) 529-6600 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (2) Includes loans on nonaccrual status.
STXB@dennardlascar.com (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.
As of Three Months Ended September 30,
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018 As of As of 2019 2018
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate
(Dollars in thousands, except per share data) Assets: (Dollars in thousands) (Dollars in thousands) (Dollars in thousands)
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212 Loans: Deposits: Interest-earning assets:
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926 Commercial and industrial loans (1) $         248,745 $    197,774 $    162,934 $        173,892 $         159,776 Noninterest-bearing demand deposits $         366,209 $    367,892 $    258,440 $        256,784 $         207,727 Interest-earning deposits in other banks $    135,460 $      750 2.20% $      24,007 $      140 2.32%
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138 Real estate: Interest-bearing demand deposits 303,037 292,550 127,182 124,933 - Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 944,429 13,901 5.84%
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245 1-4 single family residential loans 321,044 281,514 284,780 279,665 248,788 Interest-bearing NOW accounts 8,626 7,638 7,509 7,961 7,865 Investment securities and other 175,369 1,187 2.69% 39,056 235 2.38%
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities: Construction, land and development loans 233,830 176,567 169,919 159,734 155,778 Savings and money market accounts 281,401 269,651 228,635 245,928 214,380 Total interest-earning assets 1,769,432 25,001 5.61% 1,007,492 14,276 5.62%
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449 Commercial real estate loans (including multifamily) 597,415 671,900 423,900 403,800 326,651 Time deposits 625,940 632,873 581,486 547,042 442,638 Noninterest-earning assets 150,139 77,988
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449 Consumer loans and leases 17,663 20,745 21,631 24,378 18,174 Total deposits $      1,585,213 $ 1,570,604 $ 1,203,252 $     1,182,648 $         872,610 Total assets $ 1,919,571 $ 1,085,480
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500 Municipal and other loans 68,905 69,711 62,691 61,339 51,501 Interest-bearing liabilities:
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans: Total loans held in portfolio $      1,487,602 $ 1,418,211 $  1,125,855 $     1,102,808 $         960,668 Interest-bearing demand deposits $    285,306 $      349 0.49% $                - $           - 0.00%
Net interest income 20,479 19,751 15,435 13,862 11,690 Loans held for investment 1,487,602 1,418,211 1,125,855 1,102,808 960,668 Interest-bearing NOW accounts 7,846 3 0.15% 7,932 3 0.15%
Provision for loan losses 900 332 849 700 486 Less: allowance for loan and lease losses (6,565) (6,277) (6,569) (6,286) (6,156) Savings and money market accounts 273,662 579 0.84% 212,511 338 0.63%
Net interest income after provision for loan losses 19,579 19,419 14,586 13,162 11,204 Loans, net 1,481,037 1,411,934 1,119,286 1,096,522 954,512 Time deposits 630,969 3,166 1.99% 442,149 1,856 1.67%
Noninterest income: Premises and equipment, net 65,144 62,815 55,237 53,877 46,135 FHLB advances and other borrowings 65,358 425 2.58% 77,471 389 1.99%
Service charges and fees 866 969 729 649 462 Accrued interest receivable 6,319 7,039 4,849 4,934 3,715 Total interest-bearing liabilities 1,263,141 4,522 1.42% 740,063 2,586 1.39%
SBA loan servicing fees 234 40 264 1,026 529 Other real estate owned and repossessed assets 1,042 1,324 518 782 289 Noninterest-bearing liabilities andshareholders' equity:
Mortgage referral fees 173 198 110 97 160 Goodwill 43,086 43,889 18,253 18,253 4,485 Noninterest-bearing demand deposits 380,997 192,408
Gain on sales of loans, net 1,151 1,384 804 1,236 1,369 Core deposit intangible 11,628 12,583 7,954 8,558 2,959 Other liabilities 4,232 3,182
Gain on sales of investment securities - 1,053 1,081 - - SBA servicing asset 3,548 3,570 3,747 3,965 3,561 Stockholders' equity 271,201 149,827
Other noninterest income 257 131 69 23 47 Deferred tax asset, net - 48 - 328 1,667 Total liabilities and stockholders' equity $ 1,919,571 $ 1,085,480
Total noninterest income 2,681 3,775 3,057 3,031 2,567 Bank-owned life insurance 15,521 15,432 7,442 7,401 483 Net interest rate spread 4.19% 4.23%
Noninterest expense: Federal Home Loan Bank and other bank stock, at cost 6,233 6,190 5,264 5,304 4,861 Net interest income and margin $ 20,479 4.59% $ 11,690 4.60%
Salaries and employee benefits 9,502 8,765 7,124 7,988 6,623 Other assets 4,005 4,485 4,464 4,276 2,806 Net interest income and margin (tax equivalent)(3) $ 20,632 4.63% $ 11,803 4.65%
Occupancy and equipment expenses 1,710 1,690 1,262 1,479 1,279 Total assets $ 1,959,784 $ 1,907,333 $ 1,487,044 $     1,476,621 $      1,108,805
Professional services 791 1,022 1,041 1,806 624 Liabilities and Stockholders' Equity
Data processing and network 884 731 485 340 302 Liabilities:
Regulatory assessments and insurance (256) 315 98 307 266 Deposits:
Amortization of intangibles 1,015 1,006 603 390 176 Transaction accounts:
Advertising 134 167 97 81 83 Noninterest-bearing $    366,209 $    367,892 $    258,440 $        256,784 $         207,727
