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
