Solera National Bancorp Announces Fourth Quarter 2021 Financial Results

Rhea-AI Summary

Solera National Bancorp (OTC PINK:SLRK) reported significant financial growth for the year ended December 31, 2021. Pre-tax, pre-provision income soared 66% to $16.2 million, while net income surged 89% to $11.1 million year-over-year. The efficiency ratio improved to 35.66%, and traditional gross loans increased 55% to $419.6 million. Noninterest-bearing deposits reached $464.1 million, rising 19% quarter-over-quarter. Asset quality remained strong with criticized assets at 4.32% and nonperforming assets at 1.02% of total assets. Total assets grew 50% to $651.2 million.

Positive

• Pre-tax, pre-provision income increased 66% to $16.2 million.
• Net income rose 89% year-over-year to $11.1 million.
• Efficiency ratio improved to 35.66%, down from 41.16%.
• Traditional gross loans grew 55% to $419.6 million.
• Noninterest-bearing deposits increased by 97% year-over-year to $464.1 million.
• Total assets rose 50% to $651.2 million.

Negative

• Net income for Q4 2021 decreased to $2.6 million from $3.4 million in Q3 2021.
• Earnings per share dropped to $0.61 for Q4 2021 from $0.79 in Q3 2021.

LAKEWOOD, CO / ACCESSWIRE / February 3, 2022 / Solera National Bancorp, Inc. (OTC PINK:SLRK) ("Company"), the holding company for Solera National Bank ("Bank"), a business-focused bank primarily serving the Denver metropolitan area, today reported financial results for the three and twelve months ended December 31, 2021.

Highlights for the quarter and twelve-months ended December 31, 2021 include:

• Pre-tax, pre-provision income grew 66% year-over-year to $16.2 million for the twelve months ended December 31, 2021, compared to $9.8 million for the twelve months ended December 31, 2020.
• Net income increased 89% year over year to $11.1 million for the twelve months ended December 31, 2021, compared to $5.9 million for the year ended December 31, 2020.
• Cost of funds remained low for the year ended December 2021 at 15 basis points for the fourth quarter of 2021 and 17 basis points year-to-date 2021; this is a 47%, or 15 basis point, improvement over the 32 basis points cost of funds for the twelve-months ended December 31, 2021.
• The Company's efficiency ratio decreased to 35.66% for the year ended December 2021 compared to 41.16% for the year ended December 31, 2020.
• Traditional gross loans were at $419.6 million for the year ended December 31, 2021, a 55% increase from $271.1 million for the twelve-months ended December 31, 2020.
• Noninterest-bearing deposits rose 19%, or $73.9 million, quarter-over-quarter and $228.9 million, or 97%, year-over-year ending December 31, 2021 at $464.1 million.
• Asset quality remains strong with criticized assets at 4.32% of total assets and nonperforming assets at 1.02% of total assets as of December 31, 2021.
• Return on average assets increased by 41 basis points to 2.04% for the year ended December 2021 compared to 1.63% for the year ended December 2020.
• Return on average equity increased to 20.84% as compared to 13.51% as of December 2020.

For the three months ended December 31, 2021, the Company reported net income of $2.6 million, or $0.61 per share, compared to $3.4 million, or $0.79 per share, for the third quarter of 2021 and $1.9 million, or $0.43 per share, for the three months ended December 31, 2020. The year ended December 31, 2021 with net income of $11.1 million, or $2.58 per share, compared to $5.9 million, or $1.42 per share, for the year ended December 31, 2020.

Cheri Walz, CFO, commented: "We ended the year with the same momentum as our growth in the third quarter. Our fourth-quarter results were not only driven by an increase in loans but also from adding record levels of noninterest-bearing deposits. Our Bank is very focused on maintaining strong asset quality and we will continue to do so as we grow. Additionally, our efficient operations helped us to control overhead expenses which also contributes to the favorable results we continue to see."

Total assets ended at $651.2 million for the twelve months ended December 31, 2021, an increase of 50% compared to total assets of $435.8 million as of December 31, 2020. Total deposits were $587.9 million at December 31, 2021, an increase of 54% compared to total deposits of $382.1 million at December 31, 2020. Net loans were $462.2 million at December 31, 2021, an increase of 37% from net loans of $337.7 million at December 31, 2020. After adjusting for Paycheck Protection Program Loans, net loans were $412.8 million at December 31, 2021, an increase of 55% from $265.5 million at December 31, 2020. At December 31, 2021, the Bank had $49.4 million in Paycheck Protection Program loans, net, as compared to $72.1 million at December 31, 2020. The loans are considered short-term and are paid off by the Small Business Administration as the borrower(s) qualify for forgiveness. The outstanding balance of Paycheck Protection Program loans is expected to continue declining through the remainder of next year.