Marketing 136 132 139 154 115 Interest-bearing 593,064 569,839 363,326 378,822 222,245
Telephone expense 289 338 140 82 120 Total transaction accounts 959,273 937,731 621,766 635,606 429,972
Conversion expense 314 453 1,151 160 - Time deposits 625,940 632,873 581,486 547,042 442,638
Other operating expenses 1,037 1,206 864 789 693 Total deposits 1,585,213 1,570,604 1,203,252 1,182,648 872,610
Total noninterest expense 15,556 15,825 13,004 13,576 10,281 Accrued interest payable 1,002 1,134 737 702 475
Income before income tax expense 6,704 7,369 4,639 2,617 3,490 Short-term borrowings - - - 12,500 10,000
Income tax expense 1,374 1,542 829 104 719 Long-term borrowings 74,165 89,398 75,536 77,784 71,555
Net income $                      5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Deferred tax liability, net 215 - 449 - -
Other liabilities 2,451 2,087 3,094 4,191 3,272
Earnings per common share: Total liabilities 1,663,046 1,663,223 1,283,068 1,277,825 957,912
Basic $                        0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Stockholders' Equity:
Diluted $                        0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Common stock 251,875 204,974 171,159 169,939 127,541
Retained earnings 41,970 36,640 30,813 27,003 24,490
Weighted average common shares outstanding:  Accumulated other comprehensive income (loss) 3,091 2,496 2,004 1,854 (1,138)
Basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Treasury stock (198) - - - -
Diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 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

 

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets Loan Composition (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. Deposit Composition Average Balances and Yields (1) Average balances presented are derived from daily average balances. Average Balances and Yields
(713) 529-6600 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (2) Includes loans on nonaccrual status. (Unaudited)
STXB@dennardlascar.com (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.
As of Three Months Ended September 30, Three Months Ended
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018 As of As of 2019 2018 September 30, 2019 June 30, 2019
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate
(Dollars in thousands, except per share data) Assets: (Dollars in thousands) (Dollars in thousands) (Dollars in thousands) (Dollars in thousands)
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212 Loans: Deposits: Interest-earning assets: Interest-earning assets:
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926 Commercial and industrial loans (1) $         248,745 $    197,774 $    162,934 $        173,892 $         159,776 Noninterest-bearing demand deposits $         366,209 $    367,892 $    258,440 $        256,784 $         207,727 Interest-earning deposits in other banks $    135,460 $      750 2.20% $      24,007 $      140 2.32% Interest-earning deposits in other banks $    135,460 $      750 2.20% $    120,568 $      742 2.47%
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138 Real estate: Interest-bearing demand deposits 303,037 292,550 127,182 124,933 - Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 944,429 13,901 5.84% Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 1,419,004 22,204 6.28%
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245 1-4 single family residential loans 321,044 281,514 284,780 279,665 248,788 Interest-bearing NOW accounts 8,626 7,638 7,509 7,961 7,865 Investment securities and other 175,369 1,187 2.69% 39,056 235 2.38% Investment securities and other 175,369 1,187 2.69% 177,227 1,354 3.06%
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities: Construction, land and development loans 233,830 176,567 169,919 159,734 155,778 Savings and money market accounts 281,401 269,651 228,635 245,928 214,380 Total interest-earning assets 1,769,432 25,001 5.61% 1,007,492 14,276 5.62% Total interest-earning assets 1,769,432 25,001 5.61% 1,716,799 24,300 5.68%
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449 Commercial real estate loans (including multifamily) 597,415 671,900 423,900 403,800 326,651 Time deposits 625,940 632,873 581,486 547,042 442,638 Noninterest-earning assets 150,139 77,988 Noninterest-earning assets 150,139 143,434
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449 Consumer loans and leases 17,663 20,745 21,631 24,378 18,174 Total deposits $      1,585,213 $ 1,570,604 $ 1,203,252 $     1,182,648 $         872,610 Total assets $ 1,919,571 $ 1,085,480 Total assets $ 1,919,571 $ 1,860,233
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500 Municipal and other loans 68,905 69,711 62,691 61,339 51,501 Interest-bearing liabilities: Interest-bearing liabilities:
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans: Total loans held in portfolio $      1,487,602 $ 1,418,211 $  1,125,855 $     1,102,808 $         960,668 Interest-bearing demand deposits $    285,306 $      349 0.49% $                - $           - 0.00% Interest-bearing demand deposits $    285,306 $      349 0.49% $    295,274 $      394 0.54%
