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.
