Solera National Bancorp Announces First Quarter 2024 Financial Results

Rhea-AI Summary

Solera National Bancorp, Inc. (OTC PINK:SLRK) reported strong financial results for Q1 2024, with a pre-tax and pre-provision income of $5.3 million and a net income of $3.0 million ($0.70 per share). The company showed positive growth in key financial metrics, including a 13% increase in net interest income compared to Q1 2023. Solera's focus on customer experience and upcoming website improvements highlight its commitment to offering exceptional service and maintaining efficiency.

Positive

• Q1 2024 pre-tax and pre-provision income of $5.3 million.
• Net income of $3.0 million ($0.70 per share).
• Net interest income increased by 13% from Q1 2023.
• Total interest income of $17.2 million, a 29% increase from Q1 2023.
• Earning asset yield rose to 6.03% from 5.25% in Q1 2023.
• Return on equity stood at 15.05%.
• Efficiency ratio was 48.49%.
• Focus on customer experience and new website launch at the end of April.
• Commitment to offering great products, exceptional rates, and personalized service.
• Strategic positioning to navigate changing economic landscape.

Negative

• None.

Q1 2024 pre-tax and pre-provision income of $5.3 million.

Net income of $3.0 million (0.70 per share).

LAKEWOOD, CO / ACCESSWIRE / April 26, 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 March 31, 2024. For the first quarter of 2024, net income was $3.0 million ($0.70 per share). Q1 2024 net interest income of $9.2 million increased $1.0 million or 13% from Q1 2023.

1Q24 Financial Highlights

• The Company had a pre-tax and pre-provision income of $5.3 million.
• Total interest income of $17.2 million increased $3.8 million or 29% from Q1 2023.
• Earning asset yield increased to 6.03% from 5.25% or 15% from Q1 2023.
• Return on equity was 15.05%.
• Efficiency ratio was 48.49%.

Steve Snailum, COO, commented: "The customer experience is better than ever at Solera! We have been able to service a record number of customer requests through our phone support and new live chat option. We are also extremely excited to announce that we are launching a new and improved website at the end of April. Solera remains committed to offering great products, exceptional rates, and personalized service, all while maintaining a top-tier efficiency ratio."

Tim Pester, the Controller, commented: "Solera's adaptability and strategic foresight have positioned the bank to successfully navigate the Federal Reserve's current path of "rates higher for longer." To continue to steer through the constantly changing economic landscape, the bank will remain resilient and flexible."

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)	3/31/2024				12/31/2023				9/30/2023				6/30/2023				3/31/2023
ASSETS
Cash and due from banks	$	2,095			$	2,734			$	2,156			$	1,657			$	1,957
Federal funds sold		-				-				-				-				5,300
Interest-bearing deposits with banks		1,079				2,582				1,651				1,528				2,214
Investment securities, available-for-sale		185,120				183,579				169,673				173,552				170,033
Investment securities, held-to-maturity		200,575				200,825				199,875				204,900				205,425
FHLB and Federal Reserve Bank stocks, at cost		7,952				12,225				7,516				9,043				7,103
Paycheck Protection Program (PPP) loans, gross		65				79				86				111				111
Traditional loans, gross		820,936				787,280				746,198				745,666				717,943
Allowance for loan and lease losses		(10,808	)			(9,607	)			(9,405	)			(9,404	)			(8,847	)
Net traditional loans		810,128				777,672				736,793				736,262				709,096
Premises and equipment, net		29,448				28,173				28,918				27,625				26,816
Accrued interest receivable		7,807				7,272				7,232				6,557				7,044
Bank-owned life insurance		5,033				5,002				4,972				4,944				4,917
Other assets		8,607				6,547				12,611				8,952				10,291
TOTAL ASSETS	$	1,257,909			$	1,226,690			$	1,171,483			$	1,175,131			$	1,150,307
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits	$	508,615			$	511,616			$	509,382			$	539,522			$	536,880
Interest-bearing demand deposits		53,514				48,122				46,153				42,825				56,715
Savings and money market deposits		255,655				169,328				272,948				219,834				210,476
Time deposits		240,047				241,149				232,728				130,716				147,174
Total deposits		1,057,831				970,215				1,061,211				932,897				951,245
Accrued interest payable		1,347				2,677				1,042				150				70
Short-term borrowings		79,104				138,077				7,100				137,193				98,432
Long-term FHLB borrowings		34,000				34,000				34,000				34,000				34,000
Accounts payable and other liabilities		4,659				2,181				2,860				2,786				2,489
TOTAL LIABILITIES		1,176,941				1,147,150				1,106,213				1,107,026				1,086,236
Common stock		43				43				43				43				43
Additional paid-in capital		38,763				38,748				38,748				38,748				38,748
Retained earnings		57,440				54,420				50,877				46,240				42,562
Accumulated other comprehensive (loss) gain		(15,278	)			(13,671	)			(24,398	)			(16,926	)			(17,282	)
TOTAL STOCKHOLDERS' EQUITY		80,968				79,540				65,270				68,105				64,071
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,257,909			$	1,226,690			$	1,171,483			$	1,175,131			$	1,150,307

