Solera National Bancorp Announces Fourth Quarter Results

Rhea-AI Summary

Solera National Bancorp, Inc. (OTC PINK:SLRK) reported remarkable financial results for 2022, achieving a net income of $18.2 million, up from $11.1 million in 2021. The fourth quarter net income stood at $4.98 million. Assets surged to $994.88 million, reflecting a significant increase from $651.17 million in the previous year. Earnings per share rose by 64.7% to $4.25, while the efficiency ratio improved to 37.5%. The return on equity also increased to 33.29% from 20.84% in 2021. The company continues to focus on enhancing operational efficiency and security.

Positive

• Net income for 2022 reached $18.2 million, an increase of $7.1 million from 2021.
• Assets grew from $651.17 million to $994.88 million, a substantial increase.
• Earnings per share increased by 64.7% to $4.25.
• Return on equity rose to 33.29%, up from 20.84% the previous year.
• Efficiency ratio improved to 37.5%, indicating better cost management.

Negative

• None.

Year to Date Net Income of $18.2 million

LAKEWOOD, CO / ACCESSWIRE / January 31, 2023 / 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 and 12 months ended December 31, 2022. For the fourth quarter of 2022, net income was $4.98 million for the quarter and $18.16 million for the year as of December 31, 2022.

2022 Financial Highlights

The Company experienced record earnings in 2022. Net income for the year was $18.2 million compared to $11.1 million for 2021. The company had tremendous growth in 2022 growing its assets from $651.17 million as of December 31, 2021 to $994.88 million as of December 31, 2022.

• Income per share increased 64.7% to $4.25 per share as of December 31, 2022, from $2.58 per share for 2021.
• Efficiency ratio for 2022 finished at 37.5%.
• Return on equity increased to 33.29% from the prior year of 20.84%.
• Pre-tax Pre-Prevision income was $23.56 million for 2022 which was a $7.29 Million increase from 2021.

Michael Quagliano, Executive Chairman of the Board, commented: "We are all sad to announce our friend and fellow Solera Bank warrior (Cheri Walz EVP/CFO) has taken up with a local tribe 10 min from her home. I am certain it was a hard decision, but we are happy you're back home with your loved ones. You did great things for this Bank. You will be missed."

Solera has completed a successful search for a new CFO, and we are very excited about the wealth of knowledge and experience that our candidate will bring to the bank. Specifics regarding the position will be included in a separate press release once the new CFO officially assumes their position.

Steve Snailum, COO, commented: "We have worked extremely hard to maximize financial performance and prepare for the future. Our commitment to our customers and shareholders remains a dominate cultural theme for our bank. The employees of the bank have worked tirelessly to execute their duties with skill, poise and enthusiasm. Operationally, Solera is continuing to stay on the cutting edge of efficiency and security through vigilant process management and quality control."

Kreighton Reed, commented: "Our growth in 2022 was unparalleled in the banks history. After more than 10 years of a lower interest rate environment Solera was able to take advantage of the higher yield environment and add a mix of higher yielding assets that will reward shareholders for years to come. Our efficiency ratio and our return on equity are strong indicators that we put the shareholder first."

Tim Pester, Controller, commented: "Solera National Bank recorded another stellar quarter, and an even better 2022. With record highs in year end net income and great returns on both equity and assets. This is thanks to the hard work from an incredible team. The bank was able to keep cost of funds low in spite of a rising rate environment thanks to the large portfolio of non-interest bearing deposits. Solera is continuing to push the growth of non-interest and other stable deposits to help fund growth in loans and investments. With these deposit tools, Solera is setting itself up to be profitable now and in the future"

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: Steve Snailum, COO (303) 209-8600