Net interest income 20,479 19,751 15,435 13,862 11,690 Loans held for investment 1,487,602 1,418,211 1,125,855 1,102,808 960,668 Interest-bearing NOW accounts 7,846 3 0.15% 7,932 3 0.15% Interest-bearing NOW accounts 7,846 3 0.15% 7,619 3 0.16%
Provision for loan losses 900 332 849 700 486 Less: allowance for loan and lease losses (6,565) (6,277) (6,569) (6,286) (6,156) Savings and money market accounts 273,662 579 0.84% 212,511 338 0.63% Savings and money market accounts 273,662 579 0.84% 267,357 588 0.88%
Net interest income after provision for loan losses 19,579 19,419 14,586 13,162 11,204 Loans, net 1,481,037 1,411,934 1,119,286 1,096,522 954,512 Time deposits 630,969 3,166 1.99% 442,149 1,856 1.67% Time deposits 630,969 3,166 1.99% 634,700 2,953 1.87%
Noninterest income: Premises and equipment, net 65,144 62,815 55,237 53,877 46,135 FHLB advances and other borrowings 65,358 425 2.58% 77,471 389 1.99% FHLB advances and other borrowings 65,358 425 2.58% 75,856 611 3.23%
Service charges and fees 866 969 729 649 462 Accrued interest receivable 6,319 7,039 4,849 4,934 3,715 Total interest-bearing liabilities 1,263,141 4,522 1.42% 740,063 2,586 1.39% Total interest-bearing liabilities 1,263,141 4,522 1.42% 1,280,806 4,549 1.42%
SBA loan servicing fees 234 40 264 1,026 529 Other real estate owned and repossessed assets 1,042 1,324 518 782 289 Noninterest-bearing liabilities andshareholders' equity: Noninterest-bearing liabilities andshareholders' equity:
Mortgage referral fees 173 198 110 97 160 Goodwill 43,086 43,889 18,253 18,253 4,485 Noninterest-bearing demand deposits 380,997 192,408 Noninterest-bearing demand deposits 380,997 359,559
Gain on sales of loans, net 1,151 1,384 804 1,236 1,369 Core deposit intangible 11,628 12,583 7,954 8,558 2,959 Other liabilities 4,232 3,182 Other liabilities 4,232 3,228
Gain on sales of investment securities - 1,053 1,081 - - SBA servicing asset 3,548 3,570 3,747 3,965 3,561 Stockholders' equity 271,201 149,827 Stockholders' equity 271,201 216,640
Other noninterest income 257 131 69 23 47 Deferred tax asset, net - 48 - 328 1,667 Total liabilities and stockholders' equity $ 1,919,571 $ 1,085,480 Total liabilities and stockholders' equity $ 1,919,571 $ 1,860,233
Total noninterest income 2,681 3,775 3,057 3,031 2,567 Bank-owned life insurance 15,521 15,432 7,442 7,401 483 Net interest rate spread 4.19% 4.23% Net interest rate spread 4.19% 4.26%
Noninterest expense: Federal Home Loan Bank and other bank stock, at cost 6,233 6,190 5,264 5,304 4,861 Net interest income and margin $ 20,479 4.59% $ 11,690 4.60% Net interest income and margin $ 20,479 4.59% $ 19,751 4.61%
Salaries and employee benefits 9,502 8,765 7,124 7,988 6,623 Other assets 4,005 4,485 4,464 4,276 2,806 Net interest income and margin (tax equivalent)(3) $ 20,632 4.63% $ 11,803 4.65% Net interest income and margin (tax equivalent)(3) $ 20,632 4.63% $ 19,863 4.64%
Occupancy and equipment expenses 1,710 1,690 1,262 1,479 1,279 Total assets $ 1,959,784 $ 1,907,333 $ 1,487,044 $     1,476,621 $      1,108,805
Professional services 791 1,022 1,041 1,806 624 Liabilities and Stockholders' Equity
Data processing and network 884 731 485 340 302 Liabilities:
Regulatory assessments and insurance (256) 315 98 307 266 Deposits:
Amortization of intangibles 1,015 1,006 603 390 176 Transaction accounts:
Advertising 134 167 97 81 83 Noninterest-bearing $    366,209 $    367,892 $    258,440 $        256,784 $         207,727
Marketing 136 132 139 154 115 Interest-bearing 593,064 569,839 363,326 378,822 222,245
Telephone expense 289 338 140 82 120 Total transaction accounts 959,273 937,731 621,766 635,606 429,972
Conversion expense 314 453 1,151 160 - Time deposits 625,940 632,873 581,486 547,042 442,638
Other operating expenses 1,037 1,206 864 789 693 Total deposits 1,585,213 1,570,604 1,203,252 1,182,648 872,610
Total noninterest expense 15,556 15,825 13,004 13,576 10,281 Accrued interest payable 1,002 1,134 737 702 475
Income before income tax expense 6,704 7,369 4,639 2,617 3,490 Short-term borrowings - - - 12,500 10,000
Income tax expense 1,374 1,542 829 104 719 Long-term borrowings 74,165 89,398 75,536 77,784 71,555
Net income $                      5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Deferred tax liability, net 215 - 449 - -
Other liabilities 2,451 2,087 3,094 4,191 3,272
Earnings per common share: Total liabilities 1,663,046 1,663,223 1,283,068 1,277,825 957,912
Basic $                        0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Stockholders' Equity:
Diluted $                        0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Common stock 251,875 204,974 171,159 169,939 127,541
Retained earnings 41,970 36,640 30,813 27,003 24,490
Weighted average common shares outstanding:  Accumulated other comprehensive income (loss) 3,091 2,496 2,004 1,854 (1,138)
Basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Treasury stock (198) - - - -
Diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 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

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets Loan Composition (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. Deposit Composition Average Balances and Yields (1) Average balances presented are derived from daily average balances. Average Balances and Yields (1) Average balances presented are derived from daily average balances.
