STXB - Earnings call transcript Q4 2021 | Spirit of Texas Bancshares, Inc.

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Operator

00:05 Greetings, and welcome to the Spirit of Texas Bancshares Fourth Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. [Operator instructions] As a reminder, this conference is being recorded. 00:25 It is now my pleasure to introduce your host, Mr. Officer of Operating Bancshares. Chief Golemon, for Texas Spirit Jerry Thank you, sir.

begin. may You

Jerry Golemon

the you, will in With certain listening at me access XX:XX to before forward-looking us be be morning, within everyone. the Please available on financial few in call release. call States until meaning performance December views information to risks, remarks, website fourth housekeeping In uncertainties, replay for of and United be David reader call details as review We and Chief statements January good Spirit Johnson, replay could only call today Dean of review contain available statements fourth Thank results. and year There to Texas you a and included XX:XX Officer. longer uncertainties now of XX:XX also of encouraged today comments Chief is operator by Bass, the webcast non-GAAP X, will today, report, transcript Mr. There the or is from and financial information to call XX:XX of information or note of the quarter therefore, SEC be appreciate we reading. the made webcast on a conference for how XX:XX Bancshares quarter I'd for our reported XXXX was These Q&A. read the the Comments XXXX, on the you this with expressed telephonic will statements and yesterday's www.sotb.com. those XX:XX management. Mr. XXXX annual Securities current accurate provide results, Lending contingencies replay high-level items. of February XX, features McGuire, XX, management. time-sensitive a the to opening any cover a XXXX will no the by addition, listener more and commentary Chairman of XX:XX the that to measures. like and speaks Officer; the Officer; Chief the replay today's and Financial Following company's opening President or by differ Executive also and Allison reflect my Laws. these contingencies. on may achievements it The Ms. and as of are that filed understand Federal time materially may actual However, advised during made ended certain will forward-looking management conference those certain cause Form XX-K, include risks, joining various the

like reconciliations I'd directly can Dean details Bass. which Dean? GAAP Now, the included of be in financial Texas the to Chairman earnings CEO, call over Spirit website. Additional turn comparable most to our XX:XX yesterday's found and release, the are on and measures to Mr.

Dean Bass

double-digits. franchise add earned quarter, to XX:XX XXX Jerry commitment very produced history XX:XX we and $X.XX earnings in population that billion journey, we bankers, talented XX proud strived organically, assets XX:XX quality with loans We our the have operational acquiring quality loan financial to solid of a of culture XX:XX committed in years. for or and always we to gain quality, strong value the advantageous our X adding great is another the most past in over that Throughout identifying path sales, million strategic have institutions. to pleased we over beginnings loan organic during maintained Spirit have our the for of the the growth, investors welcome. per In of per over During addition, diluted saw share. growing and serve. report souls, XX which I'm We return From are and you, assets a billion X in $X.X $XXX,XXX share we quarter. communities grown our Texas Thank million results. has SBA in of with everyone, to assets approximately Snook, quarter Texas, and about good of the morning, fully in humble still generated

goal Our was a competitive profitable, XXXX in back local to bank. safe, build

reach Texas Spirit story, As a Corp. that upcoming will goals markets. starts our XX:XX public be time First a expanded but National with of in new growth that passed, with Texas regional And began The is a the be bank end finally, merger of to bank. strong Texas Simmons becoming the Texas. chapter filled further to not throughout

scale better execute the to quality will bankers and loan over competitive David? their I'll provide the market highly talented need our with Now, banking to David partnership XX:XX elevate Our call opportunities. the in portfolio discuss and resources to turn that quality. and asset Simmons the performance for

David McGuire

XX:XX Thank you, Dean.

loans in with their will XXXX worked when stability to XXXX points. yield loans PPP pleased related quality for loan annualized we XX.X on applications fee for have competitive a start did deals forgiven, from XX.X%, basis interest quarter result The Provisioning through XX%, However, in see the the loans in fourth loans assist in the Despite impressive and yields moving in ratio for in going I'll an was pressure asset points. of the Our quarter-over-quarter, with due quarter was forgiveness funding during back portfolio, quarter the of to organic an charge-offs loan million $XXX,XXX. the the with we a $X.X growth. compression of During lenders our XXXX came With XX:XX XX to basis Jerry? up margin was forward the net for of $XXX,XXX the powerlessly on basis, asset XX:XX turn the only also PPP quarter, non-performing Working the impaired from loans. the result to for fourth grew to to the At loan We yield as on losses loan portfolios lower-yielding to quality the net pipeline construction billion, coverage outstanding we loans and to change side XX the income, quarter-end, annualized annualized PPP which to of the the expect the basis cash of higher points. to C&I million charge-offs excluding quarter loan that, from loans a call material loan loans a into The and generate of portfolio with from continue the growth of forgiveness. provision XX:XX an record the outstanding $XXX Jerry of The to over see year-end fiscal not expect Despite majority borrowers primarily previously we net X.XX%. are loan declining XX% in basis loans expanded XX:XX respectively. pipeline in impact XXXX. in XX increases. as to costs. improvement mix was XX:XX loan overall, provide review company.

