Solera National Bancorp Announces First Quarter 2025 Financial Results

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Solera National Bancorp Announces First Quarter 2025 Financial Results

ECONOMY 21.04.2025

Net income of $4.6 million ($1.08 per share), a $1.6 million or 54% increase from Q1 2024.

Q1 2025 pre-tax and pre-provision income of $6.4 million. 3rd best quarter!

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LAKEWOOD, CO / ACCESS Newswire / April 21, 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 March 31, 2025. See highlights below.

1Q25 Financial Highlights

Net income of $4.6 million ($1.08 per share), a $1.6 million or 54% increase from Q1 2024.
Net interest margin has improved 53 bps to 3.93% vs Q1 2024.
Solera had a pre-tax and pre-provision income of $6.4 million. 19% or $1.0 million increase from Q1 24.
Cost of funds has decreased to 2.49%, an improvement of 28 bps from Q1 2024.
Return on assets was 1.62%, a 65 bps improvement from Q1 2024.
Return on equity was 20.64%, a 561 bps improvement from Q1 2024.
Efficiency ratio was 44.31%, a 418 bps improvement from Q1 2024.

Mike Quagliano, Executive Chairman of the Board, commented: "We are $1.6M above last year, and we are off to a great start."

Steve Snailum, COO, commented: "Operational efficiency continues to be a tremendous strength for Solera. Through continuous process improvements and technological advancements, the team has been able to drive record-breaking customer outcomes. The average hold time to engage with one of our representatives is now below 30 seconds, and customer feedback remains extremely positive. It is easier than ever to become a customer of Solera, and once you are here, you will love your experience."

Avram Shabanyan, EVP, commented: "During my six years with Solera Bank, I've been proud to work closely with our self-directed partners-connecting customers to innovative banking products and expert support as they use their retirement accounts to invest in alternative assets. Solera Bank remains the industry leader in self-directed banking because we always put the customer first."

Jay Hansen, Chief Financial Officer, commented: "Our goal was to get to a 10% Tier 1 capital ratio, and we got to 10.4%. See my previous Q4 comment. We will take advantage of the very high treasury yields and improve our investment returns. The tariffs present some uncertainty in the market, but I believe we are well-positioned and have an amazing team and customers."

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)	3/31/25		12/31/24		9/30/24		6/30/24		3/31/24
ASSETS
Cash and due from banks	$	2,401	$	1,576	$	2,193	$	2,241	$	2,095
Federal funds sold	-	800	400	-	-
Interest-bearing deposits with banks	1,033	148	595	844	1,079
Investment securities, available-for-sale	290,397	322,375	317,180	183,311	185,120
Investment securities, held-to-maturity	-	-	-	200,457	200,575
FHLB and Federal Reserve Bank stocks, at cost	5,525	7,457	3,204	10,959	7,952
Paycheck Protection Program (PPP) loans, gross	5	20	35	50	65
Traditional loans, gross	766,687	792,753	797,516	792,739	820,936
Allowance for loan and lease losses	(10,914	)	(10,913	)	(10,912	)	(10,810	)	(10,808	)
Net traditional loans	755,773	781,840	786,604	781,929	810,128
Premises and equipment, net	33,236	33,476	32,289	30,625	29,448
Accrued interest receivable	7,153	7,750	6,940	7,808	7,807
Bank-owned life insurance	5,159	5,127	5,095	5,063	5,033
Other assets	11,103	8,820	8,734	8,325	8,607
TOTAL ASSETS	$	1,111,785	$	1,169,389	$	1,163,269	$	1,231,612	$	1,257,909
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits	$	466,455	$	484,604	$	497,661	$	503,819	$	508,615
Interest-bearing demand deposits	60,507	54,734	64,606	62,905	53,514
Savings and money market deposits	104,560	100,987	103,118	102,892	255,655
Time deposits	287,378	294,338	353,405	272,744	240,047
Total deposits	918,900	934,663	1,018,790	942,360	1,057,831
Accrued interest payable	1,808	2,587	2,618	2,104	1,347
Short-term borrowings	60,191	104,607	13,300	164,613	79,104
Long-term FHLB borrowings	34,000	34,000	34,000	34,000	34,000
Accounts payable and other liabilities	6,087	4,576	5,395	3,961	4,659
TOTAL LIABILITIES	1,020,987	1,080,434	1,074,104	1,147,038	1,176,941
Common stock	43	43	43	43	43
Additional paid-in capital	38,763	38,748	38,748	38,778	38,763
Retained earnings	77,076	72,455	67,163	61,667	57,440
Accumulated other comprehensive (loss) gain	(25,084	)	(22,291	)	(16,789	)	(15,914	)	(15,278	)
TOTAL STOCKHOLDERS' EQUITY	90,798	88,955	89,165	84,574	80,968
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,111,785	$	1,169,389	$	1,163,269	$	1,231,612	$	1,257,909