(713) 529-6600 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (2) Includes loans on nonaccrual status. (Unaudited) (2) Includes loans on nonaccrual status.
STXB@dennardlascar.com (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. (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.
As of Three Months Ended September 30, Three Months Ended
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018 As of As of 2019 2018 September 30, 2019 June 30, 2019
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate
(Dollars in thousands, except per share data) Assets: (Dollars in thousands) (Dollars in thousands) (Dollars in thousands) (Dollars in thousands)
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212 Loans: Deposits: Interest-earning assets: Interest-earning assets:
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926 Commercial and industrial loans (1) $         248,745 $    197,774 $    162,934 $        173,892 $         159,776 Noninterest-bearing demand deposits $         366,209 $    367,892 $    258,440 $        256,784 $         207,727 Interest-earning deposits in other banks $    135,460 $      750 2.20% $      24,007 $      140 2.32% Interest-earning deposits in other banks $    135,460 $      750 2.20% $    120,568 $      742 2.47%
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138 Real estate: Interest-bearing demand deposits 303,037 292,550 127,182 124,933 - Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 944,429 13,901 5.84% Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 1,419,004 22,204 6.28%
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245 1-4 single family residential loans 321,044 281,514 284,780 279,665 248,788 Interest-bearing NOW accounts 8,626 7,638 7,509 7,961 7,865 Investment securities and other 175,369 1,187 2.69% 39,056 235 2.38% Investment securities and other 175,369 1,187 2.69% 177,227 1,354 3.06%
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities: Construction, land and development loans 233,830 176,567 169,919 159,734 155,778 Savings and money market accounts 281,401 269,651 228,635 245,928 214,380 Total interest-earning assets 1,769,432 25,001 5.61% 1,007,492 14,276 5.62% Total interest-earning assets 1,769,432 25,001 5.61% 1,716,799 24,300 5.68%
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449 Commercial real estate loans (including multifamily) 597,415 671,900 423,900 403,800 326,651 Time deposits 625,940 632,873 581,486 547,042 442,638 Noninterest-earning assets 150,139 77,988 Noninterest-earning assets 150,139 143,434
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449 Consumer loans and leases 17,663 20,745 21,631 24,378 18,174 Total deposits $      1,585,213 $ 1,570,604 $ 1,203,252 $     1,182,648 $         872,610 Total assets $ 1,919,571 $ 1,085,480 Total assets $ 1,919,571 $ 1,860,233
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500 Municipal and other loans 68,905 69,711 62,691 61,339 51,501 Interest-bearing liabilities: Interest-bearing liabilities:
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans: Total loans held in portfolio $      1,487,602 $ 1,418,211 $  1,125,855 $     1,102,808 $         960,668 Interest-bearing demand deposits $    285,306 $      349 0.49% $                - $           - 0.00% Interest-bearing demand deposits $    285,306 $      349 0.49% $    295,274 $      394 0.54%
Net interest income 20,479 19,751 15,435 13,862 11,690 Loans held for investment 1,487,602 1,418,211 1,125,855 1,102,808 960,668 Interest-bearing NOW accounts 7,846 3 0.15% 7,932 3 0.15% Interest-bearing NOW accounts 7,846 3 0.15% 7,619 3 0.16%
Provision for loan losses 900 332 849 700 486 Less: allowance for loan and lease losses (6,565) (6,277) (6,569) (6,286) (6,156) Savings and money market accounts 273,662 579 0.84% 212,511 338 0.63% Savings and money market accounts 273,662 579 0.84% 267,357 588 0.88%
Net interest income after provision for loan losses 19,579 19,419 14,586 13,162 11,204 Loans, net 1,481,037 1,411,934 1,119,286 1,096,522 954,512 Time deposits 630,969 3,166 1.99% 442,149 1,856 1.67% Time deposits 630,969 3,166 1.99% 634,700 2,953 1.87%
Noninterest income: Premises and equipment, net 65,144 62,815 55,237 53,877 46,135 FHLB advances and other borrowings 65,358 425 2.58% 77,471 389 1.99% FHLB advances and other borrowings 65,358 425 2.58% 75,856 611 3.23%
Service charges and fees 866 969 729 649 462 Accrued interest receivable 6,319 7,039 4,849 4,934 3,715 Total interest-bearing liabilities 1,263,141 4,522 1.42% 740,063 2,586 1.39% Total interest-bearing liabilities 1,263,141 4,522 1.42% 1,280,806 4,549 1.42%
