Spirit of Texas Bancshares Inc. (STXB) Tops Q2 EPS by 15c

Spirit of Texas Bancshares Inc. (NASDAQ: STXB) reported Q2 EPS of $0.44, $0.15 better than the analyst estimate of $0.29.

Second Quarter 2020 Financial and Operational Highlights

• Deployed our talented and experienced lending team to assist more than 3,200 businesses in obtaining PPP loans totaling $428 million, as of June 30, 2020, generating $15.3 million of origination fees that will be accreted into income over the life of the loans.
• Capital continues to remain strong with a Tier 1 capital leverage ratio of 9.60% at Spirit of Texas Bank SSB (the "Bank") and 9.49% at the Company on a consolidated basis.
• Net interest margin for the second quarter as reported and on a tax equivalent basis(1) were 3.95% and 4.00%, respectively. Net interest margin was negatively impacted by the origination of PPP loans which yield 1.00% and reduced the net interest margin by 19 basis points.
• At June 30, 2020, return on average assets was 1.07% annualized.
• Book value per share increased to $20.01 at June 30, 2020 and tangible book value per share(1) increased to $14.97 at the same date.
• At June 30, 2020, total stockholders' equity to total assets was 11.73% and tangible stockholders' equity to tangible assets(1) was 9.04%.

Dean Bass, Spirit's Chairman and Chief Executive Officer, stated, "We are extremely pleased to report such strong quarterly results despite an extremely tough operating environment. We are truly blessed to have some of the strongest and most committed bankers in the business who worked tirelessly to assist current and new customers obtain capital through the Paycheck Protection Program. We were only able to accomplish the impressive volume of PPP loan originations during the quarter because of the robust staff that we maintain. Additionally, the origination fees, which will be earned over the relatively short life of these loans, represent an attractive return on investment for our shareholders. We remain absolutely committed to the safety of our employees and customers as the global pandemic continues to evolve and will continue to seek unique opportunities to deploy resources and create shareholder value during these challenging times."

For earnings history and earnings-related data on Spirit of Texas Bancshares Inc. (STXB) click here.

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