Year to Date Net Income of $13.1 million
LAKEWOOD, CO / ACCESSWIRE / October 25, 2022 / 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 and nine months ended September 30, 2022. For the third quarter of 2022, net income was $4.9 million and $13.1 million year to date as of September 30, 2022.
3Q22 Financial Highlights
(Comparison to 3Q21 unless otherwise noted)
The Company experienced another quarter of record pre-tax and pre-provision earnings of $6.6 million in the third quarter of 2022 compared to $4.6 million in the third quarter of 2021. Year to date pre-tax and pre-provision earnings through September 30, 2022, increased to $17.8 million, which is $5.9 million higher over the prior year.
- Net interest income of $8.2 million for the third quarter 2022 represents a 52% increase over the $5.1 million earned in the third quarter of 2021.
- Net interest margin increased to 4.18% as of September 30, 2022, from 3.81% in the first quarter of 2022.
- Noninterest-bearing deposits increased 39% or $153 million increase from September 30, 2021.
- The Company's efficiency ratio of 32.34% decreased from 36.19% from the second quarter 2022.
- Asset quality remained strong with a modest level of criticized assets of 2.82% of total assets and nonperforming assets of 0.57% of total assets as of September 30, 2022.
Michael Quagliano, Executive Chairman of the Board, commented: "Everyone at Solera is working hard for our shareholders. Our enthusiasm is infectious, and our unity is unwavering. I love my job at Solera National Bank, the community bank for all the States."
Cheri Walz, CFO, commented: "This was another excellent quarter for Solera. Our balance sheet management strategies have delivered stable deposits and strong commercial and investment growth. Not only were our financial results strong this quarter, the underlying drivers of increases in profitability should provide tailwinds into the future."
Kreighton Reed, commented: "To bolster our strong growth we added to our bench strength this quarter by deepening our C-Suite. Stephen Tippetts our Chief Technology Officer will run our software development team. Steve Snailum, a 16 year banking veteran, was named Chief Operations Officer and will help us to continue to build scaleable operational foundation for our rapidly growing organization."
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: Cheri Walz, EVP & CFO (720) 764-9090
FINANCIAL TABLES FOLLOW
SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
($000s) | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 9/30/2021 | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and due from banks | $ | 2,683 | $ | 4,714 | $ | 4,025 | $ | 4,124 | $ | 2,714 | |||||||||||
Federal funds sold | - | - | 31,000 | 12,000 | 15,000 | ||||||||||||||||
Interest-bearing deposits with banks | 2,379 | 1,788 | 2,459 | 1,251 | 1,267 | ||||||||||||||||
Investment securities, available-for-sale | 154,044 | 171,151 | 141,175 | 130,199 | 82,588 | ||||||||||||||||
Investment securities, held-to-maturity | 205,475 | 125,890 | 51,965 | 10,500 | 10,423 | ||||||||||||||||
FHLB and Federal Reserve Bank stocks, at cost | 3,843 | 5,400 | 1,626 | 2,853 | 1,626 | ||||||||||||||||
Paycheck Protection Program (PPP) loans, gross | 589 | 10,709 | 37,951 | 50,901 | 68,901 | ||||||||||||||||
Net deferred (fees)/expenses, PPP loans | (7 | ) | (271 | ) | (1,026 | ) | (1,493 | ) | (2,165 | ) | |||||||||||
Net PPP loans | 582 | 10,438 | 36,925 | 49,408 | 66,736 | ||||||||||||||||
Traditional loans, gross | 539,568 | 461,447 | 433,506 | 419,638 | 355,636 | ||||||||||||||||
Net deferred (fees)/expenses, traditional loans | (417 | ) | (433 | ) | (444 | ) | (422 | ) | (846 | ) | |||||||||||