SBA loan servicing fees 234 40 264 1,026 529 Other real estate owned and repossessed assets 1,042 1,324 518 782 289 Noninterest-bearing liabilities andshareholders' equity: Noninterest-bearing liabilities andshareholders' equity:
Mortgage referral fees 173 198 110 97 160 Goodwill 43,086 43,889 18,253 18,253 4,485 Noninterest-bearing demand deposits 380,997 192,408 Noninterest-bearing demand deposits 380,997 359,559
Gain on sales of loans, net 1,151 1,384 804 1,236 1,369 Core deposit intangible 11,628 12,583 7,954 8,558 2,959 Other liabilities 4,232 3,182 Other liabilities 4,232 3,228
Gain on sales of investment securities - 1,053 1,081 - - SBA servicing asset 3,548 3,570 3,747 3,965 3,561 Stockholders' equity 271,201 149,827 Stockholders' equity 271,201 216,640
Other noninterest income 257 131 69 23 47 Deferred tax asset, net - 48 - 328 1,667 Total liabilities and stockholders' equity $ 1,919,571 $ 1,085,480 Total liabilities and stockholders' equity $ 1,919,571 $ 1,860,233
Total noninterest income 2,681 3,775 3,057 3,031 2,567 Bank-owned life insurance 15,521 15,432 7,442 7,401 483 Net interest rate spread 4.19% 4.23% Net interest rate spread 4.19% 4.26%
Noninterest expense: Federal Home Loan Bank and other bank stock, at cost 6,233 6,190 5,264 5,304 4,861 Net interest income and margin $ 20,479 4.59% $ 11,690 4.60% Net interest income and margin $ 20,479 4.59% $ 19,751 4.61%
Salaries and employee benefits 9,502 8,765 7,124 7,988 6,623 Other assets 4,005 4,485 4,464 4,276 2,806 Net interest income and margin (tax equivalent)(3) $ 20,632 4.63% $ 11,803 4.65% Net interest income and margin (tax equivalent)(3) $ 20,632 4.63% $ 19,863 4.64%
Occupancy and equipment expenses 1,710 1,690 1,262 1,479 1,279 Total assets $ 1,959,784 $ 1,907,333 $ 1,487,044 $     1,476,621 $      1,108,805
Professional services 791 1,022 1,041 1,806 624 Liabilities and Stockholders' Equity
Data processing and network 884 731 485 340 302 Liabilities:
Regulatory assessments and insurance (256) 315 98 307 266 Deposits:
Amortization of intangibles 1,015 1,006 603 390 176 Transaction accounts:
Advertising 134 167 97 81 83 Noninterest-bearing $    366,209 $    367,892 $    258,440 $        256,784 $         207,727
Marketing 136 132 139 154 115 Interest-bearing 593,064 569,839 363,326 378,822 222,245
Telephone expense 289 338 140 82 120 Total transaction accounts 959,273 937,731 621,766 635,606 429,972
Conversion expense 314 453 1,151 160 - Time deposits 625,940 632,873 581,486 547,042 442,638
Other operating expenses 1,037 1,206 864 789 693 Total deposits 1,585,213 1,570,604 1,203,252 1,182,648 872,610
Total noninterest expense 15,556 15,825 13,004 13,576 10,281 Accrued interest payable 1,002 1,134 737 702 475
Income before income tax expense 6,704 7,369 4,639 2,617 3,490 Short-term borrowings - - - 12,500 10,000
Income tax expense 1,374 1,542 829 104 719 Long-term borrowings 74,165 89,398 75,536 77,784 71,555
Net income $                      5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Deferred tax liability, net 215 - 449 - -
Other liabilities 2,451 2,087 3,094 4,191 3,272
Earnings per common share: Total liabilities 1,663,046 1,663,223 1,283,068 1,277,825 957,912
Basic $                        0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Stockholders' Equity:
Diluted $                        0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Common stock 251,875 204,974 171,159 169,939 127,541
Retained earnings 41,970 36,640 30,813 27,003 24,490
Weighted average common shares outstanding:  Accumulated other comprehensive income (loss) 3,091 2,496 2,004 1,854 (1,138)
Basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Treasury stock (198) - - - -
Diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 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

 

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets Loan Composition (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. Deposit Composition Average Balances and Yields (1) Average balances presented are derived from daily average balances. Average Balances and Yields (1) Average balances presented are derived from daily average balances. Reconciliation of Non-GAAP Financial Measures - Adjusted Net Income and Adjusted Basic and Diluted Earnings Per Share
(713) 529-6600 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (2) Includes loans on nonaccrual status. (Unaudited) (2) Includes loans on nonaccrual status. (Unaudited)
STXB@dennardlascar.com (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. (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.
