Spirit of Texas Bancshares Inc. (STXB) Tops Q2 EPS by 17c

Spirit of Texas Bancshares Inc. (NASDAQ: STXB) reported Q2 EPS of $0.70, $0.17 better than the analyst estimate of $0.53.

• Non-interest income increased by $1.2 million or 47.3%, during the three months ended June 30, 2021 compared to the three months ended March 31, 2021.
• Noninterest expense was tightly controlled and only increased by $151 thousand during the three months ended June 30, 2021 compared to the three months ended March 31, 2021.
• Net interest margin for the second quarter of 2021 as reported and on a tax equivalent basis(1) was 4.06% and 4.14%, respectively.
• At June 30, 2021, return on average assets was 1.57% annualized.
• Book value per share increased to $22.01 at June 30, 2021 and tangible book value per share(1) increased to $17.12 at the same date.
• At June 30, 2021, total stockholders' equity to total assets was 12.25% and tangible stockholders\' equity to tangible assets(1) was 9.79%.

Dean Bass, Spirit\'s Chairman and Chief Executive Officer, stated, "I am extremely pleased to report another quarter of strong financial and operational results. While second quarter net income continues to be assisted by PPP fee income from the SBA, over the past year we have invested heavily in initiatives that increase profitability going forward, even as PPP fee income begins to decline in future quarters. We have fully implemented cost-cutting initiatives across the organization to unlock value where possible and invested in restructuring our SBA loan department to drive growth in non-interest income over the next few quarters. Excess cash has been directed to higher yielding interest earning assets while maintaining sufficient liquidity to fund future loan growth. Finally, we continue to focus on non-interest income growth with our swap product offerings.

"Asset quality continues to improve with second quarter nonperforming loans reaching pandemic lows and charge off activity staying within our historical tolerance range. The economic outlook, both nationally and locally, is strong and we are seeing demand for loans return. As our capital levels continue to improve sequentially, we will build the strength to pursue future strategic opportunities. Overall, I am extremely proud of our team and excited to see what the future holds for Spirit of Texas Bancshares," Mr. Bass concluded.

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

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