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 diverse economy, and a passion to serve our community through service, education and volunteerism. For more information, please visit https://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.

For More Information Contact: February 3, 2022

Cheri Walz, Chief Financial Officer
720-764-9090
cwalz@solerabank.com

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

($000s)		12/31/2021				9/30/2021				6/30/2021				3/31/2021				12/31/2020
ASSETS
Cash and due from banks		$	4,124			$	2,714			$	2,525			$	2,418			$	4,384
Federal funds sold			12,000				15,000				2,700				2,000				6,200
Interest-bearing deposits with banks			1,251				1,267				880				828				807
Investment securities, available-for-sale			130,199				82,588				73,308				74,074				52,877
Investment securities, held-to-maturity			10,500				10,423				10,421				10,420				10,418
FHLB and Federal Reserve Bank stocks, at cost			2,853				1,626				2,330				2,766				1,322
Paycheck Protection Program (PPP) loans, gross			50,901				68,901				97,172				135,102				73,705
Net deferred (fees)/expenses, PPP loans			(1,493	)			(2,165	)			(3,118	)			(3,781	)			(1,520	)
Net PPP loans			49,408				66,736				94,054				131,321				72,185
Traditional loans, gross			419,638				355,636				328,633				307,304				271,184
Net deferred (fees)/expenses, traditional loans			(422	)			(846	)			(688	)			(850	)			(782	)
Allowance for loan and lease losses			(6,452	)			(5,633	)			(5,500	)			(5,500	)			(4,900	)
Net traditional loans			412,764				349,157				322,445				300,954				265,502
Premises and equipment, net			18,830				12,939				13,019				13,093				13,155
Accrued interest receivable			2,756				2,334				2,080				2,444				1,886
Bank-owned life insurance			5,042				5,015				4,989				4,963				4,937
Other assets			1,450				2,086				3,241				5,839				2,119
TOTAL ASSETS		$	651,177			$	551,885			$	531,992			$	551,120			$	435,792
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits		$	464,050			$	390,138			$	334,620			$	272,288			$	235,172
Interest-bearing demand deposits			11,071				12,809				15,979				15,487				12,576
Savings and money market deposits			93,937				66,444				89,223				107,202				83,399
Time deposits			18,860				19,678				27,647				50,207				50,999
Total deposits			587,918				489,069				467,469				445,184				382,146
Accrued interest payable			36				36				41				54				50
Short-term borrowings			-				-				4,735				34,133				-
Long-term FHLB borrowings			4,000				4,000				4,000				4,000				4,000
Accounts payable and other liabilities			294				2,804				1,589				18,828				1,566
TOTAL LIABILITIES			592,248				495,909				477,834				502,199				387,762
Common stock			43				43				43				43				43
Additional paid-in capital			38,748				38,748				38,748				38,668				38,518
Retained earnings			19,809				17,185				13,786				10,722				8,718
Accumulated other comprehensive (loss) gain			329				-				1,581				(512	)			751
TOTAL STOCKHOLDERS' EQUITY			58,929				55,976				54,158				48,921				48,030
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	651,177			$	551,885			$	531,992			$	551,120			$	435,792

