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Solera National Bancorp Announces Third Quarter 2021 Financial Results

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
swilson@solerabank.com

SOURCE: Solera National Bancorp, Inc.



View source version on accesswire.com:
https://www.accesswire.com/669028/Solera-National-Bancorp-Announces-Third-Quarter-2021-Financial-Results

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