Solera National Bancorp, Inc.: Solera National Bancorp Announces Fourth Quarter 2024 Financial Results

Q4 2024 pre-tax and pre-provision income of $6.8 million. 2 ^nd best ever!

Net income of $5.3 million ($1.24 per share). 2 ^nd best ever!

LAKEWOOD, CO / ACCESS Newswire / January 24, 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 December 31, 2024. For the fourth quarter of 2024, net income was $5.3 million ($1.24 per share). Q4 2024 net interest income of $10.3 million increased $1.6 million or 19% from Q4 2023.

4Q24 Financial Highlights

• The Company had a pre-tax and pre-provision income of $6.8 million. 20% or $1.1 million increase from Q4 24.

• Net income of $5.3 million ($1.24 per share).

• $18 million decrease in special mention assets.

• Return on assets was 1.82%.

• Return on equity was 23.86%.

• Efficiency ratio was 41.47%.

Steve Snailum, COO, commented: "Solera delivers a tremendous end to a remarkable year! The bank is operating at a high level by expertly balancing efficiency and security. The team has been working hard to continue to leverage technology and expertise to deliver robust, secure, and expedient services to our customers. It is a great time to be a Solera employee and customer!"

Jay Hansen, Chief Financial Officer, commented: "Our goal is to get to a 10% Tier 1 capital ratio. We ended 2024 at 9.55% (point in time vs quarterly average), but could have sold $20M in securities to gain another 20 BPS on our ratio. Those securities will mature in March of 2025 and would have taken a loss of over $100K. We chose NOT to sell those securities because we don't sell securities for losses unless a business opportunity presents itself. We will get those 20 BPS in March 2025."

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 [phone]

FINANCIAL TABLES FOLLOW

SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(unaudited)

($000s)		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023
ASSETS
Cash and due from banks		$	2,329			$	2,193			$	2,241			$	2,095			$	2,734
Federal funds sold			800				400				-				-				-
Interest-bearing deposits with banks			148				595				844				1,079				2,582
Investment securities, available-for-sale			322,375				317,180				183,311				185,120				183,579
Investment securities, held-to-maturity			-				-				200,457				200,575				200,825
FHLB and Federal Reserve Bank stocks, at cost			7,457				3,204				10,959				7,952				12,225
Paycheck Protection Program (PPP) loans, gross			20				35				50				65				79
Traditional loans, gross			792,733				797,516				792,739				820,936				787,280
Allowance for loan and lease losses			(10,913	)			(10,912	)			(10,810	)			(10,808	)			(9,607	)
Net traditional loans			781,820				786,604				781,929				810,128				777,672
Premises and equipment, net			33,476				32,289				30,625				29,448				28,173
Accrued interest receivable			7,750				6,940				7,808				7,807				7,272
Bank-owned life insurance			5,127				5,095				5,063				5,033				5,002
Other assets			10,544				8,734				8,325				8,607				6,547
TOTAL ASSETS		$	1,171,846			$	1,163,269			$	1,231,612			$	1,257,909			$	1,226,690
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits		$	485,332			$	497,661			$	503,819			$	508,615			$	511,616
Interest-bearing demand deposits			54,804				64,606				62,905				53,514				48,122
Savings and money market deposits			100,987				103,118				102,892				255,655				169,328
Time deposits			294,337				353,405				272,744				240,047				241,149
Total deposits			935,460				1,018,790				942,360				1,057,831				970,215
Accrued interest payable			2,587				2,618				2,104				1,347				2,677
Short-term borrowings			106,267				13,300				164,613				79,104				138,077
Long-term FHLB borrowings			34,000				34,000				34,000				34,000				34,000
Accounts payable and other liabilities			4,576				5,395				3,961				4,659				2,181
TOTAL LIABILITIES			1,082,891				1,074,104				1,147,038				1,176,941				1,147,150
Common stock			43				43				43				43				43
Additional paid-in capital			38,748				38,748				38,778				38,763				38,748
Retained earnings			72,455				67,163				61,667				57,440				54,420
Accumulated other comprehensive (loss) gain			(22,291	)			(16,789	)			(15,914	)			(15,278	)			(13,671	)
TOTAL STOCKHOLDERS' EQUITY			88,955				89,165				84,574				80,968				79,540
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,171,846			$	1,163,269			$	1,231,612			$	1,257,909			$	1,226,690

SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended
($000s, except per share data)		12/31/2024				9/30/2024				6/30/2024				3/31/2024				12/31/2023
Interest and dividend income
Interest and fees on traditional loans		$	13,615			$	13,854			$	13,270			$	13,277			$	12,425
Interest and fees on PPP loans			-				-				-				-				-
Investment securities			3,297				3,544				3,721				3,693				3,704
Dividends on bank stocks			131				160				249				224				159
Other			13				19				22				30				88
Total interest income		$	17,056			$	17,577			$	17,262			$	17,224			$	16,376
Interest expense
Deposits			5,564				6,312				5,285				5,833				6,066
FHLB & Fed borrowings			1,223				1,332				2,831				2,200				1,662
Total interest expense			6,787				7,644				8,116				8,033				7,728
Net interest income			10,269				9,933				9,146				9,191				8,648
Provision for loan and lease losses			6				105				4				1,203				203
Net interest income after provision for loan and lease losses			10,263				9,828				9,142				7,988				8,445
Noninterest income
Customer service and other fees			470				389				468				443				528
Other income			954				1,138				738				616				617
Gain on sale of securities			-				858				-				60				68
Total noninterest income			1,424				2,385				1,206				1,119				1,213
Noninterest expense
Employee compensation and benefits			2,611				2,472				2,514				2,418				2,046
Occupancy			492				393				387				401				342
Professional fees			309				122				75				495				383
Other general and administrative			1,437				1,423				1,582				1,656				1,378
Total noninterest expense			4,849				4,410				4,558				4,970				4,149
Net Income Before Taxes		$	6,838			$	7,803			$	5,790			$	4,137			$	5,509
Income Tax Expense			1,526				2,294				1,564				1,118				1,965
Net Income		$	5,312			$	5,509			$	4,226			$	3,019			$	3,544
Income Per Share		$	1.24			$	1.28			$	0.98			$	0.70			$	0.82
Tangible Book Value Per Share		$	20.69			$	20.74			$	19.67			$	18.83			$	18.50
WA Shares outstanding			4,299,953				4,299,953				4,299,953				4,299,953				4,299,953
Pre-Tax Pre-Provision Income		$	6,844			$	7,908			$	5,794			$	5,340			$	5,712
Net Interest Margin			3.81	%			3.67	%			3.39	%			3.40	%			3.32	%
Cost of Funds			2.51	%			2.72	%			2.80	%			2.77	%			2.72	%
Efficiency Ratio			41.47	%			38.48	%			44.03	%			48.49	%			42.37	%
Return on Average Assets			1.82	%			1.84	%			1.36	%			0.97	%			1.18	%
Return on Average Equity			23.86	%			25.37	%			20.42	%			15.05	%			19.58	%
Leverage Ratio			9.5	%			9.1	%			8.2	%			7.7	%			7.6	%
Asset Quality:
Non-performing loans to gross loans			0.52	%			0.65	%			0.48	%			0.53	%			0.66	%
Non-performing assets to total assets			0.35	%			0.45	%			0.31	%			0.34	%			0.43	%
Allowance for loan losses to gross traditional loans			1.38	%			1.37	%			1.36	%			1.32	%			1.21	%
* Not meaningful due to the insignificant amount of non-performing loans.
Criticized loans/assets:
Special mention		$	10,730			$	29,145			$	25,244			$	35,997			$	9,688
Substandard: Accruing			14,911				22,410				23,030				19,108				1,685
Substandard: Nonaccrual			4,142				5,180				3,784				4,332				5,223
Doubtful			-				-				-				-				-
Total criticized loans		$	29,782			$	56,735			$	52,058			$	59,437			$	16,596
Other real estate owned			-				-				-				-				-
Investment securities			-				-				-				-				-
Total criticized assets		$	29,782			$	56,735			$	52,058			$	59,437			$	16,596
Criticized assets to total assets			2.54	%			4.88	%			4.23	%			4.73	%			1.35	%

SOURCE: Solera National Bancorp, Inc.

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