Solera National Bancorp Announces Fourth Quarter 2024 Financial Results

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Solera National Bancorp Announces Fourth Quarter 2024 Financial Results

ECONOMY 24.01.2025

Q4 2024 pre-tax and pre-provision income of $6.8 million. 2^nd best ever!

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Net income of $5.3 million ($1.24 per share). 2^nd best ever!

LAKEWOOD, CO / ACCESS Newswire / January 24, 2025 / 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 December 31, 2024. For the fourth quarter of 2024, net income was $5.3 million ($1.24 per share). Q4 2024 net interest income of $10.3 million increased $1.6 million or 19% from Q4 2023.

4Q24 Financial Highlights

The Company had a pre-tax and pre-provision income of $6.8 million. 20% or $1.1 million increase from Q4 24.
Net income of $5.3 million ($1.24 per share).
$18 million decrease in special mention assets.
Return on assets was 1.82%.
Return on equity was 23.86%.
Efficiency ratio was 41.47%.

Steve Snailum, COO, commented: "Solera delivers a tremendous end to a remarkable year! The bank is operating at a high level by expertly balancing efficiency and security. The team has been working hard to continue to leverage technology and expertise to deliver robust, secure, and expedient services to our customers. It is a great time to be a Solera employee and customer!"

Jay Hansen, Chief Financial Officer, commented: "Our goal is to get to a 10% Tier 1 capital ratio. We ended 2024 at 9.55% (point in time vs quarterly average), but could have sold $20M in securities to gain another 20 BPS on our ratio. Those securities will mature in March of 2025 and would have taken a loss of over $100K. We chose NOT to sell those securities because we don't sell securities for losses unless a business opportunity presents itself. We will get those 20 BPS in March 2025."

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)	12/31/2024		9/30/2024		6/30/2024		3/31/2024		12/31/2023
ASSETS
Cash and due from banks	$	2,329	$	2,193	$	2,241	$	2,095	$	2,734
Federal funds sold	800	400	-	-	-
Interest-bearing deposits with banks	148	595	844	1,079	2,582
Investment securities, available-for-sale	322,375	317,180	183,311	185,120	183,579
Investment securities, held-to-maturity	-	-	200,457	200,575	200,825
FHLB and Federal Reserve Bank stocks, at cost	7,457	3,204	10,959	7,952	12,225
Paycheck Protection Program (PPP) loans, gross	20	35	50	65	79
Traditional loans, gross	792,733	797,516	792,739	820,936	787,280
Allowance for loan and lease losses	(10,913	)	(10,912	)	(10,810	)	(10,808	)	(9,607	)
Net traditional loans	781,820	786,604	781,929	810,128	777,672
Premises and equipment, net	33,476	32,289	30,625	29,448	28,173
Accrued interest receivable	7,750	6,940	7,808	7,807	7,272
Bank-owned life insurance	5,127	5,095	5,063	5,033	5,002
Other assets	10,544	8,734	8,325	8,607	6,547
TOTAL ASSETS	$	1,171,846	$	1,163,269	$	1,231,612	$	1,257,909	$	1,226,690

LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits	$	485,332	$	497,661	$	503,819	$	508,615	$	511,616
Interest-bearing demand deposits	54,804	64,606	62,905	53,514	48,122
Savings and money market deposits	100,987	103,118	102,892	255,655	169,328
Time deposits	294,337	353,405	272,744	240,047	241,149
Total deposits	935,460	1,018,790	942,360	1,057,831	970,215

Accrued interest payable	2,587	2,618	2,104	1,347	2,677
Short-term borrowings	106,267	13,300	164,613	79,104	138,077
Long-term FHLB borrowings	34,000	34,000	34,000	34,000	34,000
Accounts payable and other liabilities	4,576	5,395	3,961	4,659	2,181
TOTAL LIABILITIES	1,082,891	1,074,104	1,147,038	1,176,941	1,147,150

Common stock	43	43	43	43	43
Additional paid-in capital	38,748	38,748	38,778	38,763	38,748
Retained earnings	72,455	67,163	61,667	57,440	54,420
Accumulated other comprehensive (loss) gain	(22,291	)	(16,789	)	(15,914	)	(15,278	)	(13,671	)
TOTAL STOCKHOLDERS' EQUITY	88,955	89,165	84,574	80,968	79,540
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,171,846	$	1,163,269	$	1,231,612	$	1,257,909	$	1,226,690

