LAKEWOOD, CO / ACCESSWIRE / October 21, 2021 / Solera National Bancorp, Inc. (OTC PINK:SLRK) ("Company"), the holding company for Solera National Bank ("Bank"), a business-focused bank primarily serving the Denver metropolitan area, today reported financial results for the three and nine months ended September 30, 2021.
Highlights for the quarter and six-months ended September 30, 2021 include:
- Pre-tax, pre-provision income climbed to a new record during the third quarter of 2021 at $4.6 million compared to $4.0 million for the second quarter of 2021.
- YTD net income was up 107% at $8.47 million for the nine-months ended September 30, 2021 compared to $4.09 million for the nine-months ended September 30, 2020.
- Cost of funds decreased to 17 basis points for the third quarter of 2021 and 18 basis points year-to-date 2021; this is a 50%, or 18 basis point, improvement over the 0.36% cost of funds for the nine-months ended September 30, 2020.
- The Company's efficiency ratio increased to 41.16% in the third quarter of 2021 compared to 35.06% for the second quarter of 2021, which reflects additional staff hired to support continued growth.
- Traditional gross loans were at $355 million for the nine-months ended September 30, 2021, a 49% increase compared to the nine-months ended September 30, 2020.
- Noninterest-bearing deposits rose 17%, or $55.5 million, quarter-over-quarter and $179.6 million, or 85%, year-over-year ending September 30, 2021 at $390.1 million.
- Asset quality remained constant with criticized assets at 3.47% of total assets and nonperforming assets at 1.22% of total assets as of September 30, 2021.
- Return on average assets increased by 25 basis points to 2.51% for the third quarter of 2021 compared to 2.26% for the second quarter of 2021.
- Return on average equity increased by 4% to 24.69% quarter-over-quarter.
For the three months ended September 30, 2021, the Company reported net income of $3.4 million, or $0.79 per share, compared to $3.1 million, or $0.71 per share, for the second quarter of 2021 and $2.1 million, or $0.51 per share, for the three months ended September 30, 2020. For the nine months ended September 30, 2021, net income was $8.5 million, or $1.97 per share, compared to $4.1 million, or $0.98 per share, for the nine months ended September 30, 2020. Scott Wilson, CEO, commented: "The results of this quarter demonstrate our trajectory of consistent growth, outperforming our peers, and increasing our stockholders' equity. We couldn't be more excited for the future of the bank."
Total assets were $551.9 million at September 30, 2021, an increase of 36% compared to total assets of $404.7 million at September 30, 2020. Total deposits were $489.1 million at September 30, 2021, an increase of 44% compared to total deposits of $339.7 million at September 30, 2020. Net loans were $415.9 million at September 30, 2021, an increase of 28% from net loans of $324.6 million at September 30, 2020. After adjusting for Paycheck Protection Program Loans, net loans were $349.2 million at September 30, 2021, an increase of 50% from $233.5 million at September 30, 2020. At September 30, 2021, the Bank had $66.7 million in Paycheck Protection Program loans, net, as compared to $91.0 million at September 30, 2020. The loans are considered short-term and are paid off by the Small Business Administration as the borrower(s) qualify for forgiveness. The outstanding balance of Paycheck Protection Program loans is expected to continue declining through the remainder of the year.
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 diverse economy, and a passion to serve our community through service, education and volunteerism. For more information, please visit https://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.
**FINANCIAL TABLES FOLLOW**
SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
($000s) | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 2,714 | $ | 2,525 | $ | 2,418 | $ | 4,384 | $ | 2,339 | ||||||||||
Federal funds sold | 15,000 | 2,700 | 2,000 | 6,200 | 6,000 | |||||||||||||||