As of Three Months Ended September 30, Three Months Ended As of or for the Three Months Ended
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018 As of As of 2019 2018 September 30, 2019 June 30, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate (Dollars in thousands, except per share data)
(Dollars in thousands, except per share data) Assets: (Dollars in thousands) (Dollars in thousands) (Dollars in thousands) (Dollars in thousands) Basic and diluted earnings per share - GAAP basis:
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212 Loans: Deposits: Interest-earning assets: Interest-earning assets: Net income available to common stockholders $                        5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926 Commercial and industrial loans (1) $         248,745 $    197,774 $    162,934 $        173,892 $         159,776 Noninterest-bearing demand deposits $         366,209 $    367,892 $    258,440 $        256,784 $         207,727 Interest-earning deposits in other banks $    135,460 $      750 2.20% $      24,007 $      140 2.32% Interest-earning deposits in other banks $    135,460 $      750 2.20% $    120,568 $      742 2.47% Weighted average number of common shares - basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138 Real estate: Interest-bearing demand deposits 303,037 292,550 127,182 124,933 - Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 944,429 13,901 5.84% Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 1,419,004 22,204 6.28% Weighted average number of common shares - diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245 1-4 single family residential loans 321,044 281,514 284,780 279,665 248,788 Interest-bearing NOW accounts 8,626 7,638 7,509 7,961 7,865 Investment securities and other 175,369 1,187 2.69% 39,056 235 2.38% Investment securities and other 175,369 1,187 2.69% 177,227 1,354 3.06% Basic earnings per common share $                          0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities: Construction, land and development loans 233,830 176,567 169,919 159,734 155,778 Savings and money market accounts 281,401 269,651 228,635 245,928 214,380 Total interest-earning assets 1,769,432 25,001 5.61% 1,007,492 14,276 5.62% Total interest-earning assets 1,769,432 25,001 5.61% 1,716,799 24,300 5.68% Diluted earnings per common share $                          0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449 Commercial real estate loans (including multifamily) 597,415 671,900 423,900 403,800 326,651 Time deposits 625,940 632,873 581,486 547,042 442,638 Noninterest-earning assets 150,139 77,988 Noninterest-earning assets 150,139 143,434 Basic and diluted earnings per share - Non-GAAP basis:
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449 Consumer loans and leases 17,663 20,745 21,631 24,378 18,174 Total deposits $      1,585,213 $ 1,570,604 $ 1,203,252 $     1,182,648 $         872,610 Total assets $ 1,919,571 $ 1,085,480 Total assets $ 1,919,571 $ 1,860,233 Net income $                        5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500 Municipal and other loans 68,905 69,711 62,691 61,339 51,501 Interest-bearing liabilities: Interest-bearing liabilities: Pre-tax adjustments:
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans: Total loans held in portfolio $      1,487,602 $ 1,418,211 $  1,125,855 $     1,102,808 $         960,668 Interest-bearing demand deposits $    285,306 $      349 0.49% $                - $           - 0.00% Interest-bearing demand deposits $    285,306 $      349 0.49% $    295,274 $      394 0.54% Noninterest income
Net interest income 20,479 19,751 15,435 13,862 11,690 Loans held for investment 1,487,602 1,418,211 1,125,855 1,102,808 960,668 Interest-bearing NOW accounts 7,846 3 0.15% 7,932 3 0.15% Interest-bearing NOW accounts 7,846 3 0.15% 7,619 3 0.16% Gain on sale of investment securities - (1,053) (1,081) - -
Provision for loan losses 900 332 849 700 486 Less: allowance for loan and lease losses (6,565) (6,277) (6,569) (6,286) (6,156) Savings and money market accounts 273,662 579 0.84% 212,511 338 0.63% Savings and money market accounts 273,662 579 0.84% 267,357 588 0.88% Noninterest expense
Net interest income after provision for loan losses 19,579 19,419 14,586 13,162 11,204 Loans, net 1,481,037 1,411,934 1,119,286 1,096,522 954,512 Time deposits 630,969 3,166 1.99% 442,149 1,856 1.67% Time deposits 630,969 3,166 1.99% 634,700 2,953 1.87% Merger related expenses 1,094 1,165 1,778 1,447 270
Noninterest income: Premises and equipment, net 65,144 62,815 55,237 53,877 46,135 FHLB advances and other borrowings 65,358 425 2.58% 77,471 389 1.99% FHLB advances and other borrowings 65,358 425 2.58% 75,856 611 3.23% Taxes:
Service charges and fees 866 969 729 649 462 Accrued interest receivable 6,319 7,039 4,849 4,934 3,715 Total interest-bearing liabilities 1,263,141 4,522 1.42% 740,063 2,586 1.39% Total interest-bearing liabilities 1,263,141 4,522 1.42% 1,280,806 4,549 1.42% Tax effect of adjustments (193) (168) (373) (149) (55)
SBA loan servicing fees 234 40 264 1,026 529 Other real estate owned and repossessed assets 1,042 1,324 518 782 289 Noninterest-bearing liabilities andshareholders' equity: Noninterest-bearing liabilities andshareholders' equity: Adjusted net income $                        6,231 $             5,771 $                 4,134 $                       3,811 $                        2,986