Allowance for loan and lease losses | (8,004 | ) | (7,153 | ) | (7,153 | ) | (6,452 | ) | (5,633 | ) | |||||||||||
Net traditional loans | 531,147 | 453,861 | 425,909 | 412,764 | 349,157 | ||||||||||||||||
Premises and equipment, net | 25,040 | 14,104 | 14,195 | 18,830 | 12,939 | ||||||||||||||||
Accrued interest receivable | 5,833 | 4,352 | 3,689 | 2,756 | 2,334 | ||||||||||||||||
Bank-owned life insurance | 4,864 | 5,094 | 5,068 | 5,042 | 5,015 | ||||||||||||||||
Other assets | 11,003 | 19,410 | 3,910 | 1,450 | 2,086 | ||||||||||||||||
| TOTAL ASSETS | $ | 946,893 | $ | 816,202 | $ | 721,946 | $ | 651,177 | $ | 551,885 | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 543,260 | $ | 543,956 | $ | 515,929 | $ | 464,050 | $ | 390,138 | |||||||||||
Interest-bearing demand deposits | 33,236 | 10,392 | 10,100 | 11,071 | 12,809 | ||||||||||||||||
Savings and money market deposits | 170,148 | 113,819 | 117,799 | 93,937 | 66,444 | ||||||||||||||||
Time deposits | 108,520 | 17,735 | 18,743 | 18,860 | 19,678 | ||||||||||||||||
Total deposits | 855,164 | 685,902 | 662,571 | 587,918 | 489,069 | ||||||||||||||||
Accrued interest payable | 238 | 124 | 33 | 36 | 36 | ||||||||||||||||
Short-term borrowings | 37,223 | 72,634 | - | - | - | ||||||||||||||||
Long-term FHLB borrowings | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | ||||||||||||||||
Accounts payable and other liabilities | 628 | 1,166 | 1,102 | 294 | 2,804 | ||||||||||||||||
| TOTAL LIABILITIES | 897,253 | 763,826 | 667,706 | 592,248 | 495,909 | ||||||||||||||||
Common stock | 43 | 43 | 43 | 43 | 43 | ||||||||||||||||
Additional paid-in capital | 38,748 | 38,748 | 38,748 | 38,748 | 38,748 | ||||||||||||||||
Retained earnings | 32,994 | 28,094 | 23,008 | 19,809 | 17,185 | ||||||||||||||||
Accumulated other comprehensive (loss) gain | (22,145 | ) | (14,509 | ) | (7,559 | ) | 329 | - | |||||||||||||
| TOTAL STOCKHOLDERS' EQUITY | 49,640 | 52,376 | 54,240 | 58,929 | 55,976 | ||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 946,893 | $ | 816,202 | $ | 721,946 | $ | 651,177 | $ | 551,885 | |||||||||||
SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
($000s, except per share data) | 9/30/2022 | 6/30/2022 | 3/31/2022 | 12/31/2021 | 9/30/2021 | 9/30/2022 | 9/30/2021 | |||||||||||||||||||||
Interest and dividend income | ||||||||||||||||||||||||||||
Interest and fees on traditional loans | $ | 6,140 | $ | 4,965 | $ | 4,561 | $ | 4,426 | $ | 3,498 | $ | 15,666 | $ | 9,801 | ||||||||||||||
Interest and fees on PPP loans | 277 | 824 | 581 | 821 | 1,152 | 1,682 | 3,397 | |||||||||||||||||||||
Investment securities | 3,130 | 2,185 | 1,201 | 876 | 614 | 6,516 | 1,794 | |||||||||||||||||||||
Dividends on bank stocks | 86 | 51 | 17 | 19 | 17 | 154 | 72 | |||||||||||||||||||||
Other | - | 2 | - | - | 5 | 2 | 11 | |||||||||||||||||||||
Total interest income | 9,633 | 8,027 | 6,360 | 6,142 | 5,286 | 24,020 | 15,075 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 1,062 | 300 | 221 | 189 | 192 | 1,583 | 566 | |||||||||||||||||||||
FHLB & Fed borrowings | 327 | 159 | 17 | 20 | 17 | 503 | 81 | |||||||||||||||||||||
Total interest expense | 1,389 | 459 | 238 | 209 | 209 | 2,086 | 647 | |||||||||||||||||||||
Net interest income | 8,244 | 7,568 | 6,122 | 5,933 | 5,077 | 21,934 | 14,428 | |||||||||||||||||||||
Provision for loan and lease losses | 859 | 10 | 702 | 837 | 149 | 1,571 | 759 | |||||||||||||||||||||
Net interest income after provision for loan and lease losses | 7,385 | 7,558 | 5,420 | 5,096 | 4,928 | 20,363 | 13,669 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Customer service and other fees | 257 | 321 | 300 | 264 | 250 | 878 | 809 | |||||||||||||||||||||