Interest-bearing deposits with banks | 1,267 | 880 | 828 | 807 | 824 | |||||||||||||||
Investment securities, available-for-sale | 82,588 | 73,308 | 74,074 | 52,877 | 42,225 | |||||||||||||||
Investment securities, held-to-maturity | 10,423 | 10,421 | 10,420 | 10,418 | 10,416 | |||||||||||||||
FHLB and Federal Reserve Bank stocks, at cost | 1,626 | 2,330 | 2,766 | 1,322 | 1,256 | |||||||||||||||
Paycheck Protection Program (PPP) loans, gross | 68,901 | 97,172 | 135,102 | 73,705 | 93,372 | |||||||||||||||
Net deferred (fees)/expenses, PPP loans | (2,165 | ) | (3,118 | ) | (3,781 | ) | (1,520 | ) | (2,328 | ) | ||||||||||
Net PPP loans | 66,736 | 94,054 | 131,321 | 72,185 | 91,044 | |||||||||||||||
Traditional loans, gross | 355,636 | 328,633 | 307,304 | 271,184 | 238,400 | |||||||||||||||
Net deferred (fees)/expenses, traditional loans | (846 | ) | (688 | ) | (850 | ) | (782 | ) | (764 | ) | ||||||||||
Allowance for loan and lease losses | (5,633 | ) | (5,500 | ) | (5,500 | ) | (4,900 | ) | (4,124 | ) | ||||||||||
Net traditional loans | 349,157 | 322,445 | 300,954 | 265,502 | 233,512 | |||||||||||||||
Premises and equipment, net | 12,939 | 13,019 | 13,093 | 13,155 | 8,287 | |||||||||||||||
Accrued interest receivable | 2,334 | 2,080 | 2,444 | 1,886 | 1,855 | |||||||||||||||
Bank-owned life insurance | 5,015 | 4,989 | 4,963 | 4,937 | 4,910 | |||||||||||||||
Other assets | 2,086 | 3,241 | 5,839 | 2,119 | 2,010 | |||||||||||||||
TOTAL ASSETS | $ | 551,885 | $ | 531,992 | $ | 551,120 | $ | 435,792 | $ | 404,678 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 390,138 | $ | 334,620 | $ | 272,288 | $ | 235,172 | $ | 210,496 | ||||||||||
Interest-bearing demand deposits | 12,809 | 15,979 | 15,487 | 12,576 | 8,961 | |||||||||||||||
Savings and money market deposits | 66,444 | 89,223 | 107,202 | 83,399 | 61,143 | |||||||||||||||
Time deposits | 19,678 | 27,647 | 50,207 | 50,999 | 59,089 | |||||||||||||||
Total deposits | 489,069 | 467,469 | 445,184 | 382,146 | 339,689 | |||||||||||||||
Accrued interest payable | 36 | 41 | 54 | 50 | 68 | |||||||||||||||
Short-term borrowings | - | 4,735 | 34,133 | - | 14,000 | |||||||||||||||
Long-term FHLB borrowings | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | |||||||||||||||
Accounts payable and other liabilities | 2,804 | 1,589 | 18,828 | 1,566 | 941 | |||||||||||||||
TOTAL LIABILITIES | 495,909 | 477,834 | 502,199 | 387,762 | 358,698 | |||||||||||||||
Common stock | 43 | 43 | 43 | 43 | 43 | |||||||||||||||
Additional paid-in capital | 38,748 | 38,748 | 38,668 | 38,518 | 38,518 | |||||||||||||||
Retained earnings | 17,185 | 13,786 | 10,722 | 8,718 | 6,870 | |||||||||||||||
Accumulated other comprehensive (loss) gain | - | 1,581 | (512 | ) | 751 | 549 | ||||||||||||||
TOTAL STOCKHOLDERS' EQUITY | 55,976 | 54,158 | 48,921 | 48,030 | 45,980 | |||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 551,885 | $ | 531,992 | $ | 551,120 | $ | 435,792 | $ | 404,678 | ||||||||||
SOLERA NATIONAL BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
($000s, except per share data) | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 9/30/2021 | 9/30/2020 | |||||||||||||||||||||
Interest and dividend income | ||||||||||||||||||||||||||||
Interest and fees on traditional loans | $ | 3,498 | $ | 3,298 | $ | 3,005 | $ | 2,792 | $ | 2,596 | $ | 9,801 | $ | 7,678 | ||||||||||||||
Interest and fees on PPP loans | 1,152 | 1,259 | 986 | 1,027 | 616 | 3,397 | 1,042 | |||||||||||||||||||||
Investment securities | 614 | 647 | 533 | 411 | 388 | 1,794 | 1,091 | |||||||||||||||||||||
Dividends on bank stocks | 17 | 29 | 26 | 15 | 15 | 72 | 47 | |||||||||||||||||||||
Other | 5 | 3 | 3 | 3 | 3 | 11 | 105 | |||||||||||||||||||||
Total interest income | 5,286 | 5,236 | 4,553 | 4,248 | 3,618 | 15,075 | 9,963 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 192 | 200 | 174 | 187 | 221 | 566 | 768 | |||||||||||||||||||||
FHLB & Fed borrowings | 17 | 33 | 31 | 18 | 19 | 81 | 69 | |||||||||||||||||||||
Total interest expense | 209 | 233 | 205 | 205 | 240 | 647 | 837 | |||||||||||||||||||||
Net interest income | 5,077 | 5,003 | 4,348 | 4,043 | 3,378 | 14,428 | 9,126 | |||||||||||||||||||||