FINANCIAL TABLES FOLLOW

SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(unaudited)
($000s)	12/31/2022				9/30/2022				6/30/2022				3/31/2022				12/31/2021
ASSETS
Cash and due from banks	$	3,490			$	2,683			$	4,714			$	4,025			$	4,124
Federal funds sold		-				-				-				31,000				12,000
Interest-bearing deposits with banks		1,499				2,379				1,788				2,459				1,251
Investment securities, available-for-sale		165,775				154,044				171,151				141,175				130,199
Investment securities, held-to-maturity		205,450				205,475				125,890				51,965				10,500
FHLB and Federal Reserve Bank stocks, at cost		3,954				3,843				5,400				1,626				2,853
Paycheck Protection Program (PPP) loans, gross		578				589				10,709				37,951				50,901
Net deferred (fees)/expenses, PPP loans		(6	)			(7	)			(271	)			(1,026	)			(1,493	)
Net PPP loans		572				582				10,438				36,925				49,408
Traditional loans, gross		578,012				539,568				461,447				433,506				419,638
Net deferred (fees)/expenses, traditional loans		(391	)			(417	)			(433	)			(444	)			(422	)
Allowance for loan and lease losses		(8,005	)			(8,004	)			(7,153	)			(7,153	)			(6,452	)
Net traditional loans		569,616				531,147				453,861				425,909				412,764
Premises and equipment, net		25,266				25,040				14,104				14,195				18,830
Accrued interest receivable		5,825				5,833				4,352				3,689				2,756
Bank-owned life insurance		4,891				4,864				5,094				5,068				5,042
Other assets		8,546				11,003				19,410				3,910				1,450
TOTAL ASSETS		994,884			$	946,893			$	816,202			$	721,946			$	651,177
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits	$	551,990			$	543,260			$	543,956			$	515,929			$	464,050
Interest-bearing demand deposits		40,853				33,236				10,392				10,100				11,071
Savings and money market deposits		202,542				170,148				113,819				117,799				93,937
Time deposits		84,398				108,520				17,735				18,743				18,860
Total deposits		879,783				855,164				685,902				662,571				587,918
Accrued interest payable		438				238				124				33				36
Short-term borrowings		52,175				37,223				72,634				-				-
Long-term FHLB borrowings		4,000				4,000				4,000				4,000				4,000
Accounts payable and other liabilities		759				628				1,166				1,102				294
TOTAL LIABILITIES		937,155				897,253				763,826				667,706				592,248
Common stock		43				43				43				43				43
Additional paid-in capital		38,748				38,748				38,748				38,748				38,748
Retained earnings		37,978				32,994				28,094				23,008				19,809
Accumulated other comprehensive (loss) gain		(19,040	)			(22,145	)			(14,509	)			(7,559	)			329
TOTAL STOCKHOLDERS' EQUITY		57,729				49,640				52,376				54,240				58,929
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		994,884			$	946,893			$	816,202			$	721,946			$	651,177