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

	Three Months Ended
($000s, except per share data)	3/31/2024			12/31/2023			9/30/2023			6/30/2023			3/31/2023
Interest and dividend income								18			18			17
Interest and fees on traditional loans	$	13,277		$	12,425		$	11,862		$	10,684		$	9,691
Interest and fees on PPP loans		-			-			-			-			11
Investment securities		3,693			3,704			3,602			3,679			3,549
Dividends on bank stocks		224			159			163			163			120
Other		30			88			59			23			17
Total interest income	$	17,224		$	16,376		$	15,686		$	14,549		$	13,388
Interest expense
Deposits		5,833			6,066			5,680			4,307			3,947
FHLB & Fed borrowings		2,200			1,662			1,497			1,819			1,281
Total interest expense		8,033			7,728			7,177			6,126			5,228
Net interest income		9,191			8,648			8,509			8,423			8,160
Provision for loan and lease losses		1,203			203			9			559			759
Net interest income after provision for loan and lease losses		7,988			8,445			8,500			7,864			7,401
Noninterest income
Customer service and other fees		443			528			372			417			405
Other income		616			617			822			972			747
Gain on sale of securities		60			68			-			-			242
Total noninterest income		1,119			1,213			1,194			1,389			1,394
Noninterest expense
Employee compensation and benefits		2,418			2,046			1,957			2,101			2,015
Occupancy		401			342			341			336			292
Professional fees		495			383			148			96			112
Other general and administrative		1,656			1,378			1,362			2,124			1,104
Total noninterest expense		4,970			4,149			3,808			4,657			3,523
Net Income Before Taxes	$	4,137		$	5,509		$	5,886		$	4,596		$	5,273
Income Tax Expense		1,118			1,965			985			968			689
Net Income	$	3,019		$	3,544		$	4,901		$	3,628		$	4,584
Income Per Share	$	0.70		$	0.82		$	1.14		$	0.84		$	1.07
Tangible Book Value Per Share	$	18.83		$	18.50		$	15.18		$	15.84		$	14.90
WA Shares outstanding		4,299,953			4,299,953			4,299,953			4,299,953			4,299,953
Pre-Tax Pre-Provision Income	$	5,340		$	5,712		$	5,895		$	5,155		$	6,032
Net Interest Margin		3.40	%		3.32	%		3.29	%		3.37	%		3.36	%
Cost of Funds		2.77	%		2.72	%		2.54	%		2.24	%		1.98	%
Efficiency Ratio		48.49	%		42.37	%		39.25	%		47.46	%		37.83	%
Return on Average Assets		0.97	%		1.18	%		1.67	%		1.25	%		1.71	%
Return on Average Equity		15.05	%		19.58	%		29.40	%		21.96	%		30.11	%
Leverage Ratio		7.7	%		7.6	%		7.6	%		7.3	%		7.2	%
Asset Quality:
Non-performing loans to gross loans		0.53	%		0.66	%		0.87	%		1.07	%		0.74	%
Non-performing assets to total assets		0.34	%		0.43	%		0.55	%		0.68	%		0.46	%
Allowance for loan losses to gross traditional loans		1.32	%		1.21	%		1.24	%		1.24	%		1.23	%
Criticized loans/assets:
Special mention	$	35,997		$	9,688		$	26,006		$	29,164		$	23,951
Substandard: Accruing		19,108			1,685			1,695			1,720			2,195
Substandard: Nonaccrual		4,332			5,223			6,508			8,005			5,300
Doubtful		-			-			-			-			-
Total criticized loans	$	59,437		$	16,596		$	34,209		$	38,889		$	31,446
Other real estate owned		-			-			-			-			-
Investment securities		-			-			-			-			-
Total criticized assets	$	59,437		$	16,596		$	34,209		$	38,889		$	31,446
Criticized assets to total assets		4.73	%		1.35	%		2.91	%		3.31	%		2.73	%

SOURCE: Solera National Bancorp, Inc.

View the original press release on accesswire.com

FAQ

What were Solera National Bancorp's Q1 2024 pre-tax and pre-provision income?

Solera National Bancorp reported a pre-tax and pre-provision income of $5.3 million for Q1 2024.

What was the net income for Solera National Bancorp in Q1 2024?

Solera National Bancorp achieved a net income of $3.0 million ($0.70 per share) in Q1 2024.

How much did Solera National Bancorp's net interest income increase by in Q1 2024 compared to Q1 2023?

Solera National Bancorp's net interest income increased by 13% in Q1 2024 compared to Q1 2023.

What is Solera National Bancorp's return on equity?

Solera National Bancorp's return on equity for Q1 2024 was 15.05%.

What is the efficiency ratio of Solera National Bancorp?

Solera National Bancorp's efficiency ratio for Q1 2024 was 48.49%.

What did the COO, Steve Snailum, mention about Solera's customer experience?

Steve Snailum, COO, highlighted that the customer experience at Solera is better than ever, with record customer requests handled through phone support and a new live chat option. He also announced the upcoming launch of a new and improved website at the end of April.

What did the Controller, Tim Pester, comment on Solera National Bancorp's positioning?

Tim Pester, the Controller, emphasized Solera's adaptability and strategic foresight in navigating the Federal Reserve's 'rates higher for longer' path. He mentioned that the bank is well-prepared to steer through the changing economic landscape with resilience and flexibility.