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

Three Months Ended
($000s, except per share data)	12/31/2024		9/30/2024		6/30/2024		3/31/2024		12/31/2023
Interest and dividend income
Interest and fees on traditional loans	$	13,615	$	13,854	$	13,270	$	13,277	$	12,425
Interest and fees on PPP loans	-	-	-	-	-
Investment securities	3,297	3,544	3,721	3,693	3,704
Dividends on bank stocks	131	160	249	224	159
Other	13	19	22	30	88
Total interest income	$	17,056	$	17,577	$	17,262	$	17,224	$	16,376
Interest expense
Deposits	5,564	6,312	5,285	5,833	6,066
FHLB & Fed borrowings	1,223	1,332	2,831	2,200	1,662
Total interest expense	6,787	7,644	8,116	8,033	7,728
Net interest income	10,269	9,933	9,146	9,191	8,648
Provision for loan and lease losses	6	105	4	1,203	203
Net interest income after provision for loan and lease losses	10,263	9,828	9,142	7,988	8,445
Noninterest income
Customer service and other fees	470	389	468	443	528
Other income	954	1,138	738	616	617
Gain on sale of securities	-	858	-	60	68
Total noninterest income	1,424	2,385	1,206	1,119	1,213
Noninterest expense
Employee compensation and benefits	2,611	2,472	2,514	2,418	2,046
Occupancy	492	393	387	401	342
Professional fees	309	122	75	495	383
Other general and administrative	1,437	1,423	1,582	1,656	1,378
Total noninterest expense	4,849	4,410	4,558	4,970	4,149
Net Income Before Taxes	$	6,838	$	7,803	$	5,790	$	4,137	$	5,509
Income Tax Expense	1,526	2,294	1,564	1,118	1,965
Net Income	$	5,312	$	5,509	$	4,226	$	3,019	$	3,544

Income Per Share	$	1.24	$	1.28	$	0.98	$	0.70	$	0.82
Tangible Book Value Per Share	$	20.69	$	20.74	$	19.67	$	18.83	$	18.50
WA Shares outstanding	4,299,953	4,299,953	4,299,953	4,299,953	4,299,953
Pre-Tax Pre-Provision Income	$	6,844	$	7,908	$	5,794	$	5,340	$	5,712
Net Interest Margin	3.81	%	3.67	%	3.39	%	3.40	%	3.32	%
Cost of Funds	2.51	%	2.72	%	2.80	%	2.77	%	2.72	%
Efficiency Ratio	41.47	%	38.48	%	44.03	%	48.49	%	42.37	%
Return on Average Assets	1.82	%	1.84	%	1.36	%	0.97	%	1.18	%
Return on Average Equity	23.86	%	25.37	%	20.42	%	15.05	%	19.58	%
Leverage Ratio	9.5	%	9.1	%	8.2	%	7.7	%	7.6	%

Asset Quality:
Non-performing loans to gross loans	0.52	%	0.65	%	0.48	%	0.53	%	0.66	%
Non-performing assets to total assets	0.35	%	0.45	%	0.31	%	0.34	%	0.43	%
Allowance for loan losses to gross traditional loans	1.38	%	1.37	%	1.36	%	1.32	%	1.21	%
* Not meaningful due to the insignificant amount of non-performing loans.


Criticized loans/assets:
Special mention	$	10,730	$	29,145	$	25,244	$	35,997	$	9,688
Substandard: Accruing	14,911	22,410	23,030	19,108	1,685
Substandard: Nonaccrual	4,142	5,180	3,784	4,332	5,223
Doubtful	-	-	-	-	-
Total criticized loans	$	29,782	$	56,735	$	52,058	$	59,437	$	16,596
Other real estate owned	-	-	-	-	-
Investment securities	-	-	-	-	-
Total criticized assets	$	29,782	$	56,735	$	52,058	$	59,437	$	16,596
Criticized assets to total assets	2.54	%	4.88	%	4.23	%	4.73	%	1.35	%

SOURCE: Solera National Bancorp, Inc.

View the original press release on ACCESS Newswire

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Arizona Tribune - Solera National Bancorp Announces Fourth Quarter 2024 Financial Results

Solera National Bancorp Announces Fourth Quarter 2024 Financial Results

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