Solera National Bancorp Announces First Quarter 2025 Financial Results

Rhea-AI Summary

Solera National Bancorp (OTC PINK:SLRK) reported strong Q1 2025 financial results, with net income of $4.6 million ($1.08 per share), marking a 54% increase from Q1 2024. The bank achieved its third-best quarter with pre-tax and pre-provision income of $6.4 million, up 19% year-over-year.

Key performance metrics showed significant improvements:

• Net interest margin increased 53 bps to 3.93%
• Cost of funds decreased to 2.49%
• Return on assets rose to 1.62%
• Return on equity improved to 20.64%
• Efficiency ratio enhanced to 44.31%

The bank reached a Tier 1 capital ratio of 10.4%, exceeding its 10% goal, and plans to leverage high treasury yields to improve investment returns.

Positive

• Net income increased 54% YoY to $4.6 million ($1.08 per share)
• Pre-tax and pre-provision income grew 19% to $6.4 million
• Net interest margin improved by 53 basis points to 3.93%
• Cost of funds decreased by 28 basis points to 2.49%
• Return on equity increased significantly to 20.64%
• Tier 1 capital ratio exceeded target at 10.4%

Negative

• None.

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.
Criticized loans/assets:
Special mention		$	11,103			$	10,730			$	29,145			$	25,244			$	35,997
Substandard: Accruing			19,641				14,911				22,410				23,030				19,108
Substandard: Nonaccrual			3,251				4,142				5,180				3,784				4,332
Doubtful			-				-				-				-				-
Total criticized loans		$	33,995			$	29,782			$	56,735			$	52,058			$	59,437
Other real estate owned			-				-				-				-				-
Investment securities			-				-				-				-				-
Total criticized assets		$	33,995			$	29,782			$	56,735			$	52,058			$	59,437
Criticized assets to total assets			3.06	%			2.55	%			4.88	%			4.23	%			4.73	%

SOURCE: Solera National Bank

View the original press release on ACCESS Newswire

FAQ

What was Solera National Bancorp's (SLRK) earnings per share in Q1 2025?

Solera National Bancorp reported earnings of $1.08 per share in Q1 2025.

How much did SLRK's net income grow compared to Q1 2024?

SLRK's net income grew by $1.6 million or 54% compared to Q1 2024, reaching $4.6 million.

What is SLRK's current net interest margin and how has it changed?

SLRK's net interest margin is 3.93%, improving by 53 basis points compared to Q1 2024.

What is Solera National Bancorp's (SLRK) current Tier 1 capital ratio?

SLRK's Tier 1 capital ratio is 10.4%, exceeding their goal of 10%.

How efficient is SLRK's operation based on their Q1 2025 results?

SLRK reported an efficiency ratio of 44.31%, showing a 418 basis points improvement from Q1 2024.