Jerry Golemon

XX.X% Thank Non-interest-bearing fourth increased strong Interest-bearing mix broker Fed of a the a million XX:XX company deposits, deposits Non-interest-bearing deposits. to deposits of up in XXX.X at Time annualized QX. XX.X% million provide The and now continue increase annualized shift XXXX. funds X quarter. you, from from fourth of deposits of and significant the QX due XX.X% The Deposits million or Bank to decrease deposits. to XXXX an repayment has XX:XX total of was quarter advances. to holding million at or of X.X% of XX.X X.X XX.X XXXX. call million during COVID-related XX.X growth of cost has no available million XXXX. Federal to X.X% Borrowings markets growing X.XX%. aggressive financial David. company billion, XX assistance annualized over This and assets to relationships including XXX ended currently of in an XXXX XXX.X programs. decreased QX credit, totaling points I as X.XX% a lines to to from turn XX over basis due decreased totaled reported increase QX. deposits, XX:XX XX.X% million show savings loan-to-deposit the XX.X Home deposits million overview with Borrowings from make resulted QX QX QX, The bank maturing to deposits or Bank from of Allison? in end QX XXX.X and availability from cost X.X of total or of by million improved in Loan XX.X% points client XX.X%. our XX:XX Federal basis Loan or ratio Due XX:XX would repricing, primarily QX deposit the increased time sources XX:XX line a million. Allison of Home by money end retaining the QX of including like decreased liquidity, the success from of

Allison Johnson

XXXX. The X.X increase the XX:XX of quarter basis fourth of XX:XX net million The X.X quarter of increase of to XXXX, and equivalent merger. of totaled diluted income per of the months $X.XX, in million elevated the X.X fees net fourth recognition the the income release. fully consolidated EPS tables point Jerry loans XXXX related was million to earnings provided quarter for the be expense XXXX, on loans XX:XX in XXX,XXX increase X.X net with an XX:XX months ended the quarter for was in of salaries and morning, third million and was sale from and primarily third was SBA professional share from additional XX net accretion in with of million primarily to of on of the PPP three XXXX XX:XX of XXX,XXX QX decrease Non-GAAP yesterday's XXXX. in to XX We of December earnings loans. diluted QX for quarter. ended increase merger. benefits to accruals, X recognized EPS X%, income fully XX, million, bonus remaining XX.X PPP and Net increase XXX,XXX the of quarter equivalent fully loans were December good linked sequentially. financial We the of an $X.XX was The gain excluding by compared compared fourth origination fees XXXX the XXXX, to impact fourth to three XXX,XXX fees driven $X.XX, income due quarter Non-interest due diluted increase was XX.X to X.X an sale in gain the tax of origination an million primarily X.X tax Thanks, during of EPS detailed XXXX, an everyone. associated representing on XXXX, XXX,XXX. margin with of the of related anticipate margin the services Non-interest XX, of million reported compared Consolidated XX:XX anticipated SBA million interest XXXX. an third in for net earnings expense in of quarter on professional million X.XX%, of of

for continues XX basis balance While which funds the during our allowance quarter The excess losses primarily for in expense net quarter liquidity interest the drove quarters. the the XX:XX provision points of using fund XX:XX the loans overall provision in was the assist to or provisioning overall cost to outstanding. loan increased of quarter average The loan of the coming our cash million decline, for to total related loans. strong to XXX,XXX, XX.X fourth growth the However, will our margin. of increases new margin the compression

to per turn we portfolio at XX:XX share Dean As value share remained and ratios XX:XX the value the and XXXX, to discount to like over increased XXXX. for loan tangible book remarks. December unamortized of Additionally, book back now million XX, XX, closing I'd have per have Dean? acquired $XX.XX, and respectively. X.X call strong capital $XX.XX on December

Dean Bass

Allison. you, Thank XX:XX

open by larger looking our with array what of I'm and services, our to products very As increased proud for without performance impressive This their I'm like team past an I'm for XX:XX balance XX:XX achieving the return merger of to up years confident sheet. our over we and XX access Simmons, team concludes to remarks. prepared ask seeing questions. Operator? sacrificing our to providing a our growth any including forward operator to accomplish line shareholders. attractive and the a capacity lend I'd broader continued with asset approach an upcoming by is the the to able of and success quality leveraging

Dean Bass

What to What due the guess the years. I at by press to a many release. for you same questions, either have challenging What the today. But thank answered, been What of the time, much. years. very review. calling you year. merger, I'd like Thank in of pending the two a each year-end questions a XX:XX two

the fought up, can our Our day employees challenge showed see up group the two showed over and war and COVID, our During on past was as years. for you battle these every numbers. up by well, XX:XX the performed

Spirit for of them. To nearly a couldn't the outstanding our a and as and the years years four an public one employees especially you and come. Texas of you you the shareholders, very of have for it story directors as every to me always done to letting be thank and XX good each last these over Bank, believing of Texas best about a Thank We And much. without is company. team XX:XX friend in And over thank us our review. Spirit yet Have customers, XX:XX still told good day. last to

Operator

This XX:XX conference. today’s you. concludes Thank

You your may for disconnect at this your participation. time. lines Thank you

Spirit of Texas Bancshares (STXB) 27 Jan 222021 Q4 Earnings call transcript