Mortgage referral fees 173 198 110 97 160 Goodwill 43,086 43,889 18,253 18,253 4,485 Noninterest-bearing demand deposits 380,997 192,408 Noninterest-bearing demand deposits 380,997 359,559 Weighted average number of common shares - basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032
Gain on sales of loans, net 1,151 1,384 804 1,236 1,369 Core deposit intangible 11,628 12,583 7,954 8,558 2,959 Other liabilities 4,232 3,182 Other liabilities 4,232 3,228 Weighted average number of common shares - diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301
Gain on sales of investment securities - 1,053 1,081 - - SBA servicing asset 3,548 3,570 3,747 3,965 3,561 Stockholders' equity 271,201 149,827 Stockholders' equity 271,201 216,640 Basic earnings per common share - Non-GAAP basis $                          0.41 $               0.42 $                   0.34 $                         0.35 $                          0.30
Other noninterest income 257 131 69 23 47 Deferred tax asset, net - 48 - 328 1,667 Total liabilities and stockholders' equity $ 1,919,571 $ 1,085,480 Total liabilities and stockholders' equity $ 1,919,571 $ 1,860,233 Diluted earnings per common share - Non-GAAP basis $                          0.40 $               0.41 $                   0.33 $                         0.33 $                          0.29
Total noninterest income 2,681 3,775 3,057 3,031 2,567 Bank-owned life insurance 15,521 15,432 7,442 7,401 483 Net interest rate spread 4.19% 4.23% Net interest rate spread 4.19% 4.26%
Noninterest expense: Federal Home Loan Bank and other bank stock, at cost 6,233 6,190 5,264 5,304 4,861 Net interest income and margin $ 20,479 4.59% $ 11,690 4.60% Net interest income and margin $ 20,479 4.59% $ 19,751 4.61%
Salaries and employee benefits 9,502 8,765 7,124 7,988 6,623 Other assets 4,005 4,485 4,464 4,276 2,806 Net interest income and margin (tax equivalent)(3) $ 20,632 4.63% $ 11,803 4.65% Net interest income and margin (tax equivalent)(3) $ 20,632 4.63% $ 19,863 4.64%
Occupancy and equipment expenses 1,710 1,690 1,262 1,479 1,279 Total assets $ 1,959,784 $ 1,907,333 $ 1,487,044 $     1,476,621 $      1,108,805
Professional services 791 1,022 1,041 1,806 624 Liabilities and Stockholders' Equity
Data processing and network 884 731 485 340 302 Liabilities:
Regulatory assessments and insurance (256) 315 98 307 266 Deposits:
Amortization of intangibles 1,015 1,006 603 390 176 Transaction accounts:
Advertising 134 167 97 81 83 Noninterest-bearing $    366,209 $    367,892 $    258,440 $        256,784 $         207,727
Marketing 136 132 139 154 115 Interest-bearing 593,064 569,839 363,326 378,822 222,245
Telephone expense 289 338 140 82 120 Total transaction accounts 959,273 937,731 621,766 635,606 429,972
Conversion expense 314 453 1,151 160 - Time deposits 625,940 632,873 581,486 547,042 442,638
Other operating expenses 1,037 1,206 864 789 693 Total deposits 1,585,213 1,570,604 1,203,252 1,182,648 872,610
Total noninterest expense 15,556 15,825 13,004 13,576 10,281 Accrued interest payable 1,002 1,134 737 702 475
Income before income tax expense 6,704 7,369 4,639 2,617 3,490 Short-term borrowings - - - 12,500 10,000
Income tax expense 1,374 1,542 829 104 719 Long-term borrowings 74,165 89,398 75,536 77,784 71,555
Net income $                      5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Deferred tax liability, net 215 - 449 - -
Other liabilities 2,451 2,087 3,094 4,191 3,272
Earnings per common share: Total liabilities 1,663,046 1,663,223 1,283,068 1,277,825 957,912
Basic $                        0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Stockholders' Equity:
Diluted $                        0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Common stock 251,875 204,974 171,159 169,939 127,541
Retained earnings 41,970 36,640 30,813 27,003 24,490
Weighted average common shares outstanding:  Accumulated other comprehensive income (loss) 3,091 2,496 2,004 1,854 (1,138)
Basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Treasury stock (198) - - - -
Diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 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

 

_______________________________________________________ Contacts: Dennard Lascar Investor Relations SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY
(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. Ken Dennard / Natalie Hairston Consolidated Statements of Income Consolidated Balance Sheets Loan Composition (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. Deposit Composition Average Balances and Yields (1) Average balances presented are derived from daily average balances. Average Balances and Yields (1) Average balances presented are derived from daily average balances. Reconciliation of Non-GAAP Financial Measures - Adjusted Net Income and Adjusted Basic and Diluted Earnings Per Share Reconciliation of Non-GAAP Financial Measures - Net Interest Margin on a Fully Taxable Equivalent Basis
(713) 529-6600 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (2) Includes loans on nonaccrual status. (Unaudited) (2) Includes loans on nonaccrual status. (Unaudited) (Unaudited)
STXB@dennardlascar.com (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. (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.