Provision for loan and lease losses | 149 | 5 | 605 | 782 | 355 | 759 | 1,365 | |||||||||||||||||||||
Net interest income after provision for loan and lease losses | 4,928 | 4,998 | 3,743 | 3,261 | 3,023 | 13,669 | 7,761 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Customer service and other fees | 250 | 353 | 206 | 135 | 103 | 809 | 287 | |||||||||||||||||||||
Other income | 118 | 114 | 114 | 115 | 118 | 346 | 333 | |||||||||||||||||||||
Gain on sale of loan | - | - | - | 84 | - | - | - | |||||||||||||||||||||
Gain on sale of securities | 1,392 | 462 | 48 | 316 | 866 | 1,902 | 1,160 | |||||||||||||||||||||
Total noninterest income | 1,760 | 929 | 368 | 650 | 1,087 | 3,057 | 1,780 | |||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||
Employee compensation and benefits | 1,279 | 1,085 | 811 | 891 | 878 | 3,175 | 2,685 | |||||||||||||||||||||
Occupancy | 175 | 165 | 155 | 106 | 109 | 495 | 314 | |||||||||||||||||||||
Professional fees | 92 | 65 | 56 | 34 | 35 | 213 | 129 | |||||||||||||||||||||
Other general and administrative | 695 | 603 | 484 | 383 | 407 | 1,782 | 1,236 | |||||||||||||||||||||
Total noninterest expense | 2,241 | 1,918 | 1,506 | 1,414 | 1,429 | 5,665 | 4,364 | |||||||||||||||||||||
Net Income Before Taxes | $ | 4,447 | $ | 4,009 | $ | 2,605 | $ | 2,497 | $ | 2,681 | $ | 11,061 | $ | 5,177 | ||||||||||||||
Income Tax Expense | 1,048 | 945 | 601 | 649 | 564 | 2,594 | 1,091 | |||||||||||||||||||||
Net Income | $ | 3,399 | $ | 3,064 | $ | 2,004 | $ | 1,848 | $ | 2,117 | $ | 8,467 | $ | 4,086 | ||||||||||||||
Income Per Share | $ | 0.79 | $ | 0.71 | $ | 0.47 | $ | 0.43 | $ | 0.51 | $ | 1.97 | $ | 0.98 | ||||||||||||||
Tangible Book Value Per Share | $ | 13.02 | $ | 12.60 | $ | 11.40 | $ | 11.23 | $ | 10.75 | $ | 13.02 | $ | 10.75 | ||||||||||||||
WA Shares outstanding | 4,299,953 | 4,298,634 | 4,291,286 | 4,276,953 | 4,175,504 | 4,296,378 | 4,154,326 | |||||||||||||||||||||
Pre-Tax Pre-Provision Income | $ | 4,596 | $ | 4,014 | $ | 3,210 | $ | 3,279 | $ | 3,036 | $ | 11,820 | $ | 6,542 | ||||||||||||||
Net Interest Margin | 3.92 | % | 3.88 | % | 3.79 | % | 4.04 | % | 3.55 | % | 3.87 | % | 3.62 | % | ||||||||||||||
Cost of Funds | 0.17 | % | 0.19 | % | 0.19 | % | 0.22 | % | 0.27 | % | 0.18 | % | 0.36 | % | ||||||||||||||
Efficiency Ratio | 41.16 | % | 35.06 | % | 32.26 | % | 32.94 | % | 39.71 | % | 36.35 | % | 44.78 | % | ||||||||||||||
Return on Average Assets | 2.51 | % | 2.26 | % | 1.62 | % | 1.76 | % | 2.12 | % | 2.18 | % | 1.58 | % | ||||||||||||||
Return on Average Equity | 24.69 | % | 23.78 | % | 16.54 | % | 15.73 | % | 18.95 | % | 21.81 | % | 12.70 | % | ||||||||||||||
Community Bank Leverage Ratio (CBLR) | 10.3 | % | 9.6 | % | 10.1 | % | 11.3 | % | 11.4 | % | ||||||||||||||||||
Asset Quality: | ||||||||||||||||||||||||||||
Non-performing loans to gross loans | 1.89 | % | 2.07 | % | 0.31 | % | 0.36 | % | 0.41 | % | ||||||||||||||||||
Non-performing assets to total assets | 1.22 | % | 1.28 | % | 0.17 | % | 0.22 | % | 0.24 | % | ||||||||||||||||||
Allowance for loan losses to gross traditional loans | 1.58 | % | 1.67 | % | 1.79 | % | 1.81 | % | 1.73 | % | ||||||||||||||||||
Criticized loans/assets: | ||||||||||||||||||||||||||||
Special mention | $ | 7,734 | $ | 7,018 | $ | 6,665 | $ | 7,730 | $ | 13,300 | ||||||||||||||||||
Substandard: Accruing | 4,729 | 4,772 | 10,666 | 10,709 | 6,911 | |||||||||||||||||||||||
Substandard: Nonaccrual | 6,710 | 6,796 | 955 | 970 | 987 | |||||||||||||||||||||||
Doubtful | - | - | - | - | - | |||||||||||||||||||||||
Total criticized loans | $ | 19,173 | $ | 18,586 | $ | 18,286 | $ | 19,409 | $ | 21,198 | ||||||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||||||||||
Investment securities | - | - | - | - | 576 | |||||||||||||||||||||||
Total criticized assets | $ | 19,173 | $ | 18,586 | $ | 18,286 | $ | 19,409 | $ | 21,774 | ||||||||||||||||||
Criticized assets to total assets | 3.47 | % | 3.49 | % | 3.32 | % | 4.45 | % | 5.38 | % | ||||||||||||||||||
For More Information Contact:
Scott Wilson, Chief Executive Officer
319-541-8649
[email protected]
SOURCE: Solera National Bancorp, Inc.