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

						Three Months Ended																Twelve Months Ended
($000s, except per share data)		12/31/2021				9/30/2021				6/30/2021				3/31/2021				12/31/2020				12/31/2021				12/31/2020
Interest and dividend income
Interest and fees on traditional loans		$	4,426			$	3,498			$	3,298			$	3,005			$	2,792			$	14,227			$	10,470
Interest and fees on PPP loans			821				1,152				1,259				986				1,027				4,218				2,069
Investment securities			876				614				647				533				411				2,670				1,502
Dividends on bank stocks			19				17				29				26				15				91				62
Other							5				3				3				3				11				108
Total interest income		$	6,142				5,286				5,236				4,553				4,248				21,217				14,211
Interest expense
Deposits			189				192				200				174				187				755				955
FHLB & Fed borrowings			20				17				33				31				18				101				87
Total interest expense			209				209				233				205				205				856				1,042
Net interest income			5,933				5,077				5,003				4,348				4,043				20,361				13,169
Provision for loan and lease losses			837				149				5				605				782				1,596				2,147
Net interest income after provision for loan and lease losses			5,096				4,928				4,998				3,743				3,261				18,765				11,022
Noninterest income
Customer service and other fees			264				250				353				206				135				1,073				422
Other income			118				118				114				114				115				464				448
Gain on sale of loan			-				-				-				-				84				-				84
Gain on sale of securities			278				1,392				462				48				316				2,180				1,476
Total noninterest income			660				1,760				929				368				650				3,717				2,430
Noninterest expense
Employee compensation and benefits			1,189				1,279				1,085				811				891				4,364				3,576
Occupancy			174				175				165				155				106				669				420
Professional fees			115				92				65				56				34				328				163
Other general and administrative			665				695				603				484				383				2,447				1,619
Total noninterest expense			2,143				2,241				1,918				1,506				1,414				7,808				5,778
Net Income Before Taxes		$	3,613			$	4,447			$	4,009			$	2,605			$	2,497			$	14,674			$	7,674
Income Tax Expense			990				1,048				945				601				649				3,584				1,740
Net Income		$	2,623			$	3,399			$	3,064			$	2,004			$	1,848			$	11,090			$	5,934
Income Per Share			0.61			$	0.79			$	0.71			$	0.47			$	0.43			$	2.58			$	1.42
Tangible Book Value Per Share			13.70			$	13.02			$	12.60			$	11.40			$	11.23			$	13.70			$	11.23
WA Shares outstanding			4,299,953				4,299,953				4,298,634				4,291,286				4,276,953				4,297,216				4,184,786
Pre-Tax Pre-Provision Income			4,450			$	4,596			$	4,014			$	3,210			$	3,279			$	16,270			$	9,821
Net Interest Margin			4.05	%			3.92	%			3.88	%			3.79	%			4.04	%			3.92	%			3.74	%
Cost of Funds			0.15	%			0.17	%			0.19	%			0.19	%			0.22	%			0.17	%			0.32	%
Efficiency Ratio			33.94	%			41.16	%			35.06	%			32.26	%			32.94	%			35.66	%			41.16	%
Return on Average Assets			1.74	%			2.51	%			2.26	%			1.62	%			1.76	%			2.04	%			1.63	%
Return on Average Equity			18.26	%			24.69	%			23.78	%			16.54	%			15.73	%			20.84	%			13.51	%
Community Bank Leverage Ratio (CBLR)			9.5	%			10.3	%			9.6	%			10.1	%			11.3	%			9.5	%			11.3	%
Asset Quality:
Non-performing loans to gross loans			1.58	%			1.89	%			2.07	%			0.31	%			0.36	%
Non-performing assets to total assets			1.02	%			1.22	%			1.28	%			0.17	%			0.22	%
Allowance for loan losses to gross traditional loans			1.54	%			1.58	%			1.67	%			1.79	%			1.81	%
Criticized loans/assets:
Special mention			17,745			$	7,734			$	7,018			$	6,665			$	7,730
Substandard: Accruing			3,766				4,729				4,772				10,666				10,709
Substandard: Nonaccrual			6,630				6,710				6,796				955				970
Doubtful			-				-				-				-				-
Total criticized loans			28,141			$	19,173			$	18,586			$	18,286			$	19,409
Other real estate owned			-				-				-				-				-
Investment securities			-				-				-				-				-
Total criticized assets			28,141			$	19,173			$	18,586			$	18,286			$	19,409
Criticized assets to total assets			4.32	%			3.47	%			3.49	%			3.32	%			4.45	%

SOURCE: Solera National Bancorp, Inc.

View source version on accesswire.com:
https://www.accesswire.com/687195/Solera-National-Bancorp-Announces-Fourth-Quarter-2021-Financial-Results

FAQ

What were Solera National Bancorp's earnings results for 2021?

Solera National Bancorp reported a net income of $11.1 million for 2021, an 89% increase year-over-year.

What is the stock symbol for Solera National Bancorp?

The stock symbol for Solera National Bancorp is SLRK.

How much did traditional gross loans increase for Solera National Bancorp?

Traditional gross loans increased by 55% to $419.6 million for the year ended December 31, 2021.

What was the efficiency ratio for Solera National Bancorp in 2021?

The efficiency ratio improved to 35.66% for the year ended December 31, 2021.

What was the change in noninterest-bearing deposits for Solera National Bancorp?

Noninterest-bearing deposits rose 97% year-over-year, reaching $464.1 million.