As of Three Months Ended September 30, Three Months Ended As of or for the Three Months Ended As of or for the Three Months Ended
For the Three Months Ended September 30, 2019 June 30, 2019 March 31,2019 December 31,2018 September 30,2018 As of As of 2019 2018 September 30, 2019 June 30, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 (Dollars in thousands) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate AverageBalance (1) Interest/Expense AnnualizedYield/Rate (Dollars in thousands, except per share data) (Dollars in thousands, except per share data)
(Dollars in thousands, except per share data) Assets: (Dollars in thousands) (Dollars in thousands) (Dollars in thousands) (Dollars in thousands) Basic and diluted earnings per share - GAAP basis: Net interest margin - GAAP basis:
Interest income: Cash and due from banks $      28,822 $      26,150 $      19,397 $          22,664 $           18,212 Loans: Deposits: Interest-earning assets: Interest-earning assets: Net income available to common stockholders $                        5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Net interest income $                      20,479 $           19,751 $               15,435 $                     13,862 $                      11,690
Interest and fees on loans $                    23,064 $           22,204 $               17,118 $                     15,817 $                      13,901 Interest-bearing deposits in other banks 122,721 137,008 103,265 66,351 25,926 Commercial and industrial loans (1) $         248,745 $    197,774 $    162,934 $        173,892 $         159,776 Noninterest-bearing demand deposits $         366,209 $    367,892 $    258,440 $        256,784 $         207,727 Interest-earning deposits in other banks $    135,460 $      750 2.20% $      24,007 $      140 2.32% Interest-earning deposits in other banks $    135,460 $      750 2.20% $    120,568 $      742 2.47% Weighted average number of common shares - basic 15,370,480 13,765,929 12,152,558 10,994,467 9,792,032 Average interest-earning assets 1,769,432 1,716,799 1,346,104 1,199,125 1,007,492
Interest and dividends on investment securities 1,143 1,302 1,182 897 202 Total cash and cash equivalents 151,543 163,158 122,662 89,015 44,138 Real estate: Interest-bearing demand deposits 303,037 292,550 127,182 124,933 - Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 944,429 13,901 5.84% Loans, including loans held for sale (2) 1,458,603 23,064 6.27% 1,419,004 22,204 6.28% Weighted average number of common shares - diluted 15,771,249 14,236,244 12,607,445 11,450,552 10,360,301 Net interest margin 4.59% 4.61% 4.65% 4.59% 4.60%
Other interest income 794 794 584 208 173 Time deposits in other banks 1,225 1,225 - - 245 1-4 single family residential loans 321,044 281,514 284,780 279,665 248,788 Interest-bearing NOW accounts 8,626 7,638 7,509 7,961 7,865 Investment securities and other 175,369 1,187 2.69% 39,056 235 2.38% Investment securities and other 175,369 1,187 2.69% 177,227 1,354 3.06% Basic earnings per common share $                          0.35 $               0.42 $                   0.31 $                         0.23 $                          0.28 Net interest margin - Non-GAAP basis:
Total interest income 25,001 24,300 18,884 16,922 14,276 Investment securities: Construction, land and development loans 233,830 176,567 169,919 159,734 155,778 Savings and money market accounts 281,401 269,651 228,635 245,928 214,380 Total interest-earning assets 1,769,432 25,001 5.61% 1,007,492 14,276 5.62% Total interest-earning assets 1,769,432 25,001 5.61% 1,716,799 24,300 5.68% Diluted earnings per common share $                          0.34 $               0.41 $                   0.30 $                         0.22 $                          0.27 Net interest income $                      20,479 $           19,751 $               15,435 $                     13,862 $                      11,690
Interest expense: Available for sale securities, at fair value 166,669 171,058 131,068 179,461 33,449 Commercial real estate loans (including multifamily) 597,415 671,900 423,900 403,800 326,651 Time deposits 625,940 632,873 581,486 547,042 442,638 Noninterest-earning assets 150,139 77,988 Noninterest-earning assets 150,139 143,434 Basic and diluted earnings per share - Non-GAAP basis: Plus:
Interest on deposits 4,097 3,938 3,071 2,613 2,197 Total investment securities 166,669 171,058 131,068 179,461 33,449 Consumer loans and leases 17,663 20,745 21,631 24,378 18,174 Total deposits $      1,585,213 $ 1,570,604 $ 1,203,252 $     1,182,648 $         872,610 Total assets $ 1,919,571 $ 1,085,480 Total assets $ 1,919,571 $ 1,860,233 Net income $                        5,330 $             5,827 $                 3,810 $                       2,513 $                        2,771 Impact of fully taxable equivalent adjustment 153 112 138 114 113
Interest on FHLB advances and other borrowings 425 611 378 447 389 Loans held for sale 2,784 2,583 6,300 3,945 5,500 Municipal and other loans 68,905 69,711 62,691 61,339 51,501 Interest-bearing liabilities: Interest-bearing liabilities: Pre-tax adjustments: Net interest income on a fully taxable equivalent basis $                      20,632 $           19,863 $               15,573 $                     13,976 $                      11,803
Total interest expense 4,522 4,549 3,449 3,060 2,586 Loans: Total loans held in portfolio $      1,487,602 $ 1,418,211 $  1,125,855