Solera National Bancorp Announces Third Quarter 2024 Financial Results

Rhea-AI Summary

Solera National Bancorp (OTC PINK:SLRK) reported record-breaking financial results for Q3 2024. Net income reached $5.5 million ($1.28 per share), with pre-tax and pre-provision income hitting a new high of $7.9 million. The company saw significant improvements in key metrics:

- Net interest income increased 17% year-over-year to $9.9 million
- Total interest income rose 12% to $17.6 million
- Return on assets improved to 1.84%, up 36% from Q2 2024
- Return on equity reached 25.37%, a 24% increase from Q2 2024
- Efficiency ratio stood at 38.48%

The company also reported $933K in gains from the sale of securities and planes. Despite these positive results, total assets decreased by $68 million from Q2 2024.

Positive

• Record-breaking net income of $5.5 million ($1.28 per share) in Q3 2024
• Pre-tax and pre-provision income reached a new high of $7.9 million
• Net interest income increased 17% year-over-year to $9.9 million
• Total interest income rose 12% to $17.6 million
• Return on assets improved to 1.84%, up 36% from Q2 2024
• Return on equity reached 25.37%, a 24% increase from Q2 2024
• Efficiency ratio of 38.48% indicates strong operational performance
• $933K gains from the sale of securities and planes

Negative

• Total assets decreased by $68 million from Q2 2024

Q3 2024 pre-tax and pre-provision income of $7.9 million. A New Record!

Net income of $5.5 million ($1.28 per share). A New Record!

Decreased our assets by $68M (From Q2 2024).

LAKEWOOD, CO / ACCESSWIRE / October 17, 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 September 30, 2024. For the third quarter of 2024, net income was $5.5 million ($1.28 per share). Q3 2024 net interest income of $9.9 million increased $1.4 million or 17% from Q3 2023.

3Q24 Financial Highlights

• The Company had a pre-tax and pre-provision income of $7.9 million. 36% increase from Q2 24 and a 34% increase from Q3 23.

• Net income of $5.5 million ($1.28 per share).

• $933K gains on the sale of securities ($857K) & planes ($76K).

• Total interest income of $17.6 million increased $1.9 million or 12% from Q3 2023.

• Return on assets was 1.84%, up 36% from Q2 24.

• Return on equity was 25.37%, up 24% from Q2 24.

• Efficiency ratio was 38.48%.

Jordan Wright, Board Member, "For some time now, our board has talked about how, in order to be great, you have to be willing to do things a little differently than everyone else. This quarter, along with the many quarters that have preceded it, continues to show how that approach is playing out. Since I joined the board in 2021, I have never been more excited about our position in the market. When rates were low, Solera National Bank waited for the right opportunity to deploy capital. Over the last few years, we've found excellent opportunities to invest in, and we're running an extremely efficient shop. I'm so proud of this quarter and the incredible effort our team has put into the success of Solera National Bank for the last few years that made this quarter possible!"

Orren Adams, Director of Oversight and Compliance, "Having a fiscal quarter under my belt as the Director of Oversight and Compliance, I am excited to help the Bank navigate its strong financial tailwinds, direct best practices, and address complex banking regulations while working with the strong management team led by a focused Board of Directors."

Steve Snailum, COO, commented: "Solera delivers a fantastic quarter for all stakeholders! The magic of this place is at an all-time high, and the atmosphere of the bank is better than ever. We continue to operate with the customer as the guiding light. From launching an omnichannel customer service experience platform, to adding security features like ACH and Check Positive Pay, to introducing newly designed debit cards with enhanced features, Solera continues to demonstrate its commitment to excellence."

Jay Hansen, Chief Financial Officer, commented: "Solera took advantage of the market and sold several of our securities for gains, reclassed all of our investments to available for sale (AFS), increased our capital ratios, and increased our ALLL ratio. Our entire team is dedicated to the continued success of this organization and embraces the challenges the banking industry faces. The team is very proud of achieving an unprecedented milestone in quarterly income."

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)	9/30/24				6/30/24				3/31/24				12/31/23				9/30/23
ASSETS
Cash and due from banks	$	2,193			$	2,241			$	2,095			$	2,734			$	2,156
Interest-bearing deposits with banks		595				844				1,079				2,582				1,651
Investment securities, available-for-sale		317,182				183,313				185,120				183,579				169,673
Investment securities, held-to-maturity		-				200,457				200,575				200,825				199,875
FHLB and Federal Reserve Bank stocks, at cost		3,204				10,959				7,952				12,225				7,516
Paycheck Protection Program (PPP) loans, gross		35				50				65				79				86
Traditional loans, gross		797,516				792,739				820,936				787,280				746,198
Allowance for loan and lease losses		(10,912	)			(10,810	)			(10,808	)			(9,607	)			(9,405	)
Net traditional loans		786,603				781,928				810,128				777,672				736,793
Premises and equipment, net		32,289				30,625				29,448				28,173				28,918
Accrued interest receivable		6,940				7,808				7,807				7,272				7,232
Bank-owned life insurance		5,095				5,063				5,033				5,002				4,972
Other assets		8,734				8,325				8,607				6,547				12,611
TOTAL ASSETS	$	1,163,269			$	1,231,612			$	1,257,909			$	1,226,690			$	1,171,483
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits	$	497,661			$	503,819			$	508,615			$	511,616			$	509,382
Interest-bearing demand deposits		64,606				62,905				53,514				48,122				46,153
Savings and money market deposits		103,118				102,892				255,655				169,328				272,948
Time deposits		353,405				272,744				240,047				241,149				232,728
Total deposits		1,018,790				942,360				1,057,831				970,215				1,061,211
Accrued interest payable		2,618				2,104				1,347				2,677				1,042
Short-term borrowings		13,300				164,613				79,104				138,077				7,100
Long-term FHLB borrowings		34,000				34,000				34,000				34,000				34,000
Accounts payable and other liabilities		5,395				3,961				4,659				2,181				2,860
TOTAL LIABILITIES		1,074,104				1,147,038				1,176,941				1,147,150				1,106,213
Common stock		43				43				43				43				43
Additional paid-in capital		38,748				38,778				38,763				38,748				38,748
Retained earnings		67,163				61,667				57,440				54,420				50,877
Accumulated other comprehensive (loss) gain		(16,789	)			(15,914	)			(15,278	)			(13,671	)			(24,398	)
TOTAL STOCKHOLDERS' EQUITY		89,165				84,574				80,968				79,540				65,270
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,163,269			$	1,231,612			$	1,257,909			$	1,226,690			$	1,171,483

SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended
($000s, except per share data)	9/30/24				6/30/24				3/31/24				12/31/23				9/30/23
Interest and dividend income
Interest and fees on traditional loans	$	13,854			$	13,270			$	13,277			$	12,425			$	11,862
Interest and fees on PPP loans		-				-				-				-				-
Investment securities		3,544				3,721				3,693				3,704				3,602
Dividends on bank stocks		160				249				224				159				163
Other		19				22				30				88				59
Total interest income	$	17,577			$	17,262			$	17,224			$	16,376			$	15,686
Interest expense
Deposits		6,312				5,285				5,833				6,066				5,680
FHLB & Fed borrowings		1,332				2,831				2,200				1,662				1,497
Total interest expense		7,644				8,116				8,033				7,728				7,177
Net interest income		9,933				9,146				9,191				8,648				8,509
Provision for loan and lease losses		105				4				1,203				203				9
Net interest income after provision for loan and lease losses		9,828				9,142				7,988				8,445				8,500
Noninterest income
Customer service and other fees		389				468				443				528				372
Other income		1,138				738				616				617				822
Gain on sale of securities		858				-				60				68				-
Total noninterest income		2,385				1,206				1,119				1,213				1,194
Noninterest expense
Employee compensation and benefits		2,472				2,514				2,418				2,046				1,957
Occupancy		393				387				401				342				341
Professional fees		122				75				495				383				148
Other general and administrative		1,423				1,582				1,656				1,378				1,362
Total noninterest expense		4,410				4,558				4,970				4,149				3,808
Net Income Before Taxes	$	7,803			$	5,790			$	4,137			$	5,509			$	5,886
Income Tax Expense		2,294				1,564				1,118				1,965				985
Net Income	$	5,509			$	4,226			$	3,019			$	3,544			$	4,901
Income Per Share	$	1.28			$	0.98			$	0.70			$	0.82			$	1.14
Tangible Book Value Per Share	$	20.74			$	19.67			$	18.83			$	18.50			$	15.18
WA Shares outstanding		4,299,953				4,299,953				4,299,953				4,299,953				4,299,953
Pre-Tax Pre-Provision Income	$	7,908			$	5,794			$	5,340			$	5,712			$	5,895
Net Interest Margin		3.67	%			3.39	%			3.40	%			3.32	%			3.29	%
Cost of Funds		2.72	%			2.80	%			2.77	%			2.72	%			2.54	%
Efficiency Ratio		38.48	%			44.03	%			48.49	%			42.37	%			39.25	%
Return on Average Assets		1.84	%			1.36	%			0.97	%			1.18	%			1.67	%
Return on Average Equity		25.37	%			20.42	%			15.05	%			19.58	%			29.40	%
Leverage Ratio		9.1	%			8.2	%			7.7	%			7.6	%			7.6	%
Asset Quality:
Non-performing loans to gross loans		0.65	%			0.48	%			0.53	%			0.66	%			0.87	%
Non-performing assets to total assets		0.45	%			0.31	%			0.34	%			0.43	%			0.55	%
Allowance for loan losses to gross traditional loans		1.37	%			1.36	%			1.32	%			1.21	%			1.24	%
* Not meaningful due to the insignificant amount of non-performing loans.
Criticized loans/assets:
Special mention	$	29,145			$	25,244			$	35,997			$	9,688			$	26,006
Substandard: Accruing		22,410				23,030				19,108				1,685				1,695
Substandard: Nonaccrual		5,180				3,784				4,332				5,223				6,508
Doubtful		-				-				-				-				-
Total criticized loans	$	56,735			$	52,058			$	59,437			$	16,596			$	34,209
Other real estate owned		-				-				-				-				-
Investment securities		-				-				-				-				-
Total criticized assets	$	56,735			$	52,058			$	59,437			$	16,596			$	34,209
Criticized assets to total assets		4.88	%			4.23	%			4.73	%			1.35	%			2.91	%

SOURCE: Solera National Bank

View the original press release on accesswire.com

FAQ

What was Solera National Bancorp's (SLRK) net income for Q3 2024?

Solera National Bancorp (SLRK) reported a record net income of $5.5 million ($1.28 per share) for Q3 2024.

How much did Solera National Bancorp's (SLRK) net interest income increase in Q3 2024 compared to Q3 2023?

Solera National Bancorp's (SLRK) net interest income increased by $1.4 million or 17% in Q3 2024 compared to Q3 2023, reaching $9.9 million.

What was Solera National Bancorp's (SLRK) return on equity in Q3 2024?

Solera National Bancorp's (SLRK) return on equity was 25.37% in Q3 2024, up 24% from Q2 2024.

How did Solera National Bancorp's (SLRK) total assets change in Q3 2024?

Solera National Bancorp (SLRK) reported a decrease in total assets of $68 million from Q2 2024 to Q3 2024.