	SOLERA NATIONAL BANCORP, INC.
	CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
				Three Months Ended												Twelve Months Ended
($000s, except per share data)	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021			12/31/2022			12/31/2021
Interest and dividend income
Interest and fees on traditional loans	$	7,678		$	6,140		$	4,935		$	4,561		$	4,426		$	23,314		$	14,227
Interest and fees on PPP loans		2			277			824			581			821			1,684			4,218
Investment securities		3,500			3,130			2,215			1,201			876			10,046			2,670
Dividends on bank stocks		64			68			51			17			19			200			91
Other		18			18			2			-						38			11
Total interest income	$	11,262			9,633			8,027			6,360		$	6,142			35,282			21,217
Interest expense
Deposits		2,322			1,062			300			221			189			3,905			755
FHLB & Fed borrowings		480			327			159			17			20			983			101
Total interest expense		2,802			1,389			459			238			209			4,888			856
Net interest income		8,460			8,244			7,568			6,122			5,933			30,394			20,361
Provision for loan and lease losses		5			859			10			702			837			1,576			1,596
Net interest income after provision for loan and lease losses		8,455			7,385			7,558			5,420			5,096			28,818			18,765
Noninterest income
Customer service and other fees		303			257			321			300			264			1,181			1,073
Other income		726			551			183			262			118			1,722			464
Gain on sale of loan		-			-			-			943			-			943			-
Gain on sale of securities		96			478			1,179						278			1,753			2,180
Total noninterest income		1,125			1,286			1,683			1,505			660			5,599			3,717
Noninterest expense
Employee compensation and benefits		1,949			1,690			1,800			1,651			1,189			7,090			4,364
Occupancy		310			198			177			215			174			900			669
Professional fees		110			65			119			101			115			395			328
Other general and administrative		1,406			974			825			841			665			4,046			2,447
Total noninterest expense		3,775			2,927			2,921			2,808			2,143			12,431			7,808
Net Income Before Taxes	$	5,805		$	5,744		$	6,320		$	4,117		$	3,613		$	21,986		$	14,674
Income Tax Expense		821			843			1,235			919			990			3,818			3,584
Net Income	$	4,984		$	4,901		$	5,085		$	3,198		$	2,623		$	18,168		$	11,090
Income Per Share		1.16		$	1.14		$	1.18		$	0.74		$	0.61		$	4.25		$	2.58
Tangible Book Value Per Share		13.43		$	11.54		$	12.18		$	12.61		$	13.73		$	13.43		$	13.70
WA Shares outstanding		4,299,953			4,299,953			4,299,953			4,299,953			4,297,216			4,276,953			4,297,216
Pre-Tax Pre-Provision Income		5,810		$	6,603		$	6,330		$	4,819		$	4,450		$	23,562		$	16,270
Net Interest Margin		3.97	%		4.18	%		3.81	%		4.05	%		3.92	%		4.04	%		3.92	%
Cost of Funds		1.21	%		0.66	%		0.25	%		0.15	%		0.15	%		0.62	%		0.17	%
Efficiency Ratio		39.78	%		32.34	%		36.19	%		42.01	%		33.94	%		37.33	%		35.66	%
Return on Average Assets		2.05	%		2.22	%		2.64	%		1.86	%		1.74	%		2.20	%		2.04	%
Return on Average Equity		37.14	%		38.43	%		38.16	%		22.61	%		18.26	%		33.29	%		20.84	%
Community Bank Leverage Ratio (CBLR)		7.9	%		8.1	%		8.4	%		8.9	%		11.3	%
Asset Quality:
Non-performing loans to gross loans		0.93	%		1.01	%		1.20	%		1.30	%		1.58	%
Non-performing assets to total assets		0.54	%		0.57	%		0.68	%		0.78	%		1.02	%
Allowance for loan losses to gross traditional loans		1.38	%		1.48	%		1.55	%		1.65	%		1.54	%
Criticized loans/assets:
Special mention		23,566		$	19,385		$	11,661		$	11,742		$	17,745
Substandard: Accruing		1,739			1,911			1,931			12,882			3,766
Substandard: Nonaccrual		5,364			5,431			5,530			5,631			6,629
Doubtful		-			-			-			-			-
Total criticized loans		30,669		$	26,727		$	19,122		$	30,255		$	28,140
Other real estate owned		-			-			-			-			-
Investment securities		-			-			-			-			-
Total criticized assets		30,669		$	26,727		$	19,122		$	30,255		$	28,140
Criticized assets to total assets		3.08	%		2.82	%		2.34	%		4.19	%		4.32	%

SOURCE: Solera National Bank

View source version on accesswire.com:
https://www.accesswire.com/737570/Solera-National-Bancorp-Announces-Fourth-Quarter-Results

FAQ

What were Solera National Bancorp's earnings for 2022?

Solera National Bancorp reported a net income of $18.2 million for the year ended December 31, 2022.

How did Solera National Bancorp's assets change in 2022?

The company's assets increased from $651.17 million at the end of 2021 to $994.88 million at the end of 2022.

What was the earnings per share for Solera National Bancorp in 2022?

The earnings per share for Solera National Bancorp in 2022 was $4.25, a 64.7% increase from the previous year.

What is the return on equity for Solera National Bancorp?

The return on equity for Solera National Bancorp increased to 33.29% for the year ended December 31, 2022.

What was the efficiency ratio for Solera National Bancorp in 2022?

The efficiency ratio for Solera National Bancorp improved to 37.5% in 2022.