Solera National Bancorp Inc.

07/22/2024 | Press release | Distributed by Public on 07/22/2024 21:19

Solera National Bancorp Announces Second Quarter 2024 Financial Results

Q2 2024 pre-tax and pre-provision income of $5.8 million.

Net income of $4.2 million (0.98 per share).

American Banker recognizes Solera National Bank as a best-performing bank, #3.

LAKEWOOD, CO / ACCESSWIRE / July 22, 2024 / Solera National Bancorp, Inc. (OTC Pink:SLRK) ("Company"), the holding company for Solera National Bank ("Bank"), a business-focused bank located in the Denver metropolitan area, today reported financial results for the three months ended June 30, 2024. For the second quarter of 2024, net income was $4.2 million ($0.98 per share). Q2 2024 net interest income of $9.2 million increased $0.7 million or 9% from Q2 2023.

2Q24 Financial Highlights

  • The Company had a pre-tax and pre-provision income of $5.8 million. 10% increase from Q1 24 and a 12% increase from Q2 23.

  • Total interest income of $17.3 million increased $2.7 million or 19% from Q2 2023.

  • Return on assets was 1.36%, up 40% from Q1 24.

  • Return on equity was 20.42%, up 36% from Q1 24.

  • Efficiency ratio was 44.03%.

Michael Quagliano, Executive Chairman of the Board, commented: "I have never been more encouraged by Solera National Banks future and each of the staff members are proficient in his or her job! Solera had just over $16,000,000 in total capital when I took over, and now, 10 years later, we have $111,000,000 in total capital. Most of the increase came from organic earnings."

Steve Snailum, COO, commented: "Solera continues to make strategic technological strides. In Q2, we launched our updated website, which more closely aligns with our customer commitment and capabilities. In Q3, we will launch an upgraded customer interaction platform that will provide customers and partners with an omnichannel experience. We have been and will remain focused on innovation that enhances customer experience, operational efficiency, and security."

Jay Hansen, Chief Financial Officer, commented: "American Banker has recognized Solera National Bank again in their peer group comparison for best publicly traded banks in the nation for under $2 billion in assets. The ranking is based on data from year-end 2023 and uses the institutions' three-year average return on average equity to determine the ranking. For 2023, we were ranked the 3rd best bank, up one position from the previous year. Our entire team is very proud of this achievement."

About Solera National Bancorp, Inc.

Solera National Bancorp, Inc. was incorporated in 2006 to organize and serve as the holding company for Solera National Bank, which opened for business in September 2007. Solera National Bank is a community bank serving the needs of emerging businesses and real estate investors. At the core of Solera National Bank is welcoming, attentive, and respectful customer service, a focus on supporting a growing and diverse economy, and a passion to serve our community through service, education, and volunteerism. For more information, please visit http://www.SoleraBank.com.

This press release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this release, which are not historical facts and that relate to future plans or projected results of Solera National Bancorp, Inc. and its wholly-owned subsidiary, Solera National Bank, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or implied. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

Contacts: Jay Hansen, CFO (303) 209-8600

FINANCIAL TABLES FOLLOW

SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(unaudited)

($000s)

6/30/2024

3/31/2024

12/31/2023

9/30/2023

6/30/2023

ASSETS
Cash and due from banks

$

2,241

$

2,095

$

2,734

$

2,156

$

1,657

Interest-bearing deposits with banks

844

1,079

2,582

1,651

1,528

Investment securities, available-for-sale

183,313

185,120

183,579

169,673

173,552

Investment securities, held-to-maturity

200,457

200,575

200,825

199,875

204,900

FHLB and Federal Reserve Bank stocks, at cost

10,959

7,952

12,225

7,516

9,043

Paycheck Protection Program (PPP) loans, gross

50

65

79

86

111

Traditional loans, gross

792,739

820,936

787,280

746,198

745,666

Allowance for loan and lease losses

(10,810

)

(10,808

)

(9,607

)

(9,405

)

(9,404

)

Net traditional loans

781,928

810,128

777,672

736,793

736,262

Premises and equipment, net

30,625

29,448

28,173

28,918

27,625

Accrued interest receivable

7,808

7,807

7,272

7,232

6,557

Bank-owned life insurance

5,063

5,033

5,002

4,972

4,944

Other assets

8,325

8,607

6,547

12,611

8,952

TOTAL ASSETS

$

1,231,612

$

1,257,909

$

1,226,690

$

1,171,483

$

1,175,131

LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits

$

503,819

$

508,615

$

511,616

$

509,382

$

539,522

Interest-bearing demand deposits

62,905

53,514

48,122

46,153

42,825

Savings and money market deposits

102,892

255,655

169,328

272,948

219,834

Time deposits

272,744

240,047

241,149

232,728

130,716

Total deposits

942,360

1,057,831

970,215

1,061,211

932,897

Accrued interest payable

2,104

1,347

2,677

1,042

150

Short-term borrowings

164,613

79,104

138,077

7,100

137,193

Long-term FHLB borrowings

34,000

34,000

34,000

34,000

34,000

Accounts payable and other liabilities

3,961

4,659

2,181

2,860

2,786

TOTAL LIABILITIES

1,147,038

1,176,941

1,147,150

1,106,213

1,107,026

Common stock

43

43

43

43

43

Additional paid-in capital

38,778

38,763

38,748

38,748

38,748

Retained earnings

61,667

57,440

54,420

50,877

46,240

Accumulated other comprehensive (loss) gain

(15,914

)

