Q2 2024 pre-tax and pre-provision income of $5.8 million.
Net income of $4.2 million (0.98 per share).
American Banker recognizes Solera National Bank as a best-performing bank, #3.
LAKEWOOD, CO / ACCESSWIRE / July 22, 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 June 30, 2024. For the second quarter of 2024, net income was $4.2 million ($0.98 per share). Q2 2024 net interest income of $9.2 million increased $0.7 million or 9% from Q2 2023.
2Q24 Financial Highlights
The Company had a pre-tax and pre-provision income of $5.8 million. 10% increase from Q1 24 and a 12% increase from Q2 23.
Total interest income of $17.3 million increased $2.7 million or 19% from Q2 2023.
Return on assets was 1.36%, up 40% from Q1 24.
Return on equity was 20.42%, up 36% from Q1 24.
Efficiency ratio was 44.03%.
Michael Quagliano, Executive Chairman of the Board, commented: "I have never been more encouraged by Solera National Banks future and each of the staff members are proficient in his or her job! Solera had just over $16,000,000 in total capital when I took over, and now, 10 years later, we have $111,000,000 in total capital. Most of the increase came from organic earnings."
Steve Snailum, COO, commented: "Solera continues to make strategic technological strides. In Q2, we launched our updated website, which more closely aligns with our customer commitment and capabilities. In Q3, we will launch an upgraded customer interaction platform that will provide customers and partners with an omnichannel experience. We have been and will remain focused on innovation that enhances customer experience, operational efficiency, and security."
Jay Hansen, Chief Financial Officer, commented: "American Banker has recognized Solera National Bank again in their peer group comparison for best publicly traded banks in the nation for under $2 billion in assets. The ranking is based on data from year-end 2023 and uses the institutions' three-year average return on average equity to determine the ranking. For 2023, we were ranked the 3rd best bank, up one position from the previous year. Our entire team is very proud of this achievement."
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)
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
ASSETS
Cash and due from banks
$
2,241
$
2,095
$
2,734
$
2,156
$
1,657
Interest-bearing deposits with banks
844
1,079
2,582
1,651
1,528
Investment securities, available-for-sale
183,313
185,120
183,579
169,673
173,552
Investment securities, held-to-maturity
200,457
200,575
200,825
199,875
204,900
FHLB and Federal Reserve Bank stocks, at cost
10,959
7,952
12,225
7,516
9,043
Paycheck Protection Program (PPP) loans, gross
50
65
79
86
111
Traditional loans, gross
792,739
820,936
787,280
746,198
745,666
Allowance for loan and lease losses
(10,810
)
(10,808
)
(9,607
)
(9,405
)
(9,404
)
Net traditional loans
781,928
810,128
777,672
736,793
736,262
Premises and equipment, net
30,625
29,448
28,173
28,918
27,625
Accrued interest receivable
7,808
7,807
7,272
7,232
6,557
Bank-owned life insurance
5,063
5,033
5,002
4,972
4,944
Other assets
8,325
8,607
6,547
12,611
8,952
TOTAL ASSETS
$
1,231,612
$
1,257,909
$
1,226,690
$
1,171,483
$
1,175,131
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits
$
503,819
$
508,615
$
511,616
$
509,382
$
539,522
Interest-bearing demand deposits
62,905
53,514
48,122
46,153
42,825
Savings and money market deposits
102,892
255,655
169,328
272,948
219,834
Time deposits
272,744
240,047
241,149
232,728
130,716
Total deposits
942,360
1,057,831
970,215
1,061,211
932,897
Accrued interest payable
2,104
1,347
2,677
1,042
150
Short-term borrowings
164,613
79,104
138,077
7,100
137,193
Long-term FHLB borrowings
34,000
34,000
34,000
34,000
34,000
Accounts payable and other liabilities
3,961
4,659
2,181
2,860
2,786
TOTAL LIABILITIES
1,147,038
1,176,941
1,147,150
1,106,213
1,107,026
Common stock
43
43
43
43
43
Additional paid-in capital
38,778
38,763
38,748
38,748
38,748
Retained earnings
61,667
57,440
54,420
50,877
46,240
Accumulated other comprehensive (loss) gain
(15,914
)
(15,278
)
(13,671
)
(24,398
)
(16,926
)
TOTAL STOCKHOLDERS' EQUITY
84,574
80,968
79,540
65,270
68,105
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
1,231,612
$
1,257,909
$
1,226,690
$
1,171,483
$
1,175,131
SOLERA NATIONAL BANCORP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended
($000s, except per share data)
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Interest and dividend income
Interest and fees on traditional loans
$
13,270
$
13,277
$
12,425
$
11,862
$
10,684
Interest and fees on PPP loans
-
-
-
-
-
Investment securities
3,721
3,693
3,704
3,602
3,679
Dividends on bank stocks
249
224
159
163
163
Other
22
30
88
59
23
Total interest income
$
17,262
$
17,224
$
16,376
$
15,686
$
14,549
Interest expense
Deposits
5,285
5,833
6,066
5,680
4,307
FHLB & Fed borrowings
2,831
2,200
1,662
1,497
1,819
Total interest expense
8,116
8,033
7,728
7,177
6,126
Net interest income
9,146
9,191
8,648
8,509
8,423
Provision for loan and lease losses
4
1,203
203
9
559
Net interest income after provision for loan and lease losses
9,142
7,988
8,445
8,500
7,864
Noninterest income
Customer service and other fees
469
443
528
372
417
Other income
738
616
617
822
972
Gain on sale of loan
(1
)
-
-
-
-
Gain on sale of securities
-
60
68
-
-
Total noninterest income
1,206
1,119
1,213
1,194
1,389
Noninterest expense
Employee compensation and benefits
2,514
2,418
2,046
1,957
2,101
Occupancy
387
401
342
341
336
Professional fees
75
495
383
148
96
Other general and administrative
1,582
1,656
1,378
1,362
2,124
Total noninterest expense
4,558
4,970
4,149
3,808
4,657
Net Income Before Taxes
$
5,790
$
4,137
$
5,509
$
5,886
$
4,596
Income Tax Expense
1,564
1,118
1,965
985
968
Net Income
$
4,226
$
3,019
$
3,544
$
4,901
$
3,628
Income Per Share
$
0.98
$
0.70
$
0.82
$
1.14
$
0.84
Tangible Book Value Per Share
$
19.67
$
18.83
$
18.50
$
15.18
$
15.84
WA Shares outstanding
4,299,953
4,299,953
4,299,953
4,299,953
4,299,953
Pre-Tax Pre-Provision Income
$
5,794
$
5,340
$
5,712
$
5,895
$
5,155
Net Interest Margin
3.39
%
3.40
%
3.32
%
3.29
%
3.37
%
Cost of Funds
2.80
%
2.77
%
2.72
%
2.54
%
2.24
%
Efficiency Ratio
44.03
%
48.49
%
42.37
%
39.25
%
47.46
%
Return on Average Assets
1.36
%
0.97
%
1.18
%
1.67
%
1.25
%
Return on Average Equity
20.42
%
15.05
%
19.58
%
29.40
%
21.96
%
Leverage Ratio
8.2
%
7.7
%
7.6
%
7.6
%
7.3
%
Asset Quality:
Non-performing loans to gross loans
0.48
%
0.53
%
0.66
%
0.87
%
1.07
%
Non-performing assets to total assets
0.31
%
0.34
%
0.43
%
0.55
%
0.68
%
Allowance for loan losses to gross traditional loans
1.36
%
1.32
%
1.21
%
1.24
%
1.24
%
* Not meaningful due to the insignificant amount of non-performing loans.
