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!
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.