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

Three Months Ended
($000s, except per share data)	3/31/25		12/31/24		9/30/24		6/30/24		3/31/24
Interest and dividend income
Interest and fees on traditional loans	$	13,102	$	13,615	$	13,854	$	13,270	$	13,277
Interest and fees on PPP loans	(1	)	-	-	-	-
Investment securities	3,490	3,297	3,544	3,721	3,693
Dividends on bank stocks	175	131	160	249	224
Other	49	13	19	22	30
Total interest income	$	16,815	$	17,056	$	17,577	$	17,262	$	17,224
Interest expense
Deposits	4,959	5,564	6,312	5,285	5,833
FHLB & Fed borrowings	1,550	1,223	1,332	2,831	2,200
Total interest expense	6,509	6,787	7,644	8,116	8,033
Net interest income	10,306	10,269	9,933	9,146	9,191
Provision for loan and lease losses	7	6	105	4	1,203
Net interest income after provision for loan and lease losses	10,299	10,263	9,828	9,142	7,988
Noninterest income
Customer service and other fees	300	470	389	468	443
Other income	807	954	1,138	738	616
Gain on sale of securities	-	-	858	-	60
Total noninterest income	1,107	1,424	2,385	1,206	1,119
Noninterest expense
Employee compensation and benefits	2,656	2,611	2,472	2,514	2,418
Occupancy	448	492	393	387	401
Professional fees	259	309	122	75	495
Other general and administrative	1,694	1,437	1,423	1,582	1,656
Total noninterest expense	5,057	4,849	4,410	4,558	4,970
Net Income Before Taxes	$	6,349	$	6,838	$	7,803	$	5,790	$	4,137
Income Tax Expense	1,711	1,526	2,294	1,564	1,118
Net Income	$	4,638	$	5,312	$	5,509	$	4,226	$	3,019
Income Per Share	$	1.08	$	1.24	$	1.28	$	0.98	$	0.70
Tangible Book Value Per Share	$	21.12	$	20.69	$	20.74	$	19.67	$	18.83
WA Shares outstanding	4,299,953	4,299,953	4,299,953	4,299,953	4,299,953
Pre-Tax Pre-Provision Income	$	6,356	$	6,844	$	7,908	$	5,794	$	5,340
Net Interest Margin	3.93	%	3.81	%	3.67	%	3.39	%	3.40	%
Cost of Funds	2.49	%	2.51	%	2.72	%	2.80	%	2.77	%
Efficiency Ratio	44.31	%	41.47	%	38.48	%	44.03	%	48.49	%
Return on Average Assets	1.63	%	1.82	%	1.84	%	1.36	%	0.97	%
Return on Average Equity	20.64	%	23.86	%	25.37	%	20.42	%	15.05	%
Leverage Ratio	10.4	%	9.5	%	9.1	%	8.2	%	7.7	%
Asset Quality:
Non-performing loans to gross loans	0.42	%	0.52	%	0.65	%	0.48	%	0.53	%
Non-performing assets to total assets	0.29	%	0.35	%	0.45	%	0.31	%	0.34	%
Allowance for loan losses to gross traditional loans	1.42	%	1.38	%	1.37	%	1.36	%	1.32	%
* Not meaningful due to the insignificant amount of non-performing loans.
Criticized loans/assets:
Special mention	$	11,103	$	10,730	$	29,145	$	25,244	$	35,997
Substandard: Accruing	19,641	14,911	22,410	23,030	19,108
Substandard: Nonaccrual	3,251	4,142	5,180	3,784	4,332
Doubtful	-	-	-	-	-
Total criticized loans	$	33,995	$	29,782	$	56,735	$	52,058	$	59,437
Other real estate owned	-	-	-	-	-
Investment securities	-	-	-	-	-
Total criticized assets	$	33,995	$	29,782	$	56,735	$	52,058	$	59,437
Criticized assets to total assets	3.06	%	2.55	%	4.88	%	4.23	%	4.73	%

SOURCE: Solera National Bank

View the original press release on ACCESS Newswire

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Arizona Tribune - Solera National Bancorp Announces First Quarter 2025 Financial Results

Solera National Bancorp Announces First Quarter 2025 Financial Results

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