(15,278

)

(13,671

)

(24,398

)

(16,926

)

TOTAL STOCKHOLDERS' EQUITY

84,574

80,968

79,540

65,270

68,105

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,231,612

$

1,257,909

$

1,226,690

$

1,171,483

$

1,175,131

SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Three Months Ended

($000s, except per share data)

6/30/2024

3/31/2024

12/31/2023

9/30/2023

6/30/2023

Interest and dividend income
Interest and fees on traditional loans

$

13,270

$

13,277

$

12,425

$

11,862

$

10,684

Interest and fees on PPP loans

-

-

-

-

-

Investment securities

3,721

3,693

3,704

3,602

3,679

Dividends on bank stocks

249

224

159

163

163

Other

22

30

88

59

23

Total interest income

$

17,262

$

17,224

$

16,376

$

15,686

$

14,549

Interest expense
Deposits

5,285

5,833

6,066

5,680

4,307

FHLB & Fed borrowings

2,831

2,200

1,662

1,497

1,819

Total interest expense

8,116

8,033

7,728

7,177

6,126

Net interest income

9,146

9,191

8,648

8,509

8,423

Provision for loan and lease losses

4

1,203

203

9

559

Net interest income after
provision for loan and lease losses

9,142

7,988

8,445

8,500

7,864

Noninterest income
Customer service and other fees

469

443

528

372

417

Other income

738

616

617

822

972

Gain on sale of loan

(1

)

-

-

-

-

Gain on sale of securities

-

60

68

-

-

Total noninterest income

1,206

1,119

1,213

1,194

1,389

Noninterest expense
Employee compensation and benefits

2,514

2,418

2,046

1,957

2,101

Occupancy

387

401

342

341

336

Professional fees

75

495

383

148

96

Other general and administrative

1,582

1,656

1,378

1,362

2,124

Total noninterest expense

4,558

4,970

4,149

3,808

4,657

Net Income Before Taxes

$

5,790

$

4,137

$

5,509

$

5,886

$

4,596

Income Tax Expense

1,564

1,118

1,965

985

968

Net Income

$

4,226

$

3,019

$

3,544

$

4,901

$

3,628


Income Per Share

$

0.98

$

0.70

$

0.82

$

1.14

$

0.84

Tangible Book Value Per Share

$

19.67

$

18.83

$

18.50

$

15.18

$

15.84

WA Shares outstanding

4,299,953

4,299,953

4,299,953

4,299,953

4,299,953

Pre-Tax Pre-Provision Income

$

5,794

$

5,340

$

5,712

$

5,895

$

5,155

Net Interest Margin

3.39

%

3.40

%

3.32

%

3.29

%

3.37

%

Cost of Funds

2.80

%

2.77

%

2.72

%

2.54

%

2.24

%

Efficiency Ratio

44.03

%

48.49

%

42.37

%

39.25

%

47.46

%

Return on Average Assets

1.36

%

0.97

%

1.18

%

1.67

%

1.25

%

Return on Average Equity

20.42

%

15.05

%

19.58

%

29.40

%

21.96

%

Leverage Ratio

8.2

%

7.7

%

7.6

%

7.6

%

7.3

%


Asset Quality:
Non-performing loans to gross loans

0.48

%

0.53

%

0.66

%

0.87

%

1.07

%

Non-performing assets to total assets

0.31

%

0.34

%

0.43

%

0.55

%

0.68

%

Allowance for loan losses to gross traditional loans

1.36

%

1.32

%

1.21

%

1.24

%

1.24

%

* Not meaningful due to the insignificant amount of non-performing loans.


Criticized loans/assets:
Special mention

$

25,244

$

35,997

$

9,688

$

26,006

$

29,164

Substandard: Accruing

23,030

19,108

1,685

1,695

1,720

Substandard: Nonaccrual

3,784

4,332

5,223

6,508

8,005

Doubtful

-

-

-

-

-

Total criticized loans

$

52,058

$

59,437

$

16,596

$

34,209

$

38,889

Other real estate owned

-

-

-

-

-

Investment securities

-

-

-

-

-

Total criticized assets

$

52,058

$

59,437

$

16,596

$

34,209

$

38,889

Criticized assets to total assets

4.23

%

4.73

%

1.35

%

2.91

%

3.31

%

SOURCE: Solera National Bancorp, Inc.



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