Solera National Bancorp Announces Second Quarter 2024 Financial Results

Rhea-AI Summary

Solera National Bancorp (OTC Pink:SLRK) reported strong Q2 2024 financial results, with net income of $4.2 million ($0.98 per share) and pre-tax and pre-provision income of $5.8 million. The company saw significant growth, with net interest income increasing 9% year-over-year to $9.2 million. Total interest income rose 19% to $17.3 million compared to Q2 2023. The bank's performance improved across key metrics, with return on assets at 1.36% and return on equity at 20.42%, both up significantly from Q1 2024. Solera National Bank was recognized by American Banker as the 3rd best-performing bank in its peer group for institutions under $2 billion in assets.

Positive

• Net income of $4.2 million ($0.98 per share) in Q2 2024
• Pre-tax and pre-provision income increased 12% year-over-year to $5.8 million
• Net interest income grew 9% year-over-year to $9.2 million
• Total interest income rose 19% year-over-year to $17.3 million
• Return on assets improved to 1.36%, up 40% from Q1 2024
• Return on equity increased to 20.42%, up 36% from Q1 2024
• Efficiency ratio of 44.03%
• Total capital increased from $16 million to $111 million over 10 years
• Ranked 3rd best bank by American Banker for institutions under $2 billion in assets

Negative

• None.

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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 3^rd 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.
Criticized loans/assets:
Special mention		$	25,244		$	35,997		$	9,688		$	26,006		$	29,164
Substandard: Accruing			23,030			19,108			1,685			1,695			1,720
Substandard: Nonaccrual			3,784			4,332			5,223			6,508			8,005
Doubtful			-			-			-			-			-
Total criticized loans		$	52,058		$	59,437		$	16,596		$	34,209		$	38,889
Other real estate owned			-			-			-			-			-
Investment securities			-			-			-			-			-
Total criticized assets		$	52,058		$	59,437		$	16,596		$	34,209		$	38,889
Criticized assets to total assets			4.23	%		4.73	%		1.35	%		2.91	%		3.31	%

SOURCE: Solera National Bancorp, Inc.

View the original press release on accesswire.com

FAQ

What was Solera National Bancorp's (SLRK) net income for Q2 2024?

Solera National Bancorp (SLRK) reported a net income of $4.2 million ($0.98 per share) for Q2 2024.

How much did Solera National Bancorp's (SLRK) net interest income increase in Q2 2024 compared to Q2 2023?

Solera National Bancorp's (SLRK) net interest income increased by $0.7 million or 9% in Q2 2024 compared to Q2 2023, reaching $9.2 million.

What was Solera National Bancorp's (SLRK) return on equity in Q2 2024?

Solera National Bancorp's (SLRK) return on equity was 20.42% in Q2 2024, up 36% from Q1 2024.

How did American Banker rank Solera National Bank (SLRK) in its peer group comparison?

American Banker ranked Solera National Bank (SLRK) as the 3rd best bank in its peer group comparison for publicly traded banks under $2 billion in assets, based on 2023 year-end data.