Other income | 551 | 183 | 262 | 118 | 118 | 996 | 346 | |||||||||||||||||||||
Gain on sale of loan | - | - | 943 | - | - | 943 | - | |||||||||||||||||||||
Gain on sale of securities | 478 | 1,179 | 278 | 1,392 | 1,657 | 1,902 | ||||||||||||||||||||||
Total noninterest income | 1,286 | 1,683 | 1,505 | 660 | 1,760 | 4,474 | 3,057 | |||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 1,690 | 1,800 | 1,651 | 1,189 | 1,279 | 5,141 | 3,175 | |||||||||||||||||||||
Occupancy | 198 | 177 | 215 | 174 | 175 | 590 | 495 | |||||||||||||||||||||
Professional fees | 65 | 119 | 101 | 115 | 92 | 285 | 213 | |||||||||||||||||||||
Other general and administrative | 974 | 825 | 841 | 665 | 695 | 2,638 | 1,782 | |||||||||||||||||||||
Total noninterest expense | 2,927 | 2,921 | 2,808 | 2,143 | 2,241 | 8,654 | 5,665 | |||||||||||||||||||||
Net Income Before Taxes | $ | 5,744 | $ | 6,320 | $ | 4,117 | $ | 3,613 | $ | 4,447 | $ | 16,183 | $ | 11,061 | ||||||||||||||
Income Tax Expense | 843 | 1,235 | 919 | 990 | 1,048 | 2,997 | 2,594 | |||||||||||||||||||||
Net Income | $ | 4,901 | $ | 5,085 | $ | 3,198 | $ | 2,623 | $ | 3,399 | $ | 13,186 | $ | 8,467 | ||||||||||||||
Income Per Share | $ | 1.14 | $ | 1.18 | $ | 0.74 | $ | 0.61 | $ | 0.79 | $ | 3.07 | $ | 1.97 | ||||||||||||||
Tangible Book Value Per Share | $ | 11.54 | $ | 12.18 | $ | 12.61 | $ | 13.70 | $ | 13.02 | $ | 11.54 | $ | 13.02 | ||||||||||||||
WA Shares outstanding | 4,299,953 | 4,299,953 | 4,299,953 | 4,297,216 | 4,296,378 | 4,299,953 | 4,296,378 | |||||||||||||||||||||
Pre-Tax Pre-Provision Income | $ | 6,603 | $ | 6,330 | $ | 4,819 | $ | 4,450 | $ | 4,596 | $ | 17,754 | $ | 11,820 | ||||||||||||||
Net Interest Margin | 4.18 | % | 4.18 | % | 3.81 | % | 4.05 | % | 3.92 | % | 4.07 | % | 3.88 | % | ||||||||||||||
Cost of Funds | 0.66 | % | 0.25 | % | 0.15 | % | 0.15 | % | 0.17 | % | 0.38 | % | 0.18 | % | ||||||||||||||
Efficiency Ratio | 32.34 | % | 36.19 | % | 42.01 | % | 33.94 | % | 41.16 | % | 36.35 | % | 36.01 | % | ||||||||||||||
Return on Average Assets | 2.22 | % | 2.64 | % | 1.86 | % | 1.74 | % | 2.51 | % | 2.12 | % | 2.18 | % | ||||||||||||||
Return on Average Equity | 38.43 | % | 38.16 | % | 22.61 | % | 18.26 | % | 24.69 | % | 33.75 | % | 21.81 | % | ||||||||||||||
Leverage Ratio | 8.1 | % | 8.4 | % | 8.9 | % | 11.3 | % | 11.4 | % | ||||||||||||||||||
Asset Quality: | ||||||||||||||||||||||||||||
Non-performing loans to gross loans | 1.01 | % | 1.20 | % | 1.30 | % | 1.58 | % | 1.89 | % | ||||||||||||||||||
Non-performing assets to total assets | 0.57 | % | 0.68 | % | 0.78 | % | 1.02 | % | 1.22 | % | ||||||||||||||||||
Allowance for loan losses to gross traditional loans | 1.48 | % | 1.55 | % | 1.65 | % | 1.54 | % | 1.58 | % | ||||||||||||||||||
Criticized loans/assets: | ||||||||||||||||||||||||||||
Special mention | $ | 19,385 | $ | 11,661 | $ | 11,742 | $ | 17,745 | $ | 7,734 | ||||||||||||||||||
Substandard: Accruing | 1,911 | 1,931 | 12,882 | 3,766 | 4,729 | |||||||||||||||||||||||
Substandard: Nonaccrual | 5,431 | 5,530 | 5,631 | 6,629 | 6,710 | |||||||||||||||||||||||
Doubtful | - | - | - | - | - | |||||||||||||||||||||||
Total criticized loans | $ | 26,727 | $ | 19,122 | $ | 30,255 | $ | 28,140 | $ | 19,173 | ||||||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||||||||||
Investment securities | - | - | - | - | ||||||||||||||||||||||||
Total criticized assets | $ | 26,727 | $ | 19,122 | $ | 30,255 | $ | 28,140 | $ | 19,173 | ||||||||||||||||||
Criticized assets to total assets | 2.82 | % | 2.34 | % | 4.19 | % | 4.32 | % | 3.47 | % | ||||||||||||||||||
SOURCE: Solera National Bancorp, Inc.
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